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 governing document, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
Our aim is to positively enhance the ageing process for elderly, isolated and vulnerable individuals and offer the very best health and wellbeing support.
Braid Health & Wellbeing provides a digital and physical space for everyone in need of support as they transition through life’s stages.
We have had a stable financial situation during the fiscal year with our funding from the Council and funds raised through our fundraiser keeping us solvent and allowing us to develop a number of innovative projects.
However, the next financial year will be more challenging due to the council issuing a tender process for future day care services.
As the value of the contract exceeded a certain amount, it meant that the contract was out for tender on the Scotland portal requiring us to decide if we wanted to bid for the day care service.
This was not entirely straightforward for us as a charity as the value of this new contract was significantly less in value compared to what has been the case up to and including this financial year; for us this would result in an almost 60% drop in income from the Council.
After much deliberating, the board of trustees, in conjunction with our CEO, decoded that we had little choice but to tender for the service. As it turned out, we were successful in being awarded the contract which will run initially for a 2 year period.
As well as the contract award, the council also imposed a cost for rent of the premises we occupy. So this was another fiscal challenge for us as we had enjoyed a rent free arrangement. However we were faced with no option but to comply although we did negotiate a significant reduction in the original amount levied as we asked for the upper premises to be rented out separately avoiding it falling on us to sub let the upstairs, particularly if we were unable to let these premises in the future. (at the present time a child contact centre charity occupies the upstairs)
As a result of the drop in income we have had to reconfigure our budget for the incoming financial year....our savings were helped to some extent by our CEO Ray Baird deciding to move to another post In the North of England. While his departure is a significant loss to us, given his innovative management and the development of a more diverse health and well being service, we are now in a much stronger place as a result of what he has achieved for us during his 3 years with us.
We decided not to appoint another CEO and instead to upgrade another two members of the management team. This saving on his salary, and that along with another reshuffle of care staff and the non replacement of another supervisor post, we feel our revised income can be matched with these and other savings.
We are also still building our private clients which is another important revenue stream for us.
Overall we continue to be an innovative day care service for older people with increasing social care needs by the introduction of appropriate health and well being programmes to make the experience as stimulating and worthwhile as possible.
While our Margaret Miller Centre is still available to outside services, we hope that in time it will see increased usage by a more diverse group of service users.
We have also embarked on a well being project with the University of Edinburgh who will use our older people in the day centre to measure outcomes based on research methods which means we should be able to say more specifically what benefits older people in attending our centre.
We continue to have allied health professional and social work students who contribute significantly to our day care service.
Our services continue to be in good shape and this is due in no small measure to the hard work, talent and diligence shown by our staff group.
For the year ended 31 March 2023, the Statement of Financial Activities shows an overall surplus of £98,493 (2022 - surplus £70,976).
This is made up of a surplus of £116,149 (2022 surplus - £52,682) on unrestricted funds and a deficit on restricted funds of £17,656 (2022 surplus - £18,294).
The amount of unrestricted funds excluding designated funds held at 31 March 2023 was £240,579 (2022 - £126,485).
Designated funds held at 31 March 2023 was £26,555 (2022 - £24,500).
Restricted funds held at 31 March 2023 was £12,729 (2022 - £30,385).
The funds are detailed in the notes to the accounts.
Reserves Policy
The Trustees are monitoring their policy whereby the unrestricted funds not committed or invested in tangible fixed assets by the charity is between three to six months of expenditure. At the year end the reserves amounted to around 2 months of expenditure and the Trustees are working to remedy this.
Risk Management
The Trustees have conducted a review of the major risks to which the charity is exposed. A risk register has been established and is updated at least annually. Where appropriate, systems or procedures have been been established to mitigate the risks the charity faces.
Plans for the future
Our financial future has been stabilised through the awarding of the WLC contract for day care, some efficiency savings and the continued development of our private clients.
This has been achieved against the loss of the previous level of council support and the imposition of a rent for the property. As a board we are optimistic that we have weathered the potential storm of reduced funding and higher costs through the measures we have already taken and we are still hopeful that our health and well being emphasis will still realise involvement of other community groups which will provide us with other income streams.
Braid Health & Wellbeing Ltd (previously known as Braid House Day Centre Limited) is registered with Companies House as a company limited by guarantee and is governed by the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 and the provisions set out in its memorandum and articles of association.
Structure, governance and management (continued)
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:
Mr R Barnes Chair (resigned 30/10/2023)
Mr J Moore Vice-Chair/Chair (Vice-Chair to 29/10/2023, Chair from 30/10/2023)
Mr J Richardson Treasurer (resigned 31/01/2023)
Mrs H Clark Treasurer (Treasurer from 30/10/2023)
Ms C Gard
Ms C Mellon (resigned 23/08/2023)
Ms A McKenzie (appointed 28/07/2023)
Mr R Baird (appointed 19/07/2023)
Senior Management Team
Ray Baird CEO (resigned 01/02/2023)
Lynda McArthur Senior Manager (appointed 01/03/2023)
Registered Charity Name
Braid Health & Wellbeing Ltd
Charity Registration Number
SC012574
Company Registration Number
SC120813
Principal Office and Registered Office
Braid House
Labrador Avenue
Howden
Livingston
EH54 6BU
Auditors
Thomson Cooper
22 Stafford Street
Edinburgh
EH3 7BD
Trustees
The trustees are appointed by the existing trustees at any time during the year. The existing trustees actively seek to recruit new trustees whose skills would complement and add to the Board. The memorandum and articles of association does not restrict the number of trustees that can be appointed.
No trustee shall be appointed to a salaried office of the charity.
The trustees are given an induction to the practical work of the charity. New trustees meet with the chairperson, other trustees and centre management and are given the previous years minutes of meetings, memorandum and articles of association, the latest financial statements, major reports and also the booklet Guidance for Charity Trustees' produced by OSCR. The booklet fully outlines the duties and responsibilities of charity trustees in Scotland.
The Board undertook training, together with senior staff, to maintain all compliance and statutory requirements. The trustees are responsible for the administration, management and control of the affairs and property of the charity.
Braid Health & Wellbeing Ltd has a Board consisting of six trustees who meet monthly and are responsible for the strategic direction and policy of the charity. The trustees are responsible for ensuring that the charity delivers the services specified and that key performance indicators are met.
The trustees, who are also the directors of Braid Health & Wellbeing Ltd 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;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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 are responsible for the maintenance and integrity of the charity and financial information included on the Charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
In accordance with the company's articles, a resolution proposing that Thomson Cooper be reappointed as auditor of the company will be put at a General Meeting.
The trustees' report was approved by the Board of Trustees.
Opinion
We have audited the financial statements of Braid Health & Wellbeing Ltd (the ‘Charity’) for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Charity 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.
Conclusion 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 Charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
We have nothing to report in respect of the following matters in relation to which the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:
the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
proper accounting records have not been kept; or
the financial statements are not in agreement with the accounting records; or
we have not received all the information and explanations we require for our audit.
As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the Charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the Charity’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.
We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: existence and timing of recognition of income, posting of unusual journals along with complex transactions and non-compliance with laws and regulations. We discussed these risks with management, designed audit procedures to test the timing and existence of revenue and tested a sample of journals to confirm they were appropriate. In addition, we reviewed areas of judgement for indicators of management bias to address these risks.
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the officers and other management (as required by the auditing standards).
We reviewed the laws and regulations in areas that directly affect the financial statements including applicable charity and company law and considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.
With the exception of any known or possible non-compliance with relevant and significant laws and regulations, and as required by the auditing standards, our work in respect of these was limited to enquiry of the officers and management of the charity.
We communicated identified laws and regulations and potential fraud risks throughout our team and remained alert to any indications of non-compliance or fraud throughout the audit. However the primary responsibility for the prevention and detection of fraud rests with the trustees.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charity’s trustees, as a body, in accordance with Section 44(1) (c) of the Charities and Trustees Investment (Scotland) Act and regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Thomson Cooper is eligible for appointment as auditor of the Charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Braid Health & Wellbeing Ltd is a private company limited by guarantee incorporated in Scotland. The registered office is Braid House, Labrador Avenue, Howden, Livingston, EH54 6BU.
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.
Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Charitable expenditure includes direct and indirect costs of the charity. Indirect costs have been allocated between costs of activities in the furtherance of charitable objectives, and governance based on staff time and usage.
Governance costs include any costs in relation to audit and accountancy work, legal and professional advice, and consultancy costs associated with constitutional and statutory requirements.
Resources expended are included in the Statement of Financial Activities on an accruals basis, inclusive of any VAT which cannot be recovered.
Support costs have been allocated between activities undertaken directly and charitable activities based on the number of staff involved in each area
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 has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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.
Grants
West Lothian Council Income
Day Care Fee Income
University of Edinburgh
Fundraising
Social work tutor costs
Day care centre services
Over 50s expenditure
Usage
Premises
Usage
Communications and IT
Staff time
Heating and Lighting
Floor space
Water rates
Floor space
Equipment leasing
Usage
Payroll fees
Usage
Staff time
Usage
Premises
Usage
Communications and IT
Staff time
Heating and Lighting
Floor space
Cleaning
Cleaning
Water rates
Floor space
Equipment leasing
Usage
Payroll fees
Usage
Loss on disposal of fixed asset
Usage
The average monthly number of employees during the year was:
The key management personnel of the charity comprise the trustees and the manager. The total amount of employee benefits received by key management personnel is £46,948 (2022 - £47,223).
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 defined contribution schemes was £10,884 (2022 - £11,416).
Corra Foundation Grant - for communication equipment and devices.
Age Scotland - Relaxation classes, Singer & Life Skills Project
West Lothian Council - Christmas Grant - received to provide a Christmas dinner.
Foundation Scotland Grant - for Wellbeing person, care staff costs, staff training and Komp devices.
Optima Grant - for travel costs
Adapt & Thrive - Building & Post Pandemic Expenses
Barchester Health - Sensory Lights, Bubble Tube, Magicians Days
Kickstart Scheme - Kickstart salaries
Mitchells Robertson/JTH Foundation - Community Health & Wellbeing Project
RS McDonald - Community Health & Wellbeing Project
The Percy Bilton Charity - New Hoist
Turcan Connell/ Hugh Fraser - Community Health & Wellbeing Project
West Lothian Development Trust - Community Health & Wellbeing Project
Bank of Scotland - To fund external activity providers and activity clubs e.g. art therapists, reflexologist
St James Place Wealth Management - To fund occupational therapist
Steel Charitable Foundation - Funding towards Community health & Wellbeing project costs:
Develop a range of support services for the elderly
Provide outreach support, digital or life skills courses
Develop support services for unpaid carers
Hire external activity providers
West Lothian Development Main Fund - Funding towards Community health & Wellbeing project costs:
Develop a range of support services for the elderly
Provide outreach support, digital or life skills courses
Develop support services for unpaid carers
Hire external activity providers
Unpaid Carers Fund - Fund wellbeing days for carers and entertainment evenings
Designated Dementia Centre Facilities Improvement Fund
This fund is for the development of the two sitting rooms downstairs, the potential upstairs expansion of facilities and any other improvements required. At 31 March 2023 the closing balance on the fund was £17,581 (2022 - £17,581).
Designated Fixed Assets Fund
It was agreed by the trustees that the fixed assets of the charity be disclosed separately from general funds as a designated fund. The balance on this fund at 31 March 2023 was £8,974 (2022 - £6,919).
Covid-19 Grants
It was agreed by the trustees that Covid-19 grants would be ring-fenced separately from general funds as a designated fund, this fund is now no longer required and has been transferred back to general funds. The balance on this fund at 31 March 2023 was £nil (2022 - £nil).
These are unrestricted funds which are material to the Charity's activities made up as follows:
Incoming resources
Resources expended
Transfers
Incoming resources
Resources expended
Transfers
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:
No travel or subsistence claims were made by any trustee of the charity during the financial year (2022 - £nil). During the financial year a payment of £72 (2022 - £nil) was made to J Moore in respect of reimbursement for domain costs.
The Charity is indebted to West Lothian Council for providing office premises rent free. The valuation placed upon this contribution by the Trustees is £43,420 per annum (2022 - £38,000). The income equivalent is recognised within incoming resources as a donated service, and an equivalent charge is included within rent, rates and insurance.
Post year end, the Charity has been made aware by West Lothian Council that rent will begin to be charged rent from 1st April 2023 at a cost of £43,420 per annum.
The Charity had no debt during the year.