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← St Machar’s Cathedral Parish Church of Scotland Aberdeen

2025-12-31-accounts

ST MACHAR’S CATHEDRAL PARISH CHURCH OF SCOTLAND ABERDEEN

CONGREGATION NUMBER: 311927 SCOTTISH CHARITY NUMBER: SC008157

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025

MHA CHARTERED ACCOUNTANTS 12 CARDEN PLACE ABERDEEN AB10 1UR

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ST MACHAR’S CATHEDRAL PARISH CHURCH OF SCOTLAND ABERDEEN

CONTENTS

Page
Trustees’ report (including reference and administrative information) 3-7
Independent examiner's report 8
Statement offinancial activities incorporating income and expenditure account 9
Balance sheet 10
Statement ofcash flows 11
Notesandaccountingpolicies 12-23

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. ST MACHAR’S CATHEDRAL PARISH CHURCH OF SCOTLAND ABERDEEN

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 DECEMBER 2025

The Trustees present their annual report and financial statements for the year ended 31 December 2025. During the year 2025, a Union was effected between St Machar’s Cathedral and St Mary’s Church King Street, Aberdeen. While the Union was marked on 29" June with a joint service of union held in St Machar’s Cathedral, the congregation of St Mary’s had been unable to worship in the church building which had been declared unsafe before the turn of the year. The union was supported unanimously by both Kirk Sessions, and the proposal to unite was the subject of separate votes of both congregations and was passed by large majorities. St Mary’s congregation had a further vote by which they accepted that the Rev Sarah Brown be the minister of the united congregation, that it continue under the name of St Machar’s Cathedral, and that all worship be carried out in St Machar’s Cathedral. All references to St Machar's Cathedral worship and witness in this report will mean, unless the context prescribes otherwise, both the pre and post union St Machar's Cathedral.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Articles and Memorandum of Association, 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 (FRS 102)” (as amended for accounting periods commencing from 1 January 2079).

Objectives and activities

The Church of Scotland is Trinitarian in doctrine, Reformed in tradition and Presbyterian in polity. It exists to glorify God and to work for the advancement of Christ's Kingdom throughout the world. As a national Church, it acknowledges a distinctive call and duty to bring the ordinances of religion to the people in every parish of Scotland through a territorial ministry. It cooperates with other Churches in various ecumenical bodies in Scotland and beyond.

Achievements and Performance

The church’s main purpose is to lead worship. Weekly services are held in St Machar’s Cathedral every Sunday, with the morning service at 11am continuing to attract congregations in excess of one hundred. Communion is served on the last Sunday of each month, and on Easter Sunday, Pentecost and Christmas Day.

Evening services are held at 6pm. It attracts a smaller congregation and is a more contemplative service, where Communion is usually served.

All services are normally conducted by our Minister, Rev Sarah Brown. During her annual leave or other absences, we have been fortunate to have the willing support of several gifted preachers who are either members of the congregation or friends of this place.

In addition to the weekly services, worship is held to mark specific dates in the Christian calendar, or to mark public events. Throughout Holy Week daily services are held, while at Christmas, the Christingle Service, held early in the evening of Christmas Eve, and the Service of Lessons and Carols at 11pm are established features of our worship. In addition, special services are held regularly to mark public events.

The biggest issue to be faced in 2025 was the Union between St Mary’s and St Machar's, effected in June 2025. Discussions on a proposed Union had begun towards the end of 2024 but were hastened by a survey of the St Mary’s church and buildings which reached the conclusion that the buildings were unsafe and were no longer capable of use for worship or any other purposes. The church was closed in February 2025. The buildings and the site were taken into the guardianship of the Church of Scotiand General Trustees, with the intention that they be sold on the open market.

The Union between St Machar’s and St Mary’s, following on from the Union three years earlier with St George's, underlined further the challenges of a greatly extended parish, with a range of pastoral outreach and mission needs. We are pleased to say that at the end of the year we were given permission (and the necessary funds) to recruit an Associate Minister, a large part of whose duties will be focused on mission in the former parishes of St George’s and St Mary’s. At the time of writing, we have now successfully completed the recruitment process and await the arrival of the successful candidate.

Christian education continues to be addressed through holding of monthly Bible Study sessions and by classes for prospective new members. Sadly, the Sunday School has had a disappointing year as we do not have a regular supply of children attending on Sunday mornings. We have a team of experienced and able leaders, and we will examine ways in which we might attract families with children.

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ST MACHAR’S CATHEDRAL PARISH CHURCH OF SCOTLAND ABERDEEN

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

The Education Officer has continued to receive educational visits throughout the year. School visits predominated. Primary school numbers werea little down this year but that was offset by an increase in Secondary numbers. There were also visits from North East Scotland College and from Aberdeen University. Two Family Fun Days and two Welcome sessions for new students were held.

The Biodiversity project in the graveyard continued to get national recognition as an example of good environmental practice and the Gardening Group continue to offer the community a chance to be involved in the maintenance of the Graveyard and to develop their skills and awareness of eco-friendly practice.

The future use of the former St George's building remains unresolved. At the beginning of the year, the General Trustees were attempting to recover vacant possession from the occupants who had had a short term agreement. Their concern was based on a troubling survey carried out in 2024 which concluded that the building was unsafe, and with the cost of repair estimated as very high, the General Trustees and the Kirk Session agreed that the building ought to be immediately vacated and sold on the open market as soon as possible. That survey however was contradicted by a subsequent survey later in 2025. On the basis of the second survey, there is now a possibility of an off market sale to the current occupying group. The resolution of this long-standing issue is a priority for all concerned in 2026.

The Old Aberdeen Parish Grouping, set up under the Presbytery Mission Plan, has not featured this year. The union between St Machar’s and St George's means that the only remaining members are St Machar's, St Stephen's and Bridge of Don Oldmachar. The pressure of work generated by the unions has meant that the formation of the Grouping has taken a back seat for the moment.

Music continues to be central to our worship and to the life of St Machar’s. 2025 was the first complete year under the musical direction of Stuart Muir. The quality of singing in the choir continues to impress, and it means that morning worship singing is always a major feature of services. We continue to have the services of eight Choral Scholars, whose presence is supported thanks to a generous legacy from a previous Director of Music.

Outreach continues to be a major feature of the life of the congregation. Fund raising continued for our two nominated charities, Médecins Sans Frontiéres and Big Noise Torry. They received sums collected at special Christmas Services and from the proceeds of social activities such as the Poetry Afternoon held in October. We also continued to support the foodbanks at instant Neighbour and the St Vincent de Paul Society through our Food Appeals held in Lent, in the weeks leading up to the Harvest Festival and over Christmas. We are also keen participants in Christian Aid Week in May of each year, and in 2025 we collected money through the distribution of envelopes, the holding of a Bread and Cheese Lunch, and our aways popular Plant Exchange and Sale.

At St Machar’s we are always aware that while we are first and foremost a worshipping church, we are many other things as well - a major tourist attraction, a performance venue and a place of unique peace and beauty. We are proud of the fact that we have been able to open every day of the year, and provide a welcome to a variety of visitors from all over the world. Some come looking to learn more of the history of the area, some to attend concerts and some simply to enjoy the peace and beauty of the building. They are all welcome and we seek to provide tours and activities to meet their needs.

Over the year, more than 40,000 visitors were received and many of them came on Cruise ships. We are seeking to increase our income from that source by the negotiation of a set fee per coach. This will not affect the free access by individuals but will help us deal appropriately with coach visitors during busy periods.

The Education Officer, had another busy year, hosting visits from school parties, both primary and secondary. During 2025, 1524 pupils visited the Cathedral. In addition, the Education Officer continues to work with project groups such as the Gardening Group, working in partnership with the City Council to promote Biodiversity in the graveyard.

All of these activities would not be possible without the enthusiastic and loyal support of a large number of volunteers who are on hand to help welcome visitors, to prepare materials and to make the Cathedral able to operate as a very popular place for visitors, whatever they are seeking. We are much in their debt.

Financial review

During the period under review, total incoming resources were £376,689 (2024 - £281,987) of which £39,545 was for restricted funds. Total expenditure for the year was £391,260 (2024 - £325,551) of which £49,649 was from restricted funds. Net expenditure for the year before gains and losses on investments was £14,571 (2024 - £43,564 net expenditure).

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. ST MACHAR’S CATHEDRAL PARISH CHURCH OF SCOTLAND ABERDEEN

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

Financial review (continued)

The principal regular source of income for the Cathedral remains voluntary giving by members, and the main expenditure the remittance of funds to the national church which increased this year following the union with St Mary’s Church.

Fabric repairs increased substantially this year and include the design and installation of a new lighting system for £12,000 and external works to repair water ingress to the south and east elevations, the central aisle and both towers at a cost of £33,267 (including architect management fee).

The reserves position in both unrestricted and restricted funds remains healthy.

Investment policy and performance

The majority of the charity's investments are held in Church of Scotland Investors Trust funds.

The Church of Scotland Investors Trust provides three funds for investors which offer a simple and economical medium for the investment of monies. The charity has decided to invest in two of the funds: the Growth Fund and the Income Fund. The Growth Fund is largely equity based and is intended for long-term investment. The fund is operated on a unitised basis and aims to provide capital growth. The Income Fund is intended for medium-term investment and aims to provide immediate high income with funds invested predominantly in fixed-interest securities and operated on a unitised basis. Units in both funds can be purchased or sold monthly.

Risk management

The Kirk Session is aware of its responsibilities for the safeguarding of the church's assets and receives regular reports, in the form of management accounts, in order to identify any trends which might, if undetected, threaten the stability of our financial position. In particular, the following areas of risk have been identified as priorities for action and these are set out here with the proposed mitigation measures:

The major risks attaching to the building fabric were contained within the contract for the refurbishment of the roof, stained glass windows and ceiling. Although the contract termination date was some time ago, most of the year was covered by the Defects Liability period, during which the major contractors bore much of the risk for the integrity of the roof etc. But no major problems were encountered and the retention has now been released, with the happy result that all expenditure came within budget.

In addition, a sum of £64,567 was spent on repairs and maintenance of the Cathedral and other associated buildings.

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ST MACHAR’S CATHEDRAL PARISH CHURCH OF SCOTLAND ABERDEEN

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

Risk management (continued)

Reserves policy

At the end of the year the Church held unrestricted reserves of £966,441 (2024 - £933,136).

The Church held restricted reserves of £852,129 (2024 - £810,104) which have been provided for the purposes specified in Note 16 to the financial statements.

Structure, governance and management

The congregation is a registered charity, number SC008157 and is administered in accordance with the terms of the Model Deed of Constitution (Unitary Form). It is subject to the Acts and Regulations of the General Assembly of the Church of Scotland.

Members of the Kirk Session are the charity trustees. The Kirk Session members are the elders of the church and are chosen from those members of the church who are considered to have the appropriate gifts and skills. The minister, who is a member of the Kirk Session, is elected by the congregation and inducted by the Presbytery. Within the unitary framework, the Kirk Session is responsible for the management of the church’s assets and for spiritual matters within the church. The Kirk Session meets at least eight times a year.

Reference and administrative information

Charity name:

St Machar’s Cathedral Parish Church of Scotland Aberdeen

Congregation number: 311906

Charity registration number: $C008157

Operational address: Cathedral Office The Chanonry Aberdeen AB24 1RQ

Trustees

Trustees, which include the principal office bearers, who served since 1 January 2025 were:

Kirk Session

David Birse Rev. Sarah Brown Jane Cameron (to February 2025) Sheila Cameron Cameron Campbell Alexis Darg Kathleen Fraser Alan Grant Janice Hutchinson (from June 2025) Jonathan Le Poidevin Muriel Love (to June 2025) Lesley Macnab Jan McRobbie Catherine Mason Shona Mutch Judith Norton (to June 2025) Daniel Pedersen Alexander Riddell Valerie Sinclair Helen Stephen Michael Strachan Christiane Taylor Rev. Prof. Philip Ziegler

Dr Shona Buxton William Cameron (to June 2025) John Fraser (to September 2025) Prof. David Hewitt Patricia Le Poidevin Sandra Massey fan Munro Fola Omidiji . Elspeth Ross Peter Stephen Valerie Thomas

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. ST MACHAR’S CATHEDRAL PARISH CHURCH OF SCOTLAND ABERDEEN

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

Principal Office Bearers

Reverend Sarah Brown Minister Alan Grant Session Clerk - Associate Session Clerk Sandra Massey Treasurer Independent Examiner

William D Anderson, Chartered Accountant, MHA, 12 Carden Place, Aberdeen, AB10 1UR

Bankers

Bank of Scotland plc, 48 Upperkirkgate, Aberdeen, AB10 1BA

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 charity trustees to prepare financial statements for each year which showa true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing the 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 enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). They are also responsible for safeguarding the assets of the charity and hence for 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 on the congregation's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approved by the Trustees and signed on their behalf, 2 & od M pel Log

Alan Grant Session Clerk

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ST MACHAR’S CATHEDRAL PARISH CHURCH OF SCOTLAND ABERDEEN

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INDEPENDENTST MACHAR’S CATHEDRALEXAMINER’S PARISHREPORT CHURCHTO THE OFTRUSTEES SCOTLANDOF ABERDEEN

FOR THE YEAR ENDED 31 DECEMBER 2025

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| report on the accounts of the charity for the year ended 31 December 2025 set out on pages 9 to 23.

Respective responsibilities of trustees and independent examiner

The charity's Trustees are responsible for the preparation of the accounts in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended).

The Trustees consider that the audit requirement of Regulation 10(1) (a) to (c) of the Accounts Regulations does not apply. It is my responsibility to examine the accounts as required under section 44(1) (c) of the Act and to state whether particular matters have come to my attention.

Basis of independent examiner’s statement

My examination is carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) regulations 2006 (as amended). An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeks explanations from the Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently | do not express and audit opinion on the view given by the accounts.

Independent examiner’s statement

In the course of my examination no matter has come to my attention

  1. which gives me reasonable cause to believe that any material respect of the requirements:

  2. e to keep accounting records in accordance with Section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations (as amended), and

  3. e toprepare accounts which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations (as amended)

have not been met, or

  1. to which, in my opinion, attention should be drawn in orderto enable a proper understanding of the accounts to be reached.

William D Anderson Chartered Accountant For and on behalf of MHA Aberdeen

MHA is the trading name of MHA Audit Services LLP, a limited liability partnership based in England and Wales (registered number 00455542).

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. ST MACHAR’S CATHEDRAL PARISH CHURCH OF SCOTLAND ABERDEEN

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2025

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|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |Unrestricted|Restricted|Unrestricted|Restricted| |funds|funds|Total|funds|funds|Total| |2025|2025|2025|2024|2024|2024| |Note|£|£|£|£|£|£| |Income|and|endowments|from:| |Donations|and|legacies|3|149,194|12,003|161,197|123,027|20,415|143,442| |Charitable|activities|4|99,925|-|99,925|82,817|-|82,817| |Investments|5|30,877|26,729|57,606|26,786|21,539|48,325| |Other|6|57,148|813|57,961|7,403|-|7,403| |Total|income|337,144|39,545|376,689|240,033|41,954|281,987| |Expenditure|on:|7| |Raising|funds|72,063|-|72,063|70,220|-|70,220| |Charitable|activities|269,548|49,649|319,197|208,760|46,5771|255,331| |Total|expenditure|341.611|49,649|391,260|218,980|46,574|325,554| |Net|(expenditure)/income|before| |gains|and|losses|on|investments|(4,467)|(10,104)|(14,571)|(38,947)|(4,617)|(43,564)| |Net gains|on|investments|8|46,364|43,537|89,901|36,929|41,358|18,287| |Net|(expenditure)/income|41,897|33,433|75,330|(2,078)|36,741|34,723| |Transfers|between|funds|(8,592)|8,592|-|(8,168)|8,168|-| |Net movement|in|funds|33,305|42,025|75,330|(10,186)|44,909|34,723| |Funds|brought forward|16|933,136|810.104|1,743,240|943,322|765.195|1,708,517| |Funds|carried forward|16|966,441|852.129|_1,818,570|933,136|810.104|1,743,240|

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ST MACHAR’S CATHEDRAL PARISH CHURCH OF SCOTLAND ABERDEEN

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BALANCE SHEET

AS AT 31 DECEMBER 2025

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|||||||||| |---|---|---|---|---|---|---|---|---| |Total|Total| |2025|2024| |Note|£|£| |Fixed|assets:| |Tangible|assets|11|-|-| |Investments|12|1,604,542|1,461,589| |Total|fixed|assets|1,604,542|1,461,589| |Current|assets:| |Debtors|13|36,929|33,216| |Cash|at|bank|and|in|hand|212,751|281,762| |Total|current|assets|249,680|314,978| |Liabilities:| |Creditors|falling|due|within|one|year|14|(35,652)|(33,327)| |Net|current|assets|214,028|281,651| |Net|assets|15|-1.818,570|1,743,240| |The|funds|of the|charity:| |Restricted|16|852,129|810,104| |Unrestricted|16|966,441|933,136| |Total|charity funds|1,818,570|1,743,240|

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The accounts were approved by the Trustees on LLUn Mach

2026 and signed on their behalf by:

Alan Grant Sandra Massey Session Clerk Treasurer

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. ST MACHAR’S CATHEDRAL PARISH CHURCH OF SCOTLAND ABERDEEN

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2025

Total Total
2025 2024
Note £ £
Net cash used in operating activities 19 (73,565) _521,110
Cash flows from investing activities
Interest and dividends 57,606 48,325
Purchase of fixed assets (53,052) (459,981)
Proceeds from saie of investments = -
Netcash provided by investing activities 4.554 (411,656)
Cash flows from financing activities
Advanced - -
Repayment of borrowings - -
Net cash provided by financing activities x -
Change in cash and cash equivalents in the year (69,011) 109,454
Cash and cash equivalents brought forward 281,762 172,308
Cashandcashequivalentscarriedforward 212.751 _281,762

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ST MACHAR’S CATHEDRAL PARISH CHURCH OF SCOTLAND ABERDEEN

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NOTES AND ACCOUNTING POLICIES

FOR THE YEAR ENDED 31 DECEMBER 2025

  1. Accounting policies

The principal accounting policies, which have been applied consistently in the current and preceding year in dealing with items which are considered material to the accounts, are set out below.

(a) Accounting convention

The financial statements have been prepared in accordance with the charity's constitution, 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 (FRS 102)” (as amended for accounting periods commencing from 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the foundation. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

(b) Going concern

.

At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Board of Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

(d) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Receipt of a legacy is recognised when it is probable that it will be received. Receipt is normally probable when there has been grant of confirmation, the executors have established that there are sufficient assets in the estate, after settling any liabilities, to pay the legacy and any conditions attached to the legacy are either within the control of the charity or have been met.

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. In accordance with the Charities SORP (FRS102) the general volunteer time of congregation members is not recognised. On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the 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 as expenditure in the period of receipt.

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.

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. ST MACHAR’S CATHEDRAL PARISH CHURCH OF SCOTLAND ABERDEEN

NOTES AND ACCOUNTING POLICIES

FOR THE YEAR ENDED 31 DECEMBER 2025

  1. Accounting policies (continued)

(e) Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure can be classified under the following activity headings:

(f) Tangible fixed assets

The charity has the right to occupy and use for its charitable objects certain tangible fixed assets, including the Church, halls, gatehouses and manse, vested in the Church of Scotland General Trustees. No consideration is payable for the use of these assets. Expenditure incurred on the repair and maintenance of these assets is charged as resources expended in the Statement of Financial Activities in the period in which the liability arises.

The charity classifies the lease of printing equipment as an operating lease; the title to the equipment remains with the lessor and equipment is replaced every 5 years whilst the economic life of such equipment is normally 10 years.

Rental charges are charged on a straight line basis over the period of the lease.

Fixed asset investments are stated at market value at the balance sheet date. Unrealised gains and losses represent the difference between the market value at the beginning and end of the financial year or, if purchased in the year, the difference between cost and market value at the end of the year. Realised gains and losses represent the difference between the proceeds on disposal and the market value at the start of the year or cost if purchased in the year.

St Machar's Cathedral Parish Church of Scotland Aberdeen, is recognised as a charity for the purposes of applicable taxation iegisiation and is therefore not subject to taxation on its charitable activities. The charity is not registered for VAT and resources expended therefore include irrecoverable input VAT.

) Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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ST MACHAR’S CATHEDRAL PARISH CHURCH OF SCOTLAND ABERDEEN

NOTES AND ACCOUNTING POLICIES

FOR THE YEAR ENDED 31 DECEMBER 2025

  1. Accounting policies (continued)

(k) Financia! instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the foundation becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the foundation’s contractual obligations expire or are discharged or cancelled.

The charity operates a defined contributions pension scheme. Contributions are charged in the accounts as they become payable in accordance with the rules of the scheme.

2. Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Trustees 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

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. ST MACHAR’S CATHEDRAL PARISH CHURCH OF SCOTLAND ABERDEEN

NOTES AND ACCOUNTING POLICIES

FOR THE YEAR ENDED 31 DECEMBER 2025

3. Donations and legacies

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|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |Unrestricted|Restricted|Unrestricted|Restricted| |funds|funds|Total|funds|funds|Total| |.|2025|2025|2025|2024|-|2024|2024| |£|£|£|£|£|£| |Offerings|99,252|-|99,252|90,088|-|90,088| |National|Giving|Day|income|7,347|-|7,347|3,552|-|3,552| |Tax|recovered|on|gift|aid|26,305|-|26,305|23,812|-|23,812| |Legacies|4,000|-|4,000|-|~|-| |Grants|6,742|7,953|14,695|3,018|7,415|10,433| |Endowment|income|3,356|-|3,356|2,557|-|2,557| |Poor funds|-|4,050|4,050|-|13,000|13,000| |Other income|2,192|-|2,192|-|-|-| |149,194||[12,003]|_161,197|123.027|20.415|_143,.442| |Income|from|charitable|activities| |Unrestricted|Restricted|Unrestricted|Restricted| |funds|funds|Total|funds|funds|Total| |2025|2025|2025|2024|2024|2024| |£|£|£|£|£|£| |Weddings|7,425|-|7,425|2,350|-|2,350| |Use|of premises|39,959|-|39,959|44,141|-|44,141| |Outreach|surplus|17,071|-|17,071|8,694|-|8,694| |Tour and|coach|visits|11,560|-|11,560|1,668|-|1,668| |Tourist|collection|box|23,910|-|23,910|25,964|-|25,964| |—99,925|___-|99,925|—82.817|+|—|[82,817]| |Investment|income| |Unrestricted|Restricted|Unrestricted|Restricted| |Funds|funds|Total|funds|funds|Total| |2025|2025|2025|2024|2024|2024| |£|£|£|£|£|£| |Investment|dividends|30,303|26,380|56,683|25,014|20,346|45,360| |Deposit|interest|574|349|923|1,772|1,193|2,965| |=30,877|26.729|_57,606|26.786|_21539||[48,325]| |Other|income| |Unrestricted|Restricted|Unrestricted|Restricted| |Funds|funds|Total|funds|funds|Total| |2025|2025|2025|2024|2024|2024| |£|£|£|£|£|£| |Receipts|from|General|Trustees|-|-|-|7,403|-|7,403| |Transfer|of|union|balance|57,148|813|57,961|-|-|-|

----- End of picture text -----

4. Income from charitable activities

  1. Investment income

  2. Other income

15

ST MACHAR’S CATHEDRAL PARISH CHURCH OF SCOTLAND ABERDEEN

NOTES AND ACCOUNTING POLICIES (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

  1. Analysis of expenditure
Unrestricted Restricted Unrestricted Restricted
funds funds Total funds funds Total
2025 2025 2025 2024 2024 2024
£ £ £ £ £ £
Raising funds
Offering envelopes and stewardship 120 - 120 254 - 254
Tourist brochures and translations - - - 2,841 - 2,841
Salaries — beadles 27,408 - 27 408 26,315 - 26,315
Heat, light and water rates 14,403 - 14,403 15,046 - 15,046
Hall running costs 16,358 - 16,358 13,936 - 13,936
Weddings: locum ministers and 1,700 - 1,700 240 - 240
organist
Performing Rights charges 368 - 368 745 - 745
Administrative expenditure 11,706 - 11,706 10,843 - 10,843
2.063 = 12063 _70220 = __10,220
Charitable activities
Ministries and Mission allocation 104,436 - 104,436 82,353 - 82,353
Presbytery dues 4.626 : 4,626 3,869 - 3,869
109,062 - 109,062 86,222 - 86,222
Minister's expenses and pulpit supply 4,695 - 4,695 4,982 - 4,982
Salaries — beadles 10,963 - 10,963 10,526 - 10,526
Salaries — music - 25,295 25,295 - 22,814 22,814
Fabric repairs and maintenance 64,567 - 64 567 19,133 - 19,133
Council tax 2,441 - 2,441 3,075 - 3,075
Business rates 13,073 - 13,073 - - -
Heat, light and water rates 15,139 - 15,139 20,915 - 20,915
Insurance 17,588 - 17,588 15,449 - 15,449
Security systems 2,667 - 2,667 10,653 - 10,653
Administrative expenditure 17,559 - 17,559 16,264 - 16,264
Advertising 286 - 286 1,245 - 1,245
Organ expenditure - 3,478 3,478 - 2,653 2,563
Music - 2,383 2,383 - 358 358
Sunday school expenses - - - 74 - 74
Communion and other expenses 466 - 466 2,573 - 2,573
Donations 47 - 47 - - -
Poor fund payment - 2,901 2,901 - 5,605 5,605
Auditor's fee - - - 3,660 - 3,660
Independent examiner's fee 8,952 - 8,952 8,040 - 8,040
Outreach & education expenses 2,043 15,592 17,635 5,187 15,141 20,328
iona Youth Festival trip - : : 162 - 162
269.548 _49649 _319.197 _208.760 _46.571 _255,331
Total 341.611 _49.649 _391.260 _278.980 _46571 _325,551

Support costs have not been separately identified as the Trustees consider there is only one charitable activity. Therefore support costs relate wholly to that activity and have not been separately been identified.

16°

. ST MACHAR’S CATHEDRAL PARISH CHURCH OF SCOTLAND ABERDEEN

NOTES AND ACCOUNTING POLICIES (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

8. Net gains/(losses) on investments

Unrestricted Restricted Unrestricted Restricted
funds funds Total funds funds Total
- 2025 2025 2025 2024 2024 2024
£ £ £ £ £ £
Realised gain/(loss) on investments - - - - - -
Unrealised gain/(loss) on investments 46 364 43,537 89.901 36,929 41,358 78,287
46,364 __43.537 __89,901 —36.929 __41,358 _(8.287
Staff costs and numbers
2025 2024
£ £
Salaries—secretary and beadles 60,689 57,882
Salaries — music 25,295 22,814
Salaries — education and outreach workers 15,592 15,141
101,576 ___95,837
The average number ofemployees during the yearwas as follows:
Number Number
Administration 1 1
Beadles 3 4
Music
Education and Outreach		 8
_tt		 7
_+t
als 8
  1. Staff costs and numbers

No employee had employee benefits in excess of £60,000 (2024 - £60,000).

All Church of Scotland congregations contribute to the National Stipend Fund which bears the costs of all ministers’ stipends and employer's contributions for national insurance, pension and housing and loan fund. Ministers’ stipends are paid in accordance with the national stipend scale, which is related to years of service. For the year under review the minimum stipend was £32,433 and the maximum stipend (in the fifth and subsequent years) was £39,856.

10. Trustee remuneration and related party transactions

During the year eight Trustees received reimbursement of expenses incurred totalling £9,707 and one Trustee received payments for pulpit supply services totalling £400.

During the year a total of £28,678, excluding Gift Aid, was donated to the Congregation by Trustees.

17

ST MACHAR’S CATHEDRAL PARISH CHURCH OF SCOTLAND ABERDEEN

NOTES AND ACCOUNTING POLICIES (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

11. Tangible fixed assets

Following investigation the Trustees have now been able to establish that the property known as Dunbar Street Hall is held by the Trustees on behalf of the Congregation. The land on which this property was built over 100 years ago was granted to the Congregation in order to build the hall, subject to many onerous conditions which have now expired as a result of recent legislation. Accordingly, the Trustees are of the opinion that this land will not revert back to the superior and as a result the land and hall erected thereon now belongs to the Trustees.

The financial statements do not record any value for this land and property as the historic cost is unknown and is not deemed to be a material amount given the length of time since the use of the land was granted and the hall erected thereon.

The Trustees have obtained a current valuation of this property from Shepherd, Chartered Surveyors, of £170,000 who have valued the property on 17 April 2018 on the basis of market value with the benefit of vacant possession. The Trustees have no plans to dispose of this property.

12. Investments

2025 2024
£ £
Cost
Market value at 1 January 2025 1,461,589 923,321
Additions
Disposais		 53,052
-		 459,981
-
Realised gain/(loss) on investments - -
Unrealised gain/(loss) on investments 89,901 78,287
Market value at 31 December2025 1,604,542 1,461,589
Investments at cost 1A211,350 1,198,198
The following investments are held:
Church ofScotland Investors Trust Growth Fund 835,348 867,457
Church of Scotland Investors Trust Income Fund 769,194 594,132
1,604,542 1,461,589

13. Debtors

2025 2024
£ £
Grant income 3,264 1,431
Gift aid tax/investment tax recoverable 26,118 23,811
Other debtors 1,547 7,974
36,929 _33,216

18

. ST MACHAR’S CATHEDRAL PARISH CHURCH OF SCOTLAND ABERDEEN

NOTES AND ACCOUNTING POLICIES (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

14. Creditors: amounts falling due within one year

==> picture [518 x 66] intentionally omitted <==

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |2025|2024| |£|£| ||| |Accruals|and|prepaid|income|35,652|33,327| |35,652|33.327|

----- End of picture text -----

15. Analysis of net assets among funds

==> picture [522 x 78] intentionally omitted <==

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |Unrestricted|Designated|Restricted|Total| |£|£| |Investments|169,644|665,704|769,194|1,604,542| |Current|assets/(liabilities)|(159,336)|290,429|82.935|214,028| |Net assets|at|31|December|2025|10,308|956.133|_852,129|1,818,570|

----- End of picture text -----

19

ST MACHAR’S CATHEDRAL PARISH CHURCH OF SCOTLAND ABERDEEN

NOTES AND ACCOUNTING POLICIES (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

16. Movements in funds

Gain/
1January Incoming Resources (loss) on 31 December
2025 resources Expended investments Transfers 2025
£ £ £ £ £ £
Restricted funds
Music fund 736,084 25,239 (31,156) 43,537 - 773,704
Adam fund 1,671 56 - - - 1,727
Poor fund 64,700 6,185 (2,901) - - 67,984
Tomb fund 1,724 57 - - - 1,781
Fabric fund 5,925 195 - - - 6,120
John Calder Trust fund - 7,000 (15,592) - 8,592 -
Senior citizen fund - 515 - - - 515
Benevolent fund - 298 - - : 298
810,104 39,545 (49,649) 43,537 8,592 852,129
Unrestricted funds
Congregational fund - 229 464 (207,169) - (11,987) 10,308
Designated funds
Pastoral outreach fund - §2,542 (53,517) - 975 -
DunbarSt hall fund
Fabricfund		 -
929,239		 14,382
40,144		 (16,358)
(64,567)		 -
45,770		 1,976
-		 -
950,586
Reserve fund 2,572 - - - - 2,572
Special projects fund 1,178 1,051 - 594 - 2,823
Benevolent fund 147 5 - - - 152
Church fabric fund - (384) - - 384 -
Manse fabric fund - (60) : - 60 -
933,136 _337,144 (341,611) —46,364 _(8.592) _966.441
Totalfunds 1,743,240 376.689 _(391,260) 89,901 - 1,818,570

20

. ST MACHAR’S CATHEDRAL PARISH CHURCH OF SCOTLAND ABERDEEN

NOTES AND ACCOUNTING POLICIES (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

16. Movements in funds (continued)

==> picture [530 x 321] intentionally omitted <==

----- Start of picture text -----
||||||||||| |---|---|---|---|---|---|---|---|---|---| |Gain/| |1January|Incoming|Resources|(loss)|on|31|December!| |2024|resources|expended|investments|Transfers|2024| |£|£|£|£|£|£| |Restricted|funds| |Music|fund|700,394|27,300|(25,556)|41,358|-|736,084| |Adam|fund|1,626|45|-|-|-|1,674| |Poor|fund|55,736|8,068|(8,384)|-|-|64,700| |Tomb|fund|1,677|46|-|-|-|1,724| |Fabric|fund|5,762|157|-|-|-|5,925| |John|Calder|Trust|fund|-|7,000|(15,141)|-|8,141|-| |Special|projects|fund|-|(27)|:|-|27|-| |Unrestricted|funds| |Congregational|fund|-|163,412|(193,708)|-|(30,296)|-| |Designated|funds| |Pastoral|outreach|fund|-|36,327|(52,203)|-|15,876|-| |Dunbar|St|hall|fund|-|12,253|(13,936)|-|1,683|-| |Fabric|fund|940,096|28,023|(19,133)|36,276|(56,023)|929,239| |Reserve|fund|2,572|-|-|-|-|2,572| |Special|projects|fund|511|14|-|653|-|1,178| |Benevolent|fund|143|4|-|-|:|147| |943,322|_240,033|£278,980)|36.929|(8,.168)|_933.136| |Total funds|1,708,517|_281,987|(325,551)|__78.287|=|«=|1,743,240|

----- End of picture text -----

Restricted funds

The purpose of the Music fund is to support and enhance music for liturgical purposes and the musical activities of the congregation.

The purpose of the Adam Augmentation fund is to provide a modest addition to the Minister's salary.

The purpose of the Poor fund is to support appropriate charitable causes outwith the Cathedral and also pastoral work with infirm or housebound members of the congregation.

The purpose of the Tomb fund is to support the upkeep of tombs and memorials within the care of the Cathedral.

The purpose of the Fabric fund is to provide support for repairs, maintenance, renovation and capital expenditure on Cathedral buildings.

The purpose of the income from the John Calder Trust is to support the cost of the salary for an Education officer.

The purpose of the Special Projects fund is to support the Cathedral’s development plan; phase one, the refurbishment of the interior, was completed in 2018. During 2019, 2020, 2021 and 2022 there was expenditure incurred on phase two, work on the roof, windows and ceiling.

The purpose of the Senior Citizen fund, received following the Union with St Mary’s, is to support pastoral work with infirm or housebound members of the congregation.

The purpose of the Benevolent fund, received following the Union with St Mary’s, is to support appropriate charitable causes within the Parish.

21

ST MACHAR’S CATHEDRAL PARISH CHURCH OF SCOTLAND ABERDEEN

NOTES AND ACCOUNTING POLICIES (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

16. Movements in funds (continued)

Designated funds

The purpose of the Pastoral outreach fund is to provide support for the opening of the Cathedral to the public on every day of the year, and community outreach generally.

The purpose of the Dunbar St hall fund is an income/expenditure fund for the Dunbar St Hall.

The purpose of the Fabric fund is to provide support for repairs, maintenance, renovation and capital expenditure on Cathedral buildings.

The purpose of the Reserve fund is to maintain a financial reserve which can be applied to any Cathedral Fund.

The purpose of the Special Projects fund is to support the Cathedral’s development plan; phase one, the refurbishment of the interior, was completed in 2018. During 2019, 2020, 2021 and 2022 there was expenditure incurred on phase two, work on the roof, windows and ceiling.

The purpose of the Benevolent fund is to help the needy of the parish at the discretion of the minister.

The purpose of the Church fabric fund is to provide support for repairs and maintenance on St Mary's church buildings.

The purpose of the Manse fabric fund is to provide support for repairs and maintenance of St Mary's manse.

17. Volunteers

In common with all congregations of the Church of Scotland the congregation benefits from the contribution made by volunteers who give their time and talents willingly for the benefit of the Church. The areas of congregational life which rely on the contribution of volunteers are many and varied and much of the activity would be unable to continue were it not for the commitment shown.

18. Controlling party

The charity is under the control of the Trustees, as detailed on page 6.

19. Reconciliation of net movement in funds to net cash flow from operating activities

==> picture [518 x 109] intentionally omitted <==

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |2025|2024| |£|£| |Net|movement|in|funds|75,330|34,723| |Deduct|interest|income|(57,606)|(48,325)| |Deduct|gains|on|investments/add|back|losses|(89,901)|(78,287)| |Decrease/(increase)|in|debtors|(3,713)|601,380| |increase/(decrease)|in|creditors|2,325|11,619| |Net cash|used|in|operating|activities|(73,565)|521,110|

----- End of picture text -----

22

. ST MACHAR’S CATHEDRAL PARISH CHURCH OF SCOTLAND ABERDEEN

NOTES AND ACCOUNTING POLICIES (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

20. Collections for third parties

During the year the following collections were made for third parties:

2025 2024
£ £
Medecins Sans Frontieres 271 1,199
Big Noise Torry 271 1,214
Disaster Emergency Commission 405 514
instant Neighbour 1,009 298
St Vincent de Paul 550 -
Christian Aid 403 -
Gordon Highlanders Museum 677 -
Crossreach 90 -
MacMillan 700 -
Tilly Flat 355 © 713
Star Flat 354 -
Sight Savers 709 -
Judith Norton - 1,234
S194 = __5,172

23

ST MACHAR’S CATHEDRAL PARISH CHURCH OF SCOTLAND ABERDEEN

APPENDIX TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FUNDS HELD ON BEHALF OF THE CONGREGATION BY THE CHURCH OF SCOTLAND GENERAL TRUSTEES

2025 2024
oo £ £
Capital account
Credit balance at 31 December 2024 at cost 179,523 179,523
Property costs - :
Credit balance at 31 December2025 at cost 179,523 179,523
Market value ofbalances at 31 December2025 179,523 9,523
Revenue account
Creditbalance at 31 December2024 11,317 9,338
Transfer of union balance 55 -
investment income 11,706 10,342
Administration costs (410) (960)
Property costs - (7,403)
Credit balance at 31 December2025 22,668 11.317
Temporary funds
Debit balance at 31 December2024 (2,400) -
Transfer of union balance (1,330) -
Advance from consolidated fabric fund 10,000 -
Property sale~456 King Street 238,999 -
Legal and professional fees (8,110) -
Property costs (13,707) (2,400)
Creditbalanceat31December2025 223,452 (2,400)

24