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2020-08-31-accounts

REGISTERED CHARITY NUMBER: 1150295

Report of the Trustees and

Financial Statements

for the Year Ended 31 August 2020

for

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Contents of the Financial Statements FOR THE YEAR ENDED 31 AUGUST 2020

Page
Reference and Administrative Details 1
Report of the Trustees 2 to 10
Report of the Independent Auditors 11 to 12
Statement of Financial Activities 13 to 14
Balance Sheet 15
Cash Flow Statement 16
Notes to the Cash Flow Statement 17
Notes to the Financial Statements 18 to 35
Appendix 36 to 39

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Reference and Administrative Details FOR THE YEAR ENDED 31 AUGUST 2020

TRUSTEES See Appendix PRINCIPAL ADDRESS Churchways Avenue Horfield Bristol BS7 8SN REGISTERED CHARITY 1150295 NUMBER INDEPENDENT AUDITORS Haines Watts Partnership (Bristol) Limited Bath House 6-8 Bath Street Bristol BS1 6HL

Page 1

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2020

The trustees present their report with the financial statements of the charity for the year ended 31 August 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

The Circuit’s Aims as a Charity

The core purpose of the Bristol and South Gloucestershire Methodist Circuit is to be a Discipleship movement shaped for mission. These are defined by the Methodist Church Act 1976 s.4 in the context of the Circuit these are Worship, Learning and Caring, Evangelism and Service. To enable that movement to progress the Circuit enables the provision of sacred spaces (buildings) for prayer and contemplations and for social care and outreach projects.

The Circuit also supports other charities in the UK, overseas, financially and with prayer.

Significant activities

The Circuit invites and supports both lay volunteers and ordained ministers and enables them in their work. As a result the Circuit provides spiritual guidance to the Methodist congregations throughout the Bristol and South Gloucestershire area.

The key elements of the Circuit Medium to Long Term Strategy

Having set up the 'Our Calling' Groups during 2012/13 the key elements of these groups are as follows:

Worship Increase awareness of God's presence and celebrate God's love.
Learning and Caring Help people to learn and grow as Christians, through mutual support and
care.
Service Be a good neighbour to people in need and to challenge injustice.
Evangelism Make more followers of Jesus Christ
Two other groups deal with:
Resources Dealing with people, finance and property
Communication and Promoting good communication across the circuit and making links between
Engagement groups and outside associations and wider community.

The Circuit operates the Bristol Methodist Centre, looking after homeless and vulnerable people. It has set up The Ark Pioneer Project, outreach workers and converted vans, which can assist and support churches and outreach events anywhere within the Circuit with any task and also operate independently interacting with people of any faith and none at festivals and shows and in shopping centres.

The Circuit also has a chaplaincy service and this is well used by various employers within the area covered by the Circuit.

How does the Circuit Measure the success of its Strategy?

The Circuit measures the outcome of its policy by monitoring activities through its Circuit Resources Group and Circuit Council.

Page 2

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2020

OBJECTIVES AND ACTIVITIES Public benefit

Social investments

Financial investments are held either by Trustees for Methodist Church Purposes, TMCP, or by the Methodist Church Central Finance Board. Investment properties such as surplus manses are sometimes rented at best value rent rather than market value if there is a case of need or hardship.

Grantmaking

Volunteers

The Trustees would like to acknowledge the work carried out across the circuit by Local Preachers, and Circuit Officers for the work they do supporting and running the church, as well as in all of its congregations in leading worship, providing pastoral care and maintaining church premises.

Page 3

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2020

ACHIEVEMENT AND PERFORMANCE Charitable activities

The Circuit also supports other charities in the UK and overseas financially and with prayer.

Achievements against objectives set

Objective: Training & Support

The Circuit delivered training sessions for:

Objective: Eco-Church/Circuit

We aim to reduce our carbon footprint and energy consumption in line with the Connexional recommendations "Hope in God's Future - Christian Discipleship in the context of Climate Change"

Eco-Circuit - is an A Rocha UK award scheme for churches in England and Wales "who want to demonstrate that the gospel is good news for God's earth".

Objective: Chaplaincy

The Circuit provides chaplaincy to:

Page 4

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2020

Objective: Supporting the Homeless & Vulnerable

The Bristol Methodist Centre provides support and shelter to the most vulnerable across the city.

Objective: Community Outreach

Due to the Pandemic much of the normal activities could not happen. The Ark Bus team supported:

Faithspace supported:

Objective: Dementia Awareness

The Circuit continues to provide a monthly service at Shortwood MC suitable for those who have dementia and their carers. (NB. this was not possible during lockdown)

Covid 19

In the first quarter of 2020 the Covid-19 pandemic resulted in governments across the World introducing stringent measures to prevent the spread of the coronavirus disease. These measures included population 'lock-down' and led to a significant reduction in economic activity which in turn has led to significant falls in global markets, including the FTSE100. On 31 December 2019 a limited number of cases of an unknown virus had been reported to the World Health Organisation. There was no explicit evidence of human-to-human transmission at that date. The subsequent spread of the virus and its identification as a new coronavirus does not provide additional evidence about the situation that existed at 31 August 2019, and it is therefore a non-adjusting event.

The impact of the virus is likely to affect the income generated by the charity, and therefore may affect its ability to maintain adequate free reserves. The Trustees have prepared forecasts of income and expenditure for the period to 31 August 2022 and subjected these forecasts to sensitivity analysis which shows that they have sufficient reserves to be able to continue for the foreseeable future.

Where necessary staff were furloughed under the job retention scheme. No staff suffered financial loss throughout the pandemic.

Page 5

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2020

FINANCIAL REVIEW

Principal funding sources

The Circuit has the following principal sources of funds:

These sums are used to administer the Circuit and to provide grants to Churches and individuals in the Circuit so that they may embark on or continue with projects that fulfil the mission of the Circuit by bringing more people to Christ or by providing facilities that might enable this to happen. The work of the Bristol Methodist Centre is a key activity of the Circuit and is administered in a separate restricted fund.

Investment policy and objectives

To comply with Methodist Standing Orders, monies for long term investment are lodged with the Trustees for Methodist Church Purposes (TMCP). TMCP acts as custodian trustee for all real estate held by Circuits and for all large (over £20K) bequests and for the proceeds of sale of any property formerly owned by the Circuit. These sums are invested in unitised investments or held on deposit. The investment returns are close to tracking the movements in the FTSE 100 index. The deposit income mirrors the deposit rates elsewhere. The Circuit's investment policy is aligned with that of the Central Finance Board (CFB) and TMCP because these organisations take into consideration the social, environmental and ethical considerations, both negatively and positively, that make investments suitable to the Methodist Church.

Short term deposits are lodged directly with the CFB and attract good rates of interest.

There are no bench marks for the expected returns or appreciation on investments at TMCP and CFB. It is the Circuit's policy to manage the cash and investment resources of the circuit so that a rate of return on investment, both by way of dividend and capital appreciation, is obtained at least as good as market rate considering the Circuit's low appetite for risk.

Reserves policy

General Fund

Circuit policy is to maintain a balance in the General Fund (free reserves), which is equivalent to at least one third of the annual resources expended as shown in the Statement of Financial Activities excluding grants, letting professional fees and repairs on let properties in the Circuit's most recent audited accounts.

This equates to approximately £320,000 based on the general fund resources expended per the accounts. At the year end, free reserves were £223,749. The trustees are discussing how to bring the reserves in line with the reserves policy.

Model Trust fund

The balance held in the Circuit's Model Trust is largely designated for expenditure on various projects approved by the Circuit Meeting. The authority of the Circuit Meeting will be required to fund expenditure from the balance not currently designated.

Property Funds

The balance held in the property funds represent the value of various properties owned by the Circuit. If properties are sold, the net proceeds of sale will be transferred to the Model Trust Fund and will be used as directed by the Circuit Meeting.

As part of the Circuit Reserves policy the Circuit continued to rent seven manses on short hold tenancies.

Page 6

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2020

FINANCIAL REVIEW

Going concern

The trustees have considered the impact that the Covid-19 pandemic will have on the Circuit's current and future financial position. The Circuit is taking the following steps to mitigate the threats that Covid-19 may pose to the organisation:

The trustees consider that the Circuit will continue as a going concern for a period of at least 12 months from the date on which these financial statements are approved as the circuit holds sufficient reserves.

The trustees therefore consider it appropriate to adopt the going concern basis of preparation of the accounts, as detailed in note 1 to the financial statements.

Principal risks facing the charity

Safeguarding Concerns - There were no safeguarding incidents that needed referring to LADO/Police/charity commission during this period.

We have one Safeguarding Contract in place and this is regularly monitored at both local and circuit level.

The Circuit continues to take safeguarding of children and vulnerable adults seriously, holding an annual training session for all church safeguarding officers.

There is an ongoing funding risk for The Methodist Centre project, provision has been made for any deficit to be covered by the circuit, if grant funding cannot be sourced.

The Trustees have assessed the major risks to which the Circuit is exposed, in particular those related to the operations and finances of the Circuit, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks. These major risks are considered to be Covid-19, future income - Church Assessments, controls on payments, safeguarding, circuit property, employees and ministerial staff. Plans are in place to mitigate these risks and the Circuit are in the process of collating an official risk register to be reviewed on a regular basis.

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The governing document for the Circuit is the Deed of Union (1932) and Methodist Church Act (1976).

Detailed governance arrangements are outlined within the Constitutional Practice and Discipline of the Methodist Church by order of the annual conference (CPD).

Day to day management of the Circuit is undertaken by the Circuit Stewards along with the Circuit Council and the Circuit Resource Committee.

Charity constitution

The Circuit Meeting is the managing trustees for the Circuit and is constituted to Methodist Standing Order 500-584 (Constitutional Practice & Disciple of The Methodist Church)

Page 7

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT Recruitment and appointment of new trustees

Ministerial appointments are made annually by The Methodist Conference and are trustees.

Three Lay Appointments to the Circuit Meeting are elected by local churches: the Treasurer, a Church Steward and one other. In addition the following are appointed as circuit officers: Circuit Stewards, Lay Employees, Circuit Treasurer and other voluntary workers within the Circuit with specific responsibilities.

Organisational structure

The Bristol and South Gloucestershire Methodist Circuit was formed in 2008 and covers both the City of Bristol and the South Gloucestershire Local Authorities. The structure for the current year was headed up with a Circuit Meeting chaired by the Superintendent of the Circuit, to which 3 members of each church, the Treasurer, a Church Steward and one other were appointed. In addition the following were appointed: Circuit Presbyters, Circuit Stewards, Lay employees and other, voluntary, workers within the Circuit with specific responsibilities. All members of the Circuit Meeting are Managing Trustees of the Circuit. The Circuit Council also met to make recommendations to the Circuit Meeting for its approval or rejection.

The Circuit staff consists of 10 Presbyters, 2 Authorised Ministers (not on payroll)) and 1 Methodist Deacon. The Circuit has 6 Lay employees in Mission, 4 office staff, 3 other workers and 8 support workers (BMC).

The purposes of the Methodist Church are, and shall be deemed to have been since the date of union the advancement of: (a) The Christian faith in accordance with the doctrinal standards and the discipline of the Methodist Church: (b) Any charitable purpose for the time being of any connexional, district, circuit, local or other organisation of the Methodist Church:

(c) Any charitable purpose for the time being of any society or institution subsidiary or ancillary to the Methodist Church: Any purpose for the time being of any charity being a charity subsidiary or ancillary to the Methodist Church.

Related and connected parties

The Circuit works closely with The Bristol Methodist District, the Regional Learning Network and John Wesley's Chapel ('The New Room'). The Circuit is a member of Churches Together in Greater Bristol, and also works with the United Reform Church, Anglican diocese, and Connexional Methodist Church.

None of the above are considered related parties.

Page 8

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

Risks are managed by being aware of them, quantifying their impact not only in costs terms but in possible reputational or structural damage, laying them off through an insurer and minimising them by not taking them or by setting up control systems that timeously report any significant change in the risk.

Policies:

During the course of the year the Circuit agreed the following policies:

• Grants • Health and Safety (General) • Home working policy • Honoraria Payment to volunteers • Internal Stationing • Live streaming policy • Loans • Lone working • Manse (repairs, expenditure)

Guidance notes:

Risk Management:

Page 9

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT

FUNDS HELD AS CUSTODIAN FOR OTHERS

Funds are held on behalf of St Andrews Church Filton, £34,325 (2019 - £34,325)

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the board of trustees on 24 June 2021 and signed on its behalf by:

Rev D R Alderman - Trustee

Page 10

Report of the Independent Auditors to the Trustees of Bristol and South Gloucestershire Circuit of the Methodist Church

Opinion

We have audited the financial statements of Bristol and South Gloucestershire Circuit of the Methodist Church (the 'charity') for the year ended 31 August 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the 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 (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis for 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 Auditors' 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

However, not all future events or conditions can be predicted. The Covid-19 viral pandemic is one of the most significant economic events for the UK with unprecedented levels of uncertainty of outcomes. It is therefore difficult to evaluate all of the potential implications on the charity. The Trustees' view on the impact of Covid-19 is disclosed in the accounting policies and in the Trustees' Report.

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 Report of the Independent Auditors 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.

In connection with our audit of the financial statements, 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.

Page 11

Report of the Independent Auditors to the Trustees of Bristol and South Gloucestershire Circuit of the Methodist Church

Matters on which we are required to report by exception

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:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees 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.

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the 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 a Report of the Independent Auditors 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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 auditors' 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 and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Haines Watts Partnership (Bristol) Limited Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 Bath House 6-8 Bath Street Bristol BS1 6HL

24 June 2021

Page 12

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Statement of Financial Activities FOR THE YEAR ENDED 31 AUGUST 2020

Unrestricted
funds
Notes
£
INCOME AND
ENDOWMENTS FROM
Donations and legacies
2
11,763
Charitable activities
5
Management of the Circuit
870,657
Other trading activities
3
-
Investment income
4
106,527
Other income
-
Total
988,947
EXPENDITURE ON
Charitable activities
6
Management of the Circuit
1,030,723
Bristol Methodist Centre
-
Total
1,030,723
Net gains/(losses) on
investments
130,000
NET
INCOME/(EXPENDITURE)
88,224
Transfers between funds
21
(561,436)
Other recognised gains/(losses)
Gains/(losses) on revaluation of
fixed assets
249,436
Net movement in funds
(223,776)
RECONCILIATION OF
FUNDS
Total funds brought forward
9,702,598		 Circuit
Model

Trust
fund
£
-
-
-
3,403
-
3,403
212,610
-
212,610
(9,073)
(218,280)
599,436
-
381,156
50,077		 Restricted
funds
£
189,827
13,000
16,515
2,276
-
221,618
-
193,679
193,679
(896)
27,043
(38,000)
-
(10,957)
1,443,897		 2020

Total
funds
£
201,590
883,657
16,515
112,206
-
1,213,968
1,243,333
193,679
1,437,012
120,031
(103,013)
-
249,436
146,423
11,196,572		 2019
Total
funds
£
87,368
877,401
27,112
117,335
82,524
1,191,740
1,127,236
185,882
1,313,118
(218,369)
(339,747)
-
(939,449)
(1,279,196)
12,475,768

The notes form part of these financial statements

Page 13

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Statement of Financial Activities FOR THE YEAR ENDED 31 AUGUST 2020

Unrestricted
funds
Notes
£
TOTAL FUNDS CARRIED
FORWARD
9,478,822		 Circuit
Model

Trust
fund
£
431,233		 Restricted
funds
£
1,432,940		 2020

Total
funds
£
11,342,995		 2019
Total
funds
£
11,196,572

The notes form part of these financial statements

Page 14

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Balance Sheet 31 AUGUST 2020

Unrestricted
funds
Notes
£
FIXED ASSETS
Tangible assets
15
6,080,000
Investments
Investments
16
-
Investment property
17
3,155,000
9,235,000
CURRENT ASSETS
Debtors: amounts falling due
within one year
18
259,933
Cash at bank
19
298,422
558,355
CREDITORS
Amounts falling due within one
year
20
(314,533)
NET CURRENT ASSETS
243,822
TOTAL ASSETS LESS
CURRENT LIABILITIES
9,478,822
NET ASSETS
9,478,822
FUNDS
21
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Circuit
Model

Trust
fund
£
-
76,311
-
76,311
-
681,770
681,770
(326,848)
354,922
431,233
431,233		 Restricted
funds
£
1,233,099
51,016
-
1,284,115
89,711
59,793
149,504
(679)
148,825
1,432,940
1,432,940		 2020

Total
funds
£
7,313,099
127,327
3,155,000
10,595,426
349,644
1,039,985
1,389,629
(642,060)
747,569
11,342,995
11,342,995
9,910,055
1,432,940
11,342,995		 2019
Total
funds
£
7,014,350
129,404
3,644,000
10,787,754
439,881
488,613
928,494
(519,676)
408,818
11,196,572
11,196,572
9,752,675
1,443,897
11,196,572

The financial statements were approved by the Board of Trustees and authorised for issue on 24 June 2021 and were signed on its behalf by:

D R Alderman - Trustee

The notes form part of these financial statements

Page 15

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Cash Flow Statement FOR THE YEAR ENDED 31 AUGUST 2020

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash used in operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Sale of investment property
Investment income
Net cash provided by investing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 2020
£
(92,378)
(92,378)
(79,564)
611,108
112,206
643,750
551,372
488,613
1,039,985		 2019
£
(216,280)
(216,280)
-
-
117,335
117,335
(98,945)
587,558
488,613

The notes form part of these financial statements

Page 16

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Notes to the Cash Flow Statement FOR THE YEAR ENDED 31 AUGUST 2020

1. RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING
ACTIVITIES
2020 2019
£ £
Net expenditure for the reporting period (as per the Statement of
Financial Activities) (103,013) (339,747)
Adjustments for:
Depreciation charges 30,251 30,251
Investment income (112,206) (117,335)
Revaluation of investment properties (130,000) 221,585
Revaluation of investment assets 9,969 (3,216)
Decrease/(increase) in debtors 90,237 (26,905)
Increase in creditors 122,384 19,087
Net cash used in operations **(92,378) ** (216,280)

2. ANALYSIS OF CHANGES IN NET FUNDS

Net cash
Cash at bank
Total		 At 1.9.19
£
488,613
488,613
488,613		 Cash flow
£
551,372
551,372
551,372		 At 31.8.20
£
1,039,985
1,039,985
1,039,985

The notes form part of these financial statements

Page 17

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Notes to the Financial Statements FOR THE YEAR ENDED 31 AUGUST 2020

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view'. This departure has involved following the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland 2015 (FRS 102) (effective 1 January 2019) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The accounts have been prepared on the assumption that the charity is able to continue as a going concern. However, the Covid-19 pandemic is likely to have a profound impact on the global economy, and may in turn affect the charity. The trustees have considered the impact of this issue on the Circuit's current and future financial position. The charity holds unrestricted, general reserves of £223,749 and designated reserves that can be drawn down, if necessary, of £451,306. There is an unrestricted cash balance of £980,192. The trustees consider that the charity has sufficient cash reserves to continue as a going concern for a period of at least 12 months from the date on which these financial statements are approved.

Critical accounting judgements and key sources of estimation uncertainty

The following judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the financial statements:

Freehold property shown at fair value Investment property shown at fair value

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include:

Property valuation provided by the surveyor is reasonable, subject to adjustments made.

Income

Income is brought into account when there is entitlement and the amount is reliably measurable once it is more than likely than not that the economic benefit of the income will be forthcoming.

Individual amounts categorised as Other Income in the SOFA will be shown separately if they are considered material.

continued...

Page 18

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2020

1. ACCOUNTING POLICIES - continued

Income

Where the Circuit acts as agent in the collection from churches and payment over of their contributions to various funds controlled and administered by The Methodist Church -'Connexional Funds', the transactions are not reflected in the SOFA because they are the income of either the Connexion or churches, as appropriate.

In accordance with the charities SORP (FRS102), the time of volunteers is not recognised. Further information on this matter is provided in the Trustees' Annual Report. If goods are donated, a value will be shown in the financial statements where the value is considered material.

Grants

Grants, including grants for the purchase of fixed assets, are recognised in full in the Statement of Financial Activities in the year in which they are receivable, where all conditions associated with the grant have been met. Where conditions exist which remain unsatisfied, the grant is treated as a liability until the conditions have been substantially met.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Governance costs

Governance costs comprise all costs involved in the public accountability of the charity and its compliance with regulation and good practice.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property - 10% on cost Fixtures, fittings and equipment - 33% on cost Motor vehicles - 33% on cost

The freehold property (with the exception of the Bristol Methodist Centre) is shown in the accounts at its fair value. The Bristol Methodist Centre property is considered different in nature to the other properties and the SORP guidance, paragraph 12.14, on treatment of specialist buildings has been applied. The Centre is valued at the deemed cost at donation to the Circuit in 2015. The cost of improvements have been capitalised and the property has not been revalued.

No depreciation is provided for on the fixed asset properties (with the exception of improvements to the Methodist Centre which is depreciated as shown above) as the trustees consider the current residual fair value of the buildings to be not less than its current value. Any depreciation would not be material. The properties have been reviewed for impairment.

continued...

Page 19

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2020

1. ACCOUNTING POLICIES - continued

Tangible fixed assets

The properties included in tangible fixed assets are revalued annually based on periodic professional valuations as adjusted by the trustees using suitable indices in the intervening periods. Unrealised gains on revaluation are taken to the Revaluation Reserve in accordance with the SORP (FRS 102).

Investment property

Properties are recognised as investment properties when they are no longer required as manses. Investment properties are revalued annually based on periodic professional valuations as adjusted by the trustees using suitable indices in the intervening periods with changes in fair value recognised in 'net gains / (losses) on investments' in the SOFA.

Taxation

The charity is exempt from tax on its charitable activities.

VAT

Since the Circuit is not VAT registered, all input VAT is charged with the expenses to which it refers.

Debtors

Debtors are measured on initial recognition at settlement amount after any amounts advanced by the charity. Subsequently, they are measured at the cash or other consideration expected to be received.

Debtors include the payment of the September stipend in advance in August.

Cash and short term investments

Cash at bank is held to meet short-term cash commitments as they fall due rather than for investment purposes and includes all cash equivalents held in the form of short-term highly liquid investments. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value.

Creditors

The charity has creditors which are measured at settlement amounts.

Fund accounting

Unrestricted funds are incoming resources receivable or generated for the objects of the Circuit without further specified purpose. They are available as general funds and can be used in accordance with the charitable objectives at the discretion of the trustees.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Expenditure which meets the criteria is charged to the fund together with a fair allocation of support costs, where appropriate.

Endowment funds represent restricted gifts, the capital normally being unavailable for spending.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

continued...

Page 20

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2020

1. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits

Most ordained presbyters are members of the Methodist Ministers' Pension Scheme (MMPS). This is a defined benefit scheme. The Supreme Court held in 2014 that Methodist ministers (which term includes presbyters and deacons) are not employees of the Church. For simplicity, however, when dealing with National Insurance Contributions, the terms 'employer' and 'employee' are used as they would be in an employing body.

The scheme is a multi-employer scheme as described in Section 28 of FRS 102 as it is not possible to attribute the scheme's assets and liabilities to specific employers. This means that contributions are accounted for as if the scheme were a defined contribution scheme.

Lay employees are contractually employees and have the option of joining a multi-employer defined contribution scheme operated by TPT Retirement (formerly The Pensions Trust)

The Connexion accounts for both pension schemes and shows the figures in the annual Methodist Church in Great Britain accounts. The MMPS is in deficit but a plan for removal of the deficit has been proposed and is being implemented.

Donated goods

Donated goods, services or facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. On receipt, donated services and facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Ministers’ manse costs

The Circuit is required to provide accommodation for each minister in the Circuit and their families and this is seen as a benefit to the Circuit. Ministers are expected to occupy the manse provided for them. The Circuit bears the cost of repairs, maintenance, buildings insurance, council tax and water charges. These figures are not separately disclosed as benefits-in-kind for ministers as HMRC does not seek to tax these receipts in the hands of ministers.

Financial instruments

The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. Financial instruments are recognised when the charity becomes party to the contractual provisions of the 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 off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost. Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

continued...

Page 21

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2020

1. ACCOUNTING POLICIES - continued

Ministers’ manse costs

Basic financial liabilities, including trade and other creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Financial liabilities are derecognised when, and only when, the charity's contractual obligations are discharged, cancelled, or they expire.

2. DONATIONS AND LEGACIES

Unrestricted
funds
£
Donations
4,321
Legacies
-
Grants
7,442
11,763		 Restricted
funds
£
61,658
76,000
52,169
189,827		 2020
Total
funds
£
65,979
76,000
59,611
201,590		 2019
Total
funds
£
47,368
-
40,000
87,368

Grants received, included in the above, are as follows:

Bristol District
Connexion
Other
Coronavirus Job Retention Scheme
Bristol City Council (Coronavirus support)
The Leonard Laity
Quartet		 2020
£
10,000
-
14,942
17,619
10,000
3,250
3,800
59,611		 2019
£
20,000
18,000
2,000
-
-
-
-
40,000

3.

OTHER TRADING ACTIVITIES

Unrestricted
Restricted
funds
funds
£
£
Shop income
-
16,515		 2020
Total
funds
£
16,515		 2019
Total
funds
£
27,112

continued...

Page 22

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2020

4. INVESTMENT INCOME

Unrestricted
funds
£
Property rental
105,288
TMCP and CFB
4,642
109,930
5.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Assessment or share
Management of the Circuit
Lettings
Management of the Circuit
Services provided
Management of the Circuit		 Restricted
funds
£
-
2,276
2,276		 2020
Total
funds
£
105,288
6,918
112,206
2020
£
857,842
12,815
13,000
883,657		 2019
Total
funds
£
111,077
6,258
117,335
2019
£
844,080
20,321
13,000
877,401

Assessment on churches

The Circuit comprises 38 churches and each is assessed for a contribution to meet the overall net costs of the Circuit. In making its assessment the budgeted income from investment income and property letting, confirmed external grants and contribution from churches towards the cost of lay employees is considered. The Circuit aims to cover all its core costs from the assessment.

An Assessment on churches is annually determined by the Circuit using a formulaic method which takes into account the relative number of members in each church and its freewill giving plus gift aid receipts. Assessments on churches are monthly in advance and are treated as pre-payments on a receivable basis. If any church has not paid its assessment by the due date the sum in question is treated as a debtor.

6. CHARITABLE ACTIVITIES COSTS

Management of the Circuit
Bristol Methodist Centre		 Direct
Costs (see
note 7)
£
1,237,113
193,679
**1,430,792 **		 Support
costs (see
note 9)
£
6,220
-
6,220		 Totals
£
1,243,333
193,679
1,437,012

continued...

Page 23

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2020

7.
DIRECT COSTS OF CHARITABLE ACTIVITIES
Staff costs
District assessment and levy
CPF levy
Office
Manse costs
Expenditure on other circuit property
Other expenses
Depreciation
8.
GRANTS PAYABLE
Management of the Circuit
The total grants paid to institutions during the year was as follows:
Other
St Andrews Church, Filton		 2020
£
731,034
172,610
212,120
31,389
132,155
31,713
89,520
30,251
1,430,792
2020
£
-
2020
£
-
-
-		 2019
£
691,053
181,244
17,578
34,161
151,138
29,970
118,591
30,251
1,253,986
2019
£
53,000
2019
£
3,000
50,000
53,000		 2019
£
691,053
181,244
17,578
34,161
151,138
29,970
118,591
30,251
1,253,986
2019
£
53,000
2019
£
3,000
50,000
53,000
2019
£
3,000
50,000
53,000

9. SUPPORT COSTS

Management of the Circuit

Governance costs £ 6,220

continued...

Page 24

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2020

9. SUPPORT COSTS - continued

Support costs, included in the above, are as follows:

9. SUPPORT COSTS - continued
Support costs, included in the above, are as follows:
2020 2019
Management
of the Total
Circuit activities
£ £
Auditors' remuneration 6,220 **6,132 **
10. AUDITORS' REMUNERATION
2020 2019
£ £
Fees payable to the charity's auditors for the audit of the charity's financial
statements 6,220 6,132

11. TRUSTEES' REMUNERATION AND BENEFITS

The Circuit employs lay staff involved in both administration and mission work, some of whom are trustees by virtue of their position. The Circuit also pays the stipends of the Circuit Superintendent and presbyters. Costs of employment are reflected in note 12.

Trustees' expenses

Trustee expenses of £68 paid to 2 trustees for mileage (2019 - nil).

12. STAFF COSTS

STAFF COSTS
Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Circuit clergy
Circuit other staff
Bristol Methodist Centre		 2020
£
585,277
47,975
97,782
731,034
2020
11
13
8
32		 2019
£
558,769
44,444
87,840
691,053
2019
11
12
7
30

No employees received emoluments in excess of £60,000.

Page 25

continued...

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2020

13.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Circuit
Model
Unrestricted
Trust
Restricted
funds
fund
funds
£
£
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
15,277
-
72,091
Charitable activities
Management of the Circuit
864,401
-
13,000
Other trading activities
-
-
27,112
Investment income
111,920
4,176
1,239
Other income
145
11,001
71,378
Total
991,743
15,177
184,820
EXPENDITURE ON
Charitable activities
Management of the Circuit
1,058,877
68,359
-
Bristol Methodist Centre
-
-
185,882
Total
1,058,877
68,359
185,882
Net gains/(losses) on investments
(221,585)
1,240
1,976
NET INCOME/(EXPENDITURE)
(288,719)
(51,942)
914
Transfers between funds
86,000
(60,000)
(26,000)
Other recognised gains/(losses)
Gains/(losses) on revaluation of fixed assets
(939,449)
-
-
Net movement in funds
(1,142,168)
(111,942)
(25,086)
RECONCILIATION OF FUNDS
Total funds brought forward
As previously reported
9,895,544
162,019
1,468,983
Prior year adjustment
949,222
-
-
As restated
10,844,766
162,019
1,468,983
TOTAL FUNDS CARRIED FORWARD
9,702,598
50,077
1,443,897
Total
funds
£
87,368
877,401
27,112
117,335
82,524
1,191,740
1,127,236
185,882
1,313,118
(218,369)
(339,747)
-
(939,449)
(1,279,196)
11,526,546
949,222
12,475,768
11,196,572

Page 26

continued...

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2020

14. VOLUNTEERS

Every entity (Connexion, district, circuit and church) within the Methodist Church in the UK is heavily reliant on volunteers who contribute their skills, time and money in the furtherance of the work of the Church. In the Circuit the principal contribution is by serving on committees of the Circuit that deal with mission, manses, finance, policy, training and safeguarding. We are grateful to all of them for their help and commitment. No attempt has been made by this Circuit to value the non-monetary contributions to the Circuit in monetary terms.

15. TANGIBLE FIXED ASSETS

COST OR VALUATION
At 1 September 2019
Additions
Revaluations
At 31 August 2020
DEPRECIATION
At 1 September 2019
Charge for year
At 31 August 2020
NET BOOK VALUE
At 31 August 2020
At 31 August 2019		 Manses
£
5,751,000
79,564
249,436
6,080,000
-
-
-
6,080,000
5,751,000		 Bristol

Methodist
Centre
£
1,081,839
-
-
1,081,839
-
-
-
1,081,839
1,081,839		 Improvements
to
property
£
302,514
-
-
302,514
121,003
30,251
151,254
151,260
181,511

continued...

Page 27

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2020

15. TANGIBLE FIXED ASSETS - continued

COST OR VALUATION
At 1 September 2019
Additions
Revaluations
At 31 August 2020
DEPRECIATION
At 1 September 2019
Charge for year
At 31 August 2020
NET BOOK VALUE
At 31 August 2020
At 31 August 2019		 Fixtures,
fittings
and
equipment
£
17,821
-
-
17,821
17,821
-
17,821
-
-		 Motor
vehicles
£
35,335
-
-
35,335
35,335
-
35,335
-
-		 Totals
£
7,188,509
79,564
249,436
7,517,509
174,159
30,251
204,410
7,313,099
7,014,350

Manses were subject to valuation at 31 August 2020. The methods and significant assumptions used to ascertain the fair value of £6,080,000 are as follows:

Drive by valuation as at 31 August 2020 by Christophers Chartered Surveyors of £6,040,000 The deemed cost of the properties is £3,746,564.

16. FIXED ASSET INVESTMENTS

FIXED ASSET INVESTMENTS
TMCP
£
MARKET VALUE
At 1 September 2019 129,404
Revaluations **(2,077) **
At 31 August 2020 127,327
NET BOOK VALUE
At 31 August 2020 127,327
At 31 August 2019 129,404
There were no investment assets outside the UK.
Investments are held by TMCP in;
2020 2019

continued...

Page 28

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2020

16. FIXED ASSET INVESTMENTS - continued

£
Equity funds
9,352
Mixed funds
70,844
Fixed interest funds
26,824
Corporate bonds
20,307
127,327
17.
INVESTMENT PROPERTY
FAIR VALUE
At 1 September 2019
Disposals
Revaluation
At 31 August 2020
NET BOOK VALUE
At 31 August 2020
At 31 August 2019		 £
10,650
72,116
26,577
20,061
122,510
£
3,644,000
(619,000)
130,000
3,155,000
3,155,000
3,644,000

Investment properties were subject to trustee valuation at 31 August 2020. The methods and significant assumptions used to ascertain the fair value of £3,155,000 are as follows:

Drive by valuation as at 31 August 2020 by Christophers Chartered Surveyor of £3,155,000.

18. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Other debtors
Amounts due from other funds
Prepayments and accrued income		 2020
£
61,488
136,522
151,634
349,644		 2019
£
93,393
165,500
180,988
439,881

continued...

Page 29

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2020

19. CASH AT BANK

CASH AT BANK
Bank account
TMCP and CFB
Client account
Total
Bank account
TMCP and CFB
Client account
Total		 Benevolent
fund
£
445
-
-
445		 General
fund
£
9,370
273,678
-
283,048
Training
fund
£
2,096
-
-
2,096		 Faithspace
fund
£
14,688
-
-
14,688
Bristol
Methodist
Centre
£
57,023
229
-
57,252		 Circuit
Model Trust
fund
£
-
247,012
434,758
681,770
2020
Total
funds
£
84,308
520,919
434,758
1,039,985		 Ark Project
fund
£
686
-
-
686
2019
Total
funds
£
65,425
423,188
-
488,613

The client account reflects the property sale proceeds held by the solicitor which was transferred to the TMCP account after the year end.

20. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Other creditors
Grants payable
Amounts owing to other funds
Accrued expenses
Assessments received in advance		 2020
£
194,386
84,325
136,522
46,104
180,723
642,060		 2019
£
54,120
84,325
165,500
17,050
198,681
519,676

continued...

Page 30

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2020

21. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Faithspace fund
Chaplaincy fund
Circuit Model Trust fund
Ark Project fund
Chantry Road Repairs fund
Manses and properties fund
Revaluation Reserve
Restricted funds
Benevolent fund
Training fund
Bristol Methodist Centre
BMC property fund
Chaplaincy funding
TOTAL FUNDS		 At 1.9.19
£
177,996
8,427
(13,266)
50,077
74,441
60,000
7,311,000
2,084,000
9,752,675
445
2,096
344,517
1,081,839
15,000
1,443,897
11,196,572		 Net
movement

in funds
£
45,753
5,037
(42,166)
(218,280)
(50,400)
-
130,000
249,436
119,380
-
-
4,043
-
23,000
27,043
146,423		 Transfers

between

funds
£
-
-
38,000
599,436
-
(60,000)
(539,436)
-
38,000
-
-
-
-
(38,000)
(38,000)
-
At
31.8.20
£
223,749
13,464
(17,432)
431,233
24,041
-
6,901,564
2,333,436
9,910,055
445
2,096
348,560
1,081,839
-
1,432,940
11,342,995

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Faithspace fund
Chaplaincy fund
Circuit Model Trust fund
Ark Project fund
Manses and properties fund
Revaluation Reserve
Restricted funds
Bristol Methodist Centre
Chaplaincy funding
TOTAL FUNDS		 Incoming
resources
£
971,799
13,203
-
3,403
3,945
-
-
992,350
198,618
23,000
221,618
1,213,968		 Resources
expended
£
(926,046)
(8,166)
(42,166)
(212,610)
(54,345)
-
-
(1,243,333)
(193,679)
-
(193,679)
(1,437,012)		 Gains and
losses
£
-
-
-
(9,073)
-
130,000
249,436
370,363
(896)
-
(896)
**369,467 **		 Movement
in funds
£
45,753
5,037
(42,166)
(218,280)
(50,400)
130,000
249,436
119,380
4,043
23,000
27,043
146,423

continued...

Page 31

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2020

21. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General fund
Faithspace fund
Chaplaincy fund
Circuit Model Trust fund
Ark Project fund
Chantry Road Repairs
fund
Manses and properties
fund
Revaluation Reserve
Restricted funds
Benevolent fund
Training fund
Bristol Methodist Centre
BMC property fund
Chaplaincy funding
TOTAL FUNDS		 At 1.9.18
£
179,068
7,259
-
162,019
102,405
-
5,962,333
3,644,479
10,057,563
445
2,096
384,603
1,081,839
-
1,468,983
11,526,546		 Prior
year

adjustment
£
-
-
-
-
-
-
949,222
-
949,222
-
-
-
-
-
-
949,222		 Net
movement

in funds
£
(6,664)
6,760
(39,266)
(51,942)
(27,964)
-
(221,585)
(939,449)
(1,280,110)
-
-
(40,086)
-
41,000
914
(1,279,196)		 Transfers

between
funds
£
5,592
(5,592)
26,000
(60,000)
-
60,000
621,030
(621,030)
26,000
-
-
-
-
(26,000)
(26,000)
-
At
31.8.19
£
177,996
8,427
(13,266)
50,077
74,441
60,000
7,311,000
2,084,000
9,752,675
445
2,096
344,517
1,081,839
15,000
1,443,897
11,196,572

continued...

Page 32

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2020

21. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Faithspace fund
Chaplaincy fund
Circuit Model Trust fund
Ark Project fund
Manses and properties fund
Revaluation Reserve
Restricted funds
Bristol Methodist Centre
Chaplaincy funding
TOTAL FUNDS		 Incoming
resources
£
956,884
20,321
-
15,177
14,538
-
-
1,006,920
143,820
41,000
184,820
1,191,740		 Resources
expended
£
(963,548)
(13,561)
(39,266)
(68,359)
(42,502)
-
-
(1,127,236)
(185,882)
-
(185,882)
(1,313,118)		 Gains and
losses
£
-
-
-
1,240
-
(221,585)
(939,449)
(1,159,794)
1,976
-
1,976
(1,157,818)		 Movement
in funds
£
(6,664)
6,760
(39,266)
(51,942)
(27,964)
(221,585)
(939,449)
(1,280,110)
(40,086)
41,000
914
(1,279,196)

General Fund

The purpose of this fund is for the use at the discretion of the trustees in the furtherance of general objectives of the Circuit and which have not been designated for other purposes.

Faithspace Fund (designated)

This represents one third of the cumulative net income and expenditure from the Faithspace activity carried forward as our share of the project which is operated jointly with St Mary Redcliffe (Church of England)

Chaplaincy Fund (designated)

Monies received to fund the chaplaincy provision, sources are Connexional and District grants and from industrial concerns that benefit from regular supply of the service

Circuit Model Trust Fund (designated)

The purpose of this fund is for the use at the discretion of the trustees in the furtherance of general objectives of the Circuit. Its main source of income is legacies and contributions from the sale of manses and church buildings in the Circuit.

Ark Project fund (designated)

Funds allocated to sustain the work of The Ark team including allocation of the proceeds of sale of Oldbury on Severn. The Ark project works alongside churches and in the community providing resources and inspiration for outreach.

Ark vehicles fund (designated)

Remaining depreciation reserve in respect of the vehicles bought and converted to use for the Ark project.

Chantry Road Repairs fund (designated)

continued...

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BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2020

21. MOVEMENT IN FUNDS - continued

This fund is designated for repairs of the property at Chantry Road.

Manses and properties fund (designated)

This fund reflects the value properties held by the Circuit other than properties held for the specific use of the Bristol Methodist Centre. It reflects the value of manses at cost and investment properties at valuation.

Revaluation reserve (designated)

Reserve representing the change in value of fixed asset properties owned by the Circuit.

Benevolent Fund (restricted)

The fund is required by standing orders and is restricted to provide support for the poor and needy within the Circuit

Training Fund (restricted)

Monies held to facilitate relevant training for those unable to self fund.

Bristol Methodist Centre (restricted)

The fund was transferred from the Bristol District in 2015 and is to support the work of the Bristol Methodist Centre in its work with the homeless and vulnerable.

BMC Property Fund (restricted)

The fund reflects the deemed cost of the BMC property.

Chaplaincy funding (restricted)

The fund represents grants received specifically for support of the chaplain.

Korea link clergy funding (restricted)

The fund represented grants received specifically for the support of the Korea link minister in 2018.

TRANSFERS BETWEEN FUNDS

During the year, a grant of £38,000 received specifically for chaplaincy funding has been released by the restricted Chaplaincy Funding fund to the Chaplaincy fund and recognised in the SOFA as a transfer.

A transfer of £60,000 has been made from the Chantry Road repair Fund to the Revaluation reserve together with a further £19,564 from the Model Trust fund to reflect the capitalisation of improvements to the Chantry Road manse.

A transfer of £619,000 has been made from the Manses and Properties fund to the Model Trust fund to reflect the market value of the two properties sold in the year.

continued...

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BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 AUGUST 2020

22. EMPLOYEE BENEFIT OBLIGATIONS

Methodist ministers are members of the Methodist Minister’s Pension Scheme (MMPS). This is a defined benefit scheme.

Lay employees are contractually employees of the Circuit and belong to a multi-employer defined contribution scheme operated by TPT Retirement (formerly The Pensions Trust).

The Connexion accounts for both pension schemes and shows the figures in the annual accounts of the Methodist Church of Great Britain.

The cost attributable to the Circuit for the year ended 31 August 2020 was £97,782 (2019 - £87,840).

23. CONNECTED ORGANISATIONS AND RELATED PARTIES

One of the trustees, Philip White, was paid £2,026 (2019 - £204) to carry out maintenance work on a manse. None of the Circuit trustees made donations direct to the Circuit during the year or the preceding year. All of the Circuit trustees are members of one or another church within the Circuit and may be trustees in their churches.

Connected organisations include the Methodist Connexion, the Bristol District, churches within the Circuit, other Methodist Districts in Great Britain, CFB and TMCP, except as reported in the notes to the accounts. All of these entities have their own trustees or directors and autonomous administration such that the Circuit has no significant influence over any of them, nor they over the Circuit. They are, therefore, not considered related parties.

Page 35

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

FOR THE YEAR ENDED 31 AUGUST 2020

APPENDIX
Trustees Appointed Resigned
Rev D R Alderman - Superintendent
Minister
Mr R C Ascott
Mr J L Baggott 30/09/2020
Mrs D Bailey
Miss M C Barrington
Mrs A L Beattie 30/09/2019
Mr A Biddlestone
Rev M Briggs
Mr A Britton
Mr B Brown
Ms C Brown
Mrs J Browning
Mr D Chandler 30/09/2020
Mr A Cockwell 30/09/2019
Rev H Cooke
Mrs J Cornell
Mr K M Cornell
Mrs R Cowell
Mr J W G Creech
Mr M Culshaw
Dr V Davies
Mrs G Dean
Mrs H Doggart 30/09/2019
Mrs R Doggett 30/09/2019
Mrs R Doyle
Mr A V Eaves
Mrs M Eaves
Rev S Edwards
D Faulkner
Mr C Farnham
Mr L A Garner 30/09/2020
Ms E Geldart
Mrs J George
Mrs G Giles 30/09/ 2019
Mrs A S Gillard 30/09/2020
Miss F M Haddrell
Mrs M A Harnell 30/09/2020
Mrs J Harris
Mrs P F Harris

Page 39

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

FOR THE YEAR ENDED 31 AUGUST 2020

APPENDIX
Trustees Appointed Resigned
Rev P T Hatton
Rev C Hayes
Mrs P Hayman 30/09/2020
Mr D Head
Mr G J Hicks 30/09/2020
Mrs H Hodder 30/09/2019
Mrs E P Hopper
Mr A E Hosking
Rev R E Howard
Mrs M Hurlstone
Mr J Ireland 30/09/2020
Rev PJ Jackson
Mrs S J James
Mrs M Johnston
Mr P Jones
Mrs J Keel
Ms M Knight
Mrs J Ladd 30/09/2020
K Ladd
Mrs S Lang 30/09/2020
Rev E Langley
Mr T J Lansdown 30/09/2020
Mr I Leslie
Mrs J Letty 30/09/2019
Mrs G Lewis
Rev P Luxton
Mrs J S Manners
Mrs J Mann
Rev L Maydew 30/09/2019
Ms J McGrath
Mrs J P McLaren
Mr K R Middleton
Mrs H Moon
R Morris 30/09/2020
Rev S Newell
Rev A Ngwana 30/09/2019
Mrs D G North
Mr P Offer 30/09/2019
Mrs A Osmond

Page 39

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

FOR THE YEAR ENDED 31 AUGUST 2020

APPENDIX
Trustees Appointed Resigned
Mrs E Parry
Mr D Phillips
Mrs J Pickering
Mr A Powell
Mrs M Powell
Mrs W J Priddle
Mr C A Redman
Mrs V A Redgers
Mrs C Reynolds
Mrs J Richards 30/09/2019
Mrs M E Ricketts
Mr J C Roberts 30/09/2020
Mrs S Rooke
Miss N Sharp 30/09/2019
Mr R Sharples
Mrs H Shears
Mr C Sleath
Mr C Sledge
Mrs R Sledge
Mrs C Slinn
Rev S Spencer 30/09/2019
Mrs M Spooner
Ms J Stacey
Mr M Stapleton
Mrs D Stears
Rev P Stonehewer
Mrs K M Strode 30/09/2020
Mr C Sutton
Mrs J Sutton
Mrs D Teml 30/09/2020
Mrs J D Vardy 30/09/2019
Mr M B Vardy
Mrs C W Varney
Mrs H Wallbridge
Mr R D Wallace
Mr T W Watkins
Mrs B Weeks 31/09/2019
Mr P White
Mr D Willis

Page 39

BRISTOL AND SOUTH GLOUCESTERSHIRE CIRCUIT OF THE METHODIST CHURCH

FOR THE YEAR ENDED 31 AUGUST 2020

APPENDIX

Trustees Appointed Resigned Mr R C Wood Mrs J M Yeoman

Page 39