THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT – TRUSTEES’ ANNUAL REPORT 2023
THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT
(Charity Registration No. 1134222)
TRUSTEES’ ANNUAL REPORT &
FINANCIAL STATEMENTS
For the Year ending 31 August 2023
Contents
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 2023
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 2022.
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:
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Increase awareness of God’s presence and celebrate God’s love
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Help people to grow and learn as Christians through mutual support and care
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Be a good neighbour to people in need and challenge injustice
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Make more followers of Christ
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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.
Activities of the Circuit and its Churches and Community Engagement in 2022/23
Circuit Events
The annual Open-air Circuit Service took place in July 2023 on Dunstable Downs. About once a quarter an EDI Circuit Service is held both face-to-face and on zoom to be as inclusive as possible.
A Circuit service at The Square was held for a visit by the President of the Methodist Conference.
Local Preachers’ celebration for long service awards.
The Circuit team welcomed a new Baptist Minister for the Olive Tree Local Ecumenical Partnership.
Circuit Leadership Team
The Circuit Leadership Team has been working towards a staffing strategy that takes into account the needs of the Circuit Churches in terms of ordained ministerial allocation, in conjunction with a reduced Circuit budget going forward.
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THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT – TRUSTEES’ ANNUAL REPORT 2023
Hightown Methodist Church
Outreach activities in the Hightown Methodist Church in the 2022/23 Connexion year included a regular monthly coffee morning and networking with the Hightown community which led to a church meets the community gathering bringing together various professional form the Luton council and shop owners in the Hightown community. There was a community coral service held in December leading to the lighting of the Hightown Christmas tree.
Trinity Leighton Buzzard
The monthly Messy Church is an important part of Trinity’s outreach and mission. Our paid Messy Church leader moved away in September 2022, and a team of volunteers at Trinity kept it going for a few months. nThis put a heavy burden on a few individuals, we therefore took the decision to appoint a new paid leader starting in February 2023 to ensure the continuity of this outreach.
In September 2022 we started a bi-weekly Games Fellowship afternoon at the church to which anyone is invited to play board games and enjoy a cup of tea.
As part of Fairtrade fortnight celebrations in the town In March Trinity hosted a Coffee morning on behalf of the local Fairtrade group which was very well attended, promoting fair trade at Trinity, across Leighton Buzzard and wider.
Following a gap of three years, Trinity once again had a stall at the Leighton Buzzard May Fair with activities for the children, providing a great opportunity to talk to families and invite them to our Early Church and Messy Church services.
To celebrate the coronation of King Charles lll in May Trinity held a Coronation Tea which was attended and enjoyed by members and friends alike.
The church got together in June 2023 to consider its future at “Talking about Trinity”. This was an important event at which we examined our worship and work for God in Leighton Buzzard, our priorities and resources. Based on these conversations we are making changes to our worship, are examining our building and how we promote our presence to the population in Leighton Buzzard. This includes formation of a new committee = Community Action Group - to support Trinity’s engagement in public issues and those facing the wider community.
After a concerted effort over three years Trinity was awarded the Silver Eco-Church award in June 2023.
In June we hosted a Volunteering Fair giving local charities an opportunity promotes their work to the public, and to get together and exchange news and ideas.
Strathmore Avenue Methodist Church
Breakfast Club - twice a month, once for the homeless and the community, and once for families with children. Lunch Club - once a quarter by prior arrangement.
Farley Hill
Tea ‘n toast once a week during term time Saturday morning Breakfast with Food bank collection once a month Lunch club once a month for over 55’s Messy church once a quarter for young families Visits at times of festivals from the local primary school
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THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT – TRUSTEES’ ANNUAL REPORT 2023
Toddington Methodist Church
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Coffee Mornings – held monthly either by Church members, local community groups or charities. The Christmas coffee morning was led by The Pudding Club and music was provided by The Music Makers (community group) and Ukelele Group.
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The Community Garden is run by the Church with a few local volunteers. Organic fruit and vegetables plus herbs are available for everyone in the community to pick. There are also seats for people to enjoy the garden on sunny days.
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We run 2 Pudding clubs. A monthly one for adults and weekly ones for children. These are split into younger and older groups and are term time only.
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Bible study group. This meets weekly and is attended by 10-12 people. One attendee is from outside the village. She also attends the Pudding Club and Creative Space and her children also come to many activities.
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Guild and Games meet monthly and provides company, games and a short time of reflection. This is attended by mainly elderly people from the local community with a few Church members.
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Creative Space meets once a month for crafting sessions. This is mainly younger women from the community with a few Church members.
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Holiday Clubs run once a week in the summer holidays. This is run by Tania with help from the Church and many teenagers who have been to them in past years. They love being helpers!
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Food Bank – regular giving once a month
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Christmas Shoe Boxes
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Support for Noah and refugees (clothing and suitcases) in Dunstable
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Christmas Lunch after a service during December was attended by 40 people (some from community)
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Achieved Eco – church Bronze status in 2023 and continue to work towards reducing our carbon footprint further
Our Mission Enabler, Tania has had a significant input to all of these groups and activities which is very important for our work in the village. Currently we are working with Tania to update our Mission Plan.
There are two new housing estates built and we are working with the community to provide information to new residents.
Wigmore (Methodist/URC LEP
Friendship café twice a month in conjunction with the local GP surgery.
Mount Pleasant Methodist Church
Ceased to meet in 2022 and a final celebration service was held.
Barton Methodist Church
A ‘Tea-club’ is run by church members on the first Tuesday of each month attended by about 20 elderly ladies some of whom are affiliated to the church and some who are not. Home-made cakes and refreshments are served to the ladies. Dogs are welcome!
The Bright Hour meets on the third Tuesday of each month attended by a similar clientele as the Tea Club. This is an ecumenical group led by Methodist Church members with visiting speakers, followed by refreshments. Dogs are also welcome at this event.
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THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT – TRUSTEES’ ANNUAL REPORT 2023
St John’s Methodist Church
Craft and Games Club continues after school on Mondays during term-time. Average attendance of primary age children is 25-30 + accompanying parents/carers. This group offers a welcoming and supportive Christian presence to the local community including families from other faiths and ethnic backgrounds.
A weekly coffee morning is held on Tuesdays during term-time which includes some parents from the Monday club, additional friends and the occasional passer-by.
As a church we have supported a church family with a successful charity event for the Luton & Dunstable hospital maternity services which raised over £9,000.
The local infant schools visit St John’s for educational visits at Christmas and Easter and the minister is invited into school to take assemblies for these Christian festivals.
The premises are let once a week to a Seventh Day Adventist congregation and an Asian Christian Fellowship group for worship.
The Boys Brigade meet weekly during term-time and invite parents and church representatives to award ceremonies and special events held in church.
There is a monthly Munch Club, when a cooked meal is prepared and served by church members. About 25-30 people are in regular attendance some from church and some non-church. A number of the regulars are pensioners who live on their own and enjoy the company and hot dinner provided.
High St, Leagrave
The church has a number of regular lettings for the community, including a nursery, scouts and other worshipping communities as well as occasional lettings.
The Square Methodist Church, Dunstable
Supports work with refugees and asylum seekers in the local area, improving English classes, basic cooking skills and protection of vulnerable women.
Extensive use of the premises for a wide range of community groups. The church is actively involved in civic events throughout the year.
Harlington Methodist Church
The Methodist Church has good ecumenical links with the Parish Church and Life Church. The members run clubs on the premises for children and young people in the village to engage with the Christian story in a fun and creative way.
The church takes part in village events and at Christmas meets in the neighbouring pub for ‘Beer and Carols’ as part of their outreach. Church led craft groups and ladies groups meet on the premises as a place of welcome and friendship.
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THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT – TRUSTEES’ ANNUAL REPORT 2023
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.
Eaton Bray Methodist Church
Is exploring the idea of project to transform their historic premises into a retreat/worship centre as a District resource.
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
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the stipends and associated employment costs of our presbyteral staff
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the employment costs of our lay employees
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the cost of Quinquennial property inspections on our Circuit churches and manses
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by way of a set annual provision, the repairs, maintenance and refurbishment of our manses
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by way of set annual provision, the training needs of our staff and church member
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.
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THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT – TRUSTEES’ ANNUAL REPORT 2023
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:
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Investment income and gains
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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.
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”
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THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT – TRUSTEES’ ANNUAL REPORT 2023
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. Future Plans
The Circuit’s strategy for the future is contained within its “Next Steps” initiative. In essence this involves determining our evolving mission strategy and adapting it to meet changing circumstances within our churches.
No small part of this is ensuring that our stated mission strategy can be delivered within our available financial resources. In this connection, as a matter of policy, we strive to fund our day to day regular expenses from current income. We are generally averse to subsidising normal operating costs from reserves (usually generated from the sale of capital resources).
Given, our operating income is almost wholly provided by the churches within the Circuit, we monitor very closely the ongoing financial health of our churches. Recognising that since Covid individual church finances are under pressure, our “Next Steps” initiative is to restructure the Circuit so that it can successfully operate with a reduced compliment of ministers. The plan is to reduce the number of full time equivalents to four by September 2026.
5. 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:
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ü Select suitable accounting policies and applied them consistently;
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ü Observe the methods and principles in the Charities SORP (FRS102);
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ü State whether applicable UK Accounting Standards have been followed, subject to any material departures which are explained in the financial statements;
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ü Make judgements and estimates that are reasonable and prudent;
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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.
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THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT – TRUSTEES’ ANNUAL REPORT 2023
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.
6. 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:
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Providing opportunities for Churches to work together and support each other
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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.
6.1 Organisational structure
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Ø Overall control rests with the Methodist Conference.
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Ø The Connexional Office implements decisions made by Conference and is also responsible for the stationing of ministers in individual Circuits.
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Ø Connexional decisions are passed to the Chair of the District and the appropriate Officers of the District for regional implementation.
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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.
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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
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THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT – TRUSTEES’ ANNUAL REPORT 2023
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.
The South Bedfordshire Methodist Circuit comprises 19 churches located in Luton, Dunstable, Leighton Buzzard and the surrounding villages. They are listed below:
Aley Green Barton Beech Hill Edlesborough Farley Hill Dunstable, The Square Eaton Bray High Town Kensworth Gravenhurst Harlington Olive Tree (St Margarets LEP) Strathmore Avenue Leagrave, High Street Leighton Buzzard, Trinity Toddington Wigmore (Methodist Oakdale St John’s URC LEP)
6.1.1.1 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 2022/23 are listed at 6.6 below. A current list of Trustees can be found on the Charity Commission website.
7. Reference and Administrative Details
7.1 Name of the charity
The South Bedfordshire Methodist Circuit
7.2 Charity registration number
1134222, registered in England and Wales
7.3 Principal Office
Office 3, Hightown Methodist Church,
49 High Town Rd Luton
Bedfordshire
LU2 0BW
7.4 Superintendent Minister
Rev Patrick Kandeh
7.5 Circuit Bursar
Mr David Hallworth ACIB 7 Windsor Close Flitwick MK45 1PT
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THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT – TRUSTEES’ ANNUAL REPORT 2023
7.6 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 |
| Andrew | Burchell | Ruth | Payne |
| Ann | Cassidy | Sue | Penn |
| Betty | Croft | Christine | Pepworth |
| Pauline | Doody | Sheila | Pollard |
| Ivor | Edwards | Jo | Prowse |
| Wallace | Edwards | Colin | Quine |
| Marjorie | Fleming | Jackie | Roberts |
| Anne | Gray | Brian | Roe |
| Sheila | Green | Steve | Rogers |
| Michael | Hare | Christina | Salmon |
| Rosemary | Hare | Clive | Salmon |
| Gillian | Henley | David | Sear |
| Michael | Henley | Cathy | Sheehan |
| Helen | Hodder | Joanne | Sherwood |
| Janet | Hornsby | Brenda | Shields |
| Charles | Horsefield | Terry | Sissons |
| Enid | Horton | Alan | Smith |
| Melda | Husband | Sue | Stokes |
| Terence | Ilott | Glynnis | Thompson |
| Gill | Jardine | Ken | Waller |
| Seung- Wook |
Jung | Martin | Wallis |
| Patrick | Kandeh | Norman | Willis |
| Sheila | Kay | Alison | Wilson |
| Sheila | Marsden |
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THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT – TRUSTEES’ ANNUAL REPORT 2023
7.7 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
7.8 Investment Managers Trustees for Methodist Church Purposes Central Buildings Oldham Street Manchester M1 1JQ
7.9 Independent Examiner Theresa-Anne Warren GP Financial Management Ltd., 8 The Old Yard Lodge Farm Business Centre Wolverton Road Castlethorpe Milton Keynes MK19 7ES
7.10 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 were presented to the Circuit Meeting on 20 February 2024
Patrick Kandeh (signed) David Hallworth (signed) Rev Patrick Kandeh David J Hallworth ACIB Superintendent and Chair of Meeting Circuit Bursar June 2024 June 2024
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THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT – TRUSTEES’ ANNUAL REPORT 2023
APPENDIX A
The South Bedfordshire Circuit
Reserves Policy 2023/24
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.
(c) The maintenance of the eight Circuit manses, including two let externally at a market rent.
(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 2023
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 £143,985 (excluding tangible assets, Designated Funds and loans to churches) represents about 3.9 months budgeted expenditure (net of income for CMTF grants). Our policy is to hold about 3 months of gross expenditure as a reserve, and 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.
If General reserves fall below our target, we will seek approval from the Circuit Meeting to make up any shortfall from either or a combination of:
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an increase in Assessments the following year.
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A portion of the sales proceeds of any properties sold or in the course of sale
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A transfer of funds from the CMTF
If General Reserves are above the target 3 months cover of normal gross expenditure, the surplus will be either:
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Transferred to the CMTF
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Held as a surplus reserve and depleted to the target level the following year by setting a deficit budget. This would effectively reduce the formula calculated Assessment on churches.
Designated Funds are effectively sinking funds or provisions against future expenditure in key areas. Every year and for to each of these funds.
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 £23,611 as at 31 August 2023
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THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT – TRUSTEES’ ANNUAL REPORT 2023
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 requited) for relief of the poor in the Circuit via the Benevolent Fund
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 – TRUSTEES’ ANNUAL REPORT 2023
SOUTH BEDFORDSHIRE METHODIST CIRCUIT
ANNUAL SUMMARY FINANCIAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022
SOUTH BEDFORDSHIRE METHODIST CIRCUIT
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 31 AUGUST 2023
Introduction
This has been a somewhat turbulent year in terms of our performance against budget with an end result of £28,335 favourable .
I normally set the budget in January and for the sake of consistency do. Not usually alter it in the light of subsequent events. It is partly for this reason that the end result is significantly better than predicted.
As it happens, given the agreed ministerial extensions for Nigel Bibbings and Joanne Sherwood agreed in September 2023 (the next financial year) and the consequential financial implications, this budget surplus will be useful in covering some of those unplanned future costs. I will be presenting detailed proposals in early 2024.
Budget 2022/23
This was set with a gross expenditure of just over £405k with £381k 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 £7.5k per church was set with a further £76k 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, once again, the required Assessment was raised in full
Actual v Budget Performance (General Fund only)
The original budget figures excluded:
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Additional Assessment charge on The Olive Tree re Joanne Sherwood’s -.25 fte cover. This was also excluded from the expenditure figures.
-
The unplanned continued employment of a part time Circuit Worker. Estimated cost £15k and part funded by £12k from the prior year budget surplus
An analysis is attached. However, the budget figures on this have been restated to take into account the above.
Overall, we ended up £28k favourable to budget. A number of factors contributed to this and are set out in the notes below. The numbering corresponds to the legend in the attached table.
-
Investment Income (£12k favourable) – there was a considerable rise in interest rates and this reflected in the interest income earned on our Central Finance Board (CFB) account
-
Rental Income (Gross £5k favourable) – a lettings void of 2 months is always budgeted. There was no change of tenant in either rental property
Page 16 of 17
THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT – TRUSTEES’ ANNUAL REPORT 2023
-
Assessments (£2.5k adverse) – The closure of Mount Pleasant resulted in no Assessment from it for the last quarter.
-
Admin & Finance Salaries (£4.6K favourable) – During the year the Circuit Administrator resigned.
-
Stipends/NI/Pensions (£4.2k favourable) – A significant increase in employer contributions to the Ministers’ Pension Scheme was planned. However, post budget preparation this was rescinded.
-
Ministers’ Travel (£3.5k favourable) – I have kept the budget figure at pre-Covid levels. However, the trend is lesser mileage.
-
Circuit Workers (£2.5k adverse) – see narrative above. Planned and expected.
-
Manse Expenses (£1.8k favourable) cancelation of British gas service contracts and a move to self funding serving and repairs. In future this will be covered by an increase annual transfer to the Manses R&M fund.
-
Preaching/Worship/Misc (£1k favourable) – Nothing particularly significant here. £500 accounted for by a budget of £1k for the Dunstable Downs event against an actual spend of £450
Circuit Model Trust Fund
We made a commitment to use £15k to fund a 0.5fte Circuit Worker in 2023/24.
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 there were no particularly significant items. £31k of the £34.5k of the cost of the Malzeard Road garage conversion was capitalised.
This sum still needs to be returned to the Manse Fund from part of the sale proceeds of Mount Pleasant. Conclusion
Circuit finances remain in a stable position, and our Liquid General Reserves cover about 3.9 months of gross expenditure.
2023/24 will be a further challenge and whilst once again the necessary Assessment has been agreed, the inflationary pressure on the cost of living will again impact on the ability of members to maintain their current level of giving to churches.
It is my intention to suggest our Reserves Policy for General Reserves is to maintain 3 months gross expenditure.
Also attached to this report is:
-
Statement of Financial Activities (SOFA) in abbreviated form
-
Balance Sheet – Funds at a Glance
David J Hallworth Circuit Bursar 19 October 2023
Page 17 of 17
THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT FUNDS AT A GLANCE (BALANCE SHEET) AS AT 31 AUGUST 2023
| Fixed Assets | U | nrestricted Funds | nrestricted Funds | Total Unrestricted | Restricte | Restricte | Restricte | d & Endo | wment Funds | wment Funds | wment Funds | wment Funds | £ 1,989,381 350,000 40,229 Totals 2023 |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Trust | Designated | Funds | Restricted 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 | Mount Pleasant 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 2022 | |||
| £ | £ | £ | £ | £ | £ | £ | £ | £ | £ | £ | £ | £ | £ | £ | £ | £ | £ | £ | £ | £ | £ | ||
| 1,989,381 350,000 |
|||||||||||||||||||||||
| Circuit Manses & Equipment | 1,989,381 | 1,493,131 | |||||||||||||||||||||
| Investmentproperties | 350,000 | 350,000 | |||||||||||||||||||||
| Investments | 37,710 | 2,519 | 40,229 | 42,014 | |||||||||||||||||||
| Totalfixed assets | 2,339,381 | 2,339,381 | 37,710 | 2,519 | 40,229 | 2,379,610 | 1,885,145 | ||||||||||||||||
| Current Assets | 23,349 6,000 13,956 396,779 5,474 |
||||||||||||||||||||||
| Debtors | 23,349 | 23,349 | 29,254 | ||||||||||||||||||||
| Loans bythe Circuit | 6,000 | 6,000 | 19,000 | ||||||||||||||||||||
| Trustees for Methodist Church Purposes | 19 | 19 | 7,721 | 4,945 | 1,271 | 13,937 | 13,933 | ||||||||||||||||
| Central Finance Board Deposits | 149,668 | 74,922 | 120,716 | 7,051 | 13,360 | 3,578 | 19,870 | 164,575 | 389,164 | 5,339 | 818 | 4,071 | (2,613) | 7,615 | 395,404 | ||||||||
| Cash at Bank and in hand | 61,887 | (6,705) | (45,318) | (1,191) | (2,886) | (49,396) | 5,786 | 1,268 | (446) | (364) | (770) | (312) | 11,661 | ||||||||||
| Total current assets | 240,904 | 68,236 | 75,397 | 7,051 | 12,169 | 692 | 19,870 | 115,179 | 424,319 | 6,607 | 818 | 3,626 | (2,978) | (770) | 7,303 | 7,721 | 4,945 | 1,271 | 13,937 | 445,559 | 469,252 | ||
| 97,097 31,795 |
|||||||||||||||||||||||
| Creditors(due in under 1year) | 96,919 | 162 | 16 | 178 | 97,097 | 107,950 | |||||||||||||||||
| Grant instalments due in 2023-24 | 31,295 | 31,295 | 500 | 500 | 76,205 | ||||||||||||||||||
| Net current assets/liabilities | 143,985 | 36,941 | 75,236 | 7,051 | 12,152 | 692 | 19,870 | 115,001 | 295,928 | 6,607 | 818 | 3,126 | (2,978) | (770) | 6,803 | 7,721 | 4,945 | 1,271 | 13,937 | 316,667 | 285,097 | ||
| Total assets less current liabilities | 2,483,366 | 36,941 | 75,236 | 7,051 | 12,152 | 692 | 19,870 | 115,001 | 2,635,309 | 6,607 | 818 | 3,126 | (2,978) | (770) | 6,803 | 7,721 | 42,655 | 2,519 | 1,271 | 54,166 | 2,696,277 | 2,170,242 | |
| 13,330 | |||||||||||||||||||||||
| Creditors and Accruals including any loans (due after more than 1year) |
|||||||||||||||||||||||
| Grant instalments due after 2023-24 | 13,330 | 13,330 | 29,625 | ||||||||||||||||||||
| Net assets | 2,483,366 | 23,611 | 75,236 | 7,051 | 12,152 | 692 | 19,870 | 115,001 | 2,621,979 | 6,607 | 818 | 3,126 | (2,978) | (770) | 6,803 | 7,721 | 42,655 | 2,519 | 1,271 | 54,166 | 2,682,947 | 2,140,617 | |
| Funds of the Circuit | 2,483,367 23,611 115,001 |
2,483,367 23,611 115,001 2,621,979 6,803 54,166 |
|||||||||||||||||||||
| General Fund(Unrestricted) | 2,483,367 | ||||||||||||||||||||||
| Circuit Model Trust Fund(Unrestricted) | 23,611 | ||||||||||||||||||||||
| Designated Funds(Unrestricted) | 75,236 | 7,051 | 12,152 | 692 | 19,870 | 115,001 | |||||||||||||||||
| Total Unrestricted Funds | 2,074,807 | ||||||||||||||||||||||
| Restricted Funds | 6,607 | 818 | 3,126 | (2,978) | (770) | 6,803 | 9,883 | ||||||||||||||||
| Endowment Funds | 7,721 | 42,655 | 2,519 | 1,271 | 54,166 | 55,927 | |||||||||||||||||
| Total Funds | 2,483,366 | 23,611 | 75,236 | 7,051 | 12,152 | 692 | 19,870 | 115,001 | 2,621,979 | 6,607 | 818 | 3,126 | (2,978) | (770) | 6,803 | 7,721 | 42,655 | 2,519 | 1,271 | 54,166 | 2,682,947 | 2,140,617 | |
| Liquid Funds | |||||||||||||||||||||||
| 143,985 | 23,611 | 75,236 | 7,051 | 12,152 | 692 | 19,870 | 115,001 | 282,598 | 6,607 | 818 | 3,126 | (2,978) | (770) | 6,803 | 7,721 | 4,945 | 0 | 1,271 | 13,937 | 303,337 | 255,472 |
Page 1 of 1
THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT FUNDS AT A GLANCE (SOFA) AS AT 31 AUGUST 2023
Name of Circuit: South Bedfordshire
Circuit No: 34/04
Statement of Financial Activities a Glance for the year ended 31 August 2023
| Notes Income and Endowments 1 Donations and legacies 2 Income from Monetary Investments 3 Income from Investment Property 4 4 Income from charitable activities 5 Assessments on Churches 5 6 Captial Receipts 6 7 Grants 7 8 Other charitable activities 9 Total from charitable activities 10 Other charitable income 11 Total charitable income 12 Other income 8 13 Total income and endowments Expenditure Expenditure on charitable activities 21 Grants and donations 9 21a Future instalments of grant 9 21b Grant instalments provisions released 9 22 Salaries and associated costs 10 23 Property 11 24 Office expenses 12 25 District Assessment & Levy 13 26 Other outgoings 14 27 Total charitable expenditure 31 Net Income before investment gains/losses 32 Net gains/(losses) on Monetary Investments 15 33 Net gains/(losses) on Property Disposals/Revaluations 15a 34 Net incoming/(outgoing) resources before transfers 35 Transfers between funds 16 36 Reclassification of funds 17 37 Other gains/(losses) 18 38 Net movement in funds 39 Total funds brought forward 50 Total funds carried forward |
Unrestricted Funds | Restricted & E | ndowment Funds | £ 13,982 14,010 390,429 465,000 1,940 885,361 885,361 14,835 900,196 16,651 15,500 (76,205) 259,779 51,960 4,255 79,604 4,537 356,081 544,115 (1,784) 542,331 542,331 2,140,617 2,682,947 Grand Total 2022-23 |
||||
|---|---|---|---|---|---|---|---|---|
| al | el Trust | Designated Funds | Restricted Funds | Endowment Funds |
||||
| Gener | Circuit Mod | Manses Ministers Training Quins Assm't EQ Lay Salaries Total Designated |
Benev (Local) Drama (Local) Educn & Youth (Local) Luton Road Church Mount Pleasant Church Total Restricted |
Chapel St Trust 18819 Lye Bequest for Poor Trust 3488 Lye Bequest Trust 5719 Circuit Music Fund Trust 16407 |
Total Endowment |
Total 2021-22 |
||
| £ | £ | £ £ £ £ £ £ £ 1,940 1,940 |
£ £ £ £ £ £ |
£ £ £ £ |
£ 1,681 |
£ | ||
| 12,300 | 1 | 245 1,319 78 40 |
2,690 | |||||
| 14,010 | 13,800 | |||||||
| 390,429 | 382,320 | |||||||
| 465,000 | ||||||||
| 2,768 | ||||||||
| 881,739 | 1 | 1,940 1,940 |
245 1,319 78 40 |
1,681 | 401,578 | |||
| 881,739 | 1 | 1,940 1,940 |
245 1,319 78 40 |
1,681 | 401,578 | |||
| 14,835 | 14,100 | |||||||
| 896,574 | 1 | 1,940 1,940 |
245 1,319 78 40 |
1,681 | 415,678 | |||
| (60,000) (60,000) 16,170 2,886 19,056 1,208 1,208 |
446 446 500 500 3,132 770 3,902 |
159 | ||||||
| 16,205 | 20,395 | |||||||
| 15,000 | 7,500 | |||||||
| (16,205) | (17,795) | |||||||
| 259,779 | 252,638 | |||||||
| 29,002 | 78,681 | |||||||
| 4,096 | 22 126 8 4 |
4,753 | ||||||
| 79,604 | 0 | 78,016 | ||||||
| 3,329 | 3,529 | |||||||
| 375,810 | 15,000 | (43,830) 1,208 2,886 (39,736) |
946 3,132 770 4,848 |
22 126 8 4 |
159 | 427,716 | ||
| 520,765 | (15,000) | 45,770 (1,208) (2,886) 41,676 |
(946) (3,132) (770) (4,848) |
223 1,192 70 36 |
1,521 | (12,038) | ||
| (1,673) (112) |
(1,784) | (2,816) | ||||||
| 520,765 | (15,000) | 45,770 (1,208) (2,886) 41,676 |
(946) (3,132) (770) (4,848) |
223 (480) (42) 36 |
(263) | (14,855) | ||
| (3,250) 3,400 (9,500) 3,800 10,000 (12,000) (7,550) |
1,268 500 1,768 |
(1,499) | ||||||
| (5,719) | 13,000 | (231) (1,198) (70) |
(0) | |||||
| 515,046 | (2,000) | 42,520 3,400 (10,708) 914 10,000 (12,000) 34,126 |
1,268 (446) (3,132) (770) (3,080) |
(8) (1,678) (112) 36 |
(1,762) | (14,855) | ||
| 32,716 3,651 22,860 (222) 9,870 12,000 80,875 |
5,339 818 3,571 154 9,883 |
55,927 | ||||||
| 1,968,321 | 25,611 | 7,729 44,333 2,631 1,235 |
2,155,472 | |||||
| 2,483,367 | 23,611 | 75,236 7,051 12,152 692 19,870 115,001 |
6,607 818 3,126 (2,978) (770) 6,803 |
7,721 42,655 2,519 1,271 |
54,166 | 2,140,617 |
Page 1 of 1
THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT (Charity Registration No. 1134222)
FINANCIAL STATEMENTS
For the Year ending 31 August 2023
Page 1 of 30
Name of Circuit: South Bedfordshire
Circuit No: 34/04
Statement of Financial Activities (SOFA) for the year ended 31 August 2022
| Notes Income and Endowments 1 Donations and legacies 2 Income from Monetary Investments 3 Income from Investment Property 4 4 Income from charitable activities 5 Assessments on Churches 5 6 Captial Receipts 6 7 Grants 7 8 Other charitable activities 9 Total from charitable activities 10 Other charitable income 11 Total charitable income 12 Other income 8 13 Total income and endowments Expenditure Expenditure on charitable activities 21 Grants and donations 9 21a Future instalments of grant 9 21b Grant instalments provisions released 9 22 Salaries and associated costs 10 23 Property 11 24 Office expenses 12 25 District Assessment & Levy 13 26 Other outgoings 14 27 Total charitable expenditure 31 Net Income before investment gains/losses 32 Net gains/(losses) on Monetary Investments 15 33 Net gains/(losses) on Property Disposals/Revaluations 15a 34 Net incoming/(outgoing) resources before transfers 35 Transfers between funds 16 36 Reclassification of funds 17 37 Other gains/(losses) 18 38 Net movement in funds 39 Total funds brought forward 50 Total funds carried forward |
Unrestricted Funds | Restricted & Endowment Funds |
£ 13,982 14,010 390,429 465,000 1,940 885,361 885,361 14,835 900,196 16,651 15,500 (76,205) 259,779 51,960 4,255 79,604 4,537 356,081 544,115 (1,784) 542,331 542,331 2,140,617 2,682,947 Total 2022-23 |
|
|---|---|---|---|---|
| General Circuit Model Trust Designated £ £ £ |
Restricted Endowment |
Total 2021-22 |
||
| £ £ |
£ | |||
| 12,300 1 |
1,681 | 2,690 | ||
| 14,010 | 13,800 | |||
| 390,429 | 382,320 | |||
| 465,000 | ||||
| 1,940 | 2,768 | |||
| 881,739 1 1,940 |
1,681 | 401,578 | ||
| 881,739 1 1,940 |
1,681 | 401,578 | ||
| 14,835 | 14,100 | |||
| 896,574 1 1,940 |
1,681 | 415,678 | ||
| 16,205 | 446 | 20,395 | ||
| 15,000 | 500 | 7,500 | ||
| (16,205) (60,000) |
(17,795) | |||
| 259,779 | 252,638 | |||
| 29,002 19,056 |
3,902 | 78,681 | ||
| 4,096 | 159 | 4,753 | ||
| 79,604 0 |
78,016 | |||
| 3,329 1,208 |
3,529 | |||
| 375,810 15,000 (39,736) |
4,848 159 |
427,716 | ||
| 520,765 (15,000) 41,676 |
(4,848) 1,521 |
(12,038) | ||
| (1,784) | (2,816) | |||
| 520,765 (15,000) 41,676 |
(4,848) (263) |
(14,855) | ||
| (5,719) 13,000 (7,550) |
1,768 (1,499) |
(0) | ||
| 515,046 (2,000) 34,126 |
(3,080) (1,762) |
(14,855) | ||
| 1,968,321 25,611 80,875 |
9,883 55,927 |
2,155,472 | ||
| 2,483,367 23,611 115,001 |
6,803 54,166 |
2,140,617 |
Page 2 of 30
Name of Circuit: South Bedfordshire
Circuit No: 34/04
Balance Sheet as at 31 August 2023
| 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 2023 | Totals 2022 |
||
| £ | £ | £ | £ | £ | £ | |||
| 1,989,381 | 1,989,381 | 1,493,131 | ||||||
| 350,000 | 350,000 | 350,000 | ||||||
| 0 | 40,229 | 40,230 | 42,014 | |||||
| 2,339,381 | 40,229 | 2,379,611 | 1,885,145 | |||||
| 23,349 | 23,349 | 29,254 | ||||||
| 6,000 | 6,000 | 19,000 | ||||||
| 19 | 13,937 | 13,956 | 13,933 | |||||
| 149,668 | 74,922 | 164,575 | 7,615 | 396,779 | 395,404 | |||
| 61,887 | (6,705) | (49,396) | (312) | 5,474 | 11,661 | |||
| 240,904 | 68,236 | 115,179 | 7,303 | 13,937 | 445,559 | 469,252 | ||
| 96,919 | 178 | 97,097 | 107,950 | |||||
| 31,295 | 500 | 31,795 | 76,205 | |||||
| 143,985 | 36,941 | 115,001 | 6,803 | 13,937 | 316,667 | 285,097 | ||
| 2,483,367 | 36,941 | 115,001 | 6,803 | 54,166 | 2,696,277 | 2,170,242 | ||
| 13,330 | 13,330 | 29,625 | ||||||
| 2,483,367 | 23,611 | 115,001 | 6,803 | 54,166 | 2,682,947 | 2,140,617 | ||
| General Fund(Unrestricted) | 2,483,367 | |||||||
| Circuit Model Trust Fund(Unrestricted) | 23,611 | |||||||
| Designated Funds(Unrestricted) | 115,001 | |||||||
| Total Unrestricted Funds | 2,621,979 | 2,074,807 | ||||||
| Restricted Funds | 6,803 | 6,803 | 9,883 | |||||
| Endowment Funds | 54,166 | 54,166 | 55,927 | |||||
| Total Funds | 2,483,367 | 23,611 | 115,001 | 6,803 | 54,166 | 2,682,947 | 2,140,617 |
Page 3 of 30
THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT STATEMENT OF CASH FLOWS For the year ended 31 August 2023
| Total | 2023 | Totals 2022 | Totals 2022 | ||
|---|---|---|---|---|---|
| £ | £ | £ | £ | ||
| Cash flow from operating activities | |||||
| Net cash from operatingactivities | (16,366) | (45,246) | |||
| Cash flow from Investing activities | |||||
| (Payments)to acquire fixed assests | (31,250) | ||||
| Payments to acquire investments | |||||
| Receipts from sales of Investments | |||||
| Interest & dividends received | 13,982 | 2,690 | |||
| Rent from investment/letproperties | 28,845 | 27,900 | |||
| Net cash flow from Investing activities | 11,577 | 30,590 | |||
| Cash flow from financingactivities | |||||
| Net cash flow from financing activities | |||||
| Net increase/(decrease) in cash and cash equivalents | (4,789) | (14,656) | |||
| Cash and equivalents at 1 September 2022 | 420,999 | 435,654 | |||
| Cash and equivalents at 31 August 2023 | 416,209 | 420,999 | |||
| Analysis of cash and cash equivalents | |||||
| Cash at bank and in hand | 416,209 | 420,999 | |||
Reconcilation of net income/(expenditure) to net cash flow from operating activities
| Net Income/(expenditure) for theyear | 542,331 | (14,855) | ||
|---|---|---|---|---|
| Interest & dividends received | (13,982) | (2,690) | ||
| Rents received | (28,845) | (27,900) | ||
| Fixed Assets donated in | (465,000) | |||
| Depreciation of tangible assets | ||||
| (Gains)/losses monetaryinvestments | 1,784 | 2,816 | ||
| Decrease/(increase)in debtors | 5,905 | (7,624) | ||
| Decrease/(increase)in Loans | 13,000 | 11,000 | ||
| (Decrease)/increase in creditors | (10,853) | 4,301 | ||
| (Decrease)/increase inprovisions | (60,705) | (10,295) | ||
| Net cash flow from operating activities | (16,366) | (45,246) |
Page 4 of 30
THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT
Notes to the accounts for the year ending 31 August 2023
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.
v This clause is intentionally blank
vi Going concern
Based on the monetary assets and human resources available at 31 August 2023, 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 5 of 30
THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT
Notes to the accounts for the year ending 31 August 2023
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 6 of 30
THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT
Notes to the accounts for the year ending 31 August 2023
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 7 of 30
THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT Notes to the accounts for the year ending 31 August 2023
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 8 of 30
THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT
Notes to the accounts for the year ending 31 August 2023
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 9 of 30
THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT
Notes to the accounts for the year ending 31 August 2023
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 21a Future instalments of grant 21b Grant instalments provisions released 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 2021-22 |
|---|---|---|---|
| General Circuit Model Trust Designated |
Restricted Endowment |
||
| £ £ £ |
£ £ |
£ 2,690 13,800 382,320 2,768 |
|
| 1,536 0 |
1,153 | ||
| 13,800 | |||
| 382,320 | |||
| 2,768 | |||
| 397,656 0 |
2,768 1,153 |
401,578 | |
| 397,656 0 |
2,768 1,153 |
401,578 | |
| 14,100 | 14,100 | ||
| 411,756 0 |
2,768 1,153 |
415,678 | |
| 20,395 7,500 (17,795) 252,638 78,681 4,753 78,016 3,529 |
|||
| 19,795 | 600 | ||
| 7,500 | |||
| (17,795) | |||
| 247,518 5,120 |
|||
| 29,586 46,481 |
2,613 | ||
| 4,585 0 |
167 | ||
| 78,016 | |||
| 3,208 321 |
|||
| 362,913 9,500 51,922 |
3,213 167 |
427,716 | |
| 48,844 (9,500) (51,922) |
(446) 986 |
(12,038) | |
| (2,816) | (2,816) | ||
| 48,844 (19,795) (51,922) |
(446) (1,830) |
(14,855) | |
| (0) | |||
| (48,692) 11,000 37,199 |
1,465 (972) |
||
| 38 Net movement in funds | 152 (8,795) (14,723) |
1,019 (2,802) |
(14,855) |
| 39 Total funds brought forward | 2,155,472 | ||
| 1,968,169 24,112 95,598 |
8,864 58,730 |
||
| 50 Total funds carried forward | 1,968,321 25,611 80,875 |
9,883 55,927 |
2,140,617 |
Page 10 of 30
THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT
Notes to the accounts for the year ending 31 August 2023
3.2 Balance Sheet as at 31 August 2022
| 3.2 Balance Sheet as at 31 August 2022 | ||||||
|---|---|---|---|---|---|---|
| Fixed Assets | Unrestricted Funds | Restricted & Endowment Funds |
Totals 2022 | |||
| General | Circuit Model Trust |
Designated | Restricted | Endowmen t |
||
| £ | £ | £ | £ | £ | £ | |
| Circuit Manses & Equipment | 1,493,131 | 1,493,131 | ||||
| Investmentproperties | 350,000 | 350,000 | ||||
| Investments | 0 | 42,013 | 42,014 | |||
| Totalfixed assets | 1,843,131 | 42,013 | 1,885,145 | |||
| Current Assets | ||||||
| Debtors | 26,486 | 2,768 | 29,254 | |||
| Loans bythe Circuit | 19,000 | 19,000 | ||||
| Trustees for Methodist Church Purposes | 19 | 13,914 | 13,933 | |||
| Central Finance Board Deposits | 175,992 | 71,422 | 140,875 | 7,115 | 395,404 | |
| Cash at Bank and in hand | 11,661 | 11,661 | ||||
| Total current assets | 233,139 | 71,441 | 140,875 | 9,883 | 13,914 | 469,252 |
| Creditors(due in under 1year) | 107,950 | 107,950 | ||||
| Grant instalments due in 2020-21 | 16,205 | 60,000 | 76,205 | |||
| Net current assets/liabilities | 125,189 | 55,236 | 80,875 | 9,883 | 13,914 | 285,097 |
| Total assets less current liabilities | 1,968,321 | 55,236 | 80,875 | 9,883 | 55,927 | 2,170,242 |
| Creditors and Accruals including any loans (due after more than 1year) |
||||||
| Grant instalments due after 2020-21 | 29,625 | 29,625 | ||||
| Net assets | 1,968,321 | 25,611 | 80,875 | 9,883 | 55,927 | 2,140,617 |
| Funds of the Circuit | ||||||
| General Fund(Unrestricted) | 1,968,321 | |||||
| Circuit Model Trust Fund(Unrestricted) | 25,611 | |||||
| Designated Funds(Unrestricted) | 80,875 | |||||
| Total Unrestricted Funds | 2,074,807 | |||||
| Restricted Funds | 9,883 | 9,883 | ||||
| Endowment Funds | 55,927 | 55,927 | ||||
| Total Funds | 1,968,321 | 25,611 | 80,875 | 9,883 | 55,927 | 2,140,617 |
Page 11 of 30
THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT Notes to the accounts for the year ending 31 August 2023
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 | CMTF | Desig | Restricted | Endow | Total | 2022 | ||
|---|---|---|---|---|---|---|---|---|
| Letting Income: | ||||||||
| 18 Clarence Road | 14,010 | 14,010 | 13,800 | |||||
| Totals | 14,010 | 14,010 | 13,800 |
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 Eaton Bray Edlesborough Farley Hill Gravenhurst Harlington High Town Kensworth Leagrave High St Mount Pleasant Oakdale St Johns St Margarets Strathmore Ave The Square Toddington Trinity Wigmore **Total ** |
General CMTF Desig Restricted Endow Total 2022 12,548 12,548 11,948 8,104 8,104 7,716 17,772 17,772 16,924 12,720 12,720 12,112 7,092 7,092 6,752 10,652 10,652 10,144 7,384 7,384 7,028 20,180 20,180 19,216 21,812 21,812 21,340 7,852 7,852 7,476 32,332 32,332 31,872 7,761 7,761 9,856 16,968 16,968 16,780 28,044 28,044 27,780 26,112 26,112 25,568 14,316 14,316 13,632 57,364 57,364 56,060 16,948 16,948 16,140 58,292 58,292 57,844 6,176 6,176 6,132 |
|---|---|
| 390,429 390,429 382,320 |
Page 12 of 30
THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT Notes to the accounts for the year ending 31 August 2023
Note 6 Capital Receipts
Capital Receipts relate to the requirement for the Circuit to take Managing Trustee responsibilty for any church which ceases to worship and closes. During the Year Luton Road Church and Mount Pleasant church were two such cases. The value of the capital receipts for each is determined from the likely sale value as advised in a Qualified Surveyor's Report as required by the Charities Act.
The relative values are:
Luton Road £185,000 Mount Pleasant £ 280,000
(2021/22 - £Nil)
| Capital Receipts (closed churches) CPF Levy on Property Sales Selling Agents Fees Legal Fees Surveyors Fee GPF Reclaimed Grants Totals |
General CMTF Desig Restricted Endow Total 2022 465,000 465,000 |
|---|---|
| 465,000 465,000 |
|
| General CMTF Desig Restricted Endow Total 2022 1,940 1,940 2,768 |
|
| Note 7 Grants Receivable | |
| Connexion District Model Trust Fund Other Grants CMTF re Covid Assess Relief Luton Road Church Closing Bal |
|
| 1,940 1,940 2,768 |
|
| General CMTF Desig Restricted Endow Total 2022 14,835 14,835 14,100 |
|
| Note 8 Other Income | |
| Circuit Quiz Printing for Churches Rent arrears paid Balances from closed churches Rental Income Bolingbroke Road |
|
| 14,835 14,835 14,100 |
Page 13 of 30
Notes to the accounts for the year ending 31 August 2023
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
| Grantee/Donee Agreed Paid External Paid Internal Tfr Carried forward Connexional Funds Totals Grantee/Donee Agreed Paid External Paid Internal Tfr Carried forward Circuit Churches Circuit Worker 15,000 15,000 Toddington (Mission Enabler) Farley Hill Barton Olive Tree Youth Worker Houghton Regis Project Covid Assess Relief Totals 15,000 15,000 Grantee/Donee Agreed Paid External Paid Internal Tfr Carried forward Training (Assessment Relief) Malzeard Road Garage Conversion Assess EQ released Totals Grantee/Donee Agreed Paid External Paid Internal Tfr Carried forward Benevolent Education & Youth 946 (446) 500 Totals 946 (446) 500 Grantee/Donee Agreed Paid External Paid Internal Tfr Carried forward Ecumenical Community Worker Olive Tree Community Worker Youthcape Worker Totals This Year New This Year New This Year New This Year New This Year New |
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 (2,500) (13,705) (16,205) |
Grand Total |
|
| 15,000 15,000 |
15,000 7,500 (2,500) 5,000 38,330 (13,705) 24,625 |
(2,500) (13,705) |
||
| 45,830 (16,205) 44,625 |
(16,205) | |||
| 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 (60,000) (60,000) |
Grand Total (60,000) |
|
| 60,000 (60,000) |
(60,000) | |||
| This Year New | Restricted | |||
| Agreed Paid External Paid Internal Tfr Carried forward 946 (446) 500 |
Unpaid brt fwd Paid this year Ext Paid Internal Tfr Carried forward 500 |
Total Paid Ext Total Paid Int Tfr (446) (446) |
Grand Total (446) |
|
| 500 | (446) | |||
| 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 14 of 30
THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT Notes to the accounts for the year ending 31 August 2023
Note 10 Stipends and Salaries and Associated Costs
Stipends
Stipends were paid to 6 Presbyters [5.75 fte] (2021-216 [5.49 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 2022 13,095 1,593 14,688 14,688 14,021 36,218 5,433 41,651 41,651 39,943 137,333 20,197 157,530 157,530 151,070 322 322 322 44 3,407 640 4,047 4,047 3,655 5,919 437 6,357 6,357 4,753 880 176 1,056 1,056 1,026 5,120 |
|---|---|
| 197,174 28,477 225,651 225,651 219,632 |
The Circuit employs lay staff involved in both Administration and Mission work. The costs of these staff are shown below in their separate categories.
| Administration Staff | Bursar Admin PA 233 10,760 5,143 2,550 Part Time |
General CMTF Desig Restricted Endow Total 2022 233 233 199 15,903 15,903 20,758 2,550 2,550 |
|---|---|---|
| Nat Ins Salary & Allowances Travel Other Expenses Ex Gratia for Stand In Volunteer Contracted Hours (pw) |
||
| 10,993 7,693 |
18,686 18,686 20,957 |
|
| 15 20 n/a Part Time Circuit Workers x1 585 12,790 644 480 |
General CMTF Desig Restricted Endow Total 2022 585 585 16 12,790 12,790 9,286 644 644 806 480 480 960 |
|
| Mission Staff | ||
| Nat Ins Pension Conts Salary Sundry Expenses Telephone Travel IT Allowances Contracted Hours (pw) Apprenticeship Levy |
||
| 14,498 | 14,498 14,498 11,068 |
|
| 943 943 982 |
||
| 259,779 259,779 252,638 |
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 15 of 30
THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT
Notes to the accounts for the year ending 31 August 2023
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 £9,859 (being one quarter of a single standard stipend plus National Insurance, Pension and other normally incurred expenses
| 2022 | ||
|---|---|---|
| £ | £ | |
| Stipends of Presbyters[6 actual (5.75 fte)] | 157,530 | 151,070 |
| Employer's National Insurance contributions | 14,688 | 14,021 |
| Employer's pension contributions to a defined benefit pension scheme | 41,651 | 39,943 |
| Total cost | 213,870 | 205,034 |
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 Worker 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 (2021-22: 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 (2021-22: £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 16 of 30
THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT Notes to the accounts for the year ending 31 August 2023
Note 11 Property Expenses
The Circuit is Managing Trustee for 7 manses (2021-22 -7 ) and 1 (2021-2- 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 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 1,481 2,968 347 451 485 2,515 487 542 |
General CMTF Desig (Manses) Restricted Endow Sub Total Repairs Maint Improve Total 2022 1,481 1,481 4,135 3,766 4,459 8,225 6,769 485 2,797 3,282 1,022 3,544 2,563 6,107 9,777 445 276 721 615 3,699 2,384 6,083 6,626 2,627 1,959 4,586 2,933 4,241 995 5,237 30,180 4,100 736 4,836 5,030 |
|---|---|---|
| 445 | ||
| 2,581 372 747 2,052 413 162 3,206 445 591 2,671 473 956 |
||
| 15,992 3,466 1,481 3,449 |
24,388 16,170 40,558 67,088 |
|
| Agents Other Insurance 1,933 1,780 3,714 |
General CMTF Desig Restricted Endow Total 2022 1,933 1,933 2,081 1,780 1,780 1,692 |
|
| 3,714 3,714 3,773 |
||
| Rent Utilities Others 900 |
General CMTF Desig (Quinns) Restricted Endow Total 2022 900 900 500 2,886 2,886 4,572 3,902 3,902 2,613 135 |
|
| 900 | 900 2,886 3,902 7,688 7,820 |
|
| Property Totals | 29,002 19,056 3,902 51,960 78,681 |
Page 17 of 30
THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT
Notes to the accounts for the year ending 31 August 2023
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) Payroll Accounting Software Subscription Plan Making Software Subscription Totals |
General CMTF Desig Restricted Endow Total 2022 570 570 466 229 229 436 1,500 1,500 450 604 604 907 39 39 1,759 52 52 104 243 243 243 159 159 167 0 186 186 220 480 480 135 135 58 58 |
|---|---|
| 4,096 159 4,255 4,753 |
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 2022 15,990 15,990 15,812 63,614 63,614 62,204 0 0 |
|---|---|
| 79,604 0 79,604 78,016 |
|
| General CMTF Desig Restricted Endow Total 2022 1,715 1,671 1,671 1,191 1,191 931 19 1,208 1,227 320 448 448 522 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 |
|
| 3,329 1,208 4,537 3,528 |
Page 18 of 30
THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT
Notes to the accounts for the year ending 31 August 2023
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 2022 (1,673) (1,673) (2,640) (112) (112) (176) |
|
|---|---|
| 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 | |
| (1,784) (1,784) (2,816) |
Note 15a Property Disposals/Revaluations
The net gains or losses are detailed below.
Details Carrying Sale Reval Gain (Loss) 2022
Page 19 of 30
THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT
Notes to the accounts for the year ending 31 August 2023
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.
-
£10k has been transferred from the Training Fund to the Assessment Equalisation Fund. This is in anticipation of the resultant balance of the Equalisation Fund being transferred to General Reserves in 2023/24
| 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 3,250 (3,250) (3,400) 3,400 (500) (9,500) (10,000) (3,800) 3,800 (500) 500 1,268 (1,268) 10,000 10,000 (13,000) 13,000 231 (231) 12,000 (12,000) |
|---|---|
| (5,719) 13,000 (7,550) 1,768 (1,499) |
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 2022 |
|---|---|
| General CMTF Desig Restricted Endow Total 2022 |
|
| Note 18 Other Gains or Loses | |
| Are tabulated below | |
| Details Totals |
|
Page 20 of 30
Notes to the accounts for the year ending 31 August 2023
THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT
Note BS1 Manses & Other Property
Buildings comprise of 7 (7 - 2022) manses located in Luton, Dunstable, Toddington and Leighton Buzzard .
Investment Properties are 1 manse ( 2022 - 1 at 18 Clarence Road) at 18 Clarence Road.
During the year a garage conversion was complted at 18 Malzeard Road. Construction and professional fees amounted to £31,250 and these have been capitalised, hence the increase in value.
In addition the churches at Luton Road (£185,000) and Mount Pleasant (£280,000) were brought under Circuit ownership/control. This and the Malzeard Road capitalisation results in the "Additions" figure of £496,250
The two churches mentioned as being brought under Circuit ownership/control, were professionally valued by Jackson-Stops for the purposes of establishing their capital value as reported within these financial statements. Since the end of the year both churches have been marketed for sale and offers received in excess of their valuations. Whilst the respective sales are yet to complete, after due regard to Connexional Levies that will be payable on the sale proceeds, the trustees are currently confident that the valuations cited represent a minimum likely net return to the Circuit
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 |
Land Buildings Plant, machinery and motor vehicles |
Land Buildings Plant, machinery and motor vehicles |
Fixtures, fittings and equip't Assets under Construction Total |
|---|---|---|---|---|---|
| £ £ £ |
£ £ |
||||
| 1,493,131 | 5,707 1,498,838 |
||||
| 496,250 | 496,250 | ||||
| 1,989,381 | 5,707 1,995,088 |
||||
| 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 |
N/A | N/A | SL | SL | |
| 3 YEARS | |||||
| 5,707 5,707 |
|||||
| 5,707 5,707 |
|||||
| 1.3 Net book value | |||||
| Brought forward Carried forward Schedule Of Manses, Investment Property & Churches Closed for Worship |
1,493,131 | 1,493,131 | |||
| 1,989,381 | 1,989,381 | ||||
| Value 232,017 232,000 276,424 182,336 178,215 204,999 218,390 185,000 280,000 1,989,381 |
|||||
| 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 Luton Road church Mount Pleasant church Property |
Value | ||||
| 232,017 | |||||
| 232,000 | |||||
| 276,424 | |||||
| 182,336 | |||||
| 178,215 | |||||
| 204,999 | |||||
| 218,390 | |||||
| 185,000 | |||||
| 280,000 | |||||
| 1,989,381 |
Page 21 of 30
THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT Notes to the accounts for the year ending 31 August 2023
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 Managed Equity 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 (£) 5.02800 n/a |
Price (£) 5.02800 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 |
2022 | |
| £ | £ £ £ £ |
|||
| 2C100 - No Units 2C120 - No Units 2C122 - No Units |
7,500 501 |
8,001 | ||
| 2C100 2C120 2C122 2C110 |
37,710 2,519 40,229 |
40,229 | 42,013 | |
| 19 | 37,710 2,519 40,229 7,721 4,945 1,271 13,937 |
40,229 13,956 |
42,013 13,933 |
|
| 19 | 7,721 42,655 2,519 1,271 54,166 |
54,185 | 55,947 |
BS3 Debtors & Prepayments
With the exception of items marked thus (*) all sums shown as Debtors at 1 September 2022 were received during the following year. All sums paid in advance at 1 September 2022 were for activities that have been held during 2022-23. Similarly, it is expected that payments in advance at 1 September 2023 will be expensed in 2023-24
| 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 2022 |
|---|---|
| 2,768 31 31 4,800 19,226 19,226 17,890 3,979 3,979 3,652 113 113 144 |
|
| 23,349 23,349 29,254 |
Page 22 of 30
Notes to the accounts for the year ending 31 August 2023
THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT
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 £ 12,000 7,000 |
Additions £ |
Repaid this year Balance Carried Forward £ £ 6,000 6,000 7,000 |
|
|---|---|---|---|---|---|---|
| 19,000 | 13,000 6,000 |
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 2022 |
|---|---|
| 149,668 74,922 164,575 7,615 396,779 395,404 |
|
| 61,841 (6,705) (49,396) (312) 5,428 11,615 46 46 46 |
|
| 61,887 (6,705) (49,396) (312) 5,474 11,661 |
|
| 211,555 68,217 115,179 7,303 402,254 407,065 |
BS6 Creditors, Accruals and Income in Advance
It is expected that all sums accrued at 31 August 2023 will be paid during the year to 31 August 2024
| Income in Advance Assessments in advance Letting Income District Grant - HRCDC Creditors and Accruals Ministers' & Staff expenses Insurance Other Expenses Office Rent Others Preaching Fees & Expenses Stipends, Pension, NI Taxation and Social Security Other Prepayments Totals |
General CMTF Desig Restricted Endow Total 2022 |
|---|---|
| 89,222 89,222 98,254 945 945 1,200 2,919 2,919 2,915 543 162 704 783 3,652 2,100 2,100 992 900 900 49 49 241 16 258 154 |
|
| 96,919 178 97,097 107,950 |
BS6a Grants payable in next financial year
Page 23 of 30
THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT
Notes to the accounts for the year ending 31 August 2023
| 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 2022 |
|---|---|
| 31,295 500 31,795 76,205 |
|
| 31,295 500 31,795 76,205 |
|
| Accrued at 1 Sept 22 Paid in year Accrual made in year Accrued at 31 Aug 23 98,254 (98,254) 89,222 89,222 783 (783) 704 704 3,872 (3,872) 886 (886) 3,307 3,307 1,200 (1,200) 945 945 40 (40) 2,915 (2,915) 2,919 2,919 107,950 (107,950) 97,097 97,097 |
Page 24 of 30
THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT Notes to the accounts for the year ending 31 August 2023
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]
| [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 2023 |
General CMTF Desig Restricted Endow Total |
| 15,000 15,000 29,625 500 30,125 |
|
| 44,625 500 45,125 |
| Grants payable by year 2023-24 2024-25 2025-26 2026-27 2027-28 Total anticipated future commitment |
General CMTF Desig Restricted Endow Total |
|---|---|
| 31,295 500 31,795 13,330 13,330 |
|
| 44,625 500 45,125 |
|
| 31-Aug-23 2022 2,483,367 1,968,321 |
|
| 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-23 | 2022 | ||
| Balance | 23,611 | 25,611 |
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 25 of 30
THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT
Notes to the accounts for the year ending 31 August 2023
BS8.3 Designated Funds 31-Aug-23 2022 Balance 115,001 80,875
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-23 | 2022 | |
|---|---|---|
| Restricted Funds Balance | 6,803 | 9,883 |
| Endowment Funds Balance | 54,166 | 55,927 |
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 2022 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 2023 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 |
|---|---|
| 9,883 55,929 65,811 1,521 1,521 (446) (446) (1,784) (1,784) (3,902) (3,902) (500) (500) 1,768 (1,499) 269 |
|
| 6,803 54,166 60,969 |
|
40,229 40,229 13,937 13,937 7,303 7,303 (500) (500) |
|
| 6,803 54,166 60,969 |
Page 26 of 30
Notes to the accounts for the year ending 31 August 2023
THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT
BS10 Summary of fund movements
| Fund | Balance at 01/09/2022 Income Expenditure Transfers Grant Provisions [Net] Gains / Losses Balance at 31/08/2023 £ £ £ £ £ £ |
|---|---|
| General | 1,968,321 896,574 (375,810) (5,719) 2,483,367 |
| Circuit Model Trust | 25,611 1 (16,205) 13,000 1,205 23,611 |
| Total unrestricted and undesignated | 1,993,932 896,575 (392,015) 7,281 1,205 2,506,978 |
| Manses Ministers Training Quins Assessment Equalisation Lay Workers Salary Total designated |
32,716 1,940 (16,170) (3,250) 60,000 75,236 3,651 3,400 7,051 22,860 (1,208) (9,500) 12,152 (222) (2,886) 3,800 692 9,870 10,000 19,870 12,000 (12,000) |
| 80,875 1,940 (20,264) (7,550) 60,000 115,001 |
|
| Total unrestricted | 2,074,807 898,515 (412,279) (269) 61,205 2,621,979 |
| Benev (Local) Drama (Local) Educn & Youth (Local) Luton Road Mount Pleasant Total Restricted |
5,339 1,268 6,607 818 818 3,571 (446) 500 (500) 3,126 154 (3,132) (2,978) (770) (770) |
| 9,883 (4,348) 1,768 (500) 6,803 |
|
| Chapel St Trust 18819 Lye Bequest for Poor Trust 3488 Lye Bequest Trust 5719 Circuit Music Fund Trust 16407 Total Endowment |
7,729 245 (22) (231) 7,721 44,333 1,319 (126) (1,198) (1,673) 42,655 2,631 78 (8) (70) (112) 2,519 1,235 40 (4) 1,271 |
| 55,928 1,681 (159) (1,499) (1,784) 54,166 |
|
| Total Restricted and Endowment Total of all funds |
65,810 1,681 (4,507) 269 (500) (1,784) 60,969 |
2,140,617 900,196 (416,786) 0 60,705 (1,784) 2,682,948 |
BS11 Analysis of net assets between funds
Fund balances at 31 August 2023 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 2022 |
|---|---|
| 1,989,381 1,989,381 1,493,131 350,000 350,000 350,000 0 40,229 40,230 2,520 240,904 68,236 115,179 7,303 13,937 445,559 32,956 (96,919) (31,295) (178) (500) (128,892) (16,295) (13,330) (13,330) (31,535) |
|
| 2,483,367 23,611 115,001 6,803 54,166 2,682,947 1,830,776 |
Page 27 of 30
THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT
Notes to the accounts for the year ending 31 August 2023
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-23 £ £ £ £ 700 (700) 449 (449) 400 (400) 200 (200) 150 (150) 464 (464) 605 (605) HRCDC Charity Ann Grant 7,000 (7,000) |
|---|---|
| 9,968 (9,968) |
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-23 |
|---|---|---|---|---|---|---|---|---|
| £ | £ | £ | £ |
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 28 of 30
THE SOUTH BEDFORDSHIRE METHODIST CIRCUIT
Notes to the accounts for the year ending 31 August 2023
BS15 Capital commitments and contingent liabilities
Nil (2021/22 £60,0000)
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 £900 was made during the year (2021/22- £600) to cover heating and lighting costs
In addition there are short term obligations as follows:
Telephones at the Circuit manses
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 29 of 30
South Bedfordshire No 34/04
Name of Circuit :
Declarations and Scrutiny
I confirm that these accruals-based accounts for the year to 31 August 2023 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 2023
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 2023 were presented to the Circuit meeting held on: 20 February 2024
Signature of the Chair of the meeting: Rev Patrick Kandeh
Name of the Chair of the meeting: Rev Patrick Kandeh Date 20 February 2024
Independent Examiner’s Report follows on the next page