Paisley Art Institute Trustees’ Annual Report and Financial Statements For the year ended 31 July 2024
## Paisley Art Institute
## Trustees’ Annual Report and Financial Statements
For the Year Ended 31 July 2024
Charity number SC000840
Paisley Art Institute Trustees’ Annual Report and Financial Statements For the year ended 31 July 2024
||Contents||
|---|---|---|
|||Page|
|Administrative information||1|
|Trustees’ report||2 - 4|
|Statement of Financial Activities||5|
|Balance Sheet||6|
|Notes to the Financial Statements||7-10|
|Independent Examiner’s report||11|
Paisley Art Institute Trustees’ Annual Report and Financial Statements For the year ended 31 July 2024
**Administrative Information**
**1**
## **The Officers at the Date of This Report are:**
## **Accountants**
McLaren Ross 19 Glasgow Road Paisley PA1 3QX
**Charity Number** SC000840
Paisley Art Institute Trustees’ Annual Report and Financial Statements For the year ended 31 July 2024 **Trustees' Report 2**
The Trustees present their report with the financial statements of the charity for the year ended 31 July 2024. The financial statements have been prepared in accordance with the basis of accounting, and accounting policies as set out in notes 3 - 6 to the accounts.
**Scottish Charity Number:** SC000840 **Address:** Paisley Art Institute 1 Millburn Drive Kilmacolm PA13 4JF
**Trustees during the year:**
Paisley Art Institute Trustees’ Annual Report and Financial Statements For the year ended 31 July 2024
**3**
## **Trustees' Report**
## **Structure and Management**
Paisley Art Institute (PAI) is a charitable, unincorporated organisation. The purpose of the Institute, as recorded in the Constitution dated November 2016, is the encouragement and the promotion of Art by means of exhibitions and occasional lectures, meetings and demonstration classes, and the purchase of works of art or literature or by any other means which the committee determines appropriate.
The Charity's Committee of Management formally meets five times per year and includes the post holders of President, Vice Presidents (2), Secretary, Membership Secretary and Honorary Treasurer. Informal or extraordinary meetings may be arranged throughout the year.
## **Objectives and Activities**
On the 21st of February 2024 the Leadership board of Renfrewshire council accepted our ownership of the PAI collection and in May 2024 we were handed over 246 art items. We continue to assert ownership of a further 150 works and the PAI trustees will proffer evidence in time.
135th PAI Annual Exhibition, 2[nd ] April- 6[th ] June 2024, took place in the Glasgow Art Club. The private viewing was well attended with Anita Manning, a TV presenter and auctioneer, opening the show. Twenty prizes and awards were given to artists for their quality works.
This was a highly successful exhibition of over four hundred artworks, exhibited on 2 levels in 5 galleries. Footfall to the GAC was greatly increased by the PAI exhibition. The Public were encouraged to visit throughout the exhibition period with some from as far as Germany, Belgium, USA and New Zealand enjoying the experience, free of charge. Increased publicity was developed through posters, local and national newspapers and several social media outlets.
At a Special general meeting on Tuesday 11[th ] June 2024, it was voted unanimously that we may have to sell some of the collection to maintain the existence of the Institute and its charitable purposes.
The Paisley Art Institute is now settling into their new home, in the Glasgow Art Club.
The Glasgow Art Club helps facilitate our charitable duties by being able to house and exhibit our art collection for the benefit of the public and tourism. We are partnering with the GAC in promoting art appreciation through talks, demonstrations, exhibitions and awards.
In December 2023, PAI finances gained £1,300 when we took part in a Christmas Fair held at Glasgow Art Club and the 135[th ] Exhibition produced a surplus of £7,900. Against this, PAI has continued to need occasional legal advice, at considerable cost. Also, PAI financed various internal alterations at GAC in preparation for housing our art collection. Overall, the year ended with a deficit of £13,850. While PAI received an advance on art sales of £50,000 during the period, this was repaid on receipt of sale proceeds in September 2024 and the Institute’s cash reserves were enhanced.
Membership continues to grow, standing presently at 340.
**4**
Paisley Art Institute Trustees' Annual Report and Financial Statements For the year ended 31 July 2024
## **Trustees' Report**
## **Financial Review**
The Trustees' policy is to maintain sufficient reserves to cover a minimum of three months' expenditure, excluding exhibition costs and artist payments. Exhibition costs are met from commission on exhibition painting sales and catalogue sales. Artist payments are only payable on exhibition sales completed and paid.
## **Grants Policy**
The charity does not make grants. Awards are made annually on the basis of judging panel recommendations for various categories of art. Most of these awards are funded by sponsors.
## **Risk Statement**
The trustees actively consider the risks to which the charity is exposed and where possible, and appropriate, take such actions as are necessary to mitigate those risks.
## **Statement of Trustees' Responsibilities**
It is the responsibility of 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 the results of the charity for that year. In preparing the financial statements the Trustees are required to:
select suitable accounting policies and then apply them consistently:
make judgement and estimates that are reasonable and prudent:
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue its business.
The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity which enable them to ascertain the financial position of the charity, and which enable them to ensure that the financial statements comply with the constitution. 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 regularities.
Paisley Art Institute Trustees’ Annual Report and Financial Statements For the year ended 31 July 2024
## Statement of Financial Activities 5
|Unrestricted
Notes
Funds
£
Income Resources
Charitable Income
1
54,055
Investment Income
1
51
Total Income Resources
54,106
Resources Expended
Direct Charity Expenditure
2
66,174
Support Costs
2
242
Governance Costs
2
1,440
Total Outgoing Resources
67,856
Net Movements in Funds
(13,750)
Total Funds Brought Forward
36,952
Total Funds Carried Forward
23,202
=============|Unrestricted
Notes
Funds
£
Income Resources
Charitable Income
1
54,055
Investment Income
1
51
Total Income Resources
54,106
Resources Expended
Direct Charity Expenditure
2
66,174
Support Costs
2
242
Governance Costs
2
1,440
Total Outgoing Resources
67,856
Net Movements in Funds
(13,750)
Total Funds Brought Forward
36,952
Total Funds Carried Forward
23,202
=============|Restricted
Funds
£
-
-|2024
Total
Funds
£
54,055
51|2023
Total
Funds
£
43,590
18|
|---|---|---|---|---|
||54,106|-|54,106|43,608|
||66,174
242
1,440|100
-
-|66,274
242
1,440|38,212
253
2,040|
||67,856|100|67,956|40,505|
||(13,750)
36,952|(100)
(13,850)
4,116
41,068||3,103
37,965|
||23,202
=============|4,016
27,218
======================||41,068
=======|
## Paisley Art Institute Trustees' Annual Report and Financial Statements For the year ended 31 July 2024
|Balance Sheet|||6||
|---|---|---|---|---|
||NOTES||||
|Fixed Assets|||||
|Heritable Assets|3|3,812,995|3,812,995||
|Current Assets|||||
|Cash at Bank and in Hand||28,580||42,430|
|Prepayment - Exhibition Expenses|Prepayment - Exhibition Expenses||||
|Debtor|8|50,000|||
|||3,891,575|3,855,425||
|Current Liabilities|||||
|Creditor|9|50,000|||
|||3,841,575|3,855,425||
|The following funds make up these balances:|The following funds make up these balances:||||
|Restricted income funds|10|4,016||4,116|
|Unrestricted income funds||3,837,559|3,851,309||
||11|3,841,575|3,855,425||
Approved by the Trustees on 14 November 2024 and signed on their behalf by: -
Paisley Art Institute Trustees’ Annual Report and Financial Statements For the year ended 31 July 2024
7
## Notes to the Financial Statements
|1
Unrestricted
Notes
Funds
£
Incoming Resources
Exhibition Sales
35,569
Catalogue sales
1,525
Falconer Houston Sales
250
Displacement Costs/Sponsorship
-
Postcard sales
80
Exhibition fees
4,630
Members subscriptions
5,705
Catalogue advertising
710
Prize and awards sponsors
3,800
Courier Fees Received
280
Christmas Fayre
1,377
Other Income
8
Donations
121
54,055
_Investment Income_
Interest received
51|1
Unrestricted
Notes
Funds
£
Incoming Resources
Exhibition Sales
35,569
Catalogue sales
1,525
Falconer Houston Sales
250
Displacement Costs/Sponsorship
-
Postcard sales
80
Exhibition fees
4,630
Members subscriptions
5,705
Catalogue advertising
710
Prize and awards sponsors
3,800
Courier Fees Received
280
Christmas Fayre
1,377
Other Income
8
Donations
121
54,055
_Investment Income_
Interest received
51|Restricted
Funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-|2024
Total
Funds
£
35,569
1,525
250
-
80
4,630
5,705
710
3,800
280
1,377
278
121|2023
Total
Funds
£
23,380
-
870
-
5
5,815
4,800
-
7,430
1,290
-
-
-
43,590|
|---|---|---|---|---|
||54,055|-|54,055||
||51|-|51|18|
Paisley Art Institute Trustees’ Annual Report and Financial Statements For the year ended 31 July 2024
8
## Notes to the Financial Statements (continued)
## 2
|2|2|||
|---|---|---|---|
|Resources Expended
Unrestricted
Restricted
Notes
Funds
Funds
£
£
Direct Charitable Expenditure
Payments to Artists
24,963
-
Exhibition Expense
4,085
-
Commissions
2,485
-
Prizes & Awards
3,500
100
Advertising
325
-
Website
417
-
Insurance
355
-
Legal Fees
10,920
-
Valuation Fees
-
-
Transport/Storage
2,173
-
Submittable
-
-
Own Art
-
-
Archive
-
-
Courier Fees Paid
909
-
Catalogue Costs
2,333
-
GAC Cleaning & Clearing
13,709
-
66,174
100
Support Costs
Secretary/Treasurers Fees
7
-
-
Postage, Stationery & telephone
Meeting Costs
Admin Costs
198
-
-
-
-
-
Finance Charges
44
-
242
-
Governance Costs
Accountancy
1,440
-||2024
Total
Funds
£
24,963
4,085
2,485
3,600
325
417
355
10,920
-
2,173
-
-
-
909
2,333
13,709|2022
Total
Funds
£
13,198
3,409
2,298
5,900
404
369
-
9,480
2,400
-
-
-
-
754
-
-
38,212|
||66,174
100|66,274||
||-
-
198
-
-
-
-
-
44
-|-
198
-
-
44|-
161
-
19
73
253
2,040|
||242
-|242||
||1,440
-|1,440||
Paisley Art Institute Trustees’ Annual Report and Financial Statements For the year ended 31 July 2024
9
Notes to the Financial Statements (continued)
## 3 Heritable Assets
The Trustees have appointed Christies to carry out a formal valuation of its Collection. Approximately 80% of its Collection items have been valued by Christies on a Current Auction Estimates basis. The valuation was carried out on 14 December 2022.
On the grounds of prudence, the valuation included in the Balance sheet represents the median valuation on the above basis for this part of the Collection. This valuation will be subject to change when access is available to the full Collection.
## 4 Basis of accounting
With the exception of Heritable Assets as per note 3 these accounts have been prepared on the basis of historic cost in accordance with:
- x accounting and Reporting by Charities – Statement of recommended Practice (SORP 2005) x and with applicable Accounting Standards.
## 5 Accounting Policies
x Income and expenditure are accounted for on a cash basis.
## 6 The nature and purpose of the funds: -
## General Funds
The general fund is used for the day to day running of the Institute.
## Mary Armour Fund
The artist left £5,000 in her will to be used by the Institute. The Institute presents the William and Mary Armour Award each year at our annual exhibition.
## 7 Secretary/Treasurer Fees
Secretarial fees of £nil (2023: nil) were paid during the year for administrative duties of which. £nil was paid to trustees in their roles as Secretary, Membership Secretary and Treasurer
## 8 Debtor
This amount represents a loan made to Glasgow Art Club on 26 July 2024. The loan is repayable on 1 August 2027 and is interest free.
- 9 Creditor
This amount represents an advance of funds given to Paisley Art Institute by Lyon and Turnbull Auctioneers for a sale of selected artwork which is arranged for after 31 July 2024. This advance will be repaid from the sales proceeds.
Paisley Art Institute Trustees’ Annual Report and Financial Statements For the year ended 31 July 2024
Notes to the Financial Statements (continued) 10
|10|Restricted Income Fund
Balance brought forward
Activity
Balance carried forward|Robert
Sculpture
Edmonds
Fund
Fund
£
£
262
407
-
-|Robert
Sculpture
Edmonds
Fund
Fund
£
£
262
407
-
-|Robert
Sculpture
Edmonds
Fund
Fund
£
£
262
407
-
-|Mary
Armour
Fund
£
3,447
(100)|Total
£
4,116
(100)
4,016
======|
|---|---|---|---|---|---|---|
||||262
==========|407
===========|3,347
==========||
## 11
|Analysis of Net Assets Over Funds
Unrestricted
Funds
Funds
£
Fixed Assets
3,812,995
Debtors
50,000
Cash
24,564
Creditors
(50,000)
Total Net Assets
3,837,559
==========|Analysis of Net Assets Over Funds
Unrestricted
Funds
Funds
£
Fixed Assets
3,812,995
Debtors
50,000
Cash
24,564
Creditors
(50,000)
Total Net Assets
3,837,559
==========|Restricted
Funds
£
-
-
4,016
-|l
Total
Funds
£
3,812,995
50,000
28,580
(50,000)
3,841,575
=========|
|---|---|---|---|
|
Funds
Fixed Assets
Debtors
Cash
Creditors
Total Net Assets||||
||3,837,559
==========|4,016
===========||
Paisley Art Institute Trustees' Annual Report and Financial Statements For the year ended 31 July 2024 Independent Examiner's report
11
I report on the accounts of the Charity for the year ended 31 July 2024 which are set out on pages 5 to 10.
## _Respective responsibilities of trustees and examiner_
The charity's trustees are responsible for the preparation of the accounts in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The charity trustees consider that the audit requirement of Regulation . 10(1) (a) to (c) of the Accounts 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 Charities Accounts (Scotland) . Regulations 2006 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 2005 Act and Regulation 4 of the 2006 Accounts Regulations, and
to prepare accounts which accord with the accounting records and comply with Regulation 9 of the 2006 Accounts 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.
Mclaren Ross 19 Glasgow Road Paisley PA1 3QX
## 14 November 2024