The Breasclete Community Association - Charities report - 19.1

REGISTERED COMPANY NUMBER: SC225858 (Scotland)

REGISTERED CHARITY NUMBER: 010214

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED

30 NOVEMBER 2018

FOR

THE BREASCLETE COMMUNITY ASSOCIATION

THE BREASCLETE COMMUNITY ASSOCIATION

CONTENTS OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2018

Page

Report of the Trustees

1 to 4

Independent Examiner's Report

5

Statement of Financial Activities

6

Balance Sheet

7

Notes to the Financial Statements

8 to 15

THE BREASCLETE COMMUNITY ASSOCIATION

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 30 NOVEMBER 2018

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 30 November 2018. 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 main objectives of the charity are:-

- to promote the benefit of the inhabitants of Breasclete and its environs by associating with the local statutory

authorities, voluntary organisations and inhabitants in a common effort to advance education, to provide facilities, in the

interest of social welfare for recreation and other leisure-time occupation so that their conditions of life may be improved;

and

- to secure the establishment, maintenance and management of a Community Centre for activities promoted by the

company and its members in furtherance of the above objects or any of them.

Significant activities

During the year, the charity undertook the planning and progressing of remodelling the Community centre Upstairs to fit

a new mini Kitchen and disabled toilet facility with funding secured from the Big lottery.

Also a new Flannen Isles Memorial Monument was constructed and a related Flannen Isles Exhibition was established

based within the community centre and involved the local primary school. Funding was secured from Bord na Gaidhlig,

Sgioba na Gaidhlig, Local Council Ward Fund and a BCA contribution with both projects successfully completed in

December 2017.

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 in establishing, maintaining and managing the Breasclete Community

Centre.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

During the year, the charity:-

- continued to manage and maintain the community centre and generate rental income from the hire of the centre's club

room, games room, main hall and kitchen facilities. The main source of rental income is from the local authority

Comhairle nan Eilean Siar in respect of the hire of the community centre to Breasclete School;

- continued to manage a new Flannen Isles Exhibition ;

- remodelling of the Community Centre to add a new mini Kitchen and Disabled Toilet upstairs;

- War Memorial lettering renewal

- organised and staged several successful community events including the Association's annual New Year Party and a

Quiz Night;

- held a Hebridean Celtic Festival event at the community centre in July 2018;

- successfully planned and held four wedding receptions at the community centre;

- produced and distributed the annual Cuimhnich magazine

- produced and distributed the Association's newsletter highlighting past and future activities and events;

- continued to manage and maintain a community website and facebook page which highlights the Association's activities

together with the activities of related community organisations.

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, donations, rental income and events income to fund its operational costs. Full details

of the charity's principal funding sources are included in the notes to the financial statements.

Investment policy and objectives

The charity's reserves are maintained in bank accounts as the current level of reserves are required to meet the

Association'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 free reserves at 30 November 2018, which equates to four months

operating expenditure, is sufficient to meet the charity's operational requirements given the ongoing rental and events

income being received.

During the year the charity's outgoing resources exceeded incoming resources resulting in net expenditure of £66,188 for

the period (2017 - net income of £1,218). This represents a decrease of £27,159 in unrestricted funds and a decrease of

£39,029 in restricted funds. Unrestricted reserves has as a result decreased to £6,697. During the year funds were

transferred of £309 from unrestricted to restricted reserves to assist with meeting the costs of the Flannen Isles Memorial

Project.

The decrease in restricted funds relates mainly to capital grants received during the year in connection with the Flannen

Isles project less the depreciation charge for the year charged to restricted funds in respect of the community centre,

equipment, fixtures and fittings. The restricted Community Centre and Equipment funds represent the funds raised to

assist with the building of the community centre and the purchase of equipment, fixtures and fittings and are utilised to

fund the future depreciation of the capital expenditure.

FUTURE PLANS

The charity's main objectives for the forthcoming year include:-

- the ongoing management, maintenance and development of the community centre which will include the planning and

preparation for five wedding receptions scheduled to be held at the centre during 2019;

- continuing to organise and stage fundraising and community events at the community centre including the staging of a

concert as part of the 2019 Hebridean Celtic Festival;

- purchasing of additional equipment for the new play area/eco garden;

- creation of a new football pitch/ grassed playarea

- creating a new boat slipway.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Association is a charitable company limited by guarantee, incorporated on 30 November 2001 and registered as a

charity with effect from 30 November 2001. 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 purpose of charity law.

Under the terms of the Memorandum and Articles of Association the Elected Directors are appointed by all the members

at the Annual General Meeting. The Elected Directors retire annually at each Annual General Meeting but are eligible for

re-election.

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

The first Nominated Members are Croileagan Bhreascleit, Breasclete Junior Youth Club, Breasclete Senior Youth Club,

Breasclete Campaigners, Stradagan Bhreascleit, Breasclete School Board, Comunn Eachdraidh Loch Rog an Ear,

Breasclete Grazings Committee, Callanish Grazings Committee, Garynahine Grazings Committee, Linshader Grazings

Committee and Lochganvich Grazings Committee.

Organisational structure

The board consists of voluntary directors who manage the affairs of the charity through regular board meetings. The

charity has reviewed its internal operational structure to assist in the effective management of the organisation. The

board members are heavily involved in the day to day operations of the charity.

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.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

SC225858 (Scotland)

Registered Charity number

010214

Registered office

Breasclete Community Centre

Breasclete

Isle of Lewis

HS2 9ED

Trustees

K J Maclennan

C M Macaulay

- resigned 5.12.18

M Mackay

A Smith

A A Mackenzie

C M M Maclennan

E Macarthur

N K Macdonald

L Macdonald

C Stubbington

N Macdonald

G M Morrison

J Smith

Company Secretary

C Falknerflint

Independent examiner

Calum Macdonald

Chartered Accountant/ICAS

CIB Services

Chartered Accountants

63 Kenneth Street

Stornoway

Isle of Lewis

Western Isles

HS1 2DS

Bankers

Royal Bank of Scotland

17 North Beach Street

Stornoway

Isle of Lewis

HS1 2XH

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 3 July 2019 and signed on its behalf by:

J Smith - Trustee

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF

THE BREASCLETE COMMUNITY ASSOCIATION

I report on the accounts for the year ended 30 November 2018 set out on pages six to fifteen.

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.

Calum Macdonald

Chartered Accountant/ICAS

CIB Services

Chartered Accountants

63 Kenneth Street

Stornoway

Isle of Lewis

Western Isles

HS1 2DS

3 July 2019

THE BREASCLETE COMMUNITY ASSOCIATION

STATEMENT OF FINANCIAL ACTIVITIES

(INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 30 NOVEMBER 2018

30.11.18

30.11.17

Unrestricted funds

Restricted funds

Total funds

Total funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

903

-

903

170

Charitable activities

3

Charitable expenditure

43,312

17,304

60,616

80,784

Total

44,215

17,304

61,519

80,954

EXPENDITURE ON

Charitable activities

4

Charitable expenditure

71,065

56,642

127,707

79,736

NET INCOME/(EXPENDITURE)

(26,850

)

(39,338

)

(66,188

)

1,218

Transfers between funds

12

(309

)

309

-

-

Net movement in funds

(27,159

)

(39,029

)

(66,188

)

1,218

RECONCILIATION OF FUNDS

Total funds brought forward

33,856

749,838

783,694

782,476

TOTAL FUNDS CARRIED FORWARD

6,697

710,809

717,506

783,694

THE BREASCLETE COMMUNITY ASSOCIATION

BALANCE SHEET

AT 30 NOVEMBER 2018

30.11.18

30.11.17

Notes

£

£

FIXED ASSETS

Tangible assets

8

674,882

708,705

CURRENT ASSETS

Debtors

9

2,102

2,099

Cash at bank

41,398

73,742

43,500

75,841

CREDITORS

Amounts falling due within one year

10

(876

)

(852

)

NET CURRENT ASSETS

42,624

74,989

TOTAL ASSETS LESS CURRENT LIABILITIES

717,506

783,694

NET ASSETS

717,506

783,694

FUNDS

12

Unrestricted funds

6,697

33,856

Restricted funds

710,809

749,838

TOTAL FUNDS

717,506

783,694

The charitable company is entitled to exemption from audit under

Section 477 of the Companies Act 2006 for the year ended 30 November 2018.

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

30 November 2018 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 3 July 2019 and were signed on its behalf by:

J Smith -Trustee

THE BREASCLETE COMMUNITY ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2018

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.

These accounts are prepared in pound sterling which is the functional currency of the charity and amounts are

rounded to the nearest £.

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.

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.

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.

Buildings

- 2% on cost

Playarea

- 10% on cost

Fixtures and fittings

- 20% 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.

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.

2.	DONATIONS AND LEGACIES

30.11.18

30.11.17

£

£

Donations

903

170

3.	INCOME FROM CHARITABLE ACTIVITIES

30.11.18

30.11.17

Activity

£

£

Rental Income

Charitable expenditure

12,691

12,530

Hall Hires

Charitable expenditure

58

2,063

Grants

Charitable expenditure

18,004

50,493

Events

Charitable expenditure

29,153

13,928

Gym Membership Fees

Charitable expenditure

710

1,770

60,616

80,784

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

30.11.18

30.11.17

£

£

Comhairle nan Eilean Siar

700

3,900

Big Lottery Fund - Investing in Communities

-

44,193

Bord na Gaidhlig

600

2,400

National Lighthouse Board

5,000

-

Breasclete Community Council

11,704

-

18,004

50,493

4.	CHARITABLE ACTIVITIES COSTS

Direct costs

Support costs

Totals

£

£

£

Charitable expenditure

126,831

876

127,707

5.	NET INCOME/(EXPENDITURE)

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

30.11.18

30.11.17

£

£

Depreciation - owned assets

34,654

34,173

6.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 30 November 2018 nor for the year

ended 30 November 2017.

Trustees' expenses

There were no trustees' expenses paid for the year ended 30 November 2018 nor for the year ended

30 November 2017.

7.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted funds

Restricted funds

Total funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

170

-

170

Charitable activities

Charitable expenditure

31,691

49,093

80,784

Total

31,861

49,093

80,954

EXPENDITURE ON

Charitable activities

Charitable expenditure

45,607

34,129

79,736

Total

45,607

34,129

79,736

NET INCOME/(EXPENDITURE)

(13,746

)

14,964

1,218

RECONCILIATION OF FUNDS

Total funds brought forward

47,602

734,874

782,476

TOTAL FUNDS CARRIED FORWARD

33,856

749,838

783,694

8.	TANGIBLE FIXED ASSETS

Buildings

Playarea

Fixtures and fittings

Computer equipment

Totals

£

£

£

£

£

COST

At 1 December 2017

733,763

181,530

160,843

-

1,076,136

Additions

-

-

-

831

831

At 30 November 2018

733,763

181,530

160,843

831

1,076,967

DEPRECIATION

At 1 December 2017

184,415

27,231

155,785

-

367,431

Charge for year

14,674

18,154

1,597

229

34,654

At 30 November 2018

199,089

45,385

157,382

229

402,085

NET BOOK VALUE

At 30 November 2018

534,674

136,145

3,461

602

674,882

At 30 November 2017

549,348

154,299

5,058

-

708,705

9.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.11.18

30.11.17

£

£

Other debtors

2,000

2,000

Prepayments and accrued income

102

99

2,102

2,099

10.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.11.18

30.11.17

£

£

Accrued expenses

876

852

11.	ANALYSIS OF NET ASSETS BETWEEN FUNDS

30.11.18

30.11.17

Unrestricted funds

Restricted funds

Total funds

Total funds

£

£

£

£

Fixed assets

5,189

669,693

674,882

708,705

Current assets

2,384

41,116

43,500

75,841

Current liabilities

(876

)

-

(876

)

(852

)

6,697

710,809

717,506

783,694

12.	MOVEMENT IN FUNDS

At 1.12.17

Net movement in funds

Transfers between funds

At 30.11.18

£

£

£

£

Unrestricted funds

General fund

33,777

(26,850

)

(309

)

6,618

Library fund

79

-

-

79

33,856

(26,850

)

(309

)

6,697

Restricted funds

Projects fund

4,900

(5,209

)

309

-

Equipment fund

3,659

(1,301

)

-

2,358

Playarea fund

191,931

(18,154

)

-

173,777

Community Centre fund

549,348

(14,674

)

-

534,674

749,838

(39,338

)

309

710,809

TOTAL FUNDS

783,694

(66,188

)

-

717,506

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

Incoming resources

Resources expended

Movement in funds

£

£

£

Unrestricted funds

General fund

44,215

(71,065

)

(26,850

)

Restricted funds

Projects fund

17,304

(22,513

)

(5,209

)

Playarea fund

-

(18,154

)

(18,154

)

Equipment fund

-

(1,301

)

(1,301

)

Community Centre fund

-

(14,674

)

(14,674

)

17,304

(56,642

)

(39,338

)

TOTAL FUNDS

61,519

(127,707

)

(66,188

)