REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
REPORT OF THE TRUSTEES AND |
UNAUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
FOR |
ILEACH LIMITED |
REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
REPORT OF THE TRUSTEES AND |
UNAUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
FOR |
ILEACH LIMITED |
ILEACH LIMITED |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the year ended 31 MARCH 2023 |
Page |
Report of the Trustees | 1 | to | 3 |
Independent Examiner's Report | 4 |
Statement of Financial Activities | 5 |
Balance Sheet | 6 | to | 7 |
Notes to the Financial Statements | 8 | to | 14 |
ILEACH LIMITED (REGISTERED NUMBER: SC237949) |
REPORT OF THE TRUSTEES |
for the year ended 31 MARCH 2023 |
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2023. The trustees have adopted the provisions of 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 |
Objectives and aims |
The charity's objects as set out in its memorandum and articles of association are: |
(1) To advance education by the provision of training, especially ICT skills, and other services and to relieve poverty; |
(2) To advise and assist individuals in obtaining employment, developing career opportunities, pursuing additional training and starting their own business; |
(3) To provide for the community, information technology related to the services which are normally available; |
(4) To encourage the voluntary sector to use the new technology to enhance their own prospect of promotion, marketing and funding; |
(5) To promote, establish and operate other schemes of a charitable nature for the benefit of the community within the operating area; |
(6) To promote economic and social development for the benefit of the general public; |
(7) To publish and market the 'Ileach newspaper' and other publications; |
(8) To provide printing, publishing and other services locally and at reasonable cost for community organisations and local businesses. |
Significant activities |
With the far-reaching impacts of the Coronavirus pandemic finally beginning to ease, the trustees were pleased to be able to broaden the scope of the charity's activities rather than having to focus solely on its core function; viz. publication of "The Ileach" newspaper, on its regular, fortnightly schedule. Notably, the Charity was able to collaborate with Islay High School on the provision of a course on journalism. |
ACHIEVEMENT AND PERFORMANCE |
Charitable activities |
During the year the charity has: |
- to advance education through work with Islay High School |
- worked hard to ensure that "The Ileach" newspaper remained a major source of information for local people. |
- to provide printing, copying, publishing, passport photographs at a reasonable cost to the local community. |
FINANCIAL REVIEW |
Financial position |
Over the past number of years, the trustees have focussed on opportunities to grow the income received from advertising; the principal source of revenue for the charity being advertising from local businesses. This had been identified as a significant milestone on the way to making the charity's financial position more robust. |
The trustees are, therefore, pleased to report that, for the second year in a row, income from advertising has increased; from £33,861 in 2021, to £48,694 in 2022 and now to £50,590 in 2023. |
That said, the trustees will continue to evaluate the opportunities to increase revenue and reduce costs; in particular, as a result of unforeseen levels of inflation. |
Principal funding sources |
The principal funding source of the charity is from the surpluses generated from sales of "The Ileach," advertising revenue, subscriptions, shop and other sales, and grant income. |
The capital grant from the Co-op Local Community Fund was used to purchase new printing equipment. This now allows colour editions of The Ileach to be produced at a cost which is not prohibitive. Moreover, this equipment will be significantly more cost effective over its working life. |
ILEACH LIMITED (REGISTERED NUMBER: SC237949) |
REPORT OF THE TRUSTEES |
for the year ended 31 MARCH 2023 |
FINANCIAL REVIEW |
Reserves policy |
The trustees have examined the charity's requirements for reserves in light of the main risks to the organisation. In doing so they considered the reason why the company needs restricted and unrestricted funds, the level of these reserves required and the steps to be taken in order to establish and maintain reserves at the required level. |
The target set by the trustees is to build up reserves equivalent to three months running costs. At the date of the balance sheet, there are total funds of £55,299, of which £55,299 are unrestricted, which suggests the reserves target has been met. |
Going concern |
The trustees are confident that the charity is on a sound financial footing and will be able to continue to operate for at least the next 12 months; from the date of signing the accounts. |
The charity therefore continues to adopt the going concern basis in preparing its financial statements. |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Governing document |
Ileach Limited is a charitable company limited by guarantee, incorporated on 10th October 2002. The charity was established under a memorandum of association, which establishes the objects and powers of the company and is governed under its articles of association. |
In the event of the company being wound up members may be required to contribute an amount not exceeding £1. |
Recruitment and appointment of new trustees |
Any member who wishes to be considered for election as a trustee at an annual general meeting must lodge with the company a written notice confirming that they are willing to be appointed. The notice must be signed by them and lodged with the company at least seven days before the date of the annual general meeting. |
At the Annual General Meeting, trustees appointed since the last AGM have to retire from office, but can be considered for re-election if they so wish. Of the remaining Trustees, the three that have been longest in office have to retire from office, but can be considered for re-election if they so wish. |
Related parties |
The company is a stand-alone charity. |
REFERENCE AND ADMINISTRATIVE DETAILS |
Registered Company number |
Registered Charity number |
Registered office |
Trustees |
ILEACH LIMITED (REGISTERED NUMBER: SC237949) |
REPORT OF THE TRUSTEES |
for the year ended 31 MARCH 2023 |
REFERENCE AND ADMINISTRATIVE DETAILS |
Independent Examiner |
Thomas Barrie & Co LLP |
Atlantic House |
1a Cadogan Street |
Glasgow |
G2 6QE |
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies. |
Approved by order of the board of trustees on |
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF |
ILEACH LIMITED |
I report on the accounts for the year ended 31 March 2023 set out on pages five to fourteen. |
Respective responsibilities of trustees and examiner |
The charity's trustees are responsible for the preparation of the accounts in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). The charity's trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the Accounts Regulations does not apply. It is my responsibility to examine the accounts as required under Section 44(1)(c) of the Act and to state whether particular matters have come to my attention. |
Basis of the independent examiner's report |
My examination was carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations 2006. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as 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 accounts. |
Independent examiner's statement |
In connection with my examination, no matter has come to my attention : |
(1) | which gives me reasonable cause to believe that, in any material respect, the requirements |
- | 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 accounts which accord with the accounting records and to comply with Regulation 8 of the 2006 Accounts Regulations |
have not been met; or |
(2) | to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. |
Martin Greig BA |
The Institute of Chartered Accountants of Scotland |
Thomas Barrie & Co LLP |
Atlantic House |
1a Cadogan Street |
Glasgow |
G2 6QE |
22 December 2023 |
ILEACH LIMITED |
STATEMENT OF FINANCIAL ACTIVITIES |
for the year ended 31 MARCH 2023 |
2023 | 2022 |
Unrestricted | Restricted | Total | Total |
funds | fund | funds | funds |
Notes | £ | £ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies |
Charitable activities |
Other trading activities | 2 |
Total |
EXPENDITURE ON |
Raising funds |
Charitable activities |
Total |
NET INCOME/(EXPENDITURE) | ( |
) | ( |
) |
Transfers between funds | 11 | 10,045 | (10,045 | ) | - | - |
Net movement in funds | ( |
) | ( |
) | ( |
) |
RECONCILIATION OF FUNDS |
Total funds brought forward |
TOTAL FUNDS CARRIED FORWARD | 69,005 |
ILEACH LIMITED (REGISTERED NUMBER: SC237949) |
BALANCE SHEET |
31 MARCH 2023 |
2023 | 2022 |
Unrestricted | Restricted | Total | Total |
funds | fund | funds | funds |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 7 |
CURRENT ASSETS |
Stocks | 8 |
Debtors | 9 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 10 | ( |
) | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
NET ASSETS |
FUNDS | 11 |
Unrestricted funds | 58,960 |
Restricted funds | 10,045 |
TOTAL FUNDS | 69,005 |
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2023. |
The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2023 in accordance with Section 476 of the Companies Act 2006. |
The trustees acknowledge their responsibilities for |
(a) | ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company. |
ILEACH LIMITED (REGISTERED NUMBER: SC237949) |
BALANCE SHEET - continued |
31 MARCH 2023 |
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. |
The financial statements were approved by the Board of Trustees and authorised for issue on |
ILEACH LIMITED |
NOTES TO THE FINANCIAL STATEMENTS |
for the year ended 31 MARCH 2023 |
1. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
The presentational and functional currency of the financial statements is Pounds Sterling (£). |
Going concern |
After reviewing the charity's forecasts and projections, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. |
The charity therefore continues to adopt the going concern basis in preparing its financial statements. |
Financial reporting standard 102 - reduced disclosure exemptions |
The charitable company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland': |
• | the requirements of Section 7 Statement of Cash Flows. |
Critical accounting judgements and key sources of estimation uncertainty |
In preparing these financial statements, the trustees are required to make judgements, estimates and assumptions that affect the application of the Charity's accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively. |
There are no significant judgements or estimates included in these accounts |
Income |
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received, and the amount can be measured reliably. |
Income includes funds generated from the sale of goods, services provided and subscriptions. |
Sale of Goods |
Revenue is recognised when the significant risks and rewards of ownership have been transferred to the customer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably, there is no continuing management involvement with the goods, and the amount of revenue can be measured reliably. |
Services |
Income from services is recognised when performed, such that risks and rewards have been transferred. |
Government grants - COVID |
COVID related local authority grant funding is recognised on receipt, whereas grant funding received in relation to the Job Retention Scheme is recognised in the period in which the associated wages are paid. |
Grants |
Grants are recognised when the charity has been notified in writing of both the amount and settlement date. Grants are deferred if terms or conditions must be met before the charity has entitlement to the resources. |
ILEACH LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 MARCH 2023 |
1. | ACCOUNTING POLICIES - continued |
Expenditure |
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Freehold property | - |
Fixtures and fittings | - |
Computer equipment | - |
Property is not being depreciated as the trustees are of the opinion that the market value is greater than the carrying value in the accounts. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
The charity is exempt from corporation tax on its charitable activities. |
Fund accounting |
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. |
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. |
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. |
Pension costs and other post-retirement benefits |
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. |
Financial instruments |
The charity has financial assets and financial liabilities of a kind that qualify as basic financial instruments. |
Debtors |
Short term debtors are measured at transaction price, less any impairment. |
Cash and cash equivalents |
Cash and cash equivalents comprises cash balances. |
Creditors |
Short term trade creditors are measured at the transaction price. |
Provisions |
Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as a finance cost. |
ILEACH LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 MARCH 2023 |
2. | OTHER TRADING ACTIVITIES |
2023 | 2022 |
£ | £ |
Advertising sales |
Shop sales | 30,377 | 28,472 |
3. | NET INCOME/(EXPENDITURE) |
Net income/(expenditure) is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets |
4. | TRUSTEES' REMUNERATION AND BENEFITS |
There were no trustees' remuneration or other benefits for the year ended 31 March 2023 nor for the year ended 31 March 2022. |
Trustees' expenses |
There were no trustees' expenses paid for the year ended 31 March 2023 nor for the year ended 31 March 2022. |
5. | STAFF COSTS |
The average monthly number of employees during the year was as follows: |
2023 | 2022 |
Staff |
The charity considers its key management personnel comprises the Printer and Office Manager, Receptionist and Bookkeeper. The total employment benefits including employer pension contributions of the key management personnel were £43,849 (2022: £41,183). |
6. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES |
Unrestricted | Restricted | Total |
funds | fund | funds |
£ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Charitable activities |
Other trading activities |
Total |
EXPENDITURE ON |
Raising funds |
ILEACH LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 MARCH 2023 |
6. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued |
Unrestricted | Restricted | Total |
funds | fund | funds |
£ | £ | £ |
Charitable activities |
Total |
NET INCOME |
RECONCILIATION OF FUNDS |
Total funds brought forward | 38,124 | 10,045 |
TOTAL FUNDS CARRIED FORWARD | 58,960 | 10,045 | 69,005 |
7. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | and | Computer |
property | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2022 |
Additions |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
ILEACH LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 MARCH 2023 |
8. | STOCKS |
2023 | 2022 |
£ | £ |
Stocks |
9. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
VAT |
Prepayments |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade creditors |
Social security and other taxes |
VAT | - | 1,283 |
Accrued expenses |
11. | MOVEMENT IN FUNDS |
Net | Transfers |
movement | between | At |
At 1.4.22 | in funds | funds | 31.3.23 |
£ | £ | £ | £ |
Unrestricted funds |
General fund | 58,960 | (12,256 | ) | (4,455 | ) | 42,249 |
Fixed assets | - | (1,450 | ) | 14,500 | 13,050 |
(13,706 | ) |
Restricted funds |
Co-op Community Fund | 10,045 | - | (10,045 | ) | - |
TOTAL FUNDS | (13,706 | ) | 55,299 |
Net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 117,764 | (130,020 | ) | (12,256 | ) |
Fixed assets | - | (1,450 | ) | (1,450 | ) |
( |
) | (13,706 | ) |
TOTAL FUNDS | ( |
) | (13,706 | ) |
ILEACH LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 MARCH 2023 |
11. | MOVEMENT IN FUNDS - continued |
Comparatives for movement in funds |
Net |
movement | At |
At 1.4.21 | in funds | 31.3.22 |
£ | £ | £ |
Unrestricted funds |
General fund | 38,124 | 20,836 | 58,960 |
Restricted funds |
Co-op Community Fund | 10,045 | - | 10,045 |
TOTAL FUNDS | 48,169 | 20,836 | 69,005 |
Comparative net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 141,611 | (120,775 | ) | 20,836 |
TOTAL FUNDS | 141,611 | (120,775 | ) | 20,836 |
PURPOSE OF FUNDS |
General |
The General Fund includes all income generated by the charity, which can be used in any way to further the objectives and aims of the charity. |
Fixed assets |
This represents any assets that have been capitalised and highlights that these funds are not available for distribution, the balance represents the NBV of the assets. |
Restricted |
The Co-op Community Fund - for the replacement of printing equipment. |
Transfers between funds |
The Co-op Community Fund grant has now been used to purchase printing equipment, the remaining balance was met by the General fund. the total value of the equipment has now been transferred to a designated fixed assets fund. |
ILEACH LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 MARCH 2023 |
12. | RELATED PARTY DISCLOSURES |