REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
Report of the Trustees and |
Audited Financial Statements |
for the Year Ended 31 March 2023 |
for |
The Scottish Centre For Children With |
Motor Impairments |
REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
Report of the Trustees and |
Audited Financial Statements |
for the Year Ended 31 March 2023 |
for |
The Scottish Centre For Children With |
Motor Impairments |
The Scottish Centre For Children With |
Motor Impairments |
Contents of the Financial Statements |
for the Year Ended 31 March 2023 |
Page |
Report of the Trustees | 1 |
Report of the Independent Auditors | 8 |
Statement of Financial Activities | 12 |
Balance Sheet | 13 |
Cash Flow Statement | 14 |
Notes to the Cash Flow Statement | 15 |
Notes to the Financial Statements | 16 |
The Scottish Centre For Children With |
Motor Impairments (Registered number: SC129291) |
Report of the Trustees |
for the Year Ended 31 March 2023 |
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2023. The trustees have adopted the provisions of 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 |
Objectives and aims |
The charity's principal objectives, as set out in the Articles of Association, as summarised. The objects for which the charity is established include: the advancement of education, the advancement of health and the relief of those in need by provision of services in Scotland associated with the education, therapy, care, support for children and young people affected by a congenital or acquired neurological condition such as cerebral palsy and related conditions, brain injury or developmental dyspraxias (frequently described as the motor impairments or motor learning disorders), and referred to as "children and young people affected by cerebral palsy and related conditions" using progressive educational and therapeutic methods. This purpose includes the provision of education, information, support, advice and assistance as appropriate to the families of children and young people affected by cerebral palsy and related conditions. Key operational objectives of the SCCMI are to: |
- Ensure SCCMI's services are available throughout all parts of Scotland, and therefore children with neurological conditions are able to access and benefit from the Centre's services. |
- Deliver services which include direct and indirect engagement with children and families, and partnerships with other organisations involved with such children. |
- Offer professionally informed and objective views, advice, information, insight and support for young people and families. |
To achieve these objectives and to fulfill its national role, SCCMI provides services identified with each of these services, engaging with families, staff of other educational establishments and the NHS, with these services including: |
- Nursery, Primary and Secondary school classes |
- Early Intervention Programme incorporating children 0-3 |
- Access to Education Programme |
Public benefit |
The Charity meets the definition of public benefit entity under FRS 102. |
Volunteers |
In accordance with FRS 102 and the Charities SORP (FRS 102), the economic contribution of general volunteers is not recognised in the financial statements as this cannot be reliably measured. |
The Scottish Centre For Children With |
Motor Impairments (Registered number: SC129291) |
Report of the Trustees |
for the Year Ended 31 March 2023 |
STRATEGIC REPORT |
Achievement and performance |
Charitable activities |
Children, young people, young adults and families with whom the SCCMI engages are those affected by neurological conditions, across a wide range of the severity and complexity spectra, including some with complex and exceptional healthcare needs. |
As we navigate the post-COVID-19 pandemic era and confront a dynamic operating environment, we have adjusted our business maturity matrix objectives to more effectively reflect the SCCMI's long-term strategic goals. Being an independent provider, our dedication lies in providing improved support to both school pupils and non-school children through a range of therapy and intervention activities. We have been able to deliver a comprehensive and well-rounded approach to alternative and enriched support for children and families. |
As we progress we are confronted with the challenges arising from the emerging crisis of high inflation including an exponential increase energy prices and a highly competitive labour market We are fully aware that our services will be disproportionately impacted by these circumstances. Therefore, we are taking proactive steps to address and mitigate these challenges in the upcoming year. |
Key external pressures and drivers identified as impacting on the SCCMI are as follows: |
- The Scottish Government has expressed its intention to transition towards strategic commissioning of services for |
children with complex additional support needs by end March 2029 and removing the "block" grant to the |
SCCMI.. |
- Significant inflationary pressures on the wider economy including energy costs. |
- A highly competitive labour market. |
- Improved standards, guidance and expectations in relation to the health, care and learning for children |
- Meeting the policy expectations of: |
o Getting It Right For Every Child |
o UNCRC Incorporation |
o National Performance Framework |
o Additional Support for Learning review: action plan |
o The right help at the right time in the right place |
o The Scottish Attainment Challenge |
o National Improvement Framework - Schools |
o Supporting disabled children, young people and their families: guidance |
o National Neurodevelopmental Specification for Children and Young People: Principles and Standards of Care |
o Scottish Sensory Impairment Strategy |
o National Care Service |
o Rare disease action plan |
o Self directed support action plan |
o A fairer Scotland for disabled people: working for change |
In addition, the SCCMI are currently implementing a carefully planned growth programme aimed at enhancing our core skills (staff training), services (new services), and systems (new ways of working). These initiatives necessitate substantial investment and redesign efforts. The combined programmes have been accelerated and will be integrated into the 2023-24 Business Plan. As a result of these efforts, SCCMI is set to emerge as a stronger and more effective organisation, valued by children, families, carers, partners and staff. |
All financial commitments stemming from the Business Strategy have been accounted for in SCCMI's annual budget and long-term financial projections. |
In terms of direct service delivery, during 2022/23, SCCMI continued to explore innovations and new partnerships to review, redesign and develop service provision and research programmes. Our services included: |
The Scottish Centre For Children With |
Motor Impairments (Registered number: SC129291) |
Report of the Trustees |
for the Year Ended 31 March 2023 |
Early Learning/ Nursery, Primary and Secondary Schooling Learning Provision |
The Nursery, Primary and Secondary school provision continues to focus on provision of services for children with profound and multiple learning disabilities with life-threatening and or life-limiting conditions. Services are delivered by Teachers, Therapists, Nurses, Learning, Therapy and Care Practitioners and support staff. The programme addresses the learning, therapeutic and care needs of children 3 -18 years. |
Early Intervention Programme |
The early intervention programme supported over 40 children and their families, targeting children aged 0-3 years affected by a wide range of neurological conditions. The main goal was to empower parents and family members by providing them with tools and strategies to incorporate learning and therapeutic activities into their daily family life. This support aimed to aid their child in acquiring functional skills across all aspects of their development. |
The programme was delivered through a collaborative effort involving a highly specialised team of occupational therapists, physiotherapists, speech and language therapists, and early years practitioners. The delivery method included a mix of 1:1 sessions and small group activities, allowing for learning and practice opportunities. Various play activities were incorporated, along with access to our hydrotherapy pool, sensory room, and accessible outdoor playground to create a holistic experience. |
Additionally, to enhance the programme's offerings, we partnered with Nordoff Robbins to provide specialised support for music therapy and SIBS (For brothers and sisters of disabled children and adults) to provide parallel sessions for the brothers and sisters of the child experiencing disability. |
PODD - Pragmatic Organisation Dynamic Display |
We made a strategic commitment to our preferred communication tool and strategy known as PODD (Pragmatic Organisation Dynamic Display). The PODD system has the remarkable capability to cater to the requirements of the children and pupils at any stage of language development and with diverse abilities. It offers a variety of layouts tailored to accommodate different movement, vision, and language capabilities. Whether in the form of physical communication books or vocabularies for electronic devices, PODD has been made available to address a wide range of language levels, starting from the earliest words and progressing all the way to complex, adult-level language. |
These invaluable PODD resources have been specifically developed to aid teachers, therapists, and support staff in their efforts to facilitate communication using aided symbols like pictographs, graphic symbols, and complete written words. Consequently, therapists, teachers, and parents have been provided with the opportunity to enhance their skills through training, which in turn benefits the children, the centre, and the families and caregivers. |
Designing the first Fully Inclusive and Early Learning Integrated Child Nursery |
We engaged in discussions with a social enterprise organisation regarding the development of a potential nursery that would integrate services for children with complex additional support needs with those who have no recognised additional support needs. Together, we have successfully secured the expertise of Architect and Design Scotland to assess the feasibility of creating a specially designed space for this concept. Additionally, we are exploring the option of reconfiguring existing available space to accommodate the envisioned nursery. |
As an organisation, we are dedicated to the principles of equality and inclusion and participation, and we are eagerly anticipating the development of the partnership and the designs. We are excited to witness how these efforts will be utilised to advocate and campaign for funds to support our ambitions. |
Covid 19 |
Finally, although no longer living with restrictive Covid-19 conditions we have consistently implemented strong infection prevention procedures, resulting in no internal transmission of Covid-19. We continue to be informed by Scottish Government guidance on infection prevention in relation to health and care facilities. We are extremely thankful for the support extended by the Scottish Government, which addressed the non-recurrent financial implications of Covid-19 during the 21-22 financial year. This support has had a lasting impact, making our transition back to routine operations relatively seamless. |
The Scottish Centre For Children With |
Motor Impairments (Registered number: SC129291) |
Report of the Trustees |
for the Year Ended 31 March 2023 |
Extraordinary Expenditure and Financial Resilience |
The Covid-19 pandemic, 2020 -2022, saw reduced access to some specialist materials; training and development for staff; and reduced opportunity to invest in the development of Centre infrastructure. During this time the Centre accumulated the resource that would have been invested during these two years, investing this in 2022/23. This readjustment of investment in 2022/23 can be seen in extraordinary high levels of expenditure on teaching materials, training, professional fees, travel, repairs, plant and machinery. This non-recurrent high level of expenditure along with unanticipated higher energy costs has resulted in a modest acceptable loss for the year. To mitigate the recurrent element of this, along with high levels of general inflation, we have adjusted our fees upward. Such fluctuations in revenue and expenses are normal and it is worth noting that we maintain robust cash reserves and a healthy balance sheet. |
Financial review |
Financial position |
The financial statements show the overall position of the charity as at 31 March 2023, its incoming resources and the application of these resources for the year ended that date. |
Income received during the year totalled £2,289,381 (2022 £2,200,974) and expenditure totalled £2,546,583 (2022 £2,181,302). The charity has generated a loss of £257,202 (2022: surplus £19,672), excluding the net gain on investments of £105,000. |
The multi-employer defined benefit pension plan, recognised in the Financial Statements within the Pension Fund, reflected an asset of £2,527,000 (2022 assets £606,000) as at 31 March 2023. This has no direct impact on the charity as the underlying assets are held separately from the assets of the charity in independently administered funds. Further details on the accounting policy can be found in note 1. |
Principal funding sources |
The principal funding sources are grant monies and placement fee income received from supporting Scottish Government departments. |
Investment policy and objectives |
Only short-term investment opportunities arise as such funds are required for working capital purposes and a low risk policy is adopted. Accordingly, surplus working capital funds are placed on an interest bearing bank deposit which offers instant access. |
Reserves policy |
The Scottish Government has confirmed that the charity has the power to create reserves from its restricted revenue income (other than grant income which is excluded under the Special Schools (Scotland) Grant Regulations 1990). |
The unrestricted Development Fund represents the reserves available for general purposes of £212,343. Designated funds includes the Pension Fund and the Legacy Fund. Pension Fund reflects the movement of the pension funds in the year and movement is determined by the Actuarial Report with closing reserves reflected of £2,527,000. The Legacy Fund totals £75,000 and can be utilised at the discretion of the Trustees. |
Restricted funds, which are not available for general purposes, total £3,184,140. This figure includes the net book value of fixed assets of £1,813,520 and investment property of £675,000 which would only be distributable when realised on the sale of the assets. Other restricted reserves will be distributable when attaching conditions have been met. |
Within the context of the prospect of reducing income streams, including confirmation of reduced recurrent grants, the age of the Craighalbert campus and anticipated ongoing maintenance costs, reserves are determined by the Board to be a strategically sensible level to enable the short term security of the ongoing operation of the Centre. |
Going concern |
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. There are sufficient cash resources and reserves at the year end. |
The Scottish Centre For Children With |
Motor Impairments (Registered number: SC129291) |
Report of the Trustees |
for the Year Ended 31 March 2023 |
STRATEGIC REPORT |
Financial review |
Financial and risk management |
The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity. The main risk faced is continued uncertainty around local government funding streams and lack of viable alternatives. Trustees are satisfied that systems and procedures are in place to mitigate the exposure to the major risks. Risk assessments are made on a regular basis. |
Principal risks and uncertainties |
Trustees are satisfied that systems are in place to mitigate exposure to major risks. These include performance management, a financial scheme of delegation; an identified strategic mission and vision; an appropriately qualified and experienced staffing profile; comprehensive CPD; robust policies, procedures and staff induction; externally validated high quality service delivery. The principal risks and uncertainties are identified as the impact of the Doran Review on government funding. The trustees perform periodic risk assessments, identifying possible risks and reviewing the systems and procedures in place to mitigate them. Having performed this assessment, the Trustees are satisfied with the systems and procedures in place. |
Future plans |
Objective 1 |
SCCMI requires to improve financial resilience to support long term business continuity; short term resilience to manage fluctuations in demand; and elimination of reliance on Scottish Government GASS grant by March 2029. |
Objective 2 |
Increasing the number of medium to long-term strategic partnerships will strengthen organisational resilience, build reputation and visibility. It also has the potential to increase financial reliance and support and increase access skills out with the Centre while supporting retention of workforce. |
Objective 3 |
Increase the skills, knowledge, experience, participation, health and loyalty of our team while enhancing support for wellbeing with the aim of increasing, creativity, innovation, efficiency, effectiveness, quality, retention and job satisfaction. |
Objective 4: Increase Community Benefit Contribution |
It is our duty as a GASS to provide community benefit, we believe our resources in terms of estate, equipment, skills, opportunities for experience and opportunities for employment are not being utilised to best effect to provide community benefit. |
Objective 5: Develop and Introduce an Innovation and Practice Development Strategy |
The centre requires an Innovation and Practice Development Strategy to set out its research and development plans for the coming years along with service development and improvement plans. |
Objective 6: Develop and Introduce Capital Development Plan |
The Centre requires significant investment and capital works to support the transformation of a 30 year old campus to a first class national learning, care and therapy resource. |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Governing document |
SCCMI is a company limited by guarantee, incorporated in Scotland on 14 January 1991, company number SC129291 and registered as a Scottish charity on 14 January 1991, charity number SC008428. The charity was formed under a Memorandum & Articles of Association which establishes its objectives and powers. |
Recruitment and appointment of new trustees |
The Trustees appoint new Trustees in accordance with the terms of the Articles of Association. Trustees are appointed from a range of relevant backgrounds and a governance policy exists to support the Board's operation. All Trustees are required to become members of the Protecting Vulnerable Groups Scheme (PVG). |
The Scottish Centre For Children With |
Motor Impairments (Registered number: SC129291) |
Report of the Trustees |
for the Year Ended 31 March 2023 |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Organisational structure |
The management of the charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association. The Trustees manage the charity collectively and normally, at a minimum, meets 3 times per year. The Chief Executive is appointed by the Board to manage the day to day operations. The Chief Executive has delegated authority for operational matters including: finance, employment, property and the education and therapy, care and well being of those engaging with SCCMI's services. |
Key management remuneration |
Key management personnel are entitled to remuneration under article 4.3a of the Memorandum and Articles of Association. This article also provides that no Director or Trustee of the charity shall be entitled to any remuneration. |
REFERENCE AND ADMINISTRATIVE DETAILS |
Registered Company number |
Registered Charity number |
Registered office |
Trustees |
Company Secretary |
Auditors |
Statutory Auditors |
Chartered Accountants |
147 Bath Street |
Glasgow |
G2 4SN |
Solicitors |
Harper Macleod LLP |
The Ca'd'oro |
45 Gordon Street |
Glasgow |
G1 3PS |
Brodies LLP |
15 Atholl Crescent |
Edinburgh |
EH3 8HA |
The Scottish Centre For Children With |
Motor Impairments (Registered number: SC129291) |
Report of the Trustees |
for the Year Ended 31 March 2023 |
REFERENCE AND ADMINISTRATIVE DETAILS |
Chief Executive |
B Fraser |
TRUSTEES' RESPONSIBILITY STATEMENT |
The trustees (who are also the directors of The Scottish Centre For Children With Motor Impairments for the purposes of company law) are responsible for preparing the Report of the Trustees 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 period. In preparing those financial statements, the trustees are required to |
- | select suitable accounting policies and then apply them consistently; |
- | observe the methods and principles in the Charity SORP; |
- | make judgements and estimates that are reasonable and prudent; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. |
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with 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. |
Auditors |
The Auditors, Gillespie & Anderson, Chartered Accountants, Statutory Auditors, have expressed a willingness to continue in office. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the Trustees are aware, there is no relevant audit information, as defined by section 418 of the Companies Act 2006 of which the charity's auditors are unaware, and each Trustee has taken all the steps that they ought to have taken as a Trustee in order to make themselves aware of any relevant audit information and to establish that they charity's auditors are aware of that information. |
Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on |
Report of the Independent Auditors to the Trustees and Members of |
The Scottish Centre For Children With |
Motor Impairments |
Opinion |
We have audited the financial statements of The Scottish Centre For Children With Motor Impairments (the 'charitable company') for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (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. |
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 Auditors' 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 trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Report of the Trustees has been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Trustees and Members of |
The Scottish Centre For Children With |
Motor Impairments |
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 Report of the Trustees. |
We have nothing to report in respect of the following matters where 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 Trustees' Responsibilities Statement, the trustees 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. |
Report of the Independent Auditors to the Trustees and Members of |
The Scottish Centre For Children With |
Motor Impairments |
Our responsibilities for the audit of the financial statements |
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 a Report of the Independent Auditors 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: |
Our approach and assessment were as follows: |
The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. |
Enquire of management and review supporting documentation concerning the charity's policies and procedures relating to: |
- identify, evaluate and comply with laws and regulations and their awareness of any instances of non-compliance; |
- detect and respond to the risks of irregularities, fraud and their knowledge of any actual, suspected or alleged fraud; |
- internal controls established to mitigate risks related to, unusual items, fraud or non-compliance with laws and regulations. |
Obtain an understanding of the legal and regulatory framework that the charity operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the charity. The key laws and regulations we considered in this context included the Charities and Trustee Investment (Scotland) Act 2005, Charities Accounts (Scotland) Regulations 2006, Companies Act 2006 and the applicable Statement of Recommended Practice (SORP) together with health and safety regulations, employment legislation and data protection legislation. |
Discuss among the engagement team how and where irregularities might occur in the financial statements and potential indicators of fraud. Identify potential audit risks in relation to income recognition, authorisation of expenses and possible management override of controls. |
Communicate relevant identified laws and regulations and potential irregularity risks to all engagement team members and remain alert to any indications of unusual items, fraud or non-compliance with laws and regulations throughout the audit. |
Review all Minutes of Meetings of those charged with governance, Reports and correspondence with HMRC and legal advisers. |
Perform audit testing which covers the audit assumptions of: existence, completeness, rights and obligations, accuracy and valuation in respect of income recognition and expenditure incurred. |
Evaluate the overall presentation, structure and content of the financial statements, including disclosures, by performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to an irregularity or fraud. Agree financial statement disclosures to underlying documents. |
Assess whether the financial statements represent the underlying transactions and events in a manner that achieves compliance with relevant laws and regulations. |
To address the risk of fraud through management override of controls and management bias, we: assess the rationale behind significant or unusual transactions identified through audit testing and assess where management judgement used in determining accounting estimates were indicative of potential bias. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence. |
Report of the Independent Auditors to the Trustees and Members of |
The Scottish Centre For Children With |
Motor Impairments |
Material misstatements that arise due to fraud can be harder to detect that those that arise from error as they may involve deliberate concealment or collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors. |
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 charitable company'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 the trustees those matters we are required to state to them in an auditors' 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 and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditors |
Chartered Accountants |
Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 |
Glasgow |
G2 4SN |
The Scottish Centre For Children With |
Motor Impairments |
Statement of Financial Activities |
(Incorporating an Income and Expenditure Account) |
for the Year Ended 31 March 2023 |
2023 | 2022 |
Unrestricted | Restricted | Total | Total |
funds | funds | funds | funds |
Notes | £ | £ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies | 2 | - | 80,319 | 80,319 | 45,394 |
Charitable activities | 5 |
Main charitable activities | - | 2,178,377 | 2,178,377 | 2,137,879 |
Other trading activities | 3 | - | 5,943 | 5,943 | 1,957 |
Investment income | 4 | 2,177 | 22,565 | 24,742 | 14,995 |
Other income | - | - | - | 749 |
Total |
EXPENDITURE ON |
Raising funds | 6 | (14,000 | ) | 671 | (13,329 | ) | 3,281 |
Charitable activities | 7 |
Main charitable activities | 226,387 | 2,333,525 | 2,559,912 | 2,178,021 |
Total |
Net gains on investments | 105,000 | 105,000 | - |
NET INCOME/(EXPENDITURE) | ( |
) | ( |
) |
Transfers between funds | 19 | (931 | ) | 931 | - | - |
Other recognised gains/(losses) |
Actuarial gains on defined benefit schemes | 2,123,000 | - | 2,123,000 | 881,000 |
Net movement in funds |
RECONCILIATION OF FUNDS |
Total funds brought forward |
TOTAL FUNDS CARRIED FORWARD | 4,027,685 |
The Scottish Centre For Children With |
Motor Impairments (Registered number: SC129291) |
Balance Sheet |
31 March 2023 |
2023 | 2022 |
Unrestricted | Restricted | Total | Total |
funds | funds | funds | funds |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 14 | - | 1,813,521 | 1,813,521 | 1,769,366 |
Investment property | 15 | - | 675,000 | 675,000 | 570,000 |
- | 2,488,521 | 2,488,521 | 2,339,366 |
CURRENT ASSETS |
Debtors | 16 | 229,522 | - | 229,522 | 195,219 |
Cash at bank and in hand | 153,020 | 696,005 | 849,025 | 971,921 |
382,542 | 696,005 | 1,078,547 | 1,167,140 |
CREDITORS |
Amounts falling due within one year | 17 | (95,199 | ) | (386 | ) | (95,585 | ) | (84,821 | ) |
NET CURRENT ASSETS | 287,343 | 695,619 | 982,962 | 1,082,319 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
287,343 |
3,184,140 |
3,471,483 |
3,421,685 |
PENSION ASSET | 20 | 2,527,000 | - | 2,527,000 | 606,000 |
NET ASSETS |
FUNDS | 19 |
Unrestricted funds | 2,814,343 | 902,486 |
Restricted funds | 3,184,140 | 3,125,199 |
TOTAL FUNDS | 5,998,483 | 4,027,685 |
The financial statements were approved by the Board of Trustees and authorised for issue on |
The Scottish Centre For Children With |
Motor Impairments |
Cash Flow Statement |
for the Year Ended 31 March 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (65,344 | ) | 347,968 |
Net cash (used in)/provided by operating activities | (65,344 | ) | 347,968 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (166,174 | ) | (39,782 | ) |
Sale of tangible fixed assets | - | 750 |
Sale of fixed asset investments | 105,000 | - |
Interest received | 3,622 | 75 |
Net cash used in investing activities | (57,552 | ) | (38,957 | ) |
Change in cash and cash equivalents in the reporting period |
(122,896 |
) |
309,011 |
Cash and cash equivalents at the beginning of the reporting period |
971,921 |
662,910 |
Cash and cash equivalents at the end of the reporting period |
849,025 |
971,921 |
The Scottish Centre For Children With |
Motor Impairments |
Notes to the Cash Flow Statement |
for the Year Ended 31 March 2023 |
1. | RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES |
2023 | 2022 |
£ | £ |
Net (expenditure)/income for the reporting period (as per the Statement of Financial Activities) |
(152,202 |
) |
19,672 |
Adjustments for: |
Depreciation charges | 122,019 | 109,128 |
Losses on investments | (105,000 | ) | - |
Profit on disposal of fixed assets | - | (749 | ) |
Interest received | (3,622 | ) | (75 | ) |
Increase in debtors | (34,303 | ) | (47,331 | ) |
Increase in creditors | 10,764 | 65,322 |
Difference between pension charge and cash contributions | 97,000 | 202,001 |
Net cash (used in)/provided by operations | (65,344 | ) | 347,968 |
2. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.4.22 | Cash flow | At 31.3.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 971,921 | (122,896 | ) | 849,025 |
971,921 | (122,896 | ) | 849,025 |
Total | 971,921 | (122,896 | ) | 849,025 |
The Scottish Centre For Children With |
Motor Impairments |
Notes to the Financial Statements |
for the Year Ended 31 March 2023 |
1. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets. |
Presentation currency |
The financial statements are presented in sterling which is the functional currency of the charity. |
Going concern |
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. There are sufficient cash resources and reserves at the year end. |
Critical accounting judgements and key sources of estimation uncertainty |
The Trustees have made judgements, estimates and assumptions that affect the amounts reported within the financial statements during the year. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. The Trustees estimates, assumptions and judgements that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the financial statements are addressed and detail is provided in the associated notes. |
Income |
All income is recognised when the charity is entitled to the income, it is probable that the income will be received and the amount can be measured reliably. The following specific policies are applied to particular categories of income: |
Donations and legacies consists of donations, grants and legacies. Donations are recognised when the charity is entitled to the income, receipt of the income is probable and the amount can be measured reliably. Income from grants, not subject to performance related conditions, is recognised when the charity has entitlement to the funds, it is probable that the income will be received, the amount can be measured reliability and it is not deferred. Income from government grants is recognised when received as the accrual model is not permitted by the Statement of Recommended Practice. Legacy income is recognised when it is probable that it will be received. |
Charitable activities income is received from the sale of goods and services offered as part of the charitable activities of the charity. Income from government grants and other performance related grants is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received, the amount can be measured reliability. |
Other trading activities income is received from; fund raising events, canteen and letting of property for functional use by the charity but temporarily surplus to operational requirements. Expected return on pension assets is included as per the actuarial valuation at Balance Sheet date. |
Investment income is included when receipt is probable and the amount can be measured reliably. Income included is bank account interest received and rental income from properties which are owned by the charity which are held for capital appreciation and rental income. |
Other income consists of income received which are outwith donations, legacies, charitable activities and other trading activities and include insurance claims.. |
The Scottish Centre For Children With |
Motor Impairments |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
1. | ACCOUNTING POLICIES - continued |
Expenditure |
Expenditure has been classified under the headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of the resources. Expenditure is recognised on an accrual basis when a legal liability is incurred, payment of the liability is probable and the amount can be measured reliably. The amount includes any VAT which cannot be fully recovered. VAT is reported as part of the expenditure to which it relates. |
Raising funds includes all expenditure incurred by the charity to raise funds for its charitable purposes and includes costs of all fundraising activities, events and non-charitable trading. Interest on pension scheme liabilities is included as per the actuarial valuation at Balance Sheet date. |
Charitable activities comprise all resources expended undertaking work to meet the charity's charitable objectives. Such costs include the direct costs of charitable activities approved by the charity and all support costs relating to these activities. Governance costs include direct resources expended in the general running of the charity and are primarily associated with constitutional and statutory requirements. These costs are allocated entirely to charitable activities. |
Allocation and apportionment of costs |
Support costs are allocated wholly to charitable activities. Whilst the Trustees recognise that a small part of some items of expenditure included in support costs do relate to indirect governance costs, they are of the opinion that the time and costs involved in performing such an analysis outweigh the potential benefits arising from any such work. |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Freehold property | - | at varying rates on cost |
Plant and machinery | - | 20% on cost |
All tangible fixed assets having a value to the charity greater than one year, other than those acquired for specific purposes, are capitalised. It is the charity's policy to capitalise all relevant expenditure greater than £1,000. |
Investment property |
Investment property is initially measured at cost and subsequently measured at fair value at the year end. Realised and unrealised gains and losses, including those arising on revaluation are included in the Statement of Financial Activities in the year in which they arise. No depreciation is provided on investment property in line with the Charities SORP (FRS 102). |
Taxation |
The charity is exempt from corporation tax on its charitable activities. |
Fund accounting |
Funds are classified as either unrestricted funds or restricted funds, defined as follows: |
Unrestricted funds are expendable at the discretion of the Trustees in furtherance of the objects of the charity. If parts of the unrestricted funds are earmarked at the discretion of the Trustees for a particular purpose, they are designated as a separate fund. This designation has an administrative purpose only and does not legally restrict the Trustees' discretion to apply the funds. |
Restricted funds are funds subject to specific requirements as to their use which may be declared by the donor or with their authority or created through legal process, but still within the wider objects of the charity. |
The Scottish Centre For Children With |
Motor Impairments |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
1. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The charity operates a three multi-employer defined benefit pension plans. In accordance with FRS 102, they are accounted for as defined contribution schemes as there is insufficient information available to allow for the plans to be accounted for as defined benefit plans. The underlying assets are held separately from the assets of the charity in independently administered funds. Full actuarial valuations are conducted by qualified independent actuaries using the projected unit method. Where the charity has entered into an agreement with the multi-employer plan to fund the deficit, a liability is recognised. Where a surplus arises at the year end, no surplus is recognised as the charity has no control over contribution refunds or reductions in future contributions payable. |
Financial instruments |
The charity has no complex financial instruments but does hold basic financial instruments of: cash at bank, debtors and creditors. |
Cash and cash equivalents comprise cash at bank and on hand, foreign currency on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. A bank overdraft would be shown within current liabilities. |
Debtors are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less losses for bad debts except where the effect of discounting would be immaterial. In such cases, debtors are stated at cost less losses for bad debts. |
Creditors are initially recognised at fair value and subsequently measured at amortised cost using the effective interest rate unless the effect of discounting would be immaterial. In such cases, creditors are stated at cost. |
Employment benefits |
The total cost of employee benefits to which employees have become entitled as a result of service rendered to the entity during the reporting period are recognised and charged to the profit and loss account in the period to which they relate. |
Volunteers |
In accordance with FRS 102 and Charities SORP (FRS 102), the economic contribution of general volunteers is not recognised in financial statements due to inaccurate measurement bases. |
Provision for liabilities |
A provision is initially recognised when there is an obligation at the balance sheet date as the result of a past event, it is probable that there will be the transfer of funds in settlement and the amount of the obligation can be estimated reliably. The provision is subsequently measured by placing a charge against the provision only for expenditure for which the provision was originally recognised. |
The Scottish Centre For Children With |
Motor Impairments |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
2. | DONATIONS AND LEGACIES |
2023 | 2022 |
£ | £ |
Donations | 79,906 | 44,652 |
Subscriptions | 50 | 30 |
Gift aid | 363 | 712 |
3. | OTHER TRADING ACTIVITIES |
2023 | 2022 |
£ | £ |
Rents received | 5,583 | 1,726 |
Catering | 360 | 231 |
5,943 | 1,957 |
4. | INVESTMENT INCOME |
2023 | 2022 |
£ | £ |
Investment property rent received | 21,120 | 14,920 |
Deposit account interest | 3,622 | 75 |
5. | INCOME FROM CHARITABLE ACTIVITIES |
2023 | 2022 |
Activity | £ | £ |
Grants | Main charitable activities | 962,480 | 1,171,314 |
Fees day pupils | Main charitable activities | 1,215,897 | 966,565 |
2,178,377 | 2,137,879 |
Grants received, included in the above, are as follows: |
2023 | 2022 |
£ | £ |
Scottish Government for Learning & Development | 751,811 | 765,811 |
Scottish Government Pupil Equity Fund | 25,075 | 17,704 |
Scottish Government | 14,000 | 2,760 |
North Lanarkshire Council | 21,844 | 17,686 |
Scottish Government Impact of Covid 19 | - | 339,363 |
Corra Foundation | 28,350 | 27,000 |
Duke of Edinburgh Award | - | 990 |
The Hospital Saturday Fund | 2,000 | - |
Bank of Scotland Foundation | 77,400 | - |
HSBC | 42,000 | - |
962,480 | 1,171,314 |
The Scottish Centre For Children With |
Motor Impairments |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
6. | RAISING FUNDS |
Raising donations and legacies |
2023 | 2022 |
£ | £ |
Fundraising expenses | 671 | 281 |
Interest payable and similar charges | (14,000 | ) | 3,000 |
(13,329 | ) | 3,281 |
7. | CHARITABLE ACTIVITIES COSTS |
Direct | Support |
Costs (see | costs (see |
note 8) | note 9) | Totals |
£ | £ | £ |
Main charitable activities | 1,291,541 | 1,268,371 | 2,559,912 |
8. | DIRECT COSTS OF CHARITABLE ACTIVITIES |
2023 | 2022 |
£ | £ |
Staff costs | 1,170,525 | 1,054,273 |
Teaching materials | 29,563 | 5,434 |
Teaching training | 50,428 | 38,205 |
Consumables and repairs | 41,025 | 30,410 |
1,291,541 | 1,128,322 |
9. | SUPPORT COSTS |
Governance |
Management | costs | Totals |
£ | £ | £ |
Main charitable activities | 1,256,533 | 11,838 | 1,268,371 |
Support costs, included in the above, are as follows: |
Management |
2023 | 2022 |
Main |
charitable | Total |
activities | activities |
£ | £ |
Wages | 545,266 | 435,558 |
Social security | 58,104 | 48,983 |
Pensions | 108,687 | 90,601 |
Other operating leases | 8,011 | 3,036 |
Rates and water | 17,342 | 13,417 |
Insurance | 35,227 | 26,955 |
Light and heat | 120,777 | 51,056 |
Telephone | 12,851 | 17,663 |
Postage and stationery | 6,527 | 10,560 |
Carried forward | 912,792 | 697,829 |
The Scottish Centre For Children With |
Motor Impairments |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
9. | SUPPORT COSTS - continued |
Management - continued |
2023 | 2022 |
Main |
charitable | Total |
activities | activities |
£ | £ |
Brought forward | 912,792 | 697,829 |
Sundries | 10,325 | 37,733 |
Food purchases | 18,798 | 8,797 |
Cleaning | 8,058 | 6,480 |
Repairs | 86,277 | 135,088 |
Travel | 27,612 | 3,483 |
Subscriptions and licences | 15,190 | 12,847 |
Recruitment | 12,255 | 9,049 |
Computer expenses | 7,573 | 4,206 |
Professional fees | 35,478 | 14,498 |
Bank charges | 156 | 409 |
Depreciation of tangible and heritage assets | 122,019 | 109,128 |
1,256,533 | 1,039,547 |
Governance costs |
2023 | 2022 |
Main |
charitable | Total |
activities | activities |
£ | £ |
Auditors' remuneration | 8,340 | 7,200 |
Payroll fees | 3,498 | 2,952 |
11,838 | 10,152 |
10. | NET INCOME/(EXPENDITURE) |
Net income/(expenditure) is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Auditors' remuneration | 8,340 | 7,200 |
Payroll fees | 3,498 | 2,952 |
Depreciation - owned assets | 122,019 | 109,129 |
Other operating leases | 8,011 | 3,036 |
Surplus on disposal of fixed assets | - | (749 | ) |
Revaluation gain on fixed assets investment | (105,000 | ) | - |
The Scottish Centre For Children With |
Motor Impairments |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
11. | TRUSTEES' REMUNERATION AND BENEFITS |
There were no trustees' remuneration or other benefits for the year ended 31 March 2023 nor for the year ended 31 March 2022. |
Trustees' expenses |
There were no expenses paid to Trustees during the year (2022 nil). |
12. | STAFF COSTS |
2023 | 2022 |
£ | £ |
Wages and salaries | 1,287,990 | 1,062,671 |
Social security costs | 128,494 | 100,654 |
Other pension costs | 466,098 | 466,090 |
1,882,582 | 1,629,415 |
The average monthly number of employees during the year was as follows: |
2023 | 2022 |
Administration | 12 | 11 |
Teaching staff | 32 | 28 |
Non-teaching staff | 5 | 5 |
The number of employees whose employee benefits exceeded £60,000 was: |
2023 | 2022 |
£60,001 - £70,000 | 2 | 2 |
£70,001 - £80,000 | - | 1 |
2 | 3 |
13. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES |
Unrestricted | Restricted | Total |
funds | funds | funds |
£ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies | - | 45,394 | 45,394 |
Charitable activities |
Main charitable activities | - | 2,137,879 | 2,137,879 |
Other trading activities | - | 1,957 | 1,957 |
Investment income | 36 | 14,959 | 14,995 |
Other income | - | 749 | 749 |
Total | 36 | 2,200,938 |
EXPENDITURE ON |
Raising funds | 3,000 | 281 | 3,281 |
The Scottish Centre For Children With |
Motor Impairments |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
13. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued |
Unrestricted | Restricted | Total |
funds | funds | funds |
£ | £ | £ |
Charitable activities |
Main charitable activities | 199,000 | 1,979,021 | 2,178,021 |
Total | 202,000 | 1,979,302 |
NET INCOME/(EXPENDITURE) | (201,964 | ) | 221,636 |
Other recognised gains/(losses) |
Actuarial gains on defined benefit schemes | 881,000 | - | 881,000 |
Net movement in funds | 679,036 | 221,636 |
RECONCILIATION OF FUNDS |
Total funds brought forward | 223,450 | 2,903,563 |
TOTAL FUNDS CARRIED FORWARD | 902,486 | 3,125,199 | 4,027,685 |
14. | TANGIBLE FIXED ASSETS |
Freehold | Plant and |
property | machinery | Totals |
£ | £ | £ |
COST |
At 1 April 2022 | 2,968,089 | 232,715 | 3,200,804 |
Additions | 43,582 | 122,592 | 166,174 |
Disposals | (63,766 | ) | (70,569 | ) | (134,335 | ) |
At 31 March 2023 | 2,947,905 | 284,738 | 3,232,643 |
DEPRECIATION |
At 1 April 2022 | 1,280,101 | 151,337 | 1,431,438 |
Charge for year | 68,891 | 53,128 | 122,019 |
Eliminated on disposal | (63,766 | ) | (70,569 | ) | (134,335 | ) |
At 31 March 2023 | 1,285,226 | 133,896 | 1,419,122 |
NET BOOK VALUE |
At 31 March 2023 | 1,662,679 | 150,842 | 1,813,521 |
At 31 March 2022 | 1,687,988 | 81,378 | 1,769,366 |
The Scottish Centre For Children With |
Motor Impairments |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
15. | INVESTMENT PROPERTY |
£ |
FAIR VALUE |
At 1 April 2022 | 570,000 |
Revaluation | 105,000 |
At 31 March 2023 | 675,000 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
Properties were valued on an open market basis in 21 March 2023 by Shepherd Chartered Surveyors. In the opinion of the trustees these valuations have not materially changed at the balance sheet date. |
Fair value at 31 March 2023 is represented by: |
£ |
Valuation in 2020 | 366,950 |
Valuation in 2023 | 105,000 |
Cost | 203,050 |
675,000 |
16. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Other debtors | 168,140 | 156,345 |
Prepayments | 61,382 | 38,874 |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Accrued expenses | 95,585 | 84,821 |
Deferred Income | 2022 | 2021 |
£ | £ |
As at 1 April 2022 | 29,769 | 6,608 |
Amounts released during the year | (29,769 | ) | (6,608 | ) |
Amount deferred in current year | - | 29,769 |
.............. | .............. |
As at 31 March 2023 | - | 29,769 |
======= | ======= |
Deferred income relates to grant income received in the year to 31 March 2022 but relates to the year to 31 March 2023.There is no deferred income in the year to 31 March 2023. |
The Scottish Centre For Children With |
Motor Impairments |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
18. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year | 280 | 276 |
19. | MOVEMENT IN FUNDS |
Net | Transfers |
movement | between | At |
At 1.4.22 | in funds | funds | 31.3.23 |
£ | £ | £ | £ |
Unrestricted funds |
Development Fund | 221,486 | (8,212 | ) | (931 | ) | 212,343 |
Pension Fund | 606,000 | 1,921,000 | - | 2,527,000 |
Legacy Fund | 75,000 | - | - | 75,000 |
902,486 | 1,912,788 | (931 | ) | 2,814,343 |
Restricted funds |
Revenue Fund | 759,566 | (93,826 | ) | - | 665,740 |
Early Intervention Programme | - | 27,728 | - | 27,728 |
Pupil Equity Fund | 12,279 | 2,721 | - | 15,000 |
Capital Fund | 2,287,388 | 137,418 | - | 2,424,806 |
Wellbeing Fund | 22,960 | (3,468 | ) | - | 19,492 |
Covid 19 Fund | 42,009 | (11,566 | ) | 931 | 31,374 |
STEM Fund | 997 | (997 | ) | - | - |
3,125,199 | 58,010 | 931 | 3,184,140 |
TOTAL FUNDS | 4,027,685 | 1,970,798 | - | 5,998,483 |
The Scottish Centre For Children With |
Motor Impairments |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
19. | MOVEMENT IN FUNDS - continued |
Net movement in funds, included in the above are as follows: |
Incoming | Resources | Gains and | Movement |
resources | expended | losses | in funds |
£ | £ | £ | £ |
Unrestricted funds |
Development Fund | 2,177 | (10,389 | ) | - | (8,212 | ) |
Pension Fund | - | (202,000 | ) | 2,123,000 | 1,921,000 |
2,177 | (212,389 | ) | 2,123,000 | 1,912,788 |
Restricted funds |
Revenue Fund | 2,066,429 | (2,160,255 | ) | - | (93,826 | ) |
Early Intervention Programme | 28,350 | (622 | ) | - | 27,728 |
Pupil Equity Fund | 25,075 | (22,354 | ) | - | 2,721 |
Capital Fund | 133,400 | (100,982 | ) | 105,000 | 137,418 |
Employer Pension Contribution Fund | 11,547 | (11,547 | ) | - | - |
Wellbeing Fund | - | (3,468 | ) | - | (3,468 | ) |
Covid 19 Fund | (1 | ) | (11,565 | ) | - | (11,566 | ) |
Qualifications & Assessment Fund | 560 | (560 | ) | - | - |
Campsie Fund | 21,844 | (21,844 | ) | - | - |
STEM Fund | - | (997 | ) | - | (997 | ) |
2,287,204 | (2,334,194 | ) | 105,000 | 58,010 |
TOTAL FUNDS | 2,289,381 | (2,546,583 | ) | 2,228,000 | 1,970,798 |
Comparatives for movement in funds |
Net | Transfers |
movement | between | At |
At 1.4.21 | in funds | funds | 31.3.22 |
£ | £ | £ | £ |
Unrestricted funds |
Development Fund | 221,450 | 36 | - | 221,486 |
Pension Fund | (73,000 | ) | 679,000 | - | 606,000 |
Legacy Fund | 75,000 | - | - | 75,000 |
223,450 | 679,036 | - | 902,486 |
Restricted funds |
Revenue Fund | 364,636 | 390,821 | 4,109 | 759,566 |
Pupil Equity Fund | 12,279 | - | - | 12,279 |
Capital Fund | 2,380,501 | (89,004 | ) | (4,109 | ) | 2,287,388 |
Wellbeing Fund | 26,428 | (3,468 | ) | - | 22,960 |
Covid 19 Fund | 119,719 | (77,710 | ) | - | 42,009 |
STEM Fund | - | 997 | - | 997 |
2,903,563 | 221,636 | - | 3,125,199 |
TOTAL FUNDS | 3,127,013 | 900,672 | - | 4,027,685 |
The Scottish Centre For Children With |
Motor Impairments |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
19. | MOVEMENT IN FUNDS - continued |
Comparative net movement in funds, included in the above are as follows: |
Incoming | Resources | Gains and | Movement |
resources | expended | losses | in funds |
£ | £ | £ | £ |
Unrestricted funds |
Development Fund | 36 | - | - | 36 |
Pension Fund | - | (202,000 | ) | 881,000 | 679,000 |
36 | (202,000 | ) | 881,000 | 679,036 |
Restricted funds |
Revenue Fund | 1,764,692 | (1,373,871 | ) | - | 390,821 |
Early Intervention Programme | 27,000 | (27,000 | ) | - | - |
Pupil Equity Fund | 17,704 | (17,704 | ) | - | - |
Capital Fund | 14,749 | (103,753 | ) | - | (89,004 | ) |
Employer Pension Contribution Fund | 11,547 | (11,547 | ) | - | - |
Wellbeing Fund | - | (3,468 | ) | - | (3,468 | ) |
Covid 19 Fund | 344,362 | (422,072 | ) | - | (77,710 | ) |
Qualifications & Assessment Fund | 560 | (560 | ) | - | - |
NLC Recover Fund | 2,081 | (2,081 | ) | - | - |
Campsie Fund | 15,605 | (15,605 | ) | - | - |
STEM Fund | 1,648 | (651 | ) | - | 997 |
Duke of Edinburgh Fund | 990 | (990 | ) | - | - |
2,200,938 | (1,979,302 | ) | - | 221,636 |
TOTAL FUNDS | 2,200,974 | (2,181,302 | ) | 881,000 | 900,672 |
Unrestricted Fund |
Development Fund represents reserve funds to support the operation of the core objectives of the charity. |
Unrestricted Designated Fund |
Pension Fund represents the annual movement within the defined benefit pension schemes. |
Legacy Fund represents income from legacies received and the associated expenses to support the terms of the legacy. |
Restricted Funds |
Revenue Fund represents the income received and expenditure incurred in meeting the day to day provision of the core services provided by the charity. |
Early Intervention Programme provides a therapeutic learning platform for parents through weekly sessions with their children (age 6 weeks to 3 years). |
Pupil Equity Fund represents a programme which is designed to enhance children's' communication abilities which would enrich their abilities related to literacy, numeracy, health and wellbeing. |
Capital Fund represents the net book value of the charity's assets together with capital grants received. In accordance with the tangible fixed asset accounting policy and the applicable accounting regulations, capital expenditure incurred is capitalised or expensed as appropriate. |
Employers Pension Contribution Fund - represents grants received towards teachers pension contributions. |
Covid 19 Fund represents income received and expenses incurred to allow the charity to continue operations during the covid 19 pandemic. |
The Scottish Centre For Children With |
Motor Impairments |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
19. | MOVEMENT IN FUNDS - continued |
Wellbeing Fund represents income received and expenses incurred to deliver the health and wellbeing project to children who attend the centre. |
Qualification & Assessment Fund - represents the income and expenses incurred to support training of employees.support the implementation of quality assurance and modernisation of assessment activities. |
Campsie Fund - represent income and expenses incurred in provision of administration salaries and administration associated costs. |
STEM Fund - represents income and expenses incurred in support of training of employees. |
Closed in the year to 31 March 2023 |
NLC Recover Fund - represents income and expenses incurred in rewilding the garden around the Centre. |
Duke of Edinburgh Fund - represents income and expenses incurred for licences required by the charity. |
Transfers between funds |
During the year, a transfer of £931 was transferred from the General Fund to the Capital Fund to reflect the fixed assets movement in the year. |
In the year to 31 March 2022, a transfer of £4,109 was transferred from the Revenue Fund to the Capital Fund to reflect the fixed assets movement in the year. |
20. | EMPLOYEE BENEFIT OBLIGATIONS |
The charity operates three multi-employer defined benefit pension schemes. The assets of these schemes are held separately in independently administered funds. The pension are: Scottish Teachers' Superannuation Scheme, National Health Service Superannuation Scheme (Scotland) (NHSSS) and Strathclyde Pension Fund. The total pension charge during the year to 31 March 2023 was £556,845 (2022 £466,090). There were no pension contribution amounts included within accruals (2022 nil). |
Scottish Teachers' Superannuation Scheme |
The charity participates in the Scottish Teachers Superannuation Scheme. The scheme is an unfunded statutory public service pension with benefits underwritten by the UK Government. The scheme is financed by payments from employers and from those current employees who are members of the scheme and paying contributions as specified by the regulations. The employer's contribution rate is 23%. |
National Health Service Superannuation Scheme (Scotland) (NHSSS) |
The charity participates in the National Health Service Superannuation Scheme (Scotland) (NHSSS). The scheme is an unfunded statutory public service pension with benefits underwritten by the UK Government. The scheme is financed by payments from employers and from those current employees who are members of the scheme and paying contributions as specified by the regulations. The employer's contribution rate is |
20.9%. |
Strathclyde Pension Fund |
The fund is a multi-employer defined scheme, administered in accordance with the Local Government Pension Scheme (Scotland) regulations 1998, as amended. |
A full actuarial valuation was carried out at 31 March 2023 by a qualified independent actuary using the projected unit method. |
The Scottish Centre For Children With |
Motor Impairments |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
20. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
The amounts recognised in the Balance Sheet are as follows: |
Defined benefit |
pension plans |
2023 | 2022 |
£ | £ |
Present value of funded obligations | 2,596,000 | (6,586,000 | ) |
Fair value of plan assets | (69,000 | ) | 7,192,000 |
2,527,000 | 606,000 |
Present value of unfunded obligations | - | - |
Surplus | 2,527,000 | 606,000 |
Net asset | 2,527,000 | 606,000 |
The amounts recognised in the Statement of Financial Activities are as follows: |
Defined benefit |
pension plans |
2023 | 2022 |
£ | £ |
Current service cost | 339,000 | 290,000 |
Net interest from net defined benefit asset/liability |
(14,000 |
) |
3,000 |
Past service cost | - | 63,000 |
325,000 | 356,000 |
Actual return on plan assets | 195,000 | 133,000 |
Changes in the present value of the defined benefit obligation are as follows: |
Defined benefit |
pension plans |
2023 | 2022 |
£ | £ |
Opening defined benefit obligation | 6,586,000 | 6,677,000 |
Current service cost | 339,000 | 290,000 |
Past service cost | - | 63,000 |
Contributions by scheme participants | 43,000 | 33,000 |
Interest cost | 181,000 | 136,000 |
Benefits paid | (122,000 | ) | (113,000 | ) |
Curtailments | (7,192,000 | ) | - |
Remeasurements: |
Actuarial (gains)/losses from changes in demographic assumptions |
325,000 |
(11,000 |
) |
Actuarial (gains)/losses from changes in financial assumptions |
(2,756,000 |
) |
(489,000 |
) |
(2,596,000 | ) | 6,586,000 |
The Scottish Centre For Children With |
Motor Impairments |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
20. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
Changes in the fair value of scheme assets are as follows: |
Defined benefit |
pension plans |
2023 | 2022 |
£ | £ |
Opening fair value of scheme assets | - | 6,604,000 |
Contributions by employer | 123,000 | 154,000 |
Contributions by scheme participants | 43,000 | 33,000 |
Expected return | 195,000 | 133,000 |
Benefits paid | (122,000 | ) | (113,000 | ) |
Return on plan assets (excluding interest income) |
(308,000 |
) |
381,000 |
(69,000 | ) | 7,192,000 |
The amounts recognised in other recognised gains and losses are as follows: |
Defined benefit |
pension plans |
2023 | 2022 |
£ | £ |
Actuarial (gains)/losses from changes in demographic assumptions |
(325,000 |
) |
11,000 |
Actuarial (gains)/losses from changes in financial assumptions |
2,756,000 |
489,000 |
Return on plan assets (excluding interest income) |
(308,000 |
) |
381,000 |
2,123,000 | 881,000 |
The major categories of scheme assets as a percentage of total scheme assets are as follows: |
Defined benefit |
pension plans |
2023 | 2022 |
Equities | 60% | 61% |
Bonds | 28% | 26% |
Property | 10% | 11% |
Cash | 2% | 2% |
100% | 100% |
Principal actuarial assumptions at the Balance Sheet date (expressed as weighted averages): |
2023 | 2022 |
Discount rate | 4.75% | 2.70% |
Future salary increases | 3.65% | 3.90% |
Future pension increases | 2.95% | 3.20% |
The average future life expectancies at age 65 are: |
Males | Females |
The Scottish Centre For Children With |
Motor Impairments |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
20. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
Current pensioners | 19.3 years | 22.2 years |
Future pensioners* | 20.5 years | 24.2 years |
*Figures assume members aged 45 as at the last formal valuation date. |
An allowance is included for future retirements to elect to take 50% of the maximum additional tax-free cash up to HMRC limits for pre-April 2009 service and 75% of the maximum tax-free cash for post-April 2009 service. |
21. | CONTINGENT LIABILITIES |
A contingent liability exists whereby the charity shall not dispose of any assets, without prior written consent of the Scottish Ministers, funded in part or in whole, with grant funds within five years of the asset being acquired. During that period the Scottish Ministers shall be entitled to the proceeds of disposal (or the relevant proportion of the proceeds based on the percentage of grant funding used in connection with the acquisition of the asset against the whole proceeds. The Scottish Ministers shall also be entitled to the relevant proportion of any proceeds resulting from any provision included as a condition of sale. Recovery by the Scottish Ministers shall not be required where the value of the asset is less than £1,000. |
22. | RELATED PARTY DISCLOSURES |
In Mar 2022, Board member Mr G Callan CA, retired as Partner at French Duncan LLP. French Duncan LLP undertake a payroll services for SCCMI and also provided HR support. The fee for the year to 31 March 2022 was £2,952. |
Key management personnel during year under review were: |
- Chief Executive: B Fraser |
- Head of Admin & Resources: Ms F Todd, resigned 14 Oct 2022, Ms Christina Greig appointed 6 Jan 2023. |
- Quality Enhancement Officer: Ms A Phillips, |
- Professional Lead for Education: Ms J Baillie |
- Professional Lead for Health: Ms B Haggerty. |
The total remuneration of the key management personnel in the year was £356,386 (2022 £341,522). |
The donations made to the Charity by Trustees during the year totalled £nil (2022: £1,000). |
23. | AUDIT - APB ETHICAL STANDARDS |
In common with many other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements. |
24. | SECURITY |
Two Standard Securities are granted by the charity in favour of the Secretary of State for Scotland. One was granted on 23 September 1992 over Craighalbert Centre, Cumbernauld and other subjects. The second was granted on 3 March 1995 over properties at 68, 70 and 70A Glen Douglas Drive, Cumbernauld. |