ST JAMES THE LESS CRUDEN BAY SC013851 ANNUAL REPORT AND ACCOUNTS YEAR ENDED 30 SEFfEMBER 2024 CONTENTS PAGE Legal and AdmInbtrat￿8 Informatkjn Trustees l Rectors ReFQrt Ind8pendent Ex8miner8 Report Statement of Receipts and Payrrents Stat8m8nt of Balances Notes lo the Ststaments of A¢¢ount 6t09 ST JAMES THE LESS CRUDEN BAY 8C013851 LEGAL AND ADMINISTRATIVE INFORMATION YEAR ENDED 30 SEPTEMBER 2024 Ind8p8nd8nt Examin•r Bankers rgin Mcney 43 Broad Streot P8terh8ad B42 1JB Church Addrn Ch*hlll Cruden Bay B42 OSF Inv•8lm•nt Managers ewh DolY)In Blon￿lM House Fountsknhall Road berdeen B154DT Independent Examlnèrfs Report to the Trustees of St James tho Less Scottish Episcopal Church Registered Charity No SC013851 I rgport on tha accounts of St Jame6 th8 Le68 EpBcopal Church frx the yoar endod 30 Soptamb 2024. The CPArty's trustee8 are re$Fo￿th for the preparatr)n of the accounts Mi accordan¢e with the terms of the Charthes and Trustee Inv&8tment IScotl8rKII Act ￿05 and Charths Accounts {ScolLgndl Ragulati)ns 2006 (a$ amgndod). Tho charty trustoos consKlor that the audit requirement of Regubtion 10{1) (d} of the 2006 Accounts RegulatM?ns does not appty.11 is my respon8t)ilty to examine the accounts as required under seclkn 44(1) (cl ol ￿ kt and lo Stale whether Part￿ular matters have corrp to my allenlh)n. Bas18 of Indepandant examlnof8 8tatom•nt My examination Is carrted out wi accordar￿e w*h R￿ul8t￿)n 11 of th8 20C6 kncounts Regulations. 8xaminatDn includÉÈ É rèvi￿ of thè 8ccountirvJ recA)rd8 kept by tho charty and a comparison of the &counts presanted those rocords. It also ￿ClUdeS consKleratYJn of ary unusual items or dk8closures In the accounts and 88eks explana￿rIS from the trustees concerning any 8u¢h matter8. The procedures undertaken do not provKle all the evKlence tha w(M*J be requred in an audit arKI consequently I do not express an 8uJK cwnb)n M lh8 vkn tyrfen by ttie aCc￿nts. Indep￿dent exanlnerfs staternent In the course of ry examnatK*n, no mattff has coma to my att8ntk¥n: whkh gwes me reasonabb ca￿8 to bel￿e that v) ￿Y materkql respect the requiremants.. to koop a¢counth)g ro¢ord8 kn accordanco wlth So¢tlon 44(1 } {a) oftho 2005 Act and ReguLqtDn 4 of the 2006 Accounts RegulatNJn3. and to prepare 8CCOLmts accord wrth Ihe accounts)g recLYas comply wllh Regu￿ti)n 8 of Ihe 2006 Accounts Regulatyjis have nrA been met cy 2. to whlch, In my opriknn, attanlbn sh￿k1 be drawn kn ordar to enatrA8 a propor undar8tandlng cl the accounts to react￿. Name.. profess￿nal Qualfftatbn.. Aldress.. Signature: Dale.. SCOTnsH EPISCOPAL CHURCH DIOCESE OF ABERDEEN AND ORKNEY ST JAMES THE LESS CRUDEN BAY SC013851 STATEMENT OF RECEIPTS AND PAYMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2024 2023 RECEIPTS t)onatb) Grants Rent 12.403 654 19,SJ3 219 469 Investsnenl InG0￿ 0th8r Inccmè 594 742 RECEIPTS FROM ASSEf &4LES & INVESTMENT8 Proc88ds from Salg of Inv881m8nts Dlvbjends from Investm￿ts 123,418 141,787 137515 153924 TOTAL RECEIPTS 176600 PAYMENTS Cjgrgy Cost Propety Expon8e8 Church ExporKNeJ mlnlslr81fv• Expgnsos Quola Excgplbnal Items L8gg¢y ExFondrture Grant Clptm Expendtture Investment Management Costs 13.9T6 12,668 14,071 1,111 4,771 3.738 734 10 5,377 1.846 18.888 554 12 40,402 219 13 PAYMENTS RELATING TO ASSEfs & INVEsfMEMTS Purcha8e of Invastm8nts TOTAL PAYMENTS SURPLUSI(DEFICln FOR YEAR- UNREsfRICTED FUNDS ￿136 35 SCrnH EPISCOPAL CfrLIF CIOCESE OF ABERDEEN AND OFIKNEY ST JAMES THE LU8 CRUDEN 8AY aC0138SI STATEPIEKf OF BALANCESASAT XI IIEPTEMBER 2024 2024 CASH FUNDS ope￿￿9 Cash d Bonk li Hor¥J Surpbjs I (Ddtk) from Statsment rl PaY￿￿S Cb8ThJ Cash at8ar&k and kn H￿d 28.481 63,ni 28 481 Con•lstlng of: Vk9kn Kknnoy ewkn Dolphkn DryKBI 7,854 21,e66 0,818 28 481 INVESTMENTS Opanlno Mark8tva Mo¥ery*nls 12,0&fj 526,&20 30,117 ReBIBed and Unrgoljffll l (LOB￿) TOTAL UNRESTRICTED FUND8 Approv•d by th• Trust•￿ and 419n•d on th•lr b•hth by: SCOTnsH EPISCOPAL C*ILRC>I tXO(ESE OF ABERDEEN AND ORKhEY ST JAMES THE LESS CRUDEN BAY SC013851 ANALYSIS OF RECEipfs FOR YEAR ENDED 30 SEPTEIBER 2024 2024 2023 DONATIONS Gener81 Cthtk Frethvl Off8rw¥Js {Envgk)pgsISO) GIft￿l Donb 8.388 1,993 8,742 9,377 400 2 GRANTS Grant Ir￿orn9 219 654 219 2 RENT Use of Church 3 INVESTMENT INCOME Bank Intor08t Unk Tru8t8 192 594 550 742 4 OTHER INCOME Renfwab* Heat I￿( TOTAL 17 SCOTfisH EPISCOPAL CHLRCH DIOCESE OF ABERDEEN AND ORKNEY ST JAMES THE L&8S CRUDEN BAY SC013851 ANALYSIS OF PAYIAENTS FOR YEAR ENDED 311 SEPT￿BEft 2024 2023 CLERGY COST St¥)8r P9nskn contr￿1 Trav•Vmlb8y 9,970 3.091 915 9.116 712 7 PROPERTY EXPENSES In$uranc¢ Premlums.. Church 1,833 2.372 Church 592 Rocttry 385 83 Electrbty Water Ratè8 5,447 11181 929 9.136 326 Councd Tax B CHURCH E¥FENSES Organi81 Organ mantenanc MUS￿ and ch(xr har exFens•s 87 471 Donatk)n3 Other 734 SCOTnsH EPISCOPAL CHURCH DIOCESE OF ABERDEEN AND ORKNEY ST JAMES THE L&8S CRUDEN BAY SC013851 ANALYSIS OF PAYMENTS FOR YEAR ENDED 30 SEPTEMBER 2024 2024 2023 9 ADMINISTRATIVE WENSES Sgcretarvl costs Pr￿11￿79 & $latKN T9￿h1)ne & Intgnot IT & Sofvare 3,015 856 141 countancy Fo05 532 359 10 QUOTA 11 EXCEPTIONAL ITEMS Church Wmdow Pahtr Quinquennkgl Survoy Off￿e Door Row￿￿tr￿n0t 1,800 12 LEGACY EXPENDITURE Church Entr8nce & Path Upgrad Wosh Atrea Renovatbn 11,736 6,382 770 Fthr Coverlngs Intsrnal Oo Toug1 Area Upwr•de Mkrowave & Dlshwa8h8r 20,885 19,088 13 GRANT ExPEND￿uRE Communty Café 5S4 219 554 319 scornsH EPISCOPAL CHURCH DIOCESE OF ABERDEEN AND ORKNEY sr JAMES THE LESS CRUDEN BAY APPENDIX- DEfAILS OF RINGFENCED INCOME FOR YEAR ENDED 30 SEvfEMBER 2024 A LEGACY INCOME May 2018- Mama Cru￿kShank Aug 2019- Ajfred Logan 76,729 LEGACY EXPENDITURE Apr - Aug 2022 - Church Entrance (Part 1) Feb 2023 - Intemal Doors ￿chrte¢ft Fees Jul- Aug 2023- Tolet ￿ea Upgrade Jul- Sep 2023- Intemal Doors Aug 2023- Microwave & Dishwasher Oct 2023- Wash Up Nroa Renovat# Dec 2023- Fknr Covaryws Jan 2024- Entrance & Path UpJades (19,762) 11,258) {19,068) (19.828) (449) (6.382) (770) RINGFENCED LEGACY INCOME REMAINING B GRANT INCOME Oct 20Z3 . R￿0Very Ren*￿1 Pr Jan 2024 - Recovery and Renowal Project May 2024 - Recovery and Renewd Project Sop 2024- Recovery arKI Renewal Propct 151 129 108 266 654 GRANT EXPENDITURE Oct 2023 - Communlty Jan 2024- Communty Café Apr 2024- Communty Café Sep 2043- Cc#nmunty Calé (151) (129) (108) RINGFENCED GRANT INCOME REMAINING 100 ## **St James the Less** ## **Treasurer’s Report for AGM, 1 Oct 23 to 30 Sep 24** ## 1. Accounts for the year ending 30 Sep 2024 I have reviewed the Accounts with our accountant/independent examiner in depth. We are satisfied that they are a true and accurate summary of our financial situation. Consequently, I recommend the approval of these accounts. The Accounts take into account our investment portfolio whereas my review of finances (below) does not – it is solely based on cash in and out of our bank account. This explains the fact that the Accounts show a surplus whereas my review shows a deficit for the year. 2. Bank Balance and Brewin Dolphin Portfolio Value as of **30-Sep-24** (30-Sep-23) - a. Virgin Current Account Balance: **£7,854** (£21,665) - b. Brewin Dolphin total portfolio value: **£555,892[1]** (£511,108) - i. Cash: **£34,891** (£13,689) - ii. Projected annual income: **£12,970** (13,582) ## 3. Review of Finances Figure 1a shows a bar chart of total income and expenditure for each of the last 12 months. The red line shows that the cumulative deficit between income and expenditure at year end was £13,811. The pie charts in Figure 2a show the main categories of income and expenditure. Total income was £42,332, with £24,600 (58%) coming from RBC Brewin Dolphin. Total expenditure was £56,133, with renovations costing £20,733 (37%) and our contribution to parish costs coming to £20,178 (36%). If we now exclude renovations and look at our regular income and expenditure, we get a slightly different picture. Figure 1b shows a bar chart of regular income and expenditure by month along with the cumulative deficit/surplus. At year end, the cumulative deficit was £3,078, a significant decrease compared to last year. Looking at the pie charts in Figure 2b, we can see that total regular income was £32,332 with free will offerings (stewardship) accounting for 28%, Brewin Dolphin monthly withdrawals giving £14,600 (45%) and OFGEM RHI repayments amounting to £3,306 (10%). HMRC (Gift Aid) provided an additional £1,993 (6%), donations a further £1,415 (4%) and the craft group a not insignificant £469 (2%). Our total regular expenditure was £35,400 made up largely of parish costs of £20,178 (57%), the diocesan quota of £5,377 (15%), electricity costs of £5,448 (15) and insurance of £1,833 (5%). Our electricity costs this year benefitted from overpaying last year. A point to note: - a. Without monthly cash withdrawals from our RBC Brewin Dolphin investment portfolio, we would be spending nearly twice as much as we take in, which may not be sustainable in the long term. At the moment, the investment portfolio is providing sufficient income to cover our deficit without eroding capital. Let’s hope this continues to be the case. Some actions taken: - a. We have increased our monthly withdrawal from RBC Brewin Dolphin from - £800/month to £1,500/month over the course of the year. - b. We withdrew a lump sum of £10,000 from RBC Brewin Dolphin to help pay for renovations. Some actions to take: > 1 Includes Cash and Stock - a. Withdraw a lump sum from the cash account from time to time, say when the value of the portfolio exceeds a certain threshold, to cover any deficit. - b. Increase the size of the congregation (and thereby, hopefully, stewardship) c. Set aside £5,000-10,000 each year to build up a maintenance fund (see below) There are several areas in the church which have been damaged by recent water ingress (east window, office, south-west corner, bell tower/entrance). The first three will hopefully be repaired in the next financial year. We will also look for external funding for repairing the tower and installing more efficient heating in the church. The best investment we can make is to keep the church dry. ## 4. Electricity Our electricity is supplied by SmartestEnergy at a unit rate of 48.5 p/kWh and standing charge of 30.74 p/day on a contract extending to 27 October 2025. The Scottish Episcopal Church has an objective of 95% of charges being on a renewable (green) tariff by 2026. We have been offered a new 3-year contract with SmartestEnergy to supply green energy at a unit rate of 29.08 p/kWh and standing charge of 75.9 p/day. According to Jack Nevin, Net Zero Innovation Coordinator, Scottish Episcopal Church, these rates are some of lowest available and represent a good deal. I have also been looking at the rates offered by ESPO (a public sector owned professional buying organization). They have a 2-year contract at a unit rate of 22.745 p/kWh and a standing charge of 432.2353 p/day. At our annual consumption, despite the lower unit rate, the much higher standing charge means that the overall cost is not as favourable as the SmartestEnergy deal. 5. Brewin Dolphin Investment Portfolio – John Anderson Legacy Figure 3 shows the performance of the portfolio from the start to the end of the financial year. The total value (stock + cash) of the portfolio has increased by £44k (9%) from £511k to £555k despite withdrawing £10k (to help pay for renovations) in December. The diverse spread of investments in equities and bonds in different markets is illustrated in Figure 4. The biggest share of investment is in the North American market. The portfolio has a lowmoderate risk factor of 6. A review (Figure 5) of the portfolio’s overall performance since the initial investment of £628,360 in May 2008 shows that regular monthly payments total £175,400, withdrawals total £334,548, and irregular payments before October 2010 were £31,299. Taken together, these total £541,247. Had we not invested the original sum, we would only have ~£87k left in our bank account. Despite all the above, our portfolio valuation stands at £555,892, attesting to its continuing excellent performance. ## 6. Marna Cruickshank Legacy (£76,729) Marna’s legacy of (£76,729) has now been fully utilised in paying for renovating the toilets, wash-up area and the internal and external entrance areas. These renovations were completed during the financial year under the aegis of Gerry Ross. We hope that Marna would be pleased with the result. The legacy was spent as follows: External doors/windows - £19,762 (as reported in last year’s accounts) Toilet area upgrade - £19,628 (£4,028 + £15,600 (inc. £510 discount)) Internal doors - £19,068 (£4,068 + £15,000 (inc. £1,270 discount)) Architect fees - £1,257 Dishwasher & microwave - £449 Wash-up area - £6,382 Entrance and path - £10,050 + £1686 Floor coverings - £770 **TOTAL - £79,501** ## 7. Summary We are still living beyond our means so must continue to monitor and challenge future expenses. But our investment portfolio is currently providing sufficient income to cover the deficit without eroding capital. ## Brewin-Dolphin Investment Portfolio Performance ## Figure 5 ## • Initial investment (7 May 08) - Monthly payments* - Withdrawals - Irregular withdrawals (pre-Oct10) - Total** £175,400 £334,548 31,299 £541,247 ## £628,360 £87,113 (with no investment) ## • Objectives - Grow capital to maintain value while funding annual expenses - Generate income > cash deposits - Risk level 6 - moderate - Value (as of 30 Sep 24) £555,488 * 1500/mth Aug24-Sep24; 1200/mth Nov23-Jul24; 800/mth Jun21-Oct23; £1200/mth Oct10-May21 ** Excludes management fees and transaction costs Figure la Total Incomevs Expenditure l Oct2023- 30 Sep 24 £16.CrfJO -£13,811 £(13,￿0) o) £14(￿10 £11￿0 £iii,(x)o) £10,￿0 £19,0(KJ) £8,0 q7.0(X)) £6,000 £15,0(K)) £4,000 £13.0￿) £2,000 £1 I,o(x)) £l.O(K) If￿orne ￿ ExperKliture +Curn. Deficit/Surpius Total gap between income and KpenditL.i- in the year ending 30-Sep-24 gives a deficit= £13,811 Figure 2a £1,993.5% £594, 1% Income by Category IOct23-30Sep24 Total Income £42,332 £654, 296 £296. 1% £1.415.3% £469.1 £8.995 21q6 Brewin Dolphin £3.30 8% 11 OFGEM Craft Gr(wp Donati￿5 Expenditure by category IOct23-30Sep24 £554. 19b £2,010. 4% D¢J4 PAR Grant £24.600. 5896 Scottish Episcopal Total Expenditure £56,133 • HMRC • Other •StMary •Diwe5an(Jota £20.178 36% Electricity £20.733 3796 InSUra￿e Rencwatior •Other £5.448 io% Communlty Café £5.377. 9% £1.833. 396 Figure Ib Regular Incomevs Expenditure l Oct 2023- 30 Sep 24 £6.0(M) -£3078 Q) £5,OCK) q3.OCXI) ql.8(X)) o E £2,OlX) g1.2￿) qfA)O) Income ￿ ExperNliture * Cum. Deficit Total gap between regular income and penditL in the year ending 30-Sep-23 gives a deficit-_£3078 Figure 2b £1.993,696 Income by category IOct23-30Sep24 Total Regular Income £32,332 £594. 2% £296. 1% £654, 2% £1.415.496 £469.2 Brewln DO1￿1n £8.995 28% • OFGEM £3.306 io •CraftGrcwp D¢￿ati￿S Grant Expenditure by category IOct23-30Sep24 £554,2% Sccrttlsh Eplscopal Total Regular Expenditure £35,400 •HM £14.600 £2.010.6% £1.833. 596 Other •StMary Di(xesan Quota £5,448 1596 Eiectrlclty £20.178 57% Insurarte .377, Other Other: Rev. Walker Presley Pest Control Church supplies Scottishwater Business Communltycafé PDPTFni nvFFNIEW l Oct 2023 to 30 Sep 2024 Figure 3 Portt01￿ value 15.44% S55,(*NJ.ts) TOTALVALUE sso.c•M. 555,892.39 GBP S45.￿1.￿) s40.¢￿. $35,(m.ts) £555,488 £511,082 ESTIMATED ANNUAL INCOME S25.￿0. 11969.92 GBP 520,Cth).ty) 510JXI).IXI 505JM. -£10,000 495,C•XI. Value increased by £44,406 through tax year Pc￿Fou0 VAWE 6January 2025 Figure 4 POR TFOLIO OVERVIEPI LAST 12 PERFORMANCE 12.47% 311 TOTAL VALUE TOTAL 557.423.24 GBP 11.752.85 GBP 557,423.24 GBP 6.49% 8_71% OVn4ER(S) Sainl James Church Cwden Bay 16. Inveslment Portfolio INVESTMEKf OBJECTIVE MANAGEMEKfTYPE Income and Caprtal Growth Discretionary UKEQIrn 93.D9164 GBP RISK PROFILE 179.W 61 GBP Risk Level 6 • ¢LSH 48547 34 GOP 53 2D5 ￿ GBP IW.52 GBP 35011.59 GBP MY ACCOIMTS Show n￿)re details - ACC£￿￿1 Totsl Cash T(rtal Sl¢xJE Trfal value Tolal IEKome SAINT0024 48,547.34 GBP 508,875.90 GBP 557,423.24 GBP 11.752 85 GBP 4&547.34 GBP SW875.9DGBP 557.423.24 GBP 11.75185 GBP