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2021-08-31-accounts

SANKEY VALLEY METHODIST CIRCUIT (18/13)

TRUSTEES ANNUAL REPORT and FINANCIAL STATEMENTS FOR YEAR ENDED 31[st] AUGUST 2021

Charity Number 1134227

SANKEY VALLEY METHODIST CIRCUIT

TRUSTEES ANNUAL REPORT & FINANCIAL STATEMENTS

YEAR ENDED 31[st] AUGUST 2021

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CONTENTS PAGE
Trustees annual report 1
Our purposes and activities 1
Achievements and performance 2
Financial Review 2
Plans for Future Periods 4
Reference and Administrative Details 4
Structure, Governance and Management 5
Trustees responsibilities relating the financial statements 6
Statement as to disclosure to our Auditor 6
Auditor’s report to the Trustees 7
Statement of Financial Activities 10
Balance Sheet 11
Notes to the Financial Statements 13
Appendix A: List of Trustees 26
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SANKEY VALLEY METHODIST CIRCUIT

TRUSTEES ANNUAL REPORT

YEAR ENDED 31[st] AUGUST 2021

The Trustees have pleasure in presenting their report and the financial statements of the Charity for the year ended 31st August 2021.

OUR PURPOSES AND ACTIVITIES

The Circuit's aim is to advance the Christian faith in accordance with the doctrinal standards and discipline of The Methodist Church for the benefit of the public. We confirm that the Trustees had regard to the Charity Commission’s guidance on public benefit, and, specifically, the guidance relating to charities for the advancement of religion.

The calling of the Methodist Church is to respond to the Gospel of God’s love in Christ and to live out its discipleship in worship and mission. It does this through worship, learning and caring service and evangelism

The Mission plan of the Sankey Valley Circuit (as agreed by the February 2020 Circuit Meeting) is to respond to this calling by seeking to inspire, encourage, equip and enable the local churches to be disciples, grow disciples and make disciples of Jesus Christ.:

To develop this mission we:

Safeguarding

The Trustees of the Circuit recognise that the safety of children, young people and vulnerable adults is paramount.

The Circuit has a robust safeguarding policy in place and each of the Methodist Churches within the Circuit have approved and adopted a safeguarding policy. These policies apply to trustees, staff and volunteers and provide a commitment to safe recruitment, selection and vetting. The Circuit’s policy is reviewed annually and the last review was by the Circuit Meeting on 16[th] June 2021.

Page 1

SANKEY VALLEY METHODIST CIRCUIT

TRUSTEES ANNUAL REPORT

YEAR ENDED 31[st] AUGUST 2021

ACHIEVEMENTS AND PERFORMANCE

The year was again greatly influenced by the global Covid-19 pandemic. The start of the year saw a return to worship in church buildings. However, further periods of restrictions followed in early 2021. Churches were able to return to worship in person for Easter 2021. Churches continued to be challenged to look at new ways of providing worship services virtually but also providing fellowship and spiritual support for those without access to online content. Periods of lockdown also challenged churches to support community projects to provide help and fellowship to those people isolating.

Staffing levels have continued to present challenges for the circuit. We are grateful to our presbyters for their willingness to take on additional responsibilities. The circuit continues to look to provide training opportunities for Local Preachers and Worship Leaders.

Other key achievements in the year have been:

FINANCIAL REVIEW

Overall there was a net deficit for the year of £382,000, compared to a deficit of £32,000 in 2019/20.

The Circuit Model Trust Fund (an Unrestricted Designated Fund), had a deficit of £52,000. This arose due to the costs (£83,000) of one deacons in the Circuit and the District levy of £4,200 for its Advance Fund.

On the Circuit’s General Fund there was a deficit of £93,250. This was a greater deficit than the revised April 21 budget of a deficit of £66,000. The main reason for the difference was the expenses dealing with the 3 churches that ceased to worship in t he year.

.

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SANKEY VALLEY METHODIST CIRCUIT

TRUSTEES ANNUAL REPORT

YEAR ENDED 31[st] AUGUST 2021

Principal Funding Resources

The principal ongoing funding source of the Charity were the assessments of £406,000 paid by the Circuit’s churches towards the Charity's operating costs for the year.

Investment Policy and Performance

Under Methodist Standing Orders the proceeds from the sale of manses and chapels must be invested with the Trustees for Methodist Church Purposes. Other funds not immediately required are deposited with the Central Finance Board of the Methodist Church.

Reserves Policy

The Trustees consider that an appropriate level of General Reserve to provide an adequate working balance would be between three and four and a half months costs, which equates to between £125,000 and £187,000 based on the 2020/21 accounts expenditure.

As at the 31 August 2021, the General Fund balance (excluding Fixed Assets) was £159,000. Of this sum, there is a commitment to offset £5,000 from previous year surpluses against future church assessments. This leaves £154,000 as an uncommitted reserve, which falls well inside the agreed parameters.

In addition, the Circuit held £1,151,000 in Designated Funds as at 31 August 2021 after excluding the Revaluation Reserve. The purpose of these funds is set out in Note 23 to the Financial Statements.

Collaborative arrangements with connected charities

The members of the Circuit Meeting are the trustees of the Jackson Trust, a registered charity (No. 505907) whose object is to make gifts to those deemed deserving or in need of help who are on the community role of those Circuit Churches which were part of the former Warrington Circuit. The Circuit appoints three individual Managing Trustees to look after the day to day running of the Trust and to make decisions relating to grant approvals. During 2020/21, the Trust made £1,398 in grants. As at 31[st] August 2021, the Trust had cash balances of £20,283, and held investments valued at £95,139.

Three trustees of the Circuit are trustees of the Fred Pendlebury Trust (FPT) [Charity Reg. No. 242863] by virtue of the post they hold within the Circuit, with the remaining two trustees being the Mayor of Warrington and Chair of Stockton Heath Parish Council. There is currently a need for a new trustee from the Circuit to take one of the Trust positions. The FPT’s object is to assist either generally or individually persons of 50 years of age or over who were born or are resident in the Warrington area who are in conditions of need, hardship or distress by offering grants to cover the costs of items such as kitchen appliances and domestic furnishings. In 2020/21, the FPT gave grants of £19,729 and at 31 August 2021 held investment funds valued at £1,168,000.

As their trustees do not act under the direction of the Circuit Meeting, the above charities do not meet the definition for consolidation as set out in the Charity SORP 2005.

Going Concern Basis

The Trustees confirm that there is a reasonable expectation that the Charity will continue to receive contributions from the Circuit churches and can therefore continue in operational existence. Accordingly, the going concern basis has been adopted in preparing the Circuit's financial statements.

Page 3

SANKEY VALLEY METHODIST CIRCUIT

TRUSTEES ANNUAL REPORT

YEAR ENDED 31[st] AUGUST 2021

PLANS FOR FUTURE PERIODS

Our plans for the coming year include:

REFERENCE AND ADMINISTRATIVE DETAILS

Registered charity name Sankey Valley Methodist Circuit (the Charity / the Circuit) Charity registration number 1134227 Principal Office Circuit Resource Centre 1st Floor, Bold Street Mission Palmyra Square Warrington WA1 1JQ 01925 652228 www.sankeyvalleymethodists.org.uk

Trustees

The Trustees who comprised the Circuit Leadership Team during the year were:

Ministers: Revd D Easton (Superintendent)

Revd M Coles Deacon H Coleman Revd L Bishop Revd M Harwood Rev M Wood Deacon J Hudson (to 31 December)

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SANKEY VALLEY METHODIST CIRCUIT

TRUSTEES ANNUAL REPORT

YEAR ENDED 31[st] AUGUST 2021

Circuit Stewards : Mrs M Reeve (Senior) Mr A Rogers (Treasurer) Mr G Pegg (Oversight/Governance) Revd I Musgrove Mrs S Francis Mrs V Palmer

The names of all those who served as Trustees of the Charity for all or part of the year or were Trustees at the date that this report was adopted are listed in Appendix A.

Auditors: Proud Goulbourn, Chartered Accountants 608 Liverpool Road Irlam Manchester M44 5AA

Bankers: Cooperative Bank Plc Central Finance Board of Methodist Church PO Box 250 9 Bonhill Street Skelmersdale WN8 6WT London EC2A 4PE

Custodian Trustees Trustees for Methodist Church Purposes Central Buildings Oldham Street Manchester M1 5JQ Solicitors Tickle Hall Cross Carlton Chambers 25 Hardshaw Street St Helens WA10 1RP

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Circuit is part of the Liverpool District of the Methodist Church of Great Britain. Each district, circuit and Methodist church whilst being a separate charity is governed by the Deed of Union 1932, Methodist Church Act 1932 and by the Methodist Church's Standing Orders. Local Ecumenical Partnerships each have their own Constitution or Sharing Agreement

At the end of the year, the Circuit comprises 20 Methodist churches, a Methodist/United Reform Ecumenical Partnership, and a Methodist/United Reform shared church.

The Circuit pays the Methodist ministers and lay employees who support its churches and acts as managing trustees for the ministers' manses.

The decision making body is the Circuit Meeting who are its Trustees. During the year, the Circuit Meeting was made up of the Circuit Ministers, those Supernumerary ministers who wished to be a trustee, the Circuit Stewards, other Circuit Officials appointed by the Circuit Meeting, Church Treasurers (or an alternative person approved by the Circuit Meeting), a Church Steward and one elected representative from each Church.

The decisions of the Circuit Meeting are implemented through a Circuit Leadership Team, which has appointed a number of other committees responsible for specific areas of work. The Circuit Leadership Team is developing procedures for the consideration of the risks that face the Circuit and the steps that can be taken to mitigate these risks. Robust procedures are in place in respect of safeguarding children and vulnerable adults.

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SANKEY VALLEY METHODIST CIRCUIT

TRUSTEES ANNUAL REPORT

YEAR ENDED 31[st] AUGUST 2021

RESPONSIBILITIES OF THE TRUSTEES

The Charity's Trustees are responsible for preparing the Trustees Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011 and the Charity (Accounts and Reports) Regulations 2008. The Trustees are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE TO OUR AUDITOR

Each of the persons who is a trustee at the date of approval of this report confirms that:

APPOINTMENT OF AUDITOR

The Circuit appointed Proud Goulbourn as its Auditor for a period of three years from 2019/20.

Signed on behalf of the Trustees

Superintendent Minister of the Sankey Valley Methodist Circuit 20 June 2022

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SANKEY VALLEY METHODIST CIRCUIT

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF SANKEY VALLEY METHODIST CIRCUIT

YEAR ENDED 31[st] AUGUST 2021

We have audited the financial statements of Sankey Valley Methodist Circuit (the ‘Charity’) for the year ended 31st August 2021 which comprise the Statement of Financial Activities, the Balance Sheet, Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report1, other than the financial statements and our auditors’ report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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SANKEY VALLEY METHODIST CIRCUIT

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF SANKEY VALLEY METHODIST CIRCUIT

YEAR ENDED 31[st] AUGUST 2021

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement set out on page 6 the trustees are responsible for the preparation of financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, 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 concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011and report in accordance with regulations made under section 154 of that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: ww.frc.org.ukjauditorsresponsibilities. This description forms part of our auditor’s report.

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SANKEY VALLEY METHODIST CIRCUIT

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF SANKEY VALLEY METHODIST CIRCUIT

YEAR ENDED 31[st] AUGUST 2021

Use of our Report

This report is made 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 required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Signed Date 20[th] June 2022 Proud Goulbourn 608, Liverpool Road, Irlam Chartered Accountants & Manchester Statutory Auditors M44 5AA

Proud Goulbourn Chartered Accountants & Statutory Auditors

Page 9

SANKEY VALLEY METHODIST CIRCUIT

STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31[st] AUGUST 2021

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Notes Unrestricted Restricted Total Previous
Funds Funds Funds Year
£ £ £ £
Income from:
Donations 3 1,403 617 2,020 91,272
Charitable activities 4 358,160 - 358,160 419,632
Trading activities 5 35,863 - 35,863 26,763
Investments 6 2.860 45 2.905 7,638
Other 7 9,729 - 9,729, -
Total Income 408,015 662 408,677 545,305
Expenditure on:
Raising funds 8 16,807 - 16,807 5,158
Charitable activities 9-14 562,606 1,324 563,931 563,744
Other 15 27,455 - 27,455 8,487
Total Expenditure 606,868 1,324 608,192 577,389
Net income / (expenditure) before transfers 16 (198,853) (662) (199,515) (32,084)
Transfers between funds 24 45 (45) - -
Net income/ (expenditure) before other gains
(198,808) (707) (195,515) (32,084)
& losses
Other recognised gains / (losses)):
Gains / (Losses) on investment assets 369 - 369 (36)
Gains / (Losses) on fixed assets for Charity's
(183,196) - ( 183,196) -
own use
Net movement in funds (381,634) (708) (382,341) (32,120)
Total Funds brought forward 5,389,533 33,965 5,423,498 5,455,618
Total funds carried forward 5,007,899 33,258 5,041,156 5,423,498
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Page 10

SANKEY VALLEY METHODIST CIRCUIT

BALANCE SHEET

AS AT 31[st] AUGUST 2021

Notes
FIXED ASSETS
Tangible assets
17
Investments
CURRENT ASSETS
Debtors
18
Cash at bank and in hand
19
CREDITORS: Amounts falling due
within one year
20
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
REPRESENTED BY:
Restricted Funds
22
Unrestricted Funds:
Designated funds
23
Other unrestricted funds
23
TOTAL FUNDS		 Total Funds 2020/21
£
£
3,696,777
2,381
3,699,158
22,640
1,415,500
1,438,639
96,641
1,341,998
5,041,156
5,041,156
33,258
3,076,594
1,931,305
5,007,899
5,041,156		 Total Funds 2019/20
£
£
4,493,085
2,012
4,495,097
25,169
963,495
988,664
60,263
928,401
5,423,498
5,423,498
33,965
2,987,075
2,402,457
5,389,533		 Total Funds 2019/20
£
£
4,493,085
2,012
4,495,097
25,169
963,495
988,664
60,263
928,401
5,423,498
5,423,498
33,965
2,987,075
2,402,457
5,389,533
22,640
1,415,500		 25,169
963,495
1,438,639
96,641		 988,664
60,263
3,076,594
1,931,305		 2,987,075
2,402,457
5,423,498
5,423,498
33,965
5,389,533
5,423,498

These financial statements were approved by the Circuit Meeting at their meeting held on the 20 June 2022 and are signed on their behalf by:

The Revd A Moffoot (Superintendent Minister)

The notes on pages 13 to 25 form part of these financial statements

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SANKEY VALLEY METHODIST CIRCUIT

STATEMENT OF CASH FLOWS

FOR YEAR ENDED 31[st] AUGUST 2021

Cash flows from operating activities:
Net cash provided by (used in) operating activities (See Note 28)
Cash flows from investing activities
Interest from investments
Sale of investments
Purchase of property
Net cash provided by (used in ) investing activities
Cash flows from financing activities
Change in cash and cash equivalents in reporting period
Cash and cash equivalents at beginning of reporting period
Cash and cash equivalents at end of reporting period		 Total Funds
£
(345,400)
2,905
795,000
-
797,905
-
452,505
963,495
1,416,000		 Previous Year
Funds
£
(102,479)
7,638
-
-
7,638
-
(94,841)
1,058,337
963,495

Page 12

SANKEY VALLEY METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS

AS AT 31[st] AUGUST 2021

1. BASIS OF PREPARATION

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 (as updated through Update Bulletin 1 published on 2 February 2016), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, and UK Generally Accepted Accounting Practice.

The Circuit meets the definition of a public benefit entity under FRS 102.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £1.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

The charity adopted SORP (FRS 102) in the current year. None of the figures are required to be restated on transition to FRS 102.

2. Summary of significant accounting policies

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

b) Income recognition

Items of income are recognised and included in the accounts when all of the following criteria are met:

c) Expenditure recognition

Expenditure is recognised as soon as there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Project grants made by the Circuit are recognised in full when approved by the Trustees and, in the case of property projects, any requisite District and/or Connexional approval has been obtained. In addition, there must be certainty that the project as approved will proceed and that the amount approved will be drawn down

As the Circuit is not able to recover Value Added Tax (VAT), any VAT payable is charged with the expenses to which it refers.

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SANKEY VALLEY METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS

AS AT 31[st] AUGUST 2021

d) Support costs allocation

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and allocated in accordance with Ministerial and staff time.

The analysis of these costs is included in note 10.

e) Tangible Fixed Assets

The Circuit’s manses were valued at October 2019 using professional valuations. No depreciation is provided on these buildings because the Trustees consider the current residual fair values (on the assumption that they had reached the end of their useful economic life by the year-end) to be not less than the current valuations. The properties have been reviewed for impairment.

The Community building is included at cost and is not depreciated. It has been reviewed for impairment.

Furniture and Equipment for manses or other Circuit property costing over £1,000 is capitalised with depreciation being calculated on a 10% straight line basis so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset.

On the closure of Methodist churches, the Circuit Meeting generally becomes the managing trustees for the property. Where the Circuit Meeting resolves to sell the property, it is not treated as a Fixed Asset and the net proceeds of sale are included in the accounts as “Other Income” on receipt of the funds.

f) Investments

The investments of the Circuit are held by the Trustees for Methodist Church Purposes (TMCP) as custodian trustees. The valuations, at market value, are those provided by TMCP. The unrealised gains arising on investments at the year-end are shown in the Statement of Financial Activities.

g) Debtors and creditors; bank and cash

Debtors are stated at the amounts owed to the Circuit or prepaid. Creditors that are current liabilities are measured at the cash or other consideration expected to be paid. The liquid funds of bank balances and deposit account balances are shown at the realisable values.

h) Concessionary loans

Where concessionary loans (i.e. free of interest) are made by the Circuit to further its charitable purposes, and are repayable after more than one year, they are initially recognised at the amount paid, with the carrying value adjusted in subsequent years to reflect repayments, adjusted for any impairment, if necessary.

i) Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset’s cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

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SANKEY VALLEY METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS

AS AT 31[st] AUGUST 2021

3.
Donations and legacies
4.
Income from charitable activities
Donations to Charity Fund
Donations to Children/YP Fund
Donations to Mission (UR) Fund
Donations to General Fund
Total
Church assessments
Letting of community centre and rooms
Printing recharges
Other income
Total		 2020/21
Un-Restricted
Funds
Restricted
Funds
Total Funds
£
-
617
617
-
-
1,403
-
1,403
1,403
617
2,020
349,462
-
349,462
5,576
-
5,576
1,318
-
1,318
1,804
-
1,804
358,160
-
358,160		 2019/20
Total Funds
£
965
5,490
83,617
1,200
91,272
405,770
10,586
1,608
1,668
419,632

5. Other trading activities

This comprised rents from 3 manses which were temporarily surplus to requirements.

6. Investment income

This comprised interest and dividends on monies on deposit with the Central Finance Board and invested with Trustees for Methodist Church Purposes.

7.
Other income
8.
Expenditure on raising funds
Sale of Property – Expenses Refund
Closed Churches
Total
Management cost on let manses
Investment management costs
Total		 2020/21
Un-Restricted
Funds
Restricted
Funds
Total Funds
£
£
£
7,514
-
7,514
2,215
-
2,215
9,729
-
9,729
15,892
-
15,892
915
-
915
16,807
-
16,807		 2019/20
Total Funds
£
-
-
-
4,282
876
5,158

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SANKEY VALLEY METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS

AS AT 31[st] AUGUST 2021

9. Analysis of Charitable Activities

2020/21
Ministerial pay & expenses
Non-Admin Lay staff pay & expenses
Connexional / District Assessments
Grants & Donations
Other property expenses
Other costs
Governance costs (See Note 10)
Support costs (See Note 10)
Totals		 Ministry
Mission
Fresh
Expressions
Total
2019/20
£
£
£
£
140,403
66,915
15,187
222,504
-
2,549
-
2,549
61,216
36,220
6,777
104,213
-
17,723
-
17,723
-
41,404
-
41,404
10,781
6,379
1,193
18,353
17,838
14,377
1,945
34,160
64,242
51,778
7,004
103,025
294,480
237,345
32,106
563,931

Ministerial & Lay staff pay costs have been allocated based on assessed time spent on activities; other costs allocated direct where practical, otherwise pro rata to staff costs.

Of the £563,931 expenditure in 2019/20, £562,606 was charged to Unrestricted Funds and £1,324 to Restricted Funds.

2019/20
Ministerial pay & expenses
Non-Admin Lay staff pay & expenses
Connexional / District Assessments
Grants & Donations
Other property expenses
Other costs
Governance costs (See Note 10)
Support costs (See Note 10)
Totals		 Ministry
Mission
Fresh
Expressions
Total
2018/19
£
£
£
£
141,059
95,666
15,256
251,981
-
2,586
-
2,586
57,717
34,150
6,390
98,256
-
15,835
-
15,835
-
12,212
-
12,212
27,793
16,444
3,077
47,314
18,225
14,229
1,989
34,443
53,505
41,774
5,838
101,117
298,299
232,896
32,549
563,744

Of the £563,744 expenditure in 2019/20, £559,232 was charged to Unrestricted Funds and £4,512 to Restricted Funds.

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SANKEY VALLEY METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS

AS AT 31[st] AUGUST 2021

10. Analysis of Governance and Support Costs

----- Start of picture text -----
|||||| |---|---|---|---|---| |2020/21|Allocation Basis| |£|£|£| |Ministerial pay & expenses|6,169|12,022|18,191|Ministerial time| |Admin Lay staff pay & expenses|11,410|5,825|17,235|Lay staff time| |Manse costs|96,054|5,055|101,110|Ministerial time| |Connexional / District Assessments|6,362|6,570|12,932|Staff time| |Circuit Resource Centre|1,909|337|2,246|Staff time| |Audit fee|-|3,194|3,194|Governance| |Other costs|1,120|1,157|2,277|Staff time| |Totals|123,025|34,160|157,185| |2019/20|Allocation Basis| |£|£|£| |Ministerial pay & expenses|6,197|12,077|18,274|Ministerial time| |Admin Lay staff pay & expenses|11,507|5,869|17,376|Lay staff time| |Manse costs|72,349|3,808|76,157|Ministerial time| |Connexional / District Assessments|5,998|6,194|12,192|Staff time| |Circuit Resource Centre|2,178|384|2,562|Staff time| |Audit fee|-|3,128|3,128|Governance| |Other costs|2,888|2,983|5,871|Staff time| |Totals|101,117|34,443|135,560| |2020/21|2019/20| |£|£| |11.|Paid Employees| |Stipends, Salaries, Employers National Insurance & Pension Costs| |Gross Stipends/Salaries|181,696|196,077| |Social security costs|15,487|16,703| |Other pensions costs|43,790|47,674| |240,973|260,454|

----- End of picture text -----

Page 17

SANKEY VALLEY METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS

AS AT 31[st] AUGUST 2021

2021 2020
£ £

Particulars of employees:

The average number of employees during the year, calculated as full-time equivalents, was:

No. No.
Number of ministers 6.33 7
Number of administrative staff 2 2

No employee received remuneration of more than £60,000 during the year (2019/20 - Nil). There is no accrual for holiday pay for the lay staff as it is immaterial.

12. Pensions

Most ordained presbyters and deacons are members of the Methodist Ministers' Pension Scheme, a funded defined benefit scheme maintained by the Methodist Church of Great Britain. Each circuit is required to contribute to the scheme for its ministers whether or not they choose to join the scheme. Contributions in 2020/21 were 9.3% for ministers and 26.9% of standard stipend for the Circuit.

The assets of the pension scheme are held separately from those of the Circuit in independently administered funds. The actuaries are of the opinion that it is not possible to identify on a consistent and reasonable basis, the share of the underlying assets and liabilities of the scheme attributable to the Circuit. As such, it is accounted for as a defined contribution scheme under FRS102.

The Circuit's lay employees are eligible to join a defined contribution scheme established by The Pensions Trust which provides pensions for charities and not for profit and voluntary organisations on standard terms negotiated by the Methodist Church of Great Britain. Contributions to this scheme are 6% of salary for lay employees and 6% for the Circuit. Eligible lay employees (i.e. those earning over £10,000 a year) were subject to auto enrolment into a pension scheme from 1 May 2016.

13. Trustee remuneration and expenses

Included within Charitable Activities is the remuneration of Circuit ministers who under Methodist Standing Orders are ex officio members of the Circuit Meeting and therefore trustees of the charity. The other trustee receiving remuneration was the Circuit Safeguarding Officer..

Expenses paid to trustees comprised travel/telephone costs to Circuit Ministers, travel costs to Circuit Stewards and Lay Preachers who were trustees, and preaching fees/travel costs to Circuit Supernumerary Ministers who were trustees. The number of trustees receiving expenses and the total paid were:

2020/21 2019/20
Number of trustees who were paid expenses 9 8
Total amount paid 18,926 28,582

Page 18

SANKEY VALLEY METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS

AS AT 31[st] AUGUST 2021

2021
£
14.
Grants and Donations
Grants & Donations paid (Unrestricted Funds):
Church Building Projects_(Grants)_
4,700
Church Mission Projects (Grants)
33,327
Connexional Funds & Charities (Donations)
2,053
Donations paid (Restricted Funds):
Circuit Charities (Papyrus / Epiphany Trust)
1,324
Total
41,404
15.
Other expenditure
2020/21
Un-Restricted
Funds
Restricted
Funds
Total Funds
£
£
£
District Advance Fund levy on Circuit
Model Trust Fund
4,244
-
4,224
Manse Selling Costs
7,117
-
7,117
Closed Churches – Management Costs
16,094
-
16,094
27,455
-
27,455
16.
Net Income / (Expenditure) for year
This is stated after charging:
Depreciation
1,308
Audit fee
3,194
2020/21
£		 2021
£
14.
Grants and Donations
Grants & Donations paid (Unrestricted Funds):
Church Building Projects_(Grants)_
4,700
Church Mission Projects (Grants)
33,327
Connexional Funds & Charities (Donations)
2,053
Donations paid (Restricted Funds):
Circuit Charities (Papyrus / Epiphany Trust)
1,324
Total
41,404
15.
Other expenditure
2020/21
Un-Restricted
Funds
Restricted
Funds
Total Funds
£
£
£
District Advance Fund levy on Circuit
Model Trust Fund
4,244
-
4,224
Manse Selling Costs
7,117
-
7,117
Closed Churches – Management Costs
16,094
-
16,094
27,455
-
27,455
16.
Net Income / (Expenditure) for year
This is stated after charging:
Depreciation
1,308
Audit fee
3,194
2020/21
£		 2020
£
2,500
3,200
2,000
4,512
12,212
2019/20
Total Funds
£
7,557
930
-
8,487
1,454
3,128
2019/20
£
27,455
-
27,455
1,308
3,194
2020/21
£

Page 19

SANKEY VALLEY METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS

AS AT 31[st] AUGUST 2021

17. Tangible Fixed Assets

Cost or valuation
At 1 September 2020
Disposals
Revaluations in year
As at 31 August 2021
Depreciation
At 1 September 2020
Charge for year
As at 31 August 2021
Net Book Value
At 31 August 2020
At 31 August 2021		 Land &
Buildings -
Manses
Land &
Buildings –
Community
Centres
Fixtures &
Fittings
Total
£
£
£
£
4,200,000
280,000
36,344
4,516,344
(795,000)
(795,000)
-
-
-
-
3,405,000
280,000
36,344
3,721,344
-
-
23,259
23,259
-
-
1,308
1,308
-
-
24,567
24,567
4,200,000
280,000
13,085
4,493,085
3,405,000
280,000
11,777
3,696,777

Land and buildings consist of freehold properties (£3,160,000) and a long leasehold property (£525,000).

On the sale of a manse where the proceeds are not being applied to a replacement project, a levy is payable under Methodist Standing Orders to the Connexional Priority Fund of 20% on the first £100,000 and 40% on the balance. As at 31 August 2020, the amount payable on the sale of all the manses would be £1,202,000.

the manses would be £1,202,000.
18.
Debtors and prepayments
Loans to Circuit churches
Prepayments
Other Debtors
Total
19.
Cash at bank and in hand
Trustees for Methodist Church Purposes (Interest Funds)
Central Finance Board (Deposit Account)
Co-operative Bank (Current Account)
Cash in Hand		 2020/21
£
2,000
19,635
1,005
22,640
974,599
400,180
41,199
22
1,416,000		 2019/20
£
2,000
22,335
834
25,169
455,598
454,795
53,065
37
963,495

Page 20

SANKEY VALLEY METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS

AS AT 31[st] AUGUST 2021

20. Creditors and accruals

Amounts falling due within one year.
Receipts in advance
Other Creditors
Agency Collections
Total		 85,242
11,828
(428)
96,641		 53,039
8,105
(881)
60,263

21. Capital commitment

The Circuit had no capital commitments at 31 August 2021. (Previous year Nil)

Movement in Restricted Funds
2020/21 Balance
1 Sep 20		 Incoming
Resources		 Outgoing
Resources		 Transfers Balance
31 Aug 21
£ £ £ £ £
Charity Fund 1,023 617 (1,324) - 316
Fresh Expressions 32,942 45 - (45) 32,942
33,965 662 (1,324) (45) 33,258
2019/20 Balance
1 Sep 19		 Incoming
Resources		 Outgoing
Resources		 Transfers Balance
31 Aug 20
£ £ £ £ £
Charity Fund 4,570 965 (4,512) - 1,023
Fresh Expressions 32,942 234 - (234) 32,942
37,512 1,199 (4,512) (225) 33,965

22. Movement in Restricted Funds

Purposes of Restricted Income Funds

Charity Fund - Monies received for the benefit of the Circuit’s nominated charity.

Fresh Expressions - This fund holds the monies transferred to the custody of the Circuit in 2008 by Deed of Appointment from the Withinshaw Trust. The monies are lodged with the Central Finance Board and the Circuit Meeting has agreed that they should be "Restricted", with the interest being transferred each year to the Fresh Expressions Unrestricted Income Fund (see Note below).

Page 21

SANKEY VALLEY METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS

AS AT 31[st] AUGUST 2021

23. Movement in Unrestricted Funds

Gains & Gains &
2020/21 Balance Incoming Outgoing Transfers Losses /
Jpurnal		 Balance
1 Sep 19 Resources Resources Entries 31 Aug 21
£ £ £ £ £ £
Designated Funds:
Children & Youth 9,356 - (2,298) 2,000 - 9,058
Circuit Model Trust 227,071 1,339 (54,044) 606,804 369 781,540
Fresh Expressions 3,635 - - 45 - 3,680
Local Preacher Fund 2,034 - - - - 2,034
Manse Maintenance 40,000 - - - - 40,000
Mission Fund 350,389 1,010 (34,029) - - 317,371
Nutgrove Comm. Centre 10,858 50577 (18,155) - - (1,720)
Revaluation Reserve 2,343,731 - - (419,100) - 1,924,631
2,987,075 7,926 (108,526) 189,749 369 3,076,594
General Funds:
Fixed Assets 2,149,354 - (1,308) (192,704) (183,196) 1,772,147
Other 253,103 400,089 (497,034) 3,000 - 159,158
2,402,457 400,089 (498,342) (189,704) (186,196) 1,931,305
5,389,533 408,015 (606,868) 45 (182,826) 5,007,899
2019/20 Balance Incoming Outgoing Transfers Gains & Balance
1 Sep 19 Resources Resources Losses 31 Aug 20
Designated Funds: £ £ £ £ £ £
Children & Youth 11,989 5,490 (10,123) 2,000 - 9,356
Circuit Model Trust 315,755 1,724 (91,372) 1,000 (36) 227,071
Fresh Expressions 4,401 - (1,000) 234 - 3,635
Local Preacher Fund 2,109 - (75) - - 2,034
Manse Maintenance 40,000 - - - - 40,000
Mission Fund 267,132 86,119 (2,862) - - 350,389
Nutgrove Comm. Centre 23,398 10,616 (17,156) (6,000) - 10,858
Revaluation Reserve 2,343,731 - - - - 2,343,731
3,008,515 103,950 (122,588) (2,766) (36) 2,987,075
General Funds:
Fixed Assets 2,150,808 - (1,454) - - 2,149,354
Other 258,783 440,156 (448,835) 3,000 - 253,103
2,409,591 440,156 (450,289) 3,000 - 2,402,457
5,418,106 544,106 (572,877) 234 (36) 5,389,533

Page 22

SANKEY VALLEY METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS

AS AT 31[st] AUGUST 2021

Purposes of Designated Unrestricted Income Funds:

Local Preacher Fund – This comprises monies from three bequests and is to be used for providing training grants to Local Preachers. The Bridge Bequest was previously a Restricted Income Fund while the other two bequests were previously part of the General Fund.

Children and Youth - This fund holds monies allocated by the Circuit Meeting for work amongst children and young people of the Circuit.

Circuit Model Trust Fund – This fund receives the proceeds of sale of manses and churches and is used to fund property and mission projects approved by the Trustees subject to rules set by the Methodist Connexion.

Fresh Expressions - This fund holds monies allocated by the Circuit Meeting to help develop “fresh ways of being church”.

Manse Maintenance - This fund holds unspent budget monies from previous years which are to be made available to the Property Stewards in future years for major cyclical repairs. No transfer was made in 2019/20 as the level of the fund was considered adequate.

Mission Fund – This comprises monies received from church’s trustees on the closure of churches and from other Methodist funds which were previously treated as Restricted, which the Trustees have agreed to be designated for Mission initiatives.

Nutgrove Community Centre – This fund holds the balance of income received after paying out operational expenses, which Trustees have agreed should be held to meet future maintenance and to contribute towards the cost of Deacon working in the Nutgrove community.

Revaluation Reserve – In accordance with FRS15 this Fund was credited with gains on the revaluation of functional fixed assets in 2012 over and above the cost price.

24. Transfers between funds

The reasons for the transfers between funds were as follows:

From Fund To Fund Reason Amount
Circuit Model Trust General Allocation of rent from
proceeds of sold manse		 £5,000
Fresh Expressions
{Restricted}		 Fresh Expressions
{Unrestricted}		 Interest received £45
General Children & Youth Annual allocation agreed by
Circuit Meeting		 £2,000
General CMTF Manse Sale Proceeds £611,804
Revaluation Reserve General Manse Sale 419,100

Page 23

SANKEY VALLEY METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS

AS AT 31[st] AUGUST 2021

25. Analysis of net assets between funds

----- Start of picture text -----
Unrestricted Restricted
2019/20 Total
Funds Funds
£ £ £
Tangible Fixed Assets 3,696,777 - 3,696,777
Investments 2,381 - 2,381
Net Current Assets 1,308,612 33,258 1,341,870
5,007,771 33,258 5,041,028
Unrestricted Restricted
2019/20 Total
Funds Funds
£ £ £
Tangible Fixed Assets 4,493,085 - 4,493,085
Investments 2,012 - 2,012
Net Current Assets 894,436 33,965 928,401
5,389,533 33,965 5,423,498
26. Transactions with related parties
Related Party Description of transaction 2019/20 2018/19
Income: £ £
Assessments to fund Circuit
Circuit Churches 349,642 405,770
Operating costs
Circuit Churches Repayment of loan instalment 2,000 2,000
Pendlebury Trust Contribution to admin costs 1,320 1,320
Jackson Trust Contribution to admin costs 100 -
Expenditure:
Circuit Churches Grants 38,027 5,700
Liverpool District District & Connexion costs 117,144 110,448
Liverpool District Advance Fund Levy on Model Trust Fund 4,244 7,557
Methodist Connexional Funds Circuit Donations 2,000 2,000
----- End of picture text -----

Page 24

SANKEY VALLEY METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS

AS AT 31[st] AUGUST 2021

27. Taxation

The Circuit is a registered charity and is entitled to claim annual exemption from UK corporation tax to the extent that income and gains are applicable and applied to charitable purposes only.

28. Reconciliation of net income / (expenditure) to net cash flow from operating activities

Net income / (expenditure) for the year(as per
Statement of Financial Activities)
Adjustments for:
Depreciation charges
Interest from investments
Loss / (Profit) on sale of fixed assets
(Increase) / Decrease in Debtors
Increase / (Decrease) in Creditors
Net Cash provided by (used in) Operating
Activities		 (199,643)
1,308
(2,905)
(183,196)
5,529
36,506
(345,400)
2020/21
£		 (32,084)
1,454
(7,638)
-
(631)
(63,580)
2019/20
£
(102,479)

Page 25

SANKEY VALLEY METHODIST CIRCUIT

APPENDIX A: LIST OF TRUSTEES

The following persons served as a Trustee of the Circuit for all or part of the financial year.

Ministers stationed in the Circuit:

Revd David Easton Revd L Bishop Deacon Helen Coleman

Revd M Coles Deacon Julie Hudson (to 31[st] December 2020) Revd M Harwood Revd M Wood

Other Ministers:

Revd Malcolm Fife (URC)

Circuit Stewards:

Mrs M Reeve Mr G Pegg (Governance/Circuit Meeting Secretary) Mr A Rogers (Treasurer) Revd I Musgrove Mrs S Francis Mrs V Palmer From 16 June 2021

Mr G Pegg (Governance/Circuit Meeting Secretary)
Mr A Rogers (Treasurer)
Revd I Musgrove
Mrs S Francis
Mrs V Palmer		 From 16 June 2021
upernumerary ministers:
Revd I Musgrove
Deacon T Luke
ther Circuit Officers:
Mr G Dutton (Trusts) To 9 September 2021
Ms L Locke (Safeguarding Officer)
Miss D MacGregor (Synod representative)
Mr S Myers (Nutgrove Methodist Voluntary Aided School)
Mrs Sue Rigby (Trusts)
Mr Wayne Hudson (Synod representative)
Mrs J Otterson (LP Meeting Secretray)		 To 31 December 2020
hurch Steward Representative
Mr R Pitchfork (Antrobus) To 9 September 2021
Ms K Ahearne (Cronton)
Mr E Andrews (St Martins, Woolston)
Mr D Bill (Wesley, St. Helens)		 To 9 September 2021
Miss M Duff (Cross Lane United)
Mrs J Dunning (St. Philip’s, Westbrook)
Mrs A Taylor (Prescot & Whiston)		 To 9 September 2021
Mr J Galsworthy (Latchford)
Mrs D Shopland (Lymm)
Ms Y Hedgecock (Trinity, Widnes)
Mr I Howarth (New Song Network) To 16 June 2021
Mrs B Hitchen (Nutgrove)
Mrs M Jackson (Hood Manor)
Mrs V Barber (St James, Rainhill)
Mrs V Palmer (Stockton Heath) To 9 September 2021
Miss A Lewis (Sutton)
Dr S Longworth (Farnworth)
Mr P Ogden (Rixton)

Supernumerary ministers:

Other Circuit Officers:

Church Steward Representative

Page 26

SANKEY VALLEY METHODIST CIRCUIT

APPENDIX A: LIST OF TRUSTEES

Ms S Spibey (Heath Street, Golborne) Mrs D Scapens (Ashton) Mrs G Stanton (Bold Street, Warrington) Mrs B Creamer (Penketh) Mrs R Bowden (Burtonwood) Mrs C Sherratt (Padgate))

From 9 September 2021

)

Church Finance Representative

Mr T Bradshaw (Heath Street, Golborne) Mr D Bargh (St James, Rainhill) Mr G Roberts (Padgate) Mrs C Caldwell (New Song Network) Mr J Crossley (Nutgrove) Mr L Dunning (St Philip’s, Westbrook) Ms J Foster (Cronton) Ms K Hillis (Latchford) Mr J D Humbles (Stockton Heath) Mr K Long (St Martins, Woolston) Mr D Makin (Farnworth) Mr K Marsh (Burtonwood) Mr R Quinn (Trinity, Widnes) Mr I Rayner (Penketh) Mrs B Scahill (Prescot & Whiston) Mrs M Simpson (Cross Lane United) Mrs P Thompson (Sutton) Mrs G Tomkins (Wesley, St Helens) Mrs J Woods (Ashton) Mr G Pegg (Lymm) Mr P Wilkinson (Antrobus) Mr I Wright (Rixton) Mr C Stanton (Bold Street, Warrington)

To 16 June 2021

Church Elected Representative

Mrs G Longs (St. Martins, Woolston) Mrs J Birkett (Nutgrove) Ms A Bolshaw (Antrobus) Mr M Cuthbert (Bold Street, Warrington) Mrs M Davies (St. James, Rainhill) Mrs G Dickinson (Heath Street, Golborne) Dr B Fisher (Farnworth) Mrs A Harrison (Prescot & Whiston) Mrs P Lee (Cronton) Mrs C Dorling (Wesley, St Helens) Mr D Myers (Sutton) Mrs J Sampson (Rixton) Mrs C Ralston (St Philips, Westbrook) Mrs J Ormand (Latchford) Mr B Powney (Penketh) Mr J Williams (Burtonwood) Mr T Rhodes (Padgate) Mrs C Smith (Trinity, Widnes) Mrs J Smith (Ashton) Mrs A Squires (New Song Network) Dr J Woodthorpe (Lymm) Mrs A Eggboro (Stockton Heath) Mr B Williams (Cross Lane United)

To 16 June 2021

Page 27