**Circuit Accruals Accounts 2020-2021**
## **THE METHODIST CHURCH**
**REPORT AND ACCOUNTS (ACCRUALS BASIS)**
**for the year ended 31 August 2021**
**----- Start of picture text -----**
South Worcestershire Methodist Circuit
Registered Charity - Registration number 1164581
**----- End of picture text -----**
**----- Start of picture text -----**
District No / Circuit No 05/16
Ministers
Rev Helen Caine - Superintendent
Rev Nigel Coke-Woods
Rev Gary Molver
Rev Katherine Pickering
Rev Israel Selvanayagam
Circuit Stewards
Mr Jeremy Curtis
Mr Heath Watton
Mrs Cynthia Merriman
Mrs Christine Parker
Dr David Jones
Circuit Treasurer Ms Sandie Smith
**----- End of picture text -----**
## **South Worcestershire Methodist Circuit**
## **TRUSTEES' ANNUAL REPORT**
## _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **Introduction**
South Worcestershire Methodist Circuit was formed in September 2019 from the churches of South West Worcestershire Methodist Circuit and those from the Evesham side of the Stratford and Evesham Methodist Circuit. It is a small but vibrant circuit with churches based around the city of Worcester and the towns of Droitwich, Evesham and Malvern.
## **Aims and organisation**
As Methodists in South Worcestershire, mindful of ‘Our Calling’ and the Priorities of the Methodist Church, we seek to serve, enable, inspire and challenge our member churches to engage in God’s mission in a changing world by:
- Providing opportunities to grow together as Spirit-led, grace-filled, Jesus-centred people of God
- Assisting our churches in increasing awareness of God’s presence and sharing the love of God in our communities
- Helping our churches to work for justice and peace for all people, and care for the environment.
## **Review of the year**
South Worcestershire Methodist Circuit has fulfilled its objectives during the last year by supporting the churches within the Circuit providing Christian ministry in their IocaIities.
The year continued to be overshadowed by the COVID-19 pandemic. Happily churchs were able to open, although many found themselves with reduced in person congregations with some congregations still worshiped online from home. As the year progressed some churches found it increasingly more diffcult to reain open, and the Church Councils of two churches, Norton and Willersey, voted to close. These decisions are to be taken to the September synod for agreement. The Circuit has supported 5 full-time presbyters to exercise pastoral oversight of the 11 churches that make up the Circuit. The Circuit has aIso provided voluntary support and leadership in the form of LocaI Preachers and Circuit Stewards. There are many other office holders who support the churches with help and advice on property, finance, worship and work with young peopIe.
Our churches have supported charitable causes, both locaI and woridwide and severaI churches have buildings which are used by the Iocal communities where we serve, although this was curtailled in line with government guidance during the main lockdown and subsequent restrictions.
The Circuit continues to encourage varied work across the Circuit supporting a part-time Family Worker at Droitwich and a part-time PastoraI Worker in MaIvern. A new full-time Ecumenical Lay Worker (partly URC funded) started in the Evesham, Broadway, Willersey part of the circuit started work in August 2021. The part-time worker at Bromyard Road/Ombersley Road left in June 2021. Plans for a replacement are presently on hold.
## **Income and expenditure trends**
Circuit income is drawn from the assessment paid by the circuit churches.
Stipend expenditure has increased each financial year in line with conference approved increases. Lay salaries have increased in line with stipend expenditure
18.0% of expenditure is the Circuit contribution to the District annd Connexion, of which a significant part is used to fund the work of the wider Methodist Church.
## **Fund balances**
As at 31 August 2021 the net current assets of the Circuit were £211,363 giving approximately 7.8 months cover for expenditure.
## **Plans for 2021/22**
The current Superintendent Minister stood down from their post at the end of August 2021 and became part-time to facilitate the transition for the alteration of the Circuit, and the hoped for arrival of a Deacon based in Worcester City Centre from Septemer 2022. The new Superintendency will be based at Evesham Methodist Church from September 2021. Circuit financial plans for the coming year have therefore been prepared on the basis that there will be 4.5 full time ordained staff with anticipated cost of living stipend increases combined with the assessment paid to the district such that on average a 2.5% assessment increase has been requested from the circuit churches.
## **South Worcestershire Methodist Circuit**
## **Trustee’s Annual Report on Finance and Governance**
## **Basis of preparation 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 2015 as applicable to the Financial Reporting Standard(FRSSE) 2015
Full Name of Charity: South Worcestershire Methodist Circuit
Registration Charity Number: 1164581
Date of registration: 26 November 2015
Main communication address: 39 Barnes Way, Worcester, WR5 3AP
The members of the South West Worcestershire Methodist Circuit meeting are the Charity Trustees, membership being made up of circuit office holders, ministers and representatives appointed by the local churches.
Full membership is shown as Appendix A to this report.
## **Circuit Minister and Officers**
Active Circuit Ministers Rev Helen Caine Rev Israel Selvanayagam Rev Nigel Coke-Woods Rev Gary Molver Rev Katherine Pickering
Circuit Lay Workers Miss Anne Rich Mrs Sarah Jessop Miss Judy Oliver Circuit Stewards Mr Jeremy Curtis Mr Heath Watton Mrs Cynthia Merriman Mrs Christine Parker Dr David Jones
Administrator:
Ms Vanessa Hearn
Ms Sandie Smith acted as the principal officer overseeing the day to day financial management and accounting for the circuit during the year.
Independent Examiner: Mrs Eve Jennings 24 Dalziel Drive, Whittington, Worcester, WR5 2QY
Investment Bankers: Central Finance Board of the Methodist Church Trustees for Methodist Church Purposes
## **South Worcestershire Methodist Circuit**
## **Aims and organisation**
Charity objective is to act as a Resource provider within the area around Worcester, Evesham, Malvern and Droitwich 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
The organisation and resourcing of regular public acts of worship open to members of the church and non members alike. The teaching of Christianity through sermons, courses and small groups.
The resourcing of pastoral work including visiting the sick and bereaved.
Taking religious assemblies in local schools.
Promotion of Christianity through the staging of events and services.
Provision of chaplaincy services to the local university and other institutions.
## **Public Benefit**
We confirm the trustees 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 along with the Local Preachers meeting, the Circuit Finance and Property Committees and the Circuit Meeting.
## **Trustee Training**
A range of guidance produced by Methodist Connexion to support the effective running of the circuit , specifically 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.
## **Related Parties**
The Circuit is part of the Birmingham District and is also accountable to the Methodist Conference. The following Methodist Churches are linked to the circuit: St. Andrews Worcester, Droitwich, Bromyard Road, Ombersley Road, Norton, Lansdowne Crescent, Somers Park Avenue, Upper Welland, Evesham, Broadway, Willersey
## **South Worcestershire Methodist Circuit**
## **Risk Management**
The major risks have been identified and recorded by the Circuit Finance and Property Committee with professional advice taken as required.
There is a regular annual review process undertaken and recorded.
Income and Expenditure is being monitored in total and is compared regularly with the approved annual budget to detect trends as part of the risk management process to 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:
- the care and nurture of, and respectful pastoral ministry with, all children, young people and adults
- the safeguarding and protection of all children, young people and adults when they are vulnerable
- the establishing 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.
- 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.
- We will seek to work with anyone who has suffered abuse, developing with them an appropriate ministry of
- informed pastoral care.
- 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 South Worcestershire 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 South Worcestershire 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.
## **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 / or to be able to continue, in the short term, funding planned activities in the event of any inability to raise the full Circuit Assessment from churches.
05/16
**Name of Circuit**
**South Worcestershire Methodist Circuit**
**Number**
## **Statement of Financial Activities (SOFA) for the year ended 31 August 2021**
**----- Start of picture text -----**
Total Total
2020-21 2019-2020
£ £ £ £ £ £
Income and Endowments from:
1 Donations and legacies 12,113 12,113 -
2 Charitable activities - -
2a Assessments or share 309,444 309,444 308,780
2b Other - -
3 Other trading activities - -
3a - Lettings -
3b - Miscellaneous -
4 Investments 4 283 217 501 1,561
5 Other 18,734 6,925 25,659 14,964
6 Total 340,575 217 6,925 - 347,717 325,305
Expenditure on:
7 Stipends, salaries, NIC & Pension costs 6 208,861 208,861 198,334
8 District Assessment 55,032 55,032 53,920
9 Methodist Church Fund - -
10 Telephone & travel 4,894 4,894 13,871
11 Insurance, utilities, etc 12,423 12,423 15,262
12 Maintenance on manses 19,627 19,627 18,497
13 Expenditure on other Circuit property 5,153 5,153 -
14 Depreciation - -
15 Outreach and Mission 5,000 5,000 7,269
16 Other Expenditure 8,828 132 8,960 15,634
17 Grants and Donations 400 400 760
18 Contributions to District Advance Fund 1,652 1,652 1,588
19 Total 320,218 1,784 - - 322,002 325,135
20 Net income/(expenditure) 20,356 - 1,567 6,925 - 25,714 170
21 Transfers between funds
20,356 - 1,567 6,925 - 25,714 170
Funds received from Stratford and Evesham
Circuit 94,339
Other recognised gains / (losses):
22 Gains/(Losses) on revaluation of fixed assets - 631,000
23 Gains/(Losses) on investment assets - -
Actuarial gains /(losses) on defined benefit
24 pension schemes - -
25 Net movement in funds 20,356 - 1,567 6,925 - 25,714 725,509
Reconciliation of funds:
26 Total funds brought forward 1,982,680 66,073 50,000 2,098,753 1,373,244
27 Total funds carried forward 2,003,036 64,506 56,925 - 2,124,467 2,098,753
Notes to the accounts Unrestricted funds CMTF (Unrestricted) Restricted Funds Endowment Funds
**----- End of picture text -----**
**----- Start of picture text -----**
South Worcestershire Methodist Circuit
Balance Sheet as at 31 August 2021
Unrestricted Circuit Model Restricted Endowment Totals this Totals last
Trust Fund Funds year year
(Unrestricted)
£ £ £ £ £ £
Tangible Fixed Assets
Notes
Land & Buildings 1,913,000 1,913,000 1,913,000
Equipment
Investment properties
Investments 105 105 105
Total fixed assets 1,913,105 1,913,105 1,913,105
Current Assets
Debtors and Prepayments 8,133 8,133 5,023
Other
Trustees for Methodist Church
Purposes deposits 64,506 64,506 66,073
Central Finance Board Deposits 123,534 56,925 180,460 155,187
Cash at Bank and in hand 20,462 20,462 13,587
Total current assets 152,129 64,506 56,925 273,561 239,870
Creditors and Accruals (due in
under 1 yr) 62,198 62,198 54,222
Net current assets (liabilities) 89,931 64,506 56,925 211,363 185,648
Total assets less current
liabilities 2,003,036 64,506 56,925 2,124,468 2,098,753
Loans and creditors due after 1
year
Provisions for liabilities and
charges
Net assets 2,003,036 64,506 56,925 2,124,468 2,098,753
Funds of the Circuit
Unrestricted funds 2,003,036 2,003,036 1,982,680
Circuit Model Trust Fund
(Unrestricted) 64,506 64,506 66,073
Restricted funds 56,925 56,925 50,000
Endowment funds - -
Total Funds 2,003,036 64,506 56,925 2,124,468 2,098,753
**----- End of picture text -----**
**South Worcestershire Methodist Circuit**
## **Notes to the Accounts**
## **1 Basis of accounting**
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 for Smaller Entities applicable in the UK (effective from 1 January 2015) – the Charities SORP (FRSSE) – 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.”
## **2 Funds**
The funds held constitute: General Funds held for any purpose of the Circuit which are Unrestricted. The Circuit Model Trust Fund has wide purposes defined in Standing Orders and is categorised as unrestricted. Restricted funds which are held for a narrower purpose . There are also the following Endowment funds as listed. Details of each material fund are disclosed in the final note to these accounts. Any funds may be represented by more than just cash.
## **3 Accounting policies**
## **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.
## **Income Recognition**
Income is included in the Statement of Financial Activities (SOFA) when the Circuit becomes entitled to the resources, and the trustees are reasonably certain they will receive the resources; and the monetary value can be measured with sufficient reliability.
## **Resources Expended**
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.
## **Grants**
Grants made by the Circuit from its own funds are recognised in full at the time of agreement or when the Circuit accepts that there is a legal or operational obligation to make the payment. When the 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, the provision being released in future years as instalments are paid in accordance with the originally agreed terms.
## **VAT**
Since the Circuit is not VAT registered, all input VAT is charged with the expenses to which it refers.
## **Tangible fixed assets for use by the Circuit**
These are capitalised if they can be used for more than one year, and individually cost at least £1,000.
The freehold property is shown in the accounts at 2020 deemed values. No depreciation is provided on the buildings because the trustees consider the current residual fair value of the manse buildings (on the assumption that they had reached the end of their useful economic life by the year-end) to be not less than their current value. Any depreciation would not be material. The properties have been reviewed for impairment.
## **Investment Properties**
Investment properties - no property is currently deemed to not be held for the long term purposes of the charity.
## **Investments**
Investments are valued in the balance sheet at market value at the year end. Investment income is included in the accounts when receivable and any gains or losses on revaluation at the year end are shown in the SOFA.
## **Debtors and Prepayments**
Debtors relate to the payment of the September stipend in August.
## **Creditors**
Creditors include sundry expenses incurred but not yet paid.
## **Impact of Accounting changes**
A statement is required if there has been any restatement required to previous reported information as a consequence of the new SORP. There is no such restatement.
## **South Worcestershire Methodist Circuit**
**----- Start of picture text -----**
Circuit Model 2021 2020
Unrestricted Restricted
4. Investment income Trust Fund Total Total
£000 £000 £000 £000
Central Finance Board -
Rental income -
Other 105 105 104
Total 105 - - 105 104
5. Payment to Trustees This year Last year
Payments made to trustees £ -
Number of trustees who
were paid expenses
Total amount paid £
6. Paid employees
Staff Costs paid during the
This year Last year
year were:
Gross wages, salaries and £
benefits in kind 162,351 152,395
Employer’s National £
Insurance costs 12,180 12,513
Pension costs £ 34,330 33,426
Total staff costs £ 208,861 198,334
Average number of staff
employeed during the year
were: 8 8
**----- End of picture text -----**
**----- Start of picture text -----**
South Worcestershire Methodist Circuit
8. Payment to Trustees
This year Last year
Payments made to trustees for additional services provided to the Circuit by agreement with
the Circuit Meeting £
Number of trustees who were paid expenses 5 4
Nature of the expenses
Expense payments primarily relate to reimbursement for travel and computing costs
Total amount paid £
4,031 8,782
9. Fees for examination or audit of the accounts
Independent examiner’s or auditors' fees for reporting on the accounts
£
Other fees (eg: advice, accountancy services) paid to the independent examiner or auditor £
**----- End of picture text -----**
## **8. Payment to Trustees**
## **9. Fees for examination or audit of the accounts**
south Worcestershlre Methodlst Clr¢ult
DECLARATIONS
Treasurer
l confirm Ihat these accrual based accounts for the year ended 31 August 2021 have been prepared
from the records of Ihe Circuit and that they include all funds under the control of the Circuit Meeting.
Date
18-Fet22
Signature of Trea5vrgr
Name of Treasurer
Sandié Smlth
Address
43 CrofteFs Green. Dr01fvch Spa, Worcestershire, WR9 9HX
Presentatlon to the Clrcult Meetlng for approval.
I wnfiTtn that the annual report and accounts for the year ended 31 Aug 2021 were, or
will be" presènted to the Circuit Meeting al ils meeting on
08-Mar-22
and were approved.
Signaturè tsf the Chair of
the meeting
Name of the Chair ofthe
meeting
Date
Rev Nlgel Coke-woods
Independent Examiner's Report to the Trustees of the
South West Worcestershire Methodist
Circuit
This Report is on the Circuit Accounts for the year ended 31°, August
2021
Respectrvo responsibilitles of Trustees and Examlner
The Circuit'5 trustees are responsible for ensuring that the annual r8port and accounts for the year to
31 August 2021 present 8 true and fair view of the Circuit's in¢ome and expenditure foi the year and of
its assets and liabilities at the balallce sheol dale. The trustees consider that an audil is not necessary
ft)r this year under Section 144 of the Charities Act 2011 {Ihe Charities Act) and that an independent
examination is needed.
It is my responsibility to..
examine the accoun15 under section 145 of the Charitie5 Act.,
to follow the procedures laid down in the general Directions given by Ihe Charity
Commission under Se¢tion 14515llbl of the Charities act,. and
lo slate whether particular matters have come to my attention.
' Please delele or circle as appropriate
South Wor¢e5ter5hlre Methodlst arcult
Ba81s of IndepBnd•nt Examlner's Report
My examination was camed out in a¢eordance 1h the generBI directions given by the Charity commS1on.
An exarnin81ion includes a review of the accounling records kept by the chanly and a comparison of the
accounts presented with those records. 11 also Includes consideration of any unusual items. in nature or s¢ak,
or di$c1ts5ures In the accounts, seeking explanaiians fvom the Trustees CAJntsrning such matters. The
procedures undertaken do nol provirse all the evidence that would be required In an audit and, Consequently no
opinion is given as lo whether the 8ccounls present a truè and fair view. My report 15 lirnited to those matters
set out in the slalernent below.
Independgnt Exarnlner's Statoment
In connection wlh my &xamin8tion, no matter has Come to my attenlion {oiher than as disdo$ed
b&low'l
which gives me re88onable cause to believe that in ariy material respect the requirements..
to keep acctsunling records in accordanc8 with Section 130 of the Charities Act.
to prepare accounts which accord wth the accounting records and comply with the
accounb.ng requirements ofth8 Charities Act
have not been met. or
{2)
lo which, in my opinion, attention should be drawn in order to enable a proper
understanding of the accoLJnls to be reached.
(31
I ka¥e th8ve not" obtained independent verification of all investments with the Trustees fr)r
Methodist Church Purposes or held in other trusts, bank balances and fund5 at the Central
Finance Board of the Methodist Church which ale individually in excess of £10,000 (ten thousand
pounds) at the balance sheet date.
Name of independent
examiner
Eve Jennings
Signature of
independent examiner
Relevant Profession81 qualrfication of inde
endent examiner
hccA
Name of firm (where appro
riale
Address
24 Dalziel Drive
Whittington.
Worcester
WR5 2QY
Date
i Lk /G611(
Please delete or cile as apprnpate