Western Isles Development Trust - Charities report - 18.1

REGISTERED COMPANY NUMBER: SC271462 (Scotland)

REGISTERED CHARITY NUMBER: SC044637

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED

31 AUGUST 2017

FOR

WESTERN ISLES DEVELOPMENT TRUST

WESTERN ISLES DEVELOPMENT TRUST

CONTENTS OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2017

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 12

WESTERN ISLES DEVELOPMENT TRUST

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 AUGUST 2017

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 August 2017. 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 main objectives of the charity are:

- the prevention or relief of poverty in the Western Isles (the "Western Isles Community") including, without limitation,

the provision of support and grants to organisations and individuals working to prevent or relieve poverty including

through energy efficient schemes and:

- the advancement of education including, without limitation, the provision, maintenance and improvement of

educational facilities and raising awareness in relation to energy and energy-related issues that are driving global,

national and local change;

- the advancement of environmental protection or improvement, including, without limitation, supporting a

forward-looking environmental enhancement approach and the provision, maintenance and improvement of

environmental facilities;

- the advancement of citizenship and community development including, without limitation, urban or rural regeneration,

maintenance and improvement of the physical and social infrastructure within the environs of the Western Isles,

including supporting the aspirations of local communities and the provision, maintenance and improvement of

recreational facilities;

- the advancement of the arts, heritage, culture or science including, without limitation, the provision, maintenance and

improvement of recreational and cultural facilities and raising awareness of the Gaelic language; and

- animal welfare.

Grantmaking

Grants awarded

Group

Amount

£

Western Isles Community Care Forum

8,000

Community Energy Scotland

43,446

Pairc Trust

10,000

Carloway Estate Trust

3,750

65,196

Grants awarded from Transocean Funds

Group

Amount

£

Lewis & Harris Sports Council

20,000

Uist & Barra Sports Council

10,000

Transocean Dalmore Fund

3,000

33,000

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The purpose of the Trust is to support the regeneration and development of the Outer Hebrides through disbursement of

community benefit secured from the local deployment of renewable energy installations. This community benefit will

come from a range of technologies, predominately onshore wind, offshore wind, wave and tidal. Over time and as grid

connectivity allows, the Trust will expand its activities to support community ownership of large scale renewable energy

infrastructure with the objective of addressing fuel poverty through access to locally generated "green" electricity.

FINANCIAL REVIEW

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 the free reserves in unrestricted funds at 31 August 2017 is sufficient to

meet the operational requirements of the charity as presently structured.

During the year the charity's incoming resources exceeded outgoing resources resulting in net surplus of £83,666 for the

period (2016 - deficit of £17,671). This results in an decrease of £1,503 in unrestricted funds and an increase of £85,169

in restricted funds. Unrestricted reserves has as a result decreased to £1,072.

During the year £120,000 was received from the company Transocean Ltd. Half of these monies are to be distributed

specifically for islanders participating in sporting events. The other half is being held specifically for the Dalbeg and

Dalmore communities.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Association is a charitable company limited by guarantee, incorporated on 2 August 2004 and registered as a charity

with effect from 11 February 2014. 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, unless otherwise determined by ordinary resolution of

the company, the number of directors shall not be more than 20 and not less than 7. Where there are only 7 directors

appointed, 2 of those 7 directors must be elected directors.

The nominated members shall be entitled to appoint up to a maximum of 12 people to be directors of the company.

The ordinary members shall be entitled to appoint 8 directors of the company and, unless otherwise determined by the

directors:-

- two directors appointed by the ordinary members shall, in the case of an individual, be ordinarily resident in Barra or, in

the case of a corporate body, shall have a presence in Barra, and:

- two directors appointed by the ordinary members shall, in the case of an individual, be ordinarily resident in Harris or, in

the case of a corporate body, shall have a presence in Harris, and:

- two directors appointed by the ordinary members shall, in the case of an individual, be ordinarily resident in Lewis or, in

the case of a corporate body, shall have a presence in Lewis, and:

- two directors appointed by the ordinary members shall, in the case of an individual, be ordinarily resident in Uist or, in

the case of a body corporate, shall have a presence in Uist.

Subject to Article 23, each elected director shall serve for a maximum period of three years from the date of appointment

as a director. At the end of this period, that elected director shall immediately resign but shall be eligible for

re-appointment for subsequent periods of up to three years.

Organisational structure

The board consists of voluntary directors who manage the affairs of the charity through regular board meetings. The

board members are heavily involved in the day to day operations of the charity.

Induction and training of new trustees

The charity will train trustees as necessary 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.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

SC271462 (Scotland)

Registered Charity number

SC044637

Registered office

c/o Council Offices

Sandwick Road

Stornoway

Isle of Lewis

HS1 2BW

Trustees

A Campbell

Chair

- resigned 17.5.17

N A Macdonald

Chair

I Mackenzie

- resigned 17.5.17

A D Muir

Ms C M Bell

Vice Chair

D E Cameron

K Dodson

- resigned 23.3.18

I M Maciver

C M Macleay

- resigned 8.8.17

H Macleod

Ms C M Macneil

- resigned 23.3.18

S D Wilson

Mrs R L Mackenzie

J Macleod

- resigned 23.3.18

A D Dick

- resigned 23.3.18

G Murray

- resigned 17.5.17

N Macdonald

- appointed 17.5.17

D J Mackay

- appointed 17.5.17

I A Macneil

- appointed 13.6.17

C I Maclean

- appointed 13.6.17

A K Mackenzie

- appointed 23.3.18

D Morrison

- appointed 23.3.18

J G Mitchell

- appointed 23.3.18

C J Mackay

- appointed 23.3.18

Ms J A Morrison-Ross

- appointed 23.3.18

A V Walker

- appointed 23.3.18

R J M Jardine

- appointed 23.3.18

Corporate Trustee

Coimhearsachd Bharraigh agus Bhatarsaidh - appointed 23.3.18

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 29 May 2018 and signed on its behalf by:

N A Macdonald - Trustee

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF

WESTERN ISLES DEVELOPMENT TRUST

I report on the accounts for the year ended 31 August 2017 set out on pages six to twelve.

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.

Calum Macdonald

Chartered Accountant/ICAS

CIB Services

Chartered Accountants

63 Kenneth Street

Stornoway

Isle of Lewis

Western Isles

HS1 2DS

29 May 2018

WESTERN ISLES DEVELOPMENT TRUST

STATEMENT OF FINANCIAL ACTIVITIES

(INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 AUGUST 2017

31.8.17

31.8.16

Unrestricted fund

Restricted funds

Total funds

Total funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

30

193,365

193,395

40,400

Total

30

193,365

193,395

40,400

EXPENDITURE ON

Charitable activities

3

Charitable Activities

1,533

108,196

109,729

58,071

NET INCOME/(EXPENDITURE)

(1,503

)

85,169

83,666

(17,671

)

RECONCILIATION OF FUNDS

Total funds brought forward

2,575

347,054

349,629

367,300

TOTAL FUNDS CARRIED FORWARD

1,072

432,223

433,295

349,629

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

WESTERN ISLES DEVELOPMENT TRUST

BALANCE SHEET

AT 31 AUGUST 2017

31.8.17

31.8.16

Notes

£

£

CURRENT ASSETS

Debtors

6

10,000

10,000

Cash at bank

450,692

398,869

460,692

408,869

CREDITORS

Amounts falling due within one year

7

(27,397

)

(59,240

)

NET CURRENT ASSETS

433,295

349,629

TOTAL ASSETS LESS CURRENT LIABILITIES

433,295

349,629

NET ASSETS

433,295

349,629

FUNDS

9

Unrestricted funds

1,072

2,575

Restricted funds

432,223

347,054

TOTAL FUNDS

433,295

349,629

The charitable company is entitled to exemption from audit under

Section 477 of the Companies Act 2006 for the year ended 31 August 2017.

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

31 August 2017 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 29 May 2018 and were signed on its behalf by:

N A Macdonald -Trustee

Ms C M Bell -Trustee

WESTERN ISLES DEVELOPMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2017

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 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.

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.

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.

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

31.8.17

31.8.16

£

£

Donations

193,365

40,390

Subscriptions

30

10

193,395

40,400

3.	CHARITABLE ACTIVITIES COSTS

Direct costs

Grant funding of activities

Support costs

Totals

£

£

£

£

Charitable Activities

759

108,196

774

109,729

4.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2017 nor for the year ended

31 August 2016.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2017 nor for the year ended

31 August 2016.

5.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted fund

Restricted funds

Total funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

10

40,390

40,400

Total

10

40,390

40,400

EXPENDITURE ON

Charitable activities

Charitable Activities

-

58,071

58,071

Total

-

58,071

58,071

NET INCOME/(EXPENDITURE)

10

(17,681

)

(17,671

)

RECONCILIATION OF FUNDS

Total funds brought forward

2,565

364,735

367,300

TOTAL FUNDS CARRIED FORWARD

2,575

347,054

349,629

6.	DEBTORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.8.17

31.8.16

£

£

Other debtors

10,000

10,000

7.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.8.17

31.8.16

£

£

Trade creditors

25,121

56,982

Other creditors

1,502

1,502

Accrued expenses

774

756

27,397

59,240

8.	ANALYSIS OF NET ASSETS BETWEEN FUNDS

31.8.17

31.8.16

Unrestricted fund

Restricted funds

Total funds

Total funds

£

£

£

£

Current assets

3,469

457,223

460,692

408,869

Current liabilities

(2,397

)

(25,000

)

(27,397

)

(59,240

)

1,072

432,223

433,295

349,629

9.	MOVEMENT IN FUNDS

At 1.9.16

Net movement in funds

At 31.8.17

£

£

£

Unrestricted funds

General fund

2,575

(1,503

)

1,072

Restricted funds

Restricted fund

347,054

(1,831

)

345,223

Transocean Fund

-

87,000

87,000

347,054

85,169

432,223

TOTAL FUNDS

349,629

83,666

433,295

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

Incoming resources

Resources expended

Movement in funds

£

£

£

Unrestricted funds

General fund

30

(1,533

)

(1,503

)

Restricted funds

Restricted fund

73,365

(75,196

)

(1,831

)

Transocean Fund

120,000

(33,000

)

87,000

193,365

(108,196

)

85,169

TOTAL FUNDS

193,395

(109,729

)

83,666

Comparatives for movement in funds

At 1.9.15

Net movement in funds

At 31.8.16

£

£

£

Unrestricted Funds

General fund

2,565

10

2,575

Restricted Funds

Restricted fund

364,735

(17,681

)

347,054

TOTAL FUNDS

367,300

(17,671

)

349,629

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

Incoming resources

Resources expended

Movement in funds

£

£

£

Unrestricted funds

General fund

10

-

10

Restricted funds

Restricted fund

40,390

(58,071

)

(17,681

)

TOTAL FUNDS

40,400

(58,071

)

(17,671

)

FUNDS

General fund

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

charitable objects.

Restricted fund

This represents community benefit funds secured from the local deployment of renewable energy installations.

The funds will be utilised to support the regeneration and development of the Outer Hebrides.

Transocean fund

This represents funds gifted from Transocean Ltd held for distribution to individuals and the communities of

Dalmore and Dalbeg.

10.	RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 August 2017.

11.	LIMITED BY GUARANTEE

The company is limited by guarantee and has no share capital. The liability of each member, in the event of the

company being wound up, is restricted to £1.

12.	PERMANENT ENDOWMENTS

The charity does not have any permanent endowments.