MID ARGYLL COMMUNITY ENTERPRISES LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Charity Registration No. SC020084
Company Registration No. SC137229
MID ARGYLL COMMUNITY ENTERPRISES LIMITED
LEGAL AND ADMINISTRATIVE INFORMATION
Directors
Mr C W Campbell
Ms K L Shaw
Mr J M Gurr
Mr M Cameron
Ms A C Whitefield
Mrs K Macaulay
Mrs K J Grant
Mr S A Turner
Ms F Cairns Smith
(Appointed 10 April 2024)
Ms l Finlay
(Appointed 10 April 2024)
Secretary
Mrs Alison Cameron Whitefield
Charity number (Scotland)
SC020084
Company number
SC137229
Principal address
Mid Argyll Community Enterprises Limited
Oban Road
Lochgilphead
Argyll
PA31 8NG
Registered office
Mid Argyll Community Enterprises Limited
Oban Road
Lochgilphead
Argyll
PA31 8NG
Independent examiner
Iain D C Webster CA
The Old Surgery
School Road
Tarbert
Argyll
PA29 6UL
Bankers
The Co-operative Bank
www.co-operativebank.co.uk
MID ARGYLL COMMUNITY ENTERPRISES LIMITED
CONTENTS
Page
Directors' report
1 - 5
Independent examiner's report
6
Statement of financial activities
7
Statement of financial position
8
Statement of cash flows
9
Notes to the financial statements
10 - 25
MID ARGYLL COMMUNITY ENTERPRISES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The Directors present their report and financial statements for the year ended 31 March 2024. This report also serves as the Trustees' report.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's Memorandum and Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)"

 

Mission Statement

 

Mid Argyll Community Pool (MACPool) is a social enterprise enabling the community to swim and take part in sports, leisure and social activities in support of health and well-being. We deliver this through quality in our facilities, service and partnerships.

MID ARGYLL COMMUNITY ENTERPRISES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Objectives and activities

Our key objective is to provide and promote swimming and water-based activities for the whole community of Mid Argyll. We do this through the provision of facilities and programmes for people of all ages and abilities.

 

The Manager and staff are responsible for the day-to-day business of running the MACPool Activity Hub, based on the overall strategy agreed with the Board of Directors. In the past year MACPool has faced 3 major challenges around staffing, the condition and reliability of our infrastructure and sufficient finances to be able to say we are a going concern. We have the following aims to ensure we can address these issues

 

  1. To ensure we have well trained and motivated staff

In the past year we have also seen a higher turnover in our more experienced supervisors and management staff. We have investigated some of the reasons behind this with pay, working environment and working hours being the areas of concern. We have recruited and trained 11 lifeguards, 4 swim teachers, 2 supervisors and 2 managers in the last year. We have looked closely at pay rates and the environment in which people work to ensure MACPool staff are paid appropriately, and our new manager has been working hard to ensure we have a friendly supportive environment, that makes people feel valued and want to work here.

 

We are grateful to Alida Achermann for taking on the role as MACPool Activity Hub Manager in November who has helped us develop our future ambition to:

 

 

Improving our swim teacher training and extending this into other activities, not only supports our future business plans, but also evidences to our staff that they have a career at MACPool, not just a stepping stone to somewhere else. This will also provide new pathways for our customers, by ensuring that we can meet local demand for swimming lessons and adding lifesaving skills training to our services as a clear progression route for young people in Mid Argyll.

2. To manage efficient, well-maintained plant and buildings

In 2021/22 MACPool undertook a major redevelopment programme to improve the changing facilities and utilise the space provided by adjacent buildings. We now have a reception and changing village that supports the numbers of people using the facilities. We have a thriving café, and soft play area for younger children as well as leased rooms to a fitness and a beauty treatment business who increase the services we can offer.

 

However, with a near 30 year old pool we have to constantly service and maintain our plant, update our IT systems and monitor and maintain the fabric of the existing buildings. Over the next 3 years we will be focusing on 3 areas:

MID ARGYLL COMMUNITY ENTERPRISES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

We are currently undertaking a survey of our pool roof as there are signs of wear, and we need to ensure this 30 year old roof is fit for purpose. We should know more about its condition once we have the results of the survey at the end of the summer to be able to plan funding for its repair or replacement over the next 18 months.

Some of our plant is relatively new but there are 3 areas where we are experiencing problems and will be looking at ways of improving or replacing them to prevent future short term pool closures.

Our website, learn to swim programme, booking and payment systems are old and do not talk to each other. This means it is difficult to update, maintain accurate data and often people can book out classes without paying and not show up for the activity reducing our income denying opportunities for others to use the pool.

 

We need to invest in our IT systems and develop this infrastructure so that it is fit for purpose, reduces administration time and improves our income.

Any investment in infrastructure is going to require funding and we will need to seek support for this separately once we have developed a plan and identified costs.

3. To have sufficient finances to run our operations

Our costs have been higher than our income over the past 2 years, with the living wage up by 25%, energy costs up by 60% and maintenance costs increasing.

Income is growing but not in line with costs, our sales income is up by 18%, our buildings are freehold and support from A&B Council, A’Chruach, Foundation Scotland and other local Doners provide 1/3 of MACPool income.

In 2022 MACPool had £140k in unrestricted reserves, however with continued losses our unrestricted reserves have eroded and in March we had just under £22k of free reserves, which is less than 2 months running costs. To ensure our charity remains a going concern we must ensure our income from our activities plus grants cover the cost of running the pool. We must also ensure we have sufficient reserves to cover 3 months costs to cope with business shocks such as the boiler failure early this year. In February this year we set out a plan to deliver an extra £50k pa for the next 3 years to maintain long term viability in Mid Argyll. We planned to achieve this by:

In 2023/24 our grants and donations have increased to help with rising costs. A&B Council contributes 25% of our costs, and for in 2023-2025 have provided and extra £30k to support energy costs but this will no longer be available from March 2025. We have also received valuable support from Foundation Scotland and A’Chruach of £10,000 p.a. from 2023 to 2026 which has again supported our costs.

The good news for 2024-25 onwards is we have been awarded £71k over the next 3 years by A’Chruach and Foundation Scotland which will allow us to purchase a new disabled hoist, complete swim teacher training to enable us to rebuild our own income and provide funds to support day to day operations and rebuild our reserves. We have a number of initiatives which will help us control costs including renegotiating our utility contracts which should save an additional £10k from mid-2024.

MID ARGYLL COMMUNITY ENTERPRISES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
Achievements and performance

Outlook

 

The year to March 2024 has been a difficult year rebuilding the MACPool team, juggling our finances and coping with aging plant and buildings. Looking forward we have a plan to complete staff training, grow our business and develop the finances to ensure MACPool continues to provide swimming opportunities to the people of Mid Argyll.

 

By the Autumn of 2024 we should have a report on the condition of the roof and a plan to address improving our plant and IT infrastructure. Once we know the costs and timescales involved, we can then develop a plan to finance and prioritise this work.

 

Financial review

The operating result (before transfers) for the year was a deficit of £100,586, with a deficit in relation to the unrestricted fund being £29,523 for the year and the balance made up of depreciation on assets. We lost £10k as a result of a boiler failure in January/February, have seen staffing costs rise due to the living wage increases and electricity costs increased by over £27k. We had budgeted a break even budget after receiving a £30,000 additional fund from Argyll and Bute council for this year only and a 3 year grant from A'Chruach. In March we had reserves of £22,000 on the unrestricted fund which represents less than 2 months costs.

 

Owing to the redevelopment to the Pool now having reached its completion, the Trustees have taken the decision to reclassify the asset (being the Pool building and capitalised redevelopment expenditure) as unrestricted in accordance with accounting policies outlined by OSCR. The result is a significant reduction to the amount of restricted funds at the balance sheet date reducing from £2,363,189 to £151,184 for which the residual balance represents funding secured for restricted purposes. Further details can be found within the notes to the accounts at Notes 21 and 23 outlining the various grant support received by the Charity for the redevelopment.

 

The Trustees further emphasise that whilst on paper the Pool has significant reserves, the majority of funds are held in non-liquid, non-moving assets for which cannot be readily converted to cash or cash equivalents.

 

We do not have reserves to complete any further major work but will be looking to secure funding to resurface the carpark and refurbish the road drainage during 2023-24.

 

Structure, governance and management

 

Mid Argyll Community Enterprises Ltd (MACEL) is a company limited by guarantee having no share capital, with charitable status in Scotland. The charity's objects are to advance education through the provision of skills in swimming and life saving.

The Directors, who are also the directors for the purpose of company law, and who served during the year were:

Mr C W Campbell
Ms K L Shaw
Mr J M Gurr
Mr M Cameron
Ms A C Whitefield
Mr J E Ross
(Resigned 14 August 2024)
Mrs K Macaulay
Mrs K J Grant
Mr S A Turner
Ms F Cairns Smith
(Appointed 10 April 2024)
Ms l Finlay
(Appointed 10 April 2024)
MID ARGYLL COMMUNITY ENTERPRISES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -

The Board of Directors held regular meetings throughout the year to develop and set strategy as well as to consider reports submitted by key staff and consultants, as deemed necessary. Board Meetings were recorded by Alison Whitefield in 2023 and we welcomed our new minute secretary, Jane Smee in January. The Board would like to thank Alison and Jane for all their hard work over the year.

 

The Directors have assessed the major risks to which the charity is exposed and have satisfied themselves that the necessary systems are in place to mitigate exposure to major risks.

The Directors' report was approved by the Board of Directors.

Mr J M Gurr
Director
Dated: 12 November 2024
MID ARGYLL COMMUNITY ENTERPRISES LIMITED
INDEPENDENT EXAMINER'S REPORT
TO THE DIRECTORS OF MID ARGYLL COMMUNITY ENTERPRISES LIMITED
- 6 -

I report on the financial statements of the charity for the year ended 31 March 2024, which are set out on pages 7 to 25.

Respective responsibilities of Directors and examiner

The charity’s directors, who also act as trustees for the charitable activities of Mid Argyll Community Enterprises Limited, 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 Directors 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.

Basis of independent examiner's statement
My examination is carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations 2006 (as amended).  An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records.  It also includes consideration of any unusual items or disclosures in the accounts, and 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 accounts.
Independent examiner's statement

In connection with my examination, no matter has come to my attention:

 

(a)

which gives me reasonable cause to believe that in any material respect the requirements:

(i)

to keep accounting records in accordance with section 44(1)(a) of the Charities and Trustees Investment (Scotland) 2005 Act and Regulation 4 of the Charities Accounts (Scotland) Regulations 2006 (as amended); and

(ii)

to prepare accounts which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations (as amended)

have not been met or
(b)

to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Iain D C Webster CA

The Old Surgery
School Road
Tarbert
Argyll
PA29 6UL
Dated: 12 November 2024
MID ARGYLL COMMUNITY ENTERPRISES LIMITED
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2024
2024
2024
2023
2023
2023
Notes
£
£
£
£
£
£
Income and endowments from:
Donations and legacies
3
1,144
-
1,144
1,113
-
1,113
Charitable activities
6
164,371
8,400
172,771
101,873
11,102
112,975
Other trading activities
4
158,889
-
158,889
169,057
-
169,057
Investments
5
3,227
-
3,227
739
-
739
Other income
8
26,449
-
26,449
23,582
-
23,582
Total income
354,080
8,400
362,480
296,364
11,102
307,466
Expenditure on:
Raising funds
7
5,821
-
5,821
17,093
225
17,318
Charitable activities
9
377,782
79,463
457,245
346,042
93,621
439,663
Total expenditure
383,603
79,463
463,066
363,135
93,846
456,981
Net expenditure
(29,523)
(71,063)
(100,586)
(66,771)
(82,744)
(149,515)
Transfers between funds
2,140,942
(2,140,942)
-
(6,535)
6,535
-
Net movement in funds
10
2,111,419
(2,212,005)
(100,586)
(73,306)
(76,209)
(149,515)
Reconciliation of funds:
Fund balances at 1 April 2023
34,596
2,363,189
2,397,785
107,902
2,439,398
2,547,300
Fund balances at 31 March 2024
2,146,015
151,184
2,297,199
34,596
2,363,189
2,397,785

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

MID ARGYLL COMMUNITY ENTERPRISES LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2024
31 March 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Property, plant and equipment
15
2,239,938
2,330,980
Current assets
Trade and other receivables
16
23,277
36,633
Cash at bank and in hand
185,871
265,521
209,148
302,154
Current liabilities
17
(49,318)
(113,871)
Net current assets
159,830
188,283
Total assets less current liabilities
2,399,768
2,519,263
Non-current liabilities
18
(93,404)
(104,663)
Deferred income
20
(9,165)
(16,815)
Net assets
2,297,199
2,397,785
The funds of the charity
Restricted income funds
21
151,184
2,363,189
Unrestricted funds
2,146,015
34,596
2,297,199
2,397,785

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2024.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Directors on 12 November 2024
Mr J M Gurr
Director
Company registration number SC137229 (Scotland)
MID ARGYLL COMMUNITY ENTERPRISES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
26
(103,751)
(91,300)
Investing activities
Purchase of property, plant and equipment
(4,683)
(204,498)
Proceeds from disposal of property, plant and equipment
25,557
-
Investment income received
3,227
739
Net cash generated from/(used in) investing activities
24,101
(203,759)
Financing activities
Repayment of borrowings
-
(18,318)
Net cash used in financing activities
-
(18,318)
Net decrease in cash and cash equivalents
(79,650)
(313,377)
Cash and cash equivalents at beginning of year
265,521
578,898
Cash and cash equivalents at end of year
185,871
265,521
MID ARGYLL COMMUNITY ENTERPRISES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
1
Accounting policies
Charity information

Mid Argyll Community Enterprises Limited is a private company limited by guarantee incorporated in Scotland. The registered office is Mid Argyll Community Enterprises Limited, Oban Road, Lochgilphead, Argyll, PA31 8NG.

1.1
Accounting convention

The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

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 accounts have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

The Directors believe that Argyll and Bute Council will continue to provide revenue grant support (by way of an ongoing contract of services) to the company and, on this basis, consider it appropriate to prepare the accounts on the going concern basis.

1.3
Charitable funds

Unrestricted funds are available for use at the discretion of the Directors in furtherance of the charitable objectives unless the funds have been designated for other purposes.

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.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.4
Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

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.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
Turnover represents amounts receivable from those wishing to make use of the facilities available at the swimming pool.
MID ARGYLL COMMUNITY ENTERPRISES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 11 -
1.5
Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure. it is probable that settlement will be required and the amount of the obligation can be measured reliably.

 

All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings.

 

Irrecoverable VAT is charged as a cost against the activity for which the expenditure is incurred.

1.6
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Land and buildings
2% straight line on cost
Plant and machinery
5-20% straight line on cost
Soft Play & equipment
10% straight line
Computers
20% straight line

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.

1.7
Impairment of non-current assets

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).

1.8
Cash and cash equivalents

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.

1.9
Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables 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.

MID ARGYLL COMMUNITY ENTERPRISES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
Basic financial liabilities

Basic financial liabilities, including trade and other payables 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.10
Employee benefits

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.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2
Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Directors 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.

3
Income from donations and legacies
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Donations and gifts
1,144
1,113

 

MID ARGYLL COMMUNITY ENTERPRISES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
4
Income from other trading activities
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£

Pool admissions, memberships and associated income

158,889
169,057
5
Income from investments
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Interest receivable
3,227
739
MID ARGYLL COMMUNITY ENTERPRISES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
6
Charitable activities
Revenue support
Revenue support
2024
2023
£
£
Services provided under contract
110,074
70,342
Performance related grants
27,200
19,902
Charitable rental income
35,497
22,731
172,771
112,975
Analysis by fund
Unrestricted funds
164,371
101,873
Restricted funds
8,400
11,102
172,771
112,975
Performance related grants
A'Chruach Fund (UF)
10,000
-
Argyll & Bute Council (RF)
2,400
5,935
Highlands and Islands Enterprise (RF)
-
5,167
MAYDS (RF)
6,000
-
Argyll & Bute Council (UF)
8,800
8,800
Other
-
-
27,200
19,902

(UF) = unrestricted, (RF) = Restricted funds.

7
Expenditure on raising funds
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2024
2024
2024
2023
2023
2023
£
£
£
£
£
£
Cost of goods sold

Cost of merchandise, Cafe and other pool supplies for resale

5,821
-
5,821
17,093
225
17,318
MID ARGYLL COMMUNITY ENTERPRISES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
8
Other income
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Other income - RHI/FIT
26,449
23,582
MID ARGYLL COMMUNITY ENTERPRISES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
9
Charitable activities
Service provision
Pool costs
Total
2024
Service provision
Pool costs
Total
2023
2024
2024
2023
2023
£
£
£
£
£
£
Staff costs
196,804
-
196,804
196,038
-
196,038
Depreciation and impairment
-
70,168
70,168
-
70,617
70,617

Heat & Light (UF)

-
73,323
73,323
-
55,069
55,069

Repairs & maintenance (UF)

-
31,775
31,775
-
35,901
35,901

Cleaning (UF)

-
16,005
16,005
-
13,060
13,060

Telephone (UF)

-
1,474
1,474
-
1,567
1,567

Bank charges (UF)

-
2,366
2,366
-
1,876
1,876

Loan interest (UF)

-
-
-
-
488
488

General (UF)

-
1,643
1,643
-
1,428
1,428

Health and Safety

-
847
847
-
879
879

Uniforms

-
228
228
-
881
881
196,804
197,829
394,633
196,038
181,766
377,804
Share of support costs (see note 11)
51,823
-
51,823
55,186
-
55,186
Share of governance costs (see note 11)
10,789
-
10,789
6,673
-
6,673
259,416
197,829
457,245
257,897
181,766
439,663
Analysis by fund
Unrestricted funds
251,422
126,360
377,782
242,259
103,783
346,042
Restricted funds
7,994
71,469
79,463
15,638
77,983
93,621
259,416
197,829
457,245
257,897
181,766
439,663
MID ARGYLL COMMUNITY ENTERPRISES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
10
Net movement in funds
2024
2023
£
£
The net movement in funds is stated after charging/(crediting):
Fees payable for the audit of the charity's financial statements
-
1,646
Depreciation of owned property, plant and equipment
70,168
70,617
MID ARGYLL COMMUNITY ENTERPRISES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
11
Support costs
Support costs
Governance costs
2024
Support costs
Governance costs
2023
£
£
£
£
£
£

Rates & insurance (UF)

24,228
-
24,228
27,607
-
27,607

Stationery & postage (UF/RF)

5,306
-
5,306
4,683
-
4,683

Marketing (RF/UF)

714
-
714
1,627
-
1,627

Travel (UF)

281
-
281
296
-
296

Training (UF and RF)

9,522
-
9,522
11,885
-
11,885

Irrecoverable VAT (UF)

7,827
-
7,827
7,813
-
7,813

Instructors

3,945
-
3,945
1,275
-
1,275
Audit fees
-
-
-
-
1,646
1,646

Bookkeeping

-
1,691
1,691
-
3,458
3,458

Professional fees (RF / UF)

-
8,048
8,048
-
569
569

Independent Examination

-
1,050
1,050
-
1,000
1,000
51,823
10,789
62,612
55,186
6,673
61,859
Analysed between
Charitable activities
51,823
10,789
62,612
55,186
6,673
61,859

Governance costs includes payments to the Independent Examiners of £1,050 for Independent Examination fees (2023 - £1,000) and £1,691 for other services (2023 - £3,458).

 

MID ARGYLL COMMUNITY ENTERPRISES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
12
Directors
None of the Directors (or any persons connected with them) received any remuneration or benefits from the charity during the year.
13
Employees

The average monthly number of employees during the year was:

2024
2023
Number
Number
Management posts
2
2
Pool staff
12
13
Total
14
15
Employment costs
2024
2023
£
£
Wages and salaries
186,859
189,383
Social security costs
6,339
3,729
Other pension costs
3,606
2,926
196,804
196,038
There were no employees whose annual remuneration was more than £60,000.
14
Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

MID ARGYLL COMMUNITY ENTERPRISES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
15
Property, plant and equipment
Land and buildings
Plant and machinery
Soft Play & equipment
Computers
Total
£
£
£
£
£
Cost
At 1 April 2023
2,543,739
385,409
44,024
-
2,973,172
Additions
-
-
-
4,683
4,683
Disposals
(25,557)
-
-
-
(25,557)
At 31 March 2024
2,518,182
385,409
44,024
4,683
2,952,298
Depreciation and impairment
At 1 April 2023
426,916
208,672
6,604
-
642,192
Depreciation charged in the year
50,364
13,020
5,613
1,171
70,168
At 31 March 2024
477,280
221,692
12,217
1,171
712,360
Carrying amount
At 31 March 2024
2,040,902
163,717
31,807
3,512
2,239,938
At 31 March 2023
2,116,823
176,737
37,420
-
2,330,980

 

16
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
5,183
22,524
Other receivables
16,426
3,667
Prepayments and accrued income
1,668
10,442
23,277
36,633
17
Current liabilities
2024
2023
£
£
Other taxation and social security
14,205
13,924
Trade payables
14,607
78,975
Other payables
13,621
13,383
Accruals and deferred income
6,885
7,589
49,318
113,871
MID ARGYLL COMMUNITY ENTERPRISES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
18
Non-current liabilities
2024
2023
£
£
Other taxation (VAT - CGS)
93,404
104,663
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
3,606
2,926

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

20
Deferred income
2024
2023
£
£
Grant and other income received
9,165
16,815
9,165
16,815

Deferred income comprise of amounts received for which the services to be delivered fall into the following financial year.

MID ARGYLL COMMUNITY ENTERPRISES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
21
Restricted funds

The restricted funds of the charity represent the net book value of the assets held for the charity's use and the unexpended portions of funds received for specific purposes.

At 1 April 2023
Incoming resources
Resources expended
Transfers
At 31 March 2024
£
£
£
£
£
Main pool building
382,182
-
(68,997)
(313,185)
-
Redevelopment costs (complete)
1,810,731
-
-
(1,810,731)
-
VAT provision
129,329
-
-
(11,521)
117,808
Redevelopment funds (available)
30,358
-
(6,755)
-
23,603
Foundaton Scotland
1,692
-
-
-
1,692
Paths for All
327
-
-
-
327
Health & Wellbeing Trust
485
-
-
-
485
W G Edwards Charitable Trust
756
-
-
-
756
Living Well Fund (NHS)
785
-
-
-
785
Tai Chi
453
-
-
-
453
Scottish Land Fund
924
-
-
-
924
Highlands & Islands Enterprises
5,167
-
(1,416)
-
3,751
Argyll & Bute Council
-
2,400
-
(1,800)
600
MAYDS
-
6,000
(2,295)
(3,705)
-
2,363,189
8,400
(79,463)
(2,140,942)
151,184
Previous year:
At 1 April 2022
Incoming resources
Resources expended
Transfers
At 31 March 2023
£
£
£
£
£
Main pool building
434,481
-
(70,617)
18,318
382,182
Redevelopment costs (complete)
1,744,300
-
-
66,431
1,810,731
VAT provision
141,112
-
(11,783)
-
129,329
Redevelopment funds (available)
110,158
-
(13,369)
(66,431)
30,358
Foundaton Scotland
1,692
-
-
-
1,692
Paths for All
1,594
5,935
(7,202)
-
327
Health & Wellbeing Trust
485
-
-
-
485
W G Edwards Charitable Trust
756
-
-
-
756
Living Well Fund (NHS)
2,549
-
(1,764)
-
785
Tai Chi
453
-
-
-
453
Scottish Land Fund
924
-
-
-
924
Highlands & Islands Enterprises
-
5,167
-
-
5,167
HSCF
177
-
(177)
-
-
Firstport
121
-
(121)
-
-
Hendrix Genetics
596
-
(596)
-
-
2,439,398
11,102
(105,629)
18,318
2,363,189
MID ARGYLL COMMUNITY ENTERPRISES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
21
Restricted funds
(Continued)
- 23 -

Restricted Funds

The restricted funds of the charity represent unexpended portions of funds received for specific purposes as detailed below.

Redevelopment Project

The funds received for the Redevelopment project, as shown at Note 23, have been transferred to unrestricted reserves as outlined in the transfer note below.

The funds held as a VAT provision represents capital costs where VAT was claimed which is subject to the Capital Goods Scheme on which future VAT liabilities are to be met from these grants.

Redevelopment funds totalling £23,603 represent unexpended funds held for the redevelopment of the Pool.

Other restricted funding includes:

Foundation Scotland – Funding for ‘Float Fit’ equipment, training and delivery of classes.

Health and Social Care Fund – Funding received from the Argyll & Bute Health and Social Care Partnership to run an All Ability Cycling Project. In partnership with Ardrishaig Bothy and Cycling UK to purchase equipment and deliver training and bike classes.

Paths for All – Funding for training and to deliver health walks in the local community.

WG Edwards Charitable Foundation – Funding received to Subsidise Movement for Life class for Leisure Link Members.

Tai Chi – A donation received to subsidise swimming lessons for children.

Dolphins Swimathon – Donations for the redevelopment.

Living Well (NHS) – Funding received from NHS Highland to subsidies Movement and Mobility classes.

Mid Argyll Youth Development Service (MAYDS) - To ongoing support with lifeguard training and general entry into the pool.

Scottish Land Fund - To support ongoing costs with the pool.

Highland and Islands Enterprise - To the purchase of various IT equipment.

Argyll & Bute Council - To provide concessionary rates for entry to the pool for individuals who are on benefits

Transfers

The transfer from restricted funds of £2,140,942 consist of the following:

 

The Trustees, when reviewing paragraph 2.26 of the Statement of Reporting Principals as issued by OSCR and the Charities Commission (England and Wales) have decided to transfer such funds to the unrestricted reserve. This is due to the primary purpose of the pool buildings being to generate unrestricted funds for the charity which are used to meet ongoing and future running costs.

 

The Trustees wish to acknowledge the support of various funding bodies which are set out separately at Note 23.

MID ARGYLL COMMUNITY ENTERPRISES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
22
Unrestricted funds

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.

At 1 April 2023
Incoming resources
Resources expended
Transfers
At 31 March 2024
£
£
£
£
£
General funds
34,596
354,080
(383,603)
2,140,942
2,146,015
Previous year:
At 1 April 2022
Incoming resources
Resources expended
Transfers
At 31 March 2023
£
£
£
£
£
General funds
107,902
296,364
(363,135)
(6,535)
34,596
23
Bodies involved with the redevelopment of the pool

Redevelopment Project

The Trustees wish to acknowledge the support of the bodies below who offered grant and other support for the redevelopment of the pool in 2023:

 

Some of the above funding was a combination of revenue and capital elements.

 

Other auxillery funding includes:

MID ARGYLL COMMUNITY ENTERPRISES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
24
Analysis of net assets between funds
Unrestricted
Restricted
Total
funds
funds
2024
2024
2024
£
£
£
At 31 March 2024:
Property, plant and equipment
2,239,938
-
2,239,938
Current assets/(liabilities)
8,646
151,184
159,830
Long term liabilities
(93,404)
-
(93,404)
Provisions and deferred income
(9,165)
-
(9,165)
2,146,015
151,184
2,297,199
Unrestricted
Restricted
Total
funds
funds
2023
2023
2023
£
£
£
At 31 March 2023:
Property, plant and equipment
-
2,330,980
2,330,980
Current assets/(liabilities)
156,074
32,209
188,283
Long term liabilities
(104,663)
-
(104,663)
Provisions and deferred income
(16,815)
-
(16,815)
34,596
2,363,189
2,397,785
25
Related party transactions

There were no disclosable related party transactions during the year or for the previous year.

26
Cash generated from operations
2024
2023
£
£
Deficit for the year
(100,586)
(149,515)
Adjustments for:
Investment income recognised in statement of financial activities
(3,227)
(739)
Depreciation and impairment of property, plant and equipment
70,168
70,617
Movements in working capital:
Decrease in trade and other receivables
13,356
83,460
(Decrease) in trade and other payables
(75,812)
(110,822)
(Decrease)/increase in deferred income
(7,650)
15,699
Cash absorbed by operations
(103,751)
(91,300)
27
Analysis of changes in net funds

The charity had no material debt during the year.

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