Applecross Community Company - Charities report - 19.3.2
Applecross Community Company - Charities report - 19.3.2
| REGISTERED COMPANY NUMBER: |
| REGISTERED CHARITY NUMBER: |
| Report of the Trustees and |
| Unaudited Financial Statements for the Year Ended 31 March 2019 |
| for |
| Applecross Community Company |
| Applecross Community Company |
| Contents of the Financial Statements |
| for the Year Ended 31 March 2019 |
| Page |
| Report of the Trustees | 1 to 3 |
| Independent Examiner's Report | 4 |
| Statement of Financial Activities | 5 |
| Balance Sheet | 6 to 7 |
| Notes to the Financial Statements | 8 to 14 |
| Applecross Community Company |
| 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 overall aim of the Community Company is to promote sustainable development within the |
| Applecross peninsula. |
| Applecross Community Company was established in 2008 and provides a number of services to |
| the community including: the community filing station, community broadband (AppleNet) and |
| community toilets. These services are a vital lifeline for our community. Applecross Community |
| Company was instrumental in developing and establishing our local community Hydro Scheme |
| (AppleJuice) that generates clean, renewable energy and returns a share of profits back to the |
| community company to support our efforts. |
| ACHIEVEMENT AND PERFORMANCE |
| Charitable activities |
| This year ACC completed a feasibility study (funded by the Scottish Land Fund) on land beside the |
| GP's surgery where we plan to build two or three community-owned houses. No problems were |
| identified as a result of the feasibility study and so progress continues on this project. |
| ACC undertook a community survey this year and are developing a 5-year Action Plan. The |
| Scottish Community Development Centre (SCDC) assisted in the development of the survey, |
| collated and analysed the data and then led the ACC board through strategic planning workshops. |
| The survey received 153 responses (60% of the population) and gathered the community's |
| thoughts on a range of themes and issues, including: broadband, community priorities, economic |
| development and sport, recreation and culture. |
| In December 2018, ACC commissioned Planning Aid Scotland to undertake a Community Land |
| Use Plan project (Plan It Applecross) for the Applecross Community. This plan aims to help |
| address specific local issues such as housing affordability, land supply, sustainable development |
| and tourism planning. It is collaborative process, involving local people and multiple stakeholders |
| including the Applecross Community Company, The Applecross Trust, The Highland Council, The |
| Highland Small Communities Housing Trust, and various statutory bodies: Scottish Natural |
| Heritage, Scottish Environmental Protection Agency and Historic Environment Scotland. |
| Our trading subsidiary, Applecross Community Trading Company, continues to manage our |
| community broadband (AppleNet) and community filling station. |
| We currently provide broadband to around one hundred households and businesses on the |
| peninsula and on north Raasay and Rona. The introduction of BT's 'fibre' broadband service has |
| meant we have lost some customers to BT and this has undermined the profitability of AppleNet. |
| We await the outcome of the governments R100 broadband program to see what effect this will |
| have on the future of AppleNet. |
| The filing station continues to work well and the extra traffic from the North Coast 500 has |
| increased the turnover and profitability of the pumps. We set the fuel prices slightly higher in the |
| summer than in the winter in order to maximize the profit from tourist rather than local trade. |
| Applecross Community Company |
| Report of the Trustees |
| for the Year Ended 31 March 2019 |
| FINANCIAL REVIEW |
| Reserves policy |
| The Company's policy is to maintain a small amount of general reserves to meet day to day |
| running costs in the short term and the Trustees consider the reserves held meet that requirement. |
| 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. |
| Applecross Community Company is a Scottish company, limited by guarantee, and is a registered |
| Scottish charity. 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. |
| REFERENCE AND ADMINISTRATIVE DETAILS |
| Registered Company number |
| Registered Charity number |
| Registered office |
| Trustees |
| - appointed 24.4.19 |
| - appointed 24.4.19 |
| - appointed 9.5.18 |
| - resigned 1.10.19 |
| - resigned 9.11.18 |
| - appointed 3.10.19 |
| - resigned 9.5.18 |
| - resigned 9.5.18 |
| - resigned 9.11.18 |
| Company Secretary |
| Applecross Community Company |
| Report of the Trustees |
| for the Year Ended 31 March 2019 |
| REFERENCE AND ADMINISTRATIVE DETAILS |
| Independent examiner |
| Marcus D MacIver CA |
| ICAS |
| Mackay & Co |
| Chartered Accountants |
| Golspie |
| Sutherland |
| KW10 6RH |
| Approved by order of the board of trustees on |
| Independent Examiner's Report to the Trustees of |
| Applecross Community Company |
| Independent examiner's report to the trustees of Applecross Community Company ('the |
| Company') |
| I report to the charity trustees on my examination of the accounts of the Company for the year |
| ended 31 March 2019. |
| Responsibilities and basis of report |
| As the charity's trustees of the Company (and also its directors for the purposes of company law) |
| you are responsible for the preparation of the accounts in accordance with the requirements of the |
| Companies Act 2006 ('the 2006 Act'). |
| Having satisfied myself that the accounts of the Company are not required to be audited under |
| Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my |
| examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 |
| ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity |
| Commission under section 145(5) (b) of the 2011 Act. |
| Independent examiner's statement |
| I have completed my examination. I confirm that no matters have come to my attention in |
| connection with the examination giving me cause to believe: |
| 1. | accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or |
| 2. | the accounts do not accord with those records; or |
| 3. | the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or |
| 4. | the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)]. |
| I have no concerns and have come across no other matters in connection with the examination to |
| which attention should be drawn in this report 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 |
| 13 December 2019 |
| Applecross Community Company |
| Statement of Financial Activities |
| for the Year Ended 31 March 2019 |
| 31.3.19 | 31.3.18 |
| Unrestricted fund |
Restricted fund |
Total funds |
Total funds |
| Notes | £ | £ | £ | £ |
| INCOME AND ENDOWMENTS FROM |
| Donations and legacies | 2 |
| Other income |
| Total |
| EXPENDITURE ON |
| Charitable activities |
| NET INCOME/(EXPENDITURE) | ( |
) | ( |
) | ( |
) |
| Transfers between funds | 12 | 86,117 | (86,117 | ) | - | - |
| Net movement in funds | ( |
) | ( |
) | ( |
) |
| RECONCILIATION OF FUNDS |
| Total funds brought forward |
| TOTAL FUNDS CARRIED FORWARD | 135,291 |
| Applecross Community Company |
| Balance Sheet |
| At 31 March 2019 |
| 31.3.19 | 31.3.18 |
| Unrestricted fund |
Restricted fund |
Total funds |
Total funds |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Tangible assets | 9 |
| CURRENT ASSETS |
| Debtors | 10 |
| Cash at bank |
| CREDITORS |
| Amounts falling due within one year | 11 | ( |
) | ( |
) | ( |
) |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| NET ASSETS |
| FUNDS | 12 |
| Unrestricted funds | 116,833 | 37,407 |
| Restricted funds | 97,884 |
| TOTAL FUNDS | 135,291 |
| Applecross Community Company |
| Balance Sheet - continued |
| At 31 March 2019 |
| 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 |
| provisions applicable to charitable companies subject to the small companies regime. |
| The financial statements were approved by the Board of Trustees on |
| Applecross Community Company |
| 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. |
| Filling Station |
| Toilet Refurb |
| Broadband Equipment |
| 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. |
| Applecross Community Company |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 March 2019 |
| 2. | DONATIONS AND LEGACIES |
| Applecross Trust - £5,000 |
| Rabbie's Small Group Tours - £750 |
| Apple Juice - £45,000 |
| Broadband - £365 |
| Toilet donations - £3,087 |
| Ali's Memory Fund - £150 |
| Filling Station - £18,394 |
| General donations - £2,365 |
| 3. | NET INCOME/(EXPENDITURE) |
| Net income/(expenditure) is stated after charging/(crediting): |
| 31.3.19 | 31.3.18 |
| £ | £ |
| Depreciation - owned assets |
| 4. | 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. |
| 5. | STAFF COSTS |
| The average monthly number of employees during the year was as follows: |
| 31.3.19 | 31.3.18 |
| Admin | 2 | 2 |
| Cleaner | 1 | - |
| No employees received emoluments in excess of £60,000. |
| 6. | EXCEPTIONAL ITEMS |
| A correcting entry has been included to adjust the loan account between the charity and the |
| trading subsidiary, correcting for a loan repayment made by Apple Juice to the EST, on |
| behalf of Applecross Community Trading Ltd. This had previously been included as a |
| donation to Applecross Community Company, however it was in reality a donation to the |
| trading subsidiary - thus reducing the intercompany loan account. In turn, the trading |
| subsidiary has written off the Hydro Scheme asset which it had recognised on its accounts, |
| as this asset was built by and is being operated by Apple Juice, and it has no rights to the |
| asset, or to any income deriving from it. |
| Applecross Community Company |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 March 2019 |
| 7. | MATERIAL TRANSFERS |
| As part of a comprehensive review of the charity accounts, it was discovered that assets |
| which had been shown as restricted items on the balance sheet were not, and these have |
| been corrected this year. |
| 8. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES |
| Unrestricted fund |
Restricted fund |
Total funds |
| £ | £ | £ |
| INCOME AND ENDOWMENTS FROM |
| Donations and legacies |
| Other income |
| Total |
| EXPENDITURE ON |
| Charitable activities |
| Total |
| NET INCOME/(EXPENDITURE) | ( |
) | ( |
) |
| RECONCILIATION OF FUNDS |
| Total funds brought forward | 25,449 | 120,481 | 145,930 |
| TOTAL FUNDS CARRIED FORWARD | 37,407 | 97,884 | 135,291 |
| Applecross Community Company |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 March 2019 |
| 9. | TANGIBLE FIXED ASSETS |
| Filling Station |
Toilet Refurb |
Broadband Equipment |
Totals |
| £ | £ | £ | £ |
| COST |
| At 1 April 2018 and 31 March 2019 |
| DEPRECIATION |
| At 1 April 2018 |
| Charge for year |
| At 31 March 2019 |
| NET BOOK VALUE |
| At 31 March 2019 |
| At 31 March 2018 |
| 10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 31.3.19 | 31.3.18 |
| £ | £ |
| Grants receivable |
| Applecross Comm Trading Ltd | 38,755 | 71,273 |
| Other debtors |
| 11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 31.3.19 | 31.3.18 |
| £ | £ |
| Social Security & other taxes |
| Other creditors |
| Accrued expenses |
| Applecross Community Company |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 March 2019 |
| 12. | MOVEMENT IN FUNDS |
At 1.4.18 |
Net movement in funds |
Transfers between funds |
At 31.3.19 |
| £ | £ | £ | £ |
| Unrestricted funds |
| General fund | 37,407 | (6,691 | ) | 86,117 | 116,833 |
| Restricted funds |
| Restricted Funds | 97,884 | 1,853 | (86,117 | ) | 13,620 |
| TOTAL FUNDS | (4,838 | ) | 130,453 |
| Net movement in funds, included in the above are as follows: |
| Incoming resources |
Resources expended |
Movement in funds |
| £ | £ | £ |
| Unrestricted funds |
| General fund | 100,099 | (106,790 | ) | (6,691 | ) |
| Restricted funds |
| Restricted Funds | 25,997 | (24,144 | ) | 1,853 |
| TOTAL FUNDS | ( |
) | (4,838 | ) |
| Comparatives for movement in funds |
At 1.4.17 |
Net movement in funds |
At 31.3.18 |
| £ | £ | £ |
| Unrestricted Funds |
| General fund | 25,449 | 11,958 | 37,407 |
| Restricted Funds |
| Restricted Funds | 120,481 | (22,597 | ) | 97,884 |
| TOTAL FUNDS | 145,930 | (10,639 | ) | 135,291 |
| Applecross Community Company |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 March 2019 |
| 12. | MOVEMENT IN FUNDS - continued |
| Comparative net movement in funds, included in the above are as follows: |
| Incoming resources |
Resources expended |
Movement in funds |
| £ | £ | £ |
| Unrestricted funds |
| General fund | 21,543 | (9,585 | ) | 11,958 |
| Restricted funds |
| Restricted Funds | 49,400 | (71,997 | ) | (22,597 | ) |
| TOTAL FUNDS | 70,943 | (81,582 | ) | (10,639 | ) |
| A current year 12 months and prior year 12 months combined position is as follows: |
At 1.4.17 |
Net movement in funds |
Transfers between funds |
At 31.3.19 |
| £ | £ | £ | £ |
| Unrestricted funds |
| General fund | 25,449 | 5,267 | 86,117 | 116,833 |
| Restricted funds |
| Restricted Funds | 120,481 | (20,744 | ) | (86,117 | ) | 13,620 |
| TOTAL FUNDS | 145,930 | (15,477 | ) | - | 130,453 |
| A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows: |
| Incoming resources |
Resources expended |
Movement in funds |
| £ | £ | £ |
| Unrestricted funds |
| General fund | 121,642 | (116,375 | ) | 5,267 |
| Restricted funds |
| Restricted Funds | 75,397 | (96,141 | ) | (20,744 | ) |
| TOTAL FUNDS | 197,039 | (212,516 | ) | (15,477 | ) |
| Applecross Community Company |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 March 2019 |
| 13. | RELATED PARTY DISCLOSURES |
| Included within Debtors is a balance of £38,755 (£71,273 - 2018) due by the subsidiary |
| Applecross Community Trading Ltd. |
| In 2018/19 donations were made to Applecross Community Company amounting to £18,394 |
| (2017/18 - £10,832) by Applecross Community Trading Ltd. |