Charity registration number: 1142234
## Cheshire South Methodist Circuit
Annual Report and Financial Statements for the Year Ended 31 August 2023
Bright Partnership Ltd Chartered Accountants & Business Advisor 1 Park Street Macclesfied Cheshire SK116SR
## **Cheshire South Methodist Circuit**
## **Contents (continued)**
|Trustees' Report|1 to 9|
|---|---|
|Independent Auditors' Report|10 to 13|
|Statement of Financial Activities|14|
|Balance Sheet|15|
|Cash Flow Statement|16|
|Notes to the Financial Statements|17 to 29|
## **Cheshire South Methodist Circuit**
## **Trustees' Report**
The trustees present the annual report together with the financial statements and auditors' report of the charity for the year ended 31 August 2023.
## **OBJECTIVES & ACTIVITIES**
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 to mission to the communities we serve through our local churches. The individual churches are allocated to local ‘Mission Networks’ for effectiveness and mutual support.
## **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.
## **ACHIEVEMENTS & PERFORMANCE**
## **Discipleship and Mission**
In this period, the local churches were refocusing after the impact of the COVID-19 pandemic. Useful things learned during the pandemic have been incorporated into how the Circuit and local churches operate, including the use of Zoom and Telephone worship services and prayers. These offer opportunities for remote gathering for worship and business meetings, and includes those who are housebound or struggle to travel at night. This also reduces the number of car journeys in line with our environmental commitments. Local churches within the Circuit have been continuing to respond to the cost-of-living crisis. This can be seen in the Food Pantry at Sandbach, the Food Hub established in Alsager in October 2022, and in Whitchurch there is the Clothing Hub and More on Mondays/Thursdays offering a warm space. The “Mission Hubs” that were established last year have slowly continued to develop. They have been renamed “Mission Networks” to reflect the interconnected nature of the local churches within each grouping. There has been opportunity for fellowship within each Mission Network, as well as time within steering groups to prayerfully review existing mission and outreach, discern new opportunities and share resources to enrich our mission work. In addition to this, careful consideration is being made to see what additional lay worker support may be helpful.
## **Safeguarding – The Protection of children and vulnerable adults**
During the year 2022/23 both Advanced and Foundation Safeguarding training was resumed, both on line and face-to-face. Church Safeguarding Officers completed a Safeguarding Audit required by the District Safeguarding Officer by 31.1.23 and a further audit will be required by the end of February 2024. There are currently three Safeguarding Contracts in place, a fourth having been terminated following a recommendation from the Monitoring & Support Group in 2021 at the end of the 3-yrear review period and its risk assessment by Methodist HQ Safeguarding team.
## **Circuit Mission Project - The Haven - Building a community of Hope, Inclusivity and Faith**
The Haven continues to a “haven” for many, welcoming the broken, broken hearted, the lonely, the isolated. A place where people can talk and be listened to, where all are truly welcomed and valued. There is a real sense of belonging to a community/family. We are priviledged to journey with many through their challenges, joys and life events.
Page 1
## **Cheshire South Methodist Circuit**
## **Trustees' Report (continued)**
Over 300 people a week regularly attend the coffee shop/activities served by approximately 33 volunteers, the majority of whom have additional needs. All our volunteers have grown in confience and skills and value being a part of our community.
We receive very positive feedback on the impact the Haven is having on people’s mental well-being. A number have said they would not be here if it were not for their involvement with the Haven
## **Regular activities**
Tai Chi Tue & Wed 10-11 am, Chatty Crafts Tue 11.15- 1pm, Games Thur 1-2.30pm, Friendship Friday 10-11.30, Knit & Knatter Fri 1-2.30. The activites provide a “reason/excuse” for people to walk through the door, the majority being on their own enabling individuals to gain confidence and independence. We endeavour to respond to the needs of the community. Some of our service users were seeking bereavement support, but couldn’t find anything local and appropriate so we began “CAMEO” in April, an informal group for those who are bereaved, meeting monthly over coffee in a relaxed setting to support one another and share experiences.
The Haven also hosts Crewe Veteran’s Breakfast meeting every Wednesday – a self supporting meeting for those who have left the armed forces to support one another adjusting to civilian life, a number of whom have mental health issues including PTSD. The Veterans have become an integral part of our community.
## **Advent & Christmas**
A Christmas Fair was held in early December which was very well supported by the local community.
An advent trail was installed throughout December for people to reflect on characters from the Christmas story, with a modern twist. Community Coffee and Carols were enjoyed by many, supported by the ukelele group from the Wrenbury Mission Area
## **Lent & Café Church**
A monthly “Café Church” is held, offering informal worship and converstaion, particularly targeting people who do not regularly attend church from our local community.
A Lent study group based on the the Film “ The King’s Speech” was very well received.
## **Networking**
We have made good links with a local private hospital supporting women with personality and eating disorders. A number of their patients regularly attend groups or simply come for coffee to what has become for them “ a safe space”.
One long-term patient studying for a music degree has helped establish our “Havenly Choir”. The choir began in July and within a couple of weeks was attracting 30 people of all ages and abilities to enjoy the opportunity to sing together. It has become the highlight of the week for many, greatly improving people’s mental well-being.
Page 2
## **Cheshire South Methodist Circuit**
## **Trustees' Report (continued)**
## **The Haven Finances**
Our financial sustainabilty has been challenged this year, receiving the final payment of a 5 year Connexional Grant (£15,000 per year) combined with rising energy, food and staffing costs, and being unable to apply for grant funding this year.
The project remains a missional priority within the Circuit.
## **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. This is guided by the Quinquennial Inspections and Manse Inspections as well as feedback from the tenants. There was a change of Minister at the Sandbach Manse.
All properties are being reviewed to ensure that ownership is compatible with our Vision for the Circuit and as a result, permission was sought from TMCP to sell the manse in Nantwich. This went on the market in July 2023 and has now been sold (Feb 24)
Permission was also granted to sell the former Chapel at Hough and extensive work was needed to prepare it for auction in October 2023.
Permission was also granted to sell the former Chapel at Baddiley & Ravensmoor and this is due to go to auction in February 2024.
The issue with nonpayment of rent from one tenant and arrears that have built up since their tenancy began in December 2019 has been addressed. After seeking legal advice from Solicitors recommended by TMCP, Connexional consent under SO 931(5)(i) was given to begin possession proceedings. Notice was served to the tenants on 11th August 2023 in accordance with Section 8 of the 1988 Housing Act _._ A Serious Incident Report was voluntarily submitted to the Charity Commission, on behalf of the trustees, on Wednesday 6th September 2023.
Page 3
## **Cheshire South Methodist Circuit**
## **Trustees' Report (continued)**
## **FINANCIAL REVIEW**
It was a challenging year for the Circuit with a number of issues needing to be resolved. We had a long delay in preparing our audited accounts for 20/21 and 20/22 due to personal difficulties affecting the performance of our existing accountancy firm. There were also question marks over the legitimacy of the previous auditing process, but we are pleased that during the auditing of 20/21 and 21/22 there was nothing untoward found. The auditor has made a number of recommendations and observations that we have either answered or put into practice and we will report back to Trustees in the Feb 24 Circuit Meeting. The lack of payment from a tenant is reported in the Property section and we also had a related issue with the Managing Agent of our rented properties who ceased trading owing us monies. There were many other landlords involved and we took action before many others to redirect monies from tenants directly to Circuit accounts. We have made the relevant authorities aware and attempted to make claims from relevant bodies representing and regulating managing agents. Finally, we were unable to keep our cash reserves at the level outlined in our reserves policy. The Circuit had provided post Covid support to local churches by way of a 25% reduction in the assessment which meant a large reduction in income. This also was at a time when we were investing in a number of property maintenance projects. We had forecast the need to sell property to fund this gap but in the event were unable to sell property in a timely manner due a number of issues relating to the property market and then specific issues relating to each property where work needed doing before sales could go ahead. As a consequence we asked for support from the Methodist District by way of delaying our quarterly assessments of £27,000 for 2 quarters (June and September 23). In addition Unity Church provided a £25,000 loan for 6 months which was repaid in December 23. We wish to express our thanks for this kind gesture from both the District and Unity Church. We can now report that in February 24 the Circuit has sold the first property which will bring the level of reserves up to the reserves policy amount. Other properties are in the pipeline to be sold as the Circuit looks to its financial sustainability over the medium to long term. Plans are to be discussed at the February 24 Circuit Meeting of Trustees.
## **PLANS FOR THE FUTURE PERIOD**
Work within each Mission Network will continue into 2023-2024. During this period, we will work to develop a plan for sustainability. This will be in line with our Circuit Vision “A Faithful and Fruitful Future”, and firmly committed to the Circuit’s purpose of resourcing and enabling mission. We also intend to plan how we can work towards Net Zero Carbon as part of our mission.
## **STRUCTURE GOVERNANCE & MANAGEMENT**
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 3 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 & Chester, Shropshire and Wrexham.
Our constitutional practices can be found in www.methodist.org/ministers-and-office-holders/cpd
Page 4
## **Cheshire South Methodist Circuit**
## **Trustees' Report (continued)**
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 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 80 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 57 Local Preachers plus 1 on trial (i.e. in training for this vital ministry).
**Risk management -** the major risks to which the charity is exposed have been identified and mitigating actions are being developed. Appropriate controls are in place to provide reasonable assurance against fraud and financial error.
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## **Registered Charity number**
1142234
## **Principal address**
Broad Lane Methodist Chapel Audlem Road NANTWICH Cheshire CW5 7EB
## **Trustees**
In the 2022/2023 financial year our presbyters, lay employees and Circuit stewards were as follows:
## **Presbyters**
Revd Rob Hilton – Superintendent Revd Jeremy Tresise (until Aug 23) Revd Ian Duffy (until Aug 23) Revd Sarah Butcher
Page 5
## **Cheshire South Methodist Circuit**
## **Trustees' Report (continued)**
Revd Robin Fox Revd Donna Broadbent -Kelly
**Deacon** Jill Henderson
## **Lay Workers**
Mr Stephen Parker-Aiken Mr Andy Townsend Ms Kathryn Davies Mr Jonathon Newbould Ms Elizabeth Morris (contractor) Mrs Heather Staniland (seconded from District) Mrs Jane Parker-Aiken
## **Circuit Administrators**
Ms Dorothy Milner Mrs Joanne Reeves (Finance)
## **Circuit Stewards**
Mrs Isabel Brislen (Senior Steward)
Dr Geoff Dickinson Mrs Ellen Cieka Mrs Pat Maidment Mr Gary Cliffe, Circuit Treasurer
More details about our Circuit and churches can be found at our web site http://www.cheshiresouth.org.uk
Trustees at 31st August 2023
|Trustees at 31st August 2023||
|---|---|
|Mrs Yvonne Alcock|Mrs Gill Merry|
|Mrs Anita Andrews|Mr Roger Millns|
|Mr Norman Bourne|Miss Dot Milner|
|Mrs Isabel Brislen|Mrs Elizabeth Morris|
|Rev'd Donna Broadbent Kelly|Mrs Janet Mountford|
|Mrs Jayne Bunn|Mrs Briony Myles Hook|
|Mrs Yvonne Bushill|Mr Jonny Newbould|
|Rev'd Sarah Butcher|Mrs Jane Parker Aiken|
|Mrs Wendy Cain|Mr Stephen Parker Aiken|
|Mrs Ellen Cieka|Mrs Julia Parton|
|Mr Gary Cliffe|Mrs Margaret Penaluna|
|Mr Cyril Cooper|Mr Alan Pimlott|
|Miss Alicia Crompton|Mrs Sheila Scragg|
Page 6
## **Cheshire South Methodist Circuit**
## **Trustees' Report (continued)**
|Mr David Crompton|Miss Sarah Simpson|
|---|---|
|Mr Malcolm Crook|Mr David Smith|
|Mrs Kathryn Davies|Mrs Jenny Smith|
|Dr Geoff Dickinson|Mrs Susan Smith|
|Mr Graham Dimelow|Mrs Heather Staniland|
|Miss Jane Eardley|Mr Andrew Stolworthy|
|Mrs Jean Ellershaw|Mrs Norma Stolworthy|
|Dr Karen Evans|Mr Alec Sutton|
|Rev'd Robin Fox|Mr Clive Taylor|
|Mrs Sally Graham|Mrs Sue Taylor|
|Mrs Liz Grundy|Mr Andy Townsend|
|Mr Andrew Griffin|Mr Roland Twydell|
|Mr David Griffith|Mr Fred Wright|
|Dr Michael Guy|Mrs Alison Wynne|
|Mr Graham Hassall|Mrs Suzanne Young|
|Mrs Philippa Hellingman||
|Deacon Jill Henderson||
|Rev'd Rob Hilton||
|Mrs Jacqui Holland||
|Mrs Michelle Holland||
|Mrs Glenys Hollins||
|Mrs Ann Horsfield||
|Mrs Jill Howell||
|Mr Roger Hunt||
|Mr Paul Jackson||
|Mr David Johnson||
|Mrs Brenda Jones||
|Mrs Patricia Jones||
|Mrs Robina Lowndes||
|Mrs Marie Lumb||
|Mrs Pat Maidment||
|Mr David Maidment||
|Mrs Joyce Martin||
## **Principal address for Correspondence**
c/o The Senior Circuit Steward Cheshire South Circuit Broad Lane Methodist Church Audlem Road Nantwich CW5 7EB
Page 7
## **Cheshire South Methodist Circuit**
## **Trustees' Report (continued)**
## **Auditors & Accountants**
Bright Partnership Limited 1 Park Street Macclesfield Cheshire SK11 6SR
## **Solicitors**
Sintons LLP The Cube Barrack Road Newcastle upon Tyne NE4 6DB United Kingdom
## **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
## **Statement of Trustees' Responsibilities**
The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
The law applicable to charities 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 of the charity for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
Page 8
## **Cheshire South Methodist Circuit**
## **Trustees' Report (continued)**
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008, and the provisions of the constitution. The trustees 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.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
## **Disclosure of information to auditor**
Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
The annual report was approved by the trustees of the charity on .................... and signed on its behalf by:
......................................... Mr Gary Cliffe Trustee
Page 9
## **Cheshire South Methodist Circuit**
## **Independent Auditor's Report to the Members 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 2023, which comprise the Statement of Financial Activities, Balance Sheet, 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 United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charity's affairs as at 31 August 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **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 auditor 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 original financial statements were 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 auditor’s report 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.
Page 10
## **Cheshire South Methodist Circuit**
## **Independent Auditor's Report to the Members of Cheshire South Methodist Circuit (continued)**
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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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**
In the light of our knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.
We have nothing to report in respect of the following matters where the Charities (Accounts and Report) Regulations 2008 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the Statement of Trustees' Responsibilities (set out on page 8 and 9), the trustees are responsible for the preparation of the financial statements and for being satisfied that they 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.
## **Auditor Responsibilities for the audit of the financial statements**
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 an auditor’s report 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:
Page 11
## **Cheshire South Methodist Circuit**
## **Independent Auditor's Report to the Members of Cheshire South Methodist Circuit (continued)**
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:
- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- We identified the laws and regulations applicable to the charity through discussions with trustees and other management, and from our knowledge and experience of the charity sector - We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including Charities SORP FRS102, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;
- We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- Identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the charity's financial statements to material misstatements, including obtaining an understanding of how fraud might occur, by:
- Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override controls, we:
- Performed analytical procedures to identify any unusual or expected relationships;
- Tested journal entries to identify unusual transactions; and
- Investigate the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reading minutes of meetings of those charged with governance;
- enquiring of management as to actual potential litigation and claims; and
- reviewing correspondence with relevant regulators and the company's legal advisors where necessary.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but werenot limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reading minutes of meetings of those charged with governance;
- enquiring of management as to actual potential litigation and claims; and
- reviewing correspondence with relevant regulators and the company's legal advisors where necessary.
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 ofregulatory 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.
Page 12
## **Cheshire South Methodist Circuit**
## **Independent Auditor's Report to the Members of Cheshire South Methodist Circuit (continued)**
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charity trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the trustees those matters we are required to state to trustees 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 its trustees as a body, for our audit work, for this report, or for the opinions we have formed.
...................................... Mike Senior (Senior Statutory Auditor) Bright Partnership Ltd, Chartered Accountants & Business Advisor
1 Park Street Macclesfied Cheshire SK116SR
Date:.............................
Page 13
## **Cheshire South Methodist Circuit**
## **Statement of Financial Activities for the Year Ended 31 August 2023**
|**Note**
**Income and Endowments from:**
Donations and legacies
Charitable activities
Investment income
4
Other income
Total income
**Expenditure on:**
Raising funds
Charitable activities
Total expenditure
Gains/losses on investment assets
Net (expenditure)/income
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
15|**Unrestricted**
**funds**
**£**
4,971
407,607
4,176
46,444
463,198
(38,493)
(675,586)
(714,079)
(311)
(251,192)
(251,192)
5,238,767
4,987,575|**Total**
**2023**
**£**
4,971
407,607
4,176
46,444
463,198
(38,493)
(675,586)
(714,079)
(311)
(251,192)
(251,192)
5,238,767
4,987,575|**Total**
**2022**
**£**
34,145
483,575
1,426
39,266|
|---|---|---|---|
||||558,412|
||||(37,136)
(710,692)|
||||(747,828)
1,379,616|
||||1,190,200|
||||1,190,200
4,048,567|
||||5,238,767|
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2022 is shown in note 15.
The notes on pages 17 to 29 form an integral part of these financial statements. Page 14
## **Cheshire South Methodist Circuit**
## **(Registration number: 1142234) Balance Sheet as at 31 August 2023**
|**Note**
**Fixed assets**
Tangible assets
11
Investments
12
**Current assets**
Debtors
13
Cash at bank and in hand
**Creditors: Amounts falling due within one year**
14
**Net current assets**
**Net assets**
**Funds of the charity:**
**Unrestricted income funds**
Unrestricted funds
**Total funds**
15|**2023**
**£**
4,855,083
-
4,855,083
81,003
118,794
199,797
(67,305)
132,492
4,987,575
4,987,575
4,987,575|**2022**
**£**
4,858,653
12,256|
|---|---|---|
|||4,870,909|
|||103,498
310,498|
|||413,996
(46,138)|
|||367,858|
|||5,238,767|
|||5,238,767|
|||5,238,767|
The financial statements on pages 14 to 29 were approved by the trustees, and authorised for issue on .................... and signed on their behalf by:
......................................... Mr Gary Cliffe Trustee
The notes on pages 17 to 29 form an integral part of these financial statements. Page 15
## **Cheshire South Methodist Circuit**
## **Cash Flow Statement for the Year Ended 31 August 2023**
|**Note**
**Cash flows from operating activities**
Net cash (expenditure)/income
**Adjustments to cash flows from non-cash items**
Depreciation
Profit on disposal of investments
Revaluation of investments
**Working capital adjustments**
Decrease in debtors
13
Increase in creditors
14
Net cash flows from operating activities
**Cash flows from investing activities**
Acquisitions of tangible assets
Proceeds from sale of tangible assets
Proceeds from sale of investments
Net cash flows from investing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at 1 September
Cash and cash equivalents at 31 August
**Reconciliation of net cash flow to movement in net funds**
(Decrease)/increase in cash
Net funds at 1 September 2022
Net funds at 31 August 2023|**2023**
**£**
(255,286)
3,643
-
311
(251,332)
22,495
25,261
(203,576)
(73)
-
11,945
11,872
(191,704)
310,498
118,794
(191,704)
310,498
118,794|**2022**
**£**
1,190,200
3,441
(1,378,794)
-|
|---|---|---|
|||(185,153)
7,386
23,280|
|||(154,487)|
|||(1,380,438)
118,000
1,379,616|
|||117,178|
|||(37,309)
347,807|
|||310,498|
|||310,498
-|
|||310,498|
All of the cash flows are derived from continuing operations during the above two periods.
The notes on pages 17 to 29 form an integral part of these financial statements. Page 16
## **Cheshire South Methodist Circuit**
## **Notes to the Financial Statements for the Year Ended 31 August 2023**
## **1 Accounting policies**
## **Statement of compliance**
The financial statements have been prepared in accordance with the second edition of the Charities Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.
## **Basis of preparation**
Cheshire South Methodist Circuit meets the definition of a public benefit entity under FRS 102. The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.
## **Going concern**
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
## **Income and endowments**
Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.
## _**Donations and legacies**_
Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.
## **Expenditure**
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
## _**Raising funds**_
These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.
## _**Charitable activities**_
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Page 17
## **Cheshire South Methodist Circuit**
## **Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)**
## **Support costs**
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.
## **Taxation**
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
## **Tangible fixed assets**
Individual fixed assets costing are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
## **Depreciation and amortisation**
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
Plant and Machinery - Straight line over 5 years Fixtures and fittings - Straight line over 5 years Freehold property - not depreciated
## **Fixed asset investments**
Fixed asset investments, other than programme related investments, are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financial Activities in the period of disposal.
Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end.
## **Trade debtors**
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.
Page 18
## **Cheshire South Methodist Circuit**
## **Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)**
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
## **Trade creditors**
are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
## **Borrowings**
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
## **Fund structure**
Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity.
## **Pensions and other post retirement obligations**
The charity operates a defined benefit pension scheme.Typically defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation.
The liability recognised in the Balance Sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the reporting date minus the fair value of plan assets. The defined benefit obligation is measured using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future payments by reference to market yields at the reporting date on high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability.
Actuarial gains and losses are charged or credited to other comprehensive income in the period in which they arise.
Page 19
## **Cheshire South Methodist Circuit**
## **Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)**
## **Financial instruments**
## _**Classification**_
Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.
## _**Recognition and measurement**_
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.
Page 20
## **Cheshire South Methodist Circuit**
## **Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)**
## _**Debt instruments**_
Debt instruments which meet the following conditions are subsequently measured at amortised cost using the effective interest method:
(a) The contractual return to the holder is (i) a fixed amount; (ii) a positive fixed rate or a positive variable rate; or (iii) a combination of a positive or a negative fixed rate and a positive variable rate.
(b) The contract may provide for repayments of the principal or the return to the holder (but not both) to be linked to a single relevant observable index of general price inflation of the currency in which the debt instrument is denominated, provided such links are not leveraged.
(c) The contract may provide for a determinable variation of the return to the holder during the life of the instrument, provided that (i) the new rate satisfies condition (a) and the variation is not contingent on future events other than (1) a change of a contractual variable rate; (2) to protect the holder against credit deterioration of the issuer; (3) changes in levies applied by a central bank or arising from changes in relevant taxation or law; or (ii) the new rate is a market rate of interest and satisfies condition (a).
(d) There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods.
(e) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in levies applied by a central bank or arising from changes in relevant taxation or law.
(f) Contractual provisions may permit the extension of the term of the debt instrument, provided that the return to the holder and any other contractual provisions applicable during the extended term satisfy the conditions of paragraphs (a) to (c).
Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.
With the exception of some hedging instruments, other debt instruments not meeting these conditions are measured at fair value through profit or loss.
Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment.
## _**Investments**_
Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded or their fair value is reliably measurable) are measured at fair value through profit or loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment.
Investments in subsidiaries and associates are measured at cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored.
Page 21
## **Cheshire South Methodist Circuit**
## **Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)**
## _**Derivative financial instruments**_
The charity uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements. The charity does not hold or issue derivative financial instruments for speculative purposes.
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in statement of financial activities immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in statement of financial activities depends on the nature of the hedge relationship.
## _**Fair value measurement**_
The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.
## **2 Income from donations and legacies**
|Donations and legacies;
Mission grants - North Street
Insurance claim
Donations
**Total for 2023**
**Total for 2022**|**Unrestricted**
**funds**
**General**
**£**
4,000
171
800
4,971
34,145|**Total**
**funds**
**£**
4,000
171
800|
|---|---|---|
|||4,971|
|||34,145|
## **3 Income from charitable activities**
|Assessments
Rental Income
Grants
**Total for 2023**
**Total for 2022**|**Unrestricted**
**funds**
**General**
**£**
316,441
3,906
87,260
407,607
483,575|**Total**
**funds**
**£**
316,441
3,906
87,260|
|---|---|---|
|||407,607|
|||483,575|
Page 22
## **Cheshire South Methodist Circuit**
## **Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)**
## **4 Investment income**
|Other investment income
**Total for 2023**
**Total for 2022**
**5**
**Other income**
Fundraising events
Cafe Income
Other income
**Total for 2023**
**Total for 2022**|**Unrestricted**
**funds**
**General**
**£**
4,176
4,176
1,426
**Unrestricted**
**funds**
**General**
**£**
795
44,332
1,317
46,444
39,266|**Total**
**funds**
**£**
4,176|
|---|---|---|
|||4,176|
|||1,426|
|||**Total**
**funds**
**£**
795
44,332
1,317|
|||46,444|
|||39,266|
## **6 Expenditure on raising funds**
## **a) Costs of trading activities**
|**Note**
Purchases
**Total for 2023**
**Total for 2022**|**Unrestricted**
**funds**
**General**
**£**
38,493
38,493
37,136|**Total**
**funds**
**£**
38,493|
|---|---|---|
|||38,493|
|||37,136|
- **7 Expenditure on charitable activities**
Page 23
## **Cheshire South Methodist Circuit**
## **Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)**
|**Note**
Charitable Activities
Staff costs
Allocated support costs
**Total for 2023**
**Total for 2022**|**Unrestricted**
**funds**
**General**
**£**
287,929
380,092
7,565
675,586
710,692|**Total**
**funds**
**£**
287,929
380,092
7,565|
|---|---|---|
|||675,586|
|||710,692|
Page 24
## **Cheshire South Methodist Circuit**
## **Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)**
## **8 Trustees remuneration and expenses**
During the year the charity made the following transactions with trustees:
Twenty four trustees' received remuneration for the year ended 31 August 2023, the total paid to them was £282,750 (2021 - £282,750). 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 2023, the total paid to them was £43,329 (2022 - £43,329).
## **9 Staff costs**
The aggregate payroll costs were as follows:
|**Staff costs during the year were:**
Wages and salaries
Social security costs
Pension costs|**2023**
**£**
307,803
18,323
53,966
380,092|**2022**
**£**
288,889
18,828
96,109|
|---|---|---|
|||403,826|
The monthly average number of persons (including senior management / leadership team) employed by the charity during the year expressed as full time equivalents was as follows:
|Ministers and supernumeraries
Lay pastoral & Youth employees
Circuit administrators|**2023**
**No**
8
6
3
17|**2022**
**No**
8
6
3|
|---|---|---|
|||17|
No employee received emoluments of more than £60,000 during the year
## **10 Auditors' remuneration**
|**Other fees to auditors**
The auditing of accounts of any associate of the charity|**2023**
**£**
4,560|**2022**
**£**
5,091|
|---|---|---|
Page 25
## **Cheshire South Methodist Circuit**
## **Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)**
## **11 Tangible fixed assets**
|**Cost**
At 1 September 2022
Additions
At 31 August 2023
**Depreciation**
At 1 September 2022
Charge for the year
At 31 August 2023
**Net book value**
At 31 August 2023
At 31 August 2022
**12 Fixed asset investments**
Other investments|**Freehold**
**property**
**£**
4,853,205
-
4,853,205
-
-
-
4,853,205
4,853,205|**Furniture and**
**fittings**
**£**
20,835
73
20,908
15,387
3,643
19,030
1,878
5,448|**Plant and**
**Machinery**
**£**
2,847
-||**Total**
**£**
4,876,887
73|
|---|---|---|---|---|---|
|||20,908|2,847||4,876,960|
|||15,387
3,643|2,847
-||18,234
3,643|
|||19,030|2,847||21,877|
|||1,878|-||4,855,083|
|||5,448|-||4,858,653|
||||**2023**
**£**
-||**2022**
**£**
12,256|
Page 26
## **Cheshire South Methodist Circuit**
## **Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)**
## **Other investments**
|**Cost or Valuation**
At 1 September 2022
Revaluation
Disposals
At 31 August 2023
**Net book value**
At 31 August 2023
At 31 August 2022
**13 Debtors**
Trade debtors
Prepayments
Other debtors
**14 Creditors: amounts falling due within one year**
Trade creditors
Other taxation and social security
Other creditors
Accruals||**Listed**
**investments**
**£**
12,256
(312)
(11,944)
-
-
12,256
**2023**
**£**
23,905
28,316
28,782
81,003
**2023**
**£**
43,335
8,235
3,975
11,760
67,305|**Listed**
**investments**
**£**
12,256
(312)
(11,944)
-
-
12,256
**2023**
**£**
23,905
28,316
28,782
81,003
**2023**
**£**
43,335
8,235
3,975
11,760
67,305|**Total**
**£**
12,256
(312)
(11,944)
-
-
12,256
**2022**
**£**
1,496
25,219
76,783|
|---|---|---|---|---|
|||-|||
|||-|||
|||12,256|||
|||**2023**
**£**
23,905
28,316
28,782
81,003
**2023**
**£**
43,335
8,235
3,975
11,760
67,305|||
|||||103,498|
|||||**2022**
**£**
31,244
-
-
14,894|
|||||46,138|
Page 27
## **Cheshire South Methodist Circuit**
## **Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)**
## **15 Funds**
|**15 Funds**|||||
|---|---|---|---|---|
|**Unrestricted funds**
**_General_**
General fund
**Unrestricted funds**
**_General_**
General fund|**Balance at**
**1**
**September**
**2022**
**£**
5,238,767
**Balance at**
**1**
**September**
**2021**
**£**
4,048,567|**Incoming**
**resources**
**£**
463,198
**Incoming**
**resources**
**£**
558,412|**Resources**
**expended**
**£**
**Other**
**recognised**
**gains/(losses)**
**£**
(714,079)
(311)
**Resources**
**expended**
**£**
**Other**
**recognised**
**gains/(losses)**
**£**
(747,828)
1,379,616|**Balance at**
**31 August**
**2023**
**£**
4,987,575|
|||||**Balance at**
**31 August**
**2022**
**£**
5,238,767|
Page 28
## **Cheshire South Methodist Circuit**
## **Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)**
## **16 Pension and other schemes**
## **Defined benefit pension schemes**
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 2023 £X,XXX (2022 £7,680 ). 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 inthe 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 £53,966 (£96,109 in 2022)
Methodist Ministers Pension Scheme (MMPS)
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.
## **17 Related party transactions**
There were no related party transactions in the year.
Page 29
## **Cheshire South Methodist Circuit**
## **Detailed Statement of Financial Activities for the Year Ended 31 August 2023**
|**Income and Endowments from:**
Donations and legacies (analysed below)
Charitable activities (analysed below)
Investment income (analysed below)
Other income (analysed below)
Total income
**Expenditure on:**
Raising funds (analysed below)
Charitable activities (analysed below)
Total expenditure
Gains/losses on investment assets
Net (expenditure)/income
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward|**Total**
**2023**
**£**
4,971
407,607
4,176
46,444
463,198
(38,493)
(675,586)
(714,079)
(311)
(251,192)
(251,192)
5,238,767
4,987,575|**Total**
**2022**
**£**
34,145
483,575
1,426
39,266|
|---|---|---|
|||558,412|
|||(37,136)
(710,692)|
|||(747,828)
1,379,616|
|||1,190,200|
|||1,190,200
4,048,567|
|||5,238,767|
This page does not form part of the statutory financial statements. Page 30
## **Cheshire South Methodist Circuit**
## **Detailed Statement of Financial Activities for the Year Ended 31 August 2023 (continued)**
|**_Donations and legacies_**
Donations
Grant Received for Mission
Furlough income
Insurance claim
**_Charitable activities_**
Assessment income
Grants receivable
Rental income
**_Investment income_**
Investment income
**_Other income_**
Fundraising events
Cafe income
Other income
**_Raising funds_**
North Street Cafe expenses
**_Charitable activities_**
Grants payable
Wages and salaries
Employer NIC
Pensions
Temporary Staff
Staff training
Assessments
Manse Expenses
Quinquennial Cost
Youth Mission Cost
Insurance
Rented property expenses
Telephone and fax|**Total**
**2023**
**£**
800
4,000
-
171
4,971
316,441
3,906
87,260
407,607
4,176
4,176
795
44,332
1,317
46,444
(38,493)
(38,493)
(56,269)
(307,803)
(18,323)
(53,966)
(10,612)
(2,905)
(108,224)
(44,206)
(2,770)
(2,594)
(4,306)
(595)
(1,762)|**Total**
**2022**
**£**
12,538
15,000
602
6,005|
|---|---|---|
|||34,145|
|||424,022
4,000
55,553|
|||483,575|
|||1,426|
|||1,426|
|||840
37,807
619|
|||39,266|
|||(37,136)|
|||(37,136)|
|||(4,880)
(288,889)
(18,828)
(96,109)
(5,149)
(6,888)
(107,324)
(90,566)
(5,695)
(2,812)
(430)
-
(1,274)|
This page does not form part of the statutory financial statements. Page 31
## **Cheshire South Methodist Circuit**
## **Detailed Statement of Financial Activities for the Year Ended 31 August 2023 (continued)**
|IT Support and software
Printing, postage and stationery
Legacy Property expenses
Trade subscriptions
Sundry expenses
Travel and subsistence
Customer entertaining (disallowable for tax)
Accountancy and Auditing fees
Management fees
Legal and professional fees
Bank charges
Depreciation of fixtures and fittings|**Total**
**2023**
**£**
(8,125)
(1,221)
(25,325)
(1,665)
(2,093)
(10,877)
(455)
(4,560)
(282)
(2,966)
(39)
(3,643)
(675,586)|**Total**
**2022**
**£**
(11,694)
(2,599)
(10,011)
(324)
(1,370)
(10,947)
-
(5,091)
(4,640)
(31,744)
13
(3,441)|
|---|---|---|
|||(710,692)|
This page does not form part of the statutory financial statements. Page 32