Aberdeen based orchestras of fiddles and accordions that practice, perform and preserve traditional Scottish music.

Finances, investment and reserves policy

Finances

The attached financial statements show the current state of the finances of the Society. As a result of the change in the accounting year end the prior period comparative figures are for 12 months as opposed to 11 months for the period just ended.

Total funds income analysis

Total funds expenditure analysis
 
Concert income and expenditure for the period has increased mainly as a consequence of the Society's share of the four Fiddlers' Spectacular shows in April 2008. The surplus from the Fiddlers' Spectacular of £2,822 is the largest contribution to the total surplus for the period. There was no equivalent event during the previous financial year, although the Society did hold its own concert at the Cowdray Hall and the Highland Hospice concert in Inverness.
 
Donations income has increased primarily as a result of one-off donations, including the estimated value of donations of musical instruments and other goods or services received. This has been offset by a reduction in Non-commercial concert donations due to the shorter accounting period as well as fewer bookings.
 
Grant income for the period includes funding from Aberdeen City Council for the orchestra trip to Stavanger in June 2008. There was no equivalent grant funding application last year.
 
Subscription income has increased due to the inclusion of Gift Aid recoverable on the membership element of the subscriptions and an increase in the number of members.
 
Fundraising income has decreased for a variety of reasons. A number of activities were undertaken during the year to 31 March 2008 to raise funds for the Stavanger trip in June 2008. There have been no corresponding events in the period just ended. In addition CD and tapes sales have been lower.
 
This has been offset by income from a free service offered by Easyfundraising.org.uk which donates sales commission from members internet shopping initiated via the easyfundraising site, as well as internet searches undertaken via a dedicated search engine website. Although fundraising expenditure had decreased overall, the cost of the CD and Tapes sales is higher for the period reflecting a reduction in value of the stocks as their age increases.
 
Interest income is higher as a result of increased cash balances throughout the year and the decision to invest in higher rate fixed term bonds during the period, offset by falling interest rates and the shorter accounting period.
 
Rehearsal premises costs are lower as there is one less month of rehearsals included due to the change in the accounting period, offset by an increase in rent charges from September 2008.
 
Income from Tours and trips is slightly higher due to the trip to Stavanger in June 2008, compared to the Inverness trip for the September 2007 Highland Hospice fundraising concert in the previous financial year.
 
Expenditure from Tours and trips is significantly higher due to the travel and accommodation costs of going to Stavanger compared to Inverness. In the year ended 31 March 2008 the committee had transferred from the general purposes fund an amount to cover the expected difference between the Stavanger trip income and expenditure. Subsequently two additional orchestra players elected to attend the Stavanger trip and the additional subsidy of travel and accommodation costs along with some additional local Stavanger costs resulted in a deficit for the period of £2,422, requiring an additional transfer from the general purposes fund of £625 to add to the funds brought forward, prior to closing the Stavanger Fund.
 
Admin and other costs are slightly higher, primarily as due to the cost of public notices advertising the change in rehearsal premises and additional committee expenses. The 2009 costs include the value of CDs donated by Mike & Ali Vass for issue to the juniors, there was a similar value in the previous period relating to copies issued to orchestra members of the Society's latest CD.
 
Instrument & trophies depreciation is higher due to two additional instruments donated during the period, offset by only 11 months of charges due to the shorter accounting period.
 
Balance sheet items
During the period in anticipation of further reductions in interest rates the committee invested surplus cash balances in Standard Life Bank fixed rate bonds with maturity dates of less than 1 year, resulting in current asset investments of £8,000 at 28 February 2009.
 
At 28 February 2009 there is a deferred income balance within creditors in relation to deposits received from orchestra members for the planned Shetland trip in October 2009.
 
There were a number of significant items within the balance sheet at 31 March 2008 relating to the Stavanger trip: trade creditors of £4,879 for travel costs already invoiced; other creditors included deferred income for payments already received from members; and within debtors was £5,771 prepayments for the trip which included the travel costs deposit already paid.
 
The Society is grateful for the donations it received towards its costs from the various nursing home and church concerts that it has played at during the period as well as those that have contributed to its other fundraising activities.
 
Funds in deficit at the end of the period
The Iain Fraser Award Prize Fund had a small deficit of £3 at 28 February 2009. The prize is paid in advance of income earned from the related Endowment Fund. The funds are invested in fixed rate bonds to increase the certainty of the income generated, however the recent unprecedented size of decreases in the Bank of England base rate occurred before the maturity of the existing bond and reinvestment in another fixed rate bond resulting in lower interest income than was anticipated at the time the prize was paid. The deficit will be addressed by reducing the next prize payment.
 
Contributions from volunteers
The members of the orchestra volunteer their time through weekly rehearsals, attending concerts and assisting with fundraising efforts.
 

Investments

The Society invests funds, including endowed funds, in deposit accounts with recognised UK financial institutions which may be of a fixed term nature. The aim of such investments is to achieve the best available investment income returns, balanced against minimising risk to capital, whilst meeting the cashflow requirements of the Society.
 

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 £6,400.
 
This is considered sufficient to cover:
  • two years’ costs of rehearsal premises and administration costs - approximately £2,000 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 £900;
  • 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 £14,992 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:
  • funds of £1,000 designated for the forthcoming Shetland trip in October 2009;
  • other concert events in which the Society may participate, so funds may be specifically designated;
  • organising further taster sessions and increasing advertising to attract new members;
  • arranging for external experts to provide Scottish music skills workshops to the orchestras; and
  • purchasing additional instruments to be provided on short term loan to new members interested in taking up Scottish music.
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.
The Society’s bankers are:

CAF Bank
25 Kings Hill Avenue
Kings Hill
West Malling
Kent ME19 4JQ
Bank of Scotland
54 John Street
Aberdeen
AB25 1LL
Standard Life Bank
Dundas House
20 Brandon Street
Edinburgh
EH3 5PP

The Independent Examiner is L Craig, 18 School Lane, Drumoak, Banchory, AB31 5EA.
 
For and on behalf of the committee
 
K Gill, Secretary
30 April 2009

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 (unless the charity is entitled to prepare accounts on the alternative receipts and payments basis). 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;
  • state whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed in the financial statements; and
  • 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 applicable law and regulations. 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.