Naver Teleservice Centre - Charities report - 19.3.2

REGISTERED COMPANY NUMBER: SC140712 (Scotland)

REGISTERED CHARITY NUMBER: SC020662

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 March 2020

for

Naver Teleservice Centre

Page

Report of the Trustees

1

to

4

Independent Examiner's Report

5

Statement of Financial Activities

6

Balance Sheet

7

to

8

Notes to the Financial Statements

9

to

14

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 2020.

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 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The principal activities of the company are the relief of poverty through the advancement of

education and promotion of employment and economic activity for the benefit of the community

through the provision of a community teleservice centre that provides the necessary

accommodation for these activities to take place.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

1. The NTC continues to provide office space and facilities to enable organisations to operate for

the benefit of the local community. Provision of a regular weekend book session for younger

children has been proposed via Highlife Highland and supported by the Board.

2. The NTC continues to provide free access to computer technology and the internet ensuring that

all facilities are kept up to date with advances in technology. Printing facilities are available via

Highlife Highland Library Service. The service continues to be used on a regular basis both by

people living locally and by visitors to the area. During the current 'lockdown' situation, appropriate

measures have been taken to protect the public. The building has been closed but local people

cans still remotely access free wifi from outside the building (i.e. those experiencing problems with

their personal internet provision).

3. Accommodation continues to be made available to local community groups providing free

training opportunities and activities for local residents. One room on the ground floor is used for

essential storage space, by two local voluntary groups, for a minimal annual fee. This facilitates a

valuable contribution to the local community and provides a small income to contribute to the

ongoing facilities provided by the NTC.

4. Accommodation for meetings has continued to be provided to interested parties by

arrangement. An annual fee has been arranged for one regular user (Strathnaver Museum).

5. Fire Risk and Health & Safety Regulations continue to be monitored to ensure that the building

meets required standards. A layout of the building has been drafted and positioned next to fire

alarm system in main room (as per recommendation by Chubb). Annual alarm servicing has been

merged with that of another local voluntary group to make more efficient use of engineer time. Fire

extinguishers are checked annually by Highland Council/Highlife Highland.

6. The Board have taken action to explore 'change of use' options and agreed that the proposal to

convert the upstairs part of the building back into residential accommodation best meets the needs

of the community. A survey of the premises has now been completed by a Housing Trust and

conversion into accommodation has been deemed viable. A community consultation has been

carried out and it confirmed commitment to retaining the building as a community owned/run asset

through the provision of affordable housing in addition to current services provided. Current office

users have been kept up to date and arrangements for relocation of upstairs staff to downstairs

office space is being explored. All relevant parties, including the local Community Council and

current office users have been kept informed of plans. Funding for conversion costs is being

pursued by the Housing Trust and applications will be made to local funding bodies by the

Telecentre as necessary.

7. An application for funding was submitted to SSE with the aim of sustaining service provision

whilst the affordable housing option is being pursued. This application proved successful and the

grant awarded has enabled the Telecentre to sustain its current services.

8. The building continues to be maintained to an acceptable standard.

FINANCIAL REVIEW

Principal funding sources

Principal funding sources continue to be the receipt of room hire rentals and contributions to the

use of related electricity usage.

Reserves policy

The Directors have established a policy whereby the unrestricted funds not committed or invested

in tangible fixed assets held by the charity should be at least three 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 decrease in income.

FUTURE PLANS

1. To continue to provide the facilities and technological equipment that have become a vital part of

the Bettyhill, Altnaharra and Strathnaver community.

2. To maintain the income that finances these activities and where necessary explore additional

funding resources as required.

3. To actively pursue the conversion of upstairs into affordable housing for local residents in lieu of

reduced demand for office space and/or future relocation of public services.

4. To maintain the building and continue to monitor energy efficiency.

5. To maintain technology to ensure that an accessible service continues to be provided.

6. To continue to work alongside Highland Council and Highlife Highland to provide the community

with the most accessible and effective service possible.

7. To ensure that the building continues to meet required fire safety standards.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The governing documents of the Naver Teleservice Centre are the Memorandum and Articles of

Association of the company incorporated on 14 October 1992.

The Naver Teleservice Centre (NTC) is a charitable company limited by guarantee of £1 per

member and has no share capital. Permission has been obtained from the Registrar of Companies

to omit the word 'Limited' from the company's name.

Directors

The directors who served during the year are listed in full below, together with details of in-year

changes.

The company is limited by guarantee and therefore no director has any interest in the company.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

SC140712 (Scotland)

Registered Charity number

SC020662

Registered office

Bettyhill

Thurso

Caithness

KW14 7SS

Trustees

Mrs E Mackay

Miss A E Mackay

Mrs A M Mackay

Mrs H J Ross

Mrs M C M Telfer

Mrs P D Munro

Company Secretary

Mrs E Mackay

Independent Examiner

Marcus D. MacIver

CA (ICAS)

Mackay & Co

Chartered Accountants

Unit 8

Golspie Business Park

Golspie

Sutherland

KW10 6UB

Approved by order of the board of trustees on 30 April 2020 and signed on its behalf by:

Miss A E Mackay - Trustee

I report on the accounts for the year ended 31 March 2020 set out on pages six to fourteen.

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. 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. 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 connection with 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

Unit 8

Golspie Business Park

Golspie

Sutherland

KW10 6UB

30 April 2020

31.3.20

31.3.19

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

118

-

118

59

Charitable activities

3

General

-

3,990

3,990

-

Other trading activities

2

11,732

-

11,732

10,310

Total

11,850

3,990

15,840

10,369

EXPENDITURE ON

Charitable activities

4

General

11,686

2,100

13,786

13,101

NET INCOME/(EXPENDITURE)

164

1,890

2,054

(2,732

)

RECONCILIATION OF FUNDS

Total funds brought forward

5,509

-

5,509

8,241

TOTAL FUNDS CARRIED FORWARD

5,673

1,890

7,563

5,509

31.3.20

31.3.19

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

9

1,786

-

1,786

2,775

CURRENT ASSETS

Stocks

10

-

-

-

200

Debtors

11

2,228

-

2,228

1,796

Cash at bank and in hand

2,450

1,890

4,340

2,515

4,678

1,890

6,568

4,511

CREDITORS

Amounts falling due within one year

12

(791

)

-

(791

)

(854

)

NET CURRENT ASSETS

3,887

1,890

5,777

3,657

TOTAL ASSETS LESS CURRENT LIABILITIES

5,673

1,890

7,563

6,432

ACCRUALS AND DEFERRED INCOME

13

-

-

-

(923

)

NET ASSETS

5,673

1,890

7,563

5,509

FUNDS

14

Unrestricted funds

5,673

5,509

Restricted funds

1,890

-

TOTAL FUNDS

7,563

5,509

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2020 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 and authorised for issue on 30 April 2020 and were signed on its behalf by:

A E Mackay - Trustee

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 2019)', 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

-

Straight line over 50 years

Computer equipment

-

25% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance

for obsolete and slow moving items.

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.	OTHER TRADING ACTIVITIES

31.3.20

31.3.19

£

£

Teleservice centre rents

7,435

7,886

Electricity contributions

4,297

2,424

11,732

10,310

3.	INCOME FROM CHARITABLE ACTIVITIES

31.3.20

31.3.19

Activity

£

£

Grants

General

3,990

-

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

31.3.20

31.3.19

£

£

SSE

3,990

-

4.	CHARITABLE ACTIVITIES COSTS

Support

Direct

costs (see

Costs

note 5)

Totals

£

£

£

General

12,774

1,012

13,786

5.	SUPPORT COSTS

Governance

costs

£

General

1,012

6.	NET INCOME/(EXPENDITURE)

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

31.3.20

31.3.19

£

£

Prior year under accrual

-

480

Depreciation - owned assets

989

986

7.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2020

nor for the year ended 31 March 2019.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2020 nor for the year

ended 31 March 2019.

8.	STAFF COSTS

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

31.3.20

31.3.19

Staff

2

2

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

9.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

and

Computer

property

fittings

equipment

Totals

£

£

£

£

COST

At 1 April 2019 and 31 March 2020

3,279

22,561

3,683

29,523

DEPRECIATION

At 1 April 2019

1,427

22,561

2,760

26,748

Charge for year

66

-

923

989

At 31 March 2020

1,493

22,561

3,683

27,737

NET BOOK VALUE

At 31 March 2020

1,786

-

-

1,786

At 31 March 2019

1,852

-

923

2,775

10.

STOCKS

31.3.20

31.3.19

£

£

Stocks

-

200

11.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.20

31.3.19

£

£

Trade debtors

2,228

1,796

12.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.20

31.3.19

£

£

Accrued expenses

791

854

13.	ACCRUALS AND DEFERRED INCOME

31.3.20

31.3.19

£

£

Deferred capital grants

-

923

14.	MOVEMENT IN FUNDS

Net

movement

At

At 1.4.19

in funds

31.3.20

£

£

£

Unrestricted funds

General fund

5,509

164

5,673

Restricted funds

Restricted fund

-

1,890

1,890

TOTAL FUNDS

5,509

2,054

7,563

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

11,850

(11,686

)

164

Restricted funds

Restricted fund

3,990

(2,100

)

1,890

TOTAL FUNDS

15,840

(13,786

)

2,054

Comparatives for movement in funds

Net

movement

At

At 1.4.18

in funds

31.3.19

£

£

£

Unrestricted funds

General fund

8,241

(2,732

)

5,509

TOTAL FUNDS

8,241

(2,732

)

5,509

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

10,369

(13,101

)

(2,732

)

TOTAL FUNDS

10,369

(13,101

)

(2,732

)

A current year 12 months and prior year 12 months combined position is as follows:

Net

movement

At

At 1.4.18

in funds

31.3.20

£

£

£

Unrestricted funds

General fund

8,241

(2,568

)

5,673

Restricted funds

Restricted fund

-

1,890

1,890

TOTAL FUNDS

8,241

(678

)

7,563

A current year 12 months and prior year 12 months combined net movement in funds,

included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

22,219

(24,787

)

(2,568

)

Restricted funds

Restricted fund

3,990

(2,100

)

1,890

TOTAL FUNDS

26,209

(26,887

)

(678

)

15.	RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2020.