REPORT OF THE BOARD OF TRUSTEES

Transcription

1 REPORT OF THE BOARD OF TRUSTEES Over the past year, the Board of Trustees dealt with a variety of issues including finance, policy, strategy, communication, compliance and risk management. The Board is encouraged by the breadth and depth of activities being undertaken across the Church. These activities, however, often attract increasing demands for resources and thus good stewardship is ever more important. The Board notes an operating financial shortfall for 2015; while smaller than some of the operating shortfalls in the past - with substantial progress having been made in this area in recent years - there is no room for complacency and, in order to support long term growth, the Board will continue to concentrate on the effective allocation of resources. (A) FINANCE REVIEW AND POLICY ISSUES Financial Overview At the time of writing, the Annual Report and Accounts for the year ending 31st December 2015 were still in preparation. The commentary below is based on draft figures. It is expected that audited accounts will be available by the time of the General Assembly. The financial results of the Church for 2015 are difficult to decipher due to a number of new accounting requirements which have come into force and result in lengthier and more complex accounting reports. However, at an underlying level i.e. excluding the one-off impact of property adjustments, other accounting gains/losses and legacies, the Church operated near the breakeven level, recording a shortfall of around 45,000. Income from congregational remittances and other donations increased by around 150,000 (4%) in the year, with the increase largely reflecting the first full year of remittances from new congregations. Excluding the impact of new congregations, remittances were broadly in line with The Board wishes to record its gratitude to those who give generously to the work of the Church and commends congregations that have worked hard to meet the remittance requirements. The Church, of course, does not operate to provide a surplus (or deficit) but any organisation seeking to grow, or support growth, will find growth more difficult coming from a position of year-on-year deficits. The Board has continued to work with other Boards and Committees in monitoring income and expenditure and, although a small shortfall was recorded for the year, the Board is grateful that the Church has almost matched recurring expenditure with recurring income in the year. The draft statutory accounts show a net movement in funds of 548,000 for the year. This includes legacy income of around 440,000 and various non-cash adjustments including a loss on valuation of investments of 208,000, a gain of 109,000 in relation to the pension deficit, and property gains of 86,000. In light of the movement in funds, the Board is currently reviewing cash requirements and funds with a view to determining if the Development Fund can be increased. Remittances and costs for the first quarter of 2016 were broadly in line with budget. The Board expects 2016 to be a tight year financially but, where cash flow permits, hopes to utilise free cash to support growth. 2. Stipend As part of the budgeting process for 2016, the Board approved an increase in stipend to 22,500 per annum from 1st January This represents a 500 increase from the previous year. 3. Pension Contributions The Board considers that the current level of employer pension contribution of 10% of pensionable salaries remains appropriate. 4. Legacies Legacies can account for a significant part of the Church s annual income and support vital work across the Church. The Board acknowledges with grateful thanks the legacies received during Legacies may reflect a lifetime of saving and investing and the Board is acutely aware of the need to expend legacies in a manner respectful of that.

2 Legator Fund Credited Dr A. MacPherson Mr D. Jack Ms. A Urquhart Mrs F. Mackenzie Ms. M Mary Mr A. Fraser Mr J. Miller Prof. G. Collins Seminary General Fund General Fund General Fund Mission General Fund General Fund General Fund 12,500 47, ,000 3, ,000 50, , , Investments The performance of the General Trust and Pension Fund investment portfolios was monitored throughout the year by a Joint Investment Committee comprising representatives of the Board together with the Pension Trustees. The funds were managed by Brewin Dolphin. Both funds generated income during the year but the capital value declined slightly, mainly due to poorer equity market performance in the second half of A summary of performance is noted below. General Trust As at 31st December 2015, the General Trust was valued at 4,302,757. This represented an annual decline in the portfolio of around 5%. The annual income from the fund is used to help fund the activities of the Church and, in some cases, produces income for congregations that have funds invested with the Board. The value of each unit in the share pool was worth 4.45 in 2015 compared with 4.69 in Interest on the capital sums held for the major funds and committees of the Church was distributed at 14.0p per unit. Pension Fund The Pension Fund showed similar performance over the year. At 31st December 2015 it was valued at 6,648,063, a 4.3% decline over the year. For accounting purposes, the Church is obliged, under the Financial Reporting Standards (FRS102) to provide an updated interim valuation of the Free Church of Scotland Pension Scheme s assets and liabilities. Barnett- Waddingham, the Scheme Actuary, carried out this valuation for the year ended 31st December This showed that the total assets of the Scheme (including bank cash deposits) were 6.327m, a decrease of 0.049m on the previous year. The Scheme liabilities decreased over the same period to m ( m in 2014). The combined effect has been to reduce the deficit in the Scheme on an FRS17 basis to 4.239m, an improvement of 0.313m in the year. A full actuarial review of the Pension Scheme, which will give a fuller picture of the position of the Scheme, is to be carried out within the next year. 6. Cash Flow and Trustee Loans The Board keeps the Church s cash flow position under review with the primary objective of meeting ongoing financial commitments, notably stipends, and a secondary ambition of utilising any available unallocated cash resources in supporting congregational projects through the provision of loans. The Board was pleased to be able to support a number of capital projects during the year. Loan applications are assessed on the basis of compatibility with overall Church strategy; plausibility of overall funding package as well as the project s aims and objectives; the congregation s ability to finance any loan; and the acceptance by the congregation of the loan conditions set by the Board. The Board is grateful that a number of congregations repaid loans earlier than scheduled, allowing funds to be recycled into other projects across the Church. 7. Development Fund The majority of this fund, which provides time-limited funding for special projects and activities that are clearly designed to make current work more sustainable and which could stimulate growth, is being routed through the Missions Board. At the time of writing, the first round of allocations is in progress. The Board will monitor the use of funds to ensure that the fund is effectively supporting sustainable growth, not simply maintaining the status quo.

3 (B) CAPITAL PROJECTS AND SUPPORTING GROWTH The Board is committed to good stewardship and effective allocation of the Church s resources. To this end, the Board continues to devote significant time in determining how it can most effectively support and resource growth across the Church. 1. Trustee Loans The Board is grateful that it has been able provide some loans to support capital projects but it has a restricted level of free cash resource. The Board is facing increasing demands for Trustee loans and cannot fully financially resource or support every congregation that desires to undertake capital or growth projects. The Board will consider at its next meeting closing down the loan book for a period until resources are replenished by sales and legacies. 2. Planning & Statistical Schedules In order to enhance decision making, the Board would encourage all areas of the Church to regularly strategically plan and review. While acknowledging that the Church is a faith-based organisation and should therefore hold its plans lightly and not be over-rigidly bound by them, the Board believes that strategic plans and frameworks are useful to congregations, boards and committees and Presbyteries. An understanding of congregational and Presbytery plans will also help the Board in its decision making and, ultimately, help support growth. The Board believes that good planning focuses people on the right things and also enhances the stewardship of limited resources. The Board has introduced a revised congregational statistics return and it is hoped the results, which will be disseminated across the Church, will be easier to analyse and provide useful data for planning purposes. The Board believes that good statistics are essential in understanding what we are doing as a Church and also the areas where we are failing to make an impact Budgets With many of the Church s financial commitments having an impact over a number of years the Board will continue to use three-year rolling budgets to allow better planning over a longer time horizon. The Board will work with other Committees and Boards throughout the year to produce budget schedules for 2017, 2018 and Income expectations will be based on the actual income in (C) COMPLIANCE AND RISK MANAGEMENT 1. Legal Compliance The Board notes the increasing burden of compliance and regulatory requirements placed upon congregations and the Church as a whole. The level of regulatory risk is significant; changes to charity law or taxation could have a significant impact on the Church s activities at all levels. As a result, the Board continues to monitor regulatory developments and, where appropriate, raise awareness across the affected areas of the Church. 2. Conflicts of Interest and Governance The Board is pleased that a Conflicts of Interest policy has been adopted by Presbyteries, Boards and Committees. The Board believes that an awareness of conflicts of interest and suitably managing them can foster free discussion, promote better decisions and ensure that there is no perception of improper decision making. The Board would urge all involved in meetings and decision making across the Church to refer to the policy and its principles during the conduct of business. The 2015 General Assembly instructed a review by the Assembly Clerks Office on the potential for conflicts of interest that might arise during Assembly business. The Assembly Clerks Office has not yet completed the review and will report to the report to the 2017 Assembly. 3. Risk Management The Board regularly reviews its Risk Register, helping the Board focus on the major risks facing the Church and on the associated mitigating steps. The Board asks that all Committees and Boards assist in managing the risks faced by the Church by identifying and taking ownership of risks in their areas of interest. The Board recently received an update presentation on the duties and responsibilities of Charity Trustees and, noting that the regulator, OSCR, has revised its own guidance in this area will be promoting this to relevant areas of the Church. 4. Protection of Vulnerable Groups/Safeguarding Safeguarding, which promotes protection of vulnerable children and adults is an essential tool in the Church. The Board, through the Church s Compliance

4 Officer, Mrs Muriel Macleod, and the Lead Signatory for PVG Scheme applications, Mr Iain Macleod have continued to promote the need for compliance with the Church s Safeguarding policy and, in particular, the need for all working with children and protected adults to become members of the Scheme. The Board was pleased to report an improvement in Ministers registered in the Scheme at the October 2015 meeting of the Commission of Assembly and urges all congregations to remain focussed on their responsibilities in this area, ensuring those in congregations working with vulnerable groups are members of the PVG Scheme. 5. Employment The Board notes that a number of congregations employ members of staff directly. The Board would like to remind congregations and Presbyteries that as these employees are not employed by the Church nationally, any employment issues, liabilities or claims will likely fall on local courts or Presbyteries. It is essential that these employees are issued with Contracts of Employment, that liability insurance is in place and that employment legislation is adhered to. The Board is acutely aware of the risk involved in complying with the legislation surrounding employment and is considering how the Church Offices can provide more help and guidance to congregations in the employment and management of congregational staff. Separately, the Board notes changes to immigration rules in the year and urges any congregations, Committees or Boards to make early contact the Church s Compliance Officer before considering employment of a non-eu worker. This is an increasingly complex area where it is important that the Church fulfils the requirements of the law. (D) COMMUNICATIONS 1. Communications The Board, through the Church s Communication Officer, continues to concentrate on its two objectives of improving internal communications across the Church and providing a compelling Christian voice in Scottish public life. The online profile of the church continued to expand during the year. The Board is currently developing and refining its work in the areas of public policy and contemporary issues. The Board is aware of the need to respond quickly to current events but also recognises the importance of having position papers on topical areas particularly where public policy is likely to diverge from Christian teaching. To this end the Board is currently considering options for improving access to research with a view to improving the quality of the Church s response to policy makers. The Board is considering the establishment of a filter group of interested ministers to assist the Board and the Communications Officer as a sounding Board on managing the content of the Church s website where the website has to carry a Church view about issues of public interest and importance. The Board has received representations for the revival of the Public Questions Committee style of comment on topical issues. The Board is not persuaded of the efficacy of reviving this activity the Assembly clearly were not minded to do so when they abolished the committee. The Board of course believes that ministers and others should be engaged on communicating and researching the Christian viewpoint on such issues but feels that it does not need to set up some elaborate mechanism to achieve this end. Recognising that websites are increasingly the first source of information on local churches, the Board would encourage any congregations with little or no existing online presence to make contact with the Communication Officer for advice and assistance. A church template is available and may provide a relatively straightforward way for a congregation to improve its online presence in the short-term. It is not the function of the Board to regulate social media but the Board is anxious that social media is used responsibly and thoughtfully, recognising the power inherent in social media to represent the Church and the gospel in a meaningful and responsible manner. 2. Review of Magazines and Editor Appointments Following the resignation of Rev. Dr Malcolm Maclean as editor of The Record in 2015, the Board undertook an appointment process and Rev. Dr I. D. Campbell commenced editorship for the January 2016 edition. A process to refresh the design and layout of the magazine is underway and a new design will be released in the coming months. Part of the communications strategy approved by the Board includes a commitment to review the various publications produced by the Church, to ensure that these have a clear purpose and are produced to a high standard in the most cost effective way possible. The Board is currently undertaking a review of Free and Compass publications, and shortly expects to hold a focus group to explore the position of these magazines in the new multimedia world where printed media continues to lose ground, particularly amongst the young. The editors of both Free and Compass magazines are due to complete terms of office at the 2016 Assembly. In light

5 of the current review the Board is grateful that the editors have indicated willingness to remain in post while the review process is undertaken. (E) MINISTERIAL CATEGORIES FOR MINISTERS NOT IN A CHARGE Following advice from the Principal Clerk, the Board examined the existing categories under which ordained ministers of the Free Church of Scotland, and Probationers, are listed and concluded that these categories were in need of restructuring. It is not satisfactory to have the names of resigned and retired ministers held on the same list (the Roll of Resigned and Retired Ministers); there is also a need to add a new category for ministers who are not in a charge, or retired or resigned, but not currently available for a Call; and greater clarity is required towards a better understanding of ministerial categories and how they operate. Currently, the names of all Free Church ministers serving in a charge (i.e. a congregation, a mission field, or a position equivalent to a charge such as full-time appointments by induction in the Edinburgh Theological Seminary) are held on the appropriate Roll of Presbytery, as also the names of ministers who have retired from a Free Church charge and have been granted a seat in a Presbytery of the Church. All other names of ordained Free Church Ministers and Probationers in good standing currently appear on (1) the Register of Ministers without Charge Eligible for Call; or (2) the Roll of Resigned and Retired Ministers; or (3) the Roll of Probationers. The proposals for a revised set of categories is set out in the Proposed Deliverance. (F) OTHER MATTERS 1. Historical Records During the year, the Board consulted with Presbyteries on the storage of historical records including records of Kirk Sessions, Deacons Court and Finance Committees. The Board is concerned that records are widely dispersed and may not be kept in suitable condition. The Board believes that safekeeping and preservation of these records is important and would be considerably improved if all records greater than 100 years old were to be deposited in a public archive. The Board believes that Presbyteries should be responsible for identifying a suitable public archive for those in its bounds and ensuring that all records are deposited there unless Presbytery grants permission in individual cases to retain the records for a longer period. 2. Role of Moderator The Board considered the role of the Moderator of the General Assembly during the year and believes it may be useful to review the appointment process and the remit of the Moderator. With the reduction of committees the appointing group has become narrower than in past years and it is therefore desirable to reconsider the appointing mechanism to address this issue. Whilst the Board recognises that from a strictly formal viewpoint the Moderator s duties are solely to chair the sittings of the General Assembly and the Commission, in reality there is an external expectation that where the Church speaks nationally the Moderator is the representative of the Church. It is also a fact that in past years the Moderator has used his office to promote the Church both at home and overseas. The activity of the moderator has varied significantly from year to year and has depended very much on the person occupying the office, his gifting and his interests. The Board feels that there should be more planning around this role with particular reference to the duties and responsibilities of the Moderator in the period between the Assembly they moderate and the next Assembly. 3. Governance: The Forum & Placements In the light of the reduced committee structure and with a view to ensuring joined up governance the Board has established an informal forum where the chairs and conveners of the Board of Trustees, the Missions Board, the Board of Ministry and ETS together with the Missions Director and the Principal of ETS meet under the chairmanship of the CEO with a view to keeping each committee well informed in relation to the actions and plans of the others and also discussing matters of mutual interest. The Board is anxious to ensure the succession on committees of younger people and to that end with the blessing of the Assembly has introduced an opportunity for two younger elders or deacons to sit as advisers on the Board. The Board commends this scheme and urges Presbyteries to provide the names of ordained members under 40 years of age from whom the Board can select two placements. 4. The Bookshop The Board is conscious of the value of the book service that is provided by the Bookshop. The Board is anxious to balance the cost of the service with the wider value of having such a facility. The Board is aware of the opportunities and challenges of internet purchases and the attraction of other

6 models of procurement to congregations. Accordingly the Board is undertaking a review of the operation of the bookshop and will report on the matter to a future Assembly. 5. Ministerial Vacancies At the 2015 General Assembly, the Board was asked to consider options to expedite the filling of ministerial vacancies when they arise, without compromising in any way the sovereignty of the congregational call. During the year, the Board became aware that the Missions Board was considering its role in vacant congregations so instead of addressing the matter independently the Board provided comments and input to the Missions Board in this area. 6. Ministry Apprentices The Board endorses strongly the value of ministry apprenticeships and encourages the Board of Ministry to continue work in developing models. The Board recognises the scheme as an effective way of securing recognition of calls to ministry and ensuring that the Church allocates its training monies to the right people. 7. Standing Committees and Boards The 2015 General Assembly instructed the Board to continue its consideration of areas in the work of Standing Committees and Boards where it might be appropriate for non-ordained members of the Church to serve in a more formal capacity. The Board considered the area during the year and concluded that no changes to current practice are necessary at this time. 8. Manse Occupation During the year, the Board considered the current practice of ministers occupying manses provided by congregations. The Board agreed that the practice should remain, thus avoiding financial and practical complications including different housing market conditions in different charges. The Board is aware that HMRC are consulting on the tax treatment of employer provided living accommodation and will keep abreast of any developments. 9. Principal Clerk of Assembly In recent months the Board received, with regret, a letter from Rev. James Maciver resigning from his position as Principal Clerk of Assembly. Mr Maciver will remain in post until the close of the 2017 General Assembly. To facilitate the transition, the Board has decided that a new appointment be made by the 2016 General Assembly and that the person appointed take up the post from the close of the 2017 Assembly. This will give sufficient time in the coming year to make the person appointed familiar with the workings of the post before taking over. The Board sought nominations from Presbyteries and the returns are shown in the following table, with a corresponding item in the Proposed Deliverance. PRESBYTERY NAMES SUBMITTED Edinburgh and Perth Rev. Angus Macrae Rev. Nigel Anderson Rev. Malcolm Macleod Glasgow and Argyll Rev. Nigel Anderson Rev. Malcolm Macleod Western Isles Rev. Malcolm Macleod Inverness, Lochaber and Ross Rev. Malcolm Macleod Rev. David MacPherson Northern Rev. Malcolm Macleod Skye and Wester Ross Rev. Malcolm Macleod TOTALS Rev. Malcolm Macleod - 6 Rev. Nigel Anderson - 2 Rev. Angus Macrae - 1 Rev. David MacPherson Custodier of Titles The 2015 General Assembly approved an expedited process for dealing with petitions relating to properties held under the Model Trust Deed. The Board, in conjunction with the Custodier of Titles, has since implemented a process for dealing with related requests. The new process has allowed more meaningful consideration of proposals and for matters to be dealt with in a more timely fashion. 11. Chief Executive Officer Mr Rod Morrison tendered his resignation from his post as Chief Administrative Officer during the year. The Board is appreciative of both the volume and quality of work and service rendered to the Church by Mr Morrison. Following a recruitment process Mr Scott Matheson was appointed as Chief Executive Officer in June 2015.

7 12. Disruption Painting During the year, the Board was approached by Tate London in relation to a potential loan of the Disruption Painting for an upcoming exhibition. After obtaining two professional opinions on the condition of the painting and agreeing the transport, display, insurance and other necessary arrangements, the Board agreed to the loan and is pleased to report that the painting is to be displayed at Tate London this summer. 13. Free Church Continuing The Board continued to monitor developments in relation to the Free Church (Continuing) and its occupation of Free Church congregational properties. The Board understands that discussions are ongoing in most of the congregations still affected, with agreements or at least the prospect of agreement being reached in several of these. 14. Associated Presbyterian Churches (APC) Representatives of the Board have held discussions with APC to discuss closer co-operation and explore the potential for greater unity between the two Churches. 15. Overtures Following the Board s report to the 2015 General Assembly the following two Overtures were sent by the Assembly to Presbyteries under the terms of the Barrier Act: (a) Overture proposing an increase in proportional representation in the General Assembly; (b) Overture proposing measures relating to the election of elders to the General Assembly. The responses from Presbyteries are shown in the following table and there is a corresponding item in the Proposed Deliverance. Presbytery Response to Increase Representation Response to Election of Elders Edinburgh and Perth Approved None received (=rejected) Glasgow and Argyll Approved Approved Inverness, Lochaber and Ross Approved Approved Northern Rejected Rejected Skye and Wester Ross Rejected Approved Western Isles Rejected Rejected North America None received (=rejected) None received (=rejected) (G) NOMINATIONS The Clerks Office and is pleased to present the following recommendations through the Report of the Board of Trustees. 1. Resignations Since the 2015 General Assembly the following resignations took place: Mr John Matheson resigned from the Board of Trustees. The Clerks Office in consultation with the Board appointed Mr Iain Gray to serve on the Board in place of Mr Matheson. The Board is requesting that Mr Gray s interim appointment be approved by the Assembly and that he be appointed for a complete term of appointment as from the 2016 Assembly as shown in the Proposed Deliverance. Rev. Chris Smart indicated his resignation from the Board of Trustees effective from the end of the 2016 Assembly. 2. The Board of Trustees has highlighted to the Clerk s office that the term of the present Chairman, Mr James Fraser, was due to expire at the 2017 General Assembly, and that there is no one within the current membership both suitable and willing to take on the role of Chairman. The Board of Trustees, therefore, request that Mr Fraser s term be extended for a further two years, to expire at the 2019 General Assembly. The Clerks Office recommends that the General Assembly waive Paragraph 1 of Act XXIII, Class II, 2007 regarding the membership of the Board of Trustees, and in particular, that part which makes reference to the Chairman being appointed for a four year term, renewable by the General Assembly for one further term of four years, and that they extend Mr Fraser s appointment as Chairman of the Board of Trustees for an additional two years after it is due to expire, to terminate at the 2019 General Assembly as requested. JAMES M. FRASER, Chairman JOHN H MACLEAN, Vice-Chairman

8 PROPOSED DELIVERANCE (A) FINANCE REVIEW AND POLICY 1. The General Assembly receive and adopt the Report of the Board of Trustees and thank the Chairman, members of the Board and the Church s staff for their work. 2. The General Assembly acknowledge with humility and thanksgiving the provision made by the Lord for the work of the Church. They thank those who gave in a regular, responsible and liberal manner in support of that work and record their appreciation for legacies received during the year. 3. The General Assembly declare a stipend of 22,500 from 1st January They approve the continuance of the other categories of salary that are paid at a fixed proportion of the stipend. (B) CAPITAL PROJECTS AND SUPPORTING GROWTH 1. The General Assembly note the increased demand for Board of Trustee loans. They endorse the Board s view that regular strategic planning at congregational and Presbytery levels may assist in decision making. 2. The General Assembly recognise the importance of planning over a longer time horizon and instruct Boards and Committees to work with the Board of Trustees to produce budget schedules for 2017, 2018 and 2019 and Presbyteries to work closely with the Missions Board and formulate strategic plans for increasing the impact of Presbyteries on the populations which they serve. (C) COMPLIANCE AND RISK MANAGEMENT 1. The General Assembly note the Board s ongoing work in assessing the risks facing the Church. They instruct the Board to keep these risks under review and seek the assistance of Presbyteries, Boards and Committees in managing the relevant risks. 2. The General Assembly instruct the Board to raise awareness of Charity Trustee s duties and responsibilities across the Church and provide guidance where appropriate. 3. The General Assembly note the benefits of a Conflicts of Interest Policy in promoting good governance at Committee and Board level. They urge all involved in meetings and decision making across the Church to continue to refer to the principles during the conduct of business. 4. The General Assembly note the potential for conflicts of interest that might arise during Assembly business and to that end instruct the Assembly Clerks Office to undertake a review and to report to the 2017 Assembly through the Board of Trustees. 5. The General Assembly instruct all Kirk Sessions to ensure that they comply with the requirements of the PVG Scheme, seeking advice from the Church s Compliance Officer where necessary. They extend their gratitude to Mr Iain MacLeod for his service as Lead Signatory for PVG Applications. 6. The General Assembly instruct the Board to keep developments in relation to safeguarding matters under review and to provide support to congregations in implementation of the Safeguarding Policy and Guidelines. 7. The General Assembly remind both congregational courts and Presbyteries of their obligations to ensure compliance with all employment legislation pertaining to any persons they may engage or appoint on a contract basis. Accordingly, they instruct them to ensure compliance with all appropriate employment legislation, and to have in place employer s liability insurance. 8. The General Assembly instruct any congregation, committee or board to make early contact with the Church s Compliance Officer for advice when considering employing any person from outside the European Union, whether in a paid or unpaid role and regardless of the length of stay. (D) COMMUNICATIONS

9 1. The General Assembly endorse the Board s desire to refine its work in the areas of public policy and contemporary issues and to investigate ways to improve access to research on current issues and respond and engage with policy makers. 2. The General Assembly encourage any congregations with little or no online presence to make contact with the Communications Officer for advice and assistance in this area. 3. The General Assembly note the appointment of Rev. Dr I. D. Campbell as Editor of The Record and record their gratitude for the work of the previous Editor, Rev. Dr M. Maclean. 4. The General Assembly endorse the Board s plan to undertake a detailed review of Free and Compass magazines. They thank Mrs Nicolson and Mrs Howat for their editorial of Free and Compass and are grateful to them for agreeing to continue in post while the review occurs. (E) MINISTERIAL CATEGORIES The General Assembly ordain that from the close of this Assembly the following categories and related stipulations shall apply to all ordained ministers of the Free Church of Scotland with the exception of those in a Charge, those in posts specified as equivalent to a Charge and which include a seat in a Presbytery of the Free Church, and those who are without a Charge but have been awarded a seat in a Presbytery of the Free Church. The Principal Clerk of Assembly shall maintain a complete record comprising the names of all those listed in the categories below. He shall produce the complete list annually and shall report the same to the General Assembly through the report of the Board of Ministry. 1. Roll of Ministers without Charge Eligible for Call The Roll of Ministers without Charge Eligible for Call shall comprise all ordained ministers of the Free Church in good standing who are not already in a Charge and are in a position to receive a Call. Placement on this Roll shall be taken to imply an individual s sincere readiness to accept a call in appropriate circumstances. Congregations shall not address a Call to any Minister listed in Categories 2, 3 and 4 of this Act. 1.1 Ministers on this Roll who become unavailable for call must inform their Presbytery who shall in turn direct the Principal Clerk to transfer their name to whichever category is relevant to their circumstances. While remaining on this Roll ministers shall not be eligible for a seat in Presbytery or to serve on Assembly-appointed Boards and Committees of the Church. 1.2 In no case shall the name of a minister remain on the Roll of Ministers without Charge Eligible for Call for more than three years from the date of inclusion in the Roll unless application for an extension of the period be made to the Presbytery within whose bounds he is resident before the expiry of the three-year period. When the minister resides outwith the bounds of a Presbytery of the Free Church of Scotland, his application for retention on the Roll shall be made to the Presbytery of which he was previously a member. In no case shall a name remain on the Roll for more than six years. 1.3 Ministers on the Roll of Ministers without Charge Eligible for Call shall be under the jurisdiction of the Presbytery within whose bounds they are resident. If a minister takes up residence outwith the bounds of any Presbytery of the Free Church of Scotland, he shall remain under the jurisdiction of the Presbytery within whose bounds he last resided. 2. Roll of Ministers without charge not eligible for Call The Roll of Ministers without Charge not Eligible for Call shall comprise all ordained ministers of the Free Church in good standing who are not in a position to receive a Call but who are not retired or have not resigned their charge. 2.1 Ministers on this Roll who indicate that they wish to be available for Call must petition the General Assembly through the Board of Ministry for transference to the Roll of Ministers without Charge Eligible for Call. While remaining on the Roll of Ministers without Charge not eligible for Call, ministers shall not be eligible for a seat in Presbytery or to serve on Assembly-appointed Boards and Committees of the Church.

10 2.2 A minister on this Roll who has an appointment outside the Free Church of Scotland, and who seeks a seat on the Presbytery in which he resides, may petition the General Assembly, through the Presbytery. He shall continue to be a member of the Presbytery for the duration of the period in which he holds the appointment on the basis of which he is granted his seat; and on ceasing to hold such an appointment his membership of Presbytery shall lapse and his name placed on the Roll of Ministers without Charge not Eligible for Call, or the Roll of Ministers without Charge Eligible for Call, whichever is the more appropriate. 2.3 Ministers on the Roll of Ministers without Charge not Eligible for Call shall be eligible for election as Ruling Elders of the congregation to which they belong, provided they have not resigned from this charge previously, but they may not be elected, as Ruling Elders or appointed as Assessor Elders, either to represent the Kirk Session at Presbytery and Synod, or as Commissioners to the General Assembly. 2.4 Ministers on the Roll of Ministers without Charge not Eligible for Call shall be under the jurisdiction of the Presbytery within whose bounds they are resident. If a minister takes up residence outwith the bounds of any Presbytery of the Free Church of Scotland, he shall remain under the jurisdiction of the Presbytery within whose bounds he last resided. 3. Roll of Retired Ministers The Roll of Retired Ministers shall comprise all ordained ministers of the Free Church in good standing who have taken retirement but do not have a seat in Presbytery, including those who have been received from other denominations since retiring. 3.1 A minister may apply for permission to retire on attaining the age of 65 years. 3.2 Applications for earlier retirement on the grounds of ill health shall be subject to the rules of the Free Church of Scotland Pension Scheme or the rules of such other pension arrangement(s) as may be in place at the time. 3.3 Those ministers with qualifying service in the Free Church of Scotland Pension Scheme shall address applications for payment of retirement benefits to the trustees of the Scheme. Applications for payment of pension benefits in respect of service after 31st December 2007 shall be directed to the third party administrator. All ministers are encouraged to seek independent financial advice when considering options for retirement. 3.4 All applications for retirement must be supported by extract minutes from the relevant Kirk Session and Presbytery and these must show that the applicant has agreed to resile from his rights of active participation in the courts of the congregation - his right to respond to a specific request from the Moderator or Interim Moderator of the congregation being unchanged. 3.5 Retirement shall involve the surrender of the emoluments of the Charge, and the vacation of the manse unless the Deacons Court permits continuing occupation for a period; the congregation shall be deemed to be and declared to be vacant by order of the Presbytery after the specified retirement date has been reached. 3.6 Ministers retiring upon attainment of retirement age, or on the grounds of ill health, may petition the Presbytery within whose bounds they are to reside, for a seat in that Presbytery. Should their request be granted their name will be added to the Roll of Presbytery and the Clerk of Presbytery shall inform the Principal Clerk of Assembly and he shall remove their name from this list. Upon relocation to another Presbytery they must apply for a seat in that Presbytery by petition, or their names shall be added to the Roll of Retired Ministers. In the case of ministers who take up residence in a Presbytery other than that receiving their application to retire, an extract minute from the Presbytery receiving their application to retire in support of the Petition, shall be obtained. 3.7 All ordained ministers of the Free Church retiring, through attainment of retirement age, or for health reasons, from service in international mission fields where this has been under the supervision of the Missions Board, may similarly petition the Presbytery within whose bounds they are to reside, for a seat in that Presbytery. In this case the supporting extract minute shall be provided by the Board. 3.8 The General Assembly further direct that ministers and missionaries serving under the oversight of the Missions Board, who, at retirement, choose not to apply for a seat in a Presbytery shall continue to be under the jurisdiction of the Presbytery within whose bounds they are resident. In the event of any such minister moving outwith the bounds of a Presbytery of the Free Church, he shall be under the jurisdiction of the Presbytery within whose bounds he last resided. The General Assembly direct Presbyteries to keep the names of the said ministers on

11 the Roll of Resigned Ministers, maintained by the Clerk of each Presbytery and reviewed annually. Presbytery Clerks shall inform the Assembly Clerk at the beginning of each calendar year of the names on the said Roll. 3.9 Retired ministers, including those granted a seat in a Presbytery, shall not be eligible to serve on Assembly-appointed Boards and Committees of the Church A minister who has retired in terms of this Act may have his name included in the Communion Roll of the congregation which he regularly attends For disciplinary purposes the retired minister is accountable to the Presbytery within whose bounds he resides Retired ministers who are granted a seat in a Presbytery and retired ministers who do not apply for a seat in Presbytery shall be eligible for election as Ruling Elders of the congregation to which they belong, provided this be not their last charge before retirement, but they may not be elected, as Ruling Elders or appointed as Assessor Elders, either to represent the Kirk Session at Presbytery and Synod, or as Commissioners to the General Assembly Each Presbytery of the Church shall maintain a list of ministers on the Roll of Retired Ministers who are resident within the bounds of the Presbytery. Presbyteries are required to make due investigation annually that such individuals continue to associate with the Free Church of Scotland and after due intimation to the individual concerned, may order their name to be removed from the Roll if appropriate grounds are found. 4. Roll of Resigned Ministers The Roll of Resigned Ministers shall comprise all ordained ministers of the Free Church in good standing who have resigned their charge and have not become ministers of another denomination. 4.1 This list includes the following: (a) Ministers who resigned their charge simpliciter; (b) Ministers who resigned their charge and are employed by other agencies and are financially supported by the Free Church but not seconded by a Board or Committee of the Free Church of Scotland; (c) Ministers who resigned their charge and are employed by other agencies but are not financially supported by the Free Church. 4.2 When a minister s resignation of his charge has been accepted by his Presbytery, the Clerk of Presbytery (or, in the case of a Missions Board Charge, the Clerk of the Missions Board) shall inform the Principal Clerk of Assembly by Extract Minute. The Extract Minute shall include the resolution of the Presbytery to place the name of the minister either on the Register of Ministers without Charge eligible for call or on the Roll of Resigned Ministers. 4.3 The normal procedure shall be that the name of the resigning minister shall be placed on the Roll of Resigned Ministers. If the Presbytery resolve to place the name on the Roll of Ministers without Charge eligible for call, they must minute positive reasons for such placement on it, or subsequent continuance on or transference to it, and the Extract Minute furnished to the Principal Clerk shall contain these reasons. Such reasons shall be of the following order: Where resignation is due to a breakdown in health; Where resignation or severance of the pastoral tie is due to non-censurable incompatibility with his congregation; Where resignation is due to secondment by a responsible Board or Committee of the Free Church to other pastoral or para-pastoral work Where the contract of a minister in a terminable appointment is not renewed by resolution of the General Assembly. 4.4 Placement on the Roll of Resigned Ministers shall not be granted where the resigning minister has accepted an appointment outside the Free Church of Scotland other than by secondment as noted at above.

12 4.5 If a minister whose name has been placed on the Roll of Resigned Ministers shall be admitted to the ministry or other full-time employment of another Church other than by secondment, his name shall be removed from the Roll. 4.6 A Minister whose name is placed on the Roll is required to notify the Clerk of Presbytery of any change of address. If a minister takes up residence within the bounds of another Presbytery of the Free Church of Scotland, he shall also inform the Clerk of that Presbytery of his address and thereafter becomes under the jurisdiction of that Presbytery. In such a case the Presbytery Clerk shall advise the Principal Clerk. 4.7 A request by an individual whose name is on the Roll of Resigned Ministers to have his name removed therefrom shall be dealt with by the Presbytery within whose bounds he resides. That Presbytery after due investigation and on due grounds shown (such as, the individual concerned no longer associates with the Free Church of Scotland) may declare him to be no longer a minister of the Free Church of Scotland and order that his name be removed from the Roll. 4.8 A Minister whose name is on the Roll of Resigned Ministers and who desires to have his name transferred to the Register of Ministers without Charge shall petition the General Assembly through the Presbytery within whose bounds he is resident at the time, such petition to conform with the conditions of paragraph 4.4 above. 4.9 A minister, who has resigned his charge to accept an appointment outside the Free Church of Scotland, and who seeks a seat on the Presbytery in which he resides, may petition the General Assembly, through the Presbytery. He shall continue to be a member of the Presbytery for the duration of the period in which he holds the appointment on the basis of which he is granted his seat; and on ceasing to hold such an appointment his membership of Presbytery shall lapse and his name placed on the Roll of Resigned Ministers Ministers who have resigned shall be eligible for election as Ruling Elders of the congregation to which they belong but they may not be elected, as Ruling Elders or appointed as Assessor Elders, either to represent the Kirk Session at Presbytery and Synod, or as Commissioners to the General Assembly Ministers on the Roll of Resigned Ministers shall be under the jurisdiction of the Presbytery within whose bounds they are resident. If a minister takes up residence outwith the bounds of any Presbytery of the Free Church of Scotland, he shall remain under the jurisdiction of the Presbytery within whose bounds he last resided Each Presbytery of the Church shall maintain a list of ministers on the Roll of Resigned Ministers who are resident within the bounds of the Presbytery. Presbyteries are required to make due investigation annually that such individuals continue to associate with the Free Church of Scotland and after due intimation to the individual concerned, may order their name to be removed from the Roll if appropriate grounds are found. 5. Roll of Probationers This list comprises all Probationers in good standing licensed by the Free Church of Scotland and who are available for Call. Probationers who no longer wish to be available for Call shall inform their Presbytery specifying the reasons. If their request to be removed from the Roll of Probationers is granted the Presbytery shall inform the Principal Clerk of Assembly by extract minute authorising him to remove their name from this list. 5.1 A Probationer is a candidate for the ministry who has completed the course of studies required by the Board of Ministry and has been licensed to preach by his Presbytery. He is eligible for calls to pastoral charges. 5.2 Clerks of Presbyteries shall send the names and addresses of all who may be licensed by them as Probationers, with dates of license, within one week thereafter, to the Principal Clerk of Assembly with a copy to the Clerk to the Board of Ministry. 5.3 The Principal Clerk shall prepare and maintain a Roll of all Probationers of the Free Church according to date of license and shall provide the Board of Ministry annually with a list of all the names and addresses on the Roll, and the Board shall incorporate the list into its report to the General Assembly. 5.4 No name shall remain on the Roll of Probationers for more than six years, except as provided for in 5.5 and 5.6 below.

13 5.5 At any time between the sixth and tenth anniversaries of his name having been placed on the Roll of Probationers, an individual may petition the Presbytery within whose bounds he resides to have his name restored to the Roll, and the Presbytery, if it sees good cause, shall inform the Principal Clerk who shall restore the name to the Roll where it shall be retained until ten years have elapsed from the initial registration. 5.6 After ten years have elapsed from a name being added to the Roll of Probationers, it shall not be continued except by direct instruction of the General Assembly upon consideration of a petition for that purpose, supported by the Presbytery within whose bounds an individual then resides, and presented through the Board of Ministry. 5.7 A Probationer is not eligible to conduct Marriage Services or dispense the Sacraments of Baptism and the Lord s Supper. 5.8 Probationers are subject to the oversight of the Presbytery within whose bounds they reside, though the Presbytery may choose to exercise pastoral care through the Kirk Session of the congregation of which he is a member. The Presbytery has a responsibility to meet with Probationers under their oversight regularly and shall meet in private for this purpose. 5.9 A Kirk Session shall not issue a Disjunction Certificate to a Probationer awaiting a call without prior reference to the Presbytery Where a Disjunction Certificate is granted to a Probationer, the Presbytery Clerk should forthwith inform the Clerk of Assembly; and likewise when the Probationer subsequently comes under the pastoral oversight of another Presbytery, the Presbytery Clerk shall inform the Assembly Clerk so that the Probationer s name be continued on the Roll of Probationers If when granted a Disjunction Certificate, a Probationer does not lodge it within six weeks with another Free Church congregation, he shall be deemed to have removed his name from the Roll of Probationers. 6. The General Assembly direct that Act XVIII, Class II, 2013, be amended by the addition of the following as new paragraph 6, with existing paragraphs 6, 7, and 8 renumbered accordingly: The General Assembly direct that for each Assistant Minister duly inducted and granted a seat in Presbytery, there be a corresponding Ruling Elder from the Kirk Session of the congregation in which the Assistant is placed. A corresponding elder granted a seat in Presbytery to offset Assistant Ministers shall retain their seats only for such time as a seat is retained by the said Assistant. 7. The General Assembly repeal Act XXXIII, Class 2, 2012 and Act XXXIV, Class 2, (F) OTHER MATTERS 1. The General Assembly note the Board s concern over the storage of older Kirk Session, Deacons Court and Finance Committee records and (i) instruct Presbyteries to identify a suitable public archive for storage of records and to pass records of churches within their bounds to the public storage where the records are 100 or more years of age with the proviso that Presbyteries are permitted at their discretion to pass record which are less than 100 years old to the same public storage; (ii) instruct Presbyteries to ensure that where records are being kept locally that they ensure that the place of storage are known, suitable and secure; and (iii) that where no suitable storage is available for records not deposited in a public archive such records are passed to the church offices in Edinburgh for storage until such time as they are eligible for storage in a public archive. 2. General Assembly instruct the Board of Trustees, in consultation with the Assembly Clerks office, to review the appointment process and duties and responsibilities of the Moderator of the General Assembly and report to the 2017 General Assembly. They instruct, in particular, that the review include examination of the duties and responsibilities of the Moderator in the period between the Assembly they moderate and the succeeding Assembly. 3. The General Assembly instruct the Board to undertake a review of the Bookshop and the services provided and report to a future Assembly.