Charity Registration No. SC039655 {Scotlandl THE CITY OF EDINBURGH METHODIST CHURCH ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024
THE CITY OF EDINBURGH METHODIST CHURCH LEGAL AND ADMINISTRATIVE INFORMATION Church Councll Members Charity number Iscotlandl SC039655 Registered office 25 Nicolson Square Edinburgh EH8 9BX Independent examiner Johnston Smillie Ltd 5 South Gyle Crescent Lane Edinburgh EH12 9EG Custodian Trustees Trustees for Methodist Church Purposes Central Buildings Oldham Street Manchester M1 1JQ
THE CITY OF EDINBURGH METHODIST CHURCH CONTENTS Page Trustees port Independent examiner's report Slalemenl of financial activities 10- 11 Balance sheet 12 Notes to the financial statements 13-28
THE CITY OF EDINBURGH METHODIST CHURCH TRUSTEES REPORT FOR THE YEAR ENDED 31 AUGUST 2024 The Chur¢h Council Members present their annual report and financial stslemenls for the year ended 31 August 2024. The financial slalements have been prepared in accordance with the accounting poliaes sel out in note 1 to the financial statements and comply with the Church's constitution, the Charities and Trustee Investment (Scollandl Act 2005, the Charities Accounts Iscollandl Regulations 2006 las amended) and "Accounting and Reporb"ng by Charities.. Slalemenl of Recommended Practi applicable to charities preparing their accounts in accordance wth the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102}" (effective 1 January 20191. Objectives and activities The vision of the City of Edinburgh Melhodisl Church ICEMCI is lo be an inclusive community in the heart of the city where we share God's love through working with and foi others, lo transform our community and the wodd. The mission priorities agreed by the Church Council are consislenl with the four aims of the Methodist Church in Great Britain". worship, learning and caring, service, evangelism. Activities CEMC conducts a wide range of activities in a number of areas, including 25 Nicolson Square, and other locations across the City and wider area. A number of ad'vities are also based in the digital sphere. 1. Worshlp We share in worship, prayer and fellowship. This involved Sunday Morning, Wednesday evening services. and Wednesdays at 'The Well,. These have been supported by a team of volunteers dealing with technical tters, and worship leaders. 2. Learning and Caring CEMC has several small groups, that meet lo deepen Christian discipleship., these include a number of house and small groups, meeting on site and online. We have a system of pastoral care, undertaken by volunteer pastoral visitors alongside the church ministers. A church group organise and distribute flowers on a weekly basis as part of the pastoral care exercised by CEMC. 3. Service CEMC provides practical, financial, volunteer, and administrative support lo a variety of organisalions (including YMCA Edinburgh SCIO, Courts LNstening Service, Bethany Christian Trust, Chnstian Aid and Soul Food, among olhersl. We ale a 'Festival Fringe Venue,, now facililaling this within Nicolson Square Venues. We also support and are part of Edinburgh Churches Together, Newington Ghurches Together and the Edinbuoh Inlerf&ith Associalion. We are part of the Methodist Heritage movement.
THE CITY OF EDINBURGH METHODIST CHURCH TRUSTEES REPORT (CONTINUED FOR THE YEAR ENDED 31 AUGUST 2024 Achievements and perfomance General chUh Work W0h1P Through the year we have worked around the Main Sunday Service, to maintain the high quality and authentically Methodist, including the online offering. This has included the ongoing work of the volunteer technical team to maintain the online presence and access to worship. The Wednesday Worship service Dnline continues to be supported well, wth a regular attendance of beeen 10 and 20, and a number of different leaders. This is a positive contribution lo the grc)wing and maintaining Df the faith of the congregation. Church wide prayer life has continues, with prayer groups meeting daily on weekdays. Learning & Caiing Pastoral carelpasloral neOrk (both formal through pastoral carers and informall, care and attent'on, loving concern continues within the congregation. A number of small groups have continued lo meet, some based on geographic areas, some short-term Bible studies, and others been groups with a common interest. These all offer an opportunity for people to explore faith aside from worship, building up people both inside and outside church in faith and discipleship. Provision for children and young people has continues, supported by the Children and young people team. Some young people from CEMC also attended 3Generate (The Methodist Youth Assembly) &8 October 2023. Servlce We continue lo work with local university chaplaincies and our Young Adults group continues to meet monthly. CEMC has continued lo work with and support wider work across Edinburgh and the region, including the ongoing work with YMCA Edinburgh, support for Bethany Christian Trust and the Courts Listening servi in use of the building. We also continue our partnership with Edinburgh City Mission lo proinde the Soul Food meal on a Monday evening. Evangelism Vve have continued lo develop the welcome offered by both the congregation and the building, this has included improving our publicity and signage. We have linked with the Methodist Church's Connexional Evangelism and Growth Strategy, esperyally around how the Methodist Church has a presence at the festivals in Edinburgh. This has seen a worf(ing party from the wider Methodist Church and including members drawn from CEMC putting on Lost in Wonder. as a Fringe show. Dlscusslons wlth Central Hall Westmlnster Ltd The relationship with CHW Ltd changed over the year, with support being offered for the establishment of a trading subsidiary of CEMC to oversee the provision of conference and meeting space in the buildings al Nicolson Square, and also the support of the maintenance and running of the buildings and others which CEMC has care of. This work continued over the year and there is now a different nature lo the partnershp wth CHW Ltd.
THE CITY OF EDINBURGH METHODIST CHURCH TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Flnanclal rwlow Nel ine£)ming resources before Ir8nsfers and Tevalualions tolalled £23,839 12023= Nel outgoing resources £360,817). Totsl incoming resources were £422,735 {2023.' £455.8691. Total resources expended came to £398,89612023.' £816,686). Charltable Income The main sources of charitable income in 2023r24 were collections and d)nations, grant income. investment income and room hire. Investment income was £11.918 higher than in 2022123. This is a resuk of there being a larger write off of irrecoveratle debts due from a tenant in the prior year. There was also slight increase in nI. Al £43.317 Income from room hire was £683 k)wer than in the previous year. Even though an organisation 18 hlrlro addits.onal space for storage, there was a small wrrte off from the prior year causing the overall decrease. Charitable expenditu The largest items of expendrture were propety-relaled Costs, the CEMC'S contribution to the Forth Valley Circuit, and management charges. Employment costs accounted for a lion's share of the rest. The large decreased cost of donats'ons in the year is a result of the sale proceeds of 1 Junctson Place, Edinburgh being transferred to the Scotland Distiict in 2022123. Assets and Llabllltles In order to ease a deterioratsng cash balan¢9, we will draw on our financial investments in the ccyning yoar. This will enable us to aggressivety address roc¥m18tting and other sourc&s of income. Re8eThes Reasons for relalnlng free reseNes: Free reserNes a unspent lunds for which no particular purpose has ken identified for the lime being. This is in addition to money prudenljy sel aside for known future expendtture {designaled funds). The managing trustees have identified the follmng main reasons for holding free reserves. 1. As prudent provision for unknown future expenditure e.g. unexpected deterioration of some part of the buildings. The trustees note, in this regard, the age and, in the case of the premises at Nicolson &]uare, A-listsd slalus of the buildings. 2. As prudent prowsion against unexpected loss Dr reduction of income e.g. unexpected loss of income from lessees. The trustees note, in this regard, the Church's obligations lo emrAoyees. 3. As a strategic finanaal resource to'pumpprime. new inf(ialives in fulfilment of the church's mi8son.
THE CITY OF EDINBURGH METHODIST CHURCH TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Re$•r4T•$ (contlnuod) The level of free reserves deemed appropriate by the managing Iru$lee$ wll vary from year lo year. The Churc Finance and Development Group is responsible for recommending a specific figure to the Church Councl annually. This figure is recorded in the minutes of the appropriate Church Counal meeting. The current approved policy is to target a level of free reserve5 of £141.000. This 18 made up of the foll¢)wing elemenls'.- Contlngency Uninsured propety repairs Retail unf(s vacant Increase in CircuitA5ses5ment Staff redundancies Basls of calculatlon Syo book value, inflatiowdjusted 2 unrts Vant for 12 months 10% increase R•serv•g1£) 100,000 25,000 14,000 2.000 The actual amount of unrestricted reserves held as al 31 August 2024 was £20,350 12023.. £124,688). This is below the desired level of free reserves, primarily due lo a large one off donation in the prior ye. and additional costs such as management charges, and higher property expenditure this year. This approach recognises the fact that CEMC'S positive balan of restricted fijnds is held in assets that are erther illiquid or produung income that is currently required lo support annual expenditure. Rgstilctsd funds Restricted funds amounted lo £2.531,850 12023.. £2,403,422) at the balance sheet date. Of this, £1,595,385 consist5 of land, building5 and equipment utilised by CEMC and ils assrtiated charities. The balance consists largely of investment properties together wrth other investments, less loans and other liabilities. Alaintenance of Reseffts Finance, Devebpment and Property Group are respon%ble for monitoring and maintaining the level of reseNe8. Infomation on these activltles Is induded In regular reports to the managlng trustee& Pollcy R•vlew The Finance. Development 8nd Property Group rewews the Reserves Policy, annu81ty. Changes to the policy require the approval of the managing trustees. No change lo this has been recommended since March 2023. Investrnnt Poll¢y Funds not immediately required. including bequests and other funds held in trust by The Trustees for Methodist Church Purposes. are invested through the Melhodisl Church's in-hoLbse investmerbt manager. the Central Finan Board ICF8} of the Melhodisl Church. Rlsk Managemgnt The trustees have reviewed the major risks lo lch the charity is exposed and put in place systems to mitigate Ihosg risks. The area$ of risk ¢on$idorgd to bo mo$1 signfficant and rr8$pOnding action lo manago them ara as follows.. Risk Mitigation Unexpeded propety repairs.. A 'Quinquennial' Building Condition Report 1$ commi$$ioned every years from a qualified survwor and recommendations followed. An annual nal roof inspection is undertaken Unexpeded bss of income from investment properties.. Risk factored into free reserves policy. Risk spread betsveen three properties.
THE CITY OF EDINBURGH METHODIST CHURCH TRUSTEES REPORT (CONTINUED FOR THE YEAR ENDED 31 AUGUST 2024 Future Plans As outlined in the CEMC'S mission plan the priorities for the coming year are.. Worshlp Main Sunday Service, to maintsin the high quality and authentically Methodist, including the online offering. Wednesday Worship Develop further worship opportunities Church wide prayer life Leaming & Caring Pastoral Carelpasloral nerk Iboth formal through pastoral carers and informall, care and attention, loving wncern Establishing and maintaining small groups. offering opportunity for people to explore faith aside from worship. building up people both inside and outside church in faith and discipleship Holding meetings in the most appropriate way (Face lo face, online or a combination). Continue our work with children and young people Establish Church-life committee to encourage the developing life of the church Sgrvice Engage with University.. Student Group I Chaplaincy work Work out which community. we can serve Support of speafic non-CEMC forms of service, which are seen as good and important.. e.g. YMCA, The Listening Servi, Soul Food. Engage with issue of social justice as a congregation, and helping individuals do so Evangelism Develop the welcome Better publicity and signage Chris118n engagement courses Linking with the Connexional God forAII Strategy Support Develop refreshed Mission Plan Staff Support Establlshment of Nlcolson Square Venues Llml¢ed Over the end of 2023-24 and into 2024-25 financial year, work has been undenhfay lo establish Nicolson Square Venues Limited (Company number SC8283371 as a trading company of CEMC, this was achieved in November 2024, and the relationship continues to develop. The Trustees acknowledge there is uncertainly about the future, however CEMC continues to fulfil its charitsble objedives.
THE CITY OF EDINBURGH METHODIST CHURCH TRUSTEES REPORT (CONTINUED FOR THE YEAR ENDED 31 AUGUST 2024 Structure, governance and management The governing do¢umenl for the Melhodisl Church in Great Britsin is"The Conslitulional Practice and Discipline of the Methodist Church" (latest revision 20231. Section 6 deals with the governance of local churches Charity Constitution All members of the Church are entitled to vote at the General Church Meeting which is convened at least annually. In addition to mutual counsel as to the condition of the Church, the function of the meeting is lo elect church stewards and representatives to the Church Council. For the year 1 sl September 2023 to 31 stAugust 2024, membership of the Church Council consists of.. The Ministers Church Stewards (elected by General Church Meelingl Treasurer lappoinled by council) The Secretary of the Pastoral Committee lappoinled by the counall The Secretary of the council (appointed by the council) Between six and fifteen representatives elected by the General Church Meeting Up lo fifteen additional persons appointed by the council lo ensure adequate representstion from all areas of the church's life One circuit steward appointed by the arcuil stewards. The Members who served durin the ear and up to the date of si nature of the financial statements were..
THE CITY OF EDINBURGH METHODIST CHURCH TRUSTEES REPORT (CONTINUED FOR THE YEAR ENDED 31 AUGUST 2024 Trustee Reernitment and Training Ministers with pastoral oversight are Trustees by virtue of their appointment. The Circuit stewards appoint one of their number as a Trustee. Other Trustee vacancies come from within the church membership, eitherthrough direct election, appointment lo an office or co-option. Of these, the General Church Meeting ele¢ls congregational representatives lo Church Council as well as Church Stewards who serve on the Leadership Team. The Church Council elects ils own Secretsry, the Secretary of the Pastoral Committee and the Treasurer, and c&opled those il wishes to represent specific parts of the life of the church. The Constitutional Practice and Discipline of the Methodist Chur¢h sets out the responsibilities of Methodist trustees and office bearers. Further guidan¢e is available from the website of the Methodist Church. Training in the responsibilities of trustees and developments in charity regulation is provided by the Methodist Church's Leaming Network Staff and Volunteers Over the year the paid stsff of CEMC included the Director of Music and Organist, and the Church Administrator. The subslanlial contribution made by volunteers to the life and activities of the church includes the following areas.. All Trustees, other than the Ministers, are volunteers. Stewards and other office bearers. Local Preachers and Worship Leaders. Pastoral Visitors. Leadership of small groups. Those involved in work with young people and safeguarding. Other contributions to worship services.. choir, welcomers, communion stewards, tealcoffee, arrangement and distribution of flowers. Members of the Finance, Development and Propety Group. Board members of YMCA Edinburgh and volunteer support for YMCA activities. Fundraising and awareness raising in the church on behalf of other charities e.g. Annual Church Project. Maintaining links wth the wider Melhodisl Connexion. Ecumenical and inter-faith work.
THE CITY OF EDINBURGH METHODIST CHURCH TRUSTEES REPORT (CONTINUED FOR THE YEAR ENDED 31 AUGUST 2024 Organisational Stmeture The City of Edinburgh Melhodisl Church is registered as a charity in Scotland Ino. SC0396551. The church is part of the Forth Valley Cir¢uil131131 (Charity Registration No. SC0379501, which in turn is part of the Synod of the Melhodisl Church in Scotland (Charity Registration No. SC0380981 of the Melhodisl Church in Great Britain Icharty number." 11322081. The Church Council, in a ¢onsullalion initiated by the Melhodisl Church in Scotland gave il's support lo the uniting of the six ¢ircuils in Scotland, this was agreed by the Melhodisl conferen in July 2024, and will come into effect on the 1 sl of September 2025. with the Forth Valley Circuit131131 uniting into the Scotland Circuit. The Church Council members are the TrLJStees of the charity and Managing Trustees of the propety and Model Trust monies (the Custodian Trustees for the propety and Model Trust monies are the Trustees for Methodist Church Purposes- Registered Charity No. 1136358, a body corporate established by the Melhodisl Church Act 19391. The Church Council meets al least four times each year. 11 is responsible for achieving CEMC'S mission, and for the appointment of office bearers and committees lo enact the agreed strategies. CEMC has close constitutional and operational ties with one further charity.. YMCA Edinbuwh SCIO (Charity Registration No. SC048494) woths with young people and families in Edinburgh. CEMC have the right to appoint four ofthe board member5 for YMCA Edinburgh, however this relationship is currently under review, and CEMC have agreed that the right to appoint board members is no Iongerrequld following the changing relationship with the sale of the property at 1 Junction Place. Objectives of CEMC'S mission priorities are.. To provide a range of quality worship services which draw as many as possible doser to God. To nurture faith development In all at whatever stage of their faith journey. 1. To seek actively through prayer, pastoral care and other spiritual disciplines, lo allow the kingdom of God lo grow amongst us such that we all become active partners in the mission of the church both as individuals and as a faith community. 2. To follow the example of Christ In caring for and championing the needs of the most vulnerable with an emphasis on working with partners and developing clear mission priorities for the use of our buildings.
THE CITY OF EDINBURGH METHODIST CHURCH INDEPENDENT EXAMINER'S REPORT TO THE CHURCH COUNCIL MEMBERS OF THE CITY OF EDINBURGH METHODIST CHURCH I report on the finanaal statements of the Church for the year ended 31 August 2024, which are set out on pages 10t028. Rospectlvo rnsponslbllltles of Church Councll Momr8 and gxamln•r The Churth'3 Chur¢h Council Members are responsible for the preparation of the financial stslemenls in accordance with the terns of the Charities and Trustee Investments (Scotlandl Act 2005 and the Charrbes Accounts Iscotland) Regulations 2006. The charity's Church Counal Membèrs consider that the audit requirement of Regulation 1011llal to Ic) of the 2006 Accounts Regulations does not appty. It is my responsibility lo examine the financial statements as required under Seetion 4411 Ilcl of thè Aet and to slate whether partieular matters have come to my attention. Basis of independent exarninerfs ststement My examination is carried out in accordance with Regulatlon 11 of the Chaiities Accounts (Scotland) Regulations 2006. An examination includes a review of the accounb'ng CordS kept by the charity and a comparison of the finanaal slalements presented wth those records. It also includes consideration of any unusual rtems or disclosures in the financial ststemenls, and seeking explanations from the Iruslees con¢eming any such matters. The procedures undertaken do not provide all the evidence that woukl be required in an audit and consequenlly I do not express an audit opinion on the view given by the financial statements. Independent examlnerfs ststement In connection with my examination. no matter has come to my attenllon.. lal which gives me reasonablg c8USe to believe that in any material respect the requirements.. lil to keep accounting records in aCcOrdae with section 44111 (al of the 2005 Ad and Regulation 4 cl the 20C6 Account$ Regulations,. and lil) to prepare financial statements which accord wth the accounting reeLJrds and compty wlh Regulation 8 of the 20C6 Accounts Regulations., have not been met or Ibl to which, in my opinion, attention should be drawn in order to enable a proper undorstanding of I financial slalemenls lo bg reache(l. Relevant Professional Body.. The Institute of Chartered Accounlanls in England and Wales Jthnston Smillie Ltd 5 South GOe Cre8cent Lan8 Edinburgh EH12 9EG Dated.. 27.05.2025
THE CITY OF EDINBURGH METHODIST CHURCH STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2024 Current financial year Unrestrlctgd Restrlctgd Endowment funds funds funds 2024 2024 2024 Totsl Totsl 2024 2023 Notes Income and endowm Donations and legacies Other trading activities Investments other income fr 104,178 43,317 73,195 201,901 306,079 43,317 73,339 175,146 45,441 60.424 174,858 Total Income and endowments 220,690 201,901 422,735 455,869 Raising funds 42 16 58 167 Charitable activities 325,365 73,473 398,838 816,519 Total resources expended 325,407 73,473 16 398,896 816,686 Net gainslllossesl on investments 13 379 278 657 13771 Net movement in funds 1104,3381 128,428 406 24,496 1361,1941 Fund balances al 1 September 2023 124,688 2,403.422 6,599 2,534,709 2,895,903 Fund balances at 31 August 2024 20,350 2,531,850 7,005 2,559,205 2,534,709 The slalemenl of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. 10-
THE CITY OF EDINBURGH METHODIST CHURCH STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Prior financial year Unrostrlctgd Restrlcled Endowment funds funds funds 2023 2023 2023 Total 2023 Notes Income and endowm Donations and legacies Other trading activities Investments other income fr 126,956 45,441 60,245 48,190 175,146 45,441 60.424 174,858 179 174,858 Total Income and endowments 232,642 223,048 179 455,869 Raising funds 150 17 167 Charitable activities 321,855 494,664 816,519 Total resources expended 322,005 494,664 17 816,686 Net gainslllossesl on investments 13 12181 11591 13771 Gross transfers between ftjnds Net movement in funds 14.529) 4,529 194,110} 1267,0871 1361,1941 Fund balances al 1 September 2022 218.798 2,670,509 6,596 2,895,903 Fund balances at 31 August 2023 124,688 2,403,422 6,599 2,534,709 The slalemenl of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing aclivilies.
THE CITY OF EDINBURGH METHODIST CHURCH BALANCE SHEET ASAT31 AUGUST2024 2024 2023 Not&s Fixed assets Tangible assets Investment propety Investments 14 15 16 1,595,385 485,000 306,644 1,599,355 485,000 305.987 2,387,029 2,390,342 Current assets Debtors Cash al bank and in hand 17 28,998 212,458 34,402 184,637 241,456 219,039 Creditors- amounts falling due within one year 18 157,5241 162,9161 Net currgnt a$s91$ 183,932 156.123 Total assets less current Ilabllltles 2,570,961 2,546,465 Creditors- amounts falling due after more than one year 19 {11,7561 111,7561 Nat assets 2,559,205 2,534.709 The funds of tha Church Endowment funds Restricted income funtls Unreslricled funds 21 22 7,005 2,531,850 20,350 6,599 2,403,422 124,688 2,559,205 2,534,709 12-
THE CITY OF EDINBURGH METHODIST CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Accounting policies Charity information The City of Edinburgh Methodist Church is an unincorporated charity registered in Scotland Ino SC0396551. The registered office is 25 Nicolson Square, Edinburgh, EH8 9BX. 1.1 Accounting convention The financial slalements have been prepared in accordance with the Church's goveming document, the Charities and Trustee Investment (Scollandl Act 2005, the Charities Accounts Iscollandl Regulations 2006 las amended), "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 las amended for accounting periods commencing from 1 January 20191 and the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive 1 January 20191. The Church is a Public Benefit Entity as defined by FRS 102. The Church has taken advantsge of the provisions in the SORP for small charities not to prepare a Slalement of Cash Flows. The financial statements are prepared In sterling, which is the functional cutrency of the Church. Monetsry amoun15 in these financial statements are rounded to the nearest £. The finanaal statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and lo include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below. 1.2 Golng ¢onc9m At the time of approving the financial slalemenls, the Church Council Members have a reasonable expectation that the Church has adequate resources to continue in operational existence for the foreseeable future. The Church has several sources of Income and a significant level of funds held In bank accounts, the Church Council Members believe that the Church will have sufficient funds to be able lo continue as a going concem for a period of not less than 12 months from the date of approval of these financial slemlS. Thus the Church Council Members continue lo adopt the going concern basis of accounting in preparing the financial slatemenls. 1.3 Charltsble funds Unrestrided funds are available for use al the discretion of the Church Council Members in furtherance of their charitable objectives. Restricted funds are subject to specific conditions by donors or grantors as lo 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 lo speafic conditions by donors that the capital musl be maintained by the Church. 1.4 Income Income is recognised when the Church is legally enlilled lo it after any performance conditions have been met, the amounts Can be measured reliably, and it is probable that income will be reived. Cash donations are recognised on reipt. Other donations are regnised On the Chur¢h has been notified of the donation. unless performan 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 reIpl or otherwise if the Church has been notified of an impending dislribulion, the arnounl is known, and receipt Is expected. 13-
THE CITY OF EDINBURGH METHODIST CHURCH NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Accountlng pollcles IContlnu•d} Govemment grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions wll be mel and the grants will be Tecewed. A grant that specrftes performance conditions is recognised in income when the perf0rrnan conditions are met Where a grant does not spècify performance conditions rt is recognised in Income when the proceeds are received or rtteivable. A grant received before the recognition criteria are satisfied 18 recognised as a liability. Deferred income represents rental ineome received in the year in respect of periods post year end. 1.6 Expenditure Resources expended are included in the Slalemenl of Financial Activities on an accruals basis. They are recognised once there is a legal or constructive obligation to make a payment to a third paty, probatrAe that setdemenl wll be required and the amount of the obligation can be measured or estimated reliably. Expenditure is dassrfied under the fdlowing actNity headings.. Charitsble expenditure comprise$ those ¢o$l$ incurred by the charty in t delivery of its adivrties and senrices for its ben8fiaaries. Costs of generating funds comprise investment management fees. Irrecoverable VAT is tharged against the category of resources expended forwhich it was incurred. 1.6 Tanglble fixed asstts Tangible fixed assets are inilialty measured at cost and Subsequently measured at cost or vahJ81ion, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the follt)wng bases.. Land and buildings Equipment not depreciated varying rates from lo33.33% Straight Ine The gain or loss arrsing on the disposal of an asset is determined as the difference between the sale proGeed$ and the carrying value of the asset, and is recognised in the statement of financAz4 actrvities. The charity's lCY is to capiiaise all fixed assets wth a value over £500. Tangible fixed assets indude church helae propety and investsnenl properties which are included in the balance sheet at cost. The Iruslees consider the lives of the church properties are so long and th&r residual values so high bayèd on the lalesl valuation that the annual depreualion charge and accumulated depreciation is not material. Accordingly, no depreciation has been provided on church heritable property. Under Methodist Church practices, te to property is held by Trusteès for Methodist Church Purposes as custodian trustees and the church is the managing trustee responsible for the upkeep of the property and is entitled to any income arising on the use of the property. Methodist Church guidance require5 the relevant managing Iruslee to indude respective property assets in its balance sheeL 1.7 InVtment property Investment property. %thich is property held lo eam rentals arbdlor capitsl appreoation, is inib'ally recognised at cost. which InceS the purchase cost and any directty attributable expenditure. Subsequendy il is measured al fair value at the repKsrting end date. The surF4us or def ot on revaluation is recognised in profit or loss. 14-
THE CITY OF EDINBURGH METHODIST CHURCH NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Accounting policias (Continuadl 1.8 Flxed asset Investments Fixed asset investments are initially measured at transaction price excluding Iransadion Costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net incomellexpenditurel for the year. Transaction costs are expensed as incurred. 1.9 Impairment of fixed assets At each reporting end dalè, the Church reviews the carrying amounts of ils tangible assets lo determine whether there is any indication that those assets have suffered an impairment loss. If any such indtation exists, the recoverable amount of the asset is eslimaled in order lo detemiine the extent of the impairment loss lif any). 1.10 Cash and cash equlvalents Cash and cash equivalents include cash in hand, deposits held at call rith banks, other short-lerm liquid investments wth original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 1.11 Flnanclal Instruments The Church 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. Finanaal instruments are recognised in the Church's balance sheet when the Church becomes party lo the contractual provisions of the instrument. FinancAal assets and Iiabililies are offset, wth the nel amounts prèsented in the financial slalements, when there is a legally enforceable right to sel off the recognised amounts and there is an intention to setue on a net basis or to realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assets, which include debtors and cash and bank balances, are initially measured * transaction price Induding transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement conslilules a financing Iransaclion, where the transaction is measured at the present value of the future receipts discounted at a market rale of interest. Financial assets classified as receivable within one year are not amortised. Basic financial liabilities Basic financial liabilities, Including creditor5 and bank108ns are inf(ially recognised al transaction price unless the atrangemenl conslilules a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rale of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried al amortised cost, using the effective interest rale method. Trade creditors are obligations lo pay for goods or services that have been acquired in the Ordin 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 pri and subsequently measured al amortised wsl using the effective interest method. Derecognition of financial liabilities Financial liabilities are derecognised when the Church's conlra¢lual obligations expire or are discharged or ¢ancelled. 15-
THE CITY OF EDINBURGH METHODIST CHURCH NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Accounting policias (Continuadl 1.12 Employee beneflts The cost of any unused holiday entitlement is recognised in the period in which the employee's servi$ are received. Termination benefits are recognised immediately as an expense when the Church is demonstrably committed to lerminale the employment of an employee or to provide temiination benefits. 1.13 Retlrement beneflts Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. Crltlcal accountlng estlmates and judgements In the application of the Church's accounting policies, the Church Council Members arè required to make judgements, estimate5 and assumptions about the carrying smount of assets and Iiabililies that are not readily apparent from other sources. The èstimates and associated assumptions are based on historical èxperience and other factors that are considered to be relevant. Actual results may differ from these eslimales. The eslimales and underfying assumptions are reviewed on an ongoing basis. Revisions lo accounting estimates are recognised in the period in which the estimate is revised where the revision affects wly that period, or in the period of the revision and future periods where the revision affects both current and future periods. Income from donations and legacies Unrestricted Restricted funds funds 2024 2024 Total Unrestricted Restricted funds funds 2023 2023 Total 2024 2023 Donations and gifts Grants 104,178 2,398 199,503 106,578 199,503 126,956 48,190 175,146 104,178 201,901 306,079 126,956 48,190 175,146 Income from other trading activities Unr9$trl¢ted Unrgstrlctgd funds funds 2024 2023 Room hire income Sundry income 43,317 44,000 1,441 Other trading activities 43,317 45,441 16-
THE CITY OF EDINBURGH METHODIST CHURCH NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Income from investments Unrestricted Endowment funds funds 2024 2024 Totsl Unrestricted Endowment funds funds 2023 2023 Total 2024 2023 Rental income Income from unlisted investments 69,846 69,846 57,928 57,928 3,349 144 3,493 2,317 179 2,496 73,195 144 73,339 60,245 179 60,424 Other Income Restricted funds 2024 Restricted funds 2023 Net gain on disposal of tangible fixed assets 174,858 Raising funds Unrestrlcted Endowment funds funds general 2024 Total Totsl 2024 2024 2023 Investment management fees 42 16 58 167 42 16 58 167 For the year ended 31 August 2023 Investment management fees 150 17 167 For the year ended 31 August 2023 150 17 167 17-
THE CITY OF EDINBURGH METHODIST CHURCH NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Charitable activities 2024 2023 Staff costs Depreciation Property expenses Donations paid Circuit assessment Legal and professional fees 16,519 3,970 151.610 3,090 137,999 11,242 20,114 9,437 146,675 485.865 140,000 1,479 324,430 803,570 Share of support costs (see note 91 sha ol governance costs Isee note 91 67,316 7,092 8,539 4,410 398,838 816,519 Analysls by fund Unrestricted funds Reslricled funds 325,365 73,473 398,838 For the year ended 31 August 2023 Unrestricted funds Restricted funds 321.855 494,664 816,519 Included in 'donalions paid, is £Nil12023".£485,2021 which was transferred lo the Scotland Dislricl following the sale of the propety at 1 Junction Place, Edinburgh during the year. Support costs allocated to actlvltles 2024 2023 Office costs Telephone & broadband Bank charges Management charge Governance costs 4,611 4,743 283 57,679 7,092 4,394 4,075 70 4,410 74,408 12,949 Analysed between: Charitable activities 74,408 12,949 18-
THE CITY OF EDINBURGH METHODIST CHURCH NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Support costs allocated to activitios (Continuadl Support costs have not been separately identified as the Trustees consider there lo be one charitable aclivily, which is lo transform the community by sharing God's love through working with and for others. The management charge of £57,67912023'. £nill consists of amounts payable lo Central Hall Westminster for facilities management and adminislralive assistance. 10 Net movement in funds 2024 2023 The net movement in funds is stated after chargingllcreditingl.. Fees payable for the independent examination of the charity's financial stslemenls Depreciation of owned tangible fixed assets Lossllprofill on disposal of tangible fixed assets 7.092 3,970 4,410 9,437 1174,8581 11 Church Council Membe None of the Church Council Members lor any persons connected with theml reiVed any remuneration or benefits from the Church during the year12023'. no Church Council Members received any remuneration). 12 Employees The average monthly number of employees during the year was". 2024 Number 2023 Number Employment costs 2024 2023 Wages and salaries Social secLJrity costs Other pension costs 15,975 19,116 364 634 525 16,519 20.114 No Employees received emoluments of more than £60,000 in either year. I ministers appointed to the Forth Valley Circuit are paid ntrallY from the Melhodisl Church in London th the costs being apportioned lo the Circuit, which in turn induded those sums within the Assessment paid by ChLJrch Congregations. 19-
THE CITY OF EDINBURGH METHODIST CHURCH NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 13 Gains and losses on investments Unrestricted Endowment funds funds 2024 2024 Totsl Unrestricted Endowment funds funds 2023 2023 Total 2024 2023 Gainslllossesl arising on.. Revaluation of investments 379 278 657 12181 11591 13771 14 Tanglblg flxgd a$$*ts Land and buildings Equlpment Total Cost At 1 September 2023 1,577,466 145,286 1,722,752 At 31 August 2024 1,577,466 145,286 1,722,752 Depreciation and impairment At 1 September 2023 Depreciation charged in the year 123,397 3,970 123,397 3,970 At 31 August 2024 127,367 127,367 Carrying amount At 31 August 2024 1,577.466 17,919 1,595.385 At 31 August 2023 1,577,466 21,889 1,599,355 Under Melhodisl Church practices, title to property is held by Trustees for Melhodisl Church Purposes as custodian Iruslees and the church is the managing Iruslee responsible for the upkeep of the property and is enlilled lo any income arising on the use of the propety. Melhodisl Church guidance requires the relevant managing Iruslee lo include respective property assets in ils balance sheet. 15 Investment property 2024 Fair value At 1 September 2023 and 31 August 2024 485,000 Under Methodist Church practices. lille to property is held by Trustees for Methodist Church Purp(k8es as Custodian trustees and the church is the managing trustee responsible for the upkeep of the property and is entitled to any income arising on the use of the property. Methodist Church guidan reqLJires the relevant managing trustee to include respective property assets in ils balance sheet. -20-
THE CITY OF EDINBURGH METHODIST CHURCH NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 16 Fixed asset investments Llste(I Unllsted Investments Investments Total Cost or valuation At 1 September 2023 Valuation changes 8,487 657 297,500 305,987 657 At 31 August 2024 9,144 297,500 306,644 Carrying amount At 31 August 2024 9,144 297,500 306,644 At 31 August 2023 8,487 297,500 305,987 17 Debtors 2024 2023 Amounts falling due within one year.. Trade debtors Tax recoverable Other debtors Prepayments and accrued income 2,933 12,504 21 4,334 6,512 8,051 6,709 3,924 19,792 25,196 2024 2023 Amounts tslllng due after morg than on& year: Tenants, deposits 9,206 9,206 Total debtors 28,998 34,402 Tenants, deposits of £9,20612023." £9,20618re held in a separate bank account relating to the properties at 4 and 12-16 Ead Grey Street. 21
THE CITY OF EDINBURGH METHODIST CHURCH NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 18 Creditors- amounts falling due within one year 2024 2023 Trade ¢redilors Other creditors Accruals and deferred income 9,877 3,941 43,706 2,285 7,452 53,179 57,524 62.916 19 Creditors: amounts falling due after more than one year 2024 2023 Trade creditors 11,756 11,756 Tenants, deposits of £9,20612023.' £9,206) are held in a separate bank account relating to the properties at 4 and 12-16 Earf Grey Street. The remaining balance represents a tenants deposit of £2,55012023'. £2,550) relating to a lease of part of the property at 25 Nicolson Square. 20 Retirement benefit schemes 2024 2023 Deflned contrlbutlon schemes Charge lo profit or loss in respect of defined contribution schemes 525 634 The Church operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Church in an independently administered fund. -22-
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THE CITY OF EDINBURGH METHODIST CHURCH NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 23 Unrestricted funds At1 September 2023 Incoming resources Resources expended Transfers Gains and At 31 August losses 2024 The Angove Bequest Brian Curtis Bequest Wesley Flat repairs Welcome fund General funds 80,823 80,823 10,000 10,000 781 10,000 23,084 2,803 17481 2,836 10,000 183,3091 217,887 1324,6591 379 124,688 220,690 1325,4071 379 20,350 Previous year: At1 September 2022 Incoming resources Resources expended Transfers Gains and At 31 August losses 2023 The Angove Bequest Brian Curtis Bequest Wesley Flat repairs Welcome fund General funds 80,823 80,823 10,000 10,000 703 2,671 10,000 219,971 12,5931 781 10,000 23,084 127,272 1319,4121 14,5291 12181 218,798 232,642 1322,0051 14,5291 12181 124,688 TheAngove Bequest fund represents a legacy which is lo be used for special Church improvement. The Brian Curtis fund represents a legacy which is lo be used for the improvement of the AV and streaming faalilies at the church. The Wesley Flat repairs fund was set up in the previous year. A proportion of the rental income received from the Wesley flat is designated in order to help cover the costs of repair work on the flat. The Welcome fund represents a donation of £10,000 received during the year to support the Church's 'welcome'. -26-
THE CITY OF EDINBURGH METHODIST CHURCH NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 24 Analysis of net assets between funds Unrestrlcted fund$ 2024 Restrl¢ted Endowment fund$ funds 2024 2024 Total 2024 At 31 August 2024.. Tangible assets Investment properties Investments Current asselsllliabilitiesl Long term liabilities 1,595,385 485,000 297,500 153,965 1,595,385 485,000 306,644 183,932 111,7561 5,282 26,824 111,7561 3,862 3,143 20,350 2,531,850 7,005 2,559,205 Unrestricted funds 2023 Restricted Endowment funds funds 2023 2023 Total 2023 At 31 August 2023.. Tangible assets Investment properties Investments Current asselsllliabililiesl Long term liabilities 1,599,355 485,000 297,500 21,567 1,599.355 485,000 305,987 156,123 111,7561 4,902 131,542 111,7561 3,585 3,014 124,688 2,403,422 6,599 2,534,709 25 Operating lease commitments Les$99 At the reporting end date the Church had outstanding commitments for future minimum lease payments under non-canlIable operating leases, which fall due as follows.. 2024 2023 Vlfithin one year Beeen fv40 and five years 3,586 13,745 3.830 3,830 17,331 7,660 26 Flnanclal commltments. guarantees and contlngent Ilabllltles At the year end there were conlingenl liabilities due to the Relief and Extension Fund for Methodism in Scotland of £17,550 in relation to the Nicolson Square premises12023.. £17,550). -27-
THE CITY OF EDINBURGH METHODIST CHURCH NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 27 Related party transactions No Church Council Members reiVed remuneration during the year 12023.. no Church Council Members received remuneralionl. No Church Council Members received reimbursement of expenses in the year12023.' one Church Council Member received reimbursement of £531. During the year, a lolal of £14,362 was donated to the Church by the Trustees12023.. £16,705). -28-