The trustees present their annual report and financial statements for the year ended 31 March 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 charity'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)” (as amended for accounting periods commencing from 1 January 2016)
The charity's principal aim is the protection and enhancement of the environment of an area of land in Sand on the Westside of Shetland for the benefit of future generations.
Another year of general maintenance and thank you to the small group of experienced volunteers who have helped to make the garden areas neat and tidy for the visitors to enjoy.
Still in the early stages of development is a memorial garden between two of the shelterbelts. Paths have been mown and once the area has been 'licked into shape' it is envisaged that the public will be able to donate a tree, to the garden area, in memory of a loved one who passed away.
The Statement of Financial Activities shows a profit of £6,533 (2024: deficit £2,152) and our reserves stand at £135,224 in total (2024: £128,691).
The transfer between unrestricted and restricted funding of £759 (2024: £893) relates to released capital grant funding received to acquire assets and is being released at the same rate as depreciation is charged on the asset.
The reserves are held at a level to ensure the next year's work can be undertaken and achieved. Any additional work considered will only proceed if sufficient reserves are held or additional funding can be obtained.
Under the memorandum and articles of association, the charity has the power to make any investment, which the trustees see fit. The trustees have chosen to use a treasurer's account with the Royal Bank of Scotland. The trustees consider the return on investments to be satisfactory.
The trustees has assessed the major risks to which the charity is exposed, in particular to the operations and finances of the company, and are satisfied that systems are in place to mitigate exposure to the major risks.
The charity aims to continue its work developing the gardens.
Da Gairdins Environment Company Limited is constituted as a company limited by guarantee and is therefore governed by a memorandum and articles of association. It was incorporated on 21 September 2006 and gained charitable status on 26 September 2006.
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 of the company are also trustees of the charity and there are no other trustees. All the trustees named served throughout the year. The Board has the power to appoint additional trustees as it considers fit to do so.
All of the trustees are members of the charity and guarantee to contribute £1 in the event of a winding up.
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
The trustees' report was approved by the Board of Trustees.
I report on the financial statements of the charity for the year ended 31 March 2025, which are set out on pages 4 to 12.
The charity’s trustees, who are also the directors of Da Gairdins Environment Company Ltd for the purposes of company law, are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investments (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the 2006 Accounts Regulations does not apply.
It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Act and to state whether particular matters have come to my attention.
In the course of my examination, no matter has come to my attention:
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 financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;
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.
Da Gairdins Environment Company Ltd is a private company limited by guarantee incorporated in Scotland. The registered office is Haggersta, Whiteness, Shetland Isles, ZE2 9GJ.
The financial statements have been prepared in accordance with the charity'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 charity is a Public Benefit Entity as defined by FRS 102.
The charity 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 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.
Interest income is recognised when receivable.
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be recovered and is reported as part of the expenditure to which it relates.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for the beneficiaries.
Governance costs include the costs associated with meeting the consitutional and statutory requirements of the charity.
All costs are allocated between the expenditure categories of the SoFA on a basis designed to reflect the use of the resource.
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:
Freehold land is not depreciated. Freehold buildings are not depreciated as they are considered to have a useful life of greater than 50 years and so any depreciation charge is considered immaterial. The trustees consider that this departure is necessary in order to provide a true and fair view.
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).
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 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 charity's balance sheet when the 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 charity’s contractual obligations expire or are discharged or cancelled.
Investments
Rent received
Insurance
Light and heat
Repairs and maintenance
Telephone
Motor running expenses
Sundry costs
Stationery
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
No trustees were reimbursed for expenses in the year.
The average monthly number of employees during the year was:
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.
During the year the charity entered into the following transactions with related parties:
Mr O Isbister is a director of Da Gairdins Environment Company and the owner of the Plantiecrub. During the year, £Nil (2024: nil) of goods and services were purchased from the Plantiecrub. At the year end the balance owed to the Plantiecrub was nil (2024: nil).
The company received donations of £11,000 (2024: £3,000) from Mrs R Inkster who is also a director. £20 of rent (2024: £20) was also received from Mrs R Inkster.