REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
Report of the Trustees and |
Financial Statements for the Year Ended 31 March 2024 |
for |
ACAIR |
REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
Report of the Trustees and |
Financial Statements for the Year Ended 31 March 2024 |
for |
ACAIR |
ACAIR |
Contents of the Financial Statements |
for the Year Ended 31 March 2024 |
Page |
Report of the Trustees | 1 | to | 4 |
Independent Examiner's Report | 5 |
Statement of Financial Activities | 6 |
Balance Sheet | 7 | to | 8 |
Notes to the Financial Statements | 9 | to | 16 |
ACAIR (REGISTERED NUMBER: SC576731) |
Report of the Trustees |
for the Year Ended 31 March 2024 |
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2024. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). |
OBJECTIVES AND ACTIVITIES |
Objectives and aims |
The objectives of Acair are to carry on in the United Kingdom and elsewhere the advancement of education, arts, heritage and culture for public benefit and with charitable purposes whether by itself or through subsidiary or associated companies or firms or promoters, publishers, proprietors and commissioners of educational and general material in Gaelic and any other language for the purposes of education, instruction, information and recreation and for use in schools, colleges, libraries and elsewhere, in the form of books and associated literary merchandising that can be accessed by any member of the public. |
Background |
Acair was established as a Company Limited by Guarantee and not having a share capital on 19 September 2017 and gained charitable status on 27 October 2017. The Company was dormant until 31 March 2018 and commenced operations on 1 April 2018. |
When operations commenced on 1 April 2018, the shares in ACAIRBOOKS LTD (Company number SC063662) previously held by various individuals and corporate bodies were donated to the charity. There are 14,000 issued shares with a nominal value of £1 each. |
When operations commenced on 1 April 2018, the trade of ACAIRBOOKS LTD in the sum of £137,516 was transferred to the charity. This included the transfer of the employees under TUPE arrangements. In addition, the net assets were donated. ACAIRBOOKS LTD ceased trading on 30 November 2018. |
On 25 February 2020, ACAIRBOOKS LTD was dissolved. This meant that the £14,000 investment in the share capital was removed from the balance sheet of the charity. |
ACAIR (REGISTERED NUMBER: SC576731) |
Report of the Trustees |
for the Year Ended 31 March 2024 |
ACHIEVEMENT AND PERFORMANCE |
Charitable activities |
During the twelve-month period to 31 March 2024, the charitable company has published twenty-one new books. Seventeen of those were children's books in Gaelic, all of which were translations of English works. Sixteen of those were in collaboration with the Scottish Book Trust. These books were also given to children as part of the Scottish Book Trust BookBug and Read, Write, Count schemes. The other book was An Fhaochag agus a' Mhuc-mhara, the Gaelic version of The Snail and the Whale by Julia Donaldson and Axel Scheffler. |
The charity also published four new books for adults: two in English, one in Gaelic and one bilingual book. Those books were as follows: Hebridean Voyages by Colin Tucker; The Nicolson Institute: The History of an Island School by Iain Smith with Joan Forrest; Somhairle MacGill-Eain na Bhriathran Fhèin, edited by Mairi Sìne Campbell, Jo Macdonald and Ishbel Maclean; and Women of the Hebrides / Ban-eileanaich Innse Gall by Joni Buchanan. |
There have also been a number of reprints of popular books for which stock was running low such as Crann-fìge, Doras gun Chlàimhean and HAAR The New Hebridean Kitchen. |
Acair created five new audiobooks in this period, both for children and for adults: An Fhaochag agus a' Mhuc-mhara; Cha Till Mise; An Croitear; An Tractar agus an Liobht and Uaine-shìth Uasail. Children's audio books are free. The number of downloads of audio books increased massively in this period, up 621% on 2022-23. |
Acair books have been shortlisted in various awards. Crann-fìge won the Highland Book Prize 2022. At the Gaelic Literature Awards in September 2023 Acair books received three prizes: Doras gun Chlàimhean received the prize for Poetry; Gun Sireadh, Gun Iarraidh THE TOLMIE COLLECTION received the prize for Non-fiction and Crann-fìge receive the prize for Fiction. Cha Till Mise had also been shortlisted in the Non-fiction category and Na Stocan agus na Stùcan in the Children's category. Doras gun Chlàimhean received the award for Best Adult Book at the Royal National Mod. At the Saltire Literary Awards 2023 three Acair books were shortlisted: Crann-fìge in Fiction, The Whalers of Harris in History and Cha Till Mise in Research. Acair was also shortlisted in the category of Publisher of the Year. Turas by Iain D. Urchardan was longlisted for the Highland Book Prize 2023. |
The charity has also organised and attended various events in order to encourage book sales, including liaising with book festivals. One such event was a highly successful online book sale of children's Gaelic books. This was massively popular and showed the demand that there is for children's books but that often cost is an obstacle. It was helpful to parents at a time of a cost-of-living crisis. We also implemented an option at checkout on our website to 'Collect from Acair', which saved on postage for those who were able to take advantage of the opportunity. |
Acair's staffing complement increased in the period as we took on a Marketing and Communications Officer. We also implemented strategies to afford Effective Worker Voice to staff. |
We hosted two students on placements during the period and this was mutually beneficial to the charity and to the students. |
Acair has continued to collaborate with Comhairle nan Leabhraichean, including on a new series of Gaelic fiction entitled Feuch Ficsean. |
It is a challenging financial climate with costs generally having risen, printing, postage and haulage costs in particular. Nevertheless, Acair has continued to work towards publishing quality literature, seeking best value in all its operations and looking for sources of funding where appropriate. There are many projects in the schedule, and we look forward with optimism to bringing these to publication. |
FINANCIAL REVIEW |
Financial position |
The income and property of the charitable company is applied solely towards the promotion of the company's objects and charitable purposes. |
Total income for the year ending 31 March 2024 was £266,025 (2023 - £254,792) against expenditure of £272,450 (2023 - £250,450) resulting in a net deficit of £6,425 (2023 - surplus of £4,342). |
The final reserves held at the end of the year were £160,308 of which £17,040 were restricted funds (2023 - £166,733, of which £26,213 were restricted). |
ACAIR (REGISTERED NUMBER: SC576731) |
Report of the Trustees |
for the Year Ended 31 March 2024 |
FINANCIAL REVIEW |
Reserves policy |
At its meeting on 13 February 2019, the Board agreed to have a reserve policy which aims to hold in reserve the equivalent of six months running costs. |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Governing document |
The charity is controlled by its governing document, the Articles of Association, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. |
The charitable company was incorporated on 19 September 2017 and commenced trading on 1 April 2018. |
Recruitment and appointment of new trustees |
Membership is open to anyone with an interest or experience in education, arts, heritage, culture, Gaelic publishing and the advancement of the Gaelic language. Employees of the company shall not be eligible for membership; a person who becomes an employee of the company after admission to membership shall automatically cease to be a member. |
A person shall not be eligible for election/appointment as a director unless he/she is a member of the company. |
The election of directors is undertaken by members of the charitable company at an Annual General Meeting. |
Organisational structure |
Day to day decision making is delegated to the manager. |
Strategic decisions and also decisions relating to which publications to proceed with are made at the quarterly board meetings. |
Risk management |
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. |
REFERENCE AND ADMINISTRATIVE DETAILS |
Registered Company number |
Registered Charity number |
Registered office |
Trustees |
ACAIR (REGISTERED NUMBER: SC576731) |
Report of the Trustees |
for the Year Ended 31 March 2024 |
REFERENCE AND ADMINISTRATIVE DETAILS |
Company Secretary |
Independent Examiner |
Andrew Cumming |
Mann Judd Gordon Ltd |
Chartered Accountants |
26 Lewis Street |
Stornoway |
Isle of Lewis |
HS1 2JF |
STATEMENT OF TRUSTEES' RESPONSIBILITIES |
The trustees (who are also the directors of Acair for the purposes of company law) are responsible for preparing the Report of the Trustees 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to |
- | select suitable accounting policies and then apply them consistently; |
- | observe the methods and principles in the Charity SORP; |
- | make judgements and estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. |
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Approved by order of the board of trustees on |
Independent Examiner's Report to the Trustees of |
Acair |
I report on the accounts for the year ended 31 March 2024 set out on pages six to sixteen. |
Respective responsibilities of trustees and examiner |
The charity's trustees are responsible for the preparation of the accounts in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). The charity's trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the Accounts Regulations does not apply. It is my responsibility to examine the accounts as required under Section 44(1)(c) of the Act and to state whether particular matters have come to my attention. |
Basis of the independent examiner's report |
My examination was carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations 2006. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts. |
Independent examiner's statement |
In connection with my examination, no matter has come to my attention : |
(1) | which gives me reasonable cause to believe that, in any material respect, the requirements |
- | to keep accounting records in accordance with Section 44(1)(a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and |
- | to prepare accounts which accord with the accounting records and to comply with Regulation 8 of the 2006 Accounts Regulations |
have not been met; or |
(2) | to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. |
Andrew Cumming |
The Institute of Chartered Accountants of Scotland |
Mann Judd Gordon Ltd |
Chartered Accountants |
26 Lewis Street |
Stornoway |
Isle of Lewis |
HS1 2JF |
15 August 2024 |
ACAIR |
Statement of Financial Activities |
for the Year Ended 31 March 2024 |
31.3.24 | 31.3.23 |
Unrestricted | Restricted | Total | Total |
fund | fund | funds | funds |
Notes | £ | £ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Charitable activities | 3 |
Investment income | 2 |
Total |
EXPENDITURE ON |
Charitable activities | 4 |
NET INCOME/(EXPENDITURE) | ( |
) | ( |
) | ( |
) |
Transfers between funds | 14 | 8,029 | (8,029 | ) | - | - |
Net movement in funds | ( |
) | ( |
) |
RECONCILIATION OF FUNDS |
Total funds brought forward |
TOTAL FUNDS CARRIED FORWARD | 166,733 |
ACAIR (REGISTERED NUMBER: SC576731) |
Balance Sheet |
31 March 2024 |
31.3.24 | 31.3.23 |
Unrestricted | Restricted | Total | Total |
fund | fund | funds | funds |
Notes | £ | £ | £ | £ |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 | ( |
) | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
NET ASSETS |
FUNDS | 14 |
Unrestricted funds | 140,520 |
Restricted funds | 26,213 |
TOTAL FUNDS | 166,733 |
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2024. |
The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2024 in accordance with Section 476 of the Companies Act 2006. |
The trustees acknowledge their responsibilities for |
(a) | ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company. |
ACAIR (REGISTERED NUMBER: SC576731) |
Balance Sheet - continued |
31 March 2024 |
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. |
The financial statements were approved by the Board of Trustees and authorised for issue on |
ACAIR |
Notes to the Financial Statements |
for the Year Ended 31 March 2024 |
1. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
The charitable company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland': |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 3.17(d); |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
• | the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A; |
• | the requirement of paragraph 33.7. |
Preparation of consolidated financial statements |
The financial statements contain information about Acair as an individual company and do not contain consolidated financial information as the parent of a group. The charity is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements. |
Consolidated income for the group is less than £500,000. Therefore consolidated accounts are not required to be prepared. |
Income |
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. |
Expenditure |
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Fixtures and fittings | - |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads. |
Taxation |
The charity is exempt from corporation tax on its charitable activities. |
ACAIR |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
1. | ACCOUNTING POLICIES - continued |
Fund accounting |
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. |
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. |
Pension costs and other post-retirement benefits |
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. |
2. | INVESTMENT INCOME |
31.3.24 | 31.3.23 |
Unrestricted | Restricted | Total | Total |
funds | funds | funds | funds |
£ | £ | £ | £ |
Deposit account interest | 374 | - |
3. | INCOME FROM CHARITABLE ACTIVITIES |
31.3.24 | 31.3.23 |
Activity | £ | £ |
Grants | Charitable activities | 98,643 | 112,204 |
Sales | Charitable activities | 157,251 | 133,288 |
Donations | Charitable activities | 2,200 | 5,700 |
Copyright and Royalty income |
Charitable activities |
294 |
261 |
Other income | Charitable activities | 7,263 | 3,273 |
Grants received, included in the above, are as follows: |
31.3.24 | 31.3.23 |
£ | £ |
Publishing grants | 37,143 | 29,414 |
Bord na Gàidhlig | 61,500 | 60,000 |
Highlands & Islands Enterprise | - | 6,750 |
Gaelic Book Council | - | 1,900 |
Scottish Book Trust | - | 14,140 |
98,643 | 112,204 |
ACAIR |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
4. | CHARITABLE ACTIVITIES COSTS |
Support |
Direct | costs (see |
Costs | note 5) | Totals |
£ | £ | £ |
Charitable activities | 268,092 | 4,358 | 272,450 |
5. | SUPPORT COSTS |
Governance |
costs |
£ |
Charitable activities | 4,358 |
6. | NET INCOME/(EXPENDITURE) |
Net income/(expenditure) is stated after charging/(crediting): |
31.3.24 | 31.3.23 |
£ | £ |
Depreciation - owned assets |
7. | TRUSTEES' REMUNERATION AND BENEFITS |
There were no trustees' remuneration or other benefits for the year ended 31 March 2024 nor for the year ended 31 March 2023. |
Trustees' expenses |
There were no trustees' expenses paid for the year ended 31 March 2024 nor for the year ended 31 March 2023. |
8. | STAFF COSTS |
The average monthly number of employees during the year was as follows: |
31.3.24 | 31.3.23 |
All staff |
ACAIR |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
9. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES |
Unrestricted | Restricted | Total |
fund | fund | funds |
£ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Charitable activities |
Investment income |
Total |
EXPENDITURE ON |
Charitable activities |
NET INCOME/(EXPENDITURE) | ( |
) |
Transfers between funds | (2,719 | ) | 2,719 | - |
Net movement in funds |
RECONCILIATION OF FUNDS |
Total funds brought forward | 137,363 | 25,028 |
TOTAL FUNDS CARRIED FORWARD | 140,520 | 26,213 | 166,733 |
10. | TANGIBLE FIXED ASSETS |
Fixtures |
and |
fittings |
£ |
COST |
At 1 April 2023 and 31 March 2024 |
DEPRECIATION |
At 1 April 2023 and 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
ACAIR |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
11. | STOCKS |
31.3.24 | 31.3.23 |
£ | £ |
Work-in-progress |
Finished goods |
127,235 | 112,390 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.24 | 31.3.23 |
£ | £ |
Trade debtors |
Other debtors |
VAT |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.24 | 31.3.23 |
£ | £ |
Trade creditors |
Credit card account | 188 | 392 |
Social security and other taxes |
Pensions control account | - | 182 |
Accrued expenses |
14. | MOVEMENT IN FUNDS |
Net | Transfers |
movement | between | At |
At 1.4.23 | in funds | funds | 31.3.24 |
£ | £ | £ | £ |
Unrestricted funds |
General fund | 140,520 | (5,281 | ) | 8,029 | 143,268 |
Restricted funds |
Publishing | 26,213 | (1,144 | ) | (8,029 | ) | 17,040 |
TOTAL FUNDS | (6,425 | ) | 160,308 |
ACAIR |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
14. | MOVEMENT IN FUNDS - continued |
Net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 238,412 | (243,693 | ) | (5,281 | ) |
Restricted funds |
Publishing | 27,613 | (28,757 | ) | (1,144 | ) |
TOTAL FUNDS | ( |
) | (6,425 | ) |
Comparatives for movement in funds |
Net | Transfers |
movement | between | At |
At 1.4.22 | in funds | funds | 31.3.23 |
£ | £ | £ | £ |
Unrestricted funds |
General fund | 137,363 | 5,876 | (2,719 | ) | 140,520 |
Restricted funds |
Publishing | 25,028 | (1,534 | ) | 2,719 | 26,213 |
TOTAL FUNDS | 162,391 | 4,342 | - | 166,733 |
Comparative net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 242,307 | (236,431 | ) | 5,876 |
Restricted funds |
Publishing | 12,485 | (14,019 | ) | (1,534 | ) |
TOTAL FUNDS | 254,792 | (250,450 | ) | 4,342 |
ACAIR |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
14. | MOVEMENT IN FUNDS - continued |
A current year 12 months and prior year 12 months combined position is as follows: |
Net | Transfers |
movement | between | At |
At 1.4.22 | in funds | funds | 31.3.24 |
£ | £ | £ | £ |
Unrestricted funds |
General fund | 137,363 | 595 | 5,310 | 143,268 |
Restricted funds |
Publishing | 25,028 | (2,678 | ) | (5,310 | ) | 17,040 |
TOTAL FUNDS | 162,391 | (2,083 | ) | - | 160,308 |
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 480,719 | (480,124 | ) | 595 |
Restricted funds |
Publishing | 40,098 | (42,776 | ) | (2,678 | ) |
TOTAL FUNDS | 520,817 | (522,900 | ) | (2,083 | ) |
The balance of the restricted funds held at the year end relates to income received for specific publications prior to the year-end which has not yet been spent. |
The transfers from the restricted fund to the unrestricted fund relate to funding received for published projects, with surpluses at that point deemed to cover internal overheads rather than direct publishing costs, being primarily wages. |
15. | RELATED PARTY DISCLOSURES |
ACAIR |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
16. | ULTIMATE CONTROLLING PARTY |
There is no ultimate controlling party. |