Charlty rggbtratlon number SC021154 (scotlandl Company re9lstr•tion numbgr SC186967 {SGotlandl SKYE AND LOCHALSH MENTAL HEALTH ASSOCIATION (A COMPANY LIMITED BY GUARANTEE) ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 Ag Accountancy Limited Chartered Accounlanl$ Ekn House Cradlehall Business Park Invemess IV2 5GH
SKYE AND LOCHALSH MENTAL HEALTH ASSOCIATION LEGAL AND ADMINISTRATIVE INFORMATION Trust& s E C Bouwmeester Ms C FOrsh Mr L Macdonald MS S Macdonald Dr H Mcarde Ms H Mdoughlln Dr S Potts Dr G Terry M$ M J Gillies J MacDon81d (Appointed 10 October 2025} Secretary M8 S Ma¢Kenzie Charlty numb•r {Scoll•nd) SC021154 Company numbgr SC185967 Re9lstered office Am Fasgadh bodpark Dunvggan Road Portiee Isle Of Skye Scdand IV519HQ Ind•p•ndent •x•mlngr Hollie Mackay CA lThJependenl Examin&r A9 Accountancy Limited Cra(Jlehall BUS1r Park United Kingdom IV2 5GH
SKYE AND LOCHALSH MENTAL HEALTH ASSOCIATION CONTENTS Page Chaimian's 8tatem•nl Truste•s' rewt dependent examinefs raport Statement of finan¢ial actwities Balance sheet 10 Notes to the finan¢ial statements 11-25
SKYE AND LOCHALSH MENTAL HEALTH ASSOCIATION CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 31 MARCH 2026 The ASsocialit.5 profile has increased thanks in part to community fundraising ovonts including our 30 ye¥ celebrations, Skye Events Half Marathon, our pop up cafe and active use of social media in promoting the Fumilure Project resulting in approximately £18.000 in donab'ons in this finanaal year. We now have 5 regular young adu members, a group that we have be able lo reath out to wth the help of a grantfrom the Highland Care$ fund. It has bgen a busy year with att8ndance$ up 11% on last year induding 20 new se users., this is a year on year increase which we anticipate will continue. We have been able to continue weekend opening thanks lo a grant from the Mental Health and lIbeing Fund. Members regulady voice their appreciation that Am Fasgadh is opgn evory day and we know that weekends are a partilarlY urtical time. This has also been a busy year wlh actNrties for members as detailed in their rewrt. We are most graletrjl to our staff who give their lime gerrousty lo allow ovemight trips and other adventures which the members grealy enjoy and appreciate. The completion of the kilthen upgrade has l)eon a gfeat bo¢)st lo thring arKI has allowed us lo run a monthly po up café open to the public bwth real benefit to members feel a sense of pride and ownership. A substantial award from the Highla1 Counryl Regeneration Frd has allowed us to employ a project worker will primarily focus on developing our seNce in South Skye & Lochalsh, a much needed development we have been aiming for over Ihe last years. In addition, HCRF is also supporting our Furniture Project with a grant lo build a workshop to allow upcyding of d¢)nated rtems. something we want members to have the opportunty to be fully involved wrth. We have said goodbye lo project workers and welcomed 3 new staff in recent months and are delighted that we have been able to recwit people wlh valuable skills and experience to comment our other strong team member5,' as a Board, we feel optimistic about the Association's fijture despite the huge financial challenges for health 8nd social servic•s generally. We are commlited to ensuring our staff feel va5ued and have access to training and profe98ional development. not easy when rnoney 15 tight but ossential for the fLrture of our organisalion. Attracting and retaining ffijnding is • perennial challenge and we are grateful to NHS Highland for their Continuing financial support which meets over 60% of our core cost$ wrthout which we cOd not operate. Likewse (Njr 8eTvice is invaluable in supporting pèople wrth severe and gnduring mental Illness, helping them lo remain well, I8 in their own homes and feel part oftheir community. Dr S Potts C04halrpgrson Date:.......
SKYE AND LOCHALSH MENTAL HEALTH ASSOCIATION TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MARCH 2026 The trustees present their annual report arKI financial statements for the year ended 31 March 2026. Obje1¥e$ and acthihles The object of the company in the y8ar under revlew was to support adults in Skye and Lothalsh who are affected by problems resulting from mental illness, Social isolation and related challenges through accessible and perso c•ntered support sgrvices. Achievèments and perf0mnCe Signcan1 acbvrfies and achi8vem8nts againsl obJectNes Mental ljealth services SLMHA supported 188 members during the year. Am F8sgadh, the Association'$ drop4n ¢8ntre in Portree. ntinugd to provide a safe and welcoming environment 365 days a year. with aver8ge daily attendan of 19 members on weekdays and 10 members at weekends. Members accessed social and emotional $Jpport. meals provision. actNilies, internet ac¢es5, laundry facilities and practical support with everyday challenges. The seNice continued to provide imme(liate and trusted support to members experiencing anxiety, isolation and 1$1$ situations. the 6,121 attendances Were record8d dropin seryice Nearty 5,800 meals were provided, induding over 800 delivered meals Members supported attend over 112 medical appointments Staff assisted 77 benefits-relaled issues and over 1.456 day-trdaY support interventions . At least 9 hospilal admissions were prevented through ongoing support and early interyenlion During the South Stye and Lochal$h Service The South Skye and Lochalsh S¢Nlce continued to operala from the Lighthouse in Kyle. Dwing the year th¢ Association signfficantty expanded aceess to the ser4ice through the addition of a 17-seater minibus donated by Highland Cioss. Tha minlbus enabled regular transport for SoLrth Skye member$ to attend Am Fa8gadh eath k, improvirKJ social inclusion and participation in activities. Attendance and engagement within the South Skye and Lochalsh service increased during th& year. Fumiluts project The fumilure project continued to provide affordablo fvmitufe and household goods to individual and famlli88 across Skye and Lochal8h whilst dIveng significant amounts of waste landfill. Over 800 items wer• redistributed to more than 520 households during the year. The projed also cononued to provide volunteerlng opportun'8S for members, helping lo buld confidence, skills and communty involvement.
SKYE AND LOCHALSH MENTAL HEALTH ASSOCIATION TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026 Flnanclal revl•w The majority of the Association's income dunng the year contlnued to come from NHS Hlghland through th8 SeNice Level Agreement together with additional outreach funding. Additional support was received from grant funders and community 8UPPOrters induding The Robertson Trust. Highland Third Sertor Interface, NFU Scotland, Rabbie's Tours, Portree Ct>op and Highland Cross. The trustees continue to monitor expenditure carefully in responso to incrgasing opgrational costs, particularly ftjd, heating and food costs. Despite these pressures the Association remained wlhin budget during the year under R8seThes policy Thg compony aims to relain 30% of its lolal annual expenditure a$ unrestriclad undesignaled reserves which would be around £47,250. The trustees consider this necessary in order to provide financial Stabilty ond allow the organisalion lime to respond lo any fvture reductions or interruptions in funding. The unreslricted undeSial8d r8s8rve$ al the 31 Marth 2026 was £80.155 (2025 £53.4861 and theTgfore the chanty are meeting their rosarv8 pc4icy. The trustoe8' have also set aside £10,000 for Planned Maintenance and Improvements, this decision rewnised that items such as laptops, phones. washing machines, boilers etc have a limited lifespan. Reserves are reviewed regularfy by the Board as part of ongoing finarrial monitoring procedures. Princip81 funding sounes The majority of our inwne in the year under review wa$ from NHS Highland, through a service delivery contracl for the re service and paents for outreach support. This was supplemented by grants from the Robertson Trust who aw8rded u¥ o three year grant of £20.000 per year. Investmenl policy As expected. low interest rates meant that income from Investment was very small in the year under review. This 8ilualion appears Ilkety to continue and fvture budgets are being prepared on this assumption. The Memorandum and Artides of Associatic*n place no restrictions upon the investment powers of the trustees. All funds not likety to be required in the next month are placed in 8 30 day deposit account at the COTnpany's usual bankers.
SKYE AND LOCHALSH MENTAL HEALTH ASSOCIATION TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026 Plans for future perii>d# The trustees and staff continue to roview the fLrture development needs of the organisation. priorities Continuing development South Expanding opportunrties trips. activitie8 suppOng involvement the Scottish Developing thgital èngagement . sering sustainable lontrtemi funding services The trustees remain committed to ensuring the long-term sustsinability and rtssilience of the organisalion in respon$9 to growing demand for mental health support services within the community. Future incbJde'. Servi¢e participation FeslNal work Skye and Mental and and Lochalsh community Health promollonal for In Structure. govamaneè and mana9om•nl Th8 Association is a règistered Scottish charity and a company limited by guarantee. It is govemed by a Board of Directors whose members are both the director$ of the Company and trustees ofthe charity. The truslees, who ale also the dir8Ctors for the purpose of company law, and served during the year and LV to the date of signature of th8 financbal Statements were: Ms E C Bouwme9$ter M5 C Forsyth Mr L Macdgnald Ms S Ma¢donald Dr H Mcardla MS H Mcloughlin Dr S Potts Dr G Terry MS M J Gillies J MacDonald (Appointed 10 October 2025) Recmitment and appntrnent oltrustees Board members can be appointed in one of Iwo ways. Firstly, they can b8 apF4)inted by the members of the company in general meetin9', all members are entitled to on8 votè. Secondly, they can be invited by Ihe a¥11ng Board to serve in an interwn capauty until their appointment is approved by the membershlp at the nexl gener meeting. AJI members of the Board must also be ordinary members of the Assoaation. Each year the Board reviews ils membership and identifies any gaps that may exist, tsking account of Directors, skills, knowledge and expertise as well as representstion of stakeholders and of geographi1 areas. New invitslions to join the Assoation and the Board are then made based on this review. Potential Board members are welcomè to approaGh the Associatson and appropriate applicants will be invited tts join. Risk management The trustees recognise their duly to Identify and review the rlsks lo which the chwity 1$ exposed and to ensure that appropriate controls are In place to Fxovide reasonable assurance against fraud and error.
SKYE AND LOCHALSH MENTAL HEALTH ASSOCIATION TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) ICONTINUED) FOR THE YEAR ENDED 31 MARCH 2026 Organisgtionalstwctu The dal0daY operation and delivery of services at Am Fasgadh is deEegated to the manager, Sandra Mackenzie, thin the context of policies and procedures ratified by Ihe trustees. The trustees are responsible for Approving operalional polici8s and proc8dures Approving and reviewng the organisation's aims and objectives Setting resgrves policy Appr¢)ving annual budgets Setting pay and conditions fc staff Reviawing organisalional performance througth regular reports from the manager Induclion and lrninNw of tmst88s The Association produces a Dirertors, handbook vA)ich is issued to all trustees. AS well as providing guidance on the rde of Director, it 5ummari58$ key information on the organisation. irKluding activrties. structure and finances. otherm8tters Use of volunteers In accordance w¢th the Serwce Delivery Contract, the deVery of core seTviees is not reliant on volunteers. The Association aims lo create an environment in whith members are invofved in the daily running of the cenlre and also provides placements for individuals on employment schemes amd communlty payback orders. Any ath.vlty that Vuld be considered restricted work and require PVG scheme membership will only be carried out by paid members of staff. The furniture project is reliant on volunt08 and in thè ye revlew these wer8 all drawn from thè membors of the Assouation. The trustees promots this as a way tsf deVelong members, skills and confidence and in ordgr to break down stigma by raising the public profile of the Association. In the year under review the project used an av8rage of 8 hours a week of voluntary work. Rdationsh with relatedparties No transactions wrth related parties arose during Ihe year.
SKYE AND LOCHALSH MENTAL HEALTH ASSOCIATION TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026 Statem•nt of Trustee8' and Dlre¢toYs' Responslbllltles The truslees. who are also the directors of Skye And Lochalsh Mental Health Association for the purpose of company law, are responsie for PTeparing the Trustees, Report and the financbal slalements in accordance wth applic8ble law and United Kingdom Accounting Slandards (United lQngdom Gonerally Accepted Accounting Practice). Company Law requires the trustees to prepare financial stslements for 8aGh financial year which give a true and fair view of the Slate of affairs of the charity and of the Incoming rèsources and application of resources. induding Ihe income and expenditure, of thé charitable Company lor that y8ar. In preparing these financial ststements, the trustees are required to.. - select suitable accounting policAes and then apply them conwstently. - observe thg methods and principles in the Charities SORP. make judgements and estimates that are reasonable and prudent. state whether applicablo UK Accounting Standards have been followed. yubject lo any material departures disclosed and explained in the financial statements., and prepare the finanaal slalementB on the going concem basis unless it is inappropriate to presume that the charity 11 continue in Opefalion. The trustees are responsible for keeping adequate accounting records that disclose wth reasonable accuracy at any lime Ihg financial position of the charity and enable thém to ensure that the finanaal statements comply wth the Chanties and Trustee Investment {Scotlandl Act 2005, the* Charities Accounts Iscollandl Regulations 2006 las amended) and the Companies Act 2006. They are also responsible for safeguardirKJ the assets of the charity and hence for taking reasonable steps for the prev&nlion and dètection of fraud and other irregularities. The trustees, report was appr¢)ved by the Board of Thjstees. Dr S Potts TNstso
SKYE AND LOCHALSH MENTAL HEALTH ASSOCIATION INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF SKYE AND LOCHALSH MENTAL HEALTH ASSOCIATION I report on the financial statements of the charity for the year ended 31 March 2026, whlch are sel out on pages 8 to 25. R•8pectlve r86ponslbllltles of trustO0$ and frxamlnor The charity trustees {who are also the diffjclors of Skye And L¢xhalsh Mental Health Assoeiation for thè purposes of company lawl are responsible for the preparation of the financial statem8nl$ in accordance wlh the terms of the Charities and Trust8e Inv8slmenl (Swlland} Act 2005 and the Charities AcCots IScotFandl Regulations 2006.Th8 charrty trustees ¢SIder that th8 audit requirement of Regulation 10{1llaF{c) of Ihe Charities Accounts {Scotland} Re9atIonS 2006 does not apply. It is my responsibility to examln8 Ihe ftnaneial statements as requlred under section 44{11{c) of the Charities and Trustee Investment (Scolland) A¢t 2005 and to stale whether p8cUlar matters have come to my attontion. Ba$ls of ind•pènd•nt examlnefs slatsmgnt My examination 15 Carried out in aOrdance wth Regulation 11 of the Chariliès Accounts (Scotland) Regulations 2006. An examination in¢lud8s a review of the accounting records kept by the charity and a comparison of the financial statements presenled with those records. It a180 includes consideralion of Y unusual items or di5dosures in the finan81 Statements, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not PTwde all the evidenGe that would be required in an audit and consequenYy I do not oxpress an audit opinion on the view given by the financial statements. Independent examlnerfs statement In the course of my examination, no matter has come to my attenOn 1. whi¢h gives me re8sonabl8 cause to believe that in any material respect the raquirnm8nls: to keep accounting records in atrdance with Section 4411llal of the Chatities and Trustee Investment (Scotland) Act 2005 and Regulation 4 of the Charilies AountS {Scotland} Regulations 2006, and to prepar8 financial statements which accord vthh the &countlng rets)rds and compty whh Regulation 8 of the Charities Accounts Iscotlandl Regulations 20( have not been met, or 2. to which. in my opini¢Jn. attention should be drawn in order to enable a proper undorstsnding of the finala1 statements lo be Teached. Hollie Mackay CA A9 AUntanCY Limited Elm House Cradlehall Business Park Invemess IV2 5GH United Klngdom Dale..
SKYE AND LOCHALSH MENTAL HEALTH ASSOCIATION STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2026 Cumnt fln4nclal year Unrestrlctod Unrgstrlct•d funds lunds Gonoral Designated 2026 2026 Rostrlcted funds Total Total 2026 2026 2025 Notes Income from: Donab'ons and legaL?eS Charitable actr41t$ other trading a¢b'vities Invèstments 80.927 183,829 782 63.760 124,687 196,554 782 78,689 199,291 12.725 250 Total Income 245,544 12,725 63,760 322,029 276,210 Expenditure on: Charitable aclniilies Other expenditure 208.862 13 1.751 73,908 284,521 13 275,531 12 Total exponditure 208,875 1,751 73,908 284,534 275,531 Net In¢omellexpondlturo1 36,669 10.974 (10.148) 37.495 679 Tran$fers fvnds 110.0001 10.000 Net movement In funds 26.669 20.974 {10,1481 37.495 679 Reconclllatlon of funds: Fund balances at 1 April 2025 53,486 47,579 10.985 112.050 111,371 Fund balances at 31 March 2026 80,155 68,553 837 149,545 112,050 The statement of ft)an¢Oal activities in¢ludes all gains and losses recognised in the year. Ail income and expenditure dgrlve from continuing xtiwties.
SKYE AND LOCHALSH MENTAL HEALTH ASSOCIATION STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOMEAND EXPENDITUREACCOUNT FOR THEYEAR ENDED 31 MARCH 2026 Prlor Ilnanclal y•ar Unrestrlct•d Unrestrict•d funds funds general D8slgnat•d 2025 2025 R•strlct•d funds Totsl 2026 2025 Income from: Donations and legaoes Charitable activities Investments 40,369 180,967 250 38,300 76,869 199,291 250 18,324 Total Incom• 221,586 18,324 36.300 276.210 ExpeThd1re on: Charitable actNilies 239,615 2,115 33.801 275,531 Totsl •xp•ndltur¢ 239,615 2,115 33,801 275.531 Net IncoTnel(expenditure) and moyemont In funds 118,029) 16.209 2.499 679 Reconclliation of funds: Fund balances al 1 A&Mil 2024 71,515 31,370 8,486 111,371 Fund balances at 31 March 2028 53,486 47,579 10,985 112,050
SKYE AND LOCHALSH MENTAL HEALTH ASSOCIATION BALANCE SHEET AS AT 31 MARCH 2026 2026 202S Notes Fixod assets Tangible assets 14 53,599 63.532 Currnnt assets Stocks Debtors Cash at bank and in hand 16 16 1,300 5,882 98,858 1.6¢)0 10,280 44,804 1C6,040 Crodltors: amounts tslllng du• withln one yoar 17 (10,0941 (8,166} Nat ¢urrent assets 95,946 48.518 Total assetsloss ¢urront liabilltl•s 149,545 112,050 The lund• of the charlty Reslricled income funds Unresthcted funds- general Unre$tn"eted funds- Designated 837 80,155 68,553 10.985 53.486 47,579 149.545 112.050 The company is entiled lo the exemption from the auL*I qLreMent contalned in seGtion 477 of Ihe CompaniesAct 2¢X)6. for the yaar ended 31 March 2026. The drrectors 8cknovledge their re$ponsibiltties for eomplying wrth the requirements of the Comparrfes Art 2006 with respect to accounting reGords and the preparation of financial stalemenls. The members have not required th$ company to obtain an audit of its financial ststements for the year in question in accordCe with Secti 476. These financial statements have been prepared in accordanGe th Ihe provisions applicable to companoes subjert .to srnall companie8 regime. statements wer8 approve<l by the trustees on .. Mr L Macdonald Trustse Dr S Potts Trustee 10-
SKYE AND LOCHALSH MENTAL HEALTH ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 Ac¢ountlng policies ChaTIty Inforniallon Skye And Lixhalsh Manlal Health Association is a prfvate company limited by guarantee ineLJrFM)raled in Scollancl. The registered office FS Am Fasgadh. Vvoodpark. Dunvegan Road, Portree, 181e Of Skye, IV51 gHQ, Scotland. 1.1 Basis of preparation The financial statsmgnts have been prepared in accordance th Ihe Charities and Trustee Investmerrt Iscotlandl Act 2005, the Charities Acwunts (Scotlandl Regulations 2006 las amended), FRS 102 'The Finaneial Reporting Standard appli¢ablo in the UK and Republie of Ireland fFRS 102.) 8nd the Charities SORP 'Accounting and Reporting by Charities.. Statement of Re¢ommended Pr8eti¢e applic)ble lo ¢hereS preparing thèir accounts in accordance with the Financial Repothg Stsndard applirAble in the UK and Republic of Ireland IFRS 102}" (effective 1 January 2019)- The charty is a Publlc Benefit Entity as defined by FRS 102. The charity has taken advantag? of the provisions in the SORP charities nol to prepare a Statement of Cash Fl¢)ws. The financTal statements are prepared in sterling, which is the fiJt)nal currency of the charity. Monetary amounts in these financial statements are rounded lo the nearest £. The financial stslements have been prepared und8r the historical cost convention unless olheM$e stated in the ralevant aceounting policy notes.The principal a¢Unting policies adopted are set out below. 1.2 Golng concem At the time of approwng the financi818tatements. the truslegs have a reasonable expectation that the charity has adequate resource5 to ¢Xsnlinue in operational e$tenCe for the foreseeable future. Thus the trustees continue lo adopt the going concem basis of accounting in proparing the financia statements. 1.3 Charftsblo lunds Unrestricted funds are available for use al the dlsrXet of the trustees in fUrtr)8ran of their Charitable obje¢lives. Designated fvnds comprbse fiJnds which have been Sèt asidè at the dls¢retlon of the tru81ees for specrflc purposes. Thg purposes and uses of the designated funds are set OLrt in notes to the financial statements. Restricted fvnds are subject to speafic conditions by donors or grantors as lo how they moy be used. The purposes and uses of the restrKted funds are set out In the notes to the fanCial statements. 1A Income Income is recognised wffien the charity is legally entitled lo it after any perfonnance condibons have been met. the amounts can be measured reliably, and rt is probable that Income will be received. Cash donations are recognised on re¢eipt. Other donations are recognised once the ehanty has been nolifred of the donation, unless perf0mlan condrtions require def8rral of the amount. Income lax recoverable in relation lo donab'ons received under Gfft Aid ¢X deeds of covenant is recogni5ed at the time of the donation. Donaled assets a recognised 8t their fair value. Legacies are reCognod on rK8ipt or otherwise if thg chaiity has been notified of an impending distsibutKJn. the amount is knovffl, receipt 15 expected. If the amount Is not known, the legacy is treated as a nlingent as8et. 11
SKYE AND LOCHALSH MENTAL HEALTH ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026 Accountlng pollcie8 (Contlnu•d) Income from govemmenl and olher grants are recognised wh8n the charity has an entiuement to the fimd$ arKI any conditions linked to the grants have been met. lthere perf0m}an COrltionS are attached to the grant and are yot to be met, Ihe incc4ne is recognlsed as 8 liabilty and included on the balance sheol a$ deferred InMe to be released. Interest on funds held on deposit Is includod when receivable and Ihe amount can be measured reliably by the charity.. this 15 normally upon nolificalion of the interest paid or payable by the Ban Incomo from charitable a¢tivites indud8s Inrne recognised as eamed las the relatod goods or service$ are provided) under contract or where entillemenl lo grant funding is subject to specific perfomiance conditions. Grant income indudthj in this categw provides funding to support programme activities. 1.6 EXndItUrn Expenditure is recognised onee there is a legal or Constructive obligation lo transfer economic benefit to a third party, rt is probable that a transfer of economic benefits wll be required in settlemen( and the amount of the obligation can be measured reliabty. Expondilure is dassified by xtfvlty. The eo815 of each aGbvity are made up of the total of direct costs and shared cost5, including support costs involved in undertaking each activity. Direct costs attributable to • single activty a allocated direGtty lo that activity. Shargd costs which ¢onlribule lo more than one activity and support costs which are not attributable to a single activty ale apportionèd bets¥een those activities on a basis consist&nt with the use of resources. Central staff costs are alloGat¢d on tho basis of time spent. and depreciation charges allocated C the poth'on of the as$el's use. Support 51s Indude centrd functions and have been allocated lo activity cost categories on a basis consistent wth the uso of resOUe$, for example, allocatin9 property costs by floor areas, or per cayts, staff costs by the ts.me spent and other o)sts by their u8ag9. Govemance costs include the costs attfibutable lo the ¢hanty's complianee with constilLrtional and statutory requirements, IndudiNJ audik. slratesic management and trustee's meetings and ieimbursed expenses. 1.6 Tanglbl• fix assels TangiNe fLx8d assets are initially m8a$ured at cost and subsequently m&qsured at C08t or valuation, net of depreciation and any impairment losse$. Depreciation is recognised $0 as to write off the cost or valuatlon of assets less their residual values over thelr useful lives on the followng ba$e8'. Freehold land and buildings Plant and equipment Fixtures and fittings Motor vehi¢l¢s Over 10 years 250A reducing balance 15% reducing balance 25% reducing balance The gain or loss arising on the iJispo$al of an asset is detennlned as the difference between the sal8 proceeds and the carrying value of the asset. and is recoynised in the 51atemfrnt of financial activities. 1.7 ImpalMnt of Ilxèd assots At each reporting end date. the charity reviews the carrying amounts of its tangible assets to detemlne whether th8re is any indication thal those assets have suffered an impaimienl loss. If any such indication exists, the recoverable 0nt of the asset 1$ estimated in order to dotermine the extent of the impairment bss (if any). 12-
SKYE AND LOCHALSH MENTAL HEALTH ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026 Accounting polici {Contlnu•d} 1.8 Stocs Stocks arg staled al the lower of cost and esllmated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stoeks to their present location and condition. Items held for dithibutson at no or nominal consKleralion are measured the k)wer of replacement cost and cost. Nel realisable value Is the 6slimated selling price less all estimated costs of completion costs to be incurred in marketing, selling arKI distributlon. 1.9 Cash and cash equlv•l•nts Cash and cash eqUalents incltxle cash in hand, deposits held at call with banks, other short-torm liquid investments with OTiginal maluritie5 of three months or less. and bank overdrafts. Bank overdrafts are shown thin borrowings in rrent liabilities. 1.10 Flnanclal Instruments The charity has eloded to aFWy the psOn$ of Sectbon 11 'Baslc Flnandal Instwments. and Secllon 12 'Other Flnancial Instruments1s$ues' of FRS 102 to all of its financial instruments. Financ¢al instruments are recognised in the chanV$ balanc8 $he8t fjn the charity becomes paty to the contractual provisions of the instrument. Financial assets and liabilities are offset, with th8 net amounts presented in the financial stalemenls. when thare is a legally enforceable right to set off the recognised amounts and there 15 an intention lo settle on a nel basis or to realise the ass81 and $ettle the liability simultaneously. B•$i¢ ffftaneial assets Basic ffinanci81 assets, which indude debtors and ea5h and bank balances, are iiilially measured at transaction wce including transaction eosts and are subsequently caffled al amofNsed cost usfjng the effective interest method unless the arrangement eonstitutes a financing transacaion, wthere the Iransaction Is measured al the pres8nl value of the future receipts tliscount8d at a morkol rat& of interest. Financial a$$8ts dassified as receivable within on6 year are not am0sed. Basic financial Ilabllhles Basic financial liabilities, including creditors and bank loans are initially recognised at tran$tIOn pri unless the rangemenl constitutes a financing transaction, where the debt instrument is measured at the present value of the ftrture payTnents diSCnted at a markot rale of intémst. Flnanclal Ilabilitoes das8ffied as payable thin one year are not amortised. Debt instruments are subsequently carried 8t amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or seNlces that have been acquired in the ¢)rdinary UrSe of ioerations from suppliers. Amounts payable are classified as currant liabiliti8s if payment is due wlhin one year or le$$. If not. they are pres8nt8d as non<urrenl liabilities. Trade Creditors are recogni8ed InIal ai transaction price and subsequenty measured al amortised cost using the effectivè inleresl method. Derecognltlon of Ilnanci•l liabllltles Financial liabilities are derecognised when the charity's contractual obligation8 explre or are distharged or cancelled. 13-
SKYE AND LOCHALSH MENTAL HEALTH ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026 Ac¢ountlng pollcles Icontlnued 1.11 Taxation The Charity is considared to pass Ihe lesls set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definllion of a ¢haritsble company for UK corporation lax purposes. Aecordingly, the chanty is potentially exempt from taxab.on in respect of inc¢)me or capital gains received within categories covered by Chapter 3 Part 11 of the Corporalv)n Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charilable purposes. 1.12 Employ bonefits The cost of any unused holiday ents'uement is recognised In the period In which the employefy's Services are received. Termination benefits are re¢ognlsed immediately as an expènse when the charity is demcThtrably ttlmmitted to temiinate the employment of an employee or to provide termination beneffts. 1.13 Rallmmant benefits Payments to definèd contribution retirement b8nefit schemes are charged as an expense as they fall duo. Crltl¢al accountlng •stimat•$ and judgements In the application of the charity's accnting policies, the trustees aT6 requirad to make judgements. estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other Soufces. Thè èstimalas and assoaated assumptions are based on historical experience and other factcts that are considered to bg relevant. Adual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions lo accounting estimates are recogni$ed in the pericJ in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both curyent and fulure perfods. Koy soutces of •stimatlon uncert•lnty Depr•ciation of tsngible lIx assets The depreciation of tangible fixed assets is a key area of estimation. The useful IKe and residual valug of fixed assets Is consid8red and a depreciation rate applied accordingly. Details of the depreciation policies applied n be found in the accounts'n9 policies section ol the notes to the financ481 ststements. The depreciation charge for the year amounts lo £10,101 (2025 £12.063) and the canying value of fixed assets at the year end amounts to £53.599 {2025 £65,532). Donatlons and1ogaci& Unrostrlcted R•$trlctod funds funds g•n8ral 2026 Total Total 2026 2026 2026 Donation5 and gifts Grants received 30,094 30.833 30.094 94.593 20,369 56.300 63.760 60,927 63,760 124.687 76,669 14-
SKYE AND LOCHALSH MENTAL HEALTH ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026 Donatlons and 18gacies (Continuodl Grants recelvable for core actlvllles Highland Third Sector Interfa¢8 NHS Highland The Highland Council The Robertson Trust Agnes Hunter Trust The WocJ Found8t)n 20.000 10.000 33.760 20,000 10,000 33.760 20,000 8,333 2,500 17.327 18.973 20.000 20,000 8,333 2,500 30,833 63.760 94,593 56.300 lThcomo from charltable actlvltle$ Charllabh Charitable Income incorno 2026 2026 NHS Highland Trust Cafe Financial InduSTon Project Furniture Projects 165,212 17,701 916 12,725 165,213 13.299 2,455 18,324 198,554 199.291 Anatysls by fund Unrestricted fvnds- general Unrestricted funds- Designated 183,829 12,72S 180.967 18.324 196,554 199.291 In¢ome from oth•r trading a¢tlvStlg8 Unrestrlcted Unrestricted funds funds 2026 2025 Fundraising events 782 15-
SKYE AND LOCHALSH MENTAL HEALTH ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026 Income from Invostmonts Unrestrlctsd UnroStrl¢ted funds funds 2026 2025 Interest receivable 250 Expendlturo on charltablo activitles Charltsble activities Charltab actlvlties 2025 2026 Dlrect costs Staff costs 200.875 8.273 3,542 10.101 186,448 10,450 2,794 12,083 In Kind Dlrect Depreciation, amortiS81ion and other slmllar costs 222.791 211.755 Share of 8UPPOrt and gov•rnance costs {s•• note 8) Support Govemanco 58,909 2.821 61,097 2,679 284.521 275,531 Analysis by fund Unrestricted funds- general Unreslrided fund$- Dèsignated Restricted lunds 208.862 1,751 73,908 239.615 2,115 33,801 284,521 275,531 16-
SKYE AND LOCHALSH MENTAL HEALTH ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THEYEAR ENDED 31 MARCH 2026 Support costs allocated to actlvltles 2026 2025 Eslablishmenl costs Office expenses Subscriptions Rent Sundry and other Costs Travel and subsistence Fundraisin9 and project development Governance costs 15,610 7.006 2.334 23,413 1,052 9,494 14,986 6,746 1,563 25,005 2,806 9,694 297 2,679 2,821 61.730 63,776 Anatysed tw9•n. Charitable activrties 61.730 63,776 2026 2025 Governance Costs ¢ompris¢: Independent examiners fees Legal and professional fees 2,710 111 2,645 2,821 2,679 Indop•nd•nt examln•f$ f 2026 2025 Examination of the financial statements 2,710 2,645 10 Tru$ts•s None of the trusteas lor any persons connected with them) re¢oNed any r8mun8ration or b8ngfi1$ from Iho charity during the year. 11 Empk+yg9s The av8rag6 monthly number ofèmployees during the year was: 2026 Nurnbor 2025 Number 17-
SKYE AND LOCHALSH MENTAL HEALTH ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026 11 Employ0•8 (Conllnuodl Employment costs 2026 2025 Wages and salaries Soual security cost8 other pension costs 179,953 10,574 10,348 170,556 9,335 6.557 200,875 186.448 6 (2025- 41 of the employees partl¢lP8led in the Defined Contribution Pension Schemes. The totsl empksyee benefits of key management personnel of the ¢h8rity were £49,041 (2025- £47,293) There were no employees wh08e annual remuneration was MO than £60,OIXI. 12 Other exp•nditure Unrestrlctsd Unrestrlcted funds funds 2026 2025 Net loss on disposal of taroible fixed assets 13 13 Taxation The ¢harty Is exempt from lax on irKome and gains falling within section 505 of the Taxes Act 1988 or SlI0n 252 of the Taxalionof Chargeable Gains Act 1992 to the extent that these are applied lo its charitable objecls. 18-
SKYE AND LOCHALSH MENTAL HEALTH ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026 14 Tanglble fixed assgts Froohold lur and kyJilding¥ Pl•nt and Fkxtwe8 •nd tguipm¢rt filtings Motor vehicles T4>ts1 Cost At 1 April 2025 Additions Disposals 30.084 42,885 112,817 34,000 219,786 409 {465) (2371 1228} Al 31 March 2026 30,084 43,057 112,589 34,000 219,730 Dtpreclatlon and Impaimwnt Al 1 April 2025 Depreeialion Charged in the year Eliminated in respect of di5posa15 30,084 37.010 59.699 8.082 29,461 1,135 156,254 10,101 12241 <224) At 31 March 2026 30,084 37,670 67,781 30.596 168,131 Carrying amount At 31 March 2026 5,387 44.808 3,404 53,599 At 31 March 2025 5.875 53,118 4,539 63,532 15 Stocks 2026 2025 Finished goods and goods for resale 1,300 1,600 16 Debtors 2026 2025 Amounts falllng du8 within one ymr. Other debtors Prepayments ond accTued incomè 5,000 5.280 5,882 5,882 10.280 19-
SKYE AND LOCHALSH MENTAL HEALTH ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026 17 Ctvditors: amounts falllng du• wlthln ona year 2026 2026 Other tsxalion and s181 secjjrity Trade eredilors Accruals and deferred income 5,375 252 4,467 3,130 2,670 10,094 8.186 18 Government grants Defemed income is included in thg financial slalements as follows.. 2026 2026 Deferre(l income is included wthin" Current liabilities 1,667 2026 2025 Movements in the year. D*rred Income al 1 April 2025 Released from previous period$ Resources deferred in the year 7,327 (7,3271 1.667 Defeed income at 31 March 2026 1,687 Deferd income relates to grant income received In advancé. 19 Retlroment benefft xhon 2026 2025 Defln•d ¢ontrlbutlon $eh•mes Charge to profil or loss in respe¢t of defined contribution schemes 10,348 6.557 The tharity operoles a defined contribution pension seheme for all qualifying employees. The assets of thfr scheme are held separatdy from those ol the charity in an independentw administered fund. -20-
SKYE AND LOCHALSH MENTAL HEALTH ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026 20 Unrestrl¢t•d funds- Designatad The Income of fvnds of the charity include the following designated funds whKh have been set ade out of unrestricted funds by the Irusteps for specific purposes.. At 1 Aprfl 2025 Incoming resources Ro$ourco$ expended Transfers Ai 31 March 2026 HIE Skye and ster R088 Highland Council MISG Benefactor Furniture project Centre fijrniture Branching out Maintenance 13 17 56 45,985 418 1,090 167) 1811 113) {1.5271 1631 (54) (64) 43 57.183 355 1,090 10.000 12,725 10.000 47,579 12,725 {1,7511 10,OCIO 68.553 Prwlous yèar: At 1 Aprfl 2024 Incoming Resource5 resources expended Trnnsf•rs At 31 March 2025 HIE Skye and ter Ross Highland Councl MISG Benefactor Fumiture projè Centrg furniture Branchlng out 91 113 71 29,513 492 1,090 (181 {96} (151 11.8521 174) 13 17 56 45,985 418 1,090 18.324 31.370 18,324 {2.115) 47.579 The speafic purposes for whlch the fund8 are to be applied are as follows.. HIE Skye & ISter Ross and Highland Counul MISG d85ignaled fiJnds have been ffijlty expended and ar held against fixgd assets Wfth depreaation being tharged against the fund. The Benefactors. dewgnated fund has continued Its be used to meet members expenses and activltles, out th the core services provided. OuigoiThJ rgsgur¢es represent expenses for the benefactor a¢tiviti&s and depreciation against assets which were purchas8d by the fund. The fvmiture project collects items of unwanted fumiture from the 8Utrounding area and supplie6 it lo those Ntho have been homelèss or have every little due to poverty and ill heatth.These have have begn fvlly expended and are held against fixed assets wth depreciation being ¢harged against the fvnd. The designated Branching Out fund indudes incoming resources from Highland Third Interfa and 1$ held by the charity for a mental health project whh is a jolnt initiative befvn NHS Highland and the Forestry Commission. It is not a constituted group and cannot receive thg money direcUy therefore the charty holds this money on their behaw. The maintenanc* fund has 8n set up for planned maintenance and improvements. 21
SKYE AND LOCHALSH MENTAL HEALTH ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026 21 Re$trict•d fvnd$ The restrided funds of thè chaty comprise the unaxpended balances of donations and grants held on trust subject lo specthc conditions by donors as to how they may be used. Mov•menl In funds IomIng Resourrn$ Balan at resour •xp•nded 1 April 2025 Movement in funds Incoming Rosour£a Balan¢• at r8¥oiir¢o$ OXP0nd•d 31 March 2026 Bal•ncè at 1 Aprfl 2024 Highland Cwncil Ward NHS Highland Portree & Braes Communlty Trust Mental Health & KÈllbeing Fund Highland cohd & Drug Partnership Community Regenerati Fund 115 (17) 98 (15) 83 10,000 (10,0001 {1571 887 1133} 754 7.327 7.327 {14.654} 20,000 120.0¢)0} 10.000 10,000 {10,000) 18,973 118,973) 33,760 133,7601 36,300 (33,8011 10.985 63,760 173,9081 837 The Portre8 & Braes Community Trust grant was for the purchase of a gazebo for thè outdoor area. Thls has been fully expended and are held against fixed assets with depreciation being charged against the fund. The Mental Health and Wellbeing Fund is lo support the reopènlng of the weekend $8rviee, and lo help wlth the d8liveriNJ of training and deuder skills to th& community. The Highland Council Fyovided a ward grant for trte purchase testing equipment, patio fumitur8 and a loft ladder. This has bèen fully expended and are held against fixed assets with depreuation being charged against the fvnd. NHS Highlan¢J provided a grant to support indivlduals with substance misusa and other mental health bssues collaborats'on with Skye & Lod)alsh community mental h8allh servi. The Highlands and l$lands Enterprise grant was r8ceive(I lo upgrade the kit¢hen to catering standards. As the grant was used for this purpose during the pnoi period, there was a transfer to unreslrided fvnds during the prior year. The Hlghland Counal Community Regeration Fund provided a grant to support the costs of employing a dedicated staff member lo provide conwstsney and an enhanced service to those livln9 in South Skye arKI Lochalsh. It was also used to replace an old shed and equip it. The Hlghland Dru9 &Alcohol Project provided a gyanl to help fower people develop problem drug and alcohol -22-
SKYE AND LOCHALSH MENTAL HEALTH ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2026 22 Unr•strlct•d funds The unrestrfcted funds of Ihe charlty MprISe the unexpended balance8 of donation$ and grants which are not subject to spec¢ C4)ndifjons by doTh)rs and grantors as to how they may be usèd. These indude designated funds 1¢ have been set aside oul of unrestricted fvnd8 by the tru8tees for $peur purposes. At 1 April 2025 Incoming resources Resources expended Transfors At 31 March 2026 General funds 53.486 245.544 (208,8751 (10,0001 80,155 Prevlous year: At 1 Aprfl 2024 In¢omlng resources Resou5 gxpended Tran8fèrs At 31 March 2025 General funds 71,515 221.586 {239.6151 53,486 Transfers The transfer dunng the yearwas In relation to Ihe malntenan¢e fvnd. -23-
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SKYE AND LOCHALSH MENTAL HEALTH ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026 24 Operating lease commrtments Lesseg At the reporb'ng end date the charity had outstanding commitrnen15 for future minimum lease payments under non-cancEllable operalir¥J leases, which fall due as follows." 2026 2025 Wthin one year Btheen two and five years In over five years 22.093 88,372 154,651 22,093 88,372 176,744 265,116 287,209 25 Related party tran$acllons There werè no dsdosable related paty transactions during the year12025- none). -25-