The Methodist Church YEOVIL and BLACKMORE VALE METHODIST CIRCUIT (26-05) Charity Registration Number 1158290 TRUSTEES, ANNUAL REPORT for the year ended 31 AUGUST 2020 Yeovil and Blackmore Vale Methodist Circuit126-051 Year ended 31 August 2020 Yeovil & Blackmore Vale Clrcult of the Methodist Church (26105) Charity Registration Number: 1158290 24 Bamaby Mead. Glllingharn, Dorset. SP8 4AL ANNUAL REPORT FOR THE YEAR ENDED 31° AUGUST, 2020 1. SUPERINTENDENT'S ANNUAL REPORT. During the last year the Yeovil & Blackmore Vale Circuit has been able to work with a full quota of full-time ministerial staff. and along with our Supemurrerary colleagues and the large number of committed volunteers in every church, we have sought to cary out the work of leading worship, pastoral care. outreach and mission. In Seplember 2019 we welcomed Rev Kate Konrad to take pastoral responsibility for churches in the Yeovil end of the Circuit and are appreciative to Rev Margaret Oxenham (Supemumerary) for her committed work in this part of the Circuit prior to Kate's arrival. Our Pioneer Minister, Dea￿n Rebekah-Joy Spinks suc￿sSfUllY completed her sets)nd year of Probation in the Circuit and has continued to develop Youth Work and intergenerational mission in the southem and eastem sectK)n of the Circuit. The District Probationers. Committee re(x)mmended that Rebekah-Joy be Ordained and Received intr) Full Connexion at the Methodist Conference in the Summer of 2020. Due to the 'Covid19' crisis, the business of conferen￿ was not able to be completed in the usual way. meaning that Rebekah-Joy was Received into Full Connexion (virtually) and will now be Ordained at a service in Wesley's Chapel, London on 18" April. 2021. Rev Gordon Elford. for reasons of age and health. has had to step down from active ministry, but the Circuit continues to hold a deep sense of gratitude for the generous and tireless work undertaken by the four other (active) Supemumerary ministers and nineteen fully accredited lactive} Local Preachers- without their reguL8r arKI consistent ministry Sunday-by-sunday, the worshipping life of the Circuit could not be sustsined. During the year the Circuil has continued to employ three part-time lay staff 1x2 workers with children and families,. x1 administrator). Along with the Children & Families Worker who was appointed to work al Bell Street Church (Meth & URC) and Motcombe Methodist Church, it has been encouraging to see the imaginative and inspiring work being done amongst farnilies linked to our Circuit churches. These activities include. Holiday Playschemes, Parent & Toddler Groups, 'Messy Church.. Youth Clubs. craft & music. and other activities and events that have helped in the mission of Church congregations. In addition. it is impossible to quantify the voluntsry time and effort has been given by our team of Circuit Stewards and numerous members of individual churches across the Circuit. Our large team of Stewards, Pastoral Visitors. Junior Church helpers. caterers, secretaries, property offI￿rS. etc, do outstanding work to ensure the snb)oth Tunning of our churches and adhere to the best praCtI￿S required of our denomination. Yeovil and Blackmore Vale Methodist Circuit126-05) Year ended 31 August 2020 Worship has taken place in seventeen churches (with SeNi￿S also being led in the worshipping community at Ashmore where the Methodist Society meets in the Village Hall). During the year. the Manse at 24 Harbin Close. Yeovil has been let to tenants. Along with every other group. business, organisation and charity in the country, the work of the Yeovil & Blackmore Vale Circuit in the Se￿nd halfof the year has been overshadowed by the consequences of the 'Covid19' pandemic. The need for a 'lockdown' of all public buildings ￿nsIdered 'non*ssential', resulted in the closure of all our church buildings and cessation of all activities thal took pla￿ within them. There have been financial consequences as churches have had to cope with a shortfall of income through weekly cash offerings and loss of rental income from community groups who hire Halls and other rooms in our churches. As well as the financial impact, Ihe 'lockdown' measures have meant we have been unable to continue the nomial ministy and mission in so many ways amongsl church members and those in the wider communty who have no direct link with a specific congregation. Our ministers have been unable to lead worship, visit people in their homes. minister to the sick and dying in hospitals and take part in social activities and other community events linked to the lrfe of our congregations. This has been deeply dISt￿sSIng for many in our church communities, especially the elderly. isolated and those considered at 'high risk. of infection. All Staff members have sought to adjust to the challenges and, by using the (t)nferencing platfomi 'Zoom' there have been three 'online' services each Sunday. Additionally, worship material has been prodU￿d and distributed via email and posl to those who cannot use online technology. Visiting, has been done via phone calls and email and our Children & Families workers have worked creatively to produ￿ actlvlty packs and other resources to keep in touch with children and parents. As this report is written. we are beginning lo re4)pen our church buildings again for worship after the completion of extensive worft by Property Secretaries land others) vtho have undertaken the exacting requirements of the Risk Assessment protsss; ensured the safety of all buildings. and. implemented systems which will allow people to visit our Churches with a high degree of Confiden￿ (whilst accepting that whilst the Covid virus is present in the general population, there is no absolute guarantee of safety in any public pla￿). Some of our churches remain closed for the time being and will continue to do so for some time given the health ￿ncernS for some of the key officers who are responsible for the opening and Tunning of the buildings. The Circuit Leadership Team {CLTI has been in tCHJch wth all chLJrches assuring them of our continued support and (whilst it is not possible to guarantees any sort of 'bail out'} all Treasurers are aware of the offer of financial assistance from Circuit funds rf a congregation has immediats and pressing ￿Sh-fknW problems. In line with the purposes of this charity have worked to advance the Chrislian faith and fulfil our charitable status through: Regular acts of worship in all ChurL*es (and devebpment of online services using the 'Zoom' plafform during the 'C19' pandemic) induding funerals. weddings and baptisms. Small houselfellowshiplprayer groups land the estsblishment of new online 'Zwm' groups). We have multiple Circutt wide groups supporting those under 11, and 11-16yrs; additionally, there is one group providing social and spiritual support to those over 50- five active Women's Fellowship Griyjps" three senior citizens luncheon clubs. and, three regular Prayer Breakfasts. Yeovil and Blackmore Vale Methodist Circuit126-051 Year ended 31 August 2020 Community involvement is maintained through a variety of groups including: St Mark's community garden" working with Vine Youth Ministry in local schools: 'Rendezvous' youth project in Shertx)me; The Lord's Larder (Yeovil) and Food-Banks in Sherbome; Gillingham and Shaftesbury providing food for those in need. Bereavement Drop-ln group., Senior citizens lunch clubs- regular coffee momings; several parenucarer & toddler groups as well as children and young people's groups. During the year Gillingharn established a 'Clothing Exchange, project to supply good quality clothing for parents with babiesAoddlers and young children. The Circuit Meeting reviewed its Safeguarding Policy for children, young people and vulnerable adults. The Circuit, and all Circuit Churches. have continued to respond to the requirements of the GDPR legislation and all data files are being reviewed. privacy notices are being approved and displayed. The 'Circuit Policy. document has been the basis of our work and the CLT continues to review priorities and plan for changes that are likely to be required beyond 2023 when our current five-yearfinancial plan comes to an end. In Ihis Financial Year. the Circuit gave a grant of £3.000 to support the work of the Vine Youth Ministry charity vthich provides Christian outreach lo sCh￿IChildren and young people in our area. A grant of £4.100 was also made to our Bell Street & Motcombe churches as SUPFQrt lor the Family WcKker (Ms Natalie Kay). Education and training all ages, including four Local Preachers in trydining 1x3 'On Trial, & x1 '0n Note.).. one Circuit First Aid course.. and. two Circuit 'Safer spa￿s, Safeguarding training courses (x1 Foundation and x1 Advan￿￿ Modules) delivered during the year. Pastoral care of the housebound. the dying, those in hospital and others in need (and via phone call and email during the pandemic lockdown). Encouragement for members to be involved in all aspects of the life. work and witness in the Circuit Churches and in mission and service to the community (including local hospitals.. Guy's Marsh Prison,. Street Pastors and Local Fo￿- banks). The Circuit Meeting is made up of all Trustees who are ex-officio because of the Offi￿ held or elected by individual churches on an annual basis to represent them on this body. 11 has mel only twi￿ during the year- Iwo meetings hawng been cancelled due to the Covid lockdown restriclions. Essential business has been conducted by the CLT using devolved powers entrusted lo it by the Circuit Meeting. Leadership of the Circuit is given by the Staff Team together with the Treasurer and five Circuit Stewards. and the Circuit Property Secretary - these form the Circuit Leadership Team ('CLT'). This Team meets regulady to oversee the work of the Circuit and to formulate FM)licy. In concluding this report, I would like to offer my thanks to all staff and volunteers who have given much time and energy in ensuring that the life of the Circuit and its Churches continue to make progress in many areas of work, but wish to add speufic thanks to Dr Kevin Fisher, our retiring Treasurer. Kevin's work has been exemplary - his financial gtfts combined with his enthusiasm for the work and ministry of the Circuit has been invaluable. We wish him well as he nM)ves on and gratefully welcome Mr Lewis Buckwell who tske on the role of Circuit Treasurer. Yeovil and Blackmore Vale Methodist Circuit126-051 Year ended 31 August 2020 2. Objectives and activities In setting our objectives and planning our activities. the Circuit Meeting Trustees (under the Chair of the Superintendent Minislerl .who meet quarterly, have given careful consideration to the Charity Commissioners, general guidance on public benefit and. in particular. to its supplementary public benefit guidan￿ on advancing our objectives and conforms to the Charities Act 2011. Our mission is to be a powerful spiritual influence in the geogrdphi¢ area ￿Vered by the Circuit and a visible expression of God's indusive Love. Our Mission Slatement is=_ 'To know God's Love To Show God's Love To share God's Love. We aim to achieve this by encouraging. through the members and adherents of churthes in our CirGuit, the %*vorship, social. and oulread) activtties Ihat currenuy exist. and by seeking new ways to extend to others the fellowship of the Church family. We aim lo build a Circuit formed for Mission and full of generous people vlho are prepared to work, and develop. to build the Kingdom in this place. We share a common passion to use our gifts. graces and resources to the best of our abiliti'es to be mission-shaped followers of Jesus Christ. 3. Circuit Policy Support all 18 Societies of our Circurt in a positive and proactive way by providing leadership and pastoral care and ensuring the 0jntlnuan￿ of their regular pattem of Worship and fellowship. Declare that our central prtority is Making Disciples of Jesus and that we will facilitate initiatives of evangelism. Hold and work lo a realistic appraisal of the future potential of our Societies and. in particular, en￿Urage our three Yeovil Societies to explore the future shape of Methodism in the town. Commit ourselves to continuing the estsblishment figure of 4 Ministers (Presbyters &lor Deacons) by using the financial resources released by the sale of redundant buildings until at least 2020. (This policy will be reviewed as soon as Circuit Meetings can resume post Covid). To develop ministry amongst child￿n. young people and families in the southem and eastem end of the circuit through an additional full-time member of staff - a Dea￿n to undertake Pioneer ministry based in Stumiinster Newton. Make the best use of the experien￿ and abilities of the supemumerary ministers residing in our Circuit, who are very willing to offer their services. Based on existing strengths, build up a team of lay empfoyees covering a variety of roles including Administration. Children. Youth and Family Work. Yeovil and Blackmore Vale Methodist Circuit126-051 Year ended 31 August 2020 Respond lo requests for grants from CircuFt funds, giving priority to those projects that are orientated to mission rather than just maintenants ministry. Explore possibilities of using extemal expertise to enable those of our local Societies facing difficulties in recruiting specific post holders leg. T￿aSurerS) to comply with the myriad regulations and requirements. Ensure that we are compliant with Safeguarding pro￿SSeS and other regulatory demands (including Connexionall by offering training and follow up. Work to create a renewed sense of belonging to the wider family of Methodism - Circuit, District, Connexion and the World Church. Give encouragement to the opportunities of ecumenical work- particuLarfy in our shared ChurGhes at Shaftesbury and Sherbome. Challenge our people to discL)ver the Call of God in their lives and what this might mean in the development of a diversity of ministries. Through prayer and study. discover the meaning of Christian Discipleship in the Twenty-first Century and how effectively to engage in appropriate opwrtunities of mission and setvice. 4. Financial review During the year the Circuit re￿iVed totsl ino)me of £291 k {FY18119: £283k) and dispersed £343k (FY18119: £373k). Net Current assets of £512k (excluding propety & land) V￿re carried foplvard across the Year-End {FY18119: £564k). There were no significant events in aC￿Unting terns during the year. although, of course, the restrictions on church worship and activity due to Covid-19 severely hampered our wort( & led to a significant reduction in Ministerial expenses, manse maintenance costs and Grant applications. There have been no °Related Parw transactions in the Charity's Accounts during this Financial Year. The Trustees of the Circuit have every reason to believe thal the Circuit is a going concem. principally because our churches continue to meet their assessments and the Circuit has adequate Reserves to cover any shortfall in antiapated income. There are no subsidiary undertakings. Tnjstees do not currently foresee any factors that will significantly affect the financial perfomiance or position in the medium-temi plan lup to FY22123) untess the ongoing effects of Covid-19 cause some of our bigger fellowships to fail. In that case Assessment income will be impacted and this ¥￿Uld require the Circuit to raise other Funds - either through sale of the surplus manse or redundant thurth premises (or cut expenditure by a reduction in staffing levels). Following an extensive review of our financial Reserves in 2017 the Circuit re-committed itself to our 5 Year Plan for the ongoing deployment of four ministers (presbyters andlor deacons) until at least 2025 at which time this policy will be reviewed. In addition we have committed to a 5 year project, starting in September 2018, to employ a further Deacon in an outreach role focussed initially on the southem region of the Circuit based at Sturminster Newton and working with the Hazelbury Bryan. Ibberton and Kings Stag Fellowships. This will bring our Reserves to under 6 months of expenditure by August 2023. A decision regarding selling one of our propety assets (investment properties) to generate cash to fijlfil Yeovil and Blackmore Vale Methodist Circuit126-051 Year ended 31 August 2020 our ¢X)mmitments to Ministry in 2024 & 2025 will then need to be made unless other income sources have been identified. The Circuit continues to hold six freehold properties. Five of these are manses used to house the seNing Ministers of the Circuit in Yeovil, Sherbome, Gillingham, Shaftesbury & Sluminster Ne￿On. One, in Yeovil. was classed as an Investment propety in this Financial Year. The Circuit has the folbwng principal Sou￿$ of income- Assessments on churches within the Circuit Lettings revenues from the Investment property Interest on investments Donations from Trustees and individuals. Grants for our Mission from other bodies. particularly the Southampton District of the Methodist Connexion. These sums are used to administer the Circuit: pay Ministerial stipends and Lay employee Salaries and associated expenses: pay expenses of Local Preachers and Supemumerary staff who lead worship in our churches each week,. and to provide grants to churches and organisations in the Circuit so thal Ihey may embark on or tx)ntinue with projects that fulfil the mission of the Circuit by bringing mre people to Christ or by providing facilities that might enable this to happen. 4.1 Investment Policy and Perforniance To comply with Methodist Standing Orders, monies for long term investment are lodged with the Trustees for Methodist Church Putposes ITMCP). TMCP acts as custodian trustee for all real estate held by Circuils and for all large (over £20kl bequests and for the proceeds of sale of any propety fomiedy owned by ihe Circuit. These sums are invested in unitised investments or held on deposit. The investment retums are close to tracking the movements in the FTSE100 index. The deposit income mirror5 the deposit rates available elsewhere.The Circuit's Trustees. investment policy is aligned with that of the Methodist Central Finan￿ Board ICFB) and TMCP because these organisations take into consideration the social. environmental and ethical considerations. both negatively and positively. that make investments suttable for the Methodist Church. Short tem deposits a￿ lodged directly with the Central Finan￿ 8oard (CFB) and attract rates of interest comparable with the commercial markets available. There are no bench marks for the expected retums or appreciation on investments at TMCP and CFB. It is the Circuit's policy to manage the cash and investment reSoUr￿S of the Circuit so that a rate of retum on investment- both by way of dividend and capitsl appreciation - is obtained at least as good as rnarket rate considering the Circuit's low appetite for risk. The total retum achieved on the invested funds of the Circuit was under 1 /0 for the year. 4.2 Reserves level and policy The Circuit has a Reserves Policy covering all its unrestricted funds which is reviewed and approved annually by Trustees. usually at the De￿mber Circuit Meeting, and then submitted onwards to the Southampton Districl for aC￿ptance. The Circuit has begun the practice of holding meetings annually in January to develop a rolling 5 Year Plan for its Mission. including finan￿S. Representatives from all Churches ome togelher lo discuss Circuit budgets and revenue requirements for future years. Yeovil and Blackmore Vale Methodist Circuit126-051 Year ended 31 August 2020 The Circuit has only been in existence for 6 years and the indrvidual payments received from Churches is largely on a historical basis. Currently the total does nol fully cover net Expendilure. The budgeted deficit in FY2019120 was £106k to be made up from Circuit Reserves. In the 5 Year Plan up to FY2022123 this deficit is budgeted to stay around £1 Ook pa as we use up our surplus reserves on ministerial staffing levels14 Ministers plus another used for outreach). We have begun lo investigate whether there is a dtfferent, more formulaic. mechanism for splitting the total Assessment required between the 18 fellowships but, as yet. this hasn'l been properly developed. The Circuit aims to hold Reserves as follows=. a) £200,000 as typically representing 6 months budgeted Expenditure. b) £332.000 lo (t)ver budgeted shorttall of income over expenditure in the next 4 years as we have expanded our Ministerial staffing levels for extrd Outreach against our aims and mission. Although granls are usually made wthin the same Financial PeriLxI as they are approved by Trustees out of the Circuit's funds. it is recognised that some grants will be paid by annual instalments and that there will be applications repeated in fvture years. The Trustees seek to ensure that there is sufficient in the Circuit's Unrestricted funds to meet these anlicipated requests and the Trustees now rethgnise future grants as liabilities on the Balan￿ Sheet. The Cash Reserves held on 31st August 2020 were as follows: Unrestricted Funds Lloyds C/A Methodist CFB 148,652 59,627 Trim Legacy (TMCP) DD Gifford Cluett (TMCP) Circuit Model Trust Fund (TMCP) TOTAL UNREsfRicfED 159.105 53,086 106,995 527,465 Restricted Funds - Women's Work Fund 4,203 TOTAL CASH FUNDS 531,668 All funds are separately invested etther with CFB or TMCP. No money is directly invested in property. securities or other foms of investment. 4.3 Collaborative arrangements with connected charities Advance Fund. The Circuit holds no fvnds as custodian trustee. It does, however. from time to time, receive from churches contributions to ￿rtain Methodist (Related Party) and extemal Charitable Yeovil and Blackmore Vale Methodist Circuit126-051 Year ended 31 August 2020 bcKJies. These sums are collected by the Circuit as Agent for these bodies and are passed on directly to them within the same financial Year (or accrued as Creditors). Funds re￿iVed by the Circuit as Agent are not recognised as an asset in the financial statements because the funds are not within it's ￿ntrOl. No fee is eamed in respect of this Agency a￿angement and the Circuit incurs no (￿St through this arrangement. 5. Trustees, responsibilities The Charity was Cfeated in September 2014 by the merger of 2 Methodist Circuits. these were the Sherbome and Yeovil Circuit and the Ni)rth Dorset Circuit. For each financial year ending on 31 August the Trustees are required to prepare financial statements that give a true and fair view of the Circuit's financial activities during the year and of ils financial position at the end of Ihe year. In preparing these financial statements, the Trustees must: select suitable accounting poliaes and apply them consistently using the accruals method make judgements and estimates that are reasonable and prudent follow applicable accounting standards prepare accounts to comply with the Charities SORP The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Circuit and enables them to ensure that the financial statements comply with the law. They are also responsible for safeguarding the assets of the Circuit and hence laking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Circuit's V￿b$ite and on the Charity Commission's website. 6. Structure, governance and management The Circuit is an unincorporated association and is govemed by the Methodist Church Act 1976, the Deed of Union (1932) and the Model Ttust Deeds of the Methodist Church and was registered with the Charity Commissioners on 19 August 2014. Structure Circuits are the coordinating charities for local groups of churches,- Circuits pay the stipends of the ministers and employ lay staff to serve the churches in the Circuit- most decisions are made at or ratified by the quartedy Circuit Meeting. The Circuit is a member of the Southampton District of the Methodisl Church. A District is the coordinating charity for a group of contiguous Circuits and makes its decisions at the half yearly syncmjs. The Southampton District reports into the Methodist Conference. The Methodist conferen￿ meets once each year as the supreme denominational body for all Methodist Churches . Overall regulatory authority rests wrth the Meth¢xlist Conference. The Connexional Office implements decisions made by Conference and is also responsible for the stationing of presbyters and deacons (collectively known as ministers) in individual Circuits within each District. Connexional decisions are passed to the Chair of the District and the appropriale officers of the District for implementation. Yeovil and Blackmore Vale Methodist Circuit126-OSI Year ended 31 August 2020 The District passes control down lo Circuit level for local implementation by the Superintendent Minister, ministerial staff and Circuit Stewards, and authority is delegated to the Circuit Meeting for ￿rtain matters. The Circuit Meeting passes regulatory mntrol down to Church Councils for local implementation by the presbyter. Ihe Church Stewards, and other offI￿rS. and this regulatory authority is then exercised by Church Councils as Managing Trustees of their charity. 6.2 Purpose of the Circuit The Circuit is an expression. over a wider geographical area than any individual Church, of the Connexional character of the Melhodist Churth. The purposes of the Methodist Church are and shall be deemed to have been Sin￿ the dale of the union the advancement of: the Christian faith in accordan￿ with the doctrinal standards and the discipline of the Methodist Church, and any chantable purposes for the time being of any Connexional. District. Circuit, local or other organisation of the Methodist Church, and any charitable purpose for the time being of any society or institution subsidiary or ancillary lo the Methodist Church, and any purpose for the time being of any charity being a charity subsidiary orancillary of the Methodist Church. The primary purpose of this Cir￿ll is to advance the mission of the Church within the geographical area defined by the churches within Yeovil and Blackmore Vale by providing opportunities for Churches to V￿rk together and support each other by offering to churches resources of finan￿. personnel and expertise. The Circuit serves the local churches it's District and the Methodist conferen￿ in the support, deployment and oversight of the various ministries of the Church, and in progrdmmes of training. 6.3 Governance The Circuit operates within a statutory framework of regulation and seeks to ensure that tt follows Methodist Standing Orders. It relies on the Southampton District and Methodist Connexional OffI￿S to provide guidance on changes that could affect the Circuit. The Trustees of the Circuit have chosen to divest powers of decision required urgently between Circuit Meetings to the Circuit Stewards. They. in tum, fom part of the Circuit Leadership Team (CLT). This consists of the Ministers of the Circuit together with the 6 Circuit Stewards {including the Circuit Treasurer) and the Circurt Property Secretary. The Team meets formally at least every kn months and communicates routinely through electronic media. The Team is used by the Circuit as a means of fomiulating, discussing and refining Policy prior to proposal and debate at Circuit Meeting. 10 Yeovil and Blackmore Vale Methodist Circuit126-051 Year ended 31 August 2020 7. Reference and Administrative Details 7.1 Name of the charity Yeovil and Blackmore Vale Methodist Circuit 7.2 Charity registration number 1158290 Registered in England and Wales 7.3 Prfncipal Office Circuit Office clo Vicarage Street Methodist Church Middle street Yeovil BA20 1JZ 01935 432173 (Answerphone available) www.yandbvcircuit@gmail.com 7.4 Superintendent Minister Rev Paul Arnold 7.5 Circuit Manager Mrs Helen Coombes 7.6 Circuit Treasurer Dr Kevin Fisher 7.7 Names of trustees All voting Members of the Circuit Meeting are Trustees. The list, as at December 2019, is given in Appendix A. attached. Yeovil and 81ackmore Vale Methodist Circuit12&05) Year ended 31 Au8USt 2020 7.8 Bankers LLoyds plc Business Banki BX1 1LT Central Finan￿ Board of the Methcxdist Church 9 Bonhill Street London EC2A 4PE 7.9 Investment managers and custodian trustees Truslees for Methodist Church Purposes Central Buildings Oldham Street Manchester M1 1JQ 7.10 Independent Examiner appointed 9th Oecerrthr 2015 Mrs Karen Jones Lanham & Francis Chartered AcGounlants Church House Church Street Yeovil BA20 1HB Approvals The Trustees. Annual Report and the Financial Slalernents (SOFA. Bal8no Sheet and supporting Notes) will be submitted for approval by Trustees al the Circutt Meeting lo be held on 23rd February 2021. Paul Amold Isignedl Kevin Fisher {signed) Rev Paul Amold Chair of Ci DT Kevin Ftsh& Circuil Treasuref Date: ting 2oZJ 23 fab 10%1 12 Yeovil and Blackmore Vale Methodist Circuit126-051 Year ended 31 August 2020 APPENDIX A Trustees CONSTITUTION OF CIRCUIT MEETING SEPTEMBER 2019 Churth Steward and theTrÈasurer from eath churth plus a number of repre5entatlves based on church membership- I forchurthes with membership 30-59. 2 for 6(k119 and 3 for 120+ W￿￿ld betome members ofthe Circuit Meeting. Revd Paul Amold Revd Denise Binks Revd Ouncan Goldle Revd Kate Konrad Deacon Rebekah-joy Spinks Superintendent Msnlster Minister Mlnistèr Mbnister Deacon Mrs Helen Coombe5 MrsAnne Cook Mrs Lynn Heaton Cirtuit Managerlclrcutt Meetlng Secretary Circuit Youth Worker" Chlldren and Famllles Worker & Clrcult Salè8uardin8 Officer. Revd Richard Clark¢ Revd Gordon Elford Revd Ruth Farrant Revd Chrlstina Le Moignan Revd Joyce Norman Revd Mar8aret Oxenham Supernumerary MSnlst*r #•• Supernumerary Mlnlrter Supèrnumerary M5nlster SupernumeTrry Minister Supernumerary Minister #•• Supernumèrdry Minister *• Mrs Margaret Whitford Mrs Norma Bartlett Mr Lewis Buckwell Dr Kevin Fisher Miss Sarah James Mr Stephen Watson Senior Circult Steward Circuit Steward Circuit Steward Circuit Steward & Treasurer Circuit Steward Circuit Ste¥Ard OTHERAPPOINTMENTS Mr Philip Butler Mrs Kate Rawlins Mr Colin Farrant Mrs Chrtstine Lydford Mr Adam Miller rcuit Propwty Steward Local Preathets Secretary and LWPT Lotal Preachers. Tutor MWi8 President" Circuit Archivist BELL STREET. SHA￿EsBURy with ASHMORE1881 Mr Martin Forsyth Contact Steward *• Mrs Ruth Jones Treasurer Mrs Lls Gosney Representative I vacant Representative 2 Mrs Edie Langley Representative Ashmore 13 Yeovil and Blackmore Vale Methodist Circuit126-051 Year ended 31 August 2020 CHEAP STREET {101) Mrs Christine Rogers Mr John Stinchcom Mr Geoff Gardner vaont Trèasurer Representatlve I Representative 2 GILLINGHAM155) Mrs Eliiabeth Rickards Mrs Hllarywebb Mr Mikè Rawlin85 Mr Robert Rickards Contart Steward Treasurer Representattve I Representstlve 2 HAZELBURY 8RYAN1131 Mr5 Carole Miller MrTerrence Millèr StÈ¥Ard Treasurer IBBERTON171 Mrs Mary Leamon Mr Adam Miller Steward Treasurer XINGS ￿AG(sI Mrs Esther May Mrs Norma Le Poldevin Steward Treasurer LONGBURTON161 Mrs Jan En8llsh Dr Kevln Hsher Ste*drd Treasure MARNHULL1191 Mrs Gillian Walsham Mr Hayden Williams Mrs Sally Williams Ste%*ord Treasurer Reserve Rèpresentatl¥e MOTCOMBE1181 Mr David Wooldridge Mrs Sarah Upshall Mrs Win Jackson rre35urer Steward R¢serye Representative PREsfoN ROAD. YEOVIL {68) Mr Brian Cowling Mr Peter Cleall Mr Bob Kllllck Dr Colin Farrant Churth Secretary Treasurer Representativt I Represent*ive 2• sr MARK'S. YEOVIL1511 MrTre¥or Klrk Mrs Margaret Evan5 Mr Richard En8larKI Mr Richard Sinden Steward Treasurer Representatlve Reserve ReP￿SentatIve 14 Yeovil and Blackmore Vale Methodist Circuit12f*051 Year ended 31 Au8USt 2020 sruRMINSTER NEI￿ON with BROAD OAK1141 Mrs Christine Lwford Steward Mre Beth FOK Treasurer Mr Alan Harrison Representative Mr Adam Miller Reprtsentat5¥e Broad Oak* Mr5 Adrienne Richardson Reser¥e Repre5Wrtati¥e TISBURY1151 Mr. Ken Elcock Mrs Joy Aylen Steward Treasurer VICARAGE ￿REETI60} Mrs Thelma Stevens Mr Cliff Howell vacant vacant Steward Treasurer Repr￿ntatIVe I Representsti¥e 2 WINCANTON {161 Mrs L￿da Walters Dr Bob Jone5 Mr Tony Cole Joint StevArd Joint Ste￿drd Treasurer YETMINsfER161 Mrs Barbara Drfver Dr Kevin Hsher Churth Setrttary Treasure Not a voting member of the Circuit Meeting * Already a member in another capacity # Have decided not to participate. but are entitlÈd to become Mernber5 again in future if they so choose. Blue highlights indicate that the church has Representativels) or a Reserve Representative but have under 30 members. This is usually because the Steward andlor Treasurer do not attend the meeting. 15 Circuit Accruals Accounts 2019-20 THE METHODIST CHURCH TEMPLATE REPORT AND ACCOUNTS (ACCRUALS BASIS) for the year ended 31 August 2020 YEOVIL & BLACKMORE VALE Circuit P-*l¥tered Charlty- Regi5trallon number 1158290 Southampton District Circuit No 26-5 Mlniste Rev Pal￿ Arr￿￿ (Circurt SuperinteThJentl Rev Denise Binks Rev Goklie IURC Pa*oratsJ _ Rev Kate Konrad Deactsn RebekahJox Sjynks Circuit Stgwavd8 Mrs Nonna BaFUett Mr Lewis Buckwell Dr Kevin Fisher Miss S8Trh James MT Stephen Wdts Mrs Mar - Ja_ret whrtftjrd Lsenv StewardL _ _ _ - - - _ Circuit Treasurer Dr KevJ"n FishLY Name of Clrcuit YEOVIL & BLACKMORE VALE METhODIST CIRCUIT NIAMBER: 2&5 STATEMENT of FINANCIAL ACTivmES for YEAR ENDING 31AUGUST2020 GENERAL FUNDS bank CIA IAAthodtSl CFB & TMCPFvw15 Nc*es Prir*Y TOTAL Comwrwn 20Y&19 Trust Fund (Unreswickni) Fun Income 4232 3,921 34,478 4,a 8.176 235.704 2.467 11. 240.224 1.418 S Recapts 7 oty th*tatAeir(xyr 8 Tolal charitablg In¢om• 18 283,239 Expgnditurg 9 Sbpends. ￿¥￿e$. NIC & 10 Mini5WStrJv¥. te￿￿￿.. 11 Manse CcÉts Tax,¥l* & ?2 Manse mainter￿￿tr£￿￿ 13AY￿￿15￿lltr￿ ex[￿e$ (2xdU￿Thj loat￿) 14 F3rThly Wbther Costs (exd￿￿rllj 10th1 16 Oepreoatkjn 77 ProwsK)ns 18 Fts5& eh¥ge8 19 Grants ar•J L(*r 20 Dthc(C0n￿￿lThI &URCknesy￿* 21 Lw m CMTF to OsthciAthan￿ Fund 22 OthBrLMrtgc4rvJs 23 Totsl charl&￿0 0xp￿dI￿re Q34.473 -13216 -16.864 4.013 .X6,016 -17.266 -18.081 -14.1)Bg 10 12 13 14 Q,120 410 7.100 15 16 17 18 19 -2.145 41.684 . 45.732 -11032 473,136 -336.893 -s.￿12 -342.803 24 W incom￿{eXpend￿rt) 25 TransfeF5 Lthen fiJnds Ottw 27 Gaifts/ Lo￿5 28 Galnsi 29 Nèt movomerrt Sn funtl J) Toial funds brc4Jqht 31 Total funds carrled forward rm fV4aluabth Df fixed a55ets 21 -107 -107 -91.9J7 l591169 2,540.232 9,781 16B1.950 $92,169 161 586 Monles Recelv¢d & Passed on to External l>yntsatloTrK aalance brtyJBht F¢ywafd last Ywr 3R Offen￿lGiftS. receTr*d 33 offert￿lGIftS. BalaTrce Carrled Forward 6.471 Z<£gi?Zi) Name of Circuit: YEOVIL & BLACKMORE VALE MEfHODIST CIRCUIT NUMBER: 26-5 STATEMENT of FINANCIAL ACTIVITIES for YEAR ENDING 31AUGUST2019 CIA ￿etI￿di$l CFB & TMCPFunds c¢Yew TOTAL2D18-19 C&npari5 2017-18 Tn* FurMI Incom8 34,478 2.762 Z024 4021 .176 3.775 16.30) Z29.569 235.704 S Capi4 Rectiits 7 thartatAe 8 Total eharitabl• I￿om• 250 425 Expenditure 9 StyFwds. ￿ries. NIC & Per¢Ny)w515 10 Min15tet5tra¥d. te***¥*". nBtenas ar•)Krra$ 11 Manse CcÉt5 IC(xrnl Tax.￿* & Irwarnl 12 Manse rTwntenanr* rA￿S 13NAminislratscn e￿￿eS{eX￿￿1¥j 10abo*l 14 Fa￿lY7￿1ktrc(￿ lexd￿ln9 10 2C6.016 17266 122,60& 15.440 13.539 14.266 3.790 2.870 1.020 10 14IJB9 12 13 14 510 510 17 fvDYi5￿n5 18 Fees8 Ch¥ges 19 LLW4 15 16 17 18 19 2.145 2224 Yo,ooo 44.667 21 Lw m CMTF to Furxl 22 other￿1￿0(￿ 23 To131 charleabh exp•ndlhwg 032 12.091 363.617 9.510 371135 255,703 24 NTrt Incomdloxwndityrp) 25 Tw5fers betsEen fLwMts 26 Other 27 Gainsl Losses ZJ Gainsl L055e5 29 14pt movement in fvrrflj 30 Toial fund5 brLwqht fon¥ard 31 Total fund5 carr5ed forward 437 6?.￿27 62.( -27 Terfaluatiar¢ ol fixed assets 21 115 115 -19.781 16BI,950 1591169 24S 7￿ )957 2.e86.gB3 2,681.950 lance brouRht Forward fram last Year 32 Offenr8slGifts. re(eThvJ 33 OffenrgslGlfts. Passed Balance Carrled Forward Name of Circult: YEOVIL & BLACKMORE VALE METHODIS Clr¢ult No: 264 Balance Sheet as at 31August2020 TL*als 2020 Tol* 2019 TYu*5 FlxedAss¢i# 11 Land & Bulldl 12 E 6S1 t.688.￿) 1,688,( 1,688.C(KJ nt 13 Investment 14 Investft*n 6S2 rtle5 BS1 BS3 6.973 .973 6.973 2 034 973 2.028.r 2.035.080 CuTheniA$8rt 16 Deblois & PF 17 Cash al Bank & In hand 18 Inve5tmentswrth TMCP 19 Centrat Fi￿ar￿ 8o*d 8S4 BS5 BS6 14.609 14.( 148,652 316.416 59,627 539,304 18.313 80,696 370,900 124,452 594.361 148.852 212.191 ICbJ.022 8S5 59,627 435.079 10).IJ22 UTront Ib•bUtha Efflltor5 IdLEln wwJ¥ I 87 26.945 26.945 7,1LX) 34.045 Y)5,259 23.072 7.100 30,172 564.189 22 Grants ¥￿1￿ 202&21 7.11K) 34.045 401.034 Total GwrexrtlMbiiities 1(Kl.022 4,203 2.429.034 1(￿.995 4.203 2,540.232 2.599.269 term lfjabilihe5 Idue alter rnore than one y*arl 26 Grants payable aft£( 2020-21 27 Loan5to the 7.100 Atetassets 2.429.034 1(￿.9￿5 4.203 2.540.232 2.592.169 FU￿15 olthe Clrtult eral FurKI Cwcuil 14oddTru$i FutvJ (unres1￿1ed) nated Funds 2.429.034 2,429,034 2.426.380 161.586 2,536,029 4,203 2,587,966 4.203 En￿tr￿1 FM(L8 2.429.034 1{￿.995 4.203 2,540,232 2,5g2.169 Signed Circurt Treasurer 24 SIPAO DECLARATIONS Treasurnr I confimi Ihai I hav• propar•d Ihe a¢¢ounls from ￿ recwdj oftrt CKc4il and they fLY¥Js ￿l￿er the control ol Ihe Meebng Siwature ol Tftasurer N8rne Dr Kevin Michael Fish•r A¢Jdress HtyJse. Br￿1￿ Road DT9 4HP Presentation to the Circuit PA•oling lor approval. .Afinn Ihat ihe Acwunts have been wesented to Cwcuit Meel*¥J and were approved Signature ol the ActiThJ Chair of ihe Meding Name ol the Acbrrfj Ch•r of the Meebn9 Dale cja ZJ Indeppn¢lent examlnefs Roport to th• TnM51•ts 01 th¢ YEOVIL & BLACKMORE VALE PaEfHODIST Cir¢ult This Report b5 on the Q'rcurtAttoJnls lty the year eThJed 31¥Awst Respective responsibilitle* of Trnstees and Examiner The thanty's Irustaes ale r•skw%ble fof Ihe preparatmin 8c£ounts. The Chanty's Trustee$ COftSKler Ihat audit 15 nol ￿1)u•re￿ for this year u￿r SectK)n 144 01 thè ChwitiesA(* 2011lthe Ch•ril*sAcll and that an IrKleperideni eXa[rffnati￿ needed. Examinatson iKudts a re¥itrN of Ihe *QUfibng r¥tyrts keF4tythè chartyaTrJ a cfyryar¢on of accounts presentad wilh those reL¢rds. It atso inctudesc0￿￿delal￿ ol unLsua14￿s ord￿*￿￿5 in the ￿Unts. ar## s8thn9 explanations frryn you as Trusthes any malleF5. The underlaken do not prowth 8U the ev￿￿n￿ thaiwould ￿ reouweil In an audit and ¢￿seq￿ty no is oNem as tr•wheth¥ a￿u￿tspreS¢TrLa Independent Examlner* Statement In connedion with my exaNn*ion. ￿ matter come w my •t￿l￿)n.. which gives me r*as￿￿ ￿￿Se to tefEve that in any matttial FEspe¢tthe rewtrerrtents: . lo keep a¢cwnting records in ￿•v(l￿w￿ Sedbjn 130 olthe Char￿A￿. aeojuntnig requiremenis ofthe CharfvAd have nol been ffleL" or lo whith. in my opiNon. aitention shtyJld be thawn in order to en8￿ a proper undwsiandiryj ol Ihe accounts to btr reached. Nazr &gnaThJre Relevant Profes*onal qualif￿*[th or body Address Y ¢-L.'L ginces￿ SAIC i A Xci **Notes to the Accounts for year Ending 31st August 2020** ## **Yeovil & Blackmore Vale Circuit of the Southampton District of the Methodist Church No 26-05** ## **1. Accounting framework and accounting policies** ## **i Accounting framework** The financial statements have been prepared under the Charities Act 2011 in accordance with the 2014 version of _Accounting and Reporting by Charities: Statement of Recommended Practice (SORP)_ applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective from 1 January 2015) – (the Charities SORP (FRS 102) as amended by Update Bulletin 1) – in replacement for the SORP’s 2005 version specified in its related 2008 Regulations and in accordance with the “true and fair override” provision contained therein. ## **ii Public benefit entity** The Yeovil & Blackmore Vale Methodist Circuit meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes below. ## **iii Basis** These accounts have been prepared on the basis of historical cost except that investments are shown at their market value at the end of the year on the accruals basis to show a true and fair view of the Circuit’s financial position and activities. ## **iv Content** The financial information presented is relevant, reliable, comparable and complete. Where estimates are used these are based on experience, research and judgement. The accounts are expressed in £Sterling, rounded to the nearest pound. ## **v FRS102 SORP2015** This is the fifth year that the FRS102 SORP 2015 has applied to the Circuit’s accounts. These accounts are compliant with FRS102 and with the FRS102 SORP 2015. ## **vi Going concern** Based on the monetary assets and human resources available at 31 August 2020, the trustees believe that the Circuit is a going concern. ## **vii Consolidation** The Circuit has denominational regulatory oversight in respect of the work of the 16 Church Councils in the Circuit but has no legal or operational control of those Church Councils and their Governing Bodies except in extreme circumstances, none of which were applicable in this accounting period. For this reason, the financial statements of the Churches within the Circuit are ## **viii Income recognition** Income is included in the Statement of Financial Activities (SOFA) when the Circuit becomes entitled to the resources, when the trustees are reasonably certain they will receive the resources and when the monetary value can be measured with sufficient reliability. No attempt has been made to measure the value of services donated by volunteers. The Circuit acts as Agent for donations from Circuit Churches and individuals to various Connexional and National Charities. These are shown on the SOFA as _“Offerings/Gifts received for, and passed to, External Organisations”_ and are listed in Note 23 following. 1 **Notes to the Accounts for year Ending 31st August 2020** ## **ix Expenditure** This is recognised when a liability is incurred, or a constructive obligation arises, that results in the payment being unavoidable. Liabilities are recognised as soon as an outflow of economic benefit is considered more likely than not under the legal or constructive obligation committing the Circuit to pay out resources. ## **x Grants** Grants made by the Circuit from it’s own funds are recognised in full when the award is made once the Circuit accepts that there is a legal or constructive obligation to make the payment and that such payment is probable. When such a grant 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 (split between monies due in the following FY and monies due in the longer term), the Provision being released in future years as instalments are paid within the terms originally agreed by trustees at the Circuit Meeting. ## **xi VAT** Since the Circuit is not VAT registered, all input VAT is charged with the expenses to which it refers. ## **xii Tangible Fixed Assets** Equipment assets are capitalised if they can be used for more than one year, and individually cost at least £1,000. Typically a 3-Year depreciation policy is then utilised (see Note BS2). All properties are shown in the Balance Sheet at their current market values, stipulated as the Deemed Cost (see Note BS1). Land values have been separated and an estimate made for fixtures and fittings. All properties have been reviewed for impairment. ## **xiii Investments** The investments of the Circuit are held by the Trustees for Methodist Church Purposes (TMCP) as custodian trustees. The valuations, at market value, are those provided by TMCP. The unrealised gains/losses arising on investments at the end of the year are shown in the SOFA and in Notes 22 and BS3 below. ## **xiv Receivables and Payables; Bank and Cash** Debtors are stated at the amounts owed to the Circuit or prepaid. Creditors are initially recognised at settlement amount after any trade discounts, where normal credit terms apply, or amount advanced to the Circuit. Subsequently creditors that are current liabilities are measured at the cash or other consideration expected to be paid. The liquid funds of bank balances and deposit account balances are shown at the realisable values. ## **xv Expenses** The Circuit has a policy, agreed at Circuit Meeting by trustees in 2014, that all trustees may claim for appropriate expenses in the course of their duties on behalf of the Circuit. Claims for books, materials, stationery and postage must be submitted with receipts. Certain Lay employees are given a monthly allowance to cover costs of telephone and internet expenses.All claims are submitted on standard forms for scrutiny by the Circuit Treasurer. As with all expenditure any payment is counter-authorised by another, named, Trustee before payment. Motor vehicle travel cost rates are set by Connexion in agreement with HMRC. Currently they are 45p/mile for cars and 24p/mile for motorcycles. If passengers are taken on journeys for Circuit business then a further 5p/mile per passenger may be claimed. Expenses are typically paid monthly in arrears. September payments are therefore counted as accruals against the previous financial period. 2 **Notes to the Accounts for year Ending 31st August 2020** ## **2. Glossary of terms** **CFB:** Central Finance Board of the Methodist Church manages a Common Deposit Fund and a series of pooled investment funds for Methodist entities in Great Britain and provides investment advice to those entities **Church:** a group of members from at least 5 to more than 100 **Circuit:** a group of Methodist Churches within the same geographical region typically between 10 and 30. In our case 16. **CLT:** Circuit Leadership Team. A group of Circuit trustees responsible, at the will of the Circuit Meeting, for the day-to-day administration and policy formulation of the Circuit. Currently the CLT comprises the Ministers stationed in the Circuit, the Circuit Stewards, the Circuit Administrator and the Circuit Property Secretary. **CMTF:** Circuit Model Trust Fund (Unrestricted) **Connexion:** The Methodist Church in GB which includes the Head Office at Methodist Church House, all Methodist Districts, Circuits and Churches in Great Britain **District:** a group of contiguous Circuits, usually between 15 and 30 **FRS:** Financial Reporting Standard **FRSSE:** Financial Reporting Standard for Smaller Entities. **FY:** Financial Year **MMPS:** Methodist Ministers’ Pension Scheme **SOFA:** Statement of Financial Activities **SORP:** Statement of Recommended Practice **TMCP:** Trustees for Methodist Church Purposes, the legal owner and Custodian Trustee of all Methodist Model Trust property, including Legacies, Endowments and Accumulated Funds ## **3. Prior year: Restatement of comparative figures** In preparing the accounts the trustees have considered where, in applying the accounting policies required by the Charities SORP(FRS102), any comparative figures have needed restatement. This year no restatements are required for prior year categories in the SOFA. No substantive adjustments were necessary for bringing the Balance Sheet shown in the 2018-19 Accounts forward into this year’s comparison. **3A. Statements required by SORP** There have been no “Related Party” transactions in the Charity’s Accounts during this Financial Year. The Charity was created in September 2014 by the merger of 2 Methodist Circuits. these were the Sherborne and Yeovil Circuit and the North Dorset Circuit. 3 **Notes to the Accounts for year Ending 31st August 2020** ## **4. Donations, Grants & Legacies (SOFA Line 1)** This category of Income includes donations made by a trustee directly to the Circuit together with its associated Gift Aid reclaimed from HMRC. **This amounted to £928.** Grant Income was received as shown in the table below:- |**Organisation from which Grant was**
**received**|**Purpose of Grant**|**VALUE £**| |---|---|---| |**Southampton District**|Vine Youth Ministry|6,000| |**Southampton District**|Support towards Diaconal Project|10,000| |**Hazelbury Bryan Methodist Church**|Support towards Diaconal Project|2,000| |**Sturminster Newton Methodist Church**|Support towards Diaconal Project|1,000| |**Kings Stag Methodist Church**|Support towards Diaconal Project|1,000| |**Southampton District**|Family Worker @ Shaftesbury/Motcombe|4,100| |**Recharge of Family Worker Costs to Shaftesbury**|Family Worker @ Shaftesbury/Motcombe|7,653| |**Recharge of Family Worker Costs to Motcombe**|Family Worker @ Shaftesbury/Motcombe|2,551| |**TOTAL**||**34,304**| The Vine Youth Ministry grant from Southampton District was paid on to VYM together with the Circuit’s own grant (see Note 16). The grants from District and individual churches to support the Diaconal project were all paid into the Circuit Current account to offset costs. The Recharges listed above represent the surplus cost over the Financial Year for the Family Worker based in the East of the Circuit (salary, NI, Pension and Expenses claimed from Circuit Funds) minus the grant funding from District and Circuit funds. This surplus cost was split 75% to Shaftesbury & 25% to Motcombe, as shown below:- ||**£**|| |---|---|---| |**Total Cost of Family Worker -**
**full Year**|18,404|| |**less Southampton District**
**Grant**|-4,100|| |**less Circuit Grant**|-4,100|| |**Surplus Cost for Recharging to**
**Churches**|**10,204**|Split 75% Shaftesbury & 25% Motcombe| 4 **Notes to the Accounts for year Ending 31st August 2020** ## **5. Income from Monetary Investments (SOFA Line 2)** The majority of Circuit funds are held in basic interest accounts, without exposure to financial money markets, thereby respecting our current low-risk approach to Reserves. A small amount of Reserves in the CMTF are held in Funds approved by TMCP/CFB resulting in Dividend income as shown below plus Gains/Losses on assets shown separately on line 28 of the SOFA. ||**Unrestricted Funds**|**CMTF**|**Restricted Funds**|**TOTAL**| |---|---|---|---|---| |**CFB**|646|||**646**| |**TMCP Interest**|1,821|1,286|36|**3,143**| |**TMCP Dividends**||132||**132**| |**TOTAL**|**2,467**|**1,418**|**36**|**3,921**| ## **6. Income from Investment Properties (SOFA Line 3)** The Circuit has 6 residential buildings in it’s portfolio, all of which have been used to house Ministers in the past (Manses). During FY19/20 the Circuit trustees budgeted for 5 Ministers to be in residence in manses (at Yeovil, Gillingham, Shaftesbury, Sherborne and Sturminster Newton). This left us 1 property which we have been commercially leasing at market rates and using for investment income. This “spare” manse is in Yeovil at Harbin Close. It has been Let to the same tenant from 28th June 2019 and throughout this Financial Year. Rental income and expenses are summarised in the Table below:- ||**GROSS**
**Receipts £**|**Mgmt**
**Fees £**|**Lease**
**Set-Up**
**Costs £**|**Expenses**
**paid**
**through**
**Agent £**|**Expenses**
**paid Directly**
**£**|**Insurance**
**£**|| |---|---|---|---|---|---|---|---| |**24, Harbin**
**Close.**
**Yeovil**|**14,400**|**-1,728**|**-108**|**0**|**-352**|**-714**|**11,498**| |**Poplar**
**Drive.**
**Yeovil**||||**98**|||**98**| |**TOTAL**|**14,400**|**-1,728**|**-108**|**98**|**-352**|**-714**|**11,596**| The property is being let through Estate Agents under an Assured Shorthold Tenancy. The Circuit pays management fees (12% of income) to the Agents and covers maintenance costs through the Agent. Most running costs are paid directly by the tenant. The Circuit pays Buildings insurance on properties directly. The costs relating to Harbin Close has been broken out and included in the expenses column in the Table above. The Agent reimbursed the Circuit for Monies held on account from the tenancy at Poplar Drive which ended earlier in 2019. Expenses paid directly from Circuit funds were for boiler servicing and for the Estate Management charges of Harbin Fields. The figure reported in Line3 of the SOFA is the NET Income received, as detailed in the yellow box on the Table. 5 **Notes to the Accounts for year Ending 31st August 2020** ## **7. Income from Assessments on Churches (SOFA Line 4)** This is the primary source of regular Income for the Circuit at the heart of the Methodist Connexional structure. There are 16 church councils in the Yeovil and Blackmore Vale Circuit and these separate Charitable bodies act together to support Ministry within the total area they cover. This includes the primary expense of Ministerial staff and part-time Lay Workers together with their associated costs. They also, through quarterly Circuit Meetings, determine whether funds should be allocated to work in specific churches and grants made to other Charitable bodies. In order to do this each church is assessed for an annual contribution to meet net Circuit Expenditure (taking into account other sources of Income available to the Circuit). The Circuit has now been in existence for 6 years and the individual payments received from Churches is largely on a historical basis. Currently the total does not fully cover net Expenditure. The budgeted deficit in FY20119-20 was £105,600 to be made up from Circuit Reserves. In the current 5 Year Plan up to 2023 this deficit has been budgeted to continue and to be covered from Reserves. We had begun to investigate whether there was a different, more formulaic, mechanism for splitting the total Assessment required between the 16 churches but we have decided to stay with the current arrangement with individual adjustments. The levels agreed by the Circuit Meeting in March 2019 for FY2019-20 for individual churches are shown in the Table below. They represent a 2% increase on previous year levels. ||**FY2019/20**| |---|---| |**Bell St. Shaftesbury (incl Ashmore)**|**40,974**| |**Cheap St. Sherborne**|**38,964**| |**Gillingham**|**37,434**| |**Vicarage St. Yeovil**|**26,826**| |**Preston Rd. Yeovil**|**24,090**| |**St. Mark's. Yeovil (includes Loan Repayment)**|**13,422**| |**Sturminster Newton + Broad Oak**|**12,738**| |**Tisbury**|**9,666**| |**Marnhull**|**8,736**| |**Motcombe**|**8,598**| |**Wincanton**|**7,938**| |**Hazelbury Bryan**|**3,936**| |**Yetminster**|**2,124**| |**Ibberton**|**1,878**| |**Longburton**|**1,620**| |**Kings Stag**|**1,344**| |**TOTAL**|**240,288**| Assessments on Churches are monthly in advance and are treated as pre-payments on a Receivables basis. 6 **Notes to the Accounts for year Ending 31st August 2020** St Marks church, Yeovil, had a loan of £7,500 from Circuit Funds at the end of the FY 2017-18 to assist in roof repairs. This is being paid back over 5 years at £1,500pa. This amount for FY2019-20 is included in the assessment table above. Some of our smaller churches failed to make the 2% uplift in either, or both of, August 2019 & August 2020. **Monies received totalled £240,224** - a shortfall of £64 from the table on the previous page. The new Circuit Treasurer will address this in the next Financial Year. ## 8 **. Expenditure on Stipends, salaries, NIC & Pension Costs (SOFA Line 9)** This category is, by far, the biggest item of Expenditure in the Circuit’s activities but is clearly at the heart of what we do in our community. The Circuit paid Stipends to 4 Methodist Ministers and 1 URC Minister in this Financial Year. Costs were as follows:- |**MINISTER’S**
**PAYROLL**|**GROSS SALARY**
**£**| |---|---| |**Methodist Connexion**
**4 FTE Ministers**|**139,125**| |**URC Synod Salary Costs:**
**Rev Duncan Goldie Full Year**|**35,423**| |**TOTAL STIPENDS**|**174,548**| Stipends are paid directly to Methodist Ministers through the Methodist Connexional payroll. The Circuit pays the Connexion a month in advance so August direct debits are treated as prepayments. Most ordained Methodist presbyters and deacons are members of the Methodist Ministers’ Pension Scheme (MMPS). This is a defined benefit scheme which is currently in deficit. Large %age contributions vs stipend of 26.2% are part of a long-term plan to reduce these deficits. We have begun to incur costs relating to the Government’s Apprenticeship Levy, linked to our Ministerial employee payroll costs. These are included in the Table above. The Circuit was fortunate in obtaining the appointment of a URC Minister stationed at Sherborne in June 2018 following a vacancy lasting almost 2 years. Rev Goldie’s remuneration package is handled centrally by the URC office through their “Maintenance of the Ministry” (M&M) office in London. Specific details of gross salary, pension contribution & NIC contribution are not made available to the Circuit. The URC Church instead makes a monthly direct debit for these costs. 7 **Notes to the Accounts for year Ending 31st August 2020** The Circuit also employed 4 part-time Lay staff, one in Administration and three in Family/Children work. The salary costs of these are shown in the table below:- **GROSS SALARY LAY EMPLOYEES £ TOTAL 59,925** The hours worked by these 4 employees is the equivalent of 2.56FTE (Full Time Equivalent). All staff were paid hourly rates above the Living Wage (outside London), according to Methodist Connexional directives. No employee received employee benefits of more than £60,000 in the financial year. There is no accrual for holiday pay. The Circuit offers a Defined Contribution pension plan administered by The Pensions Trust (TPT). All of Lay employees are in this scheme. The Circuit make a contribution of 6% of salary (in line with Methodist Connexional directives). Our Staging Date with the Pensions Regulator was 1st August 2017. A one-off charge is made annually by the Methodist Connexional payroll team to cover payroll costs (£480). In addition we have begun to incur costs relating to the Government’s Apprenticeship Levy, linked to our Lay employee payroll costs. They have been split 1/3rd to Administration costs and 2/3rds to Family Worker Costs. ## **9. Expenditure on Minister’s travel, telephone & materials Costs plus Relocation & Removal expenses. (SOFA Line 10)** See Note 1xv for details of policy on expenses claims. Telephone and internet facilities were provided at 4 of the manses occupied by Ministers. The same provider, PlusNet, was used to obtain maximum rebate and benefits. All 4 contracts are taken on an “unlimited use” basis and the Circuit picks up all costs accordingly except for International calls or other items individually logged by the service provider for which ministers pay directly. In the other manse the Minister chose to adopt a different provider. An allowance of £25/ month was paid to cover costs in line with the PlusNet contracts. The Table below summarises total expense claims in 4 categories:- |**MINISTERIAL EXPENSES**|**REIMBURSEMENTS £**| |---|---| |**Travel**|7,622| |**postage; stationery; materials; books**|2,739| |**Telephone & internet**|2,255| |**Relocation & Removal**|600| |**TOTAL**|**13,216**| 8 **Notes to the Accounts for year Ending 31st August 2020** ## **10. Expenditure on Manse Running : Council Tax,Water Rates, Insurances (SOFA Line 11)** As previously stated, the Circuit is Managing Trustee for 5 manses occupied by Ministers stationed in the Circuit. These are itemised in Note BS1 which follows later. The Circuit pays for council taxes, water rates and insurances on these properties. HMRC does not regard these expenses as benefits-in-kind in the hands of the Minister. The total costs of these items to the Circuit are disclosed (net of rebates received for council tax and water rates) in the Table below:- ||**Costs £**|**Rebates £**|**Net Total Costs £**| |---|---|---|---| |**Council Taxes**|12,718|-578|**12,140**| |**Water Rates**|2,001|-69|**1,932**| |**Insurances**|2,792|0|**2,792**| |**Net Total Costs**|**17,511**|**-647**|**16,864**| No attempt is made to identify pre-payment or accrual issues with any of the above expenditure. Council taxes are billed by DD monthly, usually spread over a 10 month period. Water rates are billed half-yearly. All properties are metered for supply and usage appears similar in both periods. Insurances are paid annually in advance on 17th September and the cost is wholly taken in that financial year. ## **11. Expenditure on Manse Maintenance (SOFA Line 12)** For the first time in the last 3 years running expenditure was significantly down and underspent against budget. Spend is summarised by manse in the Table below:- |**Granville**
**Way**
**Sherborne £**|**Ridge Way**
**Shaftesbury**
**£**|
**Barnaby Mead**
**Gillingham £**|
**Manston**
**Road Stur**
**Newton**
**£**|**Poplar**
**Drive**
**Yeovil**
**£**|**TOTAL**
**£**| |---|---|---|---|---|---| |996|640|404|391|582|**3,013**| For all manses there were “annual” type costs relate to routine servicing of gas boilers and appliances, alarm systems and electrical checks. The property at Granville Way attracts “Estate Management” fees. None of this expenditure was considered as a benefit-in-kind to the resident Ministers under HMRC guidelines. The Circuit appoints a manse steward for each manse to liaise with Ministers over maintenance and improvement issues and our Circuit Property Secretary, Mr Philip Butler, has been very involved in all work this year. Our thanks go to him for all of his hard work and detailed attention. Annual inspections are also carried out. The Circuit believes that all 5 properties are in good condition and that there is no requirement to identify Accruals for work at this time. 9 **Notes to the Accounts for year Ending 31st August 2020** ## **12. Expenditure on Administration (SOFA Line 13)** This category is used to cover expenses and expenditure relating to the Circuit offices in Yeovil and Gillingham in addition to expenses incurred by trustees in pursuance of general activities within the work of the Charity. Details are given in the table below:- ||**Admin**
**employee**
**Expenses £**|**Other Trustees**
**Expenses**
**£**|**General**
**Expenditure**
**£**|**TOTAL £**| |---|---|---|---|---| |**Travel**|33|260||**293**| |**postage; stationery;**
**materials; books**|256|259|154|**669**| |**Offce Equipment**|||2,341|**2,341**| |**Training**|||47|**47**| |**Offce Rental**|||1,100|**1,100**| |**Offce Services**|||466|**466**| |**Photocopying**|||834|**834**| |**Photocopying**
**Recharges**|||-342|**-342**| |**TOTAL**|**289**|**519**|**4,600**|**5,408**| The first column shows expenses claimed by the Circuit Manager in this category during the financial year. £200 of this was issued as Petty Cash needed for minor purchases. A detailed list of these items was kept and has been made available to the External Examiner. The second column gives a summary of expenses claimed by 3 members of the CLT (Trustees) in pursuit of Circuit duties. See Note 1xv for details of policy on expenses claims. Items listed in column 3 are not related to claims by individuals. The Circuit rents office space from Vicarage Street Church in Yeovil and contributes towards heating, lighting and telephone services. The office in Gillingham Church is used only occasionally and no charges are made. Office equipment costs were high because a security camera system was fitted at the rear of the Vicarage Street building to provide extra security for our Circuit Manager when in the office. This was not capitalised as a fixed asset because it is permanently fixed to the premises at Vicarage Street. Photocopying facilities were available at both offices. The full cost of these machines was picked up by the Circuit. Where outside users, including Circuit churches, used the facilities they were recharged at appropriate rates to cover costs. These figures are shown separately in the table above. In March the ownership of the Gillingham office copier was transferred to Shaftesbury church and it was relocated accordingly. The machine had zero book value so was transferred without payment. Operating costs from that point became the responsibility of the Shaftesbury church. 10 **Notes to the Accounts for year Ending 31st August 2020** ## **13. Expenditure by Family Workers (SOFA Line 14)** This category is used to cover expenses and expenditure relating to the work of the 3 part-time Family Workers in the Circuit. Details are given in the table below:- ||**TOTAL £**| |---|---| |**Travel**|1,174| |**postage; stationery; materials; books**|647| |**Telephone & internet**|120| |**Training**|119| |**Trips/Activities**|0| |**Advertising**|0| |**Computer Equipment**|60| |**TOTAL**|**2,120**| The Table summarises expenses claimed directly by our Family Workers in pursuance of their daily duties. See Note 1xv for details of policy on expenses claims. Minor expenditure on materials for the weekly activities of our 3 Family Workers is claimed in their expenses. ## **14. Depreciation (SOFA Line 16)** The Circuit currently has no equipment listed as Fixed Assets and being depreciated in line with the policy laid out in Note 1xii. ## **15. Expenditure on Fees and Charges (SOFA Line 18)** ||**Unrestricted £**|**CMTF £**|**Restricted £**|**TOTAL £**| |---|---|---|---|---| |**Current Account Bank**
**Charges**|116|||116| |**External Examiner fees**|1,214|||1,214| |**TMCP Admin Charges**|425|323|8|756| |**TOTAL**|**1,755**|**323**|**8**|**2,086**| Bank charges are transaction related and charged monthly on previous months activity. September figures are therefore taken as Accruals. The Circuit appointed Lanham & Francis Ltd as it’s External Examiner in October 2015 going forward on an annual basis. During the year the Circuit paid £756 to TMCP, the custodians of the Circuit’s investments (CMTF, DD Gifford Cluett fund, Trim Legacy fund and Women’s Work fund.). This sum is levied at 0.2% on the value of the funds and is shown as allocated to the three groups of funds: £425, £323 and £8 at line18 in the SOFA. 11 **Notes to the Accounts for year Ending 31st August 2020** ## **16. Expenditure on Grants and Loans (SOFA Line 19)** A grant to Vine Youth Ministry (VYM) was approved by the Trustees at the Circuit Meeting held on 13th December 2018. A total payment of £10,000 was authorised to be made; £4,000 in FY2018/19 and £3,000 in each of FY2019/20 and FY 2020/21. Southampton District also agreed grant funding for VYM. A sum of £6,000 was received in Circuit funds in September 2019 and passed on to VYM (see Note 4). VYM is a Registered Charity (No. 1131007) providing outreach to schools and young people in the Somerset & Dorset area. The Circuit’s Trustees also committed to support the work and costs of the Family Worker based at Shaftesbury & Motcombe at the June 2018 Meeting. A total of £13,000 was committed spread over 3 years at £4800; £4100; £4100. This Grant money, together with an equivalent amount from the Southampton District, is effectively deducted from the recharge to the 2 churches involved (See Note 4). |**Grant given To:-**|**Purpose**|**Value £**| |---|---|---| |**VYM (District Funds)**|Outreach in schools|6,000| |**VYM (Circuit Funds)**|Outreach in schools|3,000| ||**TOTAL**|**9,000**| ## **16A. Provisions (SOFA Line 17)** In accordance with Circuit Policy the Grants approved in 2018 for the work of VYM & the Shaftesbury/Motcombe family worker had already been provided for in the Balance sheet for this Financial Year (19/20). |**Grant Provision**|**VALUE £**| |---|---| |**VYM**|£3,000| |**Family Worker**|4,100| |**TOTAL**|**7,100**| 12 **Notes to the Accounts for year Ending 31st August 2020** ## **17. Expenditure on Levies made by Methodist & URC Regional and National bodies. (SOFA Line 20)** ||**£**| |---|---| |**(A) Southampton District Assessment**|8,367| |**(B) Methodist Church Fund Connexional Assessment**|38,585| |**(C) URC M&M Payment**|4,732| |**TOTAL**|**51,684**| Lines A & B in the Table above are collected by the Southampton District by monthly Direct debit as a single payment from our CFB funds. An error in calculation was made by the District treasurer so payments were reduced in January 2020 **.** The District Assessment is the Circuit’s contribution to the running costs of the Southampton District. The Methodist Church Fund Assessment is the Circuit’s contribution to the running costs of the Connexion. The total payment is calculated using a formula based on prior-year Ministerial and Lay staffing levels of the 12 Circuits in the District. It is reviewed annually and adjusted in September of each period. The URC M&M figure is the equivalent charge for the running costs of the URC Wessex Synod and the national URC organisation. It is calculated on a formula based on URC membership numbers in our 2 ecumenical partnerships at Sherborne & Shaftesbury. This is reviewed annually and adjusted in January of each period. ## **18. Expenditure on Levy on CMTF to District Advance Fund (SOFA Line 21)** The levy was deducted from the Circuit’s CMTF as one payment on 1st September 2018 based on total funds in the CMTF on 31st August of the previous period. On 31st August 2018 this was £230,957.37. The current measure of Levy is set at:2.50% for the first £100,000 5.00% for the next £150,000 7.50% for funds above £250,000 This calculation gave a Levy of **£5,579.29** taken from the Circuit’s CMTF. The District Advance Fund is used to support many initiatives in the 12 Circuits of the Southampton District including mission and outreach. 13 **Notes to the Accounts for year Ending 31st August 2020** ## **19. Other Expenditure (SOFA Line 22)** Items in this category are listed in the Table below. ||**Costs £**|**Repayments**
**£**|**TOTAL £**| |---|---|---|---| |**Supernumerary expenses**|989|-237|**752**| |**Local Preachers expenses**|1,351|-210|**1,141**| |**Quinquennial inspection costs**|2,475||**2,475**| |**Circuit Magazine & Website**|1,737||**1,737**| |**Retirement & Leaving Gifts**|100||**100**| |**First Aid Course Fees**|315|-60|**255**| |**TOTAL**|**6,967**|**-507**|**6,460**| Supernumeraries are Ministers who have retired but many still conduct worship and for that are paid £25 per Service plus travelling expenses (for levels see note1xv). All Supernumerary Ministers are encouraged to claim these expenses but not all do so. Local Preachers are accredited by the Connexion to conduct worship services in our churches around the Circuit. The Circuit encourages them to claim travelling expenses (at rates given in Note 1xv) but not all do so. The Circuit also pays for training materials to be used in their work. These expenses are co-ordinated through the Local Preachers Meeting, held quarterly. All premises in the Circuit, churches and manses, are required by Connexion to have an independent survey every 5 years. The cost of these surveys is born at Circuit level. Any actions identified in these surveys must be acted upon by the individual churches or, in the case of manses, by the Circuit. The Circuit has a website which attracts maintenance costs. The Circuit also publishes a printed quarterly newsletter which is distributed throughout all churches in the Circuit as a means of fellowship, communication and outreach. ## **20. Transfers between Funds (SOFA Line 25)** A sum of £50,000 was transferred from the Circuit’s Model Trust Fund into the Circuit’s Current Account in August 2020 to cover the second year’s costs of the Diaconal outreach work. The sum of £28 shown in Line 25 of the SOFA is the interest on the Restricted Women’s Work Fund being paid into the Circuit’s Bank Account (unrestricted). ## **21. Gains/Losses on Revaluation of Fixed Assets (SOFA Line 27)** The Circuit intends that these Asset Valuations, given in Note BS1, will be fixed as the “Deemed Cost” at least for the next Financial Year with a review to take place in July 2021 (unless major market changes apply). 14 **Notes to the Accounts for year Ending 31st August 2020** ## **22. Gains/Losses on Investment Assets (SOFA Line 28)** This relates to relatively small investments held in Funds in the CMTF (See Note BS3). ## **23. Monies Received & Passed on to External (Related) Organisations** ## **(SOFA Lines 32 & 33)** The Circuit acts as an Agent for it’s churches in order to consolidate charitable giving to other Charities & Related Parties. Churches send cheques made payable to the Circuit with specific directions concerning to which Charities/Related Parties they should be paid. This giving is summarised below:- |**RELATED PARTY FUNDS**|**FY 2019/20**
**£**|**Previous**
**Year £**| |---|---|---| |**Connexional Fund for Property**|1,340|1,335| |**Connexional Methodist Minister’s Housing Society**|644|648| |**Connexional Fund for Support of Presbyters &**
**Deacons**|584|588| |**Methodist Mission in Britain Fund**|626|590| |**Methodist World Mission Fund**|1,791|1,690| |**Methodist “All We Can” Fund**|296|703| |**Methodist Homes for the Aged**|445|140| |**SUB TOTAL**|**5725**|**5,694**| |**EXTERNAL CHARITIES**||| |**Leaders of Worship & Preachers Trust**|580|353| |**Action for Children**|77|75| |**Vine Youth Ministry**|0|0| |**Methodist Women in Britain ; Annual Project**|0|349| |**SUB TOTAL**|**657**|**777**| |**TOTAL**|**6,382**|**6,471**| A total of £6,382 was paid out to the above charities in this Financial Year. 15 **Notes to the Accounts for year Ending 31st August 2020** ## **BS1 Circuit Manses and Investment Properties (Balance Sheet Lines 11 & 13)** The Circuit is Managing Trustee for 6 residential buildings. In FY2019/20 five of these were occupied by Ministers stationed in the Circuit and are described as Manses. The circuit is obliged by Connexion to provide these Manses which must meet specific requirements (eg. 4 Bedrooms minimum and a separate Study room). The Circuit is directly responsible for the payment of Council Taxes, Water Rates and Insurances on these properties. The Circuit also chooses to provide telephone and broadband facilities. The Manse at Granville Way, Sherborne is part-owned. The Methodist Connexion through the Circuit has a 52% share and the URC Wessex Synod has a 48% share. During FY2019/20 the other property was being used to provide Investment income for the Circuit. This is being Let through an Estate Agent under an Assured Shorthold Tenancy. The Circuit pays management fees (12% of income) to the agents and covers maintenance costs. All running costs are paid directly by the tenants. Given the requirement in FRS102 to split out property values into Land and Buildings it was considered necessary in July 2016 to undertake a review of property asset values. The Trustees decided, at the Circuit Leadership Team meeting held in November 2016, to adopt a “Fair Value” approach looking at the approximate Market Value of each property (in discussion with Estate Agents and Zoopla / Right Move websites). In each case the value of Land was estimated as 25% of the Market Value. Furthermore the fixed asset value of fixtures, fittings and equipment at each Manse and Investment Property was revalued at £20,000 per building on the basis of replacing “new for old”. The Circuit intends that these Asset Valuations will be fixed as the “Deemed Cost” for the next Financial Year with a review to take place in July 2021 (unless major market changes apply). The Asset Values used in this FRSSE Balance Sheet are shown in the Table below. Note that only 52% of the Market Value has been used for the Granville Way manse to reflect the part ownership by the URC. They do not share in the fixtures/fittings etc nor in the ongoing running costs of the building so the full value of £20,000 is reflected on this line as shown in the table overleaf:- 16 ## **Notes to the Accounts for year Ending 31st August 2020** ||2014/15
SOFA|Market
Price
Estimate
July16||Buildings
Value 75%
£|Land
Value
25%
£|Fixtures,
Fittings &
Equipment
£|2019-20
SOFA
£| |---|---|---|---|---|---|---|---| |MANSES|||||||| |34, Poplar Drive.
Yeovil BA21 3UL|247,000|320,000||240,000|80,000|20,000|340,000| |24, Barnaby Mead
Gillingham SP8
4AL|253,000|340,000||255,000|85,000|20,000|360,000| |7, Ridge Way.
Shaftesbury SP7
9HB|237,000|320,000||240,000|80,000|20,000|340,000| |73, Granville Way.
Sherborne DT9 4AT|143,000|400,000|x0.52|156,000|52,000|20,000|228,000| |47, Manston Rd.
Sturminster DT10
1AE|275,000|400,000||300,000|100,000|20,000|420,000| |MANSES TOTAL|**1,155,000 **|**1,780,000**||**1,191,000**|**397,000**|**100,000**|**1,688,000**| ||||||||| |INVESTMENT
PROPERTIES|||||||| |24, Harbin Close.
Yeovil BA21 5FS|**295,000**|**320,000**||**240,000**|**80,000**|**20,000**|**340,000**| ||||||||| |TOTAL|**1,450,000 **|**2,100,000**||**1,431,000**|**477,000**|**120,000**|**2,028,000**| On the Balance Sheet the Fixed Asset Value of the 5 Manses (£1,688,000) is listed as Unrestricted. Strictly speaking, a better description is “Designated” since they are an integral aspect of the Circuit’s employment of each Minister. As such they cannot be readily translated into Cash. ## **BS2 Tangible Fixed Assets : Equipment (Balance Sheet Line 12)** In FY15/16 the Circuit trustees adopted a Policy (see Note 1xii) whereby Equipment assets are capitalised if they can be used for more than one year, and individually cost at least £1,000. Typically a 3-Year depreciation policy is then utilised. No attempt has been made to re-evaluate equipment purchased before FY15/16. All such equipment, for offices, manses and investment properties, was purchased outright in previous FYs without depreciation rules applying. 17 **Notes to the Accounts for year Ending 31st August 2020** ## **BS3 Tangible Fixed Assets : Investments (Balance Sheet Line 14)** The funds contained in the Circuit Model Trust Fund and other Investment Funds are held by TMCP. These are regarded as medium and long term investments. TMCP is the legal owner and Custodian Trustee of all Methodist Model Trust property, including Legacies, Endowments and Accumulated Funds. Trust property is held for and on behalf of local Managing Trustees who are responsible for the day to day management of trust property. TMCP ensure that, through providing guidance and acting under their direction, the Managing Trustees comply with charity law and Methodist law and policy as determined by the Methodist Conference. The majority of funds are held in simple Trustees Interest Funds (cash reserves) on which interest is credited to the accounts each month/quarter. This reflects our current low-risk approach to Reserves. A small amount of funds in the CMTF are held in Managed Equity Funds. Interest and dividends are again paid monthly/quarterly on these funds but unit revaluation is made annually by TMCP and the movement of this is reflected in Line 28 of the SOFA (see Note 22). Details are given in the Table below:- |**FUND**|**Units Held**|**Mid Price/**
**Unit Sep19**
**pence**|**Mid Price/**
**Unit Aug20**
**pence**|**Value**
**Sep19**
**£**|**Value**
**Aug 20**
**£**|
**Movement**
**£**| |---|---|---|---|---|---|---| |**2C100 CFB**
**Managed**
**Mixed**|1,331.00|481.90|473.40|6,414|6,301|-113| |**2C122 CFB**
**Managed**
**Fixed**
**Interest**|310.00|214.90|216.90|666|672|6| |**TOTAL**||||**7,080**|**6,973**|**-107**| 18 **Notes to the Accounts for year Ending 31st August 2020** ## **BS4 Debtors and Prepayments (Balance Sheet Line 16)** All sums shown as Debtors at 31st August 2019 were received during the current FY ( or in the case of Ministerial stipends were paid one month in advance). Accordingly, it is expected that payments in advance at 31 August 2020 will be expensed in FY 2020/21. Debtors at 31st August 2020 were:- |**DEBTORS**|**31Aug2020 £**| |---|---| |**Ministerial Stipends (paid in August for September)**|11,809| |**Gift Aid Refund on Private Giving to Circuit**|169| |**Q4 Recharge for Family Worker**|2,631| |**TOTAL**|**14,609**| Photocopying recharge invoices aren’t issued until the end of August meaning collection doesn’t take place until September. HMRC take 2 months to process our Gift Aid claim. Payment is due in October 2020. The Circuit picks up most bills for the family worker based at Shaftesbury and Motcombe (including salary etc). Once grant payments from District & Circuit have been deducted the surplus cost is recharged to the 2 churches. The debt in the table is for Q4 costs in FY2019/20. ## **BS5 Cash at Bank & In Hand (Balance Sheet Lines 17 & 19)** ||**31Aug2020 £**|**31Aug 2019 £**| |---|---|---| |**Lloyds Current Account**|**148,652**|80,696| |**Cash in Hand**|**0**|0| |**Central Finance Board deposits**|**59,627**|124,492| Monetary Balances held in the Circuit’s Current Account with Lloyds plc and with Central Finance Board of the Methodist Church are available on demand without loss of interest. All of these funds are shown as Unrestricted. Cash is not kept “In Hand” for Circuit purposes. Monies may be transferred from the CFB deposits only into the Circuit Current Account at the direction of the Circuit Treasurer or the Superintendent Minister independently. Withdrawals from the Current Account must be countersigned by 2 of 3 designated trustees either by cheque or BACS transfer. A number of direct debit arrangements exist specifically for Manse service providers. Balances and transactions in the Circuit’s Current Account can be seen and checked online by the Circuit’s 5 appointed signatories. Balances and transactions in the CFB account can be seen and checked by the Circuit Treasurer and Superintendent Minister. 19 **Notes to the Accounts for year Ending 31st August 2020** ## **BS6 TMCP (Balance Sheet Line 18)** The Table below summarises the CASH balances held in TMCP Funds at the Year End. All of these monies are held in Trustees Interest Funds (2C110) as a Cash value. |**Fund**|**Ref**
**Number**|**Designation**|**Value @ 31Aug20**
**£**|**Value @ 31Aug19**
**£**| |---|---|---|---|---| |**DD Gifford Cluett**|**18798**|Unrestricted|53,086|53,086| |**Trim Legacy**|**19499**|Unrestricted|159,105|159,105| |**CMTF Y&BV**|**21958**|CMTF|100,022|154,506| |**Women’s Work**|**8127**|Restricted|4,203|4,203| |**TOTAL**|||**316,416**|370,900| As previously noted in BS3 a small amount of monies in the CMTF are held in Equity and Fixed interest Funds and are listed on Line 14 of the Balance Sheet (Note BS3). ## **BS7 Creditors & Accruals (Balance Sheet Line 21)** It is expected that all items accrued at 31st August 2020 will be paid during FY20/21. The Table below summarises Accruals made:- ||**31Aug2020 £**| |---|---| |**Advances on Assessments****|**20,366**| |**Telephone Costs at Manses**|**110**| |**Bank Charges**|**7**| |**Connexional Giving from Churches**|**5,280**| |**External Examiner Fees**|**1,182**| |**TOTAL**|**26,945**| Items marked (**) in the Table were received prior to 31st August 2020 to be accrued for FY20-21. Assessments are paid by churches one month in advance. Expenses for Ministers, Administration staff and Trustees, Family Workers and Local Preachers are paid monthly in arrears. Everyone was encouraged to submit expenses in the last week of August to minimise Creditor activity given the change of Circuit Treasurer at Year End. Bank charges are typically made one month in arrears. An estimate has been made to cover the costs of Externally Examining these accounts by Lanham & Francis. This is based on past cost data but is an estimate only. 6 cheques to Connexional charities were still outstanding at the end of August, presumably due to Covid-19 restrictions at Methodist House in London. 20 **Notes to the Accounts for year Ending 31st August 2020** ## **BS8 Provisions for Liabilities and Charges (Balance Sheet Lines 22 & 26)** The Table below gives details of Grant Commitments made by the Circuit for future years:- |**Grant Towards**|**FY2020-21**| |---|---| |**VYM**|3,000| |**Youth Worker; Shaftesbury & Motcombe**|4,100| |**TOTAL**|**7,100**| The first entry covers the Circuit’s commitment, taken by Trustees at the Circuit Meeting held on 13th December 2018, to donate funds to Vine Youth Ministry (See SOFA Note 16). The second entry covers the Circuit’s Commitment to support the work and costs of the Family Worker based at Shaftesbury & Motcombe made by Trustees at the June 2018 Meeting. A total of £13,000 was committed spread over 3 years at £4800; £4100; £4100. (see SOFA Note 4). 21 ** IATrled tyj thowJr••Jrn *th•$tO*mMlb• n(< b••n or Ic4i