Introduction
We produce our accounts to comply with the Statement of Recommended Practice for Charity Accounts (SORP 2019).
It should be noted that this report and accounts covers the year ended 31 December 2024.
Total receipts in this accounting period were £965,499 (£891,357 in 2023), and total expenditure was £1,019,379 (£931,443 in 2023), resulting in a deficit of £53,880. This deficit includes depreciation of £110,595, accrued grant expenditure of £21,000, and accrued grant income of £41,531. If depreciation and accrued grants are disregarded, the accounts would show an operating surplus of £36,184.
In some ways, the year 2024 has been one of change, with two of our Pastors, Andy Paterson and Ashley Gardner, moving on to new challenges – Andy as Senior Pastor at Ambassador International Church, Hong Kong, and Ashley as Associate Pastor at City Gates Church, Norwich. They – and their families - have both been missed, but we have been blessed with the appointment of Ray Burbank as an Associate Pastor. Ray has been studying in Edinburgh for a few years, and he, his wife and his family have been part of the Charlotte Chapel scene during their time here. Ray has been an Elder since May 2022. In addition, Peter Wilson has been appointed to a new role as Ministry Operations Director, with a view to liaising between the Pastoral Staff and the various Ministries.
The Elders and Finance Team continue to meet “in person”, with the Deacons still meeting virtually. We continue to monitor our processes to ensure the reliability of the information produced and the confidentiality which is essential, particularly in relation to Donations.
Going Concern statement
Our financial position remains strong, and the generous giving of our congregation has continued, so we remain confident that we are able to continue as a going concern, and to deliver on our Charitable objectives.
Review of General Fund – Note 18
The offerings received by way of donations and Gift Aid in 2024 were £740,435 (2023: £752,489).
The overall income received into the General funds during 2024 was £814,865 (2023: £787,150).
Total expenditure in 2024 was £776,950 (2023: £726,219). As in previous years by far the greatest outlay of £369,379 related to salaries (2023: £346,998). For 2024 this equated to 48% of general fund expenditure. The next greatest outlay of £173,123 related to Cross Cultural Worker support (2023: £140,003). For 2024 this equated to 22% of expenditure.
General Reserves - Note 18
The General Reserve, which is the unrestricted funds excluding designated funds, closed 2024 with a balance of £269,595 (2023: £294,345). The sum of £62,665 was transferred from the General Reserves. This was to establish two new Designated Funds - £50,000 to a Designated Building Fund for any future repairs to the Church premises, and £7,500 to the Church Planting Designated Fund. An additional £5,165 was transferred to cover improvements to one of the Manses.
We have always felt it prudent to retain at least three months of the normal General Fund expenditure in reserve. Applying that test would mean we should retain not less than £194,237 in reserve at the end of the financial period.
Restricted funds – Note 17
We have several restricted funds which are for specified purposes. Money held within these funds cannot be repurposed.
Restricted fund descriptions and their purposes are detailed in Note 17.
Restricted fund balances are detailed in Note 17.
Funding commitments – Note 21
The elders committed to providing financial support to Christ Church Queensferry (CCQ) over a period of four years, as follows:-
£5,000 per year for 4 years starting January 2022 from the Greta Arthur Fund.
£10,000 per year for 4 years starting December 2022 from General Reserves.
(The final payments of £5,000 and £10,000 are due to be paid to CCQ in December 2025).
The commitment to Hope Church Aviemore of £4,000 per year over five years, ended when the final payment was made in January 2025. These payments were made from the Greta Arthur Fund.
The commitment to Bethany Christian Trust will be one final payment in 2025 to support the "Bridge to Freedom" programme, made from the general reserves.
Mission
Our Cross-cultural Workers Team Head of Resources (Anna Pagan) together with her finance sub-team is responsible for managing the CWT budget line item within the General Budget used to disperse money to the Cross-cultural Workers, their families, and organisations we support.
Risk Assessment and Mitigation
These are commented on in the Report of the Elders. To reduce potential financial exposure, £275,000 held within the Chapel’s bank accounts is covered by the government’s Financial Services Compensation Scheme (FSCS) with the opening of a Savings account with Kingdom Bank in January 2025, in addition to the existing Savings accounts with Bank of Scotland, The Royal Bank of Scotland and Cambridge & Counties Bank. We will make arrangements to move another £25,000 to obtain the maximum protection of £300,000 from these four accounts. With the FSCS protection expected to increase to £110,000 with effect from 1st December 2025, we will look then at moving funds around as appropriate.
2024 Summary
As we sign off on this set of accounts for the incorporated charity that is Charlotte Baptist Chapel Limited, we continue to be extremely thankful for the faithfulness of our God Who we seek to serve by making the Gospel of His Grace known in Edinburgh – and throughout the world through our Cross Cultural Workers.
After our move to Shandwick Place which saw truly exceptional levels of giving, by the end of 2017 regular giving was approximately 20% less than required to meet the anticipated expenditure.
In 2018 we embarked on the “Giving for Gospel Growth” initiative with the anticipation that with God’s grace our income would increase to the required level. We are so thankful to God that we achieved and surpassed the 20% increase set in faith by the Elders.
During 2019 the increase in giving from 2018 was sustained, which meant our budget was fully funded. There were, however, several additional expenditures required to modify the church’s heating system, undertake additional building repairs, and pay for the removal of the church bells with their support structure, resulting in a £25,000 reduction in our reserves.
With the advent of COVID-19 in 2020, our expenditure reduced to an abnormally low level, and while our income also decreased, a healthy surplus was added to our General Reserves at the end of that year.
COVID-19 continued to affect our operations during 2021. However, regular giving increased, and expenditure was lower than budget resulting in another healthy surplus being added to our General Reserves.
2022 was a more normal year. Giving remained at 2021 levels though and expenditure was 5% lower than budget by the end of the year. When the 2022 budget was approved, it was with the understanding that our regular income needed to increase by 5%. That not being the case, there was a small deficit of £10,261 for 2022 before depreciation.
To enable our Vision to see lives transformed through Jesus to the Glory of God, an ambitious Budget was set for 2023, requiring an uplift of almost 13% in Giving. The members voted in favour of this challenging Budget, and we are grateful for the generosity of our membership in delivering. With expenditure coming in below Budget, we had a satisfactory year, for which we are thankful to our generous God and the Prayerful support of His people. Given the very steep increase in costs for the population in general, this was a remarkable achievement!
For 2024, the approved budget was 8.23% higher than in 2023, which required an increase in giving of 4.8% to fully fund. However, giving actually reduced by just over 1%, and with increased expenditure – mainly due to higher salaries and mission-related costs – we have ended with net expenditure of £48,362 in unrestricted funds, after depreciation.
Giving and Gift Aid
Giving, and what to give, is very much a personal decision, but members have a responsibility to support the Church financially, and there is clear guidance in the Scriptures as to how that should be done. Every member ought to give in relation to the gratitude they feel towards God for the way in which He has, in his great kindness, blessed them. As a Church, we believe that “every good and perfect gift is from above”, ie from God, and most importantly, He gave His Son to die a sinner’s death so that we could have a personal relationship with Him.
As we read in 2 Corinthians, "Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver”. As well as giving cheerfully and generously, we ought also to review our giving at least annually. The Church benefits greatly from the Gift Aid Scheme operated by HMRC in terms of which any taxpayer is entitled to authorise the Church to reclaim tax paid by the taxpayer to the extent of tax paid.
Anyone who requires more information on Gift Aid, or on giving in general, should speak to the Treasurer.
Thanks and Recognition
As I consider my second Treasurer’s Report, I continue to be in awe of God’s faithfulness in providing for our every need through His people’s generous giving. I am also constantly grateful to the Church Leadership and members for their unstinting support and encouragement.
I would again pay tribute to every member of the Church Finance Team who, although largely unseen, carry out their duties with selfless devotion to the tasks entrusted to them; without doubt, they are the unsung heroes, and I know that their commitment to their various spheres of service, comes from servant hearts which is in turn, an indication of their immense gratitude for all that God has done for them. From the Counters who manage donations made through the Offering Boxes, to the Budget Holders who manage the Budgets of individual Ministries within the Church responsibly and, meticulously, to the members of the “Senior” Team who manage individual areas of responsibility, as well as coming to my rescue on a regular basis, I offer my sincere gratitude. Without them and their support, the Chapel’s finances would not be in such robust good health. Of course, each of us shares the ambition of our Leaders and Members – to see lives transformed through Jesus to the glory of God – and that is why we do what we do!
The role of Treasurer at Charlotte Chapel is far too big for one person on their own, and although I may be the face and voice of Finance at our Church, there are many unsung and largely unseen heroes who are committed to and faithful in the responsibilities they have committed to in Service of their Lord. I as Treasurer, and we as Church members, owe them a huge debt of gratitude.
As we look ahead, we are confident that the God Who has proved His faithfulness in the past, will continue to bless us in the future. I finish this report, as I did last year, with these wonderful words of assurance:-
“The steadfast Love of the Lord never ceases; His mercies never come to an end; they are new every morning; great is His faithfulness.” Lamentations 3 vs 22 & 23.
The elders present their annual report and financial statements for the year ended 31 December 2024.
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 charity's governing document, the Companies Act 2006 the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 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)".
The Chapel’s objects are the advancement of the Christian faith primarily in Edinburgh and also throughout Scotland and the rest of the world by all means consistent with the teachings of the Christian Bible including worship, preaching, ministry, mission, prayer, witness, education, community service and the support of agencies and individuals and other charitable organisations involved in Christian missionary work, Bible translation, the relief of poverty or other social needs.
Our vision as a church is to see lives transformed through Jesus to the glory of God.
Our mission is to glorify God by making disciples of all nations. Disciples of Jesus who Love God, grow in Christ-likeness, serve Christ and go to make disciples who love, grow, serve and go.
For accounting purposes, the activities have been stated as:
“Worship, Ministry, Prayer and Witness and Support of Missionaries and Other Organisations.”
We desire to reach out with the gospel; build people up with the gospel; and send people out with the gospel of Jesus Christ.
With a membership of around 560, plus several hundred adherents and visitors to our Sunday services, Charlotte Chapel provides a comprehensive programme of support and activities to people of all ages, for example; for children and young people, served by in excess of 150 volunteers, for new mothers by the provision of meals for their first week after coming home from hospital, for older housebound members by regular visits from pastoral team members and teams of volunteers.
Around a quarter of our voluntary income through offerings and donations is given for the needs of people overseas through the various missionaries that we support, and through care and development agencies in response to natural disasters and famine relief.
Significant events and developments of note in the year include:
In 2024 we hosted the third Pillar International Conference welcoming over 170 pastors from a wide range of countries including Sweden, Germany, Kenya Cambodia and USA. We continued in training people for pastoral ministry including David Scott who joined Ben Macdonald, Callum Cruickshank and Pierre-Yves Koenig as a pastor in training. David’s goal is to assist the revitalisation of Bo’ness Baptist Church. Thomas Dubberley and Nathan Biddulph joined the ministry apprenticeship program.
Andy Paterson left the staff team to become the pastor of Ambassadors International Church, Hong Kong.
Ashley Gardner left to become the associate pastor of City Gates Church, Norwich.
We appointed Ray Burbank to be the Pastor for Discipleship and Care of Men. Peter Wilson joined the staff team in the new position of Ministry Operations Director.
As a congregation we voted to adopt the recently revised doctrinal statement of the Fellowship of Independent Evangelical Churches as our church doctrinal statement.
New members: 52
Baptisms: 15
Members who left: 59 (7 deceased)
Membership numbers in December 2024: 559
The Elders regularly review the consequences of any operational and financial changes imposed upon the Chapel. Specifically, with regards to the Chapel’s ability to continue as a going concern and to execute its charitable purposes. With documented mitigations implemented, the elders consider that there are no material uncertainties about the charities ability to either continue as a going concern or prevent the charity from executing its charitable purposes. These operational changes and mitigations are documented within the Treasurers report section.
It is the policy of the Chapel to maintain unrestricted funds i.e. funds not committed or invested in fixed assets, at a level which equates to approximately three months operating costs. This allows sufficient funds to enable the ongoing work of the Chapel to be maintained. The total of Unrestricted Funds held excluding fixed assets and designated funds amounted to £263,059 (£289,262 in 2023) and was, therefore, above the required level.
The Chapel receives its funding from members and those in the fellowship by way of regular offerings, standing orders, many of which are gift aided, and from general donations.
Occasionally we receive legacies. 2024: £57,008 (2023: £20,654).
There is no investment income other than bank interest. Details of designated funds appear in the notes to the accounts.
The Chapel makes grants from its donated income to beneficiaries and organisations that are generally known to the Elders and the Chapel. The beneficiaries are involved in activities or ministries compatible with the Chapel’s objectives. During the year we donated £249,669 (£197,022 in 2023). Additionally, funding of £21,000 (£38,000 in 2023) has been committed and recognised during the year.
For 2025 we will continue to share the good news of Jesus Christ both through our Sunday church gatherings and a new course called LIFE. We will be seeking to strengthen partnerships with other churches through the East of Scotland Gospel Partnership, the Fellowship of Independent Evangelical Churches and the Pillar Network. We will be hosting events and conferences in our building for these groups. In November we will be conducting elections for a new group of elders that will lead the congregation forward for the next five years.
The charity is a company limited by guarantee (SC422575), is recognised by HM Revenue & Customs as a charity (ST02861) and is registered with the Office of the Scottish Charity Regulator (SC048212). The company was incorporated on 24 April 2012. The company was granted charitable status on 16 March 2018 and on 1 May 2018 the net assets of the unincorporated Charlotte Baptist Chapel (Charity registration number SC011655) were transferred to Charlotte Baptist Chapel Limited and the chapel now operates under the Limited company.
The company was established under a Memorandum of Association, which established the objects and powers of the charitable company and is governed under its Articles of Association.
The Elders, who are the Directors of the company limited by guarantee for the purposes of the Companies Act 2006 and Trustees of the Chapel for the purposes of the Charities and Trustees Investment (Scotland) Act 2005, are responsible for directing the Chapel and for its management and its day to day running.
The non staff Elders are responsible for setting the pay and remuneration of all staff, including the Charity's key management personnel. They are also responsible for awarding annual salary increases.
The church members consist of those who have applied for membership, and who, after interview, have satisfied the interviewing Elders as to their suitability for membership. They are then recognised and received into membership by the Congregation.
Ultimate responsibility for the governance of the Chapel rests with the church membership in Congregational Meeting.
The elders, 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:
The Chapel is self-governing and congregational in policy and its day-to-day running is undertaken by the Elders. The Chapel is independent, there is no relevant connected body however the Chapel is a member of the following organisations:
Fellowship of Independent Evangelical Churches (FIEC).
Evangelical Alliance (EA).
The Pillar Network of International Baptist Churches.
Elders are democratically elected every five years on the vote of the members of the Congregation over 18 years of age. The Deacons are appointed by the Elders following nomination by the members. The Deacons each have an area of responsibility, under the authority of the Elders, and are responsible for the day to day activities of that area. During the year the following were the diaconate responsibilities:
Role Deacon
Catering Andrea Doggart
Communications Kathryn Garvie
Finance Trevor Brailey
Finance Bill Anderson
IT Richard Booth
Property Steve Paterson
Staffing Roger Pagan
Welcome Russell Newton
All Elders have served the Chapel for some time in various roles and are familiar with the Chapel’s values, its aims and objectives, constitution and financial situation as well as its day-to-day operations.
The Deacons have conducted a review of the major risk factors to which the Chapel is exposed, including Health and Safety. Analysis of the risks involved is discussed by the Deacons on a rolling basis at their quarterly meetings. The Elders are satisfied that the systems currently in place mitigate any exposure to the major risks.
The Elders meet at least monthly with the Senior and Associate Pastors. The agenda includes items relating to day-to-day activities and pastoral care of those within the fellowship.
Business meetings for Chapel members are convened half yearly (one of which is the Annual General Meeting) and include statements of the Chapel finances, consultation about the work of the Chapel and policy and business remitted from the Elders. Further meetings may be held for members if required.
Additional informal meetings, which are open to all individuals attending the Chapel, are held for sharing and information.
The elders, who are also the directors of Charlotte Baptist Chapel Limited for the purpose of company law, are responsible for preparing the Elders' 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 elders 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, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the elders 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;
- state whether applicable UK 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 elders are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In accordance with the company's articles, a resolution proposing that Johnston Smillie Ltd be reappointed as auditor of the company will be put at a General Meeting.
The elders' report was approved by the Board of Elders.
Opinion
We have audited the financial statements of Charlotte Baptist Chapel Limited (the ‘charity’) for the year ended 31 December 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor'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 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.
In auditing the financial statements, we have concluded that the elders' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the elders with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the Treasurer's report and the Elders' report other than the financial statements and our auditor's report thereon. The elders are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the elders' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and
the directors' report included within the elders' report has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the elders' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:
proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the elders were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the elders' report and from the requirement to prepare a strategic report.
As explained more fully in the statement of elders' responsibilities, the elders, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the elders 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 elders 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 elders either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.
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.
We obtained an understanding of the legal and regulatory frameworks applicable to the charitable company, focusing on provisions of those laws and regulations which could have a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and charity SORP.
We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including how fraud might occur, by considering our knowledge of the company and the sector in which it operates and by discussion with staff and those charged with governance. We considered the procedures and controls that are in place to address risks identified, or that otherwise prevent, deter and detect fraud.
Based on this understanding we designed our audit procedures to detect circumstances in which irregularities could result in material misstatement and to identify irregularities which may have occurred. Our procedures included: journal entry testing; enquiries of staff and those charged with governance; review of Board minutes; review of specific transactions and documentation; analytical procedures; and review of the presentation and disclosures in the financial statements.
We communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non compliance with laws and regulations throughout the audit.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company’s trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company, the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 16 to 31 form part of these financial statements.
Charlotte Baptist Chapel Limited is a private company limited by guarantee incorporated in Scotland. The registered office is 43 Queensferry Street Lane, Edinburgh, EH2 4PF.
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 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)". The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charity. 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 elders have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the elders 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 elders in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors 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 charity 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.
In the opinion of the Trustees, there is only one charitable activity, and therefore all costs, including support costs, are directly attributable to this activity.
Irrecoverable VAT is charged as a cost and included in the total costs of the charity's single activity
Tangible fixed assets are initially measured at cost and subsequently measured at cost, 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 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.
The charity’s policy is to capitalise all fixed assets with a value greater than £2,000.
Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.
The charity 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 charity's balance sheet when the charity 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 charity’s contractual obligations expire or are discharged or cancelled.
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 charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
In the application of the charity’s accounting policies, the elders are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Tangible fixed assets are depreciated over their estimated useful lives, considering residual values where applicable. The useful lives are determined based on the period during which management expects to receive future economic benefits.
The land and buildings are stated at cost.
Total grant expenditure in the period for the support of Missionaries and other organisations was £249,669 (2023: £197,023). Grants have been made in the period to 29 individuals (2023: 26), totalling £167,232 (2023: £155,512). Grants to institutions were £82,437 (2023: £41,511) in total. The grants were applied to the charitable activities as shown in note 6.
During the reporting period the charity also made commitments to provide grants as detailed in note 21.
Grants exceeding £200 made to other organisations in the period are noted above.
The average monthly number of employees during the year was:
The total employment benefits including employer pension contributions of the key management personnel were £134,779 (2023: £160,658). The Charity considers its key management personnel comprise the Elders, none of whom receive remuneration for the post of Elder.
Pensions Costs
The Charity operates a defined contribution scheme. The assets of the scheme are held separately from those of the Charity in an independently administered fund. The pension cost payable by the Charity to the fund amounted to £18,152 (2023: £18,216).
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
Greta Arthur Fund: This fund is managed at the discretion of the elders and represents a legacy received “to be used for the furtherance of youth work; and to aid missionary work organised through the Chapel.”
Shandwick Place Fund: This fund and its associated designated fund holds the assets for the purchase and subsequent refurbishment of the building at Shandwick Place.
Alastair Hay Memorial Fund: This fund represents a legacy received “To Charlotte Baptist Chapel, Edinburgh, for its Mission Fund”. This has been interpreted and agreed by the elders to mean “for use by the CWT (Cross-cultural Workers Team formerly named the Global Missions Ministry) at Charlotte Chapel”.
Mission Legacy: This fund represents any other legacies received for the purpose of “Cross-cultural Mission”.
Local Mission Legacy: This fund represents any legacies received for the purpose of "Local Mission".
Mission Specified Gifts: This is the income and expenditure fund used to facilitate specified gifts for individuals who are formally supported in their ministry by the Chapel.
Specified Gifts and Grants: This fund is used to hold any grants, lower value legacies or specified gifts received, other than for the purpose of "Mission".
Christ Church Queensferry: This fund and its associated designated fund represent donations and expenditure relating to the Christ Church Queensferry church plant.
Ministry Training: This is the income and expenditure fund used to facilitate training in the Ministry.
Bo'ness Baptist Church Initiative: This fund is used to hold grants or specified gifts received for the Bo'ness Baptist Church Revitalisation Project.
Pastors in Training: This fund represents legacies, grants or specified gifts for Pastors in Training expenses and salaries.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
General Funds: This fund is the main income and expenditure fund for the day to day running of the Chapel.
Fellowship: This fund is financed by specified donations. It is used to help needy members of the congregation and awards are made at the discretion of the Senior Pastor, as and when the need arises.
Special Offerings: For the purpose of these accounts, the Thank Offering Fund and Christmas Day Offering Fund have been presented together under the heading Special Offerings. These remain separate designated funds internally.
Thank Offering Fund: Financed from the annual Thank Offering on Chapel Anniversary Sunday. Its purpose is communicated each year and the fund remains open throughout the year.
Christmas Day Offering Fund: Financed from the offering collected at the Christmas Day service. Its purpose is announced in advance.
Ministry Training Fund: This relates to income received to fund the Ministry Training Program.
Care Ministry: For the purpose of these accounts, the Women’s Morning Fellowship and Men’s Fellowship funds have been presented together under the heading Care Ministry. These remain separate designated funds internally.
Women’s Morning Fellowship: This fund records the income and expenditure related to the Women’s Morning Fellowship ministry.
Men’s Fellowship: This fund records the income and expenditure related to the Men’s Fellowship ministry.
Children, Youth and Students: For the purpose of these accounts, the International Fellowship, Football Ministry, and Children & Youth funds have been presented together under the heading Children, Youth and Students. These remain separate designated funds internally.
Children & Youth Fund: Income and expenditure relating to the Children & Youth ministry.
International Fellowship: Income and expenditure relating to the International Fellowship ministry.
Football Ministry: Income and expenditure for football-related events within the ministry.
Literature: This fund is the income and expenditure fund for the running of the Literature/Bookstall Ministry.
Freehold Property: For the purpose of these accounts, the Shandwick Place and Manse funds have been presented together under the heading Freehold Property. These remain separate designated funds internally.
Shandwick Place Fund: Holds the assets for the purchase and refurbishment of the Shandwick Place building, along with its associated restricted fund.
Manse Fund: Holds the assets and fixtures relating to the two Manses.
CAMEO: This fund is the income and expenditure fund for the running of the CAMEO Ministry.
Other: For the purpose of these accounts, the Church Planting Fund and CCQ fund have been presented together under the heading Other. These remain separate designated funds internally.
Church Planting Fund: Income and expenditure designated specifically to facilitate church planting initiatives.
CCQ Fund: Represents donations and expenditure (including an associated restricted fund) related to the Christ Church Queensferry church plant.
Transfers are made between funds when appropriate.
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The Elders received neither remuneration nor expenses in their position as Trustees in either 2024 or 2023.
During the year the charity entered into the following transactions with related parties:
1. Five members of the Pastoral Staff Team also held office as Elders of the Chapel (2023: 4). The remuneration costs for these individuals in their Pastoral Staff roles were: Paul Rees £55,518 (2023: £52,081), Liam Garvie £36,238 (2023: £33,664), Andrew Paterson £5,901 (2023: £28,020), Ashley Gardner £10,817 (2023: £34,860) and Ray Burbank £16,545 (2023: £nil). Related pension costs were: Paul Rees £4,441 (2023: £4,217), Liam Garvie £2,899 (2023: £2,726), Andrew Paterson £472 (2023: £2,269), Ashley Gardner £1,000 (2023: £2,822) and Ray Burbank £1,059 (2023: £nil).
2. Salary payments and employer pension contributions were made to Catherine Burrows, who is the wife of Mark Burrows, an Elder of the Chapel. The total salary paid was £16,450 (2023: £15,126) and the employer pension contributions amounted to £1,316 (2023: £1,210). Rebecca Watson, the daughter of Graeme Watson, an Elder, received £2,266 in disbursements during the year. These funds were provided by church members to support her self-funded internship at a church in South Carolina. No other disbursements were made to individuals who were related parties of the Elders of the Chapel (2023: £Nil).
3. During the year a total of £95,132 (2023: £80,844), including gift aid was donated to the Chapel by Elders.
4. An interest-free loan of £6,200 was provided to Liam Garvie in 2021, with the balance at 1 January 2024 being £1,040. £1,040 was repaid towards the loan during 2024 leaving an outstanding balance of £nil. During the year, an interest-free loan of £9,990 was provided to Ray Burbank, £556 was repaid towards the loan leaving an outstanding balance of £9,434.