Charity Registration No. SC001775 (Scotland)
Company Registration No. SC161692 (Scotland)
SOUND COMMUNITY ASSOCIATION
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 AUGUST 2023
PAGES FOR FILING WITH REGISTRAR
THE A9 PARTNERSHIP LIMITED
Chartered Accountants
47 Commercial Road
Lerwick
Shetland
ZE1 0NJ
SOUND COMMUNITY ASSOCIATION
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Mrs L Arcus
Ms R A Bremner
Ms L Nicolson
Mr J M Sinclair
Ms M Thomason
Mrs S Ruddock
Mr K Manson
Mrs L Campbell
Mr A Erskine
Mr G S Leask
Ms K P Murray
Miss D Kane
Miss C I Fordyce
Mr D C Bradley
Mrs L MacMillan
Secretary
Mrs S Ruddock
Charity number (Scotland)
SC001775
Company number
SC161692
Registered office
Sound Public Hall
Sound
Lerwick
Shetland Isles
ZE1 0SS
Independent examiner
The A9 Partnership Limited
47 Commercial Road
Lerwick
Shetland Isles
ZE1 0NJ
SOUND COMMUNITY ASSOCIATION
CONTENTS
Page
Trustees' report
1 - 2
Independent examiner's report
3
Statement of financial activities
4
Balance sheet
5
Notes to the financial statements
6 - 14
SOUND COMMUNITY ASSOCIATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 AUGUST 2023
- 1 -

The trustees present their annual report and financial statements for the year ended 31 August 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 objectives is managing the hall to conform with the local statutory authorities and voluntary organisations in the area. Every effort is made to advance education and provide facilities in the interests of social welfare recreation and other leisure time occupations, with the clear objective of improving the quality of life for the people living in the area.

 

The directors of the charity represent a wide section of hall users, with regular feedback from many organisations and groups who use the hall and its facilities.

Achievements and performance

The hall continues to offer a high standard of service and facilities to the community and the charity can look forward to the future with confidence.

 

Thanks must be given to all the volunteers who give their time and commitment to running and maintaining the hall and providing a valuable service to the community.

Financial review

The Association had a deficit of £6,990 (2022: £12,025). Unrestricted reserves totalled £69,067 (2022: £75,782).

The Trustees maintain reserves at a level which is adequate to meet the cashflow requirements of the association. The overall reserves level of £444,388 (2022: £451,378) is considered to be an acceptable level.

Risk factors

The trustees has assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the company, and are satisfied that systems are in place to mitigate exposure to the major risks.

SOUND COMMUNITY ASSOCIATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 2 -
Structure, governance and management

The Association is governed by its Memorandum and Articles of Association and was incorporated on 17th November 1995. All directors of the company are also trustees of the charity, and there are no other trustees. The policy and general management of the affairs of the Association is directed by a Board of Directors. All management decisions are made at regularly convened meetings.

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:

 

Mrs L Arcus
Ms R A Bremner
Ms M W Deyell
Mr R Gibson
Ms L Nicolson
Ms D Sinclair
Mr J M Sinclair
Ms M Thomason
Mrs S Ruddock
Mr K Manson
Mrs L Campbell
Mr A Erskine
Mr G S Leask
Ms K P Murray
Miss D Kane
Miss C I Fordyce
Mr D C Bradley
Mrs L MacMillan

All full members and representatives of constituent bodies and sections shall be eligible to stand for appointment to the board. One third of the board members, step down and can seek re-election at the next annual general meeting.

 

New trustees are provided within information necessary for the responsibility of holding office from the existing or past board members and from information available from OSCR.

 

All of the trustees are members of the charity and guarantee to contribute £1 in the event of a winding up.

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

Mrs S Ruddock
Director
Dated: 26 October 2023
SOUND COMMUNITY ASSOCIATION
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF SOUND COMMUNITY ASSOCIATION
- 3 -

I report on the financial statements of the charity for the year ended 31 August 2023, which are set out on pages 4 to 14.

Respective responsibilities of trustees and examiner

The charity’s trustees, who are also the directors of Sound 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 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 the course of 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.

JAYNE ANDERSON FCCA
The A9 Partnership Limited
47 Commercial Road
Lerwick
Shetland Isles
ZE1 0NJ
Dated: 20 November 2023
SOUND COMMUNITY ASSOCIATION
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2023
- 4 -
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2023
2023
2023
2022
2022
2022
Notes
£
£
£
£
£
£
Income from:
Donations and legacies
3
13
-
13
44
-
44
Charitable activities
4
49,611
-
49,611
31,777
-
31,777
Investments
5
20
-
20
20
-
20
Total income
49,644
-
49,644
31,841
-
31,841
Expenditure on:
Raising funds
6
338
-
338
-
-
-
Charitable activities
7
56,021
275
56,296
43,866
-
43,866
Total expenditure
56,359
275
56,634
43,866
-
43,866
Net expenditure for the year/
Net movement in funds
(6,715)
(275)
(6,990)
(12,025)
-
(12,025)
Fund balances at 1 September 2022
75,782
375,596
451,378
87,807
375,596
463,403
Fund balances at 31 August 2023
69,067
375,321
444,388
75,782
375,596
451,378

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
SOUND COMMUNITY ASSOCIATION
BALANCE SHEET
AS AT
31 AUGUST 2023
31 August 2023
- 5 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
423,733
422,169
Current assets
Stocks
12
5,650
5,889
Debtors
13
2,785
1,790
Cash at bank and in hand
24,664
29,824
33,099
37,503
Creditors: amounts falling due within one year
14
(12,444)
(8,294)
Net current assets
20,655
29,209
Total assets less current liabilities
444,388
451,378
Income funds
General restricted funds
19,750
20,025
Permanent grant fund
355,571
355,571
15
375,321
375,596
General unrestricted funds
69,067
75,782
Unrestricted funds
69,067
75,782
444,388
451,378

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 August 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 and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 26 October 2023
Mrs L Arcus
Trustee
Company Registration No. SC161692
SOUND COMMUNITY ASSOCIATION
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
- 6 -
1
Accounting policies
Charity information

Sound Community Association is a private company limited by guarantee incorporated in Scotland. Guarantees have been given by the trustees totalling £1 each. The registered office is Sound Public Hall, Sound, Lerwick, Shetland Isles, ZE1 0SS.

1.1
Accounting convention

The financial statements have been prepared in accordance with the charity's charity'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 charity is a Public Benefit Entity as defined by FRS 102.

 

The charity 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 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.

1.2
Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The trustees continue to adopt the going concern basis of accounting in preparing the financial statements as new members are actively being sought to help share the work to prevent the Hall from closure.

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 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.

 

Permanent grant funds are grant funding that has been received in respect of specific capital expenditure.

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. The income from fundraising ventures is shown gross, with the associated costs included in fundraising costs.

SOUND COMMUNITY ASSOCIATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 7 -
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
Tangible fixed assets

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:

Freehold land and buildings
not depreciated - see notes below
Plant and equipment
5 years straight line

Depreciation has ceased on the public hall as the property is considered to have a useful life as a building of greater than 50 years and so any depreciation charge is considered immaterial. The trustees consider that this departure from United Kingdom Generally Accepted Accounting Practice is necessary in order to provide a true and fair view.

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.

1.7
Impairment of fixed assets

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).

1.8
Stocks

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.

1.9
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.

SOUND COMMUNITY ASSOCIATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 8 -
1.10
Financial instruments

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

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.

1.11
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.

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.

SOUND COMMUNITY ASSOCIATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 9 -
3
Donations and legacies
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
Donations and gifts
13
44
4
Charitable activities

Unrestricted Funds

Unrestricted Funds

2023
2022
£
£

Bar takings

32,618
22,271

Lets

14,769
9,228

Dances, raffles and miscellaneous

2,224
278
49,611
31,777
5
Investments
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
Interest receivable
20
20
6
Raising funds
Unrestricted
Total
funds
2023
2022
£
£
Fundraising and publicity

Dances, raffles etc

338
-
338
-
SOUND COMMUNITY ASSOCIATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 10 -
7
Charitable activities

 

 

2023
2022
£
£
Staff costs
8,323
5,168
Depreciation and impairment
391
1,150

Bar purchases, adjusted for stock movements

14,691
8,535

Bank charges

666
410

Water rates

2,744
1,586

Electricity

13,996
8,422

Insurance

2,661
2,616

Repairs and renewals

3,905
9,455

Telephone

802
622

Stationery, postage and adverts

296
20

Sundry costs

-
39

Licences

1,229
735

Donations

500
-

Entertaining

287
-

Senior citizens

275
-
50,766
38,758
Share of governance costs (see note 8)
5,530
5,108
56,296
43,866
Analysis by fund
Unrestricted funds
56,021
43,866
Restricted funds
275
-
56,296
43,866
SOUND COMMUNITY ASSOCIATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 11 -
8
Support costs
Support costs
Governance costs
2023
2022
£
£
£
£
Audit fees
-
300
300
300
Legal and professional
-
13
13
13

Accountancy

-
1,967
1,967
1,420

Honoraria

-
3,250
3,250
3,375
-
5,530
5,530
5,108
Analysed between
Charitable activities
-
5,530
5,530
5,108

Honorariums are paid for holding the offices of: Secretary, Treasurer, Caretaker, Bar manager, Assistant bar manager and Bookings clerk. These are paid through the payroll system annually.

 

9
Trustees

Remuneration is paid to trustees as confirmed in the Memorandum and Articles of Association. Trustees are not remunerated for their work as trustees but for the work they perform in the course of their employment with Sound Community Association.

 

The following trustees were remunerated in the year:

 

 

The above parties are considered to the Key Management Personnel of the charity.

 

Expenses are not paid to trustees.

 

SOUND COMMUNITY ASSOCIATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 12 -
10
Employees

The average monthly number of employees during the year was:

2023
2022
Number
Number
8
7
Employment costs
2023
2022
£
£
Wages and salaries
8,323
5,168
There were no employees whose annual remuneration was more than £60,000.
11
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Total
£
£
£
Cost
At 1 September 2022
612,497
36,758
649,255
Additions
-
1,956
1,956
At 31 August 2023
612,497
38,714
651,211
Depreciation and impairment
At 1 September 2022
190,328
36,759
227,087
Depreciation charged in the year
-
391
391
At 31 August 2023
190,328
37,150
227,478
Carrying amount
At 31 August 2023
422,169
1,564
423,733
At 31 August 2022
422,169
-
422,169
12
Stocks
2023
2022
£
£
Raw materials and consumables
5,650
5,889
SOUND COMMUNITY ASSOCIATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 13 -
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,447
646
Prepayments and accrued income
1,338
1,144
2,785
1,790
14
Creditors: amounts falling due within one year
2023
2022
£
£
Other taxation and social security
2,334
1,797
Trade creditors
1,877
-
Other creditors
1,366
578
Accruals and deferred income
6,867
5,919
12,444
8,294
15
Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
Movement in funds
Balance at
1 September 2021
Incoming resources
Balance at
1 September 2022
Resources expended
Balance at
31 August 2023
£
£
£
£
£
General restricted funds
20,025
-
20,025
(275)
19,750
Permanent grant fund
355,571
-
355,571
-
355,571
375,596
-
375,596
(275)
375,321

General Restricted funds: relate to funding from the Sound Hall Trust to be used for the O.A.Ps in the Sound area.

 

Permanent Grant Fund: relates to funding from various funding bodies for the purchase of fixed assets.

SOUND COMMUNITY ASSOCIATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 14 -
16
Analysis of net assets between funds

Unrestricted funds

Restricted funds

Total

Unrestricted funds

Restricted funds

Total
2023
2023
2023
2022
2022
2022
£
£
£
£
£
£
Fund balances at 31 August 2023 are represented by:
Tangible assets
68,162
355,571
423,733
66,598
355,571
422,169
Current assets/(liabilities)
905
19,750
20,655
9,184
20,025
29,209
69,067
375,321
444,388
75,782
375,596
451,378
17
Related party transactions

There were no disclosable related party transactions during the year (2022 - none).

2023-08-312022-09-01falseCCH SoftwareiXBRL Review & Tag 2022.2SC1616922022-09-012023-08-31SC161692bus:Director12022-09-012023-08-31SC161692bus:Director22022-09-012023-08-31SC161692bus:Director52022-09-012023-08-31SC161692bus:Director72022-09-012023-08-31SC161692bus:Director82022-09-012023-08-31SC161692bus:CompanySecretary12022-09-012023-08-31SC161692bus:Director92022-09-012023-08-31SC161692bus:Director102022-09-012023-08-31SC161692bus:Director112022-09-012023-08-31SC161692bus:Director122022-09-012023-08-31SC161692bus:Director132022-09-012023-08-31SC161692bus:Director142022-09-012023-08-31SC161692bus:Director152022-09-012023-08-31SC161692bus:Director162022-09-012023-08-31SC161692bus:Director172022-09-012023-08-31SC161692bus:Director32022-09-012023-08-31SC161692bus:Director42022-09-012023-08-31SC161692bus:Director62022-09-012023-08-31SC1616922023-08-31SC1616922022-08-31SC1616922021-09-012022-08-31SC161692bus:FRS1022022-09-012023-08-31SC161692bus:SmallCompaniesRegimeForAccounts2022-09-012023-08-31SC161692bus:IndependentExaminationCharity2022-09-012023-08-31SC161692bus:FullAccounts2022-09-012023-08-31xbrli:purexbrli:sharesiso4217:GBP