SHETLAND ARTS DEVELOPMENT AGENCY TRUSTEES, REPORT & FINANCIAL STATEMENTS for th8 year ended 31 March 2026 Ch8rlty Regislr3llon No SC037082
SHETLAND ARTS DEVELOPMENT AGENCY CHAIRPERSON'S MESSAGE 31 MARCH 2026 As Chair of Shetland Arts Development Agency. l am pleas8d to present our Annual Flnanclal Stslemenl for the year ènding 31 March 2026. This year rngrks the fir81 undgr now multi-year funding 8gr8ements with both Shetland Charitable TnJ$l and Crealve Scotland, prowdlng a more stable foundats'on from which to plan an dellvei Qur work. Despite thi$ increas&d securlty, the org8ni$8tlon eontinues lo operate wilhln a challengiNJ environment. Rislng costs and ongoing staffing pressures have required carelLJI management and resilience from our team. I would like to recognise thè eemmilmenl and adaplabllity ol staff who have conllnued lo deliver a high- quallly programme In Ihese ¢ir¢umstances. Over the past year. Shèlond Arts has mainlalned 8 slrong level of a¢llvlty ar¥J Impact across Ihè islands. Within the 12 mDnlhs of this report, we pres•r)ted more than 3,700 perfomances. screenlngs and exhlbilion days with ovèr 220.000 audlence engagements. Our programrnes continue lo support ¢reallv• development, cornmunlty connection and wellbeSng, wlth consislenlly hl9h l&vels of audience $g1isfaction and posltlve feedback. W• hav8 also conllnu•d lo Invesl in the cr#8Jvè •conomy. supportlng praclllloners and micro-buslne$$es, wh518 enabling rnÉw wtrrk. collaboraliun5 and $kllls development. Thls contrlbulSgn remains viial to sustainiNJ vlbranl and re$lllenl cultural séctor In Shetland. Thls y•gr has also beon one ol transition and 8nllclpallon. Wlh Bonhoga closed fer mlurblshm•nl, there has been an inevitable impa¢t on dellvery. However, Ihls project repTesenls a $Sgnlficanl Inv8Blmenl In th6 future of Shetland's cullurBI infrastructu, and we look forward lo re¢penlng an improved, mwo accessible and more suslaln9ble laclllty In the ¢omSng year. Al Board lev81, I would like lo welcome Krislofer Wilson. Charlotte Jon•s and Jacky Willlamson lo the BoArd. l also extend my thanks lo my fèllow Tru8te&$ for Ih•lr conllnued cemmllment In suppcrtlng and guldlng the Organisalion. Flnally. I would Ilke lo thank our core lunders, Sheland Charltable Trust and Creatlve Scotland, for thglr conlSnuad Investment and Confidence in our work. My thanks also go lo our staff, partn$rs, audSence8, parucipants, performars and students your engagement and support are central lo everythlng w• do. Wl)Ile challenges remain, the orggnisatlon Is well placed to buSld on this y$arfs progress. With renewed lundlng. ongolng ¢apllal d8velopm8nls, and a Clear fo¢us on Impact, we look fomard with catruS oplm15m lo the year ahead. Jarnle Manson Chair, Sheuand Arts Development Agèncy
SHETLAND ARTS DEVELOPMENT AGENCY ANNUAL REPORT OF THE TRUSTEES 31 MARCH 2026 The Trustees are pleased to present their annual Trust88s' Rèport together with the financial stat8mants ol the chaflty for ihe year ellding 31 March 2026. The financi81 stslements eomply with the Charities and Trustee Investment {s8nd) Ael 2005, the Chari1105 Accounts (Scollandl Regulations 200818$ 8mendedl, the trust deed and Acccjunling Reporting by Charities.. Stsl¢ment of Re¢¢mmended Praclire applicabl¢ lo chaiilles preparing their a¢Gtsunls in acurdancè with th6 Financial Reporting Standard applicablè In th¥ UK and R$publio ol Ir&land la5 aMded for accounllng periods comrnenGing 1 January 20191 Ith8 SORPI. OBJECTIVES AND ACTIVITIES Shetland Arts, prlncip81 objèctivès are laid out in the 8upplemenlary Deed of Trust regi8terad on 30 October 2020. Tho objects ol the agency are to.. advance the education of the publlG resldenl In Shetland In the Arts, In particular the Arts ol Dance. Drarna, fhealre, Fllm, Llleralure, Music, Crafts, Vlsual Arts and any new fom ol Mèdla; advance Arts and Culture lor the benefit ol the publlc In Shelland., advance Cldzenshlp and Cornmunlty Development forthe benefit of the public In Shetland. In furtherance of the objects the Truste¢$ $hg11 seek lo.. encourage and a88181 Sn promollng and advanclng the creatlon, practice, preBentalion and ¥ludy ol all lom8 of art- vl¥u?I, p?rformlng and creallve- 8UPPOrt and encourage the ntInUal development ol 911 art lorms., 8UPPOrt exl6tJNJ, arKI encourage new. work., Improve g¢¢e88 to tho 8rts and create ¢pportunlll•s for Indlvldual$, geographl¢81 communltlas and communllies ol Int•r•sl, at all l•v•ls of •xp•rlanc• and abillty, to participate in and enjoy a div•TS• rang• of arts Actlvlty through p•rformanc•s, •xhlbillons and educalionBI activitles. Iv) creale opportunllles lor person81 development through a communlty development approach wlthSn the arts: promote a culluffj of Illelong leamlng through a Gommunlty devdopment approach wllhln the art$-, support profgsslonal artlgts through regldencies, workshops and pgrfomi8n¢g$,' promote exc811enc8 in artistic quallty,. develop the skllls and experlence of artlst pradtioners and particlpants aThJ encourage learnlng; and Ixl provide fa¢blilie$ lo Support artisllc activili¢g.
SHETLAND ARTS DEVELOPMENT AGENCY ANNUAL REPORT OF THE TRUSTEES (CONTINUED) 31 MARCH 2026 Introduction We employ a robust process of evaluation for each element of every project we d85iver. Every octlvity 18 submltted to the Leadershlp Team on a Project Proposal Form IPPFI thal contsins a narrative statement and describes how the proje¢l lateS lo our Trust Deed, whlth programrne arèa it is part of, which art ftsms li lates to and wh8ther the work Is contemporary, populisl or Ir8ditional. This fonr also sets the Kay P8rlormance Indlcalors IKPlsl and the budgeL l elements of the activlty are considerèd, particularly how the projects will dèllver our soci81 outcomes. Tho Leadershlp Team sets key mlleslones and receivos regular updates, with monitoring requlrements being dlctBted by the 5¢ale ol the pmject. Once an actlvlty is complel•d the PPF 18 revlewed against actual$ and leB$ons are leame<J where approprlate. Munlhly KPIS arè ccllated for each project and Mported to our Truytees, Shetland Charltabl& Trust and Creafjve Scotland and made avallable on our website. Soclal Outcom•$ As part ol the appllcat4¢n process to Créative Scotland and Shetland Charitabl• Trust our Soclal Outcomes wero revlewed and have evolved. Thelr allgnrn8nl wlth 8 range of local and nAtlonal strategles 56 ¥liS1 kay. These are how the organi88tion designs rts work programme, Improved quality of Ilfe through gfèat•r accèss to ¢reatlve 8nd social exrn¢t$ 2. Improved opportunSlle8 through the devèlopment ¢f new skllls 3. Improved confidence lo contn'bule posillv¢ly throu9h 9&ter opportunS1185 for 8elf4xpresslon and communlty Involvement 4. Improved fe•llng of Incluslon and •quallty through 8n 8ppr•cigllon of a dlversity of cullures and Ilfestyle5 5. Improv9d monlal and physi[ health through morg aGlive Involv•mont In creative and soclal experignces 8. Improved ¢ommunlty r•slllence through a more dSverg8 cr•atlve economy Although many of gur acilville$ w511 dellver against mor8 than of our sool•l outcomes, our inlentl¢n 18 10 focus on the two thai are th¢ roason we a dolng 11 and report against them. In our norralive reportlng w8 acknowledge that a partlclpanl or audience mèmb•r may well havg Qxperlenced a dlfferent Smpacl than we Intended. and we will m8ko every allempl lo cBpture their story. We use a variety of methods to ptUre our Impact Induding partlcSpanl surveys, feedback, comm9nts on sodal medla 8nd emails.
SHETLAND ARTS DEVELOPMENT AGENCY ANNUAL REPORT OF THE TRUSTEES (CONTINUED) 31 MARCH 2026 Achl•v•m•nts & Perfornianc• The table below shows the key perforrnance indicators for the year. This will be followed by hlghllghts from the work under each social oul¢ome durfng the year. Concerts. Screenlngs and Exhlblllon Da Actuals Development Sessions Attendances 221 159 208 682 106% Partlcl allons DÈllvèred Ta %ofTar 3,909 97% et Delivered 62Dh 930 Concerts. Screenlngs and Exhibition Da Impact Development Sesslons Attendances Partlcl atlon$ Imprtsvèd quallty of Illè through greater access to creative and soclal experiences 166 310 59 Improved opportunllies through personal and professlonal transferrable Bkl118 217 e85 Improved confidence lo cLTrnlrlbulg poslllvaly through opportunllle$ for sell- expresslon and Gofflmunity involvemènt 350 26,578 798 Improved f••llng of incluslon and aquallly through greater underslandlng of other cultur•8 and lifestyles 418 29 514 Improved mental and phyBical health through mor& a¢liv$ Involvement In ¢re811ve and social gXP8ri8ncès 131 lrnproved cornmunlty re$llience through a more diverse creative economy 149383 318 She119nd Arts dellvers a large variety of events, exhlbitions. woth$hop3 and a¢tiwli¢¥. 8¢low ig a ¥rnpll sample lo illuslrale how we have beon dellverlng agalnsl our $wlal outcomes. Improved quality of lile through greater access to creative and soclal experiences Hlghllghts of activity that delivered thi5 50ci?l oulcorn During 2025-26, w8 delivorad 3,139 perf0mlans, scr8enSrrfJs and gxhibition8, feaching 166,310 attendanS across SheUaThJ.
SHETLAND ARTS DEVELOPMENT AGENCY ANNUAL REPORT OF THE TRUSTEES (CONTINUED) 31 MARCH 2026 Our programme combinedlgcal, national and intemallonal work. ensuring audiences could accèss high- qualily cultural expÉrlènces wilhoul leavlng the islands. Hlghlighls Sncluded Homgmade 2025, showcasing locally produced $hort filrns, alongside ¢urated cin8ma sèasons such as W?5 Anderseason and Splelberg Sgason. and the ¢ontlnued preséntation of Natlonol Theatre Llv& scrèanings. Live perfomonce remained central, with 8 divèrsa programme spannlng theatre, dance and mu¥lc. Events like Bodle$ of Water and After All brought contemporary performance lo local audiences, whlle live music and spoken word gvents including appearan3 by Hullie McNlsh, Michael Pedersen and Ros&anne Watt expanded tbtt ranga ol artistic voices represented. Family Snd yeaT8 8udianc8s were ervJaged through inleractlv• work such as A Home for Hamlsh, while largè-scale communlty moments indud1ng the Hogmanayc8l•brations and themed cinema evenis created shared cultural expefienTrs. Touring acllvlty also extended rea¢h beyond Lerwick, wlth Snitiatives such a5 the Splor• tour bringlng theatre and dance lo rural Communities, 8nsuring gèegraphlc a¢cess acros$ th• Islands. AUdIen feedback confjnues to highllght th¥ Importance of Ihls prov151gn In supplytlng connectlon, enloym•nt and a sense ol place. 'Mybalrn loved Ihis evenl, she llY enjoyed walchlng Ihe bands l 8lso enjoyed walchlng the bands ond gr8pfiIc8.' .1 loved bgln9 Part of somglljing 10¢81 that sllll lell wortd-clgss." 'It was so lunny andgrn81 to seo Ihls G8llbre of t818nt In SlJetl8nd.' Imprtsv•d opportuniliey through the development of new sklll8 Hlghllghlg of actlvity that delfverèd thls soc181 outcome We d•llvored 888 leamlng and development $05slons, wllh 5,798 portlclpallons across all age group¥. Formal edu¢#llen prograrnmes, dÈllvored In p*rtnèr8hip with UH5 Shetland. supported 8tvdonts to aehl•ve accredlled ouleomos In creallve 8ublecls. Student 8h¢w¢ases, Prize-glving 8nd publlc presentations provided opportunities to demonstrate leamlng and bulld confidence Sn profe$$Sonal settings. Early-stage engagement was sUPPOrt•d through work 8xpgri8nco placements and Inform81 laamlng opportunities, th portlclpanls 98lnlng Sn51ghl into 8rea$ Such aB l?rhnlca5 productlon, clnoma operations and event dolivery. Artlst development remolned a CO strand. Through VACMA 8nd the Shetland Arts Commlsslonlng Fund, w& Supported practitioners to develop n•w work, Including projects suth aa O Da Bog, Garbanzo. and Story Sbam fjevelopment. Residèncy acfjvity Including Emlly Briggs. Mareel ro8idency and the Mulrls Tlr land 8nd sea residency provided $lru¢lured lime for rosearch, experimentation and collaboratlon. Skills developm8nt also extended into particrpxtory workshops, including physical th•alre. Graft and textile work IFELn. and crèallve writing ¥lorytelling sessions Ilnked lo Story SSam activity. "lkn neverdone &nylhlng lik6 this beforn aut Wes made completely 81 e8S9 and could Ghallonge myself al my own level... legmt a lol.. °She188m8d 8 lol and m8d8 new friends. 11 was e great expeiyene& all round."
SHETLAND ARTS DEVELOPMENT AGENCY ANNUAL REPORT OF THE TRUSTEES (CONTINUED) 31 MARCH 2026 Improved confidence to contribute posillvely through greater opportunltles for selfoxp(ession and community invotvemenl Highlighis of activlty that dellvored this social ¢ut¢ome A range of infom81 and structured plafform$ supported sell-expression. Ini118tive8 like Shetland Story Slam created new opportunitSos for personal storylelllng In a publlc setting. whlle Soup & A Showand open-slag• èvènts encouraged performers to test and shar& néw work in a suppoitvé environment. Regular Artlst Me81-Ups provlded 8pace for peer exchange, dlscussion and informal presentation, contributing to a stronger sense Cf creative ctsmmunlty and shared practice. Youth engagement remalnad a prlority. D$dl¢al¥d youth ¥rts ¥¢llvity and oppLYtunltlgs for young filmmakgrs and muslcians-partlcularly trrough Homemade and youlh-focused evenls-enabled partldpanls lo present work publicly and gain recognition for their creativity. Support through VACMA and commi55loning allowed Indlvldual art181s to develop and preserbl work, with spotlight fealurts hlghllghllng pract10nr]OUMQy$ 8nd •nMuraging widér partiCiP81ion. Ther? Ss evld$neè ef progmssion from partlc5pat5on lo Inlllafjon, wllh IndIlOIS and groups devel¢plng Ihglr own prolects. collaboration8 and events. demon8lratlng Increased confidence and agency wlthln tho cullurgl seGlor. '11,8 nice to shgre my work In a publlc place grterhavlng il hldden away In the studlo- It$ glven m& confid&nce b¢)osl.' Was lovely lo see 811 Iha young chlldren 8nJoylng Ihems&lv&$ on the $18ge, and be¢omlng ¢onndenl 8nd Gomforteble In Ironl 018 IIv8 audlenc8," Improved feellng ol In¢lu81on 8nd equallly through an appredalion of a dlverslly of cultures and Illastyleg Our progr8mrne contlnued to prfori118è In¢luslon, repreBentalion and accesslblllty. Proleclg SLKh 88 X-change Shetland fex•s 9xplorod Intemgllonal Collaborafjon and cultural exchangg, connedln9 Shetland.based artlsls wlth global neorks. Work $u¢h as Ultlmatg Thul*8EEand related eommunity workshops created Snclusive, Intergeneiational partlcipation opportunities rootad In local Sdantlty. Partlclpalory projects including FEL Tencouraged engagement with heritage, mal8rials and shared making practlces, while welcornin9 participan18 regardless of prior exp?rienGe. Prttgrammlng also addressed soclal themes directly. Partnershlp work with Shetland Foodb8nk, Including hority reenIng$, and exhibitions such as Second Chances cr6&ted space lor relleetlon on social justlcg, recovery and cornrnunity support. Perf0mnCe and touring work brought diversè perspectives lo local audiences, induding contemporary dance, theatre ond storytelling 8xplortng Identity, pl8¢& and lived &xp9ri8n¢e. The Access and Inclusion Group continued to guide Improvements In accassibility. communlcalon and audSence experien, ensuring that barriers to participation are actively addressed. Faedback indicates that a[lenCeS value both thè diversity of work presented and ihe incluslve environment in which it Is dèllvtsred. 'It Is so goorl lo have dlscusslons wllh Ihose bwlh flrsl hond experienoe of Gaza and see artwoth bypeople who sra still there, in ourlocal arts centre.. °Evenls Ilke Ihls make Shetland feel more inGlusive andopen to dlfferenlperspectives..
SHETLAND ARTS DEVELOPMENT AGENCY ANNUAL REPORT OF THE TRUSTEES (CONTINUED) 31 MARCH 2026 Improved mentsl and physical health through rnore active involvement in ¢reative and so¢lal xperiences Creative participallon cr)ntlnued lo p18y 8 significant role supporting w8llbeiThJ. During the year. 1,765 participants engaged in activlty designed to support mental 8nd physical health. This included ylnjctured wellbeing programmes such as Slnglng Momas, which provided regular tsppertunitles for SOGla5 connedlon thr¢ugh group slnging. Workshop5 and partlcSpatory aclbvity. In¢ludlng movement-based yesslons, craft workshops and refl¢ctlve Creallve pradlces. oflered arLesslble routes Inle engagement for incllvlduals seeklng Iow-pressure environment8. Projects Ilk• the Rememb•rlng Together COVID-19 memorlal and as$oclatsd book launch ¢r8aled opportunlties lor lleCtIVe relleclion and processlng ol shared experioncès, conlribulbng Its longer-term emollonal wellb$lng. Addition818clivity. Induding nature-based and mateflal-focusad workshops le.g. FELD, supported mlndful engagement and connoctlctrn lo place, wh1ch is particularfy relevant in Shetland's conlexl. Regular cultural partlcipatlon, Ihrou9h gttandlnu evènts, scrèènlngs and performances, also conlrlbLblès to w•llbeing by redu¢lng i601allc*n and providlng routlne opportunitles for sodol Inl•raclion. Ftedb8¢k damonslral&s clear Impact, wth pgrtlcApanls r•p¢rtlng Improved ffl0. reduc•d 81rès5 and Increased sense of ¢onn8cUon. "Il's Just $0 good forlhe soul- I carne In Ilred ond18ft smlllng.. °Takln9 Part helped m8 Ihrnugh a l¢Wgh Ilm&-11 g$ve mfr fo¢u$ and c81m.' Improved ¢ommunlly r88lll•nce through g more divers? cmallve economy WO supported 874 8rtl$ls. èlanGerS and cr8atlvè mlcro-busSness?B through commls8loning, r•sldencles. fad16tle¥ And sector d•velopmènl aclw. The Sh¢tlandArts Commissionlng Fund and VACMA inve8lment enabled artig1$ to daveltp and preBenl naw work locally, supportlng relentson ol creative talent wilhln th8 islands. Funded proj?ct8 $panned mulllplo dSs¢ipllnes, including p8rfoTman¢e, vi8uo18rt, film and Interdl[pllnary pra¢lic•. Resldenq actlvlty, Including Muirls Tlr and artl814ed research 8nd development prolaots. supported experimenlallon and eollaborallon, often connÉctlng local practitioners wlth national and InleTnalional networks. Inltlatives such a¥ Even Here. Even Now $trenglhened Int•r-Island collabor8llon. conlribullng lo a bro¥d8r reatlv• ectssy8l•m aGro8s Scotland's Island ¢¢mrnunitlos. Provlsion of fa¢ilities, includlng studio space, le¢hnlcal sUprt and presentation platfoms, enabl artists lo produce work professionally wlthin Shetland. Events such as arts and crafts fair3, exhibilions and s¢reenlng8 providgd routes to market and audièncè development. Se¢lor vlsibillty was further svpported through communlcations actlvily, indudlng artist spotllghts, blo fèatures and promollon of opportunities, helplng lo bulld a su5tsinabl• and ¢onnected cr8aiive ¢ommunlty- This combined approach contrlbutes lo a more r85ilient ¢alIve economy, enabling practlllonoi8 to sustain Ihelr Work localty while contributing lo Sh¢fjand's cultural and economic life. 'Being an 1518nd artisl can be quite a solitaryprofgsslon al limes, so its gr88t to gel opportunllies lo connect wlth othgrartists in Shetland and ecross other Is18ndcommunities."
SHETLAND ARTS DEVELOPMENT AGENCY ANNUAL REPORT OF THE TRUSTEES (CONTINUED) 31 MARCH 2026 'I'v8 s£8rt8d sglling my workb8oaus& of th8 visibility Ihis g&v8 m8- Ih81's lif8-¢h8nging.' Volunteers We work wlth volunteers In 8 numbar of dlffèrènt Ways. This includes our voluntary board of Trust8e6. festival volunteers and delivery vtslunleers. DurTng the yB8r volunteers contributed 1,281 hours ol their lime lo the oryanlsofjon. Change Management Lhjring the finan¢lal year a restructure of the organisalion look place which changed the structure of the Le8dorship Team. Thls change rnade the leadership ieam leaner lo allow for additional 8laff al other levels wilhln the tsrganisation. FINANCIAL REVIEW The 2026 financial year wa8 the fir31 year ol new fvnding agreemen15 wllh Shetland Charllablo Tru$l and CrealSve Scotland allowing the organlsalion lo movo fomard In a posllivè way. Th¢ $u¢¢èssful fundlng appllcatlons to Shetland Chgrlloble Twst forthe perlod Irorn 2025-2030 and lo Creative Scotland for 2025-2028 have given certainty golng forward. The Ifuslees are ¢onfidenl that Ihe organisatlon wlll remain 8olvenl as projecllons lo 30 September 2027 Show the organisatson in a suitable financial position. The Lead&r8hip Team will also review results monthly and w511 act qulckly if cost savings are r¢quirod. The movement on the Unrestrioted Funds for Ihe year was £50,29912025- £nlll. Thls rnov&rn•nl of £50,299 In Unresiridèd Funds Comes after the deduction of depreclatlon In the year of £588.575. This dapreclatlon Is partly offsal by a transfer made from the Resth'cted Capital Fund lo Unreslrlcted Funds of £576,260. Thls Iran8fgT is done lo r$cognis$ the fact Ih?l PItal grants recelved in this year and durlng earller finandal period8 should be amortlsed ov&r the Same usefvl lilolimo as the ass•ts lo whlch they relèle. Th8 Total Incoming Resources for the year were £2.701.18112025 - £2,870,968) Made up 98 follows: 2026 £ 2026 % 2026 £ Revenue grants received 1.431,528 53.0% 1,243,785 43.30 Capital grants received 51,853 1.9% 4eB.895 16.3% Self.generaled incorre 1,207,855 44.7% 1,140.144 39.7% Inlerost r¢¢¥ivod 8,404 0.30 15,033 0.6% Donations and SPC4nsorship 1,541 0.10 3.111 0.1% TOTAL 2,701,181 100% 2,870,968 100% We received annual rèvenue funding of £1,050,000 frorn Shetland Charitabl6 Trust ISCTI and £358,905 frorn Creative Scotland ICSI during the year. Proleet funding was rec&lved from various funders, Including CreatlvÉ S¢oU3rnd, Cy¢le UK and Highlands and Islands Enterprise. This funding. combined with th8 use of our revenup funding 8nd gentrraled in¢uffle has allowed the range of arts aclivlty descrlbed under'Actbvllles, A¢hlevem&nts and Performance. lo lakg place during the year.
SHETLAND ARTS DEVELOPMENT AGENCY ANNUAL REPORT OF THE TRUSTEES {CONTINUED) 31 MARCH 2026 Total Roswr¢os Expended w8s £3,235.52612025 - £3,067,976) made up as follows.. 2026 £ 2026 2026 £ 2025 Stock and goods purchases 284,830 8.8% 256,649 8.4% Charitablè activities 2.950,696 91.2% 2.811.327 91.6% TOTAL 3,235,526 100% 3,067,978 100% Grants were 9lven out by Shetland Arts In the year of £7,6(X) 12025 - £10,000). These are conlalnad in the Charitable A¢VleS Ilne above and further details of the grant scheme are contained in note 8b. All 5tsff St$ are induded In charltable aclivllies abové and have Increased from £1,143,049 in 2025 10 £1,513.655 in 2026. Due lo th8 new fundlng agreements the organigètion was able 10 51aff up to increas• ¢9paty to undertake projects. Shetland Arts Ig an approvad rnomber ol the Shetland Islands Council Pernslon Scheme, In Ilne wllh guldance on th& recognlllon of pension scheme assets, Shetland Arts have not recoynised the deflriBd bÉnèflt pension scheme pssel Bs the imp8Ct of the a$$el ¢eSllng Is lo redu¢& the nel pansion osset to £nll. RESERVES POLICY In Aprll 2018 the Truslgeg approved a new reserve8 pollcy. SADA worklng towards socurfno ad8quale res•rves to meet current and potential lulure n8sds. The organlsatlon gims lo havè unr•slrl¢ted reservB$ of 8t18asl £200,000. whl¢h wlll allow the organlsatlon lo m8et any unexpe¢l¢d expenditur• that may &rlg8. Ihln Ihls r8$erve, lund8 will bè designated lo an A88el Replocemenl and Ft&palr Reserve. In any year th81 th• organisallon m8kg8 a surplu5,.50tyh ef Ihls $urplus WI be de5ign81e¢J Into thls fund, Tho fund wlll be used for the replac•menl and repair of tho 8ssats of the organlsallon. Total funds as at 31 March 2026 8re £7.353,411 12025 - £7.887.75el. Th18 18 8plil been Regtrfct•d Funds of £7,186,90712025- £7,771,551> and Unr•$lrt¢te(l Funds of £166,50412025- £116,205}. A deSignaen 01 £25.149 was made to the A88el Repl8cemenl ond Repalr reserv8 In the year to 31 March 2026. Th• tnjstees acknowledg¢ the current posillon 1$ ¢hallenglng and they expect11 lo be 8 medlum.lo.long term objecllve lo reach the poslllon slated in the res•rves policy. Th• staff tearn has beèn charged lo increase surplus from in¢om• lor us to xhleve Ihl8 P051tion wh1 thè Mxt three year8. PLANS FOR THE FUTURE Fundlng We have spent th¢ last 12 month dÈveloplng a fundraising 8tralegy that will be Implemented over thè n•xt three years. The plan$ are to increa8¢ Investment from sp¢ns¢rshlp and Trusts and Foundallons lo 10% of our lolal funded income. R•glonal Role We continue to develop Shetland Arts, reglon81 role in partnership wlh The Pier Arts C8nter in Orkney, An Lanntalr in Harri$ and Taigh Chear5?bhagh Museum & Arts Centr• in North Ulst. 2026 127 should s$e the initial projects from the Islands Growth Deal begin lo come lo fruition. The inclusion of Even Here Evèn Now in the Seottlsh Govemmenl l$18nds Plan 15 signiflcanl recognlllon ol the work of Shelland Arts and we look forward to expanding into new territories. Facilities We wll Continuo lo Invest in our f8cilifj8S Wlth investment frum a varfety of souiees. The support from Shetland Charitablè Trusts Capital Giants scheme has enabled us to improve and or replace some key area5. Funding from Cycle UK h8s enabled investment in a electric cargo bike and blke sheil wlth recharge facilltiÈs.
SHETLAND ARTS DEVELOPMENT AGENCY ANNUAL REPORT OF THE TRUSTEES (CONTINUED) 31 MARCH 2026 REFERENCE AND ADMINISTRATIVE DETAILS Trustees Chrfs Gadsby Hannah Hough Malcolm Innes James Johnston Charlolle Jones Michele Kery Kerry Larbaleslier Calriona MacDonald Susan Mail Jamie Manson Shona Mi51er Jacky William50n Krislofer Wllson Reslgned 23 August 2025 Resigned 25 June 2026 Appolnted 25 August 2025 Vlce Chalr Resigned 2Q July 2025 Resi9n8d 23 August 2025 Chair Apptynled 25 Jun6 2026, Rssign8d 25 August 2026 Appoinled 25 Augusl 2025 Appthnled 25 Jun8 2026 Chlef Executlv& Gra9me Howell L8adership Team Kerry Llewellyn Kerry Llewellyn Calrlona Macdonald Bryan Peterson Wendy Tulloch Support Lead Ttr 37 May 2025 Director of Operalions From l Jun& 2025 Director of CrealSvSty and ImpaclAppolnlod 1 D•cember 2025 Education and Outreach Lead RosèneG13t May 2025 Cuslorner Experfence Lead Rssh)n•dJl Mèy 2025 Address Shetland Arts Development Agency Mareel L8rwl¢k Shetland ZE1 OWQ Audltor8 AJB Scholes Ltd Sl Olaf's Hall , ChurGh Road Lerwick Shetland ZE1 OFD Bankers Vlrgln Mon8y 106 Commerclal Slr8el LerwSck Shetland ZE1 OJJ Sollcltorg H8rper mle0d Sl Olaf's Hall Church Road Lerwck Shetland ZE1 OFD Foundlng Trust Dged R89islered on 13 January 2006 Charltable Status Scottish Charity No. SC037082 STRUCTURE, GOVERNANCE ANO MANAGEMENT Governing Oo¢umènt and Organisation Shetland Arts DevelopmentAgency 55 an unlncworaled Registered ScottSsh Charity, consllluled uThJer Intrst deed. The organisalion isgovemed by a board of trusteeswho are responsible for long-temi planning and strategic deciqk)n making. delegalty)g the day-Io-d8yoper8I'on81 deaslon maklng to Ihe Chief Executive. Appointment ol Trustees, thelr Inductlon and Tralnlng Tha truste85 meet birymonlhly to administer the activities of th8 Agency. During the year th8 Trust Daed uired the board to be compris1 of a minifftum of seven trustees, and a maximum of thirteen. Each Ir shall hold Offi for a period ol three ywdrs with power lo be re.appointed for a further period of three years. io
SHETLAND ARTS DEVELOPMENT AGENCY ANNUAL REPORTOF THE TRUSTEES (CONTINUED) 31 MARCH 2026 Trustees will retire on the third anniversary of their appointment. In the event of appointment for that furthèr period, such trustees TM51 not be eligible for appointment for a period of three years thereafter. The appointnEnt of newlrusleeswll be thejob of a Nominallons Committee constiluied by three of the serving Iruslees. Tmslees are nomally recrLJited lollowng public advertlsement. The positions of Chair and Vlce Chair are voted on bylhe existirrfJ trustees, these offlce hokJer8 serve In 8ccord8nce th the Agency'8 Standing Orders. The Iruslees make decisions by malorftyvote al theirmeetNYJs. The board holds meellngsevery months wllh a more detailed infomialion session on speciflc topics of intere81 In the months between. New trJ$lee8 recelva individual1ndLKdon fTom the Leodership Tean on appc4nlnEnt and are encouraged lo undertake Irdining as approprfate lo thelr rol8. Pay Poll¢y for Sgnior Staff The trustees conslder that the charily'y trustees Bnd Leadershlp Team comprise the key management personnel of the Gharfty in charge of direction and conlrolllng, Nnnlng and operdling the charity on a day-to- day basis. The Leadershlp Team ¢omprf8es thè Chief Executive, Director of Crealivily and Impact and the Dlreclor of Operallons. All tru8tees give their lime freely and no Iwslee receivèd remun8rallon in the year. Details gf Iwslee'8 expens85 are dlsc108ed In note 19 of the accounts. The pay of thè senlor slaff 1$ reviewed annually. The pay rale3 are benchmatl(ed against Ihlrd sector pay In Shetland. Thg pay of the ChSef ExeGullve l& sel by the trustegs. Ro18ted Partle8 Shetland Arts DevelopmenlAoency Is funded bylhe Shelkgnd Charllable Trust lo deliver arts sertes lo the community in Ilne th Ihelr 2025- 2030 Strategy. Their priorities include Community wellbelng., Indivldual wellbelng., Everyong mallers., Generatlonal falm¢$$ ond Enabllng strong and re8111enl organlsalions. Shetland Arts DevelopmenlAg8ncy also recelves revenue lunding from Cmllve ScolSand, d8pendenl upon Its subm15sp)n lo them of an annu81 progranO 01 o¢llvities. This progr8MTr musl meet Cre811ve Scotland's own crllorla gf Quality and AmbSllon'. EngagerHenl', Equolltl8s. Dlverslty and Incluslon. Environm8nlal Suslalnablllly and Foir Work. Shetland Arts IP C.l.C., o Cornmunlly Inlgre$l Cotrpany, wa9 incorporated on 25 July 2011. The Company18 wholly owned byShelkn(J Artg Developn*nl Agenry 8nd was sel up 88 a means to secure the IntelleGlual property rights over films, books, musSc, atc. and ensure that any profits generated Sn Ihls way can b9 retalned forlhe goDd of Sh¢lknd. During the flnanoal year. th¢ company's t1ans8ctrt$ were not mglerial to the group, so Gonsolidalion of tha flgures was not quIred. Rlsk Mgnggement The Trustees have 8ssessed the major rfsl¢s towhl¢h the charity is exws8d and are satisfied that systems are in p18cg lo miligale our exposure lo the major risks. The new rfsk of climalo change has been added during the year. The table below highlights tho risks the board have identlfSed being the most signSflcanl. Rlsk Tille Risk Delall 'MSllgglion Approprf81e Pay and T&C8 Tralnlng and Wellbeing provision Ctsod nallonal profile lo enable recrultmenl (Tru81ees & Staff) Critical PcesS Planning Le&Jershlp Loss of key leader8 or key indlviduals that the organis81ion dopends upon and cannot be replg¢ed eaBiIy Lack of Govemance Govemance arrangements have Illlle or no systems In place lo Identify and monitor compllance Regular fomal and infomal meetings Mrilh key reports Complete the SCVO Govemanc& Check Up Annual Audit
SHETLAND ARTS DEVELOPMENT AGENCY ANNUAL REPORT OF THE TRUSTEES (CONTINUED) 31 MARCH 2026 Rlsk Tille Risk Detail Mitigation Loss of Reputalioft nd l or stakeholder confidence l trijst Rlsk that an incldent or situation creates an environment that confidence 15 eroded or lost. So¢ial Outcomes Access to specialist comms freelancers Good informed relationship with stakeholders Active man8gemenl of Social Med6a and publlc èrtgagèmènt Exl$mal Impacts Being unable to manage and adapt lo societal shocks. e.g. P8ndtrmi¢s, Di5rupllon ol Inl¢rnallonal Trade, Significant change of Natlonol Polit11 Direction En$uro staff stru¢lure Is flexlble En8ure staff are current in training Bu51ne5s Conllnu1ty Planning Relalionshlp wllh stakeholdws Finance Un8xp8et8d shortfall in lunding to Income affectSng the abll+ty lo deliver agalnsl medlum-lerm plans Dlv•rslty Ol Core Funding Able to ro18e pr¢e¢l lundlng from alternative source$ Focus on traded I commercial incomè Ensure funding is claimed in a Umely fa5hkn E$l81&8 Largo, unexpected e81a1 Issues Proactive A88el Mana9•m&nl Regular & Reactive Malnl&nanco Sulficienl Insuranco Legal l Regul81Sons Ba¢h ol leg81 or Ilc•nclng condltlons Tr81ned Staff Us• of professiongl advisors Use of aud5tors Proactlve relationghlp with Ilcenclng body Cllm818 Change Rlsk lo organlsalion 8ug181nablllly In Ihg fa of ongolng ¢llmole change Impacts Use of Hybrid wkIng U$0 of onllne Meollng$ wllh partners Invèst In laclllti•s to Mdu¢e carbon usage Use of carbon budgetlng Cyber Securfty Loss of organlsallonal dats, ransomware att8¢k8, or IT failu disrupting QPgrallon$ and domoging reputs11. Use ol robust InfraslNcture and 3afeguards U5¢ ol wEb-ba$ed tools whorg appropriate e.g. Monad, Web Hostlng Reminders about cyber security, phishing emails etc in SADA news Cyber Insurance In place S8fegu8rdSng Failure Ic* adequately safe9uard Children or vulnerable adult$ involvgd in Shetland Arts, activities results in hgm lo indlviduals and signlflcant r8PUtailonal, legal. and financlal dBmagts to the organisalion. Clear PVG policies in place PVG check8 and safer recruilmenl practices Staff trxinlng and elèar reportlng processes Deslgnaled Safeguardlng Lead STATEMENT OF TRUSTEES, RESPONSIBILITIES The Trustees are responslble for preparing the annuol Trustees, Report and the financlal statements in ac£ordance wrth appllcable law and United Kingdom Accountlng Slondards Iunlled Kln9dom Generally Accepted Accounting Practice). 12
SHETLAND ARTS DEVELOPMENT AGENCY ANNUAL REPORT OF THE TRUSTEES (CONTINUED) 31 MARCH 2026 Th• law applicable lo charities In Scotland requires the tnjstees to Prepa finan¢ial statements for each financial year which glve a true and fair view ol the state of affalrs of the charity and of th¢ inming resources and appllcation of resources ol the charity for that period. In preparing thesè finanaal slalements. the Iruslees are requlred to.. Sèlèct suitable acCoUnng poll¢les and then appty Ihern consistently., Obsèrve the methods and prfn¢iples In the Charities SORP IFRS 1021.. Make jud9ements and eslkngtes that are reasonable and prudent,. Slate whether appli¢abie accountlng standards have been fellowed, Sublect lo any fflaleii85 d8partures disclosed and explalned in the flnanclal stalemenls; Pr8pare ihe financlal 3lalemenl$ on the goiThJ concern bagis unless 11 Is Inapproprlole to presum that the charity will ¢ontlnye in operatlon. The trustees are responsible for keeping proper accounting records that dlsclose with reastsnable ac¢uracy at any rne the fin3nclal position of the charity and enable Ihem lo ensure that the finan¢lal s181èm•nts comply with Ime Charllles and Trusletr Investmènl (Scotlandl Act 2Q05, thé Charilles A¢counts Iscoilandl Rogulgtlon$ 211J8 las amgNledl and th• provlslons of the charity's conslllullon, They are also regponslble for safeguarding Ihe assats of lh& Charlty 8nd hence lor laklng re8son8ble 51gp$ for the pr•v¥ntlon and d•t8clSon of fraud and other Irregularille$, The trust••s are tsgpen8ible lor the malnlenBnce end integrlty ol the ¢harily and flnancial Inf¢rmalion Included on the ¢harlty's wgbsile. Leglslalion in th& Unllgd Klngdom goveming th• preparatlon ond dissernlnallon ol th• ffinancial $tst8ments mlghl dlffer from l¢gl$latlon in other lurlsdlcllon8. Approved by Ihe board of Irusl&g8 on 25 June 2028 Und slgned on Ih8lr behalf by: Jomi• MAnson Chalrperson 13-
SHETLAND ARTS DEVELOPMENT AGENCY INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES 31 MARCH 2026 Opinion We have audited the ffnan¢ial $18lemenls of Sheuand Arts Development Ayency Ilhe '¢harity'l for the year ended 31 Mar¢h 2026 whlch compflsÉ Slalement of Finan¢i81 A¢tivitle5. the Balanc8 Sheet. Statement of Cash Fl¢)ws and notes to the ffinanclal stslements. in¢luding significant accDunting policies. The financigl reporting framework that has been applied In their preparatlon 1$ appllcable 18w and Unltod Kingdom Accounting Standards, including FRS 102 'The Financia1 R8POrting Stsndard applicabl• In th• UK Ènd Republic ol Ireland" Iuniled Kingdom Generally Accepted Accounting Practlcel. In our opinion the flnan¢lal slalemenl$'. givo a truè and falr vlew of thè st81è ol the charity's 8ff8ir$ 8$ at 31 March 2026 and of its in¢oming re8ource$ and app11catlon of re$ource$, for the year then ended.. have been property prepared In ac¢ordan¢e with Unlled Klngdom Genorally A¢c&pled Accountlng Practicè., gnd have been prepafftd in accordance with the requirements of the Charities and Trustee Investment (Scollandl Act 2005 and regulation 8 01 the Charitr'e5 Accounts (Scotlandl Regulatlons 2006 las amended). Ba¥1¥ lor oplnlon We have been appolntsd as audltor under $?ctlon 441111¢) of the Ch8rlllo$ and Twsleg Inveslmenl IS¢otlandl A¢1 2005 and report In &c¢¢idance wllh regulallons mada under that Act. We conducted our audll In o¢cordance with Intemallonal Standards on Audlting IUKI IISAs IUKII and appllcablo law, Our r¢spon$ibilltles undei those s¢an¢Yards are lurther described In th& Auditorfs re8ponslbllitl•s for the audll of the financlal st@temonl$ etIon ol our Mport. We 8r• Ind•p•ndonl of the charfty In accordance with the ethical requirements that are relevant to our audil of the financlal stat&m•nts In th& UK, Includlng th8 FRC'8 Ethical Standard and we have lulfilled our elhical r86ponsibililies in accordance wllh these requlremenl$. Wo belleve that the audit evidence we have c4Jlained is sufficlenl and approprfale lo prevldo a basls for our oplnlon. Concluslons rolatlng to golng concern In audlling the flnancial slalements, we have ctsncluded th81 Ihts Iruslee$' use of the golng ¢oncèrn ba81$ 01 accounlbng Sn the pparal¢n ol tho flnancial 8lal•menls 18 approprialo. Based ¢n th• Work we hava performed, wo have not IdentSflod any mgtgrlal un¢artain119s r81aling to evan18 or conditions that. indlvldually or collects'vely. may casl slgnlficanl doubl on the ¢h9rf1y'$ abllity lo Continue a8 8 golng Concern lor a period of at lea81 fv4elve months from when the financial slatemenls are authorfsed lor issue. Our re8pon8lbilllles and the rnsponslbllllle8 of the trustee8 wllh respect lo golng nceM are de8Crtbed in tho relevanl $ectlon$ of IhSs report. other Informatlon The other inforrnalion compriges the infomi8lion included in the annu81 report other th8n the financlal statements 8nd our audltor's report Ihereon. The Iwslees are rgspon$ible for Ihe other infomallon con18ined wlthln th• annual report. Our opSnion on the financial stat&mants does not cOr thè ethar inlormation and, we do not express any fomi of assurance conclusion thereon. Our Tesponsibility is lo read the other Inforrnalion and, In doing $0, conslder whether the other Information Is materially incon5islenl with the financial statements or our knowledge obtained in the course of the aud51 or olheTWi5g 8ppearg to ba mBl¢ri811y misslaled. If identify such malBrial incon513tencie8 or apparent malerlal mlsslalements. we a requlred lo delemine whether Ihls 9ivo$ rlse lo a materi81 mlsslalemenl In th8 flnancial statements themselves. If, based on th6 work w• hav• perfomi•d, w• concludè that thèrÉ 1$ mmterial misstatement of this other infomiaiion. we are required to report that fact. We have nothiwYJ to rtport In this regard. 14-
SHETLAND ARTS DEVELOPMENT AGENCY INDEPENDENT AUDITORS. REPORT TO THE TRUSTEES 31 MARCH 2026 Matter8 on whlch we are r•qulred to report by èxc•ption We have nothing to report in respert of the following matt&r$ where the Chadtias Accounts (Scollandl Regulations 2006 las amended) requir• us to report to you if, In our opinitsn: the inform'on given in the financial 51alemenls Is Inconsislernt In any materi81 wp8cI with the Iruslees, annual report,. or proper accounting reeords have not been kept.. or th• financlal slalements are not In agre$rnent with the aceountlng reoords,. or we havè not re¢elved all the information and explan8tlons we require for our audll. R8sponsibllltle¥ of trusteès As explained more fully in thè slatemenl of trustees, responsibilities t out on page 13 the Irust•es are responsible for the preparallcn of the financial statements and lor being satisfied that they give a true and fair view, and lor such internal control as the Iruslees determine 1$ necessary lo en8bl8 Ihe preparallon of fin8ncial slalemenls that are free from material misstattsmant, whether due to fraud or error. In preparing th• finanGlÈl Stslemenls. th8 trusle•s ore responsible fur assassing th• charfty'8 ability lo continue as a 905ng concern, disclosing. as applicable, matters rel8led lo going conc&m and using the golng concem basis ol accounbng unless thè trustees ellher intend Ir) Ilquidale Ihe charlty or lo cease operation5. or havg no r6alistic allarnatlve bul lo do 80. Audltor's rosponslbllltl•s for th• oudlt of thfr flnanclal $tatam•nts Our objectives are to obtsin reasonable assurance oboul whèther the financlal slalements as a whcle are free from material mi88lalemenl, whethtrr du& lo Iraud or error, and to1ssue an au(lilorfs report th81 includè8 cur opinlon. Re88¢n8ble assurance is a high level of assurance. but IB not a guarante? that Bn audll conducted in accordance wlth ISA8 IUKI will always deteol a malerlal mlsstatemenl when il exists. Mi$stal•m&nts con arise from fraud or error and ar• considerad matsrlal 51. Indlwdually or in the aggregale, they could rea$onably be •xp8cted to Influence the economlc doclslon$ of usèrs taken on the b5818 cf these financial statements. Thg •xtent to whlch th• audlt Wa8 ¢onsldered c•pAbh of d•tectlng Irr•gul8rltl•B, In¢ludlng fraud Irregularilles gre Snstances of non.compllance with laws and regulallons. The objectiv89 of our audit arg to obl8ln sufficient 8ppropriat• audit evidence regordlng compllanc8 With laws and regulallon8 Ih81 have a dlrect eff¥cl on the dètermlnatlon of Tnaleri81 amount5 and dls¢losur¢$ In the financi81 statements, lo perform aud51 pro¢ed¢Jres to hèlp Identty in$lan¢es of non-ctsmpll8n¢e wSth other laws and rngulalions that moy havo malerlal 8ffe¢l on th8 finan¢lal stslemenls, and to r•spond approprial¥ly lo Identified or $u$pecled non- compliance wSlh laws and regulallons It1enlified durlng the audll. In relgllon to fraud. the oblècllve8 ol our gudll a to Identify and osses3 th$ r19k of msleriel mlsstalemenl ol the flnanci81 $latements due lo fraud, to obtain sufficlonl approprbale audit evidence gardIng the assegs•d risks ef maledal mlsslalèment due to Iraud Ihrou9h designing and Implernenfjng 8pproprlat& re$p¢n$e$ ond to respond approprlalely lo IrAud or suspected fraud Sdenlified during th• gudll. However. 11 is the prlmary SponSIbIlIty ol managemènt, wlth the ov¢r8ight of those charged with gov&rnance, to ensure that the @ntlty's operalior18 ar¢ conducted In accordance with the provlsions of laws and regul8llons and for the prgventlon and detecll¢n of fraud. In idenllfylng and asse$$lng rlsk5 of malgri?I mlsstaternenl In r•spect of Irregularitiès, Includlng fraud, the audit engagement team.. obtsined an undÈtslandirrfJ of the nature of thè sector, Including th¥ lagal and regulatory framework, that the charity opèratas In and how tho charity is complylng with the legal and règulatory framework,. Inqulred of management. and those ¢harged with govern8nc•. about their own Identification and assessment of the rfsks of irregularillès. induding any known aciual, suspected or alleged instances of fraud., di5CU85ed matters about non-compllance with laws And regulatlons and how Iraud might occur including assessment of how and Whe the financlal statements may be susceptible to fraud. 15-
SHETLAND ARTS DEVELOPMENT AGENCY INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES 31 MARCH 2026 A$ a result of these procedur88 we consider the mosl slgnificanl laws and regulations that have a direct imp#cl on the financlal stslgm&nts aT¢ FRS 102, Charities SORP IFRS 1021, Charities and Trustee Investment Iswllandl Act 2005 and regulation 8 tyf the Charilitss A¢coullls (Scollandl Regulations 2006 las amended), the charity's governing document and lax legislali()n. We performed audit procedures lo delecl non-compllances whlch may have a material Impact On th$ financlal slal&ments which Included revlewing the financial statements including the Trustees, Report, remaining alèrt to naw or unusual transadons which may not be In accordance with the goveming documents, Inspecting correspondence with l¢¢al tax aulhorllles and evaluating advice received from external advlsors. The most 8ignifieant laws and Mgulations that have Èn indirèct impact on the financial statsmenlB are those In rel81ion lo the Employment Act 2008 and Health and Safety al Work Act 1974. We performed audll procedures to1nquire ol management whether the chartty is In cofflpllance with thes& law and regul81ion$ and Inspèct8d th& diant's risk re91Ster for controls in plac•, as well AS ched(ing payroll documenlalion and Teconciliations. The audit engagement team (denried the rlsk of management override of ¢¢ntrolg and revenue recognition loccurrence and cul-ofl of grÈnt Incomè and complaleness of other income) 83 the area8 where the financial slalemenls were most susceptible to materlal misst¥t¢rllent due lo fraud. Aydll procedures performed in ConnecOn wllh management override Indude<l bul were n¢)1 Ilmiled lo lesllng rnanu81 l¢umal •nlrios 8rtd other adjuslmenls, evaluallng the busSne8s rationale in relation lo significant. unusual transactions And transactions entered into outside Ihe normal eour38 01 business, challenging judgment5 and estimates. In relation to revenue re¢ognill¢n we h8vB lesled grant letters and documentslion In relation to anclllary revenuo. Du• to th• inherent Ilmitalions of an audll, th8ra Is a risk that w• w511 not dètèct all Irr•gul8rltles, Includlny those leading lo a materlal mI$81alemenl In the financial 8lalements or non-compllance wlth regulation. This risk Increases rn0 that compllance wllh a law or regulation is removed from the events and transaction¥ r8flecld In the finan¢lg1 slalernents, as we wlll b• 1&8s Ilk•ly lo becom• aware of In$lanee8 of non- compllancè. Th rlsk of not det8cllng a mat•rt81 mlsst8lemenl rèsultlng from IrÈud 18 higher Ih8n lor one rèsulting from error, as fraud mgy Involv• colluslon, forgery. inlgnlion81 oml88ion$, mlsrgpr&$8nlalion$ or the override of intsrnal conirol. A fvrther de8crfpllon of our resp0nslblll•S lor the audit of thè financial slalemenl8 18 located on the Financial R8POrtlng Councll's website at h Th18 do$¢riptlon fowm¥ part of our gudllorfs report. Usg of our roport Thls rgport 18 m8d& solely lo Ihè charlly's Iruslges. a9 8 body, sn accordance wllh secllon 4411 Ilcl of the Chorilios and Trustee Investment Iscotlandl Act 2005, and regulallon 10 of th$ Charili¢s Ac¢ounls Iscotlandl RegulalSon$ 2006 las amen¢Jedl. Our audit work has been undertakgn so that we mlghl slate lo Ihe ¢h8rlty'8 trusle8s those matters we ats requlred to stste to them in an auditor's report and for no othér purpose. Tts the lulle81 exlenl permitted by law, we do not accept or assume responsibility lo anyone other than the charfty and lis Iruslees as a body, for our audit work, for IhiB report, or for the oplnlons we have lomied. J6 A J B Scholes Ltd Slalulory Auditor Chart9 A¢¢ounlants St Olafs Hall Church Road LeICk Shetland1s1ès ZE1 OFD A J E Sd)ol•s Ltd is eligible to act as an auditor in terms of sectlon 1212 of the Companies A¢t 2TrJ6 16-
SHETLAND ARTS DEVELOPMENT AGENCY STATEMENT OF FINANCIAL ACTIVITIES {Incorporaling Income and Expenditure Account) for the year to 31 MARCH 2026 Nol8 Reslrfcted Capltal Funds Unrèstricted Restricted Funds Funds Total Funds 2025 INCOMEfrnm'. Donatlons Charlt8ble activitles Other trading adivllles Investrnenls 1.$41 361,433 1,070,095 5 1.207,855 8,404 1,541 51,853 1.483.381 1,207.855 8.4Q4 3,111 1,712,680 1,140,144 15.033 Total In¢om& 1,579.233 1.070.095 51,8S3 2,701,181 2.870,9e8 EXPENDITURE on.. RalsSng fund8 Charltsble actlvlll86 284,830 8 1,820,364 1,130,332 284,630 2,950,896 258,849 2,811,327 Total Expendllure 2.105,194 1,130,332 3,235,526 3,087.976 NET INCOMEIIEXPENDITUREI 1525,9611 160,2371 51,853 1534,3451 1197,0081 Transfers fund8 576,260 1576,2801 NET INCOMEIIEXPENDITUREI BEFORE OTHER RECOGNISED GAINS AND LOSSES 50,299 180,2371 {524,4071 {534,3451 1197.0081 OTHER RECOGNISEO GAINSAND LOSSES.. Actuarial gainslllossesl on deflned benefit pensSon schemes 18 11.010.000) Nat movefflenl In funds 50,299 160,2371 1524,407) 1534,3451 11,207,008) Reconciliation ol funds.. Total n6 brought foard 116,205 232.145 7,539,405 7,887,758 g,094,7e4 Total funds carried forward 186,504 171,908 7,014,999 7,353.411 7,887.756 The slaterntrnl of financial aclivlll•s Includes all gains and lossès recognised In th? year. All Income and expenditur¢ derfve from Conllnulng aGtlvilles. 17-
SHETLAND ARTS DEVELOPMENT AGENCY Charfly Registration Nu. SC037082 BALANCE SHEET 31 March 2026 Note 2026 2028 2025 2025 FIXED ASSETS Tangible assets Investments 12 13 7.017,857 fj.y34,(2 TOTAL FIXED ASSETS 7,017,858 6,934,063 CURRENT ASSETS Stock Deblurs Cash al bank and in hand 14 15 27,992 383,523 3C6.606 20,957 1,062,829 231.705 TOTAL CURRENT ASSETS 718,121 1.315,491 LIA81LITIES Creditors.. Amounts lalllng due within one year 16 1382,5681 1360.1C61 NETCURRENT ASSETS 335.553 955,385 TOTAL ASSETS LESS CURRENT LIABILITIES 7.353,411 7,889,448 Crèdltors.. Ameunts 18lllng due after more than one year 17 {1,6921 NET ASSETS EXCLUDING PENSION ASSETILIABILITY 7,353,411 7,887,758 Defined ben$fft pènslon scheme a98eV 18 TOTAL NET ASSETS 7,353,411 7,887,756 THE FUNDS OF THE CHARITY.. Capital restricted fund Restricted fund Unreslrlcted fvnd$'. Unreslrictsd income funds excluding pen8ion reserve Penslon reserve 20 7.014,999 171,908 7,539,406 232.145 166,504 116,205 Tot81 unreslrictad fund$ 186,504 116,205 TOTAL CHARITY FUNDS 7.353.411 7,887,756 These flnancial 8lalemgnts were approved by the board of trustees and authorised fer Iss and are signed on Ihelr behalf by: e on 25 June 2026 J.A4 Trustee Twsle¢ 18-
SHETLAND ARTS DEVELOPMENT AGENCY STATEMENT OF CASH FLOWS For the year ended 31 March 2026 2026 2025 Cash flows us8d In operatlng activitiès: 24 757.1B7 150,2881 Nel cash lused 5nyprovlded by operating activitie5 757,187 150,2861 Cpsh flowfrom Invasting 8ctlvltt. Interest from inve5tmèrils Purchase of property. plant 8TrJ equlpnEnt 8.404 1672,3701 15,003 165.0101 N61 cash used In Invaslng a¢tivSUes 1663,9661 {50,0071 Cash flows from finan¢lng a¢tlvS1108: Repayments of borrowlng Intest pald 117,9091 14111 121,055} 12,6921 Not ca8h provEded byllused Inl flnandng aBUvilles 118,3201 {23,7471 Chang• In cash and cash equlvalont¥ In th• r•pprtlng pèrlod 74,901 1124.042) Cash and ¢88h equivel8nts allh• b8glnn(ng of the r•port6ng perfod 231,705 355,747 Cash and Cash equlvglenls at the end of the raporting period 306,6C6 231,705 An•ly81$ of ¢a$h and cash equlvalents 2028 2025 Co$h In hand Cash at bank indudlng overdrafts 4,345 302,281 4,264 227,441 Total cash 8nd cash equivalents 306,606 231,T05 19-
SHETLAND ARTS DEVELOPMENT AGENCY NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2026 I. PRINCIPAL ACCOUNTING POLICIES Basis of A¢¢ounting The accoun15 are prepared under Ihe historical cost convention (with the exptIOn of pianos which ar8 included al market value and the Weisdal8 Mill which is included al deemed costl and include the result5 of the charity's Operations which are described in the Tfuslees. Report and all of whlch are nlinuing. In preparfng the flnancial statements the charily f10S best pr¥dkE as lard dgwn in the Awounllng and Reportlng by Charilles.. Statement of Recommended Practice, applicable to ¢horllie$ preparfng Ihelr accounts in accordance with the Financial Reporting Standard applicabla in th& UK and Republic of Ireland las amended for accounting periods comrnencing 1 January 20191 Ilhe SORPI, the Financlal Reportlng Standard appllcable in the Unlted 'ngdoM and Republlc of Ireland IFRS 1021, the Charbties and Truste8 Inv¢stmenl IS¢ollandl Act 2005. and the Charilles Accounts (Scollandl RegulaOnS 2006 xs amèndèd) èxcapt as notad b•low. Shetland Arts Development Agency meets the definllion ol a publ1¢ beneflt enllly under FRS 102. The financial statèments have been prepared in compliance with FRS 102. Assets and liabilities are initially recognised al hislowkal $t or tr8n3acllon value unless otheiSe slated in the relevant accounting pollcy nolelsl. The lun¢tional Currency ol Shetland Art5 Development Agenoy Is consld8red to be pounds sl&rtlng becBus• that Is Ihe currency of the primary econornic 8nvironm8nt in whlch the charlly operates. All figures wllhin the flnanclal stslem•nls are roundod lo th8 nearest pound except Ilgur6s In ntsle 18 where rounding 1$ to the neoresl £1,000. Con8011datlon The flnand81 stat•m•nts have b••n prèpac•d fcf Sh•tland Arts D8vglopmènl Agen¢y 9$ an enllty aTrJ In accordance wtth the SORP module 24. Group accounts have not been prepared on the basss that therelg no slalulory requlremenl lo preparg group accounts as the results of Ihe subsldlary undertaklng Is not malerfal lo Ihe group. Crltlc81 Aeeountlng Estlmates and Ar8as of Judgomant The following judg8m8nts and ¢$limale8 h8ve had Ihtr mo31 slBnlficant ellect on the arnount recognhed In the finon¢i ststements. The trust re¢ognl$ed a defined benefit penslon scheme asset on the balan sheet. At 31 March 2026 thè gross asset was nil 12025.. nil). Chartges lo the actuarial asspIlonS could result in material changes within th¢ next fingnriol y¢ar. Fgllgwing ypdaled guidancg on the recognition of pension stheme asBets, Shetland Art¥ have not re¢ognlsed the deflned ben¢fll $¢hem• asset as Ihe Impact ol Ine assets Celllng is to m81nlain the net pensSon asset as £nll. The annual deprerjation tharge for langlble assets 18 5ensltive lo changes in the estlmaled useft economic Ilves and resldual value of the assets. These are $Se$sed and amended when necssary. Golng ConrArn Following the su¢¢e8sful funding bids in the prior year the organisation now has a steady income base for coming y¢ai¥. The trading incgme position has also steadied wblh the exception of cinema. The Lèadèrship T6am have prepared cash fiew projections for the nÈxt 12 mtsnths fmm thè date of signing of thè accounts and these show there wlll be sufflclent cash, based on expected income and gxpendilure levels. The key assumplons underpinnlng these 1gre$t$ a the level ol trading In¢¢me eamed and Ihe reIpl of funding from Shetland Charitable TrL$5t beyond 2026127, togelher with the ability to redu costs. The anli¢ip8led level of trading income is based on industry expectations. The Shetland Charitable Trust funding is based on thè indicative award in IhB oulcorne of a funding bid. 20-
SHETLAND ARTS DEVELOPMENT AGENCY NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2026 I. PRINCIPAL ACCOUNTING POLICIES Icontlnuedl Based on the charity's cash flow forecasts, IhB anldpated oukome of the matter3 descthd and there being no material uncertainties, th8 trusteès have concluded that there is a reasonable expe¢t8tion that the charity has adequate ffinanclal re8ourc8s to operate for thtr foreseeable future. Accordingly. the rinanaal statements ofthè charity have been prepared on a going conrn ba815. Income Incom& Is In¢lud8d in the Statement of F1nanclal Activities when the oharSty has enlltlement lo the funds, any performan condillons attached lo thg gronls have betrn met. It is probable that the incom& will be received and the amount can be measurad reliably aNJ Is not deferrad. Th& following pollcieB ar applied lo particular calegor¢es ol Incpme.. Donations, legacies and simllar incoming r8sourw are Includèd In the year In which they are receivablè. which 1$ when the ¢harlly be¢omÈs èntitled lo the r¢¥our¢e. Capltal Grants Capftal granls are tsken Into account wh•n th become recefvablg. Revenu8 Grants Rèvenue grants aretoken into account when they be¢ome rec•lvable. The value of voluntear help re¢olv8d is not Included In thè a¢unt$ but is descrfbed In the annual Tru8lee¥' Report. Exp8ndltur• All •xpendilura Is gccounled for on an a¢cruals ba819 and ly recognlsed when therè Is a lagal or constructive obligalSon lo pay lor •xp•ndllurè. 11 Is probable that 8trtUÉmant will be wqulred and the amount of the obligatlon can be measured reliably. All cost$ have been dlroclly attrlbuled lo ontr of th8 fun¢llon81 categorles ol r•$OU6$ expended In the Slalemenl of Flnonclal Advltlos. Support Ctssts Support costs aro those functlcns that assisl the woTrrk ol the charity bul do not directly undertake ¢harlloble acllvllles. Support co¥ls Indude staff 8alarleg, overheads and govemanco costs whlch $upport thè ch8rlty's a¢llvili88. All eosls ar• allocated b&tsveen the exp8nditur& categorle8 of the SOFA on a bas1$ designed to rthel the uge of Ihe resourc•. Temilnatlon Bfrnoffts Terminatlon benefils are payable wh•n employment is l&rmlnated by the charlty before the nomial retirement datè, orwhenever an employee accepts voluntary redundancy. Such benefits are recognised when Ihe charity Is demonslr8bly commltted lo termlnatlng the employment wilhoul wllhdrowal or when an offer of v¢luntsry redund8ncy is aw2pted. Operatlng LeasB Agreements Rentals 8pplicable lo operating leases wherÈ substantSally all of th9 b8nef1ts and rfsks of own8rshlp remain with the lessor are accounted fr)r in the siaiemenl of Flnancial A¢tivllies wllhin resources expended on a 8lraighl line basis over the pertgd of Ihe lease, with the exceplign of the rent payable to Shetland Islands Coun¢ll under the sub-lease ol Mare¢l, whl¢h ss netted Off agalnst rent receivable from Shetland Islands Council under the head-lease, as •xplaSned In note 22. 21
SHETLAND ARTS DEVELOPMENT AGENCY NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2026 1. PRINCIPAL ACCOUNTING POLICIES {eontinuèdl Tanglble Flxed Assets No slngle equipment purchase with a cosl below £2,CQO Is to be ¢apltslis8d. Any Item of equlpmenl costing rnore than £2.000 Is Inibally stated at co$t. Paintings arg not deprocialed 88 they are considered to have a useful life ol greater than 50 years and Ihergfore any depCiall0n Is ¢onsid¢red Immaterial. The Iruslees conslder that thi5 departure from Uniied Klngdom Generally Ac¢epted AccountirrfJ Prec¢• (UK GAAPI is necèssary in order to provide a true and fÉlr vlaw. The pion95 were re-valued on 31 Mah 2011. A revlew was und&rtak•n by the Chlef Executive in 2025 by questing th& pSano tuner used by the OrganisatN for a valuation and it was found that the value w98 appropriate. Depreclalkn Is provlded on a11 other tsngible fixed asgets at ralas calcLlated to write off the cost or ValuaOn. less astimated ¥@sidual valu8, of 88ch Ass&t év&nly ovèr its expected useful lile. Asse18 under construcuon ore not depr8ciated. Th& eslSmaled useful Ilf&llmo 018sselg wa8 cal¢Llat•d as.. Heritable Prop•ty- Welsdalo Mill- 50 years HeritAbl• Prop•ty- M8r•el buildlng- 24 yeafs Plant and Equlpmenl- 5 to 10 years Computer Equlpmenl- 3 to S years Residual value represents Ihe es11rn81ed amunl whi¢h would currently be oblait)8d from dlsposal of an 8ys81, 8ft8r daducllng estimated costs of dl$po¥yl, if the were already o18n age and In the condllion fjxped at th8 end of Its us8fv1 Ilfe. Inv•8tm•nts Inve$lment8 In $SId1 undertaklngs aro Inlllally c8pltallsed at ¢081. Stock¥ Stocks are stated al the lower ol cost and nat reallsable value. Nel r¢all8gble value 18 bg8$d on e8limated selling price le85 any furthgr c081s expected lo be Incurred on dlspo$al. Dgbtor$ Trade and olhpr deblof8 that are recelvable w51hln one year are recognlsed al Ihe settlement amount due after any trad¢ di¥counl offered. Pre-payments are valued at the amount prevpaSd net ol any trod• dl$¢ounts. Cash at bank and In hand C8sh at bank and in hand is hald to meet the short-tgmi mMItments as they fall due rather than for any investment purposes. LlabllltSBs Liabilities arise from legal or constructive obligations that eommit thè charity 10 oxpendilure. A liability and related expenditure is recognised when all of the following crtteria are met.. Obllgall¢)n- a psent legal ¢x conslNdive tsbligation exists at the r8porting dat• as a r•sLAi ol a past event., Probablo- il 15 likely than rvJl that a transfer of economlc benefits, often cash, will be requirad in settlement., and Measurement- the amount of the obligation can be mèasured or estimated reliatly. Liabilitie5 that are classified as payable wllhin one year on initial recognition ar& mèasured at the undi5counled amount of ¢3sh or other consideration expecied to be paid. Amounts sre Included in liabilities when 8uthori$ed and committed. 22-
SHETLAND ARTS DEVELOPMENT AGENCY NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2026 1. PRINCIPAL ACCOUNTING POLICIES Icontlnuedl Valuè Added Tax Irracoverable value add•d tax i5wrltten off when the expenditure to which It relates is Incurred. Retirement Bon•flts Eligiblè employees of the Shetland Arts Development Agency are m8mbers of the Local Govgrnmènt Penslon Schem•, a mults'.employer defined benefit st8lulory scheme, administ8red by Shdand Islands Councll in accordance with the Local Governmonl Pènsion Scherne Iswllandl RUl#tIonS 1998 aB amended. The contributions to the scheme aT¢ Chged to the stslem8nl of financial acllvilie5 so as lo Bpread thè c051 of pen5ion¥ over th8 8ervice11ves of employees. Fund$ With the adoption of th• slalemenl of recommended praellce. lunds quIre to b8 c5assified befvleen r•strf¢¢ed lund8 whlch Ara subjèct lo spec¢ terms as to thèir use laid down by the donor, and unrèstricted funds whlGh can be used 81 th¢ dl$crellon ol Ihg Irustaes in the furtherance of the obh8Ctives ol the Irusl. Reslrlcted Capital Funds are grant funding that has been rec&Sved In respect of speciflc ¢apllal oxpènditure. A transfer Is made from Ihls fund lo show the 8morUsalion of Ihls fvndlng over thè useful e¥tlmat8d lifèlimo ol the assets to whlch the lundln9 applled. Thls Iran8f8r Is rnode to Lmreslrtcted reserve8 as thè dèpreciatlon of assets Is recorded hère. Flnanclal Instruments The ¢harfty only has fln8nd81 assets And flnanclal Ilablllll•s of 8 klnd that quallfy a$ baslc fin8ncS81 in8lrum•nl$. Baslc finanelal Instruments ar• InSllally recogniyed at tran¢0N valu& gnd 8ubBequ•nlly moasured at thelf settSern•nl value. 2. LEGAL STATUS OF THE CHARITY Shetland Arts Dgvalopmenl Agen¢y Is an unincorporatèd registered Scott1sh charity ¢on8liluled by Sts trust deed. Th• ¢horlty's addre5$ 8nd details of Its operatlons and principal actlvllies are 0g1olled wllhSn the Tru$lees' Report. 3. OONATIONS Restrlcl•d Unreslrlcted R•strfoled Capltal Funds Funds Funds Tol¥l Fund8 202S Don8llon$ 1.541 1,541 3,111 1,541 1,541 3,111 Donation$ of £3.111 weré Included In unrestricted fund5 in 2025. Th8 charity benefits greatly from tha involvement and enthusiastic support ol Ils many volunteers, delails of which are given in the Trustees. Report. In accordance wllh FRS 102 and the Chatltles SORP IFRS 1021, the econombc ntribuOn of general volunteers is not cOGnised In the finanrlal slatemènls. 23-
SHETLAND ARTS DEVELOPMENT AGENCY NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2026 4. CHARITABLE ACTIVITIES Reslricl¢d Vnrestrfoted Re$trf¢led Capltsl Funds Funds Funds Total Funds 2025 Shetland Charitable Trust CrÉ8livÈ Scotland rev8nu8 funding Crgglive Swtland project funding Lo¢al Authority- project fund5ng Othar public funds I,050,0 1,050,000 1,303.497 358,905 250.000 7,500 37,625 100,000 21,558 358,905 7,500 2.528 12,595 51.853 66,978 361.433 1,070,095 51,853 1,483,361 1,712,680 ¢alive Scotland fundlng of £250,000 and other publi¢ funds of £440 w&re unrestrlcled In 2025. AII other charitable activitie5 income in 2025 were reslricled. OTHER TRADING ACTIVITIES Flestricled Unr•strictad R•slrfcléd Capital Funds Funds Funds Tolal Fundg 2025 Buslnèss sponsorshlpg Box offlcelprogramme Anclllary earned Incomè other income 400 399.524 407,454 600.203 536,035 208,128 196,255 399,524 800.203 208,128 1,207.855 1.207,855 1,140,144 Other Income of £1,140,144 w88 Includ¢d In unre¥lricted fund8 In 2025. 6. INVESTMENT INCOMe All charity's inve3lmenl income arf3es from money heid in interest bearing deposlt account5. 7. RAISING FUNDS Restricted Unrestricted Reslrf¢¢ed Capltal Funds Funds Funds Total Funds 2025 Calerlng sl¢ck pur¢hases Shop and gallery sloGk purchases 270.330 14.SOO 270,330 248,168 14,500 8,481 284,830 284,830 256,649 All ralslng fund$ eXpendu In 2025 was unrgslrfcted. 24-
SHETLAND ARTS DEVELOPMENT AGENCY NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2026 8. CHARITABLE ACTIVITIES Unrestrlcted Restrlcted Capltal Funds Funds Funds Total Funds 2025 Notes Dlrect servlce provision Grant funding Support costs 8a 8b 8¢ 1,105,456 2,200 712,708 201,322 5,400 923.610 1,306,778 1.220,605 7,600 10,000 1,630.318 1,580,722 1,820.364 1,130,332 2,950,696 2,811.327 a. Dlr•ct ServlcB Provlslon Development expendllure Optrratlons expendSlur• Straleglc marketsng 257,587 e47,869 43.202 158,120 300,789 1,005,989 398,832 806,048 15,725 1,105,45e 201,322 1.306.778 1,220.805 b. Grant Fundlng Grants pald lo Indlvlduals 2,200 5.400 7,6C 10,000 The gronls made durln9 the year relate to the Vlsual Arts and Craft Award Schome. Thls scheme16 made pos6lble Ihrough funding from coI1ve Scotland and Sh•tl8nd1818nds Counc51. c. Support Costs Support staff salaries end other staffing co318 Ov8rheadg Governanco costs 16,591 896,117 477,202 433,ooe 13.400 493.793 363,603 1,129,125 1,202,763 13,400 14.356 712,708 923,610 1.636.318 1,580,772 2S-
SHETLAND ARTS DEVELOPMENT AGENCY NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2026 8. CHARITABLE ACTIVITIES IntInued) 2025 Unreslricled Restricted Capital Funds Fund Fund8 Total Funds 2024 Notes Direct service provi3ion Grant funding Support costs 88 8b 8¢ 936.921 2.590 784,563 283.684 7.410 796,159 1.220.605 1,292,157 10,000 4,750 1,580,722 1,433.713 1,724,074 1,087,253 2,811.327 2.730,620 Dlrect Sgrvlc? Provlslon Development •xpendllur• Operat'ons expenditure Slralagic rnarketing 277,188 653,593 6,140 121,e44 152,455 9.S8S 398,832 806,048 1 S,725 409.340 880,641 2,176 936,921 283,684 1,220,605 1,292,157 b. Grant FundSng Gr*nts pald lo Indlvldual8 2,56YJ 7,410 10,000 4,750 The grants m8dg durlng the year relat¢ to Ihe Vl8ual Arts and Craft Award Scheme. Th18 scheme 1$ madè posslble through funding from Crèative Scotland and Sheuand Islands Councll. c. Support Co$ts Support Slaff 8olarfo9 and other stafflng oosts Overheads Governance costs 33.38e 751.197 330.237 451,586 14.35e 383,603 334,247 1.202,783 1,084,445 14,356 1 5,021 784,563 796,159 1,560,722 1,433,713 9, ANALYSIS OF GOVERNANCE COSTS 2026 2025 Audilorrpmuner8110n.' Audit Accounting services 13,400 13,OC Non 8udltorfee.' Accounfjng séNkès 1,38e 13,400 14.356 26-
SHETLAND ARTS DEVELOPMENT AGENCY NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2026 10. ANALYSIS OF STAFF COSTS 2026 2025 Salaries and wa9es Soclal 8e¢urlty costs Pension costs 1.125,166 115,007 273,462 910.651 69,618 162,780 Tolal 1,513,655 1,143,049 One employee recèived emoluments of ovèr £80,000 and Qne employeo recelve emoluments of over £60,000 durlng tha y•ar12025.' one employe8 r1Ve emoluments of over £70,000 durtng the yearl. R8dundancy payments tolJlliNJ £28.394 were pald In the year12025'. £nill. Thè average numbgr of Stsff was: 2028 2025 82 80 Thè charlty operated 8 defined eonlrfbullon penslon s¢ham• durfng th& year 8s well as ihe deflnad benèfll pension scheme refereneèd In note 18. Total arnount5 01 £3,570 12025 £5,874) were re¢ognised In tha Stalem•nt of Flnanolal Actovllies In the year. The expense and Il¥bility Is allocal¢d In linè wllh the activities of Ih05e Staff rnembers contributlons r•lale to. 11. ANALYSIS OF MOVEMENT IN DEFERRED INCOMING RESOURCES Op&ning O•ferred R$le•sed Balance in Year Sn Year Closlng Balonce Advonce 8al•s Shetland UHI Shetland Islands Cpuncll Advanea room hlre 19,763 34,245 119.7631 10.360 6,667 21,832 34.245 10.360 6,667 21,832 6.667 16,6671 26,430 73,104 12e,4301 73.104 27-
SHETLAND ARTS DEVELOPMENT AGENCY NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2026 12. TANGIBLE FIXED ASSETS Heritable Pr¢pety Equlpmenl Planos Palndngs Total Costlvalualion As at 1 April 2025 Additions Disposals 13.202,913 613,520 1,289,611 58,850 {33,4321 42,800 2,862 14.538,186 672.370 133,432 As #131 March 2026 13,816,433 1.315,029 42,800 2.862 15,177,124 DePredatn As 8t 1 April 2025 Charge for year Disposals 8,475.619 547,967 1.128,505 40,608 133,4321 7.6Q4,124 588,575 133,4321 As al 31 March 2028 7,023,586 1.135,661 8,159,267 Mel book amount 31 Mch 2026 e,792,847 179.348 42,800 2,862 7,017,857 31 M¥¢h 2025 e,727,294 181,106 42,800 2.862 6,934,082 The plano$ were re.valued on 31 March 2011. A roview was undertaken by the Chiof Exe¢ullve In 2025 through dlscls51ons wlth the plano tuner that vislts Mareel and there was no slgnlffcant change in valu• found. The Iruslees are not aware ol any material changes sinc8 the last valuation of pianos. The hlslorfc eo81 of the planos was £44,255. Induded withln Hedlable Proparty is £553,04812025 - £nill r•lgting to th• refurblshmènt of th8 Welsdale Mill building. Th8se works were not complete by (he year end and have thefore been Ireated as work progres8 and not depreciated. Included within th8 net book v81u8 of Hgritsble Proporty of £6,792,84712025 - £6,727,29418re assets with reslri¢l¢d lille or pledged 0$ security for Ilabiliti¢8. The M9[1 building, wllh a net bgok value of £5,966.78712025 - £6,505,144) has been granted a$ security over a 99.year grant. the ¢ondltlon$ of which are discussed further in note 22. 13. INVESTMENTS Investment in Subsldiary Cost As al l Aprll 2025 and 31 March 2026 On 25 July 2011, Shell8nd Arts Development Agery purchased 1 ordinary share of £1 in Shetland Arts IP C.l.C. (company number.. SC4040441. repsentIng a 100fjA interest. Shetland Arts IP C.l.C. is a ¢ommunlty interest company which w8S S8t up as a mea)s ol securing intellectual proparty rfghts over films, book$, muslc. etc. pertaining lo Shetland In or<ler to ensure that pny profits gen¢rated thefroM can be retained for the good of Shetland. 28-
SHETLAND ARTS DEVELOPMENT AGENCY NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2026 13. INVESTMENTS (Continued) As at 31 March 2026, Shetland Arts IP C.l.C. had not yet commenced its activities. At 31 March 2026 th8 aggregate resQtve$ of Shetland Arts IP C.l.C. amounted lo a nel defial of £2.55812025- net deficit ¢)f £2,556 8fKI th• loss lor the year lo Ihal dats was nil12025- nil). 14. STOCK 2026 2025 Goods for r8sale 27.992 20,957 16. DEBTORS 2026 2025 Trade debtors Amount due by ¥ubsldiary und$rt8klng Other debtors Pre-payments and accrued In¢omts VAT 41,345 4,574 4.2SO 333.354 32.307 4.234 4.250 1.019,e05 2,433 383,523 1,062,829 16. CREDITORS.. AMOUNTS FALLING DUE WITHIN ONE YEAR 2026 2025 Trade ¢fedi1grs Othér credSior$ Accruals Deferred income B#nk108n$ PAYE & NIC VAT 99,191 94,404 77,271 73,104 1,671 24,338 12,589 119,029 62,828 94,948 28,430 17,888 17,983 382.568 360,106 Deferred income is recognised in Cirwmslances wherg the charity 18 not y•t entitled lo Ihg Income. A recon¢i1181ion of Ihi¥ balance can be Sean Bt note 11. 17. CREDITORS., AMOUNTS FALLING DUE AFTER ONE YEAR 2026 2025 Bank loans If811ir*J du• In less than 5 year8 Bank loans I18lling due after 5 years) 1.e92 1,692 The bank loan is secured on the Weisdalè Mill bullding. 29-
SHETLAND ARTS DEVELOPMENT AGENCY NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2026 18. PENSION SCHEME Sh&Uand Arts Oevelopmonl Agency prov6d$s penslon arrangements to eligible employees through a mulli-employer defined benefit ststutory schomè and thè rèlated costs are assessed in accordance wllh the advlce of Hymans Robertson. Independent Qualified AcluariB¥. The latest formal valuatitsn of the Fund wa5 at 31 March 2023 and this is updated on a lriÈnnial b8S15. A summary of the membershlp data used and the benefits valued at the latest formal valuatlon are sel out in the fom81 valualitsn rèport. Hymans Robertson has reviewed the most recent full actuarial valuation al 31 March 2023 and has updat$d 11 annually al the charity's balance sheet date lo reflect current conditions. As$umptlons as at 2026 2025 Inflalionlpension increase rats Salary Incre8$?$ Discount rate 3.OW• 3.OD•A 6.3Q% 2.75% 2.75% 5.80% Th• discount rale used to place 8 value on the Ilablli1Se$ 1$ detemined by ¢eference lo market yield& on hlgh quality corporate bonds al the reporting dale. The approach adopted by Hyman$ R¢bertson lo setting the dlscounl rale involved conslrucllng a rpOrate bond yleld ¢urve bo¥ed on the ¢onsliluents of the SBoxx AA cerporale bond index. Mortallty Assumptlon8 2026 Years 2025 Years Longevlly al age 65 for curr•nl pen8lonef8 Men Women 21.0 24.6 20.6 24.4 Longevlly al age 65 for futufo pen$loners Men Woman 21.6 25.1 25.3 A$89t¥- prlor to Impact of a8¥gt ¢•lllng (Employor Sh8rel Fund value al 2026 £000 Fund Pern1098 vglue al 2025 2025 £000 Percentage 2026 Equille Bonds Property Cash 09% 6% 25% 4.587 399 1.662 77% 4,420 287 976 57 17Y• Total 100% 100% 5,740 Followlng updat•d guldance on th• recognlllon of pension assets the Trust have not recognlsed the defined benefit pension scheme asset as the Impa¢1 cf the assgt ceiling is lo reduce the net pension asset to £nil. The net penslon asset (prior to impact of tha assèt c•ilingl was £2,525,000 12025 £1,837.0001. 30-
SHETLAND ARTS DEVELOPMENT AGENCY NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2026 18. PENSION SCHEME Icontlnugdl Net Ponslon Llablllty ¥$ at 2026 £000 2025 £000 Fair value ol pmployer assets Present valLse of lunded liabililie9 4.122 13,9561 3,903 13.7361 Nel over funding in fund•d plans 167 Present value ol unfunded liabilltles UnrecognisBd pgst swice 51 11661 {1671 Net as$etl{liabilityl Amount In the balance Bheèt As5919 N•1 Penslon assevlliabllllyl Amounts rocognlsed In tho SOFA 2026 £000 2025 £wo Current service co81 Past 8ervlce co¥t Net Interest ¢08t Employer contrlbullons 11241 {511 109 274 11351 50 161 R•mea$urements'. Changes In dernographlc assumpllons Changes In finan¢lal 8ssumpllons Other exporlènce Return on assets excludSro amounts includ•d In nel inlertsl Impaot of asset rélllng 123) 197 1441 351 16891 85S 52 11621 11,8371 11,0101 Aetual retum t)n plan assets 2026 £ ocxj 2025 £000 Return on as$e¢s exc5udin9 8mounts induded In net interest Interest incoma on plan assets I7uded in nèt interest 351 339 11621 271 Retum on plan assets 690 109 31
SHETLAND ARTS DEVELOPMENT AGENCY NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2026 18. PENSION SCHEME (Continued) Reconciliation of défin8d bènèfjt obligation 2026 £000 2025 £0 Openlng d•fln•d benefit obllgatlon Currgnt servlce cost Past servlce cost lincluding curtailments) Interest cost Member cDntribulSons Actuarial lossesllgainsl Unfunded beneflls paid Benefits pald 3,903 124 si 230 57 11301 1121 11011 4,526 136 221 44 19141 1121 {981 Closing defined benell Dbligalion 4,122 3,903 Reconclllatlon of falr valuè of 8mployèr assèts Op•nlng falr value of •mployor a$sets Inlèr8St Incomvj Contributions by membèrs ContrSbulion8 by the employer Conlribullons in r$spe¢l of unfunded beneflls Return on ass•ls 8x¢ludlng arnounl$ in¢luded In nel Inter881 Other exp8rienc• Unlunded ben8flts pald Bèneflts pald Impael of 89881 celllng 3,903 339 57 2e2 12 351 5.636 271 149 12 11621 1121 1981 11,8371 16891 Closlng folr valu& of èmployer assets 4.122 3.903 Shetland Arts Delopment Agency &8limales that omploygrfs conlribullon8 for the ygar 10 31 March 2027 wlll bo approxlmately £193,000. Hymans RobertBon confirm the figure8 pre8enled above are prepared only for the purposes ol Flnan0i81 Reporting Standard 102 and have no validity in other circumstances. In particular, they are nol relev8nt for Calculaliong undertaken for funding purpoges. for ac¢ounlin9 under th& Intemalicn81 Ac¢ounting Stsndard IAS 19. lor bulk transfers or for other 8lalulory purposes undor LGPS Regulallons. 19. RELATED PARTY TRANSACTIONS No trustee recelved 8 salary or rernunerallon durfng the ye8r12025 - £nlll. Travelllng expenses lotallln9 £625 12025.. £1.4311 w•r• clalm•d by on• trust•• in thè y&ac. TnJsl88s were paid £nil12025 £8,961) during Ihe year for performances and commis51oned work. As at 31 Mar¢h 2028, a bBlance of £nll12025 enlll was owed lo trustees. Durfng the year, Shetland Arts Development Agency paid expenses of £26712025 - £2401 on behall of Its subsidlary, Shetland Arts IP C.l.C. As al 31 March 2028 a baSance of £3,80912025 - £3,542) was owed lo Shetland Arts Development Agen¢y. No Interest Is belng 8ccNed Ihls loan. 11 wlll be repaid when income Is generated in th• Community Int•rest Company. DurlTrJ the year. Shetland Arts Development Agency pald expenses of £19012025 - £1441 on behalf ol Its subsidiary, Shetland Weathers LLP. As al 31 March 2026 a balance of £902 12025 - £7121 w8S owed to Shetland Arts Development Agency. 32-
SHETLAND ARTS DEVELOPMENT AGENCY NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2026 ThÈ trustees consider thot the charty's Iwstees and Leadershlp Team comprise the key managemènt personnel of the ¥harity in charge ol dir8ction and controlling. wnning and opèrating the charity on a day-to4ay basls. At the start uf the financial yearthè L•adership Team comprised the Chlef Executbve, Commissioning Lead, Eduealion and Outreach Lead, Sales and Comrnunl¢otSons Lead, Customer Experience Lead, PrrAluctson 8nd Facilities Lead and Support Lead. Following a restructure frorn 1" July 2026 il comprised the Chlef Executive, Dirèctor of Operations and Director of Cre811vlty and Impact. The total employee bertèfits ofthe key management personnel wer& £368.32012025 - £300,951). 20. ANALYSIS OF MOVEMENTS BETWEEN FUNDS Fund$ as al Incomlng Resources Other galns 1 April 25 Resources Expendèd ond losses Funds as 81 Transfers 31 March 28 Unreslrlcted funds.. General Designatod Pen8i¢n r•serve 68,491 1.579,233 12,105.1941 47.714 551,111 25,149 93,641 72,863 Totsl unrestrlcted funds 116,205 1.579.233 12,105,194) 576.260 166,504 R8strl¢led lund8'. .Sh•tland Fllm Club Sh8tland Charllable Tru81 Shetland Choriiable Trust- Caplt81 Grant Schem• Trod Big Band Culturè Collect8 Corra Foundallon Visual Arts and Craft Makers Awards Rewvery Fund for Cultural Oryanlsatlons Summer ol Play Rgwnemberlng TogelPwr D16covery Film Club Bonho9a Gr8duat8 1,705 1,705 1,050,000 11,050.0001 40,070 2,435 25,710 4,146 119,881) 12,4351 125,7101 20,189 4,146 7,500 15,4001 2,100 142,472 2.972 11,517 1,116 142,472 12,9721 111,5171 15671 111,8501 745 11,850 1,296 Total re8trlGted lund8 232.145 1,070,095 11,130,332) 171.908 Resliicled cap1181 lund 7,539,406 51,853 1576,2601 7,014,999 T¢Jtal Funds 7,687,756 2,701.181 13,235,$261 7,353,411 With the adopllon ot the slaltrmènt of recommended prodce, funds rèqulre to be classified been reslricled funds whlch ale $ublect lo speerfic terms as lo their use laid down by the donor. and unre5tri¢ted fund5 wNch Can be used al tho discretion of the INslees In the furtherance Df the obleclive$ f tho trust. Restrlcted C8plt81 Funds are grant funding that has been recelved in raspect of speclli¢ capital expenditure. A transfer is madè from thls fund lo show the amortisatitsn of thls fundin9 Over the useful esimaled lifellme ol the assets to which the fundlng applied. Thls transfer 15 rnade to unre51ricted reserves as the depreciation of assets is record8d here. 33-
SHETLAND ARTS DEVELOPMENT AGENCY NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2026 20. ANALYSIS OF MOVEMENTS BETWEEN FUNDS Icontinuedl Th8 designated fund is held for us& In bulldlng rep8lrs 89 Perthe rtrssrves policy of the organi8ation. The Shetland Film Club restricted fund was Cated from a donation fr¢m th• Sh13nd Fllm Club on its wind up. The funds are restricted for use on the rural touring of film. No mral film touring was undertaken in the ye8r meaning there was no movement on thSs fund. Discussions have been held wilh the individuals wh¢ were th¢ flnal club members and the funds rnay be used to support educational s¢roening$ for school ¢hildren in th& future if rural touring cannot happen. The Shetland Charitable Trust fund dlrectly rolales lo the annual core fundlng rec•ived frem Shetland Charitable Trust and was fully utilised in the year. The Shell8nd Charftable Tru$l Capil81 Grant Scheme fund relates lo funding agreed wlth the Shetlatvj Charitable Tw$t for malnlenanG¢ work5 Ihal are yel lo take place. Some of the works were undertaken In Iho year wllh ihe remalnder belng ¢ornpleled 2026127. The Trad Big Band reslricled fund relales dlrectly to the Trad Blg Band prolecl. The r&malnino fund$ were used lo support the Trad Youth North proje¢l in the year. This reserve is now Closed. Tha Culturè Coll•cllve lun¢J wlates ID th8 Cultura Collecllvt Project. ThSs projecl is now complete and all funds ulilised. The Corra Foundallon reserve was created du& to a grant balng ree•lv•d Irom th1$ foundÈllon for COVID wellbèing projects. The full grant has yel lo be sp8nt and the Corra Foundallon has not a$k0d f¢r Ihl$ to bè rèpald. Th• fund wlll b¥ v¥od for wellbeing prolects undertaken In the 2026127 finan¢lg1 year. The Visual Arts and Craft Makern.Aw9rds re8lrtct•d fund eontlnu•s lo ba used lo make aw8rd8 to local Craft makers and is an ongoing project. The R¢¢overy Fund for Cultural 0rganls8llon8 was created by fundlng from Creallve Scotland lo support tha organi5atlon In Sts recov•ry Irom COVID-19. Part ol the funding was availablg to increase organisational reserves which 15 why there has been no rnovemenl. In the fulyro the lund may bo used In Ilne with the other eligible cost areas for the grant. The Summer of Play reserv• was ¢realed through lundlng recelved lo encourage children to take part In Bctivlty In summer 2021. Th• project èxpen98s werè not 9$ 9wal as anlicipal?d and np reclaim has been sought from the funder. The remalnlng funds were used agaln$l youlh acllvlly In the year. The Remèmberlng Together reseNè was created lo support the delivery of the COVID memorfal for Shellgniy. Thè proj8cI was completed in year and all funds ulilised. The Dl$wvery Film Club lund was Qrealed wllh lundln9 re]Ved lo start a Dlscovery Film Club in Shetland. The Film Club project only began in Q4 25128 and is ongoSng. The Bonhoga Graduate lund was created through grant fvnding received for 8 graduat8 to dav•lop thè future buslness plan f¢r Bonho9a. The funding and emrAoyment will continue to mid 202e. As per the SerVeS pollcy of the or9ani501ion, In ptior year8, 50% of the unrestricted operallng 8urplus after the deficil on unrestrlcted funds was cleared has be8n dèslgnated to a nÉw A$sÈls RèplaeÈmenl and Repair Reserve. These funds wi51 be used in conjunctlon with the SCT C8pil81 Grant Fun(Jing lo undertake iepairB to SADA venues. A desigrbauon of£2S,149 was made In year.
SHETLAND ARTS DEVELOPMENT AGENCY NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2026 20. ANALYSIS OF MOVEMENTS BETWEEN FUNDS Icontinuedl Fund8 as at Incoming ReSoue$ Other gains l April 24 Rèsources Expended and1033es Funds as al Transfers 31 March 25 Unrestricted fvnds.. General Design819d Penslon reserve 68,491 1,408,728 11,980.7231 47,714 1.010,000 571,995 68,491 47,714 11.010.000) Total unre8lriet•d funds 1,126.205 1,408,728 11.980,7231 11,010,000) 571,995 116,205 Re51ri¢ted funds-. Shellond Film Club Sh•tland Charitabl8 Trust Shetland charable Trust- Capital Grant Schem• Trad 819 Barid Culture Collecllv¢ Corra Foundallon Dlspecla E81 Thulg Xchange Visual Arts and Craft Makers Awards Recovèry Fund lor Cultural OrganlsatSon8 Summgr ol Play Remornbering Tog•th&r Dlscovery Fllm Club Rebrandlng Art ofAetlon 1,705 1,705 B95.947 1895,g47} 43.400 2.435 27,630 4,146 500 5,288 48.570 {51,9001 40.070 2.435 25,710 4,146 35,000 136,9201 15001 15,2881 4,785 2,62S 17,4101 142,472 2,972 90,720 142,472 2,972 11,517 1,118 179.2031 1.118 9,585 5CKI 19,5851 Isooi Total restrlci¢il funds 328,053 993,345 11.087,2531 232,145 R&slrS¢led capital fund 7,842,506 468.895 1571,9951 7,539,4C6 Total Funds 9.094,764 2,870,988 13,Cf7,9761 11.010,0001 7,887,756 35-
SHETLAND ARTS DEVELOPMENT AGENCY NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2026 21. ANALYSIS OF NET ASSETS BETWEEN FUNDS Unrestricted Pension Funds Restricted Capltal Funds Unreslricled Funds Restricted Funds Tolal Funds 2026 Flxed Assets Current Assets Current Liabilities Long-Term Liabilities Penslon Asset 249,287 299,805 1382.5681 6,768,591 7,017,658 246.408 718,121 1382,5681 171.908 Total Net Assets 166,504 171,908 7,014,999 7,353.411 Fixed Assets Current A589ts Current Liabilities Long.Temi Liabilitles Pension Asset 66,680 411,323 1360,1061 11,6921 6.887.383 6.934.C63 672,023 1.315.491 1360,1081 11,6921 232,145 Tolal Not Assets 116,205 232,145 7,539,4Q6 7.887,758 Included within reslrlcled capital funds are arnount5 01 £507,98e12025 - £553,819) relatlng lo Ih¢ lease pr8mlum recelved from Shetland Islands Coun¢ll during the year ended 31 March 2014. 22. OPERATING LEASES At 31 March 2026 the d)arity had letal lubjre Gornmilments under non-Ggncellabl• op8rattng leases 09 Sel out below.. 202e Land & Bulldlngs 2025 L8nd & Bullding# Other Itèms Other Items Operaliro leases whl¢h èxplr*'. Within 1 y&ar Wilhln 2 to 5 yoar$ 9,816 39,264 10.232 7.e74 49,080 17.906 2026 P18nl & Machlnery 2025 Plant & MaGhln¢ry Other Items Other Items Operating lease payment made in the year 10,128 10,938 10,128 10,938 3e-
SHETLAND ARTS DEVELOPMENT AGENCY NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2026 22. OPERATING LEASES Icontlnuedl On 27 May 2013, a lease was granted by Sheuand Arts Development Agency lo Shetland Islands Council ISICI over the subject$ at Mareel. The Lease term 1$ 99 years with the lertant baing the SIC. A premium of £1,100,000 (plus VATI w88 P8y8bl$ with an annual rent being £132,547 Ithls will be reviewed every five yearsl. The SIC has the option lo bLry ma¢1 f¢r £1 after 1 May 2037 when the grant conditions for Creative Scotland expire. This option is secur8d. Further to this, a sub.lease has been granted by the SIC back to Shetland Arts Development Agency for 24 yeats lo 1 May 2037, with rent being the same as the h98d lease. There is an option lo terminate this sub-le88e on slx months, notice by eilhgr party. 23. FINANCIAL INSTRUMENTS The carrylng amount for each category of flnanclal Instrument. measured at amortid co81, Is a$ lollow8: 2028 2025 Flnanclal Ilabllltlès Loan payable falling du6 within 1 yèar Loan payable falling due between 2- 5 year¥ 1,671 17,888 1,692 1.671 19,580 Tho loan fin8nclng Is In the lorrn of one unseoured loan. The unsecured loan has a fixed Interest rale ol 2.5% and Ss due to finish in May 2026. The total interest pald durlng the year was £41112025- £2,e92I. 24. RECONCILIATION OF NET INCOMEIIEXPENDITUREI TO NET CASH FLOW FROM OPERATING ACTIVITIES 2026 2025 Nel incornellexpendilurel for the reporting perlod 188 per tho stsl¥menl olfinanclal activltiesl Adluslrn$nls lor.. Intai•st rOld Inleiesl paid DgprecialioTrn charges Loss ¢n $?le of flxed a$8ets Ilner•as•yd•cr•8s• in stocks Ilncreas6ydecrease In debtors Increaselldecreasel In credltors 1534,3451 1197,008} 18,4041 411 588,575 115,003} 2,692 S87,417 17,0351 679.308 36,679 11,805} 1472,030} 45,449 Ntrl cash provided by Iu8ed inl opgrgling 8¢tivitig$ 757,187 {50,2881 Cash ows Non cash movements 2025 2026 Cash and cash equivalènts Bank borrowlngs due wlthln on• y•Ar Bank borrowlngs due after one year 231,705 117,8881 {1,6921 74,901 17,909 306.606 11.6921 11,6711 1.692 212,125 92,810 304,935 37-
SHETLAND ARTS DEVELOPMENT AGENCY NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2026 25. CAPITAL COMMITMENTS Works continued during the y8Ar on th8 c8fiJrbishment of BoTihog8 Gallery. A lolal of £79,227 is Still to be pald on thSs project. A contract was also underway for the construclion of 8 Changing Ploces Toilèt In More&l. Th$ remaining balance on this conlracl was £46,859. 38-
SHETLAND ARTS DEVELOPMENT AGENCY NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2026 The f¢llowlng pages do not ferm part ol th• $latutory flnan¢ial $la1grnent8 whl¢h are part ol the Independent audltor's report on pages 14-16. 39-
SHETLAND ARTS DEVELOPMENT AGENCY NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2026 2026 2025 INCOME Donations and business sponsorships Revenue grants received INte$t recelved 1.541 1,431.528 8.404 3,511 1.243,784 15,033 Box offl¢elprogramm• Box effic• income Hir8 of rooms Membership sales 275,613 115.420 8.491 297,382 102,469 7,603 Total 399.524 407,454 Anclllary Earn•d In¢om• Food and beverage Foyer Retail Box Office commlssion ExhlbSllon sales comml8slon Seréèrt advartlslng 435.062 87.836 26.308 43,723 370,267 90.965 24.362 37,198 7,274 13,223 Total eoo,203 536,035 other E•rntrd Income Education training Incoma Mlscellaneous 100,070 108,058 125,578 70,677 Total 208,128 198,255 TOTAL INCOME FOR YEAR 2,849.328 2N02.072 LESS.. Caleriny purtha8e8 Shop and 9811¢ry purchases 270,330 14,500 248.168 8,481 284,830 256,649 Davelopment &xpendbtur&: Progr8mme Travél and subsist•n S8laries and NIC 94,203 15.383 191,203 218.489 13.155 167,188 300,789 398,632 Surplus ¢arrlfrd foNard to next page 2.063,709 1.746,59 40-
SHETLAND ARTS DEVELOPMENT AGENCY NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2026 Surplus brought forward from pravious page 2.063.709 1.746,691 Operations ?xpendlture'. Programme Travel and subsistenc• Marketln9 S8lari8s and NIC 123,840 9,577 27,322 845,250 135,921 8,871 15,632 645,624 1,005,989 806,048 Straleglc marketing Gr8nls paid to Indlviduo1$ 15,725 10,000 7,600 Support 81aff $alari88 Other slafflng ¢osls 477,202 16,591 330.237 33.366 493,793 363,603 Print, P05tsgè and $101Sonery Small equlpm¢nl purchases gnd hlr& ICT Operallng lease- equlpm8nt Electricity Tèlephone and broadband Cleaning Legal and profeOnal fee8 Bank charge6 PubliGalons and 8ubBcrlplSon$ Llcence8 Rates Rent Repalrs and mainlanance G•n8ral overheads Insurancé Websit¢ costs Trustee$ expens88 Motor expenses Training and megling calerln9 cos16 Qepreciatlon Loan Interest Bad Debts wrltten off LossllGainl on dlspo$41 of flxed ¥$s•ts 2.757 12,005 18,356 14,171 135,062 9,036 57,185 31,124 24,071 8,219 55,578 27,054 198 69.290 968 73,598 2,758 22,270 15,695 22,279 1e4,213 8,516 58,932 77,425 25,219 7.926 49.221 23,437 72 84,335 267 87,136 669 636 493 588,575 411 557 1.243 587,417 2,892 405 1.129.125 1.202.763 AmorUs&tion Govemance costs 1576,2601 13,400 1571,9951 14,356 IDEFICITYSURPLUS FOR THE YEAR 19,9381 193,9091 41