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← Renfrew Common Good Fund

2021-12-31-accounts

RENFREWSHIRE COUNCIL COMMON GOOD FUNDS

PAISLEY SC019478 RENFREW SC019479 JOHNSTONE SC019480

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS

2020-21

Renfrewshire Council Common Good Funds 2020-21 Trustees’ Annual Report

Council ~~a~~

TABLE OF CONTENTS

TRUSTEES’ ANNUAL REPORT ................................................................................................................................... 1 STATEMENT OF TRUSTEES’ RESPONSIBILITIES IN RESPECT OF THE ANNUAL REPORT AND ACCOUNTS ............... 7 AUDITOR'S REPORT TO THE TRUSTEES OF PAISLEY, JOHNSTONE AND RENFREW COMMON GOOD FUNDS ........ 8 STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST MARCH 2021 .............................................. 12 BALANCE SHEET AS AT 31ST MARCH 2021 .......................................................................................................... 14 CASH FLOW STATEMENT FOR YEAR ENDED 31ST MARCH 2021 ........................................................................... 15 NOTES TO THE FINANCIAL STATEMENTS .............................................................................................................. 16 1: ACCOUNTING POLICIES ..................................................................................................................................... 16 2: INCOME AND ENDOWMENTS ........................................................................................................................... 16 3: EXPENDITURE .................................................................................................................................................... 17 4: TANGIBLE FIXED ASSETS .................................................................................................................................... 17 5: FIXED ASSET INVESTMENTS.............................................................................................................................. 17 6: RESERVES COVER… ............................................................................................................................................ 23 7: CASH FLOW STATEMENT ................................................................................................................................... 23 8: TRUSTEES’ REMUNERATION AND EXPENSES .................................................................................................... 24 9: RELATED PARTIES .............................................................................................................................................. 24 10: COMMITMENTS .............................................................................................................................................. 24 11: STAFF COSTS AND EMOLUMENTS .................................................................................................................. 24 12: AUDIT COSTS… ................................................................................................................................................ 24 13: DEBTORS ......................................................................................................................................................... 25 14: CREDITORS… .................................................................................................................................................... 25 15: SHORT TERM DEPOSITS ................................................................................................................................... 25 16: EVENTS AFTER THE BALANCE SHEET DATE… ................................................................................................... 25

Renfrewshire Council Common Good Funds 2020-21 Trustees’ Annual Report

Council ~~a~~

Trustees’ Annual Report

Introduction

Renfrewshire Council acts as sole trustee for the Common Good Funds listed below which have charitable status and are registered with the Office of the Scottish Charity Regulator (OSCR):

SC019478 Paisley Common Good Fund SC019479 Renfrew Common Good Fund SC019480 Johnstone Common Good Fund

The principal address of the Common Good Funds is:

Renfrewshire Council administers the Common Good Funds and separately accounts for them. Renfrewshire Council was established by the Local Government (Scotland) Act 1994 and came into being on 1 April 1996. The Council provides a wide range of public services such as education, social services, environmental services and housing and economic regeneration.

They do not form part of the Council’s single entity balance sheet, although under s222 of the Local Government (Scotland) Act 1973, the property of the Common Good “vest[s] in” the relevant local authority. However they are included within the group accounts of the Council. A copy of the group accounts can be obtained from the address above.

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Auditors:
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Investment Managers: PO
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Investment Advisors: pO
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Renfrewshire Council Common Good Funds 2020-21 Trustees’ Annual Report ~~a~~

Trustees

The Common Good is not a Trust, and is not governed by trust law. Therefore in terms of the “Trustees” of the Common Good, the guidance provided by OSCR is that those who have “general control and management” of the charity are the charity trustees. Decisions regarding the general control and management of the Common Good Funds are made by the Finance, Resources and Customer Services Policy Board (FRCSPB) of the Council, which has delegated authority from the Council in this regard; but ultimately control rests with the full Council of elected members. We have therefore interpreted the above guidance as meaning all elected members are charity trustees.

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The following individuals were the Trustees of the Common Good Funds in their capacity as elected members
of Renfrewshire Council during the 2020-21 financial year:
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Day to day management of the Common Good Funds is delegated to the Director of Finance and Resources of
Renfrewshire Council. All the trustees for the accounts are normally elected or re-elected at local government
elections. By-elections are held to elect new members in the event of existing members vacating their position.
New members automatically become trustees.
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Renfrewshire Council Common Good Funds 2020-21 Trustees’ Annual Report Council ~~a~~

Structure, Governance and Management

The Common Good is a fund of money and assets which the Council has a statutory obligation (under Section 15(4) of the Local Government etc (Scotland) Act 1994) to administer “having regard to the interests of the inhabitants of the area to which the Common Good formerly related” (i.e. the former burghs of Paisley, Renfrew and Johnstone). Although the Common Good is administered separately from mainstream local authority funding, it is owned outright by the Council (s222 of the Local Government (Scotland) Act 1973) and does not have an identity separate from the Council, nor a constitutional form distinct from the Council .

The charity test, set out in Section 7 of the Charities and Trustee Investment (Scotland) Act 2005 provides that “a body meets the charity test if –

The Common Good Funds are not “bodies” separate from the Council, and the Council’s purposes consist of much more than the charitable purposes listed in the Act.

History

The Common Good comprises land granted to a Burgh by the Crown, further grants of land and buildings, mainly in the late 19[th ] and early 20[th ] century by local industrialists and other landowners for the common good of the inhabitants of the Burgh and the rental income and sale proceeds from such land. The bulk of the Paisley Common Good was granted to the Burgh of Paisley by the King Charles II Charter dated 27 and 28 July 1666, and has been administered by the Burgh and its successors since that date. The bulk of the Renfrew Common Good was granted to the Royal Burgh of Renfrew by the Queen Anne Charter dated 7 August 1703 and again has been administered by the Burgh and its successors since that date.

Governance and Management

The Council is required to make arrangements for the proper administration of its financial affairs and to secure that one of its officers has the responsibility for the administration of those affairs. The Director of Finance and Resources has been designated as that officer in Renfrewshire Council. He manages the affairs of the Council to secure the economic, efficient and effective use of resources and safeguard its assets and those of any charitable trust it controls. Given the Common Good is owned by the Council, these specific provisions are supplemented by the general provisions relating to the administration of local authority monies, i.e. the duty to obtain best value.

The Director of Finance and Resources has responsibility for ensuring an effective system of internal financial control is maintained and operated. This system of internal financial control can only provide reasonable and not absolute assurance that assets are safeguarded, transactions are recorded and properly authorised, and that material errors or irregularities are either prevented or would be detected within a timely period. The system of internal financial control is based on a framework of regular management information, financial regulations, administrative procedures and a system of delegation and accountability. The Director of Finance and Resources is responsible for keeping proper accounting records which are up to date and which ensure that the financial statements comply with the Charities Accounts (Scotland) Regulations 2006.

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Renfrewshire Council Common Good Funds 2020-21 Trustees’ Annual Report Council ~~a~~

Decisions regarding the operation, assets, processes or policies of the Common Good Funds are delegated by the Council to the Finance, Resources and Customer Services Policy Board (FRCSPB). Income to the Common Good Funds is solely from investment returns (both financial investments and property rental income) and bank interest – no donations to the Funds are solicited. The only other source of income which arises periodically is from the sale of fixed assets.

The investment performance of the Common Good Funds is monitored regularly by Council officers, and is reported bi-annually to the Investment Review Board, which is comprised of 5 cross party elected members. The minutes of the Investment Review Board are submitted to the Finance, Resources and Customer Services Policy Board, whose meetings are held in public. In turn, the minutes of this Board are submitted to the full Council for ratification. Therefore each elected member is informed of both the performance of the funds, and any decision regarding the operation of the Funds which would be made by the Finance, Resources and Customer Services Policy Board.

Regular training is offered to the members of the Investment Review Board through information sessions at each meeting.

Risk

The Trustees have overall responsibility for the Common Good Funds’ systems of internal control that are designed by senior management to ensure effective and efficient operations, including financial reporting and compliance with laws and regulations. The Trustees acknowledge that such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives and can only provide reasonable and not absolute assurance against material misstatement or loss.

The main risk for the Common Good relates to the investment income available for disbursement through grants. As mentioned above, investment performance is monitored quarterly by officers of the Council and they receive specialist advice in this regard from Hymans Robertson LLP, appointed investment advisors. It is acknowledged that this particular risk has been heightened because of the ongoing coronavirus pandemic, however the potential impact on income levels is closely monitored in discussion with the investment manager and adviser and tactical changes in investment holdings will be actioned as required. A Statement of Investment Principles has been agreed by the Investment Review Board and this is regularly reviewed to ensure the benchmark against which performance is monitored remains relevant and appropriate. The Statement was updated to an Investment Policy Statement at the meeting of the Investment Review Board on 9 June 2021, incorporating strengthened restrictions with regards climate change risks.

Objectives and Activities

As mentioned above, there is no governing document for the Common Good. The assets were gifted for the common good of the inhabitants of the burgh. The most concise statement of the administration of the Common Good is contained in a judgement by Lord Kyllachy:

“The Common Good is corporate property and falls as such to be administered by the Council – and applied by them for the benefit of the community in such a manner as, and using such reasonable judgement as, they think proper”.

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Renfrewshire Council Common Good Funds 2020-21 Trustees’ Annual Report Council ~~a~~

Therefore in terms of the aims of the Common Good, they cannot be narrowed down from that detailed above, i.e. that the funds are used for the benefit the inhabitants of the burgh to which they are related.

Grant-making

There are two elements to the grants awarded from Common Good Funds: recurring grants (i.e. those awarded for a period of some years) or large grant awards that are agreed by the FRCPB. In addition the FRCPB also agrees the budget available to Local Partnerships for subsequent award to community groups. Local Partnerships were set up in an effort to involve communities more directly in the decision-making of the Council, and they are comprised of the elected members of the relevant wards, along with representatives from local community groups e.g. Community Councils, Elderly Forums, Youth Groups etc. Each Local Partnership is allocated an annual budget, and they consider at relevant meetings (held in public) the grant requests they have received. Only eligible grants may be considered – further information on the eligibility criteria may be obtained from the Council.

Achievements and Performance

In 2020-21 grants totalling £185,655 (£169,736 in 2019-20) were awarded by Local Partnerships to a wide variety of community organisations. Other grant expenditure totalling £119,435 (£154,540 in 2019-20) was made throughout the year. Despite the restrictions in place due to the COVID19 pandemic, the operation of the charities continued with minimal impact. Funds continued to be disbursed and investment performance was monitored through regular reporting and remote meetings as required.

Investment performance

The Common Good Funds have adopted a total return policy for investment income and have agreed income targets which the Investment Manager exceeded in year. During the year the total return on investments was 23.9% (-1.8% in 2019-20). The average return on cash balances held within Renfrewshire Council’s Loans Fund was 0.37% (0.86% in 2019-20).

Overall, the Common Good Funds reported a combined net increase in funds of £4.158million (£1.094million decrease in 2019-20) which will increase the previous fund balance brought forward. The total funds held by Paisley Common Good increased by £1.226 million and the funds held by Renfrew Common Good increased by £2.932 million. The movement in funds this year mainly reflects the increased investments valuation due to stock market movements in light of the post-vaccine equity market rally in the last half of the financial year.

Financial Review

The Common Good Funds have no explicit reserves policy, but as a general principle the “capital” of the funds is held effectively as a permanent endowment, with only the annual income available for disbursement in the year.

No individual Common Good Fund is in deficit.

The main funding sources for the Common Good Funds this year are dividend and investment income (64.5%) [67.8% in 2019-20] and property rental income (35.5%) [32.2% in 2019-20].

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Renfrewshire Council Common Good Funds 2020-21 Trustees’ Annual Report Council ~~a~~

The Investment Review Board has agreed a Statement of Investment Principles (SoIP) which regulates the relationship between the Council and the Investment Manager. The SoIP details benchmark asset class holdings and also the restrictions which the Council has agreed i.e. no direct holdings in tobacco stocks or companies involved in the manufacture or supply of military equipment; and a minimum holding of 15% of the total funds to be held in fixed interest stocks.

Future Plans

On 5 September 2018 the Finance, Resources & Customer Service Policy Board of Renfrewshire Council agreed that a formal application be submitted to the Office of the Scottish Charity Regulator (OSCR) requesting the deregistration of all three Common Good Funds.

The Council has contacted OSCR to start the process of de-registration, however due to the unique nature of Common Good Funds this is not a simple matter of a normal de-registration and OSCR are currently reviewing the situation and will provide an update of the timescales and procedures in due course. There has been no update on the timescale in the last financial year.

Regardless of registration status, Common Good Funds will continue to make grants available to local organisations through the Local Partnership grant making process, and will also continue to fund recurring commitments such as Christmas Lights displays.

The Council will also continue to review the funding provided by the Common Good Funds to ensure it remains appropriate and in line with the objectives of the Funds and to the benefit of the inhabitants of the relevant Burghs.

The Community Empowerment (Scotland) Act 2015 places new obligations on Councils with regards recording and the use of Common Good assets. As required by the Act the Council has published a register of all Common Good properties and will assess any responses received. The Act also requires local authorities to publish any proposals and consult with community bodies before disposing of or changing the use of Common Good assets.

The Trustees wish to thank the Renfrewshire Council officers involved in producing the Annual Report and Financial Statements

Signed:

18 November 2021

Director of Finance and Resources Renfrewshire Council

On behalf of the Trustees:

18 November 2021

Convener – Finance, Resources and Customer Services Policy Board Renfrewshire Council

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Renfrewshire Council Common Good Funds 2020-21 Trustees’ Annual Report Council ~~a~~

Statement of Trustees’ Responsibilities in respect of the Annual Report and Accounts

a) Statement of responsibilities in respect of the annual report and accounts

The Trustees are responsible for preparing the annual report and financial statements for each financial year, in accordance with the accounting policies set out in note 1 to the accounts and the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the 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 published on 16 July 2014 . The financial statements give a true and fair view of the incoming resources and application of the resources of the charity during the year and of the charity’s state of affairs at the end of the financial year. In preparing those financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records which disclose, with reasonable accuracy at any time, the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities and Trustees Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. They are also responsible for safeguarding the assets of the charity and group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

b) Statement of disclosure of information to auditors

The trustees who held office at the date of approval of this annual report and accounts confirm that, so far as they are each aware, there is no relevant audit information of which the auditors are unaware; and each trustee has taken all the steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the auditors are aware of this information.

Signed:

Convener – Finance, Resources and Customer Services Policy Board Renfrewshire Council

18 November 2021

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Independent Auditor’s Report to the Trustees of Renfrewshire Council Common Good Funds and the Accounts Commission

Report on the audit of the financial statements

Opinion on financial statements

I certify that I have audited the financial statements in the statement of accounts of Renfrewshire Council Common Good Funds for the year ended 31 March 2021 under Part VII of the Local Government (Scotland) Act 1973 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005. The financial statements comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and the United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In my opinion the accompanying financial statements:

Basis for opinion

I conducted my audit in accordance with applicable law and International Standards on Auditing (UK) (ISAs (UK)), as required by the Code of Audit Practice approved by the Accounts Commission for Scotland. My responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of my report. I am independent of the charities in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK including the Financial Reporting Council’s Ethical Standard, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Conclusions relating to going concern basis of accounting

I have concluded that the use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work I have performed, I have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charities’ ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from when the financial statements are authorised for issue.

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Responsibilities of the trustees for the financial statements

As explained more fully in the Statement of Trustees’ Responsibilities, the trustees are responsible for the preparation of financial statements that give a true and fair view in accordance with the financial reporting framework, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charities’ ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless deemed inappropriate.

Auditor’s responsibilities for the audit of the financial statements

My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. I design procedures in line with my responsibilities outlined above to detect material misstatements in respect of irregularities, including fraud. Procedures include:

The extent to which my procedures are capable of detecting irregularities, including fraud, is affected by the inherent difficulty in detecting irregularities, the effectiveness of the charities’ controls, and the nature, timing and extent of the audit procedures performed.

Irregularities that result from fraud are inherently more difficult to detect than irregularities that result from error as fraud may involve collusion, intentional omissions, misrepresentations, or the override of internal control. The capability of the audit to detect fraud and other irregularities depends on factors such as the skilfulness of the perpetrator, the frequency and extent of manipulation, the degree of collusion involved, the relative size of individual amounts manipulated, and the seniority of those individuals involved.

A further description of the auditor’s responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of my auditor’s report.

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Reporting on other requirements

Statutory other information

The trustees are responsible for the statutory other information in the statement of accounts. The statutory other information comprises the Trustees’ Annual Report.

My responsibility is to read all the statutory other information and, in doing so, consider whether

the statutory other information is materially inconsistent with the financial statements or my knowledge obtained in the audit or otherwise appears to be materially misstated. If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this statutory other information, I am required to report that fact. I have nothing to report in this regard.

My opinion on the financial statements does not cover the statutory other information and I do not express any form of assurance conclusion thereon except to the extent explicitly stated in the following opinion prescribed by the Accounts Commission.

Opinion prescribed by the Accounts Commission

In my opinion, based on the work undertaken in the course of the audit, the information given in the Trustees' Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements and that report has been prepared in accordance with the Charities SORP (FRS 102).

Matters on which I am required to report by exception

I am required by The Charity Accounts (Scotland) Regulations 2006 to report to you if, in my opinion:

I have nothing to report in respect of these matters.

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Use of my report

This report is made solely to the parties to whom it is addressed in accordance with Part VII of the Local Government (Scotland) Act 1973 and for no other purpose. In accordance with paragraph 120 of the Code of Audit Practice, I do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties.

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18 November 2021
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is eligible to act as an auditor in terms of Part VII of the Local Government (Scotland) Act 1973.

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Renfrewshire Council Common Good Funds 2020-21 Financial Statements

Statement of Financial Activities for the Year Ended 31[st ] March 2021

This Account summarises the resources that have been generated and consumed in providing services and managing the Common Good Funds during the year. It includes all day to day expenses and related income on an accruals basis, as well as transactions measuring the value of fixed assets actually consumed. This Account also includes the Statement of Total Recognised Gains and Losses which brings together all of the gains and losses of the Funds for the year and shows the aggregate movement in their net worth. All Common Good Funds have unrestricted funds only; there were no restricted or endowment funds during 2020-21 or in 2019-20.

Year to 31st March 2021 Year to 31st March 2020
Paisley Johnstone Renfrew Total Paisley Johnstone Renfrew Total
SC019478 SC019480 SC019479 SC019478 SC019480 SC019479
Notes £m £m £m £m £m £m £m £m
Income and Endowments from:
Income
Grants, Interest & Dividend		 2(a) 0.128 0.000 0.443 0.571 0.149 0.000 0.514 0.663
Rental and Other Income 2(b) 0.049 0.000 0.266 0.315 0.049 0.000 0.266 0.315
Total Income and Endowments 0.177 0.000 0.709 0.886 0.198 0.000 0.780 0.978
Expenditure on:
Raising Funds
Fundraising Trading 0.000 0.000 0.014 0.014 0.000 0.000 0.031 0.031
Investment Management Costs 0.019 0.000 0.062 0.081 0.017 0.000 0.058 0.075
Total Raising Funds 0.019 0.000 0.076 0.095 0.017 0.000 0.089 0.106
Charitable Activities
Charitable Activities 3(a) 0.121 0.000 0.184 0.305 0.121 0.000 0.203 0.324
Governance Costs 3(b) 0.015 0.000 0.049 0.064 0.015 0.000 0.049 0.064
Depreciation and Impairment 0.071 0.000 0.433 0.504 0.071 0.000 0.432 0.503
Total Charitable Activities 0.207 0.000 0.666 0.873 0.207 0.000 0.684 0.891
Total Expenditure 0.226 0.000 0.742 0.968 0.224 0.000 0.773 0.997
Net Income / (Expenditure) and
net movement in funds before (0.049) 0.000 (0.033) (0.082) (0.026) 0.000 0.007 (0.019)
gains and losses on investments
Gains/(losses) on Investment
Assets		 5 0.816 0.000 2.759 3.575 (0.221) 0.000 (0.749) (0.970)
Net Income/(Expenditure) 0.767 0.000 2.726 3.493 (0.247) 0.000 (0.742) (0.989)

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Renfrewshire Council Common Good Funds 2020-21 Financial Statements

Statement of Financial Activities for the Year Ended 31st March 2020 (Continued)

Year to 31st March 2021 Year to 31st March 2020
Paisley Johnstone Renfrew Total Paisley Johnstone Renfrew Total
SC019478 SC019480 SC019479 SC019478 SC019480 SC019479
Notes £m £m £m £m £m £m £m £m
Transfer between Funds 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Total after funds transfer 0.767 0.000 2.726 3.493 (0.247) 0.000 (0.742) (0.989)
Other Gains or Losses
Fixed Assets
Gains/(Losses) on Revaluation of		 4 0.459 0.000 0.206 0.665 0.000 0.000 (0.105) (0.105)
Total Other Recognised Gains or
Losses		 0.459 0.000 0.206 0.665 0.000 0.000 (0.105) (0.105)
Net Movement in Funds 1.226 0.000 2.932 4.158 (0.247) 0.000 (0.847) (1.094)
Total Funds Brought Forward 5.247 0.052 30.323 35.622 5.494 0.052 31.170 36.716
Total Funds Carried Forward 6.473 0.052 33.255 39.780 5.247 0.052 30.323 35.622

The notes on pages 16 to 25 form part of these financial statements.

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Renfrewshire Council Common Good Funds 2020-21 Financial Statements

Balance Sheet as at 31[st ] March 2021

The Balance Sheet summarises in its top half all the assets that the Common Good Funds own and the liabilities that they owe to others. The bottom half sets out how the net assets of the Funds are allocated between usable resources and statutory reserves needed to comply with accounting rules.

At 31stMarch 2021 At 31stMarch 2021 At 31stMarch 2020 At 31stMarch 2020
Paisley Johnstone Renfrew Total Paisley Johnstone Renfrew Total
SC019478 SC019480 SC019479 SC019478 SC019480 SC019479
Notes £m £m £m £m £m £m £m £m
Fixed Assets
Tangible Fixed
Assets		 4 1.090 0.000 12.283 13.373 0.702 0.000 12.510 13.212
Heritage Assets 4 0.063 0.047 0.109 0.219 0.063 0.047 0.109 0.219
Investments 5 4.757 0.000 16.079 20.836 3.943 0.000 13.325 17.268
5.910 0.047 28.471 34.428 4.708 0.047 25.944 30.699
Current Assets
Debtors 13 0.000 0.000 0.040 0.040 0.000 0.000 0.008 0.008
Short term
deposits		 15 0.568 0.005 4.852 5.425 0.573 0.005 4.447 5.025
0.568 0.005 4.892 5.465 0.573 0.005 4.455 5.033
Less: Current Liabilities
Creditors:
Amounts Falling
Due Within One		 14 (0.005) 0.000 (0.108) (0.113) (0.034) 0.000 (0.076) (0.110)
Year
(0.005) 0.000 (0.108) (0.113) (0.034) 0.000 (0.076) (0.110)
Net Current Assets 0.563 0.005 4.784 5.352 0.539 0.005 4.379 4.923
Net Assets 6.473 0.052 33.255 39.780 5.247 0.052 30.323 35.622
Funds of the Charities Funds of the Charities
Unrestricted Funds
Income Funds 3.622 0.036 20.338 23.996 3.572 0.036 20.027 23.635
Revaluation
reserve :
1.415 0.000 4.731 6.146 0.698 0.000 2.316 3.014
Investments
Revaluation
reserve : 1.436 0.016 8.186 9.638 0.977 0.016 7.980 8.973
Other Fixed Assets
6.473 0.052 33.255 39.780 5.247 0.052 30.323 35.622

The unaudited accounts were issued on 24 June 2021 and the audited accounts were authorised for issue on 18 November 2021.

Signed

Signed

18 November 2021

18 November 2021

Director of Finance and Resources Renfrewshire Council

Convener – Finance, Resources and Customer Services Policy Board. Renfrewshire Council.

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Renfrewshire Council Common Good Funds 2020-21 Financial Statements

Cash Flow Statement for Year Ended 31[st ] March 2021

This statement summarises the inflows and outflows of cash arising from the transactions with third parties on both day to day revenue transactions and expenditure on capital activities. For the purposes of this statement, cash is defined as cash in hand and deposits repayable on demand.

Year ended 31st March 2021 Year ended 31st March 2021 Year ended 31st March 2021 Year ended 31st March 2020 Year ended 31st March 2020 Year ended 31st March 2020
Paisley Johnstone Renfrew Total Paisley Johnstone Renfrew Total
Notes £m £m £m £m £m £m £m £m
Net Cash Inflow from
Operating Activities 7 (0.007) 0.000 0.400 0.393 0.039 0.000 0.486 0.525
Capital Expenditure
and Financial
Investment
Cash paid for fixed
asset investment (0.641) 0.000 (2.168) (2.809) (0.651) 0.000 (2.169) (2.820)
Receipts from sales of
fixed asset: investments 0.606 0.000 2.073 2.679 0.709 0.000 2.355 3.064
Receipts from sales of
fixed asset: property 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Payments to acquire
tangible fixed assets 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Net cash flow from
capital expenditure
and financial
investments (0.035) 0.000 (0.095) (0.130) 0.058 0.000 0.186 0.244
(Increase)/decrease in
cash held for
investments 0.037 0.100 0.137 (0.058) (0.188) (0.246)
Increase/(decrease) in
cash held in the year (0.005) 0.000 0.405 0.400 0.039 0.000 0.486 0.525
Reconciliation of net
cash flow to movement
in net funds
(Decrease)/increase in
cash in year (0.005) 0.000 0.405 0.400 0.039 0.000 0.486 0.525
net funds at 1 April 0.573 0.005 4.447 5.025 0.534 0.005 3.961 4.500
Net funds at 31 March 0.568 0.005 4.852 5.425 0.573 0.005 4.447 5.025

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Renfrewshire Council Common Good Funds 2020-21 Financial Statements

Notes to the Financial Statements

1: Accounting Policies

Introduction

The Financial Statements for the year ended 31 March 2021 have been compiled in accordance with 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 (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) published on 16 July 2014 . They are designed to give a true and fair view of the financial performance and position of the Common Good Funds and comparative figures for the previous financial year are provided. There are no significant departures from accounting standards other than that outlined specifically below.

The accounting concepts of “materiality” and “going concern” have been considered in the application of accounting policies. In this regard the materiality concept means that information is included where the information is of such significance as to justify its inclusion. The accounts have been prepared on a going concern basis. The going concern concept assumes that the Charities will not significantly curtail the scale of their operations.

The accounts have been prepared under the historic cost convention, other than changes resulting from the revaluation of certain categories of assets. The following accounting policies used in its preparation have been reviewed following the introduction of Financial Reporting Standard 18 “Accounting Policies” (FRS18).

Income and Endowments

Recognition of income and endowments

These are included in the Statement of Financial Activities (SOFA) when:

Grants and Donations

Grants and donations are only included in the SOFA when the charity has unconditional entitlement to the resources.

Gifts in Kind

Gifts in kind are not reflected in the SORP, but are referred to when necessary in the Trustees Annual Report.

Investment Income

This is included in the accounts when receivable.

Investment Gains and Losses

This includes any gain or loss on the sale of investments and any gain or loss resulting from revaluing investments to market value at the end of the year

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Renfrewshire Council Common Good Funds 2020-21 Financial Statements

Expenditure

Liability Recognition

Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources.

Charitable Activities

Decisions regarding the way the Common Good Funds’ income is spent are taken by the Finance, Resources and Customer Services Policy Board, whose membership comprises of 15 of the trustees of the Common Good Funds. Voluntary groups are encouraged to apply for funding from the available funds allocated to Renfrewshire Council Local Partnerships.

Governance Costs

Governance costs include the:

Grants Payable without Performance Conditions

These are recognised in the accounts when the grant has been paid.

Assets

Valuation

Land and buildings have been valued on the basis of market value in relation to existing use, assessed either on a comparative basis or on a depreciated replacement cost basis. The valuations have been compiled by the Council Valuer who is Member of the Royal Institute of Chartered Surveyors (MRICS) qualified. Assets under construction are shown at historic cost. Land and buildings are revalued every five years, with increases in valuation matched by credits to the Revaluation Reserve.

A de-minimis of £9,000 is applied for capitalisation of expenditure.

The civic regalia and equipment (heritage assets) have been valued on a present value insurance basis.

Investments are valued at market value.

Depreciation

Depreciation is charged on a straight -line basis on all assets other than land, heritage assets and assets under construction. The Council Valuer determines the useful life of property assets. Depreciation is based on expected life of costs capitalised.

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Renfrewshire Council Common Good Funds 2020-21 Financial Statements

Impairment

The value of each category of asset is reviewed at the end of each financial year for evidence of reductions in value. Where impairment is identified as part of this review or as a result of a revaluation exercise, the loss is charged to the SOFA.

Departures from the Charities SORP

Operational land and buildings have been valued on a depreciated replacement costs basis, not a historic basis as per the Charities SORP. The main reason for this is the obligation under the Local Government Code of Practice on local authority accounting to apply a depreciated replacement cost valuation basis, and it is under the Local Government Code that the Common Good Accounts have been audited in previous years.

Events after the Balance Sheet date

Events after the Balance Sheet date are those events, both favourable and unfavourable, that occur between the end of the reporting period and the date when the Statements are authorised for issue. There are two types of events:

Events taking place after the date of authorisation for issue are not reflected in the Statements. Note 16 provides further information.

2: Income and Endowments

a) Investments

2020-21 2020-21 2019-20 2019-20
Paisley Johnstone Renfrew Total Paisley Johnstone Renfrew Total
£m £m £m £m £m £m £m £m
Grant income 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Dividend income 0.126 0.000 0.426 0.552 0.145 0.000 0.491 0.636
Interest income 0.002 0.000 0.017 0.019 0.004 0.000 0.023 0.027
Total grant &
investment 0.128 0.000 0.443 0.571 0.149 0.000 0.514 0.663
income

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Renfrewshire Council Common Good Funds 2020-21 Financial Statements

b) Rental and Other Income

2020-21 2020-21 2019-20 2019-20
Paisley Johnstone Renfrew Total Paisley Johnstone Renfrew Total
£m £m £m £m £m £m £m £m
Rental income 0.049 0.000 0.266 0.315 0.049 0.000 0.266 0.315
from properties
Other Income 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Total rental and
other income 0.049 0.000 0.266 0.315 0.049 0.000 0.266 0.315

3: Expenditure

a) Charitable Activities

2020-21 2020-21 2019-20 2019-20
Paisley Johnstone Renfrew Total Paisley Johnstone Renfrew Total
£m £m £m £m £m £m £m £m
Voluntary
organisation 0.050 0.000 0.136 0.186 0.024 0.000 0.146 0.170
grants
Civic related 0.071 0.000 0.048 0.119 0.097 0.000 0.057 0.154
grants
Total charitable
activities grants 0.121 0.000 0.184 0.305 0.121 0.000 0.203 0.324

b) Governance Costs

2020-21 2020-21 2019-20 2019-20
Paisley Johnstone Renfrew Total Paisley Johnstone Renfrew Total
£m £m £m £m £m £m £m £m
Accountancy
and
Administrative		 0.011 0.000 0.034 0.045 0.011 0.000 0.034 0.045
Services
Property
Services		 0.004 0.000 0.015 0.019 0.004 0.000 0.015 0.019
Total
Governance 0.015 0.000 0.049 0.064 0.015 0.000 0.049 0.064
Costs

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Renfrewshire Council Common Good Funds 2020-21 Financial Statements

4: Tangible Fixed Assets

a) Paisley Common Good Fund

I
Operational
Land and
Buildings		 Non-
Operational
Assets –
Surplus Assets		 Total Tangible
Fixed Assets		 Heritage Assets
1
1
1
1
1
1
1
1
i
1
Gross Book Value £m £m £m £m
1
1
1
1
At 1stApril 2020 0.711 0.275 0.986 0.063
1
1
1
Additions 0.000 0.000 0.000 0.000
1
i]
!
1
Disposals 0.000 0.000 0.000 0.000
1
1
!
Revaluations 0.105 0.000 0.105 0.000
i]1
~~a~~ ~~a~~ ~~a~~ ~~a~~ ~~a~~
At 31stMarch 2021 0.816
~~a~~		 ~~a~~ 0.275
~~a~~		 1.091
~~a~~		 0.063
i]~~H~~
~~a~~
~~a~~ ~~a~~ ~~a~~ ~~a~~ ~~a~~
~~1~~
~~1~~
Depreciation ~~1~~
At 1stApril 2020 0.284 0.000 0.284 0.000
1
1
1
Depreciation for Year 0.071 0.000 0.071 0.000
1
1
1
Depreciation writeback on Revaluation (0.354) 0.000 (0.354) 0.000
H
At 31stMarch 2021 0.001
~~TETTTTEEEEEEEEEEEEEEEEEEEEEEEEEEEEETTESEF=*F=eeDDD9—__		 ~~ ~~TETTTTEEEEEEEEEEEEEEEEEEEEEEEEEEEEETTESEF=*F=eeDDD9—__ ~~ 0.000
~~TETTTTEEEEEEEEEEEEEEEEEEEEEEEEEEEEETTESEF=*F=eeDDD9—__
[]
1
1
~~ee~~ ~~ee~~ ~~ee~~ ~~ee~~ ~~ee~~
1
Net Book Value at 31stMarch 2021 0.815 0.275 1.090 0.063
1
1
1
~~SSS~~ ~~SSS~~ ~~SSS~~ 1
~~SSS~~
~~lS~~
~~S—————~~
1
1
1
i]
Net Book Value at 31stMarch 2020 0.427 0.275 0.702 0.063
i]
i]

a

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Renfrewshire Council Common Good Funds 2020-21 Financial Statements

b) Renfrew Common Good Fund

Non- Non- Total 1
i]
1
Operational operational
assets –		 Operational
Assets –		 Tangible
Fixed		 i]
1
i]
1
i]
Land and Plant and Investment Surplus Assets 1
i]
1		 Heritage
Buildings Equipment Properties Assets 1
1		 Assets
I
Gross Book Value £m £m £m £m £m 1
1
1		 £m
i]
At 1stApril 2020 9.568 3.284 0.539 0.015 13.406 1
1		 0.109
1
Additions 0.000 0.000 0.000 0.000 0.000 1
1
1		 0.000
I
Disposals 0.000 0.000 0.000 0.000 0.000 1
1		 0.000
1
Transfers 0.000 0.000 0.000 0.000 0.000 1
1		 0.000
!
i
Revaluations
At 31stMarch 2021		 0.074
0.000
0.001
0.000
0.075
0.000
9.642
3.284
0.540
0.015
13.481
0.109
i]
I
~~ee~~
~~Se~~
1
i
i]
i]
i]
i]
Depreciation i]
i]
i]
At 1stApril 2020 0.511 0.364 0.021 0.000 0.896 i]
i]
i]		 0.000
i]
Depreciation for year 0.193 0.234 0.006 0.000 0.433 1
1
1		 0.000
1
Impairment 0.000 0.000 0.000 0.000 0.000 i]
i]
i]		 0.000
Depreciation writeback on 1
1
revaluations (0.118) 0.000 (0.013) 0.000 (0.131) 1
1
1		 0.000
Impairment losses written out on 1
1
revaluation 0.000
0.000
0.000
0.000
0.000
0.000
!
~~ee~~
At 31stMarch 2021 0.586
0.598
~~>>>EE>>e>y[(ye> yee>>>>>>>xyc>——[—>—>E>xX~~		 0.014
0.000
~~yee>>>>>>>xyc>——[—>_—>E>xX EEE~~		 1.198
0.000
1
1
~~EEE~~
i]
1
Net Book Value at 31stMarch 2021 9.056
2.686
0.526
0.015
12.283
0.109
1
~~ee——e—VXnXnac~~
~~err~~
1
1
1
~~po~~
~~—>__		 j__ ~~
i]~~1~~
Net Book Value at 31stMarch 2020 9.056
2.921
0.518
0.015
12.510
0.109
~~1~~
~~a~~
~~ee~~

c) Johnstone Common Good Fund

c) Johnstone Common Good Fund
Heritage Assets
Gross Book Value £m
At 1stApril 2020 0.047
Additions 0.000
Disposals 0.000
Revaluations 0.000
At 31stMarch 2021 0.047
Depreciation
At 1stApril 2020 0.000
Depreciation for year 0.000
At 31stMarch 2021 0.000
Net Book Value at 31stMarch 2021 0.047
Net Book Value at 31stMarch 2020 0.047

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Renfrewshire Council Common Good Funds 2020-21 Financial Statements

d) Heritage Assets

Heritage Assets include items of civic regalia and equipment formerly used by the Provost of the Council on civic occasions. The assets are now held in Renfrewshire museums.

5: Fixed Asset Investments

Investments are held specifically to provide the funds from which donations and civic activities can be funded from.

a) Analysis of market values

a) Analysis of market values
2020-21 2019-20
Paisley Renfrew Total Paisley Renfrew Total
Market Value £m £m £m £m £m £m
At 1stApril 2020 3.943 13.326 17.269 4.163 14.073 18.236
Additions 0.642 2.168 2.810 0.651 2.169 2.820
Disposals (0.606) (2.073) (2.679) (0.709) (2.355) (3.064)
Net gain/(loss) on revaluation 0.815 2.759 3.574 (0.220) (0.749) (0.969)
Increase/(decrease) in cash in bank
awaiting investment		 (0.037) (0.101) (0.138) 0.058 0.188 0.246
At 31stMarch 2021 4.757 16.079 20.836 3.943 13.326 17.269

b) Asset Allocation Analysis

2020-21 2019-20
Paisley Renfrew Total Paisley Renfrew Total
£m £m £m £m £m £m
Bonds:
UK Government Bonds 0.247 0.833 1.080 0.244 0.824 1.068
Other UK Bonds 0.342 1.098 1.440 0.282 0.900 1.182
Overseas Bonds 0.134 0.510 0.644 0.119 0.455 0.574
Equities:
UK Equities 1.633 5.505 7.138 1.456 4.905 6.361
Overseas Equities 2.261 7.628 9.889 1.646 5.576 7.222
Non-Region Specific 0.000 0.000 0.000 0.036 0.121 0.157
Property Investments 0.061 0.206 0.267 0.043 0.145 0.188
Cash 0.075 0.287 0.362 0.113 0.388 0.501
Accrued Interest 0.004 0.012 0.016 0.004 0.012 0.016
Total Investment Assets 4.757 16.079 20.836 3.943 13.326 17.269

All investments during 2020-21 and in 2019-20 were held in unrestricted funds.

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Renfrewshire Council Common Good Funds 2020-21 Financial Statements

6: Reserves Cover

2020-21 2020-21 2019-20 2019-20
Paisley Johnstone Renfrew Total Paisley Johnstone Renfrew Total
Free Reserves £m £m £m £m £m £m £m £m
Unrestricted Funds 3.622 0.036 20.340 23.998 3.572 0.036 20.027 23.635
Allocation Adjustment 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Unrestricted Funds
from SOFA		 (0.049) 0.000 (0.032) (0.081) (0.026) 0.000 0.007 (0.019)
Total Unrestricted
Funds		 3 573 0.036 20.308 23.917 3.546 0.036 20.034 23.616
Less Funds tied up in
fixed assets		 (4.757) 0.000 (16.079) (20.836) (3.943) 0.000 (13.325) (17.268)
Total Free Reserves (1.184) 0.036 4.229 3.081 (0.397) 0.036 6.709 6.348
Annual Running Costs
exclude impairment		 0.226 0.000 0.756 0.982 0.224 0.000 0.773 0.997
Number of months
held in reserve 0 0 67 0 0 104

Funds tied up in fixed assets are represented by investments held by the Common Good Funds.

7: Cash Flow Statement

a Reconciliation of net income/expenditure to net cash inflow/ (outflow) from operating activities

operating activities
Year to 31stMarch 2021 March 2021 Year to 31stMarch 2020 March 2020
Paisley Johnstone Renfrew Paisley Johnstone Renfrew
£m £m £m £m £m £m
Net Incoming / (Expenditure) and
net movement in funds before gains
and losses on investments (0.049) 0.000 (0.033) (0.026) 0.000 0.007
Transfer of revaluation reserve
realised on investment movement 0.000 0.000 0.000 0.000 0.000 0.000
Depreciation and impairment 0.071 0.000 0.433 0.071 0.000 0.430
Decrease/(increase) in debtors 0.000 0.000 (0.032) 0.000 0.000 0.018
Increase/(decrease) in creditors (0.029) 0.000 0.032 (0.006) 0.000 0.031
Net cash (inflow)/outflow from
operating activities		 (0.007) 0.000 0.400 0.039 0.000 0.486

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Renfrewshire Council Common Good Funds 2020-21 Financial Statements

b Analysis of changes in net funds

movement At 31 movement At 31
At 1 April At 1 April in net March At 1 April in net March
2020 funds 2021 2019 funds 2020
£m £m £m £m £m £m
Short term deposits
Paisley 0.573 (0.005) 0.568 0.534 0.039 0.573
Johnstone 0.005 0.000 0.005 0.005 0.000 0.005
Renfrew 4.447 0.405 4.852 3.961 0.486 4.447
5.025 0.400 5.425 4.500 0.525 5.025

8: Trustees’ remuneration and expenses

Neither the Trustees of the Common Good Funds nor any associated person connected with them have received any remuneration for their services. Further, no directly incurred expenses were reimbursed to the Trustees during 2020-21 (nil 2019-20).

9: Related Parties

During the year, the Common Good Fund balances were invested by Renfrewshire Council, who manage the administration of the Funds on behalf of the Trustees. The costs of this are disclosed in note 3(b), Governance Costs. The Council also acts as the banker for the Common Good Funds and all transactions, incoming and outgoing, are made via the Council’s accounts. This creates a debtor as detailed in the respective Funds’ balance sheets. There are no outstanding balances due to or from Renfrewshire Council other than those that appear in the balance sheet.

10: Commitments

As at 31 March 2021, no Common Good Fund had outstanding commitments on capital contracts. There were no outstanding commitments for operating lease rentals.

11: Staff Costs and Emoluments

No members of staff were employed directly via the Common Good Funds during 2020-21 (2019-20 nil). All costs were incurred by Renfrewshire Council and recharged as detailed in note 3(b) Governance Costs. There are therefore no employees with emoluments above £60,000 (2019-20 nil).

12: Audit Costs

Costs of £4,660 (£4,550 for 2019-20) were incurred in relation to the audit of the 2020-21 financial statements.

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Renfrewshire Council Common Good Funds 2020-21 Financial Statements

13: Debtors

13: Debtors
Year to 31st stMarch 2021
Paisley Johnstone Renfrew Total
£m £m £m £m
Accrued
Income 0.000 0.000 0.040 0.040
Grant 0.000 0.000 0.000 0.000
Total Debtors 0.000 0.000 0.040 0.040
Year to 31stMarch 2020 Year to 31stMarch 2020
Paisley Paisley
Johnstone		 Renfrew Total
£m £m £m £m
0.000 0.000 0.008 0.008
0.000 0.000 0.000 0.000
0.000 0.000 0.008 0.008

14: Creditors

14: Creditors 14: Creditors
Year to 31st March 2021 Year to 31st March 2021 Year to 31st March 2020
Paisley Johnstone Renfrew Total Paisley Paisley
Johnstone		 Renfrew Total
£m £m £m £m £m £m £m £m
Trade
Creditors 0.005 0.000 0.104 0.109 0.034 0.000 0.072 0.106
Rents in
Advance 0.000 0.000 0.004 0.004 0.000 0.000 0.004 0.004
Total
Creditors 0.005 0.000 0.108 0.113 0.034 0.000 0.076 0.110

15: Short Term Deposits

Short term deposits are accounts held with Renfrewshire Council who process receipts, payments and accounting entries on behalf of the Common Good Funds.

16: Events after the Balance Sheet date

Events taking place after the authorised issue date per the balance sheet are not reflected in the financial statements or notes. Where events taking place before this date provided information about conditions existing at 31 March 2021, the figures in the financial statements and notes have been adjusted in all material respects to reflect the impact of this information. There are no non adjusting events.

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