North Uist Development Company - Charities report - 22.2

REGISTERED COMPANY NUMBER: SC383175 (Scotland)

REGISTERED CHARITY NUMBER: SC41709

Report of the Trustees and

Financial Statements for the Year Ended 31 March 2023

for

NORTH UIST DEVELOPMENT COMPANY

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

16

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 aims of the Charity are to promote the social, educational, cultural, economic and environmental well being of the people of the Uists and in particular the residents of the area known as North Uist and having postcode HS6, by all or any of the following means:-

(a) The promotion of community development, including rural regeneration, following the principles of sustainable development, where "sustainable development" means development which meets the needs of the present without compromising the ability of future generations to meet their own needs;

(b) The provision of assistance to people who are disadvantaged by reason of age, ill-health, disability, financial or other disadvantage;

(c) The promotion of education, including all forms of training for work and life skills;

(d) The advancement of the arts, culture and heritage, including support for the Gaelic arts and protection of buildings and sites of architectural or historical importance;

(e) The provision and support of recreational activities for the community, especially for disadvantaged or vulnerable groups;

(f) The protection and enhancement of the natural heritage and environment;

(g) The relief of poverty in such ways as may be thought fit.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The Charity, North Uist Development Company (NUDC) has operated during this year, without the benefit of any employees following the withdrawal of HIE funding support at March 2022. Efforts to attract alternative funding for replacement of this post have to date been unsuccessful, restricting the ability of the trustees to carry out a broad programme of projects.

During 2023 the Board focussed on two main areas. These are:

- restoration of the old Lochmaddy School as an environment centre and community resource;

- working in partnership with Uist Wind to progress towards achieving community benefit for North Uist from the

locally - owned wind turbines.

Old Lochmaddy School

The Directors have continued to develop the old Lochmaddy School for a wide range of uses. Essential infrastructure work has been carried out which allows for extended use of the community spaces. This has been made possible primarily with financial assistance from Comhairle nan Eilean Siar's Strategic Community Investment Fund. A programme of events is being developed to be run in conjunction with the opening of the exhibition for the summer season.

The trustees rely on assistance from a group of volunteers.

Rentals from a number of tenants contribute towards the upkeep of the building.

Partnership with Uist Wind

The Development Company is represented on the Management Committee of North Uist Development Company (Trading), commonly known as Uist Wind, who manage operation of the North Uist wind farm. NUDC's main role now is to oversee distribution of the funds accrued from the wind turbines as community benefit.

Work on drafting a joint agreement between the two charities was begun however it was put on hold while a question raised by the auditors for NUDC (T) accounts, regarding funds owed to NUDC, was resolved.

The situation arose when the Community Benefit Company was created in 2018 with the consequential split between the NUDC Charity accounts and the newly created NUDC(T) Community Benefit Society accounts. As a consequence of extensive discussions between accountants, at its meeting of 12 May 2023, the Trustees agreed to release the balance of £35,983 due from NUDC (T) and that the balance due accounted for in the NUDC completed accounts for 2021/22 would be removed as part of preparation of the NUDC 2022/23 accounts.

Over the next year, the terms of a joint agreement with Uist Wind will be finalised that will allow NUDC to commence work on developing a framework for distribution of community benefit funds.

FINANCIAL REVIEW

Financial position

Results for the year

The results for the year show reduced income, declining to £24,993 from £104,675 in 2022. Much of this is due to restricted grant funding received in 2022 which has not been replicated in 2023.

Expenditure in the year has decreased on 2022 from £72,371 to £53,189 in 2023.

The result overall is a deficit on the general unrestricted funds of £30,639, after accountign for the NUDC(T) loan write off, with surplus of £2,443 on the restricted funds.

Overall position

Overall funds being carried forward stand at £217,498of which £19,720 is unrestricted and £197,778 is restricted.

Reserves policy

As the charity is still in its infancy no formal reserves policy has been established yet.

Fraud

During the year ended 31 March 2021 the charity was subjected to a fraud by a 3rd party which impersonated the charity's bank to obtain funds fraudulently from the charity.

The charity lost the sum of £7,638 as a result of the fraud.

The Trustees are pleased to announce that the funds that were fraudulently obtained from the charity were reimbursed by the bank in April 2022 and are included within other income in the 2023 accounts.

FUTURE PLANS

The Trustees will continue to explore all opportunities to put in place projects to bring long term funding to help to develop the fragile economy of North Uist.

It will do this by continuing to promote projects which have the potential to bring transformational benefit to the community.

The current Community Development Plan (2018 - 2023) is due for review and update. Should suitable resources become available, work will start on this, including consultation with the local community to establish its priorities. This work will feed into development of the framework for distribution of the Community Benefit Fund once available.

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.

Recruitment and appointment of new trustees

All trustees are appointed or re-appointed at the annual general meeting.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

SC383175 (Scotland)

Registered Charity number

SC41709

Registered office

Claddach Kirkibost Centre

Isle Of North Uist

Western Isles

HS6 5EP

Trustees

A H Campbell

J B Archer

P Keiller

M M Coull

M Macdonald (resigned 20.9.23)

D Mcpherson

Independent Examiner

Mann Judd Gordon Ltd

Chartered Accountants

26 Lewis Street

Stornoway

Isle of Lewis

HS1 2JF

Approved by order of the board of trustees on 7 December 2023 and signed on its behalf by:

D Mcpherson - Trustee

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

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.

John E Moffat

The Institute of Chartered Accountants in England and Wales

Mann Judd Gordon Ltd

Chartered Accountants

26 Lewis Street

Stornoway

Isle of Lewis

HS1 2JF

7 December 2023

31.3.23

31.3.22

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

15,521

9,472

24,993

104,675

Investment income

3

-

-

-

2

Total

15,521

9,472

24,993

104,677

EXPENDITURE ON

Charitable activities

Charitable activities

44,109

7,029

51,138

69,126

Governance costs

2,051

-

2,051

1,565

Other

-

-

-

1,680

Total

46,160

7,029

53,189

72,371

NET INCOME/(EXPENDITURE)

(30,639

)

2,443

(28,196

)

32,306

RECONCILIATION OF FUNDS

Total funds brought forward

50,359

195,335

245,694

213,388

TOTAL FUNDS CARRIED FORWARD

19,720

197,778

217,498

245,694

31.3.23

31.3.22

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

9

1,915

169,289

171,204

162,897

CURRENT ASSETS

Debtors

10

434

-

434

37,690

Cash at bank

21,361

28,489

49,850

73,856

21,795

28,489

50,284

111,546

CREDITORS

Amounts falling due within one year

11

(3,990

)

-

(3,990

)

(28,749

)

NET CURRENT ASSETS

17,805

28,489

46,294

82,797

TOTAL ASSETS LESS CURRENT LIABILITIES

19,720

197,778

217,498

245,694

NET ASSETS

19,720

197,778

217,498

245,694

FUNDS

12

Unrestricted funds

19,720

50,359

Restricted funds:

Scottish Land Fund

12,038

13,982

CnES Crown Estate Lochportain

2,344

4,624

HIE LCTI Toilet Block

27,968

27,968

Inspiring Scotland

96,935

99,740

Launch me

10,000

10,000

Nature Scotland

10,692

10,692

Western Isles Development Trust

10,000

10,000

Awards for all

7,000

7,000

Greening Community Assets

20,801

11,329

197,778

195,335

TOTAL FUNDS

217,498

245,694

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 December 2023 and were signed on its behalf by:

D Mcpherson - Trustee

P Keiller - 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.

The reporting currency of the accounts is the British Pound £.

The accounts are rounded to the nearest £1.

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.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

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

-

not provided

Computer equipment

-

33% depreciaton on cost

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.

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.

2.	DONATIONS AND LEGACIES

31.3.23

31.3.22

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

£

£

£

£

Donations

200

-

200

5,129

Grants

499

9,472

9,971

99,546

Rental income

6,308

-

6,308

-

Exceptional items

8,514

-

8,514

-

15,521

9,472

24,993

104,675

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

31.3.23

31.3.22

£

£

Highlands & Islands Enterprise

9,472

49,282

National Lottery

-

7,000

Nature Scotland

-

28,051

Western Isles Development Trust

-

10,000

British Science Week

499

-

Other grants

-

5,213

9,971

99,546

3.	INVESTMENT INCOME

31.3.23

31.3.22

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

£

£

£

£

Interest received

-

-

-

2

4.	NET INCOME/(EXPENDITURE)

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

31.3.23

31.3.22

£

£

Depreciation - owned assets

297

-

Other operating leases

-

1,680

5.	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.

6.	STAFF COSTS

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

31.3.23

31.3.22

Local development officers

-

2

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

7.	EXCEPTIONAL ITEMS

Income

Reimbursed funds from the bank which were obtained by fraudsters in previous years are included in exceptional income for the year.

Expenditure

As referenced in the Report of the Trustees the Board agreed to write off the intercompany loan between NUDC and NUDC(T). The sum of £35,674 is included in exceptional items as a result.

8.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

funds

funds

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

34,595

70,080

104,675

Investment income

2

-

2

Total

34,597

70,080

104,677

EXPENDITURE ON

Charitable activities

Charitable activities

34,752

34,374

69,126

Governance costs

1,565

-

1,565

Other

1,680

-

1,680

Total

37,997

34,374

72,371

NET INCOME/(EXPENDITURE)

(3,400

)

35,706

32,306

Transfers between funds

15,315

(15,315

)

-

Net movement in funds

11,915

20,391

32,306

RECONCILIATION OF FUNDS

Total funds brought forward

38,443

174,945

213,388

TOTAL FUNDS CARRIED FORWARD

50,358

195,336

245,694

9.	TANGIBLE FIXED ASSETS

Improvements

Long

to

Computer

leasehold

property

equipment

Totals

£

£

£

£

COST

At 1 April 2022

11,928

150,070

899

162,897

Additions

-

9,354

-

9,354

Disposals

-

(750

)

-

(750

)

At 31 March 2023

11,928

158,674

899

171,501

DEPRECIATION

Charge for year

-

-

297

297

NET BOOK VALUE

At 31 March 2023

11,928

158,674

602

171,204

At 31 March 2022

11,928

150,070

899

162,897

10.

DEBTORS

31.3.23

31.3.22

£

£

Amounts falling due within one year:

Trade debtors

433

2,016

Other debtors

1

-

434

2,016

Amounts falling due after more than one year:

Other debtors

-

35,674

Aggregate amounts

434

37,690

11.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.23

31.3.22

£

£

Trade creditors

2,097

26,856

Funds raised owed to Cancer Research

182

182

Accrued expenses

1,711

1,711

3,990

28,749

12.	MOVEMENT IN FUNDS

Net

Transfers

movement

between

At

At 1.4.22

in funds

funds

31.3.23

£

£

£

£

Unrestricted funds

General fund

42,544

(30,639

)

7,815

19,720

HIE DRSG North Uist Development Company AMC Delivery Resource

7,815

-

(7,815

)

-

50,359

(30,639

)

-

19,720

Restricted funds

Scottish Land Fund

13,982

(1,944

)

-

12,038

CnES Crown Estate Lochportain

4,624

(2,280

)

-

2,344

HIE LCTI Toilet Block

27,968

-

-

27,968

Inspiring Scotland

99,740

(2,805

)

-

96,935

Launch me

10,000

-

-

10,000

Nature Scotland

10,692

-

-

10,692

Western Isles Development Trust

10,000

-

-

10,000

Awards for all

7,000

-

-

7,000

Greening Community Assets

11,329

9,472

-

20,801

195,335

2,443

-

197,778

TOTAL FUNDS

245,694

(28,196

)

-

217,498

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

15,521

(46,160

)

(30,639

)

Restricted funds

Scottish Land Fund

-

(1,944

)

(1,944

)

CnES Crown Estate Lochportain

-

(2,280

)

(2,280

)

Inspiring Scotland

-

(2,805

)

(2,805

)

Greening Community Assets

9,472

-

9,472

9,472

(7,029

)

2,443

TOTAL FUNDS

24,993

(53,189

)

(28,196

)

Comparatives for movement in funds

Net

Transfers

movement

between

At

At 1.4.21

in funds

funds

31.3.22

£

£

£

£

Unrestricted funds

General fund

28,565

(1,336

)

15,315

42,544

HIE DRSG North Uist Development Company AMC Delivery Resource

9,878

(2,063

)

-

7,815

38,443

(3,399

)

15,315

50,359

Restricted funds

Scottish Land Fund

19,779

(5,797

)

-

13,982

CnES Crown Estate Lochportain

16,341

(11,717

)

-

4,624

HIE LCTI Toilet Block

25,427

2,541

-

27,968

Inspiring Scotland

100,000

(260

)

-

99,740

NUDC-T Admin Support

13,398

-

(13,398

)

-

Launch me

-

10,000

-

10,000

Nature Scotland

-

12,609

(1,917

)

10,692

Western Isles Development Trust

-

10,000

-

10,000

Awards for all

-

7,000

-

7,000

Greening Community Assets

-

11,329

-

11,329

174,945

35,705

(15,315

)

195,335

TOTAL FUNDS

213,388

32,306

-

245,694

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

5,131

(6,467

)

(1,336

)

HIE DRSG North Uist Development Company AMC Delivery Resource

29,466

(31,529

)

(2,063

)

34,597

(37,996

)

(3,399

)

Restricted funds

Scottish Land Fund

-

(5,797

)

(5,797

)

CnES Crown Estate Lochportain

-

(11,717

)

(11,717

)

HIE LCTI Toilet Block

3,699

(1,158

)

2,541

Inspiring Scotland

1

(261

)

(260

)

Launch me

10,000

-

10,000

Nature Scotland

28,051

(15,442

)

12,609

Western Isles Development Trust

10,000

-

10,000

Awards for all

7,000

-

7,000

Greening Community Assets

11,329

-

11,329

70,080

(34,375

)

35,705

TOTAL FUNDS

104,677

(72,371

)

32,306