Administration and Finance 2011

Administration & Finance REPORT OF THE ADMINISTRATION AND FINANCE COMMITTEE GENERAL ASSEMBLY 2011 GENERAL ASSEMBLY 2011 The outline Order of Business in Appendix 1 details the arrangements for the 2011 General Assembly. The General Assembly will meet in the Salutation Hotel, Perth from Wednesday 1st to Friday 3 June. The annual meetings of the Women’s Home and Overseas Committee, all Business Sessions and the Opening and Closing Services of the General Assembly will take place in the Salutation Hotel. The culmination of the General Assembly will be the Closing Service during which the Moderator will give his address. The Leaders’ Forum will take place in Perth United Free Church. GENERAL ASSEMBLY 2012 In accordance with the decision of the 2008 General Assembly that future meetings of the General Assembly be held in a central location, the committee recommends that the General Assembly 2012 be held in the Salutation Hotel, Perth from Wednesday 6th to Friday 8th June. This is a return to the usual week for the General Assembly. STEDFAST The Stedfast Editorial Team is greatly indebted to those who have contributed articles to the denominational magazine over this past year. The team has continued in its effort to produce a magazine that educates and encourages members of the church and beyond. There is space available in every issue for local reports and information and it is hoped that congregations will submit more articles and photographs. The committee advertised the position of Stedfast Secretary and was pleased to receive a number of applications. The committee was pleased to appoint Mr Alastair Wright to this position. Once again the committee is indebted to the General Secretary for his considerable contribution to the production of the magazine. The committee is equally thankful to the Stone Agency for its work and expertise in the design of Stedfast. PRAYER UNION The committee continues to support the ministry of prayer throughout the church through the work of the Prayer Union. The Prayer and Study Guide produced annually continues to play an important part in the work and witness of the church. It is used by many people within the United Free Church and beyond as a helpful aid to meditation and prayer. The Prayer Union Committee led ably by its convener Mrs Wemyss Billows are to be commended on the considerable work involved in the production of the Guide. PROTECTING VULNERABLE GROUPS The Committee can report that Child Protection Seminars to update Congregational Child Protection Coordinators on recent developments have been held in all three Presbyteries. The committee would like to thank the Child Protection Team for their work in leading the seminars. However, new Information has been sent to all Child Protection Coordinators and congregations in respect of changes to the Child Protection Scheme. The new Protecting Vulnerable Groups (PVG) Scheme has been introduced by the Scottish Government and is now in operation. This new scheme includes the need to have Disclosures for a relatively 17

Administration & Finance small number of people within the UF Church who work with those regarded as ‘vulnerable adults’. As well as strengthening safeguards for children, the PVG Scheme seeks to improve protection for adults. For the first time in Scotland, there will be a list of those who are barred from working with protected adults and those who work, on a regular basis, with vulnerable groups will require to join the PVG Scheme. New types of disclosure have also been introduced and forms are available from the Church Office. There are a number of benefits to the new disclosures. Within the Church people will apply to become ‘scheme members’ and the individual and the Church will receive a ‘Scheme Record Disclosure’. Individuals will require to keep safe their Scheme Record Disclosure and if they apply to work elsewhere the new organisation they apply to will only require a ‘Scheme Record Update’. The form to be completed in this case is shorter and simpler. One of the benefits of the PVG Scheme member is that it will significantly reduce the need for people to complete a detailed application form every time their circumstances change. Another benefit is that organisations and groups, as part of their safe recruitment processes, will be able to do a quick and simple check to verify that a person is a PVG Scheme member and therefore not barred from working with children or protected adults or both. For the first year only new appointees will require these checks but gradually this will include everyone currently working with children and young people as well as those working with vulnerable adults. There is a need to appoint several more people to be involved in dealing with such applications within presbyteries and the Church will require to have people in place by February 2012. The Committee will work with Presbyteries to put this in place. The General Secretary has met with the National and Presbytery Child Protection Coordinators to update them on the Protecting Vulnerable Groups Scheme (PVG). CHURCH HYMNARY TRUST The General Assembly agreed last year to withdraw from the Church Hymnary Trust. This was agreed as the Trust reported that it was unlikely that another edition of the Church Hymnary would be produced. As a result the General Trustees of the United Free Church have now received payments totalling £9,960.37 from the Trust. QUINQUENNIAL VISITATION During the year the following quinquennial visitations have been carried out: East: Bannockburn: Murrayfield, Broxburn: St Nicholas, Portobello: Wilson Memorial West: Clydebank, Dumbarton: Dalreoch, Uddingston: Park North: Aberdeen: Torry, Cunningsburgh, Sandwick MODERATORIAL VISITATION Thanks are expressed to the Moderator, Rev Robert Owens and Mrs Jane Owens for their visits to congregations during the past year and for the encouragement they have brought. East: Dunfermline, Gorebridge, Leith: Ebenezer, Portobello, Sauchie & Fishcross. West: Dumbarton: Dalreoch, Glasgow: Candlish: Wynd, Cathcart, Croftfoot, Darnley, Drumchapel, Knightswood, Partick; Greenock: St Andrew Square, Largs, Lochwinnoch

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Administration & Finance North: .Aberdeen: Torry, Auchterarder, Boddam, Cunningsburgh, Dounby, Ferryden, Montrose: Knox’s, Perth, Sandwick Congregations are reminded that, any requests for visits by the Moderator should be made through the Church Office. CHURCH OFFICE The committee continues the regular monitoring and maintenance of the Church Office. It can report that there have been no major repairs required in the past year. THE CHURCHES AGENCY FOR INTER FAITH RELATIONS A request was received from the above body asking for member churches of ACTS for their position on Inter Faith matters. The Committee considered the issue and was aware that the Church had not stated its mind on the matter. It was felt that inter faith relations are of growing importance and the Committee recommends that this matter be referred to the Panel on Doctrine requesting that it report its findings to the General Assembly of 2012. APPEAL COMMISSION The committee recommend that the following members be elected to serve on the Appeal Commission for the coming year. Rev A M Ford (Chairman), Rev I F R Lloyd (Vice Chairman), Rev M C Keane, Rev G G Brown, Rev I A Boa, Mr W Cairns, Dr I Smith, Miss J Doran, Rev A D Scrimgeour, Rev C C Brown, Rev D Lyon, Mr A Scott, Miss L Mathieson, Rev G B Bruce, Rev A Ritchie, Miss J Ramsay, Mr G H McRobb, Mr I Shering, PANEL ON DOCTRINE The committee recommend that the following members be elected to serve on the Panel on Doctrine for the coming year: Revs: I.F.R Lloyd (Convenor), D. Cartledge, Dr J.O.Evans, J.O. Fulton, A.D. Scrimgeour, Mr A.Scott, and the Principal Clerks. THANKS The committee would like to record its grateful thanks to all members and adherents of the United Free Church who assist the work and witness of the Church. Many people give faithfully of their time and resources in the service of God and this is greatly appreciated. The committee would record its thanks to the General Secretary, Rev John Fulton, Mrs. Helena Jarvis and Rev. Peter Dick for their faithful work and support. FINANCE Basis and Content of this Report The Report and Financial Statements for the year ended 31 December 2010 are at the back of Assembly Reports. Commissioners may obtain detailed Assembly Fund Accounts from the General Secretary. This Report highlights the principal factors affecting changes in Funds in 2010; explains Budget and allocation of Target for 2011; the importance of these to the level of the Target recommended for 2012; and provides an assessment of the U.F. Church’s financial position both denominationally and congregationally. The General Trustees of the Denomination hold funds on behalf of some congregations, presbyteries and other bodies. The amount and movement in these Funds are given in Note 15 ‘Funds held on Trust’ and are not included below. 19

Administration & Finance

Movement in Funds 2010 Funds of Assembly Committees’ owning property have two elements ‘revenue/liquid’ funds, represented by cash/investments, and ‘Property’ funds. The former is realisable; the latter long term commitments. Property of congregations owned by the denomination is recorded at cost less depreciation; Newton Place (church office) at market value (re-valued 5 yearly) then depreciated; manses and retirement homes are shown at purchase price plus cost of improvements. The ‘book cost’ of property does not reflect its market value. Total Funds Revenue funds Property funds Funds at close of year

2010 £ 1,632,026 1,701,941 ________ 3,333,967

2009 £ 1,479,733 1,704,865 ________ 3,184,598

Increase (decrease) £ 152,293 ( 2,924) ______ 149,369

Movement in Revenue Funds: Incoming resources amount to £1,138,251 and resources expended £1,088,342 giving net increase of £49,909. A legacy received of £95,828 masks the underlying deficit between ordinary income and expenditure of £45,919. Gains and losses on the sale and/or revaluation of investments total £99,460 giving the total increase in revenue resources of £149,369 (2009 - £81,848). Movement in Property Funds: Improvements on a retirement home costing £6,590 were capitalised; depreciation on certain properties amounted to £9,514 giving a net movement of (£2,924). Target and Assembly Committee Funds Schedule, page 25, gives, columns 1-8, summary of the movement in all funds (excluding property) in total and for each Committee in 2010. The ‘minimum’ target set for 2010 is £47 per member based on a membership of 3554, giving expected income of £167,038. Not only has this been 99.38% met, a number of congregations made increased contributions toward the £60 necessary to cover all core costs, giving actual target income of £182,154 (109% on minimum). This is encouraging and to be commended for all congregations. As noted above the deficit between income and (core) costs is £45,919. The two committee funds which bear this deficit are General Purposes and Ministry. In 2010 this has been partially covered by gain on investment values. However recognising the ongoing responsibility which these funds bear it is essential their resources are maintained. They are considered adequate at present but if necessary General Trustees will be asked for assistance. Budget and Target Allocation 2011 The schedule on page 25 gives Budgets and Target Allocations for 2011 for each Assembly Committee and the funds under their responsibility. Funds presently receiving a target allocation are General Purposes, Ministry, Youth, Church and Society and Ecumenical Relations. In 2010 and 2011 Christian Education & Evangelism is considered to have 20

Administration & Finance sufficient resources and no target allocation made. This will be kept under review as will the resources of other funds not receiving an allocation Membership at the beginning of 2011 is 3394 (2010:3554). Minimum Target set is £50 which gives income of £169,700. The Budget for 2011 anticipates that the minimum will again be exceeded and will give income of £182,000, the same level as 2010. On this basis there will still be a deficit in General Purposes fund of £22,000. Should contributions at the higher rate exceed this estimate the surplus will be applied to General Purposes. The deficit budgeted for Youth includes support for the UCCSA youth visit in August 2011. £6313 was received in 2010 towards this and it is anticipated that further donations from congregations in 2011 and a contribution from the Overseas fund will cover the costs. These figures and facts highlight the necessity for all congregations to seek to exceed the minimum target level of £50 and aim toward £60 per member for 2011. Target for 2012 Denominational membership still declines. Administration and Finance Committee recommend that minimum target for 2012 be £53 per member and exhort congregations to aim to contribute up to £65 per member which is the amount in 2012 necessary to cover the core costs of the denomination. Denomination and Congregation Financial Resources Denomination Resources are discussed above and given in detail in the attached Schedules, Reports and Financial Statements. Congregation Funds and Resources and the movement therein during 2010 are on pages 26 - 28. These figures are taken from the Annual Schedules and Financial Statements provided by Congregations. The financial resources of the Denomination and of Congregations are substantial in the context of the number of congregations and the present membership but the ‘division’ of resources and financial experience varies considerably and in many cases is becoming serious. Much of what was said in last year’s Finance Report might simply be repeated but identifying answers to the underlying key issues which we face as a Denomination and we believe face other Denominations/Churches throughout our country are complex and heart searching. It may seem shallow but is undoubtedly true that the key issues cannot centre on financial resources but rather human resources, personal commitment, spiritual conviction, compassion for the souls and needs of human beings, and God honouring trust and passion. In the context of finance how can these resources locally and nationally be stewarded and applied for the glory of God and the advancement of the Church of the Lord Jesus Christ? Practical issues financially are: Fewer congregations are able to support full time ministry and working costs.  A number of congregations with part-time ministry depend upon reserves, including manse funds or letting of manse to resource ministry and working costs.  Presbyteries are stretched to provide adequate ministry and pastoral care to congregations who are dependent on an Interim Moderator and pulpit supply.  Denomination has been asked to consider how they can relieve the financial burden of supporting full time ministry recognising many ministers are required to devote significant time to responsibilities out-with their congregation duties e.g. presbytery, assembly committees, interim moderator and to ensure ministers are properly remunerated. These will continue to exercise the consideration, wisdom and ingenuity of the Administration and Finance Committee with the aim of resourcing the provision of ministry 21

Administration & Finance and pastoral care to all congregations and members dispersed throughout Scotland. Also, are there opportunities for growth and fresh outreach which should be resourced? Charity Legislation and ‘OSCR’ (Office of the Scottish Charity Regulator) There has been no significant change in Charity Legislation but OSCR is determined to ensure charities adhere to charity accounting standards or risk their charity status. Instructions were given to congregations in 2010 not to submit their report and financial statements to OSCR until Presbytery finance committees had reviewed them. We are aware that a number of Reports and Returns were still returned as non-compliant and correction had to be made. The problem in some cases lay in figures in the Receipts and Payments schedule not agreeing with the corresponding figures on the Movement in Funds Statement. Slightly revised ‘models’ of the Report and Financial Statements were issued for 2010 together with advice and instructions. For 2010, it is advised that Presbytery Finance Committees be given the opportunity of reviewing the Report and Financial Statements before submission to OSCR and any comment or advice will be given before end April so submission to OSCR is not delayed. The advice given is that Presbytery Finance Committees and Church Office be informed of any case of ‘non-compliant’ Reports which are returned by OSCR so that corrections are made and help can be offered to avoid a similar situation arising in future Governance and OSCR A key requirement of charity legislation and of OSCR is to ensure proper governance is exercised by all the charity trustees named in the Congregation’s Report, each and all of whom are responsible for its activities and specifically the annual Report and Financial Statements. The charity trustees are the members of the Kirk Session and the members of the temporal court. Where the congregation has a Deacons’ Court or Congregational Board the membership of these courts include all Charity Trustees but where there is a Committee of Management this is not the case. It is essential therefore that a procedure is introduced which ensures that all Charity Trustees are involved in the approval of the Congregation Report and Financial Statements. Paragraphs 16 - 17 of the Deliverance address this issue.

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Administration & Finance Congregational Treasurers We acknowledge the additional work and commitment which has been required from all treasurers in recent years to fulfil and the requirements of Charity Law and of OSCR and thank treasurers and responsible committees for their patience and perseverance. Audit of Church Accounts Alexander Sloan, Chartered Accountants, who are the Auditors appointed by General Assembly have carried out their audit. It is recommended that this firm be reappointed for the 2011 audit. STATISTICS Presbyteries: The number of Presbyteries remains at 3. Congregations: The number of Congregations at the end of 2010 was 62, a decrease of 1, following the dissolution of Westray . Name of Presbytery 1. East 2. West 3. North

Number of Congregations 16 28 18

Roll of Ministers, etc. Ministers: a) Retired ................................................... b) In Pastorate..................................... c) Others ............................................ Total Part-time Ministers & Pastors...................................... Students................................................................... Widows of Ministers.................................................. Widows of Pastors....................................................

2009 27 21 5 53

2010 26 20 5 51

10 1 14 2

14 1 13 2

Persons and Agencies: In the table appended to this Report the analysed details of schedules received from Congregations will be found with the corresponding figures for previous years. Communicants: The number of Communicants on the Roll at 31 December 2010 was 3,394 compared with 3,600 at the end of 2009. Admissions were as follows: By Profession By Certificate By Resolution

2009 31 46 21

2010 23 38 12

149 73 104

134 61 84

Removals were as follows: By Death By Certificate Without Certificate

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Administration & Finance

Office-Bearers: The number of Elders was 490 of whom 214 were women. There were 346 Deacons, Managers or Board Members who are not Elders, of whom 241 were women. Baptisms: There were 29 Baptisms of which 1 was adult. Sunday Schools:

Schools Classes Teachers Children

2009 38 64 136 360

2010 35 56 127 333

25 124

22 124

54 721

51 772

164 2,199

169 2,124

Bible Classes/ Youth Fellowships: Groups Membership Youth Organisations: Number Membership Adult Organisations: Number Membership

Roll of persons not yet Communicants: The Committee recommend to the Kirk Session the practice of keeping a careful record of all persons not yet communicants who are in any way connected with the Church either by attendance or by affiliation with any organisation of the Church.

In the name of the Committee, ARCHIBALD M FORD JAMES G MARSHALL JOHN O. FULTON

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Convener Vice-Convener Secretary

Administration & Finance

Appendix 1 GENERAL ASSEMBLY 2011 OUTLINE PROGRAMME SALUTATION HOTEL, PERTH WEDNESDAY 1st June 11.00 & 2.15 Committee on Women’s Home and Overseas. 11.00

Leaders’ Forum (in Perth UF Church)

7.00

Opening of General Assembly

THURSDAY 2nd 09.45 Opening Devotions Memorial Tributes Reception of Delegates from other Churches Report of Assembly Business Committee Report by Committee on Women’s Home and Overseas Presentation by Christian Education & Evangelism Committee Presentation by Ecumenical Relations Committee Presentation by Administration & Finance Committee Breaks will be: Lunch 12.30 – 1.45, Tea 4.30 – 6.00 (Meal at 5 p.m.) with tea/ coffee from 11 – 11.15 and 3.00 – 3.15 p.m. The Annual meeting of the Friends of the Students Association will be at 4.30 p.m. FRIDAY 3rd 09.45

Opening Devotions Representative of Scottish Bible Society Presentation by Ministry Committee Presentation by Overseas Committee Presentation by Youth Committee Presentation by Church & Society Committee Report by General Trustees Committee on Records and Minute Books Any business left over from previous diets/ closing items Breaks will be: Lunch 12.30 – 1.45, Tea 4.30 – 7.00 (Meal at 5 p.m.) and tea/ coffee from 11 – 11.15 and 3.00 – 3.15

7.00

Closing Service Including Moderator's Address

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