REGISTERED CHARITY NUMBER: SC047345 Report of the Trustees 2nd Financial Statements for the Year Ended 31 March 2025 for John O, Groats Mill Trust (8 Scottish Charitable Incorpordted Organisation) Reid & Frdser Audit Ltd Statutory Auditors Chartered Accountants 15 Princes Street Thurso Caithness KW14 7BQ
John O, Groats Mill Trust (a Scottish Charitable Incorpornted Organisation} Contents of the Financial Statements ror the Year Ended 31 March 2025 Page Chairman's Report Report of Ihe Trustees Report of the Independent Auditors Statement of Financial Activities Balance Sheet 10 Cash Flow Statement Noles to the Cash Flow Statement 12 Notes to the Financial Statements 13 to 20 Detailed Statement of Financi81 Activities 21 to 22
John O, Groats Mill Trust (a Scottish Charitable Incorporated Organisation) Chairnian's Report for the Year Ended 31 March 2025 Over the financial year to March 2025. the Trust has come a long way in achieving its ambition of saving its historic mill to provide the facility the community behind the Trust wanl. Though ]1] a building site at the end of the year it was already secure and almost ready for hand over. The year had been largely focused on this with community involvement frnstratinbcwly limited. Since the end of the year, the community now has access. The response has been ovenvhelmingly positive with hundred5 of people accessing li for a lar(ve rantse of activities. social and educational. This is ¢xactly in linc with the Trust's raisin d¢tr¢. Volunteers have been an important aspect of the Trnst's plans. The Trust's elected Board uive freety of their time. In addition a good number of volunteers are on hand to help as and when required. This has been limited by the building site status of the Mill over the past year. But since being open to the comrnunity the opportunities for volunteering are becoming more appareni and with that the interest in being involved. The priority into the immediate future is to ensure the financial security of the organisation. providing facilities which have a positive effect on local residents and on visilors to the area. -the aim of providing facilities lo enrich local lives at minimum cosi in an area of social isolaiion wilh financial challenges is the priority. Pagc I
John O, Groats Mill Trusl (a Scottish Charitable Incorporated Organisation) Report of the Trustees for the Year Ended 31 Mareh 2025 The trustees present their report with ihe financial statements of the charity for the year ended 31 March 2025. The trustees have adopted the provisions of Accounling and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Siandard applicable in the UK and Republic of Ireland (FRS 102) (effective l January ?019). OBJECTIVES AND ACTIVITIES Objectives and aims To advance education by providing a visitor attraction. int¢rpretstioD and exhibition spaces. meeting and training facilities for local groups and encouraging the development of local training and infomlal educational provision using the John O'Groats Mill and associated buildings. To support local heritage by engaging in activities in particular as they relate to the Mill. The aims of the Trust remain unchanged from founding concepts. though its papers were updated at the AGM in February to reflect the current position of ownership of ihe Mill ther than, as was slaled in original document, the investigation towards acquiring and developing the properties. The development of the Mill at the financial year ending March 2025 had yet to further the aims of the Trust, but it had gone a long way to providing the facilitie5 to enable the Trust to develop its ambitions. Since the year end the Tnjst now h&$ possession of the site and a solid start lo its future as a visitor attraction for guests to the area has been made. Use as a stimulating facility for visitors and local is highly rated in feedback. The facility is becoming popular as a meeting place for a range of groups and organisations. These range from children focused fun events using the building and its wider amenities, through to presentations and social events. Significant aetivilies Through the year there were limited opportunities to focus on the long terni pury)oses of the Trust because in effect the Mill was a building site under the control of the main conlrdctor. There were a few occasions when the comniunity were invited in to view and discuss progress.{Doors Open Days- Trdditional skills liaison with local college. pond dipping events. bat watching). Though li is difficult to come up wilh hard statistical evidence, all of these events were very popular and people, both local and visitors were very engaged and enthused. Since the year end the Trust has built on this and its first few months of being open to the community have been promising in the variety of sectors making us¢ of the Mill. The efforts put in to ensuring the building 15 accessible to all have been much commenled on, both verbally but also in local press articles. The effort to involve the community focused largely on social media and its feedback. In addition, the Mill Trust went out into the community, being a visible presence in any community events { Highland Games, Agricultural shows etc.) Trustees and volunteers were on hand to answer questions and receive feedback. Invariably. feedback was positive and there was a huge amount of interest and enthusiasm for the Trust's ambilions. A lot of effort has been put into keeping the community up to date with progress. The Mill's social media page has been a very popular forum leading to much positive feedback. Since the year end a huge effort has been made to run a series of events encouraging all sectors of the community to get involved. explore and enjoy ihe facility we now have. In preparation for tran51tion to visitor and community hub. a manager was apFM)inted in January to enable time for them to develop their role prior to site handover. ACHIEVEMENTS AND PERFORMANCE Charitable activities A summary of the activities of the charity for the year being reported is contained in the Chair's Teport and within the 'Significant activities" section of the report.. Page 2
John O, Groats Mill Trust {a Scottish Charitable Ineorporated Organisation) Report of the Trustees for the Year Ended 31 Mareh 2025 FINANCIAL REVIEW Financial position The results for the year are reported in the fmancial statements. The fmancial year to March 2025 was dominated by the building work on the Mill. Costs associated with this were within budget. But there was an impact on the Trust's ability to raise income. The cottages, nornially available for holiday let had to be closed for extended periods with the inevitable loss in revenue. Th¢ continuation of the restordtion project was a planned and funded evenl so th¢ fmancial ¢ffect was as expected. i.e. significant sums paid out to contractors and drawn down from grant funders. As the project remained on budget, it should have no adverse affects on the tUre financial position of the Trust and the outcome of the works will be to leav¢ th¢ Trust with a sustainabl¢ source of income for the future. Reserves policy The policy of the Trust is to maintain an appropriale amount of generdl reserves to meet day to day running costs in the short frmi. Total reserves held at 31 March 2025 were £4.663.112 comprising £206,448 of unrestricted reserve5 and £4.456,664 of restricted reserves. FUTURE PLANS Delayed completion, often due lo geographical isolation, affected the new manager of the site in her ability to prepare for the coming Season, especially as we could not guarantee or advertise opening in advance. This will also affect ihe following financial year 2025126. Despile this. having experienced a few months of being available to the community Ihere are good reasons lo be positive about the ability of the Trust and its facilities lo fulfill its ainbitions. The year 2025126 will be one of consolidation. The aim is lo build on our existing plans lo encourage use of the facility, and ensure the activities collectively benefit the community and visitors, bul also ensure a financially secure background. We want to learn from the current trading aclivilies and implement any changes necessary. A measure of success would be increased revenue. relurning customers and great feedback within the community and wider population. STRUCTURE, GOVERNANCE AND MANAGEMENT Coverning document The Trust was fornied by constitution on 17 January 2017 a5 a Scottish Charitable Incorporated Organisation Reeruitment and appointment of new trustees The Trust is made up of members and a few friends (this is something we will develop). Only members have a vote at an AGM.To be a member, one must reside in the area of benefit which is the community council area. This ensures that control will always Stay within the local cornmunity. Members elect the Trustees (the Board). There are up to I l Board members and a minimum of 6. Trustees are elected for a three year terni with a third (4.4,3) standing down each year. They can be re-elected. The Trustees Ihen elecl office bearers from within their numbers. The Trustees can co-opt an additional individual to sit on the Board if thai person has skills or expertise needed by the Board. That COvOPted member stands down at next AGM. The directors are not remunerated for their services. Deeision making The Board of Trustees makes all decisions on running the Trust until the next AGM. The Board of Trustee5 makes decisions at Board meetings held approximately monthly. On a day to day basis the Chair, Treasurer and Secretary make decisions on general running issues. Major decisions must be brought to a Board meeting where a majority vote would prevail. Page 3
John O, Groats Mill Trust (a Seottish Charitable Incorporated Organisalion) Report of the Trustees for the Year Ended 31 March 2025 STRUCTURE, GOVERNANCE AND MANAGEMENT Induction and training of new trustees New Triistees are oiven tuilioniexplanation of the Trusvs aims, its documentation etc. by the Chair and Treasurer or a Iruslee nominaied by (hem. Any prospective truslee should haye tuiti( and training {withoul disclosure of confidenlial info) prior to el¢clion. Risk management The tntee5 have a duty to identify and review th¢ risks to which the charity is exposed and to ensure appropriate controls are in place Io Provide reasonable assurance againsi fraud and error. The main financial risk during this perlod were changes to the limeframe and cost of works. This ts usual for a construction project and a risk register wa5 kept by the principal designer. The main contractor worked with the Trust lo mitigate these risks such as moving some items of work forward in ihe plan, when there were oiher parts the), could not get on with due to delays. Overall costs continued to fall within the expected budget for the project. Cashflow was occasionally tricky as the Trust relied on grant funding being paid oui. bul again by working closely with the contraciors. the project kepi moving forward. REFERENCE AND ADMINISTRATIVE DETAILS Registered Charitv number SC047345 Prineipil qddreqs Auditurs Reid & Frd5er Audit Ltd Statutory Auditors Chartered Accountants 15 Princes Street 'I'hurso Caithness KW14 7BQ Bankers Olrig Street Thurso KW14 7BL Page 4
Johm O, Groats Mill Trust (8 Scotlish Charitable Incorporated Organisation) Report ofthe Trustees for the Year Ended 31 March 2025 STATEMENT OF TRUSTEES, RESPONSIBILITIES The trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United KingdoTn Accounting Standards (United Kingdom Generally Accepted Accounting Prn¢tice) including Financial Reporting Standard 102 "The Financial Reponing Standard applicable in the UK and Republic of Irelaiid Charity law requires the trustees to prepar¢ fmancial statements for each financial year. Under that law, the trustees have elected io prepare the financial siaiements in accordance with Unit¢d Kingdom Generally Accepied Accounting Practice (United Kingdom Accountinu Standards and applicable law). Under charity law the truste¢s must nol approve the financial statejneiits unless ihey are satisfied thai they give a true and fair view of the state of affairs of the charity and of the incoming resource5 and application of resources, includuig the income and expenditure, of the charity for that p¢riod. In preparing those f]nancial Statements, the trustees are required lo select suitable accounting policies and then apply them consistenily. observe the methods and principles in the Charities SORP. make Judgemenls and eslimales that are reasonable and prudenl. state whether applicable accounting standards have been followed, subject lo any material departures disclosed and explained in ihe financial siatements- prepare the financial staiemenis on the going concern basis unless it is inappropriate to presume ihat the chariry will coi)tinue in business. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any tin)e the financial p05ilion of the charity and to enable Ihcm lo ensure that the financial statcments comply wilh the Charities and Trustee Invesiment (Scotland) Aci 2005 and The Charities Accounts (Scoiland) Regulalions 2006 {as ainended). 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. Approved by order of the board of trustees on ..Il. and signed on its behalf by.. Page 5
Report of the Independent Auditors to the Trustees of John O, Groats Mill Trust Opinion We have audited the financial statements of John O, Groats Mill Trust (the 'charity') for the year ended 31 March 2025 which comprise the Statement of Financial Activities. the Balance Sheet, the Cash Flow Statement and notes to the fanCIal statements, including a summary of significant accounting policies. The financial Teportints framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accountints Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland.. In our opinion the financial statements- give a true and fair view of the slate of the charity's affairs as at 31 March 2025 and of its incoming resources and application of resources, for the year then ended. have been properly prepared in accordance with United Ktngdom Generally Accepted Accounting Practice, tncluding Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland and have been prepared in accordance wilh the requiremenls of the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 8 of the Charlties Accounts (Scotland) Regulaiions 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibililies under those standards are further described in the Auditors, responsibilities for the audit of the rinancial statements section of our report. We are independent of the charlty in accordance with the ethical requirements that are relevant to our audit of the fmancial statements in the UK, including the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfornied, we have not identified any material uncertainties relaling to events or conditions that, individually or collectively, may cast significani doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other information The trustees are responsible for the other inforniation. The other inforniation comprises the infomiation included in the Annual Report, other than the fancIal statements and our Report of the Independenl Auditors thereon. Our opinion on the financial statements does not cover the other inforniation and. except to the exlent oiherwise explicitly slated in our report. we do not express any forni of assurance conclusion Ihereon. In connection with our audit of the financial statemeT]ts. our responsibility is to read the other inforniation and, in doing so, consider whether the other information is materially inconsistent with the financial stateinents or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to deterTnine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have perfornied, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have noihing to report in this regard. Matters on which Ive are required to report by exception We have nothing to report in respect of ihe following matters where ihe Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion= the inforniation given in the Report of the Trustees is inconsistent in any malerial respect with the financial statements. or proper accounting record5 have not been kept; or the financial statements are not in agreement with the accounting records and returns. or we have not received all the information and explanations we require for our audit.
Report of the Independeni Auditors to the Trustees of John O, Groats Mill Trust Responsibilities of trustees As explained more fully in the Statement of Truslees. Responsibilities, the trustees are responsible for ihe preparation of the financial statements which give a true and fair view, and for such internal control as the trustees detemiine is necessary to enable the preparalion of financial Statements thai are free from material inisstatemenl. wheiher due to fraud or eOr. In preparing the financial statements. the trustees are responsible for assessing the charity's ability to continue as a going concern. disclosing, as applicable. matters related to aoing concem and using ihe going concem basis of accounting unles5 the trustees either intend to liquidate ihe charity or to cease operations. or have no realistic alternative but to do so. Our responsibilities for the audit of Ihe financial statements We have been appointed as auditors under Section 44(1)(c) of the Charities and Truste¢ Investment (Scotland) Act 2005 and report in accordance with the Act and relevant regulations made or having effeci thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance. but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if. individually or in the aggregaie. they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial statements. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: As part of designing our audit, we deterniined materiality and assessed the risks of material misstatement in the financial statements, including how fraud may occur by enquiring of management of its own consideration of fraud. We gained an understanding of Ihe legal and regulatory framework applicable to the charity and the sector in which it operates and considered the risk of acts by the charity which were contrary lo applicable laws and regulations including fraud. This included, but was not limited to, the Charities and Trustee Investment (Scoiland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. We made enquiries of management with regards to compliance with the relevant laws and regulations and corroborated any necessary evidence to relevant infomialion, for example. minutes of board meetings and evidence of any solicitor fees. We did not identify any key audit matters relating to irregularities, including fraud. As in all of our audits, we also addressed the risk of management override of internal controls including lesling journals. Our procedures included vouching charitable expendilure against corroborating evidence to confim] ihat ihe expenditure complied with the lernis of the Jo ant award. Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognizing that the risk of not detecting a maierial misstatement due to fraud is higher than the risk of not deiecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through coIIu5ion. There are inherent limitations in Ihe audit procedures perfonned and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the fmancial statements, Ihe less likely we are to become aware of it. A further description of our responsibilities for the audit of the financial stalements is located on the Financial Reporting Council's website at www.frc.org.uklaudilor5re5pon5ibilities. This description fonns part of our Report of the Independent Auditors. Page 7
Report of the Independent Auditor5 to the Truste of John O, Groats Mill Trust Use of our report This report is made solely to the charity's trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken 50 that we might state to the ¢harity'S trustees those matters we are Tequired to state to them in an auditors, report and for no oiher purpose. To the fullest ¢xtent tKnnitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a bodi., for our aullil li ork". for th is repc)ri. ()r flir IhL' (11)inions we have formed. Iloirs artere ccounianls Eligible to act as an auditor in tenns of Section 1212 of the Companies Act 2006 15 Princes Street Thurso Caiihness KW14 7BQ 20.11 ZOS Page 8
John O, Groats Mill Trust (a Scottish Charitable Incorporated Organisation) Statement of Financial Activities ror the Year Ended 31 Mareh 2025 2025 Total funds 2024 Total funds Unrestricted funds Restricted runds Notes INCOME AND ENDOWMENTS FROM Donations and legacies 21,253 2,460,939 2,482,192 1,684,038 Investment income 19.883 19,883 23,918 Total 41,136 2,460,939 2,502,075 1707.956 EXPENDITURE ON Charitable activities Chariiable activities 37,273 91,145 128,418 100,369 NET INCOME 3,863 2,369,794 2,373,657 1.607.587 RECONCILIATION OF FUNDS Tolal funds brought forward 202585 2,086,870 2,289,455 681,868 TOTAL FUNDS CARRIED FORWARD 206,448 4,456.664 4,663,112 2,289 455 The notes forni part of these financial statements Page 9
John O. Groats Mill Trust (a Scottish Charitable Incorporated Organisalion) Balance Sheet 31 March 2025 2025 Total funds 2024 Total funds Unrestricted funds RestTicl¢d funds Notes FIXED ASSETS Intangible assets Tangible assets Investment prop¢rty 10 2,688 814 2,688 4,084,718 267 4,083,904 267 1.465,548 12 3,502 4JSI281 4J54,783 1,465,548 CURRENT ASSETS Debtors Cash at bank 13 1,030 217,183 476,978 97,712 478,008 314.895 900,016 312.910 218,213 574,690 792,903 1.212,926 CREDITORS Amounts falling due within one year 14 (15,267) {469J07) (484574) {389.019) NET CURRENT ASSETS 202,946 105J83 308J29 823.907 TOTAL ASSETS LESS CURRENT LIABILITIES 2[,448 4,456,664 4,663,112 2289,455 NET ASSETS 206,448 4 663,112 2 289 455 FUNDS Unrestricted funds Restricted fund5'. Mill Fund Interelation Designer 206,448 202,585 4,456,664 2,082,590 4,280 4,456,664 2,086,870 TOTAL FUNDS 4,663,112 2 289,455 The financial statements were approved by the Board of Trustees and authorised for issue on . and were signed on its behalf by.. The notes fomi part of these financial statements Page 10
John O, Groats Mill Trust (a Seottish Charitable Incorporated Organisation) Cash Flow Statement for the Year Ended 31 March 2025 2025 2024 Notes Cash floiys from operating activities Cash generated frotn operations 2,892,200 1 180373 Net cash provided by operdting activiti¢s 2,892,200 1,180,373 Cash flows from investing activities Purchase of intangible fixed assets Purchase of tangible fixed assets (2,688) 2 887,527 891483) Net Cash used in investing activilies 2,890,215) 891,483) Change in ¢Ash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period 1,985 288,890 312,910 24,020 Cash and eash equivalents al the end of the reporting period 314,895 312910 The notes fomi part of these financial statements Page 11
John O, Groats Mill Trust (a Seottish Charitable Incorporaled Organlsation) Notes to the Cash Flow Slatement for the Year Ended 31 Mareh 2025 RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES 2025 2024 Net income for the reporting period (as per the Statement of Financial Aetivities) Adjustments for: Depreciation charges Decrease/(increase} in debtors Increase in creditors 2,373,657 1,607,587 980 422,008 95,555 798 (816,031) 388,019 Net eash provided by operations 2,892,200 1,180,373 ANALYSIS OF CHANGES IN NET FUNDS At 1.4.24 Cash flow At 31.3.25 Net cash Cash at bank 312,910 1,985 314895 312,910 1,985 314,895 Total 312,910 1,985 314895 The notes fonn part of these financial statements Page 12
John O, Groats Mill Trust (a Scottish Charitable Incorporated Organisation) Notes to the Financial Stalements for the Year Ended 31 March 2025 ACCOUNTING POLICIES BASIS OF PREPARING THE FINANCIAL STATEMENTS The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reportintr by Charilies: Stateinent of Recommended Practice applicable to charitie5 preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective l January 2019),. Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Charities and Trustee Investment (Scotland) Act 2005. The flnancial statements have been prepared under the historical cost convention. The charity has carried forward unrestricted r¢serves of £206,448 (2024 £202,585) and £4,456,664 (2024 £2,086,870) of restricted reserves. The Trustees have caLed out an assessment of its ability to continue as a going concern and are satisfied that they have adequate resources to continue in operational existence for the foreseeable future. Consequenily they continue to adopt the going concern basis of account in preparing the annual financial statements. The presentation cUencY is £ (sterling). The accounts are rounded to the nearest £. INCOME Income received that is earmarked either by the donor or by the ternis of the particular project will be shown under Restricted Funds. All income from legacies, gifts, donations and grants is credited io the Statement of Financial Activities when it is recognised that the charitable company has enliilement to the funds. when aiiy perfonnance conditions attached to the item have been met, it is probable that Ihe income will be received and the amount can be reliably measured. Rental income from the let of holiday accommodation is recognised as receivable in the year. EXPENDITURE Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation coinmitting the charity to that expenditure, il is probable that a transfer of economic benefits will be required in seltleinent and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be direcily attributed to particular headings they have been allocated lo aclivilies on a basis Consistent with the use of resources. TANGIBLE FIXED ASSETS Tangible fixed assets are originally recorded al cost. Depreciation is charged at the following annual rates in order to write off each asset over its e51imated useful life.. Plant and machinery IT equipment 1 50/0 reducing balance 151/1 o reducing balance No depreciation is provided on freehold property and exhibition costs whilst the Mill renovation and development is ongoing. INVESTMENT PROPERTY Investment property is shown at most recent valuation. Any aggregale surplus or deficit arising from change5 in fair value is recognised in the Statement of Financial Activities. TAXATION The charity is exempt from tax on its charitable activities. FUND ACCOUNTING Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Page 13 continued..
John O, Groats Mill Trust (a Scottish Charitable Incorporated Organisation) Notes to the Financial Statements- continued for the Year Ended 31 March 2025 ACCOUNTING POLICIES - Continued FUND ACCOUNTING Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restriciions arise when specified by the donor or when funds are raised for panicular restricted puryioses. Further explanation of the Datur¢ and PUTpose of each fund is included in the notes to the fmancial statements. PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS The charity operates a defined contribution pension scheme. Contribulions payable lo the charity's pension scheme are charged to the Statemenl of Financial Activities in the period io which they relale. DONATIONS AND LEGACIES 2025 2024 Donations Gift aid Grants 20,003 1,250 2,460,939 423 1,683.615 2,482 192 1684.038 Grants received, included in the above, are as follows: 2025 2024 Stroupsler Wind Fam) Community Fund Architectural Heritage Fund National Lottery Heritage Fund North H ighland Initiative SSE Highland Sustainable Development Fund DLUHC Communiry Ownership Fund Garfield Weston Foundation Magnox Ltd DounreayiNuclear Restoration Fund Regeneration Capital Grant Fund Highland Council Community Regeneration Fund Historic Environmenl Scotland Wolfson Foundation Highlands & Islands Enterprise 30,000 25,000 17,676 184,638 2,800 250,000 300,000 150,000 100,000 603,501 50,000 1,029,152 115,254 677,811 368,686 50,000 190,036 2,460,939 1683 615 Page 14 continued...
John O, Groats Mill Trust (a Scottish Charitable Incorporated Organisation) Notes to the Financial Statements- continued for the Year Ended 31 March 2025 INVESTMENT INCOME 2025 2024 Rents received 19,883 23,918 CHARITABLE ACTIVITIES COSTS Support costs (see note 5) Direct Cosls Totals Charitable activities 119,923 8,495 128,418 SUPPORT COSTS Governance Costs Finance Totals Charitsble activities 95 TRUSTEES, REMUNERATION AND BENEFITS There were no trustees, remuneration or other benefits for the year ended 31 March 2025 nor for the year ended 31 March 2024. TRUSTEES, EXPENSES There were no 31 March 2024. trustees, expenses paid for the year ended 31 March 2025 nor for the year ended STAFF COSTS 2025 2024 Wages and salaries Other pension costs 7,523 226 7,749 The average monthly number of employees during the year w&$ as follows: 2025 2024 Management No employees received emoluments in exce55 of £60,000. Paoe 15 continued...
John O, Groats Mill Trust (a Seottish Charitable Incorporated Organisation) Notes to the Financial Statements- continued for the Year Ended 31 March 2025 COMPARATIVES FOR THE STATEMENT OF FINANCIAL AcfiviTIES Unrestricted funds Restricted funds Total funds INCOME AND ENDOWMENTS FROM Donaiions and legacies 150,422 1,533,616 1,684,038 Investment income 23,918 23.918 Total 174340 1533,616 1.707.956 EXPENDITURE ON Charitable activities Charitable activities 29,561 70,808 100.369 NET INCOME 144.779 1.462,808 1.607,587 RECONCILIATION OF FUNDS Total funds brought forward 57,806 624.062 681,868 TOTAL FUNDS CARRIED FORWARD 202,585 2,086,870 2,289,455 FINANCIAL INSTRUMENTS The TNst has elected to apply the provisions of Section I l Basic Financial Instruments" and Section 12 "Other Financial Instruments Issues" of FRS102 to all of its financial instruments. Financial instrumenls are recognised in the Trust's balance sheet when the Trust becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset. with the net amounts presented in the financial statements where there is a legally enforceable right to set off ihe recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic financial assels Basic financial assets. which include debtors. cash and bank balances are initially measure at transaction price including transaction ¢ost5 and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction. where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as Teceivable within one year are not amortised. Basic financial liabilities Basic financial liabilities are initially recogni5ed at trnnsaction price unless the arrangement constitute5 a ftnancing trdnsaction, where the debt instrument is measured at the present value of the future payment5 discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Page 16 continued...
John O, Groats Mill Trust (a Scottish Charitable Incorporated Organisation) Notes to the Financial Statements- continued for the Year Ended 31 March 2025 FINANCIAL INSTRUMENTS- continued Trade and other credilors are obligations to pay for goods OT services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as cuent liabilities if payment is due within one year or less. If not. they are presented as n0n-cuent liabilities. Trade and other credi101s are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest rate method. Derecognition of financial liabililies rinancial liabilities are dere¢ognis¢d when the Trust's Contractual obligations expire OT are discharged or cancelled. io. INTANGIBLE FIXED ASSETS Design costs COST Additions NET BOOK VALUE At 31 March 2025 2,688 At 31 March 2024 ii. TANCIBLE FIXED ASSETS Freehold property Plant and Exhibilion Computer machinery & Interpretalion equipment Totals COST Ai l April 2024 Additions Reclassification ,461,020 2,723,848 267 J77) 5,754 1,466,774 2,887,527 267,377) 161,680 1,999 At 31 March 2025 3,917,491 5,754 161,680 ,999 4,086,924 DEPRECIATION At l April 2024 Charge for year 1,226 680 1,226 980 300 At 31 March 2025 300 2,206 NET BOOK VALUE At 31 March 2025 3,917,491 3.848 161,680 4,084718 At 31 March 2024 ,461.020 4,528 1,465,548 Page 17 continued...
John O, Groats Mill Trust (a Scottish Charitable Incorporated Organisation) Notes to the Financial Statements- continued for the Year Ended 31 March 2025 12. INVESTMENT PROPERTY FAIR VALUE Reclassification 267,377 At 31 March 2025 267,377 NET BOOK VALUE At 31 March 2025 267,377 At 31 March 2024 13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2025 2024 Other debtors Prepayments and accrued income 476,978 1,030 888,264 1.752 478 008 900,016 14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2025 2024 Other creditors 484,574 389 019 15. MOVEMENT IN FUNDS Net movement in funds At 31.3.25 At 1.4.24 Unrestricted funds General fund 202,585 3,863 206,448 Restrieted funds Mill Fund Interpretation Designer 2,082,590 4,280 2J74,074 4,456,664 2 086,870 4 456,664 TOTAL FUIYDS 2,289,455 2,373,657 4,663,112 Page 18 continued...
John O, Groats Mill Trust (a Scottish Charitable Incorporated Organisation) Notes to the Financial Statements - continued for the Year Ended 31 March 2025 15. MOVEMENT IN FUNDS- continued Net movement in funds, included in the above are a5 follows: Incoming resources Resourees expended Movement in funds Unrestrieted funds General fund 41,136 (37,273) 3,863 Restricted funds Mill Fund Interpretation Designer 2,460,939 (86,865) 2,374,074 2,460,939 9J,14S 2,369,794 TOTAL FUNDS 2,502,075 Comparatives for movement in funds Net movement in fund5 At 31.3.24 At 1.4.23 Un restricted funds General fund 57,806 144,779 202,585 Restricted funds Mill Fund Interpretation Designer 624.062 ,458,528 4,280 2,082,590 4,280 1,462 808 2,086 870 TOTAL FUNDS 681,868 1,607,587 2,289.455 Comparative net movemenl in funds, included in the above are as follows.. Incoming resources Resources expended Movement in funds Unrestricted funds General fund Revenue Projects 172,504 1,836 (27,725) 1.836) 144,779 174.340 (29.561) 144,779 Restricted funds Mill Fund Interpretation Designer .505,816 (47,288) 23 520) 1,458,528 1,533,616 (70,808) 1,462,808 TOTAL FUNDS 1,707,956 (100.369) 1,607,587 Page 19 continued...
John O, Groats Mill Trust (a Scottish Charitable Ineorporated Organlsation) Notes to the Financial Stalements- continued for the Year Ended 31 March 2025 MOVEMENT IN FUNDS- continued The Mill Fund is for the resloration and development of John O'Groats Mill. The Development Officer fund is to pay for a Development Officer to manage the Mill project. In the current year, funding for the development officer is included within the Mill Fund. The Interpretation Designer fund is to meet costs inCued in Creaiing the museum experience for visitor5 once the renovation works are complete. 16. RELATED PARTY DISCLOSURES Trustee Andrew Mowat is also a panel member for the Stroupster Community Wind Farni Benefit Fund, which awarded grant funding to John O'Groats Mill Trust for the mill renovaiion. Page 20
John O, Groats Mill Trust (a Scottish Charitable Incorporated Organisation} Detailed Statement of Financial Activiti&s for the Year Ended 31 March 2025 2025 2024 INCOME AND ENDOWMENTS Donations and legacies Donations Gift aid Grants 20,003 1,250 2,460,939 423 1,683,615 2,482,192 1,684,038 Investment income Rents received 19,883 Total incoming resources 2.502,075 1,707,956 EXPENDITURE Charitable activitie5 Wages Pensions Rates and water Insurance Light and heat Telephone Advertising Sundries Professional fees Development ol¢er Rental Agency Commission Cleaning General repairs PayPal fees Licences & Pemits Website development Activities Officer Membership fees & subscription Mill event5 Project costs Depreciation of plant and machinery Depreciation of compuler equipment 7,523 226 214 18,231 3,609 300 406 582 21,780 33,548 4,159 2,552 7,259 6,224 287 443 25,985 31,670 4,644 4,016 2,164 323 1,455 17,530 loo 455 5,950 680 300 281 5,848 1,836 798 119,923 91,456 Suppor¢ costs Finance Bank charges 95 73 This page does not forni part of the statutory financial statements Page21
John O, Groats Mill Trust (a Scottish Charitable Incorporated Organisation) Detailed Statement of Financial Activiti for the Year Ended 31 Mareh 2025 2025 2024 Finanee Governance costs Auditors, remuneration Accountancy and legal fees Independent Examinevs Fee 6,400 2,000 6,400 2,000 440 8,400 8,840 Total resources expended 128,418 100369 Net income 2,373,657 1,607,587 This page does not fonn part of the statutory financial 51atements Page 22