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 Trust'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 Trust's objects are set out in the Memorandum and Articles of Association and are to seek the advancement of education of young people originating from Argyll and Bute, who are in full-time further education and are living away from their parental home by the provision of bursaries and other support. In providing such bursaries and support, the trust will:
1. prioritise the available support to young people from the primary areas adjacent to the Allt Dearg Community Wind Farm as first priority, then young people from the secondary areas as second priority, thereafter the scheme is open to all young people in Argyll and Bute;
2. take account of the family and economic circumstances of the young people, and shall prioritise support to those young people, for whom the provision of such support would be a material factor in overcoming a reluctance or financial inability to pursue tertiary education;
3. take account of the nature of the tertiary education being pursued by the young person, and shall prioritise support for those studying courses of noted academic and vocational value;
4. take account of the character and educational potential of the young people, and shall prioritise support to those young people who are most likely to achieve and benefit from such educational opportunity; and
5. satisfy itself on an annual basis, that the support provided is being properly employed to support the Trust objectives.
The Directors have paid due regard to guidance issued by OSCR in deciding what activities the Trust should undertake.
During the year the Trust received donations from the partners of the Allt Dearg Community Wind Farm totalling £42,035 and Sondoire Community Wind Farm totalling £23,645. Gift Aid is also recoverable on some of these donations.
2023-24 was our eleventh year of operation. Allt Dearg Educational Trust has now supported 228 individual young people, and has paid 538 annual grants totalling over £550,000. Thank you to Allt Dearg Community Windfarm and Srondoire Community Windfarm, who provide 100% of the funds via annual donations. During 2023-24 we received a one-off donaton of £20,000 from SSEN.
In our eleventh year we received 28 applications. Of these we awarded grants to 24 young people totalling £19,080 and we expect to support them throughout their course. We also had continuing awards to 37 young people amounting to £41,870.
Priority is given to applications from young people whose homes are adjacent to the windfarms.
It is the policy of Trust that funds should be maintained at a level to meet the short-term anticipated expenditure needs with the contingent commitments being met out of anticipated future donations from the Allt Dearg and Srondoire wind farms.
The Trust ensures that all funding to further the aims of the Trust contains an element of funding to contribute towards Trust expenses.
The Trust is registered for Gift Aid from subscriptions and donations.
The Directors have assessed the major risks to which Trust is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The Trustees, who are also the directors for the purpose of company law, and who served during the year were:
Membership is open to any individual who is interested in promoting the objects of the company. Any person who wishes to become a member must sign, and lodge with the company, a written application for membership. The Trustees shall consider each application for membership at the first Trustees' meeting which is held after receipt of the application; the Trustees shall, within a reasonable time after the meeting, notify the applicant of their decision on the application. The Trustees may, at their discretion, refuse to admit any person to membership.
The Trust's Equal Opportunities policy is implicit in this process.
At each annual general meeting, the members may elect any member (providing he/she is willing to act) to be a Trustee. Trustees shall retire by rotation but may be eligible for re-election. As per the Articles of Association of the Trust the minimum number of Trustees shall be 3 and there is no maximum. A Trustee must be a member.
None of the Trustees/Directors has any beneficial interest in the company. All of the directors are members of the company and guarantee to contribute £1 in the event of a winding up.
There were no transactions with related parties during the year.
The Directors' report was approved by the Board of Directors.
I report on the accounts for the year ended 31 July 2024 set out on pages 4 to 10.
The directors, who also act as trustees for the Charitable Trust, 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. The Directors consider that the audit requirement of Regulation 10 (1) (a) to (c) of the Accounts Regulations does not apply.
In connection with my examination, no matter has come to my attention:
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.
Allt Dearg Educational Trust is a private company limited by guarantee incorporated in Scotland. The registered office is The Old Surgery, School Road, Tarbert, Argyll, PA29 6UL.
The financial statements have been prepared in accordance with the Trust'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 Trust is a Public Benefit Entity as defined by FRS 102.
The Trust has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the Trust. 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 Directors have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future. Thus the Directors 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 Directors 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 Trust 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.
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 Trust 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 Trust's balance sheet when the Trust 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, 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.
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.
Financial liabilities are derecognised when the Trust’s contractual obligations expire or are discharged or cancelled.
In the application of the Trust’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.
Donations received
Educational grants, of varying amounts, were paid to 67 (2023 - 70) individuals in the year.
The average monthly number of employees including directors during the year was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
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.
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.
In addition to the grants accrued in Note 5, the Trustees have authorised certain grants (conditional awards) which are subject to recipients fulfilling certain conditions. These conditional grant awards are:
| 2024 £ | 2023 £ |
Payment possible, due within one year | 80,040 | 66,780 |
Payment possible, due in more than one year | 117,160 | 88,860 |
Total contingent liabilities | 197,200 | 152,640 |
There were no disclosable related party transactions during the year (2023 - none).