Davidson's Mains Parish Church. Annual Report and Financial Statements. for the year ended 31 December 2018

Transcription

1 Annual Report and Financial Statements Charity number: SC Congregation number:

2 Contents Page Charity information 1-2 Trustees' Annual Report 3-7 Independent Examiner's Report 8 Statement of Financial Activities 9 Balance Sheet 10 Notes to the Financial Statements 11-25

3 Legal and Administrative Information Charity name Charity registration number SC Congregation Reference Number Contact address 1 Quality Street Davidson's Mains Edinburgh EH4 5BB The Trustees of the Congregation are: Elected members serve as trustees for six year terms with the retirement date indicated below. Other trustees serve for undefined terms. Elected members (due to retire - d May 2019; due to retire - e May 2021; due to retire - f May 2023) Joy Atterbury - f Donald Campbell - d (Ministry Area Leader for Stewardship & Finance) Ken Dickson - d (Ministry Area leader for Small Groups) Nicky Donald - e Flora Johnston - e (Session Clerk from February 2018) Susan Menzies - f Susan McNarry - d Rachel Milburn - e Martyn Sunter - f Other Trustees Rev Daniel Robertson - Moderator Allan McCulloch - Session Clerk - retired February 2018 Graeme Small - Presbytery Elder Anne Allan - Ministry Area Leader - Pastoral Care Fred Nelson - Ministry Area Leader - Administration Michael Duncan - Ministry Area Leader - Youth Brenda Duncan - Ministry Area Leader - Youth Page 1

4 Legal and Administrative Information Corresponding members of the Kirk Session Corresponding members of the Kirk Session are not trustees but serve in other capacities for an undefined term: Gail Rose - Head of Oasis Wellbeing Centre Church Treasurer Independent examiner Bankers Andrew Milburn David Jeffcoat, FCCA Alexander Sloan Accountants and Business Advisers 50 Melville Street Edinburgh EH3 7HF Royal Bank of Scotland 239 St John's Road Edinburgh EH12 7XA Clydesdale Bank 33 Main Street Davidson's Mains Edinburgh EH4 5BZ Page 2

5 Trustees' Annual Report The Trustees present their report and the financial statements of the charity for the year ended 31 December Trustees The Trustees serving during the year and since the year end are detailed on page 1-2. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the General Assembly Regulations for Congregational Finance, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published on 16 July STRUCTURE, GOVERNANCE AND MANAGEMENT Status of charity and governing document The congregation is a registered Scottish charity, number SC009470, and is presently administered in accordance with the terms of the Deed of Constitution (Unitary Constitution). Appointment of Trustees The members of the Kirk Session are the charity's trustees and include the minister, nine elected members, the Presbytery Elder and the Ministry Area Leaders who have been ordained as elders. Ministry Areas Leaders who have not been ordained as elders are not trustees and are considered to be corresponding members of the Kirk Session. The minister is elected by the congregation and inducted by Presbytery. All other members of the Kirk Session are chosen from those members of the congregation who are considered to have the appropriate competence, chemistry, character and calling. Organisational structure The Kirk Session is responsible for all aspects of the church. All temporal matters such as Fabric, Finance and the Church Office are dealt with through the Administration Team or The Stewardship and Finance Team who, as needs arise, refer matters to the Kirk Session for approval. Risk management The Kirk Session includes a Ministry Area Leader for Stewardship and Finance who provides regular financial updates. During 2017, the Kirk Session presented its vision and priorities for the next 5 years. The congregation were asked to prayerfully consider supporting this vision financially. We are pleased to report that this financial support was received. A stewardship update is a standing item on the Kirk Session agenda. The Kirk Session is conscious of the inflationary pressures on the church's costs and the need for giving to continue to be reviewed. The 2019 budget includes adequate provision for capital expenditure on the fabric of our buildings to allow us to maintain our properties to the standards expected by ourselves and those who visit our premises. The willing participation of its members in these areas of its work is appreciated by the Kirk Session but is also an area under regular review. Page 3

6 OBJECTIVES AND ACTIVITIES Trustees' Annual Report Charitable Objectives The Church of Scotland is Trinitarian in doctrine, Reformed in tradition and Presbyterian in polity. It exists to glorify God and to work for the advancement of Christ s Kingdom throughout the world. As a national Church, it acknowledges a distinctive call and duty to bring the ordinances of religion to the people in every parish of Scotland through a territorial ministry. It co-operates with other Churches in various ecumenical bodies in Scotland and beyond. ACHIEVEMENTS AND PERFORMANCE "So Christ himself gave the apostles, the prophets, the evangelists, the pastors and teachers, to equip his people for works of service, so that the body of Christ may be built up until we all reach unity in the faith and in the knowledge of the Son of God and become mature, attaining to the whole measure of the fullness of Christ." Ephesians 4: saw a continuation from past years of the work of the church in a wide variety of fields. These include: - maintaining regular service of public worship on Sundays, both morning and evening, and on Wednesdays, when free transport is provided. - extensive work with youth, including weekly children s groups, monthly messy church style TGiF, and the annual Easter Holiday Club which attracted more than 100 children. - support for local, national and international charities, both through voluntary disbursements (see accounts) and through volunteering with, for example, the Care Van and Night Shelter, Safe Families and supplying items to the Basics Bank. In 2017 the kirk session set out priorities for the next five years in our vision document, and we continue to work to develop and fulfil these: Strengthening our prayer life: Prayer takes place in a range of contexts throughout the life of the congregation, including Saturday morning prayer breakfasts, prayer in small groups, the prayer update circulated by , an electronic prayer line and prayer ministry on Sunday mornings. Initiatives in 2018 included establishing both a short weekly prayer meeting focussed on the church and community and quarterly prayer gatherings to pray for revival, the opportunity for prayer at the Davidson s Mains Children s Gala and creating a prayer room on our premises for a few months. Preparing our people: We seek to equip our people to live out their faith both when we are gathered and when we are scattered. This in part takes place through teaching at both morning and evening services as well as through the small groups. In 2018 we developed a new pattern for our evening services which includes discipleship training on two evenings each month, as well as a monthly focus on mission. Other opportunities for training and equipping included running an Alpha course, and encouraging our young people to develop leadership in worship and in leading SU. Page 4

7 Trustees' Annual Report Opening our doors wide: A major development within the church building saw the ceiling replaced for safety reasons and new seating introduced to improve flexibility and accessibility. We celebrated 175 years of our congregation with a special weekend involving an exhibition, meal and worship service which were appreciated by the congregation and wider community. The weekend also included a successful financial appeal which was divided between our ceiling repair and Ferrywell Youth Project. The Sycamore Tree café remains a very important ministry to the community, and in 2018 we employed a new café manager and set up new office space, the café base, to resource the café. TGiF, a monthly messy church style event, continues to attract families. Gathering in small groups: Small groups are an increasingly important part of both our discipleship and our pastoral care, and so in 2018 we created a Small Groups Ministry Area led by Ken and Caroline Dickson and Stephen Ashforth. This has brought greater co-ordination and focus to the small groups.. Blessing our community: In 2018 we made the decision to use funds from a significant legacy to employ a community worker, and Sean Carnochan was appointed at the end of November. Other initiatives in 2018 included support (financial and personnel) of local charity Ferrywell Youth Project and of Bethany Christian Trust. We have a good relationship with local schools, including links with the SU Groups, the primary school coming to the church at Christmas, Easter and Harvest, and members of the congregation reading with school children. We were able to host Future DMS, a local community review, in our halls, and took part in both the local gala and the local Christmas lights event, when our minister was invited to share the Christmas story. Fostering wholeness: A major development in 2018 was the opening of Oasis Wellbeing Centre to offer counselling and prayer ministry to those in the community and beyond. A great deal of effort went into getting the building ready, and Oasis is now staffed by Gail Rose, head, and a volunteer team. It is currently operating at capacity. Volunteers Volunteers and staff: Our staff team comprises the minister, Head of Oasis, community worker, café manager, office manager, church officer and kitchen and general assistant. Across all aspects of our church life, volunteers play an essential part and the kirk session is very grateful both to our employees and all the many dedicated volunteers for their contribution to the work of Christ s kingdom. FINANCIAL REVIEW The congregation continues to support the work of our church through giving to fund operating costs, internal projects and support of third party charities whilst ensuring the financial reserves of the church are maintained. Offerings for 2018 increased compared with 2017 by 30% primarily due to a one off donation of 40,000 (8% excluding it) and continue to be enhanced through income from the use of premises. The 2019 approved budget forecasts a significant planned expenditure vs income due to additional fabric and maintenance works. The additional funds will be met from reserves. Funds raised from congregation for third parties of 17,327 was disbursed. Principal funding sources The church receives its funding from church members by way of weekly offerings and Gift Aid donations. Page 5

8 Trustees' Annual Report Results for the year Per the Statement of Financial Activities on page 9, the church reported Net Income (i.e. a Surplus) for the year of 50,629 (31 December Deficit 2,928). At 31 December 2018, the church had total funds of 832,757. Reserves policy It is the Trustees policy to hold reserves of approximately three months expenditure including designated funds. At the year end the Church held unrestricted (general and designated) funds of 815,189 of which 495,738 was represented by fixed assets, 15,000 for Fabric projects, 15,000 for Equipment Replacement projects and 206,000 had been set aside in a designated legacy fund. The available cash funds of 302,911 represents approximately twelve months expenditure. The Church also held 17,568 of restricted funds which have been provided for the purposes specified in Note 18. Page 6

9 Trustees' Annual Report STATEMENT OF TRUSTEES' RESPONSIBILITIES The charity Trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in Scotland, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 and the provisions of the charity's Constitution requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 and the provisions of the charity's Constitution. They are also responsible for safeguarding the assets of the charity and hence for 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 charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Independent examiner The Trustees recommend that David Jeffcoat, FCCA, a partner in Alexander Sloan, Accountants and Business Advisers, remains in office as independent examiner until further notice. This report was approved by the Trustees on 12 March 2019 and signed on their behalf by Flora Johnston Session Clerk Page 7

10 Independent Examiner's Report to the Trustees on the Unaudited Financial Statements of. I report on the financial statements of which comprise the Statement of Financial Activities, the Balance Sheet and the related notes. Respective responsibilities of Trustees and examiner The charity's Trustees are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended) ("2006 Accounts Regulations"). The charity Trustees consider that the audit requirement of Regulation 10(1) (a) to (c) of the 2006 Accounts Regulations does not apply. It is my responsibility to examine the financial statements as required under Section 44(1)(c) of the Act and to state whether particular matters have come to my attention. Basis of Independent Examiner's report My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeks explanations from the Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the financial statements. Independent Examiner's statement In the course of my examination, no matter has come to my attention 1. which gives me reasonable cause to believe that in any material respect the requirements: to keep accounting records in accordance with Section 44(1)(a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations, and to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations have not been met, or 2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached. David Jeffcoat, FCCA Partner Alexander Sloan Accountants and Business Advisers Date: Page 8

11 Statement of Financial Activities Unrestricted General Designated Restricted funds funds funds Total Total Note Income from: Donations 2 332,684-4, , ,548 Charitable activities 3 1, ,608 1,440 Other trading activities 4 40, ,529 40,006 Investment income 5 2, ,008 1,977 Other income 6 1, ,675 - Total income 378,504-4, , ,971 Expenditure on: Raising funds 7 (18,137) - - (18,137) (22,599) Charitable activities 8 (304,465) (3,215) (5,519) (313,199) (255,734) Total expenditure (322,602) (3,215) (5,519) (331,336) (278,333) Net (expenditure)/income before gains and losses 55,902 3,215 1,320 51,367 (4,362) Gains and (losses) on investments - unrealised (738) ,434 Net (expenditure)/income before transfers between funds 55,164 (3,215) (1,320) 50,629 (2,928) Transfers between funds (2,927) 16,073 (13,146) - - Net movement in funds 52,237 12,858 (14,466) 50,629 (2,928) Reconciliation of funds Total funds brought forward 513, ,423 32, , ,056 Total funds carried forward 565, ,281 17, , ,128 The Statement of Financial Activities includes all gains and losses in the year. All income and expenditure derive from continuing activities. The notes on pages 11 to 25 form an integral part of these financial statements. Page 9

12 Balance Sheet as at 31 December Notes Fixed assets Tangible assets , ,844 Investments 12 20,162 20, , ,744 Current assets Debtors 13 20,643 11,304 Cash at bank and in hand 302, , , ,099 Liabilities Creditors: amounts falling due within one year 14 (6,697) (6,715) Net current assets 316, ,384 Net assets 832, ,128 The funds of the charity Unrestricted funds General funds , ,671 Designated funds , ,423 Restricted funds 18 17,568 32,034 Total charity funds 832, ,128 The financial statements were approved and authorised for issue by the Trustees on 12 March 2019 and signed on their behalf by Flora Johnston Session Clerk Andrew Milburn Church Treasurer The notes on pages 11 to 25 form an integral part of these financial statements. Page 10

13 Notes to the Financial Statements 1. Accounting policies 1.1. Basis of preparation and Statement of Compliance The financial statements are prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant Notes to these financial statements. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their Accounts in accordance with Financial Reporting Standard 102 (effective January 2015), the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations The principal accounting policies adopted in the preparation of the financial statements are set out below. The charity meets the definition of a public benefit entity as defined by FRS 102. The Trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern Fund accounting Funds are classified as either restricted funds or unrestricted funds, defined as follows. Restricted funds are funds subject to specific requirements as to their use which may be declared by the donor or with their authority or created through legal processes, but still within the wider objects of the charity. Desgnated funds are funds which the Trustees have set aside for a specific project. Unrestricted funds are expendable at the discretion of the Trustees in furtherance of the objects of the charity. If parts of the unrestricted funds are earmarked at the discretion of the Trustees for a particular purpose, they are designated as a separate fund. This designation has an administrative purpose only and does not legally restrict the Trustees discretion to apply the fund Incoming resources Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably. Page 11

14 Notes to the Financial Statements 1.4. Donations and legacies Donations are recognised when the charity has evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably. Entitlement usually arises immediately upon receipt, however, in the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period. Legacy gifts must be recognised when it is probable that it will be received. This is normally following the granting of confirmation, when the administrator/executor of the estate has communicated in writing both the amount and settlement date and any conditions attached to the legacy are either within the control of the charity or have been met. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the charity Investment income Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank Gift Aid Income tax recoverable on Gift Aid donations is recognised when the respective donation has been recognised and the recoverable amount of income tax can be measured reliably; this is normally when the donor has completed the relevant Gift Aid declaration form. Income tax recoverable on Gift Aid donations is allocated to the same fund as the respective donation unless specified by the donor Expenditure Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured or estimated reliably. Liabilities are measured on recognition at historical cost and then subsequently measured at the best estimate of the amount required to settle the obligation at the reporting date. The exception is that certain financial instruments must be adjusted to their present value; these include financial liabilities where settlement is deferred for more than 12 months after the reporting date. All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings. Page 12

15 Notes to the Financial Statements 1.8. Expenditure on Charitable Activities Expenditure on charitable activities includes all costs incurred by the charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities. The costs of charitable activities presented in the Statement of Financial Activities includes the costs of both direct service provision and the payments of grant awards if applicable Grant expenditure Grants payable are made to third parties in the furtherance of the charitable objects. The award of a grant is recognised as a liability only when the criteria for a constructive obligation are met, payment is probable, it can be measured reliably and there are no conditions attaching to its payment that limit recognition. In the case of an unconditional grant offer, this is accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the one-year or multi-year grant. Grant awards that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled condition attaching to that grant is outside of the control of the charity Taxation is recognised as a charity for the purposes of applicable taxation legislation and is therefore not subject to taxation on its charitable activities. The charity is not registered for VAT and resources expended therefore include irrecoverable input VAT Pensions The pension costs charged in the financial statements represent the contribution payable by the charity during the year. See also Note Financial Instruments The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at the carrying value plus accrued interest less repayments. The financing charge to expenditure is at a constant rate calculated using the effective interest method. Page 13

16 Notes to the Financial Statements Tangible fixed assets and depreciation The charity has the right to occupy and use for its charitable objects certain tangible fixed assets, including the Church and halls, the titles to which are vested in Trustees for the congregation subject to the regulation and direction of the General Assembly of the Church of Scotland as regards the management and disposal of the properties/proceeds. Expenditure incurred on the repair and maintenance of these assets is charged as resources expended in the Statement of Financial Activities in the period in which the liability arises. The Manse is owned by and is included in the financial statements at estimated market value. Fixed assets (excluding church buildings) are stated at cost less accumulated depreciation. The costs of minor additions or those costing below 1,000 are not capitalised. Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows: Feuhold buildings - No depreciation is charged on the Manse as the residual value is not considered to be materially different to the carrying value. Fixtures, fittings and equipment years Building improvements 5 years Investments Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market value. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year. Fair value is deemed to be market value Leasing Rentals payable under operating leases are charged against income on a straight line basis over the lease term Debtors Trade and other debtors are recognised at the settlement amount due after any discount offered. Prepayments are valued at the amount prepaid after taking account of any discounts due Cash at Bank and in Hand Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account Creditors and Provisions Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. Page 14

17 Notes to the Financial Statements Judgements and estimates In preparing the financial statements, the Trustees are required to make estimates and assumptions which affect reported income, expenses, assets, and liabilities. Use of available information and application of judgement are inherent in the formation of estimates, together with past experience and expectations of future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates. 2. Donations and Legacies Unrestricted Restricted Total Total General Designated Funds Open offerings 230,706-2, , ,611 Tax recovered on Gift Aid 46,789-1,250 48,039 38,393 Legacies 55,189-55,189 12, ,684-4, , , Income from charitable activities Unrestricted Restricted Total Total General Designated Funds Wedding and funerals Sunday coffee , ,608 1, Income from other trading activities Unrestricted Restricted Total Total General Designated Funds Sycamore Tree Cafe 16, ,205 16,069 Use of premises 24,324 24,324 23,937 40, ,529 40,006 Page 15

18 Notes to the Financial Statements 5. Investment income Unrestricted Restricted Total Total General Designated Funds Dividends received Interest received Deposit interest 1,214 1,214 1,647 2, ,008 1, Other income Unrestricted Restricted Total Total General Designated Funds Insurance income 1, ,675-1, , Expenditure on raising funds Unrestricted Restricted Total Total General Designated Funds Sycamore Tree Cafe expenses 18, ,137 22,599 18, ,137 22,599 Page 16

19 Notes to the Financial Statements 8. Expenditure on charitable activities Local Ministries Unrestricted Restricted Total Total General Designated Funds Disbursements (Note 23) 13, ,700 14,200 Wages and salaries 67, ,850 57,726 Minister's expenses 2, , Oasis centre expenses - - 5,519 5,519 1,278 Repairs and maintenance 51, ,287 11,911 Other building costs 20, ,781 20,412 Church office expenses 11, ,074 11,560 Council tax 3, ,252 4,427 Organ & music 1, ,212 1,073 Ministries & mission allocation 117, , ,045 Presbytery dues 3, ,545 2,243 Pulpit supply Minibus 2, ,216 2,273 Independent examination 1, ,680 1,830 Other expenses 6, ,603 6,007 Depreciation on building improvements - 3,215-3,215 - Depreciation on FF & equipment 1, ,125 1, ,465 3,215 5, , ,734 Page 17

20 Notes to the Financial Statements 9. Employees Number of employees The average number of employees during the year were: Number Number Employment costs Wages and salaries 73,229 69,267 Social security costs 1, Other pension costs 3,656 3,122 78,778 73,055 There were no employees who received remuneration of over 60,000 in the period. All Church of Scotland congregations contribute to the National Stipend Fund which bears the costs of all ministers' stipends and employer's contributions for national insurance, pension and housing and loan fund. Ministers' stipends are paid in accordance with the national stipend scale, which is related to years of service. For the year under review the minimum stipend was 27,044 and the maximum stipend (in the tenth and subsequent years) 33, Trustees' remuneration and reimbursed expenses Expenses to the sum of 5,873 (2017: 3,954) were paid by the church on behalf of our minister covering council tax and telephone costs for the manse and travelling expenses during the year. During the year 2018, no other trustee received reimbursement of expenses incurred. During the year a total of 30,945 (2017: 33,850) was donated to the congregation by trustees. Page 18

21 Notes to the Financial Statements 11. Tangible fixed assets Furniture and Land and Building Equipment buildings improvements Total Cost At 1 January , , ,545 Additions 2,161-16,073 18,234 At 31 December , ,000 16, ,779 Depreciation At 1 January , ,701 Charge for the year 1,125-3,215 4,340 At 31 December ,826-3,215 90,041 Net book values At 31 December , ,000 12, ,738 At 31 December , , ,844 The Manse was revalued in January 2015 and is included in the accounts at market value. The trustees are of the opinion that the market value remains 475,000. Church 12. Fixed asset investments of Scotland Growth Fund Total Fair value (market value) At 1 January ,900 20,900 Revaluations (738) (738) At 31 December ,162 20,162 Net book values At 31 December ,162 20,162 At 31 December ,900 20,900 Investments at cost 15,791 15,791 Page 19

22 Notes to the Financial Statements 13. Debtors Other debtors Gift Aid debtor 19,000 9,000 Prepayments 1,643 1,604 20,643 11, Creditors: amounts falling due within one year Other creditors Accruals and deferred income 6,697 6,262 6,697 6, Analysis of net assets between funds Unrestricted General Designated Restricted Total funds funds funds funds Fund balances at 31 December 2018 as represented by: Tangible fixed assets 482,880 12, ,738 Investment assets 20, ,162 Current assets 69, ,423 17, ,554 Current liabilities (6,697) - - (6,697) 565, ,281 17, ,757 Page 20

23 Notes to the Financial Statements 16. Unrestricted General Funds Gains on 1 Jan '18 Income Expenditure investments Transfers 31 Dec '18 The General Fund 513, ,504 (322,602) (738) (2,927) 565, , ,504 (322,602) (738) (2,927) 565,908 Purposes of General Funds The General Fund Encompasses all income and expenditure relating to the primary activities of the church, other than those for which funding is restricted or designated. 17. Unrestricted Designated Funds 1 Jan '18 Income Expenditure Transfers 31 Dec '18 Sunday School Fund Designated Fabric Fund 15, ,000 Legacy Fund 206, ,000 Designated Equipment Replacement Fund 15, ,000 Oasis Centre Building Improvement Fund - - (3,215) 16,073 12, ,423 - (3,215) 16, ,281 Purposes of Designated Funds Sunday School Fund The Trustees have set aside funds for disbursement on behalf of the Sunday School. Designated Fabric Fund The Trustees have set aside funds for the maintenance of the church property. Legacy Fund The Trustees have set aside funds from unrestricted legacies towards future projects. Designated Equipment Replacement Fund The Trustees have set aside funds for the purchase of audio visual and music resources for use in worship. Oasis Centre Building Improvement Fund The Trustees have made building improvements to the cottage used for the Oasis Wellbeing Centre. Page 21

24 Notes to the Financial Statements 18. Restricted funds 1 Jan '18 Income Expenditure Transfers 31 Dec '18 Benevolent Fund 4, ,274 Legacy Fund 13, ,294 Oasis Centre 14,466 4,199 (5,519) (13,146) - 32,034 4,199 (5,519) (13,146) 17,568 Purposes of restricted funds Benevolent Fund This is a fund managed by the minister to enable financial support to be given within the parish when needed. Legacy Fund A fund created to support specific purposes of legacies received. Oasis Centre A legacy and other donations were left towards the Oasis Centre to support the set-up and on-going running costs of the centre. 19. Financial commitments At the year-end, the charity had total commitments under non-cancelleable operating leases as follows: Other Equipment Within one year 1,784 1,734 Within one to five years 3,568 5,352 Total 5,352 7, Related party transactions There were no related party transactions in the reporting year requiring disclosure, other than that noted in Note Pension costs The pension charge represents contributions due from the charity and amounted to 3,656 (2017-3,122). Page 22

25 Notes to the Financial Statements 22. Collections for Third Parties Tear Fund 2,339 1,570 Bethany Christian Trust Ferrywell Project 7,738 - MAF Mary's Meals Scripture Union 938 4,877 Youth Weekend 3,703 - Holiday at Home Events Edinburgh Street Pastors CAP Debt Centre - 1,290 Education, Pastoral and Youth Other ,327 10,540 Collections for Third Parties are not accounted for in the financial statements as funds raised on behalf of third parties are remitted to the organisation and the church has no control over the use of these funds. Page 23

26 Notes to the Financial Statements 23. Disbursements OMF International 2,000 2,000 EMMS Edinburgh 2,000 - Try Praying Tear Fund Pacific Partnership Trust 2,000 2,000 Fresh Start (Edinburgh) 1,500 1,500 Healthlink360 2,000 2,000 Scripture Union Scotland 3,000 3,000 Ferrywell Project - 2,000 Individuals ,700 14,200 Disbursements to organisations are accounted for as Expenditure (see Note 8) as the church has control over the funds and members of the Kirk Session decide which organisations are sent disbursements. 24. Financial Instruments Financial Assets Financial assets measured at fair value 20,162 20,900 Financial assets measured at amortised cost 321, , , ,395 Financial Liabilities Financial liabilities measured at amortised cost 6,697 6,715 Financial assets measured at fair value include the investment portfolio. Financial assets measured at amortised cost include cash at bank, trade debtors, other debtors and accrued income. Financial liabilities measured at amortised cost include trade creditors, other creditors and accruals. Page 24

27 Notes to the Financial Statements 25. Statement of Financial Activities for the year ended 31 December 2017 Unrestricted General Designated Restricted 2017 funds funds funds Total Income from: Donations 214,554-15, ,548 Charitable activities 1, ,440 Other trading activities 40, ,006 Investment income 1, ,977 Total income 257,977-15, ,971 Expenditure on: Raising funds (22,599) - - (22,599) Charitable activities (254,356) - (1,378) (255,734) Total expenditure (276,955) - (1,378) (278,333) Net income/(expenditure) before gains and losses on investments (18,978) - 14,616 (4,362) Other recognised gains/(losses) Gains/(losses) on investments - unrealised 1, ,434 Net income/(expenditure) (17,544) - 14,616 (2,928) Net movement in funds (17,544) - 14,616 (2,928) Reconciliation of funds Total funds brought forward 531, ,423 17, ,056 Total funds carried forward 513, ,423 32, ,128 In accordance with the Charities Statement of Recommended Practice (FRS 102), comparatives for each class of funds are required for each line on the Statement of Financial Activities (SoFA). The note above illustrates the SoFA for the year to 31 December Page 25

28 The following pages do not form part of the statutory accounts.

29 Detailed Income and Expenditure Account Income Donations Open offerings 233, ,611 Tax recovered on Gift Aid 48,039 38,393 Legacies 55,189 12, , ,548 Income from charitable activities Wedding and funerals Sunday coffee ,608 1,440 Other trading activities Sycamore Tree Cafe 16,205 16,069 Use of premises 24,324 23,937 40,529 40,006 Investment income Dividends received Interest received 97 2 Deposit interest 1,214 1,647 2,008 1,977 Other incoming resources Insurance income 1,675-1,675 - Total income 382, ,971 Total expenditure (331,336) (278,333) Gains/ (losses) on investments (738) 1,434 Net (deficit)/ surplus for the year 50,629 (2,928)

30 Schedule of Expenditure Expenditure Costs of Raising Funds Sycamore Tree Wages 10,928 15,329 Sycamore Tree Cafe expenses 7,209 7,270 18,137 22,599 Charitable activities Staff costs Wages and salaries 62,301 53,938 Employer's NI contributions 1, Staff pension costs 3,656 3,122 67,850 57,726 Premises costs Council tax 3,252 4,427 Other building costs 20,781 20,412 24,033 24,839 Running costs Disbursements 13,700 14,200 Oasis centre expenses 5,519 1,278 Organ & music 1,212 1,073 Church office expenses 11,074 11,560 Minister's expenses 2, Other expenses 6,603 6,007 Repairs and maintenance 51,287 11,911 Ministries & mission allocation 117, ,045 Presbytery dues 3,545 2,243 Pulpit supply , ,235 Motor and travel costs Minibus 2,216 2,273 2,216 2,273 Accountancy costs Independent examination 1,680 1,830 1,680 1,830

31 Schedule of Expenditure Depreciation and Gains/Losses Depreciation on building improvements 3,215 - Depreciation on FF & equipment 1,125 1,831 4,340 1,831 Total of charitable activity expenditure 313, ,734 Total expenditure 331, ,333