The Scottish Foundation for Social and E - Charities report - 19.1

THE SCOTTISH FOUNDATION FOR SOCIAL AND ECONOMIC DEVELOPMENT - Company Information

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REGISTERED COMPANY NUMBER: SC102981 (Scotland)

REGISTERED CHARITY NUMBER: SC004151

TRUSTEES' REPORT AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019

FOR

THE SCOTTISH FOUNDATION FOR SOCIAL AND

ECONOMIC DEVELOPMENT

THE SCOTTISH FOUNDATION FOR SOCIAL AND

ECONOMIC DEVELOPMENT

CONTENTS OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2019

Page

Trustees' Report

Independent Examiner's Report

Statement of Financial Activities

Balance Sheet

Notes to the Financial Statements

THE SCOTTISH FOUNDATION FOR SOCIAL AND

ECONOMIC DEVELOPMENT

TRUSTEES' REPORT

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 purpose of the charitable group is to support the relief of poverty and unemployed and disadvantaged people, to advance

education of young and unemployed people and to assist other charitable organisations that are concerned with the advancement

of education and relief of poverty through community development initiatives.

Activities

The charity has remained dormant throughout the current and prior year.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The charity's subsidiary companies were not in a position to pay up any income during the year under review. Results of the

subsidiary companies are included in the notes to the financial statements.

FINANCIAL REVIEW

Reserves policy

The directors have not established a reserves policy at this stage as they continue to seek to stabilise the financial health of the

group. Unrestricted reserves totalling £303 are held by the company at the year end.

In these austere trading times, the directors will look to continue to operate a full cost recovery position on the overhead expenses

of the subsidiary organisations to protect the group against future economic uncertainties and will allow the directors to pursue the

stated aims of the group.

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 charity is a company limited by guarantee to £1 per member. By definition no equity interests can be held in the company by

any of the directors or any dividend paid. The charity's governing document consists of the Memorandum and Articles of

Association of the company. The charity has three wholly owned subsidiaries, Cullisvale Services Limited trading as The Scottish

Training Foundation (STF), Portfolio Consultants Limited and Carfin Nursery Garden Centre & Landscape Services Limited. The

results of these subsidiaries are shown within the notes to these financial statements.

The Company is recognised as a Scottish Charity, Number SC004151. In the directors' opinion the Company is not liable to UK

income or corporation tax under the provisions of the Income and Corporation Taxes Act 1988, sections 505 and 506.

The Company has a Board of Directors which is responsible for general policy decisions and for ensuring that the appropriate

safeguards are in place in both the Company and wider group. The Board consists of an executive director and two non-executive

directors, all experienced in their professional fields, namely business finance and development, education and third sector social

enterprise.

The group employs a General Manager, Andrew Weir, to manage the day to day operations of the group whilst overseeing the

business financial management and corporate governance requirements.

At present the Board is satisfied with its composition which it believes to be effective in managing the business and the subsidiary

companies and driving the short, medium and long term strategies.

The Board is responsible for the appointment of new members and continues to monitor the operational and strategic needs of the

business, and will consider the appointment of new directors with relevant specialist skills that it believes will enhance the

Company in the pursuit of its strategic goals.

Recruitment and appointment of new trustees

New directors are issued with a welcome pack which includes further information on their legal obligations under charity and

company law, the content of the Memorandum and Articles of Association, the business plan and recent financial performance of

the charity and its subsidiary undertakings.

The directors have conducted their own review of the major risks to which the charity is exposed and systems have been

established to mitigate those risks. These procedures are periodically reviewed to ensure that they continue to meet the needs of

the charity.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

SC102981 (Scotland)

Registered Charity number

SC004151

Registered office

c/o The Scottish Training Foundation

Aspire Business Centre

16 Farmeloan Road

Rutherglen

Glasgow

G73 1DL

Trustees

S Currie

Mrs E Thomas

Mrs D Wilson

Company Secretary

S Currie

Independent examiner

David Holt ACA

Institute of Chartered Accountants in England and Wales

Consilium Chartered Accountants

169 West George Street

Glasgow

G2 2LB

Approved by order of the board of trustees on 8 September 2019 and signed on its behalf by:

S Currie - Secretary

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF

THE SCOTTISH FOUNDATION FOR SOCIAL AND

ECONOMIC DEVELOPMENT

I report on the accounts for the year ended 31 March 2019 set out on pages four to eight.

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.

David Holt ACA

Institute of Chartered Accountants in England and Wales

Consilium Chartered Accountants

169 West George Street

Glasgow

G2 2LB

9 September 2019

THE SCOTTISH FOUNDATION FOR SOCIAL AND

ECONOMIC DEVELOPMENT

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 MARCH 2019

2019

2018

Unrestricted

fund

Restricted fund

Total

funds

Total

funds

Notes

INCOME AND ENDOWMENTS FROM

RECONCILIATION OF FUNDS

Total funds brought forward

303

TOTAL FUNDS CARRIED FORWARD

303

THE SCOTTISH FOUNDATION FOR SOCIAL AND

ECONOMIC DEVELOPMENT

BALANCE SHEET

AT 31 MARCH 2019

2019

2018

Unrestricted

fund

Restricted fund

Total

funds

Total

funds

Notes

FIXED ASSETS

Investments

200

CURRENT ASSETS

Cash at bank

103

NET CURRENT ASSETS

103

TOTAL ASSETS LESS CURRENT LIABILITIES

303

NET ASSETS

303

FUNDS

Unrestricted funds

303

TOTAL FUNDS

303

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 8 September 2019 and were signed on its behalf by:

Mrs E Thomas -Trustee

Mrs D Wilson -Trustee

THE SCOTTISH FOUNDATION FOR SOCIAL AND

ECONOMIC DEVELOPMENT

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

Financial instruments

The Company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

Financial instruments are classified and accounted for as financial assets, financial liabilities or equity instruments,

according to the substance of the contractual arrangement.

Financial instruments which are assets are stated at cost less any provision for impairment. Financial liabilities are stated at

principal capital amounts outstanding at the period end. Issue costs relating to financial liabilities are deducted from the

outstanding balance and are amortised over the period to the due date for repayment of the financial liability.

An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of

its liabilities. A financial liability is any contractual arrangement for an entity to deliver cash to the holder of the associated

financial instrument.

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.

All of the charity's funds are unrestricted.

Investments

Investments are stated at cost less provision for impairment, if such reduction is deemed to be of a permanent nature.

2.	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.

3.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

There were no movements in funds during the prior year.

4.	FIXED ASSET INVESTMENTS

Shares in group

undertakings

MARKET VALUE

At 1 April 2018 and 31 March 2019

200

NET BOOK VALUE

At 31 March 2019

200

At 31 March 2018

200

There were no investment assets outside the UK.

The company's investments at the balance sheet date in the share capital of companies include the following:

Cullisvale Services Limited

Registered office: Aspire Business Centre 16 Farmeloan Road, Rutherglen, Glasgow, G73 1DL

Nature of business: Provision of training services

Class of share:

holding

Ordinary

100

2019

2018

Aggregate capital and reserves

(167,927

)

(256,677

)

Profit/(loss) for the year

88,650

(265,063

)

Portfolio Consultants Limited

Registered office: C/O The Scottish Training Foundation Aspire Business Centre, 16 Farmeloan Road, Rutherglen, Glasgow, G73 1DL

Nature of business: Provision of payroll bureau services

Class of share:

holding

Ordinary

100

2019

2018

Aggregate capital and reserves

(29,609

)

(77,057

)

Profit for the year

47,448

15,227

Carfin Nursery Garden Centre & Landscape Services Limited

Registered office: C/O The Scottish Training Foundation Aspire Business Centre, 16 Farmeloan Road, Rutherglen, Glasgow, G73 1DL

Nature of business: Provision of landscape services

Class of share:

holding

Limited by guarantee

100

31/3/19

31/3/18

Profit for the year

145,739

The aggregate capital and reserves of Carfin Nursery Garden Centre & Landscape Services Limited at 31 March 2019 and 31

March 2018 were £nil.

5.	MOVEMENT IN FUNDS

There are no movements in funds during the year under review.

6.	RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2019.

7.	COMPANY LIMITED BY GUARANTEE

On a winding up the liability of each member is limited to £1.