Over the past 12 months, the Inverness Caledonian Thistle Community Development Trust has gone from strength to strength in delivering a wide range of community activities, including holiday camps for young boys and girls; school education programmes, Para Football, Walking Football and Football Memories meetings. The most notable projects we are undertaking are the creation of a new community hub at the Playing Fields of Inverness Royal Academy and the SFA-sponsored Extra Time Project at four Inverness primary schools, providing breakfast and after school clubs. We have a strong board of 8 directors, who have experience across a wide range of business and sporting activity and we meet quarterly to manage the business of the Trust. We are supported by a Community Development Manager, whose team consists of an Assistant Manager, Business Support officer as well as a team of delivery staff.
The Trust has a 25-year lease from The Highland Council of 10 acres of grassland at Inverness Royal Academy Playing Fields and our plan is to bring the land back into active use for our community through draining the flood-prone land and building a pavilion and changing rooms on the site. Phase 1 is well underway, with extensive drainage work being carried out by landscape consultants, Greentech. We are now piecing together a funding package for the second phase of work which will see the construction of a pavilion, with office and meeting space and changing rooms. It is our intention for the Community Development Team to be based there.
We are indebted to those organisations who are helping fund the £1 million-plus project, including the Scottish Football Association facilities fund, Sportscotland, Highlands and Islands Enterprise, The Highland Council Regeneration fund and a private donor. Private sponsorship is actively being sought to complete the funding package. We envisage the facility, which will be managed by the Trust, being widely used once it comes into operation.
Extra time project
We successfully managed to get an extension of funding for the Extra Time Project at the start of the new financial year for a further 12 months building on the success of the initial 6 month trial October 23-March 24, which sees the Community Development Team provide breakfast clubs and after school clubs at Bishop Eden’s Primary, Dalneigh Primary, Merkinch Primary and Bun-Sgoil Ghàidhlig Inbhir Nis. The project is proving a big success, with significant benefits to pupils and their families through a more structured start and end to their school day and healthier eating. The schools are benefiting through better timekeeping of pupils and attendance. The trustees are full of praise for the team in providing such a vital community service, recognising that the total funding for the project, funded by the SFA at £250,000 for the new financial year.
Holiday camps:
The Community Development Team, which now extends to 15 staff, run holiday camps in the October, Easter and Summer holidays as well as half terms across multiple venues including Alness, Tain, Thurso, Portree, Ullapool, Fort William, Aviemore, Nairn & Inverness. These are proving increasingly popular with 1774 in attendance across the Summer 7-week programme where some ICTFC footballers popped in to meet the participants.
Para Football
Our coaches are working hard to develop Para Football in all ages groups with festivals and training locally providing respite care for carers. Additionally we are back playing competitively at a national level.
ICT Football memories
We are attracting regular attendances of 50-plus at our monthly meetings, when we invite speakers along to share their football memories. The Football Memories website at ambaile now features more than 300 photographs and stories and we have published a book, entitled Inverness Football Remembered. The final phase of the project is to create a display of memorabilia. These meetings complement the weekly walking football sessions organised by the Community Development Team, which attract more than 20 veteran footballers each week.
Festive Friends
A popular event run by the Community Development Team is the annual Festive Friends lunches with 167 meals served, held at the Caledonian Stadium and attended by the management and players of ICT. A further 60 unable to attend the lunches received a delivery of a festive hampers from the Community Development team.
The Trustees present their annual report and financial statements for the year ended 30 September 2024. The trustees' report also complies with the requirements of a directors' report under the Companies Act 2006.
The financial statements have been prepared in accordance with the accounting policies set out in note 11 to the financial statements and comply with the Charitable company's Memorandum and Articles of Association, the Companies Act 2006, 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 charitable objectives are:
the promotion of community participation in healthy recreation for the benefits of the inhabitants of Inverness and surrounding communities by the provision of facilities for playing football; and
to promote the benefits of the inhabitants of Inverness and its environs without distinction of sex, sexuality, political, religious or other opinions by associating the local statutory authorities, voluntary organisations and inhabitants in a common effort to advance education and to provide facilities, or to assist in the provision of facilities, in the interest of social welfare for recreation and other leisure-time occupation so that their conditions of life may be improved.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charitable company should undertake.
During the year the charity benefitted from car parking income, open days, raffles and donations from local individuals and businesses, giving rise to an income of £43,357(2023 - £38,669). In addition the charity also received grant funding of £651,676 (2023 - £146,508). The charitable company made contributions of £Nil (2023 - £17,500) towards the Youth & Community Development Programmes organised throughout the Highlands by Inverness Thistle and Caledonian FC Ltd.
The statement of financial activities on page 5 shows the result for the year. An overall net surplus of £467,794 (2023 - £101,615) arose; leaving total charitable funds of £638,886 at the year end (2023 - £171,092). The charity operates a general reserve representing unrestricted funds arising from past operating results, and is maintained at a level to cover at least six months running costs, amounting to approximately £86,773.
The trustees have assessed the major risks to which the charitable company is exposed and are satisfied that systems are in place to mitigate these risks and all guidance is being followed. The charitable company has access to sufficient working capital to allow it to meet its liabilities as they fall due for at least the next 12 months and therefore is considered to be a going concern.
It is the policy of the Charitable company that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to six month’s expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Charitable company’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The Charitable company is a company limited by guarantee. It is recognised as a Scottish Charity by OSCR and governed by its Memorandum and Articles of Association. It is administered by a Board of Directors who meet regularly. The directors are chosen and appointed by the Board for their suitable knowledge and background.
The company is limited by guarantee and as such does not have share capital. 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:
None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The Trustees, who are also the directors of Inverness Caledonian Thistle Community Development 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 Charitable company 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 Charitable company 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 Charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. They are also responsible for safeguarding the assets of the Charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In accordance with the company's articles, a resolution proposing that MacKenzie Kerr Limited be reappointed as auditor of the company will be put at a General Meeting.
The Trustees' report was approved by the Board of Trustees.
Opinion
We have audited the financial statements of Inverness Caledonian Thistle Community Development (the ‘Charitable company’) for the year ended 30 September 2024 which comprise the statement of financial activities, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and the provisions available for small entities, in the circumstances set out in note 24 to the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the Trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and
the directors' report included within the Trustees' report has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the Trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:
proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' report and from the requirement to prepare a strategic report.
As explained more fully in the statement of Trustees' responsibilities, the Trustees, who are also the directors of the Charitable company for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the Charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the charity's financial statements to material misstatement and how fraud might occur, including through discussions with the trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the charity by discussions with trustees and updating our understanding of the sector in which the charity operates.
Laws and regulations of direct significance in the context of the charity include the Charities and Trustees Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 and UK Tax legislation.
Audit response to risks identified:
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the charity's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the charity's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the Responsible Individual (RI) drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the RI's review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company’s trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company, the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Inverness Caledonian Thistle Community Development is a private company limited by guarantee incorporated in Scotland. The registered office is Caledonian Stadium, Stadium Road, Inverness, IV1 1FF.
The financial statements have been prepared in accordance with the Charitable company's Memorandum and Articles of Association, the Companies Act 2006, 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 Charitable company is a Public Benefit Entity as defined by FRS 102.
The Charitable company has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the Charitable company. 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.
Whilst the level of ongoing activity relies on certain factors that remain uncertain, the trustees are satisfied that the charity has access to sufficient working capital to allow it to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements. Accordingly the financial statements are prepared on a going concern basis.
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 Charitable company 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.
Income from trading activities is measured at the fair value of the consideration received or receivable and represents amounts receivable for services provided.
Football coaching income is recognised when receivable and on delivery of the service.
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.
Depreciation on the leasehold improvements will begin once the construction work is complete.
At each reporting end date, the Charitable company 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 Charitable company 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 Charitable company's balance sheet when the Charitable company 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 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 Charitable company’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 Charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to net income/(expenditure) for the year so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Grants receivable
Football coaching income
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Charitable company during the year.
The average monthly number of employees during the year was:
The remuneration of key management personnel was as follows:
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
The hire purchase and finance leases are secured over the assets to which they relate.
Deferred income is included in the financial statements as follows:
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.
Scottish Football Association Extra Time Programme:
Grant funding towards costs in relation to providing before and after school and holiday clubs.
Highland Council:
Grant funding towards staffing costs.
Community Hub:
Grant funding towards the building of a community hub.
Cycling Scotland:
Grant funding towards a bike shelter.
Coaching Funds:
Grant funding towards coaching and summer camps.
Shared Care Scotland:
Grant funding towards para football.
Transfers between funds:
A transfer of £59,491 is shown coming from general funds, this represents the charities own contribution towards the community hub project.
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.
There are contingent liabilities relating to grants received for the community hub project whereby if the terms and conditions of the grants are not adhered to a proportion of the grants may become repayable. It is not considered practical to quantify any liability which might arise.
At the reporting end date the Charitable company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The company made a grant payment totalling £Nil (2023 - £17,500) to Inverness Thistle and Caledonian F.C. Limited, a company in which the directors J Morrison and G Fyfe were directors during the year.
In common with many businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.