REGISTERED CHARITY NUMBER: SC014107
Report of the Trustees and
Unaudited Financial Statements for the Year Ended 31 March 2024
for
The Orcome Trust
EQ Accountants Ltd 47-49 The Square Kelso Roxburghshire TD5 7HW
Document ID: f5292e54-bbfb-47fa-85f8-87578fa2fc7c
The Orcome Trust
Contents of the Financial Statements for the Year Ended 31 March 2024
| Page | |||
|---|---|---|---|
| Reference and Administrative Details | 1 | ||
| Report of the Trustees | 2 | to | 5 |
| Independent Examiner's Report | 6 | ||
| Statement of Financial Activities | 7 | ||
| Balance Sheet | 8 | ||
| Notes to the Financial Statements | 9 | to | 13 |
| Detailed Statement of Financial Activities | 14 |
Document ID: f5292e54-bbfb-47fa-85f8-87578fa2fc7c
The Orcome Trust Reference ADd Administi'Atii'e Details foi. the YeAI' Ellded 31 MAI'cb 2024 REGISTERED CIL4RrrY SC014107 INDEPENDENT EXAMINER EQ Accoiuitanls Ltd 4749 The Square Kelso Roxbiw8hshire TD5 7HW Page I Do(ument ID: f5292e54-bbfb47fa-85f8-87578fa2fc7c
The Orcome Trust
Report of the Trustees for the Year Ended 31 March 2024
The trustees present their report with the financial statements of the charity for the year ended 31 March 2024. 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 Activities
The charitable purposes of the Orcome Trust, as set out in its constitution are:
-
To promote the advancement and support of any, science, craft, skill or technique and public transport therein;
-
To advance and support artistic, scientific, technological, literary and historical work, study and education;
-
To protect and preserve natural amenities, natural life and any property, whether heritable or moveable real or personal, having historical, scientific or aesthetic interest and the provision, improvement and extension of facilities and opportunities for the enjoyment and appreciation of the same by members of the public;
-
To advance animal welfare by the prevention of unnecessary cruelty to animals, and the succoring and treatment of sick and injured animals;
-
To advance and support of social welfare, social services and recreational and leisure time interests and activities; and - To advance physical and mental health and the prevention and alleviation of disease or physical or mental ailments or disabilities.
The Trust is funded by the income received on the invested assets and furthers its charitable purposes through its grant-making policy.
Grant Making Policy
Possible grants are tabled by individual Trustees, consideration is also made on applications made from public domain.
An application is completed by the potential applicants who are requested to provide full details of the organisation including the costs invoiced in the project, the benefits the project will bring to the area and its target group and beneficiaries.
The trustees meet on a regular basis to consider what grants to approve and any potential projects which may be of interest to the trust.
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Document ID: f5292e54-bbfb-47fa-85f8-87578fa2fc7c
The Orcome Trust
Report of the Trustees for the Year Ended 31 March 2024
ACHIEVEMENT AND PERFORMANCE
During the period 2023-2024 The Trust has continued to invest in groups and projects in Scotland that support its charitable aims.
The grants made are as follows:
| NAME |
2024 |
2023 |
|---|---|---|
| Amma Birth Companions | - | 5,000 |
| Arniston Playgroup | - | 3,000 |
| Autism on the water |
3,000 | 4,400 |
| Benedetti Foundation |
5,000 | - |
| Borders Community Sewing Club |
1,500 |
- |
| Caledonian Environmental |
3,000 |
- |
| Cetacean Search & Rescue unit |
2,500 |
- |
| Dnipro Appeal | - | 6,000 |
| Garvald West Linton |
550 | - |
| Go Youth Trust |
2,000 |
- |
| Mactaggart Scott Loanhead Band |
190 |
- |
| Linton Hotspur Colts FC |
5,000 |
- |
| MEPG Young Musicians | - | 2,500 |
| Pass It On |
5,000 | - |
| Penicuik and District Mens' Shed | - | 5,000 |
| RHET Lothian |
3,000 | - |
| Roslin & Bilston Community Council |
1,500 |
- |
| St Andrews Kirk | - | 4,571 |
| Tweeddale Youth Action Group | - | 3,000 |
| The Cheyne Gang |
3,000 | - |
| The Haddington Garden |
6,000 | - |
| The Wood Foundation |
5,000 | 5,000 |
| West Linton Enterprise Group |
3,000 |
- |
| West Linton Toddler Toddler Group |
1,000 |
- |
| TOTAL | 50,240 | 38,471 |
FINANCIAL REVIEW
Financial Review
The Trust made a decision during the year ended 31st March 2006 to invest in commercial property in order to gain income for the trust and capital growth, and purchased its first property on 31st March 2006.
The Statement of Financial Activities shows a net increase in funds over the year of £134,964 (2023: net decrease £136,398) of which £4,484 (2023: £5,385) related to a net deficit on operations, with net gain on investments of £139,448 (2023: net loss £131,013).
Income for the year is £54,607 which is slightly lower than for the previous year (2023: £61,100) with investment income stabilising as the world economy recovers from the global pandemic.
Net assets have increased from £2,139,172 at 31 March 2023 to £2,274,136 at 31 March 2024 in line with the net increase in funds. Of these net assets, all were unrestricted.
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Document ID: f5292e54-bbfb-47fa-85f8-87578fa2fc7c
The Orcome Trust
Report of the Trustees for the Year Ended 31 March 2024
FINANCIAL REVIEW
Investment policy and performance
Our investment advisors (Quilters) are instructed to invest to maximise the total return on our portfolio of funds within the constraints of a medium to high risk investment portfolio.
The investment brief is broadly defined but the ethical criteria prohibit investment in companies that manufacture armaments or tobacco. The high levels of stock market volatility and the continuing uncertainty continues to make the management of investments difficult. The charity is a long-term investor and the trustees, on professional advice, continue to hold a mixed portfolio of equities, bonds, cash and other investments designed to provide a level of stable income and the possibility of investment gains.
The equity component of the investment portfolio is weighted with medium appetite for investment risk with the main exposure to investments in the leading advanced industrial economies with a history of paying dividends.
Reserves policy
The purpose of the reserves is to ensure that The Orcome Trust can meet its operational commitments even in times of financial uncertainty. Specifically, reserves are needed to cover potential financial liabilities related to vacated premises, such as rates and other associated costs.
The charity owns two properties from which it derives rental income. This income is important for supporting its commitments. However, there is a risk that some properties may become vacant, leading to a loss of rental income and the need to cover rates ,insurance and management costs for the unoccupied premises.
The Orcome Trust has determined that it requires reserves totalling £28,500. This amount represents the total non-domestic rate fees required for one year of vacated premises and six months of management and insurance fees. Holding this level of reserves will allow the charity to meet these costs without jeopardizing other operations, ensuring financial stability during periods of vacancy.
The reserves will be monitored on an ongoing basis by the Board of Trustees. They will ensure that the reserves are maintained at an appropriate level, considering any changes in the charity's circumstances, such as fluctuations in rental income, changes in the number of properties owned, or significant changes in rate fees.
The reserves level will be formally reviewed annually as part of The Orcome Trust's financial planning and risk management processes. If necessary, the reserves target will be adjusted to reflect the changing needs of the charity and its external environment.
Reserves will only be used in the event of a significant financial risk or shortfall, such as prolonged vacancy of one or more properties resulting in rate liabilities. Any use of reserves must be approved by the Board of Trustees, and a plan will be established to replenish the reserves as soon as practicable.
The balance held as unrestricted funds at 31st March was £2,274,136 (2023: £2,139,173), of which £1,544,136 (2023: £1,409,173) are regarded as free reserves, after allowing for funds tied up in tangible fixed assets. The current level of reserves is therefore higher than is needed.
FUTURE PLANS
The Orcome Trust will continue to endeavour to maintain the same level of distribution without depleting the core investments.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The Orcome Trust was established in 1962 by a Declaration of Trust and is a registered charity, number SC014107.
The current trustees have been selected and approved by existing trustees, selected on their criteria of having relevant experience in different sectors which the Trust might wish to support, the ability to provide relevant advice on the running of the Trust and where possible experience of the locality.
The chair of the trustees is responsible for the induction of any new trustee. This involves providing a history of the Trust and its projects, administrative procedures and awareness of trustee's responsibilities.
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The Oiyome Ti'ust Repoi* of the Ti'ustees for the YeAI' Ellded 31 2024 STRLCTIUiE, GOVERNANCE AND MANAGEMENT Risk mfinAgemeDt The TteeS have a duty to identify and review the risks to which the Tr81 is exwsed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. The key risk is a substantial reduction in the value of the investment portfolio arising from poor inveslment performance due to the overall falls in worldwide slock inarkets. The Trustees I.eIlarlY review perf0mnCe with the Tnt'S advisei's with a Triew to restricting the risk to an acceptable level. The Trustees have assessed the major risks to which the Trust is exposed and are satisfied thai systems are in place to iti8ate those risks. Financial risks are mana8ed by (a) 8ivin8 preference to investsnents where the realisable value is cominensurate with projected inconie, (b) avoiding iu]due concentration iii asset cftte80ry ld exposure to Ioss 8reater than siuns inNested, axid (c) Inaintaiiiin8 liquidity for cutTent comii1ittintS and keepin8 future colnineThts within projected income on rolli118 five ye. basis. 2411012024 Approved by orderof the board of tsustees on............................................. and Sied on its behalf by: Trnstee Page 5 Document ID.. f5292e54-bbfb47fa-85f8-87578fa2fc7c
IndependLt Examiner's Report to the Trustees of The Orcome Trust I report on the accounts for the year ended 31 March 2024 set out on pa8es seN"en to thirteen. Respective responsibilities of trustees and examiner Tlie charilys tnlee$ are respoiisible for the prepation of the accounts lli aCcor]Ce witEi tEie tenns of tlie CIwAties tllid Tntee InN'estsiiait (Sco11}d) Aci 2005 ld tlie Charities Accounts (Sco11]d) ReatiO1 2006 (as ainended). Tlie dity'S trustees consider ihat the aiidii reqlili'an1I of ReatIOn 10(I)(a) to (c) of tlie Accowils Re8ulations does not apply. It is my responsibility to eIllIne the accounts as required under Section 44(1)(c) of the Act and to state whether particular Inatte haie come to my attention. Basis of ihe independent examiner's report My eXninatiOn was carried out in accordance with Re8ulalion I l of the Charities Accounts (Scot1]d) Re8UlatI 2LK)6. An examination incliides a reNiew of ihe accoiuitin8 records kept by the charity and a coinparison of the accowits presented witli tliose records. It also llicliths coiisideratioii of any iteins or disclosiu'es lli the accoimts. ]d seeki118 expltiOnS froni yoii as tsuslees concen]i118 }Y such 1]tters. The procedures ldertakl do not proNide all tlie eiidence that would be reqiiired in an al1t. ld cOnseqilItIY I do not express an aiidit OPllUOii the Nuew l'en by the accounts. Independent exaininer's slatemenl i cowiectioii witli iny ex1)I1tio1i. no matter has come to my attention . (l) which 8ives reaslable cause to belieie that. in any material respect. the requirements to keep accountin8 records irA accordance with Section 44(1)(a) of the 2005 Act and Re8ulation 4 of the 2(M16 Accolt$ Re8ulations: ]d to prepare accounts which accord with the accountin8 records and io comply with Re8ulation 8 of the 21))6 Accounts Re8ulations hal'e not been met: or (2) to which. in my opinion, attention should be drawn in order to enable a proper imdasianding of the accounts lo be reached. EQ AccoiuitAllts Lid 4749 The Square Kelso Roxburglishire ID5 7HW 2411012024 Page 6 Do(ument ID: f5292e54-bbfb47fa-85f8-87578fa2fc7c
The Orcome Trust
Statement of Financial Activities for the Year Ended 31 March 2024
| Notes INCOME AND ENDOWMENTS FROM Donations and legacies Investment income 2 Total EXPENDITURE ON Raising funds Charitable activities General Total Net gains/(losses) on investments NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
31.3.24 Unrestricted fund £ 42,750 11,857 54,607 5,710 53,381 59,091 139,448 134,964 2,139,172 2,274,136 |
31.3.23 Total funds £ 33,267 27,833 61,100 24,262 42,223 66,485 (131,013) (136,398) 2,275,570 2,139,172 |
|---|---|---|
The notes form part of these financial statements
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The Oiyome Ti'ust BAIAnce Sheet 31 Mai'cb 2024 31.3.24 Unrestiicted fund 31.3.23 Total fidS Notes FLITD ASSETS TaTh8ible assets ivestments 730.000 1,484.296 730,000 1,344.839 2,214,296 2,074,839 CLRREKf ASSETS Debtors Cash at bank 4,237 73.956 12,178 72.535 78,193 84,713 CREDITORS Amounts fallin8 due within one year (18,353) (20,380) NET CURRENT ASSETS 59,840 64.333 TOTAL ASSETS LESS CLIUiENr LIABILITIES 2,274,136 2,139,172 NET ASSETS 2.274.136 2.139.172 FUNDS Unrestrlcted fimds 2.274.136 2.139,172 TOTAL FUNDS 2.274.136 2.139,172 The fllNicial statements were approved by the Board of Trnstees and authorised for issue 2411Q12024"" and were signed on its behalf by: Trnstee The notes fomi part of these fllmnciai statements Page 8 Document ID.. f5292e54-bbfb47fa-85f8-87578fa2fc7c
The Orcome Trust
Notes to the Financial Statements for the Year Ended 31 March 2024
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charity, 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 Charities and Trustee Investment (Scotland) Act 2005. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, 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.
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Taxation
The charity is exempt from tax on its charitable activities.
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
| INVESTMENT INCOME | ||
|---|---|---|
| 31.3.24 | 31.3.23 | |
| £ | £ | |
| Rents received | 11,209 | 27,788 |
| Deposit account interest | 648 | 45 |
| 11,857 | 27,833 |
continued...
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The Orcome Trust
Notes to the Financial Statements - continued for the Year Ended 31 March 2024
3. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 March 2024 nor for the year ended 31 March 2023.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 March 2024 nor for the year ended 31 March 2023.
4. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
| 4. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES |
|
|---|---|
| INCOME AND ENDOWMENTS FROM Donations and legacies Investment income Total EXPENDITURE ON Raising funds Charitable activities General Total Net gains/(losses) on investments NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD 5. TANGIBLE FIXED ASSETS COST At 1 April 2023 and 31 March 2024 NET BOOK VALUE At 31 March 2024 At 31 March 2023 |
Unrestricted fund £ 33,267 27,833 61,100 24,262 42,223 66,485 (131,013) (136,398) 2,275,570 2,139,172 Freehold property £ 730,000 730,000 730,000 |
continued...
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The Orcome Trust Notes to the FinAnciAI SIAlemeDts - continued foi. the YeAI' Ellded 31 MAI'cb 2024 ASSET INVESTMENrs Listed 1nvestnltS At l Apiil 2023 ReN'aluatioi 1.344.839 139,457 At 31 March 2024 1.484.296 NET BOOK VALUE At 3 L Marcli 2024 1.484.296 At 31 March 2023 1.344.839 The ini'estsnent assets are predominantly invested in a UK doll)iciled fund which provides exposure to a divase ranse of listed iniestmerAtS 8lobally. Cost or valualion at 31 March 2024 is represented by: Listed investments 1.484.296 Valuation in 2024 InN'eslments are a fonn of basic fin]Cial inslnllnait and are initially recowsed at their transaction l'ali and siibse(Diently measled al their fair i'aliie as at the balaiice sheei date iLsin8 tlie closin8 qiJOted iiw*et price. The stataneiit of fin1claI actii"ities includes the iiet gall and losses arise oil re1.aluati] and disposals tIwoii8lioiit the year. Tlie inain fonii of fu1]Cial risk faced by the Tnt is that of Nolalility in eqillty inai'kets a iiii'estsiieiii n]arkets di to wider econoiiiic coiithiioiis. the attitude of ini,eSto to illN.estellt rise and dwiges in seiltilliit coiiceAIIi118 eqiiilies and witllin particidar sectors or siib seclofts. All 8alllS and losses are taken lo tlie statlI1t of Flliluicial Actiiities as tliey arise. Realised 8ain and losses on inN.estmIts are calcidated as tlie th'fference beth'e] sales procee(18 and tlie oplin8 caiTyi118 I'alue or their purc1Le i?lue if acqiiired subsequenl to the first day of the flliancial year. Ui]realised 8aAns and losses £u'e calculated as the differnice between the faAr value at the year end and their canyin8 N?lue. Realised and urnEd investsnent 8aAns and losses are combined it the Statemenl of Financial Activities. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YLIR 31.3.24 31.3.23 Other debto pi.epalla1ts 2.500 1,737 11.005 1,173 4237 12.178 Page 11 continued... Document ID: f5292e54-bbfb47fa-85f8-87578fa2fc7c
The Orcome Trust
Notes to the Financial Statements - continued for the Year Ended 31 March 2024
8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Taxation and social security Other creditors MOVEMENT IN FUNDS Unrestricted funds General fund TOTAL FUNDS Net movement in funds, included in the above are as Unrestricted funds General fund TOTAL FUNDS |
follows: Incoming resources £ 54,607 54,607 |
At 1.4.23 £ 2,139,172 2,139,172 Resources expended £ (59,091) (59,091) |
31.3.24 £ 193 18,160 18,353 Net movement in funds £ 134,964 134,964 Gains and losses £ 139,448 139,448 |
31.3.23 £ 1,904 18,476 20,380 At 31.3.24 £ 2,274,136 2,274,136 Movement in funds £ 134,964 134,964 |
|
|---|---|---|---|---|---|
9. MOVEMENT IN FUNDS
Comparatives for movement in funds
| At 1.4.22 £ Unrestricted funds General fund 2,275,570 TOTAL FUNDS 2,275,570 Comparative net movement in funds, included in the above are as follows: Incoming Resources resources expended £ £ Unrestricted funds General fund 61,100 (66,485) TOTAL FUNDS 61,100 (66,485) |
Net movement in funds £ (136,398) (136,398) Gains and losses £ (131,013) (131,013) |
At 31.3.23 £ 2,139,172 2,139,172 Movement in funds £ (136,398) (136,398) |
|
|---|---|---|---|
continued...
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The Orcome Trust
Notes to the Financial Statements - continued for the Year Ended 31 March 2024
9. MOVEMENT IN FUNDS - continued
A current year 12 months and prior year 12 months combined position is as follows:
| Unrestricted funds General fund TOTAL FUNDS |
At 1.4.22 £ 2,275,570 2,275,570 |
Net movement in funds £ (1,434) (1,434) |
At 31.3.24 £ 2,274,136 |
|---|---|---|---|
| 2,274,136 |
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Unrestricted funds General fund TOTAL FUNDS |
Incoming resources £ 115,707 115,707 |
Resources expended £ (125,576) (125,576) |
Gains and Movement losses in funds £ £ 8,435 (1,434) 8,435 (1,434) |
Gains and Movement losses in funds £ £ 8,435 (1,434) 8,435 (1,434) |
|---|---|---|---|---|
| (1,434) |
10. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 March 2024.
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The Orcome Trust
| Detailed Statement of Financial Activities | |||
|---|---|---|---|
| for the Year Ended 31 March 2024 | |||
| 31.3.24 | 31.3.23 | ||
| £ | £ | ||
| INCOME AND ENDOWMENTS | |||
| Donations and legacies | |||
| Dividends | 42,750 | 33,267 | |
| Investment income | |||
| Rents received | 11,209 | 27,788 | |
| Deposit account interest | 648 | 45 | |
| 11,857 | 27,833 | ||
| Total incoming resources | 54,607 | 61,100 | |
| EXPENDITURE | |||
| Raising donations and legacies | |||
| Investment management fees | - | 1,988 | |
| Direct property costs | 5,710 | 22,274 | |
| 5,710 | 24,262 | ||
| Charitable activities | |||
| Administration costs | 1,985 | 2,872 | |
| Grants Payable | 50,240 | 38,471 | |
| 52,225 | 41,343 | ||
| Support costs | |||
| Governance costs | |||
| Legal Fees | 206 | - | |
| Independent Examination Fees | 950 | 880 | |
| 1,156 | 880 | ||
| Total resources expended | 59,091 | 66,485 | |
| Net expenditure | (4,484) | (5,385) |
This page does not form part of the statutory financial statements
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