Crathie Opportunity Holidays - Charities report - 22.2

REGISTERED COMPANY NUMBER: SC182878 (Scotland)

REGISTERED CHARITY NUMBER: SC027590

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 March 2023

for

Crathie Opportunity Holidays

(A Company Limited by Guarantee)

Page

Report of the Trustees

1

to

3

Independent Examiner's Report

4

Statement of Financial Activities

5

Statement of Financial Position

6

to

7

Notes to the Financial Statements

8

to

15

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 2023. 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 activity of Crathie Opportunity Holidays is to provide self-catering holidays for disabled people and their families and friends. To achieve this, the four cottages, landscaping and play areas have all been designed and equipped to enable access for a wide range of adults and children.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

For the first time in three years our four holiday cottages were able to operate through the full year with no restrictions. Occupancy benefited from this and from a degree of post-Covid bounce in bookings from those who had forgone holidays for a year or two. Cottage income and occupancy were at an all-time high. The summer period was fully occupied as usual however we also had buoyant shoulder seasons. Our guests seemed to enjoy the different attractions of spring and autumn in the riverside garden setting and hopefully some will choose to return at those times.

Our digital marketing strategy, with advertising focused on key booking periods and gaps in our schedule, continues to bring in new guests to add to the approximately 50% returning visitors we see year on year.

With pandemic restrictions largely gone we have been able to resume our maintenance and refurbishment programme. This year we replaced two electric height-adjustable beds, purchased a Sara Stedy stand-aid and installed Alexa Dots in each cottage, thanks to the suggestion and fundraising from Gregor Smith.

The housekeeping team has been stable through the year. Having a steady team adds to the sense of Crathie Opportunity Holidays as an enjoyable place to work and holiday. The Trustees recognise how much the staff add to the experience for all. We also employed Gregor Smith for a three month work experience placement.

Fundraising activities

Successful fundraising allows us to offer a supported environment for guests with disabilities, without any price premium to cover specialist equipment and on-site management. With that in mind we were pleased to be able to resume the fundraising aspect of our programme. Our traditional film night resumed during Ballater Victoria week, we added a Braemar film night, the always popular golf outing to Balmoral returned and 200 Club participation remained strong. In addition we are grateful to receive a number of significant donations.

Volunteers also contribute in ways that add to guests enjoyment and save money we would otherwise have to spend. The garden group has been boosted by some new members with different skills and ideas, and the weekly coffee mornings allow guests to once again chat with our neighbours who drop in and bring the much appreciated home-bakes.

FINANCIAL REVIEW

Financial position

This year there was a considerable increase in income, resulting in a net surplus of £14,721 (compared with a deficit of £20,701 in the previous year).

Income and Expenditure

There was an encouraging increase in income to £121,139 (£104,085 in the previous year) as a result of more activity in the year. This was the first year since the pandemic where 0 days were affected by restrictions. This meant an operating surplus (before depreciation) of £26,790.

Donation, legacy and grant income has increased to £18,722 this year. This is due to a significant increase in donations to £14,739. There were no covid grants this year and hence grants received have fallen. Rental income has risen to £83,811 this year as this was the first year where the full 365 days were not affected by covid. Other income of £2,006 includes renewable heat incentive. Fundraising event income increased to £15,466.

Expenditure decreased by just over £18,000 to £106,418 (down from £124,786 in 2022). This is mainly accounted for by decreased depreciation costs. This is expected as depreciation falls in line with assets ageing.

The net surplus of £14,721 for the period is not unusual given the change in circumstances.

Reserves policy

Total reserves (net assets) at 31 March 2023 were £364,210. Those cash reserves not required in the short term are held in long term deposits in a manner expected to generate some income for the benefit of the charity.

Unrestricted Reserves

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six months expenditure which is estimated to be around £60,000. The Trustees considered that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity's current activity while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year. Within unrestricted reserves £130,000 has been designated for future capital expenditure and refurbishment of the cottages.

Fixed Assets and Capital Expenditure

The charity's register of tangible fixed assets (tenants improvements, fixtures and fittings and computer equipment) has been reviewed and updated for additions and disposals and depreciation. The net book value of tangible fixed assets at 31 March 2023 was £116,090.

Capital expenditure in 2022-23 totalled £6,168. Additions were for a motorised bed, a sit-to-stand aid and an overhead hoist. A refurbishment programme has been drawn up identifying renewals and upgrading of fixtures and equipment which will be needed over the next five years. Inevitably there will be some urgent or unforeseen requirements to add to the current list of expected capital outlays.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is a company limited by guarantee and is governed by its Memorandum and Articles of Association.

Recruitment and appointment of new trustees

Ordinary trustees of the charity are appointed for terms of 3 years - which may be renewed - on nomination by the Board or members subject to confirmation at the AGM. A Trustee is also nominated by the Kirk Session of the Church of Scotland Parish of Braemar and Crathie. Each new trustee is presented with a Trustee Handbook which sets out the main roles, duties and responsibilities of a trustee, as well as background information on Crathie Opportunity Holidays.

Financial Records and Accounts

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website and in the Annual Report and communications with members.

Management

Oversight and strategy for the charity are the responsibility of the Board of Trustees and its committees. Maggie MacKay is the manager of the charity and responsible for its day to day running and administrative support to the Board.

Maggie MacKay is the manager of the charity and is responsible for the day to day running of the charitable company.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of accounts may differ from legislation in other jurisdictions.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

SC182878 (Scotland)

Registered Charity number

SC027590

Registered office

The Manse Courtyard

Crathie

Ballater

Aberdeenshire

AB35 5UL

Trustees

T J Kelly

Prof A Macleod

A S Mcnicol

D W Sherrard

Ms S Farquharson

Miss A J Munro

G Feeney

B Lawson

Mrs J Morris (appointed 17.11.22)

Company Secretary

T J Kelly

Independent Examiner

Gillian R Nicolson

The Grant Considine Partnership

Chartered Accountants

46 High Street

Banchory

Aberdeenshire

AB31 5SR

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 7 November 2023 and signed on its behalf by:

T J Kelly - Trustee

I report on the accounts for the year ended 31 March 2023 set out on pages five to fifteen.

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.

Gillian R Nicolson

The Institute of Chartered Accountants of Scotland

The Grant Considine Partnership

Chartered Accountants

46 High Street

Banchory

Aberdeenshire

AB31 5SR

7 November 2023

2023

2022

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations, legacies and grants

3

14,739

3,983

18,722

14,501

Charitable activities

Rental of Holiday Homes

83,811

-

83,811

71,256

Support

1,981

25

2,006

11,027

Other trading activities

4

15,466

-

15,466

5,790

Investment income

5

1,134

-

1,134

1,511

Total

117,131

4,008

121,139

104,085

EXPENDITURE ON

Raising funds

2,286

-

2,286

1,000

Charitable activities

6

Rental of Holiday Homes

60,953

7,394

68,347

83,471

Support

35,785

-

35,785

40,315

Total

99,024

7,394

106,418

124,786

NET INCOME/(EXPENDITURE)

18,107

(3,386

)

14,721

(20,701

)

Transfers between funds

14

5,082

(5,082

)

-

-

Net movement in funds

23,189

(8,468

)

14,721

(20,701

)

RECONCILIATION OF FUNDS

Total funds brought forward

326,906

22,583

349,489

370,190

TOTAL FUNDS CARRIED FORWARD

350,095

14,115

364,210

349,489

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

2023

2022

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

10

107,612

8,478

116,090

121,991

CURRENT ASSETS

Debtors

11

8,256

-

8,256

11,426

Cash at bank and in hand

267,277

5,637

272,914

245,839

275,533

5,637

281,170

257,265

CREDITORS

Amounts falling due within one year

12

(33,050

)

-

(33,050

)

(29,767

)

NET CURRENT ASSETS

242,483

5,637

248,120

227,498

TOTAL ASSETS LESS CURRENT LIABILITIES

350,095

14,115

364,210

349,489

NET ASSETS

350,095

14,115

364,210

349,489

FUNDS

14

Unrestricted funds

350,095

326,906

Restricted funds

14,115

22,583

TOTAL FUNDS

364,210

349,489

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2023 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 7 November 2023 and were signed on its behalf by:

T J Kelly - Trustee

1.	STATUTORY INFORMATION

Crathie Opportunity Holidays is a private charitable company limited by guarantee and registered in Scotland. The charity's registered number, company number and registered office can be found in the Reference and Administration Details section of the Report of the Trustees.

The presentation currency of the financial statements is the Pound Sterling (£). Monetary amounts in these financial statements are rounded to the nearest £.

2.	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.

Financial reporting standard 102 - reduced disclosure exemptions

The charitable company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

the requirement of paragraph 33.7.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the charity's accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying mount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements or estimation uncertainties have a significant effect on amounts recognised in the financial statements:-

Critical Judgements

Depreciation

Depreciation is calculated to fully write off the cost of assets over their estimated useful life. The Trustees estimate the useful life of each asset. Details of the depreciation charge in the period is in note 9.

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.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Grant income is recognised when there is reasonable assurance that the charity will comply with any conditions attaching to the grant and the grant will be received.

Charitable Activity income is recognised when the charity is entitled to it and represents amounts receivable for goods and services provided in the normal course of business.

Other trading income is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business.

Income from short and long term deposits are recognised upon receipt.

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

Tangible fixed assets costing more than £100 are capitalised and carried at cost. Depreciation is calculated to write down the cost, less estimated residual value, of all tangible fixed assets over their expected useful lives. The rates applied are:

Tenants Improvements

5% straight line

Computers

33.3% straight line

Fixtures & Fittings

15% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying amountof the asset, and is recognised in net income/(expenditure) for the year.

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered and impairment loss.

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 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.

Leases

Rentals payable under operating leases, including any lease incentives received, are charged to expenditure on a straight line basis over the term of the relevant lease.

Retirement benefits

Payments to defined contribution retirement benefit schemes are charged to the as an expenses as they fall due.

Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Going concern

At the time of approving the accounts, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the accounts.

3.	DONATIONS, LEGACIES AND GRANTS

2023

2022

£

£

Donations

14,739

2,969

Gift aid

-

431

Grants

3,983

11,101

18,722

14,501

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

2023

2022

£

£

Strategic Framework Business Fund

-

9,000

Coronavirus Job Retention Scheme

-

2,101

Other grants

3,983

-

3,983

11,101

4.	OTHER TRADING ACTIVITIES

2023

2022

£

£

Fundraising events

15,466

5,790

5.	INVESTMENT INCOME

2023

2022

£

£

Deposit account interest

1,134

1,511

6.	CHARITABLE ACTIVITIES COSTS

Direct

Support

Costs

costs

Totals

£

£

£

Rental of Holiday Homes

68,347

-

68,347

Support

33,117

2,668

35,785

101,464

2,668

104,132

7.	NET INCOME/(EXPENDITURE)

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

2023

2022

£

£

Depreciation - owned assets

12,069

38,552

Other operating leases

3,757

2,505

8.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2023 nor for the year ended 31 March 2022.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2023 nor for the year ended 31 March 2022.

9.	STAFF COSTS

2023

2022

£

£

Wages and salaries

36,152

33,653

Other pension costs

1,110

1,053

37,262

34,706

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

2023

2022

Part time

4

4

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

10.	TANGIBLE FIXED ASSETS

Fixtures

Tenants

and

Computer

Improvements

fittings

equipment

Totals

£

£

£

£

COST

At 1 April 2022

671,200

164,226

5,419

840,845

Additions

-

6,168

-

6,168

Disposals

-

(1,460

)

-

(1,460

)

At 31 March 2023

671,200

168,934

5,419

845,553

DEPRECIATION

At 1 April 2022

564,476

148,968

5,410

718,854

Charge for year

7,417

4,643

9

12,069

Eliminated on disposal

-

(1,460

)

-

(1,460

)

At 31 March 2023

571,893

152,151

5,419

729,463

NET BOOK VALUE

At 31 March 2023

99,307

16,783

-

116,090

At 31 March 2022

106,724

15,258

9

121,991

11.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade debtors

430

430

Prepayments and accrued income

7,826

10,996

8,256

11,426

12.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Accruals and deferred income

33,050

29,767

This includes deferred income of £24,165 in respect of deposits and holiday bookings for the period post year end (2022 £23,351).

13.	LEASING AGREEMENTS

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

2023

2022

£

£

Within one year

5,009

5,009

The operating lease represents leases of the office, outbuildings and the ground.

The original lease of the office and outbuildings ran until 28th February 2021 and has been extended until 30th August 2040 but can be cancelled with a year's notice. There is an option for the lease to be extended until 1 March 2060.

The lease of the ground runs until 31 July 2171. This lease terminates if the above lease is terminated.

14.	MOVEMENT IN FUNDS

Net

Transfers

movement

between

At

At 1.4.22

in funds

funds

31.3.23

£

£

£

£

Unrestricted funds

General fund

195,981

18,107

5,082

219,170

Designated Fund

130,925

-

-

130,925

326,906

18,107

5,082

350,095

Restricted funds

Holiday Fund

6,710

25

(1,099

)

5,636

Community Fund

13,276

(6,818

)

-

6,458

Garden Extension Fund

2,597

(576

)

-

2,021

Other Restricted Funds

-

3,983

(3,983

)

-

22,583

(3,386

)

(5,082

)

14,115

TOTAL FUNDS

349,489

14,721

-

364,210

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

117,131

(99,024

)

18,107

Restricted funds

Holiday Fund

25

-

25

Community Fund

-

(6,818

)

(6,818

)

Garden Extension Fund

-

(576

)

(576

)

Other Restricted Funds

3,983

-

3,983

4,008

(7,394

)

(3,386

)

TOTAL FUNDS

121,139

(106,418

)

14,721

Comparatives for movement in funds

Net

movement

At

At 1.4.21

in funds

31.3.22

£

£

£

Unrestricted funds

General fund

209,215

(13,234

)

195,981

Designated Fund

130,925

-

130,925

340,140

(13,234

)

326,906

Restricted funds

Holiday Fund

6,710

-

6,710

Community Fund

20,167

(6,891

)

13,276

Garden Extension Fund

3,173

(576

)

2,597

30,050

(7,467

)

22,583

TOTAL FUNDS

370,190

(20,701

)

349,489

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

104,084

(117,318

)

(13,234

)

Restricted funds

Holiday Fund

1

(1

)

-

Community Fund

-

(6,891

)

(6,891

)

Garden Extension Fund

-

(576

)

(576

)

1

(7,468

)

(7,467

)

TOTAL FUNDS

104,085

(124,786

)

(20,701

)

Designated funds

Designated funds are funds set aside for future capital expenditure and refurbishment costs of the cottages.

Restricted funds

The income funds of the charity include restricted funds comprising the balances of donations and grants held on trust for specific purposes:-

The Community Fund

The funding was towards the costs of refurbishment and construction work, professional fees and the installation of services. All money received has been spent, the balance of the fund represents the net book value of the asset.

The expenditure is on a 5% straight line basis to match the depreciation rate of the tenants improvements.

The Holiday Fund

The funding received is held for complimentary holidays. The expenditure in the period is matched against the cost of any complimentary holidays given to guests in the period.