I report on the financial statements of the company for the year ended 31 December 2023, which are set out on pages 4 to 9.
The company’s trustees, who are also the directors of Scottish Salmon Education and Research Foundation 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.
My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeks explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the financial statements.
In the course of my examination, no matter has come to my attention:
to keep accounting records in accordance with section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;
to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
The trustees present their annual report and financial statements for the year 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 company'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).
The company's objects are the following:
To advance the education and training of all those working in the farmed salmon industry in Scotland, at every level and stage in the production, processing and marketing chain.
To advance community development within those areas of Scotland in which the farmed salmon production unites are situated, primarily, but not exclusively, in the remote rural communities in the Highlands and Islands.
To advance the environmental protection of farmed salmon production units in Scotland, and to reduce the environmental impact of farmed salmon production on the local natural surroundings.
To advance the health and welfare of fish in the care of farmed salmon producers in Scotland.
There has been no change in these during the year.
Progress has continued with the PhD studentship, supported by SSERF, that seeks to assess the sustainability of the Scottish wrasse fishery. This project commenced in October 2021, with the project joint funded by SSERF and Scottish Government (Sea Fisheries department, Marine Directorate). During 2023, the PhD completed its second year and entered the third year of this 3.5 year studentship.
Building on research conducted in year one, a detailed plan for the PhD thesis was developed which took each experimental project as an individual chapter. Research continued to a) analyse existing catch data, identifying trends and key fishery assessment metrics, b) undertake field-based assessments of life history metrics from wrasse delivered to salmon farms, c) completed lab-based experiments to better understand the suitability and selectivity of existing wrasse traps and d) assessed bycatch and any risks to non-target species. During 2023 work either started or continued on the drafting of three research papers. These are in an advanced state and will be submitted to relevant peer-reviewed journals during 2024.
There was ongoing dissemination around the project to the salmon farming sector and Marine Directorate. Efforts to identify suitable national and international conferences to further disseminate project results were ongoing but challenged by the lack of suitable conferences during 2023 and beyond (within the lifetime of the PhD).
Moving into the final year of the PhD, the student will undertake further field work to enhance understanding of the population biology of ballan wrasse, and will complete lab- and desk-based analysis to conclude the remaining research chapters of the thesis. The student is on track to deliver a completed thesis for assessment and defence (viva) shortly after the conclusion of funding in spring 2025.
From an administrative perspective, additional SSERF funds (£2,078) were requested in 2023 to cover a shortfall in the student stipend. At the time of funding, accurate figures for the annual student stipend (for all years) were not available from the University of Aberdeen or UKRI. As such, an estimation was provided based on the stipend in 2020/21 and expected inflationary rises each year. This estimate fell slightly short of the actual stipend required. It is anticipated that a similar request for additional funds will be made to SSERF in 2024.
The Statement of Financial Activities show net outgoing resources of £1,432 (2022: £75,658) and our reserves stand at £26,860 (2022: £28,292).
It is the policy of the company that unrestricted funds which have not been designated for a specific use should be maintained at a level to ensure all projects approved for funding can be financed in full. The trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the company’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 year.
The trustees have assessed the major risks to which the company is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The company is a company limited by guarantee and was established for charitable purposes only. It is a registered Scottish company, incorporated on 25th September 2007, No: SC331411, and a registered Scottish Charity gaining charitable status on 9th October 2007, No: SC038793. It has its registered office and place of business at 3rd Floor, Venue Studios, 21 Carlton Road, Edinburgh, EH8 8DL.
The objects and powers of the charitable company are established under a Memorandum of Association. In the event of the company being wound up, members are requested to contribute an amount not exceeding £1.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
The trustees may appoint a person who is willing to act to be a trustee, either to fill a vacancy or as an additional trustee in accordance with the Articles. The company is not subject to a maximum number of trustees. New trustees are provided with information necessary for the responsibility of holding office as trustees of an incorporated charity.
The charity has no employees. All decisions are made by the board of trustees.
Small Company Provisions
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.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Scottish Salmon Education and Research Foundation is a private company limited by guarantee incorporated in Scotland. The registered office is 3rd Floor, Venue Studios, 21 Carlton Road, EDINBURGH, EH8 8DL.
The financial statements have been prepared in accordance with the company's Memorandum 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)".
The company is a Public Benefit Entity as defined by FRS 102.
The company has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the company. 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.
At the time of approving the financial statements, the trustees have a reasonable expectation that the company 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.
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 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.
Cash donations are recognised on receipt. Other donations are recognised once the company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Expenditure is recognised on an accruals basis as a liability is incurred.
Charitable expenditure comprising of costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the independent examiners fees.
All cost are allocated between the expenditure categories of the SoFA on a basis designed to reflect the use of the resource.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Independent examiner's fee
The average monthly number of employees during the year was:
There were no disclosable related party transactions during the year (2022 - none).