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2020-08-31-accounts

Notes to Circuit Model
the General Fund Trust Fund Restricted Endowment
accounts (Unrestricted) (Unrestricted) Funds Funds Total
E E E E
Income
Donations and legacies
Income from monetary
investments
50 2,504 63 23 2,640 3,115
Income from investment properties 22,200 22,200 21,920
Assessments
on churches
190,518 190,518 208,840
Bladnvell
Hall transferred
to Circuit 424,558 424,558
Grants received 0
Other charitable income Total income 3,031
640,357
2,504 2.322
2,385
23 5,353
645,269
12,127
245,802
Expenditure
Grants and donations 2,807 9,000 11,807 5,614
Salaries, national
insurance
and pension 145,179 145,179 166,884
Employees
travel and expenses
7,441 7,441 18,339
Properly maintenance 37,190 37,190 47,489
District assessment
& levy
40,840 16,081 56,901 61,023
Depreciation 0 0
Circuit oflice expenses 1,700 1,700 8,070
Other outgoings 4,567 662 3,452 8,683 16,252
Total expenditure 239,724 25,723 3,452 268,901 321,671
Gains/(losses)
on monetary
investments (20) (19)
Net incomel(expenditure)
Transfers between
funds
400,633
48,471
(23,219)
(48,400)
(1,066)
(50)
1
(21)
376,349
0
P5,869)
0
Other gains 0 22
Net movement in funds 449,104 (71,619) (1,116) (20) 376I349 (75,847)
Total funds brought
forward
Total funds carried
forward 1,358,823
1,807,927
433,749
362,130
8,745
7,629
1,156
1,136
1,802,473
2,178,822
1,878,320
1,802,473

Notes to Circuit Model
the General Fund Trust Fund Restricted Endowment
accounts (Unrestricted)
f
(Unrestricted)
f
Funds
f
Funds
f
Total
f
2019
f
Fixed Assets
Manses &equipment 890,000 890,000 890,000
Investment
properties
879,558 879,558 455,000
Investments 147 1,131 1,278 1,298
Total fixed assets 1,769I558 147 1,131 1,770,836 1,346,298
Current Assets
Debtors and prepayments 10 35,730 35,730 15,840
Loans by the Circuit to churches 10 94,537 94,537 102,938
Deposits with TMCP 267,593 7,242 274,840 338,057
Deposits with CFB 9,180 9,180 6,974
Deposits with HSBC 9,779 240 10,019 9,444
Total current assets 54,689 362,130 7,482 424,306 473,253
Current
liabilities
Creditors (due in under 1 year) 16,319 16.319 17,078
Total current liabilities 16,319 0 0 0 16,319 17,078
Net current assets 38,370 362,130 7,482 5 407,987 456,175
Total assets less current liabilities
1,807,927 362,130 7,629 1,136 2,178,822 1,802,473
Funds ofthe Circuit
General Fund (Unrestricted) 1,807,927 1,807,927 1,358,823
Circuit Model Trust Fund
(Unrestricted) 362,130 362,130 433,749
Total Unrestricted Funds 2,170,057 1,792,572
Restricted
Funds
7,629 7,529 8,745
Endowment
Funds
1,136 1,136 1,156
Total Funds 1,807,927 362,130 7,629 1,136 2,178,822 1,802,473

1Accounting
policies
1Accounting
policies
Charity Information
Bromsgrove
& Redditch
Circuit ofthe Methodist Church is a trust which is registered
with the
Charity Commission
in England
and Wales. The registered
office is:-Circuit Office, Ecumenical
Centre, 6Evesham
Walk, Redditch B974EX.
Accounting
convention
The ffnancial statements
have been prepared
in accordance
with the Circuit's governing
document
and "Accounting
and Reporting
by Charities: Statement ofRecommended
Practice
applicable to charities
preparing
their accounts
in accordance
with the Financial
Reporting
Standard
applicable
in the UK and Republic of Ireland (FRS102)"(effective 1 January 2019).
The Circuit is a trust as defined
by FRS102.
The Circuit has taken advantage
ofthe provisions
in the SORP for charities applying
FRS
102
Update
Bulletin
1 not to prepare a Statement
ofCash Flows.
The financial statements
are prepared
in sterling,
which is the functional
currency ofthe Circuit.
Monetary
amounts
in these financial statements
are rounded
to the nearest f.
Going concern
At the time ofapproving
the financial statements,
the Trustees have a reasonable
expectation
that the Circuit has adequate
resources to continue
in operational
existence for the
foreseeable
future. Thus the Trustees continue to adopt the going concern basis ofaccounting
in preparing
the financial statements.
Funds
The funds
held constitute: 1.General Fund which is unrestricted
and is held forany purpose of
the Circuit. 2.The Circuit Model Trust Fund has wide purposes
defined
in Standing
Orders and
is categorised as unrestricted.
3.Restricted funds which are held for aspecified purposes.
4,
Endowment
funds which are also held for specified purposes.
Details of Restricted
and
Endowment
Funds are disclosed
in the final note tothese accounts.
Any funds may be
represented
by more than just cash.
Income
Income is included
in the SOFA when the Circuit becomes entiged to it, the Trustees are
reasonably
certain they will receive it; and the monetary
value can be measured
with sufficient
reliability.
Expenditure
Expenditure
is recognised
when a liability is incurred,
ora constructive
obligation arises, which
results
in the payment
ofthe expense
being unavoidable.
Liabilities are recognised as soon
as
an outflow ofeconomic benefit is considered
more likely than not under the legal or
constructive
obligation
committing
the Circuit to pay.
Grants
Grants made by the Circuit from its own funds are recognised
in full at the time ofagreement
or
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 expense to which
it
refers.
Tangible fixed assets for use by the Circuit
Tangible
fixed assets are capitalised
ifthey can be used for more than one year, and cost at
least F500,Tangible
ffxed assets other than buildings
are written offover their useful economic
lives.
Freehold
Property,
being Ministers'
residenses
or Manses, is shown
in the accounts at 2015
deemed values, ofwhich the land component
is deemed to be E205,000. No depreciation
is
provided
on the buildings
on the freehold properties
because the trustees consider the current
residual fair value ofthe buildings
to be not less than their deemed
value. The properties
have
been reviewed
for impairment.
For details see note 6.
Investment properties
The addition to lnvetsment
properties
during the year is the transfer ofthe Trusteeship
of
Blackwell Church
Hall from Lickey End Church to the Circuit. This property is included at its
insured
value.
Other investment
properties
are shown at fair value. No depreciation
Is provided
on investment
properbes as the trustees consider the current residual
value to be not less than their insured
orfair value. Fordetails see note 7.
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 orlosses on revaluation
at
the year end are shown
in the SOFA.

Notes to the financial statements
-continued
Debtors and Prepayments
This is mainly
in respect of Ministers'
Stipends
paid in advance
plus various other smaller
piepayments.
Creditors
Creditors
include sundry expenses accrued, and the 1stquarter of next year's assessment
received
in advance.
Financial instruments
The Circuit has elected to apply the provisions
ofSection 11'Basic Financial
Instruments'
and
Section 12'Other Financial
Instruments
Issues' ofFRS102to all ofits financial instruments.
Financial
instruments
are recognised
in the Circuit's balance sheet when the Circuit becomes
party to the contractual
provisions
ofthe instrument.
Financial assets and liabilities are offset, with the net amounts
presented
in the financial
statements.
when there is a legally enforceable
riight to set offthe recognised
amounts
and
there is an intention
to settle on a net basis or to realise the asset and settle the liability
Basic financial assets
Basic financial assets, which
include debtors and cash and bank balances, are initially
measured
at transaction
price including
transaction
costs and are subsequently
canied at
amoitised
cost using the effective interest method
unless the arrangement
constitutes a
financing
transaction,
where the transaction
is measured
at the present value ofthe future
receipts discounted
at a market rate ofinterest. Financial assets classified as receivable
within
one year are not amortised.
Impairment
offinancial assets
Financial assets, other than those held at fair value through
income and expenditure,
are
assessed for indicators ofimpairment
ateach reporting
date. Financial assets are impaired
where there is objective evidence that, as a result ofone or more events that occurred after the
initial recognition
ofthe financial asset, the estimated
future cash flows have been affected.
Ifan asset is impaired,
the impairment
loss is the difference between
the carrying
amount
and
the present value ofthe estimated
cash flows discounted
at the asset's original effective
interest rate. The impairment
loss is recognised
in net income/expenditure
for the year.
Ifthere is a decrease
in the impairinent
loss arising
from an event occurring
after the
impairment
was recognised,
the impairment
is reversed. The reversal
is such that the current
canying
amount does not exceed what the carrying
amount
would have been, had the
impairment
not previously
been recognised. The impairment
reversal
is recognised
in net
income/expenditure
for the year.
Derecognition
offinancial assets
Financial assets are derecognised
only when the contractual
rights to the cash tlows from
the
asset expire or are settled, or when the Circuit transfers
the financial asset and substantially
all
the risks and rewards ofownership
to another entity, or ifsome significant
risks and rewards
of
ownership
are retained
but control ofthe asset has transferred
to another
party that is able
to
sell the asset in its entirety to an unrelated
third party.
Basicfinancial
liabilities
Basicfinancial
liabilities,
including
creditors and bank loans are initially recognised
at
transaction
price unless the arrangement
constitutes a financing
transaction.
where the debt
instrument
is measured
at the present value ofthe future payments
discounted
at a market
rate ofinterest. Financial
liabilities classified as payable
within one year are not amoitised.
Debt instruments
are subsequently
carried at amortised
cost, using the effective interest rate
method.
Trade creditors are obligations
to pay for goods or services that have been acquired
in the
ordinary course ofoperations
from suppliers.
Amounts
payable are classified as current
liabilities
ifpayment
is due within one year or less. Ifnot, they are presented as non-current
liabilities. T'rade creditors are recognised
initially at transaction
price and subsequently
measured
at amortised
cost using the effective interest method.
Derecognition
offinancial
liabilities
Financial
liabilities are derecognised
when the Circuit's contractual
obligations
expire or are
discharged
or cancelled.

2Payment to Trustees
There were no payments
made toTrustees for additional
6below. However there were expenses ofTrustees.
services provided to the Circuit, excluding stipends which are Included
in note
2020 2019
Number ofTrustees paid expenses 14
Total amount paid E8,144 E17,456
Expense payments
primarily
relate to reimbursement for telephone, travel and computing costs
3Fees for examination
ofthe financial statements
2020 2019
Independent
examiner's
fees
financial statements
for reporting on the E1,176 E1,104
Other fees (eg:advice, accountancy
services} paid to
independent
examiner.
the NIL NIL
4Paid employees
StaffCosts paid during the year were: 2MO 2019
Gross wages, salaries and benefits
in kind
E115,762 E134,890
Employer's
National
Insurance costs
E8,835 E9,266
Pension costs E20,581 E22,728
Total staff costs E145,178 E166,384
Average number offull-time equivalent
employees
in the year were;
5Capiial commitments
and contingent
liabilities
Fixtures,
fittings and
Ilanses equipment Total
8
Cost orvaluation
Balance brought forward 890,000 3,589 893,589
Additions 0
Revaluations 0
Disposals 0
Balance carried forward 890,000 3,589 893,589
Accumulated
depreciation
Balance brought forward 3,.589 3,589
Charge for year 0
Revaluations 0
Disposals 0
Balance carried forward 3,589 3,589
Net book value
Brought forward 890,000 0 890,000
Balance carried forward 890,000 0 890,000

? Investment assets
Fixtures,
Dwellings- Former fittings
previously Church and
Iwanses Hall equipment Total
F. 5
Cost or valuation
Balance brought forward 455,000 455,000
Additions 424,558 424,558
Revaluations 0
Disposals 0
Balance canied forward 458,000 424,558 0 8?9,558
Net book value
Brought forward 455,000 0 0 455,000
Balance cerned forward 455,000 424,558 0 879,858