Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 


Trustees’ Report and Financial Statements 

_Year Ended 31 December 2025_ 

Scottish Charity Registration No:  SC012925 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

**Contents of the Financial Statements** _for the year ended 31 December 2025_ 

||Page|
|---|---|
|Report of the Trustees|1 - 7|
|Report of the Auditor|8 - 10|
|Statement of Financial Activities|11|
|Balance Sheet|12|
|Statement of Cash Flows|13|
|Notes to the Financial Statements|14-39|





Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Report of the Trustees** _for the year ended 31 December 2025_ 

## **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: 

Mr D C Forsyth, _Chairman_ Rev N M MacMillan, _Vice-Chairman_ Dr C L Crichton Mr A R Crooks Mr N M Graham Rev R C Gray Rev A M MacAulay Mr D F G Macleod – appointed 19 May 2025 Rev M M M Martin Mr C M McPhail – appointed 11 September 2025 Mr M F Robinson Rev B T J Wilks Mr H D Morrison – resigned 19 June 2025 Mr I G Macleod – resigned 19 May 2025 

**Chief Executive Officer:** Mr A R Giffen **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:** CT Audit Limited, 61 Dublin Street, Edinburgh, EH3 6NL **Investment Managers:** RBC Brewin Dolphin, Sixth Floor, Atria One, 144 Morrison Street, Edinburgh, EH3 8BR 

1 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Report of the Trustees** _for the year ended 31 December 2025_ 

The Trustees are pleased to present their annual report and financial statements of the charity for the year ended 31[st] December 2025. 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: 

- Establishing new congregations and assisting in the redevelopment of others[(a)] 

- Supporting mission work in a number of countries[(a)] 

- Running a programme of short-term residential holidays for young people[(a)] 

- Running a degree awarding seminary for theological students[(b)] 

- Providing information on the Church to members and others through various communication channels[(d)] 

- Addressing questions of morality, religion and doctrine[(a, d)] 

- Supporting a variety of social responsibility projects both within the Church and through external agencies (a, e) 

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: 

||**2025**|**2024**|
|---|---|---|
|**Activity**|**£**|**£**|
|Mission|4,639,530|4,341,305|
|Seminary|836,099|810,174|
|Recruitment and Training|154,387|186,346|
|Communications, Publications & Resources|127,206|115,969|
|Disaster & Relief|2,351|23,577|
|Other Charitable Activity|70,787|286,776|
|Mission - Exceptional|517,410|-|
||**6,347,770**|**5,764,147**|



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 and 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 grants to local congregations for church planting, church development, the training of ministers and other workers, and to help with property purchases. The Church also makes some grants to individuals and mission 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 

2 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Report of the Trustees** _for the year ended 31 December 2025_ 

participating in boards and committees, volunteers contribute enormously to the running of the Church’s youth camps, conferences and the work of the Seminary. 

## **Achievements and Performance** 

The Free Church of Scotland denomination is made up of around 115 congregations and 12,000 people. The Church is served by over 800 volunteer Elders and Deacons in addition to the 100 or so Ministers and the staff employed centrally and by local congregations. 

Despite the challenging economic situation, the majority of congregations managed to increase their central remittance levels. Remittances from congregations increased by 18% for 2025 (2024: increase of 6.4%). The income received helped support congregational ministry, the running of the Seminary and the various mission activities of the Free Church. 

There were 352 students enrolled in the Seminary for courses in academic year 2025/26 (2024/25: 323). 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 12 camps in July 2025. In total 336 campers attended, with 103 leaders and 29 cooks volunteering. 

During 2025, 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 11 to 39.  The Statement of Financial Activities on page 11, shows a positive net movement in funds of £1,869,647 (2024: negative net movement in funds £1,138,077). This was predominantly due to two large legacies and a large donation received during the year. 

Total income for the year was £7,787,514 (2024:£ 6,477,468). This includes the legacy income, donations and gain on the sale of property. The decrease in expenditure was due to elevated costs in the prior year from the buy-in of the pension scheme. 

There was an actuarial gain of £14,000 on the defined benefit pension scheme during the year (2024: gain of £41,000). There was a gain in the value of investments of £443,273, compared with a gain of £419,494 in 2024. Various world events meant that there was continuing volatility in the investment markets during the year. 

Before the effect of movements in the market value of investments and pension scheme payments, there was a net income of £1,412,869 (2024: £691,341) £249,307 of which was the gain on the sale of a property (2024: £439,739). 

3 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Report of the Trustees** _for the year ended 31 December 2025_ 

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. 

## _**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.  The current free reserves are £5,053,113, made up of General Fund (£4,853,113) and International Mission (£200,000) 

At 31 December 2025, the General Fund amounted to £7,324,452 (2024: £5,870,027), the International Mission Fund was £200,000 (2024: £200,000), the Development Fund was £500,000 (2024: £106,006), and the designated Assets Fund was £4,610,769 (2024: £4,655,249). 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. Endowment Funds of £3,118,003 (2024: £2,947,399) and Restricted Income Funds of £1,584,263 (2024: £1,687,802) were also held. The total reserves, including the net book value of fixed assets and the balances on restricted funds, amounted to £17,342,830 (2024: £15,473,184). 

## _**Investment Policies & Portfolio Performance**_ 

Various Acts of the General Assembly govern the funds and endowments held by the Church in the pooled investment portfolio. 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 in order to limit involvement in weapons, tobacco, gambling and pornography. The investment managers report regularly on performance and on ESG considerations, and normally meet at least two times per year with the Church’s Investment Committee. 

The market value of the investment portfolio on 31 December 2025 was £6,793,571 (2024: £6,296,272). This represented an increase of 7.9% year on year. The investments generated income of £119,763 in the period (2024: £151,780). 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 £4,526,800 (2024: £4,691,841) 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 28. 

## _**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 2025 (2024: £nil). During 2025, the Church paid £56,000 (2024: £549,153) into the Scheme to cover expenses including progressing the Buy-out with 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. 

4 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Report of the Trustees** _for the year ended 31 December 2025_ 

## _**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**_ 

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: 

- Compliance and Governance e.g. legislative breaches, reputational risks, safeguarding, data protection 

- Oversight e.g. management and planning, internal processes, and communications. 

- Charity Trustee e.g. availability and expertise of volunteer trustees, OSCR 

- Financial Sustainability e.g. stewardship, fluctuation in income, financial mismanagement 

- People e.g. key worker shortages, supporting and developing ministers and staff 

- Operations e.g. day to day activities of the Church 

- Strategy Development e.g. incoherent plans, missed opportunities, recruitment and vacancies. 

Current plans and strategies to manage principal risks and uncertainties include: monitoring of applicable regulations and updating guidance materials for congregations; engagement with other denominations involved in policy matters; robust budgeting and cashflow; regular financial reporting; IT management company and backups of critical information; continuous professional development for ministers and training for staff; careful recruitment; use of professional advisers; monitoring of communications; sharing the vision and developing new initiatives.  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 1 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, 

5 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Report of the Trustees** _for the year ended 31 December 2025_ 

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. 

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. 

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. 

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 Property 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. 

6 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Report of the Trustees** _for the year ended 31 December 2025_ 

## **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: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgements and accounting estimates that are reasonable and prudent; 

- state whether applicable accounting standards have been followed, subject to any material departures that must be disclosed and explained in the financial statements; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Church will continue in business. 

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: 

   - so far as each Trustee is aware, there is no relevant information of which the Church's auditor is unaware, and 

   - each Trustee has taken all the steps that he ought to have taken as a Trustee in order to make himself aware of any relevant audit information, and to establish that the Church's auditor is aware of the information. 

## **On behalf of the Trustees** 


Donald Forsyth 

Trustee 

`04 May 2026` Dated:   ____________________ 

7 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

**Report of the Independent Auditor to the Trustees** _for the year ended 31 December 2025_ 

## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF FREE CHURCH OF SCOTLAND FOR THE YEAR ENDED 31 DECEMBER 2025** 

## **Opinion on accounts** 

We have audited the accounts of the Free Church of Scotland for the year ended 31 December 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes.  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 the accounts: 

- give a true and fair view of the state of the charity’s affairs as at 31 December 2025, 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 requirements of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended). 

## **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 accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, 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 opinion. 

## **Conclusions relating to going concern** 

In auditing the accounts, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the accounts 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 accounts 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 trustees are responsible for the other information. The other information comprises the information included in the Report of the Trustees, other than the accounts and our auditor’s report thereon.  Our opinion on the accounts does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in 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 there is a material misstatement in the accounts or a material misstatement of the other information. 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. 

8 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Report of the Independent Auditor to the Trustees** _for the year ended 31 December 2025_ 

## **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 require us to report to you if, in our opinion: 

- the information given in the accounts is inconsistent in any material respect with the trustees’ report; or 

- proper accounting records have not been kept; or 

- the accounts are not in agreement with the accounting records; or 

- we have not received all the information and explanations we require for our audit. 

## **Responsibilities of trustees** 

As explained more fully in the Board of Trustees’ Responsibilities Statement set out on page 7, the trustees are responsible for the preparation of accounts which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error. 

In preparing the accounts, 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 accounts** 

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 regulations made under that Act. 

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. 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 

We gained an understanding of the legal and regulatory framework applicable to the charity and the sector in which it operates and considered the risk of acts by the charity which were contrary to applicable laws and regulations, including fraud. These included but were not limited to the Charities and Trustee Investment (Scotland) Act 2005, and Health and Safety Regulations. 

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that 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, misrepresentations or through collusion. 

9 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Report of the Independent Auditor to the Trustees** _for the year ended 31 December 2025_ 

## **Auditor’s responsibilities for the audit of the accounts (continued)** 

We focused on laws and regulations that could give rise to a material misstatement in the charity’s financial statements. Our tests included, but were not limited to: 

- agreement of the financial statement disclosures to underlying supporting documentation; 

- enquiries of senior management and the Trustees; 

- review of minutes of board meetings throughout the period, and 

- obtaining an understanding of the control environment in monitoring compliance with laws and regulations. 

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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation. 

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

## **Use of our report** 

This report is made solely to the charity’s trustees, as a body, in accordance with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and 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 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. 


CT Audit Limited Chartered Accountants and Statutory Auditor 61 Dublin Street Edinburgh  EH3 6NL 

## `05 May 2026` 

________________________ 

CT Audit Limited is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 

10 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Statement of Financial Activities incorporating the Income and Expenditure Accounts** _for the year ended 31 December 2025_ 

|**Notes**<br>**Income and endowments**<br>**from:**<br>Congregational Remittances<br>Donations<br>Legacies<br>**4**<br>Charitable activities<br>**5**<br>Investments<br>**6**<br>Gain on disposal of fixed<br>assets<br>**Total**<br>**Expenditure on:**<br>Raising funds – investment<br>management fees<br>Charitable activities<br>**7**<br>Pension Scheme<br>**26**<br>**Total**<br>Net gains on investments<br>**Net income/(expenditure)**<br>**Transfers between funds**<br>**22,**<br>**23,24**<br>Actuarial gain/(loss) on<br>defined benefit pension<br>scheme<br>Other losses<br>**Net movement in funds**<br>**Reconciliation of funds:**<br>Total funds brought forward<br>**Total funds carried**<br>**forward**<br>**Note**|**Unrestricted**<br>**Funds**<br>**Restricted**<br>**Funds**<br>**£**<br>**£**<br>1,763,554<br>3,666,380<br>496,859<br>60,739<br>9,099<br>305,924<br>464,841<br>285,603<br>362,318<br>77,401<br>249,307<br>-|**Expendable**<br>**Endowment**<br>**Funds**<br>**Endowment**<br>**Funds**<br>**2025**<br>**2024**<br>**£**<br>**£**<br>**£**<br>-<br>-<br>5,429,934<br>4,601,294<br>21,791<br>-<br>579,389<br>141,679<br>6,000<br>-<br>321,023<br>8,411<br>-<br>-<br>750,444<br>668,848<br>17,698<br>-<br>457,417<br>617,497<br>-<br>-<br>249,307<br>439,739|
|---|---|---|
||**3,345,978**<br>**4,396,047**|**45,489**<br>**-**<br>**7,787,514**<br>**6,477,468**|
||26,876<br>-<br>1,860,806<br>4,386,548<br>-<br>-|-<br>-<br>26,876<br>21,980<br>100,416<br>-<br>6,347,770<br>5,764,147<br>-<br>-<br>-<br>2,289,000|
||**1,887,682**<br>**4,386,548**|**100,416**<br>**-**<br>**6,374,646**<br>**8,075,127**|
||139,499<br>78,243|22,132<br>203,399<br>443,273<br>419,494|
||**1,597,795**<br>**87,742**|**(32,795)**<br>**203,399**<br>**1,856,141**<br>**(1,178,165)**|
||190,787<br>(190,787)<br>14,000<br>-<br>-<br>(494)|-<br>-<br>-<br>-<br>-<br>-<br>14,000<br>41,000<br>-<br> -<br>(494)<br>(912)|
||**1,802,582**<br>**(103,539)**<br>10,837,982<br>1,687,802|**(32,795)**<br>**203,399**<br>**1,869,647**<br>**(1,138,077)**<br>391,338<br>2,556,061<br>15,473,183<br>16,611,261|
||**12,640,564**<br>**1,584,263**|**358,543**<br>**2,759,460**<br>**17,342,830**<br>**15,473,184**|
||**22**<br>**23**|**24**<br>**24**|



All results relate to continuing activities. The notes on pages 14 to 39 form part of these financial statements. 

11 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Balance Sheet** _for the year ended 31 December 2025_ 

|**Notes**<br>**Fixed assets**<br>Tangible assets<br>**12**<br>Investments<br>**13**<br>_Total fixed assets_<br>**Current assets**<br>Stocks<br>Debtors<br>**14**<br>Cash at bank and in hand<br>**15**<br>_Total current assets_<br>Debtors - amounts falling due in more than one year<br>**16**<br>**Liabilities**<br>Creditors - amounts falling due within one year<br>**17**<br>_Net current assets_<br>_Total assets less current liabilities_<br>Creditors - Amounts falling due in more than one year<br>**18**<br>_Net Assets excluding pension scheme deficit_<br>Defined benefit pension scheme asset<br>**26**<br>**_Total net assets_**<br>**The funds of the charity:**<br>Endowment funds<br>**24**<br>Expendable endowment fund<br>**24**<br>Restricted income funds<br>**23**<br>Unrestricted funds<br>**22**<br>**Total charity funds**|**2025**<br>**2024**<br>**£**<br>**£**<br>4,610,769<br>4,655,249<br>6,793,571<br>6,296,272|
|---|---|
||**11,404,340**<br>**10,951,521**|
||13,400<br>18,890<br>1,090,010<br>473,797<br>7,237,959<br>7,134,049|
||**8,341,369**<br>**7,626,736**|
||2,670,032<br>2,349,763<br>1,133,959<br>1,216,341|
||7,207,410<br>6,410,395|
|||
||**21,281,782**<br>**19,711,679**|
||3,938,952<br>4,238,495|
||**17,342,830**<br>**15,473,184**|
||-<br>-|
||**17,342,830**<br>**15,473,184 **|
||2,759,460<br>2,556,061<br>358,543<br>391,338<br>1,584,263<br>1,687,802<br>12,640,564<br>10,837,983|
||**17,342,830**<br>**15,473,184**|



The financial statements were approved by the Trustees on 4 May 2026 and signed on their behalf by the undernoted: 


Donald Forsyth Trustee Charity Number SC012925 

The notes on pages 14 to 39 form part of these financial statements. 

12 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Statement of Cash Flows** _for the year ended 31 December 2025_ 

|**Cash flows from operating activities:**<br>**Note**<br>**_Net cash used in operating activities_**<br>**29**<br>**Cash flows from investing activities:**<br>Dividends and interest from investments<br>Interest paid to congregations<br>Proceeds from sale of property, plant and equipment<br>Purchase of property, plant and equipment<br>(Increase)/decrease in value of congregational investments<br>**_Net cash provided by investing activities_**<br>**Cash flows from financing activities:**<br>Finance costs relating to Pension Scheme<br>**_Net cash used in financing activities_**<br>**Cash and cash equivalents at the beginning of the reporting period**<br>**Change in cash and cash equivalents in the reporting period**<br>**Cash and cash equivalents at the end of the reporting period**<br>**15**|**2025**<br>**2024**<br>**£**<br>**£**<br>**(214,000)  (2,212,653)**<br>457,417<br>617,497<br>(152,412)<br>(176,179)<br>-<br>466,615<br>(348)<br>(428,406)<br>14,253<br>(61,744)|
|---|---|
||318,910<br>417,783|
||(1,000)<br>(58,000)|
||(1,000)<br>(58,000)|
||7,134,049<br>8,986,919<br>103,910<br>(1,852,870)|
||**7,237,959**<br>**7,134,049**|



## **Analysis of changes in net debt** 

|Cash in hand|As at 1<br>January<br>2025<br>Cash flow<br>As at 31<br>December<br>2025<br>£<br>£<br>£<br>7,134,049<br>103,910<br>7,237,959|
|---|---|
||7,134,049<br>103,910<br>7,237,959|



The notes on pages 14 to 39 form part of these financial statements. 

13 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Notes to the Financial Statements** _for the year ended 31 December 2025_ 

## **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. 

14 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Notes to the Financial Statements** _for the year ended 31 December 2025_ 

## **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. 

15 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Notes to the Financial Statements** _for the year ended 31 December 2025_ 

## **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. 

16 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Notes to the Financial Statements** _for the year ended 31 December 2025_ 

## **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 was 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. 

17 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Notes to the Financial Statements** _for the year ended 31 December 2025_ 

## **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, except quoted securities, 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. 

18 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Notes to the Financial Statements** _for the year ended 31 December 2025_ 

## **3. Comparative Statement of Financial Activities for the year ended 31 December 2024** 

|**Income and endowments from:**<br>Congregational Remittances<br>Donations<br>Legacies<br>Charitable activities<br>Investments<br>Gain on disposal of fixed assets<br>**Total**<br>**Expenditure on:**<br>Raising funds<br>Charitable activities<br>Pension Scheme<br>**Total**<br>Net gains on investments<br>**Net income/(expenditure)**<br>**Transfers between funds**<br>Actuarial loss on defined benefit<br>pension scheme<br>Other losses<br>**Net movement in funds**|**Unrestricted**<br>**Funds**<br>**Restricted**<br>**Funds**<br>**Expendable**<br>**Endowment**<br>**Fund**<br>**Endowment**<br>**Funds**<br>**2024**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>1,398,829<br>3,202,465<br>-<br>-<br>4,601,294<br>55,743<br>84,578<br>1,358<br>-<br>141,679<br>-<br>-<br>8,411<br>-<br>8,411<br>399,413<br>269,435<br>-<br>-<br>668,848<br>520,950<br>89,874<br>6,673<br>-<br>617,497<br>439,739<br>-<br>-<br>-<br>439,739|
|---|---|
||**2,814,674**<br>**3,646,352**<br>**16,442**<br>**-**<br>**6,477,468**|
||21,980<br>-<br>-<br>-<br>21,980<br>1,486,056<br>4,220,411<br>57,680<br>-<br>5,764,147<br>2,289,000<br>-<br>-<br>-<br>2,289,000|
||**3,797,036**<br>**4,220,411**<br>**57,680**<br>**-**<br>**8,075,127**|
||126,229<br>75,536<br>21,366<br>196,363<br>419,494|
||**(856,133)**<br>**(498,523)**<br>**(19,872)**<br>**196,363**<br>**(1,178,165)**|
||(263,054)<br>421,569<br>-<br>-<br>-<br>41,000<br>-<br>-<br>-<br>41,000<br>-<br>(912)<br>-<br>-<br>(912)|
||**(1,078,187)**<br>**(77,866)**<br>**(19,872)**<br>**37,848**<br>**(1,138,077)**|



## **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. 

## 

## 

|Seminary fees<br>Camps income<br>Courses & conferences<br>Rent & service charges<br>Sales of goods & services<br>Seminary fees<br>Camps income<br>Courses & conferences<br>Rent & service charges<br>Sales of goods & services|**Unrestricted**<br>**Funds**<br>**Restricted**<br>**Funds**<br>**Expendable**<br>**Endowment**<br>**Fund**<br>**Endowment**<br>**Funds**<br>**2025**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>-<br>259,628<br>-<br>-<br>259,628<br>160,835<br>-<br>-<br>-<br>160,835<br>15,318<br>3,105<br>-<br>-<br>18,423<br>216,586<br>11,918<br>-<br>-<br>228,504<br>72,102<br>10,952<br> -<br> -<br>83,053|
|---|---|
||**464,841**<br>**285,603**<br> **-**<br> **-**<br>**750,444**|
||**Unrestricted**<br>**Funds**<br>**Restricted**<br>**Funds**<br>**Expendable**<br>**Endowment**<br>**Fund**<br>**Endowment**<br>**Funds**<br>**2024**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>-<br>246,564<br>-<br>-<br>246,564<br>147,958<br>-<br>-<br>-<br>147,958<br>13,218<br>3,726<br>-<br>-<br>16,944<br>178,378<br>11,794<br>-<br>-<br>190,172<br>59,859<br>7,351<br> -<br> -<br>67,210|
||**399,413**<br>**269,435**<br> **-**<br> **-**<br>**668,848**|



19 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Notes to the Financial Statements** _for the year ended 31 December 2025_ 

## **6. Investment income** 

|Interest on loans from Trustees<br>Dividend income<br>Bank interest<br>Interest on loans from Trustees<br>Dividend income<br>Bank interest|**Unrestricted**<br>**Funds**<br>**Restricted**<br>**Funds**<br>**Expendable**<br>**Endowment**<br>**Fund**<br>**Endowment**<br>**Funds**<br>**2025**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>110,776<br>-<br>-<br>-<br>110,776<br>28,653<br>73,411<br>17,698<br>-<br>119,762<br>222,889<br>3,990<br> -<br> -<br>226,879|
|---|---|
||**362,318**<br>**77,401**<br>**17,698**<br> **-**<br>**457,417**|
||**Unrestricted**<br>**Funds**<br>**Restricted**<br>**Funds**<br>**Expendable**<br>**Endowment**<br>**Fund**<br>**Endowment**<br>**Funds**<br>**2024**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>115,117<br>-<br>-<br>-<br>115,117<br>55,233<br>89,874<br>6,673<br>-<br>151,780<br>350,600<br> -<br> -<br> -<br>350,600<br>**520,950**<br>**89,874**<br>**6,673**<br> **-**<br>**617,497**|



## **7. Expenditure for charitable activities** 

|**2025**<br>**Activity**<br>Mission<br>Seminary<br>Recruitment & Training<br>Communications,<br>Publications & Resources<br>Disaster & Relief<br>Other Charitable Activity<br>Mission - Exceptional*|**Staff costs**<br>**Grant**<br>**Funding**<br>**Other**<br>**direct**<br>**costs**<br>**Governance**<br>**costs**<br>**Support**<br>**costs**<br>**2025**<br>**Total**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>3,208,068<br>282,587<br>421,218<br>153,693<br>573,964<br>4,639,530<br>498,368<br>9,527<br>210,562<br>28,227<br>89,415<br>836,099<br>66,980<br>45,110<br>21,286<br>5,240<br>15,771<br>154,387<br>64,447<br>-<br>33,920<br>3,865<br>24,974<br>127,206<br>-<br>2,000<br>31<br>80<br>240<br>2,351<br>-<br>-<br>7,170<br>281<br>63,336<br>70,787<br>**-**<br>517,410<br>-<br>-<br>-<br>517,410|
|---|---|
||**3,837,863**<br>**856,634**<br>**694,187**<br>**191,386**<br>**767,700**<br>**6,347,770**|
||(Note 10)<br>(Note 11)<br>(Note 9)<br>(Note 8)|



* additional grants were made to further the Mission, out of additional unrestricted income received in the year. 

|**2024**<br>**Activity**<br>Mission<br>Seminary<br>Recruitment & Training<br>Communications,<br>Publications & Resources<br>Disaster & Relief<br>Other Charitable Activity|**Staff costs**<br>**Grant**<br>**Funding**<br>**Other**<br>**direct**<br>**costs**<br>**Governance**<br>**costs**<br>**Support**<br>**costs**<br>**2024**<br>**Total**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>2,809,026<br>404,679<br>407,287<br>138,876<br>581,437<br>4,341,305<br>499,974<br>7,025<br>200,719<br>27,143<br>75,313<br>810,174<br>25,413<br>122,858<br>16,541<br>6,321<br>15,213<br>186,346<br>60,749<br>-<br>29,190<br>3,449<br>22,581<br>115,969<br>-<br>20,749<br>103<br>800<br>1,925<br>23,577<br>-<br>7,099<br>200,734<br>7,971<br>70,972<br>286,776|
|---|---|
||**3,395,162**<br>**562,410**<br>**854,574**<br>**184,560**<br>**767,441**<br>**5,764,147**|
||(Note 10)<br>(Note 11)<br>(Note 9)<br>(Note 8)|



20 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Notes to the Financial Statements** _for the year ended 31 December 2025_ 

## **8. Support costs** 

Whenever possible, costs are allocated directly to particular activities. Support costs relate to overheads that are not directly attributable to a specific activity. A breakdown of the components of support costs together with the basis of apportionment to activities is shown in the tables below. 

|Central office<br>Free Church pension<br>Edinburgh building<br>General|**Staff Costs**<br>**Other**<br>**Costs**<br>**2025**<br>**Staff Costs**<br>**Other**<br>**Costs**<br>**2024**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>256,973<br>59,626<br>316,599<br>262,809<br>56,803<br>319,612<br>70,000<br>-<br>70,000<br>230,000<br>5,388<br>235,388<br>364<br>122,504<br>122,868<br>-<br>101,829<br>101,829<br>37,183<br>221,050<br>258,233<br>22,010<br>88,602<br>110,612|
|---|---|
||**364,519**<br>**403,180**<br>**767,700**<br>**514,819**<br>**252,622**<br>**767,441**|



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 based on costs directly attributable to governance activities, as well 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 on the basis of expenditure on each activity. 

|Committee expenses<br>Assembly arrangements<br>Ecumenical relations<br>Audit fees<br>Legal fees - general<br>Staff time|**Salary**<br>**costs**<br>**Other**<br>**direct**<br>**costs**<br>**2025**<br>**Salary**<br>**costs**<br>**Other**<br>**direct**<br>**costs**<br>**2024**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>-<br>10,764<br>10,764<br>-<br>13,491<br>13,491<br>16,792<br>18,288<br>35,080<br>14,188<br>19,105<br>33,293<br>-<br>5,752<br>5,752<br>-<br>8,579<br>8,579<br>-<br>26,249<br>26,249<br>-<br>23,068<br>23,068<br>-<br>6,911<br>6,911<br>-<br>7,274<br>7,274<br>106,630<br> -<br>106,630<br>98,855<br> -<br>98,855|
|---|---|
||**123,422**<br>**67,964**<br>**191,386**<br>**113,043**<br>**71,517**<br>**184,560**|



21 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Notes to the Financial Statements** _for the year ended 31 December 2025_ 

## **10. Employee costs** 

|Gross salaries<br>Employer's national insurance<br>Defined contribution pension costs<br>Honoraria<br>Defined benefit administration and finance costs<br>Pension scheme settlements & curtailments<br>Group life assurance scheme<br>Represented by:<br>Charitable activities<br>Support Costs<br>Governance costs<br>Pension scheme settlements & curtailments<br>Total|**2025**<br>**2024**<br>**£**<br>**£**<br>3,454,631<br>3,150,031<br>389,536<br>272,780<br>350,919<br>329,978<br>23,535<br>18,225<br>70,000<br>230,000<br>-<br>2,289,000<br>37,183<br>22,010|
|---|---|
||**4,325,804**<br>**6,312,024**|
||3,837,863<br>3,395,162<br>364,519<br>514,819<br>123,422<br>113,043<br>-<br>2,289,000|
||**4,325,804**<br>**6,312,024**|



During the year the Church has contributed £350,919 (2024: £329,978) into a defined contribution pension scheme. At the year end, pension contributions outstanding to the defined contribution scheme were £48,848 (2024 - £47,830). 

The average number of employees during the year was 123 (2024: 125) on the payroll which includes ministers who are office-holders rather than employees of the Church. 

The analysis of staff (headcount) employed was: 

|Mission<br>Seminary<br>Recruitment & Training<br>Communications, Publications & Resources<br>Office Support Services|**2025**<br>**2024**<br>92<br>98<br>11<br>10<br>-<br>-<br>3<br>3<br>17<br>14|
|---|---|
||**123**<br>**125**|



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

|||**2025**|**2024**|
|---|---|---|---|
|£60,000|- £69,999|1|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 (2024: 8)), was £353,965 (2024: £366,209). 

22 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Notes to the Financial Statements** _for the year ended 31 December 2025_ 

## **11. Grants and donations** 

|Mission<br>Seminary<br>Recruitment &<br>Training<br>Disaster & Relief<br>Other Charitable<br>Mission –|**Grants to**<br>**individuals**<br>**Grants to**<br>**institutions**<br>**Total 2025**<br>**Grants to**<br>**individuals**<br>**Grants to**<br>**institutions**<br>**Total 2024**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>36,651<br>245,936<br>282,587<br>987<br>403,692<br>404,679<br>9,527<br>-<br>9,527<br>7,025<br>-<br>7,025<br>11,519<br>33,591<br>45,110<br>24,267<br>98,591<br>122,858<br>-<br>2,000<br>2,000<br>-<br>20,749<br>20,749<br>-<br>-<br>-<br>7,099<br>-<br>7,099<br>-<br>517,410<br>517,410<br>-<br>-<br>-|
|---|---|
||**57,697**<br>**798,937**<br>**856,634**<br>**39,378**<br>**523,032**<br>**562,410**|



Grants to institutions can be categorised into the following main recipients: 

|Grants to UK Mission Partners (12 recipients)<br>Grants to Overseas Mission Partners (11 recipients)<br>Grants to Free Church congregations (24 recipients)|**2025**<br>**2024**<br>**£**<br>**£**<br>73,393<br>42,249<br>142,709<br>14,314<br>582,835<br>466,469<br>**798,937**<br>**523,032**|
|---|---|



Grants include commitments to future years. The main grants in the year comprised of property grants, which are provided to eligible congregations to assist in purchasing buildings required for charitable activities, grants made to congregations to assist with the training of ministers, and grants to various charitable organizations in the UK and abroad to further the mission of the Church. In 2025, there was an increase in unrestricted income, and part of this was used to pay out grants to Overseas Mission Partners and Free Church congregations. 

## **12. Tangible fixed assets** 

|Cost or Deemed Cost<br>At 1 January 2025<br>Additions<br>Disposals<br>**At 31 December 2025**<br>Depreciation<br>At 1 January 2025<br>Charge for year<br>Disposals<br>**At 31 December 2025**<br>Net book value<br>Net book value at 31 December 2025<br>Analysed as follows:<br>Cost<br>Deemed Cost<br>**At 31 December 2025**<br>**At 31 December 2024**||**Heritable**<br>**property**<br>**£**<br>4,634,469<br>-<br>(29,622)|**Motor**<br>**vehicles**<br>**Fixtures &**<br>**equipment**<br>**£**<br>**£**<br>8,000<br>366,009<br>-<br>348<br> -<br> -|**Motor**<br>**vehicles**<br>**Fixtures &**<br>**equipment**<br>**£**<br>**£**<br>8,000<br>366,009<br>-<br>348<br> -<br> -|**Total**<br>**£**<br>5,008,479<br>348<br>(29,622)|
|---|---|---|---|---|---|
|||4,604,847|8,000|366,357|4,979,205|
|||-<br> <br>-<br> -|(8,000)<br>(<br>-<br> -<br>|345,231)<br> <br>(15,205)<br> -|(353,231)<br>(15,205)<br> -|
|||-<br>|(8,000)<br>(|360,436)|(368,436)|
|||**4,604,847**<br>1,409,847<br>3,195,007<br>**4,604,847**<br>**4,634,468**|**-**<br>-<br> -<br> **-**<br> **-**<br>||**4,610,769**<br>1,415,762<br>3,195,007<br>**4,610,769**<br>**4,655,249**|



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. A property in Peru which was used as a headmaster’s house was sold in March 2025. 

23 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Notes to the Financial Statements** _for the year ended 31 December 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. 

## **13. Investments** 

|**2025**<br>**£**<br>Quoted investments (note 20)<br>6,745,778<br>Cash<br>47,793<br>**6,793,571**<br>**Quoted investments**<br>**2025**<br>**£**<br>Market value at 1 January<br>6,180,700<br>Acquisition of investments<br>2,020,140<br>Disposals of investments<br>(1,949,654)<br>(Decrease)/increase in value of investments<br>494,592<br>**Market Value at 31 December**<br>**6,745,778**<br>Historical cost as at 31 December<br>5,608,794|**2024**<br>**£**<br>6,180,700<br>115,572<br>**6,296,272**<br>**2024**<br>**£**<br>5,753,174<br>892,709<br>(942,014)<br>476,831<br>**6,180,700**<br>5,307,653|
|---|---|



All investments are carried at their fair value. Investments in equities and fixed securities are all traded in quoted public markets. Holdings in common investment funds, unit trusts and open-ended investment companies are at the bid price. The basis of fair value for quoted investments is equivalent to the market value, using the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value).  The significance of financial instruments to the ongoing financial stability of the Church is considered in the financial review and investment policy sections of the Trustees’ Report. 

The main risk to the Church from financial instruments lies in the combination of uncertain investment markets and yield volatility. 

The Church’s investments are mainly traded in markets with good liquidity and high trading volumes. The Church has no material investment holdings in markets subject to exchange controls or trading restrictions.  The Church manages these investment risks by retaining expert advisors and operating an investment policy that provides for a high degree of diversification of holdings within investment asset classes that are quoted on recognised stock exchanges. 

## **14. Debtors: amounts falling due within one year** 

|Trade debtors<br>Loans from Board of Trustees<br>Prepayments and Accrued Income<br>Other debtors<br>**. Cash and cash equivalents**<br>Balances held in current accounts<br>Balances held in deposit accounts|**2025**<br>**£**<br>298,292<br>362,551<br>352,061<br>77,106<br>**1,090,010**<br>**2025**<br>**£**<br>336,602<br>6,901,357<br>**7,237,959**<br>|**2024**<br>**£**<br>112,746<br>177,431<br>51,723<br>131,897<br>**473,797**<br>**2024**<br>**£**<br>643,664<br>6,490,385<br>**7,134,049**|
|---|---|---|



## **15. Cash and cash equivalents** 

24 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Notes to the Financial Statements** _for the year ended 31 December 2025_ 

## **16. Debtors: amounts falling due in more than one year** 

|**16.** **Debtors: amounts falling due in more than one year**|||
|---|---|---|
|Loans from Board of Trustees<br>Other debtors<br>**17.** **Creditors: falling due within one year**<br>HMRC – tax and national insurance<br>Other creditors<br>Grant commitments (note 19)<br>Congregational balances held on deposit<br>Deferred income*<br>Accrued expenses|**2025**<br>**£**<br>2,645,892<br>24,140<br>**2,670,032**<br>**2025**<br>**£**<br>86,035<br>67,934<br>55,000<br>658,013<br>211,997<br>54,980<br>**1,133,959**|**2024**<br>**£**<br>2,341,891<br>7,872<br>**2,349,763**|
|||**2024**<br>**£**<br>69,194<br>215,395<br>196,692<br>533,346<br>141,259<br>60,455<br>**1,216,341**|



*Deferred income relates to fees for conferences and seminary courses, subscriptions for magazines and other income received which relates to 2026. 

## **18. Creditors: falling due in more than one year** 

|Grant commitments<br>Congregational balances held in the share pool<br>Congregational investments held elsewhere<br>Congregational balances held on deposit|**2025**<br>**£**<br>25,000<br>815,207<br>7,740<br>3,091,005<br>**3,938,952**|**2024**<br>**£**<br>80,000<br>828,897<br>7,177<br>3,322,421<br>**4,238,495**|
|---|---|---|



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

## **19. Grant commitments included in creditors** 

|**. Grant commitments included in creditors**|||
|---|---|---|
||**2025**|**2024**|
||**£**|**£**|
|Balance at 1 January|276,692|151,525|
|Commitments during year|80,000|276,692|
|Amounts released in relation to previous periods|(276,692)|(151,525)|
|Balance at 31 December|**80,000**|**276,692**|



Grant commitments related to grants awarded relating to 2026 and beyond. 

## **20. Financial assets and liabilities at fair value through net income** 

||**2025**|**2024**|
|---|---|---|
||**£**|**£**|
|Financial assets at fair value|6,745,778|6,180,700|
|Financial assets at fair value comprises quoted investments.|||



25 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Notes to the Financial Statements** _for the year ended 31 December 2025_ 

## **21. 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 (2024: 6) of the trustees are on the payroll of the Church in their capacity as Ministers and none of the trustees (2024: 0) was engaged to assist with arrangements for the General Assembly.  Rev Murdo Martin serves as Principal of Edinburgh Theological Seminary. 

Remuneration paid amounted to: 

|Salaries<br>Employers’ national insurance<br>Pension costs|**2025**<br>**£**<br>185,973<br>20,305<br>15,992<br>**222,270**|**2024**<br>**£**<br>196,105<br>19,064<br>19,595<br>**234,764**|
|---|---|---|



The salary and stipend payments made to individual Trustees were: 

|**Trustee**<br>C I MacLeod<br>M Martin<br>R C Gray<br>N MacMillan<br>A MacAulay<br>B Wilks<br>D MacLeod|**Stipend/**<br>**salary**<br>**Pension**<br>**Costs**<br>**2025**<br>**Total**<br>**Stipend/**<br>**salary**<br>**Pension**<br>**Costs**<br>**2024**<br>**Total**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>-<br>-<br>-<br>27,580<br>2,758<br>30,338<br>58,464<br>6,087<br>64,551<br>55,160<br>5,630<br>60,790<br>34,631<br>2,923<br>37,554<br>30,080<br>2,758<br>32,838<br>12,630<br>1,051<br>13,681<br>28,125<br>2,892<br>31,017<br>32,672<br>3,008<br>35,680<br>27,580<br>2,799<br>30,379<br>32,395<br>2,923<br>35,318<br>27,580<br>2,758<br>30,338<br>15,181<br>-<br>15,181|
|---|---|
||**185,973**<br>**15,992**<br>**201,965**<br>**196,105**<br>**19,595**<br>**215,700**|



Trustees are reimbursed expenses for attending meetings and duties directly related to their duties as a Trustee. In 2025, eleven Trustees were paid total expenses of £6,198 (2024: 11 Trustees - £4,082) for travel and subsistence in connection with their trustee duties. In addition, three of the Trustees were reimbursed £15,276 (2024: 5 Trustees - £16,803) for training, travel and subsistence in relation to their non-trustee activities in the Church. There was £768 outstanding at the year-end (2024 - £746). Included within Debtors is a loan of £15,000 made to M Martin (Trustee) for the purposes of acquiring a vehicle to aid with carrying out his role as employee of the Free Church of Scotland. 

26 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Notes to the Financial Statements** _for the year ended 31 December 2025_ 

## **22. Unrestricted Funds** 

|**General Fund**<br>**Designated Funds**<br>Assets fund<br>Youth work<br>Camps<br>Communications<br>Edinburgh building<br>Let property<br>International mission<br>Development<br>Other<br>**Unrestricted funds**<br>Pension Scheme<br>**Total unrestricted**<br>**funds**<br>**General Fund**<br>**Designated Funds**<br>Assets fund<br>Youth work<br>Camps<br>Communications<br>Edinburgh building<br>Let property<br>International mission<br>Development<br>Other funds<br>**Unrestricted funds**<br>Pensions surplus<br>**Total unrestricted**<br>**funds**|**Balance at**<br>**1 Jan 2025**<br>**Income**<br>**Expenditure**<br>**Transfers**<br>**Other**<br>**recognised**<br>**gains &**<br>**losses**<br>**Balance at 31**<br>**Dec 2025**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**|
|---|---|
||**5,870,026**<br>**2,857,438**<br>**(1,269,670)**<br>**(272,841)**<br>**139,499**<br>**7,324,452**|
||4,655,249<br>-<br>-<br>(44,480)<br>-<br>4,610,769<br>1,700<br>17,128<br>(13,874)<br>(3,254)<br>-<br>1,700<br>5,001<br>211,273<br>(264,901)<br>52,270<br>-<br>3,643<br>-<br>30,137<br>(98,367)<br>68,230<br>-<br>-<br>-<br>59,076<br>(106,888)<br>47,812<br>-<br>-<br>-<br>157,510<br>(15,979)<br>(141,531)<br>-<br>-<br>200,000<br>-<br>-<br>-<br>-<br>200,000<br>106,006<br>-<br>-<br>393,994<br>-<br>500,000<br>-<br>13,351<br>(48,003)<br>34,652<br>-<br>-|
||**4,967,956**<br>**488,475**<br>**(548,012)**<br>**407,693**<br> **-**<br>**5,316,112**|
|||
||**10,837,982**<br>**3,345,913**<br>**(1,817,682)**<br>**134,852**<br>**139,499**<br>**12,640,564**<br>-<br>65<br>(70,000)<br>55,935<br>14,000<br>-|
||**10,837,982**<br>**3,345,978**<br>**(1,873,682)**<br>**190,787**<br>**153,499**<br>**12,640,564**|
||**Balance at**<br>**1 Jan 2024**<br>**Income**<br>**Expenditure**<br>**Transfers**<br>**Other**<br>**recognised**<br>**gains &**<br>**losses**<br>**Balance at 31**<br>**Dec 2024**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**|
||**7,328,658**<br>**2,409,235**<br>**(776,456)**<br>**(3,217,639)**<br>**126,229**<br>**5,870,027**|
||4,274,465<br>-<br>-<br>380,784<br>-<br>4,655,249<br>1,700<br>14,445<br>(17,827)<br>3,382<br>-<br>1,700<br>5,341<br>183,682<br>(225,601)<br>41,579<br>-<br>5,001<br>-<br>20,564<br>(89,939)<br>69,375<br>-<br>-<br>-<br>42,992<br>(101,829)<br>58,837<br>-<br>-<br>-<br>135,386<br>(22,017)<br>(113,369)<br>-<br>-<br>200,000<br>-<br>-<br>-<br>-<br>200,000<br>106,006<br>-<br>-<br>-<br>-<br>106,006<br> -<br>5,868<br>(44,367)<br>38,499<br> -<br> -|
||**4,587,512**<br>**402,937**<br>**(501,580)**<br>**479,087**<br>**-**<br>**4,967,956**|
|||
||**11,916,170**<br>**2,812,172**<br>**(1,278,036)**<br>**(2,738,552)**<br>**126,229**<br>**10,837,983**<br>**-**<br>2,502<br>(2,519,000)<br>2,475,498<br>41,000<br>-<br>**11,916,170**<br>**2,814,674**<br>**(3,797,036)**<br>**(263,054)**<br>**167,229**<br>**10,837,983**|



27 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Notes to the Financial Statements** _for the year ended 31 December 2025_ 

## **22. Unrestricted Funds (continued)** 

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. 

## **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. 

## **23. Restricted funds** 

|Mission Funds<br>Training of the ministry<br>ETS<br>Disaster & relief<br>Sundry funds<br>**Total restricted funds**|**Balance at**<br>**1 Jan 2025**<br>**Income**<br>**Expenditure**<br>**Transfers**<br>**Other**<br>**recognised**<br>**gains &**<br>**losses**<br>**Balance at**<br>**31 Dec 2025**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>880,113  4,079,843<br>(3,633,592)<br>(649,639)<br>16,058<br>692,783<br>(26,263)<br>5,510<br>(133,377)<br>152,673<br>3,261<br>1,804<br>575,980<br>301,264<br>(615,821)<br>312,453<br>36,584<br>610,460<br>12,165<br>5,275<br>(2,031)<br>-<br>-<br>15,409<br>245,807<br>4,155<br>(2,221)<br>(6,274)<br>22,340<br>263,807|
|---|---|
||**1,687,802  4,396,047**<br>**(4,387,042)**<br>**(190,787)**<br>**78,243**<br>**1,584,263**|



28 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Notes to the Financial Statements** _for the year ended 31 December 2025_ 

## **23. Restricted funds (continued)** 

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



## **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.** 

## **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. 

## **24. Endowment funds** 

|**. Endowment funds**||
|---|---|
|**Expendable**<br>College<br>**Permanent**<br>College general<br>Sustentation<br>Home missions<br>Rural areas<br>Retired ministers and<br>professors<br>Foreign missions<br>Jewish mission<br>Church extension<br>Church and manse<br>building fund<br>Other funds<br>Training of ministry|**Balance at**<br>**1 Jan 2025**<br>**Income**<br>**Expenditure**<br>**Transfers**<br>**Other**<br>**recognised**<br>**gains & losses**<br>**Balance at**<br>**31 Dec**<br>**2025**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**391,338**<br>**45,489**<br>**(100,416)**<br>**-**<br>**22,132**<br>**358,543**|
||459,497<br>-<br>-<br>-<br>36,564<br>496,061<br>1,282,701<br>-<br>-<br>-<br>102,071<br>1,384,771<br>41,858<br>-<br>-<br>-<br>3,331<br>45,189<br>112,941<br>-<br>-<br>-<br>8,987<br>121,929<br>-<br>-<br>-<br>-<br>-<br>-<br>461,448<br>-<br>-<br>-<br>36,720<br>498,167<br>29,787<br>-<br>-<br>-<br>2,370<br>32,157<br>53,463<br>-<br>-<br>-<br>4,254<br>57,717<br>30,187<br>-<br>-<br>-<br>2,402<br>32,589<br>71,072<br>-<br>-<br>-<br>5,655<br>76,728<br>13,107<br>-<br>-<br>-<br>1,043<br>14,149|
||**2,556,061**<br>**-**<br>**-**<br>**-**<br>**203,339**<br>**2,759,460**|



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. 

29 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Notes to the Financial Statements** _for the year ended 31 December 2025_ 

## **24. Endowment funds (continued)** 

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

## **Explanation of funds** 

## **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. 

## **Permanent endowment fund** 

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. The main endowments and their purposes are: 

Sustentation – used for general costs of ministry College general – used to support the work of the ETS Foreign mission – used to support foreign mission work 

30 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Notes to the Financial Statements** _for the year ended 31 December 2025_ 

## **25. 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**<br>General Fund<br>**Restricted Funds**<br>Jewish Mission<br>Training of the ministry<br>ETS<br>Sundry Funds<br>**Endowment funds**<br>College Endowment Fund<br>College<br>Sustentation<br>Home Missions<br>Rural Areas<br>Foreign Missions General<br>Jewish Mission<br>Church Extension<br>Church & Manse Bldg Fund<br>Perm Endow - Other<br>Training<br>Congregational Investments|**At 1st January 2025**<br>**Additions and**<br>**Withdrawals**<br>**At 31st December 2025**<br>**Units**<br>**Market**<br>**Value**<br>**Units**<br>**Value**<br>**Units**<br>**Market**<br>**Value**<br>**£**<br>**£**<br>**£**<br>**283,278**<br>**1,654,226**<br>**17,167**<br>**71,625**<br>**300,445**<br>**1,865,350**|
|---|---|
||34,585<br>201,962<br>-<br>-<br>34,585<br>218,020<br>25,865<br>151,044<br>-<br>-<br>25,865<br>163,053<br>78,792<br>460,112<br>-<br>-<br>78,792<br>496,695<br>29,272<br>170,932<br>-<br>-<br>29,272<br>184,523|
||**168,514**<br>**984,050**<br>**-**<br>**-**<br>**168,514**<br>**1,062,291**|
||**47,666**<br>**278,350**<br>**-**<br>**-**<br>**47,666**<br>**300,482**|
||78,750<br>459,867<br>-<br>-<br>78,750<br>496,432<br>219,834<br>1,283,737<br>-<br>-<br>219,834<br>1,385,808<br>7,174<br>41,892<br>-<br>-<br>7,174<br>45,223<br>19,356<br>113,032<br>-<br>-<br>19,356<br>122,019<br>77,889<br>454,840<br>-<br>-<br>77,889<br>491,004<br>5,105<br>29,811<br>-<br>-<br>5,105<br>32,181<br>9,163<br>53,506<br>-<br>-<br>9,163<br>57,761<br>5,173<br>30,211<br>-<br>-<br>5,173<br>32,613<br>13,376<br>78,110<br>-<br>-<br>13,376<br>84,320<br>2,245<br>13,112<br>-<br>-<br>2,245<br>14,155|
||**438,065**<br>**2,558,118**<br>**-**<br>**-**<br>**438,065**<br>**2,761,516**|
||**141,944**<br>**828,897**<br>**(17,167)**<br>**(71,625)**<br>**124,777**<br>**815,207**|
||**1,079,467**<br>**6,303,641**<br>**-**<br>**-**<br>**1,079,366**<br>**6,804,847**|



31 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Notes to the Financial Statements** _for the year ended 31 December 2025_ 

## **25. Funds held in share pool (continued)** 

|**Unrestricted Funds**<br>General Fund<br>**Restricted Funds**<br>Jewish Mission<br>Training of the ministry<br>ETS<br>Sundry Funds<br>**Endowment funds**<br>College Endowment Fund<br>College<br>Sustentation<br>Home Missions<br>Rural Areas<br>Retired Ministers & Profs<br>Foreign Missions General<br>Jewish Mission<br>Church Extension<br>Church & Manse Bldg Fund<br>Perm Endow – Other<br>Training<br>Congregational Investments|**At 1st January 2024**<br>**Additions and**<br>**Withdrawals**<br>**At 31st December 2024**<br>**Units**<br>**Market**<br>**Value**<br>**Units**<br>**Value**<br>**Units**<br>**Market**<br>**Value**<br>**£**<br>**£**<br>**£**<br>**253,387**<br>**1,366,092**<br>**29,891**<br>**161,155**<br>**283,278**<br>**1,654,226**<br>34,585<br>186,458<br>-<br>-<br>34,585<br>201,962<br>25,865<br>139,450<br>-<br>-<br>25,865<br>151,044<br>78,792<br>424,793<br>-<br>-<br>78,792<br>460,112<br>29,272<br>157,812<br>-<br>-<br>29,272<br>170,932<br>**168,514**<br>**908,513**<br>**-**<br>**-**<br>**168,514**<br>**984,050**<br>**47,666**<br>**256,984**<br>**-**<br>**-**<br>**47,666**<br>**278,350**<br>78,750<br>424,568<br>-<br>-<br>78,750<br>459,867<br>219,834<br>1,185,19<br>-<br>-<br>219,834<br>1,283,737<br>7,174<br>38,676<br>-<br>-<br>7,174<br>41,892<br>19,356<br>104,356<br>-<br>-<br>19,356<br>113,032<br>29,427<br>158,653<br>(29,427) (158,653)<br>-<br>-<br>77,889<br>419,926<br>-<br>-<br>77,889<br>454,840<br>5,105<br>27,523<br>-<br>-<br>5,105<br>29,811<br>9,163<br>49,399<br>-<br>-<br>9,163<br>53,506<br>5,173<br>27,891<br>-<br>-<br>5,173<br>30,211<br>13,376<br>72,114<br>-<br>-<br>13,376<br>78,110<br>2,245<br>12,106<br>-<br>-<br>2,245<br>13,112<br>**467,492**<br>**2,520,40**<br>**(29,427)   (158,653)**<br>**438,065**<br>**2,558,118**<br>**142,408**<br>**767,771**<br>**(464)**<br>**(2,502)**<br>**141,944**<br>**828,897**|
|---|---|
||**1,079,467**<br>**5,819,768**<br>**-**<br>**-**<br>**1,079,467**<br>**6,303,641**|



## **26. 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. 

32 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Notes to the Financial Statements** _for the year ended 31 December 2025_ 

## **26. Free Church of Scotland pension scheme(continued)** 

On 4 December 2024 the Scheme completed a Buy-In transaction with Just Retirement Limited covering all of the Scheme’s pension obligations. The scheme is in the process of a buy-out which is expected to be completed by mid-2026. The actuary has reported a nil value in relation to the assets and liabilities of the scheme. 

## **Explanation of amounts in the financial statements** 

|**Amounts recognised in the balance sheet at 31**|**Value at 31**|**Value at 31**|
|---|---|---|
|**December**|**December 2025**|**December 2024**|
||**£**|**£**|
|Fair value of assets|-|6,659,000|
|Present value of funded obligations|-|(6,643,000)|
|**Surplus**|**-**|**16,000**|
|Effect of asset ceiling|**-**|**(16,000)**|
|**Net defined benefit asset at 31 December**|**-**|**-**|
|**Amount recognised in the statement of financial**|**31 December 2025**|**31 December 2024**|
|**activities over the year**|||
||**£**|**£**|
|Administration costs|71,000|288,000|
|Interest on liabilities|343,000|320,000|
|Interest on assets|(344,000)|(378,000)|
|Net administration costs|70,000|230,000|
|Settlement and curtailment cost|**-**|2,289,000|
|**Total**|**70,000**|**2,519,000**|
|**Reconciliation of Assets and Defined Benefit Obligation**|||
|The change in the assets over the period was:|||
||**31 December 2025**|**31 December 2024**|
||**£**|**£**|
|Fair value of assets at the beginning of the period|6,659,000|7,624,000|
|Interest on assets|344,000|378,000|
|Church contributions|56,000|2,478,000|
|Benefits paid|(469,000)|(566,000)|
|Administration costs|(71,000)|(288,000)|
|Change due to settlements and curtailments|(6,516,000)|(2,289,000)|
|Return on plan assets less interest|(3,000)|(678,000)|
|**Fair value of assets at the end of the period**|**-**|**6,659,000**|



33 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Notes to the Financial Statements** _for the year ended 31 December 2025_ 

## **26. Free Church of Scotland pension scheme(continued)** 

The change in the defined benefit obligation over the period was: 

|Defined Benefit Obligation at the beginning of the<br>Interest costs<br>Benefits paid<br>Changes due to settlements and curtailments<br>Experience loss / (gain) on defined benefit obligation<br>Changes to demographic assumptions<br>Changes to financial assumptions<br>**Defined benefit obligation at the end of the period**|**31 December 2025**<br>**31 December 2024**<br>**£**<br> **£**<br>6,643,000<br>7,267,000<br>343,000<br>320,000<br>(469,000)<br>(566,000)<br>(6,516,000)<br>-<br>(1,000)<br>195,000<br>-<br>(16,000)<br>-<br>(557,000)|
|---|---|
||**-**<br>**6,643,000**|



## **Assets** 

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

|**Asset Category**|**31 December 2025**|**31 December 2024**|
|---|---|---|
|UK equities|-|-|
|Overseas equities|-|-|
|Property|-|-|
|Gilts|-|-|
|Bonds|-|-|
|Fixed Interest|-|-|
|Other|-|-|
|Cash|-|-|
|Just Retirement Ltd Buy-In policy|100%|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. 

34 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Notes to the Financial Statements** _for the year ended 31 December 2025_ 

## **26.  Free Church of Scotland pension scheme(continued)** 

## **Actuarial assumptions** 

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

||**31 December 2025**|**31 December 2024**|
|---|---|---|
|Discount rate|N/A|5.35%|
|Inflation assumption (RPI)|N/A|3.50%|
|Inflation assumption (CPI)|N/A|2.95%|
|CPI pension increases capped at 5%|N/A|2.90%|
|Revaluation in deferment|||
|Post retirement mortality assumption|N/A|97% of S3PMA_H for|
|||males and 108% of S3PFA|
|||for females with CMI|
|||2023 projections using a|
|||long-term improvement|
|||rate of 1.25% pa, an initial|
|||addition parameter of 0%|
|||pa and core 2023 weight|
|||parameters (0%, 0%, 15%,|
|||15%)|
|Tax free cash|N/A|Members are assumed to|
|||commute 10% of pension|
|||at retirement|



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

|**Life expectancy at age 65**|**31 December 2025**|**31 December 2024**|
|---|---|---|
|Male currently aged 45|N/A|20.8|
|Male currently aged 65|N/A|19.5|
|Female currently aged 45|N/A|24.8|
|Female currently aged 65|N/A|23.4|



35 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Notes to the Financial Statements** _for the year ended 31 December 2025_ 

## **27. Analysis of net assets by fund** 

Fund balances at 31[st] December 2025 are represented by: 

|**Fixed assets**<br>Tangible fixed assets<br>Investments<br>**Current assets**<br>Stock<br>Debtors – amounts falling<br>due within a year<br>Bank & cash<br>**Debtors**<br>Amounts falling due after<br>one year<br>**Creditors**<br>Amounts falling due within<br>one year<br>**Creditors**<br>Amounts falling due after<br>one year|**Unrestricted**<br>**funds**<br>**Restricted**<br>**funds**<br>**Expendable**<br>**endowment**<br>**funds**<br>**Permanent**<br>**endowment**<br>**funds**<br>**Total**<br>**funds**<br>**2025**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>4,610,769<br>-<br>-<br>-<br>**4,610,769**<br>2,671,337<br>1,062,292<br>300,482<br>2,759,460<br>**6,793,571**<br>13,400<br>-<br>-<br>-<br>**13,400**<br>843,527<br>246,483<br>-<br>-<br>**1,090,010**<br>6,575,016<br>604,882<br>58,061<br>-<br>**7,237,959**<br>2,670,032<br>-<br>-<br>-<br>**2,670,032**<br>(829,565)<br>(304,394)<br>-<br>-<br>**(1,133,959)**<br>(3,913,952)<br>(25,000)<br>-<br>-<br>**(3,938,952)**|
|---|---|
||**12,640,564**<br>**1,584,263**<br>**358,543**<br>**2,759,460**<br>**17,342,830**|



36 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Notes to the Financial Statements** _for the year ended 31 December 2025_ 

## **27. Analysis of net assets by fund (continued)** 

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

|**Fixed assets**<br>Tangible fixed assets<br>Investments<br>**Current assets**<br>Stock<br>Debtors<br>Bank & cash<br>**Debtors**<br>Amounts falling due after<br>one year<br>**Creditors**<br>Amounts falling due within<br>one year<br>**Creditors**<br>Amounts falling due after<br>one year<br>**Pension scheme deficit**|**Unrestricted**<br>**funds**<br>**Restricted**<br>**funds**<br>**Expendable**<br>**endowment**<br>**funds**<br>**£**<br>**£**<br>**£**<br>4,655,249<br>-<br>-<br>2,475,754<br>984,050<br>278,350<br>18,890<br>-<br>-<br>392,462<br>81,335<br>-<br>5,874,109<br>1,149,009<br>112,988<br>2,349,763<br>-<br>-<br>(825,480)<br>(324,017)<br>-<br>(4,158,495)<br>(25,000)<br>-<br>-<br>-<br>-|**Permanent**<br>**endowment**<br>**funds**<br>**Total**<br>**funds**<br>**2024**<br>**£**<br>**£**<br>-<br>**4,655,249**<br>2,558,118<br>**6,296,272**<br>-<br>**18,890**<br>-<br>**473,797**<br>(2,057)<br>**7,134,049**<br>-<br>**2,349,763**<br>-<br>**(1,149,497)**<br>-<br>**(4,238,495)**<br>-<br>**-**|
|---|---|---|
||**10,837,983**<br>**1,687,802**<br>**391,338**|**2,556,061**<br>**15,473,184**|



37 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Notes to the Financial Statements** _for the year ended 31 December 2025_ 

## **28. 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: 

- Permanent endowments on behalf of congregations under the division of assets of 1929. 

- Funds arising from sale of property which must be lodged with the Church under the model trust deed under which most congregational properties are held. 

The movements in funds held are detailed below: 

## **Funds held as cash** 

|Balance at 1 January<br>Additions<br>Withdrawals<br>**Balance at 31 December**<br>**Funds held as share pool investments**<br>Balance at 1 January<br>Transfers from/ (to) cash<br>Additional investment<br>Sale of investments<br>Revaluation of investments<br>**Balance at 31 December**<br>**Funds held as other investments**<br>Balance at 1 January<br>Revaluation of investments<br>**Balance at 31 December**<br>**Total funds held**||**2025**<br>**2024**<br>**£**<br>**£**<br>3,855,767<br>4,616,955<br>312,019<br>250,394<br>(418,768)<br>(1,011,582)|
|---|---|---|
|||**3,749,018**<br>**3,855,767**|
|||**2025**<br>**2024**<br>**£**<br>**£**<br>828,897<br>767,771<br>(100,250)<br>(2,502)<br>28,625<br>-<br>-<br>-<br>57,935<br>63,628|
|||**815,207**<br>**828,897**|
|||**2025**<br>**2024**<br>**£**<br>**£**<br>7,177<br>6,559<br>563<br>618|
|||**7,740**<br>**7,177**|
||||
|||**4,571,965**<br>**4,691,841**|



38 



Docusign Envelope ID: 5E1A54C5-E8A9-83AF-8257-1624BF4D5029 

## Free Church of Scotland 

## **Notes to the Financial Statements** _for the year ended 31 December 2025_ 

## **29. Reconciliation of net income/(expenditure) to net cash flow from operating activities** 

|**_Net income/ (expenditure) for the reporting period_**<br>**Adjustments for:**<br>Depreciation charges<br>Current service costs – pension<br>Payments to pension scheme*<br>(Gains)/Losses on investments<br>Foreign exchange loss<br>Dividends and interest from investments<br>Interest paid to congregations<br>(Profit)/loss on the sale of fixed assets<br>Non-cash element of South America grant<br>(Increase)/Decrease in stocks<br>Decrease/(Increase) in debtors<br>(Decrease)/Increase in creditors<br>**_Net cash used in operating activities_**|**2025**<br>**2024**<br>**£**<br>**£**<br>1,856,141<br>(919,969)<br>15,205<br>20,745<br>71,000<br>288,000<br>(56,000)<br>(191,502)<br>(443,273)<br>(419,494)<br>(494)<br>(912)<br>(457,417)<br>(617,497)<br>152,412<br>176,179<br>(249,307)<br>(439,739)<br>210,650<br>-<br>5,490<br>(10,201)<br>(936,482)<br>646,012<br>(381,925)<br>(486,079)|
|---|---|
||**(214,000) (2,212,653)**|



*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 comparative Statement of Financial Activities and so already included in the comparative “Net expenditure for the reporting period” figure. 

39