THE METhODISTCHURCH-THE SALFORD CIRCUIT Registered Charity No 1143819 ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 THE MEfHODIST CHURCH-THE SALFORD CIRCUIT Reglstered Charity No 1143819 ANNUAL REPOFtr AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 ThE M￿H0O18T CHURCH-THE SALFORD CIRCUIT ADMIIIISTRATIVE INFCIIPMTION FOR THE YEAR ENDED 31 AUGUST 2 TRUSTEES Name Jean Amol Jane Austin Alan Barlow Brian 8artatt Carole Barratt Johll Best Biellda Blackndl Sheila Boulton 82rt)gra Briggg John Brocklehurst Lynette Brocklehursl Mike Brocklehurst Carole Buigess Norman Burgess Robert Burgess Rev. Daniel Burton Freda Cantwell Bemard Danids Ruth Dawson Ray Diury Phil East John Eaton Beryl Etnery David Errtery Rev. Charles Gorton Elaine Hall Elaine Harden Gordon Hardman Margaret Hardman Ena Hairison Fred H2rrison Janet Fligham Shelagh Hollington lan Hudd￿ston Hary Hunt Mylvia Hunt Brenda Jeffrey Selorm Klu Mavis Lamb Joy Leah Cath fven Rev John Palmèr Hilary Pri Rev. Kirn Ratdiffe Brenda Robèrts drey Roys Joyce Smethurst Rev Clare Stainsby Muriel Stiles Jim SLrtcliffe Liz Thomley Phil ThDrn￿Y Margaret Vaughan Sheila Wakèfièld Vera Williams Pat Vvllson Ronnie Wils￿) Jennifer Wnnington Appointed by: St Paul's Cirojit Meeting Wesley Circuit M￿ting CiroJrt Meeting Wesley Circuit Meeknng Monton Circjjrt Meettng lunb"112 Marth 2￿￿11 Mont( c1¥(￿rt meeb.ng Cir￿it Meeting The Height Cir(xJit Meeting Ex-offi(io Patn¢roft Wesley IAonlon Mont Ciiixjil Stevmd St Pavl's Ciicjit Stewatd Patrirn>ft Ex-offiao Glazebrook Emmanuel Etnmanuel Emmanuel Patrictoft Patncroft The Heoht Circuit Meeting L(M%l Pieathe¥s Glazebrook Glazebrook CTrcurt Steward The Hevjht St Paul"s Boundary Ro&1 L(KJ Preachers lunbl 12 March 2￿21) Ex-offiao lfrtxn 1 Septernber 20211 Ex-offiao {until 31 August 2(Y211 The HeMJht lunb"112 March 20211 Ex-offi(Jo luntsl 31 August 20211 ar￿1t Meeting st Paul's lun￿ 25 20211 Cii(yJtt m￿tsng CiTwiI Meeting Boundary Roa(J CircuÈt meeb.ng L(Mxl Pie&thers Emmanuel THE MEfHOOISTCHURCH-THE SALFORDCIRcIKr ADMINISTRAThIE INFORIAATION FOR THE YEAR ENDED 81 AUGUST 2(f21 CIRCUIT LEADERSHIP TEAM and Cirwtl Stewar(Is lall ofwtrKHn ate Tr￿￿tees) Rev C Stainsty Rev &)hn Palrner Mr P East Mrs J Austin Mrs C BLJrgess Mrs 8 Emery Mrs 8 Jefftey Rev K l Ratdiffe Mr M Styan Mrs E Thornley Klr P Thomley Superintwdent MinisteT lunb"131 Auwst 20211 Superintendent Minister lfr(xn 1 SeptemiEI 20211 Circuit Meebng Secretary {fr￿Tr 20 No¥en7ber 2020) lunbl 31 August 2C1211 (from 20 Nfwernber 20X)I (from 20 NiwembeT 20201 Ifrotn 20 N￿rnbeT 2D2DI SUPERINTENDENT MINISTER'S MANSE 15 SUnfi0￿Er Meadow Salford Manchester M44 6TD MANAGEMENT ACCOUNTANT Andrew Slim Lirnrted 15 W(xX41￿dS Way Middletcx) Marthesler M24 1WL INDEPENDENT EXAMINER Peter Smith BA FCA DChA HGA A￿￿)UntantS & Financial Consuiiants Ltd Ya Chrttenden H£￿ey- charte￿ Accountants ChesteT Road Old Trafford Manchester M16 9HD BANKERS HSBC Bank plc 24 St knn'5 S¢Juat Manchester M2 7HD INVESTMENT MANAGERS Central Finan￿ Board of the MettrKNJk%t Churth 9 8t)nhill Street London EC2A4PE REGISTERED CHARITY 1143819 THE METHODIST CHURCH-THE ULFORDCIRcIKr TRusfEES' ANNVAL REPOI FOR THE YEAR ENDED 31 AUGUST 21Y21 The Tiustee3 present IheirAnnual Re￿ toget￿vAth Ihe finarKaal st*ernents ofttE thanty for the year end8d 31 Au9U5t 2021. REPORTING FRAMEWORK The financial statèments compty vAth the Charrbes Acl 2011 and 'AttoLtnting and Reporting ty Charities. Statefnent of Recommended Practs￿. applie2Ne to tharites preparing thesr accounts in a¢ciJrdan¢e wth the Financ4al reporbng Standard applicable In the UK and Repu￿￿ ol Ird8TKI IFRS1021 leffecbve l January 20191, refefT&I to 8S the Chan'ties SORP IFRS 1021 (second e(fition- October 20191. 08JECTIVES AND ACTIVITIES Charltsble Oblectfives The Cir(>Jrt shares the same charl￿e objecthves as the rest of mell￿ Churth. are set (xrt as follo￿". 'The purposes ofthe Methodist Churth are and shall be d￿ed to have been date of Union the advancement of- lal the Christian farth in a0￿rdance1￿th Ihe drKArinal 51andards and the discipline of Ihe MettK)dist Church." Ibl any tharitable purpose the time ￿lThJ d arty C￿￿Onal. Dists¥"cL Cirort l¢xal or other organisab.on of the Methodist Churth; Icl any ¢hartsNe ptarpose lof the b.rne beirvJ irfany ￿)ety or insbttrfion subsmliary or 8fKill*y to U)e Melhcxsist Church.. Idl any purpose for the time being of any charty tEing a c*ority subsidiary ry 8nrAMary to the Meshothst ￿￿rth.° Alms Thè Circuit seek5 tts INe out the (211ing ofthe Methodist Churth. is swnrllartsed thus". 'The r311ing of the Methortist Church is to resFX)nd to Ihe Gospel of G¢)Y's k)ve in C￿Estar￿j to Itve c*rt rts thsciyeship aThJ mi&sion. Inspred by Our CallirKJ, aim.. to increase awareness OfG￿l'S presen￿ andlo ￿etrate G(Kfs love lo ljelp peopl8 to gFUW ènd leèm ès Q)ris&ans Ihrrtyi mutual suppcvt we lo be a g(x)d newhbour to pecple in nee¢Y andto djallenge injusfr to make more followets of Jestss Cth7sr Activities and Publi¢ 8engfrt The Circuit en￿￿rage$ and supports the ChurdEs wthin tt in the pr(Msion of wular wblic acts of Kirship open to rnembers of the Church and non-members alike. the provision of sacred space lor ptayer and 1x)ntem￿a￿.trn", Ihe teathing of Christianity through sermons. o)urses and small groups." pastoral V*Yyk. indtKling wsitsng the sidi aThY tEreaved.' the promotion of Christranty rough tre staging ol events and Se[w￿,. the K¥owision of ywih dtsbs. senior ¢ibzens' dubs. Thell's ffleeb.ngs and women's Tlleetsngs etc W￿th a Chn5Oan ethos" promoting the whole missm of the Church larf aiding %)cial cotrE&onl through activiies for older people. pa￿ntS and toddlers and other speafic needs groups", and sup￿[￿ng otrer tt)anb"es in the UK aThJ overseas financialty and wth prayer. Contribution of Volunteers The CIr￿rt is heavily depeThJent UFOI. and extremety grateftjl for. the lx)ntiitxJli￿ of vdunteers as it seeks to cary out objecb"ves. With the excepb.on of the sb"Fendhiry Ministws. all mernbws of the Cir(¥it Leadership Team and all other Charity trustees are unpad volunteers_ ACHIEVEMENT AND PERFORMANCE The Cir(yJit (t)ntin￿￿ to (*k)p rts aw strategy was adopt￿1 by Ihe CirDJrt Meetng in 2016. This year, the work of the Circuit its churches was carried out completely within the contexi of the COVID-19 pandemic and In l(thdown ￿nditionS for the majority ol the tirne. Our strategy of assisb"rKJ each l(Dl Church to ￿ a beacon of k)ve and care in rts o)mmunty - through worship. pastt>ral Ca￿. ena￿Ing disapleship arKI offersng sem￿, has therefcrfe teen deliver&Y in a very different cthtext. Online worship has been offered Ihroughoul the year. The seM(xs have t*en led by tyJr rniThsters and Ictal preacher5 and these have been much appreuated, espeoalty by those have been isdating or unable to attend our thurche5, even when they have been able io oFen for public wryship. For Ihose iannot a(XESS Ihem (h4line. DVDS or hard copy setVlTr Fnateriais nave been di5tribuled. Churd)es have opened gradually fu public worship. 1(x4(doN￿ restn"cb"ons have allowed, and acLording lo the tapacity of in(thvEdual congregaions io do so 58fdy. Whilst ￿rship has been signtficantty diffwent (for instance. wthout singing THE METHOOISTCHURCH-THE 8ALF(%RD CIRcuir TRusfEES' ANNUAL REPORT FOR THE YEAR ENDED 31 AUGU8T21>21 and wth s(t4alEy distan￿ seabrvJl- peotAe have valued abk to meet together for worship aftèr such a prok)nged period ol enforced i8￿8￿0n. Our work in the area5 of rostoral r2re and enabling di5CitAeship has dso been dtfferenL Following the online services there has been 8 weekly 'coffee and cthav availa￿e A weekty onlire tryer meeting has also tsken plaTr thr￿ghout the year. Sorne churches have est8￿1shed VVhatsApp groups or othei novel means to stay in louth and maintain pastoral cale AJI thurches have imp￿rnented systerns ol phone tslls and visits o¥ (knrstep otsts Iwhen guidelines and [wi￿a￿"On pèrmrttedl to ensure people were both cared for 8nd had opportunibes tr) discuss and explore theirfath. The CiTiyJifs work Df offering setvice has been of uili(a irnFK)rtaN£ dLwing the last year. The Fotsdbank assoc4ated wth our Boundary Road church h8s continued to serve the o)mmunity throughout and in(xeased rts woth. 'Salford Food PaiTrls' also Moved inb our Erntnanud Church as Its operab"On￿ base. Churctes provide a base for childcare and activ¥be5 Wrth children and young people have done so whenever pemitted to. indudiry GlaTrbrc¢)k, The Height atxl Efflrnanud. The CircAJrt Leadership Tearn ICLT) has met online IhrowJhout the year aThJ Cc￿1n(￿ to plan and develop our minisiry and rnission. In th& coursè of the year the CLT was aUgr[￿rted by f￿r addib.onal lay memtEr5. Its work has induded planning how lay rtsles and paid wsts Gqn u)rnplement tr￿se of ordaired de¥gy. The work of our Communic2bons Off￿er has continued to be invaluatrile whilst our thurches have been dosed. Regular newsletters have been distiibuted and we have increased our online and social media presen￿. In July 2021 appointed a new Lay Past(¥al Assistant to work %Mth OUT lrfam. Cadishead and Glazebrook churches and a Church and Community Devewnent WO￿￿. based at our Boundary Road church. Both postholders h8ve msde good init￿1 pioJR5s ￿ understandiro our ktal Caxnrnun￿.es an(1 [n￿tsng Iheir needs. Our new lay apKKJinbnents %sEre part of ¢xJr preForatKJftS for a change in Ministerial oversKJht At the end of July 2021 Rev Claie Stainsby and Rev K5m Ratcliffe left the CiroJL for a aprK)inbnent and for rets"rement re5pecb¥dy. A itiint farewell service was held at The Height- the f rst signifi<3nt gathering of the Cirojrt. fdlowng Ihe rel8x8b.on ol all locl(down re5tricbons Prepar*"ons were made for the arrivd of Rev John Palmer as the c1￿1¥S new Superintendent Minister. wth effert from 1 St September 2021. The sale of Manthester Road L*urth was wtnpleted reventje from ihe sJe teleased into Cirojil fvnds. Patricroft helo their dDsing ￿lei￿atiOn on 25ty OctotrRr 2020 arKI Ihe buil(hng was put on tre market. The CLT has ￿￿en developing plans to fvirther Use the rdease ol these assets to enaiAe arxl enharKe mifitsty and missiC￿ in 202112022 and beyond. FINANCIAL REVIEW During the year under review. ￿trictIonS ielating to the conbnuing CovkY19 pandemic meant that Churches remained closed for worship land their piemi8es closed for other Lt5esl lor Ihe maiority of the penod. As had been planned w'or to the pandernic, Patricroft MethiKlist Church '￿aSed to worship. in Ihe autumn of 2020. and mafty of rts meTnbers have transferred to Churches elsewhere in the CircuiL Athough offertTry irwme gereralty hekl up wdl across the Circurfc as members were er￿Ouraged to use direct debits andlor intemet ban￿ng. s(xne k)ss of income was inewtalje. arKJ those Churd*s *thich rety on room bwkings to support their activities suffered signthc2nUy. HO￿Ever. and wilh one exception. all the Churches met th￿r assessmefjt commiknents for the first three quarters of Ihe year. Given thai gcyjj interest was beth'n9 shown by w>tential buyers of the former Church at Man(*ester Road, the CircurfÉ tocl( decisi(￿ to W￿ve the louth quartei assessment payment and thereby assist the individual ChuFches. Thi5 decision, ¢oupled with the dosure of Palfyrt meant th* assessment irKx)rne fdl by nea¥1y 40% from the prevH)us year and the d05ure of the formèr Manchester Road ChuTth burtdings resuhed In a 35% drop in ￿nts1 intxime. This fall ol around £65,000 in cash Incorne was more than offset by the ret r￿1p1 of over £154.(KKJ from the sale of Manthestei Road generating a realised gain of £37,864. Managing trusteeshp of Patricrc>ft passed to the Cjrcurt aThJ agents have been ir6tnJcted to sdl the property", the asset is included in the accounts at its anliapated net sale value ol f212.IMX). Experyjltu￿ rose by r￿￿ty durin9 the year. of the inctease of £28.359. manse exwditure 8(xxxJnted lor 8iound 60% as the opporknjnity was taken in August to effect a pr(xJrarntne of ielurtx"shment and improvements at the Sunflower Meadow property before the arrival of the new Suwnlen¢Jent Minister, Rev John Pather. In antiripaton of the Ted￿￿.0￿ in presbyteral staff, p8rt-b.mè lay app￿nts￿ents were made in the summer lo prowde supp¥yt to Rev Palmer arKI Ihese athled around £4.OOQ to staffing costs. Risk managom•nt The Circurt meeb.ng continues to devek)p prO￿dureS fw Mlenbfying and adthe5sifMJ the risks facing the tharity. It has already enhanced its financi81 procedures arKI, in common with othef Churches. has developed robust pri)cedure5 for safeguarding chiklren. Y￿ng reople. and vulnerable adun& Prlnclpal Fundlng Sources Contribubons from Ihe Churches by way of Circurt Assessrnent conb'nLE to tE the main Sour￿ of tundTrng. accountirp) for 87% 12020". 88%) of normal unrestr¢ted In¢¢m¢. R¢ntal in¢ome (tr￿ the fomier manse at Old River Closel acLounted for 11)%12020.. gQkl of nom)al unrestricted Ino)rne. THE METHODIST CHURCH-THE &4LFORD CIRCLIIT TRUSTEES. ANNUAL REP FOR THE YEAR ENDED 31 AVGusf 2tr21 Investment Pdicy and Review Money held in the Circuit Model Trust Fund leffeclivety the balar￿e of previous saes of ptopertyl is kept as Lzsh," the cli¢￿it is alert to the potential to achieve enhan￿ irKome ty invesb.ro part of this Fun¢J In esthei equrty-based or fixed Inte￿St funds operated by the Methodist Ctt)tral Finance Board. txrt the Imperab"ve to retain gc*)d leveSs o15iquidity ID recent years (not least In respect of the extended support of tre Emrnanud pr(¥ertl justitth a ffi￿e caubou5 approach. The s5tuatio￿ 15 kept under ￿9￿Lar review, but the likelihood of switching out of cash is considered sufficienty remote that the Mryjd Twst FufKI balance continues to be dassified as a ojrrent las opposed to loroer-temil asw. Reserves The Circuit seeks to use all it5 assets for its dTrarttable purpose5, ¥thilst c￿tinU¥n9 to secure and m￿l￿aIn the Circuit'5 finanoal viabilty. It seths to sel a balaniEd revenue budget. in ordet that the (Kwoiry r￿[n* costs of tnini5ty. tnission and management ao tnet frotn investrnent irtcoffle. grants arKI donations. and Circurt A5ses5rnent An i)ngoing progr8rntne of ratiofialisation of t Cireurfs property portfolio was linked with the developmerrt of a rnedium teun plan. whith conts.nues to seek to identrfy fuiure requirernellts of rnanagernent and ministy afKI to use part of sale SUKwb'ng ihose requiFernents and developing ore innovative sthetnes of fflission aryd rnintslry. In order lo meet its orvJoiftg finanoal obligabons - induding the payment of sb"tknds and of Disth"ct and Cwnexional assessments quarterty in advance - and to meet unforeseen orojmslances. the Cirujrt needs to maintain suffioent free reserves. These reseNes would enable the Cir¢xrfÉ to maintsin rts rn1￿0n and ministy In the short temi if. for thatever Eason. any individu21 Churches encountef difficulties in payin9 their assessments. Free ieserves are defir￿d as unresthded ￿SerVeS less the investment in tsngible fixed assets. Having prewously fleterrnin8d th* free reservès should be equivalent to between 3 and 4 tnonths of normal revenue operabng cc6ts. the imp* of Ihe pandem￿ or¢ Churth finan￿S has prompted the deasion lo hold an atnoullt equivalent to 6 month5 of rK)rrnal costs. equaty.ng to bets￿en £80.￿ and £g0.(XJO. In response to an appeal from the ethodist Church for donations to its Pensh?n ReseNe Fund. the Cirojit has eaM1a￿ed up to £50,0(￿ to be applied to the Fund by the end of2021. th the sale cf Manchestef Road. and the transfeT of PatrKxoft irEto the Cir(xJtY5 rnanaging tFUStee5htp. the Circurfs free ￿SerVeS rose to stand at a tracton under £432,￿0 at 31 August 2021.- a surplus of around £2￿.0(m). ReG￿nISir￿ that 3cKne Churches may struggle lo pay thwr assessmeits in full in the immediate futu￿. this level ol free reserves bwll continue to be under actNe review and vatEotB rniswort-based inNJatNes *ill be (y￿9¢Jered. Current Needs and Fu￿￿ Plans Ithin the context of the calling of the hletWisl Churth las set out above). Citrxrt pla)s lo". tinue to SUPWrt and encourage eathI￿21 c￿gregatt.0n in misgon and rninistry.. establish and develop a training Cultu￿ withiT> CiroJrt. encouraging lay P￿d)erS in their devdopment. supporting protyatoners and faciliiab.ng the developmerrt of presbyters in training. tJ)nb"nue to reNiew and activety Tnanage the CiTCUtYs investsnwts in iLs fin8rv81 and WDperty resout¢es. seekino to selectiveEy release r￿oUrceS for misyon, ministy and wireath.. work througf> the Methodist Church st*"oning Fwoc&JU￿S to seojre the apwntment of new ministerial siaff as ¥acar￿1es are identified", continue to work e¢urnenically. espeoally in $￿pE￿"n9 and developing estaJlisf*d and new Local E￿menIe Partnerships and wlh particular fr￿$ on V)e Anglican-MeilKMJist Covenart¢ develop both at Circurft arxy lotal levd rnedium te￿ plar6 ts strategr devewnent Going Concom The Tiustees have r8viewed the arcumstanrx of the Circuit and considw that a(lequate resou￿$ ts)ntinue to be availabk to fund its actiwlies for the foreseeable r￿ure. The Twstees are theref￿ ol the view Ihat the chanty is a going (x)ncem. STRUCTURE. GOVERNANGE AND IMNAGEMENT Salfortt Circurt i8 part of Methtyjtst Churth of Great Brrtatn. The managirKJ trustees 0[￿rate w1￿1n tre Metro¢ist Church Connexion and as such. their govemsng dwurnent is the Constitubonal Practi￿ aThl Discipline ICPDI cil the Methcydist Churol. The d(ument is aval￿ble for inspection by appointment at 15 Sunftower Mèadow. lrfam. Manchestèr M44 6TD Salford Circuit is registered as a separate chty. nUMf￿ 1 T43819. Connected charities The Churches fo￿1ng the Cirujrt we ￿MSelveS (t￿.&5 ag Ilw are reswrLSit)le ft)r their Ip•m fina￿￿ alfrairs. they are not reported it7 these statemenls. THE METHODIST CHUftCH-TrE SALFORD CIRCU TRUSTEES. ANNUAL REPORT FOR THE YEAR ENOED 31 AUGUST ZV21 Appointment of Trustoès Al rnini5ter5, presbyteral ano diaconJ. statirywl in the CiroJf( try the COnfem￿ or deerned to be resident in the Cirojit are members of the Circuti MeetsThJ. The follc>wing are ex Offi1￿ membets ofthe Ciruit Meetiru.. Circuit Stewards a¥wnted by the CircJJit MeetiTrJ Circuit Meeting Secretary appointed by the Circuit Meeting Repregerrtatives to Distrid Syn(M1 appointed by the Circyjit Meebng Local Preachers Seo¥etary apkxynted by the Lth21 Pre3thefs' meeb.ng Each Churt* is represented ty a Church Stewd, Ihe Church Treasurei arKI representatives aptKJinted by the Church Counal in rèlation to the number of Church memters lone representth for evety SO rnernbet51. The Circuit Meeting has the pob*i to co- opt other rnembers as nec8ssary. k at 31 Au9USt 2￿21 there We￿ $3 memt*rs ofthe Circuit Meebng. Trustge r8cruitm8n( induction and training As outlined a￿ve. the aprK)inbnent of the majorty of the members ol the Circuit Meets'ng is OLrtwde the c￿trol of the Meeting. In appointing the Circuit Leadership Team and other offi￿rS. the Meeting has regard to the balan￿ o15kills and grfts are needed to further the work of the Churth. New members of (he Leadership Team are IndLKled by the Leadership Team. Organisation The Circuit Meets"TrJ is wn¥eneil three b.mes a year. The Cwjit LeaderslNp Team, apFN)inted by the Circjjit Meeb'ng, is responsitAe for acting on behalf of the Circufi Meebng * other bme5. The Leadership Tèam meets at least six times per year The Circuit Meeting retains ￿ponsIbIlity lor setbrvJ the missim pnoribes of the CIr￿lt, tre overJl strategy to ddivei those pnonb"es. tho invrtation of ministers. the oversight of IcThl thurthes. the admissitsn of peO￿e to trE Offi￿ of L￿al Preacher, and decisions on fotmal explorations of calls to tninisty and ¢3ndidates for thè otdained ministry. The Leadership Team is aSsk8￿ in the task ol finanoal oversight by the Circ¥it Treasurer. The Methodist Churth #ppoints 8 minister to tk the Swintendent MinL£terofthe c1￿)J¢ vkn)se duties are set out in the Standing Orders ofthe Churth Pay and Remuneration Stipends and allowan￿ for wesbytets ar￿ deaox)ns min151er5} ale 8¢1 an[MJa1￿ by Ihe Meth(Klist Conferen￿, arKI the CIFCUIt is iesponsible foi Meeting those (x)sts for al ministers app(x¥tt￿I by the Confeiencè to the Ciiajl Fu51è1 disdosurè Is contained in Note 21 to the ac￿unts. TRUSTEES, RESPoNSI￿uT1Es IN RELATION TO THE FINANCIAL STATEMENTS The law ap￿1¢a￿e to charities in EryJlaThJ aThJ Wales r￿1￿$ the Cifoit Meetir¥J lo prepare finatK4al statements for eath financial year which give a true and fairview olthe state of Chaiity aThJ of the yJrF4us or deficit of Ihe Charity for Ihat pencxs. In preparing those financial statements. the Circurt Meeting has". selected 9AJitabk a(th￿lting and aw)lied (x)n5i5tenUy madeiudgements an¢J esb"mates knat are reasonab￿ and L)fLFdeni stated whether applicatye accounting standards have been followed. subject to arry material deparkues disdosed and explained In the fin8nual ststements prepared finanoal Stat￿n￿ c¥) ctr*em ba51S The Circuit Meeting is respDnsible for kee￿ng records whith disd05e wth reasonable accurary at any time the finanual p)sition of the chanty and to enable them to ensure that tt* finatKJal statefflents (yjrnply with applicatle regulatK)ns. 11 is a150 responsib* for safeguardiryJ the assets of the charity and takirrfJ steps for the wevention a)d detecticffi offraud and other irwularities. ON BEHALF OF CIRCUIT MEErtNG RÉV JOHN PALMER- TRUSTEE lNDEPEN0ETr￿ EXAMINERS. REP( FOR THE YEAR ENI)ED 31 AUGUST 2tr21 I report to the charty trustees on my examination of the acoxjnts of ts charity for the year ended August 31 21Y21 which are sel out on pages 8 to 19 Responsibiliti8s and Imsis of rèport As the thattty's Iruslees y(KJ are re¥M)nsilJe the preparab"(m of the auxmttts in 8rx￿dan￿ vAth the requiTernents of the Charities Act 2011 Ilhe A￿1. I reFK)rt in resped of rny examinabon of the th*ity's accwnts carri&J c*Jt Ltnder 145 01 the Act and in cairying out my examination I followed all tr* applicable tirec*ons by the Charty co￿ls￿C￿ under section 149Sllbl of the Act Independ&nt axamlnafs statomont Your attention is draw￿ to the fact that the chanty has ￿ep￿e￿ finar￿481 stalements in accA)[daF￿ with Accounbng an(t Reporbng by Chanties prepanng their accounts in accor(Jarre wth trte Financ481 Repotbng Standatd applE(XtAe In Ihe UK IFRS 1021 in tirefefence to the Accounting and Rel￿rting by Charitses". Slatemerrt of Recommended Pracb"ce issued on 1 April 2tX)5 whith is referre(5 to in the extant regulatiorts but has rx)w le￿ wrtmfawn. l understsnd that this has been done in order fof finan(aal statements lo prowde a tnje and fair wew in axI)rdan￿ General A￿PIed Accounts"rvJ pTaCti￿ effeL*ve for repc¥tsng periods Winning M or after 1 January 2015. sin￿ the charity's gros5 in¢X￿e exceeded £250,(KAI ywr examiner rnu5t be a member of a Lwyjy listed in section 145 of the Act. I confirm that l am qualified to ￿dertake the examiTh*"(fft ￿￿Se l a member ol the ICAEW whKth is one ofthe listed LY)dies. I have completed my examination. l uknfirtn that no tnatstial maitets l*ve come to my altenb￿ in Cx)n￿bOn ¥￿th the ex8rnin8b.on giving me cause to believe that in any material ￿pett acD)unting records ￿re not kept in respert ol ts chanty as required by wjion 1￿> ol the A&". ( the accounts do not a£wrd those records.. or the aC￿nts do not comply wth the appliGatAe requ1￿M￿ conceming the fom and content of accwnts set oui in the Charities (Account5 and Repjrtsl Regulatson5 2O)8 other than any reqU1￿ment that the accounts give a 'true and faif Me which is not a tnatter consvjered as part of an Ir￿ependent ex￿inati<￿. I have no concAms and have cnme au0&£ no othèr matters in (￿nne(￿On with the exarninabon to atteth.on shwlo be drawn in thi5 report in order to enable 8 prO￿r Understa￿lIrS of Ihe ac(x)unts to be rethd. P8ter Smith BA FCA DChA For ar¥J on behalf ot. HGA Ac£ountants & Finanaal Consultants Ltd Ua Chlttenden Horley- Ghartererl A¢￿Alrtt¥nts 456 Chester Road (Md Trafford Manchester M16 9HD THE MEfHODisf CHURCH-THE 8ALFORD CIRCU STATEMEIIT OF FINANCIAL AcTrvmES FOR THE YEAR ENOED 81 AUGUST 2021 Notes Unrestricted Restrictsd Endo*Thent Total Funds Funds 2021 Total 2020 Incomin9 resources from genèrdtgd fund5: Donations 96,564 154.699 Rental income 10.230 10,230 15.8 Investment income- bank interest 253 253 56T other inu)mè (funds transferred inl 212.(KX) 212.OlXI 1.428 TOTAL INCOME 317,412 1.635 319.047 112,494 EXPENDITURE Costs of gèneraiing )imds 979 979 9T9 Expenditure on tharitable a(knbes 176.612 178,247 149.888 TOTAL EXpEND￿uRE 1TT,591 179.226 1￿.86/ NET INCOMEIIEXPENOITUREI BEFORE TRANSFERS 139,W21 139,821 21.627 OTHER RECOGNISED GAINS & ILOSSESI Realised gain on sale of astset Gainslllosse51 on ￿valuatIc￿ of urrent investment assets 37.864 37.864 13 (63.4W) NET MOVEMENT IN FUNDS 14 177,685 1TI,685 (41.713J TOTAL FUNDS BR￿IGHT FORWARD 14 2.949 682 900,294 g42.067 TOTAL FUNDS CARRIED FORWARD 14 1.074.368 2,949 1.OTT.979 9W.294 The notes on pages 11 to 19 form part ofthese finarThl ststements. THE IJIETHOOISTCHURCH-THE SALF01￿ CIRCUIT AS AT34 AUGusf2tr21 2021 2021 2020 2020 FIXED ASSFTS Tangible fixed assets Invesknents 10 642.415 692 648.605 11 662 643,107 049.26T DEBTORS due in more than o year 12 CURRENT ASSETS Debtors 12 19,086 211(KKI 235,482 22,6T2 116, 153,571 292.843 Investments 13 Cash at Bank and in Hand CREDITORS Amounts talling due in one year 14 31.696 41,816 NET CURRENT ASSETS I IUA81UTIES) 434A72 251,027 NET ASSETS 1.077.979 900,294 FUNDS Unrestri¢Xed 15 1.074.368 896.683 2.949 662 Restricted 15 2,949 Endowment 15 662 TOTAL FUNDS 1.077,979 gm.294 The notes CY) pages 11 to 19 fomi part ofthese fin￿tial statemenis. Approved by the C1￿u[l Ileeting and aulhori¥ed for ￿u? on.. 10 ts2L And signed on their behalf by". REVJOHN PALMER- TRUSTEE THE MEfHODisfcHURGH-THE 8ALFCARD CIRcinT srATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGusf 2021 2020 Cash used in operating activtties 34,912) 31. 100 Cashfto*g from inve51in9 activities Interest and dividends 2S3 567 Proce￿$ of sale of investtnents 116.600 Redassificab"on as Currerrt Assèts Purchase of investments Cash provided byllusod inl investiry activiti8S 116.823 567 Cashfiows from financing activitle5 Repayment ol borrowng Cash used in flnancing activities Increas&lld8erth3sel In cash & cash èquivalents in the year 81,911 31.667 Cash cash equTrvalents broughtlorwrnrd 153.5T1 121,904 Cash and cash equlvalents carried fonvard 235,482 153.571 Cash and cash equivalents consist of: Cash at bank arml in haThY 235.48Z 153,571 235.482 753.571 The notes on pages 11 to 19 fiKm part of Ihese firtr8noal ststements. 10 ThE m￿H001sfcHuRcH-THE S4LFORD GIRcuir 1 ACCOUNTING POUCIES The following acoMnts"ng pdi(ies have been apF4ied consistenty in deding items. vhNL* are C4Jnsthr￿1 malwial in ￿lat￿n to the charity's financia statements. Scope ofthe financial ststements The finan(#al statements relate solety to Salford Methodist cir￿ Basis of preparation The a￿unt5 (finall￿al statementsl have t)een prepared In wtth the Ststement of Recommended Practice. A(xounting and Reporting by Charrties preparing treif accoun15 In ￿nce wtu) the FinarrAal Reporb'w Standard applicxble ￿tt the UK and Republic of Ireland IFRS 1021 issued on 16 July 2014 and the Finanoal RepJtr"ng Slan¢Yard apFAicable in the United ￿ngdorn and Republic ol Ireland IFRS 1021 and the Chants"es 2011 and UK GenerJly A￿ep￿ PraG[l￿ as it ap￿leS trom 1 January 2015. The accounts lfinanaal staternentsl have been prepared to give a ttrue and fairf uiew arTd have departed from the Charities (Accounts and Reportsl Regulabons 2(MJ8 only to the extent required to provide a ￿e and fair VW. This departure has invdveol following Accounting and Reporting by chanb.es prepariro their ￿nts In ac(r)rdarK2 with the Finanual Reporting Standard applieablè in the UK and Republt tsf Irdand IFRS 1021 Issued on 16 Jufy 2014 rather than the Accounting and Reporting by Charitses". Statement of R￿rnmended Practice effecltve frthm 1 &)ri12QXJ5 has Sin￿ been wthdravm. The tharity constthtes a pL*Jlic beneft ￿tity as defined by FRS11f2. Income Total Incoming Résrx5rcM as in the Statement ol Fina￿tal Pthbes reprewsts the ￿arnOUrts all sour￿. Income is recryjnised in the accwnts.ng peiioj 4n whrch rt is feceivthe. except in the fdlwng I)r￿lMs¥an￿￿. when the income Is deferred and indwjed in cre(fftoKs. Tre income rdates tr) a futsEre axx)untifKJ A sales invoice h85 been raiwl ahead of the vA)rk bw.ng carri￿1 oul 11)è d)8rity is not cx)ntrac*ually entitled to the Income unts"l y￿k has been dcN)e Not all the twms a￿1 thndtbons of thè grant have t£en mèL ir￿Udir￿d the incurring of expeThJiture 8rKI the grant condtbons are such that UnSp￿t grant rnust be refurKled. Income indudes grants in resw* of reven￿ and Pt frotn corrmts.on Tax by reason of its tharitable status. lrtc¥ne tax suffered on deeds of covenant and gift aid or investrneni ir￿rne is redaitned ftAI. Flxed assets and depreciation The Circuit has capitalised the freehcAd and bro leasehcAd prwbes for whth rt as the Man2girvJ TNstees at the Tru51ees' valuation 2009 or at subsequent purthase WI'￿ Depreciation has been provided s5nce ihe year ending 31 August 2015 on the long le8seholO prtperties at IhE late of 1% Df the Tru5tees' valuab.on pw annum. arKI at the late of 0.67% pei annum on th¢ freehold propety. Single assets purthases. not formiru part of a r￿at￿ serv)us of transactions. cc6bThJ less than £3￿ are not capitalised. but are I￿￿tten off as a re￿nue expense in the year ol aCqLtis￿"O￿. DèweLyation, on assets other than the lorvJ lea5ehrJd proFErty. Is provided to vrritÈ off the cx)st less the estimated residual value oi tangible assets by eq(￿1 instalment5 over their estimated usefvl ecx)rKXniC lives as ￿101￿.. Property Irnprovements FumElure and fitb'ngs 10% per amum on cA)st 25% pef amum on o)st Investments. galns and losses Fixed asset investments are a fom of basic firra￿l31 instrument aNI arè inibalty reu)Tded at their transaction value and subsequenuy measured at their fair value as at the balarre sheet date ￿￿n9 the dosir4J quotèj market pn￿. The SOFA indudes the net gains and Ios5e5 arisI￿g on revaluabon and on disw)sals thro￿￿h(Xrt the year. C81ns 8nd losses on are taken to the Ststement of Finawl A(*vtbes as they arise. RÈalised gains and losses are ca1￿lated as e difftrren￿ between sale proceeds (net of transaction costs) an¢J trle opening carying value 01 WSL if acquired during the year. Unrealised gains and Ic6ses gre calculated on ts differe{K￿ beimeen opening and dosing fair values. Hnanclal Instruments The charity has only b2si¢ finanr#81 instruments are in￿alty recorded at LY)sL aThJ the ey(*pts"on of investsnenls las set out above) subsequen¥y measured at th￿r settlement Value. Methodi$t Minister5. Pension Fund The Circuit Is a tnetnber of the COnne￿Onal pension s(**me IMMPSI covers presbyters and deacorts ol the Methodist Church. The contribution rates are set each year by the Meth(Klist Confe[e￿. and for the year under rewew the ernployer cTh)tributiorts were 28.￿ of stiFend1202Tr. 26.9%). The MMPS is a multi0M￿oYer s(kne. and in ￿¢0rdar￿e the guidarKe issued by Charty Commission. the Circuit accounts for those contlibubons as rf it we a ￿fine0 o)ntritrxÈtion It has done so bec2use it is unable to identty its share of the undertying 2ssets a￿1 liatx"lits"es on a ctnststent and reasonat4e ba&s. ContribJlKTh are charg￿j to the SOFA in the ￿no[l in which they are payable. Judgements and key sources of estlmatiot) ytKertalnty The preparats.on of the finanual statements requires management to make 1u¢Ygem￿ts. es)'mates and asstjmptions that affect the amoLEnts reported. These estimates and iudgements are ujntinually revithYe(l and are based on expenence arKa otrer facto>rs, indu(Jing expectations of future events that are believed to Le reasonatAe urKJet the arrJjMstan￿. 12 THE METHODISTCHURCH-ThE &4LfORD CIRCUIT 2021 2020 TL*I Urbrestri¢ted Restrlcted Totsl 2 DONATIONS Church assessments 93.611 1.318 93,611 152,132 1.595 15Z132 2.567 tknnatK)ryS 972 Other fvnds transferred in 94.929 1,635 96,564 153. 727 972 154,699 3 OTHER TRADING INCOME Rental income 102 10.230 10.230 15.8 75.8 1581X) 15,81KI 10230 4 INVESTMENT INCOME 178 178 424 424 Bank Interest 75 75 143 143 253 567 5fj7 5 FUNDS TPANSFERRED114 From dDSUte of Wot51ey R(wJ From rjosure ofP8tr￿ft 1.428 1,428 212 212,(rf)O 212,( 212.(XM) 1.428 1.428 6 COSTS OF GENERATING FUNDS 979 979 979 979 979 979 979 979 7 CHARITABLÉ ÈXPENDrruRE Direct costs Stipe[￿￿. salaries & e>pense5 87.208 81.4 81,480 Grants 10 QrrAJit Churf**s 95 Grants lo olW b(*J Y,305 18.473 1.305 18.473 Manse costs lirKILk1ing tskyeaati￿}) strid & Conrthior￿1 assessments $92 31V22 1.21S 32.695 1,238 32,695 1,238 stri(X AdvarKE Fund levy BeneVo￿nt fu￿ payments 1.215 2( Offi(*. (x)mrr¥utN(xknoris & ottErc05ts 6.779 107 6,775 107 5.705 99 295 Intere51 and 99 Accountarw & ￿gaI f4ag 9.889 176.612 9.889 178,247 8,303 149.393 8.303 t49,888 1.635 495 Grants to other bodles are anatysed as: anchesler & SlctKport Distn"ct, Meth(xJist Church 7.305 13 THE MEfHODISTCHURCH-THE SALFORD CIRCUtr 8 NET INCOMING RESOURCES AFTER TrANSFERS This is stated after cknrglryllcred￿n9)". Accountanulndependent examiners fees Rewrt Accountar Depreci*"on Trustees, remLtnerth"on as trustees Trustees, expenses as trustees 2021 2020 815 746 6.1 6, 790 9 STAFF INFORMATION 2021 2020 o Staff costs Stipends and salaries Pension o)ntributions- Methodist Ministets Scherne 65.693 13,732 5.166 84,597 59.211 13, 128 4.852 77. 797 Ernployerfs Nl contributions No staff metnberwas paid more Ihan £FA),(XM) p.a. in ether year. b Key wAnagom•nt petsofi￿1 The key management ol the chatrty cornprise the trustees %%hich ind￿je$ the (￿Ined memters ol staff are ex Off￿￿MemberS ol Ihe Circurt M*b"ng but do [￿1 re￿1ve any paYTh￿t S￿3￿CallY for *'ng as trusteès. The other trustees do not receive any remunerth.on fortheir seTrices. The total iernuneration teneffts of the key marHgemenl Stipends TT, 791 e Average ¥taff numbers The averdge number of mern￿ of staff was as fdhM."- 2021 Av•rag• number 2020 Average number Ordained staff (Offi￿ hobjers not em￿1}Yees) Lay employ￿5 14 THE METHODisfcHURCH-THE SALFORD CIRCUIT NOTES TOTHE FINANCIAL STATEAIENTS FulTHEyE￿ ENDED 34 AUGiIST2021 10 TANGIBLE FIXED ASSETS Long Ffethold laThJ lèasthoid & buildings Piopprtsps Totsl Cost AS at September 12020 Transfer to current assets 2￿,[ 485,745 685.745 As at August 312021 2(X).(x)o 485.745 685,745 Depreclatlon As at September 12020 Charge for the year 29.142 4.857 37,140 6.190 1,333 As at August 312021 9.331 33,999 43.330 Net book value As at August 312021 1￿.669 451,746 642.415 As at August 31 2020 192,￿2 456.6C)3 648.605 11 FIXED ASSET INVESTMENTS 2020 Market value brought forward Income r&invested 662 662 30 Market valuè carried forward 692 662 Investments at fair value comprise." Cash hdd investrnent F<)rifolto 692 662 692 662 un￿tricted fund5 Restricted funds Endowment fvnils 2020 a) 2020 2021 2020 Matkel value brought fo￿13￿d Income r&invested 662 30 Market value carried forvrdrd 692 662 15 THE MEfHODISTCHURCH-THE &4LFORDCIRCU 2021 2020 12 DEBTORS Income reTrivab 50 Prepayrnents & rither debtors 19.036 19,086 22,328 22,6/2 zozo 13 CURRENT ASSET INvESTM￿s Freehold property transferr￿1 from fixed assets Property transferred from other Managing Trustees un￿alISed Ilossl on revaluatic Property held for resale 180,C¥YO 212,000 I63.4(￿) 116,500 211000 2021 2020 14 CREDITORS lalllng due wllhln one >*ar Assessments in advan 25.514 34,071 467 Funds in try￿t ottrw creditors Creditws & 8WV815 1,182 31,696 2,278 41,876 Assessments brought fwrd ￿tre ￿leaSed tn the year. The amwnls tdatir4J to subsequent accounting perirxls are deferred in line the aca>unbng wliry. F￿nrts in trust are monies fA)1lÈ(tsl by Ciittjrt Chuf(**s Melh(xJist funds and nol remitted al the year end. They 8re an8ly5ed 8s ftAIows". World Tolal Wovld Totsl ission 2021 Mission 2020 Brought lorward Re￿1ve￿ in the year Paid over 134 467 92 291 383 1.319 2.623 2.539 467 {528 1.183 1.711 1,271 134 7.262 Carried forward 333 16 THE MEfHODisf CHURCH-THE SALFORD aRCUtr 12 STATEMENT OF FUNDS 17 THE MEfHooisf CHiMICH-THE SALF(MU) CIRCUIT NOTES TOTHE FINANCIAL STATEMEKfs F(MITHEYEAR ENDED 31 AiisusraY21 16 ANALYSIS OF NET ASSETS BETWEEN FUNDS Fund balances at AUg￿t 312021 ayè represen￿ by:_ Unre5trtcted Restricted Endowm•nt Funds Funds Funds Total Tangible fixed assets Fixed asset investsllents Net current assets 642,415 642,415 692 662 431.923 2.949 434.872 Debtors falling (Jue In more than cffje year 1.074.368 2.949 662 1,077.979 Fund balances at August 312020 are representsd by.. Tangible fixed assets Fixed asset investrnent5 662 662 Net current assets 248.078 2.949 251,027 Debtors falling due in more than one year 2.949 662 900,294 17 FINANCIAL INSTRUMENTS The carrying amounts for eath (xtegory 0f￿na￿la1 instrurnw is as follow8.. 2020 Flnanclal assets trat are investments rneasuted at f•"r value 892 6&2 lttat are debt instruments measured at amorbwt ￿$t 2S4,$68 116.243 Financial liabblities measured at amotbsed cost 131,6961 (41.816) Financial assets ffloasured at aM￿Sed cost cornprise." cash at bank and in hand.. In￿Me r￿1vable and other debtors". and prepayments. Finarcial liabilities rneasuied at amtills￿ comprise. trade creditor5", other taxes and sorial se¢urity,' a￿TUal5, and deferred incoTne. 18 TAXATION The Cirojit is a wistered chanty 8rMI ts erthued to daim anThJal exemtlicm frcKn UK rx¥rX￿￿.0n lax 19 CAPITAL COMMITMEKrs There were no capital cornmrtrnerrt5 authorised aThJ c£rtatsY for at ts erhj ofthe ye*121r20 £Nill. 20 RECON¢ILIAfioN OF NET IAOVEMENT IN FUNDS TO NET CASHFLOW FROAI OPERATING ACTIVITIES 2021 2020 Net inccxnellexpenditurel tEfvre tTansters Add back depreciation on fixed assets Deduci transfer in of rKJn cash asset Iprcpertyl Dedud interest income in invesb.ng adj 1TY,685 21,627 6. 790 6.190 1212,0001 {2531 (567) D¢¢r￿se/{lnCreaseI in debtors 8.069 lnueaselldec￿3sel in creditors Net cash generated fromllu5ed inl operating activlties 10,1201 {34,9121 4.3191 31. 100 18 THE MEfHOOIST CHURCH-THE &4LFORD CIRCLirr 21 RELATED PARTY TRANSACTIONS stipenijs allosyances we5byter5 arNI deacons Icollectiveby kn￿*M as rRinister51 a￿ set out annL)ally by the ethodist Conferen￿, arKI the Circjjii is re5wn&t￿e rneetir¥J those ￿sts for all Ministers app(xtrted ann￿llY by the conferen￿ to seF¥e the CircAJ The fdlowng Ministers r￿1Ved l)ax sbtEnd £25.524 1201¥20 - £24.8521 ￿re Plolrided wth li*7ng 8ccommodat￿ll in 202QY21." Rev C Stainsby and Rev K Ratdiffe Tre Rev C stas.nsby le￿[ved the Contrwwlty agreed addsb.onal Strpwinlen(*nts' allovorKZ of£2.55212019120- £2,485). The Circurt presented the ministers wth a kw'ng gfft of £825 e￿h. thieffly ftJrKled by don8ti(h4 fTorn the ¢*urches totalling £1,65J. During the year the Cirujtt Paid Mr Eaton. a twstee. £95 Ixuglar ajarni Tepairs arKI seNang at one ofts manses 19