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Docusign Envelope ID: DCB8C72C-C710-471F-8B5B-6CF595ADEB19
Chalmers Church Edinburgh
| Chalmers Church Edinburgh | Chalmers Church Edinburgh |
|---|---|
| Contents ofthe Financial Statementsfor theyearended 31 August 2025 | |
| Page | |
| Report ofthe Trustees | 1-5 |
| Report ofthe Independent Auditor | 6-8 |
| Statement ofFinancial Activities | 9 |
| Statement ofFinancial Position | 10 |
| Statement ofCash Flows | 11 |
| NotestotheFinancialStatements | 12-19 |
Docusign Envelope ID: DCB8C72C-C710-471F-8B5B-6CF595ADEB19
Chalmers Church Edinburgh
Report of the Trustees for the year ended 31 August 2025
The Trustees present their report and audited financial statements of the charity for the year ended 31 August 2025.
The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006, the accounting policies set out in the notes to the accounts, and comply with the applicable Statement of Recommended Practice (SORP 2019), providing a true and fair view for charities preparing accrual accounts.
Governing document Chalmers Church Edinburgh was registered on 19 February 2014 as a Scottish Charitable Incorporated Organisation with the Office of the Scottish Charity Regulator under charity number SC044674.
The Church is governed by a Constitution.
The Trustees have no liability to pay any sums to help to meet the debts or other liabilities if it is wound up.
Charitable objectives The Church’s purpose is the advancement of the Christian religion in Scotland, and the world, for the public benefit through the maintenance of a body of Christian believers in Edinburgh, founded on the Basis of Faith, and engaged in serving God through worship, discipling, pastoral care and outreach.
Basis of Faith
The Church’s Basis of Faith requires acceptance of the Holy Bible, comprising the scriptures of the Old and New Testaments, as the inspired Word of God and the supreme authority in matters of faith and life. In explanation and clarification of this acceptance, but not in dilution thereof: e As aconfessional church, the Church takes the Westminster Confession of Faith as its subordinate standard for the purposes of stating what the Church believes the Bible to teach on the matters addressed in the Confession.
e The Elders may by Special Resolution from to time adopt and amend an Ethos Statement further clarifying the Church’s understanding of the tea _g of the Holy Bible and of the Westminster Confession of Faith.
blic benefit e Church provides direct public benefit by fulfilling haritable purpose of the advancement of religion through rship, discipling, pastoral care and outreach.
e Church provides indirect public benefit by: e Providing education in the Christian faith; and e Arranging for communicant members tobe inv din activities directly relieving poverty and distress. ~ Office Address - Address
nker ditor and Accountant nk of Scotland ple athan N Innes FCCA e Mound es & Partners Limited inburgh artered Certified Accountants and Statutory Auditors 2 3EW rdross Street erness 3 SNN
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Docusign Envelope ID: DCB8C72C-C710-471F-8B5B-6CF595ADEB19
Chalmers Church Edinburgh
Report of the Trustees for the year ended 31 August 2025
Solicitor
Lindsays Caledonian Exchange 19a Canning Street Edinburgh EH3 8HE
year and to the date of this report are listed ee —
Recruitment and appointment of Trustees Appointment of Trustees is solely by resolution of not less than 75% of the Trustees in office from time to time. To be appointed as a Trustee a person must (a) be male and aged 18 or over; (b) must not be disqualified from being a charity trustee under the Charities and Trustee Investment (Scotland) Act 2005 as amended, consolidated and reenacted from time to time; (c) must confirm his personal acceptance of the Basis of Faith to the satisfaction of the Trustees.
Trustees’ induction and training Newly appointed Trustees will have the opportunity to discuss the work of the Church with Trustees to acquaint themselves with the activities of the Church. Trustees will seek opportunities for appropriate ongoing training in their role.
Organisational structure The Trustees meet fortnightly, or more frequently as needs be, and are responsible for the strategic direction and policy of the Church. A scheme of delegation is in place and day-to-day responsibility for the running of the Church rests with the principal office bearers and members of the staff team. Committees of Trustees, which also include communicant members, have been established to assist Trustees in the areas of finance, buildings and mission support. Each committee is chaired by a Trustee.
Risk management The Trustees are responsible for identifying the major risks faced by the Church and for determining the appropriate course of action to manage those risks. A Risk Register is maintained by Trustees and reviewed quarterly. Appropriate insurance cover is in place for risks relating to property, employees and liability cover.
The principal risks, and plans and strategies for mitigating these are around the areas of: e Loss of donation income which is mitigated by regular communication of vision and financial needs to supporters and monitored by management accounts.
e Loss of vision which is mitigated by maintaining clarity of the vision underlying activities.
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Docusign Envelope ID: DCB8C72C-C710-471F-8B5B-6CF595ADEB19
Chalmers Church Edinburgh
Report of the Trustees for the year ended 31 August 2025
Achievements and performance
The Trustees are pleased to report the continuation of the Church’s gospel work during the year.
Principal activities
The principal activities of the Church are public worship, the spiritual development of its communicant members, and the mission to tell others the good news of Jesus Christ. These activities are underpinned by prayer meetings held before services on Sundays and monthly on Tuesday evenings. The vision of the Church is "Passionate for the glory of God: reaching unbelievers with the gospel, building committed disciples, training gospel workers, sending and supporting gospel partners".
Public worship
There are typically three services each Sunday at 9.30am, 11.30am and 6.30pm. Attendance at the morning services is around 400, including 75 children, with around 150 attending the evening service. Additional services are held at Christmas and Easter.
Spiritual development
Apart from Sunday services and the preaching of God’s Word, small groups are the principal method of providing discipleship, accountability and spiritual care. The Trustees’ vision is that all members of the congregation are part of a small group as far as possible. Around 340 members are part of the various small groups - home, student, young worker and daytime groups. The Church provides a full educational programme for children. Groups for children from age two to secondary three meet during the 9.30am Sunday service for Bible teaching, games and activities. A créche for younger children meets during the 9.30am morning service. In addition, older teenagers meet before the evening service for teaching and fellowship.
Outreach
The Church has a number of gospel partners at home and abroad which it supports through prayer, finance, regular contact and other practical support. Locally, the Church supports the care shelter for homeless in the city and runs various activities for the community. These include a weekly youth club, an English conversation class for internationals, and a baby and toddler group. The local community are also invited to festival services. The Church also offers regular courses exploring the Christian faith.
Training future leaders
The Church is committed to training gospel workers through our ministry associate and leader in training programmes. The Church currently has five ministry associates and three leaders in training.
Contribution of volunteers
A valuable contribution is made by volunteers who assist the Trustees in the delivery of activities. Each week around 80 volunteers serve to support the church services and activities. They serve in a variety of ways from set-up and playing in the band to leading children’s work and flower arranging. Additional volunteers support the mid-week activities of the Church. The Church remains committed to recruiting more volunteers to assist in a range of activities across the organisation.
Staff
The Trustees thank the staff for their dedication and hard work over the year. They are integral to the functioning of the Church.
The Senior Minister Robin Sydserff resigned on 8 September 2024 following his appointment as Director of The Proclamation Trust. The Trustees have appointed Mark Oden as the next Senior Minister who will take up the role in March 2026.
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Chalmers Church Edinburgh
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Report of the Trustees for the year ended 31 August 2025
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Financial review
Principal funding sources
The principal funding source for the Church is donations by Trustees, communicant members and adherents, along with the associated Gift Aid. Some funding for the Restricted property fund has been provided by grant-making Trusts. Financial results
The General fund (an unrestricted fund for the general purposes of the Church) received donations of £560,200 during the year (2024: £502,514), much of it attracting Gift Aid. The balance on the General fund at the year-end was £127,781 (2024: £87,360). The Restricted Church Family Support fund is a restricted fund for the support of those in the congregation in financial need.
The Restricted property fund, a restricted fund for the acquisition and development of permanent premises for the Church, received donations of £nil during the year (2024: £10,000) and grants of £8,194 (2024: £8,768). The Designated property fund, an unrestricted fund for the acquisition and development of permanent premises for the church.
Reserves policy
Unrestricted funds are described in note 19 of the accounts. e The Designated assets fund has a balance of £706,988 (2024: £632,006), which represents the net book value of the fixed assets held by the church less loans outstanding on those assets. e The Designated property fund has a balance of £7,067 (2024: £48,060), which is held for future upgrading of church premises. e The Designated revaluation reserve fund has a balance of £90,000 (2024: £90,000), which represents the revaluation value of the manse. Restricted funds are described in note 20 to the accounts. These are subject to restrictions by the terms on which Trustees solicited donations or by restrictions imposed by the donor. e The Restricted property fund was has a balance £nil (2024: £1,427). e The Restricted Church family support fund has a balance of £1,790 (2024 £1,790), which is available for distribution in future years.
It is the aim of the church to maintain unrestricted general funds at a level which provides adequate working capital for general activities. General reserves amounted to £127,781 (2024: £87,360). The charity’s total reserves amounted to £933,626 (2024: £860,643) which the Trustees are satisfied meets the needs of the general activities.
Going Concern
Trustees have concluded that it is appropriate to prepare the accounts on a going concern basis. A detailed four year cash and income & expenditure budget has been prepared which demonstrates that the charity is budgeted to operate without significant recourse to brought forward reserves in the general fund. The major risk in the assumptions made in preparing the budget is in the assumption that congregational donations will continue to hold up and rise to meet increased levels of assumed donations.
Grant making policy
The Church makes grants to individuals and organisations in accordance with the Constitution and in fulfilment of its charitable objectives. These are disclosed in note 11 to the accounts.
Remuneration
The Church sets remuneration for key management personnel by reference to external benchmarking.
Plans for the future
The Church will continue to give specific focus to its principal activities of public worship, the spiritual development of its members, and the mission to tell others the good news of Jesus Christ.
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Docusign Envelope ID: DCB8C72C-C710-471F-8B5B-6CF595ADEB19
Chalmers Church Edinburgh
Report of the Trustees for the year ended 31 August 2025
Trustees’ responsibilities statement
The trustees are responsible for preparing the Trustees’ Annual Report 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 requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the Charity for that year.
In preparing these financial statements, the Trustees are required to:
° select suitable accounting policies and then apply them consistently; ° observe the methods and principles in the Charities SORP 2019 (FRS 102); ° make judgements and estimates that are reasonable and prudent; ° state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and ° prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the church’s financial position and enable the Trustees to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). The Trustees are also responsible for safeguarding the assets of the church and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
n 18th February 2026 and signed on their behalf by:
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Docusign Envelope ID: DCB8C72C-C710-471F-8B5B-6CF595ADEB19
Chalmers Church Edinburgh
Report of the Independent Auditors to the Trustees for the year ended 31 August 2025
Opinion
We have audited the financial statements of Chalmers Church Edinburgh (the ‘charity’) for the year ended 31 August 2025 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including a summary of 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: e give a true and fair view of the state of the charity’s affairs as at 31 August 2025, and of its incoming resources and application of resources, including its income and expenditure for the year then ended; e have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and e have been prepared in accordance with the requirements of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006.
Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the 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 22 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 We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: e the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
e the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
Other information The trustees are responsible for the 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. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Innes & Partners Chartered Certified Accountants
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Docusign Envelope ID: DCB8C72C-C710-471F-8B5B-6CF595ADEB19
Chalmers Church Edinburgh
Report of the Independent Auditors to the Trustees for the year ended 31 August 2025
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 require us to report to you if, in our opinion:
e the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or
© proper accounting records have not been kept; or e the financial statements are not in agreement with the accounting records; or e we have not received all the information and explanations we require for our audit.
Responsibilities of trustees As explained more fully in the trustees’ responsibilities statement set out on page 5, the trustees are responsible for the preparation of financial statements which 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’s responsibilities for the audit of the financial statements We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and 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.
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: e the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; e we identified the laws and regulations applicable to the charity through discussions with Trustees and other management, and from our wider knowledge and experience of the charity sector; e we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including the Charities SORP FRS 102, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended).
e we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence and obtaining legal confirmations; and e identified laws and regulations were communicated to all members of the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
Innes & Partners Chartered Certified Accountants
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Docusign Envelope ID: DCB8C72C-C710-471F-8B5B-6CF595ADEB19
Chalmers Church Edinburgh
Report of the Independent Auditors to the Trustees for the year ended 31 August 2025
The extent to which the audit was considered capable of detecting irregularities including fraud (cont’d) We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
e making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
e considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
Audit response to risks identified
To address the risk of fraud through management bias and override of controls, we: e performed analytical procedures to identify any unusual or unexpected relationships; e tested a sample of journal entries to identify unusual transactions based on pre-defined risk criteria identified as part of our risk assessment;
e assessed through planned audit procedures, such as recalculation, whether judgements and assumptions made in determining the accounting estimates set out in Note 1 were indicative of potential bias; and e investigated the rationale and validity of significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which
o underlying supporting documentation; charged with governance; potential litigation and claims; and OSCR and the legal advisors of the charity.
ures described above. The more removed that laws and regulations that we would become aware of non-compliance. Auditing standards non-compliance with laws and regulations to enquiry of the Trustees latory and legal correspondence, if any.
n be harder to detect than those that arise from error as they may
is available on the Financial Reporting Council's website at: his description forms part of our Auditor's report.
ees, as a body, in accordance with Regulation 10 of the Charities it work has been undertaken so that we might state to the charity’s them in an auditor’s report and for no other purpose. To the fullest me responsibility to anyone other than the charity and the charity’s ort, or for the opinions we have formed.
Cer2C9861F6B32C4E1DocuSigned %by: Partuers limited
atutory Auditor 12 of the Companies Act 2006.
9 Ardross Street Inverness IV3 5NN
Date: 18th February 2026
Innes & Partners Chartered Certified Accountants
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Docusign Envelope ID: DCB8C72C-C710-471F-8B5B-6CF595ADEB19
Chalmers Church Edinburgh
Statement of Financial Activities for the year ended 31 August 2025
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Unrestricted Unrestricted
General D R 2025 General D Restricted 2024
fund Total fund funds Total
Notes £ £ £ £ £
Income and endowments from:
Donations and legacies 3 663,640 18,768 613,006
Investment income 4 - - 207
Charitable activities 5 7,871 - 7,868
Other trading activities 6 - - 16,568
Total income and endowments 671,511 18,768 637,649
Expenditure on:
Charitable activities 7 598,528 18,387 607,465
Total expenditure 598,528 18,387 607,465
/(expenditure) 72,983 381 30,184
etween funds 19 - 46 -
ent in funds 72,983 427 30,184
ion of funds:
brought forward 860,643 2,790 830,459
carried forward 19 933,626 3,217 860,643
d by:
d fund
127,781 - 87,360
funds
d assets 706,988 706,988 632,006 - 632,006
d property 7,067 7,067 48,060 - 48,060
n reserve - 90,000 90,000 - 90,000 - 90,000
funds
church family support - - 1,790 1,790 - - 1,790 1,790
property - - - - - - 1,427 1,427
127,781 804,055 1,790 933,626 87,360 710,066 3,217 860,643
nd expenditure derive fro tinuing activities.
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pages 12 to 19 form part se financial statements.
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Docusign Envelope ID: DCB8C72C-C710-471F-8B5B-6CF595ADEB19
Chalmers Church Edinburgh
Statement of Cash Flows for the year ended 31 August 2025
Notes
Net movement in funds for the reporting period (as per the Statement of Financial Activities)
Adjustments for: Depreciation charges Revaluation gain Interest paid (Increase)/decrease in debtors Increase/(decrease) in creditors Net cash flow from operating activities Cash flows from financing activities: Repayments of long term loans Interest paid Net cash flow used in financing activities
Net (decrease) / increase cash and cash equivalents in the year
Cash and cash equivalents brought forward Cash and cash equivalents carried forward
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Docusign Envelope ID: DCB8C72C-C710-471F-8B5B-6CF595ADEB19
Chalmers Church Edinburgh
Notes to the Financial Statements for the year ended 31 August 2025
- Accounting policies Basis ofpreparation and assessment of going concern Chalmers Church Edinburgh is a registered charity in Scotland. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities are included in the trustees’ report.
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended)and UK Generally Accepted Accounting Practice.
The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented 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. Fund accounting Unrestricted funds are available for use at the discretion of Trustees in furtherance of the general objectives of the Church.
Designatedfunds are unrestricted funds earmarked by Trustees for particular purposes. Restricted funds are subject to restrictions on their expenditure by the terms on which Trustees solicited donations or by restrictions imposed by the donor.
Income recognition All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled No amount is included in the financial statements for volunteer time in line with the SORP. Further detail is given in the Trustees’ Annual Report. Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.
Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.
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Docusign Envelope ID: DCB8C72C-C710-471F-8B5B-6CF595ADEB19
Chalmers Church Edinburgh
Notes to the Financial Statements for the year ended 31 August 2025
Expenditure recognition
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings: e Expenditure on charitable activities includes costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them; and e Other expenditure represents those items not falling into the categories above. Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity.
Cash and cash equivalents
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of twelve months or less from the date of acquisition or opening of the deposit or similar account.
Tangible fixed assets
Fixed assets are capitalised at cost where the value is greater than £3,000 (2024: £3,000) less accumulated depreciation and accumulated impairment losses. For property assets, a revaluation review is performed each year. Depreciation is provided on all tangible fixed assets, at rates calculated to write off the costs, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows: Property 2% per annum straight line Property is measured at fair value with a formal external valuation obtained every 5 years and an interim valuation performed by the Trustees after 3 years. The Trustees consider this a reasonable timeframe to reflect changes in market conditions. Valuations included in the financial statements have been prepared by external experts using appropriate and consistently applied valuation methods in accordance with MRICS accepted valuation methodologies. The assumptions and inputs used are assessed as reasonable by the trustees and reflect conditions at the valuation date. The valuation approach and methodology are consistent with those applied at the previous valuation date. Since the date of valuation, the trustees have assessed whether there have been any significant events or changes in circumstances that would require a material adjustment to the valuations recorded, and have concluded that the valuation previously determined still materially reflects the value of the relevant properties at the end of the financial year, being 31 August 2025. Consequently, the trustees, have in accordance with FRS 102 and the applicable SORP, concluded that no valuation need be performed again for this year.
Financial instruments The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Financial Activities.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
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mers Church Edinburgh
to the Financial Statements for the year ended 31 August 2025
ial instruments (cont’d)
ncial assets measured at cost less impairment, the impairment loss is measured as the difference between an arrying amount and best estimate, which is an approximation of the amount that the charity would receive for t if it were to be sold at the balance sheet date. al assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle ility simultaneously.
al assets are derecognised when the contractual rights to the cashflows from the asset expire, or when the has transferred substantially all the risks and rewards of ownership.
al liabilities are derecognised only once the liability has been extinguished through discharge, cancellation or
and creditors receivable / payable within one year and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction ny losses arising from impairment are recognised in expenditure.
Going concern
The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.
Pensions
Employees of the charity are entitled to join a defined contribution pension scheme. The church’s contribution is restricted to the contributions disclosed in note 9. The costs of the defined contribution scheme are included within charitable expenditure. 2. Judgements in applying policies and key sources of estimation uncertainty In preparing the financial statements, management is required to make estimates and assumptions which affect reported income, expenses, assets, and liabilities. Use of available information and application ofjudgement are inherent in the formation of estimates, together with past experience and expectations of future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates. The Trustees are satisfied that the accounting policies are appropriate and applied consistently. Key sources of estimation have been applied in determining the value of the properties and the depreciation rates. Management judgement is used to determine whether the cost of additions to tangible assets improve the asset, and is so capitalised, or results in a repair to the asset such that it returns the asset to its previous condition, and is so expensed. In recent years, tangible assets have undergone a substantial amount of cost (c£1.5m) to return them to a position that means they are fit for purpose. As reflected in these financial statements, and in the comparative period, the majority of these costs have not resulted in improvements, meaning they have been expensed.
Management consider each cost separately and conclude on whether they improve the asset and should be capitalised, or if the cost does not add any value to the asset, and should be expensed. There is a risk that management judge this incorrectly, resulting in costs either being capitalised or expensed when they shouldn’t be. Assets are revalued periodically in accordance with FRS 102, meaning that the cost of additions, or repairs, are taken into account in the value of the asset, at valuation, as soon as reasonably practicable.
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