The directors and trustees present their annual report and financial statements for the year ended 31 May 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 charitable company's Memorandum and Articles of Association, the Companies Act 2006, 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 charitable company's objects are 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 and following principles of sustainable development, where sustainable development means development which meets the needs of the present without compromising the ability of future generations to meet their own needs.
Following the extraordinary general meeting on the 2 November 2017, the trustees changed the objectives of the charitable company to the following:
The charitable company has been formed to benefit the community of Grantshouse as defined by the postcode units, TD11 3RN, TD11 3RR, TD11 3RW, TD11 3RP, TD11 3RL, and TD14 5TP. (''the Community"), with the purposes listed in the sub-articles hereto (“the Purposes”), to be exercised following the principles of sustainable development (where sustainable development means development which meets the needs of the present without compromising the ability of future generations to meet their own needs), namely;
To provide or advance the accessibility of recreational facilities and/or organising recreational activities, which will be available to members of the Community and public at large with the object of improving the conditions of life of the Community.
Advancement of citizenship or Community development, including rural or urban regeneration.
To advance environmental protection or improvement including preservation, sustainable development and conservation of the natural environment, 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 and trustees have paid due regard to guidance issued by the Office of the Scottish Charity Regulator in deciding what activities the charitable company should undertake.
It is now five years since the Old Filling Station site in Grantshouse was purchased by Grantshouse Development Company (the charitable company) with the intention to landscape what is currently a derelict site and develop the old kiosk as a shop. The planning permission for the shop came with the condition that any contamination on the site was dealt with to the satisfaction of the planning department. It is delays in this process that have held up developing the site, mainly caused by the slow nature of investigations, the COVID pandemic, SEPA suffering a major computer hack, and latterly, maternity leave for our IKM contact.
This last financial year saw us submit our Phase 2 report to the Council contamination officer on the 30 September, a milestone because it is the third and final report required from a dig with all other reports from now on being desk-based and therefore much cheaper. Up to 23 November 2022 and including the cost of this last report we have paid a total of £40,298 to IKM.
This Phase 2 report included a Generic Quantitative Risk Assessment covering risks to human health as well as the environment and from this IKM were given permission to draw up a Remediation Options Appraisal which was duly done and submitted to the Council contamination officer in April 2023. We now know we will have to remove the old fuel tanks and complete a certain amount of hardstanding over certain areas, gas monitoring is also an ongoing possibility.
A contractor has been identified who will likely carry out the work and the next step is to submit a Remediation Strategy that the contractor, IKM and the Council can agree before we carry out the work.
RES who run the Penmanshiel windfarm have been very supportive throughout the remediation process and without the knowledge that we had their funds apportioned to this project it would have required repeated funding applications and more delay.
Trevor Warne has led on the remediation management and helped all involved through a difficult and testing process.
Our Development Officer Jenny Sutton who is funded by the Scottish Communities Program has been arranging a new bike station in Grantshouse, helped to organise improvements and events on the Houndwood river walk and produced a regular newsletter for the Community Council amongst many other tasks.
The charitable company donated £5,000 to help pay for surface matting at the new playpark in Reston a few miles down the road where many Grantshouse children go to school.
During the year the charitable company received donations totalling £59,261 (2022: £5,860) and incurred expenditure totalling £12,614 (2022: £5,301). At the year end Restricted funds held were £176,801 (2022: £136,777) and Unrestricted funds were £27,027 (2022: £20,259).
It is the policy of the charitable company that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The directors and trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charitable company’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
Risk review
The directors and trustees have assessed the major risks to which the charitable company is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The charitable company was incorporated on 13 May 2008, as a charitable company limited by guarantee. It is governed by its Memorandum and Articles of Association.
The directors and 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:
Appointment of directors and trustees
Potential directors and trustees are appointed by existing directors and trustees. The number of directors and trustees shall be no more than 10 and up to one individual person may be appointed by Grantshouse Community Council.
The charitable company has a board of directors and trustees who set the strategy and policy of the charitable company and are responsible for the day to day management of the charitable company.
The charitable company also has members, who elect people to serve as directors and trustees and take decisions in relation to any changes in the Memorandum and Articles of Association.
Director and trustee induction and training
New directors and trustees are given a copy of the Memorandum and Articles of Association, the latest report and financial statements, and all the charitable company's documents on governance. Subject to their experience and expertise, they are also given pamphlets issued by the Office of the Scottish Charity Regulator explaining the duties of Trustees of Charities and offered training in any area of their duties which they think they would like strengthening.
None of the directors and trustees have any beneficial interest in the charitable company. All of the directors and trustees are members of the charitable company and guarantee to contribute £1 in the event of a winding up.
Public benefit
Throughout this report the directors and trustees have sought to highlight those activities undertaken by the charitable company in furtherance of its charitable objectives for the public benefit. In considering the operations, achivements and performance and finances of the charitable company, the directors and trustees are satisfied that public benefit has been provided in accordance with the Charities and Trustee Investment (Scotland) Act 2005 and guidance provided by the office of the Scottish Regulator.
The directors and trustees, who are also the directors of Grantshouse Development Company Limited for the purpose of company law, are responsible for preparing the Directors And 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 directors and trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company 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 directors and 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;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The directors and trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors and Trustees report was approved by the Board of Directors And Trustees.
I report on the financial statements of the charitable company for the year ended 31 May 2023, which are set out on pages 6 to 14.
The charitable company’s directors and trustees, who are also the directors of Grantshouse Development Company Limited 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 directors and 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.
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.
Investments
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Investments
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Grantshouse Development Company Limited is a private company limited by guarantee and incorporated in Scotland. The registered office is Brockholes Farmhouse, Grantshouse, Duns, Berwickshire, TD11 3RL.
The financial statements have been prepared in accordance with the charitable company'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 charitable company is a Public Benefit Entity as defined by FRS 102.
The charitable company 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 charitable company. 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 directors and trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors and trustees 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 and 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.
Cash donations are recognised on receipt. Other donations are recognised once the charitable company has been notified of the donation, unless performance conditions require deferral of the amount.
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts.
All expenditure is accounted for on an accruals basis. Costs are allocated to appropriate headings, based on the activity to which they are attributable.
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:
At each reporting end date, the charitable company 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.
Investments
Bank interest
Direct charitable expenditure
Management and administration costs
Depreciation
Field maintenance
Repairs
General administrative expenses
Insurance
Rates
Development officer
Accountancy fees
Governance costs includes payments to the Greaves West & Ayre of £500 (2022: £500) for independent examination fees.
None of the directors and trustees (or any persons connected with them) received any remuneration (2022: £Nil) or expenses (2022: £Nil) during the year.
The average monthly number of employees during the year was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The income funds of the charitable company include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
Tangible Fixed Asset Fund
Grants and donations were received by the charitable company specifically to fund capital expenditure on plant and equipment to assist with Community Projects. Similarly, depreciation relating to this plant and equipment is allocated to this fund in order to represent the assets net book value.
Shop Renovation Fund
The Shop Renovation Fund has been set-up by the charitable company in order to allocate all those grants and donations received during the year which are specifically for the shop renovation project.
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.
Unrestricted funds
Restricted capital fund
During the year, the charitable company paid £131 (2022: £159) to a director and trustee for field maintenance and grass cutting incurred. At the year end, £Nil (2022: £Nil) remained outstanding.