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<br>Trustees annual report     1<br>Our purposes and activities     1<br>Achievements and performance    2<br>Financial Review    2<br>Plans for Future Periods    4<br>Reference and Administrative Details    4<br>Structure, Governance and Management    5<br>Trustees responsibilities relating the financial statements    6<br>Statement as to disclosure to our Auditor    6<br>Auditor’s report to the Trustees     7<br>Statement of Financial Activities    10<br>Balance Sheet    11<br>Notes to the Financial Statements 13<br>Appendix A:  List of Trustees      26<br>**----- End of picture text -----**<br>





## 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: 

- ➢ Encourage and challenge churches to fulfil their calling locally (local growth / mission plans) 

- ➢ Support churches as they seek to do things in new ways. 

- ➢ Stand alongside areas where fragile work should be sustained. 

- ➢ Employ presbyters and deacons to provide pastoral support to all those who are linked to the Methodist churches in the Circuit and to facilitate mission opportunities; 

- ➢ Provide Lay Employees to support our ministers and assist in the mission of our churches. ➢ Produce a quarterly preaching plan to ensure regular acts of worship take place at the Methodist churches within the Circuit. 

- ➢ Find and share expertise wherever we can. 

- ➢ Provide learning and development opportunities with appropriate resources 

- ➢ Support the Nutgrove Methodist Aided Primary School . 

## 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. 

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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: 

- The Circuit churches choosing Epiphany Trust as their nominated charity for the year. The charity focuses on helping young people who are often out of the public eye and so often struggle for support – the disabled and disadvantaged.. 

- Financial support given to churches to enable live streaming of services and events. 

- Continued  Circuit-wide conversations on the Conference report “God in love unites us”, focussing on marriage and relationships – move for Church Councils to discuss support, or otherwise, of same sex marriage 

- The recognition of Local Preachers, Sue Francis and Judith McNicholas 

- Reviewing growth church strategies as churches return to use of their buildings and return to meeting together. 

- Selling three of the vacant manses in the property portfolio to enable support of the Circuit’s mission. 

- The Deacons working ecumenically in St Helens and Prescot and developing relationships with Nutgrove Methodist Aided Primary school. 


## 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. 

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SANKEY VALLEY METHODIST CIRCUIT 

## TRUSTEES ANNUAL REPORT 

## YEAR ENDED 31[st] AUGUST 2021 

## PLANS FOR FUTURE PERIODS 

Our plans for the coming year include: 

- A review with District of the Circuit Mission plan and the work that Circuit is focussing on. 

- The continued development of Children & Youth work responding to 3Generate initiatives. Circuit looking at party of children attending a day at the 3Gen event in October 2021 

- The Circuit churches supporting Epiphany Trust as their nominated charity for the year. The charity provides life changing support to children and young people throughout the world. 

- Holding a Circuit Leadership team away day to look at Circuit strategy, use of resources and oversight // trusteeship. This in the light of not being successful in stationing for 2022/23 and moving to a ministerial team of 4 presbyters and 1 deacon. 

- Re-developing the Circuit website, 

- A review of the criteria for the use of the money held within the Model Trust Funds 

- Supporting the Connexion Pension Reserve Fund appeal. 

- Provision of grants to churches to allow receipt of live streamed worship and other missional activities. Churches will be encouraged to fully explore the use of technology in their mission. 

- A review of strategic use for Wesley Methodist Church for mission, Deacon Helen Coleman working with ecumenical partners in St Helens 


## 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: 

- select suitable accounting policies and then apply them consistently. 

- observe the methods and principles in the Charities SORP. 

- make judgements and estimates that are reasonable and prudent. 


- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements. 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. 

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: 

- so far as each trustee is aware, there is no relevant audit information of which the charity's auditor is unaware; and 

- each trustee has taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. 

## 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: 

- give a true and fair view of the state of the charity’s affairs as at 31[st] August 2021, and of its incoming resources and application of resources for the year then ended: 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice: 

- have been prepared in accordance with the requirements of the Charities Act 2011. 

## 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: 

- the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate: or 

- the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. 

## 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: 

- the  information given  in the  financial statements is inconsistent in  any material respect with  the trustees' report; or 

- sufficient accounting records have not been kept; or 

- the financial statements are not in agreement with the accounting records; or 

- we have not received all the information and explanations we require for our audit. 

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


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## SANKEY VALLEY METHODIST CIRCUIT 

## BALANCE SHEET 

## AS AT 31[st] AUGUST 2021 

|Notes<br>FIXED ASSETS<br>Tangible assets<br>17<br>Investments<br>CURRENT ASSETS<br>Debtors<br>18<br>Cash at bank and in hand<br>19<br>CREDITORS: Amounts falling due<br>within one year<br>20<br>NET CURRENT ASSETS<br>TOTAL ASSETS  LESS  CURRENT LIABILITIES<br>NET ASSETS<br>REPRESENTED BY:<br>Restricted Funds<br>22<br>Unrestricted Funds:<br>Designated funds<br>23<br>Other unrestricted funds<br>23<br>TOTAL FUNDS|Total Funds 2020/21<br>£<br>£<br>3,696,777<br>2,381<br>3,699,158<br>22,640<br>1,415,500<br>1,438,639<br>96,641<br>1,341,998<br>5,041,156<br>5,041,156<br>33,258<br>3,076,594<br>1,931,305<br>5,007,899<br>5,041,156|Total Funds 2019/20<br>£<br>£<br>4,493,085<br>2,012<br>4,495,097<br>25,169<br>963,495<br>988,664<br>60,263<br>928,401<br>5,423,498<br>5,423,498<br>33,965<br>2,987,075<br>2,402,457<br>5,389,533|Total Funds 2019/20<br>£<br>£<br>4,493,085<br>2,012<br>4,495,097<br>25,169<br>963,495<br>988,664<br>60,263<br>928,401<br>5,423,498<br>5,423,498<br>33,965<br>2,987,075<br>2,402,457<br>5,389,533|
|---|---|---|---|
||22,640<br>1,415,500|25,169<br>963,495||
||1,438,639<br>96,641|988,664<br>60,263||
||3,076,594<br>1,931,305|2,987,075<br>2,402,457||
||||5,423,498|
||||5,423,498|
||||33,965<br>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:<br>_Net cash provided by (used in) operating activities (See Note 28)_<br>Cash flows from investing activities<br>Interest from investments<br>Sale of investments<br>Purchase of property<br>_Net cash provided by (used in ) investing activities_<br>Cash flows from financing activities<br>Change in cash and cash equivalents in   reporting period<br>Cash and cash equivalents at beginning of reporting period<br>Cash and cash equivalents at end of reporting period|Total Funds<br>£<br>(345,400)<br>2,905<br>795,000<br>-<br>797,905<br>-<br>452,505<br>963,495<br>1,416,000|Previous Year<br>Funds<br>£<br>(102,479)|
|---|---|---|
|||7,638<br>-<br>-|
|||7,638|
|||-<br>(94,841)<br>1,058,337|
|||963,495|
||||




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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** 

- **a)** Funds 


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: 

- The charity has entitlement to the funds; 

- Any performance  conditions  attached  to the items of income have been met or are fully within the control of the charity; 

- There is sufficient certainty that receipt of the income is considered probable; and 

- The amount can be measured reliably. 

## 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. 

Page 14 



## SANKEY VALLEY METHODIST CIRCUIT 

## NOTES TO THE FINANCIAL STATEMENTS 

## AS AT 31[st] AUGUST 2021 

|3.<br>Donations and legacies<br>4.<br>Income from charitable activities<br>Donations to Charity Fund<br>Donations to Children/YP Fund<br>Donations to Mission (UR) Fund<br>Donations to General Fund<br>Total<br>Church assessments<br>Letting of community centre and rooms<br>Printing recharges<br>Other income<br>Total|2020/21<br>Un-Restricted<br>Funds<br>Restricted<br>Funds<br>Total Funds<br>£<br>-<br>617<br>617<br>-<br>-<br>1,403<br>-<br>1,403<br>1,403<br>617<br>2,020<br>349,462<br>-<br>349,462<br>5,576<br>-<br>5,576<br>1,318<br>-<br>1,318<br>1,804<br>-<br>1,804<br>358,160<br>-<br>358,160|2019/20<br>Total Funds<br>£<br>965<br>5,490<br>83,617<br>1,200|
|---|---|---|
|||91,272|
|||405,770<br>10,586<br>1,608<br>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.<br>Other income<br>8.<br>Expenditure on raising funds<br>Sale of Property – Expenses Refund<br>Closed Churches<br>Total<br>Management cost on let manses<br>Investment management costs<br>Total|2020/21<br>Un-Restricted<br>Funds<br>Restricted<br>Funds<br>Total Funds<br>£<br>£<br>£<br>7,514<br>-<br>7,514<br>2,215<br>-<br>2,215<br>9,729<br>-<br>9,729<br>15,892<br>-<br>15,892<br>915<br>-<br>915<br>16,807<br>-<br>16,807|2019/20<br>Total Funds<br>£<br>-<br>-|
|---|---|---|
|||-|
|||4,282<br>876|
|||5,158|



Page 15 



SANKEY VALLEY METHODIST CIRCUIT 

## NOTES TO THE FINANCIAL STATEMENTS 

## AS AT 31[st] AUGUST 2021 

## 9. Analysis of Charitable Activities 

|2020/21<br>Ministerial pay & expenses<br>Non-Admin Lay staff pay & expenses<br>Connexional / District Assessments<br>Grants & Donations<br>Other property expenses<br>Other costs<br>Governance costs (See Note 10)<br>Support costs (See Note 10)<br>Totals|Ministry<br>Mission<br>Fresh<br>Expressions<br>Total<br>2019/20<br>£<br>£<br>£<br>£<br>140,403<br>66,915<br>15,187<br>222,504<br>-<br>2,549<br>-<br>2,549<br>61,216<br>36,220<br>6,777<br>104,213<br>-<br>17,723<br>-<br>17,723<br>-<br>41,404<br>-<br>41,404<br>10,781<br>6,379<br>1,193<br>18,353<br>17,838<br>14,377<br>1,945<br>**34,160**<br>64,242<br>51,778<br>7,004<br>**103,025**<br>**294,480**<br>**237,345**<br>**32,106**<br>**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<br>Ministerial pay & expenses<br>Non-Admin Lay staff pay & expenses<br>Connexional / District Assessments<br>Grants & Donations<br>Other property expenses<br>Other costs<br>Governance costs (See Note 10)<br>Support costs (See Note 10)<br>Totals|Ministry<br>Mission<br>Fresh<br>Expressions<br>Total<br>2018/19<br>£<br>£<br>£<br>£<br>141,059<br>95,666<br>15,256<br>251,981<br>-<br>2,586<br>-<br>2,586<br>57,717<br>34,150<br>6,390<br>98,256<br>-<br>15,835<br>-<br>15,835<br>-<br>12,212<br>-<br>12,212<br>27,793<br>16,444<br>3,077<br>47,314<br>18,225<br>14,229<br>1,989<br>**34,443**<br>53,505<br>41,774<br>5,838<br>**101,117**|
|---|---|
||**298,299**<br>**232,896**<br>**32,549**<br>**563,744**|



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

Page 16 



## 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 -----**<br>
||||||
|---|---|---|---|---|
|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 -----**<br>


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



Page 19 



## SANKEY VALLEY METHODIST CIRCUIT 

## NOTES TO THE FINANCIAL STATEMENTS 

## AS AT 31[st] AUGUST 2021 

## 17. Tangible Fixed Assets 

|Cost or valuation<br>At 1 September 2020<br>Disposals<br>Revaluations in year<br>As at 31 August 2021<br>Depreciation<br>At 1 September 2020<br>Charge for year<br>As at 31 August 2021<br>Net Book Value<br>At 31 August 2020<br>At 31 August 2021|Land &<br>Buildings -<br>Manses<br>Land &<br>Buildings –<br>Community<br>Centres<br>Fixtures &<br>Fittings<br>Total<br>£<br>£<br>£<br>£<br>4,200,000<br>280,000<br>36,344<br>4,516,344<br>(795,000)<br>(795,000)<br>-<br>-<br>-<br>-|
|---|---|
||3,405,000<br>280,000<br>36,344<br>3,721,344|
||-<br>-<br>23,259<br>23,259<br>-<br>-<br>1,308<br>1,308|
||-<br>-<br>24,567<br>24,567|
||4,200,000<br>280,000<br>13,085<br>4,493,085|
||3,405,000<br>280,000<br>11,777<br>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.<br>Debtors and prepayments<br>Loans to Circuit churches<br>Prepayments<br>Other Debtors<br>Total<br>19.<br>Cash at bank and in hand<br>Trustees for Methodist Church Purposes (Interest Funds)<br>Central Finance Board (Deposit Account)<br>Co-operative Bank (Current Account)<br>Cash in Hand|2020/21<br>£<br>2,000<br>19,635<br>1,005<br>22,640<br>974,599<br>400,180<br>41,199<br>22<br>1,416,000|2019/20<br>£<br>2,000<br>22,335<br>834<br>25,169<br>455,598<br>454,795<br>53,065<br>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._<br>Receipts in advance<br>Other Creditors<br>Agency Collections<br>Total|85,242<br>11,828<br>(428)<br>96,641|53,039<br>8,105<br>(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<br>1 Sep 20|Incoming<br>Resources|Outgoing<br>Resources|Transfers|Balance<br>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<br>1 Sep 19|Incoming<br>Resources|Outgoing<br>Resources|Transfers|Balance<br>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 /<br>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<br>proceeds of sold manse|£5,000|
|Fresh Expressions<br>{Restricted}|Fresh Expressions<br>{Unrestricted}|Interest received|£45|
|General|Children & Youth|Annual allocation agreed by<br>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 -----**<br>
Unrestricted  Restricted<br>2019/20  Total<br>Funds  Funds<br>£  £  £<br>Tangible Fixed Assets  3,696,777       -  3,696,777<br>Investments  2,381       -  2,381<br>Net Current Assets  1,308,612  33,258  1,341,870<br>5,007,771  33,258  5,041,028<br>Unrestricted  Restricted<br>2019/20  Total<br>Funds  Funds<br>£  £  £<br>Tangible Fixed Assets  4,493,085       -  4,493,085<br>Investments  2,012       -  2,012<br>Net Current Assets  894,436  33,965  928,401<br>5,389,533  33,965  5,423,498<br>26.  Transactions with related parties<br>Related Party Description of transaction 2019/20  2018/19<br>Income: £  £<br>Assessments to fund Circuit<br>Circuit Churches  349,642  405,770<br>Operating costs<br>Circuit Churches  Repayment of loan instalment  2,000  2,000<br>Pendlebury Trust  Contribution to admin costs  1,320  1,320<br>Jackson Trust  Contribution to admin costs  100  -<br>Expenditure:<br>Circuit Churches  Grants  38,027  5,700<br>Liverpool District  District & Connexion costs  117,144  110,448<br>Liverpool District Advance Fund  Levy on Model Trust Fund  4,244  7,557<br>Methodist Connexional Funds  Circuit Donations  2,000  2,000<br>**----- End of picture text -----**<br>


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<br>Statement of Financial Activities)<br>Adjustments for:<br>Depreciation charges<br>Interest from investments<br>Loss / (Profit) on sale of fixed assets<br>(Increase) / Decrease in Debtors<br>Increase / (Decrease) in Creditors<br>Net Cash provided by (used in) Operating<br>Activities|(199,643)<br>1,308<br>(2,905)<br>(183,196)<br>5,529<br>36,506<br>(345,400)<br>2020/21<br>£|(32,084)<br>1,454<br>(7,638)<br>-<br>(631)<br>(63,580)<br>2019/20<br>£|
|---|---|---|
|||(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)<br>Mr A Rogers (Treasurer)<br>Revd I Musgrove<br>Mrs S Francis<br>Mrs V Palmer|From 16 June 2021|
|---|---|
|_upernumerary ministers:_||
|Revd I Musgrove||
|Deacon T Luke<br>_ther Circuit Officers:_||
|Mr G Dutton (Trusts)|To 9 September 2021|
|Ms L Locke (Safeguarding Officer)||
|Miss D MacGregor (Synod representative)<br>Mr S Myers (Nutgrove Methodist Voluntary Aided School)<br>Mrs Sue Rigby (Trusts)||
|Mr Wayne Hudson (Synod representative)<br>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)<br>Mr D Bill (Wesley, St. Helens)|To 9 September 2021|
|Miss M Duff (Cross Lane United)<br>Mrs J Dunning (St. Philip’s, Westbrook)<br>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_ 

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## 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