NAFC Marine Centre University of the Highlands and Islands Shetland Fisheries Training Centre Trust Trustees, Report & Statement of Accounts l April 2020 to 31 July 2021 SHETLAND FISHERIES TRAINING CENTRE TRUST TRUSTEES, REPORT I APRIL 2020 to 31 JULY 2021 Table of Contents Introduction... Objectnies of the Trust............................................................................ Main Achlevements During 2O2￿2l....... Assessment of theTrust's Piogress. Finandal Revlew. Future Plans......................................................... Reference & Administrative Detail5.............- Structure, Governance and Management..................................... Independent Auditof's Reportto theTrustees.........................-- .10 Statement of Financial Actwrties...... .14 Balance Sheet..................... .Is Statement of C45h Flows....................................................... .16 Notes to the Financial St3tementS.............. .17 NAFC Marine Centre is the operatin6 name of the Shetland Flshevles Trainin8 Centre Trust Scottlsh Charltv Mumber SC003715 NAFC Marine Centre is an academir partner of the University of the Hl8hland5 and Island5 The Trust is a Management A8ent for the Shetland Islands Coun¢ll SHETLAND FISHERIESTRAINING CENTRE TRUST TRUSTEES, REPORT I APRIL 2020 to 31 JULY 2021 Introductlon The NAFC Marine Centre INAFCI 15 the oper*in8 n3me of the Shetland Fisherie5 Tr3inin8CentreTrust ISFfcT]. The NAFC Marine Centre w35estsblished to provide trainingfor Shetland'sfi5hing and aquaculture industrie53nd D￿ned in 1992 lès the North Atlantic FishèriÈs CollÈ8el. The CÈntrÈ's nèmÈ was chan8ed to rhe NAFC Marlne Centre In 2005 to reflect the increasing range and scope of the trainin& research and other artwities bein8 undertaken. Thecentre Isan ècademicpartner In the Universityefthe Highlands & Islandsand isnowformallyknowr*asthe WIFC Marine Centre UHI. The Centre occupies a campus at Port Arthur in Scalloway. The campu5 comprises several buildings which provide offite, clèssroom, workshop and laboratory space, as wdl ès a public library, a marine hatchery, self-catering student occommodation, and a550flated facilitie5. The Centre a150 oper3te5 several trainin& survey and research vessels. Further information about the Centre is availèble on rtswebsite". w4Y%w.nafc.uhl.ac.uk SHETLAND FISHERIES TRAINING CENTRE TRUST TRUSTEES, REPORT I APRIL 2020 to 31 JULY 2021 Oblertlves of the Trust The signifitant chèrit3ble 3ctivitie5 and achievement5 of the Shetland Fisheries Training Centre Trust during 202t>21 are summarised below againsi theTrust's charitable objectives.. Tosecure the est¥bllshmeTrt, maintenance and mana8ementof a Shetland Flsherles fralnlng Ce*treTrust to provide forni41 and informal educètlon indtralnlng Inall aspertsolthe Shetlandflshln8 Industry Includlng Ilsh catchln& fl$h proces￿￿& fish familng, marlne en¥ineerin& navi8atlon. seamanship. research and all related anclllaryartlvitles. The Trust tontinued to operate effectively during the period covered by thi5 report, and to maintain and opèrate thÈ NAFC Marine Centre campus to deliver the TrusV5 objectives. The Trust had an active group of cornmitted and professional twstees who met regularly and made a 8enuine tontribution to the management of theTrvst and Its activities. The NAFC Marine Centre, undèr the Trust'5 direction, has delivered a large number of trainin6 courses relevant to Shetland's maritime industries (see below under Objèctive 21. The Centre has cèrriÈd out a range of research project5, scientific work. ènd other artivities relevant to Shptland's fishing and èouaculture industries Isee below under Objective 31- To eduratethe publlcRenÈrally and those invdved with the fflarlne en￿ronme￿ abo￿ seamanshlpahd navl8ation, the skills required both by ihe Sh*land hshinÈ industryi Particularly In relation to sustalnable flshln& and by ihose Involved vAth the sea adjacent to the Shetlèno Islands and elsewhe¥e. The NAFC Marine Centre. under the Trust's direction, h3s continued to deliver a wide range of t¢aininÈ courses in subject5 relevant to Shetland's maritime industries, int5uding in fish catchin8, aquaculture. marine and shore-based en8ineerin8, navi8ation and seam8nshipi to a lèrÉe number of students. Coursesrangedfrom one-day safetyand other professional development courses to modern apprenticeships, flshing ticket courses, and the Centre's three-year mwchant navyofficer Cadet pro8rarnMe. The majority of these students were5hetlènd residents undertakingtraining for profe55ional development purposes. To proM￿e sclentlflc research Into the marlne envlronmenL mavlne renewables and a Sustslnablt fishlng Industry and to 115e the rewlis thereol to PrO￿de training and to promote best practice. The NAFC Marlne Centre, underthe Trust'5 dirertion. has continued to carry out a range of scient*fit aCtI￿tieS r4evont to Sheil3nd's rnarine envlronment and rnttritime industries, including In the fields of aquaculture. fishin8 and mèrine To promote. protert, Cl)mseThe, rehabjlltate and Improve ihe marlne enWronmetrt, Imtludln81ts anlmals and plant Ille. In Ihe seas adjacent to the Shetland151arbdsand elsewhere. Many of the stientthc research projecrs and activities carried out by the NAFC Marine Centre are relevant to the protertion of Shetland's mèrlne environment (see above under Objective 31- To promote8rtd pre5erv?the hpritaBe olboth theShetlandhshlnÉ Indu#ry amdthose1nvo1ved￿th the sea adlace tothe Shetland 151ands and elsewhere. Thè shetland Island5 marine spatial plan provides for the protettion of she￿and's rnarine heritage through speclfic pollcie53nd data provision. SHETLAND FISHERIES TRAINING CENTRE TRUST TRUSTEES, REPORT I APRIL 2020 to 31 JULY 2021 To h￿dthe Trnst Fund attheTru#ees soledlscretlon to make irants. I￿n$ or paymentsout ￿the Income orcapltal of the Trustlynd for these objects or any of them or for such other purpose of purpose5 chJrltable in law SDlely for the benefft of the Shetland I￿and5 or of the InhabltJrrts of those I￿and$ as ihe Trustees shall dwermlne.. Dedarlns th•t such grants or loans may be made on such terms and subject to such condltlons as the Trustees may thlnk flt and In the case of loans vthh or wIthO￿ securlty and such term5 as to Interest, 11 any. and repayrnent as the Trustees their 501e dlscTetlon thlnk proper: Declarln8 fvrther that no art of the Twstees shall be Oeemed to be ultra ¥lres by reason only that persot)s whoare not lTrhabltants of the Shetl•nd 151ands mayar wlll benefit Indlrectly by suth art. The Trust tontlnues towork towards thls objective. however. no specffjic artlvty has been condvcted In 202￿21. To undertake suth other PLwptrse or purposes chrltèble law sdely for the beThe1￿ ol the Shetland Island5 or the Inhabltants of th05t Islands a$the Trustees may from tlme t0￿rne detemilne. The Trust contlllUP5to work towHrd5 thi5 objective,. however, nu 5pecthc activity has bttn condurted in 202￿21. Maln Achlevements Durlng 2020-21 Morethan I,1￿ students enrolled on courses covering both Higher and Furthef Education. Assessment of the Trusvs Progress The Shetland FisheriesTrainin8 Centre Trust ttrntinued to fulfil its princlpal objettives durin8 202fy21, by.. Operètin6 effertively under the direction of its actlve and ccmmitted trustees who have met regularly Maintaining and operating the NAFC Marine Centre campus to provide the facilities and resources necessary to delwer its objectives as re8èrds trèininaand re5parth (Objective 11. Deliverin8 a large number of training courses relevant to Shetland's maritime industries to a large number of Students IObjectNe5 1 & 21. Carrying out a range of research prolects relevant to she￿and'S marine environment and marStime industries (Objective5 1, 3. 4 & $1- thou8h there hasbeen no èctivity a8aln5t 6 and 7. these areregafded as lower prioritiesorare not Op￿IcabletO theTrusVs current mode of busine55. SHETLAND FISHERIES TRAINING CENTRE TRUST TRUSTEE5' REPORT I APRIL 2020 to 31 JULY 2021 Flnanclal Revlew For the period 2020121 the Trust reported net expenditure, excluding restricted grant funds, of £208.60112020.. deficit of £548.0141 prior to the actuarial movement on the defined benefit pension scheme. This 1055 Is primarily due to trading conditions duringCOVIO-19 period which limited onsite practical learning. Theeffect was mitlgated through securing COVID funding from Pivotal Enteryise Resilience fund and the Colonawrus Job RÈtention Stheme, plus moving to online deliverv and developing new online COUfSes. Part fundin8 for some cost5 a5SOClated with the pro8ressing rneraer was secured. includingadditional 5taffingand legal costs. however theTrustwas left to covèr ￿rne toststhat should h3veotherwise been met by other partner The actU3rial valuation of 31 July 2Q21 results in an actuarial1oss of £3.457,(￿oI2Q2o.' 83in of £616,[K￿l. This is primarilv due to investment return5 being significantly lower than expected and changes in assJmprions increasin8 liabilities. Assurnptions used for inflabon, salary increases and discount rates. asa result of the triennial actuari3lvalu3tion, are generic to the sd)eme and are a snèpshot as at 31 July 2021,. they do not nece55arily reflect the actual results that would relate to the Trust. As at 31 July 2021. the charity had net a55et5 of f949.76512020.' £1.191.9851 excluding the pension li3bility of £6,763,IKKJ, which the Trustees consider to be è lon8-term liability, ijnlikelyto Cry5tallise in the twefve monthsfrom the date of approval c>f the financi31 statement5. The re5uIt5, inclyding the pension scheme deficit. result In an overall net defitit of £S,813,23S 12020.. deficit of £2.114.0151. As a pension scheme employer, the Trust executed a Deed of Agreement and Guarantee for transmi55ic>n of the Transferor's Liabiliries ISFTCTI to Transferee (Shetland UHII on successful completion of merger. The shetland Islands Council a8rèed to provide a guarantee in connection with the Transfer Risk Review The Trust has condurted a re￿ieW of the major risks to which the SFTCt is exposed. and systems have been established to Afvll corporate risk re8lSter is maintained and reviewed bythe Director and approved by the Board of Trustees. Internal risksare minirnised by the irnplementation of protrdures forauthorlsatlon of all aCt￿ltIeS, projerts and transattitsns to ensure consistent qual￿ and these procedures are revie%Yed re8ulèrly. Reseryes Poli The main airn ofthe re5eNespolicy Istoensure thattheTrust holdsadequatefundsto manage shorttermvolatilityin income or liquidity and to maintain its longer sustainability. The policy aims forthe Tru51 to hold enough funds to meet four months avÈra8È ope¢atin8 costs, In order to provide adequate working capital levels for the continued operation of the Trust and com￿et10n of existing projects. The net bookvalue of capital assetsat31July 2021was £383,756and approximJtely 38% of this is matd)ed by the restncted capital reserve 01 £145.488. With the remainder matched from unrestricted reserves of £238.270. Relevant expenditUTe for 2020121 was £3,842,647, the majority of depreciation If 182,7171 does not need to be considered as this Is covered by amortlsation of capital grants which were received tD fund thp purthase of 35sets. Therefore, the target 15 £914,983 in general unrestritted funds. SHETLAND FISHERIES TRAINING CENTRE TRUST TRUSTEES, REPORT I APRIL 2020 to 31 JULY 2021 The level of vnrestrirted and undesl8Dated reserves available to the charity Bt 31rt July 2021, excludin8 the pension li3bility, is £804,277. Therefore, the wlicy ha5 not been mÈt at Ènd of period however this wa5 a consequence of guidingthe Trust thrDvgh to successful merger. Asa re5vlt of A55etTransferAgreement èny remainin8 funds would be transferred toSheU3nd UHI on winding up of Trust. Future Plans In December 2018Tru5tees a￿eed in principle to merge wilh shetland College & Train Shetland 5ubjpct to condltionswhich included the p￿￿5￿￿ ce5Sètion costs of NAFC being met. SIC have agreed to thi5 and è ministerlal business case for rnerger was subsequentlydeveloped and 3pprovpd by both mer8itygpèrties before being submitted to the Scottish Fundin8 Coun£i1. An Asset Transfer Agreement was completed and signed by Trustees on July 2021 and a11 assets and operation5 were transferred to Shetland UHI following è8reement from OSCR. Frc*n ill Au8U5t 2021 the artivities, assets and staff operated a5 part of Shetland UHI. The Trust ceased tradin8and wlll be de-re￿stered from OSCR as a charity. SHETLAND FISHERIES TRAINING CENTRE TRUST TRUSTEES, REPORT I APRIL 2020to 31 JULY 2021 Reference & Administrative Details Namo of Charlty.. Shetland FisheriesTr31ningCentre Trust Charity Numbor.. SC(Q3715 Reglst@rÈd Addrès5: NAFC Marine Centre. Port Arthur. Scalloway, Shetland, ZEI OUN CurrentTrurtee& Independent Shetland Fishern)en's Associa￿On SeafoodShetL4nd Independent lTrdependent Independent (Chairperson) Indèpendent Independent Trustees Standlfil Down l)uvlng the Vea¥- Indèpeftdent IResi8ned 2Ph Oecernber 20211 Independent IAesigned 15th September 20201 tHrÈrtor'. (Termination ef employment 3LF' july 20211 The A9 Partnership Ltd, 47 Commèrcial Street, Lerwck, Shetland. 2EI ONJ Bank: Clydpsdale 8ank PLC, I(AS Comrnerci31 Street. Lerwick. Shetland, ZEI OJJ SDlldtors'. Harper MacLeod LLP Inurce of the chartyfof that period. In preparing thesefinancial statements. the trustees are reouired to: Select 5Yltable accounting policies and then arply them censisteTrtly'. Observe the method5 and principle5 in the Charifies SORP 2019 IFRS 1021.. Make ju(J8ements and estimate5 that are reasonable and prudent., State whether app41¢a￿e accuuntill8 Standards have been followed subject to any mateTi31 departure5 d15c105ed and explained in the finarKlal statements. Prepare the finarrial Statem￿t5 on the going concern ba515 unle55 It 15 Inapproprlate to presume that the charrty wlll contlnue in operation. The trustees are re5ponslble for keeping proper at¢ountin8 recoros that disck)se with reasonable accuracy at onytime the financial position of the charity and enable them to ensure that the finèncièl statements comply with the Ch3ritiEs and Trustee Investment (Scotlandl Art 2LK15, theCharitiÈsAccounts (Scotlandl Re8u13tions 2C(J6135 amended) and the provision5 of the charitvs constitution. They ale also responsiblè fer safe8uardin8 the assets trf the charity and hence for takin8 reèsonable steps for the preventiun and detection ol fraud and other irregularities. Scalloway Date.. 2L)E 10 SHETLAND FISHERIESTRAINING CENTRE TRUST INDEPENDENT AUDITOR'S REPORTTO THETRUSTEES I APRIL 2020 to 31 JULY 2021 Oplnlon We have audited the financièl statements of The Shetland FishEriesTrainin8Centre Trust for the perSod ended 31July 2021 whlch comprise the Statement of Fin3nci31 Activities. the 83lance sheet, the Cish Flow Statement and the re13ted note5, inclu(Jin8 a summèry of significant accounting policies. The financièl reportin8 framework that has been applied in their preparation is 3pplicable13w and United Kin8dom Accounting Standard5, includin8 FinarFtial Repartin8 Standard 102 The FinLTncioI Reptrrtin9 sfimdord opplittsble in the UKtsnd Republit ol Irelond (United Kingdom Generally Accepted Accounting In our opinion the finèntial statements.. give a true and f•ir view of the state of the chariVs affairs as at 31 July 2021, and of its incomin8 resources and èppllcation of re50urce5, for the year then ended, hove been PToperly prepared in accordonce with United Kin8dorn GenerallyActepted AttountingFtrèctice,' and have been prepared in accordance with the requirements of the Charitles and Trustee Investment (Scotlandl Act 2005 and regulation 8 of the Charities Accounts Iscotlandl ResulatlOn5 20C6. Basis for opinion We condurted Ouf audit in atcordance with Intprnational Standards on Auditln8 IUKI 115As IUKII and applitAble law. Our responsibilities under those standards are further described in the Auditor's respon%bilities for the avdit of the financkil statèments section of our rèport. We ère independent of the charity in accordance with the ethic31 re4uirÈmÈnts that are rdev3nt to our audit of the financial ststements in the UK. Including the FRC'S Ethical Standard, and we have futh'lled cur othèr ethical responsibllities in èccord3nce with thÈsÈ requirÈmÈnts. We believe that thÈ audlt e￿dence we have obtalned 15 sufficient and appropriate to provide a basis for ovr opinion. Emphasls of Matter- flnanclal statements prepared on a non-8oln8 concern basls We draw attention to note la in thefinano31 statements, which explains that the charity integration prrKes5for Shetl3nd's Tertiary Sector has taken place on 3￿h July 2021, with èll activitie5, assets and liabilitie5 bein¥ transferred to Shetland UHI on ltt AuBU5t 2021. The trustees, therefore, do not Cons￿ler it to be appropri3te to adopt the 8oinB concern b35is of 8CCOUnting in preparing the financial 5tatement5. Accordingly, the financial statements have been prepared on a non-going concern bas15 as described In Note la. Our ownion is not modlfled in respect of this matter. Other information ThÈothÈr information comprises the inforrnation intluded in thetru5teès' annual report, otherthèn thefinantièl statements and our auditorfs report thereon. The trustees are responslble for the other Information contained wlthln the 3nnu31 report. Ouropinion on the financial statements does notcover the other inforrnation and, except to the extent otheThvi5e ex￿1C1t1Y stated in Our report, we do not expres5 any form of assurance conclusion thereon. 11 SHETLAND FISHERIES TRAINING CENTRE TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES I APRIL 2020 to 31 JULY 2021 Other information (continued) Our respansibility is tD read the other informotion and, in doing 50, consider whether the other information Is materially Inconsistent with the financlal statements. or our knowledge obtainèd in thÈ audit or otherwise appear5 to be materially llllS5tated. If we identrfy such material incon515tencies or apparent material mi55tarements. we are required to determine whether there 15 3 m3terial misstatement in the financial sratements or a material misstatement of the other information. If. based on the work wè have performèd, we tonclude that there is 3 fflaterial MI￿tateMent of this Other information. we are required to report that fact. We have nothingto report in this regard. Matters on whSch we are requlred to report by ex¢eptlon We h3ve nothing to report In respect of the following matters In relatlon to which the Charities Ateounts IScotlaTrdl Regulations 2006 requSre us to report to you if, in our opinion.. the Information Ewen In the financlèl statements is inconsistent Ih any rnaterial respect with the trustee5' report.. er proper accountin8record5 have not been kept. or the finanoal statements are not in agreement with the accounting records., or we have not received a51 the information and explanations we rèquire for our audit. Responsibilities of trustees As explained more fully in the trustee5' responyb-lities statement set out on page 9 the trustees are responsiNe for the preparation of financial statements which 8iVÈ a truÈ and fair view, and for such intprn31 control a5 the trustees determiThe is necessary to enable the preparat￿n of financial statements that are free from materlal misstatement. whether due to fraud or error. In preparin8 the finèncial 5t3tements, the trustees are fespon5ible for asses%ng the charSVs abillty to continue as a 8oln8 concern. d15closin& as 3ppllc3ble. matters related to 8Din8 toncern and using the going concern ba515 of accounting unles5 the trustee5 either intend to liquidate the charity orto cease operatic*ns, or have no reallstic akernative but to do so. 12 SHÉTLAND FISHERIES TRAINING CENTRE TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES I APRIL 2020 to 31JULY 2021 Audbtorfs respon51bllltles for the audlt of the flnanclal statement5 We habr been app•nted as 3uditor under secbon 44llllcl of the Charitips and TrustEe Investment Iscotlandl Act 2005 and report accordan￿ wSth re8ulatlons made under that Act. Our objertNes are to obtèin reasonèble assurance èbout whetherthefinancial ststementSa5 3 whole arefree frorn rnaterial mi55t3tement, whether due tD frèud ur error, to issue aD auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but Is not a 8uaranteethat3n audit condurted in accordance with1SAs IUKI will always detect a m3teri31 mi55tatempnt when it exist5. MisstètèmerTrts can arise from fraud or error and are considered material If, individually or in the a8gregète, they could reasonèbly be expetted to Influence the economic decisions of user5 taken on the basls of these financial statements. Irregulèrities. indudingfraud. are Instances of non-compliance wr(h law5 and regulations. We design procedure5 in linewith our responsibilities, outlined above, to detect material misstatements in respertof irregulèrStles, Includlngfraud. The extent to with our procedures are capable of detectinE Irregularit￿$. including fraud, i5detsiled below.. Based on understandin8 of thecharity3nd ItsoperatSngartwities.we identified rhat the principal risksof non-cornpliance with law5 and regulations related to UK tax lew51ation, pensions legislation, employrnent regulation and health and safety regulation and we considered the extent to which non-ctrmpliance mi8ht havea material effecton thefinandal staternents. We also tonsideredthose lèws and regulationsthathavÈ a direct impatt on the preparatlon of thefSnancièl statements such as SORP FRS 102. We waluated managements, Incentlves and opportunllesforfraudulent manlpulatlon of thefinanclal statements lincludtng the risk of override of controls) and determined rhat ihe principal risk5 were re13ted to P05ting m3nu31 journal entrie5 to manipulète financièl perfomiante, management bias through judgements and èssumptlons In sl8nthcènt accounting estymates. Our èudii procedure5 were desienedto respond tothose Identifvèd nsks, includinE non-compliance with lawsand regu13tions lirregularitiesl and fraud thèt are material to the financial statements. Out audit procedures Included, but were not limited L*scus510ns wlth management on their pollcies and procedure5 regarding compliance with law5 and regu13tlOn5.' Comrnunicèting identified laws and re8ulation5 throu8hout out engagement teèrn and remaining alert to anv Indications of non-compliance throughout our audit-, Consi(Serln8the risk of acts bythe ch3rity which were contrary to appllcable laws and regulations. Sncluding fraud.. ond Reviewing legal fees incurred in the year for indication5 of non-comrAiance or litigation. Our audit procedures in relation tofraud included, but were not limited to.. Makin8 enquirles of manAgèmont on whether they had knowledge of any 3rtual. svspetted or alleged fraud., Gaining an understanding of the internal contro15 e5taNi5hed to mitl8ate risk5 related tu fraud,. and Addressing the risk5 of fraud through rnanagement oveiride of contro15 by perforrningjournal entrytestlng. 8ecause of the inherent1Smltations of an audit, there is a rlsk thatwewill notdetett all irre8ularlties, includln8th05e leading to a m3teri41 mi55taternent in the financial 5taternents or non-compliènre with regulation. This risk increases the more that compliance h￿th a law or re8ulation is removed from the events ènd transactions reflected In the financlal statements. 35 we will be les5 likely to become aware of inst4nce5 01 non-compliance. The risk 15 also greater regarding irregularities occurring due to fraud rather than error, as fraud inVo￿e5 intentional Concealment, forgery, collusion, orni5sion or misrepresentstitrn. 13 SHETLAND FISHERIES TRAINING CENTRE TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES I APRIL 2020 to 31JULY 2021 Auditorfs resPQ115ibilities for the audit of the financial statement5 A further descrlptlon of our responsibilities is èvailable on the FRrys website at.. htt nce ww%v.frc.or audit- This description fofms part of oui auditor's report. Use of our report This report 15 made solely to the charity'5 trustees, 35 3 body, in 3ccordance with Re8ulation 10 of the Charities Account5 (Scotlandl Re8ulatlons 2tK16. Our audit %York has b@en undèrtaken so that WÈ might state to the tharitys trustees those matters we are required to state to them in an auditorfs report and fer no other purpose. To thefiJllest extent permitted b¥ law. we do not accept or assume responsibility to anyone other thèn the chèrity and the chariws trustee5as a body. for our audit work, for this report. orfor the opinions we have formed. af the application of the non-going concern basis of accountin& b. Crlt5¢al A¢countlnB Estlmate5 and Areas of Judgement The charlty mèkes e&tim3tes and assumptions concerning the future. The charity h45 not identified any estimates or assumptions that have a significant risk of causing a matErial 3dju5tment to the carryin8 amount5 of 3S5ets Bnd Funds With the adoption of the ststement of recommended practice, funds require to be classified between restricted funds which are subject to specific twms as to their use laid down by the donor and unrpstricted funds which can vsed at the di5CTetion of the Tru5tee5 in the lurtherance of the objective5 of the Trust. All funijs held as Restricted Fund5 are funds that have restrictions imposed by donors and can only be applied for the partScular purposes specifted by thè donor. 18 SHETLAND FISHERIES TrAINING CENTRE TRUST NOTES TO THE FINANCIAL STATEMENTS I APRIL 2020 to 31 JULY 2021 c. Funds Icontinuedl Permanenr Restricted Grant fund5 are grant funding th3t ha5 been received in respect of specffic capltal expenditure. The èmount transferred between furFds relates to the amortisatlon of the capitalised grants. These ants are amortSsed over the useful economic life of the a55et5 the grants were recewed for. Amounts are also transferred in relation to the purchaseof fixed assets. d. Statement of Financial Activities This statement disc105e5 all income and capital resources at)d expendlture and contalns a reconciliation of all movements of theTrust's funds. Pensions: Defined Benefit Scheme Employeesafeeliblblefor membershipofthe LocalGO¥ernmentPen￿0n scheme, a multl-employer defined beneflt 5tstutOry scheme, administered by Shetl8nd Island5 Council in accordance with the Lottl Govemment PensSon Scheme IScotl3ndl R28ulations 1998 as amended. The contributions to the scheme are charged to the profit and loss account so a5 to spread the cost of pensions over the 5eYvice live5 of employees. Variation5 from the regular cost5 are spread over the avera8e expetted remalningwoik lives of current members In the scheme. Terminatlon Beneflts Terminètion benefits are payable when employment Is terminated bythe charity before the norrnal retirement date, or whenever èn employee èccepts volunt3ry redundancy. Such benefits are recoEnised when the charity Is demon5tTably committed to terminating the em ￿0yrnent without withdrawal or when 3n offer of voluntary redundancy Is accepted. g. Income As a general principle, irKome 15 reco8ni5ed in the Statement of Financial Activities when a transèction or other event results In an Increase in the charlty's assetsora redurtSon In Its liabllltie5. Income Is only recognlsed when all of the following criteri3 are met.. Entitlement.. control over the rights or other acce55 to the economic benefit hos pa55ed to the charity. Probable.. it is more likelyth3n not that the econornic benefits3550ciated with the transaction or aift will fluw to the charity; and Me35urement.' the monetary value or amount of the income can be measured reli3bty and the cost5 incurred for the trans8rtlon and the costs to complete the transèction can be measured reliably. Gratrts are recognlsed when the entltlement to the grènt is cot)firmed. Grants are deferred If the expenditure the grant was iecewÈd for was not m3dE in the year the grant was received. l income is directfy attributed to the rdev3nt PTolert the income wa5 received for a5 Stated in the grHnt offer letter. Donations, le8èC4es and similar incomin8 resources are induded in the year in which they are receivable. which Is when the charity become5 entitled to the resource. 19 SHÉTLAND FISHERIES TRAINING CENTRE TRUST NOTES TO THE FINANCIAL STATEMENTS I APRIL 2020 to 31 JULY 2021 g. Incorne Icontinuedl No rent is chaf8ed to SFfcT for the cdlege properties. No value for a commercial rent h35 been Included 35 donation in the Finanoal Statements as a value Is not eèsilyestabllshed or quantifiable due to the sppc1a￿1st ll3ture of the college properties. h. Value Added Tèx Irrecoverable value added tax is written off when the expenditure to which it rdates is Incurred. Resources Expendèd All expenditure Is accounted for on an accruals basis and is recognised when there 15 a legal or ronstrurtwe obligation to pay for expenditure, it 15 prob3ble that settlement will be Tequired. and the amount of the obligation can be measured reliably. ￿1 costs have been directly attributed to one ef the furKtional tate8oriÈs of resources expended In thè Statement of Financial Activitie5. Support costs are those functions that asslst the work of the charity but do not directly undertake charitable artwrties. These costs Includè staff 531aries, overhead5 and governance c05t5. ￿1 costs are allocated between the expenditure cate8orie5 of the Statement of Financlal ActivlUes on a baslsthat reflerts the usp of the resourte. Tan8lble Flxed Assets TanÉible fixed assetsarè stated attost orvaluatian, net of depreciBtIDn and any prov1540n for impairment. fixed asspt5 are initially stated at cost. The value below which fixed assets ère not capitali$ed is £S,(MK>. Depreclation Is providÈd on all tsngible fixed asset5 at rates calculated to wrlte off the cost or valuatlon, less e5tirnated Tesidual value, of each asset over its expeited useful live5, as follows.. Leasehold property 20 or IOyear5 straight line 8oats En8ineerln8 Equlpment Fixtures and Equipment Metof Vehicles 3 or 5 years strai8ht line tibrary Equipment ftesidu31value represents the estimared amoJntwhich would currently beobtèinedfrorn disposal of an asset, after deductineestlmated costs of disposal, if the asset were already of an ageand in the condition expected at the end k. Forelgn Currencies Assets and IiabilitiÈs in foreign currencies are tran￿ated into sterlin8 atthe rates of exchange ruling Jt the bal3nce sheet date. Transactions in foreign currencie5 are tianslated into SterlinÉ at the rate of exchange rulin8 at rhe date of the transactlon. Exchan8e differences ère taken Into account in arrivin8 atthe net Incomin&outgoin8 resources. 20 SH￿LAND FISHERIESTRAINING CENTRETRUST NOTES TO THE FINANCIAL STATEMENTS I APRIL 2020 to 31JULY 2021 Debtors Trade and other debtors, that are recdvablewithin one year, are mÈasured at their recoverable amounts and IrKI￿le amounts owed tothe charity forthe provision of goods and semces or ameunts paid In advance for Or￿d5 seNKes that the charitywill receive. m. Liabilities Liabilitiesayise from legal orconstruttNe oblS6ationsthat commit the charity to expenditure. A liability and rel¥ted expenditure is recognised when all of the following cnteria are rnet.. Obli8ation-. a wesent le8al or tonstructDie obligètion exists at the reporting date as a result of a past event-, Probable.- it Is more Ilkely thèn not that a transfef of ecenomK benefits, often c?sh, will be required In settlement., 3nd Measurement.. the amovnt of the obligation can be measured or estimated reliably. a￿litIeS that are cla551fied as payable within one year on initial reco8nition are measured at the undi5CQUllted amount of cash or other conslderation expected to be pald. Amounts are included in liabilitie5 when author15ed and committed. n. Cash at bank ènd In hand Cash èt bank and in hand Is held to meet the short-temi cash commStments as they fèll due rèther than for any investment purposes. o. Flnanclal Instruments Thecharityonlyh3sfin3ncial assetsand liabilitiesof a kindthatqualifyasbasicfinancial instruments. Ba5icfinancial In5trurnents ore initially measured at their transaction value and 5ubsequentlymeasured attheir Settlement vèlue. 21 SHETLAND FISHERIES TRAINING CENTRE TRUST NOTES TO THE FINANCIAL STATEMENTS PERIOD ENDED 31 JULY 2021 INWTMENTIFICOME 31stJuly 2021 31st March 2020 LIN¢strict*O Fundi le5trfrted Fund5 REStrttttd Gr¥ntFund Funds Funds 429 429 2.487 In2020. all 1nve5trnentinirynewp5¥ttT1￿tab1etO￿￿[￿tricIed lund> INtOMEFROM CTrIARtTABiEAcnvmE5 3151July 2021 Total Funds 31st March 2020 Vmestrlcted Funds flestrfcted Fwds Restrftttd GrnntFunOs Funds FundiDICoufitil Éiants Tuition fee5 & educa￿ana1 Loniracts Research 8Tants & contracls Consultancy Incame Management and 5eThicefees Otherinccrfne 1.520.36S 778,371 578.1 136.190 60.102 409.723 117,141 1.637.506 778.371 578.105 136.190 60.102 409.723 779.566 741.830 558.510 124.9SO 79.658 105.482 3.482,B57 117,141 3.599.998 2.389.996 In2020 £198 of incomefrarn tharitsble actiwtyeswas altributsbleto restrithed lunds.The balanceolE2.389.798wès 3ttiibutè￿t1O utlrtstliued funds. 22 SHETLAND FISHERIES TRAINING CENTRE TRUST NOTES TO ThE FINANCIAL STATEMENTS PERIOD ENDED 31 JULY 2021 3tstJuty2021 Total 31srMarch 2020 Totsi Funds ilnr•strf¢t•d R￿£t•d Rdtrf