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 charitable company's governing document, 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)".
The company’s objectives are to relieve the needs of persons affected by problems relating to drug and alcohol use and in furtherance of this to:
i) develop and provide a city centre counselling and advice centre for drug and alcohol users, their friends and relatives in the city of Aberdeen and elsewhere.
ii) develop an information resource in the field of drug and alcohol use.
iii) develop training for professionals and volunteers in conjunction with agencies seeking to support drug users and their families.
iv) provide a consultative service to community projects, residential establishments, professionals and volunteers.
v) co-operate in the development of a common approach to the problem of drug use through liaison with relevant bodies.
vi) facilitate the development of community responses through the promotion of local awareness of alcohol and drug use.
Our operational delivery plan
ADA’s strategy has been devised with a long-term view covering the next ten years. Clearly context and circumstance can change rapidly and nowhere less so than in the field of substance use. ADA recognises the need for flexibility and to be able to react to changes out with its control. To that end, our Operational Delivery Plan focuses on delivering on the short to medium term as well as longer term strategic objectives. It will deliver in a Specific, Measurable, Achievable, Realistic and Timebound (SMART) framework in line with the timelines of its current contracts, local planning priorities and national strategy. Progress towards each of the key Strategic Outcomes identified will be assessed by the Delivery Plan. In our last report, we stated that the process of reviewing strategy with the intention of producing a new 10 year plan had commenced; the June board approved the draft document which is now in final stages of completion.
ADA has, for over 35 years, made a significant contribution to the development and delivery of services to substance users, their friends, and families in the Grampian area. This includes those affected by illicit drugs, over the counter prescribed medication, alcohol, and the increasingly widely available range of drugs that are sold via the internet. In addition to the delivery of direct services locally the organisation has expertise that means we are also regularly invited to contribute to national working groups and present at conferences.
Staffing
The multi-disciplinary staff team has a wide range of skills and expertise requisite to the delivery of services provided and effectively meet the complex needs of service users. This includes social work, nursing, mental health, community learning, counselling and lived experience. Through Aberdeen University, ADA awarded funding to be part of a summer Internship Programme for 2024. The funding was utilised to provide an HR Intern to help support the ongoing development of wellbeing led by the ADA Staff-Side Representatives group. As well as our main base in Hadden Street, Aberdeen, we continue to use additional space at Waterloo Quay in the city; the purpose of the let was to allow for the expansion of Recovery Services (Group work) and new Project activities such as RRSP, alongside more staff office space, interview space, and allowing access for all ADA Staff to other amenities available on-site such as Conference Meeting area, Gym and Café. ADA now also has interview space within the City’s Health Village campus. We have moved to a new location in Inverurie, a multi-agency delivery hub; similar integrated service bases are located in Banff, Peterhead and Fraserburgh.
Last year we mentioned the redesign of Medication Assisted Treatment (MAT) standards and access. As part of developing Recovery Services in City in line with the new Contract and the implementation of MAT Standards, staffing and management changes were implemented. Appointment of new Service Manager, creation of a Depute Service Manager, a newly defined Team Leader role and Senior Practitioner (Groupwork) put into place.
Following the successful achievement of gaining new contracts with both Aberdeen City and Aberdeenshire councils in 2023, this year has been focused on embedding new contracted Services for both these. This has been alongside the early 2024 priority of staffing and embedding new projects that had been officially awarded in late 2023 – ‘Residential Rehabilitation Support Project’ (RRSP) and ‘Grown Your Own Routes’ (both CORRA Foundation funded). ADA’s Aberdeenshire Service (new contract, year 1) officially commenced April 2023, and entailed a re-structure of staffing/location and management underway through 2023 into 2024, with some additional recruitment (completed October 2023). The Service Manager role has been put into place and filled successfully from July 2024. The new Aberdeen City contract commenced 1st December 2023 for a fixed 5-year period. This contract assimilated Children and Young People’s Work in a contract that was no longer sub-divided into specific ‘lots’ allowing more flexibility for the organisation in planning delivery. Subsequently the ADA staffing structure was able to be re-designed to suit the needs of the contract and new project developments by including the creation of new and updated staff and management roles.
This year has again been a productive, successful yet challenging year, with the need to adapt with appropriate actions and pace to the relaxing of pandemic conditions. The response of our staff teams has been exemplary in looking out for the wellbeing of both clients and colleagues.
The key to ADA’s strategy is always to challenge and develop service innovation, incorporating best practice, and the reaction of the organisation to the pandemic showed it to be successful and adaptive. As part of local reporting mechanisms with the Health & Social Care Partnership ADA have been able to report and demonstrate effective service delivery throughout all stages of the pandemic with no loss or reduction in service as a result.
Last year we reported being a support to the ‘Assertive Outreach’ (multidisciplinary emergency response) in relation to supporting high-risk clients at risk of fatal overdose and harm. ADA are now the lead third sector agency (effective from 30th June 2024) working as part of a multi-agency hub alongside statutory partners engaged to deliver critical community outreach responses to priority individuals in Aberdeen City – targeting non-fatal overdose and other high-risk eventualities; ADA has now taken over the oversight of this initiative.
ADA continues to develop and use technology where this can increase access or the efficiency of contact or information gathering. This includes the use of apps for both clients and staff.
At ADA we recognise that substance problems can affect all family members: both children who are affected by parental issues, as well as parents and partners of people with a substance use problem. Our Family Support Group is a peer led group, supported by staff, with fortnightly evening meetings held at the Timmermarket (NHS clinic).
At ADA we continually review and adapt our service responses to maximise impact and reach our commissioned contracts which are exacting and challenging. It remains the nature of substance use that the numbers of people with issues who could be reached and supported are at much lower levels than the underlying population (prevalence) that could benefit. Prevention, harms reduction and recovery are imprecise states that interact, evolve, and expand. ADA’s services need to interact with those from our partners and other agencies, we must report to diverse stakeholders and services need to be managed within exacting budgets laid out in the contract specifications. We intend to work to secure commissioners’ decisions to take up options for further years on our key contracts; and we look to actively develop additional sources of both restricted and unrestricted funds. Charities can so easily be driven off track by poor financing decisions or inadequate planning and budgeting. ADA consistently and securely plans, costs, and tracks its financial health, keeping in mind our reserves policy, holding to prudent forecasts, and reacting quickly to outturns. We aim to strengthen controls, provide effective budgeting and transparency of activities in the coming periods.
We are ready and eager to face those challenges and believe we have an appropriate management structure with the right individuals to take on these new challenges.
Following the successful achievement of gaining new contracts with both Aberdeen City and Aberdeenshire councils in 2023, this year has been focused on embedding new contracted Services for both these. This has been alongside the early 2024 priority of staffing and embedding new projects that had been officially awarded in late 2023 – ‘Residential Rehabilitation Support Project’ (RRSP) and ‘Grown Your Own Routes’ (both CORRA Foundation funded). ADA’s Aberdeenshire Service (new contract, year 1) officially commenced April 2023, and entailed a re-structure of staffing/location and management underway through 2023 into 2024, with some additional recruitment (completed October 2023). The Service Manager role put into place and filled successfully July 2024. The new Aberdeen City contract commenced 1st December 2023 for a fixed 5-year period. This contract assimilated Children and Young People’s Work in a contract that was no longer sub-divided into specific ‘lots’ allowing more flexibility for the organisation in organising delivery. Subsequently the ADA staffing structure was able to be re-designed to suit the needs of the contract and new project developments by including the creation of new and updated staff and management roles.
The surplus for the year amounted to £77,980 (2023 - surplus £111,826), after other recognised gains and losses. Excluding other recognised gains and losses, the operating surplus for the year was £80,980 (2023 - surplus £86,826).
The Board confirms that on a fund by fund basis the charitable company’s assets are available and adequate to fulfil its obligations.
It is the Board’s policy to build cash reserves over time towards a target of sufficient cash reserves to cover a minimum of one quarter’s total expenses which is budgeted to be £708,000. The year end cash at bank and in hand amounts to £630,031.
At the year end the level of unrestricted reserves amounted to £344,290 (2023 - £334,130). Of this £210,183 (2023 - £162,786) relates to tangible fixed assets and £681 (2023 - £397) relates to designated funds leaving £133,426 (2023 - £170,947) of free reserves which includes a pension deficit of £Nil (2023 - £nil).
The level of restricted reserves at the year end amounted to £320,244 (2023 - £252,424) as detailed in note 16.
A key risk facing the organization is the tendering process for new contracts with public sector bodies. Having gained new contracts in 2023, the ongoing short and medium term risk management issue is to deliver the requirements of the contract within the tight financial constraints; the longer term issue is the next commissioning cycle.
Last year we mentioned risks attached to the Covid pandemic. ADA has sought to adapt carefully as the Covid-19 regulations have been relaxed whilst learning from the different circumstances and revising ongoing operations where this is thought beneficial. COVID guidance remains under review both nationally and locally; we review our own policy in tandem to ensure compliance and gain any learning opportunities.
A heightened risk noted to the Governance Group is that of cyber security. Plans are in place to upgrade to a cloud based server and VOIP phone system.
Staff retention is a risk, given that our skilled and experienced employees have potential opportunities not only with other third sector organisations but also in government and health sectors. This concern is borne in mind as we tender for and negotiate new contracts.
The controls we have in place for any potential funding uncertainty include the strong relationship we have with funders and our capacity to evaluate, monitor, and report on service outcomes, forming relationships and opportunities with new funders and horizon scanning regarding changes and opportunities. The possibility in tendering for a contract in neighbouring Moray was considered but, after considering the detail and the context, was declined. ADA actively considers possible new contracts that fit with our objectives and where we may enhance the experience for service users.
We engage in local and national working groups and participate in Scottish Government consultations to ensure we continue to develop these relationships. We recruit flexible staff to adapt to changing services and services are reviewed regularly for any improvements. There are tight controls on spend and delegated budgets and a reserves policy that is reviewed annually.
Priorities for the year ahead include:
Ensuring ADA retains and builds on standards achieved resulting in securing contracts to remain the leading provider of alcohol and drug services in the Northeast.
As part of securing contracts, ADA will lead on its internal service re-design and proactively influence the wider agenda alongside its multiagency partners to help support and deliver MAT Standards and all national priorities to reduce alcohol and drug-related harms locally.
Further develop our recording processes and Case Management System tools which allows timely access to client records and enable better service planning through trends monitoring. This includes the use of Microsoft ‘PowerApps’ and other appropriate technologies to enhance accuracy and efficiency.
Continue to develop innovative methods of engaging the whole population, in-person, and ‘hybrid’, including the launch of a new, public facing, advice focused website.
Continue to invest in staff and volunteer training through in-house training and external opportunities to further develop talent within ADA.
Publishing ADA’s organisational 10-year strategy, following consultation with staff, service users and board members.
Alcohol & Drugs Action is a company limited by guarantee and is governed by its Memorandum and Articles of Association. It is a registered charity.
The directors who served during the year and up to the date of signature of the financial statements were:
The recruitment and appointment of new directors is overseen by the Board. In considering the appointment of any new directors, the Board will actively seek nominations from individuals who can bring expertise, experience and skills, particularly where there has been an identified gap. Consideration will also be given to the diversity of the board when making appointments.
The charitable company is administered by a Board of Directors who are its Trustees for the purposes of charity law. New directors must be elected unanimously by the existing directors and shall retire by rotation after a three-year period. The Board of Directors meets regularly to administer the charitable company’s activities. In addition, there are two Board subgroups covering the Governance and Funding areas of the organisation respectively with each director sitting on one of these groups as well as their place on the Board. The day to day running the charitable company is the responsibility of the Chief Executive Fraser Hoggan. The Chief Executive reports to the Board on a regular basis.
Induction and training of directors is viewed as an ongoing process. Relevant training opportunities are brought to the attention of the Directors as required. In addition, input by staff is a means by which Board Members update on practice issues relating to the charitable company’s activities.
We are committed to review our position on staff remuneration annually, in conjunction with staff and representatives. ADA set up a Staff-side consultation group and reviewed various aspects of salary and remuneration as well as allocation of annual leave increments (dependent upon various years of service achieved). A new salary structure was agreed and a cost of living pay rise implemented early in calendar 2024. The Staff-side group continues to meet monthly and has become a regular feature of consultation and feedback to the Management team and Board.
The directors all give freely their time and expertise without any form of remuneration or other benefit in kind (2023 - £Nil) but they are reimbursed for any expenses necessarily incurred as detailed in note 9 to the financial statements.
For details of related party balances and transactions, see note 20 of the financial statements.
In accordance with the company's articles, a resolution proposing that Henderson Loggie be reappointed as auditor of the company will be put at a General Meeting.
The directors' report was approved by the Board of Directors.
The directors, who also act as trustees for the charitable activities of Alcohol & Drugs Action, are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice.
Company law requires the Directors to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they 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 year.
In preparing these financial statements, the directors are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP (FRS102);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company 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 charitable company and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and disseminations of the financial statements and other information included in annual reports may differ from legislation in other jurisdictions.
Opinion
We have audited the financial statements of Alcohol & Drugs Action (the ‘charitable company’) for the year ended 31 March 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the Directors' (who are also the Trustees of the charitable company for the purpose of charity law) 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 Directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the directors' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and
the directors' report included within the directors' report has been prepared in accordance with applicable legal requirements.
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 directors' report included within the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:
adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the directors' report and from the requirement to prepare a strategic report.
As explained more fully in the statement of directors' responsibilities, the directors 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 directors 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 directors 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 directors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
We have been appointed as auditor under Chapter 3 of Part 16 of the Companies Act 2006 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Acts and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud
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:
As part of our planning process:
We enquired of management the systems and controls the charitable company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. Management informed us that there were no instances of known, suspected or alleged fraud;
We obtained an understanding of the legal and regulatory frameworks applicable to the charitable company. We determined that the following were most relevant: Health and safety, Care Inspectorate and OSCR requirements; Data Protection Act 2018; employment law (including payroll and pension regulations), and compliance with the UK Companies Act, Charities and Trustee Investments (Scotland) Act 2005 and the Charities Accounts Regulations 2006;
We considered the incentives and opportunities that exist in the charitable company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetrated, and tailored our risk assessment accordingly; and
Using our knowledge of the charitable company, together with the discussions held with management at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.
The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
Inquiry of management about any known or suspected instances of non-compliance with laws and regulations and fraud;
Reviewing minutes of board and sub-committee meetings;
Reviewing the charitable company’s policies and procedures in relation to health and safety, and reviewing the terms and conditions included within key funding agreements;
Reviewing correspondence and inspection reports from the Care Inspectorate;
Challenging assumptions and judgements made by management in their significant accounting estimates, in particular the accounting of the defined benefit pension scheme, the valuation of tangible fixed assets, the valuation and recoverability of debtors, and the application of accruals and deferred income; and
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.
Owing to the inherent limitations of an audit, there is unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charity’s trustees, as a body, in accordance with regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members and trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company, the charitable company’s members as a body,and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Status of company and liability of members
On the winding up of the charitable company every member has undertaken to contribute to the assets of the charitable company for the payment of the debts and liabilities and of the cost of winding up of the charitable company, such amount as may be required not exceeding five pounds. If the winding up occurs within one year of a member ceasing to be a member then the above applies for the debts and liabilities of the charitable company contracted for before he ceased to be a member.
Alcohol & Drugs Action is a company limited by guarantee incorporated in Scotland. The registered office is 7 Hadden Street, Aberdeen, AB11 6NU.
The financial statements are prepared under the historical cost convention as modified by the revaluation of certain fixed assets and include the results of the operations of the charitable company as indicated by the Director's report, all of which are continuing.
These financial statements have been prepared in accordance with applicable accounting standards and the Statement of Recommended Practice Accounting and Reporting by Charities, preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), and comply with the Companies Act 2006, the Charities and Trustees Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2005 (as amended),
The charitable company meets the definition of a public benefit entity under the FRS 102.
The financial statements are prepared in sterling, the functional currency of the Charitable company. Monetary amounts in these financial statements are rounded to the nearest £1.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The financial statements have been prepared on a going concern basis. The directors have considered relevant information, including the annual budget, forecast cash flows and the impact of subsequent events in making their assessment. The directors have also taken into consideration the potential impact on the charity of possible future scenarios arising from high inflation levels, general economic conditions, and the tendering process for future contracts. Forecast future cash flows have been prepared taking into account the future contracts and funding in place.
Based on these assessments, which cover at least 12 months from the date of approval of these financial statements. and having regard to the resources available to the charity company, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and financial statements.
In the Statement of Financial Activities, funds are classified as either restricted funds or unrestricted funds, defined as follows:
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the Directors.
Designated funds are unrestricted funds that have been set aside by the Directors for particular purposes.
Restricted funds can only be used for particular restricted purposes within the objects of the charitable company. 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.
Transfers are made between unrestricted and restricted funds of the surplus/deficit remaining on completion of a project.
All income is recognised once the charitable company has entitlement to the income, it is probable that the income will be received and the amount of income can be measured reliably.
When income has related expenditure the income and related expenditure are reported gross in the SOFA.
Income from Charitable Activities
Grant Income - income from grants, including capital grants, is included as income when it is receivable except where the charitable company has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period. In these circumstances income is deferred until those periods.
Service Level Agreements - income from service contracts is recognised at the point it becomes due under the terms of any agreement.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charitable company; this is normally upon notification of the interest paid or payable by the bank.
The contributions made by volunteers to the charitable company have not been recognised in the financial statements due to the difficulty in measuring the financial impact of their support.
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charitable company to that expenditure, it is probable that a settlement will be required and the amount of the obligation can be measured reliably.
All expenditure is included on an accruals basis. Irrecoverable VAT is included in the related expenditure,
Charitable activities include all costs relating to activities where the primary aim is part of the objects of the charitable company, including support costs. Activities undertaken directly include costs which are directly attributable to the specific projects, the primary/main cost being salaries for the substance use workers.
Governance costs comprise costs for the running of the charitable company itself as an organisation and are primarily associated with constitutional and statutory matters.
Redundancy payments are included within the financial statements during the year in which the employment contract ceased.
Heritable property is held at fair valuation. The cost or valuation of fixed tangible is depreciated at the following annual rates in order to write off each asset over its estimated useful life.
Items purchased exceeding £1,000 are capitalised in the year.
Cash at bank includes cash held in a deposit or similar account.
The charitable company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
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.
Creditors and provisions are recognised where the charitable company has a present obligation resulting from a past event that will probably result in a 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.
Financial liabilities are derecognised when the charitable company’s contractual obligations expire or are discharged or cancelled.
The charitable company is exempt from corporation tax on its charitable activities.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
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 company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period in which they relate.
Some member of staff are members of the North East Scotland Pension Fund (NESPF) which is a defined benefit pension scheme. Contributions to the scheme are advised by the Scottish Public Pension Agency,
The costs of providing this pension are charged to the Statement of Financial Activities on a consistent basis over the working life-time of the members. These costs are determined by a qualified actuary and any variations from the regular costs are spread over the remaining working life-time of the current members.
Defined benefit pension scheme assets are included at market value and this is compared to the present value of the scheme liabilities using a projected unit method and discounted at the current rate of return. Changes in the net defined benefit liability arising from employee service rendered during the period, net interest on net defined liability, benefit charges and settlements during the period are recognised in expenditure,
Remeasurement of the net defined benefit asset is recognised in other recognised gains and losses in the period in which it occurs. Any asset resulting is limited to the present value of available refunds or reductions in future contributions to the plan.
Tangible fixed assets are depreciated over a period to reflect their estimated useful lives. The applicability of the assumed lives is reviewed annually, taking into account factors such as physical condition, maintenance and obsolescence. Fixed assets are also assessed as to whether there are any indicators of impairment, with freehold property being revalued regularly.
Credit control is an important function which requires assessment, on an ongoing basis, of the recoverability of amounts due from debtors. Where recoverability is in doubt, the directors will adequately provide against this specific debt and will arrive at such conclusions based on the knowledge of the debtor and their "ability to pay". The directors adopt a prudent approach to credit control.
Directors estimate the requirements for accruals using post year end information and information available from detailed budgets, This identifies costs that are expected to be incurred for services provided by other parties. Accruals are only released when there is a reasonable expectation that these costs will not be invoiced in the future.
Deferred income relates to funding received or invoiced in the form of grants and service level agreements which cover a period spanning the year end or have performance related conditions. The directors estimate the deferred income in relation to grants and service level agreements by pro rating the funding amount over the period of support or where appropriate, depending on the performance conditions stipulated in the agreements.
The charitable company has obligations to pay pension benefits to certain employees. The costs of these benefits and the present value of the obligation depends on a number of factor, including; life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Directors estimate these factors in determining the net pension position with help from the pension scheme actuaries, The assumptions reflect historical experience and current trends
Grants and Donations
Charitable Activities
Foyer Aberdeen costs
Other expenses
Telephone, mobile and broadband
Heat and light
Insurance
Rates and water
Rent
IT Software and support costs
Bank charges
Professional fees
Loss on disposal of fixed assets
Average number of employees in year (based on headcount):
There were no employees whose emoluments as defined for taxation purposes amounted to £60,000 for the year ended 31 March 2024 nor for the year ended 31 March 2023.
Key management remuneration
The remuneration of key management in the year, including employer's pension contributions amounted to £200,182 (2023 - £164,665).
The freehold property was revalued as at 31 March 2024 at £140,000 by FG Burnett. As this valuation is in line with the carrying value no adjustment has been applied to the financial statements.
The revaluation reserve within the financial statements reflects the revaluation as at 31 March 2020 at £160,000, and this revaluation was incorporated in the financial statements at March 2020. The value of the £160,000 includes non-depreciable land of £30,000 (2023 - £30,000).
The bank holds a standard security over the premises at 5 - 9 Hadden Street, Aberdeen.
Deferred income is included in the financial statements as follows:
The deferred income in the year relates to income received for projects relating to the following year, which have performance conditions and repayments provisions attached.
The charitable company participates in the North East Scotland Pension Fund (NESPF). The scheme is a fully funded multi-employer defined benefit scheme. The assets of the scheme are held separately from those of the charitable company being invested in a fixed fund. The scheme is closed to new members. The pension cost charge represents contributions payable by the company to the funds and amounted to £7,591 (2023 - £7,031). At the year end, £1,022 (2023 - £748) was outstanding and is included in other creditors.
Following on from prior actuarial valuations a valuation of the fund was carried out during the year as at 31 March 2024. This was conducted by a professionally qualified independent actuary using the project unit method.
The assumed life expectations on retirement at age 65 are:
The actual return on plan assets was £16,000 (2023 - £12,000).
Aberdeen City Council has agreed to act as guarantor for any unfunded liabilities in respect of Alcohol & Drugs Action.
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.
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.
Designated funds are unrestricted funds that have been set aside by the Directors for particular purposes. During the current year £305 was received from ADA Women's Group During the prior year £287 was received from Woodside Bowling Club, Aberdeen, designated to fund Volunteer training in the city.
At 31 March 2024 the charitable company was committed to making the following payments under non-cancellable operating leases:
The Chief Executive is also a Director of Aberdeen in Recovery (AiR). ADA incurred costs of £nil (2023 - £5,000) in the year in relation to shared accommodation with AiR. All such transactions are at arms-length and the Chief Executive removes himself from meetings if there is a possibility of any conflict of interest. There was a balance of £nil (2023 - £2,500) due to AiR at the year end.
The charitable company is controlled by the directors.
The charitable company had no material debt during the year.