The directors 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 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)” (as issued in October 2019 for accounting periods commencing from 1 January 2019)
The trust's objects are to assist in the relief of human suffering and distress and assist in projects charitable in law beneficial to the community.
There has been no change in the objects or the policies adopted in furtherance of the objects during the year.
The directors have continued to support organisations within the local community and others with connections to the local community.
The charity have reserves in excess of any outstanding grants and will adjust future awards to suit the circumstances at the time ensuring the charity remains a going concern.
The charity invests in activities at the discretion of the directors, focusing on local activities, needs and requests for support.
The management of the fund continues to be carried out by Rathbone Investment Management who advise the directors on the portfolio.
Funds in deposit are kept available to support the charity's obligations.
The directors meet annually to plan the objectives for the year ahead, and at other times as required, to review the current status and ensure the objectives of the charity are met.
The directors originally intended that the charity's funds will be expended in fulfilment of its charitable objectives over a ten year period, however the directors have now agreed that there should be no time limit placed on the potential life of the charity or the period over which the funds will be expended. The directors are actively seeking community and charity projects where they feel they can provide assistance.
The directors who served during the year and up to the date of signature of the financial statements were:
New directors are given an induction from the existing directors about the background and objects of the charity. No formal training is deemed to be required.
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
The directors' report was approved by the Board of Directors.
I report on the financial statements of the trust for the year ended 31 May 2023, which are set out on pages 4 to 11.
The trust’s directors, who also act as trustees for the charitable activities of The May Lockhart Trust, 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 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.
The May Lockhart Trust is a private company limited by guarantee incorporated in Scotland. The registered office is St Vincent Plaza, 319 St Vincent Street, Glasgow, G2 5RZ.
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)” (as issued in October 2019 for accounting period commencing from 1 January 2019). The trust is a Public Benefit Entity as defined by FRS 102.
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 trust. Monetary amounts in these financial statements are rounded to the nearest £.
The accounts have been prepared under the historical cost convention, modified to include the revaluation of 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 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.
Cash donations are recognised on receipt. Other donations are recognised once 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.
Expenditure is included on an accruals basis.
Costs of Generating funds comprises all costs and expenses considered to relate directly to achieving and maintaining the objects of The May Lockhart Trust.
Grants and donations payable are decided by the management committee and recorded on an accruals basis.
Governance costs are those costs incurred to allow the management committee to manage and organise the charity on a day to day basis, maintain quality standards, and comply with statutory obligations.
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.
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, 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.
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 trust is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
In the application of 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.
Accountancy
Legal fees
Printing & stationery
Governance costs includes payments to the accountants of £500 (2022- £500) for examination fees
Mrs Kathryn Fegan received a total of £123 (2022 - £nil) in reimbursed expenses for postage costs.
No other directors (or any persons connected with them) received any remuneration or expenses during the year.
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.
The listed investments have a historical cost value of £110,778 (2022 £118,895).
Mrs Kathryn Fegan is a director of Friends of Portencross Castle. During the year the charity issued a donation to this charity amounting to £940 (2022 £nil). The charity supports the purchase, maintenance and restoration of the castle ruin.
Mrs Kathryn Fegan was not involved in the decision to award any of the grants described above.