REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
Report of the Trustees and |
Unaudited Financial Statements for the Year Ended 31 May 2024 |
for |
The Embo Trust (Urras Euraboil) |
REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
Report of the Trustees and |
Unaudited Financial Statements for the Year Ended 31 May 2024 |
for |
The Embo Trust (Urras Euraboil) |
The Embo Trust (Urras Euraboil) |
Contents of the Financial Statements |
for the Year Ended 31 May 2024 |
Page |
Report of the Trustees | 1 | to | 3 |
Independent Examiner's Report | 4 | to | 5 |
Statement of Financial Activities | 6 |
Balance Sheet | 7 | to | 8 |
Notes to the Financial Statements | 9 | to | 16 |
The Embo Trust (Urras Euraboil) (Registered number: SC330264) |
Report of the Trustees |
for the Year Ended 31 May 2024 |
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 May 2024. The trustees have adopted the provisions of 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). |
OBJECTIVES AND ACTIVITIES |
Objectives and aims |
The Articles of Association detail the purposes (4.0 to 4.6) and powers (5.0 to 5.25) of the company. In outline the purposes are to manage its land and assets for the benefit of the community as defined by the given postcode units following principles of sustainable development. |
Volunteers |
The Trust is fully insured with Victor for all its activities. The Public Entertainment licence is due for renewal in January 2026. |
ACHIEVEMENT AND PERFORMANCE |
Charitable activities |
Trading Arm |
Embo Trust (Trading) was dissolved on 2nd July 2024. |
Trust Activities |
The new Board of Directors were elected on 31/5/23. The immediate action was to find a tenant for the Café operation. Between June and August, four parties expressed an interest but, having inspected core costs, no party followed up their interest. It was thus obvious that a complete change of business plan was necessary to reduce expenditure to a minimum, and the Council Assessor was approached to remove all commercial identity from the Trust record on the Council business rates list. This was agreed retrospective to the start of the financial year. Negotiations then started with the utility providers to seek such charitable exemption from charges as could be conceded. |
BIG Lottery were immediately informed of this change of plan, agreed it was necessary, and awarded transition funding of £19,600 to assist the move to the more sustainable operating model of the premises being solely and simply a village hall. |
On this basis, fundraising was pursued through occasional hires of the premises, events such as Burns Night and Indian Night, and the establishment of the 200 Club in January 2024. |
The Post Office continues to provide its resilience outreach service on Tuesday and Thursday mornings. |
FINANCIAL REVIEW |
Financial position |
At the end of the year, the total reserves held by the charity were £1,117,962 (2023 - £1,139,474) of which £1,075,761 were restricted (£1,105,854, - 2023). At the end of the year, the charity had £42,201 (2023 - £33,620) in unrestricted funds, of which £38,782 was held in the bank (2023 - £23,159).. |
The Embo Trust (Urras Euraboil) (Registered number: SC330264) |
Report of the Trustees |
for the Year Ended 31 May 2024 |
FINANCIAL REVIEW |
Principal funding sources |
Main grant funding came from the BIG Lottery, with additional contributions from the Ward 4 Discretionary Fund, the Beinn Tharsuinn Fund, and the Sutherland Drug & Alcohol Forum. The new 200 Club provided an immediate injection of funds at the start of 2024. |
Reserves policy |
In y/e 31/5/2023, the directors established a policy whereby the unrestricted funds held by the charity should be at least three months of general expenditure and the new Board saw no reason to change this. |
Going concern |
The change of direction arising from the commercial de-rating of the café involved slashing utility costs to an absolute minimum in the first instance. This was partly achieved after negotiation with Business Stream, their charitable exemption scheme allowing a refund of over £2,000 and a monthly saving of around £330. An additional saving of around £117 per month came from Highland Council's waste collection charges being reduced. |
FUTURE PLANS |
The main item of expenditure continues to be the SSE electricity charges. The Trust was stuck on a 2-year contract at 58p per unit and Standing & Capacity (S&C) Charges of around £600 per month until 31/8/24. A new contract after that time will have to see unit charges reduced and S&C Charges minimised. Also applications are being pursued for funding for an array of ground-mounted solar panels to help reduce power costs. |
Occasional hires provide useful income and bookings can be done online and will be shown on the calendar (https://www.embotrust.co.uk). We hope it will also raise the profile of the Trust's various activities. |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Governing document |
The governing documents of The Embo Trust (Urras Euraboil) are the Memorandum and Articles of Association of the company, incorporated on 3 September 2007. The company obtained charitable status on 29 March 2010. |
The company is limited by guarantee of £1 per member and has no share capital. Permission has been granted from the Register of Companies to omit the word 'limited' from the company's name. |
Recruitment and appointment of new trustees |
Articles of Association numbers 31.0 - 40.7 deal with all stages from appointment to retiral of directors and allows for retirement to bring fresh blood to the board. The Board continues to have regular monthly meetings with zoom being used as necessary when physical meetings were not possible. |
REFERENCE AND ADMINISTRATIVE DETAILS |
Registered Company number |
The Embo Trust (Urras Euraboil) (Registered number: SC330264) |
Report of the Trustees |
for the Year Ended 31 May 2024 |
Registered Charity number |
Registered office |
Trustees |
Company Secretary |
Independent Examiner |
Mackay & Co |
Chartered Accountants |
Unit 8 |
Golspie Business Park |
Golspie |
Sutherland |
KW10 6UB |
Approved by order of the board of trustees on |
Independent Examiner's Report to the Trustees of |
The Embo Trust (Urras Euraboil) |
I report on the accounts for the year ended 31 May 2024 set out on pages six to sixteen. |
Respective responsibilities of trustees and examiner |
The charity's trustees are responsible for the preparation of the accounts in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). The charity's trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the Accounts Regulations does not apply. It is my responsibility to examine the accounts as required under Section 44(1)(c) of the Act and to state whether particular matters have come to my attention. |
Basis of the independent examiner's report |
My examination was carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations 2006. 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 seeking explanations from you as 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 : |
(1) | which gives me reasonable cause to believe that, in any material respect, the requirements |
- | 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 accounts which accord with the accounting records and to comply with Regulation 8 of the 2006 Accounts Regulations |
have not been met; or |
(2) | to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. |
Marcus MacIver CA |
The Institute of Chartered Accountants of Scotland |
Mackay & Co |
Chartered Accountants |
Unit 8 |
Golspie Business Park |
Golspie |
Sutherland |
KW10 6UB |
Date: ............................................. |
The Embo Trust (Urras Euraboil) |
Statement of Financial Activities |
for the Year Ended 31 May 2024 |
31.5.24 | 31.5.23 |
Unrestricted | Restricted | Total | Total |
fund | funds | funds | funds |
Notes | £ | £ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies | 2 |
Charitable activities | 5 |
Other trading activities | 3 |
Investment income | 4 |
Total |
EXPENDITURE ON |
Raising funds | 6 |
Charitable activities | 7 |
Other |
Total |
NET INCOME/(EXPENDITURE) | ( |
) | ( |
) | ( |
) |
Transfers between funds | 16 | (5,586 | ) | 5,586 | - | - |
Net movement in funds | ( |
) | ( |
) | ( |
) |
RECONCILIATION OF FUNDS |
Total funds brought forward |
TOTAL FUNDS CARRIED FORWARD | 1,139,474 |
The Embo Trust (Urras Euraboil) (Registered number: SC330264) |
Balance Sheet |
31 May 2024 |
31.5.24 | 31.5.23 |
Unrestricted | Restricted | Total | Total |
fund | funds | funds | funds |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 | ( |
) | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
NET ASSETS |
FUNDS | 16 |
Unrestricted funds | 33,620 |
Restricted funds | 1,105,854 |
TOTAL FUNDS | 1,139,474 |
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 May 2024. |
The members have not required the company to obtain an audit of its financial statements for the year ended 31 May 2024 in accordance with Section 476 of the Companies Act 2006. |
The Embo Trust (Urras Euraboil) (Registered number: SC330264) |
Balance Sheet - continued |
31 May 2024 |
The trustees acknowledge their responsibilities for |
(a) | ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company. |
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. |
The financial statements were approved by the Board of Trustees and authorised for issue on |
The Embo Trust (Urras Euraboil) |
Notes to the Financial Statements |
for the Year Ended 31 May 2024 |
1. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements of the charitable company, which is a public benefit entity under FRS 102, 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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value. |
Financial reporting standard 102 - reduced disclosure exemptions |
The charitable company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland': |
• | the requirements of Section 7 Statement of Cash Flows. |
Income |
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. |
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 a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Freehold property | - |
Plant and machinery | - |
Taxation |
The charity is exempt from corporation tax on its charitable activities. |
Fund accounting |
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. |
The Embo Trust (Urras Euraboil) |
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2024 |
1. | ACCOUNTING POLICIES - continued |
Fund accounting |
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. |
2. | DONATIONS AND LEGACIES |
31.5.24 | 31.5.23 |
£ | £ |
Donations |
3. | OTHER TRADING ACTIVITIES |
31.5.24 | 31.5.23 |
£ | £ |
Fundraising events |
4. | INVESTMENT INCOME |
31.5.24 | 31.5.23 |
£ | £ |
Rents received |
Reimbursed utilities | - | 3,550 |
5. | INCOME FROM CHARITABLE ACTIVITIES |
31.5.24 | 31.5.23 |
Activity | £ | £ |
Other income | Community Centre | 75 | 1,229 |
Grants | Community Centre | 27,340 | 500 |
Grants | Warm Hub Project | - | 5,625 |
Grants received, included in the above, are as follows: |
31.5.24 | 31.5.23 |
£ | £ |
Awards for All | - | 5,625 |
Highland Council | 1,600 | 500 |
Beinn Tharsuinn | 3,140 | - |
Big Lottery | 19,600 | - |
Sutherland drug and alcohol forum | 1,000 | - |
Carried forward | 25,340 | 6,125 |
The Embo Trust (Urras Euraboil) |
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2024 |
5. | INCOME FROM CHARITABLE ACTIVITIES - continued |
31.5.24 | 31.5.23 |
£ | £ |
Brought forward | 25,340 | 6,125 |
North Highland Initiative | 2,000 | - |
27,340 | 6,125 |
6. | RAISING FUNDS |
Raising donations and legacies |
31.5.24 | 31.5.23 |
£ | £ |
Fundraising costs |
7. | CHARITABLE ACTIVITIES COSTS |
Support |
Direct | costs (see |
Costs | note 8) | Totals |
£ | £ | £ |
Community Centre | 28,755 | 2,559 | 31,314 |
8. | SUPPORT COSTS |
Governance |
Finance | Other | costs | Totals |
£ | £ | £ | £ |
Community Centre | (470 | ) | 1,306 | 1,723 | 2,559 |
9. | NET INCOME/(EXPENDITURE) |
Net income/(expenditure) is stated after charging/(crediting): |
31.5.24 | 31.5.23 |
£ | £ |
Depreciation - owned assets |
Surplus on disposal of fixed assets | ( |
) | ( |
) |
The Embo Trust (Urras Euraboil) |
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2024 |
10. | TRUSTEES' REMUNERATION AND BENEFITS |
There were no trustees' remuneration or other benefits for the year ended 31 May 2024 nor for the year ended 31 May 2023. |
Trustees' expenses |
There were no trustees' expenses paid for the year ended 31 May 2024 nor for the year ended 31 May 2023. |
11. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES |
Unrestricted | Restricted | Total |
fund | funds | funds |
£ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies |
Charitable activities |
Investment income |
Total |
EXPENDITURE ON |
Charitable activities |
Other |
Total |
NET INCOME/(EXPENDITURE) | ( |
) | ( |
) | ( |
) |
RECONCILIATION OF FUNDS |
Total funds brought forward | 54,616 | 1,132,561 |
TOTAL FUNDS CARRIED FORWARD | 33,620 | 1,105,854 | 1,139,474 |
The Embo Trust (Urras Euraboil) |
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2024 |
12. | TANGIBLE FIXED ASSETS |
Freehold | Plant and |
property | machinery | Totals |
£ | £ | £ |
COST |
At 1 June 2023 |
Additions |
At 31 May 2024 |
DEPRECIATION |
At 1 June 2023 |
Property depreciation |
At 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
At 31 May 2023 |
13. | FIXED ASSET INVESTMENTS |
There were no investment assets outside the UK. |
During the year it was decided to wind up the subsidiary company, Embo Trading Limited, as it was no longer trading. The company had previously operated the community shop, but it was decided to cease this activity due to rising costs. The company was dissolved on 2 July 2024. |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.5.24 | 31.5.23 |
£ | £ |
Amounts owed by group undertakings |
The Embo Trust (Urras Euraboil) |
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2024 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.5.24 | 31.5.23 |
£ | £ |
Accrued expenses |
16. | MOVEMENT IN FUNDS |
Net | Transfers |
movement | between | At |
At 1.6.23 | in funds | funds | 31.5.24 |
£ | £ | £ | £ |
Unrestricted funds |
General fund | 33,620 | 14,167 | (5,586 | ) | 42,201 |
Restricted funds |
Fourpenny Plantation | 25,000 | - | - | 25,000 |
Community Centre project | 1,078,601 | (27,840 | ) | - | 1,050,761 |
Warm Hub Project | 2,253 | (2,539 | ) | 286 | - |
Legal fees | - | (200 | ) | 200 | - |
Heating improvements | - | (5,100 | ) | 5,100 | - |
(35,679 | ) |
TOTAL FUNDS | (21,512 | ) | 1,117,962 |
Net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 38,451 | (24,284 | ) | 14,167 |
Restricted funds |
Community Centre project | - | (27,840 | ) | (27,840 | ) |
Warm Hub Project | - | (2,539 | ) | (2,539 | ) |
Legal fees | 640 | (840 | ) | (200 | ) |
Heating improvements | 4,500 | (9,600 | ) | (5,100 | ) |
( |
) | (35,679 | ) |
TOTAL FUNDS | ( |
) | (21,512 | ) |
The Embo Trust (Urras Euraboil) |
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2024 |
16. | MOVEMENT IN FUNDS - continued |
Comparatives for movement in funds |
Net |
movement | At |
At 1.6.22 | in funds | 31.5.23 |
£ | £ | £ |
Unrestricted funds |
General fund | 54,616 | (20,996 | ) | 33,620 |
Restricted funds |
Fourpenny Plantation | 25,000 | - | 25,000 |
Community Centre project | 1,107,561 | (28,960 | ) | 1,078,601 |
Warm Hub Project | - | 2,253 | 2,253 |
1,132,561 | (26,707 | ) | 1,105,854 |
TOTAL FUNDS | 1,187,177 | (47,703 | ) | 1,139,474 |
Comparative net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 11,448 | (32,444 | ) | (20,996 | ) |
Restricted funds |
Community Centre project | - | (28,960 | ) | (28,960 | ) |
Warm Hub Project | 5,625 | (3,372 | ) | 2,253 |
5,625 | (32,332 | ) | (26,707 | ) |
TOTAL FUNDS | 17,073 | (64,776 | ) | (47,703 | ) |
The Fourpenny Plantation Fund represents the value of the charity's assets made up by the land at the Fourpenny Plantation. |
The Embo Trust (Urras Euraboil) |
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2024 |
17. | CONTINGENT LIABILITIES |
The Trust has granted a standard security over the community centre to the The Big Lottery Fund up to the level of the grant received against breach of grant conditions within a specified time period. The level of grant was £758,322. |
18. | RELATED PARTY DISCLOSURES |
The balance due to be received from the trading subsidiary, Embo Trading Ltd, at the year end was £0 (2023 - £7,540). A decision was taken to wind up the subsidiary company as it was no longer trading. The company was wound up on 2 July 2024. |