INTRODUCTION

The Committee has a broad remit and throughout the past year the breadth of that remit has been fully reflected in the wide range of business that has occupied its attention. This report and its related appendices represent many hours of painstaking work as members have sought to discern and express the will of Christ for his Church in these days.

PRESBYTERY BOUNDARIES

In accordance with the decision of the 1997 General Assembly the revised boundaries and designations of Presbyteries became effective in August and September, and the Committee is confident that the new arrangements will make a helpful contribution to the Church's witness. The Committee is encouraged by the positive and co-operative response of all concerned and their determination to make the new system work.

MEMBERSHIP OF STANDING COMMITTEES

As a consequence of the reduction in the number of Presbyteries and in response to the instructions of the General Assembly, the Committee presented new proposals for membership of the Standing Committees to the Commission of Assembly held in January of this year. The nominations proposed on page 7 of this report reflect the changes agreed on that occasion. . GENERAL ASSEMBLY 1998

The arrangements for the 1998 General Assembly are contained in the Outline Order of Business in Appendix I. The Committee noted with satisfaction that attendance at the Workshops appears to have levelled out and encouraged the Planning Group to arrange an event on similar lines to those held on previous years. Leith Academy will once again provide the venue and the Rev Jan Cross and her colleagues are to be commanded for the scope and content of the programme they have organised. The Praise Service has now become an established feature of the General Assembly and will be addressed on this occasion by the Rev Professor Alan Main, Moderator Designate of the Church of Scotland. It was learned that because of refurbishment work the additional facilities normally provided by the Salvation Army would not be available on this occasion. Suitable accommodation in Leith:St.Thomas’ Junction Road Church of Scotland has been secured and thanks are due to that congregation for allowing us the use of their premises for those activities usually housed in the neighbouring Salvation Army hall.

DELEGATES/REPRESENTATIVES TO THE GENERAL ASSEMBLY

The Committee considered it necessary to clarify the position of Delegates/Representatives attending the General Assembly. It agreed to continue the current practice whereby those representing sister denominations should be identified as Delegates and have the right to speak, while those attending from other organisations should be regarded as Representatives and only permitted to speak when invited to do so.

GENERAL ASSEMBLY 1999 and 2000

As requested by the General Assembly the Committee has been actively exploring the possibility of holding meetings of General Assembly in venues other than in Edinburgh or Glasgow. The Committee is not yet in a position to make a positive recommendation in the matter but Perth has been identified as a possible location for the year 2000. It is the recommendation of the Committee that the 1999 General Assembly should be held once again in Milngavie.

RESIDENTIAL CONFERENCE

Consideration is being given to the possibility of holding a short Residential Conference at Stirling University in August 2000. It is recognised that such an event would require careful planning but that by providing our people with a unique opportunity for celebration and fellowship it could make an invaluable contribution to the deepening of the spiritual life of the denomination as it embarks on a new millennium.

PRAYER UNION

The Committee wishes to place on record its appreciation of the new Prayer Union booklet prepared and distributed by Mrs W G Billows and her enthusiastic Committee. In its expanded form the booklet is seen as a helpful aid to informed and systematic prayer and a timely reminder of its importance in the life of the Church. The proposed links with the Prayer Page in ‘Stedfast’ and Prayer Union secretaries are to be welcomed as a further indication of the Committee's intention to integrate the activities of the Prayer Union more fully into the life of the Church.

STEDFAST

The Committee remains indebted to the Rev D R Beatty for his faithful service to the denomination as Editor of the Church' s magazine. Circulation last year was approximately 2035. The Committee is encouraged that the level of sales has been satisfactorily maintained but would urge congregations to renew their efforts to promote the magazine and increase its circulation.

TRAINING DEVELOPMENT OFFICER

In the knowledge that the decision of the 1996 General Assembly was to appoint the Rev M J Marsden to the part-time post of Training Development Officer for a period of two years, the Committee was aware that the time had come for it to review that appointment and to determine how best to proceed in the future. To that end very full discussions have taken place over the past six-months - discussions involving the Committee's Support Group, the Rev M J Marsden, members of the Way Forward Group, Conveners and Vice-Conveners of Standing Committees and representatives of congregations that have benefited from the Training Development Officer's expertise. It is the Committee's view that the Church should take the bold step of moving from a part-time to a full-time appointment for a further five years. Other options were considered but the Committee is firmly of the opinion that if the Church is to reap the benefit of such an initiative a full-time appointment is the only realistic way forward. The Committee is further convinced that if the momentum gained over the past two years is not to be lost the Rev M J Marsden should be invited to perform that role.

The Committee is aware that the financial implications of such an appointment will be considerable but is satisfied that the necessary funding - in the region of £125,000 over the five year period - can be achieved without putting other aspects of the Church's work at risk.

In reaching this conclusion the Committee believes it is in some measure reflecting the mind of the last General Assembly when it reaffirmed "the importance of Mission and Evangelism in the life of the Church" and called upon the Committee to have "this priority reflected at all levels". It is the Committee's view that such an appointment will enable the Training Development Officer to address more fully and effectively the duties of such a person as detailed in the Supplementary Report presented to the General Assembly of 1996.

In seeking the Assembly's approval for such an appointment the Committee recognises its continuing responsibility to provide the person appointed such supervision and support as he may require to fulfil the task entrusted to him.

QUINQUENNIAL VISITATION SCHEDULE

The Committee was pleased to learn that the Way Forward Group was proposing to revise the Quinquennial Visitation Schedule. The Committee shared the Group’s concern that the general format and content of the existing schedule tended to inhibit rather than encourage discussion and that a revised version should aim to stimulate a more creative and forward-looking dialogue between the participants without at the same time losing sight of the supervisory purpose of such visits. The Committee is confident that the revised document which is printed in full in Appendix 3 will prove a helpful step in that direction.

CORRESPONDING MEMBERS OF PRESBYTERY AND GENERAL ASSEMBLY

Consideration has been given to the notices of motion in the name of Mr G M Smith which the General Assembly remitted to the Committee. It was recognised that the proposals they contained have important implications for the current structures of the Church and should be explored not in isolation but as part of that more comprehensive review of these issues to be undertaken by the Way Forward Group. It is therefore the Committee's view that consideration of these proposals should be continued for a further year and be assessed within the context of that more extensive ongoing review process.

READERS

The course for Readers held in Glasgow and Perth has been completed and 20 persons have indicated their desire to seek recognition as Readers of the United Free Church. The Committee wishes to place on record its appreciation of the contribution made by all who participated in the provision of the course and to commend all prospective Readers to the prayerful support and encouragement of the Church as they seek to discharge the duties entrusted to them in the life of the Church and in the service of their Lord.

WORKING WITH YOUNG PEOPLE

In response to the decision of last year's General Assembly the Committee has undertaken a review of the Church's procedures in relation to the appointment and supervision of those working with young people in the Church. The Committee is most grateful to the small sub-committee that undertook this formidable task on its behalf. Its recommendations are contained in the document entitled "The Care and Supervision of Children and Young People in the Church" which is reproduced in full in Appendix 4 to this report.

CHURCH HYMNARY REVISION COMMITTEE

The Committee wishes to thank Presbyteries and Kirk Sessions which responded to the General Assembly’s invitation to submit comments on a range of issues relating to the content of the proposed Hymnary. A summary of these responses was forwarded to the Revision Committee and may be found in Appendix 5. The 1998 Report of the Church Hymnary Revision Committee is included in Appendix 6. It should be noted that the Committee is continuing to enlist the co-operation of the participating Churches in the revision process and is, on this occasion, particularly inviting comments on the proposed ordering of the contents of the new book and suggestions of texts and tunes relating to those themes which will be subject to review over the coming months.

CHURCH HYMNARY TRUSTEES

The annual Report of Trustees is contained in Appendix 7. The Committee sees no reason why the Church should not agree to their proposal to discontinue the publication of CH3 as and when the new hymnal becomes available.

THE INTERNET

The Committee is actively investigating the possibility of the Church having a site on the Internet and is grateful to the Rev M C Keane for his informative advice on various options to be pursued. The Committee recognises the importance of taking advantage of the opportunities presented by this aspect of modern technology but wishes to ensure that the most effective use is made of the facilities available. In the meantime the Church has purchased access to the Internet through CIX (Compulink Information Exchange Ltd). In co-operation with CCBI this will facilitate participation in Computer Conferencing.

QUINQUENNIAL VISITATION

Visitations were made during the year to the following congregations:- East Dunfermline, Edinburgh: Blackhall, Corstorphine; St. Ninians.

West Ardeer, Ayr, Bargeddie, Glasgow: Cathcart, Drumchapel, Millerston; Whifflet.

North Forglen, Lossiemouth

MODERATORIAL VISITATION

Thanks are expressed to the Moderator, Rev J D Neil, and to Mrs Neil for all the work carried out for the Church in the course of the past year. Their visits to congregations have been a great encouragement to our membership, and their participation in various meetings of other denominations has provided a valuable link with our sister Churches.

East Alloa:Moncrieff, Blairlogie, Burntisland, Dysart, Edinburgh: Blackhall, Corstorphine, Portobello; St. Ninians

West Ayr, Ballachullish and Kinlochleven, Fort William, Glasgow: Langside and Shawlands, Millerston, Shieldhall and Drumoyne; Kilmaurs:Maxwell and Kilmarnock, Milngavie.

North Aberdeen:Northfield; Arbroath, Carnoustie:Erskine, Forglen, Cunningsburgh, Dounby, Lossiemouth, Sandwick and Westray

The Moderator also represented the denomination at the Assemblies of The Baptist Union of Scotland, The Church of Scotland, The Congregational Federation in Scotland, The Scottish Congregational Church and at the Synods of The Methodist Church and The Scottish Episcopal Church. Rev J G McPhee represented the denomination at the Assembly of the United Reformed Church.

PRESENTATION AND CONTENT OF FINANCIAL ACCOUNTS

Full copies of the accounts for 1997 are available to Commissioners from the General Secretary. This report contains the Balance Sheet, Statement of Financial Activities and a summary of the various funds held by the Church and salient comments upon them.

INVESTMENT POLICY

The change in the manner in which investments are held, whereby funds no longer hold specific investments but share in the total portfolio, was reviewed in the course of the year and found to be working satisfactorily. Each fund has received its due share of dividends and capital growth and many small funds that were held on deposit have now been able to benefit from the growth in investments. The increased flexibility meant that bank deposits were reduced and more funds were capitalised.

LAW REFORM (MISCELLANEOUS PROVISIONS (SCOTLAND) ACT 1990

The Committee is still awaiting the response of the Scottish Office to its request for designated status under the Act. The standardisation of congregational Financial Statements was carried out and Presbytery committees have reviewed these.

MEETING WITH TREASURERS

In view of the many changes Congregational Treasurers were facing, a meeting was held in each of the Presbyteries for Treasurers to be made aware of them and deal with any difficulties that might arise.

AUDITORS

A review was carried out of the arrangements for auditing the Church Accounts. The changes in legislation and in taxation have highlighted the need these days for specialist advice to be available from auditors in this complex area. A number of firms were invited to tender for the audit of the 1998 Accounts. The recommendation of the Committee is that the General Assembly appoint the firm of Moores Rowland to be the auditors for 1998. Moores Rowland is a medium sized firm with considerable expertise in the area of Charity Accounting. It is able to provide the necessary expertise and offered a very competitive quotation.

COMMENT ON FINANCIAL POSITION AND FUNDS

Church Funds have increased by £231,754 and amounted to £2,603,707 at 31st December 1997, an increase in resources of 9.8%. The Statement of Income and Expenditure and Resources on page 58 gives a breakdown of this increase; in summary it includes a small surplus of £1923 of Income over Expenditure before deducting the extraordinary payment to the Inland Revenue of £26,675, and before adding gains on sale of investments and property of £92,158 and £6548 respectively, and an unrealised gain on the revaluation of the investments amounting to £157,798.

The Investment Portfolio again performed well. Interest and dividends on investments and cash balances gave a return of 5.9% during the year. The gain on sale and revaluation of investments represents an 18% increase in the value of the portfolio. Additional funds have been deposited with Tilney for investment. The spread of investments has been widened giving additional security. After the year end the market was volatile for a little but has shown an upturn recently. One third of the portfolio is held in Government Securities and cash.

The Funds Statement on page 62 sets out the movements in the individual Funds of the Church. Apart from General Purposes, other Funds show an increase in resources. In some cases expenditure exceeds income but this was covered by gains on investments. General Purposes had a deficit of income on expenditure of £19,656 which, with the payment to the Inland Revenue of Tax and NHI underpaid in previous years, exceeded the gain in investments. Office costs have shown some increase partly as a result of the in-house printing of reports, accounts and other material. Steps are being taken to spread a higher share of the administration cost over other Funds.

Expenditure on student grants and bursaries has continued to rise due to Pastors being assisted to take University courses and additional support for all students. An allocation from Target kept the deficit on this fund at £2912 which was more than covered by the gain on investment. Other funds do not require any comment.

TARGET 1997 RECEIPTS AND ALLOCATION

The response to the Target has again been very encouraging with almost 100% received. The Committee is very grateful to those Congregations which contribute to the Target by monthly standing order and would encourage other Congregations to consider this method of contributing to the Target.

The Committee gave careful consideration to the Target for 1999 and recommend that congregations be asked to contribute at the rate of £18 per member as at 31st December 1998. This is an increase of £1 on the 1998 figure and the additional sum will be devoted specifically to maintain the work of the Training Development Officer.

BUDGETTING

The Committee continues to implement its intentions for budgeting. A meeting of the Conveners and Vice Conveners of all the Committees was held to introduce more fully the concept. Quarterly financial reporting is being introduced to make Committees fully aware of the state of the funds at their disposal.

THANKS

The thanks of the Committee are expressed to the General Treasurer, the Office Staff and Mr Peter Dick for all the work they have carried out over the past year.