The Trustees present their annual report and financial statements for the year ended 28 February 2025.
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:
To provide, or organise, recreational facilities with the object of improving the conditions of life for the public at large within the community;
To advance the arts, heritage and culture, education, health and social care;
To relieve those in need by reason of age, ill health, disability, financial hardship or other disadvantage, particularly through supporting projects working towards these aims within the Community;
To advance environmental protection or improvement;
To advance citizenship and/or community development within the Community, and
To promote, establish, operate and/or support other similar schemes which are in furtherance of charitable purposes for the benefit of the Community.
The policies adopted in furtherance of these objects are;
Working with other organisations within the Community;
Producing a Community Development Plan;
Sourcing funds in order to carry out projects in said plan, and
Overseeing the realisation of projects.
There has been no change in these during the year.
The Trustees have paid due regard to guidance issued by the Office of the Scottish Charity Regulator in deciding what activities the Trust should undertake.
The major activity undertaken by the Trust in the year was the acquisition of two shop premises on the main street in Tighnabruaich. The principal funding for the purchase was a grant from the Scottish Land Fund, to whom the Trust is extremely grateful for their support. The balance of the funding came from the Trust’s own resources. One of the shop units houses the popular Heritage Centre, operated by volunteers on the Trust’s behalf. The purchase secures these premises for the Centre. The other shop is let to a third party and operates as an outlet for curios and bric a brac. The purchase serves to protect the retail focus of this section of the main street.
Otherwise the Trust continued to support community projects and some self-developed projects throughout the year, as outlined later.
The flow of income to the charity from its investment in Sròndoire Wind Farmers Limited, through its subsidiary company Tighnabruaich District Community Renewables Limited, was sustained at a high level, primarily owing to high underlying electricity prices as a result of Russia’s invasion of Ukraine. The funding used to finance the investment in Sròndoire was fully repaid at the year end.
The flow of community projects requiring support had still not recovered to pre-pandemic levels in number, but included some significant amounts. The Trust continued to support community projects and develop projects in its own right. Grants awarded in the year from the Trust’s own resources amounted to £19,891 (along with expenditure of £4,130 on project support costs that had been met directly by the Trust), which was down on the year before, and ranged in size from £438 to £11,250. Grants included support for the purchase of a new fairway lawnmower for Kyles of Bute Golf Club, assistance with repairs to the roof and wall coverings of the Kames Village Hall, a programme to enhance cycling activity at Tighnabruaich Primary School, an after school club at Otter Ferry and the continuation of grants for supported study for students resident in the hostel at Dunoon Grammar School.
There was little Trust led activity associated with the local paths network, but extensive costs of over £2,600 were incurred to maintain the town jetty and this will continue in 2025. While agreement has been reached with the Crown Estate for a new 20-year lease for the jetty and associated moorings, the lease is in the process of being transferred to the Trust as the newly reformed Community Council does not regard it as falling within its remit.
The Trust continues to maintain the defibrillators in the area which resulted in modest outlays in the year. It has also taken on knotweed eradication in Tighnabruaich and Kames foreshore and spent £785 on this in the year. The Trust continues to run the Kyles 10 Miles event. It is increasingly popular and was successfully run again in early September, generating a surplus towards the Trust’s funds. Arrangements are underway for the 2025 event.
Our part-time development officer continued to deal with much of the routine administration and, more importantly, extend the scope of the Trust's fundraising activities on behalf of the community. His work is invaluable to the successful operation of the Trust as its activities evolve and expand.
The Heritage Centre continues to operate and the displays and presentations continue to be refreshed. The Trust also operates a VETS scheme. VETS stands for Volunteer Emergency Telephone Service and alerts local volunteers to anyone suffering a suspected heart attack. The volunteer can deliver CPR and defibrillation while awaiting the arrival of paramedics by ambulance or helicopter. This important service will be developed further in the coming months.
All projects receiving support are first reviewed by an Investment Committee, separate from the Trust, to ensure they meet the objectives of the Trust, are to be properly managed and are considered to be of benefit to the community. Applications from community groups are actively encouraged.
The Community Plan has been updated to reflect recent achievements and identify new priorities for community support. This was done in conjunction with other established community groups in the area and via a community-wide survey to ascertain whether there are other priorities the Trust should be trying to address.
The charity has achieved an overall operating surplus of £156,744 in the year under review. Underlying funds remain in a positive position with an unrestricted reserve of £187,099 (2024: £77,899) being available to the Trust.
It is the policy of the Trust that unrestricted funds which have not been designated for a specific use should be maintained at a level to enable the Trust to meet expenditure as it falls due which the Trustee's expect to consist of six months of ordinary running costs.
It is the intention of the trustees to continue to accumulate a small reserve of unrestricted funds over the coming year.
The Trustees have assessed the major risks to which the Trust is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The Trust is a company limited by guarantee and governed by its Articles of Association.
The Trust is administered by the board of Trustee's within the terms of its memorandum and articles of association.
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:
Directors are elected by the membership of the Trust.
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' report was approved by the Board of Trustees.
I report on the financial statements of the Trust for the year ended 28 February 2025, which are set out on pages 5 to 22.
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.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Tighnabruaich District Development 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 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 £.
At the time of approving the accounts, the Trustees have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future with regular dividends expected to be received from its investment in Tighnabruaich District Community Renewables Ltd. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the accounts.
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 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 make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is all considered as expenditure on charitable activities and includes the cost of running the Trust as well as grants. Grants payable are charged in the year when the offer is conveyed and a valid expectation created with the recipient that the grant will be paid. Any grants awarded and not claimed are recognised as refunds in the year they are not claimed. All costs are exclusive of VAT where applicable.
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.
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
A subsidiary is an entity controlled by the Trust. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting end date, the Trust 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 Trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ 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 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 Trust’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 Trust is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
In the application of the Trust’s accounting policies, the Trustees 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.
Defibrillator and VETS project
Jetty Project
Kyles 10 miles
Heritage Centre
Pathways
Gaelic festival and projects
External grants awarded
Project support costs
Rent
Insurance
Heat and light
Equipment costs
Development officer costs
Professional and consultants fees
Defibrillator and VETS project
Jetty Project
Kyles 10 miles
Heritage Centre
Pathways
Gaelic festival and projects
External grants awarded
Project support costs
Rent
Insurance
Heat and light
Development officer costs
Professional and consultants fees
External grants awarded
External grants awarded
Support and governance costs have been spread equally over the five main active activities of the Trust, with exception (for 2024) with the costs associated with the potential purchase of the property and trip to Islay for review of the feasibility to purchase the Petrol Station which have been allocated in full.
Governance costs includes payments to the accountant of £1,375 (2023: £1,250) for accountancy services and independent examination fees.
No Trustee (or any persons connected with them) received any remuneration during the year. One Trustee was reimbursed a total of £53 for project expenses (2024- two Trustees were reimbursed a total of £337 for office and project expenses).
The average monthly number of employees (including Trustees) during the year was:
No Trustee received remuneration or similar during the year.
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 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.
Gaelic project
Brought forward grant and other funding received from Bord-na-Gaidhig, Ragdoll Foundation, Argyll & Bute Supporting Communities Fund and National heritage Lottery Fund. This is to support the promotion of the Gaelic language in the local area.
Pathways,and playpark project
Consist of various historical donations received from the public.
Scottish Land Fund
Stage 1 grant received from the Scottish Land Fund to obtain a professional valuation and survey on the property purchase in 2024.
A further £61,443 grant was received to facilitate the purchase of the Heritage Centre and adjoining Post Office during the current financial period.
Highlands and Islands Enterprise (CAKE Fund)
Grant received to cover costs incurred to Islay to discuss feasibility of community ownership of petrol station.
Tennis court
Donations and grants received from both individuals and other community bodies in contribution to the Trust's own grant to support the resurfacing of the tennis court. This is a project undertaken by the Trust on behalf of Kyles Athletic Shinty Club.
Scottish Land Fund
A grant of £9,998 was received from the Scottish Land Fund to undertake a feasibility study for the Trust to purchase the Petrol Station. This is currently ongoing as at 28 February 2025.
War Memorial
Represents donations received from the War Memorial Group and Masonic Lodge to be used against future project costs in connection to the War Memorial.
These are unrestricted funds which are material to the Trust's activities.
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 (2024 - none).
These financial statements are separate Trust financial statements from Tighnabruaich District Community Renewables Ltd (TDCR).
Details of the Trust's subsidiaries at 28 February 2025 are as follows:
The investment in the subsidiary is stated at its fair value which is deemed to be its Net Asset value as at 28 February 2025. The Net Asset value excludes any uplift in the underlying value of the subsidiary's interests in Srondoire Wind Farmers Ltd ("SWFL"). The subsidiary's investment in the share capital of SWFL is included at a cost of £29,882 and the subsidiary's share of the net assets of SWFL at 31 August 2024 amounted to £68,307.
The wholly owned subsidiary TDCR is incorporated in Scotland (company number SC472297) and pays all of its profits to the charity either by dividend or under the gift aid scheme. TDCR is a shareholder in SWFL and is an investment vehicle for distributions from SWFL.