REGISTERED CHARITY NUMBER: SC017155
Report of the Trustees and Financial Statements for the Year Ended 31 December 2024
for
Knightswood Congregational Church
Brett Nicholls Associates Herbert House 24 Herbert Street Glasgow G20 6NB
Knightswood Congregational Church
Contents of the Financial Statements for the Year Ended 31 December 2024
| Page | |
|---|---|
| Reference and Administrative Details | 1 |
| Report of the Trustees | 2 to 3 |
| Independent Examiner's Report | 4 |
| Statement of Financial Activities | 5 |
| Balance Sheet | 6 |
| Notes to the Financial Statements | 7 to 13 |
Knightswood Congregational Church
Reference and Administrative Details for the Year Ended 31 December 2024
TRUSTEES
PRINCIPAL ADDRESS
REGISTERED CHARITY NUMBER SC017155
INDEPENDENT EXAMINER
David Nicholls FCCA Brett Nicholls Associates Herbert House 24 Herbert Street Glasgow G20 6NB
BANKERS
Bank of Scotland Anniesland Branch 836 Crow Road Glasgow G13 1ET
Page 1
Knightswood Congregational Church
Report of the Trustees for the Year Ended 31 December 2024
The trustees present their report with the financial statements of the charity for the year ended 31 December 2024. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
OBJECTIVES AND ACTIVITIES
Objectives and aims
The aim of Knightswood Congregational Church is to advance and promote religion by promoting the spiritual and mental wellbeing of the community it serves through the advancement of civic responsibility and community development.
ACHIEVEMENT AND PERFORMANCE
Charitable activities
As in previous years, our church continues to operate with regular hall hires- from groups like Slimming World to Fusion, a community-based youth initiative run by church members.
This year has been particularly challenging, especially in terms of finances, which are always tight. Although inflation has fallen and interest rates have been cut, these changes have not translated into tangible benefits for the church. During our spring and Christmas fairs, many stallholders expressed that they had seen little to no improvement, citing the continued strain on household budgets due to high utility and fuel costs.
Our congregation remains small and predominantly elderly. While some members give faithfully, others do not, which means the financial burden of sustaining church life and mission falls on a few. While operating with a deficit is not new to Knightswood, we are increasingly concerned that this year's shortfall may be greater than usual. We acknowledge the need to increase donations and reduce expenditures, but if we take this approach, it could also hasten further and faster decline.
We are currently managing legal and regulatory obligations related to Scotland's new Protect Duty policy and land registration. At the same time, we are navigating changes to the Disclosure system, including the requirement to register with Volunteer Scotland. As a result, many of our long-standing volunteers were required to renew their previously ''lifetime'' PVG certifications, now subject to a five-year renewal cycle.
Our efforts to register the church's land in Scotland also faced difficulties due to the congregation's limited capacity to handle this complex process. Consequently, we sought legal counsel from our solicitors, Brodies, who advised that transitioning to a Scottish Charitable Incorporated Organisation (SCIO) could simplify matters, particularly regarding land registration.
At the time of this report, we are approaching the final stages of transitioning from our current status as an unincorporated association to an SCIO. We anticipate this process will be completed by autumn/winter 2025.
In May 2023, we sold our former manse at 61 Fifth Avenue to the sitting tenants, who had been renting the property through Slater, Hogg & Howison (Countrywide Estate Agents). After negotiation, the property was sold for £345,000. The proceeds have been invested with Flagstone, allowing us to diversify our holdings and pursue higher returns.
Much of 2024 and 2025 has been devoted to ensuring compliance with charity law and a growing volume of legislation from both Holyrood and Westminster. The prevailing mood in the church is not despair but fatigue - an exhaustion born from excessive paperwork, compliance demands, and bureaucratic hurdles that continue to divert energy away from our core mission.
FINANCIAL REVIEW
Results
In the year ended 31 December 2024, the church incurred a net deficit of £38,270 (2023: surplus of £76,086).
At 31 December 2024, reserves stood at £327,843 (2023: £366,113), of which £289,910 were unrestricted, free reserves (2023: £326,967), £37,718 in designated funds which have been set aside for specific purposes (2023: £38,382) and £215 being the net book value of the charity's fixed assets (2024: £764).
Reserves policy
It is the Trustees policy to hold reserves to cover immediate needs and to facilitate the refurbishment of church buildings when required. For the year ended 31 December 2024, ordinary running costs equalled £23,778. The trustees are therefore satisfied that current level of free reserves, £289,910 (2023: £326,967), is in line with the target amount. Funds held in excess of the target being met will be invested to generate some additional interest income.
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Knlwood Conw•gadotrwl ¢PrCh Report ofth• Trustses for theyeai ended 31 D•cwnbJr 2024 STRUCTURE GOVERNANCE AND MANAGEMEI Gov•ming doeLment KrghtswtsXl Congregational Cthurch L£ an unlrtccrfpora a$¥atIC bli5h&Y by i¢B thn independem Is a reg18ter8d SwtEi5h chaty. Tr congresotth hts the Aght to eal a mhlster. The akn 8n¢ authorws '¢ac£ns to do with day 10 ¢Jay oflhe churth p4•J rh)rity ouNle5n6s as seiout by OSCFL K•y mana9•monl r¢rnun4ration In the opinion of tho knjstees 1$ rntmbor ot k4y.mww IM IAknlJi•r. Tho total cost for thjs post 2024 was £41,942 (2073: rJ7.772 Apwoved by ordgr of Lhb board ef Iwst898 on .. I on ts b8l*lFby. P•Jo 3
Independent Examiner's Report to the Trustees of Knightswood Congregational Church
I report on the accounts for the year ended 31 December 2024 set out on pages five to thirteen.
Respective responsibilities of trustees and examiner
The charity's trustees are responsible for the preparation of the accounts in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). The charity's trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the Accounts Regulations does not apply. It is my responsibility to examine the accounts as required under Section 44(1)(c) of the Act and to state whether particular matters have come to my attention.
Basis of the independent examiner's report
My examination was carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations 2006. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts.
Independent examiner's statement
In connection with my examination, no matter has come to my attention :
-
(1) which gives me reasonable cause to believe that, in any material respect, the requirements
-
to keep accounting records in accordance with Section 44(1)(a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and
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to prepare accounts which accord with the accounting records and to comply with Regulation 8 of the 2006 Accounts Regulations
have not been met; or
- (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Fellow of the Association of Chartered Certified Accountants Brett Nicholls Associates Herbert House 24 Herbert Street Glasgow G20 6NB
Date: .............................................
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Knightswood Congregational Church
Statement of Financial Activities for the Year Ended 31 December 2024
| 2024 Unrestricted funds Notes £ INCOME AND ENDOWMENTS FROM Donations and legacies 2 23,275 Other trading activities 3 29,502 Investment income 4 10 Other income 5 - Total 52,787 EXPENDITURE ON Charitable activities 6 Church and Community Activities 91,057 NET INCOME/(EXPENDITURE) (38,270) RECONCILIATION OF FUNDS Total funds brought forward 366,113 TOTAL FUNDS CARRIED FORWARD 327,843 |
2023 Total funds £ 26,736 28,714 - 90,915 146,365 70,279 76,086 |
|
|---|---|---|
| 290,027 366,113 |
||
CONTINUING OPERATIONS
All income and expenditure has arisen from continuing activities. This statement of financial activities includes all gains and losses recognised in the year. Comparative figures for the previous year by fund type are shown in note 11. The charity's funds were all unrestricted in both years.
The notes on pages 7 – 13 form part of these financial statements
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Conwtgattonal Chur 8818n¢x Sheet 31 Dwmbor 2024 2024 iknrestrl¢trd funds 203 Total fvndB FIXED ASS Ta19 a$sels 12 215 CURFIENT A88Ers Cash at nk 330.181 ,219 CREDIT¢JRS unts falllro viLhin •Ye•r 13 12,SS3} (870) NEf CURRENT ASSETS 327,628 865,349 TOTAL A5$s LESS ¢URRETr UABLMES 327,843 366,113 NEf ASS8 327.843 FUNDS Unrostrt¢tsd fvnd8." GewMI fvnd LwJacy- M Huntèr Doslgnaled Missi¢x Fvr D8signaled FellrN4thlp Fu Designaled lId[w & Fabts FL1 Designalod Fix Atsts 14 28>,910 20,304 1165 645. 13,604. 215 326,987 20,304 3,108 1,366 13,604 . 7e4 TOTAL FUN08 The financi81 818er9 wert &pproved by ts Bryd ol Tnthe8 aTKI atthrfwj and We 4ortsY on rts b9halF The noteson py 7- 13 fom) part ofthe* Stalen1
Knightswood Congregational Church
Notes to the Financial Statements for the Year Ended 31 December 2024
1. ACCOUNTING POLICIES
General information
Knightswood Congregational Church ("the charity") is an unincorporated association and governed by its constitution. It was registered as a charity in Scotland (registered number SC017155) on 30 August 1955. Its registered address is 612-14 Dunterlie Avenue, Glasgow, G13 3BA.
Basis of preparing the financial statements
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities and Trustee Investment (Scotland) Act 2005. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.
The financial statements are prepared on an accruals basis, and on a going concern basis, in accordance with: - the Charities and Trustee Investment (Scotland) Act 2005;
-
Regulation 8 (Statement of account - Fully accrued accounts) of The Charities Accounts (Scotland) Regulations 2006;
-
the Financial Reporting Standard applicable in the UK and Republic of Ireland, published in March 2018 ("FRS 102"), to the extent that it applies to small entities and public benefit entities;
-
'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland, published in October 2019 (FRS 102)' ("the Charities SORP");
-
UK Generally Accepted Accounting Practice; and
-
the historical cost convention.
The charity meets the definition of a public benefit entity under FRS 102.
Assets and liabilities are initially recognised at historical cost or transaction value, unless otherwise stated in the relevant accounting policy.
The financial statements are presented in UK sterling, which is the charity's functional currency, and rounded to the nearest pound.
There have been no changes to the basis of preparation this financial year or to the previous financial year's financial statements.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Cash at bank and in hand
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings - 20% on cost
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continued...
Knightswood Congregational Church
Notes to the Financial Statements - continued for the Year Ended 31 December 2024
1. ACCOUNTING POLICIES - continued
Tangible fixed assets
Computer equipment - 20% on cost
Land and buildings - The Trustees elected not to charge depreciation on the Manse or the land at Fifth Avenue. The manse was sold in the 2023 year for £345,000, which was in excess of the carried value of £250,000.
In addition to those held in the Balance sheet, the church also owns the Church, land and halls at Dunterlie Avenue, which has a reinstatement value of £1million. There is no reasonable basis for valuing the church.
The land on which the church is situated is not valued by the trustees until such time as there is a requirement to sell or otherwise utilise it.
Taxation
Knightswood Congregational Church is a charity within the meaning of Section 467 of the Corporation Tax Act 2010. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 of Part 11 of the Corporation Tax Act 2010 and section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that such income or gains are applied for charitable purposes only.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Financial instruments
The charity has financial assets and financial liabilities that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
2. DONATIONS AND LEGACIES
3.
| Donations & FWO Gift aid Open Plate OTHER TRADING ACTIVITIES Fundraising events Hall Hire Manse Rent |
2024 £ 16,963 4,583 1,729 23,275 2024 £ 9,182 20,320 - 29,502 |
2023 £ 23,718 - 3,018 |
|---|---|---|
| 26,736 | ||
| 2023 £ 6,330 17,990 4,394 |
||
| 28,714 |
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Knightswood Congregational Church
Notes to the Financial Statements - continued for the Year Ended 31 December 2024
| 4. | INVESTMENT INCOME | |||
|---|---|---|---|---|
| 2024 | 2023 | |||
| £ | £ | |||
| Bank interest | 10 | - | ||
| 5. | OTHER INCOME | |||
| 2024 | 2023 | |||
| £ | £ | |||
| Gain on sale of tangible fixed assets | - | 90,915 | ||
| 6. | CHARITABLE ACTIVITIES COSTS | |||
| Direct | Support | |||
| Costs (see | costs (see | |||
| note 7) | note 8) | Totals | ||
| £ | £ | £ | ||
| Church and Community Activities | 90,097 | 960 | 91,057 | |
| 7. | DIRECT COSTS OF CHARITABLE ACTIVITIES | |||
| 2024 | 2023 | |||
| £ | £ | |||
| Staff costs | 41,942 | 37,772 | ||
| Sundries | 614 | 472 | ||
| Congregational Federation Contributions | 491 | 1,095 | ||
| Insurance - Church | 5,499 | 5,258 | ||
| Repairs & Maintenance - Church | 14,581 | 2,763 | ||
| Repairs & Maintenance - Manse | - | 1,858 | ||
| Special Collections | 2,066 | 1,964 | ||
| Cleaner | 3,699 | 2,541 | ||
| Events & Panto Costs | 137 | 747 | ||
| Bank Charges | 16 | - | ||
| Church Utilities | 17,056 | 12,779 | ||
| Fellowship | 741 | 220 | ||
| Professional Fees | 1,544 | 232 | ||
| Office and IT | 1,162 | 1,160 | ||
| Depreciation | 549 | 548 | ||
| 90,097 | 69,409 | |||
| 8. | SUPPORT COSTS | |||
| Finance | ||||
| £ | ||||
| Church and Community Activities | 960 |
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Knightswood Congregational Church
Notes to the Financial Statements - continued for the Year Ended 31 December 2024
8. SUPPORT COSTS - continued
| 2024 | 2023 | |
|---|---|---|
| £ | £ | |
| Accounting - IE Fee | 960 | 870 |
9. TRUSTEES' REMUNERATION AND BENEFITS
During the year payments of the stipend and benefits totalling £41,942 were made to the minister (2023: £37,772)
Trustees' expenses
Included in salaries and wages is an allowance for expenses and other costs incurred by the Minister amounting to £5,544 (2023: £5,220).
| 10. STAFF COSTS Wages and salaries Other pension costs The average monthly number of employees during the year was as follows: Minister No employees received emoluments in excess of £60,000. 11. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES INCOME AND ENDOWMENTS FROM Donations and legacies Other trading activities Other income Total EXPENDITURE ON Charitable activities Church and Community Activities NET INCOME RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
2024 2023 £ £ 40,296 36,432 1,646 1,340 41,942 37,772 2024 2023 1 1 Unrestricted funds £ 26,736 28,714 90,915 146,365 70,279 76,086 290,027 366,113 |
|---|---|
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Knightswood Congregational Church
Notes to the Financial Statements - continued for the Year Ended 31 December 2024
12. TANGIBLE FIXED ASSETS
| TANGIBLE FIXED ASSETS | |||
|---|---|---|---|
| Fixtures | |||
| and | Computer | ||
| fittings | equipment | Totals | |
| £ | £ | £ | |
| COST | |||
| At 1 January 2024 and 31 December 2024 | 1,108 | 1,633 | 2,741 |
| DEPRECIATION | |||
| At 1 January 2024 | 700 | 1,277 | 1,977 |
| Charge for year | 222 | 327 | 549 |
| At 31 December 2024 | 922 | 1,604 | 2,526 |
| NET BOOK VALUE | |||
| At 31 December 2024 | 186 | 29 | 215 |
| At 31 December 2023 | 408 | 356 | 764 |
In addition to the assets held in the balance sheet, the Church also owns the Church and halls at Dunterlie Avenue, which has a reinstatement value of £1million. There is no reasonable basis for valuing the Church.
The land on which the Church is situated is not valued by the trustees until such time as there is a requirement to sell or otherwise utilise it.
13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Taxation and social security Accrued expenses |
2024 £ 1,593 960 2,553 |
2023 £ - 870 870 |
|---|---|---|
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Knightswood Congregational Church
Notes to the Financial Statements - continued for the Year Ended 31 December 2024
14. MOVEMENT IN FUNDS
| Unrestricted funds General fund Legacy - M Hunter Designated Mission Fund Designated Fellowship Fund Designated Building & Fabric Fund Designated Fixed Assets TOTAL FUNDS Net movement in funds, included in the above are as Unrestricted funds General fund Designated Mission Fund Designated Fellowship Fund Designated Fixed Assets TOTAL FUNDS Comparatives for movement in funds Unrestricted funds General fund Legacy - M Hunter Designated Mission Fund Designated Fellowship Fund Designated Building & Fabric Fund Designated Fixed Assets TOTAL FUNDS |
Net movement At At 1/1/24 in funds 31/12/24 £ £ £ 326,967 (37,057) 289,910 20,304 - 20,304 3,108 57 3,165 1,366 (721) 645 13,604 - 13,604 764 (549) 215 366,113 (38,270) 327,843 366,113 (38,270) 327,843 follows: Incoming Resources Movement resources expended in funds £ £ £ 52,710 (89,767) (37,057) 57 - 57 20 (741) (721) - (549) (549) 52,787 (91,057) (38,270) 52,787 (91,057) (38,270) Net Transfers movement between At At 1/1/23 in funds funds 31/12/23 £ £ £ £ 250 76,717 250,000 326,967 20,304 - - 20,304 3,108 - - 3,108 1,449 (83) - 1,366 13,604 - - 13,604 251,312 (548) (250,000) 764 290,027 76,086 - 366,113 290,027 76,086 - 366,113 |
|---|---|
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Knightswood Congregational Church
Notes to the Financial Statements - continued for the Year Ended 31 December 2024
14. MOVEMENT IN FUNDS - continued
Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Designated Fellowship Fund Designated Fixed Assets TOTAL FUNDS |
Incoming Resources Movement resources expended in funds £ £ £ 146,228 (69,511) 76,717 137 (220) (83) - (548) (548) 146,365 (70,279) 76,086 146,365 (70,279) 76,086 |
|---|---|
15. RELATED PARTY DISCLOSURES
Other than those described in Note 9, there were no related party transactions for the year ended 31 December 2024.
16. PURPOSE OF UNRESTRICTED FUNDS
General Fund - This is an unrestricted Fund for the day to day transactions of the church including normal fabric repairs and maintenance.
M Hunter Legacy - This represents a legacy left by the late
for the benefit of the church.
Designated Fixed Asset Fund - This represents the net book value of the charity's tangible fixed assets.
Designated Mission Fund - This is a designated fund covering the local mission Outreach.
Designated Fellowship Fund - This is a designated Fund covering the Church’s social interaction and its benevolence.
Designated Building & Fabric Fund - This is a designated fund covering church fabric and roof repairs.
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