Charity registration number SC022180 (Scotland) Diocese of Aberdeen and Orkney Annual rèport and financial statements for the year ended 31 October2024 OKKese of Aberdeen & (hkney AGcounts fI6d9s89-793543a8-g9FeSa2d7ebSf1b71 Page.. 1133
Diocese of Aberdeen and Orkney Logal and administrative infom)ation Trusiees IApFo1n 8 Ocer 20241 IAppointed 1 August 20241 IApwinted 2 March £0241 (Appointed 1 March 20251 IApwinted 1 March £0251 (Appointed 1 March 20251 Charity nurnb•r (Scotlandl SC022180 Registered office The Dioce3e of Aberdeen and Orkney Univeisily af Aberdeen Marischal College, Brc*d Street Aberdeen AB101YS Auditor Hendtsrson Loggi8 LLP The Stamp Offi¢e Level 5 10- 14 Walarloo PLqc8 Edinburgh EH1 3EG Bankers Virgin Montry 62 Union Street Aberdeen AB101WD Solioitors Ledingham Chalmers Johnslone Hous 52-54 Rose Street Aberdeen A8101HA Invastmont advlBors Brèwin Dolphin 23 Rubislaw Terrace Aberdeen AB101XE DhKa88 ofAberdeen & Orthey Accounts.pfl6dc8?-193S4388.99fe4a2d[8bsflts7] Page.. 2 133
Dlocese of Aberdeen and Orkney Contonts Page Truslees, report Statement of Trustees, responsibilities Independent auditoys report Stalemenl of financial activities Balance sheel 10 Statement of cash flowg 11 Notes to the financlal slatements 12-29 OKKese of Aberdeen & (hkney AGcounts fI6d9s89-793543a8-g9FeSa2d7ebSf1b71 Page.. 3 133
Dlocese of Aberdeen and Orkney Trusteès. report for the year ended 31 October 2024 The Trustees present their annual report and financial statements for the year ended 31 Cktober 2D24. The financial statements have been prepared in accordance with Ihe accounting polities set out in note 1 to the financial statements and comply w((h the Diocesan Constitution, the Charities and Trustee Inveslment (Scotlandl Act 2005. the Charities Accounts (Scollandl Regulations 2006 (8s amended) and "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financlal Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021" leffeCve 1 January 20191. Obj•ctlves and atttivities The aim of the Diocese is to provide leadership, encouragement, guidance. training and counsel to dergy and congregalions lo enable them to maximise the effectiveness of their mission to their local communities through parti¢ipalion in Christian r&hip and provigion of pastoral support. Thg Diocèsè's fomal objgctive, as approvèd by th8 Offiee of th8 Scottish Charity R&gulator IOSCRI, is °th8 advaneemènt of r8ligion" The main finanttial athvities of the Dioeese throughout Ihe year were the support of Chsrges Ichurches and congregalionsl by stipend support and other grants from the Province and the Diocese, the provision of rinancial assistance to clergy 2nd lay persons for their Irainirkg and development, and (he pursuance of mi¥sion projects in ar&as of growth potential. Achievements and performance The Bishop of Edinburgh hav'.n com ear as Acting Bishop, the role was taken on from 1 November 2023 by a retirgd bishop who had reviousl be8n appointed as Assistant Bishop with respDnsibility for the Orkney and Shet13nd Islands was succeeded on 1 August as Acting Bishnp hy the Bishop of St Andrews, Dunkeld and Dunblaiie, knho was appoinled Commissary by Bishop n her retijrn lo office on 8 October 2024. leted a Three curates were ordained, one in the sumrner and two in the autumn. Fdlowing the reliremerst of a numt)er of clergy Ihere are a significant number ol vacancies wlhin the Diocese and a pipeline of o.'dinands Is a hopeful sign. A property has been purchasèd by the Laurie Fund and il is hop8d that this will lacilital8 an appoinlment of a priest for Longside and the Buchan area being made. The Advisor for Christian Life continues to carry out development work as well as actirfjg as a k)curn priest and th8 Diocèsan Nèt Zaro Group hav& bèèn acl'vè within thé Dioc*s8, raising 8war6nasg and gathèring basèlln6 inFormation to réport to thè Pmvincial Nél Zèro Group. Sadly one of th8 churches within tho Dioc&se (St Luke's Cuminesiownl was deconsBcrat8d during the year, consequent on the congregat9n having dwir¢dled post pandemic to unsustainable Trumbers. The building now fails to the DK)cesè to mainiain, develop or dispose of. Financial review The results for the Diocese before gains and losses on the Diocesan inv&stment portfollo is a surplus of £78,147 12023 deficit of £44,772), which comprises a deficit of £169,447 12023 deficit of £34,330> on unresirictea Yun(Js an(J g surplus ot L247.5S412023 oeficit oi ie(J tunds. Ine cuireni year's signrficant surplus arose in tho largast part from a grant from and the Dioce&o is grateful for his generosity. This grant was to support the th8 purchase of a rectory In Buchan. entra TThe Diocese Is also E)rtunate In naving tne support or Ene Dr Jonn Anoemn Trust. to wnicn appiicaiion can De made for assislance with a speofic projecl or objective, and without whose help such aclivilies might have to be curtailed, delayed or abandoned. The fund is administered by a flmi of Solicitors in Aberdeen and whose incoma is d8riv&d from agricultural land in tho CNden Bay ar62. In th6 yèar to 31 October 2024, the Diocesa rsived a 9rant of £37,750 {2023 - £37,750) for a variety of initiatives including stipend support and Irdining. DhKa88 ofAberdeen & Orthey Accounts.pfl6dc8?-193S4388.99fe4a2d[8bsflts7] Page.. 4 133
Dlocese of Aberdeen and Orkney Trusteg$' rgport l¢ontSnugdl for the year endod 31 Octobgr 2024 The Diocese is also gr8leful for support from the Benefact Trust, the umbrella charitable organisalion which derives its income from the Ecclesiastical lftsurance Group, which gave a grant in the current year of £5,261 12023 - £6,117) to create clergy recruitment materials that will be used by the Diocese as a whole and can be used by individual congregations when writing congregational profiles and recruiling for posts. As al 31 October 2024 the total funds of the Diocese amounted to £5,183,675 12023 - £4,567,437), which comprises unrestricted funds of £3,737,633 12023 - £3.584,2141 and restricted funds of £1,446,D4212023 - £983,223>. Reserves policy 11 is the policy of the Diocese to mainlain unrestricted reserves at a level sufficient to meet planned expenditure requirements for the next year. Based on the core budget including Provincial quota, this amounts 10 £365,000. The Diocese has traditionally monitored the portion of unrestricted fund balance arising from accumulated surpluses and unrealised gains or losses on inveslmenls. The TrLJStees will keep ils reserves policy under review going forward bul are comfortable at this tinie, sufficient unrestricted reserves are held. Funds The Dlocesan Fund {Incorporatlng the Crulckshank and Gordon Funds) The Cruickshank Fund was inaL¢gumled in 1983 on the death of Mr JSR Cruickshank, Advocate in Aberdeen, and a former Chancellor of the Diocese. He bequeathed the bulk of his Estate lo the Diocese without any conditions attached. The Gordon Fund came to the Diocese in 1990 as a bequest from the late Colonel FW Gordon with no slipulalions as lo ils use or purpose. Following approval by Synod, the Gordon Fund was amalgamated with the Diocesan Fund on 1 November 2002 and the Cruickshank Fund amalgamated with the joint fund following the Diocesan Synod on 12 March 2011. Restricted Funds The Diocese benefits from fundlng left to the Diocese for speclfic purposes as prescribed by the donor. The main ongoing restricted fund is the William Laurie Fund which conslsts of thr8e elements being the B uilding & Maintenance Fund, the Missionary Fund, and the House Gift. Investment policy Following a review of its investment Portfol which conduded in 2022, the Diocese agreed to grathally reinvest funds into the Scottish Episcopal Church Unil Trust ISECUTI pool, in order lo rnove lowards consisloncy with Ihe ethical investment policy adopted by General Synod in June 2022. Major risks The Trustees keep the major strategic, business and operational risks which the DI0Se faces under review and can confirm that systems are established lo enabl& regular reports lo be produces so that the necessary steps can be taken lo lessen these risks. The trustees intend lo strengthen and formalise these systems. The Diocesan Risk Register will be developed to refiect recommendations made by the Province as lo the formal and content of Diocesan Risk Registers. This was not considered lo be a high priority for the period covered by this report. Plans for futurè pèriods The Diocese will continue with its current aclivib'es al present. The development of further detailed future plans will be the subject of discus&on now that the Bishop's suspension has been lifted. OKKese of Aberdeen & (hkney AGcounts fI6d9s89-793543a8-g9FeSa2d7ebSf1b71 Page.. 5 133
Dlocese of Aberdeen and Orkney Trusteès. report Iconlinuad) for the year ended 31 October 2024 Structure govgrnante and management The Diocese of Aberdeen and the Diocese of Orkney We incorporated by long usage into the Scottish Episcopal Church in 1690 and be(xme united in 1865 under the name, Style anij title of the United DicKese of Aberdeen and Ort(ney. The "parenf organis8tion of the Diocese ol Aberdeen and Orkney Is The General Synocl of the Scottis Episcopal Church There are seven Dioceses of the Scottish Episcopal Church. The General Synod and thè seven Di0seS are separate rwJistered charities. The Diocese of Aberdeen and Orkney 1.the Diocese'l is constituted uneer, and govemed by, the Canons of the Scotbsh Episcopal Church. The day-lo-day operation of the Diocese has been conducted under the current Q)verning Regulations lof the Synod of the United Diocese of Aber(leen and Orkney} since 16 October 2016, when the Consb'tution of the Synod of the Diocese of 2012 was repealel and tF new document proposed. seconded and passed. The Governing Regulations We approved, confimied 8nd ratified by the Bishop on 18 October 2016. For convenience. they are referred to as 'The Diocesan Constilulion 2016" The Truslèes who served during the ye2r and up to the date of signalure of the financial statements were.. IApwinted 8 October 20241 (Apwintèd 1 August 20241 (Appointed 1 November 2023 and rgsigngd 31 July 2024) {Retired 1 March 20251 IR&tir@d 2 March 20241 IRelired 31 October 20241 IResigned 6 February 20241 {Resigned 19 February 20251 (Resigned 9 December 20241 (Appointed 2 March 20241 (Apwinled 1 March 2025) (Appjinled 1 March 20251 {ApsK)inted 1 March 20251 Rècruitment and appointment of trustees The Diocese Consliiution. last updated In 2016, cfIrmS the Standing Committee are the Diocese's Charity Twslees. Thè Constitution sets out th21 thè StaTrding Commiitee is comprised ol the Bishop, the Dean, the Registrar, the HorK)rary Tre25urer and the Honorary Dioeesan Secrètary all ex4)fficlos.' the conveiors of the pendant boards ol tha Standing Committee,. and fivo mombors oloctgd by Synod. The Standing Commi110o may also cn-opl additional members to fill vacancies. Organisational structure The Finance and Property Board IF&PI has tBsponsibility for the gen8ral administrat'on ol the Diocesan finances. A representative of the Diocesan MissM)r¢ Board should sil on F&P, to ensure that the two mairn Boards of thè Diocese are involved irn financial decisions. The day-lo-day financial records Ère maintained by the Assistant Treasurer. DhKa88 ofAberdeen & Orthey Accounts.pfl6dc8?-193S4388.99fe4a2d[8bsflts7] Page.. 6 133
Dlocese of Aberdeen and Orkney Trusteès. report Iconlinuad) for the year ended 31 October 2024 Induction and training of trustees The Charity Trustees have confidence in the oxperience and ability of the Trustees to administer the adivilies of the Diocese. Induction and training will be considered on an ongoing basis, particularly in the event of a new Trustee being elecEed or appointed. Disclosure of Informatlon to aud5tor Each of the Trustees has confirmed that there is no information of which they are aware which is relev8nt to the audit, bul ol which the auditor Is unaware. They have further confirmed that they have tsken approprate steps to Iljenlify such relevant information ano to esiat)Iish tnat Ine au(Jitor is aware of such Information. Tru8to9 Trust80 Date.. DhKa88 ofAberdeen & Orthey Accounts.pfl6dc8?-193S4388.99fe4a2d[8bsflts7] Page.. 7 133
Dlocese of Aberdeen and Orkney ststement of Truslg9s' re$ponsSbllitles for the year endod 31 Octobgr 2024 The Truslees are responsible for preparirsg the Trustees. Report and the financial statements in aczordance with applicable law and United Kingdom Accounting Standards Iuniled Kingdom Generally Accepted Accounting Praclicel. The law applicable lo charities in Scotland requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the slate of affairs of the Charity and of the incoming resources and application of resources of the Charity for that year. In preparing these financi81 ststements. the Trustees are required to.. select suitable accounting policies and then apply them consislenly; - observe the methods and principles in the Charities SORP- make judgements and estimates that are reasonable and prudent., stale whether applicable accounting standards have been followed. Subject to any material departures disclosed and explained in the financial stalemenls., and prepare the financial slatements on the going concern basis unless it is inappropriate to presume that the Charity will eonlinue in operation. The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable aecuracy at any time Ihe financial position of the Charity and enable them lo ensure thal the financial statements comply with the Charities and Trustee Investment Iscollandl Act 2005, the Charities Accounts (Scotland) Regulalions 2006 las amended) and the provisions of the Constitution. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and deleclion of fraud and other irregularities. OKKese of Aberdeen & (hkney AGcounts fI6d9s89-793543a8-g9FeSa2d7ebSf1b71 Page.. 8 133
Dlocese of Aberdeen and Orkney Indopendgnt audltorfs roport to the Trusteos of Diocose of Abgrdoen and Orkney Opinion We have audited the financial statements of DI0$e of Aberdeen and Orkney Ilhe 'Charily'l for the year ended 31 October 2024 which comprise the statement of financial aclivits'es, the balance sheet, the stalemenl of cash flows and notes to the financial statements, including significant accounb'ng policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Ac(xJunting Standards, including Financial ReFK)rting Standard 102 The Financial Reporbng Standard 8ppIic8ble in the UK and R&public of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial ststements: give a true and fair view of the slate of the Charity's affairs as al 31 October 2024 and of its i ncoming resources and application of resources, for the year Ihen gnded., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practi., and have been prepared in accordance with the requirements of the Charities and Truslee Investment (Scollandl Act 2005 and regulation 8 of the Charities Accounts (Scollandl Regulations 2006 las amended). Basis for oplnion We conducted our audit in accordance with International Slaridards on ALJdiling IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further deseribed in the Auditorfs responsibilities for the audit of Ihe financial statements section of our report. We are independent of the Charity in accordance with the ethical requifemenls that are relevant lo our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evldence we have obtained is SLrfFicienl and appft)priate lo provide a basis for our opinion. Conclusions relating to goin9 concern In auditing the finartcial Statements, we have concluded that the Trustees. use of the going ¢oncem basis of accounting in the preparalion of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertaiftties relating lo events or con(Jitions that, indivi(Jually or o)Ilectively, may cast significant doubt on the Charity s at)ility to continue as 8 going concern for a period of at leasl e1ve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect lo going concern are described in the relevant sections of this report. Other information The other information comprises the informats'on included in the annual report other than the financial stslemenls and our auditor's report theOn. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other informatB)n and we do not express any form of assurance conclusion ther&on. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misslaled. If we identrfy such material inconsistencies or apparent material misstatements, we are rtquired to determine whether this gives rise lo a material misstatement in the financial ststements themselves. If, based on the work we have perfomed, we conclude that there is a material misstatement of this other informats'on, we are requi to report that fact. We have nothing to report in this regard. OKKese of Aberdeen & (hkney AGcounts fI6d9s89-793543a8-g9FeSa2d7ebSf1b71 Page.. g 133
Dlocese of Aberdeen and Orkney Indopendgnt audltorfs roport l¢ontlnugd} to the Trusteos of Diocose of Abgrdoen and Orkney Matters on which we are required to report by exception We have nothing to reFX)rt in respect of the following matters in relation to which the Charities AccL)unts (Scollandl Regulations 2006 las amendedl require us trj report to you rf, in our opinion-. the infomalion given in the fin8nci81 statements is inconsistent in any material respect with the Trusteeg, port,. or proper accounting records have not been kept., or tt)e financial statements are not in agreement with the accounting records,. or we have nol received all the information and explanations we require for our audit. Responslbllltles of Trus¢g0$ As explained more fully in the slalemenl of Trustees. responsibilities, the Trustees are responsible for the preparation of the financial slalements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary lo enable the pr¶ts"on of financi81 statements that are free from material misstalemenl. whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the Charity's ability lo continue as a going concern, disclosing, as applicable. matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to cease operalions, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial ststements We have been appointed as auditor under section 4411 Ilcl of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objedives are lo obtain reasonable assurance aboul whether the financial stslements as a whole are free from material misstalemenl, whether due to fraud or error, and to issue an auditrirfs report that includes our opinion. Reasonable assurance is a high level of assuran bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatemenl when it exists. Misslatements can arise from fraud or error and are considered material if, individually or in the aggregate, they cou5d reasonably be expected to influence the economic decisions of Ltsers taken on the basis of these financial ststemenls. Irregu18rities, including fraud. are instances of non-eompliance with 18ws aftd gUlatiOns. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities. including fraud. The extent lo which our procedures are capable of detecting irregularitie5. Including fraud, is detailed below.. As part of our planning process.. We enquired of management the systems and controls the Charity has in pla, the areas of the financial statements that are most susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. Management informed us that there were no instances of known. suspected or alleged fraud., We obtained an understanding of the legal and regulalory frameworks applicable to Ihe Charity. We determined that Ihe following were most relevant.. Heallhy and safety, OSCR requirements, Data Protection Act 2018, employment law (including payroll and pension gUlationS1, and compliance with the Diocesan Constilulion, the Charities and Trustee Investments (Scotlandl Act 2005 and the Charities Accounts Regulations 2006., We considered the Incentives 8nd opportunities that exist in the Charity, including the extent ol rTltlFI(sgeiTient bids, wliiLli yreberil ts yolEiitial for iriegularitiets and fraud tu be perpelr(sled. dnd t¢silorEd our risk assessment accordingly., and Using our knowledge of the Charity, together with the discussions held with management al the planning stage, we formed a conclusnn on the risk of misstatement due to irregularities including fraLsd and tailored our procedures according to thls risk assessment. OKKese of Aberdeen & (hkney AGcounts fI6d9s89-793543a8-g9FeSa2d7ebSf1b71 Page.. 10133
Dlocese of Aberdeen and Orkney Ind•p¢ndgnt auditor's report Icontinuedl to the Trustees of Dlocese of Aberdeen and Orkney The key procedures we undertook to detect irregularilies including fraud during the course of the audit Includ.. Inqulry of management aboul any known or suspected Instances of non-mpli8nce with laws and regulations and fraud", Reviewing mlnutes of those charged wllh govemance., Reviewing the Charlty's pollaes ana procedures In relatbon to health and safety, employment law and dala protection., Reviewing legal and professlonal expendlture incurred in the year., Reviewing news articles and pres5 releases., Challenging assumptions and judgements made by Trustees in their application of the Charity's accounting poSicies, about th2 carrying amount of assets and liabilities that are not readily apparent from other sources- Auditing the risk of management ovèrride of controls. including through testing journal entries and olher adjustments for approprialen8SS. ¢Ing to the inherent limitations of an audit. there is unavoKlable risk that some material miss1alemls in Ihe rinancial statements may not be detected. even though the audit is properly planned and perform&d in accordance witrt Ihe ISAS IUKI. For instance, the further removed non-complian is from the evenis and transaclions reflected in the financial slatemenls, the less likely the auditor is lo become aware of it or lo recc¥Jnise the non-compliance. A further description of our responsibilities is av8ilable on the Financial Rèporhng Council's website 8t-. htlps'.li wv¥w.frc.org.uklauditorsresponsibilities. This description forms part of ojr auditorfs report. U¥0 of our roport This report is made solely to the Charity's Trustees, as a body, in accordance with ragulalion 10 of tha Charities Accounts (Scollandl Regulations 2006. Our audit work has been undertaken so that we might stale to the Charity's Truslees those matters we are required to stale to them in an auditor's report and for no other purSe. To the fullest Èxtent permitted by law, do not accept or assume responsibility lo anyone other than the Charity and the Charity's Trustees as a b¢)Jy. lor our audit work. for this retx)rt. or for the opinions we have formed. Henderson Loggie LLP Isenlor Statutory Audltor) for and behalf of Henderson Loggie LLP Chartered Accountants StatOry Auditor The Stsmp Office Level 5 10 - 14 Waterloo Place Edinburgh EH1 3EG Henderson Logoie LLP is eligible for appointment as auditor of the Charity by virtue of ils eligibility for appointment as audilor of a company under secb'on 1212 of the Companies Act 2006. DhKa88 ofAberdeen & Orthey Accounts.pfl6dc8?-193S4388.99fe4a2d[8bsflts7] Page.. 11133
Dlocese of Aberdeen and Orkney Statgment of financial activtias Includlng Income and expendltur for th8 year ended 31 Octobgr 2024 Unrestricted Restricted funds funds 2024 2024 Total Unrestricted Restricted funds funds 2023 2023 Total 2024 2023 Notes Income from: Donations and legacies Charitable activities Investments 130.267 162,445 84,197 348,250 478.517 162.445 115,261 116,287 173.029 81,582 58,933 175,220 173.029 107,706 31,064 26,124 Total income 376,909 379,314 756,223 370,898 85,057 455,955 Expenditure on- Raising funds Charitable activities 13,890 532,466 13,890 664.186 13,602 391,626 13,602 487,125 131,720 95,499 Total expondlture 546.356 131,720 678.076 405,228 95,499 500,727 Nel gainslllossesl on investments 13 376,38g 161,702 538,091 143,5621 16,648 126,9141 Net Incom011oxp0ndSturo1 206,942 409,296 616,238 177,8921 6,206 (71.6861 Transfers between funds (53.5231 53,523 13,0351 3,035 Net movement in funds 10 153,419 462,819 616,238 180,9271 9,241 (71.6861 Reconclllatlon of funds: Fund balances al 1 November 2023 3.584.214 983,223 4,567,437 3,665,141 973,982 4,639,123 Fund balances at 31 October 2024 3.737.633 1.446,042 5,183.675 3,584,214 983,223 4,567,437 The ststemenl of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. OKKese of Aberdeen & (hkney AGcounts fI6d9s89-793543a8-g9FeSa2d7ebSf1b71 Page.. 12133
Dlocese of Aberdeen and Orkney Balanc• shgot as at 31 October 2024 2024 2023 Notes Fixed assets Tangible 2ssets Investrnents 15 16 1,177,587 3,778.788 826.558 3.255.708 4,956,375 4,082.266 Current assets Debtors falling due after one year Debtors falling due within one year Cash at bank and in hand 17 17 91,337 11,172 152,007 295.749 222,846 254,516 518.695 Cr•ditor¥- amounts lalllng duè within ona year 18 127,216) (33,4241 Net current assets 227,300 485.171 Totsl assets less current liabilities 5,183,675 4,567.437 Net as$els èxcluding pension liability 5,183.675 4,567.437 Ngt assols 5.183,675 4,567,437 The fund$ of tho ¢harity Restricted Incotne funds Unreslricled funds 20 1,446,042 3.737.633 983.223 3,584.214 5,183,675 4,567.437 The financial ststemenls were approved by the Trustees on Trustee Trustee 10- DhKa88 ofAberdeen & Orthey Accounts.pfl6dc8?-193S4388.99fe4a2d[8bsflts7] Page.. 13 133
Dlocese of Aberdeen and Orkney ststement of cash flows for the year endod 24 Octobgr 2024 2024 2023 Notes Cash flows from operating activltle$ Cash generated fromllabsorbed by) operations 28 150,398 1224.2631 Investing aetivities Purchase of tangible fixed assets Purchase of investments Proceeds from disposal of investments Investment income received {351,5091 {731,0351 734,786 115,261 {275,0001 {460,7841 372,543 107,706 Net cash used in investing activitios 1232,497) 1255,5351 Net cash used in financing activitigs Net decrease in cash and cash equivalents {82,099) 1479,7981 Cash and cash equivalents al beginning of year 247,714 727,512 Cash and cash equlvalent$ at gnd of year 165,615 247,714 Relating to- Cash al bank and in hand Cash held in investments 152,007 13,608 222,846 24,868 OKKese of Aberdeen & (hkney AGcounts fI6d9s89-793543a8-g9FeSa2d7ebSf1b71 Page.. 14 133
Dlocese of Aberdeen and Orkney NotOS to the flnancial statgmgnts for the year endod 31 Octobgr 2024 Accounting policies Charity information Diocese of Aberdeen and Orkney is a is a Charity registered in Scotland. The registered office is University of Aberdeen, Marischal College, Broad Street, Aberdeen, AB10 1YS. 1.1 Accounting convention The financial statements have been prepared in accordance with the Charity's governing document, the Charities and Trustee Investment IScolland} Act 2005, the Charities Accounts Iscodandl Regulations 2006 las amended), FRS 102 "The Financial ReF)Orting Standard applicable in the UK and Republic ol Ireland" {"FRS 102.1 and the Charities SORP "Accounting and Reporting by Charities.. Statement of Recommended Pracb'ce applicable to charities preparing their accounts in accordance with the Financial Reporb'ng Standard applicable in the UK and Republic of Ireland IFRS 1021" (effective 1 January 20191. The Charity is a Public Benefit Entity as defined by FRS 102. The financial stalerTJents are prepad In sterling, which is the function81 currency of the Charity. Monetary 8mourils in these fin8ncAal statements are rounded lo the nearest £. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are sel out below. 1.2 Going concgrn The finaneial statements have been prepared on a going concern basis. The TrLTStees have considered relevant inft)rm8lion, including the annual budget, forecast future cash flows and the impact of subsequeftl events in making their assessmenl. The Trustees have also taken into consideration the current economic climate in the UK, including the impact of inflation and higher interest rates. Forecast future cash flows have been prepared 18king into account the future fvnding in place and the retums on assets held. Based on these assessments and having regard to the resources availablo lo the Charity, Ihe Trustees have concluded Ihal there is no material uncertainty and that they can continue lo adopt Ihe going concern basis in preparlng ihe annual report and financial statements. 1.3 Charitsble funds Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives. Restricted funds are subject lo speofic conditions by donors or grantors as to how they may be used. The purFM)ses and uses of the reslricled funds are sel out in the notes to the financial statements. 1.4 Income Income is recognised when the Charity is entitled to it after afty performance conditions have been met. the amounts can be measured reliably, and il is it is more likely than not that the eeonomic benefits associated with the incom8 will flow to the Charity. Cash donations are recognised on receipt. Other donations and grants are recognised once the Charity has been notified of the donation or grant, unless pèrformance conditions require deferral of the amount. Income tax recoverable in relation lo donations received under Gift Aid or deeds of covenant is recognised al Ihe time of the donation. Legacies are recognised on CeIpt or otherwise if the Charity has been nottfied of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as 8 contingent asset. 12- OKKese of Aberdeen & (hkney AGcounts fI6d9s89-793543a8-g9FeSa2d7ebSf1b71 Page.. 15133
Dlocese of Aberdeen and Orkney NotOS to the flnancial statgmgnts (Continued) for the year endod 31 Octobgr 2024 Accountlng pollcies {contlnuedl Quota income from Charges is rewgnised in line with the opening Income paragraph and is consistent with section 5.8 of the Charities SORP IFRS 1021. Income from interest and dividends is recognised when its receipt is probable and the amount receivable can be measured reliably. Dividends are accrued when the DI0se.S right lo receive payment is established. 1.5 Expenditure Expenditure is accounted for on an accruals basis and includes irrecoverdble VAT where applicable. Expenditure is recognised where there is 8 legal or constructive obligation lo make payments lo third parties, it is probable that the setllemenl will be required, and the amoL¢nt of Ihe obligation can be measured reliably. Raising funds include amounts paid lo the Investrnenl Fund Managers for the management of the investment portfolio. Charitable expenditure comprises those costs incurred by the Diocese in the delivery of its activities and services for ils beneficiaries. Grants payable are granls awarded from the various funds to ChL¢heS and individuals as appropriate. Grants offered subject lo condib'ons which have not been met al the year-end date are noled as a commitmenl but not accrued as expenditure. Governance costs include those costs associated with meeb'ng the constitutional and slalutory requirements of the Diocese. including independent examiner fees. 1.6 Tangible fix8d asséts Tangible fixed assels are initially measured al cost and subsequently measured at cost or valuation, nel of depreciation and any impairment losse5. Depreciation is recognised so as lo write off the cost or valuation of assets less their residual values over their usefLJI live5 on the following bases". Freehold 18nd and buildings Fixtures and fittings No depreciation is applied as detailed below 10-200A stoight line No depreciation has been provided against the book valuè of properties as in the opinion of the Trustees, due lo the long useful economic lives of Ihe properties and their high residual values, any depreoalion charge and resultant accumulated depreciation would be immalorial. In the opinion of the Trusl88s, no impairment of the carrying values has occurred during the year. The gain or loss arising on the disposal of an asset is delemined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial aclivilies. 1.7 Flxed asset Investments Fixed asset investments are inilally measured at Iransikn'on price excluding transacllon costs and are subsequently measured al fair value at each reporting dale. Fair value is the market value al the reporting date. Gains and losses on disFM)sal of investments and movement in market value of investments are charged or credited to the Siatemenl of Financial Activities ISOFA}. Investments nol listed on the Stock Exchange, SEC Units, are included at the year-end value prOVed by SEC. 13- OKKese of Aberdeen & (hkney AGcounts fI6d9s89-793543a8-g9FeSa2d7ebSf1b71 Page.. 16133
Dlocese of Aberdeen and Orkney NotOS to the flnancial statgmgnts (Continued) for the year endod 31 Octobgr 2024 Accountlng pollcies {contlnuedl 1.8 Impairment of fixed assets At each reporting end date, the Charity reviews the carrying amounts of its tangible assets lo determine whether there is any indication Ihal those assets have suffered an impairment loss. If any such indiulion exists, the recoverable amount of the asset is estimated in order to determine the exlenl of the impairment loss lif any). 1.9 Cash and cash equivalonts C85h and Cash equivalents include cash in hand, deposits held 8t call with banks, cash held in investment portfolios. and bank overdrafts. 1.10 Flnanclal Instruments The Charity has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 '01her Finanaal Instruments Issues, of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Charity's balance sheet when the Charity becomes paty to the conlraclual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable righl lo sel off the recognised amounts and there is an intention to setue on a net basis or to realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assets, which inclLJde debtors and rAsh and bank balances, are initially measured al tr8ns8clion price including transaction costs and are subsequently carried 81 ttmortised cost using the effective interest method unless the arrangement eonstitules a fin8nein9 transaction, where the transaction is measured at the present value of the future receipts discounted al a market rale of inte8t. Financial assets classified as receivable within one year are not amortlS8d. Impalrment of financial assets Financial assets are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that. as a result of one or more events that occurred after the initial rect)gnib'on of the finanoal asset, the esbmaled future cash flows have been affected. Basic financial liabilities Basic financial liabilities, including creditors are initially CogniSed at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured èl the present value of the future p8ym&nts discounted at a market r81e of interest. Financial liabilities classrfied as payable within one year are not amortised. Debt instruments are subsequently carried at amottsed c£sst. using the effective Interest rale method. Trade creditors are obligations to pay for goods or services that have been acquired in Ihe ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payrnenl is due within one year or less. IF not. they are presented as n0n.curnt liabilities. Trade creditors are recognised initially at transaction pri and subsequently measured al amortised cost using the effective interest method. Derecognillon of financial liabilities Financial liabilities are derecognised when the Charity's contractual obligations expire or are discharged or cancelled. 14- OKKese of Aberdeen & (hkney AGcounts fI6d9s89-793543a8-g9FeSa2d7ebSf1b71 Page.. 17 133
Dlocese of Aberdeen and Orkney NotOS to the flnancial statgmgnts (Continued) for the year endod 31 Octobgr 2024 Accountlng pollcies {contlnuedl 1.11 Employee beneffts The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed lo lerminale the employment of an employee or lo provide termination benefits. 1.12 Retlrement beneflts The Diocese contributes to a defined benefit pensions scheme, the SEC Pension Fund, which is independently managed by the Pension Fund Trustees. The scheme is subject to formal actuarial valu81ion on 8 triennial basis using the projected unil melhod. This scheme c£Jvers all seven Dioceses of the Scottish Episcopal Church and The General Synod Offi. The assets and liabilities of any one parb'cipant in the scheme cannot be identrfied separately. The provisions of FRS 102 allow employers participating in such schemes lo treat Iheir pension disclosures as if the scheme were a defined contribution scheme. This is the treatment which has been adopted by the Diocesan Trustees in these statements. with Gontribution5 Gharged lo the Statement of FinanGial Activities of the Diocesan General Fund bul no asset or liability appearing on the Balance Sheet. Crltical accounting estlmates and Judgements In the application of the Charity's acoounting policies, thg Trusi&QS are required to make judgements. estimates and assumptions about Ihe carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associaled assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The eslimales and underlying assumptions are reviewed on an ongoing basis. Revisions lo accounting estimates are COgnised in the period in which the estimate is revised Whe the rewsion affects only that period, or in the penod of the revision and future periods where the revision 8ffects both current and future periods. Useful Ilfe of tan9lble flxed assets Tangible fixed assets are depreciated over a period to reflect their estimated useful lives, incorporating an estimate of their residual value_ The applicability of Ihe assumed lives is reviewed annually, taking into account factors such as physical condition, maintenance and obsolescence. Fixed assets are also 8&8essed as to whether there are indicators of impairment and any changes to the residual value. Investment$ Fixed asset investments are initially measured al transition price excluding Imnsaction Costs and a subsequently measured al fair value at each reporting dale. Fair value is the market value at the reporting dale and is obtained from the Charity's experienced investmenl managers for listed investments based on quoted prices on the respective Stock Exchange. Investments not listed on the Stock Exchange, SEC Units, are inclLHJed at the year-end value provided by SEC. 15- OKKese of Aberdeen & (hkney AGcounts fI6d9s89-793543a8-g9FeSa2d7ebSf1b71 Page.. 18133
Dlocese of Aberdeen and Orkney NotOS to the flnancial statgmgnts (Continued) for the year endod 31 Octobgr 2024 Income from donations and legacies Unrestricted Restricted funds funds 2024 2024 Total Unrestricted Restricted funds funds 2023 2023 Total 2024 2023 Donations and gifts Grants 1,889 128,378 5,570 342,680 7.459 471,058 23,172 93,115 23,172 152.048 58,933 130,267 348,250 478,517 116,287 58,933 175,220 Grants General Synod DrAnderson's Trust William Laurie Benefacl Trust Other grants 128,378 41,357 35,750 259,452 5,261 169,735 35.750 259.452 5,261 860 82,922 22,326 35,750 105,248 35.750 6,117 4,076 6,117 4.933 857 128,378 342,680 471.058 93,115 58,933 152,048 Incom0 from charltable actlvltlgs 2024 2023 Income from Charges - Quota 162,445 173,029 Analysis by fund Unreslricled funds 162.445 173,029 Income from investment$ Unrestricted Restricted funds funds 2024 2024 Total Unrestricted Restricted funds funds 2023 2023 Total 2024 2023 Rental Income Income from listed investments Interest re1vable 3,162 3,162 3,090 3,090 74,419 6,616 27,412 3,652 101,831 10,268 69,961 8,531 25,364 760 95.325 9,291 84,197 31,064 115,261 81,582 26,124 107,706 16- OKKese of Aberdeen & (hkney AGcounts fI6d9s89-793543a8-g9FeSa2d7ebSf1b71 Page.. 19133
Dlocese of Aberdeen and Orkney NotOS to the flnancial statgmgnts (Continued) for the year endod 31 Octobgr 2024 ExndItUre on raising funds Unrestricted funds 2024 Unrestricted funds 2023 Investment management 13,890 13.602 Exponditure on charilabla activitias Charltable activiti•s Charitable activities 2024 2023 Direct costs staff wsts Depreciation and impairment Quota Travel and subsisten Accommodation Postage, telephone and stationary Rent, rates, council lax and Insurance Repairs and renewals Cathedr81, Dean, Primus and Synod expenses Training and education expenses Miscellaneous Advertising Conferences 246.300 480 73.574 17,132 4.612 182,785 398 74.229 12,753 8,237 - li 3,332 26.651 15,203 2.436 1,676 16,858 904 3,142 19,907 6,509 5,377 413 13,343 4,672 8.180 39,746 2,400 ICT Legal expenses Pastoral services 13.277 116,075 538.510 382,091 Grant funding of aelivities Isee note 81 111,924 93,082 Share of support and govemance costs1599 note 9) Govemance 13,752 11,952 664,186 487,125 Analysi$ by fund Unreslricled funds Reslricled funds 532,466 131.720 391.626 95.499 664,186 487,125 17- OKKese of Aberdeen & (hkney AGcounts fI6d9s89-793543a8-g9FeSa2d7ebSf1b71 Page.. 20133
Dlocese of Aberdeen and Orkney NotOS to the flnancial statgmgnts (Continued) for the year endod 31 Octobgr 2024 Grants payable Charltable actlvltles 2024 Charitable activities 2023 Grants to institutions: All Sainys Buckle St Andrew's Alford St Clemenys Maslri¢k St John's Aberdeen St John's Portsoy St Magnus Lerwick st John's New Pilsligo St Mary's Aberdeen Other 5,420 7.282 9,500 54,902 9,462 4,533 7,845 4,000 65 13,927 9.462 8,162 9,301 14,195 21,520 4,359 14.018 109,476 88,477 Grants to individuals 4.605 111,924 93,082 Grants 8re m8de to charges. 3rd parties and individuals within the Scottish Episcop81 Church for variety of purposes and to non-church boiyies. Where grants are made from restricted funds. these are made in compliance with the restrictions plAd upon the use of such funds. The main grants awarded by the Finance and Propety Committee relate to m8inlenance of church buildings. Of the totsl amount of grants paid £22,86612023 £42,090) related lo the maintenance of church buildings, £28,888 12023 £31,429I related to general mission purposes, £54,357 12023 £8,027) related lo curacy, £2,143 12023 - £2,606) related lo training and education, and £3,670 12023 £8.9301 relaled lo travel. Support co$t$ allocated to activities 2024 2023 Audit fees 13,7S2 11,952 Analysed botwgen: Charitable activities 13,752 11,952 10 Net movement In funds 2024 ZOZ3 The net movement in funds is staled after chargingl{creditingl'. Fees payable for Ihe audit of the Charity's financial statements Deptsuation of owned tangible fixed assets 13.752 480 11.952 18- OKKese of Aberdeen & (hkney AGcounts fI6d9s89-793543a8-g9FeSa2d7ebSf1b71 Page.. 21133
Dlocese of Aberdeen and Orkney NotOS to the flnancial statgmgnts (Continued) for the year endod 31 Octobgr 2024 11 Trustees Trustees, remuneration and benefits During the CLJrrenl year, The Bishop Right Rev'd Anne C Dyer, received remuneration during the perd in which she was a Trustee of £4,124 12023 £Nill and pension conlribulions of £885 12023 £Nill for their services as Bishop, as permitted under the Diocesan Constitution. During the current year, The Interim Bishop Right Rev'd Dorsey Mcconnell. received remuneration during the period in which he was a Trustee of £38.01512023 - £Nill and pension contributions of £Nil 12023 - £Nill for their services as Interim Bishop. as permitted under the Diocesan Constitution. Trustees. expenses During the year five Trustees, the Bishop Right Revd Anne Dyer. Interim Bishop Right Rev'd lan Paton, Interim Bishop Right Rev'd Dorsey Mcconnell, Rev'd Neil Brice. and Dr Martin Auld received reimbursement of expenses amounting to £14,871 12023- five Trustees - £17,2721- 12 Employees The average monthly number of employees during the year was.. 2024 Number 2023 Number Bishop Administration Total Employmènt costs 2024 2023 Wages and salaries Social security costs Other pension costs 190,226 14,368 41.706 138.691 7,886 36,208 246,300 182,785 There were no employees whose annual remuneration was more than £60,000. Remuneration of key management personnel The remuneration of key management personnel was as folk>ws'. 2024 2023 Aggregate compensation 98,306 106,340 19- OKKese of Aberdeen & (hkney AGcounts fI6d9s89-793543a8-g9FeSa2d7ebSf1b71 Page.. 22133
Dlocese of Aberdeen and Orkney NotOS to the flnancial statgmgnts (Continued) for the year endod 31 Octobgr 2024 13 Gains and losses on inveslments Unrgstricted Restricted funds funds 2024 2024 Total Unrestricted funds 2023 Restricted funds 2023 Total 2024 2023 RevaluatKsn of investments Sale of investments 316,661 59,728 161,702 478,363 59,728 160,3651 16,803 16,648 (43,7171 16.803 376,389 161,702 538.091 143.5621 16,648 126,914) 14 Taxation The Charity is exempt from tsx81ion on its ackn'vities because 811 its income is applied for charitable purposes. 15 Tanglble fixed assets Freehold Fixturès land and and fittings buildings Total Cost At 1 November 2023 Additions 825.923 351,100 20,384 409 846,307 351,509 At 31 October 2024 1,177,023 20,793 1,197,816 D8pr•ciation and impairmènt Al 1 November 2023 Depreciation charyed in the year 19,749 480 19,749 480 At 31 October 2024 20,229 20,229 Carrying amounl At 31 October 2024 1.177.023 564 1,177,587 At 31 October 2023 825,923 635 826,558 OKKese of Aberdeen & (hkney AGcounts fI6d9s89-793543a8-g9FeSa2d7ebSf1b71 Page.. 23 133
Dlocese of Aberdeen and Orkney NotOS to the flnancial statgmgnts (Continued) for the year endod 31 Octobgr 2024 16 Flxed asset investments Listed investments Cash in porffolio Tolal Cost or valuation Al 1 November 2023 Additions Valuab'on changes Cash mov&ments Dlsposals 3,230,840 731,035 478,363 24,868 3,255,708 731,035 478,363 111,260} 1675,058} 111,2601 1675,058) At 31 October 2024 3.765.180 13.608 3,778,788 Carrylng amount At 31 October 2024 3,765,180 13,608 3,778,788 At 31 October 2023 3,230,840 24,868 3,255,708 Investment Risks FRS 102 requires the disclosure of information In relation to certain investment risks. These risks are set out by FRS 102 as follows.. Credit risk.. this is the risk that one party to a financial instrument will cause 8 financial loss for the other P8ty by f8iling to discharge an obligation. Market risk.. this comprises currency Tisk. interest rale risk and other price risk. Currency risk- this is the risk that the fair value or future cash flows of a finanoal asset will flLlCtiiatp. hp.r3LJse of r.hangp.s in fore.ign exrhangp ratp.s Interest rale risk.. this is the risk that the fair value or future cash lwS of a financial assel will fluctuate because of changes in market interesl rates. Other price risk.. this is the risk that the fair value or future c2sh flows of a financial asset will fluctuat2 because of changes in market PrIS lolher than those arising from interest rale risk or currency risk), whether those changes are caused by factors specific lo the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. The Charity has exposure lo these risks because of the investments il makes lo impl8m8nl ils investment strategy. The Trustees manage investment risks. including credit risk and mark&l risk, within agreed risk limils which are set lakn'ng into account the Charity's strategic investment objectives. These investment objectives and risk limits are implemented through the investment manager agreements in place with the Charity's investment managers and monitored by the Trustees by regular reviews of the investment portfolios, or in the case of SECUTS through the inveslment committee of the General Synod. Further information on the Charity's approach to risk management and the exF)osure to credit and market risks are set out below. Credit Risk The Charity invests directly in listed investments, as well as in pooled investment vehicles and is therefore difectly exwsed lo credit risk in relation lo these listed instruments and is indirectly exposed to credit risks arising on pooled investment vehicles. Pooled investment arrangements used by the Charity comprise authorised uriil trusts. 21 OKKese of Aberdeen & (hkney AGcounts fI6d9s89-793543a8-g9FeSa2d7ebSf1b71 Page.. 24 133
Dlocese of Aberdeen and Orkney NotOS to the flnancial statgmgnts (Continued) for the year endod 31 Octobgr 2024 16 Flxed asset Investments {¢ontlnued) Currency risk The Charity is subject to currency risk because some of the Charity's investments are held in oveTseas markets. Interest rate risk The Charity is subject to interest rate risk through investments comprising bonds. Other price risk Other price risk arises principally in relation lo equities held. The Charity manages this exposu to other price risk by conslrucling a diverse portfolio of investrnents across various markets. 17 Debtors 2024 2023 Amounts fallin9 due within one year- Trade debtors Other debtors Prepayments and accrued income 7,801 1.403 1,968 146,752 147.382 1,615 11,172 295,749 2024 2023 Amounts falllng due after more than one year: Trade debtors 91,337 Total debtors 102,509 295,749 Trade debtors falling due after more Ihan one year represents amounts where the Diocese anticipate that il is more probable that receipt of the outstanding balances will be greater Ihan one year. 18 Crgdltors: amounts falling due wlthin ono year 2024 2023 other taxation and social security Other creditors 3,015 30,409 27,216 27,216 33,424 OKKese of Aberdeen & (hkney AGcounts fI6d9s89-793543a8-g9FeSa2d7ebSf1b71 Page.. 25133
Dlocese of Aberdeen and Orkney NotOS to the flnancial statgmgnts (Continued) for the year endod 31 Octobgr 2024 19 Retirement beneflt schemes Dgfined benefit schemos 2024 2023 Charge to profit or loss in respect of d6fined benefit schemes 41.706 36,208 The Diocese contributes to a defined benefit pensions scheme, the SEC Pension Fund, which is independently managed by the Pension Fund Trustees. The scheme is subject lo fomial actuarial valuab'on on a triennial basis using the projected unil melhod. This scheme covers all seven Dioceses of the Scottish Episcopal Church and The General Synod Offi. The assets and liabilities of ariy one participant in the scheme cannot be identified separately. The provisions of FRS 102 allow employers participating in such schemes lo treat their pension disclosures as if the schem8 were a defined contribution scheme. This is the treatment which has been adopted by the Diocesan Trustees in these statements. with contributions charged lo the Ststement of Financial Activities of the Diocesan Goneral Fund bul no asset or liability appearing on the Balance Sheet. The most recent actuarial valuation was at 31 December 2023. The results of the valuation indicated that the position had deteriorated since 2020. the previous surplus of £5.6 million decreased lo a surplus of £4.6 million. This Trustees of the SEC Pension Fund and the Provincial Standing Committee recommend the contribution rale remains unchanged at 32.2%. OKKese of Aberdeen & (hkney AGcounts fI6d9s89-793543a8-g9FeSa2d7ebSf1b71 Page.. 26133
Diocese of Aberdeen and Orkney Notes to the financial statements {continued) for the year ended 31 October 2024 20 Restricted funds The restricted funds of the Charity comprise the unexpended balances of donations and grants held on trust subject to SPefiC conditions by donors as to how they may be used. Al 1 November 2023 Incomlng resources Resources expended Transfer8 Galns and losses At 31 October 2024 Bishop's Stipend Browning Bursary DrAnderson's Trust Wllliam Laurie - Building & M8intenance Fund William L8urie - Missionary Fund William Laurie - House Gift Recovery & Renewal Fund Rectory Green Fund Curate Fund Trusts & Olher Lent Appeal Benefact Trust 61,451 116.010 1,885 18,287 3,163 35.750 118,2871 (3.256) {17,8551 12,312 18,660 73,763 134,577 19,780 1,969 683,076 1,969 720,440 351,100 (5,6601 (91,6481 91,648 (15,9501 15,950 32,571 112,029 259,452 22,592 (6,6421 12.1881 154,3571 110.202) 15,5701 (7.703) 13,762 21,786 7,402 5,570 5.261 90,240 18.701 112,141 20,952 18,510 983,223 379,314 1131,7201 53,523 161,702 1,446,042 -24-
Diocese of Aberdeen and Orkney Notes to the financial statements {continued) for the year ended 31 October 2024 20 Re$trlcted funds (contlnuodl Previous year: Al 1 November 2022 Incoming resources Resources expended Transfers Gains and losses Al 31 October 2023 Bishop's Stipend Browning Bursary DrAnderson's Trust William Laurie - Building & Maintenance Fund Vvilliam Laurie- Missionary Fund Recovery & Renewal Fund Curate Fund Trusts & Olher 60,183 113,016 8,765 16.191 2,927 35.750 116,1911 11,8541 142,6301 1,268 1,921 61,451 116,010 1,885 11,270 660,792 28,512 {9,3011 {7,5821 15.9201 18,0271 (3,9941 1,969 683,076 22,592 18,332 11,534 4,992 6.865 3,035 91,444 1,925 96,240 973,982 85.057 195,4991 3,035 16,648 983,223 Bishop's Stipend The fund exists lo support the funding of the Bishop's stipend and expenses. Browning Bursary The fund generates income in order lo fund training and education opportunities. DrAnderson's Tru$t The fund is to support the churches that are engaged in mission in challenging 8re8S, Wlth a priest resident-, churches going through 8 transition into 8 new phase of life and mission, usually through the arrival of a new curate or priest-in-charge. with alleTrdanl, one-off costs,. or to invest in the development of new ordained and lay ministries in the Diocese, including senior and strategic leadership. Wllllam Laurie - Building & Maintenance Fund The fund is to SLlPPOrt the repair of Sl John's Episcopal ChLtrch building at New Pilsligo. -25-
Diocese of Aberdeen and Orkney Notes to the financial statements {continued) for the year ended 31 October 2024 20 Re$trlcted funds (contlnuodl William Laurie - Missionary Fund The fund is to support the mission and ministry in Buchan and its environs. Wllllam Laurle- House Gfft Mr William Ross Laurie made a gift of $350,000 to the diocese for the purchase of a rectory in Central Buchan. The rectory will be named "William Laurie House" in recognitr'on of the Reverand William Laurie, William Ross Laurie and the Donor's intervening ancestor's of that name. Reverand William Laurie was fomier Priest of St John's New Pitsligo. Recovery & Renewal Fund The fLJnding received frt)m Province 1$ to assist ttharges to recover from pandemic Trstrictions and renew commLJnily engagement. Rectory Green Fund Funding is available lo assist in improvin9 the energy efficSency and reduce the carbon footprlnt of rectories. The Rectory Green Fund fequires the Dwese lo match fltnd the Provincial funding up lo £5,000 each. Curate Fund The fund is lo support the original curate Jennifer Holden in her position as curate al St John's, Aberdeen. In September 2023 a new curate, Godwin Deacon, replaced ihis position. Trust & Other The fund gen8ral8d income which is used to relieve hardship and provide funds for specified charitable causes within the Diocese. LentAppeal The Bishop's LentAppeal in 2024 was for the benefit of Al Ahli hospital via The Jerusalem and the Middle East Church Association. The Al Ahli Hospital in Gaza, owned and sacrificially supported over many years by the Episcopal (Anglican) Diocese of Jerusalem, conb'nues to serve the who,'e 'family' IAhll of human beings in G8za. 11 provides a vit81 seNice in an increasingly desperate situation. The hospitsl is committed lo providing 2417 health services for all people in need of medical care. Benefact Trust The Beftefact Trusl provides the Diocese a recurrent grant each year to assist in a submitted projecl proposal. The funtjs received in 2024 have been provitjed to create clergy recruilmenl materials that will be used by the Diocese as a while and can be used by individual congregations when wriling congregational profiles and recruiting for posts. -26-
Dlocese of Aberdeen and Orkney NotOS to the flnancial statgmgnts (Continued) for the year endod 31 Octobgr 2024 21 Unrestricted funds The Ltnreslricled funds of the Charity cx)mprise the unexpended balances of donalions and grants which are not subject lo specific conditions by donors and grantors as lo how they may be used. At 1 Incomlng R•sour¢e$ November ro$ource$ expended 2023 Transfers Gains and losses A¢31 October 2024 General funds 3,584,214 376.909 {546.356) (53.5231 376.389 3,737,633 Previous year: At1 November 2022 Incoming Resources resources expended Transfers Gains and losses A131 October 2023 General funds 3,665,141 370,898 1405,2281 13,0351 (43,562} 3,584,214 Transfers between funds Transfers are made each year when projects come to an end and there is a closing net incomel lexpendilurel, or to align expenditure to the correct fund. 22 Analysis of net assets between funds Unrestrlcted Restrlcted funds funds 2024 2024 Total 2024 At 31 October 2024: Tangible assets Investments CLsrrenl assetsl(liabilitsesl 826,487 2.809,998 101,148 351,100 968,790 126.152 1,177,587 3,778,788 227,300 3,737,633 1,446.042 5,183,675 Unreslricled funds 2023 Restricted funds 2023 Total 2023 At 31 Octob8r 2023: Tangible assets Investments Current assetsllliabilitiesl 826,558 2,448,621 309,035 826.558 3,255,708 485,171 807,087 176,136 3,584,214 983,223 4,567,437 OKKese of Aberdeen & (hkney AGcounts fI6d9s89-793543a8-g9FeSa2d7ebSf1b71 Page.. 30133
Dlocese of Aberdeen and Orkney Notos lo thg financial ststements (Gontinued) for the year ended 31 October 2024 23 Continggnt liabilitiÈs The Diocese is the guarantor for any loans made by the Provincol Office of the Scottish Episcop81 Church to charges within the Di0se. Al 31 October 2024 there were no loans to charges from the prOMn. 24 Contingènt asséts The Diocese has entered Into 8 9rant undert£king, up to Ihe value of £30,000. with St Mary's Epis(xJpal Church, Auchindoir. Certain eonditlons exist whereupon this 9rant may b& payable to the Dioc&%e.' if St Mèry's sells or otherwise transfers ownership of the Rectory it shall repay the grant to the DI0Se th a premium calculated at a rate of 5°A of the grant being made, compounded annually. If St Marls rents out the Rectory as a private dwellirng house after 1 January 2013, it shall pay 15Yv of such rert to the Diocese. These conditions are subject to fLtture events out with the control of the Diocese and as such a debtor has not r8Gognised in the financial statements. 25 Operaknng lease commitments Lessee Al the rerK)rbng end dale the Charity h2d outstanding commitsnents for future minimum lease payments under rnon-cancellable operating leases, which f811 due as follows.. 2Q24 2023 Wilhin onè yèar Beeern and five years 7,17S 20,350 7.175 27.525 27,525 34.700 26 Ralated party transactlons During the Feriod in whic as a Trustee, the Diocese incurred f8es of £31,332 {2023 - £114,714) from Ledingham Chalmers LLP. Solicitors, in which s a partner. Grants and support of £169.735 {2023 - £105,248) were received tsy the Dlocese from The General Synod of the Scoltish Episcopal Church during Ehe year, and q(la of £73,574 12022 £74,229) was paid lo The Generdl Synod ol the Scortish Episcopal Church. Tho followin9 Char90- undor tho DiocoDO woro doomod to bo rolatod partio- for ¢Jisclo4¥ufts at there was believed to be sigTrificant influence through common Truslees or TTLislees and those related to them: St ThomaÉ Church, Aboyna praid quokn of £3,346 19093 £4,498) to tha Dioc&sè, and recaivad grdnts from thè Dioeèse of £2.02012023- 12,020). All Saints Episcopal Church Buckle paid quota of £2,270 12023 - £2.320) lo the Dioces8, and received grants from the Dioces8 of £5,42012023 - £7,845). Church Of St John Bap115t Portsoy paid quota of £189 12023 £2091 to the Dioces8, and receiv&1 grants from the Diocesè of £9,462 {2023 - £9,462). .26- DhKa88 ofAberdeen & Orthey Accounts.pfl6dc8?-193S4388.99fe4a2d[8bsflts7] Page.. 31133
Dlocese of Aberdeen and Orkney NotOS to the flnancial statgmgnts (Continued) for the year endod 31 Octobgr 2024 27 Ultimale controlling party The Diocese of Aberdeen and Orkney is a constituent part of the Scottish Episcopal Church and, as such, operates within the framework or regulation (the Canons of the Scollish Episcopal Church} passed by the General Synod. Within this framework Ihe Diocese has a completely independent decision-making process. 28 Cash generated from operations 2024 2023 Surpluslldefiull for the year 616.238 171.686) Adjustments for: Investment income recognised in statement of financial activities Gain on disposal of investments Fair value gains and losses on investments Depreuation and impairment of tsn9ible fixed assets (11 5.2611 159,7281 (478.3631 4BO 1107.7061 116,8031 43,717 398 Movements in worklng capital.. Decreasellincreasel in debtors (Decrease) in creditors 193,240 (6.208) {65,037) 17,146) Cash generated froml(absorbèd by) operations 150,398 1224,2631 29 Analysls of changes In net funds The Charity had no material debt during Ihe year. OKKese of Aberdeen & (hkney AGcounts fI6d9s89-793543a8-g9FeSa2d7ebSf1b71 Page.. 32133