CHARITY REFERENCE NUMBER: SC008553
ST. TERNAN’S EPISCOPAL CHURCH, BANCHORY
ACCOUNTS FOR THE YEAR ENDED 30" SEPTEMBER 2025
ST. TERNAN’S EPISCOPAL CHURCH, BANCHORY
CHARITY REFERENCE NUMBER: SC008553
CHARITY TRUSTEES for the Annual General meeting held on 9th December 2025, which approved the accounts for the financial year ended 30" September 2025.
CHARITY TRUSTEES — Members of the Vestry
Rector People’s Warden Rector’s Warden [Treasurer Lay Representative Secretary
INDEPENDENT EXAMINER
BANKERS
Virgin Money Previously at 38, High Street Banchory Kincardineshire AB31 5SR
CHURCH ADDRESS/ PRINCIPAL OFFICE
St. Ternan’s Episcopal Church High Street Banchory Kincardineshire AB31 5TB
ST. TERNAN’S EPISCOPAL CHURCH REPORT OF THE VESTRY FINANCIAL YEAR ENDED 30" SEPTEMBER 2025
The members of the Vestry present their 2025 Annual Return and Supplementary Monitoring Return, together with the financial statements for the year ended 30" September 2025.
Structure and Governance
In terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006, the Vestry reports to the congregation as follows: I. St. Ternan’s Episcopal Church, Banchory is a registered Scottish Charity (SC008553). 2. It is a memberofthe Diocese of Aberdeen and Orkney of the Scottish Episcopal Church, and is in full Communion with the Anglican Church. 3. The superior authority is the Bishop of Aberdeen and Orkney. 4. Allof its affairs are governed by the Vestry, according to the requirements of Canon Law of the Scottish Episcopal Church and the Church constitution.
Appointment of Vestry Members
Vestry Members are elected or appointed at the Annual General meeting. There is no formal induction programme, but ongoing guidance is given to ensure that Vestry members are familiar with the Church’s values, aims and responsibilities, particularly as the designated trustees of a charity. Administrative Structure It is the duty of the Vestry to support and advise the Rector in the spiritual affairs of the Church, and to manage the temporal affairs of the congregation, with responsibility to keep the fabric of the church and other buildings in good working order, and to manage the finances of the Church.
Statement of Risk
The Vestry keeps under review the major risks to which the Church is exposed and has established procedures to mitigate any risks identified.
Charitable Objectives and Activities
The Church’s principal activities include public worship in sacrament, Bible study and prayer, congregational spiritual development, Christian education, working with young people in learning and development, and fund raising for local, national and international needs.
Volunteers
The Church hasa full-time stipendiary rector, appointed in August 2018. All other work is carried out by a large number of volunteers who freely donate their time and talents, and without whom the Church would struggle to fully function.
Use and Stewardship of Resources
The Church continues to make its facilities available for use for the whole community, for worship or other appropriate activities.
Financial Summary
A deficit of £22,436 has been made during the financial year compared to a deficit of £14,212 for the year ended 30" September 2024. Whereas congregational numbers are slowly on the rise after the Covid pandemic the demography of the attendees is heavily skewed towards those of pensionable age, with many on fixed incomes. Revenue, therefore, ts static, but expenditure rises inexorably with increases in stipend and utility costs. We have, therefore, begun to utilise investment savings to sustain cash flow. During the reported year we utilised £23,000 of savings for this purpose, thus giving an apparent surplus of £564 in the accounts.
Plans for future periods
In the near term the focus will be on re-establishing worship, pastoral work and seeking to re-establish a younger generation of worshippers, even if not in the church building.
Reserves
At the end of the year the Church held £146,115 of invested reserves; all of these are un-restricted. The Vestry has a policy of trying to maintain the maximum level of un-restricted reserves such that, in the event of a significant drop in income or an unforeseen requirement for fabric expenditure, the Church would be able to maintain its current level of activities for a reasonable period until replacement funding is available.
Statement of the Vestry Members’ Constitutional Responsibilities regarding Finance
The members of the Vestry must have prepared financial statements that give sufficient detail to enable an appreciation of the transactions of the Church during the financial year, and have the appropriate control and accountability processes in place to enable them to properly fulfil their stewardship role. The members of the Vestry are responsible for ensuring that proper accounting records are kept which, on request, must reflect the current financial position of the Church at the time. This must be done to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. They are also responsible for safeguarding the assets of the Church and must take reasonable steps for the prevention and/ or detection of fraud or any other irregularities ; _ } a
8th February 2026
INDEPENDENT EXAMINER’S REPORT
TO THE VESTRY OF ST. TERNAN’S EPISCOPAL CHURCH, BANCHORY
FOR THE FINANCIAL YEAR ENDED 30" SEPTEMBER 2025
| report on the accounts of the charity for the year ended 30" September 2025 which are detailed in the attachment, which was approved at the Annual General Meeting held on 9th December 2025.
Respective responsibilities of Vestry Members and examiner
The Church’s Vestry members are responsible for the preparation of the accounts in accordance with the terms of the Charities and Trustees Investment (Scotland) Act 2005 and Charities Accounts (Scotland) Regulations 2006. The members of the Vestry consider that the audit requirement of Regulation 10 (1) d 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 has been carried out in accordance with Regulation 11 of the Charities Account (Scotland) Regulations 2006. My examination included a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also included consideration of any unusual items or disclosures in the accounts, and sought explanation from trustees concerning such matters. In this case there were no such unusual items or disclosures. The procedure I undertook did not include a review of all the evidence that would be required in an audit; consequently, I do not express an audit opinion on the review of these accounts.
Independent Examiner’s Statement
In the course of my examination no matter has come to my attention.
Consequently, I have reasonable cause to believe that in all material respects:
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the accounting records are kept in accordance with Section 44 (1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations, and
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the annual accounts submitted accord with the accounting records and comply with Regulation 9 of the 2006 Accounts Regulations.
1, therefore, confirm that the accounts submitted properly reflect the true state of the St. Ternan’s, Banchory finances for the year ended 30" September 2024.
ST. TERNAN’S EPISCOPAL CHURCH, BANCHORY NOTES TO THE ACCOUNTS
YEAR ENDED 30" SEPTEMBER 2025
1. PROPERTY
The church, hall and rectory are not shown in the statement of balances as the Vestry believes that it not possible to put a market value on them. The valuation for the church and hall for insurance purposes is £3,931,827, and the rectory £321,048.
2. FUNDS
All funds are un-restricted
3. TRUSTEE EXPENSES
| Total gross remuneration to the | rector, who is a trustee ofthe church was £45,213. |
rector, who is a trustee ofthe church was £45,213. |
The breakdown of |
|---|---|---|---|
| this was as follows: | |||
| 2024 | 2025 | ||
| £ | £ | ||
| Stipend | 32,357 | 33,867 | |
| National Insurance | 0 | 0 (note 1) | |
| Pension | 10,430 | 8,316 | |
| Rectory Council Tax | 2,064 | 2,650 | |
| Locum Fees | 0 | 0 | |
| Travel and otherexpenses | =362 | 777 | |
| Gross Total | 45,213 | 45,610 | |
| Linked Charge contribn | 0 | 0 | |
| NetTotal | 45,213 | 45,610 |
There were no other payments to the charity trustees Note 1: Employment Allowance covered all liabilities.
4. PROPERTY EXPENSES
| Heat and Light | 5,187 | 5,352 |
|---|---|---|
| Church/ Rectory repairs | 2,437 | 2,121 |
| Insurance | 3,882 | 4,249 |
| Other | 1,840 | 1,800 |
| Total | 13,346 | 13,522 |
- CHARITABLE DONATIONS
6. CAPITAL EXPENDITURE
| Cystic | Fibrosis | Trust | 500 | 680 |
|---|---|---|---|---|
| Mary’s | Meals | 600 | ||
| 0 | 0 |
|
ST. TERNAN’S EPISCOPAL CHURCH
RECEIPTS and PAYMENTS ACCOUNT
|
FOR THE YEAR ENDED 30" SEPTEMBER 2025
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|---|---|---|---|---|---|---|---|
|2024|2025|
|Notes|£|£|
|Receipts|
|Donations|received|
|Voluntary|Income:|Pledged|Giving|32,839|34,309|
|General|Plate|Collections|488|288|
|Gift|Aid|Tax|Reclaimed|6,203|10,897|
|Donations|610|150|
|Other|0|
|Receipts|from|investments|other|than|land|or|buildings|
|Investment|income|5,083|5,124|
|Bank|interest|
|Gross|receipts|from|other|charitable|activities|
|Charitable|donations|500|1,357|
|Use|of the|church|hall|1,350|1,700|
|Rectory|Rent|0|0|
|Fabric|Upgrade|6,997|3,760|
|Grants|received|24,620|1,337|
|Total|receipts|78,690|58,922|
|Payments|
|Payments|for|charitable|activities|
|Net|Clergy|cost|3|45,213|45,610|
|Quota|6,495|7,834|
|Non-Clergy|Trustee|expenses|3|
|Property|expenses|4|13,346|13,522|
|Administrative|expenses|1,703|3,096|
|Church|expenses|2,453|1,995|
|Exceptional|(Fabric|Upgrade)|23,192|0|
|0|
|Total|payments|for|charitable|activities|92,402|66,294|
|Charitable|donations|5|500|
|Capital|expenditure|6|0|0|
|Total|payments|92,902|81,358|
|Surplus/|(deficit)|for the year|(14,212)|(22,436)|
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ST. TERNAN’S EPISCOPAL CHURCH
STATEMENT OF BALANCES
AS AT 30" SEPTEMBER 2025
| 2024 | 2025 | |
|---|---|---|
| £ | L | |
| Bank and cash in hand | ||
| Opening balances | 18,706 | 4,494 |
| Surplus/ (deficit) for the year |
(14,212) | (22,436) |
| Savings Liquidated | 23,000 | |
| Closing balances | 4,494 | 5,058 |
| Investments | ||
| Market value at beginning of year | 154,641 | 157,898 |
| 8nvestment capital purchase/ liquidated | (23,000) | |
| Unrealised gain/ (loss) in year |
3,257 | 11,217 |
| Marketvalueatendofyear | 157,898 | 146,115 |
All funds are unrestricted
Approved by the Vestry on December 8th 2025 and signed on their behalf
Scov0¢gss 3
THE SCOTTISH EPISCOPAL CHURCH
DIOCESE OF ABERDEEN & ORKNEY
NAME OF CHARGE: ST. TERNAN'S EPISCOPAL CHURCH, BANCHORY
ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2025
| Note | 2023/2024 | 2024/2025 | |
|---|---|---|---|
| £ | £ | ||
| A. RECEIPTS |
|||
| Congregational & Voluntary | 1 | 33,937 | 34,747 |
| Special Collections | 2 | 500 | 1,357 |
| G/A tax + Investments | 3 | 11,286 | 16,021 |
| Property | 4 | 1,350 | 1,700 |
| Sundry Income | 5 | 6,997 | 3,760 |
| Grants/Loans Received | 6 | 24,620 | 1,337 |
| Capital Liquidated | 6 | 0 | 23,000 |
| Total | 78,690 | 81,922 | |
| B. PAYMENTS |
|||
| Clergy Cost | 7 | 46,776 | 45,610 |
| Property Expenses | 8 | 11,783 | 13,522 |
| Church Expenses | 9 | 2,453 | 1,995 |
| Administrative Expenses | 10 | 1,703 | 3,096 |
| Charitable Payments | 11 | 500 | 1,280 |
| 63,215 | 65,503 | ||
| Quota | 12 | 6,495 | 7,834 |
| Capital Payments | 13 | 0 | 0 |
| Exceptional Items | 14 | 23,192 | 8,021 |
| 92,902 | 81,358 | ||
| SURPLUS/(DEFICIT) FORYEAR (A-B) | -14,212 | 564 | |
| Bank &Cash Balances at 1stOctober | 18,706 | 4,494 | |
| add Surplus/(Deficit) for year | -14,212 | 564 | |
| Bank&Cash Balances at30th September | 4,494 | 5,058 | |
| Represented by Funds in the following accounts: | |||
| Clydesdale Bank Current Account | 3,313 | 3,348 | |
Clydesdale Bank Cash Management A/c - Covenants |
1,181 | 1,710 | |
| 4,494 | 5,058 | ||
Note:£22,168revenuefromSECUTsalesheldinaseparate |
account |
RECEIPTS FOR YEAR ENDED 30 SEPTEMBER 2025
| RECEIPTS FOR YEAR ENDED 30 SEPTEMBER 2025 | ||
|---|---|---|
| 2023/2024 | 2024/2025 | |
| £ | £ | |
| 1. CONGREGATIONAL & VOLUNTARY INCOME | ||
| General Collections | 488 | 288 |
| Covenants - Direct Receipts | 32,839 | 34,309 |
| Donations | 610 | 150 |
| Functions | 0 | 0 |
| Other | 0 | 0 |
| 33,937 | 34,747 | |
| 2. SPECIAL COLLECTIONS | ||
| Cystic Fibrosis Trust | 500 | 497 |
| Bishop's Appeal! | 0 | 0 |
| Mary's Meals | 0 | 860 |
| 500 | 1,357 | |
| 3. ENDOWMENT INCOME & INTEREST | ||
| Dividends | 5,083 | 5,124 |
| Tax Recovered | 6,203 | 10,897 |
| Interest Received | 0 | 0 |
| 11,286 | 16,021 | |
| 4. PROPERTY REVENUE | ||
| Contributions received towards Costs | 1,350 | 1,700 |
| 5. SUNDRY INCOME | ||
| Fabric Fund | 6,525 | 3,760 |
| Grants for Rector Work | 0 | 0 |
| Youth Work | 472 | 0 |
| Bequests | 0 | 0 |
| Grants for ministry | 0 | 0 |
| Rectory Rent | 0 | 0 |
| Sale ofInvestments | (¢) | 0 |
| NET School | 0 | 0 |
| 6,997 | 3,760 | |
| 6. GRANTS/LOANS RECEIVED | ||
| 24,620 | 1,337 | |
| CapitalLiquidated | 0 | 23,000 |
PAYMENTS FOR YEAR ENDED 30 SEPTEMBER 2025
| 2023/2024 | 2024/2025 | ||
|---|---|---|---|
| £ | £ | ||
| 7. CLERGY COST | |||
| Stipend (gross) | 32,357 | 33,867 | |
| National Insurance (employers) | 0 | 0 | |
| Pension | 10,430 | 8,316 | |
| Council Tax | 2,064 | 2,650 | |
| Locum Fees and other allowances | 0 | 0 | |
| Travel/Mileage Allowance | 362 | CT | |
| Rectory Upkeep | 1,563 | 0 | |
| Total | 46,776 | 45,610 | |
| Less: Linked Charge Contribution | 0 | 0 | |
| Total | 46,776 | 45,610 | |
| 8. FABRIC MAINTENANCE EXPENSES | |||
| Insurance Premiums | 3,882 | 4,249 | |
| Water& Sewerage Rates | Church | 0 | 0 |
| Hall | 0 | 0 | |
| Routine Repairs & Renewals = | Church | 874 | 2,121 |
| Rectory | 0 | ||
| Heat & Light | 5,187 | 5,352 | |
| Verger/Cleaner | 1,840 | 1,800 | |
| Other | |||
| Total | 11,783 | 13,522 | |
| Less Linked Charge Contribution | 0 | 0 | |
| Total | 11,783 | 13,522 | |
| 9. CHURCH EXPENSES | |||
| Organist | 878 | 1,000 | |
| Organ Maintenance | 644 | 327 | |
| Music & Choir | 206 | 215 | |
| Altar Expenses | 358 | 239 | |
| Books | 0 | 0 | |
| Other | 367 | 214 | |
| Total | 2,453 | 1,995 | |
| 10. ADMINISTRATIVE EXPENSES | |||
| Secretarial & Office Costs | 0 | 0 | |
| Printing, Stationery | 351 | 1,956 | |
| Advertising and Publicity | 0 | 0 | |
| Telephone & Postage | 446 | 571 | |
| Youth Ministry | 446 | 376 | |
| Training and Development | 0 | 0 | |
| Bank Interest& Charges | 154 | 143 | |
| Sundry | 306 | 50 | |
| Total | 1,703 | 3,096 | |
| Less Linked Charge Contribution | 0 | ||
| Total | 1,703 | 3,096 |
PAYMENTS FOR YEAR ENDED 30 SEPTEMBER 2025 (continued)
| 2023/2024 | 2024/2025 | |
|---|---|---|
| 11. CHARITABLE DONATIONS | ||
| General | 0 | 0 |
| Cystic Fibrosis Trust | 500 | 680 |
| Scientists in Congregations | 0 | 0 |
| Mary's Meals | 0 | 600 |
| 0 | ||
| 0 | ||
| Bishop's Lent Appeal | 0 | |
| 500 | 1,280 | |
| 12.QUOTA | 6,495 | 7,834 |
| 13. CAPITAL EXPENDITURE | ||
| 0 | 0 | |
| 14. EXCEPTIONAL ITEMS | ||
| Church Fabric Repair/ Upgrade | 23,192 | 8,021 |
| Rectory Fabric Repair/ Upgrade | 0 | 0 |
| Hall Fabric Repair/ Upgrade | ||
| Relocation | 0 | 0 |
| 23,192 | 8,021 |
ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2025
SCHEDULE OF INVESTMENTS
Name of Fund
Holding @30/9/2025 Income
| Book | Market | Market | 2023/2024 | 2024/2025 | |||||
|---|---|---|---|---|---|---|---|---|---|
| Cost | Value | Value | |||||||
| 2024 | 2025 | ||||||||
| £ | £ | £ | 3 | £ | |||||
| 5,176 | Units | SEC | Unit | Trust | 77,701 | 157,898 | 5,083 | ||
| 4,386 | Units | SEC | Unit | Trust | 65,841 | 146,115 | 5,124 | ||
| 157,898 | 146,115 | 5,083 | 5,124 |
Note: 790 units liquidated in August 2025 to yield an income of £25,000
Note: the Market Value of the Scottish Episcopal Church Unit Trust Pools is Stated as at 30th September 2025
Accounts Prepared by - Approved on behalf of the Vestn ae