Circuit Reserves Policy

Jan 2017

1.   Mission Policy

The Circuit Mission Policy is set out in out in a separate document and is published on the Circuit web site www.hinckleymethodistcircuit.org.uk

Essentially, it provides for:-

1. The ministerial oversight and pastoral care of the 11 local churches in the circuit.
2. The support of a ministry team of 3 Presbyter Ministers with the support of 3 local Pastors, a part-time Circuit Administrator, a full-time Youth Worker with a part-time Assistant. The circuit calls on the support of a minister ‘authorised to serve’ to lead services once or twice a quarter. Following a period of ill health our Superintendent Minister has left the circuit, a new Minister will join the circuit in June 17. As such the circuit will operating with 2 Ministers for a period of the 2016/17 financial year.
3. The maintenance of 3 circuit manses

2.   Financial Plans

• The circuit assessment is reviewed annually and covers the costs 1a to 1c.
• A 5 year funding plan for The Bridge came to an end in Aug 14. However, due to lower than expected employment costs and periods of staff shortages a residual fund accumulated of £25,923. These funds are now used to contribute to the costs of the Circuit Youth Worker with £9,366 remaining as of 31 Aug 16. These funds are separated in the accounts and shown as restricted funds.
• The Circuit Youth Worker is part funded by a district grant of £8,000 ending in Aug 17 and the Circuit Restricted funds. The remaining cost of Youth Work which includes specific

mission activities, e.g Mission bus operated by Reality Youth Project are funded by contributions from the Circuit funds and the Circuit Model Trust Fund.

• We make provision for our property maintenance programme by an annual budget of £8000. However the actual cost are charged and recorded each year on the circuit balance sheet
• The Circuit general funds at year end Aug 2016 were as follows
  • Unrestricted general fund £147,559  (excludes Circuit Model Trust Fund)
  • Restricted fund (Bridge) £9,366
• Under standing orders, the Circuit must meet its financial obligations in relation to the support of its ministers and the up keep of manses. The total cost for last year was £154,496 including the salaries and related costs of the lay workers. The total expenditure for the circuit including payments to the District and Connexion, grants and other general expenditure was £227,603
• The Circuit Model Trust Fund at year end Aug 2016 was £104,059. This fund derives from the sale of chapels and manses and is restricted by the Conference of the Methodist church. This restriction is an internal regulation though the funds can be used for a variety of purposes but with an emphasis on mission rather than maintenance. The fund total includes an outstanding loan of £3358 to be repaid over 3 years. Made to Earl Shilton Church in relation to updating heating in the Church Hall.

3.   Reserves Policy

The charities commission have agreed that it is appropriate for the trustees to set a policy for the management of this fund and that policy is set out below:

• Our policy is to hold at least 6 months expenditure relating to the Minister, Manses and Lay worker direct costs. Based on last year’s accounts this equals £154,496 /2 = £77,248. Funds held in the general account satisfy this criterion.
• Restricted funds, The Bridge fund, held for the support of mission will be used to contribute to the costs of the Circuit Youth Work.
• Money held at year end 31^st Aug 16 in the Circuit Model Trust Fund has been earmarked by the trustees for the following purposes:-
  • £30,000 for property purposes, grant to Burbage Church. Planning approved, however, District approval is dependent on identifying 80% of the required funding. Planning for the building has been revised to reduce the overall costs. The Church now believes they are close to securing the required funds to proceed with the project.
  • £21,000 to cover the Circuit contribution to the Youth Worker direct costs until year end 2017.
  • The remaining £49,701 (as of 31^st Aug 16 and excluding repayment of loans) is held in reserve pending the decision of the Circuit Meeting.

C Bacon                                                                                 Rev Wes Hampton

Circuit Treasurer                                                                Acting Circuit Superintendent