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2024-11-30-accounts

CHARITY NO: SC005375

DIOCESE OF ARGYLL & THE ISLES

REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2024

DIOCESE OF ARGYLL & THE ISLES

REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2024

PAGE
Reference and Administrative Information 1
Report of the Trustees 2 – 7
Independent Auditor’s Report 8 – 11
Consolidated Statement of Financial Activities 12
Charity Statement of Financial Activities 13
Consolidated & Charity Balance Sheets 14
Consolidated & Charity Statement of Cash 15
Flows
Notes to the Financial Statements 16 – 37

DIOCESE OF ARGYLL AND THE ISLES

REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2024

REFERENCE AND ADMINISTRATIVE DETAILS

Charity Name: Diocese of Argyll and The Isles Registered Office and Operational Address: Diocesan Office St Moluag's Diocesan Centre Croft Ave Oban Argyll PA34 5JJ Charity Registration Number: SC005375 Trustees: Company Secretary: Auditors: Wbg (Audit) Limited 168 Bath Street Glasgow G2 4TP Bankers: Royal Bank of Scotland 26 George Street Oban PA34 4AT Solicitors: Twin Deer Law Ben Nevis Auction Mart Torlundy Fort William PH33 6SW Accountants: Ainsley Smith & Co. 21 Argyll Square Oban PA34 4AT

1

DIOCESE OF ARGYLL AND THE ISLES

Report of the Trustees for the year ended 30 November 2024

The Trustees present their report with the financial statements of the charity for the year ended 30 November 2024.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland.

The legal and administrative information on page one forms part of this report.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The United Diocese was formed in 1847 out of the vacant Sees of The Isles and of Argyll. The Diocese is constituted under and governed by the Canons of the Scottish Episcopal Church (Charity No. SC015962, and hereafter called "the Province"). The day-to-day operation of the Diocese is governed by the Diocesan Governing Regulations, adopted by the Diocesan Synod in March 2012 and amended in March 2018.

All Diocesan funds and properties are held in the names of the Bishop, the Dean, the Synod Clerk and the Registrar, pursuant to Resolution 7.1.3 of the Digest of Resolutions of the General Synod.

Organisational structure

The highest organ of governance within the Diocese is the Diocesan Synod. The Standing Committee is responsible to Synod for the administration of the Diocese, and its members for the time being are therefore regarded for the purposes of the Charities and Trustee Investment (Scotland) Act 2005 as the trustees of the charity. Standing Committee comprises a number of ex-officio members together with 5 members elected by the Diocesan Synod in accordance with the Diocesan Governing Regulations. The Canons assign certain property-related matters to the Diocesan Buildings Committee, with Standing Committee is exercising oversight. The Diocesan Synod resolved at its 2023 annual meeting that, in accordance with Provincial recommendations, the responsibility for supporting the move to net-zero by 2030 in order to combat climate change should be added to the Building Committee’s remit, and its title would become the Property and Environment Board.

The election process limits the opportunity for active recruitment and selection of trustees, but the ex officio members carry out an annual review prior to Synod in order to ensure that candidates with a mix of skills are presented for election. If, post-election, gaps in expertise are present, further members with the missing skills may be identified and co-opted, as provided for in the Governing Regulations, but this has not proved necessary to date.

Induction and training of new trustees is undertaken, in addition to updating and briefing of existing trustees. The package for new trustees is tailored to their previous knowledge and experience; many new trustees are familiar with the work of the Diocese, but all are provided with information on the applicability of the Canons of the Church, OSCR Trustee guidance and previous minutes / papers of Standing Committee meetings.

2

DIOCESE OF ARGYLL AND THE ISLES

Report of the Trustees for the year ended 30 November 2024

Standing Committee is responsible for setting stipends, salaries and honoraria of key management personnel. In most cases the key personnel are members of the clergy, receiving the stipend set by the Province. In the case of other personnel, remuneration is set by Standing Committee on appointment and reviewed annually, typically using the Standard Stipend uplift as a guideline. The Key Management Personnel are The Bishop ( , August 2024), The Dean ( ), The Secretary, and The Treasurer (set by the Standing Committee and reviewed annually). The remuneration packages for the Bishop and Dean are set by the Province and reviewed annually.

Relationships

The Diocese has a subsidiary charitable company Island Retreats Ltd, (Scottish Charity No: SC 023281) limited by guarantee, to run a retreat house in Iona and the Diocesan Centre in Oban. The members of the Standing Committee are the members of the company, and they elect a board of directors to carry out the day-to-day management of the house and the Diocesan Centre.

The Diocese took back the running of the College at Cumbrae in 2022 from Island Retreats Ltd with the College accommodation being let out to the company involved with the flood defence system for Millport. This arrangement was fortunate as during this time a SCIO has been formed by interested parties on and off the island of Cumbrae to look at the potential for this local group to run the College and Cathedral. This group have achieved a lot including raising grants to pay for a feasibility study and a development officer and are motoring on with raising more funds to bring their development plans to fruition. It is hoped that during 2025 the new charity will take over the whole responsibility for the buildings and grounds at Cumbrae. The Standing Committee have agreed to give these assets and a grant to the charity towards costs in the early stages of the project. However, this will be a one-off contribution, and no other costs will be sought by the charity for upkeep or maintenance.

The Diocese receives a block grant from the province for ministry and mission. The bulk of this is used to support priests’ stipends, in which case they are passed on directly to the charge which requires them. Other grants are given from time to time for ministry training and development. All grants given are to further the ministry and mission of the Diocese.

Risk management

The trustees manage risk by the following means:

The trustees have assessed the major risks to which the Diocese is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks, which include:

3

DIOCESE OF ARGYLL AND THE ISLES

Report of the Trustees for the year ended 30 November 2024

Risk management (continued)

The main strategy for managing these risks is to ensure that the Diocese follows best practice, by ensuring that there is backup for key personnel, that financial performance is reviewed on a regular basis and that measures are in place for checking the background of personnel who work with vulnerable groups, A task for the trustees is to assess the appropriate steps to take to minimise risk from future pandemics, learning from the Diocese’s actual performance during COVID. The increased emphasis on climate change from the Province will point to appropriate risk assessment for Dioceses, which the trustees will carry out.

The mission and ministry strategy for the Diocese, to which the Trustees are fully committed, involves investment in order to promote growth and in consequence increased income. The Trustees recognise the increased risk of this approach, and they are confident of their experience and ability to administer the activities of the Diocese in a way that manages this additional risk.

OBJECTIVES AND ACTIVITIES

The Diocese is one of seven Dioceses of the Scottish Episcopal Church and is governed by the Code of Canons of that church.

The objectives and main activities of the Diocese throughout the year have continued to be:

The Standing Committee acts as the Executive Committee of the Diocese between meetings of the Synod. It implements Synod decisions, supervises and receives reports on finance, buildings and mission, and prepares for Synod meetings. Its meets on a quarterly basis.

There has been a paid part time post of Diocesan Mission Enabler to support and encourage mission and development work across the Diocese, which has been delivered on a job-share basis; the post holders were supervised directly by the Bishop and reported their work to the Standing Committee. The work of the Mission Enablers is now complete and a new position of Canon Missioner will be filled to assist with Mission across the Diocese.

ACHIEVEMENTS AND PERFORMANCE

Charitable activities

The Diocese disbursed a total of £70,089 (2023: £108,901) in grants to Charges to assist with Mission & Ministry, clergy costs and travelling costs. Its mission and ministry activities include development, where appropriate, of Local Collaborative Ministry and have included the appointment of a Diocesan Mission Enabler.

The main beneficiaries of the Diocese as a charity are the individual congregations in Argyll and The Isles, who benefit from the missional leadership of the Bishop and the financial and other contributions made by the Diocese to their mission and ministry. Wider public benefits are provided in the main by the individual congregations rather than the Diocese.

During 2024 there was a legacy was received from estate. had lived his later years on North Uist and left his house and the residue of his estate to the Diocese, in total around £321,500 in value. The house has now been sold and the monies invested for the moment in SEC UTP units. will be remembered by the Diocese being able to use the legacy to maintain and expand its Mission and Ministry.

4

DIOCESE OF ARGYLL AND THE ISLES

Report of the Trustees for the year ended 30 November 2024

Charitable activities (continued)

The charity measures its success primarily through the reaction of its congregations to reports presented at the Synod and Conference, normally held annually but which was restricted in 2021, which is the formal reporting mechanism to its main beneficiaries. These reports include full financial information.

The Diocesan administrative team continues to provide help and give support to Charges who request it on administrative, governance and practical matters. The work of the Diocese is supported by a small and loyal staff, as well as many volunteers. Without their commitment the Diocese could not function.

FINANCIAL REVIEW

Results

The trustees' objective for the Diocese for the year under report was to deliver the required activities within the budget as approved at the beginning of the year. On the (unrestricted) General Fund, a group surplus of £224,221 (2023: deficit of £16,858) was recorded.

During the year the Diocese charged subsidiary Island Retreats, £Nil (2023 £6,250) loan interest and £5,000 (2023 £5,000) rental charge. These transactions have been eliminated in the consolidated results.

The main funding sources are:

Investment policy and performance

The overall policy is to invest prudently and take few risks that are not balanced by blue chip or gilt-edged positions. The emphasis is on generating income while maintaining reasonable capital value.

The investments held by the Diocese are now all held in the Scottish Episcopal Church Unit Trust Pool, the objective of which is to earn a return on the assets over the long term, sufficient to maintain the real value of the distribution to unit holders. Its performance in the year under report was outstanding, delivering overall yield of 2.8% (2023: 3.7%).

Reserves policy

It is the policy of the trustees to build and maintain cash reserves sufficient to meet operating costs for six months. The policy of the trustees is also to meet planned property maintenance costs with a reserve for unforeseen costs which would equate to £72,000 (2023: £72,000).

Current total funds held by the Diocese are £2,430,574 (2023: £1,960,379), of which £1,038,011 (2023: £769,738) are unrestricted. The charity’s free reserves are £438,701 being unrestricted reserves of £1,038,011 less amounts tied up in tangible fixed assets of £599,310.

There are no expenditure timing issues.

5

DIOCESE OF ARGYLL AND THE ISLES

Report of the Trustees for the year ended 30 November 2024

FUTURE DEVELOPMENTS

The trustees will continue the principal functions of the Diocese, namely the support of a bishop, the development of mission and ministry, and the support of charges in financial and administrative matters.

The Trustees are confident that this programme can be delivered within the anticipated income / expenditure envelope.

6

DIOCESE OF ARGYLL AND THE ISLES

Report of the Trustees for the year ended 30 November 2024

Trustees’ responsibilities in relation to the financial statements

The charity trustees are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice.)

The law applicable to charities in Scotland requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the group incoming resources and application of resources of the for that period. In preparing those financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and of the group and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement of disclosure to auditors

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

Approved by the Trustees and signed on their behalf by:

Date 8[th ] July 2025

7

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF DIOCESE OF ARGYLL & THE ISLES FOR THE YEAR ENDED 30 NOVEMBER 2024

Opinion

We have audited the financial statements of Diocese of Argyll & The Isles (the ‘parent charity’) and its subsidiary (the ‘group’) for the year ended 30 November 2024 which comprise the Group and Parent Charity’s Statement of Financial Activities, the Group and Parent Charity’s Balance Sheet, the Group and Parent Charity’s Statement of Cash Flows and the related notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these 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 trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and parent charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in Report and Financial Statements, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material

8

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF DIOCESE OF ARGYLL & THE ISLES FOR THE YEAR ENDED 30 NOVEMBER 2024

misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report 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 matters where the Charity Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 7, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group and parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charity or to cease operations, or have no realistic alternative but to do so.

Auditor responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

9

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF DIOCESE OF ARGYLL & THE ISLES FOR THE YEAR ENDED 30 NOVEMBER 2024

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures response to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing the risks or material misstatements in respect of irregularities, including fraud and non-compliance with laws and regulations we considered the following;

Based on our understanding of the charity and the sector we identified that the principal risks of non-compliance with laws and regulations related to, but were not limited to;

We considered the extent to which non-compliance might have a material impact on the financial statements. We also considered those laws and regulations which have a direct impact on the preparation of the financial statements, such as the Charities and Trustee Investment (Scotland) Act 2005, and the Charities Accounts (Scotland) Regulations 2006. We evaluated management and trustees’ incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of management override of controls), and determined that the principal risks were related to;

Audit response to the risks identified;

Our procedures to respond to the risks identified included the following:

In addressing the risk of fraud as a result of management override of controls, testing the appropriateness of journal entries and other adjustments; evaluating rationale of any significant transactions that are unusual or outside the normal course of business. Review of journals included but was not limited to the following areas

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

10

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF DIOCESE OF ARGYLL & THE ISLES FOR THE YEAR ENDED 30 NOVEMBER 2024

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Wbg (Audit) Limited (Statutory Auditor) 168 Bath Street Glasgow G2 4TP

Date: 8[th] July 2025

Wbg (Audit) Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

11

DIOCESE OF ARGYLL & THE ISLES

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDING 30 NOVEMBER 2024

(Including an Income and Expenditure account)

Income and endowments from:
Donations and legacies
Charitable activities
Other trading activities
Investments
Other incoming resources
Total Income
Expenditure on:
Raising funds
Other trading activities
Charitable activities
Total Expenditure
Net income / (expenditure) before
gains and losses on investments
Net gains on investments
Net income
Transfers between funds
Net movement in funds
Funds reconciliation
Total Funds brought forward
Total Funds carried forward
Note
4
5
6
7
8
9
11
17
23
23		 Unrestricted
Funds
Restricted
Funds
Endowment
Funds
Total
Funds
Unrestricted
Funds
Restricted
Funds
Endowment
Funds
2024
2024
2024
2024
2023
2023
2023
£
£
£
£
£
£
£
476,631
121,506
-
598,137
188,261
157,256
-
436,584
-
-
436,584
420,135
-
-
1,559
-
-
1,559
3,217
-
-
32,698
22,479
-
55,177
19,580
34,094
-
4,389
-
-
4,389
2,300
-
-		 Total
Funds
2023
£
345,517
420,135
3,217
53,674
2,300
951,861
143,985
-
1,095,846
633,493
191,350
-
2,962
-
-
2,962
1,647
-
-
724,678
77,433
-
802,111
648,704
165,267
-		 824,843
1,647
813,971
727,640
77,433
-
805,073
650,351
165,267
-		 815,618
224,221
66,552
-
290,773
(16,858)
26,083
-
82,422
98,946
88,475
269,843
18,387
24,200
21,657		 9,225
64,244
306,643
165,498
88,475
560,616
1,529
50,283
21,657
10,984
(10,984)
-
-
(17,388)
17,388
-		 73,469
317,627
154,514
88,475
560,616
(15,859)
67,671
21,657
934,734
937,777
527,634
2,400,145
950,593
870,106
505,977		 73,469
2,326,676
1,252,361
1,092,291
616,109
2,960,761
934,734
937,777
527,634		 2,400,145

The Statement of Financial Activities includes all gains and losses recognised in the year.

All income and expenditure derives from continuing activities.

12

DIOCESE OF ARGYLL & THE ISLES CHARITY STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDING 30 NOVEMBER 2024 (Including an Income and Expenditure account)

Note
Income and endowments from:
Donations and legacies
4
Charitable activities
5
Investments
7
Total Income
Expenditure on:
Charitable activities
Total Expenditure
Net income / (expenditure) before
gains and losses on investments
Net gains on investments
17
Net income / (expenditure)
Transfers between funds
Net movement in funds
Funds reconciliation
Total Funds brought forward
Total Funds carried forward		 Unrestricted
Funds
Restricted
Funds
Endowment
Funds
2024
2024
2024
£
£
£
468,073
121,506
-
110,311
-
-
30,830
22,479
-		 Total
Funds
Unrestricted
Funds
Restricted
Funds
Endowment
Funds
Total
Funds
2024
2023
2023
2023
2023
£
£
£
£
£
589,579
169,915
127,256
-
297,171
110,311
69,800
-
-
69,800
53,309
16,626
34,094
-
50,720
609,214
143,985
-		 753,199
256,341
161,350
-
417,691
415,147
77,433
-		 492,580
312,131
165,267
-
477,398
415,147
77,433
-		 492,580
312,131
165,267
-
477,398
194,067
66,552
-
63,222
98,946
47,408		 260,619
(55,790)
(3,917)
-
(59,707)
209,576
19,310
24,200
11,598
55,108
257,289
165,498
47,408
10,984
(10,984)
-		 470,195
(36,480)
20,283
11,598
(4,599)
-
(17,388)
17,388
-
-
268,273
154,514
47,408		 470,195
(53,868)
37,671
11,598
(4,599)
769,738
907,777
282,864		 1,960,379
823,606
870,106
271,266
1,964,978
1,038,011
1,062,291
330,272		 2,430,574
769,738
907,777
282,864
1,960,379

The Statement of Financial Activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

13

DIOCESE OF ARGYLL & THE ISLES

CONSOLIDATED AND CHARITY BALANCE SHEETS AS AT 30 NOVEMBER 2024

Note
Fixed assets:
Tangible assets
15 & 16
Investments
17
Total fixed assets
Current assets:
Investments
17
Stocks
18
Debtors
19
Cash at bank and in hand
27
Total current assets
Liabilities:
Creditors falling due within
one year
20
Net current assets
Total assets less current
liabilities
Creditors: Amounts falling
22
due after more than one
year
Net assets
The funds of the charity:
Unrestricted Funds
23
Restricted Funds
23
Endowment Funds
23
Total charity funds		 Group
2024
£
808,911
1,879,564
2,688,475
503,875
684
94,675
349,534
948,678
(630,312)
318,456
3,006,931
(46,170)
2,960,761
1,252,361
1,092,291
616,109
2,960,761		 Group
2023
£
824,429
1,423,922
2,248,351
385,730
665
58,833
288,145
733,373
(539,576)
193,797
2,442,148
(42,003)
2,400,145
934,734
937,777
527,634
2,400,145		 Charity
2024
£
599,310
1,593,727
2,193,037
340,973
-
81,575
211,552
634,100
(396,563)
237,537
2,430,574
-
2,430,574
1,038,011
1,062,291
330,272
2,430,574		 Charity
2023
£
613,687
1,179,151
1,792,838
292,029
-
72,628
149,364
514,021
(346,480)
167,541
1,960,379
-
1,960,379
769,738
907,777
282,864
1,960,379

Approved by the trustees and signed on their behalf by:

Date: 8[th] July 2025

14

DIOCESE OF ARGYLL & THE ISLES STATEMENT OF CASH FLOWS AND CONSOLIDATED STATEMENT OF CASHFLOWS FOR THE YEAR ENDING 30 NOVEMBER 2024

Note
Cash flows from operating
activities:
Net cash provided by / (used
25
in) by activities
Cash flows from investing
activities:
Dividends, interest and rents
from investments
Purchase of investments
Proceeds from the disposal of
investments
Interest paid
Proceeds from disposal of fixed
assets
Purchase of fixed assets
Net cash (used in) / provided
by investing activities
Cash flows from financing
activities:
Repayment of loans
Net cash (used in) investing
activities
Change in cash and cash
equivalents in the year
Cash and cash equivalents
27
brought forward
Cash and cash equivalents
27
carried forward		 Group
2024
£
344,918
55,177
(255,000)
-
(1,250)
134,872
(206,605)
(272,806)
(10,723)
(10,723)
61,389
288,145
349,534		 Group
2023
£
(125,520)
53,674
(100,000)
572,429
(927)
-
(252,246)
272,930
(14,988)
(14,988)
132,422
155,723
288,145		 Charity
2024
£
278,082
53,309
(205,000)
-
-
130,872
(75)
(75)
62,188
149,364
211,552
(195,000)
(215,819)		 Charity
2023
£
89,411
50,720
(100,000)
250,001
-
-
(252,233)
(5,261)

(51,512)
(5,261)
32,638
116,726
149,364

15

DIOCESE OF ARGYLL & THE ISLES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 NOVEMBER 2024

1. Accounting Policies

(a) Basis of preparation and assessment of going concern

The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts.

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006.

The financial statements consolidate the results of the wholly owned subsidiary, Island Retreats Ltd, on a line by line basis.

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

The Trustees have considered a period of twelve months from the date of signing these accounts and are satisfied that the group remains a going concern.

The charity’s presentational currency is sterling, which is the functional currency of the charity, and amounts in the financial statements are rounded to the nearest £.

(b) Funds structure

Unrestricted income funds comprise those funds which the trustees are free to use for any purpose in furtherance of the charitable objects. Unrestricted funds include designated funds where the trustees, at their discretion, have created funds for specific purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donor or charity’s constitution, or through the terms of an appeal.

Endowment funds are permanent or expendable capital funds.

Further details of each fund are disclosed in note 23.

(c) Income recognition

Income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Donations, are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

16

DIOCESE OF ARGYLL & THE ISLES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 NOVEMBER 2024

1. Accounting Policies (continued)

Legacy gifts are recognised on a case by case basis following the granting of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the charity.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by our investment advisor of the dividend yield of the investment portfolio.

Income from government and other grants, whether ‘capital’ or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met (see note 21).

(d) Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings. For more information on this attribution refer to note (f) below.

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty as to the timing of the grant or the amount of grant payable.

The provision for a multi-year grant is recognised at its present value where settlement is due over more than one year from the date of the award, there are no unfulfilled performance conditions under the control of the charity that would permit the charity to avoid making the

17

DIOCESE OF ARGYLL & THE ISLES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 NOVEMBER 2024

1. Accounting Policies (continued)

future payment(s), settlement is probable, and the effect of discounting is material. The discount rate used is the average rate of investment yield in the year in which the grant award is made. This discount rate is regarded by the trustees as providing the most current available estimate of the opportunity cost of money reflecting the time value of money to the charity.

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

(e) Donated services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably.

(f) Allocation of support and governance costs

Support costs have been allocated between governance costs and other support costs. Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees together with an apportionment of overhead and support costs.

Governance costs and support costs relating to charitable activities have been apportioned based on the number of individual grant awards made in recognition that the administrative costs of awarding, monitoring, and assessing research grants, salary support grants and postgraduate scholarships are broadly equivalent. The allocation of support and governance costs is analysed in note 10.

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 amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

(g) Tangible fixed assets and depreciation

All assets costing more than £2,000 are capitalised and valued at historical cost. Depreciation is charged as follows:


ed as follows:
Basis
Land & buildings 2-20% on cost
Plant and machinery 15% on reducing balance
Motor vehicles Over 10 years

(h) I nvestments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year. These amounts are disclosed as current asset investments as they can be accessed at short notice if required.

The Charity does not acquire put options, derivatives, or other complex financial instruments.

18

DIOCESE OF ARGYLL & THE ISLES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 NOVEMBER 2024

1. Accounting Policies (continued)

(h) Investments (continued)

The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

To maximise returns to the group, surplus cash balances held by the charity invested. These amounts are disclosed as current asset investments as they can be accessed at short notice if required.

(i) Heritage assets

The charity has a heritage asset in the form of The Cathedral and College, Cumbrae. The operation of the Cathedral and College contributes to the charity’s aims of spiritual and educational support. Members of the public have access to the assets during normal opening hours. The company is also responsible for preserving the asset in an excellent condition at times requiring input and advice from Historic Scotland. The charity has no intention of either acquiring further heritage assets or disposing of its current heritage asset and therefore a policy is not reported. Due to the nature of the asset held and the lack of comparable market values the asset is not recognised in the balance sheet.

(j) Stock

Stock is included at the lower of cost or net realisable value.

(k) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

(l) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

(m) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

(n) Realised gains and losses

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

19

DIOCESE OF ARGYLL & THE ISLES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 NOVEMBER 2024

1. Accounting Policies (continued)

(o) Contingent liabilities

A contingent liability is identified and disclosed for those grants resulting from:

(p) Taxation

The Diocese is a charity within the meaning of Section 467 of the Corporation Tax Act 2010. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 of Part 11 of the Corporation Tax Act 2010 and section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that such income or gains are applied for charitable purposes only.

(q) Employee Benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

2. Legal status

The charity is registered in Scotland under the Charities and Trustee Investment (Scotland) Act 2005.

3. Related party transactions and trustees’ expenses and remuneration

Trustees of the Diocese have received the following during the year:

: Salary, NI & Pension £Nil (2023 - £40,080). No Contributions were made to a pension fund on behalf of the Bishop, (2023 - £10,792).

: Salary, NI & Pension £15,391 (2023 - £Nil). Contributions were made to a pension fund on behalf of the Bishop, totalling £2,976 (2023 - £Nil).

Treasurer: Salary & NI £17,678 (2023 - £16,268). Contributions were also made to a pension fund on behalf of , totalling £5,774 (2023: £5,375).

: Salary & NI £12,142 (2023 - £20,643). Contributions were also made to a pension fund on behalf of , totalling £3,989 (2023: £7,011).

Expenses were paid to five trustees in the year totalling £4,631 (2023 – five trustees totalling £5,383).

20

DIOCESE OF ARGYLL & THE ISLES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 NOVEMBER 2024

3. Related party transactions and trustees’ expenses and remuneration (continued)

During the year, no donations were made by related parties (2023 - None).

, Treasurer of the Diocese is a director and shareholder of Ainsley Smith & Co. Chartered Accountants. Accountancy fees of £6,708 (2023 - £6,874) were paid to the firm by the charity during the year. The total fees charged to the group in the year amounted to £14,043 (2023: £11,900), £7,500 of this is included in group’s accruals at 30 November 2024 (2023: £11,900).

Except for the transactions noted above no other trustee or other person related to the charity had a personal interest in any contract or transaction entered into by the charity during the year.

4. Income from donations and legacies

Donations
General grants
Legacies
Quota contribution		 Group
2024
2023
£
8,378
£
42,874
134,194
168,643
321,565
-
134,000
134,000
598,137
345,517		 Charity
2024
2023
£
-
£
5,348
134,014
157,823
321,565
-
134,000
134,000
589,579
297,171		 Charity
2024
2023
£
-
£
5,348
134,014
157,823
321,565
-
134,000
134,000
589,579
297,171
297,171

5. Income from charitable activities

Accommodation Group
2024
2023
£
£
436,584
420,135
436,584
420,135		 Charity
2024
2023
£
£
110,311
69,800
110,311
69,800		 Charity
2024
2023
£
£
110,311
69,800
110,311
69,800

69,800

6. Income from other trading activities

Goods for resale Group
2024
£
2023
£
1,559
3,217
1,559
3,217		 Charity
2024
£
2023
£
-
-
-
-

The charity has a wholly owned charitable subsidiary Island Retreats Limited, which is incorporated in the Scotland. This year the subsidiary reported a surplus of £90,421 (2023: surplus of £78,068). A summary of the trading results is shown below.

21

DIOCESE OF ARGYLL & THE ISLES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 NOVEMBER 2024

6. Income from other trading activities (continued)

The summary financial performance of the subsidiary is:

INCOME
Donations and legacies
Charitable activities
Other trading activities
Investment income
Other income
RESOURCES EXPENDED
Raising funds
Other trading activities
Charitable activities
Net income resources
Gain on investments
Net income		 Y/E
30 November
Y/E
30 November
2024
2023
£
£
8,558
48,346
336,273
350,335
1,559
3,217
11,868
19,203
4,389
2,300
362,647
423,401
2,962
1,647
329,531
352,822
332,493
354,469
30,154
68,932
60,267
9,136
90,421
78,068

At 30 November 2024 the assets and liabilities of the subsidiary were:

Fixed assets
Current assets
Current liabilities
Long term liabilities
Total net assets
Unrestricted funds
Restricted income funds
Endowment funds
Total funds		 2024
£
2023
£
495,438
455,512
320,022
238,999
(239,103)
(212,742)
(46,170)
(42,003)
530,187
439,766
214,350
164,996
30,000
30,000
285,837
244,770
530,187
439,766

22

DIOCESE OF ARGYLL & THE ISLES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 NOVEMBER 2024

7. Investment income

Dividends – equities
Bank interest
Loan interest
Rent
Salary recharge
8.
Other income
Miscellaneous income
Gains on disposal of tangible fixed
assets		 Group
2024
2023
£
50,542
£
53,594
137
80
1,298
-
3,200
-
-
-
55,177
53,674
Group
2024
2023
£
£
2,800
2,300
1,589
-

4,389
2,300		 Charity
2024
2023
£
38,674
£
34,094
137
80
1,298
6,546
8,200
5,000
5,000
5,000
53,309
50,720
Charity
2024
2023
£
£
-
-
-
-

-
-		 Charity
2024
2023
£
38,674
£
34,094
137
80
1,298
6,546
8,200
5,000
5,000
5,000
53,309
50,720
Charity
2024
2023
£
£
-
-
-
-

-
-
-

9. Raising funds – expenditure on other trading activities – Group

Goods for resale
Goods for resale		 Direct
Support
Total
Costs
£
Costs
£
2024
£
2,962
-
2,962
2,962
-
2,962
Direct
Support
Total
Costs
Costs
2023
£
£
£
1,647
-
1,647
1,647
-
1,647

23

DIOCESE OF ARGYLL & THE ISLES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 NOVEMBER 2024

10. Allocation of governance costs – Group

0.Allocation of governance costs – Group
Governance costs:
Accountancy fees
Legal fees
Auditor’s remuneration
Synod committee costs
Allocation of governance costs:
Provision of religious support and administration
Accommodation
Total allocated		 2024
£
2023
£
14,013
14,444
1,688
15,662
15,765
14,700
3,624
5,305


35,090
50,111
2024
£
2023
£
19,152
20,579
15,938
29,532
35,090
50,111

11. Analysis of expenditure on charitable activities - Group

Grants paid out
Clergy costs
Property costs
Loss on disposal
Clergy office costs
Provincial Quota
Management costs
Training and Education
Loan interest
Staff costs
Office costs
Travel costs
Food purchases
Depreciation
Repairs/ maintenance
Other costs
Governance costs
(note 10)		 Provision of
religious
support and
Total
administration Accommodation
2024
£
£
£
70,089
-
70,089
54,981
-
54,981
142,328
51,991
194,319
64,128
-
64,128
28,800
-
28,800
25,097
-
25,097
52,165
-
52,165
1,463
-
1,463
-
1,250
1,250
-
157,926
157,926
-
8,454
8,454
-
1,891
1,891
-
45,351
45,351
14,377
10,335
24,712
-
28,781
28,781
-
7,614
7,614
19,152
15,938
35,090
472,580
329,531
802,111

24

DIOCESE OF ARGYLL & THE ISLES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 NOVEMBER 2024

11. Analysis of expenditure on charitable activities – Group (continued)

Grants paid out
Clergy costs
Property costs
Clergy office costs
Provincial Quota
Management costs
Training and education
Loan interest
Staff costs
Office costs
Travel costs
Food purchases
Depreciation
Repairs/maintenance
Other costs
Governance costs
(note 10)		 Provision of
religious
support and
Total
administration Accommodation
2023
£
108,901
£
-
£
108,901
71,737
-
71,737
142,713
48,940
191,653
2,994
-
2,994
24,515
-
24,515
75,935
-
75,935
15,662
-
15,662
-
922
922
-
139,642
139,642
-
9,007
9,007
-
2,147
2,147
-
52,909
52,909
-
20,099
20,099
-
39,177
39,177
-
8,560
8,560
20,579
29,532
50,111
463,036
350,935
813,971

12. Analysis of grants

2.Analysis of g rants
Stipend
Support
Travel grant
Ministry grant
Arran grant
Dean’s Travel
expenses &
Allowance
Duror grant
Small grants
Total		 Grants to
institutions
£
Grants to
individuals
£
2024
Total
£
Grants to
institutions
£
Grants to
individuals
£
2023
Total
£
48,047
-
48,047
94,396
-
94,396
5,000
-
5,000
-
-
-
8,000
-
8,000
-
7,500
7,500
3,600
2,317
5,917
-
-
-
2,985
-
2,985
1,875
-
1,875
2,500
-
2,500
-
1,250
1,250
-
1,520
1,520
66,522
3,567
70,089
96,896
12,005 108,901

25

DIOCESE OF ARGYLL & THE ISLES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 NOVEMBER 2024

12. Analysis of grants (continued)

Recipients of institutional grant(s):
St Peter’s, Stornoway
Christ Church, Lochgilphead
The College of the Holy Spirit, Cumbrae
WHR
St Johns Cathedral Oban
St Adamnan, Duror
St Margaret, Arran
Curate
Fort William
Dunoon
Portree
Campbeltown
Total		 2024
Total
£
2023
Total
£
3,690
12,832
22,740
18,125
-
8,500
16,667
15,783
13,800
-
1,875
2,500
400
300
-
33,906
1,000
-
4,250
2,950
1,700
1,700
400
300
66,522
96,896

13. Analysis of staff costs and remuneration of key management personnel

Salaries and wages
Social security costs
Pension costs
Total staff costs and employee
benefits
Key Management Personnel
remuneration		 Group
2024
2023
£
£
210,186
226,987
13,068
14,174
21,802
30,861
245,056
272,022
Group
2024
2023
£
£
96,884
100,349		 Charity
2024
2023
£
£
71,997
114,643
446
6,945
19,688
10,792
92,131
132,380
Charity
2024
2023
£
£
57,951
67,139

No employees had employee benefits in excess of £60,000 (2023: no employees).

The average number of persons, by headcount, employed by
the group during the year was:		 2024
No.
2023
No.
9
11

26

DIOCESE OF ARGYLL & THE ISLES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 NOVEMBER 2024

14. Net income/(expenditure) for the year

This is stated after charging:
Depreciation
Auditor’s remuneration:
Audit fees charity
Audit fees subsidiary		 Group
2024
2023
£
24,712
£
20,099
8,820
8,400
6,945
6,300		 Charity
2024
2023
£
14,377
£
9,362
8,820
8,400
-
-

15. Tangible Fixed Assets - Group

Cost or valuation
At 1 December 2023
Additions
Disposals
At 30 November 2024
Depreciation
At 1 December 2023
Charge for the year
On disposals
At 30 November 2024
Net book value
At 30 November 2024
At 30 November 2023		 Plant
Land &
&
Buildings
Machinery
£
£
1,189,509
202,085
-
206,605
-
(202,167)		 Motor
Vehicles
Total
£
£
5,000
1,396,594
-
206,605
-
(202,167)
1,189,509
206,523		 5,000
1,401,032
387,698
179,880
20,188
4,400
-
(4,756)		 4,587
572,165
124
24,712
-
(4,756)
407,886
179,524		 4,711
592,121
781,623
26,999		 289
808,911
801,811
22,205		 413
824,429

At 30 November 2024 all assets were used for charitable purposes.

27

DIOCESE OF ARGYLL & THE ISLES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 NOVEMBER 2024

16. Tangible Fixed Assets - Charity

6. Tangible Fixed Assets - Charity
Cost or valuation
At 1 December 2023
Additions
Disposals
At 30 November 2024
Depreciation
At 1 December 2023
Charge for the year
At 30 November 2024
Net book value
At 30 November 2024
At 30 November 2023		 Plant
Land &
&
Buildings
£
Machinery
£
Total
£
710,323
14,699
725,022
195,000
-
195,000
(195,000)
-
(195,000)
710,323
14,699
725,022
97,772
13,563
111,335
14,207
170
14,377
111,979
13,733
125,712
598,344
966
599,310
612,551
1,136
613,687

Due to the unique nature of some of the properties owned by the Diocese and the difficulty in obtaining a true and accurate valuation of these, no valuations are reflected in the balance sheet. The relevant properties have insurance values as follows:

Diocese Centre £738,558
Bishops House, Iona £4,242,698
College & Cathedral, Cumbrae £9,393,095

At 30 November 2024 all assets were used for charitable purposes.

17. Fixed and Current Asset Investments

Group

Group
Movement in listed investments
Market value at 1 December 2023
Additions to investments at cost
Disposals at carrying value
Net gain on revaluation
Movement in current asset investments
Market value as at 30 November 2024
Funds held as custodian
Reclassified to current asset investments
Market value as at 30 November 2024
Disclosed as;
Fixed asset investments
Current asset investments		 2024
2023
£
£
1,423,922
1,925,808
255,000
100,000
-
(568,172)
269,843
59,987
(69,201)
(93,701)

1,879,564
1,423,922
340,973
292,029
162,902
93,701
2,383,439
1,809,652


1,879,564
1,423,922
503,875
385,730
2,383,439
1,809,652

28

DIOCESE OF ARGYLL & THE ISLES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 NOVEMBER 2024

17. Fixed and Current Asset Investments (continued)

17.Fixed and Current Asset Investments (continued)
Charity
Movement in listed investments
Market value at 1 December 2023
Additions to investments at cost
Disposals at carrying value
Net gain on revaluation
Market value as at 30 November 2024
Funds held as custodian
Market value as at 30 November 2024
Disclosed as;
Fixed asset investments
Current asset investments		 2024
2023
£
£
1,179,151
1,274,044
205,000
100,000
-
(249,998)
209,576
55,105
1,593,727
1,179,151
340,973
292,029
1,934,700
1,471,180

1,593,727
1,179,151
340,973
292,029
1,934,700
1,471,180

All investments are carried at their fair value. Investment in equities and fixed interest securities are all traded in quoted public markets, primarily the London Stock Exchange. Holdings in common investment funds, unit trusts and open-ended investment companies are at the bid price. The basis of fair value for quoted investments is equivalent to the market value, using the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value). The significance of financial instruments to the ongoing financial sustainability of the Charity is considered in the financial review and investment policy and performance sections of the Trustees’ Annual Report.

The main risk to the charity from financial instruments lies in the combination of uncertain investment markets and volatility in yield. In terms of specific risks including foreign exchange and credit risks, the charity uses specialist investment managers to balance and limit the overall financial risk by operating a portfolio which provides a high degree of diversification of holdings within a fairly wide band of investment asset classes all of which are quoted on recognised stock exchanges. In addition, the charity does not make use of riskier derivatives or more complex financial instruments in this area. Liquidity risk is expected to be low as all assets are traded in markets with high trading volumes and not in any markets subject to exchange controls or trading restrictions.

The Diocese of Argyll & The Isles has a wholly owned subsidiary, Island Retreats Ltd which is incorporated in Scotland and whose principal activity is running retreat houses. The Standing Committee of the Diocese of Argyll & The Isles are the members of the company which is limited by guarantee.

29

DIOCESE OF ARGYLL & THE ISLES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 NOVEMBER 2024

18.Stock
Group
2024
2023
£
£
Goods for resale
684
665
684
665
19.Debtors
Group
2024
£
2023
£
Amounts due from charges
18,477
12,532
Other debtors
76,198
46,301
Due from group undertakings
-
-
94,675
58,833
20. Creditors: amounts falling due within one year
Group
2024
2023
£
£
Trade creditors
6,628
3,898
Other creditors and accruals
223,418
190,109
Taxation and social security costs
19,426
17,640
Funds held as custodian
366,434
313,448
Loans
14,406
14,481
Due to group undertakings
-
-
630,312
539,576
21. Deferred income
Balance as at 1 December 2023
Amount released to income from charitable activities
Amount deferred in year
Balance as at 30 November 2024		 Charity
2024
2023
£
£
-
-
-
-
Charity
2024
£
2023
£
18,477
12,532
63,098
40,450
-
19,646
81,575
72,628
Charity
2024
2023
£
£
-
-
18,906
27,889
1,463
662
366,434
313,448
4,406
4,481
5,354
-
396,563
346,480
Group
Charity
£
£
170,530
-
(147,515)
-
206,622
-
229,637

Deferred income comprises quotas received in advance, and deposits received by the retreat houses for future periods. Included within creditors falling due after more than one year is deferred income of £37,830 (2023 - £23,015).

22. Creditors: amounts falling due after more than one year

Group Charity
2024 2023 2024 2023
£ £ £ £
Deferred income (Note 21) 37,830 23,015 - -
Bounceback loan 8,340 18,988 - -
46,170 42,003 - -

30

DIOCESE OF ARGYLL & THE ISLES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 NOVEMBER 2024

23. Analysis of charitable funds – Group

Analysis of
Fund movements
Unrestricted funds
General fund
Total
unrestricted funds
Endowment funds
Argyll Bequest
Fund
Ivor Ramsey Fund
Total endowment
funds
Restricted fund
Episcopal Stipend
Fund
Bishop Low
Ministry Support
Fund
Mission and
Ministry
West Highland
Region Fund
Carsaig Cottage
Fund
Bishop’s
Discretionary
Fund
Zanzibar Fund
Argyll Bequest
Fund
Clergy Stipend
Dean’s Allowance
Islay Fund
Bishop’s House,
Iona
Cumbrae Land
Sale
Travel grant
Total restricted
funds
TOTAL FUNDS		 At 1
December
Income
Expenditure
Transfers
(Gains)/
Losses
At 30
November
2023
£
£
£
£
2024
£
£
934,734
951,861
727,640
10,984
82,422
1,252,361
934,734
951,861
727,640
10,984
82,422
1,252,361
282,864
-
-
47,408
330,272
244,770
-
-
41,067
285,837
527,634
-
-
88,475
616,109
287,613
26,147
17,721
-
52,746
348,785
299,047
1,889
-
(1,889)
10,016
309,063
12,332
24,600
13,015
-
-
23,917
171,186
-
-
-
27,155
198,341
4,542
-
1,250
-
-
3,292
71,302
1,703
-
-
9,029
82,034
689
-
-
-
-
689
-
8,940
-
(8,904)
-
-
17,451
72,106
36,847
-
-
52,710
155
3,600
3,600
(115)
-
-
1,560
-
-
-
-
1,560
30,000
-
-
-
-
30,000
41,900
-
-
-
-
41,900
-
5,000
5,000
-
-
-
937,777
143,985
77,433
(10,984)
98,946
1,092,291
2,400,145
1,095,846
805,074
-
269,843
2,960,761

31

DIOCESE OF ARGYLL & THE ISLES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 NOVEMBER 2024

23. Analysis of charitable funds – Group (continued)

Analysis of
Fund movements
Unrestricted funds
General fund
Total unrestricted
funds
Endowment funds
Argyll Bequest
Fund
Ivor Ramsey Fund
Total endowment
funds
Restricted fund
Episcopal Stipend
Fund
Bishop Low
Ministry Support
Fund
Mission and
Ministry
West Highland
Region Fund
Carsaig Cottage
Fund
Bishop’s
Discretionary Fund
Zanzibar Fund
Argyll Bequest
Fund
Clergy Stipend
Dean’s Allowance
Islay Fund
Bishop’s House,
Iona
Cumbrae Land
Sale
Total restricted
funds
TOTAL FUNDS		 At 1
December
Income
Expenditure
Transfers
(Gains)/
Losses
At 30
November
2022
£
£
£
£
2023
£
£
950,593
633,493
650,351
(17,388)
18,387
934,734
950,593
633,493
650,351
(17,388)
18,387
934,734
271,266
-
-
-
11,598
282,864
234,711
-
-
-
10,059
244,770
505,977
-
-
-
21,657
527,634
274,712
23,464
50,872
27,408
12,901
287,613
296,597
1,748
-
(1,748)
2,450
299,047
12,332
32,217
32,217
-
-
12,332
164,545
-
-
-
6,641
171,186
4,542
-
-
-
-
4,542
73,749
1,575
6,230
-
2,208
71,302
169
1,634
1,114
-
-
689
-
8,272
-
(8,272)
-
-
-
89,300
71,849
-
-
17,451
-
3,140
2,985
-
155
1,560
-
-
-
-
1,560
-
30,000
-
-
-
30,000
41,900
-
-
-
-
41,900
870,106
191,350
165,267
17,388
24,200
937,777
2,326,676
824,843
815,618
-
64,244
2,400,145

32

DIOCESE OF ARGYLL & THE ISLES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 NOVEMBER 2024

23. Analysis of charitable funds – Group (continued)

The Argyll Bequest Fund represents investments held in which any income generated from this can be used to fund Mission and Ministry expenditure.

The Ivor Ramsey Fund represents the transfer of assets from the Ivor Ramsey Trust on the dissolution of the Trust in 2013/14. The income generated from the monies held in the Ivor Ramsey Grant Endowment Fund is restricted. These monies are for expenditure which will maintain or enhance the operation, mainly in the respect of maintenance, repairs and insurance premiums.

c) Restricted funds comprise:

The Episcopal Stipend fund is to be used, solely, to provide a contribution to the Bishop's Stipend. The Bishop's Stipend is allocated in full to this fund with any short fall being funded, from either the Bishop Low fund or general funds by way of transfer from these funds.

The Bishop Low Ministry Support fund is to support the mission and ministry work of the Diocese. Donations received, during the year, to support mission and ministry work have been included in this fund.

Mission and Ministry: This fund exists for education and mission within the Diocese. Grants are received from the Province and are paid to facilitators and educators during the year for continued education and mission. The Diocese supports this work directly with a transfer of monies from the main fund and from The Argyll Bequest Fund Income.

The West Highland Region fund is made up of a number of bequests and allocations from diocesan funds for the purpose of providing a priest for the West Highland Region (WHR).

Carsaig Cottage Fund: The Carsaig Cottage Fund receives a small grant from the province annually. This money can then be used to assist clergy in the Diocese with costs of holidays.

The Bishop's Discretionary Fund -Small awards are given from this fund at the discretion of the bishop in order to assist those in pastoral need and with short term emergencies. Particularly in 2019 small awards were made to those wishing to take part in retreats.

The Zanzibar Fund - This Zanzibar fund was set up by to raise monies for the companion Diocese in Zanzibar.

33

DIOCESE OF ARGYLL & THE ISLES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 NOVEMBER 2024

23. Analysis of charitable funds – Group (continued)

Travel grants are received as part of the Provincial grant to assist with the funding of the travel costs of the Diocese. These funds are either paid out by way of grants to the Parishes or directly for the travel costs incurred by the Diocese.

Clergy Stipend - this fund is made up of grants received from the Province to fund the stipends of the priests of the Diocese.

Argyll Bequest Fund: This fund is now under the trusteeship of the Diocesan Trustees and is for the promotion of Ministry & Mission. All funds including the underlying investments are now held in the Diocesan Accounts. The endowment fund represents those assets which must be held permanently by the Diocese for the purpose of creating income for Mission & Ministry. Income arising from the endowment funds are treated as restricted funds. Although the conditions attached to the income of this fund are very broad there are still some restrictions.

The Dean's Allowance is paid by the Province, via the Diocese, to cover the Dean's costs. These funds are paid to the Dean's congregation to enable them to pay for cover when the Dean is absent on Diocese duties.

Islay Fund: Grants have been paid to the Diocese for the upkeep & extension of St Columba’s Church on Islay. The Diocese pays out the grant on receipt of invoices for building work completed.

Bishop’s House, Iona funds represent donations made to the Bishops House with no particular restrictions other than the assumption they assist in the funding of Bishops House. The friends of the house also raise money through the year and make donations for Capital Equipment and improvements sometimes at the specific request of the warden. All funds raised in the year were expanded in the year on general running and maintenance costs.

Cumbrae Land Sale, fund relates to the sale of land at The College and Cathedral of the Isles, Millport, the proceeds for which were restricted to being used for Mission and Ministry at the College and Cathedral.

Transfers between funds are made where unrestricted reserves are used to meet a shortfall in restricted income.

34

DIOCESE OF ARGYLL & THE ISLES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 NOVEMBER 2024

24. Group net assets over funds

At 30 November 2024
Fixed assets
Fixed asset Investments
Current asset investments
Stocks
Debtors
Cash at bank and in hand
Current liabilities
Long term liabilities
At 30 November 2024
Fixed assets
Fixed asset Investments
Current asset investments
Stocks
Debtors
Cash at bank and in hand
Current liabilities
Long term liabilities		 Unrestricted
Funds
£
808,911
325,232
503,875
684
94,675
195,466
(630,312)
(46,170)
1,252,361
Unrestricted
Funds
£
824,429
67,140
385,730
665
58,833
179,516
(539,576)
(42,003)
934,734		 Restricted
Funds
£
-
938,223
-
-
-
154,068
-
-
1,092,291
Restricted
Funds
£
-
829,148
-
-
-
108,629
-
-
937,777		 Endowment
Funds
£
-
616,109
-
-
-
-
-
-
616,109
Endowment
Funds
£
-
527,634
-
-
-
-
-
-
527,634		 Total
2024
£
808,911
1,879,564
503,875
684
94,675
349,534
(630,312)
(46,170)

2,960,761
Total
2023
£
824,429
1,423,922
385,730
665
58,833
288,145
(539,576)
(42,003)

2,400,145

35

DIOCESE OF ARGYLL & THE ISLES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 NOVEMBER 2024

25. Operating lease commitments

At the reporting end date, the group had outstanding commitment for future minimum lease payments under non=cancellable operating leases, which fall due as follows;

Less than 1 year
Between 2 and 5 years		 Group
2024
£
526
1,314
1,840		 Charity
2023
£
2024
£
2023
£
526
-
-
1,840
-
-
2,366
-
-

26. Reconciliation of net income/(expenditure) to net cash flow from operating activities

Net income/(expenditure) for the
year (as per the Statement of
Financial Activities)
Adjustments for:
Depreciation charges
Dividends, interest and rents from
investments
(Gains) on investments
(Gains) on investments held as
custodian
Interest Payable
Loss on disposal of fixed assets
(Increase)/Decrease in stocks
(Increase)/decrease in debtors
Increase/(Decrease) in creditors
Net cash provided by/(used in)
operating activities		 Group
2024
2023
£
£
560,616
73,469
24,712
20,099
(55,177)
(53,674)
(269,843)
(64,244)
(48,944)
(11,973)
1,250
927
62,539
-
(19)
575
(35,842)
(33,656)
105,626
(57,043)
344,918
(125,520)		 Charity
2024
2023
£
£
470,195
(4,599)
14,377
9,362
(53,309)
(50,720)
(209,576)
(55,108)
(48,944)
(11,973)
-
-
64,128
-
-
-
(8,947)
179,496
50,158
22,953
278,082
89,411		 Charity
2024
2023
£
£
470,195
(4,599)
14,377
9,362
(53,309)
(50,720)
(209,576)
(55,108)
(48,944)
(11,973)
-
-
64,128
-
-
-
(8,947)
179,496
50,158
22,953
278,082
89,411
89,411

27. Analysis of cash and cash equivalents

Cash at bank and in hand
Total cash and cash equivalents		 Group
2024
2023
£
£
349,534
288,145
349,534
288,145		 Charity
2024
2023
£
£
211,552
149,364
211,552
149,364

36

DIOCESE OF ARGYLL & THE ISLES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 NOVEMBER 2024

28. Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The trustees are satisfied that the accounting policies are appropriate and applied consistently. Key sources of estimation have been applied as follows:

Lease Classification – Determination of whether leases entered into by the charity either as a lessor or a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have transferred.

Impairment – Where there are indicators of impairment of the charity’s intangible assets and investments. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.

Depreciation of fixed assets – fixed assets are depreciated over the useful life of the asset. The useful lives of fixed assets are based on the knowledge of senior management, with reference to assets expected life cycle.

Allocation of expenditure between activities – Support costs are allocated between charitable activities and governance based on the time spent by senior management on undertaking the charity’s activities.

37