2022-08-31-accounts

Legal framework and organisation
Full Name: Bromsgrove &Redditch Methodist Circuit ("the Circuit" )
The Circuit has pastoral oversight of10Churches in Bromsgrove and Redditch.	It exists
to support the Christian Mission ofthose Churches.
Charity Registration Number: 1145630
Date ofregistration 26th January 2012
Communication address: Circuit Office Ecumenical Centre 6Evesham Walk Redditch			B974EX
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.
A full list ofTrustees is shown as Appendix Ato this report. Trustees are appointed			by the existing
Trustees. They include ex-offficio office holders and representatives	of	the 10churches.
Circuit Ministers and Stewards are shown on the front page.
Circuit Lay Workers: Mrs 5ally Meredith
Mrs Anne Batchelor (from 1st February 2022)
Administrator: Mrs Lucy West (from 6th June 2022)
The principal officer overseeing the financial management and accounting for the		Circuit
Mr John Wyatt
Independent examiner Ormerod Rutter
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 for the year ended 31stAugust 2022
Income
Income is primarily drawn from the assessments paid to the Circuit by its 10Churches.
There was an agreed reduction of5% in assessments compared with	the
previous year to assist the Churches during the Covid pandemic.
Although regular income is down compared with the previous year, a non-recurring			sale
ofa parcel ofsurplus land has resulted in an overall increase in income.
Despite the pandemic continuing to affect attendances during the year,
the incomes ofthe individual Churches have been maintained close	to	their
pre Covid levels. The Churches have all continued to pay their assessments
to the Circuit at the agreed amounts. The financial state ofthe Churches
has been monitored by the Circuit throughout the year and to date.
Rental income relates to the rental oftwo manses temporarily occupied by 3rd	parties			and
rental income from the hire of Blackwell Church Hall.
When a Church ceases as a place ofworship the Circuit becomes the managing	trustee
ofthat Church.
Expenditure
Stipend expenditure has increased in line with Methodist Conference approval.
A grant ofE30,000was made during the year to the Methodist Ministers Pension Trust.
The District Assessment and Levy is used to fund the work ofthe wider Methodist		Church.
There was significant expenditure on the Manses and other Circuit properties
this year to maintain and enhance their values.
Fund balances
As at 31August 2022 the net current assets less liabilities were E313,554
which compares with last year's figure ofE370,650.
Plans for the year ending 31stAugust 2023
These have been prepared on the basis that there will be 3full time ordained staff.
and the layworkers listed in the legal framework paragraph above.
Basis ofpreparation and legal framework
The Circuit's financial statements forthe year ended 31August 2022 have been	prepared in
accordance with the Charities Act2011and the Charities: Statement	ofRecommended					Practice
as applicable to the Financial Reporting Standard (FRS)102
Aims and organisation ofthe Circuit:
The Circuit's aim isto assist and oversee 10Churches and to act as a resource provider				for the 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 for the time being ofany organisation within The Methodist				Church structure;
c)Any charitable purpose for the time being of any society or institution subsidiary		or ancillary to The Methodist						Church;
d) Any purpose for the time being ofany charity being a charity subsidiary to or	ancillary to The Methodist						Church
The Circuit attempts to achieve it's aims by:
e) organising and resourcing regular public acts ofworship open to members of	the		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 Christianity through the staging ofevents and services.
J) providing Chaplaincy services to local institutions,

Trustees Annual Report
for the year ended 31stAugust 2022 - continued
Public benefit
The trustees have had regard to the Charity Commission's guidance on public benefit. 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.
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 forthe Circuit is the Deed of Union (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 Circuit is undertaken by the Circuit Leadership team along with the Local Preachers'			meeting.
Trustee training
Guidance published by The Methodist Connexion to support the running ofthe Circuit, specifically the leaflet
'The Role ofaTrustee in The Methodist Church' is available to all new Trustees.
Related parties
The Circuit is within the Birmingham District ofThe Methodist Church. The District is accountable 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.
Emmanuel 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 is a regular annual review process undertaken and recorded.
Income and Expenditure is monitored and is compared with the approved annual budget on a half yearly basis
to detect 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 as fulfilled by God's re-creation ofus in Christ. Among other things this
implies a duty to value all people as bearing the image ofGod and therefore to protect them from harm.
Methodist Connexional practice outlines commitment to the following principles:
~ the care and nurture of, and respectful pastoral ministry with, all children, young people and adults
~ the safeguarding and protection of all children, young people and adults when they are vulnerable
~the establishing ofsafe, caring communities which provide a loving environment where there is informed
vigilance as to the dangers ofabuse.
~ the careful selection and training of all 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 to work with anyone who has suffered abuse, developing with them an appropriate ministry of informed				pastoral care.
~ seeking to challenge any abuse of power, especially by anyone in a position oftrust.
~ seeking to offer pastoral care and support, including supervision and referral to the proper authorities,	to	any
member ofour church community known to have offended against a child, young person or vulnerable				adult.
~ In all these principles we will follow legislation, guidance and recognised good practice
The Circuit has committed itself to ensuring the implementation ofConnexional Safeguarding Policy, government
legislation, guidance and safe practice in the Circuit and in the 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 ofchildren and adults who may be vulnerable.
Reserves policy
The reserves policy ofthe trustees isto hold no more than 6months normal expenditure after taking account of
potential and promised support ofthe 10churches in mission including property maintenance.

			Notes to			Circuit Model
			the	General Fund		Trust Fund .	Restricted	Endowment
			accounts	(Unrestricted)	(Unrestricted)		Funds		Funds	Total	2021
				F		6	E		6
Income
Donations and legacies										0
Income from monetary investments				18.99		1,077.08	35.19		32.52	1,163.78	910
Income from investment properties				26,842.96						26,842.96	31,920
Assessments on churches				172,998.98						172,998.98	184,047
Blackwell Hall transferred to	circuit
Property sales						63,544.00				63,544.00	1,184
Other charitable income				4,845.50			1,634.43			6,479.93	5,819
	Totalincome			204,706.43		64,621.08	1,669.62		32.52	271,029.65	223,880
Expenditure
Grants and donations				440.00		33,750.00	1,636.93			35,826.93	575
Salaries, national insurance	and pension			148,161.87						148,161.87	144,073
Employees travel and expenses				9,084.58						9,084.58	6,359
Property maintenance				63,729.22						63,729.22	45,474
District assessment 8 levy				40,512.00		9,888.92				50,400.92	53,439
Property sale levy						8,708.80				8,708.80
Circuit office expenses				4,350.75						4,350.75	3,587
Other outgoings				7,149.44		706.17	19.49		3.27	7,879.37	7,707
Total expenditure				273,427.86		53,053.89	1,656.42		3.27	328,141A4	261,214
Gains/(losses) on monetary	investments						7.91	—	84.12 -	92.03	205
Gains/(losses) on investment	properties
Net income/-expenditure				68,721.43		11,567.19	5.29		54.87 -	57,203.82	37,129
Transfers between funds				64,444.95		64,400.00	15.70		29.25 -	0.00
Other gains
Net movementin		funds		4,276.48	-	52,832.81	10.41		84.12 -	57,203.82	37,129
Total funds brought fonuard				1,799,032.91		333,916.38	7,40046		1,343.91	2,141,693.66	2,178,822
Total funds	carried	forward		1,794,756.43		281,083.57	7,390.05		1,259.79	2,084,489.84	2,141,693

					Notes to		Circuit Model
					the	General Fund	Trust Fund	Restricted	Endowment
					accounts	(Unrestricted)	(Unrestricted)	Funds	Funds	Total	2021
						6	6	E	6
Fixed Assets
Manses	&equipment					835,000.00				835,000.00	&35,000
Investment properties						934,558.00				934,558.00	934,558
Investments								123.15	1,255.00	1,378.15	1,485
		Total	fixed	assets		1,769,558.00	0.00	123.15	1,255.00	1,770,936.15	1,771,043
Current	Assets
Debtors	and prepayments				10	13,602.31				13,602.31	14,722
Loans by the		Circuit to churches			10		119,488.00			119,4S&.00	86,138
Deposits	with	TMCP					161,595.58	7,256.78	4.79	168,857.13	255,024
Deposits	with	CFB				7,093.39				7,093.39	9,924
Deposits	with	HSBC				31,855.57		10.12		31,865.69	22,&99
		Total current		assets		52,551.27	281,0&3.56	7,266.90	4.79	340,906.52	388,707
Current	liabilities
Creditors	(due in under		1 year)			27,352.83				27,352.83	18,057
		Total current liabi%ties				2T,352.83	0.00	0.00	0.00	27,352.&3	18,05T
		Net current		assets		25,198.44	281,083.56	7,266.90	4.79	313,553.69	370,650
Total assets		less current liabilities
						1,794,756.44	281,083.56	7,390.05	1,259.79	2,084,489.84	2,141,693
Funds ofthe		Circuit
General	Fund	(Unrestricted)				1,794,756.43				1,794,756.43	1,799,033
Circuit Model		Trust Fund
(Unrestricted)							281,083.57			281,083.57	333,917
	Total Unrestricted			Funds						2,075,840.00	2,132,950
Restricted Funds								7,390.05		7,390.05	7,400
Endowment Funds									1,259.79	1,259.79	1,343
			Total	Funds		1,794,756.43	281,083.57	7,390.05	1,259.79	2,084,489.84	2,141,693

Notes to	the financial statements
1 Accounting 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, 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 (FRS102)"(as amended for		accounting
	periods commencing from 1 January 2016).The Circuit is a trust as defined by FRS 102.
	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 K.
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 for any		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 a specified purposes.					4.
	Endowment funds which are also held for specified purposes. Details of Restricted	and
	Endowment Funds are disclosed in the final note to these 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 sufficient
	reliability.
Expenditure
	Expenditure is recognised when a liability is incurred, or a 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 fixed assets other than buildings are written off over 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 2285,000. 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 Blackwell Church Hall —which is shown at
	insured value when it was transferred to the Circuit during the year to 31stAugust
	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 or fair 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 or losses on revaluation				at
	the year end are shown in the SOFA.

Debtors	and Prepayments	and Prepayments
	This is mainly in respect of Ministers' Stipends and buildings insurance premiums, both of
	which are paid in advance, plus various other smaller prepayments.
Creditors
	Creditors include sundry expenses accrued, and the 1st quarter 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 is a legally enforceable right 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 carried 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 of impairment at each reporting date. Financial assets are impaired
	where there is objective evidence that, as a resulf 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 impairment loss arising from an event occurring affer 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 for the year.
	Derecognition offinancial assets
	Financial assets are derecognised only when the contractual rights to the cash flows 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.
	Basic financial liabilities
	Basic financial 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 amortised.
	Debt instruments are subsequently carried at amoitised 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 classified as current
	liabilities ifpayment is due within one year or less. 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 or cancelled.
Taxation
	The Circuit is exempt from corporation tax on its charitable activities.
Investments
	Investments are stated at deemed market value.

N	otes to the financial statements -continued
2	Payment to Trustees
	There were no payments made to trustees 6 below. However there were expenses of Number ofTrustees paid expenses Total amount paid	for additional trustees.		services provided to the Circuit, 2022e 11 610,341			excluding	stipends	which are included in note 2021e 8 E6,649
	Expense payments primarily relate to reimbursement		for	telephone,	travel	and computing	costs
3	Fees for examination ofthe financial statements
						2022			2021
	Independent examiner's fees for reporting financial statements	on the				F1,398			E1,212
	Other fees (eg: advice, accountancy services) paid to the independent examiner.					NIL			NIL
4	Paid employees
	Staff Costs paid during the year were:					2022			2021
	Gross wages, salaries and benefits in kind				6116,914				E113,800
	Employer's National Insurance costs					F9,815			89,170
	Pension costs				221,433				E21,103
	Total staff costs				6148,162				F144,073
	Average number offull-time equivalent
	employees in the year were:

				Fixtures,
				fittings and
			Manses	equipment	Total
			6
Cost or valuation
Balance brought	forward		835,000	3,589	838,589
Transfer from investment		assets			0
Revaluations					0
Transfer to investment assets					0
Balance carried forward			835,000	3,589	838,589
Accumulated depreciation
Balance brought	forward			3,589	3,589
Charge for year					0
Revaluations					0
Disposals					0
Balance carried forward				3,5&9	31589
Net book value
Brought forward			835,000	0	835,000
Balance carried forward			835,000	0	835,000

7 investment as	sets
		Dwellings-	Former	fittings
		previously	Church	and
		Manses	Hall	equipment		Total
Cost orvaluation
Balance brought	forward	510,000	424,558		0	934,558
Transfer from Manses						0
Revaluations						0
Transfer to Manses						0
Balance carried forward		510,000	424,558		0	934,558
Net book value
Brought forward		510,000	424,558		0	934,558
Balance carried forward		510,000	424,558		0	934,558