**THE GWENT HILLS AND VALES CIRCUIT OF THE METHODIST CHURCH TRUSTEES’ ANNUAL REPORT TO THE CHARITY COMMISSION FOR THE YEAR 1[st] SEPTEMBER 2021 – 31[st] August 2022** ## **Introduction** The Gwent Hills and Vales Circuit of the Methodist Church came into being as the result of a decision by the Wales Synod of the Methodist Church and was formally acknowledged on 1[st] September 2009. At the beginning of the year under review, the Circuit consisted of twenty-three churches located across several valleys in mid and south Wales. The Circuit’s trustees are the members appointed by the twenty-three churches to the Circuit Meeting, which gathers three times a year, to discuss and make decisions on matters pertaining to the life and work of the Circuit. ## **Aims and Organization** The Circuit leadership is provided by a team consisting of five ordained ministers. We continue to receive significant assistance from ministers retired from the full-time work, but who are still active in leadership. Five lay persons have been appointed as circuit stewards, and three other lay persons have specific responsibility for finance, property, and the work of local preachers. Administrative services are available to the Leadership Team and the Circuit through a part-time Administrator paid by the Circuit, a post which was filled in March 2021. In considering its aims, the Circuit Leadership Team has considered the Charity Commission’s guidance on public benefit, in particular the specific guidance on charities for the advancement of religion. Hence the Gwent Hills and Vales Circuit exists to promote the Gospel of Jesus Christ through providing opportunities for worship, mission, and evangelism. Since its inception, the circuit has made mission a priority, with churches being challenged to undertake outreach on a regular basis. There is a particular emphasis on impacting the community beyond the membership of the churches. The Circuit has responsibility for finance related to the upkeep of ministers and their homes (manses), and the support of mission-related activities across the Circuit. The individual churches do much of the day-to-day planning of events and projects to support these aims, but the Circuit has set certain priorities and placed emphasis on certain activities to encourage them to carry out their mandate. 1 ## **Review of the Year** The Circuit ensures that worship services take place regularly in all its churches and that buildings and ministers are available for special services, including baptisms, weddings and funerals. Services are offered with varying formats and to appeal to various groups within the society such as children, families, and adults with learning disabilities. During this Connexional year, both church life and circuit life resumed their more normal activities following the Coronavirus pandemic. Whilst church buildings were closed, the mission of the charity had been promoted by postal and digital means. Letters and service sheets had been sent out regularly through Royal Mail and by email, and services were made available to people via Zoom. These practices have continued and are regarded as a positive outcome of an otherwise difficult time. Pastoral visiting in person has resumed but contact by telephone calls and letter still continues. Staff and pastoral teams have continued to offer spiritual, emotional, and mental support to members and adherents, as well as through practical initiatives such as local food banks and community hubs. The pandemic also resulted in experimentation in worship and spiritual support. The Circuit currently hosts a weekly zoom/online service and individual churches host Taizé worship and Bible study groups online. The digital platform has enabled people from all over the world to join in the activities, along with local people of different denominations and those with no regular church connections. During the pandemic, the charity trustees were kept informed of developments and consulted about matters needing trustee approval by email and post. As acceptance of video conferencing grew, it became possible to hold trustee meetings by Zoom whilst ensuring that those not able to access digital media were consulted by mail, ensuring full engagement with the matters of the charity. The practice of using Zoom for trustee meetings has decreased since the end of the pandemic but Zoom continues to be used for meetings of the Circuit Leadership Team. ## **Income Trends** The Circuit income is primarily drawn from assessments paid by the circuit churches, totalling £288,972. Total income for the year was £466,033. Of this, £157,000 was capital receipts in the form of Newbridge and Panteg Chapels which passed to Circuit responsibility when the churches ceased to meet. Abertillery, Pontypool and Trinant churches also ceased to meet during the year and the respective chapels passed to the Circuit. Capital receipts for these chapels were not shown in the current year accounts as the buildings had not been valued by the end of the year. A further £13,735 was received in rental from tenants in Newbridge and Panteg chapels. 2 ## **Expenditure Trends** Stipend expenditure has increased each financial year in line with Conference-approved increases. The expenditure budget approved for the year was £302,163. This was to be raised from churches by way of assessment. The actual amount raised from churches was £288,972. The shortfall resulted from churches mentioned ceasing to meet and was funded from Circuit reserves. The actual spend against budget for the year was £301,375. The main components of the £1k underspend were: |underspend were:||| |---|---|---| ||Underspend|Overspend| |Minister sick pay refund|£6k|| |Administrator increased hours||£9k| |Print Stationery & Post||£4k| |Preaching fees|£3k|| |Quinquennial Building Inspections|£5k|| |Total|£14k|£13k| 19.1% of expenditure was the Circuit’s contribution to the District and Connexion, of which a significant part is used to fund the work of the wider Methodist Church. ## **Fund Balances** As of 31[st] August 2022, the net current assets of the Circuit were £383,786, giving approximately 15 months’ cover for expenditure. The trustees are making reserves available for church and circuit projects, and the improvement of Varteg Cemetery to bring it to a safe and sustainable condition. ## **Plans for 2022/23** Circuit financial plans for 2022/23 have been prepared based on an on-going, full-time ordained staff of five, a part-time administrator and cost of living stipend increases. This resulted in a budget of £328k. Considering the financial pressures on churches due to COVID, trustees agreed assessments which maintained the same level per member as in 2021/22 plus an inflation factor of 4.2%. Four churches who would be entitled to a reduction in assessment offered to maintain payments at the 2021/22 level. This resulted in planned underfunding of the budget of £17,103 which trustees agreed would be funded from Circuit reserves. 3 ## **Basis of preparation and legal framework** The Charity’s annual report and accounts for the year ended 31[st] August 2021 have been prepared in accordance with the Charities Act 2011 and the Charities Statement of Recommended Practice 2015 as applicable to the Financial Reporting Standard (FRSSE) 2015. **Full Name of Charity** : Gwent Hills and Vales Methodist Circuit ## **Registration Charity Number:** 1140255 ## **Date of Registration:** 2009 **Main Communication Address:** Circuit Office, Castle Street Methodist Church, Castle Street, Abergavenny, NP7 5EE The members of the Gwent Hills and Vales Circuit Meeting are the Charity Trustees, membership being made up of circuit office holders, ministers and representatives appointed by local churches. ## **Circuit Ministers and Officers** Active Ministers: Rev Sue Lawler, Rev Stephen Boxall, Rev Paul Donnison, Rev Dr Gareth Edwards, Rev Andrea Sims Supernumerary Ministers: Rev Anthony Gregory, Deacon Gwenllian Knighton, Rev Roy Watson Circuit Lay Workers: Mr John Evans, Mrs Celia Price Circuit Finance Officer: Mr Ken Bailey Circuit Property Steward: Mrs Jan Jackson Circuit Local Preachers Secretary: Miss Margaret Webber Circuit Stewards: Miss Jane Evans, Mrs Siân Millar, Mrs Rachel Rimmer, Mrs Gillian Timm, Mrs Christine White Circuit Administrator: Ms Joanna Saunders Circuit Treasurer: Mr Ken Bailey functioned as the principal officer overseeing the day-today financial management and accounting for the circuit during the year. Independent Examiner: Newton Green & Co, 17 Wyelands View, Mathern, Chepstow NP16 6HN Investment Bankers: Central Finance Board of the Methodist Church, Trustees for Methodist Church Purposes. 4 ## **Objectives and Purpose** The charity objective is to function as a resource provider for the Methodist Church within the area around the valleys of southeast Wales. 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 organization 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. Also, the organization 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; provision of chaplaincy services to the local university and other institutions _._ ## **Public Benefit** We confirm the trustees have had regard to the Charity Commission’s guidance on public benefit. ## **Structure, Governance and Management** The governing document for the circuit is the Deed of Union (1932) and Methodist Church Act (1976). Detailed governance arrangements are outlined within the Constitutional Practice and Discipline of the Methodist Church by order of the annual conference (CPD). Day to day management of the Circuit is undertaken by the Circuit Leadership team along with the Local Preachers Meeting and the Circuit Finance and Property Committees. ## **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’**_ , is given to all new Circuit meeting members as induction to their role as trustees. 5 ## **Related Parties** The Circuit is part of the Wales Synod and is also accountable to the Methodist Conference. The following Methodist churches are linked to the Circuit at the end of the reporting period: Abergavenny, Beaufort Hill, Bedwas, Blackwood, Blaenau Gwent, Blaina, Cwmcelyn, Fairhill, Garndiffaith, Glasbury, Hope, Llanelly Hill, Llanyrafon, Nantyglo, Pontllanfraith, Pontnewynydd, Race, St. James, Tredegar, Trinity, Tyllwyn, Upper Cwmbrân, Wesley Place. ## **Risk Management** The major risks have been identified and recorded by the Circuit Finance and Property Committees with professional advice taken as required. There is a regular annual review process undertaken. Income and Expenditure is being monitored in total and is compared with the approved annual budget on a half-yearly basis to detect trends as part of the risk management process to avoid unforeseen calls on reserves. ## **Safeguarding** Every person has a value and dignity which comes directly from the creation of people 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, co-operating 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. 6 - 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 Gwent Hills and Vales Circuit commits itself to ensuring the implementation of Connexional Safeguarding Policy, government legislation, guidance, and safe practice in the circuit and in the churches. The Gwent Hills and Vales 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. ## **Supervision** The Gwent Hills and Vales Circuit fully embraces the requirements of the Methodist Church’s Supervision Policy 2021. Supervision in the Methodist Church is an exploratory and reflective process. Every ordained minister is required to meet one-on-one for an hour and a half with a trained, resourced, and approved supervisor to reflect on their vocation and practice at least six times per year. Others with significant pastoral responsibility are encouraged to be in supervision. ## **GDPR** The Gwent Hills and Vales Circuit commits itself to ensuring the implementation of government legislation, and guidance and good practice as provided by the Methodist Church TMCP, in the circuit and in the churches. The Gwent Hills and Vales 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 responsibilities as required by the GDPR. 7 ## **Reserves Policy** In September 2021 the Trustees voted to amend the Reserves Policy to the following: 1. To hold a minimum sum equivalent to twelve months’ average expenditure. This should be sufficient to meet any unforeseen item of major expenditure on manses and to be able to continue, in the short term, funding planned activities in the event of any inability to raise the full Circuit Assessment from churches. This was increased from six to twelve months by the Circuit Meeting on 10th September 2020 in response to the additional risks posed by the COVID pandemic. In order to achieve this minimum, at the start of each Quarter (1st September, December, March and June) 15 months’ expenditure should be in reserve, as church assessments are due at the end of each quarter, one quarter in advance. 2. To hold £100,000 against future requirements for remedial work to boundary and internal walling at Varteg Cemetery. 3. Any remaining reserves are available for Circuit or Church mission projects which may include related building maintenance or improvement works. ## **Report approved at Circuit Meeting held on 15[th] June 2023 and signed on behalf of the Trustees by its Chair, Rev Catherine Brobbey.** **CCAR2021-22/CB-KB-js/06-23** 8 CIRCUIT ACCRUAL ACCOUNTS THE METHODIST CHURCH STANDARD FORM OF ACCOUNTS Gwent Hills & Vales Circurt FOR THE YEAR ENDED 31 AUGUST 2022 Wales S nod District Circuit no 2113 Registered Charity - Charlty Registratlon number 1140255 If not a registered charity Her Majesty's Revenue and Customs Gift Aid number (The HMRC number is equivalent lo a registered charity number in terms of eviden￿ of charitable status and may be used lo give lo donors or grant funders wishing lo see evidence of the organisalion's charitable status. Melhodisl charities in England and Wales that are not registered charities are excepted from registration under Slatulory Instrument 2014 No.2421 Ministers.. Rev S Lawler Rev G Edwards Rev S Boxall Rev A Sims Rev P Donnison Circuit Stewards.. Miss J Evans Mrs J Jackson Mrs S Millar Mrs R Rirnmer Mrs G Timm Miss M Webber Mrs C While Treasurer". Mr K Baile Pagelof4 ¢J f4 v O) IÈ) r ro Irj Lf) r *n ￿ o 0)m￿0 (4 (£1 o 10 o c4 ts) in c o o L>Q C C0 r Pl In (n ID ￿(0 W CTJ- f*4 ty) o) rq 10 Ill r JVP 17) (o o ¢fj o tr u> ) ￿1 tt c UCJ C C VAT Since the Circuit is not VAT registered. all input VAT 15 charged wrth the expenses to which it refers. {fj Tangible fixed assets for use by the Circuit Tangible fixed assets are c2pita1i5ed Il they can be used lor more than one year and cost at least £500. A printer for the Circuit Office w8s purchased foi £2.034 during the year. It is being depreaaled over 36 months. The freehold property 15 shown in the aGwunts at 2022 deemed values, ol which the land component of Manse5 v8lue is deemed to be £250.000. No depreciation is provided on the buildings because the trustees consider the current residual lair value of the manse buildings lon the assumption that it had reached the end of its useful economic life by the ye8r- endl lo be not less than its current value. Any depieciation would not be material. The properties have been reviewed for impairrnent. Igl Investment Properties Snatchwood Chapel became unused during 2020-21 further to the Circurt Trustee$ 8greÈing that the church cease to meet IminLJie 10121105120201. It was sold on 0310912021 realising £92,144 after marketing and lègal expenses. After deduction of Connexional levy1£14,4291 and insurance. utility and maintenance expenses1£3,1921 the net proceeds were £74,523. Newbridge Chapel became unused during the current year further to the Circuit Trustees agreeing that the church cease to meet (minute 4.10109109120211. The Trustees approved the sale ol the property Iminule 6.2.1 of 17103r20221. The sale Is expected to be completed in 2023. The chapel is shown as a Capital Re￿Ipt of £72k in the current yeai, being the Qualified Surveyor's Report valuation £120k less Connectional Levy 01228k and forecast expenses of £20k. Abertillery Chapel became unused duTing the curTenl year further to the Circuit Trustees agreeing that the church cease to meet Iminute 5.1 of 17103120221. The Trustees appioved the sale of the property (minute 6.2.2 of 17103120221. The property has not yel been valued and is expected to be sold in 2023. The anticipated Capital Receipt will be shown in the 2022-23 accounts. Prepared by.. Ken Bailey, Circuit Treasurer Il" March 2023 Pagelof5 Pontypool Chapel became unused during the current year fijrther to the Cirwit Truslees ￿leeing that the churth cease lo meet Iminute 5.2 0117103r20221. The Trustees had not yet approved the disposal of the propety at the end of the year. As the land is leasehold little or no capital is expected to be realised so no Caprtal Receipt h8s been recorded. Panteg Chapel became unused during the current year. The chapel is shown as a Capital Receipt of £85k in the current year. being the Qualified Surveyor's Report valuation £125k less Connectional Leyy of £30k and forecast expenses ol £10k. The Circuit Trustees are expected to agree that the church cease to meet and the sale of the property al their meeting of 17103r2023. The property is expected to be sold in 2023 Trinant Chapel became unused during the current year further to the Circuit Tru8tees agreeing that the church cease to Fneel lrninute 5.1 of 09106120221. The property has not yet been valued and is expe¢ted to be sold in 2023. The anlicipaled Capital Receipt will be shown in the 2022-23 accounts. All other ro rties are held for the long-tem) pijrptsses of the tharity. {hl Investrnents Investments are valued in the balance sheet al market value at the year end. Investment incorne is included in Ihe accounts when receivable and any gains or losses on revaluation at the yearond are shown in thè SOFA. (i) Debtors Debtors comprise8'. Prepayment of September 2022 stipends in August 2022.. Late refund ol a sick minister's stipends lor July and August 2021". Insurance. utility, and essential maintenancè costs of closed Chapels to be lunded frorr pr￿ed5 of sale.. Late payment of assessments". Total £15,671 £5,881 £13,821 £5,702 £41,076 ti) Creditors Credittsrs comprises.. 1 st quarter 2021122 assessment received trom most churches in August 2021.. Propety maintenance.. Mini5t81 and preacher expenses dairned after year end.. Collections for others.. Other Sundry expenses.. Total £62,952 £2,062 £4,901 £3,725 £675 £74,315 Ik) Income from Investment Properties £13,415 was received ill rent from Newbridge Joinery who lease the Newbri¢Jge Old H811 Of thi5. £7.415 was overdue rent Iitsm previous years. £320 was received in rent frorn Alcoholic5 Anonymws who used Panteg chapel for weekly meetings. 11) Gainsl(losses) on investment properties Thè realisat￿rn of £77.715 on the Sale of Snatchwood chapel shows as a gain in the Circuit Model Trust balaneèd by a loss In the General Fund comprising £74.532 brought folward fixed asset value and £3.183 01 insur8nce. utility and maintenan￿ costs incurred whilst empty. 4 Payment to Trustees There were no payments made to trustees for additional servI￿S provided to the Circuit by agreement wth the Circuit Meeting. This excludes stipends. Trustee expenses were.. 2021122 2020121 18 14 £18,814 £14,816 Expense payments primarily relate lo reimbursement for travel, postsge, stslionery and computing costs. Number of Trustees Total amount Prepared by.. Ken Bailey, Circuit Treasurer Il, March 2023 Page2of5 S Fees for examination or audit of the accounts 2021122 2020121 Independent examiner's or auditors, fees for reporting on the accounts Other fees leg.. advice, accountancy services) paid to the independent examiner or auditor 300 275 NIL NIL 6 Paid employees (excluding stipendiary ministers, costs of £187,676) Staff Costs paid during the year: Gross wages, salaries and benefits in kind Employer's National Insuran￿ costs Pension coslslsncluding £600 pension scheme set-up feel Total staff costs 2021122 2020121 13.112 3.146 554 1,369 15,034 3.146 Average number of full-tirne equivalent employees in the year (rounded to nearest whole number).. 7 Capital Commitrnents and Contingent Liabilities There were no capital commitments at 31$1 August 2022 No Conlingenl liabilitie5 were Identified al 31 St August 2022 8 For information only Money received passed on to External O 2021122 anisations 2020121 Balancg brought fop•vard from last year 2,165 5,280 OfferingslGifts - received for External Organisalions 3.175 3,140 OfferingslGifts - passed to External Organisalions -1,615 -6,255 Balance carried foThvard 3,725 2,165 Prepared by.. Ken Bailey, Circuit Treasurer Il" March 2023 Page3of5 9 Tangible Fixed Assets Cost or valuation Flxtures, fittings and equipment Payments on account and assets under construction Other buildings Land Manses Total Balance brou hl forward 1,207,270 74,523 1,281,793 Additions 157,000 2,034 159034 Revaluations 32,800 32,800 Dis osals -74,523 -74,523 Transfers ' Balance carried forward 1,240,070 157,000 1 399,704 Accumulated depreciation Balance brou ht forward Depreciation charge for ear -339 -339 Revalualitsns Dis osals Transfers" Balan￿ carried forward -339 -339 Net book value Brou hl forward 1,207,270 74,523 1,281,793 Carried lo￿ard 1,240,070 157,000 1,695 1,398.765 Manses.. Theie has been no change lo the manse estate during the year. The valuation of Abergavenny has been Increased by £28 8k and Pontllanfraith by £4k during the year reflecting improvement works undertaken. Valuations have been compared with online sources and as at August 2022 the lower bound of expected sale value is £1,706k. Other buildings: Snalchwood Chapel was sold on 0310912021 realising £74,523 after expenses and Connexional levy. The circuit look on responsibi11ty for Abertillery (Powell Slreell, Panleg, Pontypool and Trinanl chapels during the year. See note 3lgl for further detail. Prepared by- Ken Bailey, Circuit Treasurer Il" March 2023 Page4of5 10 Investment assets Snatehwood Chapel was sold during the year. The circuit look on responsibility for Abertillery (Powell Street), Panteg, Pontypool and Trinanl chapels during the year. See note 3191 for further detail. The circuit has no common investment fund holdings 11 Loans At 3151 August 2021 the Circuit was not in ￿CeIpt of any loans and has no outstanding loans to others. The same was the ¢a5e al 31st August 2022. 12 Analysis of restricted and designated funds 2021-22 Restrlcted Fund Name Openlng Balance Incoming Resources Resourees Expended Transfers Closing Balance Purpose of the fund Fund for Youth Work Reslricled Varteg Donations Reslricled Varteg Reserve IDesignatedl 12,966 2,353 10,612 Youth work Inole 100 100 Upkeep of Varteg Cemete Future major repairs to Varteg Cemete note 2 100,000 912 99,088 Totals 112,966 100 3,365 109,700 Notes.. 1. The CFB3 account was inherited from the old Iswn Circuit and is a ￿$tricted fund. Circuit Meeting minute 5.1 lal of 1810312021 refers. 2. The Trustees decided lo reserve £1 Ook against likely future major maintenance expenditure at Varteg Cemetery. Circuit Meeting minute 5.1.2 of 1010912020 refers. Comparative analysis of restricted and designated funds 2021-2021 Restricted Fund Name Opening Balance Incoming Resources Resources Expended Transfers Closing Balance Purpose of the fund Fund for Youth Work Reslricled Varteg Donations Reslricled Varteg Reserve IDe51gnaledl 12,966 12,966 Youth work 500 500 Upkeep of Varteg Cemete Future major repairs to Varteg Cemete 100,000 100,000 Totals 500 500 112,966 112.966 Prepared by.. Ken Bailey, Circuit Treasurer Il" March 2023 Page Sof5 CIRCUIT ACCRUAL ACCOUNTS THE METHODIST CHURCH STANDARD FORM OF ACCOUNTS Gwent Hills & Vales Circurt FOR THE YEAR ENDED 31 AUGUST 2022 Wales S nod District Circuit no 2113 Registered Charity - Charlty Registratlon number 1140255 If not a registered charity Her Majesty's Revenue and Customs Gift Aid number (The HMRC number is equivalent lo a registered charity number in terms of eviden￿ of charitable status and may be used lo give lo donors or grant funders wishing lo see evidence of the organisalion's charitable status. Melhodisl charities in England and Wales that are not registered charities are excepted from registration under Slatulory Instrument 2014 No.2421 Ministers.. Rev S Lawler Rev G Edwards Rev S Boxall Rev A Sims Rev P Donnison Circuit Stewards.. Miss J Evans Mrs J Jackson Mrs S Millar Mrs R Rirnmer Mrs G Timm Miss M Webber Mrs C While Treasurer". Mr K Baile Pagelof4 ¢J f4 v O) IÈ) r ro Irj Lf) r *n ￿ o 0)m￿0 (4 (£1 o 10 o c4 ts) in c o o L>Q C C0 r Pl In (n ID ￿(0 W CTJ- f*4 ty) o) rq 10 Ill r JVP 17) (o o ¢fj o tr u> ) ￿1 tt c UCJ C C VAT Since the Circuit is not VAT registered. all input VAT 15 charged wrth the expenses to which it refers. {fj Tangible fixed assets for use by the Circuit Tangible fixed assets are c2pita1i5ed Il they can be used lor more than one year and cost at least £500. A printer for the Circuit Office w8s purchased foi £2.034 during the year. It is being depreaaled over 36 months. The freehold property 15 shown in the aGwunts at 2022 deemed values, ol which the land component of Manse5 v8lue is deemed to be £250.000. No depreciation is provided on the buildings because the trustees consider the current residual lair value of the manse buildings lon the assumption that it had reached the end of its useful economic life by the ye8r- endl lo be not less than its current value. Any depieciation would not be material. The properties have been reviewed for impairrnent. Igl Investment Properties Snatchwood Chapel became unused during 2020-21 further to the Circurt Trustee$ 8greÈing that the church cease to meet IminLJie 10121105120201. It was sold on 0310912021 realising £92,144 after marketing and lègal expenses. After deduction of Connexional levy1£14,4291 and insurance. utility and maintenance expenses1£3,1921 the net proceeds were £74,523. Newbridge Chapel became unused during the current year further to the Circuit Trustees agreeing that the church cease to meet (minute 4.10109109120211. The Trustees approved the sale ol the property Iminule 6.2.1 of 17103r20221. The sale Is expected to be completed in 2023. The chapel is shown as a Capital Re￿Ipt of £72k in the current yeai, being the Qualified Surveyor's Report valuation £120k less Connectional Levy 01228k and forecast expenses of £20k. Abertillery Chapel became unused duTing the curTenl year further to the Circuit Trustees agreeing that the church cease to meet Iminute 5.1 of 17103120221. The Trustees appioved the sale of the property (minute 6.2.2 of 17103120221. The property has not yel been valued and is expected to be sold in 2023. The anticipated Capital Receipt will be shown in the 2022-23 accounts. Prepared by.. Ken Bailey, Circuit Treasurer Il" March 2023 Pagelof5 Pontypool Chapel became unused during the current year fijrther to the Cirwit Truslees ￿leeing that the churth cease lo meet Iminute 5.2 0117103r20221. The Trustees had not yet approved the disposal of the propety at the end of the year. As the land is leasehold little or no capital is expected to be realised so no Caprtal Receipt h8s been recorded. Panteg Chapel became unused during the current year. The chapel is shown as a Capital Receipt of £85k in the current year. being the Qualified Surveyor's Report valuation £125k less Connectional Leyy of £30k and forecast expenses ol £10k. The Circuit Trustees are expected to agree that the church cease to meet and the sale of the property al their meeting of 17103r2023. The property is expected to be sold in 2023 Trinant Chapel became unused during the current year further to the Circuit Tru8tees agreeing that the church cease to Fneel lrninute 5.1 of 09106120221. The property has not yet been valued and is expe¢ted to be sold in 2023. The anlicipaled Capital Receipt will be shown in the 2022-23 accounts. All other ro rties are held for the long-tem) pijrptsses of the tharity. {hl Investrnents Investments are valued in the balance sheet al market value at the year end. Investment incorne is included in Ihe accounts when receivable and any gains or losses on revaluation at the yearond are shown in thè SOFA. (i) Debtors Debtors comprise8'. Prepayment of September 2022 stipends in August 2022.. Late refund ol a sick minister's stipends lor July and August 2021". Insurance. utility, and essential maintenancè costs of closed Chapels to be lunded frorr pr￿ed5 of sale.. Late payment of assessments". Total £15,671 £5,881 £13,821 £5,702 £41,076 ti) Creditors Credittsrs comprises.. 1 st quarter 2021122 assessment received trom most churches in August 2021.. Propety maintenance.. Mini5t81 and preacher expenses dairned after year end.. Collections for others.. Other Sundry expenses.. Total £62,952 £2,062 £4,901 £3,725 £675 £74,315 Ik) Income from Investment Properties £13,415 was received ill rent from Newbridge Joinery who lease the Newbri¢Jge Old H811 Of thi5. £7.415 was overdue rent Iitsm previous years. £320 was received in rent frorn Alcoholic5 Anonymws who used Panteg chapel for weekly meetings. 11) Gainsl(losses) on investment properties Thè realisat￿rn of £77.715 on the Sale of Snatchwood chapel shows as a gain in the Circuit Model Trust balaneèd by a loss In the General Fund comprising £74.532 brought folward fixed asset value and £3.183 01 insur8nce. utility and maintenan￿ costs incurred whilst empty. 4 Payment to Trustees There were no payments made to trustees for additional servI￿S provided to the Circuit by agreement wth the Circuit Meeting. This excludes stipends. Trustee expenses were.. 2021122 2020121 18 14 £18,814 £14,816 Expense payments primarily relate lo reimbursement for travel, postsge, stslionery and computing costs. Number of Trustees Total amount Prepared by.. Ken Bailey, Circuit Treasurer Il, March 2023 Page2of5 S Fees for examination or audit of the accounts 2021122 2020121 Independent examiner's or auditors, fees for reporting on the accounts Other fees leg.. advice, accountancy services) paid to the independent examiner or auditor 300 275 NIL NIL 6 Paid employees (excluding stipendiary ministers, costs of £187,676) Staff Costs paid during the year: Gross wages, salaries and benefits in kind Employer's National Insuran￿ costs Pension coslslsncluding £600 pension scheme set-up feel Total staff costs 2021122 2020121 13.112 3.146 554 1,369 15,034 3.146 Average number of full-tirne equivalent employees in the year (rounded to nearest whole number).. 7 Capital Commitrnents and Contingent Liabilities There were no capital commitments at 31$1 August 2022 No Conlingenl liabilitie5 were Identified al 31 St August 2022 8 For information only Money received passed on to External O 2021122 anisations 2020121 Balancg brought fop•vard from last year 2,165 5,280 OfferingslGifts - received for External Organisalions 3.175 3,140 OfferingslGifts - passed to External Organisalions -1,615 -6,255 Balance carried foThvard 3,725 2,165 Prepared by.. Ken Bailey, Circuit Treasurer Il" March 2023 Page3of5 9 Tangible Fixed Assets Cost or valuation Flxtures, fittings and equipment Payments on account and assets under construction Other buildings Land Manses Total Balance brou hl forward 1,207,270 74,523 1,281,793 Additions 157,000 2,034 159034 Revaluations 32,800 32,800 Dis osals -74,523 -74,523 Transfers ' Balance carried forward 1,240,070 157,000 1 399,704 Accumulated depreciation Balance brou ht forward Depreciation charge for ear -339 -339 Revalualitsns Dis osals Transfers" Balan￿ carried forward -339 -339 Net book value Brou hl forward 1,207,270 74,523 1,281,793 Carried lo￿ard 1,240,070 157,000 1,695 1,398.765 Manses.. Theie has been no change lo the manse estate during the year. The valuation of Abergavenny has been Increased by £28 8k and Pontllanfraith by £4k during the year reflecting improvement works undertaken. Valuations have been compared with online sources and as at August 2022 the lower bound of expected sale value is £1,706k. Other buildings: Snalchwood Chapel was sold on 0310912021 realising £74,523 after expenses and Connexional levy. The circuit look on responsibi11ty for Abertillery (Powell Slreell, Panleg, Pontypool and Trinanl chapels during the year. See note 3lgl for further detail. Prepared by- Ken Bailey, Circuit Treasurer Il" March 2023 Page4of5 10 Investment assets Snatehwood Chapel was sold during the year. The circuit look on responsibility for Abertillery (Powell Street), Panteg, Pontypool and Trinanl chapels during the year. See note 3191 for further detail. The circuit has no common investment fund holdings 11 Loans At 3151 August 2021 the Circuit was not in ￿CeIpt of any loans and has no outstanding loans to others. The same was the ¢a5e al 31st August 2022. 12 Analysis of restricted and designated funds 2021-22 Restrlcted Fund Name Openlng Balance Incoming Resources Resourees Expended Transfers Closing Balance Purpose of the fund Fund for Youth Work Reslricled Varteg Donations Reslricled Varteg Reserve IDesignatedl 12,966 2,353 10,612 Youth work Inole 100 100 Upkeep of Varteg Cemete Future major repairs to Varteg Cemete note 2 100,000 912 99,088 Totals 112,966 100 3,365 109,700 Notes.. 1. The CFB3 account was inherited from the old Iswn Circuit and is a ￿$tricted fund. Circuit Meeting minute 5.1 lal of 1810312021 refers. 2. The Trustees decided lo reserve £1 Ook against likely future major maintenance expenditure at Varteg Cemetery. Circuit Meeting minute 5.1.2 of 1010912020 refers. Comparative analysis of restricted and designated funds 2021-2021 Restricted Fund Name Opening Balance Incoming Resources Resources Expended Transfers Closing Balance Purpose of the fund Fund for Youth Work Reslricled Varteg Donations Reslricled Varteg Reserve IDe51gnaledl 12,966 12,966 Youth work 500 500 Upkeep of Varteg Cemete Future major repairs to Varteg Cemete 100,000 100,000 Totals 500 500 112,966 112.966 Prepared by.. Ken Bailey, Circuit Treasurer Il" March 2023 Page Sof5