Caithness Broch Project - Charities report - 21.1

REGISTERED COMPANY NUMBER: SC461601 (Scotland)

REGISTERED CHARITY NUMBER: SC46307

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 October 2020

for

Caithness Broch Project

Page

Report of the Trustees

1

to

3

Independent Examiner's Report

4

Statement of Financial Activities

5

Balance Sheet

6

to

7

Notes to the Financial Statements

8

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 31 October 2020. 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

To benefit the Caithness public by advancing education, community development, heritage, and culture, and the relief of poverty, and by encouraging people to learn about, record, and become involved in the heritage of Caithness 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) creating archaeological records from the company's activities (e.g. recording, surveying, excavation), for public access now and in the future (e.g. website, public 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;

(e) providing tools and knowledge to enable people to make contributions to, and manage their local heritage;

(f) working with other individuals, organisations, government bodies, quasiautonomous organisations, museums, schools and projects to further the above aims of the Caithness Broch Project;

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The pandemic has not slowed the project greatly and we are glad to report that none of us had covid. If anything, the push towards online meetings and presentations has saved time and money, and enabled us to widen our outreach programme of talks to new audiences around the UK and throughout the world.

Taking our AGM online was also deemed a success, again with a wide dispersion of participants.

We made slow but steady progress on our main project, building a replica broch. Our consultants are Hoskins Architects supported by Jura Consultants, Doig and Smith QS, and Cundall engineers. Two Hoskins architects paid us a visit to look at shortlisted sites, which we managed to accomplish while social distancing. This was inspirational for them and good team building for us. Progress was made on narrowing down the shortlist with the input of the consultant team. Their report is sitting as a draft until we further narrow the shortlist to make sure we can get the most out of this phase. The consultants have been very accommodating to our extended timescales.

We worked with Bob Marshall, historical reconstruction artist and illustrator, on the detail design of the broch and broch village. This is both a design exercise that will feed into the architectural and engineering designs, and also a graphical exercise for communication of our aims.

Our project to conserve the broch at Ousdale was completed over the winter of 2019, delivered late due to a late start, but under budget, and to the satisfaction of HES and the landowner. Some of the funding was reallocated for site maintenance and the installation of a CCTV camera which is our response to fly tipping in the new car park.

It was agreed at the last AGM to sell merchandise through a limited number of local shops on a more commercial basis. The other main change we have started to consider is drop-shipping merchandise from direct-to-garment printers, which means that we would no longer be keeping stock of most of our products. Managing stock has always been a problem for the Project. This will be sold through our new website. We have been communicating with various website designers about making us a new website to replace our current one, which has served us well but is not keeping up with our ambitions and the image we want to project.

Our fantasy-style map was readied for production and we took pre-orders to allow us to optimise printer costs and stock levels. We designed a tourist leaflet to showcase the map and tie into an online version which will launch properly with the new website.

FINANCIAL REVIEW

Financial position

Total income during the year was £162,317 (2019 - £53,401), expenditure was £171,870 (2019 - £11,458) leaving a deficit of £9,552 (2019 surplus - £41,943) for the year. We carried forward reserves of £34,763 (2019 - £44,315) 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.

STRUCTURE, GOVERNANCE AND MANAGEMENT

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. The committee is healthy with a total number of committee members of 16 of which 7 are Trustees.

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

C Aitken (appointed 6.12.19)

D C Mackay (appointed 6.12.19)

P Macrae (appointed 16.9.20)

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 17 June 2021 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 2020.

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

17 June 2021

31.10.20

31.10.19

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

4,361

1,775

6,136

19,494

Charitable activities

4

Lyth Arts & Archaeology Events

-

-

-

1,172

Ousdale

-

123,846

123,846

20,000

Achvarasdal

-

-

-

500

Other charitable activities

-

961

961

-

Project Development Brief

-

11,228

11,228

7,720

Other trading activities

3

20,146

-

20,146

4,515

Total

24,507

137,810

162,317

53,401

EXPENDITURE ON

Raising funds

4,687

570

5,257

1,623

Charitable activities

Lyth Arts & Archaeology Events

-

-

-

777

Ousdale

-

133,308

133,308

3,676

Other charitable activities

3,747

907

4,654

5,382

Project Development Brief

-

28,650

28,650

-

Total

8,434

163,435

171,869

11,458

NET INCOME/(EXPENDITURE)

16,073

(25,625

)

(9,552

)

41,943

Transfers between funds

12

(3,661

)

3,661

-

-

Net movement in funds

12,412

(21,964

)

(9,552

)

41,943

RECONCILIATION OF FUNDS

Total funds brought forward

6,115

38,200

44,315

2,372

TOTAL FUNDS CARRIED FORWARD

18,527

16,236

34,763

44,315

31.10.20

31.10.19

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

8

104

6,440

6,544

138

CURRENT ASSETS

Stocks

9

200

-

200

200

Cash at bank and in hand

19,111

49,796

68,907

45,053

19,311

49,796

69,107

45,253

CREDITORS

Amounts falling due within one year

10

(888

)

(40,000

)

(40,888

)

(1,076

)

NET CURRENT ASSETS

18,423

9,796

28,219

44,177

TOTAL ASSETS LESS CURRENT LIABILITIES

18,527

16,236

34,763

44,315

NET ASSETS

18,527

16,236

34,763

44,315

FUNDS

12

Unrestricted funds

18,527

6,115

Restricted funds

16,236

38,200

TOTAL FUNDS

34,763

44,315

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 October 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 October 2020 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 17 June 2021 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 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.

General Equipment

-

25% on reducing balance

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

31.10.20

31.10.19

£

£

Donations

3,626

15,504

Subscriptions

2,510

3,990

6,136

19,494

3.	OTHER TRADING ACTIVITIES

31.10.20

31.10.19

£

£

Shop income

20,146

4,515

4.	INCOME FROM CHARITABLE ACTIVITIES

31.10.20

31.10.19

Activity

£

£

Grants

Lyth Arts & Archaeology Events

-

1,172

Grants

Ousdale

123,846

20,000

Grants

Achvarasdal

-

500

Grants

Other charitable activities

961

-

Grants

Project Development Brief

11,228

7,720

136,035

29,392

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

31.10.20

31.10.19

£

£

The Highland Council

-

1,000

Historical Environment Scotland

55,870

-

Caithness & North

11,228

-

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

Leader

67,976

-

Your Cash, Your Caithness

961

-

136,035

29,392

5.	NET INCOME/(EXPENDITURE)

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

31.10.20

31.10.19

£

£

Depreciation - owned assets

34

1,000

6.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 October 2020 nor for the year ended 31 October 2019.

Trustees' expenses

The following expenses were paid to Trustees as reimbursement for expenses incurred on behalf of Caithness Broch Project:

TRUSTEE

31.10.20

31.10.19

I K Maclean

176.40

161.10

D Mackay

171.00

131.42

C Aitken

0

9.93

R Herrick

1,305.69

508.07

K McElroy

454.13

758.31

2,107.22

1,568.83

7.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

fund

funds

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

8,529

10,965

19,494

Charitable activities

Lyth Arts & Archaeology Events

-

1,172

1,172

Ousdale

-

20,000

20,000

Achvarasdal

-

500

500

Project Development Brief

-

7,720

7,720

Other trading activities

4,515

-

4,515

Total

13,044

40,357

53,401

EXPENDITURE ON

Raising funds

1,560

63

1,623

Charitable activities

Lyth Arts & Archaeology Events

-

777

777

Ousdale

-

3,676

3,676

Other charitable activities

5,382

-

5,382

Total

6,942

4,516

11,458

NET INCOME

6,102

35,841

41,943

Transfers between funds

(2,359

)

2,359

-

Net movement in funds

3,743

38,200

41,943

RECONCILIATION OF FUNDS

Total funds brought forward

2,372

-

2,372

TOTAL FUNDS CARRIED FORWARD

6,115

38,200

44,315

8.	TANGIBLE FIXED ASSETS

General

Computer

Equipment

equipment

Totals

£

£

£

COST

At 1 November 2019

520

2,375

2,895

Additions

6,440

-

6,440

Disposals

-

(2,649

)

(2,649

)

At 31 October 2020

6,960

(274

)

6,686

DEPRECIATION

At 1 November 2019

382

2,375

2,757

Charge for year

34

-

34

Eliminated on disposal

-

(2,649

)

(2,649

)

At 31 October 2020

416

(274

)

142

NET BOOK VALUE

At 31 October 2020

6,544

-

6,544

At 31 October 2019

138

-

138

9.

STOCKS

31.10.20

31.10.19

£

£

Stocks

200

200

10.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.10.20

31.10.19

£

£

Other loans (see note 11)

40,000

-

Accrued expenses

888

1,076

40,888

1,076

11.

LOANS

An analysis of the maturity of loans is given below:

31.10.20

31.10.19

£

£

Amounts falling due within one year on demand:

Highland Council bridging loan

40,000

-

12.	MOVEMENT IN FUNDS

Net

Transfers

At

movement

between

At

1.11.19

in funds

funds

31.10.20

£

£

£

£

Unrestricted funds

General fund

6,115

16,073

(3,661

)

18,527

Restricted funds

Lyth Art & Archaeology Events

-

(12

)

343

331

Project Development

18,634

(17,422

)

3,300

4,512

Achvarasdal

-

-

19

19

Maps and Leaflets

-

86

-

86

Ousdale Security Camera

-

1,743

-

1,743

Ousdale Broch

19,566

(10,020

)

(1

)

9,545

38,200

(25,625

)

3,661

16,236

TOTAL FUNDS

44,315

(9,552

)

-

34,763

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

24,507

(8,434

)

16,073

Restricted funds

Lyth Art & Archaeology Events

-

(12

)

(12

)

Project Development

11,228

(28,650

)

(17,422

)

Maps and Leaflets

961

(875

)

86

Ousdale Security Camera

1,775

(32

)

1,743

Ousdale Broch

123,846

(133,866

)

(10,020

)

137,810

(163,435

)

(25,625

)

TOTAL FUNDS

162,317

(171,869

)

(9,552

)

Comparatives for 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

Comparative 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

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

Net

Transfers

At

movement

between

At

1.11.18

in funds

funds

31.10.20

£

£

£

£

Unrestricted funds

General fund

2,372

22,175

(6,020

)

18,527

Restricted funds

Lyth Art & Archaeology Events

-

370

(39

)

331

Project Development

-

18,037

6,041

24,078

Achvarasdal

-

-

19

19

Maps and Leaflets

-

86

-

86

Ousdale Security Camera

-

1,743

-

1,743

Ousdale Broch

-

(10,020

)

(1

)

(10,021

)

-

10,216

6,020

16,236

TOTAL FUNDS

2,372

32,391

-

34,763