OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-08-31-accounts

NORTH LIVERPOOL AND SOUTH SEFTON METHODIST CIRCUIT

(FORMERLY LIVERPOOL NORTH CENTRAL METHODIST CIRCUIT)

TRUSTEES’ ANNUAL REPORT AND ACCOUNTS YEAR ENDED 31 AUGUST 2023

Registered Charity No 1163418

North Liverpool and South Sefton Methodist Circuit (Number 18/03) (Formerly Liverpool North Central Methodist Circuit) Year Ended 31 August 2023

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 eight times during the year. During the year preparatory planning took place for the planned amalgamation of the Circuit with the Liverpool (North) Circuit and Crosby Circuit (excluding Formby Church) from September 2023.

1.1 Mission Statement

The 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:

Page 2 of 36

North Liverpool and South Sefton Methodist Circuit (Number 18/03) (Formerly Liverpool North Central Methodist Circuit) Year Ended 31 August 2023

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

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 fourth 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 project continues 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. This focus includes school holiday provision for local families with school-aged children. Our activities continue to encourage socialisation whilst fostering interpersonal support networks.

The CCLO and CFW discontinued the ‘Arts and Hearts’ group in May 2022 when similar resources became available elsewhere within the community. They continued to look for other ways to respond to adults in need of support throughout the community through an ongoing process of observation, conversation and discernment. This process continued during the year.

The Community Intergenerational Project successfully applied for a Liverpool District ‘Warm Spaces Grant’ during this year. County Methodist Hub was opened to the community once a week for 13 sessions, providing a warm space and lunch free of charge. This proved to be a welcome feature and served a total of 75 lunches over 13 sessions. This new feature received positive feedback, including one resident commenting that it helped her general wellbeing and has since developed an increased confidence for her to attend other events at County Methodist Hub on her own.

Other ongoing and continuing activities include the following:

Page 3 of 36

North Liverpool and South Sefton Methodist Circuit (Number 18/03) (Formerly Liverpool North Central Methodist Circuit) Year Ended 31 August 2023

food provision, craft activities, family-oriented films and seasonally themed parties and activities. Periodically, parents have been provided with food parcels as available. Families have continued to express their gratitude for this provision as the entire ‘Rise and Shine’ project has assisted them with coping with their children during school holidays and the ongoing cost of living pressures. Overall, during the year ending 31 August 2023, a total of 70 children from 36 families benefitted from this project.

The project’s vision and community action continue to be well received and actively recognised through continued financial support by Liverpool Methodist District during the year.

Page 4 of 36

North Liverpool and South Sefton Methodist Circuit (Number 18/03) (Formerly Liverpool North Central Methodist Circuit) Year Ended 31 August 2023

2.2 Circuit Churches and Pastoral Care

Following the closure and cessation of worship, 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 enabled ongoing pastoral contact and support. This activity has developed to include a wider network of attendees from both the community and other Circuit churches. The CCLO takes an active role in assisting with preparation for these events.

‘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 continues to grow slowly in size and attracts regular worshippers primarily from the local Walton community.

The work at Kensington and West Derby Methodist Churches continues with some new members added at both churches.

West Derby Church is being supported in its building redevelopment plans particularly as it carries out a feasibility review.

Following the loss of tenants and some members Kensington Methodist Church has carried out a detailed financial review with Circuit support to establish a more secure financial footing.

2.3 Plans for future years

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

In this regard, the Circuit will amalgamate with the Liverpool (North) Circuit and Crosby Circuit (excluding Formby Church) from September 2023.

The sale of the Oakfield building in Summer 2023 released cash funds for operations. The trustees committed to continue to fund Community Intergenerational Project for a further two years.

The circuit remains 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 and to support the work 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.

Page 5 of 36

North Liverpool and South Sefton Methodist Circuit (Number 18/03) (Formerly Liverpool North Central Methodist Circuit) Year Ended 31 August 2023

3 FINANCIAL REVIEW

During the year the Circuit received total income of £115k (2021-22: £577k) and dispersed £339k (2021-22 £119k). The resulting deficit of income was reduced by a net gain of £197k (2021-22: loss of £17k) on the properties, restricted reserves and endowments to produce a net deficit of income of £27k (2021-22: excess of £441k) and total reserves carried forward of £906k (2021-22: £933k).

During the year the sale was completed of the properties of Oakfield church and house at a price above the balance sheet valuation. In accordance with Methodist discipline a levy was transferred to the Connexional Property Fund and surplus funds were invested in the Circuit Model Trust Fund.

The usual main source of funding from assessments was badly affected by Oakfield’s decision to close and Kensington’s ongoing financial difficulties. Following a detailed review of Kensington’s financial situation revised assessments were set and a Reserve Fund grant approved. The assessments received in the year amounted to £33,250 (202122: £36,978).

Grants received are from 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.

During the year, the Circuit faced severe liquidity and cash flow difficulties due to the delay in sale of the Oakfield properties. A number of private donations were received for general use to sustain and support Circuit ministry and mission.

Other donations to designated funds include monies received for the ongoing work at County Hub and a gift aid recovery for the Oakfield premises and charitable and individual contributions towards project activities of the Community Intergenerational project.

During the year the Circuit teamed with neighbouring Circuits to share Superintendency. One third of Superintendent’s Stipend costs was paid by Liverpool (North) Circuit.

The unrestricted general account shows costs in line with budget. 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.

29% 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 the professional costs and connexional levy on property sale, the general account had a deficit of £15k (2021-22: deficit £40k). 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 investment and property reserves.

Page 6 of 36

North Liverpool and South Sefton Methodist Circuit (Number 18/03) (Formerly Liverpool North Central Methodist Circuit) Year Ended 31 August 2023

The Circuit holds three freehold properties being the Manses in Priory Road and Eaton Road, Liverpool and also the church property at County Hub. The sale of the Oakfield church was completed in August 2023. The Circuit has agreed to sell the Eaton Road property to fund future work.

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.

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.

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 664,050 Circuit Model Trust Fund 152,965 County Property Fund 20,000 Total unrestricted funds 837,015

Page 7 of 36

North Liverpool and South Sefton Methodist Circuit (Number 18/03) (Formerly Liverpool North Central Methodist Circuit) Year Ended 31 August 2023

Restricted funds
Worship and Mission

Mission Capital

Oakfield Mission
Kensington Outreach

Intergenerational Mission
CIP Projects
Total restricted funds

Total endowment funds
Total funds

Available Reserves
Total unrestricted funds
_Less:_invested in properties

Committed Funds
CIP Project 2023/24 and 2024/25
CMTF Grant to West Derby Methodist Church		 (801)
24,914
12,938
-
391
4,714
42,156
26,996
906,167
837,015
(615,000)
222,015
120,000
35,000
155,000

Uncommitted reserves, readily available 67,015

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:

three months’ payroll costs and closing costs of staff redundancies - £18k • three months administration and staff expense costs - £ 3k • manse repair reserve - £20k • County Hub repair reserve - £20k • three months connexional and district assessment - £ 4k

At 31 August 2023 this sum amounted to £65k against actual readily available reserves of £67k as stated above. Actual readily available reserves are consistent with policy at the year-end.

In addition, the trustees have agreed the sale of one manse property which should realise funds in excess of £100k.

Page 8 of 36

North Liverpool and South Sefton Methodist Circuit (Number 18/03) (Formerly Liverpool North Central Methodist Circuit) Year Ended 31 August 2023

3.3 Plans for 2023/24

From September 2023 the Circuit will amalgamate to become a larger body.

A budget has been set with financial plans for the amalgamated Circuit to be the continuation and support of existing ministry and mission work of each of the Circuits whilst a review and analysis of priorities and policy takes place.

The amalgamated Circuit will hold relatively substantial cash, investments and property reserves. Given the level of reserves, it is anticipated that general account deficits will be supported for many years.

As from September 2023 an unchanged level of assessments has been requested from the circuit churches.

Page 9 of 36

North Liverpool and South Sefton Methodist Circuit (Number 18/03) (Formerly Liverpool North Central Methodist Circuit) Year Ended 31 August 2023

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:

Page 10 of 36

North Liverpool and South Sefton Methodist Circuit (Number 18/03) (Formerly Liverpool North Central Methodist Circuit) Year Ended 31 August 2023

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.

Page 11 of 36

North Liverpool and South Sefton Methodist Circuit (Number 18/03) (Formerly Liverpool North Central Methodist Circuit) Year Ended 31 August 2023

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:

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 Tavistock Place London WC1H 9SF 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.

Page 12 of 36

North Liverpool and South Sefton Methodist Circuit (Number 18/03) (Formerly Liverpool North Central Methodist Circuit) Year Ended 31 August 2023

6 REFERENCE AND ADMINISTRATION DETAILS

6.1 Charity Name

North Liverpool and South Sefton Methodist Circuit (Formerly Liverpool North Central Methodist Circuit. The charity was re-named North Liverpool and South Sefton Methodist Circuit on 1 September 2023 following amalgamation with Liverpool (North) Methodist Circuit and Crosby Methodist Circuit (excluding Formby Methodist Church.)

6.2 Charity Registration Number

1163418, registered in England and Wales

6.3 Principal Office

The principal office throughout the year 2022-23 was: c/o County Methodist Hub Harlech Street Liverpool L4 3RJ E-mail finance@nlss.org.uk Web Site www.nlss.org.uk

6.4 Superintendent Minister

The Revd Ian Hu

6.5 Secretary of the Circuit Meeting

The following served as Secretary during the year 2022-23 Mrs Ruth Stirrup

6.6 Circuit Stewards

The following served as Circuit Stewards throughout the year 2022-23 Mr David K Smith (Finance)

6.7 Circuit Property Team

The following served as members of the Circuit Property team throughout the year 2022-23 Mr Stephen Twist (Property)

Mr David Williamson (Property)

6.8 Circuit Minister

There were no other ministers who served in the Circuit during 2022-23

6.9 Names of trustees

The following served as trustees throughout part or all of the year 2022-23 or were trustees at the time of this report being approved: The Revd Ian Hu Mr Brian Kiel Ms Joan Lewis Mrs Patricia McGinty until August 2023 Ms Lorraine Oram Mr David K Smith Mrs Ruth Stirrup until August 2023 Mrs Jill Stubbs Mrs Alison Twist until August 2023

Page 13 of 36

North Liverpool and South Sefton Methodist Circuit (Number 18/03) (Formerly Liverpool North Central Methodist Circuit) Year Ended 31 August 2023

Mr Stephen Twist Mr David Williamson Mrs Jean Barnes from September 2023 Mr Tom Battersby from September 2023 Revd Susan Edwards from September 2023 Mr David Evans from September 2023 Mrs Norma Evans from September 2023 Mrs Valerie Gee from September 2023 Mr Stephen Gent from September 2023 Mrs Hilary Henshall from September 2023 Mr David Hird from September 2023 Revd Helen Kirkup from September 2023 Mrs Edna Korman from September 2023 Mrs Margaret Langton from September 2023 Mr Alan Lewis from September 2023 Mrs Viv Marriott from March 2024 Ms Angela McAvoy from September 2023 Mrs Hilary Ness from September 2023 Mr Sachin Patil from September 2023 Mr Ian Roxburgh from September 2023 Mrs Anne Roxburgh from September 2023 Mrs Liz Shaw from September 2023 Mr Richard Stevens from September 2023 Revd Neil Stubbens from September 2023 Mr Joseph Thomas from September 2023 Mrs Wendy Thomas from September 2023 Ms Lynette Thompson from September 2023

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

6.12 Circuit Lay Worker

There were no other lay workers who served in the Circuit during 2022-23

6.13 Bankers

CAF Bank Ltd Central Finance Board of the Methodist Church 25 Kings Hill Avenue 9 Bonhill Street West Malling London ME19 4JQ EC2A 4PE HSBC plc 99 – 101 Lord Street LIVERPOOL L2 6PG

Page 14 of 36

North Liverpool and South Sefton Methodist Circuit (Number 18/03) (Formerly Liverpool North Central Methodist Circuit) Year Ended 31 August 2023

6.14 Investment managers and custodian trustees

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

6.15 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 3 September 2024.

Signed on behalf of the Circuit Meeting, as authorised:

Ian Hu (signed) David K Smith (signed)

Rev Ian Hu David K Smith Superintendent Date: 3 September 2024 Circuit Treasurer Date: 3 September 2024

Page 15 of 36

LIVERPOOL NORTH CENTRAL METHODIST CIRCUIT Statement of Financial Activities (SOFA) for the year ended 31 August 2023

Number 18/03

Notes to the accounts General Fund
(Unrestricted)
£		 Circuit Model Trust Fund
£		 (Unrestricted)
 Designated Funds
£		 (Unrestricted)
 Restricted
Funds
£		 Endowment
Funds
£		 Endowment
Funds
£		 Totals
2022-23
£
Totals
2021-22
£
Income and Endowments
Donations and legacies 7 32,000 4,358 4,318 40,676 8,020
Income from monetary
investments 223 288 1,314 949 2,774 1,007
Income from properties 3 7,045 7,045 3,140
Assessments on Churches 4 33,250 33,250 36,978
Capital Receipts 6 498,413
Grants received 5 29,905 29,905 29,176
Other charitable activities 1,000 1,000
Total from charitable
activities 65,473 288 12,403 35,537 949 114,650 576,734
Other income
Total income and
endowments 65,473 288 12,403 35,537 949 114,650 576,734
Expenditure
Grants and donations 8 35,000 35,000
Salaries and assoc. costs 9 26,754 5,538 35,780 68,072 73,355
Property maintenance 11 9,419 24,915 34,334 15,829
Connexional assess & Levy 13 163,150 163,150 13,352
District assessment & Levy 14 4,643 109 4,752 1,836
Capital Payments 16 5,836 430 6,266
Office & admin costs 12 18,553 13 779 1,307 91 20,743 8,002
Other charitable activities 15 6,281 6,281 6,453
Total charitable
expenditure 222,519 35,122 31,232 49,204 521 338,598 118,827
(Losses) on monetary
investments (1,625) (1,151) (2,776) (1,874)
Gains/(losses) on
properties 200,000 200,000 (15,000)
Net income/(expenditure) 42,954 (34,834) (18,829) (15,292) (723) (26,724) 441,033
Transfers between funds 18 (227,320) 183,438 38,829 5,911 (858)
Net movement in funds (184,366) 148,604 20,000 (9,381) (1,581) (26,724) 441,033
Reconciliation of funds:
Total funds brought forward 848,416 4,361 51,537 28,577 932,891 491,858
Total funds carried
forward 664,050 152,965 20,000 42,156 26,996 906,167 932,891

Page 16 of 36

LIVERPOOL NORTH CENTRAL METHODIST CIRCUIT

Number 18/03

Balance Sheet as at 31 August 2023

Notes to the accounts General Fund
(Unrestricted)		 Circuit Model Trust Fund (Unrestricted) Designated Funds (Unrestricted) Restricted Funds Endowment Funds Total
2023		 Total
2022
£ £ £ £ £ £ £
Fixed Assets
Circuit Manse and
Properties 19 615,000 615,000 865,000
Investment property
Investments 27,814 25,251 53,065 61,446
Total fixed assets 615,000 27,814 25,251 668,065 926,446
Current Assets
Debtors 20 21,110 20,000 41,110 34,319
Investments with TMCP 21 5,440 207,965 10,040 1,745 225,190 22,084
Central Finance Board 22
Deposits 24,161 4,302 28,463 9,336
Cash at Bank and in hand 14,457 14,457 10,452
Total current assets 65,168 207,965 20,000
14,342		 1,745 309,220 76,191
Current liabilities
Creditors (due in under 1 23
year) 16,118 55,000 71,118 69,746
Net current
assets/liabilities 49,050 152,965 20,000
14,342		 1,745 238,102 6,445
Total assets less current
liabilities 664,050 152,965 20,000
42,156		 26,996 906,167 932,891
Net assets 664,050 152,965 20,000
42,156		 26,996 906,167 932,891
Funds of the Circuit
General Fund (Unrestricted) 664,050 664,050 848,416
Circuit Model Trust Fund
(Unrestricted) 152,965 152,965 4,361
Designated Funds
(Unrestricted) 20,000 20,000
Total Unrestricted Funds 664,050 152,965 20,000 837,015 852,777
Restricted Funds 42,156 42,156 51,537
Endowment Funds 26,996 26,996 28,577
Total Funds 664,050 152,965 20,000
42,156		 26,996 906,167 932,891

Page 17 of 36

Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2023

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 North Liverpool and South Sefton Methodist Circuit (Formerly 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 2023, 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 the following matters:

Page 18 of 36

Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2023

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.

Page 19 of 36

Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2023

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 20 of 36

Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2023

3 Income from Properties

Letting income is received from community and charitable groups using the County Hub premises.

General CMTF Desig Restricted Endow Total 2022
Letting Income:
County Hub 7,045 7,045 3,140
Totals 7,045 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 2022
Assessments:
Oakfield with County Hub 5,871 5,871
Kensington 11,214 11,214 9,071
West Derby 22,036 22,036 22,036
Totals 33,250 33,250 36,978

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.

Following a detailed review of Kensington’s financial situation, the assessment was adjusted to an agreed and affordable level of £2,500 per quarter.

5 Grants received

General CMTF Desig Restricted Restricted Endow Total 2022
Intergenerational Ministry
Methodist Church 16,672
District Advance Fund 29,905 29,905 12,504
Totals 29,905 29,905 29,176

The District Advance Fund grant continued to support intergenerational work across the Circuit for 2022/23 following the completion of a three-year grant to support community intergenerational work across the Circuit from Methodist Church and District Advance Fund.

There is no grant funding approved for 2023/24.

Page 21 of 36

Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2023

6 Capital receipts

In 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 were valued based on professional advice received by the trustees.

General CMTF Desig Restricted Endow Total 2022 2022
Oakfield church and house
properties		 250,000
County Hub property 200,000

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

7 Donations and legacies

General CMTF Desig Restricted Restricted Endow Total 2022
Donations:
Personal and charitable
donations
32,000		 4,358 4,318 40,676 8,020
Totals 4,358 4,318 40,676 8,020

During the year, the Circuit faced severe liquidity and cash flow difficulties due to the delay in sale of the Oakfield properties. A number of private donations were received for general use to support Circuit ministry and mission.

Donations to designated funds include monies received for the ongoing work at County Hub and a gift aid recovery for the Oakfield premises.

Restricted fund donations include various private and charitable contributions towards project activities of the Intergenerational project.

8 Grants and donations

General CMTF Desig Restrtd Endow Total 2022
CMTF Grants
Kensington Reserve 10,000 10,000
West Derby Redevelopment 5,000 5,000
Kensington Kitchen Fund 20,000 20,000
County Hub Kitchen Fund 20,000 (20,000)
Totals 55,000 (20,000) 35,000

Page 22 of 36

Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2023

Following the completion of sale of Oakfield properties funds were transferred to CMTF.

In accordance with Circuit grant procedures a number of grant applications were received and approved.

The grant awards of £20,000 to Kensington and to County Hub (designated fund) were to meet project costs only with any excess funds to be returned.

The grant award to West Derby Redevelopment was to cover initial feasibility costs in respect of architect and fundraising consultancy fees. (A further grant was approved subject to the positive outcome of the feasibility process. This grant is disclosed under contingent liabilities.

9 Salaries and associated costs

During the year the Circuit teamed with neighbouring Circuits to share Superintendency. One third of Superintendent’s Stipend costs was paid by Liverpool (North) Circuit. (202122: one full time Superintendent.) Stipends paid were as follows:

Stipends

General General General CMTF Desig Restricted Endow Total Total 2022 2022
Stipends 19,862 19,862 28,571
National Insurance
contributions		 2,063 2,063 2,941
Pension Fund contributions 4,829 4,829 6,947
Totals 26,754 26,754 38,459

The Circuit employs three part time, (2021-22: three) lay staff 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 2022
Salary 5,538 31,954 37,492 31,610
National Insurance
contributions		 1,926 1,926 1,688
Pension Fund contributions 1,900 1,900 1,798
Totals 5,538 35,780 41,318 34,896
10 40
Salaries and associated
costs Totals		 26,754 5,538 35,780 68,072 73,355

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

Stipendiary Circuit Ministers are eligible to join the Methodist Ministers’ Pension Scheme (MMPS). The MMPS is a funded defined benefit scheme maintained by The Methodist Church of Great Britain. As the Circuit is unable to identify its share of the underlying assets and liabilities of the scheme, the Circuit has taken the advantage of the exemption in Financial Reporting Standard (FRS) 17, Retirement Benefits, and has accounted its

Page 23 of 36

Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2023

contributions to the scheme as if it were a defined contribution scheme. The pension costs for the scheme represent the contribution payable by the Circuit in the year. The contribution rates are set each year by the Methodist Conference.

Lay employees are contractually employees and may be required to be auto enrolled in the Circuit’s Pensions Trust Auto Enrolment pension scheme which is a defined benefit scheme and the Circuit contribute as an employer to this scheme.

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.

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 2022 2022
£ £
19,862 28,571
2,063 2,941
4,829 6,947

Total cost		 26,754 38,459

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 (2021-22: £nil) were paid to other trustees.

Page 24 of 36

Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2023

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 2022
Repairs and maintenance
131 Priory Road 437 437 961
25 Eaton Road 703 703 2,427
Council Tax 3,448 3,448 2,234
Water Rates 1,091 1,091 746
Insurance 860 860 1,149
Totals 6,539 6,539 7,517

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 2022
Quinquennial on church
properties		 2,880 2,880 1,450
Totals 2,880 2,880 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 were marketed for sale with completion in August 2023. Increased insurance costs were due to the buildings being vacant.

Designated property
costs		 General General CMTF Desig Restricted Endow Total 2022
Oakfield Designated
Council Tax 91
Water Rates 1,124 1,124 360
Heat and Light 660 660 1,386
Repairs and clearance 3,206 3,206
Building Insurance 5,982 5,982 2,969
Totals 10,972 10,972 4,806
County Hub Designated
Repairs and maintenance 5,170 5,170 500
Building Insurance 4,147 4,147 1,052
Heat and Light 3,622 3,622 396
Water Rates 1,004 1,004
Cleaning Supplies - - 108
Totals 13,943 13,943 2,056
Property maintenance
Totals		 9,419 24,915 34,334

Page 25 of 36

Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2023

12 Office and administration costs

General General CMTF Desig Restricted Restricted Endow Total 2022
PPSA, IT and equipment 2,852 277 374 3,503 1,793
Sundries 878 878 992
Training 210
Telephone 1,767 502 2,269 788
Travel 2,862 257 3,119 3,103
Safeguarding
Legal, survey and
professional expenses		 10,189 10,189 908
Preaching and worship
expenses		 548 548 97
TMCP charges 5 13 128 91 237 111
Totals 18,553 13 779 1,307 91 20,743 8,002

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.

Under Methodist Standing Order 970, the Connexional Priority Fund (“CPF”) levy is charged on the proceeds from the disposition of virtually all Methodist Model Trust Property. (A proportion of the CPF levy may be reclaimed and used to fund a qualifying Replacement Project.) This levy was charged following the disposal of Oakfield Church. There is no provision for any reclaim included in these accounts.

General General CMTF Desig Restrtd Endow Total 2022
Methodist Church Fund
(MCF)		 14,005 14,005 13,352
Connexional Priority Fund
(“CPF”) levy
Sale of Oakfield Church 149,145 149,145
Connexional assessment
and levy Totals		 163,150 163,150 13,352

Page 26 of 36

Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2023

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 2022
District assessment and
Levy		 4,643 109 4,752 1,836
Totals 4,643 109 4,752 1,836

15 Other charitable activities

General CMTF Desig Restricted Restricted Endow Total 2022
CFW projects running costs 2,679 2,679 4,410
3Generate expenses 2,750 2,750 645
Kensington projects running
costs		 852 852 1,398
Totals 6,281 6,281 6,453

16 Capital Payments

A detailed review of model trust funds and permanent endowments has been carried out to understand charitable purposes with support from TMCP, Liverpool District and Charity Commission.

Following review, it was determined to transfer two model trust funds to West Derby Methodist Church and one Permanent endowment to Kensington Methodist Church as best means to ensure charitable benefit is best applied.

17

Investment management

During the year the Circuit paid £237 to TMCP, the custodians of the Circuit’s investments (Circuit Model Trust Fund and various endowment funds (2021-22: £111). The sum of £237 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.

18 Transfers between funds

During the year the following transfers were made:

Page 27 of 36

Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2023

19 Manse and other property

In accordance with Circuit policy to obtain revised valuations every five years, valuations remain unaltered following revision on all properties in 2022.

The property in Eaton Road, Liverpool is no longer required as a manse and is currently for sale.

The properties at Oakfield, Liverpool were sold during the year.

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 Total
£ £ £
Cost or valuation 131 Priory Road
Balance b/f at 1 September 35,000 130,000 165,000
Revaluation in year - - -

Balance c/f at 31 August 2023		 35,000 130,000 165,000
Cost or valuation 25 Eaton Road
Balance b/f at 1 September 70,000 180,000 250,000
Revaluation in year - - -

Balance c/f at 31 August 2023		 70,000 180,000 250,000
Cost or valuation Oakfield properties
Balance b/f at 1 September 100,000 150,000 250,000
Revaluation on disposal 40,000 160,000 200,000

Sold in year		 (140,000) (310,000) (450,000)

Balance c/f at 31 August 2023
-
-
-
Cost or valuation County hub properties
Balance b/f at 1 September 75,000 125,000 200,000
Revaluation in year - - -

Balance c/f at 31 August 2023		 75,000 125,000 200,000
Totals carried forward at 31 August 2023 180,000 435,000 615,000

Page 28 of 36

Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2023

20 Debtors and prepayments

Debtors and prepayments
Debtors were made up as follows: 2022-23 2021-22
£ £
General Fund:
Trade debtors
Grant–Liverpool Methodist District - 12,504
Stipend costs–Liverpool (North) Circuit 13,371 -
Payroll costs–West Derby MC 1,450 3,944
14,821 16,448
Prepayments and accrued income
Payments in advance 6,289 17,871

Unrestricted Prepayments:		 6,289 17,871
Total General Fund 21,110 34,319
Designated Fund: County Hub
Other debtors
Approved grant award from CMTF 20,000 -

Other debtors		 20,000 -
Total 41,110 34,319

All sums shown as Debtors at 1 September 2022 were received during the following year. All sums paid in advance at 1 September 2022 were for activities that have been held during 2022-23.

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 available.

Following the transfer of assets from Oakfield Methodist Church in 2022 the Circuit has operated two “legacy” accounts at HSBC plc. These accounts were closed in September 2023.

Page 29 of 36

Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2023

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: 2022-23 2022-23 2022-23 2021-22 2021-22 2021-22
£ £
General Fund:
Trade creditors
Connexional Assessment 9,324 4,639
Minister’s expenses 781 5,780

Total trade creditors		 10,105 10,419
Other creditors
Advance payment 2,400 57,488

Other creditors		 2,400 57,488
Accruals and deferred income
Various accruals 3,613 1,839
Unrestricted Accruals: 3,613 1,839
Total General Fund 16,118 69,746
Circuit Model Trust Fund:
Other creditors
Approved grant awards 55,000 -

Other creditors		 55,000 -
Total 71,118 69,746
Maturity analysis of financial liabilities Maturity analysis of financial liabilities
Accrued at Accrual
Maturity analysis of financial liabilities
Accrued at Accrual Accrued at
01-Sep-22 Paid in year Made in year 31-Aug-23
Trade creditors
Minister’s expenses 5,780 5,780 781 781
Connexional Assessment 4,639 4,639 9,324 9,324
Total trade creditors 10,419 10,419 10,105 10,105
Other creditors
Advance payment 57,488 57,488 2,400 2,400

Other creditors		 57,488 57,488 2,400 2,400
Accruals and deferred income
Various accruals 1,839 1,839 3,613 3,613
Unrestricted Accruals: 1,839 1,839 3,613 3,613
Total 69,746 69,746 16,118 16,118

Page 30 of 36

Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2023

With the exception of items marked thus (*) all sums shown as Creditors at 1 September 2022 were paid during the following year. It is expected that all sums accrued at 31 August 2023 will be paid during the year to 31 August 2024.

24 Unrestricted Funds

24.1 General Fund – balance £664,050 at 31 August 2023 (2022: £848,416)

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 completed disposal of the properties at Oakfield, Liverpool with significant gain on disposal, payment of Connexional levy in accordance with Methodist discipline and transfer of excess funds to the Circuit Model Trust Investment Fund.

Income and expenditure relating to properties is managed through separate designated funds with deficits funded by transfer from the General Fund.

At the end of year 92% of this fund, by valuation, is held as freehold properties.

24.2 Circuit Model Trust Fund – balance £152,965 at 31 August 2023 (2022: £4,361) This unrestricted fund is for use at the discretion of trustees in the furtherance of the general objectives of the Circuit.

Funds were received from investment by transfer from the General Fund, following sale of the Oakfield properties.

Grants were awarded to church property projects in the year.

The trustees have committed £120,000 to the work of the Community Intergenerational Project until August 2025.

The trustees have approved a grant of £35,000 to the West Derby redevelopment project subject to the project being fully funded.

24.3 Oakfield Property Fund – balance £nil at 31 August 2023 (2022: £nil) This fund is closed following sale of the properties in August 2023. Costs include maintenance and costs relating to disposal whilst the properties were being marketed.

24.4 County Property Fund – balance £20,000 at 31 August 2023 (2022: £nil) This fund includes income and expenditure relating to the use of the premises at County Hub which serves as a primary base for the work of the Community Intergenerational project.

Transfers are received from General Fund to cover the net costs.

A balance of £20,000 is held being committed funds for a Kitchen refurbishment, completed in November 2023.

Page 31 of 36

Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2023

25 Restricted Funds - balance £42,156 at 31 August 2023 (2022: £51,537)

The Worship and Mission Fund, balance (£801) (2022 £439, is used principally to support worship and mission costs in the circuit. Total expenditure in the year was £3,298. A capital amount, £24,914 at 31 August 2023, is invested to provide income to support the purposes of the fund.

The Kensington Outreach Fund – balance £nil (2022: £nil) provides funds for the circuit projects at Kensington Methodist church including the community food bank. Total income in the year was £nil and expenditure was £852. A transfer from general funds of £852 was made to this fund.

The Oakfield Mission fund – balance £12,938 (2022: £19,146) is the amalgamation of a number of funds received by transfer on the closure of Oakfield church. Total income in the year was £549 being investment income and expenditure of £54. A transfer of £503 was made to the Worship and Mission fund. Following review with TMCP (see Note 16) two funds were transferred to West Derby Methodist Church.

The Intergenerational Fund – balance £391 (2022: £899) is a project to support Community Intergenerational work across the Circuit initially supported by Methodist Church connexion and the District Advance Fund. This project commenced in August 2019 with Connexion funding ended in 2022 but matched by District Advance funding for 2023. The trustees have committed to use reserves for this project until August 2025.

The CIP Projects – balance £4,714 (2022: £4,874) funds various community and intergenerational activities of the Community Intergenerational project. This fund is a catchall for various activities with specific restrictions relating to some donations. Strict compliance is ensured by the management of the children and family worker in association with the treasurer. Total income in the year was £4,318 and expenditure was £2,678 with transfers out of £1,800.

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 32 of 36

Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2023

26 Summary of movements on significant individual funds

Balance at Balance at Balance at Balance at Balance at Balance at
Fund 01-Sep-22 Income Expenditure Transfers Gains/
Losses		 31-Aug-23
£ £ £ £ £ £
General Fund 848,416 65,473 (222,519) (227,320) 200,000 664,050
Circuit Model Trust
Fund		 4,361 288 (35,122) 183,438 152,965
Oakfield Property 3,058 (10,973) 7,915
County Property 9,345 (20,259) 30,914 20,000

Total unrestricted
852,777		 78,164
(288,873)		 (5,053) 200,000 837,015
Worship and Mission 439 (3,298) 2,058 (801)
Mission Capital 26,179 765 (303) (696) (1,031) 24,914
Kensington Projects (852) 852
Oakfield Mission 19,146 549 (5,660) (503) (594) 12,938
Intergenerational
project		 899 29,905 (36,413) 6,000 391
CIP Projects 4,874 4,318 (2,678) (1,800) 4,714

Total restricted		 51,537 35,537
(49,204)
5,911		 (1,625) 42,156
Circuit Account
(Trust 822)		 196 6 (6) 196
Hugh Rowlands
(Trust 280)		 378 24 (2) (22) 378
J Edmondson
Bequest (Trust 867)		 2,158 140 (14) (127) (71) 2,086
Edith Rimmer
Bequest (Trust 5243)		 430 28 (432) (26) -
H J Stones Bequest
(Trust 3840)		 5,277 156 (15) (141) (224) 5,053
May Crane Bequest
(Trust (8240)		 20,138 595 (58) (536) (856) 19,283

Total endowment		 28,577 949
(521)
(858)
(1,151)		 26,996
Total Funds 932,891 114,650 (338,598) 197,224 906,167

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.

Page 33 of 36

Liverpool North Central Methodist Circuit (Number 18/03) Notes to the Accounts For The Year Ended 31 August 2023

Names of Connected Organisations Receipts
£		 Payments
£
Donee: Liverpool Methodist District–District assessment (4,752)
Donee: The Methodist Church Fund – Connexional
assessment		 (14,005)
Donee: The Methodist Church Fund – Connexional priority
levy		 (149,145)
Donee: Kensington Methodist Church CMTF Grants (30,000)
Donee: West Derby Methodist Church CMTF Grant (5,000)
Donor: Churches within Former Liverpool North Central
Circuit (assessments on Churches}		 33,250
Donor: Liverpool Methodist District – Grant from District
Advance Fund		 29,905

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

The Circuit trustees have a committed an amount of £120,000 from the Circuit Model trust fund to extend the work of the Community Intergenerational project until at least August 2025. It is proposed that a further review of progress be carried out in early 2024/25. (2021-22: nil).

A further grant of £35,000 has been awarded to West Derby Methodist Church towards the costs of redevelopment to the main church building. The grant to be paid only on the project being fully funded through other grants and donations.

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 (2021-22: Nil). The independent examiner provided no additional services during the year.

Page 34 of 36

Liverpool North Central Methodist Circuit (Number 18/3)

Declarations and Scrutiny

I confirm that these accruals-based accounts for the year to 31 August 2023 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…20 August 2024

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 2023 were

presented to the Circuit Meeting at its meeting on 3 September 2024…

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

Name of the Chair of the meeting …… REVD IAN HU … Date 3 September 2024…………………..

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 2023 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 35 of 36

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 ……September 2024………………………………….…………………………………

Page 36 of 36