2022-08-31-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 2022

Registered Charity No. 1135067

THE METHODIST CHURCH - MANCHESTER CIRCUIT TRUSTEES’ ANNUAL REPORT AND THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

INDEX

Charity information	1 – 3
Trustees’ report	4 – 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 2022

TRUSTEES

Name		Appointed by
Mary	Adamiak	East Didsbury MCC
Michael	Adedapo	Methodist Centre MCC	to 01.09.21
Suzan	Allen	Crumpsall MCC/Secretary
Yvonne	Anderson Boyd	Manley Park MCC
Papa	Andoh-Kweku	Withington 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	to 01.09.22
Sharif	Bukuru	Methodist Centre MCC	from 01.09.21
Pru	Cahill	Ex Officio
Linda	Carroll	Edge Lane MCC
Paula	Collins	Long St/Safeguarding
Adrian	Curtis	Manley Park MCC
Sam	Dada	Clayton MCC
Chris	Davis	Circuit Steward
Phil	Davis	Didsbury MCC
Daphne	Dawson	Circuit Steward
Angela	Doyle	Droylsden MCC
Andrew	Edwards	Circuit Steward
Chris	Evans	Clayton MCC
Helen	Fielding	Withington MCC
Fiona	Fulton	Levenshulme MCC
Rob	Fullen	Crumpsall MCC	from 15.03.22
Terence	Grant	Whalley Range MCC
Janet	Green	LP Secretary
Christine	Grime	Long St MCC
Andrew Nicholas	Hallett	Didsbury MCC
Janet	Hardware	Edge Lane MCC	to 01.09.22
Janet	Hignett	Levenshulme MCC
Ubongabasi	Inyang	Circuit Steward
Robert	Johnson	Edge Lane with Clayton MCC	from 01.01.23
John	Kinsey	Levenshulme MCC
Russell	Kirby	Manley Park MCC
Krystyna	Kwarciak	Ex Officio	to 31.08.22
Lazare	Lufakalyo	Methodist Centre MCC
Toyin	Makinde	Crumpsall MCC	to 07.12.21
Eva	Manley	co-opted per CW	from 14.06.22
Margaret	Morris	Manley Park MCC
Elizabeth	Moyo	Moston MCC	to 17.09.22
Nick	Palfreyman	Withington MCC	from 02.08.22
Abigail	Parr	Hope MCC

THE METHODIST CHURCH - MANCHESTER CIRCUIT CHARITY INFORMATION FOR THE YEAR ENDED 31 AUGUST 2022

TRUSTEES (continued)

Name		Appointed by
Sylvia	Pennycooke	Whalley Range MCC
David	Pott	East Didsbury MCC
Angela	Ralph	Circuit Steward
Margaret	Ratchford	Long St MCC	to 01.09.22
Sharon	Read	Ex Officio
Audrey	Redshaw	Chorlton MCC
Othniel	Reid	Whalley Range MCC
John	Roberts	Circuit Steward
Julie	Rowbotham	Hope MCC
Sue	Rowe	Ex Officio
Joy	Rulton	Ex Officio
Ian	Rutherford	Ex Officio
Barbara	Schofield	Whalley Range MCC
Pamela	Sewart	Long St MCC
John	Shuttleworth	Withington MCC
Andrew	Slim	Long St 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	to 02.08.22
Elva	Towler	Clayton MCC
Bernard	Treves Brown	Circuit Steward
Susan	Watters	Circuit Steward
Jenny	Went	Withington MCC
Caroline	Wickens	Ex Officio
Beverley	Williams	Whalley Range 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 2022

CIRCUIT COUNCIL and Circuit Stewards

	Name	Appointment/cessation	Position
Revd Dr C Wickens			Superintendent Minister
Daphne Dawson			Chair and Senior Circuit Steward
Christine Davis			Secretary
Bernard Treves Brown			Treasurer
Yvonne Anderson Boyd
Sandra Bailey
Andrew Edwards
Ubongabasi Inyang		Resigned
John Roberts
Susan Watters
Revd Sharon Read			Superintendency Team
Paula Collins			Staff Representative
Revd Joy Rulton			Staff Representative
CIRCUIT OFFICE		The Wesley Centre
		Royce Road
		Hulme
		Manchester M15 5BP
MANAGEMENT	ACCOUNTANTS	Peter Smith Accountancy Services
		Chartered Accountants
		9 Polruan Road
		Chorlton-cum-Hardy
		Manchester M21 9NR
INDEPENDENT EXAMINER		Jane Cooksey FCCA
		Jane Cooksey Ltd
		15/16 Boarshurst Bus. Park
		Boarshurst Lane
		Greenfield
		Oldham OL3 7ER
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 2022

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 2022.

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 2022

ACHIEVEMENT AND PERFORMANCE

Manchester Circuit, The Methodist Church: Achievements and Performance, 2021 - 2022

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 2021 - 2022

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

It is good to report that the past year has seen the re-establishment of more familiar patterns of church life. All churches are now offering a regular and varied range of public worship face-to-face, subject to ongoing risk assessment. Groups for children, young people and adults are gradually recovering, and many churches are finding that their facilities are increasingly in demand for use by a wide range of community groups. We also continue to respond to the ongoing impact of the pandemic. Churches still offer on line activities via various platforms and paper copies of services are distributed to the housebound and those unable to access the technology.

A Worship

Numbers attending face-to-face Sunday worship across the circuit are increasing towards pre-pandemic levels, and many churches are welcoming new people to join worship. There is an increasing number of mid-week services. The weekly circuit Sunday evening service continues to flourish via a video conferencing platform with about 40 participants each week. The circuit held a memorable hybrid service to bid farewell to Rev.Sue Williams, Rev.Al Lowe and Rev.Krystyna Kwarciak, and was delighted to be allocated a probationer minister, Rev.Catharine Hughes, to begin her ministry amongst us. 2022 is the twentieth anniversary of the formation of the Manchester Circuit and we are planning to celebrate this in a range of ways.

B Learning and Caring

We have been mindful of the effect that the pandemic has had on the mental health of many; the Listening Ear project was set up , with support of trained volunteers to enable the most vulnerable to have a regular phone call and chat. Ministers, Lay Workers and Pastoral secretaries from the churches have also given excellent support to those in need and we continue to be grateful for their work and commitment. Face-to-face activities such as Bible study groups, coffee mornings, book clubs and film clubs meet on a regular basis and are supplemented by activities on Zoom organised by both local churches and the circuit.

Children and young people’s work is now operating face-to-face, backed up by input on the circuit’s various social media platforms, and is always well received –thanks to those involved in ensuring that both the work of the circuit and in local churches continues. Church members have supported food banks, the Baby Basket project at Moston and Befrienders. Safeguarding training has also been adapted for online use and is delivered both face-to-face and online.

The Circuit consultation has led to new initiatives including the development of a circuit environmental policy and a stewardship campaign. Some churches have begun to gain eco-awards under the A Rocha scheme.

C Service

The Circuit continues to support lay workers whose appointments focus on social outreach and service, including a new appointment of a lay pastor to one church. The Moston Baby Basket continues to respond to the needs of young families with a growing team of volunteers from across the circuit. At the Methodist Central Hall, ‘Reboot’ continues to provide shoes and socks for the homeless, and is increasingly well-used, alongside the drop-in centre ‘Befrienders’. During Lent, the circuit supported a charity called Tools with a Mission and collected a van-load of tools to support business initiatives in developing countries.

Following extensive consultation within the circuit meeting as managing trustees, the Wesley Centre has returned to direct management from within the circuit. This is handled day-to-day by a warden and a management committee. The Centre is now fully occupied by a range of tenants, some commercial, some third-sector.

The circuit meeting has also taken on managing trusteeship of Trinity Methodist Church, Ancoats, following the congregation’s decision to cease to meet. The building is currently being renovated, with considerable input from Methodist Insurance following a roof collapse, and will become a hub for community support in this deprived area, with input from the staff team at Methodist Central Hall.

The circuit’s policy is to fund staffing for outreach work from its income from the sale of property. The sale of property in Didsbury known as The Rossett will boost the funds available for this work, and we intend to make further appointments of lay staff in the coming year.

THE METHODIST CHURCH - MANCHESTER CIRCUIT TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022

D Evangelism

Nexus is unable to operate currently but work is ongoing to revisit its strategies for evangelism in the future. However, Sanctus, a small but committed group, is still meeting and will have the support of the new Minister appointed to the Circuit in 2022. Our online worship, website and the use of Facebook and Twitter are supported by the circuit’s community engagement officer. These platforms have attracted a number 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.

FINANCIAL REVIEW

Overview

The Circuit had a deficit on unrestricted funds, after transfers for the year of £85,850, which is less than had been anticipated in the budget.

However, the Circuit cannot continue to run at a deficit only balancing the books by the disposal of properties and needs to achieve a balanced revenue budget in the near future. The Circuit Meeting accepted a deficit budget for 22/23 recognising the pressure on local churches caused by the pandemic but on the clear understanding that a new method of calculating assessments would be agreed and that in total assessment would rise to c£400k from 23/24 onwards, although initial budgets have taken a more cautious approach.

In setting future budgets the Circuity has identified expenditure which is core but highly desirable to further the Kingdom of God and which can be funded from future property sales. This funding of costs along with a continued review of other costs would mean that the Circuit could move to covering revenue expenditure out of current income and break its dependency on property sales to meet revenue costs. In the meanwhile, it remains dependent on drawing on free reserves.

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

The subsidiary company has not traded during the year.

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 58% (2021: 67%) of income.

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, and grant commitments. 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 £135,000 and £270,000.

THE METHODIST CHURCH - MANCHESTER CIRCUIT TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022

As at 31 August 2022, the level of free reserves stood at c£533k, but there is a commitment to use c£123k to balance 22/23 budget. There is the potential to need a further £125k over the following two years, assuming that assessments levels are able to increase. Taking all these factors into account would leave free reserves at c£285k.

In addition, the Circuit will be under pressure to find resources to support new initiatives for church planting and support areas of mission.

The reserves policy will remain under review.

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.
strengthen the training culture within the Circuit, encouraging lay preachers and worship leaders in their development, supporting probationers and facilitating the development of student Ministers and 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 required. At the end of this Connexional year two presbyterial appointments come to an end, with the proposed appointment of a probationer minister for three of the churches and a lay pastor for the other appointment.
work ecumenically, especially in supporting and developing established and new Local Ecumenical Partnerships and with particular focus on the Anglican-Methodist Covenant.

Following on from the roof collapse and flooding in January 2021 at Trinity Church, it is hoped that the refurbished building can be used for new mission in this rapidly expanding area of Manchester. We would hope to have a joint mission project alongside other churches in the area and the local community.

After the year end the Circuit disposed of a manse and purchased another one.

It continues to be involved in negotiations which would result in a parcel of land associated with one of its properties Onot currently included in the accounts as it was originally believed to be of no commercial value due to planning constraints and having no value in use for the church) sold for residential development. If this is successful then it would result in a substantial gain to the Circuit and the wider Methodist Church of c£4m. However, matters remain uncertain and therefore the land has not been included in these accounts.

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, presbyterial 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 METHODIST CHURCH - MANCHESTER CIRCUIT TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022

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 2022 (excluding those whose term of office ended on that day) there were 71 members of the Circuit Meeting (2021: 71).

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.

Organisation

The Circuit Meeting meets four 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

C Wickens

REV DR C WICKENS - SUPERINTENDENT MINISTER

Date: June 26 2023

INDEPENDENT EXAMINER’S REPORT TO THE MEMBERS OF CIRCUIT MEETING OF THE METHODIST CHURCH - MANCHESTER CIRCUIT FOR THE YEAR ENDED 31 AUGUST 2022

I report to the charity trustees on my examination of the accounts of the charity for the year ended August 31, 2022 which are set out on pages 9 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.

Jane Cooksey

Jane Cooksey FCCA Jane Cooksey Ltd 15/16 Boarshurst Bus. Park Boarshurst Lane Greenfield Oldham OL3 7ER

Date: June 14 2023

THE METHODIST CHURCH - MANCHESTER CIRCUIT GROUP STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2022

Unrestricted Funds £ 301,028 76,622 67,565 5,301 25,565	Restricted Funds £ - 3,253 - 32 - 3,285 20 3,503	Endowment Funds £ - - - 1,064 -
476,081		1,064
46,344 523,120		382 -
569,464 6,887	3,523 -	382 (13,213)
(86,496) 646	(238) -	(12,531) (646)
(85,850) 3,040,487	(238) 10,978	(13,177) 130,312
2,954,637	10,740	117,135

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 2022

Unrestricted Funds £ 301,028 76,622 67,565 5,301 25,565	Restricted Funds £ - 3,253 - 32 - 3,285 20 3,503	Endowment Funds £ - - - 1,064 -
476,081		1,064
46,344 523,120		382 -
569,464 6,887	3,523 -	382 (13,213)
(86,496) 646	(238) -	(12,531) (646)
(85,850) 3,041,610	(238) 10,978	(13,177) 130,312
2,955,760	10,740	117,135

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 2022

Notes FIXED ASSETS Tangible fixed assets 14 Investments 15 CURRENT ASSETS Debtors 16 Investments 17 Cash at Bank and in Hand CREDITORS Amounts falling due in one year 18 NET CURRENT ASSETS CREDITORS Amounts falling due in more than one year 19 NET ASSETS FUNDS Unrestricted 20 Restricted 20 Endowment 20 TOTAL FUNDS	2022 £ 186,972 - 310,138	2022 2021 £ £ 2,334,416 293,977 2,628,393 161,687 385,000 135,725 682,412 40,416 454,119 3,082,512 - 3,082,512 2,954,637 10,740 117,135 3,082,512	2021 £ 2,352,064 188,777
			2,540,841 641,996
	497,110 42,991

			3,182,837 1,060
			3,181,777
			3,040,487 10,978 130,312
			3,181,777

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

Approved by the Circuit Meeting and authorised for issue on: June 26 2023

C Wickens

REVD. DR C WICKENS - SUPERINTENDENT MINISTER

THE METHODIST CHURCH - MANCHESTER CIRCUIT CIRCUIT BALANCE SHEET AS AT 31 AUGUST 2022

Notes FIXED ASSETS Tangible fixed assets 14 Investments 15 CURRENT ASSETS Debtors 16 Investments 17 Cash at Bank and in Hand CREDITORS Amounts falling due in one year 18 NET CURRENT ASSETS CREDITORS Amounts falling due in more than one year 19 NET ASSETS FUNDS Unrestricted 20 Restricted 20 Endowment 20 TOTAL FUNDS	2022 £ 198,578 - 299,655	2022 2021 £ £ 2,334,416 293,977 2,628,393 177,955 385,000 119,730 682,685 39,566 455,242 3,083,635 - 3,083,635 2,955,760 10,740 117,135 3,083,635	2021 £ 2,352,064 188,777
			2,540,841 643,119
	498,233 42,991

			3,183,960 1,060
			3,182,900
			3,041,610 10,978 130,312
			3,182,900

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

Approved by the Circuit Meeting and authorised for issue on: June 26 2023

C Wickens

REVD. DR C WICKENS - SUPERINTENDENT MINISTER

THE METHODIST CHURCH - MANCHESTER CIRCUIT CIRCUIT AND GROUP STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2022

Group 2022 £ (104,715)	Group 2021 £ (129,371)	Circuit 2022 £ (99,203)	Circuit 2021 £ (130,661)
6,397 391,887 - - 273,564 (391,977)	1,810 - 285,502 (350,333) 416,465 (285,760)	6,397 391,887 - - 273,564 (391,977)	1,810 - 285,502 (350,333) 416,465 (285,760)
279,871	67,684	279,871	67,684
- (743)	- (650)	- (743)	(650)
(743)	(650)	(743)	(650)
174,413 135,725	(62,337) 198,062	179,925 119,730	(63,627) 183,357
310,138	135,725	299,655	119,730
310,138	135,725	299,655	119,730
310,138	135,725	299,655	119,730

Details of movements in net debt are given in note 26.

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

THE METHODIST CHURCH - MANCHESTER CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

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 2022

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

Charitable activities

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

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 10.

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 2022

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 15.

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% (2020: 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 2022

Unrestricted	2022 Restricted/ endowment	Total	Unrestricted	2021 Restricted/ endowment	Total
£ 279,492 226 45 21,265	£ - - - -	£ 279,492 226 45 21,265	£ 282,655 2,364 4,486 300,000	£ - - - -	£ *282,655* *2,364* *4,486* *300,000*
301,028	-	301,028	589,505	-	*589,505*
301,028	-	301,028	589,505	-	*589,505*
	- 3,253	76,622 3,253	70,491 -	- 23,229	*70,491* *23,229*
76,622	3,253	79,875	70,491	23,229	*93,720*
24,652 42,913 -	- - -	24,652 42,913 -	23,452 8,470 2,854	- - -	*23,452* *8,470* *2,854*
67,565 - -	- - -	67,565 - -	34,776 34,079 (5,994)	- - -	*34,776* *34,079* *(5,994)*
67,565	-	67,565	62,861	-	*62,861*
	1,096 -	1,138 5,259	778 945	- 87	*778* *1,032*
5,301 -	1,096 -	6,397 -	1,723 -	87 -	*1,810* -
5,301	1,096	6,397	1,723	87	*1,810*
25,565 -	- -	25,565 -	- 47,247	-	- *47,247*
25,565	-	25,565	47,247	-	*47,247*

THE METHODIST CHURCH - MANCHESTER CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

7 SUBSIDIARY COMPANY - WESLEY LTD

Turnover Administration costs Amortisation of capital grants 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	2022 £ - - - - - - - - 10,569 (11,691) (1,122)	2021 £ 34,079 (103,918) 63,451 -
		(6,388) -
		(6,388)
		- 16,178 (17,300)
		(1,122)

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.

8 COSTS OF GENERATING FUNDS

Unrestricted	2022 Restricted/ endowment	Total	Unrestricted	2021 Restricted/ endowment	Total
	£ 402 - - - -	£ 549 2,810 27,351 10,291 5,745	£ 629 2,589 2,176 834 5,851	£ 51 - - - -	£ *680* *2,589* *2,176* *834* *5,851*
46,344 - -	402 - -	46,746 - -	12,079 103,918 (2,854)	51 - -	*12,130* *103,918* *(2,854)*
46,344	402	46,746	113,143	51	*113,194*

THE METHODIST CHURCH - MANCHESTER CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

Unrestricted	Restricted 2022	Total	Unrestricted	Restricted 2021	Total
£ 266,962 6,572 - 10,000 4,810 57,227 23,883 3,654 77,243 1,214 - 17,649 53,906 -	£ 3,253 - - - - - - - - - 250 - - -	£ 270,215 6,572 - 10,000 4,810 57,227 23,883 3,654 77,243 1,214 250 17,649 53,906 -	£ 257,742 5,948 2,000 5,000 - 41,313 6,730 9,486 83,131 6,465 - 15,246 55,137 -	£ 23,169 - - - - - - - - - 317 - - -	£ *280,911* *5,948* *2,000* *5,000* - *41,313* *6,730* *9,486* *83,131* *6,465* *317* *15,246* *55,137* -
523,120 -	3,503 -	526,623 -	488,198 (3,140)	23,486 -	*511,684* *(3,140)*
523,120	3,503	526,623	485,058	23,486	*508,544*

STS Fundraising	2022 Charitable	Total	Fundraising	2021 Charitable	Total
£ 1,709 2,241 1,795	£ 15,385 20,166 16,155	£ 17,094 22,407 17,950	£ 1,265 2,812 1,774	£ 11,380 25,304 15,963	£ *12,645* *28,116* *17,737*
5,745 -	51,706 2,200	57,451 2,200	5,851 -	52,647 2,490	*58,498* *2,490*
5,745	53,906	59,651	5,851	55,137	*60,988*

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

Unrestricted 11 GAINS AND LOSSES ON INVESTMENTS funds £ Unrealised gains/(losses) on revaluation of fixed asset investments - Realised gain on disposal of investments 6,887 Unrealised gain on assets held for sale - 6,887 Unrestricted funds £ Unrealised gains/(losses) on revaluation of fixed asset investments - Unrealised gain on assets held for sale 192,543 192,543	Restricted Funds £ - - -	Endowment funds £ (13,213) - -	2022 £ (13,213) 6,887 -
6,887	-	(13,213)	(6,326)
	Restricted Funds £ - -	Endowment funds £ (6,173) -	2021 £ *(6,173)* *192,543*
192,543	-	(6,173)	*186,370*

THE METHODIST CHURCH - MANCHESTER CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

12 GROUP NET INCOMING RESOURCES AFTER TRANSFERS This is stated after charging/(crediting): Independent examiners' fees Depreciation of fixed assets Operating lease rentals Trustees' remuneration as trustees Trustees' expenses as trustees 13 STAFF INFORMATION a Staff costs Stipends and salaries Apprenticeship levy Pension contributions - Methodist Ministers Scheme MMPF reserve Pension contributions - other Employer's NI contributions	2022 £ 2,200 17,648 - - - 2022 £ 208,680 1,136 45,113 25,000 1,494 16,177 297,600	2021 £ 2,490 85,126 - - -
		2021 £ 226,790 1,209 48,061 - 2,216 16,114
		294,390

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	£ 257,083	£ 254,026

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	2022 2021 Average Average number number 7.0 8.0 6.0 6.0 13.0 14.0

d Additional pension contribution

The Circuit responded to an appeal by the Methodist Conference for all parts of the Connexion to make voluntary contributions to the Methodist Ministers' Pension Fund reserve. It made a contribution of £25,000.

THE METHODIST CHURCH - MANCHESTER CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

14 TANGIBLE FIXED ASSETS


TANGIBLE FIXED ASSETS GROUP AND CIRCUIT Cost As at September 1 2021 As at August 31 2022 Depreciation As at September 1 2021 Charge for the year As at August 31 2022 Net book value As at August 31 2022 As at August 31 2021	Freehold land & buildings £ 1,864,935	Long leasehold properties £ 572,000 572,000 34,460 5,720 40,180	Fixtures Fittings & Equipment £ 19,012 19,012 17,525 906 18,431 581 1,487	Total £ 2,455,947 2,455,947 103,883 17,648 121,531 2,334,416
	1,864,935
	51,898 11,022
	62,920
	1,802,015	531,820
	1,813,037	537,540		2,352,064

The net book value of equipment held on finance leases was £696 (2021 - £1,392).

THE METHODIST CHURCH - MANCHESTER CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

15 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	2022 £ 188,777 90 391,887 (273,564) (13,213) 293,977 98,069 195,908 293,977	2021 £ 325,655 258 285,502 (416,465) (6,173)
		188,777
		111,282 77,495
		188,777

Unrestricted funds 2022 2021 £ £ 51,554 182,296 42 221 391,887 285,502 (273,564) (416,465) - -	Unrestricted funds 2022 2021 £ £ 51,554 182,296 42 221 391,887 285,502 (273,564) (416,465) - -	Restricted funds 2022 2021 £ £ 6,911 6,901 13 10 - - - - - - 6,924 6,911 - - 6,924 6,911 6,924 6,911	Restricted funds 2022 2021 £ £ 6,911 6,901 13 10 - - - - - - 6,924 6,911 - - 6,924 6,911 6,924 6,911	Endowment funds 2022 2021 £ £ 130,312 136,458 35 27 - - - - (13,213) (6,173) 117,134 130,312 98,069 111,282 19,065 19,030 117,134 130,312	Endowment funds 2022 2021 £ £ 130,312 136,458 35 27 - - - - (13,213) (6,173) 117,134 130,312 98,069 111,282 19,065 19,030 117,134 130,312
169,919	51,554	6,924	6,911	117,134	130,312
	- 51,554	- 6,924	- 6,911	98,069 19,065	111,282 19,030
169,919	51,554	6,924	6,911	117,134	130,312

16 DEBTORS DUE IN MORE THAN ONE YEAR

Loan to Wesley Limited

Group 2022 £ -	Group Circuit 2021 2022 £ £ -	Circuit 2021 £ -
-	- -	-

THE METHODIST CHURCH - MANCHESTER CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

Group 2022 £ 16 DEBTORS Trade debtors 85 Loans to Circuit Churches 17,208 Amounts due from Wesley Limited - Prepayments & other debtors 169,679 186,972	Group 2021 £ 182 17,208 - 144,297	Circuit 2022 £ - 17,208 11,691 169,679	Circuit 2021 £ - 17,208 16,450 144,297
	161,687	198,578	177,955

- - 29,039 3,989 315 1,060 8,588	385,000	-	385,000
	385,000	-	385,000
	28,976 - 644 743 10,053	29,039 3,989 315 1,060 8,588	28,976 - 644 743 9,203
42,991	40,416	42,991	39,566

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 accounts had been cleared and no funds were held for Hope (2021 -c£1.5k). The bank balances, the transactions and the liability to Hope were not shown in the Circuit accounts. Interest earned on the balance held and bank charges incurred have been wholly attributed to Hope.

19 CREDITORS falling due in more than on year

Finance lease creditor

-	1,060	1,060 - 1,060
-	1,060

THE METHODIST CHURCH - MANCHESTER CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

20 STATEMENT OF FUNDS

2021/22 Income Expenditure gains & loses Transfers 31/08/2022 £ £ £ £ £ 476,081 (569,464) 6,887 646 2,886,701 - - - - 67,936	476,081 (569,464) 6,887 646 2,954,637	3,285 (3,523) - - 10,740	117,135	3,082,512
			(646)	-
			(13,213)	(6,326)
			(382)	(573,369)
			1,064	480,430
b/f and c/f 31/08/2021 01/09/2021 £ 2,972,551 67,936	3,040,487	10,978	130,312	3,181,777
2020/21 01/09/2020 Income Expenditure Gains & loses Transfers £ £ £ £ £ 2,606,382 771,827 (598,201) 192,543 - 67,936 - - - -	2,674,318 771,827 (598,201) 192,543 -	11,225 23,252 (23,499) - -	-	-
			(6,173)	186,370
			(38)	(621,738)
			64	795,143
			136,459	2,822,002

THE METHODIST CHURCH - MANCHESTER CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

20 STATEMENT OF FUNDS (continued)

----- Start of picture text -----
60 478 2,151 1,128 6,923
31/08/2022 £ 2,887,824 67,936 2,955,760 10,740 98,070 19,065 117,135 3,083,635
646 - 646 - - - - - - (646) - (646) -
£
Transfers
£ 6,887 - 6,887 - - - - - - - (6,326)
(13,213) (13,213)
2021/22
gains & loses
£ - (3,253) - (250) - (20) (3,523) (328) (54) (382)
Expenditure (569,464) (569,464) (573,369)
- 3,253 - - - 32 3,285 975 89 1,064
£
476,081 476,081 480,430
Income
60 478 2,401 1,128 6,911
b/f and c/f 31/08/2021 01/09/2021 £ 2,973,674 67,936 3,041,610 10,978 111,282 19,030 130,312 3,182,900
- - - - - - - - - - - -
£
Transfers
£ - - - - - - - (6,173) - (6,173)
192,543 192,543 186,370
Gains & loses
- - (317) - (13) - (38) (38)
£
(500,277) (500,277) (23,169) (23,499) (523,814)
2020/21
Expenditure
- - - - 23 - 64 64
£ 743,742 743,742 23,229 23,252 767,058
Income
01/09/2020 £ 2,537,666 67,936 2,605,602 - 478 2,718 1,128 6,901 11,225 117,455 19,004 136,459 2,753,286
To support local churches in providing meals and entertainments for elderly, lonely and other people on Christmas day. Will be used over the next 5 years. To provide immediate relief to those in need, and will be utilised as required. To support Sunday School work. The trustees are considering how best to apply these funds To meet the repair needs associated with the buildings at the Gorton LEP. Will be used as needed.
CHARITY
Unrestricted funds: General fund Designated Funds: Property projects Total unrestricted funds Restricted Funds: Grants received for Circuit work Christmas Cheer Benevolence fund Sunday School work Gorton roofing fund Total restricted funds Endowments Ethel Smedley Bequest Evelyn Gledhill Bequest Total endowment funds Restricted funds Christmas Cheer Benevolence fund Sunday School work Gorton roofing fund
----- End of picture text -----

THE METHODIST CHURCH - MANCHESTER CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

21 ANALYSIS OF COMPANY NET ASSETS BETWEEN FUNDS

Fund balances at August 31 2022 are represented by:-

ANALYSIS OF COMPANY NET ASSETS BETWEEN FUNDS Fund balances at August 31 2022 are represented by:-
Unrestricted General Designated Funds Funds £ £ Tangible fixed assets 2,334,416 - Fixed asset investments 118,364 51,554 Net current assets 435,043 16,382 2,887,823 67,936 Fund balances at August 31 2021 are represented by:- Tangible fixed assets 2,352,064 - Fixed asset investments (8,446) 60,000 Net current assets 631,116 7,936 Creditors due in more than one year (1,060) - 2,973,674 67,936	Restricted Funds	Endowment Funds	Total
	£ - 6,924 3,817	£ - 117,135 -	£ 2,334,416 293,977 455,242
	10,741	117,135	3,083,635
	- 6,911 4,067 -	- 130,312 - -	*2,352,064* *188,777* *643,119* *(1,060)*
	10,978	130,312	*3,182,900*

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 (2021 £Nil).

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	2022 £ 1,160 - 1,160 (100) 1,060	2021 £ 928 1,160
		2,088 (285)
		1,803

THE METHODIST CHURCH - MANCHESTER CIRCUIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

25 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASHFLOW FROM OPERATING ACTIVITIES Group Group Circuit 2022 2021 2022 £ £ £ Net income/(expenditure) before transfers (99,265) 359,775 (99,265) Add back depreciation on fixed assets 17,648 85,126 17,648 Deduct property transferred to Circuit - (300,000) - Deduct/(add) unrealised gains/(losses) on investments 6,326 (186,370) 6,326 Deduct interest income shown in investing activities (6,397) (1,810) (6,397) Deduct profit/add back losses on disposals of FA - (47,247) - Decrease/(increase) in debtors (25,285) (28,598) (20,623) Increase/(decrease) in creditors 2,258 (10,247) 3,108 Net cash generated from/(used in) operating activities (104,715) (129,371) (99,203)	25 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASHFLOW FROM OPERATING ACTIVITIES Group Group Circuit 2022 2021 2022 £ £ £ Net income/(expenditure) before transfers (99,265) 359,775 (99,265) Add back depreciation on fixed assets 17,648 85,126 17,648 Deduct property transferred to Circuit - (300,000) - Deduct/(add) unrealised gains/(losses) on investments 6,326 (186,370) 6,326 Deduct interest income shown in investing activities (6,397) (1,810) (6,397) Deduct profit/add back losses on disposals of FA - (47,247) - Decrease/(increase) in debtors (25,285) (28,598) (20,623) Increase/(decrease) in creditors 2,258 (10,247) 3,108 Net cash generated from/(used in) operating activities (104,715) (129,371) (99,203)	25 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASHFLOW FROM OPERATING ACTIVITIES Group Group Circuit 2022 2021 2022 £ £ £ Net income/(expenditure) before transfers (99,265) 359,775 (99,265) Add back depreciation on fixed assets 17,648 85,126 17,648 Deduct property transferred to Circuit - (300,000) - Deduct/(add) unrealised gains/(losses) on investments 6,326 (186,370) 6,326 Deduct interest income shown in investing activities (6,397) (1,810) (6,397) Deduct profit/add back losses on disposals of FA - (47,247) - Decrease/(increase) in debtors (25,285) (28,598) (20,623) Increase/(decrease) in creditors 2,258 (10,247) 3,108 Net cash generated from/(used in) operating activities (104,715) (129,371) (99,203)	Circuit 2021 £ 429,614 15,247 (300,000) (186,370) (1,810) (47,247) (34,495) (5,600)
	(129,371)	(99,203)	(130,661)

26 NET MOVEMENT IN DEBT

At 31/8/20 £ 135,725	cashflows £ 174,413	finance lease repaid £ -	other non cash £ -	at 31/08/21 £ 310,138
1,803	(743)	-	-	1,060
133,922	179,925	-	-	309,078
119,730				299,655
1,803	(743)	-	-	1,060
117,927				298,595

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 2022

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 (£25,824; 2021: £25,524): Deacon Pru Cahill, Revd Krystyna Kwarciak, Rev Sharon Read, Revd. Joy Rulton, Revd. Ken Stokes, Revd. Caroline Wickens.

And the following minister received half stipend in 2020/21 and 2021/22: Revd Sue Williams; and in 2020/21 Revd. A Lowe as well.

All of whom, except for Revd Sue Williams, were provided with living accommodation as required by the church’s Standing Orders. 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 £2,582 (2021: £2,552) was paid to Revd Caroline Wickens in 2019/20 and 2020/21.

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	2022 £	2021 £
Angela Doyle	Circuit Administrator	13,229	11,468
Liz Stuart	Lay employee (not employed in year)	0	9,118

Ms Doyle was also an employee of Wesley Limited during the year and was in receipt of a salary in 2020/21 of £2,295 (2021/22 – none) for the work which she undertook as Company Secretary and Administrator. This employment was transferred to the Circuit from1/7/21, when Wesley Ltd ceased trading.

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 2021/22 amounted to £3,833 (2021: £7,696).

In 2019/20, 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 in 2021 of £78 (2022 none) for this work.

Wesley Limited

During 2020/21, Manchester Circuit paid rent (including VAT) to Wesley Limited of £3,768 (2022 – none).

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 2021, Methodist Chapel Aid Limited held funds on behalf of the Circuit totalling £14,196 (31/08/21 - £14,127).

Peter Smith Accountancy Services

Peter Smith (a trustee) trading as Peter Smith Accountancy Services has been appointed to provide professional accountancy and advice services beyond those normally expected of a trustee. Fees for 21/22 are budgeted at £2,500, which is included in accruals.