The trustees present their annual report and financial statements for the year ended 31 July 2025.

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 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 objects of the Society shall be to advance the education of the public and in particular the local community in the cultural, historical and natural heritage of the Garioch and its environs. In furtherance therefore, but not otherwise, the Society shall seek:

• To buy, collect and attract donations of local history, source materials of a diverse nature to add to our already large and comprehensive collection consisting of newspaper cuttings, photographs, scrapbooks, slides, films, videos and hardware such as old tools and household articles;

• To maintain and preserve in good condition all the aforementioned source materials for the benefit and enjoyment of present and future generations;

• To provide local schools with source materials which can be used to complete local history and/or environmental studies projects;

• To provide adequate access to reference and research materials for anyone who is researching a local subject within the limits of source materials held by the society;

• To have monthly meetings, apart from the months of July and August, to allow members of the general public as well as society members to hear various presentations given on subjects local to the area known as the Garioch. Should Holy Week fall during the first week of April there would be no meeting that month. In addition there will be at least one annual exhibition where sources of various kinds will be laid out and exhibited for the interest and enlightenment of members and the general public;

• to liaise with Aberdeenshire Library and Museum services for the mutual benefit of the three groups.

The trustees have paid due regard to guidance issued by the Office of the Scottish Charity Regulator (OSCR) in deciding what activities the charity should undertake.

Business in the centre for the last year has included the usual mix of art exhibitions, craft fairs, antique & collectors markets and conferences, with the recent addition of the Rock Choir.

The Lego 'Brick History' exhibition in October/November was well attended as were the popular 'Singing Kettle' and 'Critter Keeper' shows. Other successful Society events included a Model Show, the Garioch Christmas Market, a quiz night and a Murder Mystery evening.

Another event which is proving to be an annual favourite is the Christmas Tractor Run which is hosted by the Centre.

Guided tours of the museum continue for local groups with the addition of tours from cruise ships docking in Aberdeen. Two have visited to date with another twelve due between July and September.

The centre took part in the commemoration of the anniversary of the end of WW2 in Europe. In conjunction with Inverurie Events we held a vintage car show.

Society talks this year ranged from bridges to boats to bees via the cold war, National Trust and genealogy - quite a mix and our excellent outing to the Gordon Highlander Museum in Aberdeen was attended by twelve members and friends.

We have had repairs done to the roof ridge where the flashing had been damaged by high winds and the ineffective flood barrier has been re-installed, making an effective seal. These were not cheap and add to our financial burden. Rising energy costs and the raising of the minimum wage and national insurance are being felt already and will ultimately mean that we will have to raise our charges overall.

Acknowledgements

Every volunteer is a valuable cog in the wheel, as it were, without them it could well be a bumpy ride. So, grateful thanks go to everyone who gives of their time, in whatever way, to do what is necessary to keep us running as smoothly as possible.

Unrestricted funds are derived from members' subscriptions, meeting entry fees, donations, café sales, sale of books & pictures and fundraising events. Unrestricted funds are used for the day-to-day running of the society. The unrestricted funds held at 31 July 2025 for the General Fund were £131,840 (2024 - £98,482) and the Designated Fund were £219,383 (2024 - £220,110).

The restricted funds held at the year end relate to the property held in the Statement of Financial Position. The restricted funds held at 31 July 2025 were £415,964 (2024 - £425,208).

Sales of our own books, DVDs and local postcards and postcards through a number of other local outlets, provides a small but steady source of income.

As a result of a surplus in the year of £23,387 (2024 - deficit of £25,186), the total funds held at 31 July 2025 were £767,187 (2024 - £743,800). These reserves are being carried forward to support the future work of the society.

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 charity is a company limited by guarantee, incorporated on 9 July 2009. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. It is registered as a charity with the Scottish Charity Regulator.

Directors and trustees

The directors of the charitable company (the charity) are its trustees for the purpose of charity law. The trustees and officers serving during the year were as follows:

Directors:

Ann-Marie Coleman (Chairperson)

Nora Radcliffe

Gilbert G. Bruce

Joan H. R. Bruce

Committee:

Griselda McGregor

Sheila Tait

Alison Auld

Jenni Cruickshank

Ivy Guyan    

Lorna McAndrew (resigned May 2025)

Carol Robertson    

Andrew Wood    

Recruitment and appointment of committee members

Committee members are appointed or reappointed by the members as and when required.

Related parties

None of the management committee receive remuneration or other benefit from their work with the charity.

The trustees have a risk management strategy which comprises:

• An annual review of the principal risks and uncertainties that the charity faces;

• The establishment of policies, systems and procedures to mitigate those risks identified in the annual review; and

• The implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise.

The trustees' report was approved by the Board of Trustees.

The trustees, who are also the directors of Garioch Heritage Society for the purpose of company law, are responsible for preparing the Trustees' Report 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

- select suitable accounting policies and then apply them consistently;

- observe the methods and principles in the Charities SORP;

- make judgements and estimates that are reasonable and prudent;

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006, 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.

I report on the financial statements of the charity for the year ended 31 July 2025, which are set out on pages 6 to 22.

The charity’s trustees, who are also the directors of Garioch Heritage Society 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 Charities Accounts (Scotland) Regulations 2006. 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 seeking 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.

Investments

The statement of financial activities includes all gains and losses recognised in the year.

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

Investments

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 July 2025.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Garioch Heritage Society is a private company limited by guarantee incorporated in Scotland. The registered office is Garioch Heritage Centre, Locoworks Road, Inverurie, Aberdeenshire, AB51 4FY.

The financial statements have been prepared in accordance with the charity's articles of association, 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). 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 unless otherwise stated in the relevant accounting policy. 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 charitable company 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 or grantors 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.

Assets for distribution are recognised only when distributed. Assets given for use by the charity are recognised when receivable. Stocks of undistributed donated goods are not valued for statement of financial position purposes.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

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. Shared costs have been allocated fully to charitable activities.

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).

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

Cash and cash equivalents include cash in hand and deposits held at call with banks.

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 charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1998 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

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.

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual value of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

At each reporting end date, the company reviews the carrying amount of its property to determine whether there is any indication that the asset has 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).

Government grants

Investments

During the year two trustees were reimbursed for repayment of charity expenses totalling £425 (2024 - two trustees reimbursed totalling £536).

The average monthly number of employees during the year was:

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

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.

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 Property Fund was in place to enable the purchase of the building used for the museum.

These are unrestricted funds which are material to the charity's activities, made up as follows:

The Property Fund is unrestricted funds which have been designated by the trustees to be used for property purchase and development purposes relating to the museum building.

There were no disclosable related party transactions during the year (2024 - none).