The Directors present their annual report and financial statements for the year ended 31 March 2024.
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 Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019).
Aims of the charity:
The company offers a diverse range of youth provision and activities in the South West area of Edinburgh, with the primary aims:
To relieve poverty and disadvantage;
To advance learning; and
To further participation and citizenship.
The charity runs specific projects on behalf of its funders. Funding for the year ended 31 March 2024 included income from the following sources:
City of Edinburgh Council
Scottish Government Community Mental Health Fund
The Robertson Trust
Christina Mary Hendrie Trust
National Lottery Awards for All
KPE4
The Hugh Fraser Foundation
The Nancie Massey Charitable Trust
Cruden Foundation
Schools
Lothian Association of Youth Clubs
Youth Scotland
Bentley Advancing Life Chances
Tesco
Asda Foundation
Service objectives focused on:
Improve access to recreational opportunities for all young people and to challenge disadvantage and discrimination.
Promote the participation of excluded young people and create new opportunities to further their individual and collective interest.
Encourage young people to discover, explore and protect the natural environment.
Promote positive attitudes to learning and encourage young people to engage in new and existing learning opportunities.
Provide varied and flexible group work programmes informed by the needs and ideas of young people.
Ensure young people are assisted to access support most appropriate to their situation.
We are pleased to report that we have had another successful year, with our services continuing to grow; in particular our Individual Support and Groupwork services, and we have exceeded our target for Individual Support.
This year, we introduced the National Progression Award (NPA) in Youth Work, with 15 young people successfully completing the programme. Additionally, we became the first youth work organisation in Edinburgh to receive the Gold LGBT Youth Scotland Charter Award, marking our commitment to inclusivity. Our ongoing efforts to develop strong partnership links in Edinburgh have significantly shaped policy and practice in youth work. We have been actively involved in writing and launching the Edinburgh Youth Work Strategy, contributing to Youth Work in schools through YouthLink, and providing LGBT and RSHP training to other organisations. Our participation in various subgroups and associated works, including LAYC Board membership and the Edinburgh Children's Partnership Youth Work Working Group, whose aim is to increase community-based opportunities for Edinburgh's Children and Young People in safe spaces with trusted adults, underscores our dedication to collaborative efforts and enhancing youth services across the city.
Looking ahead, we have updated our 2024-27 Business Plan and introduced a new Strategic Plan for 2024-27, outlining our vision and goals for the future. These strategic documents will guide our continued growth and impact, ensuring that we remain responsive to the needs of young people and the community.
Result for the year
The financial statements show a deficit for the year of £29,850 (2023: £6,315) on restricted funds. There was a deficit of £31,335 (2023: £33,613) on unrestricted funds, giving an overall net deficit for the year ended 31 March 2024 of £61,185 (2023: deficit of £39,928). The directors are satisfied with this result, which represents expenditure on the Youth Agency’s charitable activities, funded by amounts brought forward from previous financial years.
The financial statements for the year ended 31 March 2023 were audited. For the year ended 31 March 2024, the directors have taken advantage of the exemptions available under applicable company legislation and charity legislation and have elected to dispense with an audit. These financial statements are unaudited and have been subject to Independent Examination in accordance with charity legislation.
Significant use of volunteers:
The company’s Board of Directors are all considered to be volunteers of the charity. A value for their contribution cannot be quantified; however without their services the charity would not function. The Youth Agency also has Volunteer Youth Workers.
Policy on reserves:
The level of reserves held by the charity is £437,952 (2023: £499,137) although included in this figure is funding for property costs, including the Youth Agency at 44 Dumbryden Drive, of £269,358 (2023: £279,337) being the historical cost of the charity’s buildings less depreciation to date charged on the original Pyramid Building and Annexe. See note 11 for more details. After excluding the reserves that are restricted for specific purposes as laid down by the donor, see note 15 for more details, and designated funds of £5,500 (2023: £31,730), the remaining unrestricted funds are £80,877 (2023 - £86,342).
It is the objective of the charity to maintain revenue reserves at a level commensurate with average annual charitable activities expenditure over the past 3 years to cover at least six months of running costs. It has been calculated that the charity would require free, uncommitted reserves at 31 March 2024 to cover the current average charitable activities cost of £82,964 to meet this reserve policy. The current level of reserves is in line with this reserves policy. The charity maintains restricted, designated and unrestricted funds.
The Board of Directors have considered the major risks to which the charity is exposed and have reviewed those risks and established systems and procedures to manage those risks. As part of this process the Directors have developed a business continuity plan and risk register that addresses continuity of service and safety of service users and staff, whilst preserving the security of confidential or sensitive information, should unexpected eventualities occur. In the plan the Directors consider information technology issues and communication matters together with managerial and staffing responsibilities covering a range of impact scenarios.
The charity plans to continue with its main objectives, and the strategy continues to be that outlined on pages 1 and 2.
The Charity is a company limited by guarantee, incorporated on 29 September 1997. The company is governed by the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Memorandum and Articles of Association.
The company was established under a Memorandum of Association, which established the objects and powers of the charitable company and is governed under its Articles of Association. Under those Articles, the members of the Board of Directors are elected to serve for a fixed term period of three years after which they can retire or offer themselves for re-election. Members of the company are entitled to elect “Directors” to the Board at the AGM.
The Directors who served during the year and up to the date of signature of the financial statements were:
None of the Directors has any beneficial interest in the company. All of the Directors are members of the company and guarantee to contribute £1 in the event of a winding up.
The decision making process is carried out at Board meetings. There have to be three Directors present for meetings to be quorate.
The induction process for new board members involves informal training by the existing members. The new member is also provided with the Articles of Association, role of a trustee, prior year financial statements and prior year Directors’ meeting minutes, Strategic Plan and policies.
The company is not affiliated with any other charitable organisation and has no related parties except as shown in the notes to the financial statements.
The Directors' report was approved by the Board of Directors.
I report on the financial statements of the Charity for the year ended 31 March 2024, which are set out on pages 5 to 17.
The Charity’s directors, who also act as trustees for the charitable activities of Wester Hailes Youth Agency, are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investments (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The Directors consider that the audit requirement of Regulation 10(1)(a) to (c) of the 2006 Accounts Regulations does not apply. It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Act and to state whether particular matters have come to my attention.
My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeks explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the financial statements.
In connection with my examination, no matter has come to my attention:
to keep accounting records in accordance with section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;
to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Wester Hailes Youth Agency is a private company limited by guarantee incorporated in Scotland. The registered office is 44 Dumbryden Drive, Edinburgh, EH14 2QR.
The financial statements have been prepared in accordance with the Charity's Articles of association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) 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)” (as amended for accounting periods commencing from 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 small charities 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. 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 or grantors 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.
Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Irrecoverable VAT is charged against the category of resources expended for which it was incurred.
Costs are allocated depending on the activity categories of the resources expended. No costs are apportioned.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
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.
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 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.
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.
Operating leases
Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.
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.
Income from donations and legacies of £4,394 (2023: £640) was unrestricted and £nil (2023: £2,000) was restricted.
City of Edinburgh Council
Other Funders
Designated income of £5,500 was received in 2024 (2023: £4,500) and is included in the total unrestricted funds of £6,500 (2023: £4,500).
Full details of restricted funding is shown in note 15.
Raising funds
Expenditure on raising funds was £12,927 (2023: £13,186) of which £12,927 was restricted (2023: £13,186) and £nil unrestricted (2023: £nil).
Direct costs
Youth work
Admin costs
Travel & transport
Premises costs
Expenditure on charitable activities of £42,229 was unrestricted (2023: £38,753) and £125,180 (2023: £112,964) was restricted.
The average monthly number of employees during the year was:
No employee received emoluments of more than £60,000.
The charity is exempt from tax on income and gains to the extent that these are applied to its charitable objects.
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 £7,557 (2023 - £7,555).
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
Land and Buildings funds - The funds represent brought forward funding in respect of the capital cost of buildings including property improvements and in accordance with the accounting policy for property depreciation, are written off over the remaining lease term.
City of Edinburgh Council Grant of £48,420 was received in the year.
Schools - £5,440 was received in the year from Forrester High School and Craigmount High School.
The Robertson Trust - £20,000 was received in the year.
LAYC - £1,010 was received in the year.
Scottish Government Community Mental Health Fund - £12,387 was received in the year. Plans are in place to spend this within a year of receipt.
KPE4 - £5,000 was received in the year.
The Hugh Fraser Foundation - £4,000 was received in the year.
Youth Scotland - £1,000 was received in the year.
Tesco - £1,000 was received in the year.
National Lottery Awards for All - £10,000 was received in the year.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
Unrestricted
Restricted
Unrestricted
Restricted
At the reporting end date the Charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The Charity occupies the Youth Agency which was built on leasehold land at 44 Dumbryden Drive, Edinburgh EH14 2QR that expires on 17 November 2051. Under the terms of the lease the land rent is £1 per annum.
There were no disclosable related party transactions during the year (2023 - none).