**Charity registration number SC012271**
## **SMITHTON & CULLODEN FREE CHURCH**
**ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024**
## **SMITHTON & CULLODEN FREE CHURCH**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
## **Trustees**
## **Senior management**
**Charity number**
SC012271
## **Principal address**
Murray Road Smithton Inverness IV2 7YU
## **Auditor**
MacKenzie Kerr Limited Redwood 19 Culduthel Road Inverness IV2 4AA
## **Bankers**
Royal Bank of Scotland plc Inverness Head Office 29 Harbour Road Inverness IV1 1NU
## **SMITHTON & CULLODEN FREE CHURCH**
## **CONTENTS OF THE FINANCIAL STATEMENTS**
||**Page**|
|---|---|
|Trustee report|1 - 3|
|Independent auditor's report|4 - 6|
|Statement of financial activities|7|
|Balance sheet|8|
|Statement of cash flows|9|
|Notes to the financial statements|10 - 21|
## **SMITHTON & CULLODEN FREE CHURCH**
## **TRUSTEE REPORT**
## **FOR THE YEAR ENDED 31 DECEMBER 2024**
The trustees present their annual report and financial statements for the year ended 31 December 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the 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**
## **Beliefs and objectives**
The congregation holds the Bible, in its entirety, to be inspired Word of God, and therefore the only rule of teaching and conduct. The congregation also accepts without equivocation the Westminster Confession of Faith as its subordinate standard.
The principal objectives of the Free Church of Scotland and of this congregation are the public worship of God, the spreading of the gospel of Jesus Christ, the exercise of pastoral care and the provision of practical compassion for those in need.
## _Public benefit_
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
## **Achievements and performance**
## _Significant activities and achievements against objectives_
## **Principal Activities**
The principal activities of the congregation in the current and future years are the holding of public worship on the Lord's Day, meeting for prayer and Bible Study, Sunday School, Youth Clubs, Mother and Toddler Group, Lunch Club, Pop In, evangelism in the local area and Home Bible Studies.
The main source of income is donations from the members of the congregation and these are used to maintain and operate the Smithton & Culloden Free Church.
## **Financial review**
## **Results for the year**
The congregation's unrestricted funds had a deficit of £2,816 before transfers (2023: deficit of £35,187) and had unrestricted funds amounting to £1,899,599 (2023: £1,992,150) at the year end. The congregation had an overall surplus for the year of £145,902 (2023: deficit of £82,844). Restricted funds at the year end amounted to £268,739 (2023: £30,286) and total funds of £2,168,338 (2023: £2,022,436).
## **Statement on Risk**
The Deacons' Court keeps under review the major risks to which the Church is exposed and has established procedures to mitigate any risks identified. This includes health and safety and the protection of children and vulnerable adults.
## _Reserves policy_
The Deacons' Court manages a mixture of unrestricted and restricted reserves. Restricted reserves are those funds received for specific purposes or where the donor has placed restrictions on their use. All other reserves are unrestricted and these may be expended on any of the Church's objectives.
The trustees' policy has been to hold sufficient unrestricted funds to enable the charity to fund any foreseen deficits out of past reserves, whilst still meeting the ongoing commitment to maintain the fabric of the Church and other recurring expenditure.
- 1 -
SMITHTON & CULLODEN FREE CHURCH
TRUSTEE REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
structure, governance and management
Smi(hton & Culloden Free Church is established by ConstrtLrtion. 11 is a registered Scottish Charity (No. SC0122711.
Tha Smf(hton & Culloden congrègation fomis part of tha Fraa Church of Scotland which cama into axistenca as
consequanca of tho Disruption of 1843. Tha Congrégation startod in Juno 1978 as a rasult of an initiativo of tha
Fa Prèsbyt¢ry of Invèmèss to ruch thè growing eommunitiès of Smithton, Cullod•n, Ballo¢h, Wèsthill, Cradlèhall
and the surrounding aw.
The congregation is aulhorised by the church lo have a minister paid from the central fijnds of the Church.
Tha titles to th8 congragation's h•rrtabl8 propty Ith• churchos, hall8 and manso81 ar• hold undèr tha Fraa Church
of S¢oll•nd Model Tru$l D¢¢d.
Thg propgty and financial aff4irs of the congregation are managed by tho Deacon$, Court, which 1$ ¢1od•d by
momb8rs of tho congregation, under the supervision ol the Kirk Seysion.
Th8 Fr88 Church of Scotland is listed in the Chariti•s (Designatad Religious Bodi•sl Iscoyandl Order 1994 and is
therefore d¢$ignat¢d lo the purposes of Sedion 65 of th• Ch•rili¢$ and Tw$le¢ Invoslmonl IS¢ollandl Act 2005.
Thè trustees ivho served during tho yoar arKI up lo the dat8 of signature of tho financial statements wore..
Recmitm8nt and appoinlmgnl oftwslees
Deacons, Court members are appointed by tho Kirk Sossion 5ubsequonl to a congrogalional olection. Th8ro 15 no
formal induction programmo in place for now offico holdgrs, but training is given to ensuro that Trustaos and
Daacons, Court mamr$ are familiar with the Church's values, aims and responsibilitiès as officers of the charity-
Tha members of thè Dèacons. Court are thè trustèès of the charity.
Trustees and members of the Deacons. Court
The Conqreqational Trustees who served during the year were
and
Congregational
rus
oas are a
oc
as require
In or
o¥
prope
onging
o congrega
ion may
eld in the names of theso elected trustegs. Their dutios aro to hdd
proporties in trust and sign ngcassary documonts connected wth ownorship or sala when duly authorised.
SMITHTON & CULLODEN FREE CHURCH
TRUSTEE REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
stat•m•nt ol trust•¢ r•sponslbllltbgs
The trustaas arè responsi8 for pr8panng Ihe Truslee Report and thts financA81 stslements in accordance wth
applio8ble law and United Kingdom Accountirvj Stsndards Iuniied Kingdom G8nordlty Accept&J A}Unting
Practscel.
Th¢ law applicabl• to ch8riti"•s in Sc0Ual rnquirns tho trst005 to Prepare finan¢1 staleThnts for 8a¢h Iln8nc4al
year which glve a true and fair ¥W of th& affairs of tho thanty and of ihe inixJming r8Bources and
opplicalion of re3ources of Ihe d)arily for Ihat year.
In preparing these financial slatemènts, Ihe Iwslees are requir8(I to..
3elecl suitable ¥¢cwnling poliCS and then appty Ihem ¢tht51Stenty-
- obseNe the melhods and principle$ in the Charilies SORP".
- m8ke judgements and estim8t&$ that &re reasonable 8nd prudent..
- state whether applicaW accountirvJ standards hav& be loll)wed. subject to any material departur•s dlsclo3éd
and explained In Ihts financlal statem8nl$". and
- prepare the financial statements on the wng c4Jncom b8*$ unlo8$ 11 Is inappropriats to presume that th8 charity
WM ttfitinue in operation.
The trust88$ are rgswnsibl8 for keepin9 Suffic*1 aCcn r8cords thal disd09e with reasonabl8 accuracy at any
timè th8 financk?I postion of charity and 8natAe ihem to ansuro that the financial statgmènts (xjrnply wlth thè
Chailles and Trustaè Invgstment {S&)and1 Act 2005, tm Ch8filio8 Aets)unts IS¢oU8ndl Regulations 2006 and lh•
provisions of thg trust dted. They arg 8lso responsible lor safeguarding the 8$8ots of thè charity and h•nct f
toklng reasonats Stops for the prvvents.on a)d detect of fraj and other Irregularili88.
## **SMITHTON & CULLODEN FREE CHURCH**
## **INDEPENDENT AUDITOR'S REPORT**
## **TO THE TRUSTEES OF SMITHTON & CULLODEN FREE CHURCH**
## **Qualified opinion**
We have audited the financial statements of Smithton & Culloden Free Church (the ‘charity’) for the year ended 31 December 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
In our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion section of our report, the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 31 December 2024 and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006.
## **Basis for qualified opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the _Auditor's responsibilities for the audit of the financial statements_ section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and the provisions available for small entities, in the circumstances set out in note 23 to the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.
The charity had limited information available with regard to its payroll, which resulted in us not being able to fully confirm that the amounts recorded through the financial statements and calculations and deductions from its employees and paid over to HMRC were correct. There were no alternative procedures available to us to ensure these amounts are materially correct.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustee use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
- 4 -
## **SMITHTON & CULLODEN FREE CHURCH**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF SMITHTON & CULLODEN FREE CHURCH**
## **Matters on which we are required to report by exception**
In respect solely of the limitation on our work relating to historic bank accounts and certain payroll information described above:
- we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and
- we were unable to determine whether proper accounting records had been kept.
We have nothing to report in respect of the following matters in relation to which the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the trustee report; or
- the financial statements are not in agreement with the accounting records.
## **Responsibilities of trustees**
As explained more fully in the statement of trustee responsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to cease operations, or have no realistic alternative but to do so.
## **Auditor's responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
## Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the company's financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and updating our understanding of the sector in which the company operates.
Laws and regulations of direct significance in the context of the company include The Companies Act 2006, and UK Tax legislation.
## Audit response to risks identified:
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
- 5 -
## **SMITHTON & CULLODEN FREE CHURCH**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF SMITHTON & CULLODEN FREE CHURCH**
During the planning meeting with the audit team, the Responsible Individual (RI) drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the RI's review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify noncompliance with laws and regulations and fraud.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
## **Other matters**
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.
## **Use of our report**
This report is made solely to the charity’s trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
For and on behalf of MacKenzie Kerr Limited, Statutory Auditor Chartered Accountants Redwood 19 Culduthel Road Inverness IV2 4AA 4 April 2025
MacKenzie Kerr Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
- 6 -
## **SMITHTON & CULLODEN FREE CHURCH**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## **FOR THE YEAR ENDED 31 DECEMBER 2024**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2024**
**2024**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**2**
285,158
482,457
Charitable activities
**3**
51,425
1,074
Investments
**4**
2,276
3,713
**Total income**
338,859
487,244
**Expenditure on:**
Charitable activities
**5**
341,675
338,526
Other expenditure
**10**
-
-
**Total expenditure**
341,675
338,526
**Net income/(expenditure)**
(2,816)
148,718
Transfers between
funds
(89,735)
89,735
**Net movement in**
**funds**
**7**
(92,551)
238,453
**Reconciliation of funds:**
Fund balances at 1 January
2024
1,992,150
30,286
**Fund balances at 31**
**December 2024**
1,899,599
268,739|**Total**
**Unrestricted**
**Restricted**
**funds**
**funds**
**2024**
**2023**
**2023**
**£**
**£**
**£**
767,615
266,837
203,190
52,499
70,942
2,612
5,989
8
872
826,103
337,787
206,674
680,201
364,411
254,331
-
8,563
-
680,201
372,974
254,331
145,902
(35,187)
(47,657)
-
15,017
(15,017)
145,902
(20,170)
(62,674)
2,022,436
2,012,320
92,960
2,168,338
1,992,150
30,286|**Total**
**2023**
**£**
470,027
73,554
880
544,461
618,742
8,563
627,305
(82,844)
-
(82,844)
2,105,280
2,022,436|
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
- 7 -
SMITHTON & CULLODEN FREE CHURCH
BALANCE SHEET
ASAT 31 DECEMBER 2024
2024
2023
Flx•d asmts
T8nglble assets
12
1.867.382
1.911,870
Curr•nt a¥Mts
Debtors
Cash al bank aNJ in hand
13
96.1
256.707
13.486
127.224
352.708
140,710
Crodltors: amounts f•llln9 du• wlthln
on• yoa¢
14
{51.752)
130.144)
Not ¢urr•nt o**•ts
3).958
110,566
Total *•••t• l••• currMt Ilab115tlo•
2.168,338
2,022,436
Th• fund• ol th• Gh•rlty
R8strict&J in¢om• fvnd8
Unrestrlcted funds
16
17
268,739
1.899.599
30.286
1.992,150
2.168.338
2,022,436
The finAr)c.l.Il £titernon'.8 were approved by th* trust••s 3 Apll 2025
## **SMITHTON & CULLODEN FREE CHURCH**
## **STATEMENT OF CASH FLOWS**
## **FOR THE YEAR ENDED 31 DECEMBER 2024**
|**Notes**
**Cash flows from operating activities**
Cash generated from/(absorbed by)
operations
**21**
**Investing activities**
Purchase of tangible fixed assets
Investment income received
**Net cash generated from/(used in) investing**
**activities**
**Net cash generated from financing activities**
**Net increase/(decrease) in cash and cash**
**equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2024**
**£**
(845)
5,989|**£**
124,339
5,144
-
129,483
127,224
256,707|**2023**
**£**
(1,599)
880|**£**
(36,007)
(719)
-
(36,726)
163,950
127,224|
|---|---|---|---|---|
- 9 -
**SMITHTON & CULLODEN FREE CHURCH**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024**
## **1 Accounting policies**
## **Charity information**
Smithton & Culloden Free Church is a charity registered in Scotland. The registered office is Murray Road, Smithton, Inverness, IV2 7YU.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's constitution, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the 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.
- 10 -
**SMITHTON & CULLODEN FREE CHURCH**
**NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024**
## **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 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
|Freehold land and buildings|2% per annum straight line|
|---|---|
|Plant and equipment|15% per annum straight line|
|Fixtures and fittings|25% per annum straight line|
|Computers|20% per annum straight line|
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
## **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.
- 11 -
**SMITHTON & CULLODEN FREE CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024**
## **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.
## **1.9 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.10 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
## **2 Income from donations and legacies**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2024**
**2024**
**£**
**£**
Donations and gifts
232,522
425,311
Grants
-
-
Income tax recoveries
46,713
54,886
Other income
5,923
1,880
Other donations
-
380
Special appeals
-
-
285,158
482,457|**Total**
**Unrestricted**
**Restricted**
**funds**
**funds**
**2024**
**2023**
**2023**
**£**
**£**
**£**
657,833
204,447
97,145
-
10,000
-
101,599
40,441
34,269
7,803
11,539
5,917
380
410
65,759
-
-
100
767,615
266,837
203,190|**Total**
**2023**
**£**
301,592
10,000
74,710
17,456
66,169
100|
|---|---|---|
|||470,027|
- 12 -
## **SMITHTON & CULLODEN FREE CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024**
## **3 Income from charitable activities**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2024**
**2024**
**£**
**£**
**Smithton and Culloden**
Magazine sales
503
-
Youth activities
-
840
Book stall sales
980
234
Rental income
49,942
-
51,425
1,074
**Income from investments**
**Unrestricted**
**Restricted**
**funds**
**funds**
**2024**
**2024**
**£**
**£**
Interest receivable
2,276
3,713|**Total**
**Unrestricted**
**Restricted**
**funds**
**funds**
**2024**
**2023**
**2023**
**£**
**£**
**£**
503
507
-
840
863
-
1,214
536
530
49,942
69,036
2,082
52,499
70,942
2,612
**Total**
**Unrestricted**
**Restricted**
**funds**
**funds**
**2024**
**2023**
**2023**
**£**
**£**
**£**
5,989
8
872|**Total**
**2023**
**£**
507
863
1,066
71,118|
|---|---|---|
|||73,554|
|||**Total**
**2023**
**£**
880|
## **4 Income from investments**
- 13 -
## **SMITHTON & CULLODEN FREE CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024**
## **5 Expenditure on charitable activities**
|**Smithton**
**and**
**Culloden**
**Tornagrain**
**2024**
**2024**
**£**
**£**
**Direct costs**
Staff costs
168,610
-
Depreciation and
impairment
45,332
-
Head Office remittances
159,906
-
Presbytery dues
5,936
-
Minister's expenses
11,665
-
Assistant minister's
expenses
2,481
-
Family worker's expenses
2,529
-
Employee travel and
expenses
3,487
-
Outreach
68,027
-
Youth activities
6,172
-
School events
548
-
Donations and gifts
16,083
-
Communion expenses
and pulpit supply
4,187
-
Rent
-
20,841
Provisions
6,233
-
Professional fees
3,343
-
Publications,
presentations and
materials
6,662
-
511,201
20,841
**Share of support and governance costs (see note 6)**
Support
84,003
48,702
Governance
13,954
1,500
609,158
71,043
**Analysis by fund**
Unrestricted funds
341,675
-
Restricted funds
267,483
71,043
609,158
71,043|**Total**
**Smithton**
**and**
**Culloden**
**Tornagrain**
**2024**
**2023**
**2023**
**£**
**£**
**£**
168,610
181,986
-
45,332
45,604
-
159,906
134,833
-
5,936
4,558
-
11,665
12,277
-
2,481
5,767
-
2,529
637
-
3,487
1,822
-
68,027
43,704
-
6,172
8,181
-
548
-
-
16,083
22,820
-
4,187
2,886
-
20,841
-
20,743
6,233
2,999
-
3,343
2,726
-
6,662
7,839
-
532,042
478,639
20,743
132,705
109,041
69
15,454
10,250
-
680,201
597,930
20,812
341,675
364,411
-
338,526
233,519
20,812
680,201
597,930
20,812|**Total**
**2023**
**£**
181,986
45,604
134,833
4,558
12,277
5,767
637
1,822
43,704
8,181
-
22,820
2,886
20,743
2,999
2,726
7,839|
|---|---|---|
|||499,382
109,110
10,250|
|||618,742|
|||364,411
254,331|
|||618,742|
- 14 -
## **SMITHTON & CULLODEN FREE CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024**
|**6**
**Support costs allocated to activities**
Heat and light
Rates and insurance
Repairs and maintenance
Post, stationery and advertising
Training
Computer software
Communications
Bank charges
Bank interest
Other support costs
Governance costs
**Analysed between:**
Smithton and Culloden
Tornagrain
**7**
**Net movement in funds**
The net movement in funds is stated after charging/(crediting):
Fees payable for the audit of the charity's financial statements
Depreciation of owned tangible fixed assets
Loss on disposal of tangible fixed assets|**2024**
**£**
31,240
22,486
52,043
7,728
499
6,473
990
470
2,898
7,878
15,454
148,159
97,957
50,202
148,159
**2024**
**£**
13,160
45,332
-|**2023**
**£**
46,407
15,585
22,585
6,698
375
5,665
1,998
1,061
2,299
6,437
10,250|
|---|---|---|
|||119,360|
|||119,291
69|
|||119,360|
|||**2023**
**£**
12,600
45,604
8,563|
## **8 Trustees**
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
During the year 4 trustees received reimbursement for out of pocket expenses of £2,477.
- 15 -
## **SMITHTON & CULLODEN FREE CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024**
## **9 Employees**
The average monthly number of employees during the year was:
|General office
**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2024**
**Number**
10
**2024**
**£**
151,946
8,150
8,514
168,610|**2023**
**Number**
10|
|---|---|---|
|||**2023**
**£**
166,232
7,401
8,353|
|||181,986|
There were no employees whose annual remuneration was more than £60,000.
## **Remuneration of key management personnel**
The remuneration of key management personnel was as follows:
The key management personnel consist of the Chair of the Deacon's Court, the Treasurer and the Gift Aid Coordinator. Their aggregate emoluments during the year was £13,488 (2023 - £11,816).
## **10 Other expenditure**
||**Unrestricted**|**Unrestricted**|
|---|---|---|
||**funds**|**funds**|
||**2024**|**2023**|
||**£**|**£**|
|Net loss on disposal of tangible fixed assets|-|8,563|
## **11 Taxation**
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
- 16 -
## **SMITHTON & CULLODEN FREE CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024**
|**12**
**Tangible fixed assets**
**Freehold land**
**and buildings**
**Plant and**
**equipment**
**Fixtures and**
**fittings**
**£**
**£**
**£**
**Cost**
At 1 January 2024
2,328,609
92,500
88,474
Additions
-
415
430
At 31 December 2024
2,328,609
92,915
88,904
**Depreciation and impairment**
At 1 January 2024
442,856
82,869
73,802
Depreciation charged in the year
36,450
1,861
6,414
At 31 December 2024
479,306
84,730
80,216
**Carrying amount**
At 31 December 2024
1,849,303
8,185
8,688
At 31 December 2023
1,885,753
9,632
14,672
Included in freehold property is £506,100 of land which is not depreciated.
**13**
**Debtors**
**Amounts falling due within one year:**
Other debtors
**14**
**Creditors: amounts falling due within one year**
Other creditors
**15**
**Retirement benefit schemes**
**Defined contribution schemes**
Charge to profit or loss in respect of defined contribution schemes||**Computers**
**£**
14,332
-
14,332
12,519
607
13,126
1,206
1,813
**2024**
**£**
96,001
**2024**
**£**
51,752
**2024**
**£**
8,514|**Total**
**£**
2,523,915
845|
|---|---|---|---|
||||2,524,760|
||||612,046
45,332|
||||657,378|
||||1,867,382|
||||1,911,870|
||||**2023**
**£**
13,486|
||||**2023**
**£**
30,144|
||||**2023**
**£**
8,353|
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
- 17 -
## **SMITHTON & CULLODEN FREE CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024**
## **16 Restricted funds**
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
|**At 1**
Development fund
Building and maintenance fund
Sunday school fund
Fun time Toddlers
Missions committee
Missions other
Lunch club
Community Pop in
Compassion in crisis
Special appeals
Tornagrain
Youth fellowship
Breakfast club
**Previous year:**
**At 1**
Development fund
Building and maintenance fund
Sunday school fund
Fun time Toddlers
Missions committee
Missions other
Lunch club
Pop in
Compassion in crisis
Special appeals
Tornagrain|**January**
**2024**
**Incoming**
**resources**
**Resources**
**expended**
**Transfers**
**At 31**
**December**
**2024**
**£**
**£**
**£**
**£**
**£**
(41,487)
88,926
(120,162)
72,723
-
9,591
14,714
(24,635)
330
-
32
165
(349)
173
21
1,982
758
(617)
-
2,123
6,808
44,813
(46,828)
6,000
10,793
344
3,000
(1,136)
-
2,208
9
-
-
-
9
800
150
(441)
-
509
6,346
27,845
(11,411)
-
22,780
(100)
2,393
(2,126)
-
167
45,961
302,366
(127,494)
8,885
229,718
-
1,739
(3,110)
1,624
253
-
375
(217)
-
158
30,286
487,244
(338,526)
89,735
268,739
**January**
**2023**
**Incoming**
**resources**
**Resources**
**expended**
**Transfers**
**At 31**
**December**
**2023**
**£**
**£**
**£**
**£**
**£**
41,900
86,655
(157,748)
(12,294)
(41,487)
20,379
25,805
13,452
(50,045)
9,591
638
1
(3,035)
2,428
32
1,487
579
(84)
-
1,982
957
29,139
(32,474)
9,186
6,808
-
13
(2,446)
2,777
344
4,553
34
-
(4,578)
9
1,034
50
(284)
-
800
7,514
6,280
(7,629)
181
6,346
351
-
-
(451)
(100)
14,147
58,118
(64,083)
37,779
45,961
92,960
206,674
(254,331)
(15,017)
30,286|
|---|---|
- 18 -
**SMITHTON & CULLODEN FREE CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024**
## **16 Restricted funds (Continued)**
## Development Fund:
Restricted for the of payment of staff payroll and other staff costs.
## Building and Maintenance Funds:
Restricted the purchase, rent and upkeep of Church buildings.
## Tornagrain Funds:
Restricted for Tornagrain Community Church
## Missions Funds:
These funds have been given for the support of missionary work and controlled by the Missions Committee.
## Other Restricted Funds:
Other restricted funds are created for special appeals.
## Transfers between funds:
During the year transfers from general funds have been received by several restricted funds in order to meet the expense related to those funds.
## **17 Unrestricted funds**
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**
Designated assets
General funds
**Previous year:**
**At**
General funds
Designated assets|**1 January**
**2024**
**Incoming**
**resources**
**Resources**
**expended**
**£**
**£**
**£**
1,920,245
-
(45,332)
71,905
338,859
(296,343)
1,992,150
338,859
(341,675)
**1 January**
**2023**
**Incoming**
**resources**
**Resources**
**expended**
**£**
**£**
**£**
47,883
337,787
(327,182)
1,964,437
-
(45,792)
2,012,320
337,787
(372,974)|**Transfers**
**At 31**
**December**
**2024**
**£**
**£**
(7,531)
1,867,382
(82,204)
32,217
(89,735)
1,899,599
**Transfers**
**At 31**
**December**
**2023**
**£**
**£**
13,417
71,905
1,600
1,920,245
15,017
1,992,150|
|---|---|---|
## General Funds:
These are the free reserves of the charity, available for use as the charity sees fit.
## Designated Asset Funds:
This fund has been set up to represent the charity's use of tangible fixed assets.
- 19 -
**SMITHTON & CULLODEN FREE CHURCH**
**NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024**
## **17 Unrestricted funds (Continued)**
## Transfers between funds:
During the year transfers from general funds have been made to several restricted funds in order to meet the expense related to those funds.
## **18 Analysis of net assets between funds**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2024**
**2024**
**£**
**£**
**At 31 December 2024:**
Tangible assets
1,867,382
-
Current assets/(liabilities)
32,217
268,739
1,899,599
268,739
**Unrestricted**
**Restricted**
**funds**
**funds**
**2023**
**2023**
**£**
**£**
**At 31 December 2023:**
Tangible assets
1,911,870
-
Current assets/(liabilities)
80,280
30,286
1,992,150
30,286|**Total**
**2024**
**£**
1,867,382
300,956|
|---|---|
||2,168,338|
||**Total**
**2023**
**£**
1,911,870
110,566|
||2,022,436|
## **19 Events after the reporting date**
Over the last few years Smithton and Culloden Free Church of Scotland has been raising funds and putting structures in place to plant a new church, Tornagrain Community Church. Since the year end Tornagrain Community Church has been established as a church in its own right and a significant proportion of the funds raised and assets acquired for this new church have been transferred across to the new church. This will have a significant impact on the balance sheet of Smithton and Culloden Free Church as it held funds of £213,722 for Tornagrain Community Church at the year end.
## **20 Related party transactions**
During the year 4 trustees received reimbursement for out of pocket expenses of £2,477. The Trustees, as a Board, collectively made donations to the charity of £46,270.
- 20 -
## **SMITHTON & CULLODEN FREE CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024**
|**21**
**Cash generated from/(absorbed by) operations**
Surplus/(deficit) for the year
**Adjustments for:**
Investment income recognised in statement of financial activities
(Gain)/loss on disposal of tangible fixed assets
Depreciation and impairment of tangible fixed assets
**Movements in working capital:**
(Increase)/decrease in debtors
Increase/(decrease) in creditors
**Cash generated from/(absorbed by) operations**|**2024**
**£**
145,902
(5,989)
-
45,333
(82,515)
21,608
124,339|**2023**
**£**
(82,844)
(880)
8,563
45,604
3,518
(9,968)
(36,007)|
|---|---|---|
## **22 Analysis of changes in net funds**
The charity had no material debt during the year.
## **23 Non-audit services provided by auditor**
In common with many business of our size and nature, we use our auditor to assist with the preparation of the financial statements.
- 21 -