Clyne Heritage Society - Charities report - 22.2

REGISTERED COMPANY NUMBER: SC557763 (Scotland)

REGISTERED CHARITY NUMBER: SC028193

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 December 2022

for

Clyne Heritage Society

Page

Report of the Trustees

1

to

5

Independent Examiner's Report

6

Statement of Financial Activities

7

Balance Sheet

8

to

9

Notes to the Financial Statements

10

to

18

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 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

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

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The annual magazine 'The Clyne Chronicle' was published, as normal. The Brora Heritage Centre opened on April 15th and continued for the rest of the season until October 28th. Like-for-like figures with 2019 showed a slight decrease in visitors (mainly due to fewer events staged due to Covid), however, donations remained similar to previous years. Sales per head rose by 15%.

A very successful 7-day archaeological excavation of an 18thC longhouse at Greeanan, Strath Brora attracted 42 volunteer diggers in June 2022, who spent an average 3.4 days on site. There were also 80 visitors to the site, including pupils from Brora Primary School.

The Society participated in the Year of Scottish Stories project with Museums & Heritage Highland, with two podcasts of local Unforgotten Women, Megan Boyd and Caroline Ross, available on BBC Sounds.

The annual lecture syllabus restarted in September 2022 after Covid and attracted 95 people to the two talks, including an online audience.

CHS Board meetings continued by Zoom and a delayed Zoom AGM was held over to re-synchronise with its normal scheduled time of April 2022.

Activities for the Old Clyne School redevelopment project as a community heritage centre and museum continued:

Planning consent awarded Feb 2022,

Fundraising,

Museum Design, following community consultations.

Activity Plan commissioned, with input from community.

Normally the Charity engages in the following activities:

lectures, guided walks, research, education, genealogy, publishing, archaeological excavations and operating Brora Heritage Centre.

An outlet for the charity's retail books in the Otter's Couch shop in the village of Brora is operated which, along with donations and member subscriptions, contribute to the day to day running costs of the charity.

The Society had a membership of around 180 in a community of around 1000, indicating a considerable measure of success.

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 2023 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 £1,157,527 (2021 - £1,008,948), of which £1,121,252 (2021 - £958,915) are restricted. Cash at bank amounts to £939,183 (2021 - £858,784).

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 & Southern Electricity when delivering components for the Gordonbush wind farm extension in Strath Brora (received January 2022).

Interest is earned on the balance held in the bank. At the balance sheet date, the amount in the fund for the refurbishment of the school is £899,361 (2021 - £802,124).

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 will continue the day-to-day operation of Brora Heritage Centre, on behalf of High Life Highland, as it has done since 2016. A mutually beneficial agreement has been reached with High Life Highland, and the service of heritage provision will continue.

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. The design plans, approved by the membership, have received Planning and Building Warrant consent. Tenders were sent out to interested contractors and have been received. With sufficient funding matching the selected tender price, it is hoped that redevelopment of the currently derelict Old Clyne School will commence in Autumn 2023, with a proposed early 2025 opening.

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 normally managed by a Board of 8 Directors (although it is currently 11), 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

Sunnybottom, West Clyne

Brora

Sutherland

KW9 6NH

Trustees

Dr N G Lindsay Chair

Dr J G Alderson Vice Chair

Ms C M Sinclair Treasurer

Mrs D A Ferne

Ms J Baxter (resigned 11.5.22)

A Campbell (resigned 24.11.22)

Mrs L Graham

S Machin (resigned 24.11.22)

Ms D Evers Library And Search Room Manager (appointed 9.5.22)

Ms D Mackay Retired (appointed 19.5.22)

Ms S M Smith Ceo Cairngorm Mountain (Scotland) Ltd (appointed 5.5.22) (resigned 1.9.22)

Mrs R Greenhill (appointed 24.11.22)

G Greenhill (appointed 24.11.22)

Mrs E Lindsay (appointed 24.11.22)

A Gill (appointed 14.4.23)

Trustee expenses represent reimbursement of out of pocket charity expenditure.

Independent Examiner

Mackay & Co

Chartered Accountants

Unit 8

Golspie Business Park

Golspie

Sutherland

KW10 6UB

Approved by order of the board of trustees on 10 August 2023 and signed on its behalf by:

Dr N G Lindsay - Trustee

I report on the accounts for the year ended 31 December 2022 set out on pages seven to eighteen.

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.

Marcus D MacIver

The Institute of Chartered Accountants of Scotland

Mackay & Co

Chartered Accountants

Unit 8

Golspie Business Park

Golspie

Sutherland

KW10 6UB

10 August 2023

31.12.22

31.12.21

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

2,605

3,515

6,120

3,134

Charitable activities

4

General

4,610

-

4,610

7,107

Trading

11,570

1,230

12,800

12,491

Brora Heritage Centre

17,916

-

17,916

8,851

Old Clyne School

-

146,040

146,040

-

Investment income

3

-

11,641

11,641

1,095

Total

36,701

162,426

199,127

32,678

EXPENDITURE ON

Charitable activities

5

General

3,709

-

3,709

10,415

Trading

5,970

-

5,970

6,041

Brora Heritage Centre

21,991

-

21,991

10,204

Old Clyne School

-

13,748

13,748

39,713

Greeanan excavation

-

5,130

5,130

-

Total

31,670

18,878

50,548

66,373

NET INCOME/(EXPENDITURE)

5,031

143,548

148,579

(33,695

)

Transfers between funds

14

(18,789

)

18,789

-

-

Net movement in funds

(13,758

)

162,337

148,579

(33,695

)

RECONCILIATION OF FUNDS

Total funds brought forward

50,033

958,915

1,008,948

1,042,643

TOTAL FUNDS CARRIED FORWARD

36,275

1,121,252

1,157,527

1,008,948

31.12.22

31.12.21

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

11

249

150,917

151,166

150,206

CURRENT ASSETS

Debtors

12

-

68,019

68,019

33,438

Cash at bank

36,866

902,317

939,183

858,784

36,866

970,336

1,007,202

892,222

CREDITORS

Amounts falling due within one year

13

(840

)

(1

)

(841

)

(33,480

)

NET CURRENT ASSETS

36,026

970,335

1,006,361

858,742

TOTAL ASSETS LESS CURRENT LIABILITIES

36,275

1,121,252

1,157,527

1,008,948

NET ASSETS

36,275

1,121,252

1,157,527

1,008,948

FUNDS

14

Unrestricted funds

36,275

50,033

Restricted funds

1,121,252

958,915

TOTAL FUNDS

1,157,527

1,008,948

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

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 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 10 August 2023 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

31.12.22

31.12.21

£

£

Donations

6,120

3,134

3.	INVESTMENT INCOME

31.12.22

31.12.21

£

£

Rents received

8,700

-

Deposit account interest

2,941

1,095

11,641

1,095

4.	INCOME FROM CHARITABLE ACTIVITIES

31.12.22

31.12.21

Activity

£

£

Grants

General

2,919

5,357

Subscriptions

General

1,691

1,750

Trading income

Trading

12,800

12,491

Grants

Brora Heritage Centre

17,916

8,851

Other income

Old Clyne School

14,000

-

Grants

Old Clyne School

132,040

-

181,366

28,449

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

31.12.22

31.12.21

£

£

High Life Highland

7,000

7,000

Community Council

-

444

Highland Council

8,000

2,000

Architectural Heritages Fund

2,040

-

Museums Galleries Scotland

685

1,777

Kilbraur Wind Farm

-

2,987

EB Scotland

30,000

-

Garfield Weston Foundation

100,000

-

Gordonbush Windfarm

5,000

-

AIM

150

-

152,875

14,208

5.	CHARITABLE ACTIVITIES COSTS

Support

Direct

costs (see

Costs

note 6)

Totals

£

£

£

General

2,367

1,342

3,709

Trading

5,970

-

5,970

Brora Heritage Centre

21,991

-

21,991

Old Clyne School

411

13,337

13,748

Greeanan excavation

5,130

-

5,130

35,869

14,679

50,548

6.	SUPPORT COSTS

Governance

costs

£

General

1,342

Old Clyne School

13,337

14,679

7.	NET INCOME/(EXPENDITURE)

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

31.12.22

31.12.21

£

£

Depreciation - owned assets

40

50

8.	TRUSTEES' REMUNERATION AND BENEFITS

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

Trustees' expenses

The following expenses were paid to trustees as reimbursement for expenses incurred on behalf of Clyne Heritage Society:

Trustee

31.12.22

31.12.21

£

£

N G Lindsay

2,553.54

4,251.88

9.	STAFF COSTS

31.12.22

31.12.21

£

£

Wages and salaries

20,844

11,281

20,844

11,281

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

31.12.22

31.12.21

Brora Heritage Centre

2

3

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

10.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

funds

funds

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2,160

974

3,134

Charitable activities

General

7,107

-

7,107

Trading

11,719

772

12,491

Brora Heritage Centre

8,851

-

8,851

Investment income

-

1,095

1,095

Total

29,837

2,841

32,678

EXPENDITURE ON

Charitable activities

General

8,734

1,681

10,415

Trading

6,041

-

6,041

Brora Heritage Centre

10,204

-

10,204

Old Clyne School

-

39,713

39,713

Total

24,979

41,394

66,373

NET INCOME/(EXPENDITURE)

4,858

(38,553

)

(33,695

)

Transfers between funds

8,938

(8,938

)

-

Net movement in funds

13,796

(47,491

)

(33,695

)

RECONCILIATION OF FUNDS

Total funds brought forward

36,237

1,006,406

1,042,643

TOTAL FUNDS CARRIED FORWARD

50,033

958,915

1,008,948

11.	TANGIBLE FIXED ASSETS

Improvements

to

Plant and

property

machinery

Totals

£

£

£

COST

At 1 January 2022

150,007

608

150,615

Additions

1,000

-

1,000

At 31 December 2022

151,007

608

151,615

DEPRECIATION

At 1 January 2022

-

409

409

Charge for year

-

40

40

At 31 December 2022

-

449

449

NET BOOK VALUE

At 31 December 2022

151,007

159

151,166

At 31 December 2021

150,007

199

150,206

12.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.22

31.12.21

£

£

Other debtors

-

33,438

Prepaid construction costs

68,019

-

68,019

33,438

13.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.22

31.12.21

£

£

Trade creditors

1

-

Other creditors

-

2,640

Deferred income

-

30,000

Accrued expenses

840

840

841

33,480

14.	MOVEMENT IN FUNDS

Net

Transfers

movement

between

At

At 1.1.22

in funds

funds

31.12.22

£

£

£

£

Unrestricted funds

Clyne Heritage Society

32,786

1,515

(13,789

)

20,512

Brora Heritage Centre

17,247

3,516

(5,000

)

15,763

50,033

5,031

(18,789

)

36,275

Restricted funds

Brora Heritage Centre

2,956

-

-

2,956

Old Clyne School

952,879

148,678

16,739

1,118,296

Greeanan excavation

3,080

(5,130

)

2,050

-

958,915

143,548

18,789

1,121,252

TOTAL FUNDS

1,008,948

148,579

-

1,157,527

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

Clyne Heritage Society

5,224

(3,709

)

1,515

Brora Heritage Centre

31,477

(27,961

)

3,516

36,701

(31,670

)

5,031

Restricted funds

Old Clyne School

162,426

(13,748

)

148,678

Greeanan excavation

-

(5,130

)

(5,130

)

162,426

(18,878

)

143,548

TOTAL FUNDS

199,127

(50,548

)

148,579