REGISTERED CHARITY NUMBER 1134142
## Report of the Trustees and
Financial Statement for the Year ended 31 August 2023
for
Blackpool and South Fylde Methodist Circuit
1
Blackpool and South Fylde Methodist Circuit Trustees’ Annual Report for the Year Ended 31 August 2023
## Introducton
Welcome to the Trustees' Annual Report of the Blackpool and South Fylde Methodist Circuit which covers the year to 31st August 2023, a year in which a lot of change has taken place and progress has been made with many of our key objectives. Blackpool Circuit and South Fylde Circuit successfully merged on the 1[st] September 2022 and there are now 9 churches in the circuit.
## Aims of the organisaton
The Blackpool and South Fylde Circuit of the Methodist Church, encouraged by the strategy of the Lancashire Methodist District, seeks the transformation of lives and communities within the geographical area of Blackpool and South Fylde. This will be enabled by offering good quality worship in a variety of styles, exploring fresh expressions of Church and remaining faithful to appropriate traditional expressions, engaging in community outreach projects, supporting the development of children, young people and families. Spirituality for older people and in the revitalisation of work. Within this broad vision, each Church in the Circuit is called to make disciples, to encourage people in their faith, to serve their communities and to focus upon their strengths and their distinct expression of community.
## Review of the year
The Blackpool and South Fylde Methodist Circuit has embraced our District's Strategy "Transforming Lives and Communities" and continues to support our nine local Churches in moving forward. We have made good progress with our work with children, young people and families, with developing a community focus across the Circuit, with developing new forms of worship and teaching.
The new structure based on three ministry teams each consisting of a presbyter/part-time Lay-worker and /or a presbyter/Deacon has worked well.
We have continued to undertake training of Local Preachers.
Circuit staff and qualified volunteers continue to provide training for all Church members working with children and vulnerable adults. We ensure that all staff, lay officers and volunteers who are required to undertake safeguarding training have received the training.
The accounts of the Blackpool and South Fylde Methodist Circuit for the year ended 31st August 2023 show a deficit of £1572 on the General Fund and Restricted Fund combined, with £309,851 surplus in the Circuit Model Trust Fund.
## Circuit Income
Total income on the General Fund and Restricted Fund combined for the year to 31st August 2023 was £303,662. Circuit income is primarily drawn from the Assessment paid by the Circuit churches (£229 914) in 2022/23 and property rental (£23 947). This includes grants for Wesleys of £15 955. This increase is due to the merger of Blackpool and South Fylde Circuit and the additional 2 manses.
## Circuit Expenditure
Total expenditure on the General Fund and Restricted Fund combined for the year to 31st August 2023 was £305,234. The major expenditure was stipends, salaries and associated costs (59% of total expenditure) which increase each financial year in line with Conference approved rates. This includes spending on Wesleys of £11 954. This increase is due to the merger of Blackpool and South Fylde Circuit and the additional 2 manses.
The other significant expenditure in 2022/23 was the District Assessment on which we spent £35,988, 12% of our expenditure. This is the Circuit's contribution to the District and Connexion, of which a significant part is used to fund the work of the wider Methodist Church.
2
## Blackpool and South Fylde Methodist Circuit Trustees’ Annual Report for the Year Ended 31 August 2023
## Fund balances
As at 31 August 2023 the net current assets of the Circuit were £90 987 on the General Fund and £447 698 on the Circuit Model Trust Fund. The increase in CMTF is due to the sale of 2 churches in the old Blackpool dcircuit. Net current assets for the restricted Wesley’s fund was £3,001. Giving a total net current assets for the Circuit of £585,890.
## Plans for 2023/24
This year Rev’d Andrew Halstead joined us on the 1[st] September 2022 and sadly Rev'd Louise Makin curtailed on the 30[th] August 2023 which meant we had to go into stationing in 2022/2023. The Circuit continues to function with two ministry teams, each comprising of a Presbyter and part-time Lay-worker/Deacon, the latter both employed by the Lancashire Methodist District but charged to the Circuit.
The Financial plan for 2023/24 produces a budget surplus of £950, taking the gross balance on the General Fund at 31st August 2024 to £91 937, but the longer term plan shows that this will reduce to by the end of 2024/25 to £63 437. This demonstrates that we will struggle to hold £72,000 in reserve, ie three months' expenditure as required by our Reserves Policy.
## BLACKPOOL AND SOUTH FYLDE METHODIST CIRCUIT
## AIMS AND ORGANISATION
## Purposes of 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
Main actvites undertaken for the Public Beneft The Blackpool and South Fylde Circuit supports the nine churches of the Circuit in carrying out their activities in their communities, in particular:-
- the provision 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 provision of sacred space (a building) for prayer and contemplation;
- the resourcing of pastoral work including visiting the sick and bereaved;
- the promotion of Christianity through the staging of events and services;
- the provision of chaplaincy services to schools, care homes and other institutions;
- the provision of social activities with a focus on particular age groups which are open to everyone;
- the provision of space and facilities for a range of community activities.
Public Beneft
We confirm the trustees have had regard to the Charity Commission’s guidance on public benefit.
3
## Blackpool and South Fylde Methodist Circuit Trustees’ Annual Report for the Year Ended 31 August 2023
## 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 Superintendent along with the Circuit Stewards and the Circuit Leadership Team.
## 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 Partes
The Circuit is part of the Lancashire District and is also accountable to the Methodist Conference. The following Methodist Churches are part of the Circuit:-
The Drive Methodist Church Church Road Methodist Church Layton Methodist Church
Fairhaven Methodist Church Lytham Methodist Church New Central Methodist Church
Kirkham Methodist Church Freckleton Methodist Church
South Shore Methodist Community Church
## Key Objectves for 2023/24
(i) To act as a provider of resources for the Methodist Churches in Blackpool and South Fylde, in particular financial, human and training resources and resources to encourage spiritual development.
(ii) To exercise ministerial oversight and pastoral care of the local Churches in the Circuit and to support the ministry team.
(iii) To further advance the support of practical work with children, young people and families across the Circuit.
(iv) To encourage faith development amongst the people of the Circuit.
(v) To continue to encourage and support those who are called to be lay preachers and to manage their training programmes;
(vi) To seek to ensure full compliance across the Circuit with Methodist Safeguarding Policy and Procedures, including training for staff and volunteers.
(vii) To seek to ensure successful implementation of the new Circuit structure with two ministry teams, each comprising one presbyter and one lay-worker.
(viii)To seek a probation presbyter for Kirkham and Fairhaven churches for 1[st] September 2024
## BLACKPOOL AND SOUTH FYLDE METHODIST CIRCUIT
## Risk Management
The major risks are associated with our Churches and they have been identified and recorded by the Church Officers with professional advice taken as required. The key risk area for the Circuit is around the six manses and we review risks in conjunction with the occupying ministers.
Each Church undertakes a regular annual review process and records the outcome.
4
Blackpool and South Fylde Methodist Circuit Trustees’ Annual Report for the Year Ended 31 August 2023
Income and Expenditure is monitored against the approved annual budget on a quarterly basis to identify trends and problem areas as part of the risk management process to avoid unforeseen calls on reserves. Significant abnormal expenditure is authorised by the Circuit Meeting.
## 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 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 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 seek to work with anyone who has suffered abuse, developing with them an appropriate ministry of informed pastoral care.
- We seek to challenge any abuse of power, especially by anyone in a position of trust.
• We 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 follow legislation, guidance and recognised good practice
The Blackpool and South Fylde Methodist Circuit commits itself:
- to ensuring the implementation of Connexional Safeguarding Policy, government legislation, guidance and safe practice in the Circuit and in the churches.
- 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.
- to carrying out risk assessments for circuit events involving children, young people or vulnerable adults as stated in our Policy Document agreed on September 2022, namely:
- Circuit events are to be notified to the District Safeguarding Officer prior to these being agreed to ensure that all permissions, risk assessments and good practice guidelines are in place.
- All those involved in leading and running the event must be aware of the procedure.
- The event should have been planned effectively and attention given to the following issues:
- Risk assessment and suitability of the activity and the premises
- The appointment of a team to take charge of the event, including safeguarding and first aid personnel (particular health or ability needs should be taken into account)
- Numbers of children, young people or vulnerable adults involved
- Transportation - following good practice guidelines.
5
## Blackpool and South Fylde Methodist Circuit Trustees’ Annual Report for the Year Ended 31 August 2023
This information is to be sent to the District Safeguarding Officer for approval PRIOR to the event being agreed.
## Reserves Policy
The Circuit Reserves Policy is to hold a minimum sum equivalent to three months’ average expenditure. This is currently £72 000 and 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.
At 31st August 2023, the General Fund held £90 987, gross, so we held the target reserve.
At 31st August 2023, the Circuit held a balance of £447 698 on the Circuit Model Trust Fund. This Fund derives from sales of chapels and manses.
Our reserves policy for the management of this Fund is as follows:-
- £350 000 available for property and/or mission projects in the future.
- £100 000 available for general Circuit purposes, largely manse repairs and maintenance.
## BLACKPOOL AND SOUTH FYLDE METHODIST CIRCUIT
## Trustee’s Annual Report on Finance and Governance
## Basis of preparaton and legal framework
The Charity’s annual report and accounts for the year ended 31 August 2022-23 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(FRS) 102.
Registration Charity Number: 1134142
Date of registration 5th February 2010
Main communication address: 8, Royal Troon Court, Kirkham, Preston PR4 2TF
The members of the Blackpool and South Fylde 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 ministers and ofcers:
Actve circuit ministers Rev Stuart Wild
Rev Louise Makin (curtailed 31[st] August 2023) Rev Andrew Halstead (appointed 1[st] September 2022) Deacon Kim Gabbatiss (0.5)
Circuit Lay workers Judith Smith (retired 31[st] August 2023) Mandy Laird-Hall
Circuit Stewards Michael Steele Edwards Katharine Davies
6
## Blackpool and South Fylde Methodist Circuit Trustees’ Annual Report for the Year Ended 31 August 2023
Melvyn Slater
David Leach
Sandra Waddington Mark John Walmsley
Circuit Safeguarding Ofcer Margaret Porter and Sandra Waddington (temp)
Katharine Davies acted as the principal officer overseeing the day-to-day financial management and accounting for the Circuit during the year.
Accountant and Independent Examiner Leanne Nield ACA Arc Accountancy Solutions Limited 51 Laverton Road Lytham St. Annes FY8 1EN
I confirm that I have prepared the accounts from the records of the Circuit and that they include all funds under the control of the Circuit Meeting
**----- Start of picture text -----**
Signature of Date
Katharine A Davies
Treasurer
Name Katharine Davies
Address
8, Royal Troon Court, Kirkham, Preston. PR4 2TF
**----- End of picture text -----**
## **Presentation to the Circuit Meeting for approval.**
I confirm that the Accounts have been presented to the Circuit Meeting on 12th Sept 2023
and were approved. Signature of the Stuart Wild Chair of the meeting Name of the Chair of **Rev Stuart Wild** the meeting Date 12th September 2023
7
## Blackpool and South Fylde Methodist Circuit Trustees’ Annual Report for the Year Ended 31 August 2023
## Appendix A
## Circuit Meetng Membership as at 31[st] August 2023
## **MINISTERS**
Circuit Ministers
l
HMP Chaplain, Kirkham
Rev Stuart Wild Superintendent Rev Louise Makin (curtailed 31.08.2023) Rev Andrew Halstead (appointed 1.09.2022) Deacon Kim Gabbatiss Rev Tony Davies
## **SUPERNUMERARY MINISTERS**
Rev Alan Clark
Rev Malcolm Maymand Rev Joan Edwell Rev Barrie Lees Rev Stephen Heath Rev Janet Pybon Rev David Tidswell
## **CIRCUIT STEWARDS**
Michael Steele-Edwards Katharine Davies Melvyn Slater David Leach Sandra Waddington Mark John Walmsley
## **CIRCUIT MEETING SECRETARY**
Sue Leach
## **CIRCUIT CHURCH REPRESENTATIVES**
The Drive Methodist Church Patricia Brown Ray Brown Eileen Beedle Church Road Methodist Church Janette Farley Catherine Peak Monica Bissett Fairhaven Methodist Church Patricia Hirst
8
Blackpool and South Fylde Methodist Circuit Trustees’ Annual Report for the Year Ended 31 August 2023
||Roger Peace|
|---|---|
||Neil Lowe|
||Clare Harris|
|Lytham Methodist Church|William Douglas Martin|
||Mike Bell|
||Ann Bullick|
||Ann Hearne|
||Margaret Porter|
|Freckleton Methodist Church|David Banks|
||Laura Gill|
|Kirkham Methodist Church|Gillian Womersley|
||Lucinda Baldwin|
||Ian Womersley|
Circuit Meetng Membership as at 31[st] August 2023 (contnued)
|Layton Methodist Church|Jo Walmsley|
|---|---|
||Kathryn Pritchard|
||Ruth Sellers|
|New Central Methodist Church|Trevor Mustoe|
||Ken Davitt|
||Michael Ardron|
||Jackie Eltoft|
||Res: Pat Mustoe|
||Jennifer Allcock|
|South Shore Methodist Community Church|Dorothy Chatterton|
||Dawn Cheetham|
||Pauline Scott|
||Joy Gillott|
|**OTHER REPRESENTATIVES**||
|MHA|Jennifer Breare|
9
## Blackpool and South Fylde Methodist Circuit Trustees’ Annual Report for the Year Ended 31 August 2023
Overseas Missions Treasurer Local Preachers MwiB
Richmond Neale Andrew Barratt Jennifer Jones
10
## Blackpool and South Fylde Methodist Circuit Statement of Financial Actvites for the Year Ended 31 August 2023
|**Income**
1 Donations and legacies
2 Income from monetary investments
3 Income from investment properties
4 Assessments on Churches
5 Capital Receipts & Levy refund
6 Grants received
7 Other charitable income
8**Total income**
**Expenditure**
**Expenditure on charitable activities:**
9 Grants and donations
10 Stipends, salaries, NIC, pension
costs
11 Property maintenance
12 District Assessment & Levy
13 Purchase of property
14 Depreciation
15 Office, administration and travel
expenses
16 Other outgoings
17**Total charitable expenditure**
**18 Net income before investment**
**losses/gains**
19 Losses/gains on monetary
investments
20 (Losses)/Gains on investment
properties
**21 Net income/(expenditure) before**
**transfers**
22 Transfers between funds
23 Reclassification of funds
24 Other gains/(losses)
**25 Net movement in funds**
26 Funds brought forward
27 Property funds brought forward
28 Total Funds brought forward
29 Total funds carried forward|**Note**
**General Fund**
**(Unrestricted)**
**Circuit Model**
**Trust**
**(Unrestricted)**
**Designated**
**Funds**
**(unrestricted)**
**Restricted**
**Funds**
**Total**
**2022-23**
**RESTATED**
**Total**
**2021-22**
£
£
£
£
£
£
**0**
**0**
3,115
9,775
**12,890**
**873**
23,947
**23,947**
**17,033**
229,914
**229,914**
**169,353**
3
339,042
**339,042**
**0**
11
15,955
**15,955**
**8,998**
30,720
**30,720**
**17,762**
**287,696**
**348,817**
**0**
**15,955**
**652,468**
**214,019**|
|---|---|
||4,000
34,552
11,954
**50,506**
**31,644**
4
179,144
**179,144**
**180,486**
50,595
**50,595**
**48,417**
35,988
4,190
**40,178**
**69,764**
**0**
**0**
**0**
**0**
20,724
224
**20,948**
**30,643**
2,829
**2,829**
**10,838**
**293,280**
**38,966**
**0**
**11,954**
**344,200**
**371,792**|
||**(5,584)**
**309,851**
**0**
**4,001**
**308,268**
**(157,773)**|
||0
0
7
695,000
695,000
0
**689,416**
**309,851**
**0**
**4,001**
**1,003,268**
**(157,773)**|
||1,000
(1,000)
0
(696)
0
0
0
0
**690,416**
**309,851**
**0**
**3,001**
**1,003,268**
**(158,469)**|
||95,562
137,847
0
0
233,409
391,878
1,895,000
0
0
1,895,000
1,895,000
1,990,562
137,847
0
0
2,128,409
2,186,182|
||**2,680,978**
**447,698**
**0**
**3,001**
**3,131,677**
**2,128,409**|
11
## Blackpool and South Fylde Methodist Circuit
## Balance Sheet
## for the Year Ended 31 August 2023
||**Not**
**e**|**General Fund**
**(Unrestricted)**
£|**Circuit Model**
**Trusts**
**(Unrestricted)**
£|**Designated**
**Funds**
**(Unrestricted)**
£|**Restricted**
**Funds**
£|**Totals**
**2023**
£||**RESTATED**
**Totals 2022**
£||
|---|---|---|---|---|---|---|---|---|---|
|**Fixed Assets**|8
1,258,000
1,258,000
8
1,332,000
1,332,000
**2,590,000**
**2,590,000**|8
1,258,000
1,258,000
8
1,332,000
1,332,000
**2,590,000**
**2,590,000**|8
1,258,000
1,258,000
8
1,332,000
1,332,000
**2,590,000**
**2,590,000**|8
1,258,000
1,258,000
8
1,332,000
1,332,000
**2,590,000**
**2,590,000**|8
1,258,000
1,258,000
8
1,332,000
1,332,000
**2,590,000**
**2,590,000**|8
1,258,000
1,258,000
8
1,332,000
1,332,000
**2,590,000**
**2,590,000**||
|---|---|---|---|---|---|---|---|
|Circuit Manses & Equipment|8|1,258,000||||1,258,000|860,000|
|Investment Properties (church
buildings)||||||||
|Investment Properties (manses
rented out)|8|1,332,000||||1,332,000|1,035,000|
|**_Total fixed assets_**||**2,590,000**||||**2,590,000**|**1,895,000**|
|**Current Assets**||||||25,767
447,698
91,255
21,170
**585,890**
44,213
44,213
**541,677**
**3,131,677**
**0**
**0**
**3,131,677**
2,680,978
447,698
**3,128,676**
3,001
**3,131,677**||
|---|---|---|---|---|---|---|---|
|Debtors|9|25,767||||25,767|27,393|
|Loans by the Circuit||||||||
|Investments with TMCP|||447,698|||447,698|137,847|
|Central Finance Board Deposits||91,255||||91,255|108,648|
|Cash at Bank and in hand||18,169|||3,001|21,170|7,034|
|**_Total current assets_**||**135,191**|**447,698**||**3,001**|**585,890**|**280,922**|
|**Current liabilities**||||||||
|Creditors (due in under 1 year)|10|44,213||||44,213|47,513|
|Grants payable||||||||
|**_Total current liabilities_**||44,213||||44,213|**47,513**|
|**_Net current assets/liabilities_**||**90,978**|**447,698**||**3,001**|**541,677**|**233,409**|
|||||||||
|**_Total assets less current_**
**_liabilities_**||**2,680,978**|**447,698**||**3,001**|**3,131,677**|**2,128,409**|
|||||||||
|Long term liabilites
(due afer more than oneyear)||||||||
|Grants payable||||||**0**|**0**|
|Loans to the Circuit||||||**0**|**0**|
|||||||||
|**_Net assets_**||**2,680,978**|**447,698**||**3,001**|**3,131,677**|**2,128,409**|
|**Funds of the Circuit**||||||||
|General Fund (Unrestricted)||2,680,978||||2,680,978|1,990,562|
|Circuit Model Trust Fund
(Unrestricted)|||447,698|||447,698|137,847|
|Designated Funds (Unrestricted)||||||||
|**_Total Unrestricted Funds_**||||||**3,128,676**|**2,128,409**|
|Restricted Funds|||||3,001|3,001||
|Endowment Funds||||||||
|**_Total Funds_**|11|**2,680,978**|**447,698**||**3,001**|**3,131,677**|**2,128,409**|
12
## Blackpool and South Fylde Methodist Circuit Cash Flow Statement for the Year Ended 31 August 2023
||**2023**|
|---|---|
|**Statement of cash flows**|**£**|
|**Cash from operating activities**||
|Net cash used in operating activities|**(45,338)**|
|**Cash flows from investing activities**||
|Dividends and interest from investments|12,890|
|Proceeds from the sale of tangible fixed assets|339,042|
|**Net cash provided by investing activities**|**351,932**|
|**Change in cash and cash equivalents in the year**|**306,594**|
|Cash and cash equivalents at the beginning of the year|253,529|
|**Cash and cash equivalents at the end of the year**|**560,123**|
||**2023**|
|---|---|
|**Reconciliation of net movement in funds to net cash flow from operating activities**|**£**|
|Net income for the period (as per Statement of Financial Activities)|309,968|
|**Adjustments for:**||
|Dividends and interests from investments|(12,890)|
|Capital receipts|(339,042)|
|Decrease/(increase) in debtors|1,626|
|(Decrease)/increase in creditors|(5,000)|
|**Total cash generated from operating activities**|**(45,338)**|
||**2023**|
|---|---|
|**Analysis of cash and cash equivalent**|**£**|
|Cash at bank|21,170|
|Central Finance Board Deposits|91,255|
|Trustees for Methodist Church Purposes deposits|447,698|
|**Cash and cash equivalents at the end of the reporting period**|**560,123**|
13
## Blackpool and South Fylde Methodist Circuit Notes to the Accounts for the Year Ended 31 August 2023
## 1 Basis of accountng policies
## i Accountng standard
The financial statements have been prepared in accordance with 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) - (Charities SORP (FRS 102)).
## ii Public beneft entty
The Blackpool and South Fylde Methodist Circuit meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical costs or transaction value unless otherwise stated in the relevant accounting policy note(s) below.
## iii Basis
These accounts have been prepared on the basis of historical cost except that investments and fixed asset properties are shown at their market value at the end of the year. The accruals basis has been used and trustees present accounts that 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
The accounts have been prepared in accordance with applicable charity law in England this being the Charities Act 2011, The Charities (Accounts and Reports) Regulations 2008 SI 2008/629 and Accounting and Reporting by charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with FRS 102.
## vi Going concern
Based on the monetary assets and human resources available at 31 August 2023, the trustees believe that the Circuit is a going concern.
## vii Consolidaton
The Circuit has denominational regulatory oversight in respect of the work of the Churches within the Circuit but has no legal or operational control of those Churches and their governing bodies except in extreme circumstances. For this reason, the financial statements of Churches within the Circuit are not consolidated into these financial statements.
## viii Income recogniton
Income is brought into account when there is entitlement and the amount is reliably measurable once it is more likely than not that the economic benefit of the income will be forthcoming.
Individual amounts categorised as Other income in the SOFA will be shown separately if they are considered material.
The Circuit acts as agent in two matters:
- the collection from Churches and payment over of their contributions to various funds controlled and administered by The Methodist Church - "Connexional Funds"
- the administration (application, collection and disbursement) of grants requested by Churches within the Circuit from, but not limited to, the District and Connexion. In all these matters the transactions are not reflected in the SOFA because they are the income of either the Connexion or Churches as appropriate. Instead, the transactions are disclosed in the Notes to the Accounts as required by SORP (FRS102), module 19.12n.
In accordance with the Charities SORP (FRS 102), the time of volunteers is not recognised. If goods are donated, a value will be shown in the SOFA or Notes where the value is considered material.
14
## Blackpool and South Fylde Methodist Circuit Notes to the Accounts for the Year Ended 31 August 2023
## ix Expenditure
This is recognised when a liability is incurred, or a constructive obligation arises, where the amount is reliably measurable and it is considered more likely than not that there will be an outflow of economic benefit.
## x 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.
## xi VAT
Since the Circuit is not VAT registered, all input VAT is charged with the expenses to which it refers.
## xii Critcal accountng estmates and judgements
In the application of the Charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.
The trustees have made judgements and estimates in respect of: the fair value of tangible assets, and investment properties shown at fair value. The trustees have determined that any differences arising between actual amounts realised upon sale and fair value estimates will have no impact on the Circuit’s ability to continue as a going concern.
## xiii Tangible fxed assets
These are capitalised if they can be used for more than one year, and individually cost at least £500.
The freehold and/or long leasehold residential property is shown in the accounts at fair value determined by the trustees based on market value research. The land component is not recognised in these figures. No depreciation is provided on the residential properties because the trustees consider the current residual fair value of the manse buildings (on the assumption that it had reached the end of its useful economic life by the year-end) to be not less than its current value. Any depreciation would not be material. The residential properties have been reviewed for impairment.
## xiv (a) Investment Propertes
Investment property, which is property held to earn rentals and/or for capital appreciation, is measured using the fair value model and stated at its fair value at the reporting end date. The surplus or deficit on revaluation is recognised in net income/(expenditure) for the year.
From time to time the Circuit may hold residential property (formerly manses) which is surplus to its normal staffing requirements. When the intention is to hold the property for capital appreciation or its rental income, the property is classified as investment property and carried at fair value.
Churches which are closed are transferred into the care of the Circuit from the Methodist Church and are valued at a deemed cost based on the
## xiv (b) Investments
The Circuit's investments are in monetary assets classified as basic financial instruments under FRS102 and 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 arising on investments are shown in the SOFA.
## xv Debtors and Prepayments
Debtors are stated at the amounts owed to the Circuit or prepaid.
15
## Blackpool and South Fylde Methodist Circuit Notes to the Accounts for the Year Ended 31 August 2023
## xvi Creditors and Accruals
Creditors are initially recognised at settlement amount after any trade discounts, or the amount advanced to the Circuit. Creditors include both sundry expenses and specifically the 1st quarter assessment received in August.
## xvii Ministers’ manse costs
The Circuit is required to provide accommodation for each minister in the Circuit and their families and this is seen as a benefit to the Circuit. Ministers are expected to occupy the manse provided for them. The Circuit bears the cost of repairs, maintenance, buildings insurance, Council Tax and water charges. These figures are not separately disclosed as benefits-in-kind for ministers as HMRC does not seek to tax these receipts in the hands of minsters.
## 2. Merger details
As at 1[st] September 2022, the Blackpool Methodist Circuit transferred its assets and liabilities to South Fylde Methodist Circuit (Registered Charity No. 1134142), establishing the newly named Blackpool and South Fylde Methodist Circuit. Blackpool Methodist Circuit ceased to exist at the end of 2021-22 (31[st] August 2022).
Both Blackpool Circuit and South Fylde Circuit previously prepared their 2021-22 accounts using the receipts and payments method, and therefore these 2021-22 figures have been restated using the accruals basis.
Analysis of previous SoFA and Balance Sheet components for the previous reportng period (year ending 31 August 2022)
||**Blackpool**
**(receipts &**
**payments)**|**South Fylde**
**(receipts &**
**payments)**|**Blackpool**
**Adjustment**
**for**
**transition**
**to accruals**
**basis**|**South Fylde**
**adjustment**
**for**
**transition**
**to accruals**
**basis**|**Combined**
**total**|
|---|---|---|---|---|---|
||£|£|£|£|£|
|Total income|63,929|182,753|(5,000)|(27,663)|214,019|
|Total expenditure|146,649|237,686|-|(12,543)|(371,792)|
|Net income/(expenditure)|(82,720)|(54,933)|(5,000)|(15,120)|(157,773)|
|Transfers|(696)|-|-|-|(696)|
|Net movement in funds|(83,416)|(54,933)|(5,000)|(15,120)|(158,469)|
|Total funds brought forward|220,830|171,048|||391,878|
|**Total funds carried forward**|**137,414**|**116,115**|**(5,000)**|**(15,120)**|**233,409**|
|Tangible fixed assets|760,000|1,135,000|-|-|1,895,000|
|Current assets|137,414|116,115||27,393|280,922|
|Current liabilities|-|-|(5,000)|(42,513)|(47,513)|
|**Net current assets**|**137,414**|**116,115**|**-**|**-**|**233,409**|
|**Net Assets**|**897,414**|**1,251,115**|**(5,000)**|**(15,120)**|**2,128,409**|
|**Total unrestricted funds**|**897,414**|**1,251,115**|**(5,000)**|**(15,120)**|**2,128,409**|
16
Blackpool and South Fylde Methodist Circuit Notes to the Accounts for the Year Ended 31 August 2023
## 3. Capital Receipts
Two properties were sold during 2022-23. Capital receipts relate to the sale of the closed Lindale Methodist church (net £168,839), and closed Marton Methodist Church (net £170,203). All sales of Methodist property are subject to a levy by the Connexion calculated on a sliding scale based on the gross sale price. The figure is shown net of this CPF Levy.
||**General Fund**
**(Unrestricted)**|**Circuit Model**
**Trust**
**(Unrestricted)**|**Designated**
**Funds**
**(unrestricted)**|**Restricted**
**Funds**|**Total**
**2022-23**|
|---|---|---|---|---|---|
||£|£|£|£|£|
|Gross sale (Lindale Church)||241,371|||241,371|
|CPF Levy on Lindale Church sale||(72,532)|||(72,532)|
|Gross sale (Marton Church)||243,672|||243,672|
|CPF Levy on Marton Church sale||(73,469)|||(73,469)|
|**Total**||**339,042**|||**339,042**|
## 4. Staf Costs
|**Staff Costs paid during the year were:**
£|**Ministers**
**(trustees)**|**Lay staff**|**2022/23**|**2021/22**|
|---|---|---|---|---|
||£|£|£|£|
|Stipends, salaries and benefits in kind|114,475|23,465|**137,940**|**135,808**|
|Social security costs|10,835|746|**11,581**|**32,245**|
|Pension costs|28,975||**28,975**|**11,754**|
|Apprenticeship levy|526|122|**648**|**679**|
|Total staff costs|154,811|24,333|**179,144**|**180,486**|
||||||
|Expenses (Travel, accommodation and other expenses incurred in the
normal course of employment)|10,298|2,893|**13,191**|**10,751**|
||||||
|Average number of full-time equivalent employees in the year were:|4|2|**6**|**6**|
No employee received remuneration amounting to more than £60,000 in either year.
Wages and salary costs includes £nil in respect of redundancy payments in 2023 (2022: £nil).
## 5. Trustees’ remuneraton and expenses
|5. Trustees’ remuneraton and expenses|||
|---|---|---|
||2022/23
£|2021/22
£|
|Payments made to trustees for additonal services provided to the
Circuit byagreement with the Circuit Meetng|0|0|
|Number of trustees who werepaid expenses relatngto trustee dutes|0|0|
|Total amountpaid|0|0|
|There were no trustees' remuneraton or other benefts for the year ended 31 August 2023 or the year ended 31 August
2022 other than thatpaid to ministers and laystaf in the normal course of their dutes and disclosed above.|||
17
Blackpool and South Fylde Methodist Circuit Notes to the Accounts for the Year Ended 31 August 2023
## 6. Fees for examinaton or audit of the accounts
|6. Fees for examinaton or audit of the accounts|||
|---|---|---|
||2022/23
£|2021/22
£|
|Independent examiner’s or auditors' fees for reportng on the
accounts|1,700|-|
|Other fees (eg: advice, accountancy services) paid to the independent
examiner or auditor|-|-|
|Total|1,700|-|
## 7. Property Disposals/Revaluatons
The net gains or losses are detailed below. During the year and in accordance with note 1.xiii (Tangible fixed assets) the residential properties and closed churches have been revalued to fair value determined by the trustees.
||Details|2021-22
Carrying
Value|Sale|2022-23 Carrying
Value/Revaluaton|Gain/(loss)|
|---|---|---|---|---|---|
|||£|£|£|£|
||Mereside church|100,000||100,000|-|
||Kirkham – unrealised|300,000||489,000|189,000|
||Bromley– unrealised|270,000||367,000|97,000|
||Knowles – unrealised|230,000||315,000|85,000|
||The Serentne – unrealised|335,000||507,000|172,000|
||Holgate – unrealised|330,000||358,000|28,000|
||Heron’s Way- unrealised|330,000||454,000|124,000|
||Total|1,895,000|-|2,590,000|695,000|
18
Blackpool and South Fylde Methodist Circuit Notes to the Accounts for the Year Ended 31 August 2023
## 8. Fixed Assets (and Investment Propertes)
|**Fair value**
Balance brought forward
Additions
Revaluations (+/-)
Disposals (-)
Transfers * (+/-)
Balance carried forward
**Accumulated depreciation**
Balance brought forward
Depreciation charge for year
(-)
Revaluations (+/-)
Disposals (-)
Transfers* (+/-)
Balance carried forward
Brought forward
Carried forward|**Manses**
**occupied**
**by**
**ministers**
**£**|**Manses**
**(held as**
**investment**
**properties)**
**£**|**Closed**
**Churches**
**(held as**
**investment**
**properties)**
**£**|**Total**
**£**|
|---|---|---|---|---|
||||||
||860,000|935,000|100,000|1,895,000|
||||||
||398,000|297,000|-|695,000|
||||||
||||||
||1,258,000|1,232,000|100,000|2,590,000|
||||||
||0|0|0|0|
|||||0|
|||||0|
|||||0|
|||||0|
||0|0|0|0|
||||||
||860,000|935,000|100,000|1,895,000|
||1,258,000|1,232,000|100,000|2,590,000|
The fair value of the manses includes the land on which they are built, and their internal contents.
## 9. Analysis of debtors
||Due within one year|2022/23
£|2021/22
£|
|---|---|---|---|
||Trade debtors|14,989|14,850|
||Prepayments|10,778|12,543|
||Total|25,767|27,393|
19
Blackpool and South Fylde Methodist Circuit Notes to the Accounts for the Year Ended 31 August 2023
## 10. Analysis of creditors
|Amounts failing due within one year|2022/23
£|2021/22
£|
|---|---|---|
|Other creditors|1,700|-|
|Prepaid Assessments|42,513|47,513|
|Total|44,213|47,513|
## 11. Detailed analysis of individual fund movements
## Unrestricted Funds
|**Unrestricted**
**Fund Name**|**Opening**
**Balance**|**Incoming**
**Resources**|**Resources**
**Expended**|**Transfers &**
**Reclassification**|
**Gain/(losses)**|**Closing**
**Balance**|**Purpose of**
**the fund**|
|---|---|---|---|---|---|---|---|
|||||||||
|General|1,990,562|287,696|(293,280)|1,000|695,000|2,680,978|The general purposes
of the Circuit|
|Model Trust
Fund|137,847|348,817|(38,966)|-|-|447,698|Support for the mission
of the Circuit|
|Totals|2,128,409|636,513|(332,246)|1,000|695,000|3,128,676||
## Restricted Funds
|**Restricted**
**Fund**
**Name**|**Opening**
**Balance**|**Incoming**
**Resources**|**Resources**
**Expended**|**Transfers**|
**Closing**
**Balance**|**Purpose of**
**the fund**|
|---|---|---|---|---|---|---|
|Wesley
Grant|0|15,955|(11,954)|(1,000)|3,001|Grant given for the Wesley’s
café outreach|
|Totals|**0**|**15,955**|**(11,954)**|**(1,000)**|**3,001**||
## 12. Analysis of net assets between funds
Fund balances at 31 August 2023 are represented by:
||**General Fund**
**(Unrestricted)**|**Circuit Model**
**Trust**
**(Unrestricted)**|**Designated**
**Funds**
**(unrestricted)**|**Restricted**
**Funds**|**Total**
**2022-23**|
|---|---|---|---|---|---|
||£|£|£|£|£|
|Tangible fixed assets|2,590,000||||**2,590,000**|
|Current assets|135,191|447,698||3,001|**585,890**|
|Current liabilities|(44,213)||||**(44,213)**|
|**Total**|**2,680,978**|**447,698**||**3,001**|**3,131,677**|
## 13. Related party transactons
During the year the Circuit received assessment income totalling £229,914 (2022: £169,353) from the various churches within the Circuit.
The Circuit also incurred assessment costs of £40,178 (2022: £48,417) payable to the District.
20
Blackpool and South Fylde Methodist Circuit Notes to the Accounts for the Year Ended 31 August 2023
The Circuit received salary reimbursements from the District totalling £24,718 (2022: £13,620).
The Circuit paid salary charges to the District totalling £24,333 (2022: £12,493).
21
## Report of the Independent Examiners To the Trustees of Blackpool and South Fylde Methodist Circuit
I report to the charity trustees on my examination of the accounts of Blackpool and South Fylde Methodist Circuit for the year ended 31[st] August 2023 which are set out on pages 7 – 19.
## Responsibilites and basis of report
As the Charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## Independent examiner's statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that in any material respect:
1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Leanne Nield ACA Arc Accountancy Solutions Limited 51 Laverton Road Lytham St. Annes Lancashire FY8 1EN
Date: ...........................................
22