Knockbain Free Church of Scotland
Scottish Charity No. SC 004591
Knockbain Free Church of Scotland
Trustees’ Report and Financial Statements For the Year Ended 31 December 2024
Knockbain Free Church of Scotland
Contents of the Financial Statements for the year ended 31 December 2024
| Page | |
|---|---|
| Church Information | 1 |
| Report of the Trustees | 2 - 4 |
| Report of the Independent Examiner | 5 |
| Receipts and Payments Account | 6 |
| Statement of Balances | 7 |
| Notes to the Financial Statements | 8 - 9 |
Knockbain Free Church of Scotland
Church Information
Trustees
A list of active trustees during 2024 is provided in the Trustees’ Report on Page 2 and 3.
Address
Ferry Brae North Kessock Inverness IV1 3YH
www .knockbainfreechurch.org
Bankers
Royal Bank of Scotland Falcon Square Inverness IV2 3PP
Solicitors
Wright Johnston and Mackenzie The Green House Beechwood Park North Inverness IV2 3BL
Independent Examiner
1
Knockbain Free Church of Scotland
Report of the Trustees
The Trustees are pleased to present their report together with the financial statements of the church for the year ended 31 December 2024.
Status of Charity and Governing Document
Knockbain Free Church of Scotland is established by Constitution. It is a registered Scottish Charity (No. SC 004591).
Aims and Affiliation
The Free Church of Scotland currently has around 100 congregations in Scotland, as well as one in London and three in North America, and sister Churches founded by mission work in India, Peru and South Africa. The Church also has a full-time degree awarding college in the heart of Edinburgh for the training of Ministers and other Christian workers.
Dating from 1843 but with its roots in the Reformation, it owes its distinctive title to its historical struggle to remain ‘free’ from state interference in its internal affairs. It has close and active relations with many other Reformed churches of Jesus Christ throughout the world and stands firmly in the tradition which accepts the Bible in its entirety as the Word of God. One of the emphases of our worship is the preaching of the gospel - the good news of a free and sovereign salvation through Jesus Christ alone.
Knockbain Free Church of Scotland is a congregation of the national Free Church of Scotland (Scottish Charity No. SC 012925) working towards the common aims set out above. The congregation is within the Presbytery of Inverness, Lochaber and Ross and is authorised by the Church to have a Minister paid from the central funds of the Church.
The Church building and the Minister’s manse are the property of the congregation and are held in trust by locally elected congregational Trustees under the Church’s Model Trust Deed.
Trustees and Office Bearers
The congregation is governed and administered by elected office bearers (all volunteers) and its Minister. The Kirk Session, being the Minister and elected Elders, has responsibility for spiritual oversight, while the Property and Finance Committee, composed of Kirk Session members plus nominated committee members, oversees financial and property matters. Under Charity Law, the Property and Finance Committee is deemed to be the trustees of the congregation as those with responsibility for day to day management and control. This is distinct from the role of congregational Trustees who are responsible only for holding property in trust.
The members of the Property & Finance Committee who served since the beginning of the year were as follows:-
Property & Finance Committee
Elders Members Minister
2
Knockbain Free Church of Scotland
Report of the Trustees (continued)
Congregational Trustees
For holding Property -
Appointment of Charity Trustees
The Kirk Session exercises its discretion in determining the most appropriate method of electing new Trustees (Elders and Deacons) and the congregation elect property and finance committee trustees. Any election process must involve the communicant membership of the congregation. There fixed term for committee Trusteeship is one year with reelection possible at the Annual General Meeting. Prior to their appointment, new Trustees would have served the Church for some time in various roles and would be familiar with the Church’s values, its aims and objectives as well as its day-to-day operations. As part of their induction programme, new Trustees are required to understand their statutory responsibilities as well as the responsibilities of their office within the congregation as elder or deacon or members of the property and finance committee.
Activities and Achievements
During the year, the congregation met regularly for public worship and carried out various activities in pursuit of the above stated aims.
The congregation continued its commitment to support the national Free Church of Scotland both spiritually and financially.
Significant highlights, events and developments of note in the year include the following: -
In relation to property.
-
There was significant works undertaken with the church building to freshen and improve the facilities resulting in a cost of £10,497 for repairs and renewals. This included £3,422 in June and £1,590 in November for the 5-year mandatory Electrical Installation Condition Report (EICR) and emergency lighting electrical work. Painting in the church cost £2,950 in September. Other costs included replacing the shed and providing a base for it.
-
With the above expenditure on the fabric of the church initially and the manse latterly, it was possible to request a transfer of £9,392 from the capital held by the Free Church for the sale of the former church, and use this to assist with these repairs and renewals.
In relation to congregational activities :
-
The North Kessock Youth Club for school children in p1-p5 continued for the year with a weekly after school youth club in North Kessock on Thursdays during school term times.
-
The Parent and Toddlers’ (“Little Dolphins”) Group met every Thursday morning from 10.30am to 12 noon during school term times.
-
The Ladies’ Bible Study group continued to meet fortnightly during term time.
-
Congregational fellowships continued occasionally throughout the year.
In relation to congregational funding: .
- Since the church was without a permanent minister in 2024 it was expected that congregational receipts would decline but the income and reserves have been adequate. The trustees continue to be grateful for the support of the congregation.
3
Knockbain Free Church of Scotland
Report of the Trustees
-
Overall. Whereas 2023 had a surplus of £10,683, the year 2024 has had a deficit of £14,919 but reserves remain more than sufficient. Income has fallen significantly from £103,809 to £74,088 but expenditure has only fallen marginally with the largest part of that expenditure being the continued Remittance to the Free Church for Central Funds. The expenditure fell from £93,126 to £89,007. In addition to the monthly Remittances costs the Trustees have taken the opportunity to undertake substantial repairs to the church, especially with the essential electrical and painting work.
-
Income. Gift Aided donations totalled £34,664 in 2024 whereas the previous year had that figure at £56,237. This was the major area of decreased income. Tax recovered on Gift Aid Donations reduced by £3,449 to £11,845.
-
The Plate Offerings decreased to £11,542 from £15,924 the year before. This is down significantly from £20,167 in 2022.
-
Expenditure. As already explained the largest part of the church’s costs relate to the monthly Remittance to the Free Church headquarters in order to pay ministers’ salaries and related costs. Regardless of the congregation being deemed ‘vacant’ the Remittance amount is based on the previous year’s General income as distinct from its Restricted income (the amounts that go to the Local Purposes and Fabric accounts). Knockbain was placed in Band D for 2024 and so normally remitted £3,642 each month, totalling £41,150 for the year, being 47% of the church’s total expenditure. Supply costs were paid to most of our weekly preachers over and above the monthly Remittance.
-
The church took the opportunity to undertake repairs and improvements amounting to £10,497 in the year.
-
Reserves. Despite the financial challenges in 2024 the church has maintained a healthy balance in its reserves with the overall amount falling from £129,484 to £114,564. The Unrestricted Fund, sometimes referred to as the ‘General’ Fund had a balance of £91,808 while the ‘Designated’ Funds (which are also Unrestricted) amounted to £9,953.
-
Restricted Funds . There are two Funds in this category. The Fabric Fund had £3,179 and the Local Purposes Account had a balance of £9,624 on 31 December 2024.
-
During the year the congregation donated £350 towards the Moldova Support Group. There was support for the Sudanese Reformed Church amounting to £600 and £1,000 was sent to the Free Church for Mission Support in May.
-
There were also donations for the International Mission to Jewish People, Women for Mission (WfM) and our Mission Worker.
Reserves
At the end of the year the church held Restricted Funds of £12,803 within the Fabric and Local Purposes Accounts. Unrestricted Funds amounted to £101,761 (General Fund of £14,873 held locally while funds held for the congregation by the Free Church in Edinburgh £76,935 and designated Fabric Fund, Missions Account and Benevolent Fund £9,953).
The Trustees are satisfied with the level of reserves retained by the charity.
On behalf of the Trustees
15 April 2025
4
Knockbain Free Church of Scotlalld Repoil of the Independent Examinei. to the Ti'llstees ofKnockbAln Flee Chw'ch of Scotland I report on the accounis of the cllurch for the year ended 31 December 2024 which are set out on pages 6 10 9. Respective responsibilities of trustees and examiner The clmity's trSlee$ are responsible for the preparaiion of Ille accoullts in accordance with the lerjns of the CIMities and Tnislee Investment (Scotland) Acl 2005 aiid the Charities Accoiults (Scotlalld) RelIationS 2(M)6 (as anieiided). The charity trustecs consider that tlie audit reqiiirement of Regidatioll 10(1) (d) of the 2006 Accounts Regulations does llot apply. It is llly responsibihry io exlll11e tlle accoullts as required under sectioll 44(1) {c) of the Acr and to state whether particular mallers have come to my attention. Basi5 of independent examiner's statement My eXninatIon is canied oiit in accordance witli Rcgiilation I l of the Charities Accoiults (Scotland) R¢IlationS 2006. All examination includes a review of tlLe accounriIig records kept by tbe chariry and a comparisoIi of rhe accounts presented with those records. It also includes consideration of ally unUsi1 items or (hsclosiu'es in the accoiiiits. and seeks explanations frffln the tThteeS concerning Mich mattels. The proced1eS imdertaken do nol proviik all the evidence that would be requited in aiidit and, conseqllently, I (k> llol express an audit opinion Oll the view given by ttLe accounts. Independent examiner's statement In the course of my examination. no matter come to my attention'._ l. which gives me reasollable cause to believe that. in any material respect. the requirelllellts.. to keep accOltillS records iii accordance with Section 44(1)(a) of the 2005 Act a[ Regulation 4 of the 2006 Accollllts Regulaiiolls. alld 10 prepare accol[$ wknch accord with the accollnling records and comply with Regulaiion 9 of the 2006 Accoullts Regulauolls have not been met. or 2. to which. in my Opinio attention should be drawn in order to enable a woper Ullderstallding of the accounts to be reached.
Knockbain Free Church of Scotland Receipts and Payments Accounts
For the year ended 31 December 2024
| Notes Receipts Gift Aid giving Gift Aid-Tax Recovered ChurchDoorcollections Other donations(not Gift Aided) Bankinterestandotherinterest Magazines Other donations Legacy Total Receipts Payments Payments forCharitableactivities RemittancestoCentral funds Pulpit Supply and Communion Expenses Minister's expenses Church & Manse Insurance Heat &Light Local Purposes Telephone Repairs & Renewals CouncilTax/Water & Sewage PresbyteryExpenses Donations Sundry Expenses Magazines Total Payments Net payments/(receipts) Interfundtransfers Surplus/(deficit) foryear Totalfundsbrought forward Totalfunds carried forward Represented by: GeneralFund Proceedsofsale of former Church Designated Funds(pernote 4) Totalunrestricted funds RestrictedFunds(per note5) |
UnrestrictedFunds Restricted General Fund Designated Funds Funds Total 2024 Total 2023 £ £ £ £ £ 32,514 2,150 34,664 56,237 11,312 533 11,845 15,294 11,542 11,542 15,924 8,168 5798,746 10,985 3,306 26 3,332 2,282 224 224 537 1,816 919 2,735 550 - 1,000 1,000 2,000 |
|
|---|---|---|
| 68,882 26 5,180 74,088 103,809 41,150 41,150 49,396 5,567 5,567 4,459 4,183 4,183 5,746 - 3,713 3,713 2,903 - 9,456 9,456 7,284 - 75 3,612 3,687 2,566 1,678 1,678 721 946 8,341 1,210 10,497 1,104 2,246 2,246 3,381 1,949 1,949 1,617 2,650 2,650 11,550 - 1,171 1,171 1,945 623 438 1,061 452 |
||
| 60,992 8,416 19,599 89,007 93,126 |
||
| 7,890 (8,389) (14,419) (14,919) 10,683 - - - - - |
||
| 7,890 (8,389) (14,419) (14,919) 10,683 83,919 18,342 27,222 129,483 118,801 |
||
| 91,808 9,953 12,803 114,564 129,484 |
||
| 14,873 14,873 898 76,935 76,935 83,022 9,953 9,953 18,343 |
||
| 91,808 9,953 101,761 102,262 12,803 12,803 27,221 |
||
| 91,808 9,953 12,803 114,564 129,484 |
6
Knockbain Free Church of Scotlalld As at 31st December 2024 2024 2023 Ballk & Ca$b Ill Openiti8 balances Trallsferred frojn Central Offiee account Sutplus1{Deficit) for the year excludin8 fillKts held at Central Offices 46,461 9J92 38,IX)I C]o$ing blaDre5 37,628 46,462 Fun(ts held at the CeDtt'81 Ornces (Procee(ts olsale orroiTrer Chllrch) OpeDJn¢ balallce Tran5faTed to Knockbain Maill accoullt IDleiesl on funds CIosill8 balanee 83.022 19,392) 80,800 70.935 Tot81 of mODelary sset5 held 114,564 129,484 Reserves UJ)r¢stri¢i¢d filnds Des1)ated fimds Restricted funds 91.808 9953 12003 83.919 18.343 27.222 129,484 Statement of Assets held for Cbgritable purposes at cost Cbiwch alld Manse Fixtures Fittings 1,861,(KM) 52.441 1.861.(KM) 52,441 1.913,441 1.913.441 Approved by the Trustees on 27 March 2025 alld 5i8lled on theirbebalf by the ulldellted..
The notes form part of these financial statements.
Notes to the Financial Statements
For the year ending 31st December 2024
1. Accounting Policies
Accounting Convention
The financial statements have been prepared under the historical cost convention, and in accordance with the Charities Accounts (Scotland) Regulations 2006.
Basis of financial statements
The financial statements have been prepared on a receipts and payments basis.
Fixed Assets
A statement of the fixed assets held for the purposes of the charity, namely the church and manse and fixtures and fittings, is shown in the statement of balances. These assets are shown at the original cost price. No depreciation has been applied as depreciation is a non-cash item and therefore should not be included in the receipts and payments account.
Receipts and Payments Account
For the purpose of the receipts and payments account, as shown on page 6, funds are defined as follows:
Unrestricted funds comprise grants and other income received for the objects of the church without further specified purpose and are available as general funds.
Designated funds represent unrestricted funds which have been earmarked by the trustees for particular purposes.
Restricted funds comprise income which has been received for the objects of the church and specified for a restricted purpose within these objects by the donor.
8
Notes to the Receipts and Payments Accounts
For the year ended 31 December 2024
2 Trustee remuneration
No remuneration was paid to any trustee during the year.
3 Trustee expenses
Payments were made to totaling £826 in respect of mileage incurred for pastoral visits
| 4 Unrestricted funds General Fund Proceeds of sale of former Church Designated funds: Fabric Benevolent Missions Total unrestricted funds |
Balance at Incoming Resources Balance at 01.01.24 resources expended Transfers 31.12.24 £ £ £ £ 897 65,576 (60,992) 9,392 14,873 83,022 3,306 0 (9,392 76,935 |
|---|---|
| 83,919 68,882 (60,992) - 91,808 16,514 (8,416) - 8,098 1,818 26 1,844 10 10 |
|
| 102,261 68,908 (69,408) - 101,761 |
Explanation of funds
The General Fund encompasses all income and expenditure relating to the primary focus activities of the charity, other than those for which funding is restricted.
The Designated Funds represents money set aside by the Deacons' Court from general income for the specific purposes noted above less the related expenditure paid from those funds
| 5 Restricted funds Fabric Local Purposes Total restricted funds |
Balance at Incoming Resources Balance at 01.01.24 resources expended Transfers 31.12.24 £ £ £ £ 954 2,225 3,179 26,268 2,955 (19,599) - 9,624 |
|---|---|
| 27,222 5,180 (19,599) - 12,803 |
Explanation of funds
Restricted Funds - represents gifts received specifically for these funds less the related expenditure paid from these funds.
6 Transfers between funds
There were no transfers between funds.
9