The Trustee's present their annual report and financial statements for the year ended 31 March 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).
The charity runs the Kinellar Community Hall on behalf of the community.
It aims to provide a high quality service which meets the needs of the local community in a cost effective manner and to ensure the widest possible access to these facilities by people in the community of all ages. It periodically reviews services and promotes the advancement of the community hall as a facility.
The whole community has access to our facilities, which cater for a wide range of activities. The community make use of the facilities by booking private functions, religious festivals, birthday parties etc
The Trustee's have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake.
The gym remains popular, and we have introduced a number of new pieces of equipment in a bid to increase member numbers. Fitness class timetables are monitored, and classes added or removed depending on demand. The meeting rooms are utilised by local authorities and the hall remains to be used as a polling station for voters. During the year we held our annual Kinellar Gala, Halloween Disco, Bingo Nights, a Christmas Fayre and an Easter Fayre as part of our Fundraising efforts..
Information
The community at large are kept up-to-date with activities within the hall by posting on social media platforms and by putting up notices in the village (Kinellar School, Fechnie Brae House, local shops and at the Leys Hotel). Door drops are carried out with information on special events. Entries have also been included in the local newsletter Blackie Banter, which is distributed throughout the whole village. Notices are also posted on internal notice boards throughout the building
The management committee has examined the charity’s requirements for reserves in light of the main risks to the organisation. It has established a policy whereby the unrestricted funds not invested in tangle fixed assets held by the charity should be between 3 and 6 months of expenditure. These reserves are required to meet the working capital requirements of the charity and the Management Committee are confident that at this level, they would be able to continue the current activities of the charity, in the event of a significant drop in income. They are also required to meet the increasing costs of maintenance of the building, which is no longer new, and to begin to plan for the replacement of expensive equipment, for example exercise machines which will be very costly to replace when the time comes. This policy is reviewed on an annual basis and updated if necessary.
The balance held as unrestricted funds at 31 March 2023 was £854,429 of which £14,235 are regarded as free reserves, after allowing for funds tied up in tangible fixed assets.. Actual 3 month cash payments totalled £25,178 The current level of reserves is therefore lower than is needed and the charity will look to addressing this in current period.
FUTURE DEVELOPMENTS
The board has been strengthened by the appointment of new directors to support the new manager. New user groups have started running classes such as children’s football and karate, so this has also increased footfall in the building. We have also been able to go ahead with several fundraising events and look forward to hosting our annual Halloween disco and Hogmanay party. We have reached out to the community and sought their opinions on what events they would like to see in the future.
Going forward, the board and management will continue to monitor usage, and adapt to the needs of its users.
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
The charity is a charitable company limited by guarantee incorporated on 22 July 2005 and registered as a charity on the same date.
The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association.
In the event of the company being wound up, members are required to contribute an amount not exceeding £1.
The Trustee's, 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:
Appointment of Management Committee
The directors of the company are also charity trustees for the purposes of charity law and under the company's Articles are known as members of the Management Committee.
There will not be more than nine directions, comprising of four officers, three elected directors being members of the company elected as Elected Directors by Ordinary Resolution at the Annual General Meeting of the Company, and not more than two appointed directors, being members of the company appointed as directors by the governing body of Kinellar and Fintray Church.
The directors are elected to serve from Annual General Meeting to another. All candidates for election as Elected Directors or Appointment as Officers at any Annual General Meeting must signify in writing their willingness to stand and must be approached and seconded in writing by two members of the company. The chairperson and vice-chairperson may serve not more than four successive terms in those offices and must then take a one term break from that office but may be appointed to any other officer position during that one year break. These positions are all held by volunteers and no remuneration is received. Where necessary, Board members have their Enhanced Disclosure Scotland check in place. The board of directors covers a broad mix of skills taken from the local area.
Induction and training of new trustees
Most directors are already familiar with the work of the Association, but also took up the “Guided Tour” to familiarise themselves with the building and procedures. These are led by the Chairperson and the Manager. A copy of the Memorandum and Articles of Association has been issued to the directors for their retention.
Solicitors
Kellas Partnership
2-6 High Street
Inverurie
AB51 3XQ
Bankers:
Santander
Bootle
Merseyside
L30 5GB
Bank of Scotland
201 Union Street
Aberdeen
Organisational structure
The Board of Management of five directors meet monthly and are responsible for the strategy and policy of the Association.
The board delegate responsibility for the day to day running of the hall to the Manager and Assistant Manager. All user groups of the hall have a representative who attends quarterly meetings to discuss problems and issues relevant to their group. These meetings are chaired by a Director with the Manager in attendance.
Induction and training of new trustees
Most directors are already familiar with the work of the Association, but also took up the "Guided Tour" to familiarise themselves with the building and procedures. These are led by the Chairperson and the Manager. A copy of the Memorandum and Articles of Association has been issued to the directors for their retention.
Training
All new staff get shadow training with a member of staff until they are deemed suitable to take over a shift on their own.
Facility
The building comprises a two court/badminton hall, a multi-gym, showers, toilets, disabled facilities, three meeting rooms, two offices, kitchen, foyer, reception area and two stores. With a landscaped area outside and a car park, the community at large have access to a warm welcoming complex.
Risk management
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. The trustees have therefore conducted a review of all of the risks and a Risk Register is updated annually.
List of User Gropus
AFC Community Trust
Aberdeen & District Bee Association
Badminton Club
Blackburn Bowling Club
Blackburn Football Club
Blackburn Social Dancing
Nanbudo
Danz Creations
Fintray/Kinellar/Keithhall Church
Kinellar 2’s Group
Kinellar Beavers
Kinellar Cubs
Kinellar Kuppa
Make your Move
Kinellar Parents & Toddlers
Kinellar Playgroup
Kinellar Scouts
Kinellar WRI
Kinellar Rainbows
Wilson Football Coaching
Epic Fitness
Arbicabeats
Echo Fintness
Toddler
Wado Ryu Karate (Children)
Wadu Ryu (adults)
Saltire TKD
The Trustee's report was approved by the Board of Trustee's.
I report on the financial statements of the Charity for the year ended 31 March 2023, which are set out on pages 7 to 17.
The Charity’s Trustee's, who are also the directors of Kinellar Community Association 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 Trustee's 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.
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.
In connection with my examination, no matter has come to my attention:
to keep accounting records in accordance with section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;
to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Kinellar Community Association is a private company limited by guarantee incorporated in Scotland. The registered office is Kinellar Community Hall, Fintray Road, Blackburn, Aberdeenshire, AB21 0JQ, Scotland.
The financial statements have been prepared in accordance with the Charity's governing document, 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 Charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the Trustee's have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustee's 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 Trustee's 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 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.
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.
Tangible fixed assets 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.
At each reporting end date, the Charity 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).
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
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 Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Charity's balance sheet when the Charity 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 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, 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.
Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
In the application of the Charity’s accounting policies, the Trustee's 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.
Grants
Memberships/fitness
Vending machine income
Room & gym lets
Kinellar kuppa
Charitable Expenditure
Charitable Expenditure
Insurance
Light & heat
Telephone
Sundry
Repairs & maintenance
Cleaning
Les mills licence fee
Subscriptions
Fitness classes
Fundraising costs
Other purchases
Office costs
Bank charges
Independent examiners fee
The average monthly number of employees during the year was:
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
There were no disclosable related party transactions during the year (2022 - none).