2020-08-31-accounts - The Methodist Church - Manchester Circuit

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THE METHODIST CHURCH – MANCHESTER CIRCUIT

ANNUAL REPORT

AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

Registered Charity No. 1135067

THE METHODIST CHURCH - MANCHESTER CIRCUIT TRUSTEES’ ANNUAL REPORT AND THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

INDEX

Charity information	1 – 4
Trustees’ report	5 – 8
Examiner’s report	9
Group statement of financial activities	10
Circuit statement of financial activities	11
Group balance sheet	12
Circuit balance sheet	13
Statement of group & circuit cash flows	14
Notes to the financial statements	15–29

THE METHODIST CHURCH - MANCHESTER CIRCUIT CHARITY INFORMATION FOR THE YEAR ENDED 31 AUGUST 2020

TRUSTEES

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Name Appointed by
Mary Adamiak East Didsbury MCC
Suzan Allen Crumpsall MCC/Secretary
Yvonne Anderson Boyd Manley Park MCC
Graham Ascroft Moston MCC
Janet Bailey Hope MCC
Sandra Bailey Circuit Steward
Erimna Bell Whalley Range MCC
Jackie Blackmore Moston MCC
Joan Booth Edge Lane MCC
Pru Cahill Ex Officio
Paula Collins Long St/Safeguarding from 01.09.19
Emily Crellin Crumpsall MCC to 01.03.20
Adrian Curtis Manley Park MCC
Sam Dada Clayton MCC
Chris Davis Circuit Steward
Phil Davis Didsbury MCC
Daphne Dawson Circuit Steward
Jacqueline Denison Trinity Ancoats MCC
Angela Doyle Droylsden MCC
Giselle Du Toit Withington MCC
Andrew Edwards Circuit Steward
Barbara Edwards Moston MCC
Chris Evans Clayton MCC
Helen Fielding Withington MCC
Fiona Fulton Levenshulme MCC
Terence Grant Whalley Range MCC
Janet Green LP Secretary
Christine Grime Long St MCC
Geoff Grime Long St MCC to 01.09.20
Andrew Nicholas Hallett Didsbury MCC
Janet Hardware Edge Lane MCC
Janet Hignett Levenshulme MCC
Alan Hopkins Trinity Ancoats MCC
Ubongabasi Inyang Circuit Steward
Mary Kelsey Northmoor Road MCC to 06.01.20
John Kinsey Levenshulme MCC
Russell Kirby Manley Park MCC
Jackie Kirkby Circuit Steward
Krystyna Kwarciak Ex Officio
Alistair Lowe Ex Officio
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THE METHODIST CHURCH - MANCHESTER CIRCUIT CHARITY INFORMATION FOR THE YEAR ENDED 31 AUGUST 2020

TRUSTEES (continued)

Name		Appointed by
Sarah	Lowe	Ex Officio	to 01.03.20
Arielle	Lufakalyo	Methodist Centre MCC
Lazare	Lufakalyo	Methodist Centre MCC
Yvonne	MaxMacarthy	Northmoor Road MCC	to 06.01.20
Margaret	Morris	ManleyPark MCC
Abigail	Parr	Hope MCC
Sylvia	Pennycooke	WhalleyRange MCC
Ludley	Pinnock	Fallowfield MCC	to 20.05.20
David	Pott	East DidsburyMCC
Angela	Ralph	Circuit Steward
David	Ratchford	LongSt MCC	to 01.09.19
Margaret	Ratchford	LongSt MCC
Sharon	Read	Ex Officio	from 01.09.19
Audrey	Redshaw	Chorlton MCC
Othniel	Reid	WhalleyRange MCC
John	Roberts	Circuit Steward
Julie	Rowbotham	Hope MCC
Sue	Rowe	Ex Officio
Joy	Rulton	Ex Officio
Ian	Rutherford	Ex Officio	from 01.09.19
Doreen	Sanderson	Northmoor Road MCC	to 06.01.20
Barbara	Schofield	WhalleyRange MCC
Alan	Scott	Northmoor Road MCC	to 06.01.20
Helen	Scott	TrinityAncoats MCC	to 13.07.20
Pamela	Sewart	LongSt MCC
John	Shuttleworth	Withington MCC
Andrew	Slim	LongSt MCC
Hilary	Small	Moston MCC
Peter	Smith	Finance Group
Heather	Steward	Withington MCC
Ken	Stokes	Ex Officio
Liz	Stuart	Circuit Steward/Staff Rep
Don	Taylor	Withington MCC
Elva	Towler	Clayton MCC
Bernard	Treves Brown	Circuit Steward
Megan	Warner	Edge Lane MCC
Susan	Watters	Circuit Steward
Jenny	Went	Withington MCC
Caroline	Wickens	Ex Officio
Beverley	Williams	WhalleyRange MCC
Stephen	Williams	Droylsden MCC
Sue	Williams	Ex Officio
Janet	Yarwood	Hope MCC

Key: MCC – Methodist Church Council

THE METHODIST CHURCH - MANCHESTER CIRCUIT CHARITY INFORMATION FOR THE YEAR ENDED 31 AUGUST 2020

CIRCUIT COUNCILand
Circuit Stewards	Rev Dr C Wickens	Superintendent Minister
	Angela Ralph	Chair and Senior Circuit Steward
	Jacqueline Kirkby	Secretary
	Revd Susan Williams	Superintendency Team
	Elizabeth Stuart	Staff Representative
	Revd Joy Rulton	Staff Representative
	Bernard Treves Brown	Treasurer
	Sandra Bailey
	Christine Davis
	Daphne Dawson	from 01/09/2019
	Andrew Edwards
	Ubongabasi Inyang	from 01/09/2019
	John Roberts
	Susan Watters
CIRCUIT OFFICE	Wesley Centre
	Royce Road
	Hulme
	Manchester M15 5BP
MANAGEMENT ACCOUNTANTS	Chittenden Horley Limited
	Chartered Accountants
	456 Chester Road
	Old Trafford
	Manchester M16 9HD
INDEPENDENT EXAMINERS	Christopher Bailey ACA
	Christopher Bailey Accountants (Oldham) Limted
	Chartered Accountants
	Units 10-12, County End Business Centre
	Jackson Street
	Oldham
	Lancashire OL4 4TZ
SOLICITORS	Anthony Collins Solicitors
	134 Edmund Street
	Birmingham B3 2ES
BANKERS	The Co-operative Bank
	PO Box 250
	Delf House
	Southway
	Skelmersdale WN8 6WT
	Unity Trust Bank Plc
	PO Box 7193
	Planetary Road
	Willenhall WV1 9DG
INVESTMENT MANAGERS	Central Finance Board of the Methodist Church
	9 Bonhill Street
	London EC2A 4PE
REGISTERED CHARITY	1135067

THE METHODIST CHURCH - MANCHESTER CIRCUIT TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2020

The Trustees present their Annual Report together with the consolidated financial statements of the charity and its subsidiary, Wesley Limited, for the year ended 31 August 2020.

REPORTING FRAMEWORK

The financial statements comply with the Charities Act 2011, and 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 (FRS102) (effective 1 January 2019), referred to as the Charities SORP (FRS 102) (second edition – October 2019).

OBJECTIVES AND ACTIVITIES

Charitable Objectives

The Circuit shares the same charitable objectives as the rest of the Methodist Church, which are set out as follows:

“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.”

Aims

The Circuit seeks to live out the calling of the Methodist Church, which is summarised thus:

“ The calling of the Methodist Church is to respond to the Gospel of God ’ s love in Christ and to live out its discipleship and mission. Inspired by Our Calling, we aim:

to increase awareness of God’s presence and to celebrate God’s love
to help people to grow and learn as Christians through mutual support and care
to be a good neighbour to people in need and to challenge injustice
to make more followers of Jesus Christ ”

Activities and Public Benefit

The Circuit encourages and supports the Churches within it in the provision of regular public acts of worship open to members of the Church and non-members alike; the provision of sacred space for prayer and contemplation; the teaching of Christianity through sermons, courses and small groups; pastoral work, including visiting the sick and bereaved; the promotion of Christianity through the staging of events and services; the provision of youth clubs, senior citizens’ clubs, men’s meetings and women’s meetings etc. with a Christian ethos; promoting the whole mission of the Church (and aiding social cohesion) through activities for older people, parents and toddlers and other specific needs groups; and supporting other charities in the UK and overseas financially and with prayer.

The aims, objectives and activities of the charity are reviewed annually, and achievements assessed. When reviewing the aims and objectives of the charity and in planning future activities, the Trustees have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission.

Contribution of Volunteers

The Circuit is heavily dependent upon, and extremely grateful for, the contribution of volunteers as it seeks to carry out its objectives. With the exception of ordained members and the lay staff representative, all the other members of the Circuit Council are unpaid volunteers, and the vast majority of the Charity trustees are also volunteers.

THE METHODIST CHURCH - MANCHESTER CIRCUIT TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2020

ACHIEVEMENT AND PERFORMANCE

Manchester Circuit, The Methodist Church: Achievements and Performance, 2019 – 2020

The work of the Manchester Circuit is shaped by the Calling and Priorities of the Methodist Church, and therefore it is appropriate to use these Priorities to shape this review of our activities over the Connexional year 2019 – 2020.

Our Calling and Priorities are set out as follows:

“The calling of the Methodist Church is to respond to the Gospel of God’s love in Christ and to live out its discipleship and mission. Inspired by Our Calling, we aim:

to increase awareness of God’s presence and to celebrate God’s love: worship
to help people to grow and learn as Christians through mutual support and care: learning and caring
to be a good neighbour to people in need and to challenge injustice: service
to make more followers of Jesus Christ: evangelism

Our activities over the year have inevitably been affected by the public health emergency which began in March 2020, and there has been considerable restructuring of our approach in consequence. This has been achieved principally through moving many of our activities on-line via various platforms. In November 2019, we appointed Rachel Humphreys to a lay-worker role as Community Engagement Officer. Her skills have been invaluable in supporting this shift in our practice.

Having noted the impact of the public health emergency, and outlined the foundation of our response to it, this report will now focus on each of the four areas in turn.

A. Worship

The year began with circuit worship to welcome the Rev. Sharon Read and her family. Sharon became minister of Crumpsall, Hope, Long Street and Moston churches and is based in the northern section of the circuit. In December we conducted worship to acknowledge the ministry of our 30 active local preachers, and at the same time we received six new trainees for this role. In January we held a final act of worship to celebrate the life of Northmoor Road Methodist Church, which subsequently closed.

Further planned events were put on hold as the COVID-19 crisis unfolded, but we responded very quickly by moving the majority of our worship on-line. On Easter Sunday we introduced a regular live-streamed service on Sunday evenings via a video conferencing platform. This is normally attended by 80 – 90 people from across the circuit. All of our 19 churches continue to worship in different ways. Some meet face-to-face with social distancing, others meet via video-conferencing or over the telephone, depending on the skills of the people involved. We also circulate printed material for those who are housebound.

B. Learning and Caring

Our work with children and young people has also been reshaped by the public health emergency, and at the moment takes place exclusively online. Several churches have maintained their children’s and youth groups, and under the leadership of the Rev. Sharon Read, along with all our children and families’ lay workers, the circuit has run a number of successful online holiday clubs.

The circuit website, manchestermethodists.org.uk, and our other social media platforms have become a major resource for learning in the circuit as resources and information have been shared. We have seen very substantial growth in the numbers of those using our website, Facebook page and Twitter account month by month. Online Bible study groups have brought together people from different churches across the circuit for theological reflection. Safeguarding training, at Foundation and Advanced levels, continued prior to lock-down.

The need to care for people has rarely been greater. Members and ministers alike have maintained extensive networks of communication, via telephone calls, online coffee mornings, and the like. Church members have supported food banks, the Baby Basket project at Moston, and the work of Befrienders at Central Hall.

Service

The circuit continues to support a number of lay workers whose appointments focus on our social outreach and service. In late 2019, Clare Byfield took up an ecumenical children and families post, working with Methodist and Anglican churches in the Fallowfield and Moss Side areas. Rosie Doyle is now leading the work of the Baby Basket project at Moston. These appointments are funded from circuit resources and the ongoing sale of property contributes substantially to this work.

The circuit undertook a major review of the work of the Wesley Centre ahead of the end of its lease of the building to Wesley Ltd. in June 2021. This has led to a clearer strategic approach, which the circuit meeting affirms, and the intention to use the premises more effectively for service to the community in Hulme and more widely.

Evangelism

Sadly, Nexus, the Circuit’s café in Manchester’s Northern Quarter, had to close its doors due to the public health emergency. Its Board hopes to reopen when the situation allows it and will revisit its strategies for evangelism in preparation for this. For the same reason, we have made rather few new members this year. However, our online worship and learning opportunities have attracted numbers of people for whom church is not a familiar environment and we have been able to engage with them through these new ways of worshipping. There have also been many opportunities to engage with people informally through conversation and prayer.

THE METHODIST CHURCH - MANCHESTER CIRCUIT TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2020

FINANCIAL REVIEW

Overview

The Circuit had a surplus on unrestricted funds, after transfers for the year of £163,483. However, this is chiefly attributable to the receipt of the proceeds of sale of Northmoor Road Church of £186,781 and the balance of its net funds of £1,402. In addition, the Circuit has benefitted from receipt of prior years contribution to a staffing post of £16,012. The underlying position is another deficit of £40,712, which was better than the budgeted result which anticipated using c£60k of reserves.

Clearly the Circuit is unable to continue to operate a deficit budget and during the year the Circuit has sought to implement the outcome of its thorough review of budgets and cashflows, working towards ensuring that all recurring expenditure (including all staff posts) can be funded from current income. The pandemic caused by COVID 19 has impacted on the income of many of the churches in the Circuit and their ability to meet the required level of assessment for 20/21, even calling on their reserves. The Circuit has committed to using the surplus from the sale of property to meet shortfalls in 20/21 and beyond.

Designated funds remain in place to cover property projects where the expenditure is expected to be incurred within the next one to two years.

Wesley Ltd

During the year (due to an administrative oversight since corrected) Wesley Limited did not make any of the scheduled repayments of the loan of £16,140 provided in 2015 to fund the installation of an array of 50 solar panels at the Wesley Centre. The forecast ‘payback period’ for this installation is in the region of seven years, and the loan was therefore scheduled to be repaid over that period. Rental income at the Wesley Centre has risen compared with last year, and although it is reporting a loss of c£5k, this is due to the payment of rent to the Circuit which is computed on the basis of taxable profits which are higher due to timing differences on relief for capital expenditure. Responsibility for the day-to-day management of the Wesley Centre continues to lie with the Circuit’s part-time administrator.

Risk management

The Circuit Meeting continues to develop procedures for identifying and addressing the risks facing the charity. It has already enhanced its financial procedures and, in common with other Churches, has developed robust procedures for safeguarding children, young people and vulnerable adults.

Principal Funding Sources

Contributions from the Churches by way of Circuit Assessment continue to be the main source of funding, accounting for 71% (2019: 68%) of income, excluding proceeds of sale of Northmoor Road.

Investment Policy and Review

The Circuit continues to actively review its investments in the light of immediate cash flow requirements and medium- to long-term plans. The bulk of the Circuit’s Model Trust Fund (representing past proceeds of sales of property) is invested via funds managed by the Central Finance Board of the Methodist Church. As the Circuit expects to draw on the majority of these funds within the next five years, the decision was taken (following consultation with our CFB Relationship Manager) to hold all these in cash and subsequently the investments were disposed of during the year.

The Endowment funds are held in a mixture of CFB managed units and cash.

Other balances are held in current and deposit accounts to enable the proper management of the Circuit’s cashflow.

Reserves

The Circuit seeks to use all its assets for its charitable purposes, whilst continuing to secure and maintain the Circuit’s financial viability. It seeks to set a balanced revenue budget, in order that the ongoing normal costs of ministry, mission and management are met from investment income, grants and donations, and Circuit Assessment. In previous years, a programme of sales of surplus properties allowed the development of a medium-term plan which sought to identify future requirements of management and ministry and to use part of the sale proceeds in supporting those requirements and developing more innovative schemes of mission and ministry. This thinking continues to be a central part of the Circuit’s planning.

Unrestricted Funds

In order to meet its ongoing financial obligations – including the payment of stipends and of District and Connexional assessments quarterly in advance – and to meet unforeseen circumstances, the Circuit needs to maintain sufficient free reserves. These reserves would enable the Circuit to maintain its mission and ministry in the short term if, for whatever reason, third party grants were to be withdrawn or individual Churches encounter difficulties in paying their assessments.

Free reserves are defined as unrestricted reserves less the investment in tangible fixed assets, loans to local churches, designated funds, grant commitments and the long-term investment in Wesley Limited. On the recommendation of Circuit Council, the Circuit Meeting has determined that free reserves should be equivalent to between 3 and 6 months of normal operating costs; this would equate to between £110,000 and £220,000.

As at 31 August 2020, the level of free reserves stood at c£389k, with a commitment to use c£145k to balance the 20/21 budget. The overall level will remain under active review.

THE METHODIST CHURCH - MANCHESTER CIRCUIT TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2020

Going Concern

The Trustees have reviewed the circumstances of the Circuit and consider that adequate resources continue to be available to fund its activities for the foreseeable future. The Trustees are therefore of the view that the charity is a going concern.

CURRENT NEEDS AND FUTURE PLANS

The Circuit continues to develop its forward planning and to assess its future capital funding needs. Within the context of the calling of the Methodist Church (as set out above) the Circuit aims to:

support and encourage each local congregation in mission and ministry;
continue to develop appropriate responses to the pandemic;
build on the process of the circuit review and its outcomes, the circuit is moving forward on the basis of a strategy developed in response to the vision and recommendations emerging from that process.
develop a training culture within the Circuit, encouraging lay preachers in their development, supporting probationers and facilitating the development of presbyters in training;
review and actively manage the Circuit ’ s investments in its financial and property resources, seeking to selectively release resources for mission, ministry and outreach;
work through the Methodist Church stationing procedures to secure the appointment of new ministerial staff as vacancies are identified; and
work ecumenically, especially in supporting and developing established and new Local Ecumenical Partnerships and with particular focus on the Anglican-Methodist Covenant.

STRUCTURE GOVERNANCE AND MANAGEMENT

The Manchester Circuit is part of the Methodist Church of Great Britain and is registered as a charity with number 1135067.

Connected charities

The Churches forming the Circuit are themselves charities and, as they are responsible for their own financial affairs, they are not reported in these statements. The Circuit is also associated with Nexus CCS, a separately registered charity.

A ppointment of Trustees

All ministers, presbyteral and diaconal, stationed in the Circuit by the Conference or who are residing for the purposes of the Stations of the Methodist Church in the Circuit and who are in the active work (that is not retired), are ex-officio members of the Circuit Meeting (the Trustee Body). Other ministers who reside in the Circuit in accordance with the standing orders of the Church (including those who are retired) may choose to be members of the Circuit meeting, and if they have done so they are shown in the list of trustees as ex-officio.

The following are ex officio members of the Circuit Meeting:

Circuit Stewards appointed by the Circuit Meeting Circuit Meeting Secretary appointed by the Circuit Meeting Representatives to District Synod appointed by the Circuit Meeting Local Preachers Secretary appointed by the Local Preachers’ Meeting

Each Church is represented by a Church Steward, the Church Treasurer and representatives appointed by the Church Council in relation to the number of Church members (one representative for every 50 members).

The Circuit Meeting has the power to co-opt other members and has co-opted those members of the Council who are not otherwise members of the Circuit Meeting, some of the lay workers in the Circuit and a representative of the Finance Group.

As at 31 August 2020 there were 74 members of the Circuit Meeting (2019: 82).

Trustee recruitment, induction and training

As outlined above, the appointment of the majority of the members of the Circuit Meeting is outside the control of the Meeting. In appointing the Council and other officers, the Meeting has regard to the balance of skills and gifts that are needed to further the work of the Church. New members of the Council are inducted by the Council with the support of the Superintendency team.

THE METHODIST CHURCH - MANCHESTER CIRCUIT TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2020

Organisation

The Circuit Meeting meets three times a year. The Circuit Council, appointed by the Circuit Meeting, is responsible for acting on behalf of the Circuit Meeting at other times. The Council meets at least six times per year. The Circuit Meeting retains responsibility for setting the mission priorities of the Circuit, the overall strategy to deliver those priorities, the invitation of ministers, the oversight of local churches, the admission of people to the office of Local Preacher, and decisions on formal explorations of calls to ministry and candidates for the ordained ministry.

The Council is assisted in the task of financial oversight by the Circuit Finance Group.

The Methodist Church appoints a minister to be the Superintendent Minister of the Circuit, whose duties are set out in the Standing Orders of the Church. The Circuit has established a Superintendency Team to assist the Superintendent Minister and to provide leadership and cohesion within the Circuit.

Pay and Remuneration

TRUSTEES ’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS

The Trustees are responsible for preparing the Trustees ’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). These require the Trustees to prepare financial statements for each financial year which give a true and fair view of the state 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 Circuit Meeting has:

selected suitable accounting policies and applied them consistently;
observed the methods and principles in the Charities SORP 2015 (FRS 102);
made judgements and estimates that are reasonable and prudent;
stated whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepared the financial statements on the going concern basis

The Circuit Meeting is responsible for keeping adequate 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 applicable regulations. It is 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.

ON BEHALF OF CIRCUIT MEETING

REV DR C WICKENS - SUPERINTENDENT MINISTER

Date: 10/3/2021

INDEPENDENT EXAMINER’S REPORT TO THE MEMBERS OF CIRCUIT MEETING OF THE METHODIST CHURCH - MANCHESTER CIRCUIT FOR THE YEAR ENDED 31 AUGUST 2020

I report to the charity trustees on my examination of the accounts of the charity for the year ended August 31, 2020 which are set out on pages 10 to 29.

Responsibilities and basis of report

As the charity’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 charity’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 the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the Act. I confirm that I am qualified to undertake the examination because I am a 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:

accounting records were not kept in respect of the charity as required by section 130 of the Act; or
the accounts do not accord with those records; or
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 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.

Christopher Bailey A.C.A.

For and on behalf of CHRISTOPHER BAILEY ACCOUNTANTS (OLDHAM) LIMITED Chartered Accountants

Units 10-12 County End Business Centre Jackson Street Springhead Oldham OL4 4TZ Date:

THE METHODIST CHURCH - MANCHESTER CIRCUIT GROUP STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2020

Unrestricted Funds £ 560,403 77,533 59,792 2,753	Restricted Funds £ - 35,846 - 59 35,905 14 30,098	Endowment Funds £ - - - 162	Total 2020 £ 560,403 113,379 59,792 2,974	Total 2019 £ 343,624 106,848 49,831 3,723
700,481		162	736,548	504,026
124,863 497,153		37 -	124,914 527,251	118,554 560,476
622,016 -	30,112 -	37 1,083	652,165 1,083	679,030 6,336
78,465 16,012	5,793 (16,012)	1,208 -	85,466 -	(168,668) -
94,477 2,579,841	(10,219) 21,444	1,208 135,251	85,466 2,736,536	(168,668) 2,905,204
2,674,318	11,225	136,459	2,822,002	2,736,536

The notes on pages 15 to 29 form part of these financial statements.

THE METHODIST CHURCH - MANCHESTER CIRCUIT CIRCUIT STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2020

Unrestricted Funds £ 559,429 77,533 27,820 2,868	Restricted Funds £ - 35,846 - 59 35,905 14 30,098	Endowment Funds £ - - - 162	Total 2020 £ 559,429 113,379 27,820 3,089	Total 2019 £ 343,624 106,848 20,675 3,900
667,650		162	703,717	475,047
18,289 501,890		37 -	18,340 531,988	16,453 564,297
520,179 -	30,112 -	37 1,083	550,328 1,083	580,750 6,336
147,471 16,012	5,793 (16,012)	1,208 -	154,472 -	(99,367) -
163,483 2,442,119	(10,219) 21,444	1,208 135,251	154,472 2,598,814	(99,367) 2,698,181
2,605,602	11,225	136,459	2,753,286	2,598,814

The notes on pages 15 to 29 form part of these financial statements.

THE METHODIST CHURCH - MANCHESTER CIRCUIT GROUP BALANCE SHEET AS AT 31 AUGUST 2020

2020 £ 2,217,568 325,655	2019 £ 97,782 167,635	2019 £ 2,304,209 245,715
2,543,223 - 280,582		2,549,924 - 189,064
	265,417 76,353

2,823,805 1,803		2,738,988 2,452
2,822,002		2,736,536
2,674,318 11,225 136,459		2,579,841 21,444 135,251
2,822,002		2,736,536

The notes on pages 15 to 29 form part of these financial statements.

Approved by the Circuit Meeting and authorised for issue on: March 10 2021

REVD. DR C WICKENS - SUPERINTENDENT MINISTER

THE METHODIST CHURCH - MANCHESTER CIRCUIT CIRCUIT BALANCE SHEET AS AT 31 AUGUST 2020

2020 £ 2,147,689 325,655	2019 £ 117,343 139,750	2019 £ 2,165,324 245,715
2,473,344 2,220 279,525		2,411,039 4,540 185,687
	257,093 71,406

2,755,089 1,803		2,601,266 2,452
2,753,286		2,598,814
2,605,602 11,225 136,459		2,442,119 21,444 135,251
2,753,286		2,598,814

The notes on pages 15 to 29 form part of these financial statements.

Approved by the Circuit Meeting and authorised for issue on: March 10 2021

REVD. DR C WICKENS - SUPERINTENDENT MINISTER

THE METHODIST CHURCH - MANCHESTER CIRCUIT CIRCUIT AND GROUP STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2020

Group 2020 £ 106,864	Group 2019 £ (97,838)	Circuit 2020 £ 119,929	Circuit 2019 £ (103,535)
2,974 - - 109,333 (188,190)	3,723 - (3,480) 60,509 (1,106)	3,089 - - 109,333 (188,190)	3,900 - (3,480) 60,509 (1,106)
(75,883)	59,646	(75,768)	59,823
- (554)	3,480 (474)	- (554)	3,480 (474)
(554)	3,006	(554)	3,006
30,427 167,635	(35,186) 202,821	43,607 139,750	(40,706) 180,456
198,062	167,635	183,357	139,750
198,062	167,635	183,357	139,750
198,062	167,635	183,357	139,750

The notes on pages 15 to 29 form part of these financial statements.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

THE METHODIST CHURCH - MANCHESTER CIRCUIT

1 ACCOUNTING POLICIES

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the Manchester Circuit’s financial statements.

Scope of the financial statements

The financial statements relate to the work of the Circuit, in all aspects.

Basis of preparation

The financial statements have been prepared: under the historic cost convention, as modified by the revaluation of investments (as set out below) through the statement of financial activities; in accordance with the Statement of Recommended Practice – Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) effective January 1 2019 (second edition – October 2019); and FRS102. The results of the wholly owned subsidiary have been consolidated on a line by line basis.

The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The charity constitutes a public benefit entity as defined by FRS102.

The accounts are prepared in £ sterling, the functional currency of the charity and its subsidiary company.

Donated goods

Individual donated goods of a consumable nature valued under £500 such as harvest festival produce are not shown in these financial statements. Those over this amount or of a capital nature are recorded.

Income

Total Incoming Resources as shown in the Statement of Financial Activities represents the net amounts from all sources.

Income is recognised in the accounting period in which it is receivable, except in the following circumstances, when the income is deferred and included in creditors:

The income relates to a future accounting period
A sales invoice has been raised ahead of the work being carried out and the charity is not contractually entitled to the income until the work has been done
Not all the terms and conditions of the grant have been met, including the incurring of expenditure and the grant conditions are such that unspent grant must be refunded

Investment income

Investment income is included in the accounts when receivable, and any gains or losses on revaluation at the year end are shown in the Statement of Financial Activities.

Grants and donations

Grants and donations are included in full in the Statement of Financial Activities other than where grants are deferred to match the income to expenditure over the life of the project.

Grants to local churches

Grants to local churches for property schemes and other purposes are accounted for as liabilities when they receive formal approval by the Circuit Meeting, or the Superintendency team or Council under delegated authority for awards of less than £6,000.

On some occasions the Circuit Meeting will be asked to indicate whether it would approve a property development or building of a new church when the project is still at a development stage and other partners are still being consulted. The Circuit Meeting usually indicates that it would support the investment of the proceeds of sale of any related properties and how much it would be prepared to give in addition. Such amounts are not considered to be binding obligations on the Circuit until such time as a formal scheme is brought forward and approved by the Circuit Meeting.

THE METHODIST CHURCH - MANCHESTER CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1 ACCOUNTING POLICIES (continued)

Other grants payable

Grants awarded to other charitable bodies are accounted for as liabilities in the year in which the award is made. Multi-period grants are accounted for in full in the year awarded where there is a binding commitment to make the future payments.

Designated funds

Where the Circuit has agreed to use its reserves to meet revenue costs or to meet future capital costs it has designated the funds within unrestricted reserves. It also makes provision in this way when it has indicated its support for a local church building scheme but no actual liability has yet been created.

Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Costs of raising funds

including those associated with fundraising activities, managing investments and commercial trading by the subsidiary company.

Charitable activities costs of undertaking the work of the charity.

The charity is not registered for VAT and cannot recover any input tax charged. Costs are stated inclusive of VAT where charged. The subsidiary is registered for VAT and can recover all input tax charged. Costs are stated exclusive of VAT where charged.

Allocation of support costs

Support costs are those functions which assist the work of the charity either by supporting the delivery of charitable activities or by supporting the generation of funds. They include back office functions, staff costs and professional fees. The basis of allocations is set out in note 9.

Fixed assets and depreciation

Fixed assets are shown at cost to the Circuit, with the exception of the manses and other property assets. These have been included at the Trustees’ valuation less any levy payable to the Connexional Advance and Priority Fund (“CAPF”) where there is no replacement scheme for the assets, as permitted under the SoRP, when assets not previously in the balance sheet are capitalised. Assets costing less than £1,000 are written off as revenue expenditure in the year of acquisition.

Depreciation is provided to write off the cost or valuation less the estimated residual value of tangible fixed assets by equal instalments over their estimated useful economic lives as follows:

Freehold buildings	-	1% per annum from later of the date of acquisition or 1/09/14
Leasehold properties	-	1% per annum from later of the date of acquisition or 1/09/14
Rossett property improvements	-	2.5% per annum on cost
Furniture and fittings	-	25% per annum on cost
Computer equipment	-	33% per annum on cost

Freehold land is not depreciated. Fixed asset disposal proceeds are reported net of any levy payable to the CAPF.

THE METHODIST CHURCH - MANCHESTER CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1 ACCOUNTING POLICIES (continued)

Taxation

The Manchester Circuit is exempt from Corporation Tax by reason of its charitable status to the extent that income and gains are applicable and applied to charitable purposes only. Income tax suffered on deeds of covenant and gift aid or investment income is reclaimed in full.

Investments, gains and losses

Fixed asset investments are a form of basic financial instrument and are initially recorded at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The SoFA includes the net gains and losses arising on revaluation and on disposals throughout the year.

Gains and losses on investments are taken to the Statement of Financial Activities as they arise. Realised gains and losses are calculated as the difference between sale proceeds (net of transaction costs) and the opening carrying value or cost, if acquired during the year. Unrealised gains and losses are calculated on the difference between opening and closing fair values.

Certain investments are held and incorporated in the Balance Sheet that are restricted to specific projects. These are disclosed in note 14.

Financial instruments

The charity has only basic financial instruments which are initially recorded at cost, and with the exception of investments (as set out above) subsequently measured at their settlement value.

Pension contributions

The Circuit participates in the following pension fund:

Methodist Ministers’ Pension Fund

The Circuit is a member of the Connexional pension scheme (MMPS) which covers presbyters and deacons of the Methodist Church. The contribution rates are set each year by the Methodist Conference, and for the year under review the employer contributions were 26.9% (2019: 26.9%) of stipend.

The MMPS is a multi-employer scheme, and in accordance with the guidance issued by the Charity Commission, the Circuit accounts for those contributions as if it were a defined contribution scheme. It has done so because it is unable to identify its share of the underlying assets and liabilities on a consistent and reasonable basis. Contributions are charged to the SoFA in the period in which they are payable.

Lay employees’

The Circuit operates a defined contribution pension fund for its lay employees and unless they have opted out, pays employer’s contribution of 6% matched by employees’ contributions of 2%, in accordance with the standing orders of the Methodist Church.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

THE METHODIST CHURCH - MANCHESTER CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

Unrestricted	2020 Restricted/ endowment	Total	Unrestricted	2019 Restricted/ endowment	Total
£ 368,471 2,775 186,781 1,402	£ - - - -	£ 368,471 2,775 186,781 1,402	£ 343,172 452 - -	£ - - - -	£ *343,172* *452* - -
559,429 974	- -	559,429 974	343,624 -	- -	*343,624* -
560,403	-	560,403	343,624	-	343,624
	- 35,846 -	73,822 35,846 3,711	71,930 - 1,101	- 33,817 -	*71,930* *33,817* *1,101*
77,533	35,846	113,379	73,031	33,817	*106,848*
22,102 5,681 37	- - -	22,102 5,681 37 27,820 42,390 (10,418)	18,258 2,417 -	- - -	*18,258* *2,417* -
27,820 42,390 (10,418)	- - -		20,675 35,394 (6,238)	- - -	*20,675* *35,394* *(6,238)*
59,792	-	59,792	49,831	-	*49,831*
	221 - -	2,655 115 319	2,694 177 812	217 - -	*2,911* *177* *812*
2,868 (115)	221 -	3,089 (115)	3,683 (177)	217 -	*3,900* *(177)*
2,753	221	2,974	3,506	217	*3,723*

THE METHODIST CHURCH - MANCHESTER CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

6 SUBSIDIARY COMPANY - WESLEY LTD

SUBSIDIARY COMPANY - WESLEY LTD
Turnover Administration costs Amortisation of capital grants HMRC - CJRS grant Interest payable & similar charges Profit/(loss) on ordinary activities before tax Taxation Profit/(loss) after tax Fixed assets Current assets Creditors due in one year Creditors due in more than one year	2020 £ 42,390 (112,255) 63,589 974 (115) (5,417) - (5,417) 69,879 18,783 (81,176) (2,220) 5,266	2019 £ 35,394 (104,518) 63,589 - (177)
		(5,712) -
		(5,712)
		138,885 30,029 (90,241) (67,990)
		10,683

The Manchester Circuit owns the whole of the issued share capital of Wesley Limited.

On consolidation the accounting treatment of capital grants (included in Wesley Ltd accounts within creditors) is aligned with that of the Circuit as a charity. Capital grants are treated as part of reserves and the release to the profit and loss account in Wesley's accounts is eliminated.

Capital grants included in creditors are analysed as follows:

Due within one year Due after more than one year	63,451 - 63,451	63,589 63,450
		127,039

On consolidation the management charges and rent payable by Wesley to the Circuit of £5,681 (2019 - £2,417), the interest payable by Wesley Ltd to the Circuit of £115 (2019 £177) and the rent payable by the Circuit to Wesley of £4,737 (2019 - £3,821) are eliminated.

7 COSTS OF GENERATING FUNDS

COSTS OF GENERATING FUNDS
Unrestricted £ Investment management charges 440 Agents & other fees re rental income 7,364 Depreciation property rented out 5,784 Support costs 4,701 *Total for Circuit* 18,289 Subsidiary costs 112,370 Eliminated on consolidation (5,796) *Total for Group* 124,863	Unrestricted	2020 Restricted/ endowment	Total	Unrestricted	2019 Restricted/ endowment	Total
		£ 51 - - -	£ 491 7,364 5,784 4,701	£ 546 6,796 1,337 7,723	£ 51 - - -	£ *597* *6,796* *1,337* *7,723*
	18,289 112,370 (5,796)	51 - -	18,340 112,370 (5,796)	16,402 104,695 (2,594)	51 - -	*16,453* *104,695* *(2,594)*
	124,863	51	124,914	118,503	51	*118,554*

THE METHODIST CHURCH - MANCHESTER CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

2020 Unrestricted	Restricted	Total	2019 Unrestricted	Restricted	Total
£ 254,673 10,952 10,193 20,000 4,000 41,755 16,891 84,260 2,530 - 11,851 44,785	£ 25,098 - - 5,000 - - - - - - - -	£ 279,771 10,952 10,193 25,000 4,000 41,755 16,891 84,260 2,530 - 11,851 44,785	£ 251,202 13,303 - 20,000 - 58,989 13,453 87,987 5,509 - 15,837 74,164	£ 18,553 - - 5,000 - - - - - 300 - -	£ *269,755* *13,303* - *25,000* - *58,989* *13,453* *87,987* *5,509* *300* *15,837* *74,164*
501,890 (4,737)	30,098 -	531,988 (4,737)	540,444 (3,821)	23,853 -	*564,297* *(3,821)*
497,153	30,098	527,251	536,623	23,853	*560,476*

9 SUPPORT AND GOVERNANCE COSTS

Support costs Staff costs Office costs Professional costs Governance costs External scrutiny	Fundraising £ 1,197 2,371 1,133	Charitable £ 10,769 21,336 10,200	Total £ 11,966 23,707 11,333	Fundraising £ 1,412 2,727 3,584	Charitable Total £ £ 12,707 *14,119* 24,542 *27,269* 32,257 *35,841* 69,506 *77,229* 4,658 *4,658* 74,164 *81,887*
	4,701 -	42,305 2,480	47,006 2,480	7,723 -
	4,701	44,785	49,486	7,723

Staff costs are allocated on the basis of estimate of time spent and other costs on the estimate of resources used.

Unrestricted 10 GAINS AND LOSSES ON INVESTMENTS funds £ Unrealised gains/(losses) on revaluation of fixed asset investments - Realised gain on disposal of investments - Realised gain on disposal of assets held for sale - - Unrestricted funds £ Unrealised gains/(losses) on revaluation of fixed asset investments - Realised loss on disposal of investments - Unrealised gain on disposal of assets held for sale - -	Restricted Funds £ - - -	Endowment funds £ 1,083 - -	2020 £ 1,083 - -
-	-	1,083	1,083
	Restricted Funds £ - - -	Endowment funds £ 6,336 - -	2019 £ *6,336* - -
-	-	6,336	*6,336*

THE METHODIST CHURCH - MANCHESTER CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

11 GROUP NET INCOMING RESOURCES AFTER TRANSFERS This is stated after charging/(crediting): Auditors remuneration Independent examiners' fees Depreciation of fixed assets Operating lease rentals Trustees' remuneration as trustees Trustees' expenses as trustees 12 STAFF INFORMATION a Staff costs Stipends and salaries Apprenticeship levy Pension contributions - Methodist Ministers Scheme Pension contributions - other Employer's NI contributions	2020 £ 80 2,400 86,641 - - - 2020 £ 225,584 842 48,468 1,432 15,411 291,737	2019 £ 4,658 - 86,963 1,641 - -
		2019 £ 220,799 1,285 45,509 1,920 14,361
		283,874

No staff member was paid more than £60,000 p.a. in either year.

b Key management personnel

The key management of the charity comprise the trustees, which includes the ordained members of staff who are ex-officio members of the Circuit Meeting but do not receive any payment specifically for acting as trustees.

The other trustees do not receive any remuneration for their services.

The total remuneration benefits of the key management are: Stipends	£ 257,508	£ 241,339

As explained in note 27, certain other Circuit employees are also members of the Circuit Meeting but their remuneration is not included above as their membership of the Circuit Meeting is not part of their duties as employees, but rather they have been appointed by the churches of which they are members as representatives.

c Average staff numbers

The average number of members of staff of the charity was as follows:-

Ordained staff (office holders not employees) Lay employees	2020 2019 Average Average number number 7.0 9.0 5.0 5.0 12.0 14.0

THE METHODIST CHURCH - MANCHESTER CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

13 TANGIBLE FIXED ASSETS

Long Fixtures Freehold land leasehold Property Fittings & & buildings properties improvements Equipment £ £ £ £ 1,663,203 572,000 876,079 36,964 - - - - 1,663,203 572,000 876,079 36,964 50,158 23,020 741,900 28,959 11,009 5,720 66,988 2,924 61,167 28,740 808,888 31,883 1,602,036 543,260 67,191 5,081 1,613,045 548,980 134,179 8,005 1,663,203 572,000 - 19,012 - - - - 1,663,203 572,000 - 19,012 50,158 23,020 - 15,713 11,009 5,720 - 906 61,167 28,740 - 16,619 1,602,036 543,260 - 2,393 1,613,045 548,980 - 3,299	Long Fixtures Freehold land leasehold Property Fittings & & buildings properties improvements Equipment £ £ £ £ 1,663,203 572,000 876,079 36,964 - - - - 1,663,203 572,000 876,079 36,964 50,158 23,020 741,900 28,959 11,009 5,720 66,988 2,924 61,167 28,740 808,888 31,883 1,602,036 543,260 67,191 5,081 1,613,045 548,980 134,179 8,005 1,663,203 572,000 - 19,012 - - - - 1,663,203 572,000 - 19,012 50,158 23,020 - 15,713 11,009 5,720 - 906 61,167 28,740 - 16,619 1,602,036 543,260 - 2,393 1,613,045 548,980 - 3,299	Long Fixtures Freehold land leasehold Property Fittings & & buildings properties improvements Equipment £ £ £ £ 1,663,203 572,000 876,079 36,964 - - - - 1,663,203 572,000 876,079 36,964 50,158 23,020 741,900 28,959 11,009 5,720 66,988 2,924 61,167 28,740 808,888 31,883 1,602,036 543,260 67,191 5,081 1,613,045 548,980 134,179 8,005 1,663,203 572,000 - 19,012 - - - - 1,663,203 572,000 - 19,012 50,158 23,020 - 15,713 11,009 5,720 - 906 61,167 28,740 - 16,619 1,602,036 543,260 - 2,393 1,613,045 548,980 - 3,299	Long Fixtures Freehold land leasehold Property Fittings & & buildings properties improvements Equipment £ £ £ £ 1,663,203 572,000 876,079 36,964 - - - - 1,663,203 572,000 876,079 36,964 50,158 23,020 741,900 28,959 11,009 5,720 66,988 2,924 61,167 28,740 808,888 31,883 1,602,036 543,260 67,191 5,081 1,613,045 548,980 134,179 8,005 1,663,203 572,000 - 19,012 - - - - 1,663,203 572,000 - 19,012 50,158 23,020 - 15,713 11,009 5,720 - 906 61,167 28,740 - 16,619 1,602,036 543,260 - 2,393 1,613,045 548,980 - 3,299	Total £ 3,148,246 -
1,663,203		876,079	36,964	3,148,246
50,158 11,009		741,900 66,988	28,959 2,924	844,037 86,641
61,167		808,888	31,883	930,678
1,602,036		67,191	5,081	2,217,568
1,613,045		134,179	8,005	2,304,209
1,663,203 -		- -	19,012 - 19,012 15,713 906 16,619	2,254,215 -
1,663,203	572,000	-		2,254,215
50,158 11,009	23,020 5,720	- -		88,891 17,635
61,167	28,740	-		106,526
1,602,036	543,260	-	2,393	2,147,689
1,613,045	548,980	-	3,299	2,165,324

The net book value of equipment held on finance leases was £2,088 (2019 - £2,784).

THE METHODIST CHURCH - MANCHESTER CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

14 FIXED ASSET INVESTMENTS Market value brought forward Income re-invested Additions at cost Disposals at carrying value Net gain/(loss) on revaluation Market value carried forward *Investments at fair value comprise:* CFB Managed funds Cash held within investment portfolio	2020 £ 245,715 1,409 186,781 (109,333) 1,083 325,655 117,456 208,199 325,655	2019 £ 298,782 1,106 - (60,509) 6,336
		245,715
		116,372 129,343
		245,715

Unrestricted funds 2020 2019 £ £ 103,608 163,176 1,240 941 186,781 - (109,333) (60,509) - -	Unrestricted funds 2020 2019 £ £ 103,608 163,176 1,240 941 186,781 - (109,333) (60,509) - -	Restricted funds 2020 2019 £ £ 6,856 6,812 45 44 - - - - - - 6,901 6,856 - - 6,901 6,856 6,901 6,856	Restricted funds 2020 2019 £ £ 6,856 6,812 45 44 - - - - - - 6,901 6,856 - - 6,901 6,856 6,901 6,856	Endowment funds 2020 2019 £ £ 135,251 128,794 124 121 - - - - 1,083 6,336 136,458 135,251 117,456 116,372 19,002 18,879 136,458 135,251	Endowment funds 2020 2019 £ £ 135,251 128,794 124 121 - - - - 1,083 6,336 136,458 135,251 117,456 116,372 19,002 18,879 136,458 135,251
182,296	103,608	6,901	6,856	136,458	135,251
- 182,296	- 103,608	- 6,901	- 6,856	117,456 19,002	116,372 18,879
182,296	103,608	6,901	6,856	136,458	135,251

15 DEBTORS DUE IN MORE THAN ONE YEAR Loan to Wesley Limited	Group 2020 £ -	Group 2019 £ -	Circuit 2020 £ 2,220	Circuit 2019 £ 4,540
	-	-	2,220	4,540

THE METHODIST CHURCH - MANCHESTER CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

16 DEBTORS Trade debtors Loans to Circuit Churches Amounts due from Wesley Limited Prepayments & other debtors	Group 2020 £ 4,007 17,208 154 111,720	Group 2019 £ 1,581 17,208 - 78,993	Circuit 2020 £ - 17,208 12,382 111,650	Circuit 2019 £ - 17,208 21,705 78,430
	133,089	97,782	141,240	117,343

Included in amounts due from Wesley Ltd above is £2,320 in respect of loan repayments due within one year.

17 CREDITORS falling due within one year Assessments in advance Social security and other taxes Finance lease creditor Creditors & accruals	34,190 1,733 649 13,997	48,013 1,313 554 26,473	34,190 417 649 9,816	48,013 582 554 22,257
	50,569	76,353	45,072	71,406

In 2017/18, the Circuit opened a second account with CFB and in 18/19 a second current account with Unity trust to hold the monies and make payments for Hope Methodist Church's building project. At the year end these funds amounted to c£21k (2019 -c£40k). The bank balances, the transactions and the liability to Hope are not shown in the Circuit accounts. Interest earned on the balance held and bank charges incurred have been wholly attributed to Hope.

18 CREDITORS falling due in more than on year

Finance lease creditor	1,803	2,452	1,803	2,452
	1,803	2,452	1,803	2,452

THE METHODIST CHURCH - MANCHESTER CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

19 STATEMENT OF FUNDS

2019/20 Income Expenditure gains & loses Transfers 31/08/2020 £ £ £ £ £ 700,481 (611,823) - 16,012 2,606,382 - (10,193) - - 67,936	700,481 (622,016) - 16,012 2,674,318	35,905 (30,112) - (16,012) 11,225 162 (37) 1,083 - 136,459 736,548 (652,165) 1,083 - 2,822,002	136,459	2,822,002
			-	-
			1,083	1,083
			(37)	(652,165)
b/f and c/f 31/08/2019 01/09/2019 £ 2,501,712 78,129	2,579,841	21,444	135,251	2,736,536
2018/19 01/09/2018 Income Expenditure Gains & loses Transfers £ £ £ £ £ 2,663,055 469,992 (631,335) - - 101,920 - (23,791) - -	2,764,975 469,992 (655,126) - -	11,436 33,875 (23,867) - - 128,793 159 (37) 6,336 - 2,905,204 504,026 (679,030) 6,336 -	-	-
			6,336	6,336

THE METHODIST CHURCH - MANCHESTER CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

19 STATEMENT OF FUNDS (continued)

2019/20 Income Expenditure gains & loses Transfers 31/08/2020 £ £ £ £ £ 667,650 (509,986) - 16,012 2,537,666 - (10,193) - - 67,936	2,605,602	- 478 2,718 1,128 6,901	11,225	117,455 19,004	136,459	2,753,286
	16,012	(16,012) - - - -	(16,012)	- -	-	-
	-	- - - - -	-	1,083 -	1,083	1,083
	(520,179)	(30,098) - - (14)	(30,112)	- (37)	(37)	(550,328)
	667,650	35,846 - - - 59	35,905	- 162	162	703,717
b/f and c/f 31/08/2019 01/09/2019 £ 2,363,990 78,129	2,442,119	10,264 478 2,718 1,128 6,856	21,444	116,372 18,879	135,251	2,598,814
2018/19 01/09/2018 Income Expenditure Gains & loses Transfers £ £ £ £ £ 2,456,032 441,013 (533,055) - - 101,920 - (23,791) - 2,557,952 441,013 (556,846) - - - 33,817 (23,553) - - 478 - - - - 3,018 - (300) - - 1,128 - - - - 6,812 58 (14) - - 11,436 33,875 (23,867) - - 110,036 - - 6,336 - 18,757 159 (37) - - 128,793 159 (37) 6,336 - 2,698,181 475,047 (580,750) 6,336 -	-	- - - - -	-	- -	-	-
	-	- - - - -	-	6,336 -	6,336	6,336
	(556,846)	(23,553) - (300) - (14)	(23,867)	- (37)	(37)	(580,750)
	441,013	33,817 - - - 58	33,875	- 159	159	475,047
	2,557,952	- 478 3,018 1,128 6,812	11,436	110,036 18,757	128,793	2,698,181

THE METHODIST CHURCH - MANCHESTER CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

20 ANALYSIS OF COMPANY NET ASSETS BETWEEN FUNDS

Fund balances at August 31 2020 are represented by:-

Unrestricted General Designated Funds Funds	Unrestricted General Designated Funds Funds	Restricted Funds	Endowment Funds	Total
£ 2,147,689 122,295 2,220 267,265 (1,803)	£ - 60,000 - 7,936 -	£ - 6,901 - 4,324 -	£ - 136,459 - - -	£ 2,147,689 325,655 2,220 279,525 (1,803)
2,537,666	67,936	11,225	136,459	2,753,286
	- 36,209 - 41,920	- 6,856 - 14,588	- 135,251 - -	*2,165,324* *245,715* *4,540* *185,687*
2,366,442	78,129	21,444	135,251	*2,601,266*
	Group 2020 £ 325,655	Group 2019 £ 245,715	Circuit 2020 £ 325,655	Circuit 2019 £ 245,715
	331,151	265,417	326,817	261,633
	(52,372)	(78,805)	(46,875)	(73,858)

Financial assets measured at amortised cost comprise: cash at bank and in hand; income receivable and other debtors; and prepayments.

Financial liabilities measured at amortised cost comprise: trade creditors; other taxes and social security; accruals; and deferred income.

22 TAXATION

The Circuit is a registered charity and is entitled to claim annual exemption from UK corporation tax.

23 CAPITAL COMMITMENTS

There were no capital commitments authorised and contacted for at the end of the year (2019 £Nil).

THE METHODIST CHURCH - MANCHESTER CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

24 LEASE COMMITMENTS

Finance lease commitments

The Circuit had the following commitments under finance leases:

Not later than one year Later than one year and not later than five years Less interest charges Per creditors notes	928 928 2,089 3,017 3,017 3,945 (565) (939) 2,452 3,006

25 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASHFLOW FROM OPERATING ACTIVITIES Group Group Circuit 2020 2019 2020 £ £ £ Net income/(expenditure) before transfers 85,466 (168,668) 154,472 Add back depreciation on fixed assets 86,641 86,962 17,635 Deduct/(add) unrealised gains/(losses) on investments (1,083) (6,336) (1,083) Deduct interest income shown in investing activities (2,974) (3,723) (3,089) Deduct profit/add back losses on disposals of FA - - - Decrease/(increase) in debtors (35,307) 5,041 (21,577) Increase/(decrease) in creditors (25,879) (11,114) (26,429) Net cash generated from/(used in) operating activities 106,864 (97,838) 119,929	25 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASHFLOW FROM OPERATING ACTIVITIES Group Group Circuit 2020 2019 2020 £ £ £ Net income/(expenditure) before transfers 85,466 (168,668) 154,472 Add back depreciation on fixed assets 86,641 86,962 17,635 Deduct/(add) unrealised gains/(losses) on investments (1,083) (6,336) (1,083) Deduct interest income shown in investing activities (2,974) (3,723) (3,089) Deduct profit/add back losses on disposals of FA - - - Decrease/(increase) in debtors (35,307) 5,041 (21,577) Increase/(decrease) in creditors (25,879) (11,114) (26,429) Net cash generated from/(used in) operating activities 106,864 (97,838) 119,929	25 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASHFLOW FROM OPERATING ACTIVITIES Group Group Circuit 2020 2019 2020 £ £ £ Net income/(expenditure) before transfers 85,466 (168,668) 154,472 Add back depreciation on fixed assets 86,641 86,962 17,635 Deduct/(add) unrealised gains/(losses) on investments (1,083) (6,336) (1,083) Deduct interest income shown in investing activities (2,974) (3,723) (3,089) Deduct profit/add back losses on disposals of FA - - - Decrease/(increase) in debtors (35,307) 5,041 (21,577) Increase/(decrease) in creditors (25,879) (11,114) (26,429) Net cash generated from/(used in) operating activities 106,864 (97,838) 119,929	25 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASHFLOW FROM OPERATING ACTIVITIES Group Group Circuit 2020 2019 2020 £ £ £ Net income/(expenditure) before transfers 85,466 (168,668) 154,472 Add back depreciation on fixed assets 86,641 86,962 17,635 Deduct/(add) unrealised gains/(losses) on investments (1,083) (6,336) (1,083) Deduct interest income shown in investing activities (2,974) (3,723) (3,089) Deduct profit/add back losses on disposals of FA - - - Decrease/(increase) in debtors (35,307) 5,041 (21,577) Increase/(decrease) in creditors (25,879) (11,114) (26,429) Net cash generated from/(used in) operating activities 106,864 (97,838) 119,929	Circuit 2019 £ (99,367) 17,661 (6,336) (3,900) - (5,162) (6,431)
	106,864	(97,838)	119,929	(103,535)

26 NET MOVEMENT IN DEBT

NET MOVEMENT IN DEBT
Group Cash and cash equivalents Cash at bank and in hand Debt Finance lease obligations Cash and cash equivalents net of debt Charity Cash and cash equivalents Cash at bank and in hand Debt Finance lease obligations Cash and cash equivalents net of debt	At 31/8/19 £ 167,635	cashflows £ 30,427	lease repaid £ -	other non cash £ -	at 31/08/20 £ 198,062
	3,006	(554)	-	-	2,452
	164,629	43,607	-	-	195,610
	139,750				183,357
	3,006	(554)	-	-	2,452
	136,744				180,905

There were no: acquisitions or disposals of subsidiaries; foreign exchange movements; or market value changes in the period

THE METHODIST CHURCH - MANCHESTER CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

27 RELATED PARTY TRANSACTIONS

Ministers

Stipends and allowances for presbyters and deacons (collectively ministers) are set annually by the Methodist Conference, and the Circuit is responsible for meeting those costs for all ministers appointed by the Conference to the Circuit. Details of stipends paid to ministers who are members of the Circuit meeting are as follows. The following received the basic stipend (£24,842; 2019: £24,168): Deacon Pru Cahill, Revd Krystyna Kwarciak, Rev Sharon Read (from 1/09/19), Revd. Joy Rulton, Revd. Ken Stokes, Revd. Caroline Wickens.

And the following ministers received half stipend in 2018/19 and 2019/20: Revd Al Lowe, Revd Sarah Lowe (until her death), Revd Sue Williams;

And the Revd John Foster received a stipend of £483 (2019: £5,800) for part time working.

All of whom, except for Revd Sue Williams and Revd John Foster, were provided with living accommodation as required by the church’s Standing Orders. The Revd Al Lowe and his wife, Revd Sarah Lowe shared a manse.

In addition, the Revd Ian Rutherford, who is the City Centre Minister and receives his stipend from the Manchester and Stockport District, is provided with accommodation as part of the partnership arrangement with the District.

In addition to the basic stipend, the Connexionally agreed Superintendent Minister’s allowance (£2,485; 2019: £1,813) was paid to Revd Caroline Wickens in 2018/19 and 2019/20.

Other ministers who are resident in the Circuit, for the purposes of the Methodist stations, but not in Circuit appointments or without appointment are also members of the Circuit Meeting but do not receive payment or accommodation from the Circuit, except for preaching fees and expenses as set out above.

Lay employees

The following members of the Circuit Meeting were also employees of the Circuit and were in receipt of salaries for the work they undertook in the capacities indicated. They do not receive payment for acting as trustees:

Name	Position	2020	2019
Angela Doyle	Circuit Administrator	£10,531	£9,089
Liz Stuart	Lay employee	£8,879	£11,404

Ms Doyle was also an employee of Wesley Limited during the year and was in receipt of a salary of £2,327 (2019: £1,049) for the work which she undertook as Company Secretary and Administrator.

Other payments

Andrew Slim, a member of the Circuit meeting has provided property advice services through his limited company Andrew Slim Limited, in the ordinary course of business. He took no part in the decision to appoint his company and it was engaged on normal commercial terms. Payments in the 2019/20 amounted to £4,807 (2019: £5,450).

S Watters, a member of the Circuit meeting and of the Circuit Council, was employed by Wesley Ltd to produce a business plan. She took no part in the decision to appoint her, and she received a salary of £636 for this work (2019: £nil).

Wesley Limited

Revd Caroline Wickens and Revd Sue Williams, members of the Circuit Meeting and therefore trustees of the charity, were also directors of Wesley Limited (a wholly owned subsidiary of Manchester Circuit) during the year. In 2015, Manchester Circuit loaned Wesley Limited £16,140 to enable it to install solar panels at the Wesley Centre; the loan is repayable in March 2022 by half yearly instalments which commenced in September 2015. Interest due from Wesley Limited on this loan totalled £115.

During the year, Manchester Circuit paid rent (including VAT) to Wesley Limited of £4,737 (2019: £4,585).

Methodist Chapel Aid Limited

Andrew Slim, a member of the Circuit Meeting, was a non-executive director of Methodist Chapel Aid Limited throughout the year. As at 31 August 2019, Methodist Chapel Aid Limited held funds on behalf of the Circuit totalling £13,952 (31/08/19 - £13,883).

Chittenden Horley Ltd

Chittenden Horley Ltd, an accounting practice of which Mr Peter Smith, a member of the Circuit Meeting, is a director and minority shareholder, provides accounting services to Wesley Ltd and The Manchester Circuit. Mr Smith took no part in the decision to appoint his firm. During the year Chittenden Horley received fees as follows:

Manchester Circuit £2,956 (2018/19 – £3,469) Wesley Ltd £1,099 (2018/19 - £2,325).