The trustees 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 Memorandum and Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
The organisation is a charitable Company Limited by Guarantee, founded in 1997, incorporated on 24 May 2000 and registered as a charity on 25 May 2000. 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.
Challenges Facing our Community
Demand for our referred services continued to be high, with young people struggling with their mental health and many not engaging with school. With rising costs, families in our community experienced increased financial hardship. As well as providing emotional support and signposting to specialist organisations, we provided direct financial assistance.
For the third consecutive year, PYCP received £16000 in grants from Forth One Cash For Kids. This funding was a lifeline for families in need throughout the year, helping them secure basic necessities like food, heating, and winter clothes. The aid was given out in the form of supermarket vouchers from Farmfoods and Morrisons Supermarket, which were sent to families via email every week for a month. This arrangement allowed families to free up other income to go towards utilities such as gas and electricity, and to purchase warm clothing for their children.
We also continued with our “Teen Boutique” pop up shops across the year, where young people and families could buy high quality, low cost clothing, shoes and accessories.
Objects of the Charity, Principal Activities and Organisation of our work
The charity’s principal activity is to offer children and young people aged between 5 and 18 years old residing in the “small North” area of the North West Locality in Edinburgh an innovative programme of personal and social development. It provides opportunities to pursue activities and interests, not as an end in themselves, but as part of a wider development process through which children and young people learn about themselves and their relationship with the society in which they live.
The main area of charitable activity is the provision of youth and children’s services in Pilton and surrounding areas, North West Edinburgh.
Open Groups and Clubs
We provided open groups and clubs at least 5 days and evenings per week in our centre. For our younger children aged 5 to 8, we continued to include a play based approach which has many benefits for child development. In the last year we made regular use of the Community Garden at the rear of our building, with children enjoying planting vegetables, growing berries, making jam and learning about ecosystems.
We offered a weekly mixed activity open club for ages 9 to 11, where children played sports and did cooking and art activities. Our weekly attendance was as high as 77 young people, showing how popular this provision is.
We also offered a range of youth work activities for ages 12 – 18, to help young people develop skills, explore issues and reduce risk taking and harmful behaviour. They were also able to meet with friends in a safe space and get advice and support from youth workers. This included our Tuesday evening Girls Group, our Wednesday Drop in for age 12+ and our Friday Night Hub for ages 12+. In our Friday Hub, we had attendance as high as 110 young people in one session.
We worked with a range of partners in the last year including a year-long project with Imaginate, the National organisation in Scotland that presents theatre and dance for children and young people. We also collaborated with the National Museum of Scotland on a project focusing on climate change and sea pollution. This culminated in our children helping Maori-Scottish Artist George Nuku create a piece of art work exhibited at the museum.
Intensive Support
Our 1:1 support service worked with 50+ young people around a range of issues such as low self-esteem, difficulties with peers or family issues, all on a referred basis. The support uses a range of strategies and activities to engage young people, giving them a safe space to work through issues with a trusted adult. Most of our referrals came from Craigroyston High School, Broughton High School as well as Craigroyston, Ferryhill, Forthview and Granton Primaries. Our wellbeing support for age 12+ continued as part of the “BWell Together” partnership project where seven local organisations provide a wide range of mental health supports to children, young people and families.
Our group work included a programme based on the new National Youth Work Outcomes and Skills Framework. This incorporates Children’s Rights and aims to build confidence, resilience, coping skills and increase support networks. We did sessions on positive role models, managing emotions and reducing risk taking behaviour. We delivered this programme in partnership with Ferryhill Primary School.
We also continued with our “Roots and Branches” nurture group for age 12+ and supported socially isolated young people to come together to take part in fun activities, have support from workers with any worries or problems in their lives and learn new skills.
In January 2024 we developed an age 12+ Boys Group after learning that a number of S1-S4 boys from youth clubs were either not attending school or were on part-time timetables. Each week we provide some hot food and a safe space for young people to share their problems and get support from youth workers.
Our Family Support Service supported 25 children, parents and siblings in 2023/24 and we also developed a weekly group for parents called “Breakfast and Blether” where parents can get support from our Family Worker, build new friendships and have time to relax and try activities.
Volunteering Opportunities and Progression routes for young people:
We continued to provide opportunities for young people to develop employability and life skills, hosting trainee youth work placements as part of North Edinburgh Youth Work Consortium, setting up a weekly 16+ employability drop in and progressing with our “Learning to Lead” young volunteers programme. We also developed a Youth Committee where young people take a lead role in shaping our services and represent the views of other young people who come to PYCP.
Transactions and Financial Position
The net expenditure before other recognised gains and losses on ongoing activities for the year ended 31 March 2024 was £18,522 (2023: net income £58,479).
Reserves Policy
The Board continued to operate and develop Pilton Youth & Children’s Project strategy on the basis that the majority of our funds are operational and are required to be spent in the short term. However, the pandemic and subsequent changes to economic conditions highlighted the need for organisations across the third sector to consider their long-term sustainability.
On that basis, the priority of the Trustees is to ensure that there are sufficient funds in reserve to allow the continuous operation of the charity in the event of loss of funding to meet its short term cash flow requirements and match their risk management policy. To that effect, Pilton Youth & Children’s Project is able to operate and continue to deliver its critical services for a 9-month period even where it received no funding at all in that period which equates to £113,687. The free reserves held as at 31 March 2024 are £139,563 and therefore this is considered adequate for this purpose.
Risk Statement
The Management Committee has conducted a review of the major risks to which the charity is exposed. Where appropriate, systems or procedures have been established to mitigate the risks the charity faces. Significant external risks to funding have led to the development of a business plan that will allow for the diversification of funding and activities. Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects. Procedures are in place to ensure the Health and Safety of staff, volunteers, children and young people and visitors to the project.
Following an uncertain time regarding our funding from City of Edinburgh Council, we diversified our income sources and continued to be successful in fundraising from a range of Trusts and Foundations. We also continued to develop relationships with corporate partners, especially important in generating unrestricted funds and “in kind” support.
The directors who served during the year and up to the date of signature of the financial statements were:
Mark Wilson
Lauren Purdie (resigned 14/05/2024)
Jacqueline Michie
Morag Macpherson
Iain Batho
Allison Bertsch
Christopher Deegan
Lucy Frazer
Stephanie Gray
Secretary
Deborah McMillan
Key Management
Deborah McMillan - Business Manager
Lesley Ross - Project Manager
Laura McLaren - Project Manager
Bankers
The Royal Bank of Scotland plc
12 North West Circus Place
Edinburgh, EH3 6SX
Registered Office
The Greenhouse
33 West Pilton Brae
Edinburgh, EH4 4BH
Auditor
Thomson Cooper Accountants
3 Castle Court
Carnegie Campus
Dunfermline, KY11 8PB
Company Number SC207455
Charity Number SC003353
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 winding up.
Recruitment and Appointment of the Board of Directors
The Directors of the Company are also charity Trustees for the purposes of charity law and under the Company’s Articles are known as members of the Management Committee. Under the requirements of the Memorandum and Articles of Association the members of the Management Committee are elected to serve for a period of one year after which they must be re-elected at the next Annual General Meeting.
Organisational structure
Pilton Youth & Children's Project has a Management Committee of up to 15 members who meet regularly and are responsible for the strategic direction and policies of the charity. At present, the Committee has 8 members who are local residents or from a variety of professional backgrounds relevant to the work of the charity. The board meets 4 times a year (every 12 weeks) as well as additional sub-group meetings to focus on themes such as fundraising and strategic development. Our Board meetings are focused on a set template, including matters arising, Project Manager’s report (reporting on the service, strategic aspects, human resources and a fundraising update) and then a finance report from our Business Manager including updated management accounts and cash flow forecast for the next 12 months. Our management team provide monthly updates to the Chairperson and liaise with the Board on any ad-hoc issues and concerns.
Directors Induction and Training
Many of the Directors are familiar with the work of the charity, having had involvement either personally or professionally prior to joining the Board of Directors. New Directors are encouraged to meet with the management team to familiarise themselves with the charity and the context within which it works. Additionally at every Board meeting a member of the staff team will make a presentation on a piece of their work and answer questions.
There is an expectation the Directors attend our Open Days and visit our groups and clubs throughout the year. All new Directors are given our Memorandum and Articles of Association and our latest financial statements. Directors are invited to attend our review of service and in-service training. Feedback from new Directors suggests that they get all relevant information and that the charity is welcoming.
The trustees, who are also the directors of Pilton Youth & Children's Project for the purpose of company law, are responsible for preparing the Trustee's Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In accordance with the company's articles, a resolution proposing that Thomson Cooper be reappointed as auditor of the company will be put at a General Meeting.
The trustee's report was approved by the Board of Trustees.
Opinion
We have audited the financial statements of Pilton Youth & Children's Project (the ‘charity’) 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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
We have nothing to report in respect of the following matters in relation to which the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:
the information given in the financial statements is inconsistent in any material respect with the trustee's report; or
proper accounting records have not been kept; or
the financial statements are not in agreement with the accounting records; or
we have not received all the information and explanations we require for our audit.
As explained more fully in the statement of trustee's responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: existence and timing of recognition of income, posting of unusual journals along with complex transactions and non-compliance with laws and regulations. We discussed these risks with management, designed audit procedures to test the timing and existence of revenue and tested a sample of journals to confirm they were appropriate. In addition, we reviewed areas of judgement for indicators of management bias to address these risks.
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the officers and other management (as required by the auditing standards.
We reviewed the laws and regulations in areas that directly affect the financial statements including applicable charity and company law and considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.
With the exception of any known or possible non-compliance with relevant and significant laws and regulations, and as required by the auditing standards, our work in respect of these was limited to enquiry of the officers and management of the charity.
We communicated identified laws and regulations and potential fraud risks throughout our team and remained alert to any indications of non-compliance or fraud throughout the audit. However the primary responsibility for the prevention and detection of fraud rests with the trustees.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.
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 Section 44(1) (c) of the Charities and Trustees Investment (Scotland) Act and regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Thomson Cooper is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
designated
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
designated
Pilton Youth & Children's Project is a private company limited by guarantee incorporated in Scotland. The registered office is The Greenhouse, 33 West Pilton Brae, Edinburgh, EH44BH.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Grants
Total
Total
Room Hire and Minibus Hire
Muirhouse Youth Development Group
Total
Total
Travel Costs
Food, Activities and Crafts for Clubs
Volunteer Expenses
Residential Costs
Minibus Costs
Crisis Clothing, Food, Etc
Miscellaneous Activity Costs
Usage
Premises
Usage
Legal and Professional
Usage
Other Admin Costs
Usage
Rent, Water and Utilities
Usage
Repairs and Renewals
Usage
Cleaning, Waste and Gardening
Usage
Staff and Board Expenses
Usage
IT Software and Subscriptions
Usage
Office Costs
Usage
Bank Charges
Usage
Premises
Usage
Legal and Professional
Usage
Rent, Water and Utilities
Usage
Repairs and Renewals
Usage
Cleaning, Waste and Gardening
Usage
Staff and Board Expenses
Usage
IT Software and Subscriptions
Usage
Office Costs
Usage
Bank Charges
The average monthly number of employees during the year was:
The key management personnel of the charity comprise of the Business Manager and two Project Managers. The total amount of employee benefits received by key management personnel is £106,411 (2023 - £93,856).
An actuarial pension deficit was settled in the year ended 31 March 2017 and is due to be repaid in 2031-2032 financial year.
Deferred income is included in the financial statements as follows:
Baillie Gifford - funding to cover the cost of a children's worker
Cash for Kids (General Funding) - funding for Holiday programme and general activities
Cash for Kids - Winter Grant - funding for Crisis vouchers for families
CEC- grants under £10,000 - funding for School holidays
Children in Need - funding to cover the cost of a adventure play worker
Community Mental Health Fund - funding for the Youth Wellbeing Worker salary
First State Investments - funding for the Childrens' Worker salary
KPE4 - funding for the Volunteer Development Worker
Port of Leith Housing Association (POLHA) - funding for under 12s work in Granton.
CEC Intensive Support - funding for Bridges to Learning
CEC - Youth Work - funding for Youthzone
RS MacDonald - funding for the Intensive Support Worker salary
Sir Robert Alpine - funding for activities for clubs and groups
Walter Scott and Partners Limited - funding for roof repairs (£7,500) and for food and activities (£15,000)
Scottish Police Funding - Crisis funding grants for clothing
Holiday Provision - Activities and Food in school holidays
Youthlink - Activities in School holidays
Wood Foundation and Abrdn are the principal funder of YPI in Edinburgh, The Young Person’s Initiative. Royal High School pupils put forward a grant request from Wood Foundation for PYCP for food and activity costs.
Cash for Kids (Cost of Living Grants) - In response to the cost of living crisis hitting so many families this grant aims to provide emergency essentials that support the physical and mental well-being of children who are struggling. This includes food, clothing and household energy costs.
Fort Community Wing wound down their charity status and chose PYCP as one of the charities they wanted to donate their remaining funds to. It is to be used directly to support our service users.
These are unrestricted funds which are material to the charity's activities made up as follows:
Incoming resources
Resources expended
Transfers
Incoming resources
Resources expended
Transfers
Redundancy Payments - funds set aside specifically to cover the costs associated with potential redundancies. These funds are crucial for ensuring PYCP’s financial stability and sustainability during periods of organisational change or financial uncertainty. It helps us to meet our legal and contractual obligations to employees in the event of redundancies. By maintaining designated reserves for redundancy payments, we can navigate periods of change with greater confidence and continue to fulfil our mission without compromising our financial health. We regularly review the adequacy of the reserves to ensure they remain sufficient to cover the costs.
Capital Reserve - To ensure the long-term sustainability and functionality of our facilities, we have established designated reserves specifically for capital expenditures on our building. This reserve has been established equal to the value of funds tied up in tangible fixed assets. These reserves are essential for funding significant repairs, upgrades, and improvements that are necessary to maintain and enhance our building
Decarbonisation of Building - We are committed to environmental sustainability and reducing our carbon footprint by setting aside designated reserves for decarbonising our building. These funds are crucial for making our facilities more energy-efficient and environmentally friendly. Our reserves ensure we have the financial resources to implement decarbonisation initiatives, reducing carbon emissions and enhancing energy efficiency. This proactive planning demonstrates our commitment to sustainability and garners support from stakeholders and the community. We have assessed our building’s energy usage to identify improvement areas, aiming to reduce both carbon emissions and energy bills. Our plan includes projects like installing solar panels, upgrading insulation, and switching to energy-efficient lighting and heating systems. We have allocated sufficient funds based on detailed cost estimates and will regularly review and adjust the reserves to reflect changes in project scope, costs, and financial circumstances.
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases for office equipment, which fall due as follows:
There were no disclosable related party transactions during the year (2023 - none).
The charity had no debt during the year.