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2020-08-31-accounts

The Salisbury Methodist Circuit (Registered Charity no 1134362)

Trustees’ Report And

Financial Statements

For the year ending 31 August 2020

SALISBURY METHODIST CIRCUIT TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 AUGUST 2020

Introduction

The Circuit, of 9 churches, (supporting 11 congregations) spans the land of the five rivers around the fine cathedral city of Salisbury . From the rugged beauty of Salisbury plain in the north, to the picturesque surroundings of the New Forest National Park in the south, we are blessed with the everpresent reminder of Gods power of creation.

The vision of the Salisbury Methodist Circuit is to know for ourselves and to share the Good News of God’s love in Jesus by encouraging and enabling the people and churches of the Circuit to serve their communities and the wider world.

We will do this by:-

Review of the year

September 2019 saw a changed pattern of Presbyteral oversight as we relieved three supernumerary ministers of some of the work load with which they had been voluntarily supporting the Circuit

We supported churches through the sabbatical of one presbyter in the last quarter of 2019. In early 2020 we adapted further to cover the long-term sick leave of another presbyter. We gratefully acknowledge the support of a supernumerary presbyter from a neighbouring circuit who is serving as Acting Superintendent Minister. In addition a presbyter working part time has worked increased hours.

During the summer of 2019 we planned for the closure of our chapel at Downton ensuring that all members of the congregation continued to receive pastoral support. In the autumn the District Synod approved the closure resulting in the sale of the property being completed in Spring 2020.

In November 2019 we organised Advanced Safeguarding Training for those requiring training at this level.

From March 2020 we, like all Methodist Circuits, needed to adapt to the Covid 19 lockdown and the closure of churches for public worship. This also impacted our community café and other community support activities in which our churches were engaged. Since then we have provided

This work will continue through 2020/2021 as we work to provide limited on line access to those of our members who wish to access worship this way but currently lack the facilities to do so.

We have continued to remunerate those lay employees for whom there has been no work during the period of church closures using support from the Government’s Job Retention Scheme

Financial Review

Circuit income is primarily drawn from the assessment paid by the circuit churches and the sums contributed have been sufficient to meet the set budget. Our budget allowed for the receipt of rental income from 2 manses which are currently not needed to house presbyters. Stipend expenditure has increased each financial year in line with conference approved increases and our lay employees are paid not less than the ‘living wage’ and at a rate that is at least comparable with other salaries in the area for work of a similar nature.

We have encountered a bad debt situation involving the tenants of one of our rented properties. While the situation has been resolved for the future we have written off a bad debt of £6,000.

In the 2019/2020 accounts:

88% of our income (excluding capital receipts) was provided by the local churches. 59% of expenditure was on pay and related costs

16% of expenditure was our contribution to the District, of which part is used to fund the work of the wider Methodist Church

14% of expenditure was on property.

Fund balances

As at 31 August 2020 the net current assets of the Circuit’s general and designated fund were £67k, giving approximately 3.6 months cover for expenditure.

Plans for 2020/2021

Circuit financial plans for the coming year have been prepared on the basis that there will be 3.4 full time ordained staff with anticipated cost of living stipend increases. Having taken into account small savings in other area we had planned to leave the assessment against churches unchanged for a third year. However, in recognition that all churches have lost financial income due to the Covid 19 closure we have reduced the assessments on churches by 15% and will draw down from the Circuit Model Trust Fund to cover the shortfall.

Basis of preparation and legal framework

The Charity’s annual report and accounts for the year ended 31 August 2020 have been prepared in accordance with the Charities Act 2011 and the Charities: Statement of Recommended Practice 2015 as applicable to the Financial Reporting Standard (FRS)102

Full Name of Charity: Salisbury Methodist Circuit Registration Charity Number: 1134362 Date of registration: 17 February 2010

Main communication address: Bower Haven, Mount Pleasant, Stoford,Salisbury, SP2 0PP

The members of the Salisbury Methodist Circuit meeting are the Charity Trustees, membership being made up of circuit office holders, ministers and representatives appointed by the local churches. Full membership is shown as Appendix A to this report.

Circuit Ministers and officers

Active Circuit Ministers Rev Bryan Coates (Acting Superintendent) Rev David Hookins Rev Steve Hawkes Rev Paul Rees Rev Anna Bishop Circuit Stewards Mr Ian Hardy Mr Robert Taylor Mr Nigel Thorne Mrs Jacqueline Weddell Mrs Fiona Sherman

Administrator: Mrs Claire Rankine

Mr Ian Hardy acted as the principal officer overseeing the day to day financial management and accounting for the circuit during the year.

Independent examiner: Mrs Hilary Thorne MAAT 61 Lindford Road, Salisbury, SP1 3WX

Investment Bankers: Central Finance Board of the Methodist Church. Trustees for Methodist Church purposes

Bankers: CAFBank Ltd Solicitors: Batt Broadbent Ltd

Salisbury Circuit Aims and organisation

Charity objective is to act as a Resource provider within the area around Salisbury for the Methodist Church:

"The purposes of the Methodist Church are and shall be deemed to have been since the Date of Union the advancement of:

Public Benefit:

We confirm the trustees have had regard to the Charity Commission’s guidance on public benefit.

Structure, Governance and Management

The governing document for the circuit is the Deed of Union (1932) and Methodist Church Act (1976)

Detailed governance arrangements are outlined within the Constitutional Practice and Discipline of the Methodist Church by order of the annual conference (CPD).

Day to day management of the circuit is undertaken by the Circuit Leadership team along with the Local Preachers meeting.

Trustee Training:

A range of guidance produced by Methodist Connexion to support the effective running of the circuit, specifically the leaflet ‘The Role of a Trustee in The Methodist Church’ is given to all new Circuit meeting members as induction to their role as trustees.

Related Parties:

"The Circuit is part of the Southampton District and is also accountable to the Methodist Conference.

The following Methodist Churches are linked to the circuit: Amesbury, Bemerton, Bourne Valley, Fordingbridge, Salisbury, Sandleheath, Shrewton, Winterslow (incorporating Pitton), Woodfalls.

Any other specific organisations with specific linkage: Wellow Wood Chapel

Risk Management

Major risks have been identified and recorded by the Leadership Team with professional advice taken as required.

There is a regular annual review process undertaken and recorded.

Income and Expenditure is being monitored in total and is compared with the approved annual budget on a half yearly basis to detect trends as part of the risk management process to avoid unforeseen calls on congregations

Safeguarding

Every person has a value and dignity which comes directly from the creation of male and female in God’s own image and likeness. Christians see this potential as fulfilled by God’s re-creation of us in Christ. Among other things this implies a duty to value all people as bearing the image of God and therefore to protect them from harm.

Methodist Connexional practice outlines commitment to the following principles:

The Salisbury Circuit commits itself to ensuring the implementation of Connexional Safeguarding Policy; government legislation, guidance and safe practice in the circuit and in the churches.

The Salisbury Circuit commits itself to the provision of support, advice and training for lay and ordained people that will ensure people are clear and confident about their roles and responsibilities in safeguarding and promoting the welfare of children and adults who may be vulnerable.

Reserves Policy

The Reserves Policy for the Circuit is to hold a minimum sum equivalent to 3 months’ average expenditure plus a manse maintenance reserve of £20,000 This should be sufficient to meet any unforeseen item of major expenditure on manses and / or to be able to continue, in the short term, funding planned activities in the event of any inability to raise the full Circuit Assessment from churches.

Tasks for the year 2020/2021:-
Name of Circuit: Salisbury Circuit No: 26/12
Statement of Financial Activities (SOFA) for the year ended 31 August 2020
Notes to
the
accounts
General Fund
(Unrestricted)		 Circuit Model
Trust
(Unrestricted)		 Designated
Funds
(unrestricted)		 Restricted
Funds		 Endowment
Funds
Total
2019-20
£ £ £ £ £ £
Income
1 Donations and legacies 0
2 Income from monetaryinvestments 466 1,044 1,510
3 Income from investmentproperties 3 13,920 8,067 21,987
4 Assessments on Churches 4 188,623 188,623
5 Capital Receipts 5 89,096 89,096
6 Grants received 6 486 486
7 Other charitable income 7 147 1,447 1,594
8Total income 203,156 90,140 10,000 - - 303,296
Expenditure
9 Grants and donations 8 18,000 18,000
10 Salaries and associated costs 9 143,688 143,688
11 Propertymaintenance 10 3,030 31,328 34,358
12 Connexional assessment & model trust levy 11 28,246 28,246
13 District Assessment & Levy 11 6,122 3,121 9,243
14 Depreciation 0
15 Office expenses 12 3,775 225 4,000
16 Other outgoings 13 1,771 2,369 4,140
17Total charitable expenditure 186,632 21,346 33,697 0 0 241,675
18 Gains/(losses)on monetaryinvestments 0
19 Gains/(losses)on investmentproperties
20Net income/(expenditure) 16,524 68,794 -23,697 0 0 61,621
21 Transfers between funds 20,000
-		 20,000 0
22 Othergains/(losses) 14 6,013
-		 -6,013
23Net movement in funds -9,489 68,794 -3,697 0 0 55,608
24 Total funds brought forward 52,590 112,419 27,420 192,429
25 Total funds carried forward 43,101 181,213 23,723 - - 248,037
Name of Circuit: Salisbury Circuit No: 26/12 Circuit No: 26/12
Balance Sheet as at 31 August 2020
Notes to the General Fund
(Unrestricted)		 Circuit Model
Trusts
(Unrestricted)		 Designated
Funds
(Unrestricted)		 Restricted
Funds		 Endowment
Funds		 Totals
2019/20		 Totals
2018/19
Accounts £ £ £ £ £ £ £
Fixed Assets
Circuit Manses & Equipment BS1 1,967,562 1,967,562 1,967,562
Investmentproperties BS1 557,438 557,438 557,438
Investments 0
Total fixed assets 2,525,000 0 0 0 0 2,525,000 2,525,000
Current Assets
Debtors BS2 10,073 10,073 13,467
Loans bythe Circuit 0
Investments with TMCP 181,213 181,213 112,419
Central Finance Board Deposits BS3 41,546 20,000 61,546 76,789
Cash at Bank and in hand BS3 16,099 3,723 19,822 17,692
Total current assets 67,718 181,213 23,723 0 0 272,654 220,367
Current liabilities
Creditors (due in under 1 year) BS4 24,617 24,617 27,938
Grantspayable within 2018-19 0
Total current liabilities 24,617 0 0 0 0 24,617 27,938
Net current assets/liabilities 43,101 181,213 23,723 0 0 248,037 192,429
Total assets less current liabilities 2,568,101 181,213 23,723 0 0 2,773,037 2,717,429
Long term liabilities
(due after more than one year)
Grantspayable after 2018-19 0 0
Loans to the Circuit 0 0
0 0
Net assets 2,568,101 181,213 23,723 0 0 2,773,037 2,717,429
Funds of the Circuit
General Fund(Unrestricted) 2,568,101 2,568,101 2,577,590
Circuit Model Trust Fund (Unrestricted) 181,213 181,213 112,419
Designated Funds(Unrestricted) 23,723 23,723 27,420
Total Unrestricted Funds 2,773,037 2,717,429
Restricted Funds 0 0
Endowment Funds 0 0
Total Funds 2,568,101 181,213 23,723 0 0 2,773,037 2,717,429

Signed

Ian V Hardy Circuit Treasurer

The Salisbury Methodist Circuit

Notes to the accounts for the year ending 31 August 2020

1. 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 (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective from 1 January 2015) – (Charities SORP (FRS 102)).

ii Public benefit entity

The Salisbury 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 stated otherwise 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 FRS102 SORP 2015

These accounts are compliant with FRS 102 and with the FRS 102 SORP 2015. The accounts have been prepared in accordance with applicable charity law in England this being the Charities Act 2011 and SI 2008/629 (Charities Accounting and Reporting Regulations) and, pending the making of replacement Regulations specific to SORP 2015 in accordance with Reg.8(4)(d) of SI 2008/629, the charity trustees have departed from the requirements of Reg.(8)(5) by following SORP (FRS102) instead of SORP 2005 to the extent necessary to give a true and fair view in the circumstances.

vi Going concern

Based on the monetary assets and human resources available at 31 August 2019, 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.

viii

Income recognition

Income is brought into the account when there is entitlement and amount is reliably measured 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:

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

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.

x

Grants

Grants made by the Circuit from its own funds are recognised in full at the time of the 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.

xi VAT

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

xii 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 historical cost representing each property’s gross carrying value as at 1 September 2015, being that property’s insurance reinstatement value as assessed by the representative of Methodist Insurance plc in 2010 and subsequently adjusted up to and including 31 August 2015 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 account 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 FRS 102, as outlined above.

xiii(a ) Monetary investments

The Circuit’s investments are in monetary assets classified as being financial instruments under FRS 102 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 20 below.

xiii(b ) Investment Property

From time to time the Circuit may hold residential property (formerly manses) which is surplus to its current staffing requirements. Where this is the case and it is anticipated that the property is unlikely to be used a manse within a period of two years, the property is classified as Investment Property (whether let out or not) and any lets are 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 Notes 4& 9 below

xiv 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 the amount advanced to theCircuit. 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.

xv Loans as Basic Financial Instruments

Where concessionary loans (i.e free of interest) are made to the Circuit to further its charitable purposes, and are repaid after more than one year, they are initially recognised as the amount paid, with the carrying value adjusted in subsequent years to reflect payment 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.

xvi Methodist Connexional Funds

The Methodist Church Connexion raises assessments against the Circuits and these are paid quarterly to their Districts. The Circuit raises assessments against the Churches in the Circuit. The District quarterly remits to the Methodist Church Fund most of the sum received from the Circuits. A small sum is retained by the District to meet its own costs. The Circuit may act as agent for ad hoc collections for various funds administered by The Methodist Church. These are detailed in Note 20 below.

xvii Funds

The trustees have adopted a policy for all unrestricted reserves.

xviii 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 hand of the ministers.

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 Churches and others by virtue of a role they undertake for the Circuit and/or their local Churches.

CLT (Circuit Leadership Team): A group (comprising mostly but not exclusively) of Circuit Trustees responsible for the day to day administration and policy formation of the Circuit. Generally, the CLT comprises the Presbyters and Deacons stationed within the Circuit and the Circuit Stewards.

CMTF: Circuit Model Trust Fund

Connexion: The Methodist Church in Great Britain 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: Personnel employed by the Circuit on generally accepted commercial employment terms.

MMPS: Methodist Ministers’ Pension Scheme.

Pensions Trust: The Pensions Trust, the organisation through which the Circuit arranges a pension scheme for its Lay Employees.

Presbyters (including Superintendent): Probationer or Ordained Ministers and/or Deacons who have pastoral and administrative responsibility for the Churches within the Circuit.

SOFA: Statement of Financial Activities.

SORP : Statement of Recommended Practice.

TMCP: Trustees for Methodist Church Purposes, the legal owner and Custodian Trustee of all Methodist Model Trust property, including legacies, Endowments and Accumulated Funds.

3 Income from Investment Property (SOFA 3)

The trustees have determined that the properties at 65 Winterslow Road, Porton and 7 Normandy Way, Fordingbridge are unlikely to be returned to use as manses in the foreseeable future and have therefore classified the same as Investment Properties. Letting income of £21,987 (£13,920 in the General Fund and £8,067 in designated funds) is shown gross of fees and commission.

4 Assessments on Churches (SOFA 4)

The Circuit comprises of 9 churches and each is assessed for a contribution to meet the overall net costs of the Circuit. In making its assessment account is taken of the voluntary giving received by each church and the average attendance at Sunday services. The initial assessment is then moderated to take account of local circumstances. In addition, a contribution is received from a church, not a member of the Methodist Connexion, which has declared an intent to preach Methodist doctrine and where the Circuit has agreed to provide a preacher for its Sunday worship. The Circuit aims to cover all its net core costs from the Assessment.

5 Capital Receipts (SOFA 5)

Net proceeds from the sale of Downton Methodist Chapel

6 Grants received (SOFA 6)

A grant of £486.00 was received from the District towards the cost of children and young people attending the Connexional residential youth event.

7 Other income (SOFA 7)

The collection of £147 at a Circuit Service was credited to our General Fund. Income under designated funds includes a donation towards the cost of children and young people attending the Connexional residential youth event, and £1,327 from activities at our outreach project. (see note 13b)

8 Grants and Donations (SOFA 9)

The Grants listed below were made during the year.

Grantee General
Fund
£		 Circuit Model
Trust Fund
£		 Purpose
Salisbury Methodist Church 9,000 Assist with employment costs of lay
family/outreach worker
Bemerton Methodist Church 9,000 Assist with employment costs of lay
outreach worker
Totals 18,000

9 Stipends, Salaries and Associated Costs (SOFA 10)

Stipends were paid to 4 Presbyters (3.4 fte) and a salary was were paid to 1 part time lay employee (0.6 fte)

General Fund 2019
Ministers £ £
Stipends 87,933 81,266
National Insurance Contributions 7,228 6,998
ApprenticeshipLevy 410 483
Pension Fund Contributions 22,396 19,959
Telephone & Broadband 2,553 2,638
Travelling 5,347 8,703
SundryExpenses 0 0
Sub Total 125,867 120,047
Lay Employees
Salaries 15,805 9,578
National Insurance Contributions 981 352
Apprentice Levy 87 52
Pension Fund Contributions 948 575
Telephone 0 0
Travelling 0 0
SubTotal 17,821 10,557
Total Stipends, salaries & related costs 143,688 130,604

No employees received employee benefits of more than £60,000. There is no accrual for holiday pay as it is immaterial. All staff are paid at or above the living wage.

Pension:

Most ordained presbyters are members of the Methodist Ministers’ Pension Scheme (MPPS). 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. The Connexion accounts for the MPPS and shows the figures in the annual Methodist Church in Great Britain accounts. The MPPS is in deficit but a plan for removal of the deficit has been proposed and is being implemented.

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 contribution scheme and Circuit contributes as employer to this scheme.

9a 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 are not disclosed here as HMRC does not regard this as a benefit-in-kind in the hands of the minister.

Payments to Trustees

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 although certain travelling and administration costs may be reimbursed in relation to specific projects.

The travel costs of Presbyters who attend CLT and Circuit Meetings is included within their overall travel expenses (see note 8) and is not separately determined.

10 Property Expenses. (SOFA 11)

The Circuit is Managing Trustee for 5 manses, 3 of which are occupied by ministers stationed in the Circuit. Two manses (65 Winterslow Road and 7 Normandy Way) are let on Assured Shorthold Tenancy. The Circuit is responsible for insurance of the properties and, with the exception of the let manses, Council Tax and water charges.

Total expenditure on property was £34,358

Expenditure on Manses

Manse Council
Tax		 Water Insurance Maintenance Fees
and
**Legal **		 Total 2019
1 Sycamore Drive 2,632 477 853 3,962 3,996
9 New Zealand Ave 2,861 712 3,485 7,058 3,797
76a Countess Road 2714 784 726 4,224 3,968
7 NormandyWay 0 0 5,231 4,582 9.813 10,536
65 Winterslow Road 0 0 2,786 3,485 6,271 4,459
Unallocated 2,671 2,671 2,571
8,207 1,973 2,671 13,081 8,067 33,999 29,327

Other property Expenses

£359 to maintain the Downton Chapel prior to completion of sale

11 Connexional and District Assessment and Levy (SOFA 12 & 13)

The District Assessment is calculated relative to the staffing (Presbyter and Mission staff only) of all Circuits in the Southampton District.

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

accounting year.
General CMTF Total 2019
District Expenses 6,122 6,122 6,842
Methodist Church
Fund		 28,246 28,246 32,266
Levyon CMTF 3,121 3,121 4,193
Totals 34,368 3,121 37,489 43,301

12 Office & Administration costs (SOFA 15)

Costs include those incurred by presbyters in respect of their home offices and those of other circuit office holders

General
£		 CMTF
£		 Total
£		 2019
Publications, including Conference
Minutes		 860 860 1,136
Furnishings 0 0 0
Postage 721 721 71
Stationery 1,672 1,672 978
Photocopier & Printing 48 48 111
Website and IT services 414 414 405
Bank charges 60 60 60
CMTF administration charge 225 225 268
Total 3,775 225 4,000 3,029

13 Other Outgoings (SOFA

13(a) General Fund

General 2019
PreachingFees & Travel 906 1,312
Training 415 30
Catering 170 476
Entertaining 80 145
Misc 200 75
Circuit musical 0 219
Total 1771 2,257

13(b) Designated Funds

13(b)(1) The Circuit runs an outreach project on a large housing estate, renting space in a community building for 2 half days per week. Costs are charged to a designated unrestricted fund set up several years to support mission and outreach initiatives.

Outgoings Designated
(unrestricted fund)		 2019
Rent 784 1,344
Equipment 95 369
Consumables 448 854
Printing& Advertising 27 83
Stagingseasonal events 175 115
Miscellaneous 0 100
Total 1,529 2,865
Income
Sale of refreshments 1,149 1,509
Donations 178 28
Total 1,327 1537

13(b)(2) The Circuit has funded the cost of attending 3 Generate (The Connexional Youth Weekend) for those children and young people who wish to attend

Outgoings Designated
(unrestricted fund)		 2019
Attendance fees 480 880
Travel costs 360 780
Total 840 1,660
Income
Grant from District 486 623
Donation 120 110
Total 606 733

14 Other gains(losses)

The Trustees have written off a bad debt of £6,013 arising from non-receipt of rent on one of the investment properties (see note 3). £3,398 of this had brought forward in the account for year ending 31 August 2019. The tenant is no longer in residence and has not been traced.

BS1 Manses and Other properties.

Buildings comprise 3 manses and 2 investment property.

Residential
Land		 Residential
Land		 Manses Investment
Property		 Investment
Property		 Plant,
machinery
& Motor
Vehicles		 Fixtures,
fittings &
equipment		 Total
£ £ £ £ £ £
Balance brought forward 1,183,836 783,726 557,438 0 0 2,525,000
Adjustment(+) 0
Revaluations(+/-)
Disposals(-)
Transfers(+/-)
Balance carried forward 1,183,836 783,726 557,438 0 0 2,525,000
**Accumulated Depre ** ciation
Basis N/A N/A N/A SL SL
Rate 3 Years
Balance brought forward 0 0
Depreciation charge foryear
Impairmentprovisions
Revaluations
Disposals
Transfers
Balance carried forward 0 0
Net Book Value
Brought forward 1,183,836 783,726 557,438 0 2,525,000
Carried forward 1,183,836 783,726 557,438 0 2,525,000

BS2 Debtors & Prepayments

It is expected that all sums shown as debtors at 1 September 2020 will be received during the following year. Similarly it is expected that payments in advance at 1 September 2020 will be expensed in 2020-2021

General Designated Total 2019
Debtors
Tenant (rent arrears) 0 0 3,398
Prepayments
Stipends,Pension NI 10,073 10.073 9,416
Otherprepayments 653
Totals 10,073 10.073 13,467

BS3 Central Finance Board (CFB) and Bank balances

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

General Designated Total 2019
Central Finance Board 41,546 20,000 61,546 76,789
CAFBank Ltd 16,099 3,193 19,292 16,309
Cash in Hand 30 30 190
Hamptons Int* 500 500 1,193
Totals 57,645 23,723 81,368 94,481

*Hamptons International are our letting agents for the Investment Property

BS4 Creditors, Accruals and Income in advance

It is expected that all sums accrued at 31 August 2020 will be paid during the year to 31 August 2021

Creditors General 2019
0
Assessments in advance 23,519 27,238
Unpaid expenses 1,098 700
Totals 24,617 27,938

BS5 Description of Funds

Unrestricted Funds

Unrestricted Funds
Balance at 31 Aug 2020 2019
General Fund 2,568,101 2,577,590

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 98% of this fund is held as freehold property being manses for the ministers and investment property and, from time to time, redundant chapels in the Circuit. No grants or donations were made from the General Fund during the year.

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

Balance at 31 Aug 2020 2019
Circuit Model Trust Fund 181,213 112,419

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 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 Trustees for Methodist Church Purposes to utilise these funds. Methodist Standing Orders 930, 931 and 917(2) are applicable.

Designated Funds

Designated Funds
Balance at 31 Aug 2020 2019
Manse Fund 7,241 10,503
Mission Fund 14,664 14,865
Youth Fund 1,818 2,052
Total 23,723 27,420

Manse - Receives an annual transfer from the General Fund and against this is charged routine maintenance, repairs, council tax, water charges and, as the need arises, refurbishment.

Mission – Established with rental income from investment properties and, by decision of the Circuit Trustees, has a cap of £20,000. It is available to provide seed funding for new mission and outreach initiatives within the Circuit. Youth – Receives an annual transfer from the General Fund as required. The purpose is to encourage activities for children and young people including attendance at District and Connexional youth events.

There are no restricted or endowment funds.

BS6 Related Parties

Related parties include the Methodist Connexion, The Southampton District and Churches within the Circuit, CFB and TMCP. All financial transactions with these related parties are reported in these accounts.

BS7 Agency Collections and Payments

The Circuit acts as agent in either collection or facilitation of the monies tabulated below. The sums sent to the Circuit by churches were remitted direct to the organisations or funds shown and do not appear elsewhere in these accounts.

Fund or Organisation Amount facilitated £
Methodist Church Fund forproperty 90
Methodist Church Mission in Britain Fund 550
Methodist Church World Mission Fund 524
Methodist ChurchFund for Support of Presbyters & Deacons 50
Methodist Ministers HousingSociety 150

BS8 Capital commitments and continent liabilities

There were no capital commitments or contingent liabilities at the year end.

BS9 Independent Examiner

The Independent Examiner examined the Circuit Accounts without charge and provided no additional services to the Circuit during the year.

Nan￿ of Circ#Jitr. Salisbury No 26112 Declarations and Scrutiny I confiTm that these accruals-based accounts for the year to 31 August 2020 have been prepared from the records of the Circuit and that they include all fijnds under the control of the Circuit meeting. Signature of treasurer ... Date 21 October 2020 Name and address of treasurer lan Hardy. Bower Haven, Mount Pleasant, Stoford, Salisbury Post CodeSP2 OPP Presentation to the Circuit meeting I confiTm Ihat the annual report and accounts for the year ended 31 August 2020 Wa￿￿111 be- presented to the Circuit meeting held on Signature of the Chair of the meeting Name of the Chair of the meetitYJ Independent Examinevs Report to the Trustees of the Salisbury Circuit Charity Number 1134362 Responsibilities and basis of report I report to the trustees on my examination of the accounts of the Salisbury Cir(yJf( for the yeai ended 31 August 2020. As the Circuit's trustees, you are responsible for the preparation of the accounts in accordan￿ with the requirements of the Chartties Act 2011 (Yhe Act'l. I report in respect of my examination of the Circuit's accounts carried out under section 145 of the Act and, in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission un(ler se¢Jion 145{51(b) of the Acl delete or circle as appropriate

Name of Circuit: Salisbury No: 26112 Independent Examiner's Statement The Circuit's gross income exceeded £250,000 and l am qualified to undertake the examination by being a qualified member of Association of Accounting Technicians I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination (other than that disclosed below") which give me cause to believe that in, any material respect= the accounting racords were not kept in accordance with section 130 of the Act. or the accounts do not accord with the accounting records.. or the accounts do not comply with the applicable requirements conceming the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fairf view, which is not a matter considered as part of an independent examination Delete if not applicable ie all R&P accounts the trustees, annual report is not consistent with the accounts Delete if not applicable ie all R&P accounts. I have no concems and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. I hayelhave not" obtained independent verificalion of all invesltnents with the Trustees for Methodist Church Purposes or held in other trusts. bank balances and funds at the Central Finance Board of the Methodist Church which are individually in excess of £10.000 {ten thousand pounds) at the balance sheet date. Signature of independent examiner Name of independent examiner Mrs Hilary Thome Relevant professional qualification of independent examiner MAAT Name of finn (where appropriate) NIA Address 61 Lindford Road. Bishopdown. Salisbury Post Code SP13WX Date 14 aoio delete or circle as appropriate September 2020

Appendix A

Salisbury Methodist Circuit Meeting Membership

Ministers: Revd. David Hookins (chair)
Revd. Bryan Coates (Acting chair)
Revd. Steve Hawkes
Revd. Anna Bishop
Revd. Paul Rees
Supernumerary Ministers: Revd. Cecil King
Revd. Christopher Jones
Revd. Margaret Jones
Revd. J Michael Franklin (until 31 August 2020)
Circuit Stewards: Mr Ian Hardy (Treasurer)
Mr Robert Taylor
Mrs Jacqueline Weddell
Mrs Fiona Sherman
Circuit Local Preachers &
Worship Leaders representatives: Mrs Valerie Liversidge
Mr Bernard Robert
Mr Malcolm Spencer
Circuit Appointed: Mrs Grace E Chick (Methodist Women in Britain)
Mrs Diana Nobel (Safeguarding Officer)
Mrs Dawn Heslington (Secretary)
Mr Nicholas Rutt (Circuit website manager)
Circuit Church Representatives:
Amesbury: Mr Rod Hopgood (from 25 March 2021)
Mrs Liz Rose (from 25 March 2021)
Mrs Gillian Cook (from 25 March 2021)
Bemerton: Mrs Janet Hardy
Mrs Moira Burton
Mrs Barbara Spencer
Bourne Valley: Mrs Joy Davey
Mr Brian Homer
Fordingbridge: Mrs Christine Jones
Miss Isabel Brown
Pitton: Mrs Sarah Sankey
Salisbury: Mr David Booth
Mrs Carolyn Clark
Mr Jim Gillings
Mrs Catherine O’Sullivan (until 31 August 2020)
Mrs Beverley Turner
Sandleheath: Mr Melvyn Clark
Mr Graham Nicholas (Until 31 August 2020)
Mrs Valerie Allpress (From 1 September 2020)

Shrewton: Mrs Sue Allway (Until 31 August 2020) Mrs Lilian M Foynes Mrs Dianne Robinson (From 1 September 2020) Winterslow: Mr Duncan Moody Mr Ivan Moody Woodfalls: Mr Graham Tanner Mrs Anita Tanner Mrs Muriel Dibden (From 1 September 2020)