Naver Teleservice Centre - Charities report - 18.1

REGISTERED COMPANY NUMBER: SC140712 (Scotland)

REGISTERED CHARITY NUMBER: SC020662

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 March 2018

for

Naver Teleservice Centre

Naver Teleservice Centre

Contents of the Financial Statements

for the Year Ended 31 March 2018

Page

Report of the Trustees

1 to 5

Independent Examiner's Report

6

Statement of Financial Activities

7

Balance Sheet

8 to 9

Notes to the Financial Statements

10 to 14

Naver Teleservice Centre

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 principal activities of the company are the relief of poverty through the advancement of

education and promotion of employment and economic activity for the benefit of the community

through the provision of a community teleservice centre (a telecottage) that provides the necessary

accommodation for these activities to take place.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

1. The NTC continues to provide office space and facilities to enable organisations to operate for

the benefit of the local community. Provision of a regular weekend book session for younger

children has been proposed via Highlife Highland and supported by the Board.

2. The NTC continues to provide free access to computer technology and the internet ensuring that

all facilities are kept up to date with advances in technology. Printing facilities are available via

Highlife Highland Library Service. An increase in the usage of the service has been noted over the

past year. The NTC provided an invaluable service to local residents experiencing problems with

broadband provision and/or personal technology devices.

3. Accommodation has been provided to local community groups to provide free training

opportunities for local residents. One room on the ground floor continues to be used for storage, by

two local voluntary groups, for a minimal annual fee. This facilitates a valuable contribution to the

local community and provides a small income to contribute to the ongoing facilities provided by the

NTC.

4. Accommodation for training/meetings has continued to be provided to interested parties by

arrangement. An annual fee has been arranged for one regular user (Strathnaver Museum).

5. Fire Risk and Health & Safety Regulations continue to be monitored to ensure that the building

meets required standards. A layout of the building has been drafted and positioned next to fire

alarm system in main room (as per recommendation by Chubb at last service). Annual alarm

servicing has been merged with that of another local voluntary group to make more efficient use of

engineer time. Fire extinguishers are checked annually by Highland Council/Highlife Highland.

6. Offices have been re-let when vacated, with minimal time delay. There was excess demand for

office space last year and negotiations were made between lessees to accommodate this. Offices

were let to full capacity up until February 2018 when one room became available (the proposed

tenant decided not to take up the lease as agreed). Despite advertising and using all local

connections, the office remains vacant at 31 March 2018.

7. Discussions continue with office users to ensure energy efficiency is maximised and heating

costs are kept to an acceptable level.

8. Prompt action has been taken in response to emergency work required as it has arisen, in

particular, drainage issues. Both toilets regularly block and to date these have been dealt with

temporarily by a local tradesman. Scottish Water were contacted to complete an assessment of

external pipework/drainage but no issues were identified. A plumber has now completed an

assessment of internal pipework and proposed a plan of work aimed to resolve the issue

long-term. This work will need to be completed outside opening hours - a date is yet to be

confirmed but it has been noted as high priority.

9. The Reception area has been reorganised and tidied to enhance appearance and space. A third

computer terminal has been installed for public use. This computer was originally to be dedicated

to proposed Satellite Tracking project but to date this project has not gone ahead (issues with

provider).

10. Relevant evaluation forms have been completed in relation to grant monies received for

computer upgrade/refurbishment (SSE/HC).

11. The building has been maintained to an acceptable standard. Internal painting has been

arranged as required and external painting has been carried out by Highland Council. All window

ledges and main door have been refurbished and cleaning of downstairs windows arranged to

enhance the external appearance.

FINANCIAL REVIEW

Principal funding sources

Principal funding sources continue to be the receipt of room hire rentals and contributions to the

use of related electricity usage.

Reserves policy

The Directors have established a policy whereby the unrestricted funds not committed or invested

in tangible fixed assets held by the charity should be at least three months of general expenditure.

It is the view of the Directors that these reserves are adequate for the company to continue the

current activities in the event of a significant decrease in income.

FUTURE PLANS

1. To continue to provide the facilities, equipment and training that are well used and have become

a vital part of the Bettyhill, Altnaharra and Strathnaver community.

2. To maintain the income that finances these activities and where necessary explore additional

funding resources as required.

3. To continue to advertise office vacancies and aim to attract new tenants to generate sufficient

income to operate.

4. To explore opportunities for the future of the service in lieu of reduced demand for office space

and/or future relocation of public services.

5. To maintain the building and continue to monitor energy efficiency.

6. To maintain technology to ensure that an accessible service continues to be provided.

7. To ensure that office space continues to be fully occupied and explore opportunities for

additional income by promoting NTC facilities and offering training space on request.

8. To continue to work alongside Highlife Highland to provide the community with the most

accessible and effective service possible.

9. To ensure that the building continues to meet required fire safety standards.

10. To continue to liaise with Parallel 58 (technology provider) re any developments on potential

Satellite Tracking project.

11. To develop closer links with other community voluntary groups to discuss options for

partnership working to maintain future sustainability of the Telecentre service.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The governing documents of the Naver Teleservice Centre are the Memorandum and Articles of

Association of the company incorporated on 14 October 1992.

The Naver Teleservice Centre (NTC) is a charitable company limited by guarantee of £1 per

member and has no share capital. Permission has been obtained from the Registrar of Companies

to omit the word 'Limited' from the company's name.

Directors

The directors who served during the year are listed in full below, together with details of in-year

changes.

The company is limited by guarantee and therefore no director has any interest in the company.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

SC140712 (Scotland)

Registered Charity number

SC020662

Registered office

Bettyhill

Thurso

Caithness

KW14 7SS

Trustees

Mrs E Mackay

Miss A E Mackay

Mrs A M Mackay

Mrs H J Ross

Mrs M C M Telfer

Mrs P D Munro

Company Secretary

Mrs E Mackay

Independent examiner

Marcus D. MacIver

CA (ICAS)

Mackay & Co

Chartered Accountants

Main Street

Golspie

Sutherland

KW10 6RH

Approved by order of the board of trustees on 9 July 2018 and signed on its behalf by:

Miss A E Mackay - Trustee

Independent Examiner's Report to the Trustees of

Naver Teleservice Centre

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

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.

Marcus D. MacIver

CA (ICAS)

Mackay & Co

Chartered Accountants

Main Street

Golspie

Sutherland

KW10 6RH

9 July 2018

Naver Teleservice Centre

Statement of Financial Activities

for the Year Ended 31 March 2018

31.3.18

31.3.17

Unrestricted fund

Restricted fund

Total funds

Total funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

22

-

22

112

Charitable activities

3

General

-

-

-

2,000

Other trading activities

2

9,968

-

9,968

16,149

Total

9,990

-

9,990

18,261

EXPENDITURE ON

Charitable activities

4

General

12,099

-

12,099

13,146

NET INCOME/(EXPENDITURE)

(2,109

)

-

(2,109

)

5,115

RECONCILIATION OF FUNDS

Total funds brought forward

10,350

-

10,350

5,235

TOTAL FUNDS CARRIED FORWARD

8,241

-

8,241

10,350

Naver Teleservice Centre

Balance Sheet

At 31 March 2018

31.3.18

31.3.17

Unrestricted fund

Restricted fund

Total funds

Total funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

9

1,918

1,843

3,761

4,747

CURRENT ASSETS

Stocks

10

200

-

200

200

Debtors

11

996

-

996

2,485

Cash at bank and in hand

5,427

-

5,427

6,481

6,623

-

6,623

9,166

CREDITORS

Amounts falling due within one year

12

(300

)

-

(300

)

(800

)

NET CURRENT ASSETS

6,323

-

6,323

8,366

TOTAL ASSETS LESS CURRENT LIABILITIES

8,241

1,843

10,084

13,113

ACCRUALS AND DEFERRED INCOME

13

-

(1,843

)

(1,843

)

(2,763

)

NET ASSETS

8,241

-

8,241

10,350

FUNDS

14

Unrestricted funds

8,241

10,350

Restricted funds

-

-

TOTAL FUNDS

8,241

10,350

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 9 July 2018 and were signed on its behalf by:

Miss A E Mackay -Trustee

Naver Teleservice Centre

Notes to the Financial Statements

for the Year Ended 31 March 2018

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.

Tangible fixed assets

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

estimated useful life.

Freehold property

- Straight line over 50 years

Computer equipment

- 25% on cost

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 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.

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.

2.	OTHER TRADING ACTIVITIES

31.3.18

31.3.17

£

£

Services provided

-

373

Teleservice centre rents

7,165

12,315

Electricity contributions

2,803

3,461

9,968

16,149

3.	INCOME FROM CHARITABLE ACTIVITIES

31.3.18

31.3.17

Activity

£

£

Grants

General

-

2,000

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

31.3.18

31.3.17

£

£

Highland Council

-

2,000

4.	CHARITABLE ACTIVITIES COSTS

Direct costs

Support costs

Totals

(See note 5)

£

£

£

General

11,079

1,020

12,099

5.	SUPPORT COSTS

Governance costs

£

General

1,020

6.	NET INCOME/(EXPENDITURE)

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

31.3.18

31.3.17

£

£

Depreciation - owned assets

986

986

7.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2018

nor for the year ended 31 March 2017.

Trustees' expenses

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

ended 31 March 2017.

8.	STAFF COSTS

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

31.3.18

31.3.17

Staff

2

2

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

9.	TANGIBLE FIXED ASSETS

Freehold property

Fixtures and fittings

Computer equipment

Totals

£

£

£

£

COST

At 1 April 2017 and 31 March 2018

3,279

22,561

3,683

29,523

DEPRECIATION

At 1 April 2017

1,295

22,561

920

24,776

Charge for year

66

-

920

986

At 31 March 2018

1,361

22,561

1,840

25,762

NET BOOK VALUE

At 31 March 2018

1,918

-

1,843

3,761

At 31 March 2017

1,984

-

2,763

4,747

10.

STOCKS

31.3.18

31.3.17

£

£

Stocks

200

200

11.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.18

31.3.17

£

£

Trade debtors

996

-

Prepayments

-

2,485

996

2,485

12.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.18

31.3.17

£

£

Accruals and deferred income

-

500

Accrued expenses

300

300

300

800

13.	ACCRUALS AND DEFERRED INCOME

31.3.18

31.3.17

£

£

Deferred capital grants

1,843

2,763

14.	MOVEMENT IN FUNDS

At 1.4.17

Net movement in funds

At 31.3.18

£

£

£

Unrestricted funds

General fund

10,350

(2,109

)

8,241

TOTAL FUNDS

10,350

(2,109

)

8,241

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

Incoming resources

Resources expended

Movement in funds

£

£

£

Unrestricted funds

General fund

9,990

(12,099

)

(2,109

)

TOTAL FUNDS

9,990

(12,099

)

(2,109

)

Comparatives for movement in funds

At 1.4.16

Net movement in funds

Transfers between funds

At 31.3.17

£

£

£

£

Unrestricted Funds

General fund

4,663

5,115

572

10,350

Restricted Funds

Restricted fund

572

-

(572

)

-

TOTAL FUNDS

5,235

5,115

-

10,350

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

Incoming resources

Resources expended

Movement in funds

£

£

£

Unrestricted funds

General fund

18,261

(13,146

)

5,115

TOTAL FUNDS

18,261

(13,146

)

5,115

15.	RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2018.