Caithness Broch Project - Charities report - 20.1.6

REGISTERED COMPANY NUMBER: SC461601 (Scotland)

REGISTERED CHARITY NUMBER: SC46307

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 October 2019

for

Caithness Broch Project

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

16

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 October 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 2015).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The overall objective of the Caithness Broch Project is to raise the potential of Caithness as a viable

heritage tourism destination and, thus, improve the region's economic sustainability. Caithness Broch

Project seek to achieve this through outreach events - to help build both tourist's and local's awareness

and interest in the archaeological landscape of Caithness - as well as through promotion, such as use of

social media, to help market the area.

As per Caithness Broch Project's articles of association, the company's objects are specifically restricted

to the following charitable purposes.-

The company has been formed to promote the benefit of the public within Caithness by advancing

education, community development, heritage and culture by working with individuals, local groups and

agencies in Caithness, and encouraging people to learn about, record, and become involved in their

heritage through -

(a) Providing opportunities for all ages and abilities to learn about the rich archaeological heritage of their

communities.

(b) Developing an understanding of the archaeological heritage through recreating a broch(s) or other

structures.

(c) Recording the past, with photographs, drawings, plans or memories. to be made as widely available

as possible on websites and local archives.

(d) Offering a range of activities to suit all interests and to allow progression including courses, above

ground surveys, excavation, post excavation activities and archival research, working in partnership with

other groups and societies.

(e) Providing tools and knowledge to enable people to make quality contributions to and to manage their

local heritage.

(f) Working with other individuals, organisations. museums, schools and projects to further the above

aims of the Caithness Broch Project.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

It was decided to progress our main project, building a replica broch, using an architect to phase the

work based on the RIBA Plan of Work 2013. The first two phases are "Strategic Definition" and

"Preparation and Brief". In line with this, we went out to tender to Scottish architects with the

specification to deliver a "Project Brief". We raised the money to fund this mainly through Crowdfunder,

Caithness and North Sutherland Fund (CNSF), and other sources including Your Cash Your Caithness,

Dunnet Bay Distillers, and Tesco. The work has progressed slowly, with care being taken over the

identification and assessment of potential sites. No invoices have been raised yet by the architect, so no

funds have been transferred from CNSF. The financial viability of the replica broch is a key consideration

in the work of the architect and their sub-contracted consultants.

Our project to conserve the broch at Ousdale is getting off to a slow start. The work is funded by Historic

Environment Scotland, the European Development Fund LEADER, and SSE. Negotiations with LEADER

are on-going to ensure that our costs are covered to the greatest extent possible and that our cashflow

will be managed. LEADER funds are transferred after payment of suppliers is made, which is of concern.

A no-interest £40k loan has been secured from the Highland Council to help with cashflow. The contract

for the stonemasons will be administered by a firm of consulting engineers. They will also provide

engineering supervision on site. The archaeology services have been tendered and the lowest cost

supplier selected. A drone survey was conducted free of charge by a local supplier. The path

construction works were tendered but due to changes in the specification from site meetings it has been

decided to retender this package.

Conservation work was carried out on Achvarasdal Broch. The main work took one day and involved the

Caithness Countryside Volunteers. Funding was provided by West Caithness Community Fund to cover

supplier costs.

CBP met with a windfarm developer who was offering a stable source of funding for local projects. While

the Project is glad to receive funding from windfarms and their community funds, it was not felt to be

appropriate for the Project to invest in a windfarm, which essentially what was on offer.

Merchandise sales included the regular stock (e.g. t-shirts) with additions of tea towels and a 2019

calendar. Because of the slow returns on investment in stock and the requirement to buy in quantity to

get good unit prices, purchase of new stock during 2019 has been paused to build up cash reserves to

help the Ousdale project. The business finds it difficult to balance choice of sizes and colours of t-shirts

for bulk orders, and suppliers offering manufacture to customer order and drop shipment were thought to

be too expensive on the sale price for the quality. A fantasy-style map of Caithness is being procured

from a map artist to promote Caithness attractions and to be used on merchandise.

CBP continued to give talks about archaeology, history, and CBP work and objectives within and outside

Caithness. We are now trying to proactively get the receiving group or venue to cover our travel costs in

these instances.

FINANCIAL REVIEW

Financial position

Total income during the year was £53,400 (2018 - £32,506), expenditure was £11,365 (2018 - £42,326)

leaving a of surplus of £42,035 (2018 - deficit of £(9,820)). for the year. We carried forward reserves of

£44,407 (2018 - £2,372) for the continuation of our projects and events and sustainability of the charity.

Reserves policy

The Directors have reviewed the reserves at the year end and of the opinion that they are sufficient to

cover the current project work, but will need to build up over future years in the expectation of managing

larger value projects of the charity going forward.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company,

limited by guarantee, as defined by the Companies Act 2006.

Charity constitution

The charity is a company limited by guarantee and is governed by its Memorandum and Articles of

Association.

Recruitment and appointment of new trustees

The methods used to recruit and appoint new charity trustees are identified in the Memorandum and

Articles of Association.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

SC461601 (Scotland)

Registered Charity number

SC46307

Registered office

50 Springpark Terrace

Thurso

Caithness

KW14 8NN

Trustees

R Herrick Chairman

J L Howdle-Orange

I K Maclean

K G McElroy

S Cowe (resigned 18.11.18)

L Poulsen (resigned 18.11.18)

C Aitken

D C Mackay

Independent Examiner

Marcus D. MacIver

CA (ICAS)

Mackay & Co

Chartered Accountants

Unit 8

Golspie Business Park

Golspie

Sutherland

KW10 6UB

Approved by order of the board of trustees on 16 June 2020 and signed on its behalf by:

R Herrick - Trustee

Independent examiner's report to the trustees of Caithness Broch Project ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended

31 October 2019.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you

are responsible for the preparation of the accounts in accordance with the requirements of the

Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16

of the 2006 Act and are eligible for independent examination, I report in respect of my examination of

your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In

carrying out my examination I have followed the Directions given by the Charity Commission under

section 145(5) (b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection

with the examination giving me cause to believe:

1.	accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

2.	the accounts do not accord with those records; or

3.	the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

4.

the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

I have no concerns and have come across no other matters in connection with the examination to which

attention should be drawn in this report in order to enable a proper understanding of the accounts to be

reached.

Marcus D. MacIver

CA (ICAS)

Mackay & Co

Chartered Accountants

Unit 8

Golspie Business Park

Golspie

Sutherland

KW10 6UB

16 June 2020

31.10.19

31.10.18

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

8,529

10,965

19,494

9,850

Charitable activities

4

Lyth Arts & Archaeology Events

-

1,172

1,172

10,000

Ousdale

-

20,000

20,000

-

Achvarasdal

-

500

500

-

Other charitable activities

-

-

-

10,840

Project Development Brief

-

7,720

7,720

-

Other trading activities

3

4,515

-

4,515

1,816

Total

13,044

40,357

53,401

32,506

EXPENDITURE ON

Raising funds

1,560

63

1,623

2,546

Charitable activities

Lyth Arts & Archaeology Events

-

777

777

-

Ousdale

-

3,676

3,676

-

Other charitable activities

5,382

-

5,382

39,780

Total

6,942

4,516

11,458

42,326

NET INCOME/(EXPENDITURE)

6,102

35,841

41,943

(9,820

)

Transfers between funds

11

(2,359

)

2,359

-

-

Net movement in funds

3,743

38,200

41,943

(9,820

)

RECONCILIATION OF FUNDS

Total funds brought forward

2,372

-

2,372

12,192

TOTAL FUNDS CARRIED FORWARD

6,115

38,200

44,315

2,372

31.10.19

31.10.18

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

8

138

-

138

1,138

CURRENT ASSETS

Stocks

9

200

-

200

200

Cash at bank and in hand

6,803

38,250

45,053

2,976

7,003

38,250

45,253

3,176

CREDITORS

Amounts falling due within one year

10

(1,026

)

(50

)

(1,076

)

(1,942

)

NET CURRENT ASSETS

5,977

38,200

44,177

1,234

TOTAL ASSETS LESS CURRENT LIABILITIES

6,115

38,200

44,315

2,372

NET ASSETS

6,115

38,200

44,315

2,372

FUNDS

11

Unrestricted funds

6,115

2,372

Restricted funds

38,200

-

TOTAL FUNDS

44,315

2,372

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

The members have not required the company to obtain an audit of its financial statements for the year ended 31 October 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 16 June 2020 and were signed on its behalf by:

R Herrick - 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 2015)', 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.

Computer equipment

-

33% on reducing balance

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for

obsolete and slow moving items.

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

31.10.19

31.10.18

£

£

Donations

15,504

5,005

Gift aid

-

632

Subscriptions

3,990

4,213

19,494

9,850

3.	OTHER TRADING ACTIVITIES

31.10.19

31.10.18

£

£

Shop income

4,515

1,816

4.	INCOME FROM CHARITABLE ACTIVITIES

31.10.19

31.10.18

Activity

£

£

Grants

Lyth Arts & Archaeology Events

1,172

10,000

Grants

Ousdale

20,000

-

Grants

Achvarasdal

500

-

Grants

Other charitable activities

-

10,840

Grants

Project Development Brief

7,720

-

29,392

20,840

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

31.10.19

31.10.18

£

£

The Highland Council

1,000

-

Historical Environment Scotland

-

4,840

Caithness & North

-

10,000

Baille Wind Farm

-

6,000

Beatrice Offshore Windfarm

20,000

-

Dunnet Bay Distillers

3,720

-

Groundworks UK

2,000

-

Ecclesiastical Insurance Group

1,000

-

West Caithness Community Fund

500

-

Stroupster Community Fund

1,172

-

29,392

20,840

5.	NET INCOME/(EXPENDITURE)

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

31.10.19

31.10.18

£

£

Depreciation - owned assets

1,000

965

6.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 October 2019 nor

for the year ended 31 October 2018.

Trustees' expenses

The following expenses were paid to Trustees as reimbursement for expenses incurred on behalf

of Caithness Broch Project:

TRUSTEE

31.10.19

I K MacLean

161.10

D Mackay

131.42

C Aitken

9.93

R Herrick

508.07

K McElroy

758.31

1,568.83

7.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

fund

funds

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

9,550

300

9,850

Charitable activities

Lyth Arts & Archaeology Events

-

10,000

10,000

Other charitable activities

3,840

7,000

10,840

Other trading activities

1,816

-

1,816

Total

15,206

17,300

32,506

EXPENDITURE ON

Raising funds

2,546

-

2,546

Charitable activities

Other charitable activities

15,898

23,882

39,780

Total

18,444

23,882

42,326

NET INCOME/(EXPENDITURE)

(3,238

)

(6,582

)

(9,820

)

Transfers between funds

(582

)

582

-

Net movement in funds

(3,820

)

(6,000

)

(9,820

)

RECONCILIATION OF FUNDS

Total funds brought forward

6,192

6,000

12,192

TOTAL FUNDS CARRIED FORWARD

2,372

-

2,372

8.	TANGIBLE FIXED ASSETS

Computer

equipment

£

COST

At 1 November 2018 and 31 October 2019

2,895

DEPRECIATION

At 1 November 2018

1,757

Charge for year

1,000

At 31 October 2019

2,757

NET BOOK VALUE

At 31 October 2019

138

At 31 October 2018

1,138

9.

STOCKS

31.10.19

31.10.18

£

£

Stocks

200

200

10.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.10.19

31.10.18

£

£

Accrued expenses

1,076

1,942

11.	MOVEMENT IN FUNDS

Net

Transfers

At

movement

between

At

1.11.18

in funds

funds

31.10.19

£

£

£

£

Unrestricted funds

General fund

2,372

6,102

(2,359

)

6,115

Restricted funds

Lyth Art & Archaeology Events

-

382

(382

)

-

Project Development

-

35,459

2,741

38,200

-

35,841

2,359

38,200

TOTAL FUNDS

2,372

41,943

-

44,315

Net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

13,044

(6,942

)

6,102

Restricted funds

Lyth Art & Archaeology Events

1,222

(840

)

382

Project Development

39,135

(3,676

)

35,459

40,357

(4,516

)

35,841

TOTAL FUNDS

53,401

(11,458

)

41,943

Comparatives for movement in funds

Net

Transfers

At

movement

between

At

1.11.17

in funds

funds

31.10.18

£

£

£

£

Unrestricted funds

General fund

6,192

(3,238

)

(582

)

2,372

Restricted funds

Lyth Art & Archaeology Events

6,000

10,300

(16,300

)

-

Project Development

-

(16,702

)

16,702

-

Travel

-

(180

)

180

-

6,000

(6,582

)

582

-

TOTAL FUNDS

12,192

(9,820

)

-

2,372

Comparative net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

15,206

(18,444

)

(3,238

)

Restricted funds

Lyth Art & Archaeology Events

10,300

-

10,300

Project Development

6,000

(22,702

)

(16,702

)

Travel

1,000

(1,180

)

(180

)

17,300

(23,882

)

(6,582

)

TOTAL FUNDS

32,506

(42,326

)

(9,820

)