The trustees present their annual report and financial statements for the year ended 31 December 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 Memorandum and Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
The purpose of the company, as a registered charity, is to promote and encourage interest in, and care for, the history, culture, beauty and character of the Parish of Gairloch, for the benefit of all who wish to be engaged in such advancement of its heritage, be they locally resident, visiting the area in person, or in contact through any form of communication from afar. For a list of activities organised by the charity in the year, please see the 'Exhibitions and Events' section.
In many respects 2024 was another successful year for Gairloch Museum. The UK Museum Accreditation Scheme is a national standard that demonstrates commitment to best practices of governance, collections management and visitor services. We were very pleased to be informed in September that we had been re-awarded the standard for another five years after a rigorous review of all we had undertaken since moving to our new premises.
We had many positive and encouraging remarks about our permanent display. Our art and cultural exhibitions were much admired. We continued to develop our events programme, serving both visitors in the open season and the local community throughout the year. However, as in the previous year, though our admissions income was higher, our income fell short of our outgoings, and that has become a focus of our attention.
The Board of the Museum met eight times in 2024, with a small Executive Group of Board Officers and Staff meeting between times to address issues and ensure actions. Jeremy Fenton stepped down from the Board in June, after serving as Vice-Chair for the last ten years. His contribution to all aspects of the work of the Museum has been immense, and he continues to contribute to the front desk, guided walks, and publications. Jean Ross was elected Vice-Chair, as well as having responsibility for the Cafe. Gordon MacIntosh and Liz Forrest joined the Board at the end of the year, being elected at the AGM.
In response to our financial situation, and looking to the future, the Board approved a Financial Sustainability Strategy, a crucial part of the Forward Plan that will cover all aspects of the Museum’s operations, responsibilities and activities for the next three years. Among other things, the Strategy focussed on the need to increase footfall and membership through Marketing. We were grateful to the Hon Dr Deborah Keith for agreeing to chair the Group.
This was the first full year for our new Curator, Corinna Annetts, whose leadership is characterised by pleasant efficiency and a focused work ethic. She has already made significant contributions to all aspects of the work of the Museum, for example, increasing the number of family-focussed activities, including a series of ‘Mini-Museum’ sessions during the summer holiday period. A number of a grants, not least a major award from MGS for an Events and Outreach Officer, have been secured.
The Events and Outreach programme was seen as an increasingly important part of the work of the Museum. Throughout the year there were Art, Cultural and Heritage exhibitions in both Galleries, and these are open to the public without admission fee. Major Art exhibitions this year included Our Fragile Land and Ulaidhean/Treasures, the latter in collaboration with the Society of Scottish Artists. Our Winter Talks series continued to evolve, with topics ranging from the Picts to Salmon to Deer and the Landscape. Both Exhibitions and Events have Planning Groups, and at the end of the year we were pleased to welcome Ell Sinclair as our new Events and Outreach Officer. The Warm Winter/Whatever the Weather Wednesdays grow in confidence and are attracting wide interest supporting, as they do, the vulnerable in our community.
Also in 2024, the Museum benefitted from funding support which enabled us to be one of a consortium of four Highland museums to work with a Gaelic Development Officer. Gaelic lunches and meetings became a regular feature, a weekly, term-time conversation class, Cearcall Còmhraidh, engaged both fluent Gaelic speakers and learners of all ages, and additional signage was installed to recognise our Gaelic heritage.
The Café continued to prove very popular with visitors and locals alike, but at the end of the year after four years at the helm, our cafe manager, Sally Cameron, decided to step down. We were very grateful to Sally for all that has been achieved in Am Bàrd Cafe, and for being so helpful during the transition period. After competitive interview, Noreen Mackenzie was appointed the new Café Manager to start in 2025.
The Shop continued to prove popular with both visitors and locals, offering a wide range of books, gifts and garments. Irene Macintyre has responsibility, and her unceasing search for new and interesting merchandise is one key reason for the shop’s success.
The Front of House staff ensure a warm welcome to all visitors, while doing immense work behind the scenes to ‘keep the show on the road’. Eilidh Smith and Barbara Mackenzie, as well as volunteers Pete Lynn and Janet Buxton, take full responsibility at the Front Desk, supported by a larger group of willing volunteers. This report is an opportunity to place on record how fortunate the Museum is in the quality of its current staff, and to thank all our Volunteers, who are never taken for granted.
As ever the Board welcomes offers of support and suggestions for improvement from our community of Members. Our meetings are open to all with Minutes published on the website. We also acknowledge the warm and encouraging feedback on social media and particularly in our Visitor’s book. As a final point, we are already planning the celebration of our 50th anniversary in 2027 and will be grateful for any reminiscences and memorabilia, including photographs, to enhance the exhibition and activities that we are working towards.
An operating surplus of £98,743 on charitable activities combined with a provision charge for depreciation of £69,995 resulted in a surplus of £28,748 being carried through to the balance sheet financial year compared to a deficit of £30,619 last year. The charity held unrestricted income reserves of £2,103,966 at the year end (of which £2,001,321 represents the net book value of the museum building, fixtures & fittings etc) with restricted funding reserves of £134,783 and £37,628 to a new endowment fund. In the view of the trustees, the company has sufficient reserves to enable it to continue to operate for the foreseeable future. Aside from time given by the volunteers, no facilities or services were donated.
Reserves policy
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
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:
Induction and training of trustees
Trustees are appointed in accordance with the charity's governing documents, receive induction information and, where appropriate, training in specific aspects of curation, management and operations.
Key management personnel
A sub-group of trustees comprising a chairman, secretary and treasurer are responsible for setting the terms and conditions, including the remuneration packages, of the charity's key management personnel.
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.
This report has been prepared in accordance with the provisisions applicable to companies entitiled to the small companies exemption.
The Trustees' report was approved by the Board of Trustees.
I report on the financial statements of the charity for the year ended 31 December 2024, which are set out on the statement of financial activities, balance sheet and related notes.
The charity’s trustees, who are also the directors of Gairloch & District Heritage Company 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.
Museum income
Admissions
Shop sales
Memberships
Cafe income
Income from fundraising
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Museum income
Admissions
Shop sales
Memberships
Cafe income
Income from fundraising
Gairloch & District Heritage Company Ltd is a private company limited by guarantee incorporated in Scotland. The registered office is Gairloch Museum, Gairloch, IV21 2BH.
The financial statements have been prepared in accordance with the charity's memorandum and articles of association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Companies Act 2006, 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). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
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. The principal accounting policies adopted are set out below.
The charity has generated an operating surplus in the year, and continues to have a strong asset base and cash position. At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Museum admissions and shop and cafe sales are recognised at the time of the sale. Museum membership is recognised on a cash basis, no deferral is recognised as the income is not a significant stream for the charity.
Income received under contract or where entitlement to grant funding is subject to the performance of specific activities is recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.
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.
Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which it relates.
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.
It is the policy of the charity not to capitalise heritage assets belonging to the Museum, where a reliable estimate cannot be made of the asset’s fair value or the information on cost or value is not available and which cannot be obtained at a cost which is commensurate with the benefits to the users of the financial statements. These are in effect inalienable, held in perpetuity, and are mostly irreplaceable. Any financially based valuation would be misleading to the value and significance of the material culture involved. The trust has a clear duty of care for these assets and to make them available for the enjoyment and education of the public as far as is possible, commensurate with their long-term care and preservation. The highest possible standards of collection management are applied, and the catalogues are made available as widely as possible to facilitate all enquiries and requests for information, subject to appropriate security and data protection guidelines.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Stocks are stated at the lower of cost and estimated selling price.
Net realisable value is the estimated selling price less costs to be incurred in marketing, selling and distribution.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future 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.
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.
At the year end there are no areas where critical judgements or material estimates have been made.
Grants receivable for core activities
Grants receivable for core activities
Income from fundraising
Exhibition income
Course income
HMRC Gift Aid received
Rental & property management fees
Exhibition expenses
Director's remuneration and pension costs
Light & heat, rates & insurance
Operating lease payments - office equipment
Bank & PayPal charges
Property repairs & cleaning
Printing, postage, stationary & advertising
Event & curation expenses
General expenses
Telephone, internet & computer costs
Travelling & subsistence
Accounting, professional & bookkeeping fees
Independent examination
All other services
In accordance with the charity's governing documents, one employee serves as a (co-opted) trustee. During the current year, Eilidh Smith (Front of House Supervisor) served as a trustee from January to June and the charity incurred costs of £11,203 in salary and Employers National Insurance costs and pension contriubtions of £423. Corinna Anetts (Curator) served as a trustee from June to December and the charity paid her £19,245 includinding employers National Insurance, and pension contriubtions of £711. In the prior year one of the (co-opted) trustees, Dr Karen Buchanan, was remunerated during the reporting prior period until her resignation in April 2023. She was employed under contract by the charity as the Museum Curator and received remuneration of £10,000 and company contributions to pension schemes of £800 during that priod.. The charity also incurred Employers National Insurance costs in relation to her employment of £741 during the prior year.
None of the trustees (or any persons connected with them) received any expenses in the current or prior year.
The average monthly number of employees during the year was:
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
Endowment funds represent assets which must be held permanently by the charity. Income arising on the endowment funds can be used in accordance with the objects of the charity and is included as unrestricted income. Any capital gains or losses arising on the assets form part of the fund.
The income from the Richmond Endowment fund will be expended on the museum's work.
Income
Expenditure
Income
Expenditure
Events & outreach co-ordinator - these are funds received towards the events & outreach co-ordinator position
Whatever the Weather Wednesdays - to provide activities, and in winter, a warm lunch for members from the community with various challenges
Long term reserve support - these are funds to bolster reserves for the long term
Solar panels - funding received for the installation of solar panels on the museum building
Gaelic development officer - to promote the use of the Gaelic Language with three other Higland Museums across their sites and outreach activities
Bord na Gaidhlig Gaelic Course Convenor - funding for a Gaelic Language Course Convenor
Pushing the Boundaries MGS – to provide an event & exhibitions coordinator over a two-year period
Permanent exhibition improvements – individual donations towards refreshing and extending the museum’s permanent exhibition
Education programme – individual donations to support the museum’s programme of talks, workshops and other events
Signage - funding to improve the museum's signage
Other than those already disclosed in note 10, there were no disclosable related party transactions during the year (2023 - none).