Report of the directors (incorporating the trustees’ report) for the year ended 31 December 2024
The directors present their report and the financial statements for the year ended 31 December 2024. The directors, who are also trustees of Development Coll for the purposes of charity law and who served during the year and up to the date of this report are set out on page 1.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity’s trust deed, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Companies Act 2006 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 published on 16 July 2014.
Introduction to Development Coll
“Promoting the sustainable development of the Isle of Coll for the benefit of residents, visitors, groups and businesses.”
Development Coll is a community company limited by guarantee with charitable status. As a development trust, the organisation is underpinned by the ethos of self-help and self-reliance and a belief that community regeneration which is achieved through community owned enterprise and assets is the way to build strong and sustainable communities.
Objectives and activities
Objects of the Charity
The charity was formed:
• To manage community land and assets as part of the protection and sustainable development of the natural environment
• To promote rural regeneration in areas of social and economic deprivation within the Community
• To advance the education of the Community about its environment, culture and/or history
• To promote, operate and/or support other similar charitable projects for the benefit of the Community
Since its formation, Development Coll (DC) has been involved in a wide variety of activities in keeping with its objectives. The activities are managed by various working groups and individuals acting in a voluntary capacity (except for An Cridhe and Coll Bunkhouse which are staffed) and the Board oversee all these activities. The wide scope of the objectives of DC allows for an extensive range of projects to be considered by the Board, but the ability to successfully undertake a project is dependent on both the willingness and expertise of volunteers both on the Board and in the wider community.
Activities during the year
The main ongoing projects are the mobile mast, and the day to day running of An Cridhe and Coll Bunkhouse. There are pitches available to be booked for motorhomes and e-bike hire is also on offer.
Achievements & performance
The activities of Development Coll have generated a £74,914 deficit in the year (2023: £35,811 deficit). As at 31 December 2024, net assets were £1,995,488 (2023: £2,070,404).
An Cridhe
An Cridhe hosted a number of events over the year including the inaugural Doddie Disco, the annual Coll Show, Coll Half Marathon, Coll and the Cosmos and Music Coll.
Motorhome and e-bike income increased in 2024.
Coll Bunkhouse
Bunkhouse income has increased in 2024 as ferry cancellations had less impact than in 2023 and there were more bookings taken out of peak season.
Review of Funds
DC holds both unrestricted and restricted funds. Unrestricted funds are spent or applied at the discretion of the trustees to further any of the charity’s purposes and may be used to supplement expenditure made from restricted funds. Restricted funds arise when the donor making the gift stipulates the purpose for which the funds may be used. Further detail on the movement on the funds during the reporting period can be found in the notes to the accounts.
Five of the restricted funds – An Cridhe & Bunkhouse, Mobile Phone Mast, Gym & Equipment, Coll Half Marathon, Computer/AV equipment - have been reduced by the amount of depreciation charged during the reporting period. Depreciation accounts for the cost of general wear and tear to these assets during the reporting period and requires that cost to be reflected in the revenue expenditure of the organisation so that the expenditure of the organisation reflects the ‘Total Cost’ of the operations.
Other restricted funds with a balance as at 1 January 2024, are:
Mobile Phone Mast Maintenance – there was no spend against this fund in the year.
Sports Fund (Revenue) – remainder of fund is available to be spent on sporting equipment.
Adapt & Thrive – this remainder of this fund is to be spent on future adaptations to Coll Bunkhouse or An Cridhe.
Awards4All – a small sum continues to be carried forward from this grant awarded in a prior year, with the intent of supporting a cultural event.
Repairs & maintenance – fund was created to pay for major maintenance which is expected to increase in upcoming years as the facilities age.
Reserves policy and going concern
Where the Trustees are able to do so, they seek to retain an unrestricted reserve of approximately six months operational costs to ensure stability. This was estimated at £55,296 with reference to the 2025 budget. Reserves are needed to bridge the gap between the spending and receiving of income (cashflow) and to cover unplanned emergency repairs and other expenditure.
As at 31 December 2024, the unrestricted reserve balance was £73,501.
Future Financial Planning
The draft budget for 2025 estimates an operational surplus of £2,497 prior to depreciation. Close monitoring of the finances on a monthly basis will enable the Board to respond to cost challenges as they arise.
Principal risks and uncertainties
Development Coll faces certain risks and uncertainties and takes steps to mitigate against these where possible:
Business Interruption – a temporary cessation in trading due to an unforeseen event (e.g. a fire) would result in loss of income over a period where committed costs remain. In order to mitigate this risk, DC carries out regular health and safety checks and has maintenance contracts for essential equipment such as fire alarms. DC also maintains business interruption insurance, and a reserve that would allow it to meet committed costs over the short term. In addition, with five sources of income (An Cridhe, Coll Bunkhouse, motorhomes, mobile mast and ebikes) it is unlikely that more than one service would be interrupted at any given time.
Changing demographics - the changing demographic and variable population of the island will impact on An Cridhe, although the multi-purpose capabilities of the facility help ensure a variety of services can be catered for, and it is difficult to assess more accurately the impact these changes could have.
Economic impact on tourism - Coll Bunkhouse is dependent on tourism to the island. While it continues to be difficult to attract visitors out with peak holiday times, the majority of visitors to the Bunkhouse are UK residents, and the Bunkhouse’ targeted marketing is restricted to Scottish or UK organisations and publications. Political uncertainty across the globe may have a negative impact, but any impact should be lessened by the predominantly UK-based customer base.
Customer Dependence - An Cridhe is dependent largely on the local community for its customers and there is a limit to the number of big anniversaries or local events a community of this size can bring to An Cridhe. The Board continue to work with the staff and Management Committee to increase utilisation of the facility where possible but, more importantly, the focus is on increasing the net income from the activities that support the running of An Cridhe, such as Coll Bunkhouse, motorhomes, ebikes and the mobile mast.
Competition – Coll Bunkhouse is a relatively unique business in its locality, but there is some competition. DC will work to ensure retention of existing customers and to differentiate the product from that of other local providers.
General comments on financial outturn.
Under the Statement of Recommended Practice (SORP) for charity accounts, income is reported in the year it is received whilst expenditure may be reported in future years. As a result, funds may be carried forward to future years and expenditure in those years made out of those funds may exceed the income for the year.
The main source of income is from Coll Bunkhouse. Grants may be sought to support specific projects
In 2024 we were very fortunate to have support from:
• Business Energy Scotland – heat pump replacement funding
Overall structure of the charity
Development Coll is a company limited by guarantee, governed by its Memorandum and Articles of Association. The company is registered in Scotland, company number SC300498. It is a registered charity with the Office of the Scottish Charity Regulator (OSCR).
Full Membership is open to any person over the age of 18 who:
• Is ordinarily resident on the Isle of Coll;
• Is entitled to vote at a local government election in a polling district that includes the Isle of Coll; and
• Supports the aims and activities of the company
Each Full Member has one vote. Membership will be granted at the discretion of the Board and will only be refused if there is good cause or reason to do so. No paid employee of the Company may become a member.
For others who are not eligible for Full Membership and who wish to support the aims and activities of the company, Associate Membership is open to any individual aged 18 years or over, and Junior Membership is open to any individual aged between 12 and 17 years. No voting rights are conferred.
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:
Recruitment and Appointment of Trustees
Anyone who wishes to be a Trustee and who meets the criteria may make their request in writing to the company. Trustees must usually be a Full member of Development Coll and be appointed by the Directors. Co-Opted Directors need not be a full member and are instead appointed by the Directors for their special skills and experience.
The maximum number of directors is 12, of whom no more than 7 may be Elected Directors and no more than 5 may be Co-opted Directors. Of the 5 Co-opted Directors no more than 3 may be drawn from the Associate Membership
Trustee Induction and Training
Board members have access to ‘Guidance and Good Practice for Charity Trustees’, a publication produced by OSCR in June 2016. This is circulated to all trustees annually as a refresher, and also provided to any new, or potential, trustees in the future, to ensure they have the information they require to carry out the responsibilities of a trustee to the best of their ability. It is acknowledged that a key driver behind the improved guidance being provided by OSCR is helping trustees to better understand how to identify and respond to a conflict of interest. Coll is a very small community where residents often have more than one voluntary or employment role within the community, and the Board acknowledge the risk of conflicts of interest arising. It is hoped that provision of this guidance will reassure and support trustees in their responsibilities.
Key Management Personnel & Staffing
The Key Management Personnel of the charity comprise the Board of Directors who are in day-to-day control of the decision making in the charity. Management of the day-to-day operations is delegated to the Manager of An Cridhe and Coll Bunkhouse who operates within the financial budget and other parameters set out by the Board and any significant decisions are made by the Board.
Development Coll employed a manager supported by three part-time staff with staff hours split across An Cridhe and Coll Bunkhouse throughout the year.
Remuneration and Connected Persons
Remuneration for staff is set by directors. A workplace pension scheme is available to staff who meet the criteria for enrolment.
Directors do not receive any remuneration in relation to services provided as a charity trustee. This treatment is consistent with that of other local residents.
One trustee has a family member who receives payment from Development Coll by way of a peppercorn rent for land rental and a ‘share of income’ agreement in relation to the mobile phone mast.
The Trustees report was approved by the Board of Trustees.
I report on the financial statements of the Charity for the year ended 31 December 2024, which are set out on pages 8 to 21.
It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and to state whether particular matters have come to my attention.
My examination is 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 financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the financial statements.
In the course of 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 Charities and Trustee Investment (Scotland) Act 2005 and Regulation 4 of the Charities Accounts (Scotland) Regulations 2006, and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the Charities Accounts (Scotland) Regulations 2006
have not been met, or
2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
Jean Ainsley CA
Ainsley Smith & Co Ltd
Chartered Accountants
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Development Coll is a private company limited by guarantee incorporated in Scotland. The registered office is An Cridhe, Arinagour, Isle Of Coll, PA78 6SY, Scotland.
The financial statements have been prepared in accordance with the Charity's governing document, the Companies Act 2006 the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 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)". The Charity is a Public Benefit Entity as defined by FRS 102.
The Charity 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 Charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
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).
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
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 company 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 companyCharity's balance sheet when the company 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, 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 company Charity’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
The average monthly number of employees during the year was:
The charity is a charitable company within the meaning of the Finance Act 2010. Accordingly the charity's activities mainly fall within the exemptions from taxation in respect of income or capital gains afforded by the provisions of the Corporation Taxes Act 2010 and the Taxation of Chargeable Gains Act 1992 to the extent that such income or gains are applied for charitable purposes. However the charity operates the Coll Bunkhouse which represents a source of trading income, and where this does not fall within the available exemptions, profits from this source are subject to tax.
The Big Lottery Fund has a standard security dated 11th December 2010 over ground on the Island of Coll in respect of all sums due or to become due in the future.
Included in the An Cridhe costs is an amount of £211,600 in respect of the purchase of land which will not be depreciated. Depreciation has been charged on buildings since 2015 following completion of constructions.
Included in the Mobile Phone Mast cost is an amount of £15,550 in respect of professional fees relating to the long term lease of land for the mast.
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.
Purposes of Restricted Funds:
An Cridhe
The main fund represent the building and costs of An Cridhe and the Bunkhouse.
Gym & Treadmill Equipment (Asset)
Fundraising was carried out in 2014 to purchase gym equipment. The remaining balance is carried forward and utilised where new equipment is required.
Coll Half Marathon
This fund represents the costs of indoor bowling equipment, funded by Coll Half Marathon, capitalised in the balance sheet less depreciation charged directly to the fund.
Gym & Treadmill Equipment
Fundraising was carried out in 2014 towards the costs of purchasing a treadmill and other equipment for the gym. Equipment totalling £4,207 was purchased, a balance of £2136 was carried forward in a revenue fund.
Mobile Phone Mast Maintenance
This is a small restricted fund brought forward for mast maintenance.
Sports Fund
This is a restricted fund for equipment and is used to replace existing sports equipment.
Adapt & Thrive
This is a third sector government grant to help Coll Bunkhouse adapt to Covid Restrictions and also to help An Cridhe move towards a cash-free operation.
Repairs & Maintenance Reserve
This is a restricted fund used for preventative maintenance work required to An Cridhe and Coll Bunkhouse property.
Near Me Computer and AV Equipment
This fund represents the costs of computer and AV equipment, funded by Argyll & Bute Council, for the purpose of enabling Near Me medical appointments, capitalised in the balance sheet less depreciation charged directly to the fund.
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 were no disclosable related party transactions during the year (2023 - none).