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.
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Cradlch811 Business Park
Inverness
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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

r4
rryTr4*
r40
4¢ri ty4ry

c-
r￿c￿0
rA
#&££#

ococts
cc
r4
>%X¥

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

18. 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
19. 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
10. 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