(Draft) General Charitable Trust

2025–2026

Trustees’ Report and Financial Statements for the Year Ended 31 March 2026

www.orkney.gov.uk

IMAGE: The cover displays the Orkney Islands Council crest and the text “ORKNEY ISLANDS COUNCIL”. Over a sunset landscape with a silhouetted monument, it states “(Draft) General Charitable Trust”, “2025–2026”, and “Trustees’ Report and Financial Statements for the Year Ended 31 March 2026”. The footer reads “www.orkney.gov.uk”.

Contents

• Charity Number: SC044607 — Trustees’ Annual Report — page 3

• Statement of the Trustees’ Responsibilities in Respect of the Accounts — page 8

• Independent examiner’s report to the trustees of Orkney Islands Council General Charitable Trust and the Accounts Commission — page 9

• Trust Accounts Financial Statements Overview — page 10

• Statement of Financial Activities for the period ended 31 March 2026 — page 11

• Balance Sheet for the period ended 31 March 2026 — page 12

• Notes forming part of the financial statements — page 13

Trustees’ Annual Report

1. Introduction

Orkney Islands Council acts as the sole trustee for the Orkney Islands Council General Charitable Trust SC044607 (OICGCT) which has charitable status and is registered with the Office of the Scottish Charity Regulator (OSCR).

Following approval of a Charity Reorganisation Scheme for the previously registered funds, they were disestablished under OSCR and are now incorporated as restricted funds within OICGCT.

The remaining funds within the OICGCT as at 1 April 2025 were William Orkney Reid Bursary Fund for the advancement of education, and the Orkney Educational Trust (OET) to promote general educational projects and support students through bursaries and educational travel.

The Trustees’ policy is to expend the remaining fund balances to benefit the common good of the people of Orkney and its environs.

The principal address for the OICGCT is:

Orkney Islands Council
School Place
Kirkwall
Orkney
KW15 1NY

Orkney Islands Council administers the OICGCT and separately accounts for it. It does not form part of the Council’s single entity balance sheet, although under s222 of the Local Government (Scotland) Act 1973, the property of the OICGCT ‘vest(s) in’ the relevant local authority. It is included in the annual accounts of the Council as a note to the main financial statements. The OICGCT accounts were considered as part of the group boundary assessment and concluded that it is not material. A summary of transactions and balances held is disclosed at note 7. The appointed external independent examiners are:

AJB Scholes
8 Albert Street
Kirkwall
Orkney
KW15 1HP

Trustees

In terms of the ‘Trustees’ of OICGCT, the guidance provided by OSCR is that those who have ‘general control and management’ of the charity are the charity trustees. Decisions regarding the general control and management of the OICGCT are made under delegated powers granted to the Trustees on their appointment by Orkney Islands Council.

The following individuals are the Trustees of the OICGCT in their capacity as senior officers and elected members of Orkney Islands Council as at 31 March 2026:

2. Structure, Governance and Management

Structure

The individual funds within the OICGCT were originally constituted in the form of bequests by individuals or families who entrusted the predecessors of the Local Authority with the task of managing the funds for charitable purposes. Many of the funds had very restricted and antiquated purposes which the trustees could no longer satisfy and therefore made application for approval of a Charity Reorganisation Scheme, in order to better enable them to actively manage funds for public benefit. The restrictions on disbursement of funds are as stated in the Deed of Trust as agreed by OSCR when the new charity was formed and are as follows:

Governance and Management

The trustees are responsible for preparing the Trustees’ report and financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice, see page 8 Statement of the Trustees’ responsibilities in Respect of the Accounts.

The trustees have delegated responsibility for the proper administration of the funds’ financial affairs to the Head of Finance of Orkney Islands Council. The Head of Finance, through the delegated powers granted by the trustees, manages the affairs of the Trust to secure the economic, efficient, and effective use of resources and safeguard the assets of OICGCT.

The Head of Finance has designated responsibility for ensuring an effective system of internal financial control is maintained and operated. The system of internal financial control can only provide reasonable and not an absolute assurance that assets are safeguarded, transactions are recorded and properly authorised, and that material errors or irregularities are either prevented or would be detected within a timely period. The system of internal financial control is based on a framework of regular management information, financial regulations, administrative procedures and a system of delegation and accountability. The Head of Finance has designated responsibility for keeping proper accounting records which are up to date, and which ensure that the financial statements comply with the Charities Accounts (Scotland) Regulations 2006.

Trustees, who are Councillors, are provided with induction training when appointed.

Grant Making Policy

The Trust considers applications that are within the restrictions of the post re-organisation purpose of monies held, with a focus on applications that promote the common good of the people of Orkney. No further restrictions which are additional to the post-reorganisation purpose of monies are made; thus, applications towards capital projects, other projects or core costs are considered. If any grants were to be made in excess of £10,000 the trustees would require follow up documentation proving that monies are spent in accordance with the approved purpose.

Risk

The Trustees have overall responsibility for the OICGCT’s system of internal control that is designed by senior management to ensure effective and efficient operations, including financial reporting and compliance with laws and regulations. The Trustees acknowledge that such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives and can only provide reasonable and not absolute assurance against material misstatement or loss.

3. Objectives and Activities

Payments are made for charitable purposes for the public benefit of Orkney and its environs.

The original purposes included:

• (a) The prevention or relief of poverty,
• (b) The advancement of education,
• (c) The advancement of the arts, heritage, culture or science,
• (d) The advancement of public participation in sport,
• (e) The provision of recreational facilities, or the organisation of recreational activities, with the object of improving the conditions of life for the persons for whom the facilities or activities are primarily intended,
• (f) The advancement of environmental protection or improvement,
• (g) The relief of those in need by reason of age, ill-health, disability, financial hardship or other disadvantage.

The remaining funds and their purpose are listed in section 2.

Income to the OICGCT funds during 2025/26 was £1,350 from deposit interest. No donations to the fund are solicited. See also Section 2 (Structure).

4. Achievements and Performance

The fund made charitable payments of £635 in the year, please refer to note 6 (Resources Expended Analysis), for details.

OICGCT funds were invested in the Council’s Loans Fund.

5. Financial Review

The OICGCT reserves policy is to hold all assets in the form of cash balances within the Council Loans Fund to enable ease of disbursement of funds. In the Approval of Charity Reorganisation Scheme all restrictions on the retention of capital were removed, because of the low value of funds and the minimal levels of interest income earned, to make any meaningful awards.

No individual fund is in deficit.

The expenditure on charitable activities has decreased in 2025/26 (note 6). No applications were received and approved for funding from the William Orkney Reid Bursary Fund, for advancement of education.

The two funds, both of which are for educational purposes, have a cumulative balance of £29,043 remaining at 31 March 2026.

6. Reserves Policy

The Charitable Trusts have no explicit reserves policy. As a general principle, maintaining the level of charitable payments made over the next few years should lead to a reduction in the value of reserves.

7. Future Plans

The Trustees’ policy is to maintain the level of charitable payments it makes over the next few years to benefit the common good of the people of Orkney and its environs.

On 29 August 2019 the OICGCT Trustees resolved that, as a guideline amount, except in cases of exceptional merit, the amount of award to be made in respect of application was to be increased from £100 to £200. Also, that powers be delegated to the Head of Finance, in consultation with the Chair of the Education, Leisure and Housing Committee, to determine applications for assistance from the General Charitable Trust, within the guideline amount of £200, noting that a formal meeting of the Trustees would be convened to consider exceptional applications or where the Head of Finance was not prepared to exercise delegation.

The Trustees wish to thank the Orkney Islands Council officers involved in the restructuring of the various charity registrations and funds, and in the production of the Report and Financial Statements.

Signed: Signed:

Oliver Reid
Chief Executive
Orkney Islands Council

Erik Knight
Head of Finance
Orkney Islands Council

On behalf of the Trustees Signed:

Graham Bevan
Convener
Orkney Islands Council

Statement of the Trustees’ Responsibilities in Respect of the Accounts

The Trustees are responsible for preparing the Trustees’ report and accounts in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (UK GAAP).

Law applicable to charities in Scotland requires the Trustees to prepare financial statements for each financial year which gives a true and fair view of the Trust’s financial activities during the year and of its financial position at the end of the year. In preparing financial statements the Trustees are required to:

• Select suitable accounting policies and apply them consistently.
• Make judgements and estimates that are reasonable and prudent.
• State whether applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements, and
• Prepare the financial statements on an on-going basis unless it is inappropriate to presume that the Trust will continue in operation.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Trust and which enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charity Accounts (Scotland) Regulations 2006 and the provision of the Trust Deed. The Trustees are also responsible for safeguarding the assets of the trust and hence for taking reasonable steps for the prevention or detection of fraud and other irregularities.

On behalf of the Trustees Signed:

Graham Bevan
Convener
Orkney Islands Council

Independent examiner’s report to the trustees of Orkney Islands Council General Charitable Trust and the Accounts Commission

Independent auditors report

Trust Accounts Financial Statements Overview

Introduction

The following pages detail the Financial Activities, Balance Sheet, and relevant Notes to Accounts, as required by the Charities Accounts (Scotland) Regulations 2006. A Cash Flow Statement is not required as the fund is classified as a small charity as defined in the Charities SORP and therefore exempt from producing a Cash Flow Statement.

Statement of Financial Activities

The Statement of Financial Activities provides an analysis of the incoming and expended resources for the period. The OICGCT funds show incoming and expended resources which are all classified as restricted.

If applicable the Statement would also show any cash movements in relation to fixed assets. In the case of the OICGCT funds, there has been no purchase or sale of fixed assets. In addition, there have been no transfers between the respective funds.

Balance Sheet

The Balance Sheet shows the closing balances of the Assets and Liabilities of the fund at the end of the period.

Notes to the Accounts

Notes to the accounts expand on or explain the information contained in the Statement of Financial Activities and the Balance Sheet

Statement of Financial Activities for the period ended 31 March 2026

IMAGE: The Statement of Financial Activities table reports restricted incoming resources of £3,850 in 2026 and £4,216 in 2025; restricted resources expended of £3,585 in 2026 and £17,022 in 2025; net income/(outgoing) resources of £265 and £12,806 respectively; and total funds carried forward of £29,043 in 2026 and £28,778 in 2025.

Balance Sheet for the period ended 31 March 2026

The draft accounts were authorised for issue on 29 June 2026.

On behalf of the Trustees Signed:

Graham Bevan
Convener
Orkney Islands Council

IMAGE: The Balance Sheet table reports loans fund deposits of £29,643 in 2025 and £29,378 in 2024, creditors of £600 in each year, net assets of £29,043 and £28,778 respectively, and total funds of £29,043 and £28,778 respectively. It is signed by Graham Bevan, Convener, Orkney Islands Council.

Notes forming part of the financial statements

1. Accounting Policies

Introduction

The Financial Statements for the period ended 31 March 2026 have been compiled in accordance with the Accounting and Reporting by Charities: Statement of Recommended Practice (the SORP), UK Generally Accepted Accounting Principles (UK GAAP) and the Charities Accounts (Scotland) Regulations 2006. The Financial Reporting Standard FRS 102 has been applied. They are designed to give a true and fair view of the financial performance and position of OICGCT. There are no significant departures from accounting standards.

The accounts are prepared on an accruals basis.

The accounting concepts of ‘materiality’ and ‘going concern’ have been considered in the application of accounting policies. In this regard the materiality concept means that information is included where the information is of such significance as to justify its inclusion. The going concern concept assumes that neither the Council nor its trustees will significantly curtail the scale of its operations.

The accounts have been prepared under historic cost convention, other than changes resulting from the revaluation of certain categories of assets. The following accounting policies used in its preparation have been reviewed following the introduction of Financial Reporting Standard 102 ‘Accounting Policies’ (FRS102).

Incoming Resources

Recognition of incoming resources

These are analysed between Unrestricted and Restricted and included in the Statement of Financial Activity when:

• the charity becomes legally entitled to the resources.
• the trustees are reasonably certain they will receive the resources, and
• the monetary value can be measured with sufficient reliability.

Grants and Donations

Grants and donations are only included in the Statement of Financial Activity when the charity has unconditional entitlement to the resources.

Gifts in Kind

Any gifts in kind are not reflected in the Statement of Financial Activity but are referred to, when necessary, in the Trustees’ Annual Report.

Services in Kind

This includes any services provided by Orkney Islands Council to the Trust.

Investment Income

This is included in the accounts on an accruals basis.

Investment Gains and Losses

This would include any gain or loss on the sale of investments and any gain or loss resulting from revaluing investments to market value at the end of the period.

Resources Expended

Liability Recognition

Liabilities are recognised on an accruals basis when the liability is incurred.

Charitable Activities

Decisions regarding the way the OICGCT’s resources are expended are taken by the Trustees under delegated powers granted to them by Orkney Islands Council.

Costs of Generating Funds

The cost of administering the OICGCT is borne entirely by Orkney Islands Council and recorded as a donation of service.

Governance Costs

Governance costs, where applicable, include the:

• Costs of the preparation and independent, or audit, examination of the annual report and financial statements.
• Cost of any legal advice to trustees on governance or constitutional matters.
• Cost of advertising the availability of and administering grants.

Grants Payable Without Performance Conditions

These are recognised in the accounts when the grant is approved.

Assets

The OICGCT holds no assets other than cash.

2. Trustees’ Remuneration and Expenses

Neither the trustees of the OICGCT nor any associated person connected with them have received any remuneration for their services. Further, no directly incurred expenses were reimbursed to the trustees during the period.

3. Related Parties

During the period, the OICGCT balances were invested by Orkney Islands Council who managed the administration of the Funds on behalf of the Trustees. No costs were incurred by OICGCT for this administration. The Council also acts as the banker for OICGCT and all transactions incoming and expended, are made via the Council’s accounts. This creates a debtor as detailed in the respective Funds’ balance sheets, labelled as short-term deposits. There are no outstanding balances due to or from Orkney Islands Council. Deposit interest of £1,350 (£1,716 prior period) has been received in the year from Orkney Islands Council in relation to the debtor balance held.

4. Income from Donations and Legacies

There was no income from donations or legacies during 2025/26.

5. Investment Income Analysis

6. Resources Expended Analysis

IMAGE: The Investment Income Analysis table shows deposit interest of £1,350 in 2026 and £1,716 in 2025. The Resources Expended Analysis table shows charitable activities of £635 in 2026 and £14,105 in 2025, governance costs of £450 and £417 respectively, and total resources expended of £1,085 and £14,522 respectively.

7. Movement in Funds Analysis

The movement in fund analysis does not reflect the £2,500 of incoming and outgoing resources to and from Orkney Islands Council included in the Statement of Financial Activities, above, and reflected in note 10 below.

IMAGE: The Movement in Funds Analysis tables show that in 2025/26 the William Orkney Reid Bursary Fund increased from £6,290 to £6,370 and OET increased from £22,488 to £22,673, producing total funds of £29,043. For 2024/25, the William Orkney Reid Bursary Fund increased from £6,180 to £6,290 and OET decreased from £35,404 to £22,488, producing total funds of £28,778.

8. Short Term Deposits

9. Creditors

10. Donated Services and Facilities

The Orkney Islands Council provides accountancy services to the trust, administration services on behalf of the trustees and provides meeting room facilities. The benefit to the Trust during 2025/26, at market rates, was £2,500.

11. Events after the Balance Sheet Date

The accounts were signed on behalf of the Trustees, being the responsible persons for the financial affairs of the OICGCT. Events taking place after this date are not reflected in the financial statements or notes. Where events taking place before this date provided information about conditions existing as at 31 March 2026, the figures in the financial statements and notes have been adjusted in all material respects to reflect the impact of this information.

IMAGE: The final page presents the sections “7. Movement in Funds Analysis”, “8. Short Term Deposits”, “9. Creditors”, “10. Donated Services and Facilities”, and “11. Events after the Balance Sheet Date”, together with the tables and figures transcribed above.