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2023-08-31-accounts

REGISTERED CHARITY NUMBER: 1134584

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31[ST] AUGUST 2023

FOR

THE LANCASHIRE DISTRICT OF THE METHODIST CHURCH IN GREAT BRITAIN

THE LANCASHIRE DISTRICT OF THE METHODIST CHURCH IN GREAT BRITAIN

CONTENTS OF THE FINANCIAL STATEMENTS For the Year Ended 31[st] August 2023

Page Reference and Administrative Details 1 Report of the Trustees 2 - 5 Independent Examiner’s Report 6 Statement of Financial Activities 7 Balance Sheet 8 Notes to the Financial Statements 9 - 20 Detailed Statement of Financial Activities 21

THE LANCASHIRE DISTRICT OF THE METHODIST CHURCH IN GREAT BRITAIN REFERENCE AND ADMINISTRATIVE DETAILS

For the Year Ended 31st August 2023

TRUSTEES

TRUSTEES Rev W Hunter Rev S Smith Rev A L Makin Rev B Pet Mr B Riley (Treasurer) – resigned 31[st] August 2023 Rev K Hilsden Rev S Wild Mr D Leach Miss M Dugdale Mr C Fairclough Mr G Kay Rev P Gough (Chairman) Mr R Hailwood Rev R Ormrod Mrs C Hothersall Dr P Lumsden Mr P Gorst Mr R Matthews (Treasurer) – appointed 1[st] September 2023 PRINCIPAL ADDRESS 523 Blackpool Road Ashton On Ribble Preston Lancashire PR2 1EQ REGISTERED CHARITY NUMBER 1134584 INDEPENDENT EXAMINER Arc Accountancy Solutions Limited 51 Laverton Road Lytham St. Annes Lancashire FY8 1EN BANKERS Natwest Bank PLC 24 St. Annes Road West Lytham St. Annes Lancashire FY8 1HR INVESTMENT MANAGERS Trustees for Methodist Church Purposes

1

THE LANCASHIRE DISTRICT OF THE METHODIST CHURCH IN GREAT BRITAIN REPORT OF THE TRUSTEES

For the Year Ended 31st August 2023

The trustees present their report with the financial statements of the charity for the year ended 31[st] August 2023. The trustees have adopted the provisions of 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) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The purposes of the Methodist Church are and shall be deemed to have been since the Date of Union the advancement of:

(a) The Christian faith in accordance with the doctrinal standards and the discipline of the Methodist Church; (b) Any charitable purpose for the time being of any Connexional, District, Circuit, local or other organisation of the Methodist Church;

(c) Any charitable purpose for the time being of any society or institution subsidiary or ancillary to The Methodist Church;

(d) Any purpose for the time being of any charity being a charity subsidiary or ancillary to The Methodist Church.

The District meets in Synod twice a year and in other groupings more regularly. It supports the training of ministers, both presbyteral and diaconal and provides the means for continuing training. The District encourages all in the circuits and churches to have a vision that is greater than the local area. The District employs people to work on its behalf in areas such as chaplaincy, administration, Safeguarding, Property and pastoral work in a variety of contexts.

Public benefit

We confirm the trustees have had regard to the Charity Commission's guidance on public benefit.

ACHIEVEMENT AND PERFORMANCE Charitable activities

The District held Synods in Autumn and Spring, focussing on two of the strands of our Mission Statement, ‘Transforming Lives and Communities’, namely ‘Enrich Communities’ and ‘Engage All’. Our Spring Synod, at the Lune Valley Hub, Brookhouse, in the North Lancashire Circuit was an all day Synod, with workshops throughout the afternoon exploring our work towards equality, diversity and inclusion.

During the year, the Lancashire District joined with Cumbria, Liverpool and Bolton and Stockport Districts in seeking permission to become one united North West England District. Resolutions were passed to this effect, and Methodist Conference approved this process. From 1[st] September 2024 Lancashire District will become part of the new North West England District. Manchester and Stockport District were continuing their discussions regarding whether to join or not.

The District continued to support missional projects in churches and Circuits throughout the year, through its grant making processes.

FINANCIAL REVIEW

Financial position

During 2022/23, the Lancashire District received total income of £429,136 (2021/22: £376,948) and expended £340,050 (2021/22: £298,733). The resulting surplus was increased by an unrealized net gain on investments of £1,584 (2021/22: £17,386 net loss), producing a net surplus of £90,670 across all Funds. The Trustees of the District are confident that the District is a going concern, principally because Circuits continue to meet their Assessments and the District has adequate reserves to cover any shortfall in anticipated income that may arise.

FINANCIAL

Financial position

To comply with the Methodist Standing Orders, monies for long term investments are lodged with the Trustees for Methodist Church Purposes, (TMCP). TMCP acts as custodian trustee for all real estate held by Districts and for all large (over £20k) bequests and for the proceeds of sale of any property formerly owned by the District. These sums are invested in unitised investments or held on deposit. The investment returns are close to tracking the movements in the FTSE 100 index. The deposit income mirrors the deposit rates available elsewhere. The Lancashire District Trustees' investment policy is aligned with that of the CFB and TMCP because these organisations take into consideration the social, environmental and ethical considerations, both negatively and positively, that make investments suitable for the Methodist Church.

Short term deposits are lodged directly with the Central Finance Board, (CFB), and attract good rates of interest.

2

THE LANCASHIRE DISTRICT OF THE METHODIST CHURCH IN GREAT BRITAIN REPORT OF THE TRUSTEES

For the Year Ended 31st August 2023

There are no bench marks for the expected returns or appreciation on investments at TMCP and CFB. It is the District's policy to manage the cash and investment resources of the District so that a rate of return on investment - both by way of dividend and capital appreciation - is obtained at least as good as market rate considering the District's low appetite for risk. The total return achieved in 2022-2023 on Lancashire District's TMCP invested funds was 3.61% for the year.

Reserves policy

All monies are invested with the CFB or TMCP with a certain amount kept in the Current Accounts for week by week expenses. The trustees have agreed a reserves policy for each fund, the key policies relating to the Methodist Church Fund and the General Expenses Fund, as follows:-

The reserves policy for the Methodist Church Fund is to hold a reserve equal to 25% of one quarter's Assessment payments received from the circuits, thereby allowing for late quarterly payments by one or more circuits. The quarterly payments for 2023/24 are £113,051 so the reserve of £12,451 at 31st August 2023 is £15,812 lower than the minimum reserve required of £28,263.

The Reserves Policy for the General Expenses Fund is to hold sufficient in reserve to cover six months’ expenditure, ie £105,745 based on the 2023/24 Forecast. The year-end balance of £117,196 results in an excess of £11,451. This sum is held to fund additional work on the Chairman's manse, including work arising from the quinquennial reviews, and also to minimise the increase in District Assessments for 2023/24.

The Reserves Policy for the District Advance Fund is to ensure that the amount in reserve is always at least equal to the sum of all approved and anticipated grants for the current and future years. At 31st August 2023, the Fund held a balance of £881,585, of which the sum of £52,400 was committed to future grants, leaving £829,185 uncommitted. The District Youth Fund is used to grant fund projects which encourage and develop work with young people across the District and has a similar policy in that the reserve must always be at least equal to the sum of all approved and anticipated grants for the current and future years.

Going concern

The trustees have assessed the charity’s ability to continue as a going concern and concluded the assumption is valid.

FINANCIAL REVIEW

Collaborative arrangements with connected charities

The District’s main source of funding was the assessments obtained from each Circuit within the District based on the staffing levels of the Circuit and this was used to fund most of the cost of administering the District. This sum amounted to £34,281 (2021/22: £47,457). The District also obtained from each Circuit with a reserve, known as a Circuit Model Trust Fund (CMTF), a levy based on the value of each Circuit's CMTF at the start of the Connexional year (01 September). In 2022/23 this sum was £96,973 and this was credited to the District Advance Fund (2021/22: £73,040). The District holds no funds as custodian trustee. It does, however, quarterly receive from Circuits within the District the Circuits’ contributions to the Connexion's Methodist Church Fund (MCF). These sums are collected as agent for the MCF and are passed to the MCF later in the same month as collected. Funds received by the District as agent are not recognised as an asset in the financial statements because the funds are not within its control. No fee is earned in respect of this agency arrangement and the District incurs no cost through this arrangement. A sum of £469,020 (£117,255 per quarter) passed through the District's Methodist Church Fund in 2022/23 (2021/22: £454,583).

FUTURE PLANS

The District plans to continue with Transforming Lives and Communities and to continue to support missional activities across the Lancashire District.

There will be continuing work with others across the North West Region, with neighbouring Districts and through ecumenical partnerships

There will be continuing work with ministerial appointments.

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.

3

THE LANCASHIRE DISTRICT OF THE METHODIST CHURCH IN GREAT BRITAIN REPORT OF THE TRUSTEES

For the Year Ended 31st August 2023

The Lancashire District of the Methodist Church is an unincorporated association and was established by a Deed of Union (1932) and is governed by The Methodist Church Act (1976). It is registered as a charity with the Charity Commission.

Charity constitution and governance

The District operates within a statutory framework of regulation and seeks to ensure that it follows Methodist Standing Orders. It relies on the Connexional Office at 25 Marylebone Road, London NW1 5JR to provide guidance on changes that could affect the District. The members of the District Policy Committee (DPC) are the Trustees of the Lancashire Methodist District.

The members of the DPC are appointed annually by a vote of the Synod for a continuous term not normally exceeding six years. The Chair of District is ex officio chair of the DPC. When a position becomes vacant on the DPC, nominations are invited from ministers and lay members of Circuits within the District. The Chair of the District then shares with nominees what the roles involve. If they wish to be considered for a role, their names and reasoned statements are taken to the DPC and the District Synod for appointment. Members may be either ministers or lay people attending Churches in the area covered by the District.

The DPC normally meets four times per year and deals with routine and exceptional matters. It oversees the work of the Grants Committee, the Nomination Committee for District Chair, the University Chaplain Management Group, the Child Friendly Church Group, the Reconciliation Group, the Complaints Support Group, the Lay Workers Support Group, the Ministers' Development Review Group, the Property Consent Panel, the Property Management Group, the Review Group, the Safeguarding Group, the World Church Links and the Methodist Schools Visitors.

STRUCTURE, GOVERNANCE AND MANAGEMENT Organisational structure

Circuits are the coordinating charities for local groups of Churches; Circuits pay the stipends of the ministers and employ lay staff to serve the Churches in the Circuit; most decisions are made at or ratified by the four-/six-monthly Circuit Meetings. A District is the coordinating charity for a group of contiguous Circuits and makes its decisions at the half yearly Synods. The Methodist Conference meets once each year as the supreme denominational body for all Methodist Churches.

  1. Overall regulatory authority rests with the Methodist Conference.

  2. The Connexional Office implements decisions made by Conference and is also responsible for the stationing of presbyters and deacons (collectively known as ministers) in individual Circuits within the District.

  3. Connexional decisions are passed to the Chair of the District and the appropriate officers of the District for implementation.

  4. The District passes control down to Circuit level for local implementation by the Superintendent Minister, ministerial staff and Circuit Stewards, and authority is delegated to the Circuit Meeting for certain matters. 5. The Circuit Meeting passes regulatory control down to Church Councils for local implementation by the presbyter, the Church Stewards, and other officers, and this regulatory authority is then exercised by Church Councils as Managing Trustees of their charity.

Wider network

The District is an expression, over a wider geographical area than any Circuit, of the Connexional character of the Church.

The purposes of the Methodist Church are and shall be deemed to have been since the date of the union the advancement of:

a. the Christian faith in accordance with the doctrinal standards and the discipline of the Methodist Church, and b. any charitable purpose for the time being of any connexional, District, Circuit, local or other organisation of the Methodist Church, and

c. any charitable purpose for the time being of any society or institution subsidiary or ancillary to the Methodist Church, and

d. any purpose for the time being of any charity being a charity subsidiary or ancillary of the Methodist Church.

The primary purpose of this District is to advance the mission of the Methodist Church in Lancashire: 1. by providing opportunities for Circuits to work together and support each other 2. by offering to Circuits resources of finance, personnel and expertise.

The District serves the Local Churches and Circuits and the Conference in the support, deployment and oversight of the various ministries of the Church, and in programmes of training.

4

THE LANCASHIRE DISTRICT OF THE METHODIST CHURCH IN GREAT BRITAIN REPORT OF THE TRUSTEES

For the Year Ended 31st August 2023

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

The District is largely risk averse, but especially in making grants to entities embarking on new and imaginative initiatives, the District is prepared to underwrite considered risks. The District manages risks by being aware of them, quantifying their impact not only in cost terms but in possible reputational or structural damage , laying them off through an insurer and minimising them by not taking them or by setting up control systems which timeously report any significant change in the risk.

STRUCTURE, GOVERNANCE AND MANAGEMENT Responsibility of the District Policy Committee

(i) to formulate and promote policies which will advance the mission of the Church in the Circuits and Local Churches and, in particular, to supervise the use of resources of personnel, property and finance and to assist Local Churches and Circuits having exceptional problems;

(ii) to encourage inter-Circuit and ecumenical co-operation;

(iii) to act in an executive capacity in matters remitted to the Committee by the Synod;

(iv) to keep within its purview all District concerns not dealt with elsewhere;

(v) to contribute and respond to the development of Connexional policies as reflected in the work of the Conference and the Methodist Council, and to carry out its other responsibilities with any such development in mind;

(vi) to be aware that the stipend of the Chair of the District is set – currently by reference to the change over a year in the Consumer Price Index and to the annual change in the Average Weekly Earnings Index – using a formula that was agreed by the Methodist Conference for all ministers within the Connexion; (vii) constantly to be aware of and to take account of the public benefit guidance issued by the Charity Commission.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees are responsible for preparing the Report of the Trustees 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, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed 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, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They 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.

In addition to the above, the Trustees are responsible for Health & Safety. Training in the responsibilities of Trustees is offered to all new trustees soon after their appointment.

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approved by order of the board of trustees on ……………………. and signed on its behalf by:

==> picture [64 x 31] intentionally omitted <==

Rev P Gough - Chairman – Trustee

5

THE LANCASHIRE DISTRICT OF THE METHODIST CHURCH IN GREAT BRITAIN INDEPENDENT EXAMINER’S REPORT

For the Year Ended 31st August 2023

I report to the charity trustees on my examination of the accounts of The Lancashire District of the Methodist Church in Great Britain (the Trust) for the year ended 31[st] August 2023 which are set out on pages 7 – 21.

Responsibilities and basis of report

As the Charity’s trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the Trust’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of the Institute of Chartered Accountants in England and Wales (ICAEW) which is one of the listed bodies.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

==> picture [93 x 37] intentionally omitted <==

Leanne Nield ACA Arc Accountancy Solutions Limited 51 Laverton Road Lytham St. Annes Lancashire FY8 1EN

Date: ........................................

6

THE LANCASHIRE DISTRICT OF THE METHODIST CHURCH IN GREAT BRITAIN STATEMENT OF FINANCIAL ACTIVITIES

For the Year Ended 31st August 2023

Notes
INCOME AND ENDOWNMENTS FROM
Donatons and legacies
2
Charitable actvites
Church actvites
4
Investment income
3
Other income
5
Total
EXPENDITURE ON
Charitable actvites
6
Ministry
Mission
Administraton
Other
Manses
Total
Net gains/(losses) on investments
NET INCOME/(EXPENDITURE)
Transfer between funds
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD*
Unrestricte
d funds
£
100
294,988
40,023
84,682
419,793
134,637
27,305
157,307
10,313
7,201
336,763
1,584
84,614
-
84,614
1,549,505
1,634,119
Restricted
funds
£
8,303
-
1,040
-
9,343
-
-
3,287
-
-
3,287
-
6,056
-
6,056
40,690
46,746
2023
Total
funds
£
8,403
294,988
41,063
84,682
429,136
134,637
27,305
160,594
10,313
7,201
340,050
1,584
90,670
-
90,670
1,590,195
1,680,865
2022
Total
funds
£
9,303
302,939
8,116
56,590
376,948
121,124
38,970
120,863
1,045
16,731
298,733
(17,386)
60,829
-
60,829
1,529,366
1,590,195

* See note 20 for a prior year adjustment to reclassify comparative funds between unrestricted and restricted funds.

7

THE LANCASHIRE DISTRICT OF THE METHODIST CHURCH IN GREAT BRITAIN BALANCE SHEET

as at 31st August 2023

Notes
FIXED ASSETS
Tangible assets
13
CURRENT ASSETS
Debtors
14
Investments
15
Cash at bank
CREDITORS
Amounts falling due within one year
16
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
FUNDS
17
Unrestricted funds
Restricted funds
TOTAL FUNDS
Unrestricted
funds
£
447,773
5,462
1,047,712
138,029
1,191,203
(4,857)
1,186,346
1,634,119
1,634,119
Restricted
funds
£
-
-
-
46,746
46,746
-
46,746
46,746
46,746
2023
Total
funds
£
447,773
5,462
1,047,712
187,382
1,237,949
(4,857)
1,233,092
1,680,865
1,680,865
1,634,119
46,746
1,680,865
2022
Total
funds*
£
447,773
31,981
888,768
228,837
1,149,586
(7,164)
1,142,422
1,590,420
1,590,195
1,549,505
40,690
1,590,195

* See note 20 for a prior year adjustment to reclassify comparative funds between unrestricted and restricted funds.

The charity was entitled to exemption from audit under s477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for complying with the requirements of the Companies Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared in accordance with the provisions applicable to small companies subject to the small companies regime and in accordance with FRS102 SORP.

The financial statements were approved by the Board of Trustees and authorised for issue on …………………….. and were signed on its behalf by:

==> picture [81 x 32] intentionally omitted <==

Rob Matthews – Trustee/Treasurer

The notes form part of these financial statements

8

THE LANCASHIRE DISTRICT OF THE METHODIST CHURCH IN GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS

For the Year Ended 31st August 2023

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) ‘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) (effective 1 January 2019), and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

Going concern

Based on the monetary assets and human resources available at 31 August 2023, the Trustees believe that the District is a going concern.

Content

The financial information presented is relevant, reliable, comparable and complete. Where estimates are used these are based on experience, research and judgement. The accounts are expressed in £Sterling, rounded to the nearest pound.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Revenue grants are recognised on a systematic basis over the periods in which the charity recognises the related costs for which the grant is intended to compensate.

A grant that becomes receivable as compensation for expenses or losses already incurred, or for the purpose of giving immediate financial support to the company with no future related costs, is recognised in income in the period in which it becomes receivable.

Individual amounts categorised as Other income in the SOFA will be shown separately if they are considered material.

The District acts as agent in three matters:

  1. the collection of quarterly assessments from circuits which are paid to the Methodist Church Fund

  2. the payment of expenses of representatives from the District to the Methodist Conference

  3. the collection taken at the spring synod on behalf of the Methodist Ministers’ Children’s Relief Fund

In all these matters the transactions are not reflected in the SOFA because there is no obligation on the District to make up any shortfall in assessments from Circuits. Sums received as Circuit assessments cannot be recognised as income in the District as they are the income of the MCF.

Volunteers

Every entity (Connexion, District, Circuit, Church) within the Methodist Church in Great Britain is heavily reliant on volunteers who contribute their skills, time and money in the furtherance of the work of the Church. Principally this contribution is by serving on committees of the District that deal with mission, manses, finance, policy, grants, training and development. We are grateful to all of them for their help and commitment. In accordance with the Charities SORP(FRS 102), the time of volunteers is not recognised and so no attempt has been made by this District to value these non-monetary contributions to the District in monetary terms.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probably that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to that category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

9

THE LANCASHIRE DISTRICT OF THE METHODIST CHURCH IN GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS

For the Year Ended 31st August 2023

1. ACCOUNTING POLICIES – continued

Taxation

The charity is exempt from tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

Contributions payable to the charity’s pension scheme are charged to the Statement of Financial Activities in the period to which they related.

Most ordained presbyters and deacons are members of the Methodist Ministers’ Pension Scheme (MMPS). This is a defined benefit scheme. The Supreme Court held in 2014 that Methodist ministers (which term includes presbyters and deacons) are not employees of the Church. For simplicity, however, when dealing with National Insurance Contributions and pension contributions, the term ‘employer’ and ‘employee’ are used as they would be in an employing body.

On the other hand, lay employees are contractually employees and have the option of joining the Pension and Assurance Scheme for Lay Employees of the Methodist Church (PASLEMC), The Pensions Trust or some other arrangement. PASLEMC is a defined benefit scheme and the employing Churches and Circuits contribute as employers to this scheme.

The Connexion accounts for both the MMPS and PASLEMC pension schemes and shows the figures in the annual Methodist Church in Great Britain accounts. The MMPS is in deficit but a plan for removal of the deficit has been proposed and is being implemented. Details of the deficits on these schemes can be found in the Annual Report and Accounts of The Methodist Church at www.methodist.org.uk.

Tangible fixed assets

These are capitalised if they can be used for more than one year, and individually cost at least £1,000. The freehold property is shown in the accounts at 2015 deemed values, of which the land component is deemed to be £111,943. No depreciation is provided on the building because the trustees consider the current residual fair value of the manse buildings to be not less than their current value. Any depreciation would not be material. The property has been reviewed for impairment.

Investments

The investments of the Lancashire District 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 end of the year are shown in the SOFA.

Debtors and creditors; bank and cash

Debtors are stated at the amounts owed to the District or prepaid. Creditors are initially recognised at settlement amount after any trade discounts, where normal credit terms apply, or amount advanced to the District. Subsequently 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.

Methodist Church Fund

Tangible fixed assets

The District acts as agent for the Methodist Church Fund (MCF) by collecting its assessments on Circuits and does not, therefore, include the assessments in the SOFA. If a circuit is late in paying its MCF assessment to the District but such sum is received before the quarterly transfer to the MCF, the amount paid late will be shown as a debtor in the District’s accounts. The sums received and paid during the year are shown in the Connected organisations and related parties note.

10

THE LANCASHIRE DISTRICT OF THE METHODIST CHURCH IN GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS

For the Year Ended 31st August 2023

1. ACCOUNTING POLICIES – continued

Ministers’ manse costs

The District is required to provide accommodation for each Minister and his/her family. The District bears the cost of repairs, maintenance, building insurance, Council Tax and water charges. These costs are not shown separately as benefits-in-kind for Ministers as HMRC does not seek to tax these receipts in the hands of the Ministers.

2. DONATIONS AND LEGACIES

Unrestricted
funds
2023
£
Donatons
100
Grants
-
100
Grants received, included in the above, are as follows:
Mission in Britain grant re. Methodist Acton on Poverty & Justce
Restricted
funds
2023
£
-
8,303
8,303
Total
2023
£
100
8,303
8,403
2023
£
8,303
8,303
Total
2022
£
181
9,122
9,303
2022
£
9,122
9,122

3. INVESTMENT INCOME

Income from investments Unrestricted
funds
2023
£
40,023
40,023
Restricted
funds
2023*
£
1,040
1,040
Total
2023
£
41,063
41,063
Total
2022
£
8,116
8,116

* See note 20 for in-year correction for an immaterial prior year error.

4. INCOME FROM CHARITABLE ACTIVTIES

Actvity
Assessments on circuits
Church actvites
Connexional model trust funds
Church actvites
Connexional priority fund
Church actvites
Contributon to the cost of the chair
Church actvites
Unrestricted
funds
2023
£
34,281
96,973
119,272
44,462
294,988
Total
2022
£
47,457
73,040
139,701
42,741
302,939

11

THE LANCASHIRE DISTRICT OF THE METHODIST CHURCH IN GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS

For the Year Ended 31st August 2023

5. OTHER INCOME

THER INCOME
Circuit recharges re. Layworkers
Circuit recharges re. Manse
Events income received
Miscellaneous income
Unrestricted
funds
2023
£
74,528
3,110
5,620
1,424
84,682
Total
2022
£
52,213
4,377
-
56,590

6. CHARITABLE ACTIVITIES COSTS

Ministry
Mission
Administraton
Other
Manses
District
costs
2023
£
122,487
-
150,289
10,313
7,201
290,290
Grant
funding of
actvites (see
note 7)*
2023
£
12,150
27,305
8,630
-
-
48,085
Support
costs (see
note 8)
2023
£
-
-
1,675
-
-
1,675
Total
2023
£
134,637
27,305
160,594
10,313
7,201
340,050
Total
2022
£
121,124
38,970
120,863
1,045
16,731
298,733

* See note 20 for in-year correction for an immaterial prior year error.

7. GRANTS PAYABLE

Grants and donations totalling £92,121 were made to institutions during the year (2021/22 £141,070) as shown in the table below.

Unrestricted
From General Fund
From District Advance Fund (DAF)
to Circuits / Churches – Mission / Ministry
to Circuits / Churches – Property
to Circuits / Churches – General
to District Services – Mission / Ministry
to District Services – General
From Designated Funds (Unrestricted)
Subtotal
Restricted
From NW Training Forum*
Subtotal
Total
Unrestricted
funds
2023
£
3,543
36,255
-
5,000
22,500
21,536
-
88,834
-
-
88,834
Restricted
funds
2023
£
-
-
-
-
-
-
-
-
3,287
3,287
3,287
Total
2023
£
3,543
36,255
-
5,000
22,500
21,536
-
88,834
3,287
3,287
92,121
Total
2022
£
6,640
55,027
-
5,000
57,500
16,500
403
141,070
-
-
141,070

* See note 20 for in-year correction for an immaterial prior year error.

It should be noted that in the SOFA, grants from the DAF to District Services are treated as ‘Transfers between Funds’. The District Advance Fund receives formulaically determined contributions from the Circuit Model Trust Funds held by Circuits within the District and redistributes the monies to grantees in the District through relevant grants as assessed by the District Grants Committee. The Grants Committee is aware that grant applications must demonstrate public benefit.

12

THE LANCASHIRE DISTRICT OF THE METHODIST CHURCH IN GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS

For the Year Ended 31st August 2023

8. CERTAIN TYPES OF EXPENDITURE

The fees for the independent examiner make up the entirety of the support costs within administration expenditure.

Independent examiner fees
Other fees for accountancy services
2023
£
1,675
0
1,675
2022
£
1,600
0
1,600

9. TRUSTEES’ REMUNERATION AND BENEFITS

The only Trustees who are employees of the District are the District Safeguarding Officer and the Chair’s PA/Administrator.

Trustees’ expenses

It is District policy to offer to reimburse members of the District Policy Committee and others involved in the administration of District affairs for expenditure properly incurred in carrying out their duties.

The Chair of the District undertakes the primary executive role within the District. Apart from the Chair of District, the District Safeguarding Officer, and the Chair’s PA, no member of the District Policy Committee was in receipt of any payment for work undertaken on behalf of the District, although certain travelling and administration costs were reimbursed whenever this was requested.

In the year administration costs have been reimbursed to 1 trustee (2022: 0 trustees), the District Safeguarding Officer, totalling £2,611 (2022: £nil).

10. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs
Apprentceship Levy
Total ministerial staf costs
Plus Chair costs (see Note 12)
Total ministerial staf costs including Chair
Expenses
Ministry
£
82,657
5,204
6,149
413
94,423
7,960
Administraton
£
50,683
3,910
2,921
253
57,767
6,788
2023
£
133,340
9,114
9,070
666
152,190
44,462
196,652
14,748
2022
£
106,621
6,932
8,347
533
122,433
42,741
165,174
5,344

There are £74,528 salary recharges from Circuits received (2022: £52,213) for circuit-based layworkers whose payroll is processed by Lancashire District. These costs therefore appear in the total ministerial staff costs above, along with their salary recharges from the Circuits shown in Note 5 - Other Income.

There is no accrual for holiday pay as it is immaterial; the holiday year ends on 31 August. All staff are paid at or above the living wage.

The average number of staff employed by the District during the financial year amounted to:

2023 2022
Total 8 8

No employees received emoluments in excess of £60,000.

13

THE LANCASHIRE DISTRICT OF THE METHODIST CHURCH IN GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS

For the Year Ended 31st August 2023

11. COST OF CHAIR

The Chair of District chairs meetings of the District Policy Committee (DPC). The members of the DPC are the trustees of the District. The stipend, employer’s NIC and employer’s pension contributions of the Chair of District are paid by the Methodist Connexion. The Chair’s other costs are met by the District.

ethodist Connexion. The Chair’s other costs are met by the District.
Stpend to Chair
Employer’s Natonal Insurance Contributon
Employer’s pension contributon to the defned beneft scheme
Cash cost paid by the Connexion
Chair’s expenses
Total cost
2023
£
33,838
3,390
7,244
44,462
4,164
48,626
2022
£
32,451
3,343
6,947
42,741
4,424
47,165

Since the stipend-related costs above (i.e. £44,462) are borne by the Connexion, they appear both in the Income of the District and the Expenditure of the District. It should be noted that the chair is required to occupy the District manse. The manse is provided by the Lancashire Disitrct and the District maintains the property. The Chair of District is the sole paid key management person and is supported by members of the DPC.

No accrual is made for the Chair’s entitlement to a sabbatical as his functions are undertaken by a Deputy Chair at minimal extra cost to the District.

14

THE LANCASHIRE DISTRICT OF THE METHODIST CHURCH IN GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS

For the Year Ended 31st August 2023

12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWNMENTS FROM
Donatons and legacies
Charitable actvites
Church actvites
Investment income
Other income
Total
EXPENDITURE ON
Charitable actvites
Ministry
Mission
Administraton
Other
Manses
Total
Net gains/(losses) on investments
NET INCOME/(EXPENDITURE)
Transfer between funds
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
2022
Unrestricted
funds*
£
181
302,939
8,073
56,590
367,783
121,124
38,970
120,863
1,045
16,731
298,733
(17,386)
51,664
-
51,664
1,497,841
1,549,505
2022
Restricted
funds*
£
9,122
-
43
-
9,165
-
-
-
-
-
-
-
9,165
-
9,165
31,525
40,690
2022
Total
funds
£
9,303
302,939
8,116
56,590
376,948
121,124
38,970
120,863
1,045
16,731
298,733
(17,386)
60,829
-
60,829
1,529,366
1,590,195

* See note 20 for a prior year adjustment to reclassify comparative funds between unrestricted and restricted funds.

15

THE LANCASHIRE DISTRICT OF THE METHODIST CHURCH IN GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS

For the Year Ended 31st August 2023

13. TANGIBLE FIXED ASSETS

ANGIBLE FIXED ASSETS
COST
At 1stSeptember 2022 and 31stAugust 2023
NET BOOK VALUE
At 31stAugust 2023
At 31stAugust 2022
Freehold
property
£
447,773
447,773
447,773

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade debtors
Prepayments and accrued income
15. CURRENT ASSET INVESTMENTS
Unlisted investments
16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Other creditors
2023
£
4,000
1,462
5,462
2023
£
1,047,712
1,047,712
2023
£
2,432
2,425
4,857
2022
£
27,532
4,449
31,981
2022
£
888,768
888,768
2022
£
4,814
2,350
7,164

16

THE LANCASHIRE DISTRICT OF THE METHODIST CHURCH IN GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS

For the Year Ended 31st August 2023

17. MOVEMENT IN FUNDS

Income from investments

Unrestricted funds
General fund
District Advance Fund
District Benevolent Fund
Chaplaincy Fund
Methodist Church Fund
District Youth Fund
Restricted funds
NW Training Forum
Schools Support Fund
World Church Fund
Methodist Acton on Poverty & Justce
TOTAL FUNDS**
At
01.09.2022*
£
580,567
724,817
140,733
16,157
46,071
41,160
1,549,505
20,675
10,355
538
9,122
40,690
1,590,195
Net
movement
in funds
£
(154,107)
200,804
5,650
(415)
31,464
1,218
84,614
(2,607)
360
-
8,303
6,056
90,670
Transfer
between
funds
£
121,689
(44,036)
(2,916)
(347)
(65,084)
(9,306)
-
-
-
-
-
-
At
31.08.2023
£
548,149
881,585
143,467
15,395
12,451
33,072
1,634,119
18,068
10,715
538
17,425
46,746
1,680,865

* See note 20 for a prior year adjustment to reclassify comparative funds between unrestricted and restricted funds. ** See note 20 for an in-year correction for an immaterial prior year error.

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
District Advance Fund
District Benevolent Fund
Chaplaincy Fund
Methodist Church Fund
District Youth Fund
Restricted funds
NW Training Forum
Schools Support Fund
World Church Fund
Methodist Acton on Poverty & Justce
TOTAL FUNDS
Incoming
resources
£
138,927
244,124
3,673
387
31,464
1,218
419,793
680
360
-
8,303
9,343
429,136
Resources
expended
£
(293,034)
(43,320)
(363)
(46)
-
-
(336,763)
(3,287)
-
-
-
(3,287)
(340,050)
Gains and
losses
£
-
-
2,340
(756)
-
-
1,584
-
-
-
-
-
1,584
Movement
in funds
£
(154,107)
200,804
5,650
(415)
31,464
1,218
84,614
(2,607)
360
-
8,303
6,056
90,670

17

THE LANCASHIRE DISTRICT OF THE METHODIST CHURCH IN GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS

For the Year Ended 31st August 2023

17. MOVEMENT IN FUNDS – continued

Comparatives for movement in funds

Income from investments

Unrestricted funds
General fund
District Advance Fund
District Benevolent Fund
Chaplaincy Fund
Methodist Church Fund
District Youth Fund
Restricted funds
NW Training Forum
Schools Support Fund
World Church Fund
Methodist Acton on Poverty & Justce
TOTAL FUNDS
At
01.09.2021
£
580,583
647,781
156,243
17,981
51,259
43,994
1,497,841
20,675
10,312
538
-
31,525
1,529,366
Net
movement
in funds
£
(134,193)
168,536
(12,377)
(1,750)
31,679
(231)
51,664
-
43
-
9,122
9,165
60,829
Transfer
between
funds
£
134,177
(91,500)
(3,133)
(74)
(36,867)
(2,603)
-
-
-
-
-
-
-
At
31.08.2022*
£
580,567
724,817
140,733
16,157
46,071
41,160
1,549,505
20,675
10,355
538
9,122
40,690
1,590,195

* See note 20 for a prior year adjustment to reclassify comparative funds between unrestricted and restricted funds.

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
District Advance Fund
District Benevolent Fund
Chaplaincy Fund
Methodist Church Fund
District Youth Fund
Restricted funds
NW Training Forum
Schools Support Fund
World Church Fund
Methodist Acton on Poverty & Justce
TOTAL FUNDS
Incoming
resources
£
115,928
225,409
3,587
130
31,679
172
376,905
-
43
-
9,122
9,165
376,948
Resources
expended
£
(240,999)
(56,873)
(407)
(51)
-
(403)
(298,733)
-
-
-
-
-
(298,733)
Gains and
losses
£
-
-
(15,557)
(1,829)
-
-
(17,386)
-
-
-
-
-
(17,386)
Movement
in funds
£
(125,071)
168,536
(12,377)
(1,750)
31,679
(231)
60,786
-
43
-
9,122
9,165
60,829

General Fund:

As the District’s MCF and General Expenses Fund work together to collect Assessments from Circuits and fund the District’s main activities, they combine to be classified as the District’s General Fund. The purpose of the General Fund is to use at the discretion of the Trustees in the furtherance of the general objectives of the District.

18

THE LANCASHIRE DISTRICT OF THE METHODIST CHURCH IN GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31st August 2023

17. MOVEMENT IN FUNDS – continued

Other Designated Funds:

The funds are to serve specific purposes but are not restricted by any document or deed to that purpose alone. These funds comprise:

District Youth Fund – This is used to fund projects which encourage and develop work with young people across the District, including a contribution to young people’s events.

Chaplaincy Fund – Will be used in the near future to help fund the Lancaster University Chaplain post following the cessation of grant funding.

Benevolence Fund – The Fund is available for use across a range of cases of hardship, including ministers, lay-staff, laypeople and anyone on the community suffering hardship. It can also be used to support the consequences of national or global disasters. The sum in reserve is well in excess of the sums normally required and the District Team is looking at the Fund and how it could be used.

Restricted Funds:

The restricted funds are the School’s Support Fund, the NW Training Forum which is being used to fund the Children and Youth Worker Enablers’ training project across the North West region, and the Lancashire District World Church Fund. This Fund is used to support our partner churches in Sierra Leone and Papua New Guinea. It is managed by a committee reporting to the District Policy Committee, and its accounts are separately maintained and audited, before being brought into the District accounts.

Transfers between funds

During the year £44,036 (2022: £91,500) was awarded in grants to district services as follows:

£
to support the Godly Play Bus project 22,500
To support the pension arrears payment 21,536
In additon, a sum of £347 (2022: £5,810) from interest on investments was transferred from unrestricted designated
funds to the unrestricted General Fund to supplement funding for the day-to-day actvites of the District.

18. CONTINGENT LIABILITIES

Grants are recognised annually only as and when performance conditions attaching to the award are met, even when the award is for a recurrent grant over more than one year. All grants awarded for payment in future financial years are conditional on the Grants Committee being satisfied, on the basis of progress reports from the grantee, that the grant’s achievements to date justify the payment of further instalments of that grant. Such commitments are noted as contingent liabilities and included within the District Advance Fund in these accounts, as follows:

Planned to be paid in the future
Total commitment
£
52,400
52,400

This sum is comfortably within the balance of £881,585 held in the DAF at 31[st] August 2023 and further sums are expected to be credited to the DAF from CMTF Levies and CPF distribution in future years.

19

THE LANCASHIRE DISTRICT OF THE METHODIST CHURCH IN GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS

For the Year Ended 31st August 2023

19. CONNECTED ORGANISATIONS AND RELATED PARTY DISCLOSURES

All of the District trustees are members of one or another Church and Circuit within the District and may be trustees in their Churches and/or Circuits.

Connected organisations include the Methodist Connexion, Circuits and Churches within the District, other Methodist Districts in Great Britain, the CFB and TMCP. All of these have their own trustees or directors and autonomous administration such that Lancashire District has no significant influence over any of them, nor they over the Lancashire Methodist District. They are, therefore, not considered related parties.

Name of Connected Organisation

Donee: Methodist Church Fund
Donee: Churches within the Lancashire District (grants)
Donor / Donee: Circuits within the Lancashire District (levies / grants)
Donor / Donee: Connexional Priority Fund (Levy on sale)
Donor: Circuits within the Lancashire District (Assessments from Circuits)
Donor / Donee: Circuits within the Lancashire District (recharges)
Donor / Donee: Liverpool Methodist District (recharges)
TOTAL
Receipts
£
96,973
119,272
402,040
77,638
695,923
Payments
£
436,535
25,900
12,895
1,000
476,330

20. PRIOR YEAR ADJUSTMENT

Fund reallocation

In the previous year a Connexional ‘Mission in Britain’ grant totalling £9,122 was received from the Central Methodist Church specifically for the purpose of Methodist Action on Poverty & Justice, tackling poverty in the local area. This grant should have been restricted for this purpose, whereas in the prior year it was held as unrestricted funds. Therefore, a prior year adjustment has been made to the closing fund reserves balance to move this prior year grant from unrestricted to restricted funds.

Funds Previously recorded
21-22 closing funds
Amendment Amended 21-22
closing funds
Unrestricted 1,558,627 (9,122) 1,549,505
Restricted 31,568 9,122 40,690
Total 1,590,195 - 1,590,195

NW Training Forum – restricted fund in-year correction

During 2022-23, the trustees realised that no transactions had been posted for the NW Training Forum Restricted Fund account since part way through 2020-2021. The transactions that had been omitted were £73 interest income from 202122, a £231 grant payment (administrative purposes) from 2021-22 and another £3,056 grant payment (administrative purposes) from 2020-21. The net impact of these omitted transactions was an overstatement on the brought forward restricted funds of £3,214 (NW Training Forum). Given this error is immaterial, no prior year adjustment has been made, with the error being corrected through the 2022-23 accounts without adjusting the brought forward reserves.

20

THE LANCASHIRE DISTRICT OF THE METHODIST CHURCH IN GREAT BRITAIN DETAILED STATEMENT OF FINANCIAL ACTIVITIES

For the Year Ended 31st August 2023

INCOME AND ENDOWNMENTS
Donatons and legacies
Donatons
Grants
Investment income
Income from investments
Charitable actvites
Assessments on circuits
Connexional model trust funds
Connexional priority fund
Contributon to the cost of the chair
Other income
Other income
Total incoming resources
EXPENDITURE
Charitable actvites
Staf costs paid by the District
Wages
Social security
Pensions
Ministry
Godly Play Bus
Ministerial and lay training
Administraton
Cost of the chair incurred by the Connexion
Chair expenses
Property secretary reimbursement
Property secretary expenses
Postage and statonery
Telephone and internet
IT and computer costs
Payroll administraton
Other ofce expenses
Staf pension payments
Other staf expenses
Synods, commitees and conference
TMCP admin charges
Service charges
Finance administraton
Manses
Property maintenance
Insurance and ground rent
Council tax and water
Other
Sundries (including events)
Grant funding of actvites
Grants to insttutons
Support costs – Governance costs
Independent examiners fee
Total resources expended
Net income before gains and losses
Realised gains/(losses) on fxed asset investments
Net income
2023
£
100
8,303
8,403
41,063
34,281
96,973
119,272
44,462
294,988
84,682
84,682
429,136
114,225
7,194
7,900
24,278
3,785
44,462
4,164
22,872
13
267
400
1,802
520
1,783
25,286
3,784
864
2,533
144
6,500
430
1,134
5,637
10,313
48,085
338,375
1,675
340,050
89,086
1,584
90,670
2022
£
181
9,122
9,303
8,116
47,457
73,040
139,701
42,741
302,939
56,590
56,590
376,948
88,175
5,064
7,224
23,968
4,845
42,741
4,424
21,970
569
185
1,311
1,538
480
471
-
351
-
2,363
108
6,500
11,674
971
4,086
1,045
67,070
297,133
1,600
298,733
78,215
(17,386)
60,829

21