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2024-12-31-accounts

Trustees’ Report and Financial Statements

Year Ended 31 December 2024

Scottish Charity Registration No: SC012925

Free Church of Scotland

Contents of the Financial Statements for the year ended 31 December 2024

Page
Report of the Trustees 1 - 7
Report of the Auditor 8 - 11
Statement of Financial Activities 12
Balance Sheet 13
Statement of Cash Flows 14
Notes to the Financial Statements 15-40

Free Church of Scotland

Report of the Trustees for the year ended 31 December 2024

The Trustees are pleased to present their annual report and financial statements of the charity for the year ended 31[st] December 2024. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity’s trust deed, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102).

Objectives and Activities

The objective of the Free Church of Scotland is to conform as closely as possible to the Biblical idea of a Christian Church.

The principal activity of the Church is the conduct of public worship and associated matters in the context of local congregations. Other activities in support of the Church’s overall mission include:

For purposes of financial management and reporting the above activities are associated with the significant activity areas of: (a) Mission; (b) Seminary; (c) Recruitment & Training; and (d) Communications, Publications & Resources; (e) Disaster & Relief. A summary of expenditure by significant charitable activities is as follows:

2024 2023
Activity £ £
Mission 4,341,305 3,727,999
Seminary 810,174 757,639
Recruitment and Training 186,346 152,359
Communications, Publications & Resources 115,969 112,134
Disaster & Relief 23,577 20,105
Other Charitable Activity 286,776 263,519
5,764,147 5,033,755

The Trustees, in conjunction with other Boards and Committees, monitor activity in the above areas. Often the significant impact of the Church’s activities is longer-term and by its nature the ‘outcome’ of mission work/spiritual development is difficult to accurately measure or observe but the Trustees do make use of a small number of numerical measures (e.g. participation rates in public worship, donations and congregational remittance levels, student numbers) to assist monitoring.

The Trustees believe that the activities of the Church contribute to its overall objective, and its charitable purpose, and are of benefit to wider society.

The Church makes some grants to individuals and organisations that are generally known to the Trustees and the Church. The beneficiaries are involved in activities or ministries compatible with the Church’s objectives.

The Trustees are grateful to many members of the Church who sacrificially give up their time in Christian service through volunteering, both within local congregations and in the Church more widely. In addition to participating in boards and committees, volunteers contribute enormously to the running of the Church’s youth camps, conferences and the work of the Seminary.

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Free Church of Scotland

Report of the Trustees for the year ended 31 December 2024

Achievements and Performance

Despite the challenging economic situation, the majority of congregations managed to increase their central remittance levels. Remittances from congregations increased by 6.4% for 2024 (2023: decrease of 3.1%). The income received helped support congregational ministry, the running of the Seminary and the various mission activities of the Free Church.

There were 323 students enrolled in the Seminary for courses in academic year 2024/25 (2023/24: 307). The annual fee income increased in line with the increase in students.

In addition to congregational ministry, the Church continued to support, through grants and other direct support, significant mission work both internationally and at home through the work of the Mission Board. The Church also supported international relief work through donations from the Disaster & Relief Fund.

Free Church Youth Camps organised 11 camps in July 2024. In total 305 campers attended, with 99 leaders and 28 cooks volunteering.

During 2024, the Trustees continued to work with other boards and committees to promote the various aspects of the work of the Church, support key activities and to raise finance through congregational remittances and other income. Cash flow through the year was assisted by the monthly targets provided to congregations through the remittance system.

The Trustees continue to work with various internal stakeholders to seek ways to generate additional income, to invest for growth, and to channel expenditure in line with strategic priorities.

As noted below, a number of boards and committees are appointed to manage the various central activities of the Church. These boards and committees are required to submit reports to the General Assembly outlining the work undertaken during the year. Copies of these reports are available from the Central Office on request.

Financial review

Results for the year

The financial statements for the year are set out in pages 12 to 40. The Statement of Financial Activities on page 12, shows a negative net movement in funds of £1,138,077 (2023: positive net movement in funds £759,512). This was largely due to pension scheme adjustments to the defined benefit pension scheme following the purchase of a Buy-In policy.

An actuarial gain on the defined benefit pension scheme amounting to £41,000 was recorded (2023: loss of £692,753). There was a gain in the value of investments of £419,494, compared with a gain of £268,793 in 2023. Various world events meant that there was continuing volatility in the pension and investment markets during the year.

The increase in expenditure for the year was in line with budget. Before the effect of movements in the market value of investments, currency movements, the contribution to the pension scheme towards the Buy-In policy and the actuarial gain on the pension scheme, there was net income of £691,341 (2023: £1,193,667) £439,739 of which was the gain on the sale of a property (2023: none).

The net movement in funds in future years is likely to continue to be influenced by movements on the investment funds.

Principal sources of funding

The Church receives the bulk of its income from Free Church congregations and from donations by individuals. The Church also receives income from legacies, services, rental properties and investments.

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Free Church of Scotland

Report of the Trustees for the year ended 31 December 2024

Reserves

The Trustees have a reserves policy to maintain a minimum level of unrestricted funds, i.e. funds not restricted, committed or invested in fixed assets, amounting to a minimum of £1,200,000. The Trustees have decided that these reserves should be split between the General Fund (£1,000,000) and funds designated for International Mission (£200,000). The amount held for International Mission work is higher relative to spend incurred reflecting the level of overseas grant commitments which the Church has made as well as possible emergency costs. The Trustees believe that the reserves are sufficient to enable the ongoing work of the Church to be maintained. At 31 December 2024, the General Fund amounted to £5,870,027 (2023: £7,328,658) and the International Mission Fund was £200,000 (2023: £200,000). The Trustees regularly review cash requirements and funds with a view to determining if an element of the General Fund can be used to further the work of the Church through the designated Development Fund or other funds.

Total reserves, including the net book value of fixed assets and balances on restricted funds, amounted to £15,473,184 (2023: £16,611,261).

Investment Policies & Portfolio Performance

Various Acts of the General Assembly govern the investment policy of the Church. The investments are managed on a discretionary basis by professional investment managers. The primary objectives of the investments are to achieve long-term capital growth to protect the capital value of the portfolio against inflation to ensure that future charitable objectives can be met and to generate a sustainable level of income to help cover operations costs, grants and beneficiaries. Ethical restrictions are placed on the investment managers in their choice of investments. The fund manager reports regularly and normally meets at least two times per year with the Church’s Investment Committee.

The market value of the investment portfolio on 31 December 2024 was £6,296,272 (2023: £5,812,531). This represented an increase of 8.3% year on year. The investments generated income of £151,780 in the period (2023: £153,383). The Trustees are satisfied that the portfolio has been managed in accordance with the objectives set.

Funds Held on Behalf of Congregations

As the central Church body, funds totalling £4,691,841 (2023: £5,391,285) are held on behalf of Free Church congregations. These are held under a variety of conditions set out in Acts of Assembly or other legal measures and are invested in stocks and shares, loans to other congregations or held as cash balances. They are recorded and accounted for as distinct funds in the Church’s accounts and are disclosed within Note 30.

Free Church Pension Scheme

The defined benefit Free Church Pension Scheme, which is closed to new members and to future accrual of benefits for existing members, had a £nil accounting surplus/deficit on 31 December 2024 (2023: £nil). During 2024, the Church paid £549,153 (2023: £539,882) into the Scheme as part of the funding plan. In addition, the Church contributed a further £1,928,847 towards the premium paid by the Scheme for a Buy-In policy from Just Retirement Limited. The Church has granted a standard security over the office buildings at the Mound in Edinburgh which will remain in place until the Buy-Out of the Scheme completes.

Future Plans

The vision of the Free Church is of A Healthy Gospel Church for Every Community in Scotland. The Board of Trustees is continuing to work with the other Boards and Committees to support Presbyteries, Congregations and individual members in their growth in spiritual health. The Free Church is actively engaged in the planting of new churches, the revitalisation of existing congregations, the training of ministers and church leaders, as well as ongoing programmes of local ministry, mission, and youth work, in Scotland and beyond. Some aspects of these future plans are contained within the annual reports to the General Assembly.

As the vision and strategy is developed in the coming year the Trustees remain committed to financial sustainability through a programme of expenditure that is in line with resources and anticipated income. Principal Risks and Uncertainties

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Free Church of Scotland

Report of the Trustees for the year ended 31 December 2024

The Board of Trustees is responsible for assessing the risks to which the Church is exposed on an ongoing basis and for updating and maintaining the risk register. The Board seeks to identify and assess the material risks facing the Church and agree the measures aimed at mitigating these risks. During the year, the Board allocated time within its regular meetings to consider and re-evaluate the risk register. The Board has identified major risks and, as far as possible, actions and procedures have been established to mitigate these risks.

The principal risks and uncertainties identified fall into seven different categories and include:

Current plans and strategies to manage principal risks and uncertainties include: monitoring of applicable regulations and updating guidance materials for congregations; engagement with other churches/groups involved in policy matters; robust budgeting and cashflow; continuous professional development for ministers; and regular financial reporting. The Board will continue to review risks and mitigating strategies.

Structure, Governance and Management

Charitable Status and Governing Documents

The Free Church of Scotland is established by Constitution. The Church is a registered Scottish Charity (No. SC012925). An explanatory document explaining the origins of the Free Church of Scotland is available on request from the principal address on page 6 of this report. The paper gives in summary the historical background to the Church coming into being in 1843 and lists documents in which are embodied the constitution of the Church.

The Free Church of Scotland

The Free Church of Scotland currently has around 110 congregations in Scotland, as well as one in London, three in North America, and sister churches founded by mission work in India, Peru and South Africa. The Church also has a theological seminary in the heart of Edinburgh and supports mission work around the world.

Dating from 1843 but with its roots in the Reformation, the Church owes its distinctive title to its historical struggle to remain ‘free’ from state interference in its internal affairs. The Church has close and active relations with many other Reformed churches of Jesus Christ throughout the world and stands firmly in the tradition which accepts the Bible in its entirety as the Word of God and, therefore, derives its forms of teaching, worship, ministry and government from it. The main emphasis of the Church’s worship is the preaching of the gospel - the good news of a free and sovereign salvation through Jesus Christ alone.

The Church is Presbyterian in Church Government and is ruled by Presbyters (ministers and elders) meeting in Kirk Session (at congregational level), Presbytery and General Assembly. This means that from a doctrinal and disciplinary point of view, the Church is governed according to the broad structure outlined in the figure below with Presbyteries organised on a geographic basis. Within their own spheres, the various bodies have both regulative and disciplinary powers and are referred to as the Courts of the Church. Matters of difficulty and dispute are referable from the smaller to the larger bodies, with the General Assembly being the final Court of Review. The General Assembly is not considered to have absolutely binding authority but is expected to act legislatively as well as judicially in a manner consistent with the ecclesiastical laws and constitution of the Church.

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Free Church of Scotland

Report of the Trustees for the year ended 31 December 2024

Several boards and committees of the General Assembly manage the central activities of the Church. The Board of Trustees is entrusted with management of the central assets and investments of the Church, for monitoring financial performance, setting financial policy and ensuring legal compliance. Other committees take responsibility for issues such as ministers’ working conditions, mission and youth work.

At a local level, each Free Church congregation is governed and administered by elected office bearers (all volunteers) and its minister. The Kirk Session, being the minister and locally elected elders, has responsibility for spiritual oversight, while the Deacons’ Court, composed of Kirk Session members plus elected deacons, oversees financial and property matters. Locally elected Trustees hold legal title to a congregation’s assets which will typically include one church building and a manse. Accounts are prepared for each congregation and the Annual General Meeting of the entire congregation reviews them. Individual members of the Free Church are members of the local congregation rather than of the wider Free Church.

Congregations are financially autonomous units and although they are requested to remit a portion of income to central funds (to cover, at a minimum, the costs of having a minister), the local office bearers have ultimate discretion over the amount that is remitted. Similarly, these office bearers, and particularly the minister, have autonomy to decide on the activities engaged in at local level as long as these are consistent with their ordination vows.

The Board of Trustees does not have direct financial and operating control and does not exercise dominant influence over the local congregations and therefore the congregations' financial statements are not consolidated into the denomination's financial statements.

Appointment of Trustees

The Assembly Clerks’ Office is responsible for seeking nominations for candidates to serve as members of the Board of Trustees. Appointments are made by the General Assembly which meets in May of each year.

Eligibility for service on the Board of Trustees is restricted to elected office bearers of Free Church congregations and therefore all appointees are fully aware of the aims and objectives of the Church. All Trustees are made aware of their duties and responsibilities as Charity Trustees under the Charities and Trustee Investment (Scotland) 2005 Act and are provided with guidance materials issued by OSCR.

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Free Church of Scotland

Report of the Trustees for the year ended 31 December 2024

Reference and Administrative information

Registered Name of Charity: Free Church of Scotland Other names used: Edinburgh Theological Seminary Charity Registration Number: SC012925 Address: 15 North Bank Street, The Mound, Edinburgh, EH1 2LS Tel: 0131-226-5286 www.freechurch.org

Board of Trustees

The duties and responsibilities of Charity Trustees are vested in the members of the Board of Trustees:

Responsibility for the day-to-day management of the Church’s central administration is delegated to the Chief Executive Officer, , who is supported by other senior members of staff including the Finance Manager. The Trustees review and set the remuneration of senior personnel.

Bankers: Clydesdale Bank PLC (t/a Virgin Money), 83 George Street, Edinburgh, EH2 3ES Bank of Scotland, 300 Lawnmarket, Edinburgh, EH1 2PH Solicitors: Blackadders LLP, 40 Torphichen Street, Edinburgh, EH3 8JB Auditor: Azets Audit Services, Quay 2, 139 Fountainbridge, Edinburgh, EH3 9QG Investment Managers: RBC Brewin Dolphin, Sixth Floor, Atria One, 144 Morrison Street, Edinburgh, EH3 8BR

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Free Church of Scotland

Report of the Trustees for the year ended 31 December 2024

Board of Trustees’ Responsibilities

The Trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and regulations.

Charity law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Standards and applicable law). Under charity law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Church and of the net income and expenditure of the Church for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Church and to enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the Constitution. They are also responsible for safeguarding the assets of the Church and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of Information to the Auditor

To the knowledge and belief of each Trustee at the time the report is approved:

On behalf of the Trustees

Trustee

Dated: 2nd May 2025

7

Free Church of Scotland

Report of the Independent Auditor to the Trustees for the year ended 31 December 2024

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF FREE CHURCH OF SCOTLAND FOR THE YEAR ENDED 31 DECEMBER 2024

Opinion

We have audited the financial statements of Free Church of Scotland for the year ended 31 December 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council’s Ethical Standard, and we have fulfilled our 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 audit opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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,

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Free Church of Scotland

Report of the Independent Auditor to the Trustees for the year ended 31 December 2024

except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:

Responsibilities of the trustees

As explained more fully in the Statement of Trustee Responsibilities set out on page 7, 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 liquidate the charity or 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.

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Free Church of Scotland

Report of the Independent Auditor to the Trustees for the year ended 31 December 2024

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

The extent to which the audit was considered capable of detecting irregularities including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the FRC’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the charity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the charity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the charity that were contrary to applicable laws and regulations, including fraud.

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

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

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

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Free Church of Scotland

Report of the Independent Auditor to the Trustees for the year ended 31 December 2024

Auditor’s responsibilities for the audit of the financial statements (continued)

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

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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 (as amended). Our audit work has been undertaken so that we might state to the charity’s trustees, as a body, 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.

Azets Audit Services Statutory Auditor Chartered Accountants

Quay 2 139 Fountainbridge Edinburgh EH3 9QG

Date: 02 May 2025

Azets Audit Services 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.

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Free Church of Scotland

Statement of Financial Activities incorporating the Income and Expenditure Accounts for the year ended 31 December 2024

Notes
Income and endowments
from:
Congregational Remittances
Donations
Legacies
4
Charitable activities
5
Investments
6
Gain on disposal of fixed
assets
Total
Expenditure on:
Raising funds – investment
management fees
Charitable activities
7
Pension Scheme
27
Total
Net gains on investments
Net income/(expenditure)
Transfers between funds
29
Actuarial gain/(loss) on
defined benefit pension
scheme
Other losses
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried
forward
Note		 Unrestricted
Funds
Restricted
Funds
Expendable
Endowment
Funds
Endowment
Funds
2024
2023
£
£
£
£
£
1,398,829
3,202,465
-
-
4,601,294
4,324,033
55,743
84,578
1,358
-
141,679
564,665
-
-
8,411
-
8,411
203,835
399,413
269,435
-
-
668,848
614,667
520,950
89,874
6,673
-
617,497
534,832
439,739
-
-
-
439,739
-
2,814,674
3,646,352
16,442
-
6,477,468
6,242,032
21,980
-
-
-
21,980
14,610
1,486,056
4,220,411
57,680
-
5,764,147
5,033,755
2,289,000
-
-
-
2,289,000
-
3,797,036
4,220,411
57,680
-
8,075,127
5,048,365
126,229
75,536
21,366
196,363
419,494
268,793
(856,133)
(498,523)
(19,872)
196,363
(1,178,165)
1,462,460
(263,054)
421,569
-
(158,515)
-
-
41,000
-
-
-
41,000
(692,753)
-
(912)
-
-
(912)
(10,195)
(1,078,187)
(77,866)
(19,872)
37,848
(1,138,077)
759,512
11,916,170
1,765,668
411,210
2,518,213
16,611,261
15,851,749
10,837,983
1,687,802
391,338
2,556,061
15,473,184
16,611,261
23
24
25
25

All results relate to continuing activities. The notes on pages 15 to 40 form part of these financial statements.

12

Free Church of Scotland

Balance Sheet as at 31 December 2024

Notes
Fixed assets
Tangible assets
12
Investments
13
Total fixed assets
Current assets
Stocks
14
Debtors
15
Cash at bank and in hand
16
Total current assets
Debtors - amounts falling due in more than one year
17
Liabilities
Creditors - amounts falling due within one year
18
Net current assets
Total assets less current liabilities
Creditors - Amounts falling due in more than one year
19
Net Assets excluding pension scheme deficit
Defined benefit pension scheme asset
27
Total net assets
The funds of the charity:
Endowment funds
25
Expendable endowment fund
25
Restricted income funds
24
Unrestricted funds
23
Pension Reserve
27
Total charity funds		 2024
2023
£
£
4,655,249
4,274,465
6,296,272
5,812,531
10,951,521
10,086,996
18,890
8,689
473,797
668,048
7,134,049
8,986,919
7,626,736
9,663,656
2,349,763
2,801,524
1,216,341
1,506,749
6,410,395
8,156,907
19,711,679
21,045,427
4,238,495
4,434,166
15,473,184
16,611,261
-
-
15,473,184
16,611,261
2,556,061
2,518,213
391,338
411,210
1,687,802
1,765,668
10,837,983
11,916,170
-
-
15,473,184
**16,611,261 **

The financial statements were approved by the Trustees on 2nd May 2025 and signed on their behalf by the undernoted:

Trustee

The notes on pages 15 to 40 form part of these financial statements.

Charity Number SC012925

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Free Church of Scotland

Statement of Cash Flows for the year ended 31 December 2024

Cash flows from operating activities:
Note
Net cash used in operating activities
32
Cash flows from investing activities:
Dividends and interest from investments
Interest paid to congregations
Proceeds from sale of property, plant and equipment
Purchase of property, plant and equipment
(Increase)/decrease in value of congregational investments
Net cash provided by investing activities
Cash flows from financing activities:
Finance costs relating to Pension Scheme
Net cash used in financing activities
Cash and cash equivalents at the beginning of the reporting period
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the end of the reporting period
16		 2024
2023
£
£
(2,212,653)
(266,293)
617,497
534,832
(176,179)
(162,146)
466,615
-
(428,406)
-
(61,744)
(41,333)
417,783
331,353
(58,000)
(20,000)
(58,000)
(20,000)
8,986,919
8,941,859
(1,852,870)
45,060
7,134,049
8,986,919

Analysis of changes in net debt

Cash in hand As at 1
January
2024
Cash flow
As at 31
December
2024
£
£
£
8,986,919
(1,852,870)
7,134,049
8,986,919
(1,852,870)
7,134,049

The notes on pages 15 to 40 form part of these financial statements.

14

Free Church of Scotland

Notes to the Financial Statements for the year ended 31 December 2024

1. Accounting policies

General Information

These financial statements are presented in pounds sterling (GBP) as that is the currency in which the charity’s transactions are denominated.

The objective of the Free Church is to conform as closely as possible to the Biblical idea of a Christian church.

The Free Church of Scotland is recognised as a charity for tax purposes by HMRC and registered with the Office of the Scottish Charity Regulator (OSCR) under charity number SC012925. The Free Church of Scotland is established by Constitution. Details of the principal address can be found on page 6 of these financial statements.

Basis of Preparation

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, ‘The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland’ (“FRS 102”) (United Kingdom Generally Accepted Accounting Practice), the Statement of Recommended Practice (SORP) ‘Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)’, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended).

The Free Church of Scotland meets the definition of a public benefit entity under FRS102.

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires Trustees to exercise their judgement in the process of applying the accounting policies. Use of available information and application of judgement are inherent in the formation of estimates. Actual outcomes in the future could differ from such estimates. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 2.

The principal accounting policies applied in the preparation of these financial statements are noted below. These policies have been applied consistently to all the years presented in dealing with items which are considered material in relation to the Church’s financial statements unless otherwise stated.

Going concern

The Trustees are of the opinion that the Church can continue to meet its obligations as they fall due for the foreseeable future. The main income flow to the Church is from regular remittances from the congregations in the denomination and these are committed to supporting the Church in the long term. The general reserve is held at a level which would cover any short-term disruption to cash flows while any longer- term reduction in support would be accompanied by a reduction in our cost base, the largest element of which is congregational ministry. In addition, the Board of Trustees monitors income and expenditure including budgeting for several years ahead. As a consequence, the Trustees have prepared the financial statements on the going concern basis, as there are no material uncertainties about its ability to continue.

Recognition and allocation of income

Income is recognised when the Church has legal entitlement to the funds, the receipt is probable, and the amount can be measured reliably. Where practicable, income is related to the operating activities of the Church.

Where there are terms placed on income that limit the Church’s discretion over how that income can be used, that income is shown as restricted income in the accounts.

15

Free Church of Scotland

Notes to the Financial Statements for the year ended 31 December 2024

1. Accounting policies (continued)

Recognition and allocation of income(continued)

Legacies are treated in accordance with Act XII, 2007. Entitlement to legacy income exists when the Church has sufficient evidence that a gift has been left, the executor is satisfied that the gift will not be required to satisfy claims on the estate and any conditions are within the control of the charity or have been met. Where a legacy is subject to the interest of a life tenant, the legacy is not recognised until the death of the life tenant. Where legacies have been notified to the Church and the criteria for income recognition have not been met, the legacy is treated as a contingent asset and disclosed if material. Legacy income is measured at fair value, generally the cash amount receivable, and is discounted if deferred for more than 12 months. The unwinding of the discount is recognised as interest receivable.

Interest receivable is recognised using the effective interest rate applicable to the asset and dividend income is recognised when the right to receipt is established and is measured at fair value, generally the transaction value.

Gift aid is treated as part of the related gift unless the donor or terms of appeal have specified otherwise and is credited when receivable.

Recognition and allocation of expenditure

Expenditure is recognised when the Church has entered into a legal or constructive obligation and related where practicable to the operating activities of the Church. Where possible, expenditure is attributed directly to the function to which it relates.

Raising funds comprises those costs which are associated with the generation of income from sources other than from undertaking charitable activities and include investment management costs.

Charitable expenditure comprises those costs incurred by the Church in the delivery of its charitable activities and services.

Governance costs include those costs incurred in the governance of the Church’s assets and are primarily associated with meeting the constitutional and statutory requirements of the Church. The allocation of governance costs is shown in Note 9.

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, e.g. on the basis of costs directly attributable to the charitable activity. The allocation of support costs is shown in Note 8.

Foreign currency

Transactions in foreign currencies are recognised at the rate of exchange at the date of the transaction. Monetary assets and liabilities are translated into sterling at the exchange rate on the Balance Sheet date. All exchange differences are recognised through the Statement of Financial Activities.

Post box accounts

The Church is sent gifts from various congregations and individuals to be passed on to other charities. These gifts are accounted for through a post box account and do not form part of the financial statements.

Funds

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

Expendable Endowment funds comprise capital given for specific purposes but are convertible to income.

Permanent Endowment funds comprise capital that was given to provide an income stream to various funds of the Church. The capital on these funds may never be spent at any time.

16

Free Church of Scotland

Notes to the Financial Statements for the year ended 31 December 2024

1. Accounting policies (continued)

Funds (continued)

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

Designated funds represent unrestricted funds earmarked by the Trustees for particular purposes.

Tangible fixed assets

The Church capitalises assets with a value exceeding £1,000.

Motor vehicles and fixtures and equipment are stated at cost less accumulated depreciation and impairment losses.

Heritable property is stated at deemed cost at 1[st] January 2014.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:

Land & Buildings Nil Motor Vehicles Fixtures and equipment 25% straight line

Buildings are held at deemed cost and are not depreciated as the residual value is considered by the Trustees to be no lower than their deemed cost.

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

Heritage assets

The Church owns a number of heritage assets which have been donated or purchased since 1843, the most significant being a painting of the first General Assembly of the Church. Other items include Victorian furniture, busts and documents dating from the 16[th] and 17[th] century relating to Scottish church history. The Trustees consider these items to be heritage assets due to their unique historical qualities.

These heritage assets are not recognised in the Balance Sheet as cost information is not readily available and the Trustees believe the benefits of obtaining valuations for these items would not justify the cost and would not be sufficiently reliable to provide a meaningful indication of value.

Acquisitions and gifts of items of historical or other heritage value to the Church are not generally made. The majority of heritage assets have been held for over 100 years.

Conservation is of importance to the Church in preserving its history for current and future generations and the Church is committed to managing its heritage assets accordingly.

The management of the heritage assets of the Church are overseen by its Board of Trustees, the members of which are appointed by the General Assembly.

At present, the Board of Trustees does not consider it in the interests of the Church to dispose of heritage assets.

17

Free Church of Scotland

Notes to the Financial Statements for the year ended 31 December 2024

1. Accounting policies (continued)

Share pool and investments

The Share Pool consists of investments attributable to those Funds and Endowments which use the accounting method (used by unit trusts) of sharing equitably investment market value and income. All money understood to be intended for long-term investment is held in the Share Pool except for a few small funds which have specific investments. Investments held are acquired in accordance with guidelines set by the Board of Trustees

Quoted investments are stated at fair value on the Balance Sheet date. Fair value is based on quoted market prices in an active market. Gains and losses arising on revaluation are recognised in the Statement of Financial Activities in the period in which they arise and are apportioned to funds dependent on the number of share pool units held within each fund.

Pensions

The Church operates one non-contributory defined benefit pension scheme (the Scheme) which requires contributions to be made to a separately administered fund. Contributions to the Scheme have been made in accordance with a Schedule of Contributions agreed between the Church and the Pension Trustee. As needed, provision is made for the accrued unfunded liability to provide pensions to members of the Scheme as they fall due. On 4[th] December 2024 the Scheme entered into a Buy-In transaction with Just Retirement Limited, with the Church contributing an additional one-off amount towards the total premium paid by the Scheme. This amount has been charged to the Statement of Financial Activities. The Buy-In policy now covers the ongoing costs of providing pensions to the existing and future pensioners who are members of the Scheme.

Since 1 January 1990 contributions to the Scheme have been charged to the Statement of Financial Activities so as to spread the cost of providing pensions to future pensioners over the members’ working lives. With effect from 1 April 2022 a revised annual contribution to the scheme had been agreed. This has now been superseded by the purchase of the Buy-In policy.

As of 31 December 2007, the Pension Scheme was closed to new members and to future accrual of benefits for existing members. Ministers and other employees of the Church are now invited to participate in a Group Personal Pension Scheme (a defined contribution scheme currently operated by Standard Life) with the Church making contributions on behalf of members.

Since 1 February 2014 the Church has complied with legislation on pension auto-enrolment.

Taxation

No taxation is provided for given the charitable status of the Church.

VAT

The Church is registered for VAT and accounts for VAT on a partial exemption basis, accordingly irrecoverable VAT is included within the cost category to which it relates.

Stock

Stocks are stated at the lower of cost and net realisable value. Provision is made for obsolete, slow moving or defective stock where appropriate. Items donated for resale or distribution are not included in the financial statements until they are sold or distributed.

Debtors

Trade debtors are amounts due from customers for merchandise sold or services performed. Trade debtors are recognised at the undiscounted amount of cash receivable, which is normally invoice price, less any allowances for doubtful debts.

18

Free Church of Scotland

Notes to the Financial Statements for the year ended 31 December 2024

1. Accounting policies (continued)

Loans from the Board of Trustees

Concessionary loans are made to congregations at rates normally between 0% and 3% above the Bank of England base rate and are initially measured at the amount paid and subsequently adjusted to reflect repayments, accrued interest or any impairment.

Cash and cash equivalents

Cash and cash equivalents consist of cash on hand and balances held with banks and are measured at fair value. A range of deposit accounts are held with varying notice periods and interest rates reflecting expected cashflow requirements.

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired. They are recognised at the undiscounted amount owed to the supplier, which is normally the invoice price.

Congregational balances held on deposit and in the share-pool are funds held on behalf of various congregations, mainly arising from endowment funds or sale of property. Under the Model Trust Deed, the Church continues to have a right to direct how these funds are applied. Recommended accounting practice for charities holding funds as custodian is for the amounts to be excluded from the accounts. However, the basis for holding the funds and the nature of the Church’s relationship with congregations is such that the Trustees consider it appropriate to show these amounts as investments and creditors in the balance sheet in order to provide a true and fair view.

Financial assets and financial liabilities

Financial instruments are recognised in the Balance Sheet when the Church becomes a party to the contractual provisions of the instrument. Financial instruments are initially measured at transaction price unless the arrangement constitutes a financing transaction which includes transaction costs for financial instruments not subsequently measured at fair value. Subsequent to initial recognition, they are accounted for as set out below. A financing transaction is measured at the present value of the future payments discounted at the market rate of interest for a similar debt instrument.

Financial instruments are classified as either ‘basic’ or ‘other’ in accordance with Chapter 11 of FRS102.

At the end of each reporting period, basic financial instruments are measured at amortised cost using the effective interest rate method. All financial instruments not classified as basic are measured at fair value at the end of the reporting period with the resulting changes recognised in income or expenditure. Where the fair value cannot be reliably measured, they are recognised at cost less impairment.

2. Critical judgements and estimates

In preparing the financial statements Trustees make estimates and assumptions which affect reported results, financial position and disclosure of contingencies. Use of available information and application of judgement are inherent in the formation of the estimates, together with past experience and expectations of future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates.

Legacy income is measured at fair value, but where part of a legacy left to the Church includes property or shares to be sold, judgement is used to estimate the amount receivable.

The Free Church of Scotland pension scheme valuation is based on estimates which are reviewed each year in consultation with the Actuary who provides advice on the appropriate values to use.

19

Free Church of Scotland

Notes to the Financial Statements for the year ended 31 December 2024

3. Comparative Statement of Financial Activities for the year ended 31 December 2023

Income and endowments from:
Congregational Remittances
Donations
Legacies
Charitable activities
Investments
Gain on disposal of fixed assets
Total
Expenditure on:
Raising funds
Charitable activities
Total
Net gains on investments
Net income/(expenditure)
Transfers between funds
Actuarial loss on defined benefit
pension scheme
Other losses
Net movement in funds		 Unrestricted
Funds
Restricted
Funds
Expendable
Endowment
Fund
Endowment
Funds
2023
£
£
£
£
£
1,480,656
2,843,377
-
-
4,324,033
126,515
416,230
21,920
-
564,665
11,284
46,284
146,267
-
203,835
365,761
248,906
-
-
614,667
444,863
73,535
16,434
-
534,832
-
-
-
-
-
2,429,079
3,628,332
184,621
-
6,242,032
14,610
-
-
-
14,610
1,202,044
3,785,800
45,911
-
5,033,755
1,216,654
3,785,800
45,911
-
5,048,365
72,683
48,338
13,673
134,099
268,793
1,285,108
(109,130)
152,383
134,099
1,462,460
(370,815)
385,758
(14,943)
-
-
(692,753)
-
-
-
(692,753)
-
(10,195)
-
-
(10,195)
221,540
266,433
137,440
134,099
759,512

4. Legacies

During 2012, the Church was notified of the bequest of a property which at present is subject to a life rent. The property has been independently valued at £210,000. No recognition of this has been made in the accounts in accordance with the requirements of the Charities SORP.

5. Income from charitable activities

Seminary fees
Camps income
Courses & conferences
Rent & service charges
Sales of goods & services
Seminary fees
Camps income
Courses & conferences
Rent & service charges
Sales of goods & services		 Unrestricted
Funds
Restricted
Funds
Expendable
Endowment
Fund
Endowment
Funds
2024
£
£
£
£
£
-
246,564
-
-
246,564
147,958
-
-
-
147,958
13,218
3,726
-
-
16,944
178,378
11,794
-
-
190,172
59,859
7,351
-
-
67,210
399,413
269,435
-
-
668,848
Unrestricted
Funds
Restricted
Funds
Expendable
Endowment
Fund
Endowment
Funds
2023
£
£
£
£
£
-
230,486
-
-
230,486
125,920
-
-
-
125,920
13,065
4,115
-
-
17,180
176,895
10,285
-
-
187,180
49,881
4,020
-
-
53,901
365,761
248,906
-
-
614,667

20

Free Church of Scotland

Notes to the Financial Statements for the year ended 31 December 2024

6. Investment income

Interest on loans from Trustees
Dividend income
Bank interest
Interest on loans from Trustees
Dividend income
Bank interest		 Unrestricted
Funds
Restricted
Funds
Expendable
Endowment
Fund
Endowment
Funds
2024
£
£
£
£
£
115,117
-
-
-
115,117
55,233
89,874
6,673
-
151,780
350,600
-
-
-
350,600
520,950
89,874
6,673
-
617,497
Unrestricted
Funds
Restricted
Funds
Expendable
Endowment
Fund
Endowment
Funds
2023
£
£
£
£
£
128,450
-
-
-
128,450
63,414
73,535
16,434
-
153,383
252,999
-
-
-
252,999
444,863
73,535
16,434
-
534,832

7. Charitable activities

2024
Activity
Mission
Seminary
Recruitment & Training
Communications,
Publications & Resources
Disaster & Relief
Other Charitable Activity
2023
Activity
Mission
Seminary
Recruitment & Training
Communications,
Publications & Resources
Disaster & Relief
Other Charitable Activity		 Staff costs
Grant
Funding
Other
direct
costs
Governance
costs
Support
costs
2024
Total
£
£
£
£
£
£
2,809,026
404,679
407,287
138,876
581,437
4,341,305
499,974
7,025
200,719
27,143
75,313
810,174
25,413
122,858
16,541
6,321
15,213
186,346
60,749
-
29,190
3,449
22,581
115,969
-
20,749
103
800
1,925
23,577
-
7,099
200,734
7,971
70,972
286,776
3,395,162
562,410
854,574
184,560
767,441
5,764,147
(Note 10)
(Note 11)
(Note 9)
(Note 8)
Staff costs
Grant
Funding
Other
direct
costs
Governance
costs
Support
costs
2023
Total
£
£
£
£
£
£
2,729,161
209,352
291,900
132,656
364,930
3,727,999
471,410
3,798
189,014
27,276
66,141
757,639
29,019
89,090
16,050
5,509 12,691
152,359
56,576
- 32,955
3,677
18,926
112,134
-
17,500 203
727 1,675
20,105
-
1,801 192,802
7,991 60,925
263,519
3,286,166
321,541
722,924
177,836
525,288
5,033,755
(Note 10)
(Note 11)
(Note 9)
(Note 8)

21

Free Church of Scotland

Notes to the Financial Statements for the year ended 31 December 2024

8. Support costs

Whenever possible, costs are allocated directly to particular activities. Support costs were then identified and apportioned to governance costs or charitable activities as appropriate. A breakdown of the support costs together with the basis of apportionment to activities is shown in the tables below.

Central office
Free Church pension
Edinburgh building
General		 Staff Costs
Other
Costs
2024
Staff Costs
Other
Costs
2023
£
£
£
£
£
£
262,809
56,803
319,612
233,674
66,236
299,910
230,000
5,388
235,388
18,000
3,712
21,712
-
101,829
101,829
-
83,600
83,600
22,010
88,602
110,612
30,118
89,948
120,066
514,819
252,622
767,441
281,792
243,496
525,288

Support costs were allocated on the following basis:

Cost Heading Basis of Allocation
Central office – salary costs Analysis of staff roles, with general support activity
allocated on the basis of activity expenditure
Central office – other costs Activity expenditure
Free Church pension Number of pensioners related to activities
Edinburgh building Analysis of floor area
General Activity expenditure

9. Governance costs

Governance costs were identified either directly or as an apportionment of support costs as indicated in Note 8 above. The main elements of governance costs are shown in the table below. There were apportioned to activities on the basis of expenditure on each activity.

Committee expenses
Assembly arrangements
Ecumenical relations
Audit fees
Legal fees - general
Staff time		 Salary
costs
Other
direct
costs
2024
Salary
costs
Other
direct
costs
2023
£
£
£
£
£
£
-
13,491
13,491
- 8,198
8,198
14,188
19,105
33,293
10,131
10,761
20,892
-
8,579
8,579
-
8,033
8,033
-
23,068
23,068
-
26,470
26,470
-
7,274
7,274
-
19,525
19,525
98,855
-
98,855
94,718
-
94,718
113,043
71,517
184,560
104,849
72,987
177,836

22

Free Church of Scotland

Notes to the Financial Statements for the year ended 31 December 2024

10. Employee costs

Gross salaries
Employer's national insurance
Defined contribution pension costs
Honoraria
Defined benefit administration costs
Pension scheme settlements & curtailments
Group life assurance scheme
Represented by:
Charitable activities
Support Costs
Governance costs
Pension scheme settlements & curtailments
Total		 2024
2023
£
£
3,150,031
3,027,780
272,780
264,967
329,978
314,507
18,225
17,435
230,000
18,000
2,289,000
-
22,010
30,118
6,312,024
3,672,807
3,395,162
3,286,166
514,819
281,792
113,043
104,849
2,289,000
-
6,312,024
**3,672,807 **

During the year the Church has contributed £329,978 (2023: £314,507) into a defined contribution pension scheme. At the year end, pension contributions outstanding to the defined contribution scheme were £47,830 (2023 - £54,222).

The average number of employees during the year was 125 (2023: 126) on the payroll which includes ministers who are office-holders rather than employees of the Church.

The analysis of staff (headcount) employed was:

Mission
Seminary
Recruitment & Training
Communications, Publications & Resources
Office Support Services		 2024
2023
98
97
10
12
-
1
3
3
14
13
125
126

The following number of employees earned total employee benefits (excluding employer pension costs) within the bands shown below:

2024 2023
£60,000 - £69,999 1 -

The key management personnel of the church comprise the Chief Executive Officer, the Finance Manager, and the Trustees.

The total amount of remuneration and benefits received by Trustees and its key management personnel for their services to the charity (average number of 8 in year (2023: 7)), was £366,209 (2023: £314,876).

23

Free Church of Scotland

Notes to the Financial Statements for the year ended 31 December 2024

11. Grants and donations

Mission
Seminary
Recruitment &
Training
Disaster & Relief
Other Charitable		 Grants to
individuals
Grants to
institutions
Total 2024
Grants to
individuals
Grants to
institutions
Total 2023
£
£
£
£
£
£
987
403,692
404,679
18,911
194,951
213,862
7,025
-
7,025
3,267
-
3,267
24,267
98,591
122,858
4,068
81,043
85,111
-
20,749
20,749
-
17,500
17,500
7,099
-
7,099
1,801
-
1,801
39,378
523,032
562,410
28,047
293,494
321,541

Material grants to institutions comprised:

Grants to UK Mission Partners
Grants to Overseas Mission Partners
Grants to Free Church congregations		 2024
2023
£
£
42,249
37,500
14,314
15,152
466,469
240,842
523,032
293,494

Grants include commitments to future years.

12. Tangible fixed assets

. Tangible fixed assets
Cost or Deemed Cost
At 1 January 2024
Additions
Disposals
At 31 December 2024
Depreciation
At 1 January 2024
Charge for year

Disposals
At 31 December 2024
Net book value
Net book value at 31 December 2024
Analysed as follows:
Cost
Deemed Cost
At 31 December 2024
At 31 December 2023		 Heritable
property
£
4,239,505
421,840
(26,877)
4,634,468
-
-
-
-
4,634,468
1,641,812
2,992,656
4,634,468
4,239,505		 Motor
vehicles


£
8,000
-
8,000
8,000
-
-
8,000

-
-
-
-
-		 Fixtures &
equipment
£
359,443
6,566
-
366,009
324,483
20,745
-
345,228
20,781
20,781
-
20,781
34,960		 Total
£
4,606,948
428,406
(26,877)
5,008,477
332,483
20,745
-
353,228
4,655,249
1,662,593
2,992,656
4,655,249
4,274,465



Properties held include: (a) Properties held as part of an agreement with the College Professors under Act XIX, 1978 and Act XX1 1988, included above at original cost; (b) Churches and manses held on behalf of congregations; (c) Two properties held in South Africa in connection with a theological college; and (d) A property in Peru which was used as a headmaster’s house and which was sold in March 2025.

The Church has granted a standard security to the Free Church of Scotland Pension Scheme over the buildings held at the Mound in Edinburgh which will remain in place until the Buy-Out of the Scheme completes.

24

Free Church of Scotland

Notes to the Financial Statements for the year ended 31 December 2024

13. Investments



Quoted investments
Cash
Quoted investments
Market value at 1 January
Acquisition of investments
Disposals of investments
(Decrease)/increase in value of investments
Market Value at 31 December
Historical cost as at 31 December
14. Stock
Books and Publications
£2,099 (2023 - £3,018) of stock was recognised as an expense in the year.
15. Debtors: amounts falling due within one year
Trade debtors
Loans from Board of Trustees
Prepayments and Accrued Income
Other debtors
16. Cash and cash equivalents
Balances held in current accounts
Balances held in deposit accounts
17. Debtors: amounts falling due in more than one year
Loans from Board of Trustees
Other debtors		 2024
2023
£
£
6,180,700
5,753,174
115,572
59,357
6,296,272
5,812,531
2024
2023
£
£
5,753,174
5,441,493
892,709
1,256,055
(942,014)
(1,253,921)
476,831
309,547
6,180,700
5,753,174
5,307,653
5,280,277
2024
2023
£
£
18,890
8,689
2024
2023
£
£
112,746
164,067
177,431
177,599
51,723
202,566
131,897
123,816
473,797
668,048
2024
2023
£
£
643,664
2,029,860
6,490,385
6,957,059
7,134,049
8,986,919
2024
2023
£
£
2,341,891
2,791,324
7,872
10,200
2,349,763
2,801,524

25

Free Church of Scotland

Notes to the Financial Statements for the year ended 31 December 2024

18. Creditors: falling due within one year

HMRC – tax and national insurance
Other creditors
Grant commitments
Congregational balances held on deposit
Deferred income (below)
Accrued expenses
Deferred income

Balance at 1 January
Income deferred in the year
Amounts released in relation to previous periods
Balance at 31 December		 2024
£
69,194
215,395
196,692
533,346
141,259
60,455
1,216,341
2024

£
138,141
141,259
(138,141)
141,259		 2023
£
87,289
133,079
101,575
1,007,069
138,141
39,596
1,506,749
2023
£
120,684
138,141
(120,684)
138,141

Deferred income relates to fees for conferences and seminary courses, subscriptions for magazines and other income received which relates to 2025.

19. Creditors: falling due in more than one year

Grant commitments
Congregational balances held in the share pool
Congregational investments held elsewhere
Congregational balances held on deposit		 2024
£
80,000
828,897
7,177
3,322,421
4,238,495		 2023
£
49,950
767,771
6,559
3,609,886
4,434,166

The congregational balances are held on behalf of various congregations of the Free Church of Scotland.

20. Grant commitments included in creditors

Balance at 1 January
Commitments during year
Amounts released in relation to previous periods
Balance at 31 December		 2024
£
151,525
276,692
(151,525)
276,692		 2023
£
156,150
151,525
(156,150)
151,525

Grant commitments related to grants awarded relating to 2025 and beyond.

26

Free Church of Scotland

Notes to the Financial Statements for the year ended 31 December 2024

21. Financial assets and liabilities at fair value through net income

1. Financial assets and liabilities at fair value through net income
2024 2023
£ £
Financial assets at fair value 6,180,700 5,753,174
Financial assets at fair value comprises quoted investments.

22. Trustees' expenses and remuneration and related party transactions

Trustees are not remunerated in their capacity as Trustees, however, as authorised by Acts of Assembly, 6 (2023: 5) of the trustees are on the payroll of the Church in their capacity as Ministers and none of the trustees (2023: 0) was engaged to assist with arrangements for the General Assembly. serves as Principal of Edinburgh Theological Seminary.

Remuneration paid amounted to:

Salaries
Employers’ national insurance
Pension costs		 2024
£
196,105
19,064
19,595
234,764		 2023
£
158,010
15,081
16,674
189,765

The salary and stipend payments made to individual Trustees were:

Trustee Stipend/
salary
Pension
Costs
2024
Total
Stipend/
salary
Pension
Costs
2023
Total
£
£
£
£
£
£
27,580
2,758
30,338
26,265
2,627
28,892
55,160
5,630
60,790
52,530
5,682
58,212
30,080
2,758
32,838
-
-
-
28,125
2,892
31,017
26,685
2,960
29,645
27,580
2,799
30,379
26,265
2,778
29,043
27,580
2,758
30,338
26,265
2,627
28,892
196,105
19,595
215,700
158,010
16,674
**174,684 **

Trustees are reimbursed expenses for attending meetings and duties directly related to their duties as a Trustee. In 2024, eleven Trustees were paid total expenses of £4,082 (2023: 8 Trustees - £3,377) for travel and subsistence in connection with their trustee duties. In addition, five of the Trustees were reimbursed £16,803 (2023: 5 Trustees - £19,705) for training, travel and subsistence in relation to their non-trustee activities in the Church. There was £746 outstanding at the year-end (2023 - £176).

27

Free Church of Scotland

Notes to the Financial Statements for the year ended 31 December 2024

23. Unrestricted Funds

General Fund
Designated Funds
Assets fund
Youth work
Camps
Communications
Edinburgh building
Let property
International mission
Development
Other funds
Unrestricted funds
Pension Scheme
Total unrestricted
funds
General Fund
Designated Funds
Assets fund
Youth work
Camps
Communications
Edinburgh building
Let property
International mission
Development
Other funds
Unrestricted funds
Pensions surplus
Total unrestricted
funds		 Balance at
1 Jan 2024
Income Expenditure
Transfers
Other
recognised
gains &
losses
Balance at
31 Dec 2024
£
£
£
£
£
£
7,328,658
2,409,235
(776,456) (3,217,639)
126,229
5,870,027
4,274,465
-
-
380,784
-
4,655,249
1,700
14,445
(17,827)
3,382
-
1,700
5,341
183,682
(225,601)
41,579
-
5,001
-
20,564
(89,939)
69,375
-
-
-
42,992
(101,829)
58,837
-
-
-
135,386
(22,017)
(113,369)
-
-
200,000
-
-
-
-
200,000
106,006
-
-
-
-
106,006
-
5,868
(44,367)
38,499
- -
4,587,512
402,937
(501,580)
479,087
-
4,967,956
11,916,170
2,812,172
(1,278,036) (2,738,552)
126,229
10,837,983
-
2,502
(2,519,000)
2,475,498
41,000
-
11,916,170
2,814,674
(3,797,036)
(263,054)
167,229
10,837,983
Balance at
1 Jan 2023
Income Expenditure
Transfers
Other
recognised
gains &
losses
Balance at
31 Dec 2023
£
£
£
£
£
£
6,904,618
2,048,802
(752,900)
(944,545)
72,683
7,328,658
4,300,004
-
-
(25,539)
-
4,274,465
1,700
13,405
(19,436)
6,031
-
1,700
6,430
159,603
(197,196)
36,504
-
5,341
-
21,448
(89,531)
68,083
-
-
-
42,168
(83,600)
41,432
-
-
-
134,727
(23,978)
(110,749)
-
-
200,000
-
-
-
-
200,000
111,006
-
-
(5000)
-
106,006
-
8,926
(32,013)
23,087
- -
4,619,140
380,277
(445,754)
33,849
-
4,587,512
11,523,758
2,429,079
(1,198,654)
(910,696)
72,683
11,916,170
170,872
-
(18,000)
539,881
(692,753)
-
11,694,630
2,429,079
(1,216,654)
(370,815)
(620,070)
11,916,170

28

Free Church of Scotland

Notes to the Financial Statements for the year ended 31 December 2024

23. Unrestricted Funds (continued)

Explanation of funds Designated funds

The assets fund was set up to hold the net book value of the fixed assets (property and equipment) and intangible fixed assets of the Church.

The pensions surplus / deficit fund holds the balance of the surplus / deficit and any movement in it.

The youth work fund provides funding support for the youth work of the Church. It encompasses the income and expenditure associated with production of Sunday School materials.

The camps fund incorporates the income and expenditure associated with the Church's programme of youth camps.

The communications fund incorporates the income and expenditure associated with The Record magazine and the Church's website and provides funding for the Church's Communication Officer.

The bookshop fund represents the trading activity and operating costs of the Church's Bookshop.

The Edinburgh building fund provides for the upkeep of the Mound and Assembly Hall buildings in Edinburgh.

The let property fund incorporates the income and expenditure associated with the Church's portfolio of flats in Edinburgh and some other centrally held properties.

The international mission fund has been established to hold the reserve which is required under the reserves policy of the Board of Trustees.

The development fund has been set up to provide time-limited funding for growth & development projects.

Other funds include inter alia funds for ecumenical relations, assembly arrangements and psalmody.

24. Restricted funds

. Restricted funds
Mission Funds
Training of the ministry
ETS
Disaster & relief
Sundry funds
Total restricted funds		 Balance at
1 Jan 2024
Income
Expenditure
Transfers
Other
recognised
gains &
losses
Balance at
31 Dec 2024
£
£
£
£
£
£
932,640
3,229,021
(3,377,565)
81,426
14,591
880,113
(26,208)
97,636
(164,813)
63,974
3,148
(26,263)
533,155
305,257
(650,037)
352,287
35,318
575,980
22,734
10,283
(20,852)
-
-
12,165
303,347
4,155
(7,144)
(76,118)
21,567
245,807
1,765,668
3,646,352
(4,220,411)
421,569
74,624
**1,687,802 **

29

Free Church of Scotland

Notes to the Financial Statements for the year ended 31 December 2024

24. Restricted funds (continued)

Mission Funds
Training of the Ministry
ETS
Disaster & Relief
Sundry Funds
Total restricted funds		 Balance at
1 Jan 2023
Income
Expenditure
Transfers
Other
recognised
gains &
losses
Balance at
31 Dec 2023
£
£
£
£
£
£
719,894 3,226,801
(3,013,781)
-
(274)
932,640
1,399
75,033
(134,160)
29,505
2,015
(26,208)
478,481
294,448
(618,310)
355,935
22,601
533,155
12,246
28,191
(17,703)
-
-
22,734
287,215
3,859
(1,846)
318
13,801
303,347
1,499,235 3,628,332
(3,785,800)
385,758
38,143
1,765,668

Explanation of funds – Restricted Funds

Mission Funds - provides funding for congregational ministry and mission activity both at home and overseas. Training of the Ministry Fund - provides funding for candidates training for the Free Church ministry. ETS Fund - represents the income and expenditure associated with running Edinburgh Theological Seminary, together with funds from donations and legacies for seminary support.

Disaster & Relief Fund - provides assistance in response to natural disasters or where there is widespread human suffering.

Sundry Funds - are various small funds which have been set up by the church over many decades.

25. Endowment funds

. Endowment funds
Expendable
College
Permanent
College general
Sustentation
Home missions
Rural areas
Retired ministers and
professors
Foreign missions
Jewish mission
Church extension
Church and manse
building fund
Other funds
Training of ministry		 Balance at
1 Jan 2024
Income
Expenditure
Transfers
Other
recognised
gains & losses
£
£
£
£
£
411,210
16,442
(57,680)
-
21,366		 Balance at
31 Dec
2024
£
391,338
424,196
-
-
-
1,184,161
-
-
-
38,643
-
-
-
104,264
-
-
-
158,515
-
- (158,515)
426,000
-
-
-
27,498
-
-
-
49,356
-
-
-
27,868
-
-
-
65,612
-
-
-
12,100
-
-
-		 35,301
98,540
3,215
8,677
-
35,448
2,289
4,107
2,319
5,460
1,007		 459,497
1,282,701
41,858
112,941
-
461,448
29,787
53,463
30,187
71,072
13,107
2,518,213
-
-(158,515)		 196,363 2,556,061

The Retired ministers and professors endowment fund existed to help provide income to retired ministers and professors of the Free Church and so the income has previously been paid into the Free Church Pension Scheme as part of the regular contributions. To ensure that this continues the total value of this fund has been transferred to Just Retirement Limited as part of the Buy-In transaction.

30

Free Church of Scotland

Notes to the Financial Statements for the year ended 31 December 2024

25. Endowment funds (continued)

Expendable
College
Permanent
College general
Sustentation
Home missions
Rural areas
Retired ministers and
professors
Foreign missions
Jewish mission
Church extension
Church and manse
building fund
Other funds
Training of ministry		 Balance at
1 Jan 2023
Income
Expenditure
Transfers
Other
recognised
gains & losses
Balance at
31 Dec
2023
£
£
£
£
£
£
273,770 184,621
(45,911)
(14,943)
13,673
411,210
401,607
-
-
-
22,589
424,196
1,121,102
-
-
-
63,059
1,184,161
36,585
-
-
-
2,058
38,643
98,712
-
-
-
5,552
104,264
150,074
-
-
-
8,441
158,515
403,314
-
-
-
22,686
426,000
26,034
-
-
-
1,464
27,498
46,728
-
-
-
2,628
49,356
26,384
-
-
-
1,484
27,868
62,118
-
-
-
3,494
65,612
11,456
-
-
-
644
12,100
2,384,114
-
-
-
134,099
2,518,213

Explanation of funds

Most, if not all, of the permanent endowment funds follow the fund descriptions of unrestricted funds and restricted funds. The primary purpose of the funds that remain in permanent endowments is to provide an income stream to those unrestricted and restricted funds for the objects that have been set out.

Expendable endowment fund

The expendable endowment funds are funds given towards the Free Church College (now known as ETS). Generally, the income will be allocated to the college fund or may be capitalised to the endowment fund. In certain situations, as the need arises, the College Board may spend some of the capital of the endowment fund.

31

Free Church of Scotland

Notes to the Financial Statements for the year ended 31 December 2024

26. Funds held in share pool

A summary of the funds held in the share pool during the year together with the value at the beginning and end of the year is shown in the table below:

Unrestricted Funds
General Fund
Restricted Funds
Jewish Mission
Training of the ministry
ETS
Sundry Funds
Endowment funds
College Endowment Fund
College
Sustentation
Home Missions
Rural Areas
Retired Ministers & Profs
Foreign Missions General
Jewish Mission
Church Extension
Church & Manse Bldg Fund
Perm Endow - Other
Training
Congregational Investments		 At 1st January 2024
Additions and
Withdrawals
At 31st December 2024
Units
Market
Value
Units
Value
Units
Market
Value
£
£
£
253,387
1,366,092
29,891
161,155
283,278
1,654,226
34,585
186,458
-
-
34,585
201,962
25,865
139,450
-
-
25,865
151,044
78,792
424,793
-
-
78,792
460,112
29,272
157,812
-
-
29,272
170,932
168,514
908,513
-
-
168,514
984,050
47,666
256,984
-
-
47,666
278,350
78,750
424,568
-
-
78,750
459,867
219,834
1,185,196
-
-
219,834
1,283,737
7,174
38,676
-
-
7,174
41,892
19,356
104,356
-
-
19,356
113,032
29,427
158,653
(29,427) (158,653)
-
-
77,889
419,926
-
-
77,889
454,840
5,105
27,523
-
-
5,105
29,811
9,163
49,399
-
-
9,163
53,506
5,173
27,891
-
-
5,173
30,211
13,376
72,114
-
-
13,376
78,110
2,245
12,106
-
-
2,245
13,112
467,492
2,520,408
(29,427)
(158,653)
438,065
2,558,118
142,408
767,771
(464)
(2,502)
141,944
828,897
1,079,467
5,819,768
-
-
1,079,467
6,303,641

32

Free Church of Scotland

Notes to the Financial Statements for the year ended 31 December 2024

26. Funds held in share pool (continued)

Unrestricted Funds
General Fund
Restricted Funds
Jewish Mission
Training of the ministry
ETS
Sundry Funds
Endowment funds
College Endowment Fund
College
Sustentation
Home Missions
Rural Areas
Retired Ministers & Profs
Foreign Missions General
Jewish Mission
Church Extension
Church & Manse Bldg Fund
Perm Endow – Other
Training
Congregational Investments		 At 1st January 2023
Additions and
Withdrawals
At 31st December 2023
Units
Market
Value
Units
Value
Units
Market
Value
£
£
£
245,415 1,252,717
7,972
40,691
253,387
1,366,092
34,585
176,538
-
-
34,585
186,458
25,865
132,030
-
-
25,865
139,450
78,792
402,192
-
-
78,792
424,793
29,272
149,415
-
-
29,272
157,812
168,514
860,175
-
-
168,514
908,513
47,666
243,311
-
-
47,666
256,984
78,750
401,979
-
-
78,750
424,568
219,834 1,122,138
-
-
219,834
1,185,196
7,174
36,618
-
-
7,174
38,676
19,356
98,803
-
-
19,356
104,356
29,427
150,212
-
-
29,427
158,653
77,889
397,583
-
-
77,889
419,926
5,105
26,058
-
-
5,105
27,523
9,163
46,771
-
-
9,163
49,399
5,173
26,408
-
-
5,173
27,891
13,376
68,277
-
-
13,376
72,114
2,245
11,462
-
-
2,245
12,106
467,492 2,386,309
-
-
467,492
2,520,408
150,380
767,613
(7,972)
(40,691)
142,408
767,771
1,079,467 5,510,125 -
-
1,079,467
5,819,768

27. Free Church of Scotland pension scheme

The Free Church of Scotland (the Church) operates a defined benefit pension arrangement called the Free Church of Scotland Pension Scheme (the Scheme). The Scheme, which was closed to new members and to future accrual of benefits for existing members on 31 December 2007, provides benefits based on final salary and length of service on retirement, leaving service or death. The following disclosures exclude any allowance for defined contribution schemes operated by the Church.

The Scheme is subject to the Statutory Funding Objective under the Pensions Act 2004. A valuation of the Scheme is carried out at least once every three years to determine whether the Statutory Funding Objective is met. As part of the process the Church must agree with the Trustees of the Scheme the contributions to be paid to address any shortfall against the Statutory Funding Objective. The most recent comprehensive actuarial valuation of the Scheme was carried out as at 31 December 2021.

33

Free Church of Scotland

Notes to the Financial Statements for the year ended 31 December 2024

27. Free Church of Scotland pension scheme(continued)

At the year end the Actuary reported a funding surplus in the pension scheme on an accounting basis of £16,000 however an asset ceiling has been applied to show a nil value in the accounts in accordance with FRS102. On 4 December 2024 the Scheme completed a Buy-In transaction with Just Retirement Limited covering all of the Scheme’s pension obligations.

Explanation of amounts in the financial statements

Amounts recognised in the balance sheet at 31 Value at 31 Value at 31
December December 2024 December 2023
£ £
Fair value of assets 6,659,000 7,624,000
Present value of funded obligations (6,643,000) (7,267,000)
Surplus 16,000 357,000
Effect of asset ceiling (16,000) (357,000)
Net defined benefit asset at 31 December - -
Amount recognised in the statement of financial 31 December 2024 31 December 2023
activities over the year
£ £
Administration costs 288,000 38,000
Interest on liabilities 320,000 335,000
Interest on assets (378,000) (355,000)
Net administration costs 230,000 18,000
Settlement and curtailment cost 2,289,000 -
Total 2,519,000 18,000
Reconciliation of Assets and Defined Benefit Obligation
The change in the assets over the period was:
31 December 2024 31 December 2023
£ £
Fair value of assets at the beginning of the period 7,624,000 7,258,000
Interest on assets 378,000 355,000
Church contributions 2,478,000 540,000
Benefits paid (566,000) (515,000)
Administration costs (288,000) (38,000)
Change due to settlements and curtailments (2,289,000) -
Return on plan assets less interest (678,000) 24,000
Fair value of assets at the end of the period 6,659,000 7,624,000
The change in the defined benefit obligation over the period was:
31 December 2024 31 December 2023
£ £
Defined Benefit Obligation at the beginning of the 7,267,000 7,087,000
Interest costs 320,000 335,000
Benefits paid (566,000) (515,000)
Experience loss / (gain) on defined benefit obligation 195,000 195,000
Changes to demographic assumptions (16,000) (68,000)
Changes to financial assumptions (557,000) 233,000
Defined benefit obligation at the end of the period 6,643,000 7,267,000

34

Free Church of Scotland

Notes to the Financial Statements for the year ended 31 December 2024

27. Free Church of Scotland pension scheme(continued)

Assets

The major categories of assets as a percentage of total assets are as follows:

Asset Category 31 December 2024 31 December 2023
UK equities - 5.5%
Overseas equities - 14.7%
Property - 1.9%
Gilts - 39.0%
Bonds - 0.0%
Fixed Interest - 22.8%
Other - 5.1%
Cash - 11.0%
Just Retirement Ltd Buy-In policy 100%
Total 100% 100%

The sole asset of the Scheme is now the Just Retirement Limited insurance policy. The previous assets have not included any investment in the Church or related properties.

Actuarial assumptions

The principal assumptions used to calculate the Scheme’s liabilities include:

31 December 2024 31 December 2023
Discount rate 5.35% 4.55%
Inflation assumption (RPI) 3.50% 3.35%
Inflation assumption (CPI) 2.95% 2.90%
CPI pension increases capped at 5% 2.90% 2.85%
Revaluation in deferment
Post retirement mortality assumption 97% of S3PMA_H for 97% of S3PMA_H for
males and 108% of S3PFA males and 108% of S3PFA
for females with CMI for females with CMI
2023 projections using a 2022 projections using a
long-term improvement long-term improvement
rate of 1.25% pa, an initial rate of 1.25% pa, an
addition parameter of 0% initial addition parameter
pa and core 2023 weight of 0% pa and core 2022
parameters (0%, 0%, 15%, weight parameters (0%,
15%) 0%, 25%)
Tax free cash Members are assumed to Members are assumed to
commute 10% of pension commute 10% of pension
at retirement at retirement

Under the adopted mortality tables, the future life expectancy at age 65 is as follows:

Life expectancy at age 65 31 December 2024 31 December 2023
Male currently aged 45 20.8 20.8
Male currently aged 65 19.5 19.5
Female currently aged 45 24.8 24.8
Female currently aged 65 23.4 23.4

35

Free Church of Scotland

Notes to the Financial Statements for the year ended 31 December 2024

28. Analysis of net assets by fund

Fund balances at 31[st] December 2024 are represented by:

Fixed assets
Tangible fixed assets
Investments
Current assets
Stock
Debtors
Bank & cash
Debtors
Amounts falling due after
one year
Creditors
Amounts falling due within
one year
Creditors
Amounts falling due after
one year
Pension scheme surplus		 Unrestricted
funds
Restricted
funds
Expendable
endowment
funds
Permanent
endowment
funds
Total
funds
2023
£
£
£
£
£
4,655,249
-
-
-
4,655,249
2,475,754
984,050
278,350
2,558,118
6,296,272
18,890
-
-
-
18,890
392,462
81,335
-
-
473,797
5,874,109
1,149,009
112,988
(2,057)
7,134,049
2,349,763
-
-
-
2,349,763
(769,749)
(446,592)
-
-
(1,216,341)
(4,158,495)
(80,000)
-
-
(4,238,495)
-
-
-
-
-
10,837,983
1,687,802
391,338
2,556,061
15,473,184

36

Free Church of Scotland

Notes to the Financial Statements for the year ended 31 December 2024

28. Analysis of net assets by fund (continued)

Fund balances at 31[st] December 2023 are represented by:

Fixed assets
Tangible fixed assets
Investments
Current assets
Stock
Debtors
Bank & cash
Debtors
Amounts falling due after
one year
Creditors
Amounts falling due within
one year
Creditors
Amounts falling due after
one year
Pension scheme deficit		 Unrestricted
funds
Restricted
funds
Expendable
endowment
funds
Permanent
endowment
funds
£
£
£
£
4,274,465
-
-
-
2,168,803
898,117
254,043
2,491,568
8,689
-
-
-
471,486
196,562
-
-
7,844,642
958,465
157,167
26,645
2,801,524
-
-
-
(1,269,223)
(237,526)
-
-
(4,384,216)
(49,950)
-
-
-
-
-
-		 Total
funds
2023
£
4,274,465
5,812,531
8,689
668,048
8,986,919
2,801,524
(1,506,749)
(4,434,166)
-
11,916,170
1,765,668
411,210
2,518,213		 16,611,261

37

Free Church of Scotland

Notes to the Financial Statements for the year ended 31 December 2024

29. Transfers

Fund
General fund
Development fund
Asset fund
Pension Deficit Fund
Communications
Let property
Other
Mission Board
Training of Ministry
Seminary
Other
College Expendable
Endowment
Endowment Fund
Retired Ministers &
Profs
TOTAL		 Unrestricted
Restricted
Expendable
Endowment
Endowment
Total
2024
£
£
£
£
£
(3,217,639)
-
-
-
(3,217,639)
-
-
-
-
380,784
-
-
-
380,784
2,475,498
-
-
-
2,475,498
69,375
-
-
-
69,375
(113,369)
-
-
-
(113,369)
142,297
-
-
-
142,297
-
-
81,426
-
81,426
-
63,974
-
-
63,974
-
352,287
-
-
352,287
-
(76,118)
-
-
(76,118)
-
-
-
-
-
-
-
-
(158,515)
(158,515)
(263,054)
421,569
-
(158,515)
-

Transfers are made to clear deficit balances on individual funds at year end and to ensure that unspent funds are retained for the purposes for which they have been designated or restricted.

Fund
General fund
Development fund
Asset fund
Pension Deficit Fund
Communications
Let property
Other
Mission Board
Training of Ministry
Seminary
Other
College Expendable
Endowment
TOTAL		 Unrestricted
Restricted
Expendable
Endowment
Total
2023
£
£
£
£
(944,545)
-
-
(944,545)
(5,000)
-
-
(5,000)
(25,539)
-
-
(25,539)
539,881
-
-
539,881
68,083
-
-
68,083
(110,749)
-
-
(110,749)
107,054
-
-
107,054
-
-
-
-
-
29,505
-
29,505
-
355,935
-
355,935
-
318
-
318
-
-
(14,943)
(14,943)
(370,815)
385,758
(14,943)
-

38

Free Church of Scotland

Notes to the Financial Statements for the year ended 31 December 2024

30. Funds held for congregations

The Church holds funds on behalf of congregations, both as cash and within the investment share pool. The reasons for holding the funds include:

The movements in funds held are detailed below:

Funds held as cash

Balance at 1 January
Additions
Withdrawals
Transfers from investments
Balance at 31 December
Funds held as share pool investments
Balance at 1 January
Transfers (to) cash
Additional investment
Revaluation of investments
Balance at 31 December
Funds held as other investments
Balance at 1 January
Revaluation of investments
Balance at 31 December
Total funds held		 2024
2023
£
£
4,616,955
4,603,031
250,394
134,280
(1,011,582)
(120,356)
-
-
3,855,767
4,616,955
2024
2023
£
£
767,771
767,613
(2,502)
(40,692)
-
-
63,628
40,850
828,897
767,771
2024
2023
£
£
6,559
6,075
618
484
7,177
6,559
4,691,841
5,391,285

31. Gifts for other charities

During the year various congregations and individuals sent gifts to the church to be passed on to other charities. These gifts are accounted for through what is termed a post box account and do not form part of our incoming or outgoing resources. The monies paid in and out are detailed below.

2024 2023
£ £
Gifts 2,920 2,247
The balance held at 31 December 2024 was £500 (2023 - £45).

39

Free Church of Scotland

Notes to the Financial Statements for the year ended 31 December 2024

32. Reconciliation of net income/(expenditure) to net cash flow from operating activities

Net expenditure for the reporting period
Adjustments for:
Depreciation charges
Current service costs – pension
Payments to pension scheme
Gains on investments
Losses on foreign exchange
Dividends and interest from investments
Interest paid
Gain on the sale of fixed assets
Increase in investments
(Increase)/Decrease in stocks
Decrease/(Increase) in debtors
(Decrease)/Increase in creditors
Net cash used in operating activities*		 2024
2023
£
£
(1,178,165)
1,462,460
20,745
25,539
288,000
38,000
(191,502)
(539,882)
(419,494)
(268,793)
(912)
(10,195)
(617,497)
(534,832)
176,179
162,146
(439,739)
-
-
-
(10,201)
3,018
646,012
(766,337)
(486,079)
162,583
(2,212,653)
(266,293)

*These are regular payments made to the Pension Scheme over the course of the year and exclude the purchase of the Buy-In policy on 4 December 2024. The cost of the Buy-In policy is included in the Statement of Financial Activities and so already included in the “Net expenditure for the reporting period” figure.

40