REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
REPORT OF THE TRUSTEES AND |
UNAUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 AUGUST 2023 |
FOR |
WESTERN ISLES DEVELOPMENT TRUST |
REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
REPORT OF THE TRUSTEES AND |
UNAUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 AUGUST 2023 |
FOR |
WESTERN ISLES DEVELOPMENT TRUST |
WESTERN ISLES DEVELOPMENT TRUST |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 AUGUST 2023 |
Page |
Report of the Trustees | 1 | to | 5 |
Independent Examiner's Report | 6 |
Statement of Financial Activities | 7 |
Balance Sheet | 8 | to | 9 |
Notes to the Financial Statements | 10 | to | 15 |
WESTERN ISLES DEVELOPMENT TRUST (REGISTERED NUMBER: SC271462) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 AUGUST 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 August 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 main objectives of the charity are: |
- the prevention or relief of poverty in the Western Isles (the "Western Isles Community") including, without limitation, the provision of support and grants to organisations and individuals working to prevent or relieve poverty including through energy efficient schemes and: |
- the advancement of education including, without limitation, the provision, maintenance and improvement of educational facilities and raising awareness in relation to energy and energy-related issues that are driving global, national and local change; |
- the advancement of environmental protection or improvement, including, without limitation, supporting a forward-looking environmental enhancement approach and the provision, maintenance and improvement of environmental facilities; |
- the advancement of citizenship and community development including, without limitation, urban or rural regeneration, maintenance and improvement of the physical and social infrastructure within the environs of the Western Isles, including supporting the aspirations of local communities and the provision, maintenance and improvement of recreational facilities; |
- the advancement of the arts, heritage, culture or science including, without limitation, the provision, maintenance and improvement of recreational and cultural facilities and raising awareness of the Gaelic language; and |
- animal welfare. |
WESTERN ISLES DEVELOPMENT TRUST (REGISTERED NUMBER: SC271462) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 AUGUST 2023 |
OBJECTIVES AND ACTIVITIES |
Grantmaking |
Grants awarded to: | Amount - £ |
North Lochs Community Council | 2000 |
Uig School Parent Council | 665 |
Clan Macquarrie Community Centre | 1000 |
Uig Community Centre | 1000 |
Buth Bharraigh | 1635 |
Cothrom | 1000 |
North Lochs Community Association | 10000 |
Carloway Community Association | 2000 |
Comunn Eachdraidh Eirisgeidh | 10000 |
North Lochs Community Centre | 2000 |
Caladh Trust | 1000 |
Urras Coimhearsnachd Bhradhagair agus Arnoil | 2000 |
Uist Council of Voluntary Organisations | 2000 |
Scalpay Community Association | 2000 |
Sandwick Hall | 1000 |
Sgoil Dhalabroig | 2000 |
Comunn Eachdraidh Nis | 2000 |
Barra Children's Centre | 1700 |
Caradean Uibhist | 2000 |
Urras Sgire Oighreachd Bharabhais | 1000 |
West Harris Trust | 2000 |
North Uist Agricultural Show | 5000 |
Garadh a'Bhagh a'Tuath | 10000 |
Western Isles Foyer | 1000 |
66000 |
Youth Summer Activities Fund 2023 |
Who Cares? Scotland | 964 |
Comunn Eachdraidh Sgire a'Bhac | 1000 |
Cothrom | 1000 |
Action for Children | 1000 |
Barra Children's Centre | 1000 |
Barra and Vatersay Junior Sports Club | 1000 |
Barra Youth Café | 1000 |
Point Youth Club and Youth Café | 990 |
Western Isles Explorers | 600 |
Southend Football Club | 1000 |
Stornoway Free Church | 700 |
Askernish Golf Club | 1000 |
Barra Clay Pigeon Club | 850 |
Feis Bharraigh | 1000 |
Dochas Dancers | 500 |
Comunn na Gaidhlig - LR | 700 |
Comunn na Gaidhlig - FMK | 1000 |
Comunn na Gaidhlig - MNI | 1000 |
Comunn na Gaidhlig - SNA | 1000 |
Comunn na Gaidhlig - KP | 1000 |
Comunn na Gaidhlig - CMD | 1000 |
19304 |
TOTAL | 85304 |
WESTERN ISLES DEVELOPMENT TRUST (REGISTERED NUMBER: SC271462) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 AUGUST 2023 |
ACHIEVEMENT AND PERFORMANCE |
Charitable activities |
The purpose of the Trust is to support the regeneration and development of the Outer Hebrides through disbursement of community benefit secured from the local deployment of renewable energy installations. This community benefit will come from a range of technologies, predominately onshore wind, offshore wind, wave and tidal. Over time and as grid connectivity allows, the Trust will expand its activities to support community ownership of large scale renewable energy infrastructure with the objective of addressing fuel poverty through access to locally generated "green" electricity. |
FINANCIAL REVIEW |
Principal funding sources |
The activities of Western Isles Development Trust were severely disrupted due to the failure of the subsea electricity cable connecting the Outer Hebrides to the Scottish mainland in October 2020. Electricity grid operator, Scottish and Southern Electricity Networks (SSEN), completed the project to replace the cable at the end of August 2021 and gradually returned the network to normal operation shortly thereafter. |
Replacement of the cable should ensure that funding streams from windfarms based in the Outer Hebrides will resume on the same terms as previously agreed upon. |
Reserves policy |
The general fund represents the unrestricted funds from past operating results. It also represents the free reserves of the charity. The trustees consider that the level of the free reserves in unrestricted funds at 31 August 2023 is sufficient to meet the operational requirements of the charity as presently structured. |
During the year, the charity's outgoing resources exceeded incoming resources resulting in net expenditure of £39,063 for the period (2022 - net expenditure of £143,227). This results in an increase of £20 in unrestricted funds and a decrease of £39,083 in restricted funds. Unrestricted reserves has as a result increased to £344. |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Governing document |
The Association is a charitable company limited by guarantee, incorporated on 2 August 2004 and registered as a charity with effect from 11 February 2014. 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. |
Recruitment and appointment of new trustees |
The directors of the company are also charity trustees for the purpose of charity law. |
Under the terms of the Memorandum and Articles of Association, unless otherwise determined by ordinary resolution of the company, the number of directors shall not be more than 20 and not less than 7. Where there are only 7 directors appointed, 2 of those 7 directors must be elected directors. |
The nominated members shall be entitled to appoint up to a maximum of 12 people to be directors of the company. |
The ordinary members shall be entitled to appoint 8 directors of the company and, unless otherwise determined by the directors:- |
- two directors appointed by the ordinary members shall, in the case of an individual, be ordinarily resident in Barra or, in the case of a corporate body, shall have a presence in Barra, and: |
- two directors appointed by the ordinary members shall, in the case of an individual, be ordinarily resident in Harris or, in the case of a corporate body, shall have a presence in Harris, and: |
- two directors appointed by the ordinary members shall, in the case of an individual, be ordinarily resident in Lewis or, in the case of a corporate body, shall have a presence in Lewis, and: |
- two directors appointed by the ordinary members shall, in the case of an individual, be ordinarily resident in Uist or, in the case of a body corporate, shall have a presence in Uist. |
Subject to Article 23, each elected director shall serve for a maximum period of three years from the date of appointment as a director. At the end of this period, that elected director shall immediately resign but shall be eligible for re-appointment for subsequent periods of up to three years. |
WESTERN ISLES DEVELOPMENT TRUST (REGISTERED NUMBER: SC271462) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 AUGUST 2023 |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Organisational structure |
The board consists of voluntary directors who manage the affairs of the charity through regular board meetings. The board members are heavily involved in the day to day operations of the charity. |
Induction and training of new trustees |
The charity will train trustees as necessary to ensure awareness and understanding of:- |
- the responsibilities of directors; |
- the organisational structure of the charity; |
- the financial position of the charity; and |
- the future plans and objectives of the charity. |
REFERENCE AND ADMINISTRATIVE DETAILS |
Registered Company number |
Registered Charity number |
Registered office |
Trustees |
M J W Logan (appointed 19.10.22) |
Mrs K A Macleod (appointed 23.3.23) |
WESTERN ISLES DEVELOPMENT TRUST (REGISTERED NUMBER: SC271462) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 AUGUST 2023 |
REFERENCE AND ADMINISTRATIVE DETAILS |
Independent Examiner |
Calum Macdonald |
CIB Services |
Chartered Accountants |
63 Kenneth Street |
Stornoway |
Isle of Lewis |
Western Isles |
HS1 2DS |
Bankers |
Stornoway |
Isle of Lewis |
HS1 2XH |
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 |
WESTERN ISLES DEVELOPMENT TRUST |
I report on the accounts for the year ended 31 August 2023 set out on pages seven to fifteen. |
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. |
Calum Macdonald |
The Institute of Chartered Accountants of Scotland |
CIB Services |
Chartered Accountants |
63 Kenneth Street |
Stornoway |
Isle of Lewis |
Western Isles |
HS1 2DS |
31 July 2024 |
WESTERN ISLES DEVELOPMENT TRUST |
STATEMENT OF FINANCIAL ACTIVITIES |
(INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) |
FOR THE YEAR ENDED 31 AUGUST 2023 |
31.8.23 | 31.8.22 |
Unrestricted | Restricted | Total | Total |
fund | funds | funds | funds |
Notes | £ | £ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies | 2 |
Investment income | 3 |
Total |
EXPENDITURE ON |
Charitable activities | 4 |
NET INCOME/(EXPENDITURE) | ( |
) | ( |
) | ( |
) |
RECONCILIATION OF FUNDS |
Total funds brought forward |
TOTAL FUNDS CARRIED FORWARD | 145,790 |
WESTERN ISLES DEVELOPMENT TRUST (REGISTERED NUMBER: SC271462) |
BALANCE SHEET |
31 AUGUST 2023 |
31.8.23 | 31.8.22 |
Notes | £ | £ |
CURRENT ASSETS |
Debtors | 9 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 10 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
NET ASSETS |
FUNDS | 12 |
Unrestricted funds | 324 |
Restricted funds | 145,466 |
TOTAL FUNDS | 145,790 |
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2023. |
The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 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. |
WESTERN ISLES DEVELOPMENT TRUST (REGISTERED NUMBER: SC271462) |
BALANCE SHEET - continued |
31 AUGUST 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 |
WESTERN ISLES DEVELOPMENT TRUST |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 AUGUST 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 financial statements are prepared in sterling which is the functional currency of the charity and are rounded to the nearest £. |
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. The trustees also consider that there are no significant areas of judgements, estimates or key assumptions that affect items in the accounts. |
Financial reporting standard 102 - reduced disclosure exemptions |
The charitable company has taken advantage of the following disclosure exemption 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. |
Income |
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. |
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. |
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure. |
Charitable activities |
Charitable expenditure comprises those costs incurred by the charity in the delivery of its objects and activities. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. The allocation of direct and support costs are analysed in the notes to the financial statements. |
Governance costs |
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include accountancy fees and costs linked to the strategic management of the charity. |
Allocation and apportionment of costs |
All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis e.g. estimated usage. |
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. |
WESTERN ISLES DEVELOPMENT TRUST |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
1. | ACCOUNTING POLICIES - continued |
Fund accounting |
Designated funds are unrestricted funds earmarked by the trustees for particular purposes. |
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. |
2. | DONATIONS AND LEGACIES |
31.8.23 | 31.8.22 |
£ | £ |
Donations |
Subscriptions |
3. | INVESTMENT INCOME |
31.8.23 | 31.8.22 |
£ | £ |
Interest receivable |
All investment income arises from assets held within the UK. |
4. | CHARITABLE ACTIVITIES COSTS |
Grant |
funding of |
activities | Support |
Direct | (see note | costs (see |
Costs | 5) | note 6) | Totals |
£ | £ | £ | £ |
Charitable Activities | 2,520 | 85,304 | 1,044 | 88,868 |
5. | GRANTS PAYABLE |
31.8.23 | 31.8.22 |
£ | £ |
Charitable Activities | 85,304 | 183,870 |
WESTERN ISLES DEVELOPMENT TRUST |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
6. | SUPPORT COSTS |
Governance |
costs |
£ |
Charitable Activities | 1,044 |
Support costs, included in the above, are as follows: |
31.8.23 | 31.8.22 |
Charitable | Total |
Activities | activities |
£ | £ |
Accountancy and legal fees | 1,044 | 924 |
7. | TRUSTEES' REMUNERATION AND BENEFITS |
There were no trustees' remuneration or other benefits for the year ended 31 August 2023 nor for the year ended 31 August 2022. |
Trustees' expenses |
There were no trustees' expenses paid for the year ended 31 August 2023 nor for the year ended 31 August 2022. |
8. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES |
Unrestricted | Restricted | Total |
fund | funds | funds |
£ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies |
Investment income |
Total |
EXPENDITURE ON |
Charitable activities |
NET INCOME/(EXPENDITURE) | ( |
) | ( |
) |
RECONCILIATION OF FUNDS |
Total funds brought forward | 304 | 288,713 |
TOTAL FUNDS CARRIED FORWARD | 324 | 145,466 | 145,790 |
WESTERN ISLES DEVELOPMENT TRUST |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
9. | DEBTORS |
31.8.23 | 31.8.22 |
£ | £ |
Amounts falling due within one year: |
Loans receivable | 1,250 | 1,250 |
Prepayments and accrued income |
Amounts falling due after more than one year: |
Loans receivable |
Aggregate amounts |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.8.23 | 31.8.22 |
£ | £ |
Other creditors |
Accrued expenses |
11. | ANALYSIS OF NET ASSETS BETWEEN FUNDS |
31.8.23 | 31.8.22 |
Unrestricted | Restricted | Total | Total |
fund | funds | funds | funds |
£ | £ | £ | £ |
Current assets |
Current liabilities | ( |
) | ( |
) | ( |
) | ( |
) |
344 | 106,383 | 106,727 | 145,790 |
12. | MOVEMENT IN FUNDS |
Net |
movement | At |
At 1.9.22 | in funds | 31.8.23 |
£ | £ | £ |
Unrestricted funds |
General fund | 324 | 20 | 344 |
Restricted funds |
Restricted fund | 145,466 | (39,083 | ) | 106,383 |
TOTAL FUNDS | (39,063 | ) | 106,727 |
WESTERN ISLES DEVELOPMENT TRUST |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
12. | MOVEMENT IN FUNDS - continued |
Net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 20 | - | 20 |
Restricted funds |
Restricted fund | 49,785 | (88,868 | ) | (39,083 | ) |
TOTAL FUNDS | ( |
) | (39,063 | ) |
Comparatives for movement in funds |
Net |
movement | At |
At 1.9.21 | in funds | 31.8.22 |
£ | £ | £ |
Unrestricted funds |
General fund | 304 | 20 | 324 |
Restricted funds |
Restricted fund | 233,813 | (88,347 | ) | 145,466 |
Transocean Fund | 54,900 | (54,900 | ) | - |
288,713 | (143,247 | ) | 145,466 |
TOTAL FUNDS | 289,017 | (143,227 | ) | 145,790 |
Comparative net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 20 | - | 20 |
Restricted funds |
Restricted fund | 44,268 | (132,615 | ) | (88,347 | ) |
Transocean Fund | - | (54,900 | ) | (54,900 | ) |
44,268 | (187,515 | ) | (143,247 | ) |
TOTAL FUNDS | 44,288 | (187,515 | ) | (143,227 | ) |
WESTERN ISLES DEVELOPMENT TRUST |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
12. | MOVEMENT IN FUNDS - continued |
FUNDS |
General fund |
The general fund represents unrestricted funds which the trustees are free to use in accordance with the charitable objects. |
Restricted fund |
This represents community benefit funds secured from the local deployment of renewable energy installations. The funds will be utilised to support the regeneration and development of the Outer Hebrides. |
Transocean fund |
This represents funds gifted from Transocean Ltd held for distribution to individuals and the communities of Dalmore and Dalbeg. |
13. | RELATED PARTY DISCLOSURES |
14. | LIMITED BY GUARANTEE |
The company is limited by guarantee and has no share capital. The liability of each member, in the event of the company being wound up, is restricted to £1. |
15. | PERMANENT ENDOWMENTS |
The charity does not have any permanent endowments. |