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2023-08-31-accounts

Circuit Accruals Accounts 2022-2023

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THE METHODIST CHURCH TEMPLATE REPORT AND ACCOUNTS (ACCRUALS BASIS) for the year ended 31 August 2023

Lancashire West Methodist Circuit

Registered Charity - Registration number 1134877

DISTRICT
18 / 19
LIVERPOOL
Ministers
Circuit Stewards
Circuit Treasurer
Rev Sue Guénault
Rev Michael Tindsley
Derek Ashcroft
Rev Alex Laing
Derek Ashcroft
Linda Jones
Malcolm Roxburgh
Dilys Lightfoot
Anne Baldwin
Derek Ashcroft

Lancashire West Methodist Circuit

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 AUGUST 2023

Introduction

The Lancashire West Methodist Circuit seeks to support the life of the Communities within its boundaries in a variety of ways:

The continued provision of regular public acts of worship open to members of the church and non-members alike. The teaching of Christianity though sermons, courses and small groups. Pastoral work including visiting the sick and bereaved.

Promoting the whole mission of the church through activities and support for older people, parents and toddlers and other specific groups when appropriate.

Aims and organisation

The Circuit is committed to developing a Team Ministry to allow the Circuit Staff to use their particular gifts across the whole Circuit.

We seek to develop Spirituality and Discipleship, and to encourage Outreach across the Circuit. We are committed to working with the four Methodist [two Methodist/CofE] Schools within the Circuit.

We seek to engage with the Rural Communities around us and to support the Chaplaincy in the expanding Edge Hill University.

Review of the year

During the twelfth year of its existence the Circuit has continued to build links between the churches and to find new ways of working together.

Volunteers from the Circuit have made a contribution to the life of the wider community in a variety of ways including: serving on the governing bodies of the four Methodist schools in the Circuit and supporting the work of the Food Banks.

Work with local primary schools has been developed through the continued appointment of a Family & Schools Worker whose remit is to strengthen links between the churches, pupils, staff and parents. The Circuit Trustees are continuing to explore ways of supporting the churches elsewhere in the Circuit by finding the most effective ways of using the resources available to them. Four of the Circuit Churches – Mere Brow, Holmes, Holmeswood and Tarleton have been working closely together and made the decision to combine under one Church Council from 1/9/23.

The Circuit has made grants available to support the mission of our local Churches and Ecumenical partners. We continue to monitor the best use of our resources and deployment of staff.

In compliance with the Safeguarding policy of the Methodist Church, training sessions continue to be held in order that all required people completed the “Creating Safer Spaces” module.

Churches were encouraged to deal with outstanding property issues, and given support with various property schemes. Weekly worship was sustained across the Circuit

The Circuit continued to support World Church, Mission in Britain, Christian Aid, All We Can and to support the work of several local Food Banks. The Circuit began to support the secondary education of six girls in Malawi through the Mamie Martin Fund, a commitment for the next two years. In addition to this Churches responded to crisis appeals at various times through the year.

Income trends

Letting income relates to funds generated from Manse not currently required.

Expenditure trends

Stipend expenditure has increased each financial year in line with conference approved increases.

£38000 is the Circuit contribution to the District and Connexion in the coming year of which a significant part is used to fund the work of the wider Methodist Church.

The other expenditure includes maintaining the Circuit office, administrator, family & schools worker, 2 manses and supporting mission work.

Fund balances

As at 31 August 2023, the net current assets of the Circuit were £45,504 and includes short term loans made to circuit churches These exclude investments held by TMCP and any restricted funds, giving approximately 3 months reserve cover for expenditure.

Plans for 2023/24

Circuit financial plans for the coming year have been prepared on the basis that there will be Three ordained staff in post and two Layworkers With anticipated cost of living stipend increases combined with an increase in the assessment paid to the district, a circuit church assessment has been set with this in mind

Lancashire West Methodist Circuit

Trustee’s Annual Report on Finance and Governance

2021-2022

Basis of preparation and legal framework

The Trustees of the Charity present their Annual Report and the audited financial statements for the year ended 31 August 2023. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial staements and comply with the standing orders of the Methodist Church. The trustees have adopted the provisions of the Statement of Recommentded Practice (SORP) & "Accounting and Reporting by Charities" (FRS102) in preparing the annual report and financial statements of the charity.

Full Name of Charity: Lancashire West Methodist Circuit

Registration Charity Number: 1134877

Date of registration 12/03/2010

Main communication address Emmanuel Methodist United Reformed Church 38 Derby Street Ormskirk L39 2DE

The members of the Lancashire West Methodist Circuit meeting are the Charity Trustees, membership being made up of circuit office holders, ministers and representatives appointed by the local churches.

Fully membership is shown as Appendix A to this report.

Circuit Ministers and officers

Active Circuit Ministers Rev Michael Tindsley
Rev Sue Guénault
Rev Alex Laing
Circuit Stewards Mrs Linda Wedge
Mr Derek Ashcroft
Mrs Anne Baldwin
Mrs Dilys Lighfoot
Mr Malcolm Roxburgh
Administrator: Mrs Jayne Chard
Independent examiner Mr Chris Cullen
50 Spensers Lane
Skelmersdale
WN8 9JR

Investment Bankers Central Finance Board of the Methodist Church Trustees for Methodist Church purposes

Lancashire West Methodist Circuit

Aims and organisation

Charity objective is to act as a Resource provider within the area around West Lancashire for the Methodist Church:

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

a) The Christian faith in accordance with the doctrinal standards and discipline of The Methodist Church;

b) Any charitable purpose for the time being of any Connexional, District, Circuit. local or other organisation of The Methodist Church;

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

The organisation and resourcing of regular public acts of worship open to members of the church and non members alike.

The teaching of Christianity through sermons, courses and small groups.

The resourcing of pastoral work including visiting the sick and bereaved. Taking religious assemblies in local schools.

Promotion of Christianity through the staging of events and services. Provision of chaplaincy services to the local university and other institutions.

Public Benefit

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

Structure, Governance and Management

The governing document for the circuit is the Deed of Union (1932) and Methodist Church Act (1976)

Detailed governance arrangements are outlined within the Constitutional Practice and Discipline of the Methodist Church by order of the annual conference (CPD).

Day to day management of the circuit is undertaken by the Circuit Leadership team along with the Local Preachers meeting, the Circuit Finance and Property Committee and the Circuit Policy Committee.

Trustee Training

A range of guidance produced by Methodist Connexion to support the effective running of the circuit , specifically the leaflet ‘The Role of a Trustee in The Methodist Church’ is given to all new Circuit meeting members as induction to their role as trustees.

Related Parties

The Circuit is part of the Liverpool District and is also accountable to the Methodist Conference. The following Methodist Churches are linked to the circuit: Burscough, Mere Brow & Tarleton, Ormskirk, Mawdesley, Trinity, Upholland and Croston.

Lancashire West Methodist Circuit

Risk Management

The major risks have been identified and recorded by the Circuit Finance and Property Committee with professional advice taken as required.

There is a regular annual review process undertaken and recorded.

Income and Expenditure is being monitored in total and is compared with the approved annual budget on a half yearly basis to detect trends as part of the risk management process to avoid unforeseen calls on reserves.

Safeguarding

Every person has a value and dignity which comes directly from the creation of male and female in God’s own image and likeness. Christians see this potential as fulfilled by God’s re-creation of us in Christ. Among other things this implies a duty to value all people as bearing the image of God and therefore to protect them from harm.

Methodist Connexional practice outlines commitment to the following principles:

The Lancashire West Circuit commits itself to ensuring the implementation of Connexional Safeguarding Policy; government legislation, guidance and safe practice in the circuit and in the churches.

Reserves Policy

The Reserves Policy for the Circuit is to hold a minimum sum equivalent to five months’ average expenditure. This should be sufficient to meet any unforeseen item of major expenditure on manses and / or to be able to continue, in the short term, funding planned activities in the event of any inability to raise the full Circuit Assessment from churches.

2022-2023

Lancashire West Methodist Circuit

2023-2024

Appendix A

CIRCUIT MEETING MEMBERSHIP as at June 2024

MINISTERS

Rev Michael Tindsley Rev Sue Guenault Rev Alex Laing

for the year ended 31 August 2024

SUPERNUMERARY MINISTERS

Rev Dr Geoff Farthing

LAYWORKERS

CIRCUIT STEWARDS

Linda Jones Malcolm Roxburgh Derek Ashcroft Dilys Lightfoot Brian Guy

Circuit Local Preachers & Worship Leaders representatives Dr Julian Butcher

Circuit Meeting Secretary Jayne Chard

Circuit Safeguarding Co-ordinator Peter Harrison

CIRCUIT CHURCH REPRESENTATIVES

Church 1 Burscough Methodist Rep 1 Brian Guy
Rep 2 Jackie Moore
Rep 3 Sid Cleary
Church 2 Mere Brow & Tarleton Colin Aspinall
Graham Wright
Keith Ascroft
Barbara Meynall
Marion Ascroft
Tom Gregson
Patricia Barron
Joan Lawson
Natalie Travis
Margaret Warren
Church 3 Trinity Methodist Croston Rep 1 George Lloyd
Rep 2 Christine Fisher
Church 4 Emmanuel Methodist URC Rep 1 Mark Taylor
Rep 2 Peter Harrison
Rep 3 Anne Baldwin
Church 5 Mawdesley Methodist Rep 1 Jane Allen
Rep 2 David Allen
Church 6 Trinity Methodist URC Rep 1 Helen Porter
Rep 2 Jenny Ashcroft

Church 7 Upholland Methodist

Rep 1 Jean Bradshaw Rep 2 Alan Jones

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Notes to the Accounts 22/23

1 Basis of accounting

The financial statements have been prepared under the Charities Act 2011 in accordance with the 2014 version of Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with FRS102 – the Charities SORP (FRS102) and taking note of the Update Bulletins

2 Funds

The funds held constitute: General Funds held for any purpose of the Circuit which are Unrestricted. The Circuit Model Trust Fund has wide purposes defined in Standing Orders and is categorised as unrestricted. Details of each material fund is disclosed in the final note to these accounts. Any funds may be represented by more than just cash.

3 Accounting policies Basis

These accounts have been prepared on the basis of historical cost except that investments are shown at their market value at the end of the year, on the accruals basis to show a true and fair view of the Circuit’s financial position and activities. Since the Circuit is not VAT registered, all input VAT is charged with the expenses to which it refers.

3.1 Incoming Resources

Income is included in the Statement of Financial Activities (SOFA) when the Circuit becomes entitled to the resources, and the trustees are reasonably certain they will receive the resources; and the monetary value can be measured with sufficient reliability.

a) Income from monetary investments relate to CFB & CTMP account interest

b) See note on investment properties. 4.1

c) Income from assessments on circuit churches on formula of ‘ability to pay’ basis.

d) Other income relates to of £20,000 made from Holmeswood church to finance a Circuit

3.2 Resources Expended

This is recognised when a liability is incurred, or a constructive obligation arises, that results in the payment being unavoidable. Liabilities are recognised as soon as an outflow of economic benefit is considered more likely than not under the legal or constructive obligation committing the Circuit to pay out resources.

a) Grants

Grants made by the Circuit from its own funds are recognised in full at the time of agreement or when the Circuit accepts that there is a legal or operational obligation to make the payment. Grants were made to the Connexion Departments and circuit churches to further their mission work and/or make property refurbishments to enable mission outreach. b) Loans

Interest free loans are made to churches to support work or/and mission iniciatives. In the case of Tarleton church, to meet fees until church land or/and other chiurches are sold

3.3 Tangible fixed assets for use by the Circuit

The circuit property (2xManses) is shown in the accounts at insured re-instatement value, the latest being professionally carried out in 2016. No depreciation is provided on the buildings because the trustees consider the current residual fair value of the manse buildings (on the assumption that it had reached the end of its useful economic life by the year-end) to be not less than its current value. Any depreciation would not be material. See note on the investment properties. Insured value of equipment for use throughout the Circuit, has been, and will be re-

4.1 Investment Properties

a) In 2016/17, the property known as ‘Roby Mill’ was disposed of but a piece of ‘Nursery Land’ retained with no specific value which is leased to an Allottment Group as approved by the Custodian Trustees. This piece of land is to be sold by auction in 23/24

b )There are no additional investment properties, however one manse not occupied by a minister in over 3yrs is being rented out to provide accommodation for a family of Afgan Refugees. This is seen as a medium to short term arrangement, and will be reclassified as investment property in future years accounts

. c) The number of circuit presbyters has been reduced from 4 to 3. Two are using their home as a 'Manse' one replacement manse is to be purchased from the proceeds of two previous properties. The proceeds are invested at CFB/TMCP with the intention of purchasing a replacement manse during 23/24

4.2 Investments

Investments are valued in the balance sheet at market value at the year end. Investment income is included in the accounts when receivable and any gains or losses on revaluation at the year end are shown in the SOFA.

4.3 Debtors and Prepayments

Prepayments on September stipends and associated costs.

4.4 Creditors

Creditors include both sundry expenses and specifically the 1st quarter assessment received in August.

5 Payment to Trustees

There were no payments made to trustees for additional services provided to the Circuit by agreement with the Circuit Meeting except those who perform the duties of Local Preachers, Supernumeraries and Circuit stewards for travel reimbursement only. Costs are included in ‘Other outgoings’ - see line 16 in SOFA

Trustee

expenses

2022/23 2021/22
Number of Trustees
6
6
Total Amount £950 £1,025

6 Fees for examination or audit of the accounts

nation or audit of the accounts
Independent examiner’s or auditors'
fees for reporting on the accounts
Other fees (eg: advice, accountancy
services) paid to the independent
examiner or auditor
2022/23 2021/22
NIL NIL
NIL NIL

7 Paid employees

Staff Costs paid during the year Gross wages, salaries and benefits Employer’s National Insurance costs Pension costs Total staff costs

Average number of full-time

22/23 21/22
£23,477 £23,166
£0 £0
£1,408 £1,390
£24,885 £24,556
1.5 1.5

8 Capital Commitments and Contingent Liabilities

At the 31st August 2023 there are no capital commitments.

No Contingent liabilities were identified at 31st August 2023

9 Tangible Fixed Assets

Cost or valuation

Land Manses Buildings fittings Total
£ £ £ £ £
Balance brought forward 6674 792,698 1276 800,648
Revaluations(+/-) 574 67,718 -426 67,866
Disposals(-) -
Transfers *(+/-) -
Balance carried forward 7,248 860,416 850 868,514

Accumulated depreciation

Balance brought forward
Depreciation charge for
year (-)
0 0
Revaluations (+/-)
Disposals (-)
Transfers* (+/-)
Balance carried forward 0 0

Net book value

Brought forward 6,674 792,698 0 1,276 800,648
Carried forward 7,248 860,416 0 850 868,514

10 For information only Money received and passed on to External Organisations

Balance brought forward from last year
Offerings/Gifts - received for External Organisations
Offerings/Gifts - passed to External Organisations
Balance carried forward
2022/23 21/22
547 82
2049 4295
2754 3830
-158 547

11 Investment Assets

The Circuit has no additional assets - see note 4

12 Loans

The Circuit has no current loans due

13 Summary of fund movements 2023

Fund Balance at
31st Aug 2022
Income Expenditure Transfers Gains/Loss Balance at
31st Aug 2023
Unrestricted & Undesignated £ £ £ £
General 834,064 184,825 214,905 27000 67,866 898,850
Circuit Model Trust 506,801 8,073 30,703 -42000 442,171
Total 1,340,865 192,898 245,608 15,000
-
67,866 1,341,021
Designated 0 0
Property Account 16,328 12,000 31,145 15000 12,183
Emergensies & Removals 3,107 - 280 0 - 2,827
Total 19,435 12,000 31,425 15,000 0 15,010
Total Unrestricted 1,360,300 204,898 277,033 - 67,866 1,356,031
Restricted
Love Beyond our Shores Project 547 2,050 2,754 -157
- 0
Total Restricted & Endowment 547 2,050 2,754 - - 157
-
Total of all funds 1,360,847 206,948 279,787 - 67,866 1,355,874

Analysis of Net Assets Between Funds

Fund balances at August 2023 are represented by :

Balance at 1st
Sept 2022
General
Fund
Circuit
Model Trust
Fund
Designated
Funds
Restricted &
Endowment
Funds
Balance at
31st Aug 2023
Tangible Fixed Assets 800,648 868,514 868,514
Fixed Asset Investments - -
Investments -
Current Assets 560,199 30,337 442,170 15,011 158
-
487,360
Current Liabilities - -
Creditors Due After one Year - - -
Total Fund Value 1,360,847 898,851 442,170 15,011 158
-
1,355,874

Name of Circuit . ..LANCASHIRE WEST........,.. ....................................No18119. Declarations and Scrutiny I confimi that these accruals-based accounts for the year to 31 August 2023 have been prepared from the records of the Circurt and that they include all funds under the control of the Circuit meeting. Signature of treasurer Date...6th June 2024.. Name and address of treasurer OEREKASHCROFT.............. 358 ORMSKIRK RD, SKELMERSDALE .PostCodeWN8 9AN.......... Presenlation to the Circuit meeting I confinn that the annual report and accounts for the year ended 31 August 2023 wereAvill . bepresented to the Circuit meeting held on: 11th June 2024. SMJnature of the Chair of the meeting.. Name of the Chair of the meeting., Rev M. C Tindsley.................. Date 11th June 2024 Independent Examiner's Report to the Trustees of the LANCASHIRE WEST .Circuit Charlty Number 1134877 Re8ponsibiliti•s and basis of report I report to the trustees on my examination of the accounts of the Lancashire West CircuFt for the year ended 31 August 2023 set out on pages 1 to 8 As the CifCUIt's trustees, you are responsible for the preparation of the accounts in accordance with the requiremenls of the Charities Act 2011 ('the Act,). I report in respect of my examination of the Circuit's accounts carried out under section 145 of the Acl and, in carrying out my examination. I have followed all the applicable Directions given by the Charity Commission under section 145(51(b) of the Act.

delete or circle as appropriate Name of Circuit LANCASHIRE WEST.. No 18119.......... Independent Examln6r's Statement rrhe Circurt's gross income exceeded £250,000 and l am qualified to undertake the examinalion by being a qualrfied member of (insert name of applicable listed body)]. Delete [ ] if not applicable. I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination {other than that disclosed below.) which give me cause to believe that in. any material respect.. the accounting records were not kept in accordance wrth section 130 of the Act., or the accounts do not accord with the accounting records., or the accounts do not comply with the applicable requirements conceming the fom 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 Delete if not applicable i.e. all R&P 8ccounts the trustees, annual report is not consistent with Ihe accounts Deleteif not applicable i.e. all R&P accounts. I have no concems and have come across no other matters in connection wrth the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. I havelhave not. obtained independent verification of all investments with the Trustees for Methodist Church Purposes or held in other trusts, bank balances and funds at the Central Finance Board of the Methodist Church which are individually in excess of £10,000 {ten thousand pounds) at the balano sheet date, Signature of independent examiner Name of independent examiner.. MR CHRIS CULLEN...................................................... Relevant professional qualification of independent examiner.. NIA Name of firni (where appropriate).. .NlA.......................................... Address.. 50 SPENCERS LANE. SKELMERSDALE. LANCS............................ .. .... . . Post Code. WN8 9JR Oate.. .8th June 2024.... de￿Ie or circle as appropriate