Voluntary Groups Sutherland - Charities report - 19.1

REGISTERED COMPANY NUMBER: SC154183 (Scotland)

REGISTERED CHARITY NUMBER: SC001528

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 March 2019

for

Voluntary Groups Sutherland

Voluntary Groups Sutherland

Contents of the Financial Statements

for the Year Ended 31 March 2019

Page

Chairman's Report

1 to 2

Report of the Trustees

3 to 5

Independent Examiner's Report

6

Statement of Financial Activities

7

Balance Sheet

8 to 9

Notes to the Financial Statements

10 to 16

Voluntary Groups Sutherland

Chairman's Report

for the Year Ended 31 March 2019

In the summer we learned the funding model for delivery of services across Sutherland was to

change. The Highland Third Sector Interface decided to align the contract with the Sutherland

Community Partnership area - the two main changes resulting from that were the reduction of

delivery agents to one organisation and an overall cut in budget by 37%. This change affected both

Voluntary Groups Sutherland and CVS North.

CVS North and ourselves worked together to come up with a practical solution and it was agreed

for us to change our name from Voluntary Groups - East Sutherland to Voluntary Groups

Sutherland (VGS) and change our operational area to cover the whole of Sutherland. We reviewed

our Memorandum and Articles and updated dated them to the Companies Act 2006 model - all

these changes approved by our membership on the 31st January 2019. The task ahead, to cover

the whole area on the reduced budget will be a challenge but one which we are going to work hard

to embrace.

Membership of VGS remains high. These groups reflect the breadth and diversity of voluntary

sector activity in Sutherland, set up to meet local needs.

We provide office accommodation for three voluntary sector organisations: Caithness and

Sutherland Women's Aid (CASWA), Crossroads Caring Scotland, and the RSPB. We continue to

make available the meeting room and hire out digital equipment.

We strive to communicate with the sector made much easier with social media and email.

E-bulletins are sent out on a weekly basis to inform groups of, for example: conferences, events,

training opportunities, changes in legislation, funding opportunities and consultations.

We continue to offer the support and advice on such topics as:- fundraising, constitutions - whether

amending or setting up a new group including SCIOs, OSCR; Governance advice; Advice on social

enterprise and sustainability. Capacity building of the voluntary sector through training and support

is an ongoing function. We continue to assist, inform or signpost as appropriate in order to help the

sector to grow, and to develop good core skills to ensure its robustness and sustainability. Helping

groups keep abreast of new regulations and legislation, such as employment, company law,

charities, health and safety, human rights, equalities and disclosures.

Independent Financial Examinations of accounts for small unincorporated charities for OSCR

compliance continues to be a well-used service. We assist over 45 groups in our area and find

there is an increasing demand for this service. We have recruited an additional volunteer to assist

with this.

We also continue to provide a Disclosures service acting as an Intermediary Body to allow groups

to access disclosure information on prospective employees/volunteers. We are currently

supporting 35 groups to access this information and carried out over 70 checks in the year through

the Protection of Vulnerable Groups Scheme.

VGS attends the Sutherland Community Partnership and some of its sub-groups which brings

together public agencies, third sector organisations and other individuals to work collaboratively

with the people of Sutherland to deliver better outcomes. We co-ordinated on behalf of the

Partnership another Senior Safe and Well Highlander Event - a day packed full of useful

presentations and advice to assist older people stay safe and well at home.

As part of our Volunteer Promotion work we attended various shows/fêtes and games around our

area. We gave presentations to various youth organisations promoting the youth volunteering and

the Saltire Award and held our popular VOSCARS (Volunteer Awards) Evening.

We continue to act as co-ordinator for The Gordonbush Project which runs a local Apprenticeship

Scheme and Work Placement Scheme. The scheme is currently supporting 13 businesses and

their apprentices and a total of 17 so far. The Gordonbush Project was successful in securing

funding for a Work Placement Project and aims to help break the barriers for businesses

interested in taking on a youngster and support 20 youngsters gain valuable work experience.

Our main source of funding comes from the Scottish Government via the Highland Third Sector

Interface and focus of activity is now linked to outcomes encouraging and supporting:-

- Active Citizenship

- Quality within the Third Sector

- Social Economy

- Community Empowerment and Co-production

We wish to thank the Scottish Government via the HTSI, for continued financial assistance which

has enabled VGS to support third sector activity in Sutherland.

Voluntary Groups Sutherland

Report of the Trustees

for the Year Ended 31 March 2019

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 2019.

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 2015).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objects of the charity are:

To promote any charitable purposes for the benefit of the inhabitants of East and Central

Sutherland, and, in particular, the advancement of education, the furtherance of health, and the

relief of poverty, sickness and distress without distinction of religious, political, or other opinions.

To promote and organise co-operation in the achievement of the above purposes and to that end

bring together in council representatives of the statutory authorities and voluntary organisations

engaged in the furtherance of the above purposes or any of them within East and Central

Sutherland.

To promote voluntary effort.

To take and organise action for the furtherance and improvement of education and skills, transport,

health, employment, arts and crafts, information, social welfare and consumer protection or other

issues which are relevant to the quality of life within the said communities.

The company undertakes grant funded research and development projects from time-to-time.

Each of these activities is restricted as to its income and expenditure, both capital and revenue.

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 3

months of general expenditure. It is the view of the directors that these reserves are adequate for

the company to continue the current activities in the event of a significant drop in funding.

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

Alba

Main Street

GOLSPIE

Sutherland

KW10 6TG

Trustees

M J Brett Young, DL

W P Faassen-de-heer

R G Gale

Vice Chairman

- resigned 28.11.18

Mrs C Gibson

D Hannah

Vice Chairman

- resigned 11.10.18

Ms D J Mackay

C I Ritchie

W J Ross

Chairman

Mrs F M E Thomson, DL

Cllr L Munro

- appointed 1.4.19

Company Secretary

Mrs C J Ross

Independent examiner

Marcus D. MacIver

CA (ICAS)

Mackay & Co

Chartered Accountants

Main Street

Golspie

Sutherland

KW10 6RH

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 21 June 2019 and signed on its behalf by:

Mrs C J Ross - Secretary

Independent Examiner's Report to the Trustees of

Voluntary Groups Sutherland

I report on the accounts for the year ended 31 March 2019 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 (as amended). 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 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 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

CA (ICAS)

Mackay & Co

Chartered Accountants

Main Street

Golspie

Sutherland

KW10 6RH

21 June 2019

Voluntary Groups Sutherland

Statement of Financial Activities

for the Year Ended 31 March 2019

31.3.19

31.3.18

Unrestricted fund

Restricted funds

Total funds

Total funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

16,994

-

16,994

16,414

Charitable activities

3

General

51,142

14,149

65,291

55,592

Investment income

2

6,075

37

6,112

5,871

Total

74,211

14,186

88,397

77,877

EXPENDITURE ON

Charitable activities

General

60,677

16,088

76,765

72,162

NET INCOME/(EXPENDITURE)

13,534

(1,902

)

11,632

5,715

RECONCILIATION OF FUNDS

Total funds brought forward

116,150

65,220

181,370

175,655

TOTAL FUNDS CARRIED FORWARD

129,684

63,318

193,002

181,370

Voluntary Groups Sutherland

Balance Sheet

At 31 March 2019

31.3.19

31.3.18

Unrestricted fund

Restricted funds

Total funds

Total funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

9

1,672

58,155

59,827

62,186

CURRENT ASSETS

Cash at bank and in hand

152,907

5,163

158,070

124,544

CREDITORS

Amounts falling due within one year

10

(750

)

-

(750

)

(750

)

NET CURRENT ASSETS

152,157

5,163

157,320

123,794

TOTAL ASSETS LESS CURRENT LIABILITIES

153,829

63,318

217,147

185,980

ACCRUALS AND DEFERRED INCOME

11

(24,145

)

-

(24,145

)

(4,610

)

NET ASSETS

129,684

63,318

193,002

181,370

FUNDS

12

Unrestricted funds

129,684

116,150

Restricted funds:

D A Lovell Trust Fund

5,163

5,126

Property fund

58,155

60,094

63,318

65,220

TOTAL FUNDS

193,002

181,370

The charitable company is entitled to exemption from audit under

Section 477 of the Companies Act 2006 for the year ended 31 March 2019.

The members have not required the company to obtain an audit of its financial statements for the

year ended 31 March 2019 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 special provisions of Part

15 of the Companies Act 2006 relating to charitable small companies.

The financial statements were approved by the Board of Trustees on 21 June 2019 and were signed on its behalf by:

M J Brett Young, DL-Trustee

Voluntary Groups Sutherland

Notes to the Financial Statements

for the Year Ended 31 March 2019

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 2015)', 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.

Freehold property

- in accordance with the property

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

31.3.19

31.3.18

£

£

Rents received

6,010

5,822

Deposit account interest

102

49

6,112

5,871

3.	INCOME FROM CHARITABLE ACTIVITIES

31.3.19

31.3.18

Activity

£

£

Grants

General

65,291

55,592

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

31.3.19

31.3.18

£

£

Scottish Government

52,582

51,854

Highland Council - East Sutherland Ward Discretionary Budget

-

1,000

Gordonbush Windfarm - Apprentice Scheme

5,000

6,008

SSE

3,099

-

VOSCARS

1,220

-

CSMDF

3,390

(3,270

)

65,291

55,592

4.	SUPPORT COSTS

Governance costs

£

General

1,230

5.	NET INCOME/(EXPENDITURE)

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

31.3.19

31.3.18

£

£

Depreciation - owned assets

2,359

2,475

6.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2019

nor for the year ended 31 March 2018.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2019 nor for the year

ended 31 March 2018.

7.	STAFF COSTS

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

31.3.19

31.3.18

Voluntary Groups Sutherland

4

4

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

8.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted fund

Restricted funds

Total funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

16,414

-

16,414

Charitable activities

General

51,854

3,738

55,592

Investment income

5,847

24

5,871

Total

74,115

3,762

77,877

EXPENDITURE ON

Charitable activities

General

63,215

8,947

72,162

Total

63,215

8,947

72,162

NET INCOME/(EXPENDITURE)

10,900

(5,185

)

5,715

Transfers between funds

170

(170

)

-

Net movement in funds

11,070

(5,355

)

5,715

RECONCILIATION OF FUNDS

Total funds brought forward

105,080

70,575

175,655

TOTAL FUNDS CARRIED FORWARD

116,150

65,220

181,370

9.	TANGIBLE FIXED ASSETS

Freehold property

Office equipment and fittings

Computer equipment

Totals

£

£

£

£

COST

At 1 April 2018 and 31 March 2019

97,195

12,119

10,913

120,227

DEPRECIATION

At 1 April 2018

36,931

10,800

10,310

58,041

Charge for year

1,944

264

151

2,359

At 31 March 2019

38,875

11,064

10,461

60,400

NET BOOK VALUE

At 31 March 2019

58,320

1,055

452

59,827

At 31 March 2018

60,264

1,319

603

62,186

10.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.19

31.3.18

£

£

Accrued expenses

750

750

11.	ACCRUALS AND DEFERRED INCOME

31.3.19

31.3.18

£

£

Accruals and deferred income

24,145

4,610

12.	MOVEMENT IN FUNDS

At 1.4.18

Net movement in funds

At 31.3.19

£

£

£

Unrestricted funds

General fund

116,150

13,534

129,684

Restricted funds

D A Lovell Trust Fund

5,126

37

5,163

Property fund

60,094

(1,939

)

58,155

65,220

(1,902

)

63,318

TOTAL FUNDS

181,370

11,632

193,002

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

Incoming resources

Resources expended

Movement in funds

£

£

£

Unrestricted funds

General fund

74,211

(60,677

)

13,534

Restricted funds

Restricted

14,149

(14,149

)

-

D A Lovell Trust Fund

37

-

37

Property fund

-

(1,939

)

(1,939

)

14,186

(16,088

)

(1,902

)

TOTAL FUNDS

88,397

(76,765

)

11,632

Comparatives for movement in funds

At 1.4.17

Net movement in funds

Transfers between funds

At 31.3.18

£

£

£

£

Unrestricted Funds

General fund

105,080

10,900

170

116,150

Restricted Funds

Restricted

3,270

(3,270

)

-

-

D A Lovell Trust Fund

5,102

24

-

5,126

Property fund

62,203

(1,939

)

(170

)

60,094

70,575

(5,185

)

(170

)

65,220

TOTAL FUNDS

175,655

5,715

-

181,370

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

Incoming resources

Resources expended

Movement in funds

£

£

£

Unrestricted funds

General fund

74,115

(63,215

)

10,900

Restricted funds

Restricted

3,738

(7,008

)

(3,270

)

D A Lovell Trust Fund

24

-

24

Property fund

-

(1,939

)

(1,939

)

3,762

(8,947

)

(5,185

)

TOTAL FUNDS

77,877

(72,162

)

5,715