SSW has achieved a great deal this year, working through some challenging contexts and conditions – not least due to the very welcome development and transformation of the physical site as part of the ongoing capital build, as well as Covid and staffing issues. Due to work undertaken as part of this project, SSW closed part of the site from October 2021 into 2022; however, a programme of activities and courses, and open access in the foundry, metal and forge areas, meant that access, with limited capacity, was maintained. In this time of transition, the organisation has developed, growing a pioneering new residency approach to caregivers, and piloting a new ceramics subscription programme. Staff and board have undertaken important training, and together the organisation has continued to develop a series of significant international collaborations. As Chair, I would like to acknowledge the ongoing commitment of everyone involved.
We would also like to thank our generous funders who have supported our work throughout 2021-22 including: Creative Scotland, William Grant Foundation, Creative Europe, William Syson Foundation, Hugh Fraser Foundation, Bently Foundation, Kildrummy, Lumsden and Towie Windfarms Fund through Foundation Scotland, The Saastamoinen Foundation and Aberdeenshire Council’s Marr Area Large Grants.
The Trustees present their annual report and financial statements for the year ended 31 March 2022.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's Memorandum and Articles of Association the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "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 ).
The charity's objectives are to provide the location, facilities and technical help to anyone interested in pursuing their sculpture practice. Based on these fundamentals, we seek to create opportunities for making sculpture, for exhibiting and siting sculpture and for increasing the public understanding and appreciation of sculpture. The charity raises funding for initiatives from a range of sources. The uses to which this funding can be put is usually restricted to the purposes for which it was sought.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake.
Fundraising
Fundraising has primarily focused on capital development over 2021-22.
Raising a total of £329,000 to support Phase 1 of the refurbishment work of our site in Lumsden. A mix of local, national and international funders provided grant support. The focus, to increase capacity in our ceramic studio, insulate and upgrade our onsite accommodation and relocate the staff office. This has enabled the creation of a new street facing community maker space (CMS) – an accessible, inviting and flexible area that will host creative activities, learning opportunities and events for local people and artists. This will also guarantee we can remain operational thoughout Phase 2 of our capital project – the upgrade of our Bothy facilities to offer accessible accommodation and a new build technical workshop facility.
Our new CMS programme of activities will be supported through our current Beyond Participation (Be Part) project, funded by Creative Europe over 4 years, ending in 2024 and 10K of our Bently Foundation grant. Local funding of 9K available to support community activity has also contributed to this new and exciting facility.
Other programme fundraising focussed on sustaining our offer of funded residency to support artists and makers with caregiving responsibilities. These funds will support organisational training, research support networks and improve access to our programme. Funds were gained through our continued partnership with AC Projects Counterflows £7K and a new fund from Creative Scotland – Radical Care £15K
Staffing
In April we welcomed Zoë Tumika to join the SSW staff team as our Programme and Communications Fellow supported by The Weston Jerwood Creative Bursaries. In July SSW Director Sam Trotman undertook a period of maternity leave. During this time Finance and Office Manager Sara Gallie stepped up and undertook the role of Executive Director. Additional duties were also given to SSW’s Senior Technician and Programme and Communications Manager over this period.
November 2021 marked the end of our Admin Assistant Rebecca Grant fixed term contract. Having reviewed the role, we advertised for a new Administration and Accounts position. Whilst we received a number of suitable applicants, we were unable to recruit at this stage.
Jane Robertson continued as SSW Capital Project Manager throughout this time.
Hybrid working continued throughout the year in order to limit numbers of staff exposed to the increased risk of Covid 19.
Training for all staff and Board in Equality, Diversity and Inclusion was delivered by Glasgow Women’s Library in April 2021. Full First Aid Training was also undertaken by the staff team.
Programme Overview
Open Access
Open Access continues to be an important part of our programme, especially for artists using the foundry, forge and wood workshops. It enables artists needing to undertake commissions or develop their skills in a way that fits their working schedules. This year we have supported 147.5 days of open access use by 33 artists. Through open access we have also supported projects including Cabrach Connections by Mary Bourne & Lynn Strachan, Caroline Wendling developing way markers with Deveron Projects and important research periods for artists and academics.
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Credit – Bronze Pour for Way Markers project (2021). Photo: Deveron Projects
Courses
Courses continue to be a great way for SSW to introduce our different processes to new users. This year we introduced a new course, Introduction to Forge and Foundry, which has proven hugely popular with users. Blacksmithing, Raku and Bronze continue to be some of the most popular processes undertaken by participants. This year we supported 38 people to enjoy 19 days of teaching.
Ceramics
We were excited to launch our new ceramics subscription programme pilot this year. For a 6 month period we trialed a new programme which was supported by a newly created online booking, calendar and payment system. The programme was fully subscribed to with users opting for access through regular or established practice routes. In addition we set up a clay shop and firing service for users to access materials and services outwith these routes.
Residency
This year we were able to support the majority of UK based artists to reschedule their residencies impacted by the Covid lockdown from 20-21. In addition to the Summer Residency we welcomed 3 SSW x Counterflows Caregivers Residencies. This pioneering new residency gained sector wide attention and press and provided funded support to artists Chris Dooks, Hang Linton and Laura Bradshaw. Following the success of this programme we were awarded additional support from Creative Scotland's Radical Care targeted fund to support the residencies to continue next year and to embed this work into our 2022-23 programme.
This year we also developed a new partnership residency with UniArts Helsinki and Cove Park supported by The Saastamoinen Foundation. This new collaborative residency offers alumni of the Academy of Fine Arts, Helsinki the opportunity to undertake an extended 16 week residency in Scotland working between Cove Park and SSW. The residency, entitled Ecologies of Making, focuses on making practices in a time of climate breakdown. The artist selected this year was Iisa Lepistö who will come to SSW in Autumn 2023.
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Credit: Lumsden Live FM community radio team (2021). Photo: Joanne Cairney
Projects & Networks
Be Part
This year marks the halfway point of our large EU collaboration project BE PART. Working across 10 European partners the project supports research and practice in developing the co-creation of art and developing the infrastructures needed to do this.
We kicked off the year with the first Assembly which was adapted from an in person gathering (due to Covid restrictions) to a live FM and digital broadcast community radio running 24/7 for 7 days.
The programme was developed and delivered by artist Mark Vernon and local co-creators working with SSW staff to develop all aspects of this Lumsden Live Assembly.
Broadcast from our street facing office we worked with over 218 co-creators in making the radio programmes and gained an audience of over 2,000 people.
Artist collective MyVillages continued to develop The Rural School of Economics throughout the year. Kathrin Böhm undertook her first residency and now focuses their work on the development of SSW’s new Community Maker Space. Director Sam Trotman and Kathrin Böhm also led a talk as part of the British Art Show. Jack Ky Tan undertook his fieldwork residencies during this time also working with local stakeholders and the SSW team. We also completed the first interim report for this Creative Europe project during this year.
RESHAPE Network
The Reshape network came to a close with the production of a final publication. Director Sam Trotman worked with fellow Reshapers Helga Baert and Martin Schick to publish their research paper Governance of The Possible. The publication was distributed widely across Europe and the MENA Region. Following this they presented this research at a range of spaces including Vooruit (Ghent) in collaboration with Kunstenpunt / Flanders Art Institute in January, Trigger Festival Ljubljana in February and for the Meanwhile In An Abandoned Warehouse podcast in March.
Scotland’s Workshops
SSW has continued to be active in the Scotland’s Workshops network, participating in the Directors meetings and sharing expertise and best practise as part of the communications, education and technician’s subgroups. The network was particularly valuable in providing both practical and advocacy support through Covid adaptation.
Talks
In addition to those outlined above Director Sam Trotman gave a range of talks in 21 prior to her maternity leave, including a talk for Shetland Arts on the SSW Capital project, a guest lecture at The Royal College of Art for the Contemporary Curating course, Roundtable discussion on reworking the workshop led by curator Marianne Mulvey and a public talk as part of The British Art Show.
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Credit: Site visit with Coldwells Building Company 2022. Photo: Jenny Salmean
Capital Development
We closed half of the SSW site in October 2021 to start the Phase 1 capital build led by Collective Architecture and project managed by Jane Robertson. With the impact of Brexit and Covids impact on the construction sector tenders for Phase 1 came in above budget and as such a period of value engineering took place throughout the winter. Following this we were able to successfully tender for a lead contractor and local firm Coldwells Building Company were contracted following a period of additional fundraising. The scope of work was slightly reduced with the biomass extension and Bothy redevelopment moved back into Phase 2 over the project. Work began to extend the capacity and improve the facilities of the ceramic workshop, develop a new public facing Community Maker Space, relocate the current office to support better site navigation and refurbish the artist accommodation.
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Credit: Work in progress at SSW 2022. Photo: Collective Architecture
As at the balance sheet date the charitable company had total reserves of £886,534. This represents the reserves of the charitable company. Of this amount, £257,159 was represented by fixed assets (buildings, equipment etc), with £390,606 being represented by restricted funds (funding which has been received for specific purposes. Accordingly, the sum of £238,769 is freely available for use by the charitable company.
The remaining £238,769 of unrestricted reserves therefore represents the free reserves of the charitable company. This amount is represented by cash in hand and at bank plus short-term amounts receivable less short-term amounts payable.
At the AGM in 2018 it was decided that £50,000 of the unrestricted reserves would be designated for the proposed future capital development of the charity's workshop and premises, for which plans have now been drawn up.
Taking account of this designation, the charitable company therefore has £188,769 of free reserves at the balance sheet date.
It is the charitable company’s policy to keep between three and six months’ worth of operating costs within its free and unrestricted reserves, at all times, which have not been designated for a specific use. The Trustees consider that reserves at this level will ensure continuity of operations in the event of a significant drop in funding, they will be able to continue the Charity’s current activities while consideration is given to ways in which additional funds may be raised. This policy will also ensure an orderly closure of the charitable company if for whatever reason it has to cease its activities. The Trustees estimate that the charitable company’s monthly running costs are approximately £22,500 (2021: £22,500) per month, including potential staff redundancy costs.
Therefore, the trustees estimate the running costs of the charitable company to be £135,000, which is slightly less than the current free reserves of £188,769. With the still ongoing disruption caused by the Covid 19 pandemic and the onset of Phase 1 of the capital refurbishment project, SSW have had to restrict numbers able to attend their planned programme of activities during 2021-22. The monitoring of monthly running costs and other budgetary caution has been taken, to ensure staff retention and the continuity of SSW as a going concern until their premises can fully reopen in 2022. The trustees therefore believe that the current free reserves are sufficient to comply with the reserves policy as stated.
SSWs aims and objectives as outlined in its business plan state:
Strategic Aim
To deliver artistic excellence through providing affordable, accessible, high-quality facilities and experiences that support the development of art practice and making skills for all.
Objectives
1. To provide opportunities for artists to achieve artistic excellence and extend their practices
through learning and critical exchange within our rural landscape
2. To ensure strong leadership, an able workforce, and strengthen staff capacity supported by
appropriate governance
3. To develop an inclusive and inviting, financially stable, and well-respected organisation
4. To extend our reach through increased visibility and impact
5. To embed equalities, diversity and inclusion into all aspects of our organisation and activities
In 2022-23 SSW looks forward to reopening its main site following a period of capital development.
Within our newly refurbished site SSW will re-open our ceramics programme to increased users and deliver a range of residencies including partnership residencies, group residencies and open access..
We look forward to launching our new Community Making Space supported by artists MyVillages and developed with the local community.
We will also be reviewing plans for Phase 2 of our site development including the foundry, red shed and Bothy.
As the Trustees of SSW we are looking forward to seeing the impact of the newly redeveloped facilities in particular the new Community Making Space. Over the past years SSW’s programme has opened up access to local communities through projects such as Forging Futures and Lumsden Live Radio. With the new space local people will have ongoing and well needed creative provision in Lumsden.
We are also looking forward to seeing the newly developed ceramics studio which foregrounds social gathering as well as a space to share technical expertise. Prior to the redevelopment SSW had long waiting lists for joining the ceramics programme - now with increased capacity we will be able to meet this need.
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.
The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Risk Management
Our organisational risk register is assessed and updated annually and reported to the Board as a standing item on the Board meeting agenda.
Priority areas of risk are currently identified as:
Staffing
Risk: Unable to offer salary increases due to restrictions on funding
Mitigation: Ensure staff receive other benefits e.g. more than industry holidays, staff gatherings and development opportunities. Strategic approach to fundraising to support this and plan for staff salary uplifts within the new business plan 2023-24 onwards. Benchmark salaries within our closest networks and commit to a minimum rate of the NLW.
Facilities
Risk: Inadequate facilities to deliver activity
Mitigation: Phased capital development programme and consistent assessment and maintenance of facilities including a modest ring fenced budget. Users' access is limited despite demand in order to lessen pressure on workshop areas. Phase 1 of the capital plan builds in resilience with additional space and capacity that will support continued activity and income during phase 2
Organisational Structure
HMRC recognised the company as a charity for tax purposes in line with Parargraph 1 of Schedule 6 Finance Act 2010 effective from 31 March 1983. The charity is also recognised as a registered charity by the Office of the Scottish Charities Regulator.
Trustees are recruited through open call. We aim for Trustees to undertake training within 6 months of joining the Board through Arts and Business Scotland’s - Introduction to Being A Board Member. All Board members are given access to a shared Board File online which provides a range of information including SSW policies, business and action plans. In addition this includes guidance on being a trustee from OSCR and Creative Scotland - Working Together and other related documents required to inform and advise trustees in their roles and responsibilities.
Trustees are included in other training sessions alongside staff in areas including Equalities, Diversity and Inclusion, for recruitment practices, Gender and Identity expression and organisational development.
-How decisions are made, what types of decisions are delegated. Strategic decisions are made at Board level. Operational decisions are delegated to the Director.
Remuneration Policy
Scottish Sculpture Workshop (SSW) operates an annual review system that includes market review and benchmarking within our sector before being considered for approval, this process ends in March. Changes are implemented from 1st April contingent on individual performance, budget affordability and retention issues
As part of a wider sector group of Creative Scotland RFO funded organisations we benchmark salaries which helps provide comparative rates for similar roles and informs decisions and future ambitions for setting fair rates of remuneration across our staff team, including key management roles. It also provides a platform for peer review and joint advocacy in this area. SSW provides a minimum rate of the National Living Wage
Relationship with Related Parties
here have been no related party transactions in the reporting period
In accordance with the company's articles, a resolution proposing that Whitelaw Wells be reappointed as auditor of the company will be put at a General Meeting.
The Trustees r eport was approved by the Board of Trustees.
The Trustees, who are also the directors of The Scottish Sculpture Workshop for the purpose of company law, are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement as to Disclose of Information to Auditors
So far as the Trustees are aware, there is no relevant audit information of which the charity’s auditors are unaware, and each Trustee has taken all the steps he ought to have taken as a Trustee in order to make themself aware of any relevant audit information and to establish that the charity’s auditors are aware of that information.
Opinion
We have audited the financial statements of The Scottish Sculpture Workshop (the ‘Charity’) for the year ended 31 March 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice) .
In our opinion, the financial statements:
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the Trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
We have nothing to report in respect of the following matters in relation to which the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:
the information given in the financial statements is inconsistent in any material respect with the Trustees r eport; or
proper accounting records have not been kept; or
the financial statements are not in agreement with the accounting records; or
we have not received all the information and explanations we require for our audit.
Other Matter
The comparative financial statements are unaudited.
As explained more fully in the s tatement of Trustees r esponsibilities, the Trustees, who are also the directors of the Charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Irregularities that result from fraud are inherently more difficult to detect than irregularities that result from error.
From enquiries of those charged with governance, it was determined that the risk of material misstatement from fraud was low with little scope for fraud to occur. Our audit testing is designed to detect material misstatements from fraud where there is not high level collusion.
Our audit testing was designed to detect material misstatements from other irregularities that result from error where there is not high level concealment of the error. In this regard the following audit work was undertaken: applicable laws and regulations were reviewed and discussed with management; senior management meeting minutes were reviewed; internal controls were reviewed; and journals were reviewed. From this audit testing it was determined that the risk of material misstatement in this regard was low.
We performed income and expenditure testing which was designed to identify any irregularities as a result of mistakes or human error. From this audit testing it was determined that the risk of material misstatement in this regard was low.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below .
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company’s members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Whitelaw Wells is eligible for appointment as auditor of the Charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The Scottish Sculpture Workshop is a private company limited by guarantee incorporated in Scotland. The registered office is 1 Main Street, Lumsden, Huntly, Aberdeenshire, AB54 4JN, Scotland. 1 Main Street, Lumsden, AB54 6JN.
The financial statements have been prepared in accordance with the Charity's constitution , the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "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)". The Charity is a Public Benefit Entity as defined by FRS 102.
The Charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling , which is the functional currency of the Charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .
Capitalisation of Equipment
All tangible assets with a useful life of more than one year and a acquisition cost of £100 or more will be capitalised and depreciated over its useful like using the appropriate method of depreciation.
At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell . Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Charity 's balance sheet when the Charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the Charity ’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Grants
Charitable Income
Charitable Income
Accommodation & workshop fees
Commission & services
Re-saleable stock items
Charitable Expenditure
Charitable Expenditure
Rates/Water & insurance
Telephone
Light & heat
Rent
Office costs & advertising
Sundries
Cleaning/laundry & waste disposal
Premises expenses
Travelling & conference fees
Artists fees & reimbursements
Purchases
Event/exhibition expenses
Staff development
Repairs & servicing
Bank charges
Consultancy fees
Independent examiners fee
Trustee expenses
Governance costs includes payments to the auditors of £4,500 (2021- £0) for audit fees.
Board expenses were £35 board meeting subsistence. S Murray received £107 travel and £75 gift (2021: £122)
The average monthly number of employees during the year was:
The charity considers its key management personnel comprise of Director and in 2021-22 Executive Director – Maternity Cover. The total employment benefits including employer pension contributions of the key management personnel was £58,353 (2021: £37,800). No employee had emoluments of more than £60,000 during either the current or previous year.
Bad Debts
The charity has committed to a building contract with an expected cost in the region of £250,000.
17 Main Street, Lumsden Huntley Aberdeenshire
Rolling Basis - 1 Month notice £500 per month
1 Main Street Lumsden Aberdeenshire
Lease period total of 91 years
Termination could take effect on every 15th anniversary from 31..03.2011 so commitment period up to 31.03.26 £8,000 plus vat = £9,600 per annum
Creative Europe - Be Part - a four year European collaborative programme that sets out to explore how artwork can be made collaboratively, by artists and citizens together.
Creative Scotland Strategic Fund - Radical Care - an action research project to try out new approaches to supporting those with caring responsibilities.
AC Projects - in support of Counterflows Caregiver Residency
Capital funding for Phase 1A of SSW site redevelopment
William Syson Foundation,
Bently Foundation,
Hugh Fraser Foundation,
William Grant Foundation,
Marr Area Large Grant from Aberdeenshire Council,
Kildrummy Wind Farm Community Benefit Fund and Foundation Scotland - for flooring in the new Community Making Space
The auditor's report was unqualified.
There were no disclosable related party transactions during the year (2021 - none) .