The Board of Directors present their report and accounts for the year ended 31 March 2024.
The financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Companies Act 2006, the Memorandum and Articles of Association, 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).
Hearts & Minds is a registered Scottish charity (no. SC027040); established in 1997 to promote improvement in the quality of life for children and adults in hospitals, hospices, care homes and school settings. The charity delivers three participative arts-in-health programmes: the Clowndoctors programme for children in hospitals and hospices (launched in 1999) the Elderflowers programme for older people living with dementia (launched in 2001) and the Clowndoctors in the Classroom programme for children and young people in schools for those with additional support needs.
Vision
Our vision is a Scotland that embraces playfulness, fosters healing and cultivates positive human connection, where joy, compassionate care and meaningful relationships are readily accessible to all.
Mission
Hearts & Minds exists to provide, promote and develop therapeutic clowning in various settings throughout Scotland. We aim to bring joy, comfort, connection and emotional support to individuals facing health challenges, have additional support needs, or adults living with dementia. By enhancing healthcare and education experiences for children and young people, families, adults, and staff, we improve their well-being and enrich their quality of life.
We continue to increase the number of visits delivered across Scotland. We have grown each of our 3 programmes. From delivering 470 visits last year we are delighted to report that we delivered 553 visits across Scotland with 8500 unique and tailored interactions across Scotland
In addition to our Clowndoctor programme, our Elderflowers have also resumed their weekly visits to the residents at Findlay House in Edinburgh. This marks a crucial step in our long-term strategy to expand and enhance our Elderflowers programme, by increasing our presence in healthcare units
We have been successful in fulfilling our strategic objectives, as set out in our 2023 Strategic Plan: heartsminds.org.uk. In summary, these objectives are to deliver our programmes to the highest quality and to work to expand these programmes, promoting the understanding and acceptance of therapeutic clowning. We have also been particularly active in this period in improving and developing our approach to the monitoring and evaluation of our programmes.
Programme delivery 2023-24
Programme | Visits | Interactions. | Units |
Clowndoctors | 289 | 3680 | Edinburgh Dundee, Glasgow, CHAS hospices |
Clowndoctor in the Classroom | 177 | 2737 | Fairview, Mavisbank, Beatlie, Royal Blind School, Oaklands, Perth Academy |
Elderflowers | 87 | 783 | Borders General Hospital, Findlay House, Edinburgh |
Total | 553 | 8500 |
|
Expanding the Clowndoctor Team
It has been clear from previous years that to continue growing and supporting more children and adults across Scotland, Hearts & Minds needs a full complement of trained artists to meet the increasing demand for our services. We were therefore delighted and very grateful to receive an award of £28,693 from Creative Scotland to recruit, train and mentor four freelance practitioners to join our team of freelance practitioners and become Clowndoctors.
After a rigorous and exhaustive selection process, which included open days and workshops for artists to learn about Hearts & Minds and explore the work of the Clowndoctors,. We selected performers for a further workshop and interview and finally identified four artists to train.
The new artists then went on to receive 18 days of training, including:
Training in basic clown skills and techniques: rhythms, improvisation character, the flop, music, non-verbal play etc.
Skill specific training - puppetry, object manipulation, magic, music etc.
Training in therapeutic clowning skills and developing good partnerships
Training in child development and age specific clowning
Training in common childhood medical illnesses and pathologies
Training around the needs of people facing dementia
How to work within healthcare units and with healthcare staff
Observation days in the healthcare units and schools
Creating Clowndoctor and Elderflower characters
Following completion of their training, each artist received mentoring from experienced practitioners and completed 50 visits on hospital wards and ASN schools before becoming fully-fledged Clowndoctors
We are therefore proud and delighted to introduce our 4 new Clowndoctors: Dr Dan De Lion, Dr Pip, Dr Pocket and Dr Biscuit.
Evaluation Report.
Hearts & Minds commissioned Dr Denise Milne to evaluate the impact of therapeutic clowning across each of our 3 programmes.: The scoping exercise included full-day observations of practitioners across all of the units in which we work and a review of existing evaluation methods.
The report aimed to highlighted the outcomes of the work, providing insights for the charity's strategy to showcase the unique impact of the services. It included a literature review to contextualise the practice, diary entries from observations, and a discussion of common themes and impacts observed.
The report concluded with strategic recommendations and a sample evaluation framework, intended as a foundation for further development.
From the work with Dr Milne, we have created bespoke evaluation frameworks for each programme and developed clear outcomes and impact measurement tools to ensure more robust monitoring and evaluation processes.
European Federation of Hospital Clown Organisations (EFHCO)
Hearts & Minds is proudis a proud to be one of eight founding members of the European Federation of Hospital Clown Organisations (EFHCO). EFHCO members meet twice a year for artistic, organisational and fundraising exchanges. The aims of EFHCO are to provide a quality benchmark for the work of clowning in the healthcare environment; enable exchanges within the EU; build awareness of the work that they do across the continent; conduct and publish research findings and share best practice. There are currently 15 full members and 4 associate members across Europe.
We attended the annual General Assembly, held this year in Mechelen, Belgium. This was attended by representative from Rote Nasen (Austria), Clinclowns (Belgium), Sairaalaklovnit (Finland), Le Rire Medecin (France), KlinikClowns Bayern (Germany), Fondazione Theodora (Italy), Dottor Sorriso (Italy), CliniClowns Nederland (Netherlands), SykehusKlovnene (Norway), Operacão Nariz Vermelho (Portugal), ClownMedicin Karolinska (Sweden), Fondation Theodora (Switzerland), Hopiclowns Genève (Switzerland).
Hearts & Minds have agreed to host the General Assembly in 2024 which will be held in Edinburgh from 1st – 4th October 2024.
During the year, the charity received income of £409,245 and had an expenditure of £447,367. Total funds held at 31st March 2024 amounted to £194,431 of which £96,643 were held as available reserves. Hearts & Minds operations produced a deficit for the year of £38,122.
Reserves Policy
The trustees of Hearts & Minds have reviewed the organisation’s need to generate free financial reserves in accordance with Charity Commission’s guidance. In the trustees’ view Hearts & Minds needs free reserves in order to:
maintain sufficient funds to enable operational activities to be maintained, taking account of potential financial risks, uncertainties and contingencies that may arise from time to time.
provide the financial resources to enable investment in resources and equipment to enhance the range of services Hearts & Minds provides.
In light of the above, Hearts & Minds aims to maintain a target level of free reserves of three months average expenditure, which equates to £96,174. The current level of free reserves meets this target. Restricted and designated funds are excluded from the free reserves calculation.
This year we experienced a second consecutive year with a financial deficit. This follows a surplus of £108,278 at the end of 2022, largely due to Scottish government support in response to COVID-19. Recognising the need for a sustainable long-term strategy, we decided to reinvest these additional funds in key areas critical to our future growth. Specifically, we focused on strengthening our financial controls, developing a more engaging and vibrant website, recruiting new artists, and implementing robust monitoring and evaluation systems. These strategic investments are designed to support our mission and ensure a sustainable future for Hearts & Minds.
Risk Management
The Trustees have a risk management strategy which comprises of:
Trustee Alan Cameron reviewing the risk register in detail with the CEO every quarter in advance of board meetings.
review of the risk register quarterly, as part of every board meeting of the Board of Trustees, which includes looking at the principal risks and uncertainties that the charity faces;
establishment of policies, systems and procedures to mitigate those risks identified in the risk register.
implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise.
Governing Document
Hearts & Minds is a company limited by guarantee governed by its Memorandum and Articles of Association dated 19 September 1997.
The Trustees who served during the year were:
Appointment of Trustees
New Trustees are appointed by existing Trustees or through an open recruitment process. They are selected based on their lived and/or work experiences, their personal and/or professional skills, their commitment to the charity and its values.
New Trustees undergo an orientation to brief them on: their legal obligations under charity and company law, the Scottish Charity Regulator’s guidance on trustee duties, and inform them of the content of the Memorandum and Articles of Association, the committee and decision-making processes, the business plan, past and recent financial performance of the charity.
Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.
Organisational structure
Hearts & Minds is led by Chief Executive Officer Sean Donnelly. The CEO is appointed by the Trustees to manage the day-to-day operations of the charity. To facilitate effective operations, the CEO has delegated authority, within terms of delegation approved by the Trustees, for operational matters including finance, employment and artistic performance related activity.
The CEO is supported by a team that consists of:
Artistic Leads, Fiona Ferrier, Rachel Colles
Finance and Admin Officer, Janice Taylor
Marketing & Communications Officer, Shirley Monteith
Digital Engagement Officer, Ben Winger
Office Manager, Ruth Butterworth
Freelance artists
Our Clowndoctors are carefully selected professional arts practitioners who are specially trained to work in a healthcare environment with vulnerable people. They use many techniques including improvisation, music and rhythm, song, dance, magic, puppetry, games and storytelling to engage with each child.
Our Elderflowers are carefully selected professional arts practitioners who are specifically trained to work in healthcare environments with vulnerable people. It takes a person with special skills, sensitivity and empathy to become an Elderflower. They need to be able to improvise, sing and play, but also have the experience and maturity to judge the mood and engagement level of each participant and to tailor each visit appropriately. Respecting the dignity of participants is a central principle of the Elderflowers programme.
The directors' report was approved by the Board of Directors.
The directors, who also act as trustees for the charitable activities of Hearts and Minds Limited, are responsible for preparing the Directors' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the Directors to prepare accounts 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 accounts, the Directors are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent; and
- prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Directors 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 accounts comply with 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.
I report on the financial statements of the charity for the year ended 31 March 2024, which are set out on pages 8 to 18.
The charity's trustees (who are also directors of the company for the purposes of company law) are responsible for the preparation of the accounts in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006, and they consider that the audit requirement of Regulation 10(1)(a) to (c) of the Accounts Regulations does not apply. It is my responsibility to examine the accounts as required under section 44(1)(c) of the Act and to state whether particular matters have come to our attention.
My examination was carried out in accordance with the Statement of Standards for Reporting Accountants and Regulation 11 of the Charities Accounts (Scotland) Regulations 2006. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeks explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the accounts.
In connection with my examination, no matter has come to my attention:
to keep accounting records in accordance with section 44(1)(a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and
to prepare accounts which accord with the accounting records and comply with the accounting requirements of Regulation 8 of the 2006 Accounts Regulations and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities;
to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Hearts and Minds Limited is a private company limited by guarantee incorporated in Scotland. The registered office is Lower Ground Floor, 4 Castle Terrace, Edinburgh, EH1 2DP.
The financial statements have been prepared in accordance with the charity's [governing document], 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)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the Directors have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the Directors 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.
Expenditure is recognised when a liability is incurred
Charitable activities include expenditure associated with the programmes and include both direct and support costs relating to these activities.
Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.
Support costs include central functions and have been allocated to the charitable activity on a basis consistent with their use.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
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.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
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.
Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Cash at bank and in hand
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
Creditors
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
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 experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Grants receivable
Practitioner Fees
Travel & Subsistence
Resources
Consultants
Recruitment
Other costs
Training and Supervision
Insurance
Repairs and maintenance
Postage & stationery
Telephone
Sundry expenses
Subscriptions
Bank charges
Rent and utilities
The average monthly number of employees during the year was:
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 £2,772 (2023 - £2,423).
There were no disclosable related party transactions during the year (2023 - none).