MINUTES OF THE 73rd STATED ANNUAL MEETING OF
FAIRMILEHEAD PARISH CHURCH HELD ON
SUNDAY 20 MARCH 2016 at 11.50am IN THE CHURCH
- CONSTITUTION
The meeting was constituted with a welcome from the Minister, Rev John Munro and a prayer.
- SEDERUNT
Forty one members were present and eleven apologies had been received.
- MINUTES OF THE 72nd STATED ANNUAL MEETING.
These were proposed by Chris Thompson, seconded by Douglas Pearson and approved by those present.
- MATTERS ARISING
There were no matters arising.
- FINANCIAL REPORT
The Treasurer, by means PowerPoint presented the 2015 Trustees Annual Report and Accounts. (See Appendix A - Extracts from the Trustees Annual Report and Accounts).
He thanked the members of the Finance Committee for their guidance and the devolved tasks of gift aid and hall income, and to the new Independent Examiner, Anne Dobson.
There were no questions and the Minister thanked the Treasurer.
- GIFT AID REPORT
The Gift Aid Convener reported that there are 278 Gift Aid forms on record but not all of these are matched by a donation or have made one off donations to the Youth Development in 2014.
In 2015, £24,167.90 was recovered from HMRC on behalf of members who have Gift Aid forms and £1250 was recovered from the Open Plate donations under the Gift Aid Small Donations Scheme. From April 2016 the amount to be claimed will increase to £2000, if £8000 is collected in the financial year 2016-17.
The Treasurer said that we are doing reasonably well financially, but there are difficulties. There are areas of concern which are:-
a)There are 545 members on the Roll but there are only 229 donations to Church funds. 24 of these donors do not pay tax and gift aid cannot be claimed on their behalf.
b)These 545 members come from 513 households, in 8 of these households both members contribute. The % of households who contribute is 43.9%.
c)The total donations for last year were £91,813.18. (This excludes members who have died or stopped contributing.) This means that each donor is giving, on average, £7.71 per week.
d)The table below shows a more detailed breakdown of the giving.
Contribution per week / <£5 / £5.01-£10 / £10.01-£15 / £15.01-£20 / >£20 / TotalsContributors / 99 / 77 / 27 / 11 / 15 / 229.00
Annual donations / £14,901.17 / £30,482.00 / £16,750.01 / £9,940.00 / £19,740.00 / £91,813.18
% contributed / 16.23 / 33.20 / 18.24 / 10.83 / 21.50 / 100.00
% members giving / 43.23 / 33.62 / 11.79 / 4.80 / 6.55 / 100.00
e)A large number of members give by means of banker’s order. The difficulty is that members know they are giving regularly but they do not review their giving. (The consumer price index has risen by about 18% since 2008.)
The table below breaks down the years when members have changed their donations.
No change since 2008 / 61 / 26.8
2009 to 2013 / 40 / 17.5
Since 2014 / 68 / 29.8
New entries / 32 / 14.0
Variable amounts (free will envelopes) / 28 / 11.8
There were stewardship approaches to the Congregation in 2012 and 2014 to support the Youth Development Fund.
f)The question is how to get these members to review their giving. The Gift Aid Convener writes annually to all donors at the end of April to thank them so they can do their tax returns. The letter includes a request to update their giving, but nothing happens or at worse some people ceasedonating. Last year 12 donors were lost, either through death or they have ended their standing order.
g)It was noted that the current personal allowance (2015/16) is £10,600. For the tax year 2016/17 it is going up to £11,000 plus tax free allowances of £1,000 on savings and £5,000 on dividends.
Andy Lippok suggested publishing guidelines as to how to increase a banker’s order, either on line or, for those not using internet banking, how to change the forms through the bank. The Gift Aid Convener will publish an article in one of the monthly newsletters.
The Minister thanked the Gift Aid Convener.
- KIRK SESSION – The meeting received a paper (APPENDIX 3), circulated earlier, from the Session Clerk. There were no questions and the Minister thanked the Session Clerk.
- PROPERTY REPORT
The Property Convener reported that the maintenance of the buildings is never ending. The building - both external and internal - deteriorates due to the weather (e.g. the recent repairs to the masonry on the church tower) and general wear and tear. Unfortunately many of the hall users freely abuse the property.
There are four major items of expenditure ahead:-
a)The central heating boilers require to be replaced within the next few years with an estimate of £42k.
b)Some of the church lighting needs to be replaced; it is now unsafe to replace the top lights so the side lights need to be brighter. The spotlights have become obsolete. The cost is at least £20k.
c)The kitchen requires upgrading – new cooker, extractor fan and dishwasher, particularly if a café is established on the premises. It has proved difficult to get quotations from contractors.
d)Redecoration of the halls. Buckstone hasn’t been re-decorated for a while and Frogston, whilst re-decorated not that long ago, is showing signs of wear and tear.
The Property Convener concluded that it is easy to spend money on the premises – greater income is required.
- YOUNG CHURCH REPORT (APPENDIX 4)
This had been circulated and was taken as read.
- ANY OTHER COMPETENT BUSINESS
There were none. The Minister reflected that, when he wrote his book, he was struck by the time and effort put in by many volunteers to make this a successful charity. He recognised that the wear and tear on the halls must be addressed it would be good to do things in advance of problems. He told the meeting that it is likely the Council’s lease of Swanston Hall for the nursery for South Morningside School is likely to close in the autumn of 2019 when the new primary school, off Canaan Lane, is opened.
He thanked those present at the meeting for attending, Stan Marek, Chris Thompson, all the Young Church leaders and the Session Clerk for their work. He also thanked Hugh, the Church Officer and Carole in the office on whom everyone relies, Hayley and to Leigh for his musical gifts.
- CLOSURE
The meeting closed with the Grace
…………………………………………….. Moderator ……………………………………………. Session Clerk
Dated the ……………………….. day of …………………………. 2017
(to be approved at the 2017 Stated Annual Meeting)
APPENDIX 1 (Extracts from the Trustees’ Annual Report)
Fairmilehead Parish Church of Scotland, Edinburgh
Trustees’ Annual Report (continued)
Year ended 31 December 2015
Financial Review
Financially, 2015 has been a particularly good year.
Against a balanced budget, unrestricted ordinary income exceeded unrestricted expenses by £15,992. This surplus was substantially boosted by legacies of £42,000, in turn raising reserves to the equivalent of 8.45 months of forecasted expenditure. Since our accounting policy is to hold reserves equal to 3 months expenditure, the opportunity has been taken to earmark £70,000 for future replacement, renewal and development projects.
Restricted funds have also benefited through continued fund-raising and regular giving as well as one-off donations. As a result, although slightly ahead of raising the full funds, the decision was taken to go ahead with the repairs to the stained-glass windows before further damage resulted.
Unrestricted receipts and payments
Page 10 shows that ordinary income (excluding legacies) exceeded ordinary expenses by £15,992 against a balanced budget.
Members’ offerings are £12,569 above projections and £2,480 up on 2014. Also, hall-letting income (Rent received), at £94,199, is £7,699 above budget and £3,974 more than the previous year (after prior year adjustments). As a separate cost centre, the halls contribute a significant amount to our ministries and mission allocation while still generating a modest surplus.
In apparent contrast, payments are more than £7,000 in excess of both the budget and the 2014 comparison. However, actual payments for the year include an unexpected outlay of £8,520 for repairs to the tower which, if excluded, would show tight control of all other expenditure.
Restricted funds
Overall, the restricted funds decreased by £20,000 largely due to the cost of repairing the stained-glass windows. Following a very generous donation, the decision was taken to go ahead with the repair, even though the target of £17,690 had not been reached. The fund remains open.
As anticipated, the Youth Development & Young Church fund has fallen substantially as expenditure exceeds receipts but the balance from last year’s appeal is sufficient to meet this shortfall and maintain the current level of youth ministry and youth developmentuntilOctober 2016.
Risk Management
The average age of the congregation continues to rise with a potential negative impact on ordinary givings. Accordingly, a 3% provision has been made for such losses which may impact in the next twelve months. The level of members’ donations is continually under review and annual appeals are made to members to regularly review the amount of their giving.
Extensive use of the halls also brings the risk that a fall in the rental take-up could also reduce the incoming resources. The Trustees are aware that there will no longer be a requirement for council nursery provision at Fairmilehead from 2019. The current contract, equivalent to £18,000 per annum, expires in August 2018 and the Church Centre Committee will be charged with considering various options for replacement rents.
With the extensive use of halls, we are continually being faced with high refurbishment costs. Thanks to legacies of £42,000, plus surpluses in recent years, the Trustees have set aside £70,000 in a designated fund for replacement, renewals and development projects.
Fairmilehead Parish Church of Scotland, EdinburghStatement of Financial Activities
Year ended 31 December 2015
Note / Unrestricted
Funds
2015 / Restricted
Funds
2015 / Total
2015 / Total
2014
(re-stated)
Income from: / £ / £ / £ / £
Donations and Legacies / 1 / 148,446 / 30,409 / 178,855 / 151,051
Income from charitable activities / 2 / - / 3,096 / 3,096 / 2,453
Income from other trading activities / 3 / 94,199 / 5,328 / 99,527 / 90,225
Investment income / 4 / 1,464 / 3,158 / 4,622 / 349
Total Income / 244,109 / 41,991 / 286,100 / 244,078
Expenditure on: / 5
Raising funds / 92 / - / 92 / 132
Charitable activities / 183,893 / 57,488 / 241,381 / 204,260
Total Expenditure / 183,985 / 57,488 / 241,473 / 204,392
Net income/(expenditure) before gains and losses on investments / 60,124 / (15,497) / 44,627 / 39,686
Net gains/( losses) on investments / (2,132) / (4,506) / (6,638) / 145
Net movement in funds / 57,992 / (20,003) / 37,989 / 39,831
Reconciliation of funds:
Total funds brought forward / 73,723 / 691,285 / 765,008 / 725,177
Total funds carried forward / 131,715 / 671,282 / 802,997 / 765,008
The accounts have been prepared on the accruals basis following three years of preparation on a receipts and payments basis. This has given rise to a prior period adjustment, further details of which are given in note 17. The cumulative adjustment to closing reserves at 31 December 2014 is an increase of £143,812.
The church has no recognised gains or losses other than the results for the year as set out above.
All of the activities of the church are classed as continuing.
Fairmilehead Parish Church of Scotland, EdinburghStatement of Cash Flows
Year ended 31 December 2015
Total Funds 2015 / Total Funds 2014 (restated)
Note / £ / £
Net cash used in operating activities / 15 / 46,002 / 28,142
Cash flows from investing activities:
Interest and dividends / 4,622 / 349
Purchase of investments / (184,995) / -
Net cash provided by investing activities / (180,373) / 349
Change in cash and cash equivalents in the year / (134,371) / 28,491
Cash and cash equivalents brought forward / 235,792 / 207,301
Cash and cash equivalents carried forward / 101,421 / 235,792
Fairmilehead Parish Church of Scotland, Edinburgh
Balance Sheet
At 31 December 2015
2015 / 2014 (restated)
Note / £ / £ / £ / £
Fixed Assets
Tangible Fixed assets / 8 / 510,900 / 515,654
Investments / 9 / 180,724 / 2,367
691,624 / 518,021
Current Assets
Debtors / 10 / 10,057 / 11,195
Deposits – Church of Scotland / 68,813 / 193,120
Bank and cash / 32,608 / 42,672
111,478 / 246,987
Creditors
Falling due within one year / 11 / 105 / -
Net Current Assets / 111,373 / 246,987
Net Assets / 802,997 / 765,008
Unrestricted Funds / 14
General funds / 61,715 / 73,723
Designated funds / 70,000 / -
131,715 / 73,723
Restricted Funds / 14 / 671,282 / 691,285
Total Funds / 802,997 / 765,008
The accounts were approved by the Kirk Session on 16 March 2016.
APPENDIX 3
SESSION CLERK’S REPORT
Thank you all for attending the congregation’s Stated Annual Meeting and for giving me the opportunity to report on the work of the Kirk Session and some of its plans for the future.
The Kirk Session and its Committees continue to manage the various aspects of the life of our congregation.
Following the two hosting events held in the early part of 2015, it was suggested that there be a café in the halls. A small committee was set up to find out if this is feasible. They have conducted a survey of hall users and members and, following the results of this and research visits to other church cafes, a Pop-up café will start in Caerketton Hall on Wednesday mornings, run by volunteers, from 13 April until 1st June. Once this is done, the outcome will be evaluated and further recommendations made to Session.
In May 2015, the Kirk Session agreed to become a member of Affirmation Scotland. Whilst we declare in our literature ‘All are Welcome’ a sub committee has been set up to create a new mission statement which declares our welcome to everyone whatever their age, mental or physical ability, gender or sexual orientation.
The new venture the ‘Join the Journey’ Bible study has met fortnightly for the past year on a Sunday afternoon and thanks are due to Jim Moffat for organising this. It is hoped to change this to a Thursday evening after Easter.
As required by the Church of Scotland, members of the Kirk Session received some training in the Protection of Vulnerable Groups.
Hayley’s contract with us ends in October 2016. Hayley and her husband Bill are currently looking for new positions in both the UK and the US. She has made a wonderful contribution to the life and work of this congregation. Thanks to the continuing contributions by members to the Youth Development Fund, we are planning to employ a part time Youth and Families worker to continue Hayley’s work with the under 18s and their families.
In the next few months, we plan to organise a light lunch and presentation for those interested in joining the church and invitations will also be sent to those living on the Waterfield Site to attend this. The Session are also organising a hosting event for existing and potential elders.
I would like to thank the church committees and their conveners for the fantastic work they do on behalf of Fairmilehead. In particular I would like to thank Stan, our Treasurer, for all the unseen work he does managing the day to day expenditure, the pay roll and preparing the accounts. On your behalf, it would like to express our sincere thanks to Carole in the office, Hugh our Church Officer, Leigh our Director of Music and to Hayley and John for their leadership.
APPENDIX 4
YOUNG CHURCH REPORT – HELEN GRANT
In the Young Church, we try to encourage and educate all our children. We are not complacent and are always striving to increase our numbers, which, this year, have continued to be fairly steady, which gives us hope. We have a number of regular weekly attendees, some come monthly or less regularly, but we are glad to see all our children, however often they attend. This year, we amalgamated our Stepping and Explorers departments, which has meant a large combined department. This does cause additional pressure on our volunteer Leaders, who all do a wonderful job. In addition, all our youth helpers, story tellers, those who staff the crèche, the Fun Zone and so on give of their time and talents so willingly to ensure that all meetings where children are involved in the Young Church are positive and happy experiences for each and every child. All our Leaders and helpers are committed people and we, as a Church, owe them all a huge debt of gratitude.
In the Young Church, we have certain traditions, which we maintain, but we also like to try new initiatives. So, we have had another busy year, starting with the annual Harvest Thanksgiving service with the gifts again going to St. Catharine’s, and our annual gift service, with the gifts this year going to Women’s Aid. Our autumn charity appeal was held in aid of Heifer International. We filled Smartie tubes with 20p pieces, with the help of the congregation, and were able to buy a heifer, a goat, a llama and a pig with the proceeds.
This year, there is also a spring charity effort. We are supporting the World Mission Committee of the Church of Scotland who have been instructed by the General Assembly to “develop resources that will encourage congregations to commit their support to a three year initiative for the long-term rebuilding of communities”. The World Mission Committee has promised the United Mission to Nepal the funds to build 50 houses in the Dhadling region, the cost of each building being in the region of £500. The children of the Young Church produced a tea towel which was sold to raise funds which have been passed on to the World Mission Committee to help with their appeal.
In 2015, we also carried out a “conversation” with our children, to discover what they did and did not enjoy about the Young Church, and to try and make longer-term plans for the future. The good news was that the children enjoy the charity aspect of our work! They have suggested that we should become more computer-literate and plans are under way to make this happen during 2016.
2016 will see the end of the Associate Minister’s contract with Fairmilehead. It is vital that we continue to build on all the initiatives that she has begun and keep working to increase the number of children and young people in our church. These initiatives include the Holiday Club, Play and Praise, relationships with the nearby primary schools and uniformed organisations, and, perhaps most importantly, organising the teenage group in our church. The Pathfinders group has grown and now numbers around 20 teenagers. We will all miss Hayley when she leaves and send her, Bill and Ewan our very best wishes for the future.