Orkney Homes Trust Limited - Charities report - 18.1

REGISTERED COMPANY NUMBER: SC132048 (Scotland)

REGISTERED CHARITY NUMBER: SC030297

Report of the Trustees and

Unaudited Financial Statements for the Year Ended

31 March 2018

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 2018

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 12

Orkney Homes Trust Limited

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 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 2018 was £30143.83 (2017: £4852.19).

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

15 Victoria Street

Kirkwall

Orkney

KW15 1DN

Trustees

Mrs K A Sutherland

A K Johnson

- resigned 12.6.18

J T Richards

D J Walls

- resigned 12.2.18

Miss A P Moore

W H Barbour

A R McGinn

J F Murray

- appointed 7.12.17

Company Secretary

Mrs A E Whitton

Independent examiner

Orcadia

Chartered Accountants

1 - 3 East Road

Kirkwall

Orkney

KW15 1HZ

Solicitors

Herd Law Practice

21-23 Bridge Street

Kirkwall

Orkney

KW15 1HR

Approved by order of the board of trustees on 31 July 2018 and signed on its behalf by:

W H Barbour - Trustee

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 2018.

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 2018

2018

2017

Unrestricted funds

Total funds

Notes

£

£

INCOME AND ENDOWMENTS FROM

Investment income

2

4,014

3,937

Total

4,014

3,937

EXPENDITURE ON

Raising funds

3

3,326

995

NET INCOME

688

2,942

RECONCILIATION OF FUNDS

Total funds brought forward

142,838

139,896

TOTAL FUNDS CARRIED FORWARD

143,526

142,838

Orkney Homes Trust Limited

Balance Sheet

At 31 March 2018

2018

2017

Unrestricted funds

Total funds

Notes

£

£

FIXED ASSETS

Tangible assets

7

2,138

2,226

Investment property

8

112,000

112,000

114,138

114,226

CURRENT ASSETS

Debtors

9

993

25,606

Cash at bank

30,144

4,852

31,137

30,458

CREDITORS

Amounts falling due within one year

10

(1,749

)

(1,846

)

NET CURRENT ASSETS

29,388

28,612

TOTAL ASSETS LESS CURRENT LIABILITIES

143,526

142,838

NET ASSETS

143,526

142,838

FUNDS

11

Unrestricted funds

143,526

142,838

TOTAL FUNDS

143,526

142,838

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 31 July 2018 and were signed on its behalf by:

W H Barbour -Trustee

Orkney Homes Trust Limited

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, 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

2018

2017

£

£

Rents received

4,014

3,936

Deposit account interest

-

1

4,014

3,937

3.	RAISING FUNDS

Investment management costs

2018

2017

£

£

Sundry expenses

512

151

Property repairs

2,296

244

Property insurance

166

169

Depreciation

88

88

Support costs

264

343

3,326

995

4.	NET INCOME/(EXPENDITURE)

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

2018

2017

£

£

Depreciation - owned assets

88

87

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.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted funds

£

INCOME AND ENDOWMENTS FROM

Investment income

3,937

Total

3,937

EXPENDITURE ON

Raising funds

995

Total

995

NET INCOME

2,942

RECONCILIATION OF FUNDS

Total funds brought forward

139,896

TOTAL FUNDS CARRIED FORWARD

142,838

7.	TANGIBLE FIXED ASSETS

Fixtures and fittings

£

COST

At 1 April 2017 and 31 March 2018

8,303

DEPRECIATION

At 1 April 2017

6,077

Charge for year

88

At 31 March 2018

6,165

NET BOOK VALUE

At 31 March 2018

2,138

At 31 March 2017

2,226

8.	INVESTMENT PROPERTY

£

MARKET VALUE

At 1 April 2017 and 31 March 2018

112,000

NET BOOK VALUE

At 31 March 2018

112,000

At 31 March 2017

112,000

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

2018

2017

£

£

Other debtors

993

25,606

10.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Other creditors

1,749

1,846

11.	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

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

Comparatives for movement in funds

At 1.4.16

Net movement in funds

At 31.3.17

£

£

£

Unrestricted Funds

Hardship Fund

80,429

2,942

83,371

Revaluation Reserve

59,467

-

59,467

139,896

2,942

142,838

TOTAL FUNDS

139,896

2,942

142,838

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

Incoming resources

Resources expended

Movement in funds

£

£

£

Unrestricted funds

Hardship Fund

3,937

(995

)

2,942

TOTAL FUNDS

3,937

(995

)

2,942

12.	RELATED PARTY DISCLOSURES

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