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THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT – TRUSTEES’ ANNUAL REPORT 2022

THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT

(Charity Registration No. 1134222)

TRUSTEES’ ANNUAL REPORT

&

FINANCIAL STATEMENTS

For the Year ending 31 August 2022

Ø Annual Report

Ø Appendix “A” - Reserves Policy

Ø Summary Finance Report

Ø Financial Statements (separate document)

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THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT – TRUSTEES’ ANNUAL REPORT 2022

1. Objectives and activities

In setting our objectives and planning our activities The Circuit Meeting (under the leadership of the Circuit Leadership Team [CLT]), as Circuit Trustees, meets at least three times in each year, has carefully considered the Charity Commissioners’ published guidance on public benefit and conforms to the Charities Act 2011.

Our mission and calling is to respond to the Gospel of God’s love in Christ and to live out its discipleship in worship and mission. In furtherance of this, we will use the circuit’s resources to:

Increase awareness of God’s presence and celebrate God’s love
Help people to grow and learn as Christians through mutual support and care
Be a good neighbour to people in need and challenge injustice
Make more followers of Christ
In all the above we will seek to work ecumenically wherever possible

2. Achievements and performance

The principal purpose of the Circuit is to act as a supporting body between Churches, District and the Connexion. The Circuit is responsible for the selection and allocation of Presbyteral resources along with any lay workers who may be required in administrative and pastoral roles. Although the Circuit does have contact with the public, most of the direct contact is by the Churches within the Circuit.

The Circuit sets out its objectives through a “Next Steps” plan. This Plan is reviewed throughout the year and progress against the set objectives and strategies is monitored and documented. Action is taken where objectives are not being met. The Next Steps Plan serves as a dynamic tool and thus enables the Circuit to set goals and challenges on an ongoing basis. During the year, owing partly to Covid-19 and in common with many similar organisations, churches in the Circuit experienced difficulties in meeting physically. Although many found alternative means (Zoom/YouTube etc) this has continued to impact on finances and the sense of mutual fellowship which can only really be found by physical meeting.

Activities in 2021/22

Across the circuit churches, safe spaces are provided for nursery, after school clubs, guides, and scouts meetings, weekly coffee mornings and community lunches, messy church etc.

In one of the churches in the Luton section of the circuit there is a coffee morning on every first Sunday of the month which is open to the community and especially rough sleepers and homeless people.

Some of the circuit churches are actively involved in food banks and have designated collection days. As places of welcome and hospitality, in addition to our normal worship and special services most of our circuit churches act as hosts to other church communities.

Events

a) Open-air Circuit Service on Dunstable Downs June 2022.
b) Circuit ‘Next Steps’ gathering with District Evangelism Enabler, May 2022.
c) Easter ‘Walks of Witness’ in various local communities with Churches Together, April 2022.
d) St John’s – held an outdoor Summer Community Day, July 2022.

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THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT – TRUSTEES’ ANNUAL REPORT 2022

e) Circuit commissioning service for EDI (Equality, Diversity and Inclusion) report (Sept 2021) and subsequent meetings to explore different aspects of EDI in the life of the Church and Circuit.

Community Engagement

a) Working with local schools through leading assemblies and hosting children’s visits to Churches at Christmas and Easter
b) Olive Tree Church Community Work – engagement with Muslim women and families in the local community, offering safe space for pre-school play, improving English classes, keep-fit, and craft group.
c) St John’s runs a youth drop-in after school club which includes basketball, pool, football and table tennis led by paid Youth Worker and team of church volunteers.
d) Some ministerial staff and church volunteers recommenced leading worship in care homes for the elderly in their locality, since Covid lockdowns ceased.
e) High St, Leagrave has a number of regular lettings for the community, including a nursery, scouts and other worshipping communities as well as occasional lettings.
f) Supporting work with refugees and asylum seekers in the local area, by fundraising, donating clothes, and knitting blanket squares.
g) Offering space for community garden projects on church premises that promote good mental health for participants in the local area.
h) Oakdale has a Roma worshipping community, as well as hosting the Zimbabwean fellowship. It has installed planters with flowers growing outside to improve the environment on its busy street corner in Bury Park, which before attracted fly tipping and a lot of rubbish. It is looking to install a bench as well.

Looking forward to 2022/23

The Circuit Leadership Team continues to discern its future structure and strategy to fulfil ‘Our Calling’ and be fit for purpose in the current age. In view of this, churches are being encouraged to merge, where practical, to become one church over multiple church sites with the potential for sharing resources, i.e. people skills, worship and outreach projects, thereby, reducing the administrative burden on ministerial staff and church volunteers.

Of equal importance is resurrecting and reinvesting resources and time in youth work within the circuit

Under the heading, Collaborative arrangements with connected charities (3.3 below) there is information on how we obtained our funds. In this paragraph, we show how they were spent. The money collected, or available for disbursement, was used exclusively for the following purposes

the stipends and associated employment costs of our presbyteral staff
the employment costs of our lay employees
the cost of Quinquennial property inspections on our Circuit churches and manses
by way of a set annual provision, the repairs, maintenance and refurbishment of our manses
by way of set annual provision, the training needs of our staff and church members

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THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT – TRUSTEES’ ANNUAL REPORT 2022

Through our Circuit Model Trust Fund (CMTF) we make grants to support Circuit churches in their work in their local communities. Such grants may be for specific mission related projects or to assist with property projects. The Circuit may also make grants direct to external bodies, for example, to assist with ecumenical projects.

The policy of the Trustees on grant making is to ensure that all applications can demonstrate public benefit, pass a test of sustainability, show that there is a commitment from the applicant organisation (e.g. the Circuit grant is only a part of the total funding) and show imagination and creativity as well as a perceived need for that which the grant is being applied.

Details of the grants made in this financial year are set out in the attached Financial Statements. It should be noted that it is the Circuit policy to provide for the full amount of any grant, in the year of commitment, even if the drawdown of such grant is over an extended period.

Churches that have received grants from the Circuit will show these in their own Trustees’ Annual Report (where this is required to be prepared) along with details of their achievements from the activities undertaken because of receiving the grant.

3. Financial Review

The Financial Statements are included as part of this Report and give a full and detailed disclosure of the income and expenditure of the Circuit covering our Unrestricted Funds (including Designated Funds) and Restricted Funds. There were no significant events during the year.

The Circuit has the following principal sources of funds which are used to administer the Circuit:

Investment income and gains
Assessments on Churches within the Circuit

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 Circuit has adequate reserves to cover a shortfall in anticipated income. There are no subsidiary undertakings. Trustees do not foresee any factors that will significantly affect the financial performance or position in the next year or two. However, the trustees are conscious that the Circuit is dependent upon the Assessment on churches to maintain its current overall level of staffing. Therefore, we have systems in place to monitor the financial health of our churches and recognise that the overall financial resources of churches are finite.

3.1 Investment Policy and Performance

To comply with Methodist Standing Orders, monies for long-term investment are lodged with the Trustees for Methodist Church Purposes (TMCP). TMCP acts as custodian trustee for all real estate held by Circuits and for all large (over £20k) bequests and for the proceeds of sale of any property formerly owned by the Circuit. These sums are invested in unlisted investments or held on deposit. The investment returns are close to tracking movements in the FTSE 100 index. The deposit income mirrors the deposit rates available elsewhere. The Circuit Trustees’ investment policy is aligned with that of the Central Finance Board of the Methodist Church (CFB) and TMCP because these organisations take onto consideration the social, environmental and ethical issues (both positively and negatively) that make investments suitable for the Methodist Church.

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THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT – TRUSTEES’ ANNUAL REPORT 2022

Short term deposits, not required for immediate cash flow, are lodged directly with CFB and attract good rates of interest.

There are no other benchmarks for the expected returns on investments at TMCP and CFB. The objective for the Circuit is a rate of return at least as good as market rate considering the trustees’ low appetite for risk.

3.2 Reserves Level and Policy

This is set out as a separate document an appears at Appendix “A”

3.3 Collaborative arrangements with connected charities

The Circuit’s main source of funding is the Assessments obtained from each Church within the Circuit. The Assessment is based on a formula which utilises the membership of each church and factored net income. The net income calculation is designed to take into account the relative costs of heating, lighting and insurance, together with a notional allowance for repairs and maintenance in order to place each church on a comparable baseline.

The Circuit holds no funds as custodian trustees. It does, however, receive on an ad hoc basis funds from Churches for Methodist Connexional Funds. These sums are collected as agent for The Connexion and are passed to the Connexion on a regular basis. In addition, the Circuit may receive grant monies from both the District, and/or the Connexion where an application has been made by the Circuit to fund an external organisation. Such funds received by the Circuit are not recognised in the Financial Statements because the funds are not within its control. No fee is earned in respect of the agency arrangement and the Circuit incurs no cost through this arrangement.

4. Trustees’ responsibilities

For each financial year ending on 31 August the Trustees are required to prepare financial statements which give a true and fair view of the Circuit's financial activities during the year and of its financial position at the end of the year. In preparing these financial statements, the Trustees must:

ü Select suitable accounting policies and applied them consistently;
ü Observe the methods and principles in the Charities SORP (FRS102);
ü State whether applicable UK Accounting Standards have been followed, subject to any material departures which are explained in the financial statements;
ü Make judgements and estimates that are reasonable and prudent;
ü Prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Circuit and enable them to ensure that the financial statements comply with the law. They are also responsible for safeguarding the assets of the Circuit and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Circuit’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT – TRUSTEES’ ANNUAL REPORT 2022

5. Structure, governance and management

The Circuit is an unincorporated charitable association governed by the Methodist Church Act 1976, the Deed of Union and the Model Trusts of the Methodist Church and was registered with the Charity Commission on 9 February 2010 (previously registered as Chiltern Downs Methodist Circuit under the same number)

The primary purpose of the Circuit is to advance the mission of the Church in South Bedfordshire by:

Providing opportunities for Churches to work together and support each other
Offering to Churches resources of finance, personnel and expertise

The purposes of the Methodist Church are and shall be deemed to have been since the date of union the advancement of:

(a) the Christian faith in accordance with the doctrinal standards and the discipline of the Methodist Church

(b) any charitable purpose for the time being of any Connexional, district, circuit, local or other organisation of the Methodist Church

(c) any charitable purpose form the time being of any society or institution or subsidiary or ancillary to the Methodist Church; any purpose for the time being of any charity being a charity subsidiary or ancillary to the Methodist Church.

5.1 Organisational structure

Ø Overall control rests with the Methodist Conference.
Ø The Connexional Office implements decisions made by Conference and is also responsible for the stationing of ministers in individual Circuits.
Ø Connexional decisions are passed to the Chair of the District and the appropriate Officers of the District for regional implementation.
Ø The District passes the control down to Circuit level for local implementation by the Superintendent Minister(s), ministerial staff and Circuit Stewards via the medium of the Circuit Meeting.
Ø The membership of the Circuit Meeting is laid down in the Constitutional Practices and Discipline of the Methodist Church. In simple terms the Circuit Meeting is made up of representatives from the churches within the Circuit (a minimum of 3 from each church, elected by the Church Council -there may be more as determined by the size of membership of the church), Circuit Ministers, Circuit Stewards and other office holders undertaking Circuit roles. Together, the members of the Circuit Meeting are the Managing Trustees of the Circuit.

Certain matters, principally those relating to property issues, need to be referred to the District (and the Connexional office - through the Trustees for Methodist Church Purposes [TMCP], acting as Custodian Trustees), but most matters are determined by the Circuit Meeting itself. The Circuit operates with a Circuit Leadership Team (made up of Circuit Stewards, Ministers and certain Lay Employees) which evolves policy and makes recommendations to the Circuit Meeting.

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THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT – TRUSTEES’ ANNUAL REPORT 2022

The South Bedfordshire Methodist Circuit comprises 20 churches located in Luton, Dunstable, Leighton Buzzard and the surrounding villages. They are listed below:

Aley Green Barton Beech Hill Edlesborough Dunstable, The Square Eaton Bray High Town Farley Hill Gravenhurst Harlington Mount Pleasant Kensworth Leagrave, High Street Leighton Buzzard, Trinity Olive Tree (St Margarets LEP) Strathmore Avenue Oakdale St John’s Toddington Wigmore (Methodist URC LEP )

5.1.1.1 Trustees

The Managing Trustees are the elected members to the Circuit Meeting. Owing to the number of individual churches in the Circuit and the fact that the majority of the Circuit Meeting members are those elected by individual churches, the make up of the Meeting is subject to frequent changes. The names of the trustees who served during the Connexional year 2020/21 are listed at 6.6 below. A current list of Trustees can be found on the Charity Commission website.

6. Reference and Administrative Details

6.1 Name of the charity

The South Bedfordshire Methodist Circuit

6.2 Charity registration number

1134222, registered in England and Wales

6.3 Principal Office

Office 3, Hightown Methodist Church,

49 High Town Rd

Luton

Bedfordshire

LU2 0BW

6.4 6.5 Superintendent Minister

Rev Patrick Kandeh

6.6 Circuit Bursar

Mr David Hallworth ACIB 7 Windsor Close Flitwick MK45 1PT

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THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT – TRUSTEES’ ANNUAL REPORT 2022

6.7 Names of Trustees

Valerie	Alderman	Pearl	Mathieson
Fiona	Arscott Smith	Jane	McFarland
Albert	Baker	Ann	Meader
Peter	Baker	Raja	Muthusami
Richard	Ball	Janice	Nelson
David	Bell	John	Nelson
Jeanne	Bell	Margaret	Newman
Nigel	Bibbings	Ishmael	Opoku-Gyamfi
Marion	Borgars	Roger	Owers
Gloria	Bradley-Marriot	Lawrence	Patterson
Ann	Cassidy	Ruth	Payne
Pauline	Doody	Sue	Penn
Ivor	Edwards	Christine	Pepworth
Wallace	Edwards	Jo	Prowse
Marjorie	Fleming	Colin	Quine
Anne	Gray	Jackie	Roberts
Sheila	Green	Brian	Roe
Michael	Hare	Steve	Rogers
Rosemary	Hare	Christina	Salmon
Gillian	Henley	Clive	Salmon
Michael	Henley	David	Sear
Helen	Hodder	Cathy	Sheehan
Janet	Hornsby	Joanne	Sherwood
Charles	Horsefield	Brenda	Shields
Enid	Horton	Terry	Sissons
Melda	Husband	Alan	Smith
Terence	Ilott	Sue	Stokes
Gill	Jardine	Glynnis	Thompson
Seung-Wook	Jung	Ken	Waller
Patrick	Kandeh	Norman	Willis
Sheila	Kay	Alison	Wilson
Sheila	Marsden

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THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT – TRUSTEES’ ANNUAL REPORT 2022

6.8 Bankers

The Co-operative Bank plc Central Finance Board of the Methodist Church PO Box 250 9 Bonhill Street Delf House London Skelmersdale WN8 67WT EC2A 4PE

6.9 Investment Managers Trustees for Methodist Church Purposes Central Buildings Oldham Street Manchester M1 1JQ

6.10 Independent Examiner

Theresa-Anne Warren GP Financial Management Ltd., 8 The Old Yard Lodge Farm Business Centre Wolverton Road Castlethorpe Milton Keynes MK19 7ES

6.11 Quinquennial Inspectors Cube Building Consultancy Ltd Suite 2, Franklin House 2 Steppingley Road Flitwick MK45 1AJ

Approvals

The Trustees’ Report and the Financial Statements were approved by the Circuit Leadership Team and will be presented to the Circuit Meeting on 27 June 2023

Patrick Kandeh (signed) David Hallworth (signed) Rev Patrick Kandeh David J Hallworth ACIB Superintendent and Chair of Meeting Circuit Bursar March 2023 March 2023

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THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT – TRUSTEES’ ANNUAL REPORT 2022

APPENDIX A

The South Bedfordshire Circuit

Reserves Policy

This document includes all funds held by the Circuit Meeting as charity trustees.

Our Reserves Policy relates to our general (unrestricted) funds which are available to be used for any or all of the purposes of the Circuit. It also notes the management of our restricted and endowment funds.

Other funds are also included for the sake of clarity and openness and to show that the Circuit has a policy for the management of all of its money not simply that which is defined as reserves.

Aim

Our aim is twofold:

(1) To secure and sustain the Circuit’s viability and future.

(2) To give reassurance to the general public that the Circuit, which is a charity, intends to use all of the money coming into its care for the purposes of the charity.

Mission Policy

Our financial resources help us to underpin the Circuit’s Mission by:-

(a) The support of the ministry and mission of the local churches in the Circuit, including ministerial oversight, outreach opportunities and mission projects some or all of which may be unrelated to capital expenditure

(b) The support of a ministry team of presbyters, a part-time Circuit bursar a part time Circuit administrator and a part time Circuit Workers the numerical mix of which is determined by our staffing strategy which is reviewed annually.

(d) Supporting mission-oriented building projects, repairs and alterations.

Financial Plans

The Circuit’s Unrestricted Funds also includes the Circuit Model Trust Fund (CMTF). However, Connexional approval has to be sought to confirm any proposed use of these CMTF funds is in compliance with Standing Orders.

The Circuit Assessment is reviewed annually and provides substantially towards the overall Circuit costs. It is based on an agreed formula which seeks to ensure that each church pays a level of contribution which is proportionate to its peers. The Circuit Meeting is the final arbiter of the Assessment contribution from each church. Circuit Reserves may also be used to help meet these obligations; in particular to part fund lay personnel costs.

We make provision for our property maintenance programme by budgeting £28,000 (£3,500 per manse), as a contribution to a Provision Fund, to maintain our manses.

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THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT – TRUSTEES’ ANNUAL REPORT 2022

Subject to the constraints of our Reserves Policy (below) grants or loans from reserves are also available to support new and existing mission projects and may also be available for building repairs and projects provided the applicant church has a strong mission focus and can demonstrate financial viability. It is not always possible to predict when such grants might become necessary, as a church might suddenly need a short term loan to enable work to proceed expeditiously. Generally, we will contribute, up to 50% of project work. Such grants are subject to our Circuit Model Trust Fund policy (see below) and the availability of uncommitted funds held.

Local Church Council approved applications for Circuit funds will be made to the Circuit Leadership Team (CLT) for evaluation and support and then brought before the Circuit Meeting for approval or otherwise.

RESERVES POLICY

Introduction

The Circuit has a wide cross section of Funds some of which are unrestricted (including Designated Funds) and others are restricted.

The “Funds at a Glance” attached to this document is an integral part of our Reserves Policy and should be read in conjunction with it. As a general principle, we now quote our closing Fund balances on an uncommitted basis. That is to say that at the close of each financial year any known and agreed future commitments are provided for in full. Therefore, at any given time the level of uncommitted resources can be clearly seen

Unrestricted Funds

General and Designated Funds

The General Fund at £125,189 (excluding tangible assets, Designated Funds and loans to churches) represents about 3 months budgeted expenditure (net of income for CMTF grants). This is considered to be the absolute minimum and falls short of the Connexional recommendation of 6 months. However, it effectively caters for the default of all churches not paying their Assessment in the same quarter – the chances of this are considered highly unlikely. Therefore, we aim to maintain our General Reserve at this monthly factor. If General reserves fall below our target, we will seek approval from the Circuit Meeting to make up any shortfall from an increase in Assessments the following year.

Designated Funds are effectively sinking funds or provisions against future expenditure in key areas. We budget each year for the annual figure to be credited to each of these fundsr

Circuit Model Trust Fund (CMTF)

Our policy is to use this resource in accordance with Methodist Standing Orders. However, under local discretion our policy is to allocate a percentage of these funds for “Mission & Outreach Projects” (or more generally new growth initiatives). The percentage so allocated is reviewed on an annual basis and may be amended in the light of overall calls on the CMTF during the preceding year and/or future initiatives being planned. We allocate 70% to “Mission & Outreach Projects” and 30% to other potential calls on the funds. The total uncommitted funds stood at £25,611 as at 31 August 2022

Restricted Funds

Chapel Street Fund is restricted for use on Luton Town centre projects – the interest from the fund is available for general unrestricted use. We are using this fund to cover the costs to the Circuit of Ecumenical Church related Community Worker.

Lye Trust - is a permanent endowment legacy, the income on which is specifically for use as a Circuit Benevolent Fund. The interest of circa £1,000 p.a. is distributed (as and when required) for relief of the poor in the Circuit via the Benevolent Fund

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THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT – TRUSTEES’ ANNUAL REPORT 2022

Benevolent Fund – income sourced from the interest from the Lye Trust as above.

Circuit Music Fund – expendable endowment.

Circuit Drama Fund – restricted. Ex Luton Circuit Fund

Circuit Education & Youth Fund – restricted. Ex Luton Circuit Fund. (funded £500 p.a. from General Funds)

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THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT FUNDS AT A GLANCE (BALANCE SHEET) AS AT 31 AUGUST 2022

Fixed Assets				U	nrestricted Funds	nrestricted Funds				Total Unrestricted			Rest	Rest	ricted &	Endowment Funds	Endowment Funds	Endowment Funds	Endowment Funds		£ 1,493,131 350,000 42,014 Totals 2022
		Trust			Designated		Funds					Res	tricted Funds			Endowment Funds
	General	Circuit Model	Manses	Ministers	Training	Quins	Assm't EQ	Lay Salaries	Total Designated		Benev (Local)	Drama (Local)	Educn & Youth (Local)	Luton Road Church	Total Restricted	Chapel St Trust 18819	Lye Bequest for Poor Trust 3488	Lye Bequest Trust 5719	Circuit Music Fund Trust 16407	Total Endowment		*Totals 2021*
	£	£	£	£	£	£	£	£	£	£	£	£	£	£	£	£	£	£	£	£		£
										1,493,131 350,000 0
Circuit Manses & Equipment	1,493,131																					1,493,131
Investmentproperties	350,000																					350,000
Investments	0																39,383	2,631		42,013		44,830
*Totalfixed assets*	1,843,131									1,843,131							39,383	2,631		42,013	1,885,145	1,887,961
Current Assets																					26,486 19,000 13,933 398,172 11,661

Debtors	26,486									26,486												21,630
Loans bythe Circuit	19,000									19,000												30,000
Trustees for Methodist Church Purposes		19								19						7,729	4,950		1,235	13,914		13,920
Central Finance Board Deposits	175,992	71,422	92,716	3,651	22,860	(222)	9,870	12,000	140,875	388,289	5,339	818	3,571	154	9,883							412,747
Cash at Bank and in hand	11,661									11,661												8,988
*Total current assets*	233,139	71,441	92,716	3,651	22,860	(222)	9,870	12,000	140,875	445,456	5,339	818	3,571	154	9,883	7,729	4,950		1,235	13,914	469,252	487,284
																					107,950 76,205
Creditors(due in under 1year)	107,950									107,950												103,649
Grant instalments due in 2022-23		16,205	60,000						60,000	76,205												77,795
*Net current assets/liabilities*	125,189	55,236	32,716	3,651	22,860	(222)	9,870	12,000	80,875	261,300	5,339	818	3,571	154	9,883	7,729	4,950		1,235	13,914	285,097	305,840


*Total assets less current liabilities*	1,968,321	55,236	32,716	3,651	22,860	(222)	9,870	12,000	80,875	2,104,432	5,339	818	3,571	154	9,883	7,729	44,333	2,631	1,235	55,927	2,170,242	2,193,802
																					29,625
Creditors and Accruals including any loans (due after more than 1year)
Grant instalments due after 2022-23		29,625								29,625												38,330

*Net assets*	1,968,321	25,611	32,716	3,651	22,860	(222)	9,870	12,000	80,875	2,074,807	5,339	818	3,571	154	9,883	7,729	44,333	2,631	1,235	55,927	2,140,617	2,155,472
Funds of the Circuit																					1,968,321 25,611 80,875 *2,074,807* 9,883 55,927

General Fund(Unrestricted)	1,968,321
Circuit Model Trust Fund(Unrestricted)		25,611
Designated Funds(Unrestricted)			32,716	3,651	22,860	(222)	9,870	12,000	80,875
*Total Unrestricted Funds*										2,074,807												2,087,879
Restricted Funds											5,339	818	3,571	154	9,883							8,864
Endowment Funds																7,729	44,333	2,631	1,235	55,927		58,730
*Total Funds*	1,968,321	25,611	32,716	3,651	22,860	(222)	9,870	12,000	80,875	2,074,807	5,339	818	3,571	154	9,883	7,729	44,333	2,631	1,235	55,927	2,140,617	2,155,472
Liquid Funds
	125,189	25,611	32,716	3,651	22,860	(222)	9,870	12,000	80,875	231,675	5,339	818	3,571	154	9,883	7,729	4,950	(0)	1,235	13,914	255,472	267,510

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THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT – TRUSTEES’ ANNUAL REPORT 2022

SOUTH BEDFORDSHIRE METHODIST CIRCUIT

ANNUAL SUMMARY FINANCIAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022

Introduction

This has once again been a difficult year for our Circuit churches as many struggle to bring income levels back to near pre Covid levels. This manifests itself in both letting income and “offertory plate” income.

62% of the Circuit’s expenses relate to staffing costs with another 10% attributable to maintain mases. 19.5% goes to the District assessment. Therefore, there is little room for manoeuvre unless staffing numbers can be reduced.

Budget 2021/22

This was set with a gross expenditure of just under £400k with £375k being raised from churches by way of the Assessment. Setting the level each church paid for the year was challenging and required a re-work of our historic formula. Whilst not welcomed by all, an absolute minimum Assessment of £6k per church was set with a further £28k being apportioned relative to the reserves strength (in terms of months expenditure cover) of each church. This enabled us, in part, to call more on churches with higher time based reserves than those with lower.

Challenging as this was, the required Assessment was raised in full

Actual v Budget Performance (General Fund only)

An analysis is attached. Overall, we ended up £23k favourable to budget. A number of factors contributed to this. In particular the lack of budgeted voids in our rental income led to a surplus of £4.4k. Assessments appear to be £7.8k favourable but this is offset by the cost of employing one minister for an extra 0.25 fte to cover Olive Tree.

However, a budgeting error in assuming we would need to cover extra ministerial costs led to a further surplus.

In order to utilise the £23k budget surplus, £11k has been transferred to the Circuit Model Trust Fund (representing church loan repayments received) and £12k to the Circuit Lay workers Salary Reserve.

Circuit Model Trust Fund

We made grants to Farley Hill (£2k for kitchen refurbishment) and Toddington (£7.5k over 3 years towards the costs of continuing to employ a Mission Enabler).

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THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT – TRUSTEES’ ANNUAL REPORT 2022

Manses Fund (Designated)

From General Funds we budget to set aside £3.5k per manse p.a. to cover maintenance and repairs. This amounts to £28k for 8 Manses.

This year we have spent a considerable sum - £42k in total. Of this the main items are:

£25k spent on Friars Walk
£3k on Danvers Drive
£7k on Malzeard Road
£1k on Linnet Way
£3k on 46 Luton Road

Conclusion

Circuit finances remain in a stable position, but our General Reserves only cover about 3.5months of gross expenditure.

2022/23 will be a further challenge and whilst once again the necessary Assessment has been agreed, the rising fuel costs and general increase in the cost of living will put pressure on the ability of members to maintain their current level of giving to churches.

Also attached to this report is:

Statement of Financial Activities (SOFA) in abbreviated form

David J Hallworth Circuit Bursar

8 November 2022

Page 14 of 14

THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT FUNDS AT A GLANCE (SOFA) AS AT 31 AUGUST 2022

Name of Circuit: South Bedfordshire

Circuit No: 34/04

Statement of Financial Activities a Glance for the year ended 31 August 2022

		Unrestricted Funds	Restricted	& Endowment Funds
General	Circuit Model Trust	Designated Funds	Restricted Funds	Endowment Funds
		Manses Ministers Training Quins Assm't EQ Lay Salaries	Benev (Local) Drama (Local) Educn & Youth (Local) Luton Road Church	Chapel St Trust 18819 Lye Bequest for Poor Trust 3488 Lye Bequest Trust 5719 Circuit Music Fund Trust 16407	*Total* *2020-21*
£	£	£ £ £ £ £ £	£ £ £ £	£ £ £ £	£

					1,000
1,536	0			36 1,043 68 6	1,286
13,800					13,675

382,320					280,145

			2,768		74,651

*397,656*	0		*2,768*	36 *1,043* 68 6	*370,757*

*397,656*	0		*2,768*	36 *1,043* 68 6	*370,757*
14,100					25,876
411,756	0		2,768	36 1,043 68 6	*396,633*



	19,795		600		87,050
247,518		5,120			250,794
29,586		41,909 4,572	2,613		61,689
4,585	0			22 134 8 4	3,953
78,016					86,258
3,208		321			1,876
362,913	19,795	41,909 5,120 321 4,572	600 2,613	22 134 8 4	*491,620*

48,844	(19,795)	(41,909) (5,120) (321) (4,572)	(600) 154	14 909 60 2	*(94,988)*
				(2,640) (176)	6,971


48,844	(19,795)	(41,909) (5,120) (321) (4,572)	(600) 154	14 (1,731) (116) 2	*(88,016)*

(48,692)	11,000	28,000 3,400 3,500 3,363 (1,064)	965 500	(7) (905) (60)



152	(8,795)	(13,909) (1,720) 3,179 (1,209) (1,064)	365 500 154	7 (2,635) (176) 2	*(88,016)*

1,968,169	24,112	46,625 5,371 19,681 987 9,870 13,064	4,974 818 3,071	7,722 46,968 2,807 1,233	2,287,113
	(7,500)				(62,000)
	17,795				18,375

1,968,321	25,611	32,716 3,651 22,860 (222) 9,870 12,000	5,339 818 3,571 154	7,729 44,333 2,631 1,235	*2,155,472*

Page 1 of 1

THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT (Charity Registration No. 1134222)

FINANCIAL STATEMENTS

For the Year ending 31 August 2022

Page 1 of 29

Name of Circuit: South Bedfordshire

Circuit No: 34/04

Statement of Financial Activities (SOFA) for the year ended 31 August 2022

Unrestricted Funds	Restricted & Endowment Funds
General Circuit Model Trust Designated £ £ £	Restricted Endowment	*Total* *2020-21*
	£ £	£

		1,000
1,536 0	1,153	1,286
13,800		13,675

382,320		280,145

	2,768	74,651

*397,656* 0	*2,768* *1,153*	*370,757*

*397,656* 0	*2,768* *1,153*	*370,757*
14,100		25,876
411,756 0	2,768 1,153	*396,633*



19,795	600	87,050
247,518 5,120		250,794
29,586 46,481	2,613	61,689
4,585 0	167	3,953
78,016		86,258
3,208 321		1,876
362,913 19,795 51,922	3,213 167	*491,620*

48,844 (19,795) (51,922)	(446) 986	*(94,988)*
	(2,816)	6,971


48,844 (19,795) (51,922)	(446) (1,830)	*(88,016)*

(48,692) 11,000 37,199	1,465 (972)



152 (8,795) (14,723)	1,019 (2,802)	*(88,016)*

1,968,169 24,112 95,598	8,864 58,730	2,287,113
(7,500)		(62,000)
17,795		18,375

1,968,321 25,611 80,875	9,883 55,927	*2,155,472*

Page 2 of 29

Name of Circuit: South Bedfordshire

Circuit No: 34/04

Balance Sheet as at 31 August 2022

Fixed Assets Circuit Manses & Equipment BS1 Investmentproperties BS1 Investments BS2 *Totalfixed assets* Current Assets Debtors BS3 Loans bythe Circuit BS4 Trustees for Methodist Church Purposes BS2 Central Finance Board Deposits BS5 Cash at Bank and in hand BS5 *Total current assets* Creditors(due in under 1year) BS6 Grant instalments due in 2022-23 BS6a *Net current assets/liabilities* *Total assets less current liabilities* Creditors and Accruals including any loans (due after more than 1year) Grant instalments due after 2022-23 BS7,9 *Net assets* Funds of the Circuit General Fund(Unrestricted) BS8.1 Circuit Model Trust Fund(Unrestricted) BS8.2 Designated Funds(Unrestricted) BS8.3 *Total Unrestricted Funds* Restricted Funds BS9 Endowment Funds BS9 *Total Funds*	Unrestricted Funds	Unrestricted Funds	Unrestricted Funds	Restricted & Endowment Funds	Restricted & Endowment Funds
	General	Circuit Model Trust	Designated £	Restricted	Endowmen t	Totals 2022	*Totals* *2021*
	£	£		£	£	£	£

	1,493,131					1,493,131	1,493,131
	350,000					350,000	350,000
	0				42,013	42,014	44,830
	1,843,131				42,013	1,885,145	1,887,961


	26,486			2,768		29,254	21,630
	19,000					19,000	30,000
		19			13,914	13,933	13,920
	175,992	71,422	140,875	7,115		395,404	412,747
	11,661					11,661	8,988
	233,139	71,441	140,875	9,883	13,914	469,252	487,284

	107,950					107,950	103,649
		16,205	60,000			76,205	77,795
	125,189	55,236	80,875	9,883	13,914	285,097	305,840


	1,968,321	55,236	80,875	9,883	55,927	2,170,242	2,193,802


		29,625				29,625	38,330

	1,968,321	25,611	80,875	9,883	55,927	2,140,617	2,155,472


General Fund(Unrestricted)	1,968,321
Circuit Model Trust Fund(Unrestricted)		25,611
Designated Funds(Unrestricted)			80,875
*Total Unrestricted Funds*						2,074,807	2,087,879
Restricted Funds				9,883		9,883	8,864
Endowment Funds					55,927	55,927	58,730
*Total Funds*	1,968,321	25,611	80,875	9,883	55,927	2,140,617	2,155,472

Page 3 of 29

THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT

Notes to the accounts for the year ending 31 August 2022

1 & 2 Policies and Terms

Basis of accounting and accounting policies

i Accounting standard

The financial statements have been prepared in accordance with 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), and the Charities Act 2011

ii Public benefit entity

The South Bedfordshire Methodist Circuit meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s) below.

iii Basis

These accounts have been prepared on the basis of historical cost except that investments are shown at their market value at the end of the year. The accruals basis has been used and trustees present accounts that show a true and fair view of the Circuit’s financial position and activities.

iv 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 £Sterling, rounded to the nearest pound.

This clause is intentionally blank

vi Going concern

Based on the monetary assets and human resources available at 31 August 2022, the trustees believe that the Circuit is a going concern.

vii Consolidation

The Circuit has denominational regulatory oversight in respect of the work of the Churches within the Circuit but has no legal or operational control of those Churches and their governing bodies except in extreme circumstances. For this reason, the financial statements of Churches within the Circuit are not consolidated into these financial statements.

The financial statements have been prepared in accordance with Accounting and Reporting by Ch

Page 4 of 29

THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT

Notes to the accounts for the year ending 31 August 2022

viii

Income recognition

Income is brought into account when there is entitlement and the amount is reliably measurable once it is more 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 two matters:

the collection from Churches and payment over of their contributions to various Funds controlled and administered by The Methodist Church – “Connexional Funds”

the administration (application, collection and disbursement) of grants requested by Churches within the Circuit from, but not limited to, the District and Connexion

In all these matters the transactions are not reflected in the SOFA because they are the income of either the Connexion or Churches as appropriate. Instead the transactions are disclosed in the Notes to the Accounts as required by SORP(FRS102), module 19.12.

In accordance with the Charities SORP (FRS 102), the time of volunteers is not recognised. Further information on this matter is provided in the Trustees’ Annual Report. If goods are donated, a value will be shown in the SOFA or Notes where the value is considered material.

ix Grants (Received)

Grants received from external sources (including Connexional and/or District grants) are shown as income. Where an application to TMCP is made (and approved) to use monies held in the Circuit Model Trust Fund and/or Restricted/Endowment Funds for a specific Circuit project, the funds so approved are, where relevant, shown as transfers between funds. More details are provided in Note 9

x Expenditure

This is recognised when a liability is incurred, or a constructive obligation arises, where the amount is reliably measurable and it is considered more likely than not that there will be an outflow of economic benefit

xi Grants (Given)

Grants made by the Circuit from its own funds are recognised in full at the time of agreement to make a grant without performance conditions or as and when the Circuit accepts that there is a legal or operational obligation to make the payment if it is subject to performance conditions. When the grant to be accrued is recurrent over more than one year the balance payable in future years, discounted to net present value where the difference is material, is treated as a provision for future commitments in the balance sheet against the appropriate fund, the provision being released in future years in accordance with the originally agreed terms. In cases where the grant has been charged to one fund but for ease of payment has been transferred to another fund any future payment provision is applied to the fund from which the grant will ultimately be paid.

Page 5 of 29

THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT Notes to the accounts for the year ending 31 August 2022

xii

VAT

Since the Circuit is not VAT registered, all input VAT is charged with the expenses to which it refers.

xiii Tangible fixed assets

These are capitalised if they can be used for more than one year, and individually cost at least £250.

The freehold and/or long leasehold residential property is shown in the accounts at deemed cost representing each property’s gross carrying value as at 1 September 2015, being that property’s insurance reinstatement value resulting from a professional valuation undertaken by Trudgill & Co in 2011/12 and subsequently adjusted up to and including 31 August 2014 or, if acquired after that date, at its insurance reinstatement value at the date of acquisition. No depreciation is provided because the trustees consider the current residual value of the property in its present condition to be not less than its historical cost and, in the absence of any evidence of impairment, any depreciation provision for the buildings component of the property would be immaterial.

From time to time the Circuit may be required to assume responsibility for Church premises following closure and cessation of worship. This results in the Circuit becoming Managing Trustees for the property. At that time the property is recognised as an asset at its anticipated net sale price as determined by a professional valuation and after taking into consideration the levy to be charged by the Connexion. Any expenditure on such assets, if held for reinvestment of the proceeds, as the trustees determine, that is likely to enhance sale value is capitalised at the time the expenditure is incurred. Where the proceeds are intended to be spent on activities, the property is included in current assets at the lower of cost and realisable value. The Circuit has made use of the deemed cost option on transitioning to FRS102, as outlined above.

xiv(a) Monetary Investments

The Circuit’s investments are in monetary assets classified as basic financial instruments under FRS102 and are held by the Trustees for Methodist Church Purposes (TMCP) as custodian trustees. The valuations, at market value, are those provided by TMCP. The unrealised gains arising on investments at the end of the year are shown in the SOFA and in Note 15 below

xiv(b) Investment Property

From time to time the Circuit may hold residential property (manses) which is surplus to its normal staffing requirements. Where this is the case and it is anticipated that the property is unlikely to be used as a manse within a period of 2 years, the property is classified as Investment Property (whether let out or not) and if let, it is so at market rates unless there is a compelling reason not to do so in furtherance of the Circuit’s charitable objectives. Any such cases are specified in Note BS1 below. Such properties are valued at fair open market value after reference to local professional estate agents and valuers.

Page 6 of 29

THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT

Notes to the accounts for the year ending 31 August 2022

xv Receivables and Payables; Bank and Cash (Basic Financial Instruments)

Debtors are stated at the amounts owed to the Circuit or prepaid. Creditors are initially recognised at settlement amount after any trade discounts, where normal credit terms apply, or

amount advanced to the Circuit. Subsequently creditors that are current liabilities are measured at the cash or other consideration expected to be paid. The liquid funds of bank balances and deposit fund balances are shown at their realisable values.

xvi Loans as Basic Financial Instruments

Where concessionary loans ( i.e. free of interest) are made to [or received by] the Circuit to further its charitable purposes, and are repayable after more than one year, they are initially recognised at the amount paid [or received], with the carrying value adjusted in subsequent years to reflect repayments and any accrued interest, adjusted for any impairment, if necessary.

Where there is objective evidence of impairment, an immediate impairment loss is recognised in the Statement of Financial Activities. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised, are recognised immediately in the Statement of Financial Activities.

Where loans require the calculation of a discounted cash flow valuation, this will be so marked.

xvii Methodist Connexional Funds

The Circuit acts as agent for Methodist Connexional Funds (Connexional Funds) in the collection from Churches and payment over of their contributions and ad hoc collections for various Funds controlled and administered by The Methodist Church – “Connexional Funds

xviii Funds

The trustees have adopted a policy for all unrestricted reserves which can be found in the main section of the Trustees Annual Report.

xvix Endowment funds

Where the Circuit holds money that may not be spent and must be retained (as capital) to generate an income the money or assets to be retained are classified as an Endowment Fund. The capital will be shown in the balance sheet in the column for endowment funds. The income may be restricted or unrestricted depending upon the terms of the endowment.

xx Ministers' manse costs

The Circuit is required to provide accommodation for each minister in the Circuit and their families and this is seen as a benefit to the Circuit. Ministers are expected to occupy the manse provided for them. The Circuit bears the cost of repairs, maintenance, buildings insurance, Council Tax and water charges. These figures are not separately disclosed as benefits-in-kind for ministers as HMRC does not seek to tax these receipts in the hands of ministers.

Page 7 of 29

THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT

Notes to the accounts for the year ending 31 August 2022

2 Glossary of terms

CFB: Central Finance Board of the Methodist Church manages a Common Deposit Fund and a series of pooled investment funds for Methodist entities in Great Britain and provides investment advice to those entities

Church: a group of members from fewer than 10 to more than 300 Circuit: a group of Methodist Churches near each other, typically between 10 and 30 Circuit Meeting: The trustees of the Circuit, most of whom are appointed by their local Church and others by virtue of a role they undertake for the Circuit and/or their local Church

CLT (Circuit Leadership Team): A group (comprising mostly, but not exclusively) of Circuit trustees responsible for the day to day administration and policy formulation of the Circuit. Generally the CLT comprises of the Presbyters stationed within the Circuit, the Circuit Stewards and Circuit Bursar (who is not a trustee)

CMTF: Circuit Model Trust Fund

Connexion: The Methodist Church in GB which includes the Head Office at Methodist Church House, all Methodist Districts, Circuits and Churches in Great Britain

Connexional Funds: The Designated and/or Restricted Funds held and administered by the Connexion in furtherance of its charitable and mission objectives.

District: a group of contiguous Circuits, usually between 15 and 30 DAF: District Advance Fund

FRS: Financial Reporting Standard HMRC: Her Majesty's Revenue and Customs

LAY EMPLOYEES: Non presbyteral staff employed on either a full or part time basis and on formal written contractual terms.

MMPS: Methodist Ministers’ Pension Scheme

PASLEMC: Pensions and Assurance Scheme for Lay Employees of the Methodist Church

Page 8 of 29

THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT Notes to the accounts for the year ending 31 August 2022

3.1 Comparative SOFA forming part of previous year’s accounts

Income and Endowments 1 Donations and legacies 2 Income from Monetary Investments 3 Income from Investment Property 4 Income from charitable activities 5 Assessments on Churches 6 Captial Receipts 7 Grants 8 Other charitable activities 9 *Total from charitable activities* 10 Other charitable income 11 *Total charitable income* 12 Other income 13 Total income and endowments Expenditure Expenditure on charitable activities 21 Grants and donations 22 Salaries and associated costs 23 Property 24 Office expenses 25 District Assessment & Levy 26 Other outgoings 27 Total charitable expenditure 31 Net Income before investment gains/losses 32 Net gains/(losses) on Monetary Investments 33 Net gains/(losses) on Property Disposals/Revaluations 34 Net incoming/(outgoing) resources before transfers 35 Transfers between funds 36 Reclassification of funds 37 Other gains/(losses)	Unrestricted Funds	Restricted & Endowment Funds	Total 2020-21
	General Circuit Model Trust Designated	Restricted Endowment
	£ £ £	£ £	£ 1,000 1,286 13,675 280,145 74,651

	1,000
	447 93	745
	13,675

	280,145

	72,875 1,776

	*368,142* 93 *1,776*	*745*	*370,757*

	*368,142* 93 *1,776*	*745*	*370,757*
	25,876		25,876
	394,018 93 1,776	745	396,633
			87,050 250,794 61,689 3,953 86,258 1,876


	85,600	450 1,000
	243,728 7,066
	40,718 20,971
	3,717 132	104
	84,608 1,650
	1,876
	374,647 87,382 28,037	450 1,104	491,620

	19,371 (87,289) (26,261)	(450) (358)	(94,988)
	18	6,953	6,971


	19,371 (87,270) (26,261)	(450) 6,595	(88,016)

	(51,839) 24,000 27,349	1,129 (638)



38 Net movement in funds	(32,468) (63,270) 1,088	679 5,956	(88,016)
39 Total funds brought forward 40 _Less:_Future instalments of grant 41 Grant instalments provisions released			2,287,113 (62,000) 18,375
	2,000,637 72,007 154,511	8,185 51,773
	(2,000) (60,000)
	17,375	1,000

50 Total funds carried forward	1,968,169 24,112 95,598	8,864 58,730	2,155,472

Page 9 of 29

THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT

Notes to the accounts for the year ending 31 August 2022

3.2 Balance Sheet as at 31 August 2021

3.2 Balance Sheet as at 31 August 2021
Fixed Assets	Unrestricted Funds			Restricted & Endowment Funds		Totals 2021
	General	Circuit Model Trust	Designated	Restricted	Endowmen t
	£	£	£	£	£	£

Circuit Manses & Equipment	1,493,131					1,493,131
Investmentproperties	350,000					350,000
Investments	0				44,830	44,830
*Totalfixed assets*	1,843,131				44,830	1,887,961
Current Assets

Debtors	21,630					21,630
Loans bythe Circuit	30,000					30,000
Trustees for Methodist Church Purposes		20			13,900	13,920
Central Finance Board Deposits	168,069	80,217	155,598	8,864		412,747
Cash at Bank and in hand	8,988					8,988
*Total current assets*	228,686	80,237	155,598	8,864	13,900	487,284

Creditors(due in under 1year)	103,649					103,649
Grant instalments due in 2020-21		17,795	60,000			77,795
*Net current assets/liabilities*	125,037	62,442	95,598	8,864	13,900	305,840


*Total assets less current liabilities*	1,968,169	62,442	95,598	8,864	58,730	2,193,802

Creditors and Accruals including any loans (due after more than 1year)
Grant instalments due after 2020-21		38,330				38,330

*Net assets*	1,968,169	24,112	95,598	8,864	58,730	2,155,472
Funds of the Circuit

General Fund(Unrestricted)	1,968,169
Circuit Model Trust Fund(Unrestricted)		24,112
Designated Funds(Unrestricted)			95,598
*Total Unrestricted Funds*						2,087,879
Restricted Funds				8,864		8,864
Endowment Funds					58,730	58,730
*Total Funds*	1,968,169	24,112	95,598	8,864	58,730	2,155,472

Page 10 of 29

THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT Notes to the accounts for the year ending 31 August 2022

Note 4 Income from Investment Property

The trustees have determined that the property listed below is unlikely to be returned to use as manse in the foreseeable future and have therefore classified the same as an Investment Property. Letting income is shown gross of fees and commissions.

		General	Total	2021
Letting Income:
18 Clarence Road		13,800	13,800	13,675
	Totals	13,800	13,800	*13,675*

Note 5 Assessments on Churches

The Circuit comprises of 20 [Luton Road closed during the year] (21) churches and each is assessed for a contribution to meet the overall net costs of the Circuit. In making it's Assessment budgeted income from investment income (including property letting) and confirmed external grants is taken into account. The Circuit aims to cover all it's net core costs from the Assessment.

An Assessment on Churches is annually determined by the Circuit using a formulaic method which takes into account the relative number of members in each church and its relative income (after deduction of certain actual and notional expenses). Assessments on churches are quarterly in advance and are treated as pre-payments on a receivable basis. If any church has not paid its assessment by the due date the sum in question is also treated as a debtor. Such cases are detailed in Notes BS3 and BS6

Church Aley Green Barton Beech Hill Dagnall Eaton Bray Edlesborough Farley Hill Gravenhurst Harlington High Town Kensworth Leagrave High St Luton Road Mount Pleasant Oakdale St Johns St Margarets Strathmore Ave The Square Toddington Trinity Wigmore Total	General CMTF Desig Restricted Endow Total 2021 11,948 11,948 8,229 7,716 7,716 4,011 16,924 16,924 9,843 840 12,112 12,112 8,493 6,752 6,752 3,314 10,144 10,144 8,415 7,028 7,028 3,600 19,216 19,216 12,702 21,340 21,340 13,017 7,476 7,476 4,485 31,872 31,872 26,703 3,036 9,856 9,856 5,094 16,780 16,780 12,216 27,780 27,780 22,920 25,568 25,568 17,772 13,632 13,632 5,886 56,060 56,060 43,839 16,140 16,140 13,194 57,844 57,844 47,376 6,132 6,132 5,160
	382,320 382,320 *280,145*

Church
Aley Green
Barton
Beech Hill
Dagnall
Eaton Bray
Edlesborough
Farley Hill
Gravenhurst
Harlington
High Town
Kensworth
Leagrave High St
Luton Road
Mount Pleasant
Oakdale
St Johns
St Margarets
Strathmore Ave
The Square
Toddington
Trinity
Wigmore
**Total **

General
CMTF
Desig
Restricted
Endow
Total
2021
11,948
11,948
8,229
7,716
7,716
4,011
16,924
16,924
9,843
840
12,112
12,112
8,493
6,752
6,752
3,314
10,144
10,144
8,415
7,028
7,028
3,600
19,216
19,216
12,702
21,340
21,340
13,017
7,476
7,476
4,485
31,872
31,872
26,703
3,036
9,856
9,856
5,094
16,780
16,780
12,216
27,780
27,780
22,920
25,568
25,568
17,772
13,632
13,632
5,886
56,060
56,060
43,839
16,140
16,140
13,194
57,844
57,844
47,376
6,132
6,132
5,160

382,320
382,320 280,145

Page 11 of 29

THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT

Notes to the accounts for the year ending 31 August 2022

Note 6 Capital Receipts

There were no Capital Receipts (2020/21- £Nil)

Gross sale proceeds CPF Levy on Property Sales Selling Agents Fees Legal Fees Surveyors Fee GPF Reclaimed Grants Totals	General CMTF Desig Restricted Endow Total 2021

Note 7 Grants Receivable

Connexion District Model Trust Fund Other Grants CMTF re Covid Assess Relief	General CMTF Desig Restricted Endow Total 2021 6,426 68,225 2,768 2,768
Luton Road Church Closing Bal

	2,768 2,768 *74,651*

Note 8 Other Income

Note 8 Other Income
Circuit Quiz Printing for Churches Rent arrears paid Balances from closed churches Rental Income Danvers Drive Rental Income Bolingbroke Road	General CMTF Desig Restricted Endow Total 2021 1,286 10,190 14,100 14,100 14,400
	14,100 14,100 *25,876*

Page 12 of 29

Notes to the accounts for the year ending 31 August 2022

THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT

Note 9 Grants & Donations

Grants and donations as listed below were agreed and/or made during the year. Where a grant has been made from the Circuit Model Trust Fund, Restricted or Endowment Funds and the grant monies are for use within the Circuit they are treated as a transfer between Funds with the purpose detailed in Note 16. The tables below (one for each Fund type) detail the new grants agreed and paid over this year, this year's instalment of grants agreed in prior years and the future instalments of grants to be paid. More information can also be found in Notes BS6a, BS7, BS8 and BS9 below

The support costs for grant-funding to third parties are insignificant and are not separately disclosed

This Year New	General
Agreed Paid External Paid Internal Tfr Carried forward	Unpaid brt fwd Paid this year Ext Paid Internal Tfr Carried forward	Total Paid Ext Total Paid Int Tfr	Grand Total












This Year New	Circuit Model Trust
Agreed Paid External Paid Internal Tfr Carried forward	Unpaid brt fwd Paid this year Ext Paid Internal Tfr Carried forward	Total Paid Ext Total Paid Int Tfr (2,000) (2,000) (2,000) (13,795) (19,795)	Grand Total


7,500 7,500 2,000 (2,000)	2,000 (2,000) 7,500 2,000 (2,000) 52,125 (13,795) 38,330		(2,000) (2,000) (2,000) (13,795)
	56,125 (17,795) 45,830		(19,795)

This Year New	Designated
Agreed Paid External Paid Internal Tfr Carried forward	Unpaid brt fwd Paid this year Ext Paid Internal Tfr Carried forward 60,000 60,000	Total Paid Ext Total Paid Int Tfr	Grand Total
	60,000 60,000

This Year New	Restricted
Agreed Paid External Paid Internal Tfr Carried forward 600 (600)	Unpaid brt fwd Paid this year Ext Paid Internal Tfr Carried forward	Total Paid Ext Total Paid Int Tfr (600) (600)	Grand Total (600)
			(600)

This Year New	Endowment
Agreed Paid External Paid Internal Tfr Carried forward	Unpaid brt fwd Paid this year Ext Paid Internal Tfr Carried forward	Total Paid Ext Total Paid Int Tfr	Grand Total

Page 13 of 29

THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT Notes to the accounts for the year ending 31 August 2022

Note 10 Stipends and Salaries and Associated Costs

Stipends

Stipends were paid to 6 Presbyters [5.49 fte] (2020-21 6 [5.2 fte]) and were as follows

National Insurance Contributions Pension Fund Contributions Stipends Sundry Expenses & PC Allowances Telephone Travelling Computers in Ministry Removal, Stationing & Relocation Costs	Full Time (5) Part Time (1) General CMTF Desig (Ministers) Restricted Endow Total 2021 12,513 1,507 14,021 14,021 12,623 34,733 5,210 39,943 39,943 37,694 131,702 19,368 151,070 151,070 143,504 44 44 44 1,020 3,173 482 3,655 3,655 3,381 4,203 550 4,753 4,753 1,517 850 176 1,026 1,026 5,120 5,120 7,066
	187,219 27,293 214,512 5,120 219,632 *206,805*

The Circuit employs lay staff involved in both Administration and Missionwork. The costs of these staff are shown below in their separate categories.

Administration Staff	Bursar Admin PA 199 10,343 10,415 Part Time	General CMTF Desig Restricted Endow Total 2021 199 199 186 20,758 20,758 17,907
Nat Ins Salary & Allowances Travel Other Expenses Contracted Hours (pw)
	10,542 10,415	20,957 20,957 *18,093*
	15 15 n/a Part Time Circuit Workers x3 16 9,286 806 960	General CMTF Desig Restricted Endow Total 2021 512 16 16 433 9,286 9,286 22,302 806 806 261 960 960 1,440
Mission Staff
Nat Ins Pension Conts Salary Sundry Expenses Telephone Travel IT Allowances Contracted Hours (pw) Apprenticeship Levy
	11,068	11,068 11,068 *24,949*
		982 982 948
		247,518 5,120 252,638 *250,794*

No employees received employee benefits of more than £60,000. There is no accrual for holiday pay as it is immaterial; the holiday year ends on 31 August. All staff are paid at or above the Living Wage, as directed by Methodist Conference.

Pensions

Most ordained presbyters and deacons are members of the Methodist Ministers’ Pension Scheme (MMPS). This is a defined benefit scheme. The Supreme Court held in 2014 that Methodist ministers (which term includes presbyters and deacons) are not employees of the Church. For simplicity, however, when dealing with National Insurance Contributions and pension contributions, the terms ‘employer’ and ‘employee’ are used as they would be in an employing body.

On the other hand lay employees are contractually employees and have the option of joining a pension scheme which the Circuit has arranged with The Pensions Trust. This is a defined benefit scheme and the Circuit contributes as employer to this scheme.

The Connexion accounts for both pension schemes and shows the figures in the annual Methodist Church in Great Britain accounts. The MMPS is in deficit but a plan for removal of the deficit has been proposed and is being implemented.

Page 14 of 29

Notes to the accounts for the year ending 31 August 2022

THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT

Note 10a Cost of Superintendent, Presbyters and Trustees

The Superintendent of the Circuit, the other Presbyters and the remaining members of the CLT are considered as Key Management Personnel. The Superintendent chairs meetings of the CLT and Circuit Meetings. The members of the Circuit Meeting are the trustees of the Circuit. The stipends, employer’s NIC and employer’s pension contributions and other expenses of the Presbyters of the Circuit are paid by the Circuit.

The manses are provided by the Circuit and the Circuit maintains the property. The value of the Council Tax and water charges paid by the Circuit is not disclosed here as HMRC does not regard this as a benefit-in-kind in the hands of the minister.

Each Presbyter is entitled to a 3 month sabbatical every 5 years and the expenses incurred by the Presbyter are met by the Connexion with the Circuit continuing to pay the stipend. During the year there have been 0 sabbaticals. The Circuit does not accrue for holiday pay cover as the remaining staff cover the holidays as needed and without extra pay. Had additional cover been required the cost of this is estimated at £9,355 (being one quarter of a single standard stipend plus National Insurance, Pension and other normally incurred expenses

		2021
	£	£
Stipends of Presbyters[6 actual (5.49 fte)]	151,070	143,504
Employer's National Insurance contributions	14,021	12,623
Employer's pension contributions to a defined benefit pension scheme	39,943	37,694
Total cost	205,034	*193,820*

Payments to trustees

The Circuit has a published Expenses Policy which can be found on its website www.southbedsmethodist.org.uk/ It is generally not Circuit policy to reimburse non Presbyteral members of the CLT, Circuit Meeting and others involved in the administration of Circuit affairs for expenditure properly incurred in carrying out their duties. The Presbyters of the Circuit undertake the primary executive roles within the Circuit. Apart from the [6] Presbyters, Circuit Bursar, Administrator and Circuit Lay Workers no member of the Circuit Meeting or CLT was in receipt of any payment for work undertaken on behalf of the Circuit, although certain travelling, entertaining and administration costs were reimbursed in relation to specific projects.

Travel and entertaining expenses have been reimbursed to 0 (2020-21: nil) non-Presbyteral trustees (members of the CLT) who, in aggregate, have received the cost of travel incurred in attending meetings of the CLT and/or other related commitments and this amounted to £Nil (2020-21: £nil). The travel costs of Presbyters who attended CLT and Circuit meetings is included within their overall travel expenses (detailed in Note 6) and is not separately determined.

Page 15 of 29

THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT

Notes to the accounts for the year ending 31 August 2022

Note 11 Property Expenses

The Circuit is Managing Trustee for 7 manses (2020-21 -7 ) and 1 (20120-21 - 1) investment properties. 5 manses are occupied by ministers stationed in the Circuit. The investment property (18 Clarence Road) was let for all of the year on an Assured Shorthold Tenancy. The property at 44a Bolingbroke Road is let on an Assured Shorthold Tenancy. With the exception of the let properties, the Circuit is responsible for the payment of Council Tax, Utilities, Water charges and Insurance.

The cost of ongoing maintenance and improvements to all properties is funded through a Designated "Manses" Fund and a transfer of £3,500 p.a. per manse is made from the General Fund. The level of transfer is reviewed by the trustees each year.

Expenditure on Manses & Investment (Inv) Properties

Manse Unallocated 10 Danvers Drive 18 Clarence Road 18 Malzeard Road 44A Bolingbroke Road 46 Luton Road 5 Kingsley Road 6 Friars Walk 6 Linnet Way Totals Letting Expenses 18 Clarence Road 10 Danvers Drive 44a Bolingbroke Road Totals Other Property Expenses Circuit Office Rent Quinquennial Reports Closed Chapels Unoccupied Manses Manse Rental (Temp) Selling Fees Totals	Council Tax Insurance Maint Contracts Water Supply 4,135 3,135 297 415 2,414 417 202	General CMTF Desig (Manses) Restricted Endow Sub Total Repairs Maint Improve Total 2021 4,135 4,135 4,480 3,432 3,337 6,769 5,168 415 607 1,022 1,693 3,033 6,744 9,777 10,201 381 234 615 785 3,341 3,285 6,626 3,872 2,491 442 2,933 5,203 3,842 26,338 30,180 4,492 4,108 922 5,030 3,843
	381
	2,547 318 476 1,974 353 164 3,135 380 326 2,623 405 1,080
	15,828 2,967 4,135 2,248	25,178 41,909 67,088 *39,736*
	Agents Other Insurance 2,081 1,692 3,773	General CMTF Desig Restricted Endow Total 2021 2,081 2,081 1,887 1,230 1,692 1,692 1,728
		3,773 3,773 *4,845*
	Rent Utilities Others 500 135	General CMTF Desig (Quinns) Restricted Endow Total 2,021 500 500 600 4,572 4,572 6,012 2,613 2,613 135 135 38 *10,458*
	635	635 4,572 2,613 7,820 *17,108*

Property Totals		29,586 46,481 2,613 78,681 *61,689*

Page 16 of 29

THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT

Notes to the accounts for the year ending 31 August 2022

Note 12 Office & Administration costs

District & Conference Minutes Entertaining Ink &Toner Bank Charges Independent Examiner's Fee Office Telephone & Broadband Other Admin Costs Stationery, Copying, Postage Travelling Expenses - Circuit Stewards Website TMCP Admin/Investment Management Fees Depreciation on Office Equipment Insurance (General) Totals	General CMTF Desig Restricted Endow Total 2021 466 466 478 436 436 524 450 450 450 907 907 928 1,759 1,759 480 104 104 231 243 243 243 167 167 236 0 0 163 220 220 220
	4,585 0 167 4,753 *3,953*

Note 13 District Assessment & Levy

The District Assessment is calculated relative to the proportion of church members and staffing (Presbyters and Mission staff only) of all Circuits in the Beds, Herts & Essex District. 50% of the overall cost is calculated using relative membership proportions and 50% using relative staffing proportions.

The Levy is calculated on a sliding scale percentage of the Circuit's CMTF account balance as at 31 August the previous accounting year.

District Expenses Methodist Church Fund (MCF) Levy on CMTF Funds	General CMTF Desig Restricted Endow Total 2021 15,812 15,812 18,612 62,204 62,204 65,996 1,650
	78,016 78,016 *86,258*
	General CMTF Desig Restricted Endow Total 2021 1,715 1,715 274 692 931 931 982 (72) 320 320 522 522 40 40
Note 14 Other Outgoings
Preaching & Worship: Local Preachers & Lay Pastoral Expenses Plan & Directory Preaching Fees & Travel Resources Zoom Licences Other Expenses: Training Courses/Events Mission Events Miscellaneous Totals
	3,208 320 3,528 *1,876*

Page 17 of 29

Notes to the accounts for the year ending 31 August 2022

THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT

Note 15 Investment Management

During the year the Circuit paid TMCP, the custodians of the Circuit’s investments (Circuit Model Trust Fund, Restricted and Endowment Funds) management charges based on 0.2% of the value of the individual funds at the beginning of the year. [None of the individual amounts is considered material but are listed in Note12 for information.]

Realised and Unrealised gains in the invested funds are listed below . More information can be found in Note BS9.

	General CMTF Desig Restricted Endow Total 2021 (2,640) (2,640) 6,518 (176) (176) 435 18
Chapel St Trust 18819 Lye Bequest for Poor Trust 3488 Lye Bequest Trust 5719 Circuit Music Fund Trust 16407
Benev (Local) Drama (Local) Educn & Youth (Local)
Circuit Model Trust Fund
Totals
	(2,816) (2,816) *6,971*

Note 15a Property Disposals/Revaluations

The net gains or losses are detailed below.

Details Carrying Sale Reval Gain (Loss) 2021

Page 18 of 29

THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT

Notes to the accounts for the year ending 31 August 2022

Note 16 Transfers between Funds

The transfer between funds shown on the SOFA represents:

Expenditure and/or grants that had been agreed out of one fund but paid out of another fund
Investment income (net of charges) from Restricted/Endowment Funds which under the terms of the Funds may be used within Unrestricted Funds
Sums that were transferred from one fund to another under the direction of the trustees.

Manse Fund Ministers' Fund Training Fund Quinquennial Fund Investment Income Internal Grants (Ecumenical Community Worker) Release of Internal provisions (High Town Organ) Education & Youth Fund Benevolent Investment Income Assessment Equalisation Fund Loan Repayments CMTF Grants and Loans Chapel Street Circuit Worker Totals	General CMTF Desig Restricted Endow Check (28,000) 28,000 (3,400) 3,400 (3,500) 3,500 (3,363) 3,363 (500) 500 965 (965) (11,000) 11,000 7 (7) 1,064 (1,064)
	(48,692) 11,000 37,199 1,465 (972)

Note 17 Reclassification of Funds

Any fund whose classification has changed (e.g. Restricted to Unrestricted or vice versa) at the direction of the Circuit trustees or Custodian trustees is listed below.

Circuit property is always carried in the General Fund but upon sale the net proceeds are processed through the Circuit Model Trust Fund. This requires an adjustment and any such sales during the year are reflected below at the gross sale price

Details [Insert details of fund to be reclassified] [Insert details of fund to be reclassified - contra] Totals	General CMTF Desig Restricted Endow Total 2021

	General CMTF Desig Restricted Endow Total 2021
Note 18 Other Gains or Loses

Are tabulated below
Details Totals

Page 19 of 29

THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT

Notes to the accounts for the year ending 31 August 2022

Note BS1 Manses & Other Property

Buildings comprise of 7 (7 - 2021) manses located in Luton, Dunstable, Toddington and Leighton Buzzard .

Investment Properties are 1 manse ( 2021 - 1 at 18 Clarence Road) at 18 Clarence Road.

Office equipment consists of Desktop/Laptop/Printers/Duplicators.

1.1 Cost or valuation

Balance brought forward Additions in the year Revaluations (see Note 15a) _Less:_Disposals in the year Transfers between categories Balance carried forward	Investment Properties £ 350,000 350,000 350,000 350,000	Land Buildings Plant, machinery and motor vehicles Fixtures, fittings and equip't Assets under Construction Total
		£ £ £ £ £
		1,493,131 5,707 1,498,838




		1,493,131 5,707 1,498,838
		N/A N/A SL SL 3 YEARS
1.2 Accumulated depreciation and impairment provisions
Basis Rate Balance brought forward Depreciation charge for year Impairment provisions Revaluations Disposals Transfers Balance carried forward
		5,707 5,707





		5,707 5,707

1.3 Net book value
Brought forward Carried forward		1,493,131 1,493,131
		1,493,131 1,493,131

Schedule Of Manses, Investment Property & Churches Closed for Worship

Type 10 Danvers Drive manse 6 Linnet Way manse 18 Malzeard Road manse 44A Bolingbroke Road manse 46 Luton Road manse 5 Kingsley Road manse 18 Clarence Road investment 6 Friars Walk manse Property	Value
	232,017
	232,000
	245,174
	182,336
	178,215
	204,999

	218,390

	*1,493,131*

Page 20 of 29

THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT Notes to the accounts for the year ending 31 August 2022

Note BS2 Investment Assets (and Trustees for Methodist Church Purposes (TMCP)

The funds that support the Circuit Model Trust Fund and the Circuit's other funds (as listed below) are held by TMCP in Trustees Interest and/or ManagedEquity Funds on which interest and dividends are credited to the accounts each month/quarter. These are regarded as medium and long term investments.

TMCP is the legal owner and custodian trustee of all Methodist model trust property, including legacies, endowments and accumulated funds. Trust property is held for and on behalf of local managing trustees who are responsible for the day to day management of trust property. TMCP ensure that, through providing guidance and acting under their direction, the managing trustees comply with charity law and Methodist law and policy as determined by the Methodist Conference.

	Price (£) 5.25100 n/a	Price (£) 5.25100 n/a
2C100 - CFB Managed Mixed Fund 2C120 - CFB Managed Equity Fund 2C122 CFB Managed Fixed Int Fund 2C110 - Trustees Interest Fund

	CMTF Trust 10279	Chapel St Trust 18819 Lye Bequest Trust 3488 Lye Bequest Trust 5719 Music Fund Trust 16407 Total	Grand Total £ 8,001	2021
	£	£ £ £ £
2C100 - No Units 2C120 - No Units 2C122 - No Units		7,500 501		8,001

2C100 2C120 2C122 2C110		39,383 2,631 42,013	42,013	44,830
	19	*39,383* *2,631* *42,013* 7,729 4,950 1,235 13,914	*42,013* 13,933	44,830 13,920

	19	7,729 44,333 2,631 1,235 55,927	55,947	*58,749*

BS3 Debtors & Prepayments

With the exception of items marked thus (*) all sums shown as Debtors at 1 September 2021 were received during the following year. All sums paid in advance at 1 September 2021 were for activities that have been held during 2021-22. Similarly, it is expected that payments in advance at 1 September 2022 will be expensed in 2022-23

Trade Debtors Council Tax Refunds Luton Road Methodist (balance) Other Debtors * St John's Loan Repayment Stipends Reimbursement/Grant Tenancy Deposits Prepayments Stipends, Pension, NI Methodist Insurance Other Prepayments Professional Fees Totals**	General CMTF Desig Restricted Endow Total 2021
	136 2,768 2,768 4,800 4,800 1,200 17,890 17,890 17,045 3,652 3,652 3,187 144 144 63
	26,486 2,768 29,254 *21,630*

Page 21 of 29

THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT

Notes to the accounts for the year ending 31 August 2022

BS4 Loans to Churches

Loans to churches within the Circuit may be granted by the trustees for a variety of purposes. All loans funds are sourced from the CMTF and are interest free. The asset, however, is carried in the General Fund and repayments are transferred back to the CMTF. The agreed repayment date (if set) is shown in the table below.

Church Date Granted St Margarets Sep-2018 St Johns Feb-2020	Amount £ 30,000 5 30,000 2	Period years years Totals		Balance Brought Forward £ 18,000 12,000	Additions £	Repaid this year Balance Carried Forward £ £ 6,000 12,000 5,000 7,000
				30,000		11,000 19,000

BS5 Central Finance Board (CFB) and Bank balances

Monetary balances held at the Central Finance Board of the Methodist Church and at Co-operative Bank plc are all available on demand without loss of interest. The split of these balances across General, Designated and Restricted Funds is arbitrary but wherever possible balances are not shown as negative.

Central Finance Board Co-operative Bank Cash in hand Sub Total Totals	General CMTF Desig Restricted Endow Total 2021

	*175,992* *71,422* *140,875* *7,115* *395,404* *412,747*
	11,615 11,615 8,942 46 46 46
	*11,661* *11,661* *8,988*

	187,653 71,422 140,875 7,115 407,065 421,735

BS6 Creditors, Accruals and Income in Advance

It is expected that all sums accrued at 31 August 2022 will be paid during the year to 31 August 2023

Income in Advance Assessments in advance Letting Income District Grant - HRCDC Creditors and Accruals Ministers' & Staff expenses Insurance Other Expenses National Trust Others Preaching Fees & Expenses Stipends, Pension, NI Taxation and Social Security Other Prepayments Totals	General CMTF Desig Restricted Endow Total 2021
	98,254 98,254 95,580 1,200 1,200 792 2,915 2,915 2,915 783 783 451 3,652 3,652 3,187 992 992 215 112 154 154 398
	107,950 107,950 *103,649*

BS6a Grants payable in next financial year

Page 22 of 29

THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT

Notes to the accounts for the year ending 31 August 2022

See Note 9 Maturity Analysis of Financial Instruments Assessments in advance Ministers' & Staff expenses Contractors Other Expenses Letting Income Others District Grants Stipends, Pension, NI Taxation and Social Security Other Prepayments Totals	General CMTF Desig Restricted Endow Total 2021
	16,205 60,000 76,205 77,795
	16,205 60,000 76,205 *77,795*
	Accrued at 1 Sept 21 Paid in year Accrual made in year Accrued at 31 Aug 22 95,580 (95,580) 98,254 98,254 450 (450) 783 783 3,298 (3,298) 3,872 3,872 215 (215) 886 886 792 (792) 1,200 1,200 398 (398) 40 40 2,915 (2,915) 2,915 2,915 0 (0) 103,649 (103,649) 107,950 107,950

Page 23 of 29

THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT

Notes to the accounts for the year ending 31 August 2022

BS7 Commitments

Some grants are payable in annual instalments. Since the Circuit recognises the moral responsibility to meet future instalments of grant, all future instalments are shown as liabilities on the balance sheet.

The following analyses, which should be read in conjunction with Note 9, are provided:

The total of anticipated grants stated below is comfortably within the balance of each of the respective Funds as shown in notes BS8 and BS9. It is the policy of the Circuit not to allow the future commitments of grant to exceed the balance of any fund from which the commitment is made.

[Comparative commitments are not required]

End of year commitments to pay one-off grants or the first instalment in a future year Anticipated second or subsequent instalments where the first instalment was paid in 2021-22 or earlier Total anticipated commitment 31 Aug 2022 Grants payable by year 2022 - 23 2023 - 24 2024 - 25 2025 - 26 2026 - 27 Total anticipated future commitment	General CMTF Desig Restricted Endow Total
	7,500 60,000 67,500 38,330 38,330
	45,830 60,000 105,830
	General CMTF Desig Restricted Endow Total
	16,205 60,000 76,205 16,295 16,295 13,330 13,330
	45,830 60,000 105,830
	31-Aug-22 2021 1,968,321 1,968,169
BS8 Unrestricted Funds

BS8.1 General Fund
Balance

The purpose of the fund is for use at the discretion of the trustees in the furtherance of the general objectives of the Circuit and which have not been designated for other purposes. About 95% of this fund is held as a freehold or leasehold property, being manses for ministers, investment properties and, from time to time, redundant chapels in the Circuit. Details of the grants and donations made from the General Fund during the year can be found in Note 9.

The Circuit Meeting is aware that grant applications must demonstrate public benefit and this is true for all funds.

BS8.2 Circuit Model Trust Fund 31-Aug-22 2021 Balance 25,611 24,112

The purpose of the fund is for use at the discretion of the trustees in the furtherance of the general objectives of the Circuit. Its main source of income is legacies and formulaically determined contributions from the sale of manses and church buildings in the Circuit.

Although this is technically an Unrestricted Fund under the control of the Circuit Meeting, prior approval is still required from the District to utilise these funds. Methodist Standing Orders 930, 931 and 917(2) are applicable.

Page 24 of 29

THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT

Notes to the accounts for the year ending 31 August 2022

BS8.3 Designated Funds

31-Aug-22 2021 Balance 80,875 95,598

These funds are to serve specific purposes but are not restricted by any document or deed to that purpose alone. Movements in these funds are set out in Note BS10 below and the details of the specific funds are as follows:

Manses - Receives an annual transfer from the General Fund based on the number of functional and investment manses and against this is charged routine maintenance, repairs and, as the need arises, refurbishments

Ministers - Receives an annual transfer calculated on the number of ministers and is used as a provisionto meet the removal costs of new presbyters joining the Circuit

Training - Receives an annual transfer from the General Fund and acts as a provision to meet the costs of relevant training courses. A formal

application process is in place and the fund is also open to applications from members of churches within the Circuit as well as Circuit staff Quinquennial - The Circuit is responsible for arranging an inspection of all its own properties, as well as those of its churches, every five years. Such inspections are carried out by a Qualified Surveyor. The costs of all inspections are met be the Circuit and generally known as the Surveyor(s) is

under contract. The frequency and cost of individual inspections is not uniform therefore the five year cost is assessed at the start of the cycle and one fifth of the known/estimated cost is transferred from the General Fund each year. It is therefore possible for this fund to show a negative balance

Assessment Equalisation - Funded from a portion of the sale proceeds of closed churches and used to subsidise the consequential additonal Assessment costs on the remianing churches over a period of 3 years Lay Salaries - Funded from prior year savings on budget v actual overall employment costs (ministers and lay workers) and used to part fund lay salaries over future years

BS9 Restricted and Endowment Funds

	31-Aug-22	2021
Restricted Funds Balance	9,883	8,864
Endowment Funds Balance	55,927	58,730

The restricted and endowment funds exist to support the causes listed below. All the funds' assets (except those restricted funds which are managed locally) are managed by TMCP and the net income (after charges) is paid direct to the administrators of the fund. Each fund listed below is

categorised according to the following key:

(EE) - {Expendable Endowment} Capital available with restrictions.

(PE) - {Permanent Endowment} Capital unavailable

(RL) - {Locally Restricted} Capital and interest available

Benevolent Fund (RL) - Receives interest from the "Lye" funds below and is restricted to provide support for the poor and needy of the Circuit Drama Fund (RL) - No regular funding but the capital is available for drama related projects within the Circuit Education & Youth Fund (RL) - Currently funded by an annual transfer of £500 from the General Fund. The capital may be used for any educational or youth purpose within the Circuit. A formal policy exists and there is a set application procedure

Chapel Street Fund (EE) - The interest from this fund is available for general Circuit purposes without restriction. The capital is available to support "Inner City Mission within the Luton area"

Lye Bequest (PE) - There are two funds both set up to provide support for the poor and needy of the Circuit. Only the interest from these funds is available and this is transferred to the local fund detailed above. Grants are made on a confidential basis and there is a written policy in place to ensure fairness of allocation and distribution

Movements during the year were as follows:

Market value at 1 September 2021 Income received during the year net of charges Grants paid during the year Net unrealised gain on the value of investments Investments sold Other Expenditure Future insallment of grants Provisions released Transfers to/from other Funds Market value at 31 Aug 2022 This is made up as follows: 2C100 - CFB Managed Mixed Fund 2C120 - CFB Managed Equity Fund 2C122 - CFB Managed Fixed Int Fund 2C110 - Trustees Interest Fund Debtors Bank, CFB and cash balances Provisions for future Grants (agreed) Total	Restricted Endow Total
	8,864 58,730 68,593 2,768 986 3,754 (600) (600) (2,816) (2,816) (2,613) (2,613) 1,465 (972) 493
	9,883 55,929 66,811
	42,013 42,013 13,914 13,914 2,768 2,768 7,115 7,115
	9,883 55,927 65,810

Page 25 of 29

THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT

Notes to the accounts for the year ending 31 August 2022

BS10 Summary of fund movements

Fund	Balance at 01/09/2021 Income Expenditure Transfers Grant Provisions [Net] Gains / Losses Balance at 31/08/2022 £ £ £ £ £ £
General	1,968,169 411,756 (362,913) (48,692) 1,968,321
Circuit Model Trust	24,112 0 (19,795) 11,000 10,295 25,611
Total unrestricted and undesignated	1,992,280 411,757 (382,708) (37,692) 10,295 1,993,932
Manses Ministers Training Quins Assessment Equalisation Lay Workers Salary Total designated	46,625 (41,909) 28,000 32,716 5,371 (5,120) 3,400 3,651 19,681 (321) 3,500 22,860 987 (4,572) 3,363 (222) 9,870 9,870 13,064 (1,064) 12,000
	95,598 (51,922) 37,199 80,875
Total unrestricted	2,087,879 411,757 (434,630) (493) 10,295 2,074,807
Benev (Local) Drama (Local) Educn & Youth (Local) Greg Obong-Oshotse Fund (Local) Total Restricted	4,974 (600) 965 5,339 818 818 3,071 500 3,571 2,768 (2,613) 154
	8,864 2,768 (3,213) 1,465 9,883
Chapel St Trust 18819 Lye Bequest for Poor Trust 3488 Lye Bequest Trust 5719 Circuit Music Fund Trust 16407 Total Endowment	7,722 36 (22) (7) 7,729 46,968 1,043 (134) (905) (2,640) 44,333 2,807 68 (8) (60) (176) 2,631 1,233 6 (4) 1,235
	58,730 1,153 (167) (972) (2,816) 55,928
Total Restricted and Endowment Total of all funds	67,593 3,921 (3,381) 493 (2,816) 65,810

	2,155,472 415,678 (438,011) (0) 10,295 (2,816) 2,140,617

BS11 Analysis of net assets between funds

Fund balances at 31 August 2021 are represented by:

Tangible fixed assets Fixed asset investments Investments Current assets Current liabilities Creditors due after one year	General CMTF Desig Restricted Endow Total *2021*
	1,493,131 1,493,131 1,493,131 350,000 350,000 350,000 0 42,013 42,014 44,830 233,139 71,441 140,875 9,883 13,914 469,252 487,284 (107,950) (16,205) (60,000) (184,155) (181,444) (29,625) (29,625) (38,330)
	1,968,321 25,611 80,875 9,883 55,927 2,140,617 *2,155,472*

Page 26 of 29

THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT

Notes to the accounts for the year ending 31 August 2022

BS12 Related Parties

None of the Circuit trustees made donations direct to the Circuit during the year or in the preceding year All of the Circuit trustees are members of one or another Church within the Circuit and may be trustees in their Churches.

Related parties include the Methodist Connexion, the BEH District and Churches within the Circuit, other Methodist Districts in Great Britain, CFB and TMCP, except as reported in Note 10a. All of these entities have their own trustees or directors.

None of the figures tabulated below appear elsewhere in these accounts

Names of related parties Fund for Property Mission in Britain Presbyters & Deacons Fund for Training Necessitious Local Preachers Methodist Church Fund LWPT World Mission JMA BEH District Circuit Churches Members	Party Receipts Payments Adjustments Balance due (from)/to the Circuit at 31-Aug-22 £ £ £ £ 1,250 (1,250) 923 (923) 708 (708) 100 (100) 100 (100) 50 (50) 1,022 (1,022) 310 (310) HRCDC Charity Ann Grant 7,000 (7,000) Marina Mele 125 (125)
	11,587 (11,587)

BS13 Agency Collections and Payments

The Circuit acted as agent in either the collection or facilitation of the monies tabulated below. None of these collections were for related parties as defined in Note BS12 above and do not appear elsewhere in these accounts .

Name	of	entity	Brief	details	Receipts	Payments	Adjustments	Balance due (from)/to the Circuit at 31-Aug-22
					£	£	£	£

BS14 Volunteer Contributions

Every entity (Connexion, District, 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, grants, training, safeguarding. We are grateful to all of them for their help and commitment. No attempt has been made by this Circuit to value the nonmonetary contributions to the Circuit in monetary terms.

Page 27 of 29

Notes to the accounts for the year ending 31 August 2022

THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT

BS15 Capital commitments and contingent liabilities

£60,000 has been set aside from the Manses Fund to cover the costs of converting the garage at 18 Malzeard Road into a study. This appears as a provision for future commitments elsewhere in these accounts. (2019-20 - £nil for both capital and contingent).

BS16 Lease commitments

The Circuit has contracts or obligations for the following:

Office accommodation which is an informal arrangement with a church within the Circuit and a contribution of £500 was made during the year (2020/21- £600) to cover heating and lighting costs

In addition there are short term obligations as follows:

Telephones at the Circuit office and the Circuit manses along with various maintenance contracts.

The total annual cost of these is not considered material.

BS17 Independent examiner

No accrual has been made for the fee of the independent examiner as the figure is immaterial.

The independent examiner provided no additional services during the year

Page 28 of 29

Name of Circuit :

South Bedfordshire No 34/04

Declarations and Scrutiny

I confirm that these accruals-based accounts for the year to 31 August 2022 have been prepared from the records of the Circuit and that they include all funds under the control of the Circuit meeting.

Signature of treasurer Date 30 November 2022

Name and address of treasurer: David James Hallworth ACIB

7 Windsor Close, Flitwick, Bedford MK45 1PT

Presentation to the Circuit meeting

I confirm that the annual report and accounts for the year ended 31 August 2022 were presented to the Circuit meeting held on: 27 June 2023

Signature of the Chair of the meeting: ……………………………………………………………………

Name of the Chair of the meeting: Rev Patrick Kandeh Date 27 June 2023

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Independent Examiner’s Report follows on the next page
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THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT Independent Examinefs Report to the Trustees of The South Bedfordshire Methodist Circuit Charity Number 1134222 Year Ended 31 August 2022 I report to Ihe charity trustees on my examinati of the wxJ)unts of the charity for the year ended 31 August 2022 which are set out on pages 1 to 29. Responsibilltias and ba¥1¥ of report As the charity's Iruslees you are reSpOnb f(x the preparation of Ihe actounls n accordance wth the requiretnenls of the Charities Act 20111lh8 Acr). I reFQrt in respect of my examination of the charity's e(mIntS Garried out under section 145 of the Act aThJ in carrying out my examFnation I have followed all the applicAtAe Diiethris gNen by the Charity comm0 under sects'on 14515llbl of the Act. Indepèndent examinerfs statement Since the chariVs gross income exceeded £250,IJ)O your examinei musl be a rnber of a body listed in s8dK)ll 145 01 the ALt. I confiirn that l am qualified to undertake Ihe examinati because l am a member of the Inslitule of Chartered Accountants in EnglarKI and W8le5. whith is one of the listed tw)dies. I have cornpleted my examination. I confirrn that rK) Matla1 maiters have come to my attention in connection with the examination gNing me cause lo IRlieve ihal in any malerial SKl.. accounting rec¢Yds were not kept in respect ofthe cjwity as required by sechon 130 of the Act," OT the accounts do not accord wth those recorils.. or the aCCunts do not comply th the applicable requirements concerning the forrn and content of accounts set out in the charit$ IA(tsunts and Reports) Regulations 21X)8 other than any requirement that the 8rxounts give a 'true and lair view whith is nol a matter considered as part of an independent examination. I have no concems and have come across no other matters in conneGtK)n with the examinalion to which attention shoLld drawn in this report in order to enate a proper utKlerstanding ofthe aUnIS to be reed. Theresa-Anne Warren FCA ChartedAceOunl3nt GP Financial Management Ltd 8 The Yard Lodge Fami Business CasllethorFe Milton Keynes MK197ES

2022-08-31-accounts

THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT

TRUSTEES’ ANNUAL REPORT

&

FINANCIAL STATEMENTS

For the Year ending 31 August 2022

Contents

1. Objectives and activities

2. Achievements and performance

Activities in 2021/22

Events

Community Engagement

Looking forward to 2022/23

3. Financial Review

3.1 Investment Policy and Performance

3.2 Reserves Level and Policy

3.3 Collaborative arrangements with connected charities

4. Trustees’ responsibilities

5. Structure, governance and management

5.1 Organisational structure

5.1.1.1 Trustees

6. Reference and Administrative Details

6.1 Name of the charity

6.2 Charity registration number

6.3 Principal Office

6.4

6.5 Superintendent Minister

6.6 Circuit Bursar

6.7 Names of Trustees

6.8 Bankers

6.10 Independent Examiner

Approvals

APPENDIX A

The South Bedfordshire Circuit

Reserves Policy

Aim

Mission Policy

Financial Plans

RESERVES POLICY

Introduction

Unrestricted Funds

General and Designated Funds

Circuit Model Trust Fund (CMTF)

Restricted Funds

SOUTH BEDFORDSHIRE METHODIST CIRCUIT

ANNUAL SUMMARY FINANCIAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022

Introduction

Budget 2021/22

Actual v Budget Performance (General Fund only)

Circuit Model Trust Fund

Manses Fund (Designated)

Conclusion

Statement of Financial Activities a Glance for the year ended 31 August 2022

FINANCIAL STATEMENTS

Statement of Financial Activities (SOFA) for the year ended 31 August 2022

Balance Sheet as at 31 August 2022

Basis of accounting and accounting policies

i Accounting standard

ii Public benefit entity

iii Basis

iv Content

This clause is intentionally blank

vi Going concern

vii Consolidation

viii

Income recognition

ix Grants (Received)

x Expenditure

xi Grants (Given)

xii

VAT

xiii Tangible fixed assets

xiv(a) Monetary Investments

xiv(b) Investment Property

xv Receivables and Payables; Bank and Cash (Basic Financial Instruments)

xvi Loans as Basic Financial Instruments

xvii Methodist Connexional Funds

xviii Funds

xvix Endowment funds

xx Ministers' manse costs