CHARITY REGISTRATION NUMBER: SC008573 THE BOYS, BRIGADE EDINBURGH LEITH & DISTRICT TRUST Financial Statements 30 June 2024 MCDONALD GORDON & CO LTD Chartered Certified Accountants& statutory auditor 29 York Place, Edinburgh, EH1 3HP THE BOYS, BRIGADE EDINBURGH LEITH & DISTRICT TRUST Financial Statements Year ended 30 June 2024 Page Trustees, annual report Independent auditorfs report to the trustees of the boys, brigade edinburgh leith & district trust Statement of financial acttvities 11 statement of financial position 12 Statement of cash flows 13 Notes to the financial statements 14 THE BOYS. BRIGADE EDINBURGH LEITH & DISTRICT TRUST Trustees. Annual Report Year ended 30 June 2024 The trustees present their report and the financial statements of the charity for the year erided 30 June 2024. Refarence and administrative details Reglstered chaTIty nama THE BOYS. BRIGADE EDINBURGH LEITh & DISTRICT TRUST Charity registratlon number scrJ)8573 Prlnclpal offlGe The trustees Investment Advisers Ralhbones Investment ManagemenL 10 George Street. Edinburgh, EH2 2PF Audltor McDonald Gordon & Co Ltd Chartered Certified Accountants & statutory auditor 29 York Place. Edinburgh. EH13HP Sollcltors Morton Fraser MacRoberts LLP 9 Haymarket Square Edinburgh EH3 8RY THE BOYS, BRIGADE EDINBURGH LEITH & DISTRICT TRUST Trustees. Annual Report (conttnu8d) Year ended 30 June 2024 Structure. govemanu and management The Trust. which was created in June 1927 by the Council of The Edinburgh Battalion of The Boys. Brigade and was re-named in 1998 followirKJ the merger with The Leith Battaiion, is an unincorporated charity and is govemed by its Trust Deed. All maSor flnancial arKI Strategic declsions are male by The Trust￿. The Trustees are all "ex-officio" appointments. In terms of day to day operation of the Trust this is carried out by the employees of the Boys, Brigade Edinburgh. Lgith and Districl Battalion. The major risks to whith the Trust is exposed have been assessed by the Trustees. These particularty relate lo the operaliong and finances of the chanty arKJ the Trustees are satisfied that systems are in Flace lo mitigate exposure to the major risks. The Trustees are all exvofficio appointments see page 1 for further details. Trustees on their appointment are provided with a copy of OSCR'S publication "Guidance and Good Practice for Charity Trustees. as well as copies of the Tru5Vs most recent stslutory accounts. Objoctivos and activlties The Twsl was created to manage certain funds donated to the Edinburgh, Leith and Dislricl Battalion. The surplus each year is treated as set out in the Trust Deed and detailed in note 20 to the Accounts. After meeting ils own costs. the principal use of th8 surplus in the Trust is to fund any deficit of the Edinburgh, Leilh and District Battalion. Any remaining surplus wll be utilised in accordance with the instructions of the Trustees. Achievoments and perfornlance The Stat8menl of Financi￿ Actrvities on page 11 sets out the posibon regwding the use of resources to implement the objectives as set out above. During the year under review Grants tolalling £161,072 12023.. £170,071) werg made lo the Battalion further details in respect of whKh can be found In note 10 to the account5. The Trusfs investrnents. exduding Ns investment propety arwj cash held viti its investment managers have been valued al £1.829.786 compared to £1.680.676 at 30 June 2023. After allowing for net adjustments lo the opening valuation due to acquisitions and dis￿SaIs, this represents an increase in value of 7.25% {2023.' an increase in value of 0.87%). The Trusrs listed investments which orwjinale from the donation in the 2021122 year from the First Leith Tnjsl are held in a separate account from its other listed investments, but both are managed by the same investrnenl managers - Rathbones- have advised that the total return of: the "First Leith" investments was 10.23% over the year to 30 June 2024 which compares wlth an increase in Rathbones Benchmark 3 Total Return of 11.56 % over the corresponding p8ri0d', 115 Other investments was 8.970A over the year lo 30 June 2024 which c#)mpares with an increase in Ralhbones Benchmark 3 Total Retum of 11.56% over the corresponding peri¢)d. THE BOYS, BRIGADE EDINBURGH LEITH & DISTRICT TRUST Trustees. Annual Report Iconllnwd) Year ended 30 June 2024 Flnanclal revlew Income increased from £54,836 to £62,732 and expendtture increased from £192.129 to £570,926 relative to the comparative period. The increase in expendtlure is principally due lo an impaimient in the charity's freehold property of £390,000 in the year. Gains on listed investments for the year were £131,73712023.' gains of £18,026} and gains on investment propety were £150.00012023.' nlll. Nel expenditure for the year wa5 £226.457 {2023.' net expenditure of £119.2671 and Net Assets al 30 June 2024 have decreased by thts amount to £3,447.723. Note 20 to the Accounts explains the nature and purpose of major funds and shows the movements on all funds during the year. Investment policy The TTUSt has circa £2.24 million of fixed asset investments of which approximately £1.91 million is Invested in equkies and fixed int8resl securities on quoted public markets, primarily the London Stock Exchange and is managed by an Investment Director at Rathbones. It should be noted that, at the yoar end. of the £1.91 m. approximately £0.08m was held in cash by the Trusvs investment managers. l fixed asset investments are held primarily to provhde an investment retum for the chaThty. The Trust can adopt a long lemi investment time horizon. The Trust seeks to produce the best financial retum with an acceptsble level of risk. The Trusvs Investment objective is for captt81 growih in excess of CPI +2OA and a stable. growing incomg stream. The Trust Invests lo mitigate long term inflation risk. Capital arKI income vdatilily can be tolerated rf consistent with expectstions. The TrusV5 assets are allocated through investment in Liquidity, Equity-type risk and Divers[f￿r5. With Risk level 3. The Trust has appointed a professional investsnent management fimi (Ralhbonesl to manage the assets on a discretionary basi%. in line with this investment policy. The Trust's asset value and income is monitored monthly by the Battalion Treasurer￿Tustee. Tha trustees review the investment perfomance of the Trusfs investments. exclsjjing properties, against the Rathbones Benchmark 3 ToLIl Return. FfsE Retums. CPI +2% and the investment objective on an annual basis. The investment policy is reviewed on an anTbual basi5 to ensure continuing approprialene5S. THE BOYS. BRIGADE EDINBURGH LEITH & DISTRICT TRUST Trustees. Annual Report {coftllnu•dJ Year ended 30 June 2024 Flnancial review (conlinuEdJ Resep•es and reser¥os pollcy The Trusys totsl reserves at the year end were £3.447.723 of which £9.781 were restricted and £3,437,942 unrestricted. Of the unrestricted reserves £3,042,531 are designated leaving £395,411 of general unrestricted fvnds. The Trust does not al present have a spectfic policy regarding the amount of general reserves it holds. The overall aim 15 to have SLrffiuent fvnds to meet the current and future needs. including its annual deficit, of The Boys. Brigade Edinburgh. Leith & District Battalion (Yhe Battalion") and its Companies. The largest elements of designated funds are a property fuThl of £1.495,OCM) represented by the value of the properties owned by the TrusL £1.416,706 held in respect of the First Leith Trust,. and £64,589 in respect of the Craggan Fund which is designated for use in the maintenance of one of the Trusvs properties. Details regarding the remaining designated funds can be found in note 20 to the accounts. The FiTSt Leilh Trust fund was previously disclosed in the accounts as reslricled, however was transferred lo a designated fvnd in the year Lsnder the circumstsnces as oudined in note 20. The assets of the First Leith Trust are held by R8thbones in 8 separate aocounL More detsils regarding the restricted funds can be fcmjnd in note 20 to the accounts. Essentially all of the assets of the Trust, with the exception of a k)an it has advanced to the Battalion, are either In the form of propety fixed asset investments. Plans for future perlods The Trustees wiN continue lo support the acliviti8s of The Boys. Brigade Edinburgh, Leith & District Battalion and the work of its member companies. The Trustee5 will keep under annual review our properties and investments. to make best use of the assets hekl wthin the Boys, Brigade Edinburgh, Leith & District Trust. The additsonal funds from the Trustees of the 1st Leith C￿nPanY and the income from these funds will be used for the ujrrent modem purposes of the Boys. BrvJade Edinburgh. Leith and District Battalion. THE BOYS, BRIGADE EDINBURGH LEITH & DISTRICT TRUST Trustees. Annual Report (Callllnu Year ended 30 June 2024 Trustees. responslbilities Statement The tnjstees are responsible for preparing the trustees, report and the financial statements in accordance with applicable law and Uniled TrQrvJdom Acc4Junting Standards (United lQngdom Gellerally Accepted Accounting Practice). Under the Trusf5 constilulv)n and the legislation relating to charities in Scolland, the Trustees are required lo prepare financial statements for each financial year which show a true ar5d fair view of the financial position of the Trust and of any nel incomingloulgoing resources for that year, and which have been pri)peily prepared from and which are in agreement wtih the accounting records of the Trust and which o)mply with relevant disclosure regulations. In preparing these financial ststements, the trustees are required to: select suitable accounting polldes and then apply them consistently. observe the methods and principles in the applic8ble Charities SORP.. make Judgments and accoUn￿ng estimates that are reasonable and prudent". state whether applicable UK Accounting Stsndards have been followed. subject to any material departures disdosed and explained in the financial statements.. prepare the fillancial statements on the g￿ng concem basi5 unless it is inappropriate to presume that the charity ￿11 continue in business. The trustees are responslble for keeping adequate accovnling records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any tirne the financial position of the charity and enable them to ensure that the financial statements comply with the Char¢ties and Trustees Invesknents IScolland} Act 2005. the Chartty Accounts (S¢oUandl Regulations 2006, and the provIs￿n$ of the Trust Oeed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for tha prevention and detection of fraud and other irregularities. In the case of each of the persons who are trustees at the time when the trustees report is approvgd.. so far as the Irustees are aware. there is no relevant audit infomiation (irrformation needed by the COMpan￿S auditors in connection with weparing their report) of which the charity's auditors are unaware, arKJ each trustee has taken all the steps that they ought lo have taken as a trustee in order lo make thernselves aware of any relevant audit information and to estsblish that the charity's auditor5 are aware of that information. The trustees confirm that the accounts have been prepared 50 as lo comply with current statutory requirements, Ihe charity SORP {FRS102) and the charity's own goveming document. THE BOYS, BRIGADE EDINBURGH LEITH & DISTRICT TRUST Trustees. Annual Report Year ended 30 June 2024 The trustses, annual rewrt was approved on I g 'Marth 2025 and signed on behaw of the board of trustees by.. THE BOYS, BRIGADE EDINBURGH LEITH & DISTRICT TRUST Independent Auditor's Report to the Trustees of the Boys. Brigade Edinburgh Leith & District Trust Year ended 30 June 2024 Opinion We have audited the financial statements of THE BOYS. BRIGADE EDINBURGH LEITH & DISTRICT TRUST (the 'charity'l for the year ended 30 June 2024 which comprise the statement of financial 8¢tivities, statement of firbancial position, statement of cash flows and the r81ated notes. including a summary of signtficant accounting poliaes. The financial repo￿ng framework that has been applied in their preparation is applicable law and United Kingdom Accounling Standards. including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland {Unrted Kingdom Generally Accepted Accounting Practscel. In our opinion the financial stslements.. give a twe and fair view of the slate of the charity's affairs as at 30 June 2024 and of its incoming resources and application of resources. induding ifs ir￿)rne and expenditure, for the year then ended.. have been Properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice.. have been prepared in accordan￿ with the requiremenls of the charit￿s and Trustee Investment (Scovandl Act 2005 and regulation 8 of the Charitles Accounts IScotland} RegUla￿on$ 2006 {as amended). Basis for oplnion We conducted our audit in accordance th Intemation81 Standards on Auditing (UK) {ISAs IUKI} and applicable law. Our responsibilities under those standard5 are further described in the audiloi's respon5ibililies for the audil of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements thal are relevant lo our audit of the financial statements in the UK. including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirement5. We believe that the audit evidence we have obtairied is sufficient and appropriate to provide a basis for our opinion. Concluslons relatlng lo golng concern In auditing the financial statements. we have concluded that the trustees. use of the going concem basis of accounting in the preparation of the financial 5ts1ements is appropriate. Based on the work we have perf￿med, we have not identified any material un¢ertaintie5 relatlng to events or conditions that, individualty or collective￿, may cast significant doubl on the charity's ability to continue as a going concern fcy a period of at Igast ￿e1ve rnonths from when the financial statements are aulhorised for issue. Our responsibilities and the responslbllllies of th8 tnjslees th respect to going concem are described in the relevant sections of Ihis rewL THE BOYS, BRIGADE EDINBURGH LEITH & DISTRICT TRUST Independent Auditorfs Report to the Trustees of the Boys. Brigade Edinburyh Leith & District Trust Ic0&>lTM￿dJ Year ended 30 June 2024 Other Inforniation The other infomiation comprises the inforniation induded in the trustees, annual report. other than Ihe financial ststemenls arKI our audil0rf5 report thereon. The trustees are ￿sponsible for tho other information. Our opinion on the financk81 statements does not cover the other information and, except lo the extent olherwse explicitly stated in our report. we do not express any form of assuranc8 conclusion thereon. In connection with our audit of the finanaal statements. our respjnsibility is to read the other information and. in doing so. Lyjnsider whether the other infomiation is materially inconsistent with the financial statements or our knowledg8 obtained in the audit or otherwise appear5 to be materially rnisslaled. If we identify such material incon5iStencies or apparent material misststemènls, we are required to delennine whether there is a material misstatement in the financial statements or a material missfalemenl of the other infomiation. If. based on the work we have perforrned. we conclude that there is a material misstatement of this other infomiation. we are ￿Uired to report that fact. We have nothing to report in this regard. Matters on whlch we are requlred lo report by exception We have nothing to report In respect of the folk)wing matters ￿ relation to which the Charities Accounts (Scotlandl Regulations 2006 las amended) requires us to report lo you if. in our opinion= the information given in the tru5tee5' report is inwnsistent in any material respect with the financial statements: adequate accounting re￿S have not been kept: or the financial stslements are not in agreemenl the accwnting records and retums,. or we have not receNed all the information and ex￿nationS we req¥Jire for our audtt. Rèsponslbllltles of trustees As explained more fulty in the trustees, responsibilities stslemenl Iset out on page 51. the trustees are responsible for the preparation of the financial stslements and ft)r being satisfied that they give 8 true and fair view, and for such inlemal control as the trustees detemine is necessary lo enable the preparation of financlal statements Ihal are free from matertal misstatement. wh8ther due to fravd or error. In prepaTtng the financial statements. the trustees are responsible for assessing the charity's ability lo continue as a going concern, discbsing. as applicable, matters related lo going COn￿M and using the going concem basis of accounting unless the trustees either intend to liquidate the charity or lo cease operations. or have no realistic altemative bul to do so. THE BOYS, BRIGADE EDINBURGH LEITH & DISTRICT TRUST Independent Audltorfs Report to the Trustees of the Boys. Brigade Edinburgh Leilh & District Trust {con*Yftu•dJ Year ended 30 June 2024 Audltorfs responsibilitigs for the audit of the flnancial statements We have been appointed as auditor under section 4411 Ilc} of the Charities and Tnjstee Investment (Scolland) Act 2005 and report in accordance with the Act and relevant regulations made or having effect Ihereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whola are free from material misststernent, whether due to fraLKI or error, and lo issue an audrtols reFK)rt thal Includes our opinion. Reasonable assurance is a high level of assurance bul is not a guarantee that an 8udil conducted in accordance with ISAS (UK) will always delect a material misslalement when it exists. Misstatements can arise from fraud or error and are considered material rf. Individualty or in in the aggregate, they could reasonably be expecled lo influence the economic decisions of users taken on the basis of these financial ststements. lffegularities, including fraud. are instsnces of non Complian￿ with relevant laws and regulations. We design procedure5 in line with our responsibilbties. outlined above, lo detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting Irregularitses, induding fraud is detailed below. We gained an understanding of the laws and regulatic*)s applicable to the Chartty and made enquiries of management with regards lo compliance. We focused on specific laws which may have a dlrect material effect on the financi81 statements or the operation of the charity, including the Charities and T￿stee Investment Iscollandl Act 2005. the ChaTtty Accounts {Scolland} Regulations 2006 (as amended), the Statement of Recommended Practice applicable to charities preparing their accounts in accordance wtth the Financial Reporting Standard applicable in the UK and ROI IFRS 1021. Health and Safety laws and the Scottish Charity Regulator {OSCR}. We assessed the extent of compliance wilh Ihe laws and regulations identified above by inspecting any legal correspondence and correspondence from the regulator5 and making enquiries of management. We assessed the susceptibilty of the financial ststements to material misstalemenL induding an understanding of how fraud mbjht occur. by: making enquiries of managernent as to where they considered there was 5U5ceptibility to fraud,. considering the intemal cJJntrols in ￿¢8 to mitb3ate risks of fraud and non-compliance with laws and regulations To address the risk of fraud through management bias and override of controls, w8: perfomied anatyttcal procedures to identrfy any unusual movements.. assessed whether judgements and assumpbons made in detemiining accounb'ng estimates were indicative of potential bias- identified related parties.. evaluated the appropriateness of accounting pjlicies used In response to the risk of irwularities and noTrcompliance with laws and regulations, we desNJned procedures which included. but were not limtted to: setting a level of materiality at the planning stage. induding the basis for detemiining this- agreeing financial slalemenl disclosures to supp(Kting do(#Jm8nts; rev￿wing minutes of meetings.. THE BOYS, BRIGADE EDINBURGH LEITH & DISTRICT TRUST Independent Auditorfs Report to the Trustees of the Boys. Brigade Edinburgh Leith & District Trust (ccnllnuffd) Year ended 30 June 2024 reviewing corrospondence from rggulators: enquiring of management as to any actual or Wential litigaticm and claims We did not idenlfy any key audit matter5 relatirMJ to ilregularltles. Including fraud. Because of the inherent limitatrjns of an audiL there is a Tisk that V•E will not detect all irregularities, including those leading to a fflaterial mi5Stalemenl in the financial stslements or nor￿QmPlI3nce with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial slalements. as we wll be less likely to become awaro of instances of non-compliance. The risk is also greater regarding irregularities occurring due lo fraud rather than error, as fraud involves intentional wicealmenL forgery. collusion, omission or misrepresentation. A further description of our re5wn$ibilitw for the audit of the financial statements is locate(l on the FRC website al.. htt www.frc.or auditors audit-assurance auditor-s-res tion-of-the-auditor%E2%80%995-res nsibilities-for onsibilitie5-for-the-audit-of-the-fi de Scri This description forms part of our auditorfs repL¥L Use of our report This report Is made solely lo the charivs tnjstees, as a tw)dy. in accordance with section 44{1 Ilcl of the Charities and Trustee Investment Iscottand) Act 2005 and regulation 10 of the Charities (Accounts) Scotland Regulations 2006. Our audit work has been undertaken so that we might state to the Trustees those matters we are required to state lo them in an audit0￿S report and for no other purpose. To the fullest extent pefmitted by law. we do not accepl or assume responsibility to anyork8 other than the trust. and the Tnjstees as a tM)dy, for our audil work. for this reporL or for the opinions Wg fnmio 25 MOt was due by the Battalion to the TrusL of this amount £15.36512023 - £41,663) relates to monies held by the Battalion in a separate bank account on behalf of the Trust. See note on debtors regarding the terms and conditions of this loan. The Battalion is responwble for the day to day oper8tion of Polock Pavilion. 227 Ferry Road, Edinburgh and the Craggan Outdoor Centre. Ardeonaig. Killin. Both propertie5 are owned by the Trust. No charge is made by the Tnjst to the Battal￿n for the use of these properties. The Battalion Treasurer. Secretary and President exqofficio appointments. are also Trustees of the Trust, being 27