**REGISTERED CHARITY NUMBER 1194708**
## **Report of the Trustees and**
**Financial Statements for the Year ended 31 August 2022**
**for**
**Oldham Methodist Circuit**
**Oldham Methodist Circuit**
## **CONTENTS OF THE FINANCIAL STATEMENTS For the Year Ended 31[st] August 2022**
**Page** Report of the Trustees 1 - 7 Statement of Financial Activities 8 Balance Sheet 9 Cash Flow Statement 10 Notes to the Financial Statements 11 - 18 Independent Examiner’s Report 19
**Oldham Methodist Circuit Report of the Trustees for the Year Ended 31 August 2022**
The trustees present their report with the financial statements of the charity for the year ended 31 August 2022. The trustees have adopted the provisions of the Charities Act 2011 and the Charities ‘Statement of Recommended Practice (SORP) 2015 ' in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
## **REFERENCE AND ADMINISTRATION DETAILS Registered Charity number 1194708**
## **Principal address**
2 The Avenue Shaw Oldham OL2 7HE
## **Trustees**
The members of the Circuit Meeting are the Charity Trustees. A full list of trustees is included Appendix A of the trustees report.
## **Solicitor**
North Ainley Halliwell 34/36 Clegg Street Oldham OL1 1PS
## **Independent Examiner**
Leanne Nield ACA BSc Arc Accountancy Solutions Limited 51 Laverton Road Lytham St. Annes Lancashire FY8 1EN
## **Advisers**
The charity's investment managers are TMCP, Central Buildings, Oldham Street, Manchester M1 1JQ.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
The Oldham Methodist Circuit is part of the Methodist Church of Great Britain.
**Type of Governing Document:** Deed of Union (1932) and Methodist Church Act (1976) **How the Charity is Constituted:** Act of Parliament
The Charity's Trustees are the members of the Oldham Methodist Circuit meeting. Membership is made up of ministers appointed to the circuit, circuit office holders, representatives appointed by the local churches and representatives appointed by the Local Preachers’ Meeting. Full membership is shown in Appendix A to this report.
The Trustees for Methodist Church Purposes are the Custodian Trustees of Circuit properties.
1
## **Oldham Methodist Circuit Report of the Trustees for the Year Ended 31 August 2022**
## **ORGANISATION OF OLDHAM METHODIST CIRCUIT**
The Oldham and Saddleworth Circuit and the Shaw and Royton Circuits came together in September 2021 to create the new Oldham Circuit - the Oldham and Saddleworth and Shaw and Royton Circuits therefore ceased to exist as separate entities at the end of 2020-21.
The Oldham Circuit provides ministerial oversight and pastoral care for the fourteen churches in the Oldham area.
Circuit Meetings (trustees’ meetings) are held three times per year. The Circuit Leadership Team (the circuit's ministers and circuit stewards) meets at least six times per year and has limited powers to transact business on behalf of the trustees between trustees’ meetings, The Circuit Superintendent, if present, chairs meetings of these groups. In the absence of the Superintendent, one of the other ministers takes on the role of Chair.
Sub-committees responsible to the trustees, including both representatives of the trustees and others with appropriate skills and experience, have been established for a number of routine purposes and for day-to-day management of the Christians Against Poverty Debt Centre and for the former Salt Cellar building and restaurant, the Salt Cellar Youth Project which have now ceased as of July 2022.
The Circuit is part of the Manchester and Stockport District of the Methodist Church and is accountable to the Methodist Conference. Detailed governance arrangements are outlined within the Constitutional Practice and Discipline of the Methodist Church (CPD) by order of the annual conference.
## **Additional Governance Issues**
## **Induction/Training of Trustees**
As is evident from Appendix A, the appointment of a substantial number of trustees is the responsibility of the local churches. On appointment, all trustees are made aware of the duties and responsibilities of trustees through relevant guidance notes issued by the Methodist Connexion and the Charity Commission.
## **Risk Management**
The trustees regularly review the risks faced by the Charity, both financial and otherwise; professional advice is taken, when required. Procedures and guidelines for mitigating risks issued by the Methodist Church are consulted. The Methodist Church’s robust safeguarding policy and safeguarding procedures are adopted by the Circuit in the Circuit’s Safeguarding Policy and in the Salt Cellar Youth Project’s Safeguarding Policy, which are both reviewed annually. Safeguarding is an agenda topic at every Circuit Meeting.
## **Related Parties**
Salt Cellar Ltd was a related party initially of the Oldham and Saddleworth Methodist Circuit and later the Oldham Methodist Circuit. The two directors of the Company were appointed by the Circuit trustees and the trustees established an Executive Board, including representatives of the trustees and others, to manage the Company. The principal activities of the Company were management and maintenance of the Salt Cellar premises, the operation of a café/restaurant and managing long-term and ad-hoc lettings. The annual taxable profits of Salt Cellar Limited were paid to the Circuit as the parent charity under the gift aid scheme.
The churches forming the Circuit are either excepted charities or registered charities and, as they are responsible for their own financial affairs, their accounts are reported separately by the individual churches.
## **CHARITABLE OBJECTIVES AND MAIN ACTIVITIES**
## **Summary of the Objects of the Charity set out in its Governing Document**
The purposes of the Methodist Church are and shall be deemed to have been since the date of Union the advancement of :
- the Christian faith in accordance with the doctrinal standards and the discipline of the Methodist Church;
- any charitable purpose for the time being of any Connexional, District, Circuit, local or other organisation of the Methodist Church;
2
**Oldham Methodist Circuit Report of the Trustees**
## **for the Year Ended 31 August 2022**
- any charitable purpose for the time being of any society or institution subsidiary or ancillary to the Methodist Church;
- any purpose for the time being of any charity being a charity subsidiary or ancillary to the Methodist Church.
## **Summary of the Main Activities undertaken for Public Benefit in Relation to these Objects**
We confirm that the trustees have regard to the Charity Commission’s guidance on public benefit, including the specific guidance on charities for the advancement of religion.
The Circuit aims to live out the Calling of the Methodist Church, summarised as:
- to increase awareness of God’s presence and to celebrate God’s love;
- to help people to grow and learn as Christians through mutual support and care;
- to be a good neighbour to people in need and to challenge injustice;
- to make more followers of Jesus Christ.
The trustees are committed to reaching as many people as possible in the Circuit’s geographical area. The Circuit produces a quarterly preaching plan to ensure that regular public acts of worship take place at each of the fourteen churches. Worship is open to all people (church members and non-members alike) without charge.
The churches forming the Circuit provide Christian teaching, pastoral care (including visiting the sick and bereaved) and, as part of their outreach, provide activities for a broad section of the whole community (from toddlers to senior citizens). The Circuit supports and encourages the churches in this work and funds the provision of ministers, also supplying and maintaining their accommodation (manses) and covering their legitimate expenses.
The Circuit had oversight of the work of the former ‘Salt Cellar’, which offered a café, and ministry to the public from its base at Church Lane in the centre of Oldham.
Through its ‘Salt Cellar Youth Project’, the Circuit engaged in work of various forms with young people in Oldham and the surrounding area.
The Circuit has a Partnership Agreement with the national debt counselling charity ‘Christians Against Poverty’ to provide a free debt counselling service to the residents of Oldham.
A number of ministry and mission activities throughout the local area are provided with financial support.
## **ACHIEVEMENTS AND PERFORMANCE**
## **Circuit Staff**
The Revd Dr Adrian Burdon is the Circuit Superintendent and Chairperson of the Circuit Trustees. Revd Dr Burdon is responsible for Fir Lane, Gravelhole, Shore Edge Trinity, South Chadderton and East Oldham Methodist churches, with support from supernumerary ministers Revd R Davies, Revd I Coverdale and Revd L Neal. Revd Eddie Gordon is responsible for Bardsley and Limeside Methodist churches, Revd Suva Catford was appointed in September 2021 as minister for Hollins and Zion churches, with continued oversight of Hey with Zion school along with the role of Oldham Town Centre Mission. Revd Ken McNally continued to work with the Saddleworth churches. Pioneer Missioners Paul and Maura Cook continued in their work in the Royton area of the circuit until Easter 2022, when 18 months into a five-year project they resigned. The Pioneer Missioner post remained vacant whilst the circuit reviewed the situation considering future needs and areas of mission.
Revd Natalie Hackett left the circuit in August 2021.
## **Further New Appointments**
## None
## **Worship, Prayer and Discipleship**
Worship continued in a variety of patterns across the Circuit. Honeywell Lane Church sadly closed in December 2021.
3
**Oldham Methodist Circuit Report of the Trustees for the Year Ended 31 August 2022**
## **Funding of Ministry and Mission Projects**
Churches and individuals continue to support the Christians Against Poverty Debt Centre Project and members supported and participated in the Oldham project to provide winter overnight accommodation for homeless people.
## **Circuit Properties (Manses)**
The Circuit currently owns six manses which are inspected regularly to identify essential maintenance issues and to help plan for renewals of major items. Both routine and emergency repair works have been carried out during the year. The vacant manse at Brae Side was rented out on a six-month rolling tenancy, until its future use as a manse, is determined. The Denbydale manse also became unoccupied during April 22 and discussions on the future of the empty dwelling were ongoing at the year end.
## **General Administration**
The circuit continue to adhere to the Circuit Safeguarding Policy for Children and Vulnerable Adults, dated September 2020, which continues to reflect current Connexional policy.
## **The Salt Cellar**
The Salt Cellar continued to run its café for visitors to the town centre, let space to local businesses and continued to be used as a meeting venue by various charitable groups.
Prayer continued to be central to the work of the Salt Cellar and each day began with a prayer time. A lunchtime ‘Half Hour with Jesus’ worship session, was regularly held on Fridays and continued up to the closure in July 2022. The ‘Half Hour Jesus’ session moved to Costa Coffee after the Salt Cellar closure and has continued to grow with more people attending on a weekly basis.
## **Christians Against Poverty (CAP) Debt Centre**
Since Autumn 2012 a free debt counselling service has been provided for local residents. This is a partnership between the Circuit and Christians Against Poverty. The project is managed by a management committee appointed by and responsible to the trustees. The service has proved highly successful in helping clients to deal with debt and related problems. Over 100 clients have been helped since its start. The project is home-based and does not need an office.
Mrs Eike Harvey who led the project from the start stepped down at the end of June 2022. Kelkina Ackrill, who was working alongside Eike as Debt Coach, took over as Centre Manager.
The paid Manager is assisted and supported by around 20 ‘befrienders’ and other volunteers from the churches in Oldham and Saddleworth.
The Debt Centre also operates in partnership with Keyring & Oldham Food Bank running the Ancora Project helping people in crisis. This project includes running the CAP Lifeskills course
The demand for the service is ever increasing as more people are experiencing financial hardship as a result of Covid 19 and the cost of living. For some time, CAP has been wanting (us) to try and increase its capacity.
We were able to employ Kelkina as additional part-time Debt Coach from July 2021 to June 2022. However we have not replaced Kelkina following her promotion to Centre Manager as current funding does not allow for this. The project is funded by a combination of regular and occasional donations from churches and church members and a grant of £8000 per year from the Circuit
## **Volunteer Contributions**
A valuable resource for the Circuit continues to be the many volunteers who assist in various ways with the ministries of the Circuit and CAP Debt Centre and at the Salt Cellar prior to its closure.
## **The Future**
The Circuit was successful in an application to appoint a presbyter from Minister from Other Churches and Conferences (MOCC) as from September 2022. Revd Kennedy Gondongwe, from Zimbabwe, has taken up office covering South Chadderton, Fir Lane and Gravelhole churches. The circuit has reviewed the mission opportunities within the circuit. A deacon is to be appointed to support mission work in the High Crompton and Shaw area of Oldham as from September 2023 and support mission across the circuit.
4
**Oldham Methodist Circuit Report of the Trustees for the Year Ended 31 August 2022**
## **FINANCIAL REVIEW**
## **Review of 2021-22 Accounts**
## **General Fund (Unrestricted)**
The main source of income continues to be the assessment contributions from local churches, which brought in £205,770. Churches were experiencing financial difficulties, some of this due to the impact of covid19. Churches in Shaw and Royton Circuit had received, in the previous year, the equivalent of a one quarter reduction in the assessment. It was therefore agreed that the churches in the Saddleworth & Oldham Circuit should receive the same benefit. In addition, the budget included for £19,000 income from rent of vacant manses but only £14,153 was received. Consequently, income overall was a little over £40,000 less than predicted.
The major outgoings are the costs of employing the ministerial team, the Circuit’s financial contribution to the Manchester and Stockport Methodist District and the costs associated with providing the manses. The stipend costs were broadly as expected, as were the administrator's salary costs. Property maintenance costs were almost £10,000 more than the original projected budget.
## **Circuit Model Trust Fund (Unrestricted)**
The Circuit Model Trust Fund (CMTF) is an unrestricted fund which holds the proceeds of sales from Model Trust property (local churches, manses etc); these are paid to the custodian trustees (the Trustees for Methodist Church Purposes) for investment. The managing trustees of the CMTF are the Circuit trustees who use the fund to support the Circuit’s ministry/mission, including some property-related projects, and also to provide grants/loans to local Methodist churches for the same purposes. Grants/donations/loans are also made to other causes which are in accord with the Circuit’s own mission purposes. A compulsory annual levy (based on the year-end balance of the fund) is payable from the CMTF to the District Advance Fund.
Property sale of Honeywell Lane Church achieved a gross sale of £371,833, offset by The Connexional Levy of £124,733. St Paul’s, Shaw, gross sale was £144,899 with a repayable grant on the property of £140,000. No property was purchased in 2021/22. The Salt Cellar closed in July 2022 and the property was put on the market for a value of around £500,000. A sale of the Salt Cellar property has not yet been completed.
## **Restricted Funds**
Restricted Funds comprise a number of Circuit funds invested with the Trustees for Methodist Church Purpose and CAP Debt Centre. The Salt Cellar closed in July 2022. The Salt Cellar Resource Centre Funds of £21,886 were transferred to the circuit. At 31st August 2022, restricted funds totalled £42,883, made up of £22, 382 internal organisations (CAP), £3,250 TMCP investments and £17,251 for the closure of the Salt Cellar Resource Centre.
## **Endowment Funds**
Endowment Funds at the start of the year were £29,155 at the end £29,209. The trustees are still intending to explore the potential release of capital from the James Cocker Gift.
## **Tangible Fixed Assets**
Tangible Fixed assets comprise the Circuit's manses and the Salt Cellar building. These properties are included in the accounts at the valuations used for insurance purposes at September 2021 - except for the Salt Cellar building which has been revalued at £500,000 (previous value £250,000), being the estimated sale value.
As a result of these revaluations, the accounts show a gain on revaluations of £442,378.
These assets are included in the unrestricted funds total.
5
**Oldham Methodist Circuit Report of the Trustees for the Year Ended 31 August 2022**
## **Reserves Policies**
## **General Fund (Unrestricted)**
In order to meet its ongoing financial obligations, including payment of minister employment costs monthly in advance, and to provide both for the possibilities of future assessment income failing to keep pace with Circuit expenditure and for unanticipated or emergency expenditure, the Circuit must maintain sufficient ‘free’ general unrestricted reserves. ‘Free’ reserves are defined as unrestricted reserves less the investment in tangible assets/property and designated funds. In line with guidance provided by the Methodist Church, the trustees aim to maintain ‘free’ reserves at a level of between three and six months’ typical expenditure i.e. between £70,000 and £140,000.
On the above basis, ‘free’ reserves at 31st August 2022 totalled £229,571. It is anticipated that the Circuit will continue to provide financial support to the individual churches within the Circuit, and that this will reduce the free reserves to a level within the target range.
## **Circuit Model Trust Fund - CMTF (Unrestricted)**
The balance on the Circuit Model Trust Fund had increased to £352,197 by 31[st] August 2022, mainly as a result of the proceeds from the sale of closed churches.
It is anticipated that these funds will be utilised for future expenditure such as the missionary work in High Crompton and Shaw, a replacement for the Salt Cellar project in Oldham town centre, and necessary work to /replacement of the Circuit manses.
## **Restricted Funds**
Restricted funds amounted to £42,883 at 31[st] August 2022. Most of these funds are restricted for use by the Christians Against Poverty (CAP) project with £17,251 for the closure of the Salt Cellar Resource Centre.
## **OTHER OPTIONAL INFORMATION**
No further information
## **DECLARATION**
The trustees declare that they have approved the trustees’ report above at the trustees’ meeting held on
............................
Signed on behalf of the charity’s trustees.
Signatures
The Revd Dr Adrian Burdon Janet Abbott Position Superintendent Minister Senior Circuit Steward Date 26 March 2023
6
**Oldham Methodist Circuit Report of the Trustees**
## **for the Year Ended 31 August 2022**
**Appendix A – Member of the Circuit Meeting – circuit trustees**
|1. The Revd Dr Adrian Burdon|Superintendent Minister
Chair of the Meeting|
|---|---|
|2. The Revd Suva Catford|Circuit Minister|
|3. The Revd Dr KennedyGondongwe|Circuit Minister|
|4. The Revd Kenneth McNally|Circuit Minister|
|5. The Revd Robert Davies|SupernumeraryMinister|
|6. The Revd Edward Gordon|SupernumeraryMinister|
|7. The Revd Neville Whitehead|SupernumeraryMinister|
|8. Janet Abbott|Senior Circuit Steward|
|9. Dave Alllonby|Greenfield Steward|
|10. Bob Ashton|Hollins Steward|
|11. Nigel Bacon|TrinityTreasurer|
|12. Moira Bergin|Zion Steward|
|13. Ian Crossley|TrinityRoyton Steward|
|14. Annie Goldthorpe|BardsleySteward|
|15. Stephen Foster|Zion Treasurer|
|16. Barbara Howard|Delph Steward|
|17. Kathryn Heathcote|Circuit Steward(Pastoral)|
|18. Denis Heyes|Limeside Steward|
|19. Julie Hughes|Shore Edge Shaw Treasurer|
|20. Steve Jones|South Chadderton Treasurer|
|21. Glennis Kirkwood|Circuit Steward (Property)
Hollins Treasurer|
|22. Judith McArdle|Gravelhole Royton Steward|
|23. June Mills|East Oldham Steward|
|24. Malcom Milwain|Heywith Zion School(Chair of Govs)|
|25. Janet Mitchell|St Andrew’s Shaw Treasurer|
|26. Susan Nuttall|Gravelhole Treasurer|
|27. Joanna Ortiz (Secretary) (non-voting)|Secretary to the Meeting
Circuit Safeguarding Officer
Circuit GDPR Officer|
|28. LesleyPerry|St Andrews Shaw Steward|
|29. Graham Radcliffe|Circuit Steward(Mission)|
|30. Ruth Radcliffe|South Chadderton Steward|
|31. Val Ridley|Shore Edge Steward|
|32. DorothyRoberts|Uppermill Steward|
|33. Gordon Roscoe|East Oldham Treasurer
Chair of CAP Management Cttee|
|34. Carol Stopford|Fir Lane Steward|
|35. Margaret Taylor|Delph Finance Committee Rep|
|36. DorothyThorpe|BardsleyTreasurer|
|37. Paul Titmuss|Greenfield Rep|
|38. Norman Unsworth|Local Preachers’ Secretary|
|39. Jim Upton|Uppermill Treasurer|
|40. Michael Wilson|Limeside Treasurer|
|41. Edwin Winterbottom|Fir Lane Treasurer|
7
## **Oldham Methodist Circuit Statement of Financial Activities for the Year Ended 31 August 2022**
|**Income**
1 Donations and legacies
2 Income from monetary investments
3 Income from investment properties
4 Assessments on Churches
5 Net capital receipts
6 Grants received
7 Internal Organisations
8 Other charitable income
9**Total income**
**Expenditure**
**Expenditure on charitable activities:**
10 Grants and donations
11 Stipends, salaries, NIC and
pension costs
12 Property maintenance
13 District Assessment & Levy
14 Purchase of property
15 Depreciation
16 Office, administration and travel
expenses
17 Internal Organisations
18 Other outgoings
19**Total charitable expenditure**
**20 Net income before investment**
**losses/gains**
21 Losses/gains on monetary
investments
22 Gains on revaluation of fixed assets
**23 Net income/(expenditure) before**
**transfers**
22 Transfers between funds
23 Reclassification of funds
24 Other gains/(losses)
**25 Net movement in funds**
26 Funds brought forward
27 Total Funds transferred (1stSeptember
2021)
**29 Total funds carried forward**|**Note**
3
13
4|**General Fund**
**(Unrestricted)**
**Circuit Model**
**Trust**
**(Unrestricted)**
**Restricted**
**Funds**
**Endowment**
**Funds**
**Total**
**2021-22**
£
£
£
£
£
4
827
**831**
334
1,900
23
137
**2,394**
14,153
**14,153**
205,770
**205,770**
251,999
**251,999**
500
**500**
10,503
**10,503**
20,558
22,650
**43,208**
**240,819**
**253,899**
**34,503**
**137 **
**529,358**|
|---|---|---|
||5
6
9|1,990
35,000
4,300
**41,290**
151,530
15,412
**166,942**
39,830
1,107
**40,937**
64,355
7,163
**71,518**
**-**
**-**
23,720
660
10
83
**24,473**
56,449
**56,449**
370
1,298
**1,668**
**281,795**
**42,823**
**78,576**
**83**
**403,277**|
|||**(40,976)**
**211,076**
**(44,073)**
**54**
**126,081**|
|||(750)
(266)
(1,016)
442,378
442,378
**401,402**
**210,326**
**(44,339)**
**54**
**567,443**|
|||79,795
(90,000)
10,205
-
-
-
**481,197**
**120,326**
**(34,134)**
**54**
**567,443**|
||2|2,247,031
231,871
77,017
29,155
2,585,074|
|||**2,728,228**
**352,197 **
**42,883**
**29,209**
**3,152,517**|
8
## **Oldham Methodist Circuit**
## **Balance Sheet**
## **for the Year Ended 31 August 2022**
|**Fixed Assets**|**Note**|**General Fund**
**(Unrestricted)**
£|**Circuit Model**
**Trusts**
**(Unrestricted)**
£|**Restricted**
**Funds**
£|**Endowment**
**Funds**
£|**Totals**
**2022**
£|
|---|---|---|---|---|---|---|
||||||||
|Circuit Manses & Equipment|10|1,762,321||||1,762,321|
|Other Properties (resource centre)|10|500,000||||500,000|
|Investment Properties|10|236,336||||236,336|
|Investments|14||||29,209|29,209|
|**_Total fixed assets_**||**2,498,657 **|**0**|**0**|**29,209**|**2,527,866**|
|**Current Assets**|||||||
|Debtors|11|21,432||||21,432|
|Loans by the Circuit||||||-|
|Investments with TMCP||55|352,197|3,250||355,502|
|Central Finance Board Deposits||78,214||||78,214|
|Cash at Bank and in hand||142,413||39,633||182,046|
|**_Total current assets_**||**242,114**|**352,197 **|**42,883**|**-**|**637,194 **|
|**Current liabilities**|||||||
|Creditors (due in under 1 year)|12|12,543||||12,543|
|Grants payable within 2022-23||||||-|
|**_Total current liabilities_**||**12,543**|**-**|**-**|**-**|**12,543**|
|**_Net current assets/liabilities_**||**229,571**|**352,197 **|**42,883**|**-**|**624,651 **|
||||||||
|**_Total assets less current_**
**_liabilities_**||**2,728,228**|**352,197 **|**42,883**|**29,209**|**3,152,517**|
||||||||
|**Long term liabilities**
**(due after more than oneyear)**|||||||
|Grants payable after 2022-23||||||**-**|
|Loans to the Circuit||||||**-**|
||||||||
|**_Net assets_**||**2,728,228**|**352,197 **|**42,883**|**29,209**|**3,152,517**|
|**Funds of the Circuit**|||||||
|General Fund (Unrestricted)||2,728,228||||2,728,228|
|Circuit Model Trust Fund
(Unrestricted)|||352,197|||352,197|
|Designated Funds (Unrestricted)|||||||
|**_Total Unrestricted Funds_**||||||**3,080,425**|
|Restricted Funds||||42,883||42,883|
|Endowment Funds|||||29,209|29,209|
|**_Total Funds_**|13|**2,728,228**|**352,197 **|**42,883**|**29,209**|**3,152,517**|
9
## **Oldham Methodist Circuit Cash Flow Statement for the Year Ended 31 August 2022**
||**2022**|
|---|---|
|**Statement of cash flows**|**£**|
|**Cash from operating activities**||
|Net cash used in operating activities|**(151,135)**|
|**Cash flows from investing activities**||
|Dividends and interest from investments|2,394|
|Proceeds from the sale of tangible fixed assets|251,999|
|**Net cash provided by investing activities**|**254,393**|
|**Change in cash and cash equivalents in the year**|**103,258**|
|Cash and cash equivalents at the date of merger (1stSeptember 2021)|541,713|
|**Cash and cash equivalents at the end of the year**|**644,971**|
||**2022**|
|---|---|
|**Reconciliation of net movement in funds to net cash flow from operating activities**|**£**|
|Net income for the period (as per Statement of Financial Activities)|567,443|
|**Adjustments for:**||
|Dividends and interests from investments|(2,394)|
|Capital receipts|(251,999)|
|Increase in debtors|(213)|
|Decrease in creditors|(21,594)|
|**Total cash generated from operating activities**|**(151,135)**|
||**2022**|
|**Analysis of cash and cash equivalent**|**£**|
|Cash at bank|182,046|
|Central Finance Board Deposits|78,214|
|Trustees for Methodist Church Purposes deposits|384,711|
|**Cash and cash equivalents at the end of the reporting period**|**644,971**|
10
**Oldham Methodist Circuit Notes to the Accounts for the Year Ended 31 August 2022**
## **1 Basis of accounting policies**
## **i Accounting standard**
The financial statements have been prepared under the Charities Act 2011 in accordance with the 2014 version of Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with FRS102 – the Charities SORP (FRS102) and taking note of the Update Bulletin 1 issued in 2016.
## **ii Public benefit entity**
The Oldham Methodist Circuit meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical costs or transaction value unless otherwise stated in the relevant accounting policy note(s) below.
## **iii Funds**
The funds held constitute: General Funds held for any purpose of the Circuit which are Unrestricted. The Circuit Model Trust Fund has wide purposes defined in Standing Orders and is categorised as unrestricted. Restricted funds which are held for a narrower purpose . There are also Endowment funds as listed. Details of each material fund are disclosed in the final note to these accounts. Any funds may be represented by more than just cash.
## **iv 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. The accruals basis has been used and trustees present accounts that show a true and fair view of the Circuit’s financial position and activities.
## **v 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.
## **vi 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.
## **vii 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.
## **viii Income recognition**
Income is included in the Statement of Financial Activities (SOFA) when the Circuit becomes entitled to the resources, and the trustees are reasonably certain they will receive the resources; and the monetary value can be measured with sufficient reliability.
Individual amounts categorised as _Other income_ in the SOFA will be shown separately if they are considered material.
The Circuit acts as agent in two matters:
- the collection from Churches and payment over of their contributions to various funds controlled and administered by The Methodist Church
- "Connexional Funds"
- the administration (application, collection and disbursement) of grants requested by Churches within the Circuit from, but not limited to, the District and Connexion. In all these matters the transactions are not reflected in the SOFA because they are the income of either the Connexion or Churches as appropriate. Instead, the transactions are disclosed in the Notes to the Accounts as required by SORP (FRS102), module 19.12n.
In accordance with the Charities SORP (FRS 102), the time of volunteers is not recognised. If goods are donated, a value will be shown in the SOFA or Notes where the value is considered material.
## **ix 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.
11
**Oldham Methodist Circuit Notes to the Accounts for the Year Ended 31 August 2022**
## **x Grants**
Grants made by the Circuit from its own funds are recognised in full at the time of agreement or when the Circuit accepts that there is a legal or operational obligation to make the payment. When the grant is recurrent over more than one year the balance payable in future years is treated as a provision for future commitments in the Balance Sheet against the appropriate fund, the provision being released in future years as instalments are paid in accordance with the originally agreed terms.
## **xi VAT**
Since the Circuit is not VAT registered, all input VAT is charged with the expenses to which it refers.
## **xii Tangible fixed assets**
These are capitalised if they can be used for more than one year, and individually cost at least £500. The freehold and/or long leasehold residential property is shown in the accounts at September 2021 deemed values, being the insurance reinstatement according to Methodist Insurance as at September 2021. No depreciation is provided on the buildings because the trustees consider the current residual fair value of the manse buildings (on the assumption that it had reached the end of its useful economic life by the year-end) to be not less than its current value. Any depreciation would not be material. The property has been reviewed for impairment.
From time to time the Circuit may be required to assume responsibility for Church premises following closure and cessation of worship. This results in the Circuit becoming Managing Trustees for the property. At that time the property is recognised as an asset at its anticipated net sale price as determined by professional valuation. Expenditure on such assets, if held for reinvestment of the proceeds, as the trustees determine, likely to enhance sale value is capitalised at the time expenditure is incurred.
## **xiii (a) Investment Properties**
From time to time the Circuit may hold residential property (formerly manses) which is surplus to its normal staffing requirements. Where this is the case and it is anticipated that the property is unlikely to be used as a manse within a period of two years, the property is classified as Investment Property (whether let out or not) and any lets are at market rates unless there is a compelling reason not to do so in furtherance of the Circuit's charitable objectives
## **xiii (b) Investments**
The Circuit's investments are in monetary assets classified as basic financial instruments under FRS102 and 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 are shown in the SOFA.
## **xiv Debtors and Prepayments**
Debtors are stated at the amounts owed to the Circuit or prepaid.
## **xv Creditors and Accruals**
Creditors are initially recognised at settlement amount after any trade discounts, or the amount advanced to the Circuit. Creditors include both sundry expenses and specifically the 1st quarter assessment received in August.
## **xvi 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 minsters.
12
**Oldham Methodist Circuit Notes to the Accounts for the Year Ended 31 August 2022**
## **2. Merger details**
As at 1[st] September 2021, the Oldham & Saddleworth Circuit (Registered Charity No. 1134364) and Shaw & Royton Circuit (Registered Charity No. 1138074) amalgamated together, establishing the new Oldham Methodist Circuit (Registered Charity No. 1194708). The two pre-existing circuits ceased to exist as separate entities at the end of 2020-21 (31[st] August 2021).
Shaw & Royton Circuit prepared their 2020-21 accounts using the receipts and payments method, and therefore these 2020-21 figures have been restated using the accruals basis. Oldham & Saddleworth Circuit already reported using the accruals basis.
## **Analysis of previous SoFA components for the previous reporting period (year ending 31 August 2021)**
||**Oldham &**
**Saddleworth**|**Shaw &**
**Royton**
**(receipts &**
**payments)**|**Adjustment**
**for transition**
**to accruals**
**basis**|**Shaw &**
**Royton**
**(accruals)**|**Combined**
**total**|
|---|---|---|---|---|---|
||£|£|£|£|£|
|Total income|206,620|100,388|-|100,388|307,008|
|Total expenditure|222,169|110,550|-|110,550|332,719|
|Net income/(expenditure)|(15,549)|(10,162)|-|(10,162)|(25,711)|
|Other gains/(losses)|1,891|-|-|-|1,891|
|Net movement in funds|(13,658)|(10,162)|-|(10,162)|(23,820)|
|Total funds brought forward|1,789,160|248,455|571,279|819,734|2,608,894|
|**Total funds carried forward**|**1,775,502**|**238,293**|**-**|**809,572**|**2,585,074**|
## **Analysis of net assets at the date of merger (1 September 2021)**
||**Oldham &**
**Saddleworth**|**Shaw &**
**Royton**
**(receipts &**
**payments)**|**Adjustment**
**for transition**
**to accruals**
**basis**|**Shaw &**
**Royton**
**(accruals)**|**Combined**
**total**|
|---|---|---|---|---|---|
||£|£|£|£|£|
|Net assets|1,775,502|238,293|571,279|809,572|2,585,074|
|||||||
|Represented by:||||||
|Unrestricted funds|1,682,516|225,107|571,279|796,386|2,478,902|
|Restricted income funds|63,831|13,186|-|13,186|77,017|
|Endowment funds|29,155|-|-|-|29,155|
|**Total funds**|**1,775,502**|**238,293**|**571,279**|**809,572**|**2,585,074**|
13
**Oldham Methodist Circuit Notes to the Accounts for the Year Ended 31 August 2022**
## **3. Capital Receipts**
Capital receipts relates to the sale of the closed Honeywell Lane Methodist church and St. Pauls Methodist Church. All sales of Methodist property are subject to a levy by the Connexion calculated on a sliding scale based on the gross sale price. The figure is shown net of this CPF Levy. Also, any historic grants made by the Connexion to the closed church are reclaimed from the proceeds of sale before the CPF Levy is applied.
||**General Fund**
**(Unrestricted)**|**Circuit Model**
**Trust**
**(Unrestricted)**|**Restricted**
**Funds**|**Total**
**2021-22**|
|---|---|---|---|---|
||£|£|£|£|
|Gross sale (Honeywell Lane)||371,833||**371,833**|
|CPF Levy on property sales||(124,733)||**(124,733)**|
|Gross sale (St. Pauls)||144,899||**144,899**|
|Repayable grants on property||(140,000)||**(140,000)**|
|**Total**||**251,999**||**251,999**|
## **4. Other Charitable Income**
||**General Fund**
**(Unrestricted)**|**Circuit Model**
**Trust**
**(Unrestricted)**|**Restricted**
**Funds**|**Total**
**2021-22**|
|---|---|---|---|---|
||£|£|£|£|
|St. Pauls funds transferred|16,583|||**16,583**|
|Contribution towards manse costs|3,975|||**3,975**|
|Salt Cellar Resource Centre funds
transferred|||21,886|**21,886**|
|Pioneer missioner project|||639|**639**|
|Other–Salt Cellar Resource Centre|||125|**125**|
|**Total**|**20,558**||**22,650**|**43,208**|
## **5. Grants and donations paid**
||**General Fund**
**(Unrestricted)**|**Circuit Model**
**Trust**
**(Unrestricted)**|**Restricted**
**Funds**|**Total**
**2021-22**|
|---|---|---|---|---|
||£|£|£|£|
|Pension Reserve payment||35,000||**35,000**|
|Grant to Salt Cellar Ltd|||4,300|**4,300**|
|Donation for 3 Generate tickets|1,990|||**1,990**|
|**Total**|**1,990**|**35,000**|**4,300**|**41,290**|
14
**Oldham Methodist Circuit Notes to the Accounts for the Year Ended 31 August 2022**
## **6. Staff Costs**
|**Staff Costs paid during the year were:**||||
|---|---|---|---|
||**Ministers**|||
||**(trustees)**|**Lay staff**|**2021/22**|
||£|£|£|
|Stipends, salaries and benefits in kind|111,940|23,593|**135,533**|
|Social security costs|8,052|777|**8,829**|
|Pension costs|20,840|1,109|**21,949**|
|Apprenticeship levy|560|71|**631**|
|Total staff costs||||
||141,392|25,550|**166,942**|
|||||
|Expenses (Travel, accommodation and other expenses incurred in the||||
|normal course of employment)|7,166|0|**7,166**|
|||||
|Average number of staff employed during the year were:|7|2.3|**9.3**|
No employee received remuneration amounting to more than £60,000 in either year.
Wages and salary costs includes £nil in respect of redundancy payments in 2022.
## **7. Trustees’ remuneration and expenses**
|**7. Trustees’ remuneration and expenses**||
|---|---|
||**2021/22**
**£**|
|Payments made to trustees for additional services provided to the Circuit by agreement with the
Circuit Meeting|0|
|Number of trustees who werepaid expenses relatingto trustee duties|0|
|Total amountpaid|0|
|There were no trustees' remuneration or other benefits for the year ended 31 August 2022 other than that paid to
ministers and laystaff in the normal course of their duties and disclosed above.||
## **8. Fees for examination or audit of the accounts**
|**8. Fees for examination or audit of the accounts**||
|---|---|
||**2021/22**
**£**|
|Independent examiner’s or auditors' fees for reporting on the
accounts|2,450|
|Other fees (eg: advice, accountancy services) paid to the independent
examiner or auditor|0|
|**Total**|**2,450**|
## **9. Other outgoings**
|**9. Other outgoings**||
|---|---|
||**2021/22**
**£**|
|Pioneer missionerproject expenditure|1,118|
|Other outgoings|550|
|**Total**|**1,668**|
15
**Oldham Methodist Circuit Notes to the Accounts for the Year Ended 31 August 2022**
## **10. Fixed Assets (including investment properties)**
|**Cost or valuation**
Balance brought forward
Additions
Revaluations (+/-)
Disposals (-)
Transfers * (+/-)
Balance carried forward
**Accumulated depreciation**
Balance brought forward
Depreciation charge for year (-)
Revaluations (+/-)
Disposals (-)
Transfers* (+/-)
Balance carried forward
Brought forward
**Carried forward**|**Manses**|**Manses**
**held as**
**investment**
**properties**|**Other**
**buildings**|**Fixtures,**
**fittings and**
**equipment**|**Total**|
|---|---|---|---|---|---|
||**£**|**£**|**£**||**£**|
|||||||
||1,806,279||250,000|0|2,056,279|
|||||||
||192,378|-|250,000||442,378|
|||||||
||(236,336)|236,336|||0|
||1,762,321|236,336|500,000|0|2,498,657|
|||||||
||0|0|0|0|0|
||||||0|
||||||0|
||||||0|
||||||0|
||0|0|0|0||
|||||||
||1,806,279|0|250,000|0|2,056,279|
||**1,762,321**|**236,336**|**500,000**|**0**|**2,498,657**|
## **11. Analysis of debtors**
||**Due within one year**|**2021/22**
**£**|
|---|---|---|
||Trade debtors|5,840|
||Prepayments|15,592|
||**Total**|**21,432**|
## **12. Analysis of creditors**
||**Amounts failing due within one year**|**2021/22**
**£**|
|---|---|---|
||Trade Creditors|205|
||Other Creditors|2,457|
||Prepaid Assessments|9,881|
||**Total**|**12,543**|
16
## **Oldham Methodist Circuit Notes to the Accounts for the Year Ended 31 August 2022**
## **13. Detailed analysis of individual fund movements**
## **Unrestricted Funds**
|**Unrestricted**
**Fund Name**|**Combined**
**Funds at**
**date of**
**merger (1st**
**September**
**2021)**|**Incoming**
**Resources**|**Resources**
**Expended**|**Transfers &**
**Reclassification**|
**Gain/(losses)**|**Closing**
**Balance**|**Purpose of**
**the fund**|
|---|---|---|---|---|---|---|---|
|||||||||
|General|2,247,031|240,819|(281,795)|79,795|442,378|2,728,228|The general purposes
of the Circuit|
|Model Trust
Fund|231,871|253,899|(42,823)|(90,000)|(750)|352,197|Support for the mission
of the Circuit|
|Totals|2,478,902|494,718|(324,618)|(10,205)|441,628|3,080,425||
## **Restricted Funds**
|**Restricted**
**Fund Name**|**Combined**
**Funds at**
**date of**
**merger (1st**
**September**
**2021)**|**Incoming**
**Resources**|**Resources**
**Expended**|**Transfers**|**Gain/(losses)**|**Closing**
**Balance**|**Purpose of the fund**|
|---|---|---|---|---|---|---|---|
|TMCP
Investments|3,503|23|(10)||(266)|3,250|Various small bequests/gifts for
specific purposes.|
|Internal
Organisations|60,328|10,503|(56,449)|8,000||22,382|Christians Against Poverty|
|Pioneer
missioners
project|13,186|1,139|(16,530)|2,205||0|Circuit project (ceased during
2021/22)|
|Salt Cellar
Resource
Centre|0|22,011|(4,760)|||17,251|For the closure of the Salt Cellar
Resource Centre|
|Other|0|827|(827)|||0|Donations raised for specific
purposes.|
|Totals|77,017|34,503|(78,576)|10,205|(266)|42,883||
## **Endowment Funds**
|**ndowment Funds**|||||
|---|---|---|---|---|
|**Endowment Fund**
**Name**|**How the capital is**
**invested**|**The current value of**
**the capital**|**Annual income**|**What the income was used for**|
|James Cocker gift|TMCP (T1473)|29,209|0||
|Totals||29,209|0||
17
**Report of the Independent Examiners To the Trustees of Oldham Methodist Circuit**
## **14. Analysis of net assets between funds**
Fund balances at 31 August 2022 are represented by:
||**General Fund**
**(Unrestricted)**|**Circuit Model**
**Trust**
**(Unrestricted)**|**Restricted**
**Funds**|**Endowment**
**Funds**|**Total**
**2021-22**|
|---|---|---|---|---|---|
||£|£|£|£|£|
|Tangible fixed assets|2,498,657|||29,209|**2,527,866**|
|Current assets|242,114|352,197|42,883||**637,194**|
|Current liabilities|(12,543)||||**(12,543)**|
|**Total**|**2,728,228**|**352,197**|**42,883**|**29,209**|**3,152,517**|
## **15. Related party transactions**
During the year the Circuit received assessment income totalling £205,770 from the various churches within the Circuit.
The Circuit also incurred assessment costs of £71,518 payable to the District.
Salt Cellar Ltd is a related party of the Oldham Methodist Circuit. During the year the Circuit had the following transactions with Salt Cellar Ltd: funds received totalling £22,012 and direct costs payable of £4,300.
19
Re rt ofthe Inde
endent Examlners
To the Trustees ol
Oldharn Methodlst Clrcult
I ropjrt to the charty trustees on rny turnlnath)n of the accounts of Oldham Meihodlst Clrcult for the year ended 31 Auwst 2022
which Ire set out on pa5 8- 18.
Ae5pofislbWllles bM15 01 report
A5 the Chartys trustees you •re respon51ble for the preporntlon ol the •ccounts In actordance wlth the requlrtments of the Ch•rltles
Act 20111.the Arv).
I report In resF*rt of myexamlfiatlon ofthE charWs•¢¢ountsc•Trfedout under $Èttlon 145 oftheAct and In£arryln8out myex•mln3tlon
I have followed all the appllcable Dlrectlons it¥en by the Charlty Commlsslon under sectlon 14515llbl of the Art.
I have cornpleted rny ex•mlNtlon. I confinn thot no rniterl•l mantrs have tome to rny attentlon In connectlon wRh the examln•tlon
gl¥in8 rne ¢au5e to belth that in any rn•tert•l rospect..
accountlTr8 records were not ktpt In rtspea of the charlty •$ requlred by 5e¢tknn 13001 the Art- or
the •ccounts do not accord with those records,. or
the •ecounts do not compfy wrth the appllcable requlrernents concernln8 the forrn and content ol accounts set out In the Charitles
(Accounts and Rep)rtsl Re8u&tlon5 2( other th•n any requlrement that the accounts gfve a 'true and falr Vlt which Is not
rnatter con51Llered a5 Part of an Independtnt tvmln•?n.
I have no concems and have come across no other m•tter5 In conneaion wlth the examlnatlon to whlch •ttentlon should be drawn In
th15 report Sn order to enable a proFer UndendIn1 of the accounts to be reached.
Leanne Nleld ACA
Arc Account•nry Solutlons UmltÈd
51 Laverton Road
Lharn St. Annes
Lancashlre
FY8 IEN
Oate..
0%
19