As can be seen above from The Lennoxtown Initiative accounts for year ending 31 March 2014, the Celtic SLA project which was supposed to benefit the ratepayers of East Dunbartonshire has left the charity in debt to the tune of £166,834.
The Restricted Funds are for specific purposes and the Celtic SLA is the only project in deficit. The Unrestricted Funds deficit is for operational purposes unallocated to a specific project. As we shall see below EDC council and ratepayers has been funding that deficit too.
The Total Funds deficit of £271,007 is Net Assets figure of Total Assets – Current Liabilities, as stated from the same accounts:
So at the moment EDC council, who is ‘running’ the charity, and the ratepayers is funding the charity’s debt of £327,825 most of which is the £166,834 Celtic SLA debt due to payouts to Celtic exceeding the charity’s funds. The charity is in reality insolvent.
The Charity Accounts for year ending 31 March 2015 are Late
From Companies House the entry for the charity reads:
The consequences for the charity are being fined by Companies House/Register and being put further in debt and the charity’s directors having that black mark against their name.
Previously Companies House wanted to Windup the charity last year
EDC need to keep The Lennoxtown Initiative ‘alive’ on a drip in order that the debt of £327,825 is not written off and the council has to explain to ratepayers and auditors why they have been funding a dead company. EDC this time persuaded Companies House not to delist the charity.
With the accounts being very late I’m not sure Companies House will listen the next time. Then the council’s ratepayers and Scottish Government will have to put their hands in their pockets.