REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
Report of the Trustees and |
Unaudited Financial Statements for the Year Ended 31 March 2024 |
for |
Caithness F.M. Limited |
REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
Report of the Trustees and |
Unaudited Financial Statements for the Year Ended 31 March 2024 |
for |
Caithness F.M. Limited |
Caithness F.M. Limited |
Contents of the Financial Statements |
for the Year Ended 31 March 2024 |
Page |
Report of the Trustees | 1 | to | 4 |
Independent Examiner's Report | 5 |
Statement of Financial Activities | 6 |
Balance Sheet | 7 | to | 8 |
Notes to the Financial Statements | 9 | to | 14 |
Caithness F.M. Limited (Registered number: SC185596) |
Report of the Trustees |
for the Year Ended 31 March 2024 |
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 2024. 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 |
Caithness FM Ltd (CFM) was set up as a company limited by guarantee in 1998 listed as SC185596. It was originally envisaged as a charity, but under the rules of the day, did not qualify. In 2021 we applied for and were awarded charity status, listed as SC050922. This gave us several benefits such as exemption from business rates and water charges. |
The aims and objectives of the company and charity are: |
- The prevention and relief of poverty. |
- The advancement of citizenship and community development. |
- The advancement of the arts, heritage culture or science. |
Included in these objects are: |
- Run a community radio service to encourage disadvantaged and isolated rural populations to be fully aware of community affairs and opportunities. |
- Liaise with other voluntary sector bodies, local authorities, UK or Scottish government departments and agencies, and other bodies, all with a view to furthering the company's objects. |
- Establish and/or support any other charity and make donations for any charitable purpose falling within the company's objects. In support of this object, we run a Christmas Toy Appeal, with donated toys etc. distributed throughout the county of Caithness to disadvantaged families. |
CFM broadcasts on 106.5 FM in the county of Caithness and on the internet. As such, we are regulated by OfCom [CR102144] for the FM broadcast and also by PRS/PPL for music rights on both broadcast and internet. These licences represent a considerable cost which needs to be covered by advertising and sponsorship. To date we have six regular sponsored shows and numerous short-term advertisements which need continual administration to maintain. We provide free advertising for local charities, art events and local job opportunities and interviews with local people and community organisations. |
The station is run entirely by volunteers. Our current list of presenters is 20 (up 3 on last year despite some turnover), each contributing an average of 2.6 broadcast hours per week. The directors contribute considerably more in terms of management and maintenance. We report to OfCom on volunteer hours, which we estimate at 71 hours per week and a value of £52,000 at the agreed hourly rates. |
The company directors are also trustees for the charity. They are: |
- Robert (Robin) Young (Chairman) |
- Jackie Johnson (Company Secretary) |
- Roger Saxon (Vice-chairman) |
- Barbara Saxon (Treasurer) |
- Robert Johnson |
- Kenneth McArthur |
- Sand Owsnett |
- Shane Ross |
All but two of these are also regular presenters on the radio. |
Caithness F.M. Limited (Registered number: SC185596) |
Report of the Trustees |
for the Year Ended 31 March 2024 |
ACHIEVEMENT AND PERFORMANCE |
Charitable activities |
This year we completely revamped out broadcast studio with new equipment since our original equipment had served over 25 years and was starting to create problems. This required a big training exercise for our existing and newly recruited volunteers. Our new studio desk was donated as unused kitchen units and put together by a local joinery company. |
We also completed redecoration of the main rooms, with new toilet equipment and replaced floor coverings in the kitchen and toilet and new carpets in the record library, reception and studio. |
Our sustaining service, which we switch to outwith our scheduled broadcast hours is the internet broadcaster Greatest Hits Radio for the North of Scotland, (GHR) giving us a 24-hour output on FM and internet. We maintain 39 live broadcast hours per week, our Ofcom obligation (condition of licence) is for 35 hours. Currently we are on air from 6pm to 11pm daily and 2pm through to 11pm on a Saturday. |
This year, we successfully re-applied for our OfCom broadcast licence, required every five years. This included a statement that we have reserves sufficient to cover operating costs and licence fees. |
Grass cutting on our extensive plot is a big maintenance chore for our volunteers in the summer months. Local criminal justice payback helps with the most difficult bits. |
FINANCIAL REVIEW |
Reserves policy |
CFM has always operated a reserves policy based on the possibility of major equipment failure, not covered by our insurance. Our studio broadcasting equipment has recently been replaced after 25 years of operation. This cost £2,700, so we will not set aside reserves for this meantime. |
In the event of loss of the building by fire, etc we would want to be back on air as soon as possible to keep business disruption to a minimum. This would be covered by our insurance policy; currently the building is insured for £114k. Loss of income (business interruption) is covered by our insurance at £25k. |
Although transmitting mast equipment is covered by insurance at £12.5k, we think it prudent to maintain a reserve of £3k in the event we could not broadcast from our current mast at Ben Dorrery, operated by Moray Firth Radio (Bauer Group). |
FUTURE PLANS |
We will make greater efforts to increase the sponsorship and advertising revenue, within the constraints set out by OfCom. To this end, we will investigate funding for a part-time station manager. |
As in previous years, we accept donations of cash and new toys for our Christmas Toy Appeal. The Toy Appeal has been running for longer than we have been on air and continues to be well received and supported by the generous people and businesses of Caithness. Several local businesses and stores operate collection points for toys. The recipients are identified by volunteers from the Council's Social Work department. In Christmas 2023 the toys we supplied were distributed to an estimated 350 children in our home county of Caithness. We are considering the merits of making the CFM Toy Appeal a separate SCIO charity from the Community Radio aspects of the business. They already are operated as such, with different bank accounts, but this will result in additional registration with OSCR and greater overheads. |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Governing document |
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. |
Recruitment and appointment of new trustees |
The charity encourages those members who wish to be considered for appointment as trustee to give written notice to the company prior to the AGM. The board is able to co-opt trustees at any time. All directors retire annually but are eligible for re-election. |
Caithness F.M. Limited (Registered number: SC185596) |
Report of the Trustees |
for the Year Ended 31 March 2024 |
REFERENCE AND ADMINISTRATIVE DETAILS |
Registered Company number |
Registered Charity number |
Registered office |
Trustees |
Company Secretary |
Independent Examiner |
Reid & Fraser |
Chartered Accountants |
15 Princes Street |
Thurso |
Caithness |
KW14 7BQ |
STATEMENT OF TRUSTEES' RESPONSIBILITIES |
The trustees (who are also the directors of Caithness F.M. Limited for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). |
Company law requires the 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 period. In preparing those financial statements, the trustees are required to |
- | select suitable accounting policies and then apply them consistently; |
- | observe the methods and principles in the Charity SORP; |
- | make judgements and estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. |
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with 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. |
Approved by order of the board of trustees on |
Caithness F.M. Limited (Registered number: SC185596) |
Report of the Trustees |
for the Year Ended 31 March 2024 |
Independent Examiner's Report to the Trustees of |
Caithness F.M. Limited (Registered number: SC185596) |
I report on the accounts for the year ended 31 March 2024 set out on pages six 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. |
Linda Cameron FCCA CTA CA |
The Institute of Chartered Accountants of Scotland |
Reid & Fraser |
Chartered Accountants |
15 Princes Street |
Thurso |
Caithness |
KW14 7BQ |
19 August 2024 |
Caithness F.M. Limited |
Statement of Financial Activities |
for the Year Ended 31 March 2024 |
2024 | 2023 |
Unrestricted | Restricted | Total | Total |
fund | funds | funds | funds |
Notes | £ | £ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies | 2 |
Charitable activities | 4 |
Investment income | 3 |
Total |
EXPENDITURE ON |
Charitable activities |
Total |
NET INCOME/(EXPENDITURE) | ( |
) |
Transfers between funds | 15 | 921 | (921 | ) | - | - |
Net movement in funds | ( |
) |
RECONCILIATION OF FUNDS |
Total funds brought forward |
TOTAL FUNDS CARRIED FORWARD | 92,515 |
Caithness F.M. Limited (Registered number: SC185596) |
Balance Sheet |
31 March 2024 |
2024 | 2023 |
Unrestricted | Restricted | Total | Total |
fund | funds | funds | funds |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
CURRENT ASSETS |
Debtors | 11 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 12 | ( |
) | ( |
) | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 13 | ( |
) | ( |
) | ( |
) |
NET ASSETS |
FUNDS | 15 |
Unrestricted funds | 42,975 |
Restricted funds | 49,540 |
TOTAL FUNDS | 92,515 |
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2024. |
The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2024 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. |
Caithness F.M. Limited (Registered number: SC185596) |
Balance Sheet - continued |
31 March 2024 |
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 |
Caithness F.M. Limited |
Notes to the Financial Statements |
for the Year Ended 31 March 2024 |
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. |
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. |
INTANGIBLE ASSETS |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Patents and licences are being amortised at the following annual rates: |
Licences - 15% reducing balance |
TANGIBLE FIXED ASSETS |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Improvements to property | - |
Equipment | - |
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. |
DONATED GOODS AND SERVICES |
Donated goods and services are recognised as income when the charity has control over the item, any conditions associated with the donated items have been met, the receipt of economic benefit from the use of the charity of the item is probable and that economic benefit can be measured reliably. |
GRANTS RECEIVED |
Grants received in respect of capital expenditure are credited to the statement of financial activities in the period received in accordance with the guidance contained in the Statement of Recommended Practice. |
Grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate. |
Caithness F.M. Limited |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
2. | DONATIONS AND LEGACIES |
2024 | 2023 |
£ | £ |
Donations and gifts received |
Membership Fees |
Donated goods and services | 53,740 | 23,114 |
3. | INVESTMENT INCOME |
2024 | 2023 |
£ | £ |
Deposit account interest |
4. | INCOME FROM CHARITABLE ACTIVITIES |
2024 | 2023 |
Activity | £ | £ |
Sponsorship income | Radio Show | 3,953 | 3,293 |
Commercial income | Radio Show | 22,733 | 4,698 |
Grants | Radio Show | - | 10,000 |
Grants received, included in the above, are as follows: |
2024 | 2023 |
£ | £ |
Energy Savings Trust - Building refurbishment | - | 10,000 |
5. | NET INCOME/(EXPENDITURE) |
Net income/(expenditure) is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Depreciation - owned assets |
Patents and licences amortisation |
6. | TRUSTEES' REMUNERATION AND BENEFITS |
There were no trustees' remuneration or other benefits for the year ended 31 March 2024 nor for the year ended 31 March 2023. |
TRUSTEES' EXPENSES |
There were no trustees' expenses paid for the year ended 31 March 2024 nor for the year ended 31 March 2023. |
Caithness F.M. Limited |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
7. | STAFF COSTS |
The average number of employees in the year was Nil (2023 - Nil). |
8. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES |
Unrestricted | Restricted | Total |
fund | funds | funds |
£ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies |
Charitable activities |
Investment income |
Total |
EXPENDITURE ON |
Charitable activities |
Total |
NET INCOME/(EXPENDITURE) | ( |
) |
Transfers between funds | (3,484 | ) | 3,484 | - |
Net movement in funds | ( |
) |
RECONCILIATION OF FUNDS |
Total funds brought forward | 52,769 | 35,331 |
TOTAL FUNDS CARRIED FORWARD | 42,975 | 49,540 | 92,515 |
9. | INTANGIBLE FIXED ASSETS |
Patents |
and |
licences |
£ |
COST |
At 1 April 2023 and 31 March 2024 |
AMORTISATION |
At 1 April 2023 |
Charge for year |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
Caithness F.M. Limited |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
10. | TANGIBLE FIXED ASSETS |
Improvements |
Land and | to |
buildings | property | Equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2023 |
Additions |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Other loans (see note 14) |
Trade creditors |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Other loans (see note 14) | 2,968 |
Caithness F.M. Limited |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
14. | LOANS |
An analysis of the maturity of loans is given below: |
2024 | 2023 |
£ | £ |
Amounts falling due within one year on demand: |
Other loans | 475 | 443 |
Amounts falling between one and two years: |
Other loans - 1-2 years |
Amounts falling due between two and five years: |
Other loans - 2-5 years |
Amounts falling due in more than five years: |
Repayable by instalments: |
Other loans more 5yrs instal |
15. | MOVEMENT IN FUNDS |
Net | Transfers |
movement | between | At |
At 1.4.23 | in funds | funds | 31.3.24 |
£ | £ | £ | £ |
Unrestricted funds |
General fund | 42,975 | (10,108 | ) | 921 | 33,788 |
Restricted funds |
Toy Appeal | 23,902 | (984 | ) | - | 22,918 |
Property refurbishment | 24,859 | 14,699 | (2,597 | ) | 36,961 |
Online broadcasting | 779 | (2,455 | ) | 1,676 | - |
11,260 | ( |
) |
TOTAL FUNDS | 1,152 | 93,667 |
Net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 60,321 | (70,429 | ) | (10,108 | ) |
Restricted funds |
Toy Appeal | 19,711 | (20,695 | ) | (984 | ) |
Property refurbishment | 18,396 | (3,697 | ) | 14,699 |
Online broadcasting | - | (2,455 | ) | (2,455 | ) |
( |
) | 11,260 |
TOTAL FUNDS | ( |
) | 1,152 |
Caithness F.M. Limited |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
15. | MOVEMENT IN FUNDS - continued |
Comparatives for movement in funds |
Net | Transfers |
movement | between | At |
At 1.4.22 | in funds | funds | 31.3.23 |
£ | £ | £ | £ |
Unrestricted funds |
General fund | 52,769 | (6,310 | ) | (3,484 | ) | 42,975 |
Restricted funds |
Toy Appeal | 19,502 | 4,400 | - | 23,902 |
Property refurbishment | 14,444 | 6,931 | 3,484 | 24,859 |
Online broadcasting | 1,385 | (606 | ) | - | 779 |
35,331 | 10,725 | 3,484 | 49,540 |
TOTAL FUNDS | 88,100 | 4,415 | - | 92,515 |
Comparative net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 29,377 | (35,687 | ) | (6,310 | ) |
Restricted funds |
Toy Appeal | 20,525 | (16,125 | ) | 4,400 |
Property refurbishment | 10,001 | (3,070 | ) | 6,931 |
Online broadcasting | (1 | ) | (605 | ) | (606 | ) |
30,525 | (19,800 | ) | 10,725 |
TOTAL FUNDS | 59,902 | (55,487 | ) | 4,415 |
16. | RELATED PARTY DISCLOSURES |
17. | DONATED GOODS AND SERVICES |
During the year, donated goods with the approximate value of £1,820 (2023 - £1,800) were received for the Toy Appeal and have been recorded as income with a corresponding expense recognised in the SOFA. |
Volunteers' time in running the radio station has been valued at £47,000 (2023 - £19,022) and management time has been valued at £4,920 (2023 - £2,292) and has been recorded as income and a corresponding expense recognised in the SOFA. |