Skye & Lochalsh Friends of ARMS Ltd - Charities report - 21.2

REGISTERED COMPANY NUMBER: SC113809 (Scotland)

REGISTERED CHARITY NUMBER: SC008293

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 December 2020

for

Skye & Lochalsh Friends of ARMS Limited

Page

Report of the Trustees

1

to

3

Independent Examiner's Report

4

Statement of Financial Activities

5

Balance Sheet

6

Notes to the Financial Statements

7

to

12

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 December 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 principle activities of the company in the year under review was that of aiding and improving the conditions of those suffering from multiple sclerosis in the area of Skye and Lochalsh, or such other parts of the United Kingdom as the charity may from time to time determine by ordinary resolution, by the following means:

-

by bringing together persons suffering from multiple sclerosis and persons interested in multiple sclerosis,

-

by providing advice, guidance and moral and practical support for persons suffering from multiple sclerosis,

-

by providing therapy (including hyperbaric oxygen therapy) for persons suffering from multiple sclerosis or other symptoms or conditions in accordance with the protocols and guidelines of A.R.M.S (Multiple Sclerosis Research) Ltd.

The charity also aims to assist the principle company, being A.R.M.S (Multiple Sclerosis Research) Ltd., in promoting all or any of their objects.

Public benefit

Skye & Lochalsh Friends of ARMS Ltd is a public benefit entity.

Volunteers

The trustees recognise that if volunteers were required to be remunerated the charity could not continue its operations. They are therefore very grateful for their work and regard them as a great asset to the charity.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

For the majority of the year the charity was unable to operate due to the lockdown restrictions as a result of the Covid-19 pandemic.

FINANCIAL REVIEW

Reserves policy

The charity does not have a specific policy regarding the retention of free reserves which are those unrestricted funds not invested in fixed assets, designated to a specific purpose or otherwise committed. As indicated in the accompanying balance sheet, free reserves stood at £1,715 (2019 - £326).

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a memorandum of association which constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Recruitment and appointment of new trustees

Any person who has multiple sclerosis and any person who is interested in and wishes to promote the objects of the charity may become an ordinary member by signing the members' register and paying an annual subscription fee as set by the committee of management.

The committee of management, which comprises the directors of the charity, may at any time appoint by ordinary resolution any willing ordinary member to become a member of the committee. The foundation member, being A.R.M.S (Multiple Sclerosis Research) Ltd, may appoint any person, whether or not a member, to become a member of the committee.

The charity is seeking new trustees to join the the board ensuring that local inhabitants with multiple sclerosis can continue to benefit from the use of the charity's centre.

Organisational structure

All ordinary members and committee members are entitled to one vote at Annual General Meetings and the foundation member is entitled to one additional vote.

Induction and training of new trustees

New trustees are verbally advised on their duties and responsibilities on appointment. There are no formal training programs in place at present.

Wider network

A.R.M.S (Multiple Sclerosis Research) Ltd is the foundation member of Skye & Lochalsh Friends of ARMS.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

SC113809 (Scotland)

Registered Charity number

SC008293

Registered office

c/o Iain M Smart

Skye & Lochalsh Friends of ARMS Unit

8b Industrial Estate, Lisigarry Place

Portree

Isle of Skye

IV51 9BD

Trustees

I M Smart

C C MacLeod

P Smith

Independent Examiner

Faye MacLeod CA

Campbell Stewart MacLennan & Co

Chartered Accountants

8 Wentworth Street

Portree

Highland

IV51 9EJ

Bankers

Royal Bank of Scotland

Bank Street

Portree

Isle of Skye

IV51 9BX

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Skye & Lochalsh Friends of ARMS Limited for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

-	select suitable accounting policies and then apply them consistently;

-	observe the methods and principles in the Charity SORP;

-	make judgements and estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 29 September 2021 and signed on its behalf by:

I M Smart - Trustee

I report on the accounts for the year ended 31 December 2020 set out on pages five to twelve.

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.

Faye MacLeod CA

Campbell Stewart MacLennan & Co

Chartered Accountants

8 Wentworth Street

Portree

Highland

IV51 9EJ

29 September 2021

31/12/20

31/12/19

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

11,537

-

11,537

10,890

Charitable activities

Multiple Sclerosis therapy centre

178

-

178

1,244

Other trading activities

2

1,143

-

1,143

1,467

Investment income

3

-

-

-

2

Total

12,858

-

12,858

13,603

EXPENDITURE ON

Raising funds

283

-

283

515

Charitable activities

Multiple Sclerosis therapy centre

10,955

250

11,205

13,701

Supporting ARMS

1,320

-

1,320

2,690

Total

12,558

250

12,808

16,906

NET INCOME/(EXPENDITURE)

300

(250

)

50

(3,303

)

RECONCILIATION OF FUNDS

Total funds brought forward

32,535

9,018

41,553

44,856

TOTAL FUNDS CARRIED FORWARD

32,835

8,768

41,603

41,553

31/12/20

31/12/19

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

8

31,120

8,768

39,888

41,227

CURRENT ASSETS

Stocks

9

1,000

-

1,000

1,000

Prepayments and accrued income

377

-

377

399

Cash at bank and in hand

1,762

-

1,762

1,129

3,139

-

3,139

2,528

CREDITORS

Amounts falling due within one year

10

(1,424

)

-

(1,424

)

(2,202

)

NET CURRENT ASSETS

1,715

-

1,715

326

TOTAL ASSETS LESS CURRENT LIABILITIES

32,835

8,768

41,603

41,553

NET ASSETS

32,835

8,768

41,603

41,553

FUNDS

12

Unrestricted funds

32,835

32,535

Restricted funds

8,768

9,018

TOTAL FUNDS

41,603

41,553

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

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 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 29 September 2021 and were signed on its behalf by:

I M Smart - 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.

Allocation and apportionment of costs

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.

Long leasehold

-

over the term of the lease

Fixtures and fittings

-

15% on reducing balance

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 of the company, 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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Cash and cash equivalents

Cash and cash equivalents include cash at bank and in hand and highly liquid interest-bearing securities with maturities of three months or less.

Creditors

Short term creditors are measured at transaction price (which is usually the invoice price).

2.	OTHER TRADING ACTIVITIES

31/12/20

31/12/19

£

£

Fundraising events

1,044

1,238

Sales

99

229

1,143

1,467

3.	INVESTMENT INCOME

31/12/20

31/12/19

£

£

Deposit account interest

-

2

4.	NET INCOME/(EXPENDITURE)

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

31/12/20

31/12/19

£

£

Depreciation - owned assets

1,339

1,367

Hire of plant and machinery

812

915

Other operating leases

125

75

5.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2020 nor for the year ended 31 December 2019.

The trustees, who are the key management personnel of the charity, did not receive any compensation in either the year ended 31 December 2020 or in the prior year.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 December 2020 nor the year ended 31 December 2019.

6.	STAFF COSTS

7.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

fund

funds

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

10,890

-

10,890

Charitable activities

Multiple Sclerosis therapy centre

1,244

-

1,244

Other trading activities

1,467

-

1,467

Investment income

2

-

2

Total

13,603

-

13,603

EXPENDITURE ON

Raising funds

515

-

515

Charitable activities

Multiple Sclerosis therapy centre

13,447

254

13,701

Supporting ARMS

2,690

-

2,690

Total

16,652

254

16,906

NET INCOME/(EXPENDITURE)

(3,049

)

(254

)

(3,303

)

RECONCILIATION OF FUNDS

Total funds brought forward

35,584

9,272

44,856

TOTAL FUNDS CARRIED FORWARD

32,535

9,018

41,553

8.	TANGIBLE FIXED ASSETS

Fixtures

Long

and

leasehold

fittings

Totals

£

£

£

COST

At 1 January 2020 and 31 December 2020

79,473

29,818

109,291

DEPRECIATION

At 1 January 2020

39,289

28,775

68,064

Charge for year

1,182

157

1,339

At 31 December 2020

40,471

28,932

69,403

NET BOOK VALUE

At 31 December 2020

39,002

886

39,888

At 31 December 2019

40,184

1,043

41,227

9.

STOCKS

31/12/20

31/12/19

£

£

Stocks

1,000

1,000

10.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/12/20

31/12/19

£

£

Other creditors

806

869

Accrued expenses

618

1,333

1,424

2,202

11.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

31/12/20

31/12/19

£

£

Within one year

705

705

Between one and five years

400

1,005

In more than five years

2,900

3,000

4,005

4,710

12.	MOVEMENT IN FUNDS

Net

movement

At

At 1.1.20

in funds

31.12.20

£

£

£

Unrestricted funds

General fund

32,535

300

32,835

Restricted funds

Improvements to Multiple Sclerosis therapy centre

8,831

(228

)

8,603

Highland Cross - vibro gyms

187

(22

)

165

9,018

(250

)

8,768

TOTAL FUNDS

41,553

50

41,603

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

12,858

(12,558

)

300

Restricted funds

Improvements to Multiple Sclerosis therapy centre

-

(228

)

(228

)

Highland Cross - vibro gyms

-

(22

)

(22

)

-

(250

)

(250

)

TOTAL FUNDS

12,858

(12,808

)

50

Comparatives for movement in funds

Net

movement

At

At 1.1.19

in funds

31.12.19

£

£

£

Unrestricted funds

General fund

35,584

(3,049

)

32,535

Restricted funds

Improvements to Multiple Sclerosis therapy centre

9,059

(228

)

8,831

Highland Cross - vibro gyms

213

(26

)

187

9,272

(254

)

9,018

TOTAL FUNDS

44,856

(3,303

)

41,553

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

13,603

(16,652

)

(3,049

)

Restricted funds

Improvements to Multiple Sclerosis therapy centre

-

(228

)

(228

)

Highland Cross - vibro gyms

-

(26

)

(26

)

-

(254

)

(254

)

TOTAL FUNDS

13,603

(16,906

)

(3,303

)

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

Net

movement

At

At 1.1.19

in funds

31.12.20

£

£

£

Unrestricted funds

General fund

35,584

(2,749

)

32,835

Restricted funds

Improvements to Multiple Sclerosis therapy centre

9,059

(456

)

8,603

Highland Cross - vibro gyms

213

(48

)

165

9,272

(504

)

8,768

TOTAL FUNDS

44,856

(3,253

)

41,603

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

26,461

(29,210

)

(2,749

)

Restricted funds

Improvements to Multiple Sclerosis therapy centre

-

(456

)

(456

)

Highland Cross - vibro gyms

-

(48

)

(48

)

-

(504

)

(504

)

TOTAL FUNDS

26,461

(29,714

)

(3,253

)

The Improvements to Multiple Sclerosis therapy centre and Highland Cross - vibro gyms restricted funds are held as fixed assets and will be expended as depreciation.

13.	RELATED PARTY DISCLOSURES

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

14.	ULTIMATE CONTROLLING PARTY

The company is limited by guarantee and is controlled by its board of trustees.

15.

COVID-19

In December 2019, a strain of coronavirus (COVID-19) surfaced in China and was declared a Public Health Emergency of International Concern by the World Health Organization in January 2020. The UK lockdown restrictions to combat the COVID 19 pandemic have impacted the operations of the charity's centre and the ability to fundraise.

The directors continue to review the situation and any impact on the company's operations.

16.	GOING CONCERN

The charity is working with the Skye and Lochalsh Council for Voluntary Organisations to receive support and assistance to ensure that local inhabitants with multiple sclerosis can continue to benefit from the use of the charity's centre.