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2020-08-31-accounts

Annual Report and Financial Statements for the Year Ended 31 August 2020

The Hants-Surrey Border Methodist Circuit

Charity registration number: 1137593

Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham PO18 8NF

THE HANTS-SURREY BORDER METHODIST CIRCUIT

Contents

Reference and Administrative Details 1 to 2
Trustees' Report 3 to 7
Independent Examiner's Report 8
Statement of Financial Activities 9
Balance Sheet 10
Notes to the Financial Statements 11 to 23

THE HANTS-SURREY BORDER METHODIST CIRCUIT

Reference and Administrative Details

Charity Registration 1137593 Number Principal Office C/o 84 Peabody Road Farnborough Hampshire GU14 6DY Bankers HSBC Bank Plc. Lansdowne House 74 High Street Alton Hants GU34 1EZ 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 Independent Examiner Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham PO18 8NF

Page 1

THE HANTS-SURREY BORDER METHODIST CIRCUIT

Reference and Administrative Details

Trustees

Ashby, Aileen Jones, Liz Blake, Chris Kember, David Brewerton, Lindsey Kingston, Paul Bridson, Rolfe Lambert, Neil Buckett, Melvyn Lander, Carol Burgess, Kym Lawson, Gisela Butler, Patrick Maw, Jackie Chuter, Anne Micklefield, Andrew Clark, Julie Moll, David Compton, Denis Moore, Ian Cooper, Liz (from 04/12/19) Moore, Jayne Costello, Alan Noakes, Alison Crane, Philip (to 04/12/19) O’Sullivan, Kathy Curley, Nina Pook, Ann Curtis, Steve Press, Sally Dewey, Steve Rawling, Mark (to 04/12/2019) Fitch, Linda Richards, Heather Gaines, Carole Sanderson, Alex Gawthrop, Colin Sargeant, Ian Gawthrop, Frances Seabrook, Linda (to 05/03/20) George, Liz Sexton, Brian Goldring, Alan (to 04/12/19) Simpkins, Philip Gray, Neil Simpson, Muriel Greig, Rita Slatter, Billy (to 24/06/20) Griffin, Beale Smith, Richard Hayes, Betty Smith, Sue Hoff, Gina Ter Kuile, Gillian Hopkins, Michael Titterington, Graham Hunter, Christopher Wheeler, John Jiagge, Robert Wisbey, Peter Johnston, Colin

Page 2

THE HANTS-SURREY BORDER METHODIST CIRCUIT

Trustees' Report

The Trustees present the annual report together with the financial statements of the charity for the year ended 31 August 2020.

Structure, governance and management

Nature of governing document

The charity was established by a Deed of Union (1932) and Methodist Church Act (1976) Adopted 26th August 2010.

Recruitment and appointment of trustees

Trustees selection method:

Additional governance issues

The Hants-Surrey Border Circuit was formed on 1 September 2012 by part of the Aldershot, Farnborough & Camberley Circuit joining with the Farnham & Alton Circuit, which was then re-named to Hants-Surrey Border Circuit. The Farnham & Alton Circuit was registered as an individual charity on 26th August 2010, with Charity No. 1137593. The new circuit continues to use this number but with a change of name.

The Circuit comprises eleven churches: Aldershot, Alton, Cove, The Spire (Farnham), Fleet, Frimley Green, Hale, Hartley Wintney, North Camp, Rowledge and Elvetham Heath (LEP), as well as the Ash Vale Chapel. Work continued through the year to further develop the Circuit in order to help it effectively fulfil its purpose as mentioned below under objectives and activities.

The Circuit Assessment is reviewed annually to cover the cost of meeting the objectives and activities listed below, and is shared between each of the churches on an equitable basis. Under Standing Orders the Circuit must meet its financial obligations in relation to the support of its Ministers, six manses and Connexional requirements. The Circuit therefore needs to generate a reasonable surplus to meet these obligations and ensure that the ‘reserves policies’ relating to its various funds are maintained.

The Ash Vale Chapel continues as a “Fresh Expression” of church. This is regarded as a Circuit ‘project’, with a local management group being appointed by the Circuit Meeting to assume responsibility for routine maintenance of the property and day-to-day oversight of its activities. Within this framework, the Circuit continues to assume responsibility for the Ash Vale Chapel building, with expenditure on this being met from Assessment. In addition, the Circuit has sponsored the development of a Live Room and Recording Studio in part of the building, intended as a centre for the development of Christian music.

The Circuit is running a Pioneer Project at the Wellesley Development in Aldershot where some 3,850 new homes are planned. A new manse has been purchased on the Development and a Pioneer Minister has been appointed. This work is a shared partnership with the Guildford Anglican Diocese with each party initially bearing 50% of the cost and the Project contributing an increasing proportion.

Page 3

THE HANTS-SURREY BORDER METHODIST CIRCUIT

Trustees' Report

Objectives and activities

Objects

The purposes of the Methodist Church are and shall be deemed to have been since the date of union the advancement of -

• the Christian faith in accordance with the doctrinal standards and the discipline of the Methodist Church;

• any charitable purpose for the time being of any Connexional, district, circuit, local or other organisation of the Methodist Church;

• any charitable purpose for the time being of any society or institution subsidiary or ancillary to the Methodist Church;

• any purpose for the time being of any charity being a charity subsidiary or ancillary to the Methodist Church.

Summary of the objects of the charity as set out in its governing document

The Circuit’s Mission Policy is set out in a separate document. Essentially, it provides for:

Public benefit

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Summary of the main activities undertaken for the public benefit in relation to these objects

The Circuit is the place where new initiatives and changes in the pattern of church life originate. This is where the staffing capacity and resources for ministry are organised, where fresh expressions of church or new pioneer ministries are launched, and where decisions to close churches in the interest of re-shaping mission priorities are debated.

We act as an umbrella and resourcing body for the 10 local churches, 1 LEP and 2 mission outreach projects in the Circuit, so that they can effectively fulfil their mission statements to engage with all those who seek God and/or a spiritual dimension to their lives.

We organise, provide leadership of, and administer the Circuit Meeting as the governing body of the Circuit, and provide the link upwards to District and Conference. The public are welcome to attend.

We administer the stipends and expenses of ministers and salaries and expenses of lay workers in the Circuit, provide pastoral support and, where appropriate, provide their accommodation.

We promote the well-being of Circuit churches and open access to all who wish to participate in their activities, through oversight of individual church councils and their decision-making, and in consultation with their representatives in the Circuit Meeting (who are also trustees of the Circuit).

Page 4

THE HANTS-SURREY BORDER METHODIST CIRCUIT

Trustees' Report

We prepare the quarterly Circuit preaching plan that assigns ministers and lay preachers to church services, to which all are welcome.

We encourage ecumenical work and activities with other Christian denominations and their congregations.

We periodically sponsor events within the Circuit that are open to all.

Achievements and Performance

Review of activities

Through the local churches represented in the Circuit, and the resources allocated to them, the following achievements have been made:

Continued opportunities for public worship in many of the larger towns and villages in the Circuit.

The continued ability to offer occasional services (e.g. baptisms, weddings, funerals) to both church members and others, as required.

Continued pastoral care of a wide range of age groups, both within the church membership and the wider community.

Continued participation in various community-based projects.

Continued support for the work of local charities and community groups.

The continued management and maintenance of properties required to achieve the aims and objectives of the Circuit.

Operating a Pioneer Ministry in the new Wellesley development in Aldershot, in partnership with the local Anglican Diocese. The ecumenical arts and community project based at The Chapel in Ash Vale has been enhanced by the development of a music studio which will be used as a resource for training individuals and community groups.

The closure of church buildings during Lockdown due to the Covid-19 pandemic has brought an unexpected uncertainty to the operation of the Circuit. Many of the activities of the individual churches have continued on-line and individual members have continued to contribute financially to the work of the churches through various electronic channels. Churches which have previously received significant income from external rentals of their facilities have been particularly challenged by this situation. Financial reserves held at local church and Circuit level are being utilised to cover expenditure where required. The Officers of the Circuit are continuing to monitor the situation and to report to the Trustees of the Circuit at regular intervals.

Acknowledgement of the work of volunteers

The trustees are grateful for the considerable amount of time and resources given to the Circuit by many volunteers, without whose input the Circuit could not achieve its aims and objectives.

Page 5

THE HANTS-SURREY BORDER METHODIST CIRCUIT

Trustees' Report

Financial Review

Income and expenditure

Overall, the net movement in funds for the year was £61,153 (2019 - £21,538).

Reserves policy

The Trustees have considered the level of reserves they wish to retain, appropriate to the charity's needs. This is based on the charity's size and the level of financial commitments held. The Trustees aim to ensure the charity will be able to continue to fulfil its charitable objectives even if there is a temporary shortfall in income or unexpected expenditure. The trustees will endeavour not to set aside funds unnecessarily.

General fund expenditure during the financial year was £298,451 (2019 - £301,346).

General fund and designated general reserve was £268,779 (2019 - £212,787).

This represents around 10 months expenditure – more than the 6 months required by the Circuit’s Reserves Policy.

Other unrestricted (designated) funds are generally performing satisfactorily. Where these funds appear to be in deficit at year end, this is only a temporary situation which will be corrected once new funds are allocated from Assessments and other sources at the beginning of the next financial year.

Excluding property, the balance of the unrestricted funds stands at £506,585 (2019 - £411,305).

The end of year balance on the Circuit Model Trust Fund stands at £49,792, of which the following amounts have been earmarked: Church on The Heath £26,611

DAF Levy £1,245 Wellesley £5,182 Uncommitted £16,754

The Reserve Projects fund contains the net proceeds from the sale of our Frimley Green manse. The balance, amounting to £13,818 is reserved for use in supporting the Wellesley pioneer mission project.

The balance of the restricted trust funds held by the Circuit is £34,353 (2019 - £34,127).

Going concern

After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.

Page 6

THE HANTS-SURREY BORDER METHODIST CIRCUIT

Trustees' Report

Risk assessment

The Trustees actively review the major risks which the charity faces on a regular basis and believe that maintaining the free reserves stated combined with the annual review of the controls over key financial systems carried out on an annual basis will provide sufficient resources in the event of adverse conditions. The Trustees have also examined other operational and business risks which they face and confirm that they have established systems to mitigate the significant risks.

Statement of Trustees' Responsibilities

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

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

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees 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.

The Annual Report was approved by the Trustees of the Charity on 4 March 2021 and signed on its behalf by:

......................................... Christopher Blake Circuit Superindendent

Page 7

THE HANTS-SURREY BORDER METHODIST CIRCUIT

Independent Examiner's Report to the trustees of The Hants-Surrey Border Methodist Circuit

I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 August 2020 which are set out on pages 9 to 23.

Respective responsibilities of trustees and examiner

As the charity’s trustees of The Hants-Surrey Border Methodist Circuit 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 The Hants-Surrey Border Methodist Circuit's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

Since The Hants-Surrey Border Methodist Circuit's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Chartered Institute of Management Accountants, 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 Hants-Surrey Border Methodist Circuit 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 accounting 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.

...................................... G W Schulz ACMA

Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham PO18 8NF

4 March 2021

Page 8

THE HANTS-SURREY BORDER METHODIST CIRCUIT

Statement of Financial Activities for the Year Ended 31 August 2020

Note
Unrestricted
funds
£
Income and Endowments from:
Donations and legacies
2
397,243
Charitable activities
3
13,203
Other trading activities
4
28,870
Investment income
5
2,383
Total income
441,699
Expenditure on:
Charitable activities
7
(380,772)
Total expenditure
(380,772)
Net income
60,927
Net movement in funds
60,927
Reconciliation of funds
Total funds brought forward
2,701,486
Total funds carried forward
15
2,762,413
Note
Unrestricted
funds
£
Income and Endowments from:
Donations and legacies
2
392,693
Charitable activities
3
18,995
Other trading activities
4
28,988
Investment income
5
2,103
Other income
6
5,927
Total income
2
448,706
Expenditure on:
Charitable activities
7
(427,388)
Total expenditure
(427,388)
Net income
21,318
Net movement in funds
21,318
Reconciliation of funds
Total funds brought forward
2,680,168
Total funds carried forward
15
2,701,486		 Restricted
funds
£
-
-
-
294
294
(68)
(68)
226
226
34,127
34,353
Restricted
funds
£
-
-
-
288
-
288
(68)
(68)
220
220
33,907
34,127		 Total
2020
£
397,243
13,203
28,870
2,677
441,993
(380,840)
(380,840)
61,153
61,153
2,735,613
2,796,766
Total
2019
£
392,693
18,995
28,988
2,391
5,927
448,994
(427,456)
(427,456)
21,538
21,538
2,714,075
2,735,613

Page 9

THE HANTS-SURREY BORDER METHODIST CIRCUIT

(Registration number: 1137593) Balance Sheet as at 31 August 2020

Note
Fixed assets
Tangible assets
11
Current assets
Debtors
12
Cash at bank and in hand
13
Creditors: Amounts falling due within one year
14
Net current assets
Net assets
Funds of the charity:
Restricted income funds
Restricted funds
Unrestricted income funds
Unrestricted funds
Total funds
15		 2020
£
2,290,181
38,828
470,093
508,921
(2,336)
506,585
2,796,766
34,353
2,762,413
2,796,766		 2019
£
2,290,181
69
448,328
448,397
(2,965)
445,432
2,735,613
34,127
2,701,486
2,735,613

The financial statements on pages 9 to 23 were approved by the Trustees, and authorised for issue on 4 March 2021 and signed on their behalf by:

......................................... Christopher Blake Circuit Superintendent

Page 10

THE HANTS-SURREY BORDER METHODIST CIRCUIT

Notes to the Financial Statements for the Year Ended 31 August 2020

1 Accounting policies

Statement of compliance

The financial statements have been prepared in accordance with 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) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

Basis of preparation

The Hants-Surrey Border Methodist Circuit meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Income and endowments

Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.

Donations and legacies

Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.

Grants receivable

Grants are only included in the SOFA when the charity has unconditional entitlement to the resources.

Gifts in kind

Gifts in kind are accounted for at a reasonable estimate of their value to the charity or the amount actually realised. Gifts in kind for sale or distribution are included in the accounts as gifts only when sold or distributed by the charity. Gifts in kind for use by the charity are included in the SOFA as incoming resources when receivable.

Donated services and facilities

These are only included in incoming resources (with an equivalent amount in resources expended) where the benefit to the charity is reasonably quantifiable, measurable and material. The value placed on these resources is the estimated value to the charity of the service or facility received.

Gift aid

Incoming resources from tax reclaims are included in the SOFA at the same time as the gift to which they relate.

Page 11

THE HANTS-SURREY BORDER METHODIST CIRCUIT

Notes to the Financial Statements for the Year Ended 31 August 2020

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Grants with Performance Conditions

Where the charity gives a grant with conditions for its payment being a specific level of service or output to be provided, such grants are only recognised in the SOFA once the recipient of the grant has provided the specified service or output.

Grants Payable without Performance Conditions

These are only recognised in the accounts when a commitment has been made and there are no conditions to be met relating to a grant which remain in control of the charity.

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of the resources, eg allocating property costs by floor areas, or per capital, staff costs by the time spent and other costs by their usage.

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.

Tangible fixed assets

Individual fixed assets costing £1500.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Page 12

THE HANTS-SURREY BORDER METHODIST CIRCUIT

Notes to the Financial Statements for the Year Ended 31 August 2020

Depreciation and amortisation

Depreciation is calculated at a rate to write off the cost of tangible fixed assets on a reducing balance over their estimated useful lives. The rates applied per annum are as follows:

Asset class

Fixtures, fittings, equipment

Depreciation method and rate 25% reducing balance

No depreciation is charged to freehold property as the property is maintained to such a standard that the estimated residual value is not less than cost.

Investments

Investments quoted on a recognised stock exchange are valued at market value at the year end. Other investment assets are included at trustees' best estimate of market value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Page 13

THE HANTS-SURREY BORDER METHODIST CIRCUIT

Notes to the Financial Statements for the Year Ended 31 August 2020

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2 Income from donations and legacies

Unrestricted
funds
General
£
Donations and legacies;
Circuit assessments
349,038
Gifts & donations
26,553
Grants received
21,652
397,243		 Total
2020
£
349,038
26,553
21,652
397,243		 Total
2019
£
322,267
39,105
31,321
392,693

3 Income from charitable activities

Unrestricted
funds
General
£
Contractual Income
13,203
4 Income from other trading activities
Unrestricted
funds
General
£
Property rental income
28,870
28,870		 Total
2020
£
13,203
Total
2020
£
28,870
28,870		 Total
2019
£
18,995
Total
2019
£
28,988
28,988

Page 14

THE HANTS-SURREY BORDER METHODIST CIRCUIT

Notes to the Financial Statements for the Year Ended 31 August 2020

5 Investment income

Unrestricted
funds
General
£
Interest receivable and
similar income;
Interest receivable on
bank deposits
2,383
6 Other income
Refunds & compensation		 Restricted
funds
£
294		 Total
2020
£
2,677
Total
2020
£
-		 Total
2019
£
2,391
Total
2019
£
5,927

Page 15

THE HANTS-SURREY BORDER METHODIST CIRCUIT

Notes to the Financial Statements for the Year Ended 31 August 2020

7 Expenditure on charitable activities

Unrestricted
funds
Note
General
£
Activities &
projects
23,319
Bank charges
-
Gifts & grants
255
Insurance costs
5,703
Mission service
fund
61,304
Office costs
1,182
Printing, postage
& stationery
1,508
Quinquennial
expenses
600
Refurbishment &
repairs
22,799
Rent & rates
12,950
Repairs &
maintenance
6,095
South East
District
14,314
Sundry expenses
3,169
Telephone costs
3,441
Training costs
330
Travel &
subsistence
4,989
TVC costs
-
Utility costs
4,625
Visiting speakers
325
Water rates
1,703
Relocation &
removals
3,996
Staff costs
10
203,677
Governance
costs
8
4,488
380,772		 Restricted
funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
68
68		 Total
2020
£
23,319
-
255
5,703
61,304
1,182
1,508
600
22,799
12,950
6,095
14,314
3,169
3,441
330
4,989
-
4,625
325
1,703
3,996
203,677
4,556
380,840		 Total
2019
£
17,621
15
2,285
5,551
59,772
659
1,656
720
47,530
14,166
7,852
12,469
1,389
4,328
598
10,133
8,460
4,659
900
1,761
-
218,864
6,068
427,456

Page 16

THE HANTS-SURREY BORDER METHODIST CIRCUIT

Notes to the Financial Statements for the Year Ended 31 August 2020

8 Governance costs

Unrestricted
funds
General
£
Independent examiner fees
Examination of the
financial statements
1,680
Legal & professional fees
2,808
4,488		 Restricted
funds
£
-
68
68		 Total
2020
£
1,680
2,876
4,556		 Total
2019
£
1,680
4,388
6,068

9 Trustees remuneration and expenses

7 Trustees received remuneration and benefits amounting to £167,499 (2019 - 8 Trustees £200,584). No trustees were paid for acting as a trustee.

7 Trustees received reimbursement of expenses amounting to £6,937 (2019 - 8 Trustees £10,484). All relate to reimbursement of expenses incurred on behalf of the Circuit.

10Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs		 2020
£
165,268
10,444
27,965
203,677		 2019
£
170,821
16,017
32,026
218,864

The monthly average number of persons (including senior management team) employed by the charity during the year expressed as full time equivalents was as follows:

2020 2019
No No
Staff 5 5

Page 17

THE HANTS-SURREY BORDER METHODIST CIRCUIT

Notes to the Financial Statements for the Year Ended 31 August 2020

11Tangible fixed assets

Land and buildings Total £ £ Cost At 1 September 2019 2,290,181 2,290,181 At 31 August 2020 2,290,181 2,290,181 Depreciation At 31 August 2020 - - Net book value At 31 August 2020 2,290,181 2,290,181 At 31 August 2019 2,290,181 2,290,181

The property was previously included in the financial statements at building insurance value. On the 1st September 2015 (being the date of transition to FRS102), the Trustees opted to state the property at deemed historical cost representing each property's gross carrying value as at 1st September 2015 being that property's insurance reinstatement value, as notified by Methodist Insurance Plc at the renewal date. The value of the land element of the property is deemed to be one third of the total carrying value. If acquired after 1st September 2015, the cost of acquisition is taken. No depreciation is provided because the Trustees consider the current residual fair value of the properties in their present condition is not less than its deemed cost and in the absence of any evidence of impairment, any depreciation provision for the buildings component of the properties would be considered immaterial.

12Debtors

12Debtors
Accrued income
Other debtors
13Cash and cash equivalents
Cash at bank		 2020
£
38,828
-
38,828
2020
£
470,093		 2019
£
-
69
69
2019
£
448,328

Page 18

THE HANTS-SURREY BORDER METHODIST CIRCUIT

Notes to the Financial Statements for the Year Ended 31 August 2020

14Creditors: amounts falling due within one year

14Creditors: amounts falling due within one year
Other creditors
Accruals		 2020
£
-
2,336
2,336		 2019
£
1,285
1,680
2,965

Page 19

THE HANTS-SURREY BORDER METHODIST CIRCUIT

Notes to the Financial Statements for the Year Ended 31 August 2020

15Funds

15Funds
Balance
at 1
September
2019
£
Unrestricted funds
General
General Funds
169,518
Designated
General Reserve
43,269
Manse Property Res.
Value
1,539,699
Manse Property Repair
Res.
12,198
Church Property Res.
750,482
Benevolent Fund
205
The Chapel
15,890
The Wellspring
7,515
Broomleaf
18,184
North Camp Lay Worker
Fund
9,660
AUE Community Worker
14,060
AUE Local
6,892
AUE Shared Manse
6,953
Mission Support
23,494
Special Gifts
-
Circuit Model Trust
Fund
50,735
Reserve Projects Acc.
32,732
2,531,968
Total unrestricted
funds
2,701,486
Restricted funds
Alma Adley Legacy
34,127
Total funds
2,735,613		 Incoming
resources
£
Resources
expended
£
358,947
(287,019)
236
(65)
-
-
32
(26,156)
-
-
30
(200)
9,018
(7,725)
17,872
(23,319)
28,840
(5,283)
13,781
(11,378)
10,000
(13,652)
-
-
2,376
(4,444)
-
-
-
(107)
427
(1,370)
140
(54)
82,752
(93,753)
441,699
(380,772)
294
(68)
441,993
(380,840)		 Transfers
£
(16,107)
-
-
35,000
-
-
-
-
(41,741)
-
6,892
(6,892)
-
41,741
107
-
(19,000)
16,107
-
-
-		 Balance
at 31
August
2020
£
225,339
43,440
1,539,699
21,074
750,482
35
17,183
2,068
-
12,063
17,300
-
4,885
65,235
-
49,792
13,818
2,537,074
2,762,413
34,353
2,796,766

Page 20

THE HANTS-SURREY BORDER METHODIST CIRCUIT

Notes to the Financial Statements for the Year Ended 31 August 2020

The Designated funds are represented by the Charity's cash reserves and fixed assets investments and are to be expended as detailed above:

• General reserves comprise: the accumulated and set aside general funds as a specific reserve.

• Manse property reserves comprise two parts being: The asset value of the manses and the funds set aside to refurbish & maintain them.

• The Benevolent fund: Money received to be used for benevolent purposes.

• The Chapel: Income, expenditure and balances connected with The Chapel, Ash Vale project.

• The Wellspring: Income, expenditure and balances connected with The Wellspring, Wellesley project.

• North Camp Lay Worker Fund: Funds received and paid in connection with NCMC community worker.

• Broomleaf Fund - funds received and paid in connection with the letting of the Broomleaf Road manse. End of year balances are transferred to the Mission Support Fund, which is available for use by local churches to support specific outreach projects.

• AUE Manse Fund - funds received and paid in connection with the purchase and operation of a new manse on the Aldershot Urban Extension, which are to be shared with other denominations through a formal sharing agreement.

• AUE Community Worker Fund - funds received and paid in connection with the employment of a community worker for the AUE project, again shared with other denominations through a formal sharing agreement.

• AUE Local Fund - local income generated and expenditure incurred by the Wellesley Pioneer Project.

• The CMTF (Circuit Model Trust Fund) fund derives from sales of chapels and manses and its use is restricted by Conference. The restriction is an internal regulation, although the fund can be used for a variety of purposes. Some money held in the MTF has been earmarked by the trustees for anticipated property costs & mission projects, in the next 2 to 3 years.

• The Reserves Projects fund holds the proceeds of the sale of the former Queensway manse pending its use in the purchase of the AUE manse, with any residual balances being reserved for use in meeting operational expenses of the Wellesley project.

The Restricted funds are represented by the Charity's cash reserves and are to be expended as specified above:

• Alma Adley fund derives from a legacy received by Aldershot Farnborough & Camberley Methodist Circuit and part was transferred to the Hants-Surrey Border Circuit and associated interest applied.

Page 21

THE HANTS-SURREY BORDER METHODIST CIRCUIT

Notes to the Financial Statements for the Year Ended 31 August 2020

Balance
at 1
September
2018
£
Unrestricted funds
General
General Funds
121,478
Designated
General Reserve
43,025
Manse Property Res.
Value
1,539,699
Manse Property Repair
Res.
10,890
Church Property Res.
750,482
Benevolent Fund
205
The Chapel
39,634
The Wellspring
3,448
Broomleaf
9,773
North Camp Lay Worker
Fund
30,051
AUE Community Worker
3,888
AUE Local
-
AUE Shared Manse
8,875
Mission Support
25,402
Special Gifts
-
Circuit Model Trust
Fund
51,702
Reserve Projects Acc.
41,616
2,558,690
Total unrestricted
funds
2,680,168
Restricted funds
Alma Adley Legacy
33,907
Total funds
2,714,075		 Incoming
resources
£
Resources
expended
£
345,572
(301,346)
244
-
-
-
31
(8,721)
-
-
-
-
19,778
(43,522)
21,688
(17,621)
28,778
(20,367)
11,378
(11,769)
10,000
(14,774)
6,892
-
2,578
(4,500)
326
(2,234)
800
(1,042)
429
(1,396)
212
(96)
103,134
(126,042)
448,706
(427,388)
288
(68)
448,994
(427,456)		 Transfers
£
3,814
-
-
9,998
-
-
-
-
-
(20,000)
14,946
-
-
-
242
-
(9,000)
(3,814)
-
-
-		 Balance
at 31
August
2019
£
169,518
43,269
1,539,699
12,198
750,482
205
15,890
7,515
18,184
9,660
14,060
6,892
6,953
23,494
-
50,735
32,732
2,531,968
2,701,486
34,127
2,735,613

Page 22

THE HANTS-SURREY BORDER METHODIST CIRCUIT

Notes to the Financial Statements for the Year Ended 31 August 2020

16Analysis of net assets between funds

16Analysis of net assets between funds
Tangible fixed assets
Current assets
Current liabilities
Total net assets
Tangible fixed assets
Current assets
Current liabilities
Total net assets		 Unrestricted
funds
General
£
2,290,181
474,568
(2,336)
2,762,413
Unrestricted
funds
General
£
2,290,181
414,270
(2,965)
2,701,486		 Restricted
funds
£
-
34,353
-
34,353
Restricted
funds
£
-
34,127
-
34,127		 Total funds
2020
£
2,290,181
508,921
(2,336)
2,796,766
Total funds
2019
£
2,290,181
448,397
(2,965)
2,735,613

Page 23