31[st] August 2021 Southampton Methodist Circuit (26/01) **Southampton Methodist Circuit (26/01)** **Annual Trustees Report For the year ended 31[st] August 2021** **Registered Charity No: 1142521** 1 31[st] August 2021 Southampton Methodist Circuit (26/01) ## **Annual Report 2020/21** **The Trustees present their report along with the financial statements of the Circuit for the year ended 31 August 2021. The financial statements have been prepared in accordance with the accounting policies set out in the accounts and comply with SORP and applicable accounting standards.** ## **Section A: Reference and administration details** **Charity name** SOUTHAMPTON METHODIST CIRCUIT **Registered charity number** 1142521 **Charity's principal address** c/o St James Road Methodist Church St James Road Southampton SO15 5HE **Contact Address held by Charity Commission** c/o 20 Chatsworth Road Bitterne Southampton SO19 7NJ 2 31[st] August 2021 Southampton Methodist Circuit (26/01) ## **Trustees / Members of the Circuit Meeting** Trustees on the date the report was approved are: |**Trustee name**|**Office**|**Dates acted if not**
**for whole of year**
**ending Aug 2021**|**Name of person (or**
**body) entitled to**
**appoint trustee**| |---|---|---|---| |Rev Arthur Cowburn|Presbyter|Resigned 31stAugust
2021|Ex Officio| |Rev John Hughes|Presbyter|Joined 1stSeptember
2021|Ex Officio| |Rev Christine Coram|Presbyter||Ex Officio| |Rev Patricia Davis|Presbyter||Ex Officio| |Rev David Roger Hill|Supernumerary
Minister|Resigned 31stAugust
2021|Ex Officio| |Deacon Carole Smith|Deacon||Ex Officio| |Rev’d Anthony
Parkinson|Supernumerary
Minister||Ex Officio| |Mrs Manosree Chandra|Circuit Secretary||Circuit Meeting| |Mr Mark Tosdevin|Circuit Steward|Resigned 31stMarch
2021|Circuit Meeting| |Mrs Rachel Pearce|Circuit Steward|Resigned 31stMarch
2021|Circuit Meeting| |Mr Eric Gerrey|Circuit Steward in
charge of finance||Circuit Meeting| |Mr Steve Irish|Circuit Steward||Circuit Meeting| |Mr Malcolm Carter|Circuit Steward||Circuit Meeting| |Mrs Debbie Craggs|Circuit Steward||Circuit Meeting| |Mrs Gill Robinson|Circuit Steward||Circuit Meeting| |Mr Graham Fletcher|Circuit Steward||Circuit Meeting| |Mrs Jan Hayter|Circuit Preachers and
Worship Leaders
MeetingSecretary||Circuit Preachers and
Worship Leaders
Meeting| |Mr Neil Hitch|Treasurer, St James
Road Methodist
Church||St James Road
Methodist Church
Council| |Mr Derek Bone|St James Road
Methodist Church
Steward||St James Road
Methodist Church
Council| |Mrs Elizabeth
Woodman|St James Road
Methodist Church
Steward||St James Road
Methodist Church
Council| |Oliver Hack|St James Road
Methodist Church
elected representative||St James Road
Methodist Church
Council| |Mr Russell Hack|St James Road
Methodist Church
elected representative||St James Road
Methodist Church
Council| |Mr Colin Fullbrook|St James Road
Methodist Church
elected representative||St James Road
Methodist Church
Council| |Mr David John
Woodman|St James Road
Methodist Church
elected representative||St James Road
Methodist Church
Council| 3 31[st] August 2021 Southampton Methodist Circuit (26/01) |Mr David Woodbury|Treasurer, Trinity
Local Ecumenical
Partnership||Trinity LEP Church
Council| |---|---|---|---| |Mrs Hazel Irish|Elected Representative,
Trinity Local
Ecumenical Partnership||Trinity LEP Church
Council| |Eileen Woodling|Elected Representative,
Trinity Local
Ecumenical Partnership||Trinity LEP Church
Council| |Mr Stephen Irish|Elected Representative
Trinity Local
Ecumenical Partnership||Trinity LEP Church
Council| |Mr Keith Prentice|Elected Representative
Trinity Local
Ecumenical Partnership||Trinity LEP Church
Council| |Mr Graham Fletcher|Treasurer Hedge End
Methodist Church||Hedge End Methodist
Church| |Mr Irvine Taylor|Hedge End Methodist
Church,Steward||Hedge End Methodist
Church Council| |Mr Michael Bliss|Hedge End Methodist
Church elected
representative||Hedge End Methodist
Church Council| |Miss Diane Judd|Hedge End Methodist
Church elected
representative||Hedge End Methodist
Church Council| |Mr Mark Price|Treasurer, Waterside
Methodist Church||Waterside Methodist
Church Council| |Mrs Lesley Butterfield|Waterside Methodist
Church elected
representative||Waterside Methodist
Church Council| |Mrs Caroline Rose
Ellen|Steward, Woolston
Methodist Church||Woolston Methodist
Church Council| |Mr Andrew Franks|Secretary, Woolston
Methodist Church||Woolston Methodist
Church Council| |Mr Eric Gerrey|Treasurer ,Woolston
Methodist Church||Woolston Methodist
Church Council| |Mr TerryRalph Parriss|MHA Rep||| |Mrs Christina Pritchard|Local Preachers Rep||| |Mrs Jan Warren|||| |Mr Don Skinner|||Circuit Meeting| |Mrs Alison Judd|||Circuit Meeting| |Mr Brian Hooper|Representative on
Circuit Leadership
Team||Circuit Meeting| |Mr Nigel John Bailey|||Circuit Meeting| 4 31[st] August 2021 Southampton Methodist Circuit (26/01) ## **Names of staff members during the year:** ## **Superintendent Minister:** Rev Arthur Cowburn up to 31[st] August 2021 Rev John Hughes from 1[st] September 2021 ## **Presbyters:** Rev Christine Coram Rev Patricia Davis ## **Deacons:** Deacon Carole Smith ## **Names and addresses of advisers:** ## **Bankers:** ## **Day-to-day funds:** HSBC Bank plc 55 Above Bar Street Southampton Hampshire SO14 7DZ Co-operative Bank Co-operative Bank PLC PO Box 101 1 Balloon Street Manchester M60 4EP ## **Investment funds:** Central Finance Board of the Methodist Church 9 Bonhill Street London EC2A 4PE Trustees for Methodist Church Purposes (TMCP) Central Buildings Oldham Street Manchester M1 1JQ 5 31[st] August 2021 Southampton Methodist Circuit (26/01) ## **Independent Examiner:** Chris Goodhead Knight Goodhead Limited 7 Bournemouth Road, Chandler’s Ford, Eastleigh, Hampshire SO53 3DA ## **Solicitors:** Blake Morgan LLP New Kings Court Tollgate Chandlers Ford Eastleigh Hampshire SO53 3LG Barlow Robbins The Oriel Sydenham Road Guildford GU1 3UE Southampton Methodist Circuit does not retain any permanent legal advisers. 6 31[st] August 2021 Southampton Methodist Circuit (26/01) ## **Section B: Structure, Governance and Management** ## **Governance:** ## **Description of the charity’s trusts:** Type of governing document Deed of Union (1932) and Methodist Church Act (1976) How the charity is constituted: Act of Parliament Trustee selection methods Appointed by local churches and existing trustees Ministers are automatically trustees ## **Additional governance issues (Optional information)** ## **Induction/Training:** - ¨ Range of guidance produced by Methodist Connexion. - ¨ Leaflet ‘The Role of a Trustee in The Methodist Church’ given to each trustee. ## **Structure:** - ¨ Part of the Southampton District. - ¨ Accountable to the Methodist Conference. ## **Related Parties:** - ¨ Currently working with Pioneer Group to deliver new methods of Outreach in Southampton ## **Risks:** - ¨ Considered by the Circuit Leadership Team. - ¨ Take professional advice as required. - ¨ Regular review process. - ¨ Adopted Safeguarding training carried out at regular intervals Payments were made to Trustees as detailed in the accounts presented to Circuit and with this report. The Managing Trustees approved total of grants and loans paid over or agreed during 2020/21 as follows: Grants £51,626 Loans £ 0 **Total £51,626** 7 31[st] August 2021 Southampton Methodist Circuit (26/01) ## **Summary of the main activities and achievements from 1 September 2020 to 31 August 2021** **Pioneer Connexion Partnership:** This continues to be a part of our strategy for the future development of the Circuit. We were not successful in the transfer of the property at Swaythling to the Pioneer churches meeting at that location following due legal process in order to support their continuing and valuable work in the community, and subsequently the premises have been sold on the open market to another party. We continue to work together at St Andrews church which is now a thriving community with regular activity during the week and a maturing congregation; we have managed to make this self-financing and self-managed, but due to the pandemic, we have made a loss this year, but, with hope and prayer, this should return to normal activities in the coming year. **Healthy Churches –** The Circuit Leadership team are considering the way forward for the Circuit from 2021 and are having meetings to discuss this with District input. The St James Road New Song Café continues to meet at St James Road currently on a monthly basis and the congregation continues to thrive. The Drinks Ministry continues to be a part of the outreach of the circuit in Southampton at Christmas, Easter, Mothering Sunday and Fathers Day to offer tea and coffee and support to the visiting relatives visiting the Crematorium and the Cemetery on the west side of the city. We are still looking to provide this on the east side as we move forward. The Waterside and Soul Café has continued to thrive in Dibden Purlieu, and serves the local area in many ways. The church at Fawley continues to work in their community to offer support to the homeless and those in need. We support the Street Pastors across the city in all the work that they do. Deacon Carole Smith is continuing her work in the new housing areas of Hedge End looking for ways to increase the outreach of the Hedge End church. She is also working in the community at Woolston where they are exploring growing their faith and also reaching out to their neighbours. **2020 Vision:** In June 2013 the Circuit Meeting voted overwhelmingly to adopt a new policy for the development of our Circuit over the next few years. This document sets out our plans for increased ministry and mission across the Circuit, with a clear aspiration to work towards ensuring the presence of full-time ministry for every church. We are now reviewing this Vision and looking for ways to increase our presence in the City and deliver new options for outreach and working together. 8 31[st] August 2021 Southampton Methodist Circuit (26/01) ## **Public Benefit:** Southampton Methodist Circuit carries out a range of activities in pursuance of its mission. The trustees consider that these activities, summarised below, provide benefit to those who are members of the Circuit through the local Methodist churches and the wider community of Southampton. ## **Religious Activities:** ## **Acts of worship and pastoral care:** The Circuit produces a quarterly preaching plan to ensure regular acts of worship take place at each of the Methodist churches under its remit (St James Road, Trinity LEP, Waterside, Woolston, and Hedge End). These are open to all people, without charge. The Ministers have pastoral care for these churches. ## **Baptisms, Weddings and Funerals:** The Ministers conducted baptisms, weddings and funerals at each of the local Methodist churches in the Circuit. These services are available at the discretion of the Minister. No charge is made for baptisms. A modest set fee is usually charged for weddings and funerals. ## **Section D - People and property** ## **Presbyters, Deacons and Local Preachers:** The Circuit spiritually and financially supported 3 Presbyters, 1 Deacon and 1 part-time Supernumerary Minister throughout the year. We have 22 active Local Preachers and 9 Supernumerary Ministers who would have taken services and preached in the Circuit’s churches during the year, but with the churches closed due to the pandemic, most of these activities were put on hold. One Local Preacher completed training during the year. ## **Lay Workers:** The Circuit employed no lay workers in 2020/21. ## **Property Management:** The Circuit maintained 4 manses, 1 of which is rented out under a twelve month assured short hold tenancy agreement. One manse was sold and was replaced with a new manse in Boorley Park. The Circuit remains responsible for five church properties: 9 31[st] August 2021 Southampton Methodist Circuit (26/01) **St Andrews, Sholing** : This property is currently being run by New Community Church. A property management team had been set up with the aim of achieving a break even budget by September 2018. This was achieved but due to the pandemic, this has shown a loss this current year, and will hopefully show a surplus going forward. It is planned to use at least 50% of any surplus towards further enhancement of the premises. **Bitterne Methodist Church:** Is currently being sold as a possible development site. Joint Planning permission is being submitted with the local Anglican Church for the land. **Northam Methodist Church:** The church at Northam closed its doors on the 31[st] December 2019 and the premises were put up for sale. Contracts have been exchanged but completion is waiting for the Land Registry documents to be obtain as it was found that part of the premises were never registered to the church. The congregation from Northam has spread itself around the other circuit churches. **Swaythling Methodist Church:** This property had been run by City Life Church for a number of years. After a lot of discussions between groups, it was decided to sell the premises on the open market, and has been sold on the 10[th] June 2021. **Totton Christian Centre:** This building was let to Churches Together in Totton under a yearly licence that was signed in March 1993, which has never been renewed. There has been no rent received from the tenants, and they have been responsible for the upkeep of the building. After consultation with TMCP, it is felt that after such a long period, the tenants may have an “Implied Tenancy”, which now needs to be formalised. It has been agreed that the premises needs to valued with the prospect of a Market Rent being paid for the premises by the existing tenants, but as they are only breaking even or making a small profit, we will grant the money received from the rent back to them as an “Outreach Project”. ## **Registration as a Charity:** The Southampton Methodist Circuit formally registered as a separate charity on 21st June 2011. ## **Volunteers:** A substantial part of the Circuit’s ministry is accomplished by volunteers. All Circuit Stewards are volunteers as are other members of the Circuit Meeting, apart from the Ministers. All the local preachers are volunteers. 10 31[st] August 2021 Southampton Methodist Circuit (26/01) ## Section E - Financial review The figures are as shown in the Financial Statement which is presented with this report **Our Reserves Policy** can be considered in two parts: 1. The policy relating to those unrestricted funds that we need to ensure are available to meet the day-to-day running costs of the Circuit. These comprise our Central Finance Board (CFB) Reserve account and cash balances held in the HSBC Bank and Cooperative Bank current accounts as adjusted for other current assets and liabilities. 2. The policy relating to current and future use of funds held with the Circuit Model Trust Funds (CMTF) by the Trustees for Methodist Church Purposes (TMCP). For the avoidance of doubt, this includes those investments held in the CFB “Mixed Fund”. The aim of this policy is threefold: - To secure and sustain the Circuit’s viability and future. - To give reassurance to the general public that the Circuit, which is a charity, intends to use all of the money coming into its care for the purposes of the charity. - To ensure that the Circuit is not unnecessarily holding funds which might otherwise be better used for the mission of the wider Connexion. We aim to hold at least four months' and no more than eight months' normal expenditure, in the General Fund (including the Central Finance Board general account). Our 31 August 2021 balances were approximately £750,799 (Unrestricted funds minus property values). Our total expenditure (excluding that on grants, property purchases and Connexional property levy) was £275,740 for the year to 31st August 2021. Our reserves should, therefore, fall between £92K and £184K; we therefore exceed this figure as at the year end, but the excess will be used to offset the losses that we are facing over the coming years, due to the loss of income to our churches due to the pandemic. The use of remaining capital assets in the CMTF and the CFB Mixed Fund is kept under review by the Circuit Leadership team and the Circuit Meeting in the light of the Circuit's objectives for mission; these objectives are presently as laid out in the Circuit's 20-20 vision statement agreed in June 2013. During the next year it is likely that significant property assets will be realised and the Circuit leadership will continue to assess our use of the capital released in achieving our stated mission objectives. The Reserves Policy is reviewed on an annual basis to ensure that the funds held are in keeping with the aims of the Circuit as outlined in its Mission Policy. The Circuit does not exist for the purpose of retaining unnecessary capital and the Circuit Leadership Team and the Managing Trustees are committed to ensuring the effective use the Circuit’s Reserves for the stated aims of the Circuit. ## **Deficit:** No fund is materially in deficit 11 31[st] August 2021 Southampton Methodist Circuit (26/01) 12 31[st] August 2021 Southampton Methodist Circuit (26/01) ## **Section F - Other optional information** ## **Covid-19:** The budget for 2020/21 had shown a deficit of £61,690, but has risen to £76,031 for the current year, so the coronavirus pandemic has had an impact on our accounts at this stage. Upon reviewing the budget for 2022/22, it was recognised that the churches would not be able to meet any increase in the current assessment due to the uncertainty of when the churches were able to get back to the position they were in before the pandemic struck, so it was agreed at the Circuit Treasurer’s Meeting to hold the assessments at their present level until such times as their incomes have improved. The Church Treasurers agreed to continually review the situation during the year with the hope that they will be able to increase their giving once their income streams have improved. At the moment the budget show a deficit of £67,648 for the year ending 31[st] August 2022. This budget was then ratified by the Circuit Leadership Team and subsequently the Circuit Meeting. The deficit will be met by the income we received from the sale of Swaythling Methodist Church which was sold for £1.1M. ## **Section G - Declaration** **The Trustees approved this report on** **This report was signed on their behalf by:** **Signature(s) Date:** **Full name(s) Rev John Hughes** **Position:** Superintendent Minister and Chair of the Circuit Meeting **Signature(s) Date: Full name(s) Eric William Gerrey Position:** Managing Trustee 13 31[st] August 2021 Southampton Methodist Circuit (26/01) **Southampton Methodist Circuit (26/01)** **Annual Trustees Report For the year ended 31[st] August 2021** **Registered Charity No: 1142521** 1 31[st] August 2021 Southampton Methodist Circuit (26/01) ## **Annual Report 2020/21** **The Trustees present their report along with the financial statements of the Circuit for the year ended 31 August 2021. The financial statements have been prepared in accordance with the accounting policies set out in the accounts and comply with SORP and applicable accounting standards.** ## **Section A: Reference and administration details** **Charity name** SOUTHAMPTON METHODIST CIRCUIT **Registered charity number** 1142521 **Charity's principal address** c/o St James Road Methodist Church St James Road Southampton SO15 5HE **Contact Address held by Charity Commission** c/o 20 Chatsworth Road Bitterne Southampton SO19 7NJ 2 31[st] August 2021 Southampton Methodist Circuit (26/01) ## **Trustees / Members of the Circuit Meeting** Trustees on the date the report was approved are: **----- Start of picture text -----**
Trustee name Office Dates acted if not Name of person (or
for whole of year body) entitled to
ending Aug 2021 appoint trustee
Rev Arthur Cowburn Presbyter Resigned 31 [st] August Ex Officio
2021
Rev John Hughes Presbyter Joined 1 [st] September Ex Officio
2021
Rev Christine Coram Presbyter Ex Officio
Rev Patricia Davis Presbyter Ex Officio
Rev David Roger Hill Supernumerary Resigned 31 [st] August Ex Officio
Minister 2021
Deacon Carole Smith Deacon Ex Officio
Rev’d Anthony Supernumerary Ex Officio
Parkinson Minister
Mrs Manosree Chandra Circuit Secretary Circuit Meeting
Mr Mark Tosdevin Circuit Steward Resigned 31 [st] March Circuit Meeting
2021
Mrs Rachel Pearce Circuit Steward Resigned 31 [st] March Circuit Meeting
2021
Mr Eric Gerrey Circuit Steward in Circuit Meeting
charge of finance
Mr Steve Irish Circuit Steward Circuit Meeting
Mr Malcolm Carter Circuit Steward Circuit Meeting
Mrs Debbie Craggs Circuit Steward Circuit Meeting
Mrs Gill Robinson Circuit Steward Circuit Meeting
Mr Graham Fletcher Circuit Steward Circuit Meeting
Mrs Jan Hayter Circuit Preachers and Circuit Preachers and
Worship Leaders Worship Leaders
Meeting Secretary Meeting
Mr Neil Hitch Treasurer, St James St James Road
Road Methodist Methodist Church
Church Council
Mr Derek Bone St James Road St James Road
Methodist Church Methodist Church
Steward Council
Mrs Elizabeth St James Road St James Road
Woodman Methodist Church Methodist Church
Steward Council
Oliver Hack St James Road St James Road
Methodist Church Methodist Church
elected representative Council
Mr Russell Hack St James Road St James Road
Methodist Church Methodist Church
elected representative Council
Mr Colin Fullbrook St James Road St James Road
Methodist Church Methodist Church
elected representative Council
Mr David John St James Road St James Road
Woodman Methodist Church Methodist Church
elected representative Council
**----- End of picture text -----**
3 31[st] August 2021 Southampton Methodist Circuit (26/01) **----- Start of picture text -----**
Mr David Woodbury Treasurer, Trinity Trinity LEP Church
Local Ecumenical Council
Partnership
Mrs Hazel Irish Elected Representative, Trinity LEP Church
Trinity Local Council
Ecumenical Partnership
Eileen Woodling Elected Representative, Trinity LEP Church
Trinity Local Council
Ecumenical Partnership
Mr Stephen Irish Elected Representative Trinity LEP Church
Trinity Local Council
Ecumenical Partnership
Mr Keith Prentice Elected Representative Trinity LEP Church
Trinity Local Council
Ecumenical Partnership
Mr Graham Fletcher Treasurer Hedge End Hedge End Methodist
Methodist Church Church
Mr Irvine Taylor Hedge End Methodist Hedge End Methodist
Church, Steward Church Council
Mr Michael Bliss Hedge End Methodist Hedge End Methodist
Church elected Church Council
representative
Miss Diane Judd Hedge End Methodist Hedge End Methodist
Church elected Church Council
representative
Mr Mark Price Treasurer, Waterside Waterside Methodist
Methodist Church Church Council
Mrs Lesley Butterfield Waterside Methodist Waterside Methodist
Church elected Church Council
representative
Mrs Caroline Rose Steward, Woolston Woolston Methodist
Ellen Methodist Church Church Council
Mr Andrew Franks Secretary, Woolston Woolston Methodist
Methodist Church Church Council
Mr Eric Gerrey Treasurer ,Woolston Woolston Methodist
Methodist Church Church Council
Mr Terry Ralph Parriss MHA Rep
Mrs Christina Pritchard Local Preachers Rep
Mrs Jan Warren
Mr Don Skinner Circuit Meeting
Mrs Alison Judd Circuit Meeting
Mr Brian Hooper Representative on Circuit Meeting
Circuit Leadership
Team
Mr Nigel John Bailey Circuit Meeting
**----- End of picture text -----**
4 31[st] August 2021 Southampton Methodist Circuit (26/01) ## **Names of staff members during the year:** ## **Superintendent Minister:** Rev Arthur Cowburn up to 31[st] August 2021 Rev John Hughes from 1[st] September 2021 ## **Presbyters:** Rev Christine Coram Rev Patricia Davis ## **Deacons:** Deacon Carole Smith ## **Names and addresses of advisers:** ## **Bankers:** ## **Day-to-day funds:** HSBC Bank plc 55 Above Bar Street Southampton Hampshire SO14 7DZ Co-operative Bank Co-operative Bank PLC PO Box 101 1 Balloon Street Manchester M60 4EP ## **Investment funds:** Central Finance Board of the Methodist Church 9 Bonhill Street London EC2A 4PE Trustees for Methodist Church Purposes (TMCP) Central Buildings Oldham Street Manchester M1 1JQ 5 31[st] August 2021 Southampton Methodist Circuit (26/01) ## **Auditor:** Chris Goodhead Knight Goodhead Limited 7 Bournemouth Road, Chandler’s Ford, Eastleigh, Hampshire SO53 3DA ## **Solicitors:** Blake Morgan LLP New Kings Court Tollgate Chandlers Ford Eastleigh Hampshire SO53 3LG Barlow Robbins The Oriel Sydenham Road Guildford GU1 3UE Southampton Methodist Circuit does not retain any permanent legal advisers. 6 31[st] August 2021 Southampton Methodist Circuit (26/01) ## **Section B: Structure, Governance and Management** ## **Governance:** ## **Description of the charity’s trusts:** Type of governing document Deed of Union (1932) and Methodist Church Act (1976) How the charity is constituted: Act of Parliament Trustee selection methods Appointed by local churches and existing trustees Ministers are automatically trustees ## **Additional governance issues (Optional information)** ## **Induction/Training:** - ¨ Range of guidance produced by Methodist Connexion. - ¨ Leaflet ‘The Role of a Trustee in The Methodist Church’ given to each trustee. ## **Structure:** - ¨ Part of the Southampton District. - ¨ Accountable to the Methodist Conference. ## **Related Parties:** - ¨ Currently working with Pioneer Group to deliver new methods of Outreach in Southampton ## **Risks:** - ¨ Considered by the Circuit Leadership Team. - ¨ Take professional advice as required. - ¨ Regular review process. - ¨ Adopted Safeguarding training carried out at regular intervals Payments were made to Trustees as detailed in the accounts presented to Circuit and with this report. The Managing Trustees approved total of grants and loans paid over or agreed during 2020/21 as follows: |Grants
Loans
**Total**|£51,626
£ 0
**£51,626**| |---|---| 7 31[st] August 2021 Southampton Methodist Circuit (26/01) ## **Summary of the main activities and achievements from 1 September 2020 to 31 August 2021** **Pioneer Connexion Partnership:** This continues to be a part of our strategy for the future development of the Circuit. We were not successful in the transfer of the property at Swaythling to the Pioneer churches meeting at that location following due legal process in order to support their continuing and valuable work in the community, and subsequently the premises have been sold on the open market to another party. We continue to work together at St Andrews church which is now a thriving community with regular activity during the week and a maturing congregation; we have managed to make this self-financing and self-managed, but due to the pandemic, we have made a loss this year, but, with hope and prayer, this should return to normal activities in the coming year. **Healthy Churches –** The Circuit Leadership team are considering the way forward for the Circuit from 2021 and are having meetings to discuss this with District input. The St James Road New Song Café continues to meet at St James Road currently on a monthly basis and the congregation continues to thrive. The Drinks Ministry continues to be a part of the outreach of the circuit in Southampton at Christmas, Easter, Mothering Sunday and Fathers Day to offer tea and coffee and support to the visiting relatives visiting the Crematorium and the Cemetery on the west side of the city. We are still looking to provide this on the east side as we move forward. The Waterside and Soul Café has continued to thrive in Dibden Purlieu, and serves the local area in many ways. The church at Fawley continues to work in their community to offer support to the homeless and those in need. We support the Street Pastors across the city in all the work that they do. Deacon Carole Smith is continuing her work in the new housing areas of Hedge End looking for ways to increase the outreach of the Hedge End church. She is also working in the community at Woolston where they are exploring growing their faith and also reaching out to their neighbours. **2020 Vision:** In June 2013 the Circuit Meeting voted overwhelmingly to adopt a new policy for the development of our Circuit over the next few years. This document sets out our plans for increased ministry and mission across the Circuit, with a clear aspiration to work towards ensuring the presence of full-time ministry for every church. We are now reviewing this Vision and looking for ways to increase our presence in the City and deliver new options for outreach and working together. 8 31[st] August 2021 Southampton Methodist Circuit (26/01) ## **Public Benefit:** Southampton Methodist Circuit carries out a range of activities in pursuance of its mission. The trustees consider that these activities, summarised below, provide benefit to those who are members of the Circuit through the local Methodist churches and the wider community of Southampton. ## **Religious Activities:** ## **Acts of worship and pastoral care:** The Circuit produces a quarterly preaching plan to ensure regular acts of worship take place at each of the Methodist churches under its remit (St James Road, Trinity LEP, Waterside, Woolston, and Hedge End). These are open to all people, without charge. The Ministers have pastoral care for these churches. ## **Baptisms, Weddings and Funerals:** The Ministers conducted baptisms, weddings and funerals at each of the local Methodist churches in the Circuit. These services are available at the discretion of the Minister. No charge is made for baptisms. A modest set fee is usually charged for weddings and funerals. ## **Section D - People and property** ## **Presbyters, Deacons and Local Preachers:** The Circuit spiritually and financially supported 3 Presbyters, 1 Deacon and 1 part-time Supernumerary Minister throughout the year. We have 22 active Local Preachers and 9 Supernumerary Ministers who would have taken services and preached in the Circuit’s churches during the year, but with the churches closed due to the pandemic, most of these activities were put on hold. One Local Preacher completed training during the year. ## **Lay Workers:** The Circuit employed no lay workers in 2020/21. ## **Property Management:** The Circuit maintained 4 manses, 1 of which is rented out under a twelve month assured short hold tenancy agreement. One manse was sold and was replaced with a new manse in Boorley Park. The Circuit remains responsible for five church properties: 9 31[st] August 2021 Southampton Methodist Circuit (26/01) **St Andrews, Sholing** : This property is currently being run by New Community Church. A property management team had been set up with the aim of achieving a break even budget by September 2018. This was achieved but due to the pandemic, this has shown a loss this current year, and will hopefully show a surplus going forward. It is planned to use at least 50% of any surplus towards further enhancement of the premises. **Bitterne Methodist Church:** Is currently being sold as a possible development site. Joint Planning permission is being submitted with the local Anglican Church for the land. **Northam Methodist Church:** The church at Northam closed its doors on the 31[st] December 2019 and the premises were put up for sale. Contracts have been exchanged but completion is waiting for the Land Registry documents to be obtain as it was found that part of the premises were never registered to the church. The congregation from Northam has spread itself around the other circuit churches. **Swaythling Methodist Church:** This property had been run by City Life Church for a number of years. After a lot of discussions between groups, it was decided to sell the premises on the open market, and has been sold on the 10[th] June 2021. **Totton Christian Centre:** This building was let to the Churches Together in Totton under a yearly licence that was signed in March 1993, which has never been renewed. There has been no rent received from the tenants, and they have been responsible for the upkeep of the building. After consultation with TMCP, it is felt that after such a long period, the tenants may have an “Implied Tenancy”, which now needs to be formalised. It has been agreed that the premises needs to valued with the prospect of a Market Rent being paid for the premises by the existing tenants, but as they are only breaking even or making a small profit, we will grant the money received from the rent back to them as an “Outreach Project”. ## **Registration as a Charity:** The Southampton Methodist Circuit formally registered as a separate charity on 21st June 2011. ## **Volunteers:** A substantial part of the Circuit’s ministry is accomplished by volunteers. All Circuit Stewards are volunteers as are other members of the Circuit Meeting, apart from the Ministers. All the local preachers are volunteers. 10 31[st] August 2021 Southampton Methodist Circuit (26/01) ## Section E - Financial review The figures are as shown in the Financial Statement which is presented with this report **Our Reserves Policy** can be considered in two parts: 1. The policy relating to those unrestricted funds that we need to ensure are available to meet the day-to-day running costs of the Circuit. These comprise our Central Finance Board (CFB) Reserve account and cash balances held in the HSBC Bank and Cooperative Bank current accounts as adjusted for other current assets and liabilities. 2. The policy relating to current and future use of funds held with the Circuit Model Trust Funds (CMTF) by the Trustees for Methodist Church Purposes (TMCP). For the avoidance of doubt, this includes those investments held in the CFB “Mixed Fund”. The aim of this policy is threefold: - To secure and sustain the Circuit’s viability and future. - To give reassurance to the general public that the Circuit, which is a charity, intends to use all of the money coming into its care for the purposes of the charity. - To ensure that the Circuit is not unnecessarily holding funds which might otherwise be better used for the mission of the wider Connexion. We aim to hold at least four months' and no more than eight months' normal expenditure, in the General Fund (including the Central Finance Board general account). Our 31 August 2021 balances were approximately £766,244 (Unrestricted funds minus property values). Our total expenditure (excluding that on grants, property purchases and Connexional property levy) was £275,748 for the year to 31st August 2021. Our reserves should, therefore, fall between £92K and £184K; we therefore exceed this figure as at the year end, but the excess will be used to offset the losses that we are facing over the coming years, due to the loss of income to our churches due to the pandemic. The use of remaining capital assets in the CMTF and the CFB Mixed Fund is kept under review by the Circuit Leadership team and the Circuit Meeting in the light of the Circuit's objectives for mission; these objectives are presently as laid out in the Circuit's 20-20 vision statement agreed in June 2013. During the next year it is likely that significant property assets will be realised and the Circuit leadership will continue to assess our use of the capital released in achieving our stated mission objectives. The Reserves Policy is reviewed on an annual basis to ensure that the funds held are in keeping with the aims of the Circuit as outlined in its Mission Policy. The Circuit does not exist for the purpose of retaining unnecessary capital and the Circuit Leadership Team and the Managing Trustees are committed to ensuring the effective use the Circuit’s Reserves for the stated aims of the Circuit. ## **Deficit:** No fund is materially in deficit. 11 31[st] August 2021 Southampton Methodist Circuit (26/01) ## **Section F - Other optional information** ## **Covid-19:** The budget for 2020/21 had shown a deficit of £61,690, but has risen to £76,031 for the current year, so the coronavirus pandemic has had an impact on our accounts at this stage. Upon reviewing the budget for 2021/22, it was recognised that the churches would not be able to meet any increase in the current assessment due to the uncertainty of when the churches were able to get back to the position they were in before the pandemic struck, so it was agreed at the Circuit Treasurer’s Meeting to hold the assessments at their present level until such times as their incomes have improved. The Church Treasurers agreed to continually review the situation during the year with the hope that they will be able to increase their giving once their income streams have improved. At the moment the budget show a deficit of £67,648 for the year ending 31[st] August 2022. This budget was then ratified by the Circuit Leadership Team and subsequently the Circuit Meeting. The deficit will be met by the income we received from the sale of Swaythling Methodist Church which was sold for £1.1M. ## **Section G - Declaration** **The Trustees approved this report on** **This report was signed on their behalf by:** **Signature(s) Date:** **Full name(s) Rev John Hughes** **Position:** Superintendent Minister and Chair of the Circuit Meeting **Signature(s) Date:** **Full name(s) Eric William Gerrey** **Position:** Managing Trustee 12 **Circuit No: 26/1** ## **Southampton Methodist Circuit** ## **Statement of Financial Activities (SOFA) for the year ended 31 August 2021** |**Notes to**|**Notes to**||**Circuit Model**|**Designated**|||| |---|---|---|---|---|---|---|---| ||**the**|**General Fund**|**Trust**|**Funds**|**Restricted**|**Endowment**|**Total**| |**accounts**||
**(Unrestricted)**|**(Unrestricted)**|**(unrestricted)**|**Funds**|**Funds**|**2020-21**| |||£|£|£|£|£|£| |**Income**|||||||| |1 Donations and legacies|4|**-**|**-**|**-**|**-**|**-**|**-**| |2 Income from monetary investments|6|**106**|**1,180**|**-**|**22**|**-**|**1,308**| |3 Income from investment properties||**-**|**-**|**-**|**-**|**-**|**-**| |4 Assessments on Churches||**188,280**|**-**|**-**|**-**|**-**|**188,280**| |5 Capital Receipts||**-**|**942,421**|**-**|**-**|**-**|**942,421**| |6 Grants received||**-**|**-**|**-**|**-**|**-**|**-**| |7 Other charitable income|5|**39,669**|**-**|**-**|**-**|**-**|**39,669**| |8**Total income**||**228,055**|**943,601**|**-**|**22**|**-**|**1,171,678**| |**Expenditure**|||||||| |9 Grants and donations|7|**51,626**|**-**|**-**|**-**|**-**|**51,626**| |10 Salaries and associated costs|11|**114,635**|**-**|**-**|**-**|**-**|**114,635**| |11 Property maintenance||**6,050**|**53**|**-**|**-**|**-**|**6,103**| |12 Connexional assessment & model trust levy||**-**|**404,859**|**-**|**-**|**-**|**404,859**| |13 District Assessment & Levy||**53,109**|**187**|**-**|**8**|**-**|**53,304**| |14 Depreciation||**993**|**-**|**-**|**-**|**-**|**993**| |15 Office expenses||**-**|**-**|**-**|**-**|**-**|**-**| |16 Other outgoings|8|**100,337**|**376**|**-**|**-**|**-**|**100,713**| |17**Total charitable expenditure**||**326,750**|**405,475**|**-**|**8**|**-**|**732,233**| |18 Gains/(losses) on monetary investments||**-**|**6,517**|**-**||**(47)**|**6,470**| |19 Gains/(losses) on investment properties||**-**|**-**|**-**|**-**|**-**|**-**| |20**Net income/(expenditure)**||**(98,695)**|**544,643**|**-**|**14**|**(47)**|**445,915**| |21 Transfers between funds|18|**17,719**|**(17,719)**|**-**|**-**|**-**|**-**| |22 Other gains/(losses)|18|**-**|**-**|**-**|**-**|**-**|**-**| |23**Net movement in funds**||**(80,976)**|**526,924**|**-**|**14**|**(47)**|**445,915**| |24 Total funds brought forward||**2,458,187**|**81,342**|**14,034**|**1,582**|**2,495**|**2,557,640**| |**25 Total funds carried forward**||**2,377,211**|**608,266**|**14,034**|**1,596**|**2,448**|**3,003,555**| **Circuit No: 26/1** ## **Southampton Methodist Circuit** ## **Statement of Financial Activities (SOFA) for the year ended 31 August 2020 (Restated)** ||**Notes to**||**Circuit Model**|**Designated**|||| |---|---|---|---|---|---|---|---| ||**the**|**General Fund**|**Trust**|**Funds**|**Restricted**|**Endowment**|**Total 2019-**| ||**accounts**|
**(Unrestricted)**|**(Unrestricted)**|**(unrestricted)**|**Funds**|**Funds**|**20**| |||£|£|£|£|£|£| |**Income**|||||||| |1 Donations and legacies|4|**-**|**-**|**4,045**|**-**|**-**|**4,045**| |2 Income from monetary investments|6|**693**|**1,299**|**-**|**9**|**-**|**2,001**| |3 Income from investment properties||**-**|**-**|**-**|**-**|**-**|**-**| |4 Assessments on Churches||**242,160**|**-**|**-**|**-**|**-**|**242,160**| |5 Capital Receipts||**-**|**-**|**-**|**-**|**-**|**-**| |6 Grants received||**1,500**|**-**|**-**|**10,000**|**-**|**11,500**| |7 Other charitable income|5|**74,646**|**-**|**-**|**-**|**-**|**74,646**| |8**Total income**||**318,999**|**1,299**|**4,045**|**10,009**|**-**|**334,352**| |**Expenditure**|||||||| |9 Grants and donations|7|**6,100**|**180,000**|**-**|**-**|**-**|**186,100**| |10 Salaries and associated costs|11|**158,062**|**-**|**-**|**27,126**|**-**|**185,188**| |11 Property maintenance||**9,994**|**-**|**-**|**-**|**-**|**9,994**| |12 Connexional assessment & model trust levy||**-**|**9,712**|**-**|**-**|**-**|**9,712**| |13 District Assessment & Levy||**49,704**|**-**|**-**|**-**|**-**|**49,704**| |14 Depreciation||**746**|**-**|**-**|**-**|**-**|**746**| |15 Office expenses||**1,709**|**-**|**-**|**-**|**-**|**1,709**| |16 Other outgoings|8|**74,020**|**542**|**-**|**-**|**-**|**74,562**| |17**Total charitable expenditure**||**300,335**|**190,254**|**-**|**27,126**|**-**|**517,715**| |18 Gains/(losses) on monetary investments||**-**|**(637)**|**-**||**23**|**(614)**| |19 Gains/(losses) on investment properties||**-**|**-**|**-**|**-**|**-**|**-**| |20**Net income/(expenditure)**||**18,664**|**(189,592)**|**4,045**|**(17,117)**|**23**|**(183,977)**| |21 Transfers between funds|18|**(17,126)**|**-**|**-**|**17,126**|**-**|**-**| |22 Other gains/(losses)|18|**-**|**-**|**-**|**-**|**-**|**-**| |23**Net movement in funds**||**1,538**|**(189,592)**|**4,045**|**9**|**23**|**(183,977)**| |24 Total funds brought forward||**2,456,649**|**270,934**|**9,989**|**1,573**|**2,472**|**2,741,617**| |**25 Total funds carried forward**||**2,458,187**|**81,342**|**14,034**|**1,582**|**2,495**|**2,557,640**| ## **Restatment of 2020 comparatives** The above Statement of Financial Activities (SOFA) has been restated to reallocate the Pioneer Connexion Project Fund from restricted to designated funds as this fund was designated by the Trustees and is not considered to be restricted. **Circuit No: 26/1** ## **Southampton Methodist Circuit** ## **Balance Sheet as at 31 August 2021** **----- Start of picture text -----**
General Fund Circuit Model Designated Restricted Totals 2021 Totals 2020
(Unrestricted) Trusts Funds and
(Unrestricted) (Unrestricted) Endowment
Notes to the Funds
Accounts £ £ £ £ £ £
Fixed Assets
Circuit Manses & Equipment 12 2,219,233 0 0 0 2,219,233 2,100,823
Investment properties 0 0 0 0 0 200,001
Investments 13 0 42,022 0 2,448 44,470 37,999
Total fixed assets 2,219,233 42,022 0 2,448 2,263,703 2,338,823
Current Assets
Debtors 14 50,450 0 0 0 50,450 64,188
Investment properties 14 0 0 0 0 0 0
Investments with TMCP 0 566,244 0 1,596 567,840 47,420
Central Finance Board Deposits 39,833 0 0 0 39,833 91,218
Cash at Bank and in hand 14 94,272 0 14,034 108,306 41,835
Total current assets 184,555 566,244 14,034 1,596 766,429 244,661
Current liabilities
Creditors (due in under 1 year) 15 26,577 0 0 0 26,577 21,844
Grants payable within 2019-20 0 0 0 0 0 4,000
Total current liabilities 26,577 0 0 0 26,577 25,844
Net current assets/liabilities 157,978 566,244 14,034 1,596 739,852 218,817
Total assets less current 2,377,211 608,266 14,034 4,044 3,003,555 2,557,640
li biliti
Long term liabilities
(due after more than one year)
Grants payable after 2019-20 0
Loans to the Circuit 0
0
Net assets 2,377,211 608,266 14,034 4,044 3,003,555 2,557,640
Funds of the Circuit
General Fund (Unrestricted) 2,377,211 2,377,211 2,458,187
Circuit Model Trust Fund
(Unrestricted) 608,266 608,266 81,342
Designated Funds (Unrestricted) 14,034 14,034 0
Total Unrestricted Funds 18 2,999,511 2,539,529
Restricted Funds 18 4,044 4,044 18,111
Endowment Funds 0
Total Funds 2,377,211 608,266 14,034 4,044 3,003,555 2,557,640
**----- End of picture text -----**
Signed Circuit Treasurer ## **Southampton Methodist Circuit** ## **Circuit No: 26/1** **Cash flow statement for the year ended 31 August 2021** **----- Start of picture text -----**
2021 2020
Statement of cash flows Note £ £
Cash from operating activities
Net cash used in operating activities (488,821) (220,262)
Cash flows from investing activities
Dividends,interest and rents from investments 1,308 2,001
-
Proceeds from the sale of property,plant and equipment 425,265
Purchase of property,plant and equipment (460,988) (2,984)
- -
Purchase of intangible assets
Proceeds from the sale of investments 1,058,742 -
Purchase of investments - (2,471)
Other - -
Net cash provided by investing activities 1,024,327 (3,454)
Cash flows from financing activities
- -
New borrowing
- -
Repayments of borrowing
- -
Net cash used in financing activities
Change in cash and cash equivalents in the reporting period 535,506 (223,716)
Cash and cash equivalents at the beginning of the reporting period 180,473 404,189
Cash and cash equivalents at the end of the reporting period 715,979 180,473
2021 2020
Reconciliation of net income to net cash flow from operating activities £ £
Net income for the reporting period ( as per statement of financial activities) 445,915 (183,977)
Adjustments for:
Depreciation and amortisation charges 993 746
Profit on the sale of fixed assets (942,421) -
Loss on the sale of fixed assets - -
Gains on investments (6,471) 614
Dividends, interest and rents from investments (1,308) (2,001)
- -
Decrease/(increase) in stocks
(increase)/decrease in debtors 13,738 (29,778)
increase/(decrease) in creditors 733 (5,866)
Net cash used in operating activities (488,821) (220,262)
2021 2020
Analysis of cash and cash equivalent £ £
Cash in hand 715,979 180,473
- -
Short term deposit (less than 3 months)
Total cash and cash equivalents 715,979 180,473
**----- End of picture text -----**
**Southampton Methodist Circuit** ## **Circuit No: 26/1** ## **Notes to the Accounts** ## **1. Basis of accounting** The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable for charities preparing their accounts in according with FRS 102. ## **Public Benefit Entity** Southampton Methodist Circuit meets the definition of a public benefit entity under FRS 102. Assets and liabilities are intially recognised at historic costs or transaction value unless otherwise stated in the relevant accounting policy below. ## **Going concern** The trustees believe that the circuit is a going concern. ## **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 also the following Endowment funds as listed. Details of each material fund are disclosed in the final note 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 fixed asset investments are shown at their market value at the end of the year, and on the accruals basis to show a true and fair view of the Circuit’s financial position and activities. ## **Income Recognition** Income is included in the Statement of Financial Activities (SOFA) when the Circuit becomes entitled to the resources, and the trustees are reasonably certain they will receive the resources; and the monetary value can be measured with sufficient reliability. ## **Expenditure** 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. ## **Grants** Grants made by the Circuit from its own funds are recognised in full at the time of agreement or when the Circuit accepts that there is a legal or operational obligation to make the payment. ## **Tangible fixed assets for use by the Circuit** These are capitalised if they can be used for more than one year, and individually cost at least £1,000. The freehold property is shown in the accounts at cost or 2015 deemed values. No depreciation is provided on the buildings because the trustees consider the current residual fair value of the manses (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 properties have been reviewed for impairment. ## **Investment Properties** Investment properties are held for their rental and/or sale potential. ## **Investments** Investments are valued in the balance sheet at market value at the year end. Investment income is included in the accounts when receivable and any gains or losses on revaluation at the year end are shown in the SOFA. ## **Current Asset Investments** Current Asset Investments are held for resale with a potential maturity date of less than one year. Current Asset Investments are held at the lower of cost and net realiable value. ## **Debtors and Prepayments** Debtors include the prepayment of the September stipend in August. ## **Creditors** Creditors include both sundry expenses and deferred income, specifically the 1st quarter assessment received in August. ## **Southampton Methodist Circuit** ## **Circuit No: 26/1** **----- Start of picture text -----**
Circuit Model 2021 2020
Unrestricted Restricted
4. Donations and legacies Trust Fund Total Total
£ £ £ £ £
Donations - - - - -
- - - -
Legacies 4,045
Total - - - - 4,045
5. Charitable activities - Circuit Model 2021 2020
Unrestricted Restricted
other Trust Fund Total Total
£ £ £ £ £
Connexions - - - -
Lettings 39,669 0 39,669 74,646
Other - - - - -
Total 39,669 - - 39,669 74,646
Circuit Model 2021 2020
Unrestricted Restricted
6. Investment income Trust Fund Total Total
£ £ £ £ £
Interest received 106 1,180 22 1,308 2,001
Total 106 1,180 22 1,308 2,001
Circuit Model 2021 2020
Unrestricted Restricted
7. Grants and donations Trust Fund Total Total
£ £ £ £ £
United Reformed Church 41,526 - - 41,526 -
Waterside 4,000 - - 4,000 4,000
St James Road 5,000 - - 5,000 180,000
- - - - -
Property
Books 1,000 - - 1,000 1,000
Other 100 - - 100 1,100
Total 51,626 - - 51,626 186,100
**----- End of picture text -----**
|**8. Other outgoings**|**Unrestricted**
**Circuit Model**
**Trust Fund**
**Restricted**
**2021**
**Total**
**2020**
**Total**
**£**
**£**
**£**
**£**
**£**| |---|---| |Insurance
Rates and utilities
Letting fees
Legal and professional
City Life Church
Repairs and maintenance
Accountancy
Travel
Pulpit Expenses
Telephone
Sundry Expenses
**Total**|12,174
-
-
12,174
13,960
26,262
-
-
26,262
29,813
3,349
-
-
3,349
3,400
11,940
376
-
12,316
542
12,158
-
-
12,158
8,496
24,665
-
-
24,665
11,676
1,020
-
-
1,020
1,020
2,125
-
-
2,125
2,449
-
-
-
-
687
857
-
-
857
1,758
5,787
-
-
5,787
761
**100,337**
**376**
**-**
**100,713**
**74,562**| **Southampton Methodist Circuit** ## **Circuit No: 26/1** ## **9. Payment to Trustees** Payments made to trustees for additional services provided to the Circuit by agreement with the Circuit Meeting Number of trustees who were paid expenses Nature of the expenses Expense payments primarily relate to reimbursement for travel and computing costs Total amount paid ## **10. Fees 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 or auditor **----- Start of picture text -----**
This year Last year
£ - -
8 8
£ 4,749 5,686
£ 4,800 1,020
£ - -
**----- End of picture text -----**
## **11. Paid employees** |**Staff Costs paid during the year were:**
Gross wages, salaries and benefits in kind
85,471
Employer’s National Insurance costs
8,120
Pension costs
20,618
Levies
£
426
Total staff costs
**114,635**
**Average number of staff employeed during the year**
**were:**
**3**
£
£
£
£|140,521
10,263
33,898
506
**185,188**
4| |---|---| **Circuit No: 26/1** **Southampton Methodist Circuit** ## **12. Tangible Fixed Assets** Cost or valuation **----- Start of picture text -----**
Payments on
Other fixed Fixtures, account and
Residential assets including fittings and assets under
Land Other Land Manses Other buildings motor vehicles equipment construction Total
£ £ £ £ £ £ £ £
Balance brought forward 1,388,585 710,000 2,984 2,101,569
Additions 460,000 988 460,988
Revaluations (+/-)
Disposals 341,585 341,585
Transfers * (+/-)
Balance carried forward 1,507,000 710,000 3,972 2,220,972
Accumulated depreciation
**Basis SL
** Rate 25%
Balance brought forward 746 746
Depreciation charge for year (-) 993 993
Revaluations (+/-)
Disposals (-)
Transfers* (+/-)
Balance carried forward 1,739 1,739
Net book value
- - - -
Brought forward 1,388,585 710,000 2,238 2,100,823
Carried forward - - 1,507,000 710,000 - 2,233 - 2,219,233
**----- End of picture text -----**
**Circuit No: 26/1** **Southampton Methodist Circuit** ## **13. Investments** The funds that support the Circuit Model Trust Fund and the Manses Fund are held by TMCP in Trustees Interest Funds on which interest is credited to the accounts each month. These are regarded as medium and long term investments. TMCP is the legal owner and Custodian Trustee of all Methodist Model Trust property, including Legacies, Endowments and Accumulated Funds. Trust property is held for and on behalf of local Managing Trustees who are responsible for the day to day management of trust property. TMCP ensure that, through providing guidance and acting under their direction, the Managing Trustees comply with charity law and Methodist law and polity as determined by the Methodist Conference. ## **Analysis of investment movements** **----- Start of picture text -----**
This year Prev year
Investments listed on a recognised Stock Exchange 44,470 37,999
Investments held in common investment funds,
Securities not listed on a recognised Stock Exchange
Other investments
Total 44,470 37,999
Change in investment values
Carrying (market) value at beginning of year 37,999 36,142
Add: additions to investments at cost 2,471
Less: disposals at carrying value -
N et gain/(loss) on revaluation 6,471 - 614
Carrying (market) value at end of year 44,470 37,999
**----- End of picture text -----**
**Circuit No: 26/1** **Southampton Methodist Circuit** ## **14. Analysis of current assets** **Debtors and prepayments** Prepayments and accrued income Other debtors **Total debtors and prepayments Analysis of cash at bank** Bank balance **Total Cash and Bank** **----- Start of picture text -----**
This year Last year
£ £
49,537 64,188
913 -
50,450 64,188
**----- End of picture text -----**
**----- Start of picture text -----**
108,306 41,835
108,306 41,835
**----- End of picture text -----**
## **Current Asset Investments** Included within current assets are properties which are under negotiation for sale within 12 months of the balance sheet date. These properties were acquired at no cost and are included at the lower of cost and net realisable value being £Nil. ## **15. Analysis of current liabilities and long term creditors** Loans Other Creditors **Total Current Liabilities** |£
£
£|-
26,577
26,577|-
25,844
25,844| |---|---|---| ## **16. Capital Commitments and Contingent Liabilities** At the 31 st August 2021 the Circuit has no capital commitments. No Contingent liabilities were identified at 31st August 2021. **Circuit No: 26/1** **Southampton Methodist Circuit** ## **18. Detailed analysis of individual fund movements** ## **Unrestricted Funds** **----- Start of picture text -----**
Unestricted Fund Name Opening Income Expenditure Gains/losses Transfers Closing Balance Purpose of the fund
General 2,458,187 228,055 (326,750) - 17,719 2,377,211 Unrestricted General fund for use at Charity's discretion
CMT 81,342 943,601 (405,475) 6,517 (17,719) 608,266 Unrestricted General fund for use at Charity's discretion
Connexions 14,034 14,034 pioneer connexions project funding for outreach
Totals 2,553,563 1,171,656 (732,225) 6,517 - 2,999,511
Restricted and endowment Funds
Restricted Fund Name Opening Income Expenditure Gains/losses Transfers Closing Balance Purpose of the fund
Balance
Northam Funds 1,582 22 (8) - 1,596 For outreach in and around Northam
Endowment funds 2,495 -47 2,448 John Cannon Bequest
-
-
Totals 4,077 22 (8) (47) - 4,044
**----- End of picture text -----**
## **Southampton Methodist Circuit DECLARATIONS** ## **Treasurer** I confirm that I have prepared the accounts from the records of the Circuit and that they include all funds under the control of the Circuit Meeting Signature of Treasurer Date Name Eric Gerrey Address 20 Chatsworth Road, Bitterne, Southampton SO19 7NJ **Presentation to the Circuit Meeting for approval.** I confirm that the Accounts have been presented to the Circuit Meeting on 7th Sept 2021 and were approved. Signature of the Chair of the meeting Name of the Chair of Rev John Hughes the meeting Date ___________________________________________________________________________ ## **Opinion** We have audited the financial statements of Southampton Methodist Circuit (the "Charity"), for the year ended 31 August 2021, which comprise the Statement of Financial Activities, Balance Sheet, Cash flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards including Financial Reporting Standard 102: The Financial Reporting Standard applicable to the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view ofincome and expenditure for the year then ended;the state of the Charity’s affairs as at 31 August 2021, and of its - haveAccounting Practice; andbeen properly prepared in accordance with United Kingdom Generally Accepted - have been prepared in accordance with the requirements of the Charities Act 2011. ## **Basis of opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charity’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## **Other matter** In the previous accounting period the trustees of the Charity took advantage of audit exemption under s144 of the Charities Act 2011. Therefore, the prior period financial statements were not subject to audit. ## **Other information** The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report. We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion: - the information given in the trustees’ report is inconsistent in any material respect with the - - financial statements; or - sufficient accounting records have not been kept; or - the financial statements are not in agreement with the accounting records and returns; or - we have not obtained all the information and explanations necessary for the purposes of our audit. ## **Responsibilities of the trustees** As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so. ## **Auditor’s responsibilities for the audit of the financial statements** We have been appointed as auditor under Section 144 Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. We identified the laws and regulations applicable to the Charity through discussions with trustees and other management and we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence. We assessed the susceptibility of the Charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we performed analytical procedures to identify any unusual or unexpected relationships, tested journal entries to identify unusual transactions and investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing financial statement disclosures to underlying supporting documentation; - reading the minutes of meetings of those charged with governance; and - enquiring of management as to actual and potential litigation and claims; There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. Knight Goodhead Limited is eligible for appointment as auditor of the Charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. ## **Use of our report** This report is made solely to the Charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and the regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the Charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed. ## **CJ GOODHEAD FCA Dated:** ## **Senior Statutory Auditor Knight Goodhead Limited** Chartered Accountants and Statutory Auditors 7 Bournemouth Road, Chandler's Ford, Eastleigh, Hampshire, SO53 3DA ## **Southampton Methodist Circuit** ## **Independent Examiner’s Statement** 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 Southampton 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 applicable requirements concerning the form and content of accounts set out in the Charities 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. Name Chris Goodhead FCA Signature Relevant Professional qualification or body FCA, Institute of Chartered Accountants in England and Wales Address Knight Goodhead Ltd, 7 Bournemouth Road, Chandlers Ford SO53 3DA Date