REGISTERED COMPANY NUMBER: SC154183 (Scotland)

REGISTERED CHARITY NUMBER: SC001528

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 March 2026

for

Voluntary Groups Sutherland

Page

Report of the Trustees

1

to

4

Independent Examiner's Report

5

to

6

Statement of Financial Activities

7

Balance Sheet

8

to

9

Notes to the Financial Statements

10

to

16

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 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 company has been formed to promote the benefit of the public within Sutherland by -

(a) Advancing citizenship and community development, including rural and urban regeneration and the promotion of civic responsibility, volunteering, the voluntary sector and the effectiveness and efficiency of charities

(b) Advancement of Education

(c) Prevention and Relief of Poverty

(d) any other purpose that may reasonably be regarded as analogous to any of the preceding purposes (eg relief of unemployment)

In pursuance of the objects listed in above, the company shall have the following powers:-

To deliver the following main areas of activity:-

1. Volunteering development

2. Social Enterprise development

3. Consulting, supporting, developing and representing the third sector.

4. To take and organise action for the furtherance and improvement of education and skills, transport, health, employment, arts and crafts, heritage, environment, information, social welfare and consumer protection or other issues which are relevant to the quality of life within Sutherland

5. Collaborating and working in partnership with public sector and private sector partners to improve the planning and delivery of public services by making them more responsive to the needs and aspirations of local communities

6. Providing education, training and re-training opportunities and work experience

7. Providing financial or technical assistance or advice to new businesses or existing businesses where it would lead to training and employment opportunities

ACHIEVEMENTS AND PERFORMANCE

Charitable activities

Our new operation of being based in Lairg and Golspie 2 days each week and outreach days in the North and the West is working very well. Community Groups now have a choice for where to meet us.

We were successful with our application to the ADWF for core costs of £20,000. This has enabled us to employ a Development Officer and an Administrator in September to support the Chief Officer.

Over the year we assisted with 232 requests for support - advice on such topics as:- fundraising, constitutions, OSCR, Governance advice. And in particular we have had increased requests to help support alterations to governing documents and the changes to charity law.

Independent Financial Examinations of accounts for small unincorporated charities for OSCR compliance continues to be a well-used service. We assisted 55 groups in our area and find there is an increasing demand for this service.

We continue to act as co-ordinator for The Gordonbush Project which runs a local Apprenticeship Scheme. The Project has secured funding to extend the scheme until 2028. The scheme is currently supporting 9 businesses and their apprentices. Since it started in 2015 the Scheme has supported 46 apprenticeships. Towards the end of the year we were asked to take on co-ordination of the Kyle of Sutherland Apprenticeship Scheme and this started at the end of March.

Our main source of funding comes from the Scottish Government via the Highland Third Sector Interface and focus of activity is linked to outcomes encouraging and supporting:- Active Citizenship, Quality within the Third Sector and Community Empowerment and Co-production.

We were grateful to receive a third round of funding, this time for £20,000 from the Anne Duchess of Westminster Fund to provide a Microgrant Fund for Sutherland. We worked with Highland Council Youth Development Officers and TYKES (Young Carers) to recruit young people from across the county to sit on the Assessment Panel. We had two panel meetings and successfully allocated all funds.

We wish to thank the Scottish Government via the Highland Third Sector Interface, Anne Duchess of Westminster Fund, and SSE Gordonbush for continued financial assistance which has enabled VGS to support third sector activity and the community in Sutherland.

FINANCIAL REVIEW

Reserves policy

The company derives its income mainly from grants towards the running costs of its activities, augmented by office services and donations.

The Directors have established a policy whereby the unrestricted funds held should be at least 9 months of general expenditure, including contingency for windup and staff redundancy costs.

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.

The governing documents of the charity are the Memorandum and Articles of the Association of the company, which was incorporated on 9th November 1994 as a company limited by guarantee of £1 per member, and which has no share capital. Permission has been obtained from the Registrar of Companies to omit the word "limited" from the company's name.

The names of the persons who served as directors during the year and up to the date of this report are listed above. The Articles of Association require that there should be a maximum of fifteen and a minimum of five directors, and they are elected from the membership at the annual general meeting of the company. One third of the directors fall due to retire at the AGM, and, being eligible, may offer themselves for re-election.

The charity is administered by the board of directors who meet together regularly. Day to day running of the company is carried out by paid staff. Directors are not remunerated for their work.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

SC154183 (Scotland)

Registered Charity number

SC001528

Registered office

c/o Lairg Community Centre

Main Street

Lairg

Sutherland

IV27 4DB

Trustees

Charlotte Gibson Vice Chair

Deirdre Mackay

Linda Munro (resigned 29.10.25)

Frances Gunn

Ellen Lindsay Chair

Marianne Hutchison

Joan MacKay

Christine MacKay Treasurer

Company Secretary

Christine Jean Ross

Independent Examiner

Marcus D. MacIver

Mackay & Co

Chartered Accountants

Unit 8

Golspie Business Park

Golspie

Sutherland

KW10 6UB

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 2 July 2026 and signed on its behalf by:

Ellen Lindsay - Trustee

I report on the accounts for the year ended 31 March 2026 set out on pages seven to sixteen.

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.

Marcus D. MacIver

The Institute of Chartered Accountants of Scotland

Mackay & Co

Chartered Accountants

Unit 8

Golspie Business Park

Golspie

Sutherland

KW10 6UB

2 July 2026

31.3.26

31.3.25

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

5,219

2,250

7,469

9,267

Charitable activities

3

General

70,077

28,143

98,220

72,360

Investment income

2

17,452

-

17,452

3,332

Other income

-

-

-

156,400

Total

92,748

30,393

123,141

241,359

EXPENDITURE ON

Charitable activities

General

56,286

30,393

86,679

72,465

NET INCOME

36,462

-

36,462

168,894

RECONCILIATION OF FUNDS

Total funds brought forward

405,891

-

405,891

236,997

TOTAL FUNDS CARRIED FORWARD

442,353

-

442,353

405,891

31.3.26

31.3.25

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

9

2,172

-

2,172

2,795

CURRENT ASSETS

Cash at bank and in hand

440,930

38,053

478,983

433,166

CREDITORS

Amounts falling due within one year

10

(749

)

-

(749

)

(749

)

NET CURRENT ASSETS

440,181

38,053

478,234

432,417

TOTAL ASSETS LESS CURRENT LIABILITIES

442,353

38,053

480,406

435,212

ACCRUALS AND DEFERRED INCOME

11

-

(38,053

)

(38,053

)

(29,321

)

NET ASSETS

442,353

-

442,353

405,891

FUNDS

12

Unrestricted funds

442,353

405,891

TOTAL FUNDS

442,353

405,891

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

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 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 2 July 2026 and were signed on its behalf by:

Charlotte Gibson - 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.

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 each asset over its estimated useful life.

Office equipment and fittings

-

20% on cost

Computer equipment

-

25% on cost

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.

2.	INVESTMENT INCOME

31.3.26

31.3.25

£

£

Rents received

-

1,029

Deposit account interest

17,452

2,303

17,452

3,332

3.	INCOME FROM CHARITABLE ACTIVITIES

31.3.26

31.3.25

Activity

£

£

Grants

General

98,220

72,360

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

31.3.26

31.3.25

£

£

Scottish Government

59,030

60,141

Gordonbush Windfarm - Apprentice Scheme

4,000

6,060

Kilbraur Windfarm

3,000

-

SSE - Work Placement

-

660

HIE

2,267

1,386

Highland Third Sector Interface

-

1,254

Highland Council

5,780

-

Anne Duchess of Westminster Fund

24,143

2,859

98,220

72,360

4.	SUPPORT COSTS

Governance

costs

£

General

1,608

5.	NET INCOME/(EXPENDITURE)

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

31.3.26

31.3.25

£

£

Depreciation - owned assets

623

806

Surplus on disposal of fixed assets

-

(156,400

)

6.	TRUSTEES' REMUNERATION AND BENEFITS

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

Trustees' expenses

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

7.	STAFF COSTS

The average monthly number of employees during the year was as follows:

31.3.26

31.3.25

Voluntary Groups Sutherland

3

1

No employees received emoluments in excess of £60,000.

8.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

fund

funds

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

7,891

1,376

9,267

Charitable activities

General

60,141

12,219

72,360

Investment income

3,332

-

3,332

Other income

156,400

-

156,400

Total

227,764

13,595

241,359

EXPENDITURE ON

Charitable activities

General

58,870

13,595

72,465

NET INCOME

168,894

-

168,894

Transfers between funds

48,460

(48,460

)

-

Net movement in funds

217,354

(48,460

)

168,894

RECONCILIATION OF FUNDS

Total funds brought forward

188,537

48,460

236,997

TOTAL FUNDS CARRIED FORWARD

405,891

-

405,891

9.	TANGIBLE FIXED ASSETS

Office

equipment

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 April 2025 and 31 March 2026

16,066

16,434

32,500

DEPRECIATION

At 1 April 2025

14,589

15,116

29,705

Charge for year

304

319

623

At 31 March 2026

14,893

15,435

30,328

NET BOOK VALUE

At 31 March 2026

1,173

999

2,172

At 31 March 2025

1,477

1,318

2,795

10.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.26

31.3.25

£

£

Accrued expenses

749

749

11.	ACCRUALS AND DEFERRED INCOME

31.3.26

31.3.25

£

£

Accruals and deferred income

38,053

29,321

12.	MOVEMENT IN FUNDS

Net

movement

At

At 1.4.25

in funds

31.3.26

£

£

£

Unrestricted funds

General fund

405,891

36,462

442,353

TOTAL FUNDS

405,891

36,462

442,353

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

92,748

(56,286

)

36,462

Restricted funds

Restricted

30,393

(30,393

)

-

TOTAL FUNDS

123,141

(86,679

)

36,462

Comparatives for movement in funds

Net

Transfers

movement

between

At

At 1.4.24

in funds

funds

31.3.25

£

£

£

£

Unrestricted funds

General fund

188,537

168,894

48,460

405,891

Restricted funds

Property fund

48,460

-

(48,460

)

-

TOTAL FUNDS

236,997

168,894

-

405,891

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

227,764

(58,870

)

168,894

Restricted funds

Restricted

13,595

(13,595

)

-

TOTAL FUNDS

241,359

(72,465

)

168,894

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

Net

Transfers

movement

between

At

At 1.4.24

in funds

funds

31.3.26

£

£

£

£

Unrestricted funds

General fund

188,537

205,356

48,460

442,353

Restricted funds

Property fund

48,460

-

(48,460

)

-

TOTAL FUNDS

236,997

205,356

-

442,353

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

320,512

(115,156

)

205,356

Restricted funds

Restricted

43,988

(43,988

)

-

TOTAL FUNDS

364,500

(159,144

)

205,356

13.	RELATED PARTY DISCLOSURES

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