## **NORTH LANCASHIRE METHODIST CIRCUIT 21/16** Registered Charity Number 1155398 **TRUSTEES’ ANNUAL REPORT &** ## **FINANCIAL STATEMENTS** FOR THE YEAR ENDED 31[ST] AUGUST 2022 ## North Lancashire Methodist Circuit ## Circuit Officers (As of 31[st] August 2022) ## Circuit Ministers Rev Steve Charman (Superintendent) Rev Keith W. Borwick Rev Roy Burley Rev Emma Holroyd ## Circuit Stewards Ruth Champley (Senior Steward) Shirley Cormack Peter Gorst Hazel Preece 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 **----- Start of picture text -----**
Risks
**----- End of picture text -----**
- 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 2021/22 it had 59 members (Trustees) registered with the Charity Commission. ## 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. ## 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 ## - Priorities for North Lancashire Circuit 2021 2026 1. We will live out our Mission Statement ‘Transforming Lives and Communities’ – The Circuit will prioritise resources (staff, finance, buildings) for work which is missional - reaching out to our communities in service and evangelism. 2. The Circuit will re-visit ‘The Main Thing’ process (original Spring 2015) which explored the vitality of each church and see what progress has been made over recent years and how further progress can be encouraged and/or initiated. 3. The CLT will explore models of ministry and oversight with an expectation that we will reduce from six to four ordained staff during the near future. We will help churches work together and develop the skills of lay people in leadership so that there is reduced reliance upon our ordained staff for tasks which can be done by lay people. We will support the churches as they adapt to a changed pattern of ministerial oversight. 4. Develop a Circuit mission focus with primary schools, in particular seeking to expand the use of the ‘Open the Book’ programme (from Bible Society). 5. We will continue to develop our work with those in the Third Age of life, through mission, service and spirituality. These priorities assume that we have sound financial management and administration. These priorities are to be reviewed and, where necessary, revised annually. 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 ## Annual Report We are delighted that by the end of the year, all our churches are back worshipping together and re-starting their various programmes post-Covid. Some have been able to continue offering an online option alongside worship in their building. Alongside the ongoing mission and ministry of the Circuit, the overwhelming focus of the year has been on buildings. The sales of Quernmore and Wray Methodist Churches have not yet been completed - a number of difficulties have arisen during the process which have resulted in delays. This has occupied a significant amount of time and energy from the staff and officers of the Circuit as well as significant amounts of time in Trustee meetings. We hope the sales will be completed during the next year. We are exploring the possibility of refurbishing Garstang Methodist Church as a pre-school nursery and community hub. The proposal is to convert the former cafe area into the nursery and to remove the pews and organ, to level the floor in chapel, as well as install new toilets in the chapel side of the building. We are hoping to utilise funds raised from the sale of Wray Chapel (designating it as a replacement project). The Lune Valley Feasibility Group have continued to explore the future potential of the Lune Valley Methodist Hub (although the Roeburndale and Arkholme congregations have largely withdrawn from this process). The use of the building has increased - we are particularly delighted that the building is able to offer a welcome and support to Ukrainian refugees living in the locality and their host families. The membership at Emmetts Methodist Church dropped to 4 people and so the Circuit asked the District for permission to cease worship and proceed to advertise for sale, this was granted. We are investigating some issues surrounding the Deeds and the ownership of the property. The membership of the Tewitfield Chapel dropped below 12 and the remaining members decided to close - the Circuit asked the District for permission to cease worship and proceed to advertise for sale, this was granted. The sale process will proceed in the next year. Following the adoption of the ‘God in Love Unites Us’ report at Methodist Conference, churches have been asked to vote on whether or not to allow same-sex marriages in their premises. Some churches in our circuit have voted in favour, some have voted against and some have postponed the decision for the time being. The creation of the Circuit Preaching Plan is an increasingly difficult task - we have less preachers available (due to age, illness and some having moved away from the area), but most churches still seek a preacher for each Sunday. The churches are being encouraged to find alternative ways of providing worship which does not clustering churches together for worship, utilising Zoom from one church building to ## North Lancashire Methodist Circuit another church building. In order to assist with this, we have trained a number of Worship Leaders from different churches across the Circuit. The Circuit Meeting (the Trustee body) now meets in a Hybrid form - both inperson and via Zoom - as it is in the best interests of the charity to do so, in order to include as many Trustees as possible. As in many of our local churches, one of the greatest challenges has been that we have struggled to recruit people to various roles and responsibilities - this seems to be a more significant issue post-lockdown. Towards the end of the year we heard the news that our Superintendent will be leaving for a different appointment in the Summer of 2023, consequently work began on finding a replacement for him as well as seeking a replacement for Rev Keith Borwick who is due to leave the Circuit at the same time. The Circuit Model Trust Fund had a balance at the year-end of £129,427 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 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 4 ministers, a Part Time Administrator and our contribution to the District. North Lancashire Methodist Circuit Circuit No 21116 Statement of Flnancial Acllvities (SOFA) for the year ended 31 August 2022 Notss lo Cl￿￿1¢ 11odd D911gnatod General Fund Trust Funds aGcaunts IUnrgstrlct8dl IUTrr88trlct•dl 1urbr9￿trIGtOdI Restrfctod Efidowmèht Funds Fvnd$ Total 202142 Income 1 tx¥natior6 and k9acies 2 Income from morelary invesiments 3 Income from Investtnent yopertles 4 Asse55rnents on Church8S S Capital Reoipt5 8 Grants recèived 7 Oiher Charitab￿ inGome Totsl income 8,247 38 9.364 774 47,813 rJ7,366 171 47.813 237.306 565 15,812 301.161 15.B12 311,118 1,6Y2 8.285 Expendlture 9 (&an15 and ¢Jonallcffis 10 Salar￿5 8nd as5o￿ated costs 11 Property maintenance 12 CoMexlon81 a6$8$srr*nt & model tru$t leyy 13 tislr¢l Assessm8nt & Levy 14 Depreryath?n 15 OffKe expense5 16 Other outgoing5 17 Totsi charltabl• •xpen4ltw• 16 Gahslllossesl on monelary Inve$lmenls 19 Gahslllossesl on investment propertie5 20 N•t In￿m81(0xp*fidhuro) 21 Transf￿$ beh¥e8n funds 22 Other gain￿(￿1$$t$I 23 Npt fflovBffl¢nt In fwndg 24 Total fund5 brought ft)r¥vord 25 Totsl Funds tarried hKward 1Z.200 188.242 65,723 173 12.373 138,242 85,723 £S57 62,272 2,5Y 23 62,272 1.972 8,907 329,315 1.972 8.907 332,046 2.534 197 -28.164 21.500 .D88 -20.927 21.500 4,654 2,024.783 2,01B.129 -22.301 151,788 129,427 6.088 .20.927 2.176,571 2,f55.fj44 8.088 North Lancashire Melhodisl Circuit Circuit No 2V16 ststement of Financial Activities (SOFA) for the year ended 31 August 2021 Notes to Clrcvlt Mod81 De81g*at•d th• Qeneral Fund Trusi Funds ¢ounts IUnr88trictsdl IUnrg¥trlctedl lunre8trl¢tsdl RgStrtctod Endowment Funds FurbO$ Total 202041 Income 1 Donallons and lega¢ks 2 Incoff* from rnonelary inveslrnen15 3 Ineoff* from investment properfies 4 Assessments on Cl¥Jrches 5 Caphtal fte￿Ipts 6 Grants received 7 olherchari1a￿e Incorne e Total SThcome 1,051 437 10,834 286.018 28 10.834 288.018 410 2.571 407.047 707.549 2,S71 407,047 707.95B 410 Expendltur• 9 Grants and donallons 10 Sal8lles arKJ as$ock8ied ¢ost5 11 Property malnienan 12 Conne￿Onal a$$e$$menl & Tnodel trusl 13 Dislilct Assessm￿1 & Le 14 Dep￿da110n 15 Ornce 8xpenses 16 Other OU￿OIng5 17 Total charftable exp•nthtur8 18 Gainslllo55esl w monelary Investments 19 Gainslllossesl M inveslmenl wvperties 20 Incomfrlloxpèndlturèl 21 Trnnsfers be￿een fLnds 22 Other g81nslllossesl 23 N•t M0￿meth fund$ 24 Total funds broughtforward 25 Total fvndscarrSed forward 14.000 227,503 23,946 932 14.932 227.503 23.946 2.484 72.272 2,484 72,272 2.086 9,530 352,734 S.530 349.317 2,4B4 932 358,232 1,600 .2.075 1,5Tr) -932 365,225 309,732 1,665,051 2,Q24.783 .575 155,363 151,788 -932 932 355,225 1,821,346 2.176.571 North Lancashire Melhodisl Circuit No 21116 Ba14ncq Shppt 1131 AugU¥t1022 Generil Fund lu￿r*St￿clOdl D￿*natsd Funds IUnrHtri¢t8dl Endowm•nt Fundi Totall 2021122 Totall Trust6 IUnrtttriet￿) Funds FIAvd A￿*¢# IruAI roaD$95& Eqdpm¥ InvesimeDI prop￿1￿5 Inve8imeni$ 1.W7,216 1,￿7.*16 .907.216 Toi*iix•d•ssots curr¢m￿le D8blar5 73.73Z 12.0 13.732 20.e75 12B,640 Loans byts C*cLII Inve5tmFtts YthhTMCP Centrnl BDsrd D8pos*E Caah al Bankandin hand .875 12D.552 35.37S 8.088 35.630 35.480 roL*i rwTrit•ss•ts 16J,079 129,427 3W.594 Currqnt IbabllStt8B Cr8thots (du8 In￿￿￿[ t ye¥) Gran15 paYa￿e￿I￿n 2021-22 52,166 52.166 46,715 52.188 52.186 241,425 45,718 269,JS5 Ilei¢un¢ntass•tsqiablJttJ8s 119.427 2,D1B.129 129.¥7 2,155.514 (due 4fter more ihanone Grant8 payAt4e after 2D2I-22 LoaTr5 toth$ cir￿ Netass•ts 2.011.12 2.tss, Funth of Iho Cltu Gongfal Funo iunresmedl ctre￿il Wdd Trusi FuThJ ￿M￿St￿￿t￿d) De$￿Trat* FU￿s(unr65t￿tt￿dI TotaAUrw￿l￿t8rfFW￿l$ R4$inthd Funds 2.0IB.12B 2,018,1 129.427 2.024,7 151,788 129.427 2.147.5 2.174511 End￿￿￿1 Fyn* TotslFunds ItrAZT 2.155,014 2.174571 North Lancashire Methodist Circuit Circuit No 21116 Notes to the Accounts 1 Basis of accounting The financial statements h8ve been prepared under the Charities Act 2011 in accordance with thè 2014 version ol Accounting and Reporting by Charities.. Slalement of Recommended Pracliee ISORPI applicable to charities prepmring thèir 8cctsunls in accordance with FRS102- the Charititrs SORP IFRS1021 and taking note ol the Update Bulletin 1 i$su¢d in 2016. 2 Funds The funds held constituta.. Genèral Fund3 held for any purpose of the Circuit which are Unreslrloled. The Cirujil Model Trust Fund has wide purposes defined in Standing O¥ders and is calegorised as unrestrided. Re$lri¢t¢d funds which are held lor a narrower purpose . There are rso Endowment funds. Details of each material lund are disclosed in Ihe final note to these a¢¢¢unts. Any funds may be represented by more than just cash. 3 Accounting policies Basis These accounts have been p￿pa￿d on the basis of hFstorthl cost except that investments •re Shtrwn 81 their m8rfKet value at the end of th8 year, on the arLrual$ basis to $how a trug and fair vlew of Me Circuit's ffinancial position and activities. Incoming Resources Income is included in the Statemenl of Flnancial A¢tniilies (SOFA) when the CiweAJiI become8 entitled lo the resources, and the trustees are reasonably certaln they wlll r8¢eive the resources; and the monetary value can be measured with suffiuent reliability. Resources Expended This is recognised when a liability is incurred, or a constructive obligation arises, that results in the payment being unavoidable. Liabilitie5 are recognised as soon as an outflow ol econom￿ benefft is considered rnore likely than not under the legal or constructive obligation wmrnittin9 th? CirGuil lo pay out re5ourGg8, Grants Grants made by the CircuFt from its own fijnds arè rÈeognised in full at thè lime tsf agreement or when Ihe Circuit accepts that there is a legal or opèrational obligatiov) to mak8 the payrnenl. VAT Since the Circuit is not VAT regisl8red, 811 input VAT is tharged wlh the expense3 to which il refer5. Tangible fixed assets for use by the Clrcult Tangible fixed assets are capitalised if they can be used lor mor8 than onè year, and cost at least £5(Kl. The freehold property 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 bulldings lon the assumption that il had reached the end of ils useful economic life by the year-endl lo be not le$$ Ihon its current value. Any depreciaticn would not be material. The property has been reviewed for impaimtrnt.. Investment Propertles Investment properties- no property Is wrr9nlly dgemed lo not be held for the long term purposes of the charity. Investments Investments are valued in tho balance sheet al market value at the year end. Investment income is included in the accounts when receivable and any sain5 or losses on revaluation al the year end are shown in th8 SOFA. Debtors and Prepayments Prepayments are September stipends pald in August. Credltors Creditors include both sundry expenses and sperificalty the 1st quartw assèssment rÈ¢eived in August. North Lancashire Methodist CirGUIt Circuit No 21116 4 Payment to Trustees Thore were no payments made lo trustees for additional services provided to the Circuit by agreement with the Circuit Meeting, this exclL5des stipends. Trustee expenses 2021122 2020121 Number of Trustees Total amount £0 £0 Expense payments primarily relate to reimbursemenl for travel and computing costs 5 Fees for examination or audit of the accounts 2021122 2020121 Independent examinerfs or auditors, fees for reporting on the accounts Other fees leg.. advice. accountancy services) paid to the independent examiner or auditor 1.142 1.104 NIL NIL 6 Paid employees Staff Costs paid during the year were: Gross wages. salaries and benefi'ts in kind Employer's National Insuranc8 Costs Pension costs Tolal staff costs 2021122 2020121 119.253 10.604 28.302 1S8.164 152.004 12,992 36.425 201,421 Average number of full-time equivalent employees in Ihe year were: 7 Capital Commitments and Contingent Liabilities Al the 31st August 2021 there are no capitsl commitments. No Contingent liabilities were identified at 31st August 2021. 8 For infomiation only Money received and passed on to External Or anisations 2021122 2020121 Balanc8 brought forward from last year 30 30 OfferingslGifts - received for External Organisalions 1.414 2,343 OfferingslGifts - passed to External Organisations 1,414 2,343 Balance carried forward 30 30 North Lancashire Methodist Circuit Circuit No 21116 9 Tangible Fixed Assets Cost or valuation Fixtures, fittings and equipment Payments on 3¢¢ount and assets under construction Othèr bulldlngs Land Manses Total Balance brou hl forward 1,512 216 395 000 1,907 216 Additions Revaluations Dis osals Transfers . Balance carried fo￿ard 1.512,216 395,000 1,907,216 Accumulated depreciatlon Balance brou ht foNard Depreciation charge for ear Revaluations Dis als Transfers. Balance carried forward Net book value Brou ht forward 1,512.216 395.000 1,907,216 Carried forward 1,512,216 395,000 1.907.216 10 Investment assels The Circuit has no Investment properties Ttte circuit has no common investment ftjnd holdings 11 Loans The Circuit currently has no loans North Lancashire Methodist Circuit Circuit No 21116 12 Analysis of restricted and designated funds 2021122 Restricted Fund Name Openlng Balance In¢oming Re$our¢o8 Re80urce8 Expended Transfers Closing Balance Purpose of tho fund Rev T C Brown Bequest 8,112 24 8,088 Local mission work in Morecambe & sham Circuit Donations for external anisalions Restricted Giving 173 173 Totals 8.285 197 8,088 North Lancashire Methodist Circuit Circuit No 21116 Declarations and Scrutiny I confirm that these accruals-based accounts for the year to 31 August 2022 have been prepared from the records of the Circuit and that they include all funds under the control of the Circuit Meeting. Signature of Ireasurer Date. 300&2S.... Name and address oftreasurerThE HPiJ.Tr).. ...¥. .QfANy......6A.Th).K........................ Post Code.L4b..i..BE Presentation to the Circuit Meeting I confirm that the annual report and accounts for the year ended 31 August 2022 were, or will be," presented to the Circuit Meeting at its meeting on 80 08 ..zs................................. Signature of the Chair of the meeting Name of the Chair of the meeting Independont Examlnerfs Report to the Trustses of the CSrcui( named above The Circuit's trustees are responsible for ensuring that the annual report and accounts for the year to 31 August 2022 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 trustees consider that an audit is not ne￿sSary 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 prO￿dureS laid down in the general directions gtven by the Charity Commission under section 145(5)(b) of the Charities Act 2011 state whether particular matters have come to my attention. delete or circle as appropriate North Lancashire Methodist Circuit Circuit No 21116 Basis of Independent Examinerfs 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 prO￿dureS undertaken do not provide all the evidence that would be required in an audit 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 Examlner's 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 material respect the requirements to keep accounling records in accordan￿ 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 verifscation 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 independenl examiner............. Name of independent examiner . Tim PIi&c Relevant professional qualification of independent examiner FLC SCOTT & WILKINSON DALT.Q.N.HO.U.SE g DALTON SQUARE LANCASTER LA1 1 WD Name of firyn (where appropriate} Address Post Code . delete or circle as appropriate ## North Lancashire Methodist Circuit Declaration This Annual Report agreed by the trustees at the Circuit Meeting on 30[th] March 2023. Signed on behalf of the charity’s trustees Signature Signature Rev Stephen J Charman Mrs Joanne Towers Chair (Superintendent Minister) Secretary of Circuit Meeting **----- Start of picture text -----**
Date 5th May 2023
**----- End of picture text -----**