Stobswell Parish Church of Scotland: Dundee Report and Accounts for the year ended 31 December 2021 Congregation No: 291774 Scottish Charity No: SC000384 Contents Page Contents Trust¢¢s' R¢p)rt Report of the Independent Exatniner Statement of Financial A¢tiviti¢s Balance Sheet io Accounting Polici¢s Notes to the Accounts ' 13-21 ApFendix I 22 Stobswell Parish Church of Scotland: Dundee Trustees, Report Year ended 31 December 2021 The trustees pr&8ent their annual repN)rt aTrl fiDancial statements of the charity for the year ended 31 Decemt*r 2021. The financial statements have been Eyepated in ￿OrdanCe with the accounting wlicie5 S¢t out on pages I l and 12 and comply with the Ge￿al A&sembly Regulations for Congregational Finance, th¢ Charities and Tn￿ Investment (Scotland) Act 2(M)5. the Clwities Accounts (Scotland) Regulatio￿$ 2006 (as amended) and Accounting and ReFK)rting by Chariti￿. Statement of Recomm¢nded Practice applicable to chaTilies preparing th¢ir accounts ID accordance with the Financial Rep)rtiDg Stsndard applicable in the UK and Republic of Ireland publish￿ on 16 July 2014. Objectives and Aetivitie8 The Church of ScotlAnd is Trinitsri8n in doctrine. Refornled in tradition and Presbyterian in polity. It exists to glorify G(Kl and to work for th¢ advancement of ChTiSt's Kingdom throughout th¢ 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 l¢rritorial ministy. It CTrO￿ates with other Churches in vario￿$ ecumen1￿1 bodi¢s in Scotland and beyond. Stobswell Parish Church is a friendly, welcoming churcb famity, worshipping and SUPE￿ our community. Under norn￿1 Circumstanc￿ four Communion services would k held annually along with a memoriaI service during AdvrnL In 2021 the Covid pndcnuc cOntin￿d to have on effect LM)th I(￿lY and nationally. Opfflung the church building was conditional on risk assesment and the strict application of regulations relating to sanitising. wearing of m&%ks. social distsncing and limiting the numttr of people attending. The church halls r¢mained out of use. In February, th¢ Kirk Session voted Unan1￿￿81Y that Stobswcll Church depart from the Church's practice in r¢lation to human sexuality in rcsped of the vacancy at Trinity in defetred linkage with Stobswell. In Marcty ￿￿'ntiMated thaL after 14 years &s our minister, he w&8 leaving Stobswell to b¢come Associate m]￿StLr al %1 C()IuTnba's Church of Scotland in Pont Street London. Durin the short peri(Ml of OUT vacanCY,￿lbecarne Interim Moderator until, in July inducted at Trinity ChurLh and inlrodu¢¢d to S￿b5Well Church as minister of the Link"cd Lharg¢. tn May 2021 ￿ retired as Presbytoy Elder after 13 years of diligent serviL%. was nominat￿ p￿$bY￿ Elder. . In line with Presbytery's previously ¢xpr¢sscd prefere￿% for a union rather than a linkage, joint Kirk Session mtttings took plac¢ with the Faith Nurture Forum anl after lengthy discussio￿ a basis of union was drawn up. Inevitably, th¢ decision to move to Trinity Church and for Stobswcll to cease to Et a worship church has been difficult and distressing for many in the congregation. The Basis of Union was presented to Prcsbytery and the original intention was thaL subject to approval by 121, union would tske place at the end of December 2021. Unfortunately. pennission for union has E¢en withheld by the Presbyt¢ry Mission Planning Implementation Group until Dundee Presbytery has presented the narrative for their Mission Plan. Dundee Presbytery has placed churches into 9 gmupings to work togcther to plan allocation of ministers and explore how the church will address its overall Mission Plan. Wc are part of the City Centre Grouping, tog¢th¢r with Trinity. St Andtews linked with Mea(k)wside St Paul's. The Steqile, St David's High, St Mary's and Coldsid¢ churches. Meetings of church represeniatives have been taking pl&e to create a plan for mission over the coming 5 years with thc draft plan for year I, exttcted by the end of March 2022. now defeTred. Meanwhile, Servi￿ have E£en held alternately in Trinity and Stobswell but, it w&s decided that Stobswell would close ￿ the end of Febnwy 2￿22 wben iK)th ￿n￿10Th8 would worsbip togcthcr in Trinity ChurclL Stobswell Parish Church of Scotland: Dundee Trustees, Report (Cont) Year ended 31 December 2021 Stobswell halls would remain open for users. In preparation for the proposed Unlo￿ four mcmbcrs from each Kirk Session have hwl meetings with the ministr to dis£uss futh amngcments and a representative from CARTA h&$ bcen approached to ￿viSe on relocating artefacts from Stobswell to Trinity. We have been . approach¢d by The Grace Church and by Stobswell Fonlln together with Maryfield Regeneralion Tea regarding leasing the Stobswcll building and are ongoin8. Aehievements and Perfornjance Although the church is still under some restrictions we hav¢ been able to conlinue with our charity cfforts. Rcmarkably, we exceeded our target of £1, 100 to ￿ sent to Sialkot through the Smartie Challcnge. Onc¢ more, over 250 Ix)xes were delivered to Blythswood for distribution in Eastern Europe and we were able to m8k¢ a substantial donation to Christian Aid. L¢)cally, donations were made for thc Discovery Fcd Bank an4 tog¢th¢r with Trinity, donations of toys w¢r¢ giv¢n to Boomerang. In Novem1￿r we held a Remembrane2 Service and in DecernEKr the annual M¢morial Service took pla￿. Our minister has been in contsct with Morgan ALYdemy, & Roya] Engineers Association. St John's Ambulanc¢ and 205 Field Squadro We had a fi￿h¢r Zoorn mceting with our Wald¢nsiao fri¢nds in Gori7iL S￿ly, their Pastor. is leaving this summer to live in CKrnwiy, they will ir without a pastor pK)ssibly for two years uring which time their worship will lcd by lay preaclm. They send their g[tttln￿ and prayer8 and w¢ look forward to introducing them to our friends in Trinity Church. There will bc many difficulties to overcome and compromises made before our two con￿rgatIOnS come togeiher under the name of Stobswell Trinity Church with wien￿ and Under&￿ill8, goodwill and faith in (iod, we will continu¢ to support ow community and our church. Financial Review As a general rule the congregation's principal ongoing sources of funding are its mcmbcrs. offering& enhanced by Gift Aid where appropriate, together with income derived from the letting of its halls for wider community purtK)s¢s. As in 2020, 2021 has proved an exception to that 'general rul¢, due to the continuing impact of Covid-19 on ar￿ of the charity's activiti¢s, leading to the enforced closure of the Church buildin8 for public worship and the unavailability of thc hall spaccs for both congregational and comtnunity activity, There w&8 a matked reduction in offerings for genernl purposes, together with ass(Kial¢d Gift Aid, from £53,345 in 2020 to £45,001. I￿rne frorn thc letting of our properties for wider community purposes, however, fell from £4,456 in 2020 to £1.480. The trustees rmin commitied in their efforts to raise awareness of th¢ facilities available and to encournging previous I￿11-ll$￿$ back now that the Covid precautions have Eten relaxed. General Fund c￿ndituTe for 2021 amounted kn £60,365 comFwed with £74.390 in the previous yaqr. Th¢ principal contributing factor w&$ a rcduction of some £IO,(KKI in our Ministri¢s and Mission L￿ntributiOn due to support offered from central chU￿h funds for which the tr￿steeS were tsuly wfiJL Stobswell Parish Church of Scotland: Dundee Trustees, Report (cont) Year ended 31 December 2021 Financial Review (cont) Overall. our Congregational (General) Fun(L dealing onIy with r¢cuffing incom¢ and expenditure, sustained a deficit of £13,156 (2020: £15233) which ]]as been covered by a transfer from the General Reserve Fund. The trustxs are acutely aware that ongoing annual deficits of this magnitude cannot be sustain¢d, bul remain buoyed by the fact thaL had the ability to let hall space continued thToughout th¢ year at a l¢vel similar to years prior to the onset of Covid, this deficit would, in all PTobability, hav¢ been sigDificantly lower. We are f0rttll￿te to have had reserves available to absorb this deficit. Conscious that recurring annual deficits have put pressu￿ on the cash and bank balances available for general congregational purposes. the trl￿eeS were able to recover £3,493 of fabric-related expenditur¢ fTOm funds held on behalf of th¢ congregation by the Church of Scotland General Trustees. Fund raising activities continued to provid¢ tbird paty cbaritable donations, as detailed in note 16 on page 21. Given the Circum￿C¢S pr¢vailing throughout the year, the totsl of £2.472 (2020: £2.499) is a very creditable result. Investment Policy and Performance The charity's investment portfolio is managed using expertise available within the body of trustees, to provide a mix of income and capital growllL The specific investments used are listed at not¢ 10 on page 16. While the trustees are grateful to all fornier members who have seen fit to pernian¢ntly endow the clwity over many years, the ongoing challenge of achieving a rea￿b]e income while maintsining the capital value of these endowments proves difficult. The market value of all OUT investments at the year-end w&9 £266,874 (2020. £243.032) and the incom¢ arising during the year w&8 £5,120 (2020: £6,237). The unrealis¢d net gain on the value of the portfolio over the year amounted to £23,842 {2020: £16.591) but markets continue to be volatile and th¢ tThste¢s are v¢ry conscious that th¢ value of iniTestments can fall as well &s rise. As referred to in the foregoing financial review, the income flow from the letting of the charity's buildings all but ceased in 2020 and 2021 due to the closure required to comply with legislatioll to combat the spread of Covid-19. An income of £1,480 from this source compared with the previous y¢ar's income of £4,456. Risk Management The tn￿te¢S assess, regularly, the major risks to which the charity is exposed, in particular those related to its operations, finances (including its investments) and reputation and manage those ￿ follows: The age profile of our congregation presents an increased risk from decreasing income through offerings and members are encouraged to consideT also the wssibility of giving in other ways. Capital risk: mitigated by the tTUStees' use of a diversified portfolio of investments. Liquidity risk: mitigated by the trustees. consideration of the timeframe for investing and approprAate asset classes. Market ri5k.' mitigated by the trustees, use of investment vehicles whlch are closely regulated andlor where compensation schemes aTe in place. Valuation risk: market price fluctuations may sometimes involv¢ the need to hold investments pending recovery. The trust¢es consid¢r valuation risk alongside liquidity needs and diversification of the investment portfolio. Stobswell Parish Church of Scotland: Dundee Trustees, Report (cont) Year ended 31 December 2021 Risk Mydnagement (cont) Cover is sought for insurable risks as appropriate. The trustees take seriously the duties and r¢sponsibilities placed upon them with regard to the protection of vulnerable groups. Each of the above matters is considered r¢gularly by the Kirk Session andlor Congregational Board. Reserves Poliey The In￿teeS review this p)licy annually with the aim of being in the position to hold 'free' reserves equivalent to 12 months of General Fund expenditure. To achieve this axm at D￿ember 2021 required a balance of 'free' reserves of at least £60,000 whereas, due to s￿e of the congregation's manse. the balance at that date was £262,305 (2020.. £21,449). At the year end, the congregation's unrestrictrd fimds r¢fl¢cted an ov¢rall balance of £428,457 (2020.. £172,939) comprising £163,682 (2020: £149,020) designated for particular purposes and £2,470 (2020.. £2,470) attributable to congregational organisations. in addition to the balance of 'free' reserves referred to aEM)ve. The inCre￿d balance on unrestricted fim(L8 w&$ due almost entirely to significant unrealised gains attributabl¢ to investments linka4 io the Fabric Fund and WH Fleming Bequest in addition to the manse sales proceeds. Additionally> at 31 December 2021 funds with balances totslling £29.063 {2020: £28,813) were held for the restricted purposes detsiled on page 20, to k exp*nded &8 appropriate opportunities arise, with pemwient ¢ndowincnt funds of £124,970 (2020: £112,837) held ￿ provid¢ an inrA)me in support of various funds. Structure, Governance and Management The congregation is a registered charity. number SC000384 and is admI￿￿red in accordance with the tern of th¢ Model Deed of Constitution and is subject to the Acts and Regulations of the General Assembly of the Church of Scotland. Members of the Kirk S&8sion and the Congregational Board are the charity trustees. The Kirk Session members are the elders of the church and are chosen from those members of the church who ar¢ considered to have the appropriate 8ifts and skills. The minister, WIK) is a rneM￿ of the Kirk sessio￿ is elected by the congregation and inducted by P￿sbY*ry. The Congr¢gational Board is apwinted from within the congregation and members of the congregation are invited to nominate individuals who are believed to have the skills and commitment to contribute to the management affairs of the Chu￿￿ to become members of th¢ Board. Board Members are then appointcd at th¢ Stated Annual M¢¢ting and s¢rv¢ for a ￿riod of th￿e years after which they must seek re*lection at the next Stated Annual Meeting. The Congregation81 Board is chaired by the minister and meets eight times in a year. Certain r¢s￿nsibl11tieS are delegat¢d to sub-conimittees as appropriate. The Kirk Session which meets six times a year is resFrf)nsible for Spiritt￿ affairs within the church. On Sund8y 18" April 2021, following Sunday wotship, our Minister, intimated that he would be leaving Stobswell PaTish Church on 30 June to take up epusto stsuLiate Minister at St Columba's Church of Scotland. Pont Streel London. Men]bers of the congregation offered their congrattdations on this appointment and eXpr￿sed their good wishes for the future. Stobswell Parish Church of Scotland: Dundee Trustees, Report (cont) Year ended 31 December 2021 Reference and Administrative Inforniation Charlty name: Stobswcll Parish Church of Scotland: Dund Charlty reglstration number: SCOC(1384 CoDgregationAI referen¢¢ number: 291774 Prlnclpal offlce: 172 Albert Strect Dundee, DD4 6QW Trujtets: Airk ,fv.f.flOII [(*) Retired 31 October 2021] Prlnclpal Offlce-bearerj Minister: Intcrim Moderator: 8cssion Clerk: Clerk to the Board: Church Treasur¢r: IndepeDdeDt Ewnlner Prln¢ipal Banker8 Bank of Scodand PO Box 1000 BX2 ILB Stobswell Parish Church of Scotland: Dundee Trustees, Report (cont) Year ended 31 December 2021 Trustees, Responsibilities in RelatioD to the Financial Statements The charity tsijstees are responsible for prepry a In￿, annual reFM)rt and financial statements in accoTdance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to cbarities in Scot]and requires the charity trustees to prepare financial statements for each year which show a true and fair view of the stale of affairs of the charity and of the incoming resources and application of resources, of the charity for that peri(xl. In preparing the financial statements, the trustees are required to: select suitable accounting policies and then apply them consistently. obs¢rvc the method and principles in the applicable Charities SORP. make judgements and estimates that are reasonable and prudent. statc whether applicable accounting standards and statements of recommended practice have been followed, subject lo any departures disc105cd and explain¢d in th¢ fuw)cial statements. prepare the financial statements on the going conL%m basis unless it is inappropriate to Presume that the charity will continue in operational existenL%. The tn￿teeS are responsible for keeping proper accounting records which di￿105¢ with rcasonablc accuracy at any time the financial EX)Sition of the charity and to enable them to ensure that the financial statements Comply with the Charities and Trustee Invesknent (Scotland) Act 2(M)5 and the Charities Accounts (Scotland) Regulations 2006 (as amend¢d). They are also responsible for safeguarding the assets of the charity and henee for tskin8 reasonable steps for the prevention and dctertion of fraud and other 1￿C8u1arltie$. The trustees responsible for the n￿intenance and integrity of the charity and fllwicial infOrn￿tIon on the congregation's website. Legislation in the United Kingdom governing the preparntion gnd dissemination of financial statements May differ from legislation in other jurisdictions. Approved by the Trustees on 5 June 2022 and signed on their behalf by - S￿$10n Clerk Independent Examiner's Report to the Trustees of Stobswell Parish Chureh of Scotland: Dundee Year ended 31 December 2021 I report on the accounts of the charity for the year ended 31 December 2021 which are set out on pag¢s 9 10 21. Respe¢tive responsibilities of trllste￿ and examiner Th¢ clwity's trustees are responsible for the preparation of th¢ accounts in accordance with the ternis of the Charities and TTUStee Investment {Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). The charlty trustees consider that the audit Tequirement of Regulation 10(1) (a) to (c) of the Accounts Regulations does not apply. It is my TespoL8ibility to examin¢ the accounts as required under section 44(1) (c) of th¢ Act and to state whether particulaT matteTS have come to my attention. Basis of independent examiner's statement My ¢xall)ination is cattied out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations 2006 (as amended). 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 includ&8 consideration of any unusual lten￿ or disclosures in the accounts and seeks explanations from tbe tn￿teeS concerning any such matters. The procedures undertaken do not provid¢ ail the evidence that would b¢ r¢quired in an audiL and consequently I do not express an audit opinion on th¢ view given by the accounts. Independent exarnincr's statement In the cours¢ of my examination, no matter has come to my attention l. which gives me reasonable cause to b¢li¢v¢ thaL in any material respecL th¢ r¢quir¢ments: to keep accounting records in accordance witb Section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations (as amended), and to prepare accounts which accord with the accounting records and Comply with Regulation 8 of tbe 2006 Accounts Regulations (&8 amended) have not been meL or 2. to which, in my opinion, all¢ntion should be drawn in order to enable a proper understanding of the accounts to be reached. 21 November 2022 Stobswell Parish Church of Scotland: Dundee ststement of Flnanclal Aeti ember 2(ni r4ote Unrtstrlcted Funds R¢rtrict¢d Ettdowm¢bt FYnd$ Fuud$ Unrestrlctod Fuhds 2020 Restrleted Fund5 2020 Endowment Fund$ 2020 Tol*l 2(121 Total 2020 Income and ¢ndowments from: Donations und l¢ga¢ie$ Charitable a¢tivitie$ Other trading activities Jnveslln¢nts Other 46241 46241 441 480 5.120 3.658 53.657 672 4.344 3.343 10,113 50 53.707 672 4,344 6,237 10,113 2,678 3,658 216 2226 258 2.636 Total Income 216 308 Expendlture on: Raising ￿ndS Charitsble activities Other 188 59,998 188 59.998 198 74.348 198 75,140 792 TotAI expendlture 792 Net Incom&l¢xp¢ndlture) before gxllls aud loJse3 on Investments Net gain￿(lo$se&) on investments (6,688) 11,834 216 (125) (4246) 23.842 (2.417) 16.822 (484) 2.636 (346) (265) 16,591 12.133 Net inTom¢l(expendhure) 5,146 91 14J59 19.596 14,405 (369) 2290 16,326 Trnn9fers between Funds 179 (190) 7313 250 12.133 19.596 16,553 (37) 16,326 Other retogDlzed galns1(10sses) Gain on disposal of tlldnse 248,305 248J05 N¢t movement In fuDds 255518 250 12.133 267.9)1 16,553 {190) (37) 16,326 R¢eonelllatk)n of funds: Total fjjnds brought forward 172.939 28.813 112,837 314,589 156.386 29.W3 112.874 298,263 Total fun s earried 124970 172939 Stobswell Parish Church of Scotland: Dundee Balance Sheet as at 31 December 2021 Totsl FllDds 2021 Prlor Year 2020. Flxed As*ts: Tangible assets Investments io Totsl A#tl• 243 32 C¥rr¢u¢ AJRts li 1021 314070 4.128 Cash ￿ bank and in hand Tothl Currnlt Awts 316,091 72,453 Li*bllltle• CTeditots fallin8 du¢ within L¥)¢ y¢V Nei Curreot AM•ts Creditors failin8 due mire than one year 12 475 313616 71 57 Net Amets 314 Th¢ tsndi or the ¢h•rSty: Endowment funds Restrided fundj 15 124.970 29,063 428.457 112,837 28.813 In,939 15 Is Totsl d￿rIty 38 Appmved by the TnL8tees on 5 June 2022 and signcd on their behalf by- ession er Clerk to tbe CongreytloD41 Board io Stobswell Parish Church of ScotlaDd: Dundee Year ended 31 Deeember 2021 Accounting Policies The principal acco￿ting tM)licies. which have been applied consistently in the Current and pr¢ceding years in dealing with items which are considered material to the accounts, are set out below. Basis of preparation The fmanciai statements have been prepared in accordance with Accounling and Reporting by Charities: Stat¢m¢nt of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Rewrting Stsndards applicable in the UK and Republic of Ireland (FRSI 02) issu¢d on 16 July 2014 and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the Charities and Trustee Investmcnt (Scot]and) Act 2005 and the Ckwits¢s accounts (Scotland) Regulations 2006 (as amended) Fund ac¢ounting Funds are cl8&8ified as either restricted fimds or unrestricted fimd4 defined &8 follows. Reslricledfynds are funds subject to specific requirements &s to their use which may be declared by th¢ donor or with their authority or created through legal pmcesses. but still within the wider objects of th¢ charity. Endowmeni fvnds are funds which have been given on the condition that the original capitsl sum is not Teduced, but that the income therefrom is used for the putp)se defined in acwrdancc with the objects of the charity. Unrestrlcfedfvndf are cxpendablc at thc discrction of the trustees in furtherance of the objects of the charity. If parts of the unrestricted funds are earniarked at the discretion of the trustees for a particular purpose, they are designated as a separate fimd. This designation has an administrative purpose only and does not legally restrict the trustees, discretion to apply the fun