Scottish charity number SC008403
Company registration number SC101235
HIGHLAND HISTORIC BUILDINGS TRUST
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
HIGHLAND HISTORIC BUILDINGS TRUST
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
A M Bennett
K A Johnston
J H MacDonald
M MacGruer
M A C Miers
H W Munro
J R Smith
Cllr A Sinclair - Highland Council Nominee
Cllr W A Boyd - Highland Council Nominee
Honorary President
A L Gunn
Secretary
D R R Graham
Charity number (Scotland)
SC008403
Company number
SC101235
Registered office
Redwood
19 Culduthel Road
Inverness
IV2 4AA
Independent examiner
Rhona Wilson BA, FCCA
MacKenzie Kerr Limited
Chartered Accountants
Redwood
19 Culduthel Road
Inverness
IV2 4AA
HIGHLAND HISTORIC BUILDINGS TRUST
CONTENTS OF THE FINANCIAL STATEMENTS
Page
Trustees' report
1 - 4
Independent examiner's report
5
Statement of financial activities
6
Balance sheet
7
Notes to the financial statements
8 - 13
HIGHLAND HISTORIC BUILDINGS TRUST
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 1 -

The trustees present their annual report and financial statements for the period ended 31 December 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)" (effective 1 January 2019).

Objectives and activities
Public benefit

The Trust's objects are:

 

To promote and encourage, either on its own or in conjunction with others, the maintenance and improvement of the amenity of the geographical area of the Highlands and Islands, and the protection and preservation of the area's landscape and historical and architectural heritage, by any means and, in particular, by the acquisition of such lands and buildings of historical, architectural or constitutional interest as the Council of Management for the time being of the Trust may select for the purpose of restoration and sale or lease, subject to such legally valid restrictions as will ensure preservation of such lands and buildings.

 

The principal activities employed to achieve the Trust's objectives are as follows:

 

 

 

 

 

 

 

HIGHLAND HISTORIC BUILDINGS TRUST
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 2 -
Achievements and performance
Significant activities and achievements against objectives

Throughout the period, the work carried out was following up the feasibility study into Viewhill House with discussions continuing with interested parties, and work on the Easter Ross and Black Isle Churches Trail which was launched at the Highland Family Heritage Day on 23 September 2023. The Trustees wish to record their grateful thanks to Mary Miers, one of the Trustees, for her sterling work in the authorship and editing of the Trail website – easterrosschurches.co.uk.

Since its incorporation, completed projects have ranged from options appraisals/feasibility studies, pilot projects, managing emergency works to stabilise historic ruins, to rescuing derelict buildings and their conversion to residential units.

Originally operating as a ‘restorer of last resort’, HHBT’s focus is increasingly on facilitating community involvement in the adaptive re-use of historic buildings. By working at a strategic level, the Trust supports local community groups to undertake the work at operational level.

In recent times, HHBT has been approached by and worked with a number of community groups/individuals anxious to undertake the adaptive re-use of mainly, but not exclusively, listed buildings currently in a poor state of repair. These approaches have identified that within the Highlands and Islands there is no organisation able to provide initial input to enable those concerned to progress their interest.

HHBT will continue to explore opportunities and potential sources of funding on its own and in partnership with others, where this will assist in bringing buildings at risk and other redundant, underused or needy buildings in the Highlands and Islands back to life. Further information on the work of the Trust can be found at https://highlandhbt.org.uk.

Financial review

The main sources of income and expenditure during the period are shown in the accounts. During the year, the company recorded a deficit of £1,362 (2022 - deficit for the year £632) in unrestricted funds, leaving a balance at the year end of £386 (2022 - £1,748).

Reserves policy

It is the policy of the Trust 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 trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Trust’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 period.

 

Restricted funds of £1,165 are held for the purpose of the Easter Ross Churches Heritage Trail.

Major risks

Risk management

The trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the Trust, and are satisfied that systems are in place to mitigate its exposure to the major risks. Risk assessments are completed on a project basis which comprise:

 

1 review of the risks which the Trust may face;    

2 the establishment of systems and procedures to mitigate those risks identified; and    

3 risks materialise, the implementation of procedures designed to minimise any potential impact on the Trust

should any of those risks materialise.

Plans for future periods

The current funding climate is proving challenging for HHBT given the clawback policies operated by funders and the ineligibility for funding of projects with a residential end use. That said, HHBT remain the only Historic Buildings Trust in the Highlands and Islands and the increasing number of buildings at risk and requests for our consultancy services demonstrates an ongoing need.

HIGHLAND HISTORIC BUILDINGS TRUST
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 3 -
Structure, governance and management

The Trust is a company limited by guarantee, governed by its Memorandum and Articles of Association dated 8 October 1986 as amended by special resolution dated 13 November 1998. It is registered as a charity with the Office of the Scottish Charity Regulator. There are two categories of membership; Corporate Membership and Individual Membership. Each member undertakes to contribute an amount not exceeding £1 in the event of the charity being wound up.

The trustees, who are also the directors for the purpose of company law, and who served during the period and up to the date of signature of the financial statements were:

 

J T Duncan
(Resigned 31 October 2023)
A M Bennett
C Duguid
(Resigned 20 December 2023)
K A Johnston
J H MacDonald
M MacGruer
M A C Miers
H W Munro
J R Smith
Cllr A Sinclair - Highland Council Nominee
Cllr W A Boyd - Highland Council Nominee
Recruitment and appointment of trustees

There are two categories of trustee; Nominated Trustee and Elected Trustee. Nominated Trustees are appointed by the Highland Council and serve from appointment until the conclusion of each elected term and are then eligible for reappointment.

 

The Trust may elect as an Elected Trustee any individual member who has given notice of willingness to accept appointment. The trustees may appoint any individual member to be an Elected Trustee at any time either to fill a vacancy or as an additional trustee.

 

The trustees may at any time appoint any non member other than an employee of the company to be an expert adviser, where the trustees consider that they have special skills or experience which would be of assistance to the board.

 

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

Organisational structure

Trustees shall be appointed to the offices of Chair and any other offices which the trustees may consider appropriate, these appointments being made at meetings of trustees. Each office shall be held until the conclusion of the annual general meeting which follows the appointment, but a trustee whose period of office expires at the annual general meeting may be reappointed. The Board of Trustees meets when considered necessary and issues a quarterly update which includes an extensive report to the board members, seeking any observations.

 

A committee has been established to consider the vision, purpose and strategy of the trust.

Induction and training of trustees

New trustees are briefed on their legal obligations under Charity and Company Law and are given a copy of the Memorandum and Articles of Association, the most recent budget and recent financial statements and management accounts of the company. All trustees are offered training in their responsibilities.

HIGHLAND HISTORIC BUILDINGS TRUST
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 4 -
Other matters

Day to Day Management

Day to day management is carried out by the Chairman and his fellow trustees and they are supported by Andrew Wright, a retired conservation architect and heritage consultant, and Glyn Young , a chartered surveyor specialising in building conservation.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

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

A M Bennett
Trustee
28 August 2024
HIGHLAND HISTORIC BUILDINGS TRUST
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF HIGHLAND HISTORIC BUILDINGS TRUST
- 5 -

I report on the financial statements of the Trust for the period ended 31 December 2023, which are set out on pages 6 to 13.

Respective responsibilities of trustees and examiner

The Trust’s trustees, who are also the directors of Highland Historic Buildings Trust 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 connection with 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.

Rhona Wilson BA, FCCA
MacKenzie Kerr Limited
Chartered Accountants
Redwood
19 Culduthel Road
Inverness
IV2 4AA
Dated: 28 August 2024
HIGHLAND HISTORIC BUILDINGS TRUST
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 6 -
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2023
2023
2023
2022
2022
2022
Notes
£
£
£
£
£
£
Income from:
Charitable activities
2
-
1,490
1,490
-
1,450
1,450
Expenditure on:
Raising funds
3
215
1,067
1,282
-
-
-
Charitable activities
4
1,147
708
1,855
632
-
632
Total expenditure
1,362
1,775
3,137
632
-
632
Net income/(expenditure) and movement in funds
(1,362)
(285)
(1,647)
(632)
1,450
818
Reconciliation of funds:
Fund balances at 1 July 2022
1,748
1,450
3,198
2,380
-
2,380
Fund balances at 31 December 2023
386
1,165
1,551
1,748
1,450
3,198

The statement of financial activities includes all gains and losses recognised in the period. All income and expenditure derive from continuing activities.

HIGHLAND HISTORIC BUILDINGS TRUST
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 7 -
31.12.2023
30.06.2022
Notes
£
£
£
£
Current assets
Debtors
9
27
-
Cash at bank and in hand
2,325
3,578
2,352
3,578
Creditors: amounts falling due within one year
10
801
380
Net current assets
1,551
3,198
The funds of the Trust
Restricted income funds
11
1,165
1,450
Unrestricted funds
386
1,748
1,551
3,198

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the period ended 31 December 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 period in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the trustees on 28 August 2024
A M Bennett
Trustee
Company registration number SC101235 (Scotland)
HIGHLAND HISTORIC BUILDINGS TRUST
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 8 -
1
Accounting policies
Charity information

Highland Historic Buildings Trust is a private company limited by guarantee incorporated in Scotland. The registered office is Redwood, 19 Culduthel Road, Inverness, IV2 4AA.

1.1
Reporting period

The trustees voted to extend the accounting period to 18 months to facilitate a change in year end to 31 December for the 2023 year and onwards.

The comparative figures shown in the accounts for the year to 30 June 2022 represent 12 months and therefore are not entirely comparable.

1.2
Accounting convention

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), 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 Trust is a Public Benefit Entity as defined by FRS 102.

 

The Trust 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 Trust. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.3
Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
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 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.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Trust.
1.5
Income
Income is recognised when the Trust 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.
HIGHLAND HISTORIC BUILDINGS TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies (Continued)
- 9 -
1.6
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.

1.7
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.

1.8
Financial instruments

The Trust 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 Trust's balance sheet when the Trust 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 Trust’s contractual obligations expire or are discharged or cancelled.

1.9
Taxation

The charity is exempt from corporation tax on its charitable activities.

HIGHLAND HISTORIC BUILDINGS TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 10 -
2
Charitable activity income
Restricted
Restricted
funds
funds
2023
2022
£
£
General activities

Grants received

1,490
1,450
3
Expenditure on raising funds
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2023
2023
2023
2022
2022
2022
£
£
£
£
£
£
Fundraising and publicity
Advertising
-
1,067
1,067
-
-
-
Other fundraising costs
215
-
215
-
-
-
215
1,067
1,282
-
-
-
4
Charitable activitiy expenditure
General activities
General activities
2023
2022
£
£
Direct costs

Web hosting

1,046
200

Sundry

9
2
1,055
202
Share of support and governance costs (see note 5)
Governance
800
430
1,855
632
Analysis by fund
Unrestricted funds
1,147
632
Restricted funds
708
-
1,855
632
HIGHLAND HISTORIC BUILDINGS TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 11 -
5
Support costs allocated to activities
2023
2022
£
£
Governance costs
800
430
Analysed between:
General activities
800
430
6
Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the Trust during the period.
7
Employees

The average monthly number of employees during the period was:

2023
2022
Number
Number
Total
-
0
-
0
There were no employees whose annual remuneration was more than £60,000.
Remuneration of key management personnel

No remuneration is paid to key management personnel.

8
Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

9
Debtors
2023
2022
Amounts falling due within one year:
£
£
Other debtors
27
-
10
Creditors: amounts falling due within one year
2023
2022
£
£
Other creditors
801
380
HIGHLAND HISTORIC BUILDINGS TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 12 -
11
Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At 1 July 2022
Incoming resources
Resources expended
At 31 December 2023
£
£
£
£
Easter Ross Churches Heritage Trail
1,450
1,490
(1,775)
1,165
Previous year:
At 1 July 2021
Incoming resources
Resources expended
At 30 June 2022
£
£
£
£
Easter Ross Churches Heritage Trail
-
1,450
-
1,450

Funds received for the promotion of the Easter Ross Churches Heritage Trail.

12
Unrestricted funds

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. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 July 2022
Resources expended
At 31 December 2023
£
£
£
General funds
1,748
(1,362)
386
Previous year:
At 1 July 2021
Resources expended
At 30 June 2022
£
£
£
General funds
2,380
(632)
1,748
13
Analysis of net assets between funds
Unrestricted
Restricted
Total
funds
funds
2023
2023
2023
£
£
£
Fund balances at 31 December 2023 are represented by:
Current assets/(liabilities)
386
1,165
1,551
386
1,165
1,551
HIGHLAND HISTORIC BUILDINGS TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
13
Analysis of net assets between funds (Continued)
- 13 -
Unrestricted
Restricted
Total
funds
funds
2022
2022
2022
£
£
£
Fund balances at 30 June 2022 are represented by:
Current assets/(liabilities)
1,748
1,450
3,198
1,748
1,450
3,198
14
Related party transactions

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

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