Borders Further Education Trust Annual Report and Financial Statements for The Year Ended 31 March 2025 BORDERS FURTHER EDUCATION TRUST ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2025 Registered Number: SC044668
Borders Further Education Trust Annual Report and Financial Statements for The Year Ended 31 March 2025 TABLE OF CONTENTS TABLE OF CONTENTS.............................................................................................................,............................................................ REFERENCE AND ADMINISTRATION INFORMATION.......................................................................................................................... REPORT OF THE BOARD OF TRUSTEES.............................................................................................................................................. INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF BORDERS FURTHER EDUCATION TRUST................................... STATEMENT OF FINANCIAL ACTIVITES....,.....................,.......................................,...................................................,........................ BALANCE SHEET AS AT 31 MARCH 2025............................................................................................................................................. STATEMENT OF CASH FLOWS,,..........................................................................................................................................................10 NOTES TO THE ACCOUNTS...........,..............................................,......................................................................................................11 SC044668 Page 2
Borders Further Educatlon Trust Annual Report and Financial Statements for The Year Ended 31 March 2025 REFERENCE AND ADMINISTRATION INFORMATION Trustees: Réglstarod Address: Scottlsh Borders Campus Nether Road Netherdal8 GALASHIELS TD13HE Charlty Number: SC044668 Indepondant Examiner: ogg or Riverside House Ladhope Vale GALASHIELS TD1 1BT urn Bank•rs: Bank of Scotland The Mound EDINBURGH EH1 1YZ SC044668 Page 3
Borders Further Education Trust Annual Report and Financial Statements for The Year Ended 31 March 2025 REPORT OF THE BOARD OF TRUSTEES The Board of Trustees presents its annual report and financial statements of the charity for the year ended 31 March 2025, The Borders Further Education Trust (the Trust) is a Scottish Charitable Incorporated Organisation (SCIO), registered in Scotland by the Office of the Scottish Charity Register (OSCR) under number SC044668. Registration was approved by OSCR on 14 February 2014. The financial statements have been prepared in accordance with the accounting policies set out in Note 1 to the accounts and comply with the Charities Accounts (Scotland) Regulations 2006 (as amended) and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland. (FRS 102) (as amended for accounting periods commencing from 1 January 2016) The Trust is a grant-making charity dedicated to advancing further education in the Scottish Borders. Background In October 2010, the Office for National Statistics (ONS) reclassified Scottish incorporated colleges as public bodies. effective from 01 April 2014. A consequence was that colleges ceased to have the ability to accumulate reserves to use across financial years. The Trust was established to receive a donation of college reserves held at 31 March 2014 and any reserves subsequently generated. Organisation Structure The structure of the organisation consists of the charity trustees who are members of the charity and comprise the Board. Borders College is the only other member of the charity. The Trust is a SCIO and as such has a constitution. The constitution of the Trust states that there shall be a maximum of eight trustees. Two of these are 'College Trustees, appointed by Borders College, the remaining 'lndependent TSleeS, are appointed by the Board of the Trust and serve for a term of up to four years after which they are eligible for re-appointment. New appointments to the Board will be made on the basis of candidates being able to demonstrate: a strong interest in Further Education an excellent knowledge ofthe region the most appropriate person irrespective of gender the ability to commit time to the work of the Trust. The Board met on four occasions during the year. SC044668 Page 4
Borders Further Education Trust Annual Report and Financial Statements for The Year Ended 31 March 2025 REPORT OF THE BOARD OF TRUSTEES (CONTINUED) Objectives and Activltles As set out in its constitution, the purpose of the Trust is to advance education, and in particular to enhance learning experience for students engaged in further education in the Scottish Borders, by supporting: the delivery of improved teaching accommodation, facilities andlor equipment., andlor the development of teaching materials; andlor the delivery of courses. To this end the Trust has considered requests for grants from those eligible under the constitution and made awards where these meet the criteria set down. Achievements and Performance The Trust made awards to Borders College which has allowed the College to upgrade the classrooms at the Newtown St Boswells Campus, and to make a major investment in its IT infrastructure including Wireless and Data Network. These grants form part of a wider implementation plan within the College ensuring the best learning experience for every student at Borders College. The agreement between the Trust and Pines Burn Windfarm LLP, whereby the Trust will receive annual grants from the LLP for the purposes of advancing Further Education in the Borders, have progressed and a formal agreement was signed by both parties on 3 March 2025. The Trust is now awaiting receipt of the first grant payment. Financial Revlew Total income for the year was £32.2k (2024 - £3.8k). At 31 March 2025. the charity had total cash balances of £184.6k (2024 - £213.9k}. Grant Making The Trust aims to provide grants to support organisations in their provision of further education and training in the Scottish Borders region. During 2024125 financial year the trustees awarded two grants totaling £200k to local organisations (2024 - £Nil). Reserves Policy As the purpose of the Trust is to disburse funds to projects under a policy of cash in, cash out there is no requirement for the Trust to retain a minimum amount of reserves. However, at the current time, the trustees have agreed that a minimum of £5,000 will be retained in reserves to meet the cost of audit, insurance and ongoing administration. SC044668 Page 5
Borders Further Education Trust Annual Report and Flnancial Slalements for The Year Ended 31 March 2025 REPORT OF THE BOARD OF TRUSTEES (CONTINUED) Rlsks and Uncertalntles Facing the Charity The Trust has minimised the risk and continues to be committed to remaining independent from any of its, related parties. Tru5tees' Responsibllftles in Relatlon to the Financlal Statemenls The charity trustees are responsible for preparing a trustee's annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (UK Generally Accepted Accounting Practice). The law applicable to charities in Scotland requires the charity trustees to prepare financial statements for each year which give a true and fair view of the slate of affairs of the charity and of the incoming resources and application of resources, of the charity for that period. In preparing the financial statements, the trustees are requir8d to: select suitable accounting policies and then apply them consistently observe the methods and principles in the applicable Charities Statement of Recommended Practice (SORP) make judgements and estimates that are reasonable and prudent state whether applicable accountlng standards have been followed, subject to any material departures disclosed and explained in the financial statem8nts 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 proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Accounts (Scotland) Regulations 2006 (as amended), The trustees 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. Approved by the trustees on 23 July 2025 and signed on their behalf by- SC044668 Page 6
Borders Further Education Trust Annual Report and Financial Stalements for The Year Ended 31 March 2D25 INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF BORDERS FURTHER EDUCATION TRUST I report on the accounts of the charity for the year 8nded 31 March 2025 which are set out on pages 8 to 14. Respectlve responslbllltles of trustees and examlner 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 trustees consider that the audit requirement of Regulation 10{1) (a) to (c) of the 2006 Accounts Regulations does nol apply. It is my responsibility to examine the accounts as required under sectlon 44(1) (c> of the Act and to state whether particular matters have Come to my attention. Basis of Independent examiner's statemont My exarnlnation is carried out in accordance with Regulation 11 of the 2006 Accounts Regulatlons. An examination includes a revlew of the accounting records kept by the charity and a comparison of the accounls presented with those records. It also includes consideration of any unusual items or disclosures In the accounts, and seeks explanations from the trustees conceming 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 audlt opinion on the view given by the accounts. Independent examlner's statement In the course of my examination, no matter has come to my attention which gives me reasonable cause to believe that in any material respect th8 requirements: to keep accounting records in accordance wlth Section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulatlons to prepare accounts which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulatlons have not been met, or 2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. JRW Hogg & Thorburn Riverside House Ladhope Vale Galashiels TD1 18T Date.. i1 la L£ SC044668 Page 7
Borders Further Education Trust Annual Report and Financial Statements for The Year Ended 31 March 2025 STATEMENT OF FINANCIAL ACTIVITES Unrestricted Restricted Note Total Total Funds Funds 2025 2024 Income from: Donations and legacies 24,990 24,990 Investments 7,195 7,195 3,759 Total Income 7,195 24.990 32.185 3.759 Expenditure on: Charitable Activities 201,534 201,534 1,473 Total resources expended 201,534 201,534 1,473 Net Incomel(expenditure) for the year (194,339) 24,990 (169.349) 2,286 Fund balanc6s at 1 April 2024 213,621 213,621 211,335 Fund balances at 31 March 2025 19,282 24,990 44,272 213,621 The notes on pages 11 to 14 form part of these financial statements. The Trust has no recognised gains or losses other than the net movement in funds for the year. All income and expenditure transactions derive from continuing activities. SC044668 Page 8
Borders Further Education Trust Annual Report and Financial Statements for The Year Ended 31 March 2025 BALANCE SHEET AS AT 31 MARCH 2025 Unrestricted Restricted Total Total Note Funds Funds 2025 2024 Current assets Cash at bank 184,642 184,642 213.897 Debtors 24.990 24,990 Prepayments and accrued income 84 Total current assets 184,642 24,990 209,632 213,981 Current liablllties.. Credltors: falllng due within one year 165,360 165,360 360 Net current assets 19,282 24,990 44,272 213.621 Total as8•t81086 ¢urront liablllties 19.282 24,990 44,272 213,621 Creditors,. falling due after one year Net assets 19.282 24,990 44,272 213.621 The fund8 of the charity Unrestricted funds 19.282 19,282 213.621 Restricted income funds 24.990 24,990 19,282 24,ggo 44,272 213,621 The notes on pages 11 to 14 form part of these financial statements. Approved by the trustees on 23 July 2025 and signed on their behalf by: SC044668 Page 9
Borders Further Education Trust Annual Report and Financial Statements for The Year Ended 31 March 2025 STATEMENT OF CASH FLOWS Total Total Note 2025 2024 Cash flows from operatlng activlties (36,450) (2,397) Cash flows from Investing activitles Bank interest 7,195 3,759 Net cash used In Investing activitles 7,195 3,759 Net (d6crease)Ilncrease In cash and cash equivalents (29,255) 1,362 Cash and cash equivalent beginning of year 213,897 212.535 Cash and cash equivalents at end of year 12 184,642 213,897 SC044668 Page 10
Borders Furiher Education Trust Annual Report and Financial Statements for The Year Ended 31 March 2025 NOTES TO THE ACCOUNTS Accountlng Policles Charity information The continuing activity of the Trust is to provide grant funding lo advance the public participation in education - all within Scotland. The Trust is incorporated in Scotland and its registered number is SC044668. The Trust's registered address is Scottish Borders Campus, Nether Road, Galashiels TD13HE. a) Basls of preparation The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or Iransaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice.. Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) issued on 16 July 2014, the Charities and Trustee Investment (Scotland) Act 2005 and the Charity Accounts (Scotland) Regulations 2006 (as amended). b) Funds structure Unrestricted funds comprise those funds which the trustees are free to use for any purpose in furtherance of the charitable objectives. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donor or trust deed. c) Income recognition All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. d) Grants and donations Grants and donations are only included in the Statement of Financial Activities when the charity has unconditional entitlement to them. •) Expenditure recognltlon Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to the expenditure. it is probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis. All expenses. including support costs and governance costs. are allocated or apportioned to the applicable expenditure headings. Grants payable Grants payable are payments to third parties in the furtherance of the charitable objectives of the Trust. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive a one- year or multi-year grant. Grant awards that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled condition attached to that grant is outside of the control of the Trust. SC044668 Page11
Borders Further Education Trust Annual Report and Financial Statements for The Year Ended 31 March 2025 g) Irrecoverable VAT Irrecoverable Value Added Tax (VAT) is charged against the expenditure heading for which it was incurred. h) Charitable activitles Costs of charitable activities include grants made, support costs and governance costs. SC044668 Page 12
Borders Further Education Trust Annual Report and Financial Statements for The Year Ended 31 March 2025 Note 2025 2024 2. Analysis of charitable activities Grants Made 200,000 Support costs 1,174 1,113 Governance costs 360 360 Total 201.534 1,473 Independent Examiner's remuneration The Independent Examiner's fee was £360 (2024 - £360). Debtors Amounts falling due wlthin one year Donations receivable 24,990 Total 24,990 Creditors Amounts falling due wlthln one year Grants payable 165,000 Other creditors 360 360 Total 165,360 360 Unrestricted Funds Restricted Funds Movement In Funds Total Balance brought forward 213.621 213,621 Income 7,195 24,990 32,185 Expenditure (201.534) 0 (201,534) Balance carried forward 19,282 24.990 44,272 SC044668 Page 13
Borders Further Education Trust Annual Report and Financial Statements for The Year Ended 31 March 2025 Related Party Transactlons During the year. the Trust obtained administrative services amounting to £780 (2024 - £780) from Borders College. These services were purchased on an arm's length basis. A grant of £35k was paid out to Borders College during the year (2024 - £Ok). There were commitments of £165k outstanding to the College as at 31 March 2025 (2024 £Ok). Commltments The Trust has made no commitments after the reporting period. 9. Contingencies The Trust had no contingencies at the Balance Sheet date. l O. Guarantees The Trust has given no guarantees or other indemnities. 11. Reconciliation of net movement in funds to net cash used in operating activities. 2025 2024 Net incom81(expenditure) for the reporting year (169,349) 2.286 Adjustments for.. Investment income recognised in the statement of financial activities (7.195) (3,759) Movements in working capital: increasel(decrease) in creditors Movement in working capital.. decreasel(increase) in debtors 165,000 (840) {24,906) (84) Net cash used In operating activities {36,450) (2,397) 12. Cash and cash equivalents 2025 2024 Cash at bank and in hand 184,642 213,897 184,642 213,897 13. Trustees remuneratlon and expenses None of the Trustees (or any person connected with them) received any remuneration or expenses during the year. SC044668 Page 14