REGISTERED COMPANY NUMBER: SC347176 (Scotland)

REGISTERED CHARITY NUMBER: SC041920

Report of the Trustees and

Financial Statements for the Year Ended 31 December 2025

for

THE WEST HARRIS TRUST

Page

Report of the Trustees

1

to

5

Report of the Independent Auditors

6

to

9

Statement of Financial Activities

10

Balance Sheet

11

to

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

to

25

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 December 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 charity has been formed to benefit the crofting community of West Harris defined as those persons resident in the crofting townships of Borve (Harris), Horgabost & Seilebost, Luskentyre and Scaristavore or being tenants of crofts in any of the aforementioned crofting townships.

The main objectives of the charity are:-

- to advance rural regeneration of the crofting community of West Harris;

- to manage community land and associated assets for the benefit of the crofting community of West Harris and the public in general following principles of sustainable development, where sustainable development means development which meets the needs of the present without compromising the ability of future generations to meet their own needs;

- to advance the education of the crofting community of West Harris about its environment, culture, heritage and/or history;

- to advance environmental protection or improvement including preservation, and conservation of the natural environment, the promotion of sustainable development, the maintenance, improvement or provision of environmental amenities for the crofting community of West Harris and/or the preservation of buildings or sites of architectural, historic or other importance to the crofting community.

Significant activities

The significant activities during the year under review were:

- Bail' Ùr Project - Ongoing collaboration with partners to identify and review potential sites for developing more housing options in West Harris, including regular meetings and update reports

- Staffing - restructuring and recruitment across all departments, training and apprenticeship in place.

- Community Cafe - refining approaches to in-house hospitality at Talla na Mara

- Health & Safety - implemented a full H&S review and training programme

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.

STRATEGIC REPORT

Achievements and performance

Charitable activities

During the year, the charity:-

- Continued to administer, manage and maintain the West Harris estates;

- Continued to manage Talla na Mara including running the Cafe, Gallery and Gift Shop and campsite;

- Hosted business meetings, weddings, community lunches and musical events at Talla na Mara;

- Continued with the Bail Ùr Project to try and find suitable house sites.

- Continued to provide accessibility improvements adding a junior beach access wheelchair to existing adult chair.

- Continued to engage with supervisors in supporting a student undertaking a Collaborative Doctoral Awards (CDA) on West Harris' history, culture and heritage.

Internal and external factors

The charity is partially dependent upon the continuing support of public funding agencies to assist in the ongoing delivery of the aims and objectives of the organisation.

Financial review

Principal funding sources

The charity is dependent on grants, rental and estate income and fundraising to fund its operational costs. Apart from rental and estate income and fundraising, the principal funding sources for the charity during the year were grants administered by the Scottish Government's Investing in Communities Fund, the Outer Hebrides Community Led Local Development Fund and the Shared Prosperity Fund.

Investment policy and objectives

The charity's reserves are maintained in bank accounts as the current level of reserves are required to meet the trust'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 consider that the level of the free reserves in unrestricted funds at 31 December 2025, which equates to approximately six months operating expenditure, is sufficient to meet the charity's operational requirements given the ongoing assistance being received from public funding agencies.

During the year the charity's income exceeded expenditure resulting in net expenditure of £101,489 for the period (2024 - £110,791 net expenditure). This results in a decrease of £41,746 in unrestricted funds and a decrease of £59,743 in restricted funds. Unrestricted reserves carried forward to next year have decreased to £171,013.

The expenditure in restricted funds relates mainly to depreciation in connection with the Community Enterprise Centre project.

Future plans

The charity's plans for the forthcoming year include:-

- the ongoing management and development of the West Harris estates;

- the ongoing management and development of Talla na Mara as a community space to run the Cafe, Gallery and Gift Shop and campsite;

- work with agencies to develop further affordable housing in the area;

- continuing to work with UHI to help the PhD student in featuring West Harris.

- taking forward the energy efficiency plans put on hold in 2025.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Trust is a charitable company limited by guarantee, incorporated on 15 August 2008 and registered as a charity with effect from 24 November 2010. 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.

Recruitment and appointment of new trustees

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

Under the terms of the Memorandum and Articles of Association the Elected Directors are appointed by the ordinary members at the Annual General Meeting. One third of the Elected Directors must retire by rotation at each Annual General Meeting.

The Nominated Members of the charity are also entitled to appoint Nominated Directors to represent them on the board.

Organisational structure

The board consists of voluntary directors who manage the affairs of the charity through regular board meetings. The charity's management team who assist 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, including membership of Community Land Scotland and Development Trusts Association Scotland

Related parties

Pairc Niseaboist Power Limited was established in June 2016 to supply electricity to local houses. The company is a wholly owned subsidiary of the charity.

Talla na Mara Restaurant Limited was established in February 2023 to run the Talla na Mara Restaurant. The company is a wholly owned subsidiary of the charity.

Full details of the charity's subsidiaries are included in the notes to the financial statements.

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

SC347176 (Scotland)

Registered Charity number

SC041920

Registered office

Talla na Mara

Pairc Niseaboist

Horgabost

Isle of Harris

HS3 3AE

Trustees

D A Macdonald (resigned 14.4.25)

N Macdonald

R Macdonald

R Maclennan

N I Mackay (resigned 11.8.25)

M M N Mackenzie (appointed 24.2.25)

G Macleod

M McCuish (appointed 14.7.25)

M Munro

A Parry

I Mackay

R Maclennan (appointed 14.4.26)

Company Secretary

Senior Statutory Auditor

John E Moffat BA FCA

Auditors

Mann Judd Gordon Ltd

Chartered Accountants

& Statutory Auditors

26 Lewis Street

Stornoway

Isle of Lewis

HS1 2JF

Solicitors

Anderson Macarthur

Old Bank of Scotland Buildings

Stornoway

Isle of Lewis

HS1 2BG

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of The West Harris Trust 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) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

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.

AUDITORS

The auditors, Mann Judd Gordon Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 30 July 2026 and signed on the board's behalf by:

M M N Mackenzie - Trustee

Opinion

We have audited the financial statements of The West Harris Trust (the 'charitable company') for the year ended 31 December 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In our opinion the financial statements:

-	give a true and fair view of the state of the charitable company's affairs as at 31 December 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, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; 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:

Our approach was as follows:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant are those that relate to employment matters and those relating directly the preparation of the financial statements, that is FRS102, Charities SORP and the Companies Act 2006.The charity is also subject to data protection laws (GDPR).

We assessed the risks of material misstatement in respect of fraud as follows:

As part of our audit team discussion, we identified if any particular area was more susceptible to misstatement. A list of the known related parties was compiled along with an expectation of transactions between them. We then made fraud enquires of those charged with governance and confirmed our related party list.

Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above. We corroborated our enquiries of those charged with governance by a review of the board minutes to date, a review of the bank statements to date, a review of the service organisation's payroll files for the year and a review of legal fees charged in the year for any evidence of legal or regulatory issues. Our considerations at planning were corroborated and no further legal or regulatory issues were noted.

We considered the risk of fraud through management override and, in response, we incorporated testing of manual journal entries throughout the year into our audit approach . A review of the year of bank statements was undertaken, to identify any large or unusual transactions. No transactions outside the normal course of business were identified.

Given the size of the entity, segregation of duties is limited, so we designed our audit procedures to identify and to address any material misstatements arising from this. Appropriate approval controls were found to be in place.

As the parent charitable company of Pairc Niseaboist Power Ltd and Talla na Mara Restaurant Limited, we have considered any instance of non-compliance by the subsidiary companies and subsequent effect on the group. We are auditors for all entities within the group.

The engagement partner's assessment of whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations concluded that the overall risk was of fraud and misstatement was low and the experience of the audit team assigned was sufficient and no specialists were required. An appropriate level of materiality has been calculated in consideration of the inherent difficulty in detecting irregularities along with the perceived level of risk.

There are inherent limitations in the audit procedures described above that result in an 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 International Standards on Auditing (UK). The further removed non-compliance with laws and regulations is from the events and financial transactions in the financial statements, the less likely the auditor is to become aware of it or recognise non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment through forgery, collusion, omission or misrepresentation. The primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

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.

John E Moffat BA FCA (Senior Statutory Auditor)

for and on behalf of Mann Judd Gordon Ltd

Chartered Accountants

& Statutory Auditors

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

26 Lewis Street

Stornoway

Isle of Lewis

HS1 2JF

30 July 2026

31.12.25

31.12.24

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

2,035

-

2,035

2,907

Charitable activities

5

Charitable activities

200,113

76,829

276,942

288,223

Other trading activities

3

7,347

-

7,347

18,153

Investment income

4

725

-

725

1,319

Total

210,220

76,829

287,049

310,602

EXPENDITURE ON

Charitable activities

6

Charitable activities

246,623

141,915

388,538

422,393

NET INCOME/(EXPENDITURE)

(36,403

)

(65,086

)

(101,489

)

(111,791

)

Transfers between funds

19

(5,343

)

5,343

-

-

Net movement in funds

(41,746

)

(59,743

)

(101,489

)

(111,791

)

RECONCILIATION OF FUNDS

Total funds brought forward

212,759

1,920,680

2,133,439

2,245,230

TOTAL FUNDS CARRIED FORWARD

171,013

1,860,937

2,031,950

2,133,439

31.12.25

31.12.24

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

13

52,530

1,760,935

1,813,465

1,928,629

Investments

14

101

-

101

101

52,631

1,760,935

1,813,566

1,928,730

CURRENT ASSETS

Stocks

15

23,072

-

23,072

3,575

Debtors: amounts falling due within one year

16

73,642

-

73,642

104,973

Debtors: amounts falling due after more than one year

16

10,000

-

10,000

10,000

Cash at bank and in hand

35,889

100,001

135,890

99,872

142,603

100,001

242,604

218,420

CREDITORS

Amounts falling due within one year

17

(24,221

)

1

(24,220

)

(13,711

)

NET CURRENT ASSETS

118,382

100,002

218,384

204,709

TOTAL ASSETS LESS CURRENT LIABILITIES

171,013

1,860,937

2,031,950

2,133,439

NET ASSETS

171,013

1,860,937

2,031,950

2,133,439

FUNDS

19

Unrestricted funds:

General fund

161,350

199,930

Talla Na Mara

9,663

12,829

171,013

212,759

Restricted funds:

Capital fund

1,701,937

1,811,680

Estate Purchase fund

59,000

59,000

Building Reserve Fund

50,000

50,000

Housing Development

50,000

-

1,860,937

1,920,680

TOTAL FUNDS

2,031,950

2,133,439

The financial statements were approved by the Board of Trustees and authorised for issue on 30 July 2026 and were signed on its behalf by:

M M N Mackenzie - Trustee

R Macdonald - Trustee

Cash flows from operating activities

Cash generated from operations

1

42,173

(25,727

)

Interest paid

(558

)

-

Finance costs paid

(3,140

)

(2,341

)

Net cash provided by/(used in) operating activities

38,475

(28,068

)

Cash flows from investing activities

Purchase of tangible fixed assets

(2,420

)

(1,123

)

Interest received

725

1,319

Net cash (used in)/provided by investing activities

(1,695

)

196

Cash flows from financing activities

Loan repayments in year

(762

)

(1,320

)

Net cash used in financing activities

(762

)

(1,320

)

Change in cash and cash equivalents in the reporting period

36,018

(29,192

)

Cash and cash equivalents at the beginning of the reporting period

99,872

129,064

Cash and cash equivalents at the end of the reporting period

135,890

99,872

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

31.12.25

31.12.24

£

£

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

(101,489

)

(111,791

)

Adjustments for:

Depreciation charges

117,582

119,238

Interest received

(725

)

(1,319

)

Interest paid

558

-

Finance costs

3,140

2,341

Increase in stocks

(19,497

)

(3,575

)

Decrease/(increase) in debtors

31,333

(2,502

)

Increase/(decrease) in creditors

11,271

(28,119

)

Net cash provided by/(used in) operations

42,173

(25,727

)

2.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

99,872

36,018

135,890

99,872

36,018

135,890

Debt

Debts falling due within 1 year

(762

)

762

-

(762

)

762

-

Total

99,110

36,780

135,890

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, with the exception of investments which are included at market value.

The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest £1.

Going Concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

Preparation of consolidated financial statements

The financial statements contain information about The West Harris Trust as an individual charity and do not contain consolidated financial information as the parent of a group.

Critical accounting judgements and key sources of estimation uncertainty

Fixed asset net book value and depreciation charges are the areas of the accounts which are affected by significant judgements and estimates. The directors exercise judgement in determining both the useful economic life and the likely residual value of the company's assets. This judgement affects the rates of and charge for depreciation in the accounts for the year. It also therefore affects the net book value of the assets in the balance sheet.

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.

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.

Land

-

not provided

Estate improvements

-

10% depreciation on cost

Buildings

-

4% depreciation on cost

Plant and machinery

-

10% depreciation on cost

Fixtures and fittings

-

20% depreciation on cost

Office equipment

-

25% depreciation 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.

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

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 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.

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.

Investments

Fixed asset investments in group undertakings are stated at cost less accumulated provision.

Debtors and creditors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered.

Prepayments are valued at the amount prepaid net of any trade discounts due.

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

2.	DONATIONS AND LEGACIES

31.12.25

31.12.24

£

£

Donations

2,035

2,907

3.	OTHER TRADING ACTIVITIES

31.12.25

31.12.24

£

£

Electricity generation

7,347

18,153

4.	INVESTMENT INCOME

31.12.25

31.12.24

£

£

Interest received

725

1,319

All investment income arises from assets held within the UK.

5.	INCOME FROM CHARITABLE ACTIVITIES

31.12.25

31.12.24

Activity

£

£

Rental income

Charitable activities

123,817

159,480

Land sales

Charitable activities

31,877

33,417

Grants

Charitable activities

76,829

25,840

Fundraising

Charitable activities

36,190

38,647

Management charges

Charitable activities

1,308

1,130

Events Income

Charitable activities

4,850

4,622

Share of running costs

Charitable activities

(6,600

)

19,800

Electric Car Charger

Charitable activities

-

287

Employment Allowance

Charitable activities

8,671

5,000

276,942

288,223

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

31.12.25

31.12.24

£

£

Highlands and Islands Enterprise

6,824

-

Comhairle nan Eilean Siar

50,000

-

The Scottish Government

10,680

24,475

Outer Hebrides Community Led Local Development

9,325

1,365

76,829

25,840

6.	CHARITABLE ACTIVITIES COSTS

Direct

Support

Costs (see

costs (see

note 7)

note 8)

Totals

£

£

£

Charitable activities

301,930

86,608

388,538

7.	DIRECT COSTS OF CHARITABLE ACTIVITIES

31.12.25

31.12.24

£

£

Staff costs

121,231

117,346

Events

8,704

35,282

Aspiring Communities Project

-

258

Computer Expenses

-

923

Repairs and renewals

12,910

16,359

Legal and professional fees

40,738

46,321

Campsite

765

10,156

Depreciation

117,582

119,238

301,930

345,883

8.	SUPPORT COSTS

Governance

Premises

Administration

costs

Totals

£

£

£

£

Charitable activities

49,397

32,564

4,647

86,608

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

31.12.25

31.12.24

Charitable

Total

activities

activities

£

£

Light and heat

36,690

29,078

Telephone

4,205

4,037

Rates and water

5,338

3,623

Cleaning

3,164

1,699

Rent

-

7,950

Insurance

19,470

16,429

Travel expenses

1,135

1,433

Training and conferences

1,272

1,397

Postage and stationery

1,966

1,756

Advertising

1,073

638

Memberships and subscriptions

2,275

1,191

Sundry expenses

1,675

989

Finance costs

3,698

2,341

Accountancy and legal fees

4,647

3,949

86,608

76,510