## LIVERPOOL NORTH CENTRAL METHODIST CIRCUIT ## TRUSTEES’ ANNUAL REPORT AND ACCOUNTS YEAR ENDED 31 AUGUST 2020 Registered Charity No 1163418 c/o Oakfield Methodist Church Oakfield Road Liverpool L4 0UQ www.liverpoolnorthcentral.org.uk **Liverpool North Central Methodist Circuit (Number 18/03) Year Ended 31 August 2020** ## **1 OBJECTIVES AND ACTIVITIES** In setting our objectives and planning our activities, the Circuit Meeting which normally meets four times in each year, has given careful consideration to the Charity Commissioners’ general guidance on public benefit and, in particular, to its supplementary public benefit guidance on advancing our objectives and conforms to the Charities Act 2011. It is noted that the Circuit Meeting met for a total of three times during the year. The meeting originally scheduled for May 2020 was abandoned as per guidance received by the UK government and the Methodist Church due to the nationwide COVID-19 lockdown in place at the time. Our mission is to be a powerful spiritual influence in the Circuit and a visible expression of God’s inclusive love. We aim to achieve this by encouraging, through the Churches in our Circuit, the worship, social, and outreach activities that currently exist, and by seeking new ways to extend to others the fellowship of the Church family. The Circuit endeavours to lead and support its churches to live out their Christian faith through worship, prayer, practical service and mission initiatives which serve the needs of the communities of North Liverpool. The aims of the circuit reflect the priorities of The Methodist Church as documented in “Our Calling” with particular emphasis: - to enable the Church to be a good neighbour, supporting community development especially among the most deprived and poor. - to make more followers of Jesus Christ through developing confidence in the capacity to speak of God and faith in ways that make sense to all involved. - to find ways to support the improvement in the quality and variety of worship offered to God including fresh ways of being Church. The Circuit’s mission objective is founded on an original plan for four “Mission Centres of Excellence” at different locations with focuses on Volunteering (Learning and Caring), Worship and Faith development (Evangelism) and Children and Families (Service). This approach has now developed to form a focus on intergenerational working across the circuit through work with children and families and older and isolated people. We seek to achieve our objectives through collaborative working of ordained staff, lay employees and volunteers from church and community. The Circuit recognises the inter-connectedness of service, worship and evangelism and the varied related opportunities that exist for achievement and delivery of its aims. Page 2 of 30 **Liverpool North Central Methodist Circuit (Number 18/03) Year Ended 31 August 2020** ## **2 ACHIEVEMENTS AND PERFORMANCE** ## **2.1 Intergenerational working** Through its focus on children and families, volunteering, worship and faith development, the Circuit has developed the “Community Intergenerational Project” which commenced in September 2019. This project works in some of the most deprived areas of North Liverpool from the existing church bases at County (Kirkdale), Kensington and West Derby. The Children and Family Worker (CFW) and Community and Church Liaison Officer (CCLO) are two part time posts supporting the existing ministry team under the supervision of the Superintendent Minister. We seek to integrate local, established, traditional church culture with a fresh embrace of the needs of the surrounding local communities. The project involves a variety of activities for children and families and for lonely and isolated people in various deprived communities in North Liverpool. Activities are open to all, free at point of use and take place in the safety of our church premises. They are led by workers and volunteers with a passion for community service and outreach. Many activities work closely with other church, community and charitable groups either directly or through sharing of volunteers or provision of resources. From March 2020 activities were modified or suspended due to COVID-19 lockdowns. Community Intergenerational Project activities seek to: - provide positive play activities within a safe place - encourage healthy eating – feeding families in need - reduce the isolation of adults, especially older adults - help identify and reduce the likelihood of depression across the age ranges - provide a sense of purpose for all ages - energise older adults and help children to feel valued - provide an opportunity for old and young to learn new skills from each other - develop shared family activities at little or no cost - build community cohesion – a safe place for families to meet - offer a safe place to meet and talk to others - share celebration of Christian festivals with church and community families in a fun and relevant way - plant and nurture the seeds of faith Specific activities include the following, some of which were either suspended or modified during the year due to COVID-19 restrictions: - Continued support of the existing uniformed organisations in two of our churches: Boys’ Brigade and Girls’ Association (BB/GA) based at West Derby Methodist Church and Girls’ Brigade (GB) based at Kensington Methodist Church. - Continuation of Rise and Shine – an open access play scheme for children and families, offering play, crafts and healthy meals (some of which the families are involved in preparing). Funding for the running costs of this component is provided by The Liverpool Play Partnership. Since March 2020 and the start of the nationwide COVID19 lockdown, Rise and Shine continued in a modified format focusing upon providing athome educational materials and healthy eating provisions distributed to individual families. - Supporting ‘Stay and Play,’ the independent parent and toddler group based at County Hub offering pastoral support to parents and volunteers in addition to helping them raise funds and manage their finances. (This scheme ended in August 2020). Page 3 of 30 ## **Liverpool North Central Methodist Circuit (Number 18/03) Year Ended 31 August 2020** - ‘Table Sale’ at County Hub, run by volunteers and providing good links with the local Walton community. - Good links with the County Neighbourhood Watch Scheme. - Intergenerational Activities (‘one offs’), for example: Bread making, baking activities, Christian Celebrations, quiz evenings and a Brunch/Lunch pilot in Anfield. - Film Club for children and families in County, showing U or PG films. - Community lunch – a community outreach providing a weekly lunch to adults with various needs. See further detail below. - Puppets – developing the use of puppets in worship and in the community - ‘That Reading Thing’ – a programme designed to develop literacy skills, carried out in association with partners. - Creative use of social media to tackle exclusion. The Community Intergenerational Project’s vision and action has been well received and actively recognised through continuing financial support by the Methodist Church Connexion and District. ## **Community lunch** In September 2019, the new CCLO joined the Deacon in coordinating the established Kensington Community Lunch, in advance of the Deacon’s scheduled retirement in August 2020. This continued until the start of the Covid pandemic in March 2020 when immediate suspension of the Wednesday lunch sessions proved necessary. The CCLO was placed on furlough for a short period, returning to post in July 2020. Subsequent focus was placed upon risk assessment analysis and developing strategy for re-introducing community projects in light of social distancing and health and safety requirements. Prior to lockdown, a core group continued to attend each week with others who visited less regularly. The majority of visitors continue to be male although we have observed an increased number of females attending this year. All visitors continue to present with a variety of need, including homelessness, inadequate housing and need for supported living. Many visitors demonstrate degrees of learning difficulties, mental health problems and substance abuse. We regularly encounter individuals seeking asylum and in need of assistance in securing basic services. Many of our visitors have little support from family or friends and are quite socially isolated but respond well to the friendship and support that is offered. Changes and cuts in welfare benefits continue to impact those who attend Community Lunch. Frequent sanctions or delays with benefit claims and difficulties with universal credit leave many people destitute with no money. We have observed a rise in the number of people known to us who find themselves homeless and to whom we have been able to provide clothing, introduction to food banks as well as other social or welfare services. Our intercessory prayer ministry where prayer cards are placed on the tables and our visitors can ask for prayers for themselves or for family or friends has continued to be well used. Page 4 of 30 **Liverpool North Central Methodist Circuit (Number 18/03) Year Ended 31 August 2020** In March 2020, our team of Community Lunch volunteers were stood down due to COVID19 lockdown. Throughout the ensuing months, ongoing contact and support was maintained via text messaging and telephone calls. ## **Circuit Churches and Pastoral Care** During 2019-20, Liverpool North Central Circuit continued to operate with three church congregations based within four buildings: Kensington Methodist Church, West Derby Methodist Church and Oakfield Methodist Church with County Hub. Worship and congregational life continued until mid-March 2020. During the COVID-19 national lockdowns, Oakfield Methodist Church with County Hub distributed at-home worship resources by post and e-mail. West Derby Methodist Church transitioned into weekly Sunday services via Zoom. Kensington Methodist Church elected to allow its members to utilise the availability of Methodist Church online worship which was broadcast weekly from Methodist Central Hall Westminster. Each congregation focused upon telephone and e-mail communication to maintain contact and support for one another. ## **2.2 Plans for future years** Our mission work enables us to continue to see on a daily basis the raw impact of deprivation within the communities of inner city North Liverpool. People and community remain at the heart of the vision of the Circuit and we continue to be passionate in developing our mission to those living most local to us. Future plans include re-assessment of components and activities which were suspended due to COVID-19 lockdowns as discussed in the previous section. In addition, the global pandemic has allowed the Intergenerational Project to identify and further clarify overall mental health links with loneliness, as a priority within our communities. We hope to specifically address this area in the coming year. Future possibilities that we have already identified include using art therapy techniques in social settings, a film club feature aimed at isolated and elderly adults, and additional support work with families. ## **3 FINANCIAL REVIEW** During the year the Circuit received total income of £116k (2018-19: £101k) and dispersed £120k (2018-19 £108k). The resulting excess of expenditure was increased by a small unrealised loss of £335 (2018-19: gain of £392) on the restricted reserves and endowments to produce a net excess of expenditure of £4k (2018-19: £7k) and total reserves carried forward of £512k (2018-19: £516k). The Circuit’s main source of funding was the assessments obtained from each Church within the Circuit based on financial capabilities of the Churches and this was used to defray most of the cost of administering the Circuit. This sum amounted to £62,484 (201819: £60,808). The income from properties relates to the rental of manses, one to a private tenant under an assured tenancy agreement and the other to the Liverpool City Centre Circuit under an agreement relating to the sharing of costs of the Superintendent Minister. The default of the tenant on rent payments has required a write back of previously accrued rentals. Page 5 of 30 **Liverpool North Central Methodist Circuit (Number 18/03) Year Ended 31 August 2020** Grants received are from the Liverpool District Advance Fund towards the general operating costs of the Circuit and from Methodist Church connexion and Liverpool District Advance Fund towards the costs of the Community intergenerational project. An additional job retention scheme grant was received from Government to offset the payroll costs of one intergenerational worker, on furlough for a number of months during the Covid pandemic. The unrestricted general account shows an improvement on the budget deficit amount with lower travel, property and administration costs being offset by lower lettings income. There were no significant events during the year. Stipend expenditure has increased each financial year in line with conference approved increases. 15% of general fund expenditure is the Circuit contribution to the District and Connexion of which a significant part is used to fund the work of the wider Methodist church. The trustees of the Circuit have every reason to believe that the Circuit is a going concern, principally because Churches continue to meet their assessments and the Circuit has adequate reserves to cover a shortfall in anticipated income. There are no subsidiary undertakings. Trustees do not foresee any factors that will significantly affect the financial performance or position in the next year or two. The COVID-19 pandemic is an ongoing impact to the Circuit. Whilst current income streams remain robust and reserve levels strong, there may be changes in the wider Methodist Church that affect the financial performance or position in the immediate years ahead. The Circuit continues to hold two freehold properties being the Manses in Priory Road and Eaton Road, Liverpool. ## **3.1 Investment Policy and Performance** To comply with Methodist Standing Orders, monies for long term investment are lodged with the Trustees for Methodist Church Purposes (TMCP). TMCP acts as custodian trustee for all real estate held by Circuits and for all large (over £20k) bequests and for the proceeds of sale of any property formerly owned by the Circuit. These sums are invested in unitised investments or held on deposit. The investment returns are close to tracking the movements in the FTSE100 index. The deposit income mirrors the deposit rates available elsewhere. The Circuit’s trustees’ investment policy is aligned with that of the CFB and TMCP because these organisations take into consideration the social, environmental and ethical considerations, both negatively and positively, that make investments suitable for the Methodist Church. Short term deposits are lodged directly with the Central Finance Board (CFB) and attract good rates of interest. There are no bench marks for the expected returns or appreciation on investments at TMCP and CFB. It is the Circuit’s policy to manage the cash and investment resources of the Circuit so that a rate of return on investment – both by way of dividend and capital appreciation – is obtained at least as good as market rate considering the Circuit’s low appetite for risk. Page 6 of 30 **Liverpool North Central Methodist Circuit (Number 18/03) Year Ended 31 August 2020** ## **3.2 Reserves level and policy** The Circuit Reserves policy relates to our general (unrestricted) funds which are freely available to be used for any or all of the purposes of the Circuit. The aims are: - to secure and sustain the Circuit’s viability and future. - to give reassurance to the general public that the Circuit, which is a charity, intends to use all of the money coming into its care for the purposes of the charity. The reserves held at the end of the year were as follows: |
_Unrestricted funds_
General Fund
Circuit Model Trust Fund
**_Total unrestricted funds_**
_Restricted funds_
Mission Income

Mission Capital

Kensington Outreach

CFW Projects
Intergenerational Mission
**_Total restricted funds_**

**_Total endowment funds_**
**_Total funds_**

**Available Reserves**
Total unrestricted funds
_Less:_invested in the manse

**Uncommitted reserves, readily available**|£
476,726
4,582
**_481,308_**
171
24,232
2
1,514
1,995
**_27,914_**
**_3,357_**
**_512,579_**
481,308
(430,000)| |---|---| ||**51,308**| There are no funds materially in deficit. All funds are separately invested either with CFB or TMCP. No money is directly invested in property, securities or other forms of investment. The minimum policy level of the readily available part of the General Fund is such as to pay for: - three months’ payroll costs and closing costs of staff redundancies - £22k • three months administration and staff expense costs - £ 3k • manse repair reserve - £20k • three months connexional and district assessment - £ 4k At 31 August 2020 this sum amounted to £49k against actual readily available reserves of £51k as stated above. Actual readily available reserves were thus in excess of policy at the year end by £2k. The trustees are mindful of the potential impact of the Covid-19 pandemic on future income from church assessments. These funds are not secure and it is judged prudent to retain a buffer against this funding volatility. Page 7 of 30 **Liverpool North Central Methodist Circuit (Number 18/03) Year Ended 31 August 2020** ## **3.3** ## **Plans for 2020/21** Circuit financial plans for the coming year are for a reduction from one and a half full time ordained staff to one full time ordained staff member along with two part time lay workers. Plans include anticipated cost of living stipend increases, combined with a small increase in the assessment paid to the District and Connexion such that on average a 2.5% assessment increase has been requested from the circuit churches. ## **4 TRUSTEES’ RESPONSIBILITIES** For each financial year ending on 31 August the Trustees are required to prepare financial statements that give a true and fair view of the Circuit’s financial activities during the year and of its financial position at the end of the year. In preparing these financial statements, the Trustees must: - select suitable accounting policies and applied them consistently using the accruals method - make judgements and estimates that are reasonable and prudent - follow applicable accounting standards - prepare accounts to comply with the Charities SORP The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Circuit and enables them to ensure that the financial statements comply with the law. They are also responsible for safeguarding the assets of the Circuit and hence taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Circuit’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. ## **4.1 Training** Training in the responsibilities of trustees is offered to all new trustees soon after their appointment. A range of guidance produced by Methodist Connexion to support the effective running of the Circuit and the role of Trustees is utilised when required. ## **4.2 Risk** The major risks have been identified and recorded by the Trustees with professional advice taken as required. There is a regular annual review process undertaken and recorded. Risks are managed by being aware of them, quantifying their impact not only in cost terms but in possible reputational or structural damage, laying them off through an insurer and minimising them by not taking them or by setting up control systems that timeously report any significant change in the risk. Income and Expenditure is being monitored in total and is compared with the approved annual budget on a half yearly basis to detect trends as part of the risk management process to avoid unforeseen calls on reserves. ## **4.3 Safeguarding** Every person has a value and dignity which comes directly from the creation of male and female in God’s own image and likeness. Christians see this potential as fulfilled by God’s Page 8 of 30 ## **Liverpool North Central Methodist Circuit (Number 18/03) Year Ended 31 August 2020** re-creation of us in Christ. Among other things this implies a duty to value all people as bearing the image of God and therefore to protect them from harm. Methodist Connexional practice outlines commitment to the following principles: - the care and nurture of, and respectful pastoral ministry with, all children, young people and adults - the safeguarding and protection of all children, young people and adults when they are vulnerable - the establishing of safe, caring communities which provide a loving environment where there is informed vigilance as to the dangers of abuse. - We will carefully select and train all those with any responsibility within the Church, in line with Safer Recruitment principles, including the use of criminal records disclosures and registration with the relevant vetting and barring schemes. - We will respond without delay to every complaint made which suggests that an adult, child or young person may have been harmed, cooperating with the police and local authority in any investigation. - We will seek to work with anyone who has suffered abuse, developing with them an appropriate ministry of informed pastoral care. - We will seek to challenge any abuse of power, especially by anyone in a position of trust. - We will seek to offer pastoral care and support, including supervision and referral to the proper authorities, to any member of our church community known to have offended against a child, young person or vulnerable adult. - In all these principles we will follow legislation, guidance and recognised good practice The Circuit commits itself to ensuring the implementation of Connexional Safeguarding Policy; government legislation, guidance and safe practice. The Circuit commits itself to the provision of support, advice and training for lay and ordained people that will ensure people are clear and confident about their roles and responsibilities in safeguarding and promoting the welfare of children and adults who may be vulnerable. ## **5 STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **5.1 Structure** Circuits are the coordinating charities for local groups of Churches; Circuits pay the stipends of the ministers and employ lay staff to serve the Churches in the Circuit; most decisions are made at or ratified by the Circuit Meeting. A District is the coordinating charity for a group of contiguous Circuits and makes its decisions at the half yearly synods. The Methodist Conference meets once each year as the supreme denominational body for all Methodist Churches. - Overall regulatory authority rests with the Methodist Conference. - The Connexional Office implements decisions made by Conference and is also responsible for the stationing of presbyters and deacons (collectively known as ministers) in individual Circuits within the District. - Connexional decisions are passed to the Chair of the District and the appropriate officers of the District for implementation. - The District passes control down to Circuit level for local implementation by the Superintendent Minister, ministerial staff and Circuit Stewards, and authority is delegated to the Circuit Meeting for certain matters. Page 9 of 30 ## **Liverpool North Central Methodist Circuit (Number 18/03) Year Ended 31 August 2020** - The Circuit Meeting passes regulatory control down to Church Councils for local implementation by the presbyter, the Church Stewards, and other officers, and this regulatory authority is then exercised by Church Councils as Managing Trustees of their charity. ## **5.2 Purposes of the Methodist Church** The purposes of the Methodist Church are and shall be deemed to have been since the date of the union the advancement of: - the Christian faith in accordance with the doctrinal standards and the discipline of the Methodist Church - any charitable purposes for the time being of any connexional, District, Circuit, local or other organisation of the Methodist Church - any charitable purpose for the time being of any society or institution subsidiary or ancillary to the Methodist Church - any purpose for the time being of any charity being a charity subsidiary or ancillary of the Methodist Church. ## **5.3 Governance** The Circuit is an unincorporated association and is governed by the Methodist Church Act 1976, the Deed of Union and the Model Trust Deeds of the Methodist Church and was registered with the Charity Commissioners on 4 September 2015. The Circuit operates within a statutory framework of regulation and seeks to ensure that it follows Methodist Standing Orders. It relies on the Connexional Office at 25 Marylebone Road, London NW1 5JR to provide guidance on changes that could affect the Circuit. The appointment of Trustees and other officers follows the Constitutional Practice and Discipline of the Methodist Church (CPD). The primary governing body of the Circuit is the Circuit Meeting (the trustees), which is responsible for the general oversight of the Circuit. The Trustees receive no remuneration or other financial benefits. The members of the Circuit Meeting are the Charity Trustees, membership being made up of Circuit office holders, ministers and representatives appointed by the churches. The Circuit Meeting normally meets four times per year and deals with routine and exceptional matters. ## **5.4 Management** Day to day management of the circuit is undertaken by the Circuit Staff and Circuit Stewards in consultation with the Circuit Meeting, alongside the Local Preachers meeting and the Circuit Property Committee. Page 10 of 30 **Liverpool North Central Methodist Circuit (Number 18/03) Year Ended 31 August 2020** ## **6 REFERENCE AND ADMINISTRATION DETAILS** ## **6.1 Charity Name** Liverpool North Central Methodist Circuit ## **6.2 Charity Registration Number** 1163418, registered in England and Wales ## **6.3 Principal Office** c/o Oakfield Methodist Church Oakfield Road Liverpool L4 0UQ E-mail **mail@liverpoolnorthcentral.org.uk** Web Site **www.liverpoolnorthcentral.org.uk** ## **6.4 Superintendent Minister** The Revd Ian Hu ## **6.5 Secretary of the Circuit Meeting** Mrs Ruth Stirrup ## **6.6 Circuit Minister** Deacon Flip den Uil until August 2020 ## **6.7 Circuit Stewards** Mr Frank McFarlane (Managerial) Mr David K Smith ## **6.8 Property Secretary** Mr Ian Culshaw ## **6.9 Names of trustees** The following served as trustees throughout part or all of the year 2019-20 or were trustees at the time of this report being approved: Mr Don Ashton until February 2020 Mrs Gillian Culshaw Mr Ian Culshaw Mr William Eales The Revd Ian Hu Mr Brian Kiel Ms Joan Lewis Mr Frank McFarlane Mrs Patricia McGinty Ms Lorraine Oram Mr David K Smith Mr David Stirrup Mrs Ruth Stirrup Mrs Jill Stubbs Mrs Alison Twist Page 11 of 30 ## **Liverpool North Central Methodist Circuit (Number 18/03) Year Ended 31 August 2020** Mr Steve Twist Deacon Flip den-Uil until August 2020 Mr David Williamson No trustee claims exemption from disclosure of his or her name here. ## **6.10 Children and Family Worker** Mrs Alison Twist ## **6.11 Community and Church Liaison Officer** Ms Karen Macklin from September 2019 ## **6.12 Bankers** HSBC plc Central Finance Board of the Methodist Church 99 – 101 Lord Street 9 Bonhill Street LIVERPOOL London L2 6PG EC2A 4PE ## **6.13 Investment managers and custodian trustees** Trustees for Methodist Church Purposes Central Buildings Oldham Street Manchester M1 1JQ ## **6.14 Independent Examiner** Mr Anthony Kletz FCA 46 Talbot Street Southport PR8 1HS ## **Approvals** The Trustees’ Report and the Financial Statements were approved by the Circuit Meeting on 17 March 2022. Signed on behalf of the Circuit Meeting, as authorised: Ian Hu (signed) David K Smith (signed) Rev Ian Hu David K Smith Superintendent Date: 17 March 2022 Circuit Treasurer Date: 17 March 2022 Page 12 of 30 **LIVERPOOL NORTH CENTRAL METHODIST CIRCUIT** **Number 18/03** ## **Statement of Financial Activities (SOFA) for the year ended 31 August 2020** |**Notes to the**
**accounts**
**Income and Endowments**
Donations and legacies
7
Income from monetary
investments
Income from investment
properties
3
Assessments on Churches
4
Capital Receipts
Grants received
5
Other charitable activities
6
**Total from charitable**
**activities**
Other income
**Total income and**
**endowment**s
**Expenditure**
Grants and donations
8
Salaries and associated
costs
9
Property maintenance
11
Connexional assessment
13
District Assessment and
Levy
14
Office and administration
costs
12
Other charitable activities
15
**Total charitable**
**expenditure**
Gains/(losses) on monetary
investments
**Net income/(expenditure)**
Transfers between funds
17
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried**
**forward**|**General Fund**
**(Unrestricted)**
**Circuit Model**
**Trust Fund**
**(Unrestricted)**
**Designated**
**Funds**
**(Unrestricted)**
**Restricted**
**Funds**
**Endowment**
**Funds**
**Totals**
**2019-20**
**Totals**
**2018-19**
**£**
**£**
**£**
**£**
**£**
**£**
**£**
3,542
3,542
1,122
249
41
438
58
786
1,107
(3,900)
(3,900)
62,484
62,484
60,808
16,000
32,821
48,821
33,422
4,541
4,541
4,511| |---|---| ||**79,374**
**41**
**36,801**
**58 116,274**
**100,970**| ||| ||**79,374**
**41**
**36,801**
**58 116,274**
**100,970**| ||282
57,095
31,840
88,935
69,727
4,131
4,131
9,456
12,875
12,875
13,396
3,897
118
4,015
4,069
4,182
9
2,193
13
6,397
9,040
3,718
3,718
2,196| ||**82,180**
**127**
**37,751**
**13 120,071**
**108,166**| ||(346)
11
(335)
392| ||**(2,806)**
**(86)**
**(1,296)**
**56**
**(4,132)**
**(6,804)**| ||(968)
(30)
1,042
(44)| ||**(3,774)**
**(116)**
**(254)**
**12**
**(4,132)**
**(6,804)**| ||| ||**480,500**
**4,698**
**28,168**
**3,345 516,711**
**523,515**| ||**476,726**
**4,582**
**27,914**
**3,357 512,579**
**516,711**| Page 13 of 30 **LIVERPOOL NORTH CENTRAL METHODIST CIRCUIT** **Number 18/03** ## **Balance Sheet as at 31 August 2020** |**Notes to the**
**accounts**
**Fixed Assets**
Circuit Manse
18
Investment property
19
Investments
**_Total fixed assets_**
**Current Assets**
Debtors
20
Investments with TMCP
21
Central Finance Board
Deposits
22
Cash at Bank and in hand
**_Total current assets_**
**Current liabilities**
Creditors (due in under 1
year)
23
**_Net current assets/liabilities_**
**_Total assets less current_**
**_liabilities_**
**_Net assets_**
**Funds of the Circuit**
General Fund (Unrestricted)
Circuit Model Trust Fund
(Unrestricted)
Designated Funds
(Unrestricted)
**_Total Unrestricted Funds_**
Restricted Funds
Endowment Funds
**_Total Funds_**|**General Fund**
**(Unrestricted)**
**Circuit Model**
**Trust Fund**
**(Unrestricted)**
**Designated**
**Funds**
**(Unrestricted)**
**Restricted**
**Funds**
**Endowment**
**Funds**
**Total**
**2020**
**Total**
**2019**
**£**
**£**
**£**
**£**
**£**
**£**
**£**
150,000
150,000
150,000
280,000
280,000
280,000
21,461
1,182
22,643
22,978| |---|---| ||**430,000**
**21,461**
**1,182**
**452,643**
**452,978**| ||13,029
13,029
20,227
3,396
4,582
2,772
2,175
12,925
13,000
21,218
21.218
18,958
42,602
3,681
46,282
39,527| ||**80,244**
**4,582**
**6,453**
**2,175**
**93,454**
**91,712**| ||33,518
33,518
27,979| ||**46,726**
**4,582**
**6,453**
**2,175**
**59,936**
**63,733**| ||| ||**476,726**
**4,582**
**27,914**
**3,357**
**512,579**
**516,711**| ||| ||**476,726**
**4,582**
**27,914**
**3,357**
**512,579**
**516,711**| ||476,726
476,726
480,500
**4,582**
4,582
4,698| ||**476,726**
**4,582**
**481,308**
**485,198**
27,914
27,914
28,168
3,357
3,357
3,345| ||**476,726**
**4,582**
**27,914**
**3,357**
**512,579**
**516,711**| Page 14 of 30 **Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2020** ## **1 Accounting framework and accounting policies** ## **i Accounting framework** The financial statements have been prepared under the Charities Act 2011 in accordance with the 2014 version of _Accounting and Reporting by Charities: Statement of Recommended Practice (SORP)_ applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective from 1 January 2015) – (the Charities SORP (FRS 102) as amended by Update Bulletin 1) – in replacement for the SORP’s 2005 version specified in its related 2008 Regulations and in accordance with the “true and fair override” provision contained therein. ## **ii** ## **Public benefit entity** The Liverpool North Central Methodist Circuit (“Circuit”) meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s) below. ## **iii** ## **Basis** These accounts have been prepared on the basis of historical cost except that investments are shown at their market value at the end of the year, on the accruals basis to show a true and fair view of the Circuit’s financial position and activities. ## **iv** ## **Content** The financial information presented is relevant, reliable, comparable and complete. Where estimates are used these are based on experience, research and judgement. The accounts are expressed in £Sterling, rounded to the nearest pound. ## **v** ## **Going concern** Based on the monetary assets and human resources available at 31 August 2019, the trustees believe that the Circuit is a going concern. ## **vi** ## **Consolidation** The Circuit has denominational regulatory oversight in respect of the work of the Churches within the Circuit but has no legal or operational control of those Churches and their governing bodies except in extreme circumstances. For this reason, the financial statements of Churches within the circuit are not consolidated into these financial statements. ## **vii Income recognition** Income is brought into account when it is more likely than not that the economic benefit of the income will accrue to the Circuit. No attempt is made to measure the value of services donated by volunteers. Individual amounts categorised as _Other income_ in the SOFA will be shown separately if they are considered material. The Circuit acts as agent in two matters: - the collection from Churches and payment over of their contributions to various Funds controlled and administered by The Methodist Church – “Connexional Funds”. Page 15 of 30 ## **Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2020** - the payment of accounts to the Property Caretaker and church cleaner on behalf of West Derby Methodist Church. In both these matters the transactions are not reflected in the SOFA because they are the income and expenditure of either the Connexion or church as appropriate. In accordance with the Charities SORP (FRS 102), the time of volunteers is not recognised. Further information on this matter is provided in the Trustees’ Annual Report. If goods are donated, a value will be shown in the SOFA or notes where the value is considered material. ## **viii Expenditure** This is recognised when a liability is incurred, or a constructive obligation arises, that results in the payment being unavoidable. Liabilities are recognised as soon as an outflow of economic benefit is considered more likely than not under the legal or constructive obligation committing the Circuit to pay out resources. ## **ix VAT** Since the Circuit is not VAT registered, all input VAT is charged with the expenses to which it refers. ## **x** ## **Tangible fixed assets** These are capitalised if they can be used for more than one year, and individually cost at least £1,000. The freehold properties are shown in the accounts at 2015 deemed values, of which the land component is deemed to be £100,000. No depreciation is provided on the buildings because the trustees consider the current residual fair value of the manse buildings (on the assumption that it had reached the end of its useful economic life by the year-end) to be not less than its cost to date. The properties have been reviewed for impairment. ## **xi Investments** The investments of the Circuit are held by the Trustees for Methodist Church Purposes (TMCP) as custodian trustees. The valuations, at market value, are those provided by TMCP. The unrealised gains arising on investments at the end of the year are shown in the SOFA and in Note 26 below. ## **xii** ## **Receivables and Payables; Bank and Cash** Debtors are stated at the amounts owed to the Circuit or prepaid. Creditors are initially recognised at settlement amount after any trade discounts, where normal credit terms apply, or amount advanced to the Circuit. Subsequently creditors that are current liabilities are measured at the cash or other consideration expected to be paid. The liquid funds of bank balances and deposit account balances are shown at the realisable values. ## **xiii Methodist Connexional Funds** The Methodist Church Connexion raises assessments against Circuits and these are paid quarterly to their Districts. The Circuits raise assessments against Churches in the Circuit. The District quarterly remits to the Methodist Church Fund most of the sum received from Circuits. A small sum is retained by the District to meet its own costs. The Circuit may act as agent for ad hoc collections for various funds controlled and administered by the Methodist Church. Page 16 of 30 **Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2020** ## **xiv Endowment funds** Where the Circuit holds money that may not be spent and must be retained (as capital) to generate an income the money or assets to be retained are classified as an Endowment Fund. The capital will be shown in the balance sheet in the column for endowment funds. The income may be restricted or unrestricted depending on the terms of the endowment. ## **xv Ministers’ manse costs** The Circuit is required to provide accommodation for each minister in the Circuit and their families and this is seen as a benefit to the Circuit. Ministers are expected to occupy the manse provided for them. The Circuit bears the cost of repairs, maintenance, buildings insurance, Council Tax and water charges. These figures are not separately disclosed as benefits in kind for ministers as HMRC does not seek to tax these receipts in the hands of the ministers. ## **2 Glossary of terms** **CFB:** Central Finance Board of the Methodist Church manages a Common Deposit Fund and a series of pooled investment funds for Methodist entities in Great Britain and provides investment advice to those entities **Church:** a group of members from fewer than 10 to more than 300 **Circuit:** a group of Methodist Churches near each other **CMTF:** Circuit Model Trust Fund **Connexion:** The Methodist Church in GB which includes the Head Office at Methodist Church House, all Methodist Circuits, Circuits and Churches in Great Britain **District:** a group of contiguous Circuits **DAF:** District Advance Fund **FRS:** Financial Reporting Standard **HMRC:** Her Majesty’s Revenue and Customs **JRBT:** Joseph Rank Benevolent Trust **MCF:** Methodist Church Fund **MMPS:** Methodist Ministers’ Pension Scheme **MWIB:** Methodist Women in Britain (Liverpool Circuit) **Pensions Trust:** The Pensions Trust, the organisation through which the Circuit arranges a pension scheme for its lay employees **RMG:** Resourcing Mission Group. The policy committee of the Circuit **SOFA:** Statement of Financial Activities **SORP:** Statement of Recommended Practice **TMCP:** Trustees for Methodist Church Purposes, the legal owner and Custodian Trustee of all Methodist Model Trust property, including Legacies, Endowments and Accumulated Funds ## **3 Income from Investment Property** The trustees have determined that the property listed below is unlikely to be returned to use as a manse in the foreseeable future and have therefore classified the same as an Investment Property. Following tenant default, prior year accrued income has been restated, although debt is still outstanding. ||General|CMTF|Desig|Restricted|Endow|Total|2019| |---|---|---|---|---|---|---|---| |Letting Income:|||||||| |25 Eaton Road
(3,900)||||||**(3,900)**|0| |**Totals**
(3,900)||||||**(3,900)**|**0**| Page 17 of 30 **Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2020** ## **4 Assessments on Circuits** The Circuit comprises of 3 churches and each is assessed for a contribution to meet the overall net costs of the Circuit. In making its assessment budgeted income from investment income (including property letting) and confirmed external grants is taken into account. The Circuit aims to cover all its net core costs from the Assessment. ||General|General|CMTF|Desig|Restricted|Endow||Total||2019| |---|---|---|---|---|---|---|---|---|---|---| |Assessments:||||||||||| |Oakfield with County Hub||27,020||||||**27,020**||**26,344**| |Kensington||13,428||||||**13,428**||**12,428**| |West Derby||22,036||||||**22,036**||**22,036**| |**Totals**||**62,484**||||||**62,484**||**60,808**| An assessment on churches is annually determined based on church income and ability to pay. Assessments on churches are quarterly in advance and are treated as pre-payments on a receivable basis. If any church has not paid its assessment by the due date the sum in question is treated as a creditor. All churches paid their assessments to the Circuit during the year or shortly after its end. ## **5 Grants received** ||General|General|CMTF|Desig|Restricted|Restricted|Restricted|Endow||Total|Total||2019| |---|---|---|---|---|---|---|---|---|---|---|---|---|---| |**Circuit Ministry**|||||||||||||| |District Advance Fund||16,000||||||||**16,000**|||16,000| ||||||||||||||| |**CFW Ministry**|||||||||||||| |Joseph Rank Ben. Trust|||||||||||||9,000| |District Advance Fund|||||||||||||8,422| ||||||||||||||| |**Intergenerational Ministry**|||||||||||||| |Methodist Church||||||16,000||||**16,000**|||| |District Advance Fund||||||12,000||||**12,000**|||| |Job Retention Scheme|||||||4,821||||**4,821**||| ||||||||||||||| |**Totals**||**16,000**||||**32,821**||||**48,821**|||**33,422**| The District Advance Fund grant towards circuit ministry is year five of a five year priority grant to support ministry and mission work in deprived inner city communities within the circuit. The grants from Joseph Rank Benevolent Trust and District Advance Fund towards Children and Family work (CFW ministry) ended in 2019. The grants from Methodist Church and District Advance Fund towards intergenerational ministry are for year one of a three year grant to support community intergenerational work across the Circuit. Page 18 of 30 **7 Donations and legacies** ## **Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2020** The job retention scheme grant was received from Government to offset the payroll costs of an intergenerational worker on furlough for a number of months during the Covid pandemic. ## **6 Other charitable activities** ||General|General|CMTF|Desig|Restricted|Endow||Total||2019| |---|---|---|---|---|---|---|---|---|---|---| |**Manse contribution**||||||||||| |Liverpool City Centre Circuit||4,541||||||**4,541**||**4,511**| |**Totals**||**4,541**||||||**4,541**||**4,511**| ||General|CMTF|Desig|Restricted|Restricted|Endow||Total||2019| |---|---|---|---|---|---|---|---|---|---|---| |**CFW Projects**||||||||||| |Personal donations|||||**3,542**|||**3,542**||**830**| |||||||||||| |**MWIB**||||||||||| |Project Donations||||||||||**130**| |At Home Days||||||||||| |Easter Offerings||||||||||**152**| |**Totals**||||||||||**282**| |||||||||||| |**Donations and legacies**
**costs Totals**|||||**3,542**|||**3,542**||**1,122**| ## **8 Grants and donations** ||General|CMTF|Desig|Restricted|Endow|Total|2019| |---|---|---|---|---|---|---|---| |**MWIB**|||||||| |Project Donations|||||||**282**| |**Totals**|||||||**282**| ## **9 Salaries and associated costs** Stipends paid to one full time (2018-19: one) and one part time (2018-19: one) employees were as follows: ## **Stipends** ||General|General|CMTF|Desig|Restricted|Endow||Total||2019|2019| |---|---|---|---|---|---|---|---|---|---|---|---| |Stipends||42,799||||||**42,799**||41,072|| |National Insurance
contributions||4,267||||||**4,267**|||4,204| ||||||||||||| |Pension Fund contributions||10,029||||||**10,029**|||9,752| |**Totals**||**57,095**||||||**57,095**||**55,028**|| Page 19 of 30 **Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2020** The Circuit employs two part time, (2018-19: one) lay staff as follows: ||General|General|CMTF|Desig|Restricted|Restricted|Endow||Total||2019| |---|---|---|---|---|---|---|---|---|---|---|---| |Salary||||||28,580|||**28,580**||13,250| |National Insurance
contributions||||||1,545|||**1,545**||654| |Pension Fund contributions||||||1,715|||**1,715**||795| |**Totals**||||||**31,840**|||**31,840**||**14,699**| |Contracted Hours (pw)||||||40|||||| |**Salaries and associated**
**costs Totals**||**57,095**||||**31,840**|||**88,935**||**69,727**| No employees received employee benefits that totalled more than £60,000. There is no accrual for holiday pay as it is immaterial; the holiday year ends on 31 August. All staff are paid at or above the living wage. ## **Pensions** Most ordained presbyters and deacons are members of the Methodist Ministers’ Pension Scheme (MMPS). This is a defined benefit scheme. The Supreme Court held in 2014 that Methodist ministers (which term includes presbyters and deacons) are not employees of the Church. For simplicity, however, when dealing with National Insurance Contributions and pension contributions, the terms ‘employer’ and ‘employee’ are used as they would be in an employing body. On the other hand lay employees are contractually employees and may have the option of joining The Pensions Trust in accordance with Auto-enrolment legislation. The Connexion accounts for the MMPS pension scheme and shows the figures in the annual Methodist Church in Great Britain accounts. The MMPS is in surplus as at the 2017 actuarial valuation. Details of this scheme can be found in the Annual Report and Accounts of The Methodist Church at www.methodist.org.uk ## **10 Cost of Superintendent, Ministers and Trustees** The Superintendent of the Circuit, the other ministers and the remaining members of the CLT are considered as key management personnel. The Superintendent chairs meetings of the CLT and Circuit meetings. The members of the Circuit meeting are the trustees of the Circuit. The stipends, employer’s NIC and employer’s pension contributions and other expenses of the ministers of the Circuit are paid by the Circuit. The manses are provided by the Circuit and the Circuit maintains the property. The value of the Council Tax and water charges paid by the Circuit is not disclosed here as HMRC does not regard this as a benefit in kind in the hands of the minister. Each Minister is entitled to a three month sabbatical every five years and the expenses incurred by the Minister are met by the Connexion with the Circuit continuing to pay the stipend. During the year there has been no sabbatical. The Circuit does not accrue for holiday pay cover as the remaining staff cover the holidays as needed and without extra pay. Page 20 of 30 **Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2020** |Stipends of Ministers
Employer’s National Insurance contributions
Employer’s Pension contributions to a defined
benefit pension scheme||Total||2019|2019| |---|---|---|---|---|---| |||£||£|| |||**42,799**||41,072|| |||**4,267**|||4,204| |||**10,029**|||9,752| ||||||| |
**Total cost**||**57,095**||**55,028**|| ## **Payments to trustees** It is generally not Circuit policy to reimburse non-ministerial members of the CLT, Circuit Meeting and others involved in the administration of Circuit affairs for expenditure properly incurred in carrying out their duties. The Ministers of the Circuit undertake the primary executive roles within the Circuit. Apart from the Ministers and the Children and Family worker no member of the Circuit Meeting or CLT was in receipt of any payment for work undertaken on behalf of the Circuit, although certain travelling and administration costs may at times be re-imbursed in relation to specific projects. One trustee (Circuit Children and Family worker) is an employee of the Circuit and is in receipt of a salary and other employment related expenses. Travel and administration costs of £nil (2018-19: £nil) were paid to other trustees. ## **11 Property maintenance** The Circuit is managing trustee for two manses, one of which is occupied by a minister stationed in the Circuit. One manse (25 Eaton Road) is let on an Assured Shorthold Tenancy. With the exception of the let manse, the Circuit is responsible for the payment of Council Tax, Utilities, Water charges and Insurance. |**Manse costs**|General|General|CMTF|Desig|Restricted|Endow||Total||2019| |---|---|---|---|---|---|---|---|---|---|---| |Repairs and maintenance||||||||||| |131 Priory Road||332||||||**332**||6,346| |25 Eaton Road||476||||||**476**||450| |Council Tax||1,162||||||**1,162**||1,107| |Water Rates||932||||||**932**||700| |Insurance||879||||||**879**||853| |**Totals**||**3,781**||||||**3,781**||**9,456**| The Circuit covers the cost of quinquennial and electrical inspections in the circuit churches. The following costs were incurred: |**Other property costs**|General|General|CMTF|Desig|Restricted|Endow||Total||2019| |---|---|---|---|---|---|---|---|---|---|---| |Covid cleaning and
maintenance||350||||||350||| |**Totals**||**350**||||||**350**||**-**| |||||||||||| |**Property maintenance**
**Totals**||**4,131**||||||**4,131**||**9,456**| Page 21 of 30 ## **Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2020** ## **12 Office and administration costs** ||General|General|CMTF|Desig|Restricted|Restricted|Endow|Total|Total||2019| |---|---|---|---|---|---|---|---|---|---|---|---| |Internal transfer
(1,639)||||||||**(1,639)**|||| |PPSA||1,022||||389|||**1,411**||491| |Office expenses||||||613|||**613**||1,382| |Sundries||943|||||||**943**||1,075| |Training||25||||245|||**270**||95| |Telephone||265|||||||**265**||296| |Travel||3,422||||503|||**3,925**||4,656| |3Generate|||||||||||360| |Safeguarding||144|||||||**144**||| |Preaching and worship
expenses||||||394|||**394**||614| |TMCP charges|||9|||49|13||**71**||71| |**Totals**||**4,182**|**9**|||**2,193**|**13**||**6,397**||**9,040**| ## **13 Connexional Assessment** The Connexional Assessment is calculated relative to the proportion of staffing (ministerial and lay), church members, church attendances and total relevant income of all circuits in the Liverpool District. One third of the overall cost is calculated using staffing proportions, one third income proportions, one sixth attendance proportions and one sixth membership proportions. ||General|General|CMTF|Desig|Restricted|Endow||Total||2019| |---|---|---|---|---|---|---|---|---|---|---| |Methodist Church Fund
(MCF)||12,875||||||**12,875**||13.396| |**Totals**||**12,875**||||||**12,875**||**13,396**| ## **14 District Assessment** The District Assessment is calculated relative to the proportion of staffing (ministerial and lay), church members, church attendances and total relevant income of all circuits in the Liverpool District. One third of the overall cost is calculated using staffing proportions, one third income proportions, one sixth attendance proportions and one sixth membership proportions. Standing order provides that a levy be taken into District Advance Funds (DAFs) on all capital money held in each circuit model trust fund. The levy is 2.5% on the first £100,000. ||General|General|CMTF|Desig|Restricted|Endow||Total||2019| |---|---|---|---|---|---|---|---|---|---|---| |District assessment and
Levy||3,897|118|||||**4,015**||4,069| |**Totals**||**3,897**|**118**|||||**4,015**||**4,069**| Page 22 of 30 **Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2020** ## **15 Other charitable activities** ||General|CMTF|Desig|Restricted|Restricted|Endow||Total||2019| |---|---|---|---|---|---|---|---|---|---|---| |CFW projects running costs|||||2,720|||**2,720**||**1,296**| |Kensington projects running
costs|||||998|||**998**||**900**| |**Totals**|||||**3,718**|||**3,718**||**2,196**| ## **16** ## **Investment management** During the year the Circuit paid £71 to TMCP, the custodians of the Circuit’s investments (Circuit Model Trust Fund and various endowment funds (2018-19: £71). The sum of £71 was levied at 0.2% on the value of the funds at the end of the year and is shown as allocated. See Note 12 above. ## **17 Transfers between funds** During the year transfers of £44 were made between endowment funds and restricted funds being income earned on endowments available for restricted use. In addition, £1,000 was transferred between general fund and restricted funds Kensington outreach costs. . ## **18 Manse and other property** The value of the Circuit manse in Priory Road, Liverpool is shown in the accounts at 2015 deemed values, of which the land component is deemed to be £30,000. There is no depreciation on the manse as the impairment review at the end of the year confirmed that the current residual market value of the building was greater than the carrying value of that part of the asset’s cost to date. |part of the asset’s cost to date.||||||| |---|---|---|---|---|---|---| |||Land|Buildings|||Total| |||£||£||£| |**Cost or valuation**||||||| |Balance brought forward at 1 September, at
cost||30,000||120,000||150,000| |**Balance carried forward at 31 August 2020**||**30,000**||**120,000**||**150,000**| ## **19 Investment property** The trustees have determined that the property in Eaton Road, Liverpool is unlikely to be returned to use as a manse in the foreseeable future and have therefore classified the same as an Investment Property. The value of the property is shown in the accounts at 2015 deemed values, of which the land component is deemed to be £70,000. There is no depreciation on the property as the impairment review at the end of the year confirmed that the current residual market value of the building was greater than the carrying value of that part of the asset’s cost to date. |||Land|Buildings|Buildings||Total| |---|---|---|---|---|---|---| |||£||£||£| |**Cost or valuation**||||||| |Balance brought forward at 1 September, at
cost||70,000||210,000||280,000| |**Balance carried forward at 31 August 2020**||**70,000**||**210,000**||**280,000**| Page 23 of 30 **Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2020** ## **20 Debtors and prepayments** |**Debtors and prepayments**||||||| |---|---|---|---|---|---|---| |**Debtors were made up as follows:**||||||| ||2019-20|||2018-19||| ||£|||£||| |**Trade debtors**||||||| |Payroll costs–Liverpool District|||||4,644|| |Rent arrears–25 Eaton Road|||||3,900*|| |Payroll costs–West Derby MC|||2,767|||1,344| ||||_2,767_|||_9,888_| |**Prepayments and accrued income**||||||| |Payments in advance||10,262|||10,339|| |
_Unrestricted Prepayments:_||_10,262_|||_10,339_|| |||||||| |**Total (net)**||**13,029**|||**20,227**|| With the exception of items marked thus (*) all sums shown as Debtors at 1 September 2019 were received during the following year. All sums paid in advance at 1 September 2019 were for activities that have been held during 2019-20. ## **21 Trustees for Methodist Church Purposes** The funds that support the Mission Capital Fund are held by TMCP in Trustees Interest Funds on which interest is credited to the accounts each month. These are regarded as medium and long term investments. TMCP is the legal owner and Custodian Trustee of all Methodist Model Trust property, including Legacies, Endowments and Accumulated Funds. Trust property is held for and on behalf of local Managing Trustees who are responsible for the day to day management of trust property. TMCP ensure that, through providing guidance and acting under their direction, the Managing Trustees comply with charity law and Methodist law and policy as determined by the Methodist Conference. ## **22 Central Finance Board (CFB) and Cash at Bank** The Circuit has two current accounts at HSBC plc, an authorised institution. The sums held on those accounts are immediately available. In addition, the Circuit has one deposit account at CFB, a common deposit fund. Interest is earned on this account and credited monthly; the sums deposited can be withdrawn without notice and without loss of interest. These sums are viewed as being liquid. Page 24 of 30 **Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2020** ## **23 Creditors and accrued expenses** |**Creditors were made up as follows:**|2019-20|2019-20|2019-20|2018-19|2018-19|2018-19| |---|---|---|---|---|---|---| |||£|||£|| |**Trade creditors**||||||| |Minister’s expenses|||||1,714|| |_Total trade creditors_|||||_1,714_|| |||||||| |**Other creditors**||||||| |Advance payment||17,000*|||17,000*|| |
_Other creditors_|||_17,000_||_17,000_|| |||||||| |**Accruals and deferred income**||||||| |Assessments received in advance|||4,100|||6,755| |Various accruals|||12,418|||2,510| |_Unrestricted Accruals:_|||_16,518_|||_9,265_| |||||||| |**Total**|||**33,518**||**27,979**|| |**Maturity analysis of financial liabilities**|**Maturity analysis of financial liabilities**|**Maturity analysis of financial liabilities**|**Maturity analysis of financial liabilities**||||||| |---|---|---|---|---|---|---|---|---|---| ||Accrued at|||||Accrual||Accrued at|| ||01-Sep-19|||Paid in year||Made|in year|31-Aug-20|| |**Trade creditors**|||||||||| |Minister’s expenses||1,714|||1,714||||| |Total trade creditors||_1,714_|||_1,714_||||| ||||||||||| |**Other creditors**|||||||||| |Advance payment||17,000|||||||17,000| |
_Other creditors_||_17,000_|||||||_17,000_| ||||||||||| |**Accruals and deferred income**|||||||||| |Assessments received in advance|||6,755||6,755||4,100||4,100| |Various accruals|||2,510||2,510||12,418||12,418| |_Unrestricted Accruals:_|||_9,265_||_9,265_||_16,518_||_16,518_| ||||||||||| |**Total**||**27,979**||**10,979**|||**16,518**||**33,518**| With the exception of items marked thus (*) all sums shown as Creditors at 1 September 2019 were paid during the following year. It is expected that all sums accrued at 31 August 2020 will be paid during the year to 31 August 2021. ## **24 Unrestricted Funds** ## _**24.1 General Fund – balance £476,726 at 31 August 2020 (2019: £480,500)**_ The purpose of the fund is for use at the discretion of the trustees in the furtherance of the general objectives of the Circuit and which have not been designated for other purposes. About 89% of this fund is held as freehold properties, the Circuit manse and Investment property. Page 25 of 30 **Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2020** ## **25 Restricted Funds -** _**balance £27,914 at 31 August 2020 (2019: £28,168)**_ The Worship and Mission income Fund, balance £171 (2019 £133, is used principally to support worship and preaching costs in the circuit. Total expenditure in the year was £394. A capital amount, £24,232 at 31 August 2020, is invested to provide income to support the purposes of the fund. The Methodist Women in Britain Liverpool Circuit account – balance £nil (2019: nil) is prepared and controlled independently making donations to projects at home and overseas. Due to the covid pandemic there were no movements in fund during the year. The Kensington Outreach Fund – balance £2 (2019: balance £nil) provides funds for the circuit projects at Kensington Methodist church including the weekly community lunch. Total income in the year was £nil and expenditure was £998. A transfer from general funds of £1,000 was made to this fund. The Intergenerational Fund (previously CFW Fund) – balance £1,995 (2019: £2,764) is a project to support Community Intergenerational work across the Circuit supported by Methodist Church connexion and the District Advance Fund. This project commenced in August 2019, following the end of external funding to the CFW project. The CFW Projects – balance £1,514 (2019: £692) funds various community activities led by the Children and Family worker. Total income in the year was £3,542 and expenditure was £2,720. The market valuations for the various funds have been provided by TMCP. The funds of the Intergenerational project are held on deposit at HSBC and CFB. ## **26** ## **Summary of movements on significant individual funds** ||Balance at|Balance at||||||||Balance at|Balance at| |---|---|---|---|---|---|---|---|---|---|---|---| |**Fund**|01-Sep-19||Income||Expenditure|||Transfers|Gains/
Losses|31-Aug-20|| ||£|||£||£||£|£|£|| |General Fund|480,500|||79,374||(82,180)||(968)||476,726|| |Circuit Model Trust Fund||4,698||41|||(127)|(30)|||4,582| |**_Total unrestricted_**|
**_485,198_**|||**_79,415_**||
**_(82,307)_**||
**_(998)_**||**_481,308_**|| ||||||||||||| |Worship and Mission|133|||||(394)||432||171|| |Mission Capital|24,579|||438||(49)||(390)|(346)|24,232|| |Kensington Projects||||||(998)||1,000|||2| |MWIB Circuit|||||||||||| |CFW Projects||692||3,542||(2,720)|||||1,514| |Intergenerational project||2,764||32,821||(33,590)|||||1,995| |
**_Total restricted_**|**_28,168_**|||**_36,801_**||
**_(37,751)_**||**_1,042_**|**_(346)_**|**_27,914_**|| ||||||||||||| Page 26 of 30 ## **Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2020** |Circuit Account (Trust
822)|196|1||(1)||196| |---|---|---|---|---|---|---| |Hugh Rowlands (Trust
280)|378|7|(2)|(5)||378| |J Edmondson Bequest
(Trust 867)|2,342|42|(9)|(33)|11|2,353| |Edith Rimmer Bequest
(Trust 5243)|429|8|(2)|(5)||430| |
**_Total endowment_**|**_3,345_**|**_58_**|
**_(13)_**|
**_(44)_**|**_11_**|**_3,357_**| |||||||| |**Total Funds**|**516,711**|**116,274**|**(120,071)**||**(335)**|**512,579**| ## **27 Connected organisations and related parties** All of the Circuit trustees are members of one or another Church within the Circuit and may be trustees in their Churches. Connected organisations include the Methodist Connexion, Liverpool Methodist District, Churches within the Circuit, other Methodist Circuits in Great Britain, CFB and TMCP. All of these entities have their own trustees or directors and autonomous administration such that the Circuit has no significant influence over any of them, nor they over the Circuit. They are, therefore, not considered related parties. |are, therefore, not considered related parties.||| |---|---|---| |Names of Connected Organisations|Receipts
£|Payments
£| |Donee: Liverpool Methodist District–District assessment||(3,897)| |Donee: The Methodist Church Fund – Connexional
assessment||(12,875)| |Donor: Churches within Liverpool North Central Circuit
(assessments on Churches}|62,484|| |Donor: Liverpool Methodist District – Grant from District
Advance Fund|16,000|| |Donor: Liverpool Methodist District – Grant from District
Advance Fund|12,000|| |Donor: The Methodist Church Fund–Connexional grant|16,000|| |Donor: Liverpool City Centre Circuit–Manse contribution|4,541|| There were no related party transactions. ## **28 Volunteer contributions** Every entity (Connexion, Circuit, Circuit, and Church) within the Methodist Church in GB is heavily reliant on volunteers who contribute their skills, time and money in the furtherance of the work of the Church. Principally this contribution is by serving on committees of the Circuit that deal with mission, manses, finance, policy, grants, training, development. We are grateful to all of them for their help and commitment. ## **29 Capital commitments and contingent liabilities** There were no capital commitments or contingent liabilities at the year end (2018-19: nil). Page 27 of 30 ## **Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2020** ## **30 Lease commitments** The Circuit has no lease commitments ## **31 Independent examiner** No accrual has been made for the fee of the independent examiner who has provided his services free of charge (2018-19: Nil). The independent examiner provided no additional services during the year. Page 28 of 30 **Liverpool North Central Methodist Circuit (Number 18/3)** ## **Declarations and Scrutiny** I confirm that these accruals-based accounts for the year to 31 August 2020 have been prepared from the records of the Circuit and that they include all funds under the control of the Circuit Policy Committee. Signature of treasurer ……David Smith.. …………………………Date……17 March 2022 Name of treasurer ,,,,, **DAVID K SMITH** ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, ## Address … **16 DALEGARTH AVENUE, LIVERPOOL L12 0AJ** ……………… ## **Presentation to the Circuit Meeting** I confirm that the annual report and accounts for the year ended 31 August 2020 were presented to the Circuit Meeting at its meeting on 17 March 2022… Signature of the Chair of the meeting ……Ian Hu …………………………………… Name of the Chair of the meeting …… **REVD IAN HU…** … Date …17 March 2022……………….. ## **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 2020 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 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)(b) of the Charities Act 2011 - state whether particular matters have come to my attention. Page 29 of 30 **Liverpool North Central Methodist Circuit (Number 18/3)** ## **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 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 Examiner’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 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 have 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……Anthony M Kletz…………………………………….. Name of independent examiner … **MR ANTHONY M KLETZ** ………………………………… Relevant professional qualification of independent examiner … **FCA** …………………………. ## Address … **46 TALBOT STREET, SOUTHPORT PR8 1HS** ………. Date ………17 March 2022……………………………….………………………………… Page 30 of 30