REGISTERED COMPANY NUMBER: SC154075 (Scotland)

REGISTERED CHARITY NUMBER: SC004883

Report of the Trustees and

Audited Financial Statements for the Year Ended 31 March 2025

for

Gordon Rural Action

(A Company Limited by Guarantee)

Page

Report of the Trustees

1

to

7

Report of the Independent Auditors

8

to

11

Statement of Financial Activities

12

Balance Sheet

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

to

32

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2025. The trustees have adopted the provisions of 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).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The principal objective of the organisation continues to be "to improve the quality of life for individuals within our communities through the provision of a good quality, cost-effective and focused information and advice service". To achieve this we:

- Work in partnership with other third sector organisations, to achieve maximum benefits for our clients;

- Provide outreach and home visits advisor appointments to clients with limited accessibility to our advice centres;

- Provide free, independent, confidential and impartial advice on a range of issues including benefits, debt, housing, employment and consumer problems.

- Promote and support a successful, environmentally friendly and sustainable social enterprise business which provides good quality affordable products and services to our customers.

- Actively engage with the Huntly Town Team playing an integral part of the town development strategy to embed ourselves in wider community initiatives.

Significant activities

Trustees of Gordon Rural Action ensure that funding, staff and volunteers are in place to deliver the priorities that meet the above objective and to develop new areas of activity. We take part in annual Strategy development workshops to discuss ways in which we can diversify our services to meet the needs of our clients in the longer term. In addition to this, we hold regular board meetings bi-monthly throughout the year to liaise with our staff representatives and take action on any issues arisen from this.

The Chief Officer is the main point of contact for the Trustee's and they are appointed by the board to oversee the operational activities of both the Advice and Enterprise aspects of the organisation.

The main activities of the organisation during the period have been:

- The provision of a general advice service

- The provision of a baby bank

- The provision of a Uniform exchange

- The provision of employment and volunteering opportunities

- The operation of a charity shop

- The operation of the Bikery

- Other activity commensurate with our objectives

STRATEGIC REPORT

Achievements and performance

Charitable activities

24/25 has been a busy year with managing the building renovations and continuing to deliver on all our projects. We continued to look at new funding opportunities to expand successful projects and also consolidating existing projects to firmly secure the Community Support Hub with our funding partners and the community.

As with previous years, funding has been a key consideration for GRA, building a strategy for the future and helping us to invest in our infrastructure and our buildings to ensure the continuation of GRA through a building fit for purpose and accessible and welcoming to all.

Funding for the year ahead has proven more difficult as the landscape has changed, budgets reduced, and priorities altered. This means we start 2025 in a more uncertain position than we would like as we are still awaiting outcomes from some key funders.

The management team continued to access new areas of funding and have successfully applied for £748,859 of funding in 2024/25 some of which is carried into the year ahead.

TP&I £47,000

National Lottery £54507

Foundation Scotland upstream £31,666

Glebefoot £5000

Clashindarroch windfarm £20,000

Rural Poverty Alleviation fund £6050

Shine Bright, 7 Stars £1900

Food Bank Financial Inclusion Project £3380

Pockets and Prospects £600

Local voices wellbeing fund £900

Nestrans £93,334

Winter Challenge Fund £7550

Glens of Foudland £3000

Tesco/Groundwork Trust £1500

Cycling UK £6342

Paths for All £52,172

Rural Communities Challenge Fund £18958.55

Garfield Weston £30,000

Baxter Foundation £20,000

UKSPF £249,999

The Clothworkers Foundation £45,000

Community Ownership Fund £50,000

In May 2024 we completed the purchase of no 47-49 Gordon Street securing the space for the Bikery and the Food Pod going forward and enabling the Community Support Hub to have free spaces to move out of no 55 Gordon Street during the renovations.

The Renovations started in April 2024 with Phase 1 - the Charity Shop. The shop moved into space at the back of the bikery building during this time and saw a large decrease in sales which impacted our cashflow. The shop was completed and reopened in December 2024. Since reopening sales have increased by over 50% and the comments from the public and volunteers have been extremely positive.

And have included, "Thank you for doing this for the town, it looks beautiful!"

The Charity Shop has gone from strength to strength since reopening, the volunteers and staff have worked incredibly hard to maintain very high standards and ensure the shop continues to always look good. This is reflected in the sales and the continued positive feedback - thank you and well done to them all.

Phases 2 and 3 are close to completion with the rear part of the building being demolished and a new space built to house the Baby Bank, Uniform Exchange, Community spaces, accessible bathrooms and welcoming staff space. The new spaces are light, warm and airy and we are really looking forward to moving into them and opening to the public.

The build has seen its challenges especially in relation to funding and VAT which has been time consuming and complicated to manage. I would like to take a moment to thank Becky our Business and Finance Officer for her hard work, diligence and support during this process.

The Advice Service has continued to be in demand and is working with new partners to develop a strategy that puts our clients at the centre of what we do.

They continue to be busy assisting clients with a CFG of almost £850,000 for the year. In 2025 we will begin the process of reaccreditation for National Standards for Advice and Information Providers with a peer review in September 2025.

The Advice Team Coordinator, Laura Murray is ensuring standards are maintained and aims to improve on our previous scores when we submit to review.

We will be increasing our focus on outreach over the coming year with regular days at Networks of Well Being, Grampian Opportunities and increased drop-in days.

The Support Services provision has expanded to meet the needs of our clients and increased demand over the past year driven by the cost-of-living crisis.

Our Service Coordinator Kayleigh is driving the projects forward with our Community Connections project increasing in rural outreach and open days enabling families to drop in and browse our items choosing what they would like. We took the projects to rural areas to identify where there are gaps in service provision and, in line with our 3-year strategy, this will be built upon going forward incorporating more support projects including advice and food provision.

Calum our Upstream Development Officer is in year 3 of his project which has now been extended by a further 3 years by the funder, Foundation Scotland, due to the success and progress made. His work looking at GRA projects and how they can tackle poverty and inequality in an upstream way and not at crisis point has influenced our future planning and strategy. He has also made links with partners and funders enabling GRA to have a seat at the table when decisions about the future of tackling poverty are made.

The Bikery had a lot of changes in 2024/2025 with a new project coordinator, training coordinator and new mechanics being hired. The project is focussing on becoming an industry leading training centre and has taken steps towards this with the development of the training space and becoming the first Park Tool School in Northern Scotland. The project has funding secured for 2025/2026 enabling it to continue moving forward helping people learn how to ride and maintain their bikes.

Financial review

Financial position

Net resources for the year show a surplus of £659,464 (2023/24, £104,904) which is an increase on last year's financial performance. This is largely due to funding being received for the renovation of 55 Gordon Street.

'The charity received restricted funds of £1,051,227 (2023/24: £377,048) during the year. The application of these arnounts is at the discretion of the Trustees under the terms of the funder.The restricted fund income of the charity derives from the local council, charities, other funders and individuals. The main element of the restricted fund income has come from Aberdeenshire Council and the UK Shared Prosperity Fund towards the redevelopment of 55 Gordon Street.

All other funds of the charity are unrestricted. The unrestricted fund income of the charity derives from donations, rentals and shop income. Our total unrestricted funds received in 2024/25 was £138,098 (2023/24, (123,429).

At £529,861 our expenditure was higher than in 2023/24 (£395,575) which is largely in relation to· increased wages costs incurred in service delivery, the bikery and the shop.

Reserves policy

Restricted reserves - funds which are for specific ·projects as specified by the donor. The level of restricted funds held at the year end were £127,517 (2023/24: £157,618.)

Unrestricted reserves - are funds held to mitigate against risks to the operation as a whole which might otherwise result in closure. It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to three months' 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 charity's current activities while consideration is given to ways in which additional funds may be raised. The level of unrestricted funds held at the year end were £889,127. (2023/24: £199,562). The majority of these funds are held in fixed assets which would need to be sold in order for them to be realised.

Future plans

Next, we intend to further solidify and secure GRA financially with continued funding and investment.

The building works are expected to be completed in 2025 and the building will completely reopen to the public shortly after this.

At present we are working on relocating all the projects to ensure continuity during the building works and ensure we still meet the needs of our community and the requirements of our funding. This is a big job, and we really appreciate everyone's assistance and patience whilst this is happening.

The purchase of no 47 was completed in May 2024 and we have commissioned a feasibility study to allow us to look at upgrades required to the building and associated costs with the intention of securing funding for this once no 55 is completed and we are able to access funds.

Our newly formed fund-raising committee are working hard planning events to help GRA secure additional unrestricted funding to support our projects. Thank you to all of the staff and volunteers who are giving up free time to be part of this committee and good luck with all the events.

We would like to thank the team of volunteers and staff for all their hard work and support over the last year as we pushed forward with plans for the building work and made changes and expanded projects.

Thank you for believing in and supporting GRA and for being a part of it.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Gordon Rural Action is a charity founded in 1978, gaining registered charitable status in 1981 and incorporated to become a charitable company limited by guarantee in November 1994. In the event of the company being wound up, members are required to contribute an amount not exceeding £1.

Charity constitution

Gordon Rural Action is a charitable company limited by guarantee and was set up in accordance with the Scottish Charity Regulator.

The principle object of the company is to improve the quality of life for individuals within our communities through the provision of a good quality, cost-effective and focused information and· advice service.

There have been no changes in the objectives since the last annual report.

Recruitment and appointment of new trustees

The directors of the company are also the trustees for the purposes of charity law and under the company's articles are known as Directors of the Board. Under the requirements of the Memorandum and Articles of Association all the Directors must retire at the AGM and can be re-appointed if willing to do so.

Directors seek to reflect the varied nature of the charity's work in the board membership. Most directors are involved in various aspects of the voluntary sector and have been recruited through advertisements in Gordon Rural Action publications, local press and through personal contacts in the voluntary sector. We also seek to recruit board members with professional skills such as experience in finance and personnel to maintain a broad and relevant mix of competencies.

Potential directors are required to complete an application form and provide two references. Following a successful three months probationary period the appointment will be ratified. Only the Board is entitled to appoint Directors.

Most directors are already familiar with the work of the organisation having either worked for the organisation in the past, been involved in a voluntary capacity or are familiar with the work of Gordon Rural Action because they are involved in other aspects of the voluntary sector in Aberdeenshire. New directors receive a pack with relevant up to date information about the organisation and are encouraged to attend events run by Gordon Rural Action.

Board meetings are held at least 6 times a year and are attended by the Chief Officer and Strategic Outcomes Officer.

Organisational structure

The board, which meets on a regular basis, administers the charity. Emma Selway-Grant, Chief Officer, is responsible for the day to day management of the charity.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

Financial risk is controlled by the use of budgetary allocation and the production of regular accounts to monitor and control income and expenditure, thus identifying problems at an early stage to allow actions to be taken to mitigate any threat. Policies, procedures and protocols are in place to ensure compliance with Health and Safety regulations and are updated when necessary.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

SC154075 (Scotland)

Registered Charity number

SC004883

Registered office

55 Gordon Street

Huntly

Aberdeenshire

AB54 8EQ

Trustees

G Berkin

G Pinsent

G R Tarrant

L A Grant (appointed 25.8.25)

Senior Statutory Auditor

Louise A Considine

Auditors

The Grant Considine Partnership

Statutory Auditors & Chartered Accountants

46 High Street

Banchory

Aberdeenshire

AB31 5SR

Solicitors

Peterkins

3 The Square

Huntly

AB54 8AE

Banker

The Royal Bank of Scotland

Huntly

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Gordon Rural Action for the purposes of company law) are responsible for preparing the Report of the Trustees 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. Under that law, the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

Under company law the trustees must not approve the financial statements unless they are satisfied that they 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 period. In preparing those 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 accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 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 so far as the trustees are aware:

-	there is no relevant audit information of which the charitable company's auditors are unaware; and

-	the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity's website.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 11 December 2025 and signed on the board's behalf by:

G R Tarrant - Trustee

Opinion

We have audited the financial statements of Gordon Rural Action (the 'charitable company') for the year ended 31 March 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the charitable company's affairs as at 31 March 2025 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 8 of the Charities Accounts (Scotland) Regulations 2006.

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 Auditors' 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 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.

Conclusions relating to going concern

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 trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:

-	the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Trustees has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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 Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

-	adequate and 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.

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees 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.

Our responsibilities for the audit of the financial statements

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 a Report of the Independent Auditors 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:

- the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise

non-compliance with applicable laws and regulations;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including the Charities Accounts (Scotland) Regulations 2006 and the Charities and Trustee Investment (Scotland) Act 2005.

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to

instances of non-compliance throughout the audit;

- obtained from management within the organisation information about their own identification and assessment of the

risks of irregularities

- review of the Board minutes

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud

- consideration of fraud risk factors such as management override of controls

- other sources

All audit engagement team members were alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Owing to the inherent limitations of an audit, there is unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISA's (UK). The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may

involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

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 the trustees those matters we are required to state to them in an auditors' 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 and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Louise A Considine (Senior Statutory Auditor)

for and on behalf of The Grant Considine Partnership

Statutory Auditors & Chartered Accountants

Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006

46 High Street

Banchory

Aberdeenshire

AB31 5SR

11 December 2025

2025

2024

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

4

8,626

799,877

808,503

6,422

Charitable activities

7

Aberdeenshire Council (advisory activities)

3,380

63,100

66,480

97,554

Other income (advisory activities)

28,000

94,916

122,916

86,647

Charity shop

840

-

840

1,423

Other income (cycles)

-

93,334

93,334

196,231

Other trading activities

5

88,789

-

88,789

104,831

Investment income

6

3,066

-

3,066

2,371

Other income

5,397

-

5,397

5,000

Total

138,098

1,051,227

1,189,325

500,479

EXPENDITURE ON

Raising funds

8

41,450

969

42,419

36,017

Charitable activities

9

Advisory activities

38,498

168,475

206,973

209,526

The Bikery

43,872

145,207

189,079

103,141

Support costs

67,883

23,507

91,390

45,899

Other

-

-

-

992

Total

191,703

338,158

529,861

395,575

NET INCOME/(EXPENDITURE)

(53,605

)

713,069

659,464

104,904

Transfers between funds

20

743,170

(743,170

)

-

-

Net movement in funds

689,565

(30,101

)

659,464

104,904

RECONCILIATION OF FUNDS

Total funds brought forward

199,562

157,618

357,180

252,276

TOTAL FUNDS CARRIED FORWARD

889,127

127,517

1,016,644

357,180

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

2025

2024

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

15

851,667

-

851,667

202,225

CURRENT ASSETS

Stocks

16

6,500

-

6,500

5,727

Debtors

17

108,331

1,935

110,266

3,817

Cash at bank and in hand

99,309

125,582

224,891

173,244

214,140

127,517

341,657

182,788

CREDITORS

Amounts falling due within one year

18

(176,680

)

-

(176,680

)

(27,833

)

NET CURRENT ASSETS

37,460

127,517

164,977

154,955

TOTAL ASSETS LESS CURRENT LIABILITIES

889,127

127,517

1,016,644

357,180

NET ASSETS

889,127

127,517

1,016,644

357,180

FUNDS

20

Unrestricted funds

889,127

199,562

Restricted funds

127,517

157,618

TOTAL FUNDS

1,016,644

357,180

The financial statements were approved by the Board of Trustees and authorised for issue on 11 December 2025 and were signed on its behalf by:

G R Tarrant - Trustee

Cash flows from operating activities

Cash generated from operations

1

715,148

132,523

Net cash provided by operating activities

715,148

132,523

Cash flows from investing activities

Purchase of tangible fixed assets

(666,567

)

(54,045

)

Sale of tangible fixed assets

-

200

Interest received

3,066

2,371

Net cash used in investing activities

(663,501

)

(51,474

)

Change in cash and cash equivalents in the reporting period

51,647

81,049

Cash and cash equivalents at the beginning of the reporting period

173,244

92,195

Cash and cash equivalents at the end of the reporting period

224,891

173,244

1.	RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

2025

2024

£

£

Net income for the reporting period (as per the Statement of Financial Activities)

659,464

104,904

Adjustments for:

Depreciation charges

17,124

9,748

Loss on disposal of fixed assets

-

992

Interest received

(3,066

)

(2,371

)

Increase in stocks

(773

)

(456

)

(Increase)/decrease in debtors

(106,449

)

4,977

Increase in creditors

148,848

14,729

Net cash provided by operations

715,148

132,523

2.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank and in hand

173,244

51,647

224,891

173,244

51,647

224,891

Total

173,244

51,647

224,891

1.	STATUTORY INFORMATION

Gordon Rural Action is a private charitable company limited by guarantee and registered in Scotland. The charity's registered number, company number and registered office can be found in the Reference and Administration Details section of the Report of the Trustees.

The presentation currency of the financial statements is the Pound Sterling (£). Monetary amounts in these financial statements are rounded to the nearest £.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. All income is shown net of value added tax, where applicable.

The following specific policies are applied to particular categories of income:

- income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.

- legacy income is recognised when receipt is probable and entitlement is established.

- income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.

- income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Irrecoverable VAT is charged as a cost against the activity for which the expediture was incurred.

- expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.

- expenditure on charitable activities includes all costs incurred by the charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.

- other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.

Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Tangible fixed assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Freehold property - 2% on valuation

Plant and machinery - 30% reducing balance

Motor vehicles - 25% reducing balance

Bikery equipment - 15% reducing balance

Computer equipment - 33% straight line

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 and impairment loss.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Designated funds are unrestricted funds earmarked by the trustees for particular future projects or commitments.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

Going Concern

The trustees are confident that the charity can still operate fully when required and fund the required resources without hesitation. The trustees are also confident in the charity's ability to secure future funding and thus have prepared the accounts on a going concern basis.

Financial instruments

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 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

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 future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction 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 creditor are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classed 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity's contractual obligations expire or are discharged or cancelled.

Government Grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the charity will comply with the conditions attaching to them and the grants will be received.

Where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Useful economic life of tangible assets

The annual depreciation charge for the tangible assets is sensitive to changes in the estimated useful economic life and residual values of the assets. The useful economic life and residual value is re-assessed annually. It is amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. The depreciation policies used are detailed in the accounting policies and the carrying amount of the assets is detailed in note 13.

4.	DONATIONS AND LEGACIES

2025

2024

£

£

Donations

8,301

6,422

Grants

799,877

-

Donated services and facilities

325

-

808,503

6,422

Grants received, included in the above, are as follows:

2025

2024

£

£

Place Based Investment Program

335,000

-

UK Shared Prosperity Fund

249,996

-

Community Ownership Fund

50,000

-

Garfield Weston

30,000

-

Baxters Foundation

17,625

-

Paths for All

52,172

-

Tesco Stronger Starts

1,125

-

Clothworkers Foundation

35,000

-

Robertson Trust

10,000

-

Rural Communities Fund

18,959

-

799,877

-

5.	OTHER TRADING ACTIVITIES

2025

2024

£

£

Fundraising events

9,211

2,818

Shop income

39,184

57,940

Rent income

6,800

2,400

Bikery sales

24,773

34,400

Bikery services

7,797

5,386

Bikery repairs

1,024

1,887

88,789

104,831