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2022-08-31-accounts

REGISTERED CHARITY NUMBER: 1142234

REPORT OF THE TRUSTEES AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

FOR

CHESHIRE SOUTH METHODIST CIRCUIT

Heywood Shepherd Chartered Accountants

1 Park Street Macclesfield Cheshire SK11 6SR

CHESHIRE SOUTH METHODIST CIRCUIT

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

Page
Report of the Trustees 1 to 8
Report of the Independent Auditors 9 to 11
Statement of Financial Activities 12
Balance Sheet 13
Cash Flow Statement 14
Notes to the Cash Flow Statement 15
Notes to the Financial Statements 16 to 23
Detailed Statement of Financial Activities 24 to 25

CHESHIRE SOUTH METHODIST CIRCUIT

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022

The trustees present their report with the financial statements of the charity for the year ended 31 August 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

Our aims are those of the Methodist Church in Great Britain and the main one is the advancement of the Christian faith through the witness and worship of all our members. We do this in accordance with the doctrines, standards and disciplines of the Methodist Church. The Circuit produces a quarterly preaching plan to ensure regular acts of worship take place at each of our premises. Worship is open to all people, without charge. Our main focus is mission to the communities we serve through our local churches.

Public benefit

The Trustees confirm that they have complied with the duty in Section 17 of the Charities Act having due regard to public benefit as per guidance published by the Charity Commission.

Page 1

CHESHIRE SOUTH METHODIST CIRCUIT

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022

ACHIEVEMENT AND PERFORMANCE Charitable activities

Discipleship and Mission

This period saw churches increasingly opening and welcoming people back together after the COVID-19 lockdowns. However, due to the risks still posed by the virus some activities were slow to recommence, and measures to mitigate these risks were in place. Despite this, many of the skills learned during the pandemic have offered useful tools for mission, e.g., the use of Zoom and Telephone Services that have increased opportunities for people to meet for worship and fellowship, including the housebound. Some meetings have continued to meet on Zoom, or have been in hybrid form. This has both enabled more people to participate, and offers environmental advantages by reducing the need for people to drive to meetings.

In Summer 2022, in line with the Circuit Vision of 'A Faithful and Fruitful Future', the Circuit started a new initiative to nurture faith and encourage mission by increasing the work that is shared by churches. For this, the Circuit has been divided into three "Mission Hubs": the Alsager and Sandbach Hub; the Crewe and Rope Green Hub; and the Nantwich, Whitchurch and Rural Hub. Within these Hubs, churches are encouraged to work together to pool ideas, resources and efforts for mission. To this end, each Hub will be resourced with a full-time lay worker. This is in addition to the excellent Cheshire South lay workers already in post, who frequently work in collaborative ways with volunteers and ecumenically in outreach work with local communities.

The Haven on North Street

"What's Happening at North Street" was changed to the new name "The Haven" that better reflected the safe and welcoming space that this has become.

The Haven on North Street sits on the former site of North Street Methodist Church in Cheshire, in the Crewe West Ward. In the early 2000s two churches merged, leaving the building in which The Haven was born. Land adjacent to the Church was sold to develop supported housing, which then funded the re-development of the Church building. The Haven is now a thriving community outreach project, which is part of the Cheshire South Methodist Circuit but is self-funding.

In various socio-economic data sets Crewe's data is awash with red, meaning that for many of these measures Crewe is in the bottom 20% of wards in the country and could be described as an area of deprivation. Six wards in Cheshire East are in the top 10% Index of Multiple Deprivation in the UK; all are in Crewe, including Crewe West.

The Haven consists of two large rooms, one of which is a coffee shop, and another room which can be sub-divided. It is a safe, inclusive and welcoming space, offering support, activities and signposting to all in the local community. Open Monday to Friday 9:00 - 3:00, it operates as a drop-in centre, but also runs the following activities:

Tai Chi - 2 sessions a week

Chatty Crafts Bingo and Board Games Knit and Natter Friendship Friday Veterans' Group

Bereavement Group - CAMEO

Safer Opportunities - a tuition provider for excluded pupils.

The coffee shop is run by a manager and a team of 18 volunteers, 13 of whom have a range of disabilities and are supported and developed by the Manager. There are also currently 2 volunteers on a Community Payback scheme. The Haven is known for its inclusivity and is fully accessible, so social care staff often arrange to attend with groups of disabled adults for lunch. Over a week there are generally around 300 visitors.

Since the Covid pandemic, The Haven has recovered well and continues to adapt and provide activities that meet the local community's needs. However, with the recent rises in costs of food, supplies and utilities, remaining financially sustainable is becoming harder and external financial support will be investigated.

Property

There continues to be a programme of repairs, maintenance and refurbishment of manses that are both lived in by Ministers and let out to tenants. There was an issue with non-payment of rent from one tenant and arrears have built up, but action to remedy this situation is being taken. Hatherton Chapel came into Circuit hands during 2021 and was sold for £118,000 in October 2021. The process to sell the former chapel at Hough is underway. St Mark's Church came into Circuit hands and was the host for a District Project for a few months, including being used for storage of emergency items for Ukraine. After this discussions were underway to work with Autism Inclusive who now rent the premises working with autistic young people. Baddiley & Ravensmoor Chapel came into Circuit hands in March 2022 and is currently being prepared for sale.

Page 2

CHESHIRE SOUTH METHODIST CIRCUIT

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022

FINANCIAL REVIEW

Financial position

These consolidated accounts incorporate the figures from our North Street Circuit Project,

Due to a change in one church's assessment and the closure of another, the final assessment income was £424,000 (budget £452,000). Thanks go to churches who continued to pay their assessments during a very difficult year.

A Finance Sub Committee was reconvened during 2021 to look at the assessment formula and it was decided to keep the formula and amounts the same for 21/22

The Circuit held reserves of £5.2 million at the end of August 2022 (£4 million 2021) and current assets (those not held in property or long-term investments) were approximately £367k. (£435k 2021)

One of our main sources of income was £55k (2021 - £51k) of rental income both from empty manses, two retail shop leases, and the Bowling Club at North Street. This income stream continues to provide valuable revenue to support the circuit mission.

Income from the café in North Street amounted to £37,807 (2021 - £10,911). Also included are grants totalling approximately £4,000. The increase in trading income was due to reopening post Covid and the closure of the café. The Circuit continues to support this project as part its missionary work.

Staffing costs and travel expenses of the Circuit had little change over the year £403k (2021- £397k). The assessment paid to the District to cover their costs and to forward to the national connexion totalled £107k (2021 - £105k).

Our net outgoing resources amounted to a deficit of £189k compared to a deficit of £78k in 2021.

Investment policy and objectives

Listed investments are stated at market value at the balance sheet date.The SOFA includes the net gains and losses arising on revaluations and disposals throughout the year. Cash at bank is held to meet the day to day running costs of the charity as they fall due.

Reserves policy

The reserves policy for 2021-2022 is set at £300,000 in readily available funds, which is sufficient to meet general expenditure for a period of six months. There is currently £80k of outstanding loans to support church building improvement programmes included in this.

FUTURE PLANS

Work will continue to develop the newly-formed Mission Hubs. It is hoped that meetings across each Mission Hub can start the conversation about what sort of lay worker will best further mission. This work needs to be prayerful, seeking to notice where God is already at work, and we are being called to act. These discussions will be held within each individual Mission Hub, recognising the different context of each area, each with their own characteristics and needs. Smaller 'steering groups' will be formed in each Mission Hub, but communication with the wider membership of the Mission Hub churches is vital.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

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

Page 3

CHESHIRE SOUTH METHODIST CIRCUIT

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022

Cheshire South Methodist Circuit is part of the Methodist Church in Great Britain (Charity Number 1132208). Its status as a charity has historically been derived from the Deed of Union 1932 and the Methodist Church Act 1976. Agreement having been reached with the Charity Commission for the progressive registration of Methodist entities, the Circuit was registered as a charity on 3rd June 2011.

We are a part of the Chester & Stoke-on-Trent Methodist District which is registered as a separate charity (Charity Number 1132237).

The Circuit comprises of 23 church organisations. Our churches are separate charitable organisations; 4 are registered with the Charity Commission and the remaining 19 are currently excepted from registration with the Charity Commission as they have annual receipts of less than £100,000. We operate in the administrative council areas of Cheshire East, Cheshire West and Chester, Shropshire and Wrexham.

The registered charity named 'Cheshire South Methodist Circuit' is primarily an administration organisation that manages the Circuit personnel, housing for ministers, redundant churches whose future is still to be decided, and other properties which are rented out pending future use. The Circuit provides guidance and oversight to the individual churches on a wide range of matters, which together comprise the wider 'Circuit'. It also provides co-ordination of discipleship and mission, safeguarding, preaching appointments, training, and Circuit-wide events etc. It is also a grant-making body, recycling funds from the sale of redundant properties towards new Circuit and local church initiatives.

Overarching governance is achieved through the Circuit Meeting. This meets formally three times a year to review all aspects of the Circuit including mission, finance and property matters and to approve strategy and appointments. Trustees are appointed from those individuals holding official positions in the charity and additionally from local church nominations as per our constitutional practices. On 1st September 2022 there were 82 trustees. The Trustees accountable during the year to which this report relates are listed later in section 7.

The Circuit Leadership Team (CLT), comprises 6 presbyters, 1 deacon, 1 lay worker coordinator, a local preacher representative and 5 Circuit stewards; The CLT meets regularly to review policies and to set in place actions needed to maintain our mission and to ensure good governance between the Circuit Meetings. There are 3 Circuit teams reporting to CLT who assist the local churches and Circuit with issues related to property, finance, and staffing

Local Preachers form an important role in the Circuit and meet regularly for training and mutual support. There were 60 Local Preachers plus 1 on note and 2 on trial (i.e. in training for this vital ministry).

REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number

1142234

Principal address

�Broad Lane Methodist Chapel Audlem Road NANTWICH Cheshire CW5 7EB

Page 4

CHESHIRE SOUTH METHODIST CIRCUIT

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022

Trustees

In the 2021/2022 financial year our presbyters, lay employees and Circuit stewards were as follows:

Presbyters Revd Rob Hilton - Superintendent Revd Jeremy Tresise Revd Robin Fox Revd Donna-Marie Broadbent-Kelly Revd Sarah Butcher Revd Ian Duffy

Deacon Jill Henderson

Lay Workers Mrs Heather Staniland (seconded from District) Ms Kathryn Davies Mr Stephen Parker-Aiken Mr Andy Townsend Mr Jonathon Newbould Ms Elizabeth Morris (contractor) Circuit Administrators Mr Daniel Keen (Circuit Administrator) Mrs Joanne Reeves (Finance)

Circuit Stewards Mrs Pat Maidment Mrs Isabel Brislen Mr Gary Cliffe, Circuit Treasurer Mrs Briony Myles-Hook Mrs Ellen Cieka

More details about our Circuit and churches can be found at our web site http://www.cheshiresouth.org.uk Trustees at 1st September 2022

Revd Sarah Butcher Revd Donna Broadbent-Kelly Revd Rob Hilton Revd Robin Fox Deacon Jill Henderson Revd Jeremy Tresise Mrs Isabel Brislen Mrs Pat Maidment Mrs Ellen Cieka Mrs Briony Myles-Hook Dr Geoff Dickinson Mr Gary Cliffe Mr Daniel Keen Mrs Kathryn Davies Mrs Elizabeth Morris Mr Jonathon Newbould Mr Stephen Parker-Aiken Mrs Heather Staniland Mr Andy Townsend Dr Malcolm Crook Mr Paul Jackson

Page 5

CHESHIRE SOUTH METHODIST CIRCUIT

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022

Mr Roger Hunt Mrs Jenny Smith Mrs Sue Taylor Mrs Hilda White Dr Michael Guy Mrs Wendy Cain Mrs Glenys Hollins Mr Roger Millns Mr David Maidment Mrs Jayne Bunn Mr Brian Faulkner Mrs Norma Stolworthy Mrs Hilda White Mrs Anita Andrews Mr Norman Bourne Mrs Yvonne Bushill Mr Graham Dimelow Mr David Griffith Mrs Liz Grundy Mrs Philippa Hellingman Mrs Michelle Holland Mrs Jill Howell Mrs Patricia Jones Mrs Gill Merry Mrs Julia Parton Mrs Lesley Peake Mr Tony Ritchie Mrs Sheila Scragg Mr David Smith Mr Alec Sutton Mrs Linda Twydell Mr David Crompton Mr Cyril Cooper Miss Jane Eardley Mrs Jean Ellershaw Mr Andrew Griffin Mrs Ann Horsfield Mr David Johnson Mrs Brenda Jones Mrs Robina Lowndes Mrs Doreen Manning Mrs Margaret Penaluna Mr David Priaulx Mr Peter Shingler Mrs Sarah Sutton Mr Roland Twydell Revd David Westhead Mr Fred Wright Mrs Alison Wynne Mrs Nilda Eyre Mrs Jackie Holland Mrs Margaret Kirkman Mrs Christina Lawson Mrs Joyce Martin Mr Alan Pimlott Ms Sarah Simpkin Mrs Susan Smith Mr Andrew Stolworthy

Page 6

CHESHIRE SOUTH METHODIST CIRCUIT

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022

Mr Clive Taylor Mrs Yvonne Alcock

Principal address for Correspondence c/o The Senior Circuit Steward Cheshire South Circuit Broad Lane Methodist Church Audlem Road Nantwich CW5 7EB

Auditors & Accountants Heywood Shepherd 1 Park Street Macclesfield Cheshire SK11 6SR Solicitors Hibberts Solicitors 25 Barker Street Nantwich Cheshire CW5 5EN Bankers The Co-operative Bank plc PO Box 250 Skelmersdale WN8 6WT Central Finance Board of the Methodist Church 9 Bonhill Street London EC2A 4PE

Auditors

Heywood Shepherd Chartered Accountants 1 Park Street Macclesfield Cheshire SK11 6SR

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Page 7

CHESHIRE SOUTH METHODIST CIRCUIT

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to

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

Approved by order of the board of trustees on 14 November 2023 and signed on its behalf by:

G Cliffe - Trustee

Page 8

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF CHESHIRE SOUTH METHODIST CIRCUIT

Opinion

We have audited the financial statements of CHESHIRE SOUTH METHODIST CIRCUIT (the 'charity') for the year ended 31 August 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Page 9

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF CHESHIRE SOUTH METHODIST CIRCUIT

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, are detailed below.

Our approach to identifying and assessing the risks of material misstatements in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

Page 10

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF CHESHIRE SOUTH METHODIST CIRCUIT

We assessed the susceptibility of the charity's financial statements to material misstatements, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from errors as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Heywood Shepherd Chartered Accountants 1 Park Street Macclesfield Cheshire SK11 6SR

14 November 2023

Page 11

CHESHIRE SOUTH METHODIST CIRCUIT

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2022

2022
Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
34,145
Charitable activities
5
Charitable Activities
483,575
Other trading activities
3
39,266
Investment income
4
1,426
Other income
-
Total
558,412
EXPENDITURE ON
Raising funds
6
37,136
Charitable activities
7
Charitable Activities
710,692
Total
747,828
Net gains on investments
1,379,616
NET INCOME
1,190,200
RECONCILIATION OF FUNDS
Total funds brought forward
4,048,567
TOTAL FUNDS CARRIED FORWARD
5,238,767		 2021
Total funds
£
39,145
517,183
12,047
610
43,732
612,717
19,481
672,003
691,484
225,570
146,803
3,901,764
4,048,567

The notes form part of these financial statements

Page 12

CHESHIRE SOUTH METHODIST CIRCUIT

BALANCE SHEET 31 AUGUST 2022

Notes
FIXED ASSETS
Tangible assets
13
Investments
14
CURRENT ASSETS
Debtors
15
Cash at bank
CREDITORS
Amounts falling due within one year
16
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
FUNDS
17
Unrestricted funds
TOTAL FUNDS		 2022
Unrestricted
fund
£
4,858,653
12,256
4,870,909
103,497
310,498
413,995
(46,137)
367,858
5,238,767
5,238,767
5,238,767
5,238,767		 2021
Total funds
£
3,599,657
13,077
3,612,734
110,883
347,807
458,690
(22,857)
435,833
4,048,567
4,048,567
4,048,567
4,048,567

The financial statements were approved by the Board of Trustees and authorised for issue on 14 November 2023 and were signed on its behalf by:

G Cliffe - Trustee

The notes form part of these financial statements

Page 13

CHESHIRE SOUTH METHODIST CIRCUIT

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2022

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash used in operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Sale of tangible fixed assets
Sale of fixed asset investments
Sale of investment property
Net cash provided by investing activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of
the reporting period
Cash and cash equivalents at the end of the
reporting period		 2022
£
(154,487)
(154,487)
(1,380,438 )
118,000
(822)
1,380,438
117,178
(37,309)
347,807
310,498		 2021
£
(95,818)
(95,818)
(237,008)
117,000
2,028
223,542
105,562
9,744
338,063
347,807

The notes form part of these financial statements

Page 14

CHESHIRE SOUTH METHODIST CIRCUIT

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2022

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
2022 2021
£ £
Net income for the reporting period (as per the Statement of Financial Activities) 1,190,200 146,803
Adjustments for:
Depreciation charges 3,441 3,955
Gain on investments (1,378,794 ) (227,598)
Profit on disposal of fixed assets - (43,732)
Decrease in debtors 7,386 7,726
Increase in creditors 23,280 17,028
Net cash used in operations (154,487) (95,818)
2. ANALYSIS OF CHANGES IN NET FUNDS
At 1.9.21 Cash flow At 31.8.22
£ £ £
Net cash
Cash at bank 347,807 (37,309) 310,498
347,807 (37,309) 310,498
Total 347,807 (37,309) 310,498

The notes form part of these financial statements

Page 15

CHESHIRE SOUTH METHODIST CIRCUIT

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

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

The presentation currency of the financial statements is the Pound Sterling and rounded to the nearest £1.

Incoming resources and debtors

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

Debtors are recognised at settlement value.

Resources expended and creditors

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

Creditors are recognised at their settlement value.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property - not depreciated
Plant and machinery - Straight line over 5 years
Fixtures and fittings - Straight line over 5 years

Taxation

The charity is exempt from tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

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

Pension costs and other post-retirement benefits

The charity participates in the TPT Retirement Solutions - The Growth Plan scheme, a multi-employer scheme which provides benefits to some 638 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.

All Ministers are part of the Methodist Ministers Pension Scheme, the contributions to this scheme are accounted for as a defined contribution scheme.

Page 16

continued...

CHESHIRE SOUTH METHODIST CIRCUIT

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

1. ACCOUNTING POLICIES - continued

Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves to be able to continue as a going concern.

2. DONATIONS AND LEGACIES

Donations
Mission grants - North Street
Furlough Income
Insurance claim
3.
OTHER TRADING ACTIVITIES
Fundraising events
Cafe income
Other income
4.
INVESTMENT INCOME
Investment Income
5.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Assessments
Charitable Activities
Rental Income
Charitable Activities
Grants
Charitable Activities		 2022
£
12,538
15,000
602
6,005
34,145
2022
£
840
37,807
619
39,266
2022
£
1,426
2022
£
424,022
55,553
4,000
483,575		 2021
£
-
18,025
21,120
-
39,145
2021
£
-
10,911
1,136
12,047
2021
£
610
2021
£
438,995
51,984
26,204		 2021
£
-
18,025
21,120
-		 2021
£
-
18,025
21,120
-
39,145
2021
£
-
10,911
1,136
12,047
2021
£
610
517,183

Grants received this year of £4,000 ( £26,204 2021) were from the governments job retention scheme.

continued...

Page 17

CHESHIRE SOUTH METHODIST CIRCUIT

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

6. RAISING FUNDS

Other trading activities

2022
£
Purchases
37,136
CHARITABLE ACTIVITIES COSTS
Support
Direct
costs (see
Costs
note 8)
£
£
Charitable Activities
673,870
36,822
SUPPORT COSTS
Governance
Finance
costs
£
£
Charitable Activities
(13)
36,835
AUDITORS' REMUNERATION
2022
£
Fees payable to the charity's auditors for the audit of the charity's financial statements
5,091		 2021
£
19,481
Totals
£
710,692		 2021
£
19,481
Totals
£
36,822
2021
£
5,000

7. CHARITABLE ACTIVITIES COSTS

8.

9. AUDITORS' REMUNERATION

10. TRUSTEES' REMUNERATION AND BENEFITS

Twenty four trustees' received remuneration for the year ended 31 August 2022, the total paid to them was £282,750 (2021£298,174). This is included in salary costs in the accounts

Trustees' expenses

There were twenty four trustees' who received expenses paid for the year ended 31 August 2022, the total paid to them was £43,329 (2021- £35,589).

11. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 2022
£
288,889
18,828
96,109
403,826		 2021
£
330,017
16,797
50,711
397,525

continued...

Page 18

CHESHIRE SOUTH METHODIST CIRCUIT

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

11. STAFF COSTS - continued

The average monthly number of employees during the year was as follows:

Ministers and supernumeraries
Lay pastoral & Youth employees
Circuit administrators
No employees received emoluments in excess of £60,000.
12.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
INCOME AND ENDOWMENTS FROM
Donations and legacies
Charitable activities
Charitable Activities
Other trading activities
Investment income
Other income
Total
EXPENDITURE ON
Raising funds
Charitable activities
Charitable Activities
Total
Net gains on investments
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 2022
2021
8
8
6
6
3
3
17
17
Unrestricted
fund
£
39,145
517,183
12,047
610
43,732
612,717
19,481
672,003
691,484
225,570
146,803
3,901,764
4,048,567		 2022
2021
8
8
6
6
3
3
17
17
Unrestricted
fund
£
39,145
517,183
12,047
610
43,732
612,717
19,481
672,003
691,484
225,570
146,803
3,901,764
4,048,567
612,717
19,481
672,003
691,484
225,570
146,803
3,901,764
4,048,567

continued...

Page 19

CHESHIRE SOUTH METHODIST CIRCUIT

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

13. TANGIBLE FIXED ASSETS

COST
At 1 September 2021
Additions
Disposals
At 31 August 2022
DEPRECIATION
At 1 September 2021
Charge for year
At 31 August 2022
NET BOOK VALUE
At 31 August 2022
At 31 August 2021
14.
FIXED ASSET INVESTMENTS
MARKET VALUE
At 1 September 2021
Revaluations
At 31 August 2022
NET BOOK VALUE
At 31 August 2022
At 31 August 2021
There were no investment assets outside the UK.
Cost or valuation at 31 August 2022 is represented by:
Valuation in 2022		 Freehold
property
£
3,590,767
1,380,438
(118,000)
4,853,205
-
-
-
4,853,205
3,590,767		 Plant and
machinery
£
2,847
-
-
2,847
2,847
-
2,847
-
-		 Fixtures
and
fittings
Totals
£
£
20,835
3,614,449
-
1,380,438
-
(118,000)
20,835
4,876,887
11,946
14,793
3,441
3,441
15,387
18,234
5,448
4,858,653
8,889
3,599,656
Listed
investments
£
13,077
(821)
12,256
12,256
13,077
Listed
investments
£
12,256

continued...

Page 20

CHESHIRE SOUTH METHODIST CIRCUIT

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

15.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Other debtors
Prepayments and accrued income
16.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Other creditors
17.
MOVEMENT IN FUNDS
Unrestricted funds
General fund
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
558,412
TOTAL FUNDS
558,412
Comparatives for movement in funds
Unrestricted funds
General fund
TOTAL FUNDS		 At 1.9.21
£
4,048,567
4,048,567
Resources
expended
£
(747,828)
(747,828)
At 1.9.20
£
3,901,764
3,901,764		 2022
£
1,496
76,782
25,219
103,497
2022
£
46,137
Net
movement
in funds
£
1,190,200
1,190,200
Gains and
losses
£
1,379,616
1,379,616
Net
movement
in funds
£
146,803
146,803		 2021
£
5,404
87,357
18,122
110,883
2021
£
22,857
At 31.8.22
£
5,238,767		 2021
£
5,404
87,357
18,122		 2021
£
5,404
87,357
18,122
110,883
2021
£
22,857
5,238,767
Movement
in funds
£
1,190,200
1,190,200
At 31.8.21
£
4,048,567
4,048,567

continued...

Page 21

CHESHIRE SOUTH METHODIST CIRCUIT

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

17. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Incoming Resources Gains and Movement
resources expended losses in funds
£ £ £ £
Unrestricted funds
General fund 612,717 (691,484) 225,570 146,803
TOTAL FUNDS 612,717 (691,484) 225,570 146,803

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 At 1.9.20
£
3,901,764
3,901,764		 Net
movement
in funds
£
1,337,003
1,337,003		 At 31.8.22
£
5,238,767
5,238,767

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 Incoming
resources
£
1,171,129
1,171,129		 Resources
expended
£
(1,439,312 )
(1,439,312 )		 Gains and
losses
£
1,605,186
1,605,186		 Movement
in funds
£
1,337,003
1,337,003

18. EMPLOYEE BENEFIT OBLIGATIONS

Due to the historic merger of four circuits into the Cheshire South Methodist Circuit on 1st September 2010, there needs to be a legal apportionment of the liabilities of each separate Circuits pension fund. Once the liabilities have been apportioned, TPT retirement solutions (formerly the pensions trust) has estimated that the present value of the deficit on the ongoing fund of the Cheshire South Methodist pension fund is at 2022 £7,680 (2021 £14,484 ). The scheme is classified as a "last man standing arrangement". Therefore the circuit is potentially liable for other participating employers obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity basis on withdrawal from the scheme. The debt is recalculated by the Scheme Actuary annually, and the circuit is provided with an update of the debt each year. This liability is not reserved for in the accounts.

There are three pension schemes in total, the other two are also treated as defined contribution schemes.

The total employer contributions in the year were £96,109 (£50,711 in 2021. This included a payment of £50,000 towards the deficit in the Methodist Ministers pension scheme.

Methodist Ministers Pension Scheme (MMPS)

continued...

Page 22

CHESHIRE SOUTH METHODIST CIRCUIT

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

18. EMPLOYEE BENEFIT OBLIGATIONS - continued

The economic shocks of 2022 have had a profound impact on the funding position of the MMPS. More information can be found in the report to the Methodist Conference Conf Report 26. Pension Schemes.

The Conference confirmed that the increase in circuit contribution rates planned for September

2023 was to be cancelled. It also confirmed that should circumstances allow over the coming years, the voluntary contributions to the Pension Reserve Fund it had appealed for in 2021 be returned to the donors with interest paid at the Central Finance Board Deposit Rate. The next triennial valuation of the scheme is due as at 1 September 2023. Once the valuation has been signed off in 2024 it is hoped a decision about return of the voluntary contributions can be made.

19. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 August 2022.

Page 23

CHESHIRE SOUTH METHODIST CIRCUIT

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2022

INCOME AND ENDOWMENTS
Donations and legacies
Donations
Mission grants - North Street
Furlough Income
Insurance claim
Other trading activities
Fundraising events
Cafe income
Other income
Investment income
Investment Income
Charitable activities
Assessments
Rental Income
Grants
Other income
Gain on sale of tangible fixed assets
Total incoming resources
EXPENDITURE
Other trading activities
North Street Cafe
Charitable activities
Wages
Social security
Pensions
Staff recruitment
Telephone
Postage and stationery
Sundries
Assessments
Youth mission Costs
Carried forward		 2022
£
12,538
15,000
602
6,005
34,145
840
37,807
619
39,266
1,426
424,022
55,553
4,000
483,575
-
558,412
37,136
288,889
18,828
96,109
6,888
1,275
2,599
1,369
107,324
2,812
526,093		 2021
£
-
18,025
21,120
-
39,145
-
10,911
1,136
12,047
610
438,995
51,984
26,204
517,183
43,732
612,717
19,481
330,017
16,797
50,711
5,396
982
4,491
46
105,503
450
514,393

This page does not form part of the statutory financial statements

Page 24

CHESHIRE SOUTH METHODIST CIRCUIT

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2022

2022
£
Charitable activities
Brought forward
526,093
Grants made
4,880
Manses
90,566
Legacy properties
10,011
Temporary staff
5,149
It support and software
11,694
Subscriptions
325
Travel and subsistence
10,947
Management fees
4,640
Insurance
429
Quinquennial costs
5,695
Plant and machinery
-
Fixtures and fittings
3,441
673,870
Support costs
Finance
Bank charges
(13)
Governance costs
Auditors' remuneration
5,091
Legal and professional fees
31,744
36,835
Total resources expended
747,828
Net expenditure before gains and losses
(189,416)
Realised recognised gains and losses
Realised gains/(losses) on fixed asset investments
(822)
Realised gains/(losses) on investment property
1,380,438
Net income
1,190,200		 2021
£
514,393
2,800
69,285
5,050
9,246
13,268
583
13,937
2,184
322
3,155
106
3,849
638,178
51
5,000
28,774
33,774
691,484
(78,767)
2,028
223,542
146,803

This page does not form part of the statutory financial statements

Page 25