The trustees present their annual report and financial statements for the year ended 31 March 2024.
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 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 company's objects are To promote the arts in society for the benefit of the inhabitants of Huntly, the surrounding area and beyond by developing public appreciation of the arts and by improving public access to contemporary arts.
The purposes:-
the advancement of citizenship or community development,
the advancement of the arts, heritage, culture or science, the provision of recreational facilities, or the organisation of recreational activities,
the object of improving the conditions of life for the persons for whom the facilities or activities are primarily intended.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
In 2023-2024 Deveron Projects:
produced ten creative projects with twelve artists
hosted ninety public events
welcomed almost two thousand participants
fundraised and received £178,740 towards core, capital and programme costs.
offered Square Deal community hub to forty-three local organisations, businesses and community groups for 896 hours, generating £5,658 towards building costs
developed a new business plan for 2025-2028 with revised vision, ambition and aims
updated portfolio of comprehensive strategies, policies and action plans
In January 2024, Natalia stepped down as Director of the organisation, having overseen a transition of leadership to the new Co-Directors Jenny Salmean and Matthew Evans. In this new structure for Deveron Projects, the new role of Programme Coordinator was taken up by Misa Brzezicki (previously Art & Community Worker).
This year’s projects included:
Caretakers’ Garden – gardener-in-residence Lindy Young and artist-in-residence Ju Scott. Developing more accessible green spaces in Huntly’s town centre for humans and more than humans alike.
In the Wink of a Daisy – artist Petra Pennington. An exploration of different ways of measuring and experiencing time.
The Gathering Table – artists Kawther Luay and Fionn Duffy. Questioning notions of host and guest through foraging and three theatrical meals, as well as a research residency with Colectivo Amasijo in Mexico.
The Museum of Embodied Knowledge – artist Liberatha Alibalio in partnership with Modzi Arts in Zambia. Exploring the local histories and practices of processing wool with textile artists in and around Huntly.
The world is ours, in spite of all – artist Hussein Mitha. Concluding this project with the publication of an international climate justice handbook for young people, Paradise Now! A Climate Justice Handbook for Young People. Distributed to over 50 schools, youth groups and community libraries across the UK and internationally.
TV Dinners – artists In The Shadow of the Hand (Virginia Hutchison and Sarah Forrest). Investigating hospitality, circularity and materiality through hosting film nights and shared meals.
White Wood – artist Caroline Wendling. Research, maintenance and activation of this long-term artwork, a living monument to peace. In collaboration with forester Steve Brown and newLEAVES research network.
The Home Programme, our regular programme of three events, continued throughout the year with 25 Friday Lunches, 12 Food Chains and 11 Farmers’ Markets.
Deveron Projects’ sources of income for 2023-2024 are illustrated in the chart below. This demonstrates a breadth of income sources, establishing a sturdy base for further fundraising in future years. Our regular annual Creative Scotland RFO grant (£110,000) represents a higher proportion of total income than recent years at 62%. This is because grants of comparable scale have been received in previous financial years (eg. Culture Collective £147,162 received 2022-2023), while they continue to fund ongoing projects this year.
We will continue to diversify our funding streams to support our financial sustainability. Alongside fundraising from public and private sources, we will build on Square Deal’s potential for income generation. This includes venue hire for the community hub, accommodation fees for short term visitors and artists’ Independent Residencies. We are also developing a fee structure for partnership residency management fees, consultancy and advisory services.
Excerpt from Reserves Policy:
The Deveron Projects Board recognises its responsibility to ensure the organisation has sufficient emergency reserves to fund present and future liabilities. As such we aim to hold a minimum of three months’ operating costs in unrestricted emergency reserves, raised either by fundraising or other income generation.
These emergency reserves are maintained in order to:
Sustain a level of working capital that protects the continuity of our core work covering three month’s operating costs
Provide a level of funding for unexpected opportunities or emergencies
Provide cover for risks such as unforeseen expenditure or unanticipated loss of income
Fund short term deficits in our cash budget, such as any project expenditure prior to receiving a funding grant
The Board aims to continue building emergency reserves towards provision for six months’ operating costs. Other purposes remain under consideration, particularly increased financial risk from the climate emergency. Emergency reserves may at times be designated for significant project expenditure or replacement of assets.
2024-2025 is in many ways a transitional year for Deveron Projects, with new leadership continuing to develop a new structure for the organisation, towards a new funding model and new artistic programme.
Many projects ongoing from 2023-2024 will continue including Caretakers’ Garden, Flax, The Gathering Table, The Museum of Embodied Knowledge and White Wood. These are joined by:
Art Road Trip – artist Natasha Ruwona in partnership with the National Gallery
Constellations – group residency with the Constellations ° Cohort 2023
Good Gut! – artist Margherita Soldati in partnership with Mondriaan Fonds
We are building towards a new structure for our artistic programme. From April 2025 we will produce work through three interconnected strands: HOME, LAND and COMMUNITY. These strands grow out of Deveron Projects’ work to date and strive to further imagine what the organisation can achieve. Each strand encompasses regular events, artist residencies and a programming group, and each is supported by our unique infrastructure, partnerships and networks.
Square Deal remains an essential part of our infrastructure, a buzzing community hub on the town square, plus accommodation and studio space for artists-in-residence and other visitors. We are planning retrofit work to improve the energy efficiency and comfort of the building, as well as looking into the potential of developing further space for artist studios on site.
The charity is a company limited by guarantee, governed by its Memorandum and Articles of Association. HM Revenue & Customs have granted charitable status to the company under Section 505 of the Income and Corporation Taxes Act 1988. HM Revenue & Customs recognise the company as a charity for tax purposes in line with Paragraph 1 of Schedule 6 Finance Act 2010. The charity is also recognised as a registered charity by the Office of the Scottish Charity Regulator.
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:
Recruitment of trustees
By appointment as outlined in the memorandum.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The trustees' report was approved by the Board of Trustees.
I report on the financial statements of the charity for the year ended 31 March 2024, which are set out on pages 6 to 17.
The charity’s trustees, who are also the directors of Deveron Projects Ltd 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 charity is a Public Benefit Entity as defined by FRS 102, a private company limited by guarantee, registered in Scotland and a charity registered in Scotland. The address of the registered office is Brander Building, Huntly, Aberdeenshire AB54 8BR.
The financial statements have been prepared in accordance with the charity's governing document, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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) and the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, as modified to include the revaluation of certain financial assets and liabilities measured at fair value through income or expenditure.
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.
Designated funds are unrestricted funds earmarked by the trustees for particular future projects or commitments.
Restricted funds are subject to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
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).
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.
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 payments 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
Events
Reimbursements
Rent
Rates & water
Repairs & maintenance
Insurance
Telephone & website
Postage & stationery
Other office costs
Artists fees
Artists materials
Artists travel
Heat & light
Other events & projects
The average monthly number of employees during the year was: 5
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
There were no disclosable related party transactions during the year (2023 - none).