The trustees present their annual report and financial statements for the year ended 31 March 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Trust's Memorandum and Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
The Trust's objects are to advance heritage through preserving for public benefit the historical, architectural and constructional heritage that may exist in and around Kirkcaldy buildings (including any part of a building, and any other structure or erection) of particular beauty or of historical architectural or constructional interest. The charity will do this by acquiring or managing suitable properties.
Kirkcaldy Old Kirk Trust was formed by a group of local people concerned to maintain the heritage of Kirkcaldy Old Kirk for the community. The early focus of its efforts was twofold : to obtain an options appraisal concerning its future use and sustainability, and to secure the future of the building after its owners, the Church of Scotland, declared it surplus to requirements.
With the financial support of Fife Council, and advice contributed from the Scottish Churches Renewal Trust, an options appraisal and outline business plan were prepared for the Trust which indicated the Old Kirk could become self-sustaining by developing its potential as a community facility as a heritage centre.
The challenge of raising substantial capital sum required by the Church of Scotland in a few weeks in June 2011 to secure ownership of the Old Kirk was achieved through the generosity of an unsecured loan of the purchase price of £75,000 by a public-spirited individual.
Public support for the aims of the Trust has continued significantly and enabled the Trust to meet many start-up costs through substantial donations.
The year began with the Trustees continuing to pursue their charity objective of maintaining The Old Kirk for the community but with major uncertainty due to the fluctuations in costs, income and public confidence as a result of the Covid pandemic.
Faith groups who worshipped weekly in the church before Covid, enjoying music and fellowship, both curtailed during Covid restrictions, never returned. However, the Central-Fife Quakers, who had moved into the church from the Downie Lounge in the church halls, to provide more space and ventilation after Covid for their Sunday morning services, were able to enjoy hybrid meetings with the new Zoom facilities there, and stayed on.
Covid still wielded considerable disruptive power: the first week of the new financial year saw the show prepared by Kirkcaldy Gilbert & Sullivan Society to take place in the Old Kirk at the end of the week, cancelled on the Sunday morning of the Dress Rehearsal because of the prevalence of Covid among the Principals. It was mid-September 2022 before “The Yeomen of the Guard” could march out before an Old Kirk audience.
While some events returned, audiences were generally poorer in the evening, and the tendency not to book in advance was marked ; both trends, it seemed, reflected a population who were now uncertain about social structures and events, even to whether buses or trains would run, or they would be fit to go out. This was particularly so for older people, who showed a definite preference for afternoon meetings.
When the Old Kirk Trust and Live Music Now! planned a new series of afternoon concerts by young top-class performers to provide live music for older people in a relaxed informal atmosphere, followed by tea and a cake and chat with the performers, it was hoped to reduce this social isolation after Covid. When a hoped-for 20 people in the audience turned out to be 40 and then doubled again before the end of the series, it was realised this met a real need. The success of “Tea and Tunes” led to requests for more of the same in 2023.
While one of the Ladies’ Probus groups never achieved the same numbers after Covid and left to join forces with another group to seek viability, and the Balwearie High School MVP Project meetings in the Old Kirk were cancelled due to lack of funds, the Old Kirk did experience some new hirers: a Fife College/St. Andrews University/Fife Education initiative to support potential university entrants from a disadvantaged background and develop their potential at an earlier stage, and a series of winter lectures from guest speakers of the Royal Scottish Geographical Society.
Some of the Christmas concerts, cancelled the previous year because of Covid fears, returned, and in the summer, from June to September, volunteers opened the Kirk to visitors, as in previous years This year, however, the tower was out of bounds as a building site.
However, financially, costs soared. Oil for heating doubled in price. Insurance costs increased substantially and electricity costs more than doubled. The Trust had to raise rents but at the same time was mindful that the majority of users are community groups who were struggling to balance their own books with increased costs and fewer tickets sold.
However the biggest single event of this year with major impact on the Trust’s finances was the building restoration element of the Tower Restoration Project. Having worked for 5 years to obtain the necessary reports and permissions, gather funding from 15 different grant bodies, not to mention the generous contributions from members of the public, maintain planning with the professionals online throughout Covid lockdowns, find the additional £30,000 required by the contractor after Covid and secure a starting date, it was immensely significant to the trustees to reach the first week of April 2022 with contractors arriving onsite.
Of course, as with every construction project, there were delays and complications, and additional work required as the 15th century structure was examined more closely from the scaffolding inside and out. The decision was taken to maximise the work required at height, if necessary at the expense of that required lower down which could later be accessed without erecting expensive scaffolding.
It had been intended to appoint a Project Manager who was included in the budget but the difficulties over increased cost cut the time limit for that till it was unrealistic. The Project Management Team of 2 Old Kirk Trustees with the Q.S. and Principal Architect were led by the Architect Paul Higginson.
Cashflow became problematic by the end of the summer 2022 as the sums involved in contractors’ bills and architect’s fees were well above the normal level of cash held by the Old Kirk, with a delay in time before their reimbursement was drawn down from a dozen different funders. By the beginning of December this was compounded by necessary additional works e.g. replacement of the large tower windows, extra steel beams to support the roof as failsafe. The National Lottery Heritage Fund stepped in with an extra £24,300 approved to ensure its completion.
To celebrate the end of the tower work by contractors, carol-singing from the top of the tower was organised for Christmas week
Elements of the Tower Restoration Project remain to be completed. The cameras have to be mounted on the top of the tower and the monitors installed below for those unable to climb to the top to enjoy the panoramic views. The doors have still to be stripped and revarnished. The excellent digital representation of the Old Kirk and Kirkcaldy in 1500 created by the University of St. Andrews has still to be mounted for tourists on the ground floor of the tower. Digital workshops have to be arranged for local schools and the College. A national stained glass conference has to be arranged. A pair of harpsichords have to be restored.
These items are to be addressed next year, when hopefully the climate for events is more relaxed.
Also carried forward to the next year is the plasterwork repair and painting of the ceiling where slipped slates caused water ingress. As there was also a leak from the tower parapet, this restoration work was delayed until the tower work was completed and the leak was stopped. However, this was too late to allow for closing the Kirk completely for 2 weeks in December or Spring 2023.
A small start was made to another project awaiting attention: the archives held in the Kirk shared with the Kirkcaldy Civic Society. These are largely from the estate of the late Ann Watters, much-respected Chair of the Civic Society for many years and a founder trustee of Kirkcaldy Old Kirk Trust. A grant was offered by TownsWeb Archiving and with a contribution from Kirkcaldy Civic Society and a Culture Grant from Fife Council, Ann Watters’ slides were digitised. It is hoped in future to do some more of this large task.
Nevertheless, despite all the financial headaches, delays and work still to be done, the Tower Restoration of the Old Kirk is a major piece of work achieved in pursuit of the Trust’s aims and objectives and Trustees can be proud of this legacy to the Lang Toun community.
Responsibility of the organisation's finance rests ultimately and collectively with the Board of Trustees/Directors. Day to day responsibility for managing the organisation's finances is delegates to the Treasurer of the Board.
At the end of each financial period, the Charity's accounts are subject to external scrutiny in accordance with statutory requirements. Annual accounts are presented at the AGM for the examination and approval of members.
At the end of 2023, the charity made a deficit of £32,808 (2022 - surplus £66,592). The Unrestricted funds balance totalled a surplus of £47,444 (2022 - £25,168) and the Restricted funds balance totalled a surplus of £28,416 (2022 - £83,500).
Reserves are needed to bridge the gap between the spending and receiving of income and to cover unplanned emergency repairs and other expenditure. However, the ongoing running expenses of the Trust are negligible. It has not been possible to formulate a reserves policy given the extensive programme of renovation works in hand. This will be kept under an annual review.
In view of the buoyant income and low running costs the Trustees are of the view that the Trust is a going concern.
Uncertainty in business planning in the present situation makes it more difficult to predict in greater detail how next year will be but it is the intention of the Old Kirk Trustees to continue to maintain Kirkcaldy Old Kirk for the community.
The Trust is a company limited by guarantee with charitable status. It was incorporated on 18 October 2010 and began trading on 25 March 2011. The charitable company is governed by the Memorandum & Articles of Association dated 18 October 2010. In the event of the company being wound up, members are required to contribute an amount not exceeding £1.
The membership of the Charity is 20, with a membership of the Friends of the Old Kirk totalling 102 individuals and 4 groups.
Members of the Board serve as trustees of the Charity and directors of the company. The Board consists of three of more members, to a maximum of fifteen, who are elected and /or confirmed in office by members at the Annual General Meeting. They serve for a period of three years, after which they are eligible for re-election. Office bearers are elected by the Board from amongst their members.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
C R Potter ( Chairperson)
D J MacDonald
M Davie
R C Nairne
G Proudfoot
H Weierter (Resigned 21 October 2022)
K Brown
Acting Secretary :
C R Potter
Registered Office :
12 Hendry Road
Kirkcaldy
KY2 5JJ
Bankers :
Royal Bank of Scotland
23 Rosslyn Street
Kirkcaldy
Independent Examiner :
Fiona Haro CA
3 Castle Court
Carnegie Campus
Dunfermline
KY11 8PB
Solicitor :
Fords Daly Legal
1 Begg Road
Kirkcaldy
KY2 6HD
Details of method of recruitment and appointment of trustees.
The Trustees are elected at the AGM by the members. They consist of at least three and not more than fifteen individuals, all of whom must be over 16 years of age and either a member or have been nominated for election/appointment as a Trustee by a member which is a corporate body. One third (or the number nearest one third) of the Trustees must retire at each AGM, those longest in office retiring first and the choice between any of equal service being made by drawing lots. If the members at the meeting at which a Trustee retires by rotation do not fill the vacancy, the retiring Trustee shall, if willing to act, be deemed to have been reappointed unless at the meeting it is resolved not to fill the vacancy or unless a resolution for the appointment of the Trustee is put to the meeting and lost.
The trustees, who are also the directors of Kirkcaldy Old Kirk Trust for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Trust and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Trust will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Trust and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Companies Act 2006. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees' report was approved by the Board of Trustees.
I report on the financial statements of the Trust for the year ended 31 March 2023, which are set out on pages 7 to 19.
The Trust’s trustees, who are also the directors of Kirkcaldy Old Kirk Trust for the purposes of company law, are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investments (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the 2006 Accounts Regulations does not apply. It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Act and to state whether particular matters have come to my attention.
My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeks explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the financial statements.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Kirkcaldy Old Kirk Trust is a private company limited by guarantee incorporated in Scotland. The registered office is 12 Hendry Road, Kirkcaldy, Fife, KY2 5JJ.
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association , the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The Trust has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the Trust. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the Trust has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Tangible Fixed Assets are capitalised if they have a value greater than £200.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
At each reporting end date, the Trust reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The Trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Trust's balance sheet when the Trust becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the Trust’s contractual obligations expire or are discharged or cancelled.
The Charity is not liable to income or capital gains tax on its charitable activities. Irrecoverable VAT is included in the asset cost or expenses to which it related.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the Trust is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
DCMS VAT Reclaim
Insurance reclaim
Insurance
Heat and Light
Repairs
Dues and Subscriptions
Bank Charges
Tower Restoration
Cleaning and Sundry Expenses
Stationery and Software
Bank Charges
Telephone and Broadband
The charity initially identifies the costs of its support functions. It then identifies those costs which relate to the governance function. Having identified its governance costs, the remaining support costs are apportioned between the key charitable activities undertaken (see note 6) in the year.
Support Costs are apportioned on a direct basis.
None of the trustees (or any persons connected with them) received any remuneration or benefits from the Trust during the year.
The property cost is unchanged since its acquisition in 2011.
Celebrate Lottery Grant : a Lottery -funded grant to celebrate Kirkcaldy Old Kirk’s heritage of service at the centre of the community for almost 1,000 years, and still continuing today, as part of Scotland’s Year of History, Heritage and Archaeology.
The Grant for the Path was awarded to the Old Kirk Trust by community voting,to restore and maintain the path to the Kirk doors.
Climate Challenge Fund grant was given for various activities to reduce carbon and improve sustainability. In particular, improving energy efficiency by insulation works, draughtproofing and a contribution to the repair of the broken Burne-Jones windows was funded.
The Grant for Roof Repairs has been used up over the course of the year if any was left from the original repairs.
Adapt & Thrive – Scottish Government grant focused on making post-Covid changes to an organisation so it can recover and adapt for the future. In our case focused on upgrading AV equipment to allow live-streaming and the creation of 2 part-time posts to make best use of the equipment – a part-time technician for a year and a part-time events manager for a year.
For Tower Restoration Delivery Phase (Phase 2):
Local Community Planning Budget (LCPB): managed by Kirkcaldy Area Locality Manager as allocated by Kirkcaldy Area Committee
Allchurches Trust: charitable trust of Ecclesiastical Insurance
Dalrymple Donaldson Fund gave £5,000 towards the stained glass window restoration and/or the tower restoration. it was not required for the first, and is carried forward for the Tower Restoration Project Delivery funding.
Grant for Paint was donated by Tesco for painting the doors and is being held for that in the Tower Restoration Delivery Project.
Kirkcaldy Common Good Fund - administered by Fife Council through Kirkcaldy Area Committee
National Lottery Heritage Fund approved a First Round Pass to the Tower Restoration Project developing the plans and preparations for bringing the project to site.
DCMS Listed Places of Worship Grant - reclamation of VAT on building project and associated expenses for churches listed by Historic Environment Scotland
Historic Environment Scotland - approved for building fabric restoration
National Churches Trust - support the restoration of the church tower and continuation of the church as an active centre
Garfield Weston - contribution to the Tower Restoration Project to maintain the listed building and it's activities.
Fife Environment Trust - funding community improvement projects and listed historic buildings
Arnold Clark - contribution to local and community projects in the area
Culture Grant - assist with creation of archive of local history material in the form of digitised slides belonging to the late Ann Watters
For Coronavirus Support during lockdown:
Third Sector Resilience Fund per Corra Foundation: for PPE, cleaner's fees, insurance payments, broadband etc
Heritage Emergency Fund from National Lottery: for PPE, screens, card reader, insurance payments.
These are unrestricted funds which are material to the Trust's activities made up as follows:
Incoming resources
Resources expended
Incoming resources
Resources expended
During the year, Rosemary Potter, Chairperson provided a loan of £35,424. This was partly repaid in the year, leaving a balance due of £20,000 still to be repaid.