HISTORIC ENVIRONMENT SCOTLAND ANNUAL REPORT AND FINANCIAL STATEMENTS AITHISG BHLIADHNAIL 2015-16 The financial statements Trustee report gives a summary The Key Performance Indicators included in this report are for of the income and expenditure measure the delivery of the annual Historic Environment Scotland of both Historic Scotland and business plan, which set out the (HES). As HES commenced RCAHMS for the period April 1, combined priorities for Historic operating on October 1, 2015 2015 to September 30, 2015, Scotland, RCAHMS, and the HES. when it took over the activities these figures when added of the two predecessor bodies, to HES’ results represent a Historic Scotland and the Royal full year of activities.* Commission on the Ancient and Historical Monuments of Scotland (RCAHMS), the financial statements represent the six months from that date. The Financial review within the Contents Clàr-innse Chair’s Report 4 Trustees' Report 10 Key Performance Indicators 20 Remuneration and Staff Report 26 Governance Statement 32 Independent Auditor’s report to the members of Historic Environment Scotland, the Auditor General for Scotland and the Scottish Parliament 46/47 Financial Statements 48 Notes to The Financial Statements 51 Appendix 1 – A sustainability report for HES 2015/16 80 We are the lead public body for Scotland’s historic environment, responsible for leading and enabling the delivery of Scotland’s first strategy for the historic environment, Our Place in Time Chair’s Report Aithisg a’ Chathraiche It is a great pleasure to introduce Scottish Ministers' expectation The approach we have adopted HES's first Annual Report, is that HES, as the new NDPB, from the outset, as set out in our marking the establishment is the lead body for the historic Corporate Plan, is driven by our of the new organisation. environment and will be key values: to be collaborative, responsible for overall delivery professional, innovative, open and HES was created by the Historic of the strategy. The Board and respectful, leading by example Environment Scotland Act 2014 staff have worked to develop and prioritising collaboration and assumed responsibilities a clear understanding and with new and existing partners. as a new organisation on articulation of that role, which In developing our new approach, October 1, 2015. The period combines continuity and legacy we have continued with the work covered by this Annual Report with the ambitious plans and the of our predecessor organisations therefore marks the completion values appropriate to meet the Historic Scotland and RCAHMS. of a transition programme, as challenges and opportunities For example, climate change well as a new beginning. created by the new role and is a major priority for our new responsibilities. A major milestone organisation, and an area in HES was established in the was therefore Ministerial approval which we will be developing context of Scotland’s first and the publication of our first our lead role, based on our in- ever strategy for the historic Corporate Plan For all our Futures depth evidence and research. environment Our Place in in May 2016. Alongside this we A key element of this has been Time. The strategy outlines a developed a new corporate continuing work in creating ten year vision for the sector, identity which graphically Scotland’s first dedicated building which sees Scotland’s historic represents the organisation’s conservation centre, the Engine environment understood and values as a key part of the historic Shed, which is due to open in valued, cared for and protected, environment, and also represents spring 2017. £8.9 million is being enjoyed and enhanced. In that role and ambition to act as a spent on sensitively restoring a realising that vision, the strategy corner stone for the sector overall. historic former military building, is explicit that this will help to creating laboratory and learning ensure that the cultural, social facilities, which will be available and economic contribution for professional and public of our heritage continues to access and link with other major make a major contribution providers such as Forth Valley to the national well-being. College and the University of Stirling. The Engine Shed is supported by a grant from the Heritage Lottery Fund. 4 Annual Report and Financial Statements 50/50 – EQUALITY We are committed to the Partnership for Change working towards a 50/50 gender balanced Board by 2020. 6% REDUCTION in electricity consumption across the HES estate. 162,590 MEMBERS 6 Annual Report and Financial Statements 58 APPRENTICES employed – helping to perpetuate traditional craft skills across the country. 3.83 MILLION VISITORS TO PROPERTIES IN CARE £14.5 MILLION (5% increase) annual grants commitment to the historic environment, given to local and national schemes, helping hundreds of projects across the country. Annual Report and Financial Statements 7 HES AT A GLANCE KEY ACHIEVEMENT KEY ACHIEVEMENT TRANSPARENCY INNOVATING INTRODUCED NEW PUBLIC DECISIONS UTILISED INNOVATIVE NEW PORTAL FOR DESIGNATIONS AND SURVEYING, RECORDING, AND SCHEDULED MONUMENT CONSENT, TO PRESENTATION METHODS, USING PROVIDE OPERATIONAL TRANSPARENCY. LASER SCANNING AND DIGITAL PLATFORMS TO MAKE THE HISTORIC ENVIRONMENT MORE ACCESSIBLE THAN EVER BEFORE. KEY ACHIEVEMENT KEY ACHIEVEMENT KEY ACHIEVEMENT PROTECTING PROMOTING CLIMATE CREATED A SCHEME OF DELEGATION DEVELOPED AN INTERIM ACCESS PUBLISHED FIRST HES CARBON TO GUIDE HOW WE MANAGE POLICY TO PROMOTE GREATER MANAGEMENT ACTION PLAN, AND PROTECT THE 330 PLUS DIVERSITY, ENGAGEMENT AND EXPLAINING OUR COMMITMENT TO PROPERTIES AND ASSOCIATED PARTICIPATION AMONG GROUPS CLIMATE CHANGE MANAGEMENT. COLLECTIONS IN OUR CARE. WHO ACCESS OUR PROPERTIES. 8 Annual Report and Financial Statements KEY ACHIEVEMENT KEY ACHIEVEMENT KEY ACHIEVEMENT COMMUNITY TRADITIONAL SHARING ORGANISED SCOTLAND’S CRAFT SKILLS KNOWLEDGE URBAN PAST (SUP) INITIATIVE TO CONTINUED TO NURTURE CRAFT IMPROVED LOCAL AND NATIONAL INVESTIGATE AND DOCUMENT SKILLS AND PROGRESSED HISTORIC ENVIRONMENT COMMUNITY EXPERIENCES. THE CONSTRUCTION OF RECORDS THROUGH NEW SCOTLAND'S DEDICATED SURVEYING AND RECORDING BUILDING CONSERVATION HUB. STRATEGY THAT COMPLEMENTS EXISTING SHED STRATEGY. KEY ACHIEVEMENT KEY ACHIEVEMENT KEY ACHIEVEMENT STRATEGY WORLD ARCHAEOLOGY INITIATED DELIVERY OF SCOTLAND’S HERITAGE LAUNCHED SCOTLAND’S FIRST FIRST HISTORIC ENVIRONMENT ARCHAEOLOGY STRATEGY, STRATEGY, PLAYING A LEAD MAINTAINED CLOSE WORKING SETTING OUT A SHARED VISION ROLE IN ACTIVE FACILITATION, RELATIONSHIP WITH PARTNERS TO FOR THE ENTIRE SECTOR. DISCUSSION AND MEASUREMENT MANAGE AND PROTECT SCOTLAND’S OF THE STRATEGY. SIX UNESCO WORLD HERITAGE SITES. Annual Report and Financial Statements 9 The Trustees' Report includes the governance statement, set out below. Trustees’ Report Structure, Governance and Management Aithisg nan Urrasairean structar, riaghlachas is manaidsearachd THE ORGANISATION HES is a Non Departmental Public HES is a new public body Body (NDPB) sponsored by the created under The HES Act Directorate for Culture, Tourism 2014. On October 1, 2015, the and Major Events in Scottish staff, functions, assets and Government. HES was registered liabilities of Historic Scotland as a Scottish Charity (SC045925) transferred to HES. These on August 20, 2015 with the financial statements are for the following charitable purposes: year ended March 31, 2016 but as the Charity did not commence • The advancement of education operating until October 1 the • The advancement of the arts, financial results represent the heritage, culture or science six months activity to April 2016. • The advancement of The Key Performance Indicators, environmental protection or however, are reported for the improvement full financial year 2015-16 as a measure of delivery of the Annual HES wholly owns two Business Plan which set out the subsidiaries: Scran Ltd and priorities for Historic Scotland, Historic Environment Scotland RCAHMS and then HES. Enterprises Limited, which operate commercial services. Historic Environment Scotland Enterprises Limited commenced trading on April 1, 2016, so there are no reported results for this subsidiary in the year. The assets and liabilities of the Scran Trust including its subsidiary Scran Ltd, were transferred to HES on February 22, 2016. The results of Scran Ltd from this date to March 31, 2016 are consolidated with HES in these statements. Scran Ltd ceased trading on the March 31, 2016. 10 Annual Report and Financial Statements REFERENCE AND Bankers Solicitors ADMINISTRATION Royal Bank of Scotland Morton Fraser 36 St Andrew Square 2 Lister Square DETAILS Edinburgh EH2 2YB Quartermile Two Principal Office and Registered Simpson Loan, Address NatWest Edinburgh EH3 9GL Longmore House c/o Government Banking Service Salisbury Place Southern House (7th Floor) Auditors Edinburgh EH9 1SH Wellesley Grove External: Croydon KPMG LLP Charity Number Surrey CR9 1WW Saltire Court SC045925 20 Castle Terrace Bank of Scotland Edinburgh EH1 2EG 300 Lawnmarket Edinburgh EH1 2PH Internal: Scottish Government internal audit St Andrew’s House Regent Road Edinburgh EH1 3DG BOARD OF TRUSTEES The HES Board, including Trudi Craggs HES is governed by a Board of the chair, can consist of up to Trudi Craggs is Trustees appointed by the Cabinet 15 non-executive members. qualified as a solicitor Secretary for Culture, Tourism and The membership of the in Scotland and is External Affairs, in accordance Board of Trustees during a partner in CMS with the Code of Practice for