ST. TERNAN’S SCOTTISH EPISCOPAL CHURCH
MUCHALLS
Registered Charity Number SC023264
Report and Accounts For the Year Ended
31[st] August 2024
OUR MISSION
At St. Ternan’s God calls us to use the Gifts we have been given, to grow as a Loving Church-Centred community of inclusivity in which we welcome The Stranger, Worship God and reach out to The World in which we live, always demonstrating Jesus’ Love.
SCOTTISH EPISCOPAL CHURCH – DIOCESE OF BRECHIN
ST. TERNAN’S CHURCH, MUCHALLS (CHARITY NO SC023264)
REPORT AND ACCOUNTS FOR THE YEAR ENDED 31[ST] AUGUST 2024
- The Trustees of the Charity who have served during the year, are as follows:-
At least one Trustee retires from the Vestry at the Annual General Meeting and at least one Trustee falls to be elected.
2. Bankers
The Bank of Scotland, 27 Market Square, Stonehaven, Aberdeenshire, AB39 2BB
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SCOTTISH EPISCOPAL CHURCH – DIOCESE OF BRECHIN
ST. TERNAN’S CHURCH, MUCHALLS (CHARITY NO SC023264)
REPORT AND ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2024
- Independent Examiner
4. Church Address
St Ternan’s Scottish Episcopal Church, Muchalls, Stonehaven, Aberdeenshire, AB39 3PP.
5. Principal Office
6. Report of the Trustees
In terms of the Charities Accounts (Scotland) Regulations 1992 the Trustees report to the Congregation as follows:-
St. Ternan’s Church, Muchalls is a Church of the Scottish Episcopal Church, in full communion with the Anglican Church.
The superior authority is the Bishop of Brechin.
Our Charitable Purpose is the Advancement of Religion. We are part of the Scottish Episcopal Church. We offer regular public worship within the broad tradition of the Episcopal Church. We seek to live out the Christian Gospel in our local community in love and service.
The present Constitution of the Church dates from 2013. It is available for inspection if required.
The Trustees of the Charity present their annual report together with the financial statements for the year ended 31[st] August 2024.
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SCOTTISH EPISCOPAL CHURCH – DIOCESE OF BRECHIN ST. TERNAN’S CHURCH, MUCHALLS (CHARITY NO SC023264)
REPORT AND ACCOUNTS FOR THE YEAR ENDED 31[ST] AUGUST 2024
7. Review of the Accounts for the Year
The Accounts for the year show a deficit of £8,026 (2023 – a deficit of £9,937). This is clearly undesirable and the Trustees have been much exercised over the past months to identify and implement a number of cost savings where possible. The costs of both heating and building maintenance have increased dramatically following the invasion of Ukraine and the subsequent jump in inflation and in particular building costs. Advice is being taken from the Provincial Net Zero team as to how to further reduce our heating costs whilst safely preserving the fabric of our building. Fundraising from donations has also suffered a decline.
However, on a brighter note our three year Transitional Ministry, which is coming to an end in January 2025, has been judged so successful that arrangements are now being made for a relicencing of our Priest, , our current Transitional Minister, to a Priest-in-Charge on an open ended basis for the two linked charges of St Ternan’s and St James, Stonehaven. It has been agreed between St Ternan’s, St. James, Stonehaven and the Diocese that the present arrangements for sharing the costs of this will continue, and the cost to St. Ternan’s will therefore continue to be at the same level as in previous years. When we agreed to link ourselves with St James, back in 2021, there was understandable concern that we could both lose our individual identities and more particularly our own style of services. Fortunately, this has not been the case and over the years the two churches have been able to find a friendly and productive way to work together and also to hold the occasional joint service.
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SCOTTISH EPISCOPAL CHURCH – DIOCESE OF BRECHIN ST. TERNAN’S CHURCH, MUCHALLS (CHARITY NO SC023264)
REPORT AND ACCOUNTS FOR THE YEAR ENDED 31[ST] AUGUST 2024
8. Reserves Policy
The Trustees are mindful of the effect of continuing deficits on the remaining reserves of the charity. If the charity continues to have a deficit at the current level of £8,000pa then our reserves, (as at 31[st] August 2024 - £27,800), would be exhausted, assuming closure costs of no more than £7,500, within 2-3 years. Our Vestry has accepted that our reserves must not fall below £7,500 so as to allow an orderly closure in the event of cessation. Much effort is being concentrated on reducing our running costs, increasing our income streams and realising any assets not directly involved in the day to day work of the church.
9. Expenses paid to Trustees
Whilst the great majority of payments to the Trustees are for the reimbursement of costs incurred buying small items of stationery, altar supplies , catering and cleaning goods there have been a number of payments, which on further review should have been approved in advance and so minuted by the Vestry:-
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9.1 Two small gifts, costing £60.97, were purchased on behalf of the Vestry by the Secretary, , and presented to two retiring members who had left the Vestry after many years of great service to our Church. Although this matter was discussed with other members of Vestry no formal minute recording approval was taken at the time. This has subsequently been rectified by a retrospective minuted approval dated 3[rd] November 2024.
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A member of Vestry, , is being paid the sum of £15.00 for a fortnightly cleaning of our various toilet and kitchen facilities. This was agreed upon in 2012 as November 2023
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being more cost effective than employing outside cleaners. Since 19[th] has become a Trustee and the prior practice of claiming this amount on
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expense forms was ceased from 31[st] August and for the current year replaced by the submission of invoices.
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9.2 A member of Vestry,
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9.3 On the retirement due to her leaving the North East a luncheon was held in the Church for our long standing organist The cost of the food for this lunch which was
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SCOTTISH EPISCOPAL CHURCH – DIOCESE OF BRECHIN
ST. TERNAN’S CHURCH MUCHALLS (CHARITY NO SC023264)
REPORT AND ACCOUNTS FOR THE YEAR ENDED 31[ST] AUGUST 2024
purchased from an outside supplier was £113.44 and was claimed by our then Treasurer, , but again no formal minute was taken to record any prior approval by the Vestry. Again this matter has been subsequently rectified by a retrospective minuted approval dated 3[rd] November 2024.
In addition to the above our Transitional Minister, , who is also a Trustee by virtue of her position, receives a Stipend and associated housing provision from the Diocesan team. We, together with St James, Stonehaven and the Diocesan team share the costs of her Stipend and housing in a proportion agreed between the three parties before this arrangement commenced. During the year under review the costs borne by St. Ternan’s for our share of the Stipend, housing and sundry travel costs was £12,692 and are reported in the accounts under the heading Transitional Ministry.
10. Budgetary Control
The practice of preparing annual budgets prior to the commencement of a new financial year had fallen into disuse up to and including the year under review. On the appointment of a new Treasurer a forecast for the remainder of the year was established so as to guide the Vestry in it’s decision making. Subsequently from September 2024 a detailed agreed budget has been put in place.
- Transactions between the Charity, Charity Trustees or Connected Persons Apart from a moral obligation to pay Quota to the Diocese together with our agreed share of Stipend, housing costs and sundry travel costs referenced in Note 9 above, there are no material transactions with any other connected or associated body.
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SCOThISH EPISCOPAL CHURCH- DIOCESE OF BRECHIN ST. TERNAN'S CHURCH, MUCHALLS (CHARITY NO SC0232641 REPORT AND ACCOUNTS FOR THE YEAR ENDED 31"AUGUST 2024 12. Responsibility of the Trustees regarding the Accounts It should be noted that it is the responsibility of the Trustees to prepare financial statements. which give suff icient detail to enable an appreciation of the transactions of the Church during the financial year. The Trustees are responsiblefor keeping proper accounting records, which, on request, must reflect the current financial position ofthe Church atthat time. This must be done to ensure thatthe financial statements complywith the Charities and Trustee Investment {Scotlandl Act 2005 and the Charities Accounts {Scotland) regulations 2006. They are also responsible for safeguardingthe assets of the Church and must take reasonable steps for the prevention andlor detection of fraud or other irregularities. Signed on behalf ofthe Trustees Page 6
APPENDIX 3 OSCR krAIth (harityRwktor Independent •xamin•r's report on the accounts Report to the Gfoiyrw• 99isbrgd chafity SC 02 < 264- nurnber On th• accruntÈ olth Portod stsrt dato charlty for the perlod P6ried end Ymr 202 Ilu6 S•tOLrtl•iipagès i kn is RespKtr¥• Th& chAriiVg truBl8gs rosponBitqe k)r thg prgp8r4tion ofth• Accounls In acctsrdanco respon51bllMles of 54ilh the lemis of the Charities and Tru$tee Inyèsimoni IS¢oUandl 2005 Act and the tW5tee$ and examiner Chonties Accounts l&otlgndl Regulations 2(X16 I&s 8rnendedl. The ¢haTity trustee8 )nsK1¢r Ihal wdil requirempnl ol Rewlation 10111 Idl Df Ihe kncoutrt5 Regulatso doe8 nol aFply.11 is my re3pon8ibility to examinetheaccount3 as required under section 44111 Icl of ihèAd aNS to state whether Datl¥ mattÈrg hBvè eomé to myattenlh)ft. Basls tsf IndèpèAdènt W e%8rnSn$tTh 1$ ¢&rrieO out in 8¢¢ord&n¢e Re9Ul•tI¢ 11 of Ih• 2006 A¢¢ounl •xamIngl stat•rnnt R8011I8lTrJr ATh ey8rnin?lion incliid8S 8 wew ofthe ani10 retords kept by I ChaDty a comparison of thè accounts presented with th)se records. It also includes oTh5eral[0B of any unusual ttetn5 or4ji5d05us inthe aLYounts and seeks explanatton5 frotn the Iru51ees [X)nr53Y 5vGh tnaitgr5. The te¢UreS underlaaon do not provxlo all blo •I4dgnca Ihatwould b• wuirod in an audit conÉoqu•nlty, I do r¥)i express an audil opinion on the view liven by the accounts. Indap8ndent •xamtnarfs In Ihe urse ol my gxaminaiion. no matt¥ has o)me to my atlefttioa10th whl¢h 9Sve$ n reasond)Te cause to b6llev&that In any matwfjal rè$pact thè requir8m8nls'. to keep ac¢ou)ling re¢tyds in ?ordance wrth $edK)n44111 lal of the 2005 Ad ar R8gulation 4 of th8 2006 Accounis ReguLgtions, and to prepareaGcournts whlGh arKord wllh lh8 acujunlng recoriS1 and (rjmply Ath Rewlaiion 9 of tho 2006 Attounls Re9utIOnS h8venol been mel. 01 to b%hi¢h. In my opinion. att¢nlion should b¢ drawn In lo ynDblc a proprr Sigw¥ed R¢levanl prolgssion quallflcatloBI51 orbod (Wanyl Address
SCOTTISH EPISCOPAL CHURCH – DIOCESE OF BRECHIN
ST. TERNAN’S MUCHALLS (CHARITY NO SC023264)
RECEIPTS & PAYMENTS FOR YEAR ENDED 31[ST] AUGUST 2024
| RECEIPTS | Notes | 2024 | 2023 |
|---|---|---|---|
| Congregational & Voluntary | 2 | 16,306 | 16,019 |
| Tax Reclaimed | 2 | 4,297 | 4,436 |
| Special Collections | 3 | 408 | 581 |
| Investment Income | 4 | 355 | 239 |
| Donations | 2 | 514 | 3,377 |
| Rental of Rectory | 6 | 10,200 | 10,200 |
| Rectory Heating Refunded | 2 | 498 | 454 |
| Sale of Register CD’s | 7 | 28 | 32 |
| Fundraising Events | 7 | 832 | 720 |
| Total Income | 33,438 | 36,058 | |
| PAYMENTS | |||
| Quota – Provincial & Diocesan | 8 | 4,121 | 3,625 |
| Cost of Ministry | 8 | 250 | 388 |
| Church Expenses | 10 | 14 | 326 |
| Property Expenses | 9 | 19,338 | 22,203 |
| Organist/Organ Repairs | 10 | 2,599 | 1,945 |
| Transitional Ministry | 10 | 12,692 | 13,103 |
| Administrative Expenses | 11 | 1,965 | 2,241 |
| Charitable Expenditure | 12 | 485 | 1,000 |
| Quinquennial Inspection | 10 | 0 | 1,163 |
| Total Expenses | 41,464 | 45,995 | |
| DEFICIT FOR THE YEAR | £8,026 | £9,937 | |
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SCOThISH EPISCOPAL CHURCH- DIOCESE OF BRECHIN ST. TERNAN'S MUCHALLS (CHARITY NO SC023264) STATEMENT OF BALANCES AS AT 31ST AUGUST 2024 Notes 2024 2023 BANKAND CASH IN HAND Opening Balances Deficit for the Year 14 35,881 45,818 (8,026) (9,937) Closing Balances 14 £27,855 £35,881 RESERVES HELD BY THE CHARITY Bank of Scotland General Fund 27,855 6,274 Bank of Scotland Community Fund 2,869 Virgin Money 26,738 Closing Reserves £27,855 £35,881 Page 8
SCOTTISH EPISCOPAL CHURCH – DIOCESE OF BRECHIN
ST. TERNAN’S MUCHALLS (Charity No SC023264)
Notes to the Accounts
1. Accounting Policies
The Accounts are prepared on a Receipts and Payments basis without the recognition of any debtors or creditors.
Investments held beneficially are stated at cost unless stated otherwise. Endowment Investments granting rights to income only are excluded from the Balance Sheet.
Unrestricted Funds are divided into general funds and designated funds and are controlled by the Vestry. Restricted funds are funds subject to specific conditions imposed by the donor or related trust.
| 2024 | 2023 | |
|---|---|---|
| 2. Congregational and Voluntary Income | ||
| Gift Aid Envelopes – net | 13,306 | 12,969 |
| Deeds of Covenant – net | 3,000 | 3,050 |
| Tax reclaimed - net | 4,297 | 4,436 |
| Donations | 514 | 3,377 |
| Refunded Rectory Heating | 498 | 454 |
| Totals £21,615 | £24,286 |
| 3. Special Collections | |||
|---|---|---|---|
| Swaziland | 0 | 300 | |
| Cyrennians | 0 | 27 | |
| Turkey Syria Disaster | 0 | 254 | |
| Vocal Moves Choir | 190 | 0 | |
| Prayer Day | 83 | 0 | |
| Eswatini Shoe Appeal | 135 | 0 | |
| Totals | £408 | £581 |
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SCOTTISH EPISCOPAL CHURCH – DIOCESE OF BRECHIN
ST. TERNANS MUCHALLS (Charity no SC023264)
Notes to the Accounts (Cont’d)
| Notes to the Accounts (Cont’d) | ||
|---|---|---|
| 2024 | 2023 | |
| 4. Investment Income | ||
| General Funds – SEC Unit Trust Pool | 144 | 133 |
| Virgin Money – Interest | 211 | 106 |
| Totals | £355 | £239 |
| 5. Endowment Income | ||
| Not Applicable | ||
| 6. Property Income | ||
| Rental of Rectory | £10,200 | £10,200 |
| 7, Sundry Income | ||
| Sale of Register CD’s & Baptismal Prints & PC’s | 28 | 32 |
| Fund Raising | 832 | 720 |
| Totals | £860 | £752 |
| 8. Cost of Ministry | ||
| Payment of Quota | 4,121 | 3,525 |
| Visiting Preachers & Ministry Team Expenses | 250 | 388 |
| Totals | £4,371 | £4,013 |
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SCOTTISH EPISCOPAL CHURCH – DIOCESE OF BRECHIN
ST. TERNAN’S, MUCHALLS (Charity no 023264)
Notes to the Accounts (Cont’d)
| Notes to the Accounts (Cont’d) | ||
|---|---|---|
| 2024 | 2023 | |
| 9, Property Expenses | ||
| Church & Grounds:- | ||
| Heating, Lighting & Related Repairs | 9,004 | 11,444 |
| Building Repairs & Maintenance | 5,728 | 2,173 |
| Insurances | 1,631 | 1,463 |
| Ground Maintenance | 2,179 | 6,756 |
| Rectory:- | ||
| Insurances | 435 | 367 |
| Repairs & Maintenance | 361 | 0 |
| Totals | £19,338 | £22,203 |
| 10. Church Expenses | ||
| Transitional Ministry | 12,692 | 13,103 |
| Organ Repairs & Organists | 2,599 | 1,945 |
| Altar Expenses | 14 | 327 |
| Quinquennial Inspection | 0 | 1,163 |
| Totals | £15,305 | £16,538 |
| 11. Administration Expenses | ||
| Church Telephone & WiFi | 826 | 631 |
| Printing, Newsletters & Stationery | 498 | 839 |
| Scottish Churches Trust | 50 | 50 |
| Messy Church | 0 | 320 |
| Sundries – CCLI Licence, Facebook & Grapevine | 591 | 400 |
| Totals | £1,965 | £2,240 |
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SCOTTISH EPISCOPAL CHURCH – DIOCESE OF BRECHIN ST.TERNAN’S MUCHALLS (Charity no SC023264)
Notes to the Accounts (Cont’d)
| Notes to the Accounts (Cont’d) | |||
|---|---|---|---|
| 2024 | 2023 | ||
| 12. Charitable Expenditure | |||
| Poppy Scotland | 150 | 100 | |
| Bishop’s Lent Appeal | 100 | 500 | |
| Swaziland | 0 | 300 | |
| Eswatini Shoe Appeal | 135 | 0 | |
| Cyrennians | 0 | 100 | |
| Totals | £385 | £1,000 |
13. Investments
Although Income was received from funds invested in the SEC Unit Trust Pool during the year of £144, (2023 -£133) the origins of the funds are still being investigated to ascertain whether they should now be included in the General Funds controlled by the Vestry. Enquiries are still continuing and as at the Balance Sheet date no decision had been taken.
14. Bank and Savings Account Balances
| During the year it was agreed to simplify the Banking arrangements and combine all the |
|---|
| accounts with the Bank of Scotland into one General Account and to close the Virgin Money |
| Account and again combine those funds into the General Fund at the Bank of Scotland. |
| Bank of Scotland General Fund 27,855 6,274 |
| Bank of Scotland Community Fund 0 2,869 |
| Virgin Money Savings Account 0 26,738 |
| Totals £27,855 £35,881 |
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SCOTTISH EPISCOPAL CHURCH – DIOCESE OF BRECHIN
ST. TERNAN’S MUCHALLS (Charity no SC023264)
Notes to the Accounts (Cont’d)
| Notes to the Accounts (Cont’d) | ||
|---|---|---|
| 2024 | 2023 | |
| 15. Movement on Funds | ||
| Opening Funds at Start of Year | 35,881 | 45,818 |
| Deficit for the Year | (8,026) | (9,937) |
| Closing Funds at End of Year | £27,855 | £35,881 |
16. Outstanding Commitments
There were no capital commitments as at 31[st] August 2024, (2023 – nil).
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