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2023-10-31-accounts

TRUE JESUS CHURCH IN ELGIN FINANCIAL STATEMENTS

FOR

YEAR ENDED 31 OCTOBER 2023

Charity Number SC000544

WHITELAW WELLS Chartered Accountants

9 Ainslie Place Edinburgh EH3 6AT

TRUE JESUS CHURCH IN ELGIN FINANCIAL STATEMENTS

YEAR ENDED 31 OCTOBER 2023

CONTENTS PAGE Church Board annual report 1 to 4 Independent Examiner’s report to the Trustees Statement of financial activities (incorporating the Income and Expenditure Account) Balance sheet Notes to the financial statements 8 to 15

TRUE JESUS CHURCH IN ELGIN ANNUAL REPORT OF THE MEMBERS OF THE BOARD

YEAR ENDED 31 OCTOBER 2023

The Church Board have pleasure in presenting their report and the unaudited financial statements of the charity for the year ended 31 October 2023.

The financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and Articles of Association, 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 (FRS 102).

OBJECTIVES AND ACTIVITIES

The objectives of the Church are as follows:

These objectives are met through regular meetings for worship where they are preached to the congregation.

Volunteers

Many volunteers give up their time to help out at the church, particularly at weekends and in the evenings. The Board is greatly indebted to these volunteers for their commitment and support.

Grant Making Policy

The Church Board operates a policy to contribute a proportion of its income to the General Assembly of the True Jesus Church (U.K) on an annual basis at a level set by the General Assembly and to other religious organisations as it sees appropriate on an ad hoc basis. The Board reviews the level of the contributions each year to other religious organisations.

ACHIEVEMENTS AND PERFORMANCE

During the year the church met regularly for worship and carried out various activities in pursuit of the above stated aims. Significant highlights, events and developments of note in the year include:

FINANCIAL REVIEW

The net income for the year, which are the operational reserves of the Church, was a surplus of £83,711 (2022: £58,860).

The church received total income of £166,939 (2022: £148,027) and £37,638 (2022: £48,232) was applied in making donations.

1

TRUE JESUS CHURCH IN ELGIN CHURCH BOARD ANNUAL REPORT

YEAR ENDED 31 OCTOBER 2023

At the balance sheet date the unrestricted reserves were £371,989 (2022: £337,777). There were restricted reserves of £222,720 (2022: £173,221) and permanent endowment reserves of £373,796 (2022: £373,796).

Principal sources of funding

The Church receives the majority of its funding from those in the fellowship by way of weekly offerings and from general donations. The church does not organise specific activities for the purpose of raising income.

Reserves Policy

The General Fund represents the free reserves of the church arising from past operating results. The Church Board are satisfied that the balance of the fund approximates to four years’ operating expenditure. The Church Board are aware that they are holding unrestricted funds in excess of those needed, but any decisions on their future use are still to be agreed.

Investment Policy

The reserves are currently held in cash, which the Church Board feel is appropriate given the continuing inherent volatility in the stock market. The Board will keep this policy under review.

Risk Management

The Church Board have assessed the major risks to which the church is exposed, in particular those related to the operations and finances of the members, and are satisfied that systems are in place to mitigate any exposure to the major risks.

PLANS FOR FUTURE PERIODS

The Church plans continuing the regular activities outlined above subject to satisfactory income arrangements.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Status of Charity, Governing Document and Affiliation

The church is an unincorporated association governed by its Rules and Regulations.

The True Jesus Church in Elgin was formed in 1977. It is a registered charity with the Office of the Scottish Charity Regulator and is affiliated to The General Assembly of the True Jesus Church, United Kingdom.

Organisational Structure

The members are any persons baptised in the True Jesus Church in the Elgin area and they are eligible to speak, vote, elect and be elected at the General Meeting of Members. The General Meeting of Members is the highest decision-making meeting. Any decisions made are to be dealt with by the Church Board, and then executed by the Church Executive Committee.

Management and Appointment of the Church Board and other members of the Executive Committee

At the Annual General Meeting of Members up to seven members are elected to form the Church Board and to implement all work plans of the Church.

2

TRUE JESUS CHURCH IN ELGIN CHURCH BOARD ANNUAL REPORT

YEAR ENDED 31 OCTOBER 2023

Each members of the Board serves for a period of three years but is eligible for re-election for any number of terms. All Board members are honorary. Three of the Board members serve as the Executive Committee Members of the three sections: Religious Affairs, General Affairs and Financial Affairs.

Trustees’ Training

The current Members of the Board have held their posts for several years and are fully conversant with the work of the charity. Should a Member of the Board leave between AGMs then the remaining Members of the Board will meet to appoint a new Member of the Board based on their skills and experience. The existing Members of the Board will mentor the new Member of the Board until they are familiar with the day to day workings and aims of the charity, and they will be given the opportunity to contribute fully to any management issues that are brought to the attention of the Board.

REFERENCE AND ADMINISTRATIVE INFORMATION

Charity registration number SC000544

Registered charity name True Jesus Church Elgin

The members of the Church Board

Secretary

Address Lesmurdie Road Elgin IV30 4HP

Independent examiner

Whitelaw Wells Chartered Accountants 9 Ainslie Place Edinburgh EH3 6AT Bankers The Royal Bank of Scotland plc 209 High Street Elgin IV30 1DL

3

TRUE JESUS CHURCH IN ELGIN CHURCH BOARD ANNUAL REPORT

YEAR ENDED 31 OCTOBER 2023

RESPONSIBILITIES OF THE CHURCH BOARD

The Members of the Board are responsible for preparing a trustees’ annual report and 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 requires the charity trustees to prepare financial statements for each year which show 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 the financial statements, the trustees are required to:

The Members of the Board are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). 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 Members of the Board are responsible for the maintenance and integrity of the charity and financial information on the congregation’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Lesmurdie Road Elgin IV30 4HP Date: 5 December 2024

Signed by order of the Church Board

4

TRUE JESUS CHURCH IN ELGIN YEAR ENDED 31 OCTOBER 2023

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF TRUE JESUS ELGIN

I report on the financial statements for the year ended 31 October 2023 set out on pages 6 to 15.

Respective responsibilities of the Trustees and the Independent 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 2006 (as amended). The charity’s Trustees consider that the audit requirement of Regulation 10(1) (a) to (c) of the Charities Accounts (Scotland) Regulations 2006 (as amended) 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 report

My examination is carried 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 includes consideration of any unusual items or disclosures in the accounts and seeking 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 accounts.

Independent examiner’s statement

In the course of my examination, no matter has come to my attention:

Chartered Accountant Whitelaw Wells Chartered Accountants 9 Ainslie Place Edinburgh EH3 6AT

Date: 5 December 2024

5

TRUE JESUS CHURCH IN ELGIN

STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 OCTOBER 2023

Unrestricted Restricted Endowment Total Total
Funds Funds Fund Funds Funds
2023 2022
Note £ £ £ £ £
INCOME AND ENDOWMENTS FROM: 2
Donations and legacies 106,282 53,899 - 160,181 145,702
Charitable activities 1,262 - - 1,262 2,064
Investments 5,496 - - 5,496 261
_ _ _ _ _____
TOTAL INCOME 113,040 53,899 - 166,939 148,027
_ _ _ _ _
EXPENDITURE ON:
Charitable activities 3, 4 78,828 4,400 - 83,228 89,167
_ _ _ _ _
TOTAL EXPENDITURE 78,828 4,400 - 83,228 89,167
_ _ _ _ _
NET INCOME AND 34,212 49,499 - 83,711 58,860
MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS
Balances brought forward at 1
November 2022 337,777 173,221 373,796 884,794 825,934
_ _ _ _ _
Balances carried forward at 31
October 2023 371,989 222,720 373,796 968,505 884,794

The charity has no recognised gains or losses other than the results for the year as set out above. All of the activities of the charity are classed as continuing.

The notes on pages 8 to 15 form part of these financial statements.

6

TRUE JESUS CHURCH IN ELGIN

BALANCE SHEET

YEAR ENDED 31 OCTOBER 2023

Note
FIXED ASSETS
Tangible assets
6
CURRENT ASSETS
Stock
Debtors:due in less than one year
7
due in greater than one year
8
Cash at bank and in hand
CREDITORS:Amounts falling due
within one year
9
NET CURRENT ASSETS
TOTAL ASSETS LESS
CURRENT LIABILITIES
FUNDS
Unrestricted – General
11
- Designated
11
Restricted funds
11
Permanent Endowment
11
£
2,000
6,116
30,000
228,532
266,648
(17,694)
26,234
345,755
2023
£
719,551
248,954
968,505
371,989
222,720
373,796
968,505
£
2,000
4,555
30,000
410,685
447,240
(10,200)
263,819
73,958
2022
£
447,754
437,040
884,794
337,777
173,221
373,796
884,794

These financial statements were approved by the members of the church board and are signed on their behalf by:

Date: 5 December 2024

notes on pages 8 to 15 form part of these financial statements.

7

TRUE JESUS CHURCH IN ELGIN

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 OCTOBER 2023

1. ACCOUNTING POLICIES

Basis of accounting

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The accounts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended).

The charity has taken advantage of the exemption from the requirement to prepare a Statement of Cash Flows as permitted under FRS 102 and the Charities FRS 102 SORP.

The charity constitutes a public benefit entity as defined by FRS 102.

The Members of the Board consider that there are no material uncertainties about the charity’s ability to continue as a going concern and have considered a period of at least 12 months from the date of signing of these financial statements.

Investment and other income

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.

Offerings are included in the year in which they are receivable.

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.

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

8

TRUE JESUS CHURCH IN ELGIN

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 OCTOBER 2023

1. ACCOUNTING POLICIES (continued)

Support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include governance costs which support the Trusts programmes and activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities.

Depreciation

Fixed assets are originally recorded at cost. Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Land and Buildings - nil
Furniture - 25% straight line
Equipment - 25% straight line
Motor Vehicles - 25% straight line

Items of expenditure are capitalised where the purchase price exceeds £250.

Freehold property has not been depreciated, which is not in line with Accounting and Reporting by Charities: Statement of Recommended Practice. The Church Board do not feel that the freehold property is reducing in value and therefore have not applied any depreciation.

The land and buildings are inalienable and form part of a permanent endowment which means that these cannot be sold but must be held in perpetuity.

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.

Unrestricted funds

Unrestricted funds are donations and other incoming resources receivable or generated for the objects of the charity without further specified purpose and are available as general funds.

Designated fund

Designated funds are unrestricted funds designated by the Board for a specific purpose.

Permanent Endowment fund

The Endowment fund is a capital fund which the Board are legally required to retain and use only for the purposes of the Church.

Restricted funds

Restricted funds are to be used for specific purposes as laid down by the donor.

9

TRUE JESUS CHURCH IN ELGIN

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 OCTOBER 2023

2.
INCOME
Unrestricted Restricted
Funds
Funds
£
£
Donations and Legacies
Offerings
106,282
53,899
Charitable activities
Special Meeting
1,205
-
Books and publications and other sundry income
57
-
Investments
Bank interest
5,496
-
113,040
53,899
2023
2022
Total
Total
£
£
160,181
145,702
1,205
1,926
57
138
5,496
261
166,939
148,027

Income was £166,939 (2022: £148,027) of which £113,040 (2022: £106,462) was unrestricted and £53,899 (2022: £41,565) was restricted.

3.
EXPENDITURE
Note
Unrestricted
Restricted
£
£
Donations to The General Assembly of the
True Jesus Church, United Kingdom
33,238
-
Other donations paid
4
-
4,400
Food
7,264
-
Rates and water
4,913
-
Light and heat
2,138
-
Transport
5,621
-
Cleaning
941
-
Insurance
5,273
-
Postage and stationery
389
-
Books and Publications
1,030
-
Telephone
453
-
Repairs and maintenance
6,832
-
Electrical review and repairs
-
-
Professional fees
990
-
Other direct charitable costs
4,808
-
Depreciation of fixed assets
2,838
-
Governance costs
Accountancy & examination fees
2,100
-
78,828
4,400
2023
Total
£
33,238
4,400
7,264
4,913
2,138
5,621
941
5,273
389
1,030
453
6,832
-
990
4,808
2,838
2,100
83,228
2022
Total
£
31,897
16,335
3,807
2,772
7,712
2,175
429
4,892
415
-
343
2,790
9,493
-
220
3,662
1,920
89,167

Expenditure was £83,228 (2022: £89,167) of which £78,828 (2022: £72,832) was unrestricted and £4,400 (2022: £16,335) was restricted. The trustees consider there to be only one charitable activity.

10

TRUE JESUS CHURCH IN ELGIN

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 OCTOBER 2023

4. OTHER DONATIONS PAID

OTHER DONATIONS PAID
IA World Evangelism Fund
UK General Assembly Building Fund
Africa Evangelism
IA IMP Fund
UKGA Evangelism
2023
£
1,450
2,500
350
-
100
4,400
2022
£
4,535
7,500
2,300
2,000
-
16,335

During the year the Church received donations from the members for The General Assembly of True Jesus Church, United Kingdom and other similar charities. The monies collected to be passed on to the various beneficiaries are held in restricted funds until payments have been made.

5. NET INCOME FOR THE YEAR

NET INCOME FOR THE YEAR
2023 2022
£ £
This is stated after charging:-
Depreciation 2,838 3,622
Accountancy fees 2,100 1,920

11

TRUE JESUS CHURCH IN ELGIN

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 OCTOBER 2023

6. TANGIBLE FIXED ASSETS

Heritable
Prop’ & Imp
£
COST
At 1 Nov 2022
442,241
Additions
263,969
Disposals
-
At 31 Oct 2023
706,210
DEPRECIATION
At 1 Nov 2022
-
Charge for year
-
Disposals
-
At 31 Oct 2023
-
Net Book Value
At 31 Oct 2023
706,210
At 31 Oct 2022
442,241
Land
£
5,000
-
-
5,000
-
-
-
-
5,000
5,000
Motor
Equip
Furniture
Vehicle
Total
£
£
£
£
60,488
53,471
8,600
569,800
10,666
-
-
274,635
-
-
-
-
71,154
53,471
8,600
844,435
59,975
53,471
8,600
122,046
2,838
-
-
2,838
-
-
-
-
62,813
53,471
8,600
124,884
8,341
-
-
719,551
513
-
-
447,754

Included within heritable property and improvements and land are the Church buildings, extension and land at a net book value of £373,796 (2022: £373,796) that are to be held for perpetuity. The Church also owns a flat with a net book value of £73,445 (2022: £73,445) and have purchased the Aberdeen Place of Worship with a net book value of £263,969 (2022: nil).

7. DEBTORS: Amounts due in less than one year

DEBTORS: Amounts due in less than one year
2023 2022
£ £
Prepayments 6,116 4,555

12

TRUE JESUS CHURCH IN ELGIN

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 OCTOBER 2023

8. DEBTORS: Amounts due in more than one year

DEBTORS: Amounts due in more than one year
2023 2022
£ £
Loans to affiliated churches 30,000 30,000

Loans to affiliated churches comprise two loans, £20,000 (2022: £20,000) to Cambridge Prayer House and £10,000 (2022: £10,000) to Dublin Prayer House.

The loans were made towards the purchase of new church buildings. The loans are interest free. By mutual agreement between the affiliated churches, repayment will become due at the earliest of sufficient funds becoming available to repay the loan or once the vacated premises of the respective churches have been sold. As there is no fixed repayment date these loans have not been discounted to their fair value as it is not know what term the loan will be repaid over however at least a year’s notice will be required before a repayment is made.

9. CREDITORS
2023 2022
£ £
Accrued charges 17,694 10,200

10. TRUSTEE EXPENSES

No fees or expenses have been paid to the Trustees (2022: £Nil). All Trustees act gratuitously. The church has no employees. The preacher’s salary costs are met centrally by The General Assembly of the True Jesus Church, United Kingdom.

13

TRUE JESUS CHURCH IN ELGIN

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 OCTOBER 2023

11. MOVEMENT IN FUNDS

At
1 November
2022
£
Restricted Funds
Aberdeen Building Funds
169,458
Other Restricted Funds
3,763
173,221
Permanent endowment
373,796
Total restricted Funds
547,017
Unrestricted Funds
General funds
263,819
Designated funds
73,958
337,777
TOTAL FUNDS
884,794
Income
Expenditure
Transfers

£
£
£
50,994
-
-
2,905
(4,400)
-
53,899
(4,400)
-
-
-
-
53,899
(4,400)
-
113,040
(75,990)
(274,635)
-
(2,838)
274,635
113,040
(78,828)
-
166,939
(83,228)
-
At 31
October
2023
£
220,452
2,268
222,720
373,796
596,516
26,234
345,755
371,989
968,505

Purpose of Aberdeen Building funds

The restricted funds represent monies received from donors specified for the purchase of a Church building in Aberdeen.

Purpose of other restricted funds

The restricted funds represent monies received from donors specified for particular purposes. These funds are passed on to the bodies listed in Note 4.

Purpose of permanent endowment funds

The permanent endowment fund represents the net book value of the Church building, land and Church extension to be held for perpetuity.

Purpose of designated funds

The designated fund represents the reducing net book value of the remaining fixed assets not held in the endowment fund.

14

TRUE JESUS CHURCH IN ELGIN

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 OCTOBER 2023

11. MOVEMENT IN FUNDS

MOVEMENT IN FUNDS
At
1 November
2021
£
Restricted Funds
Aberdeen Building Funds
146,542
Other Restricted Funds
1,449
147,991
Permanent endowment
373,796
Total restricted Funds
521,787
Unrestricted Funds
General funds
227,215
Designated funds
76,932
304,147
TOTAL FUNDS
825,934
Income
Expenditure
Transfers

£
£
£
22,916
-
-
18,649
(16,335)
-
41,565
(16,335)
-
-
-
-
41,565
(16,335)
-
106,462
(69,170)
(688)
-
(3,662)
688
106,462
(72,832)
-
148,027
(89,167)
-
At 31
October
2022
£
169,458
3,763
173,221
373,796
547,017
263,819
73,958
337,777
884,794

12. NET ASSET RECONCILIATION

ET ASSET RECONCILIATION
Unrestricted
£
Tangible fixed assets
345,755

Net current assets
26,234


As at 31 October 2023
371,989


Unrestricted
£
Tangible fixed assets
73,958

Net current assets
263,819


As at 31 October 2022
337,777

Restricted
£
373,796
222,720

596,516

Restricted
£
373,796
173,221

547,017
Total
£
719,551
248,954
968,505
Total
£
447,754
437,040
884,794

15