The Trustees present their report and financial statements for the year ended 31 March 2021.
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 [governing document], 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 source. 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.
I ntroduction – Chair of Board
2020-21 was, despite the many challenges of the pandemic, a successful year for SSW.
Due to the COVID-19 pandemic the site was closed at various times, from March and December 2020, reopening in May 2021 with a new ceramics programme and Open Access residencies.
Despite this, a programme of activities including courses and projects has continued, though with limited capacity, including a series of significant international collaborations, and the introduction of a Caregivers Residency. We look forward to welcoming a new Programme and Communications Fellow to the staff team and hosting our rescheduled DIY artist onsite in 2021-22.
The capital development project in particular has been successful during a time of significant challenges, interruptions, and transitions. As Chair, and with my Vice Chair, Stephen Hodson Murray, I would like to acknowledge the ongoing commitment of everyone involved.
Staffing
Due to the Covid 19 pandemic all SSW staff have been furloughed at various times, to support continued employment, over the year. The SSW Director continued to work on reduced hours to save costs but ensure continued leadership and risk assessment of the situation, alongside the Board of Trustees and Office and Finance Manager.
Home working was implemented and new ways of connecting and operating were developed. This enabled the continuity of governance, administration, programme development and management of the site. Throughout the lockdown and re-opening periods, this challenge was met and is a tribute to the versatility and collegiate response of the staff and board team.
Due to the necessity of long-term technical support for health and safety and workshop maintenance the Trainee Technician role has been extended to a permanent contract as Technician for Michael Hautemulle in January 2021.
No Internship opportunities or work placements were possible.
Programme Overview
Open Access
Open Access has been central to our residency offer in 2020-21, as a flexible programme in between the COVID-19 lockdowns. With limited capacity on site, we have supported 10 artists to complete 74 days of Open Access (10.5 weeks) from September to December 2020 and in March 2021.
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Credit - Iron Pour at SSW (2019). Photo: Ki Dong Kwon
Courses
All Courses from 2020-21 were impacted by COVID-19 with cancellations and rescheduled activity in 2021 affecting our bronze courses. A new Introduction to Ceramics evening course proved popular, running over 4 weeks from November to December, together with our established programme of Large Hand Building, Alternative Firings and Introduction to Blacksmithing. All these courses ran with limited capacity to support our COVID-19 safety measures, at around 50 – 75%. All together we supported 19 participants to enjoy 43 days of teaching.
Ceramics
The ceramics programme has proved to be one of the hardest to adapt to the demands of COVID-19 due to the huge demand by our users and limitations of the workshop set up. Building on research undertaken in 2019-20, we used this year of forced closure to develop a new pilot programme for launching in spring 2021. Switching to a scale-able subscription model will offer users varying levels of access and skills development. Introducing a ‘Clay Shop’ and ‘Firing Service’ will allow the ceramics workshop to serve a wider usership beyond those who are using the workshop for production. We have seen a positive response to this programme so far with all spaces currently booked in anticipation of lockdown lifting.
Residency
We were unable to run our usual residency programme in 2020-21, taking the decision to cancel international artists’ residency and reschedule UK based artists’ residency into 2021-22, after multiple attempts to reschedule.
We were proud however, to develop a new funded Caregivers Residency programme, in partnership with Counterflows Festival. This programme will offer three artists with care giving responsibilities, flexible and bespoke month-long residencies to support their specific needs. As part of this process, we developed a new application and selection process, involving artists in the selection process. The first residency with artist Chris Dooks started in March 2021.
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Credit- SSW (2021). Photo: Zoë Tumika
Projects and events
Work on our EU Large Collaboration Project, Art Beyond Participation (BEPART) continued in 2020-21. BEPART is a 4 year collaborative programme developed by a network of 10 arts organisations across Europe, including SSW. Through BEPART we are exploring how artwork can be made collaboratively, by artists and citizens together. Through these relationships we want to consider how SSW works, who makes decisions and how we are governed. Work includes planning and research with artist collective Myvillages, towards a Fieldwork called The Rural School of Economics, and supporting the project evaluation with Dr Sophie Hope and Henry Mulhall.
DIY
This is the fourth year SSW has participated in the DIY network. It facilitates professional development, for artists, by artists, whose practices are grounded in unconventional approaches. This year, the DIY weekend itself is rescheduled into 2021-22 from November 2020. Despite this, there has been significant planning with the artist, Gordon Douglas, towards his DIY weekend, That’s Governance!
Other networks
Weston Jerwood Creative Bursaries
SSW is one of fifty organisations in the UK awarded a Weston Jerwood Creative Bursary to support a year’s employment for a Programme and Communications Fellow. This programme is designed to support early career artists, producers and creatives from lower-socio economic backgrounds to progress in their careers. In preparation for the placement, SSW board and staff members participated in an intensive organisational development programme with People Make It Work.
RESHAPE Network
SSW Director has continued to work in the European and South Mediterranean research network Reshape to develop and explore fairer governance in the arts.
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.
Not going back to normal
SSW is part of a consortium of arts organisations in Scotland to support Not going back to normal, a project by Harry Josephine Giles and Sasha Saben Callaghan and produced by Collective. The project will develop a manifesto for the arts from the perspective of disabled artists.
Capital Development
With planning permission in place RIBA Design Stage 4 - Technical Design is progressing well with good collaboration from the wider design team and SSW staff to refine the final design and specification details.
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Credit- Architect’s render of proposed development at SSW Image: Collective Architecture
Initial development will comprise of Phases 1A and 1B taking place in 2021-2022. This will include the following work: extending the capacity and improving the facilities of the ceramic workshop, a new public facing Community Maker Space will be developed in consultation with our wider communities, relocation of the current office to support better site navigation and refurbishment of artist accommodation upstairs at SSW’s main site. This will complete Phase 1A. Phase 1B will support a new accessible bedroom and bathroom facility alongside an upgraded kitchen with wheelchair accessible amenities. This will extend our residency offer to support wider access requirements for the first time.
With confirmed funding in place, to complete Phase 1A, progression to the next stage: building warrant and contractor tendering is underway. A Capital Cluster group is to be formed and will enable swift and informed decision making. This is the first step towards a more sustainable future for the SSW site and a very exciting development.
As at the balance sheet date the charitable company had total reserves of £530,112. This represents the unrestricted reserves of the charitable company. Of this amount, £253,917 was represented by fixed assets (buildings, equipment etc), with £66,941 being represented by restricted funds (funding which has been received for specific purposes. Accordingly, the sum of £209,254 is not freely available for use by the charitable company.
The remaining £209,254 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 £159,254 of free reserves at the balance sheet date.
It is the charitable company's policy to keep six months' worth of operating costs within its free and unrestricted reserves at all times. The purpose of this policy is intended to ensure continuity of operations in the event of funding shortages or delays in funding being received. This policy will also ensure an orderly closure of the charitable company in the event that for whatever reason it has to cease its activities. The trustees estimate that the charitable company's monthly running costs are approximately £22,500 (2020: £20,500) 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 £159,254. With the continuing Covid 19 pandemic, and repeated lockdowns arising, SSW are subject to unknown disruption to their planned programmes of activity. Budgetary caution has been taken, throughout the financial year 2020-21, to ensure staff retention and the continuity of SSW as a going concern. The trustees therefore believe that the current free reserves are sufficient.With the charity's premises being closed since March 2020, steps have been taken to minimise monthly operating costs and therefore the trustees believe that the free reserves are sufficient, but will continue to monitor the situation with regard to the ongoing uncertainty created by the Covid-19 pandemic.
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:
Dr Jen Clarke was voted in as the Chairperson in October 2020 alongside the Vice Chairperson, Stephen Hodsden Murray in December 2020. Jack Tan resigned in June 2020 along with Sue Savage who resigned as Chairperson in October 2020. We would like to thank them both for their time and valuable contributions during their term in office.
SSW’s Board of Trustees have worked consistently over 2020-21 to support and further the aims of the organisation with improvements to governance procedures and policies, board development, Capital programme support, and a review of recruitment policy and staff benefits. Board trustees have actively participated in a programme of EDI training alongside SSW staff to help inform the new business plan development for 2023 onwards.
The Board of Trustees would like to thank the staff team for their resilience in combating the difficulties associated with home working during the pandemic, on behalf of SSW.
SSW's Board of trustees have worked consistently over 2017-18 to support and further the aims of the organisation with improvements to governance procedures for board inductions and financial reporting. Three Board members stepped down this year Robert Collier, Lillian Wylie and Leanne Townsend (Secretary) and we thank them for their contribution to the organisation over their term of office. We are delighted to welcome two new members - Dr Jen Clarke from Gray's School of Art, and Sue Savege, Chief Executive of the Cabrach Trust and look forward to working with them over the coming year.
We have been working hard alongside the SSW Director and our current networks to engage with a new Chairperson, and are pleased to announce a temporary replacement has been found. When the new Chair takes up this post it will create a valuable opportunity to review board skills, governance procedures, roles of responsibility and sub group activity to move forward with.
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.
The Trustees r eport was approved by the Board of Trustees.
I report on the financial statements of the Charity for the year ended 31 March 2021, which are set out on pages 8 to 19.
The Charity’s Trustees, who are also the directors of The Scottish Sculpture Workshop for the purposes of company law, are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investments (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The Trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the 2006 Accounts Regulations does not apply. It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Act and to state whether particular matters have come to my attention.
My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeks explanations from the 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 financial statements.
In connection with my examination, no matter has come to my attention:
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 financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;
to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
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, 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.
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 net income/(expenditure) for the year.
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
Rates/Water & insurance
Telephone
Light & heat
Rent
Office costs & advertising
Sundries
Education/workshop expenses
Cleaning/laundry & waste disposal
Premises expenses
Travelling & conference fees
Artists fees & reimbursements
Stock purchases
Event/exhibition expenses
Staff development
Repairs & servicing
Bank charges
Consultancy fees
Independent examiners fee
Trustee expenses
There were £122 rustee expense paid.
The average monthly number of employees during the year was:
Bad Debts
There were no disclosable related party transactions during the year (2020 - none).