Annual report 2012

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Who runs the Society | Why we're here | What we've achieved | What we're planning | Finances | Examiners Report

President's Introduction

I have to say, it doesn’t feel like 5 years since I took over the reigns from Alan Smith, the previous President. In that time I’ve been very lucky in that there has always been an exceptionally good support team in the form of the Committee, all of whom have helped to make the running of the Society particularly smooth, thus making my part of the job decidedly straightforward and pleasant. I would especially like to pick out Ross Fowler for special mention for all his hard work in so many different aspects of the Society.

I have also been lucky in that I have been able to be partly responsible for helping to celebrate the remarkable milestone of Graham Reid’s Silver Jubilee as conductor. Graham has done so much for the Society over the last 25 years, anything that I have managed to do to recognise his efforts may be very small, but is with deeply heart-felt thanks.

There are major changes facing the Society in the near future. It looks very likely that we will have our first ever female president and our first new lead conductor for 25 years. Societies like ours need change in order to continue and to grow. If the water in the pond doesn’t change it will stagnate. However, particularly for a group like ours, we cannot afford to surge blindly forward without paying heed to what has gone before.

To paraphrase the wonderful author Terry Pratchett, “We have to know where we came from, because if we don’t know where we came from then we don’t know where we are, and if we don’t know where we are, then we don’t know where we are going, and if we don’t know where we are going, then we don’t know if we are going wrong.”

So by all means, lets embrace the future, embrace the change that’s coming, but don’t forget to keep at least half an eye on the past.

Graeme Henderson, President (2007-2012)

Annual Report

The committee present their report for the year ended 28 February 2012.

The members of the committee during the year were:

Original Committee Structure New Committee Structure

all resigned 30 May 2011
Office Bearers
President: Graeme Henderson
Vice President: Karen Gill
Secretary: Karen Gill
Assistant Secretary: Moira Mapley
Treasurer: Ross Fowler
Conductor: Graham Reid
Deputy conductor: Gordon Pirie
Assistant conductor: Sheila Reid
Pianist: Nick Cowling
Leader: Kim Beveridge

Other committee members
Kate Falconer, Laura McCracken,
Christine Marshall, Emma MacPherson,
Neil MacNeil, Karen Steed

all appointed 30 May 2011 (except where stated)
Office Bearers
President: Graeme Henderson
Vice President: Karen Gill
Secretary: Brian Priestley
Assistant Secretary: position vacant
Treasurer: Ross Fowler
Conductor: Graham Reid

Other committee members
Gloria Hay
Joanne Miller
Mhairi Shand (appointed 13 October 2011)

The committee is responsible for managing the affairs of the Society and is elected from the Society’s Life/Ordinary members at the Annual General Meeting. The committee was restructured during the year as detailed in the review of developments section. With effect from May 2011 all the committee are elected annually. The committee has the power to fill any vacancies arising during the year.

The induction process for committee members includes providing them with a copy of the latest full annual report and financial statements, the Constitution & Rules, and “Guidance for Charity Trustees” published by the Office of the Scottish Charity Regulator (OSCR).

The committee have regular formal meetings throughout the year and may also have ad-hoc meetings on rehearsal evenings as required.

The Society is an unincorporated association, governed by its Constitution & Rules, and is recognised as a charity by OSCR (Scottish Charity number SC011924) in accordance with the provisions of The Charities and Trustee Investment (Scotland) Act 2005.

Correspondence should be addressed to 129 Jesmond Avenue, Aberdeen, AB22 8UE or email secretary@aberdeenstrathspey.org.uk.

Objectives, policies and organisation

The objectives of the Society are established in its Constitution & Rules which were last amended on 30 May 2011. The Society is established:

  1. to form and maintain orchestras for promoting the practice and performance of primarily Scottish Music in order that:
    1. the community’s interest in such music shall be encouraged and advanced by way of private and public concerts given by the Society or under its auspices; and
    2. the playing of traditional music shall likewise be preserved and encouraged.
  2. to further any charitable purpose or purposes as the Committee in their absolute discretion shall think fit but in particular through the making of grants and donations.

How we achieve our objectives

Three orchestras are currently maintained - one for all playing members and two for junior members of different age groups. All rehearse on a weekly basis during school terms and perform primarily in and around Aberdeen. The concert session runs from the first Monday in September through to the end of May.

The Society performs at numerous public and private concerts which vary greatly in size during the concert session. The majority of these are a result of long established relationships with various groups including local churches, nursing homes, charities and other organisations. Concerts may be either for entertaining and/or fundraising purposes.

The committee works with both Aberdeen City Council and Aberdeen Performing Arts, which runs three of the major arts venues in Aberdeen, to identify opportunities for performances. The committee also organises and promotes the Society's own concerts. In addition orchestra trips either in the UK or internationally may be undertaken where resources and opportunities permit.

Applications for new membership are actively encouraged, 4 new member applications were approved during the financial year. The member categories and subscriptions received for 2011/12 are:

Category (those with a * have no voting rights) Annual Subscription Number of subscriptions
Honorary members* £nil n/a 
Life members (who have been members for at least 25 years)  £nil 7
Ordinary members (discounted by 50% if in receipt of a state pension) £20 52
Junior members (members under the age of 16 at the start of a session)* £10 8
Non playing members* £10 nil

An annual competition is held for members to promote and encourage the playing of Scottish music. The Awards Ceremony is held immediately before the AGM.

Category Awarded on 30 May 2011 to
Violin:
12 years and under - Jean Kidd Trophy
13 - 16 years - AS&RS Shield
Senior, Slow Air - AAF Trophy
Senior, March Strathspey & Reel - Les Wheeler Trophy

A Dreelan
S Bruce
N Cowling
S Reid
Accordion: Open age - Kenny Young Quaich M Donald
Violin, accordion or piano: Under 23 - Iain Fraser Award & Trophy S Bruce
Ensemble: Open age - Dave Beaton Trophy No Entries
Original composition: Open age - Caithness Bowl M Johnston

An annual trophy for the best junior all round achievement over the year, determined by the juniors’ conductor is also awarded. This was awarded to J Johnston on 30 May 2011.

The committee considers that organising a variety of social events throughout the year is integral to the maintenance of the orchestras. They include events that are open to any supporters of the Society and are intended to foster good relationships among orchestra members, their families and friends.

Where surplus funds exist the committee invites members to propose charitable causes that the Society may support by making grants or donations, such proposals are tabled at the AGM for approval by the membership as a whole.

Ensuring access to our activities

The committee ensures its activities are generally accessible through the following:

  • receiving only small donations towards our running costs from non-commercial and fundraising concerts;
  • ticket prices for concerts that the Society organises and promotes itself are normally set to ensure that the event will break-even, discounted concession tickets are usually available and prices are comparable to other similar arts events in the area;
  • membership subscriptions are approved by the playing membership as a whole at the AGM, with reference to our fixed rehearsal costs and available resources, including other funding sources from donations and commercial concert income. Discounted membership rates are available to those members under 16 or in receipt of a state pension. The committee is confident that subscriptions are at a low level and do not restrict access to membership;
  • by being as flexible as possible in accommodating a wide range of playing abilities within the orchestras whilst maintaining appropriate standards of public performance;
  • membership of the Society is open to both playing and non-playing members;
  • working with Aberdeen City Council to identify opportunities for free public performances by the orchestras, such as Aberdeen Tartan Day;
  • income from commercial events where the Society is not the promoter and does not control ticket prices helps balance our costs. 

Review of developments, activities and achievements

1
national award
7
fewer trustees
17
concerts
25th
concert season
for our
conductor
35
rehearsals
60th
anniversary
as a
charity
67
orchestra 
members
88
keys on
our new
stage piano
 £1,000
donated to charity
2,300+
people entertained  

Concerts

Fiddlers Spectacular poster - picture of violin in background with Caledon on stage in foregroundFiddlers' Spectacular at His Majesty's Theatre May 2011
Reel & Rowie Coffee Morning Poster - picture of violin in background with coffee cup and rowie in foregroundAudience feedback: "very enjoyable", "lovely atmosphere", "the music made you want to get up and dance"

The Society's orchestras have had a full programme of 17 performances throughout the year varying in both their size and venue. These would not have been possible without the continued support and contributions of the members. The highlights include:

  • The Fiddlers' Spectacular at Aberdeen His Majesty's Theatre which ran from 5-7 May 2011. A joint production with Banchory Strathspey & Reel Society the guests included Scotland's Three Tenors “Caledon”, comedian and broadcaster Fred MacAulay, Bucksburn & District Pipe Band and award winning accordionist Craig Paton. The show was well received in press reviews, though the audience numbers were disappointing; 
  • In August 2011 we performed in Union Terrace Gardens as part of Aberdeen's Tartan Day Festival;
  • The Society, along with guests from other societies, hosted the annual Fiddlers Rally at Aberdeen Music Hall in November 2011. Guests were Scottish soprano Richard Morrison and Scottish Dance Band the Tom Orr Trio. The Rally included a tribute to John Mason, who was the Society's Honorary President until he passed away in January 2011. Audience numbers were lower than in previous years;
  • January 2012 saw the Society celebrate its 60th anniversary as a Scottish Charity. As part of those celebrations we piloted a new format of concert the "Reel & Rowie Coffee Morning" designed to provide a relaxed, informal, family friendly introduction to the Society for new audiences as well as existing supporters. Based on audience feedback - first time attendees represented 45% of the audience survey data we collected - and a close to capacity hall, the event was a great success.

Throughout the year a number of small evening concerts were undertaken at sheltered housing complexes and churches. The Afternoon Group continued to entertain at hospitals, nursing homes and churches, lead this session by Dave Beaton and Sandy Lumsden.

Our achievements for the year, including a slight reduction in the number of non-commercial concerts, have to be considered in terms of the economic climate in which we continue to operate.

Two large care home operators entered into administration during the year, affecting homes at which the Society regularly performs. Anecdotal evidence suggests other operators and groups are also reducing their spending on entertaining in general and not just Society performances. The reduction in bookings from established relationships has been partly offset by other bookings, though some of these were for one-off events. The committee are actively monitoring the level of bookings.

Aberdeen City Council removed the St Andrew's Day celebrations from its Aberdeen Winter Festival activities and there were reductions in other elements of the Festival. Members of the Society have performed in the Festival previously.

Funding cuts and cost pressures on concert venue owners is resulting in higher venue charges for the Society and ticket price increases for audiences. Budget pressures at Aberdeen City Council have resulted in the extension of car park charges in Aberdeen city centre to after 6pm, further increasing the costs for audiences attending an evening event.

Given the current economic conditions we believe it is inevitable that audiences are re-evaluating their discretionary expenditure. This is considered a significant contributing factor to the smaller concert audiences observed during the year.

Higher parking costs and increasing transport costs also fall on the orchestra members and visiting performers to the Society's annual rally. The orchestra and visiting performers act on a voluntary basis and cover their own travel costs. We would like to thank all the fiddle and accordion players that continue to travel from across Scotland to support the Society's rally.

In spite of the economy, we believe that there is continued support and demand for traditional Scottish music from audiences in Aberdeen and our orchestras are delivering a high quality music experience.

The committee will continue to explore options for developing new audiences, as well as supporting our existing audiences through delivering both traditional and alternative performance formats. 

Other events and developments

President Graeme Henderson presents a £1,000 cheque to CLAN's fundraising managerPresident Graeme Henderson presents a £1,000 cheque to CLAN's fundraising manager

Supporting others

In March 2011 we presented a donation of £1,000 to CLAN (Cancer Link Aberdeen & North).

Governance and communications

As part of a governance review the committee considered it appropriate to reduce the committee size required by the Society's Constitution & Rules. In recent years it has been difficult to find willing volunteers from the orchestra to fill all the roles, and to co-ordinate meeting dates so everyone can attend and fulfil their trustee duties.

A revised and smaller committee structure of 9 trustees, a reduction from the previous 16, was proposed and approved at the AGM in May 2011. It is intended to make more use of sub-committees, which can include orchestra members not on the management committee, to increase flexibility and help spread the workload in the administration and activities of the Society. Certain positions that were on the committee continue in a non-committee role.

Graham Ward presents the Charities Online Financial Reporting AwardGraham Ward CBE presents the Charities Online Financial Reporting Award, Photo: ICAEW

The redevelopment of the Society website undertaken in previous years was partly to enable us to publish our annual report and financial statements online. This allows us to be open and transparent about how we spend our income and the results we have delivered.

In June 2011 the Society's annual report and financial statements (for the year ended 28 February 2010) were awarded 1st prize in their income category in the annual Charities Online Financial Reporting Awards (COFRA) run by the Institute of Chartered Accountants of England & Wales. The prize included a donation of £3,000, a certificate and logo to display on our website, as well as valuable feedback. Society Treasurer Ross Fowler attended the ceremony in London to collect the award.

The judges were impressed with our efforts, complimenting the online version on its interactivity and innovation. They considered that if there had been an overall winner from all five income categories (which included the top 100 UK charities) it would have been Aberdeen Strathspey & Reel Society.

Our 2011 annual report, which includes further interactive improvements, has been submitted for consideration in the next annual COFRA awards to be announced in June 2012. We'll also publish this 2012 report online in the next few months.

The award gives us assurance that we're delivering on our reporting aims. However, please contact us if you have any suggestions, feedback or queries on this or our previous reports.

Fundraising

Donate £2 by Texting "REEL01 £2" to 70070You can now donate to the
Society by text message

During the year we joined Vodafone's JustTextGiving scheme. This allows charities and non-profit groups to receive donations via text message. There is currently no cost to the Society for being part of the scheme, we receive 100% of the donation and the only cost to the donor is the amount that they wish to donate.

In June 2011 Aberdeen music store Bruce Miller closed its doors for the final time, bringing to an end 111 years of trading. The Society has had a long association with Bruce Miller, they were the stockist of our first album when it was released in 1932 and more recently stocked the Society's three CDs. The store was also the source of violin strings, rosin for bows, music books and accessories for the orchestra members and will be much missed.

Following Bruce Miller's closure the committee sought alternative CD stockists and we're pleased to announce that the gift shop at Charles Michie, another Aberdeen retailer, began stocking the Society's CDs in November 2011.

Other items

Conductor Graham Reid cutting his 25th concert season celebration cakeConductor Graham Reid, with his wife Sheila, cuts his 25th concert season celebration cake

The 2011/12 concert season is conductor Graham Reid's 25th. The Society marked the milestone with both a celebration cake and a gift of an engraved hip flask, which was presented to Graham during the Fiddlers' Rally in November 2011 YouTube Logo. Graham is the longest serving of any the Society's conductors. The members cannot thank him enough for all his hard work, dedication and enthusiasm over the past 25 years.

The Society continues to be a member of Making Music, a charity which provides information, support and other services to voluntary music groups, including arranging the Society's block insurance cover.

On the social front in addition to the annual Christmas Party another event in the form of a Race Night was organised in May 2011. Both were enjoyed by all that attended.

Our thanks go to all members, old and new, who give their time freely to play at the many concerts held during the year and help in various ways to keep the Society running so smoothly. 

Future plans

Final rehearsals and preparations are underway for the Society's “Scottish Music Evening” concert at the Lemon Tree on 29 April 2012.

We plan on appearing in the second Celebrate Aberdeen parade on 9 June 2012. The aim of the parade is to involve and showcase the many community organisations based in the City of Aberdeen.

The Fiddlers' Rally at Aberdeen Music Hall, which the Society hosts, has been confirmed for Saturday 10 November 2012.

We have applied to participate in the Bandstand Marathon on 9 September 2012. The Bandstand Marathon forms part of the 2012 Cultural Olympiad and is intended to encourage musical performances in open public spaces across the UK.

Finances, Investment and Reserves Policy

Finances

The review below and the attached financial statements show the current finances of the Society. The highlights are:

  • a total surplus (including investment gains) for the year of £2,469 (2011: total deficit of £829);
  • fixed asset purchases of £1,358, including a new digital stage piano;
  • the committee approved a revised investment policy and selected a Common Investment Fund to hold long term funds including endowed funds;
  • the general fund has net cash resources1 at 28 February 2012 of £15,107;

Summary of income and expenditure and other gains/losses info symbol

 
 

Hover the cursor over a category to display the related annual report explanation. Click a legend item to show/hide that series.

 

Significant changes in income less expenditure and other gains/losses: £
Net deficit for year to 28 February 2011 (829)
Increase in donations income +3,658
Increase in donations expenditure (1,000)
Reduction in subsidy on Tours & trips +1,048
Increase in Governance costs (316)
Net impact of other changes in income, expenditure and other gains (92)
Net surplus for year to 28 February 2012 +2,469

The results for the year include a number of one-off income and expenditure items. The committee consider the recurring income and expenditure of the Society to be broadly balanced.

Analysis of income categories which have corresponding expenditure

 
 
 

Concert income and expenditure varies based on the number of events and whether the Society is the promoter of the event, or receives an appearance fee from the promoter. Due to the May 2011 Fiddlers' Spectacular the Society did not promote an equivalent to the Scottish Music Evening, which was held in the previous financial year, though we did promote the Reel & Rowie Coffee Morning this year. Audience numbers for the Spectacular were low and we received only a small appearance fee

In addition other commercial concert bookings were lower, mainly due to council cutbacks. In addition to the differences in concerts promoted, prior year concert expenditure included a fiddle workshop with no equivalent in the current year. Instruments depreciation is higher this year following the purchase of a new stage piano. Overall the surplus from Concerts & competitions was £318 lower.

There were no tours or trips undertaken during the financial year resulting in nil income and expenditure, the Shetland Festival trip in October 2010 and associated travel cost subsidy of £1,048 was included in the previous financial year.

Fundraising income and expenditure is lower as last financial year included a raffle held at the Scottish Music Evening concert, with no equivalent in the current year. In addition there were fewer CD sales in the year and a further reduction in the value of the stocks was booked. This was partly offset by increased income from easyfundraising associated with members' online shopping. Overall the surplus from fundraising was £113 lower.

Social events income and expenditure is higher as a result of the increased attendance at the annual Christmas Ceilidh party and the inclusion of a Race Night as an additional event in the current year. The deficit on Social events has reduced £62.

Income categories & other gains which don't have corresponding expenditure

 

Expenditure categories which don't have corresponding income

 
 

Donations income has increased £3,658 due to one-off donations including the Charities Online Financial Reporting Award prize of £3,000 plus an associated subscription, as well as a donation from ConocoPhillips for £500. As noted in our achievements there were slightly fewer non-commercial performances, though some of those we performed at resulted in higher than average donations

Members subscriptions this year are £161 higher primarily due to the receipt of several late subscriptions in relation to the previous 2010/11 membership year.

Investment income is higher by £55. Through selecting a new deposit account provider and increasing the amounts on fixed term deposit the average interest rate achieved for the year has increased. In addition our bank balances have been higher through the year compared to last year, and the revised investment policy on long term funds including endowed funds also increased investment income.

Rehearsal premises costs are slightly higher by £92. The increase would have been more due to higher rent charges, but this was offset by a small reduction in the length of each weekly let for the adult orchestra. The premises are let from Aberdeen City Council and their current policy is to increase rent charges annually in line with inflation.

Donation expenditure consists of a £1,000 donation to CLAN (Cancer Link Aberdeen & North), an Aberdeen based cancer support charity, which was agreed at the AGM in May 2010 and for which a designated fund was in place. There was no corresponding donation expenditure in the prior year.

Admin and other costs are £131 lower as last year included additional depreciation charges associated with the disposal of a photocopier. In addition expenses claimed by committee members allocated to Admin and other costs are lower this year.

Governance costs are higher by £316 primarily due to travel costs for attending the Charities Online Financial Reporting Award ceremony and the inclusion of the value of a donated subscription that formed part of the award prize.

Balance sheet items

 

The net cash resources of the General fund is £15,107 an increase of £2,346. This reflects the £3,292 surplus on the General fund for the year (after adjusting for non-cash items and other movements in current assets and current liabilities) less fixed asset purchases of £1,358. Fixed asset purchases include a new portable stage piano which offers better sound quality and increased volume without additional amplification.

During the year Standard Life Cash Savings ceased offering fixed rate deposit products. The committee reviewed alternative fixed rate deposit providers and selected Julian Hodge Bank. After considering the available cash resources and forward plans the amount held on fixed term deposit was increased to £6,000 to take advantage of the higher interest rates available.

Debtors and creditors balances includes, respectively, prepayments of production costs and deferred income from advance ticket sales associated with the Scottish Music Evening planned for April 2012.

Contributions from volunteers

The members of the orchestra volunteer their time through weekly rehearsals, attending concerts and assisting with fundraising efforts.

Investments

A revised investment policy was approved by the committee in March 2011 as follows:

  • Short to medium term funds are likely to be spent within the next five years. The funds will be invested in high interest deposit accounts which may be of a fixed term nature. The aim of such investments is to achieve the best available income returns, whilst minimising risk to capital and ensuring the cashflow requirements of the Society are met.
  • Long term funds, including the endowment funds, are not required to be spent within the next five years. They will be invested in collective investment schemes which seek income and long-term capital growth from a broadly diversified portfolio of assets including equities and fixed interest securities.

In applying the above policy the committee has agreed to invest long term funds, including the Iain Fraser Award Endowment Fund, in the Alpha Common Investment Fund for Income & Reserves managed by Sarasin Investment Funds Ltd. The fund is a charity in its own right and offers the benefits of pooled investments to other charities.

Through a single investment the fund provides a diversified portfolio with a broad spread of asset classes across several countries and professional investment management at low cost.

The selected fund is conservative with an emphasis on capital preservation and generating a high income. It typically holds 80% of the portfolio in fixed interest bonds and cash, with the balance held in equities and other investments.

Although the Society does not have any ethical constraints as part of its own investment policy the selected fund does operate an ethical investment policy, including a restriction on investing in tobacco companies. Sarasin have stated in their view this does not have a detrimental impact on returns.

The fund manager has established a composite performance benchmark based on published UK and global indices including gilts (60%), shares (20%), corporate bonds (15%) and cash deposits (5%).

The capital value of the fund has increased (after charges) by 2.2% since purchase in April 2011. Due to purchase timing only three of the fund’s quarterly dividends are included within the financial year. The target income yield is approximately 4.25%.

The change in investment policy has enabled a 43% increase in the Iain Fraser Prize paid in the year. A further increase is anticipated for the next prize award as the funds will have benefited from a full year of dividend income.

Information on the current allocation of the fund by both investment asset type and geography is published on the Society's website under the About Us / Policies / Investments section.

Reserves

The Society holds endowed, restricted and unrestricted funds (the attached financial statements detail these funds). Unrestricted funds are held:

  • to provide funds which can be designated to specific projects such as concerts and competitions in the UK or abroad. Such events may arise at relatively short notice;
  • to cover ongoing costs in relation to the running of the Society including rent of rehearsal premises, performing at concerts or competitions, and administration costs.

The amount and timing of certain sources of income is variable in nature. Expenditure, particularly relating to concerts, may be committed in advance of knowing total income from an event. The committee therefore considers it prudent to hold unrestricted reserves in the form of net current assets excluding stocks of £7,500.

This is considered sufficient to cover:

  • two years’ costs of rehearsal premises and administration costs - approximately £2,500 per annum;
  • potential deficits on concerts that the Society organises itself – equivalent to the production and marketing costs, excluding any ticket or other income, estimated as £1,000;
  • replacement instruments or administrative fixed assets, estimated at £500;
  • funds which can be designated for a single specific concert or competition event in the UK, based on prior events estimated at £1,000.

The net current assets excluding stocks of the unrestricted general purposes fund reported in the attached financial statements total £15,107 and therefore are considered to be above the level of reserves required for the ongoing needs of the Society. The committee continues to consider additional activities related to the Society’s objectives to which the excess reserves may be applied including:

  • other concert events in which the Society may participate, so funds may be specifically designated;
  • audience development projects and related activities.

In addition a designated fund has been established for a replacement stage piano. It is intended to increase the fund by £150 per year, plus associated interest income, over a 10 year period ending in 2021, by which time the current stage piano is expected to be at the end of its useful life.

The level of reserves are reviewed by the committee regularly throughout the year. The minimum level of reserves for the ongoing needs of the Society is reviewed by the committee on an annual basis.

Other reference and admin details

Bankers - current accounts:

CAF Bank, 25 Kings Hill Avenue, Kings Hill, West Malling, Kent, ME19 4JQ
Bank of Scotland, 54 John Street, Aberdeen, AB25 1LL

Bankers - deposit accounts:

Julian Hodge Bank, 29 Windsor Place, Cardiff, CF10 3BZ
Scottish Widows Bank, 67 Morrison Street, Edinburgh, EH3 8YJ  

The Alpha CIF Income & Reserves investment manager is  :

Sarasin Investment Funds Ltd, 100 St Paul's Churchyard, London, EC4M 8BU

The Independent Examiner is:

Graeme Reid, Williamson & Dunn Chartered Accountants
3 West Craibstone Street, Bon-Accord Square, Aberdeen, AB11 6YW

Basis of Preparation

This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (issued in March 2005), The Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006.

Approved by the committee and signed for and on their behalf by:

B Priestley, Secretary
29 April 2012

Statement of committee members’ responsibilities as trustees

Law applicable to charities in Scotland requires the trustees to prepare financial statements for each financial year which give a true and fair view of the charity’s financial activities during the year and of its financial position at the end of the year. In preparing financial statements giving a true and fair view, the trustees should follow best practice and:

  • select suitable accounting policies and then apply them consistently;
  • make judgements and estimates that are reasonable and prudent;
  • prepare the financial statements on a going concern basis unless it is inappropriate to presume the charity will continue in operation.

The trustees are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the charity and which enable them to ensure that the financial statements comply with The Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 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.


Footnote 1: Calculated as cash and bank balances after adding debtors balances and deducting creditors balances.

 

Report of the independent examiner

to the trustees of Aberdeen Strathspey & Reel Society

I report on the accounts of the Society for the year ended 28 February 2012 which are set out on pages 13 to 22.

Respective responsibilities of trustees and examiner

As outlined on page 11 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. The charity 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 independent examiner’s statement

My examination is 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 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 accounts.

Independent examiner’s statement

In the course of my examination, no matter has come to my attention:

  1. which gives me reasonable cause to believe that in any material respect the requirements:
    1. to keep accounting records in accordance with Section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations, and
    2. to prepare accounts which accord with the accounting records and 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.

Graeme Reid, CA
29 April 2012

Williamson & Dunn Chartered Accountants
3 West Craibstone Street
Bon-Accord Square
Aberdeen
AB11 6YW

Please note the independent examiners report that is reproduced above relates to the review of the PDF print version of the accounts. The examiner has not performed a separate review of these html accounts.

Statement of financial activities

Help - Question Mark Symbol

(incorporating income & expenditure account)

for the Year ended 28 February 2012


Notes Unrestricted funds:
Restricted income funds
£
Endowed
Funds
£
2012
Total
£
2011
Total
£
General
purpose
£
Designated funds
£
Incoming resources info
 
 
 
 
 
 
 
Incoming resources from generated funds:
 
 
 
 
 
 
 
Voluntary income:
 
 
 
 
 
 
 
 - Donations info
2
4,211
-
-
-
4,211
553
 - Members’ subscriptions info
 
1,201
-
-
-
1,201
1,040
 Activities for generating funds info
3
305
-
-
-
305
527
 Investment income info
4
214
-
35
-
249
194
 
 
 
 
 
 
 
 
Incoming resources from charitable activities: info
 
 
 
 
 
 
 
 Concerts info
5 1,512
-
-
-
1,512
2,500
 Tours & trips info
 
-
-
-
-
-
3,990
 Social events info
6
792
-
-
-
792
248
Total incoming resources
 
8,235 
35
-
8,270
9,052
 
 
 
 
 
 
 
 
Resources expended info
 
 
 
 
 
 
 
Costs of generating funds:
 
 
 
 
 
 
 
 Fundraising trading: costs of
 goods sold and other costs info
3
(162)
-
-
-
(162)
(271)
 
 
 
 
 
 
 
 
Charitable activitiesinfo
 
 
 
 
 
 
 
 Rehearsal premises info
 
(1,602)
-
-
-
(1,602)
(1,510)
 Concert and competition costs info
5
(856)
-
(30)
-
(886)
(1,556)
 Tours & trips info
 
-
-
-
-
-
(5,038)
 Social events info
6
(869)
-
-
-
(869)
(387)
 Admin and other costs info
7
(628)
-
-
-
(628)
(759)
 Donations expenditure info
8
-
(1,000)
-
-
(1,000)
-
Charitable activities total
 
(3,955)
(1,000)
(30)
-
(4,985)
(9,250)
 
 
 
 
 
 
 
 
 Governance costs info
9
(676)
-
-
-
(676)
(360)
Total resources expended
 
(4,793)
(1,000)
(30)
-
(5,823)
(9,881)
 
 
 
 
 
 
 
 
Net incoming/(outgoing) resources before transfers
 
3,442
(1,000) 5
-
2,447
(829)
Gross transfers between funds 
17
(150)
150 -
-
-
-
               
Other recognised gains/losses              
Gains on investments 13
-
-
-
22
22
-
Net movement in funds info
 
3,292
(850) 5 22
2,469
(829)
 
 
 
 
 
 
 
 
Fund balances brought forward
 
16,250 1,000 - 1,000 18.250 19,079
Fund balances carried forward
19,542
150
5
1,022
20,719
18,250

The notes on pages 15 to 22 form part of these financial statements.


 

Hover the cursor over a category to display the related annual report explanation. Click on a legend category to show or hide that bar.

Balance Sheet

at 28 February 2012

    2012   2011
£ £ £ £
Fixed assets            
Tangible fixed assets info 12   2,140     1,036
Investments info 13  
1,022
   
1,000
Total fixed assets     3,162     2,036
             
Current assets            
Stock 14 2,295     2,453  
Debtors 15 546     568  
Fixed term deposits (maturing within one year) info   6,000     2,000  
Cash at bank and in hand  
10,055
   
12,627
 
Total current assets   18,896     17,648  
Creditors: amounts due within one year 16
(1,339)
   
(1,434)
 
Net current assets     17,557     16,214
Net assets    
20,719
   
18,250
             
FUNDS 1, 17          
             
Unrestricted funds            
General fund     19,542     16,250
Designated fund – Stage piano fund     150     -
Designated fund – CLAN donation fund     -     1,000
             
Restricted income funds            
Iain Fraser Award prize fund     5     -
             
Endowed funds            
Iain Fraser Award endowment fund     1,022     1,000
             
Total funds    
20,719
   
18,250

The notes on pages 15 to 22 form part of these financial statements.

Approved by the committee and signed for and on their behalf

 

G Henderson, President

29 April 2012


 
 
 
 

Notes - Accounting policies

Notes to the accounts

1. Accounting Policies

General

These financial statements have been prepared under the historic cost convention (except for investments) and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008), The Statement of Recommended Practice: Accounting and Reporting by Charities issued in March 2005 (the Charities SORP 2005), The Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006.

These accounting policies have been applied consistently throughout the current and previous periods.

Basis of recognition and allocation of expenditure

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes VAT which cannot be recovered and is reported as part of the expenditure to which it relates. Costs are charged directly to the most appropriate activity or category. Committee expenditure is allocated on the basis of where the majority of time is spent on activities.

Fixed assets, depreciation, donated fixed assets and heritage assets

The Society owns original music manuscripts which are considered historic heritage assets. These have not been capitalised in the balance sheet due to the difficulty in obtaining reliable cost information, as permitted by the Charities SORP 2005.

Assets which costs £100 or over are capitalised. Donated fixed assets are capitalised at their estimated value.

Provision for depreciation of fixed assets held for use by the Society is made at the following rates based on the estimated useful life of these fixed assets and their anticipated residual value:

  • String instruments, office & other equipment and trophies 10% per annum, reducing balance basis
  • Electronic instruments 10% per annum, straight line basis

Losses on disposal of fixed assets and reductions in the net book value of impaired fixed assets are treated as additional depreciation charges, which are reported within the appropriate resources expended section of the Statement of Financial Activities.

Investments

Investments are included at market value at the balance sheet date.

All gains and losses on investments are reflected in the Statement of Financial Activities as they arise and are not separated between realised and unrealised gains and losses.

Realised gains and losses on investments are the aggregate of the difference between sale proceeds and opening market value (or cost if purchased during the year). Unrealised gains and losses represent the movement in market value during the year.

Stocks

Stocks for resale are valued at the lower of cost and net realisable value.

Funds: Unrestricted, endowment and restricted income

Unrestricted funds consists of the general fund and designated funds. Designated funds are funds established by the committee from time to time for specific projects or purposes, are not in any way restricted and any surplus or deficit will be transferred to/from the general fund when the designated fund is closed.

Restricted funds (income and endowment) are funds subject to specific restrictions imposed by donors or by the purpose of the appeal. The purpose and use of designated, restricted income and endowment funds is set out in the notes to the financial statements.

Incoming resources:

  • Concert income consists of appearance fees, broadcast rights income and ticket sales from concerts organised by the Society. Income from advance ticket sales is treated as deferred income until the event has occurred. Hospitality during concert events received from promoters is excluded as permitted by the Charities SORP 2005 due to the difficulty in ascertaining value.
  • Donations income includes amounts received from non-commercial events such as church, nursing home and fundraising concerts which are considered donations in substance. Income is recognised on receipt. Also included is the estimated value of Gifts in kind and goods or services donated to the Society where the amounts are material, readily quantifiable and measurable. Such estimates are based on the market price the Society would otherwise have paid.
  • Donations of goods for resale are included in fundraising activities at the sale value, once sold.
  • Member subscriptions are considered to be donations in substance and are recognised on receipt.
  • Investment income – bank interest is recognised as it is earned and dividends when the investment is quoted ex-dividend. 
  • Gift Aid recoverable is included within the same category of income to which the Gift Aid claim relates in the same period in which that income is recognised.
  • Income from grants is recognised when entitlement is demonstrable, there is certainty regarding the amount and any conditions attached are wholly within the control of the Society.
  • Tours and trips includes income relating to the travel arrangements of specific concerts outwith the usual geographic area of the Society. Contributions to costs from members is treated as deferred income until the event has occurred.
  • No value has been attributed to the contribution of the members acting as volunteers playing at concerts. Refer to the annual report for more information on their contribution.

Resources expended:

  • Concert and competition expenditure includes the direct costs of concerts or competitions (such as venue hire, marketing, box offices fees, performing rights fees and artist fees) and indirect costs (such as provision of music, music skills workshops, introductory taster session for member recruitment and composition of harmony parts). Costs incurred in the preparation of concerts are treated as prepayments until the event has occurred.
  • Grants and donations - the objects of the Society include the option of the payment of grants or donations for charitable purposes at the discretion of the management committee.
  • Tours and trips includes expenditure relating to the travel arrangements of specific concerts outwith the usual geographic area of the Society. Costs are treated as prepayments until the event has occurred.
  • Governance costs include those costs associated with meeting the constitutional and statutory requirements of the Society and include the independent examination, costs relating to the committee and AGM meetings, and an allocation of committee expenses.
  • An amount equal to the donations income recognised on Gifts in kind (not for resale) and goods or services received free of charge is included within the most relevant category of expenditure to which the donation relates.
  • Investment management costs of common investments funds are deducted directly from the capital (80%) and income (20%) of the fund and are therefore not separately disclosed, as permitted by the Charities SORP.

Taxation

The Society is recognised as a charity by HM Revenue & Customs and therefore benefits from certain exemptions from taxation on income and gains, to the extent they are applied for charitable purposes. No tax charges have arisen in the Society. 

 

Notes - Continued 1

2. Donations

General fund: 2012
£
2011
£
Non-commercial concert donations 585 495
Other donations 3,500 23
Value of Gifts in kind and donated goods or services 126 35
 
4,211
553

A corresponding amount of expenditure in relation to the value of donated goods and services has been included in the following resources expended categories:

General fund: 2012
£
2011
£
Cost for generating funds – Scottish Music Evening Raffle (see note 3) - 35
Governance costs - subscriptions (see note 9) 126 -
 
126
35

3. Activities and costs for generating funds 

    2012     2011  
General fund: Income
£
Costs
£
Net
£
Income
£
Costs
£
Net
£
Scottish Music Evening Raffle - - - 165 (88) 77
Easyfundraising.org.uk 118 - 118 63 - 63
CD, Tape & other items 187 (162) 25 299 (183) 116
 
305
(162)
143
527
(271)
256

4. Investment income 

    2012     2011  
  General fund
£
Endowed fund
£

Total
£
General fund
£
Endowed fund
£

Total
£
Interest income 214 - 214 174 20 194
Dividends from UK investments - 35 35 - - -
 
214
35
249
174
20
194

5. Concerts and competitions

    2012     2011  
General fund: Income
£
Costs
£
Net
£
Income
£
Costs
£
Net
£
Music Hall Fiddlers Rally 800 (99) 701 800 (45) 755
Fiddlers' Spectacular 200 (20) 180 - - -
Reel & Rowie Coffee Morning 212 (256) (44) - - -
Scottish Music Evening - - - 950 (957) (7)
Other commercial events 300 - 300 750 - 750
Society annual competition - (109) (109) - (134) (134)
Indirect concert costs & workshops - (138) (138) - (289) (289)
Trophy & instrument depreciation - (234) (234) - (110) (110)
Total general fund
1,512
(856)
656
2,500
(1,535)
965
             
Restricted income funds:            
Iain Fraser Prize - (30) (30) - (21) (21)
             
Total of all funds
1,512
(886)
626
2,500
(1,556)
944

The cost of rehearsal premises is reported separately in the Statement of Financial Activities and is not allocated to concerts as the committee view that, although related, practices are a separate activity to performances.    

6. Social events

    2012     2011  
General fund: Income
£
Costs
£
Net
£
Income
£
Costs
£
Net
£
Race Night 472 (455) 17 - - -
Christmas ceilidh party 320 (414) (94) 248 (387) (139)
 
792
(869)
(77)
248
(387)
(139)

7. Admin and other costs

General fund: 2012
£
2011
£
Insurance 87 86
Stationery, subscriptions, web site 350 313
Advertising & public notices 97 97
Committee expenses (see note 10) - 78
Gifts to Society members and others 74 44
Office equipment depreciation (see note 12) 20 141
 
628
759

8. Donations expenditure

Designated funds: 2012
£
2011
£
CLAN (Cancer Link Aberdeen & North)
1,000
-

9. Governance costs

General fund: 2012
£
2011
£
Stationery & postage 32 30
Independent Examiner Fee 180 180
Independent Examiner Gift - 2010 Report - 40
Rent for meetings 43 32
Subscriptions (see note 2) 126 -
Committee expenses (see note 10) 295 78
 
676
360

10. Committee expenses and benefits


Expenses allocated to:
    2012
£
2011
£
Charitable activities - Admin & other costs     - 78
Charitable activities - Concert & competition costs     26 60
Governance     295 78
     
321 
216

During the period one committee member received reimbursement of expenses (2011: three committee members received expenses) to cover:

  • communications, stationery and other costs of fulfilling committee roles from home as no office accommodation is provided by the Society; and
  • travel costs for attending the ICAEW Charities Online Financial Reporting Awards ceremony (applies to current year only)

No committee members received any remuneration in the year (2011: none), nor were they paid any expenses for attending committee meetings.

Related party transactions

During the year ended 28 February 2012 Graham Reid was presented with a gift (value £55) in recognition of his 25 years service as conductor. This is included within Gifts to members and others in note 7.

Related party transactions - member benefits

All the committee are members of the Society and are entitled to the benefits offered to all members. No disclosure is made of transactions entered into or benefits obtained where these are available to the entire member group

11. Employees

There were no employees during the year (2011: none).

Notes - Continued 2

12. Tangible fixed assets

 
Instruments
£
Office & Other
Equipment

£

Trophies
£

Total
£
Cost        
At beginning of year 1,702 50 530 2,282
Additions 1,191 167 - 1,358
At end of year
2,893
217
530
3,640
         
Depreciation        
At beginning of year 863 10 373 1,246
Charge for year 218 20 16 254
At end of year
1,081
30
389
1,500
         
Net book value        
At 28 February 2012
1,812
187
141
2,140
         
At 28 February 2011
839
40
157
1,036

Heritage fixed assets

The Society owns three original music manuscripts by Peter Milne and one music manuscript by J Scott Skinner. Due to the difficulty in valuing these they are not incorporated in the above table. The manuscripts are currently on loan to the University of Aberdeen and can by viewed in their archives by contacting them directly.

13. Investments

  2012
£
2011
£
Market value at beginning of year 1,000 1,000
Net change in deposit account balances (1,000) -
Add: Investment purchases at cost 1,000 -
Add: Net gain on revaluation 22 -
Market value at end of year
1,022
1,000
     
Represented by:    
Listed securities: UK Common Investment Funds 1,022 -
Deposit account balances - 1,000
 
1,022
1,000
Historic cost of investments 1,000 1,000

Included in the portfolio are the following individual investments which represent more than 5% by value of the total investment fund:

  2012 
£
2011
£
Sarasin Alpha CIF for Income & Reserves 1,022 -
Deposit account balances - 1,000

14. Stock

  2012 
£
2011
£
Finished goods:
 CDs, Tapes, Anniversary Books
2,154 2,311
 T Shirts and Ties 141 142
 
2,295
2,453

15. Debtors

  2012
£
2011
£
Gift Aid recoverable 60 123
Other debtors and prepayments 486 445
 
546
568

16. Creditors: amounts due within one year

  2012 
£
2011
£
Trade creditors 202 269
Deferred income 155 -
Accruals and other creditors 982 1,165
 
1,339
1,434

17. Total funds  

Funds Opening balance
£
Incoming Resources
£
Resources Expended
£

Transfers
£
Gains/ Losses
£
Closing balance
£
Unrestricted:            
General fund 16,250 8,235 (4,793) (150) - 19,542
Designated funds:            
 Stage piano fund - - - 150 - 150
 CLAN Donation 1,000  - (1,000) - - -
             
Restricted:
Iain Fraser Award prize fund
- 35 (30) - - 5
             
Endowed:
Iain Fraser Award endowment fund
1,000 - - - 22 1,022
             
Total all funds
18,250
8,270
(5,823)
-
22
20,719

The Stage piano fund is a designated fund established in the year ended 28 February 2012 with the target of increasing the fund at a rate of £150/year over 10 years, plus associated interest earned, in order to cover the replacement of the current stage piano at the end of its anticipated life.

The CLAN donation fund is a designated fund established in the year ended 28 February 2011 in relation to the £1,000 donation to CLAN agreed at the AGM in May 2010. The donation was presented in March 2011 and the fund closed.

The income from the Iain Fraser Award endowment fund is restricted and is to be used as a prize (the Iain Fraser Award) in the Society’s annual competition. The income may be variable and/or received in arrears. The committee has agreed that any deficit arising on the fund should be carried forward, reducing the following year’s prize. 

18. Analysis of net assets by fund

  Unrestricted funds: Restricted
income
funds
£
Endowed
funds
£
Total
£
General
fund
£
Designated
funds
£
Tangible fixed assets 2,140 - - - 2,140
Investments (fixed assets) - - - 1,022 1,022
Net current assets 17,402 150 5 - 17,557
 
19,542
150
5
1,022
20,719

19. Controlling party

The Society was under the control of the committee members, as detailed on page 1, throughout the current year. Refer to the previous year's annual report for a full list of the committee members that served during that period.

PDF Version - Annual report 2012

The online html version of our annual report and financial statements contains exactly the same words and numbers as the print PDF version below, but with some additional functionality in terms of interactive charts, hyperlinks and help tips.

As we haven't changed any of the text in the online version the page references are only correct for the PDF version. However, we have converted the page numbers to hyperlinks so that you will still navigate to the correct place.

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