Registered number: SC171248
Charity number: SC026246
(A company limited by guarantee)
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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THE KNOYDART FOUNDATION
CONTENTS
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THE KNOYDART FOUNDATION
REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS
FOR THE YEAR ENDED 31 DECEMBER 2023
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THE KNOYDART FOUNDATION
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The Trustees present their annual report together with the audited financial statements of the Company for the ended 31 December 2023. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Since the group and the Company qualify as small under section 383 of the Companies Act 2006, the Group strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
Objectives and activities
a. Policies and objectives
The charitable company has been set up to conserve and preserve the character and natural beauty of the Knoydart Peninsula for the benefit of the public and the local population. In doing so the charitable company also aims to:
∙Foster and encourage appreciation and interest in the peninsula and to accommodate access and opportunities for those wishing to visit, taking into account conservation, protection and land management.
∙To encourage and develop a spirit of voluntary commitment amongst the community, supporters, individuals, companies, visiting students and other organisations to achieve its objectives.
∙To improve the employment and training opportunities for residents/inhabitants on the peninsula through assisting or promoting economic and environmental development.
∙To develop/assist in the services or facilities in the interest of social welfare.
Achievements and performance
a. Chair's report
Overview
2023 was a tumultuous year for the Knoydart Foundation. One director, Sam Gardener, died in the year. He is missed by all for his thoughtful presence, insightful input and mediating influence. Five directors resigned, although one of these was so she could move on to employment with the Foundation. The present board would like to thank Anna Wilson, Jane Holloway, Lachie Robinson, Jo Firminger and Corinna Calder for all the voluntary endeavour they put into the Knoydart Foundation. Three employees resigned. The board would like to thank Craig Dunn, Louise Costello and Reagan Nunn for all their hard work. Work during the year Extraordinary effort by all employees continued throughout the year. The Ranger service, with Finlay Greig at the helm, with the able support of Drew MacNaughton, offered a wide range of tours and experiences to visitors and local alike. This alongside managing the Long Beach campsite and supporting other land management activities. The land management team: Jim Brown, Lewis Robb, Daniel Wood, Constantin Schallercotran, ably dealt with an increased physical and managerial workload due to the Black Hills project running in tandem with the normal roles and responsibilities. Sara Donald progressed major housing projects at Millburn and the net shed area to and through planning respectively. She also took on and made headway with the general maintenance of the buildings.
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THE KNOYDART FOUNDATION
Achievements and performance (continued)
The changing core of the office staff dealt with everything that was thrown at them.
This included, in a non-exhaustive list: communication mast sites and demands, personnel issues, late filing of accounts, late registration for VAT and its impacts, clarifications and rationalisations around intercompany transfers, constant requirements to update the bank access, consultations to enable local CIC’s to develop at the Tree Nursery and the Farm, technical/IT problems, plot eligibility and sales, leases. By the final quarter of the year a clearer plan had emerged in the office. Work was focused on sorting contracts, filing paperwork and rationalising the technical requirements and contracts that the Foundation used for support. This alongside the day to day of dealing with queries and ongoing payments/wages for all three companies in the group. Jacqui Wallace was appointed at the very end of the year to take over the local management of the accounts. She joined Corinna Calder, who had been recruited in October, to form a core admin team. Trading subsidiaries The year was also full of work for Knoydart Trading and Knoydart Renewables. They have reflected this in their own accounts and reports. From the Foundation side of the group operation it felt that the working environment and co-operation between the three continued to improve as the year went on. Intercompany discussions were more inclusive and managers from each of the companies more likely to make their voice heard. Renewables and Trading continue to use the Foundation office and staff for services and facilties. Other Community Organisations The Foundation continued to work productively with the Knoydart Forest Trust on the woodland deer management and the Black Hills Project. By the end of the year there had been a joint expression of interest lodged for a FIRNS (Facility for Investment Ready Nature Scotland) project. The Foundation facilitated access requirements to the back of The Old Forge as well as renting office space in the old display room to The Old Forge Community Benefit Society throughout their, acquisition, renovation and early operational stage. The Foundation continues to use the meeting room at Knoydart Community Hall for all its meetings. Finances Notwithstanding the income from the open market plot sale of the previous year the financial situation at the Foundation led to serious concern for the board, the staff and the community. The at bank total for the three Foundation accounts fell by £61,454 over the year. £30,000 of this reduction was accounted for by a pre-agreed transfer to the Renewables Energy Security Project. If Knoydart Trading bank account is included in the at bank total (intercompany transfers/balances possibly make this a useful exercise) then the reduction in money at bank becomes £34,912. Cashflow at the Foundation in the final month of the year was a real issue and early 2024 was to see a transfer of £50,000 from reserves to operations account. The next year 2024 brings much potential and hope. We would like to see a resolution of financial worries through a stronger local take on the accounts and intercompany transactions. An increase in clarity around the accounts could and should lead to a greater understanding of the operations of the three companies: in the staff base, in the directors and in the community at large. We hope: To see work start on the Workers Accommodation project, with all funding resources in place. To see the Millburn housing project gain planning permission To see the Ranger service continue and expand its excellent services to visitors and the community To see land and deer management continue the work implemented by the Black Hills project as well as the ever efficient and ongoing deer management over the rest of the landholdings. To see the FIRNS project move forward in collaboration with the Knoydart Forest Trust. We hope Knoydart Renewables will implement their organised work programme and thus continue to support the
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THE KNOYDART FOUNDATION
Achievements and performance (continued)
general aims of the Foundation.
We hope that Knoydart Trading will continue to build their multi layered business – developing visitor experience and local services. Hopefully the Foundation will be more stable, forward thinking and financially viable in 2024. Davie Newton
Chair of Knoydart Foundation
b. Trading Companies
The Foundation is the owner and sole member of two subsidiary companies, Knoydart Trading Limited and Knoydart Renewables Limited and appoints the directors of those companies
The achievements of those organisations have brought about the following benefits to the community and public in this financial period:
Knoydart Trading Limited
The trading companies recognise the vital role they play in contributing to community projects and goals by supporting the charitable purposes of the Knoydart Foundation. Knoydart Trading continues to develop the local shop, venison butchery and visitor accommodation with local services and employment being key contributions. For our financial year 2023, we are pleased to be in the position to be able to make a donation to our parent charity The Knoydart Foundation. In this year we achieved Living Wage Foundation accreditation and have put the regular staff members on the payroll. We took the opportunity to buy an electric van for shop deliveries and Wee Hooses changeovers and agreed to sell the Hilux and trailer. We introduced departmental credit cards to increase office efficiency and along with the Foundation and office staff have worked to generally reduce book-keeping and IT costs. Janey de Nordwall resigned from the board in October. Jo Firminger was appointed to the board in April but also resigned in December. We were very sorry to see them go and thank them both for their tremendous energy and input to the company. In spite of the short time they were with us they left a legacy of enthusiasm and knowledge. We would also like to thank, and recognise the work done for Trading by the Foundation employees Craig Dunn and Louise Costello who both left during this period. Trading Activities Shop We were sorry to say goodbye to Christelle Stockdale in February. JP took on the manager's role and Terra became Assistant Manager. With the increased range of stock proving popular, a bi-weekly supply of fresh fruit and vegetables started in March along with regular orders from the Mallaig Bakehouse. The team actively try to supply what the local customers want and continue to extend the food range available. At the end of the summer we agreed to extend winter shop opening times to encourage local custom. We have monitored the viability of this move and it has proved to be worthwhile. We would like to thank all our local customers who support us so well. Accommodation We held an additional single agenda board meeting with the accommodation team to look at the way forward for the bunkhouse discussing and making plans for renovations, booking system, communications with the public, ordering and contracts. To comply with new laws we achieved a Short Term Letting Licence for the Wee Hooses. The summer was very busy and made doable with the help of volunteers Milo and Elke.
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THE KNOYDART FOUNDATION
Achievements and performance (continued)
The Bunkhouse flat has had a major alteration and refit making it cosy and efficient. Special thanks to Ben for this work. New contracts for Jenny and Ben were produced with start date at the beginning of the New Year. Venison Sadly, Will O’Neill left the butchering team to work for The Old Forge and we were lucky enough to get ongoing help from time served butcher John Cameron from Mallaig. In readiness for online selling we set up Knoydart Wild Venison social media. Kristy and Liz did an online course to help us make the most of this as a marketing tool, and the website went live in July. New legislation for refrigerated hanging transport for carcases throughout the supply chain meant that (while always marginal) costs to set up for this would be totally prohibitive and the decision was made to deal with 100% of the cull on Knoydart. We were lucky enough to receive a grant from the Highland Council Ward Discretionary Fund to buy three new freezers to store the excess meat. A big order from the Old Forge in readiness for food service also helped in terms of storage and, of course, cash flow. The community Land Week activities included a community meal in the hall and provided an opportunity for us to trial some proposed venison products including dried and cured venison, chorizo and smoked sirloin. Online sales have built up gradually and we enjoyed a pre Christmas flurry. We were pleased to be able to offer a special locals festive discount on on-line sales. Ness Porter joined the team taking over despatch and order fulfilment. Since the end of the financial year: The shop is improving their display space and have started thinking about a bigger range of gifts for the summer. Venison is working on finding funding to start up production of the further processed products. Accommodation is taking on a summer assistant as Ben has resigned from his post, we wish him well. There are plans to start renovations on the bunkhouse next winter. This will be done incrementally room by room so that we do not need to close. Trading operations will focus on improving efficiency, concentrating on marketing, and increasing profitability. Thank you to our managers, staff, volunteers and board members for their hard work and dedication to the success of the Trading company. Liz Tibbetts Chair, Knoydart Trading Ltd.
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THE KNOYDART FOUNDATION
Achievements and performance (continued)
Knoydart Renewables Limited
In 2023 Knoydart Renewables Ltd. (KRL) completed the final work package of the Energy Security Project which involved the installation and commissioning of the new hydro turbine control system. The team also completed two significant new connection projects for WHP Telecoms (the new 4G mast) and for Kilchoan Estate (which involved a rationalisation of their property connections on to one ground-mounted transformer and single metering point). Furthermore, the KRL team secured funding for continued undergrounding of the 11kV distribution network, upgrading of customer meters and the installation of a battery storage system which will take place in 2024.
As always, the KRL board and customers are grateful for the onsite operations team who have supported the recent improvement projects and continue to ensure the system is well-maintained, as well as respond to faults when they occur.
The KRL board decided to change accountants in 2023 from RA Clements to EQ Accountants so that the Knoydart Foundation group of companies are being supported by the same set of accountants and therefore operational efficiencies can be achieved. The board would like to thank RA Clements for their service over the years and welcome EQ to the team.
In September 2023, Frank Atherley stepped down as Chair of Knoydart Renewables, having successfully led the company through the funding and delivery of the Energy Security Project. The KRL board would like to thank Frank for his work and dedication to the company over the past decade and for leaving the company in a strong operational position.
Tom Dalziel
Chair of Knoydart Renewables Limited
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THE KNOYDART FOUNDATION
Financial review
a. Going concern
b. Reserves policy
c. Risk management
The Directors and management undertook an operational risk review in 2017/18 which includes governance, external risks and development. The Directors have focussed on areas such as: -
1.Reputational Risk
e.g. the risk to the reputation of the Foundation from real or perceived problems
2.Operational Risk
e.g. issues brought about by maintenance costs, reactive maintenance and development funding required for running the Hydro system (managed by our subsidiary Knoydart Renewables).
3.Financial and Fundraising Risk
e.g. the charity is unable to match income with expenditure. This work was done to enhance the ability of the company and its subsidiaries to take appropriate controlling action at an early stage. An example of this is the work undertaken by the Charity in review of its Strategy, priorities and organisational structure, with resources deployed to areas of the business requiring development, planning and funding. All of this is part of mitigating risk factors, not only within the operations of the charity, but in the services it provides to and on behalf of the community.
d. Financial review
Expenditure in the year ended 31 December 2023 was £1,044k (2022 - £798k) resulting in a group surplus of £243k (2022 - £550k) with a deficit of £37k (2022 - £12k) recorded by the parent charity. Total group funds carried forward are £5,082k (2022 - £4,840k).
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THE KNOYDART FOUNDATION
Structure, governance and management
a. Constitution
The Knoydart Foundation is a charitable company limited by guarantee, incorporated on 7th January 1997 and registered as a charity with effect from 1997 (Reg. No SC026246).
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, which were amended on 22 September 2020. In the event of the company being wound up members are required to contribute an amount not exceeding £1.
b. Methods of appointment or election of Trustees
The board consists of voluntary directors who meet monthly. The board has 7 directors: 5 are directly elected from the resident membership (community directors) with one each being nominated by the two non-resident members, the John Muir Trust and Highland Council.
c. Governance and Internal Control
The Foundation Purposes (updated September 2022) are:
∙to work for the benefit of the people of Knoydart to improve their quality of life while conserving and preserving the character and natural beauty of Knoydart and in such a manner that the needs and aspirations of the local population are acknowledged and respected.
∙to advance citizenship or Community development, including rural regeneration
∙to provide appropriate housing, education, employment, and recreation with the object of improving the conditions of life of the Community
∙to foster and encourage education and appreciation of Knoydart and accommodate access and opportunities for those wishing to visit the area for recreation or study.
Following the Strategy Planning process in 2017/18, which included a community planning and consultation process, and discussions with staff, it was decided to seek to recruit an Operations Manager to be responsible for management of all the Foundation Group's assets, businesses, and services. The day to day running of the charity in 2020/21 was delegated to the Operations Manager and staff teams who assist in the implementation of decisions from the Board. In 2019 an Office Manager was appointed to assist in the running of the organisation. The charity has an induction process and information pack for directors of the Foundation and trading companies to ensure awareness and understanding of:
∙the responsibilities of directors.
∙the organisational structure of the foundation.
∙confidentiality and conflicts of interest.
∙the financial position of the foundation.
∙the plans and objectives of the foundation.
d. Investment powers, Policy and Performance
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THE KNOYDART FOUNDATION
Structure, governance and management (continued)
e. Wider Network
f. Volunteers
Volunteers make a valuable contribution to the work of the Knoydart Foundation in many areas.
Local volunteers support the volunteer events organised by the ranger services in conjunction with the Forest Trust; our Friends of Knoydart scheme is operated on a volunteer basis by Isla Miller and Margaret Aldington. We also benefit form the John Muir Trust Volunteers who undertake work for the Foundation and the Knoydart Forest Trust on our land holdings. Our ranger service works with many other volunteers throughout the course of the period. Our sincere thanks go to all.
The Team
The directors would like to express sincere thanks to all the team for their hard work and resilience during one of the toughest periods experienced by the Foundation.
The directors would sincerely like to thank and acknowledge all the staff and seasonal workers for their commitment and hard work (a lot of which is hidden from view) as well as everyone else who helped us through 2023.
Plans for future periods
Started in 2017/18, the Strategic plan has gone through a number of iterations and in 2020 was updated with some headline strategic goals, on which work is ongoing.
1. Generate sustainable income 2. Find ways to evolve our visitor related activity to maximise the benefit to the local economy 3. Improve, where possible, financial performance of existing activities 4. Improve Community Engagement and Governance Within existing operations, the Foundation will continue: - Land Management We will continue to maintain the annual open range deer cull and will continue to manage grazing pressure in the woods on behalf of the Forest Trust. We will explore opportunities to increase the contribution of our land to tackling the climate and Bio-diversity crisis. Ranger Services We will look to increase the Ranger activity to improve revenue streams and provide a wider range of services to the local and visiting community. Housing We will complete our Housing Plan and seek approval from our members. This will include a maintenance plan for existing stock. Property We will increase our commercial building stock by providing necessary infrastructure for needed development.
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THE KNOYDART FOUNDATION
In Close
Finally, the directors would like to thank everyone in the community who has contributed to the work of the Foundation in the period whether by responding to consultations, volunteering, attending meetings or events, or being part of the "Friends of Knoydart".
We also want to express our thanks to all our funders and supporters for their ongoing support.
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THE KNOYDART FOUNDATION
Statement of Trustees' responsibilities
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THE KNOYDART FOUNDATION
Statement of Trustees' responsibilities (CONTINUED)
Disclosure of information to auditors
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
∙so far as that Trustee is aware, there is no relevant audit information of which the charitable group's auditors are unaware, and
∙that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable group's auditors are aware of that information.
Auditors
The auditors, Sumer Auditco Limited, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.
Approved by order of the members of the board of Trustees on
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THE KNOYDART FOUNDATION
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE KNOYDART FOUNDATION
We have audited the financial statements of The Knoydart Foundation (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
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THE KNOYDART FOUNDATION
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE KNOYDART FOUNDATION (CONTINUED)
The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements.
∙the Trustees' report has been prepared in accordance with applicable legal requirements.
In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report.
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:
∙the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
∙the parent charitable company financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of Trustees' remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit; or
∙the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' report and from the requirement to prepare a Strategic report.
As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
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THE KNOYDART FOUNDATION
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE KNOYDART FOUNDATION (CONTINUED)
We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We gained an understanding of the legal and regulatory framework applicable to the charitable company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misstatement due to fraud. We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Charities and Trustee Investment (Scotland) Act 2005 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, reviewing management's journals and enquiries with management.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
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THE KNOYDART FOUNDATION
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE KNOYDART FOUNDATION (CONTINUED)
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body, in accordance with regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company, its members, as a body, and its trustees, as a body for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditor
14 City Quay
Dundee
DD1 3JA
Sumer Auditco Limited are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
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THE KNOYDART FOUNDATION
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT)
FOR THE YEAR ENDED 31 DECEMBER 2023
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THE KNOYDART FOUNDATION
The Company statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 25 - 50 form part of these financial statements.
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THE KNOYDART FOUNDATION
REGISTERED NUMBER: SC171248
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023
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THE KNOYDART FOUNDATION
REGISTERED NUMBER: SC171248
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees on
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THE KNOYDART FOUNDATION
REGISTERED NUMBER: SC171248
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
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THE KNOYDART FOUNDATION
REGISTERED NUMBER: SC171248
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the Trustees on 20 September 2024 and signed on their behalf by:
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THE KNOYDART FOUNDATION
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
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THE KNOYDART FOUNDATION
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
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THE KNOYDART FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Knoydart Foundation is a Company Limited by Guarantee, incorporated in Scotland with a company registration number of SC171248 and a charity registration number of SC026246. The registered office is located at The Office, Knoydart, Inverness Shire, PH41 4PL.
2.Accounting policies
The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the Company and its subsidiary undertakings. The results of the subsidiaries are consolidated on a line by line basis.
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these .
All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Grants are included in the Consolidated statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Where the donated good is a fixed asset, it is measured at fair value, unless it is impractical to measure this reliably, in which case the cost of the item to the donor should be used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset class and depreciated over the useful economic life in accordance with the Company's accounting policies.
On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the Company which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
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THE KNOYDART FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
The same exemption does not apply to the subsidiary undertakings.
Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
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THE KNOYDART FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, as follows.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
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THE KNOYDART FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.
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THE KNOYDART FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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THE KNOYDART FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 30
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THE KNOYDART FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
3.Income from donations and grants (continued)
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THE KNOYDART FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
4.Income from charitable activities (continued)
Parent
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THE KNOYDART FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The cost of raising funds represents the Cost of Sales incurred by The SHOP, a trading activity operated by Knoydart Trading Limited, and a proportion of the administration costs incurred by Knoydart Trading Limited in respect of the operation of The SHOP.
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THE KNOYDART FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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THE KNOYDART FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Summary by fund type
Parent
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THE KNOYDART FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 36
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THE KNOYDART FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Parent
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THE KNOYDART FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 38
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THE KNOYDART FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 39
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THE KNOYDART FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
12.Tangible fixed assets (continued)
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The following were subsidiary undertakings of the Company:
The financial results of the subsidiaries for the year were:
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THE KNOYDART FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Triodos Bank N.V has a first ranking standard security over 2 sites at Inverie, Knoydart in respect of all sums due to become due in respect of the £110,000 loan drawn down in 2012.
Triodos Bank N.V also has first ranking standard securities over Stalkers Cottage, Inverie, Knoydart and over Foreman's Cottage No's 1 and 2 in respect of the existing loans taken out in 2003. The Scottish Ministers have a security for all sums due, or to become due, over various areas of ground at Inverie in respect of the grant funding provided.
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THE KNOYDART FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Triodos Loan
A loan for £110,000 from Triodos Bank was drawn down during 2012-13. This loan is repayable over 25 years at an interest rate of minimum of 3.5%, and is included in the above balances.
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THE KNOYDART FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 44
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THE KNOYDART FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 45
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THE KNOYDART FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 46
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THE KNOYDART FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 47
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THE KNOYDART FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 48
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THE KNOYDART FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
19.Analysis of net assets between funds (continued)
Page 49
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THE KNOYDART FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £6,406 (2022 - £4,256). £1,327 (2022 - £1,196) was payable to the fund at the balance sheet date and is included in creditors.
Page 50
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