The Breasclete Community Association - Charities report - 22.1

REGISTERED COMPANY NUMBER: SC225858 (Scotland)

REGISTERED CHARITY NUMBER: 010214

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2021

FOR

THE BREASCLETE COMMUNITY ASSOCIATION

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

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 30 November 2021. 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 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

Due to Covid 19 the community centre was closed in March 2020 and introduced a phased opening for certain activities in 2021

-The Community centre interior was repainted

-The Community centre guttering was renewed

- A new computer system was installed

- Organised community food parcels

- Introduced a rota for delivering medical prescriptions

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, gym, 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;

- successfully organised and held 2 weddings in the community centre

- Board meetings were held by Zoom

- continued to manage a new Flannen Isles Exhibition ;

- organised and staged the annual Fireworks display

- 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.

- Purchased additional equipment for the playarea

- Childrens music lessons introduced

- Mother & toddler group introduced

- Junior Youth club restarted

- Vouchers issued to the seniors citizens instead of holding annual dinner

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 2021 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 £38,145 for the period (2020 - net expenditure of £19,841). This represents an increase of £724 in unrestricted funds and a decrease of £38,869 in restricted funds. Unrestricted reserves has as a result increased to £803.

The decrease in restricted funds relates mainly to 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 utilized 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 four wedding receptions scheduled to be held at the centre during 2022;

- continuing to organise and stage fundraising and community events at the community centre including the staging of a concert as part of the 2022 Hebridean Celtic Festival;

- refurbish the centre foyer

- Office space will be available for rent

- Fitting of LED lighting in the Community Centre

- Creation of a new football pitch/ grassed playarea

- Develop a local loch as a venue for a new kayaking facility

- Purchase new gym equipment

- Creating a new boat slipway.

- Investigate purchase of electric vehicle for community use

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

A Smith

A A Mackenzie

C M M Maclennan

E Macarthur

N K Macdonald

L Macdonald

N Macdonald

G M Morrison

J Smith

D Mackenzie

A Macdonald

J Chisolm

C Mackenzie

E Mackay (appointed 2.12.20)

K Macdonald (appointed 1.12.21)

S Mackenzie (appointed 1.12.21)

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 6 July 2022 and signed on its behalf by:

J Smith - Trustee

I report on the accounts for the year ended 30 November 2021 set out on pages six to fourteen.

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. 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.

Calum Macdonald

Chartered Accountant/ICAS

CIB Services

Chartered Accountants

63 Kenneth Street

Stornoway

Isle of Lewis

Western Isles

HS1 2DS

6 July 2022

30.11.21

30.11.20

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

2,554

-

2,554

812

Charitable activities

4

Community centre

29,221

-

29,221

44,006

Investment income

3

2

-

2

1

Total

31,777

-

31,777

44,819

EXPENDITURE ON

Charitable activities

5

Community centre

31,053

38,869

69,922

64,660

NET INCOME/(EXPENDITURE)

724

(38,869

)

(38,145

)

(19,841

)

RECONCILIATION OF FUNDS

Total funds brought forward

79

664,111

664,190

684,031

TOTAL FUNDS CARRIED FORWARD

803

625,242

626,045

664,190

30.11.21

30.11.20

Notes

£

£

FIXED ASSETS

Tangible assets

9

584,471

618,800

CURRENT ASSETS

Debtors

10

341

3,941

Cash at bank

43,473

45,636

43,814

49,577

CREDITORS

Amounts falling due within one year

11

(2,240

)

(4,187

)

NET CURRENT ASSETS

41,574

45,390

TOTAL ASSETS LESS CURRENT LIABILITIES

626,045

664,190

NET ASSETS

626,045

664,190

FUNDS

13

Unrestricted funds

803

79

Restricted funds

625,242

664,111

TOTAL FUNDS

626,045

664,190

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 November 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 November 2021 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 6 July 2022 and were signed on its behalf by:

J Smith - 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.

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

30.11.21

30.11.20

£

£

Donations

2,554

812

3.	INVESTMENT INCOME

30.11.21

30.11.20

£

£

Bank account interest

2

1

All investment income arises from assets held within the UK.

4.	INCOME FROM CHARITABLE ACTIVITIES

30.11.21

30.11.20

Activity

£

£

Rental Income

Community centre

22,188

3,170

Hall Hires

Community centre

200

2,036

Grants

Community centre

5,000

26,650

Events

Community centre

1,693

11,534

Gym Membership Fees

Community centre

140

616

29,221

44,006

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

30.11.21

30.11.20

£

£

Comhairle nan Eilean Siar

-

1,650

Business Support Fund

-

25,000

Highlands and Islands Enterprise

5,000

-

5,000

26,650

5.	CHARITABLE ACTIVITIES COSTS

Direct

Support

Costs

costs

Totals

£

£

£

Community centre

69,042

880

69,922

6.	NET INCOME/(EXPENDITURE)

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

30.11.21

30.11.20

£

£

Depreciation - owned assets

36,495

36,387

7.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 30 November 2021 nor for the year ended 30 November 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 30 November 2021 nor for the year ended 30 November 2020.

8.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

funds

funds

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

812

-

812

Charitable activities

Community centre

19,006

25,000

44,006

Investment income

1

-

1

Total

19,819

25,000

44,819

EXPENDITURE ON

Charitable activities

Community centre

26,671

37,989

64,660

NET INCOME/(EXPENDITURE)

(6,852

)

(12,989

)

(19,841

)

RECONCILIATION OF FUNDS

Total funds brought forward

6,931

677,100

684,031

TOTAL FUNDS CARRIED FORWARD

79

664,111

664,190

9.	TANGIBLE FIXED ASSETS

Fixtures

and

Computer

Buildings

Playarea

fittings

equipment

Totals

£

£

£

£

£

COST

At 1 December 2020

733,763

181,530

174,858

1,579

1,091,730

Additions

-

2,166

-

-

2,166

At 30 November 2021

733,763

183,696

174,858

1,579

1,093,896

DEPRECIATION

At 1 December 2020

228,437

81,693

162,021

779

472,930

Charge for year

14,674

18,226

3,296

299

36,495

At 30 November 2021

243,111

99,919

165,317

1,078

509,425

NET BOOK VALUE

At 30 November 2021

490,652

83,777

9,541

501

584,471

At 30 November 2020

505,326

99,837

12,837

800

618,800

10.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.11.21

30.11.20

£

£

Other debtors

-

2,000

VAT

-

1,602

Prepayments and accrued income

341

339

341

3,941

11.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.11.21

30.11.20

£

£

Trade creditors

466

1,699

VAT

-

1,602

Accrued expenses

1,774

886

2,240

4,187

12.	ANALYSIS OF NET ASSETS BETWEEN FUNDS

30.11.21

30.11.20

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

£

£

£

£

Fixed assets

(909

)

585,380

584,471

618,800

Current assets

3,309

40,505

43,814

49,577

Current liabilities

(1,597

)

(643

)

(2,240

)

(4,187

)

803

625,242

626,045

664,190

13.	MOVEMENT IN FUNDS

Net

Transfers

At

movement

between

At

1.12.20

in funds

funds

30.11.21

£

£

£

£

Unrestricted funds

General fund

-

724

-

724

Library fund

79

-

-

79

79

724

-

803

Restricted funds

Equipment fund

731

(519

)

-

212

Playarea fund

158,054

(18,226

)

(5,450

)

134,378

Community Centre fund

505,326

(20,124

)

5,450

490,652

664,111

(38,869

)

-

625,242

TOTAL FUNDS

664,190

(38,145

)

-

626,045

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

31,777

(31,053

)

724

Restricted funds

Equipment fund

-

(519

)

(519

)

Playarea fund

-

(18,226

)

(18,226

)

Community Centre fund

-

(20,124

)

(20,124

)

-

(38,869

)

(38,869

)

TOTAL FUNDS

31,777

(69,922

)

(38,145

)

Comparatives for movement in funds

Net

At

movement

At

1.12.19

in funds

30.11.20

£

£

£

Unrestricted funds

General fund

6,852

(6,852

)

-

Library fund

79

-

79

6,931

(6,852

)

79

Restricted funds

Equipment fund

1,477

(746

)

731

Playarea fund

155,623

2,431

158,054

Community Centre fund

520,000

(14,674

)

505,326

677,100

(12,989

)

664,111

TOTAL FUNDS

684,031

(19,841

)

664,190

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

19,819

(26,671

)

(6,852

)

Restricted funds

Equipment fund

-

(746

)

(746

)

Playarea fund

25,000

(22,569

)

2,431

Community Centre fund

-

(14,674

)

(14,674

)

25,000

(37,989

)

(12,989

)

TOTAL FUNDS

44,819

(64,660

)

(19,841

)

General fund

The general fund represents unrestricted funds which the trustees are free to use in accordance with the charitable objects.

Library fund

This represents unrestricted funds designated by the trustees to assist with library costs.

Projects fund

This represents grants received from public funding agencies and trusts to assist with specified revenue and project costs.

Equipment fund

This represents grants and donations received from public funding agencies and trusts, and funds set aside by the charity, to assist with the purchase of equipment, fixtures and fittings. The funds are utilised to fund the future depreciation of the capital expenditure.

Playarea fund

This represents grants received from public funding agencies and trusts, and funds set aside by the charity, to assist with the construction of a playarea and eco-garden. The funds are utilised to fund the future depreciation of the capital expenditure.

Community Centre fund

This represents the funds originally raised from various organisations to assist in the building of the community centre together with the grants and donations received from public funding agencies and trusts, and funds set aside by the charity, to assist with the building of an extension to the centre and the purchase of fixtures and fittings. The funds are utilised to fund the future depreciation of the capital expenditure.