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2021-08-31-accounts

Trustees' Annual Report
farthe year ended 31stAugust 2021
Legal framework
and organisation
Full Name: Bromsgrove &Redditch Methodist
Circuit {"the Circuit" )
The Circuit has pastoral oversight of10Churches
in Bromsgrove and Redditch. Itexists
to support the Christian
Mission ofthose Churches.
Charity Registration
Number: 1145630
Date ofregistration
26th January 2012
Communication
address: Circuit Office Ecumenical
Centre 6Evesham Walk Reddltch 8974EX
The members ofthe Bromsgrove
&Redditch Methodist
Circuit Meeting are the Charity's Trustees.
Membership
ofthat Meeting consists ofCircuit office holders, ministers and
representatives
appointed
by the local churches.
Afull list ofTrustees isshown asAppendix
Atothis report. Trustees are appointed
by
the existing
Trustees. They include ex-officio office holders and representatives
ofthe
10churches.
Circuit Ministers
and Stewards are shown on the front page.
Circuit Lay Workers:
Mrs Sally Meredith
Mrs Anne Batchelor {from1stFebruary 2022)
Administrators:
Mrs Carol Baker {retired 30th April 2021)
Mrs Christine Chambers {retired 31stMarch 2021)
The principal officer overseeing the financial management
and accounting forthe Circuit
MrJohn Wyatt
Independentexaminer:GarryRutter
The Oakley, Kidderminster
Road
Droitwich
WR9 9AY
Banks:
a) Central Finance Board ofthe Methodist Church
b) Trustees for Methodist Church purposes
c) HSBC
Financial statements
forthe year ended 31stAugust 2021
Income
Income is primarily
drawn from the assessments
paid tothe Circuit by its 10Churches.
The Covid-19 pandemic has meant that fora significant
part ofthe year the 10Churches have
not been open for Worship nor other meetings. Despite this the incomes of
the Churches have been maintained
closeto their pre-Covid
levels
The 10Churches
have all been able tocontinue paying their assessments
tothe Circuit atthe agreed amounts. The financial state ofthe Churches
has been closely monitored
by the Circuit throughout
the year and todate.
Rental income relates tothe rental ofthree manses temporarily
occupied by 3rd parties and
rental income from the hire ofBlackwell Church
Hall.
Expenditure
Stipend expenditure
has increased
in line with Methodist Conference approval.
There was no significant
grant made during this year.
The District Assessment
and Levy is used tofund the work ofthe wider Methodist Church.
There was significant expenditure
on the Manses this year incurred to maintain
and enhance
the value ofthose Manses.
Fund balances
Asat31August 2021the net current assets less liabilities were E370650.The decrease
compared
with last year Isaccounted for in the net deficiency ofF37,129.
Plans forthe year ending 31stAugust 2022
These have been prepared
on the basis that there will be3full time ordained staff.
and the layworker
listed In the legal framework
paragraph
above. Anew lay worker
has been engaged from 1stFebruary 2022to assist at5tudley and Church Hill churches.
There isasyet no replacement
forthe two adminsitrators
who retired during the year.
The administration
work is being undertaken
by volunteers
from among the Trustees
until the vacant posts are filled.
The inability toappoint replacement
administrators
has allowed the Circuit to reduce
assessments
requested
from the Churches
by Ssl' inthe year ended 31stAugust 2022compared
with
those requested
in the year to31stAugust 2021.
Basis ofpreparation
and legal framework
The Grcuit's financial statements
forthe year ended 31August 2021have been prepared
in
accordance with the Charities Act2011and the Charities: Statement ofRecommended Practice
as applicable tothe financial
Reporting Standard
{FRS)102
Trustees Annual Report
forthe year ended 31stAugust 2021-continued
Aims and organisation
ofthe Grcuit:
The Orcuit's aim isto assist and oversee 10Churches and toactasa resource provider forthe Methodist
Church within an area around
Birmingham,
Warwickshire
and Worcestershire.
The purposes ofthe Methodist
Church are and always have been, the advancement
of:
a)The Christian faith in accordance with the doctrinal standards
and discipline ofThe Methodist
Church;
b) Any charitable
purpose forthe time being ofany organisation
within The Methodist
Church structure;
c)Any charitable
purpose forthe time being ofany society or institution
subsidiary orancillary toThe Methodist Church;
d) Any purpose forthe time being ofany charity being a charity subsidiary tooranciliary toThe Methodist Church
The Circuit attempts toachieve it's aims by:
e)organising
and resourcing
regular public actsofworship open to members ofthe Church and to non-members
alike.
f)teaching Christianity
through
sermons, courses and small groups.
g) resourcing
pastoral work including
visiting the sick and bereaved.
h) leading religious assemblies
in schools.
I)promoting
Chrisbanity
through the staging ofevents and services.
I) providing
Chaplaincy
services to local institutions.
Public benefit
The trustees have had regard tothe Charity Commission's
guidance on public benefrt. In particular the Circuit's aims
are inclusive ofthe public as a whole and the aims also benefit all those ofthe Christian
faith and beliefs.
Achievements
and performance
During the year the Circuit has been instrumental
in assisting it's 10Churches to maintain
buildings
and outreach which encourage
Christian
Worship.
Structure, governance
and management
The governing
document for the Circuit isthe Deed ofUnion (1932)and Methodist
Church Act (1976)
Detailed governance
arrangements
are outlined
within the Constitutional
Practice and Discipline ofthe Methodist
Church by
order ofthe annual conference ("CPD").
Day to day management
ofthe Orcuit is undertaken
by the Orcuit Leadership team along with the Local Preachers'
meeting.
Trustee training
Guidance published
by The Methodist
Connexion tosupport the running ofthe Orcuit, specifically the leaflet
'The Role ofaTrustee in The Methodist
Church'
isavailable to all new Trustees.
Related parties
The Circuit iswithin the Birmingham
District ofThe Methodist Church. The District isaccountable to Methodist Conference.
The following
Methodist
Churches are within the Circuit: Alcester, Bromsgrove,
Catshill, Crabbs Cross, Emmanuel
Redditch,
Lickey End, StAndrew's
Church
Hill, Studley, The Bridge at Headless Cross and Rowney Green Alvechurch.
Emma nuel Redditch, The Bridge at Headless Cross and Rowney Green are Local Ecumenical
Parntnerships
with other Christian
denominations.
Risk management
Major risks are identified
and recorded by the Circuit Leadership Team with professional
advice taken as required.
There isa regular annual
review process undertaken
and recorded.
Income and Expenditure
is monitored
and iscompared
with the approved
annual budget on a half yearly basis
todetect trends as part ofthe risk management
process to avoid unforeseen
calls on reserves.
Safeguarding
Every person has a value and dignity which comes directly from the creation ofmale and female in God's own image and
likeness. Christians see this potential asfulfilled
by God's recreation of us in Christ. Among other things this
implies a duty tovalue all people as bearing the image ofGod and therefore to protect them from harm.
Methodist Connexional
practice outlines commitment
tothe following
principles:
~ the care and nurture
of,and respectful
pastoral
ministry
with, all children,
young people and adults
~the safeguarding
and protection ofall children, young people and adults when they are vulnerable
~ the establishing
ofsafe, caring communities
which provide a loving environment
where there isinformed
vigilance astothe dangers ofabuse.
~the careful selection and training ofall those with any responsibility
within the Church, in line with Safer
Recruitment
principles,
including the use ofcriminal records disclosures
and registration
with the relevant vetting and
barring schemes.
~the response,
without
delay, to every complaint
made which suggests that an adult, child oryoung person
may
have been harmed
and cooperating
with the police and local authority
in any investigation.
~ seeking towork with anyone who has suffered abuse, developing
with them an appropriate
ministry ofinformed
pastoral care.
~seeking tochallenge any abuse ofpower, especially
by anyone in a posiuon oftrust.
~ seeking tooffer pastoral care and support,
including
supervision
and referral tothe proper authorities, to
any
member ofour church community
known to have offended against a child, young person orvulnerable
adult.
~ In all these principles we will follow legislation, guidance and recognised good practice
The Circuit has committed
itself to ensuring the implementation
ofConnexional
Safeguarding
Policy, government
legislation,
guidance and safe practice inthe CIrcuit and inthe Churches.
The Circuit has committed
itself tothe provision ofsupport, 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 ofchiidren and adults who may be vulnerable.
Reserves policy
The reserves policy ofthe trustees Isto hold no more than 6 months
normal expenditure
after taking account of
potential
and promised
suppo*of the 10churches in mission including
property maintenance.

Notes to Circuit Model
the General Fund Trust Fund Restricted Endowment
accounts (Unrestricted) (Unrestricted) Funds Funds Total 2020
6 E 6
Income
Donations and legacies
income from monetary
investments
11 856 23 20 910 2,640
Income from investment properties 31,920 31,920 22,200
Assessments
on churches
1&4,047 184,047 190,518
Blackwall
Kali transferred
to circuit 424,558
Property sales 1,184 1,184
Other charitable
income
4,199 1,620 5,819 5,353
Total income 220,177 2,040 1,643 20 223,880 645,269
Expenditure 261,214
Grants and donations 575 575 11,807
Salaries, national
insurance
and pension 144,073 144,073 145,179
Employees travel and expenses 6,359 6,359 7,441
Property maintenance 45,474 45,474 37,190
District assessment
8 levy
42,120 11,319 53,439 56,S01
Depreciation
Circuit office expenses 3,587 3,587 1,700
Other outgoings 5,310 535 1,860 7,707 8,683
Total expenditure 247,498 11,854 i 1,&60 2 261,214 268,901
Gains/(lasses)
on monetary
investments {3) 208 205 -19
Gains/&losses)
on investment
properlies
Net incomel(expenditure) (27,321) (9,814) (220) 226 (37,129) 376,349
Transfers between funds 18,428 (18,400) {9) (19)
Other gains
Net movement in funds (8,893) (28,214) (229) 207 37,129) 376,349
Total funds brought forward 1,807,926 362,131 7,629 1,136 2,178,822 1,802,473
Total funds earned forward 1,799,033 333,917 7,400 1,343 2,141,693 2,178,822

Notes to Circuit Model
the General Fund Trust Fund Restricted Endowment
accounts (Unrestricted) (Unrestricted) Funds Funds Totai 2020
E E f
Fixed Assets
Menses 8 equipment 835,000 835,000 890,000
Investment
properties
934,558 934558 879558
Investments 147 1,338 1,485 1,278
Total fixed assets 1,769,558 147 1,338 1,771,043 1)770,836
Current Assets
Debtors and prepayments 10 14,722 14,722 35,730
Loans by the Circuit to churches 10 86,138 86,138 94,537
Deposits with TMCP 247,779 7,240 5 255,024 274,840
Deposits with CFB 9,924 9,924 9,180
Deposits with HSBC 22,886 13 22,899 10,019
Total current assets 47,532 333,917 7,253 5 388,707 424)306
Current liabilities
Creditors (due in under 1 year) 18,057 18,057 16,320
Total current liabilities 18,057 18,057 16,320
Net current assets 29,475 333)917 7,253 5 370,850 407,98(I
To&lassets less current liabilities
1,799,033 333,917 7,400 1,343 2,141,993 2,178,822
Funds ofthe Circuit
General Fund (Unrestricted) 1,799,033 1,799,033 1,807,927
Circuit Model Trust Fund
(Unrestricted) 333,917 333,917 362,130
Total Unrestricted Funds 2,132,950 2,1?0,057
Restricted
Funds
7,400 7,400 7,629
Endowment
Funds
1,343 1,343 1,136
Total Funds 1,799,033 333,91? ?,400 1,343 2,141,693 2,178,82

Notes tothe financial statements Notes tothe financial statements
1Accounting
policies
Charity Information
Bromsgrove 6 Redditch Circuit ofthe Methodist
Church isa trust which is registered
with the
Charity Commission
in England
and Wales. The registered
office is:-Circuit Office,
Ecumenical
Centre, 6 Evesham
Walk, Redditch B974EX.
Accounting
convention
The financial 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 (FRS 102)"(as amended
for
accounting
periods coinmencing
from 1January 2016).The Circuit is a trust as defined
by FRS 102.
The Circuit has taken advantage
ofthe provisions
in the SORP for charities applying
FRS102
Update
Bulletin 1 not to prepare a Statement
ofCash Flows.
The financial statements
are prepared
in steriing, which isthe functional
currency ofthe Circuit.
Monetary
amounts
in these financial statements
are rounded to the nearest 6.
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 forthe 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 fora specified purposes.
4.
Endowment
funds which are also held for specified purposes.
Details ofRestricted
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 entitled to it, the trustees
are
reasonably
certain they will receive it; and the monetary
value can be measured
with sufflcient
reliability.
Expenditure
Expenditure
is recognised
when a liability is incurred,
ora constructive
obligation arises, which
results
in the payment ofthe expense being unavoidable.
Liabilifies 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 oroperational
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 fixed 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
isdeemed to be 6295,000. 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
Other investment
properties
include Blackwefl Church
Hall - which is shown at
insured
value when itwas transferred
to the Circuit during the year to31stAugust
2020.
The other investment
properties
are shown at fair value. No depreciation
is provided
on
investment
properties as the trustees consider the current residual value to be not less than
their insured orfair value. For details 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.

Debtors and Prepayments
This is mainly in respect ofMinisters'
Stipends
paid in advance plus various other smaller
prepayments.
Creditors
Creditors
include sundry expenses accrued, and the 1stquarter ofnext 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 isa legally enforceable
right toset offthe recognised
amounts
and
there is an intention to settle on a net basis or to realise the asset and settle the liabiTity
Basicfinancial assets
Basic financial assets, which include debtors and cash and bank balances, are initially
measured
at transaction
price including
transaction
costs and are subsequently
cerned at
amortised
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 atfair value through
income and expenditure,
are
assessed for indicators ofimpairment
at each 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 fiows 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 isadecrease in the impairment
loss arising from an event occurring
after the
impairment
was recognised, the impairment
is reversed. The reversal is such that the current
carrying
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
forthe year.
Derecognition
offinancial assets
Financial assets are derecognised
only when the contractual
rights tothe cash flows from
the
asset expire orare 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,
inciuding
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
cerned at amorfised cost, using the effective interest
rate
method.
Trade creditors are obligations to pay for goods orservices that have been acquired
in the
ordinary course ofoperations
from suppliers.
Amounts
payable are ctassified as current
liabilities
ifpayment
is due within one year orless. Ifnot, they are presented
as non-current
liabilities. Trade 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
orcancelled.
Taxation
The Circuit is exempt from corporation tax on its charitable
acbvities.
Investments
investments
are stated at deemed
market value.

There were no payments
made to trustees
There were no payments
made to trustees
for additional for additional services provided tothe Circuit, services provided tothe Circuit, exduding stipends which are induded in note
6below. However there were expenses of trustees.
2021 2020
Number ofTrustees paid expenses
Total amount
paid
F6,649 58,144
Expense payments
primarily
relate to reimbursement for telephone, travel and computing costs
3 Fees forexamination
ofthe financial
statements
2021 2020
Independent
examiner's fees
financial statements
for reporting on the F1,212 K1,176
Other fees (eg:advice, accountancy
services) paid tothe
independent
examiner.
NIL NIL
4 Paid employees
StaffCosts paid during the year were 2021 2020
Gross wages, salaries and benefits in kind 5113,800 E'I 15,762
Employer's
National
Insurance costs
59,170 F8,835
Pension costs 521,103 820,581
Total staff costs 5144,073 6145,178
Average number offull-time equivalent
employees
in the year was:
6Tangible fixed assets
Cost orvaluation
Fixtures,
fittings and
Ilanses equipment Total
f.
Cost orvaluation
Balance brought foiward 890,000 3,589 893,589
Transfer from investment assets 175,000 175,000
Revaluations
Transfer to investment
assets
(230,000) (230,000)
Balance carried forward 835,000 3,589 838I589
Accumulated
depreciation
Balance brought forward 3,589 3,589
Charge foryear
Revaluations
Disposals
Balance canied forward 3,589 3,589
Net book value
Brought forward 890,000 - 890,000
Balance cerned forward 835,000 - 835,000
7 Investment assets
Dwellings- Former fittings
previously Church and
Manses Hall equipment Total
Cost orvaluation
Balance brought forward 455,000 424,558 879,558
Transfer from Manses 230,000 230,000
Revaluations
Transfer to Manses (175,000) (175,000)
Balance earned forward 510,000 4%,558 - 934,558
Net book value
Brought forward 455.000 424,558 - 879,558
Balance camed fotward 510,000 424,558 - 934,558