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2022-08-31-accounts

LIVERPOOL NORTH CENTRAL METHODIST CIRCUIT

TRUSTEES’ ANNUAL REPORT AND ACCOUNTS YEAR ENDED 31 AUGUST 2022

Registered Charity No 1163418 c/o County Methodist Hub Harlech Street Liverpool L4 3RJ

www.liverpoolnorthcentral.org.uk

Liverpool North Central Methodist Circuit (Number 18/03) Year Ended 31 August 2022

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 five times during the year.

1.1 Mission Statement

Liverpool North Central Methodist Circuit seeks 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 in which we are based; i.e. Kensington, Walton and West Derby.

1.2 Mission Objectives

Worship - We offer a range of worship: different days, times and styles. We seek to encourage the following:

Learning and caring - We care for each other. We seek to carry out the following:

Service - Our Intergenerational Project supports our communities and beyond. We aim to carry out the following:

Evangelism - We try to share the love of Jesus in our everyday lives. We seek to achieve the following:

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Liverpool North Central Methodist Circuit (Number 18/03) Year Ended 31 August 2022

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.

2 ACHIEVEMENTS AND PERFORMANCE

2.1 Intergenerational working

Through its focus on children and families, volunteering, worship and faith development, the Circuit has continued to develop the “Community Intergenerational Project” which has concluded its third year. This project works in some of the most deprived areas of North Liverpool from the existing church bases at Kensington and West Derby, and at County Methodist Hub (Walton/Kirkdale).

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.

This third year of the project has emerged from the COVID-19 pandemic restrictions to focus primarily upon addressing isolation and loneliness with both adults and older adults, young families with small children and the integration of these component communities. Our activities continue to encourage socialisation whilst fostering interpersonal support networks.

The CCLO and CFW continue to collaborate in the running of ‘Arts and Hearts’ group. Art therapy strategies foster mindfulness, socialisation and creative expression, whilst attempting to tackle loneliness and mental health issues. This activity attracted up to twelve participants per week and was very well received. This group continued until May 2022 when the decision was made to conclude its work as similar resources became available elsewhere within the community.

Other ongoing and continuing activities include the following:

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Liverpool North Central Methodist Circuit (Number 18/03) Year Ended 31 August 2022

The project’s vision and community action continue to be well received and actively recognised through continued financial support by the Methodist Church Connexion and Liverpool Methodist District. Connexional funding for this project ceased in August 2022, and the circuit has successfully obtained a new Liverpool Methodist District grant for one year in order for this project to continue.

Circuit Churches and Pastoral Care

In September 2021, the circuit began the year with three worshipping churches contained in four buildings. The decision had been made to close Oakfield Methodist Church with County Hub effective Easter 2022. On 7 March 2022 the circuit meeting passed a resolution that following the cessation of worship on Sunday 17 April 2022, the Oakfield

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Liverpool North Central Methodist Circuit (Number 18/03) Year Ended 31 August 2022

Methodist Church building on Oakfield Road would be sold, and that proceeds would be earmarked for mission work in the circuit. It was decided to retain the County Hub building to house the Community Intergenerational Project with trusteeship transferring to the Liverpool North Central Circuit Meeting. On closure of the Oakfield building, the circuit office was relocated to County Methodist Hub. In addition, the Liverpool branch of the Zimbabwean Methodist Fellowship relocated from the Oakfield building to Kensington Methodist Church. At the close of this current year, normal progress for the Oakfield sale has been ongoing.

Oakfield Methodist Church with County Hub congregation members dispersed to other Methodist churches and to other denominations within the local community. In order to preserve ongoing fellowship and pastoral care, a bi-monthly coffee morning with devotions hosted by County Methodist Hub has proven to allow for ongoing pastoral contact and support.

The work at Kensington and West Derby Methodist Churches continues post pandemic. Following the loss of tenants and some members Kensington Methodist Church has alerted the Circuit about potential financial vulnerability concerns.

‘Refreshment Stop,’ the Circuit’s mid-week worship and fellowship element, is primarily supported by the former Oakfield with County Hub congregation members. This expression has grown in size over the past year and has attracted regular worshippers primarily from the surrounding Walton community.

2.2 Plans for future years

With the closure of Oakfield Methodist Church with County Hub, the circuit is now faced with increased financial, governance and personnel issues.

In this regard, conversations are ongoing with regard to the potential amalgamation of the Circuit together with the Liverpool North and Crosby Circuits from September 2023.

The Circuit has agreed a sale of the Oakfield buildings to release necessary cash to fund operations.

The Circuit is committed to develop the work of the Community Intergenerational Project in the circuit churches and within the base at County Hub. The Circuit has established a steering group to oversee the day-to-day operations of the County Hub building ensuring its suitability as a base for the office and activities of the Community Intergenerational Project. This steering group serves in an advisory capacity to the Circuit Meeting in its role as trustee body for the premises. We remain committed to prioritise addressing social and economic deprivation throughout both the Walton and Kensington areas. In addition, the CFW continues to support the family work at West Derby Methodist Church.

Changes to Methodist Church grant making capabilities will impact continuation of the Circuit’s Community Intergenerational Project beyond 2023. The Circuit meeting is committed to utilise reserves to fund this project through 2023-24. Tentative arrangements have been agreed to apply for one additional year of grant assistance from the Liverpool Methodist District in the event that building sale proceeds are delayed.

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Liverpool North Central Methodist Circuit (Number 18/03) Year Ended 31 August 2022

3 FINANCIAL REVIEW

During the year the Circuit received total income of £577k (2020-21: £84k) and dispersed £119k (2020-21 £108k). The resulting excess of income was reduced by an unrealised loss of £17k (2020-21: gain of £4k) on the properties, restricted reserves and endowments to produce a net excess of income of £441k (2020-21: deficit of £20k) and total reserves carried forward of £933k (2020-21: £492k).

The Circuit’s main source of funding was the transfer of property, cash and endowment funds following the closure of Oakfield Methodist Church. The properties of Oakfield church and house and County Hub are included at valuation at date of transfer. After the year end an offer to buy the Oakfield properties has been accepted at a price above the balance sheet valuation.

The usual main source of funding from assessments obtained from each Church within the Circuit was badly affected by the impact of the Covid pandemic on church finances. Both Oakfield and Kensington churches were unable to meet the set assessments. Oakfield’s decision to close and Kensington’s ongoing financial difficulties means that this will not be recovered. The assessments received in the year amounted to £36,978 (2020-21: £51,864).

Grants received are from Methodist Church connexion and Liverpool District Advance Fund towards the costs of the Community Intergenerational project. Income from properties are lettings received from community and charitable tenants of the County Hub premises. Donations are primarily charitable and individual contributions towards project activities of the Children and Family worker.

The unrestricted general account shows costs in line with budget as work practices returning to some normality despite various restrictions of the Covid pandemic in place in the year. There were no significant events during the year. Stipend expenditure and lay employee rates have increased each financial year in line with conference approved increases. It is Circuit policy that all staff in the Circuit are paid at or above the real living wage as calculated by the Living Wage foundation.

The net deficits on the designated Oakfield Property and County Hub Property accounts are transferred to general account. A contribution from general account is also transferred to the Intergenerational Project account.

25% 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.

Disregarding capital receipts, the general account incurred a deficit of £40k (2020-21: £23k). Despite this the level of deficit, the trustees of the Circuit have every reason to believe that the Circuit is a going concern, because of the high level of property reserves.

The Circuit holds four freehold properties being the Manses in Priory Road and Eaton Road, Liverpool and also the church and house properties at Oakfield and church buildings at County Hub. The sale of the Oakfield church and house will realise cash funds to pay off existing creditors, fund assessment shortfall in 2022/23 and fund essential maintenance and refurbishment of the Eaton Road manse. The Circuit has previously agreed to sell the Priory Road property to fund future work.

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Liverpool North Central Methodist Circuit (Number 18/03) Year Ended 31 August 2022

The Circuit has adequate reserves to cover any shortfall in anticipated income. There are no subsidiary undertakings. Trustees do not foresee any other factors that will significantly affect the financial performance in the next year or two.

After the year end the Circuit has agreed to amalgamate with Liverpool North Circuit and Crosby Circuit (excluding Formby Methodist Church) from September 2023. The amalgamation will establish a broader stability to the mission work of Methodism across North Liverpool and South Sefton and will support the continuing work of churches and mission projects in each of the Circuits. The structural, governance and management arrangements for the amalgamated Circuit are currently being finalised.

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.

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:

The reserves held at the end of the year were as follows:

£
Unrestricted funds
General Fund 848,416
Circuit Model Trust Fund 4,361
Total unrestricted funds 852,777

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Liverpool North Central Methodist Circuit (Number 18/03) Year Ended 31 August 2022

Restricted funds
Worship and Mission

Mission Capital

Oakfield Mission
Kensington Outreach

Intergenerational Mission
CFW Projects
Total restricted funds

Total endowment funds
Total funds

Available Reserves
Total unrestricted funds
_Less:_invested in properties

Uncommitted reserves, readily available		 439
26,179
19,146
-
899
4,874
51,537
28,577
932,891
852,777
(865,000)
(12,223)

There are no other funds materially in deficit. All investment 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:

At 31 August 2022 this sum amounted to £44k against actual readily available reserves of (£12k) as stated above. Actual readily available reserves were thus in deficit of policy at the year-end by £56k.

After the year end the sale of Oakfield church and house is agreed at an amount above the balance sheet valuation. On completion this will release substantial and sufficient funds to cover reserves policy requirement, pay creditors, cover budget shortfall for 2022/23 and provide funds for essential maintenance and refurbishment of the Eaton Road manse.

In addition, the trustees have previously agreed the sale of one manse property which should realise funds in excess of £100k to cover work for future years.

3.3 Plans for 2022/23

Circuit financial plans for the coming year are for a continuation of one full time ordained staff member along with two part time lay workers and one part time cleaner. 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.

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Liverpool North Central Methodist Circuit (Number 18/03) Year Ended 31 August 2022

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:

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 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:

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Liverpool North Central Methodist Circuit (Number 18/03) Year Ended 31 August 2022

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.

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:

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Liverpool North Central Methodist Circuit (Number 18/03) Year Ended 31 August 2022

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, along with the Local Preachers meeting and the Circuit Property Committee.

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Liverpool North Central Methodist Circuit (Number 18/03) Year Ended 31 August 2022

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 County Methodist Hub Harlech Street Liverpool L4 3RJ E-mail finance@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 Stewards

Mr Frank McFarlane (Managerial) (Deceased February 2022)

Mr David K Smith

Mr Stephen Twist (Property) from February 2022

Mr David Williamson (Property) from February 2022

6.7 Names of trustees

The following served as trustees throughout part or all of the year 2021-22 or were trustees at the time of this report being approved:

Mrs Gillian Culshaw to May 2022 Mr Ian Culshaw to May 2022 The Revd Ian Hu Mr Brian Kiel Ms Joan Lewis Mr Frank McFarlane (Deceased February 2022) Mrs Patricia McGinty Ms Lorraine Oram Mr David K Smith Mr David Stirrup to May 2022 Mrs Ruth Stirrup Mrs Jill Stubbs Mrs Alison Twist Mr Steve Twist Mr David Williamson

No trustee claims exemption from disclosure of his or her name here.

6.8 Children and Family Worker

Mrs Alison Twist

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Liverpool North Central Methodist Circuit (Number 18/03) Year Ended 31 August 2022

6.9 Community and Church Liaison Officer

Ms Karen Macklin

6.10 Bankers

CAF Bank Ltd 25 Kings Hill Avenue West Malling ME19 4JQ

Central Finance Board of the Methodist Church 9 Bonhill Street London EC2A 4PE

HSBC plc 99 – 101 Lord Street LIVERPOOL L2 6PG

6.11 Investment managers and custodian trustees

Trustees for Methodist Church Purposes Central Buildings Oldham Street Manchester M1 1JQ

6.12 Independent Examiner

Mr Anthony Kletz FCA 17 Gleneagles Drive Ainsdale Southport PR8 3PP

Approvals

The Trustees’ Report and the Financial Statements were approved by the Circuit Meeting on 5 June 2023.

Signed on behalf of the Circuit Meeting, as authorised:

Ian Hu (signed) David K Smith (signed)

Rev Ian Hu David K Smith Superintendent Date: 5 June 2023 Circuit Treasurer Date: 5 June 2023

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LIVERPOOL NORTH CENTRAL METHODIST CIRCUIT Statement of Financial Activities (SOFA) for the year ended 31 August 2022

Number 18/03

Notes to the
accounts
Income and Endowments
Donations and legacies
7
Income from monetary
investments
Income from properties
3
Assessments on Churches
4
Capital Receipts
6
Grants received
5
Other charitable activities
Total from charitable
activities
Other income
Total income and
endowments
Expenditure
Grants and donations
8
Salaries and assoc. 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
(Losses)/gains on monetary
investments
(Losses)/gains on properties
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
2021-22
Totals
2020-21
£
£
£
£
£
£
£
60
7,960
8,020
2,970
23
20
706
258
1,007
452
3,140
3,140
36,978
36,978
51,864
450,000
3,860
19,138
25,415
498,413
29,176
29,176
28,392
487,001
20
7,060
56,980
25,673
576,734
83,678
487,001
20
7,060
56,980
25,673
576,734
83,678
38,459
1,716
33,180
73,355
75,911
8,967
6,862
15,829
4,436
13,352
13,352
13,576
1,724
112
1,836
4,200
5,244
11
1,164
2,211
17
8,647
5,933
5,808
5,808
3,965
67,746
123
9,742
41,199
17
118,827
108,021
(1,701)
(173)
(1,874)
3,622
(15,000)
(15,000)
404,255
(103)
(2,682)
14,080
25,483
441,033
(20,721)
(9,060)
(4)
2,682
6,623
(241)
395,195
(107)
20,703
25,242
441,033
(20,721)
453,221
4,468
30,834
3,335
491,858
512,579
848,416
4,361
51,537
28,577
932,891
491,858

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LIVERPOOL NORTH CENTRAL METHODIST CIRCUIT

Number 18/03

Balance Sheet as at 31 August 2022

Notes to the
accounts
Fixed Assets
Circuit Manse and
Properties
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
2022
Total
2021
£
£
£
£
£
£
£
865,000
865,000
150,000
280,000
35,044
26,402
61,446
26,265
865,000
35,044
26,402
926,446
456,265
34,319
34,319
30,832
5,267
4,361
10,281
2,175
22,084
12,824
3,564
5,772
9,336
18.854
10,012
440
10,452
1,915
53,162
4,361
16,493
2,175
76,191
64,425
69,746
69,746
28,832
(16,584)
4,361
16,493
2,175
6,445
35,593
848,416
4,361
51,537
28,577
932,891
491,858
848,416
4,361
51,537
28,577
932,891
491,858
848,416
848,416
453,221
4,361
4,361
4,468
848,416
4,361
852,777
457,689
51,537
51,537
30,834
28,577
28,577
3,335
848,416
4,361
51,537
28,577
932,891
491,858

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Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2022

1 Accounting framework and accounting policies

i Accounting framework

The financial statements have been prepared under the Charities Act 2011 in accordance with the 2019 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) (“the SORP”) 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 2022, 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:

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Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2022

In all 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

All tangible fixed assets costing more than £1,000 are capitalised and included initially at cost, including any incidental expenses of acquisition and irrecoverable VAT.

Subsequently, charitable (functional) land and buildings are held at valuation. The Circuit undertakes to perform the valuations every five years to ensure that the carrying amount does not differ materially from the fair value of the asset at the end of the reporting period. Work to existing properties which is capable of extending the useful life or otherwise adding to the value of the property is capitalised. All other expenditure incurred in respect of general repairs to functional assets is charged to the SOFA in the year it is incurred. No depreciation is provided on the buildings because the trustees consider the current residual fair value of the 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.

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Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2022

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.

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 MCF: Methodist Church Fund MMPS: Methodist Ministers’ Pension Scheme MWIB: Methodist Women in Britain (Liverpool North Central 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 District 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

Page 18 of 32

Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2022

3 Income from Properties

Following the receipt of the County Hub building from May 2022, letting income is received from community and charitable groups using the premises.

General CMTF Desig Restricted Endow Total 2021
Letting Income:
County Hub 3,140 3,140 -
Totals 3,140 -

4 Assessments on Circuits

From May 2022, Oakfield with County Hub ceased to meet for worship and closed with all assets transferred to the Circuit. The Circuit now comprises 2 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 2021
Assessments:
Oakfield with County Hub 5,871 5,871 16,400
Kensington 9,071 9,071 13,428
West Derby 22,036 22,036 22,036
Totals 36,978 36,978 51,864

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.

Oakfield with County Hub made a number of payments prior to closure and transfer of assets. Amounts owed to circuit for payments on its behalf in respect of staff wages are deducted with remainder allocated as assessment income.

Kensington encountered a decline in income both in donations and room lettings due to restrictions resulting from the covid pandemic. As a result, the church was unable to meet its assessment commitments which have been written off as unrecoverable.

5 Grants received

General CMTF Desig Restricted Restricted Endow Total 2021
Intergenerational Ministry
Methodist Church 16,672 16,672 16,228
District Advance Fund 12,504 12,504 12,164
Totals 29,176 29,176 28,392

The grants from Methodist Church and District Advance Fund towards intergenerational ministry are for year three of a three-year grant to support community intergenerational work across the Circuit.

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Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2022

The Circuit has been awarded a District Advance Fund grant to continue to support intergenerational work across the Circuit for 2022/23.

.

6 Capital receipts

From May 2022, Oakfield with County Hub ceased to meet for worship and closed with all assets transferred to the Circuit. Assets included two church properties at Oakfield Road, Anfield, Liverpool and Harlech Street, Walton, unrestricted cash funds and a number of restricted and endowment funds. The church properties are valued based on professional advice received by the trustees.

General CMTF Desig Restricted Restricted Endow Total Total 2021
Oakfield church and house
properties		 250,000 250,000
County Hub property 200,000 200,000

Oakfield sale of chattels,
fixtures and fittings		 2,020 2,020
Oakfield Trust
(Unrestricted)		 1,840 1,840
Oakfield Trusts (Restricted) 19,138 19,138
Oakfield Endowment Trusts 25,415 25,415
Totals 450,000 3,860 19,138 25,415 498,413

7 Donations and legacies

General CMTF Desig Restricted Restricted Endow Total 2021
CFW Projects
Personal and charitable
donations		 60 7,960 8,020 2,970
Totals 60 7,960 7,960 2,970

8 Grants and donations

There were no grants or donations made during the year.

9 Salaries and associated costs

Stipends paid to one full time (2020-21: one) employee were as follows:

Stipends

General General General CMTF Desig Restricted Endow Total Total 2021 2021
Stipends 28,571 28,571 28,241
National Insurance
contributions		 2,941 2,941 2,784
Pension Fund contributions 6,947 6,947 6,915
Totals 38,459 38,459 37,940

Page 20 of 32

Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2022

The Circuit employs three part time, (2020-21: two) lay staff and no part time minister (2020-21 one) as follows:

Salary
National Insurance
contributions
Pension Fund contributions
Totals
Contracted Hours (pw)
Salaries and associated
costs Totals		 General General CMTF Desig Restricted Restricted Endow Total 2021
Salary 1,716 29,894 31,610 34,457
National Insurance
contributions		 1,688 1,688 1,753
Pension Fund contributions 1,798 1,798 1,761
Totals 1,716 33,180 34,896 31,840
10 40
Salaries and associated
costs Totals		 38,459 1,716 33,180 73,355 75,911

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 real living wage as calculated by the Living Wage foundation.

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.

The Connexion accounts for the MMPS pension scheme and shows the figures in the annual Methodist Church in Great Britain accounts. At the last triennial valuation 31 August 2020, the scheme was in deficit by £14m. The Connexion has been negotiating with the Trustee of the Scheme to agree a recovery plan and long-term funding objective for the Scheme. The Recovery Plan consists of core payments of £1.1m per annum for 6 years; conditional payments (dependant on scheme funding position) of up to £3.4m per annum for 6 years, and a further £0.8m per annum to cover the increase in the rate of future accrual. All the amounts are being funded from the Pension Reserve Fund. Further details of this scheme can be found in the Annual Report and Accounts of The Methodist Church at www.methodist.org.uk

On the other hand, lay employees are contractually employees and have the option of joining The Pensions Trust in accordance with Auto-enrolment legislation.

10 Cost of Superintendent and Trustees

The Superintendent of the Circuit 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.

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Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2022

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 seven 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.

Stipends of Ministers
Employer’s National Insurance contributions
Employer’s Pension contributions to a defined
benefit pension scheme		 Total Total 2021 2021
£ £
28,571 28,241
2,941 2,784
6,947 6,915

Total cost		 38,459 37,940

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, the Children and Family worker and the Community and Church Liaison officer 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 (2020-21: £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. The Circuit is responsible for the payment of Council Tax, Utilities, Water charges and Insurance.

Manse costs General General CMTF Desig Restricted Endow Total 2021
Repairs and maintenance
131 Priory Road 961 961 329
25 Eaton Road 2,427 2,427 511
Council Tax 2,234 2,234 1,213
Water Rates 746 746 1,444
Insurance 1,149 1,149 939
Totals 7,517 7,517 4,436

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Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2022

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 2021
Quinquennial on church
properties		 1,450 1,450
Totals 1,450 1,450

From May 2022, Oakfield and County Hub properties became responsibility of the Circuit. There are some residual billing costs included as costs incurred. Oakfield properties are marketed for sale with increased insurance costs due to the buildings being vacant.

Designated property
costs		 General General CMTF Desig Restricted Endow Total 2021
Oakfield Designated
Council Tax 91 91
Water Rates 360 360
Heat and Light 1,386 1,386
Building Insurance 2,969 2,969
Totals 4,806 4,806
County Hub Designated
Repairs and maintenance 500 500
Building Insurance 1,052 1,052
Heat and Light 396 396
Cleaning Supplies 108 108
Totals 2,056 2,056
Property maintenance
Totals		 8,967 6,862 15,829 4,436

12 Office and administration costs

General General CMTF Desig Restricted Restricted Endow Total 2021
PPSA 1,317 476 1,793 1,371
Office expenses 498
Sundries 728 264 992 1,129
Training 210 210
Telephone 532 256 788 451
Travel 2,665 438 3,103 1,733
Safeguarding 63
Legal expenses 908 908 420
3Generate expenses 645 645
Preaching and worship
expenses		 97 97 197
TMCP charges 2 11 81 17 111 71
Totals 5,244 11 1,164 2,211 17 8,647 5,933

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Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2022

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 2021
Methodist Church Fund
(MCF)		 13,352 13,352 13,576
Totals 13,352 13,352 13,576

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 2021
District assessment and
Levy		 1,724 112 1,836 4,200
Totals 1,724 112 1,836 4,200

15 Other charitable activities

General CMTF Desig Restricted Restricted Endow Total 2021
CFW projects running costs 4,410 4,410 3,159
Kensington projects running
costs		 1,398 1,398 806
Totals 5,808 5,808 3,965

16 Investment management

During the year the Circuit paid £111 to TMCP, the custodians of the Circuit’s investments (Circuit Model Trust Fund and various endowment funds (2020-21: £71). The sum of £111 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.

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Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2022

17 Transfers between funds

During the year the following transfers were made:

18 Manse and other property

In accordance with Circuit policy to obtain revised valuations every five years, valuations are revised on all properties in the year.

The property in Eaton Road, Liverpool is determined to be returned to use as a manse and is transferred from investment property.

The properties at Oakfield, Liverpool and County hub, Liverpool were received following the closure of Oakfield church. Both properties are included at valuation.

There is no depreciation on the properties 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 Land Buildings Buildings Buildings Total Total
£ £ £
Cost or valuation 131 Priory Road
Balance b/f at 1 September 30,000 120,000 150,000
Revaluation in year 5,000 10,000 15,000

Balance c/f at 31 August 2022		 35,000 130,000 165,000
Cost or valuation 25 Eaton Road
Transfer from Investment property 70,000 210,000 280,000
Revaluation in year (30,000) (30,000)

Balance c/f at 31 August 2022		 70,000
180,000
250,000
Cost or valuation Oakfield properties
Capital receipt at valuation 100,000 150,000 250,000

Balance c/f at 31 August 2022		 100,000 150,000 250,000
Cost or valuation County hub properties
Capital receipt at valuation 75,000 125,000 200,000

Balance c/f at 31 August 2022		 75,000 125,000 200,000
Totals carried forward at 31 August 2022 280,000 585,000 865,000

Page 25 of 32

Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2022

19 Investment property

The trustees have determined that the property in Eaton Road, Liverpool be returned to use as a manse and will no longer classify the same as an Investment Property.

Land Buildings Total
£ £ £
Cost or valuation
Balance brought forward at 1 September, at
cost		 70,000 210,000 280,000
Transfer to Circuit manse and properties (70,000) (210,000) (280,000)

Balance carried forward at 31 August 2022
-
-
-

20 Debtors and prepayments

Debtors and prepayments
Debtors were made up as follows: 2021-22 2020-21
£ £
Trade debtors
Grant–Liverpool Methodist District 12,504 -
Payroll costs–Oakfield MC - 5,531
Payroll costs–West Derby MC 3,944 2,995
16,448 8,526
Prepayments and accrued income
Payments in advance 17,871 22,306

Unrestricted Prepayments:		 17,871 22,306
Total (net) 34,319 30,832

All sums shown as Debtors at 1 September 2021 were received during the following year. All sums paid in advance at 1 September 2021 were for activities that have been held during 2021-22.

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 accounts at HSBC plc, and one current account and one deposit at CAF Bank, both authorised institutions. The sums held on those accounts are immediately

Page 26 of 32

Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2022

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.

23 Creditors and accrued expenses

Creditors were made up as follows: 2021-22 2021-22 2021-22 2020-21 2020-21 2020-21
£ £
Trade creditors
Connexional Assessment 4,639
Minister’s expenses 5,780 4,221

Total trade creditors		 10,419 4,221
Other creditors
Advance payment 57,488 17,000*

Other creditors		 57,488 17,000
Accruals and deferred income
Assessments received in advance - 4,100
Various accruals 1,839 3,511
Unrestricted Accruals: 1,839 7,611
Total 69,746 28,832
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-21 Paid in year Made in year 31-Aug-22
Trade creditors
Minister’s expenses 4,221 4,221 5,780 5,780
Connexional Assessment 4,639 4,639
Total trade creditors 4,221 4,221 10,419 10,419
Other creditors
Advance payment 17,000* 40,488 57,488

Other creditors		 17,000 40,488 57,488
Accruals and deferred income
Assessments received in advance 4,100 4,100
Various accruals 3,511 3,511 1,839 1,839
Unrestricted Accruals: 7,611 7,611 1,839 1,839
Total 28,832 11,832 52,746 69,746

With the exception of items marked thus (*) all sums shown as Creditors at 1 September 2021 were paid during the following year. It is expected that all sums accrued at 31 August 2022 will be paid during the year to 31 August 2023.

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Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2022

24 Unrestricted Funds

24.1 General Fund – balance £848,416 at 31 August 2022 (2021: £453,221) 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.

During the year the Circuit received by transfer properties at Oakfield and County hub. Income and expenditure relating to these properties is managed through separate designated funds with the net balance being a transfer to the General Fund.

Over 100% of this fund, by valuation, is held as freehold properties.

25 Restricted Funds - balance £51,537 at 31 August 2022 (2021: £30,834)

The Worship and Mission Fund, balance £439 (2021 £326, is used principally to support worship and mission costs in the circuit. Total expenditure in the year was £742. A capital amount, £26,179 at 31 August 2022, is invested to provide income to support the purposes of the fund.

The Kensington Outreach Fund – balance £nil (2021: £16) 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 £1,398. A transfer from general funds of £1,382 was made to this fund.

The Oakfield Mission fund – balance £19,146 (2021: Nil) is the amalgamation of a number of funds received by transfer during the year. Total income in the year was £19,244 being transfer value and investment income and expenditure of £2. A transfer of £96 was made to the Worship and Mission fund.

The Intergenerational Fund – balance £899 (2021: £1,291) 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 with Connexion funding ended in 2022. Further District Advance funding is agreed for 2023.

The CFW Projects – balance £4,874 (2021: £1,324) funds various community activities led by the Children and Family worker. Total income in the year was £7,960 and expenditure was £4,410.

The market valuations for the various funds have been provided by TMCP. The funds of the Intergenerational project are held on deposit at CAF, HSBC and CFB.

Page 28 of 32

Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2022

26 Summary of movements on significant individual funds

Balance at Balance at Balance at Balance at Balance at
Fund 01-Sep-21 Income Expenditure Transfers Gains/
Losses		 31-Aug-22
£ £ £ £ £ £
General Fund 453,221 487,001 (67,746) (9,060) (15,000) 848,416
Circuit Model Trust
Fund		 4,468 20 (123) (4) 4,361
Oakfield Property 3,920 (5,714) 1,794
County Property 3,140 (4,028) 888

Total unrestricted
457,689
494,081
(77,611)		 (6,382) (15,000) 852,777
Worship and Mission 326 (742) 855 439
Mission Capital 27,877 600 (79) (518) (1,701) 26,179
Kensington Projects 16 (1,398) 1,382
Oakfield Mission 19,244 (2) (96) 19,146
Intergenerational
project		 1,291 29,176 (34,568) 5,000 899
CFW Projects 1,324 7,960 (4,410) 4,874

Total restricted		 30,834 56,980
(41,199)		 6,623 (1,701) 51,537
Circuit Account
(Trust 822)		 196 1 (1) 196
Hugh Rowlands
(Trust 280)		 378 3 (2) (1) 378
J Edmondson
Bequest (Trust 867)		 2,331 27 (12) (15) (173) 2,158
Edith Rimmer
Bequest (Trust 5243)		 430 4 (3) (1) 430
H J Stones Bequest
(Trust 3840)		 5,324 (47) 5,277
May Crane Bequest
(Trust (8240)		 20,314 (176) 20,138

Total endowment		 3,335 25,673 (17)
(241)		 (173) 28,577
Total Funds 491,858 576,734 (118,827) (16,874) 932,891

Page 29 of 32

Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2022

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.

Names of Connected Organisations Receipts
£		 Payments
£
Donee: Liverpool Methodist District–District assessment (1,724)
Donee: The Methodist Church Fund – Connexional
assessment		 (13,352)
Donor: Churches within Liverpool North Central Circuit
(assessments on Churches}		 36,978
Donor: Liverpool Methodist District – Grant from District
Advance Fund		 12,504
Donor: The Methodist Church Fund–Connexional grant 16,672

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 (2020-21: nil).

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 (2020-21: Nil). The independent examiner provided no additional services during the year.

Page 30 of 32

Liverpool North Central Methodist Circuit (Number 18/3)

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 Policy Committee.

Signature of treasurer …………David K Smith…………………………Date…5 June 2023…

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 2022 were

presented to the Circuit Meeting at its meeting on 5 June 2023…

Signature of the Chair of the meeting ………Ian Hu…..……………………………………

Name of the Chair of the meeting …… REVD IAN HU … Date 5 June 2023…………………..

Independent Examiner’s Report to the Trustees of the Circuit, named above

The Circuit’s trustees are responsible for ensuring that the annual report and accounts for the year to 31 August 2021 present a true and fair view of the Circuit’s income and expenditure for the year and of its assets and liabilities at the balance sheet date. The 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:

Page 31 of 32

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*)

have not been met, or

Signature of independent examiner……Anthony M Kletz……………………………………..

Name of independent examiner … MR ANTHONY M KLETZ …………………………………

Relevant professional qualification of independent examiner … FCA ………………………….

Address … 17 Gleneagles Drive, Ainsdale, Southport PR8 3PP ……….

Date ……June 2023………………………………….…………………………………

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