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2021-08-31-accounts

Circuit Accruals Accounts 2020-2021

THE METHODIST CHURCH

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REPORT AND ACCOUNTS
(ACCRUALS BASIS)
for the year ended 31 August 2021
Mid Cheshire Methodist Circuit
Registered Charity - Registration number 1135031
Chester and Stoke on Trent District No / Circuit No 11/04/2011
Ministers Rev Chris Pritchard
Rev Tim Simms
Rev Harold Stuteley
Deacon Shirley Hassall
31st August 2020 31st August 2021
Circuit Stewards Mrs I Collie Mrs I Collie
Mrs K Craig Mrs K Craig
Mr M Fellows Mr M Fellows
Mrs R Gilbert-Bratt Mrs R Gilbert-Bratt
Mr M Newman Mr M Newman
Circuit Treasurer Mr M Newman
|
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Mid Cheshire Methodist Circuit TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 AUGUST 2021

Introduction

The Circuit is made up of sixteen individual churches plus the Northwich Methodist Outreach Centre witnessing the Methodist faith and promoting Christian faith and values within their local community.

Aims and organisation

Showing God’s love to the world and especially to the people of Northwich, Winsford and the surrounding area.

Review of the year

At the start of the financial year there were 16 active local churches witnessing the Methodist faith. These included the Community Church of Castle in collaboration with the United Reform Church and the Ecumenical Partnership with St Mary's Church Weaverham. Sadly during the course of the year Moulton Methodist Church had to close its doors due to membership falling below what was viable. Their people were welcomed into other fellowships.

At the end of the year we said goodbye to Rev Tim Simms who had served as a Circuit Minister since September 2014 .In his place we welomed Rev Frances Ballantyne. We are served by 3 full time Presbyters and one full time Deacon.

The Superintendent Minister, Rev Chris Pritchard will remain Superintendent until September 2022 at which time he will be replaced by Rev Janet Aspey.

Income Trends

Circuit income is primarily drawn from the Assessments paid by the circuit churches. A secondary income stream is from the hiring out of the Northwich Methodist Outreach (NMOC) Centre. However the income from this stream from March 2020 has been curtailed by the lockdown restrictions. A Circuit Fund was set up into which people could pay to support the online Sunday Services.

Expenditure trends

Stipend expenditure has increased each financial year in line with Conference approved increases. Our main expenditure is on Ministers' stipends plus the cost of the Manses and their personal expenses. There are major payments to the Chester & Stoke District, plus contributions to the wider Connexion of which a significant part is used to fund the work of the wider Methodist Church.

Fund balances

As at 31 August 2021 the net current assets of the Circuit were £68,734 (excluding CMTF), giving approximately 3 months cover for expenditure.

Plans for 2021/2022

Circuit financial plans for the coming year have been prepared on the basis of four full time ordained staff with anticipated cost of living stipend increases combined with an increase in the assessment paid to the district such that on average an increase in expenditure on those costs of around 5% is anticipated. Due to the effect of the lockdown on individual church's funds a "payment holiday" was accepted for the first quarterage payment, normally due in November. This has meant that money has been withdrawn from TCMP Model Trust Funds but these have been augmented by the sale of Bartington and Moulton Methodist Churches.

Mid Cheshire Methodist Circuit

Trustee’s Annual Report on Finance and Governance

Basis of preparation and legal framework

The Charity’s annual report and accounts for the year ended 31 August 2021 have been prepared in accordance with the Charities Act 2011 and the Charities: Statement of Recommended Practice 2015 as applicable to the Financial Reporting Standard (FRS) 102

Full Name of Charity: Mid Cheshire Methodist Circuit

Registration Charity Number: 1135031

Date of registration: 18 March 2010

Main communication address: Northwich Methodist Church, Witton Street, Northwich, Cheshire, CW9 5LP

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

Governance of the Circuit is vested in the Circuit Leadership Team comprising the four Ministers and five Circuit Stewards.

Full membership is shown as Appendix A to this report.

Mr Mike Newman acted as the principal officer overseeing the day to day financial management and accounting for the Circuit during the year.

Independent examiner: Murray Smith LLP, Darland House, 44 Winnington Hill, Northwich, Cheshire, CW8 1AU

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

Mid Cheshire Methodist Circuit

Aims and organisation

Charity objective is to act as a Resource provider within the area around Mid Cheshire 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;

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 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 and the circuit management 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 Chester & Stoke District and is also accountable to the Methodist Conference.

The following Methodist Churches are linked to the Circuit:

Barnton, Castle, Chester Road, Comberbach, Davenham, Hartford, Little Budworth, Lostock Green, Pickmere, Sandiway, Shurlach, St Andrews, Trinity, Weaver, Weaverham

Moulton Methodist Church was sadly closed in January 2021.

Mid Cheshire Methodist Circuit

Risk Management

The major risks have been identified and recorded by the Circuit Leadership Team 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 Mid Cheshire Methodist Circuit commits itself to ensuring the implementation of Connexional Safeguarding Policy; government legislation, guidance and safe practice in the circuit and in the churches.

The Mid Cheshire Methodist Circuit commits itself to the provision of support, advice and training for lay and ordained people that will ensure people are clear and confident about their roles and responsibilities in safeguarding and promoting the welfare of children and adults who may be vulnerable.

Supernumerary Minister Rev Pat Billsborrow has agreed to co-ordinate the Circuit's Safeguarding process with help and support from the District Team.

Reserves Policy

The Reserves Policy for the Circuit is to hold a minimum sum equivalent to 6 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.

Mid Cheshire Methodist Circuit

Circuit No 1135031

Statement of Financial Activities (SOFA) for the year ended 31 August 2021

Notes to
the
accounts
Income
1 Donations and legacies
2 Income from monetary investments
3 Income from investment properties
4 Assessments on Churches
5 Capital Receipts
6 Grants received
7 Other charitable income
8Total income
Expenditure
9 Grants and donations
10 Salaries and associated costs
11 Property maintenance
12 Connexional assessment & model trust levy
13 District Assessment & Levy
14 Depreciation
15 Office expenses
16 Other outgoings
17Total charitable expenditure
18 Gains/(losses) on monetary investments
19 Gains/(losses) on investment properties
20Net income/(expenditure)
21 Transfers between funds
22 Other gains/(losses)
23Net movement in funds
24 Total funds brought forward
25 Total funds carried forward

General Fund
(Unrestricted)
Circuit Model
Trust
(Unrestricted)
Designated
Funds
(unrestricted)
Restricted
Funds
Endowment
Funds
Total
2020-21
£
£
£
£
£
£
4,502
4,502
39
1,448
930
2,417
-
191,931
191,931
-
-
9,870
9,870
206,342
1,448
-
930
-
208,720
-
141,528
141,528
6,660
18,675
25,335
-
46,760
46,760
-
30,679
364
31,043
9,263
6,580
11
15,854
234,890
25,619
-
11
-
260,520
-
(28,548)
(24,171)
-
919
-
(51,800)
568,231
(568,155)
(76)
-
539,683
(592,326)
-
843
-
(51,800)
1,170,632
680,682
5,258
1,856,572
1,710,315
88,356
-
6,101
-
1,804,772

Mid Cheshire Methodist Circuit

Circuit No 1135031

Statement of Financial Activities (SOFA) for the year ended 31 August 2020

Notes to
the
accounts
Income
1 Donations and legacies
2 Income from monetary investments
3 Income from investment properties
4 Assessments on Churches
5 Capital Receipts
6 Grants received
7 Other charitable income
8Total income
Expenditure
9 Grants and donations
10 Salaries and associated costs
11 Property maintenance
12 Connexional assessment & model trust levy
13 District Assessment & Levy
14 Depreciation
15 Office expenses
16 Other outgoings
17Total charitable expenditure
18 Gains/(losses) on monetary investments
19 Gains/(losses) on investment properties
20Net income/(expenditure)
21 Transfers between funds
22 Other gains/(losses)
23Net movement in funds
24 Total funds brought forward
25 Total funds carried forward
General Fund
(Unrestricted)
Circuit Model
Trust
(Unrestricted)
Designated
Funds
(unrestricted)
Restricted
Funds
Endowment
Funds
Total
2019-20
£
£
£
£
£
£
2,658
2,658
291
1,363
16
1,670
-
214,334
214,334
112,353
112,353
-
15,216
15,216
232,499
113,716
-
16
-
346,231
-
145,618
145,618
8,769
1,920
10,689
-
45,156
45,156
-
34,882
252
35,134
15,034
27,949
11
42,994
249,459
30,121
-
11
-
279,591
-
(16,960)
83,595
-
5
-
66,640
27,587
(27,500)
(87)
-
10,627
56,095
-
(82)
-
66,640
1,160,005
624,587
5,340
1,789,932
1,170,632
680,682
-
5,258
-
1,856,572

Mid Cheshire Methodist Circuit

Circuit No 1135031

Balance Sheet as at 31 August 2021

GN

Fixed Assets Notes to the
Accounts		 General Fund
(Unrestricted)
£		 Circuit Model
Trusts
(Unrestricted)
£		 Designated
Funds
(Unrestricted)
£		 Restricted
Funds
£		 Endowment
Funds
£		 Totals
2020/21
£		 Totals
2020/21
£		 Totals
2020/21
£
Circuit Manses & Equipment 951,445 951,445
Investmentproperties 696,239 696,239
Investments 0
Total fixed assets 1,647,684 0 0 0 0 1,647,684
Current Assets
Debtors 2,295 2,295
Loans bythe Circuit 0
Investments with TMCP 87,863 6,101 93,964
Central Finance Board Deposits 95,312 493 95,805
Cash at Bank and in hand 10,103 10,103
Total current assets 107,710 88,356 0 6,101 0 202,167
Current liabilities
Creditors (due in under 1 year) 45,077 45,077 42,115
Grantspayable within 2020-21 0 0
Total current liabilities 45,077 0 0 0 0 45,077 42,115
Net current assets/liabilities 62,633 88,356 0 6,101 0 157,090 208,890
Total assets less current liabilities 1,710,315 88,356 0 6,101 0 1,804,772 1,856,572
0
0
0
1,804,772
1,710,315
88,356
0
1,798,671
6,101
0
1,804,772
Long term liabilities (due
after more than one year)
Grantspayable after 2020-21 0
Loans to the Circuit 0
0
Net assets 1,710,315 88,356 0 6,101 0 1,804,772
Funds of the Circuit
General Fund(Unrestricted) 1,710,315 88,356 6,101 1,710,315 1,170,632
Circuit Model Trust Fund (Unrestricted) 88,356 88,356 680,682
Designated Funds(Unrestricted) 0 0
Total Unrestricted Funds 1,798,671 1,851,314
Restricted Funds 6,101 6,101 5,258
Endowment Funds 0 0
Total Funds 1,710,315 88,356 0 6,101 0 1,804,772 1,856,572

Signed

Circuit Treasurer

Mid Cheshire Methodist Circuit

Notes to the Accounts

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 the Financial Reporting Standard 102.

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. Restricted funds which are held for a narrower purpose . There are also the following Endowment funds as listed. Details of each material fund are 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.

Income Recognition

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.

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.

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.

VAT

Since the Circuit is not VAT registered, all input VAT is charged with the expenses to which it refers.

Tangible fixed assets for use by the Circuit

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 market values. No depreciation is provided on the building because the trustees consider the current residual fair value of the manse buildings (on the assumption that it had reached the end of its useful economic life by the year-end) to be not less than its current value. Any depreciation would not be material. The property has been reviewed for impairment.

Investment Properties

Investment properties - no property is currently deemed to not be held for the long term purposes of the charity.

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.

Debtors and Prepayments

The debtors included in the accounts is in respect of a stipend paid to Rev James Patron Bell in error, which has been repaid but after the year end. The prepayment included in the accounts is in respect of rates and insurance.

Creditors

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

4. Donations and legacies Mid Cheshire Methodist
Donations
Legacies		 4,502
-
-
4,502
2,658
-
-
-
-
-
Total
5. Charitable activities - other		 4,502
-
-
4,502
2,658
Unrestricted
Circuit Model
Trust Fund
Restricted
2021
Total
2020
Total
£000
£000
£000
£000
£000
Sale of Land -
-
-
-
-
Total
6. Other trading activities		 -
-
-
-
-
Unrestricted
Circuit Model
Trust Fund
Restricted
2021
Total
2020
Total
£000
£000
£000
£000
£000
Other income
Grants received		 9,870
-
-
9,870
15,216
-
-
-
-
-
Total
7. Investment income		 9,870
-
-
9,870
15,216
Unrestricted
Circuit Model
Trust Fund
Restricted
2021
Total
2020
Total
£000
£000
£000
£000
£000
Central Finance Board
TMCP
Other		 39
-
-
39
291
-
1,448
930
2,378
1,379
-
-
-
-
-
Total 39
1,448
930
2,417
1,670

Mid Cheshire Methodist Circuit

8. Payment to Trustees

Payments made to trustees for additional services provided to the Circuit by agreement with the Circuit Meeting

Number of trustees who were paid expenses Nature of the expenses Expense payments primarily relate to reimbursement for travel and computing costs Total amount paid

9. Fees for examination 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

This year Last year
£
£
£ 686 660
£

10. Paid employees

Staff Costs paid during the year were:
Gross wages, salaries and benefits in kind
Employer’s National Insurance costs
Pension costs
Total staff costs
Average number of staff employeed during the year were:
£
£
£
£		 111,253
20,618
9,657
141,528
5
109,402
26,801
9,415
145,618
5 6

Mid Cheshire Methodist Circuit

11 Tangible Fixed Assets
Cost or valuation
Detail of assets held,
State number of manses, specifically reference other buildings managed by the circuit and separately identify property treated as investment
property.
Providedsummary information in respect of other categories and specific reference should be made in resppect of any assets under
construction.
Residential Land
£		 Other Land
£		 Manses
£		 Other buildings
£		 Other fixed
assets including
motor vehicles
£		 Fixtures, fittings
and equipment
£		 Payments on
account and
assets under
construction
£		 Total
£
Balance brought forward 951,445 - 951,445
Additions -
Revaluations(+/-) -
Disposals(-) -
Transfers *(+/-) -
Balance carried forward - - 951,445 - - - - 951,445
*Basis*
 Rate
Accumulated depreciation
Balance brought forward
Depreciation charge foryear(-)
Revaluations(+/-)
Disposals(-)
Transfers*(+/-)
Balance carried forward
Net book value
Brought forward - - 951,445 - - - - 951,445
Carried forward - - 951,445 - - - - 951,445
Manses:
Lostock Gralam 180,285
Northwich 273,005
Winsford 222,082
Cuddington 276,073
951,445

** Indicate the method of depreciation by deleting the method not applicable (SL = straight line; RB = reducing balance). Also indicate the rate of depreciation: for straight line, depreciation is based on the anticipated life of the asset (in years); for reducing balance, a percentage annual deduction is made each year.

Mid Cheshire Methodist Circuit

12. Analysis of current assets

Debtors and prepayments Pre paid assessments Accrued income Other debtors Total debtors and prepayments Analysis of cash at bank

Bank balance held in Natwest Bank balance held in Central Finance Board Bank balance held in other Total Cash and Bank

This year
£
2,295
2,295		 Last year
£
2,295 4,494
2,295 4,494
10,103 5,258
95,805 53,961
- -
105,908 59,219

13. Analysis of current liabilities and long term creditors

Trade Creditors Other Creditors Total Current Liabilities

£
£
£
45,077 42,115
45,077 42,115

14. Capital Commitments and Contingent Liabilities

At the 31 August 2021 the Circuit has no capital commitments.

No Contingent liabilities were identified at 31 August 2021.

Name of Circuit: Mid Cheshire Circuit

No: 1135031

Declarations and Scrutiny

I confirm that these accruals-based accounts for the year to 31 August 2021 have been prepared from the records of the Circuit and that they include all funds under the control of the Circuit meeting.

Signature of treasurer ……………………………………………………… Date…………………….. Name and address of treasurer …………………………………………………………………………. …………………………………………………………………………………. Post Code………………

Presentation to the Circuit meeting

I confirm that the annual report and accounts for the year ended 31 August 2021 were

presented to the Circuit meeting held on ……………..

Signature of the Chair of the meeting …………………………………………………………………… Name of the Chair of the meeting …………………………………………… Date ……………………

Independent Examiner’s Report to the Trustees of the Mid Cheshire Circuit

Charity Number 1135031

Responsibilities and basis of report

I report to the trustees on my examination of the accounts of the Mid Cheshire Circuit for the year ended 31 August 2021. As the Circuit’s trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

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

Independent Examiner’s Statement

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

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.

Signature of independent examiner ………………………………………………………………….

Name of independent examiner ……………………………………………………………………….

Relevant professional qualification of independent examiner ………………………………………

Name of firm (where appropriate) ……………………………………………………………………… Address …………………………………………………………………………………………………… ……………………………………………………………………………….. Post Code ……………… Date …………………………………………