The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Memorandum and Articles of Association (as amended), the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
The Trust's objectives are:-
To advance the development and regeneration of Ardrishaig for the benefit of the community and the public in general following general principles of sustainable development.
To manage community land and community assets for the benefit of the community and the public in general following the principles of sustainable development.
To provide or assist in providing recreational facilities and/or organising recreational activities which will be available to members of the public at large with the object of improving the conditions of life of the community following the principles of sustainable development.
To advance the education of the community about its environment, culture and history.
To advance environmental protection or improvement including preservation and conservation of the natural environment, the promotion of sustainable development, the maintenance, improvement or provision of environmental amenities for the community and/or the preservation of buildings or sites of architectural, historic or other importance to the community.
The directors have paid due regard to guidance issued by the Charity Commission in deciding what activities the trust should undertake.
One of the Trust's activities is the making of grants that benefit the people and community of Ardrishaig, and the wider public. These grants are concentrated primarily within Ardrishaig community area which is defined by the PA30 postcodes plus PA31 8NH and PA31 8NY. Grants made outside this area are only made on the basis of clear benefit to the Ardrishaig community.
Grants are made in accordance with the Trust's Memorandum & Articles of Association and are made to meet the Trusts objectives.
Applications for grants will not be accepted from the following:
Political organisations;
National organisations, unless there is a local branch;
Religious organisations;
Companies who aim to distribute a profit.
Ardrishaig Renewable Energies Ltd. (ARE) is a wholly owned subsidiary of the Trust. It is the Trust's trading business which is a member of Allt Dearg Wind Farmers LLP (ADWF). ARE gifted to the Trust £269,250. There was no specific ACTion Fund held during the year. There were however grants made to local causes totalling £2,500.
The Trust created an office space in the Public Hall and enhanced the Hall kitchen facility such that several larger scale events, including wedding receptions, were hosted.
The Trust received a grant from the Scottish Government, Strengthening Communities Programme, to employ a Development Officer (DO). Main duties include developing the business to market the use of the Trust assets and create a program of activities. Secondary duties include Halls management.
The board has continued the policy of building up a strategic cash reserve over this financial year, with a view to being able to support local redevelopment being planned at this time. The Trust Board noted that we are nearly half of the way in to the Alt Dearg Wind Farm income and wish to leave a lasting legacy for the village in the future. As stated before this will strengthen the Trust and its members position in any future plans for the village.
It is the policy of the trust that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six months anticipated expenditure above the strategic reserve. The directors consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Trust’s current activities while consideration is given to ways in which additional funds may be raised. In order not to compromise the Trust's charitable status the accounts need to show that the assets are sufficient to enable the Trust to repay its borrowings.
The directors have assessed the major risks to which the the trust is exposed and are satisfied that systems are in place to mitigate exposure to the major risks.
Future plans include consolidating, fulfilling and developing the Trust's present objectives. It is anticipated that the income derived from the wind farm will be in excess of £80,000 per annum.
Membership is open to the public through a process of application. Members have democratic control of the trust with all members having one equal vote. Those serving as elected officials are accountable to the membership.
The directors' report was approved by the Board of Directors.
I report on the financial statements of the the trust for the year ended 31 October 2022, which are set out on pages 5 to 21.
The directors, who also act as trustees for the charitable activities of the Trust, are responsible for the preparation of the accounts in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The directors consider that the audit requirement of Regulation 10 (1) (a) to (c) of the Accounts Regulations does not apply.
In connection with my examination, no matter has come to my attention:
to prepare accounts which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Ardrishaig Community Trust is a private company limited by guarantee incorporated in Scotland. The registered office is The Old Surgery, School Road, Tarbert, Argyll, PA29 6UL.
The financial statements have been prepared in accordance with the Trust's Memorandum and Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The the trust is a Public Benefit Entity as defined by FRS 102.
The the trust has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the the trust. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the directors have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future. Thus the directors 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 directors in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the the trust has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Where it is possible to identify payment for services received in advance, such payments are recognised as deferred income.
Income received for the hire of the North Church Hall and Public Hall is recognised at the time the service becomes final, usually upon receipt of payment from third parties.
All expenditure is included on an accruals basis and is recognised when there is a legal or constructive obligation to pay for expenditure. All costs have been directly attributed to one of the Charity Activities as expended on the SOFA.
Support and governance costs have been allocated to various charitable activities on a basis for which the directors believe is representative of each activities relative share of costs.
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, 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 cost of Land (£6,000), the North Church Hall (£88,603) and Office space (£25,780) are held at purchase costs which the directors believe represents the fair value of the assets as at the balance sheet date.
The fair value of the Public Hall and associated equipment has been assessed by the directors to be at its carrying value (acquisition cost plus redevelopment costs) as at the balance sheet date.
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
A subsidiary is an entity controlled by the the trust. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting end date, the the trust reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The the trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the the trust's balance sheet when the the trust becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include trade and other receivables 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 trade and other payables 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the the trust’s contractual obligations expire or are discharged or cancelled.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
In the application of the the trust’s accounting policies, the directors 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.
Donations of £269,250 (2021: £96,459) were received from Ardrishaig Renewable Energies Ltd, a company that is wholly owned by Ardrishaig Community Trust. This donation includes donations made under Gift Aid where applicable.
North and Public Halls
Community Growth
Robbers Den
North and Public Halls
Community Growth
Performance related grants
Charitable rental income
Other income
ACTion fund
North & Public Halls running costs
Community Growth
ACTion fund
North & Public Halls running costs
Community Growth
Maintenance costs
Rates
Heating and electric
Insurance
Advertising
Set-up costs
Phone
Postage and stationary
Event expenses
Professional fees
ACTion fund
ACTion fund
Heat and light
Insurance
Subscriptions
Postage, stationary and advertising
General
Bank charges
Loss on disposal of tangible fixed assets
Governance costs includes payments of £2,436 (2021- £2,232) for accountancy services.
None of the directors (or any persons connected with them) received any remuneration during the year, however two were reimbursed a total of £2,090 (2021: 2 directors totalling £794) for expenses.
Further payments were made to a related party, which are disclosed at note 21.
The average monthly number of employees, including directors, during the year was:
Transfers totalling £776 were made from unrestricted funds to restricted funds representing costs associated with the the Development Officer and associated work that were not covered by grant funding received from the Scottish Government.
£456 grant funding received from Argyll & Bute Council was to meet running costs for the Public and North Halls.
£18,000 grant funding (brought forward) and £10,827 received from the Scottish Government was funding towards maintaining the services of a development officer and to meet office set-up costs for this project. Included in the closing balance of £7,304 is computer and office equipment of net book value of £974 that has been capitalised.
During the year the the trust entered into the following transactions with related parties:
During the year and amount of £3,600.89 was paid to Kenneths of Stronachulin LLP, a limited liability partnership in which Duncan Broadfoot is a director. This represented costs incurred by Ardrishaig Community Trust that were settled via this LLP.
At the balance sheet date, an amount of £2,056 was payable to Kenneths of Stronachulin LLP representing supplier payments made, but not yet reimbursed.
The following amounts were outstanding at the reporting end date:
The following amounts were outstanding at the reporting end date:
At the balance sheet date an amount of £156,867 was owed by Ardrishaig Renewable Energies Ltd representing gift-aided donations receivable for the year.
These financial statements are separate Trust financial statements from Ardrishaig Renewable Energies Ltd (ARE) which is an intermediate holding company for the investment in ADWF.
Details of the the trust's subsidiaries at 31 October 2022 are as follows:
The investment in the subsidiary is stated at its fair value which is deemed to be its Net Asset value as at 31 October 2022. The Net Asset value excludes any uplift in the underlying fair value of the subsidiary's interest in Allt Dearg Wind Farmers LLP (ADWF).