The trustees present their annual report and financial statements for the year ended 31 March 2026.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "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)".
"Wester Loch Ewe Trust (WLET)" is a Scottish Charitable Organisation monitored by the Office of the Scottish Charities' Regulator and a Company Limited by Guarantee The aims and objectives of WLET are:
To advance community development, including rural regeneration within the Community;
To advance education for all ages in the Community, and the public at large, with the object of improving the conditions of life of the Community;
To provide, or assist in providing, facilities and/or activities for those in need in the Community by reason of age, isolation, ill-health, disability, financial hardship or other disadvantage;
To provide, or assist in providing, facilities and/or activities, for recreation and for the advancement of the arts, culture, history and heritage to be available to members of the Community and the public at large, with the object of improving the conditions of life of the Community; and
To advance conservation and preservation of the natural environment, and of buildings and sites of architectural, historic, cultural or other importance to the Community.
It was a busy year for the Old Schoolhouse Tearoom - the 12th year of the 'drop in' in its traditional place on Tuesday afternoons, continuing use by the Wester Loch Ewe Community Council for alternate WLECC monthly meetings, private lets for birthday celebrations, candle-making, ceramic painting, art class, open mic nights, summer pizzas and winter Tex-Mex evenings and Christmas Buffet with Ewe Brew, our local micro-brewery.
Consultation and engagement continued this year as we looked towards Phase 2 of the development of the old school, including the land purchase project which will allow for the building of much needed affordable housing as well as other projects which will benefit the Wester Loch Ewe community.
The Old Schoolhouse Tearoom continued throughout the winter offering a warm space and friendly faces for all who came along to Tuesdays and Wednesdays.
The Old Schoolhouse Art Class continued to meet each Tuesday morning to the enjoyment of all concerned.
Lunch was provided for those attending the Arctic Convoy's Sasan Remembrance Service in November and our New Year get together was well attended as usual.
During Wester Ross Biospheres Dark Skies month we were privileged to welcome back two speakers; the first speaker represented the Royal Astronomical Society and delivered a talk which connected space with art and our second speaker from the UK Space Agency led a fascinating talk on space as an invisible utility.
We continue to manage the Highland Council Comfort Scheme for Poolewe Public Toilets and thanks to a strong team of volunteers we have successfully kept the facilities clean, tidy and open all year round.
The Trustees' policy is to retain sufficient funds to cover unexpected expenditure and to meet ongoing commitments for seven to nine months. As part of our effort to protect our reserves and put them to good use, these are now in a separate interest-earning bank account.
The Trustees continue to work with the project manager and Community Enterprise Scotland to bring the existing business plan up to date, to ensure it still meets with the needs of the community, before progressing to bring Phase 2 of the renovation project to fruition.
With Wester Loch Ewe Community Council, we are exploring the purchase and development of land in Poolewe which would allow the building of some affordable housing, the provision of an emergency helipad, community woodland, small camper van aire, and the retention of the existing grazing land. At the time of writing, we have attained Scottish Land Fund Stage (SLF) 1 and are due to submit our application for SLF2 at the start of July 2026.
We were successful in our application for funding to engage a Development Manager for a 2 year period and we welcomed our new manager who started in post in February 2026.
The company, which is a recognised charity in Scotland, is registered as a charitable company limited by guarantee and was set up on 17th March 2015.
The Articles of Association of the company were modified on 29th April 2022 by a Special Resolution at the Annual General Meeting (AGM) of the company to allow for virtual or hybrid attendance at meetings. These are based on advice given by the Office of the Scottish Charity Regulator (OSCR) to the sector.
The Trustees are responsible for the management of the company, and they are appointed under the terms of the Articles of Association amended in February 2021.There must be no fewer than 5 and no more than 12 Directors with the majority being elected directors. There are, at the time of writing, 6 elected Directors who form the Board and who meet regularly to direct and manage the affairs, property and financial position of WLET.
Elected Directors are nominated from the Ordinary Members. Each Elected Director is elected by a vote of the Ordinary Members.
Members of the Company include:
Subscribers (being those Ordinary Members who signed the Original Memorandum of Association);
Ordinary Members who are individuals aged 16 years and over who
(a) are ordinarily resident in the Community; and
(b) are entitled to vote at a local government election in a polling district that includes the Community or part of it; and
(c) who support the Purposes. Ordinary Members are entitled to stand for election to the Board and to vote at a General Meeting or stand proxy for another member;
Associate Members: those individuals who are not ordinarily resident in the Community and those organisations wherever located that support the Purposes. Associate Members are neither eligible to stand for election to the Board nor to vote at any General Meeting.
Junior Members: those individuals who are aged between 12 and 15 years who support the Purposes. Junior Members are neither eligible to stand for election to the Board nor to vote at any general meeting.
The Board of Director Trustees directs and manages the affairs, property and financial position of the Company. Each Trustee has one vote in Trustees Meetings, held approximately every 4 weeks but during the pandemic twice monthly by telephone. In the event of an equal number of votes for and against any resolution at a Board Meeting, the chair of the meeting shall have a casting vote as well as a deliberative vote.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
The trustees, who are also the directors of Wester Loch Ewe Trust for the purpose of company law, are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these 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 UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees report was approved by the Board of Trustees.
I report on the financial statements of the charity for the year ended 31 March 2026, which are set out on pages 5 to 16.
It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and to state whether particular matters have come to my attention.
My examination is 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 financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from the 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 financial statements.
In the course of 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 Charities and Trustee Investment (Scotland) Act 2005 and Regulation 4 of the Charities Accounts (Scotland) Regulations 2006, and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the Charities Accounts (Scotland) Regulations 2006
have not been met, or
2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Wester Loch Ewe Trust is a private company limited by guarantee incorporated in Scotland. The registered office is 9 Coast, Inverasdale, Poolewe, Achnasheen, IV22 2LR.
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "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)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a statement of cash flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and Buildings are recorded at purchase costs and are not depreciated. The Old School building is valued at approx £1,725,000 for insurance purposes.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
The average monthly number of employees during the year was:
Collectively the key management personnel remuneration during the year was £2,788.
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
Inverasdale School Development Fund:
The fund is to allow development of the building, Phase 1 renovation and extension has been completed. Phase 2 plans have been drawn up and funding is now being searched for.
Poolewe Land Project
Exploring the purchase and development of land in Poolewe which would allow the building of some affordable housing, the provision of an emergency helipad, community woodland, small camper van aire and the retention of the existing grazing land for which we have attained Scottish Land Fund Stage 1.
DTAS Recovery & Resilience Programme Award
Funding for Employment of a full time Development Manager for two years - staff costs, Programme Delivery, Equipment and Materials and a contribution towards overhead costs.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
There were no disclosable related party transactions during the year (2025 - none).
The company is a charitable company limited by guarantee and has no share capital and therefore no single party controls the company.