Scottish Charity Number: SC043026
Highlands & Islands Environment Foundation (Scottish Charitable Incorporated Organisation)
Trustee report and financial statements
for the year ended
31st December 2024
Wenn Townsend
Chartered Accountants
Oxford
Highlands & Islands Environment Foundation
Contents
| Reference and administrative information | 1 |
|---|---|
| Trustees’ report | 2 - 3 |
| Statement of trustees’ responsibilities | 4 |
| Independent examiner’s report | 5 |
| Statement of financial activities | 6 |
| Balance sheet | 7 |
| Statement of cash flows | 8 |
| Notes to the financial statements | 9 - 14 |
Highlands & Islands Environment Foundation Reference and administrative information for the year ended 31st December 2024 Principal office: Kinlochaline Morvem Oban PA80 SUZ Trustees.. Bankers: The Co-operative Bank plc 29 Gordon Street Glasgow G13PF Independent examiner..
Highlands & Islands Environment Foundation
Trustees’ report for the year ended 31st December 2024
The trustees have pleasure in presenting their report, together with the financial statements and the Independent Examiner’s report, for the year ended 31st December 2024.
Structure, governance and management
Constitution
The charity is a Scottish Charitable Incorporated Organisation (SCIO). It is governed by its Constitution. The charity was granted charitable status by OSCR on 22nd March 2012.
Appointment of trustees
The charity trustees who are the members of the SCIO, make up the Board of Trustees. Under the Constitution there must be a minimum of 3 trustees and a maximum of 5. Additional and future trustees are elected by the Board to serve for a three-year term but are then eligible for reappointment by the trustees at the next Board meeting.
With regards to training of trustees, all of the trustees already have significant experience of serving on Boards of other organisations in related fields. However, further training will be provided to the trustees as and when required. The position of the chairperson is elected by the Board of Trustees.
Management
The trustees are responsible for the direction and governance of the charity. The Executive Director, carries out the day-to-day management of the charity.
Objectives and activities
Charitable purposes
The Highlands & Islands Environment Foundation has been established with the following charitable purposes:
-
To advance environmental protection and improvement, through the conservation, protection and improvement of the physical and natural environment within Scotland, in particular but not exclusively by monitoring and protecting natural habitats and biodiversity, in the land and in the sea and establishing marine protected areas; and
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To advance education, with a particular focus on education relating to conserving, protecting and improving the physical and natural environment of Scotland through the dissemination of information about conservation, protection and improvement activities including waste, water and energy usage.
Activities and achievements
Fifteen grants totalling £173,297 (2023: twelve totalling £176,924) were awarded during the year to support community-led, grassroots environmental projects in line with our charitable objectives. Projects were supported in fresh water, inshore marine, montane and woodland habitats.
A mixture of online and in-person events took place throughout the year, including participation in the Conservation Collective (CC) Global Gathering, HIEF being an affiliate of the CC. HIEF hosted a press tour, taking nine journalists round seven HIEF grantee projects to learn more about the challenges being addressed and to meet the people taking action. There were also visits to see grantee projects on the Isle of Bute, the Isle of Arran, on Mull, in Gairloch, at Arnisdale, Kyle of Lochalsh, Oban and Dunstaffnage.
joined the staff on a full-time basis as Project Co-ordinator on Monday, 8[th] July 2024. His primary areas of responsibility are marketing and grantee liaison but he also assists with fundraising and grant administration.
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Highlands & Islands Environment Foundation
Trustees’ report (continued) for the year ended 31st December 2024
Plans for the future
Our 2025 priorities are to expand the number and scope of grants awarded, with particular reference to exploring the creation of a new, parallel grants stream around individual ‘themed focus areas’ on a more proactive basis. HIEF will work with relevant stakeholders to identify gaps where additional projects would lever the greatest impact and then secure the necessary funding to implement those projects. We will continue to diversify income streams for the foundation, with an increased focus on obtaining corporate support. At the same time, we will expand our portfolio of case studies and marketing materials to raise awareness of HIEF to encourage increased grant applications and to boost the recruitment and retention of donors.
Statement on risk
The trustees continually review and assess the major strategic, operational and financial risks to which the charity is exposed. From this review, the trustees continue to update and establish procedures to mitigate those risks which are identified as a result of this review. The main risks that have been identified in this review are:
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possible reputational risk in the event of a serious accident connected with outdoor activities supported by a grant from the charity; and
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reduction or loss of financial support.
Financial review
The statement of financial activities on page 6 reflects a surplus of £7,741 (2023: deficit of £9,730). The total fund balance carried forward is £64,191 (2023: £56,450).
Reserves policy
Unrestricted funds represent the general funds which the trustees are free to use in accordance with the organisation’s charitable objectives.
The trustees confirm that in their opinion the assets of the organisation are available and adequate to fulfil current obligations.
Trustees have agreed a reserves policy to sustain the charity without creating a deficit.
Total reserves at 31st December 2024 were £64,191 (2023: £56,450) of which £60,191 were unrestricted (2023: £52,450).
22
Agreed by the trustees on ……September 2025 and signed on their behalf by:
Chairperson
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Highlands & Islands Environment Foundation
Trustees’ report (continued) for the year ended 31st December 2024
Statement of trustees' responsibilities
The Trustees are responsible for preparing the annual report and the financial statements in accordance with applicable Law and United Kingdom Generally Accepted Accounting Practice (UK GAAP). Under the SCIO's Constitution, the Trustees are required to ensure that full and punctual accounts are prepared in accordance with the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). The Trustees also have regard to the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" issued in 2016. Under this legislation, the Trustees are required to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the SCIO and of the incoming resources and application of resources of the charity for that period.
In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles of the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements; and
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• prepare the financial statements on a going concern basis unless it is inappropriate to assume the SCIO will continue in operation.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the SCIO and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Constitution. 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.
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Report of the Independent Examiner to the Trustees of the Highland & Islands Environment Foundation SCIO
I report on the financial statements of the charity for the year ended 31st December 2024 which are set out on pages 6 to 13.
This report is made to the trustees, as a body, in accordance with the terms of my engagement. My work has been undertaken to enable me to report my opinion set out below and for no other purpose. To the fullest extent permitted by law I do not accept or assume responsibility to anyone other than the trustees, as a body, for my work or for this report.
Respective responsibilities of trustees and examiner
The charity's trustees are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustees Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended).
The charity trustees consider that the audit requirement of regulation 10(1)(d) 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 Independent Examiner's Statement
My examination is carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations (as amended). An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements and seeks explanations from the trustees concerning any such matters. The procedures 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 the course of my examination, no matter has come to my attention:
-
1) which gives me reasonable cause to believe that in any material respect the requirements:
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to keep accounting records in accordance with Section 44(1)(a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and
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to prepare accounts which accord with the accounting records and comply with Regulation 9 of the 2006 Accounts Regulations;
have not been met, or
2) which, in my opinion, attention should be drawn in order to enable proper understanding of the financial statements to be reached.
22nd ………September 2025
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Highlands & Islands Environment Foundation
Statement of financial activities (incorporating income and expenditure account) for the year ended 31st December 2024
| Note | Restricted | Unrestricted | Total | Restricted | Unrestricted | Total | |
|---|---|---|---|---|---|---|---|
| 2024 | 2024 | 2024 | 2023 | 2023 | 2023 | ||
| £ | £ | £ | £ | £ | £ | ||
| Income from | |||||||
| Donations | 3 | 110,244 | 166,100 | 276,344 | 72,500 | 151,690 | 224,190 |
| ───── | ───── | ───── | ───── | ───── | ───── | ||
| Total income | 110,244 | 166,100 | 276,344 | 72,500 | 151,690 | 224,190 | |
| ───── | ───── | ───── | ───── | ───── | ───── | ||
| Expenditure on: | |||||||
| Raising funds | 4 | 12,000 | 35,037 | 45,037 | - | 24,529 | 24,529 |
| Charitable activities | 5 | 98,244 | 125,322 | 223,566 | 72,500 | 136,891 | 209,391 |
| ───── | ───── | ───── | ───── | ───── | ───── | ||
| Total expenditure | 110,244 | 158,359 | 268,603 | 72,500 | 161,420 | 233,920 | |
| ───── | ───── | ───── | ───── | ───── | ───── | ||
| Net income/(expenditure) before transfers | - | 7,741 | 7,741 | - | (9,730) | (9,730) | |
| Transfers between funds | 11 | - | - | - | - | - | - |
| Net movement in funds | - | 7,741 | 7,741 | - | (9,730) | (9,730) | |
| Total funds brought forward | 4,000 | 52,450 | 56,450 | 4,000 | 62,180 | 66,180 | |
| ───── | ───── | ───── | ───── | ───── | ───── | ||
| Total funds carried forward | 11 | 4,000 | 60,191 | 64,191 | 4,000 | 52,450 | 56,450 |
| ═════ | ═════ | ═════ | ═════ | ═════ | ═════ |
All of the charity’s activities are continuing.
The notes on pages 9 to 14 form an integral part of the financial statements
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Highlands & Islands Environment Foundation
Balance sheet As at 31st December 2024
| 2024 | 2023 | ||
|---|---|---|---|
| Note | £ | £ | |
| Current assets | |||
| Debtors | 9 | 5,000 | 5,000 |
| Cash at bank | 165,557 | 154,010 | |
| ───── | ───── | ||
| 170,557 | 159,010 | ||
| Current liabilities | |||
| Creditors falling due within one year | 10 | (106,366) | (102,560) |
| ───── | ───── | ||
| Net current assets | 64,191 | 56,450 | |
| ───── | ───── | ||
| Net assets | 64,191 | 56,450 | |
| ═════ | ═════ | ||
| Funds | |||
| Unrestricted funds | 11 | 60,191 | 52,450 |
| Restricted funds | 11 | 4,000 | 4,000 |
| ───── | ───── | ||
| 64,191 | 56,450 | ||
| ═════ | ═════ |
22 The financial statements were approved by the trustees on ……September 2025 and signed on their behalf by:
Chairperson
The notes on pages 9 to 14 form an integral part of the financial statements
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Highlands & Islands Environment Foundation
Statement of cash flows At 31 December 2024
| 2024 | 2023 | |
|---|---|---|
| £ | £ | |
| Cash flows from operating activities | ||
| Net income | 7,741 | (9,730) |
| Increase/(decrease) in creditors | 3,806 | 72,399 |
| (Increase)/decrease in debtors | - | (5,000) |
| ───── | ───── | |
| Cash provided by/(used in) operating activities | 11,547 | 57,669 |
| ───── | ───── | |
| Total cash and cash equivalents at start of year | 154,010 | 96,341 |
| ───── | ───── | |
| Total cash and cash equivalents at end of year | 165,557 | 154,010 |
| ═════ | ═════ | |
| Cash and cash equivalents comprise: | ||
| Cash at bank | 165,557 | 154,010 |
| ═════ | ═════ |
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Highlands & Islands Environment Foundation
Notes to the Financial Statements for the year ended 31st December 2024
1. Incorporated Organisation Constitution
Highlands & Islands Environment Foundation SCIO is a Scottish Charitable Incorporated Organisation that is governed by a Constitution.
2. Accounting policies
Accounting convention
The financial statements have been prepared on a going concern basis under the historical cost convention and are in accordance with Applicable Accounting Standards, the Statement of Recommended Practice FRS102 (SORP FRS 102) "Accounting and Reporting by Charities", the Charities Act 2011, The Charities and Trustees Investment (Scotland) Act 2005, The Charities Accounts (Scotland) Regulations 2006 (as amended), the Charities Act 2011 and in accordance with the Financial Reporting Standard 102 FRS (FRS 102). The financial statements are prepared in Sterling, which is the functional currency of the Organisation. Monetary amounts in these financial statements are rounded to the nearest pound.
Critical accounting estimates and judgements
In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Going concern
These financial statements have been prepared on a going concern basis which assumes that the charity will continue its operations. There are no material uncertainties that exist or material changes in the way the charity operated and the Trustees consider it appropriate to prepare financial statements on a going concern basis.
Incoming resources
All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.
For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.
Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the charity, for example, the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure. No amount is included in the financial statements for volunteer time in line with the SORP. Further detail is given in the Trustees’ Annual Report.
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Highlands & Islands Environment Foundation
Notes to the Financial Statements (continued) for the year ended 31st December 2024
2. Accounting policies (continued)
Expenditure
Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. All costs have been directly attributed to one of the functional categories of expenditure in the Statement of Financial Activities. Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements. The charity is not registered for VAT and accordingly expenditure is shown gross.
Cash
Cash at bank includes cash and highly liquid short-term investments until a maturity of three months or less from the date of acquisition of the deposit or similar account.
Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in a 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.
Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
Funds
All of the charity's unrestricted funds are available for its charitable purposes at the discretion of the trustees. Restricted funds are those funds which can only be used for specific purposes as specified by the donor or when the funds have been received for a specific purpose.
Taxation
The incorporated association is recognised by HMRC as a charity and no charge for taxation arises on the results of the period.
Employee benefits
When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.
The charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.
3. Charitable income
| Charitable income | ||
|---|---|---|
| 2024 | 2023 | |
| £ | £ | |
| Donations | 276,344 | 219,790 |
| Gift aid recoverable | - | 4,400 |
| ───── | ───── | |
| 276,344 | 224,190 | |
| ═════ | ═════ |
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Highlands & Islands Environment Foundation
Notes to the Financial Statements (continued) for the year ended 31st December 2024
4. Expenditure on raising funds
| 2024 | 2023 | ||
|---|---|---|---|
| £ | £ | ||
| Wages and salaries (including pension) | 33,170 | 24,529 | |
| Events | 11,867 | - | |
| ═════ | ═════ | ||
| 5. | Charitable activities | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Grants awarded | 173,297 | 176,924 | |
| Marketing | 2,599 | 2,733 | |
| Sundry expenses | 326 | 536 | |
| Travel and subsistence | 5,135 | 2,697 | |
| Support costs | 37,170 | 24,529 | |
| Licences / IT support | 3,115 | - | |
| Governance costs | 1,924 | 1,972 | |
| ───── | ───── | ||
| 223,566 | 209,391 | ||
| ═════ | ═════ | ||
| 6. | Support costs | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Wages and salaries (including pension) | 37,170 | 24,529 | |
| ═════ | ═════ | ||
| 7. | Governance costs | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Independent examiner’s fees | 1,260 | 1,194 | |
| Payroll fees | 414 | 528 | |
| Affiliation fees | 250 | 250 | |
| ───── | ───── | ||
| 1,924 | 1,972 | ||
| ═════ | ═════ |
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Highlands & Islands Environment Foundation
Notes to the Financial Statements (continued) for the year ended 31st December 2024
8. Grants awarded
| 8. | Grants awarded | ||
|---|---|---|---|
| 2024 | 2023 | ||
| £ | £ | ||
| Glenelg Peninsula Biodiversity Mapping | 7,600 | - | |
| Restoring Nature at Ardura | 11,915 | - | |
| Waterfall Woods Rehabilitation | 5,000 | - | |
| Marine Litter Island Drone Survey | 7,500 | - | |
| Glen Urquhart Farm Cluster | 15,000 | - | |
| Salmon Stream Nutrition Restoration Wester Ross Fisheries Trust | 6,833 | - | |
| Bute Community Forest Ranger | 10,000 | - | |
| Static Gear Reserves | 10,000 | - | |
| Amphibian and Reptile Crofter Guidance | 8,952 | - | |
| Lunan Burn Wildlife Cluster | 7,128 | - | |
| Argyll Economic Assessment | 15,000 | - | |
| Skye and Localsh Marine Life Reserve | 7,000 | - | |
| Great Yellow Bumble Bees | 10,000 | - | |
| Industry Analysis to Inform Policy | 30,000 | - | |
| Baron’s Haugh | 5,000 | - | |
| Scotland’s Fishing and Aquaculture Pollution Problem | 16,369 | - | |
| OMMRI - Harbour Porpoise Aggregation Study | - | 15,000 | |
| CCN - Mapping and Modelling Resources Phase 3 | - | 15,000 | |
| Wildfish - Smartrivers | - | 7,500 | |
| Sylvestris – Moray Farm Cluster | - | 15,000 | |
| Beaches and Marine Litter Project | - | 10,000 | |
| Blue Hope Alliance Phase 2 | - | 15,000 | |
| CAOLAS – Morven Marine Biodiversity Study | - | 15,000 | |
| HWDT – 30 years Minke Whale research in the Hebrides | - | 12,000 | |
| Beachwatch – Highlands and Islands | - | 30,000 | |
| Plock Pilot – outdoor school of the environment | - | 15,000 | |
| Scotland’s Red Snows | - | 14,924 | |
| Riverwoods Tree Nursery | - | 12,500 | |
| ───── | ───── | ||
| 173,297 | 176,924 | ||
| ═════ | ═════ | ||
| 9. | Debtors | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Amounts due back from grantees | 5,000 | 5,000 | |
| ═════ | ═════ | ||
| 10. | Creditors | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Grants payable | 104,449 | 100,866 | |
| Accruals | 1,401 | 1,331 | |
| Other creditors | 516 | 363 | |
| ───── | ───── | ||
| 106,366 | 102,560 | ||
| ═════ | ═════ |
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Highlands & Islands Environment Foundation
Notes to the Financial Statements (continued) for the year ended 31st December 2024
11. Funds
| Funds | |||||
|---|---|---|---|---|---|
| Balance at | Balance at | ||||
| 1st January | 31st December | ||||
| 2024 | Income | Expenditure | Transfers | 2024 |
|
| £ | £ | £ | £ | £ |
|
| Restricted funds: | |||||
| Matched Donations Fund | - | 110,244 | (110,244) | - | - |
| Spey Partnership Project | 4,000 | - | - | - | 4,000 |
| ───── | ───── | ───── | ───── | ───── |
|
| 4,000 | 110,244 | (110,244) | - | 4,000 |
|
| Unrestricted funds: | |||||
| General fund | 52,450 | 166,100 | (158,359) | - | 60,191 |
| ───── | ───── | ───── | ───── | ───── |
|
| Total funds at 31st December 2023 | 52,450 |
276,344 | (268,603) | - | 64,191 |
| ═════ | ═════ | ═════ | ═════ | ═════ |
|
| Balance at | Balance at | ||||
| 1st January | 31st December | ||||
| 2023 | Income | Expenditure | Transfers | 2023 |
|
| £ | £ | £ | £ | £ |
|
| Restricted funds: | |||||
| Matched Donations Fund | - | 72,500 | (72,500) | - | - |
| Spey Partnership Project | 4,000 | - | - | - | 4,000 |
| ───── | ───── | ───── | ───── | ───── |
|
| 4,000 | 72,500 | (72,500) | - | 4,000 |
|
| Unrestricted funds: | |||||
| General fund | 62,180 | 151,190 | (161,420) | - | 52,450 |
| ───── | ───── | ───── | ───── | ───── |
|
| Total funds at 31st December 2023 | 66,180 |
224,190 | (233,920) | - | 56,450 |
| ═════ | ═════ | ═════ | ═════ | ═════ |
Restricted funds:
Spey Partnership Project: the aim of this project is to create an alliance of everyone who loves/has an interest in the River Spey to enable them to work together to restore the River Spey’s local ecosystem along its entire length. HIEF was approached to co-ordinate community-led projects with larger catchment scale work & to collate donations from key individuals & local businesses to pay for them.
Matched Donations Fund: this fund represents monies donated to the charity for specific ongoing projects that the charity has itself made awards to in the period.
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Highlands & Islands Environment Foundation
Notes to the Financial Statements (continued) for the year ended 31st December 2024
12. Remuneration of trustees and staff
No employees received emoluments exceeding £60,000 in the current or preceding year.
The trustees neither received nor waived any remuneration during the year (2023: £Nil).
The average number of full-time equivalent employees in the year was:
| 2024 | 2023 | |
|---|---|---|
| No. | No. | |
| Administration | 1.5 | 1 |
| ═════ | ═════ |
13. Related party transactions
During the year, four trustees gave unrestricted donations to the organisation totalling £20,200 (2023: two for £10,000). A further £15,000 was donated by one trustee for a specific purpose, being for a Restricted Project Co-ordinator. (2024: £3,500 being towards the mapping and modelling resources grant project).
There were no other related party transactions in the year.
14. Ultimate controlling party
The organisation is controlled by the trustees.
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