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2025-08-31-accounts

Draft Financial Statements at 20 May 2026 at 12:59:21

Charity registration number 1142234 (England and Wales)

CHESHIRE SOUTH METHODIST CIRCUIT

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

Draft Financial Statements at 20 May 2026 at 12:59:21 CHESHIRE SOUTH METHODIST CIRCUIT

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

Mr G Cliffe Mrs B C Myles-Hook Mrs E D Cieka Mr G J Dickinson Mr R P Jackson Rev R O Hilton Mrs P A Maidment Miss D A Milner Mrs H J Staniland Mrs D M Broadbent-Kelly Mr N Bourne Mrs J Bunne Mrs A Andrews Mr C Cooper Miss A Crompton Mr D Crompton Mr M Crook Mrs K Davies Mr G Dimelow Miss J Eardley Mrs J Ellershaw Mrs S Graham Mrs L Grundy Mr D Griffith Dr M Guy Mr G Hassall Mrs J Holland Mrs M Holland Mrs G Hollins Mrs R Lowndes Mrs M Lumb Mr D Maidment Mr R Millns Mr J Newbould Mrs J Parker Aiken Mr S Parker Aiken Mrs J Parton Mr A Pimlott Mrs S Scragg Miss S Simpson Mr D Smith Mrs J Smith Mrs S Smith Mrs N Stolworthy Mr C Taylor Mr A Townsend Mr R Twydell Mr F Wright Mrs A Wynne Mrs S Young Mrs J Martin Mrs A Horsfield Mrs J Howell Mr R Hunt

Draft Financial Statements at 20 May 2026 at 12:59:21 CHESHIRE SOUTH METHODIST CIRCUIT

LEGAL AND ADMINISTRATIVE INFORMATION

Mr P Jackson Mr D Johnson Mrs B Jones Mrs H Robertson Rev'd D Westhead Mrs A Ashton Rev'd C A Lawrence Ms J Reeves Mrs I Simpson Charity number (England and Wales) 1142234 Principal address c/o The Senior Circuit Steward Cheshire South Circuit Broad Lane Methodist Church Audlem Road Nantwich CW5 7EB Auditor Champion Accountants LLP 2nd Floor Refuge House 33-37 Watergate Row Chester CH1 2LE Bankers The Co-Operative Bank plc PO Box 250 Skelmersdale WN8 6WT The Central Board of the Methodist Church 9 Bonhill Street London EC2A 4DJ Solicitors Sintons LLP The Cube Barrack Road Newcastle Upon Tyne NE4 6DB

Draft Financial Statements at 20 May 2026 at 12:59:21 CHESHIRE SOUTH METHODIST CIRCUIT

CONTENTS

Page
Trustees' report 1 - 7
Statement of Trustees' responsibilities 8
Independent auditor's report 9 - 11
Statement of financial activities 12
Balance sheet 13
Statement of cash flows 14
Notes to the financial statements 15 - 30

Draft Financial Statements at 20 May 2026 at 12:59:21 CHESHIRE SOUTH METHODIST CIRCUIT

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 AUGUST 2025

The trustees present their annual report and financial statements for the year ended 31 August 2025.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "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)".

Objectives and 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 have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

Discipleship and Mission

The Circuit has continued to implement the five-year Circuit Mission Plan in line with our Circuit Vision “A Faithful and Fruitful Future”. This identifies seven priorities, summarised as follows:

i) developing worship and equipping people for mission; ii) supporting governance across the Circuit; iii) enabling mission through sustainable resourcing; iv) creating places of belonging and encounter for those outside the traditional church; v) supporting churches to discern their future and mission; vi) enabling mission through caring; and vii) enabling churches to support local community needs.

The Mission Networks have continued to reflect on mission priorities in their areas. Work in the areas highlighted in the previous report have continued — i.e. the Food Pantry at Sandbach, the Food Hub established in Alsager in October 2022, and in Whitchurch the Clothing Hub and More on Mondays/Thursdays offering a warm space.

Following the external audit of the churches in the Sandbach and Alsager Network it was a agreed that a Lay Pastor be appointed to support work amongst the elderly and lonely within the network. An appointment has been made to commence in September 2025. Additionally a grant has been successfully sought to recruit a lay worker to support the Haven and the Alsager Dinner Hub from September 2026 through the Methodist New Places New People initiative.

In Nantwich, efforts continue to implement a 3-year mission plan to develop activities such as a “Drop and Shop” club and look for other ways that they can use the church centre for outreach. The role for a centre development manager was filled but unfortunately had to be curtailed. An administrative role is being advertised to support the ongoing work.

A Lay Pastor continues to be deployed in the Crewe churches to promote discipleship and outreach within those churches.

Draft Financial Statements at 20 May 2026 at 12:59:21 CHESHIRE SOUTH METHODIST CIRCUIT

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

Safeguarding – The Protection of Children and Vulnerable Adults

During the year 2024/25 both Advanced and Foundation Safeguarding training courses were held, both on line and face-to-face. Church Safeguarding Officers completed a Safeguarding Audit required by the District Safeguarding Officer by March 2025 and a further audit will be required by the end of March 2026. There are currently three Safeguarding Contracts in place. A District Safeguarding Conference in October 2024 was attended by the circuit and a number of church safeguarding officers.

Property

There continues to be a programme of repairs, maintenance and refurbishment of manses that are lived in by Ministers, used by the District and let out to tenants. This is guided by the Quinquennial Inspections and Manse Inspections as well as feedback from the tenants.

Two new ministers were stationed in the Circuit from Sept 25 and this resulted in a change of Minister in the Shavington Manse at the end of August. Following a review of requirements, permission was granted by TMCP to sell the manse at Audlem and purchase a new manse in Nantwich for the other new Minister. This purchase completed in August and the former manse in Audlem is on the market.

All properties continue to be reviewed to ensure that ownership is compatible with our Vision for the Circuit and as a result, in October 24, the Circuit Trustees agreed that the former manse at Haslington would be withdrawn from the market and used by the District to accommodate the District Mission Enabler from December instead of the former manse in Crewe. The latter was then put on the market with the permission of TMCP and the sale completed in June 25.

In addition, following permission from TMCP, the former manse at Brown Knowl was sold to the existing tenant and

the sale completed in March 25.

As the Circuit now has only one private tenant and two commercial rented properties, the decision was taken to end the agreement with the Lettings Agent at the end of January 25 and manage the properties within the Circuit. In February, a new AST with annual rent review was signed for the private tenancy. In June, a new 5 year lease was drawn up for one of the Commercial Properties by a Connexional approved solicitor and a 5 year rent agreement is now in place. The lease for the other commercial property has a further 12 years to run.

Property and asset valuation

The way we account for Circuit properties was reset during the previous year. We now differentiate between investment properties that are not used for day-to-day Circuit purposes and these have been revalued in line with accounting requirements and Methodist guidance. Other properties, such as manses occupied by Ministers, continue to be held at their original values, subject to annual impairment reviews.

Financial review

The Circuit remained financially stable during 2024/25, with sufficient reserves and cash balances to meet its ongoing commitments. Income continued to be drawn mainly from assessments, lettings, investment income and other Circuit sources, while expenditure was focused on ministry, staffing, property, mission support and wider Methodist commitments.

As in previous years, the Circuit continues to face financial pressure from rising costs, changing patterns of church membership and attendance, and the need to maintain a sustainable property base. Careful budget management has therefore remained important, alongside regular review of reserves, property liabilities and future mission priorities.

The trustees are satisfied that the Circuit remains a going concern, but recognise the need for continued financial discipline, realistic budgeting and strategic planning to ensure resources are used effectively in support of the Circuit’s mission. The year ended in deficit, this was manageable within existing reserves, but it reinforces the need to review future income, expenditure and property commitments carefully.

Draft Financial Statements at 20 May 2026 at 12:59:21 CHESHIRE SOUTH METHODIST CIRCUIT

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

Reserves policy

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

Plans for future periods

During 2024–2025, focus within the Circuit will be on delivering the five-year Mission Plan, including appropriate review in the spring of 2025. The Mission Networks will continue to support the local churches in their mission in line with our Circuit Vision “A Faithful and Fruitful Future”.

The Circuit is firmly committed to resourcing and enabling mission; however, this will need to be tempered with concerns about sustainability as Circuit membership is expected to continue to decline in the short term.

In thinking about working towards Net Zero Carbon, the Circuit will be undertaking a review of the Circuit Manses to ensure that they all meet the required standards for energy efficiency. The Property Sub-Group of the CLT has seconded a person with recent experience on climate issues and church buildings to advise on these issues.

Draft Financial Statements at 20 May 2026 at 12:59:21 CHESHIRE SOUTH METHODIST CIRCUIT

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

Structure, governance and 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 22 church organisations. Our churches are separate charitable organisations; 4 are registered with the Charity Commission and the remaining 18 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 at www.methodist.org.uk/ministers-and-office-holders/cpd

The registered charity named ‘Cheshire South Methodist Circuit’ is primarily an administrative 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 coordination 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 1 September 2025 there were 63 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 55 Local Preachers plus 1 on trial (i.e. in training for this vital ministry).

The trustees who served during the year and up to the date of signature of the financial statements were: Mr G Cliffe Mrs B C Myles-Hook Mrs E D Cieka Mr G J Dickinson Mr R P Jackson Rev R O Hilton Mrs P A Maidment Miss D A Milner Mrs H J Staniland Mrs D M Broadbent-Kelly Mr N Bourne Mrs J Bunne Mrs A Andrews Mr C Cooper Miss A Crompton Mr D Crompton Mr M Crook

Draft Financial Statements at 20 May 2026 at 12:59:21 CHESHIRE SOUTH METHODIST CIRCUIT

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

Mrs K Davies Mr G Dimelow Miss J Eardley Mrs J Ellershaw Mrs S Graham Mrs L Grundy Mr D Griffith Dr M Guy Mr G Hassall Mrs J Holland Mrs M Holland Mrs G Hollins Mrs R Lowndes Mrs M Lumb Mr D Maidment Mr R Millns Mr J Newbould Mrs J Parker Aiken Mr S Parker Aiken Mrs J Parton Mr A Pimlott Mrs S Scragg Miss S Simpson Mr D Smith Mrs J Smith Mrs S Smith Mrs N Stolworthy Mr C Taylor Mr A Townsend Mr R Twydell Mr F Wright Mrs A Wynne Mrs S Young Mrs J Martin Mrs A Horsfield Mrs J Howell Mr R Hunt Mr P Jackson Mr D Johnson Mrs B Jones Mrs H Robertson Rev'd D Westhead Mrs A Ashton Rev'd C A Lawrence Ms J Reeves Mrs I Simpson

Draft Financial Statements at 20 May 2026 at 12:59:21 CHESHIRE SOUTH METHODIST CIRCUIT

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

Recruitment and appointment of trustees

Trustees are appointed in accordance with the constitutional practices of the Methodist Church. Members of the Circuit Meeting are automatically trustees under the Methodist Church governance structure. Additional trustees may be nominated by the local churches and are approved at the Circuit Meeting. New trustees are provided with induction materials outlining their responsibilities and are encouraged to attend safeguarding and governance training organised by the Circuit and the District.

Trustees

In the 2024/2025 financial year our presbyters, lay employees and Circuit stewards were as follows:

Presbyters

Revd Rob Hilton - Superintendent Revd Sarah Butcher Revd Robin Fox Revd Donna Broadbent -Kelly Revd Carolyn Lawrance

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

Dr Geoff Dickinson (Senior Steward) Mrs Ellen Cieka (Staffing) Mr Gary Cliffe (Circuit Treasurer) Mrs Briony Myles-Hook (Property)

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.

Custodian Trusteeship

All property held by the Circuit is held on the Model Trusts of the Methodist Church Act 1976. Legal title to these properties is vested in The Trustees for Methodist Church Purposes (TMCP), who act as Custodian Trustees. The Cheshire South Methodist Circuit acts as the Managing Trustees and is responsible for the day-to-day management, maintenance, and use of the properties in accordance with Methodist Church law and policy.

Draft Financial Statements at 20 May 2026 at 12:59:21 CHESHIRE SOUTH METHODIST CIRCUIT

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

The Trustees' report was approved by the Board of Trustees.

..............................

Mr G Cliffe Trustee Date: .............................................

Draft Financial Statements at 20 May 2026 at 12:59:21 CHESHIRE SOUTH METHODIST CIRCUIT

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 AUGUST 2025

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

The law applicable to charities in England and Wales 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 year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping sufficient 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 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.

Draft Financial Statements at 20 May 2026 at 12:59:21 CHESHIRE SOUTH METHODIST CIRCUIT

INDEPENDENT AUDITOR'S REPORT

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 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (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 Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of 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 in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Draft Financial Statements at 20 May 2026 at 12:59:21 CHESHIRE SOUTH METHODIST CIRCUIT

INDEPENDENT AUDITOR'S REPORT (CONTINUED) 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 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 cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor 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 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.

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, is detailed below.

Extent to which the audit is considered capable of detecting irregularities, including fraud

The responsibility for the prevention and detection of irregularities, including fraud, lies with the trustees and with those charged with governance. The objectives of our audit in respect of irregularities and fraud are to assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient, appropriate audit evidence regarding the assessed risks and to respond appropriately to fraud or suspected fraud identified during the audit.

Audit procedures

We determine significant applicable laws and regulations through discussion with those charged with governance and our own knowledge of the industry and design audit procedures to help identify instances of non-compliance with those laws and regulations that may have a material effect on the financial statements.

We have identified the key risks of non-compliance with laws and regulations to be related to the financial reporting framework, FRS 102, the Charities Act 2011 and the Constitutional Practice and Discipline of the Methodist Church.

We consider the control environment and the procedures in place to address identified risks, including management override, non-compliance with laws and regulations and to prevent and detect fraud or irregularity. Our procedures are designed to provide reasonable assurance that the financial statements are free from material misstatement or error and include: enquiries of management and of staff in key compliance functions; review of reported incidents and reports from regulators; review of minutes of meetings of those charged with governance; review and testing of manual journals, relevant nominals and significant transactions outside the normal course of business; review of financial statement disclosures and testing to supporting documentation; performance of analytical procedures.

We are not responsible for preventing non-compliance and due to the inherent limitations of an audit, as described above, the audit cannot be relied upon to detect all instances of non-compliance with laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Draft Financial Statements at 20 May 2026 at 12:59:21 CHESHIRE SOUTH METHODIST CIRCUIT

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF CHESHIRE SOUTH METHODIST CIRCUIT

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 auditor’s 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.

Susan Harris MA ACA (Senior Statutory Auditor)

For and on behalf of Champion Accountants LLP, Statutory Auditor Chartered Accountants 2nd Floor Refuge House 33-37 Watergate Row Chester CH1 2LE Date: .........................

Champion Accountants LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

Draft Financial Statements at 20 May 2026 at 12:59:21 CHESHIRE SOUTH METHODIST CIRCUIT

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 AUGUST 2025

Unrestricted
Restricted
funds
funds
2025
2025
Notes
£
£
Income from:
Donations and legacies
3
5,965
3,001
Charitable activities
4
474,153
57,577
Other trading activities
5
843
-
Investments
6
96,244
-
Total income
577,205
60,578
Expenditure on:
Charitable activities
7
788,729
52,193
Other expenditure
13
25,936
-
Total expenditure
814,665
52,193
Net gains/(losses) on
investments
14
-
-
Net income/(expenditure) and
movement in funds
(237,460)
8,385
Reconciliation of funds:
Fund balances at 1 September
2024
4,697,715
10,879
Fund balances at 31 August
2025
4,460,255
19,264		 Total
Unrestricted
Restricted
funds
funds
2025
2024
2024
£
£
£
8,966
14,470
13,724
531,730
479,199
-
843
2,548
-
96,244
91,149
-
637,783
587,366
13,724
840,922
1,224,760
2,845
25,936
57,986
-
866,858
1,282,746
2,845
-
405,520
-
(229,075)
(289,860)
10,879
4,708,594
4,987,575
-
4,479,519
4,697,715
10,879		 Total
2024
£
28,194
479,199
2,548
91,149
601,090
1,227,605
57,986
1,285,591
405,520
(278,981)
4,987,575
4,708,594

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

Draft Financial Statements at 20 May 2026 at 12:59:21 CHESHIRE SOUTH METHODIST CIRCUIT

BALANCE SHEET

AS AT 31 AUGUST 2025

Notes
Fixed assets
Tangible assets
17
Investment property
18
Current assets
Debtors
19
Cash at bank and in hand
Creditors: amounts falling due within
one year
20
Net current assets
Total assets less current liabilities
The funds of the charity
Restricted income funds
23
Unrestricted funds
24		 2025
£
£
2,448,017
1,477,000
3,925,017
105,929
723,711
829,640
(275,138)
554,502
4,479,519
19,264
4,460,255
4,479,519		 2024
£
£
1,885,707
2,286,344
4,172,051
96,562
704,690
801,252
(264,709)
536,543
4,708,594
10,879
4,697,715
4,708,594		 2024
£
£
1,885,707
2,286,344
4,172,051
96,562
704,690
801,252
(264,709)
536,543
4,708,594
10,879
4,697,715
4,708,594
4,172,051
536,543
4,708,594
10,879
4,697,715
4,708,594

The financial statements were approved by the trustees on .........................

.............................. Mr G Cliffe Trustee

Draft Financial Statements at 20 May 2026 at 12:59:21 CHESHIRE SOUTH METHODIST CIRCUIT

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2025

2025
Notes
£
£
Cash flows from operating activities
Cash absorbed by operations
27
(319,840)
Investing activities
Purchase of tangible fixed assets
(566,727)
Proceeds from disposal of tangible fixed
assets
-
Proceeds from disposal of investment
property
809,344
Investment income received
96,244
Net cash generated from investing activities
338,861
Net cash generated from financing activities
-
Net increase in cash and cash equivalents
19,021
Cash and cash equivalents at beginning of year
704,690
Cash and cash equivalents at end of year
723,711		 2024
£
£
(303,963)
(13,575)
812,285
-
91,149
889,859
-
585,896
118,794
704,690

Draft Financial Statements at 20 May 2026 at 12:59:21 CHESHIRE SOUTH METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

1 Accounting policies

Charity information

Cheshire South Methodist Circuit is a Circuit within the Methodist Church in Great Britain and is governed by the Deed of Union, the Model Trusts and the Standing Orders contained in the Constitutional Practice and Discipline of the Methodist Church. The registered office is Broad Lane Methodist Church, Audlem Road, Nantwich, CW5 7EB.

1.1 Basis of preparation

The financial statements have been prepared in accordance with the charity's governing document, the Charities Act 2011, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "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)". The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

The charity earns income from the letting of property not currently required for its own use. These properties are mainly leased to commercial tenants, private individuals, and other charities. Such lettings are treated as investment activities as they generate income to support the Circuit’s charitable work.

Draft Financial Statements at 20 May 2026 at 12:59:21 CHESHIRE SOUTH METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings Not depreciated Plant and equipment Straight line over 5 years Fixtures and fittings Straight line over 5 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

1.8 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Draft Financial Statements at 20 May 2026 at 12:59:21 CHESHIRE SOUTH METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

1 Accounting policies

(Continued)

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

Investment Property Valuation

Investment property is measured at fair value at the reporting date based on formal valuations or known sales prices where sold post year-end.

Draft Financial Statements at 20 May 2026 at 12:59:21 CHESHIRE SOUTH METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

3 Income from donations and legacies

Unrestricted
Restricted
funds
funds
2025
2025
£
£
Donations and gifts
1,978
-
Grants Received for
Mission
3,987
3,001
5,965
3,001		 Total
Unrestricted
Restricted
funds
funds
2025
2024
2024
£
£
£
1,978
5,716
-
6,988
8,754
13,724
8,966
14,470
13,724		 Total
2024
£
5,716
22,478
28,194

4 Income from charitable activities

Unrestricted
Restricted
funds
funds
2025
2025
£
£
Mission & Ministry
Assessments Received
411,120
-
Grants & contributions
towards ministry roles
-
57,577
North St - Lettings &
Room hire
8,133
-
North St - Café Sales
Income
54,900
-
474,153
57,577		 Total
Unrestricted
Restricted
funds
funds
2025
2024
2024
£
£
£
411,120
418,129
-
57,577
-
-
8,133
8,847
-
54,900
52,223
-
531,730
479,199
-		 Total
2024
£
418,129
-
8,847
52,223
479,199

Charitable Activities

Income from charitable activities includes assessments received from local churches and income generated through The Haven project. This includes Café sales and room hire used for community engagement and mission activities, all of which directly further the charity’s charitable purpose of advancing the Christian faith and supporting the local community.

5 Income from other trading activities

Unrestricted Unrestricted
funds funds
2025 2024
£ £
North St - Fundraising Income 843 2,548

Draft Financial Statements at 20 May 2026 at 12:59:21 CHESHIRE SOUTH METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

6 Income from investments

Unrestricted Unrestricted
funds funds
2025 2024
£ £
Rental income 60,771 68,171
Interest receivable 35,473 22,978
96,244 91,149

Rental Income

This includes rental income from properties not used in ministry, including former manses, legacy church buildings, and commercial or residential properties held to generate income. As these assets are held for investment rather than for charitable use, related income and expenditure are treated as investment activities.

Draft Financial Statements at 20 May 2026 at 12:59:21 CHESHIRE SOUTH METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

7 Expenditure on charitable activities

Mission & Mission &
Ministry Ministry
2025 2024
£ £
Direct costs
Staff costs 190,288 148,642
Depreciation and impairment 4,417 261,997
Temporary Staff 2,370 6,210
District Assessment 121,957 118,405
Ministers Stipends 208,677 195,879
Manse Costs 39,366 38,045
Quinquennial Costs 4,000 3,050
Youth Mission Costs 6,683 5,648
Englesea Brook Chapel & Museum Costs 2,997 5,035
North Street Café Costs 35,486 33,286
Legacy Properties Costs 3,617 626
Circuit Mission Costs - 17,414
Ministers’ Housing Costs - 14,486
Ministry Travel & Mileage 13,226 12,340
Connexional Property Levy 47,265 254,664
District Levy on Model Trust Fund 17,118 17,134
697,467 1,132,861
Grant funding of activities (see note 8) 33,114 2,000
Share of support and governance costs (see note 9)
Support 61,610 57,951
Governance 48,731 34,793
840,922 1,227,605
Analysis by fund
Unrestricted funds 788,729 1,224,760
Restricted funds 52,193 2,845
840,922 1,227,605

The Haven Café

The Haven café operates as part of the Circuit’s mission and community outreach. All related running costs, including supplies, utilities, and staffing, are recognised as charitable expenditure as they directly support the charity’s objectives.

Draft Financial Statements at 20 May 2026 at 12:59:21 CHESHIRE SOUTH METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

8 Grants payable
Mission & Mission &
Ministry Ministry
2025 2024
£ £
Grants to institutions:
Alsager Wesley Place Church - 2,000
Unity Methodist Church 33,114 -
33,114 2,000
9 Support costs allocated to activities
Mission & Total
Ministry
2025 2024
£ £
Staff costs 22,872 14,563
Finance and administration 4,938 7,812
IT and communications 3,878 3,884
Postage, printing and stationery 1,881 1,927
Other general admin 8,974 (501)
Bank charges 53 24
Lay Worker Co-Ordinator 18,272 -
Irrecoverable debts 742 30,242
Governance 48,731 34,793
110,341 92,744
2025 2024
Governance costs comprise: £ £
Audit fees 9,120 10,800
Legal and professional 33,547 16,655
Management and administration 6,064 7,338
48,731 34,793
10 Net movement in funds 2025 2024
£ £
The net movement in funds is stated after charging/(crediting):
Fees payable for the audit of the charity's financial statements 9,120 10,800
Depreciation of owned tangible fixed assets 4,417 1,997
Impairment of owned tangible fixed assets - 260,000
Loss on disposal of tangible fixed assets - 27,845

Draft Financial Statements at 20 May 2026 at 12:59:21 CHESHIRE SOUTH METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

11 Trustees

During the year, seven trustees were employed by the charity in roles connected to the administration and delivery of the charity’s activities. These trustees were remunerated in accordance with the charity’s governing document, and their employment was approved through the appropriate Methodist Church governance procedures. All payments relate to services provided in connection with the charitable activities of the Circuit and not for duties carried out in their capacity as trustees.

The total remuneration paid to these trustees during the year amounted to £139,978. Employer National Insurance contributions amounted to £12,027, and employer pension contributions amounted to £7,384.

In addition, trustees were reimbursed £3,762 for expenses incurred on behalf of the charity (2024: £5,770). No other trustees received remuneration for their role as trustees.

During the year the charity made payments totalling £6,064 (2024: £7,338) to Inclusive Community Development CIC (ICD), an organisation controlled by trustee Gary Cliffe (Treasurer), in respect of the provision of treasury/financial support services to the charity. At 31 August 2025, an amount of £nil was outstanding (2024: £1,653). The costs have been included within support costs (governance) in the Statement of Financial Activities.

The charity also engaged suppliers owned by other trustees/layworkers during the year; these transactions are disclosed in the Related party transactions note.

12 Employees

The average monthly number of employees during the year was:

The average monthly number of employees during the year was:
Lay pastoral & Youth employees
Circuit administrators
Total
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2025
Number
12
2
14
2025
£
190,030
14,939
8,191
213,160		 2024
Number
10
2
12
2024
£
148,853
6,838
7,514
163,205

There were no employees whose annual remuneration was more than £60,000.

Draft Financial Statements at 20 May 2026 at 12:59:21 CHESHIRE SOUTH METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

13 Other expenditure

Unrestricted Unrestricted
funds funds
2025 2024
£ £
Net loss on disposal of tangible fixed assets - 27,845
Investment property costs 24,091 28,137
Property management fees 1,845 2,004
25,936 57,986

14 Gains and losses on investments

Unrestricted Unrestricted
funds funds
2025 2024
Gains/(losses) arising on: £ £
Revaluation of investments - 405,520

15 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

16 Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2025 2024
£ £
In respect of:
Property, plant and equipment - 260,000

Draft Financial Statements at 20 May 2026 at 12:59:21 CHESHIRE SOUTH METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

17 Tangible fixed assets

Freehold land
and buildings
£
Cost
At 1 September 2024
2,132,251
Additions
562,053
At 31 August 2025
2,694,304
Depreciation and impairment
At 1 September 2024
260,000
Depreciation charged in the year
-
At 31 August 2025
260,000
Carrying amount
At 31 August 2025
2,434,304
At 31 August 2024
1,872,251		 Plant and
equipment
Fixtures and
fittings
£
£
2,847
34,483
1,708
2,966
4,555
37,449
2,847
21,027
342
4,075
3,189
25,102
1,366
12,347
-
13,456		 Total
£
2,169,581
566,727
2,736,308
283,874
4,417
288,291
2,448,017
1,885,707
18
Investment property
Fair value
At 1 September 2024
Disposals
At 31 August 2025		 2025
£
2,286,344
(809,344)
1,477,000

Investment property comprises freehold land and buildings held to generate rental income. During the year, the charity obtained formal valuations for properties which were previously rented out but had historically been classified as tangible fixed assets. These properties met the definition of investment property in prior periods but were not previously measured at fair value.

Accordingly, the properties were reclassified as investment properties during the previous financial year and recognised at their carrying amount at the date of reclassification (being cost), and subsequently remeasured to fair value. The resulting fair value movement was recognised in the Statement of Financial Activities in the previous financial year.

Draft Financial Statements at 20 May 2026 at 12:59:21 CHESHIRE SOUTH METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

19 Debtors
2025 2024
Amounts falling due within one year: £ £
Trade debtors 17,807 23,676
Other debtors 68,785 53,357
Prepayments and accrued income 19,337 19,529
105,929 96,562
20 Creditors: amounts falling due within one year
19
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
20
Creditors: amounts falling due within one year		 2025
£
17,807
68,785
19,337
105,929		 2024
£
23,676
53,357
19,529
96,562
Notes
Other taxation and social security
Deferred income
21
Trade creditors
Other creditors
Accruals
21
Deferred income
Arising from Deferred restricted grants
Deferred income is included in the financial statements as follows:
Deferred income is included within:
Current liabilities
Movements in the year:
Deferred income at 1 September 2024
Released from previous periods
Resources deferred in the year
Deferred income at 31 August 2025		 2025
£
16,566
4,484
19,427
191,542
43,119
275,138
2025
£
4,484		 2024
£
3,687
15,500
17,296
194,465
33,761
264,709
2024
£
15,500
2025
£
4,484
15,500
(15,500)
4,484
4,484		 2024
£
15,500
-
-
15,500
15,500

Draft Financial Statements at 20 May 2026 at 12:59:21 CHESHIRE SOUTH METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

22 Retirement benefit schemes
2025 2024
Defined contribution schemes £ £
Charge to profit or loss in respect of defined contribution schemes 8,191 7,514

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

ds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may
Restricted funds The restricted fun be used.
23
At 1
Incoming
Resources
At 31 August		 September
resources
expended
2025		 2024 £
£
£
£		 -
-
-
-		 CCF - Wellbeing sessions (Veterans)
-
2,501
(2,501)
-		 Cheshire East BC - Grant for Solar Panels
8,159
-
(1,890)
6,269		 Chester & Stoke District - Grant for Solar Panels
2,720
-
(630)
2,090		 Chester & Stoke District - Oakhanger Project
-
15,500
(15,500)
-		 Chester & Stoke District - Nantwich Project
-
6,833
(6,833)
-		 Chester & Stoke District - Celebration event
-
500
(500)
-		 Coppenhall Church - Messy Church
-
1,331
(1,331)
-		 Oakhanger Project - Layworker contributions
-
9,911
(9,911)
-		 DRMG - Layworker contributions
-
5,246
(5,246)
-		 Crewe-by-Farndon Church - Layworker contributions
-
4,415
(4,415)
-		 Churches Together In Crewe - Layworker contributions
-
6,846
(1,641)
5,205		 Sandbach Town Council - Layworker contributions
-
7,496
(1,796)
5,700		 10,879
60,578
(52,193)
19,264
(Continued) At 31 August 2024 £ - 8,159 2,720 10,879
Resources expended £ (2,005) (630) (210) (2,845)
Incoming resources £ 2,005 8,789 2,930 13,724
At 1 September 2023 £ - - - -

Draft Financial Statements at 20 May 2026 at 12:59:21 CHESHIRE SOUTH METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

24 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 Incoming Resources Gains and At 31 August
September resources expended losses 2025
2024
£ £ £ £ £
General funds 4,697,715 577,205 (814,665) - 4,460,255
Previous year: At 1 Incoming Resources Gains and At 31 August
September resources expended losses 2024
2023
£ £ £ £ £
General funds 4,987,575 587,366 (1,282,746) 405,520 4,697,715
Analysis of net assets between funds
Unrestricted Restricted Total
funds funds
2025 2025 2025
£ £ £
At 31 August 2025:
Tangible assets 2,439,658 8,359 2,448,017
Investment properties 1,477,000 - 1,477,000
Current assets/(liabilities) 543,597 10,905 554,502
4,460,255 19,264 4,479,519
Unrestricted Restricted Total
funds funds
2024 2024 2024
£ £ £
At 31 August 2024:
Tangible assets 1,874,828 10,879 1,885,707
Investment properties 2,286,344 - 2,286,344
Current assets/(liabilities) 536,543 - 536,543
4,697,715 10,879 4,708,594

25 Analysis of net assets between funds

Draft Financial Statements at 20 May 2026 at 12:59:21 CHESHIRE SOUTH METHODIST CIRCUIT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

26 Related party transactions

Gary Cliffe is a trustee of the charity and acts as Treasurer. Inclusive Community Development CIC (ICD) is an organisation controlled by Gary Cliffe. During the year the charity was charged £6,064 (2024: £7,338) for treasury/financial support services provided by ICD. The arrangement was established following a full and open recruitment process and the contract was approved by the Circuit Leadership Team; in accordance with the charity’s conflict of interest procedures, Gary Cliffe took no part in the decision-making. At 31 August 2025, £nil was due to ICD (2024: £1,653).

During the year the charity received payments from Oakhanger Project, a business owned by trustee Rev Robert Osmond Hilton, totalling £14,094 (2024: £nil) in respect of grants for lay staff. At 31 August 2025, £750 was outstanding (2024 £nil).

During the year the charity made payments to Sandbach Carpet and Upholstery, a business owned by trustee/ layworker Stephen Parker-Aiken, totalling £135 (2024: £nil) in respect of carpet cleaning services for the Manse and North Street Café. Appropriate quotes were obtained and the work was approved by the relevant governance body; the connected trustee took no part in the decision-making. At 31 August 2025, £nil was outstanding (2024: £nil).

During the year the charity made payments to Ansen Building Services, a business owned by trustee/ layworker Ansen Townsend, totalling £180 (2024: £651) in respect of repairs and maintenance work. Appropriate quotes were obtained and the work was approved by the Property Committee; the connected trustee took no part in the decision-making. At 31 August 2025, £nil was outstanding (2024: £nil).

27

Cash absorbed by operations 2025 2024
£ £
Deficit for the year (229,075) (278,981)
Adjustments for:
Investment income recognised in statement of financial activities (96,244) (91,149)
(Gain)/loss on disposal of tangible fixed assets - 27,845
Fair value gains and losses on investments - (405,520)
Depreciation and impairment of tangible fixed assets 4,417 261,997
Movements in working capital:
(Increase) in debtors (9,367) (15,559)
Increase in creditors 21,445 181,904
(Decrease)/increase in deferred income (11,016) 15,500
Cash absorbed by operations (319,840) (303,963)

28 Analysis of changes in net funds

The charity had no material debt during the year.