Regtstered Charity No. 1133077 Report of the Trustees and Unaudited Financial Statements for the Year Ended 31 August 2020 Gordano Valley Methodist Circuit GORDANO VALLEY METHODisr aRcurr TRUSTEES ANNUAL REPORT YEAR ENDED 31- August Z020 The Trustee5 have pleasure in presenting their report and the unaudited financial statements of the charity for the year ended 31" August 2020. The Trustees have adopted the provisions of Accounting and Reporting by Chartties.. Statement of Recommended Prartice applicable to charities preparing their accounts in accordance with the Financial Rep)rting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffective l January 20191. Outreach, community engagement and aspiring towards Church growth continue to be the emphasis in the culture that is being nurtured in the eight churches across the circuit. Objectives and artivfties In setting the objettwes arKI planning our artivities. Circuit Meeting {under the leadership of the Circuit Leadership Team ICLTJ. meets twice in each year. has gNen carefvl consideration to the Charity Commissioners. general guidance on public benefft and, in particular, to its supplementsry public benefit guidance on advancing our objertNes and conforms to the Charity Act 2011. Our aim is to encourage arKI enable people of all ages to become followers of Jesus Chris¢ and to learn and grow in Christian faith. The Gordano Valley Circuit is committed to celebrating and sharing the good news of the Gospel; that God loves us. Jesus died for our sins and is risen, and the HO￿ Spirit gives us strength and inspiration in our daily lives. We seek 8n)wth and renewal through the centrality of prayer and scripture, worship. and sacrament. We aim to do this bv: Passing it on By encouraging mission and outreach as an integral part of the life of every Christian and every congregation. 8y offering appropriate pastoral care to those inside and outside the Church. By continuing to develop God-glorifying worship and teaching which is engaging and relevant to people of all aEes and abilities. People By recognizingthat everyone is valuable arKI has sornething to offer and by encouraging everyone's gtfts. By placing a priority on the work with children and young people, while recognizing the needs of all generations. By working in local communities to build bridges wrth those outside Church lives. By resourcing ministers and lay staff to work in mission alongside Circuit Stewards and the congregation of the Circuiys churches. By working ecumenically and with other arcutts where appropriate. By identifying and resourcing training needs Within the CircuiL Property By prioritising'good prattl￿. in all things includingthe safeguarding of children and vulnerable adults. risk assessment. health and safety. employment and trusteeship. GORDANO VALLEY MEfHoDIST aRCUIT TRUSTEES ANNUAL REpoirr YEAR ENDED 31- August 2020 By making sure that churches in the CiroJit are well maintained, well resourced, and welcoming to all through good 5teward5hip of the money and buildings which have been entrusted to us. By linkin8 in to District and Connexional resources of the Methodist Church. Achievements and perfornian All eight of the church buildiry have been dosed for half of the last year because of the Covid-19 situation. All have adapted to this and found creatrve ways of working. Pastoral work has been carried out by phone and pastoral vistting teams have been ensuring that regular contart has been maintained especially with those who have been isolated. Most meetings have been taking place using online platfomis such as Zoom. All four sections have been doing servi￿$ on-line. As plans are made to re- open the buildings in Ortober. it is intended that on-line services will continue as they have proved to be a means of outreach into the local communities and beyond. Across the circutt various fomis of community engagement have been taking place. such as delNerin8 food to households in financial hardship. One person has now completed their trdining as an accredited Lcal Preacher and is now candidating for ordination in the Methodist Church. The circuft continues to train four others for local preaching. Volunteeis Almost all of the work undertaken bythe churches is that of volunteers. from preaching and leading worship to youth and children's work. pastoral visttin& stewardship of finance and buildings, right through to administration and fomiing of mission kKiliry. The urcurt continues to seek to engage everyone in the churches to distsm their own serse of calling and to live it out in local service. Plan5 for futwe years l. The staff team 15 in the process of shaping a Mission ArtM)n Plan around the four aspects of the Methodist Church 'Our callin￿ statement. 2. To continue to develop the growing culture of being outward looking a5 churches. 3. To support the church at Portishead High Street in its vision for redeveloping its premises in order to engage the community more effectively. 4. To ensure that new community erEagement loutreach initiatives are sustainable. 5. To continue to grow leadership especial￿ though the vocation of 5ocèl preachers ènd worship leaders. 6. To continue to ensure that the Circuit and all the churches Within it are kept updated with training and resource for safeguardin& 7. To continue to focus on the priority of growing the work with children and young people across the Circuit, resourcing the churches and making the most of opportunities ￿th in District and Connexional Metlwdism and the wider Church. 8. The appointment of one of the ministerial staff. Revd Nick Moxon was reviewed in the summer and the recommendation will be made to the Circuit Meeting that this be extended for a further five years from September 2021. 9. A sum of £ll,(xKI has been budgeted for manse maintenance in the coming year. GORDANO VALLEY METhODIST aRcurr TRUSTEES ANNUAL REpoKf YEAR ENDED 31- AW 2020 Flnanclal review During the year, the Grcuit received total income of £304.14012018-19 £289.8551 and dispersed £296.11412018-19 £288.0491. The trustees of the Circuit have every reason to believe that the Circuit is a going concern, principally because Churches continue to meet their assessments and the Circutt has adequate reserve5 to cover a shortfall in anticipated income. Thefe are no subsidiary undertakings. The ongoing financial effects of Covid 19 on individual church finances is uncertain wtth loss of ino)me through giving and lettings. A meeting of church treasurers and ministers will convene in Octoberto assess the current situotion and ongoing budget. The Circuit has the following principal sour￿5 of fvnds= Assessments on Churche5 Wlthin the Circu Grants from District (Nil this year) Contributions tovArds the cost of Lay Workers by Churches These sums are used to administer the Circuit and to provide grants to Churches and individuals in the Circuit so that they may embark on or continue wth projects that fulfil the mission of the Circuit by bringing more people to Christ or by providing facilities that might enable this to happen. Investsnent Pollcy and Perfornmnce To comply with Methodist Standing Orders. monies for long tem) investment are lodged with the Trustees for Methodist Church Purposes (TMCPI. TMCP acts as custodian trustee for all real estate held by circuits and for all large lover £20KI bequests and for the proceeds of sale of any property fomierly owned by the Circuit. These sums are invested in unitised investments or held on deposit. The investment returns are close to tracking the movements in the FTSE I￿ index. The deposit income mirrors the deposit rates elsewhere. GVMC trustees. investrnent policy is aligned with that of the Central Finante Board ICF8} and TMCP because these organisations take into corsideration the social. environmental and ethical considerations. both negatively and positive￿, that make investments suitable to the Meth(Idist Church. The Circuit has no funds lodged with TMCP now. Short temi depostts are lodged directly with the CFB and attract good rate5 of interest. There are no benchmarks for the expected retums or appreciation on investments at TMCP and CFB. It is the Circuits policy to manage the cash and investment resource5 of the Circuit so that a rate of return on investment- both by way of dividend and capital app￿ciatIon is obtsined at least as good as market rate considering the Circuwts low appetite for risk. The interest rate achieved on CFB deposits has been at 0.68% for the year. The rate in August 2020 vns 0.70%. Reserve5 and policy At the September Circuit Meeting the folkjwing Reserve Policy was approved: 31Page GORDANO VALLEY MEfHODIST aRcurr TRUSTEES ANNUAL REpoirr YEAR ENDED 31- August 2020 The minimum policy level of readily available part of the Circurts General Fund is such as to cover4 months of the coming yearfs budget less the salary costs of the presbyters. This would be held 50% by the Circuit and 50% by the Churches in the Circuit. This should be sufficient to meet any unforeseen item of major expenditure on manses andlor to be able. in the short temi. funding planned activities in the event of any inabilty to raise the full Circutt Assessment from churches. 2021>21 2019-20 Budget £301,680 £318.354 Less Presbyters Salary Costs £141.744 £137.067 £111564 £181.287 Reserve Level14 Months) £37.188 £60.429 Clrcult £18,594 £30215 Churches £18.594 £30.214 The reseryes held at the end of the year were as follows: Free Reserves Total Funds Less Designated Funds Less Designated Manses Property Fund Free Reserves 2,050,561 12.720 1,987.856 49,985 3.3 Collal)oratlve arrangements with connected thaTilie5 The Circurfs main source of Income was the assessments obts1￿1 from each church within the Circuit based on free will giwng plus Gift and on membership. Spltt 60% on income and 40% on membership worked on a three-year moving average. This was used to defray most of the cost of administering the Circuit. This sum amounted to £251.448 {201&19 £245.5321. The Circuit holds no funds as custodian trustee. It does, however, receive rnonthty contribution5 from churches within the Circuit which are payable to the Methodist Church Fund IMCFI. These sums are collected as agent for the MCF and are passed to the Distrirt within one month. Funds received by the Circuit as agent are not recognised as an asset in the finanoal ststements because the funds are not within its control. No fee is earned in respett of this agency arrdngernent and the Circuit incur5 Th) COSt through this arrangement. Trustee￿ responslbllltles Risk The Circuit is largety risk averse but especially in making grants to entities embarking on new and imaginative initiatNes, the Circuit is prepared to underwrite considerable risks. 41 Page GORDANO VALLEY METHODisr aRcurr TRUSTEES ANNUAL REPORT YEAR ENDED 31- A• 2020 Risks are managed by being av￿re of them. quantifying their impart not only in costs temis but in Possible rep￿atIonal or structural damage, laying them off through an insurer and minimising them bv not taking them or by setting up control systems that timeousty report any significant change in the risk. 4.2 Safe8uardin8 Every person has a value and digntty which come5 directlyfrom the creation of male and female in God's own image and likeness. Christians see this ￿tentIal as fulfilled by God's re-creation of us in Christ. Among other things this implies a duty to value all people as bearing the image of God and therefore to protert them from ham. Methodist Connexional prartice outlines commitment to the following principles: the care and nurture of. and re5pectFul pastoral ministry Wtth. all children. young people and adults • the safeguarding and protection of all children. young people and adults when they are vulnerable the establishing of safe, caring communtties which provide a loving environment where there is informed vigilance as to the dangers of abuse. We will carefully select and train all those with any responsibility within the Church, in line with Safer Recruitment principles, including the use of criminal records disclosures and registration with the relevant vetting and barring schemes. • We will respond without delay to every complaint made which suggests that an adult. child or young person may have been harmed. cooperating wtth the police and local authortty in any investigation. We will seek to work with anyone who has SLrfFered abuse. developing with them an appropriate ministry of inf0rn7ed pastoral ca￿. . We will seek to challenge any abuse of t4)wer. especially by arryone in a position of trust. • We will seek to offer pastoral care and suppor( including supen4ision and ￿ferra1 to the proper aLrthoflties. to any Member of our church community known to have offended against a child. young person or vulnerable adult. In all these principles we will follow legislation. guidan￿ and recognised 8￿d prattl￿. The Gordano Valley Circutt commÉts itself to ensuring the implementation of Connexional Safeguarding Policy,. government legislation, guidance and safe practi￿ in the Circuit and in the Churches. The Gordano Valley Circuit commits itself to the provision of supwrt, advice and training for lay and ordained people that will ensure people are clear and confhlent atvjut their roles and responsibilities in safeguarding and promoting the welfare of children and adults who may be vulnerable. 5trurture. govemance. and management The Circuit is an unincorporated association and is governed by the Methodist Church Act 1976, the Deed of Union and the Model Trust Deeds of the Meth(KJist Church and was rebristered wtth the Charity Commissioners on 2. December 2(Ll9. Strurture Circuits are the COOfdinating charities for local groups of Churches- Circuits pay the stipends of the ministers and employ lay staff to serve the Churches in the Circuit; most decisKJns are made or ratified at the Circuit meeting. A District is the ccwjrdinating chartty for a group of contiguous Circuits and makes its decisions at the half yearly synods. The Methodist conference meets once each year as the supreme denominational body for all Methodist Churches. SIPage GORDANO VALLEY METhODisr aRCUIT TRUSTEES ANNUAL REPORT YEAR ENDED 31- August 2020 l. Overall regulatory authority rests with the Methodist Conference. 2. The Connexional O￿lCe implements deasions made by conferen￿ and also is responsible for the stationing of presbyters and deacons {collectively known as ministers) in individual Circuits and Districts. 3. Connexional decisions are passed to the Chair of District and the appropriate officers of the District for implementation. 4. The District passes control down to Circuit level for local IMp￿Menta￿n by the superintendent Minister. ministerial staff and Circuit Stewdrds, and authority is delegated to the Circuit Meeting for certain matters. 5. The Circuit meeting passes regulatory control down to church councils for Ic¢al implementation by the presbyter. the Church Stewards, other ofFI￿r$. and this regulatory authority is then exercised by Church Councils a5 Managing trustees of their charity. Purpose of the arcuit The purposes of the Met*￿dISt Church are and shall be deemed to have been since the date of the union the advancement ofr. a. The Christian faith in accordan￿ with the dcKtrinal stsndards and the discipline of the Methodist Church, and b. Any charitable purposes forthe time being of any Connexional, District. fjrcuit. local or other organisation of the Methodist Church, and c. Any charitable purpose forthe time being of any society or instttutitin Subsidiary or ancillary to the Methodist Church. and d. Any purkxjse for the time being of any thaiity being a d*rity subsidiary or ancillary of the Methodist Church. The primary purpose of the circuit 15 to advance the mission of the Church in the G0rdar￿ Valley area of North Sornerset By providing opwrtunities for Churches to work together and suppjrt each other By offering to churches resources of finan￿. personnel and expertise. The Circuit serves the local churches and the D4Strirt and the Conference in the support. deployment and oversight of the various ministries of the Church. and in programs of training. The Circuit operates within a statutory framework of regulation and seeks to ensure that if follows Methodist Standing Orders. It relies on the Connexional Office at 25 Maryletone Road London NWI 5JR to provide guidance on changes that could affect the Circuit. Trustees afe members of the CiroJit meeting and are appointed as per the Constitution Practice and Discipline ICPDI of the Methodist Church, Stsnding order 510. The officers and representatives of the constitutive churches are eletted from those respective churches. The circuit officers- namely Circuit Stewards, Treasurer. Secretary. Property Secretsry. Safeguarding offi￿r. Local p￿a¢her5 Secretsryi and any other officers that may be appointed are norninated and elected by Circuit Meeting members. GORDANO VALiEY METHODisf CIRCU TRUSTEES ANNUAL REPORT YEAR ENDED 31 Au8USt Z020 The membership of the Circuit Leadership Team includes the ministers of the Circuit, the Circuit Stewards and Circuit Treasurer who are appointed by vote of the Circurt Meeting for a continuous term not n0rn7alty exceeding six years. The Superintendent Minister is ex officio chair of the CLT. When a position becomes vacant on the CLT nominations are invited from the ministers and lay members of the churches they represent. The Superintendent Minister then shares with them what the role involves. If they wish to be considered for the role. their names are taken to the Circuit Meeting for approval. The CLT nornia1￿ meets every months and deals with routine and exceptional matters. kt overseas the work of the Evangelism Enabler. finance, property. statHJnin& safeguarding and training. 5A Responsibilities of the fjrcult LeadershipTeam l. To forniulate and promote policies which will advance the mission of the Church in local churches and, in particular. to supervise the use of resources of personnel. property and finance and to assist local churches having exceptional problems. 2. To encourage ecumenical co-operation. 3. To act in an executive capacity in matters remitted to the Team by the Circutt Meeting. 4. To keep within tts purview all circuit concerns not dealt with elsewhere. 5. To contribute and resF)ond. as the case may be. to the development of Connexional policies as reflected in the work of the Conference and the Methodist council. and to carry out tts other responsibilities wrth any s￿h development in mind. 6. To be aware that the stipend of ministers is set current￿1 by reference to the change over a year in the Consumer Price Index and to the annual change in the Average Weekly eamings index Using a fomiula that was agreed by the Methodist Conference for all ministers within the Connexion. 7. Constsntly to be aware of the public benefrt guidance issued by tharity Commission. Reference and Administrative Details Name of the charlty The Gordano Valley Methodist Circuit. 50metirnes abbreviated to GVMQ Charity re8Stratlon number 1133077. registered in England and Wales on 2nd Detember 2LX)9. PTincipal Office The Office Christchurch Chapel Hill Clevedon BS217LL Tel. 01275 871483 ordanovalle methodists.info 71PaBe GORDANO VALLEY METhODIST aRCUIT TRUSTEES ANNUAL REPORT YEAR ENDED 31-Au8ust 2020 6A 5uperirtendent Mlnlster Revd. Dr Russell Herbert 65 Clrcult Treasurer Mr David Graham White Names ofTnthes The following served as trn￿teeS throughout part or all of the year 2019-20 or were trustees at the time of this report being approved: West TownlBackwell Mr B Kemmish Mrs P Marchant Chri5tchufch LE.P. Mr D Eggleston Rev C Jennings Mrs M Sutherland MrAPett MrDGWhite MrsCGale Kenn Road, Clevedon Mrs J Bailey Mrs S Roberts Mr C G Mills Mrs S Lillington Nallsea Mr N Hardman Mrs J Payne MrA Emery Mr D Markall CH CH To 31/812020 Mrs C Lomas Miss V Sowerby CH CH Add Min To 311812020 Rev R Herbert Mrs K Dommett Mr L Turner Min CH CH CH Mrj Richards Mrs J Mcmanus CH CH CMS From 1010912019 CH CH CH CH Mrs N Burge Mr G Roberts Mrs M Mills CH To 101512020 To 101512020 CH To 311812020 From 101512020 Mr R Lancaster Mr PTodd Mrs M Emery Rev D Mallett Rev D Sharp CH CH LP Min Sup From V912020 CH CH CH To 3U812020 Mrs I Powell Mr M Ferguson Portlshead Rev N Moxon Mr K Gathergood Mrs J Morris- Thurgood Mrs B Thompson Rev Heather Noe Smith Redcliffe Bay Mr D Uncles CH CH To 311812020 Mrs E Marsh CH From V912019 Min Mrs 5 aarke Rev B Hunt Rev P MortkKk Add Sup Sup To 3ty812020 CH CH Sup Rev Ann Owen Sup From V912019 CH From 181912019 Mrssmason CH 8IPage GORDANO VALLEY METHOtMsr aRcurr TRUSTEES ANNUAL REPORTYEAR ENDED 31 Aiyist Z020 Rev D Harris Yatton MrT R Calderbank Mr M Buckley Mr A Williams Mrs A Hawkins Rev A Pri Mrs B Hook Reference Sup Mrs J aotelDavisl CH CH Add Rev l Bowley Mr R Eele5 Mr A Osbome Rev J Flowers Mr K Woodman Mr B Patth Sup CH CH Min To 101212020 To 311812020 CH Sup Add From 101212020 From V912020 From 151512020 Add Additional Member cs Circuit Ste￿ard LP Local Preachers Rep. 6.7 Superintendent Minotsrfs PA CH Church StewardlRep. Circutt treasurer Supemumerary Minister CMS MIN Circutt Meeting Secretsry Minister Sup Mrs. Kathryn McManus-Jone5 Bankers National Westminster Bank PLC 89 High Street Weston-super-mare North Somerset BS23 IHJ Investment managers and custodian trustees Central Finan￿ Board ofthe Methodist Churth 9 Bonhill Street London EC2A 4PE Trustee5 for Methodist Church Purposes Central Buildings Oldham Street Manchester Ml IJQ 6.10 Irbdependent Examlner Geoffrey Speir5 FCA ICAEW Haines Watts, Chartered Accountants Bath House 6-8 Bath Street Bristol BSI 6HL Approval The trustees report was approved bythe board of trustees on and signed on its behalf by: Revd Dr Russell Herbert LbLI David Graham White Date l)ate Name of Circuit: Gordano Valley Statement of Financial Artivities ISOFAI for the year ended 31 August 2020 Circuit Number- 07115 tlesignated Funds Total 201￿20 Totsl 201&19 Fund Income and Endowments from.. Charitable Activities- Assessment on churches Income from charitable artivities- lettings Investments Grants Other Income Totsl Income and End(virnents 251.448 251,448 245,532 407 407 359 51.785 303,233 52,285 304,140 43.964 289.855 907 Expendlture Expendlture on charFtable activiUe5 Management of the Ciriuit: Grants and donations Salaries and associated costs Property Office Expenses District Assessment Other outgoings Total charitable expendfture 5,015 205,650 14.478 4.494 52,046 1.506 283,189 491 5.506 205,650 26,912 4,494 52,046 1,506 296.114 5,760 210,613 16,978 3,847 48,132 2,719 288.1149 12.434 io 12,925 Net incom1n￿{o1rtSo1n£> resources l￿fore transfers 20,044 -12.018 8.026 1.806 Transfer5 between funds Reclassifscation of funds Other gains/losses -13.000 13,LNJJ Net movement of funds 8.026 1,806 Total funds brought forward 42,941 1.990.145 2.042.535 2.040.729 Totsl funds carrled forward 49.985 1.991.127 2.050.561 2.042,535 10 I Page Gordano Valley Methodist Circuit Balance Sheet as at 31 August 2020 CircuFt Number: 07115 Unre5trirted Funds Totals 2020 Totsls 2019 Funds Fixed A55ets Circuit Manses BS1 1.987.856 1.987.856 1.987,856 Totolfixed ossets 1,987,856 1.987.856 1,987,856 Current A55ets Debtors Central Finance Board Deposits Cash at Bank and in hand Total (uffentossets BS2 BS3 B53 20,083 51,783 3,732 75.598 20.083 64.503 3,732 88.318 19.775 60,497 -186 80,086 12.720 12.720 Creditors (due in under l yearl 25.613 25,613 25.407 Net Current ussets/liobilities 49.985 12,720 62,705 54,679 Totolossets less Current lia￿litIeS 49,985 2.1XXI.576 2,050,561 2,042,535 Creditors and Accruals includin loans due after m re than I an 49.985 2.IXM).576 2.050,561 2,042,535 Fund5 of the fjrcutt General fund Iunrestrictedl Circuit Model Trust Fund Iunrestrictedl Designated Funds Iunrestrirtedl Total unrestri￿ Funds Restricted Funds BS5 49,985 42.941 2.OW.576 2,1￿},576 1,999,594 2,042,535 49.985 2,050,561 Total Funds 49.985 I(XKI.576 2x150.561 2.042,535 Approval The financial ststements were approved by the Circuit Board of Trustees on and were signed on its behalf by- I SLL LOU Revd Dr Russell Herbert Dawd Gr3harn White Date Date Ill Page The Gordano Valley Methodlst Qrcult Notes to the accounts for year er¥ling 31 AIw5t 2020 l Basb of accountlng and a¢¢(wnting policies Basis of accounting The financial Stateme1￿ have tjeen prepared in accordance with the Charities SORP IFRS 1021 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting standard applicable in the UK and Republic of Ireland (FR5 1021 {effective I January 20191,. Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. and the (harities Act 2011. The financial 5tstements have been prepared to give a 'true and fair. view and have departed from the Charities IAccounts and Reports) Regulations 2C¥)8 only to the extent required to provide a 'true and fair view.. This departure has involved following Accounting and Reporting by Charities Preparing their Accounts in Accordance with the Financial Reporting Standard Applicable in the UK and Republic of Ireland IFRS 1021 (effective l January 20191 rather than the Atcounting and Reporting by Charities- ststement of Recommended practi￿ effective from l April 21J)S which has Sin￿ been withdrawn. Public benefit entity The Gordano Valley Methodist circuit meets the definition of a public benefrt entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unle55 Otherwise ststed in relevant accounting poliry note{sl below. Basls These accounts have been prepared on the basis of historical c05t. The accruals basis has been used and trustees present actounts that show a true and fair view of the Circulys financial position ènd activitie5. Content The financial information presented is relevant. reliable. comparable and complete. Where estimates are used these are based on experience. research and judgement. The accounts are expressed in £Sterli￿ rounded to the nearest pound. Going Concern The accounts have been prepared on the assumption that the tharity is able to continue as a going concern. However. the Covid-19 pandemic is likely to have 3 profound impact on the ￿0bal economy and may in turn affect the charity. The trustees have ton5idered the impact of this issue on the charity's current and future financial position. The charity holds unrestricted, general reserve5 of £49.985 and designated reserves that can be drawn down rf necessary of £12,720. The trustees consider that the charFty has sufficient cash reserve5 to continue as a going con￿rn for a period of at least 12 months from the date on whith these finanaal ststements are approved. Consolldatlon The Circuwt has denominational regulatory oversight in respett of the work of the thurche5 Wlthin the arcuit but has no legal or O￿TatIOnal control of those churches and their governing LM)dies except in extreme circumstsnces. For this reason, the financial statements of churches within the Circurt are not consolidated Into these financial statements. Income recognition i. IZI Page The GordarK• Valley Methodist Circuit Note5 to the accounts for year endin8 31 A• 2020 Income is brought into account when there is entitlement. and the amount is reliably measurable once it Is more than likely than not that the economic benefit of the income will be forthcoming. Individual amounts categorised as Other income in the SOFA will be shown separately if they are considered material. The Circuit acts as agent in the collection from churches and payment over of their contributions to various Funds controlled ond administered by The Methodist Church- "Connexional Funds" In all these mattets the transartions are Th)t reflected in the SOFA because they are the income of ef(her the Connexion or Churches as appropriate. Instead, the transattions are disclosed in the Notes to the Accounts. In accordance with the charities SORP IFR51021, the time of volunteers is not recognised. Further information on this matter is provided in the Trusteeg Annual Report. If goods are donated. a value will be shown in the SOFA or Notes where the value is considered material. Expenditure This 15 recognised when a liabilÈty is incurred. or a con5trurtive obligation arises, whe the amount is reliably measurable. and it is considered more likely than not that there will be an outhow of economic benefft. IX. VAT Since the Circuit is not VAT registered. all input VAT is charged with the expenses to which rt refers. Tangible fixed assets a. These are capitalised if they can be used for rnore than one year, and individually cost at least £l.IKX). b. The Freehold property14 manses) are valued at deemed cost of El,945.¢J)O. as at I September 2015 by professional valuation. plus subsequent additions at a cost of £42.856. No depreciation is provided on the buildings because the trustees consider the current residential fair Wdlue of the manse building lon the assumption that it had reached the end of its useful ecortomic life by the year end) to be not less than its Cost to date. Any depreciation would not be material. The property has been reviewed for impaimient. d. The Circuit makes use of the deemed cost transitional provisions of FR5102 SORP2015. Basic Financial Instrwnents The charity has finanaal assets and liabilities of a kind that qualtfy as basic financial instruments. Basic financial instruments are recognised at tran5artion value and subsequently measured at their settlement value. Debtors and Creditors Debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid. b. Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will normalty result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Credstors and provision5 are normally recogni5ed at their settlement arnount. viii. xi. xii. 131Page The Gordano Valley Methodist arcuit Notes to the accounts for year endlng 31 Aiigust 2020 Short temi Ilquld investments and cash Cash at bank is held to meet short-term cash commttments as they fall due rather than for investment purposes and includes all cash equivalents held in the form of short-term highly liquid investments. Cash equivalents are short-term. highly liquid investments that are readily convertible to known amounts of cash and that are subjett to an insignificant risk of changes in value xiv. Methodlst Connexlonal Funds The Methodist Church Connexion raises assessments against circuits and these are paid monthly to their districts. The circutts raise assessments against churches in the Circuit. The District remits to The Methodist Church Fund most of the sum received from circuits. A small sum is retained by the Distritt to meet its own costs. The Circuit may art as agent for ad hoc collettions for various funds controlled ènd administered by The Methodist Church. Funds The fund5 held constitute- General Funds held for any charitsble purpose of the Circutt which are unrestricted. Designated funds held for Specific purposes but are not restricted by any document or deed to that purpose alone. Mlnistff< manse costs The Circuit is required to provide accommodation for each minister in the Circuit and their families and this is seen as a benefrt to the Circuit. Ministers are expected to occupy the manse provided for them. The Circuit bears the cost of repairs, maintenance. building5 insurance. council Tax and water charges. These figures are not separately disclosed as benefrts-in-kind for ministers as HMRC does not seek to tax these receipts in the hands of minister Judgements and key sources of esilmatlon uncertainty No judgements (apart from those involwng estimates) have been rnade in the process of applying the above accounting policies. 2 Assessment on Churches The Circuit comprises 8 churches and each is assessed for a contribution to meet the overall net Costs of the Circuit. In making its assessment the budgeted income from investment income and property lettin& confirmed external grants and contribution from churches towards the cost of lay employees is considered. The Circuit aims to cover all tts core costs from the assessment. An Assessment on churches is annually determined by the Circutt using a formulaic method which takes into account the relative number of members in eath church and its freewill giving plus gift aid receipts. Assessments on churches are monthly in advance and are treated as pre-payments on receivable basis. If any church has not paid tts assessment by the due date the sum in question 15 treated as a debtor. 3 Grants Recelved "fijo grants were received by the circuit during this period. 141 Page The Gordano VallLy Methodist arcuit Notes to the accounts for yeai ending 31 Aw5t 2020 Other income comprises the followlw. 2019120 2018119 Contribution from churches towards lay workers Contribution for private Use of telephone and broadband by Ministers 51.481 43.660 304 Contribution to fencing at Clevedon Manse 51x1 Total Other income 52.285 43,964 5 Grants and Donati(m5 Grants are recognised in full when the award is made onte the Circuit accepts that there 15 3 legal or construttive obligation to make the payment and that payment is probable. The Circuit Meeting has approved the following payments to Connexional Funds from Circuit funds: Bristol Methodist Centre Methodist Fund for Property £2.375 Methodist Fund for the Support of Presbyters and Deacons £1.140 Leaders of Worship and Preachers Fund £700 In addition. the Circuit transfers £62.50 per quarter to its Mission Fund and grants totalling £491 to two groups were made in the year. 6 Stipends and Salaries and AssrKlated Costs Staff Costs paid during the year were: 2019120 2018119 Gross wages, salaries and benefits in kind Employerfs National Insurance costs Pension costs 156.664 156.577 12.C#)9 12.325 28,918 29,369 Other employment costs 8,059 12.667 Totsl stsff Costs 205,650 210,613 No employees re￿Ned employee beneffts of rnore than £60,LKM). There is no accrual for holiday pay as it is immaterial. The holiday year ends on 31 August 2020. All staff are paid at or above the living wage. 2019120 2018119 io Total number of stsff Full time equivalent 6.33 4 trustees are presbyters of the Circutt in receipt of a salary. costs of £137.99412019- £133.5161. travel costs of £3.47212019- £4.536}, telephone costs of £2.63012019- £2.97613nd training of £15012019- £960). 151Page The G¢xdano Valley MetlKxlist arcuit Notes to the accounts for year endinz 31 AW 2020 Penslons Most ordained presbyters and deacons are members of the Mini5ter< Pension Scheme IMMPSI. This is a defined benefit scheme. The Supreme Court held in 2014 that Methodist ministers (which tem) includes presbyters and deacons) are not employees of the Church. For simplicity, however, when dealing with National Insuran￿ Contributions the temis 'employerf and 'employee' are used as they would be in an employing boty. On the other hand lay employees are Contractual￿ ernployee5 and have the option ofjoining a pension scheme whith the Circuit has arranged with NE5f. Thi5 is a defined benefit scheme and the Circuit contributes os employer to this scheme. The Connexion accounts for both pension schemes and Shows the figures in the annual Methodist Church in Great Britain. The MMPS is in deficit but a plan for the removal of the deficlt has been proposed and is being implemented. 7 Payment to Trnstees There were no payments made to trustees for additional servi￿$ provided to the Circuit by agreement with the Circuit Meetin& this excludes stipends. 2019120 2018119 Number of Trustees Total amount £41 £39 Trustee expenses Expense payments primarily relate to reimbursement for travel and ststionery costs 8 Fees for examlnatlon ofthe accounts 2019120 2018119 Independent examinerfs for rerA)rting on the accounts Other fees leg: advice. accountancrf services) paid to the independent examiner or auditor: Accountsncy Software 2.496 2,424 137 121 9 Property Expenses The Circuit is the Managing Trustee for 4 manses which are occupied by ministers ststioned in the Circuit. The circuit is responsible for the payment of Council tsx. water ¢harge5 and insurance. The cost of ongoing maintenance and irnprovements to all properties 15 funded through a Designated 'Manse Maintenance Fund and a transfer of £3,IXKI p.a. per manse is made from the General Fund. Interest received from Central Finance Board Deposit is credited to this account. The level of transfer is reviewed by the trustees each year. The work outstanding at Clevedon last year to reconfigure the front steps and install a handrail 15 still to be completed. Sundry work in the kitchen and a replacement cooker at Nailsea manse. To assist the family at Portishead a stud wall was removed and at YattoD attention was given to the shower and replacing a gas fire which had ended its pemiitted life. 161 Page The Gordano Valley Methodist arcuit Notes to the accounts for year endlng 31 Aiwt 2020 10 Distrirt Assessment The Di5tritt Assessment is cakulated relative to the proportion of Church members and staffing (Presbyters and lay staff f.t.e.. less administrative staffj of all Circuits in the Bristol District. 50% of the overall cost is cakulated using relative membership proportion5 and 50% using relative staffing proportions. 11 Comparative SL*ement of Financial Pxtlvftles General Fund Designated Funds Totsl 2018-19 Inctmne and Endo￿n￿ from: Charitable Artivities- Assessment on churches 245.532 245.532 Income from charttable artivities lettings Investments 359 359 Grants Other Income 43.964 289,496 43,964 289￿55 Totsl Income and Endowments 359 Expendfture Expenditure on charitsbFe actlvlties Managemem of the arcult: Grants and donations Salorie5 and associated costs 4,894 210,613 13,934 3.847 48,132 2,719 866 5,760 210,613 16.978 3,847 48,132 2,719 288.049 Property Office Expenses District Assessment Other outgoings Total charitable expenditure Net incomingl(outgoing) resources before transfers io 3.910 5,357 -3.551 Transfers between funds -13.000 13,C(rf) Net movement of fund5 -7.643 Total funds brought forward 50,584 1.990,145 2.040.729 Total funds carrled forward 42￿41 1.999,594 2.042.535 171 Page The Gordano Valley Methodist ￿rCUit Notes to the accounts for year endlng 31 August 2020 BSI Manses & Other Property Buildings comprise of 4 manses located in Clevedon. Nailsea. Portishead and Yatton and were professionally valued to detemiine deemed cost a5 at 31 August 2015. Property Cost or valuatlon Balance brought forward on I September. at cost Balance conledfvrword BS2 Debtor5 and Prepayments 1.987,856 1.987.856 General Designated Total 2020 2019 Prepayments Stipends. Pension & Nl Insurance 11,808 1.881 5,856 538 11,808 1.881 5.856 538 11.494 1.811 Council Tax Other prepayments Totols 870 19.77S BS3 Central FInan￿ Board (CFBI al￿ Bank Balances Monetary balances held at the Central Finance Board of the Methodist Church and at National Westminster Bank plc are all available on demand without loss of interest. The split of these balances across General and Designated Funds is arbitrary but wherever possible balances are not shown a5 negative. General Designated 12.720 Total ZO20 2019 Central Finance Board 51.783 64.503 60.497 National Westminster Bank plc 3.732 3.732 -186 Ttrtals 55515 12,720 68235 60,311 BS4 Creditors, Atoual4 and Income in Athan It is experted that all sums accrued as at 31" August 2020 will be paid during the year to 31 August 2021. 181 Page The Gordano Valley Methodist arcuit Notes to the accounts for year ending 31 August 2020 General Totsl 2020 2019 Income in athiance Assessments in advance 16.894 16,894 16.788 Creditors and Accruals Accountancy cost Accounts payable Others 2.51KI 5.911 208 5.991 228 5,991 228 Totuls 25,613 25,613 25807 B55 Summary of fund movements Balan￿ at 311912019 42.941 Fund Income Balance at 311812020 49.985 Expenditure TransFers Gai￿Lo$SeS General 303.233 -283,189 -13.000 Designated -manse maintenance 9.782 )7 -12.434 12.¢XI) 10,255 Designated- Mission Designated- Stationing Designated Manses Property 1.206 750 491 250 965 750 1,500 1.987.856 1.987.856 Total General and designated 104U35 30L140 -296,114 2,050.561 Total funds IIM2.535 304,140 -296,114 2,050.561 Manse Malntenance- Re￿iVeS quarterty transfers of £3.C(10 from the General Fund based on the number of manses and against this is charged routine maintenance, repairs and as the need arises, and renovation of fittings. The cost of quinquennial inspections 15 also charged to this fund. Mission Fund- ReceNes quartedy transfers of £62.50 from the General Fund and against thisi grants are made to Churches, groups or individuals for the furtherance of the Circuits mission within the Gordano Valley Circuit. Man5￿ Property Fund This fund represents fair value of manses held by the Circuit. 191 Page The Gwdano Valley Methodist Circuit Notss to the accounts lor year endinz 31 August 2020 B55a Comparatlves for movements in fund5 Fund Balance at 311912018 50584 Balance at 311812019 42,941 Income Expenditure Gall￿/L0$ General 289.4% -284.139 -13.000 Designated-manse maintenance 467 3S9 12.IMI 9.782 Designated- Mission Designated- Stationing Designated Manses Property Total General and deslgnated 1.822 -866 250 1.206 750 750 1,987.856 1.987.856 2,040.729 289￿55 .188,049 2,042,535 Total funds 2,040,729 .288049 2,042,535 BS6 Analysis of net assets between funds Fund balances at 31 August 2020 are represented General Total 2020 Tangible fixed assets Investments 1,987.856 1.987.856 Current Assets 75.598 -25.613 12.720 88.318 -25.613 Current liabilities Creditor5 due after one year Totats 49.985 2,(XKI.576 2.050,561 BS6a Comparatlve analysis of net assets between furmts. General Designated 1,987.856 Totsl 2019 Tangible fixed assets Investments 1.987.8S6 Current Assets 67,720 -24.436 12,424 -971 80,144 -25.407 Current liabilities Creditors due after one year Totols 1,999.309 2.042,593 201 Page The Gordano Valley Methodlst arcutt Notes to the accounts tor year endin8 31 August 2020 BS7 Connected Organlsatlons and Related Parties None of the Circuit trustees made donations direct to the Circuit during the year or the preceding year. All of the Circuit trustee5 are members of one or another Church within the Circuit and may be trustees in their Churches. Connected organisations include the Methodist Connexion. the Bristol District and Churches within the Circuit, other Methodist Districts in Great Brttain, CFB and TMCP. All of these entities have their own trustees or directors and autonomous administration such that the Circuit has no significant Influen￿ over any of them. nor they over the Circuit. They are therefore. not considered related parties. Funds handled on behalf of other& None of the figures tabulated below appear elsewhere in these accounts. Balance duelfroml/to the Circuit at 311812020 Names of related parties Party Receipts Payments Adjustments JMA Connexion World Mission Fund Connexion 1.220 1,220 Mission in Britain Fund Connexion 627 627 Totols 1,935 1,935 BS8 Volunteer Contributions Every entity Iconnexion. Distrirt. Circuit. Church) within the Methodist Church in GB is heavily reliant on volunteers who contribute their skills. time and money in the furtherance of the work of the Church. In the Circuit the principal contribution is by serving on committees of the Circuit that deal with mission, manses, finance, policy, training and safeguarding. We are gratefijl to all of them for their help and commitment. No attempt has been made by this Circuit to walue the non-rnonetary contributions to the Circuit in monetary terms. BS9 Independent Examlner An accrual of £2,5(Ki has been made for the fee of the Independent Examiner. The Independent Examiner provided Accounting software services during the year. 211 Page 31 Au8ttst 202 Act and in out my examinotion I ha￿ foEloth￿d oll ts applicth Dir￿tIc￿ glven by the Charity Comrnission urtsse£tw)n 14515Xbl oftt*AcL Sin￿the chartVs8ross incowe excee(kd £250.IXQYoure¥Ami￿rmUSt bea memberofa body listed in s&tion 145 of the ACL I confrm that l am qualified to wylertth the e¥ATrmnètl￿ because l a memberof ICAEW. which is ¢JnÈ ofthè lirted bodi nnection withthe exarnination winB me cause to tr￿1•*that in anym•erial r or of zttounts set out in the c￿ritieS Ikcotrt and Rew)rts) Regulations 21JX other than arry . with the examinath)n to whkh attentton sh)uld be