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2025-12-31-accounts

Charity Registration No. SC009458 (Scotland)

LERWICK CONGREGATIONAL CHURCH UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

THE A9 PARTNERSHIP LIMITED Chartered Accountants 47 Commercial Road Lerwick Shetland ZE1 0NJ

LERWICK CONGREGATIONAL CHURCH

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mrs A Erskine
Mrs W Manning
Mrs E Leask
Charity registration Scotland SC009458
Registered office 3 Bellevue Park
Lerwick
Shetland
ZE1 0EE
Independent examiner The A9 Partnership Limited
47 Commercial Road
Lerwick
Shetland Isles
ZE1 0NJ
Bankers Bank of Scotland
117 Commercial Street
Lerwick
ZE1 0DN

LERWICK CONGREGATIONAL CHURCH

CONTENTS

Page
Trustees' report 1 - 2
Independent examiner's report 3
Statement of financial activities 4
Balance sheet 5
Notes to the financial statements 6 - 11
The following pages do not form part of the statutory financial statements
Detailed statement of financial activities 13 - 14

LERWICK CONGREGATIONAL CHURCH

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2025

The trustees present their annual report and financial statements for the year ended 31 December 2025.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 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)".

Objectives and activities

Lerwick Congregational Church seeks to advance the Christian faith through its work, witness and outreach in the local community.

Public benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Activities

We hold weekly services and through them we have an active outreach in to the community. The women also meet monthly from October - March with guest speakers and a time of fellowship. we also attend World Day of Prayer services, Bible Week services and Bible Study groups.

As we are a small fellowship with too few members to sustain a minister we are indebted to locum preachers who prepare and take our weekly services and enable us to have regular worship.

We are committed to carrying out the duties required to maintain a Christian presence in our community.

Achievements and performance

Significant activities and achievements against objectives

Our members are very supportive of charitable work within the community. This financial year we have supported:

We sold the Manse in October and we have deposited the proceeds in a 30-Day Notice deposit account. Our income from offerings will need to be supplemented from these funds to meet our outgoings. The sale of this property is a one-off event.

Financial review

Unrestricted income for the financial year, excluding proceeds for the sale of the Manse, totalled £11,912 (2024: £19,149). Unrestricted expenditure, excluding costs to sell the Manse, totalled £21,945 (2024: £20,120).

Net unrestricted proceeds received for the sale of the Manse was £258,872 and excludes any original purchase costs.

Unrestricted reserves at the end of the financial year were £297,821 (2024: £48,982).

Going concern

Funds for the sale of the Manse will be used to cover costs of the charity going forward as current incomings are not expected to be of a level to cover all future costs. There are no going concern issues at this time however, the trustees intention is to dissolve the charity and transfer surplus assets to local charities.

LERWICK CONGREGATIONAL CHURCH

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

Reserves policy

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

Structure, governance and management

The charity is an unincorporated association and has been a registered charity since 13 December 1907. The governing document is its constitution.

The trustees who served during the year and up to the date of signature of the financial statements were: Mrs A Erskine Mrs W Manning Mrs E Leask

Recruitment and appointment of trustees

New trustees are appointed as per the charity's constitution. All trustees give their time voluntarily.

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

Wilma Manning Mrs W Manning Trustee

25 August 2026

LERWICK CONGREGATIONAL CHURCH

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF LERWICK CONGREGATIONAL CHURCH

I report on the financial statements of the charity for the year ended 31 December 2025, which are set out on pages 4 to 11.

Respective responsibilities of trustees and examiner

The charity's trustees are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The charity trustees consider that the audit requirement of Regulation 10(1)(a)-(c) of the Charities Accounts (Scotland) Regulations 2006 does not apply.

It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and to state whether particular matters have come to my attention.

Basis of independent examiner's statement

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

Independent examiner's statement

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

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

  2. to keep accounting records in accordance with Section 44(1)(a) of the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 4 of the Charities Accounts (Scotland) Regulations 2006, and

  3. to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the Charities Accounts (Scotland) Regulations 2006

have not been met, or

  1. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.

The A9 Partnership Limited The A9 Partnership Limited

47 Commercial Road Lerwick Shetland Isles ZE1 0NJ 1 September 2026

LERWICK CONGREGATIONAL CHURCH

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2025

Unrestricted Unrestricted
funds funds
2025 2024
Notes £ £
Income from:
Donations and legacies 2 9,191 10,252
Charitable activities 3 1,623 8,897
Investments 4 1,098 -
Other material income 273,111 -
Total income 285,023 19,149
Expenditure on:
Charitable activities 5 21,945 20,120
Other material expenditure 14,239 -
Total expenditure 36,184 20,120
Net income/(expenditure) and movement in funds 248,839 (971)
Reconciliation of funds:
Fund balances at 1 January 2025 48,982 49,953
Fund balances at 31 December 2025 297,821 48,982

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

Other material income and expenditure for 2025 relates to the sale of property - Manse, 44 Murrayston.

LERWICK CONGREGATIONAL CHURCH

BALANCE SHEET

AS AT 31 DECEMBER 2025

Notes
Current assets
Debtors
10
Cash at bank and in hand
Creditors: amounts falling due within
one year
11
Net current assets
The funds of the charity
Unrestricted funds
12		 2025
£
618
299,140
299,758
(1,937)		 £
297,821
297,821
297,821		 2024
£
-
48,982
48,982
-		 £
48,982
48,982
48,982

The financial statements were approved by the trustees on 25 August 2026

Wilma Manning Mrs W Manning Trustee

LERWICK CONGREGATIONAL CHURCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025

1 Accounting policies

These financial statements for the year ended 31 December 2025 are the first financial statements of Lerwick Congregational Church prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 January 2024. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.

Charity information

Lerwick Congregational Church is registered as an unincorporated Scottish charity.

1.1 Basis of preparation

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

The charity has taken advantage of the provisions in the SORP for charities not to prepare a statement of cash flows.

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

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

1.2 Going concern

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

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity 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.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

LERWICK CONGREGATIONAL CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6 Heritage assets

In a departure from compliance with the FRS102 accounting standards regarding the treatment of freehold property the decision has been taken to not include the Church on the balance sheet of the charity. The current market value of the building is unknown and there is no evidence to suggest that an active market for the property exists therefore it would not give a true and fair view of the financial position of the charity if this tangible asset were to be included.

Last year did not include the value of the Manse as it was unknown, and has since been sold during this year.

The heritage assets were originally donated to the charity, therefore had no initial valuation and have not been valued until disposal. Disposals have gone out to market to achieve the best price for the charity. The Trustees ensure the preservation of the assets.

All other applicable standards and legislation have been complied with. There is no monetary effect on the current or prior period financial statements as a result of the departure.

The Church is open during weekly services, which anyone is welcome to attend.

1.7 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.

1.8 Financial instruments

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

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

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

Basic financial assets

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

LERWICK CONGREGATIONAL CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

1 Accounting policies

(Continued)

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 charity’s contractual obligations expire or are discharged or cancelled.

2 Income from donations and legacies

Unrestricted Unrestricted
funds funds
2025 2024
£ £
Donations and gifts 8,701 10,252
Other 490 -
9,191 10,252
Income from charitable activities
Unrestricted Unrestricted
funds funds
2025 2024
£ £
Other trading activities
Charitable rental income 1,523 8,707
Other income 100 190
1,623 8,897

3 Income from charitable activities

LERWICK CONGREGATIONAL CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

4 Income from investments

Unrestricted Unrestricted
funds funds
2025 2024
£ £
Interest receivable 1,098 -
5 Expenditure on charitable activities
2025 2024
£ £
Direct costs
Supply costs 2,202 2,601
Insurance 2,512 2,953
Advertising and stationery 563 482
Heat and light costs 6,786 4,426
Repairs ad maintenance 2,115 3,343
Donations 2,130 2,205
Organist 660 720
Legal and professional fees 718 549
Travel expenses 441 459
Miscellaneous costs 2,425 2,046
Affiliation and Guild fees 393 336
20,945 20,120
Share of support and governance costs (see note 6)
Support 1,000 -
21,945 20,120
Analysis by fund
Unrestricted funds - general 21,945 20,120
6 Support costs allocated to activities
2025 2024
£ £
Governance costs 1,000 -
Analysed between:
Other trading activities 1,000 -

LERWICK CONGREGATIONAL CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

7
Net movement in funds
2025
£
The net movement in funds is stated after charging/(crediting):
Fees payable for the independent examination of the charity's financial
statements
1,000
8
Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits
charity during the year.
9
Employees		 2024
£
-
from the

The average monthly number of employees during the year was:

Total
There were no employees whose annual remuneration was more than £60,000.
10
Debtors
Amounts falling due within one year:
Prepayments and accrued income
11
Creditors: amounts falling due within one year
Accruals and deferred income
12
Unrestricted funds		 2025
Number
-
2025
£
618
2025
£
1,937		 2024
Number
-
2024
£
-
2024
£
-

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 January Incoming Resources At 31
2025 resources expended December
2025
£ £ £ £
General funds 48,982 285,023 (36,184) 297,821

LERWICK CONGREGATIONAL CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

12 Unrestricted funds (Continued)
Previous year: At 1 January Incoming Resources At 31
2024 resources expended December
2024
£ £ £ £
General funds 49,953 19,149 (20,120) 48,982
13 Related party transactions

There were no disclosable related party transactions during the year (2024 - none).

LERWICK CONGREGATIONAL CHURCH

MANAGEMENT INFORMATION

FOR THE YEAR ENDED 31 DECEMBER 2025

The following pages do not form part of the statutory financial statements which are the subject of the independent examiner's report.

LERWICK CONGREGATIONAL CHURCH

DETAILED STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2025

INCOMING RESOURCES
Donations and Legacies
Offerings received
Donations
Guild
Income from Charitable Activities
UF Charitable income 1 - property rental within Charitable objects
UF Charitable income 1 - miscellaneous
Other Incoming Resources
UF Other interest receivable non-operating
Sale of Manse
Manse costs refunded
TOTAL INCOMING RESOURCES		 2025
£
8,334
367
490
9,191
1,523
100
1,623
1,098
272,000
1,111
274,209
285,023		 2024
£
9,962
290
-
10,252
8,707
190
8,897
-
-
-
-
19,149

LERWICK CONGREGATIONAL CHURCH

DETAILED STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2025

OUTGOING RESOURCES
Charitable Expenditure
Supply costs
Insurance costs
Advertising and stationery
Heat and light costs
Repairs and maintenance
Donations
Organist fees
Legal and professional fees
Travel expenses
Miscellaneous expenses
Affiliation and guild costs
UF CA1 - Share of support costs
Other Expenditure
Manse - costs to sell
TOTAL OUTGOING RESOURCES
NET MOVEMENT IN FUNDS		 2025
2,202
2,512
563
6,786
2,115
2,130
660
718
441
2,425
393
1,000
21,945
14,239
14,239
36,184
248,839		 2024
2,601
2,953
482
4,426
3,343
2,205
720
549
459
2,046
336
-
20,120
-
-
20,120
971