2021-08-31-accounts - Berkshire and Hampshire Borders Methodist Circuit

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			Pages
Report ofthe Trustees			1-7
Report ofthe Independent		Auditors	8-10
Statement of Financial	Activities
Year ended 31August		2021	11
Year ended 31August		2020	12
Balance Sheet			13
Cash flow statement			14
Notes forming part of	the	Financial Statements	15-24

								E	E
Endowment funds
The income from these funds is applied capital is not available for use'		to ministry	within		the	Circuit, The			254,548
Restricted funds
Available for financing capital	schemes - Arthur Newbery			Trust'				220,742
Available for funding revenue	expenditure	as specified by		donors				14,454
									235,196
Unrestricted funds
Manse capital fund (equivalent to the value		ofmanse	and	investment			properties)		5,812,750
Circuit Model Trust Fund, schemes through grants*	for financing	churches'	property			and	mission		166,447
Funds available for financing	Circuit occasional expenditure:
Circuit development fund,	for training and mission projects							50,607
Youth work fund								2,500
Kentwood fund, for supporting churches		small building		schemes				12.973
									66,080
Funds for financing Circuit annual operating		expenditure
General funds, for all purposes								244,211
Manse maintenance fund,	for repairs, maintenance		and	refurbishment				48,434
									292,645
Total funds									6,827,666

9. Principal ris	9. Principal ris	ks	and uncertainties	and uncertainties
The major risks		to	which the Circuit is		exposed	have been identified by the Circuit Meeting and			are
listed	below. A	major risk		is defined as one that,			if realised	could fundamentally affect the way	in
which	the Circuit	o	crates orachieves its outcomes				in the next one to three ears.
	Risk					Evaluation		Commenta
A	Churches	cannot afford to pay			their	Moderate		The Circuit takes into account church
	assessments.		This	would affect the				income when setting assessments	on
	abili ofthe		Circuit to fund staffin					churches.
	The Circuit	cannot maintain residential				Low		Surveyors carry out inspections every
	properties to		appropriate standards					five years to assist planning repairs and
								maintenance. There is sufficient in	the
								Model Trust Fund for works needed	in
								the medium term
C	The Circuit	is unable		to fill stations	with	Moderate		There is a Connexional shortage	of
	presbyters,	deacons		or lay staff where				presbyters, and sometimes vacancies
	a ro riate.							cannot be filled immediatel
D	The Circuit		is unable	to attract circuit		Moderate		The Circuit is heavily dependent	on
	stewards and other office holders				with			such individuals and the time that they
	appropriate	skills and		expertise				commit to the Circuit's life and work.	At
								resent most osts are filled.
	Churches	are unable		to attract	office	Moderate		If churches cease to operate,	the
	holders with		suificient time, skills		and			Circuit may need to become managing
	expertise to		enable	them to continue				trustee for the site.
	o eratin

			Notes	Unrestricted	Unrestricted	funds	Restricted	Endowment	Total
				General	Designated		Funds	Funds	2021
				Funds		Funds
				6		6	6	6
INCOME AND ENDOWMENTS
Donations and legacies
Charitable income
Assessments on churches Other income Investments			4	449,850 431		30,243			449,850 30,674
LeNings income Investment income and	interest		3	7,259		93,624 832	110	135	93,624 8,336
Total income and endowments				457,540		124,699	110	135	582,484
EXPENDITURE
Charitable expenditure
Stipends, salaries and associated costs Assessments and levies			5 6	357,172 105,738		13.839			357,172 119,577
Manse running costs			7	-		74,432			74,432
Grants and donations			10	500		30,000	100		30,600
Administration and travel			8	23,264					23,264
Other outgoings			9	11,041		33,566			44.607
Raising funds
Investment management	costs			513		502	65	1,583	2,663
Total expenditure				498,228		152,339	165	1,583	652,315
Net incomel(expenditure) investment gains/losses	before			(40,688)		(27,640)	(55)	(1,448)	(69,831)
Investment realised & unrealised		gains/(losses)
Investment properties			15			191,250			191,250
Other			16				27,789	30,041	57,830
Net income/(expenditure) transfers	before			(40,688)		163,610	27,734	28,593	179,249
Transfers between funds				ee,eto		(55,610)
Revaluation offreehold property			14			250,000			250,000
Net movement in funds				17,922		355,000	27,734	28,593	429,249
Total funds brought forward	(revised)			226,289	5,738,711		207,462	225,955	6,398,417
Total funds at 31August 2021				244,211	6,093,711		235,196	254,548	6,827,666

			Notes	Unrestricted	Unrestricted	Funds	Restricted	Endowment	Total
				General	Designated		Funds	Funds	2020
				Funds 8		Funds E			(restated) 8
INCOME AND ENDOWMENTS
Donations and legacies Charitable income						12.982			12,982
Assessments on churches Otherincome			4	477,135 170		11,468			477,135 11.638
Investments
Lettings income Investment income and	interest		3	9,706		85,338 2,651	280	347	85,338 12,984
Total income and endowments				487,011		112,439	280	347	600,077
EXPENDITURE
Charitable expenditure
Stipends, salaries and associated costs Assessments and levies			5 6	340,423 104,249		15,396			340,423 119,645
Manse running costs			7			121,971			121,971
Grants and donations			10	500		6,998	322		7,820
Administration and travel			8	28,282					28,282
Other outgoings			9	13.819		25,542			39,361
Raising funds
Investment management	costs					642	65	1,578	2,285
Total expenditure				487,273		170,549	387	1,578	659,787
Net income/(expenditure) investment gains/losses	before			(262)		(58,110)	(107)	(1,231)	(59,710)
Investment realised & unrealised		gains/(losses)
Investment properties
Other investments			16				(2,718)	(5,532)	(8,250)
Net income/(expenditure) transfers	before			(262)		(58,110)	(2,825)	(6,763)	(67,960)
Transfers between funds				13,661		(11,464)	(2,197)
Revaluation of freehold property
Net movement in funds				13,399		(69,574)	(5,022)	(6,763)	(67,960)
Total funds brought forward				212,890	5,808,285		212,484	232,718	6,466,377
Total funds at 31 August 2020		(revised)		226,289	5,738,711		207,462	225,955	6,398,417

				2021	2020
			Notes	8	6
Cash used in operating activities			25	(151,938)	(198,580)
Cash flows from investing activities
Dividends, interest and rents from investments				101,960	98,322
Proceeds from sale of property
Expenditure funded through investment	porffolio			83,782	71,156
Purchase of investments				(40.980)	(7,292)
Investment sale proceeds				42.748	8,506
Cash provided by investing activities				187,510	170,692
(Reduction)/increase in cash and cash equivalents			in year	35,572	(27,888)
Cash and cash equivalents at the beginning		ofthe	year	372,984	400,872
Total cash and cash equivalents at the end ofyear				408,556	372,984

MANSE RUNNING COSTS
	Unrestricted	Funds
	General	Designated	Restricted	Endowment	Total	Total
	Funds 6	Funds 6	Funds 6	Funds 6	2021f	2020 6
Insurance and ualities Rent payable Repairs and maintenance		27,972 19,200 27,260			27,972 19,200 27,260	31,811 6,950 83,210
		74,432			74,432	121,971

EL
Unrestricted	Funds
General	Designated	Restricted	Endowment	Total	Total
Funds 6	Funds 6	Funds 6	Funds 6	2021f	2020 6
8,090				8,090	6,908
2,309				2,309	3,344
1,699				1,699	1,710
4,400 6,766				4,400 6,766	4,800 11,520
23,264				23,264	28,282

			Unrestricted	Funds
			General	Designated	Restricted	Endowment	Total	Total
			Funds	Funds	Funds	Funds	2021	2020
			6	6	6	6	6	6
Audit fees			6,720				6,720	6,840
Professional	fees
Property	management		576	26.336			26,912	26,118
Sale of ransom		strip		7,230			7,230
Other expenditure			3,745				3,745	6,403
			11,041	33.566			44,607	39,361

20).Associated sup	port costs are insignifi	cant and	have n	ot been disclos	ed separately
						Total	Total
General funds (unrestricted)				Paid 6	Accrued 6	2021f	2020f
Reading University	Chaplaincy			500		500
Churches Together	in Berkshire
				500		500	500
Designated funds	(unrestricted)
Model Trust Fund
Tilehurst Methodist Church towards		funding	lay
employee post				30,000		30,000
Christ Church	Woodley, kitchen reurbishment						4,000
Kentwood Fund
Small grants	paid to churches						4,100
				30,000		30,000	8,100
Benevolence fund	(restricted)
Payments				100		100	322
				30,600		30,600	8,922

to anil during the year (2020	to anil during the year (2020	;6845).	;6845).
Expenses paid to members		ofthe Circuit Meeting were as follows:		2021	2020
				6	6
Travel expenses				3,883	10,089
Pulpit supply costs				2,340	3,775
Manse expenses reimbursed				1,711	390
Administration and	other ministry expenses		reimbursed	1,157	4,360
				9,091	18,614
Number oftrustees	who were paid expenses			16	19

eme co	ntinues int	o the future,	were as
			2017
			E'm
Target	level ofassets		449.7
Actual value ofassets			469.3
Surplus/shortfall(-)		in assets	19.6
Funding	level		104.40%


16	INVESTMENTS						2021	2020
							6	6
	Balance at 1 September 2020						334,426	343,888
	Additions Disposals Unrealised gains/(losses)						40,980 (42,748) 57,830	7,292 (8,506) ~8,248
							390,488	334,426
	Cash held						262,021	345,803
	Balance at 31August 2021						652,509	680,229
	Analysis of investments
	Investments listed on a recognised	Stock Exchange or held			in common
	investment funds, unit trusts or other		collective investment		schemes		390,487	334,426
	Other investments						95,575	95,209
	Circuit Model Trust cash holdings						166,447	250,594
							652,509	680,229
17	DEBTORS						2021	2020
	Sundry debtors						6,976	7,806
	Stipends paid in advance						20,118	19,896
	Prepayments						11,470	15,141
							38,564	42,843
18	CREDITORS						2021	2020
							6	6
	Assessments						34,264	35,701
	Other creditors						2,776	3,922
	Grants payable to churches						18,600	18,600
	Accruals						29,073	10,916
							84,713	69,139
19	ANALYSIS OF NET ASSETS BETWEEN FUNDS
			Fixed	Investment		Other	Current
			Assets	Property		Investments	Assets (net)	Total
			6		8		8	8
	Funds, year ended 31August 2021
	Endowment funds					254,548		254,548
	Restricted funds					231,514	3,682	235,196
	Unrestricted funds		3,195,000	2,617,750		166,447	358,725	6,337,922
			3,195,000	2,617,750		652,509	362,407	6,827,666
	Funds, year ended 31August 2020		(restated, see pages		11&12)
	Endowment funds					225,955		225,955
	Restricted funds					203,680	3,782	207,462
	Unrestricted funds		2,945,000	2,426,500		250,594	342,906	5,965,000
			2,945,000	2,426,500		680,229	346,688	6,398,417

ENDOWMENT	ENDOWMENT	FUNDS			Opening	Net incomef	Investment	Closing
					balances	(expenditure)	gainsl(losses)	balances
Movements in		year ended 31August 2021			E	E	E	E
Arthur	Newbery	Trust 5446 (Trustees	Investment	Fund: TIF	359			359
Anhur Anhur	Newbery Newbery	Trust 4345 (TIF) Trust 4763 (Methodist	Managed		30,599	42		30,641
Mixed	Funds 8	TIF)			85,268		15,633	100,901
Arthur	Newbery	Trust 5447 (TIF)			337			337
Anhur	Newbery	Trust 3669(TIF)			9,535	13		9.548
AJ Briggs Trust		(managed by Lloyds Bank Private		Banking)			14.408	112.762
					225,955	(1,448)	30,041	254,548
Movements In		year ended 31 August	2020
Arthur	Newbery	Trust 5446 (Trustees Investment		Fund; TIF	359			359
Arthur Arthur	Newbery Newbery	Trust 4345 (TIF) Trust 4763 (Methodist	Managed		30,399	200		30,599
Mixed Arthur	Funds & Newbery	TIF) Trust 5447 (TIF)			86,797 337		(1,529)	85,268 337
Arthur	Newbery	Trusl 3669(TIF)			9,471	64		9,535
AJ Briggs Trust		(managed by Lloyds Bank Private		Banking)				99.857
								225 955

Movements	Movements	in year ended 31	August 2021	E			E		E
Benevolence		fund		3,782	(100)				3,682
Edith	Bailey	Bequest (supporting	people)	10.757	15				10,772
Arthur	Newbery Trust (Iinancing		capital schemes
in the	Circuit)			192,923	30	27,789			220,742
				207,462	(55)	27,789		0	235,196
Movements		In year ended 31	August 2020
Benevolence		fund		4,104	(322)				3,782
Edith	Bailey	Bequest (supporting	people)	10,686	71				10.757
Arthur	Newbery Trust (financing		capital schemes
in the	Circuit)			195,500	144	(2,721)			192,923
Fund	for the	Worker with the Deaf (dosed)		2,194			(2.194)
				212,484	(107)	(2,721)	(2.194)		207,462

			Fo	r lhe year ende	d 31August 2	021 (cent'dj
22	UNRESTRICTED FUNDS				Opening	Net Income or	Investment	Transfers	Closing
					balances	expenditure(-)	GainslLosses		balances
					E	8	6	E	E
	Movements in year ended 31August 2021
	General fund (day lo day running Designated Funds:	costs)			226,289	(40,688)		58,610	244,211
	Manse Maintenance fund Menses capital (value ofmenses) Youth work fund Circuit developmeni fund (training,		outreach,	small projects	50,535 5,371,500 2,500 50,607	(3,101)	441,250	1,000	48,434 5,812,750 2,500 50.607
	Kentwood Fund (grants for buildings		projects)		12,973				12,973
	Circuit Model Trust fund				250.596	(24,539)		(59,610)	166,447
					5,965,000	(68,328)	441,250		6,337,922
	Movements In year ended 31August 2020
	General fund (day lo day running Designated Funds:	costs); restated			212,890	(259)		13,658	226,289
	Manse Maintenance fund Menses capital (value ofmenses)	-	restated		58,742 5,371,500	(50,707)		42,500	50,535 5,371,500
	Youth work fund				2,500				2,500
	Circuit development fund (training,	outreach,		small projects	37,625	12,982			50,607
	Kentwood Fund (grants for buildings		projects)		15,971	(2,998)			12,973
	Circuit Model Trust fund				321,947	(17,387)		(53,964)	250,596
					6,021,175	(58,369)		2,194	5,965,000

were for re	lated pa	hie	s	as defined in Nole 1 and	do not appear elsewhere in	these accounts.
					~Recei ts	~Pa ments
					E	E
M Ihodist	Conn xi	n	I	Funds
Methodist	Church Fund				3.880	2,880	1,000
Funds for.	Properly				3,522	3,522
	Mission	in	Britain		1.467	1,467
	World Missions				293	293
Methodist	Homes				150		150
Aa We Can					50	50
Preachers	and Leaders			of Worship	100
Methodisl	Ministers'	Housing Society			1,989	1,989
Support for Presbyters				and Deacons	100	100
					11.551	10,301	1,250

RECONCILIATION	OF NET (OUTGOING)/	OF NET (OUTGOING)/	RESOURCES TO NET CASH INFLOWS	RESOURCES TO NET CASH INFLOWS	FROM
OPERATIONS
			2021		2020
			6		6
Net movement in funds			179,249		(67,960)
(Gains)/losses on investments
Investment properties			(191,250)
Other investments			(57,830)		8,250
Investment income	and rent	from investments	(101,960)	(98,322)
Proceeds from sale	offixed assets
(Increase)/decrease	in debtors		4,279	(11,898)
Increase/(decrease)	in creditors		15,574	(28,650)
Net cash used in operating		activities	(151,938)	(198,580)
Analysis ofcash and cash		equivalents
CFBdeposits			383,142	347,969
Cash at bank and in	hand		25,414		25,015
Net cash used in operating		activities	408,556	372,984