Grantown Museum and Heritage Trust - Charities report - 22.2

REGISTERED COMPANY NUMBER: SC138200 (Scotland)

REGISTERED CHARITY NUMBER: SC005132

Report of the Trustees and

Unaudited Financial Statements For The Year Ended 31st March 2022

for

GRANTOWN MUSEUM AND HERITAGE TRUST

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

15

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 31st March 2022. 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

The principal activity of the charity is the presentation and preservation of the artefacts and history of grantown on Spey and the surrounding area.

The charity has established and operates a community based Heritage centre in Grantown-on-Spey which provides a Museum. In conjunction with the Grantown Society the charity provides facilities for family and local history researchers.

Achievement and performance

Charitable activities

This year saw the position of chair of the Museum & Heritage Trust change. After many years in position Seonaid Maclaren stood down from the chair and I took over from the Trustees' meeting in October. If you don't know me I am Duncan.

Season 2021-22 started with the Museum still in lockdown with the monthly Board meetings continuing by Zoom. The Museum was finally able to open on May 1st with masks, hand sanitising and social distancing in place. It seems such a long time ago now. In addition to the refurbished shop, Gallery 4 had been redeveloped with a Victorian theme, and we had costumes in place for our Adventures in Costume Project. We were one of fourteen museums participating in the Highland Threads Digital Exhibition run by Museums Heritage Highland, which launched in June - our exhibit was the wedding dress from Gallery 4.

We took the opportunity to alter our opening hours, closing on Tuesday and opening from 10-5 on weekdays and 11-3 on Saturday and Sunday, and were able to recruit new front of house volunteers. Our admin assistant, Margaret, was finally able to take up her post and we were able to employ someone for six months to work on the collection under the Kick Start scheme. We also decided to remain open until the Christmas fair, rather than closing at end of October. The idea was to recoup some of the revenue lost due to Covid, but it proved to be relatively ineffective as it was very quiet and won't be repeated this year.

New front and rear doors were fitted.

Events

The year started with "Adventures in Costume", something very unique and proving much more popular than I thought it would. This exhibition was brought back in August. That was followed by "Drawn from the past. Voices from Dava Moor". This proved to be a very successful exhibition and attracted much interest from local people. The accompanying book has had to be re-printed. During the school holidays we hosted an outdoor event "Time out of Time", with activities for kids in the garden, accompanied by Lady Caroline. The exhibition about Lady Caroline, "Searching for the Countess" ran during September, October and November. We tried a Car Boot Sale in October. It made money but it wasn't perhaps the most successful event ever.

Flat

After a burst pipe in the flat early in 2021 the directors were unhappy at the poor condition of the flat and we gave the tenant notice and took vacant possession in April. Much had to be spent on redecoration and after considering various options, including renting it out again, the Board agreed to Dan's request to try using the flat as an extension of the museum where we could hold other, more niche events and earn money that way. We agreed on a 12 month trial and as we are in that time period now the trial is still running. Those activities in the flat fall outwith the time of this report, which covers up to March 31st. But as an indication it has been used for Adventures in Costume, some walking and foraging, and some Clan Grant centred events. The refurbishment took a long time to get started, because of covid delays getting materials, but eventually it was finished early January. The total cost was just over £13k (of which £11k fell into this year's expenditure).

Board Changes

As mentioned I took over the role of chair from Seonaid in October 2021 and we then recruited 2 new directors to the Board. Francoise van Burren has retired from CNPA and brings experience of Marketing and Communication to the Board and Dr Steve Goodall, a long-time volunteer, brings his immense knowledge of history and antiquity.

This Current Year

It is odd writing a report in August which is only covering till the end of March, actually before we open for the season. There has been much activity since then, which will be properly detailed in next year's report, but I would like to mention some of what has been happening.

We have forged much closer links with the Clan Grant, and now we have a seat on the Clan Council. We are trying to position the Museum as the "come-to" destination for all the visiting Grant diaspora.

We have also established closer links with the Grantown Society and are holding joint meetings to share information and generally work together.

In late spring we accepted the resignation of Suzi Wilson from the Board. She is moving from the area. If this report was to rigidly follow the date of March 31st it would be 2023 before I could record my thanks to her officially and that would be too long a time scale. Her contribution to the Museum and Heritage Trust was immense: she was the instigator and the brains behind Adventures in Costume, the joiner who created the shop as it is now, the builder of the new shed and the project manager for the flat, and she remains the person who runs the website and the on-line shop. On behalf of the whole organisation I thank her most sincerely.

Big things are planned for 2023 and Dan has been working on that much of the time. It is too early to announce what is in the pipeline but suffice to say we are very excited about it. But of course the story won't appear until the Chairman's report of 2024. I wonder who will deliver that.

Financial review

Highlights

The last few years have been quite unlike any others, and this is reflected in some large swings in our income/expenditure account for the year. The year just gone (21/22) returned a negative surplus of income over expenditure of -£18,666; this compared with last year's figure of plus £19,079.

The large surplus in 2020/21 was largely due to the many generous grants which had no offsetting expenditure. In the year just ended, we received less in unrestricted grants and had increased expenditure: we invested £11k in refurbishing the flat, and we no longer had the rental income of £4k; in addition we had to shoulder the costs of council tax and water charges on the empty building, all of which came to around £18k, more or less equivalent to the size of the negative surplus.

Museum admissions returned to expected levels, and the shop performed well.

The movement of funds reflects these activities and shows a reduction in the general fund (the unrestricted funds available to the organisation) from £84,044 to £62,381).

We are grateful to our various funders - the Highland Council for their annual unrestricted grant; and to Museums Galleries Scotland, Berryburn, and the Kickstart programme for helping to fund projects. We are also, of course, grateful to people who have generously made donations to the Museum and have supported the museum's activities through their subscriptions and support of events.

We have continued to invest in the fabric of the Museum - its buildings and exhibitions, and over two difficult years have managed to remain in reasonably good financial health. Our physical assets remain intact, and where appropriate improved and repaired; however, our cash reserves have declined, and over the next few years we aim to increase our income to rebuild those reserves - that includes ensuring that the refurbished flat returns to generating significant income and holding exhibitions which are popular and well regarded and which attract large numbers of visitors.

Thanks

This is a voluntary organisation. It would not exist without the support of its members, and the doors could not open if it wasn't for the team of volunteers who come along and man the desk. It also needs the Board of Directors to be engaged and to give of their time, and two dedicated members of staff - Dan the manager/curator and Margaret the administrator/book-keeper- on whom we rely for their enormous dedication and expertise. To each and every person involved in any way I express my heartfelt thanks.

Reserves policy

The General Fund represents the unrestricted funds arising from past operating results. It also represents the free reserves of the charity, which include the unrestricted fixed assets. The trustees have examined the requirement to maintain free reserves and concluded that the most appropriate level is a minimum of 3 months operational expenditure. The trustees are satisfied that the balance of the fund meets this requirement.

Structure, governance and management

Governing document

The Trust, which is a recognised charity in Scotland, is incorporated as a company limited by guarantee. The management of the Trust is the responsibility of the trustees who are elected under the terms of the memorandum and articles of association.

Recruitment and appointment of new trustees

The Executive Board shall consist of not less than eight and not more than fifteen members (excluding the President and any Vice-Presidents) of whom three shall be elected by the members and one shall be nominated annually by Highland Council for a period of one year only.

Reference and administrative details

Registered Company number

SC138200 (Scotland)

Registered Charity number

SC005132

Registered office

Burnfield House

Burnfield Avenue

Grantown on Spey

PH26 3HH

Trustees

D H Grant - Chair

S McLaren

E J Hope

S Wilson

J Krawczynski

S Goodall (appointed 18.2.22)

Mrs F van Buuren (appointed 18.2.22)

Cllr B Lobban - The Highland Council

Company Secretary

D Cottam

Independent Examiner

Lorna Drummond FCCA

Goldwells

15-17 High Street

Kingussie

Inverness-Shire

PH21 1HS

Approved by order of the board of trustees on 15th September 2022 and signed on its behalf by:

D Cottam - Secretary

I report on the accounts for the year ended 31st March 2022 set out on pages six to fifteen.

Respective responsibilities of trustees and examiner

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 (as amended). 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.

Lorna Drummond FCCA

Goldwells

15-17 High Street

Kingussie

Inverness-Shire

PH21 1HS

15th December 2022

2022

2021

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

Notes

£

£

£

£

Income and endowments from

Donations and legacies

2

29,597

28,732

58,329

74,482

Other trading activities

3

11,772

-

11,772

8,280

Investment income

4

140

-

140

4,080

Total

41,509

28,732

70,241

86,842

Expenditure on

Raising funds

8,049

-

8,049

5,545

Charitable activities

Operation of museum and heritage centre

55,123

25,735

80,858

61,236

Support costs

-

-

-

981

Total

63,172

25,735

88,907

67,762

NET INCOME/(EXPENDITURE)

(21,663

)

2,997

(18,666

)

19,080

Reconciliation of funds

Total funds brought forward

84,044

89,230

173,274

154,194

Total funds carried forward

62,381

92,227

154,608

173,274

2022

2021

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

Notes

£

£

£

£

Fixed assets

Tangible assets

8

28,921

114,204

143,125

143,542

Current assets

Stocks

9

7,483

-

7,483

4,988

Debtors

10

6,330

-

6,330

7,455

Cash at bank and in hand

24,313

14,485

38,798

62,570

38,126

14,485

52,611

75,013

Creditors

Amounts falling due within one year

11

(4,666

)

-

(4,666

)

(4,154

)

Net current assets

33,460

14,485

47,945

70,859

Total assets less current liabilities

62,381

128,689

191,070

214,401

Accruals and deferred income

12

-

(36,462

)

(36,462

)

(41,127

)

NET ASSETS

62,381

92,227

154,608

173,274

Funds

13

Unrestricted funds

62,381

84,044

Restricted funds

92,227

89,230

Total funds

154,608

173,274

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st March 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st March 2022 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 15th September 2022 and were signed on its behalf by:

D H Grant - 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.

Freehold property

-

2.5% straight line basis

Plant and machinery

-

10% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Equipment

-

25% on cost

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

2022

2021

£

£

Donations

1,345

2,541

Gift aid

1,978

1,892

Grants

44,004

66,401

Subscriptions

879

3,648

Admissions

10,123

-

58,329

74,482

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

2022

2021

£

£

Highland Council

15,272

22,272

Museum Galleries Scotland

6,988

11,289

Berryburn

7,300

2,700

HMRC Job Retention Scheme

-

5,740

National Heritage

-

16,400

Visit Scotland

-

8,000

Kickstart

6,554

-

TOOT

7,890

-

44,004

66,401

3.	Other trading activities

2022

2021

£

£

Fundraising events

2,585

2,855

Shop income

7,469

1,369

Sundry income

1,718

4,056

11,772

8,280

4.	Investment income

2022

2021

£

£

Rents received

140

4,080

5.	Net income/(expenditure)

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

2022

2021

£

£

Depreciation - owned assets

9,311

9,201

6.	Trustees' remuneration and benefits

There were no trustees' remuneration or other benefits for the year ended 31st March 2022 nor for the year ended 31st March 2021.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31st March 2022 nor for the year ended 31st March 2021.

7.	Staff costs

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

2022

2021

Museum manager

1

1

Book-keeper

1

-

2

1

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

8.	Tangible fixed assets

Improvements

Freehold

to

Plant and

property

property

machinery

£

£

£

Cost

At 1st April 2021

242,587

50

381,977

Additions

-

6,462

320

At 31st March 2022

242,587

6,512

382,297

Depreciation

At 1st April 2021

138,358

50

342,664

Charge for year

4,852

-

3,931

At 31st March 2022

143,210

50

346,595

Net book value

At 31st March 2022

99,377

6,462

35,702

At 31st March 2021

104,229

-

39,313

Fixtures

and

fittings

Equipment

Totals

£

£

£

Cost

At 1st April 2021

-

35,913

660,527

Additions

2,112

-

8,894

At 31st March 2022

2,112

35,913

669,421

Depreciation

At 1st April 2021

-

35,913

516,985

Charge for year

528

-

9,311

At 31st March 2022

528

35,913

526,296

Net book value

At 31st March 2022

1,584

-

143,125

At 31st March 2021

-

-

143,542

Grantown Museum's collection of over 2000 artefacts, books, maps and photographs relate to the town and people of Grantown on Spey.

The collection is viewed by the public in both permanent and temporary exhibitions and objects in store are made available to scholars and researchers. loan boxes are borrowed by the local schools.

Items in the collection date from the 18th century right up the present day.

9.

Stocks

2022

2021

£

£

Stocks

7,483

4,988

10.	Debtors: amounts falling due within one year

2022

2021

£

£

VAT

2,561

274

Prepayments and accrued income

3,769

7,181

6,330

7,455

11.	Creditors: amounts falling due within one year

2022

2021

£

£

Trade creditors

2,449

2,131

Social security and other taxes

1,019

594

Other creditors

-

360

Accrued expenses

1,198

1,069

4,666

4,154

12.	Accruals and deferred income

2022

2021

£

£

Capital grant

36,462

41,127

13.	Movement in funds

Net

movement

At

At 1.4.21

in funds

31.3.22

£

£

£

Unrestricted funds

General fund

84,044

(21,663

)

62,381

Restricted funds

Restricted fund

5,335

6,052

11,387

Fixed Asset Fund

82,845

(3,055

)

79,790

Other Restricted Funds

250

-

250

Clock and tower fund

800

-

800

89,230

2,997

92,227

TOTAL FUNDS

173,274

(18,666

)

154,608

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

41,509

(63,172

)

(21,663

)

Restricted funds

Restricted fund

28,732

(22,680

)

6,052

Fixed Asset Fund

-

(3,055

)

(3,055

)

28,732

(25,735

)

2,997

TOTAL FUNDS

70,241

(88,907

)

(18,666

)

Comparatives for movement in funds

Net

movement

At

At 1.4.20

in funds

31.3.21

£

£

£

Unrestricted funds

General fund

63,092

20,952

84,044

Restricted funds

Restricted fund

4,152

1,183

5,335

Fixed Asset Fund

85,900

(3,055

)

82,845

Other Restricted Funds

250

-

250

Clock and tower fund

800

-

800

91,102

(1,872

)

89,230

TOTAL FUNDS

154,194

19,080

173,274

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

56,452

(35,500

)

20,952

Restricted funds

Restricted fund

30,390

(29,207

)

1,183

Fixed Asset Fund

-

(3,055

)

(3,055

)

30,390

(32,262

)

(1,872

)

TOTAL FUNDS

86,842

(67,762

)

19,080

A current year 12 months and prior year 12 months combined position is as follows:

Net

movement

At

At 1.4.20

in funds

31.3.22

£

£

£

Unrestricted funds

General fund

63,092

(711

)

62,381

Restricted funds

Restricted fund

4,152

7,235

11,387

Fixed Asset Fund

85,900

(6,110

)

79,790

Other Restricted Funds

250

-

250

Clock and tower fund

800

-

800

91,102

1,125

92,227

TOTAL FUNDS

154,194

414

154,608