## **NORTH LANCASHIRE METHODIST CIRCUIT 21/16** Registered Charity Number 1155398 **TRUSTEES’ ANNUAL REPORT &** ## **FINANCIAL STATEMENTS** FOR THE YEAR ENDED 31[ST] AUGUST 2021 ## Circuit Officers # (As at 31[st] August 2021) ## Circuit Ministers Rev Steve Charman (Superintendent) Rev Keith W. Borwick Rev Roy Burley Rev Emma Holroyd Rev Derek Oldham Rev David Philo Circuit Stewards Ruth Champley Shirley Cormack Jane Entwistle (Senior Steward) Peter Gorst David Midwinter Howard Rogerson Sandra Cooper (Finance) Circuit Administrator Joanne Towers Cornerstone Chaplain Simon Stewart ## North Lancashire Methodist Circuit ## Type of Governing document Deed of Union (1932) and Methodist Church Act (1976) ## How the charity is constituted Act of Parliament ## Trustees’ selection methods - Appointed by local churches and existing trustees. - Ministers are automatically trustees. ## Induction/Training - Range of guidance produced by Methodist Connexion. - • Leaflet ‘The Role of a Trustee in the Methodist Church’ available to all trustees ## Structure - Part of the Lancashire D istrict - Accountable to the Methodist Conference ## Risks - Considered by the Circuit Leadership Team - Take professional advice as required. - Regular review process. - Adopted Safeguarding Policy and ensured it is rolled out to the churches. ## North Lancashire Methodist Circuit Circuit Meeting The Circuit Meeting meets four times a year and its constitution is set out in CPD (SO510) In 2020/21 it had 68 members (Trustees) registered with the Charity Commission. **----- Start of picture text -----**
Circuit Executive
This is the Circuit Leadership Team. It deals with matters delegated to it by
the Circuit Meeting, offers guidance to the circuit and constantly reviews the
personnel, property, and financial resources of the circuit.
Pay policy for Ministers
Stipends and allowances for Presbyters and Deacons (collectively Ministers) are
set annually by Methodist Conference, and the circuit is responsible for meeting
those costs for all Ministers stationed by the Conference in the Circuit.
Risk Management
The Trustees have carried out ongoing assessments of the charity’s activities
setting out the major opportunities available to the charity and the risks to
which it is exposed. These risks are identified by the Circuit Leadership Team
and are risked assessed.
The principal risks and uncertainties faced by the charity are as follows:
• The cost of ongoing maintenance and refurbishment of circuit
property.
• The reduction in the number of Ministers available throughout the
Methodist Connexion.
• The risk of a church defaulting on its assessment.
The Trustees have considered their responsibility under legislation including
health and safety, employment law and safeguarding. Systems and procedures
are implemented to manage specific risks that have been identified.
Volunteers
The North Lancashire Methodist Circuit is supported by a team of active
volunteers. The charity is grateful to all volunteers for their skills and support
they so willingly bring to the charity.
**----- End of picture text -----**
## North Lancashire Methodist Circuit The purposes of the Methodist Church are and shall be deemed to have been since the Date of Union the advancement of: a) The Christian faith in accordance with the doctrinal standards and discipline of The Methodist Church. b) Any charitable purpose for the time being of any Connexional, District, Circuit. local or another organisation of The Methodist Church. c) Any charitable purpose for the time being of any society or institution subsidiary or ancillary to The Methodist Church. d) Any purpose for the time being of any charity being a charity subsidiary or ancillary to The Methodist Church. When reviewing the aims and objectives of the charity, and in planning future activities, the Trustees have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Commission. ## Mission Statement: We are the Methodist people of God in North Lancashire responding to God’s loving challenge as we promise to. - Energise discipleship - - Enable leadership - - Encourage risk - - Employ buildings - - Embrace technology - - Enrich communities - - Engage all - ## North Lancashire Methodist Circuit The Circuit’s Priorities for the five years to August 2024 These priorities are based on the assumption that we have sound financial management and administration. They also take account of the earlier work done during reconfiguration on structure and communication as well as the Possible Futures document to look at what we have achieved, and which ideas are still worth pursuing. - The CLT will set up the review into the vitality of each church. - Use our ministers to equip the church to develop discipleship and to encourage the growth of faith, leadership, and commitment across the circuit. It is only by making disciples that the churches grow rather than decline. - Look at models of ministry and pastoral care required across our diverse circuit to see how we can meet the needs in our churches and the communities we serve of children and families, older people and those living in rural areas. - Developing the role and function of IT possibilities and potential - there is a lot of travelling attached to our circuit - could we work 'smarter’, and we need more effective communication across the circuit. - Continue to develop the circuit mission focuses of rural ministry and projects at The Cornerstone. The Circuit produces a quarterly preaching plan to ensure regular acts of worship take place at each of the Methodist Churches in its geographical area. These are open to all people, without charge. The Circuit is directly involved with the provision of a chaplaincy service at the Cornerstone (in the centre of Lancaster) and at Lancaster University. ## North Lancashire Methodist Circuit ## Staffing Rev. Derek Oldham, who joined the circuit last year, requested a reduction in hours but following a heart attack and with ongoing health issues, applied for early retirement on the grounds of ill health. This was approved by the Circuit and the District and Derek was given a retirement date of 18th January 2021. Inevitably, this resulted in some changes of Ministerial oversight across the Circuit and instigated discussions on how the Circuit would run going forward, knowing that in August 2021 Rev. David Philo was also due to retire. As a result of the on-going COVID-19 pandemic, we held a delayed joint farewell service for both these Ministers, which then took place in September 2021. Over the summer months of the year, we also went through the re-invitation process for both Rev. Roy Burley and Rev. Emma Holroyd. From the consultations, both with the Churches and the Ministers we are pleased to record that both were invited to stay on for another three years and both accepted. The recruitment of a new Circuit Administrator was a priority at the start of the year, and we were pleased to appoint Jo Towers to this role. She is a member of one of the churches in the circuit and took up the position at the start of October. Sandra Cooper, who is the Circuit Treasurer, has taken on full responsibility for the Circuit Finances which had previously been a shared role. ## Ongoing impact of COVID-19 Lockdown came and went, and came again. The difficulties of running anything, (Circuit, Church, Work and home) were all met with substantial challenges. Some churches reopened, having completed the necessary risk assessments. Some continued with worship on Zoom and some used both. Due to their own health issues, initially, not everyone was willing to meet up again in person - this also applied to the Preachers and Ministers which also created significant challenges to provide worship in all the chapels that wished to remain open. The discussions regarding the experience of COVID-19 restrictions, have led us to realise that continuation of streaming services is important and has also led into talks of how we may need to invest in technology for all Churches. The use of Zoom may become vital to the Circuit, as we have seen a reduction in Local ## North Lancashire Methodist Circuit Preachers - the facility to be in your own church whilst sharing in a service from somewhere else in the Circuit, may be a way forward. The Ministers continued to work in the best way possible, to provide pastoral care and support to members and families of their congregations. This was done in person whenever possible but mostly via Email, Telephone calls and Zoom calls. Weekly services and reflections were sent out from all the Ministerial staff, so there was always access to something. Paper copies were also available to send or pass on to those who needed it. Financially, the effects of COVID-19 continue to impact the circuit. The Wesley Cafe in Garstang Chapel had to close and due to various circumstances amongst the members, the Chapel itself is in the process of reviewing its change of use, to accommodate the community, alongside providing an occasional place of worship. Those Churches which normally received an income from letting out their premises, found meeting the Circuit Assessments difficult; but we've been able to draw down from the Circuit reserves to keep us on an even keel. ## Methodist Conference Report ‘God in Love Unites Us’ With the vote at conference agreeing the proposals within the report ‘God in Love Unites Us’, as had already been hinted at, the majority of the congregation from Brookhouse Chapel resigned their membership of the Methodist Church. We are proposing to carry out a Feasibility study to explore the future use of the building within our circuit, as we look at the ongoing possibility of Clustering churches and working together. Significant time and work has been spent over the past year, in regard to the church buildings in which Wray and Quernmore worshipped. Alongside a newly formed Trustee group, the work involved all the Circuit Staff and extra meetings of the Circuit Trustees. Application was made to the District to cease worship at both these premises, which was granted. With the assistance of Surveyors and Solicitors, many discussions have revolved around these buildings and the best way forward for the Circuit to deal with things. The proposal, as this financial year ends, is that we will sell both the buildings and use the proceeds for Mission and Ministry in the wider Circuit. ## North Lancashire Methodist Circuit Future Planning Though we acknowledge the many changes in the Circuit over the past twelve months, we continue to look at ways in which we can move forward and work together. Discussions have been held and continue to be held, with the idea of clustering churches together. We are proposing to look at ‘The Methodist Way of Life’ within our churches. An away day is being arranged for the Circuit Staff and Stewards to review and discuss LyCiG, (Leading your Church into Growth), for which some members attended a two-day course and want to share their learning with us. At the Circuit Meeting in February, the Trustees reviewed the Mission Statement for the Circuit and we continue to hold this true as we move forward into another year. The Circuit Model Trust Fund had a balance at the year-end of £151,788 This fund derives from sales of churches and manses and is restricted by the Conference. This restriction is an internal regulation though the fund can be used for a variety of purposes. The Circuit Leadership team has drawn up a set of ground rules, which have been accepted by the Circuit Meeting, to ensure grants made from the Circuit Model Trust Fund are used effectively for mission and capital works. The Reserves Policy The Reserves Policy for the North Lancashire Circuit is to hold a sum equivalent to 6 months’ average expenditure. This should be sufficient to meet any unforeseen item of major expenditure on manses and / or to be able to continue, in the short term, funding planned activities in the event of an inability to raise the full Circuit Assessment from churches. It is necessary to hold sufficient working capital to enable the payment of stipends and business expenses for all ministers and a part time Administrator and also our contribution to the Lancashire District. North Lancashire Methodist Circurt Circuit No 21116 Statement of Financial Activities (SOFA) for the year ended 31 August 2021 Note5 to Clrtult Model Deslgnatsd ¢*neral Fvnd Tn￿t Funds acGounts Iunwtrlctodl IUnro5trictBdl lunr¥¥trf¢iwll Ro¥tricted EnrfowrnBnt Funds FuTrds Totsl 2020-21 Incorne 1 Donation5 and kgaues 2 Income from monetary investtnEnts 3 Income from investment propprtEs 4 Assessments on Churt*p5 S Capital Receipts 6 Grants received 7 Other charIta￿t intorne 8 Total income 1,051 28 10.834 286.018 1,051 437 10,834 266.018 410 2.571 407.047 707.549 2.S71 407,047 707,958 410 Expenditure 9 Gr8nl$ and donat￿n5 10 Salanes and assDrAated costs 11 Property mainienan 12 Connexional assessrnenl & mr*Jd Injsl *vy 13 DI51￿cl Assessment & Levy 14 Depreciation 15 Office expenses 16 Other oulgoings 17 Total charftsblo 8xpondttu 18 Gainslllossesl on monei2ry investments 19 Gain51llos5esl on investment properfEs 20 148t IncomellexpBndiiiiv•I 21 Tran$fets between funds 22 Other 931nslfjossesl 23 Met movernent In funds 24 Total funds brought forward 25 Total funds for￿rd 14.000 227.503 23.946 f4,932 227,S03 23,946 2,484 72.272 2,484 72.272 2.066 9.S30 352.734 9.530 349.317 932 358.232 .2.075 1.500 -932 355.225 369,732 1.665.051 2.D24.783 4.575 155.363 151.788 32 932 355.225 1.821.346 2.176.571 North Lancashire Methodist Circuit Circuit No 21116 statement of Financial Actlvities (SOFA) for the year ended 31 August 2020 Notes to Clrcuit Model Designaied General Fund Tntst Fvnds 8C¢OUIIts IUnrn8tYlctedl IUnrestrict8dl lunrestri¢todl Re5trictsd End(Iwmont Funds Funds Total 2019.20 Incomg 1 Donaiion5 and kg8¢￿$ 2 Incorne from monetary investments 3 Income frotn investment prDpertES 4 Assessments pn Churches 5 Capital Receipts 6 Grants received 7 Other charitable incorne 8 Total income Expenditure 9 Granls and donat￿n5 10 Salaries an(J associated costs 11 Property mainlen8nce 12 Connexional a55e55rnenl & m(xlel 13 Disirict A55essmenl & Levy 14 Depreciation 15 Office expenses 16 Other outgOIryS 17 Total Charitable exponditure 18 Gainslllo55esl on monÈtary investmeils 19 Gainslllossesl on inveslrneni propertE5 20 Net inCom￿{expenditu1sTr 21 Tr8nsfÈrs between funds 22 Other gainslllossesl 23 Not movemont in funds 24 Total lunds brought forward 25 Totsl fund5 carrled forward 500 1.501 441 339.394 339.394 3.592 244 349.615 3.592 244 350,675 10.IM)O 262.788 6.195 1.250 11.250 262,788 6,195 2,565 67.860 67.860 2,984 10.336 360.163 2,984 10,336 363,978 3.815 -10.548 -2.755 -13,303 -9,048 1.674.099 1.665.051 4.255 159.618 155.363 -13.303 1.834.649 1,821,346 932 922 North Lancashtre Melh(xtisl CKuut ¢lrcult No 21116 Balance Sheet as at 31 August 2021 Funo IVNtStrithdl ¢i￿￿tE Model TNsts Endown)èni Fund Tota 2020121 Tot41¥ 2019120 Fund$ IUTrr•stsictqdl Fu Netst￿the Fixed Ass•ts cl1￿1 KtsnSe5 & EqLdpm* lnveslment prtyerbes lllvesiments 1,9)7.216 1,gU7.216 T¢thlfixoL¢&ssets 1.9DT.216 CurrontA•i•ts 12.891 16.7 Loan5 bythE Cyoht Investments TrACP Central Finante Baard Oeposts Cash at Bank an& In hand >).375 35,375 123,488 35.432 35.460 11D.935 TlO.g 161.255 15f.7 316.073 Credilors (a￿e m undEr l swr) 4%ithin 202&21 Totalcuffreni 1kbili1￿5 46.71 46.718 65.8B2 46.716 117.567 46,71 9.355 8S.682 151.71B I￿24.783 f51.7Ba 2.Ir6,571 1.821.34 (due afler morE thpn one Grart15 pay&￿e after 202Tr21 Net•35ets 2.024.783 151.TB8 2,176,571 1.B21,346 Fund$ ollhv Clrcu41 G¢net41 Fund lun￿S￿ed) Crturt Motl81 Twsi Fund IUrY8¥rh%eoi DE￿gnal￿d (Unrestr￿9￿} rotaiUnr4stsYctsdFund Restykied F￿￿5 Efj¢hyrf￿￿t Fund$ 2.(Q4.783 2.024 783 1.665.051 151.780 2,176.571 1.820,414 932 TolalFvnds 1024.783 151,788 2.176.571 1,821, North Lancashire MethcKlist Circuit Circuit No 21116 Notes to the Accounts 1 Basls of accounting The financi815tatemenls have been prepared under the Charities Act 2011 in ac£ordarre ￿th the 2014 version of Accounting and Reporting by Charities.. Statement of Recommended Practice ISORPI applicable lo charities preparing their accounts in a(urdance wtth FRS102- the Charities SORP IFRS102) and taking note of the Update Bulletin 1 issued in 2016. 2 Funds The funds held constrtuie." Ge￿ra1 Funds held for any purpose of the Circuit which are Unrestricted. The Circuit Model Trust Fund has WFde purposes defined in Standing Orders and is categorise¢J as unrestricted. Restricted funds which are held for a narrower purpose . There ale no Endowfflent funds. Details of each material fund 8re disclosed in the final note to these arujunts. Any funds may be represented by more than jusl cash. 3 Accounting policies Basis These accounts have been prepared on the basis of historical o)st except thal investments are shown at their market value at the end of the year. on the accwuals basis to shthv a true and faiT view of cl￿11,$ financial position and Incoming Resources Income is indude(J in the Statement of Finanaal Activities (SOFA} when the Csrcuit becomes entitled to the resources. and the trustees are reasonably certain they will receive the resources," and the monet8ry value can be MeaSu￿d with sufficrent reliabilty- Resources Expended This is recognised when a liabilty is incurred. or a constTuctive obligation arises. Ihat results in the payment being unavoidable. Liabilities are recognised as soon as an oufflow of economic benefit is considered more likely than not under the legal or constructive obligatKJn commAtiny the CircJJit to pay out resourrEs. Grants Grants made by the Circurt from ts own funds a￿ recognised in lull at Ihe time ol agreement or when the Circuit 3￿pts that there is a legal of operalional obligation to make the payment. VAT Since the Circuit is rtot VAT registeied, all tnput VAT is charged wth Ihe expenses to vknich it refers. Tangible fixed assets for use by the Circuit Tangible fixed assets are capitalised rfthey can be used ft)r more than one year. and (xjst al least £500. The freehold propety is shown in the accounts at 2015 deemed values. No depreciation is provided on the building because the trustees consider the current residual fair value of the manse buil¢Jings lon the assumption that it had reached the end of its usefvl economic lrfe by the year*nd} to be not less than rts c(rrrenl value. Any depreciation would not be material. The pioperty has been reviewed for impairment.. Investment Properties InveSt￿ent properties- no propety is currently deemed to not be held for the long term purposes of the charrty. Investments Investments are valued in the balance sheet at rna￿et value al the year end. Investment income is included in the accounts when receivable and any gains or10sses on fevaluation at the year end 8re shown in the SOFA. Debtors and Prepayments Debtors include rental income. Prepayments are September stipends paid in August. Creditors c￿ditorS include both sundry expenses and specrficalty the 1st quarter assessment re￿IVed in August. North Lancashire Methodist Circuit Circuit No 21116 4 Payment to Trustees The￿ were no payments made lo Irustees for addib.onal seryices provided to the Circuit by agreement with the Clrcuit Meeting, this excludes slipends. Trustee expenses 2020121 2019120 Number of Trustees Total amount £0 £0 Expense payments tffimarily ￿late to reimbursement for travel and ￿Mpu11ng costs 5 Fees for examination or audit of the accounts 2020121 2019120 Independent examinerfs or audrtors. fees for reporting on the accounts Other fees leg". advice. accountancy services) paid to the independent examiner or auditor 1,104 NIL NIL 6 Paid employees Staff Costs paid during the year were: Gross wages, salaries and benefits in kind Employer'5 National InsuTance costs Pension costs Total staff costs 2020121 2019120 152.fJ)4 169.585 12,992 36,425 201,421 14,121 40,111 223,817 Average number of fu114ime equivalenl employees in the year were: 7 Capital Commitments and Contingent Liabilities Al the 31 sl August 2021 the￿ a￿ no capital commrlments. No Contingent liabilities We￿ identified at 31 sl August 2021. 8 For information only Money received and passed on to Exlernal Or 2020121 anisations 2019120 Balance brought forward from last year 30 30 OffeTrngslGifts - recetved for Extemal Organisalions 2,343 4,467 OfferingsIGifts - passed lo Extemal Organisations Balanee carried foThbrard 2,343 4,647 30 30 North Lancashire Methodist Circurt Circuit No 21116 9 Tangible Flxed Assets Cost or valuation Flxtures. rrttings and equipment Payments on account and assets under construction Other buildings Land Manses Totsl Balance brou hl ft)rward 1.512,216 1,512,216 Additions 395.000 395 000 Revaluations Dis osals Transfers . Balance carried forward 1,512.216 395,000 1,907216 Accumulated depreciation Balance brou hl forward Depreciation charge for ear Revaluations Dis osals Transfers" Balance carried f0Th￿rd Net book value Brou ht forward 1.512.216 1,512,216 Carried forward 1.512,216 395,000 1.907,216 10 Investment assets The circuit has nu Investment properties The circuit has no common investment fund holdings 11 Loans The Circuit currently has no loans North Lancashire Methc(list Circuit Circuit No 21116 12 Analysis of restrFCted and designated funds 2020-21 Restricted Fund Name Opening Balance Incoming Resources Resources Expended Transfers Closing Balance Purpose of the fund Benevolent Fund Support for individuals in ecific need Development Fund Available for funding outreach and development work Circuit resource centre Fund designated for the maintenance of the cenlre. Totals "'Comparative analysis of restricted and designated funds 2019-20 Restricted Fund Name Opening Balance Incoming Resources Resources l Transfers Expended Closin9 Balance Purpose of the fund Benevolent Fund Support for individuals in ecific need Development Fund Available for funding outreach and development work Circuit resource Fund Fund designated for the maintenance of the centre. Tots15 North Lancashire Methodist Circuit Circuit No 21116 Declarations and Scrutiny I confirm that these accruals-based accounts for the year to 31 August 2021 have been prepared from the records of the Circuit and that they include all funds under the conlrol of the Circuit Meeting. Signature of treasurer . Date.¢.g_.11..11.......... Name and address of treasurer-fM£... HS?.￿j.,....s￿I￿JNY...&Wt￿￿,..A￿￿ti.l&>11S.......... Post Code.L/Ab..Jfy£.... Presentation to the Circuit Meeting I confirm that the annual report and accounts for the year ended 31 August 2021 WOr￿4F will be,. presented to the Circuit Meeting at its meeting on Zq111 K)r3￿￿1 zotl Signature of the Chair of the meeting Name of the Chair of the meeting sfEPrfeKJ CHAPM Date Independent Examiner's Report to the Trustees of the Circuit, named above The Circuit's trustees are responsible for ensuring that the annual report and accounts for the year to 31 August 2021 present a true and fair view of the Circuit's income and expenditure for the year and of its assets and liabilities at the balance sheet date. The truslees consider that an audit is not necessary for this year under section 144 of the Charities Act 2011 and that an independent examination is needed. It is my responsibility to: examine the accounts under section 145 of the Charities Act 2011 follow the procedures laid down in the general directions given by the Charity Commission under section 145{5)(bl of the Charities Act 2011 state whether particular matters have come to my attention. delete or circle as appropriate North Lancashire Methodist Circurt Circuit No 21116 Basis of Independent Examiner's Report My examination was carried out in accordance with the general directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts with those records. It also includes consideration of any unusual items, in nature or scale, or disclosures in the accounts, seeking explanations from the trustees concerning such matters. The procedures undertaken do not provide all the evidence that would be required in an audrt and, consequently, no opinion is given as to whether the accounts present a true and fair view. My report is limited to those matters set out in the statement below. Independent Examinerfs Statement In connection with my examination, no matter has come to my attention (other than as disclosed below") (1) which gives me reasonable cause to believe that in any matefial respect the requirements to keep accounting records in accordance with section 130 of the Charities Act 2011 to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act 2011 have not been met, or (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. (3) I havelhave not" obtained independent verification of all investments with the Trustees for Methodist Church Purposes or held in other trusts, bank balances and funds at the Central Finance Board of the Methodist Church which are individually in excess of £10,000 (ten thousand pounds) at the balance sheet date. Signature of independent examiner..............-....... Name of independent examiner Relevant professional qualification of independent examiner FCC&: Name of firm (where appropriate) Address Scott & Wilkinsp.o.LLP. "" Chartered Accountants Datton House ..A.Ddton S Lancaster uaFe-. Post Code Date .J6.lii12021 delete or circle as appropriate North Lancashire Methodist Circuit Declaration This annual Report was presented to the Trustees at the Circuit Meeting on: 9[th] March 2022 Signed on behalf of the charity’s trustees Rev Stephen J Charman Mrs Joanne Towers Chair of Trustees Secretary of Circuit Meeting Date: 17[th] May 2022