South Warwickshire Methodist Circuit
Registered Charity Number 1154830
Trustees' Report and Audited Accounts
for the year ended 31 August 2021
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South Warwickshire Methodist Circuit Trustees' Report for the year ended 31 August 2021
Introduction
This report and accounts covers the year to 31 August 2021. On 1 September 2019 the charity became the legal entity for the new South Warwickshire Methodist Circuit and it changed its name to celebrate that change. The South Warwickshire Methodist Circuit was formed by combining the Mid-Warwickshire Methodist Circuit with the eastern part of the Stratford and Evesham Methodist Circuit. Assets coming into the charity from the Stratford and Evesham Methodist Circuit on 1 September 2019 were required to be shown as income in the Statement of Financial Activity.
The Circuit seeks to live out the calling of the Methodist Church to respond to the gospel of God’s love in Christ and to live out its discipleship and to:
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increase awareness of God’s presence and to celebrate God’s love
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help people to grow and learn as Christians through mutual support and care
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be a good neighbour to people in need and to challenge injustice
The mission of the South Warwickshire Methodist Circuit is to encourage and support people to be open and responsive to God, each other and the world.
Review of the year
The Statement of Financial Activities shows a net deficit on the General Fund, before other recognised gains and losses, of £83,139 for the year. This reflects planned utilisation of reserves to fund a policy of spending reserves on new initiatives to spread the word of God. Net expenditure of £28,512 on the Circuit Model Trust Fund mainly arises from the District Advance Fund contribution of £28,778. At the year end total reserves were £3,453,272. Of that £2,939,363 is held in fixed assets such as freehold and investment property.
Income trends
The principal funding sources during the year were:
-
1) General Fund Assessments received from the churches in the Circuit: £289,342. (2020: £285,063)
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2) Circuit Model Trust Fund: Investment income of 1,267. (2020: £4,269)
Expenditure trends
The principal items of expenditure were the stipends of ministers and provision of their manses, as well as the salaries of lay workers employed by the Circuit. Stipends increase each year in line with increases approved by the Methodist Conference. Lay workers are paid at or above the Living Wage (determined each November by the Living Wage Foundation). Lay worker salaries are reviewed annually to take account of any change in the scope and scale of responsibilities, individual performance and local comparators.
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South Warwickshire Methodist Circuit Trustees' Report for the year ended 31 August 2021 (continued)
Expenditure trends (continued)
An assessment of £55,716 (2020: £52,080) was paid to the Birmingham Methodist District, to support the work of the Methodist District and the wider Methodist Church. The annual contribution to the District Advance Fund, £28,778 (2020: £34,578), was reduced from the previous year as a result of lower Model Trust Fund reserves. The contribution is made under Standing Order 955(6) and is a tariff based on Circuit funds held by the Trustees for Methodist Church Purposes at the previous year end.
Fund balances
At 31 August 2021 net current assets were £513,909 (2020 £544,672). The reduction in net current assets reflects a combination of the Circuit's strategy of development within the Circuit and the District levy mentioned above offset by the recognition of a value relating to the surplus property at Knightcote.
Plans for 2021/22 and future years
Circuit financial plans for 2021/22 have had to reflect that the activity of the circuit and its Churches have been significantly disrupted by the covid 19 pandemic. In normal times the Circuit intends to continue to fund normal costs from the assessments paid by the Churches but will fund development work out of reserves. However, the pandemic will result in some normal costs being funded from reserves in the short term. The Circuit is taking steps to reduce the rate at which it is consuming its reserves.
Basis of preparation of accounts and legal framework
The Charity’s annual report and accounts for the year ended 31 August 2021 have been prepared in accordance with the Charities Act 2011 and the Charities: Statement of Recommended Practice 2019 as applicable to the Financial Reporting Standard (FRS) 102.
For the year to 31 August 2020, owing to the value of the assets introduced on circuit merger the income for the year exceeded the audit threshold. As a consequence, that year's financial statements were subject to audit rather than independent examination. For the year to 31 August 2021 the income fell below the audit threashold, however owing to the value of the gross assets, these financial statements are subject to audit.
Charity registration number: 1154830
Main communication address : 9 Northvale Close, Kenilworth, CV8 2EN
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South Warwickshire Methodist Circuit Trustees' Report for the year ended 31 August 2021 (continued)
Charity trustees
The members of the South Warwickshire Methodist Circuit meeting are the Charity Trustees,
membership being made up of circuit office holders, ministers and representatives appointed by the local churches (see Appendix to Trustees' Report for a full list of Trustees). The Circuit meeting delegates the day to day running of the circuit to a leadership team.
Circuit Leadership Team for the year to 31 August 2021
Active circuit ministers Rev Iain Ballard Rev Barbara Greenwood Rev Jeongsook Kim Rev Audrey Simpson Rev Jemima Strain (part time) Rev Sam McBratney (part time) Rev Richard Wilde (part time) Circuit staff Christine Flood - Assistant Minister Circuit stewards Trevor Pethick Miranda Tarrant Janet Mee David Witham (Treasurer)
David Witham acted as the principal officer overseeing the day to day financial management and accounting for the Circuit during the year.
Auditors
JW Hinks LLP - Chartered Accountants and Statutory Auditors
Bankers Central Finance Board of the Methodist Church Trustees for Methodist Church Purposes CAF Bank
Aims and organisation
The charity's objective is to act as a resource provider in South Warwickshire for the Methodist Church.
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 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;
d) Any purpose for the time being of any charity being a charity subsidiary or ancillary to The Methodist Church.
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South Warwickshire Methodist Circuit
Trustees' Report for the year ended 31 August 2021 (continued)
Aims and organisation (continued)
The Circuit encourages and supports the Methodist churches in South Warwickshire in: - the organisation and resourcing of regular public acts of worship which are open to members of the church and non members alike.
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the teaching of Christianity through sermons, courses and small groups.
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the resourcing of pastoral work including visiting the sick and bereaved.
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taking religious assemblies in local schools.
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-promotion of Christianity through the staging of events and services.
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-provision of clubs, activities and support groups with a Christian ethos.
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supporting other charities in the UK and overseas financially and with prayer.
The Circuit reviews its aims, objectives and activities and identifies opportunities for future action. It promotes mission and gives appropriate support to churches that demonstrate that they are outward looking, mission focused, not averse to change and taking risk and, where possible and appropriate, seeking to work in partnership with others.
Public Benefit
The trustees confirm that they have had regard to the Charity Commission’s guidance on public benefit.
Structure, Governance and Management
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 Leadership team.
Selection of Trustees and Training of Trustees
Trustees are appointed as set out in the Constitutional Practice and Discipline of the Methodist Church. Appointment is made by local churches or existing trustees or, in the case of ministers, on stationing in the Circuit. A range of guidance produced by Methodist Connexion to support the effective running of the Circuit is given to Circuit Meeting members, in particular the leaflet ‘The Role of a Trustee in The Methodist Church’ is given to all new Circuit Meeting members as induction to their role as trustees. Other training is provided to Trustees appropriate to their role and responsibility within the Circuit.
Related Parties
The Circuit is part of the Birmingham District and is also accountable to the Methodist Conference. The following Methodist Churches and Local Ecumenical Projects (LEP) are linked to the Circuit: Bidford on Avon, Cubbington, Dale Street, Fenny Compton, Henley in Arden, Kenilworth, Kineton, Mickleton, Radford Road (LEP), Stockton (LEP), Stratford upon Avon, Tysoe, Welford on Avon, Warwick, Wellesbourne and Whitnash.
The trustees and their close family members are also related parties.
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South Warwickshire Methodist Circuit Trustees' Report for the year ended 31 August 2021 (continued)
Risk Management
The major risks have been 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 compared with the approved annual budget on a half yearly basis to detect trends as part of the risk management process and avoid unforeseen calls on reserves.
Safeguarding
Every person has a value and dignity which comes directly from the creation of male and female in God’s own image and likeness. Christians see this potential as fulfilled by God’s re-creation of us in Christ. Among other things this implies a duty to value all people as bearing the image of God and therefore to protect them from harm.
Methodist Connexional practice outlines commitment to the following principles:
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the care and nurture of, and respectful pastoral ministry with, all children, young people and adults
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the safeguarding and protection of all children, young people and adults when they are vulnerable
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the establishing of safe, caring communities which provide a loving environment where there is informed vigilance as to the dangers of abuse.
• We will carefully select and train all those with any responsibility within the Church, in line with Safer Recruitment principles, including the use of criminal records disclosures and registration with the relevant vetting and barring schemes.
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We will respond without delay to every complaint made which suggests that an adult, child or young person may have been harmed, cooperating with the police and local authority in any investigation.
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We will seek to work with anyone who has suffered abuse, developing with them an appropriate ministry of informed pastoral care.
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We will seek to challenge any abuse of power, especially by anyone in a position of trust.
• We will seek to offer pastoral care and support, including supervision and referral to the proper authorities, to any member of our 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 commits itself to ensuring the implementation of Connexional Safeguarding Policy; government legislation, guidance and safe practice in the circuit and in the churches.
The Circuit commits itself to the provision of support, 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 of children and adults who may be vulnerable.
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South Warwickshire Methodist Circuit Trustees' Report for the year ended 31 August 2021 (continued)
Reserves Policy
The Reserves Policy for the Circuit is to hold a minimum sum equivalent to 4 months’ average expenditure. This should be sufficient to meet any unforeseen item of major expenditure on manses and continue planned activities for the short term in the event of any inability to raise the full circuit assessment from churches.
At 31 August 2021, the Circuit held reserves of £513,909, excluding reserves held as tangible fixed assets. This represents £364,000 in excess of the amount determined under the Circuit's reserves policy. The Circuit continues to develop a strategy to utilise surplus reserves for the furtherance of its objectives. The Circuit Meeting on 17 July 2017 agreed that the following costs should be excluded from the base for calculating assessments on churches and will be funded from reserves:
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Manse refurbishment costs in excess of rental income
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Costs of three part time presbyters for the length of their appointments
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Cost of additional mission focussed ministry (specific appointments being developed)
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Grants
The policy is continuing.
Poge8 South Warwickshire Methodist Circult Tru5tees' Report for the year ended 31 August 2021 (continued) statement of Tw¥te¢s' Res)nsIbIlitIeS The trustee8 are responsltrAe for preparing the Report of the Twslees and the financi818tatsments in accordance th applicable law and United lfjngdom Acuunting Standards {Uniled Klngdom Generally ACpIed Aouiunling Praclicel. The law 8ppli(%ble to charitses in England and Wales. Ihe Charities Act 2011, Charity {Accounls and Reports) Regulations 2008 8nd thè provlslons olthe trust deed requires Ihe trusiees to prepare finanrAal stslemenls for each financi81 yearwhi¢h give a true and fair eW of the state of affairs ofthe charity and ofthe incoming resourcès and application of resour, including the incomE and expendtiure. of the charityknthat pèrtod. In preparing those financFal slatemenls. the trustees aTe required to - seleGt suitable accountivu poliryes and than appty Ihem consistenuy: - ob5erye the methods and prfnaples in the Charity SORP.. - make judgements and estimates that are reason8ble and pfudent.. - prepare the financtal statements on the going concem basis unless it Is inappropT]ate to presume thatthe chaiity will continue in business. Th8 trvstee5 are responsible for keeping properattcounling rgcords whlch ¢fisclose reasonabl8 accuracy at any time the finanaal position of the charity and lo enable them lo ensure thal Ihe financAal statements comply wiu) the Charities Ad 2011, the Charity (A¢unIS and Reports) Regulations 2008 and the provisio¥Js of the trust deed. They arg also responsible for safeguarding the assets of the charity and hence for taking reasonable steps forthe PTevention and dèteclion of fraud and other irtegulawilie$. Approved by ctrd6Y of Ihe board of tru$lees on 22 June 2022 and Signed on its behalf by. Rev Dr lain Bollord Superintendent Mintster
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Appendix A
South Warwickshire Methodist Circuit Circuit Meeting Membership
| MINISTERS | Rev Dr Iain Ballard | |
|---|---|---|
| Rev Barbara Greenwood | To 31 August 2021 | |
| Rev Jemima Strain | ||
| Rev Jeongsook Kim | ||
| Rev Audrey Simpson | ||
| Rev Sally Jones | From 1 September 2021 | |
| OTHER MINISTERS RESIDING IN THE CIRCUIT WHO WISH | TO BE MEMBERS OF THE CIRCUIT MEETING | |
| Rev Andy Laird | To 9 June 2022 | |
| Rev E Brian Mason | ||
| Rev Richard Wilde | ||
| Rev Sam McBratney | ||
| Rev Ros Murphy | From 1 September 2021 | |
| CIRCUIT STEWARDS | Trevor Pethick | |
| Miranda Tarrant | To 31 December 2021 | |
| David Witham - Treasurer | ||
| Janet Mee | ||
| Sheila Brown | From 3 March 2022 | |
| LOCAL PREACHERS REPRESENTATIVES | ||
| Russell Blackwell | ||
| CHURCH REPRESENTATIVES | ||
| Bidford upon Avon | Alan Walker | |
| Barry Sutcliffe | To 29 June 2021 | |
| Cubbington | Derek Dwyer | |
| David Chirnside | ||
| Dale Street | Rachel Weir | To 3 March 2022 |
| June Gabbitas | From 3 March 2022 | |
| Joanna Rhodes | ||
| Fenny Compton | Linda Coleman | To 16 September 2021 |
| Jane Knight | To 16 September 2021 | |
| Henley in Arden | Margaret Blakemore | |
| Andrew Steele | ||
| Kineton | Michael Phipps | |
| Lesley Rimell | From 12 October 2021 | |
| David Gill | To 16 September 2021 | |
| Kenilworth | Jo Roberts | To 21 April 2021 |
| Andrew Bennett | From 21 April 2021 | |
| Mervyn Harvey | ||
| Mickleton | Mark Boulton | |
| Timothy Mead | ||
| Radford Road | Margaret Bull | |
| Christina Wise | ||
| Stockton | Heather Chamberlain | |
| Stratford upon Avon | Margaret Smith | To 17 December 2020 |
| Kathleen Fraser | From 17 December 2020 | |
| David Dumper | ||
| Tysoe | Christopher Gibbs | To 16 September 2021 |
| Russell Blackwell | ||
| Warwick | Trevor Blades | To 12 October 2021 |
| Anne Oliver | From 12 October 2021 | |
| Trevor Wills | ||
| Welford upon Avon | Brian Bradley | |
| Wellesbourne | Alison Lusty | To 14 October 2021 |
| Carol Cave | From 14 October 2021 | |
| Roger Thompson | ||
| Whitnash | Jan Tyrrell |
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South Warwickshire Methodist Circuit Statement of Financial Activities (SOFA) for the year ended 31 August 2021
| Notes to the accounts | General Fund (Unrestricted) |
Circuit Model Trust Fund (Unrestricted) |
Year ended 31.8.21 |
General Fund (Unrestricted) |
Circuit Model Trust Fund (Unrestricted) |
Year ended 31.8.20 |
|
|---|---|---|---|---|---|---|---|
| £ | £ | £ | £ | £ | £ | ||
| Income | |||||||
| Charitable activities | |||||||
| Assessments from churches | 5 | 289,342 | - | 289,342 | 285,063 | - | 285,063 |
| Lettings of manses | 6 | 13,800 | - | 13,800 | 4,638 | - | 4,638 |
| Other | 7 | 33,766 | - | 33,766 | 16,293 | - | 16,293 |
| Interest receivable | 8 | 59 | 1,267 | 1,326 | 563 | 4,269 | 4,832 |
| Cash balances received on circuit merger | 0 | 42,630 | 4,036 | 46,666 | |||
| Fixed assets received on circuit merger | 0 | 775,000 | 775,000 | ||||
| Total income | 336,967 | 1,267 | 338,234 | 1,124,187 | 8,305 | 1,132,492 | |
| Expenditure | |||||||
| Stipends,salaries,NI,Pension | 9 | 277,723 | - | 277,723 | 246,653 | - | 246,653 |
| District Assessment | 55,716 | - | 55,716 | 52,080 | - | 52,080 | |
| Telephone & travel | 8,852 | - | 8,852 | 13,755 | - | 13,755 | |
| Insurance,utilities,etc | 20,382 | - | 20,382 | 21,320 | - | 21,320 | |
| Maintenance on manses | 17,095 | - | 17,095 | 12,166 | - | 12,166 | |
| Office costs | 16,856 | 16,856 | 12,742 | 12,742 | |||
| Other Expenditure | 22,251 | 1,001 | 23,252 | 26,295 | 1,172 | 27,467 | |
| Grants and donations | 943 | - | 943 | 9,952 | - | 9,952 | |
| Depreciation | 288 | - | 288 | 908 | - | 908 | |
| Contributions to District Advance Fund | - | 28,778 | 28,778 | - | 34,578 | 34,578 | |
| Total expenditure | 420,106 | 29,779 | 449,885 | 395,871 | 35,750 | 431,621 | |
| Net(expenditure) / income | (83,139) | (28,512) | (111,651) | 728,316 | (27,445) | 700,871 | |
| Other recognisedgains and losses | |||||||
| Redundant churches held for sale | 13 | 80,600 | 80,600 | - | - | 0 | |
| Reclassification of funds | - | - | - | - | - | - | |
| Transfers between funds | - | - | - | - | - | - | |
| Draw down from model trust | 100,000 | (100,000) | 0 | 50,000 | (50,000) | 0 | |
| Net movement in funds | 97,461 | (128,512) | (31,051) | 778,316 | (77,445) | 700,871 | |
| Reconciliation of funds: | |||||||
| Total funds brought forward | 2,983,635 | 500,688 | 3,484,323 | 2,205,319 | 578,133 | 2,783,452 | |
| Total funds carried forward | 3,081,096 | 372,176 | 3,453,272 | 2,983,635 | 500,688 | 3,484,323 |
Potye 13 South Warwickshiie Methodist Circuit Balance Sheet as at 31 August 2021 Notes General Fund Iunrestrirtedl rturt Model Trust Fund Iunrestrbrtedl 31 Au8USt 2021 31 August 2020 Tangtble Fixed Assets Land, buildirbg5 & equipment Investment property li 2.539.363 2.539.363 2,539,651 12 Totolfved assets 2,939,363 2.939.363 2,939,6SI Current Assets Current investments 13 80,61XJ 21.965 Debtors and prepayments Trustees for Meihodist Church Purpose5 14 22,(rf)5 372.136 51.668 10.209 536.618 19,406 5CM).374 16.983 25,534 562.297 372,136 Central Finarhce Board Deposils Cash at bank 51.668 10.209 164 372,176 Credrior5 and Attruals (due In under l yr) 15 22.709 22.709 17,625 Nel curreni assets 141.733 372.176 513,919 544.672 3.081,1)96 372.176 3A53272 3,484.323 Funds of the Orcult General Fund Circuil Model Trust Fund 16 16 3,081.096 3.081.096 372.176 3.453.272 2.983,635 5(Ml,688 3,484.323 372.176 TotalFunds 3,081,096 372.176 5igTred.. Dated: 22 June 2022 Dovid Withom FCA Circutt TreasUr
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South Warwickshire Methodist Circuit
Notes to the Accounts for the year ended 31 August 2021
1. Basis of accounting
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 with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRC 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.
2. Public benefit entity
The charity constitutes a public benefit entity as defined by FRS 102.
3. Consolidation
The Circuit has denominational regulatory oversight in respect of the work of the Churches within the Circuit but has no legal or operational control of those Churches and their governing bodies except in extreme circumstances. For this reason, the financial statements of those Churches within the Circuit are not consolidated into these financial statements.
4. Accounting policies
i. Income Recognition
Income is brought into account when the Circuit becomes entitled to the resources and the Trustees believe it is more likely than not that they will receive the resources, and the monetary value can be measured with sufficient reliability. In accordance with Charities SORP (FRS 102), the time of volunteers is not recognised.
ii. Expenditure and Liabilities
Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the Trustees to pay out resources and the amount of the obligation can be measured with reasonable certainty.
iii. Grants
Where there are no conditions attaching to a grant made by the Circuit from its own funds, the grant is recognised in full at the time of agreement to make the grant. Where the Circuit gives a grant with conditions for its payment, being a specific level of service or output to be provided, the grant is only recognised in the SOFA once the recipient of the grant has provided the specified service or output. When the grant to be accured is recurrent over more than one year, the balance payable in future years is treated as a provision for future commitments in the Balance Sheet against the appropriate fund, the provision being released in future years as instalments are paid in accordance with the originally agreed terms.
iv. VAT
Since the Circuit is not VAT registered, all input VAT is charged with the expenses to which it refers.
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South Warwickshire Methodist Circuit
Notes to the Accounts for the year ended 31 August 2021
4. Accounting policies (continued)
v. Tangible fixed assets
These are capitalised if they can be used for more than one year, and individually cost at least £250. The freehold property held at 1 September 2015 is shown in the accounts at 2015 deemed value, being that property's insurance reinstatement value. The freehold property purchased after 1 September 2015 is shown at cost on acquisition. The freehold property acquired at the merger with part of the Stratford and Evesham Circuit is shown at the value previously used in the accounts of that circuit. The land component of the freehold property is deemed to be £50,000 per property.
No depreciation is provided on property because the Trustees consider the current residual fair value of the property in its present condition to be not less than the value at which it is stated in the balance sheet and, in the absence of any evidence of impairment, any depreciation for the buildings component of the property would be immaterial. Depreciation is provided on fixtures, fittings and equipment on a straight line basis over three years.
vi. Investment properties
From time to time the Circuit may hold residential property (formerly manses) which is surplus to its normal staffing requirements. Where this is the case and the property is deemed not to be held for the long term purposes of the Circuit, the property is designated as an investment property. The investment property acquired at the merger with part of the Stratford and Evesham Circuit is shown at the value previously used in the accounts of that circuit
vii. Properties held for sale
From time to time the Circuit may be required to assume responsibility for Church premises following closure and cessation of worship. This results in the Circuit Trustees becoming the managing trustees for the property so that the Trustees decide whether the property can be used in a different way to further the mission of the Circuit or whether it is redundant and should be sold. If a decision is made to sell the property, it is recognised as an asset at its anticipated net sale price as determined by a professional valuation and after taking account of the levy to be charged by the Connexion. Any expenditure on the property that is likely to enhance its sales value is capitalised at the time that the expenditure is incurred. Where proceeds are intended to be spent on activities, the property is included in assets at the lower of cost and net realisable value.
viii. Debtors, creditors, bank and cash
Debtors are stated at settlement amount or amount advanced by the charity. Subsequently they are measured at the cash or other consideration expected to be received. Creditors are initially recognised at settlement amount after any trade discounts, where normal credit terms apply, or the amount advanced to the Circuit. Subsequently creditors that are current liabilities are measured at cash or other consideration expected to be paid. The liquid funds of bank balances and deposit fund balances are shown at their realisable values.
ix. Methodist Connexional Funds
The Methodist Church Connexion raises assessments against Circuits and these are paid quarterly to their Districts. The Circuits raise assessments against Churches in the Circuit. The District remits to The Methodist Church Fund most of the sum received from Circuits. A small sum is retained by the District to meet its own costs.
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South Warwickshire Methodist Circuit
Notes to the Accounts for the year ended 31 August 2021
4. Accounting policies (continued)
x. Ministers' Manse Costs
The Circuit is required to provide accomodation for each minister in the Circuit and their families and 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, as well as the cost of ministers' removal to the Circuit. Where any manse costs are viewed by HMRC as taxable benefits to the minister, the resulting employer NI charge is included as part of the NI cost for the year.
5. Assessments from Churches
At the year end the Circuit comprises 15 churches which are assessed for a contribution to meet the overall net core, ongoing costs of the Circuit. 80% of the assessment is apportioned to the Churches on the basis of their adjusted income, including only 50% of letting income to allow for increased running costs and excluding one-off receipts, and 20% of the assessment is apportioned on the basis of their unrestricted reserves.
| Bidford on Avon Cubbington Dale Street Fenny Compton Henley in Arden Kenilworth Kineton Knightcote Mickleton Radford Road Stratford upon Avon Tysoe Warwick Welford on Avon Wellesbourne Whitnash |
Year ended 31.8.21 £ 2,937 20,428 69,276 6,125 6,024 58,193 6,524 - 7,660 8,412 41,136 3,980 34,060 4,919 11,432 8,236 289,342 |
Year ended 31.8.20 £ 6,288 13,516 63,000 5,844 6,688 54,780 10,888 1,371 7,976 11,700 43,144 6,024 33,448 4,436 8,632 7,328 |
|---|---|---|
| 285,063 |
6. Lettings
Lettings income relates to manses that are not required to house Circuit ministers in the short term and the manse has been let to tenants. Letting income is shown gross of fees and commission. The Trustees consider that is likely that these manses are likely to be returned to use as manses in the forseeable future so remain designated as tangible fixed assets.
7. Other Income from Charitable Activities
Unrestricted income of £33,766 includes reimbursement from the Coventry and Warwickshire University Free Church Standing Committee (FCSC) of £16,932 being expenditure by the circuit in providing a payroll service for FCSC in respect of a chaplain at the University of Warwick and £12,113 from the estate of Dorothy May Cox.
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South Warwickshire Methodist Circuit
Notes to the Accounts for the year ended 31 August 2021
| 8. Interest receivable Central Finance Board Trustees for Methodist Church Purposes Total |
Unrestricted Circuit Model Trust Fund Year ended 31.8.21 £ £ £ 59 - 59 - 1,267 1,267 59 1,267 1,326 |
Year ended 31.8.20 £ 563 4,269 |
|---|---|---|
| 4,832 |
| 9. Stipends, Salaries and Associated costs Staff Costs paid during the year were: Gross stipends and salaries Employer’s National Insurance costs Pension costs Apprenticeship Levy Total staff costs |
31.8.21 31.8.20 Ministers (Circuit Trustees) Mission staff Administ- ration Total Total £ £ £ £ £ 157,084 33,027 31,602 221,713 194,865 11,913 2,126 1,303 15,342 13,586 37,213 1,352 726 39,291 37,041 976 205 196 1,377 1,161 207,186 36,710 33,827 277,723 246,653 Year ended |
31.8.21 31.8.20 Ministers (Circuit Trustees) Mission staff Administ- ration Total Total £ £ £ £ £ 157,084 33,027 31,602 221,713 194,865 11,913 2,126 1,303 15,342 13,586 37,213 1,352 726 39,291 37,041 976 205 196 1,377 1,161 207,186 36,710 33,827 277,723 246,653 Year ended |
|---|---|---|
| 246,653 |
| Average number of full time equivalent number of staff employed during the year were : Ministers 5.92 Mission staff 1.50 Administration 1.47 8.89 |
5.75 1.00 1.67 |
|---|---|
| 8.42 |
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South Warwickshire Methodist Circuit Notes to the Accounts for the year ended 31 August 2021
9. Stipends, Salaries and Associated costs (continued)
No employees received employee benefits that totalled more than £60,000. There is no accrual for holiday pay as it is immaterial. All staff are paid at or above the living wage as calculated by the Living Wage Foundation.
Methodist Ministers are not employees of the Methodist Church although for simplicity, when accounting for National Insurance and pension contributions, the terms employer and employee are used as they would be in an employing body.
Contributions are made to the Methodist Ministers' Pension Scheme for all ministers. This is a defined benefit scheme which is accounted for in the financial statements of the Methodist Church in Great Britian. This scheme is in deficit but a plan for the removal of the deficit is being implemented.
Lay workers have the option of joining a defined contribution pension scheme which the Circuit has set up with TPT Retirement Solutions.
Each minister is entitled to a 3 month sabbatical every 7 years and the expenses incurred by the minister are met by the Connexion with the Circuit continuing to pay the stipend. Two ministers had sabbaticals during the year. The Circuit does not accrue for holiday pay cover as the remaining staff cover as needed without extra pay.
Payments to Trustees
The Superintendent Minister, other ministers of the Circuit and the Circuit Stewards constitute the Circuit Leadership Team and are considered as Key Management Personel. The Superintendent chairs meetings of the Circuit Leadership Team and the Circuit Meeting. The Circuit Leadership Team, together with church and other representatives, are members of the Circuit Meeting and are the Trustees of the Circuit. The stipends, employer's National Insurance and employer's pension contributions and other expenses of the ministers of the Circuit are paid by the Circuit, as determined by the Methodist Church, and are separately disclosed as part of staff costs above. Manses are provided by the Circuit and the Circuit maintains the property.
| Payments made to trustees who are part of the leadership team Travel expenses Phone expenses Number of trustees who were paid expenses 10. Fees for audit of the accounts Audit fees Payments made to trustees who are not part of the Circuit Leadership Team for additional services - preaching fees and related expenses |
31.8.21 31.8.20 £1,534 £7,832 £4,545 £2,695 £6,079 £10,527 nil £1,305 7 9 31.8.21 31.8.20 £3,474 £3,360 Year ended Year ended |
|---|---|
Page 17
South Warwickshire Methodist Circuit
Notes to the Accounts for the year ended 31 August 2021
11. Tangible Fixed Assets
| Cost or valuation Balance at 1 September 2020 Balance at 31 August 2021 Depreciation Balance at 1 September 2020 Charge of year Balance at 31 August 2021 Net book value At 31 August 2021 At 31 August 2020 |
Manses Land Manses Buildings Fixtures, Fittings & Equipment £ £ £ 300,000 2,239,363 5,147 300,000 2,239,363 5,147 - - 4,859 - - 288 - - 5,147 300,000 2,239,363 0 300,000 2,239,363 288 - - Straight line 2/3 years |
Manses Land Manses Buildings Fixtures, Fittings & Equipment £ £ £ 300,000 2,239,363 5,147 300,000 2,239,363 5,147 - - 4,859 - - 288 - - 5,147 300,000 2,239,363 0 300,000 2,239,363 288 - - Straight line 2/3 years |
Manses Land Manses Buildings Fixtures, Fittings & Equipment £ £ £ 300,000 2,239,363 5,147 300,000 2,239,363 5,147 - - 4,859 - - 288 - - 5,147 300,000 2,239,363 0 300,000 2,239,363 288 - - Straight line 2/3 years |
Total £ 2,544,510 |
|---|---|---|---|---|
| 2,544,510 | ||||
| 4,859 288 |
||||
| 5,147 | ||||
| 2,539,363 | ||||
| 2,539,651 | ||||
| Basis of depreciation | - |
- | Straight line 2/3 years |
Manses at 31 August 2021 comprise:
| Manses at 31 August 2021 comprise: | |
|---|---|
| 9 Northvale Close,Kenilworth | Occupied byCircuit Minister |
| 48 Warwick Place,Leamington Spa | Occupied byCircuit Minister |
| 101 West Street,Warwick | Occupied byCircuit Minister |
| 22 Gardiner Road, Kineton | Occupied by Circuit Minister |
| 61 Murcott Road East, Whitnash | Occupied byCircuit Minister |
| 1a Hillside Road,Stratford upon Avon | Occupied byCircuit Minister |
| The Manse, Chapel Lane, Mickleton | Currentlylet, included in investmentproperty |
12. Investment Property
Mickleton manse is currently let and is considered unlikely to be used for its original purpose again. Therefore, it is classified as an investment property.
£
Cost or valuation
| Cost or valuation | £ |
|---|---|
| Balance at 1 September 2020 Balance at 31 August 2021 |
400,000 |
| 400,000 |
13. Current Investments
During the year to 31 August 2021 the Circuit Meeting resolved that the building at Knightcote, inherited by the Circuit Meeting upon the closure of the society there, should be disposed of by way of sale. Consequently, a value for that building is now recognised as a current asset investment. The fair value is based on an offer received following the marketing of the building. Contracts have not yet been exchanged.
| Offer accepted subject to contract Less: Estimated expenses of sale Estimated Connexional Property Fund levy |
£ £ 112,000 11,000 20,400 |
£ £ 112,000 11,000 20,400 |
|---|---|---|
| 31,400 | ||
| 80,600 |
Page 18
South Warwickshire Methodist Circuit
Notes to the Accounts for the year ended 31 August 2021
| 14. Debtors Prepayments accrued income 15. Creditors due in less than one year Accruals and deferred income 16. Reserves At 1 September 2020 Net (expenditure)/ income for the year Recognition of redundant church held for sale Transfer between funds At 31 August 2021 |
31 August 2021 £ 22,005 £ 20,435 General Fund Circuit Model Trust Fund £ £ 2,983,635 500,688 (83,139) (28,512) 80,600 - 100,000 (100,000) 3,081,096 372,176 |
31 August 2021 £ 22,005 £ 20,435 |
31 August 2020 £ 19,406 |
|---|---|---|---|
| £ 17,625 |
|||
| Total £ 3,484,323 (111,651) 80,600 - |
|||
| 3,453,272 |
The purpose of the General Fund is for use at the discretion of the Trustees in the furtherance of the objectives of the Circuit. About 98% of this fund is held as freehold property and so is not available to meet expenditure in the short term.
The purpose of the Circuit Model Trust Fund (CMTF) is for use at the discretion of the Trustees in the furtherance of the objectives of the Circuit. Its main source of income is contributions from the sale of manses and church buildings in the Circuit, after contributions and levies to the Connexion determined by the Methodist Church. Although technically an Unrestricted Fund under the control of the Circuit Meeting, prior approval is still required from the District to utilise these funds.
Page 19
South Warwickshire Methodist Circuit Notes to the Accounts for the year ended 31 August 2021
17.Related party transactions
| Year ended 31 August 2021 Year ended 31 August 2020 |
Year ended 31 August 2021 Year ended 31 August 2020 |
Year ended 31 August 2021 Year ended 31 August 2020 |
Year ended 31 August 2021 Year ended 31 August 2020 |
Year ended 31 August 2021 Year ended 31 August 2020 |
Year ended 31 August 2021 Year ended 31 August 2020 |
Year ended 31 August 2021 Year ended 31 August 2020 |
|---|---|---|---|---|---|---|
| Name of related party | Relationship | Description of transaction |
Income from related party |
Paid to or goods provided to related party |
Income from related party |
Paid to or goods provided to related party |
| £ | £ | £ | £ | |||
| Methodist Churches within the South Warwickshire Circuit |
Churches within the Circuit |
Assessments (share of Circuit costs) |
289,342 | - | 285,063 | - |
| Various churches within the Circuit |
Churches within the Circuit |
Grant for youth and mission work |
- | 943 | - | 996 |
| Various smaller churches within the Circuit |
Churches within the Circuit |
Grants for Audio Visual equipment |
- | - | - | 3,089 |
| Various smaller churches within the Circuit |
Churches within the Circuit |
Grant for new hymn books |
- | - | - | 530 |
| Tysoe Methodist Church |
A Circuit Church |
Ark project | - | - | - | 420 |
| Stratford upon Avon Methodist Church |
A Circuit Church |
Grant towars awning | - | - | - | 1,000 |
| Dale Steet Methodist Church |
A Circuit Church |
Grant for K4 equipment |
- | - | 3,668 | |
| Birmingham Methodist District |
Methodist District in which Circuit located |
Assessment (share of costs of District and Methodist Connexion) |
- | 55,716 | - | 52,080 |
| Birmingham Methodist District |
Methodist District in which Circuit located |
District Advance Fund contribution |
- | 28,778 | - | 34,578 |
| Rev D Greenwood | Spouse of a trustee |
Preaching fees | - | - | - | 295 |
There were no amounts owed to related parties at the year end.
Page 20
South Warwickshire Methodist Circuit Notes to the Accounts for the year ended 31 August 2021
18. Operating Leases
The minimum future lease payments receivable under non-cancellable operating leases ending not later than one year from the balance sheet date is £10,350.
19. Contingent Liabilities and Capital Commitments
Under the agreement that divided the assets of the Stratford and Evesham Methodist Circuit a disposal of the Mickleton manse could result in a liability to share the proceeds with the South Worcestershire Methodist Circuit. The amount of any such liability would be 50% of the net proceeds in excess of the value of the Wyre Trust reduced by net rentals received by this circuit. Based on the value used for the manse in the balance sheet, such a liability would be approximately £102,000. This is in addition to the liability to the Connexional Priority Fund that arises on most property disposals. No provision has been made in the financial statements on the basis that there are no plans to sell the manse and therefore the liability is not expected to be incurred.
page22
Independent Auditor’s Report to the Trustees of South Warwickshire Methodist Circuit Opinion
We have audited the financial statements of South Warwickshire Methodist Circuit (the ‘charity’) for the year ended 31 August 2021 which comprise of the Statement of Financial Activities, Statement of Cash Flows, Balance Sheet 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, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the charity’s affairs as at 31 August 2021, and of its incoming
-
resources and application of resources, including its income and expenditure, for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Charities Act 2011.
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 Auditor’s 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
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sectio
Other information
The trustees are responsible for the other information. The other information comprises the information included in the trustees annual report, other than the financial statements and our auditor’s report 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.
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:
-
the information given in the financial statements is inconsistent in any material respect with the trustees’ report
-
the charity has not kept adequate accounting records; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they 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.
Audltor's r8sponslbllllls lor the audlt ol th• Ilnanclal statements We have been aFpointed as auditor under section 144 of the Charities Act 2011 aThJ report in accordan with regulations made undgr Section 154 01 that A¢¢. Our objeC'VeS are to obtaiTh reasonable assurance aboui whether the linancid slalem8nts as a whole are free from fflaterial misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Raasonable assurance is a hKJh level ol assuran¢e, bul 15 not a guarantee that an audit conducted in accordance wth ISAS IUKI will always detecr a material misstatement when il exists. Mis5taternents can arise from fraud or error and ar8 ¢onsidered rnaterial il, individually or in the agoregat6, they coukl reasonabty b6 8xp8cled to InflUer the ecoThJmic dèei$i¢n5 of users taken on the basis of these financial statements. Irregularib'es, including fraud, are instances of non-complianee with laws alld regulations. We design procedures in line with our rssponsibilities, outlined abovè, to d9tgct material misstatemanis in réspect ol irregularities, including fraud. The extent to which our pro¢8dures are CaPae ol detecting irregularities, including fraud is detailed below.. Wo entIfied areas ol laws and regulations that could reasonably be expected to have a material effect on tho financial Statements and diseussed the policies and pro¢gdur8s regarding compliance. Specific areas considered were as follows". Erouiring wth n7anagemenl and others to gain an understandiro of the organisation its&ll including operations, fi'nancial rewrting and known fraud or error. Evaluating and underslandino the internal control system. Pertomiing analytKal procedures as expected or unexpecled varian¢gs in account balance5 or classes ol tran: Tesbng do¢umentation supporting a¢¢ount balances or classes ol transacb'ons. BaUSe of the inherent limitations ol an audit, th6r$ is a risk that we will not detect all irregularities, includirrfJ those leadir4J to a material misstatement in the financial statements or non-eompliance regulation. This risk increases the rnore that corn lanc8 With a law or règulation is removed from the evènts and transactions refl8etd in the financial statements, as we will be lfyss likely to b6eomg awara of instances ol non-compliance. The risk is also greAter regarding irregularitie5 occurring due lo fraud rather than arror, as fraud involves intentional ¢oncealrT)enl, forgery, collusion. omission or misrenrg.sentation. A further description ol our re5ponsibililies lor the au¢Jil of the financial statements is located on tho Finaftcial Reptsrting Council's website at. httpsJlww.frc.org.ukJOur-WorklAuditlAudit-and-assurancetstandards-and-guidanco/Slandards-and- guidan¢&lor-auditorslAudilors-rèsponsibilities-lor-audiVD05¢ripty.on-of-auditors-responsibil'eS-tOr-audlt.aSpx. This description forms part of our auditor's raport. Wa cotnmunicate wilh thos8 charged wth govarnancs regarding, amoNJ other matters, the planned s¢(we and timing ol the audit an(J significant audit fi'ndings, including any $ionificant deficiencies in intornal control that we identify during our audit. U80 of our report This r8POrt is made solely to the charity's trusteès, as a body, in accordance bmth Part 4 of the Chariti8s (Accounts and Report$l Regulations 2008. Our audit work has undertaken so that we might state to the charity's trusteès those matters we are required to state to them in an auditor's report and lor no othèr purpose. To the fullest extent pormitted by law, we do not awept or assumè responsibility to anyonè other than the charity and the charitys trustees as a body. lor our audit work, for this rewrt, or lor the opinions we have formèd. 1 C C¥ trothkc4K 4 Iu LLJ) JW Hinks LLP Chartered Aecountants and Statutory Audito¥s 19 Highlield Road Edgbaslon Birmingham West MidlaThls B153BH 22 June 2022