**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: 

- Assessing the risks faced by the Diocese; 

- Establishing systems and procedures to mitigate those risks identified; and 

- Implementing procedures to minimize any possible impact should those risks materialise. 

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: 

- Major pandemic; 

- Loss of key personnel, especially the Bishop; 

- Reductions in income streams, especially those from the Province and IRL; 

- The impact of financial failure of a large congregation; and 

- Reputational risk arising from e.g., allegations of improper behaviour by a member of the church. 

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 provision of spiritual, clerical and financial support to the Charges throughout the Diocese, the administration of Provincial grants, mission work and both ministerial and congregational development; and 

- Support for the Bishop as Chief Pastor of all within the Diocese (Canon 6). 

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: 

- Quota paid by congregations. 

- A Block Grant paid by the province to support mission and ministry. 

- Income from investments. 

- Operational surpluses generated by IRL. 

## **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. 

- a) to support our Bishop; 

- b) with the Bishop, to develop further a more sustainable model for ministry across the Diocese, to remove the requirement for open-ended stipend support from the Province through the Block Grant; and 

- c) to contain costs to minimise the level of Quota contributions required from Charges. 

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: 

- select suitable accounting policies and then apply them consistently. 

- observe the methods and principles in the Charities SORP. 

- make judgments and estimates that are reasonable and prudent. 

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements: 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity and the group will continue in operation. 

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: 

- so far as that Trustee is aware, there is no relevant audit information of which the charitable company's auditors are unaware, and 

- that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information. 

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: 

- give a true and fair view of the state of the group’s and the parent charity’s affairs as at 30 November 2024, and of the group’s and the parent charity’s incoming resources and application of resources, including its income and expenditure, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; 

- have been prepared in accordance with the requirements of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 6 and 8 of the Charities Accounts (Scotland) Regulations 2006. 

## **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: 

- the information given in the financial statements is inconsistent in any material respect with the Report of the Trustees; or 

- proper accounting records have not been kept; or 

- the parent charity’s financial statements are not in agreement with the accounting records; or 

- we have not received all the information and explanations we require for out audit 

## **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; 

- The nature of the charity, the environment in which it operates, and the control procedures implemented by management and the trustees; and 

- Our enquiries of management and trustees about their identification and assessment of the risks of irregularities. 

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; 

- Regulations and legislation pertinent to the charity’s operations 

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; 

- Posting inappropriate journal entries. 

## **Audit response to the risks identified;** 

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

- Gaining an understanding of the legal and regulatory framework applicable to the charity and the sector in which it operates; 

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; 

- Enquiring of management, trustees and legal advisors concerning actual and potential litigation and claims; 

- Reading minutes of meetings of those charged with governance. 

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 

- Prepayments; 

- Other debtors & accrued income; 

- Accruals; 

- Other creditors; 

- PAYE & NIC; 

- Wages & salaries; and 

- Depreciation. 

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:**<br>Donations and legacies<br>Charitable activities<br>Other trading activities<br>Investments<br>Other incoming resources<br>**Total Income**<br>**Expenditure on:**<br>Raising funds<br>Other trading activities<br>Charitable activities<br>**Total Expenditure**<br>**Net income / (expenditure) before**<br>**gains and losses on investments**<br>Net gains on investments<br>**Net income**<br>Transfers between funds<br>**Net movement in funds**<br>**Funds reconciliation**<br>Total Funds brought forward<br>**Total Funds carried forward**<br>**Note**<br>4<br>5<br>6<br>7<br>8<br>9<br>11<br>17<br>23<br>23||**Unrestricted**<br>**Funds**<br>**Restricted**<br>**Funds**<br>**Endowment**<br>**Funds**<br>**Total**<br>**Funds**<br>**_Unrestricted_**<br>**_Funds_**<br>**_Restricted_**<br>**_Funds_**<br>**_Endowment_**<br>**_Funds_**<br>**2024**<br>**2024**<br>**2024**<br>**2024**<br>**_2023_**<br>**_2023_**<br>**_2023_**<br>**£**<br>**£**<br>**£**<br>**£**<br>**_£_**<br>**_£_**<br>**_£_**<br>476,631<br>121,506<br>-<br>**598,137**<br>_188,261_<br>_157,256_<br>_-_<br>436,584<br>-<br>-<br>**436,584**<br>_420,135_<br>_-_<br>_-_<br>1,559<br>-<br>-<br>**1,559**<br>_3,217_<br>_-_<br>_-_<br>32,698<br>22,479<br>-<br>**55,177**<br>_19,580_<br>_34,094_<br>_-_<br>4,389<br>-<br>-<br>**4,389**<br>_2,300_<br>_-_<br>_-_|**_Total_**<br>**_Funds_**<br>**_2023_**<br>**_£_**<br>**_345,517_**<br>**_420,135_**<br>**_3,217_**<br>**_53,674_**<br>**_2,300_**|
|---|---|---|---|
|||951,861<br>143,985<br>-<br>**1,095,846**<br>_633,493_<br>_191,350_<br>_-_<br>2,962<br>-<br>-<br>**2,962**<br>_1,647_<br>_-_<br>_-_<br>724,678<br>77,433<br>-<br>**802,111**<br>_648,704_<br>_165,267_<br>_-_|**_824,843_**<br>**_1,647_**<br>**_813,971_**|
|||||
|||727,640<br>77,433<br>-<br>**805,073**<br>_650,351_<br>_165,267_<br>_-_|**_815,618_**|
|||224,221<br>66,552<br>-<br>**290,773**<br>_(16,858)_<br>_26,083_<br>_-_<br>82,422<br>98,946<br>88,475<br>**269,843**<br>_18,387_<br>_24,200_<br>_21,657_|**_9,225_**<br>**_64,244_**|
|||306,643<br>165,498<br>88,475<br>**560,616**<br>_1,529_<br>_50,283_<br>_21,657_<br>10,984<br>(10,984)<br>-<br>**-**<br>_(17,388)_<br>_17,388_<br>_-_|**_73,469_**|
|||317,627<br>154,514<br>88,475<br>**560,616**<br>_(15,859)_<br>_67,671_<br>_21,657_<br>**934,734**<br>**937,777**<br>**527,634**<br>**2,400,145**<br>**_950,593_**<br>**_870,106_**<br>**_505,977_**|**_73,469_**<br>**_2,326,676_**|
|||**1,252,361**<br>**1,092,291**<br>**616,109**<br>**2,960,761**<br>**_934,734_**<br>**_937,777_**<br>**_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**<br>**Income and endowments from:**<br>Donations and legacies<br>4<br>Charitable activities<br>5<br>Investments<br>7<br>**Total Income**<br>**Expenditure on:**<br>Charitable activities<br>**Total Expenditure**<br>**Net income / (expenditure) before**<br>**gains and losses on investments**<br>Net gains on investments<br>17<br>**Net income / (expenditure)**<br>Transfers between funds<br>**Net movement in funds**<br>**Funds reconciliation**<br>Total Funds brought forward<br>**Total Funds carried forward**|**Unrestricted**<br>**Funds**<br>**Restricted**<br>**Funds**<br>**Endowment**<br>**Funds**<br>**2024**<br>**2024**<br>**2024**<br>**£**<br>**£**<br>**£**<br>468,073<br>121,506<br>-<br>110,311<br>-<br>-<br>30,830<br>22,479<br>-|**Total**<br>**Funds**<br>**Unrestricted**<br>**Funds**<br>**Restricted**<br>**Funds**<br>**Endowment**<br>**Funds**<br>**Total**<br>**Funds**<br>**2024**<br>**2023**<br>**2023**<br>**2023**<br>**2023**<br>**£**<br>**_£_**<br>**£**<br>**£**<br>**£**<br>**589,579**<br>169,915<br>127,256<br>-<br>**297,171**<br>**110,311**<br>69,800<br>-<br>-<br>**69,800**<br>**53,309**<br>16,626<br>34,094<br>-<br>**50,720**|
|---|---|---|
||609,214<br>143,985<br>-|**753,199**<br>256,341<br>161,350<br>-<br>**417,691**|
||415,147<br>77,433<br>-|**492,580**<br>312,131<br>165,267<br>-<br>**477,398**|
||415,147<br>77,433<br>-|**492,580**<br>312,131<br>165,267<br>-<br>**477,398**|
||194,067<br>66,552<br>-<br>63,222<br>98,946<br>47,408|**260,619**<br>(55,790)<br>(3,917)<br>-<br>**(59,707)**<br>**209,576**<br>19,310<br>24,200<br>11,598<br>**55,108**|
||257,289<br>165,498<br>47,408<br>10,984<br>(10,984)<br>-|**470,195**<br>(36,480)<br>20,283<br>11,598<br>**(4,599)**<br>**-**<br>(17,388)<br>17,388<br>-<br>**-**|
||268,273<br>154,514<br>47,408|**470,195**<br>(53,868)<br>37,671<br>11,598<br>**(4,599)**|
||**769,738**<br>**907,777**<br>**282,864**|**1,960,379**<br>**823,606**<br>**870,106**<br>**271,266**<br>**1,964,978**|
||**1,038,011**<br>**1,062,291**<br>**330,272**|**2,430,574**<br>**769,738**<br>**907,777**<br>**282,864**<br>**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**<br>**_Fixed assets_: **<br>Tangible assets<br>15 & 16<br>Investments<br>17<br>**Total fixed assets**<br>**_Current assets:_**<br>Investments<br>17<br>Stocks<br>18<br>Debtors<br>19<br>Cash at bank and in hand<br>27<br>**Total current assets**<br>**_Liabilities_: **<br>Creditors falling due within<br>one year<br>20<br>**Net current assets**<br>**Total assets less current**<br>**liabilities**<br>Creditors: Amounts falling<br>22<br>due after more than one<br>year<br>**Net assets**<br>**_The funds of the charity:_**<br>Unrestricted Funds<br>23<br>Restricted Funds<br>23<br>Endowment Funds<br>23<br>**Total charity funds**||**Group**<br>**2024**<br>**£**<br>808,911<br>1,879,564<br>2,688,475<br>503,875<br>684<br>94,675<br>349,534<br>948,678<br> (630,312)<br>318,456<br>3,006,931<br>(46,170)<br>2,960,761<br>1,252,361<br>1,092,291<br>616,109<br>2,960,761||**Group**<br>**2023**<br>**£**<br>824,429<br>1,423,922<br>2,248,351<br>385,730<br>665<br>58,833<br>288,145<br>733,373<br>(539,576)<br>193,797<br>2,442,148<br>(42,003)<br>2,400,145<br>934,734<br>937,777<br>527,634<br>2,400,145|**Charity**<br>**2024**<br>**£**<br>599,310<br>1,593,727<br>2,193,037<br>340,973<br>-<br>81,575<br>211,552<br>634,100<br>(396,563)<br>237,537<br>2,430,574<br>-<br>2,430,574<br>1,038,011<br>1,062,291<br>330,272<br>2,430,574||**Charity**<br>**2023**<br>**£**<br>613,687<br>1,179,151<br>1,792,838<br>292,029<br>-<br>72,628<br>149,364|
|---|---|---|---|---|---|---|---|
||||||||514,021<br>(346,480)<br>167,541|
||||||||1,960,379<br>-|
||||||||1,960,379<br>769,738<br>907,777<br>282,864<br>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**<br>**_Cash flows from operating_**<br>**_activities_: **<br>**Net cash provided by / (used**<br>25<br>**in) by activities**<br>**_Cash flows from investing_**<br>**_activities_: **<br>Dividends, interest and rents<br>from investments<br>Purchase of investments<br>Proceeds from the disposal of<br>investments<br>Interest paid<br>Proceeds from disposal of fixed<br>assets<br>Purchase of fixed assets<br>**Net cash (used in) / provided**<br>**by investing activities**<br>**_Cash flows from financing_**<br>**_activities:_**<br>Repayment of loans<br>**Net cash (used in) investing**<br>**activities**<br>**Change in cash and cash**<br>**equivalents in the year**<br>Cash and cash equivalents<br>27<br>brought forward<br>**Cash and cash equivalents**<br>27<br>**carried forward**|**Group**<br>**2024**<br>**£**<br>344,918<br>55,177<br>(255,000)<br>-<br>(1,250)<br>134,872<br>(206,605)<br>(272,806)<br>(10,723)<br>(10,723)<br>61,389<br>288,145<br>349,534|**Group**<br>**2023**<br>**£**<br>(125,520)<br>53,674<br>(100,000)<br>572,429<br>(927)<br>-<br>(252,246)<br>272,930<br>(14,988)<br>(14,988)<br>132,422<br>155,723<br>288,145||**Charity**<br>**2024**<br>**£**<br>278,082<br>53,309<br>(205,000)<br>-<br>-<br>130,872<br>(75)<br>(75)<br>62,188<br>149,364<br>211,552<br> (195,000)<br>(215,819)|**Charity**<br>**2023**<br>**£**<br>89,411|
|---|---|---|---|---|---|
||||||50,720<br>(100,000)<br>250,001<br>-<br>-<br> (252,233)|
||||||(5,261)<br> <br>(51,512)|
||||||(5,261)<br>32,638<br>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. 

- Costs of raising funds comprise the costs of commercial trading including investment management costs and certain legal fees and their associated support costs; 

- Expenditure on charitable activities includes costs incurred by the charity in the delivery of its activities, services for its beneficiaries and other activities undertaken to further the purposes of the charity and their associated support costs; 

- Grants payable are payments made to third parties in the furtherance of the charitable objects of the charity. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the one-year or multi-year grant. Grants awards that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled condition attaching to that grant is outside of the control of the charity. 

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: 

|<br>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: 

- a possible obligation which will only be confirmed by the occurrence of one or more uncertain future events not wholly within the trustees’ control; or 

- a present obligation following a grant offer where settlement is either not considered probable; or 

- the amount has not been communicated in the grant offer and that amount cannot be estimated reliably. 

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



## **5. Income from charitable activities** 

|Accommodation|**Group**<br>**2024**<br>**2023**<br>**£**<br>**£**<br>436,584<br>420,135<br>436,584<br>420,135|**Charity**<br>**2024**<br>**2023**<br>**£**<br>**£**<br>110,311<br>69,800<br>110,311<br>69,800|**Charity**<br>**2024**<br>**2023**<br>**£**<br>**£**<br>110,311<br>69,800<br>110,311<br>69,800|
|---|---|---|---|
||||<br>69,800|



## **6. Income from other trading activities** 

|Goods for resale|**Group**<br>**2024**<br>**£**<br>**2023**<br>**£**<br>1,559<br>3,217<br>1,559<br>3,217|**Charity**<br>**2024**<br>**£**<br>**2023**<br>**£**<br>- <br>-<br>- <br>-|
|---|---|---|



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



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

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



22 



**DIOCESE OF ARGYLL & THE ISLES** 

## **NOTES TO THE ACCOUNTS** 

## **FOR THE YEAR ENDED 30 NOVEMBER 2024** 

## **7. Investment income** 

|Dividends – equities<br>Bank interest<br>Loan interest<br>Rent<br>Salary recharge<br>**8.**<br>**Other income**<br>Miscellaneous income<br>Gains on disposal of tangible fixed<br>assets|**Group**<br>**2024**<br>**2023**<br>**£**<br>50,542<br>**£**<br>53,594<br>137<br>80<br>1,298<br>-<br>3,200<br>-<br>- <br>- <br>55,177<br>53,674<br>**Group**<br>**2024**<br>**2023**<br>**£**<br>**£**<br>2,800<br>2,300<br>1,589<br>-<br> <br>4,389<br>2,300|**Charity**<br>**2024**<br>**2023**<br>**£**<br>38,674<br>**£**<br>34,094<br>137<br>80<br>1,298<br>6,546<br>8,200<br>5,000<br>5,000<br>5,000<br>53,309<br>50,720<br>**Charity**<br>**2024**<br>**2023**<br>**£**<br>**£**<br>-<br>-<br>-<br>-<br>  <br>- <br>-|**Charity**<br>**2024**<br>**2023**<br>**£**<br>38,674<br>**£**<br>34,094<br>137<br>80<br>1,298<br>6,546<br>8,200<br>5,000<br>5,000<br>5,000<br>53,309<br>50,720<br>**Charity**<br>**2024**<br>**2023**<br>**£**<br>**£**<br>-<br>-<br>-<br>-<br>  <br>- <br>-|
|---|---|---|---|
||||-|



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

|Goods for resale<br>Goods for resale|**Direct**<br>**Support**<br>**Total**<br>**Costs**<br>**£**<br>**Costs**<br>**£**<br>**2024**<br>**£**<br>2,962<br>-<br>2,962|
|---|---|
||2,962<br>-<br>2,962|
||**Direct**<br>**Support**<br>**Total**<br>**Costs**<br>**Costs**<br>**2023**<br>**£**<br>**£**<br>**£**<br>1,647<br>-<br>1,647|
||1,647<br>-<br>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:**<br>Accountancy fees<br>Legal fees<br>Auditor’s remuneration<br>Synod committee costs<br>**Allocation of governance costs:**<br>Provision of religious support and administration<br>Accommodation<br>**Total allocated**||**2024**<br>**£**<br>**2023**<br>**£**<br>14,013<br>14,444<br>1,688<br>15,662<br>15,765<br>14,700<br>3,624<br>5,305|
|||<br><br>35,090<br>50,111|
|||**2024**<br>**£**<br>**2023**<br>**£**<br> 19,152<br>20,579<br>15,938<br>29,532|
|||35,090<br>50,111|



## **11. Analysis of expenditure on charitable activities - Group** 

|Grants paid out<br>Clergy costs<br>Property costs<br>Loss on disposal<br>Clergy office costs<br>Provincial Quota<br>Management costs<br>Training and Education<br>Loan interest<br>Staff costs<br>Office costs<br>Travel costs<br>Food purchases<br>Depreciation<br>Repairs/ maintenance<br>Other costs<br>Governance costs<br>(note 10)|**Provision of**<br>**religious**<br>**support and**<br>**Total**<br>**administration Accommodation**<br>**2024**<br>**£**<br>**£**<br>**£**<br>70,089<br>-<br>70,089<br>54,981<br>-<br>54,981<br>142,328<br>51,991<br>194,319<br>64,128<br>-<br>64,128<br>28,800<br>-<br>28,800<br>25,097<br>-<br>25,097<br>52,165<br>-<br>52,165<br>1,463<br>-<br>1,463<br>-<br>1,250<br>1,250<br>-<br>157,926<br>157,926<br>-<br>8,454<br>8,454<br>-<br>1,891<br>1,891<br>-<br>45,351<br>45,351<br>14,377<br>10,335<br>24,712<br>-<br>28,781<br>28,781<br>-<br>7,614<br>7,614<br>19,152<br>15,938<br>35,090|
|---|---|
||472,580<br>329,531<br>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<br>Clergy costs<br>Property costs<br>Clergy office costs<br>Provincial Quota<br>Management costs<br>Training and education<br>Loan interest<br>Staff costs<br>Office costs<br>Travel costs<br>Food purchases<br>Depreciation<br>Repairs/maintenance<br>Other costs<br>Governance costs<br>(note 10)|**Provision of**<br>**religious**<br>**support and**<br>**Total**<br>**administration Accommodation**<br>**2023**<br>**£**<br>108,901<br>**£**<br>-<br>**£**<br>108,901<br>71,737<br>-<br>71,737<br>142,713<br>48,940<br>191,653<br>2,994<br>-<br>2,994<br>24,515<br>-<br>24,515<br>75,935<br>-<br>75,935<br>15,662<br>-<br>15,662<br>-<br>922<br>922<br>-<br>139,642<br>139,642<br>-<br>9,007<br>9,007<br>-<br>2,147<br>2,147<br>-<br>52,909<br>52,909<br>-<br>20,099<br>20,099<br>-<br>39,177<br>39,177<br>-<br>8,560<br>8,560<br>20,579<br>29,532<br>50,111|
|---|---|
||463,036<br>350,935<br>813,971|



## **12. Analysis of grants** 

|**2.Analysis of g**|**rants**|
|---|---|
|Stipend<br>Support<br>Travel grant<br>Ministry grant<br>Arran grant<br>Dean’s Travel<br>expenses &<br>Allowance<br>Duror grant<br>Small grants<br>**Total**|**Grants to**<br>**institutions**<br>**£**<br>**Grants to**<br>**individuals**<br>**£**<br>**2024**<br>**Total**<br>**£**<br>**Grants to**<br>**institutions**<br>**£**<br>**Grants to**<br>**individuals**<br>**£**<br>**2023**<br>**Total**<br>**£**<br>48,047<br>-<br>48,047<br>94,396<br>-<br>94,396<br>5,000<br>-<br>5,000<br>-<br>-<br>-<br>8,000<br>-<br>8,000<br>-<br>7,500<br>7,500<br>3,600<br>2,317<br>5,917<br>-<br>-<br>-<br>2,985<br>-<br>2,985<br>1,875<br>-<br>1,875<br>2,500<br>-<br>2,500<br>-<br>1,250<br>1,250<br>-<br>1,520<br>1,520|
||66,522<br>3,567<br>70,089<br>96,896<br>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):**<br>St Peter’s, Stornoway<br>Christ Church, Lochgilphead<br>The College of the Holy Spirit, Cumbrae<br>WHR<br>St Johns Cathedral Oban<br>St Adamnan, Duror<br>St Margaret, Arran<br>Curate<br>Fort William<br>Dunoon<br>Portree<br>Campbeltown<br>**Total**|**2024**<br>**Total**<br>**£**<br>**2023**<br>**Total**<br>**£**<br>3,690<br>12,832<br>22,740<br>18,125<br>-<br>8,500<br>16,667<br>15,783<br>13,800<br>-<br>1,875<br>2,500<br>400<br>300<br>-<br>33,906<br>1,000<br>-<br>4,250<br>2,950<br>1,700<br>1,700<br>400<br>300|
|---|---|
||66,522<br>96,896|



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

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



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

|The average number of persons, by headcount, employed by<br>the group during the year was:|**2024**<br>**No.**<br>**2023**<br>**No.**<br>9<br>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:<br>Depreciation<br>Auditor’s remuneration:<br>Audit fees charity<br>Audit fees subsidiary|**Group**<br>**2024**<br>**2023**<br>**£**<br>24,712<br>**£**<br>20,099<br>8,820<br>8,400<br>6,945<br>6,300|**Charity**<br>**2024**<br>**2023**<br>**£**<br>14,377<br>**£**<br>9,362<br>8,820<br>8,400<br>-<br>-|
|---|---|---|



## **15. Tangible Fixed Assets - Group** 

|**Cost or valuation**<br>At 1 December 2023<br>Additions<br>Disposals<br>At 30 November 2024<br>**Depreciation**<br>At 1 December 2023<br>Charge for the year<br>On disposals<br>At 30 November 2024<br>**Net book value**<br>At 30 November 2024<br>At 30 November 2023|**Plant**<br>**Land &**<br>**&**<br>**Buildings**<br>**Machinery**<br>**£**<br>**£**<br>1,189,509<br>202,085<br>-<br>206,605<br>-<br>(202,167)|**Motor**<br>**Vehicles**<br>**Total**<br>**£**<br>**£**<br>5,000<br>1,396,594<br>-<br>206,605<br>-<br>(202,167)|
|---|---|---|
||1,189,509<br>206,523|5,000<br>1,401,032|
||387,698<br>179,880<br>20,188<br>4,400<br>-<br>(4,756)|4,587<br>572,165<br>124<br>24,712<br>-<br>(4,756)|
||407,886<br>179,524|4,711<br>592,121|
||781,623<br>26,999|289<br>808,911|
||801,811<br>22,205|413<br>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**<br>At 1 December 2023<br>Additions<br>Disposals<br>At 30 November 2024<br>**Depreciation**<br>At 1 December 2023<br>Charge for the year<br>At 30 November 2024<br>**Net book value**<br>At 30 November 2024<br>At 30 November 2023|**Plant**<br>**Land &**<br>**&**<br>**Buildings**<br>**£**<br>**Machinery**<br>**£**<br>**Total**<br>**£**<br>710,323<br>14,699<br>725,022<br>195,000<br>-<br>195,000<br>(195,000)<br>-<br>(195,000)|
||710,323<br>14,699<br>725,022|
||97,772<br>13,563<br>111,335<br>14,207<br>170<br>14,377|
||111,979<br>13,733<br>125,712|
||598,344<br>966<br>599,310|
||612,551<br>1,136<br>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<br>Market value at 1 December 2023<br>Additions to investments at cost<br>Disposals at carrying value<br>Net gain on revaluation<br>Movement in current asset investments<br>Market value as at 30 November 2024<br>Funds held as custodian<br>Reclassified to current asset investments<br>Market value as at 30 November 2024<br>Disclosed as;<br>Fixed asset investments<br>Current asset investments|**2024**<br>**2023**<br>**£**<br>**£**<br>1,423,922<br>1,925,808<br>255,000<br>100,000<br>-<br>(568,172)<br>269,843<br>59,987<br>(69,201)<br>(93,701)|
||<br>1,879,564<br>1,423,922|
||340,973<br>292,029<br>162,902<br> 93,701|
||2,383,439<br>1,809,652|
||<br> <br>1,879,564<br>1,423,922<br>503,875<br>385,730|
||2,383,439<br>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**<br>Movement in listed investments<br>Market value at 1 December 2023<br>Additions to investments at cost<br>Disposals at carrying value<br>Net gain on revaluation<br>Market value as at 30 November 2024<br>Funds held as custodian<br>Market value as at 30 November 2024<br>Disclosed as;<br>Fixed asset investments<br>Current asset investments|**2024**<br>**2023**<br>**£**<br>**£**<br>1,179,151<br>1,274,044<br>205,000<br>100,000<br>-<br>(249,998)<br> 209,576<br> 55,105<br> 1,593,727<br>1,179,151<br> 340,973<br> 292,029|
||1,934,700<br>1,471,180|
||<br>1,593,727<br>1,179,151<br>340,973<br>292,029|
||1,934,700<br>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**<br>**Group**<br>**2024**<br>**2023**<br>**£**<br>**£**<br>Goods for resale<br>684<br>665<br>684<br>665<br>**19.Debtors**<br>**Group**<br>**2024**<br>**£**<br>**2023**<br>**£**<br>Amounts due from charges<br>18,477<br>12,532<br>Other debtors<br>76,198<br>46,301<br>Due from group undertakings<br>-<br>-<br>94,675<br>58,833<br>**20. Creditors: amounts falling due within one year**<br>**Group**<br>**2024**<br>**2023**<br>**£**<br>**£**<br>Trade creditors<br>6,628<br>3,898<br>Other creditors and accruals<br>223,418<br>190,109<br>Taxation and social security costs<br>19,426<br>17,640<br>Funds held as custodian<br>366,434<br>313,448<br>Loans<br>14,406<br>14,481<br>Due to group undertakings<br>-<br>-<br>630,312<br>539,576<br>**21. Deferred income**<br>Balance as at 1 December 2023<br>Amount released to income from charitable activities<br>Amount deferred in year<br>Balance as at 30 November 2024|**Charity**<br>**2024**<br>**2023**<br>**£**<br>**£**<br>- <br>- <br>-<br>-<br>**Charity**<br>**2024**<br>**£**<br>**2023**<br>**£**<br>18,477<br>12,532<br>63,098<br>40,450<br>- <br>19,646<br>81,575<br>72,628<br>**Charity**<br>**2024**<br>**2023**<br>**£**<br>**£**<br>-<br>-<br>18,906<br>27,889<br>1,463<br>662<br>366,434<br>313,448<br>4,406<br>4,481<br>5,354<br>- <br>396,563<br>346,480<br>**Group**<br>**Charity**<br>**£**<br>**£**<br>170,530<br>-<br>(147,515)<br>-<br>206,622<br>-<br>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**<br>**Fund movements**<br>**Unrestricted funds**<br>General fund<br>**Total**<br>**unrestricted funds**<br>**Endowment funds**<br>Argyll Bequest<br>Fund<br>Ivor Ramsey Fund<br>**Total endowment**<br>**funds**<br>**Restricted fund**<br>Episcopal Stipend<br>Fund<br>Bishop Low<br>Ministry Support<br>Fund<br>Mission and<br>Ministry<br>West Highland<br>Region Fund<br>Carsaig Cottage<br>Fund<br>Bishop’s<br>Discretionary<br>Fund<br>Zanzibar Fund<br>Argyll Bequest<br>Fund<br>Clergy Stipend<br>Dean’s Allowance<br>Islay Fund<br>Bishop’s House,<br>Iona<br>Cumbrae Land<br>Sale<br>Travel grant<br>**Total restricted**<br>**funds**<br>**TOTAL FUNDS**|**At 1**<br>**December**<br>**Income**<br>**Expenditure**<br>**Transfers**<br>**(Gains)/**<br>**Losses**<br>**At 30**<br>**November**<br>**2023**<br>**£**<br>**£**<br>**£**<br>**£**<br>**2024**<br>**£**<br>**£**<br>934,734<br>951,861<br>727,640<br>10,984<br>82,422<br>1,252,361|
|---|---|
||934,734<br>951,861<br>727,640<br>10,984<br>82,422<br>1,252,361<br>282,864<br>-<br>-<br>47,408<br>330,272<br>244,770<br>-<br>-<br>41,067<br>285,837|
||527,634<br>-<br>-<br>88,475<br>616,109<br>287,613<br>26,147<br>17,721<br>-<br>52,746<br>348,785<br>299,047<br>1,889<br>-<br>(1,889)<br>10,016<br>309,063<br>12,332<br>24,600<br>13,015<br>-<br>-<br>23,917<br>171,186<br>-<br>-<br>-<br>27,155<br>198,341<br>4,542<br>-<br>1,250<br>-<br>-<br>3,292<br>71,302<br>1,703<br>-<br>-<br>9,029<br>82,034<br>689<br>-<br>-<br>-<br>-<br>689<br>-<br>8,940<br>-<br>(8,904)<br>-<br>-<br>17,451<br>72,106<br>36,847<br>-<br>-<br>52,710<br>155<br>3,600<br>3,600<br>(115)<br>-<br>-<br>1,560<br>-<br>-<br>-<br>-<br>1,560<br>30,000<br>-<br>-<br>-<br>-<br>30,000<br>41,900<br>-<br>-<br>-<br>-<br>41,900<br>-<br>5,000<br>5,000<br>-<br>-<br>-|
||937,777<br>143,985<br>77,433<br>(10,984)<br>98,946<br>1,092,291|
||2,400,145<br>1,095,846<br>805,074<br>-<br>269,843<br>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**<br>**Fund movements**<br>**Unrestricted funds**<br>General fund<br>**Total unrestricted**<br>**funds**<br>**Endowment funds**<br>Argyll Bequest<br>Fund<br>Ivor Ramsey Fund<br>**Total endowment**<br>**funds**<br>**Restricted fund**<br>Episcopal Stipend<br>Fund<br>Bishop Low<br>Ministry Support<br>Fund<br>Mission and<br>Ministry<br>West Highland<br>Region Fund<br>Carsaig Cottage<br>Fund<br>Bishop’s<br>Discretionary Fund<br>Zanzibar Fund<br>Argyll Bequest<br>Fund<br>Clergy Stipend<br>Dean’s Allowance<br>Islay Fund<br>Bishop’s House,<br>Iona<br>Cumbrae Land<br>Sale<br>**Total restricted**<br>**funds**<br>**TOTAL FUNDS**|**At 1**<br>**December**<br>**Income**<br>**Expenditure**<br>**Transfers**<br>**(Gains)/**<br>**Losses**<br>**At 30**<br>**November**<br>**2022**<br>**£**<br>**£**<br>**£**<br>**£**<br>**2023**<br>**£**<br>**£**<br>950,593<br>633,493<br>650,351<br>(17,388)<br>18,387<br>934,734|
|---|---|
||950,593<br>633,493<br>650,351<br>(17,388)<br>18,387<br>934,734<br>271,266<br>-<br>-<br>-<br>11,598<br>282,864<br>234,711<br>-<br>-<br>-<br>10,059<br>244,770|
||505,977<br>-<br>-<br>-<br>21,657<br>527,634<br>274,712<br>23,464<br>50,872<br>27,408<br>12,901<br>287,613<br>296,597<br>1,748<br>-<br>(1,748)<br>2,450<br>299,047<br>12,332<br>32,217<br>32,217<br>-<br>-<br>12,332<br>164,545<br>-<br>-<br>-<br>6,641<br>171,186<br>4,542<br>-<br>-<br>-<br>-<br>4,542<br>73,749<br>1,575<br>6,230<br>-<br>2,208<br>71,302<br>169<br>1,634<br>1,114<br>-<br>-<br>689<br>-<br>8,272<br>-<br>(8,272)<br>-<br>-<br>-<br>89,300<br>71,849<br>-<br>-<br>17,451<br>-<br>3,140<br>2,985<br>-<br>155<br>1,560<br>-<br>-<br>-<br>-<br>1,560<br>-<br>30,000<br>-<br>-<br>-<br>30,000<br>41,900<br>-<br>-<br>-<br>-<br>41,900|
||870,106<br>191,350<br>165,267<br>17,388<br>24,200<br>937,777|
||2,326,676<br>824,843<br>815,618<br>-<br>64,244<br>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)** 

- a) The unrestricted funds are available to be spent for any of the purposes of the charity. 

- b) Endowment funds comprise: 

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. 

- d) Transfers: 

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**<br>Fixed assets<br>Fixed asset Investments<br>Current asset investments<br>Stocks<br>Debtors<br>Cash at bank and in hand<br>Current liabilities<br>Long term liabilities<br>**At 30 November 2024**<br>Fixed assets<br>Fixed asset Investments<br>Current asset investments<br>Stocks<br>Debtors<br>Cash at bank and in hand<br>Current liabilities<br>Long term liabilities||**Unrestricted**<br>**Funds**<br>**£**<br>808,911<br>325,232<br>503,875<br>684<br>94,675<br>195,466<br>(630,312)<br>(46,170)<br>1,252,361<br>**Unrestricted**<br>**Funds**<br>**£**<br>824,429<br>67,140<br>385,730<br>665<br>58,833<br>179,516<br>(539,576)<br>(42,003)<br>934,734||**Restricted**<br>**Funds**<br>**£**<br>-<br>938,223<br>-<br>-<br>-<br>154,068<br>-<br>-<br>1,092,291<br>**Restricted**<br>**Funds**<br>**£**<br>-<br>829,148<br>-<br>-<br>-<br>108,629<br>-<br>-<br>937,777||**Endowment**<br>**Funds**<br>**£**<br>-<br>616,109<br>-<br>-<br>-<br>-<br>-<br>-<br>616,109<br>**Endowment**<br>**Funds**<br>**£**<br>-<br>527,634<br>-<br>-<br>-<br>-<br>-<br>-<br>527,634|**Total**<br>**2024**<br>**£**<br>808,911<br>1,879,564<br>503,875<br>684<br>94,675<br>349,534<br>(630,312)<br>(46,170)|
|---|---|---|---|---|---|---|---|
||||||||<br>2,960,761<br>**Total**<br>**2023**<br>**£**<br>824,429<br>1,423,922<br>385,730<br>665<br>58,833<br>288,145<br>(539,576)<br>(42,003)|
|||||||||
||||||||<br>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<br>Between 2 and 5 years|**Group**<br>**2024**<br>**£**<br>526<br>1,314<br>1,840|**Charity**<br>**2023**<br>**£**<br>**2024**<br>**£**<br>**2023**<br>**£**<br>526<br>-<br>-<br>1,840<br>-<br>-<br>2,366<br>-<br>-|
|---|---|---|



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

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



## **27. Analysis of cash and cash equivalents** 

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