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← Free Church Of Scotland (Continuing)

2025-12-31-accounts

Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Scottish Charity Number: SC030976

Free Church of Scotland (Continuing) Annual Report and Financial Statements for the year ended 31 December 2025

Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing)

Contents

Page
Report of the Trustees 1
Report of the Independent Auditor 9
Statement of Financial Activities 13
Balance Sheet 14
Cash Flow Statement 15
Notes to the Financial Statement 16
Detailed Statement of Financial Activities 31

Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing) Report of the Trustees for the year ended 31 December 2025

The Trustees present their report together with the financial statements of the charity for the year ended 31 December 2025. The Trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Objectives and Activities

Objectives and aims

The overall object of the Church, as a Christian denomination seeking to maintain conformity with the Bible as the Word of God, is to glorify God through maintaining and promoting His worship in accordance with the Bible, through the preaching and teaching of the Gospel of the Lord Jesus Christ and the administration of the sacraments of Baptism and the Lord's Supper. In carrying out its objectives of spreading the Gospel of Christ the Church has a full-time ministry.

Significant activities

The principal activity of the Church is the conduct of public worship and associated activities through local congregations and Presbyteries. Work is also organised, promoted and carried out by Standing Committees appointed by and accountable to the General Assembly.

The ministers/pastors of the denomination function on a full-time basis and are paid from a central fund supported by all of the local congregations. Each minister is paid exactly the same amount of stipend (salary) from the central fund, currently £25,000 per annum. Reimbursement to each minister, of locally-incurred expenses is covered by his local Deacons' Court and varies from congregation to congregation.

The denomination maintains a Seminary for the theological training of students for the ministry. This is staffed part-time by ministers already in charges and by retired ministers, and involves a combination of distance learning and tutorial work in a building located in Inverness.

Besides the work of a full-time ministry the Church is involved in producing publications germane to its principles, publishes a monthly magazine entitled Free Church Witness, operates a web-site www.freechurchcontinuing.org and produces a young people's magazine entitled The Explorer. The Church also supports missionary work in Canada, Zambia, Sri Lanka, Spain, France and Portugal.

Achievement and Performance

Charitable activities

The principal activity of the Church is the conduct of public worship and associated activities through local congregations and Presbyteries, and through missionary work both in this country and abroad.

Financial Review

Financial position

During the year in review there was a surplus of income over expenditure for the year of £175,833 compared to a surplus in the previous year of £102,587. Legacies of £235,233 were received in 2025, £90,000 of which were returned to a local congregation, (2024 - £51,421). Ordinary remittances from congregations were down by £17,987 (2.6%) on the previous year, with the total of congregational remittances for 2025 at £683,244. Expenditure was £953,111 (2024 - £748,787) with payroll costs up by £14,992 (3.1%) at £496,866 compared to the previous year.

The total assets and funds of the denomination at the end of 2025 amounting to £1,736,729 (2024 - £1,560,896), was up by £175,833 (11.3%) compared to the previous year. The total funds of £1,736,729 represents the unrestricted general fund of £1,190,620, designated funds of £454,076 and restricted funds of £92,033. Full details of the charity's funds are included in the notes to the financial statements.

Page 1

Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing) Report of the Trustees for the year ended 31 December 2025

Financial Review (continued)

Financial position (continued)

Four manse properties were purchased in 2014 for the congregations of Edinburgh, Partick, North Uist and Duthil-Dores at a total cost of £1,005,050. Loans were taken out with Stewardship Ltd for a total of £532,000 repayable over 15 years. After receipt of annual mortgage loan repayments from these four congregations and an additional repayment of £100,000 in 2015 by the denomination to reduce the interest costs, a total amount of £nil now remains outstanding on these loans.

Aside from North Uist (further details below), all of these loans have been repaid in full and the title deeds of the manse properties have been transferred into the local congregations name in previous years.

In 2020, the mortgage on the North Uist manse was repaid in full. In October 2025 the £23,000 loan received in 2014 to help pay the initial deposit, had a remaining balance outstanding of £4,365. The Finance & Sustentation Committee agreed to issue a grant of £4,365 in October 2025 to cover this balance. Therefore, once the £25,000 loan received in 2015 has been repaid, (the balance being £24,800 at 31 December 2025), the title deeds will be transferred to the congregation.

A further manse property was purchased in 2016 for the congregation of Bracadale & Duirinish at a cost of £190,000. This was also part funded by a loan with Stewardship Ltd of £70,000. In 2022, the congregation repaid that loan in full and therefore the title deeds are in the process of being transferred.

A further manse property was purchased in 2019 for the congregation of Brora at a cost of £190,100. This was also part funded by a loan with Stewardship Ltd of £105,000. In February 2023, the denomination settled the balance of £55,510 on the loan and brought the full balance in-house interest free. The term of the original loan was 15 years, but the repayments to the denomination was over 20 years, as such the interest-free loan balance was £62,682. After receipt of significant loan repayments from the congregation in the year, (totalling £26,532), a balance of £20,000 remains outstanding on this loan.

In the 2021, a loan was also taken out with Stewardship Ltd of £95,000 in order to assist in the funding of the church building project in Poolewe & Aultbea. In February 2023, the denomination settled the balance of £42,918 on the loan and brought the full balance in-house interest free. After receipt of loan repayments from the congregation, a total amount of £5,202 remains outstanding on this loan.

In February 2019 a loan facility of £75,000 was arranged between the denomination and the congregation of Shettleston to assist them in their acquisition of the title to their present church and manse. The amount of £67,200 remains outstanding on this loan.

In October 2025, the Finance and Sustentation Committee agreed to issue grants to several congregations which had denominational loan balances still outstanding pertaining to manse/church improvements loans. The total sum granted was £16,245 (North Uist and Grimsay, £4,365; Harris, £1,200; and Kilmuir and Stenscholl, £10,680).

In December 2025, the denomination disposed of the property at 85 Old Edinburgh Road, Inverness, IV2 3HT for a sum of £210,000, realising a gain on the original purchase of in excess of £80,000. The accounts report a loss of £35,000 as a result of a difference between the realised proceeds and the estimated market valuation as provided by Peter Murphy & Co Estate Agents in October 2023.

Page 2

Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing) Report of the Trustees for the year ended 31 December 2025

Financial Review (continued)

Financial position (continued)

Two grants totalling £20,000 (2024: £15,865) were issued to congregations in the year relating to improvement/remedial works at church properties (Shettleston, £10,000 and Tarbat, £10,000) (2024: Knightswood, £5,865 and Inverness, £10,000).

Principal funding sources

The principal funding resource of the Church is represented by the ordinary remittances of sums received monthly from congregations. These ordinary remittances represented 60.5% of total incoming resources in 2025. They are predominantly used for the payment of stipends (Ministers' salaries) and other payroll costs including amounts for pension provision. The payroll-related costs accounted for £496,866 and represented 72.7% of congregational ordinary remittances to central funds in 2025.

Reserves policy

The General fund and Designated fund represent the unrestricted funds from past operating results. They also represent the free reserves of the charity. The Trustees have resolved, to set unrestricted reserves at £300,000. This takes into account a monthly stipend and salary commitment of approximately £44,200 for six months. The church maintains Designated buildings fund for fixed assets, comprised of the Net Book Value of the properties, plus congregational loans. The Designated Death in Service fund is held at a balance around the amount of a ministers annual stipend plus corresponding employers NIC costs in any year. The Trustees consider that the level of the unrestricted reserves held in the General fund at 31 December 2025 equating to approximately 15 months operating expenditure, is sufficient to meet the charity's operational requirements taking account of the regular monthly contributions being received from congregations.

At the year-end there were total funds of £1,736,729 (2024: £1,560,896), which is made up as follows:

2025 2024
£ £
Restricted funds of 92,033 58,417
Designated funds of 454,076 771,341
Unrestricted funds of 1,190,620 731,138

Grant making policy

The church makes grants to organisations whose activities are compatible with the church’s own objectives. Details of grants made during 2025 are outlined in Note 8 on page 25.

Plans for the Future

The Finance & Sustentation Committee and the General Treasurer intend to continue to run the Church's financial affairs in such a manner that ensures its financial stability and assists in the carrying out the work to which it is committed. The Finance & Sustentation Committee and the General Treasurer believe that the Church's assets are available and sufficient to fulfil its present obligations.

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Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing)

Report of the Trustees for the year ended 31 December 2025

Structure, Governance and Management

History

The Free Church of Scotland (Continuing) claims continuity with the Free Church of Scotland which historically came into being in 1843 as a result of the "Disruption" within the Church of Scotland as then constituted. In maintaining this continuity, the Free Church of Scotland (Continuing) identifies itself with the Free Church of Scotland that continued in existence in 1900 after the union of the then majority of the Free Church with the United Presbyterian Church.

Consequent upon actions and judgements within the Free Church of Scotland as then constituted, between June 1999 and January 2000, a Declaration of Reconstitution was adopted on 20 January 2000 by a minority of ministers and elders. They claimed to be more faithful to the constitutional principles of the Free Church of Scotland than the remainder of the former Free Church and thus legitimately and constitutionally sought to continue as the Free Church of Scotland, henceforth to be known for administrative reasons only as the Free Church of Scotland (Continuing).

Constitution

The constitutional documents of the Free Church of Scotland of 1843 remain the founding documents of the Free Church of Scotland (Continuing).

An explanatory document is available detailing the documents within which is embodied the constitution of the Church.

The Free Church of Scotland (Continuing) is an unincorporated association and was registered as a charity on 20 January 2000. Act of Assembly XVII, dated 22nd May 2014 asserts:-

The General Assembly reaffirm that they are the true bona fide successor of the Free Church of Scotland of 1843. 2. The General Assembly hereby declare that legislation enacted by the Free Church of Scotland prior to 20th January 2000 applies to the Free Church of Scotland (Continuing) in the same way as any legislation enacted by the said Free Church of Scotland (Continuing) after 20th January 2000.

Structure

The Church is Presbyterian in Church government and is therefore ruled and governed by ministers and elders acting through Kirk Sessions of local congregations, Presbyteries, Synods, and the General Assembly. It is Reformed and Evangelical in doctrine and practice and conforms to full subscription to the Westminster Confession of Faith.

Governance and Management

The General Assembly annually appoints Standing Committees for the management of the central work of the Church. Consequently, a Finance and Sustentation Committee together with the General Treasurer are presently responsible for the financial management of the Church's resources, for which they are answerable to the General Assembly. Membership of the General Assembly is annually commissioned by each Presbytery in accordance with Assembly legislation and comprises all Ministers who have a seat in Presbytery with an approximately equal number of ruling elders, together with such Ministers as may be appointed by the Missions Committee and a corresponding number of ruling Elders. At present there are four Presbyteries covering the entire geographical area of Scotland. A Nominations Committee of the General Assembly annually puts forward for acceptance by the Assembly the names of ministers and elders for service on the various Standing Committees representing a range of work and interests consistent with the constitution, objectives and activities of the Church. These are selected with reference to representation of the various Synods and Presbyteries throughout the Church as detailed in the Standing Orders of Assembly. Membership of Committees is constantly changing because the replacement of men is on a staggered basis.

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Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing)

Report of the Trustees for the year ended 31 December 2025

Financial Management

Mr. Murray Mackay, General Treasurer, is accountable to the Finance and Sustentation Committee for the management of the financial affairs of the Church. Mrs. Donna Norris, Financial Administrator, is responsible for the maintenance of all financial records and book-keeping functions and reports to the General Treasurer.

The members of the Finance & Sustentation Committee during the year 2025 were as follows:

Rev. James I. Gracie (Edinburgh), Convener

Rev. Thomas J. Buchanan (Brora)

Rev. Greg MacDonald (Ness, Isle of Lewis), (Resigned on 21 May 2025)

Recruitment and appointment of new Trustees

Under legislation approved by the General Assembly every Presbytery of the Church in Scotland has the right to nominate a person to represent them on the Board of General Trustees. On a rotational basis, each Presbytery will nominate an additional trustee to serve for a period of five years. The appointment of Trustees is finally approved by the General Assembly which meets in May each year. On the basis of the original structure of Presbyteries in Scotland, the Board of General Trustees will normally consist of five persons. The Board of the General Trustees elects their Chairman and Vice Chairman from amongst their own number. Each Trustee serves for five years and is eligible for re-appointment. On the basis of current Assembly legislation Trustees are bound to retire and be replaced on their having attained the age of 80 years.

Induction and training of new trustees

The charity will undertake training for newly appointed Trustees to ensure awareness and understanding of:-

Significance of volunteers

The denomination could not deliver the range of activities in furtherance of its aims without the consistent and generous time committed by a large number of volunteers.

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Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing)

Report of the Trustees for the year ended 31 December 2025

Risk Management

The Trustees have a duty to identify and review the risks to which the charity may be exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. The principal potential risks and uncertainties faced by the charity include:-

  1. changes in charitable status.

  2. changes in Gift Aid legislation.

  3. insufficient incoming financial resources.

  4. compliance with laws and regulations including health & safety and employment regulations and PVG legislation.

The charity's plans to manage principal risks and uncertainties include: the review of the major risks that the charity faces on an ongoing basis; the establishment of policies, systems and procedures to mitigate those risks that may be identified; and the implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise.

Denominational Trustees

The Denominational Trustees who served during the year were A I Naylor, J N Gillies, L M MacCallum (resigned on 21 May 2025) M MacDonald, T MacInnes and A Manderson (appointed on 21 May 2025). Denominational Trustees are elected as required in order that property belonging to the congregation may be held in the names of these elected trustees. Their duties are to hold properties in trust and sign necessary documents connected with ownership or sale when duly authorised.

Key Management Personnel Remuneration

The key management personnel of the charity comprise the trustees. No employee benefits were received by the trustees during the year to 31 December 2025 (2024: £nil).

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Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing) Report of the Trustees for the year ended 31 December 2025

Reference and administrative details

Trustees

A I Naylor, Chairman L M MacCallum, Vice-chairman (Resigned 21 May 2025) M MacDonald T MacInnes J N Gillies A Manderson, Vice-chairman (Appointed 21 May 2025)

Outer Hebrides Presbytery Free Northern Presbytery Free Northern Presbytery Skye & Lochcarron Presbytery Southern Presbytery Southern Presbytery

Principal address

c/o General Treasurer Copperfield House Culloden Road Westhill Inverness IV2 5BP

Registered Charity number

SC030976

Auditors

Jonathan N Innes FCCA Innes & Partners Chartered Certified Accountants & Statutory Auditors 9 Ardross Street Inverness IV3 5NN

Bankers

Bank of Scotland Virgin Money Royal Bank of Scotland 47 Cromwell Street 15 Academy Street Cartsdyke Avenue Cartsburn East Stornoway Inverness Greenock Isle of Lewis IV1 1JN PA15 1E HS1 2DD

Kingdom Bank Flagstone Group Ltd Media House 1[st] Floor, Clareville House Padge Road 26-27 Oxendon Street Beeston London Nottingham SW1Y 4EL NG9 2RS

Solicitors

Lindsays Caledonian Exchange 19a Canning Street Edinburgh EH3 8HE

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Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing)

Report of the Trustees for the year ended 31 December 2025

Signatories

It is believed that the Accounts and the Report thereon conform to the law regulating Charities in Scotland. The law requires that the Report and Accounts be approved by the "persons in management and control." It is assumed that this refers to the Finance & Sustentation Committee appointed by the General Assembly of the Free Church of Scotland (Continuing) to oversee the financial affairs of the church. By appointment of the Finance and Sustentation Committee the Accounts are signed by the Convener of the Finance & Sustentation Committee and the Chairman of the General Trustees.

Trustees’ Responsibilities in relation to the Financial Statements

The Trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in Scotland, the Charities and Trustee Investment (Scotland) Act 2005, Charities Accounts (Scotland) Regulations 2006 and the provisions of the charity's constitution require the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity, of the incoming resources and application of these resources, including the income and expenditure of the charity for that period. In preparing those financial statements, the Trustees are required to

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

02.04.2026

Approved by order of the Board of General Trustees on ........................... and signed on its behalf by:

[HeinleAF63BB06286B406... Dr. Andrew I. Naylor Chairman

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Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing)

Report of the Independent Auditor to the Trustees for the year ended 31 December 2025

Opinion

We have audited the financial statements of Free Church of Scotland (Continuing) (the ‘charity’) for the year ended 31 December 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement 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:

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 responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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 to small entities in the circumstances set out in note 19 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 charity'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 trustees 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.

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Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing)

Report of the Independent Auditor to the Trustees for the year ended 31 December 2025

Other information (continued)

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 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 7, the trustees 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 charity’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 charity or to cease operations, or have no realistic alternative but to do so.

Auditor 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 report in accordance with regulations made under that Act.

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.

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Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing)

Report of the Independent Auditor to the Trustees for the year ended 31 December 2025

Auditor responsibilities for the audit of the financial statements (continued)

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

Audit response to risks identified

To address the risk of fraud through management bias and override controls, we:

In response to risks of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing)

Report of the Independent Auditor to the Trustees for the year ended 31 December 2025

Auditor responsibilities for the audit of the financial statements (continued)

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the FRC’s website at: https://www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-audit-of-thefi/description-of-the-auditor%E2%80%99s-responsibilities-for. This description forms part of our auditors report. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the charity’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 charity’s 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

[denaDocuSigned Innesby:

Jonathan N Innes FCCA

Senior Statutory Auditor

For and behalf of Innes and Partners Limited, Statutory Auditor

Eligible to act as an auditor in terms of section 1212 of the Companies Act 2006. 9 Ardross Street

Inverness IV3 5NN

02.04.2026 Date ………………

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Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing)

Statement of Financial Activities for the year ended 31 December 2025

Note
Income
Donations and Legacies
4
Charitable Activities
5
Investments
6
Total Income
Expenditure
Raising Funds
7
Charitable Activities
7
Total Expenditure
Transfers between funds
16,17
Net Movement in Funds
Reconciliation of Funds
Total Funds Brought Forward
Total Funds Carried Forward
16
Net income/(expenditure) before gains/(losses)
on investments		 Unrestricted
Funds
£
915,390
36,087
22,965		 Designated
Funds
£
-
-
223		 Restricted
Funds
£
154,087
-
192		 Total
Funds
2025
£
1,069,477
36,087
23,380
1,128,944
994
952,117
953,111
175,833
-
175,833
175,833
1,560,896
1,736,729		 Total
Funds
2024
£
804,477
29,877
17,020
974,442 223 154,279 851,374
994
778,633		 -
40,776		 -
132,708		 1,046
747,741
779,627 40,776 132,708 748,787
194,815
264,667		 (40,553)
(276,712)		 21,571
12,045		 102,587
-
459,482 (317,265) 33,616 102,587
459,482
731,138		 (317,265)
771,341		 33,616
58,417		 102,587
1,458,309
1,190,620 454,076 92,033 1,560,896

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Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing) Balance Sheet as at 31 December 2025

Total Total
**Note ** Unrestricted Designated Restricted Funds Funds
Funds Funds Funds 2025 2024
£ £ £ £ £
Fixed Assets
Tangible assets 11 - 299,704 10,265 309,969 589,846
Total Fixed Assets - 299,704 10,265 309,969 589,846
Current Assets
Stock 12 1,852 - - 1,852 1,865
Debtors falling due within one year 13 72,743 23,502 - 96,245 115,894
Debtors falling due after more than one year 13 2,814 99,875 - 102,689 145,781
Cash at Bank and in Hand 190,517 30,995 81,768 303,280 350,953
Cash held on Deposit 947,899 - - 947,899 380,434
Total Current Assets 1,215,825 154,372 81,768 1,451,965 994,927
Liabilities
Creditors falling due within one year 14 25,205 - - 25,205 23,877
Net Assets 1,190,620 454,076 92,033 1,736,729 1,560,896
The Funds of the Charity
Restricted Income Funds - - 92,033 92,033 58,417
Unrestricted Funds 1,190,620 - - 1,190,620 731,138
Designated Funds - 454,076 - 454,076 771,341
Total Charity Funds 16 1,190,620 454,076 92,033 1,736,729 1,560,896

The notes at pages 16 to 30 form part of these accounts 02.04.2026 The financial statements were approved by the Board of Trustees and authorised for issue on ….................... and signed on their behalf by:

Dr. Andrew I. Naylor Chairman

Rev. James. I. Gracie

Convenor, Finance & Sustentation Committee

Page 14

Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing)

Statement of Cash Flows as at 31 December 2025

Cash flows from by operating activities
Adjustments for:
Depreciation charges
Loss/(profit) on sale of assets
Interest received
Decrease/(increase) in stocks
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Net cash provided by operating activities
Cash flows from investing activities:
Purchase of tangible fixed assets
Proceeds on sale of tangible fixed assets
Interest received
Net cash used by investing activities
Change in cash and cash equivalents in the year
Cash and equivalents brought forward
Cash and cash equivalents carried forward
Cash at Bank and in Hand
Cash held on Deposit
Cash and cash equivalents carried forward		 Total
Funds
2025
£
175,833
34,877
35,000
(23,380)
13
62,741
1,328
286,412
-
210,000
23,380
233,380
519,792
731,387
1,251,179
303,280
947,899
1,251,179		 Total
Funds
2024
£
102,587
20,670
306
(17,020)
4
8,656
2,254
117,457
(599)
-
17,020
16,421
133,878
597,509
731,387
350,953
380,434
731,387

The notes at pages 16 to 30 form part of these accounts

Page 15

Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing)

Notes to the Financial Statements for the year ended 31 December 2025

1. Accounting Policies Basis of Preparation

Free Church of Scotland (Continuing) is an unincorporated association registered in Scotland. The address of the principal office is given in the charity information on page 6 of these financial statements. The nature of the charity’s operations and principal activities are included in the trustees report on pages 1 – 8.

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) ’Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 ’The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Charities and Trustee Investment (Scotland) Act 2005. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.

The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Going Concern

The management team have prepared projections for the periods to 31 December 2026 and 31 December 2027. The Trustees have reviewed the projections, based on this review, have a reasonable expectation that the charity has adequate resources to continue in operation for a period of at least 12 months from the approval of the financial statements. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions that affect the amounts reported for assets, liabilities, income and expenditure.

The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in future periods should it affect future periods.

Page 16

Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing)

Notes to the Financial Statements for the year ended 31 December 2025

1. Accounting Policies (continued) Critical accounting judgements and key sources of estimation uncertainty (continued)

The estimates and assumptions which carry a higher degree of risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

Useful economic lives of tangible fixed assets

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. They are amended when necessary to reflect current estimates, future investment, economic utilisation and the physical condition of the assets. See note 11 for details of the values of tangible fixed assets.

Valuation of properties

The valuation of residential properties is carried out by professionals every 5 years and reliance is placed on their opinion as experts in their field. The valuation of church buildings is carried out by The Trustee’s who seek professional advice from experts in the field every 5 years.

Income Recognition

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the income, there is sufficient certainty of receipt and so it is probable that the income will be received, and the amount of income receivable can be measured reliably. Income received in advance is deferred until the criteria for income recognition are met.

Grants generated to support the objects of the charity and without further specified purpose are taken to the Statement of Financial Activities in that period. Grants received which are related to capital expenditure or are for a specified purpose are transferred to Restricted Funds and are utilised to fund the future depreciation of the related capital expenditure or fund the costs relating to the specified purpose.

Donated goods & Services

Donated services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and the economic benefit can be measured reliably. On receipt, donated services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Donated goods are measured at their value unless it is impractical to measure the fair value reliability. Fair values are estimated based on the cost of the item to the donor.

Page 17

Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing)

Notes to the Financial Statements for the year ended 31 December 2025

1. Accounting Policies (continued) Expenditure Recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. The charity is not registered for VAT, irrecoverable VAT is charged against the category of resources expended for which it was incurred.

Raising funds

Costs of generating funds comprise the costs associated with attracting voluntary income.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its objects and activities. It includes both costs that can be allocated directly to such activities and those costs

of an indirect nature necessary to support them. The allocation of direct and support costs are analysed in the notes to the financial statements.

Governance costs

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include audit fees and costs linked to the strategic management of the charity.

Allocation and apportionment of costs

All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis e.g. estimated usage.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property in accordance with the property Fixtures and fittings 25% on reducing balance Motor vehicles 10% on cost Computer equipment 25% on reducing balance and 25% on cost

Properties not funded by loans are depreciated at 2% per annum on a straight line basis.

Tangible fixed assets are stated at cost/revaluation less accumulated depreciation. The costs of minor additions or those costing below £100 are not capitalised.

Page 18

Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing)

Notes to the Financial Statements for the year ended 31 December 2025

1. Accounting Policies (continued)

Revaluation policy

Properties are shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. Revalued properties are then depreciated in line with the policies above.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cash at bank and in hand

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.

Cash held on Deposit

Cash held on deposit includes deposits held at call with banks with maturities of three months or more.

Taxation

The charity is exempt from tax on its charitable activities.

Funds Structure

Unrestricted funds – can be used in accordance with the charitable objectives at the discretion of the trustees.

Designated funds - unrestricted funds earmarked by the trustees for particular purposes. Restricted funds – can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pensions

The charity operates a defined contribution pension scheme. Contributions payable to the charity’s pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Financial instruments

The charity's financial assets and financial liabilities qualify as basic financial instruments which are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank and other loans which are subsequently measured at amortised cost.

Concessionary loans

Loans receivable include concessionary loans made to congregations and individuals which are interest free or below market rates and are measured at cost less repayments or any impairment.

Page 19

Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing)

Notes to the Financial Statements for the year ended 31 December 2025

2. Related Party Transactions and Trustees’ Expenses and Remuneration There were no trustees’ remuneration or other benefits for the year ended 31 December 2025 (2024: £nil).

There were no trustees' expenses paid for the year ended 31 December 2025 (2024: £nil).

The following related party transactions took place in the year ended 31 December 2025:

During the year, Poolewe & Aultbea Free Church of Scotland (Continuing), a charity where Murdo MacDonald, Trustee, is also a trustee of, made loan repayments of £7,800 (2024: £16,370). At 31 December 2025 the balance owing to the charity was £5,202 (2024: £13,002). The charity also received donations from Poolewe & Aultbea Free Church of Scotland (Continuing) totalling £nil (2024: £9,800).

During the year, the charity also received donations from Partick Free Church of Scotland (Continuing) a charity where John Gillies, Trustee, is also a trustee of, totalling £54,000 (2024: £54,000).

During the year, the charity also received donations from Knightswood Free Church of Scotland (Continuing) a charity where Alastair Manderson, Trustee (appointed 21 May 2025), is also a trustee of, totalling £29,000 (2024: £29,236).

Page 20

Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing)

Notes to the Financial Statements for the year ended 31 December 2025

3. Statement of Financial Activites for the year ended 31 December 2024

Income
Donations and Legacies
Charitable Activities
Investments
Total Income
Expenditure
Raising Funds
Charitable Activities
Total Expenditure
Transfers between funds
Net Movement in Funds
Reconciliation of Funds
Total Funds Brought Forward
Total Funds Carried Forward
4. Donations and Legacies
Congregations
Donations
Legacies
Seminary books and fees
Other income
Donations and Legacies - Comparatives
Congregations
Donations
Legacies
Seminary books and fees
Net income/(expenditure) before gains/(losses) on
investments		 Unrestricted
Funds
£
683,244
21,584
206,667
1,842
2,053		 Unrestricted
Funds
£
761,369
29,877
16,495		 Designated
Funds
£
-
-
285		 Restricted
Funds
£
43,108
-
240
43,348
-
48,140
48,140
(4,792)
3,382
(1,410)
59,827
58,417
Total
Funds
2025
£
683,244
146,105
235,233
1,842
3,053
1,069,477
Total
Funds
2024
£
701,231
51,790
51,421
35
804,477		 Total
Funds
2024
£
804,477
29,877
17,020
807,741 285 851,374
1,046
688,314		 -
11,287		 1,046
747,741
689,360 11,287 748,787
118,381
8,964		 (11,002)
(12,346)		 102,587
-
127,345
603,793		 (23,348)
794,689		 102,587
1,458,309
731,138 771,341 1,560,896
Designated
Funds
£
-
-
-
-
-		 Restricted
Funds
£
-
124,521
28,566
-
1,000		 Total
Funds
2024
£
701,231
51,790
51,421
35
-
915,390 - 154,087 804,477
Unrestricted
Funds
£
701,231
9,682
50,421
35		 Designated
Funds
£
-
-
-
-		 Restricted
Funds
£
-
42,108
1,000
-
761,369 - 43,108

Page 21

Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing)

Notes to the Financial Statements for the year ended 31 December 2025

5. Charitable Activities
Magazine subscriptions
Publications and CDs
Stock movement
Camp income
Conference income
Rental income
Charitable Activities - Comparatives
Magazine subscriptions
Publications and CDs
Stock movement
Camp income
Conference income
6. Investments
Deposit interest
Car loan interest
Investments - Comparatives
Deposit interest
Car loan interest		 Unrestricted
Funds
£
17,726
403
(13)
9,013
3,568
5,390		 Designated
Funds
£
-
-
-
-
-
-		 Restricted
Funds
£
-
-
-
-
-
-		 Total
Funds
2025
£
17,726
403
(13)
9,013
3,568
5,390
36,087
Total
Funds
2024
£
15,494
2,006
(4)
8,535
3,846
29,877
Total
Funds
2025
£
23,157
223
23,380
Total
Funds
2024
£
16,794
226
17,020		 Total
Funds
2024
£
15,494
2,006
(4)
8,535
3,846
-
36,087 - - 29,877
Unrestricted
Funds
£
15,494
2,006
(4)
8,535
3,846		 Designated
Funds
£
-
-
-
-
-		 Restricted
Funds
£
-
-
-
-
-		 Total
Funds
2024
£
16,794
226
29,877 - -
Unrestricted
Funds
£
22,742
223		 Designated
Funds
£
223
-		 Restricted
Funds
£
192
-
22,965 223 192 17,020
Unrestricted
Funds
£
16,269
226		 Designated
Funds
£
285
-		 Restricted
Funds
£
240
-
16,495 285 240

Page 22

Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing)

Notes to the Financial Statements for the year ended 31 December 2025

**7. ** Analysis of Expenditure
Note
Raising Funds
Freewill offering envelopes
Charitable Expenditure
Direct costs
Staff costs
9
Supply Cost
Home and foreign missions
Presbytery of N&A
Denominational Support to Presbytery of N&A
Camp expenses
Conference expenses
General assembly (net cost)
Magazine
Donations and grants
8
Sabbath School prizes
Depreciation
Loss/(gain) on sale of assets
Total direct costs
Management and support costs
Staff costs
9
Rent
Insurance
Stationery
Postage
Printing and publications
Materials for seminary lecturers
Travel
Fees and subscriptions
Presentations
Bank fees
General charges
Total management and support costs
Governance
Auditors' remuneration
Legal fees
Total governance expenditure
Total charitable expenditure
Total expenditure		 Unrestricted
Funds
£
994		 Designated
Funds
£
-		 Restricted
Funds
£
-		 Total
Funds
2025
£
994
994
464,347
4,277
96,608
17,581
16,000
16,561
5,556
18,977
18,574
158,342
548
34,877
35,000
887,248
32,519
600
1,604
919
353
622
567
5,815
3,386
1,000
294
1,527
49,206
10,882
4,781
15,663
952,117
953,111		 Total
Funds
2024
£
1,046
994 - - 1,046
464,347
4,277
12,662
-
16,000
16,561
5,556
18,977
18,574
158,342
348
-
-		 -
-
-
-
-
-
-
-
-
-
-
5,776
35,000		 -
-
83,946
17,581
-
-
-
-
-
-
200
29,101
-		 449,947
-
43,283
10,136
-
16,120
6,907
18,220
23,534
98,636
494
20,670
306
715,644 40,776 130,828 688,253
32,519
600
1,604
919
353
622
567
5,815
3,386
-
294
647		 -
-
-
-
-
-
-
-
-
-
-
-		 -
-
-
-
-
-
-
-
-
1,000
-
880		 31,927
600
1,604
525
150
1,876
-
7,164
4,229
500
233
840
47,326 - 1,880 49,648
10,882
4,781		 -
-		 -
-		 9,840
-
15,663 - - 9,840
778,633 40,776 132,708 747,741
779,627 40,776 132,708 748,787

Support costs have not been separately identified as the trustees consider that there is only one charitable activity. Therefore support costs relate wholly to that activity and have not been separately identified.

Page 23

Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing)

Notes to the Financial Statements for the year ended 31 December 2025

**7. ** Analysis of Expenditure (continued)
Note
Raising Funds
Freewill offering envelopes
Charitable Expenditure
Direct Costs
Staff costs
9
Home and foreign missions
Presbytery of N&A
Camp expenses
Conference expenses
General assembly (net cost)
Magazine
Donations and grants
8
Sabbath School prizes
Depreciation
Loss/(gain) on sale of assets
Total direct costs
Management and support costs
Staff costs
9
Rent
Insurance
Stationery
Postage
Printing and publications
Travel
Fees and subscriptions
Presentations
Bank fees
General charges
Total management and support costs
Governance
Auditors' remuneration
Total governance expenditure
Total charitable expenditure
Total expenditure		 Unrestricted
Funds
£
1,046		 Designated
Funds
£
-		 Restricted
Funds
£
-		 Funds
2024
£
1,046
1,046 - - 1,046
449,947
15,248
-
16,120
6,907
18,220
23,534
98,636
214
-
-		 -
-
-
-
-
-
-
-
-
10,981
306		 -
28,035
10,136
-
-
-
-
-
280
9,689
-		 449,947
43,283
10,136
16,120
6,907
18,220
23,534
98,636
494
20,670
306
628,826 11,287 48,140 688,253
31,927
600
1,604
525
150
1,876
7,164
4,229
500
233
840		 -
-
-
-
-
-
-
-
-
-
-		 -
-
-
-
-
-
-
-
-
-
-		 31,927
600
1,604
525
150
1,876
7,164
4,229
500
233
840
49,648 - - 49,648
9,840 - - 9,840
9,840 - - 9,840
688,314 11,287 48,140 747,741
689,360 11,287 48,140 748,787

Page 24

Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing)

Notes to the Financial Statements for the year ended 31 December 2025

8.
**9. **		 Analysis of Grants and Donations
Institutions
Donations
Christian Concern
Christian Institute
Hudson Taylor Ministries
International Mission to Jewish People
Edinburgh Free Church of Scotland (Continuing)
Inverness Free Church of Scotland (Continuing)
Grants
School in Theology
Knightswood Free Church of Scotland (Continuing)
Lewis Christian Education Association
Melville Knox Aberdeen
Melville Knox Glasgow
Melville Knox Highland
Inverness - Greyfriars Free Church of Scotland (Continuing)
Shettleston Free Church of Scotland (Continuing)
Harris Free Church of Scotland (Continung)
Kilmuir & Stenscholl Free Church of Scotland (Continuing)
North Uist & Grimsay Free Church of Scotland (Continuing)
Tarbat Free Church of Scotland (Continuing)
Total Donations & Grants to Institutions
Individuals
Donations
Rev Partheepan
Grants
Christian Education Grant (provided to 14 Individuals)
Home Education Grant (provided to 1 Individual)
Student grants
Joel Suarez
Alan Blaney
Kevin MacDonald
Fabien Garat
Comon Tome
Total Donations & Grants to Individuals
Total Donations & Grants
Analysis of Staff Costs
Salaries and wages
Social security costs
Pension costs
Ministers
Management and Administration
No employee had employee benefits in excess of £60,000 (2024: nil).		 Total
Funds
2025
£
500
1,000
240
1,000
-
90,000
92,740
1,500
-
-
129
-
-
-
10,000
1,200
10,680
4,365
10,000
37,874
130,614
1,120
1,120
1,871
-
1,871
4,175
5,400
11,040
2,412
1,710
24,737
27,728
158,342
Total
2025
£
412,828
34,498
49,540
496,866
Total
2025
Number
16
2
18		 Total
Funds
2024
£
500
1,000
200
1,000
50,421
-
53,121
1,500
5,865
250
250
250
250
10,000
-
-
-
-
-
18,365
71,486
-
-
-
200
200
8,350
9,600
9,000
-
-
26,950
27,150
98,636
Total
2024
£
405,619
27,581
48,674
481,874
Total
2024
Number
16
2
18

Page 25

Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing)

Notes to the Financial Statements for the year ended 31 December 2025

10. Auditor's Remuneration

The auditor’s remuneration paid to Innes and Partners Limited amounts to accountancy services of £1,512 (2024: £1,440) and audit fees of £9,180 (2024: £8,400).

11. Tangible Fixed Assets
Cost or valuation
As at 1 January 2025
Additions
Disposals
As at 31 December 2025
Depreciation
As at 1 January 2025
Charge for the year
Eliminated on Disposal
As at 31 December 2025
Net Book Value
As at 31 December 2024
As at 31 December 2025		 £
815,100
-
(250,000)
Freehold
property		 £
3,381
-
-
Fixtures &
fittings		 £
23,689
-
-
Motor vehicles		 £
5,910
-
-
5,910
4,935
475
-
5,410
975
500
Computer
equipment		 £
848,080
-
(250,000)
Total
565,100 3,381 23,689 598,080
238,868
32,032
(5,000)		 3,376
1
-		 11,055
2,369
-		 258,234
34,877
(5,000)
265,900 3,377 13,424 288,111
576,232 5 12,634 589,846
299,200 4 10,265 309,969

The following properties held by the charity at the year end were revalued as noted below:

7 Lindsay Street
2-4 Thornwood Terrace		 Valuation
15,000
250,000		 Date of Valuation
Valuer
24/10/2023 Trustees (note 1 below)
24/10/2023 Trustees (note 1 below)
265,000

Note 1 - 7 Lindsay Street and 2-4 Thornwood Terrace were valued by the Trustees, who sought professional advice from an expert in the field, Giles Arnold MRICS of Growth Church Trust.

The valuation at 24/10/2023 is deemed to be the value at the reporting date of 31/12/2025.

12. Stocks

12. Stocks
Stocks
13. Analysis of Debtors
Due within 1 year
Other debtors
Gift aid receivable
Loans
Debtors due after 1 year
Loans		 Unrestricted
Funds
£
18,763
50,669
3,311		 Designated
Funds
£
-
-
23,502		 Restricted
Funds
£
-
-
-		 Total
2025
£
1,852
1,852
Total
Funds
2025
£
18,763
50,669
26,813
96,245
Total
Funds
2025
£
102,689
102,689		 Total
2024
£
1,865
1,865
Total
Funds
2024
£
6,526
74,845
34,523
72,743 23,502 - 115,894
Unrestricted
Funds
£
2,814		 Designated
Funds
£
99,875		 Restricted
Funds
£
-		 Total
Funds
2024
£
145,781
2,814 99,875 - 145,781

Page 26

Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing)

Notes to the Financial Statements for the year ended 31 December 2025

14. Analysis of current labilities and long term creditors
Due within 1 year
Taxation and Social Security
Other Creditors
Accruals and deferred income
Deferred Income
Subscriptions received in advance
Total
15. Analysis of Net Assets Among Funds
Fixed Assets
Current Assets
Current Liabilities
Net Assets as at 31 December 2025
Fixed Assets
Current Assets
Current Liabilities
Net Assets as at 31 December 2024		 Unrestricted
Funds
£
9,302
4,339
11,564		 Designated
Funds
£
-
-
-		 Restricted
Funds
£
-
-
-		 Total
Funds
2025
£
9,302
4,339
11,564
25,205
Balance at
31.12.25
£
312
312
Restricted
Funds
£
10,265
81,768
-
92,033
Restricted
Funds
£
12,634
45,783
-
58,417		 Total
Funds
2024
£
7,499
4,087
12,291
25,205 - - 23,877
Balance at
01.01.25
£
344		 Received
in year
£
312		 Released
in year
£
(344)		 For release:
within 1 Year
£
312
344 312 (344) 312
Unrestricted
Funds
£
-
1,215,825
(25,205)		 Designated
Funds
£
299,704
154,372
-		 Total
Funds
2025
£
309,969
1,451,965
(25,205)
1,190,620 454,076 1,736,729
Unrestricted
Funds
£
-
755,015
(23,877)		 Designated
Funds
£
577,212
194,129
-		 Total
Funds
2024
£
589,846
994,927
(23,877)
731,138 771,341 1,560,896

Page 27

Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing)

Notes to the Financial Statements for the year ended 31 December 2025

**16. ** Movement in Funds
Restricted Funds
Central Building Fund
Sabbath School Prize Fund
Zambia Missions Fund
Gospel Fund
Children's Biblical Knowledge Prize Fund
Sri Lanka Mission
Sri Lanka Car Fund
Sri Lanka Children's work (Karis Care)
Sri Lanka, Hatton Outreach
Sri Lanka, Solar Panels/Air Conditioning
Sri Lanka, Selvanager pre-school
Sri Lanka, Cyclone Appeal
Sri Lanka, Kilinochchi Building Fund
Margaret Macleod Memorial Prize
Spanish Work
French Work
Portuguese Work
Presbytery of Navarre & Aragon
Seminary Lecture presentation
Unrestricted Funds
General
Designated Funds
Building
Death in Service Fund
Other Assets
Total Designated Funds
Total Funds		 As at
01/01/2025
£
22,038
576
2,123
15,959
-
-
12,634
-
-
1,000
-
-
-
4,087
-
-
-
-
-		 Incoming
Resources
£
28,722
5
3
443
28,573
15,503
-
3,075
200
3,000
2,084
4,480
26,000
32
20
372
25,000
15,767
1,000		 Outgoing
Resources
£
(26,732)
(200)
(996)
(780)
-
(23,735)
(2,369)
(1,920)
(200)
(1,000)
(3,783)
(920)
(26,000)
(100)
(20)
(372)
(25,000)
(17,581)
(1,000)		 Transfers
£
-
-
-
-
-
8,232
-
-
-
-
1,699
-
-
-
-
-
-
2,114
-
12,045
264,667
(281,887)
5,175
-
(276,712)
(12,045)
-		 As at
31/12/2025
£
24,028
381
1,130
15,622
28,573
-
10,265
1,155
-
3,000
-
3,560
-
4,019
-
-
-
300
-
58,417 154,279 (132,708) 92,033
731,138
744,763
25,597
981		 974,442
-
223
-		 (779,627)
(40,300)
-
(476)		 1,190,620
422,576
30,995
505
771,341 223 (40,776) 454,076
1,502,479 974,665 (820,403) 1,644,696
1,560,896 1,128,944 (953,111) 1,736,729

Page 28

Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing)

Notes to the Financial Statements for the year ended 31 December 2025

**16. ** Movement in Funds (continued)
Restricted Funds
Central Building Fund
Sabbath School Prize Fund
Zambia Missions Fund
Gospel Fund
Sri Lanka Mission
Sri Lanka Car Fund
Sri Lanka Children's work (Karis Care)
Sri Lanka, Hatton Outreach
Sri Lanka, Solar Panels/Air Conditioning
Sri Lanka, Pre-school Building, Vavuniya
Margaret Macleod Memorial Prize
Spanish Work
French Work
Presbytery of Navarre & Aragon
Unrestricted Funds
General
Designated Funds
Building
Death in Service Fund
Other Assets
Total Designated Funds
Total Funds		 As at
01/01/2024
£
20,084
847
3,119
14,023
352
15,003
1,070
-
-
-
4,039
335
-
955		 Incoming
Resources
£
9,274
9
-
1,936
12,203
-
892
1,800
1,000
1,000
48
230
5,775
9,181		 Outgoing
Resources
£
(7,320)
(280)
(996)
-
(15,187)
(2,369)
(2,712)
(1,800)
-
(1,000)
-
(565)
(5,775)
(10,136)		 Transfers
£
-
-
-
-
2,632
-
750
-
-
-
-
-
-
-
3,382
8,964
(16,135)
3,190
599
(12,346)
(3,382)
-		 As at
31/12/2024
£
22,038
576
2,123
15,959
-
12,634
-
-
1,000
-
4,087
-
-
-
59,827 43,348 (48,140) 58,417
603,793
771,198
22,122
1,369		 807,741
-
285
-		 (689,360)
(10,300)
-
(987)		 731,138
744,763
25,597
981
794,689 285 (11,287) 771,341
1,398,482 808,026 (700,647) 1,502,479
1,458,309 851,374 (748,787) 1,560,896

Fund Purposes:

Restricted Funds:

Central Building Fund - represents funds collected from congregations. These funds can only be used for the purchase of buildings (although more favourably towards the purchase of manses).

Sabbath School Prize Fund - represents the balance of two donations of £1,000 for the Maurine Murchison Memorial Fund.

Margaret Macleod Memorial Prize Fund - was previously included within the Seminary Fund, this has now been set up as a distinct fund which relates to a legacy of £4,000 which awards the interest each year to the best student.

Zambia Missions Fund - has been collected from congregations for the work in Zambia. These funds can only be used in projects associated with Zambia.

Gospel Fund - was set up in 2015 and is restricted to the expenditure associated with 'Home Missions' work.

Children's Biblical Knowledge Prize Fund - This fund was set up in 2025 as a result of a legacy of £28,566 received from the late Dr Murdoch Murchison.

Sri Lanka Mission - was set up historically by an £18,000 legacy left for missions work. The General Assembly used these funds to fund the work in Sri Lanka for three years. The legacy has now been exhausted. The fund is now made up by ongoing contributions made specifically for the work in Sri Lanka and the costs associated with the ongoing work in that land.

Sri Lanka Car Fund - (set up in 2017) was for the purpose of purchasing a motor vehicle in Sri Lanka. A vehicle was purchased in 2020 with the balance of the funds being used to help with the ongoing running costs of the vehicle. These funds have now been used and the closing balance now represents the written down net book value of the vehicle.

Sri Lanka children's work (Karis Care) - these funds can only be used in support of the work amongst the disabled children in Sri Lanka. Sri Lanka, Hatton Outreach - these funds can only be used in support of the Hatton outreach work.

Sri Lanka, Solar Panels - a donation of £1,000 was received in 2024 to assist in the installation of either air-conditoning in the manse guest room or to install solar panels. The H&FMC agreed that the installation of the solar panels was the better use of such funds. The estimated cost of solar panels for the church and manse would be approximately £3,000. It was agreed to hold the donation until sufficient funds are available to complete the work.

Sri Lanka, Pre-school Building, Vavuniya - these funds are for assisting in the purchase of a second building for the pre-school work near Vavuniya.

Sri Lanka, Selvanagar Pre-School - this fund, often supported by Explorer magazine appeals, is for the development of facilities, particularly the playground area.

Page 29

Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing)

Notes to the Financial Statements for the year ended 31 December 2025

16. Movement in Funds (continued) Fund Purposes:

Restricted Funds:

Sri Lanka, Cyclone appeal - this fund was set up in December 2025 to provide emergency relief for families suffering following the December 2025 cyclone in Sri Lanka.

Sri Lanka, Kilinochchi Building Fund - this fund was set up in 2025 for the purchase and renovation of a church building and surrounding grounds.

Spanish Work - these funds can only be used in support of the work in Spain.

French Work - these funds can only be used in support of the work in France.

Portuguese Work - these funds can only be used in support of the work in Portugal.

Presbytery of Navarre and Aragon - these funds can only be used in support of the work in the Presbytery of Navarre & Aragon.

Seminary Lecture presentation - these funds were collected in respect of a presenation made to Rev. HJT Woods upon his retiral from the seminary.

Unrestricted Funds:

General Fund - represents unrestricted funds which the trustees are free to use in accordance with the charitable objects.

Designated Funds:

Building fund - represents funding designated by the trustees for building purposes.

Death In Service Fund - The General Assembly agreed that a fund should be built up over three years to contain an amount that is at least the Equal Dividend plus corresponding employers NIC costs.

Other Assets Fund - represents the Net Book Value of other assets held by the church.

17. Fund Transfers

Funds of £8,232, £1,699 and £2,114 have been transferred from General Funds to the Sri Lanka Mission Fund, the Sri Lanka Selvanager pre-school work and the Presbytery of Navarre and Aragon in order to finance the expenditure in the year.

Funds of £281,887 have been transferred from the Buildings Fund to the General Fund which represents the movement in the congregational loan balances/NBV of buildings.

Funds of £5,175 have been transferred from the general fund to the Death In Service Fund to make the fund balance around the level of the Equal Stipend plus corresponding employers NIC costs.

18. Analysis of changes in net debt

Cash at Bank and in Hand
Cash held on Deposit
Total net debt		 Total
2024
£
350,953
380,434		 Cash flows
£
(47,673)
567,465
519,792		 Total
2025
£
303,280
947,899
731,387 1,251,179

19. FRC Ethical Standard - Provisions available for small entities

In common with many other organisations of our size and nature we use our auditors to assist with the preparation of the financial statements.

Page 30

Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing)

Detailed Statement of Financial Activities for the year ended 31 December 2025

INCOME
Donations and Legacies
Congregations
Donations
Legacies
Seminary books and fees
Other income
Charitable Activities
Magazine subscriptions
Publications and CDs
Stock movement
Camp income
Conference income
Rental income
Investments
Deposit interest
Car loan interest
Total Incoming resources		 Unrestricted
Funds
£
683,244
21,584
206,667
1,842
2,053		 Designated
Funds
£
-
-
-
-
-		 Restricted
Funds
£
-
124,521
28,566
-
1,000		 Total
Funds
2025
£
683,244
146,105
235,233
1,842
3,053
1,069,477
17,726
403
(13)
9,013
3,568
5,390
36,087
23,157
223
23,380
1,128,944		 Total
Funds
2024
£
701,231
51,790
51,421
35
-
915,390 - 154,087 804,477
17,726
403
(13)
9,013
3,568
5,390		 -
-
-
-
-
-		 -
-
-
-
-
-		 15,494
2,006
(4)
8,535
3,846
-
36,087 - - 29,877
22,742
223		 223
-		 192
-		 16,794
226
22,965 223 192 17,020
974,442 223 154,279 851,374

This page does not form part of the statutory financial statements

Page 31

Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing)

Detailed Statement of Financial Activities for the year ended 31 December 2025

EXPENDITURE
Raising Funds
Freewill offering envelopes
Charitable Expenditure
Direct costs
Staff costs
Supply Cost
Home and foreign missions
Presbytery of N&A
Denominational support to Presbytery of N&A
Camp expenses
Conference expenses
General assembly (net cost)
Magazine
Donations and grants
Sabbath School prizes
Depreciation
Loss/(gain) on sale of assets
Total direct costs
Management and support costs
Staff costs
Rent
Insurance
Stationery
Postage
Printing and publications
Materials for seminary lectures
Travel
Fees and subscriptions
Presentations
Bank fees
General charges
Total management and support costs
Governance
Auditors' remuneration
Legal fees
Total governance expenditure
Total expenditure
Net income/(expenditure)		 Unrestricted
Funds
£
994		 Designated
Funds
£
-		 Restricted
Funds
£
-		 Total
Funds
2025
£
994
994
Total
Funds
2025
£
464,347
4,277
96,608
17,581
16,000
16,561
5,556
18,977
18,574
158,342
548
34,877
35,000
887,248
32,519
600
1,604
919
353
622
567
5,815
3,386
1,000
294
1,527
49,206
10,882
4,781
15,663
953,111
175,833		 Total
Funds
2024
£
1,046
994 - - 1,046
Unrestricted
Funds
£
464,347
4,277
12,662
-
16,000
16,561
5,556
18,977
18,574
158,342
348
-
-		 Designated
Funds
£
-
-
-
-
-
-
-
-
-
-
-
5,776
35,000		 Restricted
Funds
£
-
-
83,946
17,581
-
-
-
-
-
-
200
29,101
-		 Total
Funds
2024
£
449,947
-
43,283
10,136
-
16,120
6,907
18,220
23,534
98,636
494
20,670
306
715,644 40,776 130,828 688,253
32,519
600
1,604
919
353
622
567
5,815
3,386
-
294
647		 -
-
-
-
-
-
-
-
-
-
-
-		 -
-
-
-
-
-
-
-
-
1,000
-
880		 31,927
600
1,604
525
150
1,876
-
7,164
4,229
500
233
840
47,326 - 1,880 49,648
10,882
4,781		 -
-		 -
-		 9,840
-
15,663 - - 9,840
779,627 40,776 132,708 748,787
194,815 (40,553) 21,571 102,587

This page does not form part of the statutory financial statements

Page 32

Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing)

Detailed Statement of Financial Activities for the year ended 31 December 2024

INCOME
Donations and Legacies
Congregations
Donations
Legacies
Seminary books and fees
Charitable Activities
Magazine subscriptions
Publications and CDs
Stock movement
Camp income
Conference income
Investments
Deposit interest
Car loan interest
Total Incoming resources		 Unrestricted
Funds
£
701,231
9,682
50,421
35		 Designated
Funds
£
-
-
-
-		 Restricted
Funds
£
-
42,108
1,000
-		 Total
Funds
2024
£
701,231
51,790
51,421
35
761,369 - 43,108 804,477
15,494
2,006
(4)
8,535
3,846		 -
-
-
-
-		 -
-
-
-
-		 15,494
2,006
(4)
8,535
3,846
29,877 - - 29,877
16,269
226		 285
-		 240
-		 16,794
226
16,495 285 240 17,020
807,741 285 43,348 851,374

This page does not form part of the statutory financial statements

Page 33

Docusign Envelope ID: BD0C8A6D-1928-4DAA-8E3A-9B3E4B4850B5

Free Church of Scotland (Continuing)

Detailed Statement of Financial Activities for the year ended 31 December 2024

EXPENDITURE
Raising Funds
Freewill offering envelopes
Charitable Expenditure
Direct costs
Staff costs
Home and foreign missions
Presbytery of N&A
Camp expenses
Conference expenses
General assembly (net cost)
Magazine
Donations and grants
Sabbath School prizes
Depreciation
Loss/(gain) on sale of assets
Total direct costs
Management and support costs
Staff costs
Rent
Insurance
Stationery
Postage
Printing and publications
Travel
Fees and subscriptions
Presentations
Bank fees
General charges
Total management and support costs
Governance
Auditors' remuneration
Total governance expenditure
Total expenditure
Net income/(expenditure)		 Unrestricted
Funds
£
1,046		 Designated
Funds
£
-		 Restricted
Funds
£
-		 Total
Funds
2024
£
1,046
1,046 - - 1,046
Unrestricted
Funds
£
449,947
15,248
-
16,120
6,907
18,220
23,534
98,636
214
-
-		 Designated
Funds
£
-
-
-
-
-
-
-
-
-
10,981
306		 Restricted
Funds
£
-
28,035
10,136
-
-
-
-
-
280
9,689
-		 Total
Funds
2024
£
449,947
43,283
10,136
16,120
6,907
18,220
23,534
98,636
494
20,670
306
628,826 11,287 48,140 688,253
31,927
600
1,604
525
150
1,876
7,164
4,229
500
233
840		 -
-
-
-
-
-
-
-
-
-
-		 -
-
-
-
-
-
-
-
-
-
-		 31,927
600
1,604
525
150
1,876
7,164
4,229
500
233
840
49,648 - - 49,648
9,840 - - 9,840
9,840 - - 9,840
689,360 11,287 48,140 748,787
118,381 (11,002) (4,792) 102,587

This page does not form part of the statutory financial statements

Page 34