## **ST AUSTELL METHODIST CIRCUIT**
**Registered Charity No. 1141712**
## **Trustees' Annual Report: 1 September 2020 - 31 August 2021**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
**Charity name** St Austell Methodist Circuit **Registered charity number:** 1141712
## **Structure:**
The St Austell Circuit is part of the Cornwall District, and is accountable to the Methodist Conference. The Circuit functions in accordance with the Constitution, Practice and Discipline (CPD) of the Methodist Church, known often as The Connexion.
## **Names of the charity trustees:**
The number of trustees fluctuates during the year depending on changes in office holders in the chapels and Circuit. There was an average of 85 trustees listed on the Charity Commission website during this year. They are appointed by local churches and existing trustees; Ministers are automatically trustees. In accordance with the CPD of the Methodist Church, the Chair was Rev Stephen Caddick, the Superintendent Minister of the Circuit (until 31[st] August, 2021), who came to the Circuit on 1 September 2016. Rev Paul Benney became Superintendent Minister of the Circuit on 1[st] September, 2021.
## **Names and addresses of advisers:**
Legal – Stephens Scown, 1 High Cross Street, St Austell PL25 4AX Financial – Phillips Frith, 9 Tregarne Terrace, St Austell PL25 4DD Independent Examiner – Amy Sole FCA of Phillips Frith LLP Investment Bankers – Trustees for Methodist Church Purposes Estate Agents – May Whetter & Grose, Piran House, 11 Fore Street, St Austell, PL25 5PX
## **Description of the charity’s trusts:**
Type of governing document: Deed of Union (1932) and Methodist Church Act (1976)
## **Management:**
Circuit trustees meet four times each year (the Circuit Meeting), and a Circuit Leadership Team (CLT) consisting of the Circuit stewards and staff meets between the trustee meetings. There is also a Property Committee, which oversees the management of property in the Circuit, and is responsible to the CLT and Circuit Meeting. The day to day management of the Circuit is undertaken by the CLT.
## **Circuit Administrator:**
Debbie Eade, 7 Eastbourne Road, St Austell PL25 4SZ
## **Induction/Training:**
A range of guidance is produced by Methodist Connexion and provided as required. The leaflet ‘The Role of a Trustee in The Methodist Church’ has been given to each trustee. All trustees who are required have undertaken Creating Safer Space Foundation Module training, and many have done the Leadership module. This training is ongoing. Many trustees have also undergone DBS checks for work they do within the churches of the Circuit. A new programme of Safeguarding updates is about to be put into place.
1
## **Risks:**
A formal risk assessment for the Circuit has not been undertaken, as the Circuit operates as part of the legal structure of the Methodist Church of Great Britain. Any specific risks are considered by the CLT, who take professional advice as required.
## **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, 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
- 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 St Austell Methodist Circuit commits itself to ensuring the implementation of Connexional Safeguarding Policy; government legislation, guidance and safe practice in the Circuit and in the churches.
The St Austell Methodist Circuit commits itself to the provision of support, advice and training for lay and ordained people that will ensure people are clear and confident about their roles and responsibilities in safeguarding and promoting the welfare of children and adults who may be vulnerable.
## **OBJECTIVES AND ACTIVITIES**
## **Summary of the objects of the charity set out in its governing document:**
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;
2
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.
**Summary of the main activities undertaken for the public benefit in relation to these objects** :
- The trustees have had regard to the guidance issued by the Charity Commission on public benefit.
- The Circuit produces a quarterly preaching plan to ensure regular acts of worship take place at each of the 20 Methodist Churches in its geographical area. These are open to all. However, due to Covid 19, churches closed voluntarily in November 2020 and from January to March 2021. Most reopened again at the beginning of April 2021.
- The Circuit is also directly involved with leading worship at the local hospice, Age UK Day care centre and other venues as invited. These include conducting numerous funeral services at local crematoria as well as at churches (a smaller number this year due to Covid 19 restrictions), baptisms and weddings. The number of these was reduced due to Covid 19 and statistics are not available.
## **ACHIEVEMENTS AND PERFORMANCE**
- a) Circuit Policy Document – a Circuit mission statement and mission strategy began operating in 2013, and many local churches revised their strategy to bring it into line with that of the Circuit. The strategy has brought a better financial balance to the Circuit, and enabled the appointment, of a number of lay workers – pastoral assistants and Children and Families worker.
- b) A review of the Circuit Mission Statement and Strategy was carried out in 2019 onwards which will inform decisions about stationing and staff from 2021. Many meetings and consultations with members of the Circuit have continued to take place online, and a new Mission Statement and Strategy was agreed at the September 2020 Circuit Meeting.
- c) In the calendar years 2020 and 2021 total adult attendances at the main services on Sundays were not measured due to the lockdowns caused by Covid 19. The Methodist Connexion did not collect statistics for that year.
- d) The project for renovation of the hall at Bugle is ongoing. Work with young people at Bugle continues to be very successful but further grant applications to complete the work to the hall had been rejected for various reasons. A request to the Circuit for a grant of £100,000, linked to the sale of the Churchtown Meadows manse, was approved in June 2021.
- e) A further project for renovation at Tywardreath is being prepared.
- f) Churches in the Circuit work with various ecumenical groups such as Churches Together in St Austell, Par, Mevagissey and Roche. Churches Together in St Dennis has now been formed.
- g) Circuit activity was adversely impacted by Covid 19 and we look forward to getting back to normal in 2022.
## **FINANCIAL REVIEW**
## See “Annual Accounts and Reserves Policy 2020-21” on following pages.
The Circuit Leadership Team has drawn up a set of recommendations, which have been accepted by the Circuit Meeting, to ensure grants made from the Circuit Model Trust Fund are used effectively for mission and capital works. Grants and loans amounting to approximately £100,000 (£50,000 last year) were approved for supporting the staff and churches in the Circuit with property schemes. Also £55,649 was paid to the District and Connexion in the form of assessments and levy (£55,199 last year). The churches of the Circuit hold other trust funds.
3
## **Brief statement of the charity’s policy on reserves:**
The Reserves Policy for the St Austell Circuit is to hold a sum equivalent to 6 months’ average expenditure. This should be sufficient to meet any unforeseen item of major expenditure on manses and/or to be able to continue, in the short term, funding planned activities in the event of the closure of a large church or an inability to raise the full Circuit Assessment from churches. As part of our forward planning, expenditure forecasts are prepared looking 2 years ahead. It is necessary to hold sufficient working capital to enable the quarterly payment of stipends and business expenses for 3 ministers and various lay staff, and our contribution to the District. For further details see the following annual report and reserves Policy.
**Details of any funds materially in deficit:** There are none.
4
## **ANNUAL ACCOUNTS AND RESERVES POLICY 2020-21**
This document includes all funds held by the Circuit Meeting as trustees of the St Austell Methodist Circuit charity, charity number 1141712.
## **1. Aims**
The aim of the Circuit is twofold:
1. To secure the Circuit’s viability and future work
2. To give reassurance to the general public that the Circuit intends to use all of its resources for the purpose of the Charity
## **2. Mission Policy**
The Circuit’s Mission Statement is set out in a document accepted by the Circuit Meeting in March 2019, accompanied by a Circuit Mission Strategy, currently under review. Essentially it provides for
a] Ministerial oversight and pastoral care of the 20 churches in the Circuit
b] the support of a Ministry team of 3 presbyter Ministers and 5 part-time lay workers
c] the maintenance of 6 Circuit manses
This policy has been modified due to the impact of Covid 19 and change of staff.
## **3. Financial Review**
## **a) Unrestricted income**
The Circuit assessment is reviewed annually and is intended to cover the cost of the policy above; the assessment is based on proportionate church membership and attendance. Total general fund unrestricted incoming resources totalled £258,914 (2020: £207,706) and outgoings totalling £268,339 (2020: £271,290), with a deficit over the year of £9,425 (2020: £63,584).
We normally make provision for our property maintenance programme by designating up to £20,000 per annum.
The Circuit funds (unrestricted general funds) balance at 31 August 2021 was £1,186,571 (2020: £1,335,996). Almost all of the balance is the value of the manses.
Under Standing Orders, the Circuit must meet its financial obligations in relation to the support of its Ministers and the maintenance of its manses, the total cost of these obligations last year was £ 126,029 (£2020: £128,676).
The audited Standard Form of Accounts, the statement of account for the Circuit, the Youth account and the Children’s Work accounts are available for inspection at the Circuit Meetings and at any other time by appointment.
5
## **b) The Circuit Trust Fund**
The Circuit Trust Fund (CTF - formerly known as the Advance Fund) No. 9941 is the main fund with a balance at the year end of £366,610 (£225,342: 2020). The reserve fund (9941A) held £35,680 (£35,561: 2020).
This fund derives from the sale of chapels and manses and is restricted by Conference. This restriction is an internal regulation although the fund can be used for a variety of purposes.
The Circuit also holds other trust funds which amounted to £42,391 at the year end (£41,497: 2020). The total of all the trust funds was £468,643 (£302,400: 2020).
The Charity Commission has agreed that it is appropriate for the Trustees to set a policy for the management of the CTF, and this is set as follows: Money held in the Circuit Trust Fund has been ear marked by the Trustees for the following purposes:
- £30,000 for District Advance Fund levy [to be confirmed]
- £100,000 Request from Bugle Methodist Church for a grant.
Total £110,000, with any remaining balance in hand to be held as a general contingency reserve.
The reports and reserves policy was agreed by the St Austell Methodist Circuit Trustees meeting on 10 March 2022
## _Signed: ………………………………………………………._
Rev Paul Benney, Chair (from 1[st] September 2021)
On behalf of the St Austell Methodist Circuit
6
St Austell Methodist Circuit Circuit No. 1141712
## **Statement of Financial Activities (SOFA) for the year ended 31 August 2021**
|**Notes**
**Income**
Capital receipt
4
Donations and legacies
Income from monetary investments
Assessments on Churches
Grants received
Other charitable income
5
**Total income**
**Expenditure**
Grants and donations
6
Salaries and associated stipend costs
7
Property maintenance and rental
expenses
Connexional assessment and model
trust levy
District assessment and levy
Depreciation
Office expenses
Redundant chapel costs
Other outgoings
10
**Total charitable expenditure**
Net income/(expenditure) before
investment gains/losses
Gains/(losses) on monetary investments
Net gain on property disposal
**Net income/(expenditure)**
Reclassification of funds
**Net movement in funds**
Total funds brought forward
**Total funds carried forward**|**General**
**Fund**
**(unrestricted)**
**Circuit Model**
**Trust**
**(unrestricted)**
**Restricted**
**Funds**
**Total**
**2020-21**
£
£
£
£
-
173,815
-
173,815
-
-
-
-
38
989
-
1,027
226,481
-
-
226,481
1,672
-
-
1,672
30,723
-
-
30,723|
|---|---|
||258,914
174,804
-
433,718|
||1,388
-
-
1,388
149,460
-
-
149,460
7,381
-
-
7,381
43,940
8,767
-
52,707
11,304
-
-
11,304
201
-
-
201
12,105
-
-
12,105
17,324
-
-
17,324
25,236
568
131
25,935|
||268,339
9,335
131
277,805|
||(9,425)
165,469
(131)
155,913
-
773
-
773
116,359
-
-
116,359|
||106,934
166,242
(131)
273,045
(256,359)
-
-
(256,359)|
||(149,425)
166,242
(131)
16,686|
||1,335,996
309,915
2,639
1,648,550
1,186,571
476,157
2,508
1,665,236|
St Austell Methodist Circuit Circuit No. 1141712
## **Statement of Financial Activities (SOFA) for the year ended 31 August 2020**
|**Notes**
**Income**
Donations and legacies
Income from monetary investments
Assessments on Churches
Grants received
Other charitable income
5
**Total income**
**Expenditure**
Grants and donations
6
Salaries and associated stipend costs
7
Property maintenance and rental
expenses
Connexional assessment and model
trust levy
District assessment and levy
Depreciation
Office expenses
Redundant chapel costs
Other outgoings
10
**Total charitable expenditure**
Net income/(expenditure) before
investment gains/losses
Gains/(losses) on monetary investments
**Net income/(expenditure)**
Transfers between funds
**Net movement in funds**
Total funds brought forward
**Total funds carried forward**|**General**
**Fund**
**(unrestricted)**
**Circuit Model**
**Trust**
**(unrestricted)**
**Restricted**
**Funds**
**Total**
**2019-20**
£
£
£
£
-
-
-
-
217
3,182
-
3,399
180,756
-
-
180,756
-
-
1,200
1,200
26,733
-
-
26,733|
|---|---|
||207,706
3,182
1,200
212,088|
||1,950
-
-
1,950
149,217
-
-
149,217
11,327
-
-
11,327
41,976
16,749
-
58,725
10,748
-
-
10,748
201
-
-
201
7,659
-
-
7,659
17,835
-
-
17,835
30,377
833
281
31,491|
||271,290
17,582
281
289,153|
||(63,584)
(14,400)
919
(77,065)
-
(76)
-
(76)|
||(63,584)
(14,476)
919
(77,141)
50,000
(50,000)
-
-|
||(13,584)
(64,476)
919
(77,141)|
||1,349,580
374,391
1,720
1,725,691
1,335,996
309,915
2,639
1,648,550|
St Austell Methodist Circuit Circuit No. 1141712
## **Balance Sheet as at 31 August 2021**
||**Notes**|**General Funds**|**Circuit Model**|**Restricted**|**Total**|**Total**|
|---|---|---|---|---|---|---|
|||**(unrestricted)**|**Trusts**|**Funds**|**2021**|**2020**|
||||**(unrestricted)**||||
|||£|£|£|£|£|
|**Fixed Assets**|||||||
|Circuit manses and equipment|12|1,085,860|17,500|-|1,103,360|1,243,561|
|Investments properties|12|80,000|-|-|80,000|80,000|
|Investment|13/14|-|4,986|-|4,986|4,213|
|**Total fixed assets**||1,165,860|22,486|-|1,188,346|1,327,774|
|**Current Assets**|||||||
|Debtors|15|11,535|-|-|11,535|19,944|
|Loans by the Circuit||-|-|-|-|6,500|
|Investments with TMCP|13/14|-|463,656|-|463,656|298,187|
|Central Finance Board Deposits||10,631|-|-|10,631|50,426|
|Cash at bank and in hand||44,751|-|2,508|47,259|18,145|
|**Total current assets**||66,917|463,656|2,508|533,081|393,202|
|**Current liabilities**|||||||
|Creditors (due in under 1 year)|16|46,206|9,985|-|56,191|72,425|
|**Total current liabilities**||46,206|9,985|-|56,191|72,425|
|**Net current assets**||20,711|453,671|2,508|476,890|320,777|
|**Net assets**||1,186,571|476,157|2,508|1,665,236|1,648,551|
|**Funds of the Circuit**|||||||
|General Fund (unrestricted)|17|1,186,571|-|-|1,186,571|1,335,997|
|Circuit Model Trust Fund|||||||
|(unrestricted)|17|-|476,157|-|476,157|309,915|
|**Total Unrestricted Funds**||1,186,571|476,157|-|1,662,728|1,645,912|
|Restricted Funds|18|-|-|2,508|2,508|2,639|
|**Total Funds**||1,186,571|476,157|2,508|1,665,236|1,648,551|
Approved by the board of trustees on……………………………… signed and authorised for issue on the: ………………………..
………………………………………………………………..
Rev Paul Benney
St Austell Methodist Circuit Circuit No. 1141712
## **Notes to the Accounts**
## **1 Basis of accounting**
The financial statements have been prepared under the Charities Act 2011 and in accordance with the 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 (FRS102) (as amended for accounting periods commencing from 1 January 2016) – the Charities SORP (FRS102) and taking note of the Update Bulletin 1 issued in 2016.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for Charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The Circuit meets the definition of a public benefit entity under FRS 102.
The Circuit has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flow.
Based on the monetary assets and human resources available at the year end, the trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern. Whilst Covid 19 has continued to have a social impact the Charity remains operational, generating increased income and retaining sufficient funds.
The Circuit has denominational regulatory oversight in respect of the work of the churches within the Circuit but has no legal or operational control of those churches and their governing bodies. For this reason, the financial statements of churches within the Circuit are not consolidated into these statements.
## **2 Funds**
The funds held constitute:
- General Funds held for any purpose of the Circuit which are Unrestricted.
- The Circuit Model Trust Fund has wide purposes defined in Standing Orders and is categorised as unrestricted.
- Restricted funds which are held for a narrower purpose.
There are no Endowment funds. Details of each material fund are disclosed in notes 18 and 19 to these accounts. Any funds may be represented by more than just cash.
## **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. The accruals basis has been used and the trustees present accounts that show a true and fair view of the Circuit’s financial position and activities.
The accounts are expressed in £ Sterling, rounded to the nearest pound.
## **Incoming Resources**
Income is included in the Statement of Financial Activities (SOFA) when the Circuit becomes entitled to the resources, and the trustees are reasonably certain they will receive the resources; and the monetary value can be measured with sufficient reliability.
In accordance with the Charities SORP (FRS 102), the time of volunteers is not recognised. If goods are donated, a value will be shown in the SOFA or notes where the value is considered material.
## **Resources Expended**
This is recognised when a liability is incurred, or a constructive obligation arises, that results in the payment being unavoidable. Liabilities are recognised 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.
St Austell Methodist Circuit Circuit No. 1141712
## **Grants**
Grants made by the Circuit from its own funds are recognised in full at the time of agreement to make a grant without performance conditions or as and when the Circuit accepts that there is a legal or operational obligation to make the payment.
## **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**
Tangible fixed assets are capitalised if they can be used for more than one year, and cost at least £1,000. The freehold property is shown in the accounts at deemed historical cost representing each property’s gross carrying value at 1 September 2015. No depreciation is provided on the building because the trustees consider the current residual fair value of the manse buildings (on the assumption that it had reached the end of its useful economic life by the year-end) to be not less than its current value. Any depreciation would not be material. The property has been reviewed for impairment.
Depreciation is provided on fixtures, fittings and equipment at a rate of 25% on the reducing balance method, calculated to write off the cost over their expected economic life.
## **Investment Properties**
From time to time the Circuit may be required to assume responsibility for church premises following closure and cessation of worship. This results in the Circuit becoming Managing Trustees for the property. At that time the property is recognised as an asset at its anticipated net sale price as determined by a professional valuation and after taking into consideration the levy to be charged by the Connexion. Any expenditure on such assets, if held for reinvestment of the proceeds, as the trustees determine, that is likely to enhance sale value is capitalised at the time the expenditure is incurred. There is only one property currently deemed to not be held for the long term purposes of the charity.
## **Investments**
The Circuit’s investments are in monetary assets classified as basic financial instruments under FRS 102. Investments are valued in the balance sheet at market value at the year end, which are provided by TMCP. 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. All cash balances are shown in cash and short term deposits.
## **Debtors and Prepayments**
Debtors are stated at the amounts owed to the Circuit or prepaid. They mainly include prepaid stipends.
## **Financial Instruments**
The Circuit 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.
## **Creditors**
Creditors are initially recognised at settlement amount after any trade discounts. Creditors include both sundry expenses and specifically the 1st quarter assessment received in August for the following financial year.
## **Pensions**
The Circuit operates a defined contribution scheme for the benefit of its employees. Contributions are charged to the Statement of Financial Activities in the period they are payable.
St Austell Methodist Circuit Circuit No. 1141712
## **4 Capital receipts**
|General
£
Sale proceeds (manse)
-
CPF Levy on property sales
-
**Total**
-
**5 Other charitable income**
General
£
Letting income
27,947
Liturgical fees
2,760
Photocopying
-
Other income
16
**Total**
30,723
**6 Analysis of grant expenditure**
General
£
Local Methodist churches
-
Local support groups
1,200
Sacred Trust
188
Donations
-
**Total**
1,388|CMTF
£
256,359
(82,544)
173,815
CMTF
£
-
-
-
-
-
CMTF
£
-
-
-
-
-|Restricted
£
-
-
-
Restricted
£
-
-
-
-
-
Restricted
£
-
-
-
-
-|Total
2020/21
£
256,359
(82,544)
173,815
Total
2020/21
£
27,947
2,760
-
16
30,723
Total
2020/21
£
-
1,200
188
-
1,388|Total
2019/20
£
-
-
-
Total
2019/20
£
22,785
3,319
619
10|
|---|---|---|---|---|
|||||26,733|
|||||Total
2019/20
£
-
1,200
750
-
1,950|
Grants were made to local Methodist churches to help fund the cost of repairs, equipment and training.
## **7 Paid employees**
|**Staff Costs paid during the year were:**
Gross wages, salaries and benefits in kind
Pension costs
Total staff costs
**Average number of employees in the year were:**
No employees received employee benefits of more than £60,000.|2020/21
£
26,701
891
27,592
4|2019/20
£
27,521
688|
|---|---|---|
|||28,209|
|||5|
St Austell Methodist Circuit Circuit No. 1141712
## **8 Payment to Trustees**
Payments were made to one trustee (2020: one trustee) for additional services provided to the Circuit (manse and property steward, equipment hire, layworker and consultant) by agreement with the Circuit Meeting. A summary of these payments has been included in note 23.
||**2020/21**|**2019/20**|
|---|---|---|
|Total amount paid|£12,333|£14,778|
|**Trustee expenses**|||
||**2020/21**|**2019/20**|
|Number of Trustees|4|8|
|**Total amount**|£2,602|£7,406|
Expense payments primarily relate to reimbursement for travel, subsistence, postage, stationery and steward’s expenses.
The ministers (who are trustees) are paid stipends and travel expenses at rates agreed annually by the Methodist Conference. Stipends were paid to three ministers amounting to £109,110 in the year (2020: £106,235 for three ministers). Travel costs paid to the ministers amounted to £1,138 (2020: £5,444). These are also included in the amounts paid to Trustees for expenses above. The Manses are provided by the Circuit and the Circuit maintains the property. With the exception of the let manses, the Circuit is responsible for payment of council tax, utilities, water charges and insurance (included in note 10).
Five (2020: Five) trustees were paid remuneration or have received other benefits from an employment with the charity. During the year one employee retired in the year. These payments have been made under authority of the Charity Commission and can be summarised as follows:
|Trustee
Reason for payment
Mrs C Thornton
Layworker
Mrs D Eade
Layworker
Mrs K Reynolds
Layworker
Mrs S Battison
Children’s worker
Mrs C Baines
Layworker|2020/21
Amount
paid
Pension
costs
£
£
4,879
-
9,759
584
5,250
307
1,934
-
4,879
-
26,701
891|2019/20
Amount
paid
Pension
costs
£
£
4,745
-
9,490
568
4,745
120
3,796
-
4,745
-|
|---|---|---|
|||27,521
688|
The members do not take part in any discussion on the terms and conditions of their employment. The members of the CLT, who consists of the ministers, the layworkers, Circuit administrator and the unpaid Circuit stewards are considered as Key Management Personnel. The remuneration paid to them has been disclosed in note 8 above.
St Austell Methodist Circuit Circuit No. 1141712
## **9 Fees for examination or audit of the accounts**
|**s for examination or audit of the accounts**|||
|---|---|---|
|Independent examiner’s or auditors' fees for reporting on the accounts
Other fees (eg: advice, accountancy services) paid to the independent
examiner|2020/21
£
880
3,200|2019/20
£|
||880|820|
||3,200|3,200|
## **10 Other outgoings**
|Travel expenses
Manse insurance and utilities
Removal expenses
Training expenses
Quinquennial inspections
Resource Centre
Professional fees
Insurance
Investment administration
charge
Other expenses
**Total**|General
£
1,265
11,540
-
-
2,338
1,812
4,552
-
-
3,729
25,236|CMTF
£
-
-
-
-
-
-
-
-
568
-
568|Restricted
£
-
-
-
-
-
-
-
-
-
-
-|Total
2020/21
£
1,265
11,540
-
-
2,338
1,812
4,552
-
568
3,729
25,804|Total
2019/20
£
6,694
12,668
-
-
1,985
1,740
3,898
-
833
3,673|
|---|---|---|---|---|---|
||||||31,491|
## **11 Reclassification of funds**
Circuit property is always carried in the General Fund but upon sale the net proceeds are processed through the Circuit Model Trust Fund. This requires an adjustment and such sales during the year are reflected at the gross sale price (less selling costs) in note 4. There was one manse sold in the year end 31[st] August 2021.
St Austell Methodist Circuit Circuit No. 1141712
## **12 Tangible Fixed Assets Cost or valuation**
||**Freehold**
**Manses**|**Fixtures,**
**fittings and**
**equipment**|**Total**||**Investment**
**properties**|
|---|---|---|---|---|---|
||**£**|**£**|**£**||**£**|
|Balance brought forward|1,242,958|28,793|1,271,751||80,000|
|Additions|-|-|-||-|
|Disposals|(140,000)|-|(140,000)||-|
|Balance carriedforward|1,102,958|28,793|1,131,751||80,000|
## **Accumulated depreciation**
|Balance brought forward|-|28,190|28,190||-|
|---|---|---|---|---|---|
|Depreciation charge for year|-|201|201||-|
|Balance carried forward|-|28,391|28,391||-|
|**Net book value**|||1,243,561
1,103,360||
|---|---|---|---|---|
|Brought forward|1,242,958|603|1,243,561|80,000|
|Carriedforward|1,102,958|402|1,103,360|80,000|
The comparable carrying amount of the freehold manses on an historical cost basis would be £709,363 at the year end (2020: £766,363).
## **13 Investment assets**
Investment properties, shown in Note 12, are recognised at their anticipated net sale price as determined by a professional valuation and after taking into consideration the levy to be charged by the connexion.
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, though 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 investments**
Units
CFB Managed Mixed Fund
890
Trustees Interest Fund|2020/21
£
2019/20
£
4,987
4,213
463,656
298,187|
|---|---|
St Austell Methodist Circuit Circuit No. 1141712
## **14 Financial instruments**
|**Carrying amount of financial assets**
Debt instruments measured at amortised cost
Instruments measured at fair value through the SOFA
**Carrying amount of financial liabilities**
Measured at amortised cost
**15 Debtors**
Trade debtors
Prepayments
Stipends
Other prepayments
**Total**
**16 Creditors**
Trade creditors
Accruals
Deferred income
Money due to Carne Hill
**Total**
Deferred income
Balance at 1stSeptember 2020
Deferred in the year
Released in the year
Balance at 31stAugust 2021|2020/21
£
-
468,643
378
2020/21
£
-
11,535
-
11,535
2020/21
£
378
4,080
41,748
9,985
56,191
£
53,981
41,748
(53,981)
41,748|2019/20
£
6,500
302,400|
|---|---|---|
|||4,439|
|||2019/20
£
-
14,460
5,484|
|||19,944|
|||2019/20
£
4,439
4,020
53,981
9,985|
|||72,425|
||||
Deferred income comprises of the 1[st] quarter assessment received in August, which related to the year ended 31[st] August 2022
St Austell Methodist Circuit Circuit No. 1141712
## **17 Analysis of unrestricted 2020-21**
|**Unrestricted**
**Fund Name**|**Opening**
**Balance**|**Incoming**
**Resources**|**Resources**
**Expended**|**Transfers**|**Gains**
**(Losses)**|**Closing**
**Balance**|**Purpose of the**
**fund**|
|---|---|---|---|---|---|---|---|
|||||||||
|General Fund|1,335,996|258,914|(268,339)|(256,359)|116,359|1,186,571|For use in the
furtherance of the
general objectives
ofthe Circuit|
|||||||||
|Circuit Model
TrustFund|309,915|174,804|(9,335)|-|773|476,157|As above|
|Totals||||||||
||1,645,911|433,718|(277,674)|(256,359)|117,132|1,662,728||
## _````Comparative analysis of unrestricted 2019-2020_
|**Unrestricted**
**Fund Name**|**Opening**
**Balance**|**Incoming**
**Resources**|**Resources**
**Expended**|**Transfers**|**Gains**
**(Losses)**|**Closing**
**Balance**|**Purpose of the**
**fund**|
|---|---|---|---|---|---|---|---|
|||||||||
|General Fund|1,349,580|207,706|(271,290)|50,000|-|1,335,996|For use in the
furtherance of the
general objectives
of the Circuit|
|Circuit Model
Trust Fund|374,391|3,182|(17,582)|(50,000)|(76)|309,915|As above|
|Totals||||||||
||1,723,971|210,888|(288,872)|-|(76)|1,645,911||
St Austell Methodist Circuit Circuit No. 1141712
## **18 Analysis of restricted funds 2020-21**
|**Restricted**
**Fund Name**|**Opening**
**Balance**|**Incoming**
**Resources**|
**Resources**
**Expended**|**Transfers**|**Closing**
**Balance**|
**Purpose of the**
**fund**|
|---|---|---|---|---|---|---|
||||||||
|Youth Fund|1,139|-|-|-|1,139|Development and
implementation of
work with young
people in the St
Austell Circuit|
||||||||
|Childrens
Work Fund|1,493|-|131|-|1,362|Development and
implementation of
work with children
in the St Austell
Circuit|
||||||||
|LP|3|-|-|-|3|Development and
training of local
preachers and
worship leaders in
the St Austell
Circuit|
||||||||
|Easter Musical
Account|4|-|-|-|4|Donations
collected to pay for
the Easter musical
and proceeds
donated to
Christian Aid|
|Totals|2,639|-|131|-|2,508||
St Austell Methodist Circuit Circuit No. 1141712
## _````Comparative analysis of restricted and endowment funds 2019-2020_
|**Restricted**
**Fund Name**|**Opening**
**Balance**|**Incoming**
**Resources**|
**Resources**
**Expended**|**Transfers**|**Closing**
**Balance**|
**Purpose of the**
**fund**|
|---|---|---|---|---|---|---|
||||||||
|Youth Fund|1,139|-|-|-|1,139|Development and
implementation of
work with young
people in the St
Austell Circuit|
||||||||
|Childrens
Work Fund|574|1,200|281|-|1,493|Development and
implementation of
work with children
in the St Austell
Circuit|
||||||||
|LP|3|-|-|-|3|Development and
training of local
preachers and
worship leaders in
the St Austell
Circuit|
||||||||
|Easter Musical
Account|4|-|-|-|4|Donations
collected to pay for
the Easter musical
and proceeds
donated to
Christian Aid|
|Totals|1,720|1,200|281|-|2,639||
## **19 Capital commitments and contingent liabilities**
At 31[st] August 2021 there were no capital commitments.
No contingent liabilities were identified at 31[st] August 2021.
## **20 Financial commitments**
At 31[st] August 2019, the Circuit had agreed to assist in funding a project at a church within the Circuit, which could amount to £50,000. £17,500 was paid during the year ended 31[st] August 2020. During the year ended 31 August 2021, the circuit agreed to increase the funding for the project to £100,000.
## **21 Operating lease commitments**
At 31[st] August 2021, the Circuit had outstanding commitments for future minimum lease payments under noncancellable operating leases amounting to £2,158 until October 2023 (2020: £2,878).
The total lease payments included in the expenses were £720 (2020: £720).
St Austell Methodist Circuit Circuit No. 1141712
## **22 Voluntary contributions**
The Circuit is heavily reliant on volunteers who contribute their skills and time in the furtherance of the work of the Circuit. The principal contribution is by serving on committees of the Circuit that deal with mission, manses, finance, grants and safeguarding. We are grateful to all of them for their help and commitment. No attempt has been made by this Circuit to value the non-monetary contributions to the Circuit in monetary terms.
## **23 Related party transactions**
|**This year – 2020/21**
**Name of related party**
**Relationship**
**Description of**
**transaction**
Mr W J Keast
Trustee
Layworker &
consultancy
**Last year – 2019/20**
**Name of related party**
**Relationship**
**Description of**
**transaction**
Mr W J Keast
Trustee
Layworker &
consultancy|**Payments to**
**related party**
**during the year**
**Amounts owed**
**to related**
**party as on 31**
**August 2021**
**£**
**£**
12,733
-|
|---|---|
||**Payments to**
**related party**
**during the year**
**Amounts owed**
**to related**
**party as on 31**
**August 2020**
**£**
**£**
14,778
3,023|
Name of Circuit: ….. _**St Austell Methodist Circuit**_ …………… No… _**1141712**_ ……..
## **Declarations and Scrutiny**
I confirm that these accruals-based accounts for the year to 31 August 2021 have been prepared from the records of the Circuit and that they include all funds under the control of the Circuit meeting.
Signature of treasurer ……………………………………………………… Date……………………..
Name and address of treasurer ………………………………………………………………………….
…………………………………………………………………………………. Post Code………………
## **Presentation to the Circuit meeting**
I confirm that the annual report and accounts for the year ended 31 August 2021 were/will be*
presented to the Circuit meeting held on ……………..
Signature of the Chair of the meeting …………………………………………………………………… Name of the Chair of the meeting …………………………………………… Date ……………………
## **Independent Examiner’s Report to the Trustees of the**
## _**St Austell Methodist Circuit**_
## _**Charity Number 1141712**_
## **Responsibilities and basis of report**
I report to the trustees on my examination of the accounts of the St Austell Methodist Circuit for the year ended 31 August 2021 which include the Statement of Financial Activities, the Balance Sheet and the Notes to the Accounts.
As the Circuit’s trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
My report is made solely to the Circuits trustees, as a body, in accordance with section 154 of the Charities Act 2011. My independent examiners work has been undertaken so that it might state to the Circuits trustees those matters that I am required to state to them in an independent examiners report and for no other purpose. To the fullest extent permitted by law, I do not accept responsibility to anyone other than the Circuit, the Circuits members as a body and the Circuits trustees as a body for my independent examiners work, or this report or for the opinions I have formed.
I report in respect of my examination of the Circuit’s accounts carried out under section 145 of the 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**
The Circuit’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a qualified member of the Institute of Chartered Accountants England and Wales _._
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination (other than that disclosed below*) which give me cause to believe that in, any material respect:
- the accounting records were not kept in accordance with section 130 of the Act; or
- the accounts do not accord with the accounting records; or
- the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair’ view, which is not a matter considered as part of an independent examination
- the trustees’ annual report is not consistent with the accounts.
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.
I have obtained independent verification of all investments with the Trustees for Methodist Church Purposes or held in other trusts, bank balances and funds at the Central Finance Board of the Methodist Church which are individually in excess of £10,000 (ten thousand pounds) at the balance sheet date.
Signature of independent examiner ………………………………………………………………….
Name of independent examiner …… _**Amy Sole FCA**_ ………………………………………………….
Relevant professional qualification of independent examiner … _**Chartered Accountant**_ …
## Name of firm (where appropriate) _**PHILLIPS FRITH LLP**_
## Address _**9 TREGARNE TERRACE, ST AUSTELL, CORNWALL**_
Post Code _**PL25 4DD**_
Date …………………………………………