¢harlty Reglstratlon No. 1132237 THE METHODIST CHURCH CHESTER AND STOKE ON TRENT DISTRICT ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 c? xeinadin auditing
THE METHODIST CHURCH CHESTER AND STOKE ON TRENT DISTRICT LEGAL AND ADMINISTRATIVE INFORMATION Trustees Rev. P A BilL%borrow I C White Mrs V Ma>trs G Parkes Mrs S Graham D J Pickles Rev P Hancock Rev T P Ssmtns Rev H R Kirk Rev R Hilton Rev K Stephens Revy Pearson IAppointed I September 20211 IAppointed I Septernber 20211 IAppointed I Septernber 20211 Charlty number 1132237 Prlnelpal address Methodist District Office Bishop's Wood Nantwiclj Cheshire CW5 7QD Audltor Xeinadin Audit MIted 2 Hilliarils Court Chester Business Park Chester Cheshire CH49QP Bankers Uffjs Bank plc 8 Foregate Street Chester Cheshire CHI IXP Methodist Chapel Aid Ltd l TeOrd Terrace Albemiarle Road York Y024 IDQ The Trustees for Methodist Church Purposes Central Buildings Oldham Street Manehester Ml IJQ Cenlral Finance Boaril of the Methodist Church 9 Bonhill Street London EC2A 4PE
THE METHODIST CHURCH CHESTER AND STOKE ON TRENT DISTRICT CONTENTS Page Trustees, report Statement of tru5tees' re5ponsibilrties Independent auditorfs report Statement of finaneial activities Balance sheet Statement of cash flows li Notes to the financial statements 12-25
THE MEfHODIST CHURCH CHESTER AND STOKE ON TRENT DISTRICT TRUSTEES, REPORT FOR THE YEAR ENDED 31 AUGUST 2022 The trustees present their rerM)rt and financial ststements for the year ended 31 August 2022. The financial statements have been prepared in accordance w¢th the accounting policies set out in note I to the financial statements and comply wtth the charttls governing document. the Charities Act 2011 and -Accounting and Reporting by Charities.. Ststement of Recommended Practice applicable to charthes preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021" las amended for accounting periods ¢omrnencing from l January 20161. Oblectlves and activiti85 During the year Ihe District has continued to reeogntse its declare(I priortbe5 Of- Promotingthe Christian worship of God ty making worship attractive. relevant and incluswe. Making mission a real engagement of kingdom Ydlue5 and living faith with society. Maintaining our status as a Fairtrade District working to overcome Critical ty)verty and prornoting environmental care. Encouraging a culture of continuous leaming. promoting growth in social and personal holiness. Fostering effective pastoral systems avhd upholding gocKI practice in Safeguarding. Fleviewing District systems an<J structure5 to liberate people for involvement in Church and community- Helping chufches and circuits to think collaboratively. avoiding institutional waste. Working c105ety with other denominations. Developing good relationships with other worlrt farths wtthout compromigingthe Christian gospel. Be prayerful in all things hoklingto Chrislkqn hope in a secular climate. io. The tiustee5 have paid due regard to guidance issued tty the Charity Commission in deciding what acth"vities the charity should undertake. Regularty reviewed the work of Safeguarding practices in the Distri¢t under the gusdance of the District Safeguarding Olficer. Imaginatively used resources fTom wtthin the Disin¢t to provide leadership and support when there are gaps in the stationing of ministers. Through the watchful eye of Ihe Dislrict Treasurer. maintaineil a close control on the District's finances and developed a reserves policy. Continued to scrutinise all property schemes nee(ling approval on behalf of the Connexion ensuringthat money is invested in areas of potenlial grovrth and the responsible maintenance of Methodist property. Encouraged the review of meaningful mission polieies for ¢hurches and circuits. Reviewed church and circuit finances to identify where there are shortfalts or excesses in amounts held in reserve. Returns are examine(J and commented on as received. Ctsntinued to live out Ihe Distsict Di%iple5hip and Mission PoliLy Sharing of resources ol people ènd skilL8 acTOSS Circuits to enhance mission. Encouraged with resour and finance the mission worfK undertaken by the MethlIst Book Centre in Hanley. Ensured that all staff employed within the Districl are paid the Living Wage. Participated in developing new fortns of church and pioneering ministries includingthe Immerse Community. Scrutinised the pastoral care for memi)ers of churches who have completed their tnission and needed to c105e. Received grant applications from churches, circuits etc. and committed to the making of grants where the criteria were met and prospeets en¢ouraging. The Distrtct Grants Officer monitore(I the progress of the various ministry and outreach projects which had been financially supported. Received updates from the District representstive to the Methodist Council. Gave permission to cease worship following completion ol witness. Encouraged candidates for the presbyteral and diaconal ministry. Provided education, training and reflection for those already in ministry appointments in the Distriet on diffennE topics and including a residential retreat Engaged in the Methodist Heritage work within the District by supporting through people and finance the research and outreach work undertaken by the Englesea Brook Chapel and Museum. Developed new proposals for the increase in the number of vital congregations including the planting of new Churches. Encouraged by the Chair of Ihe District to wve direclion to Leadership developmenL recognise cultural Change. enable discipleship. the shortage of presbyters. the morale and well-being of Ministers and lay preachers and also consider the preSS lor churches coming to the en¢J ot their mission.
THE METHODIST CHURCH CHESTER AND STOKE ON TRENT DISTRICT TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 Provided education. training and reflection for those already in ministry appointments in the District on differingtopics and including a residential retreat. Engaged in the Methodist Heritage woik within the District by supporting through people and finance the research and outreach work undertaken ty the Englesea Bri)ok Chapel and Museum. Developed new proposals for the increase in the number of yitsl congregations including the planting of new churches. Encouraged by the Chair of the Dbstrict to gve direetson to Leadership development. recognise cultural change, enable discipleship. the shortage of presbyters. the morale and well-being of Ministers and lay preachers and also consiLler ihe process for churches comingto the end of their mission. The results for the year are shown in the Staternent of Financial Activtiies. Ineome for the year was £1.149.285- down from £1,586,408 in 2021. Expenditure for the year increased from £988,973 to £1,101,288 resulting in net income for ihe year of £16.755. During the year an unrecognised loss on rewdluation of investments of £31.242 occurred. This leave5 total funds at 31 August 2022 of £1.803.356 of which £1.356.471 are restrtcted. Reserves r¥)li¢y The District maintains appropriate reseryes in order to have fund5 wailable for= a. Any significant property costs that are likety lo arise- b. The payment of grants authorised for Methodist an¢J associated organisations- c. The provision ol adeouate working capital. The consolidated Distn¢t accounts include a variety ol activities. which each has differing reserve requirements, summarised as follows.. The Methodist Book Cent Cover lor a reduction In trading conditions- Funds lor refurbishment of premises lincreasing annualtyl. Engiesea Brook Chapel and Museum - Six months of revenue expenditure- - Premises maintenance reserve- Future projects reserve.. Exceptional expenditure and other requirements. District Advance Fund - Maintenance of an available balance equiwdlent to all u)mmitted grants. representingat least 90% of the reserve,. - Emergency stand by. District General Account - Three months revenue expenditure Ifor the payment of salaries. stipends. expenses. Distri¢t manse and office ¢ostsl. District Education and Youth - As most expenditure takes the form of small orants for youth and children's work- six months of annual funding to cover grants early in the Connexional year. Risk rnanagement The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance againstfraud and error. Plans for the future Further work will be done to develop and enactthe District Mission Plan. Attention will be given to a scenario where the deman¢Js upon churches (including leyjslative dernandsl (x)ntinue to increase against a backdrop of the increasing age and diminishing number of lay volunteers and the number of ordained ministers.
THE MEfHODIST CHURCH CHESTER AND STOKE ON TRENT DISTRICT TRUSTEES, REPORT {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 structure, governance and rnanagement Governingdocument The governing body of the Chester and Stoke on Trent District is the Annual Conference of the Methodist Church. The Deed of Union 1932 and the Meiho¢Yist Church Act 1976 gNe the authority under which the Methodist Church acts. The Constitutional Pra¢ti¢e and Discipline of the Methodist Church governs the activities of the District. The Methodist Church is no longer excempted from the need to re&ster as a charity and on 21 October 2009 the District reostered as È separate charity under the Charitses Act 2006 and was allocated the registratson number 1132237. The trustees who served duringthe year and up to the date of signature of the financial ststements were: Rev. P A Billsborrow Mrs H Staniland I C White Rev. L Catlow Mrs V Mayers G Parkes Mrs S Graham D J Pickles Rev P Hanc(Kk Rev T P Simms Rev H R Kirk 8 R Barber S Best Rev R Hilton Rev K Stephens Rev Y Pearson (Resigned 31 August 20221 (Resigned 31 August 20221 (Resigned 31 August 20221 (Resigned l November 20211 (Appointed I September 20211 (Appointed I Septetnber 20211 (Appointed I September 20211 Appointment of tru5tee5 The appointment of trustees is made at Synod by a formal vote ofthe Members of Synod. Audttor In accordance With the eompanls articles. a resolution proposing thatxeinadin Audti Limsted be reappointed as auditor of the company will be put at a Gerheral Meetin& Dl$c105ur¢ of Informatlon to audltor Each of the trustees has confirme¢ that there is no infomation of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have tsken appropriate steps to identify such relevant information an¢J to establish that the auditor is aware of such information. The trustees, report was approved by the Board of Truslees. J C Whlte Synod Secretary Dated.. 23 July 2024
THE MEfHODIST CHURCH CHESTER AND STOKE ON TRENT DISTRICT STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2022 The trustees are reswnsible for preparing the Tru5tees' ReKKJrt and the financial statements tn accordance wfth applicable law and United Kingdom A¢¢ounting Standar¢Js (Llnited Kingdom Generally Accepted Accounting Practicel. The law applicable to charities in England and Wales. the Charilies Acr 2011. the Charity (Accounts and Reports) Regulations 2008 and the provisions of the govering document requires the Irustees tts prepare financial statements for each finèncial year which @ve a true and fair view of the state of affai[5 of the charity and of the incoming resources and application of resources, including the income and expendtture. of the Charity for thal year. In preparing these financial ststements. the trustees are required to.. - select suitable accounting policies and then appty them consislenttr. - observe the methods and principles in the Charities SORP- - make judgements and estimates that are reasonable and prudenL - staTr whether applicable èceounting stsnoards have been followed. subje¢t to any material departures disclosed and explained in the financial statements.. and prepare the financial statements on the going concem basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any titne the financial position of the charrty and enable them to ensure that the financial ststements ¢otnply wrth the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the piovision5 01 the govering documenL They are also responsible for safeguarding rhe assets of the ¢hartty and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
THE MEfHODIST CHURCH CHESTER AND STOKE ON TRENT DISTRICT INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE MEfHODIST CHURCH Oplnlon We have audited the financial statements of The Methodisi Church (the 'charity'l for the year ended 31 August 2022 which comprise the statement of financial activitTes. the balance sheet. the ststement of cash flows and notes to the financial 5taternents, Including signrficant accounting policie5. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom A(xounting Standards, inclu¢Jing Financial Reporting Standard 102 The Financial Reporting standard applicable in Ihe UK anrj Republlc of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements= give a trve and fair view of the state of the ¢harity's affairs as at 31 August 2022 and of its incoming resources and application of resources, for the year then ended: have been properly prepared in accoroance wrth United Kingdom GeneraltyAc¢epted Accounting Practice., and have been prepared in accordanee with the requirements of the Charilies Act 2011. Basls for oplnlon We wnducted our audit in accordanee with International Standarijs on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the AUdit0S responsibilities ftrr the audit of the financial statements section of our reporL We are tndependent of rhe cttarrty in accordanoe wtth the ethical requirements that are relevant to our audit of the financial statemeat5 in Ihe UK. including the FRC'S Ethical Standard, and we have fulfilled our other ethieal responsibilitie5 in accordan with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to proviije a basis for our opinion. Concluslons relallngto going concern In auditing the financial statements. we have conclude(S that the truslees, Ltse of the going Concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed. we have not identified any material uncertainties reLating to events or conditions that. individualty or collectivety. may cast significant doubt on the charity'5 ability to continue as a going concern for a period of at least twelve months from when the financial stalements are authorised for issue. Our responsibilities and the respon5ibilttyes of the trvstees with respect to going con¢em are describecj in the relevant seetions of this reporL other Inforrnatlon The other information comprise5 the information included in the annual report other than the financial statements and our au¢Jitor's report thereon. The trustees are responsible for the other infortnation Contained wrthin the annual report. Qur opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other informalion and. in doing so, consider whether the other Information is materially inconsistent th the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materialty rnisstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether thi5 &ves rise to a material mi$5tateFnent in the financial ststements them5efves. Ir. based on the work we have rformed. we conclude that there is a material misstatement of this other information. we are qUired to report that facL We have nothing to report in this regard. Matters on whlch wg are requlred to report by exceptlon We have nothing to report in respect of the following matters in iektion to which the Charities (Accounts and Rewrtsl Regulations 2008 requ1re us to report tr) you rf, in our opinion.. the information "Ven in the financial stsiements is inconsistent in any material respect with the trustees. report- or sufficient accounting records have not been kept- or the financial staternents are not in agreemefit with the accounting records.. or we have not received all the information and explanations we require for our audit.
THE MEfHODIST CHURCH CHESTER AND STOKE ON TRENT DISTRICT INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE METHODIST CHURCH Re$pon$lbllltl85 of trustees As explained more fully in the statement ol trLtstees' responsibilttie& the truslee5 are responsible for the preparation of the financial ststements and for being satisfied that they give a true and fair view. and for such internal control as the trustees determine is necessary to enable the preparation of flnancial statements that are free frotn material mitateMent whether due to fraud or error. In preparing the financial statements. the trustees are responsible for assessing the charity's ability to continue as a going concem, d4sclosin& as applicable. matters related to going concern and usingthe going concern basis of accounting unless the trustees either intend to ase operation5, or have no realistic alternative but to do so. Audltovs re$pon$lbllltles for the audlt of the flnan¢lal statements We have been appointed as audrtor under section 144 of the Charr(ies Act 2011 and report in accordance wtih the Act and relevant regulations made or having effect thereunder. Our oblectives are to obtain reasonable assurance about whether the financial slatement5 as a whole are free from material misststement. whether due to fraud 01 error. and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance bLrt is not a guarantee that an audit conducted in a¢cordance with ISAS IUKI will always detect a material misslatement when it exBts. Misststements ean arise from fraud or error an(J are considered material if, individually or the aggregate. they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extentto whieh our procedures are capable of detecting irregularities, including fraud, is dètailed below. Enquiries of management and those charged with govemance held in order to identify any laws and regulations that could be expected lo have a rnaterrdl impact on Ihe financial strtements. Through0 the audit. the team were updated with the outcomes of these enquiries including consideration as to where and how fraud may occur in the company. The audit proce¢Jures undertaken to address any potential risk in relation tts irregularities (which include fraud and non- compliance with laws and regulations) included= enquiries of management an those charged with governance on how the cotnpany complies with relevant laws. regulations and any cases of actual or potential litigation or elaims.. examination of appropriate legal correspondence,. testing of journal entries for Èppropriateness.. and analytical procedures on account balance5 to identify variances against expectation which may show indications of fraud. No inst8nces of material nonoMplI8nce were identilied. although the prospect of detecting irregularities. in¢luding fraud, is inherently difficult. This is due to-. difficulty in detecting Irregularitie5- limits itnp05ed by the effectiveness ol the entity's controls- and the nature. timing and extenl of the audti proceduie5 performed. Irregularities as a result of fraud are inherently more difficult to detect than those that resuMng from error. Despite the audit being planned and performed in accordance with ISAS IUKI, there is an unavoidable risk that material misststements may not be detected. A further desoription of our resptsnsibilities is available on the Financial Reporting Council's website at.. https.'// www.frc.or&uVauditorsresponsibilities. This description forms part of our auditt>rfs rèrK)rL other matters Your attention is drawn to the tsct that the chartty has prepared financial statements in accordan with 'Accounting and Reporting by Charitie5'. Ststement of ReGommended Practice applicable to charib'es preparing their aceounts in accordanee with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021. las amendedl in preference to the Accounting and Reporting by Charities.. Staletnent ol Recommended Practice issued on l April 2005 whlch is referreé to in the extant regulations but has now been wrthdrawn. This has been done in order for the financial statsments to kwovide a true and tsir view in accordance with current Generally Accepted Accounting Practice. Use of our report This report is tnade solely to the charity's trustees. as a body. in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are reouired to state to them in an auditorfs report and for ng Other purpose. To the fullest extent permitted by law, we do not accepi or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report. or for the opinions we have formed.
THE MEfHODIST CHURCH CHESTER AND STOKE ON TRENT DISTRICT INDEPENDENT AUDITOR'S REPORT (coKfiNUED) TO THE TRUSTEES OF THE MEfHODIST CHURCH Alastalr Jeffcott Isenlor Statutory Audltorl for and on behalf of Xelnadln Audll Llrnlt¢d 23 July 2024 Charteied Ae¢ountants Statutory Audltoi 2 Hilliards Court Chester 8L¢5iness Park Chester Cheshire CH4 9QP Xeinadin Audit Limited is eligble for appointment as auditor of the chaiity by virtue of its eliobility for appointment as uditor of 8 company under section 1212 of the Companies A¢t 2(X)6.
THE MEfHODIST CHURCH CHESTER AND STOKE ON TRENT DISTRICT STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2022 Current flnanclal year Unrestrf¢ted Unrestrl¢ted funds funds general designated 2022 2022 Re$til¢ted tunds Total 2022 2022 Income and endowments fwom- Donations and legacies Investments Other income 728.655 385 19.918 359,870 40.457 1.088,525 40.842 19,918 Total Income 748.958 400.327 1,149,285 Expendlture on: RaisiFig funds 2,369 2,369 Charitable activities 844,916 254,003 1.098,919 Total resource5 expended 844.916 256.372 1.101,288 Net gains/llossesl on investments 13 131.2421 131.2421 Net loutgolngVln¢omlng resources befNe transfers 195.9581 112.713 16,755 Gross transfers between funds 42.0(X) 20.¢Y)O 162,0001 Nèt movement in funds 153.9581 20.000 50.713 16.755 Fund balanees at I September 2021 412.064 68.779 1.305,758 1,786.601 Fund balances at 31 August 2022 358.106 88.779 L356,471 1,803.356 The statement of finarn¢ial activities includes all gains and losses recognised in the year. All income and expenditure is derive from continuingactivities.
THE METHODIST CHURCH CHESTER AND STOKE ON TRENT DISTRICT STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST2022 Prlor flnancSal year Unrestrocted Unre5trlcted funds funds general dIgnated 2021 2021 Restrlcted funds Totsl 2021 2021 Notes ome and endowments from. Donations and legacies Investments Other Income 819.152 283 51.245 684,515 25.280 5.933 1.503.667 25,563 57,178 Totsl Incorne 870.680 715.728 1,586,408 Ex endlture on: Raising funds 577 577 ChaTitable activities 781.796 206.600 988,396 Total resou¢$ expended 781.796 207,177 988.973 Net gains/llossesl on investsllents 52,070 52,070 Net loutgolngvlncornlng resources before transfers 560,621 649,505 Gross transfers between funds 120.0001 20,000 Net mtsvÈm•nt In funds 20,000 560,621 649,505 Fund balances at I September 2021 343.180 48.779 745,137 1,137,096 Fund balances at 31 August 2022 412,064 68.779 1,305,758 1.786.601 The statement of financial activities includes all gains and losses rewtsed in Ihe year. All income and expenditure is derive from continuing activtties.
THE METHODIST CHURCH CHESTER AND STOKE ON TRENT DISTRICT BALANCE SHEEr AS AT31 AUGUST2022 2022 2021 a5 restated Notes FIx8d assets Tangible assets Investments 517,912 439.066 518,348 470.309 956,978 988.657 Current assets Stocks Debtors Cash at bank and in hand 17 18 54,050 6,356 795.610 64.819 4.746 734,435 856.016 804,000 CrgdltQfs: amourrts falllng due wlthln one yaar 19 9.638 6.056 Net current 8ssets 846,378 797,944 Tolal agsets less current Ilabllltles 1,803.356 1,786,601 The funds of the ¢harSty Restricted income funds Unrestricted funds- general Unrestricted funds- designated 1.356.471 358.106 88,779 1.305.758 412,084 68.779 22 1,803,356 1,786,601 The financial 5tstements were approve(I by the trustees on 23 July 2024 I C White Trustee 10-
THE METHODIST CHURCH CHESTER AND STOKE ON TRENT DISTRICT STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2022 2022 2021 Notes Cash flows from operatlng a¢tlvStles Cash generated fiorn operation5 29 20.447 570,291 Investlng a¢tlvltles Purchase of tangible fixed assets Purchase of investments Proceeds from disposal of investments Investment in¢ome received (1141 1475,1001 56.861 25,563 40.842 Net cash generated from/{used inl investing actlvltles 40.728 1392.6761 Net cash used In flnanclng actlvltles Net Increase In ¢a8h and cash equlvalents 6L175 177,615 Cash and cash eouivalents at beonning of year 734,435 556,820 Cash and cash equfvalents at end of yr 795,610 734,435 11
THE MEfHODIST CHURCH CHESTER AND STOKE ON TRENT DISTRICT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 Accountlng poll¢les CharSty Informatlon The Methodist Chuich is a charsty 0stered in England and Wales. 1.1 Accountlng conventlon The financial statements have been prepare(l in accordan with the Charities Act 2011 and -Accounting and Reporting by Charitie5'. Statement of Recommended Practice applicable to charities preparing their accounts in aceordance wbth the Financial Reporting Standard applicable in the UK and Republic ol Ireland IFRS 1021" las amended for accounting periods comrnencing frotn l January 20161. The charity is a Public Benefit Entrty as defined by FRS 102. The financial stsiements have ¢Jeparted from the Charitie5 (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for chartbes applying FRS 102 rather than the version of the Statement of Recommendeo Praclice which is referred to rn the Regulations but which has Sin been withdrawn. The financial statsments are prepared in sterling whtch is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The financial ststements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. 1.2 Golng ¢Onrn At the time of approving the financial statements. the trustee5 have a reasonable expectation that the charity has adeouate resources to continue in operational ex5tente for the foreseeat*le future. Thu5 the trustees Continue to adopt the going coneem basis of accouniing in preparing the financial ststements. la Charltable funds Unrestricted funds are a¥8ilable for use at the discretion of the trustees in further8nce of their charitable objectives. Restricled funds ère subjeci to specific conijrtions by donors or grantors as tr) how they may be used. The purposes and uses of the restricted funds are set oul Èn the notes tg the ftnhncial statements. 1.4 Income Income is recognised when the charity ss legalty entitled to it after any performance cond05 have been met, the amounts can be measured reliabty, and it is probable that income will be received. Cash donaiions are recognTsed on receipt Other donations are Tecognised once the charity has been notified of the donation. unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant Is recognised at the time of the donation. Legacies are recognised on receipt or otherwise rf the chaiity has been notified of an impending distribution, the atnount is known, and receipt is expected. If the amount is nol known. Ihe lega¢y Is treated as a contingent asseL l.S Expendtture LiablitieS are Tecognised as expenditure as soon as there is a legal or constructive obligation committingthe charity to that expenditure. it is probable that a transfer ol econornic benefits will be required in settlernent and the amount of the obligation can be measured reliabty. Expenditure is accountsd for on an accruals ba51s and has been classified under headings that aggregate all cost felated to the category. Where costs cannot be directly attribute to particular headings they have been allocated to activities on a basis consistent with the use of resource5. Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure. 12-
THE MEfHODIST CHURCH CHESTER AND STOKE ON TRENT DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST2022 oyntlng polS¢les Icontlnuedl L6 Tangjble Ilxed assets Tangible fixed assets are inr(ialty measured at cost and subsequently measured at cost or valuation. net of depreciation and any impairment Ic6se Deprecialon is recognised so 8s to write off the cost or valuation of assets less their residual values over their useful lives on the following bases.. Freehold property Leasehold improvements Fixtures and fittings Computer equipment in aCrdance Mth the property 33.33% on cost 15% on reducing balance 15% on reducing balance The gain or loss arising on the dsposal of an asset is determined as the difference between the sale proceeds and Ihe carrying value of the asset, and is recognised in the statement of financial activities. 1.7 Fixed 855et Investments Fixed asset investments are intbalty measured 81 transaction price exeluding transaction costs. and are subsequently measured at fair value at ea¢h repOng date. Changes in tsir value are recoEnised In net income/ lexpenditurel ft>r the year. Transaction costs are e¥pensed as incurred. 1.8 Impalrment of Ilxed assets At each retx)rting end date. the charity reviews the carrying arnounts of its tsn&ble assets to determine whether there is any indication thal those assets have suffered an impairmenl loss. If any such indication exists. the recoverable amount of the asset Is estimated in orderlo determine the extsnt of the impairment loss lif any). 1.9 Stocks Stocks are stated at the lower of cost and estimated selling price less eosts to ¢omplete and sell. C(Ist comprises direct matenals and. where applicable. direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and con¢Jition. Items held for distribution at no or nominal consideration are measured the lowei of replament cost and cost. Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketin& selling and distribution. 1.10 Cash and cash equfvalents Cash and cash equivalents include cash in hand. deposits held at call with bank& other short-tem) Ilquid investments with original maturilies of three months or less. and bank (werdrafts. Bank overdrafts are shown within borrowings in current liabiltiies. 1.11 Flnan¢lal Instruments The charity h8s elected to appty the provisions of Section 11 'Basic Financial Instruments, and Section 12 '0ther Fin2neial Instruments &sues' of FRS 102 10 all of lis financial instruments. Financial instruments are recognised in the charWs baL4nce sheet when the charity becomes party to the contractual PTOViSiOnS of the instrument. Financial assets and liabilities are offset. with the net amounts presented in the financial ststements. when there is a legalty enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liabilrty simulianeous. 13-
THE MEfHODIST CHURCH CHESTER AND STOKE ON TRENT DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 A¢counng pollcles Icontlnued) Ba51c Ilnanclal assets Basic financial assets. which include debtors and cash and bank balances. are initially measured at transaction price including 1[anctIOn costs and are subsequently carrie<l at amortised cost using the effective interest method unlegs the arrangement constitutes a financing transaction. where the transaction is measured at the present Value of the future receipt5 discounted at a market rate ol interest. Financial assets classified as receivable within one year are not amortised. Ba$le flnanelal Ilablllues Basic financial li8bilities. including creditors and bank loans are initially recognised at transaction price unless the aTrangement constitutes a financing transaction. where the debt instrument is measured at the present value of the future payments discounted at a market rate of interesL Financral liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost. usingthe effective interest rate method. Trade creditors are ob5igations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classifved as current liabilities if payment is due within one year or less. If not, they are presented as non<urrent liabilities. Trade creoitors are recognised initially at transacbon price and subsequently measured at amortised cost using the effective interest method. DeAecognltloft of flftanelal Ilabllltles Financial liabilities are derecogrkiseil when the char's contractual obligations expire or are discharged or cancelled. 1.12 Employee ben¢fits The cost of any unused holiday entitlement i5 recognised in the peri1 in which the employee's services are received. Tertnination benefits are recognwd tmmediately a5 an expense when the Char is demonstraiily committed to terminate the employment of an employee or to provtde temination benefrts. 1.13 Retlrement beneflts Payments to defined contribution tirement benefit schemes are charged as an expense as theyfall due. CrltlrAI a¢¢ountlng estlmatss and ludgernents In the application of the charrty's accounting poli¢ies. the trUee$ are required to make judgements, estimates and assumptions about the carrying amount of assets ano liabilrties that are not readily apparent from other SOUTces. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ frtsm these estimates. The estimates and undèrtying assumptions are reviewed on an ongoing basis. Rewsions to accounting estimates are recognise(S in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. 14-
THE MEfHODIST CHURCH CHESTER AND STOKE ON TRENT DISTRICT NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 Donatlons and 18gacl85 2022 2021 Circuit contribLktions 1ved C A P F new levies Assessments from Circuts Beacon Chrtstian Fellowship grants and donations Sundry income Oiher grants received Museum receipts and book sales Book Centre sales Galley Centre income 74,608 176.297 538.611 11,070 83,088 110.060 26.986 66,025 1,780 54.779 132,786 518.372 11,093 461.717 237.501 15,715 71,704 1.088.525 1,503,667 Income from Investments Unre5trlcted Rgstrlcted funds lunds 2022 2022 Total UnrestTlcted Re5trlcted funds funds 2021 2021 Total 2022 2021 Ineome from listeil investments Other income Interest reeeivable 10.960 27.200 2.297 10.960 27.200 2.682 4,770 18,937 1,573 4.770 18,937 1,856 385 283 385 40.457 40.842 283 25.280 25,563 othgr In¢ome Unrestrlcted Restrlrted funds funts 2022 2022 Total Unrestrlcted Restricted funds funds 2021 2021 Total 2022 2021 Coronavirusjob retention scherne Coronavrius support grant 12,775 7.143 12.775 7,143 14.888 36,357 5,933 20,821 36,357 19.918 19,918 51.245 5,933 57,178 15-
THE MEfHODIST CHURCH CHESTER AND STOKE ON TRENT DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 Expendltur¢ on ralslng fund$ Restrlcted funds 2022 Restilcted funds 2021 Investment management costs Support costs 2.369 577 Charttable actlvltles 2022 2021 Wages The Beacon C.F. resour¢es Costs relating to Book Centre sales Costs relating to museum receipts and book sales Safeguarding Children and Youth work supp)rt Book Centre employee c95ts Galley Centre expenditUTe Cheshire South team 115.998 9.222 59,918 3.223 33.889 75,606 14.076 47,537 2.550 27,947 1,588 60,211 58,896 4.432 11.547 11.415 297.125 240,930 Grants payable (see note 81 696.750 664,793 Support Costs (see note 91 Governance costs Isee note 91 103.266 1,778 79,919 2,754 1,098.919 988.396 Analytsls by fund Unrestricted funds- general Restricted funds 844,916 254.003 1.098.919 For the year ended 31 August 2021 Unrestricted funds- general Restricted funds 781.796 206.600 988,396 16-
THE METHODIST CHURCH CHESTER AND STOKE ON TRENT DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 Grants payable 2022 2021 Contribuiion to Methodist Churoh Fund Churches 2nd Engiesea Brook Museum 554,050 142,700 557.373 107,420 696.750 664.793 Support costs Support¢osts Governance costs 2022 2021 Manag•ment Manse expenes General expenses Office- operating costs Travel expenses Flnance Bank Charges Human resourees Training and development other Depreciation Othgr support $ts Rent and rates Insurance Repairs to property 12.819 32,747 12.819 32,747 3.369 47,480 2,838 1.488 592 592 1.373 1.373 1.364 8.002 8.002 1.500 550 550 626 L179 5,014 34.558 5,911 1,179 5,014 34,558 5,911 798 4.451 6,779 4,139 4,266 821 Professional lees Equipment leasing Governanc¢ cogts Ecumenieal expenses 521 521 1.778 1.778 2,754 103.266 L778 105,044 82,673 Analysed between Charitable activitie5 103.266 L778 105,044 82,673 10 Net rn0ent In tunds 2022 2021 The net movement in funds is Stated after Charn{CredIting). Depreciation of owned tangible fixed assets 550 626 17
THE MEfHODIST CHURCH CHESTER AND STOKE ON TRENT DISTRICT NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 Tntstees. remuneratlon and benellts There were no trustees, remuneration or other benefits for the year ended 31 August 2022 nor the for the year ended 31 August 2021. Tnt¢'S p¢n5$S 2022 2021 Trustees, expense5 12 Stafl ¢osts Number of employees The average monthly number of employees duringthe year was= 2022 Number 2021 Number District Office Eng1esea Brook Chapel & Museum Methodist Book Centre Irnrnerse District Tearn Staffordshire Moorlands Team 17 17 There were no employees whose annual remuneration £60.000 or more. Galns and losses on Investments Restrftted funds 2022 Restrlcted funds 2021 Gains/llossesl arising on= Revaluation of investments 131,2421 52,070 14 Taxatlo The charity is exempt from taxation on its activities because all its income is applied for charitable purposes. 18-
THE METHODIST CHURCH CHESTER AND STOKE ON TRENT DISTRICT NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 AUGUST2022 15 Tanglble flxed assets Freehokl Leasehok1 Flxtwt$ and flttlngs Computer eq¥lpment Total Cost At I September 2021 Additions 510.796 89,562 22,991 114 8.410 631,759 114 At 31 August 2022 510.796 89,562 23.105 8.410 631.873 Depreclatlon and Impa[mrt At I September 2021 Depreciation charged in the year 89.562 17.379 259 6,470 291 113,411 550 At 31 August 2022 89.562 17.638 6,761 113,961 Carrylng arnovnt At 31 August 2022 510,796 5.467 1.649 517,912 At 31 August 2021 510.796 5.612 1,940 518,348 Property owned by the District comprises of cottages at Engjesea Brook and the District Manse at Wistaston, Cheshire. Bemersley House, Gitana Street. Stoke-on-TrenL from where the activity of the Methodist Book Centre is conducted. was sold during the prior year for a nominal amount and leased back to the Book Centre for ten years on a peppercorn rent. 16 FIx8d asset Investments Llsted Inve5tment5 Cost or valuatlon At I September 2021 Valuation changes 470,309 131,2431 At 31 August 2022 439,066 Carrylng amount At 31 August 2022 439,066 At 31 August 2021 470,309 17 Stocks 2022 2021 Stocks 54,050 64,819 19-
THE MEfHODIST CHURCH CHESTER AND STOKE ON TRENT DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 Debtors 2022 2021 Amounts falllng due wlthln one year Trade debtors Other debtors Prepayments and accrued income 3,025 460 2,871 2.385 2,361 6.356 4,746 19 credIto amounts falllng due wlthln one year 2022 2021 Other taxation and social security Trade creditors Accruals and deferred inoome 676 4.731 4.231 235 4.330 1,491 9,638 6.056 20 Retlrement benefit xhemes 2022 2021 Defined eontvlbutlon schemes Charge to ststement of financial activities in respect of defined contsibution schemes 32,747 47.480 The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independentty adrninistered fund. -20-
THE METHODIST CHURCH CHESTER AND STOKE ON TRENT DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST2022 21 Restrl¢tsd fund9 The restricted funds of the charity compiise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used. At I S¢ptember 2021 In¢omlng resources Resources expended Transfers Galns and At 31August losse$ 2022 Benevolent Fund District Ailvance Fund J Michael Eaton Mernorial Fun Englesea Chapel and Museum Fund Education and Youth Fund Irnmerse. Kidsgrove District Priorities Fund 921 1,230 292,114 262.291 1121,5331 122,0001 410.872 11,929 56 1341 11,951 460,436 97.731 128.4311 429,736 5.413 5,413 7.775 1,780 14,8721 4,683 527.170 38.160 IL5021 140.0001 131,2421 492,586 1,305,758 400.327 1256.372 162.0001 131,2421 1.356,471 Pr8vlou$ year. At I Septembei 2020 Ineomlng Tesources Resouws expended Transfers Galns and At 31 August losses 2021 Benevolent Fund District Advance Fund J Michael Eaton Memori81 Fund Englesea Chapel and Museum Fund Education and Youth Fund Immerse. Kidsgrove District Priorfties Fun 696 225 921 276,332 188.652 1107.473} 165,3971 292.114 12.414 15251 11,929 445,610 5L711 191.8851 55,000 460,436 2.604 612 12.2001 4.397 5,413 7,481 294 7,775 475.IlJ) 52,070 527,170 745,137 716.340 1201,7891 16,OCX)I 52,070 1.305,758 21-
THE MEfHODIST CHURCH CHESTER AND STOKE ON TRENT DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST2022 21 RtrIcted funds Icontlnuedl The restricted funds are asfollows= Benevolent Fund The fund provides Mlest sums frorn donalions tg all¢)w the Chair to tneet cases ol petsonal need in a confidential way. District Advance Fun Thi5 fund 15 set up under Methodist standing orders and is funded by a levy on the end of year balances of the Circuit Model Trust Funds of the circuits within the District and by È distribution from the Connexional Priory Fund. The fund is administered by the Resources Mission Commrttee who award grants in accordance with the fund policy to support personnel or property projects relateLI to mission and minislry and to support ouireach, evangelism and ecumenical work. J Mlchael Eaton Memorial Fund This is an estsblished fund to make contributions to I[21 projects at the discretion of the trustees. En¥esea Chapel and Museum Fund This fund supports the property and undertakings of Engiesea Brook Chapel and Museum. Educatlon and Youth Fund Thi5 fund supports Ihe promotion and undertakingof thildren's Events and Youth Work support within the Disvict. Immerse, Kidsgrove Thi5 fund supported a Community based at The Galley in Kidsgrove, Stsflordshire until l August 2020. The Cotnmunity is currently lookingfor altemative accomodation. District Prioritses Fund Th fund is formed by the release of the W G Barratt Memorial monies to the District ty the Connexional Team of the Methodist Church as restricted funds but free from any requirements of the 8airatt Trust. The District ha5 resolved to use these funds to support the Distrirt Priorilles. The funds are managed by the DPC under the guidance of the District Leadership Team. 22 Unro5trl¢tsd funds- de51gnated These are unrestricted funds which a material to the charitys activrties. At I September 2021 Transfers At 31 August 2022 The Methodist Book Centre (from 8emersley House) 68.779 20,000 88.779 Prevlous year: At I S¢ptemb¢r 2020 TranstÈrs At 31 August 2021 The Methodist B(KJk Centfe Ifrom Bemersley House) 48,779 20,000 68.779
THE METHODIST CHURCH CHESTER AND STOKE ON TRENT DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST2022 Unrestrlctsd funds- deslgnated (Contlnued) The designated lun¢J is held for the use of The Methodisl Book Centre. as approved by the District Policy Committee. The Methodist Book Centre fund represents cash originally held in the Bemersley House bank account and transferred to the General Fund bank account following the sale of the property. At 31 August 2022 £88,779 12021.. £68.7791 was held and earmarked for refurbi%hment of the Book Centre. 23 Unrestrl¢ted funds The unrestricted funds ol the charity comprise the unexpended balances of donations and grants which are n(rt subject to specrfic condiiions by donors and grantors as to how they may be used. These include designated funds which have been Set aside out of unrestricted funds by the trustees for specific purposes. At I SeptembÈr 2021 Incomlng re50urc85 Resources expended Transfers At 31 August 2022 General funds 412.064 748.958 1844.9161 42.000 358.106 Provlous year. At I September 2020 Incomlng resourtes Resources ¢xpgnded Transfers At 31 August 2021 General funds 343.180 870.680 178L7961 120,0001 412,064 24 Analysls ol net assets bÈtweÈTr funds Unrestrfcted Unrestrlcted funds funds de51gnated 2022 Restrlcted funds Total general 2022 2022 2022 At 31 August 2022: Tangible assets Investments Current assets/iiiabilitiesl 192,505 325,407 439,066 591.998 517,912 439,066 846.378 165.601 88,779 358.106 88.779 1,356.471 1,803,356 Unrestrlcted Unrestrlcted ds funds g¢neral deslgnated 2021 2021 RtrIcted funds Total 2021 2021 At 31 August 202L' Tangible assets Investments Current asselsllliabilrtiesl 192.941 325,407 470,309 510,042 518,348 470.309 797,944 219,123 68.779 412.064 68,779 1.305,758 1,786.601 -23-
THE MEfHODIST CHURCH CHESTER AND STOKE ON TRENT DISTRICT NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 AUGUST2022 25 Flnanclal ¢ornrnltments, guarantees and contlngent Ilabllltle5 The District Advance FLJnd tnade Ministry grant payments of £146,7(X) and Projecr grant payments of £nil in the year ended 31 August 2022, and had conts"nuing commitments to make payments in succeeding years as follows.. Wtlhin one year Within 2 to 5 years £173.422 £36.244 Total outstsnding Commitments made by the District Advance Fund as at 31 August 2022 were £209.645. Unallocated reserves in the Fund as at 31 August 2022 were £201.227. 26 Related partyIfabC5 There were no Oisclosable relateil party transactions during the year ended 31 August 2022. 27 CollecOn of l)ookg The Chapel and Museum ai Englesea Brook holds a collection of rare and valuable books (elating to the MethLxlist Church and its doctrinal standards and discipline. Individual items in the collection have been donated over many years. The collection is appropriately insured. 28 Methodlst Book Centre, Hanley The Book Centre is an integral part of the Charity. lis purpose is for the provision of Christian education and the spreading of the Gospel. li has a trading year end of 31 January. and the Tesutts for the year ended 31 Janu8ry 2022 are incorporated intr> the accounts of the District lor its year ended 31 August 2022. 29 Cash generated fwom operallons 2022 2021 Surplus for the year 16,755 649,505 Adjustments for.. Investment income recognised in statement of financial activities Fair value gains and losses tsn invesiments Depreciation and impairment of tsnEible fixed assels 140.8421 31,242 550 125,5631 152,0701 626 Movements in working caprtal: Decrease In stocks Ilncreasel/decre3se in debtors Inerease/ldecreasel in creditors 10.769 11.6101 3,583 3.354 2.566 18,1271 cash generated from operotlons 20.447 570.291 30 Analysls of ehanges In net funds The charity had no material debt during the year. -24-
THE METHODIST CHURCH CHESTER AND STOKE ON TRENT DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST2022 31 Prtor peilod adjustment Prior period adjustments were made to transactions that had prevtously been inappropriately accounted for in accordanoe with the FRS 102 financial reporting framework. A summary of the adjustrnents rnade to the prior year rigures is diselosed below. The adjustment was made for cash held in investments. The 2021 figures have been reststed as follows= Cash held at bank was originally £677,574 and was restated to £734,435 Fixed asset investments wès orignalty £527.170 and was restated to £470,309 25-