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 Charity's constitution, 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)” (second edition - October 2019) (effective from 1 January 2019).
Charitable Purposes
The objectives of Green Routes are:
The advancement of education and training for people with learning disabilities and others disadvantaged in the labour market.
The development of employment opportunities for people with learning disabilities and others disadvantaged in the labour market.
The advancement of sustainable development.
We aim to develop people with additional support needs or from backgrounds which disadvantage them in terms of employment, to enable them to realise their full potential and, where they have the capacity, to progress towards employability and independent living. Green Routes, with its horticultural base, is designed to meet the needs of students and provide them with a range of opportunities, including also rural and independent living skills. We deliver tangible outcomes of benefit to students and related to their individual needs – communication skills, self-esteem, and employability skills.
We have an excellent record of success, with a number of students now in part-time, paid employment.
In recognition of the resource and planning required to move from the established site to two new proposed sites with little, in one case, and no in the other case, infrastructure, a Strategy Day facilitated by an independent professional, was held at the start of the year. Implementation Plans were identified, scoped for required resources and board responsibilities allocated.
In line with the above strategy, a lease on the walled garden at Gargunnock House was negotiated with effect from 13th January 2022, and activities were progressively transferred there. A further area of land outside Gartmore was purchased, within budget, with the intention of developing it as the second Green Routes site.
The temporary arrangements made for utilities, buildings and sanitation, together with careful management of the students needs and expectations, meant that all Students successfully made the difficult transition from the Gartmore garden to the Gargunnock garden.
Students continue to work towards their Royal Caledonian Horticultural Grow and Learn Awards 1 and 2. Our Routes to Work has been extremely successful with fourteen students having been supported in work placements at local businesses. Nine of these students were offered part time paid employment. Four students are supported to volunteer out with Green Routes. All participants progressed in their social skills, confidence, independent working, and team working.
Development of the infrastructure – land and buildings
Work has continued on the paths at Gargunnock Garden. A new polytunnel has been erected to replace an old one beyond repair. Raised beds have been built.
A shed salvaged from the Gartmore Garden has been put up and is being used as a temporary office. Repairs to both the lintels over the gates have been carried out by Galbraith’s.
At Gargunnock, an architect has been engaged to design a building which will contain an office, a teaching and welfare room and a good standard of welfare facilities. He has obtained planning permission and expects to receive a building warrant shortly. Contractors have been identified, who have expressed an interest in tendering, and it is planned to invite tenders as soon as building warrant is confirmed. Architects have also been appointed to negotiate with the planning department of the Loch Lomond and Trossachs National Park to design facilities at Gartmore.
Planting, harvesting and selling crops
Bedding plants were grown from plug plants and raised in the polytunnels to be sold through the Trossachs Area Services, a stall at the local gala and from a sales table within the garden.
Supported volunteering training and links with schools and colleges
Green Routes continues to have a service level agreement with Stirling Council to offer both training and supported volunteer placements. Clackmannan Council and Glasgow Council took up places as in previous years. Pupils from three local High Schools have attended.
Development of the organisation – membership, meetings, volunteering and local community links
Relocation gave rise to new opportunities to recruit volunteers and promotional material was circulated in the new catchment area.
Membership of Green Routes is 33. Volunteers continue to work in the garden and supporting our students.
Work continued to consolidate established links and to investigate and forge new links with local businesses. This important work is central to the continued success of our Routes to Work project.
Finance and funding
Work continues to identify sources of funding. National Lottery funding has been secured for three years of salary of a manager for Gargunnock, and £50,000 as part of the capital works at Gartmore. Other smaller amounts of funding have also been secured for specific purposes. We have a pledge of £15k from the Hugh Fraser Foundation towards our Gargunnock building.
Registration with care inspectorate and liaison with local councils (as potential purchasers of services)
Green Routes achieved Care Inspectorate registration in February 2011 and continues to meet the high standards expected. Green Routes is an approved provider with Stirling Council.
Stirling Council has rated our Service Outcomes and Service levels, "Very Good". The Care inspectorate has rated our Service “5 Very Good”.
The surplus for the year was considerably up on the previous year, £207,478 (2022: £32,728). This was brought about in the main by an increase in student numbers giving a £100k increase in fee income, whilst being able to hold related revenue costs constant, together with a National Lottery Fund Grant of £92,500 and a very generous donation of £20,000. The grant was virtually unspent at year end as the post of Gargunnock Manager, which much of the grant is funding, was just being advertised at year end.
The bank and cash in hand was £405,643 (2022: £370,162) and the closing reserves are £593,033, £315,491 relating to unreserved funds, £190,000 to designated funds and £87,542 to reserved funds. During the period there was £185,209 of additions to tangible fixed assets, being the cost of buying land in Gartmore and initial Improvements to Gargunnock and to a lesser extent Gartmore. As detailed in Future Plans below, there is a future requirement for considerable capital funds. The project requirements are £682,000 after currently known grant funding. The Board have agreed to designate £190,000 from the unrestricted cash balance towards the capital project.
Future plans
Progress towards the move to two new premises as noted in the previous Trustee Annual Report has been satisfactory with the purchase of land for one site and a 5-year lease of suitable property for the second site being taken. Sourcing for the required additional management was put in place and the post successfully filled in May 2023. Funded by a NLF Grant as per our policy in previous report. Fees continue to fund revenue expenses and are predicted to do so in the future. The projected capital requirements to complete the two sites are Gargunnock of £140,000, and at Gartmore of £615,200. The Green Routes business plan (July 2023) predicts a capital shortfall of £486,898 after designated funding. This will be funded with future revenue surpluses and further grants.
Reserves policy
The first aim of the reserves policy remains the reduction of the risk of any possible harm of wellbeing of our vulnerable students, in so far as it is in our control. The continuity of service is dependent on specialist staff, volunteers, and suitable premises which are sustainable in the long term.
The Board further considers that 6 months operational costs should be reserved to reduce the risk of disruption to their service through periods of financial uncertainty and allow, if necessary, students to move onto other services with as little disruption as possible. The reserves have been built up from unrestricted income. The unrestricted reserves at the year end were £315,491 (2022: £385,555).
Going concern
After making appropriate enquiries, the trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Further details are given in the accounting policy 1.2.
Principal funding sources
Fees for service provision continue to be the principal funding source at £313,609, 72% of Income, Spread over three Council areas, the source is considered robust. Grants accounted for 21% and Donations 5.5%.
Risk management
Green Routes maintains a risk register and has a risk management policy. The risk register is reviewed at board meetings.
Governing document
Green Routes Stirling is a charitable incorporated association and the purposes and administration arrangements are set out in the Memorandum and Articles of Association. It constitutes a limited company, limited by guarantee, as defined by the Companies Act 1985.
Green Routes was initially established as an unincorporated association on 5th July 2007 and was registered as a company on 5th February 2008 and as a charity in March 2008.
Organisational structure
Green Routes Stirling has a Board of Directors who meet regularly and are responsible for the strategic direction and policy of the charity. The Development Manager is the only employee who is a member of the Board of Directors.
During the period of this report the work of the charity was entirely undertaken by the Board of Directors, the Development and Operations Managers, Horticultural Tutors, part-time Employability Manager, part-time Admin Assistant, part-time sessional staff, and volunteers.
Trustees
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:
Recruitment and appointment of trustees
The directors of the company are also charity trustees for the purpose of charity law. Under the requirements of the Memorandum and Articles of Association there shall be no more than twelve directors. Members at the annual general meeting elect directors and one third stand down each year. Directors standing down are eligible for re-election.
During the year, Pete Williams resigned as Chair but remains a director. He was succeeded as Chair by Margaret Miller from 28.04.22 – 06.08.22, and she was succeeded by John Marsh.
During the period, Roberta Downes and Joyce Kelly, the Treasurer, also resigned from the board.
Membership of the board was strengthened by the appointment of Angus Macgregor, an existing volunteer; Graham Scott, whose business Ben View Nursery provides placements for some of our students; Colin Strachan, whose construction industry background is invaluable in managing the procurement of the new buildings and facilities; and Rachel Craig, whose background is with a leading fund manager. Rachel Craig was appointed as Treasurer.
Induction and training of new trustees
Newly elected directors receive an induction pack to familiarise themselves with the work of the organisation, its policies and practices and current financial position.
A Strategy Day facilitated by an independent professional, was held at which the strategic activities were identified, and board responsibilities were allocated.
The Trustees, who are also the directors of Green Routes Stirling 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 Charity 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; 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 adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charity 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 Charity 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.
I report on the financial statements of the Charity for the year ended 31 March 2023, which are set out on pages 7 to 20.
The Charity’s Trustees, who are also the directors of Green Routes Stirling for the purposes of company law, are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investments (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). The Trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the 2006 Accounts Regulations does not apply. It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Act and to state whether particular matters have come to my attention.
My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. 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 seeks explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the financial statements.
In connection with my examination, no matter has come to my attention:
to keep accounting records in accordance with section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;
to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Green Routes Stirling is a private company limited by guarantee incorporated in Scotland. The registered office is The Walled Garden, Gargunnock House, Gargunnock, Stirling, FK8 3AZ.
The financial statements have been prepared in accordance with the Charity's constitution, the Companies Act 2006, 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 the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (second edition - October 2019) (effective as of 1 January 2019) . The Charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the Charity. 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.
At the time of approving the financial statements, the Trustees have reviewed the future funding and activities of the charity including the impact of Covid-19 pandemic. The charity has a reasonable expectation that the Charity 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.
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
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.
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Donations and similar income
Donations and similar income are included in the year in which they are receivable, which is when the charity becomes entitled to the resource and receipt is probable.
Grants receivable
Grants receivable are credited to the Statement of Financial Activities in the year in which they are receivable.
Membership income
Membership subscriptions are included in the year in which the charity becomes entitled to the resource.
Income from charitable activities
Income from charitable activities includes income from activities or where entitlement is subject to specific performance conditions is recognised as earned (as the related service is provided).
Investment income
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.
All expenditure is included on an accruals basis and is recognised when there is a legal or constructive obligation to pay for expenditure. All costs have been directly attributed to one of the functional categories of resources expended in the Statement of Financial Activities, the charity is not registered for VAT and accordingly expenditure is shown gross.
Costs of raising funds are costs incurred in attracting voluntary income, and those incurred in activities that raise funds.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Support costs are those costs incurred directly in support of expenditure on the objects of the Charity. Governance costs are those incurred in connection with administration of the Charity and compliance with constitutional and statutory requirements.
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation 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:
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:
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.
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.
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
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 Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Volunteers
A core group of 17 volunteers work with our students throughout the week and assist with the Volunteer Sundays and themed activities. This has not been accounted for as the value cannot be measured reliably.
In the application of the Charity’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.
Grants received
Volunteer expenses
Fundraising expenses
Small equipment
Rent and utilities
Insurance
Telephone
Postage, stationery and IT costs
Training and sundry expenses
Plants
Garden consumables
Building materials/fencing
Hire of equipment
Livestock
Equipment repairs
Mileage and mini bus expenses
Legal & professional fees
Accountancy fees
Governance costs includes payments to the independent examiner of £2,668 (2022- £2,442).
The average monthly number of employees during the year was:
The charity considers its key management personnel to comprise of the trustees and operations manager. The total employment benefits of the key management personnel (including pension contributions) are £77,752 (2022: £72,397).
This relates to the rental lease that ran from 01/11/17 to 31/10/22.
The Charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Charity in an independently administered fund.
The charge to profit or loss in respect of pension schemes was £7,670 (2022: £7,150).
Fund purposes
Percy Billington: restricted to the purchase of garden machinery
Stirling Council - No One Left Behind Fund: payment of employability staff salaries
National Lottery Community Fund - Improving Lives: restricted to set up costs for Gartmore site and employment of an employability manager. Transfers from this fund relate to the purchase of capital items.
The charities unrestricted funds are made up as follows:
Incoming resources
Resources expended
Incoming resources
Resources expended
Transfers
Purpose of funds
The property development fund has been setup to meet the costs of developing the infrastructure.
Unrestricted
Restricted
Unrestricted
Restricted
At the reporting end date the Charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
There were no disclosable related party transactions during the year (2022 - none), apart from the transactions disclosed in note 10.