REGISTERED COMPANY NUMBER: SC389404 (Scotland)

REGISTERED CHARITY NUMBER: 038822

Report of the Trustees and

Financial Statements for the Year Ended 31 January 2026

for

Innerleithen Community Trust

Page

Report of the Trustees

1

to

3

Independent Examiner's Report

4

Statement of Financial Activities

5

Balance Sheet

6

to

7

Notes to the Financial Statements

8

to

13

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 January 2026. 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 object of the charity is the advancement of citizenship and community development, including rural regeneration, and the promotion of civic responsibility, volunteering and the voluntary sector, all within Innerleithen, Traquair and the Glen area comprising of the all postcode units in EH44, by providing grants to individuals or organisations enabling then to carry out activities.

ACHIEVEMENTS AND PERFORMANCE

Charitable activities

This report covers the period from February 2025 to January 2026. We report on another busy, difficult and productive year for ICT.

After storm damage in Pirn Wood, it was agreed to cost professional expertise to make tree damage safe. The much-used pathways in the wood were made safe by volunteers and a local tree surgeon carried out the major works to remove as many of the obvious unsafe risks as possible.

The Mill Lade Path Project saw a series of workshops on heritage, ecology and industrial archaeology carried out to glean information about the Lade and interpretation boards along the Lade were produced. Two days with the Archaeologists were useful and a walk with the specialist Ecologist and Artist took place. The workshops involved primary school children, older (over 60s) members of the community who have memories of the Lade, the youth club and a public meeting was held. The interpretive panels were installed by volunteers and the path officially opened in November. Funding from Destination Tweed is acknowledged as is the volunteer input from Rachel Hunter.

Materials from the Mills of Tweeddale Project formed an exhibition at the Wells in July for a two-week opening. Also, a display at the silver band concert, where the musical theme was local industry saw great interest in the exhibition. At both events volunteers manned the exhibitions.

Volunteers turned out and good progress on the TVRP was made over the summer. New volunteers have come forward and they are in a younger age group. On the Walkerburn section the counter measured an average of 483 cyclist per week using the pathway as well as many walkers of all ages. We are pleased to continue maintenance on these community assets.

Flower baskets were watered by volunteers again and some new younger recruits have come forward to replace those who have dropped out! Thanks are due to all our volunteers and we are pleased to provide opportunities that benefit the community.

Caerlee Mill has now been demolished for redevelopment. This Trust has expressed interest in taking over the building beside the old back gates of the mill. Discussions around the pros and cons of progressing this are ongoing. We requested a visit to look at the building before a decision will be made on taking the building over and creating a textile heritage hub.

The Heritage Group is still active and will meet with the developer to have input on heritage aspects of the mill site.

Our Trishaw has had another busy year providing a facility for those less able to get out and enjoy the countryside. Residents for the St Ronan's care home and Mercer Court sheltered housing complex has regular weekly outings. Also, the RVS group who meet in the church and provide activity and lunches used the service over the summer months. Requests for outings continue from members of the community of all ages, including a bride on the way to her wedding. In total 126 outings with 47 individuals benefited at community events and on scenic routes.

It was pleasing to spend over £15,000 on projects to benefit the community in the last year and we thank Jean Wilson for her role as Treasurer and all Trustees and volunteers and thank you all for your support and backup over the last year.

FINANCIAL REVIEW

Financial position

Although there has been an increase in total grants received, there has been a decrease in donations received as last year was higher than usual. Overall the charity has generated a deficit of £3,668 in the year (2025 - deficit of £3,706).

The trust continued to act as banker for three local volunteer community groups, recording their income and expenditure, receiving donations and making funds available as required. Independently, the groups manage the cultivate the Flowerbeds, the Wells Group maintains the gardens at St. Ronan's Wells and the Mill Lade. We will continue with the Wells Group and held £825.21 for them at the year end.

Reserves policy

The charity aims to hold funds to cover at least three months' worth of costs. Total unrestricted reserves available at year end was £11,452 (2025 - £12,958).

FUTURE PLANS

Future plans for the Memorial Hall and St Ronan's Wells were called into question after SBC initiated a review of all properties with a view to closing or transferring assets to save money. A public meeting for all interested parties in the community was well attended. The future of the Hall and the Wells buildings were discussed. Two groups were set up after the meeting, one to look at the future of the Wells and one to look at taking over the management of the Hall. Both are still works in progress and things are moving forward

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.

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. Consideration is given to this area at Trustees' meetings which take place four to five times a year.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

SC389404 (Scotland)

Registered Charity number

038822

Registered office

Leithen Foot

Princes Street

Innerleithen

EH44 6JU

Trustees

R McGinn

G Brown

D J C Gordon

E McKie

J H Lister

Mrs J Wilson

G Meikle

Independent Examiner

Pamela Baillie CA

Gall Robertson CA

Tweedside Park

Tweedbank

Galashiels

Selkirkshire

TD1 3TE

Approved by order of the board of trustees on 25 May 2026 and signed on its behalf by:

Mrs J Wilson - Trustee

I report on the accounts for the year ended 31 January 2026 set out on pages five to thirteen.

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.

Pamela Baillie CA

The Institute of Chartered Accountants of Scotland

Gall Robertson CA

Tweedside Park

Tweedbank

Galashiels

Selkirkshire

TD1 3TE

25 May 2026

31.1.26

31.1.25

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2,692

-

2,692

3,300

Charitable activities

General

1,000

-

1,000

7,220

Other trading activities

2

104

-

104

37

Total

3,796

-

3,796

10,557

EXPENDITURE ON

Raising funds

(6

)

-

(6

)

4

Charitable activities

General

7,470

-

7,470

14,259

Total

7,464

-

7,464

14,263

NET INCOME/(EXPENDITURE)

(3,668

)

-

(3,668

)

(3,706

)

RECONCILIATION OF FUNDS

Total funds brought forward

30,327

-

30,327

34,033

TOTAL FUNDS CARRIED FORWARD

26,659

-

26,659

30,327

31.1.26

31.1.25

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

6

15,207

-

15,207

17,369

CURRENT ASSETS

Stocks

7

825

-

825

819

Cash at bank

11,175

1,167

12,342

13,595

12,000

1,167

13,167

14,414

CREDITORS

Amounts falling due within one year

8

(548

)

(1,167

)

(1,715

)

(1,456

)

NET CURRENT ASSETS

11,452

-

11,452

12,958

TOTAL ASSETS LESS CURRENT LIABILITIES

26,659

-

26,659

30,327

NET ASSETS

26,659

-

26,659

30,327

FUNDS

9

Unrestricted funds

26,659

30,327

TOTAL FUNDS

26,659

30,327

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 January 2026.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 January 2026 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 25 May 2026 and were signed on its behalf by:

J Wilson - Trustee

R McGinn - 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 directors have assessed a period of 12 months from the date of approval of the financial statements and consider that no material uncertainties exist that cast significant doubt about the ability of the company to continue as a going concern. Thus the directors adopt the going concern basis of accounting in preparing the financial statements.

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.

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.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each assets over its estimated useful life.

Land is held at cost with no depreciation provided.

Plant and machinery - 20% on cost.

Computer equipment - 25% on cost.

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.

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.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.

2.	OTHER TRADING ACTIVITIES

31.1.26

31.1.25

£

£

Book sales

104

37

3.	NET INCOME/(EXPENDITURE)

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

31.1.26

31.1.25

£

£

Depreciation - owned assets

2,162

2,177

4.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 January 2026 nor for the year ended 31 January 2025.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 January 2026 nor for the year ended 31 January 2025.

5.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

funds

funds

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

3,300

-

3,300

Charitable activities

General

7,220

-

7,220

Other trading activities

37

-

37

Total

10,557

-

10,557

EXPENDITURE ON

Raising funds

4

-

4

Charitable activities

General

14,223

36

14,259

Total

14,227

36

14,263

NET INCOME/(EXPENDITURE)

(3,670

)

(36

)

(3,706

)

Transfers between funds

6,315

(6,315

)

-

Net movement in funds

2,645

(6,351

)

(3,706

)

RECONCILIATION OF FUNDS

Total funds brought forward

27,682

6,351

34,033

TOTAL FUNDS CARRIED FORWARD

30,327

-

30,327

6.	TANGIBLE FIXED ASSETS

Freehold

Plant and

Computer

property

machinery

equipment

Totals

£

£

£

£

COST

At 1 February 2025 and 31 January 2026

12,630

16,803

572

30,005

DEPRECIATION

At 1 February 2025

-

12,064

572

12,636

Charge for year

-

2,162

-

2,162

At 31 January 2026

-

14,226

572

14,798

NET BOOK VALUE

At 31 January 2026

12,630

2,577

-

15,207

At 31 January 2025

12,630

4,739

-

17,369

7.

STOCKS

31.1.26

31.1.25

£

£

Stocks

825

819

8.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.1.26

31.1.25

£

£

Other creditors

1,320

1,230

Accrued expenses

395

226

1,715

1,456

9.	MOVEMENT IN FUNDS

Net

movement

At

At 1.2.25

in funds

31.1.26

£

£

£

Unrestricted funds

General fund

30,327

(3,668

)

26,659

TOTAL FUNDS

30,327

(3,668

)

26,659

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

3,796

(7,464

)

(3,668

)

TOTAL FUNDS

3,796

(7,464

)

(3,668

)

Comparatives for movement in funds

Net

Transfers

movement

between

At

At 1.2.24

in funds

funds

31.1.25

£

£

£

£

Unrestricted funds

General fund

27,682

(3,670

)

6,315

30,327

Restricted funds

Pathway maintenance

6,351

(36

)

(6,315

)

-

TOTAL FUNDS

34,033

(3,706

)

-

30,327

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

10,557

(14,227

)

(3,670

)

Restricted funds

Pathway maintenance

-

(36

)

(36

)

TOTAL FUNDS

10,557

(14,263

)

(3,706

)

A current year 12 months and prior year 12 months combined position is as follows:

Net

Transfers

movement

between

At

At 1.2.24

in funds

funds

31.1.26

£

£

£

£

Unrestricted funds

General fund

27,682

(7,338

)

6,315

26,659

Restricted funds

Pathway maintenance

6,351

(36

)

(6,315

)

-

TOTAL FUNDS

34,033

(7,374

)

-

26,659

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

14,353

(21,691

)

(7,338

)

Restricted funds

Pathway maintenance

-

(36

)

(36

)

TOTAL FUNDS

14,353

(21,727

)

(7,374

)

10.	RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 January 2026.

11.	INDEPENDENT EXAMINER

The amount payable to Gall Robertson for the independent examination of the accounts is £765 (2025 - £640) and for company secretarial duties is £110 (2025 - £235).

12.	GOING CONCERN

The trustees know of no material uncertainties relating to the charity's ability to continue as a going concern.

13.	PUBLIC BENEFIT ENTITY

The charity is a public benefit entity.

14.	VOLUNTEERS

The charity does rely on volunteers to carry out the services as arranged by the trustees such as maintenance of paths and upkeep of flower baskets.