The Trustees present their annual report and financial statements for the year ended 31 March 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's constitution, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
The Objects of the Trust, as set out in the constitution are:
The advancement of citizenship and community development in North Berwick Harbour and its environs through trade and industry or otherwise;
Providing and organising, or assisting with the provision and organisation of facilities in the interests of social welfare for recreation and leisure-time occupation with the aim of improving the conditions of life for the inhabitants of North Berwick and its environs;
For the benefit of the public to repair, maintain, conserve and improve North Berwick Harbour and the harbour facilities in an efficient and economical manner and to facilitate the efficient and economic transport of goods or passengers by sea;
The advancement of heritage and culture through increased awareness of and greater access to a wide range of activities and events which will be planned to showcase the harbour and its history; and
The advancement of public participation in sport and related activities, e.g. kayaking, rowing and sailing.
As in past years the main activities and efforts have gone into the successful management of the moorings, dinghy park, community lease holders and events taking place, and some of the more recent activities are described under Achievements and Performance.
Our activities are confined to the area under lease from East Lothian Council and we manage the area in a manner designed to achieve our objectives as a Charity. We continue to work with East Lothian Council and liaise with and support our stakeholders and review the requirements of and priorities for the Harbour and its environs for the benefit of the whole community, all in accordance with our objectives for this area.
At the end of October 2023 we had a catastrophic wall failure after storm Babet causing the wall and inner walkway to collapse leaving the inner harbour exposed to the sea and elements. Other than the wall there was no damage to other property and thankfully no one was harmed in the storms at the harbour. A great deal of other damage was done by the storm to walkways, electrics, building flooded, benches, surfaces, and cracks in various sea defences.
The remaining focus for the year was on securing support and funds to start repairs in spring on the wall and were prioritised all spending and effort to focus on major repairs and saving the funds to repair all of the storm related damage.
We are delighted to have been able to re open the walkway and to see the wall completed and the harbour repaired and restored back to its historic looks.
It’s been an amazing effort from all of the community and the support from everyone has enabled all of the work to be completed. It’s been humbling for the Harbour Trust to have so much brilliant support in terms of effort, money and moral support and shows how important the harbour is to all of the local community.
East Lothian Council, the Marine Directorate, North Berwick Trust, North Berwick Harbour Trust, the community and so many of the local organisations have been amazing in terms of the support given and it’s a great example of where we work together we can complete great things. We have no doubts without all the community support and donations we would not have been able to gain the momentum to get the repair started in April and completed in September. A special thanks to all our harbour helpers and the local community, individuals, clubs and businesses for the support and patience.
Not only have we repaired the main wall but have carried out a range of repairs to the wider harbour area including, replacing and repairing the older wedges, resetting the rock armour, improving the drainage, repairing walkways, repairing the electrics, lots of ground works, strengthening the walkway to Galloway pier and many smaller jobs.
We have done all we can to prepare the harbour for the winter and any future storms and whilst we still have worries about other parts of the outer walls we are confident we have done all we can with the support we have. We know there is still a lot to do and concerns remain for the outer walls and we look forward to ongoing support to improve those in the coming years .
We still have some works planned and work will continue with repairs to the granary wall over the next few months in a joint effort from the residents and the Harbour Trust.
We look forward to getting back to normal operations and seeing the harbour improve further.
Most of the focus for the remainder of 2023/24 was on fund raising and consulting with engineers to ensure that the efforts were correctly prioritized.
We continued our program on repairs and improvements but a lot of effort from our volunteers went into rearranging moorings and the layout of the harbour so as many boaurs could continue to operate for the 2024 season.
The harbour remained open although with restricted access.
We continued work on our vison for the future which was well received by East Lothian Council, Stakeholders, community groups and residents and we have drawn up plans to repair and strengthen the sea defences at the northern part of the harbour including community facilities. Planning is still to be approved for that.
Work was completed on the Harbour Slipway which was completely rebuilt and resurfaced, unfortunately we could not save all the stone as it was so badly damaged. NBHTL are grateful to the RNLI for their contribution to the repair work.
We are grateful to East Lothian Council for their commitment to continuing to support the harbour, service the toilets which remain open until a satisfactory solution can be found.
As at the year end the Trust held funds of £305,042 (2023: £430,551), of which £nil (2023: £184,874) comprised the net book value of the harbour wall improvements, £1,883 (2023: £2,092) the net book value of planters, and £14,986 (2023: £19,195) the net book value of other fixed assets. Other restricted funds amounted to £50,998 (2023: £1,422) which includes £49,554 for storm repairs. Designated funds of £171,650 (2023: £175,860) include £158,000 held for storm repairs allocated to wall damage repairs but not restricted for that purpose, leaving unrestricted general funds of £80,511.
The Trustees' policy is that the unrestricted funds not committed or invested in tangible fixed assets, (“the free reserves”), should be sufficient to cover unforeseen emergency expenses and potential staff redundancy cost in the event of a significant drop in funding. A prudent reserves policy is also necessary in the case of stormy weather. The Trustees have retained the minimum amount to keep in free reserves at £70,000. As at the year end, the free reserves amounted to £80,511 (2023: £66,303), which the Trustees consider to be sufficient.
It has long been recognised that the cost total cost of works necessary to secure the infrastructure of the Harbour cannot be met solely from the existing resources of the Trust. Plans for funding major projects and other development work in the Harbour area which require grant assistance have been prepared but applications made to date have been unsuccessful. Work to obtain grant funding is ongoing. We continue to explore prospective funding routes as they become known.
Risk management
The Trustees have assessed the major risks to which the Trust is exposed, in particular those related to the operations and finances of the Trust, and are satisfied that systems are in place to mitigate exposure to the major risks, based on our experience of running and managing the Harbour on behalf of the Council for many years.
The Trustees have addressed the issues of risk management and taken advice wherever required with particular focus on ensuring we meet the requirements of the Port Marine Safety Code as well as providing information to swimmers to be able to do so safely. We continue to work on compliance on all aspects of the Harbour, as laid out in the Good Governance Guide for Trust Port Authorities, and also continued to be compliant with the Marine Safety Management System including Navigational Risk Assessments.
Clearly, in terms of managing the Harbour area, weather and tides and their impact on the buildings and structures in this area, is a major concern. We continue to work closely with our professional advisers in identifying risk and seeking to manage that risk or mitigate its potential impact
The Trustees have developed and published plans for the longer term use of the harbour and community groups and continue to consult with a variety of groups on how to harmonise and make best use of the facilities to benefit all of the town. We are still considering and are looking to progress the impact of prospective ownership of the area, taking account of changing circumstances and the understanding of all relevant matters associated with ownership.
Current matters under review include :-
The Trustees continue to work towards the transfer of the harbour authority to the Trust under the terms of a Harbour Empowerment Order submitted by East Lothian Council and we continue to work with East Lothian Council, Transport Scotland and others to explore the issues associated with this objective.
Succession planning. This is vital to ensure continuity in the management and culture of the Trust. The advantages in terms of succession planning arising from the decision to form a company limited by guarantee has been reported above.
Funding is required in order to allow Trustees to advance the plans which have been approved by Trustees, forming a vision as to how the Harbour and its environs will look and how it will be managed in years to come.
The charity is a company limited by guarantee and is governed by its articles of association dated 9 July 2021.
North Berwick Harbour Trust Limited (company number SC703757 and charity number SC051691) was established to replace North Berwick Harbour Trust Association (charity number SC045318), an unincorporated charity. The operations, assets and liabilities of North Berwick Harbour Trust Association have been transferred to North Berwick Harbour Trust Limited with an effective date of 31 March 2023.
The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
The following individuals were trustees of North Berwick Harbour Trust Association but are not directors of North Berwick Harbour Trust Limited: Brian Anderson, Colin Aston, Sam Lowe, David Farmer, Hugh MacKenzie, Judy Lockhart and Stirling Stewart.
Trustees are recruited by one of two means; an advert in the local press, (East Lothian Courier), followed by an interview with two existing Trustees, or word of mouth locally, with a similar interview. The latter tends to involve individuals who are known to have an interest in the Harbour, and whose identity is known to existing Trustees.
We continue to published our compliance with the Good Governance for Trust Ports recommendations for Safety Management System, and Navigational Risk Assessment and continue looking to building on our standard operations procedures. We are continually reviewing and developing the recommended approach on all aspects of managing within the Harbour area.
None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £10 in the event of a winding up.
The trustees' report was approved by the Board of Trustees.
The Trustees, who are also the directors of North Berwick Harbour Trust Limited for the purpose 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 year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
I report on the financial statements of the charity for the year ended 31 March 2024, which are set out on pages 7 to 19.
The charity’s Trustees, who are also the directors of North Berwick Harbour Trust Limited for the purposes of company law, are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investments (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The Trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the 2006 Accounts Regulations does not apply. It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Act and to state whether particular matters have come to my attention.
My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeks explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the financial statements.
In connection with my examination, no matter has come to my attention:
to keep accounting records in accordance with section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;
to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
North Berwick Harbour Trust Limited is a private company limited by guarantee incorporated in Scotland. The registered office is The Harbour Master's Office, 28 Victoria Road, North Berwick, East Lothian, EH39 4JL.
The financial statements have been prepared in accordance with the charity's constitution, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for smaller charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
Following the extensive damage to the Harbour wall in October 2023, amounts previously capitalised have been written off to the Statement of Financial Activities as an asset disposal.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charity 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.
Debtors
Prepayments are valued at the amounts prepaid. Accrued income and tax recoverable is included at the best estimate of the amount receivable at the balance sheet date. Other debtors are recognised at the settlement amount.
Creditors
Creditors and provisions are recognised where a present obligation from a past event will probably result in the transfer of funds to a third party and the amount to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
North Berwick Trust
Visitor and film income
Harbour moorings
Dinghy Park
Changing rooms
Canoe rack
Passenger levy received
Rental income
Electricity payment received
No fees or expenses have been paid to the trustees during the current or previous years. All trustees act gratuitously and receive no remuneration. No trustees incurred expenses during either the current period or previous years.
The trustees are considered to be the Key Management Personnel.
The average monthly number of employees during the year was:
The day to day operation of the Harbour is overseen by the Harbour Master, who is an employee of East Lothian Council.
The charity is exempt from tax on income and gains to the extent that these are applied to its charitable objects.
Following the extensive damage to the Harbour wall in October 2023, amounts previously capitalised have been written off to the Statement of Financial Activities as an asset disposal.
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
Harbour wall improvement
During 2015 the Trust received grant funding to make improvements to the harbour wall. The cost of the work was capitalised as tenant improvements, so the closing fund balance represents the net book value of the assets as at the period end. Following the extensive damage to the Harbour wall in October 2023, amounts previously capitalised have been written off to the Statement of Financial Activities as an asset disposal.
Jubilee Stalls
This fund represents income and expenditure in connection with the celebrations for the Platinum Jubilee of Queen Elizabeth II.
RNLI Slip Repairs
This fund represents income and expenditure in connection with the repairs to the RNLI slipway where 80% of the money spent on these repairs was covered by restricted donations.
Storm Repairs
This fund represents income and expenditure relating to storm repairs.
Benches and nameplate
This fund represents income and expenditure for benches. .
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
Designated fixed asset fund
This fund represents the net book value of fixed assets acquired using general funds of the Trust or restricted funds where the restriction has been met with the purchase of the asset. Where the latter occurs, a transfer is made from the relevant restricted fund.
Scheduled works reserve
This reserve represents amounts set aside for scheduled maintenance works and structural surveys.
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
At the reporting end date the charity had contracted with tenants for the following minimum lease payments:
There were no disclosable related party transactions during the year (2023 - none).
No individual had control of the Trust in the period.