2020-08-31-accounts

STAFFORD METHODIST CIRCUIT

(Registered Charity No. 1135822)

TRUSTEES' REPORT AND ACCOUNTS Year ended 31 August 2020

CONTENTS	Page
Trustees' Report	1-8
Independent Examiner's Report	9
Statement of Financial Activities	10
Balance Sheet	11
Notes to the Financial Statements	12-19

STAFFORD METHODIST CIRCUIT

Trustees' Annual Report on Finance and Governance For the year ended 31 August 2020

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(FRSSE) 2015.

Full Name of Charity: STAFFORD METHODIST CIRCUIT

Registration Charity Number: 1135822

Date of registration 06 May 2010

Main communication address:

Circuit Office, Asbury House, Merrey Road, Stafford ST17 9LX

The members of the Stafford 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 on page 8 of this report.

Circuit Ministers and officers

Active Circuit Ministers Rev. Pauline Salter Rev. Jimione Kaci Circuit Lay Worker Mrs Calolyn Hamer Mrs Isobel Wakerell Circuit Stewards Mr Ian Mason Mr Paul Yates

Administrator: Mrs Leigh Reade

In accordance with the guidance on term of office, Mr Peter Bell stood down as Treasurer for the Circuit on 31/08/2019 and a replacement is being sought from the local churches. In the interim the remaining Circuit stewards have assumed collective responsibility for the financial accounting for the Circuit during the year. Independent examiner: Bradshaws Limited

Charter Court, Well House Barns, Chester Road, Chester CH4 0DH

Investment Bankers: Central Finance Board of the Methodist Church Trustees For Methodist Church Purposes

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STAFFORD METHODIST CIRCUIT

Trustees' Annual Report for the year ended 31 August 2020

Aims and organisation

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 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 for the time being of any society or institution subsidiary or ancillary to The Methodist Church;

• d) Any purpose for the time being of any charity being a charity subsidiary or ancillary to The Methodist Church

The Circuit produces a bi-monthly preaching plan to ensure that regular acts of worship take place at each of the 7 Methodist Churches and 3 Local Ecumenical Partnerships in its geographical area. The Stafford Circuit is constituted to offer acts of worship in its church communities and to further the mission of the Church in Stafford and across the borough of Stafford. With our primary internal function being that of Christian worship, we organise acts of worship in each of the 10 Circuit churches every Sunday. Our internal structure is based on a Circuit Meeting which meets four times a year; a Local Preachers meeting which meets around four times a year; Circuit Leadership Team meetings throughout the year, and Staff Meetings which meet monthly. We endeavour to make our meetings more than just talking shops; they are the place where important decisions are made and within them, we plan our strategies and fulfill our role as Charity Trustees.

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).

Trustee Training

A range of guidance is 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 Wolverhampton & Shrewsbury District and is also accountable to the Methodist Conference.

The following Methodist Churches/LEP's are linked to the circuit: Barlaston, Berkswich, Bishops Offley, Eccleshall, Gnosall, Milwich (LEP), Rising Brook, Rowley Street, St Johns, Stone (LEP), Trinity (LEP), Weston, Woodseaves.

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STAFFORD METHODIST CIRCUIT

Trustees' Annual Report for the year ended 31 August 2020

Review of the year

2019/2020 has again necessitated new ways of working due to the pandemic which began to affect the way we operated from March 15th 2020. The ordained staff team remains the same with two full time presbyters working alongside one administrator, two pastoral workers and two youth workers. We have worked as a team across the whole circuit with the core team of presbyters, administrator and pastoral workers meeting regularly to ensure the ministry of the church is effective. Last year saw the closure of two of the churches. We still hope to find a mission purpose for the Woodseaves building but the pandemic has made it impossible to begin any new work on the premises. Investigations are ongoing to explore the possibility of using the building for mission projects, and we have been advised that we do not need to show the building as an investment property in our accounts at this time.

Rowley Street made the decision to close at the end of August 2019. We have been pursuing the possibility of selling the building. In August 2020 TMCP helped us look at the possibilities and necessary steps to sell the building but again, the pandemic has prevented advancing further.

The worshipping life of all the churches is very important. However, the pandemic has meant we have had to make difficult decisions about the way we worship. On March 16th 2020 the leadership team of the circuit took the decision to ask all the churches to close their buildings for all activities and worship. This was followed only a week later by a national lockdown where churches were required to remain closed. Over the summer months a lot of energy was put into ensuring the buildings could be reopened safely in September. In person worship would only be offered once a month by a preacher as several of our preachers were in the vulnerable categories. The buildings being closed has proved to be a catalyst to churches thinking about ways to safely worship. This has resulted in two live services every Sunday using Zoom, with appropriate safeguards put in place. A prerecorded act of worship has been provided every week. Each church takes a turn in organising the service which is then available on YouTube and Facebook. Churches moved prayer meetings online and some took to reaching out to people by two people holding a short service in the garden or on the pavement for those who were unable to leave their homes. The churches have seen a growth in numbers and are more effectively reaching those who were too old and frail to attend worship.It is important to maintain and develop the worshipping life of the church as it is the catalyst for other areas of our calling. From worship flows our three other main activities within local, national and global communities; learning & caring, service and evangelism.

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STAFFORD METHODIST CIRCUIT

Trustees' Annual Report for the year ended 31 August 2020

Review of the year (continued)

Our churches seek to embrace the breadth of ‘Our Calling’ whilst also recognising the challenges and difficulties. We are rooted in a number of different local communities, but our vision is much wider as we seek to serve the wider church and world in our work. Work in the community continues to be an important aspect of the circuit's mission. Sadly, the pandemic has meant that our buildings were not available for community use. However, this has not prevented the churches finding ways to reach out to their communities. Our youth workers continue to support the young people in a variety of ways though in person youth work has not been possible since March. When considering achievements and performance it is right to pay tribute to the many people throughout the circuit who in their daily lives respond to the call of Jesus “follow me” by offering pastoral care and/or practical help, and, to the team of Local Preachers’ who enable services to take place Sunday by Sunday. We operate an open-door policy and welcome all to our church communities and wider work irrespective of race, gender, ethnicity, sexuality or any kind of disability, taking seriously the challenge to love God, self and neighbour.

Financial Review

Circuit income is drawn primarily from the assessments paid by the churches, and during the year these increased by 2% in line with the annual review to £223,761 (2019: £219,384). Rental income fell by 19% to £11,076 as a result of closure of Woodseaves church the previous year, however, rental of a former manse and office space at Asbury House were maintained. The costs of Ministerial stipends and lay worker salaries were level with the previous year, however, there was an increase in the cost of repairs and maintenance associated with refurbishment of one of the manses and former manse (rental property). These repairs were in line with the budget allocated for this purpose.

At 31st August 2020, unrestricted funds, excluding Land & Buildings, stood at £314,535 (2019: £301.295) of which £263,124 was not designated for any particular purpose.

Given the restrictions on normal activity and uncertainty of future income brought about by the Covid Pandemic, the Circuit Leadership Team felt it was necessary to maintain a position of responsiveness and would be inappropriate to reduce the free reserves at this time.

Plans for 2020/21

Plans for 2020/21 are difficult to make with a high degree of certainty. Many churches in the Circuit have suffered a reduction in income due to lack of attendance offertory and a review of the financial position is planned (will be needed) once all audited accounts are available from all churches.

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STAFFORD METHODIST CIRCUIT

Trustees' Annual Report for the year ended 31 August 2020

Reserves Policy

General

It is the Trustees policy to maintain a balance of unrestricted and undesignated funds equivalent to between three and four months average unrestricted expenditure, to cover unexpected requirement which may occur from time to time, and also to maintain a fund of between £50,000 and £75,000 to enable the Circuit to assist its churches with appropriate grants and loans.

St Johns Mission & Development Fund

This fund, set up with the Methodist share of the proceeds from the sale of the St John's Church building, has been designated for St John's use in developing its future mission plans. The fund is monitored by the Circuit Meeting to ensure that that monies will be used, both for an approved purpose and within a reasonable timescale.

Property Refurbishment Fund

Manse refurbishments are carried out at irregular intervals, usually to coincide with a change in Minsters, and can therefore fluctuate wildly from year to year. This fund, which will ensure that adequate provision is made for future costs, will be capped at a maximum of £25,000.

Risk Management

The major risks associated with the Circuit have been identified by the Circuit Leadership Team. A regular review process is in place and will be recorded.

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 care and nurture of, and respectful pastoral ministry with, all children, young people and adults

• the safeguarding and protection of all children, young people and adults when they are vulnerable

• the establishing of safe, caring communities which provide a loving environment where there is informed vigilance as to the dangers of abuse.

• We will carefully select and train all those with any responsibility within the Church, in line with Safer Recruitment principles, including the use of criminal records disclosures and registration with the relevant vetting and barring schemes.

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STAFFORD METHODIST CIRCUIT

Trustees' Annual Report for the year ended 31 August 2020

Safeguarding (continued)

• We will respond without delay to every complaint made which suggests that an adult, child or young person may have been harmed, cooperating with the police and local authority in any investigation.

• We will seek to work with anyone who has suffered abuse, developing with them an

• appropriate ministry of informed pastoral care.

• We will seek to challenge any abuse of power, especially by anyone in a position of

• trust.

• We will seek to offer pastoral care and support, including supervision and referral to the proper authorities, to any member of our church community known to have offended against a child, young person or vulnerable adult.

• In all these principles we will follow legislation, guidance and recognised good practice

The Stafford Methodist 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 Stafford Methodist 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.

Statement of Trustees' Responsibilities

The trustees are responsible for preparing the Trustees' annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice.

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these statements, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP 2015 (FRSSE);

• make judgements and estimates that are reasonable and prudent;

• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

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STAFFORD METHODIST CIRCUIT

Trustees' Annual Report for the year ended 31 August 2020

Statement of Trustees' Responsibilities (continued)

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

DECLARATION

The Charity's Trustees declare that they have approved the Trustees' Report above.

Signed on behalf of the charity's Trustees

Signatures

Name Rev. Pauline Salter Leigh Barbara Reade PositionChair Secretary Date 17th June 2021

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STAFFORD METHODIST CIRCUIT

Appendix A

Trustees' Annual Report for the year ended 31 August 2020

CIRCUIT MEETING MEMBERSHIP

MINISTERS Rev. P M Salter Rev. J Kaci LAYWORKERS Mrs C A Hamer Mrs I Wakerell CIRCUIT STEWARDS Mr I Mason Dr P C Yates Mr P W Hardy Mrs J D Wood CIRCUIT MEETING SECRETARY Mrs L B Reade LOCAL PREACHERS REPRESENTATIVES Mrs G F Ashmore Dr M Timothy (until 01/05/2020) Mrs M E Winnington CIRCUIT REPRESENTATIVES TO SYNOD Mr P Hardy from 28/11/2019 Mrs V Bates from 28/11/2019 Dr S McCready-Shea from 01/12/2019 Mrs M E Hemingway CHURCH REPRESENTATIVES Barlaston Mrs K A Ford Rising Brook Mr I F Baldwin Mrs K M Bradburn Mrs I M Cantrill Mrs S Watson Berkswich Mr D C East Mrs C East St John's, Stone Mrs A Dair Mrs P Roberts Mr A R Heath Mrs L M Westoby Mr D C Stewart Mr T A S Goodchild Trinity, Stafford Miss W E Harris Bishops Offley Mrs M E Hemingway Mr T Houghton Mrs J Palin Mr A Lowe Mrs A Hardy Miss L Birch Eccleshall Mrs C Harper Weston Mrs B Gillespie Mrs D H Kirkham Mr C Gillespie Mrs M Embrey Gnosall Mr W D Basford Mr T H Harrison Mrs J Jobling Milwich Mr R W Knight Mrs E Hodson

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STAFFORD METHODIST CIRCUIT

TRUSTEES' ANNUAL REPORT for the year ended 31 August 2020

Independent Examiner’s Report to the Trustees of Stafford Methodist Circuit

I report on the Accounts of the Stafford Methodist Circuit for the year ended 31st August 2020 which are set out on pages 10 to 19.

Responsibilities and basis of report

As the charity's trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').

I report in respect of my examination of the charity's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

Since the charity's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or

2. the accounts do not accord with those records; or

3. the accounts do not comply with the applicable requirements concerning 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 fair view' which is not a matter considered as part of an independent examination.

I have no concerns 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.

A J Bradshaw FCA Charter Court Bradshaws Limited Well House Barns Chartered Accountants Chester Road Registered Auditor Bretton, Chester 17th June 2021 CH4 0DH

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STAFFORD METHODIST CIRCUIT

Statement of Financial Activities (SOFA) for the year ended 31 August 2020

Notes Income and Endowments: Donations and legacies 2 Income from MonetaryInvestments 3 Assessments on Churches 4 Capital Receipts 5 Grants 6 Rents received 7 Other Income 8 Total charitable Income Expenditure on: Grants and Donations Stipends,salaries,NIC & Pension costs 9 District Assessment & Levy 10 URC Mission & Ministry 11 Property 12 Office Expenses Telephone & TravellingExpenses 13 Other Expenditure 14 Total charitable expenditure Net income before investment gains/losses Netgains on monetaryinvestments Disposals/Revaluations Net incoming/(outgoing) resources before transfers Transfers between funds 22 Net movement in funds Total funds brought forward Total funds carried forward	Unrestricted Funds	Unrestricted Funds	Unrestricted Funds	Resricted Funds			Unrestricted Funds	Unrestricted Funds	Unrestricted Funds	Resricted Funds
	Unrestricted	Circuit Model Trust	Designated	Restricted	Total 2019-20		Unrestricted	Circuit Model Trust	Designated	Restricted	Total 2018-19
	£	£	£	£	£		£	£	£	£	£
Income and Endowments:
Donations and legacies				18,544	18,544					31,248	31,248
Income from MonetaryInvestments	970	1,180	223		2,373		993	1,197	212		2,402
Assessments on Churches	223,761				223,761		219,384				219,384
Capital Receipts					0						0
Grants					0						0
Rents received	11,076				11,076		13,628				13,628
Other Income					0		3,915				3,915
Total charitable Income	235,807	1,180	223	18,544	255,754		237,920	1,197	212	31,248	270,577
Expenditure on:
Grants and Donations					0		0				0
Stipends,salaries,NIC & Pension costs	133,547			28,313	161,860		130,193			27,535	157,728
District Assessment & Levy	40,266	4,567			44,833		40,131	4,760			44,891
URC Mission & Ministry	6,787				6,787		10,796				10,796
Property	19,457				19,457		14,696				14,696
Office Expenses	4,686				4,686		4,507				4,507
Telephone & TravellingExpenses	9,401			264	9,665		13,938			333	14,271
Other Expenditure	4,976	283		300	5,559		3,160	291		205	3,656
Total charitable expenditure	219,120	4,850	0	28,877	252,847		217,421	5,051	0	28,073	250,545
Net income before investment
gains/losses	16,687	(3,670)	223	(10,333)	2,907		20,499	(3,854)	212	3,175	20,032
Netgains on monetaryinvestments					0						0
Disposals/Revaluations					0						0
Net incoming/(outgoing)
resources before transfers	16,687	(3,670)	223	(10,333)	2,907		20,499	(3,854)	212	3,175	20,032
Transfers between funds					0		(6,500)		6,500		0
Net movement in funds	16,687	(3,670)	223	(10,333)	2,907		13,999	(3,854)	6,712	3,175	20,032
Total funds brought forward	712,759	141,348	47,188	26,936	928,231		698,760	145,202	40,476	23,761	908,199
Total funds carried forward	729,446	137,678	47,411	16,603	931,138		712,759	141,348	47,188	26,936	928,231

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STAFFORD METHODIST CIRCUIT

Balance Sheet as at 31 August 2020

Tangible Fixed Assets Notes Circuit Manses & Equipment 15 Investment Properties Investments Totalfixed assets Current Assets Debtors and Prepayments 16 Loans bythe Circuit 17 Central Finance Board Deposits 18 Cash at Bank and in hand 18 Trustees for Methodist Church Purposes 19 Total current assets Creditors and Accruals (due in under 1yr) 20 Net current assets(liabilities) Total assets less current liabilities Creditors and Accruals (due after more than 1year) Net assets Funds of the Circuit	Tangible Fixed Assets Notes Circuit Manses & Equipment 15 Investment Properties Investments Totalfixed assets Current Assets Debtors and Prepayments 16 Loans bythe Circuit 17 Central Finance Board Deposits 18 Cash at Bank and in hand 18 Trustees for Methodist Church Purposes 19 Total current assets Creditors and Accruals (due in under 1yr) 20 Net current assets(liabilities) Total assets less current liabilities Creditors and Accruals (due after more than 1year) Net assets Funds of the Circuit	Unrestricted Funds	Unrestricted Funds	Unrestricted Funds	Restricted Funds £
		General £	Circuit Model Trust £	Designated £		Totals 2019-20 £	Totals 2018-19 £
		600,000				600,000	600,000
		600,000				600,000	600,000
		7,369				7,369	7,576
							1,250
		90,311		47,411	16,603	154,325	223,854
		71,903				71,903	14,450
			137,678			137,678	141,348
		169,583	137,678	47,411	16,603	371,275	388,478
		40,137				40,137	60,247
		129,446	137,678	47,411	16,603	331,138	328,231
		729,446	137,678	47,411	16,603	931,138	928,231
							-
							-
		729,446	137,678	47,411	16,603	931,138	928,231
General Fund(Unrestricted)		729,446		47,411		729,446	712,759
Circuit Model Trust Fund (Unrestricted)			137,678			137,678	141,348
Designated Funds (Unrestricted)				47,411		47,411	47,188
Restricted funds					16,603	16,603	26,936
Total Funds	22	729,446	137,678	47,411	16,603	931,138	928,231

I confirm that I have prepared the accounts from the records of the circuit and that they include all funds under the control of the Circuit.

Peter Hardy

Date

17th June 2021

I confirm that the Accounts have been presented to the Circuit Meeting on 28.11.19 and were approved.

Signature of the Chair of the Meeting

Rev. Pauline Salter

17th June 2021

Date

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STAFFORD 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 under the Charities Act 2011 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 Stafford 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 the trustees present accounts that show a true and fair view of the Circuit's financial position and activities.

iv Content

The financial information 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 Going concern

Based on the monetary assets and human resources available at 31 August 2020, the trustees believe that the Circuit is a going concern.

vi 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.

vii Income Recognition

Income is included in the Statement of Financial Activities (SOFA) when the Circuit becomes entitled to the resources, and the trustees are reasonably certain they will receive the resources; and the monetary value can be measured with sufficient reliability.

viii 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.

ix Grants

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 is recurrent over more than one year the balance payable in future years is treated as a provision for future commitments in the Balance Sheet against the appropriate fund, the provision being released in future years as instalments are paid in accordance with the originally agreed terms.

x VAT

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

xi Tangible fixed assets for use by the Circuit

These are capitalised if they can be used for more than one year, and individually cost at least £1,000.

The freehold property is shown in the accounts at 2015 deemed values, of which the land component is deemed to be £150,000. No depreciation is provided on the buildings because the trustees consider the current residual value of the property in its present condition to be not less than its current value, and in the absence of any evidence of impairment, any depreciation provision would not be material.

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STAFFORD METHODIST CIRCUIT

Notes to the Accounts for the year ending 31 August 2020 (continued)

xi Tangible fixed assets for use by the Circuit - continued

From time to time the Circuit may be required to assume responsibility for Church premises following closure and cessation for 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 likley to enhance sales 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.

xii 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.

xiii Investment Property

From time to time the Circuit may hold residential property (formerly 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 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. There are currently no properties regarded as Investment Properties.

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

Debtors are stated at the amount owed to the Circuit or prepaid. 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 Funds

The trustees have adopted a policy for all unrestricted reserves which is set out in the Trustees Report.

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STAFFORD METHODIST CIRCUIT

Notes to the Accounts for the year ending 31 August 2020 (continued)

2 Donations and Legacies

Donations and Legacies
	Unrestricted General Fund Circuit Model Trust FundRestricted 2020 £ £ £ £	Unrestricted General Fund Circuit Model Trust FundRestricted 2019 £ £ £ £
Donations Legacies		- - 31,248 31,248 - - - - - - 31,248 31,248 Unrestricted CMTF Restricted 2019 £ £ £ £
	1,193 - - 1,193 - 1,180 - 1,180 - - - - 1,193 1,180 - 2,373	1,205 - - 1,205 - 1,197 - 1,197 - - - - 1,205 1,197 - 2,402
Total

3 Income from Monetary Investments

4 Assessments on Churches

At the beginning of the year, the Circuit comprised of 12 churches and each was assessed for a contribution to meet the overall net costs of the Circuit. For several years the Circuit has been engaged in a plan to ensure that each church's contribution is assessed on a fairer basis than that used in the past. The method used takes account, to varying degrees, of membership, attendance and income, utilising an annual cap on the size of individual annual adjustments.

5 Capital Receipts

There were no capital receipts during the year (2019: nil).

6 Grants Receivable

Grants Receivable
	Unrestricted General Fund Circuit Model Trust FundRestricted 2020 £ £ £ £	Unrestricted General Fund Circuit Model Trust FundRestricted 2019 £ £ £ £
District Advance Fund Total Property Rentals Letting - non-investment property Office space Woodseaves Total	- - - - - - - - Unrestricted General Fund Circuit Model Trust FundRestricted 2020 £ £ £ £	- - - - - - - - Unrestricted General Fund Circuit Model Trust FundRestricted 2019 £ £ £ £
	9,240 - - 9,240 1,836 - - 1,836 - 11,076 - - 11,076	8,232 - - 8,232 2,106 - - 2,106 3,290 3,290 13,628 - - 13,628

7 Property Rentals

The Circuit's manse in Widecombe Avenue is curently let on a short-term basis. It is still anticipated that it may again be required to house a Minister in the next 1 to 2 years. Following the closure of Woodseaves Methodist Church on 31 December 2018, the premises continued to be let out to a local Playgroup on a short-term basis.

8 Other Income

Other Income
Balance on closure - Woodseaves Church Total	Unrestricted General Fund Circuit Model Trust FundRestricted 2020 £ £ £ £	Unrestricted General Fund Circuit Model Trust FundRestricted 2019 £ £ £ £
	- - - - - - - -	3,915 - - 3,915 3,915 - - 3,915

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STAFFORD METHODIST CIRCUIT

Notes to the Accounts for the year ending 31 August 2020 (continued)

9 Stipends & Salaries

Ministers - Stipends were paid to 2 Methodist Presbyters (2.0 FTE) (2018-19 2 Presbyters (2.5 FTE)):-

Stipends & Allowances National Insurance Pension Costs	Unrestricted General Fund Circuit Model Trust Fund Restricted 2020 £ £ £ £ 53,019 53,019 4,852 4,852 13,370 13,370 71,241 0 0 71,241	Unrestricted General Fund Circuit Model Trust Fund Restricted 2019 £ £ £ £
		51,074 51,074 4,621 4,621 13,002 13,002
		68,697 0 0 68,697

In addition, a United Reformed Church Minister worked in the Circuit during 2017/18 on a part time basis - see note 12.

Lay employees - Salaries were paid to 6 Lay Employees (3.7 FTE) (2017-18 2.5 FTE).

Salaries National Insurance Pension Costs Total	57,042 24,635 81,677 3,243 2,200 5,443 2,021 1,478 3,499 62,306 0 28,313 90,619 133,547 0 28,313 161,860	56,487 23,964 80,451 2,866 2,133 4,999 2,143 1,438 3,581
		61,496 0 27,535 89,031
		130,193 0 27,535 157,728

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.

Pensions

Most ordained presbyters are members of the Methodist Ministers' Pension Scheme, which is a defined benefit scheme. The Supreme Court held in 2014 that Methodist ministers are not employees of the Church. For simplicy, 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 Pension Trust.

9a Costs of Superintendent, Presbyters and Trustees

The Suprintendent of the Circuit, the other Presbyters and the remaining members of the Circuit Leadership Team (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 (one manse in the Circuit is owned by the United Reformed Church (URC) and is maintained jointly under a sharing agreement). The value of Council Tax and water charges is not disclosed here as HMRC does not regard this as a benefit-in-kind in the hands of the minister.

Payments to Trustees

Apart from the Presbyters, Circuit Administrator, and Circuit Lay Workers, no member of the Circuit Meeting was in receipt of any payment for work undertaken on behalf of the Circuit, although certain travelling and administration costs were reimbursed in particular cases.

Three trustees (Circuit Administrator and 2 Pastoral Layworkers) are employees of the Circuit and are in receipt of salaries and other employment related expenses.

2020 6 Total amount paid 8,061 £ Expense payments primarily relate to reimbursement for travel, stationery and computing costs. £ Number of trustees who were paid expenses	2019
	7
	8,744

15

STAFFORD METHODIST CIRCUIT

Notes to the Accounts for the year ending 31 August 2020 (continued)

10 District Assessment & Levy

In common with other circuits in the District, the Circuit pays an annual assessment to the Wolverhampton & Shewsbury District of the Methodist Church, which is based on the number of Methodist Presbyters and Lay Workers within each circuit. The Levy is calculated on a sliding scale percentage of the balance of the Circuit's CMTF at 31 August in the previous accounting year.

District Assessment District Levy	Unrestricted General Fund Circuit Model Trust Fund Restricted 2020 Unrestricted General Fund Circuit Model Trust Fund Restricted 2019 40,266 - - 40,266 40,131 - - 40,131 - 4,567 - 4,567 - 4,760 - 4,760
	40,266 4,567 - 44,833 40,131 4,760 - 44,891

11 URC Mission & Ministry

Two churches in the Circuit - St John's and Trinity, are Methodist/URC Local Eccumenical Partnerships. The URC Synod makes an annual charge relating to its general costs and specifically to the cost of ministry provided to the two churches concerned, where applicable. In the year to 31 August 2020: NIL (2019: NIL) of a URC Minister's time was allocated in respect of the URC presence within the Circuit and this cost, together with other URC costs allocated on a deemed 50/50 Methodist/URC membership, is regarded as a Circuit cost.

The total cost for the year ended 31st August 2020 was £6,787 (2019: 10,796).

12 Property Costs

The Circuit is Managing Trustee for 3 manses or former manses. In addition to one manse which houses one of the Circuit's Ministers, one former manse is used as the Circuit Office, whilst another is let on a short-term basis pending it being brought back into use as a manse. A further manse in the Circuit is owned by the URC and is maintained jointly under a sharing agreement.

Insurance, Council Tax & Utilities General Maintenance & other property	2020 £ 10,111 9,346 19,457	2019 £ 10,380 4,316
		14,696

The Circuit holds a Property Refurbishment Fund (a designated fund of the Circuit) to provide for unforseen and significant repairs which may be required from time to time. During the year £nil was transferred into this fund from the General Fund, bringing the total to £15,000 (2019: £15,000) at the end of the year.

13 Telephone & Travelling Expenses

Telephone Costs Travelling Expenses	Unrestricted General Fund Circuit Model Trust FundRestricted 2020 £ £ £ £ 3,376 - - 3,376 6,025 - 264 6,289 9,401 - 264 9,665	Unrestricted General Fund Circuit Model Trust FundRestricted 2019 £ £ £ £
		4,238 - - 4,238 9,700 - 333 10,033
		13,938 - 333 14,271

14 Other Expenditure

Other Expenditure
Youth/Children's Work Maternity Leave Cover Independent Examination Training Ministers' Removal Costs St Johns M&D Fund Miscellaneous	Unrestricted General Fund Circuit Model Trust FundRestricted 2020 £ £ £ £ 522 - - 522 0 - - 0 690 - - 690 870 - - 870 0 - - 0 0 - - 0 2,894 283 300 3,477 4,976 283 300 5,559	Unrestricted General Fund Circuit Model Trust FundRestricted 2019 £ £ £ £
		211 - 205 416 0 - - 0 660 - - 660 458 - - 458 0 - - 0 0 - - 0 1,831 291 - 2,122
		3,160 291 205 3,656

16

STAFFORD METHODIST CIRCUIT

Notes to the Accounts for the year ending 31 August 2020 (continued)

15 Tangible Fixed Assets

Cost or valuation

Cost or valuation
	Residential Land £	Other Land £	Manses £*	Other Buildings £**	Other fixed assets including motor vehicles £	Fixtures, fittings and equipment £	Payments on account and assets under construction £	Total £
Balance brought forward	150,000	-	175,000	275,000	-	-	-	600,000
Additions	-	-	-	-	-	-	-	-
Revaluations(+/-)	-	-	-	-	-	-	-	-
Disposals(-)	-	-	-	-	-	-	-	-
Transfers *(+/-)	-	-	-	-	-	-	-	-
Balance carried forward	150,000	-	175,000	275,000	-	-	-	600,000

Accumulated depreciation

Accumulated depreciation
*Basis* Rate			SL or RB	SL or RB	SL or RB	SL or RB
Balance brought forward	-	-	-	-	-	-	-	-
Depreciation charge foryear(-)	-	-	-	-	-	-	-	-
Revaluations(+/-)	-	-	-	-	-	-	-	-
Disposals(-)	-	-	-	-	-	-	-	-
Transfers*(+/-)	-	-	-	-	-	-	-	-
Balance carried forward	-	-	-	-	-	-	-	-
Net book value
Brought forward	150,000	-	175,000	275,000	-	-	-	600,000
Carried forward	150,000	-	175,000	275,000	-	-	-	600,000

Manses comprise one manse in Gnosall. *Other buildings comprise two former manses; one now used as the Circuit Office and one which is temporarily being let. It is anticipated that the latter may be brought back into use as a manse within the next two years.

17

STAFFORD METHODIST CIRCUIT

Notes to the Accounts for the year ending 31 August 2020 (continued)

16 Debtors & Prepayments

Stipend paid in error Prepayments - Stipends etc paid in advance Other Prepayments	Unrestricted General Fund Circuit Model Trust FundRestricted 2020 £ £ £ £ - - - - 6,025 - - 6,025 1,344 - - 1,344 7,369 0 0 7,369	Unrestricted General Fund Circuit Model Trust Fund Restricted 2019 £ £ £ £ - - - - 5,865 - - 5,865 1,711 - - 1,711
		7,576 0 0 7,576

17 Loans to Churches

Church	Date Granted	Amount	Period	Balance	Repaid	Balance
				B/fwd	this year	C/fwd
Gnosall (property repairs)	21.04.16	£5,000	4 Years	1,250	1,250		0

18 Central Finance Board and Bank Balances

Central Finance Board NatWest Bank CAF Bank HSBC Bank Cash	Unrestricted General Fund Circuit Model Trust FundRestricted 2020 £ £ £ £ 137,722 - 16,603 154,325 3,349 - - 3,349 67,304 - - 67,304 472 - - 472 - - - - 71,125 0 0 71,125	Unrestricted General Fund Circuit Model Trust Fund Restricted 2019 £ £ £ £ 196,864 - 26,990 223,854
		4,713 - - 4,713 8,393 - - 8,393 1,344 - - 1,344 - - - -
		14,450 0 0 14,450

19 Trustees for Methodist Church Purposes (TMCP)

The funds that support the Circuit Model Trust Fund are held by TMCP in the Trustees Interest Fund on which interest is credited each month. TMCP is the legal owner and custodian trustee of all Methodist model trust property, including legacies, endowments and accumulated funds.

20 Creditors, Accruals and Income in advance

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

Income in Advance Assessments in advance Rent Creditors & Accruals Funds held for Churches URC M & M Costs A/c's Examination Travelling Expenses Utilities & insurance Other Property Costs Salaries Other	Unrestricted General Fund Circuit Model Trust FundRestricted 2020	Unrestricted General Fund Circuit Model Trust Fund Restricted 2019
	£ £ £ £ 41,989 - - 41,989 - - - - (4,779) - - (4,779) - - - - 720 - - 720 266 - 0 266 720 - - 720 - - - - 0 1,220 - - 1,220 40,137 0 0 40,137	£ £ £ £ 41,989 - - 41,989 - - - 0 14,767 - - 14,767 - - - 0 690 - - 690 729 - 54 783 853 - - 853 - - - 0 865 865 300 - - 300
		60,193 0 54 60,247

21 Capital Commitments and Contingent Liabilities

At 31st August 2020 the Circuit had no capital commitments. No Contingent liabilities were identified at 31st August 2020.

18

STAFFORD METHODIST CIRCUIT

Notes to the Accounts for the year ending 31 August 2020 (continued)

22. Summary of Fund movements

Unrestricted Funds

Unrestricted Fund Name	Unrestricted Fund Name	Opening Balance	Income	**Expenditure **	Transfers	Closing Balance	Purpose of the fund
		£	£	£	£	£
General		712,759	236,030	219,120		729,669	Generalpurposes
Circuit Model Trust Fund		141,348	1,180	4,850		137,678	Generalpurposes
Property Refurbishment Fund		15,000				15,000	Provision for future refurbishments/major repairs
St John's M&D Fund		31,196				31,196	Mission & Development at St John's,Stone
Superintendent's Discretionary		992				992	Discretionaryspend in cases of local need etc.
Totals		901,295	237,210	223,970		914,535
Restricted Funds
Restricted Fund Name		Opening Balance	Income	**Expenditure **	Transfers	Closing Balance	Purpose of the fund
Children's Worker Fund		26,936	18,544	28,877		16,603	Funded from private donations for the employment of a Schools Worker, employed by the Circuit but based in Berkswich Church
	Total of all Funds
		928,231	255,754	252,847		931,138

23. Related Parties

Related Parties include The Methodist Connexion, the Wolverhampton & Shrewsbury District, Churches within the Circuit (listed below), CFB and TMCP.

Churches within the Circuit:

Barlaston Berkswich Bishops Offley Eccleshall Gnosall Milwich (Anglican/Methodist) Rising Brook Rowley Street (closed 31.08.2019) St Johns, Stone (Methodist/URC) Trinity, Stafford (Methodist/URC) Weston Woodseaves (closed 31.12.2018)

24. Leasing Commitments

At 31 August 2020 the Charity had commitments under non-cancellable operating leases as follows:-

£

Total liability payable over 2 years 2,208

19