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 tr￿Slee$ 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) Re￿lIationS 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 ex￿lll11e 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 eX￿ninatIon 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 unUsi￿1 items or (hsclosiu'es in the accoiiiits. and seeks explanations frffln the tTh￿teeS concerning Mich mattels. The proced1￿eS 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 accOl￿tillS 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
579**8,746**
**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 b*laDre5 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 ulldell￿ted.. 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