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2025-03-31-accounts

Charity registration number SC016969 (Scotland)

FOULA ELECTRICITY TRUST

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

FOULA ELECTRICITY TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

Charity registration

Principal address

Independent examiner

Thyme Tax & Accountancy Ltd 36 Angusfield Avenue Aberdeen Aberdeenshire United Kingdom AB15 6AQ

SC016969

FOULA ELECTRICITY TRUST

CONTENTS

Page
Trustees report 1 - 3
Independent examiner's report 4
Statement of financial activities 5
Balance sheet 6
Notes to the financial statements 7 - 15

FOULA ELECTRICITY TRUST

TRUSTEES REPORT

FOR THE YEAR ENDED 31 MARCH 2025

The Trustees present their annual report and financial statements for the year ended 31 March 2025.

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 governing document, 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).

Objectives and activities

Foula Electricity Trust exists to provide an electricity supply to the residents and businesses on the island of Foula, which is not connected to any existing electricity network. The charity provides electricity through its own renewable electricity generation system.

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake.

Achievements and performance

Main achievements during year:

FOULA ELECTRICITY TRUST TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Unfortunately, the start of 2025 was a difficult period for the Trust due to a cable fault on the underground HV network between T3 and T4. This was a 500 metre section of the original 1983 cable that developed an insulation fault such that it was no longer able to function. The cable sections before and after this section having been replaced in previous years due to similar faults. Sourcing an appropriate replacement cable proved very difficult due to the unique nature of the HV network in comparison to commonly used HV cable stock. The cable fault cut the connection between the wind turbines and the power centre therefore putting the wind turbines out of action durinB this period. A temporary battery/Benerator mini Brid was then established at T3 to provide powèr to those customers. and a small back up diesel generator was loaned to the sole customer at T2. The rest of the island was able to continue being fed from the Power centre, but without support from the wind turbines. This led to increased fuel consumption from the network as a whole during this period. In addition to this the new supply side back-up generator developed a mechanical fault that put it out of action in March 202S. This put Sl8nificant pressure back on the old generator at a time when wind had been lost and generator hours were now higher than normal. Operatin8 two independent grids either side of the faulted cable led to increased operator hours and additional maintenance. However. the hard work that went into setting up and operating this rèconfigured supply ensured that all consumers were still being provided with electricity during the extended time period required to source and then lav the new cable section underground. Fln•n¢lal revlew The Trusts reserves have stabilised in recent times and the cashflow pre55ures during the ongoing projects have been managed. This is de5Plte the added pressure of the cable fault that developed in early 2025. It is the policy of the Charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month's expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Charity's current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year. As at the balance sheet date the charitable company had total reserves of £551,777 Of this amount, £477.093 related to restricted reserves and these were therefore only available to be used for the purposes for which the income was originally received. The remaining £74,684 represents the unrestricted reserves of the charitable company. Of this amount. £53.264 was represented by,fixed assets Ibuildings, equipment etcl and accordingly this sum is not freely available for use by the charitable company. The unrestricted funds available at year end to spend are £21,420. Plans for future periods Work on the grid modernisation upgrade project will continue. Thi5 ambitious project will increase the electricity grid capacitv on Foula to accommodate additional load5 that will be required a5 a result of the transition to net zero. Strurture• governance and management The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity. d during the year and up to the date of signatuie of the financial statements were:

FOULA ELECTRICITY TRUST

TRUSTEES REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

The Trustees report was approved by the Board of Trustees.

17 December 2025

FOULA ELECTRICITY TRUST

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF FOULA ELECTRICITY TRUST

I report on the financial statements of the Charity for the year ended 31 March 2025, which are set out on pages 5 to 15.

Respective responsibilities of Trustees and examiner

The Charity’s Trustees 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 charity's 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.

Basis of independent examiner's statement

My examination is carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations 2006. 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 seeking 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.

Independent examiner's statement

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

I understand that this has been done in order for the financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

In connection with my examination, no other matter except that referred to in the previous paragraph has come to my attention:

have not been met or

Thyme Tax & Accountancy Ltd 36 Angusfield Avenue Aberdeen Aberdeenshire AB15 6AQ United Kingdom

Dated: 17 December 2025

FOULA ELECTRICITY TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2025

Unrestricted
Restricted
funds
funds
2025
2025
Notes
£
£
Income from:
Donations and legacies
3
-
314,986
Charitable activities
4
68,696
-
Total income
68,696
314,986
Expenditure on:
Charitable activities
5
66,214
25,627
Total expenditure
66,214
25,627
Net income
2,482
289,359
Transfers between funds
161,151
(161,151)
Net movement in funds
7
163,633
128,208
Reconciliation of funds:
Fund balances at 1 April 2024
(88,949)
348,885
Fund balances at 31 March 2025
74,684
477,093
Total
Unrestricted
Restricted
funds
funds
2025
2024
2024
£
£
£
314,986
-
58,484
68,696
68,613
-
383,682
68,613
58,484
91,841
50,882
17,933
91,841
50,882
17,933
291,841
17,731
40,551
-
(175,137)
175,137
291,841
(157,406)
215,688
259,936
68,457
133,197
551,777
(88,949)
348,885
Total
2024
£
58,484
68,613
127,097
68,815
68,815
58,282
-
58,282
201,654
259,936

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

FOULA ELECTRICITY TRUST

BALANCE SHEET

AS AT 31 MARCH 2025

Notes
Fixed assets
Tangible assets
11
Current assets
Debtors
12
Cash at bank and in hand
Creditors: amounts falling due within one year
14
Net current assets/(liabilities)
Total assets less current liabilities
Creditors: amounts falling due after more than
one year
15
Net assets
The funds of the Charity
Restricted income funds
16
Unrestricted funds
17
2025
£
57,098
54,207
111,305
(67,375)
2024
£
£
£
530,357
400,348
79,266
37,444
116,710
(220,759)
43,930
(104,049)
574,287
296,299
(22,510)
(36,363)
551,777
259,936
477,093
348,885
74,684
(88,949)
551,777
259,936

The financial statements were approved by the Trustees on 17 December 2025

FOULA ELECTRICITY TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

Charity information

Foula Electricity Trust is a unincorporated charity.

1.1 Basis of preparation

The financial statements have been prepared in accordance with the Charity's governing document, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 is a Public Benefit Entity as defined by FRS 102.

The Charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

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 or grantors 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.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Charity.

1.4 Income

Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the Charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

FOULA ELECTRICITY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6 Tangible fixed assets

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:

Plant and equipment

variable rates

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 the statement of financial activities.

1.7 Impairment of fixed assets

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).

1.8 Cash and cash equivalents

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.

1.9 Financial instruments

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.

FOULA ELECTRICITY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

(Continued)

Basic financial assets

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

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 payments 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.

1.10 Employee benefits

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.

2 Critical accounting estimates and judgements

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.

3 Income from donations and legacies

Restricted Restricted
funds funds
2025 2024
£ £
Grants 314,986 58,484

FOULA ELECTRICITY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

4 Income from charitable activities

Unrestricted Unrestricted
funds funds
2025 2024
£ £
Electricity sales 56,440 53,563
Feed in tariff 11,862 14,640
Charitable rental income - 30
Other income 394 380
68,696 68,613
Expenditure on charitable activities
2025 2024
£ £
Direct costs
Depreciation and impairment 26,641 18,747
Insurance 1,282 1,709
Telephone 388 397
Office costs 22 48
Sundry - 41
Scheme maintenance 31,525 9,783
Fuel 21,917 25,581
Carriage 1,357 1,290
Rent 100 100
83,232 57,696
Share of support and governance costs (see note 6)
Governance 8,609 11,119
91,841 68,815
Analysis by fund
Unrestricted funds 66,214 50,882
Restricted funds 25,627 17,933
91,841 68,815

5 Expenditure on charitable activities

FOULA ELECTRICITY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

6
Support costs allocated to activities
Governance costs
Governance costs comprise:
Indpendent examination
Book keeping
7
Net movement in funds
The net movement in funds is stated after charging/(crediting):
Fees payable for the independent examination of the charity's financial statements
Depreciation of owned tangible fixed assets
2025
£
8,609
2025
£
425
8,184
8,609
2025
£
-
26,641
2024
£
11,119
2024
£
425
10,694
11,119
2024
£
-
18,747

8 Trustees

received £17,323 for services to the trust (2024: £25,003)

9 Employees

The average monthly number of employees during the year was:

The average monthly number of employees during the year was:
2025 2024
Number Number
Total - -
There were no employees whose annual remuneration was more than £60,000.

10 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

FOULA ELECTRICITY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

11
Tangible fixed assets
Cost
At 1 April 2024
Additions
At 31 March 2025
Depreciation and impairment
At 1 April 2024
Depreciation charged in the year
At 31 March 2025
Carrying amount
At 31 March 2025
At 31 March 2024
12
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
13
Loans and overdrafts
Other loans
Payable within one year
Payable after one year
Plant and
equipment
£
777,298
156,650
933,948
376,950
26,641
403,591
530,357
400,348
2025
2024
£
£
25,598
20,095
10,698
42,999
20,802
16,172
57,098
79,266
2025
2024
£
£
29,436
36,363
6,926
-
22,510
36,363
Plant and
equipment
£
777,298
156,650
933,948
376,950
26,641
403,591
530,357
400,348
2025
2024
£
£
25,598
20,095
10,698
42,999
20,802
16,172
57,098
79,266
2025
2024
£
£
29,436
36,363
6,926
-
22,510
36,363
933,948
376,950
26,641
403,591
530,357
400,348
2024
£
20,095
42,999
16,172
79,266
2024
£
36,363
-
36,363

FOULA ELECTRICITY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

14
Creditors: amounts falling due within one year
Borrowings
Trade creditors
Accruals and deferred income
15
Creditors: amounts falling due after more than one year
Borrowings
2025
£
6,926
58,985
1,464
67,375
2025
£
22,510
2024
£
-
218,469
2,290
220,759
2024
£
36,363

FOULA ELECTRICITY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

16 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

Balance at
1 April 2023
£
Recomm Fund
44,499
Generator Fund
16,901
Storage Upgrade Fund
71,797
133,197
Movement in funds
Incoming
resources
Resources
expended
£
£
58,484
(5,116)
-
(3,972)
-
(8,845)
58,484
(17,933)
Transfers
Balance at
1 April 2024
£
£
104,650
116,609
16,830
29,759
53,657
202,517
175,137
348,885
Movement in funds
Incoming
resources
Resources
expended
Transfers
Balance at
31 March 2025
£
£
£
£
228,023
(5,116)
(14,548)
324,968
-
(5,656)
(2)
24,101
86,963
(14,855)
(146,600)
128,025
314,986
(25,627)
(161,150)
477,093
Movement in funds
Incoming
resources
Resources
expended
Transfers
Balance at
31 March 2025
£
£
£
£
228,023
(5,116)
(14,548)
324,968
-
(5,656)
(2)
24,101
86,963
(14,855)
(146,600)
128,025
314,986
(25,627)
(161,150)
477,093
477,093

FOULA ELECTRICITY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

17 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 April 2024 At 1 April 2024 Incoming Resources Transfers At 31 March
resources expended 2025
£ £ £ £ £
General funds (88,949) 68,696 (66,214) 161,151 74,684
Previous year: At 1 April 2023 Incoming Resources Transfers At 31 March
resources expended 2024
£ £ £ £ £
General funds 68,457 68,613 (50,882) (175,137) (88,949)
Analysis of net assets between funds
Unrestricted Restricted Total
funds funds
2025 2025 2025
£ £ £
At 31 March 2025:
Tangible assets 53,264 477,093 530,357
Current assets/(liabilities) 43,930 - 43,930
Long term liabilities (22,510) - (22,510)
74,684 477,093 551,777
Unrestricted Restricted Total
funds funds
2024 2024 2024
£ £ £
At 31 March 2024:
Tangible assets 10,591 389,757 400,348
Current assets/(liabilities) (99,540) (4,509) (104,049)
Long term liabilities - (36,363) (36,363)
(88,949) 348,885 259,936

18 Analysis of net assets between funds

19 Related party transactions

There were no disclosable related party transactions during the year (2024 - none).