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← Kirknewton Community Development Trust Limited

2025-08-31-accounts

Docusign Envelope ID: 65356C59-5B78-4D6D-A37D-D9F20828BB52

REGISTERED COMPANY NUMBER: SC307425 (Scotland) REGISTERED CHARITY NUMBER: SC037895

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 August 2025

for

Kirknewton Community Development Trust Ltd

EQ Accountants Ltd 47-49 The Square Kelso Roxburghshire TD5 7HW

Docusign Envelope ID: 65356C59-5B78-4D6D-A37D-D9F20828BB52

Kirknewton Community Development Trust Ltd

Contents of the Financial Statements for the Year Ended 31 August 2025

Page
Reference and Administrative Details 1
Report of the Trustees 2 to 5
Independent Examiner's Report 6
Statement of Financial Activities 7
Balance Sheet 8 to 9
Notes to the Financial Statements 10 to 21
Detailed Statement of Financial Activities 22 to 23

Docusign Envelope ID: 65356C59-5B78-4D6D-A37D-D9F20828BB52

Kirknewton Community Development Trust Ltd

Reference and Administrative Details for the Year Ended 31 August 2025

TRUSTEES Stewart McKenna (Chair)
Hugh Hunter Gordon
Martin Hall
Caroline Hamilton
Susan Campbell
Anthony Foster
REGISTERED OFFICE 41 Charlotte Square
Edinburgh
EH2 4HQ
PRINCIPAL OFFICE The Green Room
12 Main Street
Kirknewton
EH27 8AH
REGISTERED COMPANY SC307425 (Scotland)
NUMBER
REGISTERED CHARITY SC037895
NUMBER
INDEPENDENT EXAMINER EQ Accountants Ltd
41Charlotte Square
Edinburgh
EH2 4HQ
Santander
BANKERS Customer Service Centre
Bootle
Merseyside
L30 4GB
Triodos Bank
Deanery Road
Bristol
BS1 5AS

Page 1

Docusign Envelope ID: 65356C59-5B78-4D6D-A37D-D9F20828BB52

Kirknewton Community Development Trust Ltd

Report of the Trustees for the Year Ended 31 August 2025

The Charity is constituted as a company limited by guarantee and is governed by its Memorandum and Articles of Association. It is registered as a charity with the office of the Scottish Charity Regulator. Membership is open to persons over the age of 16 who are ordinarily resident in the community, are entitled to vote at a local government election in a polling district that includes the community and support the aim and activities of the company. Each member of the company undertakes to contribute such an amount as may be required (not exceeding £1) to the company’s assets if it should be wound up.

The management of the Charity is the responsibility of the Board of Directors. The directors, who are the charity’s trustees for the purposes of charity law, are its key management personnel and are not remunerated. The directors meet regularly, making all major decisions, including in relation to finances. The charity has employees to assist in its day-to-day operations including in the areas of fundraising, financial administration and organising and delivering charitable activities.

Under the Articles of Association at each Annual General Meeting the members may elect (providing he/she is willing to act) any member to be a director. In addition the directors may at any time appoint: any member (providing he/she is willing to act) to be a director; or any non-member of the company (providing he/she is willing to act) to be a director either on the basis he/she has been nominated by a body with which the company has close contact in the course of its activities or on the basis that he/she has specialist experience and/or skills which could be of assistance to the directors.

In terms of recruiting new trustees the Board constantly network in this regard and the intention is to hold workshops to explain what KCDT does as part of a recruitment drive.

Induction and training of directors is achieved by working personally with new appointees prior to and after recruitment.

In terms of relationships with other parties: as noted in the Chairman’s Report, we continued a close collaboration with Kirknewton Community Council, with other local volunteer groups who are themselves committees of the board: Kirknewton Community Association who are responsible for the Village Hall, Muddy Boots and the Gala Association. We also have excellent working relationships with the Allotments Association, Cyrenians Organic Farm who supply Organic Veg Bags and our very supportive village shop Festival Stores.

OBJECTIVES AND ACTIVITIES

Objectives

The objects as detailed in the Memorandum and Articles of Association are as follows:a) to relieve poverty through the development of practical initiatives to combat fuel poverty in Kirknewton and its environs.

Page 2

Docusign Envelope ID: 65356C59-5B78-4D6D-A37D-D9F20828BB52

Kirknewton Community Development Trust Ltd

Report of the Trustees for the Year Ended 31 August 2025

OBJECTIVES AND ACTIVITIES

Overall Objectives and Strategies

Our overall objectives and our strategy for achieving our aims and objectives outlined in the Kirknewton Community Development Plan 2021-25 - a publicly available document on our website https://www.kirknewton.info/general-8-3. This identifies 5 main themes as undernoted together with priorities in relation to the themes and the next steps and actions.

In any individual year, our abilities to implement our priorities is highly dependent on obtaining suitable funding. The current year was, as we had anticipated, both in terms of financial resources and volunteer time dominated by the housing project. A total of nearly £1.4 million was spent on the housing project in the year (treated as capital expenditure) compared with other expenditure (revenue expenditure), excluding impairment, of £126,868. This project, more details of which are given in the achievements section, was aiming to realise a proposal in our plan, in relation to Community Facilities and Services, to do with support for those in our community, facing increasing needs, in an affordable manner. There were cost overruns on this project and its realisation required every drop of our reserves and triggered fundraising (post year end as detailed in the financial review) restoring them to a significant extent. Therefore, we ultimately assess this project to be a success and a major achievement for a charity of our size.

The strategic aim has from the outset been to establish a long-term core funding source by participation, utilising our reserve resources if necessary, in the community aimed opportunities in renewable energy sources. We remain actively engaged in this pursuit.

Performance

We consider the housing project to have been a success for the reasons outlined above.

In addition to the housing project despite limited resources we were successful in carrying out a number of other activities during the year as noted in the achievements section below.

In general terms the charity aims to be breakeven in relation to general fund current assets/cash in a given year. We have not achieved that this year due to the overruns on the housing project however this has been significantly restored following the year end.

We do not currently use Key Performance Indicators to assess our performance.

Page 3

Docusign Envelope ID: 65356C59-5B78-4D6D-A37D-D9F20828BB52

Kirknewton Community Development Trust Ltd

Report of the Trustees for the Year Ended 31 August 2025

FINANCIAL REVIEW

Financial position

Income for the year decreased relative to the previous year by £501,916 to £339,820. This was in the main due to a decrease in the capital grant received from the Scottish Government towards the construction project. Expenditure for the year decreased relative to the previous year by £621,383 to £173,256. This was principally due to an impairment of £667,771 regarding the assets under construction in the previous year.in the previous year.

There was a surplus of £230,051 (2024 - £220,223) for the year in relation to restricted funds mainly due to the receipt of the remaining capital grant. There was a deficit of £61,431 (2024 - £173,126) for the year in relation to unrestricted funds, principally due to £40,616 of the impairment loss on the construction project being met by unrestricted funds and a full year of bank loan interest being incurred.aTotal funds of the charity increased to £1,240,977 at 31 August 2025 of which £977,664 were restricted and £263,313 unrestricted.

The construction of the 7 houses was completed during the year, final grants totalling £146k being received towards the cost of completion and in addition an unrestricted one-off donation of shares of £20,342 , was also received.

It should also be noted that, contained with unrestricted reserves are designated reserves of £1,771 that the Directors have designated for use on the activities previously carried out by the Kirknewton Community Association.

The most significant financial risk faced by the charity at the year-end was, potentially unfunded, cost overruns on the housing project. The plans and strategy adopted by the charity in mitigating this risk were: to engage legal assistance to attribute part of the cost overruns to the contractor on the project; to seek further funding, including from the Scottish Government, as a contribution to the cost overruns. We were successful on both counts, including the receipt of further grants of £232k as referred to above. Ultimately the project followed the pattern set by the previous Green Room project, where reserves are deployed as working capital but the project is largely funded by grants. It is most unlikely that any of the other aspirations in our renewed development plan will demand the same level of working capital. This is a matter that the Board has and will continue to review, especially in the light of the withdrawal of local authorities from providing community facilities.

As at the date of signing the accounts the housing project has been successfully completed and tenants are in occupation. With the exception of the retention due to the contractor there are no remaining liabilities in relation to the project and the charity has sufficient funds to enable it to continue to operate for the foreseeable future.

Reserves policy

The overall policy is to preserve as substantially as possible the charity's unrestricted reserves for the purpose of long-term capital investment from which may be funded a number of activities for the benefits of the community and this remains a principal objective and strategy. With this in mind the Directors have entered into grant based funding arrangements where many specific costs are covered by restricted grants and appropriate governance procedures are in place to ensure that expenditure is controlled within each grant envelope.

Whilst in the current year the decision was taken to invest a substantial proportion of unrestricted reserves in the construction project, our long-term policy on reserves remains to maximise cash to enable the best investment we can make in a renewal energy project and thus deliver long-term income to keep the trust afloat and we remain actively engaged in this pursuit. Such a project exists with the proposed Camilty Windfarm where we have an offer of a 10% stake which would give us a sustainable income for the next 35 years, however we need an estimated £3M to enable us to take advantage of this opportunity.

Page 4

Docusign Envelope ID: 65356C59-5B78-4D6D-A37D-D9F20828BB52

Kirknewton Community Development Trust Ltd

Report of the Trustees for the Year Ended 31 August 2025

FUTURE PLANS

As at the year-end our plan was to complete the housing project, to ensure suitable funding was in place to achieve that and thereafter to accommodate tenants. As outlined in greater detail in the financial review we are delighted to report we have now achieved this objective.

We intend to, and are currently in the process of, updating our 5-year Development Plan and realise that new challenges have arisen. It is of particular concern that our Youth Development has lapsed through lack of staff and corresponding funding but new ideas are emerging that we will continue to pursue.

We plan to continue investigating potential investment in renewal energy projects.

Statement of Trustees’ Responsibilities

The trustees, who are also directors for the purposes of company law, are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.

In preparing these financial statements, the trustees are required to:

 select suitable accounting policies and apply them consistently;

 observe the methods and principles in the applicable Charities SORP;

 make judgements and estimates that are reasonable and prudent;

 prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Small company provisions

This report has been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

The trustees’ annual report was approved and signed on behalf of the board of trustees by:

Stewart McKenna Chairman

Date:

25/03/2026

Page 5

Docusign Envelope ID: 65356C59-5B78-4D6D-A37D-D9F20828BB52

Independent Examiner's Report to the Trustees of Kirknewton Community Development Trust Ltd

I report on the accounts for the year ended 31 August 2025 set out on pages seven to twenty one.

Respective responsibilities of trustees and examiner

The charity's trustees are responsible for the preparation of the accounts in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). The charity's trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the Accounts Regulations does not apply. It is my responsibility to examine the accounts as required under Section 44(1)(c) of the Act and to state whether particular matters have come to my attention.

Basis of the independent examiner's report

My examination was carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations 2006. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts.

Independent examiner's statement

In connection with my examination, no matter has come to my attention :

have not been met; or

Walter Raymond Paterson FCCA The Association of Chartered Certified Accountants

EQ Accountants Ltd

41 Charlotte Square Edinburgh EH2 4HQ

30-03-2026 | 09:52 BST Date: .............................................

Page 6

Docusign Envelope ID: 65356C59-5B78-4D6D-A37D-D9F20828BB52

Kirknewton Community Development Trust Ltd

Statement of Financial Activities for the Year Ended 31 August 2025

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
Charitable
Other trading activities
3
Investment income
4
Other income
Total
EXPENDITURE ON
Raising funds
5
Charitable activities
6
Charitable
Other
Total
Net gains on investments
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
20,842
11,688
-
1,872
778
35,180
6,297
51,754
40,616
98,667
2,056
(61,431)
323,394
261,963		 Restricted
funds
£
293,779
-
10,861
-
-
304,640
7,988
66,601
-
74,589
-
230,051
747,613
977,664		 31/8/25
Total
funds
£
314,621
11,688
10,861
1,872
778
339,820
14,285
118,355
40,616
173,256
2,056
168,620
1,071,007
1,239,627		 31/8/24
Total
funds
£
820,853
3,315
9,418
7,249
901
841,736
15,491
111,377
667,771
794,639
-
47,097
1,023,910
1,071,007

The notes form part of these financial statements

Page 7

Docusign Envelope ID: 65356C59-5B78-4D6D-A37D-D9F20828BB52

Kirknewton Community Development Trust Ltd

Balance Sheet
31 August 2025
Notes
FIXED ASSETS
Tangible assets
11
Investment property
12
CURRENT ASSETS
Debtors
13
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
14
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS
Amounts falling due after more than one year
15
NET ASSETS
FUNDS
16
Unrestricted funds
Restricted funds
TOTAL FUNDS		 31/8/25
£
138,151
1,470,000
1,608,151
157,030
44,864
201,894
(48,878)
153,016
1,761,167
(521,540)
1,239,627
261,963
977,664
1,239,627		 31/8/24
£
1,483,593
-
1,483,593
3,681
171,744
175,425
(63,991)
111,434
1,595,027
(524,020)
1,071,007
323,394
747,613
1,071,007

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2025.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2025 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

The notes form part of these financial statements

continued...

Page 8

Docusign Envelope ID: 65356C59-5B78-4D6D-A37D-D9F20828BB52

Kirknewton Community Development Trust Ltd

Balance Sheet - continued 31 August 2025

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by: 25/03/2026

.............................................

Stewart McKenna - Chairman

The notes form part of these financial statements

Page 9

Docusign Envelope ID: 65356C59-5B78-4D6D-A37D-D9F20828BB52

Kirknewton Community Development Trust Ltd

Notes to the Financial Statements for the Year Ended 31 August 2025

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) second edition issued October 2019, The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006, the Charities Accounts (Scotland) Regulations 2006 (as amended) and UK Generally Accepted Practice as it applies from 1 January 2015.

The financial statements have been prepared on the historical cost basis and relate to the individual entity only.

Kirknewton Community Development Trust (KCDT) meets the definition of a public benefit entity under FRS102. The financial statements are prepared in sterling which is the functional currency of the charity and are rounded to the nearest pound.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the charity's accounting policies the Directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. As the estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant, actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis and those that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:

Useful economic lives of tangible assets and depreciation charge: The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually and are amended when necessary to reflect current estimates based on technological advancement, future investments, economic utilisation and the physical condition of the asset. The net book value of tangible fixed assets at the year-end is stated in note 11.

Income

Income from donations and legacies comprises: Donations and all grants receivable except those that are for the performance of a service. Income is recognised at such time as there is entitlement, it is probable that the income will be received and the amount can be measured with sufficient reliability. Income is only deferred where: The donor specifies that the grant or donation may only be expended in future accounting periods or conditions imposed by the donor which must be met before the charity has unconditional entitlement to the grant or donation have not been attained. In such circumstances income is credited to deferred income and accounted for as a liability.

Investment income comprises: interest receivable on cash balances held in interest bearing current accounts.

Income from charitable activities comprises: income received under contract or where entitlement to grant funding is subject to particular service requirements. Such income is recognised as earned as the related services are provided.

Income from other trading relates to income raised from fundraising events and activities.

Expenditure

Expenditure is recognised when a liability is incurred i.e. there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and it can be measured reliably. Contractual arrangements are recognised as goods or services are supplied.

continued...

Page 10

Docusign Envelope ID: 65356C59-5B78-4D6D-A37D-D9F20828BB52

Kirknewton Community Development Trust Ltd

Notes to the Financial Statements - continued for the Year Ended 31 August 2025

1. ACCOUNTING POLICIES - continued

Expenditure

Expenditure is classified under the following activity headings:

Expenditure on raising funds which is the expenditure incurred in attracting grants and donations and in relation to fundraising events and activities.

Expenditure on charitable activities which is expenditure associated with the various activities in furtherance of KCDT's objectives including those support costs and costs relating to the governance of the charity apportioned to charitable activities.

As KCDT is not registered for VAT the expenditure is shown inclusive of VAT which is irrecoverable.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

The Charity has various types of funds which require to be separately disclosed as follows:-

Unrestricted funds are funds which are expendable at the discretion of the Board in furtherance of the objects of the charity.

Designated funds are unrestricted funds which the Board has decided at its discretion are to be set aside for a specific purpose.

Restricted income funds are funds to account for situations where a donor requires that a grant or donation can only be spent on a particular purpose. Related expenditure is identified to the fund, together with a fair reflection of support costs. Restricted income funds which are specifically to fund capital expenditure are separately identified in the relevant note to the accounts.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Support costs

Support costs are those costs incurred to facilitate an activity. Support costs have been differentiated between governance costs and other support costs. Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.

Support costs relating to a specific activity are allocated directly to that activity. Where support costs relate to several activities they have been apportioned as set out in note 8.

Grants for the purchase of fixed assets

Grants received by the Charity which are specifically for the purchase of fixed assets are recognised as incoming resources in the statement of Financial Activities when receivable. The relevant fund in which the net book value of assets so acquired is reflected is then reduced over the economic life of the asset in line with its depreciation unless there are no further restrictions once the fixed asset has been acquired in which case its net book value is transferred to general funds.

continued...

Page 11

Docusign Envelope ID: 65356C59-5B78-4D6D-A37D-D9F20828BB52

Kirknewton Community Development Trust Ltd

Notes to the Financial Statements - continued for the Year Ended 31 August 2025

1. ACCOUNTING POLICIES - continued

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments.

Creditors and provisions

Creditors and provisions are recognised where the company has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Financial instruments

The charity only has financial assets and financial liabilities that qualify as basic financial instruments. Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

2. DONATIONS AND LEGACIES

Unrestricted
Restricted
funds
funds
£
£
Donations
20,342
750
Grants
500
293,029
20,842
293,779
Grants:
Unrestricted
Restricted
Scottish Government - Housing grant
-
145,456
DTAS
-
35,000
National Heritage
-
-
Big Lottery
-
20,000
West Lothian Council
-
2,589
The Lady Marian Gibson Trust
-
-
Arnold Clark
500
2,000
Foundation Scotland
-
47,984
Garfield Weston
-
40,000
Donations
20,342
750
20,842
293,779		 31/8/25
Total
funds
£
21,092
293,529
314,621
2025
Total
£
145,456
35,000
-
20,000
2,589
-
2,500
47,984
40,000
293,528
23,092
314,621		 31/8/24
Total
funds
£
1,025
819,828
820,853
2024
Total
£
761,760
34,500
(4,308)
20,000
4,876
3,000
-
-
-
819,828
1,025
820,853

Of the grants received in the current year £148,045 (2024 - £782,328) are considered to be government grants as defined in the Charities SORP (FRS102) and are all to fund specific projects more details of which can be found in note 16 to the accounts.

continued...

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Docusign Envelope ID: 65356C59-5B78-4D6D-A37D-D9F20828BB52

Kirknewton Community Development Trust Ltd

Notes to the Financial Statements - continued for the Year Ended 31 August 2025

3.
OTHER TRADING ACTIVITIES
Unrestricted
funds
£
Fundraising events
-
4.
INVESTMENT INCOME
Unrestricted
funds
£
Deposit account interest
1,872
5.
RAISING FUNDS
Raising donations and legacies
Unrestricted
funds
£
Fundraising Costs
-
Support costs
6,297
6,297
6.
CHARITABLE ACTIVITIES COSTS
Charitable
7.
DIRECT COSTS OF CHARITABLE ACTIVITIES
Events including gala
Other charitable expenditure
Running costs - Pavilion & Village
Improvements to community facilities
Food & fuel support
Depreciation
Interest paid		 Restricted
funds
£
10,861
Restricted
funds
£
-
Restricted
funds
£
75
7,913
7,988
Direct
Costs (see
note 7)
£
66,174		 31/8/25
Total
funds
£
10,861
31/8/25
Total
funds
£
1,872
31/8/25
Total
funds
£
75
14,210
14,285
Support
costs (see
note 8)
£
52,181
31/8/25
£
13,578
1,265
1,103
4,303
2,224
4,521
39,180
66,174		 31/8/24
Total
funds
£
9,418
31/8/24
Total
funds
£
7,249
31/8/24
Total
funds
£
134
15,357
15,491
Totals
£
118,355
31/8/24
£
10,371
3,928
2,177
4,157
8,327
8,475
14,319
51,754

continued...

Page 13

Docusign Envelope ID: 65356C59-5B78-4D6D-A37D-D9F20828BB52

Kirknewton Community Development Trust Ltd

Notes to the Financial Statements - continued for the Year Ended 31 August 2025

8. SUPPORT COSTS

SUPPORT COSTS
Governance
Management
costs
£
£
Raising donations and legacies
12,972
1,238
Charitable
48,975
3,206
61,947
4,444		 Totals
£
14,210
52,181
66,391

Salary costs have been allocated to activates based on the directors' estimate of time spent by employees on an activity. Other support costs have been allocated to activities based on estimated usage.

Support costs, included in the above, are as follows:

31/8/25 31/8/24
Raising
donations
and Total Total
legacies Charitable activities activities
£ £ £ £
Wages 7,660 31,708 39,368 39,590
Pensions - 475 475 581
Insurance 1,583 2,375 3,958 1,552
Light and heat 579 868 1,447 1,793
Telephone 452 676 1,128 982
Postage and stationery 60 91 151 176
Sundries 740 1,111 1,851 804
Staff training 253 381 634 155
Cleaning 293 440 733 851
Property repairs and maintenance 187 281 468 354
Subs & memberships 322 484 806 816
IT Costs 457 685 1,142 875
Professional fees 186 9,099 9,285 17,211
Bank charges 200 301 501 -
Auditors' remunerationfor non audit work 1,238 3,206 4,444 2,040
Auditors' remuneration - - - 7,200
14,210 52,181 66,391 74,980

9. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

Depreciation - owned assets
Interest payable on bank loan
Impairment losses - tangible fixed assets		 31/8/25
£
4,520
40,616
39,180		 31/8/24
£
8,475
14,319
667,771

continued...

Page 14

Docusign Envelope ID: 65356C59-5B78-4D6D-A37D-D9F20828BB52

Kirknewton Community Development Trust Ltd

Notes to the Financial Statements - continued

for the Year Ended 31 August 2025

10. STAFF COSTS

Wages and salaries
Other pension costs
The average monthly number of employees during the year was
Average number of employees
No employees received emoluments in excess of £60,000.
TANGIBLE FIXED ASSETS
Freehold
property
£
COST
At 1 September 2024
175,272
Additions
Impairments
Transfer to ownership
-
-
At 31 August 2025
175,272
DEPRECIATION
At 1 September 2024
38,555
Charge for year
3,505
At 31 August 2025
42,060
NET BOOK VALUE
At 31 August 2025
133,212
At 31 August 2024
136,717		 as follows:
Improvements
to
property
£
1,341,528
169,088
(40,616)
(1,470,000)
-
-
-
-
-
1,341,528		 31/8/25
£
39,368
475
39,843
31/8/25
5
Fixtures
and
fittings
£
62,493
606
-
63,099
57,145
1,015
58,160
4,939
5,348		 31/8/24
£
39,590
581
40,171
31/8/24
3
Totals
£
1,579,293
169,694
(40,616)
(1,470,000)
238,371
95,700
4,520
100,220
138,151
1,483,593

11. TANGIBLE FIXED ASSETS

Assets Under Construction came into use during the year and have been transferred to ownership (as shown in note 12).

continued...

Page 15

Docusign Envelope ID: 65356C59-5B78-4D6D-A37D-D9F20828BB52

Kirknewton Community Development Trust Ltd

Notes to the Financial Statements - continued for the Year Ended 31 August 2025

12.�INVESTMENT PROPERTY

FAIR VALUE
Transfer to ownership
At 31 August 2025
NET BOOK VALUE
At 31 August 2025
At 31 August 2024		 £
1,470,000
1,470,000
1,470,000
-

Investment Property relates to seven 2-bedroom, low-energy homes designed for older residents and have been provided as security both in relation to the loan of £525,000 from Ecology Building Society and the funding provided by the Scottish Government towards the construction project. The properties were completed and rental income received during the year.

13.�DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade debtors
Other debtors
Prepayments and accrued income
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Bank loans and overdrafts (see note 19)
Trade creditors
Social security and other taxes
Other creditors
Accrued expenses		 31/8/25
£
130
155,081
1,819
157,030		 31/8/24
£
655
1,539
1,487
3,681
31/8/24
£
980
8,422
387
93
54,112
63,991
31/8/25
£
3,460
36,793
967
118
7,540
48,878

14.�CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

The bank loan is secured by a fixed charge over the company's property disclosed under assets under construction.

continued...

Page 16

Docusign Envelope ID: 65356C59-5B78-4D6D-A37D-D9F20828BB52

Kirknewton Community Development Trust Ltd

Notes to the Financial Statements - continued for the Year Ended 31 August 2025

15.�CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Bank loans (see note 19) 31/8/25
£
521,540		 31/8/24
£
524,020

The bank loan is secured by a fixed charge over the company's property disclosed under assets under construction. The bank loan is repayable by instalments over a 40 year period and was advanced, in tranches, from March 2024. The interest rate charged is 7.39%. The amount repayable by instalments which falls due in more than 5 years is £512,906.

16.�MOVEMENT IN FUNDS

Unrestricted funds
General fund
Designated - KCA
Restricted funds
Cycle Scotland
Big Lottery
Gala Fund
Harperrig Broadband
Health & Wellbeing
DTAS
Scottish Government - Housing grant
Other
TOTAL FUNDS
Unrestricted funds
General fund
Designated - KCA
Restricted funds
Cycle Scotland
Big Lottery
Gala Fund
Health & Wellbeing
DTAS
Scottish Government - Housing grant
Other
TOTAL FUNDS		 Incoming
resources
£
34,048
1,132
35,180
-
20,000
9,772
2,650
35,000
232,941
4,277
304,640
339,820		 At 1/9/24
£
320,865
2,529
323,394
12,373
6,834
7,385
13,180
3,472
20,556
671,072
12,741
747,613
1,071,007
Resources
expended
£
(96,777)
(1,890)
(98,667)
(4,000)
(23,068)
(8,792)
(5,190)
(26,694)
(3,227)
(3,618)
(74,589)
(173,256)		 Net
movement
in funds
£
(60,673)
(758)
(61,431)
(4,000)
(3,068)
980
-
(2,540)
8,306
229,714
659
230,051
168,620
Gains and
losses
£
2,056
-
2,056
-
-
-
-
-
-
-
-
2,056		 At
31/8/25
£
260,192
1,771
261,963
8,373
3,766
8,365
13,180
932
28,862
900,786
13,400
977,664
1,239,627
Movement
in funds
£
(60,673)
(758)
(61,431)
(4,000)
(3,068)
980
(2,540)
8,306
229,714
659
230,051
168,620

continued...

Page 17

Docusign Envelope ID: 65356C59-5B78-4D6D-A37D-D9F20828BB52

Kirknewton Community Development Trust Ltd

Notes to the Financial Statements - continued for the Year Ended 31 August 2025

16.�MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

At 1/9/23
£
Unrestricted funds
General fund
433,776
Designated - KCA
2,744
Designated - Housing Project
60,000
496,520
Restricted funds
Cycle Scotland
12,373
Big Lottery
-
Gala Fund
8,855
Harperrig Broadband
14,679
Health & Wellbeing
7,853
Heritage Lottery
6,304
Voluntary Sector Gateway
9,927
DTAS
3,990
Scottish Government - Housing grant
451,285
Other
12,124
527,390
TOTAL FUNDS
1,023,910
Comparative net movement in funds, included in the above are a
Unrestricted funds
General fund
Designated - KCA
Restricted funds
Big Lottery
Gala Fund
Harperrig Broadband
Health & Wellbeing
Heritage Lottery
Voluntary Sector Gateway
DTAS
Scottish Government - Housing grant
Other
TOTAL FUNDS		 At 1/9/23
£
433,776
2,744
60,000
496,520
12,373
-
8,855
14,679
7,853
6,304
9,927
3,990
451,285
12,124		 Net
movement
in funds
£
(173,604)
(215)
-
(173,819)
-
6,834
(1,470)
(1,499)
(6,377)
(4,308)
(9,234)
16,566
219,787
617		 Net
movement
in funds
£
(173,604)
(215)
-
(173,819)
-
6,834
(1,470)
(1,499)
(6,377)
(4,308)
(9,234)
16,566
219,787
617		 Transfers
between
funds
£
60,693
-
(60,000)
693
-
-
-
-
1,996
(1,996)
(693)
-
-
-		 At
31/8/24
£
320,865
2,529
-
323,394
12,373
6,834
7,385
13,180
3,472
-
-
20,556
671,072
12,741
747,613
1,071,007
Movement
in funds
£
(173,604)
(215)
(173,819)
6,834
(1,470)
(1,499)
(6,377)
(4,308)
(9,234)
16,566
219,787
617
220,916
47,097
220,916
47,097
s follows:
Incoming
resources
£
8,995
2,370
11,365
20,000
8,800
-
1,950
(4,308)
-
34,500
761,760
7,669
830,371
841,736		 (693)
-
Resources
expended
£
(182,599)
(2,585)
(185,184)
(13,166)
(10,270)
(1,499)
(8,327)
-
(9,234)
(17,934)
(541,973)
(7,052)
830,371
841,736		 (609,455)
(794,639)

continued...

Page 18

Docusign Envelope ID: 65356C59-5B78-4D6D-A37D-D9F20828BB52

Kirknewton Community Development Trust Ltd

Notes to the Financial Statements - continued for the Year Ended 31 August 2025

16.�MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
Designated - KCA
Designated - Housing Project
Restricted funds
Cycle Scotland
Big Lottery
Gala Fund
Harperrig Broadband
Health & Wellbeing
Heritage Lottery
Voluntary Sector Gateway
DTAS
Scottish Government - Housing grant
Other
TOTAL FUNDS		 At 1/9/23
£
433,776
2,744
60,000
496,520
12,373
-
8,855
14,679
7,853
6,304
9,927
3,990
451,285
12,124
527,390
1,023,910		 Net
movement
in funds
£
(234,277)
(973)
-
(235,250)
(4,000)
3,766
(490)
(1,499)
(8,917)
(4,308)
(9,234)
24,872
449,501
1,276
450,967
215,717		 Transfers
between
funds
£
60,693
-
(60,000)
693
-
-
-
-
1,996
(1,996)
(693)
-
-
-
(693)
-		 At
31/8/25
£
260,192
1,771
-
261,963
8,373
3,766
8,365
13,180
932
-
-
28,862
900,786
13,400
977,664
1,239,627

continued...

Page 19

Docusign Envelope ID: 65356C59-5B78-4D6D-A37D-D9F20828BB52

Kirknewton Community Development Trust Ltd

Notes to the Financial Statements - continued for the Year Ended 31 August 2025

16.�MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming
resources
£
Unrestricted funds
General fund
43,043
Designated - KCA
3,502
46,545
Restricted funds
Cycle Scotland
-
Big Lottery
40,000
Gala Fund
18,572
Harperrig Broadband
-
Health & Wellbeing
4,600
Heritage Lottery
(4,308)
Voluntary Sector Gateway
-
DTAS
69,500
Scottish Government - Housing grant
994,701
Other
11,946
1,135,011
TOTAL FUNDS
1,181,556		 Resources
expended
£
(279,376)
(4,475)
(283,851
(4,000)
(36,234)
(19,062)
(1,499)
(13,517)
-
(9,234)
(44,628)
(545,200)
(10,670)
(684,044)
(967,895)		 Gains and
Movement
losses
in funds
£
£
2,056
(234,727)
-
(973)
2,056
(235,250)
-
(4,000)
-
3,766
-
(490)
-
(1,499)
-
(8,917)
-
(4,308)
-
(9,234)
-
24,872
-
449,501
-
1,276
-
450,967
2,056
215,717

17. OTHER FINANCIAL COMMITMENTS

In June 2023, the Trust completed arrangements to enter into a contract with Colorado Construction Ltd for the building of seven affordable housing units. As at the year end the remaining commitments under this contract not included under creditors in the balance sheet was £35,000 (2024 - £73,551).

18. TRANSACTIONS WITH DIRECTORS

None of the directors received any remuneration during the year from the charity (2024 - £nil) and no expenses were reimbursed to the directors (2024 - £nil).

During the year shares totalling £20,342 were donated to the charity by a Trustee (2024-£nil), these are reflected in Fixed Asset Investments and Donations within these financial statements.

continued...

Page 20

Docusign Envelope ID: 65356C59-5B78-4D6D-A37D-D9F20828BB52

Kirknewton Community Development Trust Ltd

Notes to the Financial Statements - continued for the Year Ended 31 August 2025

19. PURPOSES OF RESTRICTED FUNDS

Cycle Scotland was funding received from that organisation that is to meet costs and to run activities and events connected with the promotion of cycling.

During the current year The Big Lottery funding was used to fund a number of events and activities.

Gala Fund - in a previous year an unincorporated association, the Kirknewton Gala Committee voted for dissolution and that its activities be continued under the KCDT umbrella. A new Committee of the Board was established to take over these activities.

The Village improvement monies were received from West Lothian Council. The Town Centre Fund was awarded to KCDT from Scottish Government and local authority following a small consultation using the Place Principle and local stakeholders

Other restricted funds relates to a number of smaller funds provided for a variety of purposes.

Harperrig Broadband was funding received from West Lothian Council in relation to a broadband project at Harperrig, West Lothian.

Health and Wellbeing - Relates to funding from a variety of funders including DTAS Scotland, Foundation Scotland, the Government Wellbeing Fund and the West Lothian Council Third Sector as a contribution to staff salaries, food and fuel for community, senior activities and volunteer expenses, PVG's and newsletters.

Heritage Lottery Fund - was funding for a history project and was used to produce the Kirknewton History comic in a previous year.

Voluntary Sector Gateway - funding for two part time members of staff.

DTAS - funding for the Finance Officer and Funding Officer roles.

Paths For All - funding for a member of staff.

Scottish Government - housing grant. This was a capital grant for the housing project, being the provision of Seven Affordable Houses suitable for assisted living at Hillhouse Park

20. PURPOSE OF DESIGNATED

KCA fund - In a previous year the Kirknewton Community Association (KCA) voted for dissolution of the association, the funds of the KCA being donated to KCDT and the Board designated them to be used towards the previous activities of the KCA being the management, maintenance and operation of the communities' halls and facilities. A new Committee of the Board has been established to take over these activities.

In the previous year a separate designated fund was set up for the housing development. The directors had set aside £60,000 for use on the housing development.

Page 21

Docusign Envelope ID: 65356C59-5B78-4D6D-A37D-D9F20828BB52

Kirknewton Community Development Trust Ltd

Detailed Statement of Financial Activities for the Year Ended 31 August 2025

31/8/25 31/8/24
Unrestricted Restricted Total Total
funds funds funds funds
£ £ £ £
INCOME AND ENDOWMENTS
Donations and legacies
Donations 20,342 750 21,092 1,025
Grants 500 293,029 293,529 819,828
20,842 293,779 314,621 820,853
Other trading activities
Fundraising events - 10,861 10,861 9,418
Investment income
Deposit account interest 1,872 - 1,872 7,249
Charitable activities
Green room hire 250 - 250 230
Hire village hall/pitch 1,913 - 1,913 3,085
Camps Junction rental incomen rental 9,525 - 9,525 -
11,688 - 11,688 3,315
Other income
Other Income 778 - 778 901
Total incoming resources 35,180 304,640 339,820 841,736
EXPENDITURE
Raising donations and legacies
Fundraising Costs - 75 75 134
Charitable activities
Events including gala
Other charitable expenditure
Running costs - Pavilion & Village
Improvements to community facilitieslities
Food & fuel support
Depreciation of tangible fixed assets
Bank loan interest		 -
120
1,103
-
8
4,521		 13,578
1,145
-
4,303
2,216
-		 13,578
1,265
1,103
4,303
2,224
4,521		 10,371
3,928
2,177
4,157
8,327
8,475
39,180 - 39,180 14,319
Other 44,932 21,242 66,174 51,754
Impairment losses for tangible fixed assets
40,616 - 40,616 667,771

This page does not form part of the statutory financial statements

Page 22

Docusign Envelope ID: 65356C59-5B78-4D6D-A37D-D9F20828BB52

Kirknewton Community Development Trust Ltd

Detailed Statement of Financial Activities for the Year Ended 31 August 2025

31/8/25 31/8/24
Unrestricted Restricted Total Total
funds funds funds funds
£ £ £ £
Support Costs
Brought forward - 39,368 39,368 39,590
Pensions - 475 475 581
Insurance 1,488 2,470 3,958 1,552
Light and heat 1,090 357 1,447 1,793
Telephone 1,128 - 1,128 982
Postage and stationery 151 - 151 176
Sundries 1,168 683 1,851 804
Staff training - 634 634 155
Cleaning 733 - 733 851
Property repairs and maintenance 468 - 468 354
Subs & memberships 806 - 806 816
IT Costs 1,142 - 1,142 875
Professional fees - 9,285 9,285 17,211
Bank charges 501 - 501 -
8,675 53,272 61,947 65,740
Governance costs
Auditors' remunerationfor non audit work 4,444 - 4,444 2,040
Auditors' remuneration - - - 7,200
4,444 - 4,444 9,240
Total resources expended 98,667 74,589 173,256 794,639
Net income before gains and losses (63,487) 230,051 166,564 47,097
Realised recognised gains and losses
Realised gains/losses on listed investments 2,056 - 2,056 -
Net income (61,431) 230,051 168,620 47,097

This page does not form part of the statutory financial statements

Page 23