Caseware UK (AP4) 2023.0.135 2023.0.135 Caseware UK (AP4) 2023.0.135 2023.0.135 2024-03-312024-03-31false2024-10-152023-04-012024-03-31No description of principal activity1010 SC200325 2024-03-31 SC200325 2023-04-01 2024-03-31 SC200325 2022-04-01 2023-03-31 SC200325 2023-03-31 SC200325 2023-04-01 SC200325 c:CompanySecretary1 2023-04-01 2024-03-31 SC200325 c:RegisteredOffice 2023-04-01 2024-03-31 SC200325 d:Buildings 2023-04-01 2024-03-31 SC200325 d:Buildings 2024-03-31 SC200325 d:Buildings 2023-03-31 SC200325 d:Buildings d:LongLeaseholdAssets 2023-04-01 2024-03-31 SC200325 d:Buildings d:LongLeaseholdAssets 2024-03-31 SC200325 d:Buildings d:LongLeaseholdAssets 2023-03-31 SC200325 d:PlantMachinery 2023-04-01 2024-03-31 SC200325 d:PlantMachinery 2024-03-31 SC200325 d:PlantMachinery 2023-03-31 SC200325 d:MotorVehicles 2023-04-01 2024-03-31 SC200325 d:MotorVehicles 2024-03-31 SC200325 d:MotorVehicles 2023-03-31 SC200325 d:FurnitureFittings 2023-04-01 2024-03-31 SC200325 d:FurnitureFittings 2024-03-31 SC200325 d:FurnitureFittings 2023-03-31 SC200325 d:OfficeEquipment 2023-04-01 2024-03-31 SC200325 d:OtherPropertyPlantEquipment 2023-04-01 2024-03-31 SC200325 d:OtherPropertyPlantEquipment 2024-03-31 SC200325 d:OtherPropertyPlantEquipment 2023-03-31 SC200325 d:CurrentFinancialInstruments 2024-03-31 SC200325 d:CurrentFinancialInstruments 2023-03-31 SC200325 d:CurrentFinancialInstruments 1 2024-03-31 SC200325 d:CurrentFinancialInstruments 1 2023-03-31 SC200325 d:Non-currentFinancialInstruments 2024-03-31 SC200325 d:Non-currentFinancialInstruments 2023-03-31 SC200325 d:Non-currentFinancialInstruments 1 2024-03-31 SC200325 d:Non-currentFinancialInstruments 1 2023-03-31 SC200325 c:FRS102 2023-04-01 2024-03-31 SC200325 c:Audited 2023-04-01 2024-03-31 SC200325 c:PrivateLimitedCompanyLtd 2023-04-01 2024-03-31 SC200325 b:Trustee1 2023-04-01 2024-03-31 SC200325 b:Trustee2 2023-04-01 2024-03-31 SC200325 b:Trustee3 2023-04-01 2024-03-31 SC200325 b:Trustee4 2023-04-01 2024-03-31 SC200325 b:Trustee5 2023-04-01 2024-03-31 SC200325 b:Trustee6 2023-04-01 2024-03-31 SC200325 b:Trustee7 2023-04-01 2024-03-31 SC200325 b:Trustee8 2023-04-01 2024-03-31 SC200325 b:Trustee9 2023-04-01 2024-03-31 SC200325 b:Trustee10 2023-04-01 2024-03-31 SC200325 b:Trustee11 2023-04-01 2024-03-31 SC200325 b:Trustee12 2023-04-01 2024-03-31 SC200325 b:Trustee13 2023-04-01 2024-03-31 SC200325 b:Trustee14 2023-04-01 2024-03-31 SC200325 2 2024-03-31 SC200325 2 2023-03-31 SC200325 b:TotalUnrestrictedFunds 2024-03-31 SC200325 b:TotalUnrestrictedFunds 2023-03-31 SC200325 b:TotalRestrictedIncomeFunds 2024-03-31 SC200325 b:TotalRestrictedIncomeFunds 2023-03-31 SC200325 c:FullAccounts 2023-04-01 2024-03-31 iso4217:GBP xbrli:pure

Registered number: SC200325
Charity number: SC043681














THE MORVERN COMMUNITY DEVELOPMENT COMPANY
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 

CONTENTS



Page
Reference and administrative details of the Company, its trustees and advisers
1
Trustees' report
2 - 6
Independent auditors' report on the financial statements
7 - 10
Consolidated statement of financial activities
11
Consolidated balance sheet
13 - 14
Company balance sheet
15
Consolidated statement of cash flows
16
Notes to the financial statements
18 - 43
Company statement of cash flows
17

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS
FOR THE YEAR ENDED 31 MARCH 2024


Trustees
J Stuart-Smith
R Jones
H E Laidlaw, MCC representative
S Layton
K Laurie (appointed 6 January 2024, resigned 7 February 2024)
A F G Robertson, Chair (appointed 6 January 2024)
S Firth, Vice Chair (appointed 6 January 2024)
K W Laidlaw, Treasurer (appointed 6 January 2024)
C Montgomery, MCC representative (appointed 6 January 2024, resigned 19 September 2024)
E Bird (appointed 1 July 2024, resigned 11 September 2024)
J G Robertson (retired 6 January 2024)
A G Stammers (retired 6 January 2024)
N G Tordoff (retired 6 January 2024)
K J McLaughlin (resigned 6 January 2024)

Company registered number
SC200325

Charity registered number
SC043681

Registered office
Lochaline Harbour
Morvern
Oban
PA80 5XT

Company secretary
L Dobrokhodova

Independent auditors
Sumer Auditco Limited
Chartered Accountants
14 City Quay
Dundee
DD1 3JA

Page 1

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 
  
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The trustees present their annual report together with the audited financial statements of the Company for the   year ended 31 March 2024The Annual report serves the purposes of both a trustees' report and a directors' report under company law. The Directors 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
 

To manage community land and associated assets for the benefit of the Community and the public in general.
To provide, or assist in providing, recreational facilities, and/or organising recreational activities, which will be available to members of the Community and public at large with the object of improving the conditions of life of the Community. 
To advance community development, including urban or rural regeneration within the Community. 
To advance the education of the Community about its environment, culture, heritage and/or history.
To advance environmental protection or improvement including preservation, sustainable development and conservation of the natural environment, the maintenance, improvement or provision of environmental amenities for the Community and/or the preservation of buildings or sites of architectural, historic or other importance to the Community.
 

b. Activities undertaken to achieve objectives
 

The start of what is expected to be a steady flow of charitable income, for years to come, from our newly constructed Barr hydro scheme, has presented us with exciting new opportunities, while also presenting us with new challenges, largely of the ‘growing pains’ variety.  We are seeking to achieve best practice standards in the full range of governance practices of the charity. This is required to better deliver and achieve our objectives in years to come. We expect that a further year’s work will be required to get us close to where we need to be on this subject.
At the same time we have continued to work on key development projects during the year. 
 

Page 2

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 
Achievements and performance
 

a. Main achievements of the Company
 

Development Work: 
Our primary development objective this year was our phase 2 housing project to build ten new family scale social houses opposite the school play park in Lochaline .  We carried out a community consultation in June and submitted a full planning application on the 16th August 2023.  As we draft this annual report, a little over a year later,  we have still not received our planning consent (a response which we understand it quite normal of the planning system today). We are frustrated by the lack of support for what we are sure is such a good project, but we remain hopeful  that the logs will be unjammed and look forward to developing this much needed project for our community. During the year we were awarded grant funding from the Crown estates to employ a part time housing officer for a year from May 2024 and she is bursting to get on with the job once planning is in place.
Other Development projects worked on during the year included, the village maintenance plan, the community hazel woods in Lochaline, fuel pump services and prices, the EV charger at the hub, and better use of the hub facilities in general. Additionally we commissioned a feasibility study, funded by a CARES grant, to look at first options for a district heating scheme plus property insulation, covering as many properties as possible in Lochaline, plus options for more isolated properties around the rest of Morvern. More work is now being done on this project during 2024/25, led by MorVolts and including growing interest in a local energy network to make use of the significant renewable energy resources that Morvern offers.
Governance: 
Work done during the year towards our objective to achieve best practice standards of governance included the following. A board  training day on the 14th January 2023 , facilitated by HIE and presented by Weave Consultants,  which resulted in a draft development plan around improving governance company structure. Implementation was delayed for a lengthy period which covered  a HR related issue resulting in a key employee being on sick leave for a period. In October 2023 we appointment of STEP HR to provide professional support in their field and this has  improved things significantly in many areas, including our programme of drawing up and implementing a significant series of code of conduct policies. Our refreshed board, appointed on completion of our AGM in January, picked up the reins on all of this. Additional  training and input by STEP HR and DTAS  have encouraged us  in our plan to move to a more appropriate and sustainable  management structure , involving  a strategic only board linked through an employed operation director to the operations team. We are also working, with the important advice and support of DTAS,  on a revision and update of our Memorandum of Association Articles which were found to be rather outdated and full of holes. 
Our year ended, in March 2024, on both a sad and a happy  note. The sad note came when Anne-Mie retired from operating her Café LA in the hub, which had been such a keystone community asset since 2022, and we were unable to find a new replacement tenant.  The Happy news came, on the 21st March when our ‘Live Life Morvern’ Project was judged to be overall winner in this year’s Scottish Planning Innovations Awards. During 2024/25 we have moved forwards on both fronts, our new Hub Café, operated by MCTC will open on the 6th September 2024 and we are partnered with our Community Council in producing a place plan to add weight and planning support to Live Life Morvern.

 

b. Fundraising activities and income generation
 

During the year we worked closely with our two subsidiary trading companies, Morvern Community Trading Company (MCTC) and MorVolts, both of which have a  purpose to generate financial donations to the parent, which go to support our own charitable objectives. MCTC experienced challenging times during the Covid years, and we are working with them on a project to strengthen their long-term sustainability and financial viability. During the year we strengthened the MCTC board and, In March 2023,  we employed our first full time harbour master to run this business and  this has helped. We are also looking at the possibility of purchasing the lease of the harbour land site from the estate. MorVolts, owners and operators of the Barr Hydro scheme,  have had a bumper year or two, benefiting, as producers, from the rise in electricity prices that consumers have suffered from.
 
 

Financial review
 

Page 3

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 
a. Going concern
 

After making appropriate enquiries, the trustees have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
 

b. Reserves policy
 

The policy of the company is to aim to retain sufficient reserves to meet the cost of any regular commitments as well as a contingency to enable it to continue to develop further projects.  The company has built up considerable assets in terms of property and has some liquid reserves.  
The reserves policy is to establish a balance of free reserves, equal to 9 months of current operating costs. This target for reserves amounted to £145,000 during 2022-2023 to enable us to continue activities should a significant shortfall in funds occur.
MCDC’s total reserves (as parent) at 31 March 2024 amounted to £1,640,056 (2023 - £1,609,260), of which £525,891 (2023 - £494,764) is restricted.  The unrestricted funds amount to £1,114,165 (2023 - £1,114,496).
Free reserves amounted to £70,412 (2023 - £47,127) which is represented by the unrestricted funds net of fixed assets and designated funds. Although this is in short of the £145,000 target, management believe that donations from the subsidiaries will provide sufficient financial security.
 

c. Principal risks and uncertainties
 

We were a very small community, and we rely heavily on massive volunteer effort from our Trustees and others within the community.  Per the section on governance above we are seeking to mitigate that risk but have some way to go on this. Additionally, for new development work and other activities, we  continue to rely heavily on government sponsored grant funding, both revenue and capital.
 

Structure, governance and management
 

a. Constitution
 

The Morvern Community Development Company is registered as a charitable company limited by guarantee and was set up by Memorandum of Association.
 

b. Methods of appointment or election of trustees
 

Trustees/Directors are appointed under the terms of the Articles of Association at the Annual General Meeting. Full details of the Articles are available, but a summary includes the following:
There shall always be a minimum of 3 Trustees/directors 
There can be up to 7 individual persons elected as Directors by the Ordinary Members in terms of Article 33 (“the Elected Directors”), who must themselves be Ordinary Members; and up to 2 individual persons appointed by the Morvern Community Council or its successors in terms of Article 34 (“the Appointed Directors”); and a majority of the Directors/Trustees shall always be Elected Directors.
One third of Directors stand down at each AGM and are available for re-election for one further term and no longer than that without a minimum of one full year out of office.
 

Page 4

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 
Structure, governance and management (continued)

c. Organisational structure and decision-making policies
 

The Company is run by the board of trustees/directors appointed by the membership, who meet regularly once per month, with every third monthly meeting being a public meeting. Other meetings are held as required. The Company has one employee, our development officer who is also our Company Secretary. Specific projects are usually managed by small working sub-groups which report back to the main board. We have two subsidiary wholly owned trading companies, the boards of which are appointed by the parent.
 

d. Policies adopted for the induction and training of trustees
 

We seek to offer new trustees/directors induction training including, information provided by Companies House and OSCR as well as a structure whereby they can learn from other trustees/directors and our Company Secretary. We also seek to offer regular training events, often provided by the Development Trust Association Scotland, though our membership of that organisation.
 

e. Financial risk management
 

The trustees have assessed the major risks to which the Group and the Company are exposed, in particular those related to the operations and finances of the Group and the Company, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
 

f. Trustees' indemnities
 

Throughout the year, the Company purchased and maintained Directors' and Officers' liability insurance in respect of itself and for its Directors and Officers.
 
 
Plans for future periods
 

We continue to work to the 5-10 year Live Life Morvern Community Growth Plan that was developed in conjunction with Morvern Community Council in 2022 and which superseded the Community Grown Plan 2010 developed with the community in 2010.
 

Members' liability
 

The Members of the Company guarantee to contribute an amount not exceeding £1 to the assets of the Company in the event of winding up.
 

Page 5

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 
Statement of trustees' responsibilities
 

The trustees (who are also the directors of the Company for the purposes of company law) are responsible for preparing the Trustees' report 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 . Under company law, the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the trustees are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles of the Charities SORP (FRS 102);
make judgments and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.


The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Company and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). They are also responsible for safeguarding the assets of the Group and the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.


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 auditorsSumer Auditco Limitedhave 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 15 October 2024 and signed on their behalf by:
 




A F G Robertson



K W Laidlaw
Page 6

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 

Opinion


We have audited the financial statements of The Morvern Community Development Company (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Company Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:

give a true and fair view of the state of the Group's and of the parent charitable company's affairs as at 31 March 2024 and of the Group's incoming resources and application of resources, including its income and expenditure for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006.


Basis for opinion


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.


Conclusions relating to going concern


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.


Page 7

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE MORVERN COMMUNITY DEVELOPMENT COMPANY (CONTINUED)


Other information


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 reportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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.


Matters on which we are required to report by exception


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.


Responsibilities of trustees


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.


In preparing the financial statements, the trustees are responsible for assessing the Group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
 

Page 8

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE MORVERN COMMUNITY DEVELOPMENT COMPANY (CONTINUED)


Auditors' responsibilities for the audit of the financial statements


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 group and the activities it undertakes.  We considered the risk of acts by the company or its subsidiaries which were contrary to applicable laws and regulations, including fraud.  We designed audit procedures to repond 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 an error since fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.  As part of this testing, we considered the possible motivations for fraud against the entity and whether there was adequate oversight by the board of activities where there is increased susceptibility to fraud.
We focused on laws and regulations which could give rise to material misstatement in the financial statements including, but not limited to, the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 and relevant UK tax legislation.
Our tests involved agreeing the financial statement disclosures to the underlying supporting documentation and enquiries with management.  We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors which represented a risk of material misstatement.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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.


Page 9

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE MORVERN COMMUNITY DEVELOPMENT COMPANY (CONTINUED)


Use of our report
 

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.





Douglas Rae (Senior statutory auditor)
for and on behalf of
Sumer Auditco Limited
Chartered Accountants
Statutory Auditors
14 City Quay
Dundee
DD1 3JA

16 October 2024


Sumer Auditco Limited are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.


Page 10

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY


 
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT)
FOR THE YEAR ENDED 31 MARCH 2024


Unrestricted funds
2024
Restricted funds
2024
Total
funds
2024
Total
funds
2023
        £
        £
        £
        £

Income from:






Donations and legacies

3

4,134

48,373

52,507

21,537
 
Charitable activities

4

12,070

-

12,070

11,551
 
Other trading activities

5

1,399,152

-

1,399,152

887,098
 
Bank interest


7,904

-

7,904

1,686
 
Other income


16,967

-

16,967

12,780
 
Total income
1,440,227
48,373
1,488,600
934,652
Expenditure on:







Raising funds

7

870,705

-

870,705

737,601
 
Charitable activities

9

169,279

18,558

187,837

206,924
 
Total expenditure
1,039,984
18,558
1,058,542
944,525

Net income/(expenditure) before taxation

  

400,243

29,815

430,058

(9,873)
 
Taxation

  

(75,648)

-

(75,648)

(73,600)
 
Net income/(expenditure) after taxation

  

324,595

29,815

354,410

(83,473)
 
Transfers between funds

 23 

(1,312)

1,312

-

-
 
Net movement in funds
  
323,283
31,127
354,410
(83,473)

Reconciliation of funds:

  





Total funds brought forward

  

1,164,950

494,764

1,659,714

1,743,187
 
Net movement in funds

  

323,283

31,127

354,410

(83,473)
 
Total funds carried forward
  
1,488,233
525,891
2,014,124
1,659,714

The Consolidated statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 18 to 43 form part of these financial statements.

Page 11

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 
 

COMPANY STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT)
FOR THE YEAR ENDED 31 MARCH 2024

 
Unrestricted funds
Restricted funds
Total
funds
Total
funds
2024
2024
2024
2023
£
£
£
£
Income from :
Donations and legacies
3
182,367
48,373
230,740
71,537
Charitable activities
4
12,070
-
12,070
11,551
Bank interest
253
-
253
59
Other income 
13,938
-
13,938
15,211
Total income 
208,628
48,373
257,001
98,358
Expenditure on:
Charitable activities 
8,9   
207,647
18,558
226,205
209,324
Total expenditure 
207,647
18,558
226,205
209,324
Net (expenditure)/income
981
29,815
30,796
(110,966)
Transfers between funds 
(1,312)
1,312
-
-
Net movement in funds before other recognised gains/(losses)
(331)
31,127
30,796
(110,966)
Net movement in funds
(331)
31,127
30,796
(110,966)


Reconciliation of Funds: 
Total funds brought forward
1,114,496
494,764
1,609,260
1,720,226
Net movement in funds
(331)
31,127
30,796
(110,966)
Total funds carried forward
1,114,165
525,891
1,640,056
1,609,260

Page 12

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
REGISTERED NUMBER: SC200325


 
CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2024


2024
2023
£
£

Fixed assets
  

Tangible assets
 14 
6,425,795
6,607,454

Investments
 15 
9,300
9,300

  
6,435,095
6,616,754

Current assets
  

Stocks
 16 
8,802
4,231

Debtors: amounts falling due after more than one year
 17 
50,000
50,000

Debtors: amounts falling due within one year
 17 
215,629
168,606

Cash at bank and in hand
  
1,491,987
1,010,870

  
1,766,418
1,233,707

Creditors: amounts falling due within one year
 18 
(499,821)
(348,641)

Net current assets 
  
 
 
1,266,597
 
 
885,066

Total assets less current liabilities
  
7,701,692
7,501,820

Creditors: amounts falling due after more than one year
 19 
(5,534,570)
(5,766,006)

Provisions for liabilities
  
(152,998)
(76,100)

Total net assets 
  
2,014,124
1,659,714


Charity funds
  

Restricted funds
 23 
525,891
494,764

Unrestricted funds
 23 
1,488,233
1,164,950

Total funds
  
2,014,124
1,659,714

Page 13

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
REGISTERED NUMBER: SC200325


 
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024

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 15 October 2024 and signed on their behalf by:




A F G Robertson



K W Laidlaw

The notes on pages 18 to 43 form part of these financial statements.

Page 14

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
REGISTERED NUMBER: SC200325


 
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024


2024
2023
£
£

Fixed assets
  

Tangible assets
 14 
1,550,039
1,598,113

Investments
 15 
9,500
9,500

  
1,559,539
1,607,613

Current assets
  

Debtors: amounts falling due within one year
 17 
67,534
24,553

Cash at bank and in hand
  
121,415
57,656

  
188,949
82,209

Creditors: amounts falling due within one year
 18 
(52,206)
(22,902)

Net current assets 
  
 
 
136,743
 
 
59,307

Total assets less current liabilities
  
1,696,282
1,666,920

Creditors: amounts falling due after more than one year
 19 
(56,226)
(57,660)

Total net assets 
  
1,640,056
1,609,260


Charity funds
  

Restricted funds
 23 
525,891
494,764

Unrestricted funds
 23 
1,114,165
1,114,496

Total funds
  
1,640,056
1,609,260

The Company's net movement in funds for the year was £30,796 (2023 - £(110,966)).

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 15 October 2024 and signed on their behalf by:




A F G Robertson



K W Laidlaw

The notes on pages 18 to 43 form part of these financial statements.

Page 15

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY


 
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
Note
£
£

Cash flows from operating activities
  

Net cash used in operating activities

 27 

1,077,865
604,672

Cash flows from investing activities
  

Purchase of tangible fixed assets
  
(55,923)
(18,463)

Proceeds from sale of investments
  
-
21,000

Interest received
  
7,904
1,686


  

(48,019)
4,223

Cash flows from financing activities
  

Cash inflows from new borrowing
  
-
61,802

Repayments of borrowing
  
(226,007)
(150,618)

Interest paid
  
(322,722)
(282,781)

Net cash used in financing activities

  

(548,729)
(371,597)

Change in cash and cash equivalents in the year
  
 
481,117
 
237,298

Cash and cash equivalents at the beginning of the year
  
1,010,870
773,572

Cash and cash equivalents at the end of the year
 28 
1,491,987
1,010,870

The notes on pages 18 to 43 form part of these financial statements

Page 16

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY


 
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
Note
£
£

Cash flows from operating activities
  

Net cash used in operating activities

 27 

126,009
(14,129)

Cash flows from investing activities
  

Purchase of tangible fixed assets
  
(55,923)
(7,004)

Proceeds from sale of investments
  
-
21,000

Interest received
  
253
59

Net cash (used in)/provided by investing activities

  

(55,670)
14,055

Cash flows from financing activities
  

Repayments of borrowing
  
(1,311)
(21,872)

Interest paid
  
(5,269)
(3,787)

Net cash used in financing activities

  

(6,580)
(25,659)

Change in cash and cash equivalents in the year
  
 
63,759
 
(25,733)

Cash and cash equivalents at the beginning of the year
  
57,656
83,389

Cash and cash equivalents at the end of the year
 28 
121,415
57,656

The notes on pages 18 to 43 form part of these financial statements

Page 17

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


General information

The Morvern Community Development Company (MCDC) is a company limited by guarantee with no share capital registered in Scotland with company number SC200325. MCDC is also a registered charity under number SC043681. The registered address is Lochaline Harbour, Lochaline, Morvern, Oban, PA80 5XT.
The Group's functional and presentational currency is GBP.


2.Accounting policies

  
2.1

Basis of preparation of financial statements

The financial statements 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Morvern Community Development Company meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

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.

  
2.2

Going concern

The directors have reviewed the group's position, including the performance of the subsidiaries, and are satisfied that there are no material uncertainties around the appropriateness of the going concern basis, on which these accounts are prepared.

  
2.3

Income

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.

Income from the sale of electricity is recognised at the point the electricity is transferred through the customer's meter at the output of the Barr Hydro Scheme.

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.

Page 18

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

  
2.4

Expenditure

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 allocated on the portion of the asset’s use.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

All expenditure is inclusive of irrecoverable VAT.

  
2.5

Interest receivable

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.

 
2.6

Tangible fixed assets and depreciation

Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. 

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Assets in the course of construction are included at costs incurred to date. Depreciation on these assets is not charged until they are brought into use.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.

Depreciation is provided on the following bases:

Land
-
Not depreciated
Buildings (inc shore facilities)
-
4% -Straight-line from completion
Plant and machinery
-
25% - Reducing balance
Motor vehicles
-
25% - Reducing balance
Sheds, tools & allotments
-
25% - Reducing balance
Pontoons (included in plant and machinery)
-
7.5% - Straight-line
Hydro-Renewables (included in plant and machinery)
-
2.5% - Straight-line

Page 19

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

  
2.7

Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at cost less impairment at the Balance sheet date. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated statement of financial activities.

Investments in subsidiaries are valued at cost less provision for impairment.

  
2.8

Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

  
2.9

Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

  
2.10

Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.


2.11

Liabilities and provisions

Liabilities and provisions are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated statement of financial activities as a finance cost.
The provision made by Triodos in respect of the restoration requirement for the lease is charged to the Profit and Loss on a straight-line basis over the life of the lease.

  
2.12

Deferred taxation

Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation.

A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable surpluses from which the future reversal of the underlying timing differences can be deducted.

Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse.

Page 20

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

  
2.13

Financial instruments

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

  
2.14

Operating leases

Rentals paid under operating leases are charged to the Consolidated statement of financial activities on a straight-line basis over the lease term.

  
2.15

Pensions

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.

  
2.16

Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

Page 21

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

3.

Income from donations and legacies

Group




Unrestricted funds
2024
Restricted funds
2024
Total
funds
2024
        £
        £
        £
 



Donations

4,134

-

4,134

Grants

-

48,373

48,373



4,134
48,373
52,507




Unrestricted funds
2023
Restricted funds
2023
Total
funds
2023
        £
        £
        £



Donations

1,121

-

1,121

Grants

-

20,416

20,416



1,121
20,416
21,537

Company




Unrestricted funds
2024
Restricted funds
2024
Total
funds
2024
        £
        £
        £

Donations

182,367

-

182,367

Grants

-

48,373

48,373



182,367
48,373
230,740




Unrestricted funds
2023
Restricted funds
2023
Total
funds
2023
        £
        £
        £

Donations

51,121

-

51,121

Grants

-

20,416

20,416



51,121
20,416
71,537

Page 22

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

4.

Income from charitable activities

Group and Company



Unrestricted funds
2024
Total
funds
2024
        £
        £



Affordable housing rents

12,070

12,070




Unrestricted funds
2023
Total
funds
2023
        £
        £



Affordable housing rents

11,551

11,551



5.

Income from non-charitable trading activities

Group



Unrestricted funds
2024
Total
funds
2024
        £
        £



Sale of electricity

1,184,718

1,184,718

Other income

11,291

11,291

Sale of fuel

150,655

150,655

Harbour income

49,249

49,249

Car club income

3,239

3,239



1,399,152
1,399,152



Unrestricted funds
2023
Total
funds
2023
        £
        £



Sale of electricity

683,998

683,998

Sale of fuel

140,803

140,803

Harbour income

58,231

58,231

Car club income

4,066

4,066



887,098
887,098

Page 23

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

5.Income from non-charitable trading activities (continued)

 (continued)

The Company had no income from non-charitable trading activity in the current or prior year.


6.


Other incoming resources

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Profit share from EEL investment
2,229
1,692
2,229
1,692

Rent receivable
14,738
11,088
3,290
5,290

Management charges
-
-
8,419
8,229

16,967
12,780
13,938
15,211


All other incoming resources are unrestricted.


7.

Expenditure on raising funds




Group



Unrestricted funds
2024
Total
funds
2024
        £
        £



Cost of sales - Fuel

127,243

127,243

Cost of sales - Car club

2,564

2,564

Staff costs

87,496

87,496

Cost of sales - Electricity

46,740

46,740

Administration expenses

155,624

155,624

Interest payable

317,453

317,453

Depreciation of Hydro Electric Scheme

133,585

133,585



870,705
870,705

Page 24

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

7.Expenditure on raising funds (continued)



Unrestricted funds
2023
Total
funds
2023
        £
        £



Cost of sales - Fuel

123,530

123,530

Cost of sales - Car club

2,469

2,469

Staff costs

21,715

21,715

Cost of sales - Electricity

28,020

28,020

Administration expenses

145,506

145,506

Interest payable

282,781

282,781

Depreciation of Hydro Electric Scheme

133,580

133,580



737,601
737,601

The Company did not have any expenditure on raising funds in the current or prior year.


8.

Analysis of grants




Grants to Institutions
2024
Total
funds
2024
Total
funds
2023
        £
        £
        £




Donation to MCT

8,000

8,000

-
 


9.

Analysis of expenditure on charitable activities


Summary by fund type

Group




Unrestricted funds
2024
Restricted funds
2024
Total
2024
        £
        £
        £




Core development activites

138,414

-

138,414

Marina & pontoons

30,865

18,558

49,423



169,279
18,558
187,837




Page 25

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

9.Analysis of expenditure on charitable activities (continued)

Summary by fund type (continued)

Unrestricted funds
2023
Restricted funds
2023
Total
2023
        £
        £
        £




Core development activites

145,484

10,187

155,671

Marina & pontoons

30,865

18,558

49,423

Affordable housing

1,830

-

1,830



178,179
28,745
206,924


Company


Unrestricted funds
Restricted funds
Total
funds

2024
2024
2024

£
£
£

Core development activites - Direct costs
 176,782
 -
 176,782

Marina & pontoons - Direct costs
 30,865
 18,558
 49,423

 
 
 

Total 2024
 207,647
 18,558
 226,205



Unrestricted funds
Restricted funds
Total
funds

2023
2023
2023

£
£
£

Core development activites - Direct costs
 147,884
 10,187
 158,071

Core development activites - Direct costs
 30,865
 18,558
 49,423

Affordable housing - Direct costs
 1,830
 -
 1,830

 
 
 

Total 2023
 180,579
 28,745
 209,324

Page 26

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

10.

Analysis of expenditure by activities

Group




Activities undertaken directly
2024
Grant funding of activities
2024
Total
funds
2024
        £
        £
        £




Core development activites

130,414

8,000

138,414

Marina & pontoons

49,423

-

49,423



179,837
8,000
187,837




Activities undertaken directly
2023
Total
funds
2023
        £
        £



Core development activites

155,671

155,671

Marina & pontoons

49,423

49,423

Affordable housing

1,830

1,830



206,924
206,924



Company


Unrestricted funds
Total
funds

2024
2024

£
£

Core development activites - Direct costs
 176,782
 176,782

Marina & pontoons - Direct costs
 49,423
 49,423

 
 

Total 2024
 226,205
 226,205

Page 27

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

Unrestricted funds
Total
funds

2023
2023

£
£

Core development activites - Direct costs
 158,071
 158,071

Marina & pontoons - Direct costs
 49,423
 49,423

Affordable housing - Direct costs
 1,830
 1,830

 
 

Total 2023
 209,324
 209,324


11.


Auditors' remuneration

The auditors' remuneration amounts to:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Audit services
9,950
9,950
4,450
4,450

Non-audit services
10,464
12,880
3,852
4,215

20,414
22,830
8,302
8,665


12.



Staff costs


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Wages and salaries
84,911
54,573
39,383
33,125

Contribution to defined contribution pension schemes
2,585
1,074
832
807

87,496
55,647
40,215
33,932

The average number of persons employed by the Company during the year was as follows:


Group
Group
Company
Company
2024
2023
2024
2023

No.
No.
No.
No.


Directors
12
11
9
9

Employees
6
3
1
1

18
14
10
10

No employee received remuneration amounting to more than £60,000 in either year.

All staff costs in the Company relate to key management personnel.


Page 28

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

13.


Trustees' remuneration and expenses

During the year, no trustees received any remuneration or other benefits (2023 - £NIL).

During the year ended 31 March 2024, no trustee expenses have been incurred (2023 - £NIL).

Page 29

 


 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY


 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024


14.


Tangible fixed assets


Group






Land
Buildings (inc shore facilities)
Plant and machinery
Motor vehicles
Sheds, tools, allotments, etc
Assets under construction
Total


£
£
£
£
£
£
£



Cost or valuation


At 1 April 2023
140,311
1,549,839
5,767,129
31,473
81,797
-
7,570,549


Additions
-
-
-
-
274
55,649
55,923



At 31 March 2024

140,311
1,549,839
5,767,129
31,473
82,071
55,649
7,626,472



Depreciation


At 1 April 2023
-
247,186
633,322
18,896
63,691
-
963,095


Charge for the year
-
61,995
167,312
3,676
4,599
-
237,582



At 31 March 2024

-
309,181
800,634
22,572
68,290
-
1,200,677



Net book value



At 31 March 2024
140,311
1,240,658
4,966,495
8,901
13,781
55,649
6,425,795



At 31 March 2023
140,311
1,302,653
5,133,807
12,577
18,106
-
6,607,454

Page 30

 


 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY


 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

14.Tangible fixed assets (continued)






Company
Land
Buildings (inc shore facilities)
Plant and machinery
Motor vehicles
Sheds, tools, allotments, etc
Assets under construction
Total

£
£
£
£
£
£
£
Cost or valuation

At 1 April 2023
140,311
1,549,839
501,327
22,973
81,797
-
2,296,247

Additions
-
-
-
-
274
55,649
55,923


At 31 March 2024

140,311
1,549,839
501,327
22,973
82,071
55,649
2,352,170


Depreciation

At 1 April 2023
-
247,186
370,486
16,771
63,691
-
698,134

Charge for the year
-
61,995
35,852
1,551
4,599
-
103,997


At 31 March 2024

-
309,181
406,338
18,322
68,290
-
802,131


Net book value


At 31 March 2024
140,311
1,240,658
94,989
4,651
13,781
55,649
1,550,039


At 31 March 2023
140,311
1,302,653
130,841
6,202
18,106
-
1,598,113


Page 31

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

15.


Fixed asset investments





Unlisted investments

Group
£



Cost or valuation



At 1 April 2023
9,300


Disposals
-



At 31 March 2024

9,300




Net book value




At 31 March 2024
9,300



At 31 March 2023
9,300





Investments in subsidiary companies
Unlisted investments
Total

Company
£
£
£



Cost or valuation





At 1 April 2023
200
9,300
9,500


Disposals
-
-
-



At 31 March 2024

200
9,300
9,500




Net book value






At 31 March 2024
200
9,300
9,500



At 31 March 2023
200
9,300
9,500


16.



Stocks


Group
Group
2024
2023
£
£

Fuel
8,802
4,231

 There were no stocks held by the Company in the current or prior year.

Page 32

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

17.



Debtors


Group
Group
2024
2023
£
£

Due after more than one year

Other debtors
50,000
50,000

Included within other debtors is £50,000 (2022 - £50,000) lodged by MorVolts Limited with Forestry and Land Scotland to provide security for the restoration of the land leased by MorVolts Limited at the end of the lease term.

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Due within one year

Trade debtors
9,646
116,746
-
100

Amounts owed by group undertakings
-
-
12,617
12,250

Other debtors
10,138
1,992
9,687
879

Prepayments and accrued income
195,845
49,868
45,230
11,324

215,629
168,606
67,534
24,553


18.



Creditors: Amounts falling due within one year


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Bank loans
137,918
132,489
1,591
1,468

Other loans
98,826
98,826
5,000
5,000

Trade creditors
51,082
8,838
36,390
7,643

Other taxation and social security
97,610
8,844
-
-

Other creditors
834
164
-
-

Accruals and deferred income
113,551
99,480
9,225
8,791

499,821
348,641
52,206
22,902

Page 33

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

19.



Creditors: Amounts falling due after more than one year


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Bank loans
3,892,620
4,030,230
56,226
57,660

Other loans
1,641,950
1,735,776
-
-

5,534,570
5,766,006
56,226
57,660

The aggregate amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Payable or repayable by instalments
4,443,562
4,752,984
48,431
50,463

4,443,562
4,752,984
48,431
50,463


20.


Creditors: Security

The term loan taken by The Morvern Community Development Company to complete the construction of the affordable housing is secured by a standard security in favour of Triodos Bank UK Limited over the properties concerned. The amount secured at the year end is £59,128.
MorVolts' bank overdrafts and loans are secured by a standard security in favour of Triodos Bank UK Limited over their lease at Barr Forrest and a floating charge over all assets and undertakings of the company. MorVolts' other loan from the Energy Investment Fund (EIF) is secured by a standard security in favour of Scottish Enterprise as administrators of the fund over their lease at Barr Forest.  A ranking agreement is in place giving first charge to Triodos Bank.  In addition, Triodos have the right of set-off for any liability against any accounts held with the bank by the company.  The borrowings secured at the year end from Triodos amount to £4,103,591 and from EIF amount to £1,829,602.

Page 34

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

21.

Deferred taxation

Group

2024
2023
£
£

At the beginning of the period
73,600
-

Charge for the period
75,648
73,600

149,248
73,600


There was no deferred tax charge in the Company in the current or prior year.



The deferred tax liability is made up as follows:
Group
Group
2024
2023
£
£


Accelerated capital allowances
(149,248)
(73,600)


22.


Provisions



Group


Land restoration provision

£



At 1 April 2023
2,500

Additions
1,250


3,750

Page 35

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

23.

Statement of funds


Statement of funds - current year

Balance at 1 April 2023
£
Income
£
Expenditure
£
Transfers in/out
£
Balance at 31 March 2024
£

Unrestricted funds






Designated funds







Fuel Pump Renewal Fund

16,509

-

(1,426)

1,623

16,706
 

General funds







General Funds

1,148,441

1,440,227

(1,114,206)

(2,935)

1,471,527
 
Total Unrestricted funds




1,164,950

1,440,227

(1,115,632)

(1,312)

1,488,233

Restricted funds







Land & Housing

491,921

10,873

(18,558)

1,312

485,548
 
Land & Housing (staff costs)

-

37,500

-

-

37,500
 
Other balances

2,843

-

-

-

2,843
 



494,764
48,373
(18,558)
1,312
525,891

Total of funds


1,659,714
1,488,600
(1,134,190)
-
2,014,124

Page 36

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

23.

Statement of funds (continued)


23.

Statement of funds (continued)



Statement of funds - prior year

Balance at
1 April 2022
£
Income
£
Expenditure
£
Transfers in/out
£
Balance at
31 March 2023
£

Unrestricted funds






Designated funds







Fuel Pump Renewal Fund

16,898

-

(1,901)

1,512

16,509
 

General funds







General Funds

1,207,819

914,236

(987,479)

13,865

1,148,441
 
Total Unrestricted funds




1,224,717

914,236

(989,380)

15,377

1,164,950


Restricted funds







Land & Housing

509,607

-

(18,558)

872

491,921
 
Community Hub

-

9,546

-

(9,546)

-
 
Project/Development Officer

6,020

-

(6,020)

-

-
 
Other balances

2,843

-

-

-

2,843
 
Energy saving trust

-

6,703

-

(6,703)

-
 
Rural Housing Fund

-

4,167

(4,167)

-

-
 



518,470
20,416
(28,745)
(15,377)
494,764


Total of funds


1,743,187
934,652
(1,018,125)
-
1,659,714

Page 37

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

24.


Analysis of funds between parent and group

All restricted funds are held in the Company. The split of unrestricted funds between the Group and Parent is as follows:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Opening balance
1,164,950
1,224,717
1,114,496
1,201,756

Income
1,440,227
914,236
208,628
77,942

Expenditure
(1,115,632)
(989,380)
(207,647)
(180,579)

Transfers
(1,312)
15,377
(1,312)
15,377

Gains
-
-
-
-

Closing balance

1,488,233
1,164,950
1,114,165
1,114,496


Designated
16,706
16,509
16,706
16,509

Unrestricted
1,471,527
1,148,441
1,097,459
1,097,987


1,488,233
1,164,950
1,114,165
1,114,496


25.


Purposes of restricted & designated funds


 
The Land and Housing Fund comprises the land, buildings and mortgage associated with the Affordable Housing project, which are subject to ongoing restriction on their use under the terms of the grant funding.

The Land and Housing (staff costs) fund represents grants received towards the employment of an individual to direct the affordable housing (phase 2) project.

The Project/Development officer represents grants received towards the employment of a Project Officer for MCDC.

The designated Fuel Pump fund has been formed from the balance of the Fuel Pump Renewal Fund, which was used in the year to finance the acquisition of a replacement fuel pump.  The directors' view is that the purpose of this fund is to protect the ability of residents and visitors to Lochaline to purchase fuel and so the asset is included in this fund.  Depreciation will be charged to this fund and transfers made into this fund from the operating profit of the fuel pump to provide for replacement at the end of its useful working life.

Page 38

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

26.

Analysis of net assets between funds

Group - current year

Unrestricted funds
2024
Restricted funds
2024
Total
funds
2024
        £
        £
        £



Tangible fixed assets

5,893,303

532,492

6,425,795

Fixed asset investments

9,300

-

9,300

Debtors due after more than one year

50,000

-

50,000

Current assets

1,665,202

51,216

1,716,418

Creditors due within one year

(498,230)

(1,591)

(499,821)

Creditors due in more than one year

(5,478,344)

(56,226)

(5,534,570)

Provisions for liabilities and charges

(152,998)

-

(152,998)

Total 


1,488,233
525,891
2,014,124



Group - prior year

Unrestricted funds
2023
Restricted funds
2023
Total
funds
2023
        £
        £
        £



Tangible fixed assets

6,056,405

551,049

6,607,454

Fixed asset investments

9,300

-

9,300

Debtors due after more than one year

50,000

-

50,000

Current assets

1,180,864

2,843

1,183,707

Creditors due within one year

(347,173)

(1,468)

(348,641)

Creditors due in more than one year

(5,708,346)

(57,660)

(5,766,006)

Provisions for liabilities and charges

(76,100)

-

(76,100)

Total 

1,164,950
494,764
1,659,714

Page 39

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

26.

Analysis of net assets between funds (continued)

Company - current year


Unrestricted funds
Restricted funds
Total
funds

2024
2024
2024

£
£
£

Tangible fixed assets
 1,017,547
 532,492
 1,550,039

Fixed asset investments
 9,500
 -
 9,500

Current assets
 137,733
 51,216
 188,949

Creditors due within one year
 (50,615)
 (1,591)
 (52,206)

Creditors due in more than one year
 -
 (56,226)
 (56,226)

 
 
 

Total 2024
 1,114,165
 525,891
 1,640,056


Company - prior year


Unrestricted funds
Restricted funds
Total
funds

2023
2023
2023

£
£
£

Tangible fixed assets
 1,047,064
 551,049
 1,598,113

Fixed asset investments
 9,500
 -
 9,500

Current assets
 79,366
 2,843
 82,209

Creditors due within one year
 (21,434)
 (1,468)
 (22,902)

Creditors due in more than one year
 -
 (57,660)
 (57,660)

 
 
 

Total 2023
 1,114,496
 494,764
 1,609,260

Page 40

 


 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY


 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

27.



Reconciliation of net movement in funds to net cash flow from operating activities


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Net income/expenditure for the period (as per Statement of Financial Activities)



354,410

(83,473)

30,796

(110,966)

Adjustments for:

Depreciation charges
237,582
241,200
103,997
107,620

Decrease/(increase) in stocks
(4,571)
7,160
-
-

Decrease/(increase) in debtors
(47,023)
121,773
(42,981)
(2,886)

Increase/(decrease) in creditors
147,001
(36,683)
29,181
(11,625)

Interest paid
322,722
282,781
5,269
3,787

Interest received
(7,904)
(1,686)
(253)
(59)

Tax charge
75,648
73,600
-
-

Net cash provided by operating activities
1,077,865
604,672
126,009
(14,129)



28.



Analysis of cash and cash equivalents


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Cash in hand
1,491,987
1,010,870
121,415
57,656

Total cash and cash equivalents
1,491,987
1,010,870
121,415
57,656


29.



Analysis of changes in net debt





At 1 April 2023
Cash flows
At 31 March 2024
£
£

£

Cash at bank and in hand

1,010,870

481,117

1,491,987

Debt due within 1 year

(231,315)

(5,429)

(236,744)

Debt due after 1 year

(5,766,006)

231,436

(5,534,570)


(4,986,451)
707,124
(4,279,327)

Page 41

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

30.


Pension commitments

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 £2,585 (2023 - £1,074). Of this cost, £832 (2023 - £807) relates to the parent charity.
At the balance sheet date there was £334 (2023 - £164) payable to the pension scheme of which £nil (2023 - £nil) relates to the parent company.. 


31.


Operating lease commitments

At 31 March 2024 the Group and the Company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Group
Group
2024
2023
£
£


Not later than 1 year
1
1

Later than 1 year and not later than 5 years
4
4

Later than 5 years
32
33

37
38

In addition to the annual rental charge of £1, MorVolts is obliged to pay the landlord:
2.5% of gross revenue from commissioning to the 13th anniversary; and
5% thereafter




32.


Related party transactions

The Morvern Community Development Company (MCDC) entered into transactions with its subsidiaries as follows:
Morvern Community Trading Company Limited (MCTC) - MCDC rented office space from MCTC at a cost of £2,400 (
2023 - £2,400) and leased the harbour and marina to MCTC with receipts of £2,500 
(
2023 - £4,500). At the year end, there was a balance of £12,617 due from MCTC to MCDC (2023 -  £12,250). 
MorVolts - MCDC received a donation of £178,233 (
2023 - £50,000) from MorVolts.
The daughter of a director, Isla Robertson, was employed by MCTC as Admin Assistant for the group from 23 July 2023.  During the year, her remuneration amounted to £11,846 (
2023 - £nil)
All other related party transactions to which the group was party were carried out of the same commercial terms as other customers, in particular the supply of fuel and harbour services. 

Page 42

 
THE MORVERN COMMUNITY DEVELOPMENT COMPANY
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

33.


Principal subsidiaries

The following were subsidiary undertakings of the Company, both of which were included in the consolidation:


Names

Company number

Registered office or principal place of business

Holding


Morvern Community Trading Company Ltd
SC441180
Lochaline Harbour, Morvern
100%

MorVolts Limited
SC631215
Lochaline Harbour, Morvern
100%

The financial results of the subsidiaries for the period were:


Names

Income
£

Expenditure
£

Profit/(Loss)/ Surplus/ (Deficit) for the period
£

Net assets
£


Morvern Community Trading Company Ltd
242,044
(245,670)
(3,626)
19,814

MorVolts Limited
1,192,369
(686,896)
505,473
346,841

As part of the loan covenants agreed between MorVolts and Triodos Bank, there are restrictions on the payment of dividends to MCDC based on gearing and interest cover.  The directors do not believe this will impact their plans to benefit from the parent's investment in MorVolts.
Page 43