Charlty No. SC010773 THE FACULTY OFADVOCATES FACULTYFUNDS ANNUAL REPORT and GROUP FINANCIAL STATEMENTS For theyoar gnd¢d 31 O¢tob•r 2024
THE FACULTY OF ADVOCATES FACULTY FUNDS ANNUALREPORT of th¢ TRUSTEES and GROUP FINANCIAL STATEMENTS Forthe yathr ended 31 October 2024 Contents Page Officers and Advisers Report ofthe Truslees Stotement olTrustees' R8sponsiblUtig8 Consolldateil Slatement of Flnanci8lActlvltles Faculty Funds Statement of Flngnclal A¢tNtties io Con8011dEted and F8culty Fund8 Balancg Sheet8 Con5011dated and Foculty Fund8 Cash Flow Ststements 12 Noteg totha A¢count3 13-34 Indepon(Jent Audlior'8 Reportto the Tru$teeg ol The Faculty of Athocates F8culty Funds 35-37 DerBlled Income an(J Expenditur8 Ac¢ount8 38-39
THE FACULTY OF ADVOCATE5 FACULTY FUNDS ANNUAL REPORT ofthe TRUSTEES and GROUP FINANCIAL STATEMENTS Forth8 year end¢d 310Gtsb¢r2 OFFICERS AND ADVISERS Trustees: Prln¢lpalAddr¢••: Th• FAculty ol Advooat•o F•culty Fund# u*•8 th• ••rvlc•• otth• loUowlTr4 org•nl$atlon•: Bankor?: Bank of Srotland 300 Lownrn8rket Edlnburgh EH12PH Imio8tmgnt Maniior•: RBC BrewiTh Dolphln Atria Ono 144 Morr180n Streei EdiThburgh EH3 8BR Inv•8tm•nt Managors.. LGTWe8lth M8n8g8ment C8Pltal Square 58 Morrbson Street Edlnburgh EH3 8BP Sollcltors: B$lfour & Manson LLP 56-66 Frederick Street Edinburgh EH21LS Audltor: Saffery LLP 9 Haymbrket Square Edinburgh EH3 8RY
THE FACULTY OF ADVOCATES FACULTY FUNDS ANNUAL AEPOATOF THE TRUSTEES Forthèyear onded 310otober 2024 The Trustees submitlhtsir report and the audrted accounts for the year ended 31 October 2024. The account8 have been prepared in 8c¢ord8nce with the accounting policies set out in note 2 10 the accounts end comply with the charity's tru81 deed, thè Charities and Trustee Investment (Scotlandl Act 2005, the Chartties Accounts (Scotlandl Regul4tlon$ 200618s amendfidl and Accountin8 and Reporting by Chaiitl8s'. Stat8ment ot Recommended Practice ISORPI applicable to charities preparing their accounts in 3ccordane8 Wlth the FSn8ncial Raporting Stondird applicable in the VK and Republic of Ireland IFRS 1021 Isgcond edf(lon. October 20191. Objectlves Jnd actlvltles The objectives of the Faculty ol Advocates F8culty Fun¢9 I'F8cuIty Funds'l are Inter 81ia.' thè provi8ion and m8inten8nce of the Advocates Library as the Natlonal Law LibiBry of Scotland to f8cllSt8t8 8cces8 by the public to qU81ifi8d independent advice on the law ol Scoiiand 8nd loi the efficient 8dminisir8tlon of the Couns.. the provision of facilities for the training and examination of persons in the 18w of Scotlond.. the furtheran¢e of the soun (Jtveloprnent of the law in SCOtnd.. and the preservutlon of book3, manuscrlpts end objects of Importance to the hlstory of th8 18w its admlni$tration. There h8vo been no ch8nge8 in the Faculty Funds. objeclive8 during the year. Prlmlpal obl•ctfv&8 durlngtho year and str•teglo• •mployed to a¢hlov•thw• obl8¢tlvg• The prlnclpal oblectlveg of the Faculty Funds duringthe year were.. operatinggs an effective regulator of members ol the Faculty of A(Jvoc8ies I'FacullV'I, dellveryof 8 *ructure(J progr8mme of training and educationforboth prsctlclng memt•ers and dovlls, plus ihe provislon of det8lled and consider80 lepdtiackto S¢otti8h Government consuli8llon papers on the development ol tho Scottlgh LeR81 System. AchlovemèntN gnd porform•nc• The Faculty hG8 molntainod 8 prornlnent gThd pro8Ctive role in conlributlng lo law r8loim and èxternal engagemeni. continulrng to Ilalse closely with tho Scottish Governrnent on leglyl8tive pioposal$ regulaiory dev8lopments. Ovei the course of the year, 88verHI signilicent Government initiatives have i$8ued for public ¢oll8ult8tion. In response, the FBcLJIty has submitted detailed snd c8r8fully reasoned repr09èntgtlons almed 8t supportlng tha eveiopment otB181r. effective Bnd SL15t8inable Scottish Legal Sy$tom. Noteworthyamongthese 018 the Regu18tlon of L8881 Servlces IScotl8ndl 8111 whirh is currently 8w8lting Roy81 Assent as w91105 the Victims, Wltne3885, 9Thd justice Reform Iscottsndl Bill In siage 3 01 the ParliAmentary Pro¢e9S. Foculty also ploys a key role In sh8ping ks irrternatlon81 Snterests for both Ils memb8rs to practice ovèrseas and Intornational B(Jvocate8 to piactice ut the Scottish Bar. Thls drives int8rnatlon81 8greement between legal profes8ional bodies v¥here there 13 a commtsn intent to support mutugl recognhlon OT prof88sion81 legal qualifications. Currcntly, F8cuIty are in negotlatlons wlih Canady, Au5tr81ia, Now Ze8lgnd, 8eigium. Augiria 8ntJ Swltzerland to explore possible models and proce88e5. In additlon to Its lewslatlv8 eng8gement, F8cuIty he8 provided repre3ent8tlon 8nd instructlon in a number Dr mafror publlc inquiries such 8S the Scottlsh and UK Covld Inquiry, Scottish Child Abuse Inquiry, Sheku Bayoh InquSry, Infected Blood Inquiry and the Scottish Hospltal Inquiries. As w81188 Inquiry iepresentotion, the Fa¢ulty has actively paflicipaied in broadpr ¢Jiscugsions ¢oncernlng thè evolving rol8 of 18wyers os elhicol gatekeeper8 navIg1ng the omplex Inierplgybetween professlonal obllg£tlon8 8nd the Incr88$ingethic81, 8oci818nd politlcal $¢rutinyfaced by the18g¥l proftts810n. The Libr8ry costs are stated bèfore a conlrlbutioTr from the Facultyol Advocates Members, Fund I'Mp.mber.4' Funds'l to cover the oper8tional costs of a proportlon of tst8ff and online 8ub8¢ripiions. The nel expen(Jtture. excluding st8ff costs, on the malnienance of book stock and subgcription to print and online m8terial decreased 10 £226k12023 £254kl. This included Saurclng newly published m8terielto complement the Legal Deposit 18w collection whlch we curate. providingadditionalaccessthrough onllne Subscriptions, repl8cingmissing items and on pre5eNation of oui hlstorie collection9 where morethan É27k12023.. £22kl was spent on bindingforconservation purposes. The Facully continues to support thè Abbotslord Collection of Sir Waller Scott. helping prep£re items for exhlbltion. undertake conclltlon assessments. provide gcces$to works for researchers 2nd 8ddress conservgtion needs.
THE FACULTY OF ADVOCATES FACULTY FUNDS ANNUAL REPORT OFTHE TRUSTEES IGontinued) Forthe year ended 31 October 2024 AGhievements and perlormance Icontlnuedl The Faculty has continued the Qualtty Assurance Programme lorthe ninth ye8r following rts iThtro(Juction in 2016. In 2024. 88 mernbers Df Faculty were gssesed. All members being assessed were jLJdged as having met the andard ol effective a¢Jvocay on their first assessment. Achlevements and pertormance The Free Le8al Service¥ Unit ol the Facully contlnues the centuries-old tradition of counsel providing acc893 to usilce lor those unable to 8flord the c05t of golng to law. The Unit call3 on the diverse expertise of Soma 450 members of Faculty to offer free legal advlce in all areas ol the law and repregent8tion in any court or tribunal in Scotland. 202314 saw 35 new case applic8tions. not including work on on-going c8ses from 202213. The Unit is still continuing to build new re121ionships wlih agencies and. in 202314, has signed Memofanda of Understandingwilh Fbfe Community Law and JusiR5ght Scotland. The Lord Hopo of Craighegd schol8rship, Introduced bythè Fsculty in 2018, lunded by a voluntary levy on members ot F8culty, ¢ontlnued to rn8ke awards to individuAls undert8king ihe Oevilllng process. together wlth the long- $t8ndin8 awards trom the Faculty Schol£rslliP tund, these provlde contlnulng tangible support to the F8CLJlty poll¢y to encourBge 8re81er dlverslty the bar. Edu¢atlon 8nd tralnlni The responsibillties ol the Faculty, In rolation to admlsslons, have been undert8k8n in the course of the ye8r by tho Board ot Examiners, the Board ol A8893sor8. the Dean's Council, the Clerk of Fecuityond tho Doan of Faculty, all in 8ccordonce with tho RoguLDlions 0$ to Intrants. The Clerk ol Faculty is ¢urr8ntly lèsding on a project re¥lyln8 the Aeguletion8 a8 to Intr8nt8 Wlth th8 8UPPOrt of the Deputy Clerk. Thi8 1$ oxpèct8d to finglise later In 2025. Ouringthe year, 37 Intrants presented thelr p8tltion8 for matrlculatlon. and th8 Fsculty admitted 22 new m8mbers. The Tr8ining ancl Education Department, the Cleik. anij the Oepuiy Clerk, mBlntBln rtsistlons th unlv8rsltles ond handle Inquiries from Indlvldug15 Snt8reste¢J In a career 8t Ihe b8r. The Department adrnlllSslerb the F8cuIIy'S compulsory piofes8lon81 iJev8lopmenl ICPDI scheme and monltors compliBnce with the CPD requlfements,. Indlviduals whof811 to S8t18fy the requirements 8re reported to th8 Dean. Th• F8cuIty runs education and training ovtsnts, whlch thls year includod: Faculty, toggtherwf(htholohnSmithCèntraandJohnSmith Tru8t, hosted 8n Intarn8tion81 Women'8 Day event et Parliament H811. Thiswas torecognise thework or1.n In public life aNJ 8culty'ts 1111()i-devil8 piogr&1i1I71e was 8g81n<l I whlchr2n from Januaryto March.Thls is led by8dvocBie th Faculty hosled its16 World Inlellectuol PropetyDayConfer8nce 2024dunngApril.Thethemefor thisye8r'sfreeevent,which8S 8lwayswa8 opèn 10811 advocates, solicitors, dewls, tr8inees, giudantsand other professionals with an int8rÈst In IPw8s'lntellectual Propertyandthe Sustainable DevelopmentGo81$.. Building(yJrfuturewth InrKWAtioll 8nd cre8tNty'. F8cuIty h03ted the 2 nd 8nnualWomen gtthescottish B8rCaroorsClinic ogoin in May aimirngto encourage and 3UPPOrt more women to congKler 8 ¢8reer8tthe Bor. Female tr8ineos and qualifiedsolicitors hbd confidentigl conversationg Wlth fernale members of Faculty.These convers8tions covered. 8mongotherthings. howtoplan theirp)urneytothe Bar. current opportunities and rk[eve15 at F8cuIty, 8ndwhat life as 8nadvoc8te is really like. Faeulty memberggttended theworld 88rConference IN M8yvthich was held in Belfa%t ljijhliii. The thre84gtyevent attracteddelegesfrom 811 overthewoild. The Dean of Fwulty LCtocpart In the'Rule ofLaw unclerlire.. 8Xjstingin Bn 8geof conflici'paneldiscusyon. LC dIscuss c8ncelcutture.frEespeech the ri8hiiooffelld 8tthe conlererbce aiidw#¥ iuiiivu
THE FACULTY OF ADVOCATES FACULTY FUNDS ANNUAL REPORTOFTHETRUSTEES Icontinuedl Forth• yoarend•d 31 October 2024 Edueatitsn andtraininql¢ontinugdl Inthat sesslon b he-then AdvocateG8neral. Scotnd. Loro Presidcnt nf the C.OLlrt of ses.sion ai)d Lord Justre Gener81 ofscotland. sharccl hiq perspectives alongside his peersyrom other ICAB lurisdlcfjg durindapaneidiscusslon Enthl8d'An Independ8nt88rWanlndependent ju(li(Y., A8 afoliow-upfroTn Pro PJnoweek Lastyear.the Free LegalSerMc88 Unit host an want rtl&J st Following the Guirje.. Acr¢ssingJustico in the 21 C8ntury' in Jun8 whichYeaiurBd a present8tion Iroffl Keeper hg Frpe LegalSeIC8S Unrt then hosted Ing Pro Bonowetsk 2024, IllLI h 8vgnt to Pro Bono WeBk where. Advocate GBner21 and Advocat both presc.n: ed Yhe Power of Environm8nlAI l AW, whore advoc818 both spoke ai. Openingofthe Legal Yearw89 Introduced bythe Lord Prasldent, Lord Carloway 8t a ceremonyin Soptem se. Thetradition81 ceremony Sncludeol spooeheyfromthe Lord PresideJ)i . Dean olFacu1tyofV0CAt9$ 8n Pro$i¢ent of the LawSocietyotScoiian(J. Fgriilty ttn8tpd Annu81 Ernploympnt Law Group confprF.n,- Dined h ko not I by other speakers Including Th8 fumblin8 Lasgie's annusl by Uvr?n lit FJc.Iilly. ry 8ernlnar wa$ ho$t8d in the Laigh Hall, chalred nd included 9paaker8,' Solicitor General, tIDrii th¢ BBC. Funds raised via ticket gsJle9 wont i yuppori ihe International Ju8ti¢e Mission fjnd Survivors of Human Tratllcking in Scotland. The Tumbllng Lassiè held itg annual Ball in Novembor and organised a silent auction to ralse money tor International Iugiic9 Mission ond Survwois of Human Tr£fficking in Seoti8nd. Ovar £20.000 wag ralseLY by the 8811 thi8 yeai, Bnd Tumbling LA¥sie hag now ralsed over £120.000 slncg It began In 2015. Tha b811is nowscotiand's Largest fundr8lsing eveni for 8ntl-tr8ff IcklngeÉuse8. )arked International Men's Day wlth & lunchtim8 tolk for member8 and staff. His prespntatlon ¢ovpred the suddon (Ind unexpected d88th by sulclde of hi8 best Irl&nd an¢J lellow8dvo¢8tp gndthèirnpBct thatthls had on hlm. the 8tlgmo surrounding mental tor,?dvor{?Ios and men in gener81. and the challengès in flndlnga healthywork-llfe balance as an advoc8te. The annuaL21 It Century 88r Conference tonk placp in December. Tho themefor thls year's event, co-ch8iied b a% 'M8inralning Priv8cyin 8 Public World." 11 w o introduced the keynote sp?8ker, anull>. Fln8nciaL Review Consolid8t8d account8, al80 referre(J to as Group 8c¢¢unts, have beon prepAred after consult8tion wth our firm ol Auditors. Saffary LLP. The Group comprises the Faculty of Advocates Foculty Funds and Faculty Ser¥t8 Llmited. The combined Income for the group is £11.039k 12023: £11.329kl. char8b[8 activity expenditure is comperable between year5 at £2.888k12023 £2.651kl. The group's investments havè ggnerated net gains of £31 Ok 8ftor rggular dividend and interest yields12023.' g21ns of E55kl. The overaii surplLJg tor the year for the group is £503k12023.. £1.862kl.
THE FACULTYOFADVOCATES FACULTY FUNDS ANNUAL REPORT OFTHETRUSTEES l¢ontlnuedl Forthe year anded 31 O¢tober 2024 Financo i•vlow Icontinuedl Tho Éroup h89 unrastricted reseNes of £9,122k12023.' £8,836kl and restricted res¢tves of £1,311 k12023: El,094kl. The deflned beneflt penslon scheme actuarial v&lu£tion show3 a ftjllyfunded pogltlon for the Scheme, there are Recovery Plan ¢ontrlbutions required. Investments In accordance with the Deed of Trust, the Trustees hEve the power to inve8t in $uch BSSOts as they sea ff(. The Trustees h8vo appointed RBC Brewin Dolphin and LGTWealth M8na4ement Bs inve8tment manag8r8. Tha RBC 8rewin Dolphin portfolio is linked to the F$ItY$chO1arShp/L0rd Reid restricted lund. The risk 9trate8yfor this portfolio Is medlum. Th8 LGTWeAllh Management porrfolio is reported within unrestrlcted lunds. The risk 5traiogyforthis portfo0 Is low. Tb8 portlolio wos eablIshed In the y8arfrom funds ihat were prevlously heid as term deposits. Reservos Pollcy It is th8 policy of the Group to maintaln free reserves, whlch are th8 unre3tricte(J ftlnds of the Group after deducting the tangible fixed assets. at a level that exceeds thiee months unre3tri¢led expenditure. At 31 Ociober 2024 the unrestricted re3erve8 gre £6.163kagaln5t an average quarterlyexp8nditure irb FY2324 of E2.511 k. Thls reserve3 policy provid88 8ufflci8nt funds to eovèi manogemeni and adminislr8tion, and support costs and to respond to 8ny emergenclès that m8y arls£. Th8Tru5teesore al80 cogrblsant Dfth8 long.tgrm m8inianAnce and capacity requlrement5 of the Library, expenditure on whlcl can ts8 substantlal In comparlson io Indlvldualyears. surplus8S. Rl8k Man8goment The Trustees utllise the Fgculty wlde I18k m8Tragem8nr strttiegy to Inform thelr approach to Faculty Fund5 $pecillc rlsk expoyure which comprises: A F8cultywi¢Je risk rogi8ter used to id8ntlfy8nd revlew the key r13ks th8t the F8¢ulty Fund mayface. The establishment anij mairten8nce olcontrols by wayof systems and procedure8 to mitigate the key rlsk8thet have been Identllied. The implementation of procadurès deslgned to minlmlge any potenti81 ri3k to the Fa¢uLty ol Advocate8 ahouid the r13ks materlollse. The testlngof key controlsfor 8dequ8cy and efleciivenegs lo Inform revlew. Whlle key rlsks hav8 been captured and agr89d across tha Faculty structure, there 1$ furthar woik undeway to enhance owngrship and under$tgndlng of Impact gn¢J likelihood to producè high level risk proflle iatlngs. This will be bntormgd by v$riotJ$ data polnts golng forward and reported through the Audit 8nd Rick Commirtee, FSL Bo8rd 8nd F8cuIty Coun¢ll. Th8 m81n risks Identitled durlngthe perlou Involved the followlng.. Financial risks includlng SLJfflclent C8pIt81 Liquidity and ad8qUate expenditure monitorlng to ensure resources support Faculty, services and st[tegiC operation81 projects. Governance efficieTrcy where there Is 8 5trstegic risk that unc(e8r decision-rnaking or allocation ol responsibilities can result in poor decision maklng, a iackof responsibility 8cGountgbilityor decisions being made outside assurned deleggted gulhorities. Adequate and 8ffective control framework.. Risk that contro13 are not reflectlve of new processes or tested regularly therefore unable to prevent or detect issue3. The robu$tness of IT systerns: Technical obsolesceneè 8nd rebsnce on a narrow support base as well as th8 growing cyber $o¢urtty ndSCape.
THE FACULTY OFADVOCATES FACULTY FUNDS ANNUAL REPORT OF THETRVSTEES Icontlnued} Fortho year ènded 31 O¢tob¢r 2024 R+sk man8i•mont Icontinuedl ALI risks 8r8 revièwed at least onnually ttut generally monitored on 8n ongoing basis. This ensures strategies £nd plans are devised and updated to reduce their impact onthe runningol the orgBni3ation. Plans for iuturg perlod$ In response to the contlnulng challenglng &conomie ttorKlitions 8en&rally. tho Services provided to member3 bythe Faculty are 3ubject to ongolng revlew. The Faculty is confident that its continuing robust finances engble it the Ilexibilityto as8es5 carefully threats 8s they arlse. and to makg 8ny appropri8te str8tewc and operational adjustments in a considered and tlmeous manner. R?for•nee and admlnlstrgtlve Inform•tlon The Faculty of Advocates ¢an trace its records back as fai 8$ 1532. The Faculty Funds 58 reglstered wllh the Office of the ScottSsh Chgrlty Regulator under charity number SC010773. Detai13 01 the Trustees who acied durlng the year and the curreni Trustees anij 8dvisers to the Foculty Funds ere provided on pag8 1. Siructyr•. Governanogand Msn4gm•nt The Faculty Fun¢Js Is aumlnistered by w8y of a Trust deed of 3 March 1976. The admlnlstration ol tha Faculty Fund8 1$ vest8d in Lh# Trustee8118ted on p8ge 1. The conduct of the gff8irs ol the Faculty Funds Is ¢8rried on by the Offlc8-Bearers athsng under m8ndsl8 pa899d mornbers In gener81 meeting of the Faculty ofAdvocaies. Thg Offica-8eorors aro 05318ted in the conduct ol the F¢iculty Funds, 8flBlrs bythe F8cuIty Council consisting of the 8leet8d Office-B9arers ond ten Council members elected by sacret ballot and repregeniBtive of v£rious congtltuenc188 Wthin the membership of the F8¢ulty. The Faculty Funds own3 100% 01 thè IBsued share capltgl of Faculty SèNtce8 Llmlted I'FSL'I, a company whose registered off lee is Advoe8ta5 LibrBry, Parliament House, Edinburgh EH1 1RF. FSL recorded 8 profit after laxaiion for the year ot £143.84612023.' £480,915). During the year FSL pai¢J rent of £180,00012023: E180.0001 to the F8¢uI¢y Funds. Net a33etg ol FSL aro £742,00212023'. £598.1561 A Deed of Covenant exist3 between FSL and thg Faculty Funds. Th18 deed Allows surpluslunds in FSL to be donated to Faculty Fund3 and for thedonallon to be allowed as at£xable deduction In FSL. The timing of thed6duction against 18x*)ble profits 13 3ubject io when the donaiion is pald over. As FSL1s wholly ownB(J by the F8culty Funds, it has up io nine months after the end ol It3 8¢¢ounting perlod to make It5 Gift Ald payment to the Faculty Funds. Payments made more th8n nine months alter rhe end otthe a¢countlng period will be deducted In the accountlng period they are paid. In 2024, FSLdonated £nll12023: £225,000). Feculty Fund5 debtorwith FSL 15 £311,55712023,' £46,066) and tr8dingactiviiythroughouttheyear was £265,49112023.. £46,066) which included rech8rge8 lo members le.g. moblle phones, stationery). sglary rech8rges 8fKJ professional tg8$. The Trustees dBlegate ij8y to day m8nagemellt of the Faculty Funds to a group comprising the Co-chief Executive OlfiLers, Heads of Department: IT. Flnance, Libr8ry, Subgciiber SeNices and HR, 8nd the Faculty Suporlntendant. Pay and remunerofion for these InaNlduals is Set by reference io gn or8anisation-wide 8rading scale, e9tabll$hed many years ago Sn ¢onjunctlon wlth Hays Group 8nd reviewed annually by the Faculty Finance Commlttee, 08 & constituent of Ihe Joint Employeis ol The Feculty Funds 8nd FSL. Thè current b8nchmark In respect of market retsted pay 15 the medlan of the publlc sector. The Head of HR 1$ responsibleforresesrching tho mArket and inlormingthe review budyof av8ilableoptlons. iakjngaccount of Inflatlon factors, Llvlngwage, b8n¢hmarking bugine33 8ffoidability conslderstions. Trustee Induetlon 8nd training All Twstees receive an induction to the Faculty of Advocates that describes the activltie$ of the Faculty Funds. the Memb@rs' Fund and FSL. Trustees 8re s81ected on the basls of thgir exten8ive knowledge end experience in comtnerce and, In respect olAdvDcateiiustees. their knowled88 and experience of legal mutters as it relgt¢s to the legal profession inscotland. the UK and globally.
THE FACULTY OF ADVOCATES FACULTY FUNDS ANNUAL REPORT OF THE TRUSTEES leontlnued) Forthe y04reDdgd 31 Octob•r 2024 Tw¥t¢e Inductlon and trainin8 Icontinu¢dl AS always. we would wlsh to lake ihls opportunity to thank all our employees for their continued commitm8nt and hard workdurinEthe last year: their efforts &r8 much appreciated. older ol the Trustpcs Treasurer Dalg: 23 Octobor2025
THE FACULTYOFADVOCATES FACULTY FUNDS STATEMENT OFTRU5TEES' RESPONSIBIUTIES For th8 year ondad 31 Octobor 2024 rhg Trustees are responsible for pTopariTh& the Report of the Tru8t88s a1 Ihe gccounts in acoordance with applicable law and Vnlted Kingdom Accounting Standards lUnad Kingdom Ggnerally Accepted Accounting Practicel. The law epplicable to charrties in Scotland requlre5 the Trustees to prepar8 accounts for each financial year which give a true and fairview of the state of affairs olthe group and charlty gnd of the IncDming resource$ 8nd applicgtion ot resource8 of the group an¢ charity lorthot period. In pr8P8ringthese accounts, the Trustees Ere reqLJired to.. select sultoble accountlng policles 8nd applythern conslstently observelhè methods 8nd Pfinclples in th8 Charities atQMenl of Recornmended Practice ISORP FRS 1021 make judgérnent8 and 08tim8te$ that are reasonable ynd prudent State whether opplicable accounting standards have been tollow84, subject to Any material (Jeparture$ disclosed and explained in the accounts, and prepor8the account8 onthegoln8 concern ba5isunle58 It18 in8ppropilateto presumethatthe group And charlty will comlnue in operation. The Trustees are responsible for keèplng proper accountlnd recor¢Js Ih8t disclose wth reoson8ble accuracy 8t any tlme the fln8ncial posliion ol thè group and eh8rlty and gnable them to en3ure that the o¢counts comply wlth the Ch8rltleg and Trustee Investment Iscotlandl Act 2005, the Chgritie3 Accounts IScot18nQl Regulations 2006 18$ amendedl the prov151oTrs of the charity's constitutlgn. They gra 81so respon8ible loi $gfaguardingthe assets of th6 group 8nd charlty gnd hence for iaklng r8Asonable steps for the prevtntlon arKI detectlon of fraud and other IeSlarItIeS.
THE FACULTY OFADVOCATES FACULTY FUNDS CONSOLIOATED STATEMENT OF FINANCIAL ACTivrriES Forthe y•ar ended 31 O¢tob¢r 2024 Unr88tricted Restricted funds funds Tot8L 2024 Total 2023 Not• Income and Endowmgnts from: Grants and donations Charitable activitie3 Trading actlvities Investment and other Income Galnlllossl on flxed asset Olsp05hl 148,738 4.434.623 5,493.199 707,701 226,198 374,936 4434,623 5,493.199 736.673 1.724,749 2.769.305 5.326,145 665,460 843,058 26.972 15 TOTAL INCOME 10,784.261 255.170 11,039,481 11.328,717 Expondttur• on: RAiging funds- investment man8g8rfe8$ Ch8ritkble activlllas Oper8tion81 & other costs Tr8ding activitlas 32,458 2,754.820 2,123,118 5,120,816 10,090 133.500 21,887 42.548 2.888,320 2.145,005 5,120,816 22.203 2,651,140 1,788.676 4,624,818 10 TOTAL EXPENDITUAE 10,031,212 185,477 10,196,689 9.086.837 Net ialn•lll03s•¥1 on 1nvejtmts Reali3ed Unreali3ed 16 16 43,954 139,118 6,481 120,596 50,435 259.714 4,042 50,977 N•t kncom•lllossl 936.121 216,770 1,152,891 2.296,899 Oth•r r•co8nlsod ialnilllo#è): Corporation tax Ichargellcredit ActL¢arlal g8in I Ilossp41 on detin8d b8nef pension scheme 13 148,5341 1601.0001 148.5341 1601,0001 140,4941 1394,0001 N•t movement In fvnds 286,587 216,770 503.357 1,882,405 TotoLlund8 brouihtforw&rd Reserve transfer In year 8,835,694 1,094.094 9,929,788 8.067,388 19 Yotfil lund• carrl•d torward 9,122,281 1 310 864 10,433,145 9.929 788 All incoming re3our¢e8 are derlved from continuing8ctDiltSeg. The not$8 on pages 13 to 34 lomi part ol these 8cc¢xJnts
THE FACULTY OF ADVOCATES FACULTY FUNDS FACULTY FUNDS STATEMENT OF FINANCIAL ACTIVITIES Forth• year and 31 Octobar2024 Unre$trlcled R•strlcted Funds Funds 2024 Ttstal 2023 Total Not Income and Er#lowmonts f¥om: Granis and donations Cheritable activitles Investment and other Income GoiTrl1108sI on fLxed 8ssel dlsposel 148,738 4,614.623 707,701 226,198 374,936 4,614,623 736,673 1,949,749 2,949,305 665,244 843,194 28.972 16 Total Incom• 5,471.062 255,170 5.726,232 8.407,492 Expendllur• on: RalsinglurnLYs- InveStnnt manager fees Charit8ble activliSes Operatlonal & Oiher cost8 32.458 2,754,820 2.123,118 10.090 42.548 133,5CQ 2.888,320 21,887 2,145,005 22,203 2.651,140 1.788,676 10 Total expondhur 4,910.396 165.477 S.075.873 4,462.019 N•t IalmllloovI on Invutments Reallse Unreallsed 18 18 43,954 139,118 8,481 120,596 SO.435 259,714 4.042 50.977 Not Incom•lllo•8} 743.738 216,770 2 000,492 Oth•r recognla•d Kalnslllog8•91: Aciuarlal g81ns 1 Ilossesl on defined beneflt pension 3Gheme 1601.0001 1601,0001 1394,0001 Net movtsmgnt In fund¥ 142.738 216,770 359.508 1,606.492 Total funds brouRffit lorward Rttsorye transfer In year 8.237,840 1.094.094 9,331,734 7,725,242 Total lund* ojrrled tonvard 8.380,378 1.310.864 9.691.242 9,331 734 AIL Incoming resource3 are der6v¢d from contlnulng actlvrtles. The not88 on p8ge8 13 to 34 form part ofthege 8ccount8 10
THE FACULTY OF ADVOCATES FACULTYFUNDS GONSOUDATED AND FACULTY FUNDS BALANCE SHEET At 31 OGtober 2024 2024 Group 2024 Faculty Funds 2023 Group 2023 F8cuity Funds Notej Flxod assets Heritag8 assets Tangible fixed assets Investments 14 15 18 115.443 2,843.852 5,640,995 115.443 2,706.591 5,641,09S 105.443 2,718.005 5.231.694 105.443 2.552,204 5.231,794 8,600,290 8,462.129 8,055,142 7,889,441 CuTh?nt a55els StDck3 foi resale Debtors Cash ot bank and In hand 13.818 488,422 6.238,450 13,818 628,946 1,140,001 13,957 533,917 5.444.749 13,957 430,269 1,643,980 17 6,740,690 1782,765 5.992,623 2,088.196 Crlt08. Amounts falLln8 duewtthln on• y•ar 14,884.8391 1554.6521 14,098,418) 164S,9031 N•t eurr4ni A$#•l• 1.855,851 1,228.113 1,894,205 1.442,293 Totsl 0••otJ l•$* eurr•nt iIAbllltlo8 10 456.141 9,691,242 9,949.347 9,331.734 Deferred tBxatlon 122,9961 119,5591 10,433,145 9,691,242 9,929.788 9,331,734 Unrestricted funds R8Strlcied fun(J8 19 9.122,281 1,310.864 8,380,378 1,310,864 8.835,694 1,094.094 .237.640 1.094.094 10,433,145 9,691,242 9,929,788 9.331.734 Apprnvg.d hythp. 8n8rd of TruBtees nd yign8d of ttyllr behalf by. Treasurer Date.. 23 OctQDei 2025 The not8s on pages 13 to 34 form part of these accounrs.
THE FACULTf OFADVOCATES FACULTY FUNDS CASH FLOWSTATEMENT Fortheye&r ¢nded 31 OGtober 2024 Group 2024 2023 Ntstes Cash flow from op8ratingaciivltles Returns on investments and setvlclng of linenc8 linvegting 8¢tlvitiesl Capllal expendiiure and financlal Investmont (investing acilvitiesl 1,179,253 2,511.513 176.646 92.500 1607.0471 13,219,383) 26 26 In¢rg88e/ldecrea881 In cgsh In the period 748.852 615,370 Reconciliation ol n8t cash flowto movemenr In net funds IDecre88eyiner888e in cash Inthe period Cggh and cash eouivalentg brought forw8rd 748.852 5,514.103 1615,3701 6,129.473 Cash 8nd cash equivolents carrled lorw8rd 6,262,954 5.514.103 Analy•l• of c88h and caih equlvolontl Cash at b8nk And in hgnd Cash Account in Investment portlouo 6,238,450 24,504 5,444,749 69,354 6.262,954 5 S14,103 Faculty Fund 2024 2023 Not•• Ca8h Ilowfiorn operating8cfivltle8 Returna on investments and servicing of fln8n¢e Ilnvesiing actlvltl881 Ck)pitolexpenditure and fin8nci81 investment linvestlng actlvltlesl 1158,3171 944,6 133,364 92,284 1523.8761 13,125,0fj61 26 26 Incr888elldeereDsel in cash In tho perlod 1548,8291 12.088.092) Recon¢iLiatlon of ngt C8Bh flowto movement in net funds IDecre8selllncr8gse In c8sh Ilbthe period Cash gnij cash equivalents brought lorw8rcJ 1548,8291 12,088,092) 1,713,334 3,601,426 C83h and c£sh equN8lents e8rried forw8rd 1,164,505 1,713,3S4 Analy$l¥ of cash and Cash equlv8l•nti Cash at bank and in han Cash arcounl in Investment portrollo 1,140,001 24,504 1.643.980 69.354 1,164,505 1,713.334 The notas on pages 13 to 34 fomi port of the88 accounts 12
THE FACULTY OF ADVOCATES FACULTY FUND5 NOTESTOTHE ACCOUNTS Forthe year ended 81 OGtc+ber2024 Purposes of Trusts lal By Oeclaration of Trust dated 3 March 1976 th8 asgetg and monies held for The Faculty OtAdvoc8tes Bnd tts rnember5 were formally separated into two parts. the first tD be held Bs "The Faculty Funds" and the seco1 to be held as-The Members. Fund. Under the terms ol the Declaiation of TIu3t the heiitable pioperties, fe duties, inve3tments. books End (Jocumenls weie designated as constituting 'Tho Faculty Fund8~ and the baLaTrce ol the property 88 con5titutSng"The Mernbers, Fund. The Faculty Fund3 hasthe Status of 8 ¢harltyfortex purposes. {bl Th8 Lord Reid Bequest Fund provlded scholarship gwards to rneritoriou$ Intrant$to the Bar duringtheir period ol puplllage. Due to Sts Ilmlt8d scale, the Lord Reid Bequest Fund struggled to 8ehipve a viable investment strategy in the f8¢0 of prolonged period of dAprp.88ed interest rates. A8 8 re.8ult, the fund w8s merged wrth the Scholarship Fund Ilurln8 2016. The merged lund now makes awards In the name of both Lord Relu and F8cuIty Scholarships. 2, AccountlngpoUcl•8 {a> The accounts have been prepared under the hlstorlcol ¢09t ¢onventlon wlth Items recognlsed gt cost or tron$actlon value unle9S Othetwiso stated in ihè ral£v8nt notos to these occounts. Thg 8ccount8 have been prepared In gecordance with the Statèm8nt ol Recommendeij Practlce.. Accounting 8nd R8POrtlng by Charitles pr8p8rlng ihelr accounis in accord8nce with the FinsnC181 Reporting siand8rd appllcahlp In the UK nd Republic ol Ireland IFRS 1021 (second odition- October 20191 and the Financlgl Reponing standard applicable in the Unii(Jd Klngdom and Republlc ot Ire18nd IFRS 1021, the Ch8rltle8 and Trusiee Investment Iscotlandl Act 2005 ana the Charltles Accounts IScotianQl Regui£tlons 2006188 amended). The Faculty Fund8 constitute a pubuc benefit entity 88 dellned by FFIS 102, rhe consolidated Statement of Fin8nc181Activitle3 and B818nee Stte include the tlnanclel 8t8ttmorbts ol th9 Faculty of Advocates Faculty Funds 8nd it9 3ub8idiory undertoking, Faculty SeNices Limit8d mad8 UP t¢ tha bolance 3heet date. Introgroup 881es and profit8 are ellmlnatad lully on consolldation. Following the implementation ol the Oecl8ration ol TnJ8t, on 3" March 1976. Th8 FBculty of Advocates Members, Fund was established to operatethe non-eh8rit8b18function otThe Faculiy of Advocates whllstthe charit8ble function was incorporated into The F8¢ulty of Advoo8te$ Faculty Funds Iregist8red ¢harlty SC0107731. Owing to mutual Offic8 Bearers lexcludlng Indepencjent iru8tees withln The Faculty of Advocaies F8¢uiiy Funds) The F8cully of AdvocBte8 Mewnber5' Fund 2nd The Faculty ol Advoc8te8 Faculty Funds 8ie subject to common control but neither bodycontrols the othei. The Faculty of Advocates Faculty Funds fully controls it$ wholly owned trading 3ub3idiary FacultyServSces Llmlted Icomp&ny rewstration SC0482611. Previously the Facutty of Advocate3 Feculty Fun(l$ stotutory IlnEnciel statements were prep8rod for tha charity only Wih no group 8ccounts prepared. The Tru9tees having reviewod the over811 8tructure and ownerghip h£ve nowprepared group accounts forthtrye8rto 31 October 2023 and the comp8r8tive perio(J to 31 October 2022. The accounts Ere presentèd pounds sterlSng whlch is the functional currencyotthe charr(y. {b) Fun¢Js are classified 98 elth8r restrlcted lunds or unrestricred funds. Restrie0 YurKJ$ are funds which must be useQ for particular purposes and actlvltles. The Lord Hope Scholarship Fund and Facultyscholarshlp Fund are classifiesj as re8tricted funds, the purpose of the funds is to provide scholarships to Advocates in tralnSng that may not be able to receive the 58me level of fundingthemselves. ALipaymeNts are gi the dlscreiion oythe Board. Unrestricted fund5 are expendable at
tho discretion of the Tnjstees in fiJrther8nee of the objects of the Faculty of Advocates. The General Fund 18 the prluct of surpluses acCuml8ted each year. The Library Archiving Project restricted luncl was cr8aied when the Faculty of Advocates 1985 Trust grBnted funds for tho initiation of a project to employ a qualified archivist to organise r8cords and other m8teri8ls in stor8ge and draw up policy and procedure documents 10 8uSde the Facuiiy In pro88rving both legally required papers 8nd items of historic significance. The project also 81mS to meke hi5toiically importallt documents more widely aece8sible tothe public. Ic) All income is recognised once the charity has entitlèm8nt to the income, rt is probab16th8t tho income will be receivecl andthe amount of income re¢elvable can b8 me8sur8d r81iably. Trading income through Facuiry Services Limltelj arlses from the provislon of Sewices in ro8P8Ct of the ompany's pilnclpal actlvltlÉs. It Is m8b8ured at the f81r v8lue of th8 consideration received based on subscriber collections L¥r rec8lvable for mlnlmum contribution5, excludingvalue added t8x, lor the provislon of Such services. Cgntrlbutlons for the use of faclllties from Members. Funds relate to conirlbutlons to meet the onaolng urniestricted deylclt ot the Faculty Fun(fg 8Bch year to the 8>tent th81 th8 Members, Funds have generateo sufficient ineome to meat thi8 deficit. FolLowing PBym8nt of the contribution. any cem8ining surplus reporTed in tha Member$. Funds accounts is pald to Faculty Fund8 byway of 8 donation. Rental Incom818 feco8nlsed In 8cewd8nct with rent r8ceiv8ble perthe lease agreem¢nt8. Interest on tunds held on dep081t ly included when iecelv8ble and the amount can b8 measurod iellBbly. Divldencls are iecognlsed once the dividend h£s been d8elgr8d and notlfic8tion has b88n received of the dlvidend du¢. Idl Expondituro 1$ Included on an 8ccruels ba¥ls excludlng value added tax and Is recogni98d when there 18 legal and constructivc oblectlve to Pay for expeTrJituie. Ail costs, Includlng staff iermln8tlon payments, h8ve been dlroctly £ttribtJtod to one of the function81 c8le8orle5 of resource& expended In the Statemeni or FiTh8n¢ialActivitie8. The c08t of rgisingftjnds con91gt$of investmant managem¢ntfee8. The operatlng C091s of The Faculty of Advocates have been allocated on thè b8818 018n e$tlm&te of the time spent by Staff on relevant dutleg and the nature of the non-staff exponditure Incurred. Governance costs comprlse tho CO8t8 of runnln8 the ch8rrty. Inclu(Jlng str8ttgic plannlng for itg future delOpMent, and Ihe cosi8 of eytern81 audlt. lel Buildingg. oquipment, furniture and litting8 are shown 8t cost orv8lu8tlon less clepreclatlon. Deprg¢18tion is provlded on fixed a88et8 a9 folLow8'. Furniturè and flttings 10Vo 9tl8lght Ilne Bulldlngs 2% slr8lght line Le£5ehold Improvements Computer equipment 25% sir8ight line Plant and equipment 5% 3trBight line 2-7% 8tr8ight line, depeIent on tho period of the le85e No depreclaiion18 provided on land. No depreciation h88 b88n provl¢JerJ tsn herltage asset5. Ig} The Faculty Funds, haritage as8et$ comprise ol work8 018rt anrl books held in Parliament Squarè. Those asgets acquired during the year are reflected in the balance sheet. The remain¢er ol the a$set$ Thave been acquired duringthe Faculty of Advocates. 8X15tence 8nd there is no reliable cosi information or appropriate method of valuing these 8888ts. The cost8 a880Cl8led with trwng to attain valuations woul¢J be onerous compared to th8 additiona tyenetits deriv8d by the Faculty ol Advoc8te$ and the user5 of these accounts. The cost of any repalr work undertaken is reported in the St8lem8nt of Fin8ncial Activirie5 in the year It 1$ incurred. The cost of 8ny ad(Ji1ion8lworks purehas8d is reported in the Statement of FinsncialAotivrties In the year it is incurred. 14
THE FACULTY OF ADVOCATES FACULTY FUNDS
NOTESTO THE ACCOUNTS Icontlnugdl
For thg ygargnded 31 O¢ttsber 2024
2. A¢¢ountrngpoLlcles Icontlnuedl
{h) Investmgnts are ?form of b851¢ fin8nelal instrument and are initially recognised 8tthelrtrans81on value and
subsequently measured at theirfairvalue as at the balance sheet date usingthe closingouoled marketprice.
The Statement of Firancial Activities includes the net gains ond losses arising on revaluation and disposals
throghoul the year.
Shares In the subsidlary undertaklng are Included at C05t. Group account5 ore separately prepared
InLUIPU1811ng th8 results ol Ihe sJbsldidry underlaking.
The main form of flnanclal risk facod bythe Fa¢ultyFund$ Is that of volatillty in equity markets and investment
market9 duo to wider economic conditlons. the attitude of investors to Inve8tm&nt risk, and changes In
sentiment conceming equitie8 and wlthln pgrticular sectors or sub sectors.
All galn$ and 1089ès 816 18k8n io the Statement of FSnanciol Activitias as they Arise. RAalis8(J galns and losses
on Snvagtmènts gre e8lcLJIAted As ihe differen¢& between $918$ proceeds and their openlng carryin8 value or
their purchase value It aeqLJired subs8quent to the first <Jay of Ine tlnan¢lal yeBr. Unreallsed galns an¢J losses
ar8 c8lculatecJ 88 the dlfferen¢e beiweell the f81r value 81 the yearenQ 8nd Ihelr c8rryin8 value.
rcod8 Bnd other debtors are recogni5e(J 8t Ihe 8etllemeni amount due after any dlscouni offer¢d.
Prepayments Bre valued atth8 amount prepald net of 8ny¢Jlscounts due.
{kl Cosh at bank ond in hand Includc8 cosh and ghoritorm hlghly liquld InvostmontBWith 8 short maturrtyolthr80
months or1883 from tho dato ot 8CqUl8ltion or openlrng ofthe deposlt or slmiiar bc¢ount.
Creditors and provisions ore iecogni8ed wheie the Faculty Funds has a pTe8tsnt obllg8tlorn iesuiiing from 8
Pgst ev&ni that will prob8bly result In the tIBn8fpr ot tund$ to g thlrd p8ry gnd the Bmouni due to settle the
obligation CAn be meosured or estimated r81i8bly. Cre
THE FACULTh OFADVOCATES FACULTY FUNDS NOTESTOTHE ACCOUNTS {Gontlnuedl Forthe Or ended 31 October 2024 3. Slgniticantludgements and estlmailon un¢ertalnty Icontlnuedl that are considered to b8 rolevant, actual results MBY differ Irom thè8e tlmateS. The e8timates arKJ underlying 8ssumptiorns are ieviewed on 8n ongoinll basis. The estlmates and assumptions thgt havé a signitlC8nt rl$k of causlng 8 mat8ri81 adjustment to the carrying omount5 of assets and 118bilities within th8 next finane181ye9r gre oddre8$ed below- Useful economlc Ilves of tangibi8 a888ts The annual depreclation charge for t8ngiblo assets Is sensltive to changes In the estimated useful economl lfves and resldual valugs of the 88sets. The useful ecornomlc Ilves and res*Jual values are re-assessed Bnnually. See note 14 forcarrying amount8 01 iBnglble assets. {bl Non recognltlon of pension surplu8 The defined b8netit pension gcherne sUlUS has not been iectsgnised b8ged on ?¢tuary's [danC. Theasset cannot be agterminable, Ih8ratoro It h89 been ¢apped to £nll. Staff cost8 and number8 Sioff ¢o¥ts: 2024 Group 2024 Faculty Funds 2023 Group 2023 Faculty Funds WBges tsrtd sal8ries Social security c08t3 Medic£1 insurarbce Other pension eo8t8 Staff costs FRS 102 lalrv8(ue edjustmgnt- net interest coat8 5,465,634 2.277,049 4.749,251 1.837,d77 512,096 209.780 480,384 186,348 166,686 115,552 1 $0,948 77,524 476,068 187,2B7 386.984 149.922 6,620,482 2,789,668 5.767.567 2,251,271 1601,0001 1601,0001 1394.0001 1394.0001 6,019,482 2,188,668 5.373,567 1.8S7,271 Key Group management personnel compri98 the Trustea$, the CEO andlor joint CEOS, an¢ Hgads ol Departm8ni- IT, Finance, Llbrary, Subscrlber Services And HR. and the Facutty Superlntgndent. Total r8rnuneratlon of key management persr)nnel in the year for Group was E737,55912023.. £605,270) alld f Faculty Funds it £329,89512023: £281,730) No Advocate Tru3tee or elected Offlclal ol the Faculty of Aavocateg Facully Funds rec8fv8d remuneratlon or reimbursement ol expen5e3 durlng the ye8f or ihe prevlous year. Th9 Independent Trustees esch recefved romuner8tion of £5,000, a total of £10,000 in 202412023 £10,000). These tl8ures 8re Included in th8 totals above. Staff numb#r¥ 2024 Group 2024 Faculty Funds Number 2023 Group 2023 Fgculty Funds Number Employaes whose annu81 emolumentg ex¢eeded £60,000 Numbor Number Between E60.000 an(1 £69.999 Between £70.DOO end £79,999 Between E80,000 ano £89,999 Between £90,000 8n¢ £99.999 Betwèen £100,000 Bnd £110,000 Between £110,000 ond £120,000 Betwoen £120,000 and £129,999 16
THE FACULTY OF ADVOCATES FACULTY FUNDS NOTES TO THEACCOUNTS (Continued) Forthe y$or gnded 31 Octobar 2024 The average monthly number of employee$ durlngthe year Library Clerknng Subgcribersemces IT Facilities Admini$rration 19 17 16 16 16 14 33 32 10 19 21 24 31 24 18 Totol 143 67 141 S. Granti and Donatlofis 2024 2023 Oroup Unrestricted R83trlcted Totel Tot81 Membets. Fund Indivldual Advocoteg GrBnts 142.738 142,738 1,622,736 226,198 91,513 6.000 10,500 226,198 6,000 Totgl 148,738 226.198 374,936 1,724,749 Faculty Funds 2024 TotBI 2023 Total Unresirlcied Restrlcted Mambers, Fund Indivlduèl Advocate5 FBcultySetvlces Llrnlted Grantg 142,738 142,738 1,622,736 226,198 91,513 225,000 10,500 226,198 6,000 8,000 Tot81 148,738 226.198 374,936 1,949,749 8. CharltabL• A¢tlvltl•8 Incom• 2024 Total 2023 Total Group Unrestricted Restrlcted ContiSbuiion from Membprs, Fund- gen8r81 Leg81 educBtion & other income Rental Income 4.424,197 10,426 4.424,197 10.426 2,758,730 10.575 Toial 4,434,623 4,434,623 2,769.305 2024 Totgl 2023 Total Faculty Fund¥ Unrestri¢ted Restrlcted Contribution from Members, Fund - general Leg81 education & other incom8 RentBI Income 4,424,197 10,426 1 eo,000 4,424,197 10,426 180,000 2,758,730 10,575 180,000 TotBI 4.614.623 4,614,623 2,949,305 17
THE FACULTh OF ADVOCATES FACULTY FUNDS NOTES TO THE ACCOUNTS Icontlnuedl For tha y88r endod 31 O¢Ytobor 2024 7. Tradlng acti¥ltl•g-Group only Ti8dlng actlvllles are uniJert8ken by Faculty SeNices Limited and are attributed to 88n8ralfunds. 2024 Totgl 2023 Total Incom• unresir18d Restrleted Commisslon Photocopying services Other income 5,440,988 2.024 50,187 5.440,988 2.024 50,187 5,276,937 ,449 42,759 5,493.199 5,493.199 5.326.145 2024 Toial 2023 Tot81 Expondlturè Unre8trleted Re8trl¢ted stgff coyt3 DepYecl8tion Othar opgrgting charges 3,830,814 64,437 1.225,665 3,830,814 64.437 1,225,565 3,516.296 87.008 1,021,514 5.120,816 5.120.816 4.624,818 8. Invg¥tment & other Incom• Group 2024 Totol 2023 Total Unrestricted Rosirlcte¢J Investment Incorne Contributlctn from M8mbar$' Fund- Ilbrery Other Income 104,392 601.209 2.100 28.972 133.364 601.209 2.100 92,500 529,854 43,106 Total 707,701 28,972 736.673 665,460 Fa¢ultyFund8 2024 Total 2023 Totgl Unwestricte R88trlcted Investmenl income Contrlbution from Mernbers. Fund Ilbr8ry Other income 104.392 601.209 2,100 28.972 133.364 601,209 2,100 92,284 529,854 43,106 Total 707.701 28,972 736,673 665,244 . Charltabla Actlvitl88 w•ndlture-Oroup and Faculty Funds 2024 Total 2023 Total Unrestrleted Restricted Diioctstaff costs Book5 end PLJblicatioTrs Grant awards Legal education Building malntenance 1.072,882 609.913 8,O¢XI 187,762 876,263 1,072,B82 61)9,913 141.500 187,762 876,263 1,008.181 583.240 117.500 120.853 821.366 133,500 Total 2,754,820 133.500 2,888.320 2.651,140 18
THE FACULTY OF ADVOCATE5FACULTY FUNDS NOTES TO THEACCOUNTS Icontlnuedl Forihe year ended 31 October 2024 10, Opor8tlonol •nd othar Go$ts-Group and Faculty Funds 2024 Tot81 2023 Tot81 Support Govorn8nce Other costs 1,983.959 137,491 23.555 1.690,481 64,642 33,553 Total 2,145.005 1.788.876 Other costs represent the cost ol goods sold in thé year. 11. Support gnd Governanco co•to-Group and Faculty Funds 2024 Total 2023 Total Support GoveTnance Staff c08t8 Rent of buildings Stotionory & printing Computer software, 8oNlceg 8nd consurnBble8 Professional fees Audit & accountoncyfea8 Irrecoversble vat due to partlal exemptlon Other cost¥ 1.061,545 106,536 19.602 354.787 181,236 54,241 1,115,786 106,536 19,602 354,787 181,236 83.250 46.013 214.240 849,090 113,516 79,382 268,62S 111,367 31,608 36,648 264,886 B3,250 46,013 214,240 Tot81 1,983,959 137.491 2.121.450 1,755,123 12. Cost of audlt gnd other servl¢•s 2024 Group 2024 Faculty Funds 2023 Group 2023 Faculty Fund Aud5tor'8 r8mun8r8tlon CCfnprlse8'. Audli Non-audlt servic88 137,750 17,500 76.000 7.2SO 47.913 9.545 31,608 155.250 83,250 57,458 31.608 19
TrIE FACULTY OFADVOCATES FACULTY FUNDS NOTES TO THE ACCOUNTS {Gontlnuedl Forthe year¢ndod 31 October 2024 13. Taxotlon on ordlnaryoGtlvltlos l Analygls ot ¢h4rqe In the year 2024 2023 Current lax char el credlri.. UK Corpor8iion tsx based on the resultgforttte year 8125%12023- 22.5%) Adjusiments in respect of previous period8 Toial current t8x ch8rgelleredrtl 45.097 20,935 45,097 20.935 Deferred tax chargel crediri.. Orlginaiion and reversal of Ilffllngditterenees (note 4bl Adju8tfflents In respect ol prlor perlods Total deferred tax chargellcredltl 3.437 19,559 3,437 19,559 Tax chargellcredltl on proltt on ordinary 8Ctwitieg 48.534 40.494 Ib) Factor¥ 8ffBctlngcurr•nt tax chary• 2024 2023 Profit on ordlnary 8¢tltIeS before t8xation- F8culty Servlce8 Limlted 192,380 521,409 Proflt on ordinary actlvltle8 by rate ol tax Flxed oss£t perm8n8ni dirrerencos Expenses not deductlblè for tax Pufposod Adlusimènt5 to brought Itxwerd values Margin81 relief Adjustments in respect ol previous periods- current tax Aijlustments In respect of previou8 p8riods- deferred tax Deferred tax rate changes Mowement in tjelerred tax not recognlsed 48,095 117.410 17841 439 150,6651 12681 4,934 130.1331 TotEI curronttax (note 131811 48,534 0.494 14. Herftage a*¥•t8- Group and Faculty Funds Cotyt and N•t bookvJiu• 2020 57,718 4.500 62.218 2021 62,218 5.216 67.434 2022 67.434 2.149 69.583 2023 69,583 35.860 105.443 2024 105,443 10,000 115,443 Co81 Addltlons Net book valu8 20
THE FACULTY OF ADVOCATES FACULTY FUNDS NOTES TO THE ACCOUNTS l¢ontlnu9dl Fortheyear endad 31 Oetobtr 2024 Further Information Slnee 2014 Ihe Faculiy Funds have cornmissioned portralts whlch h2ve been included in heritage Essets at C03t. In addition, Ihe Faculty Funds hold a large collection of raie books and works of art. These 8ssets have been acquired durin8 the FaCUY of Advocates, existence elther through purchase or by donation. No recent valuations are 8V8i18ble forthese Items. There h8ve been no dlsposBls or Impairments. 15. TAh8lbio fix•d A•g91•- Grwp Fwnltur•& Ilttlnii COMpter •qulpm•nt L•••ghpld Vehlci•• lrnrKowm&nts EQprnt Bubldln Tot•1 eost orvlllu•tlon Al 31 Ociober2023 I,SW,364 1,304.506 89,826 1,609,070 365,600 6,592 1,317.923 16.4S4 2.045.82e 7,789,261 458,045 TransT•f8 018poi8L4 15.S921 Al 310¢t¢tyor2024 1 507519 1 874 332 1 87d 670 I,J34,387 2 045 826 .236.734 d•pr•¢l•tlon AI 31 OGiob•i 2023 Chsrge toiye8r 1,118,D65 58,4S7 1,203.990 24.512 1,407,610 129.d23 S,592 312.634 73.890 1.022.e85 40.916 .071,276 327,198 Diapo¥èl¥ (s$?) AtJl Ootob•r2024 1.176,522 1 220,502 1 SJ? 239 386.B24 1,063.BOI 5.392.082 N•t bookvalu• At 31 OctOb8r2024 .1.10.997 145.830 437.437 982.025 2 843 8S2 At 31 Oetob•r2o2a 388 299 100518 201 260 ?.004.9Bg l Q22 441 2 718 t)05 The Facultyof A£fvocatea F8¢uLty Funds. herltable propertleg wore valued In Docornbgr 1998 by Ryden. Int8rn8tlon81 Property Consultont3. on tha b09[$ ot open morketvolue. Ag a r8sult of the impairmant In the value of the propertlO8, the annu81 doprociation charga is £62.290 less than the charge on a hlstorl¢81 Cost b8sls. The Faculty of Advo¢8tes Faculty Funds ha8 taken 8dv8ntggt ol the option under FRS 102 to contlnue to use these valuations for accountlng Purposes. The Faculty Fund8 lease8 properties In Edinburgh 8nd Glasgow- the costs ol Leasehold lrnprovemeTrts in these building8 are Iregied 88 088ets held unoer operatinE leases 8nd Pie (J8preciated over the le85e 1grm. Asset$ previously reported within Bulldings 8nd Plant and Equipment, have been transf8rre¢J to Le8sehold Improvement$ In th8 current yBar. Depre¢iaiion ch£rged on Leasehold Improvement8 was £73,8901202S.. É69.4051. 21
THE FACULTY OF ADVOCATES FACULTY FUNDS NOTES TO THEACCOUNTS lcontlnuedl Forthe y8arend•d 31 Oetob8r2024 15. Tanglbieflxad a8S8ts- Faculty Funds PLllnt& FUrlr& E(wipmeni flttl Computer qqulpm&nt L•aqhold V•hiclo• frnwowmont• Bulldln Tot•l Cost orv4lts•tion At 31 OctOber2023 Additions 1.506.364 1,131.572 33,929 B59.574 36S,600 5,592 1.317.923 16.464 2.04S,826 6.866,861 417.148 Dl&poso 15,5921 15,sg21 Al 31 OctDbÈi2024 1.SD7 519 1 185 501 1.225.174 1 334 387 2 045 826 7.278 407 Accumui*t•d Al 31 O¢tobèiX123 ¢DJry• lory#ar Tr•n3ts 1,11B,085 58.457 1,Q92.124 8.975 7Sa,047 80.52S 5,592 212.934 73.8S0 I,V22.885 40.916 4.314.6d7 262.761 15.5921 At31 Octob•r2024 1 176 $22 1 701 089 849 $70 386 824 I D63 e01 4.571 18 l•t tropk v4lu• At 31 Ociobii2D24 330,997 64.402 J91,E04 8A7,563 982,025 2,706,591 At 31 Octobor2023 388 299 1004.989 1 D22 941 2 S52 20tl The Faculty ofAdvocale3 Faculty Fun¢Js' herlt8ble properties were valued in December 1998 by Ryden, Int8rn&tional Property Consultants, on Ihe basis of open market value. As 8 ie8uIt olthe ImpBiiment in the value ol tho prcpertle8. the annual depreci8tlon charge is £63,290 less th8n Ihe charge on 8 historical co$t basls. The Faculty OtAdvocates Foculty Funds ha8 tbken advgrttagè ol the ¢)ptlon unuer FFIS 102 to continue to use these v•lustlong for 8ceountSng purposes. The Faculty Funds leases prop8rt108 In Edlnburgh and Glasgow. the ¢08t5 of Le8sehol(J Improvernents In these bulldlnÉs 8re treated as 838ets held under oper81ing leases and are (Jepre¢i8ted ovei the 188se term. As8ets prevlou51y reported wlthln Buildlngs and Pl8nt and Equipment. have beentr8nsferred to Lea50hoid Improvemenis In the Current ypar. Deprec18tlon charg8d on Le85ehold lrnprovements was £73,89012023.. E69.4051. 22
THE FACULTY OF ADVOCATES FACULTY FUNDS NOTES TOTHE ACCOUNTS Icontlnuedl Fortheyear ended 31 October 2024 16. Investments- Group and FacultyFunds The Faculty of Advocates Faculty Funds owns 1tKJ% ol the ordingry gh8re capital of F8cuIty Services Limrted. company reSIered in Scotland. The £100 cost of this investment is included below. The prln¢ip818ctivit18y of Faculty SeNices Limited are the provision of clerlc81 seNices and collection of fee$ for Counsel. The remainder of the Investments are listed. Group and FaGuIty Funds 2024 2024 R03tricted fun FEcuIty Scholarship Totgl 2024 2023 Restricled fund Faculty Scholarship Tthal Unregtrlcted Funds Total Total UK Inv6•tmonts Opening m8rketV8lug Additlons 8t co81 D19POS81 proceeds G8inlllossl tor thg year.. Reallse¢ Unreollsed 4,219.d29 1,450.302 11,353,574) 942.911 5,162.340 112,551 1.562,853 165,2771 11,418,851) 937,526 6,404,548 12,234,753) 43,954 139,118 4,499,229 4,939 6.481 120,596 1,117.262 19.565 50,435 259,714 5,616,491 24,504 4,042 50.977 5,162.340 89.354 Cash Markot value at 31 Octob•r 2024 4,504,1e8 1.136,827 5,640,99S 6,231,694 Totfillor Group 4.504.168 1,13&827 6.840,095 S,231,694 Investment In Faculty Servi¢¥$ Limlied 100 100 100 Tot•llor FaeuLty Fund• 4.504,288 1.136,827 5,841,095 5.231,7B4 IndkdUAl investments in 8xcesg of 5% of Ihe comblred portrolio veluè.. Markotvalu UK Tie88ury 0.25% 3110112025 ITN251 Gilt 5.43 283,860 RSgk ig mitigeled by holding inve3tment$ In ernallY m8naged portloli03. E8ch porttolio has a timi ot Investmernt managers who maint£in the portfolio 8ceording to 8 risk profile Str8tegy SBI by the FBcuIty. The portlollo8 ar8 dlverslfied by market sector and geogr8phi¢81 di8tribution. 23
THE FACULTf OFADVOCATES FACULTY FUNDS NOTES TOTHEACCOUNTS(Gontlnued} Fortheyear•nd¢d 3106tober 2024 17. Debtor 2024 Croup 2024 Foculty Funds 2023 Group 2023 Faculty Funds Trade debtors Prepaymenis (nher debtOfS Other taxation soc18188curtiy Due by Members, Fund De by subsldlary undert£klng 51,043 11,882 359.893 228.021 77,486 77.486 466.574 137.916 67.343 67.343 225.000 311,557 Total 488.422 628.946 533.917 430.259 1& CrlI0r 2024 Group 2024 Feeulty Funds 2023 Oroup 2023 F8cuIIy Fund8 Tr8de cre¢ltor5 Corpor8llon 18x Other tax8tlon and $oclal securlty Other cr8dltors Oue to Members, Fund Dueto SbS[dI0ry undertaklng Accrualg 2,576,921 16,132 383,987 1,375,349 26.680 178,388 2,063,603 20,935 65,724 340,300 1,770 1,077,203 26.630 94,763 2,669 178,934 369,537 505,820 282.140 596,377 Tot81 4.684,839 554,652 4,098.418 645,903 19. Unr•8trieted fund• Group Facutty Funds Ai 1 November 2023 Surplus forihe year Transfer to Lor(J Hope SchoL815hiplund B,835,694 286,587 8,237.640 142.738 Fund$ at 31 October 2024 9,122.281 8,380,378 At 1 Novernber 2022 Surplug forthe year Transferto Lord Hope Scholarship fund FuTrYs at 31 October 2023 7.019,539 1,878,655 62,5001 8.835,694 6,677,398 1,622.742 IK2,5001 8.237.640 The transfer to Lord Hope Schola¥ship Fund retle¢ts grEnt aw8rd3 mpde from unrestriolod lunds which were previously ch8rged tn the Lord Hope Scholarship Fund. 24
THE FACULTY OF ADVOCATES FACULTY FUNDS NOTES TOTHEACCOUNTS Icontinuadl Forth¢y¢ar ended 31 Octob•r 2024 20. Rèstricted fund8-Group and Faculty Funds Llbrary Lorql Hop¢ Archiving Scholarship Lord Rald IFaculty SGholarshlp Fund 2024 Project Fund Total Fund at 1 November 2023 36.824 220,184 837,086 1.094,094 Income on fund-dfvldends and Interest Expenditure oll fund.. Grani Awards Investment management fee Galnlllossl on sale of Investmènt$ Unrealised loss on investments Transfer Iram uThrestrict8d funds 36.000 190.196 28,972 255.170 119.3871 1117.0001 119,0001 1155.3871 110,0901 110,0901 6,481 6.481 12Q,596 120.596 Fund at 31 October 2024 53,437 293.382 964.045 1.31CI,864 Lord R•ld Llbrary Lord Hope IF8culty Archlvln¥ Soholer8hlp Soholarshlp Pro]t Fund Fund 2023 Total Fund at 1 Nov•mb•r2022 36.824 119,671 891,349 1,047,844 Income on fund- dNidends and interest Éxpendiiure on fLJnd'. Grgnt Awards Investment man8g8neni fee Lo98 on $818 of Investments Unreali38d 1085 on Investments Transfer liom unrestricted lund3 Fund at 31 October 2023 91,513 29,219 120.732 153,5001 144,0001 19,6071 1,520 131,3951 197,5001 19,6071 1,520 131,3951 62,500 1,094,094 62,500 220,184 36,824 B37,086 25
THE FACULTY OFADVOCATES FACULTYFUNDS NOTES TO THE ACCOUNTS Icontinuedl Fortho yoar •ndod 31 Octob•r 2024 21. Anatysis of nèt O•¥Ot• betwegrblundB Tanilbio and herllag• assots InvaKtrn•nts Net csurrent Group-2024 Total Rejtricted funds Faculty Scholarshlp Lord Hope Seholarshlp LlbraryAichivinR Project 1,138,827 1172,7821 293,382 53.427 174,037 1,658.818 964.045 293.382 53.437 1,310,864 9.122,281 1,138,827 4,504.168 Unrè•trlct•d lund• 2.959,295 Total ngt a$aot8 2,959,295 5.640.995 1,832.855 10,433,145 Tonglble and herltag• Faculty Fundg 2024 N•t currant Totol R88trlct•d fundB Faculty Scholarghlp Lord Hope ScholArshlp Llbr8ryArchlwng Prolact 1,136,827 1172,7821 293,382 53,437 174,037 1.054,078 964,045 293,382 53,437 1,310,864 8,380,378 1,136,827 4,504,268 Unr08trlct•d fundB 2,B22,034 Total not a8BoiB 2.822.034 5,641,095 1,228,113 9.691,242 Tanglble and herltag 468et8 N•t current a•sets Graup- 2023 Inv•8tm•nts Total R••tricted funds Fheulty Scholar8hlp Lord Hope Schol8rshlp Lltyrary Archiving Project 964,124 1127.0381 220,185 36,823 129.970 1,744,678 837.086 220.185 36.823 1.094,094 8,835,694 964,124 4,267.570 Unr•8trl¢t*d funds 2,823,448 Total net &8sets 2,823,448 5.231,694 1,874,646 9,929,788 Tanglbl¢ and herltagè assèts Iwestm6nt• Foeulty funds- 2023 Net curront a89èts Total Restrl¢tedfund8 F£cultyScholarshlp Lord Hope Scttolarship LibraryAichiving Project 964,124 1127,0381 220,185 36,823 129.970 1,312.323 837.086 220,185 36.823 1.094.094 8,237,640 964.124 4.267.870 Unrastri¢ted lunds 2,657.647 Total nèt gssets 2,857,647 26 5.231.794 1.442.293 9.331.734
THE FACULTY OF ADVOCATES FACULTYFUNDS NOTES TO THE ACCOUNTS Icontlnuedl Forthe year ended 31 October 2024 22. Lease commltment¥ The total of fJtura mlnlmum lease payments under non-csncell8ble operBting leases for each of the following P8ri0ds 8r8'. 2024 Group 2024 Faculty Funds 2023 Group 2023 Faculty Funds P8yat)lo wlthln 12 months PayaL)le within one to fw8 y98rs P8yabl8 after more thon flve y88r8 Ial 218,713 121,561 217.891 125,527 742,793 472.000 581,270 475.S61 960,500 960,500 1,078,500 1,078.500 1 922 006 1.554.061 1,877 ff61 1 679 588 Operating lease pgym8nts recognised as an expense in the year bytho Croup wero E235,28512023.. £224,358> and by Faculty Fund$ were £125,52712023.' £134.2641. 23. R•lat•d p&rtl•s The FBculty Funds owns 10086 of the Issued share caprtal of FAeulty SeNlc88 Llmbted. In t8rm5 of tho Scheme annexed to Ihe Mlnute ol Agreem8lll between F8culty Services Limlied 8nd The Faculty ol Advocates dared 12 February 1971. F¥6ully SeNices Limlted undertakes, Inter oli8, the ren(leng of accounts for woik done by praclising advocates and the Ingatherlng of lees payable foi such work on an agency ba813. All Advocate Trus¢ees were subscTlber3 to the Scheme durlng theyear and hsd the 88me interest In the 8rr8ngemÈNt as every other $ub$¢riber. Follo4n8 th8 Implement8tion of the Dgclaratlon of frust. on 3rd March 1976, The Faculty of Advocai8s Members, Fund w88 èSt8bllsh8d io operate the non-ch4rrt8ble luTh¢tlon ol The Faculty of Advoc8tes whilst the charitable functlon wès Incorporated Into The Facutty of Adv0¢8t8s FAculty Funds Ireglstpred charity SC0107731. Owing io mutU81 Offic8 888rer8 lexeluding Independent trusteeswlthin The FBculty of Advocates Faculty Fund51 The Faculty of Advocate$ Mambars, Fund 2nd The Faculty ol Advocates Faculty Fundsare sublectto common control but lleith&r ody controls the other. The Faculty of A¢vo¢aies Faculty Funds lully controls it5 wholly owned tr8dlng subsidiary Faculty Servl¢eg Llm118d (company rew81ratlon SC0482611. Related PBrry trans8Ctlons wlth The Faculty of Advocgtes Member8, Funds are fully dl8¢10ged wlthin the IlnaTrclal Statements. 27
THE FACULTY OF ADVOCATES FACULTY FUNDS NOTES TO THE ACCOUNTS Icontlnuedl Forthe yèar ended 31 OGtober 2024 P•nsiofbS- Group and Faculty Fund8 The Faculty of Advo¢8tes Faculty Funds participatad in 8 tundgd multl-employerdefined benefit pension scheme i the UK. until July 2010 when ihe seh8me was closèd. From August 2010. $ st£kehotdor scheme was offered to all eligible employeès. Employees contribute a minimuffl of 4Yo ol penslon8bl8 salary, to qual for B fixed employer contributlon of 9%. The¢efined benefit schem818 a sepgratetru8tee administer1 fvnd holdingthep8n$ion scheme assetsto meet long term pension l18b1t1es. A full gctuarl81 valuAiion w£s carried out at 31 October 2024, by a qualrfied Independent ectuary. The malor assumptlon8 u8e(J by the 8Ctuary are 8hown below. A8•umptlon8 ai Octobor 2024 4.80 3.1546 2.75 5.40% 3.30% 31 October 2023 4.80% 3.15 2.70% S.75% 3.30% 31 Ootober 2022 4.7596 3.00 2.55% 4.70% 3.25% Rate of Incr88se in saloflès Rate of Increase in p8nsion8 in payment Rate of revBlu8tion fordeferred p8n8ion3 018COUnt late Inflation assumption IRPII Prosontv¥iu•g ofdeflned ben8llt obugatlon, falrvaluo of a88èts onddellnod bèn•fft U•bllltywlthth• •xp•ct•d rates of r•turn on the a$$•t8: 31 Octobor 31 October 2024 2023 £000 £0 21 Octob•r 2022 Éooo Equitles Gills Corporate bond$ Absolute Return C88h Property 5,689 9,895 5,963 10,242 224 882 11,849 22,400 10,520 882 619 351 Total market volue of a98eis 28,440 27,186 27,812 Change In ¥alu• of Ihv asjets 2024 Éooo 27,186 1,538 2023 £000 27.812 1,292 F8ir value of assets gt 1 N¢)vember 2024 Interest on Bs8etS Company contributlons Contilbuiions by Plan partlclpants Banefits paid Administration costs Change duo to settlements &rHJ curtallment8 Return on 2ssets less Inièrgst FBlr valLJe ot assels at 31 O¢tober 2025 18641 1411 16731 621 28,440 1.2451 27.186 28
THE FACULTY OF ADVOCATES FACULTY FUNDS NOTESTOTrIEACCOUNTS l¢oTrtinuodl For the yearended 31 October 2024 24. Ponsion• Icontinuèd.) Changè in v&lu• of the DB li8bilitios 2024 £000 16,007 2023 £000 19,425 Value of liabilities at 1 November 2024 Curreni service cost Contributions by Plan participants Past 5etvlce costs Interest on 118biliti6s Benefits paid Change due to 8ettlements and curtollments Experienc8 Ig81nll loss on liabllities Changes to dEmogr8phie assLJmptlons Changes to financ181 assumptions Value of Ilabllltles gt 31 October 2025 896 18641 898 16731 11501 15511 858 16.196 11,0221 11451 16.007 Net penslon 8888t Rgsirlction on 888et resllsed 12,244 112.2441 11,179 111,1791 The 8etuarlal veluetlon 83 at 31 Octob•r 2024 show$a an incre880 in the 3urplus from £11,179,000 to £12,244,000. 29
THE FACULTYOFADVOCATES FACULTY FUNDS NOTES TO THEACCOUNTSIGontlnuedl For tyOr ondod 31 Ootober 2024 24. P8n#ions {Continu¥d.I Amount r¢¢ognisèd in the statgrnent of flnanclal a¢tlvltl8S Group and Faculty Funds- 2024 £000 2023 £000 Currenr service costs Adminisiration costs Interest on liabilitiBS Interest on assets PBSt 8ervice costs Settlement and curtailment cost8 Total g£n to statement of financlal 8ctivitie8 41 896 11.5381 898 11,2921 801 3941 Rom•a8uremont$ tyv•rth• period 2024 £000 16211 11501 15511 858 1,065 2023 £000 1.245 11,0221 1145 12,4861 2,802 394 Loss I Igainl on agsets in oxce89 of Interest Eyperience I095es I Igaln81 on liabiLities L055es l Q8rnsl from ch8n88S to demographlc 98sumptlon8 L085e5 1 Igainsl from chonges to financial assumptlons L08303 I Igalnsl fron) change in effect of 85set ceillng ToLal r8mea8uiements Atlhe yesr-8nd ihere were out8tandlng pension contiibution5 01 £Nil12023- £NIII. Stok•holdei P•n•lon Schomo 2024 Group 2024 Faculty Furwj 2023 Group 2023 FAeulty Fund Stak8holtJer pension Scheme - employer contrlbutions 476,066 187,287 382,094 149,922 30
THE FACULfi OF ADVOCATES FACULTYFUNDS NOTES TO THE ACCOUNTS l¢ontlnuodl Fortho year ondod 31 Octob•r2024 25. R•concili8tion of oporating surplu8 to Mt cosh Inllowfrom operatlnq aCtItIO$ 2024 Group 2024 F8cuity Funds 2023 Group 2023 Faculty Funds Net income Corporation tBx paid Interest and dividend8 receivabl IGainsl11055es on invements Depreciation charges IGainl11055 on Disposal of FL¥ed Assets Decre£selllnr.re8sel in debior$ Incre85elldecre&sel In credhors 454,823 48,534 1176.6461 1133,3641 1310.1491 1310.1491 327.198 262.761 359.508 1,821,907 1,606,467 40,494 192,5001 192.2841 155,0191 1SS,0191 374.735 287.728 1843,0581 1843.1931 1268.2771 1198.6871 1168.8841 1102.8801 1.103,770 191.2511 1,433,838 143.851 Nei cash Intlowfrom operatlThg actlvllSes 1,179,253 1111,1821 2,511.S13 944.690 2e. Analy818 of chawgl In ¢a•h and ca•h •qufv•lont• la) R•turno on Inv8tm•nts and •onil¢lng olllnanc• 2024 GroLbP 2024 Fgculty Funds 2023 Group 2023 F8culty Funds Interest 8nd dlvidends iecefv8d 176,646 133.364 92.500 92,284 Net C8gh inflow tor returns on Irvesiing on¢ ¥ervl¢Sng of finance 176,646 133,364 92,500 92,284 Ibl Capltal•xp•ndltur• and flnanclal Investment Purcha50 of herft8ge 8s$8t$ Purchese of 18nglble fixed 89gets Pur¢hage of Investments So19 ol tangsble lixe¢J assets 5818 ot Investments 110.0001 110,0001 135,8601 135,8601 1453,0451 1417.1481 1182,7331 189,4161 11,562,853) 11,4SO,3021 16.404,5481 16,404,548) 1,170,000 1,170.000 2.234,753 2,224,7S3 1,418,851 1,353,574 Net Cash loutllowl for c8phBI 9xpeTh11ture 8nd financial Invg8tments 1807,0471 1523. 8761 13,219,388) 13.125,0711 31
THE FACULTY OF AOVOCATES FACULTY FUNDS NOTES TO THE ACCOUNTS Icontlnued) Forth•year•nd&Y 31 Octob8r 2024 27. Analy818 of nèt fuTrds 31 O¢tobe¥ 2024 Novèmbèr 2023 Ca¥h Flow Group Cash at bank and In hand CB8h held in investment$ 5.444,749 69.354 793,701 144,8501 6,238,450 24,504 Total 5.514.103 748.B51 6.262.954 31 Oetober 2023 November 2022 Co$h Flow Group C85h et bank 8n¢ In hand Cash held in lllvestm8nt8 S,0,787 38,686 1646.0381 30.668 5.444.749 69.354 Total 6,129,473 615,370 5,514.103 31 Octobèr 2024 Novombev 2023 C88h Flow Foeulty Funda Cash at benk 8nd in hand Cash heid In invg8lmentg 1,643.980 69.354 1503,9791 144,8501 1.140,001 24,504 Total 1,713,334 548,829 1,164,505 31 Ootob8r 2023 Nov•mbar 2022 C8•h Flow Faculty Fund• Cagh 8t bank and in hgnd CBsh heid in investments 3,762.740 12.118.760) 38.686 30,668 1,643,980 69,354 Tot81 3,801,426 12.088,0921 1.713.334 32
THE FACULTY QFADVOCATES FACULTY FUNDS NOTES TO THE ACCOUNTS (cont•nu) Forth¢ yeor ended 31 Octgb¢r2024 28. Comparativo Statement of Flnanclal Activities-Group Unre8trictod R•$trl¢t¢d Fund5 Fundg 2023 Total Not88 Incomeand Ernlovfflients from: Grants and donations Charitablo activities Trading ac*ivitie8 Investment 8nd other income Calnlllossl on fDLed asset di$posal 1,633.238 2,769.305 5,326,145 S36,241 843,058 91,513 1,724,749 2,769,205 5,326.145 665.460 843.058 29,219 15 Total Incom• 11,207.985 120.732 11.328,717 Exp•ndltvr• on: Raising hJnds- Inv8Stment marb8gerr8es Ch8rltabla 8Ctlvltles Operatlonal & other c08ts Tr&dlnrf Activlties 12,596 2,SS3,640 1.788.876 4.624.818 9.607 97,500 22.203 2,651,140 1,788.676 4,624,818 10 Tot•l •xp•ndlture 8,979,730 107.107 9,086.837 N•t gain{10?•1 on Invg$trnents Rooli8od Unrealised 18 18 2,522 82,372 1,520 131,3951 4.042 50,977 Not InGom•l{108al 2,313,149 16.250 2,296.899 Other roco4nls•d ialnslllo•Jo•}: Corporatlon iaxcredlt Aciuerlal105ses-p8n3lon scheme 140,4941 1394.0001 140,4941 1394,0001 Net movement In fund• 1,878.655 16.250 1.862.405 Totalfund• brouihl forward Reserve tran8fer Iny98r 7,019,539 162,5001 1,047,844 8.067.383 Total lund8 ¢arrl•d lorward 8,835,694 1,094,094 9,929,788 33
THE FACULTY OFADVOCATES FACULTY FUNDS NOTES TO THE ACGOUNTS Icontinuedl Forth•yèar end¢¢J 310¢tober 2024 28. Compar8tlv• Statomenl of Finan¢lalActlvltles- Fg£uIty Fund• Unro8trl¢t•d Rwtrlcied Funds Fnd• 2023 Total Not88 Iorne and Endowments from: Grants avd donatlons Charitable activllie8 Investment and other incom& Gainlllo381 on fixed asset disposol 1,858,236 2,949,305 636,025 843,194 91,513 1.949,749 2,949.305 665,244 843,194 29.219 Total In¢om 6.286.760 120,732 6.407,492 Exp•ndlturo on.. Raising iundg- inv8Stmont managerfe08 Ch8ritBble 8clivities Oper81ional & oth8r costs 12,596 2,553,640 1,788,676 9,607 22,203 97,SOO 2.651,140 1,788.678 10 Total •xpandlture 4.354 912 107,107 4.462,019 galn8111o¥$•il on Inv•8tments Aealised Unrea15sed 16 18 2.522 82.372 1.520 131.39SI 4,042 60.977 N•t 1ncomo111011 2,016,742 116,250 2,000,492 Oth•1 rocognl•ed 8aln8lllos••ul: Actuarl81 Lo88es-pen8ion 8chem& 1394.CQOI 1394.0001 Not mov•m•nt In lundj 1.622,742 116.2501 1.606,492 Total fund# brou8htloMrd Reserve transf#T in year 6,677,39B ie2,5DJI 1.047,844 7.725.242 62,5CQ Tot•1 fund8 earrl•d forward 8.237,640 1,094.094 9.331,734 29. Contlngont Llablllty The Vlrgln Medla Ltd v NTL Penslon Trustees 11 (Je¢isir)n. hBnded down by the High Court on 16 Juno 2029, considered the implications of sethion 37 of the Pension Schemes Act 1993. In g jud8m8nt delivered on 25 july 2024, the Court of App8al unanimously uphel¢ the declsion of thp High Court 8nd the case has the pot8ntialto ¢BU8e gignrficant issues in the pensions industry. The Penslon Scheme Trustèe will inv8stigate the possible Implic8tions with its odviser3 in due CDurse, but il is not posslble at present io est1rn8te the potenti81 impACt. ir any. on the P18n and any pri1paI employor obligations.
INDEPENDENT AUDITOR'5 REPORTTOIHETRUSTEESOF
THE FACULTY OF ADVOCATES FACULTY FUNDS
Opinion
We have audited the financial staternents ofFaculty of Advocates F%ulty Funds {th£ 'parellt charity,) and its
subsidiary (the'groupj forthe year ended 31 OctDber 202¢whlch comprise the Group Statetnenr of Flnanclal
Actlvldes. Charlry Statetnent of Flnancial ALtlvltles. Gruup BaldllLe Slieet, Chdrity Balance Sheel Group Cash Flow
and Ch31ity Cash Flow and notes tu the financial statement5, includlng sSgnific3nt accounting policie5. The financlal
reportin8 frameworkthat has been applied in their preparathon i5 applicable law and United Kingdom Accounting
Standards. includlng financlal Reporting Stsndard 102, the Financial Reporting Standard applicable in the UKand
Republic of Ireland tunited Klngdotn Generally Accepted Accounting Practice).
In our opinlon the financial ststernents..
give a true and fair view olthe state ofthe affairs of the group and the parent chariws aFfair3 as at 31 October
2024 and Of the group's and the parent charity's incoming resourees and appllcation olresources for the year
then ended.,
have bEeii properly preparEd aiiurdance wldi Unl¢ed Kingdoni Generally Accepted Accounting Prdctice,.
and
have been prepared in accoTdancc wlth the requlrements of the Charltles and Trustee Investment Iscotlandj
Act 2005 and regulations 6 and 8 of the Charities Accounts Iscotland) Regulatlon5 2006 (as amended).
Basls for oplnlon
We conducted our audit in accordance with International Standards on Auditing IUKI (ISAS (IIKI) and applicahle
law. Our responsihilitie.s under thnse standards are turther descjibed in the Auditor'5 responslbllltSes forthe audlr
of the flnanclal statements sectlon of our report. We are ihdependentof the group and parent Lhdrlly In <iLLvrddiice
with the ethlciil requlrernents thai are relevant IL) uur audlt of the financial statements In the UK Includtng the
FRC'S Ethical Standard, and we have fullllled our other ethlcal responslbillties In ac
Matters on whicb weare requlred to report by exceptlon We have nothlng to report in respect Df the following matters where the Charlt5e5 Accounts [Scotland) Re¥ulations 20D6 (as ainended) requlre us to report to you It. in ouropinion.. the information glven In the truStse annual report is inconsistent in any material respertwith the financial 5tatem@nts,' or the parent charity has not kept proper accounrlng records,. or the parent charitys financial statements are not in agreernent with the accountSn8 records and returns,. or we have not received all the Infnrmation and explanations wo require forouraudiL Responslbllltles of trustees As explalned more fully in the Trnstees, Responsibilitles S¢atement5et out on page 8, the trustees are responsible for che preparatlon Df the flnancial staMentS and for being sad5fied thar theyglve a true and falr vlew, and for SULh Internal contral as the trustees deternjine Is necessary to enable the preparation of flnancial statements that are free from tnaterlal mlsstatement, whether due to fraud or error. In preparl•g the flnantS31.4tAtements, the trnstees are responslble fora5seuing thc group and the torent charlS abiliry to contlnue as a golng concern, discloslng. as applicahle, n)atters relat¢d to goingt concern and uslng the going Concern basls of accountlnR unless the trusteeselrher intend to liquldate the 8TOUP oi. Llie Pdl'eiit Lharlty orto cease operadons, orhave no reallsdc alrf.rnatfvÈ but to do so, Audltors. re5ponslbllltles for the audlt of the financlal slatements We have hee.n appointed as auditors underthe Charities and Trustee Investment (ScodaTJdl ALI 2005 and report In accordance wlth regulatlons made under thatAct Ouroblectlves are to obtaiii reasunable assurance about whetherthe group And parent Anancial statement5 asa whole are fretr from material mlsststen)en¢ whether due to fraud or error, atjd tn Issue an auditor's report that includes ouroplnlon. ReasoTidble a55urance is 2 hi8h level ofassurance, but is not a guarantee thor an audlt conducte.d in attordance wlth ISAS (UK) wlll alway5 dotccf a material mi5Statemeiit when it exl$rs. M15Statement5 can arfse from Fraud or error and are considered materlal if, Indlvldually or In the a8greBatè. tliey could I'edsufidbly be expec*d to intluence the econornic decislons of users taken on the ba51s of these flnanclal staternents. Irregularitlcs, Includlns fraud, are Instances olnun-cornpllance wlth laws and regulatlons. We deslgn proLedures in Ilng wlth our reswjnslbllltles. outllned above, to deteci tnateridl iiilb5taiements In respect oflrregularlties, including Fraiid. The specifi£ procedures for this enKaEem¢ntand the extent to wljiih tlie5e dre copable of detectlng Irregularltses, Includin8 fraud are detalled below. Identlfying and dssesslng rtsks relared to Irregu]arlkne$'. We asscssed the susceptibiliLy olthe group and parent charlWs financial.statements tn matertal misststement and how fraud mlght occur. Includin8 through discusslons with the tru$rees. discu55ions withln aur aiirfit tram plaiining tneetin& updatinB our record of Internal controls and ensurlng the¥e contro15 operated as Intended. We evaluated possible incentives and opportunlt5es for fraudulent manlpulation of the financial 5tatement& We identined law5 and reEulations that are nf signlficance In the context of the group and parent charity by d15CU5siDns wlth trusteeb aRd updating our understanding of the sector in which the Broup and parent charity operate. Laws and regulations of directsignifi(ance in the context of the group and parentcharlty Include the ChaTjties and Trustee Investment [ScotJandl Act 200S. the Charitie5 AccounLi ISiuLldnd) Reguladons 2006 (as amended) and guidance Issued by the Office of the Scottish Charity RegLdator. Audit response to rlsks Identlfted.. We consided the exient ofLumpllance with these laws and regulations as part of our audit procedures on the related financial statement items Includinga revlew of financlal statement disclosures. We reiryÈwEd the parent chariLJls records of brL'aches of laws and regulations, Ininuies ofmeerfiixs and correspondence with i'elevant authoritiesto identify potential material misstatements arising.we discussed the parent charitys policies and procedure5 for compliance with laws and regulations Mdth member5 of rnanagementresponsible for ¢oJnpliance.
Dur5ng the planning meetingwith the audit team, the engagement panner drew attentlon to the key area5 which might involve non-compllance wirh laws and regulations or Iraud. We enquired ofmanagementwhether theywere aware ol anyin5tances of non-compliance with laws and regulation5 or knowledge of any actual, suspecred or alleged fraud. We addressed the risk of fraud through management oveTride of conirols by testin8 the approprlateness of journal entries and identifying any significant tran%actttsnf that were unusual or ourside the normal Ltiurse ofbusiness. We assessed whether ludgements made in maklng accounting e5tiTnates gave rise to a possible indlcation of managernent bia5. Atthe completjon siage of the audiL the engdgenent partnerf5 review Includ¥d ¥nburing tliaL the tearn had approached theii work with appropriare professiomal scepticism and thus the capacity to identify non-compliance with law5 and regulations and fraud. There are Inherent limitations in the audlt procedures described above and the further rernoved non-compllance wlth law5 and regulations is from the events and trdnsactlons reflected In the ftiiaiiLSdl stateinents, the le55 likely we would become aware of IL Also. the risk of not detecUn8 a material misststeThent due to fraud is higher than the rlsk of notderecting one resulting from error, fraud may involve dellberate concealrnent by, for example, Forgery or intentlonal misreprcsentations, or through collusion. A lurther descnptson of our responsibiliiies is avalLAble on the FSnancial Reportn£ Councll's website at.. rhis descriptiDn fortns part of our audi$ reporL U$e of our report Thi5 report is made solely to the parent chxriry'% rru.stee.s, as a body, in accordance with Regulatian IQ ofthe Charlties Accounts (Scotland) Regularion5 2006. Our audlrwork has been undertaken so thai we might state to the parent charity's truste25 those mdrter.s we are required iu stdLe to theni in an auditols report and for no nthcr purpose. To tlie fulleslextent pei'initted by law, we do not accept or assume responsiblllty to ar]yone otherthan the parent charity and the parent charity's trustoos as a body, for our audit work forthis repor4 or for the oplnion5 WQ Saftery l.l.P 9 Haymarket Square Edlnburxlj EH3 8RY Statutory Auditors Date.. +0 Saffery LLP Is eligible to act asan audstDr In terms of sectiun 1212 of the Companies Act 2006 37