**REGISTERED CHARITY NUMBER: 1135822**
**REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **FOR**
## **STAFFORD METHODIST CIRCUIT**
Crombies Accountants Limited Chartered Accountants 34 Waterloo Road Wolverhampton West Midlands WV1 4DG
**STAFFORD METHODIST CIRCUIT**
## **CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
||**Page**|
|---|---|
|**Reference and Administrative Details**|1 to 2|
|**Report of the Trustees**|3 to 6|
|**Statement of Trustees' Responsibilities**|7|
|**Independent Examiner's Report**|8|
|**Statement of Financial Activities**|9|
|**Balance Sheet**|10|
|**Cash Flow Statement**|11|
|**Notes to the Cash Flow Statement**|12|
|**Notes to the Financial Statements**|13 to 22|
|**Detailed Statement of Financial Activities**|23|
**STAFFORD METHODIST CIRCUIT**
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## **FOR THE YEAR ENDED 31 AUGUST 2021**
## **MINISTERS**
Rev. P M Salter Rev. J Kaci
## **LAYWORKERS**
Mrs C A Hamer Mrs I J Wakerell
## **CIRCUIT STEWARDS**
Dr P C Yates Mr P W Hardy Mrs J D Wood Mrs J Harrison (from 20/4/21)
## **CIRCUIT MEETING SECRETARY**
Mrs L B Reade
**LOCAL PREACHERS REPRESENTATIVES**
Mrs G F Ashmore Mrs M E Winnington
## **CIRCUIT REPRESENTATIVES TO SYNOD**
Mr P Hardy Mrs V Bates Dr S McCready-Shea Mrs M E Hemingway
## **CHURCH REPRESENTATIVES**
**Barlaston**
Mrs K A Ford Mrs K M Bradburn
## **Berkswich**
Mr D C East Mrs C East Mrs P Roberts Mrs L M Westoby Mr T A S Goodchild
## **Bishops Offley**
Mrs M E Hemingway Mrs J Palin Mrs A Hardy
## **Eccleshall**
Mrs C Harper Mrs D H Kirkham Mrs M Embrey
**Gnosall**
Mr W D Basford Mr T H Harrison Mrs J Jobling
## **Milwich**
Mr R W Knight Mrs E Hodson
Page 1
**STAFFORD METHODIST CIRCUIT**
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## **FOR THE YEAR ENDED 31 AUGUST 2021**
**Rising Brook** Mr I F Baldwin Mrs I M Cantrill Mrs S Watson(to 15/10) Mrs S Francis (from 30/10)
**St. John's Stone**
Mrs A Dair Mr A R Heath Mr D C Stewart
**Trinity Stafford** Miss W E Harris Mr T Houghton Mr A Lowe Miss L Birch
**Weston** Mrs B Gillespie Mr C Gillespie
## **PRINCIPAL ADDRESS**
Circuit Office Asbury House Merrey Road Stafford ST17 9LX
**REGISTERED CHARITY** 1135822 **NUMBER INDEPENDENT EXAMINER** Crombies Accountants Limited Chartered Accountants 34 Waterloo Road Wolverhampton West Midlands WV1 4DG
**INVESTMENT BANKERS** Central Finance Board of the Methodist Church 9 Bonhill Street London EC2A 4PE
The Trustees for Methodist Church Purposes Central Buildings Oldham Street Manchester M1 1JQ
Page 2
**STAFFORD METHODIST CIRCUIT**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021**
The trustees present their report with the financial statements of the charity for the year ended 31 August 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
## **OBJECTIVES AND ACTIVITIES**
## **Objectives and aims**
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 orancillary 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.
Page 3
**STAFFORD METHODIST CIRCUIT**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021**
## **ACHIEVEMENT AND PERFORMANCE Charitable activities**
2020/2021 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. Two of our churches closed before the pandemic. We have tried to find a mission purpose for Woodseaves so the plan is to sell the building and land in the next connexional year if possible.
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. We continually tried to move the sale on but with people working from home and the pressures of the pandemic TMCP were taking 4 months to answer emails. The plan is to persevere and reach a point in 2021/2022 where the building can be sold.
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. Churches reopened tentatively in September 2020. In person worship was 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. However by winter of 2020 with cases rising we again had to make the decision to close buildings. A prerecorded act of worship continued to be provided every week. These services are compiled and led by preachers ministers and members of the churches. Some churches had really embraced online worship and fellowship. This meant that people could access online, prayer meetings, fellowship groups and Sunday services. 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.
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 for long periods of time. The return to using our buildings by various user groups has been slow. 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. 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**
## **Financial position**
Circuit income is drawn primarily from the assessments paid by the circuit member churches, and during the year these totalled £224,627 (2020: £223,761). During the year the circuit also received donations of bank funds and redundant church properties valued at £325,000 from Rowley Street and Woodseaves churches. As a result of these exceptional items, the circuit has an overall surplus for the year of £306,563 (2020: £2,907).
Towards the middle of the financial year the CLT undertook a review of the impact that the pandemic had made upon the income of churches in the Circuit. It was clear from this, that the income of some churches, particularly those with a significant proportion of their income being from lettings, had been affected badly. In light of this, and considering the Circuit reserves were at a sufficient level to allow a response, the Circuit Meeting approved grants being made to all churches based on a formula which reflected their loss of income. These grants totalled £44,352 and were paid in two instalments before the end August, a third is approved and planned upon the sale of Rowley Street (expected in 21-22 accounts).
As at 31 August 2021, unrestricted funds, excluding Land and Buildings, stood at £301,591 (2020: £314,535) of which £266,435 (2020: 267,124) was not designated for any particular purposes. Given the ongoing Covid pandemic, the Circuit Leadership Team felt it was necessary to maintain a position of responsiveness and that it would be inappropriate to reduce the free reserves at this time. Accordingly no further transfers to designated funds have been made during the year.
Page 4
**STAFFORD METHODIST CIRCUIT**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021**
## **FINANCIAL REVIEW 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.
## **Redundant Property Fund**
The Circuit received a considerable and extraordinary income in the year from the transfer of the assets of two churches which had ceased to meet, namely Rowley Street and Woodseaves. It was decided that, rather than absorbing these into the General Fund, a specific unrestricted fund be set up to manage and report the income and expenditure for these properties. This has been named the 'Redundant Property Fund.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document**
The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.
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).
## **Induction and training of new trustees**
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, St Johns, Stone (LEP), Trinity (LEP), Weston.
## **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.
Page 5
**STAFFORD METHODIST CIRCUIT**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT 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.
- 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.
Approved by order of the board of trustees on 23 June 2022 and signed on its behalf by:
Rev P M Salter - Trustee
Page 6
**STAFFORD METHODIST CIRCUIT**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2021**
The trustees are responsible for preparing the Report of the Trustees and the 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, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed 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, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charity SORP;
- 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 business.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to 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.
Page 7
**INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF STAFFORD METHODIST CIRCUIT**
## **Independent examiner's report to the trustees of Stafford Methodist Circuit**
I report to the charity trustees on my examination of the accounts of Stafford Methodist Circuit (the Trust) for the year ended 31 August 2021.
## **Responsibilities and basis of report**
As the charity trustees of the Trust 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 Trust'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 your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of Chartered Accountant 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 Trust 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.
Ian Cattell FCA Chartered Accountant Crombies Accountants Limited Chartered Accountants 34 Waterloo Road Wolverhampton West Midlands WV1 4DG
23 June 2022
Page 8
**STAFFORD METHODIST CIRCUIT**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2021**
|Notes
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
2
**Charitable activities**
5
Assessments on Churches
Rents received
Other trading activities
3
Investment income
4
**Total**
**EXPENDITURE ON**
**Charitable activities**
6
District Assessment & Levy
Support costs
Stipends,salaries,NIC & Pensions
URC Mission & Ministry
Office Expenses
Telephone & Travelling Expenses
Property Expenses
Grants to churches
**Total**
**NET INCOME/(EXPENDITURE)**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
funds
£
353,846
224,627
11,016
2,082
698
592,269
44,007
7,147
137,156
8,621
20,405
6,076
12,449
44,352
280,213
312,056
914,535
1,226,591|Restricted
fund
£
18,746
-
-
4,856
-
23,602
-
-
29,094
-
-
-
-
-
29,094
(5,492)
16,603
11,111|2021
Total
funds
£
372,592
224,627
11,016
6,938
698
615,871
44,007
7,147
166,250
8,621
20,405
6,076
12,449
44,352
309,307
306,564
931,138
1,237,702|2020
Total
funds
£
18,544
223,761
11,076
-
2,373
255,754
44,833
5,559
161,860
6,787
4,686
9,665
19,457
-
252,847
2,907
928,231
931,138|
|---|---|---|---|---|
The notes form part of these financial statements
Page 9
## **STAFFORD METHODIST CIRCUIT**
## **BALANCE SHEET 31 AUGUST 2021**
|Notes
**FIXED ASSETS**
Tangible assets
13
**CURRENT ASSETS**
Debtors
14
Cash at bank
15
**CREDITORS**
Amounts falling due within one year
16
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
**NET ASSETS**
**FUNDS**
18
Unrestricted funds
Restricted funds
**TOTAL FUNDS**|Unrestricted
funds
£
925,000
7,581
333,233
340,814
(39,223)
301,591
1,226,591
1,226,591|Restricted
fund
£
-
-
11,111
11,111
-
11,111
11,111
11,111|2021
Total
funds
£
925,000
7,581
344,344
351,925
(39,223)
312,702
1,237,702
1,237,702
1,226,591
11,111
1,237,702|2020
Total
funds
£
600,000
7,369
367,254
374,623
(43,485)
331,138
931,138
931,138
914,535
16,603
931,138|
|---|---|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on 23 June 2022 and were signed on its behalf by:
P W Hardy - Trustee
The notes form part of these financial statements
Page 10
## **STAFFORD METHODIST CIRCUIT**
|**CASH FLOW STATEMENT**
**FOR THE YEAR ENDED 31 AUGUST 2021**
2021
Notes
£
**Cash flows from operating activities**
Cash generated from operations
1
295,969
Net cash provided by/(used in) operating activities
295,969
**Cash flows from investing activities**
Purchase of tangible fixed assets
(325,000)
Interest received
698
Net cash (used in)/provided by investing activities
(324,302)
**Change in cash and cash equivalents in**
**the reporting period**
(28,333)
**Cash and cash equivalents at the**
**beginning of the reporting period**
2
363,905
**Cash and cash equivalents at the end of**
**the reporting period**
2
335,572|2020
£
(18,120)
(18,120)
-
2,373
2,373
(15,747)
379,652
363,905|
|---|---|
The notes form part of these financial statements
Page 11
**STAFFORD METHODIST CIRCUIT**
## **NOTES TO THE CASH FLOW STATEMENT**
## **FOR THE YEAR ENDED 31 AUGUST 2021**
## **1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES**
|**Net income for the reporting period (as per the Statement of Financial**
**Activities)**
**Adjustments for:**
Interest received
(Increase)/decrease in debtors
Decrease in creditors
**Net cash provided by/(used in) operations**
**2.**
**ANALYSIS OF CASH AND CASH EQUIVALENTS**
Notice deposits (less than 3 months)
Overdrafts included in bank loans and overdrafts falling due within one year
Total cash and cash equivalents|2021
£
306,564
(698)
(212)
(9,685)
295,969
2021
£
344,344
(8,772)
335,572|2020
£
2,907
(2,373)
207
(18,861)
(18,120)
2020
£
367,254
(3,349)
363,905|
|---|---|---|
3. **ANALYSIS OF CHANGES IN NET FUNDS**
||At 1.9.20|Cash flow|At 31.8.21|
|---|---|---|---|
||£|£|£|
|**Net cash**||||
|Cash at bank|367,254|(22,910)|344,344|
|Bank overdraft|(3,349)|(5,423)|(8,772)|
||363,905|(28,333)|335,572|
|**Total**|363,905|(28,333)|335,572|
The notes form part of these financial statements
Page 12
**STAFFORD METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **1. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.
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.
## **Going concern**
In common with many entities the effects of the Covid -19 Pandemic have had an impact on the activities of the Circuit and its member Churches. However based upon the monetary assets and human resources available at 31 August 2021, the trustees believe that the Circuit is a going concern.
## **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.
## **Income**
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.
## **Expenditure**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
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.
## **Tangible fixed assets**
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. 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. Any expenditure on such assets, if held for reinvestment of the proceeds, as the trustees determine, that is likely 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.
continued...
Page 13
**STAFFORD METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021**
## **1. ACCOUNTING POLICIES - continued**
## **Taxation**
The charity is exempt from tax on its charitable activities.
## **Fund accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## **Pension costs**
The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
The Circuit is a member of the Connexional pension scheme (MMPS) which covers presbyters and deacons of the Methodist Church. The contribution rates are set each year by the Methodist Conference. The MMPS is a multi-employer scheme and in accordance with the guidance issued by the Charity Commission, the Circuit accounts for these contributions as if it were a defined contribution scheme. The Circuit also has four lay employees enrolled in a defined contribution pension scheme administered by The Pension Trust. Employer contributions are made into this scheme on behalf of employees who are members.
## **2. DONATIONS AND LEGACIES**
|Donations and transfers
Gift aid
**3.**
**OTHER TRADING ACTIVITIES**
Other income
**4.**
**INVESTMENT INCOME**
Deposit account interest|2021
£
366,346
6,246
372,592
2021
£
6,938
2021
£
698|2020
£
18,544
-
18,544
2020
£
-
2020
£
2,373|
|---|---|---|
continued...
Page 14
**STAFFORD METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021**
## **5. INCOME FROM CHARITABLE ACTIVITIES**
|Activity
Assessment on churches
Assessments on Churches
Lettings-non-investment
property
Rents received
Office space
Rents received|2021
£
224,627
9,240
1,776
235,643|2020
£
223,761
9,240
1,836|
|---|---|---|
|||234,837|
## **Assessments on Churches**
At the beginning of the year, the Circuit comprised of 10 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.
## **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.
## **6. CHARITABLE ACTIVITIES COSTS**
|District Assessment & Levy
Support costs
Stipends,salaries,NIC & Pensions
URC Mission & Ministry
Office Expenses
Telephone & Travelling Expenses
Property Expenses
Grants to churches|Direct
Costs
£
44,007
4,747
166,250
8,621
20,405
6,076
12,449
-
262,555|Grant
funding of
activities
(see note
7)
£
-
-
-
-
-
-
-
44,352
44,352|Support
costs (see
note 8)
£
-
2,400
-
-
-
-
-
-
2,400|Totals
£
44,007
7,147
166,250
8,621
20,405
6,076
12,449
44,352|
|---|---|---|---|---|
|||||309,307|
## **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
## **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 2021: NIL (2020: 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 2021 was £8,620.50 (2020: £6,787).
## **Property Costs**
Page 15
continued...
**STAFFORD METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021**
## **6. CHARITABLE ACTIVITIES COSTS - continued**
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.
## **7. GRANTS PAYABLE**
|Grants to churches
The total grants paid to institutions during the year was as follows:
Donations to Churches|2021
£
44,352
2021
£
44,352|2020
£
-
2020
£
-|
|---|---|---|
## **8. SUPPORT COSTS**
|**SUPPORT COSTS**||
|---|---|
||Governance|
||costs|
||£|
|Support costs|2,400|
## **9. TRUSTEES' REMUNERATION AND BENEFITS**
Certain trustees are remunerated as employees of the Circuit. All payments to trustees are at normal market rates and are subject to review by independent members of the trustee body. Total annual amounts paid to trustees were as follows:
Stipends and salaries - £102,015 Employer's national insurance contributions - £8,399 Employer's contributions to defined benefit pension scheme - £1,818
## **Trustees' expenses**
There were no trustees' expenses paid for the year ended 31 August 2021 nor for the year ended 31 August 2020.
## **10. STAFF COSTS**
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.
Page 16
continued...
**STAFFORD METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021**
## **10. STAFF COSTS - continued**
The average monthly number of employees during the year was as follows:
|Methodist Presbyters
Lay employees
No employees received emoluments in excess of £60,000.
**11.**
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
Unrestricted
funds
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
-
**Charitable activities**
Assessments on Churches
223,761
Rents received
11,076
Investment income
2,373
**Total**
237,210
**EXPENDITURE ON**
**Charitable activities**
District Assessment & Levy
44,833
Support costs
5,259
Stipends,salaries,NIC & Pensions
133,547
URC Mission & Ministry
6,787
Office Expenses
4,686
Telephone & Travelling Expenses
9,401
Property Expenses
19,457
**Total**
223,970
**NET INCOME/(EXPENDITURE)**
13,240
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
901,295
**TOTAL FUNDS CARRIED FORWARD**
914,535|2021
2
6
8
Restricted
fund
£
18,544
-
-
-
18,544
-
300
28,313
-
-
264
-
28,877
(10,333)
26,936
16,603|2020
2
6
8
Total
funds
£
18,544
223,761
11,076
2,373
255,754
44,833
5,559
161,860
6,787
4,686
9,665
19,457
252,847
2,907
928,231
931,138|
|---|---|---|
continued...
Page 17
**STAFFORD METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS - continued**
## **FOR THE YEAR ENDED 31 AUGUST 2021**
## **12. FUNDS**
The funds held constitute:
## **Unrestricted Funds**
## **General Fund**
The purpose of the fund is for use at the discretion of the trustees in the furtherance of the general objectives of the Circuit.
## **Circuit Model Trust Fund**
This consists of income from churches. They have wide purposes as defined by the Trustees for Methodist Church Purposes (TMCP). Permission must be sought from TMCP to call on money for specific building projects or to support the mission in general.
## **Property Refurbishment Fund**
This fund is used by the trustees as a provision for future refurbishments and major repairs as at the balance sheet date and is categorized as unrestricted designated fund. There was no movement in this fund.
## **St John's M&D 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.
## **Superintendent's Discretionary Fund**
The fund is for discretionary spend in cases of local needs and is categorized as unrestricted designated fund. There was no movement in this fund.
## **Redundant property fund**
These monies have been ring fenced for the development of redundant churches whose assets were transferred to the circuit.
## **Restricted Funds**
## **Children's Worker Fund**
Funds are received from private donations for the employment of a Schools Worker, employed by the Circuit but based in Berkswich Church.
## **13. TANGIBLE FIXED ASSETS**
|Residential
land
£
**COST**
At 1 September 2020
150,000
Additions
-
At 31 August 2021
150,000
**NET BOOK VALUE**
At 31 August 2021
150,000
At 31 August 2020
150,000|Manses
£
175,000
-
175,000
175,000
175,000|Other
buildings
£
275,000
325,000
600,000
600,000
275,000|Totals
£
600,000
325,000|
|---|---|---|---|
||||925,000|
||||925,000|
||||600,000|
continued...
Page 18
**STAFFORD METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021**
## **14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
|Prepayments
**15.**
**CASH AT BANK AND IN HAND**
Central Finance Board
CAF bank
Trustees for Methodist Church purposes
Lloyds Bank
Total
Central Finance Board
Natwest Bank
CAF bank
HSBC Bank
Trustees for Methodist Church purposes
Lloyds Bank
CBF Church of England Fund
Total|Redundant
property
fund
£
-
1,334
-
1,718
-
-
25,000
28,052|2021
2020
£
£
7,581
7,369
General
Circuit
Designated
fund
Model Trust
Fund
£
£
£
86,871
4,208
43,506
36,294
-
-
-
133,470
-
832
-
-
123,997
137,678
43,506
2021
2020
Childrens
Total
Total
worker fund
funds
funds
£
£
£
11,111
145,696
157,674
-
1,334
4,126
-
36,294
67,304
-
1,718
-
-
133,470
137,678
-
832
472
-
25,000
-
11,111
344,344
367,254|
|---|---|---|
## **16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
|Bank loans and overdrafts (see note 17)
Funds held for churches
Accounts examination
Assessments in advance
Travelling expenses
Other|2021
£
8,772
(5,191)
2,400
33,242
-
-
39,223|2020
£
3,349
(4,779)
720
41,989
266
1,940
43,485|
|---|---|---|
continued...
Page 19
**STAFFORD METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS - continued**
## **FOR THE YEAR ENDED 31 AUGUST 2021**
## **17. LOANS**
An analysis of the maturity of loans is given below:
||2021|2020|
|---|---|---|
||£|£|
|Amounts falling due within one year on demand:|||
|Bank overdrafts|8,772|3,349|
## **18. MOVEMENT IN FUNDS**
|**Unrestricted funds**
General fund
Circuit Model Trust
Designated Fund
Redundant property fund
**Restricted funds**
Childrens worker fund
**TOTAL FUNDS**
Net movement in funds, included in the above are as follows:
**Unrestricted funds**
General fund
Designated Fund
Redundant property fund
**Restricted funds**
Childrens worker fund
**TOTAL FUNDS**|At 1.9.20
£
729,446
137,678
47,411
-
914,535
16,603
931,138
Incoming
resources
£
237,353
1,004
353,912
592,269
23,602
615,871|Net
movement
At
in funds
31.8.21
£
£
(28,319)
701,127
-
137,678
(3,905)
43,506
344,280
344,280
312,056
1,226,591
(5,492)
11,111
306,564
1,237,702
Resources
Movement
expended
in funds
£
£
(265,672)
(28,319)
(4,909)
(3,905)
(9,632)
344,280
(280,213)
312,056
(29,094)
(5,492)
(309,307)
306,564|
|---|---|---|
continued...
Page 20
**STAFFORD METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS - continued**
## **FOR THE YEAR ENDED 31 AUGUST 2021**
## **18. MOVEMENT IN FUNDS - continued**
## **Comparatives for movement in funds**
|At 1.9.19
£
**Unrestricted funds**
General fund
712,759
Circuit Model Trust
141,348
Designated Fund
47,188
901,295
**Restricted funds**
Childrens worker fund
26,936
**TOTAL FUNDS**
928,231
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
**Unrestricted funds**
General fund
235,807
Circuit Model Trust
1,180
Designated Fund
223
237,210
**Restricted funds**
Childrens worker fund
18,544
**TOTAL FUNDS**
255,754|Net
movement
At
in funds
31.8.20
£
£
16,687
729,446
(3,670)
137,678
223
47,411
13,240
914,535
(10,333)
16,603
2,907
931,138
Resources
Movement
expended
in funds
£
£
(219,120)
16,687
(4,850)
(3,670)
-
223
(223,970)
13,240
(28,877)
(10,333)
(252,847)
2,907|
|---|---|
A current year 12 months and prior year 12 months combined position is as follows:
|**Unrestricted funds**
General fund
Circuit Model Trust
Designated Fund
Redundant property fund
**Restricted funds**
Childrens worker fund
**TOTAL FUNDS**|At 1.9.19
£
712,759
141,348
47,188
-
901,295
26,936
928,231|Net
movement
At
in funds
31.8.21
£
£
(11,632)
701,127
(3,670)
137,678
(3,682)
43,506
344,280
344,280
325,296
1,226,591
(15,825)
11,111
309,471
1,237,702|
|---|---|---|
continued...
Page 21
**STAFFORD METHODIST CIRCUIT**
## **NOTES TO THE FINANCIAL STATEMENTS - continued**
## **FOR THE YEAR ENDED 31 AUGUST 2021**
## **18. MOVEMENT IN FUNDS - continued**
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
Circuit Model Trust
Designated Fund
Redundant property fund
**Restricted funds**
Childrens worker fund
**TOTAL FUNDS**|Incoming
resources
£
473,160
1,180
1,227
353,912
829,479
42,146
871,625|Resources
Movement
expended
in funds
£
£
(484,792)
(11,632)
(4,850)
(3,670)
(4,909)
(3,682)
(9,632)
344,280
(504,183)
325,296
(57,971)
(15,825)
(562,154)
309,471|
|---|---|---|
## **19. CONTINGENT LIABILITIES**
No Contingent liabilities were identified at 31st August 2021.
## **20. RELATED PARTY DISCLOSURES**
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)
Page 22
**STAFFORD METHODIST CIRCUIT**
## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2021**
|**INCOME AND ENDOWMENTS**
**Donations and legacies**
Donations and transfers
Gift aid
**Other trading activities**
Other income
**Investment income**
Deposit account interest
**Charitable activities**
Assessment on churches
Lettings-non-investment property
Office space
**Total incoming resources**
**EXPENDITURE**
**Charitable activities**
Stipends and allowances
Social security
Pensions
Telephone
Insurance, Council tax etc
Repairs and maintenance
Sundries
Travelling expenses
Youth/Children's work
Training
Office expenses
URC mission and ministry
District assessment
Grants to churches
**Support costs**
**Governance costs**
Accountancy and legal fees
Total resources expended
**Net income**|2021
£
366,346
6,246
372,592
6,938
698
224,627
9,240
1,776
235,643
615,871
151,546
10,675
3,593
3,619
15,563
12,449
4,914
2,457
155
288
4,668
8,621
44,007
44,352
306,907
2,400
309,307
306,564|2020
£
18,544
-
18,544
-
2,373
223,761
9,240
1,836
234,837
255,754
134,696
10,295
16,869
3,376
10,111
9,346
3,477
6,289
522
870
4,686
6,787
44,833
-
252,157
690
252,847
2,907|
|---|---|---|
This page does not form part of the statutory financial statements
Page 23