2024-03-31-accounts

Charity registration number SC044208 (Scotland)

PROVOST JAMES RAE TRUST

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

PROVOST JAMES RAE TRUST

CONTENTS

	Page
Trustees' report	1 - 4
Independent examiner's report	5
Statement of financial activities	6
Balance sheet	7
Notes to the financial statements	8 - 14

PROVOST JAMES RAE TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2024

The trustees present their annual report and financial statements for the year ended 31 March 2024.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the trust's governing document, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)".

Objectives and activities

To provide financial support for the advancement of the arts, heritage and culture or for the advancement of education to include financially supporting young artists, emerging artists of any age and struggling artists working in Scotland as well as facilitating exhibitions of work of artists working in Scotland. During the year, the Trustees have placed a greater emphasis on supporting late career artists. This reflects a recognition that artists at this stage can face increasing financial and professional pressures, and that targeted support can have a meaningful impact on the continuation and visibility of their practice.

Achievements and performance

During the year the Trust continued to support artist development, research and exhibition activity throughout the year.

The Trust supported residencies at the Ballinglen Arts Foundation in County Mayo, Ireland. These fellowships provided artists with dedicated time and space to focus on new work, research and professional development. In August 2023, Marion McPhee participated in a workshop led by Ron Pokrasso at the Ballinglen Arts Foundation. The Trust supported travel and accommodation costs, enabling participation in this significant professional development opportunity.

The Trust also supported the exhibition of work by Eilín Jakobsdóttir at HAUS. KUNST. MITTE., Berlin, which ran from October 2023 to February 2024. Financial assistance was provided towards the commissioning of an essay for the exhibition catalogue and associated framing costs, contributing to the successful presentation and documentation of the exhibition.

In addition, the Trust supported the first major exhibition of Dame Barbara Rae’s artwork held within the Trust, presented at Callendar House, Falkirk, from May to September 2023. This well attended exhibition formed part of a wider programme by Falkirk Council celebrating Scottish artists with a connection to the area and represented a significant milestone in the Trust’s exhibition activity.

Financial review

There are net total assets of £855,853 (2023: £896,651) and net current assets of £625,884 (2023: £664,682). The Trust received income of £212 (2023: £240,263). No donations were received during the financial period (2023: £240,035 including gift aid). No future commitments were agreed during this financial statement.

Reserves policy

It is the policy of the Trustees to use the funds of the Trust to both make grants and donations and to support the charitable activities of the Trust. The Trustees will consider the need to retain reserve balance at the close of each financial year for its future activities having regard to their duties as charitable trustees. The Trustees intend that any surplus cash following this assessment will be distributed in a following year,

The funds of the Trust are wholly unrestricted and are represented by mainly the works of art but also funds held in a bank account. the Trustees have the power to draw upon the fund in furtherance of the Trust's objectives whilst retaining sufficient funds to meet any commitments they may undertake.

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PROVOST JAMES RAE TRUST

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

Risk management

The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the Trust and are satisfied that systems are in place to mitigate our exposure to the major risks.

As the Trust relies on the donations from the Settlor in order to make its donations and to meet running costs, the principal risk faced by the Trust is whether donations are made to the Trust.

However, the Trustees believe that sufficient funds from disposal of investments can be realised to meet running costs and any award of donations will be made only where funds permit.

Plans for future periods

Continue giving out grants and awards, continuing exhibition planning, furthering partnerships with galleries and other activities in line with the objectives of the Trust.

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PROVOST JAMES RAE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Structure, governance and management

Founding Document	Deed of Trust dated 17thJune 2013 and registered in the Books of
	the Lords of Council and Session on 18thJune 2013.
Appointment of New Trustees	Reserved to the Settlor provided they retain sufficient capacity to
	do so, whom failing, the Trustees in office.
Decision making	All Trustees are actively involved in the decision making process.
	Requests for funding are reviewed by the Trustees.
Employees	The Trust has no employees (2023: none). The Trustees have
	engaged Turcan Connell to undertake the administration of the
	Trust, remuneration for which is recorded in the financial
	statements.
Related Parties	During the period the Trust received no donations (2023: £240,035
	including gift aid) from Trustees paid expenses of £nil (2023: £nil)
	on behalf of the charity, all of which was outstanding at the year
	end.
Management	All Trustees are active in the management of the Trust.
Scottish Charity Number	SC044208
Address	Lindsays
	Caledonian Exchange
	19a Canning Street
	Edinburgh
	EH3 8HE
Solicitors	Lindsays
	Caledonian Exchange
	19a Canning Street
	Edinburgh
	EH3 8HE
Independent Examiners	Thomson Cooper
	3 Castle Court
	Carnegie Campus
	Dunfermline
	Fife
	KY11 8PB
Trustees	Mr D Connell
	Ms K Watt
	Ms B Rae
	Mr F Hoskins

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PROVOST JAMES RAE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Statement of trustees' responsibilities

The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in Scotland requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the trust and of the incoming resources and application of resources of the trust for that year.

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

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the trust and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

..............................

Ms K Watt Karyn Watt

16-07-26 Date: .............................................

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PROVOST JAMES RAE TRUST

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF PROVOST JAMES RAE TRUST

I report on the financial statements of the trust for the year ended 31 March 2024, which are set out on pages 6 to 14.

Respective responsibilities of trustees and examiner

The trust's trustees are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The trust trustees consider that the audit requirement of Regulation 10(1)(a)-(c) of the Charities Accounts (Scotland) Regulations 2006 does not apply.

It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 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 financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the financial statements.

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:

2. to keep accounting records in accordance with Section 44(1)(a) of the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 4 of the Charities Accounts (Scotland) Regulations 2006, and

3. to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the Charities Accounts (Scotland) Regulations 2006

have not been met, or

1. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.

Jacqueline Whyte FCCA Thomson Cooper 3 Castle Court Carnegie Campus Dunfermline KY11 8PB 17-07-26 Date: ............................

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PROVOST JAMES RAE TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2024

		Unrestricted	Unrestricted
		funds	funds
		2024	2023
	Notes	£	£
Income and endowments from:
Donations and legacies	2	-	240,035
Investments	3	2	90
Other income	4	210	138
Total income		212	240,263
Expenditure on:
Charitable activities	5	41,010	113,018
Total expenditure		41,010	113,018
Net income/(expenditure)		(40,798)	127,245
Other recognised gains and losses:
Other gains on sale of property	11	-	9,101
Net movement in funds	8	(40,798)	136,346
Reconciliation of funds:
Fund balances at 1 April 2023		896,651	760,305
Fund balances at 31 March 2024		855,853	896,651

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

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PROVOST JAMES RAE TRUST

BALANCE SHEET

AS AT 31 MARCH 2024

Notes Fixed assets Tangible assets 12 Current assets Debtors 13 Investments 14 Cash at bank and in hand Creditors: amounts falling due within one year 15 Net current assets Total assets less current liabilities The funds of the trust Unrestricted funds 16	2024 £ 21,373 325,000 288,382 634,755 (8,871)	£ 229,969 625,884 855,853 855,853 855,853	2023 £ 19,229 305,000 345,565 669,794 (5,112)	£ 231,969 664,682
				896,651
				896,651
				896,651

The financial statements were approved by the trustees on ......................... 16-07-26	The financial statements were approved by the trustees on ......................... 16-07-26
..............................	..............................
Ms K Watt	Mr F Hoskins
Karyn Watt	Frank Hoskins

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PROVOST JAMES RAE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

1 Accounting policies

Charity information

Provost James Rae Trust is a trust registered at 28 Anderson Place, Edinburgh, EH6 5FR.

1.1 Basis of preparation

The financial statements have been prepared in accordance with the trust's governing document, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)". The trust is a Public Benefit Entity as defined by FRS 102.

The trust has taken advantage of the provisions in the SORP for charities not to prepare a statement of cash flows.

The financial statements are prepared in sterling, which is the functional currency of the trust. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the trust has adequate resources to continue in operational existence for a period of at least 12 months from the date of approval of these financial statements. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

1.4 Income

Investment income is included in the financial statements in the year which the Trust becomes entitled to it, it can be reliably determined and there is a probability of receipt.

Donations are included in the financial statements together with associated gift aid, where applicable, when the Trustees have been advised of the donation with notification of both amount and intended settlement date.

1.5 Expenditure

Expenditure is included in the account on an accruals basis and recognised in full as soon as a constructive obligation exists, the sums payable can be reliably measured and there is probability of payment.

Governance and Support Costs:

Fees charged by Turcan Connell for legal and accounting services are included in the financial statements as follows:

Governance (Accountancy Costs) - 25% Support (Legal and Administrative Costs) - 75%

These are recorded in support and governance in the Statement of Financial Activities.

Independent Examination Fees are recorded in support and governance in the Statement of Financial Activities as appropriate.

All other governance and support costs are recorded in the Statement of Financial Activities as appropriate.

As the charity does not provide services directly but by the way of grants to other organisations, governance and support costs are not allocated against individual grants or donations.

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PROVOST JAMES RAE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

1 Accounting policies

(Continued)

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Assets costing in excess of £500 are capitalised.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings

10% straight line

Freehold land and buildings are not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Cash and cash equivalents

Cash and cash equivalents include cash in hand.

1.8 Financial instruments

The trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the trust's balance sheet when the trust becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

1.9 Current Asset Investments

The Trust holds a collection of artwork which is currently held with the intention to sell items and use the proceeds to support charitable activities. The collection is reported in the balance sheet at fair value, based on the Trustees' estimated market value.

Expenditure which is required to preserve or prevent deterioration of individual collection items is recognised in the Statement of Financial Activities when it is incurred. All of the artwork is presently being held in a storage unit on behalf of the Trustees.

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PROVOST JAMES RAE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

2	Income from donations and legacies
		Unrestricted	Unrestricted
		funds	funds
		2024	2023
		£	£
	Donations and gifts	-	240,035
3	Income from investments
		Unrestricted	Unrestricted
		funds	funds
		2024	2023
		£	£
	Interest receivable	2	90
4	Other income
		Unrestricted	Unrestricted
		funds	funds
		2024	2023
		£	£
	Reimbursement of unused factor float	210	138

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PROVOST JAMES RAE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

5 Expenditure on charitable activities

		Unrestricted	Unrestricted
		Funds	Funds
		2024	2023
		£	£
	Direct costs
	Cataloguing works of art	18,974	3,600
	Property expenditure	2,188	2,639
	Other costs	412	82,082
		21,574	88,321
	Grant funding of activities (see note 6)	1,441	8,908
	Share of support and governance costs (see note 7)
	Support	11,284	13,689
	Governance	6,711	2,100
		41,010	113,018
	Analysis by fund
	Unrestricted funds	41,010	113,018
6	Grants payable
		Unrestricted	Unrestricted
		Funds	Funds
		2024	2023
		£	£
	Grants to individuals	1,441	8,908
7	Support costs allocated to activities
		Unrestricted	Total
		Funds
		2024	2023
		£	£
	Depreciation	2,000	2,000
	Administration	11,384	11,689
	Governance	4,611	2,100
		17,995	15,789

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PROVOST JAMES RAE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

7 Support costs allocated to activities Governance costs comprise: Accountancy 8 Net movement in funds The net movement in funds is stated after charging/(crediting): Depreciation of owned tangible fixed assets	(Continued) 2024 2023 £ £ 4,611 2,100 4,611 2,100 2024 2023 £ £ 2,000 2,000	(Continued) 2024 2023 £ £ 4,611 2,100 4,611 2,100 2024 2023 £ £ 2,000 2,000
		2,100
		2023 £ 2,000

9 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the trust during the year.

10 Taxation

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

11 Other gains and losses

	Unrestricted	Unrestricted
	funds	funds
	2024	2023
Gains/(losses) upon:	£	£
Gain on sale of property	-	(9,101)

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PROVOST JAMES RAE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

12 Tangible fixed assets

Freehold land and buildings Fixtures and fittings £ £ Cost At 1 April 2023 225,750 20,000 At 31 March 2024 225,750 20,000 Depreciation and impairment At 1 April 2023 - 13,781 Depreciation charged in the year - 2,000 At 31 March 2024 - 15,781 Carrying amount At 31 March 2024 225,750 4,219 At 31 March 2023 225,750 6,219	Total £ 245,750
	245,750
	13,781 2,000
	15,781
	229,969
	231,969

Freehold land and buildings comprises the gallery and office space at Anderson Place, Edinburgh.

13 Debtors Amounts falling due within one year: Other debtors Prepayments and accrued income 14 Current asset investments Fair Value At 31 March 2023 Add: Donated artwork Add: Purchases Less: Sale At 31 March 2024 Investments comprise of works of art that were valued by the Trustees as at 31 March Sale proceeds Book value of disposal Gain on Sale	2024 £ 19,228 2,145 21,373 2024 £ 305,000 - 20,000 - 325,000 2024. - - -	2023 £ 19,229 -
		19,229
		2023 £ 305,000 5,000 - (5,000)
		305,000
		6,000 (5,000)
		1,000

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PROVOST JAMES RAE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

15 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Other creditors Accruals and deferred income	2024 £ - 8,871 8,871	2023 £ 852 4,260
		5,112

16 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

	At 1 April	Incoming	Resources	Gains and	At 31 March
	2023	resources	expended	losses	2024
	£	£	£	£	£
General funds	896,651	212	(41,010)	-	855,853
Previous year:	At 1 April	Incoming	Resources	Gains and	At 31 March
	2022	resources	expended	losses	2023
	£	£	£	£	£
General funds	760,305	240,263	(113,018)	9,101	896,651

17 Related party transactions

Transactions with related parties

The Trust has no employees.

During the period, the Trust received no donations (2023: £240,065 including gift aid) from the Trustees.

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