The trustees present their report and financial statements for the year ended 31 March 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association , the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "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)".
The charity's objects are to provide rehabilitation, skills learning, motivation, self-esteem improvement and outreach facilities throughout Lochaber and there has been no change in these during the year.
The main activities undertaken in relation to our purposes are the provision of support to all members of the community to help them overcome the barriers they face to enjoy a good quality of life. This includes providing Counselling and Mentoring as well as assistance in finding employment, training or further education.
The level of income from providing Employment Support services in the year was £64,017 compared to £27,582 for the previous year. The rules for the level of payments were changed due to Covid 19 and this resulted in an increase in the level of income received by Lochaber Hope.
The level of fundraising in the year was £12,819 and the trustees wish to express their gratitude to all the volunteers and supporters who provided financial support to Lochaber Hope during the year. The amount raised was excellent considering the negative effect Covid 19 had on general fundraising.
Grants were received during the year from a number of funders as detailed in note 4 to the accounts and the trustees would like to record their gratitude to all of the funders for the amounts received.
The financial performance of Lochaber Hope in the year to 31 March 2021 was extremely positive with a total surplus for the year of £137,607 as compared to £65,371 for the previous year.
The largest source of income was Performance related grant funding and further details of this income source are given on note 4 to the accounts. The Funding from The Big Lottery, Trusthouse Foundation, SSE and RBS Social Capital were provided to allow Lochaber Hope to continue the Workshop project that aims to reduce male suicide in Lochaber. The project is geared to work with those in the community whop suffer from Mental Health issues and engage them in woodworking projects that will serve to boost their sense of self -worth. The Workshop project has not been able to work with as many clients as was hoped due to Covid 19 social distancing regulations, but the hope is that as these restrictions are lifted the number of clients will increase significantly. This project is developing into a Social Enterprise and the level of income generated is expected to increase on a yearly basis.
The support from the Robertson Trust was used to support the day to day activities of Lochaber Hope with a particular emphasis on providing support to ladies in the community who suffer from low self esteem, lack of confidence and depression. The long term support received from the Robertson Trust has been of fundamental importance to Lochaber Hope over the past three years and we look forward to working with them in the future.
The income from providing support to those seeking employment or further education generated a significant increase in income in the year. The Covid 19 restrictions resulted on the rules relating to this activity being amended which produced a positive income change in the year. As Covid restrictions are eased the level of clients using this service is expected to increase in the next year.
The level of costs incurred during the year increased by less than £13,000 despite income increasing by over thirty percent. Some of the staff were furloughed for a short period but in general costs were in line with the previous year.
The unrestricted reserves at the end of the financial year were £184,195 which is equivalent to 14 months running costs. The reserves policy of Lochaber Hope is to maintain unrestricted reserves of at least 3 months running costs. The directors anticipate that the level of reserves may reduce in the next five years as some of the current funders are expected to reduce or withdraw from providing any further grant funding. However the level of reserves is expected to remain comfortably above the minimum reserves policy limit. The Trustees therefore do not have any uncertainties about the charity’s ability to continue as a going concern.
Covid 19 Effect on Lochaber Hope
Last years financial statements included an assessment of the effect of Covid 19 on Lochaber Hope. In those accounts it was noted that the overall effect was positive as the level of core funding remained and, in some cases, improved. That situation continued in the last financial year. As noted above the level of income from providing Employability services increased and the major funders continued to provide financial support plus Lochaber Hope qualified for government support and received an unexpected donation of £5,000 from the Lund Trust.
The core services of Counselling and Mentoring continued although they were often delivered over Zoom. The number of clients who were able to get involved with the workshop was limited, but the hope is that there will be many more clients involved with the workshop in the next financial year. We have sought to be involved in several community benefit projects in the past year and this will continue next year.
The trustees believe that Lochaber Hope is well placed to provide further support to members of the local community who have been adversely affected by Covid 19.
The charity is a company limited by guarantee and is governed by its Memorandum and Articles of Association .
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
The methods used to recruit and appoint new chair and trustees are identified in the Memorandum and Articles of Association .
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The charity is governed by the Board of Trustees who delegate the day to day running of the facility to the employed manager, who reports directly to them.
The trustees' r eport was approved by the Board of Trustees.
I report on the financial statements of the charity for the year ended 31 March 2021, which are set out on pages 5 to 19.
The charity’s trustees, who are also the directors of Lochaber Hope for the purposes of company law, are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investments (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the 2006 Accounts Regulations does not apply. It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Act and to state whether particular matters have come to my attention.
My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeks explanations from the 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 financial statements.
In connection with my examination, no matter has come to my attention:
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 financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;
to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Lochaber Hope is a private company limited by guarantee incorporated in Scotland. The registered office is Dalnahaine, Belford Road, Fort William, PH33 6ES.
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and “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)” (as issued in October 2019 for accounting periods commencing from 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
At the date on which the financial statements were approved, the financial implications arising from the Coronavirus (Covid-19) outbreak, which has affected the UK, remain uncertain. The trustees have reviewed forecasts for the next 12 months based on an anticipated change in the charity’s operational activities in the short term and have agreed funding and reserves are in place to cope with the changes.
Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Grants receivable are credited to the Statement of Financial Activities (SOFA) in the year which they are awarded, providing entitlement, certainty and measurement can be confirmed.
Counselling, Training and Earned income is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts.
Fundraising income is measured at the fair value of the consideration received or receivable and represents amounts receivable from fundraising events and programmes.
Expenditure other than that which has been capitalised is included on an accruals basis and is recognised when there is a legal or constructive obligation to pay the expenditure.
Expenditure on raising funds are expenditure for fundraising events.
Expenditure on charitable activities are expenditure relating to the delivery of counselling and training sessions and support costs for the charity generally.
Governance costs are deemed expenditure for statutory responsibilities and other consultancy fees.
All costs have been directly attributed to one of the functional categories of resources expenses in the SOFA.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Charitable Income
Charitable Income
Counselling income
Training income
Earned income
Counselling , Mentoring , Training and Employability Services
Counselling , Mentoring , Training and Employability Services
Employability support costs
Rent & r oom h ire
Training
Travel a n d volunteer costs
Woman's s pace costs
Loan interest
Memberships
Counselling Expenses
Purchase of goods for resale
Advertising
Bank charges
Heat & light
Insurance
Office and property costs
Professional fees
Postage
Repairs and renewals
Telephone
Sundry expenses
Governance costs includes payments to the independent examiners of £ 1,640 (2020- £ 520 ) for examination fe es.
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
No trustee was reimbursed for travel expenses (2020 - £111)
The average monthly number of employees during the year was:
The listed investments have a historical cost value of £23,462 (2020 - £14,379).
The Capital Restricted Fund represents monies used to buy the Company's property together with the loan finance.
The funds from the Robertson Trust include paying for the Project Manager and the running of the Womans Space plus associated running costs.
The Workshop project includes funding from Highland Drug and Alcohol Forum, Corra Foundation, Trusthouse Foundation and the Big Lottery to setup a woodworking project for young men with ill health in Fort William and the wider community facilitating a suicide prevention programme and support groups.
Employment Grants are funds received from SCVO through the Community Job Scotland to create job opportunities for unemployed people aged 16 to 29.
Scottish Children's Trust was funding to provide devices or equipment to vulnerable people in the community with mental health risks. This was used to provide broadband and laptops.
Awards for All funding was received to provide counselling, mentoring and emotional support to Lochaber High School (LHS) pupils from S1 to S6.
SCVO Cyber Essentials was funding for assistance to guide the charity through cyber security and attain accreditation.
Non-Adjusting Post Balance Sheet Event
At the date on which the financial statements were approved, the financial implications arising from the Coronavirus (Covid-19) outbreak, which has affected the UK, are starting to reduce in severity. The trustees have reviewed forecasts for an anticipated change in the charity’s operational activities in the short term and agree the funding and reserves are available to cope with the changes. The trustees are of the opinion that the Covid-19 outbreak is a non-adjusting Post Balance Sheet event and that the charity remains a going concern.
There were no disclosable related party transactions during the year (2020 - none).