2022-08-31-accounts - Berkshire and Hampshire Borders Methodist Circuit

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

		Pages
Report ofthe Trustees		1-7
Report ofthe Independent	Auditors	8-10
Statement of Financial Activities
Year ended 31August	2022	11
Year ended 31August	2021	12
Balance Sheet		13
Cash flow statement		14
Notes forming part ofthe	Financial Statements	15-24

The Balance Sheet show	s the Circuit's assets, liabilities	s the Circuit's assets, liabilities	and reserves.	and reserves.
The net expenditure for	the year was f62,336 before		investment		gains (2021: net		expenditure of
f69,831).The reduction	in net expenditure	ofF7,495 resulted		from the following:			f
Churches' assessments were reduced							40,863
Investment income and bank interest was		higher					2,813
Rental income from manses was higher with fewer voids			and	another	property	being let	10,815
Less from sale ofproperty access rights							-21,200
Staffcosts were lower							28,079
Manse maintenance and	other costs (net	ofcontributions)	were lower				5,457
Less paid out to churches	in grants						15,100
Administrative and other	expenses lower						5,083
Other variations, net							2,211 ~7495

in Notes 20to 22 in t	hese fin	anc	ial state	m	en	ts. These	fun	ds	ma	y be	summarised	as follows F	: E
Endowment funds
The income from these funds			is applied		to ministry		within		the	Circuit, The
capital is not available	for use*												237,936
Restricted funds
Available for financing	capital	schemes		-	Arthur Newbery			Trust*				209,527
Available for funding	revenue	expenditure			as specified		by	donors				14474
													224,001
Unrestricted funds
Manse capital fund (equivalent			to the value			ofmanse	and	investment			properties)		6,401,500
Circuit Model Trust	Fund,	for financing				churches'	property			and	mission
schemes through grants*													115,387
Funds available for financing		Circuit occasional expenditure:
Circuit development	fund,	for	training	and mission projects								43,716
Youth work fund												2,500
Kentwood fund, for supporting			churches			small building		schemes				9,973
													56,189
Funds for financing Circuit annual operating						expenditure
General funds, for	afi purposes											241,937
Manse maintenance	fund,	for repairs,			maintenance		and	refurbishment				DD767
													292 7D4
Total funds													7327717

9. Principal ris	9. Principal ris	ks and uncertainties	ks 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		Comments
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 stalfin						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
	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 sufficient time, skills			and			Circuit may need to become managing
	expertise to enable		them to continue				trustee for the site.
	o cretin

			Notes	Unrestricted	Unrestricted	Funds	Restricted	Endowment	Total
				General	Designated		Funds	Funds	2022
				Funds		Funds
				6		8
INCOME AND ENDOWMENTS
Donations and legacies						607			607
Charitable income
Assessments on churches				408,987					408,987
Other income			4			7,607			7,607
Investments
Lettings income						104,439			104,439
Investment income and	interest		3	10,199		607		189	11,149
Total income and endowments				419,186		113,260	154	189	532,789
EXPENDITURE
Charitable expenditure
Stipends, salaries and associated costs			5	329,093					329,093
Assessments and levies			6	110,284		5,822			116,106
Manse running costs			7			68,975			68,975
Grants and donations			10	(16,100)		31,600			15,500
Administration and travel			8	24,835					24,835
Other outgoings			9	15,761		21,736			37,497
Raising funds
Investment management	costs			858		474	93	1,694	3,119
Total expenditure				464,731		128,607	93	1,694	595,125
Net incomel(expenditure)	before			(45,545)		(15,347)	61	(1,505)	(62,336)
investment gains/losses
Investment realised &unrealised		gainsl(losses)
Investment properties						318,750			318,750
Other investments			16				(11,256)	(15,107)	(26,363)
Net income/(expenditure)	before			(45,545)		303,403	(11,195)	(16,612)	230,051
transfers
Transfers between funds				43,271		(43,271)
Revaluation offreehold property						270,000			270,000
Net movement in funds				(2,274)		530,132	(11,195)	(16,612)	500,051
Total funds brought forward				244,211		6,093,711	235,196	254,548	6,827,666
Total funds at 31August 2022				241,937		6,623,843	224,001	237,936	7,327,717

			Notes	Unrestricted	Unrestricted	funds	Restricted	Endowment	Total
				General	Designated		Funds	Funds	2021
				Funds		Funds
				6		8	8
INCOME AND ENDOWMENTS
Donations and legacies
Charitable income
Assessments on churches				449,850					449,850
Other income			4	431		30,243			30,674
Investments
Letbngs income						93,624			93,624
Investment income and	interest		3	7,259		832	110	135	8,336
Total income and endowments				457,540		124,699	110	135	582,484
EXPENDITURE
Charitable expenditure
Stipends, salaries and associated costs			5	357,172					357,172
Assessments and levies			6	105,738		13,839			119,577
Manse running costs			7	-		74,432			74,432
Grants and donafions			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 income/(expenditure)	before			(40,688)		(27,640)	(55)	(1,448)	(69,831)
investment gains/losses
Investment realised &unrealised		gains/(losses)
Investment properbes			15			191,250			191,250
Other			16				27,789	30,041	57,830
Net income/(expenditure)	before			(40,688)		163,610	27,734	28,593	179,249
transfers
Transfers between funds				58,610		(58,610)
Revaluafion 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

				2022
			Notes	E
FIXEDASSETS
Freehold properties;		manses	14		2,430,000		3,195,000
Investment	properties		15		3,971,500		2,617,750
Investments			16		573,640		652,509
					6,975,140		6,465,259
CURRENT	ASSETS
Debtors			17	33,550		38,564
Central Finance Board deposits				368,510		383,142
Cash at bank and in		hand		16,985		25,414
				419,045		447,120
Creditors
Amounts falling due within one year			18	66,468		84,713
Net Current	Assets				352,577		362,407
NET ASSETS			19		7,327,717		6,827,666
FUNDS
Endowment	funds		20		237,936		254,548
Restricted	funds		21		224,001		235,196
Unrestricted	funds		22		6,865,780		6,337,922
					7,327,717		6,827,666

				2022	2021
			Notes	8
Cash used in operating activities			25	(191,155)	(151,938)
Cash flows from investing activities
Dividends, interest and rents from investments				115,588	101,960
Proceeds from sale ofproperty
Expenditure funded through investment	porffolio			52,633	83,782
Purchase ofinvestments				(5,435)	(40,980)
Investment sale proceeds				5,308	42,748
Cash provided by investing activities				168,094	187,510
(Reduction)fincrease in cash and cash equivalents			in year	(23,061)	35,572
Cash and cash equivalents at the beginning		ofthe	year	408,556	372,984
Total cash and cash equivalents at the end ofyear				385,495	408,556

			Unrestricted	Funds
			General	Designated	Restricted	Endowment	Total	Total
			Funds	Funds	Funds	Funds	2022	2021
			6	6	6	6	8	6
Insurance and utilities				26,825			26,825	27,972
Rent payable				19,200			19,200	19,200
Repaim and	maintenance			22,950			22,950	27,260
				68,975			68,975	74.432
ADMINISTRATION		AND	TRAVEL
			Unrestricted	Funds
			General	Designated	Restricted	Endowment	Total	Total
			Funds f	Funds	Funds 6	Funds 6	2022	2021
Telephone costs			5,652				5,652	8,090
Administrative	expenses		3,827				3,827	2,309
Publications			1,422				1,422	1,699
Circuit office	rent		3,650				3,650	4,400
Travel expenses			10,284				10,284	6,766
			24,835				24,835	23,264
OTHER OUTGOINGS
			Unrestricted	Funds
			General	Designated	Restricted	Endowment	Total	Total
			Funds f	Funds 6	Funds 8	Funds f	2022 6	2021 6
Audit fees			8,100				8,100	6,720
Professional	fees
Property management			576	21,736			22,312	26,912
Sale ofransom		skip						7,230
Other expenditure			7,085				7,085	3,745
			15,761	21,736			37,497	44,607

22).Associated su	pport costs are insignificant and	have not	been disclo	sed separately
					Total	Total
				Accrued or
			Paid	(released)	2022	2021
General funds (unrestricted)			6	6		6
Reading University Wesley Methodist	Chaplaincy Church accrual released		500 500	~16,eM ~16,600	500 ~16.MQ ~16,100	500 500
Designated funds	(unrestricted)
Model Trust Fund
Wesley Methodist Church for refurbishment		ofpart
of84Queens Road for other use			16,600		16,600	30,000
Tadley Common Methodist towards car park		renewal	4,500		4,500
Kentwood Fund
Small grants	paid to churches		3,000		3,000
Circuit Devepment	Fund
Small grants	paid to churches		7,500 331,3I		7,500
Benevolence fund (restricted)
Payments						100
			32,100	(16,600)	15,500	30,600

n as a	t 31 Augu	st 2021, both assuming	that the Scheme contin	ues into the
			~202	2021
			f'm	gm
Target	level ofassets		501.7	498.5
Actual value ofassets			487.5	574.3
Surplus/shortfall(-)		in assets	-14.2	75.8
Funding	level		97.16%	11519%

TANGIBLE FIXEDASSETS	TANGIBLE FIXEDASSETS	Land f	Buildings f	Total f
Valuation
At 1 September 2021		1,065,000	2,130,000	3,195,000
Revaluation change		85,000	185,000	270,000
Transferred to investment	properties	(345,000)	(690,000)	(1,035,000)
At 31August 2022		805,000	1,625,000	2,430,000
Depreciation
At 1 September 2021
Provision for the year
At 31August 2022
Net BookValue
At 1 September 2021		1,065,000	2,130,000	3,195,000
At 31August 2022		805,000	1,625,000	2,430,000

not been revalued was f1,870,655(31August 202	not been revalued was f1,870,655(31August 202	1:f2,695,511).
INVESTMENT PROPERTIES		Land f	Buildings f	Total f
Valuation
At 1 September 2021		869,250	1,748,500	2,617,750
Revaluation	change	112,050	206,700	318,750
Transferred	from fixed assets	345,000	690,000	1,035,000
At 31August	2022	1,326,300	2,645,200	3,971,500

16	INVESTMENTS						2022	2021
							6	6
	Balance at 1 September 2021						390,488	334,426
	Additions						5,435	40,980
	Disposals Unrealised gains/(losses)						(5,308) ~26.363	(42,748) 57,830
							364,252	390,488
	Cash held						209,388	262,021
	Balance at 31August 2022						573,640	652,509
	Analysis ofinvestments
	Investments listed on a recognised		Stock Exchange or held		in common
	investment funds, unit trusts	or other collective investment			schemes		364,252	390,487
	Other investments						94,002	95,575
	Circuit Model Trust cash holdings						115,386	166,447
							573,640	652,509
'I7	DEBTORS						2022	2021
							6	6
	Sundry debtors						5,305	6,976
	Stipends paid in advance						17,490	20,118
	Pre payments						10,755	11,470
							33,550	38,564
18	CREDITORS						2022	2021
							6	6
	Assessments for September	paid in advance					34,488	34,264
	Other creditors						3,861	2,776
	Grants payable to churches						1,500	18,100
	Accruals						26,619	29,573
							66,468	84,713
19	ANALYSIS OF NET ASSETS BETWEEN FUNDS
			Fixed	Investment		Other	Current
			Assets	Property		Investments	Assets (net)	Total
			6		6	6	6
	Funds, year ended 31August 2022
	Endowmentfunds					237,936		237,936
	Restricted funds					220,318	3,683	224,001
	Unrestricted funds		2,430,000	3,971,500		115,386	348,894	6,865,780
			2,430,000	3,971,500		573,640	352,577	7,327,717
	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

20	ENDOWISENT FUNDS		Opening	Net incomel	Net incomel	Net incomel	Investment	Transfers		Closing	Closing
	Movements in year ended 31August 2022		balances f	(expenditure) f			gains/(losses) f	f		balances f
	Arthur Newbery Trust 5446 (Trustees Investment	Fund: TIF	359			3					362
	Arthur Newbery Trust 4345(TIF)		30,641			56					30,697
	Arthur Newbery Trust 4763(Methodist Managed
	Mixed Funds &TIF)		100,901				(6,332)				94,569
	Arthur Newbery Trust 5447 (TIF)		337								337
	Arthur Newbery Trust 3669(TIF)		9,548			16					9,564
	AJ Briggs Trust (managed by Uoyds Bank Private Banking)		112,762								102,407
			254,548		(1,505)		(15,107)				237,936
	Movements in year ended 31August 2021
	Arthur Newbery Trust 5446 (Trustees Investment	Fund: TIF	359								359
	Arthur Newbery Trust 4345(TIF)		30,599			42					30,641
	Arthur Newbery Trust 4763(Methodist Managed
	Mixed Funds &TIF)		85,268				15,633				100,901
	Arthur Newbery Trust 5447 (TIF)		337								337
	Arthur Newbery Trust 3669(TIF) AJ Briggs Trust (managed by Lloyds Bank Private Banking)		9,535 8.85 225.855	13 ~503 ~448			3DDI				9,548 112,762 254 548
The	invesbnent income generated by funds 5446, 4763 and 3669 is used to			fund	the Circuit's		day to day running	costs.	The	investment
income generated by funds 4345 and 3669 is held in the fund. The			income generated		by the	AJ Briggs Trust is used		to fund ministry			in
21	RESTRICTED FUNDS
	Movements in year ended 31August 2022										f
	Benevolence fund		3,682								3,682
	Edith Baihy Bequest (supporbng people)		10,772			20					10,792
	Arthur Newbery Trust (financing capital schemes
	in the Circuit)		220,742			41	(11,256)				209,527
			235,196			61	(11,256)		0		224,001
	Movements in year ended 31August 2021
	Benevolence fund		3,782			(100)					3,682
	Edith Bailey Bequest (supporbng people)		10,757			15					10,772
	Arthur Newbery Trust (finandng capital schemes
	in the Circuit)		192,923			30	27,789				220,742
			207,462			(55)	27,789		0		235,196

	For	the year ended	31August 2	022 (cont'dj
UNRESTRICTED FUNDS			Opening	Net Income or	Investment	Transfem	Closing
			balances	expenditure(-)	GainslLosses		balances
			6	6	6	E	6
Movements In year ended 31August 2022
General fund (day to day running	costs)		244,211	(45,545)		43,271	241,937
Designated Funds:
Manse Maintenance fund			48,434	16,333		(14,000)	50,767
Menses capital (value ofmenses)			5,812,750		588,750		6,401,500
Youth work fund			2,500				2,500
Circuit development fund (training,	oukaach,	small projects',	50,607	(6,891)			43,716
Kentwood Fund (grants for buildings projects)			12,973	(3,000)			9,973
Circuit Model Trust fund			166,447	(21,789)		(29,271)	115,387
			6,337,922	(60,892)	588,750		6,865,780
Movements In year ended 31August 2021
General fund (day to day running	costs); restated		226,289	(40,688)		58,610	244,211
Designated Funds:
Mense Maintenance fund			50,535	(3,101)		1,000	48,434
Menses capital (value ofmenses)	- restated		5,371,500		441,250		5,812,750
Youth work fund			2,500				2,500
Circuit development fund (training,	ouuaech,	small projects',	50,607				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

RECONCILIATION OF NET (OUTGOING)/	RECONCILIATION OF NET (OUTGOING)/	RESOURCES TO NET CASH INFLOWS FROM	RESOURCES TO NET CASH INFLOWS FROM
OPERATIONS
		2022	2021
		8	5
Net movement in funds		230,051	179,249
(Gains)/losses on investments
Investment properties		(318,750)	(191,250)
Otherinvestments		26,363	(57,830)
Investment income and rent	from investments	(115,588)	(101,960)
Proceeds from sale offixed assets
(Increase)/decrease in debtors		5,014	4,279
Increase/(decrease) in creditors		(18,245)	15,574
Net cash used in operating	activities	(191,155)	(151,938)
Analysis ofcash and cash	equivalents
CFBdeposits		368,510	383,142
Cash at bank and in hand		16,985	25,414
Net cash used in operating	activities	385,495	408,556