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 governing document, 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).
Our aim is to positively enhance the ageing process for elderly, isolated and vulnerable individuals and offer the very best health and wellbeing support.
Braid Health & Wellbeing provides a digital and physical space for everyone in need of support as they transition through life’s stages.
The year can be summarised well by stating that unforeseen challenges in the finance and funding arena were somewhat offset by the ongoing outstanding work of staff and volunteers.
In April of 2023, the way Braid H&W was funded by West Lothian Health & Social Care Partnership (HSCP) changed. This new way of Unit Cost allocation resulted in a significant decrease in the overall annual amount provided by the Partnership. The drop in funding from FY 2023 to FY 2024 was more than £210,000. (over 50%) At the same time, after a prolonged period where we had enjoyed a rent-free arrangement from West Lothian Council, a new levy was introduced and an annual rent more than £43,000 was requested.
The combination of a drop in key funding and a new request for rent payments provided somewhat of a ‘perfect storm’ in relation to financial difficulty. Braid’s Board and staff have worked hard to find cost savings and examine ways to generate increased income, however we can all appreciate the extent of the challenges faced with such a significant change to income.
Significant work is ongoing to examine opportunities to bridge the funding gap and provide a sustainable future for the organisation, although as can be seen from the report, we have reported a significant deficit this year. Our Senior Management Team have made a range of adjustments to our spending to reduce our cost base as far as possible, whilst of course still ensuring there are enough staff and facilities to provide a safe, high-quality service. On behalf of the Board, I would like to praise the senior team for their ongoing work in this matter.
On a more positive note, and despite all the challenges noted above, Management, Staff and Volunteers have worked tirelessly and selflessly to ensure that the high standards of service the community expect of Braid H&W have continued. The Board are very grateful to everyone for their diligence, fortitude and commitment.
Staff are proud of our ethos that clients are the heart of who we are. We strive to ensure that each client who attends is treated with a person-centred approach and that their individual needs are central to the care they receive. With the changing times and needs of people, we strongly believe that no person should be excluded from being able to be part of our amazing community. Our Services are now designed so that we can tailor the support for anyone who requires additional adaptations to meet their needs.
Clients can access services through a range of funded and part-funded options provided by West Lothian Council Social Work Department. We are particularly proud to have introduced a new service this year where clients who require 1 to 1 support can access our wide range of facilities and enjoy being a part of their community. This helps ensure that nobody in need is excluded from getting the support that they require.
In addition to Council funded places, we have further expanded our offering to private clients, by increasing the range of activities on offer. The in-house facilities and wide range of fun and engaging activities offered each week, provide an attractive package to private clients, which helps with funding services to people in the community who are not able to afford private access.
The Board has changed significantly this past year, with three new Trustees joining the group. The Board is currently made up of five individuals offering a range of experience in Finance, Healthcare, HR, Business and Senior Leadership across the Private, Statutory and Third Sectors.
The current Board are focused on a pragmatic, objective approach, taking decisions that position both the clients and valued staff as a priority. I would like to thank all Trustees for their contribution this year.
We are also mindful and respectful of the long heritage of the organisation and our presence in the community, where the work of our team has positively changed the lives of many people in West Lothian over the years. Braid is very much a community organisation.
For the year ended 31 March 2024, the Statement of Financial Activities shows an overall deficit of £141,866 (2023 - surplus £98,493).
This is made up of a deficit of £131,912 (2023 surplus - £116,149) on unrestricted funds and a deficit on restricted funds of £9,954 (2023 deficit - £17,656).
The amount of unrestricted funds excluding designated funds held at 31 March 2024 was £112,284 (2023 - £240,579).
Designated funds held at 31 March 2024 was £22,938 (2023 - £26,555).
Restricted funds held at 31 March 2024 was £2,774 (2023 - £12,729).
The funds are detailed in the notes to the accounts.
Reserves Policy
The Trustees are monitoring their policy whereby the unrestricted funds not committed or invested in tangible fixed assets by the charity is between three to six months of expenditure. At the year end the reserves amounted to around 2 months of expenditure and the Trustees are working to remedy this.
Risk Management
The Trustees have conducted a review of the major risks to which the charity is exposed. A risk register has been established and is updated at least annually. Where appropriate, systems or procedures have been been established to mitigate the risks the charity faces.
Plans for the future
Our financial future has been stabilised through the awarding of the WLC contract for day care, some efficiency savings and the continued development of our private clients.
This has been achieved against the loss of the previous level of council support and the imposition of a rent for the property. As a board we are optimistic that we have weathered the potential storm of reduced funding and higher costs through the measures we have already taken and we are still hopeful that our health and well being emphasis will still realise involvement of other community groups which will provide us with other income streams.
Braid Health & Wellbeing Ltd (previously known as Braid House Day Centre Limited) is registered with Companies House as a company limited by guarantee and is governed by the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 and the provisions set out in its memorandum and articles of association.
Structure, governance and management (continued)
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Mr R Barnes Chair (resigned 30/10/2023)
Mr J Moore Vice-Chair/Chair (Vice-Chair to 29/10/2023, Chair from 30/10/2023, resigned 23/11/2023)
Mrs H Clark Treasurer (Treasurer from 30/10/2023)
Ms C Gard Vice Chair from 15/04/2024
Ms C Mellon (resigned 23/08/2023)
Ms A McKenzie (appointed 28/07/2023, Secretary from 04/03/2024)
Mr R Baird (appointed 19/07/2023, resigned 07/12/2023)
Mr I Dickson Chair (appointed 15/04/2024)
Ms M Canavan (appointed 07/02/2024)
Senior Management Team
Lynda McArthur Senior Manager (appointed 01/03/2023)
Louise Jaundrill Assistant Manager
Registered Charity Name
Braid Health & Wellbeing Ltd
Charity Registration Number
SC012574
Company Registration Number
SC120813
Principal Office and Registered Office
Braid House
Labrador Avenue
Howden
Livingston
EH54 6BU
Independent Examiner
Fiona Haro CA
Thomson Cooper
22 Stafford Street
Edinburgh
EH3 7BD
Trustees
The trustees are appointed by the existing trustees at any time during the year. The existing trustees actively seek to recruit new trustees whose skills would complement and add to the Board. The memorandum and articles of association does not restrict the number of trustees that can be appointed.
No trustee shall be appointed to a salaried office of the charity.
The trustees are given an induction to the practical work of the charity. New trustees meet with the chairperson, other trustees and centre management and are given the previous years minutes of meetings, memorandum and articles of association, the latest financial statements, major reports and also the booklet Guidance for Charity Trustees' produced by OSCR. The booklet fully outlines the duties and responsibilities of charity trustees in Scotland.
The Board undertook training, together with senior staff, to maintain all compliance and statutory requirements. The trustees are responsible for the administration, management and control of the affairs and property of the charity.
Braid Health & Wellbeing Ltd has a Board consisting of six trustees who meet monthly and are responsible for the strategic direction and policy of the charity. The trustees are responsible for ensuring that the charity delivers the services specified and that key performance indicators are met.
The trustees, who are also the directors of Braid Health & Wellbeing Ltd for the purpose of company law, are responsible for preparing the Trustees' 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;
- 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 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.
The trustees are responsible for the maintenance and integrity of the charity and financial information included on the Charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
The trustees' report was approved by the Board of Trustees.
I report on the financial statements of the Charity for the year ended 31 March 2024, which are set out on pages 6 to 19.
The Charity’s trustees, who are also the directors of Braid Health & Wellbeing Ltd for the purposes of company law, 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 trustees 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.
Braid Health & Wellbeing Ltd is a private company limited by guarantee incorporated in Scotland. The registered office is Braid House, Labrador Avenue, Howden, Livingston, EH54 6BU.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.
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.
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.
Charitable expenditure includes direct and indirect costs of the charity. Indirect costs have been allocated between costs of activities in the furtherance of charitable objectives, and governance based on staff time and usage.
Governance costs include any costs in relation to audit and accountancy work, legal and professional advice, and consultancy costs associated with constitutional and statutory requirements.
Resources expended are included in the Statement of Financial Activities on an accruals basis, inclusive of any VAT which cannot be recovered.
Support costs have been allocated between activities undertaken directly and charitable activities based on the number of staff involved in each area
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
West Lothian Council Income
Day Care Fee Income
University of Edinburgh
Raising funds
Fundraising
Social work tutor costs
Day care centre services
Staff time
Usage
Premises
Usage
Communications and IT
Staff time
Heating and Lighting
Floor space
Water rates
Floor space
Equipment leasing
Usage
Payroll fees
Usage
Bad Debts
Actual
Independent Examination costs
Staff time
Usage
Premises
Usage
Communications and IT
Staff time
Heating and Lighting
Floor space
Cleaning
Cleaning
Water rates
Floor space
Equipment leasing
Usage
Payroll fees
Usage
Loss on disposal of fixed asset
Usage
The average monthly number of employees during the year was:
The key management personnel of the charity comprise the trustees and the Senior Management Team. The total amount of employee benefits received by key management personnel is £74,710 (2023 - £46,948).
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
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 £11,165 (2023 - £10,884).
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.
Corra Foundation Grant - for communication equipment and devices.
Age Scotland - Relaxation classes, Singer & Life Skills Project
Adapt & Thrive - Building & Post Pandemic Expenses
Barchester Health - Sensory Lights, Bubble Tube, Magicians Days
Kickstart Scheme - Kickstart salaries
RS McDonald - Community Health & Wellbeing Project
The Percy Bilton Charity - New Hoist
Turcan Connell/ Hugh Fraser - Community Health & Wellbeing Project
West Lothian Development Trust - Community Health & Wellbeing Project
Bank of Scotland - To fund external activity providers and activity clubs e.g. art therapists, reflexologist
St James Place Wealth Management - To fund occupational therapist
West Lothian Development Main Fund - Funding towards Community health & Wellbeing project costs:
Develop a range of support services for the elderly
Provide outreach support, digital or life skills courses
Develop support services for unpaid carers
Hire external activity providers
National Lottery - Community Navigator Post,Volunteer costs,Maintenance and running costs.
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 Dementia Centre Facilities Improvement Fund
This fund is for the development of the two sitting rooms downstairs and any other improvements required. At 31 March 2024 the closing balance on the fund was £17,581 (2023 - £17,581).
Designated Fixed Assets Fund
It was agreed by the trustees that the fixed assets of the charity be disclosed separately from general funds as a designated fund. The balance on this fund at 31 March 2024 was £5,357 (2023 - £8,974).
These are unrestricted funds which are material to the Charity's activities made up as follows:
Incoming resources
Resources expended
Incoming resources
Resources expended
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:
No travel or subsistence claims were made by any trustee of the charity during the financial year (2023 - £nil). During the financial year a payment of £84 (2023 - £72) was made to J Moore in respect of reimbursement for domain costs.