Charity registration number SC003174 (Scotland)
Company registration number SC010795 (Scotland)
THE SCOTTISH VETERANS' GARDEN CITY ASSOCIATION (INCORPORATED)
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
THE SCOTTISH VETERANS' GARDEN CITY ASSOCIATION (INCORPORATED)
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Mr A J Grant
Major D J Hamilton
Mr G W Michie
Major R J W B Proctor MBE OSti FSA SCOT
Secretary
Mr K Gray MM
Chief Executive Officer
Mr K Gray MM
Charity number (Scotland)
SC003174
Company number
SC010795
Registered office
1 Waterfront Avenue
Edinburgh
EH5 1SG
Independant Examiner
Johnston Smillie Ltd
6 Redheughs Rigg
Edinburgh
EH12 9DQ
Solicitors
Brodies LLP
58 Morrison Street
Edinburgh
EH3 8BP
THE SCOTTISH VETERANS' GARDEN CITY ASSOCIATION (INCORPORATED)
CONTENTS
Page
Trustees' report
1 - 3
Independent examiner's report
5
Statement of financial activities
6
Balance sheet
7
Statement of cash flows
8
Notes to the financial statements
9 - 13
THE SCOTTISH VETERANS' GARDEN CITY ASSOCIATION (INCORPORATED)
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 JANUARY 2023
- 1 -

The Trustees present their annual report and financial statements for the year ended 31 January 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the 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).

Objectives and activities

The Charity's principal objective is to provide and maintain affordable rented accommodation for persons who have served in Her Majesty's Forces and have been discharged through ill health and who, while serving or after completion of service, have been disabled.

Achievements, performance, and plans

With effect 28 January 2021, the Society became the sole member of the Association, with all existing members of the Association resigning their membership.

 

Having completed the transfer of assets and activities on 31 January 2022 the charity has ceased charitable activity and operating as a Company. During the current financial year to 31 January 2024 the Directors resolved to wind up the charity and cease to operate as a Company and to take all reasonable steps to complete the wind up by 31 January 2024.

 

From 1 February 2021, the Association legally transferred its assets and activities to the Society. The transfer was completed by 31 January 2022.

Financial review

There has been no financial activity during the year. (2022: deficit of £7,115,984)

Structure, governance and management

A Memorandum and Articles of Association govern the organisation, which is a registered Scottish Charity and a Company limited by guarantee. It was incorporated on 2 December 1919.

The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

 

Mr A J Grant
Major D J Hamilton
Mr G W Michie
Major R J W B Proctor MBE OSti FSA SCOT
Ms E Howie
(Resigned 19 September 2023)
THE SCOTTISH VETERANS' GARDEN CITY ASSOCIATION (INCORPORATED)
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 2 -
Appointment and Induction of Directors

The Chairman and the Board of Directors consider the appointment of new Directors at their Board meetings to maintain a diverse profile and ensure that different areas of expertise are represented. The maximum number of Directors shall be twelve, and the minimum number of Directors shall be five. Directors are appointed for three years, and after that, they are eligible for re-appointment for a further three years.

 

New Directors are invited to attend a half-day induction to become familiarised with the work of the Charity. Areas covered, and backed by written briefs supplied to support the presentations, are:

 

Decision Making

Under the Memorandum and Articles of Association, the Charity business is managed by a Board of Directors, which meets a minimum of three times a year and may exercise all the organisation's powers.

Details of Related Parties

The organisation operated in conjunction with The Scottish Garden City Housing Society Ltd, an Industrial Provident Society and Scottish Charity and in whose name all property is secured.

Risk Management

The Charity has a Risk Register that considers all risks to which the Charity may be exposed. This is regularly monitored and reviewed. The Directors continue to consider the adequacy of the Charity's current internal control procedures.

Anti-Bribery Statement

This is a statement by the Board of the Scottish Veterans' Garden City Association regarding the Charity's commitment to meet its responsibilities under the provisions of the Bribery Act 2010 (which came into force on 1 July 2011):

 

"The Board and Executive Team will not tolerate bribery or corruption from Board members, Staff, District Committee members of the Association or anyone working on our behalf, including contractors. We are committed to carrying out our business transparently and fairly. Therefore, we operate a zero-tolerance policy towards bribery. As a Company with charitable status, Scottish Veterans' Garden City Association is committed to eliminating corruption and bribery and achieve the highest standards of governance in all of its activities."

THE SCOTTISH VETERANS' GARDEN CITY ASSOCIATION (INCORPORATED)
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 3 -
Statement of disclosure of information to independent examiner

In so far as the trustees are aware:

 

 

The trustees are responsible for the maintenance and integrity of the corporate and financial information included in the Charitable Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

 

The charity trustees consider that the audit requirement of Regulation 10 (1) (d) of the 2006 Accounts Regulations does not apply.

 

The Directors' Report is prepared in accordance with the special provisions of Part 15 of the Companies Act 2006, relating to small companies.

The Trustees' report was approved by the Board of Trustees.

Major D J Hamilton
Chairman
24 October 2023
THE SCOTTISH VETERANS' GARDEN CITY ASSOCIATION (INCORPORATED)
STATEMENT OF TRUSTEES' RESPONSIBILITIES  
FOR THE YEAR ENDED 31 JANUARY 2023
- 4 -

The Trustees, who are also the directors of The Scottish Veterans' Garden City Association (Incorporated) for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

 

Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

 

In preparing these financial statements, the Trustees are required to:

 

- select suitable accounting policies and then apply them consistently;

 

- observe the methods and principles in the Charities SORP;

 

- make judgements and estimates that are reasonable and prudent; and

 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

 

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

THE SCOTTISH VETERANS' GARDEN CITY ASSOCIATION (INCORPORATED)
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF THE SCOTTISH VETERANS' GARDEN CITY ASSOCIATION (INCORPORATED)
- 5 -

I report on the financial statements of the charity for the year ended 31 January 2023, which are set out on pages 6 to 13.

Respective responsibilities of Trustees and examiner

The charity’s Trustees, who are also the directors of The Scottish Veterans' Garden City Association (Incorporated) for the purposes of company law, are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investments (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The Trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the 2006 Accounts Regulations does not apply. It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Act and to state whether particular matters have come to my attention.

Basis of independent examiner's statement

My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeks explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the financial statements.

Independent examiner's statement

In connection with my examination, no matter has come to my attention:

(a)
which gives me reasonable cause to believe that in any material respect the requirements:
(i)

to keep accounting records in accordance with section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and

(ii)

to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;

have not been met or
(b)

to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.

Lea Brash BA CA
Johnston Smillie Ltd
The Institute of Chartered Accountants of Scotland
6 Redheughs Rigg
Edinburgh
EH12 9DQ
Dated: 25 October 2023
THE SCOTTISH VETERANS' GARDEN CITY ASSOCIATION (INCORPORATED)
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 JANUARY 2023
- 6 -
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2023
2023
2023
2022
2022
2022
Notes
£
£
£
£
£
£
Charitable activities
-
-
-
5,461,645
1,654,339
7,115,984
Net expenditure and movement in funds
-
-
-
(5,461,645)
(1,654,339)
(7,115,984)
Reconciliation of funds:
Fund balances at 1 February 2022
-
-
-
5,461,645
1,654,339
7,115,984
Fund balances at 31 January 2023
-
-
-
0
-
-
-
0

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

THE SCOTTISH VETERANS' GARDEN CITY ASSOCIATION (INCORPORATED)
BALANCE SHEET
AS AT
31 JANUARY 2023
31 January 2023
- 7 -
2023
2022
Notes
£
£
£
£
The funds of the charity
-
0
-
0

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 January 2023.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 24 October 2023
Major D J Hamilton
Trustee
Company registration number SC010795 (Scotland)
THE SCOTTISH VETERANS' GARDEN CITY ASSOCIATION (INCORPORATED)
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2023
- 8 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
11
-
(3,888,891)
Net cash used in investing activities
-
-
Net cash used in financing activities
-
-
Net increase/(decrease) in cash and cash equivalents
-
(3,888,891)
Cash and cash equivalents at beginning of year
-
3,888,891
Cash and cash equivalents at end of year
-
-
THE SCOTTISH VETERANS' GARDEN CITY ASSOCIATION (INCORPORATED)
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
- 9 -
1
Accounting policies
Charity information

The Scottish Veterans' Garden City Association (Incorporated) is a private company limited by guarantee incorporated in Scotland. The registered office is 1 Waterfront Avenue, Edinburgh, EH5 1SG.

1.1
Accounting convention

The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

The financial statements have been prepared on a going concern basis.

 

With effect 28 January 2021, the Society became the sole member of the Association, with all existing members of the Association resigning their membership. From 1 February 2021, the Association transferred its assets and activities to the Society. The activities during the 2022 financial year were solely devoted to completing the orderly transfer of all assets by the year end.

 

We will continue to review the governance of the Charity along with its status and future activities. The Directors are expected to discuss and decide the future of the Association within the financial year to 31 January 2024. The Directors will not close the Association for at least a period of 12 months from the date of signing the financial statements for the year ended 31 January 2023. The directors are therefore satisfied that the going concern basis of preparation of the financial statements is appropriate.

1.3
Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.4
Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

THE SCOTTISH VETERANS' GARDEN CITY ASSOCIATION (INCORPORATED)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
1
Accounting policies
(Continued)
- 10 -
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
1.5
Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

 

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6
Cash and cash equivalents

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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.7
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

THE SCOTTISH VETERANS' GARDEN CITY ASSOCIATION (INCORPORATED)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 11 -
2
Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Trustees 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.

3
Trustees
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
4
Employees

The average monthly number of employees during the year was:

2023
2022
Number
Number
Total
-
0
-
0
There were no employees whose annual remuneration was more than £60,000.

The members of the Board of Directors are company Directors who serve in a voluntary capacity and are unpaid. Directors' expenses amounting to £Nil (2022: £Nil) were reimbursed.

5
Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

6
Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

Previous year:
At 1 February 2021
Resources expended
At 31 January 2022
£
£
£
Houses for Heroes Appeal
1,444,435
(1,444,435)
-
Consortium funding
179,234
(179,234)
-
Iraq Veterans' Fund
11,540
(11,540)
-
Shawmuir Lodge
19,130
(19,130)
-
1,654,339
(1,654,339)
-
THE SCOTTISH VETERANS' GARDEN CITY ASSOCIATION (INCORPORATED)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
6
Restricted funds
(Continued)
- 12 -

 

Houses of Heroes Fund

 

To enable the Association to build houses for disabled ex-Service personnel.

 

Iraq Veterans' Fund


To provide adaptations to houses for veterans of the war in Iraq.

 

Shawmuir Lodge

 

Funding received towards the refurbishment of Shawmuir Lodge.

7
Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

Previous year:
At 1 February 2021
Resources expended
At 31 January 2022
£
£
£
Property Fund
100,000
(100,000)
-
General funds
5,361,645
(5,361,645)
-
5,461,645
(5,461,645)
-
8
Related party transactions

With effect from 1 February 2021, The Scottish Garden City Association transferred all undertakings to the Scottish Garden City Housing Society. See following note.

9
Charitable Donation

With effect from 1 February 2021, The Scottish Garden City Association transferred all undertakings to the Scottish Garden City Housing Society. The transfer is recognised as a charitable donation in the Association to the value of £7,115,984. The breakdown is as follows:

 

                             £

Fixed assets                         1,469,802

Investments                         2,370,683

Cash                             3,859,003

Net current liabilities                     (583,504)

                

7,115,984

            

THE SCOTTISH VETERANS' GARDEN CITY ASSOCIATION (INCORPORATED)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 13 -
10
Ultimate Controlling Party

Under the Memorandum and Articles of Association the Directors are responsible for governing the charitable company.

 

11
Cash generated from operations
2023
2022
£
£
Deficit for the year
-
(7,115,984)
Adjustments for:
Non-cash charitable donation
-
3,810,597
Movements in working capital:
(Increase)/decrease in debtors
-
98,036
(Decrease) in creditors
-
(681,540)
Cash absorbed by operations
-
(3,888,891)
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