Orkney Homes Trust Limited - Charities report - 22.2

REGISTERED COMPANY NUMBER: SC132048 (Scotland)

REGISTERED CHARITY NUMBER: SC030297

Report of the Trustees and

Unaudited Financial Statements

for the Year Ended 31 March 2023

for

Orkney Homes Trust Limited

(A Company Limited by Guarantee)

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 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 2023. 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 2019).

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 2023 was £43,503.26 (2022: £41,962.59).

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.

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

SC132048 (Scotland)

Registered Charity number

SC030297

Registered office

4 Gunn's Close

Kirkwall

Orkney

KW15 1DU

Trustees

Mrs K A Sutherland (resigned 26.8.22)

J T Richards (resigned 26.8.22)

W H Barbour

A R McGinn

J F Murray

R Kemp (appointed 7.4.22)

R Horrobin (appointed 30.6.22)

Mrs M J M Campbell (appointed 28.2.23)

Company Secretary

Mrs A E Whitton

Independent Examiner

Orcadia

Chartered Accountants

1 - 3 East Road

Kirkwall

Orkney

KW15 1HZ

Solicitors

The McKinstry Company

Queens Court House

39 Sandgate

Ayr

KA7 1BE

Approved by order of the board of trustees on 25 August 2023 and signed on its behalf by:

W H Barbour - Trustee

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 2023.

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

Orcadia

Chartered Accountants

Date: .............................................

2023

2022

Unrestricted

Total

funds

funds

Notes

£

£

INCOME AND ENDOWMENTS FROM

Investment income

2

4,012

4,013

EXPENDITURE ON

Raising funds

3

732

880

NET INCOME

3,280

3,133

RECONCILIATION OF FUNDS

Total funds brought forward

160,505

157,372

TOTAL FUNDS CARRIED FORWARD

163,785

160,505

2023

2022

Unrestricted

Total

funds

funds

Notes

£

£

FIXED ASSETS

Investment property

8

120,000

120,000

CURRENT ASSETS

Debtors

9

795

1,302

Cash at bank

43,503

41,963

44,298

43,265

CREDITORS

Amounts falling due within one year

10

(513

)

(2,760

)

NET CURRENT ASSETS

43,785

40,505

TOTAL ASSETS LESS CURRENT LIABILITIES

163,785

160,505

NET ASSETS

163,785

160,505

FUNDS

11

Unrestricted funds

163,785

160,505

TOTAL FUNDS

163,785

160,505

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2023 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 provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 25 August 2023 and were signed on its behalf by:

W H Barbour - Trustee

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 2019)', 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.

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

-

25% on cost

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.

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

2023

2022

£

£

Rents received

4,012

4,013

3.	RAISING FUNDS

Investment management costs

2023

2022

£

£

Sundry expenses

88

142

Property repairs

120

271

Property insurance

230

198

Support costs

294

269

732

880

4.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2023 nor for the year ended 31 March 2022.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2023 nor for the year ended 31 March 2022.

5.	STAFF COSTS

There were no staff costs in 2023 or 2022.

6.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

funds

£

INCOME AND ENDOWMENTS FROM

Investment income

4,013

EXPENDITURE ON

Raising funds

880

NET INCOME

3,133

RECONCILIATION OF FUNDS

Total funds brought forward

157,372

TOTAL FUNDS CARRIED FORWARD

160,505

7.	TANGIBLE FIXED ASSETS

Fixtures

and

fittings

£

COST

At 1 April 2022 and 31 March 2023

8,303

DEPRECIATION

At 1 April 2022 and 31 March 2023

8,303

NET BOOK VALUE

At 31 March 2023

-

At 31 March 2022

-

8.	INVESTMENT PROPERTY

£

FAIR VALUE

At 1 April 2022

and 31 March 2023

120,000

NET BOOK VALUE

At 31 March 2023

120,000

At 31 March 2022

120,000

The investment property was valued on a fair value basis by Billy Groundwater AssocRICS of Orkney Surveying Services.

9.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Other debtors

795

1,302

10.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Other creditors

513

2,760

11.	MOVEMENT IN FUNDS

Net

movement

At

At 1.4.22

in funds

31.3.23

£

£

£

Unrestricted funds

Hardship Fund

93,038

3,280

96,318

Revaluation Reserve

67,467

-

67,467

160,505

3,280

163,785

TOTAL FUNDS

160,505

3,280

163,785

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

Hardship Fund

4,012

(732

)

3,280

TOTAL FUNDS

4,012

(732

)

3,280

Comparatives for movement in funds

Net

movement

At

At 1.4.21

in funds

31.3.22

£

£

£

Unrestricted funds

Hardship Fund

89,905

3,133

93,038

Revaluation Reserve

67,467

-

67,467

157,372

3,133

160,505

TOTAL FUNDS

157,372

3,133

160,505

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

Hardship Fund

4,013

(880

)

3,133

TOTAL FUNDS

4,013

(880

)

3,133

A current year 12 months and prior year 12 months combined position is as follows:

Net

movement

At

At 1.4.21

in funds

31.3.23

£

£

£

Unrestricted funds

Hardship Fund

89,905

6,413

96,318

Revaluation Reserve

67,467

-

67,467

157,372

6,413

163,785

TOTAL FUNDS

157,372

6,413

163,785

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

Hardship Fund

8,025

(1,612

)

6,413

TOTAL FUNDS

8,025

(1,612

)

6,413

12.	RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2023.