OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2024-12-31-accounts

Charity registration number SC008167 (Scotland)

UNITED FREE CHURCH OF SCOTLAND ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

UNITED FREE CHURCH OF SCOTLAND

LEGAL AND ADMINISTRATIVE INFORMATION

Charity number (Scotland) SC008167 Auditor Alexander Sloan LLP 180 St Vincent Street Glasgow G2 5SG Bankers The Royal Bank of Scotland plc Glasgow Charing Cross West Branch 9 Clifton Place Glasgow G3 7JU Investment Advisers Evelyn Partners Investment Services Ltd 130 St Vincent Street Glasgow G2 5SE Solicitors Diakoneo Legal Services Limited 48 Speirs Wharf Glasgow G4 9TH Email Address office@ufcos.org.uk Website www.ufcos.org.uk

UNITED FREE CHURCH OF SCOTLAND

CONTENTS

Page
Trustees' report 1 - 7
Independent auditor's report 8 - 10
Statement of financial activities 11 - 12
Balance sheet 13
Statement of cash flows 14
Notes to the financial statements 15 - 42

UNITED FREE CHURCH OF SCOTLAND

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2024

The trustees present their annual report and financial statements for the year ended 31 December 2024.

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 church'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)" (effective 1 January 2019).

Objectives and activities

The principal objective of the United Free Church of Scotland is the promotion of the Christian faith in Scotland and beyond. This is done in co-operation with other Christian denominations.

The 'day to day' work is carried out through 46 local congregations around Scotland with a total membership of 1,620 at the end of 2024. In local congregations, the main activities include regular services with worship and preaching; meetings for prayer and Bible study; opportunities for meetings of groups for children and young people, Women’s Associations etc. Through congregations, pastoral care of members and others is undertaken as well as activities which are intended to be of benefit to the local community. Congregations are encouraged to develop ways of engaging with their local communities by providing activities and opportunities through which such contacts can develop. Church facilities are made available to community-based groups in which church members may be involved as volunteers.

The ministry, activities and mission of congregations are supported, encouraged and overseen by three Presbyteries and by the General Assembly through its Standing Committees. Presbyteries conduct periodic reviews of congregations every five years (‘Quinquennial Visitations’). As part of this process, Kirk Sessions within congregations are asked to review their activities over the previous five years and identify their priorities and plans for the coming five years. Presbytery appoints representatives to meet with the Kirk Session and temporal court to discuss and encourage the work locally with a report then brought to Presbytery. At other times, Presbytery will seek to be aware of what is happening in each congregation with a view to visiting as appropriate and offering suitable advice and support. Presbytery can pass matters to the appropriate Assembly Committee with a view to them offering suitable assistance.

The Standing Committees of the General Assembly seek to offer appropriate guidance, support and resources to strengthen the ministry and mission of congregations so that they are better able to develop the work in their communities as they engage in appropriate mission and evangelism.

All areas of the Church rely on the invaluable contribution made by volunteers. In congregations they give leadership (along with the Minister etc.) through the Kirk Session and temporal court, through participation in the leadership of worship, in the organisations and other activities of the congregation to nurture the people within the church and to engage in outreach activities in the community. It is impossible to quantify the amount of time given in this way but it is very considerable and the ongoing work of the church would not be possible without this commitment. Many of those who serve in Presbyteries, Assembly Committees and in the General Assembly itself as well as in denominational activities are also volunteers who serve in this way in addition to their involvement locally.

The Church approves the emphasis of the Declaratory Acts on the love of God for all mankind, the free offer of salvation to all, the obligation of the Universal Church to make known the Gospel throughout the world, and the renunciation of coercion, persecution and intolerance in matters of religion.

Grant Making Policy

The Church considers applications from congregations for grant funding and loan advances. The applications are reviewed within the context of the Church’s governing document. Congregations that apply for loan assistance are required to repay the loan over an extended period which is agreed between the General Trustees and the congregation’s Temporal Court and an appropriate rate of interest may be charged.

UNITED FREE CHURCH OF SCOTLAND

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

Achievements and performance

During the year, the number of Congregations reduced from 47 to 46. Work in each of the congregations, however, has continued and there have been a number of initiatives to give support and encouragement.

During 2024 the pressures within some congregations caused by declining numbers and an ageing membership led several congregations to decide to seek dissolution.

The Committee structure put in place after the 2020 General Assembly has ensured a more flexible administration. The Committees are as follows:

Governance: with responsibility for

Christian Life and Mission: with responsibility for

Ministry: with responsibility for the selection, support, training, recognising and equipping those who minister in the Church.

Some of the achievements of the Committees in the period under review are as follows:-

UNITED FREE CHURCH OF SCOTLAND

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

Financial review

Results for the year

The financial statements for the year are set out on pages 11 to 42. Per the Statement of Financial Activities on page 11, the Church reported Net Income (i.e. a surplus) for the year of £617,747 (2023 - Surplus £1,399,268) after realised and unrealised gains on investments of £201,262 (2023 – realised and unrealised gains totalling £91,525) and gain on revaluation of property of £96,500 (2023: £nil). At 31 December 2024, the Church had total reserves of £5,541,204 (2023 - £4,923,457) of which £747,422 (13.49%) related to Restricted Funds (2023 - £708,054 (14.38%)).

Going concern

The Church holds a healthy cash and bank balance and has continued to meet its liabilities, as they fall due, since the year end. The Trustees have therefore prepared the financial statements on a going concern basis.

Reserves policy

It is the Church’s policy to maintain unrestricted reserves, i.e. funds not committed or invested in fixed assets, at a level which equates to between three and six months of unrestricted expenditure, currently between £356,000 and £713,000 which provides sufficient funds for ministry, administration and support costs.

The Church’s unrestricted general reserves at 31 December 2024 amounted to £3,277,208 (2023: £2,720,884). This excludes designated property reserves which, although unrestricted, are tied up in fixed assets. The level of reserves has increased due to the unusual number of property transactions in the last year.

The level of reserves are considered acceptable to the Trustees.

Principal funding sources

The principal source of the Church’s funding is through contributions from individual congregations. Church Funds mainly represent donations, bequests, and legacies given to maintain the general and specific purposes of the Church in both home and overseas mission, to train Ministers and Ministry Assistants and to support congregations, as required, to maintain their witness, ministry and property. In accordance with the terms of such gifts, funds are unrestricted, designated, restricted, or permanent

endowment (as defined in this Report) and are applied with income therefrom to further the general and specific purposes and objectives of the Denomination.

Investment policy

The Trustees have engaged Evelyn Partners as investment managers with discretionary authority based on a “medium” relative risk profile with an income orientation from gilts and equities and applying an ethical investment policy avoiding investments where there is a significant involvement in armaments, alcohol and gambling. The investment managers have undertaken an ethical review of the portfolio which was accepted by the Trustees. Portfolio performance is measured using a range of FTSE and APCIMS Indices.

Reviews are carried out from time to time of our relationship with the investment managers, the performance and content of the investment portfolio, on the basis of the policy set out above. The present arrangements are considered to be satisfactory and no material change is proposed.

Pooled investment funds

At the request of individual congregations, the Trustees have agreed investment pooling arrangements in place to invest and manage specific funds on their behalf and to report annually on transactions which have taken place at their request, and on investment/interest income earned and investment performance. These funds are accounted for in accordance with Section 22 of the Charities SORP FRS102 and are detailed in Note 16 of the financial statements.

The shared balances attributable to Congregations are included in the respective congregation’s Report and Accounts.

UNITED FREE CHURCH OF SCOTLAND

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

Social Investments

United Free Church of Scotland has a number of social investments which are held to further our charitable purposes. Details of which are found in note 30 of the financial statements.

Statement on Risk

The Governance Committee, as Trustees of the denomination, have implemented a formal risk assessment process. This involves identifying the major types of risks which the Church faces, prioritising them in terms of potential impact and likelihood of occurrence, and identifying means of mitigating them. The Trustees are aware that risk assessment is not a one-off exercise and a review is carried out on an annual basis. This year’s review identified the main risks as:-

The Trustees seek to address these issues in consultation with the other committees of the General Assembly and with the General Trustees. The Committees of the General Assembly are continuing to consult with congregations and Presbyteries in order to develop new arrangements in the most helpful way and to review arrangements set up in recent years to ensure their effectiveness. It is recognized that such initiatives may require significant financial support from the denomination at least for a number of years, but the Trustees consider this to be a worthwhile use of the resources of the denomination, albeit that not all may prove successful. The appointment of part-time Ministers and Ministry Assistants in smaller congregations continues to be of considerable benefit in a number of congregations.

Presbyteries seek to offer advice and support to congregations to ensure good governance locally. As a denomination we are members of the Scottish Churches Committee and the Churches Legislation Advisory Service which assists us in becoming familiar with new legislation as it is introduced. Help from suitably qualified people is sought when this is felt necessary.

Investments are managed by engaging a firm of investment advisers who regularly report to the Trustees.

Plans for future periods

The General Assembly will meet in person in Perth in June 2025. Plans are progressing well for the 2025 “Gathering”, to be again held at Lendrick Muir.

UNITED FREE CHURCH OF SCOTLAND

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

Structure, governance and management

Governing Document

The governing document of the United Free Church of Scotland is the Manual of Practice and Procedures incorporating the decisions and acts of the Church’s General Assembly.

The General Assembly, the Supreme Court of the Church, is a representative body consisting of Ministers and Elders nominated by congregations and elected by Presbyteries. The Manual of Practice and Procedures sets out the respective authorities, responsibilities and duties of the Presbyteries and of the individual congregational Courts. Each congregation of the United Free Church has its own Constitution but is subject to the oversight and review of the Presbytery in which it resides and General Assembly. The United Free Church of Scotland is an unincorporated association.

The United Free Church of Scotland, with all the Churches of the Reformation, acknowledges as its Supreme Standard the Word of God contained in the Scriptures of the Old and New Testaments.

The Church holds as its Subordinate Standard the Westminster Confession of Faith by its Declaratory Acts (United Presbyterian Synod 1879, Free Church Assembly 1892), it recognises the liberty of judgement on points of doctrine which do not enter into the substance of the faith; and it claims the right, as duty may require, to interpret, add to, modify or change her Subordinate Standards, under the promised guidance of the Holy Spirit, and with a sense of direct responsibility to her Lord.

Appointment, Induction and Training of Trustees

The Trustees are appointed annually by the General Assembly. New Trustees are instructed and guided on their responsibilities and duties at the first meeting which they attend and as new matters arise during their term of office.

UNITED FREE CHURCH OF SCOTLAND

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

The General Trustees

The General Assembly appoints from time to time Ministers, Elders and/or Members of the Church to be 'ex officio' members of the Assembly and in such capacity to be 'The General Trustees of the United Free Church of Scotland'. At the present time, those so appointed are the Moderator of General Assembly, the Principal Clerks and the Convener and Vice Convener of the Governance Committee. The General Trustees are 'ex officio' members of all the Standing Committees of the General Assembly.

The General Trustees hold all property, heritable and movable, on behalf of the Church and of its Standing Committees and, when requested to do so, Funds belonging to individual Congregations of the Church ('Trust Funds') in the name of "The General Trustees of the United Free Church of Scotland". Such Congregational funds are not available to the United Free Church of Scotland and, in accordance with Recommended Practice, have been excluded from the Balance Sheet amounts for Investments and Creditors (see Note 16 and 19 of the financial statements).

The General Trustees report each year to the General Assembly on matters under their specific oversight and administration. The management, accounting and reporting of all the central funds of the Church including property, heritable and movable, and all matters pertaining to finance and compliance with relevant legislation, is the responsibility of the Governance Committee and is set out by that Committee as the 'Trustees' in these financial statements.

Organisational structure

The membership of Presbyteries and Standing Committees, and also the General Assembly, are Elders of the congregations who are nominated or appointed to the various offices and functions and who report back, as required, to their congregations and thus seek to be ‘at one’ in declaring the ‘good news of Jesus Christ the Son of the living God’ to their communities.

The ongoing direction and management of the Church is led by the Standing Committees as appointed by the General Assembly, namely:

The General Assembly annually appoints Standing Committees to implement its decisions and oversee and plan various aspects of the denomination’s ongoing work and witness and to report thereon to the next General Assembly. These reports, written and verbal, are presented to Assembly for discussion together with paragraphs of deliverance for Assembly decision on their work and their proposals for future activities and plans.

Key Management Personnel

During the year, the Trustees considered themselves, along with the newly appointed General Secretary, Mr. as comprising the Church’s key management personnel in charge of directing and controlling the

UNITED FREE CHURCH OF SCOTLAND

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

Statement of trustees' responsibilities

The trustees are responsible for preparing the Trustees' Report and the 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 church and of the incoming resources and application of resources of the church for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the church 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 (as amended) and the provisions of the trust deed. They are also responsible for safeguarding the assets of the church and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

The Trustees recommend that Alexander Sloan LLP remain in office until further notice.

The trustees' report was approved by the Board of Trustees.

Trustee Trustee

��������� Date: .............................................

UNITED FREE CHURCH OF SCOTLAND

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF UNITED FREE CHURCH OF SCOTLAND

Opinion

We have audited the financial statements of United Free Church of Scotland (the ‘church’) for the year ended 31 December 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the church 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 church’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 the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and 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 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 in relation to which the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:

UNITED FREE CHURCH OF SCOTLAND

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF UNITED FREE CHURCH OF SCOTLAND

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, 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 church’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 cease operations, or have no realistic alternative but to do so.

Auditor's 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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

Audit response to risks identified

To address the risk of fraud through management bias and override of controls, we:

UNITED FREE CHURCH OF SCOTLAND

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF UNITED FREE CHURCH OF SCOTLAND

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// 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.

��������� ......................... Accountants and Business Advisers Statutory Auditor 180 St Vincent Street Glasgow G2 5SG

Alexander Sloan LLP is eligible for appointment as auditor of the church by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

UNITED FREE CHURCH OF SCOTLAND

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2024

Current financial year
Unrestricted
Unrestricted
Restricted
funds
funds
funds
general
designated
2024
2024
2024
Notes
£
£
£
Income from:
Donations and legacies
3
767,288
-
10,773
Charitable activities
4
16,780
-
16,894
Investments
5
54,037
-
33,606
Other income
6
981,938
-
26,916
Total income
1,820,043
-
88,189
Expenditure on:
Investment managment costs
7
12,181
-
7,584
Charitable activities
8
483,944
25,161
42,544
Other - congregational
stipends
9
930,516
-
-
Total expenditure
1,426,641
25,161
50,128
Net gains/(losses) on
investments
13
123,736
-
77,526
Net income/(expenditure)
517,138
(25,161)
115,587
Transfers between funds
39,186
(49,284)
10,098
Other recognised gains and
losses:
Revaluation of tangible fixed
assets
-
96,500
-
Change in resources
attributable to pooled funds
16
-
-
(86,317)
Net movement in funds
10
556,324
22,055
39,368
Reconciliation of funds:
Fund balances at 1 January 2024
2,720,884
1,494,519
708,054
Fund balances at 31 December
2024
3,277,208
1,516,574
747,422		 Total
2024
£
778,061
33,674
87,643
1,008,854
1,908,232
19,765
551,649
930,516
1,501,930
201,262
607,564
-
96,500
(86,317)
617,747
4,923,457
5,541,204		 Total
2023
£
1,493,562
35,288
67,621
1,169,185
2,765,656
15,482
484,298
952,633
1,452,413
91,525
1,404,768
-
-
(65,500)
1,339,268
3,584,189
4,923,457

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 15 to 42 form an integral part of these financial statements.

UNITED FREE CHURCH OF SCOTLAND

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2024

Prior financial year
Unrestricted
Unrestricted
Restricted
funds
funds
funds
general
designated
2023
2023
2023
Notes
£
£
£
Income from:
Donations and legacies
3
1,483,197
-
10,365
Charitable activities
4
16,438
-
18,850
Investments
5
23,754
-
43,867
Other income
6
1,115,300
-
53,885
Total income
2,638,689
-
126,967
Expenditure on:
Investment managment costs
7
5,448
-
10,034
Charitable activities
8
385,540
31,758
67,000
Other - congregational stipends
9
952,633
-
-
Total expenditure
1,343,621
31,758
77,034
Net gains/(losses) on investments
13
41,833
-
49,692
Net income/(expenditure)
1,336,901
(31,758)
99,625
Transfers between funds
253,032
(253,032)
-
Other recognised gains and losses:
Change in resources attributable to pooled
funds
16
-
-
(65,500)
Net movement in funds
10
1,589,933
(284,790)
34,125
Reconciliation of funds:
Fund balances at 1 January 2023
1,130,951
1,779,309
673,929
Fund balances at 31 December 2023
2,720,884
1,494,519
708,054		 Total
2023
£
1,493,562
35,288
67,621
1,169,185
2,765,656
15,482
484,298
952,633
1,452,413
91,525
1,404,768
-
(65,500)
1,339,268
3,584,189
4,923,457

The notes on pages 15 to 42 form an integral part of these financial statements.

UNITED FREE CHURCH OF SCOTLAND

BALANCE SHEET

AS AT 31 DECEMBER 2024

2024 2023
Notes £ £ £ £
Fixed assets
Tangible assets 15 1,901,534 1,936,783
Investments 16 3,862,622 2,893,482
Social investments 30 249,067 262,817
6,013,223 5,093,082
Current assets
Properties held for sale 17 400,000 250,000
Debtors 18 161,177 581,346
Cash at bank and in hand 504,930 470,900
1,066,107 1,302,246
Creditors: amounts falling due within 19
one year (1,538,126) (1,471,871)
Net current liabilities (472,019) (169,625)
Total assets less current liabilities 5,541,204 4,923,457
The funds of the church
Restricted income funds 23 747,422 708,054
Unrestricted funds - general 24 3,277,208 2,720,884
Unrestricted funds - designated 22 1,516,574 1,494,519
5,541,204 4,923,457

��������� The financial statements were approved by the trustees on .........................

Trustee Trustee

UNITED FREE CHURCH OF SCOTLAND

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2024

2024
Notes
£
£
Cash flows from operating activities
Cash generated from operations
28
529,364
Investing activities
Purchase of tangible fixed assets
-
Proceeds from disposal of tangible fixed
assets
184,901
Purchase of investments
(1,128,836)
Proceeds from disposal of investments
360,958
Investment income received
87,643
Net cash (used in)/generated from
investing activities
(495,334)
Net cash used in financing activities
-
Net increase in cash and cash equivalents
34,030
Cash and cash equivalents at beginning of year
470,900
Cash and cash equivalents at end of year
504,930		 2023
£
£
59,713
(401,000)
435,400
(436,898)
401,317
67,621
66,440
-
126,153
344,747
470,900		 2023
£
£
59,713
(401,000)
435,400
(436,898)
401,317
67,621
66,440
-
126,153
344,747
470,900
126,153
344,747
470,900

UNITED FREE CHURCH OF SCOTLAND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

1 Accounting policies

Charity information

United Free Church of Scotland is a registered Scottish Charity (No. SC008167). The charity’s principal address is

1.1 Accounting convention

The financial statements have been prepared in accordance with the church's governing document, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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)" (effective 1 January 2019). The church is a Public Benefit Entity as defined by FRS 102.

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

The 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 financial statements. The principal accounting policies adopted are set out below.

1.2 Going concern

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

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern and the financial statements have been prepared on a going concern basis.

1.3 Charitable funds

Funds are classified as either Restricted Funds or Unrestricted Funds, defined as follows.

Unrestricted funds comprise income received for the objects of the charity without further specified purpose and are available as general funds.

Designated Funds represent unrestricted funds which have been earmarked by the Trustees for particular purposes.

Restricted funds comprise income which has been received for the objects of the charity and specified for a restricted purpose, within these objects, by the donor.

1.4 Income

Income is recognised when the church is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Donations and legacies

Donations are recognised when the charity has evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably. Entitlement usually arises immediately upon receipt, however, 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.

Properties which are donated (gifted) to the charity are measured at their fair value unless it is impractical to measure their fair value reliably.

UNITED FREE CHURCH OF SCOTLAND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

1 Accounting policies

(Continued)

Legacy gifts must be recognised when it is probable that it will be received. This is normally following the granting confirmation, when the administrator/executor of the estate has communicated in writing both the amount and settlement date and any conditions attached to the legacy are either within the control of the charity or have been met. 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.

Income from Charitable Activities

Income from charitable activities includes income earned both from the supply of goods or services. Such income is recognised or earned as the related goods or services are provided.

Investment income

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 when the shareholder’s right to receive payment is established, measured at the fair value receivable. Generally, this is upon notification by the investment advisor once the dividend has been declared.

Other income

Other income represents income that cannot be reported under the other analysis headings provided within the Statement of Financial Activities and is recognised when the charity is entitled to the income, it is probable that it will be received and the amount can be measured reliably by the charity.

1.5 Expenditure

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.

Liabilities are measured on recognition at historical cost and then subsequently measured at the best estimate of the amount required to settle the obligation at the reporting date. The exception is that certain financial instruments must be adjusted to their present value; these include financial liabilities where settlement is deferred for more than 12 months after the reporting date.

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.

Raising funds

Expenditure on raising funds represents all expenditure incurred by a charity to raise funds for its charitable purposes and includes investment management costs.

Expenditure on Charitable activities

Expenditure on charitable activities includes all costs incurred by the charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities. The costs of charitable activities presented in the Statement of Financial Activities includes the costs of both direct service provision and the payments of grant awards if applicable.

UNITED FREE CHURCH OF SCOTLAND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

1 Accounting policies

(Continued)

Grant expenditure

Grants payable are made to third parties in the furtherance of the charitable objects. The award of a grant is recognised as a liability only when the criteria for a constructive obligation are met, payment is probable, it can be measured reliably and there are no conditions attaching to its payment that limit recognition.

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. Grant 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

Other expenditure

Other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities and is recognised when it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Governance costs

Governance costs (which are included as a component of support costs in accordance with SORP) comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include those related to constitutional and statutory requirements, external scrutiny (audit or independent examination), strategic management, and other legal and professional fees.

Activity based reporting

To comply fully with the Statement of Recommended Practice would require income and expenditure to be reported by activity. The Trustees are of the opinion that the Church has a single activity, namely the advancement of Christ’s Kingdom throughout the world, such that there would be no merit or additional benefit to the users of the financial statements in providing further analysis of income and expenditure within the financial statements.

Irrecoverable VAT

Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

1.6 Tangible fixed assets

Fixed assets (excluding the charity’s office building) are stated at cost less accumulated depreciation. The Trustees have adopted a revaluation policy for the office building, which is stated at revaluation less accumulated depreciation.

Depreciation is provided on fixed assets at rates calculated to write off the cost (or valuation), less estimated residual value evenly over its expected life.

During the year ended 31 December 2012, the Trustees reviewed their property portfolio and considered that the properties had a remaining useful life of at least 50 years at 31 December 2012. Since the estimated useful lives are significant, impairment reviews will be undertaken annually.

Depreciation is calculated as follows:

Office building 100 years straight line Equipment 25% straight line Retirement Homes 50 years straight line from 2012 (previously no depreciation) Churches 50 years straight line from 2012 (previously over 100 years from 2008) Manses 50 years straight line from 2012 (previously no depreciation)

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

UNITED FREE CHURCH OF SCOTLAND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

1 Accounting policies

(Continued)

1.7 Fixed asset investments

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 value. The Statement of Financial Activities includes the net gains and losses (realised and unrealised) arising on revaluation and disposals throughout the year. Fair value is deemed to be market value.

1.8 Impairment of fixed assets

At each reporting end date, the church reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.9 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

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.

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 payments 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 church’s contractual obligations expire or are discharged or cancelled.

1.10 Taxation

The Church is recognised as a charity for the purposes of applicable taxation legislation and is therefore not subject to taxation on its charitable activities. The charity is not registered for VAT and expenditure therefore includes irrecoverable input VAT.

UNITED FREE CHURCH OF SCOTLAND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

1 Accounting policies

(Continued)

1.11 Employee benefits

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 church is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Retirement benefits

The charity operates a group personal pension plan (defined contribution). The contributions to the scheme are charged to the Statement of Financial Activities in the year they become payable.

1.13 Social Investments

Social investments include concessionary loans repayable in more than one year which are initially measured at the amount paid, with the carrying amount adjusted in subsequent years to reflect the repayments and any accrued interest and adjusted if necessary for any impairment.

Social investments which see the charity invest in property are valued at amortised cost, although the Trustees have assessed that the residual value of the asset is greater than the cost, hence a depreciation charge of Nil has arisen to date.

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. Key estimates applied in the period are as follows:

Estimated value for the receipt of donated assets

Donated assets are measured at their fair value unless it is impractical to measure the fair value reliably. Fair values of properties acquired on dissolution of congregations (connected charities) are estimated based on advice which is taken by the Trustees from professional surveyors and legal advisors at the date of transfer.

Two properties were acquired during the year as a result of dissolutions Valuation options for these properties were as follows:

Kilmaurs

  1. Market Value of the entire subjects assuming planning permission for

residential redevelopment (in whole or part) - £400,000.

  1. Market Value of the entire subjects with the Special Assumption of a 6-

month sale period - £350,000.

  1. Market Value with the Special Assumption of a sale of the main church and hall for existing use and a sale of the former manse separately - £325,000.

Stonehouse

  1. Market Value subject to planning permission for alternative use - £100,000.

  2. Market Value subject to a restricted sale period of 6 months - £75,000.

  3. Market Value subject to a sale for the existing church use - £75,000.

The charity has applied option 3 to both properties, as these represent the status of the properties at the year end.

UNITED FREE CHURCH OF SCOTLAND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

2 Critical accounting estimates and judgements

(Continued)

Property sales

Where properties are sold at auction, the disposal date is taken to be the date of the auction at which the properties are sold, this being where a binding sales contract exists rather than the date of entry.

3 Income from donations and legacies

Unrestricted
Restricted
funds
funds
2024
2024
£
£
Donations and gifts
767,288
10,773
Legacies
-
-
767,288
10,773
Donations and gifts
Target Contributions
191,729
3,913
Congregations
1,100
1,680
Offerings
-
3,063
Missions
6,105
-
Dissolutions
653,285
-
Other
(84,931)
2,117
767,288
10,773		 Total
Unrestricted
Restricted
funds
funds
2024
2023
2023
£
£
£
778,061
1,303,197
10,365
-
180,000
-
778,061
1,483,197
10,365
195,642
183,081
3,736
2,780
150
1,587
3,063
-
3,332
6,105
4,403
550
653,285
1,101,183
-
(82,814)
14,380
1,160
778,061
1,303,197
10,365		 Total
2023
£
1,313,562
180,000
1,493,562
186,817
1,737
3,332
4,953
1,101,183
15,540
1,313,562

4 Income from charitable activities

Unrestricted
Restricted
funds
funds
2024
2024
£
£
Charitable activites
income
16,780
16,894
Charitable activities income analysis
Camps and conferences
5,602
-
Property income
2,050
13,833
Publications
6,970
3,061
Other income
2,158
-
16,780
16,894		 Total
Unrestricted
Restricted
funds
funds
2024
2023
2023
£
£
£
33,674
16,438
18,850
5,602
6,013
-
15,883
3,340
14,500
10,031
7,085
4,290
2,158
-
60
33,674
16,438
18,850		 Total
2023
£
35,288
6,013
17,840
11,375
60
35,288

UNITED FREE CHURCH OF SCOTLAND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

5 Income from investments

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2024 2024 2024 2023 2023 2023
£ £ £ £ £ £
Dividends 54,037 33,606 87,643 23,754 43,867 67,621

6 Other income

Unrestricted
Restricted
funds
funds
2024
2024
£
£
Gain on sale of property
59,417
26,916
Stipends from
congregations
922,521
-
981,938
26,916		 Total
Unrestricted
Restricted
funds
funds
2024
2023
2023
£
£
£
86,333
169,468
53,885
922,521
945,832
-
1,008,854
1,115,300
53,885		 Total
2023
£
223,353
945,832
1,169,185

The United Free Church of Scotland administers the payroll of Ministers on behalf of congregations. Congregational stipends represent payments by congregations to the Church in relation to the salary costs of their respective Ministers.

7 Expenditure on investment management

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2024 2024 2024 2023 2023 2023
£ £ £ £ £ £
Investment management 12,181 7,584 19,765 5,448 10,034 15,482

UNITED FREE CHURCH OF SCOTLAND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

8 Expenditure on charitable activities

Direct costs
Staff costs
Depreciation and impairment
Property costs
Office costs
Governance costs
Subscriptions and recurring donations
Publication costs
Training & education
Denominational costs
Donations
Analysis by fund
Unrestricted funds - general
Unrestricted funds - designated
Restricted funds		 2024
£
160,613
33,181
77,781
53,073
17,892
6,488
16,141
24,584
141,990
19,906
551,649
483,944
25,161
42,544
551,649		 2023
£
157,173
41,601
66,315
52,365
6,780
8,469
21,214
28,104
81,617
20,660
484,298
385,540
31,758
67,000
484,298

9 Other - congregational stipends

Unrestricted Unrestricted
funds funds
2024 2023
£ £
Congregational stipends 930,516 952,633

Congregational stipends represents the salary costs of Ministers which are administered by the United Free Church of Scotland. Income received from congregations to cover these salary costs is shown in Note 6 to the financial statements.

10 Net movement in funds 2024 2023
£ £
The net movement in funds is stated after charging/(crediting):
Fees payable for the audit of the charity's financial statements 17,892 6,780
Depreciation of owned tangible fixed assets 33,181 41,601
Profit on disposal of tangible fixed assets (86,333) (223,353)

UNITED FREE CHURCH OF SCOTLAND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

11 Trustees

2024 2023
£ £
Honoraria paid in 2024
In 2024, paid to three Trustees. In 2023, paid to two Trustees. 3,824 3,697
Four Trustees were reimbursed expenses totalling. In 2023,
paid to five Trustees 207 268
Transfers to congregations 7,644 4,854

The transfers to congregations were paid to the churches of the Principal Clerks in recognition of their release to undertake services on behalf of the charity.

No Trustee made any direct donations to the charity during the year.

Where Trustees are serving Ministers in congregations, then the value of stipends paid by the congregations for such duties have been excluded from this Note.

12 Employees

The average monthly number of employees during the year was:

Ministers/Pastors
Management & other
Total
Employment costs
Wages and stipends
Social security costs
Other pension costs		 2024
Number
36
3
39
2024
£
950,690
76,921
63,518
1,091,129		 2023
Number
38
3
41
2023
£
962,998
76,497
70,311
1,109,806

Pastors are appointed by the Ministry Committee who report to the General Assembly. For completeness, the statistics above include Ministers although they are "office holders" and not employees.

There were no employees whose annual remuneration was more than £60,000.

Remuneration of key management personnel

The remuneration of key management personnel was as follows:

2024 2023
£ £
Aggregate compensation 41,700 23,917

UNITED FREE CHURCH OF SCOTLAND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

12 Employees

(Continued)

The Key Management personnel are indicated on page 6.

Two members of key personnel are also serving minsters and their remuneration as individual serving is not included in the key management remuneration balance above.

13 Gains and losses on investments

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2024 2024 2024 2023 2023 2023
Gains/(losses) arising on: £ £ £ £ £ £
Revaluation of
investments 123,736 77,526 201,262 41,833 49,692 91,525

14 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

15 Tangible fixed assets

Office building
£
Cost
At 1 January 2024
530,000
Additions
-
Disposals
-
Revaluation
70,000
Transfer to held for sale
-
At 31 December 2024
600,000
Depreciation and
impairment
At 1 January 2024
26,500
Depreciation charged in the
year
-
Eliminated in respect of
disposals
-
Revaluation
(26,500)
At 31 December 2024
-
Carrying amount
At 31 December 2024
600,000
At 31 December 2023
503,500		 Equipment
£
13,915
-
(7,028)
-
-
6,887
13,915
-
(7,028)
-
6,887
-
-		 Retirement
Homes
£
872,316
-
(129,695)
-
-
742,621
104,337
14,852
(31,127)
-
88,062
654,559
767,979		 Churches
£
456,345
400,000
-
-
(400,000)
456,345
192,811
9,127
-
-
201,938
254,407
263,534		 Manses
£
460,106
-
-
-
-
460,106
58,336
9,202
-
-
67,538
392,568
401,770		 Total
£
2,332,682
400,000
(136,723)
70,000
(400,000)
2,265,959
395,899
33,181
(38,155)
(26,500)
364,425
1,901,534
1,936,783

UNITED FREE CHURCH OF SCOTLAND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

15 Tangible fixed assets

(Continued)

Office building
Retirement
Homes
Churches
£
£
£
Cost/Valuations comprise the following:
Office Premises
11 Newton Place (Historic
Cost £18,962)
600,000
-
-
Churches
-
-
Northfield Church
-
-
7,620
Darnley Church
-
-
76,120
Dalreoch Church
-
-
220,605
Darnley Church Hall
-
-
152,000
Manses
Darnley
-
-
-
Carnoustie
-
-
-
St Andrews
-
-
-
Retirement Homes
Springfield Gardens, Tain
-
61,662
-
Ayr Road, Prestwick
-
152,038
-
Old Dalmuir Path,
Auchendinny
-
127,921
-
Wester Inches Park
-
210,000
-
Arran View, Mauchline
-
191,000
-
600,000
742,621
456,345		 Manses
£
-
-
-
-
-
50,721
261,385
148,000
-
-
-
-
-
460,106

Retirement homes and manses are included at historic cost. The Trustees are of the opinion that, whilst the residual value of these properties is likely to still exceed cost, it is prudent to provide against impairment at a rate of 2% per annum.

Churches are included at cost and depreciation has been provided at 2% per annum.

The Church Offices were independently valued as at 31 December 2024 on an open market basis by David Allison FRICS on 25 February 2025.

UNITED FREE CHURCH OF SCOTLAND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

16 Fixed asset investments

Listed
investments
£
Cost or valuation
At 1 January 2024
2,893,482
Additions
1,128,836
Valuation changes
201,217
Cash movements
(25,035)
Disposals
(335,878)
At 31 December 2024
3,862,622
Impairment
At 1 January 2024
-
At 31 December 2024
-
Carrying amount
At 31 December 2024
3,862,622
At 31 December 2023
2,893,482
2024
Market value
£
Industrial Shares and Debentures (UK)
3,072,078
Government Securities (UK)
571,925
Cash Deposits (UK)
15,599
Bank and Insurance Company Shares (UK)
203,020
3,862,622
Relating to United Free Church of Scotland
2,351,793
Relating to Third Parties (connected charities, detailed below)
1,510,829
3,862,622		 Total
£
2,893,482
1,128,836
201,217
(25,035)
(335,878)
3,862,622
-
-
3,862,622
2,893,482
2023
£
2,299,124
360,469
40,634
193,255
2,893,482
1,450,706
1,442,776
2,893,482

Fixed asset investments
(Continued)		 Pooled investment funds - Share due to third parties (connected charities) Funds pooled for third parties comprise funds advanced by congregations, Presbyteries and other bodies within the United Free Church of Scotland which the General Trustees have agreed to invest and manage on their behalf. These are detailed below. Realised and
Net Assets		 Fund Type
Net Assets
Investment
Unrealised
carried		 brought fwd
Additions to
Investment
Management Investmetn
forward		 1.1.2024
Asset Pool
Income
Expenses
Gains
Distributions31.12.2024		 Brown Memorial
Restricted
1,639
-
33
(7)
75
(48)
1,692		 Wallace & Isabella Ower
Restricted
724
-
14
(3)
33
(21)
747		 Carnoustie Church
Restricted
2,085
-
42
(9)
96
-
2,214		 Largs Manse
Restricted
23,115
-
464
(105)
1,060
-
24,534		 Dounby Fund
Restricted
48,891
-
982
(221)
2,242
-
51,894		 Presbytery of Glasgow & West
Restricted
948
-
19
(4)
43
-
1,006		 Presbytery of the North (Shetland)
Restricted
1,742
-
35
(8)
80
-
1,849		 Prayer Union
Restricted
(3,322)
3,528
-
-
-
-
206		 Leith Ebenezer Investment Account
Restricted
72,391
-
1,126
(258)
2,757
(20,983)
55,033		 E S Martin Annuity Fund - Balbeggie
Restricted
526
-
11
(2)
24
(15)
544		 Murray Trust - Balbeggie
Restricted
1,129
-
23
(5)
52
(33)
1,166		 Presbytery of the North (Westray)
Restricted
63,865
-
1,273
(287)
2,915
(1,000)
66,766		 Bannockburn investment account
Restricted
153,941
-
3,093
(697)
7,060
-
163,397		 Bo'ness investment account (Craigmailen)
Restricted
51,583
-
889
(201)
2,132
(16,000)
38,403		 Torry investment account
Restricted
76,678
-
1,218
(278)
2,964
(20,000)
60,582		 Dundee investment account
Restricted
53,424
-
872
(196)
2,178
(20,000)
36,278		 Balintore investment account
Restricted
65,879
-
1,324
(298)
3,021
-
69,926		 Broxburn investment account
Restricted
162,253
-
3,190
(718)
7,346
(7,000)
165,071		 Northfield investment account
Restricted
97,687
-
1,812
(408)
4,276
(15,000)
88,367		 Menstrie investment account
Restricted
139,292
10,000
2,767
(624)
6,352
(7,500)
150,287		 Millerston investment account
Restricted
6,871
93,000
425
(100)
869
-
101,065		 Shieldhall investment account
Restricted
4,018
-
81
(18)
184
-
4,265		 Darnley investment account
Restricted
2,556
-
51
(12)
117
-
2,712		 Kilmaurs investment account
Restricted
52
-
1
-
3
(56)
-
16

(Continued) 3,008 383,729 32,772 3,317 1,510,830
- (16,000) - (2,000) (125,656)
130 17,086 1,416 179 64,690
(13) (1,673) (140) (17) (6,302)
57 7,433 620 75 27,930
- - - 864 107,392
2,834 376,883 30,876 4,216 1,442,776
Restricted Restricted Restricted Restricted
Fixed asset investments Candlish Wynd investment account Candlish Wynd Manse Fund Burntisland investment account Presbytery of the East
16

UNITED FREE CHURCH OF SCOTLAND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

17 Properties held for sale

Properties held for sale
Properties held for sale
Properties held for sale
Churches transferred from Fixed Assets to Current Assets
Stonehouse
Kilmaurs
Ayr
Alloa, Moncreiff		 2024
£
400,000
2024
£
75,000
325,000
-
-
400,000		 2023
£
250,000
2023
£
-
-
175,000
75,000
250,000

No cash was paid for these properties, rather they were inherited through the dissolution of local churches. External valuations were completed to arrive at the values to be incorporated within the accounts, with further details on the basis for estimated values provided in note 2. They are treated as current rather than fixed assets as it is the Trustees intention to market for sale.

18 Debtors

Debtors
Amounts falling due within one year:
Other debtors
Prepayments and accrued income		 2024
£
156,278
4,899
161,177		 2023
£
576,930
4,416
581,346

19 Creditors: amounts falling due within one year

Notes
Deferred income
20
Funds held for third parties
Accruals		 2024
£
10,000
1,510,830
17,296
1,538,126		 2023
£
10,000
1,442,776
19,095
1,471,871

As detailed in note 16 United Free Church of Scotland has pooled investments with connected charities.

The amounts 'Funds held for Third Parties' above represents the share of pooled assets due to connected charities at the year end date.

These show in current liabilities in the Balance Sheet as they may be accessed by the connected charity upon written request.

Investments (fixed assets) may be realised to distribute these funds, hence the large current liability does not pose a concern to the solvency of the charity.

UNITED FREE CHURCH OF SCOTLAND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

20 Deferred income
2024 2023
£ £
Other deferred income 10,000 10,000
Deferred income is included in the financial statements as follows:
2024 2023
£ £
Deferred income is included within:
Current liabilities 10,000 10,000
Deferred Income brought forward and carried forward relates to a donation received from an 'anonymous'
donor towards the stipend of a current ministry assistant once he becomes a minister. This happened at the
end of 2024, and as such it has been deferred at 31 December 2024 for release in 2025.
21 Retirement benefit schemes
2024 2023
Defined contribution schemes £ £
Charge to profit or loss in respect of defined contribution schemes 63,518 70,311

Deferred Income brought forward and carried forward relates to a donation received from an 'anonymous' donor towards the stipend of a current ministry assistant once he becomes a minister. This happened at the end of 2024, and as such it has been deferred at 31 December 2024 for release in 2025.

The church operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the church in an independently administered fund.

UNITED FREE CHURCH OF SCOTLAND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

22 Unrestricted funds - designated

These are the designated funds which have been set aside out of unrestricted funds by the Trustees for specific purposes:

At
By General purposes
By Ministry
By General Trustees
Previous year:
At
By General purposes
By Ministry
By General Trustees		 1 January
2024
Resources
expended
£
£
503,500
-
683,085
(10,141)
307,934
(15,020)
1,494,519
(25,161)
1 January
2023
Resources
expended
£
£
508,800
(5,300)
380,826
(10,141)
889,683
(16,317)
1,779,309
(31,758)		 Transfers
Gains and
losses
At 31
December
2024
£
£
£
-
96,500
600,000
-
-
672,944
(49,284)
-
243,630
(49,284)
96,500
1,516,574
Transfers
Gains and
losses
At 31
December
2023
£
£
£
-
-
503,500
312,400
-
683,085
(565,432)
-
307,934
(253,032)
-
1,494,519		 Transfers
Gains and
losses
At 31
December
2024
£
£
£
-
96,500
600,000
-
-
672,944
(49,284)
-
243,630
(49,284)
96,500
1,516,574
Transfers
Gains and
losses
At 31
December
2023
£
£
£
-
-
503,500
312,400
-
683,085
(565,432)
-
307,934
(253,032)
-
1,494,519
1,494,519

Designated Property Fund : Represents the net book value of the Church's properties held within Unrestricted Funds.

Restricted funds The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used. At 1 January
Incoming
Resources
Change in
Transfers
Gains and
At 31		 2024
resources
expended
resources re
losses
December		 pooled funds
2024		 £
£
£
£
£
£
£		 Special Aid
60,242
42,311
(14,394)
-
49,284
3,441
140,884		 Student Book
2,033
41
(9)
-
-
93
2,158		 Student Grant - Bursary
62,817
1,262
(384)
-
-
2,879
66,574		 Werdmuller Trust
14,241
286
(64)
-
-
653
15,116		 Scots Church History
19,500
375
(3,664)
-
-
862
17,073		 Presbytery of North congregations
13,621
258
(1,058)
-
-
597
13,418		 Dalreoch Manse Fund
33,421
671
(151)
-
-
1,532
35,473		 Overseas
4,739
7,246
(8,102)
-
10,198
255
14,336		 General Trustees - Other Funds
46,821
944
(211)
-
-
2,148
49,702		 Women's Home & Overseas Committee
8,355
6,864
(7,768)
-
(100)
377
7,728		 Special Aid - Property
442,264
-
(8,020)
-
(49,284)
-
384,960		 Pooled Funds - Investments
-
27,931
(6,303)
(86,317)
-
64,689
-		 708,054
88,189
(50,128)
86,317
10,098
77,526
747,422		 - 32 -
23

(Continued) At 31 December 2023 £ 60,245 2,033 62,817 14,241 19,500 13,621 33,421 4,739 46,820 8,355 442,262 - 708,054
Gains and losses £ 5,545 47 1,444 328 536 313 768 127 1,075 257 - 39,252 49,692
Transfers £ (274,885) - - - - - - - - - 274,885 - -
Change in resources re pooled funds - - - - - - - - - - - (65,500) 65,500
Resources expended £ (35,136) (9) (276) (63) (3,956) (60) (147) (14,778) (206) (5,283) (9,318) (7,802) (77,034)
Incoming resources £ 74,061 39 1,209 274 449 262 643 10,245 900 4,835 - 34,050 126,967
At 1 January 2023 £ 290,660 1,956 60,440 13,702 22,471 13,106 32,157 9,145 45,051 8,546 176,695 - 673,929
Restricted funds Previous year: Special Aid Student Book Student Grant - Bursary Werdmuller Trust Scots Church History Presbytery of North congregations Dalreoch Manse Fund Overseas General Trustees - Other Funds Women's Home & Overseas Committee Special Aid Pooled Funds
23

UNITED FREE CHURCH OF SCOTLAND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

23 Restricted funds

(Continued)

Admin & Finance:

Special Aid : To give support to retired Ministers and widows.

Ministry:

Student Book: To give recognised students grants to assist with the purchase of books. Student Grant - Bursary : To give support to those who are training for the ministry with United Free Church of Scotland.

Werdmuller Trust : To provide grants to those who have performed well as students, given at the end of their course.

Scots Church History : To encourage interest in Scots Church history among students and others. Presbytery of North congregations : to support ministry in the congregations within this Presbytery. Dalreoch Manse Fund : Receives rental income and reimburses the congregation for expenses. This reflects the denomination's contribution to the manse refurbishment in the past.

Overseas : To develop links and encourage support for missionaries and mission work worldwide.

General Trustees - other Funds: The Prof. Allan Barr Fund provides support for congregations in the East Presbytery.

Women's Home and Overseas Committee : To support work identified by the Women's Committee in Scotland and overseas.

24 Unrestricted funds

These are the unrestricted funds to the charity

At
General
Purpose
Church and
Manse building
Ministry
Remuneration
Reshaping
Mission
National Church
Events
Youth
Church and
Society
Ecumenical
Relations
General
Trustees		 1 January
2024

£
23,836
37,108
3,925
2,131
111,169
934
9,750
4,484
10,173
2,517,374
2,720,884		 Incoming
resources
Resources
expended
£
£
88,955
(175,466)
746
(5,168)
6,817
(9,189)
1,018,101
(1,014,252)
22,209
(20,118)
5,545
(10,716)
7,379
(13,188)
5,982
(3,510)
204
(46)
664,105
(174,988)
1,820,043
(1,426,641)		 Transfers
Gains and
losses
At 31
December
2024
£
£
£
100,100
492
37,917
60,000
1,701
94,387
(198)
130
1,485
-
37
6,017
70,000
5,871
189,131
5,000
16
779
-
378
4,319
-
206
7,162
-
466
10,797
(195,716)
114,439
2,925,214
39,186
123,736
3,277,208		 Transfers
Gains and
losses
At 31
December
2024
£
£
£
100,100
492
37,917
60,000
1,701
94,387
(198)
130
1,485
-
37
6,017
70,000
5,871
189,131
5,000
16
779
-
378
4,319
-
206
7,162
-
466
10,797
(195,716)
114,439
2,925,214
39,186
123,736
3,277,208
3,277,208

UNITED FREE CHURCH OF SCOTLAND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

24 Unrestricted funds

Unrestricted funds
Previous year:
At
General
Purpose
Church and
Manse building
Ministry
Remuneration
Reshaping
Mission
Church plant
National Church
Events
Youth
Christian
Education and
Evangelism
Church and
Society
General funds		 1 January
2023

£
23,871
35,705
6,513
4,129
124,661
(38,791)
3,615
9,682
735
3,650
957,181
1,130,951		 Incoming
resources
Resources
expended
£
£
87,034
(147,284)
714
(163)
(59,181)
(12,007)
1,037,332
(1,049,397)
16,278
(42,286)
-
(1,405)
4,443
(7,696)
7,716
(7,900)
2
(292)
4,754
(4,019)
1,539,597
(71,172)
2,638,689
(1,343,621)		 (Continued)
Transfers
Gains and
losses
At 31
December
2023
£
£
£
60,000
215
23,836
-
852
37,108
68,600
-
3,925
10,000
67
2,131
10,000
2,516
111,169
-
40,196
-
457
115
934
-
252
9,750
(457)
12
-
-
99
4,484
104,432
(2,491)
2,527,547
253,032
41,833
2,720,884		 (Continued)
Transfers
Gains and
losses
At 31
December
2023
£
£
£
60,000
215
23,836
-
852
37,108
68,600
-
3,925
10,000
67
2,131
10,000
2,516
111,169
-
40,196
-
457
115
934
-
252
9,750
(457)
12
-
-
99
4,484
104,432
(2,491)
2,527,547
253,032
41,833
2,720,884
2,720,884

Admin & Finance:

General Purpose : To cover the Church's administration costs including arrangements for the General Assembly and the overseeing of finance.

Church and Manse building : To provide support for congregations undertaking repairs to buildings.

Ministry : For the support of Ministers and Pastors.

Youth : To cover the costs of camps and other events for young people, in addition to the employment costs of a youth worker.

Christian Education & Evangelism : To encourage congregational development and provide suitable training, and to support and promote evangelism in congregations.

Church and Society : To fund costs related to commenting on developments in society and provide support for agencies involved in work in this field.

Ecumenical Relations : To enable the development of links with other Churches and ecumenical agencies and encourage local co-operation.

General Trustees : To take responsibility for property belonging to the denomination and oversee as required.

UNITED FREE CHURCH OF SCOTLAND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

25 Fund Transfers

Fund transfers during the year ended 31 December 2024

Ref Unrestricted Unrestricted
Unrestricted Designated Restricted
Funds Funds Funds Total
£ £ £ £
Narrative
From General Trustees Fund to undernoted (1)
Funds (245,000) - - (245,000)
From General Trustees to Overseas (1) 10,000 10,000
From General Trustees to Reshaping Mission (1) 70,000 70,000
From General Trustees to General Purpose (1) 100,000 100,000
From General Trustees to Church & Manse (1)
Building Fund 60,000 60,000
From General Trustees to National Church (1)
Events 5,000 5,000
From WHO to General Purposes (2) 100 (100) -
From ministry to Overseas (3) (198) 198 -
Arising on disposal of property (4) (49,284) (49,284)
Arising on disposal of property (4) 49,284 49,284
Arising on disposal of property (4) 49,284 49,284
Arising on disposal of property (4) (49,284) (49,284)
39,186 (49,284) 10,098 -
Fund Transfers during the year ended 31 December 2023
From General Trustees Fund to undernoted (1)
Funds (120,196) (120,196)
From General Trustees to Reshaping mission (1) 10,000 10,000
From General Trustees to Church Plant (1) 40,196 40,196
From General Trustees to General Purpose (1) 60,000 60,000
From General Trustees to Remuneration (1) 10,000 10,000
From CEE to National Church Events (2) 457 457
From CEE to National Church Events (2) (457) (457)
Transfer re addition of properties (3) 274,885 274,885
Transfer re addition of properties (3) (274,885) (274,885)
Arising on disposal of property (4) 68,600 68,600
Arising on disposal of property (4) (68,600) (68,600)
Arising on disposal of property (4) 184,432 184,432
Arising on disposal of property (4) (184,432) (184,432)
Transfer re addition of properties (5) 381,000 381,000
Transfer re addition of properties (5) (381,000) (381,000)
Arising on disposal of property (6) 381,000 381,000
Arising on disposal of property (6) (381,000) (381,000)
253,032 (253,032) - -

(1) Transfer to various Funds to meet shortfalls

(2) Transfer to move funds allocated

(3) Transfer re calendars gifted

(3) Transfer re addition of properties

UNITED FREE CHURCH OF SCOTLAND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

25 Fund Transfers

(Continued)

(5) Transfer re addition of properties

26 Analysis of net assets between funds

Unrestricted
Unrestricted
Restricted
funds
funds
funds
general
designated
2024
2024
2024
£
£
£
At 31 December 2024:
Tangible assets
-
1,516,574
384,960
Investments
2,351,792
-
1,510,830
Programme related assets
249,067
-
-
Current assets/(liabilities)
676,349
-
(1,148,368)
3,277,208
1,516,574
747,422
Unrestricted
Unrestricted
Restricted
funds
funds
funds
general
designated
2023
2023
2023
£
£
£
At 31 December 2023:
Tangible assets
-
1,494,519
442,264
Investments
1,007,673
-
1,885,809
Programme related assets
262,817
-
-
Current assets/(liabilities)
1,450,394
-
(1,620,019)
2,720,884
1,494,519
708,054		 Total
2024
£
1,901,534
3,862,622
249,067
(472,019)
5,541,204
Total
2023
£
1,936,783
2,893,482
262,817
(169,625)
4,923,457

27 Related party transactions

There were no disclosable related party transactions during the year (2023 - none).

UNITED FREE CHURCH OF SCOTLAND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

28
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Gain on disposal of tangible fixed assets
Properties acquired through dissolution - gifts in kind
Transfers to GT from third party funds (investments) - gifts in kind
Fair value gains and losses on investments
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase)/decrease in social investments
Decrease/(increase) in debtors
Increase in creditors
Cash generated from operations
29
Analysis of changes in net funds
The church had no material debt during the year.		 2024
£
617,747
(87,643)
(86,333)
(400,000)
-
(200,992)
33,181
13,750
573,399
66,255
529,364		 2023
£
1,339,268
(67,621)
(223,353)
(631,000)
(343,010)
(98,293)
41,601
51,767
(22,217)
12,571
59,713

Total Social Investments £ 262,817 (13,750) 249,067
Other Concessionary Loans £ 33,000 (13,750) 19,250
Social Investments in other properties £ 83,724 - 83,724
Social Investments In Church Buildings of Connected Charties £ 146,093 - 146,093
At 31 December 2024
Social investments At 1 January 2024 Repayments
30

Social investments
(Continued)		 (a) Social Investment in Church Buildings - Other Congregations (Connected Charities) (a) Social Investment in Church Buildings - Other Congregations (Connected Charities) The Trustees of United Free Church of Scotland advanced funds to connected registered Scottish Charities by way of social investment in Church Manses and buildings detailed below. These are recognised and measured at the amount advanced [adjusted only where there is any any addition or reduction in the percentage share via a further advance by the General Trustees or repayment by the Congregation. In accordance with the Minute of Agreement between the parties, United Free Church of Scotland is entitled to repayment of the investment based on % held x the 'Final Market Value' of the Property. This becomes due at particular trigger points, with the primary of those being sale of the Manse/property by the Congregation. This becomes due at particular trigger points, with the primary of those being sale of the Manse/property by the Congregation. These are not investment properties, they are social investments, and are held in the Financial Statements at amortised cost and not at valuation. These are not investment properties, they are social investments, and are held in the Financial Statements at amortised cost and not at valuation. A standard security is registered over each property. A standard security is registered over each property. The Trustees are satisfied that there are no indicators of impairment at the year end date. Charity Number
Property details
Cost at 31.12.24 and
% investment		 31.12.23
in property at		 31.12.23
in property at		 31.12.2024 and 31.12.2023 £
%		 Congregation of Northfield United Free Church of Scotland
SC014484		 38,000
42.00%		 Congregation of Ardeer United Free Church of Scotland
SC002592		 23,093
23.00%		 The Dundee Congregation of the United Free Church of Scotland
SC011683		 85,000
50.00%		 146,093
30