REGISTERED COMPANY NUMBER: SC394587 (Scotland)

REGISTERED CHARITY NUMBER: SC11149

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

FOR

HARRIS MUTUAL IMPROVEMENT ASSOCIATION

Page

Report of the Trustees

1

to

3

Independent Examiner's Report

4

Statement of Financial Activities

5

Balance Sheet

6

Notes to the Financial Statements

7

to

14

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 objects of the charity are:-

- to promote the well-being of the community resident in the geographical area of Harris by associating the local authorities, voluntary organisations and residents in a common effort to further health, to advance education, to provide a meeting place and facilities for physical and mental training and recreation and social, moral and intellectual development and to foster a community spirit for the achievement of these and other such objects as may be by law deemed to be charitable.

- to secure the establishment, maintenance and management of a community centre for activities promoted by the Association in furtherance of the above objects or any of them.

Significant activities

During the period the Association continued to manage, maintain and develop the community centre in Tarbert, Isle of Harris.

Volunteers

The contribution of volunteers (including directors, members and individuals from the community) has been, and continues to be, of immense benefit to the charity in establishing, maintaining and managing the community centre.

ACHIEVEMENTS AND PERFORMANCE

Charitable activities

2025 has been another busy year for our Community Centre with fundraisers, kids clubs, Sunday services, craft markets, cadets group, consultations and much more. Having completed almost all of our major upgrades to the Community Centre last year, it was nice to have a break from large projects. Don't be fooled though, the weekly running of Tarbert CC, along with regular maintenance jobs, is still a solid effort!

We are pleased to say that so far during 2025, 100% of charities have had their hire fees waived as part of our Community Fund. This included the following groups and events;

Rionnagan Oga kids club, Harris Youth Council, Rionnagan Oga Easter/Halloween events, SES Parent Council Fundraising Café, Tarbert in Bloom's Gardener's Market, HHD Bingo Fundraiser, Tarbert Day Centre, Harris Charity Shop Official Opening, SES Primary/Secondary Proms & Halloween Dances, Grianan Day Centre Day, Butt to Barra Charity Cycle, CNAG Summer Youth Club, HVS Playscheme, Zumba Class & Steps Challenge Finale, Isle of Lewis Cancer Care Tea Party Fundraiser, Harris Ceilidh Dancers Annual Fundraiser, MacMillan Cancer Support - New with tags event

Through our own fundraising, we've not only managed to waive fees for the above, but we've also now raised enough for a Defibrillator to be installed. We'd hope to have this in place before the end of this year and we'll be working with Cammy Morrison to host a Community Training event for anyone who wishes to attend.

Other notable events that ran this year include, our annual jumble sale, the Scottish Opera performance, An Lanntair Children's workshops, Tom Sloss Tribute night, Yoga Classes, Sandwick Dance Academy class, Whisky Festival Ceilidh - IOHD, Magic Show, Hebrides International Film Festival and the Centenary Celebration of Finlay J Macdonald.

We have just recently had our Disabled Parking Bay marked out, an item that had been on our agenda for a while. We always ask that those using the Community Centre use the driveway for loading and unloading only and then park across in the main carpark, so as to keep the driveway clear for emergency vehicle access. This Bay will now act as a dedicated space for those who need accessible parking.

As always, a huge thanks goes to the committee of HMIA, as well as to our admin and cleaner. Without them we wouldn't be able to keep the Community Centre running as efficiently as it does!

FINANCIAL REVIEW

Principal funding sources

The charity is dependent on fundraising events, hall hires and donations to fund its operational costs. Full details of the charity's principal funding sources are included in the notes to the financial statements.

Investment policy and objectives

The charity's reserves are maintained in bank accounts as the current level of reserves are required to meet the Association's short term operational requirements.

Reserves policy

The General fund represents the unrestricted funds from past operating results. It also represents the free reserves of the charity. The trustees aim to maintain unrestricted reserves of £2,000 to cover expenses should the community centre have to close. The current level of unrestricted reserves is significantly in excess of this figure. Accordingly the trustees consider that the level of free reserves at 31 March 2025 is sufficient to meet the charity's ongoing operational requirements.

During the year the charity's expenditure exceeded income resulting in net expenditure of £3,034 for the period (2024 - net income of £3,806). This represents a decrease of £1,280 in unrestricted funds and a decrease of £1,754 in restricted funds. Unrestricted reserves has as a result increased to £25,905 (2024 - £27,185).

FUTURE PLANS

We have been successful in being granted 80% of the cost of installation of solar panels and a storage battery from the Scottish Government's Community and renewable Energy Scheme. (CARES) We hope to have the work completed as soon as possible and look forward to seeing the benefits!

For the 2025 Winter activities, we are aiming to have sewing classes, knitting and crochet classes, a decoupage class as well as running a cinema evening or two, trying our hand at our first Festive Dinner Dance and running a community lunch alongside this year's Remembrance Service. If anyone would like to become a volunteer, please just get in touch. The more volunteers we have, the more events we can run. We are always looking for volunteers to help maintain our Community Centre garden too!

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Association is a charitable company limited by guarantee, incorporated on 2 March 2011. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1. Prior to incorporation the charity operated as an unincorporated association and has been registered as a charity since 4 June 1973.

Recruitment and appointment of new trustees

The directors of the company are also charity trustees for the purpose of charity law.

Under the terms of the Memorandum and Articles of Association the Elected Directors are appointed by the members at the Annual General Meeting. One third of the Elected Directors must retire by rotation at each Annual General Meeting but are eligible for re-election.

The Board may also invite any Nominated Member of the company to nominate representatives to be appointed as Nominated Directors. Nominated Directors do not require to retire by rotation.

Organisational structure

The board consists of voluntary directors who manage the affairs of the charity through regular board meetings. The board members are heavily involved in the day to day operations of the charity. Until November 2016, the charity employed a manager who assisted in the implementation of decisions from the board.

Induction and training of new trustees

The charity undertakes training for trustees to ensure awareness and understanding of:-

- the responsibilities of directors;

- the organisational structure of the charity;

- the financial position of the charity; and

- the future plans and objectives of the charity.

Wider network

The charity has established links with other organisations and agencies to foster the aims and objectives of the organisation.

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.

The trustees have assessed the major risks to which the charity is exposed, in particular those relating to the operations and finances of the charity, and are satisfied that systems are in place to mitigate their exposure to the major risks.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

SC394587 (Scotland)

Registered Charity number

SC11149

Registered office

Tarbert Community Centre

Pier Road

Tarbert

Isle of Harris

HS3 3DG

Trustees

D J Mackay

H A Campbell

D Blake (appointed 26.2.25)

M Maclean

N A B Loye (resigned 26.2.25)

J Corderoy (appointed 26.2.25)

Independent Examiner

John E Moffat BA FCA

CIB Services

Chartered Accountants

63 Kenneth Street

Stornoway

Isle of Lewis

Western Isles

HS1 2DS

Bankers

Bank of Scotland

Tarbert

Isle of Harris

HS3 3DJ

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on 18 December 2025 and signed on its behalf by:

H A Campbell - Trustee

I report on the accounts for the year ended 31 March 2025 set out on pages five to fourteen.

Respective responsibilities of trustees and examiner

The charity's trustees are responsible for the preparation of the accounts in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). The charity's trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the Accounts Regulations does not apply. It is my responsibility to examine the accounts as required under Section 44(1)(c) of the Act and to state whether particular matters have come to my attention.

Basis of the independent examiner's report

My examination was 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 accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as 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 accounts.

Independent examiner's statement

In connection with 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 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and

-	to prepare accounts which accord with the accounting records and to comply with Regulation 8 of the 2006 Accounts Regulations

have not been met; or

(2)	to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

John E Moffat BA FCA

The Institute of Chartered Accountants in England and Wales

CIB Services

Chartered Accountants

63 Kenneth Street

Stornoway

Isle of Lewis

Western Isles

HS1 2DS

18 December 2025

31.3.25

31.3.24

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

210

-

210

1,316

Charitable activities

5

Community Centre

25,820

-

25,820

30,723

Other trading activities

3

600

-

600

159

Investment income

4

-

110

110

146

Total

26,630

110

26,740

32,344

EXPENDITURE ON

Raising funds

5,053

-

5,053

3,230

Charitable activities

6

Community Centre

22,857

1,864

24,721

25,308

Total

27,910

1,864

29,774

28,538

NET INCOME/(EXPENDITURE)

(1,280

)

(1,754

)

(3,034

)

3,806

RECONCILIATION OF FUNDS

Total funds brought forward

27,185

15,665

42,850

39,044

TOTAL FUNDS CARRIED FORWARD

25,905

13,911

39,816

42,850

31.3.25

31.3.24

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

12

1,273

6,076

7,349

4,832

CURRENT ASSETS

Debtors

13

3,044

-

3,044

3,065

Cash at bank and in hand

24,190

7,835

32,025

37,586

27,234

7,835

35,069

40,651

CREDITORS

Amounts falling due within one year

14

(2,602

)

-

(2,602

)

(2,633

)

NET CURRENT ASSETS

24,632

7,835

32,467

38,018

TOTAL ASSETS LESS CURRENT LIABILITIES

25,905

13,911

39,816

42,850

NET ASSETS

25,905

13,911

39,816

42,850

FUNDS

15

Unrestricted funds

25,905

27,185

Restricted funds

13,911

15,665

TOTAL FUNDS

39,816

42,850

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2025.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2025 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 18 December 2025 and were signed on its behalf by:

H A Campbell - Trustee

1.	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.

Going concern

The trustees have assessed the charity's ability to continue as a going concern and do not consider there to be any material uncertainties about the charity's ability to continue as a going concern.

Currency

The accounts are prepared in GBP (£).

Rounding

The accounts are rounded to the nearest pound.

Financial reporting standard 102 - reduced disclosure exemptions

The charitable company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':

•

the requirements of Section 7 Statement of Cash Flows.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions that affect the amounts reported for assets, liabilities, income and expenditure.

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 assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in future periods should it affect future periods.

The estimates and assumptions which carry a higher degree of risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

Useful economic lives of tangible fixed assets

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. They are amended when necessary to reflect current estimates, future investment, economic utilisation and the physical condition of the assets. See note 9 for details of the values of tangible fixed assets.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the income, there is sufficient certainty of receipt and so it is probable that the income will be received, and the amount of income receivable can be measured reliably. Income received in advance is deferred until the criteria for income recognition are met.

Grants generated to support the objects of the charity and without further specified purpose are taken to the Statement of Financial Activities in that period. Grants received which are related to capital expenditure or are for a specified purpose are transferred to Restricted Funds and are utilised to fund the future depreciation of the related capital expenditure or fund the costs relating to the specified purpose.

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. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates.

Raising funds

Costs of generating funds comprise the costs associated with attracting voluntary income and the costs of fundraising activities.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its objects and activities. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. The allocation of direct and support costs are analysed in the notes to the financial statements.

Governance costs

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include accountancy fees and costs linked to the strategic management of the charity.

Allocation and apportionment of costs

All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis e.g. estimated usage.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Buildings - fully depreciated

Fixtures and fittings - 20% on cost

Computer equipment - 25% on cost

Tangible fixed assets are stated at cost less accumulated depreciation. The costs of minor additions or those costing below £100 are not capitalised.

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 purposes.

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.

2.	DONATIONS AND LEGACIES

31.3.25

31.3.24

£

£

Donations

210

1,316

3.	OTHER TRADING ACTIVITIES

31.3.25

31.3.24

£

£

Other income

600

159

4.	INVESTMENT INCOME

31.3.25

31.3.24

£

£

Deposit account interest

110

146

All investment income arises from assets held within the UK.

5.	INCOME FROM CHARITABLE ACTIVITIES

31.3.25

31.3.24

Activity

£

£

Hall hires

Community Centre

1,209

296

Rental income

Community Centre

15,398

24,545

Fundraising events

Community Centre

-

640

Grants

Community Centre

700

700

Bar

Community Centre

8,513

4,542

25,820

30,723

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

31.3.25

31.3.24

£

£

Comhairle nan Eilean Siar

700

700

6.	CHARITABLE ACTIVITIES COSTS

Direct

Support

Costs (see

costs (see

note 7)

note 8)

Totals

£

£

£

Community Centre

22,942

1,779

24,721

7.	DIRECT COSTS OF CHARITABLE ACTIVITIES

31.3.25

31.3.24

£

£

Management fees

3,033

2,652

Insurance

2,683

3,668

Light and heat

3,194

4,676

Postage and stationery

141

545

Repairs and maintenance

8,381

6,567

Cleaning

3,646

4,298

Depreciation

1,864

1,362

22,942

23,768

8.	SUPPORT COSTS

Governance

Management

Finance

costs

Totals

£

£

£

£

Community Centre

728

91

960

1,779

Support costs, included in the above, are as follows:

31.3.25

31.3.24

Community

Total

Centre

activities

£

£

Telephone

511

521

Sundry expenses

217

101

Bank charges

91

-

Accountancy fees

960

918

1,779

1,540

9.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

31.3.25

31.3.24

£

£

Depreciation - owned assets

1,864

1,362

10.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2025 nor for the year ended 31 March 2024.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2025 nor for the year ended 31 March 2024.

11.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

fund

funds

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

1,316

-

1,316

Charitable activities

Community Centre

30,723

-

30,723

Other trading activities

159

-

159

Investment income

-

146

146

Total

32,198

146

32,344

EXPENDITURE ON

Raising funds

3,230

-

3,230

Charitable activities

Community Centre

19,536

5,772

25,308

Total

22,766

5,772

28,538

NET INCOME/(EXPENDITURE)

9,432

(5,626

)

3,806

RECONCILIATION OF FUNDS

Total funds brought forward

17,753

21,291

39,044

TOTAL FUNDS CARRIED FORWARD

27,185

15,665

42,850

12.	TANGIBLE FIXED ASSETS

Fixtures

and

fittings

£

COST

At 1 April 2024

21,617

Additions

4,381

At 31 March 2025

25,998

DEPRECIATION

At 1 April 2024

16,785

Charge for year

1,864

At 31 March 2025

18,649

NET BOOK VALUE

At 31 March 2025

7,349

At 31 March 2024

4,832

The charity owns and operates the Community Centre in Tarbert which was built about 40 years ago. No cost or valuation is attributed to the Community Centre as it is now fully depreciated. The property is valued at £691,000 for insurance purposes.

13.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.25

31.3.24

£

£

Trade debtors

1,250

1,364

Prepayments

1,794

1,701

3,044

3,065

14.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.25

31.3.24

£

£

Trade creditors

1,051

1,715

Accrued expenses

1,551

918

2,602

2,633

15.	MOVEMENT IN FUNDS

Net

movement

At

At 1.4.24

in funds

31.3.25

£

£

£

Unrestricted funds

General fund

27,185

(1,280

)

25,905

Restricted funds

Restricted fund

15,665

(1,754

)

13,911

TOTAL FUNDS

42,850

(3,034

)

39,816

Net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

26,630

(27,910

)

(1,280

)

Restricted funds

Restricted fund

110

(1,864

)

(1,754

)

TOTAL FUNDS

26,740

(29,774

)

(3,034

)

Comparatives for movement in funds

Net

movement

At

At 1.4.23

in funds

31.3.24

£

£

£

Unrestricted funds

General fund

17,753

9,432

27,185

Restricted funds

Restricted fund

21,291

(5,626

)

15,665

TOTAL FUNDS

39,044

3,806

42,850

Comparative net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

32,198

(22,766

)

9,432

Restricted funds

Restricted fund

146

(5,772

)

(5,626

)

TOTAL FUNDS

32,344

(28,538

)

3,806

FUNDS

General fund

The general fund represents unrestricted funds which the trustees are free to use in accordance with the charitable objects.

Restricted fund

This represents grants received from public funding agencies and trusts, and funds set aside by the charity, for a specified purpose or in respect of capital expenditure. The funds are utilised to fund the costs relating to the specified purpose or to fund the future depreciation of the capital expenditure.

16.	RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2025.