Orkney Homes Trust Limited - Charities report - 19.1
Orkney Homes Trust Limited - Charities report - 19.1
REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
Report of the Trustees and |
Unaudited Financial Statements for the Year Ended |
31 March 2019 |
for |
Orkney Homes Trust Limited |
(A Company Limited by Guarantee) |
Orkney Homes Trust Limited |
Contents of the Financial Statements |
for the Year Ended 31 March 2019 |
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 |
Orkney Homes Trust Limited |
Report of the Trustees |
for the Year Ended 31 March 2019 |
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 2019. 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 purpose and objects of the Trust are: |
To relieve poverty principally among the poor residents of the Orkney Islands through: |
(i) The provision of good quality housing for rent at affordable rents under secure conditions of tenancy; |
(ii) The promotion of companies whose activities are directed towards the provision of paid employment to poor |
residents of the Orkney Islands or towards the provision of rented housing for the poor residents of the Orkney Islands |
or towards relief from need among the poor residents of the Orkney Islands, the acquisition and holding of shares, |
stocks, debentures and other interest in companies activities are also directed; |
(iii) The provision of advice and assistance with regard to the establishment and operation or enterprises whose |
activities are directed towards the aims referred to in sub-paragraphs (i) and (ii); |
(iv) The promotion and implementation of schemes of community benefit of a charitable nature within the Orkney |
Islands; |
(v) The provision of training opportunities and |
(vi) The operation of workspace projects. |
ACHIEVEMENT AND PERFORMANCE |
Investment performance |
During the year, the Trust continued renting out the property at 75 Quoybanks Crescent. |
FINANCIAL REVIEW |
Financial position |
The balance in the Royal Bank of Scotland accounts at 31 March 2019 was £32,295.25 (2018: £30,143.83). |
FUTURE PLANS |
The Trust intends to raise funds and seek donations to enable it to carry out the Trust objectives described above. |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Governing document |
Orkney Homes Trust Limited is a company limited by guarantee governed by its Memorandum and Articles of |
Association dated 29 May 1991. As of 25 May 2000, it is registered as a charity with The Office of the Scottish |
Charity Register. |
Recruitment and appointment of new trustees |
Any new appointments are at the recommendation of the board. |
Orkney Homes Trust Limited |
Report of the Trustees |
for the Year Ended 31 March 2019 |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Organisational structure |
The board of trustees administers the charity. The board meets regularly. The day to day administration of the charity |
is carried out by Anne Whitton. |
Induction and training of new trustees |
New trustees are advised of their legal obligations under charity and company law, the content of the Memorandum |
and Articles of Association, the committee and decision making processes and recent financial performance of the |
charity. |
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 |
Registered Charity number |
Registered office |
Trustees |
- resigned 12.6.18 |
- appointed 3.9.18 |
Company Secretary |
Independent examiner |
Orcadia |
Chartered Accountants |
Kirkwall |
Orkney |
KW15 1HZ |
Orkney Homes Trust Limited |
Report of the Trustees |
for the Year Ended 31 March 2019 |
REFERENCE AND ADMINISTRATIVE DETAILS |
Solicitors |
The McKinstry Company |
Queens Court House |
39 Sandgate |
Ayr |
KA7 1BE |
Approved by order of the board of trustees on |
Independent Examiner's Report to the Trustees of |
Orkney Homes Trust Limited |
Independent examiner's report to the trustees of Orkney Homes Trust Limited ('the Company') |
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2019. |
Responsibilities and basis of report |
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act'). |
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act. |
Independent examiner's statement |
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe: |
1. | accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or |
2. | the accounts do not accord with those records; or |
3. | the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or |
4. | the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)]. |
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached |
Doris Hutchison |
CA, ATT |
Orcadia |
Chartered Accountants |
Date: ............................................. |
Orkney Homes Trust Limited |
Statement of Financial Activities |
for the Year Ended 31 March 2019 |
2019 | 2018 |
Unrestricted funds |
Total funds |
Notes | £ | £ |
INCOME AND ENDOWMENTS FROM |
Investment income | 2 |
Total |
EXPENDITURE ON |
Raising funds | 3 |
Charitable activities |
Total |
NET INCOME |
RECONCILIATION OF FUNDS |
Total funds brought forward |
TOTAL FUNDS CARRIED FORWARD | 143,526 |
Orkney Homes Trust Limited |
Balance Sheet |
At 31 March 2019 |
2019 | 2018 |
Unrestricted funds |
Total funds |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 7 |
Investment property | 8 | 112,000 |
CURRENT ASSETS |
Debtors | 9 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 10 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
NET ASSETS |
FUNDS | 11 |
Unrestricted funds | 145,260 | 143,526 |
TOTAL FUNDS | 143,526 |
Orkney Homes Trust Limited |
Balance Sheet - continued |
At 31 March 2019 |
The charitable company is entitled to exemption from audit under |
Section 477 of the Companies Act 2006 for the year ended 31 March 2019. |
The members have not required the company to obtain an audit of its financial statements for the year ended |
31 March 2019 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 |
Orkney Homes Trust Limited |
Notes to the Financial Statements |
for the Year Ended 31 March 2019 |
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, as modified by the revaluation of certain assets. |
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. |
Fixtures and fittings |
Investment property |
Investment properties are included in the balance sheet at their open market value. |
Full valuations are made by independent professional qualified valuers every five years and in the intervening |
years, these valuations are updated by directors with the assistance of independent professional advice as |
required. |
Taxation |
The Trust is exempt from corporation tax on its charitable activities. Donations and legacies to the Trust may |
attract taxation relief for the donor. The Trust is not registered for Value Added Tax and accordingly any such |
irrecoverable tax is included in the expenditure concerned. |
Orkney Homes Trust Limited |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2019 |
1. | ACCOUNTING POLICIES - continued |
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. |
2. | INVESTMENT INCOME |
2019 | 2018 |
£ | £ |
Rents received |
Deposit account interest |
3. | RAISING FUNDS |
Investment management costs |
2019 | 2018 |
£ | £ |
Sundry expenses | 157 | 512 |
Property repairs |
Property insurance |
Depreciation | 88 | 88 |
Support costs | 306 | 264 |
1,780 | 3,326 |
4. | NET INCOME/(EXPENDITURE) |
Net income/(expenditure) is stated after charging/(crediting): |
2019 | 2018 |
£ | £ |
Depreciation - owned assets |
Orkney Homes Trust Limited |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2019 |
5. | TRUSTEES' REMUNERATION AND BENEFITS |
There were no trustees' remuneration or other benefits for the year ended 31 March 2019 nor for the year ended |
31 March 2018. |
Trustees' expenses |
There were no trustees' expenses paid for the year ended 31 March 2019 nor for the year ended 31 March 2018. |
6. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES |
Unrestricted funds |
£ |
INCOME AND ENDOWMENTS FROM |
Investment income |
Total |
EXPENDITURE ON |
Raising funds |
Total |
NET INCOME |
RECONCILIATION OF FUNDS |
Total funds brought forward | 142,838 |
TOTAL FUNDS CARRIED FORWARD | 143,526 |
Orkney Homes Trust Limited |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2019 |
7. | TANGIBLE FIXED ASSETS |
Fixtures and fittings |
£ |
COST |
At 1 April 2018 and 31 March 2019 |
DEPRECIATION |
At 1 April 2018 |
Charge for year |
At 31 March 2019 |
NET BOOK VALUE |
At 31 March 2019 |
At 31 March 2018 |
8. | INVESTMENT PROPERTY |
£ |
MARKET VALUE |
At 1 April 2018 and 31 March 2019 |
NET BOOK VALUE |
At 31 March 2019 |
At 31 March 2018 |
The investment property was valued on an fair value basis by John S Stockan, BSc FRICS, Chartered Surveyor. |
9. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Other debtors |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Other creditors |
Orkney Homes Trust Limited |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2019 |
11. | MOVEMENT IN FUNDS |
At 1.4.18 |
Net movement in funds |
At 31.3.19 |
£ | £ | £ |
Unrestricted funds |
Hardship Fund | 84,059 | 1,734 | 85,793 |
Revaluation Reserve | 59,467 | - | 59,467 |
1,734 |
TOTAL FUNDS | 1,734 | 145,260 |
Net movement in funds, included in the above are as follows: |
Incoming resources |
Resources expended |
Movement in funds |
£ | £ | £ |
Unrestricted funds |
Hardship Fund | 4,014 | (2,280 | ) | 1,734 |
TOTAL FUNDS | ( |
) | 1,734 |
Comparatives for movement in funds |
At 1.4.17 |
Net movement in funds |
At 31.3.18 |
£ | £ | £ |
Unrestricted Funds |
Hardship Fund | 83,371 | 688 | 84,059 |
Revaluation Reserve | 59,467 | - | 59,467 |
142,838 | 688 | 143,526 |
TOTAL FUNDS | 142,838 | 688 | 143,526 |
Orkney Homes Trust Limited |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2019 |
11. | MOVEMENT IN FUNDS - continued |
Comparative net movement in funds, included in the above are as follows: |
Incoming resources |
Resources expended |
Movement in funds |
£ | £ | £ |
Unrestricted funds |
Hardship Fund | 4,014 | (3,326 | ) | 688 |
TOTAL FUNDS | 4,014 | (3,326 | ) | 688 |
A current year 12 months and prior year 12 months combined position is as follows: |
At 1.4.17 |
Net movement in funds |
At 31.3.19 |
£ | £ | £ |
Unrestricted funds |
Hardship Fund | 83,371 | 2,422 | 85,793 |
Revaluation Reserve | 59,467 | - | 59,467 |
TOTAL FUNDS | 142,838 | 2,422 | 145,260 |
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows: |
Incoming resources |
Resources expended |
Movement in funds |
£ | £ | £ |
Unrestricted funds |
Hardship Fund | 8,028 | (5,606 | ) | 2,422 |
TOTAL FUNDS | 8,028 | (5,606 | ) | 2,422 |
12. | RELATED PARTY DISCLOSURES |
There were no related party transactions for the year ended 31 March 2019. |