Scottish Charity No.SC Lennoxtown Free Church of Scotland

Transcription

1 Scottish Charity No.SC Lennoxtown Free Church of Scotland Trustees Report and Financial Statements For the Year Ended 31 December 2015

2 Contents of the Financial Statements for the year ended 31 December 2015 Church Information 1 Page Report of the Trustees 2-5 Report of the Independent Examiner 6 Receipts and Payments Account 7 Statement of Balances 8 Notes to the Financial Statements 9-11

3 Church Information Trustees A list of active Trustees during 2015 is provided in the Trustees Report on Page 2. Address Bankers The Royal Bank of Scotland 129 Kirkintilloch Road Bishopbriggs G64 2LR Solicitors Free Church Solicitor utilised: Simpson & Marwick WS Albany House 58 Albany Street Edinburgh EH1 3QR Independent Examiners Page 1

4 Report of the Trustees The Trustees are pleased to present their report together with the financial statements of the church for the year ended 31 December Status of Charity and Governing Document Lennoxtown Free Church of Scotland is established by Constitution. It is a registered Scottish Charity (No. SC038165). Aims and Affiliation The Free Church of Scotland currently has around 100 congregations in Scotland, as well as two in London and five in North America, and sister Churches founded by mission work in India, Peru and South Africa. The Church also has a full time degree awarding college in the heart of Edinburgh for the training of Ministers and other Christian workers and sustains an extensive Missionary programme relative to the size of the church. Dating from 1843 but with its roots in the Reformation, it owes its distinctive title to its historical struggle to remain free from state interference in its internal affairs. It has close and active relations with many other Reformed churches of Jesus Christ throughout the world and stands firmly in the tradition which accepts the Bible in its entirety as the Word of God and, therefore, derives its forms of teaching, worship, ministry and government from it. The main emphasis of our worship is the preaching of the gospel - the good news of a free and sovereign salvation through Jesus Christ alone. The Free Church of Scotland is a Presbyterian church adhering in its worship and doctrine to the position of the Church of Scotland at the Reformation. There is an explanatory document which explains the origins of the Church and which gives the historical background to the Church coming into being in 1843 and lists documents in which is embodied its constitution. Lennoxtown Free Church of Scotland is a congregation of the national Free Church of Scotland working towards the common aims set out above. The congregation is within the Glasgow and Argyll Presbytery and is authorised by the Church to have a minister paid from the central funds of the Church. The minister of the congregation of some 30 years retired on the 31 st December Whilst the status of the congregation has not changed in October 2015 the Presbytery appointed a Presbytery Worker to undertake the role of providing a full-time ministry to the Lennoxtown congregation. In these circumstances the Presbytery also appoint a full-time minister from another congregation within the Presbytery to provide oversight of the congregation as an Interim Moderator. The Church building is the property of the congregation and is held in trust by locally elected property (or congregational) trustees under the Church s Model Trust Deed. The Manse is privately owned. Trustees and Office Bearers The congregation is governed and administered by elected office bearers (all volunteers) and it s Interim Moderator. The Kirk Session, being the Interim Moderator and elected elders, has responsibility for spiritual oversight, while the Deacons Court, composed of Kirk Session members plus elected deacons, oversees financial and property matters. Under Charity Law, the Deacons Court is deemed to be the trustees of the congregation as those with responsibility for day to day management and control. This is distinct from the role of property (congregational) trustees who are responsible only for holding property in trust. Page 2

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6 Report of the Trustees Appointment of Charity Trustees The Kirk Session exercises its discretion in determining the most appropriate method of electing new Trustees (Elders and Deacons). Any election process must involve the communicant membership of the congregation. There is no fixed term for Trusteeship. Prior to their appointment, new Trustees would have served the Church for some time in various roles and would be familiar with the Church s values, its aims and objectives as well as its day-to-day operations. As part of their induction programme, new Trustees are required to understand their statutory responsibilities as well as the responsibilities of their office within the congregation as elder or deacon. Activities and Achievements As noted in our previous accounts submissions the church buildings are now in excellent condition having earlier, in 2013, been subject to an arson attack that essentially destroyed the building. Being fully insured it has been rebuilt and is in regular use for worship each Sabbath Day and for a mid-week prayer meeting. In 2015 with the appointment of as Presbytery Worker, the opportunity to raise the profile of the church within the community and as a community asset has already seen a number of new activities commence. These have included Praise Nights and a very successful weekly Zero Stress class for needlecraft and fellowship for ladies in the area. Other activities are planned. In relation to congregational activities: It remains the congregation s unanimous determination to continue the work in Lennoxtown as part of the Free Church of Scotland and if at all possible to remain an independent congregation. The Presbytery of Glasgow and Argyll determined that Lennoxtown should become part of the North East Glasgow Team Ministry (NEGTM). This programme has now advanced to provide ministerial cover in all 4 congregations being (Bishopbriggs, Coatbridge, Cumbernauld and Lennoxtown). Both Coatbridge and recently Cumbernauld have full-time ordained ministers in post and Bishopbriggs and in 2015 Lennoxtown have Presbytery Workers in post essentially providing all ministerial duties other than those requiring an ordained minister to administer. In relation to congregational funding: Total income for 2015, including Gift Aid Tax recovered, was 40,345 only very slightly down on the 2014 figure of 40,686. In 2015 the value of Gift Aid recovered was 7,583 some 37% up from the 2014 amount. This additional income is vital to the financial viability of the congregation providing nearly a fifth of our total income. Our total expenditure for 2015 was 29,980. Whilst very significantly less than in the previous year it should be noted that 2014 had a number of significant fabric costs related to concluding the restoration work following a fire in early With the congregation being vacant until October 2015 ministerial supply was provided at the cost of 3,062. With a Presbytery Worker now in post from October 2015 this expenditure line will reduce dramatically going forward. With the congregation now having to cover the expenses of a Manse for the Presbytery Worker some new costs now have to be met such as Rates, Telecom and utility expenses. As noted previously as a consequence of the fire our insurer have demanded fully maintained fire and intruder alarm systems with RedCare contact centre support which whilst expensive certainly do provide a level of surety regarding the wellbeing of the church. However this cost some 1,805 in 2015 up from 1,088 in 2014 as we are now in the first year of annual maintenance costs. Page 4

7 Being technically a vacant charge for a good part of 2015, until the arrival of the Presbytery Worker in October 2015, we were not required to submit the same amount as normal to Central Funds in Edinburgh. In 2015 we sent 18,789 to Edinburgh whereas in 2014 as part of the NEGTM plan we credited 23,467 to Central Funds. However due to the significant demand on pulpit supply in the early part of 2015 Edinburgh do nominally credit us with the value of supply costs so central record indicate that Lennoxtown remitted over 21,000 to Edinburgh. Reserves Results for the year In 2015 we have reported a surplus of income versus expenditure of 10,365. Whilst looking a very health closing balance the reality is somewhat different and the trustees view is that we must continue to rebuild a Fabric Fund balance and to meet direct costs and also increase the fund balance 7,701 was transferred to meet and support the Fabric Fund. The general fund closing balance for 2015 is 5,685 and will be required to meet the new and increased target we have been given for The fabric fund commenced the year 2015 with an opening balance of 14,000. Throughout 2015 fabric expenditure was 2,701 and consisted of new items of equipment which the Kirk Session and Deacons Court considered appropriate to provide a community facility that would not only meet the needs of the church but also attract new folks to join with us or make use of the church. During 2015 the Deacons Court instructed the transfer of 7,701 to the Fabric Fund meeting the above cost but also leaving a year end Fabric Fund balance for 2105 of 19,000. The fire has been a salutary lesson in prudent planning and we must continue to increase the Fabric Fund to provide funds to meet the costs of any unexpected fabric costs associated with the church. Fabric expenditure is reported in the accounts. At 31/12/2015 the combined general and fabric fund current account had a closing balance of 24,685. During the year, the 2014 year end accounts where submitted electronically to the Office of the Scottish Charities Regulator (OSCR) and after processing found to be in order and compliant with the regulations and the 2015 and subsequent year accounts will be processed accordingly. The trustees are satisfied with the level of reserves retained by the charity. On behalf of the Trustees Dated: February 2016 Page 5

8 Report of the Independent Examiners to the Trustees for the year ended 31 December 2015 I report on the accounts of the church for the year ended 31 December 2015 which are set out on pages 7 to 11. Respective responsibilities of trustees and examiner The charity s trustees are responsible for the preparation of the accounts in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations The charity trustees consider that the audit requirement of Regulation 10(1) (d) of the Accounts Regulations does not apply. It is my responsibility to examine the accounts 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 statement My examination is carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeks 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 I do not express an audit opinion on the view given by the accounts. Independent Examiners 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 accounts which accord with the accounting records and comply with Regulation 9 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 accounts to be reached. Page 6

9 Notes to the Financial Statements for the year ended 31 December Accounting Policies Accounting Convention The financial statements have been prepared under the historical cost convention, and in accordance with the Charities Accounts (Scotland) Regulations Basis of financial statements The financial statements have been prepared on a receipts and payments basis. Investments As the accounts are prepared on a receipts and payments basis the investments are included at cost. Market Value of the investments is disclosed within the notes to the accounts. Fixed Assets A statement of the assets held is shown in the notes to the accounts. No depreciation has been applied as depreciation is a non-cash item and therefore should not be included in the receipts and payments account. Receipts and Payments Account For the purpose of the Receipts and Payments account as shown on page 6, funds are defined as follows: Unrestricted funds comprise grants and other income received for the objects of the church without further specified purpose and are available as general funds. Designated funds represent unrestricted funds which have been earmarked by the Trustees for particular purposes. Restricted funds comprise income which has been received for the objects of the church and specified for a restricted purpose within these objects by the donor. Page 9