REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
Report of the Trustees and |
Financial Statements For The Year Ended 31 March 2023 |
for |
The Welcoming Association |
REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
Report of the Trustees and |
Financial Statements For The Year Ended 31 March 2023 |
for |
The Welcoming Association |
The Welcoming Association |
Contents of the Financial Statements |
For The Year Ended 31 March 2023 |
Page |
Report of the Trustees | 1 | to | 9 |
Report of the Independent Auditors | 10 | to | 13 |
Statement of Financial Activities | 14 |
Statement of Financial Position | 15 |
Notes to the Financial Statements | 16 | to | 26 |
The Welcoming Association (Registered number: SC398913) |
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). |
Our vision is of a diverse and inclusive Scotland, where everyone feels welcome and can achieve their potential. |
OBJECTIVES AND ACTIVITIES |
Objectives |
The charity's objectives as stated in the Articles of Association are: |
1) The advancement of education |
2) The advancement of citizenship or community development; and |
3) The promotion of religious or racial harmony |
We believe that through the above three main objectives, our participants will: |
- Develop their English language skills, removing language as a barrier to employment, education or integration in Scotland |
- Build their social and support networks by making connections and forming friendships with local people and other New Scots |
- Learn to live more sustainably through home food growing, home energy saving, recycling, and environmental education |
- Gain insight into their new home through experiencing Scotland's music, food, history and culture |
- Improve their quality of life in Edinburgh by taking part in creative arts and health and wellbeing activities |
Local people will: |
- Have opportunities to welcome New Scots to Edinburgh through a range of meaningful and well-supported volunteering positions |
- Experience and understand the social, economic and cultural value that migrants and refugees bring to Scotland. |
Our service users |
During the year ended 31 March 2023, we supported 1,292 service users from over 95 countries, including Ukraine, Afghanistan, Syria, China, Spain and Sudan. Since the end of the financial year, we have supported a further 275 service users. More than 65% of our service users are women, over 30% are men, and a small portion are non-binary or chose not to disclose their gender. Service users under the age of 35 make up over 41% of our membership. |
Significant activities |
We provided the following activities to our service users: |
- English language classes |
- Employability and business guidance support |
- One-to-one befriending |
- Friendship groups |
- Home energy advice |
- Community Fridge |
Highlights |
- 411 English classes (in person and online) |
- 1,746 attendances at English classes |
- 211 individuals accessed employability and business guidance support |
- 407 individuals supported through the befriending programme |
- 37 one-to-one befriending matches |
- 100 volunteers and 2,453 hours of volunteering |
- 70 households received home energy advice |
- 234 households received food supplies |
The Welcoming Association (Registered number: SC398913) |
Report of the Trustees |
For The Year Ended 31 March 2023 |
English Language Classes |
Our English language classes remain the core of our programme, reflecting the significance of language to integration and settlement. It is the first entry point for most of our new participants before they begin to engage in other social and cultural activities. |
English language is the major barrier to New Scots gaining employment that matches their skills and qualifications. In order to overcome this barrier, we provide classes throughout the week for all stages from complete beginners to more advanced levels. |
All classes are taught by qualified and experienced ESOL teachers, all of whom are volunteers. |
At the end of 2021 we had begun to re-introduce three in-person classes per week and taught a total of 26 in-person classes during that financial year. This year, we began with three in-person and three online classes per week, and all the classes were well attended but manageable. |
Following Russia's invasion of Ukraine, our membership increased dramatically by hundreds of people, and holding our beginner English classes in The Welcoming's office became untenable. We decided to hire a space at St. Martin's Community Resource Centre in August 2022 and have held classes there ever since. Between April and August 2022, we also introduced two more daytime classes at The Welcoming, and in September we started running three evening classes at the University of Edinburgh. |
We were able to engage with the University's Access to Rooms pilot scheme which allows third sector organisations to use their rooms without cost. Access to Rooms has enabled us to run evening classes since September and the pilot, originally scheduled to end in April, has been extended to December 2023. The Access to Rooms team is currently leveraging for support to make the scheme a permanent fixture at the University. |
Employability and Business Guidance |
Our Employability and Business Guidance service focuses on aspects of employability that are particularly challenging for many New Scots: Writing job applications and CVs, practising interview skills, navigating the UK job market, and confidence building. |
This work is delivered through one-to-one tailored guidance sessions and an ongoing six-week employment guidance course held at The Welcoming. |
More than 70% of people who accessed our employability service in the last year achieved a positive destination (i.e. employment, volunteering, training or education). |
One-to-One Befriending |
Our One-to-One Befriending programme connects local volunteers with service users to provide New Scots with one-to-one support that is tailored to their needs and personal goal. |
Through this programme, service users and volunteers meet regularly over nine months, during which they have the opportunity to practise English, share cultures, explore different parts of Edinburgh, and build a supportive friendship. |
With an average capacity of 30 befriending matches per year, the programme prioritises the most isolated New Scots who face multiple barriers to integration. |
For the programme to be successful it is essential to consider each case individually. For this reason, the matching process - which includes the service user registration, the recruitment and induction of volunteers, and the identification of suitable befriending matches - can take up to several months. |
We enable New Scots to make friends for life: Over 90% of our matches stay in touch after their nine-month befriending experience concludes. |
The Welcoming Association (Registered number: SC398913) |
Report of the Trustees |
For The Year Ended 31 March 2023 |
Friendship Groups |
Our friendship groups offer opportunities for New Scots to meet new people, practise English, explore Edinburgh and build community together. |
The Women's Conversation Space is a weekly multi-cultural group for women to meet people from different cultures, build friendships, practise English, and try new activities. |
The Afghan Women's Group is a weekly group for women from Afghanistan to practise English, engage in activities including cooking, sewing and art and explore Edinburgh. |
The Conversation Café is a weekly gathering for New Scots to spend time in a friendly atmosphere, get to know people, practise English, and learn about Scottish culture. |
Scotland for Newcomers is a weekly outing for New Scots to explore Edinburgh, meet new people and practise English. The group regularly visits nature spots, exhibitions, cultural events and more. |
The Big Ideas Group was an evening group for New Scots with intermediate to advanced levels of English to discuss interesting topics, make friends and refine English skills. The group concluded in July 2022. |
In addition to our regular groups, we offer various one-off or short-term activities, including art workshops, walks along the Water of Leith, days out to the Fringe, and workshops at the National Library of Scotland. |
Home Energy Advice |
Our Home Energy Advice service aims to provide essential home energy advice and support to New Scots households at risk of fuel poverty. |
New Scots are placed in a particularly vulnerable position due to language and financial barriers, and the potential lack of understanding and knowledge of local energy and billing systems. Working in collaboration with local supporting agencies, such as Home Energy Scotland, our service enables participants to use energy more efficiently and save money on energy bills. |
This year we provided home energy support to 70 households in Edinburgh. The appointment of freelance energy advisors allowed us to offer one-to-one support in Farsi and Arabic and we used a telephone interpreting service to communicate with many service users in their own languages. |
Community Fridge |
Our Community Fridge provides free food to New Scots who are at risk of food poverty. The fridge is open once per week, and the food is provided by Fareshare, local supermarkets, donations from other organisations and our Community Garden. |
In the last year our Community Fridge enabled 234 households to regularly access nutritious food and we were able to offer volunteering opportunities through the Community Fridge to our members. As a drop-in service, the main challenge of the community fridge it to manage the fluctuation in the number of service users and make sure the food is culturally appropriate to our community. |
Community Garden |
Our Community Garden offers a space where our service users and volunteers can learn about food growing, share green skills and food traditions from their home countries, and spend time in nature. |
The garden is located at Saughton Mains Allotments and the food harvested is shared among our community through our Community Fridge. |
The Welcoming Association (Registered number: SC398913) |
Report of the Trustees |
For The Year Ended 31 March 2023 |
The 3Ds Course: Digital Skills for Arabic speakers |
The 3Ds course supported Arabic speakers to learn digital skills. The course was completed by 14 out of 20 participants, this 70% completion rate speaks well of our tutor's skills in devising and teaching this course and their dedication to the participants. The course concluded in October 2022. |
The Refugee Resettlement Programme |
We offer a flexible and relevant programme of English language tuition and cultural integration activities to support all the different communities arriving in Edinburgh through the UK Government's Refugee Resettlement Programme. |
Volunteers at The Welcoming |
Volunteers are vital to our work, helping us to welcome New Scots by delivering many of our vital services from ESOL to friendship groups and one-to-one befriending. The 100 volunteers who supported us this year have offered an incredible 2,453 hours of volunteering online, offline, for one-off meetups, and to offer extra, such as when we supported Ukrainian families arriving in Edinburgh. |
Our volunteers assist across all activities of The Welcoming, in the office and as part of community events. They bring a wide range of skills, experiences and perspectives to our work and play a key role in delivering The Welcoming's activities both online and in person, as we continue a hybrid delivery that matches our participants' needs and availability. |
Involving volunteers helps to ensure that The Welcoming is a diverse and flexible organisation that can respond effectively to the needs and interests of participants, and provides the sense of community and cultural mix that is at the core of what we do. |
Collaborative and Partnership Working |
Collaborative working is at the heart of The Welcoming. We signposted and helped New Scots connect with services and opportunities across Edinburgh and have strengthened our partnerships with many organisations |
Government and local authorities |
City of Edinburgh Council - Adult Education Programme |
National Health Service |
Scottish Government - Scottish Resettlement Programme |
UK Government - Department for Work and Pensions Employer and Partnership Team, Edinburgh Job Centres |
Voluntary organisations |
Access to Industry |
Ashden |
Association of Ukrainians in Great Britain |
Befriending Network |
Broomhouse Hub |
Capital City Partnership |
Changeworks |
Citizen’s Advice Edinburgh |
City of Sanctuary |
Community Fridge Network |
Edinburgh and Lothians Regional Equality Council |
Edinburgh City Mission |
Edinburgh Printmakers |
Fareshare |
The Welcoming Association (Registered number: SC398913) |
Report of the Trustees |
For The Year Ended 31 March 2023 |
Four Square |
Fresh Start |
Health All Round |
Home Energy Scotland |
LINKnet |
Mental Health Foundation |
Multi Cultural Family Base |
Mustard Seed Edinburgh |
National Library of Scotland |
National Museum of Scotland |
Neighbourly |
New Scots Edinburgh Steering Group |
New Scots Refugee Integration Delivery Project |
North Edinburgh Support Services |
Open Book Edinburgh |
People Know How |
Princes Trust |
Refugees, Asylum Seekers and Migrants Working Group |
Royal Botanic Gardens Edinburgh |
Saheliya |
Scotland’s Community of Access and Participation Practitioners |
Scottish Refugee Council |
SHRUB Coop |
Student Action for Refugees (University of Edinburgh) |
Tent Partnership for Refugees |
The Edinburgh Remakery |
Volunteer Edinburgh |
Water of Leith Conservation Trust |
Wellspring Scotland |
Wester Hailes Healthy Living Centre |
Workers’ Educational Association |
Educational establishments |
Basil Paterson |
Centre for English Studies |
Edinburgh College |
ESOL Providers Partnership |
The Language Institute - Edinburgh |
University of Edinburgh |
Centre for Open Learning |
Widening Participation Department |
Businesses |
Bell Construction Company |
Direct Partners Ltd |
Edinburgh Festival Fringe |
Edinburgh International Festival |
IHG Hotels and Resorts Recruitment Service |
Operation Play Outdoors |
Victoria Recruitment |
Vittoria Restaurant Recruitment |
More information on The Welcoming’s activities can be found on our website: www.thewelcoming.org |
The Welcoming Association (Registered number: SC398913) |
Report of the Trustees |
For The Year Ended 31 March 2023 |
Our Funders |
The Welcoming Association would like to extend its appreciation to our funders for their unwavering and continued support over the years: |
- Ashden Award |
- Edinburgh Integrated Joint Board |
- EVOC |
- Henry Smith |
- National Lottery Community Fund |
- Robertson Trust |
- Scottish Government |
- St Giles |
- Tudor Trust |
- Awards For All |
- City of Edinburgh Council |
- Craignish Trust |
- Octopus |
- Redress Scheme |
- Scottish Refugee Council |
- The JJ Charitable Trust |
FINANCIAL REVIEW |
Financial review |
Income for the year was £408,482 and expenditure was £374,068 resulting in surplus for the year of £34,414. A full breakdown of the income and expenditure is given in the Statement of Financial Activities. |
The Welcoming Board has concluded that the organisation should have unrestricted reserves of approximately three months' running costs (approximately £90,000) to provide for periods when there is a shortfall of funding and further funding is being sought. Unrestricted reserves as at 31st March 2023 of £129,559 are above this target figure. The directors' recognise the importance of sufficient reserves and have prioritised funding diversification and sustainability as part of the longer-term strategic plan. |
The Welcoming employees are predominantly employed on fixed term contracts subject to the availability of funding. |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Structure |
The Welcoming Association, also known as 'The Welcoming' is a company limited by guarantee, with the liability of members limited to £1 each. The company is governed by the terms of its Articles of Association and is a registered Scottish Charity. |
Members of The Welcoming Board are elected from the membership of The Welcoming at the Annual General Meeting or appointed at any time by the Board. At each Annual General Meeting, Board members who have served for a continuous three-year period retire from office but may be eligible for re-election or re-appointment for a further period of three years, subject to a maximum six years in total. |
New Board members receive an induction pack with background information about The Welcoming and OSCR Guidance and Good Practice for Charity Trustees. They also attend an orientation meeting at The Welcoming and are encouraged to join The Welcoming's activities and events in order to meet participants and become familiar with the work of the organisation. |
The Board meets every two months and is responsible for the overall strategic management and development of the organisation. Day to day management of the charity is delegated to the Director, Tesfu Gessesse. |
The names of those who served as members of the Welcoming Board during the year are shown on the following page. |
The Welcoming Association (Registered number: SC398913) |
Report of the Trustees |
For The Year Ended 31 March 2023 |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Governance and Management |
The Welcoming Association places great importance in having accountable, transparent and responsible governance that ensures the activities of the Association are in line with its vision and values. |
The Welcoming Board focuses its work on providing oversight over financial performance, risk management and organisational performance and impact. The Board also provides recommendations for the strategic and operational direction of The Welcoming. |
The Board of Directors is responsible for providing overall strategic direction but the 13 members of our multicultural and diverse workforce, led by a capable senior management team, and supported by a wide range of volunteers, are responsible for implementing the delivery of the strategic plan. |
The Purpose of The Welcoming Association |
The Welcoming exists to welcome, orientate and assist migrants and refugees in Edinburgh so that they can build positive lives, have choices, contribute to their new communities and feel at home in Scotland. |
Inward migration is crucial to Scotland's future prosperity. Scotland has demographic and geographical needs that are distinct from the rest of the UK, and it is essential that we are an attractive destination for migrants able to come here under prevailing UK immigration policy. |
Our strategic aims are to: |
- Encourage people from across the world to actively choose Scotland as their home |
- Enable New Scots to quickly settle and contribute to their new country |
- Engage established Scots of all ages in the process of welcoming new arrivals |
- Ensure effective partnership working with other organisations sharing these aims |
- Influence policy and practice to advance the integration and inclusion of our New Scots |
The Welcoming provides opportunities to build confidence, socialise and develop English language skills which are essential for creating the ability to integrate, develop and share interests. The Welcoming further supports New Scots to utilise and develop their skills, find employment and access local services. The Welcoming offers numerous opportunities for friendship, creativity, health and wellbeing. |
The Welcoming nurtures a diverse and inclusive society where all feel welcome and empowered to achieve their full potential, The Welcoming builds community by connecting locals and New Scots through social and cultural exchanges and in collaboration with numerous partners. |
REFERENCE AND ADMINISTRATIVE DETAILS |
Registered Company number |
Registered Charity number |
Registered office |
The Welcoming Association (Registered number: SC398913) |
Report of the Trustees |
For The Year Ended 31 March 2023 |
Trustees |
Auditors |
Chartered Accountants & Statutory Auditors |
Regent Court |
70 West Regent Street |
Glasgow |
G2 2QZ |
STATEMENT OF TRUSTEES' RESPONSIBILITIES |
The trustees (who are also the directors of The Welcoming Association 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; |
- | 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. |
In so far as the trustees are aware: |
- | there is no relevant audit information of which the charitable company's auditors are unaware; and |
- | the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. |
AUDITORS |
The auditors, Robb Ferguson, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
Approved by order of the board of trustees on |
The Welcoming Association (Registered number: SC398913) |
Report of the Trustees |
For The Year Ended 31 March 2023 |
Report of the Independent Auditors to the Members of |
The Welcoming Association |
Opinion |
We have audited the financial statements of The Welcoming Association (the 'charitable company') for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Statement of Financial Position 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. |
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 the provisions available for small entities, in the circumstances set out in note 14 to the financial statements, 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 Members of |
The Welcoming Association |
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 requires us to report to you if, in our opinion: |
- | adequate 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; or |
- | the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees. |
Responsibilities of trustees |
As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
The Welcoming Association |
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. |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was 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; |
- We identified the laws and regulations applicable to the company through discussions with directors and other |
management, and from our wider knowledge and experience; |
- We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the The Charities Accounts (Scotland) Regulations 2006 and FRS 102 SORP. |
- We assessed the extent of compliance with the laws and regulations identified above through making enquiries of |
management and inspecting legal correspondence; and |
- Identified laws and regulations were communicated within the audit team regularly and the team remained alert to |
instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of |
actual, suspected and alleged fraud; and |
- Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations |
Audit response to risks of irregularities identified |
To address the risk of fraud through management bias and override of controls, we: |
- Performed analytical procedures to identify any unusual or unexpected relationships; |
- Tested journal entries to identify unusual transactions; |
- Assessed whether judgements and assumptions made in determining the accounting estimates set out were indicative of potential bias; and |
- Investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- Agreeing financial statement disclosures to underlying supporting documentation; |
- Reading the minutes of meetings of those charged with governance; |
- Enquiring of management as to actual and potential litigation and claims; and |
- Requesting correspondence with HMRC, OSCR and the charity's legal advisors. |
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 directors and other management and the inspection of regulatory and legal correspondence, if any. |
Report of the Independent Auditors to the Members of |
The Welcoming Association |
Material misstatements that arise due to fraud can be harder to detect than 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. Our audit work has been undertaken so that we might state to the charitable company's members 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 |
Chartered Accountants & Statutory Auditors |
70 West Regent Street |
Glasgow |
G2 2QZ |
The Welcoming Association |
Statement of Financial Activities |
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 |
Charitable activities |
Charitable activities | 5,801 | 378,506 | 384,307 | 377,042 |
Total |
EXPENDITURE ON |
Charitable activities |
Charitable activities | 13,345 | 360,723 | 374,068 | 369,815 |
NET INCOME |
RECONCILIATION OF FUNDS |
Total funds brought forward |
TOTAL FUNDS CARRIED FORWARD | 242,179 |
The Welcoming Association (Registered number: SC398913) |
Statement of Financial Position |
31 March 2023 |
2023 | 2022 |
Unrestricted | Restricted | Total | Total |
funds | funds | funds | funds |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
CURRENT ASSETS |
Debtors | 9 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 10 | ( |
) | ( |
) | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
NET ASSETS |
FUNDS | 12 |
Unrestricted funds | 112,928 |
Restricted funds | 129,251 |
TOTAL FUNDS | 242,179 |
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. |
The financial statements were approved by the Board of Trustees and authorised for issue on |
The Welcoming Association |
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. |
Going concern |
In accordance with their responsibilities as directors, the directors have considered the appropriateness of the going concern basis for the preparation of the financial statements. |
In common with other charitable organisations, the challenge is to secure and maintain adequate unrestricted reserves to enable the charitable company to continue its activities in the event of a decrease in funding, and the directors recognise this uncertainty due to the ongoing high demand for funding support across the third sector. |
Current and future financial information is regularly monitored at Board level, based on projections, funding in place, and the organisation's previous track record of securing funding and delivery on projects. In addition, if funding were to decrease, the directors are confident that there are adequate unrestricted reserves and sufficient flexibility built in to the cost base to ensure that this would not be to the detriment of the continuity of the charitable company. |
Accordingly, the directors have assessed the charitable company's ability to continue as a going concern and have reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing these financial statements. |
Income |
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. |
Expenditure |
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost 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 resources. |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Office equipment | - |
Taxation |
The charity is exempt from corporation tax on its charitable activities. |
Fund accounting |
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. |
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. |
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. |
The Welcoming Association |
Notes to the Financial Statements - continued |
For The Year Ended 31 March 2023 |
1. | ACCOUNTING POLICIES - continued |
Pensions |
The charity operates a defined contribution pension scheme. Contributions are charges to the income and expenditure account as they become payable in accordance with the rules of the scheme. |
Debtors |
Debtors are recognised at the settlement amount due. |
Creditors |
Creditors and provisions are recognised, at settlement amount, where the charity has a present obligation resulting from a past event, which is likely to result in the transfer of funds to a third party, and the amount due can be measured or estimated reliably. |
Pensions |
The charity operates a defined contribution pension scheme. Contributions are charges to the income and expenditure account as they become payable in accordance with the rules of the scheme. |
2. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In the application of the charity's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experiences and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The directors are of the opinion that there are no matters of significant judgement and estimation which are material to the financial statements. |
3. | NET INCOME/(EXPENDITURE) |
Net income/(expenditure) is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets |
4. | AUDITORS' REMUNERATION |
2023 | 2022 |
£ | £ |
Fees payable to the charity's auditors for the audit of the charity's financial statements |
4,000 |
3,500 |
The Welcoming Association |
Notes to the Financial Statements - continued |
For The Year Ended 31 March 2023 |
5. | 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 trustees' expenses paid for the year ended 31 March 2023 nor for the year ended 31 March 2022. |
6. | STAFF COSTS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
258,480 | 293,541 |
The amount of employee benefits received by key management personnel was £43,698 (2022: £41,617). During the year The Welcoming was supported by volunteers in a variety of roles including teachers, befrienders, group facilitators and helpers, home energy advisors, events assistants and creative artists. |
The average monthly number of employees during the year was as follows: |
2023 | 2022 |
Employees |
7. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES |
Unrestricted | Restricted | Total |
funds | funds | funds |
£ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies |
Charitable activities |
Charitable activities | 10,000 | 367,042 | 377,042 |
Total |
EXPENDITURE ON |
Charitable activities |
Charitable activities | 10,660 | 359,155 | 369,815 |
NET INCOME |
Transfers between funds | (6,095 | ) | 6,095 | - |
The Welcoming Association |
Notes to the Financial Statements - continued |
For The Year Ended 31 March 2023 |
7. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued |
Unrestricted | Restricted | Total |
funds | funds | funds |
£ | £ | £ |
Net movement in funds |
RECONCILIATION OF FUNDS |
Total funds brought forward | 99,892 | 109,816 |
TOTAL FUNDS CARRIED FORWARD | 112,929 | 129,250 | 242,179 |
8. | TANGIBLE FIXED ASSETS |
Office |
equipment |
£ |
COST |
At 1 April 2022 and 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
9. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Prepayments and accrued income |
The Welcoming Association |
Notes to the Financial Statements - continued |
For The Year Ended 31 March 2023 |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Accruals and deferred income |
In the year ended 31 March 2022 the charity deferred funds of £200, £500 and £50,000 from St Giles, Scottish Refugee Council and Tudor Trust respectively In the current year, the charity deferred funds of £8,471 from Foundation Scotland and £68,403 from Scottish Refugee Council. |
11. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
The Welcoming Association |
Notes to the Financial Statements - continued |
For The Year Ended 31 March 2023 |
12. | MOVEMENT IN FUNDS |
Net |
movement | At |
At 1.4.22 | in funds | 31.3.23 |
£ | £ | £ |
Unrestricted funds |
General fund | 107,499 | 18,684 | 126,183 |
Fixed assets fund | 5,429 | (2,053 | ) | 3,376 |
16,631 |
Restricted funds |
Tudor Trust | 10,899 | (2,769 | ) | 8,130 |
CEC Syrian Resettlement Programme | 49,750 | 26,170 | 75,920 |
Health Inequalities Programme | 22,194 | (18,283 | ) | 3,911 |
Big Lottery | 13,236 | (6,707 | ) | 6,529 |
Henry Smith Charity | 22,729 | (16,432 | ) | 6,297 |
Scottish Refugee Council | 46 | - | 46 |
Robertson Trust | 1,576 | (331 | ) | 1,245 |
Welbeing Fund | 1,400 | - | 1,400 |
St Giles | 2,483 | 2,927 | 5,410 |
3Ds Project - Scottish Government | 4,938 | (4,809 | ) | 129 |
Afghan Womens English Classes | - | 3,261 | 3,261 |
Awards for all | - | 1,150 | 1,150 |
Corre in Winter | - | 1,462 | 1,462 |
Edinburgh University H&W Research Fund | - | 7,000 | 7,000 |
Enhance NewScots | - | 229 | 229 |
Inspire Project | - | 10,628 | 10,628 |
The WEA | - | 2,400 | 2,400 |
GCAS | - | 1,686 | 1,686 |
Swansea University | - | 2,320 | 2,320 |
Enliven Fund | - | 145 | 145 |
Octopus Fund | - | 7,736 | 7,736 |
17,783 |
TOTAL FUNDS | 34,414 | 276,593 |
The Welcoming Association |
Notes to the Financial Statements - continued |
For The Year Ended 31 March 2023 |
12. | MOVEMENT IN FUNDS - continued |
Net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 29,975 | (11,291 | ) | 18,684 |
Fixed assets fund | - | (2,053 | ) | (2,053 | ) |
( |
) | 16,631 |
Restricted funds |
Tudor Trust | 50,000 | (52,769 | ) | (2,769 | ) |
CEC Syrian Resettlement Programme | 70,975 | (44,805 | ) | 26,170 |
Health Inequalities Programme | 15,800 | (34,083 | ) | (18,283 | ) |
Big Lottery | 44,582 | (51,289 | ) | (6,707 | ) |
Henry Smith Charity | 20,250 | (36,682 | ) | (16,432 | ) |
Scottish Refugee Council | 500 | (500 | ) | - |
Robertson Trust | 7,500 | (7,831 | ) | (331 | ) |
St Giles | 3,100 | (173 | ) | 2,927 |
3Ds Project - Scottish Government | 8,912 | (13,721 | ) | (4,809 | ) |
Afghan Womens English Classes | 4,193 | (932 | ) | 3,261 |
Awards for all | 9,978 | (8,828 | ) | 1,150 |
Corre in Winter | 2,438 | (976 | ) | 1,462 |
Edinburgh University H&W Research Fund | 7,900 | (900 | ) | 7,000 |
Enhance NewScots | 60,000 | (59,771 | ) | 229 |
Inspire Project | 34,203 | (23,575 | ) | 10,628 |
JCS > 25 | 6,996 | (6,996 | ) | - |
Redress Fund | 8,471 | (8,471 | ) | - |
The WEA | 2,400 | - | 2,400 |
GCAS | 5,965 | (4,279 | ) | 1,686 |
Swansea University | 2,320 | - | 2,320 |
Enliven Fund | 2,500 | (2,355 | ) | 145 |
Octopus Fund | 9,524 | (1,788 | ) | 7,736 |
( |
) | 17,783 |
TOTAL FUNDS | ( |
) | 34,414 |
The Welcoming Association |
Notes to the Financial Statements - continued |
For The Year Ended 31 March 2023 |
12. | MOVEMENT IN FUNDS - continued |
Comparatives for movement in funds |
Net | Transfers |
movement | between | At |
At 1.4.21 | in funds | funds | 31.3.22 |
£ | £ | £ | £ |
Unrestricted funds |
General fund | 93,018 | 21,845 | (7,364 | ) | 107,499 |
Fixed assets fund | 6,874 | (2,714 | ) | 1,269 | 5,429 |
99,892 | 19,131 | (6,095 | ) | 112,928 |
Restricted funds |
Tudor Trust | 16,015 | (5,116 | ) | - | 10,899 |
CEC Syrian Resettlement Programme | 9,591 | 40,159 | - | 49,750 |
Health Inequalities Programme | 13,306 | 8,888 | - | 22,194 |
Big Lottery | 28,954 | (15,718 | ) | - | 13,236 |
Henry Smith Charity | 22,868 | (139 | ) | - | 22,729 |
Scottish Refugee Council | 46 | - | - | 46 |
Welcoming Choir | - | (300 | ) | 300 | - |
Equality Fund | 3,077 | (7,496 | ) | 4,419 | - |
Community Jobs Scotland | - | (5 | ) | 5 | - |
Climate Challenge Fund | 8,512 | (8,512 | ) | - | - |
Covid-19 Emergency Fund | - | (406 | ) | 406 | - |
Immediate Priorities Fund | - | (341 | ) | 341 | - |
Migrant Exchange | - | (230 | ) | 230 | - |
Robertson Trust | - | 1,576 | - | 1,576 |
SRC Covid Response Fund | 2,230 | (2,230 | ) | - | - |
Welbeing Fund | 4,417 | (3,358 | ) | 341 | 1,400 |
St Giles | 800 | 1,630 | 53 | 2,483 |
3Ds Project - Scottish Government | - | 4,938 | - | 4,938 |
109,816 | 13,340 | 6,095 | 129,251 |
TOTAL FUNDS | 209,708 | 32,471 | - | 242,179 |
The Welcoming Association |
Notes to the Financial Statements - continued |
For The Year Ended 31 March 2023 |
12. | MOVEMENT IN FUNDS - continued |
Comparative net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 29,792 | (7,947 | ) | 21,845 |
Fixed assets fund | - | (2,714 | ) | (2,714 | ) |
29,792 | (10,661 | ) | 19,131 |
Restricted funds |
Tudor Trust | 33,331 | (38,447 | ) | (5,116 | ) |
CEC Syrian Resettlement Programme | 61,199 | (21,040 | ) | 40,159 |
Health Inequalities Programme | 18,309 | (9,421 | ) | 8,888 |
Big Lottery | 39,980 | (55,698 | ) | (15,718 | ) |
Henry Smith Charity | 39,600 | (39,739 | ) | (139 | ) |
Welcoming Choir | - | (300 | ) | (300 | ) |
Equality Fund | 60,000 | (67,496 | ) | (7,496 | ) |
Community Jobs Scotland | - | (5 | ) | (5 | ) |
Climate Challenge Fund | 98,249 | (106,761 | ) | (8,512 | ) |
Covid-19 Emergency Fund | - | (406 | ) | (406 | ) |
Immediate Priorities Fund | - | (341 | ) | (341 | ) |
Migrant Exchange | - | (230 | ) | (230 | ) |
Robertson Trust | 7,500 | (5,924 | ) | 1,576 |
SRC Covid Response Fund | - | (2,230 | ) | (2,230 | ) |
Welbeing Fund | - | (3,358 | ) | (3,358 | ) |
St Giles | 2,283 | (653 | ) | 1,630 |
3Ds Project - Scottish Government | 12,043 | (7,105 | ) | 4,938 |
372,494 | (359,154 | ) | 13,340 |
TOTAL FUNDS | 402,286 | (369,815 | ) | 32,471 |
The Welcoming Association |
Notes to the Financial Statements - continued |
For The Year Ended 31 March 2023 |
12. | MOVEMENT IN FUNDS - continued |
Notes to the funds: |
The Fixed Assets fund - this corresponds to the net book value of the tangible fixed assets. Depreciation and the cost of disposals is charges to the fund and the cost of fixed assets purchased it transferred into the fund. |
Tudor Trust - funding towards the costs of the Director. |
CEC Syrian Resettlement Programme - funding from the City of Edinburgh Council to run and develop the Life Skills for Living and Working in Scotland programme and to develop and deliver a programme of cultural integration activities for the newly arrived Syrian refugee communities. |
Health Inequalities Programme - previously City of Edinburgh Council Health Inequalities Programme - now Edinburgh Integration Joint Board funding which covers the salary and costs of a part-time Health and Wellbeing Coordinator. |
Big Lottery - Welcoming Friendship befriending programme to support the social integration of migrants and refugees in Edinburgh. |
Henry Smith Charity - Welcoming Friendship befriending programme to support the social integration of migrants and refugees in Edinburgh. |
Equality Fund - Scottish Government Grant from the Promoting Equality and Cohesion Fund to help newly arrived migrants and refugees in Edinburgh. |
Climate Challenge Fund - grant awarded as part of their 'Welcoming a Greener Future' project for community Engagement and Integration, Home Energy Saving and Renewal programmes. |
St Giles - Financial support provided to enable The Welcoming to have a Hardship Fund open to those members in greatest need of household items and clothing. |
Robertson Trust - To support New Scots to access local services and engaging local mainstream organisations by providing examples of the living experiences of our users. |
The Welcoming 3Ds Project funded by the Scottish Government - To provide IT equipment and teach digital skills to Arabic speakers, provide English classes and 1 to 1 support. |
Transfers into restricted funds represent general funds used to further activity. |
Transfers from restricted funds represent the cost of fixed assets purchased and contributions towards overhead costs. |
The Welcoming Association |
Notes to the Financial Statements - continued |
For The Year Ended 31 March 2023 |
13. | RELATED PARTY DISCLOSURES |
14. | FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES |
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. |