The Scottish Rights of Way and Access Society (A company limited by guarantee)

Transcription

1 (A company limited by guarantee) Registered Company Number SC Registered Charity Number SC Report and accounts for the year ended Henderson Loggie 34 Melville Street Edinburgh EH3 7HA Tel: Fax:

2 Contents The Scottish Rights of Way and Access Society Page Company information 1 Directors report 2 Statement of directors responsibilities 6 Independent examiner s report to the members on the unaudited accounts 7 Statement of financial activities (incorporating the income and expenditure account) 8 Balance sheet 9 Notes to the accounts 10

3 Company information Honorary President Vacant Directors JP Lawson (Honorary Vice President) R Aitken (Honorary Vice President) GM Menzies (Chairman) JW Mackay (Vice Chairman) H Anderson RS Barron JC Craig (retired 21 November 2009) JBC Davidson J Duberley E Gotts KM Griffiths C Hobster DM Jenkins (retired 21 November 2009) E McCracken PM Preedy PS Somerville JD Pope (appointed 21 November 2009) KJ Ritchie (appointed 24 September 2009) Company Secretary J Lewis (until 16 December 2009 ) G MacQuarrie (from 16 December 2009 ) Treasurer UM Ryalls Registered Office Bankers 24 Annandale Street Clydesdale Bank plc Edinburgh Nicolson Square EH7 4AN Edinburgh EH8 9BX Registered Company Number SC Registered Charity Number SC Independent examiner Janet M Stevenson FCA 34 Melville Street Edinburgh EH3 7HA 1

4 Directors report The Scottish Rights of Way and Access Society The Directors present their report and accounts for the year ended. Preparation of accounts The Accounts have been prepared in accordance with the Society s governing document, current statutory requirements and the Statement of Recommended Practice: Accounting and Reporting by Charities issued in January External examination of the accounts The accounts are subject to an independent examination as required by Charity legislation in Scotland. Due to the small size of the charitable company, the accounts are not required to be audited under either Company law or Charity law. Structure, governance and management Governing document The Society is a company limited by guarantee and is governed by its Memorandum and Articles of Association. Each member of the company has undertaken to contribute an amount not exceeding 1 towards any deficit arising in the event of the Society being wound up. Board of Directors Directors of the Society are also charity trustees for the purposes of charity law and are listed on page 1. Under the requirements of the Memorandum and Articles of Association, Board members are appointed for a period of three years after which they may be re-appointed at the next AGM. Board members have an interest in the outdoors, bring certain skills and qualities helpful to the organisation, and are representative and knowledgeable of user groups, such as walkers, cyclists, equestrians and disabled people. The Board meets at least quarterly and is responsible for overall policy and strategy, assisted by Committees such as the Executive and Finance Committees. The National Secretary is responsible for the day-to-day running of the Society, supported by other staff and volunteers, and acts as Company Secretary. Objects, activities and achievements The principal objects of the Society, as set out in the Memorandum of Association, are: preservation, defence, restoration and acquisition, for the public benefit, of public rights of access over land in Scotland, including public rights of way and their amenity. The Society s principal activities during the year, in pursuit of these objects, were: - the giving of advice about rights of access and rights of way to the public, local councils and other interested parties, with the objective of defending these access rights; - the continuation of a project to research, record, and promote heritage paths throughout Scotland; - the continued recording of rights of way and other paths; - signposting paths to show their routes and to help safeguard their status; and - the production of written material on access and rights of way to promote better understanding of these matters. 2

5 Directors report (continued) The Scottish Rights of Way and Access Society Objects, activities and achievements (continued) The provision of advice about rights of access and rights of way continues to be the largest area of the Society s work. During the year ending 30 th June 2010, the Society received over 1,000 enquiries, mainly from members of the public but also from local authority access officers and other access professionals, and from the press. Some of these only required a short response with information e.g. about the legal position or the location of rights of way. However, many enquiries result in case work which continues for months or even years. Comments and objections are made in cases where planning applications or other developments affect rights of way or general access. We also take action where access has been blocked or refused, for example, two Directors were witnesses in the Fife Council v Nisbet case, a long-running dispute over blockage to and the harassment of users of a right of way near Newburgh. The Society continued to provide information on rights of way in response to over 600 requests from solicitors dealing with property transactions, and to wind farm developers. The number of enquiries from solicitors increased again this year, despite the economic downturn, possibly as a result of the high profile of access court cases. A major project, the Heritage Paths Project, is under way to research, record and promote heritage paths throughout Scotland. This Project is funded by Scottish Natural Heritage (SNH) and the Heritage Lottery Fund for a 3 year period, and will complete in September The project is managed by a Project Officer, Neil Ramsay, and has made very good progress. Over 350 heritage paths throughout the country have been identified and researched; a web site ( has been launched; over 100 special plaques have been added to signposts, providing information about the routes; learning resources for schools are under development; a map of national heritage paths has been produced; and the content of a book is under discussion. This successful project has been well received and it is hoped to raise funds to continue this work. The Heritage Paths project gave good support to the Celebrating Fife 2010 event, during which Neil Ramsay led two guided walks. SNH has also provided funding for an additional work programme, including: work to produce new editions of Scottish Hill Tracks and a revised Case Law Book. This grant supports our reporting on relevant court cases and our service to provide local authorities with updates to the Catalogue of Rights of Way. Volunteer surveyors were recruited to review the routes in Scottish Hill Tracks, and Peter Mackay and John Mackay appointed editors for the new edition. They are receiving valuable assistance from volunteers Judith Lewis, Peter Wood and Janet Clark. Volunteers are also assisting with preparations for the revised case law book. Scottish Hill Tracks is on course for publication in 2011, whilst the Case Law Book has reached final draft stage and will be published on-line later in Signposting work still continues. Signposting is now mainly carried out within the Heritage Paths Project, as above, but other work is also carried out where necessary, including repairs to existing signs. As with the Nisbet case, the Society has liaised with local authorities in a number of cases where legal action has been considered, or taken, to enforce rights of way and the provisions of the new access legislation. Court cases of interest have been monitored and reported via to access contacts and summary reports placed on the ScotWays web site. We have responded to a range of consultations where access considerations have been identified, including further consultations by local authorities on draft core path plans, and some national consultations, such as SNH s Paths Policy, including long distance routes, and a number of national planning policy consultations. Concern has been expressed to the Council of Scottish Local Authorities about the need for adequate funding for core paths and access work in the future. The Society has continued to work with the Scottish Law Commission on the issue of access across railway lines. Members in Midlothian implemented a scheme to monitor and clear paths in the area, in conjunction with local authority staff and with SNH funding via the Society. 3

6 Directors report (continued) The Scottish Rights of Way and Access Society Objects, activities and achievements (continued) Continuing membership of the National Access Forum and the SNH/NGO Liaison Group, and attendance at other meetings, enabled the Society to play its part in the formulation of access policy, and to be well informed on issues of national importance. The Society continues to be represented on most local access forums and participates in an annual workshop for recreational users on local access forums, organised jointly with other recreational groups. We have been represented at a number of events, again including the Dundee Mountain Film Festival and the SCAN Access Fair. The Society has provided speakers for several events, especially about the Heritage Paths Project. There have also been talks to a number of local groups. The Society encourages membership by organising walks and other activities for members, distributing the Annual Report and Newsletters, via the Society s web site ( and through publicity for the Heritage Paths Project. Financial review A small operational loss for the year of 5,576 (2009: 15,646) was made. As noted above, major grant funding is provided by Scottish Natural Heritage and the Heritage Lottery Fund for the Heritage Paths Project and other work. These grants will come to an end in 2010, so new sources of funding are being investigated. In addition to grants, the Society funds its activities from the receipt of voluntary income in the form of subscriptions, donations and legacies. The Society also receives income from contributions from solicitors towards the cost of searches of the right of way records. Provided adequate income can be sourced to offset the ending of the current Heritage Lottery Fund and Scottish Natural Heritage grant programmes, the financial position will be satisfactory. Within the year, Directors took the opportunity of the retiral of Judith Lewis as National Secretary to re-structure staff resources. Risk management The Board have reviewed the risks faced by the organisation and have developed an action plan to manage them. The risk register is subject to regular review and updating. Reserves policy The unrestricted fund represents the free reserves of the company and they are considered to be adequate to ensure the Society can continue to operate if the current funding sources cease and new funding has to be sourced. Investment policy The Society has only one listed investment, which it intends to sell at an opportune time and to place the proceeds with other Society funds in interest bearing accounts. Plans for the future The Society will continue to act in pursuit of its Objects in the coming year. The Society is actively looking for further funding to continue its work. 4

7 Directors report (continued) The Scottish Rights of Way and Access Society Contribution of staff and volunteers The Directors restructured staff responsibilities to align work output with resources. The post of National Secretary reverted to a part time appointment and that of Access Enquiry Officer became a full time one. In December 2009 Judith Lewis retired as National Secretary after over four years, and the Directors wish to place on record their appreciation of her outstanding contribution to the Society. Judith had also been National Secretary from 1991 to She has remained an active supporter of Scotways particularly through her work on the new editions of Scottish Hill Tracks and the Case Law book. George MacQuarrie was welcomed as National Secretary and his previous experience in the Society's field is proving useful. The Directors also gratefully acknowledge the valuable contributions made during the year by all ScotWays staff and volunteers. Small company special provisions The report of the Directors has been prepared in accordance with the special provisions of the Companies Act 2006 relating to small companies. This report was approved by the Board on 23 September GM Menzies Chairman 5

8 Statement of directors responsibilities The Scottish Rights of Way and Access Society The directors are responsible for preparing the annual report and financial statements in accordance with applicable law and regulation. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of affairs of the charitable company and of its surplus or deficit for the year then ended. In preparing those accounts, the directors are required to: select suitable accounting policies and then apply them consistently; make judgements and estimates that are reasonable and prudent; prepare the accounts on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006; the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations They are responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. They are also responsible for the maintenance and integrity of the corporate and financial information included on the company s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from that in other jurisdictions. 6

9 34 Melville Street Edinburgh EH3 7HA United Kingdom Independent Examiner s Report to the Directors of the Scottish Rights of Way and Access Society I report on the financial statements of the charity for the year ended which comprise the statement of financial activities, the balance sheet and the related notes. Respective responsibilities of directors and examiner The charity s directors are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations The charity 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 financial statements 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 report My examination is carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements 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 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 financial statements. 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: to keep accounting records in accordance with Section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and to prepare accounts with accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations; have not been met, or 2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached. Janet M Stevenson FCA 23 September

10 Statement of Financial Activities (incorporating the income and expenditure account) for the year ended Note Unrestricted Funds Restricted Funds Total 2010 Total 2009 Incoming resources Incoming resources from generated funds Voluntary income 4 33,800-33,800 37,209 Investment income 5 1,513-1,513 2,826 35,313-35,313 40,035 Incoming resources from charitable activities Provision of advice re Rights of Way 6 25,230-25,230 26,762 Updating CROW and publications 6-18,340 18,340 15,239 Signposting Rights of Way and Access ,000 1, Heritage paths 6-43,988 43,988 19,808 25,643 63,328 88,971 61,840 Total incoming resources 60,956 63, , ,875 Resources expended Costs of generating funds Cost of generating voluntary income 7 (13,578) - (13,578) (11,895) Charitable activities Provision of advice re Rights of Way 8 (27,718) - (27,718) (29,521) Updating CROW and publications 8 - (23,762) (23,762) (24,491) Signposting Rights of Way and Access 8 (672) (1,014) (1,686) (110) Heritage Paths Project 8 - (47,504) (47,504) (35,956) (28,390) (72,280) (100,670) (90,078) Governance costs 9 (15,280) - (15,280) (14,644) Total resources expended (57,248) (72,280) (129,528) (116,617) Net incoming/(outgoing) resources before transfers 3,708 (8,952) (5,244) (14,742) Transfers between funds (16,539) 16, Net incoming/(outgoing) resources before other recognised gains and losses (12,831) 7,587 (5,244) (14,742) Unrealised losses on investments 13 (332) - (332) (904) Net movement in funds (13,163) 7,587 (5,576) (15,646) Funds brought forward at 1 July ,740 (5,280) 210, ,106 Funds carried forward at 202,577 2, , ,460 The statement of financial activities includes all gains and losses recognised in the year. All incoming resources and resources expended derive from continuing activities. 8

11 Balance sheet as at Notes Fixed assets Tangible assets , ,976 Investments at valuation 13 6,059 6, , ,367 Current assets Stock 14 3,939 4,588 Debtors 15 14,322 10,998 Cash in bank and at hand 81,599 88,303 99, ,889 Creditors: amounts falling due within one year 16 (4,964) (2,926) Net current assets 94, ,963 Total assets less current liabilities 204, ,330 Creditors: due after one year, loan on office property 17 - (870) 204, ,460 Reserves Unrestricted funds , ,740 Restricted funds 19 2,307 (5,280) 204, ,460 The directors are satisfied that the company is entitled to exemption under section 477 of the Companies Act 2006 and that the members have not required the company to obtain an audit of its accounts in accordance with the provisions in section 476 of the Act. The directors acknowledge their responsibilities for: (i) (ii) ensuring that the company keeps accounting records which comply with Section 386 of the Companies Act 2006; and preparing accounts which give a true and fair view of the state of affairs of the company at the end of the financial year and of its profit or loss for the financial year in accordance with the requirements of Section 396 of the Companies Act 2006, and which otherwise comply with the requirements of the this Act relating to accounts, so far as is applicable to the company. These accounts have been prepared in accordance with the special provisions of the Companies Act 2006 relating to small companies. These accounts were approved and authorised for issue by the Board on 23 September GM Menzies Chairman 9

12 Notes to the accounts (forming part of the accounts) 1 Accounting policies Accounting convention The financial statements have been prepared in accordance with Financial Reporting Standard for Smaller Entities (effective January 2008), the Companies Act 2006, The Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 and the Statement of Recommended Practice (SORP 2005): Accounting and Reporting by Charities. They have been prepared under the historical cost convention as modified by the revaluation of fixed asset investments. Incoming resources Income is accounted for on an accruals basis with the exception of legacies and donations, which are accounted for when received. Ordinary subscriptions are recognised in the year in which they are received. Grant income is recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability. Income is only deferred when the donor specifies that the grant or donation must be used in future accounting periods, or when the donor has imposed conditions which must be met before the charity has unconditional entitlement. Life memberships Life membership subscriptions are recognised as income in the year of receipt and allocated to the life membership fund. Each year 5% of this fund is transferred to the general reserve. Resources expended Expenditure is accounted for on an accruals basis: Costs of generating funds consist of costs relating to the raising of voluntary income; Charitable activities include expenditure associated with one of the charity s objects and principal activities in the provision of advice regarding rights of way and access; the cataloguing of known rights of way; and in signposting rights of way and other routes. 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 include central functions and have been allocated to activity cost categories on a basis consistent with the staff salaries incurred on each activity. Investments Fixed asset investments are accounted for at market value. Restricted and unrestricted funds Restricted funds are those funds which are subject to specific conditions regarding their application. These conditions have been specified by the donors of funds. Unrestricted funds are applied at the discretion of the Board of Directors in furtherance of the objectives of the Society. Transfers from unrestricted funds to restricted funds are made when required in order to finance deficits arising on restricted projects. 10

13 Notes (continued) 1 Accounting policies (continued) Depreciation Fixed assets are capitalised at cost. Depreciation has been provided at the following annual rates in order to write off fixed assets over their useful lives: Office equipment Heritable property 33.3% straight line Nil In the opinion of the Directors, which is based on an informal valuation from a qualified surveyor, the residual value of the heritable property is not less than the carrying amount in the accounts, therefore no depreciation has been charged. Stocks Stock is valued at the lower of cost and net realisable value. Taxation The Society is recognised as a charity by the Inland Revenue and is therefore not liable to taxation on its income. 2 Directors remuneration The directors receive no remuneration for their services, but may be paid travelling, subsistence and other expenses properly incurred by them in connection with the discharge of their duties. In the current year 3 (2009: 4) directors were paid such expenses. Directors expenses Net surplus This is stated after charging: Depreciation of fixed assets Independent examiner s remuneration 1,647 1,585 4 Voluntary income Unrestricted Restricted Total Total Funds Funds Annual subscription 14,453-14,453 17,385 Life subscriptions ,250 Corporate subscriptions 8,660-8,660 10,865 Donations 5,900-5,900 4,144 Income tax recoverable 3,937-3,937 3,565 33,800-33,800 37,209 11

14 Notes (continued) 5 Investment income Unrestricted Restricted Total Total Funds Funds Dividends Interest 1,066-1,066 2,396 1,513-1,513 2,826 6 Incoming resources from charitable activities Updating CROW Advice and publications Signposting Heritage paths HLF Grant ,000 20,000 - SNH Grant - 18,340-23,988 42,328 35,047 Signposting - - 1,413-1, Lawyers searches 19, ,771 20,650 Publications 4, ,505 4,638 Bookshop ,083 Walks Other income ,230 18,340 1,413 43,988 88,971 61,840 7 Costs of generating voluntary income Staff costs 5,449 3,750 Printing, postage and stationery 5,479 5,709 Support costs 2,650 2,436 13,578 11,895 8 Charitable activities Direct Staff Support costs costs costs Advice 5,237 19,956 2,525 27,718 29,521 CROW and publications ,072 3,030 23,762 24,491 Signposting 1, , Heritage Paths 16,531 27,494 3,479 47,504 35,956 24,114 67,522 9, ,670 90,078 12

15 Notes (continued) 9 Governance costs Independent examiner s fees 1,647 1,585 Meeting expenses 3,066 3,334 Travel expenses Preparation of annual report 3,713 3,094 Staff costs 3,876 3,651 Support costs 2,941 2,885 15,280 14, Support costs Cost of generating Charitable Governance voluntary income activities costs Treasurer s honorarium 1, ,450 4,900 4,650 Insurance & mortgage 232 2, ,274 3,354 Telephone, water, H&L 289 3, ,081 3,655 Computer costs 138 1, ,942 3,998 Subscriptions Depreciation ,650 9,034 2,941 14,625 16, Employees Staff salaries 71,091 68,448 Employer s NIC 5,756 5,821 No employee earned more than 60,000 in either year. The average number of employees was 6 (2009: 5) (full time equivalent 3, (2009: 3). 76,847 74,269 13

16 Notes (continued) 12 Tangible fixed assets Heritable property Office equipment Total Cost At 1 July ,765 13, ,027 Additions At 103,765 13, ,145 Depreciation At 1 July ,051 13,051 Charge for the year At - 13,216 13,216 Net book value At 103, ,929 At 30 June , , Investments Market value at 30 June ,391 7,295 Market value at 6,059 6,391 Unrealised loss during the year (332) (904) Investments comprise a holding of 3,651 Standard Life plc ordinary shares. The cost of these shares is 7, Stocks Stocks consist entirely of goods for distribution to members and other interested parties Stock in hand 3,939 4, Debtors Scottish Natural Heritage Grant 8,602 5,511 Income tax recoverable 3,493 3,464 Interest receivable 5 7 Prepayments 2,022 2,016 Midlothian Paths Grant ,322 10,998 14

17 Notes (continued) 16 Creditors: amounts falling due within one year Heritage Path project creditors Sundry creditors 3,596 2,786 Building society loan (note 17) ,964 2, Creditors: amounts falling due after one year Building Society loan The building society loan is secured by a standard security over the heritable property. The loan was repaid in full in August Loans Creditors include Amounts falling due for payment after more than five years Unrestricted funds Life Membership Fund Case Law Project General Reserve Property Fund Total Unrestricted funds Balance at 1 July ,041 2, ,438 66, ,740 Incoming resources ,106-60,956 Resources expended - - (57,248) - (57,248) Losses on investments - - (332) - (332) Transfer between funds (1,395) - (15,144) - (16,539) Balance at 26,496 2, ,820 66, ,577 The balance on the case law project has been agreed as surplus on the project which can be spent as the Society wishes by agreement with the donor. It is included within Unrestricted Funds but earmarked by the Directors for work on publications. 15

18 Notes (continued) 19 Restricted funds Lockerby Bequest Fund George Cheyne Memorial Fund Heritage Paths Fund CROW and Publications Midlothian Paths Fund Total Restricted funds Balance at 1 July , (7,587) - - (5,280) Incoming resources ,988 18,340 1,000 63,328 Resources expended - - (47,504) (23,762) (1,014) (72,280) Transfers between funds ,103 5, ,539 Balance at 1, ,307 Lockerby Bequest Fund: to be used for work in Dumfries & Galloway. George Cheyne Memorial Fund: to be used for projects in memory of George Cheyne. Heritage Paths Fund: funding received from Scottish Natural Heritage and the Heritage Lottery Fund to fund a project relating to Heritage Paths. CROW and Publications: funding received from Scottish Natural Heritage to produce new editions of Scottish Hill Tracks and the Case Law Book in addition to providing information on the updates to the Catalogue of Rights of Way. Midlothian Paths: funding received from Scottish Natural Heritage to fund a project relating to Midlothian Paths. 20 Analysis of net assets among funds Unrestricted funds Restricted Funds Fixed assets 109, , ,367 Net current assets 92,589 2,307 94, ,963 Long term liabilities (870) 202,577 2, , , Leasing commitments Annual commitments under non-cancellable leases are as follows: Other 2010 Other 2009 Operating leases which expire: Within 1 year - - In second to fifth years inclusive 1,409 1,409 1,409 1,409 16