Clyne Heritage Society - Charities report - 19.3.2

REGISTERED COMPANY NUMBER: SC557763 (Scotland)

REGISTERED CHARITY NUMBER: SC028193

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 December 2019

for

Clyne Heritage Society

Page

Report of the Trustees

1

to

4

Independent Examiner's Report

5

Statement of Financial Activities

6

Balance Sheet

7

to

8

Notes to the Financial Statements

9

to

17

The trustees who are also directors of the charity for the purposes of the Companies Act 2006,

present their report with the financial statements of the charity for the year ended

31 December 2019. The trustees have adopted the provisions of 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) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

Charitable Purposes:

The objects of the Society are to advance the education of the public about, to stimulate public

interest in and to care for the history and heritage of the Parish of Clyne, by any means that is now,

or hereafter may be, charitable in law.

These aims are to be met by such objectives as:

- the preservation of archaeological remains, buildings and structures of historical interest,

artefacts and other objects that reflect or are connected with the life and history of the area.

- the preparation of reports and schedules of historic relics and to collect, collate and preserve

pictorial and literary records.

- the investigation and tracing of local family histories.

- The acquisition of, by means of gift, purchase or loan, historical relics and records for the

purpose of exhibition, preservation and safe custody.

- setting up a local museum, accessible to the local community and the general public.

- the creation and management of an environment, preferably including the museum referred to

the previous clause, through which members of the local community can be encouraged to meet to

interact and engage with matters of historic and general interest relevant to the area.

- allowing for a business trading arm to be formed, as required to support the previous two

clauses.

- the encouraging, supporting and carrying out of research into matters of historic and general

interest in the area, and to publish the results in suitable form.

- the maintenance of liaison with educationalists and by means of meetings, lectures, exhibitions,

publications and general publicity, to encourage students and others to take an interest in the aims

of the Society.

- the making of such representations to official bodies as may in the opinion of the organisation be

necessary to safeguard its purposes and the public interest.

- the undertaking of any projects of a charitable nature which will assist the foregoing purposes.

Significant activities

By holding Exhibitions, Events, Walks, Tours, Lectures and Excavations, the operation of the Brora

Heritage Centre and by creating Publications and Magazines, the trustees believe that by keeping

people aware of and informed about the heritage, history and archaeology that these will be

preserved.

Volunteers

The charity could not operate without the assistance of a dedicated and loyal band of volunteers

who give up their time to help operate the Brora Heritage Centre.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The Charity engages in the following activities:

walks, talks, research, education, genealogy, publishing and operating Brora Heritage Centre.

During the year the Charity achieved the following:

- 8 evening lectures (average attendance 53)

- Guided walks for Highland Archaeology Festival and Brora Carnival Week

- Publication of annual magazine (76 pages)

- Involving volunteers in archive project

- Continuing in pursuing acquisition of premises

- General fund-raising

- Clyne War Memorial Centenary Tributes posted on Facebook

- Springtime tidying of local historic disused graveyard

- 4th year of operating Brora Heritage Centre on behalf of High Life Highland (April - October).

2590 walk-in visitors and a further 369 visitors attending events staged at the centre.

- Secured the partnership services of Robert Gordon's University, Aberdeen to develop an

interactive map of cultural heritage locations throughout the parish

- Planning for archaeological excavation at historic site at Greeanan, Strath Brora

- Planning and organisation for community conference on Salt Pans to be held in Brora in

September 2020.

- 2 articles regarding the Society and some of its specific activities appeared in the Scotsman

newspaper

A souvenir shop is operated in the Heritage Centre which, along with donations and member

subscriptions, contribute to the day to day running costs of the charity.

The Society has a membership of around 200 in a community of around 1000, indicating a

considerable measure of success.

Feedback from visitors to the Heritage Centre is encouraged on social media and also through a

visitor questionnaire.

FINANCIAL REVIEW

Financial position

The reduction in funding for museums from Highland Council is well documented and presents

major challenges for all small museums, not least Clyne Heritage Society in their role of running

the Brora Heritage Centre.

The trustees have been assured by Highlife Highland that funding will continue to the same extent

for 2020 season.

While the continuation of this funding is not guaranteed, there has been no indication that it is to be

withdrawn.'

The trustees are satisfied that the level of funds held at the year end are sufficient to enable the

charity to continue in the immediate future.

At the balance sheet date total funds held amount to £1,048,580 (2018 -£1,036,402), of which

£1,006,832 (2018 - £1,002,638) are restricted. Cash at bank amounts to £974,484 (2018 -

£1,042,037).

Principal funding sources

In April 2018 the charity received a £1,000,000 donation from SSE towards the refurbishment of

the Old Clyne School as a heritage centre. Rent has been received by the charity for the use of

the Old Clyne School grounds from a contractor engaged by Scottish Water during water mains

refurbishment.

Interest is earned on the balance held in the bank. At the balance sheet date, the amount held in

the fund for the refurbishment of the school is £1,006,832 (2018 - £1,002,638).

Reserves policy

The trustees have established a policy where the unrestricted funds held by the charity should be

at least three months of general expenditure. It is the view of the trustees that these reserves are

adequate for the charity to continue the current activities in the event of a sudden decrease in

income.

FUTURE PLANS

The trustees intend to continue the day to day operation of Brora Heritage Centre, on behalf of

High Life Highland, when this becomes possible, due to the lockdown caused by the Covid-19

virus regulations. A mutually beneficial agreement has been reached with High Life Highland, and

the service of heritage provision will be further expanded as a result.

Having been gifted the derelict Old Clyne School and £1M from SSE, the Trustees also continue to

pursue its ambition of opening its own Heritage Centre at the refurbished building. Architects have

been appointed and the final design is under review. Several professional surveys have been

carried out on the premises, in advance of submitting a planning application. A Feasibility Study

has also been carried out. A professional Fundraiser has also been appointed specifically to lever

funds for this project.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity operated as an unincorporated association governed by its constitution until it

incorporated on 15 February 2017.

The charity is controlled by its governing document, the Memorandum and Articles of the

Association of the company, and constitutes a limited company, limited by guarantee of £1 per

member, as defined by the Companies Act 2006.

Permission has been obtained from the registrar of Companies to omit the word "limited" from the

company's name.

Trustees

Board members are appointed as and when necessary at elections held at AGMs.

Organisational structure

The Society is managed by a Board of 8 Directors, who make all of the plans and decisions.

New Board members are handed an induction pack, both to familiarise themselves with the Society

and its rules and also for the Society to identify any gaps in skills which can be addressed by

training.

There is no remuneration of key management personnel.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to

ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

The trustees feel that they have considered all circumstances and identified and mitigated, to the

best of their ability, the risks to which the charity is exposed and will continue to review this on a

regular basis.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

SC557763 (Scotland)

Registered Charity number

SC028193

Registered office

Sunnybrae, West Clyne

Brora

Sutherland

KW9 6NH

Trustees

Dr N G Lindsay Chair

Dr J G Alderson Vice Chair

A G Bridges Secretary (resigned 1.5.19)

Ms C M Sinclair Treasurer

Mrs D A Ferne

Mrs J Baxter

A Campbell

W Armstrong (resigned 1.5.19)

J Cooke (appointed 1.5.19) (resigned 1.10.19)

Mrs C Gunn (appointed 1.5.19)

Trustee expenses represent reimbursement of out of pocket charity expenditure.

Independent Examiner

Marcus D MacIver, CA

Mackay & Co

Chartered Accountants

Unit 8

Golspie Business Park

Golspie

Sutherland

KW10 6UB

Approved by order of the board of trustees on 30 April 2020 and signed on its behalf by:

Dr N G Lindsay - Trustee

I report on the accounts for the year ended 31 December 2019 set out on pages six to seventeen.

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. The charity's 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 accounts as required under Section 44(1)(c) of the Act and to state whether particular

matters have come to my attention.

Basis of the independent examiner's report

My examination was carried out in accordance with Regulation 11 of the Charities Accounts

(Scotland) Regulations 2006. An examination includes a review of the accounting records kept by

the charity and a comparison of the accounts presented with those records. It also includes

consideration of any unusual items or disclosures in the accounts, and seeking explanations from

you as 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 accounts.

Independent examiner's statement

In connection with 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 which accord with the accounting records and to 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 accounts to be reached.

Marcus D MacIver, CA

Mackay & Co

Chartered Accountants

Unit 8

Golspie Business Park

Golspie

Sutherland

KW10 6UB

30 April 2020

31.12.19

31.12.18

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

3,362

1

3,363

2,977

Charitable activities

5

General

1,930

-

1,930

3,396

Trading

9,096

-

9,096

6,711

Brora Heritage Centre

-

7,000

7,000

7,000

Old Clyne School

-

-

-

1,000,000

Greeanan excavation

-

3,150

3,150

-

Other trading activities

3

912

-

912

726

Investment income

4

-

5,075

5,075

4,501

Total

15,300

15,226

30,526

1,025,311

EXPENDITURE ON

Charitable activities

6

General

2,307

-

2,307

14,963

Trading

5,322

-

5,322

3,901

Brora Heritage Centre

1,774

7,000

8,774

9,282

Old Clyne School

-

1,375

1,375

(2,937

)

Greeanan excavation

-

570

570

-

Total

9,403

8,945

18,348

25,209

NET INCOME

5,897

6,281

12,178

1,000,102

Transfers between funds

15

(493

)

493

-

-

Net movement in funds

5,404

6,774

12,178

1,000,102

RECONCILIATION OF FUNDS

Total funds brought forward

33,764

1,002,638

1,036,402

36,300

TOTAL FUNDS CARRIED FORWARD

39,168

1,009,412

1,048,580

1,036,402

31.12.19

31.12.18

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

12

312

-

312

390

CURRENT ASSETS

Debtors

13

-

74,624

74,624

1,380

Cash at bank

39,696

934,788

974,484

1,042,037

39,696

1,009,412

1,049,108

1,043,417

CREDITORS

Amounts falling due within one year

14

(840

)

-

(840

)

(7,405

)

NET CURRENT ASSETS

38,856

1,009,412

1,048,268

1,036,012

TOTAL ASSETS LESS CURRENT LIABILITIES

39,168

1,009,412

1,048,580

1,036,402

NET ASSETS

39,168

1,009,412

1,048,580

1,036,402

FUNDS

15

Unrestricted funds

39,168

33,764

Restricted funds

1,009,412

1,002,638

TOTAL FUNDS

1,048,580

1,036,402

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2019 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 30 April 2020 and were signed on its behalf by:

N G Lindsay - Trustee

C M Sinclair - Trustee

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under

FRS 102, have been prepared in accordance with the Charities SORP (FRS 102)

'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) (effective 1 January 2019)', Financial

Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and

Republic of Ireland' and the Companies Act 2006. The financial statements have been

prepared under the historical cost convention.

Income

All income is recognised in the Statement of Financial Activities once the charity has

entitlement to the funds, it is probable that the income will be received and the amount can

be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation

committing the charity to that expenditure, it is probable that a transfer of economic benefits

will be required in settlement 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 directly attributed to

particular headings they have been allocated to activities on a basis consistent with the use

of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its

estimated useful life.

Plant and machinery

-

20% on reducing balance

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion

of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the

charity. Restrictions arise when specified by the donor or when funds are raised for

particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the

financial statements.

2.	DONATIONS AND LEGACIES

31.12.19

31.12.18

£

£

Donations

3,318

2,977

Charities Trust income

45

-

3,363

2,977

3.	OTHER TRADING ACTIVITIES

31.12.19

31.12.18

£

£

Fundraising events

912

726

4.	INVESTMENT INCOME

31.12.19

31.12.18

£

£

Rents received

1,400

1,200

Deposit account interest

3,675

3,301

5,075

4,501

5.	INCOME FROM CHARITABLE ACTIVITIES

31.12.19

31.12.18

Activity

£

£

Other income

General

15

1,319

Subscriptions

General

1,915

2,077

Trading income

Trading

9,096

6,711

Grants

Brora Heritage Centre

7,000

7,000

Grants

Old Clyne School

-

1,000,000

Grants

Greeanan excavation

3,150

-

21,176

1,017,107

Grants received, included in the above, are as follows:

31.12.19

31.12.18

£

£

High Life Highland

7,000

7,000

SSE

3,150

1,000,000

10,150

1,007,000

6.	CHARITABLE ACTIVITIES COSTS

Support

Direct

costs (see

Costs

note 7)

Totals

£

£

£

General

1,071

1,236

2,307

Trading

5,322

-

5,322

Brora Heritage Centre

8,625

149

8,774

Old Clyne School

1,375

-

1,375

Greeanan excavation

570

-

570

16,963

1,385

18,348

7.	SUPPORT COSTS

Governance

costs

£

General

1,236

Brora Heritage Centre

149

1,385

8.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

31.12.19

31.12.18

£

£

Auditors' remuneration

-

4,800

Depreciation - owned assets

78

97

9.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended

31 December 2019 nor for the year ended 31 December 2018.

Trustees' expenses

The following expenses were paid to trustees as reimbursement for expenses incurred on

behalf of Clyne Heritage Society:

Trustee

31.12.19

31.12.18

£

£

N D Lindsay

1,296

1,684

10.	STAFF COSTS

31.12.19

31.12.18

£

£

Wages and salaries

7,202

8,378

7,202

8,378

The average monthly number of employees during the year was as follows:

31.12.19

31.12.18

Brora Heritage Centre

2

2

No employees received emoluments in excess of £60,000.

11.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

funds

funds

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2,977

-

2,977

Charitable activities

General

3,396

-

3,396

Trading

6,711

-

6,711

Brora Heritage Centre

-

7,000

7,000

Old Clyne School

-

1,000,000

1,000,000

Other trading activities

726

-

726

Investment income

-

4,501

4,501

Total

13,810

1,011,501

1,025,311

EXPENDITURE ON

Charitable activities

General

10,134

4,829

14,963

Trading

3,901

-

3,901

Brora Heritage Centre

904

8,378

9,282

Old Clyne School

-

(2,937

)

(2,937

)

Total

14,939

10,270

25,209

NET INCOME/(EXPENDITURE)

(1,129

)

1,001,231

1,000,102

RECONCILIATION OF FUNDS

Total funds brought forward

34,893

1,407

36,300

TOTAL FUNDS CARRIED FORWARD

33,764

1,002,638

1,036,402

12.	TANGIBLE FIXED ASSETS

Plant and

machinery

£

COST

At 1 January 2019 and 31 December 2019

608

DEPRECIATION

At 1 January 2019

218

Charge for year

78

At 31 December 2019

296

NET BOOK VALUE

At 31 December 2019

312

At 31 December 2018

390

13.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.19

31.12.18

£

£

Other debtors

-

1,380

Prepayments

74,624

-

74,624

1,380

14.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.19

31.12.18

£

£

Other creditors

-

1,801

Accrued expenses

840

5,604

840

7,405

15.	MOVEMENT IN FUNDS

Net

Transfers

movement

between

At

At 1.1.19

in funds

funds

31.12.19

£

£

£

£

Unrestricted funds

Clyne Heritage Society

25,492

319

-

25,811

Brora Heritage Centre

8,272

5,578

(493

)

13,357

33,764

5,897

(493

)

39,168

Restricted funds

Old Clyne School

1,002,638

3,701

493

1,006,832

Greeanan excavation

-

2,580

-

2,580

1,002,638

6,281

493

1,009,412

TOTAL FUNDS

1,036,402

12,178

-

1,048,580