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← Highland Theological College

2025-07-31-accounts

Company registration number $C 149728

Charity registration number $C029190

HIGHLAND THEOLOGICAL COLLEGE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

HIGHLAND THEOLOGICAL COLLEGE

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Dr
JA Grant
ProfM DB Harper
Dr SAdamson
Prof Fraser
Mr D Macpherson
Mr D D F Stewart
Key management personnel DrJamie Grant Principal
Blair Gardner Vice Principal Operations and Finance
Alan Buist Vice Principal Operations and Finance
Dr Innes Visagie Vice PrincipalAcademic
Country ofincorporation Scotland $C149728
Charity registration Scotland $C029190
Registered office High Street
Dingwail
Ross-shire
IV15 SHA
Auditor MacKenzie Kerr Limited
Chartered Accountants and
Statutory Auditor
Redwood
19 Culduthel Road
Inverness
IV2 4AA
Bankers UnityTrustBank
9 Brindley Place
Birmingham
Bi 2HB
Solicitors Murchison Law
5 Ardross Terrace
Inverness
V35NQ

HIGHLAND THEOLOGICAL COLLEGE

CONTENTS

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HIGHLAND THEOLOGICAL COLLEGE

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JULY 2025

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The Trustees present their annual report and financial statements for the year ended 31 July 2025.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charitable company's governing document, the Companies Act 2006 the Charities and Trustee investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts102)". in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS Objectives and activities The company's objectives and principal activities are summarised in the Mission Statement: The Highland Theological College exists to provide opportunities for men and women to study the Christian faith, on a full time, part time or open learning basis, from an evangelical and reformed perspective, in the context of a worshipping community. The College is committed to high academic standards of teaching and learning in its access, undergraduate and postgraduate level courses. Through its staff and students, the College seeks to make a contribution to biblical and theological scholarship. andThe educationCollege alsoat aseeksnon-certifiedfo servelevel.the churches of the Highlands and Islands by responding to requests for training In addition to its core business of providing theological education and training, the College also seeks to serve the wider community by facilitating other educational opportunities, both in its capacity as an Academic Partner in the University of the Highlands & Islands and in partnership with other agencies. Above all, our intention is to glorify the one God, who is Father, Son and Holy Spirit and who has chosen to make himself known to us.

Achievements and performance

Highland Theological College (HTC) as an Academic Partner of University of the Highlands & islands (UHI) UHI 2025 and UHI Strategic Plan 2030

The major review of the university and its various structures initiated in 2022-23 under the above headings with a view to enhancing the university's operational structures and Strategic and financial position by 2025, continued in session 2024-25. The voluntary severance scheme for Executive Office (EO) staff, begun in the previous academic session, continued into 2024-25, complemented by a compulsory severance scheme. The focus then turned to a proposed Target Operating Model (TOM) and Full Business Case (FBC), largely focused on the workings of the larger Further Education (FE) Academic Partners, with the Specialist Colleges (including HTC) and Orkney College being invited to engage with the new core UHI at a later point. An Operating Modei has been agreed and progress towards this new structure will continue in the coming academic year. HTC has been clear that our distinctive mission requires that we continue to operate as an independent college in a federal relationship with UHI as was the original vision of each body. At the same time, the whole question of the replacement of the Resource Allocation Model (RAM) which retains a 35% ‘top slice’ of monies received by the university for teaching its Higher Education (HE) students, remains untouched with significant detriment to our financial position as HTC does not benefit from many of the EO functions funded by the ‘top slice’. We are hopeful of and look forward to a more equitable solution in the new Operating Model.

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HIGHLAND THEOLOGICAL COLLEGE TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

Teaching and Facilities Following the return from the pandemic, in line with the majority of UHI Humanities programmes, our teaching has been conducted remotely using a combination of video-conferencing (MS Teams) anda virtual learning environment (Brightspace) for students. This mode of teaching and learning has proven popular with students. However, it leaves us in a position where our current facilities in both Dingwall and Paisley are larger than is presently required. To that end, we have marketed the Dingwall campus for sale and are presently seeking an appropriate facility in Inverness to host the College. We will aiso be terminating the current lease with the Wynd Centre (Paisley) for the facility there, although we will continue to lease a room in the centre for the use of our students on a weekly basis. These moves should reduce costs substantially and provide facilities that are fit for present and future purposes.

Student Numbers Programme Actual Heads FTE PhD 17 10.5 M.Litt 10 5 BA (Hons) Theological Studies 54 32.2 BA Philosophy (Single and Joint) (26) 2 BA PPE (8) 4 Access 38 nla

(number in brackets are the total students enrolled on these courses but not registered at HTC) In addition, we had 14 students (9.6 FTE) registered with us on courses other than Theology; while we also teach Theology to a small number of UHI students registered at other UH} Academic Partners. BA numbers, while still recovering from the post-pandemic dip, are up slightly on last year's figures and we look forward to that trend continuing. PhD numbers, have increased considerably over the last few years and we expect this trend to continue as we enter into new partnerships. HTC serves as the Home Academic Partner (HAP) not only for the BA Theology programme but also for the BA Philosophy (Single and Joint) programme and the Philosophy, Politics and Economics (PPE) programme. Even when only a small number of students are enrolled at HTC, we retain full academic responsibility for these programmes. HTC staff lead key modules that attract students from other UHI colleges, which both increases our academic influence and generates significant income for HTC. This demonstrates HTC's broader engagement across UHI and the financial and strategic value of our programmes beyond Theology. Graduation June 2025

PhD 0 MRes 1 BA (Hons) Gaelic Studies 4 BA (Hons) Theological Studies 5 BA Archaeology 1 (with distinction) BA Sociology and Politics 4 BA Theological Studies 3 Dip HE Theological Studies 4 Cert HE Archaeology 1 Cert HE Theological Studies 2 Access Certificate in Christian Theology 2 Certificate in Christian Theology 4

A number of other 2025 graduates will have completed all or part of their studies with HTC but were officially registered with another Academic Partner of the university on the Theological Studies degree or on one of the university's joint degrees, or on one of the degrees which involve Philosophy, and which are run from HTC. Within UHI, these individuals are included officially as students of other Academic Partners although HTC receives a measure of funding for teaching them.

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HIGHLAND THEOLOGICAL COLLEGE TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

The MLitt Theology, Worldview and Culture(TWC) continues to draw relatively small numbers of students but significant interest. The new intake for the 2025-26 year means that all six taught modules will be running for the first time this year. We have a good number of enquiries/applications for this programme in the coming academic year, which is encouraging. We have received feedback that several potential students in full time church ministry would like to take the course but will struggle with the assessments and dissertation. To that end we are considering the development of a Graduate Diploma in TWC with a lower assessment threshold. We are also advertising the MLitt as being available for audit (classroom participation but without assessments or formal qualification). We hope that these options will boost numbers on the MLitt.

One of our MRes graduates, Benjamin Traynor, is now working with the Free Church of Scotland in Aberdeen. The other who completed, but not in time for graduation, Ramone Mackenzie, is in the process of taking over as Principal of Edinburgh Bible College.

A number of our BA (Hons) and BA graduates are training for Church of Scotland ministry and go on to their probationary period of training in that denomination. A number of our other graduates have taken up roles in Baptist and other independent churches across Scotland. At the same time many of our graduates have continued into or returned to ‘secular’ employment, while a couple of students have gone on into post-graduate studies, one undertaking PhD studies in theology with us at HTC and another in teacher education.

Church of Scotland

We have begun this year to provide an Apprenticeship Programme for the Church of Scotland. There are eleven students in the SP and seven are undertaking modules in the BA, while four are undertaking the Access Programme. The engagement with the students has been positive and we hope his programme will continue beyond its two-year trial period.

Staffing News This has been a period of relative stability in the HTC staff team. Preparations are being made for changes to the senior management team with the pending retirements of the Principal and Vice-Principal (Operations and Finance) in the 25-26 academic year.

Members of the academic staff team continue to publish a variety of books and articles and to present regularly at academic conferences. In March 2025 Rev Dr Bruce Ritchie had his book on James Clerk Maxwell: Faith, Church and Physics, published by Handsel Press. The book was launched at a very successful book event in Inverness.

In April Prof Mark Elliott delivered a Conference paper on ‘The Psychology of Faith; Lutherans and Augustinians’ at Budapest, Kasper Karoly University ‘Grace and Favour’ Conference.

Prof Elliott also published Psalms 42-72 in T&T Clark's An International Theological Commentary series.

At the end of April 2025, HTC held a Scottish Church History Conference at which Rev Dr Bruce Ritchie, Rev Prof Donald Meek and Rev Dr Nick Needham, amongst others, gave papers.

In June 2025 PhD graduate and former PT lecturer, Rev Dr John S Ross, had his PhD thesis Time for Favour Scottish Evangelism among the Jewish People 1838 to 1852 published by Christian Focus Publications. In addition, a number of our academic staff members have spoken at conferences, or at church weekend retreats; while most of our academic staff are regularly involved in preaching in various churches and locations both locally and across Scotiand, and also in delivering lectures, talks or seminars in a whole variety of arenas.

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HIGHLAND THEOLOGICAL COLLEGE

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

Financial review

As is the case with the University of the Highlands & Islands generally, much of the HTC Board's efforts during the year have been focused on addressing financial sustainability.

With student numbers continuing to fall, leading to an ongoing reduction in income from core activities , the Board continues to concentrate its efforts on raising HTC's profile, to both potential supporters and potential students. An undergraduate Full-time Equivalent’ [FTE] of 32, versus 43 for the 2023/24 financial year, represents a second consecutive and significant reduction in undergraduate members, while, at the same time post graduate numbers increased only marginally.

Donations are vital to the future of the college, and we remain grateful for the continued and generous support of the Lord's people. However, donation income has fallen again this year to £90,000 (2023/24 - £267,000; 2022/23 - £74,000). In seeking to address this, the Board has engaged an independent marketing consultant with the aim of raising the college's public profile significantly.

The disappointing income figures are reflected in an operational deficit for the year of £169,000.

Estate maintenance and repairs continues to be our largest category of expenditure, other than staff salaries. The Board has therefore taken two steps to address this; firstly, a planned withdrawal from the HTC centre in Paisley, effective from July 2026, and secondly, offering the premises in Dingwall for sale by the end of 2025, with the aim of relocating to premises, probably in Inverness, better suited to the current teaching model and more cost efficient to run.

The governors continue to monitor the college's financial position on a regular basis and seek both to identify new ways of enhancing existing business streams and to develop new ones.

The ongoing deficit position has led the Board to consider the college's status as a going concern. However with financial support being made available by UHI for the next two financial years at least, the Board are satisfied that the college remains a going concern. It is also recognised that the planned sale of the Dingwall Estate has the potential to raise funds, while acknowledging that a portion of any such sum would be required in making alternative accommodation arrangements.

Reserves policy

It is the policy of the Charitable company that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month's expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Charitable company’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

Major risks

The trustees have a duty to identify and review the risks to which the charity is exposed to and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error, That duty is specifically addressed regularly at meetings of the Board and its Risk Register is notified to UHI.

Structure, governance and management

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

During 1994 the Trustees of the Highland Theological Trust (Scottish Charity Registration Number: $C022838, formed Highland Theological College Ltd (HTC) in order to provide theological education. The Board of Governors of HTC are its Directors.

The company is a charitable company, limited by guarantee not exceeding £10 per member and not having a share capital.

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HIGHLAND THEOLOGICAL COLLEGE

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Dr JA Grant Prof M D Harper {Appointed 16 December 2024) Dr S Adamson Prof | Fraser Rev | A Macleod (Resigned 16 February 2026) 2026) Mr D Macpherson Mr DD F Stewart Ms C MacKenzie (Resigned 10 February 2025) Rev H Morrison (Resigned 31 August 2025) Mr D S MacKenzie (Resigned 21 October 2024)

{Appointed 16 December 2024)

(Resigned 16 February 2026) 2026)

Recruitment and appointment of trustees New trustees are identified by the current Board of Governors and are appointed by resolution of the Board of Governors. Although not strictly provided for in the Articles of Association there is a working practice of periodic resignation of Governors by rotation.

Organisational structure The Board of Governors has responsibility for all non-academic matters relating to the day to day oversight of HTC, including finance, estates, resource and personnel. In order to facilitate the day to day running of the College, the Board of Governors appoints a Principal who acts as Chief Executive. Academic Board: The principal chairs the Academic Board, which is responsible for, inter alia; * The creation, content and delivery of courses * The continuing development of courses * The selection of suitably qualified tutors * The development of systems for staff appraisal and development

The programme committees for Access Course and BA Degrees report to the Academic Board, as does the coordinator for Research (responsible for MPhil and PhD students).

Management Group

There is a Management Group which advises the Principal on the day to day running of the college. This consists of the Principal, the Vice Principal (Academic) and the Vice Principal (Operations & Finance). All significant nonacademic matters are brought to the Management Group.

Induction and training of trustees Induction and training of new trustees is undertaken by the Chair of the Board and members of the Senior Management Team of HTC. The process includes an induction to the University of the Highlands & Islands (UHI), provided periodically by its Secretary and Chief Operating Officer.

Remuneration policy

Governors receive no remuneration in their role as trustees but are reimbursed for any expenses incurred in that role. For governors in academic posts and other key management personnel, remuneration is constrained by the financial structures within which the college operates.

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HIGHLAND THEOLOGICAL COLLEGE TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

Relationship with wider network

HTC is a constituent Academic Partner of the University of the Highlands & Islands, which was awarded University Title in February 2011. HTC plays a full part in UHI's operations, including representation on its main Boards and Committees. HTC is subject to the quality assurance procedures of UHI for all relevant courses and students. Ms Vicki Nairn, Principal of UHI, is the Chief Accounting Officer in respect of Scottish Funding Council (SFC) funding and HTC is responsible to her for the use of academic funding passed on by UHI to HTC.

Statement of Trustees responsibilities

The Trustees, who are also the directors of Highland Theological College for the purpose of company law, are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the Trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charitable company will continue in operation.

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. They are also responsible for safeguarding the assets of the Charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

In accordance with the company's articles, a resolution proposing that MacKenzie Kerr Limited be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

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HIGHLAND THEOLOGICAL COLLEGE iNDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HIGHLAND THEOLOGICAL COLLEGE

Opinion

We have audited the financial statements of Highland Theological College (the ‘Charitable company’) for the year ended 31 July 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements: - give a true and fair view of the state of the charitable company's affairs as at 31 July 2025 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and the provisions available for small entities, in the circumstances set out in note 26 to the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is fo 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 misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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HIGHLAND THEOLOGICAL COLLEGE

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF HIGHLAND THEOLOGICAL COLLEGE

Responsibilities of Trustees As explained more fully in the statement of Trustees responsibilities, the Trustees, who are also the directors of the Charitable company for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial Statements, the Trustees are responsible for assessing the Charitable company’s ability to 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 liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

identifying We and assessing risks related to irregularities: assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended, We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and updating our understanding of the sector in which the company operates.

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HIGHLAND THEOLOGICAL COLLEGE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF HIGHLAND THEOLOGICAL COLLEGE

Laws and regulations of direct significance in the context of the company include The Companies Act 2006, and UK Tax legislation.

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes if meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the Responsible Individual (RI) drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the RI's review included ensuring that the team had approached their work with appropriate professional skepticism and thus the capacity to identify noncompliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company, the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

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Rhona Wilson, BA, FCCA (Senior Statutory Auditor) For and on behalf of MacKenzie Kerr Limited, Statutory Auditor Chartered Accountants Chartered Accountants and Statutory Auditor Redwood

19 Culduthel Road Inverness V2 4AA : Date: 28. book. any

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HIGHLAND THEOLOGICAL COLLEGE

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 JULY 2025

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2025 2025 2025 2024 2024 2024
Notes £ £ £ £ £ £
Income from:
Donations and legacies 2 405,170 1,076 106,246 97,782 182,400 280,182
Charitable activities
Charitable activities 3 408,150 31,875 440,025 436,486 38,293 474,779
Other trading activities 4 13,051 - 13,051 2,992 - 2,992
investments 5 2,303 - 2,303 9,229 - 9,229
Total income 528,674 32,951 561,625 546,489 220,693 767,182
Expenditure on:
Charitable activities
CharitableActivities 6 719,398 25,071 744,469 691,135 29,476 720,611
Total expenditure 719,398 25,071 744,469 691,135 29,476 720,611
Net gains/(losses) on
investments 12 13,490 - 13,490 - - -
Net income/(expenditure) (177,234) 7,880 (169,354) (144,646) 191,217 46,571
Transfers between
funds - - - (233) 233 -
Net movement in
funds 9 (177,234) 7,880 (169,354) (144,878) 191,450 46,571
Reconciliation of funds:
Fund balances at 1 August
2024 633,466 201,815 835,281 778,345 10,365 788,710
Fund balances at 31 July
2025 456232 209,695 665,927 633,466 201,815 835,281

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

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HIGHLAND THEOLOGICAL COLLEGE

BALANCE SHEET

AS AT 31 JULY 2025

2025 2024
Notes £ £ £ £
Fixed assets
Tangible assets 14 618,213 643,607
Investments 15 157,557 165,038
775,770 808,645
Current assets
Debtors 16 27,526 34,493
Cash at bank and in hand 114,058 125,485
141,584 159,978
Creditors: amounts falling due within 18
one year (126,427) (98,342)
Net current assets 15,157 61,636
Total assets less current liabilities 790,927 870,281
Creditors: amounts falling due after
more than one year 19 (125,000) (35,000)
Netassets 665,927 835,281
The funds oftheCharitable company
Restricted income funds 20 209,695 201,815
Unrestricted funds 21 456,232 633,466
665,927 835,281
Thefinancialstatementswereapproved bytheTrusteeson21 Apau..2025
} fo
Dr
JAGrant
Trustees		 rD Macpherson
Trustees		 ——

The financial statements were approved by the Trustees on 21 Apau..2025 } fo TrusteesDr JA Grant Trusteesr D Macpherson

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HIGHLAND THEOLOGICAL COLLEGE

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 JULY 2025

2025 2024
Notes £ £ £ £
Cash flows from operating activities
Cash (absorbed by)/generated from 24
operations (122,250) 140,838
Investing activities
Purchase oftangible fixed assets (2,940) (4,261)
Purchase of investments - (165,038)
Proceeds from disposal of investments 20,971 -
Investment income received 2,303 9,229
Netcash generated from/{used in) investing
activities 20,334 (160,070)
Financing activities
Proceeds from borrowings 90,000 -
Net cash generatedfrom financing activities 90,000 -
Net decrease in cash and cash equivalents (11,916) (19,232)
Cash and cash equivalents at beginning ofyear 125,485 444,717
Cash and cash equivalents atend ofyear 113,569 125,485
Reiating to:
Cash atbank and in hand 414,058 425,485
Bank overdrafts included in creditors payable
withinoneyear (489) -

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HIGHLAND THEOLOGICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

Charity information

Highland Theological College is a private company limited by guarantee incorporated in Scotland. The registered office is High Street, Dingwall, Ross-shire, 1V15 9HA.

1.1. Basis of preparation The financial statements have been prepared in accordance with the Charitable company's governing document, the Companies Act 2006 the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of freland" and the Charities SORP “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)". The Charitable company is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the Charitable company. Monetary amounts in these financial statements are rounded to the nearest £.

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Charitable company.

1.4. Income Income is recognised when the Charitable company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Charitable company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the Charitable company has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

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HIGHLAND THEOLOGICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset's use.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial! activities.

Freehold Land and buildings:

The building was valued by CM Hail, Chartered Surveyors in October 2015 at £480,000. The depreciation policy has therefore been suspended (previously 2% straight line over 50 years), now that this net book value has been arrived at.

Improvements to proper ty:

Property improvements are depreciated over their estimated useful economic life at the rate of 10% per annum ona straight line basis.

Equipment:

Equipment costing less that £1,000 per individual item is written off to the income and expenditure account in the year of acquisition. All other equipment is capitalised at cost. Equipment is depreciated over its estimated useful economic life at the rate of 25% per annum on a straight line basis.

Library:

All books and resources purchased during the year are treated as fixed asset additions, net of any income received for disposals {if under £1,000). The library storage equipment and shelving are also included within this category. Depreciation is charged at the rate of 10% per annum on a reducing balance basis.

At each reporting end date, the Charitable company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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HIGHLAND THEOLOGICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

1 Accounting policies (Continued)

1.10 Financial instruments

The Charitable company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Charitable company's balance sheet when the Charitable company becomes party to the contractual 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 right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Charitable company’s contractual obligations expire or are discharged or cancelled.

1.11 Employee benefits

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 Charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

2 Income from donations and legacies

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2025 2025 2025 2024 2024 2024
£ £ £ £ £ £
Donations and gifts 89,115 1,076 90,191 85,271 182,400 267,671
Grants 11,414 - 11,414 3,121 ~ 3,121
Membership fees 4,641 - 4,641 9,390 - 9,390
105,170 1,076 106,246 97,782 482,400 280,182

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HIGHLAND THEOLOGICAL COLLEGE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

2 Income from donations and legacies (Continued)

3 Income from charitable activities

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2025 2025 2025 2024 2024 2024
£ £ £ £ £ £
Charitable activities
Student fee income 408,120 - 408,120 226,957 - 226,957
Grants - 31,875 31,875 197,255 38,293 235,548
Other income 30 - 30 12,274 - 12,274
408,150 31,875 440,025 436,486 38,293 474,779

Charitable grants received analysis

Charitable Charitable
activities activities
2025 2024
£ £
Sabbatical 12,740 -
PHD Scholarship 19,135 -
University ofthe Highlands & Islands - 16,122
Scottish Higher Education Funding Council - 220,426
31,875 235,548
Unrestricted Unrestricted
funds funds
2025 2024
£ £
Other income 13,051 2,992

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HIGHLAND THEOLOGICAL COLLEGE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

5 Income from investments

Unrestricted Unrestricted
funds funds
2025 2024
£ £
Rental income - 5,286
Interest receivable 2,303 3,943
2,303 9,229

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HIGHLAND THEOLOGICAL COLLEGE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

6 Expenditure on charitable activities

Charitable
Activities		 Charitable
Activities
2025 2024
£ £
Direct costs
Staffcosts 533,415 505,500
Depreciation and impairment 28,334 29,213
Tuition fees 2,883 2,729
Course expenses 4,561 21,619
UHI shared services 5,584 5,025
SBET costs 3,321 2,777
Bad debts - 455
Graduation costs 4,542 968
Rent, rates and insurance 33,458 30,260
Heat and light 51,801 58,121
Printing, postage and stationery 7,035 10,022
Telephone and internet 1,247 1,010
Computersupplies 6,587 4,887
Premises maintenance 11,524 17,873
Travel and training 8,952 9,352
General expenses 3,696 4,371
Bankcharges 1,159 1,089
705,099 705,271
Grant funding ofactivities (see note 7) 20,790 1,630
Share ofsupportand governance costs (see note 8)
Support - 433
Governance 18,580 13,277
744,469 720,611
Analysis by fund
Unrestricted funds 719,398 691,135
Restricted funds 25,071 29,476
744,469 720,611
7 Grants payable
Charitable
Activities		 Charitable
Activities
2025 2024
£ £
Grantstoindividuals 20,790 1,630

HIGHLAND THEOLOGICAL COLLEGE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

8 Support costs allocated to activities

9

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||||||||| |---|---|---|---|---|---|---|---| |Charitable|Total| |Activities| |2025|2024| |£|£| |Management|expenses|-|433| |Governance|18,580|13,277| |Net|movement|in|funds|2025|2024| |£|£| |The|net|movement|in|funds|is|stated|after charging/(crediting):| |Fees|payable|to|the|charity's|auditor:| |- for the|audit|of the|charity's|financial|statements|12,000|7,200| |- for other|financial|services|3,000|6,077| |Depreciation|of owned|tangible|fixed|assets|28,334|29,213|

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10 = Trustees

The members of the Board of Governors are not remunerated. The Principal and the Vice Principal are Governors by virtue of their positions they hold as Principal and the Vice Principal and the remuneration they receive is in respect of this.

  1. Employees

The average monthly number of employees during the year was:

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|||||| |---|---|---|---|---| |2025|2024| |Number|Number| |College|Principal|4|1| |College|Vice|Principal|2|2| |Administration|and|support|10|9| |Academic|8|11| |Development|1|4| |Total|22|24| |Employment|costs|2025|2024| |£|£| |Wages|and|salaries|533,415|505,500|

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Principal and Vice Principal (Academic) are counted here as managerial, but both also function as part of the academic staff.

There were no employees whose annual remuneration was more than £60,000.

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HIGHLAND THEOLOGICAL COLLEGE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

11. Employees (Continued)

Remuneration of key management personnel

The remuneration of key management personne! was as follows:

The key management personnel consists of the Principal, Vice Principal Operations and Finance and Vice Principal Academic. Their aggregate emoluments during the year was £124,575.

12. Gains and losses on investments

Unrestricted Unrestricted
funds funds
2025 2024
Gains/(losses) arising on: £ £
Revaluationofinvestments 13,490 .

13 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

14

Tangible fixed assets

Tangible fixed assets
Freehold iand
and buildings		 Leasehold
improvements		 Library Plantand
Equipment		 Total
£ £ £ £ £
Cost or valuation
At 1 August 2024 842,186 171,822 150,018 236,047 1,400,073
Additions - - 650 2,290 2,940
At 31 July 2025 842,186 171,822 150,668 238,337 1,403,013
Depreciation and impairment
At 1 August2024 362,186 105,525 147,671 141,084 756,466
Depreciation charged in the year - 17,182 4,427 9,725 28,334
At 31 July 2025 362,186 122,707 149,098 150,809 784,800
Carrying amount
At 31 July 2025 480,000 49,115 4,570 87,528 618,213
At34July2024 480,000 66,297 2,347 94,963 643,607

Land and buildings with a carrying amount of £480,000 were revalued in October 2015 by D M Hall, independent valuers not connected with the Charitable company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties. At the point of valuation the depreciation policy was suspended (previously straight line over 50 years)

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HIGHLAND THEOLOGICAL COLLEGE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

15 Fixed asset investments

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||||||||| |---|---|---|---|---|---|---|---| |Listed| |investments| |£| |Cost|or|valuation| |At|1|August 2024|165,038| |Valuation|changes|13,490| |At|31|July|2025|178,528| |Carrying|amount| |At|37|July 2025|178,528| |At 31|July|2024|465,038| |16|Debtors| |2025|2024| |Amounts|failing|due|within|one|year:|£|£| |Trade|debtors|23,302|16,862| |Other debtors|-|13,504| |Prepayments|and|accrued|income|4,224|4,127| |27,526|34,493| |17|Loans|and|overdrafts| |2025|2024| |£|£| |Bank|overdrafts|489|-| |Other|loans|125,000|35,000| |125,489|35,000| |Payable|within|one|year|489|-| |Payable|after one year|125,000|35,000|

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HIGHLAND THEOLOGICAL COLLEGE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

18 Creditors: amounts falling due within one year

18 Creditors: amounts falling due within one year
2025 2024
Notes £ £
Bank overdrafts 17 489 -
Othertaxation and social security 10,216 8,057
Trade creditors 6,390 7,661
Othercreditors 36,907 32,314
Accruals and deferred income 72,425 50,310
126,427 98,342
19 Creditors: amounts falling due aftermorethan one year
2025 2024
£ £
Borrowings 125,000 35,000

20 ~=—~ Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants heid on trust subject to specific conditions by donors as to how they may be used.

At 1 August
2024		 Incoming
resources		 Resources
expended		 Transfers At 31 July
2025
£ £ £ £ £
Hardshipfund 19,415 336 (5,186) - 14,565
Researchfund 182,400 740 (750) - 182,390
Scholarfund - 31,875 (19,135) - 12,740
201,815 32,951 (25,071) ~ 209,695
Previous year: At 1 August
2023		 incoming
resources		 Resources
expended		 Transfers At31 July
2024
£ £ £ £ £
Hardship fund 10,365 15,121 (6,071) - 19,415
Research fund ~ 182,400 - - 182,400
Sabbaticalfund
Scholarfund		 -
-		 5,000
18,172		 (5,233)
(18,172)		 233
-		 -
-
10,365 220,693 (29,476) 233 201,815

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HIGHLAND THEOLOGICAL COLLEGE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

20 ~=—~ Restricted funds (Continued)

Hardship - to provide students with financial and mental well being support.

Scholarship - to fund PHD scholarships for students.

Research- to fund research into reformed theology and employ a research professor.

Sabbatical - UHI funded an employee to travel to the USA to present a paper.

21. ~~Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 August Incoming Resources Transfers Gains and At 31 July
2024 resources expended losses 2025
£ £ £ £ £ £
General funds 633,466 §28,674 (719,398) - 13,490 456,232
Previous year: At1 August incoming Resources Transfers Gains and At 31 July
2023 resources expended losses 2024
£ £ £ £ £ £
General funds 778,345 546,489 (691,135) (233) - 633,466
~=Analysis of net assets between funds
Unrestricted Restricted Total
funds funds
2025 2025 2025
£ £ £
At 31 July 2025:
Tangible assets 618,213 - 618,213
Investments - 157,557 157,557
Current assets/(liabilities) (36,981) 52,138 15,157
Long term liabilities (125,000) - (125,000)
456,232 209,695 665,927

22 ~=Analysis of net assets between funds

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HIGHLAND THEOLOGICAL COLLEGE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

22 ~=Analysis of net assets between funds (Continued)

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||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---| |Unrestricted|Restricted|Total| |funds|funds| |2024|2024|2024| |£|£|£| |At|31|July|2024:| |Tangible|assets|643,607|-|643,607| |Investments|-|165,038|165,038| |Current|assets/(liabilities)|24,859|36,777|61,636| |Long|term|liabilities|(35,000)|-|(35,000)| |633,466|201,815|835,281| |23|~=—sRelated|party|transactions| |There|were|no|related|party|transactions|for|the|year ended|31|July|2025.| |24|Cash|(absorbed|by)/generated|from|operations|2025|2024| |£|£| |(Deficit)/surplus|for the|year|(169,354)|46,571| |Adjustments|for:| |Investment|income|recognised|in|statement|of financial|activities|(2,303)|(9,229)| |Fair|value|gains|and|losses|on|investments|(13,490)|-| |Depreciation|and|impairment|of tangible|fixed|assets|28,334|29,213| |Movements|in|working|capital:| |Decrease|in|debtors|6,967|32,921| |Increase|in|creditors|27,596|41,362| |Cash|(absorbed|by)/generated|from|operations|(122,250)|140,838| |25|Analysis|of changes changes|in|net debt debt| |At|1|August|2024|Cash|flows Acquisitions|and|At|31|July|2025| |disposais| |£|£|£|£| |Cash|at|bank|and|in|hand|125,485|(11,427)|-|114,058| |Bank overdrafts|-|(489)|~|(489)| |125,485|(11,916)|-|113,569| |Loans|falling|due|within|one|year|-|90,000|(90,000)|-| |Loans|falling|due|after more|than|one|year|(35,000)|(90,000)|-|(125,000)| |90,485|(11,916)|(20,000)|(11,431)|

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25 Analysis of changes changes in net debt debt

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HIGHLAND THEOLOGICAL COLLEGE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

26 Non-audit services provided by auditor

In common with many businesses of our size and nature we use our auditor to assist with the preparation of the financial statements.

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