The Carloway Community Association - Charities report - 18.1

REGISTERED COMPANY NUMBER: SC409253 (Scotland)

REGISTERED CHARITY NUMBER: SC011809

Report of the Trustees and

Financial Statements for the Year Ended 31 March 2018

for

THE CARLOWAY COMMUNITY ASSOCIATION

THE CARLOWAY COMMUNITY ASSOCIATION

Contents of the Financial Statements

for the Year Ended 31 March 2018

Page

Report of the Trustees

1 to 3

Independent Examiner's Report

4

Statement of Financial Activities

5

Balance Sheet

6 to 7

Notes to the Financial Statements

8 to 13

THE CARLOWAY COMMUNITY ASSOCIATION

Report of the Trustees

for the Year Ended 31 March 2018

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 2018. 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 2015).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The company's objects are:

(a) To promote the well-being of the community resident in the Carloway Community Association catchment area

(Tolsta a'Chaolais to Dalmore) without distinction of sex or of politics, religion or other opinions, by associating with

the Local Authority, Partner Organisations and Residents and Businesses in a common effort to further health, to

advance education, to promote a meeting place and facilities for physical and mental training and recreation and social,

moral and intellectual development, and to foster a community spirit for the achievement of these and other such objects

as may by law be deemed to be charitable;

(b) To maintain and manage a community owned and community led facility, for the advancement of such

environmental, cultural, heritage, sporting, social or other activities as may be promoted by the Company and its

constituent bodies in furtherance of the above objects, or any of them.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The Community Centre has this year continued to provide a venue and focus for many community organisations, groups

and activities, and it also remains the only facility in the Carloway area that is an indoor sports venue.

The Association hosted a celebration to mark the history of the Sgoil Chàrlabhaigh and it's future as a community centre.

The Centre hosted the annual Carloway Show, which is the main annual event in Carloway, and has been the venue for

dinners, social events and many fundraising activities as well as private parties and by the Churches for joint praise

nights

The play park continues to provide a play area for the younger children of the district.

The Directors would like to thank all members of the community who have supported the Association in the above

achievements.

Purchase of Carloway School and Appointments.

During the year the charity purchased the former Carloway School from Comhairle nan Eilean Siar. The Company

appointed a Project Manager to lead the development of the Centre incorporating both School and community centre

and commissioned Architects to design a new Centre. The Design Team are yet to report their design recommendations.

These achievements were with the benefit of grant funding from the Scottish Land Fund. The Company also appointed a

Development Officer with grant funding gained from Highland and Islands Enterprise (HIE). Further grant funding was

gained from HIE for the development of a digital heritage project.

FINANCIAL REVIEW

Reserves policy

The principle funding source for the Company Limited by Guarantee continues to be hall letting income, local

government grants and fundraising activities income. The directors of the new Company Limited by Guarantee will

continue to maintain the previous policy to hold at least £5,000 in a Reserve Account which is yet to be opened. The

current holdings in the single account for the new Company Limited by Guarantee are in excess of this reserve.

FUTURE PLANS

The main focus of the Association in the year ahead will be the consultation with the community on Design team

proposals and taking recommendations to full planning approval. The Association will develop a comprehensive

funding portfolio to bring to fruition Association and community aspirations.

Meanwhile, the school is being used for a variety of purposes - office space for staff attached to Urras Oighreachd

Charlabhaigh (Carloway Estate Trust) and Urras nan Tursachan (The Standing Stones Trust), a local musician, choir

practices, meeting spaces and a very successful 'Bazaar' and occasional café run by volunteers through the Association.

These activities help defray the costs associated with the heating and maintenance of the buildings. The Association

Office is housed in the Community Centre.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

Carloway Community Association incorporated as a Company Limited by Guarantee on 12 October 2011 (Company no

SC409253).

The organisation was constituted as an unincorporated charity at an A.G.M. at Carloway Community Centre on 15

December 1998. The constitution was subsequently amended on 8 January 2003, and on 19 July 2007. On 27 January

2018 at a special EGM called by Directors, new Articles of Association were approved by Members. These have now

been lodged at Companies House and with the Office of the Scottish Charity Regulator (OSCR). The Articles broadly

reflect the previous Articles but extend the Objects with the inclusion of the former School site.

Recruitment and appointment of new trustees

The maximum number of directors shall be 12 of whom no more than 4 may be co-opted, and no more than 3

Nominated. The minimum number of Directors shall be 4, of whom 2 must be elected. One third of the Elected

Directors shall be subject to retirement annually at every General Meeting but shall be eligible for re-election. The

Elected Directors of the Company shall be elected by the Members at the Annual General Meeting.

Organisational structure

In addition to the Board of Directors, membership of the Association is open to Ordinary, Junior, Nominated and

Associate Members, and the Articles allow for formalising this. Directors may, at their discretion, refuse to admit any

person to membership. Membership will not be refused or withheld without good cause and explanation, and

membership may not be refused, restricted or withheld on the basis of gender, age (except where section 12(ii) applies),

ethnic background, disability, caring responsibilities, sexual orientation, religious belief or marital status.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate

controls are in place to provide reasonable assurance against fraud and error.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

SC409253 (Scotland)

Registered Charity number

SC011809

Registered office

Carloway Community Centre

Knock

Carloway

Isle of Lewis

HS2 9AU

Trustees

D M Mackay

I D M Macleod

M M Steele

C Mayers

E F M Mackay

S W James

M Morrison

- appointed 30.5.17

S Macmillan

- appointed 30.5.17

I Macarthur

- appointed 12.2.18

M Macarthur

- appointed 12.2.18

J F Ingram

- resigned 30.1.18

Company Secretary

M M Steele

Independent examiner

A Cumming

Fellow - Association of Chartered Certified Accountants

Mann Judd Gordon Ltd

Chartered Accountants

26 Lewis Street

Stornoway

Isle of Lewis

HS1 2JF

STATEMENT OF TRUSTEES RESPONSIBILITIES

The trustees (who are also the directors of The Carloway Community Association 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 23 May 2018 and signed on its behalf by:

D M Mackay - Trustee

Independent Examiner's Report to the Trustees of

The Carloway Community Association

I report on the accounts for the year ended 31 March 2018 set out on pages five to thirteen.

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. 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.

A Cumming

Fellow - Association of Chartered Certified Accountants

Mann Judd Gordon Ltd

Chartered Accountants

26 Lewis Street

Stornoway

Isle of Lewis

HS1 2JF

23 May 2018

THE CARLOWAY COMMUNITY ASSOCIATION

Statement of Financial Activities

for the Year Ended 31 March 2018

Period

1.4.15

Year Ended

to

31.3.18

31.3.17

Unrestricted fund

Restricted funds

Endowment fund

Total funds

Total funds

Notes

£

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

3

11,191

87,496

-

98,687

29,894

Other trading activities

4

11,364

1

-

11,365

6,193

Total

22,555

87,497

-

110,052

36,087

EXPENDITURE ON

Charitable activities

Charitable activities

26,983

51,401

-

78,384

28,147

Feasibility Study

-

-

-

-

10,602

Total

26,983

51,401

-

78,384

38,749

NET INCOME/(EXPENDITURE)

(4,428

)

36,096

-

31,668

(2,662

)

RECONCILIATION OF FUNDS

Total funds brought forward

19,479

83,988

-

103,467

106,129

TOTAL FUNDS CARRIED FORWARD

15,051

120,084

-

135,135

103,467

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

THE CARLOWAY COMMUNITY ASSOCIATION

Balance Sheet

At 31 March 2018

31.3.18

31.3.17

Unrestricted fund

Restricted funds

Endowment fund

Total funds

Total funds

Notes

£

£

£

£

£

FIXED ASSETS

Tangible assets

9

6,740

98,475

-

105,215

90,910

CURRENT ASSETS

Debtors

10

1,802

3,797

-

5,599

2,077

Cash at bank and in hand

8,888

30,200

-

39,088

12,101

10,690

33,997

-

44,687

14,178

CREDITORS

Amounts falling due within one year

11

(2,379

)

(12,388

)

-

(14,767

)

(1,621

)

NET CURRENT ASSETS

8,311

21,609

-

29,920

12,557

TOTAL ASSETS LESS CURRENT LIABILITIES

15,051

120,084

-

135,135

103,467

NET ASSETS

15,051

120,084

-

135,135

103,467

FUNDS

12

Unrestricted funds

15,051

19,479

Restricted funds

120,084

83,988

TOTAL FUNDS

135,135

103,467

The charitable company is entitled to exemption from audit under

Section 477 of the Companies Act 2006 for the year ended 31 March 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended

31 March 2018 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

special provisions of Part 15 of the Companies Act 2006 relating to

charitable small companies.

The financial statements were approved by the Board of Trustees on 23 May 2018 and were signed on its behalf by:

I D M Macleod -Trustee

THE CARLOWAY COMMUNITY ASSOCIATION

Notes to the Financial Statements

for the Year Ended 31 March 2018

1.	STATUTORY INFORMATION

The Carloway Community Association is company limited by guarantee, registered in Scotland. The company's

registered number and registered office address can be found on the Company Information page.

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 2015)',

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 presentation currency of the accounts is Pound sterling (£). The accounts are rounded to the nearest £1.

Significant judgements and estimates

The areas of the accounts where significant judgements and estimates are used are as follows:

- Fixed assets - estimates are made of both the useful economic life of assets and of any residual value attached

to those assets which in turn determines the depreciation rates and charges in the accounts.

The charity 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 Section 3 Financial Statement Presentation paragraph 3.17(d);

-

the requirements of Section 11 Financial Instruments paragraphs 11.41(b), 11.41(c), 11.41(e), 11.41(f), 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 Section 12 Other Financial Instruments paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

-

the requirement of Section 33 Related Party Disclosure paragraph 33.7.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it

is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the

charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and

the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has

been classified under headings that aggregate all cost related to the category. Where costs cannot be directly

attributed to particular headings they have been allocated to activities on a basis consistent with the use of

resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful

life.

Long leasehold

- 10% on cost

Improvements to property

- Straight line over 34 years

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.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable

company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

3.	DONATIONS AND LEGACIES

Period

1.4.15

Year Ended

to

31.3.18

31.3.17

£

£

Donations

3,400

315

Grants

88,181

22,052

Caraidean Charlabhaigh

4,509

6,255

Cafe income

2,597

1,272

98,687

29,894

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

Period

1.4.15

Year Ended

to

31.3.18

31.3.17

£

£

Comhairle nan Eilean Siar

250

250

Horshader Power

435

435

Highlands and Islands Enterprise

35,938

11,171

Scottish Land Fund

39,800

7,140

Big Lottery

11,758

1,668

Scottish Community

-

1,388

88,181

22,052

4.	OTHER TRADING ACTIVITIES

Period

1.4.15

Year Ended

to

31.3.18

31.3.17

£

£

Functions income

505

220

Hall lettings

10,340

5,563

Auction & other income

520

410

11,365

6,193

5.	NET INCOME/(EXPENDITURE)

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

Period

1.4.15

Year Ended

to

31.3.18

31.3.17

£

£

Depreciation - owned assets

4,211

4,212

6.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2018 nor for the period

ended 31 March 2017.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2018 nor for the period ended

31 March 2017.

7.	STAFF COSTS

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

Period

1.4.15

Year Ended

to

31.3.18

31.3.17

Development officer

1

-

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

8.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted fund

Restricted funds

Endowment fund

Total funds

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

11,482

18,412

-

29,894

Other trading activities

6,193

-

-

6,193

Total

17,675

18,412

-

36,087

EXPENDITURE ON

Charitable activities

Charitable activities

15,400

12,747

-

28,147

Feasibility Study

998

9,604

-

10,602

Total

16,398

22,351

-

38,749

NET INCOME/(EXPENDITURE)

1,277

(3,939

)

-

(2,662

)

RECONCILIATION OF FUNDS

Total funds brought forward

18,202

87,927

-

106,129

TOTAL FUNDS CARRIED FORWARD

19,479

83,988

-

103,467

9.	TANGIBLE FIXED ASSETS

Long leasehold

Improvements to property

Computer equipment

Totals

£

£

£

£

COST

At 1 April 2017

104,494

143,200

-

247,694

Additions

12,640

-

5,876

18,516

At 31 March 2018

117,134

143,200

5,876

266,210

DEPRECIATION

At 1 April 2017

104,494

52,290

-

156,784

Charge for year

-

4,211

-

4,211

At 31 March 2018

104,494

56,501

-

160,995

NET BOOK VALUE

At 31 March 2018

12,640

86,699

5,876

105,215

At 31 March 2017

-

90,910

-

90,910

10.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.18

31.3.17

£

£

Trade debtors

5,053

1,573

Prepayments

546

504

5,599

2,077

11.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.18

31.3.17

£

£

Trade creditors

14,047

-

Creditors and accruals

720

1,621

14,767

1,621

12.	MOVEMENT IN FUNDS

At 1.4.17

Net movement in funds

At 31.3.18

£

£

£

Unrestricted funds

General fund

19,479

(4,428

)

15,051

Restricted funds

Capital fund

83,988

8,701

92,689

General fund

-

27,395

27,395

83,988

36,096

120,084

TOTAL FUNDS

103,467

31,668

135,135

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

Incoming resources

Resources expended

Movement in funds

£

£

£

Unrestricted funds

General fund

22,555

(26,983

)

(4,428

)

Restricted funds

Capital fund

12,640

(3,939

)

8,701

General fund

74,857

(47,462

)

27,395

87,497

(51,401

)

36,096

TOTAL FUNDS

110,052

(78,384

)

31,668

Comparatives for movement in funds

At 1.4.15

Net movement in funds

At 31.3.17

£

£

£

Unrestricted Funds

General fund

18,202

1,277

19,479

Restricted Funds

Capital fund

87,927

(3,939

)

83,988

TOTAL FUNDS

106,129

(2,662

)

103,467