The Church of Scotland General Trustees SC014574 Annual Report and Financial Statements For year ended 31 December 2025 THE CHURCH OF SCOTLAND GENERAL TRUSTEES Annual Report and Financial statements for the year ended 3 1 December 2025 Contents Page Trustees, An nual Report Objectives and Activities Achievement5 and Performance Investment Policy and Performance Financial Review Future Plans Risk Management Structure, Governance and Management List of General Trustees & Advisory Members Reference and 8dmin istrative Details 12 15 16 19 23 24 Statement of Trustees, Responsibilities 25 Independent Auditor'5 Report to the Trustees 26 Consolidated Statement of Financial Activities 30 Charity Statement of Financial Activities 31 Balance Sheets 32 Statement of Ca5hflows 33 Note5 to the Financial Statements 34 THE CHURCH OF SCOTLAND GENERAL TRUSTEES Trustee5' An nual Report for the year ended 31 December 2025 Obiectives and Activities "The GenerGI Trustees support congreg(Jtions and Pre5byterie5 in mtjintaining and developing oppropriate flexible, robust and 5LlStoin(Jble facilities capable of supporting locol mission and worship. Mi55ion Statement Article111 of the Articles Declaratory of the Constitution of the Church of Scotland in Matters SpiritLJal says.. 'A5 a nationol Church representotive of the Christian f￿1th of the Scottlsh people it ocknowledges its distinctive call ond duty to bring the ordinances Df religion to the people in every Parish of Scotland through u territoriol ministry" The Church of Scotland General Trustees is a registered Scottish charity ISC0145741. Ob"ectives Interpreting this declaration in modern terms 35 a dLJty and a desire for a Christian presence in everv community, the General Trustees, as a part of the national administration of the Church, aim to give practical effect to th is by.. supporting parish ministry in it5 various forms,. and as51Stingcongregations in the provision of suitable buildings for each parish. Their trust purpose is to administer stipend endowments and any heritable assets such as land, chu rches, ha115 and manses and any moveable assets such as investments derived theref rom for such ends, uses and purposes as the General Assembly lor any body to which its powers are delegated) may direct. The five key Strategic Objectives defined by the Board are= Support the effective care and maintenance, refurbishment and, where appropriate, redevelopment of churches, halls and manses etc. Disposal of surplus, redundant buildings Management and disposal of Glebe land Administration of Investment of Funds Held by the General Trustees Support congregations Wlth their duty to comply with statutory requirements More detail on how these objectives will bo achieved in the short and medium term can be found in the section entitled 'Future Plans" THE CHURCH OF SCOTLAND GENERAL TRUSTEES Trustees, An nual Report for the year ended 3 1 December 2025 Ob'ectives and Activities Icontinuedl Princi al Activities The General Trustees, principal activities are the support of parish ministry and Support of congregations in the provision of buildings which are fit-for-purpose and in the right location. In doing so, the Trustees adm inister a sign if icant level of funds which are applied towards the achievement of their trust pu rpose and charitable objectives. Funds Su ortin Parish Ministr Glebeland Funds In th￿S Fund, the Trustees hold Blebe1and for the benofit of individu31 con8res3tions. Rental income net of maintenance and support costs 15 tran5ferrod to the Faith Actlon Programme Leadership Team IFAPLTI (part of th e Unincorporated Entities of the Church of Scotland, Supporting the recruitment, education, training and ongoing development of ministers, deacons, readers and anyone else who is confident and eager to share their faithl to be applied as a contribution to each congregation's ministry costs. Funds arising f rom the sale of glebeland are transferred to the Consolidated Stipend Fund with the capital being hold for the benef it of that congregation. Con501idated Stipend Fund The Trustees administer the Fund for the benefit of congregations. The investments com prising the Fund are largelyderivod from the sale of glebeland since 1925, An agreed amount is distributed th rough the Faith Action Programme Leadersh ip Team each year, to help the individual congregations meet their parish ministry cost5. The Trustees are empowered to augment what would otherwise be distributed from capital sales. Changes to the Investment Policy and the level of distributions from the Fund were agreed by the Trustees following consultation with the Faith Action Progra mme Leadership Team. These changes were implemented in 2025 and are described in the sections entitled 'lnve5tment Policy" On the recommendation of the Presbytery and with the concurrence of the Faith Action Programme Leadership Team, General Assembly Regulations provide for the possibility of surplus capital in the Consolidated Stipend Fund being transferred to the Consolidated Fabric Fund. THE CHURCH OF 5COTL4ND GENERAL TRUSTEES Trustees, Annual Report for the year ended 31 Decem ber 2025 Obiectives and Activities {continuedl Funds Asslstin Con re ations in the Provision of Sultable Bulldln Con501idated Fabric Fund In this Fund, the Trustees hold the heritable properties occupied by congregations which are vested in the Trustees as legal owners. These propertie5 principally comprise churches, ha Ils and manses. Local congregations are responsible for the repair, maintenance and insurance of the buildings they occupy and for the health and safety of all those who use them. The Fu nd also comprises investments derived from the past sale of properties that are held for the benefit of individ ual congregations. Subject to various safeguards and approvals, both capital and accrued revenue may be withdrawn to meet a wide range of buildings-related expenditure incurred bythe congregation5 on churches, halls and manses to enable them to maintain, repair and improve these buildings. On the recommendation of the Presbytery and with the concurrence of the Faith Action Programme Leadership Team, General Assembly Regulations provide for the p055ibility of surplus capital in the Consolidated Fabric Fund being transferred to the Consolidated Stipend Fund. The General Assembly of 2024 approved the following changes to the regulations governing withdrawals from capital and revenue funds.. Whilst the primary use of funds held is for fabric and fabric-related purpose5, the General Trustees, at their sole discretion, may a150 consider the release of capital for non-fabric projects with due consideration given to 111 the level of capital balances held,121 what capital m ay be required to be Set against future work5 to reta ined build ings,131 whether there are up to date five-yearly reports available pertaining to retained buildings and 141 the purposes of the non- fabric project. Release of capital for non-fabric projects wil I requ i re the prior approval of Presbytery. Release of revenue funds can be requested directly to the General Trustoes (subject to a limit imposed at the discretion of the General Tru5teesl and revenue funds can also be applied against utility costs Ichurch and Hall buildings only) and insurance premiums pertaining to the buildings in a congregation's charge. In additlDn, revenue funds can be utilised for non-fabric purposes where such purposes meet the criteria for the Five Marks of Mission, and this applies to any balance held in the Revenue Account. Temporary Capital Funds within the Consolidated Fa bric Fund are derived from the sales of redundant properties. These funds are normally transferred to investments within the Consolidated Fabric Fund once the transactions are complete. THE CHURCH OF SCOTLAND GENERAL TRUSTEES Tru5tees' Annual Report for the year ended 3 1 December 2025 Ob"ective5 and Activities Icontinuedl Funds Assistin Con re ation5 in the Provision of Suitable Buildin£5 Icontinuedl Individual Funds Individual Funds are derived from historical donations, bequests and legacie5, as well as the sale of redundant properties and where the main purpose of the proceeds was for Christian mi55ion rather than forthe repair or improvement of buildings. Release of accrued revenue and capital 15 subject to various approvals from Congregations and Presbyteries, and the conditions attached to each f und. Central Fabric Fund This Fund 15 the main resource wh ich enables the Trustees to provide financial as51Stance in the form of grants and loansto congregationsfor repairin£ and improvingthe buildingswhich they use as local resources for Christian mission. Before grants are awarded from the Central Fabric Fu nd, the Trustees W￿11 consider the1evel of funds held locally by the congregation and by the General Trustees in the Consolidated Fabric Fund, which may be put towards these PLJrposes ahead of a grant. Before loan5 are offered, the Trustees will scrutinise relevant financial information to ensure that congregation has the financial ability to repay the capital and interest of any loan which might be offered to it. In accordance with a deliverance approved at the General Assembly of 2023, Presbyiery-based sub- funds of the Contral Fabric Fund have been created to ring-fence 50'A of the t)et funds received from dissolved congregations to provide grants to other congregations in that same Presbytery. In addition to making grants and loans to congregations, a deliverance approved at the General Assembly of 2024 stated that the Central Fabric Fund shall be used by the General Tru5teos 'in other appropriate circumstances as determined by the General Trustees, including meeting the cost, wholly or partially, of employing Presbytery Buildings Officers" Funds Su ortin the Work of the Trustees General Fund The General Fu nd, which is unrestrirted, is used to meet expenses incurred by the Trustees in the administration of their busines5, the main items being staff salaries and administration costs rechar8ed from the Assem bly Trustees who provide those services for the Trustees. These service5 are delivered by departments within the Unincorporatod Entities. The Fund received payments under Gift Aid from the Church of Scotland Insurance Services Ltd, the subsidiary company- following the transfer of the client base to Howden in 2025, the final Gift Aid payment will be receivable in 2026. THE CHURCH OF SCOTLAND GENERAL TRUSTEES Trustee5' Annual Report for the year ended 31 December 2025 Ob"ectives and Artivities Icontinuedl Funds SuDDprtino th_e Work of the Trustees {continuedl General Fund Icontinuedl The fund covers general expenditure incurred in the running of the charity, as well as subsidising certain costs and shortfalls with in restricted fu nd5. Church of Scotland Insurance Services Limited ICOSISI The Church of Scotland Insurance Service5 Limited I'the Company") is a limited company incorporated and domiciled in Scotland with registered company number SC001777. The Company is a wholly owned subsidiary of the General Trustees a nd, as such, its assets, liabilities and results for the year are consolidated with those of the General Trustees. In 2024, the Board of COSIS concluded that its brokerage activities should be transforred to a national broker,. this transfer took place in late 2025. A by-product of this transaction will be that Gift Aided profit5 will no longer flow to the Trustees after 2026. A portfolio of investments valued at around £5.2m was transferred to the General Trustees duringthe year, and it 15 intended that the company will be wound up overthe course of 2026. Historic Property Portfolio Fund The Trustee5 have agreed to assume administrative responsibility for certain substantial historic listed buildings that are not capa blo of being d isposed of when congregations are formally dissolved. These will be held in thi5 designated Fund. Only one building is now held in the Fund and no others are foreseen at this time. The Fund benefits from the heritable and moveable assets of congregations that aro dissolved where the buildings involved present the challenges outlined above. The Fund rllonies are applied towards the costs of keeping such bu ildings in 8ood order until such time as a satisfactory outcome 15 achieved either by outright di5P05al or the liabilities of ownership are no longer the sole responsibility of the General Trustees. Achievements and Performance Legislative Chan8e A major piece of work approved by the 2024 General Assembly has now become Church law in the guise of the General TrLJStees (Properties, Funds & Endowments) Act 2024 las amended) and this major piece of legislation provides a 'one-stop shop" for all Assembly legislation as it pertains to the work of the Trustees. Amendment5 to the Act were approved by the 2025 General Assembly and work is either underway or completed to update online resources and 8uidance SQ that those resources dove-tail with Assembly legislation. This work includes an updatin8 of the General Trustees section of the Church webslte. THE CHURCH OF SCOTLAND GENERAL TRUSTEES Tru5tees' AnnLJal Report for the year ended 31 December 2025 Achievements and Performance (continued) Legislative Change Icontinuedl It is likely that, within the next two years, the Scottish Parliament will be potitioned to amend the Trustees, founding Act, the Church of Scotland (General Trustees) Order Confirmation Act 1921, so as to allow ordinary Church members to become Trustees (currently only Ministers and Elders can become Trustees) and to widen the base of senior Church staff officers who are perm itted to sign deeds on behalf of the General Trustees (currently only the Chief Executive & Clerk and the General Treasurer can do 50, alDn¥ with a Trusteel. Presbytery Mission Plans, Annual Reviews and the Disposal of Buildings The Trustees and their staff have continued to work alongside members of the Faith Action Programme Leadership Team and other committees involved in the Presbytery Planning process in the consideration of Presbytery Mission Plans. All Plans are now approved and in the implementation stage and, indeed, a number of Presbyteries have submitted draft annually updated Plans for consultation with both the General Trustees and Faith Action. The staff of the Trustees and of the Law Department continue to deal with an increasing number of disposals of buildings arising from the planning proce55 including the sale of surplus manses. Manse Condition Report5 and M3nse Provision In May 2023, the General Assembly approved proposals from the Trustee5 aimed at ensuring manses meet the same minimum standards as other privately rented properties in Scotland. The responsibility of congregations and presbyteries was restated as was the requirement for them to provide condition reports including energy performance certificates. The Manse Working Group continues to tackle these matters and, as a result of Presbytery M ission Plans, the Trustees have noted that the number, location and SLA￿tabilitY of manses are being roviewed by congregation5. This is resulting in houses that are no lon8er required as mansos boing sold, upgrade work5 being undertaken to rll anses that are to be retained or replacement manses being purchased. The Trustees envisage that this will continue forthe duration of the current Presbytery Mission Plans. Signature Churche5 The Trustees have set up the Signature Churches working group to consider how best to assist congregation5 Wlth large iconic churches that do not have the financial resources or range of skills to deal with their upkeep. Contact has also been made with other bodies to exchange good practice with one another and to provide guidance on grant funding. THE CHURCH OF SCOTLAND GENERAL TRUSTEES Trustee5' Ann ual Report for the year ended 3 1 December 2025 Achievements and Performance Icontinuedl Pathway to Net Zero Staff of the Trustees are directly involved in the Church's Net Zero working group that is developing a 'Pathway to Net Zero" and an 'Environmental Footprint Tool" Further work on th is has taken place and close collaboration has been established with colleagues in the Faith Action Programme Leadership Team. It is expected that this work will continue to evolve and the Head of Buildings & Projects ha5 contributed to a policy pa per on the subject. Consolidated Stipend Fund Following consideration of an external review of the Trustees, investment policy, the Trustees decided to change their approach to the investment of this Fund. They held discussions with the Church of Scotland Investors Trust ICOSITI, the Fa ith Action Program me Leadership Tearn and other parties. As COSIT was unable to accommodate the new approach within its range of funds, the Fund'5 holding in the COSIT Growth Fund wa5 transferred in 2025 to be invested in an arrangement managed by Mercer as described in the section entitled 'lnvestment Policy" Church of Scotland Insurance Services Limited ICOSISI As referred to earlier, the Board of COSIS concluded that its b rokerage activities should bo transferred to a national broker. The transfer was successfully completed in November 2025. Executive Team and Recruitment The workload of the staff of the General Trustees has continued to increase due to the volume of buildings being evaluated, the level of a551Stance and advice given to congregations and in dealing with d i5POsals. Two Presbytery Buildin65 Officers were appointed for the Presbyteries of the ClydE and CIEir EilEan I, bringing the number of Presbytery Buildings Officers in place to nine. These appointments have contributed to the ability of the staff to deal with the increased workload describod a bove. There is also a much stronger erllph asis on financial assistance, with the Fabric Comm ittee overseeing the dispersal of sign ificant grant funding, following a period of rolative stagnation in thi5 area so as to allow Presbytery Plans to be finali5ed. THE CHURCH OF SCOTLAND GENERAL TRUSTEES Trustees, Annual Report for the year ended 310ecember 2025 Investment Policv and Performance Investment Policy The General Trustees currently invest with three Investment Managers. A portion of the General Fund investments are held with Cazenove,. the Consolidated Stipend Fund investments are held with Mercer,. and all other investments are held in the Deposit, Growth and Income Funds of the Church of Scotland Investors Trust ICOSITI. Although they obtain the benefits of professional management, continuou5 portfolio supervision, spread of investment risk and economie5 of scale, decisions as to the appropriate investment mix a5 between the three Investment Managers, and the three COSIT Funds, are the re5pon5ibility of the General Trustees. Asset al location strategies for the Central Fabric Fund and the General Fund are monitored quarterly to ensure that they remain consistent with their objectives. The Trustees regularly seek external investment advice regarding the asset a Ilocation of the Funds for which they are responsible. During 2025, the General Trustees asked for the advice to be updated to reflect the changes in income and capital p051tions of the Central Fabric Fund and General Fund since the previous review in 2022 as well a5 the forecast outcomes for each Fund over the coming years. As a result, there will be some f urther adjustment5 in a55et mix which are to be implemented in 2026, Consolidated Fabric Fund investment strategy The scope of the latest review exercise also included a review of the asset mix of the Consolidated Fabric Fund. This followed clarification received by the General Trustees that it is they, and not individual Kirk Sessions, who are responsible for the management of the Consolidated Fabric Fund, including the investrrent strategy. Following this review, a nu mber of change5 were recommended and these are described in more detail under the section 'Futu re Plans" Con501idated Stipend Fund investment strategy As agreed with the Fa ith Action Programme Leadership Team IFAPLTI and adopted and re-affirmed by the General Assembly on a number of occasions, the most recent being in 2016, the Consolidated Stipend Fund is regarded internally as a permanent endowment for investment strategy purposes and invested for the very long term but it is not treated as an endowment fund within these financial Statements. As reported last yea r, the Trustees decided to take a different approach to the investment of the Fund based on the recommendations of the external Investment Policy Review. The transfer of the fu nd to an investment vehicle provided by Mercer'5 Implemented Consulting Services WOLJld provide enhanced diversification of assets, select managers suited to each investment segment and monitor ethical investment practices relating to environmental, social, and governance issues. The transfer of funds to Mercer was completed in three tranches in September, October and November 2025. THE CHURCH OF SCOTLAND GENERAL TRUSTEES Trustees, Annual Report for the year ended 31 December 2025 Investment Policv and Performance Icontinuedl Consolidated Stipend Fund investment strategy Icontinuedl The investment objective of the Fund is to maximise the long-term capital value of the Fund while providing regular distributions to FAPLT for the benefit of con8regation5' ministry costs from income received or from the sale proceeds of capital. Under the new arrangements with Mercer, the Trustees have set a more specific investment return objective for the Fund of CPl+4% pa. As a result, the Trustees decided to increase the yearly d istributions to FAPLT from a level amount of £3.2m in recent years to £4m in 2025 thereafter increasin£ in line with inflation until at least 2029. In 2023 the Trustees approved the investment of up to £3.2m of the fund in a loan facility for CrossReach, the direct social care service of tho Church of Scotland Unincorporated Entitie5. The Assembly Trustees have provided the Trustees with an indemnity in the event of default by CrossReach. At 31 December 2025, £3. Im of the loan facility had been d rawn down. Investment performance - Church of Scotland Investors Trust As at 31 December 2025, £ 156m funds were invested with Chu rch of Scotland Investor5 TrLJSt ICOSITI. The Investors Trust has an ethica l investment policy,. investment is avoided in 5hare5 in any company substantia Ily involved Igenerating more than IOY. (previously 15'AI of turnover) in gambling, tobacco products (including vaping), recreational cannabis, alcohol, armaments, thermal coal and tar sands and other activitie5 which are felt to harm society more than they benefit it. In general, investment is sought in companies that demonstrate responsible employment and good corporate governance practices, have regard to environmental performance Iparticularly Climate Changel, acknowledge the importance of human rights and act with sensitivity to the com munities in which they operate. The Growth Fund is intended to provide capital growth over the longer term, with a portfolio split 70.'30 between equities and credit. The Income Fund continues to be invested in a pooled fund, and is intended to provide consistent high income and to protect the nominal value of capital in the medium-long term. The Deposit Fund is intended for 5hort-term investment, ideally no longer than 18 months, and seeks to provide a competitive rate of interest whi15t spreading risk and preserving nominal capital value, The COSIT Trustees set internal benchmarks for the Growth Fund that take account of ethical constraint5, and these are used to assess the investment performance of the Fund Manager. A change of investment managers duringthe year makes comparisons against benchmark difficult. However, it is felt by COSIT that the moderate underperformance by the former investment managers will recover. under the new investment managers. Over the year to 31 December 2025 the unit price value increased from £6.38 to £6.88. The Income Fund's total investment return was +8.97Yo12024: +6.810AI compared with the corn posite benchmark return of +6.90'A12024.. +1.710/01. The Fund has con51Stently outperformed its bench mark over every period since the appointment of the managers in February 2012. The Deposit Fund's average rate of interest paid for 2025 was +4.23%12024.. +5.09%). 10 THE CHURCH OF SCOTLAND GENERAL TRUSTEES Trustee5' Annual Report for the year ended 3 1 December 2025 Investment Policv and Performance (continued) Investment performance- Mercer As at 31 December 2025, £125m funds were invested with Mercer. For the assets of the Consolidated Stipend Fund that are invested in Mercer Funds, the General Trustees have delegated management of each of the Mercer Fund's to a Mercer affiliate, namely Mercer Global Investments Europe Limited IMGIEI. The Mercer affiliate is responsible for the appointment and monitoring of a suitably diversified portfolio of specialist third party investment managers forthe assets of each Mercer Fund. Mercer and MGIE prioritize integration and stewardship, under belief that an engagement and escalation approach drives POSltive change as opposed to losing influence via divestment, but may exclude certain investments based on Mercer's Exclusion5 Frameworks, where sectors/activitie5 are irresponsible. Controversial weapons and civilian firearms are excluded f rom all multi-client funds, while tobacco and nuclear weapons are excluded from active equity and fixed income funds. Additional bespoke exclusions also apply on some of Mercer's Fund range lin which the Consolidated Stipend Fund invest in where possible) and also encompass additional exclusions on alcohol, gambling and adult entertainment. Additional exclusions are detailed in fund disclosures on Mercer's website. In addition, Morcer and MGIE monitor funds for high-severity incidences relating to the UN Global Compact IUNGCI Principle5 that relate to hLJman rights, labour, environmental and corruption issues. Since inception with Mercer to 31 December 2025, the Consolidated Stiped Fund achieved a signif icant excess return above it's target of CPI + 40hp.a. The overall gross return for the Fund was 5.8Yo, versus the target of 1.8/0 over the period. Investment performance- Cazenove As at 31 December 2025, £5.7m funds were invested with Cazenove. The Cazenove portfolio is SLJbject to exclusions on equities and bonds generating more that. IO/n of revenue in alcohol, armaments, f055il fuels, gambling, predatory lending and tobacco. It excludes equities and bonds generating more than 3/0 of revenue in adult entertainmont, and all equities and bonds included on Schroders, breach list of companieswithout good governance, companies creating principle adverse impacts beyond certain thresholds, and companies flagged for violating the UN Global Compact Principles. The Cazenove portfolio was transferred from COSIS in August 2025, and is largely equity-based, with some holdings in bonds, alternatives and cash. Net return on the portfolio for the year to 31 December 2025 was +7.9/0. THE CHURCH OF SCOTLAND GENERAL TRUSTEE5 TrLJStees' Ann ual Report for the year ended 31 December 2025 Financial Review Total Funds The financial statements as of 31 December 2025 shaw that the General Trustees have total funds of £861m12024.. £858ml. Of this total for the charity, £547m12024.' £564ml is represented by the value of land and property assets as shown in note 12 and £289m12024.' £258ml is represented by the value of investment assets to date. Unrestricted Funds Of the total funds of £861m only £18.6rn 12024= £12.2ml are unrestricted and unde5ignated, the majority of the fund5 being h elLI in restricted fund5 for the benefit of in dividual congregations. Within unrestricted, undesignated funds, £O.Im represents tangible fixed assets. These are not readily available to Spend and so this leaves £18.5m as the free reserves as at 310ecember 2025. There are risks relating both to income and expenditure within the funds-. there is annual expenditure on the General Fund of around £2.6m12024'. £2.2ml with annual ordinary recurring income, excluding income from the Insurance Company which will cease in 2026, of £0.6m12024: £0.8ml- major essential maintenance costs or underinsured damage to buildings which cannot be met by the congregation £oncerned cou Id become a liability of the General Trustees to be met from this reserve and while such instances are not common when they do arise the sum5 can be verv significant- and the General Trustees have contingent liabilities as disclosed in note 27 to the financial statements wh ich, if they a roso, would 5igr)ificantly reduce unrestricted reserves. During 2025 the unrostricted General Funds of the General Trustee5 subsidised the work of the designated and restricted fund5, covering costs of £89k12024.' £1.5ml. Given the potential scale of the call on reserves arising from these risk categories, it is the policy of the General Trustees to hold approximately four years of annual expenditure in these reserves that amounts to around £ 10.4m. The General Trustees currently retain £18.5m within these free reserves, representing just over five and half years of annual expenditure. In light of the reduction in income from the insurance company, the Trustees consider this appropriate and they will be reviewing the reserves policy durin8 the cou r5e of 2026. 12 THE CHURCH OF SCOTLAND GENERAL TRUSTEES Trustee5' Annual Report for the year ended 3 1 December 2025 Financial Review Icontinuedl Designated Funds In addition to the General Trustees, own reserves, the consolidated financial statements show reserves in a Designated Fund of £3.Im 12024.. £7.8ml at the Balance Sheet date of which £3.04m 12024.. £7.7ml represents the net 35sets of the Insurance Company. The Insurance Company transferred its activities to national Broker. HDwden, in November 2025 and it is intended that the company will be wound up over the cou r5e of 2026. An investment portfolio valued at around £5.2m was transferred from the Insurance Company to the General Trustees during the year, contributing the decrease in fund value as at 31 December 2025. Also included within Designated Funds is £41k12024.. £75kl in respect of the Historic Property Fund. This Fund was established as a designated fund to receive the heritable and moveable assets of congregations which have been d i5501ved and where the bu i Idings involved present challenges in beingdisposed of. The Fund monies are applied towards the costs of keepingthe building5 in good order until such time as a satisfactory outcomo is achieved either by outright disposal or the liabilities of ownership are no longer the sole responsibilityof the General Trustees. Restricted Funds There are restricted reserve5 of £835m12024= £834ml as at 31 December 2025, comprising £158m 12024.. £149ml of funds to support parish ministry and £676m12024'. £685ml of Fabric and other Funds which Includes £29m and £518m respectively of capitalised land and properties. As explained on page 3, the Consolidated Stipend Fund is held for the benefit of congregation5, and the distribution5 from the Fund are applied against the congregation's m ini5try costs. Fabric Funds are made up of.. 11 heritable properties capitalised in the accounts which total £514m; 21 monies held for the benefit of specific congregations totalling £135m' and 31 the Central Fabric Fund of £23.6m. In the case of121 the monies are held for the benefit of approximately 718 congregations and, subject to the relevant approvals by Presbyterie5 and the General Trustees, both ca pital and revenue bala nces may be withdrawn a5 permitted under the General Trustee5 (Properties, Funds ar)d Endowments) Act 2024 la5 amended) as described earlier. The timing of these withdrawals is outwith the control of the General Trustees. Sincejuly 2003 new capital holdings have been initially individually invested in the Deposit Fund of the Investors Trust u ntil the congregation advises the Trustees as to their requested investment strategy,. changes to thi5 investment strategy for the Con501idated Fabric Fund are detailed under 'Future Plans" 13 THE CHURCH OF SCOTLAND GENERAL TRUSTEES Trustees, Annual Report for the year ended 31 December 2025 Financial Review Icontinuedl Re5trlcted Funds {continuedl The Centra l Fabric Fund is used to award loans and grants to congregationslsee notes 15, 17 and 25 to the Financial Statements). Grants and loans from the Central Fabric Fund may be applied for by all congregations but all such appl ications fall to be decided by the General Trustee5. Levies on property sales are credited to Revenue and ring-fenced for gra nt assistance. The Fund 15 long term in nature as it is the Trustees, main fund ing support for congregations now, and in the future. It is therefore the policy of the Genera l Trustees to hold around 10 years of annual expernditure lor grants) in reserves. Restricted Revaluation Reserve This represents the unrealised Eain on the revaluation of land and properties sub5eouent to their initia I recogn ition. Review of Financial Activities The Consolidated Statement of Financial Activities discloses the incoming and expended resources for the year to 31 December 2025, and the sUPPOrting notes analy.se these over tho General Trustees, main activities of supporting parish ministry, assisting the provision of suitable buildings and the unrestricted activities of general administration and the Insurance Company. The assets, liabilities and results of the Insurance Compa ny are consolidated with those of the Goneral Trustees, and the format of the financial statements complies with the requirem ents of the Statement of Recommended Practice'charities SORP IFRS 1021" effective l January 2019. The underlying not assets of the Insurance Company at the Balance Sheet date were £3.04m12024.. £7.7ml. A summary of the Insurance Company's results forthe year is shown in Note 14. The overall total income is £26.7m lincluding'donated, assets of £6.2m12024.' £9.2ml- see notes I and 41 which is £2.6m less than 2024 with total expendIt￿re of £54.7m, an increase of £22.5m on the previous year. The increased expenditure in 2025 is driven by the recognition of Erant commitments from the Consolidated Fabric Fund at the point of award; previously this expenditure wa5 riot recognised until paid out. The objective of 5UPPOrting parish ministry was met by expenditu re of £4.4m12024.. £3.6ml providing Faith Action Programme Leadership Team with arou nd 13.6°A12024.' 10%) of its total ministry cost5 forthe yearfrom Stipend Fund income and glebe rents. Including gross capital expenditure, £60.4m has been spent on fabric purposes to assist the provision of sultable buildings for congregational purposes. This expenditure represents a significant investment in the Church's property assets. Of this sum £12, 2m Inote 171 is committed by way of fabric grants and f und5 to congregations. Awarding grants in excess of £2m per annu m is only p055ible if the Central Fabric Fund receives support from other income streams of the General Trustees. The General Fund Surplus for the year was due in great measure to the Insurance Company's contribution to the work of the General Trustees amounting to £6.Im for the year,. being £0.9m Gift Aid and £5. 2m transfer of investments12024: G ift Aid £1. Im). 14 THE CHURCH OF SCOTLAND GENERAL TRUSTEES Tru5tees' Annual Report for the year ended 31 December 2025 Future Plans Presbytery Mission Plans, Annual Reviews and the Disposal of Buildings The Trustees and their Staff will continue to be involved in the approval process for the outstand ing mission plans alongside FAPLT and will then participate in the ann ual reviews. The Chief Executive will liaise with the Law Department to ensure that the rapidly increasing number ofdisposals of churches, manses and glebes can be processed timeously and without an adverse impact on congregational finances or insLJrance cover. Manse Condition Reports and Manse Provision The Trustees will aim to ensure increased compliance with the minimum standards agreed by the General Assembly in May 2023 and report back annually to the General Assembly. Signature Churches Having set up the Signature Churches working grou p to consider how best to a5SlSt congregations with the financial burden of having large iconic chLJrches, collaboration will continue to be taken forward between the Trustees, the congregations and other bodies that may be able to asslst with fabric advice or grant funding. Investment of the Consolidated Fabric Fund As referred to in the section entitled 'lnvestment Policy and Performance" changes are being made to the investment strategy of the Consolidated Fabric Fund. The main changes that are planned are to reduce the Consolidated Fabric Fund allocation to the Deposit Fund managed by COSIT from c60° currently to IO°A. The balance is to be invested in a customised i ncome and growth strategy designed bythe General Trustees, external advisers. A similar 'multi-manager" approach to that introduced in 2025 for the Consolidated Stipend Fund will apply to the reinvested monies from the Deposit Fund. In making these changes, the General Trustees are of the view that local congregations should beneflt from improved investment income and capital gains overthe short and medium term. These changes are to be introduced on a phased basis from l April 2026. Trustee Recruitment The Tru5tee5 are continuing 5eekingto improve the diversity of their membership and are looking to reach a wider audience for recruitment. Church of Scotland Insurance Services Limited IC051SI As noted u nder the Objectives and Activities section of this report, it is intended that the cow pany will be wound up overthe course of 2026. THE CHURCH OF SCOTLAND GENERAL TRUSTEES Trustees, Annual Report for the year ended 31 December 2025 Risk ManaRement The Board is undertaking a review of the Risk Register through the Audit & Assurance Committee in order to have a more user-friendly and transparent means of complying with the Risk Management Policy. It will Still involve the recording and asse55ment of the likelihood and impact of risks broken down by department, c0￿mittee and working group with a view to the more significant risks being escalated to the Board for regular review. The Trustees Risk Assessment Register currently Identifies the key risks in respect of.. Congregations failing to implement effective maintenance and repair programmes. Congregations failing to adhere to statutory requirements for safe buildings. Significant financial support required from General Trustees to maintain lar8e 'signature" cathedral type buildings. Difficulty in the timely disp05a l of unoccupied congregational propertie5. Liabilities for General Trustees resulting from the decisions of others. Depletion of funds as expenditure continues to exceed income Mitigation of the key risks is as follows- Congregations failing to implement effective maintenance and repair programmes In accordance with The Church of Scotland General Trustees IPropertie5, Funds and Endowments) Act 2024 la5 amended by Act XV 20251, it is the responsibility of the congregation to ensure that the recommended works highlighted in the 5-yearly survey reports are undertaken in order to ensu re that ' buildings are maintained. The primary risk is that congregations fail to implement the necessary u rgent, essential and desirable work. The im plerrlentation of the Presbytery Mission Planning Act 2021 and the introduction of the Asset Management Building Audit has enabled the Trustees to collect data on all Churches and Halls, and a simila r exercise will be req uired to obtain information on all other properties. The appointment of Building Officers within Presbyteries 15 fundamental to mitigating thi5 risk. All Presbyteries now have a Build ing Officer. The Building Officer 15 tasked with undertaking the 5-yearly building inspections which provides consistency of recommendations acr055 Presbyteries. The Building Officer is then responsible for following up on recommendations and works to support individual Kirk Sessions to ensure that recommendations are implemented to an agreed timetable. It is intended that the Trustee5, worki ng with the Presbyteries and Buildings Officers, will take a more proactive approach to the provision and maintenance of manses (through the medium of the Manse Working Group and Presbytery Support and Buildings Committeel. It is expected that those manses which can not be refurbished at reasonab5e c05t 50 as to meet statutory Tolerable Standards as a de- minimis will be disposed of and replaced. 16 THE CHURCH OF SCOTiAND GENERAL TRUSTEES Trustees, Annual Report for the year ended 31 December 2025 Risk Mana ement Icontinuedl Congregations failing to adhere to statutory requirement for safe buildings The Safe Buildings Working Group has been established, reporting to the Fabric Commiltee. The Working Group overseesthe work of the Health, Safety, Risk & Compliance Manager and Fire, Risk & Compliance Manager. The Working Group meets monthly to review health and safety concerns and initiatives. Working alongside the Building Officers, the Health and Safety managers make visits to buildings to address specific concerns and deal with telephone and email enquiries on a daily ba515. The Attestation procoss sot out in The Church of Scotland General Trustees (Properties, Funds and Endowments) Act 2024 las amended by Act XV 20251 is the principal means of checking statutorv com pliance. It is the responsibility of Presbyteries to check that congregations have property register5 and manse condition schedules in place for each building. These documents contai n the necessary statutory requ irements. Presbyterios are currently failing to demonstrate to the Trustees that the attestation process is being followed. The Trustees have highlighted the importance of the attestations to Presbyteries and further work will be undertaken to addres5 these issues. Significant financial support required f rom General Trustee5 to maintain large "signature" cathedral type buildings Tho Trustees still have administrative responsibility for one substantial historic listed building that was not capable of being disposed of in the short-term following d issolution of a congregation. It is hold in the Historic Property Fund. While the costs associated with the upkeep over an extended period are substantial, the disposal of the remaining propertv 15 now under detailed consideration with disposal anticipated in the short term. The Signature Churches Network ha5 been created to endeavour to reduce the risk of further disolutions of congregations at thi5 type of church. By facilitating the congregations to work together, the aim 15 to try to deliver a f inancially sustainable future. The Trustees have also applied to Historic Environment Scotland to have three churches with limited finances and large anticipated maintenance costs to be handed over as Properties In Care to the Scottish Government. Difficulty in the timely disposal of unoccupied congregational properties Delays in the disposal of buildings and the difficulty of ensuring their condition is maintained prior to sale have im plications both for the congregation and the Trustees should an event occur that is not covered by the terms of the insurance policy e.g. due to non-compliance with its term5. The staff of the Trustoes are working with the Law Department and the Insurance Companyto minimise this risk by monitoring the progress of the sale proce55 for such cases. This will provide information to determine whether additional resource5 may be needed due to the upcoming increase in the number of disposals. 17 THE CHURCH OF SCOTLAND GENERAL TRUSTEES Trusteos, Annual Report for the year ended 31 December 2025 Risk ManaRement Icontinuedl Liabilities for General Trustees resulting from the decisions of others The Trustees deal with this matter by keeping their concerns before the General Assembly, the Assembly Trustees and FAPLT. Although the Trustees, Chair no longer serves as a full voting member of the Assembly Trustees, commun ication with that body has improved th rough regular meetings at senior level and the Vice-chair nowattendstheir Board meetings. TheTrustees have established more effective ways of working with outside agencies including Historic Environment Scotland, Built Environment Forum Scotland and The Scottish Futures Trust. The Trustees greatly appreciate the concerted voice which they have with other denominations in Scotland through the Scottish Churches Committee on which the Chief Executive 15 an active member. Depletion of funds as expenditure continues to exceed income The Trustees are addressing thi5 risk in a number of ways. The recommendations from the 2022 Investment Policy roview have contin ued to be implemented, with updated professional advice being sought on how to optimise invostment income across the different funds held. Charitable activities undertaken in furtherance of the charitable purposes of Supporting parish ministry and the provision of suitable building5 are delivered by restricted funds. Support costs directly linked to these activitie5, and the administr3tlDn and oversight of these funds, are being allocated against the relevant restricted funds. These two actions aim to ensure that fund5 are used appropriately and efficiently, and that existing income streams a re improved. Identification of new income Streams will be the next step in continLJing to address thi5 risk. THE CHURCH OF SCOTLAND GENERAL TRUSTEES Trustees, Annual Report for the year endod 31 December 2025 Structure Governance & Mana ement Constitution The Church of Scotland General Trustees 15 a statutory corporation incorporated by act of parliament under the Church of Scotland (General Trustees) Order Confirmation Act 1921. After being established in 1921 their powers and responsibilities were greatly extended by the Church of Scotland (Property and Endowments) Act 1925 and subsequent legislation which provided, among other things, for the transfer to them of the majority of the propertie5 of the pre-1929 Church of Scotland. The Trustees are the property-holding arm of the Church of Scotland and the bulk of the functional buildings of the Church are vested in them as legal owners. The General Trustees act, subject to direction5 from the General Assembly, in respect of the heritable properties and funds which have been transferred to them and they are also charged with the administration of the Central Fabric Fund, the Consolidated Stipend Fund, the Consolidated Fabric Fund and various miscellaneous funds, mainly fabric-oriented. The two Consolidated Funds and the miscellaneous funds are held principally for the future benefit of individual congregations at the discretion of the General Trustees. The General Trustees IProperties, Funds and Endowments) Act 2024 was approved by the 2024 General Assembly. It brought together the vast majority of the church law relating to the operation of the General Trustees and tho Funds for which they are re5pon5ible. It will simplify the way the Trustees operate and provide greater f lexibility in areas where that will be of benefit. Directions and instructions from the General Assembly cannot conflict with the General Trustees, 5t3tutory powers, trusteeship responsibilities or charity legislation. Organisation and Structure Volunteers now com prise General Trustees Ivoting members), Advisory Members Inon-voting mombors who attend Board meetings), Committee Members who attend committee or working group meetings but not Board meetings and Co-opted Members who attend a working group for a Specific purpose and for a limited period. Advisory Members who are eligible to become General Trustees (Elders or Ministers) may be nominated and elected by the Board to have their names put forward for appointment at a forthcoming General Assembly as it is only that body that formally appoints new General Trustees. As at the reporting date, the Board comprises 17 General Trustees incl uding tho Procurator of the Church who is a Trustee ex officio. There are eight Advisory Members who also attend Board meeting5 but have no voting right5. There are also ten Committee Members and two Co-opted Members. A 'List of General Trustees and Advisory Members" is provided on page 23. The terms of reference of the Board, the Comm ittees and the working groups have been updated and approved by the Board. The working groups report to the Committee in question. Only the Boa rd has formal deci5ion-making powers apart from areas where Comm ittees have been granted delegated authority by the Board. i() THE CHURCH OF SCOTLAND GENERAL TRUSTEES Trustee5' An nual Repart for the year ended 31 December 2025 Structure Governance & Mana ement Icontinuedl Organisation and Structure The Trustees currently operate six Committees wh ich are responsible for particular aspects of the Trustees, work. They are shown below with their associated working groups. Committee5 Audit & Assurance Fabric Working Groups o Health and Safety WG Manse WG Energy Procurement WG Insurance Forum WG Finance & Resources Glebes Presbytery Support a nd Buildings Signature Churches WG Presbytery Planning WG Communications WG Nomination Committee Membership of the Nomination Committee comprises the Chair, Vice-chair, Committee Conveners and Committee Vice-Convener5 who are Trustees. It is attended by the Chief Executive. The Committees take decisions on behalf of the General Trustees on matters falling within their Terms of Reference which do not involve a change of policy. The Committees report their decisions to the next meeting of the Board. The Board and the Committees have a schedule of regular meetings throughout the year while the working group5 meet as required. The Trustees, Chief Executive is accountable to the Board and is responsible for the efficient and effective delivery of the Trustees, Corporate Objectives. The Chief Executive has full operational responsibility and is responsi ble for the management of staff and other resources. The Chief Executive, the Solicitor and General Treasurer or their deputies attend all Board meetings and all relevant Committee meetings as do the staff that serve the Com mittees. The Trustees have entered into a Service Level Agreement with the Assembly Trustees in relation to the financial, accounting and aud it function5 provided to the General Trustees by the Stewardship & Finance Department. The Department is part of the Support Service of The Church of Scotland Unincorporated Entities. Tho General Treasurer is ultimately accountable for the Annual Report and Accounts in their capacity as the Trustees, Treasurer under the 1921 Act.. On their own initiative, the Tru5tee5 seek instructions and directlons from the General Assembly and have an opportunity to promote General Assembly legislation to further their objectives when they present their Report to the General Assembly each May. The Trustees ensure that such instructions and directions are imple￿ented timeously. Frequentlyj this will involve c105e liai50n and co-operation with part5 of the nation al administration Iunincorporated Entities) and with external bodies such a5 the Scottish Churches Committee. 20 THE CHURCH OF SCOTLAND GENERAL TRUSTEES Trustees, Annual Report for the year ended 31 December 2025 Structure Governance & ManaEement Icontinuedl Appointment and Induction of Trustees General Trustees must either be Elders or Ministers of the Church of Scotland. The Trustees will continue to seek porsons with relevant skills, knowledge, experience and training and to fill skills gaps arising through retirement or resignation or in response to changes in the Scope of the Trustees, work. Details of potential Tru5tee5 are scrutinised by the Board and those identified as suitable are personally interviewed by the Chair and Vice-chair and one other Trustee after being given an opportunity of perusing an information pack including extracts from relevant legislation, the last financial report and audited financial statements, committee remits, staff organisation and directory and Calendar of meetings. Following successful interview, new members are co-opted as Advisory Members before being nominated for formal appoi ntment as a Trustee by the General Assembly. This enables the members to gain experience of attending Committee and Board meetings, understanding the business and objectives of the General Trustees before deciding if they wish to be nominated as full Trustees. Trustees and Advi50ry Members are usually allocated to at least one of the Committees accord ing to their skills and expertise. Every effort Is made to fulfil train ing needs as these come to be identified and new members are encouraged to attend external trustee training courses. Members of the Church of Scotland who are neither Ministers nor Elders but whose skills and experience have been identified as relevant to the work of the General Trustees may serve a5 Advisory Members or Committee Members. All members of the General Trustees are Volunteers and may also bo involved at Congregational and Presbytery level, and may also be active within the National Offices or Forums. Apart from the Chai rman and Vice-chairman who are entitled to receive a modest honorarium as provided for in the 1925 Act, no members receive remuneration except reimbursement for expenses incurred whilst undertaking dutie5 for the General Trustees. Related Parties The General Trustee5 are an integral part of the Church of Scotland, and along with the Unincorporated Entities of the General Assembly of the Church of Scotland are component elements of the Church of Scotland, reporting annually to the General Assembly and subject to its direction and are thus related parties a5 Stated in Note 28 to the Financial Statements. In carrying out their functions, the Trustees work closely with the Unincorporated Entities in the shape of the Faith Action Programme Leadersh ip Team at both trustee and executive staff levels. The General Trustees have provided Cr055Reach, the direct social care service of the Church of Scotland Unincorporated Entities, with a loan facility of up to £3.2m for the redevelopment of Gaberston House, with the loan guarantee being provided by the Unincorporated Entitie5, of which £3.Im is outstanding at 31 December 2025. 21 THE CHURCH OF SCOTLAND GENERAL TRUSTEES Trustees, AnnLJal Report for the year ended 3 1 December 2025 Structure. Governance & Mana2ement Icontinuedl Related Parties Icontinuedl The General TrusteEs currently hold 54/0 of the invested funds, and 77% of the cash funds under their adm inistration with the Ch urch of Scotland Investors Trust. The Trustees and their executive staff rely heavily on the high level of skill and professional expert15e of the Solicitor of the Church and the Law Department. The Church of Scotland In5uranceServices Limited ICOSISI is a whollyowned subsidiaryof the General Trustees. Further information regarding the relationship between the company and the General Trustee5 is conta inod later in the report. The accounts of COSIS have been consolidated with those of the General Trustees. The Trusteos acknowledge that the work of the General Trustees would be virtually impossible without the sign ificant contribution from members of Congregational Boards, Ki rk Sos510ns and of Presbytery off icia15. It is therefore important to note that while this voluntary effort is one of the strengths of the Church of Scotland, it also represent5 a limitation on tho ability of the General Trustees to impose solutions on congregations and Presbyteries. This reflects the Presbyterian structure of the Church of Scotland which 15 evidenced in the lack of powers in General Assembly legislation to enforce compliance. The General Trustees, risk register refers to this situation. 22 THE CHURCH OF SCOTLAND GENERAL TRUSTEES Tru5tees' Annual Report for the year ended 31 December 2025 List of General Trustees Current RetiredlresiEned Walter H Barbour (resigned 031111251 Manliffe Goodbody (retired 211051251 William M Lawrie (retired 21105/251 Robert Bell Fraser Bews jonathan Brodie rex officioj David Coulter Michael Craig Alan Gibson Isobel W Gray William A Hall Nigel W Hicks Alan F K Kennedy (Choir until 09/09/25) Neil l M MacGregor Kenneth l Mackenzie Michael Pearson (from 21/05/25,, Vice Chuirfrom 09/09/25) Tim Podger Scott Rennie fchoirfrom 09/09/25,. Vice-choir until 09/Q9/251 Nigel Robb D Stewart Tov List of Advi50r Members Current Retiredlresigned Bahar Raeisi Dehkordi (retired 21/05/25) Chris lohnstone Iresigned 27/11/251 Logan Brown Hugh Campbell-Adamson (from 18/11/25) D Chri5 Dunn Ifrom 05108/251 David Inglis Ifrom 18/11/251 Bryan Kerr (frorn 05/08/251 Lisa-jane Ra nkin Ifrom 05/08/251 lan W T Lochhead Ap.polnted as General Trustees Dn 21105125 Michael Pearson Rosalind J Taylor 23 THE CHURCH OF SCOTLAND GENERAL TRUSTEES Tru5tee5' Annual Report for the year ended 3 1 December 2025 Reference and Administrative Details Offices 121 George Street Edinburgh EH2 4YN Bankers The Royal Bank of Scotland plc 36 St Andrew Square Edinburgh EH2 2AD Independent Auditors RSM UK Audit LLP Third Floor 2 Semple Street Edinburgh EH3 8BL Investment Manager5: The Church of Scotland Investors Trust June Lee Secretary 121 George street Edinburgh EH2 4YN Mercer Limited l Tower Place West Tower Place London EC3R 5BU Cazenove Capital Schroder & Co Limited l London Wall Place London EC2Y SAU Chief Executive and Clerk Brian D Waller LLB IHonsl Dip LP Treasurer Leanne Thompson BSclHonsl CA (from 15 December 20251 Jenny Simpson BSclHons) FCA DChA {until 11 December 2025) Solicitor Mary E MacLeod LLB NP 121 George Street Edinburgh EH2 4YN 24 THE CHURCH OF SCOTLAND GENERAL TRU5TEE5 Trustees, Annual Report for the year ended 31 December 2025 STATEMENT OF TRUSTEES, RESPONSIBILITIES The Trustees are responsible for preparing the Trustees, Ann ual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Ireland" The law applicable to charities in Scotland requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the group and parent charity, and of the income and expenditure of the group and parent charity forthat period. In preparing these f inancial statements, the Trustees are required to.. select suitable accounting policies and then apply them consistently.. observe the methods and principles in the Charities SORP,. rnake judgments and estimates that are reasonable and prudent; state whether applicable accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements- and prepare the financial statements on the going concern basis unles5 It is inappropriate to presume that the group and pa rent charity will continue in business. The Trustees are responsible for keeping proper accounting records that disclose with reason able accufacy at any time the financial posltion of the group and parent charity, and enable it to ensure that tl7e f inancial statements comply with the Charities and Trustee Investment (Scotlandl Act 2005 and the Charities Accounts Iscotlandl Regulations 2006 las amended). They are also responsible for safeguarding the assets of the group, and hence for taking reasonable step5 for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the charity and f inancial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdiction5. Edinburgh Date.. 7 April 2026 Rev Dr Scott Rennie MA BD STM Truste Brian D Waller. LLB (Hon51, Dip LP Chief Executive and Clerk 25 THE CHURCH OF SCOTLAND GENERAL TRUSTEES For the year ended 31 December 2025 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE CHURCH OF SCOTLAND GENERAL TRUSTEES Opinion We have audited the financial statements of The Church of Scotland General Tru5tee5 (the 'parent charity'l for the year ended 31 December 2025 which comprise the Consolidated Statement of Financial Activities, the Charity Statement of Financial Activities, the Balance Sheets, the Statement of Cash Flows and the Notes to the Financial Statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation 15 applicable law and United Kingdom Accountingstandards, including FRS 102"The Financial Reportingstandard applicable in the UK and Republic of Ireland" (United Kingdom GonerallyAccepted Accounting Practice). In our opinion the financial statements.. 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 tho 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 Iscotlandl Act 2005 and regulation 8 of the Charities Accounts (Scotlandl Regulations 20Q6 las amended). Ba515 for opinion We have been appointed as auditor under section 44llllcl of the Charities and Trustee Investment (Scotlandl Act 2005 and report in accordance with regulation5 made under that Act. We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements Section of our report. We are independent of the charity in accordance with the ethical req uirements that are relevant to our audit of the financial statements ir) the UK, including the FRC'S Ethical Standard and we have fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees, use of the going concern ba515 of accounting in the preparation of the financial Statements is appropriate. Based Dn the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast sign ificant doubt on the cha rity's abilitv to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees Wlth respect to going concern are described in the relevant sections of this report. 26 THE CHURCH OF SCOTLAND GENERAL TRUSTEES For the year ended 31 December 2025 INDEPENDENT AUDITOR'S REPORTTO THE TRUSTEES OF THE CHURCH OF SCOTLAND GENERAL TRUSTEES continued Other information The other information comprises the information included in the annual report other than the financial statements and our auditor'5 report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materia Ily inconsistent with the financi21 statements or ou r knowledge obta ined in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are requ ired to determine whether this gives ri&e ta a material misstatement in the f inancial statements themselves. If. based on the work we have performed, we conclude that there is a material mi5Statement of thi5 Other information, we are required to report that fact. We have nothing to report in this regard. Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Charitie5 Accounts (Scotlandl Regulations 2006 las amended) require us to report to you if, in our opinion: the information given in the financial statements is inconsistent in any material respect with the trustees, report,. or proper accounting records have not been kept- or the fina ncial statements are not in agreement with the accounting record5,' or we have not received all the information and explanation5 we require forour audit. Responsibilities of trustees As explained more fully in the Statement of trustees, responsibilitie5 set out on page 25 the trustee5 are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such intern al control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to f raud or error. In preparing the f inancial statements, the trustees are responsible for assessing the charity's abi lity to continue a5 a going concern, disclosing, as applicable, matters related to going concern and using the goin8 concern basis of accounting unless the trustees either intend to liqu idate the charity or to cease operation5, or have no realistic alternative butto do so. Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable a55urance about whether the financial statements as a whole are f ree from materia I misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance 15 3 h igh level of assurance, but 15 not a guarantee that an audit conducted in accordance with ISAS IUKI will alway5 detect a rllaterial misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in 27 THE CHURCH OF SCOTLAND GENERAL TRUSTEES For the year ended 31 December 2025 INDEPENDENT AUDITQR'S REPORT TO THE TRUSTEES OF THE CHURCH OF SCOTLAND GENERAL TRUSTEES continued the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent to which the audit was considered capable of detecting irregularitie5. including fraud Irregularities a re instances of non-compl lance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding com pliance with laws and regulatlQnS that have a direct effect on the determination of material amount5 and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identif led or suspected non-compliance with laws and regulations identified du ring the audit. In relation to fraud, the objectives of our audit are to identify and asses5 the risk of material misstatement of the financial Statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implernenting appropriate responses and to respond appropriately to fraud or 5U5pected fraud identified during the audit. Howovor, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operation5 are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of f roud. In identifying and assessing risk5 of material misstatement in respect of irregularities, including fraud, the audit engagement team: obtained an understanding of the nature of the sector, including the legal and regulatory fra meworks, that the charity operate5 in and how the charity is complying with the legal and regulatory framewDrks- inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud,. di5CU55ed matters about non-compliance with laws and regulation5 and how f raud might occur including a55e55rnent of how and where the financia I statements may be suscepti ble to fraud. As a result of these procedures we consider the most significant laws and regulations that have a direct impact on thefinaTrcial statement5 are FRS 102, the Charities SORP IFRS 1021, the Charities and Trustee Investment (Scotlandl Act 2005 and regulation 8 of the Charities Accounts (Scotlandl Regu lations 2006 las amended). We performed audit proceduros to detect non-compliances which may have a materi31 impact on the financial statements which included reviewing the financial statements includingthe Trustees, Report, remainin8 alertto new or unusual transaction5which may not be in accordance with the governing documents. 28 THE CHURCH OF SCOTLAND GENERAL TRUSTEES For the year ended 31 December 2025 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE CHURCH OF SCOTLAND GENERAL TRUSTEES continued The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business ratlDnale in relation tD significant, unusual transactions and transactions entered into outside the normal course of business, challenging judgments and estimates. A further description of our responsibil itios for the audit of the financial statements is located on the Financial Reporting Council's webslte at htt www.frc.or audltorsres onsibilitie5. This description forms part of our aud itor's report. Use of our report This report is made solely to the charity's trustees, as a body, in accordance with section 44llllcl of the Charities and Trustee Investment Iscotlandl Act 2005, and regulation 10 of the Charities Accounts (Scotlandl Regulations 2006 las amended). Our audit work has been undertaken so that we might state to the charity's trustee5 those matters we are requ ired 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 its trustees as a body, for our audit work, forthis report, or forthe opinions we have formed. ESM YE 4HAIt LLP RSM UKAudit LLP Statutory Auditor Chartered Accou ntants Third Floor 2 Semple Street Edinburgh EH3 8BL 16104126 R5M UK Audit LLP is eligible to act as an auditor in term5 of section 1212 of the Companies Act 2006 29 rn￿rn m KD O CD N O Ln i cri H H:1: H'll 4 r mtho m a) m M I 'n' n'14 Ln Ln 0¢ ouo v co I '.r4 Ln Ln o Ln o m ryj ttr 30 fo ¢ ¢ (Th DJ O Lrn m cn O Ll eo Ln )0￿0 Ln Ln Ln N Ln Ln m 31 THE CHURCH OF SCOTLAND GENERAL TRUSTEES BALANCE SHEETS As at 31 December 2025 Note Group Charity 2025 £000 2024 £000 2025 £000 2024 £000 Fixed Assets 12 Tangible Assets 13 Investments 14 Investment in Subsidiary Company Total fixed assets 546,851 286,223 563,915 255,613 546,851 286,223 3,044 563,914 250,441 7,675 833,074 819,528 836,118 822,030 15 Long Term Loans 3,247 1,584 3,247 1,584 Current Assets 15 Short Term Concessionary Loans 16 Debtors 24 Short Term Dep051ts 24 Cash at Bank and in hay)d 289 2,123 28,651 10,082 41.145 253 1,950 31,236 8,147 41,586 289 ioi 28,6SI 8,630 37,671 253 132 31,236 6,067 37,688 Total current assets 17 Creditors,, Amounts falling due within one year 115,9731 14,5181 115,9271 13,3561 Net Current Assets 25,172 37,068 21,744 34,332 Total Assets less Current Liabilities 861,493 858,180 861,109 857,946 18 Provisions for Liabilities and Charges 13841 12341 Net Assets 861 109 857,946 861 109 857 946 The funds of the charity.. 20 Endowment Funds 4,819 4,478 4,819 4,478 20 Restricted Funds 639,229 639,752 639,229 639,752 . 19, 20 Revaluation Reserve 195,363 193,797 195,363 193,797 20 Unrestricted Funds 18,613 12,169 18,613 12, 169 20 De5ignaterl Funds 3,085 7,750 3,085 7,750 Total charity funds 861 109 857 946 861 109 857 946 The note5 on page5 34 to 52 form an integral part of these financial statements. The financial slalement5 on pages 30 to 52 were authorised for 155ue by The Church of Scotland General Trustees ON 7 April 2026 and were signed on its behalf by.. Rev Dr Scott Rennie MA BD STM, Chair Leanne Thompson BSclHonsl CA. Treasurer 32 THE CHURCH OF SCOTLAND GENERAL TRUSTEES STATEMENT OF CASH FIOWS for the year ended 31 December 2025 Group 2025 £000 Charitv 2025 £000 2024 £000 2024 £000 Note Cash flows from operating activitie5'. 23 Net cash absorbed by operating activitie5 114,6741 14,5201 114,8521 15,2811 Cash flows from Inve5tln8 activities.. Investment income Purchase of Ta ngible Assets Proceeds from sale of Tarigible A55Qt5 Purchase of Investment5 Proceeds frorn sale of Investments Transfer of cash balance Payment ol Loans Repaymeni of Loans Net cash generated from investing activjties 8.626 17.2701 30,008 1154,2871 139,671 11,16UI 11,8881 324 14,024 8,652 14,738 13,6011 17,2701 25,693 30,008 118,5791 1154,2871 6,830 134,365 233 11,1601 12,0781 11,8881 308 324 17,458 14,830 9,647 13,6011 25,693 117,2811 5.221 233 12,0781 308 18,142 Cash flow from financing activities.. Net cash change in financing activities Changè in cash and cash equivalent5 in the reportlng year 16501 12,938 1221 12,861 Cash and cash equivalent5 at the beginnlng of the reporting year 39,383 26,445 37,303 24,442 24 Cash and cash equivalent5 at the end of the reportlng year 38,733 39,383 37,281 37,303 NET DEBT RECONCILIATION Z4 Analysis of changes in net debt Group At ljan 2025 £000 At 31 Dec 2025 £000 Cash flows £000 Cash and cash equivalents C35h Cash equivalents 8.147 31,236 1,935 12,5851 10,082 28,651 39,383 16501 38,733 Analysls of change5 in net debt Charity At ljan 2025 £000 At 31 Det 2025 £000 Cash flows £000 Cash and cash equivalents Cash Cash equivalents 6,067 31,236 2,563 12,5851 8,630 28.651 37,303 37,281 33 THE CHURCH OF SCOTLAND GENERAL TRUSTEES NOTES TO THE FINANCIAL STATEMENT5 for the year ended 31 December 2025 Accounting Policies The principal accounting policies adopted, jLJdgement and key sources of estimation uncertainty in the preparation of the financial statements are as follows.. al General information The Church of Scotland General Trustees is a statutory corporation, established by the Church of Scotland IProperties and Endowments) order Confirrnation Act 1921. It is recognised a5 a charity for tax purposes by HMRC, registered with the Office of the Scottish Charity Regulator IOSCRI under the charity number.. SC014574 and meets the definition of a Dublic benefit entity under FR5 102. The principal office of the charity 15 121 George Street. Edinburgh, EH2 4YN. The principal activities Df the charity are as described in the Trustees, Report Ipage 31. Subsidiary Companv The principal activity of the Church of Scotland Insurance Services Limited is arranging insurance and providing risk mana8ement 5UPPOrt to the congregations of the Church of Scotland. bl Basis of preparation The group and charity financial statements are prepared in accordance with the Statement of Recommended Practice.. Accounting and Reporting by Charitie5 preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 I'the Charitie5 SORP'I, FR5 102.. The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland I'FRS 102,1, the Charities and Trustee Investment (Scotlandl Act 2005 and the Charities Account51Scotlandl Regulation$ 2006 las amended). The financial statements consolidate the results of the charity and its wholly owned subsidiary, Church of scotland Insurance Services Limited. Assets and liabilities are Initially recogni5ed at historical cost or transaction value unless oiherwise slated in the ' relevant accounting policy notes. The financial statements are rounded to the nearest whole £1,000 except where otherwise indicated and are presented in £ sterling. cl Preparation of accounts on a going concern basis The Trustees have a reasonable expectation that the Group has adequate resources to continue in operational existence for at least the next the next 12 months from the signing of the fina ncial 5tatement5. The Trustees have undertaken extensive planning and forecasting and confirm that there are no material uncertainties in respect to the going concern of the charity. The Group therefore continues to adopt the going concern basi5 in preparing its financial statements. dl Group financial statements The results of the Church of Scotland Insurance Service5 Liwited have been con501idated on a line by line basis in the Consolidated Statement of Financial Activities and the Balance Sheet. The accounting policies of the Subsidiary company do not materially differ from those of the General Trustees and inter-group transactions and balances have been eliminated from the consolidated financial statements. 34 THE CHURCH OF SCOTLAND GENERAL TRUSTEES NOTES TO THE FINANCIAL STATEMENT5 for the year ended 31 December 2025 AicountinB Policies (Continued) el Recognition of in¢ome Generally incomin8 resources are accounted for in the 5tatemeNt of Financial Activitie5 when there 15 legal entitlement to the income and It is probable the income will be received and the arnount can be quantified with reasonable accuracv. Dividends from the Church of Scotland Investors Trust Growth and Incorne Funds are accounted for when approved with interest earried on the Dep051t Fund accounted lor when receivable up to the Balance Sheet date. Properly sales income is recognised according to the transaction's settlement date lalrnost always the date of receipt). Gift Aid Donations a re reflected as distributions by the subsidiary trading company and are recognised when received from the subsidiarv. Legacy, donation and grant income Is recognised when the charity has entitlement to the income, it 15 probable that it will be received and amounts can be measured reliably, except a5 follows.. when donor5 specify that donations / grants must be used in future periods, the income is deferred. when donors impose conditlOn5 which have to be fulfilled before the charity becomes entitled to the income, the income is deferred and recognised when the conditions have been met. Donated a55ets comprises.. capital expenditu re incurred by individual congregations on the property they occupy, and treated as donated assets in these financial statement5 a5 title to the properties vests in the General TriJ5tees. a valuation of property for which the title h65 transferred to the General Trustee during the year. Rental income is recogni5ed when due. fl Expenditure Expenditure 15 included in the Statement of. Financial Activities on an accruals basis and allocated to the appropriate headings in the financial statements. Grants and loans are recogn15ed as a liability on the date of approval by the Trustees. The cost5 of raising funds include the costs incurred in generating voluntary income, to8ether with investment mana8ement costs. Charitable activitie5 expenditure enables the Church of Scotland General Trustees to meet their charitable a iTrnS and objectives. Governance costs are the cost5 associated with the governance arrangements of the Church of scotland General Trustee5, and relate to the general running of the Charity, These costs include internal and external audit, and the costs associated with meeting constitutional and statutory requirements such a5 the costs of Trustee Meetings and the cos15 of preparation ol the Trustee5' financial Statements. This category also includes costs 3ssociated with the strategic as opposed to the day-to-day management of the Charitv. Support costs are those costs that enable fund generating and charitable activities to be undertaken. These costs inclLJde legal, linance and payroll administration, direct staff costs, human resources, central prerni5es and information technolo8y as set out in note 8 THE CHURCH OF SCOTLAND GENERAL TRUSTEES NOTES TO THE FINANCIAL STATEMENTS for the yÈar ènded 31 December 2025 Accounting Policies Icontinuedl gl Employee benefit5 The Church of Scotland Insurance Services Limited provides a range of benefits to employees, including defined contribution pension plans. hl Taxation The Church of Scotland General Trustees, as a statutory corporation, have charitable status for UK tax purpDses and are exempt from tax on income and gains to the extent that they are applied to its charitable activities. The Church of Scotland InsLJrance Services Limited presently distributes part of its taxable income by way of Gift Aid but the remainder of its profits are chargeable to Corporation Tax. Provision is also made for deferred taxation, using the liability method, on all material timing differences, including revaluation gain5 and losses on investments, recognised in the Subsidiary Company's profit and loss account. Deferred taxation is calculated at the rate5 at which it is expected that the tax will arise. il TanÈiblè assets, rhe Church of Scotland General Trustees holds heritable properties on behalf of the UE, FAPLT, Committees, Congregations and other agencies of the Church of Scotland. These properties are not recorded in the financial statements of the General Trustees but are recorded in the financial statements of the bodies on whose behalf the titles are held as beneficiarv nominees. Tangible asset5 are slated at periodic valuation le55 accu mulaled depreciation and accumulated impairment losse5. Cost includes the original purchase price, costs directly attributable to bringing the a55et to it5 workin8 condition for its intended use, dismantling and re5toratlDn costs. Glebeland and Heritable Properties Both glebeland and heritable properlie5 whose titles are vested in the General Trustees have been capitalised at valuation as deemed cost, and revalued on an annual basi5, using the methodology approved by the Trustees as set out in Note 2. Expenditure incurred by congregations on major projects C051ing over £50,000 during the year is capitalised at Cost, prior to the annual revaluation. Depreciation is charged on a straight line basis over So years for all heritable properties based on the year-end valuation. Tanglble Flxed Assets excluding Heritable Properties Tangible Fixed Asset5 Costing more than £50,000 are capitalised al c05t, and are stated at cost less accumulated depreciation and accumulated impairment losses. Repairs, maintenance and minor inspection costs are expensed a5 incurred. Land is not depreciated. Depreciation on other assets is calcLJlated, using the str8ight-liNe method, to allocate the C05t to their residual values over their estirnated useful lives, as follows.. Manse5, Churches and Halls 50 years The assets. residual values and useful live5 are reviewed, and adjusted, if appropriate. at the end of each reporting period. The effect of any chan8e 15 accounted for prospectively. THE CHURCH OF SCOTLAND GENERAL TRUSTEES NOTE5 TO THE FINANCIAL STATEMENT5 for the year ended 31 December 2025 AccountSng Policie5 (Continued) il Tangible assets lcontinuedl Derecognition Tangible a55ets are derecognised on disposal or when no future economic benefit5 are expected. On disposal, the difference between the disposal proceeds and the carrying amount is recognised in the statement of financial activitie5 and inclLided in 'Other Expenditure, if a loss is realised Dr 'Other Income, if a gain is reèlised. 11 Investments Listed investment5 are valued al their mlddle market value at the tlose of bu5ine5S at the year en(t. This closing valuation is then used to attribute a value to units held by investors. Investment5 are held at fair value through the Income & Expenditure Account. Deposits held by the Deposit Fund are stated at cost. Realised and unrealised @ains and105ses are ifjcluded within the Statement of Financial Activities. The investrrent in the Subsidiary Company is stated at fair value which the Trustees consider to be the underlying value of its net asset5. Gains and lo5se5 on disposal and revaluation of investments are recorded in the Statements of Financial Activities. kl Cash and cash equivalents Cash and cash equivalents include cash in hand and deposits held at call with the Investor5 Trust. 11 Provisions and contingencies Provisions Provisions are recogni5ed when there is a present legal or constructive obli8ation a5 a resLJIt ot past events,. it is probable that an outflDW of resources will be required to settle the obligation,. and the amount of the obligation can be estimated reliably. Contingencies Coritingent liabilitie5 arise as a result of past events when lil it 15 not probable that there will be an outflow of resource5 Qr that the amount cannot be reliably measur¢d at th@ ropo¥tinB date or lill when the existence will be confirmed by the occurrence or non-occurrence of uncertain future events not wholly within the charity's control. Contingent liabilities are disclosed in the financial statements unless the probability of an outflow of resources is rernote. 37 THE CHURCH OF SCOTLAND GENERAL TRUSTEES NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2025 Ac¢ountin8 Policies Icontinuedl ml Long Term and Short Term Contessionary Loans Fabric loans to congregations meet the definition of social investments and concessionary loans ès defined within the Charities SORP as they are loans made primarily to further the charitable aims of the General Trustees and interest rates charged are below the prevailing market rate of interest. Fabric loans represent loans made lo congregations from the Central Fabric Fund for the purposes of maintainillg and / or enhancing their building condition. The term of a long term loan is normally a period between 5 to 8 years with interest rates of 0%, 3% and 5% depending on the circumstances ol the congregation. Short term loans may be awarded mainly for property works with the loari repaid in full or in part from the third Party grant funding or VA T reclairn5. Fabric loans are measured at cost less impairrment. Recoverability of loans is considered on an annual basis and 15 provided for as required. nl Financial instrument5 The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instrument5. Basic financial in5trumellts are initially recognised at transaction price and subsequently measured at their settlement value, u nless the arrangement C0115titutes a financing transaction. Financing transactions are initially measured at the present value of the future receipts discounted at a market rate of Interest, and are subsequently carried at amortised cost, using the effective interest rate method. InvestrNent5 in Growth and Income Fund Unit5 held with the Investors Trust are shown at fair value. ol Fund Accounting The General Fund is an unrestricted fund which is available for use at the discretion of the Trustees in furtherance of the general objectives of the General Trustees and which has not been de518nated for other purposes. Designated Funds comprise the unrestricted funds of the 'ln5urance Company, and those of the Historic Property Fund that have been set aside by the Trustees for particular purposes. Restricted Funds are funds which are to be used in accordance with Specific restrictions irllposed by donors. Permanent Endowment Fund5 are funds which are to be retained as capital in accordance with the wishes of donors. The Restricted Revaluation Reserve arises on the revaluation of land and properties subsequent lo their initial recognition. pl Related party transactions The charity discloses all related party transactions, including those with wholly owned rnembers of the group. 38 THE CHURCH OF SCOTLAND GENERAL TRUSTEES NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2025 Critical accounting judgements and estimation uncertaintv Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future event5 that are believed to be reasonabSe under the circurn5tance5. Critical judgements in applying the entity's accounting policies No critical jud8ement5 are used in the application of the charity's accounting policies. Key accounting estimates and assumptions Valuation of Assets Heritable assets fall into four classe5, the valuations of which are calculated using Third Party indices based on variable market data. The assets have been valLJed as fDIIows.' Glebeland Revalued annually based ON the prior year yield of glebe rental and seasonal grazing income generated throughout the year. The yield applied for pasture land in Scotland is 1.5/0 based on a forma5 assessment carried out by 8ell Ingram in 2022. and will be reviewed annually. There is no deprecialion charged on glebeland. Other Land Other land is held at C05t and no depreciation is charged on this asset category. Churches and Ha115 Revalued annually at 31st December using the 2016 valuation a5 a baseline figure, adjusted for inflation using the Gardiner & Theobald Tender Price Index at Q4 In the respective year. There is an annual depreciation charge applied of 2% of the year end value of the property. Manses The values of manses are based on a formula involvin8 the rllidpoint of the relative Council Tax Band as at 1991 to which indexing is applied to each Band based on the Nationwide Building Society House Price Index at Q4 in the respective year. There is an annual depreciation charge applied of 2% of the year end value of the propertv. 39 THE CHURCH OF SCOTLAND GENERAL TRUSTEES NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the year ended 31 December 2025 Group Charitv 2025 EOOO 2024 £000 2025 £000 2024 £000 3 Iniome frorn Donations and legacies 54 li 5,270 16 54 li 5,270 16 Donations Donated procetsds- property sale5 Wlth Assembly Control Clause Monie5 frofn Other Board51Commitlee5 New Capital from Congreeations 6.483 641 3D 7,173 6,483 641 30 7,173 16 5,351 16 5,351 4 Income from Charitable activities Donated Assets Other Income oth￿r- General Fund 6.178 9,240 6.178 9,240 15 6.195 99 9,348 15 6,195 99 9,348 5 Incornp from Investments 8,428 8,510 8.428 938 5,237 135 14,738 8.510 1.108 198 8.626 142 8,652 29 9,647 6 Other Income Rental Income Subsidiary Curnpany Trading Income (note 141 Property Sales Levies on Property Sale5 Sundry Incomo 2.070 2,021 1.656 501 238 2,129 1,480 365 65 39 2.010 2,129 1,656 501 238 365 65 39 Properly sales are the proceed5 On the sale of servitudes, plu5 net realised gHin5 on disposal OF propertie5 vested with the General TrustÈÈs. Expenditure on Charitable Activitie5 Expendilure Granis awardod (note 251 Support cosis (note 81 2,871 ?.,899 14 3,238 574 ?.,871 2,899 14 5,784 3,238 574 5,784 3,813 3,813 Exponditure Grants awarded (note 251 Support costs (note 81 Reversal of Impairment1055e5 Realised loss on disposal of Tangible Fixed Asspts 12,562 25.177 383 14,396 9.477 329 12,562 25,177 383 14,396 9,477 329 8,691 45,555 1.714 24,763 8,691 45,555 24,763 Other (General & Design8ted Fundsl Expenditure Suppoct costs Inoie 81 Governance cost5 (note 91 69 2,429 22? 2,720 741 2,127 127 2,995 69 2.429 222 2.720 741 2,127 127 2,995 54,059 31,571 54,059 31.571 40 THE CHURCH OF SCOTLAND GENERAL TRUSTEES NOTES TO THE FINANCIAL STATEMENTS- CONTINUED for the year ended 31 December 2025 8 support Costs within Expenditure on Charitable Activitie5 (note 71 Support 10515 Supporting Providin8 Other IGeneral & Transfer to Designated) Ggvernanie £000 £000 212 198 1,676 75 81 187 2,429 Ministry Buildings £000 £000 14 383 2025 uoo 548 140 1,651 74 2024 £000 562 196 1,422 68 61 148 2.457 Legal Finance and Payroll Administration 1581 HLJman Resources Central Prem15P5 Information Technology 80 185 2.678 14 383 Tlie Church of Scotland General Trustees do not employ any staff directly- see note 10. All General Trustees payroll costs are recharged as 5UPPOrt costs. Group 2025 £000 Charitv 2024 EOOO 2025 £000 2024 OOD 9 Governance Costs External Audit 65 31 io 64 33 31 io 36 Trustees, RemunerBtion and Expenses (note 101 Expenses of Advisory me￿berS etc. Trustees, Indemnity In5urancc Professiona5 Support for Trustees 34 148 288 57 50 179 33 50 127 148 222 10 Employees and tru5tee5 EmplDyee5 1,338 170 242 165 1,328 168 226 48 1,194 158 159 165 1,089 150 Soci61 Seiurity Costs Defined Contribution Pension Costs Other Staff Cosis 48 The General Tru5tee5 do not employ any stall. except in iheir Subsidiary Company. but reimburse the Church of Scot13Dd for the services OF staFI employed by the Church's Centfdl Services Committep.. but wurking primarily for the General Trustees. The average head count of such employees was 2712024- 251 and calculatod as full time equivalents was 2512024- 241. In addition, the undernoted staff cos15 were ificurred by the Subsidiary Cornpany, The Church of 5coiland Insurance Service5 LimitÈd. 2025 £UOD 143 12 83 238 2024 £000 239 18 91 348 Social Security C05tS Defined Contribution Pension Costs Group 2025 £000 Charity 2025 2D24 £000 2024 Employees, Including key man3Retnent. who received employee benefits over £60,000.. E60.001- £70,000 £70,001- £80,000 £80,001 £90,000 £90,001 EIOO,000 £ioo,ooi- £iio,000 41 THE CHURCH OF SCOTLAND GENERAL TRUSTEES NOTES TO THE FINANCIAL STATEMENTS- CONTINUED for the year ended 31 December 2025 10 Ernployee5 and trustoes Icontinuedl Trustees Other than the Chairman and Vice-Ch3irman, who each received E2.Ik12024 - £2k each), the individual Trustees received no remuneration. Authority to pay this remuneration 15 contained in Section 38 01 Lhe Church ol Scotland (Property and Endowment) Act 1925. Expen%e5 amounting £6k in total were inCLJrred in respecr of nine Trustees mainly lor travel and subsisteDce12024 £1Sk - nine Trustees). A total of £214 was incurred in respect of Advi50ry Member512024 £5531. Key manugemenl compenststion Ke¥ management includes the Chief Exp.cutive of the General Trustee5, Heads of Department, Board members and Chief Executive of rh@ Church of Scotland Insur317ce Service5 Limited. The compensation paid or payable to key management lor emolovee sèrvices is shown below.. Group 2025 ChaiStv 2025 £000 355 48 2024 £000 440 71 2024 £000 333 31 364 Salaries and other short-term benefits Post-employtnent bonplitfi 404 88 492 11 Other Expendliure A3 murr fully ￿XplaIner1 In nore iq. taxable proflls arise In Ine Trustees, Irading subsidiary, the Church or scotland Insurance Services Limited. A5 a result provision is made for Corporation I'ax. Group 2025 £000 496 150 46 Charity 2025 £000 2024 £000 ' 633 2024 £000 Subsidiary Company- Trading expenditure Subsidiary Company Taxation 33 IZ Tangible Assets Subsid. Co Office Charity Equipment £000 EOOO 563,914 18 13,448 137,8401 7.329 546 851 Heritable Properties Land £ooo' 29,349 Group £Doo 563,932 13,448 137,8401 7,329 546 869 C05t or valuation At beginning of the year Additions Disposals Revaluations At end ol the year Accumulated depreciation At beginning of the year Depreciation Di5P05als Revaluations At end ol the year £000 534,565 13,448 137,58LI 6,770 517 202 12591 29,649 18 17 17 10.346 10,345 LO,345 110,3451 110,3451 10,345 18 18 Net book value at beginning of the year 29,349 534,565 563,914 563,915 Net book value at end of the year Net gain5 on disp0531 of tangible fixed assets Proceeds Oponing ner book value Net reali5ed gains I Ilossesl in year 29,649 517,202 546,851 546,851 1,233 12591 28,775 137,5811 30,008 137,8401 17,8321 30,008 137,8401 17,8321 974 18.8061 All heritable assets vested with the General Trustees are capitalised on a basis which recognises the estimated value of ihe asse15. It wa5 a150 36reed with the Ollice ol the Scottish Charity Regulator that this basis of valuation would be applied by the Trustees in preparing their financial statements. The basis of valuation Used 15 det3iled within Note 2 on page 39. Included within additions Is £6.2rn of donated asseis that have been capitali5ed during the year. 42 THE CHURCH OF SCOTLAND GENERAL TRUSTEES NOTES TO THE FINANCIAL STATEMENTS- CONTINUED for the year ended 310ecember 2025 12 Tangible Assets Icontlnuedl During the year capital expenditure on properties as incurred by individual congregations is capilalised on the basi5 that these are donaled assets, as the property titles are. vested in the General Trusiees. Gains on revaluation of tangible fixed assets The ¥3in on revaluation ol tangible fixed assets recognised in the Con501idated 51atement ol Financial Activitie5 15 reconciled as follow5.. 2025 £000 2024 £000 Revaluation gai Depreciation rever5iil 7,329 10,345 17,674 11,2631 16,411 15,A62 10,691 26,553 IL,2721 25,281 Reversal of impairment10%ses Net 8ain on revaluation of tangible fixed a55ets 13 Investments GTOUP 2025 £000 Charity Z025 £000 2024 £000 2024 £oao Fair value at begillning of the year Acquisitions at cosl D15pDsals at opening fair value I c05t Transfers fromlltol Short Term Deposits Net gains on revaluation 255,613 lJ4,287 1133,5461 1,160 15,709 228,843 250,441 18,579 154,287 16,6751 1128,3741 12331 1,160 15,099 8,709 223,912 17,281 15.1251 12331 14,606 Fair value at end of the year 286,223 255.613 286,223 2JO,441 Historic cost at end of the year 260,759 156,687 260,759 153,L63 Net gains on disposal of investments Proceeds Opening lair value Net realised gains in year 139,671 133,546 6,830 6,675 134,365 128,374 5,221 5,125 6,125 155 5.(JyI 96 Analysis of Investments at 31 December Church ol Scotland Investors Trust - Growth Fund Church of 5cot1and Investor5 Trust- Income Fund Church of Scolland Investors Trust- Deposit Fund Merccr Cazonove Ordinary Stocks and Share5 and Unit Trusts 52,493 27.954 75,446 124,680 5,650 167,670 27,576 55,195 52,493 27,954 167,670 27,576 55,195 124,680 5,650 5,172 286,223 255,613 286,223 250,441 14 Investment in Subsidiary Company The share capital of the Church ol Scotland Insurance Services Lirniied Icompany registration no. SCOOL7771 is wholly owned by the Church of Scotland Gencral Tru5tpe% 2nd Is authorised and regulated by the Financial Conduct Authority. The Compdny arranges cover for m05t cla55e5 of insurance and continues to insure Church of Scotland congregation5 a5 well as the congrcgation5 of other denominations. It does not have charitdble status for tax purpos05. The investment in the Subsidiary Company 15 Stated at fair v31ue which the Trustees considef to be th@ underlying value ol Its net asset5. 43 THE CHURCH OF SCOTLAND GENERAL TRUSTEES NOTES TO THE FINANCIAL STATEMENTS- CONTINUED for the year ended 31 December 2025 14 Subsidiary Company Icontinuedl A summary of the trading resu Its Is shown below. The information 15 taken from the latest available financial st3ternent5 of the Church of Scotland Insurance Services Limited and includes transactions with the Church of scotland General Trustees, 2025 £000 2024 £000 Turnover Administrative expenses Operating Profit Investment Incorne Gain oll Investment Assets Profit on ordinary activities before taxation Taxation Charge Net Operating Profit before Gift Aid Distribulions Gift Aid Distributions to the General Trustee5 Transfer to parent charity Net Operating IOeficitl/Profit after Gift Aid Distribution5 Reseivos brought forward Re5erve5 carried forward 2,02 1 13901 1,63 1 22 41 1,694 11501 1,544 19381 5,237 14,6311 7, 145 2.514 1.480 1606 874 63 539 1,476 1,476 11,1081 6,777 7,145 Subsidiary Company Funds.. Assets 3,474 14301 3,044 9,071 11,3961 7,675 Total Funds lincludin8 530,000 Ordinary shares of £1 each) 15 Loans - Group and Charity Loan movements were as follows.. Contessionary Interest Interest Free Bearing £000 £000 Other Interest Beaiing £000 2025 £000 2024 £000 Value at beginning of the year New loans paid out Loans recla55ified as CFF advance Loans repaid Interest a pplied Value of loans drawn at end of the year Movement in provision Tot31 Value of loans at end af the year Less Amounts repayable within one year Amounts repaya ble after one.year Standaid term Conce55ionary Loans 3re norrnally advanced for periods of between five and eight years. and are repayable via half yearly instalments with Interest rates ranging between Oyo to 5% depending on the circumstances of the loan application. Short term Concessionary Loans are normally advanced for a perlod no rnore than one year with interest rates ranging between 0% to 5% depending on the circurnstances of the loan application. At 31 December 2025, £308k interest bearing and £698k interest free concessionary loans had been committed but not taken up from the Central Fabric Fund12024.' £181k interest bearing, and £831k interest freel. At 31 December 2025, £98k other interest bearing loan5 had been committed but not taken up from the Stipend Fund12024'. £1.8ml. 209 165 249 1,379 1.723 1,837 1,888 2,488 2,078 12,5401 13081 io 1,728 109 1,837 253 11691 1281 io 231 12 229 14 11271 127 3,102 13241 137 3,538 205 205 205 3,102 70 3,536 289 44 THE CHURCH OF SCOTLAND GENERAL TRUSTEES NOTES TO THE FINANCIAL STATEMENTS- CONTINUED for the year ended 31 December 2025 16 Debtors Group 2025 Charity 2025 2024 £000 2024 £000 £000 £OOD Subsidi3ry Company Insurance Debtors Debtor5 and Prepayments 2,022 ioi 1,818 132 ioi 132 132 ioi 17 Creditors.. AmDunts falllng due within one year ¢iroup 2025 EOOO Ch3rlty 2025 £000 2024 EOOO 2024 £000 Central Fabric FuTid 8nd Bequest 8rantg payable Consolidaied Fabric Fund Erants payable Subsidiary Cofflp3ny Insurance Creditor5 Sundry Creditor5 and Aciruals Due to the Church ol Scotl3nd Unintorporaied Entitie5 4.013 8,196 46 2,488 4,013 8,196 2,48S 1,162 128 123 3,595 128 740 740 3,595 18 Pruvision lor Li3bilities and Charges Group 2025 £000 Charitv 2025 2024 £000 Z024 £000 £000 Deferred Taxation on unreali5ed Invesimeni g3in5 At beginning of the year Pro¥i5ion for year Atend oftheyear 234 150 384 234 234 19 Revaluation Reserve- Group and Charitv 2025 £000 2024 £000 £000 £000 Opening Rev3luatioD Reserv¢ Revaluation gain for the yea DepreL18tion reversal 193.797 180,368 6,666 9,745 15,194 10,087 16,411 114,845 1,566 25,281 ILI,5521 13.429 movemr.nt in year 'C105ing Revalu8tion Reserve balance (note 201 195.363 193.797 20 Funds AÈsiricted Funés The glebe lund5 are restricted for the purpo£p. Df managing Elebeland and supportin8 rhe ministry costs of individual congrogations. The stipcnd funds are restricted for stipend purposes aiid the Trustees use the income to support the Ministry cosis of individual congregations. The restricted 16bric fund5 are held lor the purpose of supportinE fabric nofrds of congre8atiOnS. Endowment Funds Permanent endowment lunds are represented by a number of endowment ILJnds held, the income from which is required to be used for the bÈnefit of congregational fabric or ministry needs. Tiansfers Trènsfer5 between funds generally represent balances held lor the benefit of individual con8regatlOn5 bein8 tr8n51erred froffl one fund 10 nother, the allocation of Support costs to re5trictpd funds, and rezllocation of funds by way ol the levy on prvpertv 981e. The fran5fer from the des18nated Subsidiary Company Fund to tho unrestricted Genaral Fund represents the transfer of the investrnent portfolio to the Generèl Trustees, and the Gift Aid payment for the year. 45 o DJ ¢ ODJ Ln ro rfj rri mo m P4 OL m Ln u) otyio Ix) O OO DJ Ln ￿ Ln Ln lx m co o DJ ry rv 0 Ln J * Ln Ln c Ln Ln p4 c 2 No Ln (D £co Ln Ln Ln Ln tyj Ln Ln ¢) oty J Ln c* CQ A pj ¢ Ln J rn Ln L• Lrn m r O pj ¢ opj mo 0¢ Lrn Ln 000 LD LD O ¢N cth 4 O Ln c Ln Ln ul rf? ¥D 0 Lrn ¢0 o r4 rN O Ln co Ln D) Ln Ln co rri c CJ o 4 0 0¢ r OA Ln Nl THE CHURCH OF SCOTLAND GENERAL TRUSTEES NOTES TO THE FINANCIAL STATEMENTS- CONTINUED for the year ended 31 December 2025 21 Analysis of group net assets among funds 2025 Total £000 546,8.51 286,223 Endowment RestriCtÈd Unrestricted Designated Revaluation £000 £000 £000 120 16.798 £OOD £000 195,363 Tangible A55et5 Investments Long Term LD3ns Current A55et5 351,368 264,606 3,247 35,880 115,8721 4.819 1,750 3,515 41,145 115.9731 13841 861,109 13841 4.819 639,229 18,613 195.353 2024 Endowmont RestrictEd Unre51ricted Oesienated Revaluation £000 £000 £000 £000 £000 £0¢ Tangiblo As.%ct£ InvÈstment5 Long Term Loan5 Current A5set% 370.000 234,226 1,584 37,236 13,2941 117 11,737 193.797 563.915 255,613 1.5S4 41.586 14,5181 4,478 5,172 377 3,973 12341 7,750 4.478 639,7J2 12,169 193,797 857,946 22 Financial instruments Thc groLJP and chariiy hève the following financial instruments hcld ai fair value.. Group 2025 fooo Charity 2025 EODO 2024 £DOO 2024 £000 Inve5tment5 at fair value 286,223 255,613 2S9.267 258,116 23 Reconciliation of net income to net cash flow from operating activities Group 2025 £000 Charity 2025 £000 2024 EOOO 2024 £000 Net income for the linancial year las per the statement of 3,163 37,546 3,163 Adjustments ftsr.. DepreciatiDn Dunaled A55etS Gains on inve5trnents Gains Dn property Investment iniome Ilncreasel I deirease in DÈhtor5 Increase in Loans due Lo3n5 reclassified or wrilten off Increase / Idecreasel in Prov1510n lor Loans Increase in Creditors Net tash used in operatin8 a¢tivitie5 10,346 16,1781 114,8341 19,8421 18,6261 11731 11371 10,693 19,2401 115.2541 124,2681 18,6521 10,345 16,1781 110,0691 19,9421 114,7381 31 10,691 19,2401 115,0701 124,2681 19,6471 2,540 11091 2,274 4,520 2,540 11091 2,303 5,281 11.605 114,6741 12.571 14,852 24 Anhly515 01 cash and cash equivalents Group 2025 Charitv 2025 £000 28,651 8,630 37,281 2024 £000 31,236 8,147 39,383 2024 fooo 31,236 6,067 37,-3Q3 £000 28,651 10,082 38.733 Short term deposits Cash at bank Total cash and cash equivalents 50 ¢ c c o o rHE CHURCH OF SCOTLAND GENERAL TRUSTEES NOTES TO THE FINANCIAL STATEMENTS- CONTINUED for the year ended 31 December 2025 Z6 Capital Commitments As at 31 December 2025. the General Tru5tee5 had approved a nuniber of iapital project5 which Will enable conÈrÈRations to draw down on balances within the Consolidated Fabric Fund. nue to these projects comprising both capital and revETrue expenditure and with some proiecis havinE a number of funding partners. Ihe exient of the capital iammitment cannot be estimated with any accuracy othe¥ than bein8 Ilmlted ta the amount held In n8we ol Ihe con8re8ation CDnLerned A contin8eTlt liability exists in relation to granis received frorn the CornmLJnity Fund, the Horitage Lottery Fun(1 and Hi.storic Environment Scotland in respect of work at building5 vested In the Gener31 Trustees. Some or all of the individual grants could beiome repayable in certain circumsiances, such a5 the Sale of the properties wiihin a spetilied period from the date of ieceipt of the grant. In cases where the procEed5 of 581È and other fund5 held by the CongreRations concorned were le55 than the èmount5 of the 8r3nts repayable. there could be a liability falling on the General Trustees 10 repay thÈ balance of grant5 amounting to £2.Itn as at 31 December 2025. ChLJrch of Scotland. The individual Congregations are charged with the maintenance and adequate Insuranto of their property bLJt in the event of their not having the re50Jrce5 10 meet statutory obligations these WOLJld fall on the General Tru5tp.e.5. It 15 not Possible 10 quoTrtify this poteniial liability bui ai 31 Deternber 2025 the Trustees are not aware of any specific liability against which a provision need be rnacle. The Trustees have taken a number of steps to tniiigate any poteniial liability that could arise from cc)ngregatiOn5 Trot adequately rnaintaining Property RegistÈr and Manse Condition Schedule,- tnonitoring follow ijp of Quinquennial Reports by the Trustees, holdin& resular property seminar5 throughout the COLJntry' deputation visit5 by Trustees,. Implempntation of comprehensive compu150ry insurance schemes lor building5, liabilities an¢ contents for congregations, appDilltment of a full-time safe Buildin85 Consultant By the en(1 of 2025, Presbytery Buildings Officor5 were appointed io nine PrÈsbyteries. 28 Related parl¥ transaction5 and controlling party The Church of scotland Gcneral TfUStEes are a component element of the Church of Scotland which has Designated Religiaus Charity stalLJS. This also Includos The Unincorporated Entities ol the Gèneral Assembly of ihe Church of Scotland, The Church of Scoiland Trust and The General A55embly. The General Tru5tee5 paid over to Faith Action Programme Leadership Team, which is Dne of thE Churih Df 5cDtland'5 Unincorporated Eniitie5, the Sum of £4.4m12024- £3.6tnl representing nei revenLJe incoffle from its Stipend and Glebe Rèvenue Funds and a top up from Stipend capiial as agreod by the 2021 General Assembly. The Church Df ScDiland Unincorpoialed Eniliies receive monies make p3ymenis on behalf of the Church of Scoiland General Trustees via a current aECOUnt At the end of Ihe financièl year, the 5Jm of £3.6m was due tD thp Church of Scotland Unincorporated Entities by the Church of Scotland Geiieral Trustees12024- £740kl- Both bodies are answerable to the General Asscmbly of the Church of Scotland. The General TrLJSiees paid intprnal support Costs to the Unincorporated Entities of £2 7m in respect of actommodation. Informaiion rechnolo8y, human In 2024 the General Trustees provided CrossReHch with a loon facility ol up to É3.2m for the redeveloprnent trf Gaber5ton House. with a loan guhrantee bein8 provided by the Unincorporated Entitie5. As at 31 December 2025, £3.Im Df the capital faciliiy had been drawn down, and the balance outstanding at the end of the financial year. including-accrued InlEre5t, was £3.1m. In addition. the General Trustees award funding ta. and hold charitable funds whith are fe5tricted for the benefit of, some of the congregations of which individual General Trustoe5 are members or Trustees. ThÈso transactions are all on an arm's length basis iri line with agreement5 Wlth all other CDngrEgatiOns, and declarations of interest are made by Individual General Trustees who may have a conflict ol Interest. 52