SENSE SCOTLAND
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Company Registration No. SC147570 (Scotland)
Charity Registration No. SC022097 (Scotland)
SENSE SCOTLAND
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Angela Clements
(Chair)
John Richards MBE
(Vice Chair)
Suzanne Clark
Rodney Clark OBE
Neil Farquharson
Adam Ingram
Kris Murali
Martha Shortreed
Secretary
Elspeth Talbot
Charity number (Scotland)
SC022097
Company number
SC147570
Principal address
TouchBase Glasgow
43 Middlesex Street
Kinning Park
Glasgow
G41 1EE
Registered office
TouchBase Glasgow
43 Middlesex Street
Kinning Park
Glasgow
G41 1EE
Auditor
William Duncan + Co (Audit) Ltd
Ellersley House
30 Miller Road
Ayr
Ayrshire
KA7 2AY
Bankers
Bank of Scotland
Royal Bank of Scotland plc
PO Box 17235
Glasgow City Branch (A)
Edinburgh
Glasgow
EH11 1YH
G1 3PL
Solicitors
Lindsays LLP
Eversheds LLP
1 Royal Bank Place
3 Melville Street
Buchanan Street
Edinburgh
Glasgow
EH3 7PE
G1 3AA
Wright Johnston & Mackenzie LLP
St Vincent Plaza
319 St Vincent Street
Glasgow
G2 5RZ
SENSE SCOTLAND
CONTENTS
Page
Chair's statement
1
Trustees' report
2 - 11
Statement of trustees' responsibilities
12
Independent auditor's report
13 - 15
Statement of financial activities
16 - 17
Balance sheet
18
Statement of cash flows
19
Notes to the financial statements
20 - 43
SENSE SCOTLAND
CHAIR'S STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

My 2021/22 statement ended with the hope that 2022/23 would be a more “normal” year.

In Covid terms, it was, as the prevalence of the virus waned, however, in other ways, it has been a year like no other – and not just in Sense Scotland, but across the whole social care sector.

In the face of many challenges, Sense Scotland continues to perform well, and the Board of Trustees remain proud of the high standard of care and support delivered by all staff across all functions, and the commitment they show to the organisation.

Particular highlights of the year include the performance of our Shops and Fundraising teams; strong Care Inspectorate scores; the ongoing integration of the Visual Impairment and Learning Disability (VILD) services which transferred to us in January 2022, and a morale-boosting visit from our Patron, Her Royal Highness The Princess Royal, to our TouchBase Dunbartonshire in October 2022. Our new website and strapline were also launched and have been used to great effect throughout the year, giving a much more modern feel to all of our internal and external communications.

The challenges, however, are significant, and almost all route back to the chronic under-funding of social care. The Adult Social Care Rate, set by Scottish Government, is inadequate and does not reflect the responsibility our staff carry, nor the value of the work they do. Attracting high quality staff to the sector is increasingly difficult, and retaining those we already have is equally tough.

My reflection on 2022/23 is that Sense Scotland is doing a remarkable job despite the current climate: all those things within our control and influence are being led and managed well, delivering impact to our beneficiaries.

My hope for 2023/24 is that we see a significant change in attitude towards third sector social care, an acknowledgement of the inherent unfairness in the system, and the consequential financial reward for services and a workforce which are truly appreciated.

As Chair, I know that Sense Scotland will continue to do the very best it can for the people it supports, and wonder how much more could be achieved with the appropriate Scottish Government support.

Angela Clements
Chair
Date: 4 October 2023
SENSE SCOTLAND
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -

The trustees present their annual report and financial statements for the year ended 31 March 2023.

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 charitable company's Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "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)" (effective 1 January 2019).

Objectives and activities

Our vision is for the people we work with to live meaningful and independent lives in a world which supports them to achieve their own ambitions.

Our strategic objectives of Quality, Personalisation and Sustainability & Growth underpin all that we do. We review these objectives and our progress towards meeting them, as well as our internal and external operating environment, on a regular basis.

We work in partnership with the people we support, families, carers, and professionals to support and promote the interests of children, young people and adults who have communication support needs arising from a range of disabilities including, but not limited to, deafblindness, autism, cerebral palsy, sensory impairment, learning or physical disability, often against a backdrop of complex health needs.

We deliver services which provide choice and continuity across all age groups, and work closely with the individuals we support, their families and carers, and with professionals working in our field, to continually develop and improve service delivery, aiming at all times to exceed expectations.

We provide services in a variety of ways and use a person-centred approach, meeting the needs of the individual in a number of environments and settings; those services and settings can be housing support, respite services, day support, and charitable services supported by fundraising and grants.

We aim to be the provider of choice and to be recognised for developing and fitting our services around the individual. This requires us to respond quickly and effectively to changes in the social care sector, levels of expectation, changes in legislation and regulation and funding.

Our Values

 

These values apply to all of us – staff, trustees, volunteers, people we support, families and carers and others that we work with – and are an integral part of our induction and training, our communications and working policies.

We take a risk-enabling approach and believe that developing good communication skills with people helps to achieve the necessary balance of supporting individual choice while minimising risks to safety.

SENSE SCOTLAND
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

We provide high quality social care and charitable services, nationally and internationally, to over 1000 people and their families.

The impact of our work goes beyond those directly supported, and includes assisting families to understand their rights, access services and raise matters of importance to them. Our National Family Partnership Forum facilitates this.

Our 15 shops provide a much-needed and welcome alternative to shoppers throughout Scotland, and do so in a way that reuses, recycles, and contributes to safeguarding our environment.

We provide opportunities for people to volunteer with Sense Scotland, and currently have around 100 volunteers. We support them in the hope they can enrich their own lives and those of others.

We also provide opportunities for people to support our endeavours by their own fundraising.

We carry out surveys on the quality of what we provide, receiving positive feedback both internally and from the Care Inspectorate.

We encourage collaborative and partnership working.

We give those we support the opportunity to gain recognised awards through ASDAN, a pioneering curriculum development organisation and awarding body, offering programmes and awards which explicitly grow skills for learning, skills for work and skills for life.

The trustees have paid due regard to guidance issued by the Office of the Scottish Charity Regulator (OSCR) in deciding what activities the charitable company should undertake.

Strategic report

The description under the headings "Achievements and performance" and "Financial review" meet the company law requirements for the trustees to present a strategic report.

SENSE SCOTLAND
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
Achievements and performance

The past year has again been one of significant challenge: the continued, albeit reduced, impact of the Covid19 pandemic lingers, however, by far the bigger threat to the organisation, and the sector as a whole, is the chronic Government under-funding of social care. Low pay makes recruitment and retention of staff incredibly difficult, and thereby increases reliance on agency staff, which in turn leads to higher costs.

Despite all of this, our emphasis in the Operations function of the organisation over the past year has been on quality, with the establishment of an Operations Support Team to drive this. We have also continued to monitor and increase capacity (post-Covid19), although the recruitment and retention challenges referred to above impact this.

A strategic Workforce Group meets monthly to review recruitment and retention figures and generally discuss staffing pressures.

Our Staff and Volunteer Awards were held, in person, in September 2022 for the first time since 2018.

In June, a new role of Director of Planning, Development and Engagement was added to the Executive Team, and has greatly improved the functions within the role’s remit.

Our internal and external communications have improved, with the launch of our new website at the beginning of the Financial Year, and a focus on continually improving and updating content. The website incorporates our new strapline, “We Care, We Connect, We Communicate”, and our new colour palette, both of which have been used to great effect throughout the year.

Internally, we now circulate a weekly “In Touch” to all staff, which features messages from the Chair of the Board and the Chief Executive each month. We also send a monthly “Care and Connect” to all families.

Staff Engagement - Sense Scotland is committed to being a responsible organisation and employer. Our behaviour is aligned with the expectations of our staff, volunteers, the people we support, local authority customers, donors, funders and the communities in which we work. Our staff are the heart of the services we deliver and we encourage the involvement of employees through our Staff Partnership Forum ,weekly communications and annual surveys. We ensure we share common values that inform and guide our behaviours, so we achieve our goals in the right way. We invest heavily in staff training and development, with a high-quality programme for all staff, which commits to ongoing personal growth.

We are committed to eliminating discrimination and encouraging equality and diversity in our workforce. This is grounded in a fundamental commitment to human rights, and made explicit in an organisational policy, which includes assurance of equality and fairness in respect of gender. Sense Scotland is committed to stable contracts, fair and equal pay for all staff and the provision of a safe and secure working environment.

 

 

SENSE SCOTLAND
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -

Our Fundraising activities have benefitted from the resumption of face-to-face activities, with good participation in the various Kiltwalks and a very successful Ladies’ Lunch at the end of 2022/23. We continue to communicate with donors throughout the year via our Loud and Clear publication, and also introduced the Sense Scotland Lottery this year.

Our Charity Shops traded throughout the year and, while we haven’t grown our portfolio, our sales in the existing shops have increased significantly over the year. Energy costs, however, impact on profit.

Our charitable services have increased their profile, impact and reach throughout the year.

In October, we agreed to work with a social enterprise, Mecoco, who make candles and provide volunteering opportunities for people with a disability, to learn from and support each other.

In addition to our ASDAN awards (previously mentioned) we now offer Duke of Edinburgh Awards to the people we support.

In March 2023 we received confirmation of funding to establish a Learning Hub, a 3-year individualised programme aimed at school leavers aged 18-21 with communication support needs. Preparatory work has started with a view to being up-and-running in Autumn 2023.

In January, we re-opened our café in TouchBase Glasgow (which was closed during the Covid19 period) for staff and people we support.

In the background, we’ve continued to strengthen our ICT, Finance, Learning & Development, HR and Recruitment Teams. To support the Recruitment Team, we introduced Job Train, an applicant tracking system.

We were delighted that Her Royal Highness, The Princess Royal, renewed her patronage of Sense Scotland for a further 3 years, and even more delighted when, in October 2022, she agreed to visit one of our services which had transferred from RNIB in January 2022. TouchBase Dunbartonshire was the venue, and staff, families and Trustees were there to meet her.

Financial review

In Financial Year 2022/23, 89% of our income was derived from commissioned services from local authorities which developed into Health & Social Care Partnerships. We currently work with 22 local authorities. In addition, we work in partnership with several grant funders, including Children in Need, Robertson Trust, Creative Scotland, Barclays and many others to provide non-statutory services to the people we support and their families.

In 2022/23 total income was £24,917,392, up by £3,663,998 (17%) on the previous year. Income from Care Services was £22,232,280 compared to £18,722,106 the previous year. Donations and legacies were £971,219 in 2022/23 compared to £1,067,079 in 2021/22. Expenditure increased from £21,472,597 in 2021/22 to £25,487,357 in 2022/23, an increase of £4,014,760 (19%).

On January 17 2022, 4 services and circa 100 staff and service users transferred into Sense Scotland from RNIB. The transfer was smoothly implemented and has added to the income and reach of Sense Scotland. A full year of these services is included in the results to 31 March 2023.

Major grants received are identified in note 4 to the financial statements. The Trustees are indebted to all donors for their support, both financial and otherwise, without which it would not have been possible to achieve all that we have.

The Trustees wish to note the continued support of the Scottish Government in respect of a variety of funds. The Trustees also wish to note their thanks to local authorities, health boards and other statutory agencies who have continued to support Sense Scotland through grant and other funding.

Expenditure

Operating Expenditure increased by £4,014,760 (19%) from £21,472,597 in 2021/22 to £25,487,357 in 2022/23.

In the year to 31 March 2023, the salary rate for adult social care workers was increased from £10.02 to £10.50 in April 2022.

SENSE SCOTLAND
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -

An increase in the use of agency staff versus prior year was once again required to assist in areas of staff shortages. Both of these, along with the increased running costs associated with the RNIB services now embedded within Sense Scotland, contributed to the increase in Operating Expenditure.

Salary costs at £21,480,278 (£18,017,731 in 2021/22) remain our main area of expenditure, accounting for 84% of total expenditure.

Our key financial performance indicators during the year were as follows:

 

2023

 

2022

 

£

 

£

Donations & Legacies

971,219

 

1,067,079

Charitable Activities

22,232,280

 

18,722,106

Other trading activities

1,484,786

 

1,270,526

Investments

1,861

 

4,183

Other income

227,246

 

189,500

 

 

 

 

Total Income

24,917,392

 

21,253,394

 

 

 

 

Charitable Activities

23,779,384

 

19,758,222

Raising funds

321,314

 

363,637

Shops

1,386,659

 

1,350,738

 

 

 

 

Total Expenditure

25,487,357

 

21,472,597

 

 

 

 

Operating expenditure for the year

569,965

 

219,203

 

 

 

 

Pension Fund Provision Release

3,531,239

 

0

 

 

 

 

Net surplus/(deficit) for the year

2,961,274

 

-219,203

 

 

 

 

Unrestricted Funds

9,417,647

 

6,396,857


Overall result for the financial year ending 31st March 2023

Due to the release of the long-term pension liability net income for the year 2022/23 is £2,961,274. See comment in pension section.

Overall result from operating activities shows a deficit of £569,965 due in the main to rising labour costs and the ongoing use of agency staff to support staff vacancies. Sense Scotland is committed to rewarding its staff within its financial constraints in this period of increasing consumer costs and will continue to do so to maintain and reward its loyal workforce.

As a result of ongoing improved cash control and collection, the cash position at the end of the year improved slightly to £3,904,793 from £3,854,120 in the prior year (see note 28).

Pension Repayment Plan & Cessation

A further instalment of £75,205 of the agreed re-payment plan was paid in September 2022.

However, following a cessation valuation as at December 31, 2022 agreement was reached with the LPFA that Sense Scotland have paid sufficient contributions to have covered all liabilities and the funding agreement was terminated.

As a result the liability of £3,531,239 has been released to the income statement as non-operational Income.

SENSE SCOTLAND
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -

Reserves and Investments

The Trustees set a target of 12 weeks operating costs as a desired level of general reserves covering Net Current Assets, to ensure continuity of operations. This decision is reviewed annually, considering the nature of the client group for which the charity is entrusted to provide care and support.

As of 31 March 2023, the company has a level of 5.8 weeks’ cover. This is a reduction compared to the prior year due to a reduction in Net Assets (mainly debtors) and increased business running costs. The weeks’ cover is calculated by dividing the general reserves covering Net Current Assets (see note 23) by the average expenditure for one week.

SENSE SCOTLAND
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -

 

Risk Management

Enterprise Risk Management (ERM) is central to Sense Scotland’s strategic management process, whereby Sense Scotland methodically addresses the risks attaching to our activities.

It is the role of Trustees and the Senior Management Team (SMT) to translate the ERM approach into tactical and operational objectives, assigning responsibility throughout the organisation to each manager and employee responsible for the appropriate management of risk.

Each risk identified is clearly stated, stakeholders identified, quantified, control measures in place and any improvement actions required.

Directors and senior staff are accountable for strategic risk management within areas under their control, including the devolution of the risk management process to operational managers.

The Chief Executive is responsible for maintaining the Sense Scotland Risk Register and for reviewing it annually.

The Audit and Risk Committee reviews the Risk Register at each meeting, evaluating any updates and controls put in place by management. Risk Management is a standing agenda item for all Audit and Risk Committee meetings.

The safety and wellbeing of the people we support is central to our approach to risk, and risk assessment and management were key to our continued delivery in a Covid19 context. We adopt a risk-managed approach whilst working toward ensuring their ambitions and stated outcomes are met.

Going Concern

Alongside the operational challenges outlined above, the pandemic has impacted the financial performance of Sense Scotland. The Trustees and management team have taken proactive steps to mitigate this wherever possible.

 

In assessing Sense Scotland’s ability to continue as a going concern, the Trustees have considered the liquidity position of the company and the expected future cash flows under a downside (worst case) scenario.

 

While continued restrictions on the ability to deliver all of the usual services will be expected to reduce elements of Sense Scotland’s income, the Trustees have various mitigating actions available to them to reduce the negative impact on cash flows.

 

The forecast indicates that Sense Scotland will be able to continue to operate, to service its debts and pay its liabilities as they fall due for the period of the forecast analysis which covers at least 12 months from the date of this report. Accordingly, the Trustees have prepared the financial statements on a basis of going concern.

Financial Risk Management

Risk management is carried out under policies approved by the Board with financial risks being identified, evaluated and responded to by the Audit and Risk and Finance Committees.

Currency Risk

Sense Scotland operates almost wholly within the UK and is exposed to minimal currency risk. The organisation’s borrowings are denominated in Sterling.

Credit Risk

At the year end, approximately 64% of our debts were due by local authorities and five authorities represented 48% of the total. Despite this concentration, Sense Scotland considers that the credit risk attaching to these debts is low.

SENSE SCOTLAND
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -

Liquidity Risk

Prudent liquidity management implies maintaining sufficient cash balances and the availability of funding through an adequate amount of committed credit facilities. Due to the nature of the underlying business the aim is to maintain flexibility in funding by keeping committed credit lines available.

Cash Flow Interest Rate Risk

Sense Scotland has no significant interest-bearing assets and its income and operating cash flows are substantially independent of changes in market interest rates.

How did we perform against the plans we set out in last year’s Trustees’ Annual Report?

Our aim for 2022/23 was to continue to deliver and develop good quality, safe, sustainable and impactful social care and charitable services, while strengthening and improving our infrastructure to monitor improvement, support growth and respond to the external operating environment.

This has been achieved, despite the social care sector challenges, due to a lot of hard work and commitment from the entire workforce.

Plans for future periods

Our new 3-year strategy launched at the end of 2022/23 and focuses on six key strategic aims over that period:

Structure, governance and management

Sense Scotland is a charitable company incorporated as a private company limited by guarantee. Sense Scotland was established as a charitable company in November 1993 and is governed by Articles of Association, as revised and approved on 3rd July 2023, under the Companies Act 2006.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Angela Clements
John Richards MBE
Suzanne Clark
Rodney Clark OBE
Neil Farquharson
Colin Hetherington
(Resigned 18 August 2023)
Adam Ingram
Kris Murali
Martha Shortreed
Gary Simpson
Elspeth Talbot
SENSE SCOTLAND
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -

Appointment of Trustees

The Board of Trustees is responsible for the appointment of additional Trustees from time to time. The Nominations Committee is a sub-committee of the Board which has delegated responsibility to manage the recruitment and selection of Trustees. As far as possible, recruiting Trustees (whether by co-option or election) covers the widest possible search. This ensures that the most experienced and capable Board is formed. It is important that the Board is able to recruit new members whilst retaining the stability to govern the organisation.

Sense Scotland aims to create a Board that is representative of its beneficiaries and includes parents/carers of those we support. At least half of the Board’s Trustees have links to communication support needs, whether personally, professionally or as a parent/carer/family member, recognising the diversity within disability.

The role of the Board includes strategic planning, financial and legal monitoring of a wide range of activities, and authorship and custodianship of Sense Scotland’s mission and values. To do this, the Board needs a wide range of skills, knowledge and experience to enable it to effectively fulfil its duties.

Trustee induction and training

New Trustees undergo an orientation day to brief them on: their legal obligations under charity and company law; the Scottish Charity Regulator’s guidance on Trustee duties; the content of the Articles of Association; the committee and decision-making processes; the business plan and recent financial performance of the charity. Trustees have access to a resource pack consisting of a Governance Handbook, organisational structures and external support and advice in carrying out their role.

Organisation

The Board of Trustees, which can have up to 15 members, with a quorum of 5 members, is responsible for the strategic direction and policy of the charity. The Board meets four times per annum (over the past year, meetings have again been held virtually).

There are seven sub-committees as follows:

Sub-Committee

Purpose

Finance

To ensure that financial resources are employed appropriately in furtherance of strategic objectives.

Audit and Risk

To monitor and review the effectiveness of internal and external auditing procedures and outcomes, advising and reporting to the Board.

Remuneration

To ensure that both the remuneration strategy and its implementation is perceived by all stakeholders to be transparent, fair and effective.

Nominations

To identify any skills gaps in the Board membership, oversee the recruitment processes of Board members and make recommendations to the Board of new Board members for election or co-option.

Fundraising

To support the Fundraising Team through generation of ideas and sharing of contacts.

External Affairs

To support and promote the organisation through relationships with external stakeholders.

Governance

To ensure effective and efficient governance of Sense Scotland, and conduct a regular skills audit of the Trustees versus the strategic requirements of the organisation.

SENSE SCOTLAND
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -

Each Committee reviews its Terms of Reference annually.

A scheme of delegation is in place and day to day responsibility for the provision of services rests with the Chief Executive along with the Executive Team and Senior Management Team (see note 26).

The Executive Directors (Key Management Personnel)

Angela Bonomy         Chief Executive Officer

Brian Murphy         Director of Operations

David Donnelly         Director of Finance

Joanne O'Donnell     Director of Planning, Development & Engagement.

* These directors, although designated as directors, are not statutory directors.

Auditor

In accordance with the company's articles, a resolution proposing that William Duncan + Co (Audit) Ltd be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

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

Angela Clements
Trustee
4 October 2023
SENSE SCOTLAND
STATEMENT OF TRUSTEES' RESPONSIBILITIES  
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -

The trustees, who are also the directors of Sense Scotland for the purpose of company law, 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).

 

Company Law 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company 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 UK 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 charitable company will continue in operation.

 

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

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

 

SENSE SCOTLAND
INDEPENDENT AUDITOR'S REPORT
TO THE TRUSTEES OF SENSE SCOTLAND
- 13 -

Opinion

We have audited the financial statements of Sense Scotland (the ‘charitable company’) for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

-

give a true and fair view of the state of the charitable company's affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-

have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

SENSE SCOTLAND
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE TRUSTEES OF SENSE SCOTLAND
- 14 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

-

the information given in the trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report and the strategic report prepared for the purposes of company law, is consistent with the financial statements; and

-

the strategic report and the directors' report included within the trustees' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report included within the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

-

adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-

the financial statements are not in agreement with the accounting records and returns; or

-
certain disclosures of trustees' remuneration specified by law are not made; or
-

we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charitable company for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under Chapter 3 of Part 16 of the Companies Act 2006 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

SENSE SCOTLAND
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE TRUSTEES OF SENSE SCOTLAND
- 15 -

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charity’s trustees, as a body, in accordance with regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members and trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company, the charitable company’s members as a body,and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Mr Stephen Bargh CA (Senior Statutory Auditor)
for and on behalf of William Duncan + Co (Audit) Ltd
6 October 2023
Chartered Accountants
Statutory Auditor
Ellersley House
30 Miller Road
Ayr
Ayrshire
KA7 2AY

William Duncan + Co (Audit) Ltd is eligible for appointment as auditor of the charitable company by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

SENSE SCOTLAND
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 16 -
Current financial year
Unrestricted
Restricted
Total
Total
funds
funds
2023
2023
2023
2022
Notes
£
£
£
£
Income and endowments from:

Donations and legacies

3
961,688
9,531
971,219
1,067,079
Charitable activities
4
21,689,072
543,208
22,232,280
18,722,106
Other trading activities
5
1,482,539
2,247
1,484,786
1,270,526
Investments
6
1,861
-
1,861
4,183
Other income
7
228,246
(1,000)
227,246
189,500
Total income
24,363,406
553,986
24,917,392
21,253,394
Expenditure on:
Raising funds
Fundraising and publicity
8
310,633
10,894
321,527
363,637

Shops

8
1,387,801
-
1,387,801
1,350,738
1,698,434
10,894
1,709,328
1,714,375
Charitable activities
9
23,153,409
624,620
23,778,029
19,758,222
Total expenditure
24,851,843
635,514
25,487,357
21,472,597
Net expenditure for the year/
Net outgoing resources
(488,437)
(81,528)
(569,965)
(219,203)
Other recognised gains and losses
Release of pension funding provision
3,531,239
-
3,531,239
-
Net movement in funds
3,042,802
(81,528)
2,961,274
(219,203)
Fund balances at 1 April 2022
6,396,857
306,760
6,703,617
6,922,820
Fund balances at 31 March 2023
9,439,659
225,232
9,664,891
6,703,617

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
SENSE SCOTLAND
STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 17 -
Prior financial year
Unrestricted
Restricted
Total
funds
funds
2022
2022
2022
Notes
£
£
£
Income and endowments from:

Donations and legacies

3
1,044,479
22,600
1,067,079
Charitable activities
4
18,249,475
472,631
18,722,106
Other trading activities
5
1,270,526
-
1,270,526
Investments
6
4,183
-
4,183
Other income
7
189,500
-
189,500
Total income
20,758,163
495,231
21,253,394
Expenditure on:
Raising funds
Fundraising and publicity
8
363,637
-
363,637

Shops

8
1,350,738
-
1,350,738
1,714,375
-
1,714,375
Charitable activities
9
19,308,913
449,309
19,758,222
Total expenditure
21,023,288
449,309
21,472,597
Net expenditure for the year/
Net outgoing resources
(265,125)
45,922
(219,203)
Other recognised gains and losses
Net movement in funds
(265,125)
45,922
(219,203)
Fund balances at 1 April 2021
6,661,982
260,838
6,922,820
Fund balances at 31 March 2022
6,396,857
306,760
6,703,617
SENSE SCOTLAND
BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 18 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
15
7,223,473
7,266,094
Current assets
Debtors
16
1,841,558
2,425,035
Cash at bank and in hand
3,904,793
3,854,120
5,746,351
6,279,155
Creditors: amounts falling due within one year
18
(2,644,748)
(2,519,447)
Net current assets
3,101,603
3,759,708
Total assets less current liabilities
10,325,076
11,025,802
Creditors: amounts falling due after more than one year
19
(660,185)
(715,741)
Provisions for liabilities
-
(3,606,444)
Net assets
9,664,891
6,703,617
Income funds
Restricted funds
22
225,232
306,760
Unrestricted funds
9,439,659
6,396,857
9,664,891
6,703,617
The financial statements were approved by the Trustees on 4 October 2023
Angela Clements
John Richards MBE
Trustee
Trustee
Company registration number SC147570
SENSE SCOTLAND
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
341,395
464,543
Investing activities
Purchase of tangible fixed assets
(238,507)
(523,575)
Proceeds from disposal of tangible fixed assets
1,480
2,000
Investment income received
1,861
4,183
Net cash used in investing activities
(235,166)
(517,392)
Financing activities
Proceeds from new bank loans
-
600,000
Repayment of bank loans
(55,556)
(55,555)
Net cash (used in)/generated from financing activities
(55,556)
544,445
Net increase in cash and cash equivalents
50,673
491,596
Cash and cash equivalents at beginning of year
3,854,120
3,362,524
Cash and cash equivalents at end of year
3,904,793
3,854,120
SENSE SCOTLAND
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
1
Accounting policies
Charity information

Sense Scotland is a private company limited by guarantee incorporated in Scotland. The registered office is TouchBase Glasgow, 43 Middlesex Street, Kinning Park, Glasgow, G41 1EE.

1.1
Accounting convention

The financial statements have been prepared in accordance with the charitable company's Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) 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)" (effective 1 January 2019). The charitable company is a Public Benefit Entity as defined by FRS 102.

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

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Going concern

Alongside the operational challenges outlined in the Trustees Report, the pandemic has impacted the financial performance of Sense Scotland. The Trustees and management team have taken proactive steps to mitigate this wherever possible.

 

In assessing Sense Scotland's ability to continue as a going concern, The Trustees have considered the liquidity position of the company and the expected future cash flows under a downside (worst case) scenario.

 

While continued restrictions on the ability to deliver all of the usual services will be expected to reduce elements of Sense Scotland's income, the Trustees have various mitigating actions available to them to reduce the negative impact on cash flows.

 

The forecast indicates that Sense Scotland will be able to continue to operate , to service its debts and pay its liabilities as they fall due for the period of the forecast analysis which covers at least months from the date of the financial statements.

 

At the time of approving the financial statements, the trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. 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.

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

SENSE SCOTLAND
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 21 -
1.4
Income

Income is recognised when the charitable company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Direct activities represent income earning in respect of contracted services with local authorities, health boards and other statutory agencies and are recognised when the services are performed.

Cash donations are recognised on receipt. Other donations are recognised once the charitable company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

 

Voluntary income is received by way of grants and donations, committed giving and legacies which are included in full in the Statement of Financial Activities when receivable. Grants where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.

 

Investment income is included when receivable.

Legacies are recognised on receipt or otherwise if the charitable company has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Income from non cash donations, other than goods donated for sale through our shops, are valued at an estimate of their value to the charity. Volunteer services are not quantified nor included in the financial statements.

Income from Charity retail shops, through sale of donated goods, and from the sale of our Christmas cards and merchandise is accounted for on a receivable basis.

Income generated from Fundraising income is similarly accounted for on a receivable basis, except for event income where income is recognised when invoiced.

1.5
Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

 

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

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.

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:

Freehold land and buildings
50 years
Fixtures and fittings
4 years
Motor vehicles
4 years
SENSE SCOTLAND
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 22 -

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
Impairment of fixed assets

At each reporting end date, the charitable company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The charitable company 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 charitable company's balance sheet when the charitable company 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 and bank loans 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.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charitable company’s contractual obligations expire or are discharged or cancelled.

SENSE SCOTLAND
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 23 -
1.10
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

 

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as incurred.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in income/(expenditure) for the year.

 

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other recognised gains and losses in the period in which they occur and are not reclassified to income/(expenditure) in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

2
Critical accounting estimates and judgements

In the application of the charitable company’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

SENSE SCOTLAND
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
3

Donations and legacies

Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2023
2023
2023
2022
2022
2022
£
£
£
£
£
£
Donations and gifts
679,942
9,031
688,973
943,823
22,600
966,423
Legacies receivable
233,496
500
233,996
100,656
-
100,656

Gifts In Kind

48,250
-
48,250
-
-
-
961,688
9,531
971,219
1,044,479
22,600
1,067,079

Gifts In Kind

A significant amount of work is undertaken for Sense Scotland on an unpaid basis by volunteers. The financial value attached to the unpaid volunteer help has not been quantified and is not reflected in the financial statements. However, Sense recognises and acknowledges the significant reduction in running costs achieved by the provision of such help.

 

Included within Gifts in kind is an amount representing the market value of retail outlets gifted for use by the Charity during the year. Where a value can be assigned for gifts in kind this has been quantified as above.

SENSE SCOTLAND
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 25 -
4
Charitable activities

Housing Support

Day Services

Respite

Arts Programmes

Development

Other Activities

Total
2023
Total
2022
2023
2023
2023
2023
2023
2023
£
£
£
£
£
£
£
£

Local Authority services provided under contract

12,831,368
3,829,525
37,766
736
-
-
16,699,395
14,921,137

Direct payments

1,390,522
1,633,121
1,336,334
11,838
-
2,489
4,374,304
2,822,836

Grants receiveable

-
254,009
5,950
172,918
99,115
298,335
830,327
534,526
Charitable rental income
70,684
2,917
-
-
-
-
73,601
62,363
Other income
187,879
56,042
10,732
-
-
-
254,653
381,244
14,480,453
5,775,614
1,390,782
185,492
99,115
300,824
22,232,280
18,722,106
Analysis by fund
Unrestricted funds
14,480,453
5,765,682
1,384,832
47,313
92
10,700
21,689,072
18,249,475
Restricted funds
-
9,932
5,950
138,179
99,023
290,124
543,208
472,631
14,480,453
5,775,614
1,390,782
185,492
99,115
300,824
22,232,280
18,722,106
SENSE SCOTLAND
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
4
Charitable activities
(Continued)
- 26 -

Housing Support

Day Services

Respite

Arts Programmes

Development

Other Activities

Total
2023
Total
2022
2023
2023
2023
2023
2023
2023
£
£
£
£
£
£
£
£
Performance related grants
Fife HSCP (unrestricted)
206,709
206,709
38,649
Fife Council (unrestricted)
31,760
31,760
6,394
Glasgow Credit Union (restricted)
500
500
500
Shell (restricted)
1,850
1,850
-
Gannett Foundation (restricted)
1,190
1,190
-
First Direct (restricted)
12,000
12,000
-
Fife HSCP (restricted)
333
333
-
Hospital Saturday Fund (restricted)
2,333
2,333
9,999
B&Q Foundation (restricted)
3,284
3,284
-
The Scottish Council (unrestricted)
-
-
5,818
Creative Scotland (unrestricted)
33,339
33,339
-
Glasgow City Council (unrestricted)
1,400
1,400
-
Creative Scotland (restricted)
109,688
109,688
129,399
Glasgow City Council (restricted)
23,491
23,491
19,281
Cardinal Winning Council (restricted)
-
-
3,856
Museums Galleries Scotland (restricted)
5,000
5,000
-
SENSE SCOTLAND
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
4
Charitable activities
(Continued)
- 27 -

Housing Support

Day Services

Respite

Arts Programmes

Development

Other Activities

Total
2023
Total
2022
2023
2023
2023
2023
2023
2023
£
£
£
£
£
£
£
£
Independence at Home (unrestricted)
92
92
-
Scottish Government (restricted)
-
-
235,260
Robertson Trust (restricted)
25,000
25,000
25,000
Children In Need (restricted)
23,335
23,335
20,058
SAAS Grant (restricted)
-
-
11,145
Skills Development Fund (restricted)
6,758
6,758
8,500
Charities Trust (restricted)
-
-
8,333
Scottish Social Services Council (restricted)
24,000
24,000
-
North Lanarkshire Council (restricted)
10,000
10,000
-
Inspiring Scotland (restricted)
9,650
9,650
-
NHS Highland (restricted)
280
280
-
NHS Tayside (unrestricted)
10,700
10,700
10,700
Challenger Children Fund (unrestricted)
-
-
1,000
Independence at home (unrestricted)
-
-
634
Corra Foundation (restricted)
157,500
157,500
-
Welfare Rights Service (restricted)
91,667
91,667
-
Shared Care Scotland (restricted)
8,821
8,821
-
Alliance Scotland (restricted)
11,381
11,381
-
Cycling Scotland (restricted)
18,266
18,266
-
-
254,009
5,950
172,918
99,115
298,335
830,327
534,526
SENSE SCOTLAND
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
4
Charitable activities
(Continued)
- 28 -
For the year ended 31 March 2022

Housing Support

Day Services

Respite

Arts Programmes

Development

Other Activities

Total
2022
£
£
£
£
£
£
£

Local Authority services provided under contract

12,243,352
2,678,840
(1,007)
(48)
-
-
14,921,137

Direct payments

624,420
1,143,742
1,052,916
1,758
-
-
2,822,836

Grants receiveable

-
45,543
9,999
158,354
308,296
12,334
534,526
Charitable rental income
61,738
625
-
-
-
-
62,363
Other income
294,092
8,945
78,207
-
-
-
381,244
13,223,602
3,877,695
1,140,115
160,064
308,296
12,334
18,722,106
Analysis by fund
Unrestricted funds
13,222,302
3,877,195
1,130,116
7,528
-
12,334
18,249,475
Restricted funds
1,300
500
9,999
152,536
308,296
-
472,631
13,223,602
3,877,695
1,140,115
160,064
308,296
12,334
18,722,106
SENSE SCOTLAND
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
4
Charitable activities
(Continued)
- 29 -

Housing Support

Day Services

Respite

Arts Programmes

Development

Other Activities

Total
2022
£
£
£
£
£
£
£
Performance related grants
Fife HSCP (unrestricted)
38,649
38,649
Fife Council (unrestricted)
6,394
6,394
Glasgow Credit Union (restricted)
500
500
Hospital Saturday Fund (restricted)
9,999
9,999
The Scottish Council (unrestricted)
5,818
5,818
Creative Scotland (restricted)
129,399
129,399
Glasgow City Council (restricted)
19,281
19,281
Cardinal Winning Council (restricted)
3,856
3,856
Scottish Government (restricted)
235,260
235,260
Robertson Trust (restricted)
25,000
25,000
Children In Need (restricted)
20,058
20,058
SAAS Grant (restricted)
11,145
11,145
Skills Development Fund (restricted)
8,500
8,500
Charities Trust (restricted)
8,333
8,333
NHS Tayside (unrestricted)
10,700
10,700
Challenger Children Fund (unrestricted)
1,000
1,000
Independence at home (unrestricted)
634
634
-
45,543
9,999
158,354
308,296
12,334
534,526
SENSE SCOTLAND
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 30 -
5
Other trading activities
Unrestricted
Restricted
Total
Unrestricted
funds
funds
funds
2023
2023
2023
2022
£
£
£
£
Fundraising events
98,954
2,122
101,076
54,753
Shop income
1,361,640
-
1,361,640
1,210,882

TouchBase Glasgow

21,945
125
22,070
4,891
Other trading activities
1,482,539
2,247
1,484,786
1,270,526
6
Investments
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
Interest receivable
1,861
4,183
7
Other income
Unrestricted
Restricted
Total
Unrestricted
funds
funds
funds
2023
2023
2023
2022
£
£
£
£
Net gain on disposal of tangible fixed assets
1,180
300
1,480
2,000

VILD Services transfer agreement income

187,465
-
187,465
187,500

Sundry income

39,601
(1,300)
38,301
-
228,246
(1,000)
227,246
189,500
SENSE SCOTLAND
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 31 -
8
Raising funds
Unrestricted
Restricted
Total
Unrestricted
funds
funds
funds
2023
2023
2023
2022
£
£
£
£
Fundraising and publicity

Fundraising events

112,611
2,997
115,608
129,185
Staff costs
160,042
7,897
167,939
185,899
Support costs
37,980
-
37,980
48,553
Fundraising and publicity
310,633
10,894
321,527
363,637

Shops

Charity shops

571,943
-
571,943
478,896
Staff costs
602,041
-
602,041
612,140
Depreciation and impairment
10,246
-
10,246
8,035
Support costs
203,571
-
203,571
251,667

Shops

1,387,801
-
1,387,801
1,350,738
1,698,434
10,894
1,709,328
1,714,375
SENSE SCOTLAND
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 32 -
9
Charitable activities

Care Services

Day Services

Respite

Arts Programmes

Development

Other Activities

Total
2023
Total
2022
2023
2023
2023
2023
2023
2023
£
£
£
£
£
£
£
£
Staff costs
11,756,299
4,765,392
1,162,308
246,381
120,796
346,651
18,397,827
15,127,414
Depreciation and impairment
10,591
73,080
13,386
-
-
-
97,057
129,081

Other direct costs

163,442
600,114
138,360
33,807
14,715
35,922
986,360
997,444
11,930,332
5,438,586
1,314,054
280,188
135,511
382,573
19,481,244
16,253,939
Share of support costs (see note 10)
2,544,633
1,211,547
305,356
66,844
92,670
15,192
4,236,242
3,411,733
Share of governance costs (see note 10)
36,368
17,315
4,364
955
1,324
217
60,543
92,550
14,511,333
6,667,448
1,623,774
347,987
229,505
397,982
23,778,029
19,758,222
Analysis by fund
Unrestricted funds
14,514,765
6,651,528
1,619,931
160,134
155,591
51,460
23,153,409
19,308,913
Restricted funds
(3,432)
15,920
3,843
187,853
73,914
346,522
624,620
449,309
14,511,333
6,667,448
1,623,774
347,987
229,505
397,982
23,778,029
19,758,222
SENSE SCOTLAND
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
9
Charitable activities
(Continued)
- 33 -
For the year ended 31 March 2022

Care Services

Day Services

Respite

Arts Programmes

Development

Other Activities

Total
2022
£
£
£
£
£
£
£
Staff costs
10,618,312
3,030,388
949,283
204,583
229,393
95,455
15,127,414
Depreciation and impairment
81,817
38,487
8,777
-
-
-
129,081

Other direct costs

203,636
373,560
122,469
60,911
224,466
12,402
997,444
10,903,765
3,442,435
1,080,529
265,494
453,859
107,857
16,253,939
Share of support costs (see note 10)
2,289,029
750,083
242,132
41,166
63,030
26,293
3,411,733
Share of governance costs (see note 10)
61,938
20,290
6,550
1,192
1,815
765
92,550
13,254,732
4,212,808
1,329,211
307,852
518,704
134,915
19,758,222
Analysis by fund
Unrestricted funds
13,253,987
4,202,101
1,316,716
216,127
185,067
134,915
19,308,913
Restricted funds
745
10,707
12,495
91,725
333,637
-
449,309
13,254,732
4,212,808
1,329,211
307,852
518,704
134,915
19,758,222
SENSE SCOTLAND
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 34 -
10
Support costs
Support costs
Governance costs
2023
Support costs
Governance costs
2022
Basis of allocation
£
£
£
£
£
£
Staff costs
2,312,471
-
2,312,471
2,092,278
-
2,092,278
Depreciation
173,825
-
173,825
198,861
-
198,861

Finance

375,659
-
375,659
248,930
-
248,930

% of Staff

Information Technology

306,742
-
306,742
222,488
-
222,488

% of Staff

Human Resources

274,950
-
274,950
201,076
-
201,076

% of Staff

Management & Admin

844,254
-
844,254
424,243
-
424,243

% of Staff

Touchbase Glasgow

189,892
-
189,892
324,077
-
324,077
Audit fees
-
26,695
26,695
-
31,500
31,500
Governance
Legal and professional
-
33,848
33,848
-
61,050
61,050
Governance
4,477,793
60,543
4,538,336
3,711,953
92,550
3,804,503
Analysed between
Fundraising
37,980
-
37,980
48,553
-
48,553
Trading
203,571
-
203,571
251,667
-
251,667
Charitable activities
4,236,242
60,543
4,296,785
3,411,733
92,550
3,504,283
4,477,793
60,543
4,538,336
3,711,953
92,550
3,804,503
SENSE SCOTLAND
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 35 -
11
Auditor's remuneration
Fees payable to the charitable company's auditor and associates:
2023
2022
£
£
Audit of the charitable company's annual accounts
26,695
31,500
12
Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charitable company during the year, and £nil (2022 - £202) was paid to trustees for travelling expenses during the year.

13
Employees

The average monthly number of employees during the year was: 973 (2022 - 926).

 

The average FTE monthly number of employees during the year was:

2023
2022
Number
Number
Fundraising
6
6
Retail shops
27
31
Direct Services
535
500
Other Services
23
21
Support Services
47
47
Total
638
605
Employment costs
2023
2022
£
£
Wages and salaries
19,552,600
16,432,238
Social security costs
1,417,446
1,161,566
Other pension costs
510,232
423,927
21,480,278
18,017,731
The number of employees whose annual remuneration was more than £60,000 is as follows:
2023
2022
Number
Number
£60,000 - £70,000
1
-
£70,000- £80,000
2
2
£80,000- £90,000
1
1
SENSE SCOTLAND
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 36 -
14
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
£
£
In respect of:
Property, plant and equipment
-
165,000
15
Tangible fixed assets
Freehold land and buildings
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2022
9,259,574
476,869
244,675
9,981,118
Additions
15,350
77,647
145,510
238,507
Disposals
-
-
(67,871)
(67,871)
At 31 March 2023
9,274,924
554,516
322,314
10,151,754
Depreciation and impairment
At 1 April 2022
2,192,217
361,069
161,738
2,715,024
Depreciation charged in the year
181,781
54,088
45,259
281,128
Eliminated in respect of disposals
-
-
(67,871)
(67,871)
At 31 March 2023
2,373,998
415,157
139,126
2,928,281
Carrying amount
At 31 March 2023
6,900,926
139,359
183,188
7,223,473
At 31 March 2022
7,067,356
115,800
82,938
7,266,094

 

16
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,240,700
1,938,885
Other debtors
34,307
32,850
Prepayments and accrued income
566,551
453,300
1,841,558
2,425,035
SENSE SCOTLAND
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 37 -
17
Loans and overdrafts
2023
2022
£
£
Bank loans
715,741
771,297
Payable within one year
55,556
55,556
Payable after one year
660,185
715,741
Amounts included above which fall due after five years:
Payable by instalments
715,741
715,741

 

A loan was offered by Social Investment Scotland via the Third Sector Resilience Fund in 2020, on an interest rate of 0%, repayable over 4 years and 6 months beginning 30th November 2020.

 

A loan was offered by Social Investment Scotland via the Recovery and Resilience Fund in 2022, on an

interest rate of 3%, repayable over 9 years beginning 31st March 2022. Capital is not repayable until the 85th month (31st March 2029).

 

 

 

18
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
17
55,556
55,556
Other taxation and social security
284,080
327,160
Deferred income
21
219,330
465,737
Trade creditors
274,232
282,009
Other creditors
531,920
497,721
Accruals
1,279,630
891,264
2,644,748
2,519,447
19
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans
17
660,185
715,741
SENSE SCOTLAND
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 38 -
20
Provisions for liabilities
2023
2022
£
£
Retirement benefit obligations
-
3,606,444
-
3,606,444

The charity has been repaying its allocated deficit contributions in line with the agreement with the London Pension Fund Authority (LPFA) since the last triennial valuation in 2019. A payment of £75.205 (2022 - £72,556) was made during the year.

 

An updated valuation was performed in December 2022 by Barnett Waddingham.

 

The Actuarial Valuation report confirmed Sense Scotland had paid sufficient contributions to the pension fund to cover its liabilities in full and was therefore deemed to be discharged from its obligations to the fund in accordance with regulation 64. Formal agreement was reached by both parties, and legally executed, with the funding agreement being terminated on 31st December 2022. At that date Sense Scotland became an exiting employer in the fund.

 

The release of the pension obligation liability totalling £3,531,239 has been credited to the Statement of Financial Activity during the year in line with the above. As a result of the obligation being terminated, the Securities provided by Sense Scotland in relation to the pension liability were satisfied and discharged post year end.

SENSE SCOTLAND
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 39 -
21
Deferred income
2023
2022
£
£
Other deferred income
219,330
465,737

Deferred income is included in the financial statements as follows:

2023
2022
£
£
Deferred income is included within:
Current liabilities
219,330
465,737
Movements in the year:
Deferred income at 1 April 2022
465,737
275,431
Released from previous periods
(761,226)
(190,541)
Resources deferred in the year
514,819
380,847
Deferred income at 31 March 2023
219,330
465,737
SENSE SCOTLAND
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 40 -
22
Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
Movement in funds
Movement in funds
Balance at
1 April 2021
Incoming resources
Resources expended
Balance at
1 April 2022
Incoming resources
Resources expended
Balance at
31 March 2023
£
£
£
£
£
£
£
Direct Services
122,134
30,247
(23,946)
128,435
23,355
(13,792)
137,998
Other Services
129,021
462,759
(425,363)
166,417
527,826
(619,468)
74,775
Fundraising & Trading
9,683
2,225
-
11,908
2,805
(2,254)
12,459
260,838
495,231
(449,309)
306,760
553,986
(635,514)
225,232

Sense Scotland has the following restricted funds;

 

SENSE SCOTLAND
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 41 -
23
Analysis of net assets between funds
Unrestricted funds
Restricted funds
Total
Unrestricted funds
Restricted funds
Total
2023
2023
2023
2022
2022
2022
£
£
£
£
£
£
Fund balances at 31 March 2023 are represented by:
Tangible assets
7,223,473
-
7,223,473
7,266,094
-
7,266,094
Current assets/(liabilities)
2,876,371
225,232
3,101,603
3,452,948
306,760
3,759,708
Long term liabilities
(660,185)
-
(660,185)
(715,741)
-
(715,741)
Provisions and pensions
-
-
-
(3,606,444)
-
(3,606,444)
9,439,659
225,232
9,664,891
6,396,857
306,760
6,703,617
24
Financial commitments, guarantees and contingent liabilities

There were two legacies known (2022 - four), but not received, at the year end which were not included in these financial statements.

 

There were no grants or donations which the conditions were not met.

 

Securities and fixed charges to a maximum of £500,000 (2022 - £500,000) have been issued in respect of The Royal Bank of Scotland.

25
Operating lease commitments

At the reporting end date the charitable company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
450,304
527,541
Between two and five years
565,115
667,725
In over five years
106,228
152,359
1,121,647
1,347,625
SENSE SCOTLAND
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 42 -
26
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
335,400
271,920

The Trustees delegate day to day responsibility to the Directors of Sense Scotland. These are:

 

Angela Bonomy - Chief Executive Officer

David Donnelly - Director of Finance

Brian Murphy - Director of Operations

Joanne O'Donnell - Director of Planning, Development & Engagement

 

Transactions with related parties

During the year the charitable company entered into the following transactions with related parties:

Sense Scotland provides services to eight (2022 - eight) close family member of Trustees.

 

£430,026 of fees and allowances income (2022 - £406,200) was received in relation to these service users during the year

 

£49,406 (2022 - £48,602) was included within the debtor balance at 31st March 2023 in relation to transactions of this nature with Trustees.

 

27
Cash generated from operations
2023
2022
£
£
Surplus/(deficit) for the year
(569,965)
(219,203)
Adjustments for:
Investment income recognised in statement of financial activities
(1,861)
(4,183)
Gain on disposal of tangible fixed assets
(1,480)
(2,000)
Depreciation and impairment of tangible fixed assets
281,128
389,112
Difference between pension charge and cash contributions
(75,205)
(72,556)
Movements in working capital:
Decrease/(increase) in debtors
583,477
(274,813)
Increase in creditors
371,708
936,860
(Decrease) in deferred income
(246,407)
(288,674)
Cash generated from operations
341,395
464,543
SENSE SCOTLAND
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 43 -
28
Analysis of changes in net funds
At 1 April 2022
Cash flows
At 31 March 2023
£
£
£
Cash at bank and in hand
3,854,120
50,673
3,904,793
Loans falling due within one year
(55,556)
-
(55,556)
Loans falling due after more than one year
(715,741)
55,556
(660,185)
3,082,823
106,229
3,189,052
2023-03-312022-04-01falseCCH SoftwareiXBRL Review & Tag 2022.2SC1475702022-04-012023-03-31SC147570bus:Director12022-04-012023-03-31SC147570bus:Director22022-04-012023-03-31SC147570bus:Director32022-04-012023-03-31SC147570bus:Director42022-04-012023-03-31SC147570bus:Director52022-04-012023-03-31SC147570bus:Director62022-04-012023-03-31SC147570bus:Director72022-04-012023-03-31SC147570bus:Director82022-04-012023-03-31SC147570bus:Director92022-04-012023-03-31SC147570bus:Director102022-04-012023-03-31SC147570bus:Director112022-04-012023-03-31SC1475702023-03-31SC1475702022-03-31SC1475702021-04-012022-03-31SC147570bus:FRS1022022-04-012023-03-31SC147570bus:Audited2022-04-012023-03-31SC147570bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP