2024-12-31-accounts

Orkney Islands Church of Scotland Congregational accounts for the year ended 31 December 2024 Congregation No: 311925 Scottish Charity No: SCIH)3099

Orkney Islands Church of Scotland Trustees, Report Year ended 31 December 2024 The trustees presenl their annual report and financial stalements of the charity for ihe year ended 31 Deeember 2024. The financial staleinents have been prepared under the hislori¢al cost Convention in accordance with the accounting policies set out in the accounts and comply with the General Assembly Regulations for Congregational Finance, the Charities and Trustee Investment (Scotland) Ael 2005, the Charities Aecounts {Scoiland) Regulations 2006 {as amended) and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing iheir accounts in accordance with ihe Financial Reporting Standard applicable in the UK and Republic of Ireland effective froml January 2019. The financial statements for tlie year ended 31 December 2023 were prepared oil a receipis and payment5 basis. These financial statements have been prepared under an accruals basis. This has rcsulted in the rcvised financial statements for the year ended 31 December 2023 included herein reporting net income of £4,234 rather than an excess of receipts over payinents of £1,184 and Det assets at 31 December 2023 being reported as £39,908. having previously been reported as £40,219. Objectives and Activities The Church of Scotland is Trinitarian in doctrine, Refom]cd in tradition and Presbyterian in polity- It exists to glorify God and lo work for the advancement of Christ's Kingdom throughout the world. As a national Church, it acknowledges a disiinctive call and duty to bring the ordinances of religion to the people in every parish of Scotland through a territorial ministry. li co-operat¢5 Wlth other Churches in various ecumenical bodies in Scotland and beyond. On l O¢tober 2024, Stromness Church of Scotland entered into a union with 16 other Church of Scotland congregations in Orkney, being Kirkwall East Church of Scotland. Shapinsay Church of Scotland. Kirkwall St Magnus Cathedral {Chur¢h of Scotland), Flotta Church of Scotland, Rousay Church of Scotland, Birsay, Harray and Sandwick Parish Church of Scotland, Orphir and Sienness Church of Seotland, East Mainland Church of Scotland, South Ronaldsay and Burray Church of Scotland. Nforth Ronaldsay Parish Church. Sanday Church of Scotland. Hoy and Walls Parish Church of Scotland, Eday Chiir¢h of Scotland. Moncur Memorial Church of Scoiland Stronsay, Westray Parish Church and Papa Wesiray Parish Church. Tlie parish. whicl) came into being on l October 2024, comprises 17 congregations serving almost the whole geographical extent of the historic county of Orkney. li is served by a ieam of 5 ministcrs supplemented by an OLM (non-stipendiary minister) who have been learning to work iogether as a team Ihroughout the parish, is in the process of recruiting a minister to serve primarily in St Magnus Catliedral (with Flotla and Rousay) and in due course another (0.5 FTE) to serve PTimarily in Stronsay and Eday, and at 31 December 2024 was anticipating a further vacancy in East Mainland (with North Ronaldsay, Sanday and Eday)- A new Kirk Session was formed al tlie union, with representatives from each of the local congregation5, and has begun to learn how lo operate effectively together. The parish conducts worship for most of its eongregations every Sunday, with those in the Outer Isles meeting less frequ¢ntly and sometimes mid week as suits local requirements, and from tinie lo lime local congregations hold services jointly with neighbouring congregations ID the parish and with other denornin&tions. Local congregalions host a variety of youth activities, fellowship meetings and social events a5 relevant to each locality. Achievements and Performance The union on l October 2024 was created in order to provide support to smaller congregations, in particular to share administrative burdens, and also lo facilitate resource-sharing across Ihe parish. This is designed to flee up time for local congregations io concentrate on mission and outreach and serving their local community.

As Ihese accounts describe a three month period post-union, which included Advent and Chrislrnas, the achievements and performance of the union was largely to be found in the individual Local Worshipping Comrnunities (whai had been ihe previous parish communities), undertaking their usual range of activities. In tenns of administration and governance, tlie uniled parish has made a good start on consolidating and streamlining the management of buildings. the rccord-kceping and charity governance tasks of the consliluent areas, and the fulfilment of Church and civil law safeguarding requirements. This work has continued throughout 2025. Financial Revieiv The results for the year reflect 12 months. activities for Strornness Church and 3 months, activities for the 16 churches which joined on union. Assets acquired from the 16 incoming churelies are disclosed as Transfer of Union balances and totalled £3.135k. Gift aid receivable for pre-union periods tolalled £23k. Excluding these amounts, underlying income totalled £224k, including £22k specifically donated for the Malawi Partnership. Expei)diture over the period totalled £213k including £17k rernilted to the Mal<iWi Partnersliip, indicating a net underlying sutylus of income over cxpenditurc. For Stromness churcb, whilst incornc rose by over 8 /0, Costs increased substantially due to a £ l Ok increase in Giving to Grow, slightly oftset by savings in locum and pulpit supply costs, following the appoinlnienl of a ininisler tn February 2024. Overall, the Stromness congregation generated a small Surplus of £lk, down from £4k in the previous year. The kirk session is planning a stewardship programme for Spring 2026, when a clearer position of the united parish's financial sitU3tion should be available. Investment Policy and Performance The investmenls held al 31 Deceinber 2024 represent those transferred in at union from the merging congregations. Since then, the kirk session has approved an investment policy to achieve growth and income, ainiing to generatc sustainable returns whilst protecting ihe Capital value of our invcstments and mitigating the effects of inflation. li has agreed to follow the risk appetile of the wider Church of Scotland by placing surplus funds into one or more of the following fuiids nianaged and administered by the Church of Scotland ini'estors Investors T￿$t Growth fund - equity based and intended for long terni investment, aiming to provide capital growth and managed by Newton Investnient Management Limited Investors Trust Income fund - intended for m¢dium-tem] investinent, aiming lo provide immediate high income with ￿ndS invesled predominantly in fixed-interesl securities and managed by Royal London Asset Management Investors Trust Deposit fijnd - intended for short-tern) investment and aiming Io PTovide a high rale of interest and managed by Thomas Miller Investment Limit¢d. We have detined our liquidity needs as 6 months working capital which will be held in current bank accounts and the liivestors Trust Deposit fund. Tlie reniaiiider will be split between Growth and Income investments iii proportions detennined by thc Finance Committee based on a rcview of markei expectations. Risk Management The charity trustees consider the principal risks facing the Charity lo be an agein8 and declining membership. with community perceptions that the church at large is of limited relevance in a secular world. This is expccted to lead lo increasing pressure on finances and on ability to adniinisler lh¢ work of the charity through increasing burdeL] on lewcr volunteers.

The union creating Orkney Islands Church of Scotland on l October 2024 (with Firth Church joining on I September 2025) is an allempt to address tliese risks, with the Church of Scotland congregations across Orkney now sharing resources and one kirk session replacing 18 separate ones. Reserves Policy The charity trustees have considered the reserves required aT)d have laken into account their current and future liabilities. It is the Trustees. policy to hold reserves of approximately 6 months expenditure excluding designated funds. At the year end the Church held unrestricted funds of £2.8 million of which £753k w&s designated for the St Magnus Centre, £567k for King Street Halls, £123k for fabric purposes, £37k for the Cathcdral choir and £45k for a variety of other pU￿0$eS. The remaining balance of £1.2 million reprcsents some 2 years of expenditure and while this is higher than would nonnally be expecled, the Trustees are aware that this is likely to erode over lime. The church also held £358k of restricted funds which have been provided for the purposes specified in Note 16. Plans for future periods Since 31 December 2024, the united parish has.. hosted a visit from ihe Moderator of the General Asscmbly in April 2025, culminating in a joint service in St Magnus Cathedral held a mission inilialive during ihe 20, Intemational Island Games, led by the Kirkwall Council of Churches and supported by mtnisters and mernbcrs of the Church of Scotland in Orkney held an Orkney-wide launch ofthe God WelcoN7es All hymn-book supplement continued recruitment of iiidividuals to train as rniiiisters, Readers and local preachers. 'elcomed Firth Church of Scotland into union with effect from I September 2025 welcomed Rev Alison Dickie as minister for East Mainland church continued its work on consolidating and streamlining maiiagemenl and adniinislration liaised with the General Tiustees of the Church of Scotland in the acquisition by them of a new manse in BU￿aY lo replace the one in St Margaret's Hope, which will provide better accommodalion for a niinister and nieet the Church of Scotland's minimum standards It continues lo meel with thc Evie and Rcndall Church of Scotland in the hope that agreement can be reached so that they too join the union. It is attemp(ing to recruit a new minister for St Magnus Cathedral and is hoping to obtain pemiission from the presbytery of the North East and Northern Isles to call a new minister for the Stronsay church, and continuing refurbishment of the Cathedral and Stronsay manses in prcparation for this. In addition, it is planning to refurbish the flat wiihin thc Kirkwall East church, which will allow it to recruit a replacement caretaker following the resignation of the fornier caretaker in early 2025. It is planning a stewardship C￿npaign for Spring 2026. Structure, Governance and Management The congregation is a registered eharity, number SC003099 and is administered in accordance with the terms of the Deed of Constitution (Uiiitary Forni) aiid is subject to the Acts and Reguldtioiis of the General Assembly of Ihe Church of Scotland. Meinbers of the Kirk Session are the charily trustees. The Kirk Session members comprise the Church of Scotland rninisters in the parish of Orkney together wilh up lo two representalive elders from each of the local worshipping congregations within the parish which tonn part of the union. The Kirk Session is chaired by onc of the ministers and meets ai least once every two months as appropriate. Certain responsibilities are delegated lo the Finance Committee, the Property Committee aiid the Safegudrding Con)mittee as appropriate. The Kirk Session is responsible for spiritual affairs within the parish. It plans to introduce a forn]al induclion process for trustees in 2026.

Reference and Administrative InformatlOD Trustees Tni%tccw who sen'ed at any lime during the year aiid up to thc dalc of signing thc accounis are as folluws

Audltor A9 Accountancy Elm House Cradlehall Business Park Inverness IV2 5GH Principal Bankers Bank of Scotland Royal Bank of Scotland Virgin Moncy Parent charity The Charity's parenl charity is Church of Scotland SCOI1353 Trustees, Responsibilities in Relation to the Financial Statements The charity trnstees are responsible for preparing a t￿Slee5. annual report and fin￿claI statement5 in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom G¢nerally Accepted Accounting Pracliee). The law applicable to ch2ri1ies in Scotland requires thc charity trustees to preparc financiiil stalcments for cach year which show a true and fair view of the stale of affairs of ihe charity and of the income and expenditure of the charity for that period. In prepaiing the financial $t￿ernents. Ihe trustees are required 10.. select suitable accounting policies and thcn apply thcm consistcntly. observe the rnethod and principles in the applicable Charities SORP; make Judgements and estimatcs that are reasonable and prudenl. slate whcther applicable accounting standards and statemcnts of recommended practice havc bccn followed. subject lo any departures disclosed and explained in the financi81 stat¢ments' prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will ¢onlAnue in operation&1 existence. The trustees are ￿SponsIble for keeping adequate accounting records that are sufficient to show and explain the ¢barity's transactions and disclose with reasonable accuracy at any time the financi81 posiliuii ofthe charity and to enable them to ensurc thal the financial statements comply with the Charities and Trustec tnvestment (Scotland) Act 2005 and Ihe Charities Accounts {Scotland) Eiegulations 2006 {as amended). They are also responsible for safeguarding the assets of the ch4wity and hence foT taking reasonable steps for the prevention and dcteclion of fraud and other irregularitics. The In￿1¢¢5 are responsibl¢ for the maintenancc and integrity of the Charity and fiiiwicial infnrn]ation on the congregation'% wcbsitc. Legislalion in the Uniled Kingdoni governing thc preparation and disseminalion of financi31 statements may differ trom leoislation in other jurisdictions. Appro￿.L.d b), Ilie Tru%tees aiid signed on thLir behalf

Orkney Islands Church of Scotland Independent Auditor's Report to the Trustees of Orkney Islands Church of Scotland Year ended 31 December 2024 Opinion We have audited the financial slatemenls of Orkney islands Church of Scotland for the year ended 31 December 2024 which comprise the statement of financial activities, the balance sheel. the statement of cash tlows and notes to the financial stateinents, including significant accounting policies. The financial reporting framework that has been applied in their presentation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 Tlie Financial Rep()rling Standard applicable iii ihe UK and Republic o]'Ii'eland (United Kingdom Gcnerally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the slate of the charity's affairs as at 31 December 2024 and of ils incoming resources and application of r¢sources, including its income and expenditure for the year ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice. and have been PTepared in accordance with the requirements of the Chariiies and Trustee Investmenl (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scoiland) Regulations 2006. Basis for opinion We conducted our audit ID accordance with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our re8ponsibilitic% und¢r those standards are further described in the auditor responsibilities for the audit of th¢ financial statements section of our report. We are independent of ihe charity in accordance with the ethical requirernenls that are relevant to our audit of Ihe financial statements in ihe UK, includiiig the FRC'S Etliical Standard. and wc have fulfilled our other ethical responsibilities in ac¢ordance with those requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the tNstees' use of the going concern basis of accounting in the preparation of the financial statements is appropriale. Bascd on the work ive have perfornicd, we have not identificd any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to Continue as a going concem for a period of at leasl twelve months from when the financial slatements are authorised for issue. Our responsibililies and the responsibililies of ihe tNstees with respect lo going concern are described in the relevani sections of Ihis report. Other informatioD The other infoniialion comprises the infonnation included in the annual report other than ihe financial statements and our auditor's report thereon. The trustees are responsible for the other inforn]ation conlained within the annual rcport. Our opinion on the financial statements does not cover thc other infonnation and we do not express any fonn of assurance Conclusion Ihereon. Our responsibility is to read the oiher inforniation and, in doing so, consider whether the other infom]alion is materially incoiisistent wilh the financial stxteiiients or our knowledgc obtained in the coursc of the audit, or otherwise appears to bc materially missiated. If we idenlify such material inconsisiencies or apparent material misslatemenis, we are required to delerniine whether this gives rise to a material misstatenieni in the fiiiancial statements theniselves. If, based on the work we have perfomied, we conclude that there is a material misstatemcnt of this other infomiation, we are required to rcport that fact. We have nothing to report in this regard. Matters on which we are required to report by exception We have nothing to report in respect of the following malters in relation lo which ihe Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, tn our opinion:

the infomialion given in the financial statemcnts is inconsistenl in any material respect with the trnstees, report.. or sufficienl accounting records have not been kept. or the financial statements are not in agreement wilh the accounting records. or we have noi receiv¢d all the infom]alion and explanations we require for our audit. Responsibilities of trust¢es As explained more fully in the statement of trnstee. responsibilities, the trustees are responsible for the preparation of the financial sthtements aiid for being satisfied that they give a trne and fair view, xnd for such iniernal control as the Irustecs detem]ine is necessary lo enable the preparation of financial slatements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, Ihe tNstees are responsible for assessiiig the charity's ability to continue as a going concern, disclosing, as applicable, niatler8 related to going concern and using the going concern basis of accounting unless th¢ tNstees either intend io cease operations, or have no realistic alternalive but lo do so. Auditor'5 responsibilities for the audit of the financial statements We have been appointed as auditor under section 44(1)(c} of the Charities and Trustee Investrnenl {Scotland) Act 2005 and report in accordance wilh the Aci and relevant regulalions made or having effect thereunder. Our objectiiwes are to obtain reasonable assurance aboul whether the financial statements as a whole arc free from material misstalemenl, whether due to fraud or error, and to issue an auditor's report thal includes our opinion. Reasonable assUr￿ce is a high level of assurance but id not a guarantee thal an audit conducted in accordance with ISAS (UK) will always delecl a material misstatement when it exists. Misstatements can aTise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence ihe economic decision of users taken on the basis of these financial- statements. I￿egUlaritIes, including fraud, are instances of non-compliance with laws and regulations. Wc design procedures in linc with our responsibililies, outlined above, lo detect malcrial misslatcmenls in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are apable of detecting irregularities, including fraud is detailed below. We obtained an understanding of the legal and regulatory framcworks that are applicable to the charity. focusing on provisions ol'those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include: United Kingdoin Generally Accepted A¢counting Pra¢tiee Charities and Trustee Investment (Scotland) Act 2005 Charities Accounts (Scotland) Regulations 2006 We gained an understanding of how ihe charity is complying with these laws and regulations by making enquiries of management and those charged with governance. We corroborated these enquiries through our review of relevant correspondence and board meeting minutes. We assessed the susceplibility of thc charity's financial staiemenls to inaterial misstatement. including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management were remunerated and whether this provided an inceiitive for fraudulent activity. We considered the overall control environmcnl and how management oversee the implcmentation and operation of controls. In areas of the tinancial statements where the risks were considered to be higher, we perfonned procedures to address each identified risk. The following procedures wcre perfonned lo provide reasonable assurance that the f1nancial statement5 were free of material fraud or error. Reviewing minutes of meetings of those charged with governance Performing audit work procedures over the risk of management override of conlrols including testing of journal entries and other adjustments for appropriateness, evaluating the business ralionale of significant transactions outside the nonnal ¢ourse of business Procedures to confirni the existence and completeness of income ensuring it wa5 recognised in line with the charity's accounting policies. Enquiries with managenient regarding the compliance with laws and regulations.

Our audit proceduTes were designed to respond lo the risk of mat¢rial niisslatemenls in the financial slatemenls. Tccognising that the risk of not delecting a maleri31 misstatement duc to fraud is higher than the risk of not detecting one resulting from crror, as fraud may involve iDt¢nlional concealmcnt, forgery, collusion, omission QT mi5representalion. There are inheient limilalions in the audit procedures perfornied and ihe further removed noncompliance with laws and regulations is from th¢ events and transactions reflected in the financial statements, the less likely we are to becomc aware of il. A ￿rther descriptson of our responsibilitics is availablc on the Financial iieporting Council's websilc at: .'Illm' trc.or -uklaudilorgres onsibililies. This description foms part of our auditor's Teport. Use of our report This report is made solely lo the charity's trnstees, as a body, in accoTdancc with Part 4 ot thc Charities (Accounts and Reports) Regulations 2008. Our audit work has becn undertaken so that we might state io ihc harity's trus*¢S those matters wc arc wquired 10 state to them in an auditor's report and for no other pury)ose. To thc fullest exienl pcrmitted by law, we do not accept or a58ume r¢sponsibiliry to anyone other ihan Ihc charity and the charity's Iruslecs as a body for our audit work, for this report. or the opinions we hav¢ fornied. 'or and b¢halt ul Ag A¢LuuHtaiic}' Lu3iitL ta or). vr Elm House Cradlch811 Business Park Inverness tv2 5GH Uniled Kingdom Date...

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Orkney Islands Church of Scotland Balance Sheet At 31 December 2024 Tot￿ Funds 2024 2023 Note Flx¢d Assets: Tangible ass¢ts Investments 1.327,884 595.097 Total Flxed Assets 1.922,981 22.480 Current Assets Sto¢k lall gi)od5 for resa]el Debtors 7.818 45.511 4.614 15,239 19.853 Cash at bank and in hand 12 Total Current Ayets 1.351.183 Liabilities CTtditors fallill8 due within one J'ear Net Current Assets Creditors falling due after rnore than one ytrar 13 53.186 1.297.997 17,428 Net A55ets 3,220,978 39.908 The fund5 of the thArlty: Endowrnent funds 16 95.238 358,528 2.767.212 3.22ll,978 Restricted incoinc funds 280 Unrestricted income funds 39.628 39.908 Totgl ch&rit%' funds 16 Thc fin.Inciil %latcmcntg iN'erc ?pproi'ed bli the twgte=s on 17 February 2026:

Orkney Islands Church of Scotland Statement of cash flows For the year ended 31 December 2024 21b24 2D23 Cash flows from operating activities Cash g¢neraied from op¢ralions Investlng gttlvltles Purchase of iangible fJx¢d assct5 Investment income received Net eash (used inllgenerated from Inv¢$tlng acti￿lieS 18 1,323,975 12641 {57.503} 16,143 463 141.3601 463 Iytt eash generated from fin4ncing aetivities Net in¢r¢ase in ca$h and cgsh equivalent5 Cash and Lash equivalents at beginning of ycar Cash ea$b equlvalents At end of year 1.282.615 15.239 199 15.040 1,297,854 15,239 12

Orkney Islands Church of Scotland Year ended 31 December 2024 Accounting Policies The principal accounting policies, which have been applied consistently in the currenl and preceding year in dealing with items which are considered material lo the accounts, are sel out below. The charity is a public benefit entity as defined by FRS102. In the application of the charity's accounting policies, Ihe Irustees are required to make judgements, esÉinules and assumptions over the carrying amounts of assets and liabilities that are not readily apparent from other Sources. The estimates and associated assumptions are based on histOTical experience and other factors that are considered lo be relevant. Actual results may difter trom these estimates. The estimates and underlying assuniptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the esiimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both Current and future periods. Basis of preparation The financial statements have been prepared under the hislorical cost convenlion and in ac¢ordance with Accounting and Reporting by Charities- Statement of Recominended Practice applicable to charilies prcparing their accounts in accordance with the Financial Rcporting Standards applicable in ihe UK and Republic of Ireland (FRS102) eftective from l January 2019 and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the Charities and Trustee Investmenl (Scotland) Aci 2005 and the Charities accounts (Scotland) Regulations 2006 (as amended). The financial accounis are prepared in sterling. which is the functional cU￿enCY of the charity and monetary amounts in the financial statements are rounded lo the nearest £. Fund accounting Funds arc classificd as either restricted funds or unrestricted funds, dcfined 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 ihrough legal processes, bul still within the wider objects of the charity. Endowment funds are funds which have been given on the condition that the original capital sum is not ieduced, but the income ihere from is used for the purpose defined in accordance with the objects of the charity. Unreslricted funds are expendable at the discretion of the tThstees in furtherance of ihe objecls of the charity. If parts of the unrestricted funds are earn]arked al the discretion of the trustees for a parti¢ular purpose. they are designated as a separate fund. This designation has an administrative pu￿ose only and does not legally restrict the trustees, discretion lo apply the fund. Going Concern The Trustees consider that there are no material uncertainties about Ihe ability of the charity to continue for the foreseeable tuture, and therefore have adopted the going concern basis in preparing these financial statements. Recognition of income Income is recognised when the charity has entitlement lo the fvnds, any perfom]aiice coiidilions attached lo the item(s) of income have been mct, it is probable that the income will be received and ihe amount can be measured reliably. Donated serviees and facilities Donated professional services and donated facilities are recognised as income when the charity has control ovcr the item, any conditions associated with the donated ilern have been mel, the receipt of ecoiiomic beiiefit from the use by the charity of the itcm is probable and that economic benefit can be measured reliably. In 13

accordance with the Charities SORP (FRS102) Ihe general volunteer time of congregation members is not recognised. On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the aniounl the charity would have been willing lo pay to obtain services or facilities of equivalent economic benefit on the open market,. a corresponding amounl is then recognised as expendilure in Ihe period of receipt. Interest receivable Interest on funds held on deposil is includcd when receivable and the amount can be measured reliably by the charity,. this is nonnally upon notification of the interest paid or payable by the Bank. Recognition and allocation of expenditure Expenditure is included in Ihe Statement of Financial Activities on an accruals basis and is recognised when there is a legal or construclive obligation to pay for expenditure. Fixed Assets The charity has the right to occupy and use for its charitable objects certain tangible fixed assets, including the Church, halls and manse, vested in the Church of Scoiland General Trustees. No consideration is payable for the use of these assets. Expenditure incurred on the repair and maintenance of these assets is charged as resources expended in the Statenient of Financial Activities in the period in which the liability arises. All tangible fixed assets costing in excess of £l.000 having a value to the charity greater than one year, other than those acquired for specific purposes, are capitalised. Depreciation is provided on a straighi-line basis lo write off ihe cost or initial value, less residual value, of iaiigible fixed assets over tlieir estimated useful lives= Buildings 50 years Plaiit and machinery 4 to 10 years Computer cquipment 2 10 4 years Fixtures and Fiitings 2 10 5 years Church and olTice equipment 2 to l O years Investments Fixed asset investments are stated al market value at th¢ balance sheet dale. Unrealised gains and losses represent the difference between the markel value at the bcginning and end of the finaiicial year or, if purchased in thc year, the difference between cost and market value at the end of the year. Realised gains and losses represent the difference between the proceeds on disposal and the market value at the start of the year or cost if purchased in the year. Taxation Orkney Islands Church of Scotland is recognised as a charity for the purposes of applicable laxalion legislation and is therefor¢ not subject to taxation on its charitablc activities. The charity is not registered for VAT and resources expended therefore include irrecoverable input VAT. Cash and cash equivalents Cash and cash equi￿.a1entS include cash in hand and deposits held at various High Street banks and with the Church of Scotlai)d Inveslors Trust. Debtor5 Trade and other debtors are recognised at the settlem¢nt amount due after any discount offered. Prepayments are valued at the amount prepaid net of any discounts due. Stoek Stock is measured at the lower of cost and nel realisable value. Creditors Creditors are nornially recognised at their settlement amount after allowing for any trade discounts due. 14

Employee benefits and retirement benefits Unused holiday enliilemenls are recognised in the period the employee services are received. Tern)inalion benefits are recognised immediately as an expense when the eharity is demonstrably committed lo tenninate the employment of an employee or lo provide terminatlOD benefits. Payments to deffned contribution retirement benefit schemes are charged as an expcns¢ as ih¢y fall due. Financial instruments The charity has elected to apply ihe provi.sions of Section I I 'Basic Financial Instruments, and Section 12 'Other Financial Instruments Issues, of FRS 102 to all ot its financial instmments. Financial iF)Struments are recognised in the charity's balance shecl when thc charity becomcs party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right lo set off the recognised amounts and there is an intention lo setile on a net basis or to realise the asset and settle the liability simultaneously. Basi¢ financial assets Basic financial assets, which include debtors and cash and bank balances. are initially measured al transaction price including transaction costs and are subsequently carried al amortised cost using the effeclive interest method unless the arrangement constitutes a financing transaction, where the Iransaclion is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are nol amortised. Basic financial liabilities Basic financial liabilities, including creditors and bank loans, are initially recognised at transa¢tion price unless the arrangement conslitutes a financing Iransaclion. where the debt instrument is measured at the present value of the future payments discounted al a market rale of interest. Financial liabilities classified as payable within one year are not amortised. Debt inslruments arc subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay lor goods or services that have been acquired in the ordinary ¢ourse of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are prescntcd as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using Ihe effective interest method. Derecognilion of financial liabilities Financial liabilities are derecognised when the charity's contractual obligaiions expire or are discharged or cancelled. 15

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Notes forming part of the financial statements for the year ended 31 December 2024 2024 2023 7. Staff cost$ and numbers Salarics and wage5 Social security costs Pensions Tolal 26,059 4,350 331 26.390 The av¢rage number of employces during the year wa5 a5 follows-. 2024 2023 Number Number Ministerial sllpport Si Magnus Cenire Music staff Premises maint¢nan¢e No employee had employee benefiis in exccss of £()0,00012023 nill. The ¢hariry operaies a defined contTibulion4 pension schemc for all qualifying employees. Th¢ assets of the scheme are held separaiely from th05¢ of the Lharity in an ind¢pendenily adminisiered fund. All Church of Scotland Congregations contribute lo the Naiional Stipend Fund which bears the costs of all mini5teis' stipends and eniployer's contributions for national insurance, pension and housing and loan fund. Ministers, siipends are paid in accordance with the national slipend scale, whicli is relaied to years of serN'ice. For the year under review the minimum stipend was £31,642 and the maximum stipend lin the tenth and subsequent ytaT51 £38,884. 8. Trustee Remuneration atsd Related Party TrADsactions Durirtg the ycaT one trustee was paid QTganist fees of £560 and onc was paid £1 18 for pulpit supply. I I trnsices received rcimbursemeni of expcnses incU￿cd Iniileage, manse expenses, guiter cleartittg, worship maierial5, po&ia¥e and sundry expenses) toialling £1.263. No trusiee or a person related ro a trustee had ony personal intere$1 in any eontra¢t or transaction entered into by thc charity during the yeaT. During the year a total of £10.919 was donated to ihe congregation by trUSI¢¢S. 19

Notes forrning part of the financial statements for the year ended 31 December 2024 Tangible Fixed Assets Church and Offi¢¢ equipment fittinEs Fixtures Assets ndtr ¢onstruetion Plant and Computer Buildithgs mathinery Equipment Total Cost At I january 2024 Addition5 Disposals At 3 1 Dccember 2024 1,211,700 69,169 5,795 44.696 4.579 4,415 1,340.354 1.211.71K) 69.169 5,795 44.696 4,579 4.415 1,340,354 Ar¢umulgted Dtpre¢kation Ai l January 2024 Charge for }'ear Eliminated oil Disposals Al 31 December 2024 8,208 2.147 449 255 12.470 8.208 2,147 449 255 12,470 Net Book Value At 31 December 2023 At 31 Dec¢mber 2024 1.203,492 5,346 43.285 4.324 4,415 1,327,884 Kirknvall Ea51 Manse ha5 noi been re¢ognized in the finan¢ial stsletnents as il$ original cost cannot be ieliably measured. 111. Dtbtors 2024 2023 Gift Aid Tax Refund Due 24,884 3,197 17.430 4.614 InN'oiced lelting Income Prepaymen15 & accrued income 45.511 4,614 Investments 2024 2023 Market valuc ai 31 December 202312022 Investments transferred itt on union Unr¢31ised gain I11oss1 on investnienl Market value al 31 D¢c¢mber 202412023 22.480 560.325 12.292 595.097 20,822 1,658 22.450 Investment5 at Cosi 402,744 7,405 20

Notes forming part of the financial st4tements for the year ended 31 Deeember 2024 J I Cont'd The following investm¢t)is are held.. 64,931 units in Church of Sco¢land Investors Trusi GrowEh Fund 16,199 units ID Church of Scotland Investors T￿$1 Income Fund £1,676 National Savings and Investments 12. Cash *t in hand 2024 2023 Bank balances Short lemi deposits with Church of Scotland Invesiors TNst Cash in hand 826,885 469.053 1,916 1.297,854 5,239 i 0.000 15.239 13. Creditors 2024 2023 Trade creditVT$ 24.003 Accrua15 17,031 9,090 3,062 53.186 2.425 D¢ferred income Other 2,425 Deferred income all arosc during the year and comprises wedding deposits received and prepaid rent for the St Magn￿S Ccntre. 14. An#lysls of Net Assets Among Funds General D¢5igDated Restricted EDdowment Total Fixed As5e15 647.489 641,001 46.984 1,188.731 343,177 6,202 23,841 334,687 62,920 32.318 1,922.981 1,351.183 53,186 Current A55elS Cutrenl Liabilili¢5 Net assets at 31 Dee 2024 1,241.506 1,525.706 358.528 95,238 3,220.978 Gener41 Designaied Restricted Endowment TotY41 Fixed Assets Current Asse15 42.053 280 42.333 Currcnt Liabiliiies 2.425 39,628 2,425 Net assets at 31 Def 2023 280 39,908 21

Noles forming part of the financial st4tements for the year ended 31 December 2024 IS. Volunteers In ¢ommon with all coDgT¢gaiions of the Church ofscotland the congr¢g21ion benefits froni the contribution rt)ade by volunie¢rs who give their time and talents willingly for the benefit of the Church. The #reas of congregational life which rely tsn Ihc contribiition of volunl¢¢rs are many and varicd and much of the activity would bc unable to ¢oniinue were it Thot for Ihe commitment shown. 16. Movement$ In Fund5 AtlJ*n At 31 Dee 2024 Income ExpeDditure Trgnsfer$ 2024 Endowment funds Easi Mainland Brcchin 5,500 22,240 4,279 300 5,500 22,240 4,279 300 East Mainland Gorn Cathcdral Mcil bLquest Eday Cpt J Swan memorial Stronsay- Cooper,Chalmers Stron5ay-Moneur. Spence, Shearer 23.234 40,080 95.633 1145} 250 23,089 39,830 95,238 395 Restricted fund$ CailiedTal Guild Easi Mainland CaTpeting fund East M&isJland disabled acccss East Mainland fabric fund East Mainland Giiild East Mainland Iirgan fijnd East Mainland Parishioner5 Fund Eday Siewart b¢quesi Kirkwall East Jnaintenan¢e Malawi Panncrship Mil¢ston¢ Guild Mileslnne messy kirk Milestone Scarth memorial Nonh islcs NiJrth Ronald5ay Stewart bequest Papa Westray Stewart bequest Rousay Stewart bequest Sanday Guild Sanday music Sanday Stewart bequest Shapinsay Flc)wer Sh2pinsay Reflective Routes Shapinsay refl¢ctiv¢ Space irtlenance Shapin%ay Siewart beque$i Souih Ronaldsay & Burray guild Souili R()naldsay & BU￿aY bible South Ronaldsay & BurTay youth Stromntsb gllild Sirollsay music Sironsay PToperty maintenance Stronsay Stewatt bequest W¢5tray guild Westray Stewart bequest 1,444 17 (360} 1.084 (57) 30,226 1,804 2.024 1.236 28,362 84,430 21.853 2.290 406 68 (500) 30.294 1,092 2.024 1,236 28,362 81.300 5,213 2,184 406 (2121 {3,1301 50 116.6901 {106} 313 28,462 28.461 28,461 397 ,542 23,462 61 1,315 (313) (454} 28.008 28,461 28,461 387 1,542 21,862 61 (10) 11,6001 11661 (1.1491 2,000 23.076 405 109 679 1,301 2,293 5,600 28,462 3.536 1,149 3,149 23.076 363 109 679 322 2,293 5,850 28,462 3,506 28,572 358,528 142) 280 (7101 {5501 250 1301 280 382,821 18.780 (5.793 22

Notes forming part of the financi21 statements for the year ended 31 December 2024 16. CoDt'd Unrestricted funds Cathedral candle C&thedral Choir 996 996 37,484 2,280 779,570 14,538 139 11771 {4421 (26,653) 37,307 1,838 752,917 14,538 C.ath¢dral Toddl¢rs Si Magnus Celltre Eday desigttated fabric Hoy & Walls designated fabric King Street Halls Kirkwall Easi designated fabric Kirkw211 E2si d¢signal¢d ouireach Kirkwall Easi designattd 50Lial comrtiiltee Milestonc d¢signated rnanagement eornmittee 577.020 4.904 6,046 114,707} 4.929 567,242 4,904 6,1)46 3,526 3.526 8,806 126 1650) 8,156 126 Milcslone designated mission Milestone designated Traid¢rafi Orphir designsicd fabric OrphiT designalcd memorial Orphsr debignaied organ phir designaied reserve Papay designalcd fabiii Papay designated turbine Rou5ay d¢signaied fabri Rou5ay designated fabric Guild Sanday desigD8ted fabric Sliapin5ay de51gnaied fabric Sironsay designated fabrie Westray designated fabric (6961 215 1.747 4,424 1,438 16,714 2.200 10,000 4,487 3.732 131,400 3,534 11,7471 14.424) {1.4381 16,714 2,200 7,977 12,0231 14,4871 13,732} 1131.400) 3,534 40,827 56,643 40,827 56.643 General fund Stromness Geneial Fund 39,628 25,304 1,177,124 2,915.920 {27,6441 121,532 194,524 (37,2881 185.914 6.188 1,241,506 2,767,212 39.628 Total funds 39,908 3 394,374 1213.3041 3,220,978 AtlJan At31 Dee 2023 Income Expenditure Trin$fers 2023 Endowrnent funds Restricted funds Srromne5s Guild 363 1,912 895 1.1001 280 Unrestri¢t¢d fund5 General Fund 36,273 32,264 30,009 1.100 39.628 Total fund5 36.636 34.176 30,91H 39.908 23

Notes forming part of the financi81 statements for the year ended 31 December 2024 16. Cont'd Transfers from lh¢ End0￿￿nent funds represent interest received used for Sironsay buildings upkeep and general congr¢gaiional PUTP05es which was spent by ihe General Fund. Transfer5 from Ihe Restricted funds r¢present Guild donations l£1,050} to the General fund together with reimbursement of the Getheral fut]d for fabn¢ maintenance (Kirkwall East maJnienance} and general congregational purpose5 Wlthin Sanday church (Sanday Stewart bequ¢stl Pur oses of Endowment Fund$ Income from the East Mainland Brechin Bequest is io be ll5ed for general running ¢osis Income from rhe East Maittland Gorn beqllest is lo be used for general running costs Income from the Captain John Swan Memorial bcquest is to be used for the b¢n¢fit of the parish in Eiloy. Inconie from the Mcil bequest may be used for general PUTPO.ies. Income froni the Coopcr. ChalmeTS, Groat. Smiih. Spencc. Peace and Twalt Bequests is to be used for genero1 Stronsay ¢tsngrcgalional purpÉ)ses Incoine frorn th¢ Mattcllr, Spence artd Shearer Beque$t is to be used for the upkeep of Ihe Stron.4ay church. hall, manse and grounds. Pur o$t$ of Restricted Funds Th¢ Guild futjds arc to be u%¢d for the PUTP05es of Ihc relevani guild. The Stewart Bequests arc to be u8ed for ihe furtherancc of tht gospel. pastoral care, Christian education artd missionary outreach within the respcctivt paT]shes of Eday. Westray, Papa Westray, Rou5ay, Sanday. Stronsay, Shapinsay and North Roi)aldsay The Eagl Mainland fabn¢ fund is for upkeep of the kiTk and manse. The Easi Mainland OTgan fund is for purchase and niainienattce of all aspects of music related to wtsrship. The East Mainland Parishioners fund i5 for distribuiion to parishioners al Christmas. Thc Kirkwall Easi 14air Trade fund is for prornuiion of fair Irade practices The Kirkwall Easi mainienan¢e tiind is a fund administered to a"LJfe Cycle Works" schelne for King Sireei Ha115 The mala￿,1 Partnership fund is for supporting Thyolo Pr¢5bytery in Malawh with various charitable projecis under a partncrship #greemeni The Milestone messy kirk fund 15 for Messy kirk use. The S¢artli Memorial fund is for provision of flower$ Milestone church The nonh isles fund is for supporting Ihe mission work of Westray, Sttonsay and other Outer North Isle5 churches. The Sartday music tund is for upk¢¢p of the organ and purchase of tnu51t. The Shapinsdy Flower Fund is IO Provide flowers for display during w'OT5hip The Shapinsay Rcflectivc Routts fund is for a wellbeing project producing a booklet of walks. wl)ich has bcen Compleied. The Shapinsay Reflective Space rnaintenonce fund is for maintenance of ihe space South RortaliL%ay & ButTay bible fund is for ih¢ purchase of ne￿, biblc5 Souih Ronaldsay & Burray youth fund is for youth projects. Thc Sironsay Tnusic fund is foT providing music resources and to coniribute towards ihe c05t ()f a replacement organ The Sironsay prupemy maillten(In¢e fund is for the niainienance uf ihe Stron5ay Church and mansc. 24

Notes formiDg part of the financi81 statements for the year ended 31 December 2024 16. Cont'd Pur o$es of Desi Dated Funds F8bric'. The Trustees have set aside funds for the Tnainienance of the respective church properties. Caihdral Candle fvnd is for distribution io good causes Cathedral choir fi]nd is for the use of ihe Cathedral choir Cathedral Toddlers is for the moiheTS and toddlers grovp St Magnus Centre is for the operation of the Ccntre a5 Outreach into the community Kirkwall East Social ¢ommittce fund is for involving the wider eongregation in social and chariiable actLVitie$ Kirkwall East designated outreach 15 for outreach activilie5 King Street Halls is for the operation of Ilie King s¢￿et Halls as ouireath inlo the community Mile51one mission fi]nd 15 for Thission Milestone TTaidcraft fund is for Traid¢raft West Milesionc maE)agcment Committee fund is for the coiwnittee's use in relation 10 the church building 0￿h1[ memorial fwid is for memorials. OrphiT vr¥art fund is for maintenance of Orphir's organ Orphir reserve fllnd is set aside for unforeseen requirements Papay turbille fund is for mainlenan¢¢ of *hc turbine for Papa Westray's church 17. Collection5 for Thlrd PArties 2024 2023 Christian Aid 1,532 768 DEC Earthquake appeal Orkney Foodbank ShelicrBox 334 1,789 loo 771 Orkney Presbytery Malawi Fund Fami Afriea 65 RSAIB 232 Blyihswood Poppy Sci)Iland Royal British Legion Scotland GOGO Olive Soma's Light Westray Inter-kirk Ecumcnical Fund Chiisi12n Blind M15sitsn 30 57 429 80 410 464 130 Water Aid W¢51Tay & Papay pa5tOTal fund 201 70 5,489 1,989 25

1. Cash gènerated from operations 2024 2023 SuTplusl{dcficit) for the year Adjustments for: Deprccialio Non cash balances tratJsfe￿td on union Investmcnl incoine recugnized in statemeni of fhnancial activsties Movemenis it) workirhg capiial.. Ilncrease}/decrease in stoek5 (Increase) in debturs {De¢reasel in creditors 3,181.070 4,234 12,470 {1,837,8271 128,435) {6941 139,4181 36.809 2,168 14,5451 Cash generat¢d from optratlons 1.323.975 1264
2. Analysis of net 45$ets 4¢quired At 1110124 Asset$ atqulred Fixed asseis Current assets Currcnt liabilities Total net assets &cquir¢d on union ,282.851 1.852,445 3,135,296
3. Capital commitments A5 ai 31 DccembeT 2024, Ihc charity had ¢niered Into a ¢apital commilment io purchase solar PV panel% for Birsay Ha￿aY and Sandwi¢k church totalling £44,029. 26

APPENDIX FUNDS HELD ON BEHALF OF THE CONGREGATION BY THE CHURCH OF SCOTLMD GEIYERAL TRUSTEES 2024 2023 CAPITAL ACCOUNT Credil B8lance8 held at 31 December at cost 1,018.302 MaTkei Value of Balance5 at 31 December 1.096,974 REVENUE ACCOUNT Credit Balance at 31 December 233,505 TEi¥IPORIRY ACCOUNT Credit Balance at 31 Dccemb¢r 341,172 291,364 27