SCOTTISH LANGUAGE DICTIONARIES LIMITED REPORT AND ACCOUNTS. For the year ended 31 March 2015
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1 Company No: SC Registered Charity No: SC SCOTTISH LANGUAGE DICTIONARIES LIMITED REPORT AND ACCOUNTS
2 REPORT AND ACCOUNTS Contents Page Administrative Details 1 Trustees Report 2 6 Independent Examiner s Report 7 Statement of Financial Activities 8 Balance Sheet 9 Accounting Policies and Notes to the Accounts 10-14
3 ADMINISTRATIVE DETAILS Bankers: Clydesdale Bank plc University Branch 29/30 Nicolson Square Edinburgh EH8 9BX Registered Office: 25 Buccleuch Place Edinburgh EH8 9LN Independent Examiner: Chiene + Tait LLP 61 Dublin Street Edinburgh EH3 6NL Solicitors: Morton Fraser Quartermile Two 2 Lister Square Edinburgh EH3 9GL Company No: SC Registered Charity No: SC
4 TRUSTEES REPORT LEGAL AND ADMINISTRATIVE INFORMATION Scottish Language Dictionaries (SLD) is a company limited by guarantee with charitable status. Its financial year runs from 1st April to 31st March. It came into existence on 1 April Trustees Prof J Smith (Convenor, from September 2012) Mrs J Anderson (Depute Convenor; Secretary and Treasurer, from September 2012) Mr W Aitken (Retired September 2014) Dr R Alcorn Mr A Bell Dr W Maguire Dr R Millar Ms C Newton Prof R O Maolalaigh Dr D Robb Ms E Small Mr G Smith (to June 2015) Mr J Tough Staff Dr C Robinson (Director) (FT) (resigned 31/3/15) Dr P Bell (IT Consultant) (PT 4hrs) Ms P Cairns Speitel (Senior Editor) (FT) Ms A Ferguson (Editor) (FT) Ms E Finlayson (Editor) (PT 21hrs) Dr A Grant (Editor) (FT) Ms R Martin (Editor) (PT 21hrs) (resigned 31/3/15) Ms E Webster (Education and Outreach Officer) (PT 21hrs) Mr C McDonald (Administrator) (PT 28hrs) Ms L Dunlop (FT Full time; PT Part time, followed by hours worked per week) Editorial Consultant Marace Dareau Members SLD has a membership of around 100 people at home and abroad, drawn from many areas of life and sharing an interest in the Scots Language. Dr Margaret Mackay, Honorary Fellow in Celtic and Scottish Studies at the University of Edinburgh, is Honorary President of the Company. She attends the Board and the Planning Committee ex officio. Advisory Committee SLD has an Advisory Committee consisting of people with specific expertise who can be called on as required. 2
5 TRUSTEES REPORT (continued) STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document The Articles of Association of Scottish Language Dictionaries Limited (SLD) are in accordance with the Companies Act 2006, Company Limited by Guarantee. Methods of recruitment and appointment of new Trustees Trustees are appointed for three years with the possibility of re-election. They are nominated by the Board and approved by the Annual General Meeting. Any member of the Board or Association may propose a Trustee. The maximum number of Trustees is 15. We aim to have a broad range of expertise on the Board, drawn both from universities, business and from the wider community. Induction and training of Trustees Trustees are inducted at the first Board meeting following their appointment. They are supplied with copies of previous minutes and other materials relating to SLD. Their attention is drawn to training opportunities and to materials on the Office of the Scottish Charity Regulator (OSCR) and Companies House websites. Organisation structure and decision making Ultimate responsibility rests with the Board. Decisions are made at quarterly meetings or by in the interim periods. Reports are submitted to the Board on all projects, and progress is monitored against targets. Financial spreadsheets, minutes and any other relevant documents are circulated in advance of meetings. In arriving at its decisions the Board considers all relevant factors under the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). Volunteers All Trustees are volunteers; they currently claim no remuneration. Trustees collectively spend a minimum of 130 hours per year on Board meetings (13 x 4 meetings x 2.5 hours) and 18 hours for Planning Committee meetings (3 people x 4 meetings x 1.5 hours) exclusive of travel and preparatory reading. The Convenor contributes an additional 40 hours on other matters such as lexicographical advice and appraisals and the Depute Convenor 38 hours on financial and IT matters. Total Trustee input: 226 hours. Risk statement The Trustees have assessed the major risks to which the charity is exposed, in particular those relating to the operations and finances of the company and have identified the key risk as uncertainty of funding. This risk has decreased considerably since 1 April 2009 when the Scottish Government (SG) began providing a grant-in-aid. We have a commitment from SG for three years of 200k per annum funding from 2015 to This grant covers salary expenditure but additional funding, e.g. from memberships, royalties, grants and teaching has to be found to cover other expenses such as rent and services. The risk of insecurity of funding interfering with the organisation s work is a continuing concern. We are tenants of Edinburgh University with the current lease being from 1 April 2014 to 31 March 2017 on premises at 25 Buccleuch Place, Edinburgh, and have Associated Institution status with Edinburgh University. 3
6 TRUSTEES REPORT (continued) OBJECTIVES AND ACTIVITIES Objects of the charity The principal objective of Scottish Language Dictionaries is to provide Scotland with an independent professional organisation to record and publish data of the languages of Scotland. We aspire to make our linguistic heritage easily accessible to all, both at home and abroad. We monitor the language people actually speak and write and encourage the use of Scots for all purposes throughout the community. We see outreach to the community as a crucial part of our activities, regarding language as one of the foundation stones of culture, education and social integration. Charity s aims We aim to stimulate knowledge of the languages of Scotland at home and abroad. As a lexicographical body, we aim to extend the achievements of the Dictionary of the Older Scottish Tongue (DOST) and the Scottish National Dictionary (SND), now united as the online Dictionary of the Scots Language (DSL). We also aim to produce smaller publications for general or specialist use such as the Concise Scots Dictionary and the Essential Schools Scots Dictionary. In all our work, we make full use of relevant information technology. Activities in Our focus has been on advancing core projects and extending outreach work. In deciding priorities, the organisation takes account both of established needs for new products and of the longer-term needs for resources for the Scots language and its speakers. Staff have made substantial progress on the new edition of the Concise Scots Dictionary which will be published in early 2016 by EUP, and the revision of the online Dictionary of the Scots Language, and have undertaken an increased programme of community and educational activities. Performance indicators Quarterly progress reports are submitted to the Scottish Government (SG) as our major funder. Targets for longer-term projects such as the revised Concise Scots Dictionary are set in terms of numbers of files or headwords completed over a certain period. Qualitatively, lexicographical work is referred to members of the Board and Advisory Committee with relevant experience; major publications are reviewed in the press and academic journals. Performance is assessed quantitatively through sales figures, website hits and interest shown in other ways by the public, such as invitations to speak at community events, schools and conferences. FUTURE PLANS We follow the Business Plan drawn up to 31 March Its emphasis is on progress in core projects and forward planning for successor projects and securing funding for both. 4
7 TRUSTEES REPORT (continued) FINANCIAL REVIEW The year finished with Total Funds of 85,217 (2014: 86,652). Principal funding sources Scottish Government core funding 200,000 Scottish Government project funding 2,528 Outreach earnings 8,542 Memberships 1,623 Donations/grants 1,247 Royalties 891 Reserves Policy The company s policy is to try to build up a reserve equivalent to three months running costs as protection against any funding difficulties. It is hoped to progressively build up this fund by the generation of unrestricted funds such as subscriptions and royalties. Funds not required within a three month period are lodged in an interest-bearing account; 30,000 was deposited in a Charity Deposit Account with Virgin Money in December The account pays 2.62% interest and instant access to funds is permitted. Statement of Trustees Responsibilities The trustees (who are also directors of Scottish Language Dictionaries Limited for the purpose of company law) are responsible for preparing the Trustees Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare accounts 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 these accounts 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 accounts; and Prepare the accounts on the going concern basis unless it is inappropriate to presume that the charitable company 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 charitable company and enable them to ensure that the accounts comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). 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. 5
8 TRUSTEES REPORT (continued) Small company provisions This report has been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006 and with the Financial Reporting Standard for Smaller Entities (effective April 2008). ON BEHALF OF THE BOARD Professor Jeremy Smith Convenor
9 INDEPENDENT EXAMINER S REPORT TO THE TRUSTEES OF SCOTTISH LANGUAGE DICTIONARIES LIMITED I report on the accounts of Scottish Language Dictionaries Limited for the year ended 31 March 2015 which are set out on pages 8 to 14. This report is made to the trustees of Scottish Language Dictionaries Limited as a body, in accordance with the terms of my engagement. My work has been undertaken to enable me to prepare the accounts on behalf of the trustees and to report my opinion as set out below and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the trustees and members of Scottish Language Dictionaries Limited, as a body, for my work or for this report. Respective responsibilities of trustees and independent examiner The charity s trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 (the Act) and the Charities Accounts (Scotland) Regulations 2006 (as amended) (the Regulations). The charity trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the 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 independent examiner s statement My examination is carried out in accordance with Regulation 11 of the Regulations. 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 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 accounts. Independent examiner s statement In the course of 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 Act and Regulation 4 of the Regulations, and to prepare accounts which accord with the accounting records and comply with Regulation 8 of the 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. Jeremy Chittleburgh BSc CA CHIENE + TAIT LLP Chartered Accountants and Independent Examiners 61 Dublin Street Edinburgh EH3 6NL 7
10 STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING INCOME AND EXPENDITURE ACCOUNT Un- Restricted Restricted Total Total Notes Funds Funds Incoming resources Incoming resources from generated funds: Voluntary income 2 202,870 2, , ,073 Activities for generating funds 9,433-9,433 7,603 Investment income Total incoming resources 212,815 2, , , Resources expended 7 Costs of generating funds 1,327-1,327 1,363 Charitable activities 209,847 4, , ,620 Governance costs 1,596-1,596 1, Total resources expended 212,770 4, , , Net (outgoing)/incoming resources 45 (1,480) (1,435) 1,834 Fund balances brought forward at 1 April ,728 5,924 86,652 84, Fund balances carried forward at 31 March ,773 4,444 85,217 86,652 There were no recognised gains or losses other than those included in the Statement of Financial Activities. All activities relate to continuing operations. The notes on pages 10 to 14 form part of these accounts. 8
11 BALANCE SHEET Notes Fixed assets Tangible assets 8 4,757 6, Current assets Debtors 10 2, Cash at bank and in hand 84,531 85, ,950 86,633 Creditors Amounts falling due within one year 11 6,490 6, Net current assets 80,460 80, Net assets 85,217 86,652 Capital and reserves Unrestricted funds 13 80,773 80,728 Restricted funds 13 4,444 5, ,217 86,652 Audit exemption statement the company was entitled to exemption from the requirement to have an audit under the provisions of section 477 of the Companies Act No notice has been deposited with the company under section 476 of the Companies Act 2006 requiring an audit to be carried out. The trustees acknowledge their responsibilities for Ensuring the company keeps accounting records in accordance with sections 386 and 387 of the Companies Act 2006; and Preparing statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its deficit for that financial year in accordance with the requirements of sections 394 and 395 of the Companies Act These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and the Financial Reporting Standard for Smaller Entities (effective April 2008). Approved by the Board on and signed on their behalf by:... Convenor Professor Jeremy Smith... Depute Convenor Mrs Jean Anderson Company No. SC The notes on pages 10 to 14 form part of these accounts. 9
12 NOTES TO THE ACCOUNTS 1 Accounting policies Basis of accounting The accounts have been prepared under the historical cost convention and in accordance with the Companies Act 2006, the Statement of Recommended Practice Accounting & Reporting by Charities (SORP 2005), the Charities (Scotland) Regulations 2006 (as amended), the Charities and Trustee Investment (Scotland) Act 2005 and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008). Going concern The accounts have been prepared on a going concern basis. The Trustees have assessed the Charity s ability to continue as a going concern and have reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. The Trustees believe the charity is a going concern based on the fact that funding has been secured to 31 March Core funding is received from the Scottish Government. Thus they continue to adopt the going concern basis of accounting in preparing these accounts. Incoming resources Grant and donations income shall be recognised in the period when the charity is entitled to use the resource. Resources expended Resources expended are included in the Statement of Financial Activities on an accruals basis and are recognised when there is a legal or constructive obligation to pay for expenditure and is inclusive of irrecoverable VAT. Costs of generating funds comprise those costs associated with attracting voluntary income. Charitable activities costs are those costs expended on meeting the charity s objectives and the support costs of running the charity. Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements. Tangible fixed assets Fixed assets are included at cost. Expenditure below 500 is not capitalised. Depreciation is provided on tangible fixed assets at rates calculated to write off the cost, less estimated residual value of each asset over its expected useful life as follows: Computer equipment 20% straight line Heritage assets The Trustees are mindful of the disclosure requirements under SORP 2005 for Heritage Assets. The Trustees have identified several items as Heritage Assets as detailed in note 9. The Trustees consider that whilst these are Heritage Assets, they are of little commercial value. As a consequence no value can be placed on these items for accounting purposes. Operating leases Rentals payable under operating leases are charged to the Statement of Financial Activities as incurred over the period of the lease. 10
13 NOTES TO THE ACCOUNTS 1. Accounting policies (continued) Fund accounting Unrestricted funds are expendable at the discretion of the Trustees in the furtherance of the objects of the charity. Restricted funds are funds that can only be used for particular restricted purposes within the objects. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further details on the nature and purpose of restricted funds are set out in note 13. Pensions The Charity operates a defined contribution pension scheme. Contributions payable are charged to the Statement of Financial Activities in the year that they are payable. 2 Voluntary income Scottish Government core funding 200, ,000 Scottish Government project funding 2,528 - Donations 1,247 1,276 Membership subscriptions 1,623 1, , ,073 3 Interest receivable Bank interest Taxation The Charity has charitable status and is exempt from taxation. 5 Employees Employment costs: Salaries and wages 167, ,468 Social security costs 11,886 12,562 Pension contributions 3,696 3, , ,511 == Average number of employees is 10 (2014: 8). There were no employees whose annual emoluments were 60,000 or more. 6 Trustees remuneration and expenses The Trustees received no remuneration in the year (2014: nil). During the year travel costs of Nil were reimbursed to one Trustee (2014: 25). 11
14 NOTES TO THE ACCOUNTS (continued) 7 Resources expended Costs of generating funds Books 8 53 Printing costs 1,319 1, ,327 1,363 Charitable activities Research and editorial Employment costs 182, ,511 Payroll fees 1,080 - Stationery and postage Depreciation 1,585 1,585 Rent and service charge 18,457 11,796 Telephone Travel 1,195 1,166 Other costs 2, IT costs 394 6,284 Consultancy costs 4,307 19, , ,620 Governance costs Independent examination 1,596 1, ,596 1,548 Computer 8 Tangible fixed assets Equipment Cost or valuation As at 1 April ,927 Additions As at 31 March , Depreciation As at 1 April ,585 Charge in year 1, At 31 March , Net book value At 31 March ,757 ======= At 31 March ,342 ======= 12
15 NOTES TO THE ACCOUNTS (continued) 9 Heritage assets The Trustees have considered the requirement to report the nature of Heritage Assets under the control of the Charity. The Trustees have identified the following as Heritage Assets:- DOST Library This consists of materials used in the compilation of A Dictionary of the Older Scottish Tongue. Most of the books are modern editions of Older Scots works. The oldest dates from The older books are in very poor conditions, having been subjected to much use. While these books are invaluable for the specialised work of our organisation and are available for consultation by students, they are of little commercial value. The collection also contains a number of handwritten and typed transcripts of no monetary value whatsoever. Scottish National Dictionary Collection The bulk of this was split up after completion of the dictionary. The residue of the collection has been added to by the acquisition of books and journals needed for the modern Word Collection. Reference Collection SLD also has a number of reference books such as dictionaries and linguistic text books. The Trustees are of the view that these heritage assets are of little commercial value and as such no value can be placed on these items for accounting purposes. 10 Debtors: All receivable within one year Gift Aid Prepayments and accrued income 2, , Creditors: amounts falling due within one year Accruals 1,596 1,548 Other creditors 4,894 4, ,490 6, Operating lease commitments The annual operating lease commitments are set out below: Land and Buildings Leases expiring: Within one year - - Within two and five years 8,300 8, ,300 8,300 13
16 NOTES TO THE ACCOUNTS (continued) Unrestricted Restricted 13 Funds Funds Funds 2015 Balance as at 1 April ,728 5,924 86,652 Net incoming/ (outgoing) resources 45 (1,480) (1,435) Balance as at 31 March ,773 4,444 85,217 ======= Represented by: Tangible fixed assets 313 4,444 4,757 Net current assets 80,460-80, ,773 4,444 85,217 ======= Opening Ex- Closing Restricted funds Balance Income penditure Transfer Balance Project Grants Fund 5,924-1,480-4,444 Scots Dictionary for Schools App - 2,528 2, Total 5,924 2,528 4,008-4,444 ======= Project Grants Fund: represents funding from The Scottish Government for specific projects. Scots Dictionary for Schools App: represents funding from The Scottish Government specifically for the development of the Scots Dictionary for Schools app, which launched during the year. 14 Pensions The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension costs charge represents contributions payable by the charity to the fund Contribution payable by the charity 3,696 3,481 14
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