## ## |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| ## ## ## ## ## ## ## ## ## ## ## ## ## ##