Hebrides Alpha Project - Charities report - 18.1

REGISTERED COMPANY NUMBER: SC294898 (Scotland)

REGISTERED CHARITY NUMBER: SC037559

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED

31 MARCH 2018

FOR

HEBRIDES ALPHA PROJECT

HEBRIDES ALPHA PROJECT

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

Notes to the Financial Statements

7 to 11

HEBRIDES ALPHA PROJECT

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 objectives are to:

1 To provide within the supported accommodation unit a secure and safe 'alcohol and drug' free environment for

persons with personal and social difficulties in keeping with care standards as outlined by the Care Inspectorate for

Scotland (SCSWIS)

2 To provide an 'on site' (see above) support service through trained and caring support staff and through

co-operation with the local Health Board, the local authority or the Hebridean Housing Partnership.

3 To provide a person-centred therapeutic and life-skills programme, on a one-to-one and if relevant, a group basis,

meeting the assessed needs of the individuals within the project. This includes a positive use of time and preparation for

work through the therapeutic employment initiative.

4 To ensure through an appropriately structured tenancy agreement that the boundaries set out within the project are

made clear and maintained and that each resident using the housing facility is protected from influences within the

house which may be detrimental to their progress and recovery. The tenancy agreement includes guidelines in relation to

discharge and termination of tenancy.

5 To liaise as appropriate with the local authority, Hebridean Housing Partnership and other agencies for the benefit of

residents within the project.

6 To ensure that staff training and support are a regular feature of the project's life.

7 To maintain accountability and to meet all the requirements set out by law as are relevant to a charitable company

limited by guarantee.

8 To ensure as part of a general commitment to anti-discriminatory practice that the project is open to any person who

meets the entrance criteria regardless of their personal faith or non-faith position.

Significant activities

Objectives for the year are as above and to seek also to achieve a regular income stream to ensure that the project is

able to be sustainable in the longer term should the demand for the service continue.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

Principal activity

The principal activity of the company in the year under review was that of providing the therapeutic service described

above to all residents who entered the accommodation.

Fundraising activities

The project has continued to receive funding through the local Alcohol and Drug Partnership plus a grant aid contribution

from Point and Sandwick Develoipment Trust, Horshader Community Development and Tolsta Community Development..

Private Donations also comprise a small part of the project's income as does revenue through Housing Benefit paid for

each resident's accommodation.

FINANCIAL REVIEW

Reserves policy

The trustees have examined the company's requirements for reserves in light of the main risks to the organisation. It has

established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets held by the charity

should be between 3 and 6 months of operating costs, calculated and reviewed annually. The trustees aim to meet this

requirement over the next 3 years. The trustees deem that these reserves are necessary to enable them to have the

confidence to manage the resources of the company without limiting its main objective of providing a residential

programme for recovery from alcohol or drug misuse.

There was an excess of expenditure over income for the period resulting in a deficit of £4,835 (2017 - surplus £1,859) in

funds during the period. The reserves balance of £114,227 (2017- £119,062) is considered by the trustees to be

sufficient to meet the funding requirements of ongoing projects at the year end.

FUTURE PLANS

Hebrides Alpha Project's objectives for the next period are as follows:

Continue to focus on the core Aims and Objectives as described in a previous section;

Seek to achieve sustainable income streams;

The Board of Directors along with the staff will work together seeking financial aid to assist the unit to gain funding for

subsequent years;

Continue to gain accreditation for all staff through the SVQ system. This applies to managers and care staff.

WE ARE GRATEFUL AND APPRECIATE VERY MUCH ALL WHO HAVE SUPPORTED US IN 2017-18 AND HOPE THAT IN

THE NEXT YEAR WE WILL BE ABLE TO PROVIDE INCREASED AND RELEVANT SERVICE TO MANY PERSONS IN OUR

COMMUNITY.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The organisation is a company limited by guarantee and is registered as a Scottish charity. 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 winding-up of the company any property remaining after satisfaction of all the company's debts and

liabilities will be transferred to some other charitable body or bodies whose objects are altogether or in part similar to

those of the company.

Recruitment and appointment of new trustees

The directors of the company are also charity trustees for the purposes of charity law. All members are eligible to vote in

elections. The Board of Directors at any given time is made up of a minimum of three directors.

The Board make-up ensures even representation across the sector served by the company's objects, including persons

who have had experience in recovery from substance misuse, who have experience operationally in delivery of alcohol

and drug services and who have experience of governance within the statutory sector.

Organisational structure

Hebrides Alpha Project has a Board of Directors which meets quarterly and is responsible for the strategic direction and

policy of the charity.

A system of delegation is in place under which the translation of policy into strategy is undertaken by the Project

Manager in consultation with the Board of Directors and the day-to-day implementation of strategy and direction of

operational policy is undertaken by the Project Manager.

The Project Manager is responsible for ensuring that the charity delivers the core service as described in its Aims and

Objectives. The Project Manager is responsible for the day-to-day management of accounting and information systems.

Induction and training of new trustees

Trustees are already familiar with the practical work of the charity as representatives either of local churches, local

self-help groups, the business sector and other relevant disciplines.

New trustees are invited to undertake a short tour of the company's premises in order to familiarise themselves with the

practical work of the charity. New trustees are also provided with copies of the main documents which set out the

operational framework for the charity, including the Memorandum and Articles of Association, latest published accounts

and Annual Reports.

The directors during the period under review are listed above.

Related parties

Hebrides Alpha Project has a wholly owned subsidiary company, Hebrides Alpha Trading CIC.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

SC294898 (Scotland)

Registered Charity number

SC037559

Registered office

48b Upper Coll

Back

isle of Lewis

HS2 0LT

Trustees

Reverend T Macneil

D Macdonald

- resigned 13.9.17

Mrs F Morrison

A J Macdonald

Independent examiner

CIB Services

Chartered Accountants

63 Kenneth Street

Stornoway

Isle of Lewis

Western Isles

HS1 2DS

Senior Management Team

Shona Macleod

Bankers

Bank of Scotland

St Andrews Square

Edinburgh

EH2 2YR

Approved by order of the board of trustees on 12 December 2018 and signed on its behalf by:

Reverend T Macneil - Trustee

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF

HEBRIDES ALPHA PROJECT

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

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

(as amended). 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 the course of 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

13 December 2018

HEBRIDES ALPHA PROJECT

STATEMENT OF FINANCIAL ACTIVITIES

(INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 MARCH 2018

31.3.18

31.3.17

Unrestricted fund

Restricted funds

Total funds

Total funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

23,663

-

23,663

24,666

Charitable activities

3

Supported Living

40,238

105,000

145,238

143,209

Other income

3,000

-

3,000

3,000

Total

66,901

105,000

171,901

170,875

EXPENDITURE ON

Charitable activities

Supported Living

68,736

108,000

176,736

169,016

NET INCOME/(EXPENDITURE)

(1,835

)

(3,000

)

(4,835

)

1,859

RECONCILIATION OF FUNDS

Total funds brought forward

110,062

9,000

119,062

117,203

TOTAL FUNDS CARRIED FORWARD

108,227

6,000

114,227

119,062

HEBRIDES ALPHA PROJECT

BALANCE SHEET

AT 31 MARCH 2018

31.3.18

31.3.17

Unrestricted fund

Restricted funds

Total funds

Total funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

8

4,304

6,000

10,304

14,705

Investments

9

2

-

2

2

4,306

6,000

10,306

14,707

CURRENT ASSETS

Cash at bank

105,224

-

105,224

127,433

CREDITORS

Amounts falling due within one year

10

(1,303

)

-

(1,303

)

(23,078

)

NET CURRENT ASSETS

103,921

-

103,921

104,355

TOTAL ASSETS LESS CURRENT LIABILITIES

108,227

6,000

114,227

119,062

NET ASSETS

108,227

6,000

114,227

119,062

FUNDS

11

Unrestricted funds

108,227

110,062

Restricted funds

6,000

9,000

TOTAL FUNDS

114,227

119,062

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 12 December 2018 and were signed on its behalf by:

Reverend T Macneil -Trustee

HEBRIDES ALPHA PROJECT

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 with the exception of

investments which are included at market value.

The financial statements are prepared in sterling which is the functional currency of the charity and are rounded

to the nearest £.

Reconciliation with previous Generally Accepted Accounting Practice

In preparing the accounts, the directors have considered whether in applying the accounting policies required by

FRS 102 a restatement of comparative items was needed. The policies applied under the company's previous

accounting framework are not materially different to FRS 102 and have not impacted on the balance sheet or net

profit/(loss). Accordingly no restatements were required.

Financial reporting standard 102 - reduced disclosure exemptions

The charity has taken advantage of the following disclosure exemption 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.

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.

Fixtures and fittings

- 10% on cost

Office equipment

- 33% on reducing balance

Related party exemption

The charitable company has taken advantage of exemption, under the terms of Financial Reporting Standard 102

'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party

transactions with wholly owned subsidiaries within the group.

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.	DONATIONS AND LEGACIES

31.3.18

31.3.17

£

£

Donations

23,663

24,666

3.	INCOME FROM CHARITABLE ACTIVITIES

31.3.18

31.3.17

Activity

£

£

Rental income

Supported Living

37,462

31,727

Service User Payments

Supported Living

2,776

6,482

Grants

Supported Living

105,000

105,000

145,238

143,209

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

31.3.18

31.3.17

£

£

Alcohol and Drug Programme

80,000

80,000

Horshader Community Development

10,000

8,000

Tolsta Community Development Limited

-

2,000

Point and Sandwick Development Trust

15,000

15,000

105,000

105,000

4.	NET INCOME/(EXPENDITURE)

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

31.3.18

31.3.17

£

£

Depreciation - owned assets

4,401

4,401

5.	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.

6.	STAFF COSTS

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

31.3.18

31.3.17

Charitable activities

5

5

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

7.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted fund

Restricted funds

Total funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

24,666

-

24,666

Charitable activities

Supported Living

38,209

105,000

143,209

Other income

3,000

-

3,000

Total

65,875

105,000

170,875

EXPENDITURE ON

Charitable activities

Supported Living

61,016

108,000

169,016

Total

61,016

108,000

169,016

NET INCOME/(EXPENDITURE)

4,859

(3,000

)

1,859

RECONCILIATION OF FUNDS

Total funds brought forward

105,203

12,000

117,203

TOTAL FUNDS CARRIED FORWARD

110,062

9,000

119,062

8.	TANGIBLE FIXED ASSETS

Fixtures and fittings

Motor vehicles

Office equipment

Totals

£

£

£

£

COST

At 1 April 2017 and 31 March 2018

14,011

12,000

1,730

27,741

DEPRECIATION

At 1 April 2017

8,306

3,000

1,730

13,036

Charge for year

1,401

3,000

-

4,401

At 31 March 2018

9,707

6,000

1,730

17,437

NET BOOK VALUE

At 31 March 2018

4,304

6,000

-

10,304

At 31 March 2017

5,705

9,000

-

14,705

9.	FIXED ASSET INVESTMENTS

Shares in group undertakings

£

MARKET VALUE

At 1 April 2017 and 31 March 2018

2

NET BOOK VALUE

At 31 March 2018

2

At 31 March 2017

2

There were no investment assets outside the UK.

The company's investments at the balance sheet date in the share capital of companies include the following:

Hebrides Alpha Trading CIC

Nature of business: Window cleaning and recycling collections.

%

Class of share:

holding

Ordinary

100

31.3.18

31.3.17

£

£

Aggregate capital and reserves

77,287

79,462

(Loss)/profit for the year

(2,175

)

2,044

10.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.18

31.3.17

£

£

Trade creditors

-

1

Amounts owed to group undertakings

2

3

Social security and other taxes

-

2,163

Accrued expenses

1,301

20,911

1,303

23,078

11.	MOVEMENT IN FUNDS

At 1.4.17

Net movement in funds

At 31.3.18

£

£

£

Unrestricted funds

General fund

110,062

(1,835

)

108,227

Restricted funds

Capital Fund

9,000

(3,000

)

6,000

TOTAL FUNDS

119,062

(4,835

)

114,227

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

Incoming resources

Resources expended

Movement in funds

£

£

£

Unrestricted funds

General fund

66,901

(68,736

)

(1,835

)

Restricted funds

Restricted General Fund

85,000

(85,000

)

-

Western Isles Alcohol and Drug Partnership

20,000

(20,000

)

-

Capital Fund

-

(3,000

)

(3,000

)

105,000

(108,000

)

(3,000

)

TOTAL FUNDS

171,901

(176,736

)

(4,835

)

Comparatives for movement in funds

At 1.4.16

Net movement in funds

At 31.3.17

£

£

£

Unrestricted Funds

General fund

105,203

4,859

110,062

Restricted Funds

Capital Fund

12,000

(3,000

)

9,000

TOTAL FUNDS

117,203

1,859

119,062

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

Incoming resources

Resources expended

Movement in funds

£

£

£

Unrestricted funds

General fund

65,875

(61,016

)

4,859

Restricted funds

Restricted General Fund

105,000

(105,000

)

-

Capital Fund

-

(3,000

)

(3,000

)

105,000

(108,000

)

(3,000

)

TOTAL FUNDS

170,875

(169,016

)

1,859

12.	RELATED PARTY DISCLOSURES

The charitable company has taken advantage of exemption, under the terms of Financial Reporting Standard 102

'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party

transactions with wholly owned subsidiaries within the group.