POOLE BAY METHODIST CIRCUIT TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31[st] AUGUST 2021
## POOLE BAY METHODIST CIRCUIT
# ACCRUALS ACCOUNTS 2020-21
For the year ended 31 August 2021
Part of the Southampton District (26/09)
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POOLE BAY METHODIST CIRCUIT TRUSTEES’ ANNUAL REPORT
FOR THE YEAR ENDED 31[st] AUGUST 2021
## **Introduction**
The Poole Bay Methodist Circuit was formed on 1[st] September 2014 from the joining together of the former Bournemouth and Poole & Swanage Circuits. The Circuit originally consisted of 12 Churches located in South Dorset spanning from Swanage to Southbourne, which operated under 9 Church Trustee bodies. With the closure of Wareham Church in June 2019 the Circuit now consists of 11 active Churches.
## **Aims and Organisation**
The mission of the Circuit is to encourage, facilitate, enable and resource the local Churches to be a Christian discipleship movement within their local communities and in the power of the Holy Spirit to spread God’s message of love through action and word.
## **Review of the year**
## **Income trends**
Circuit income was primarily drawn from the Assessments of £316,936 paid by the Circuit Churches (£406,977 previous year). Rental income, which relates to the rental of unoccupied manses of £46,290, was £6,450 lower than the last year amount of £52,740 due to one of the manses being unoccupied for 4 months between tenancies.
The total income for the Circuit for the year ended 31[st] August 2021 of £368,665 compared with last year of £477,374, a decrease of £108,709 due to lower assessments of £90,041, lower charitable income of £11,664 and a decrease in bank interest received due to lower interest rates.
## **Expenditure trends**
Total annual stipends & salary costs of £254,103 during the period were £67,110 lower than the previous year costs of £321,213 due to there being 6 Ministers compared to last year when there were 7 Ministers (8 Ministers in 2019) along with a sized down office employing 4 part-time office/pastoral staff.
During the year, the circuit contributed a total of £121,185 (£139,778 previous year) to the Southampton Methodist District, District Methodist Advanced Fund and Connexion, of which a significant part is used to fund the work of the wider Methodist Church.
Since the start of the coronavirus pandemic in March 2020 a total amount of £131,001 has been donated to Churches within the Circuit to cover loss of income during the pandemic due to the closure of Church buildings. The amount of £72,952 was paid out during the current year to 31[st] August 2021. A further £20,000 was donated last year to Sea Change Management towards the ongoing operation of Wesley’s café located at The Spire, Poole.
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POOLE BAY METHODIST CIRCUIT TRUSTEES’ ANNUAL REPORT
FOR THE YEAR ENDED 31[st] AUGUST 2021
In April 2020, a 5 year interest loan of £80,000 was given to Poole Methodists to be used as a 6 month reserve to facilitate the Church work and mission. The first loan repayment of £16,000 was received after the year end on the 7[th] September 2021.
## **Sale of Fixed Assets**
In September 2020, 22 Gannetts Park, Swanage manse was sold on the open market for £644,500. After the deduction of sale costs and levy the Circuit received the amount of £578,230 from TMCP.
## **Fund balances**
As at 31[st] August 2021 the net current assets of the Circuit were £1,927,781 of which £1,544,761 were unrestricted (exc. designated funds), giving 34 months of cover for total expenditure at current expenditure levels.
## **Activities**
## **September 2020 to 31 March 2021**
After the relaxation of pandemic restrictions during the summer there had been plans for phased reopening of church services to commence from mid-August, this was stalled by a further lockdown during November which resulted in tighter restrictions continuing until March 2021. Worship continued throughout the period with recorded and Zoom church services. Churches also kept in touch with members of their congregation by telephone.
Upton’s pre-school continued to look after vulnerable children and those of essential workers. Repurposing of St Georges for the sole use by the Foodbank who help those in the community in need of their services. Faithworks Wessex continued to work out of Winton Church to support addiction and poverty for those people in Bournemouth, and Poole.
As per previous years, the Circuit has been able to finance two Deacons to work with the local communities in Bournemouth and Poole.
It was agreed there would be no change to the provisional 2020-2021 budget and the amount of assessments to be paid by each church.
The Circuit continued to provide financial support to those Churches who needed to be helped.
## **April to 31 August 2021**
With primary & secondary school pupils returning to school by mid-March and the ease of restrictions the church buildings started to slowly re-open for face to face worship, resume the hire of rooms to other groups and operate the cafes. Activities in the church buildings continued to increase to prepandemic levels during the summer months.
There was a refocus on the Circuit’s intergenerational aims, with an exciting new initiative Gather, Grow, Go getting underway in the churches to reach out to each churches local community and encourage a wider membership worshipping together.
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POOLE BAY METHODIST CIRCUIT TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31[st] AUGUST 2021
## **Plans for 2021/22**
The Trustees recognise the need to regularly review the Circuit’s structure and resources with the aim to provide future stability for the Circuit and its Churches. To encourage existing members not yet back to regular face to face worship and to bring in new members to the churches.
Five main points were identified at the beginning of the year and continue to be the focus:
- Meeting in groups is vital to offer support and social contact.
- Repurposing of buildings which can be difficult to maintain and not always essential for worship.
- Be wise with resources – people, skills, money.
- Working with others is the only way forward – Circuit, ecumenical partners, partners in mission.
- Become a hybrid church using Zoom, recorded services and face to face worship to include everyone.
- Focus on the younger generation.
To assist churches in managing their individual finances it was agreed the 2021-2022 church assessments would remain unchanged from last year. The Trustees are aware of decreasing finances in some of its Churches which will affect the future income of the Circuit and continue to monitor this and support if it is required.
The safeguarding training requirements of individuals will continue to be monitored on a regular basis throughout 2021/22.
The Circuit has not been matched with a new minister to replace the minister who retired in August 2020. This continues to cause challenges within the ministry team and increased local arrangements have been in place as a result. It is the hope a future stationing process will result in the successful stationing of a new minister.
## **Basis of preparation and legal framework**
The Charity’s annual report and accounts for the year ended 31[st] August 2021 have been prepared under the Charities Act 2011 in accordance with the 2019 version of Accounting and Reporting by Charities; Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with FRS102 - the Charities SORP (FRS102).
_Full name of charity: Poole Bay Methodist Circuit_
_Registration Charity Number :1136518_
_Date of registration; 22[nd] June 2010_
_Main contact address: The Circuit Office, c/o Winton Methodist Church, Heron Court Road, Bournemouth, BH9 1DE._
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POOLE BAY METHODIST CIRCUIT TRUSTEES’ ANNUAL REPORT
FOR THE YEAR ENDED 31[st] AUGUST 2021
_The members of the Poole Bay Methodist Circuit meeting are the Charity Trustees, membership being made up of Circuit office holders, Ministers and representatives appointed by the local Churches._
## **Circuit Ministers and Officers**
Active Circuit Ministers _Rev Tony Cavanagh (Superintendent) Rev Roberto Viana Deacon Suzie Viana Deacon Gill Judge (effective 01.09.2020) Rev Nick Wood Rev Karen James_ Circuit Stewards Miss Di Baggs Mr Brian Tucknott Mr Andrew Goodwin Mr Julian Tawn Mr Keshento Burbidge Ms Naomi Shrimpton
## **Circuit Office Staff**
Michelle Dobson, Office Administrator Louise Tidd, Finance Administrator Karen Price, Property Administrator Carol Bendinelli, Pastoral Worker
Due to the changes in the Circuit Office structure in April 2020 there is no longer a Circuit Manager.
Investment Bankers Central Finance Board of the Methodist Church Trustees for the Methodist Church Purposes Auditor PKF Francis Clark
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## POOLE BAY METHODIST CIRCUIT TRUSTEES’ ANNUAL REPORT
FOR THE YEAR ENDED 31[st] AUGUST 2021
## **Circuit Trustees who served during the period 1 Sept 2019 to 31 August 2021 (with start and end dates, where applicable)**
|**end dates, where applicable)**|||
|---|---|---|
|**Ministers**|**Elected**|**Resigned**|
|Rev Tony Cavanagh (Superintendent)|01.09.2015||
|Rev Roberto Viana|01.09.2015||
|Deacon Suzie Viana|01.09.2015||
|Rev Nick Wood|01.09.2015|12.08.2021 (transferred)|
|Rev Karen James|01.09.2019||
|Deacon Gill Judge|01.09.2020||
|**Circuit Stewards**|||
|Miss Di Baggs (Snr Steward)|01.09.2015|31.12.2020|
|Mr Brian Tucknott|01.09.2015||
|Mr Andrew Goodwin|12.06.2019||
|Mr Julian Tawn|03.12.2019||
|Mr Keshento Burbidge|15.09.2020||
|Ms Naomi Shrimpton|15.09.2020||
|**Circuit Safeguarding Officer**|||
|Rev Karen James|10.04.2020||
|**Circuit Meeting Secretary**|||
|Mrs Val Wells|13.03.2018||
|**Local Preachers Secretary**|||
|Mr Terry Fish|15.09.2020||
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## POOLE BAY METHODIST CIRCUIT TRUSTEES’ ANNUAL REPORT
FOR THE YEAR ENDED 31[st] AUGUST 2021
|**Circuit Church Representatives**|**Elected**|**Resigned**|
|---|---|---|
|**Bournemouth**|||
|Mrs Lesley Fernand|17.10.2017||
|Mr Tony Fernand|01.09.2017||
|Mrs Pat Goodhall|17.10.2017||
|Mr Alan McCoy|01.09.2017||
|Mrs Ros Murray|01.09.2017||
|Mr Ian Underwood|17.10.2017||
|Mrs Anita Hazell|23.05.2019||
|Mrs Kate Greaves|03.12.2019||
|**Broadstone**|||
|Mrs Edwina Gould|11.06.2019||
|Mrs Alison Sclater|01.04.2018||
|Mrs Joan Jackson|11.06.2019||
|Mrs Judith Hewins|01.09.2015||
|**Kinson**|||
|Mr Mike Glassey|01.09.2015||
|Mrs Ann Hughes|01.09.2015||
|Mr David Pollington|01.09.2015||
|**Lytchett Matravers**|||
|Mr Clive Allen|08.09.2015||
|Mrs Sheilah Goddard|08.09.2015||
|Mr David Howe|08.09.2015|07.04.2021|
|Mrs Tina Smith|12.06.2018||
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## POOLE BAY METHODIST CIRCUIT TRUSTEES’ ANNUAL REPORT
## FOR THE YEAR ENDED 31[st] AUGUST 2021
|**Poole**|**Elected**|**Resigned**|
|---|---|---|
|Mrs Hilary Windridge|04.04.2019|01.06.2021|
|Mr Peter Smith|01.09.2015||
|Mr John Beasley|12.04.2020||
|Mrs Denise Gibbs|12.06.2018||
|**Swanage**|||
|Mrs Jean Bettles|12.06.2018|22.10.2020|
|Mr Robert Taylor|01.09.2016||
|Mrs Annie Fellows|22.10.2020||
|**Upton**|||
|Mrs Christine Snape|01.09.2017||
|Mrs Katrin Harwood|01.09.2015||
|Mrs Sue McCormick|28.04.2016||
|Mrs Moira Thompson|14.05.2019||
|**Wool**|||
|Mr Christopher Melhuish|01.09.2015||
|Mrs Eileen Osgood|01.09.2015||
|Mr Danny Plews|01.09.2015||
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POOLE BAY METHODIST CIRCUIT TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31[st] AUGUST 2021
## **Aims and Organisation**
Charity objective is to act as a Resource provider within the area around Bournemouth, Poole and Purbeck District for the Methodist Church.
The purposes of the Methodist Church are and shall be deemed to have been since the Date of Union the advancement of:
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.
## **Activities**
The organisation and resourcing of regular public acts of worship open to members of the Church and non members alike.
The teaching of Christianity through sermons, courses and small groups.
The resourcing of pastoral work including visiting the sick and bereaved.
Taking religious assemblies in local schools.
Promotion of Christianity through the staging of events and services.
The large majority of the charity’s Trustees take on their responsibility on a voluntary basis. Trustees rely heavily on members of the Circuit Churches to volunteer for specific roles, such as Circuit Stewardships and Local Preachers Trainer.
## **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 with the Constitutional Practice and Discipline of the Methodist Church by order of the annual conference (CPD).
Day to day management of the Circuit is undertaken by the Circuit Leadership team along with the Local Preachers Meeting and the Circuit Finance Group.
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POOLE BAY METHODIST CIRCUIT TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31[st] AUGUST 2021
## **Trustee Training**
A range of guidance produced by Methodist Connexion to support the effective running of the Circuit, specifically the leaflet “The role of a Trustee in the Methodist Church” available to all new Circuit meeting members as induction to their roles as Trustees.
All members of the Circuit Meeting are Trustees of the Poole Bay Methodist Circuit. The membership of the Circuit Meeting is prescribed in the Standing Orders of the Constitutional Practice and discipline of the Methodist Church. Under the Standing Orders all the Circuit’s Ministers and Circuit’s Stewards are ex officio members of the Circuit Meeting. The Poole Bay Methodist Circuit has further agreed that the Circuit Safeguarding Officer and Local Preacher’s secretary are also members and that if possible, each Church can provide 4 representatives, elected from those Churches.
The managing Trustees must operate within the guidelines of the Methodist Church of Great Britain. The Constitutional Practice and Discipline (CPD) of the Methodist Church lays down how the Circuit should run, and the Methodist Church provides guidance on many of the policies required, such as Safeguarding, employment, recruitment etc.
The remuneration for the Circuit’s Ministers is set by Methodist Conference each year. Lay employee’s remuneration is discussed by the Circuit Finance Group and a recommendation is put forward to the managing Trustees with the annual budget. The Methodist Church supports the Living Wage Foundation.
## **Related Parties**
The Circuit is part of the Southampton District and is also accountable to the Methodist Conference. The following Methodist Churches are linked to the Circuit:- Broadstone, Kinson, Lytchett Matravers, Poole Town, St George’s, Swanage, Trinity, Upton, Victoria Park, Winton and Wool.
The four Churches of St George’s, Trinity, Victoria Park and Winton, operate under one governance structure of the Bournemouth Methodists.
Please refer to the following notes to the accounts: 18. Related Parties Transactions on page 31.
## **Risk Management**
The major risks have been identified and recorded by the Circuit Office Team and have been reviewed by the Circuit’s Trustees.
There is a regular annual review process undertaken and recorded.
Income and Expenditure is being monitored in total and is compared with the approved annual budget to detect trends as part of the Circuit’s risk management process to avoid unforeseen calls on reserves.
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POOLE BAY METHODIST CIRCUIT TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31[st] AUGUST 2021
## **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 Poole Bay Methodist Circuit is committed to ensuring the implementation of Connexional Safeguarding Policy; government legislation, guidance and safe practice in the Churches. The Poole Bay Circuit commits itself to the provision of support, advice and training for lay and ordained people that will ensure people are clear and confident about their roles and responsibilities in safeguarding and promoting the welfare of children and adults who may be vulnerable.
## **Reserves Policy**
The reserves Policy for the Circuit is to hold in its General Fund a minimum sum equivalent to 6 month’s budgeted expenditure i.e. £246,433 (provisional 21/22 budget), in line with the Methodist Church of Great Britain and as recommended by the Southampton District.
The Trustees consider this sufficient to meet any unforeseen time of major expenditure in the short term and for funding planned activities in the event of any inability to raise in the short term and for
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POOLE BAY METHODIST CIRCUIT TRUSTEES’ ANNUAL REPORT
FOR THE YEAR ENDED 31[st] AUGUST 2021
funding planned activities in the event of any inability to raise the full Circuit Assessment from Churches. The net current assets in the general fund balance at 31[st] August 2021 were £793,027 (inc. Eva D. Clark).
During the period other funds also held and not included in unrestricted free reserves are:
## Property Fund
A property fund of £6,178,000 has been established, equivalent to the value of the Circuit manses held within fixed assets. The manses were valued at market value as at 31[st] August 2021 (see page 25).
## Circuit Model Trust
Circuit Model Trust monies are unrestricted and can be used for a variety of purposes. The Trust is held by the Trustees for the Methodist Church Purposes (TMCP) as custodian trustees. Closing Balances at 31[st] August 2021 of £751,734.
## Designated Funds
Designated funds are part of the unrestricted funds which the trustees have earmarked for a particular project or use, without restricting or committing the funds legally. The designation may be cancelled by the trustees if they later decide that the charity should not proceed or continue with the project for which the funds were designated.
The Circuit holds designated funds to be held to cover the costs for Education & Youth, Equipment, Mission & Outreach, Training, Ministers, Lay Employees and Manse repairs.
The closing balance of designated funds as at 31[st] August 2021 was £376,026.
## Rev Robert Ferguson Trust
The Rev Robert Ferguson Trust is a restricted fund. It is a legacy left to the Circuit for the support of retired Methodist Ministers. The closing balance was £2,179.
## Food Bank
The Food Bank monies were donated by the Church members for the specific funding of the Food Bank that operates from our Church in Boscombe. The closing balance was £3,841.
## Benevolent
The Benevolent Fund is a donation from the family of a past member to be used at the discretion of the Superintendent Minister, for those in need. The balance was £666.
## Various Studland Bequests
An endowment fund bequeathed to the Circuit or it’s Churches that have since closed. The use of interest is unrestricted. The Market Value at 31[st] August 2021 was £1,699.
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POOLE BAY METHODIST CIRCUIT TRUSTEES’ ANNUAL REPORT
FOR THE YEAR ENDED 31[st] AUGUST 2021
## Ford Trust
An endowment fund bequeathed to the Circuit or it’s Churches that have since closed. The use of the interest is unrestricted. The Market Value at 31[st] August 2021 was £838.
## Wareham Bequest
A fixed interest fund bequeathed to Wareham Church and transferred to the Circuit on closure of the Church. The use of the fund is unrestricted and both capital and interest can be withdrawn. The Market Value at 31[st] August 2021 was £277.
The Circuit Model Trust and designated funds are part of the unrestricted funds which the Trustees retain for circuit activities, without restricting and committing the funds legally.
## **Trustee Responsibilities**
The law applicable to charities in England and Wales required the Trustees of Poole Bay Methodist to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and the incoming resources and application of resources, including the income and expenditure, of the charity for that period.
In preparing these financial statements, the Trustees are required to:
- Select suitable accounting policies and then apply them consistently;
- Observe the methods and principles in the Charities SORP 2019 (FRS102);
- Make judgements and estimates that are reasonable and prudent;
- State whether applicable UK 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.
The Trustees are responsible for keeping adequate 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 Standing Orders of the Methodist Church and the Charities Act 2011. 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.
In so far as the Trustees are aware:
- There is no relevant audit information of which the charity's auditor is unaware; _and_
- The Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
The charity seeks to comply with the requirements of UK legislation, the Charity Commission and the Constitutional Practice and Discipline of the Methodist Church in all areas of its dealings.
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POOLE BAY METHODIST CIRCUIT TRUSTEES’ ANNUAL REPORT
FOR THE YEAR ENDED 31[st] AUGUST 2021
We understand that this has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting period beginning on or after 1[st] January 2019.
The Trustees approved this report on 8th March 2022. The report was signed on their behalf by
Roberto Viana Acting Superintendent and Chair of the Circuit Meeting
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## POOLE BAY METHODIST CIRCUIT TRUSTEES’ ANNUAL REPORT
## FOR THE YEAR ENDED 31[st] AUGUST 2021
## **Statement of Financial Activities (SOFA) for the year ended 31 August 2021**
|**Notes to the**
**accounts**
**Income and Endowments from:**
Donations and legacies
4
Income from monetary investments
5
Assessments on Churches
6
Other Charitable Income
7
**Total income**
**Expenditure on:**
Donations
8
Salaries, NIC & Pension costs
9
Property maintenance & other costs
Expenditure on other Methodist Property
Loss on disposal of fixed asset
10
Office expenses
Telephone and Travel
Insurance, Utilities etc.
District Assessment & Levy
Methodist Church Fund
Contributions to District Advance Fund
Professional fees
Other outgoings
**Total charitable expenditure**
**Net income/(expenditure)**
**Transfers between funds**
16
**Other recognised losses/gains:**
12
Gains on revaluation of fixed assets
11
**Net movement in funds**
Total funds brought forward
**Total funds carried forward**|**General Fund**
**(Unrestricted)**
**Circuit Model**
**Trust**
**(Unrestricted)**
**Designated**
**Funds**
**(Unrestricted)**
**Restricted**
**Funds**
**Endowment**
**Funds**
**Total**
**2020-21**
**Total**
**2019-20**
**£**
**£**
**£**
**£**
**£**
**£**
**£**
440
440
-
1,260
2,722
4
10
3,996
11,440
316,936
316,936
406,977
46,694
599
47,293
58,957
**365,330**
**2,722**
**-**
**603**
**10**
**368,665**
**477,374**
73,302
73,302
78,049
144,058
110,045
254,103
321,213
4,526
23,266
27,792
46,361
66,270
66,270
18,421
-
184,513
4,375
285
4,660
4,704
9,375
2,432
11,807
19,385
29,632
2,923
32,555
32,546
9,096
7,140
16,236
10,612
47,628
37,428
85,056
97,260
-
19,893
19,893
31,906
7,920
7,920
8,295
5,318
874
1,451
579
6
8,228
13,329
**401,500**
**20,767**
**184,970**
**579**
**6**
**607,822**
**866,594**|
|---|---|
||**-36,170**
**-18,045**
**-184,970**
**24**
**4**
**-239,157**
**-389,220**
**-664,881**
**538,230**
**126,551**
**-**
-100
-
**-5**
-5
**3**
536,000
**536,000**
**2,957,316**
**-165,051**
**520,185**
**-58,419**
**24**
**-1**
**296,738**
**2,568,099**|
||7,136,078
231,549
434,445
6,662
2,815
7,811,549
5,243,450
**6,971,027**
**751,734**
**376,026**
**6,686**
**2,814**
**8,108,287**
**7,811,549**|
* 2020 SOFA is shown in the notes to the accounts on page 21.
15
POOLE BAY METHODIST CIRCUIT ACCOUNTS FOR THE YEAR ENDED 31[st] AUGUST 2021
|**Notes to the**
**accounts**
**Fixed Assets**|**Notes to the**
**accounts**
**Fixed Assets**|**General Fund**
**(Unrestricted)**
**Circuit Model**
**Trust**
**(Unrestricted)**
**Designated**
**Funds**
**(Unrestricted)**
**Restricted**
**Funds**
**Endowment**
**Funds**
**Total 2021**
**£**
**£**
**£**
**£**
**£**
**£**
6,178,000
6,178,000
0
2,506
2,506
**6,178,000**
0
0
0
**2,506**
**6,180,506**
103,616
**-**
103,616
71,796
**-**
5,711
77,507
5,177
751,734
101,188
1,260
308
859,667
627,151
275,326
902,477
**807,740**
**751,734**
**376,514**
**6,971**
**308**
**1,943,267**
14,713
488
285
15,486
**14,713**
0
488
**285**
0
**15,486**
**793,027**
**751,734**
**376,026**
**6,686**
**308**
**1,927,781**
**6,971,027**
**751,734**
**376,026**
**6,686**
**2,814 8,108,287**
**6,971,027**
**751,734**
**376,026**
**6,686**
**2,814**
**8,108,287**
6,971,027
751,734
376,026
8,098,787
6,686
6,686
2,814
2,814
**6,971,027**
**751,734**
**376,026**
**6,686**
**2,814**
**8,108,287**
**Balance Sheet as at 31 August 2021**|**General Fund**
**(Unrestricted)**
**Circuit Model**
**Trust**
**(Unrestricted)**
**Designated**
**Funds**
**(Unrestricted)**
**Restricted**
**Funds**
**Endowment**
**Funds**
**Total 2021**
**£**
**£**
**£**
**£**
**£**
**£**
6,178,000
6,178,000
0
2,506
2,506
**6,178,000**
0
0
0
**2,506**
**6,180,506**
103,616
**-**
103,616
71,796
**-**
5,711
77,507
5,177
751,734
101,188
1,260
308
859,667
627,151
275,326
902,477
**807,740**
**751,734**
**376,514**
**6,971**
**308**
**1,943,267**
14,713
488
285
15,486
**14,713**
0
488
**285**
0
**15,486**
**793,027**
**751,734**
**376,026**
**6,686**
**308**
**1,927,781**
**6,971,027**
**751,734**
**376,026**
**6,686**
**2,814 8,108,287**
**6,971,027**
**751,734**
**376,026**
**6,686**
**2,814**
**8,108,287**
6,971,027
751,734
376,026
8,098,787
6,686
6,686
2,814
2,814
**6,971,027**
**751,734**
**376,026**
**6,686**
**2,814**
**8,108,287**
**Balance Sheet as at 31 August 2021**|**General Fund**
**(Unrestricted)**
**Circuit Model**
**Trust**
**(Unrestricted)**
**Designated**
**Funds**
**(Unrestricted)**
**Restricted**
**Funds**
**Endowment**
**Funds**
**Total 2021**
**£**
**£**
**£**
**£**
**£**
**£**
6,178,000
6,178,000
0
2,506
2,506
**6,178,000**
0
0
0
**2,506**
**6,180,506**
103,616
**-**
103,616
71,796
**-**
5,711
77,507
5,177
751,734
101,188
1,260
308
859,667
627,151
275,326
902,477
**807,740**
**751,734**
**376,514**
**6,971**
**308**
**1,943,267**
14,713
488
285
15,486
**14,713**
0
488
**285**
0
**15,486**
**793,027**
**751,734**
**376,026**
**6,686**
**308**
**1,927,781**
**6,971,027**
**751,734**
**376,026**
**6,686**
**2,814 8,108,287**
**6,971,027**
**751,734**
**376,026**
**6,686**
**2,814**
**8,108,287**
6,971,027
751,734
376,026
8,098,787
6,686
6,686
2,814
2,814
**6,971,027**
**751,734**
**376,026**
**6,686**
**2,814**
**8,108,287**
**Balance Sheet as at 31 August 2021**|**General Fund**
**(Unrestricted)**
**Circuit Model**
**Trust**
**(Unrestricted)**
**Designated**
**Funds**
**(Unrestricted)**
**Restricted**
**Funds**
**Endowment**
**Funds**
**Total 2021**
**£**
**£**
**£**
**£**
**£**
**£**
6,178,000
6,178,000
0
2,506
2,506
**6,178,000**
0
0
0
**2,506**
**6,180,506**
103,616
**-**
103,616
71,796
**-**
5,711
77,507
5,177
751,734
101,188
1,260
308
859,667
627,151
275,326
902,477
**807,740**
**751,734**
**376,514**
**6,971**
**308**
**1,943,267**
14,713
488
285
15,486
**14,713**
0
488
**285**
0
**15,486**
**793,027**
**751,734**
**376,026**
**6,686**
**308**
**1,927,781**
**6,971,027**
**751,734**
**376,026**
**6,686**
**2,814 8,108,287**
**6,971,027**
**751,734**
**376,026**
**6,686**
**2,814**
**8,108,287**
6,971,027
751,734
376,026
8,098,787
6,686
6,686
2,814
2,814
**6,971,027**
**751,734**
**376,026**
**6,686**
**2,814**
**8,108,287**
**Balance Sheet as at 31 August 2021**|**General Fund**
**(Unrestricted)**
**Circuit Model**
**Trust**
**(Unrestricted)**
**Designated**
**Funds**
**(Unrestricted)**
**Restricted**
**Funds**
**Endowment**
**Funds**
**Total 2021**
**£**
**£**
**£**
**£**
**£**
**£**
6,178,000
6,178,000
0
2,506
2,506
**6,178,000**
0
0
0
**2,506**
**6,180,506**
103,616
**-**
103,616
71,796
**-**
5,711
77,507
5,177
751,734
101,188
1,260
308
859,667
627,151
275,326
902,477
**807,740**
**751,734**
**376,514**
**6,971**
**308**
**1,943,267**
14,713
488
285
15,486
**14,713**
0
488
**285**
0
**15,486**
**793,027**
**751,734**
**376,026**
**6,686**
**308**
**1,927,781**
**6,971,027**
**751,734**
**376,026**
**6,686**
**2,814 8,108,287**
**6,971,027**
**751,734**
**376,026**
**6,686**
**2,814**
**8,108,287**
6,971,027
751,734
376,026
8,098,787
6,686
6,686
2,814
2,814
**6,971,027**
**751,734**
**376,026**
**6,686**
**2,814**
**8,108,287**
**Balance Sheet as at 31 August 2021**|**General Fund**
**(Unrestricted)**
**Circuit Model**
**Trust**
**(Unrestricted)**
**Designated**
**Funds**
**(Unrestricted)**
**Restricted**
**Funds**
**Endowment**
**Funds**
**Total 2021**
**£**
**£**
**£**
**£**
**£**
**£**
6,178,000
6,178,000
0
2,506
2,506
**6,178,000**
0
0
0
**2,506**
**6,180,506**
103,616
**-**
103,616
71,796
**-**
5,711
77,507
5,177
751,734
101,188
1,260
308
859,667
627,151
275,326
902,477
**807,740**
**751,734**
**376,514**
**6,971**
**308**
**1,943,267**
14,713
488
285
15,486
**14,713**
0
488
**285**
0
**15,486**
**793,027**
**751,734**
**376,026**
**6,686**
**308**
**1,927,781**
**6,971,027**
**751,734**
**376,026**
**6,686**
**2,814 8,108,287**
**6,971,027**
**751,734**
**376,026**
**6,686**
**2,814**
**8,108,287**
6,971,027
751,734
376,026
8,098,787
6,686
6,686
2,814
2,814
**6,971,027**
**751,734**
**376,026**
**6,686**
**2,814**
**8,108,287**
**Balance Sheet as at 31 August 2021**|**Total 2020**
**£**
6,286,500
2,511
**6,289,011**
175,108
64,579
443,646
913,246
**1,596,579**
74,041
**74,041**
**1,522,538**
**7,811,549**
**7,811,549**
7,802,072
6,662
2,815
**7,811,549**|
|---|---|---|---|---|---|---|---|---|
|Land & Buildings|11|6,178,000|||||6,178,000||
|Investments|12|0||||2,506|2,506||
|**_Totalfixed assets_**||**6,178,000**|0|0|0|**2,506**|**6,180,506**||
|Debtors and Prepayments||103,616||**-**|||103,616||
|Cash at Bank and in hand||71,796||**-**|5,711||77,507||
|Trustees for Methodist Church
Purposes deposits||5,177|751,734|101,188|1,260|308|859,667||
|Central Finance Board Deposits||627,151||275,326|||902,477||
|**_Total current assets_**||**807,740**|**751,734**|**376,514**|**6,971**|**308**|**1,943,267**||
|**Current Liabilities**|||||||||
|Creditors and Accruals (due in
under 1yr)|14|14,713||488|285||15,486||
|**_Total current liabilities_**||**14,713**|0|488|**285**|0|**15,486**||
|**Net current assets(liabilities)**
**_Total assets less current_**
**_liabilities_**
**_Net assets_**
8
**Funds of the Circuit**
16
Unrestricted funds
Restricted funds
Endowment funds
**_Total Funds_**|||||||||
|||**6,971,027**|**751,734**|**376,026**|**6,686**|**2,814**|**8,108,287**||
||||||||||
|Unrestricted funds||6,971,027|751,734|376,026|6,686||8,098,787|7,802,072|
|Restricted funds|||||6,686||6,686|6,662|
|Endowment funds||||||2,814|2,814|2,815|
|**_Total Funds_**||**6,971,027**|**751,734**|**376,026**|**6,686**|**2,814**|**8,108,287**|**7,811,549**|
16
## POOLE BAY METHODIST CIRCUIT ACCOUNTS FOR THE YEAR ENDED 31[st] AUGUST 2021
**----- Start of picture text -----**
Poole Bay Circuit Circuit No 26 09
Statement of cashflow 2021 2020
Note £ £
Cash flow from operating activities 17 -230,316 -10,369
Interest paid 3,996 11,440
-
Net cash flow from operating activities 226,320 1,071
Cash flow from investing activities 644,500 210,000
Cash flow from financing activities 0 -80,000
Net increase in cash and cash equivalents 418,180 131,071
Cash and cash equivalents at 01/09 1,421,471 1,290,400
Cash and cash equivalents at 31/08 1,839,651 1,421,471
Cash at bank and in hand 979,984 977,825
Short term deposits 859,667 443,646
Cash and cash equivalents at 31/08 1,839,651 1,421,471
**----- End of picture text -----**
17
POOLE BAY METHODIST CIRCUIT ACCOUNTS FOR THE YEAR ENDED 31[st] AUGUST 2021
## **Notes to the Accounts**
## **Accounting framework and accounting policies**
## **1. Basis of accounting**
Poole Bay Methodist Circuit is a registered charity, registration number 1136518, registered in the United Kingdom. The address of the charity is given in the trustees’ report on page 4 of these financial statements. The nature of the charity’s operations and principal activities are described in the Trustees Annual Report.
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) issued on 16 July 2014, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102), the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
## **2. Pubic benefit entity**
The Poole Bay Circuit meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognized at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes below.
## **3. Accounting policies**
## **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, on the accruals basis to show a true and fair view of the Circuit’s financial position and activities.
The financial statements have been prepared on a going concern basis. As explained in the Trustee Report the Trustees have considered the uncertainty relating to the coronavirus pandemic which started in March 2020 and during the current financial year continued to impact on the charity’s operations and finances in the short to medium term. In the opinion of the Trustees, with proactively managing cash-flow the charity has sufficient working capital to continue to meet its financial obligations and pay its liabilities as they fall due for the foreseeable future and therefore the financial statements have been prepared on a going concern basis. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves held for the charity to be able to continue as a going concern.
## **Content**
The financial information presented is relevant, reliable, comparable and complete. The accounts are expressed in £Sterling, rounded to the nearest pound.
## **FRS102 SORP2019**
These accounts are compliant with FRS102 and with FRS102 SORP 2019.
## **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
18
POOLE BAY METHODIST CIRCUIT ACCOUNTS FOR THE YEAR ENDED 31[st] AUGUST 2021
sufficient reliability. Assessment income received from Churches is also included on this basis. No attempt is made to measure the value of services donated by volunteers.
## **Expenditure**
This is recognized when a liability is incurred, or a constructive obligation arises, that results in the payment being unavoidable. Liabilities are recognized as soon as an outflow of economic benefit is considered more likely than not under the legal or constructive obligation committing the Circuit to pay out resources.
## **Donations**
Donations made by the Circuit are recognised in full at the time of agreement or when the Circuit accepts that there is a legal or operational obligation to make the payment. When the donation 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.
## **VAT**
Since the Circuit is not VAT registered, all input VAT is charged with the expenses to which it refers.
## **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 the current market values. All properties are owned by the Methodist Church of Great Britain. The Circuit Trustees are the Managing Trustees. In adherence to Methodist regulations, each property is surveyed by a qualified surveyor every five years and property inspections are carried out by the Circuit. The results of these surveys form the basis of the planning and budgeting for remedial works along with regulatory requirements such as boiler inspections and electrical testing.
During 2019/20 there was an accounting policy change to the method used to value the manse properties from insurance valuation to the use of market values. The market values are reviewed annually to reflect the current market.
## **Investment Properties**
Investment properties – no property is currently deemed to not be held for the long-term purposes of the charity.
## **Investments**
Investments are valued in the balance sheet at market value at the year end. Investment income is included in the accounts when receivable and any gains or losses on revaluation at the year end are shown in the SOFA.
## **Debtors and Prepayments**
Debtors are stated at the amounts owed to the Circuit or prepaid. The liquid funds of bank balances and deposit account balances are shown at realisable values.
## **Creditors**
Creditors are initially recognised at settlement amount after trade discounts, where normal credit terms apply or amount advanced to the Circuit. Subsequently, creditors that are current liabilities are measured at the cash or other consideration expected to be paid.
19
POOLE BAY METHODIST CIRCUIT ACCOUNTS FOR THE YEAR ENDED 31[st] AUGUST 2021
## **Loans**
Concessionary loans include those receivable from/ made to third parties which are interest free or below market rates and are made to advance charitable purposes. All loans are measured at cost, less impairment.
## **Pensions**
Most ordained presbyters and deacons are members of the Methodist Ministers’ Pension Scheme (MMPS). This is a defined benefit scheme. The Supreme Court held in 2014 that Methodist ministers are not employees of the Church. For simplicity, however, when dealing with National Insurance contributions and pension contributions, the terms ‘employer’ and ‘employee’ are used as they would be in an employing body. Lay employees, however, are contractually employees and have the option of joining The Pensions Trust. This is a defined contribution scheme. The Connexion accounts for MMPS and shows the figures in the annual Methodist Church of Great Britain accounts.
20
## POOLE BAY METHODIST CIRCUIT ACCOUNTS FOR THE YEAR ENDED 31[st] AUGUST 2021
**Statement of Financial Activities (SOFA) for the year ended 31 August 2020**
|**Notes to the**
**accounts**
**Income and Endowments from:**
Income from monetary investments
5
Assessments on Churches
6
Other Charitable Income
7
**Total income**
**Expenditure on:**
Donations
8
Salaries, NIC & Pension costs
9
Property maintenance & other costs
Expenditure on other Methodist Property
Loss on disposal of fixed asset
10
Office expenses
Telephone and Travel
Insurance, Utilities etc.
District Assessment & Levy
Methodist Church Fund
Contributions to District Advance Fund
Professional fees
Other outgoings
**Total charitable expenditure**
**Net income/(expenditure)**
**Transfers between funds**|**General Fund**
**(Unrestricted)**
**Circuit Model**
**Trust**
**(Unrestricted)**
**Designated**
**Funds**
**(Unrestricted)**
**Restricted**
**Funds**
**Endowment**
**Funds**
**Total**
**2019-20**
**£**
**£**
**£**
**£**
**£**
**£**
6,209
5,196
11
24
11,440
406,977
406,977
57,551
2
1,127
277
58,957
**470,737**
**5,196**
**2**
**1,138**
**301**
**477,374**|
|---|---|
||78,049
78,049
174,136
147,077
321,213
13,829
32,532
46,361
18,421
18,421
184,513
184,513
4,704
4,704
14,519
4,866
19,385
29,380
3,166
32,546
5,484
5,128
10,612
57,964
39,296
97,260
-
31,906
31,906
8,295
8,295
6,394
1,193
4,996
740
6
13,329
**411,175**
**217,612**
**237,061**
**740**
**6**
**866,594**|
||**59,562**
**-212,416**
**-237,059**
**398**
**295**
**-389,220**
**-316,595**
**152,574**
**164,021**
**-**
-|
|**Other recognised gains:**
12|**3**
**3**|
|Gains on revaluation of fixed assets
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**|2,957,316
**2,957,316**
**2,700,283**
**-59,842**
**-73,038**
**398**
**298**
**2,568,099**|
||-
-
-
-
-
-|
||4,435,795
291,391
507,483
6,264
2,517
5,243,450
**7,136,078**
**231,549**
**434,445**
**6,662**
**2,815**
**7,811,549**|
21
## POOLE BAY METHODIST CIRCUIT ACCOUNTS FOR THE YEAR ENDED 31[st] AUGUST 2021
|**4. Donations and legacies**
Donations
**Total**
**5. Income from monetary investments**
Central Finance Board CFB
TMCP
**Total**
**6. Assessments on Churches**
Bournemouth Methodists
Broadstone
Kinson
Lytchett Matravers
Poole
Swanage
Upton
Wool|**Unrestricted**
**Circuit Model**
**Trust Fund Restricted**
**Endowment**
**2021**
**Total**
**2020**
**Total**
£
£
£
£
£
£
440
440
0|
|---|---|
||**440**
**-**
**-**
**-**
**440**
**0**
**Unrestricted**
**Circuit Model**
**Trust Fund Restricted**
**Endowment**
**2021**
**Total**
**2020**
**Total**
£
£
£
£
£
£
1,243
1,243
6,165
17
2,722
4
10
2,753
5,275|
||**1,260**
**2,722**
**4**
**10**
**3,996**
**11,440**
**Unrestricted**
**Circuit Model**
**Trust Fund Restricted**
**Endowment**
**2021**
**Total**
**2020**
**Total**
£
£
£
£
£
£
102,017
102,017
131,000
56,360
56,360
72,372
26,478
26,478
34,000
7,257
7,257
9,319
67,232
67,232
86,332
31,307
31,307
40,201
19,469
19,469
25,000
6,816
6,816
8,753|
|**Total**
**316,936**
**-**
**-**
**-**
**316,936**
**406,977**
Note: Bournemouth Methodists include: St George's, Trinity, Victoria Park and Winton churches
**7. Other Charitable Income**
**Unrestricted**
**Circuit Model**
**Trust Fund Restricted**
**Endowment**
**2021**
**Total**
**2020**
**Total**
£
£
£
£
£
£
Lettings (Fernside Road)
17,400
17,400
17,400
Lettings (Headswell Avenue)
12,150
12,150
18,600
Lettings (Wimborne Road)
16,740
16,740
16,740
Transfer of assets from Wareham Church
99
99
1,494
Other
305
599
904
4,723||
|**Total**
**46,694**
**-**
**599**
**-**
**47,293**
**58,957**||
22
## POOLE BAY METHODIST CIRCUIT ACCOUNTS FOR THE YEAR ENDED 31[st] AUGUST 2021
|**8 Donations and legacies**
Donations to Circuit Churches:-
Poole Methodists
Sea Change Management
Bournemouth Methodists
Broadstone
Swanage
Kinson
Upton
Donation to External Organisation (Shine)
**Total**|**Unrestricted Circuit Model**
**Trust Fund**
**Restricted**
**Endowment**
**2021**
**Total**
**2020**
**Total**
£
£
£
£
£
£
43,114
43,114
22,466
0
0
20,000
15,206
15,206
17,946
9,636
9,636
9,967
2,933
2,933
4,342
1,039
1,039
2,168
1,024
1,024
1,160
350
350
0|
|---|---|
||**73,302**
**0**
**0**
**0**
**73,302**
**78,049**|
Donations of £70,902 were paid to churches in March and July 2021 covering the loss of rental income & café takings (Broadstone only) due to the pandemic. £2,050 was accrued as at 31st August 2021.
23
POOLE BAY METHODIST CIRCUIT ACCOUNTS FOR THE YEAR ENDED 31[st] AUGUST 2021
## **9. Salaries & Associated Costs**
|**Staff Costs paid during the year were:**
Gross wages, salaries and benefits in kind
Employer’s National Insurance costs & apprenticeships levy
Pension costs
Administration costs
**Total staff costs**
Stipends
**Total (Inc. stipends)**
£
£
£
£
£
£
£
Stipend salaries relate to the employees of the central Methodist and costs are recharged to
Poole Bay Circuit. No employees earn in excess of £60,000.|**2021**
**Total**
£
37,839
1,015
1,342
1,665
**41,861**
212,242
**254,103**|**2021**
**Total**
£
37,839
1,015
1,342
1,665
**41,861**
212,242
**254,103**|**2020**
**Total**
£|**2020**
**Total**
£|
|---|---|---|---|---|
||||71,609||
||||4,421||
||||2,421||
||||2,237||
||||**80,688**||
||||240,525||
||||**321,213**||
||||||
|**Average number of lay employees employeed during the year**
**were:**
**Average number of Ministers stationed during the year were:**|2||3||
||6||7||
|**Payment to Trustees**|**This year**||**Last year**||
|£
Payments made to trustees for additional services provided to the Circuit by agreement with
the Circuit Meeting. Trustees are also authorised to purchase items for the Church's use and
were reimbursed the cost of those items.|9,721||17,889||
||||||
|Number of trustees who were paid expenses|8||11||
|**Total amount paid**
£
£
£
Nature of the expenses : Mileage, Telephone & Business Expenses incurred by Ministers and
Stewards and the cost of small tokens to Circuit Stewards and Ministers.
Independent examiner’s or auditors' fees for reporting on the accounts
Other professional fees (eg: advice, accountancy services)
**Fees for examination or audit of the accounts**|9,721
6,870
1,050||||
||||17,889||
||||||
||||6,744||
||||1,551||
||||||
|**10. Loss on disposal of fixed assets**
**Unrestricted**
**Circuit Model**
**Trust Fund Restricted**
**Endowment**
**2021**
**Total**
£
£
£
£
£
Disposal of Gannetts Park manse *
0
0
Loss on disposal of Springbourne Centre,
Walpole Road|||**2020**
**Total**
£
184,513||
|**Total**
0
0
0
0
**0**|||184,513||
* There was no profit/loss on disposal on the sale of Swanage manse to report in the accounts, the market valuation was held at sale price of £644,500 on last year's balance sheet.
24
POOLE BAY METHODIST CIRCUIT ACCOUNTS FOR THE YEAR ENDED 31[st] AUGUST 2021
## **11. Tangible Fixed Assets**
Cost or valuation
|**11. Tangible Fixed Assets**
Cost or valuation||||
|---|---|---|---|
||**Manses**
**£**|**Other non**
**investment land**
**and buildings**
**£**|**Total**
**£**|
|**Balance brought forward**|6,286,500||6,286,500|
|Additions||||
|Revaluations(+/-)|536,000||536,000|
|Disposals(-)|-644,500||-644,500|
|Transfers *(+/-)||||
|Balance carried forward|6,178,000|-|6,178,000|
|**Net book value**||||
|Brought forward|6,286,500|-|6,286,500|
|Carried forward|6,178,000|-|6,178,000|
The Manse properties have been revalued at Market Value on 31st August 2021 based on Zoopla estimates as at 23 November 2021.
If the Manse properties had continue to be revalued on 31st August 2021 based on the insurance valuations of £3,116,087 provided by Methodist Insurance in November 2020 the total valuation would have been £3,061,913 lower than by using market values.
25
POOLE BAY METHODIST CIRCUIT ACCOUNTS FOR THE YEAR ENDED 31[st] AUGUST 2021
## **12. Investments**
The funds that support the Circuit Model Trust Fund and the Manses Fund are held by TMCP in Trustees Interest Funds on which interest is credited to the accounts each month. These are regarded as medium and long term investments.
TMCP is the legal owner and Custodian Trustee of all Methodist Model Trust property, including Legacies, Endowments and Accumulated Funds. Trust property is held for and on behalf of local Managing Trustees who are responsible for the day to day management of trust property. TMCP ensure that, through providing guidance and acting under their direction, the Managing Trustees comply with Charity Law and Methodist Law and policy as determined by the Methodist Conference.
## **Analysis of investment movements**
|**Analysis of investment movements**|**Analysis of investment movements**|**Analysis of investment movements**|
|---|---|---|
|**This year**
**Previous year**
**£**
**£**|||
|Other investments|2,506|2,511|
|**£**
**£**
**Change in investment values**|||
|Carrying (market)value at beginningofyear|2,511|2,231|
|**Add:**additions to investments at cost|0|277|
|**Less:**disposals at carryingvalue|||
|**Net:** (loss)/gain on revaluation|-5|3|
|**Carrying (market) value at end ofyear**|2,506|2,511|
26
POOLE BAY METHODIST CIRCUIT ACCOUNTS FOR THE YEAR ENDED 31[st] AUGUST 2021
## **13. Analysis of current assets**
|**Debtors and prepayments**
Other debtors
Other church debtors
Other church debtors (see note 18)
**Total debtors and prepayments**
**y**
Accrued income - BMC YE19-20 assessment (paid in full October 2020)
Accrued income - other YE19-20 church assessments
Prepayments|**This year**
**£**
16,418
0
0
217
1,976
85,005
**103,616**|**Last year**
**£**|
|---|---|---|
||16,418|18,012|
||0|54,575|
||0|15,071|
||217|0|
||1,976|0|
||85,005|87,450|
||**103,616**|**175,108**|
## **Disclosure of debtors recoverable in more than 1 year (included in other debtors above)**
|Other debtors - 5 year interest fee loan to Poole Methodists
The 1st loan repayment of £16,000 was received after the year end on 7th
September 2021
**Analysis of cash at bank**
Bank balance held in CAF Current Account
Bank balance held in CFB Ops and Reserves
Bank balance held in TMCP Funds - Poole Bay
Bank balance held in TMCP Fund - Poole Bay Reserves
Bank balance held in TMCP Fund - Robert Ferguson Trust
Bank balance held in TMCP Fund - Studland
Bank balance held in TMCP Fund - Fords' Trusts
Bank balance held in TMCP Fund - Legacy Wareham
Bank balance held in TMCP Fund - E D Clarke
Cash held - Minister Imprest
Cash held - Foodbank
Other Accounts held by Internal Organisations
Sundry Creditors
Church Creditors - Covid donations
Other Church Creditors
Other Creditors (External Organisations)
**Total Creditor and Accruals**
**Total Cash and Bank**
**14. Analysis of current liabilities and long term creditors**|48,000|
|---|---|
||9,610|
||2,050|
||3,541|
||285|
||**15,486**|
27
POOLE BAY METHODIST CIRCUIT ACCOUNTS FOR THE YEAR ENDED 31[st] AUGUST 2021
## **15. Capital commitments and contingent liabilities**
At the 31 st August 2021 the Circuit has no capital commitments.
No Contingent liabilities were identified at 31st August 2021.
28
## POOLE BAY METHODIST CIRCUIT TRUSTEES’ ANNUAL REPORT
## FOR THE YEAR ENDED 31[st] AUGUST 2021
## **16. Detailed analysis of individual fund movements**
|**Unrestricted Funds**||||||||
|---|---|---|---|---|---|---|---|
|**Fund Name**|**Opening**
**Balance**|**Income**|**Expenditure**|**Transfers**|**Revaluation**
**gains/losses**|**Closing**
**Balance**|**Purpose of the fund**|
|General|844,408|365,313|-401,490|-20,381||787,850|General Mission|
|Eva Doris Clark|5,170|17|-10|||5,177|From Corfe Mullen - general admission|
|Property|6,286,500|||-644,500|536,000|6,178,000|Provision of Manses for Minister use|
|Poole Bay Model Trust Fund|231,549|2,722|-20,767|538,230||751,734|Mission|
|Mission funds (designated)|8,415|||||8,415|Mission|
|Education & Youth Fund (designated)|3,665||-14|||3,651|Education & Youth|
|Equipment (designated)|4,137||-385|500||4,252|Provision of Equipment|
|Mission & Outreach (designated)|41,752|||||41,752|Various mission & outreach projects|
|Ministers removal (designated)|-6,831|||1,000||-5,831|To assist ministers when moving|
|Deacons Fund (designated)|303,506||-97,856|||205,650|To cover future Deacons costs|
|Lay Employee Fund (designated)|18,785||-62,545|76,551||32,791|To cover Lay employee costs|
|Manse Repairs (designated)|61,588||-23,266|48,500||86,822|To cover manse repair costs|
|Training (designated)|-572||-904|||-1,476|Training|
|Totals|**7,802,072**|**368,052**|**-607,237**|**-100**|**536,000**|**8,098,787**||
|**Restricted Funds**||||||||
|**Fund Name**|**Opening**
**Balance**|**Income**|**Expenditure**|**Transfers**|**Revaluation**
**gains/losses**|**Closing**
**Balance**|**Purpose of the fund**|
|Rev. Robert Ferguson Trust|2,178|4|-3|||2,179|To support retired Ministers|
|Int. Org. Food Bank|3,818|599|-576|||3,841|Internal Org. Provide food to those in
poverty|
|Benevolent|666|||||666|For use at Superintendent's discretion for
those in need|
|Totals|**6,662**|**603**|**-579**|**0**|**0**|**6,686**||
|**Endowment Funds**||~~29~~
**Current**
**Value**
**Annual Income**
**What was income used for**
1,699
3 added to fund value
838
1 added to fund value
277
1 added to fund value
**2,814**
**5**
29||||||
|**Endowment name**|**How the Capital**
**is invested**|**Current**
**Value**|**Annual Income**|**What was income used for**||||
|Various Studland Bequests|Trustee for|1,699|3|added to fund value
added to fund value
added to fund value||||
|Fords Trust|Methodist
|838|~~29~~
1|||||
|Wareham Bequests|Purposes|277|
1|||||
||**Totals**|**2,814**|**5**|||||
## POOLE BAY METHODIST CIRCUIT TRUSTEES’ ANNUAL REPORT
FOR THE YEAR ENDED 31[st] AUGUST 2021
## **17. Reconcilation of net income & expenditure to net cash flow from operating activities**
|Net income for 2020/21
Interest receivable
Revaluation of tangible fixed assets
Losses /(Gains) on investments
Loss on disposal of tangible fixed assets
Decrease in debtors
(Decrease)/Increase in creditors
Net cash outflow from operating activities|2021||2020|
|---|---|---|---|
||£||£|
||296,738
-3,996
-536,000
5
0
71,492
-58,555||2,568,099
-11,440
-2,957,316
-280
184,513
148,530
57,525|
||-230,316||-10,369|
These accounts are compliant with FRS102 and with FRS102 SORP 2019.
30
POOLE BAY METHODIST CIRCUIT ACCOUNTS FOR THE YEAR ENDED 31[st] AUGUST 2021
## **18. Related party transactions**
**This year**
|**Thisyear**||||||||
|---|---|---|---|---|---|---|---|
|**Name of related**
**party**|**Relationship**|**Description of**
**transaction**|**Repayment due**
**date**|**Amount**
**B/Fwd**|**Repayment**
**in Year**|**Loans to**
**related party**
**during the year**|**Amounts owed**
**by related party**
**on 31-Aug-2021**|
|||||**£**|**£**|**£**|**£**|
|Rev R Viana|Minister|Non-secured loan|March 2023|3,550|1,245||2,305|
|Deacon S Viana|Minister|Non-secured loan|November 2023|3,900|1,200||2,700|
|Poole
Methodists|Circuit Church|Non-secured loan|August 2025|80,000|*||80,000|
|**Total**||||**87,450**|**2,445**|**0**|**85,005**|
|||||||||
* The 1st loan repayment of £16,000 was credited to CAF bank account on 7th September 2021
**Last year**
|**Name of related**
**party**|**Relationship**|**Description of**
**transaction**|**Repayment due**
**date**|**Amount**
**B/Fwd**|**Repayment**
**in Year**|**Loans to**
**related party**
**during the year**|**Amounts owed**
**by related party**
**on 31-Aug-2020**|
|---|---|---|---|---|---|---|---|
|||||**£**|**£**|**£**|**£**|
|Rev R Viana|Minister|Non-secured loan|March 2023|4,398|848||3,550|
|Deacon S Viana|Minister|Non-secured loan|November 2023|4,400|500||3,900|
|Rev. T. Cavanagh|Superintendant|Non-secured loan|October 2019|300|300||0|
|Poole
Methodists|Circuit Church|Non-secured loan|August 2025|0||80,000|80,000|
|**Total**||||**9,098**|**1,648**|**80,000**|**87,450**|
|||||||||
31
POOLE BAY METHODIST CIRCUIT ACCOUNTS FOR THE YEAR ENDED 31[st] AUGUST 2021
## **DECLARATIONS**
## **Financial Representative**
I can 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 Meeting.
**Signature of the Financial Representative** Date 1[st] March 2022
**Name** Louise Tidd
**Address** Poole Bay Methodist Circuit The Circuit Office Winton Methodist Church Heron Court Road Bournemouth BH9 1DE
## **Presentation to the Circuit Meeting for approval.**
I confirm that the accounts have been presented to the Circuit Meeting on 8th March 2022 and were approved.
## **Signature of the Chair of the meeting**
**Name of the Chair at the meeting**
Rev R Viana
**Date**
8th March 2022
32
POOLE BAY METHODIST CIRCUIT ACCOUNTS FOR THE YEAR ENDED 31[st] AUGUST 2021
## Independent Auditor's Report to the Members of Poole Bay Methodist Circuit
## **Opinion**
We have audited the financial statements of Poole Bay Methodist Circuit for the year ended 31 August 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 ‘‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’’.
In our opinion the financial statements:
- give a true and fair view of the state of the charity's affairs as at 31 August 2021 and of its results for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charity’s ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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POOLE BAY METHODIST CIRCUIT ACCOUNTS FOR THE YEAR ENDED 31[st] AUGUST 2021
## Independent Auditor's Report to the Members of Poole Bay Methodist Circuit
## **Matters on which we are required to report by exception**
In the light of our knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the financial statements.
We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of Trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of Trustees**
As explained more fully in the Statement of Trustees’ Responsibilities set out on page 13, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the Charity. We gained an understanding of the Charity and the sector in which the Charity operates as part of this assessment to identify the key laws and regulations affecting the Charity. As part of this, we reviewed the Methodist Church website for an indication of any regulations in place and discussed these with the relevant individuals responsible for compliance. The key regulations we identified were Charity legislation, health and safety regulations and breaches of The General Data Protection Regulation (“GDPR”). We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011 and Charities SORP - FRS 102.
We discussed with management how the compliance with these laws and regulations is monitored and discussed policies and procedures in place. We also identified the individuals who have responsibility for ensuring that the Charity complies with laws and regulations and deals with reporting any issues if they arise. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the Charity’s ability to continue trading and the risk of material misstatement to the accounts.
34
POOLE BAY METHODIST CIRCUIT ACCOUNTS FOR THE YEAR ENDED 31[st] AUGUST 2021
## Independent Auditor's Report to the Members of Poole Bay Methodist Circuit
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:
- Enquiries of management and trustees regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements. As part of these enquiries we also discussed with management whether there have been any known instances, allegations or suspicions of fraud, of which there were none.
- Reviewed filings with the Charity Commission and whether there were any serious incident reports made during the year, of which there were none.
- Discussed with management if any health and safety incidents have been recorded during the year, of which there were none.
- Review of the GDPR policy and enquiries to management as to the occurrence of any reportable breaches, of which there were none.
- Reviewed legal and professional costs to identify any possible non-compliance or legal costs in respect of noncompliance, of which there were none.
- Reviewed Board minutes.
- Audited the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.
- Reviewed estimates and judgements made in the accounts for any indication of bias, of which there were none.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
## **Use of our report**
This report is made solely to the charity Trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our work has been undertaken so that we might state to the Trustees those matters we are required to state to Trustees in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its Trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Francis Clark LLP, Statutory Auditor Towngate House 2-8 Parkstone Road Poole Dorset BH15 2PW
Date: 21 March 2022
_Francis Clark LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006._
35