The Directors present their annual report and financial statements for the year ended 31 March 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's 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)".
The charitable company's objects are:
The advancement of citizenship, community development and social enterprises (where the social enterprise is asset locked and non-profit distributing and is part of the voluntary sector), urban and rural regeneration and the promotion of civic responsibility, volunteering, the voluntary sector and the effectiveness of charities.
Activities of the charity:
The above objects shall be for the benefit of the public within West Lothian, primarily but not exclusively, through the promotion, facilitation and support of: |
|
|
|
|
|
|
|
The principal activities of the charity during the financial year were: |
|
|
|
|
|
Significant activities in the year and their contribution to the principal activities above were:
We have further strengthened our relationships work with our key partners such as West Lothian Council, Health and Social Care Partnership (HSCP), Scottish Government, NHS Lothian, DWP, Skills Development Scotland, Chamber of Commerce, West Lothian College, Local Employability Partnership (LEP) and the wider Third Sector. Notably, we have influenced strategic groups on the role and value of the Third Sector in the following areas;
WL Council |
|
|
|
|
|
HSCP |
|
|
|
NHS Lothian |
|
DWP |
|
Wider Third Sector |
|
|
|
|
|
VSGWL and Third Sector representation
VSGWL has continued to take a leadership role and responded positively to opportunities by working at pace to represent the Third Sector. We have helped vulnerable individuals and communities across the local area have a voice in policy developments with our statutory partners. We have played a crucial role in providing support, often initiating actions at a community level by working closely with statutory partners such as West Lothian Council and the Integrated Joint Board (IJB) to support those in need.
We have utilised our premises to host sector and forums on a weekly basis. We have fantastic hybrid facilities which support in person and online meetings highly effectively. We have secured regular room hire rental from two Third Sector tenants who are based in our offices and supplemented our income from regular meeting rooms bookings.
We produced the second comprehensive report on Third Sector activity locally in conjunction with West Lothian Council. The report provided a snapshot of the Third Sector both nationally and locally, along with case studies showcasing the work of locally based organisations. Third Sector Annual report 2023-2024.
In February 2024, VSGWL celebrated our 21st anniversary- https://www.voluntarysectorgateway.org/vsgwl-celebrates-21-year-milestone/ . West Lothian Council led tributes and acknowledged our successes over the years West Lothian Council Motion which attracted positive media coverage.
Third Sector funding opportunities
VSGWL has continued to promote much needed funding news to the sector regularly. We also managed the Year 3 Communities Mental Health and Wellbeing Fund during the period.
|
|
The Scottish Government provided a further £15m of funding to support the impacts of social isolation and mental health and wellbeing support in adults at community level. West Lothian was allocated £469k in 23/24 to support small grass roots organisations. VSGWL launched the fund in late 2023. The fund received 68 applications seeking over £1.4m monies from the overall pot available. A total of 37 organisations were successfully and provided with grants to support their initiatives - https://www.voluntarysectorgateway.org/west-lothian-communities-mental-health-wellbeing-fund-year-3-successful-organisations. We also held peer to peer support events with organisations that received funding from previous years to help and share future funding approaches. VSGWL also sat on numerous third sector funding assessment panels run by West Lothian Council. |
|
|
|
Food Network support
VSGWL is continuing to provide independence governance and grant management to the Food Network in West Lothian. West Lothian Council has ringfenced £280k for food support in 2023/24 and VSGWL has established transparent and robust processes for managing and distributing monies to Network Members who are providing food to individuals in communities across the area.
The Food Network was established in partnership with West Lothian Council in 2020 as a response to the pandemic. The Network now comprises 19 members all operating community shops/pantries. The network is now addressing the fallout from the negative impact of the cost-of-living crisis within our deprived and isolated communities.
VSGWL is continuing to gather data from funded members about the number of people and families in receipt of food support, including a profile of economic status. From April 2023 to 31 March 2024, those Food Network members who received Council funding have provided food support to 73,196 people. The average age of those being supported is between 40-50 years with 62% of those supported being unemployed and/or on benefits, 35% of those accessing food support are single adults followed by a two-adult household (16%).
VSGWL has applied to OSCR for the creation of a new 2-tier legal structure. Once approved, the network will be able to apply for charitable funding from the summer 2024. VSGWL also secured a further £200k from the Shared Prosperity Fund via West Lothian Council for food support in 24/25. This is very welcome news for all members and the people across local communities who need to access food with dignity.
VSGWL has created and host a new Food Network page on our website. https://westlothianfoodnetwork.org/
Climate actions developments
A new West Lothian Climate Action Hub (WLCAN) was created in early 2024. VSGWL is an active member of the hub. https://sccan.scot/wlcan/about-us/ . We took take a leadership role in supporting climate action and VSGWL will also play an active role in West Lothian Councils Climate Emergency Forum and related action plans.
In February 2024, VSGWL installed solar panels on our roof to positively support action on reducing our carbon footprint and actively promote the environmental benefits to the wider sector and businesses.
Policy review
During the year, we carried out a comprehensive review of all our all internal and external policies. We also updated our staff terms and conditions with specific support to staff with caring responsibilities in advance of the introduction of the updated Carers Act in April 2024.
Accreditations
VSGWL was delighted to receive recognition for our work in securing Carer Positive recognition and in achieving Real Living Award accreditation during the year.
Carer Positive award - https://www.voluntarysectorgateway.org/vsgwl-earns-carer-positive-engaged-employer-accreditation/
Real Living Wage accreditation – https://www.voluntarysectorgateway.org/vsgwl-secures-real-living-wage-accreditation/
Good Governance developments
Our trustees carried out a formal review of the Boards effectiveness with support from SCVO - https://governance.checkup.scot/
West Lothian Council PDSPs
Following the May local elections in 2022, West Lothian Council established 7 Policy Development Scrutiny Panels (PDSPs). VSGWL has a seat at all of these. Following meetings with third sector reps, agreement has been secured to ensure wider sector representation and voice on each of the following PDSPs. The forums make important recommendations on policy to West Lothian Councils Executive team.
a) Corporate Policy and Resources
b) Education
c) Housing
d) Public & Community Safety
e) Social Work & Health
f) Environment & Sustainability
g) Economy, Community Empowerment and Wealth Building
Community Link project
Following discussions with colleagues in West Lothian HSCP, VSGWL developed a one-year test of change volunteer led initiative that provided services such as befriending and provide practical help and support to those in most need.
The Community Link Service received 26 referrals and supported 11 people across West Lothian to maintain full and independent lives at home - reducing social isolation, loneliness, and the demand on formal care services empowering individuals to improve their own health and well-being.
A team of 12 volunteers offered companionship, shared hobbies, assistance to attend hospital appointments, running errands and friendship through one-to-one volunteer visits totalling over 249 hours of support.
The initiative built on the already strong infrastructure embedded within VSGWL placing people at the centre of the design, delivery and support resulting in a professional and quality assured service which made a real difference to service users, unpaid carers, practitioners referring to the service and volunteers who gave their time and experience.
Enhanced Communications
This section highlights VSGWL's efforts to strengthen communication channels and online presence during the 2023-24 period. We focused on ensuring critical information reaches organisations and volunteers in West Lothian effectively and promptly.
Website Enhancements:
We conducted a comprehensive website review for accuracy and user-friendliness.
Optimised page structure for a seamless user journey.
Implemented an accessibility plugin to improve user experience for individuals with disabilities. This plugin offers features like screen reader compatibility, keyboard navigation, and customisable font sizes and colours.
Website Traffic:
Total Visitors: | 25K (users who initiated at least one session) |
New Visitors: | 24K (first-time users) |
Page Views: | 63K (total number of pages viewed, including repeated views) |
We’ve been proactive in sharing valuable information by publishing 323 news articles through the website's news section.
Mailing List:
We have increased our mailing list subscriber count to 471 subscribers. Each month we distributed a monthly E-Bulletin containing updates on: Funding news, Policy developments VSGWL updates, Volunteering opportunities, and Employment opportunities.
We’ve remained dedicated to supporting local Third Sector organisations by providing them with a platform to spotlight their services. Our monthly 'Org in the Spotlight' feature is sent out to our mailing list, as well as added to our website and social media, and has been well-received and continues to showcase the impactful work of these organisations within our community.
Social Media Presence:
We maintain an active presence on social media platforms, Facebook, X, and LinkedIn. Throughout 2023-24, we've observed steady growth in our follower base across these platforms.
Social Media Analytics:
Facebook:
Total Page Likes: | 707 |
Total Followers: | 822 |
X (Twitter):
Total Followers: | 939 |
LinkedIn:
Since starting on LinkedIn in 2022-23, we've kept growing. Now, in 2023-24, we've increased our followers to 265.
Total Followers: | 265 |
Conclusion:
VSGWL's commitment to improving communication channels and online presence has seen positive results. The website improvements enhanced user experience, while our content sharing strategy ensured timely dissemination of crucial information.
The monthly E-Bulletin and "Org in the Spotlight" feature effectively engaged subscribers and showcased the work of local organisations. Continued growth on social media platforms demonstrates our ability to reach a wider audience within West Lothian.
Outcomes work
We have delivered against a number of key outcomes, summarised below;
Build capacity - Improved sector governance by exploring and developing a range of internal skills, knowledge, and expertise to better support organisations
provided intensive one to one support to organisations on change of legal status, asset transfer and funding concerns.
Collaborating with others to help social enterprises grow and thrive in West Lothian.
Supported short life working groups for Community Connections, Adult Support Protection Lived Experience panels, CPP Net Zero and Craigsfarm Crisis Support Committee.
Developed support strategy for NHS Community Benefits Gateway that provided material support for organisations.
Voice - Ensured voice of Sector appropriately represented in key Council decision making forums and meetings.
VSGWL referenced in quarterly West Lothian Council official reports and minutes.
Contributed to quarterly Community Partnership (CPP) meetings and four CPP Development events
Contributed to quarterly IJB Board meetings and 6 Strategic Planning Group meetings.
Contributed to regular meetings with Adult Support & Protection Committee to update the sector with information from the committee for organisations involved in adult protection and possible training for third Sector Organisations.
Secured Third Sector representation on 7 Council Policy Development and Scrutiny Panels (PDSP) forums - https://www.voluntarysectorgateway.org/working-together/third-sector-strategy-group/
Connect -Significantly increased our communication reach on website and social media.
Contributed to Working Group with Sector Reps and Council officials on development of the Voluntary Orgs revenue budget, securing a two-year investment model for the sector.
Created a dedicated Third Sector Cost of Living Forum to support groups and those in need across the area third-sector-cost-of-living-forum/
Supported and strengthened the Third Sector Employability Forum - west-lothian-third-sector-employability-forum/ and ensuring strong voice on Local Employability Forum - https://www.westlothian.gov.uk/article/65549/Local-Employability-Partnership
Held Ukrainian volunteering support event
Provided secretarial support to range of themed sector forums and meetings - https://www.voluntarysectorgateway.org/working-together/
Hosted a range of networking events for third sector organisations and social enterprises, including
Suicide Prevention event
Naloxone awareness and training event
Charity Law awareness session
Stroke awareness session
First Aid Training
Community Benefits sessions
Carer Positive awareness session
Numerous 'meet the funder' and multiple funding awareness sessions
Bespoke Wellbeing and Resilience support event for leaders in third sector organisations and social enterprises.
Intelligence -Promoted Service Locator Tool https://www.voluntarysectorgateway.org/service-locator/ with key CPP partners including Police Scotland, Scottish Fire and Rescue Service, Skills Development Scotland and DWP.
Used Good Governance Code to measure VSGWL Board effectiveness and support continuous improvement.
The financial statements for the year to 31 March 2024 have been audited by Thomson Cooper.
Results for year
Total income has increased from £855,273 in 2023 to £1,167,607 in the year to 31 March 2024.
Core funding from the Scottish Government for 23/24 saw a welcome 4 % uplift on our core grant. There is ongoing dialogue with the Scottish Government to secure multi-year grant arrangements moving forward.
West Lothian Council core funding remained at the same level as the previous year for 22/23, however the Council has agreed to provide an additional £15k to VSGWL to deliver social enterprise support from 1 July 2023. Furthermore, the sub-group established with the participation of VSGWL to assist the Council develop its future funding strategy for the Third Sector has successfully secured a 2-year investment model for the Sector for 23/24 and 24/25.
Total expenditure has increased from £844,408 in 2023 to £1,120,645 in the year to 31 March 2024, which includes grant distributions made from the Scottish Government Wellbeing Fund in 2023-24 of £465,660, and from West Lothian Food Network of £278,431.
At 31 March 2024 staff costs represented 26% (2023: 25%) of total expenditure. Cash resources at 31 March 2024 were £186,285 a level which gives us encouragement to progress with our future plans.
Net assets
The net asset position at 31 March 2024 has increased by £46,784 from the prior year. This reflects an increase in unrestricted funds from £336,164 to £377,073 at the year end. The reserves continue to reflect the requirement of Charities SORP (FRS 102) to recognise our liabilities under the multi-employer defined benefit scheme in which the Charity participates by accruing the cost of agreed deficit reduction plan payments which amounted to £11,550. Each participating member is exposed to future funding risks arising from both members becoming unable to meet their obligations as well as to market levels. Note 18 provides further information on the significance of this.
Reserves and reserves policy
The present level of funding is adequate to support the continuation of activities for the foreseeable future and the directors consider the financial position of the charity to be satisfactory.
As the charity has no overdraft facilities it relies entirely on cash flow and its reserves to finance its day to day operations. In order to provide a stable platform for the delivery of outcomes expected by our stakeholders the directors’ policy is that at least three months’ operational expenditure is represented by unrestricted reserves, and this amounts to around £70,000, based on budgeted costs. Unrestricted reserves at 31 March 2024 were £377,073 but this includes £262,189 represented by fixed assets. Unrestricted reserves “free” of fixed assets and designations are therefore £114,884, which is well in excess of the policy.
As at 31 March 2024, restricted funds were £12,804 and unrestricted funds £377,073, of which £Nil were designated. In order to improve the financial security of the Charity the directors continue to explore opportunities for growing unrestricted funds.
Going concern
As highlighted earlier in this report, the charity has largely operated in a remote working environment since March 2020, but returned to the office in early 2022. We have continued to deliver high quality support to the sector during this period. There remains no significant impact to the charity’s funding or operations.
The directors have considered financial forecasts for the next twelve months which take into account expenditure expected to be incurred in order to continue the development and improvement plan for the Charity. Key to this is the assumption that core funding will remain at historic levels. The charity is actively exploring multi-year funding from our core funders along with additional income from other sources, moving forward. On this basis the directors are confident that the Charity has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements. Further information is set out in Note 19 of the financial statements.
Planned in the financial year to 31 March 2025 are:
Promote and secure additional funding and grants for Sector to cope with impact of Covid-19 and the cost-of-living crisis
Manage and distribute monies from the recurring Communities Mental Health and Wellbeing Fund, other Scottish Government or other local funds as requested by West Lothian Council
Explore income diversification streams for VSGWL including sub-let opportunities of new premises and development of investment strategy
Maintain, develop and strengthen external influence with key stakeholders and partners
Develop proposals through local Working Group on new investment model to better support wider sector
Support wider policy engagement with TSI network
Coordinate and support West Lothian’s Food Network and ensure that people facing food insecurities have access to food with dignity
Support and develop local volunteering within West Lothian by providing a gateway and brokerage service into volunteering for residents of West Lothian, spanning all Council priority areas.
Maintain the database for the West Lothian area showing local opportunities.
Continue to develop the membership of locally based charities, social enterprises, and volunteer-led community organisations through services.
Develop 5-year VSGWL strategic plan for 2025-30.
Secure next stage of Carer Positive accreditation.
Launch a refreshed Service Locator tool to highlight and support third sector support services.
Provide the main link between the Third Sector Strategy Group and the Third Sector Woking Group and the Economy, Community Empowerment and Wealth Building PDSP, including development of a further joint annual report.
Provide West Lothian Councils CPP and IJB with an understanding of national strategies and best practices from elsewhere in Scotland and how these affect West Lothian.
Support to Covid-19 recovery and renewal plans along with economic recovery is appropriately planned with key strategic partners.
Play key role in representing third sector on Local Employability Partnership (LEP)
Through this work VSGWL will ensure:
More people have increased opportunity and enthusiasm to volunteer, including recognition through the Saltire and Volunteer Friendly Awards.
Volunteer Involving Organisations are better able to recruit, manage and retain volunteers
More people have increased opportunity and enthusiasm to volunteer.
Third Sector Organisations are well governed and managed and able to deliver quality outcomes through the provision of relevant information on, tailored supports and a range of on-line resource tools.
Third Sector Organisations feel better connected and are able to influence and contribute towards public policy.
VSGWL Board has effective governance arrangements in place.
Improved access to local employability needs.
VSGWL is better placed to meet the future needs of third sector organisations and social enterprises, funders and stakeholders.
People in West Lothian have access to food with dignity.
The organisation is a charitable company limited by guarantee. The company was established under a Memorandum and Articles of Association which established the objects and powers of the charitable company and is governed under its Articles of Association.
Membership is open to Third Sector, Community, Public, and Private Sector Organisations and individuals operating within West Lothian who support the objects of the charity and agree to pay any subscription set by the directors. There are Full and Associate categories of membership, with only Third Sector and Community organisations active in West Lothian being able to become Full members and having voting rights. Associate members have the right to attend members' meetings.
The Directors who served during the year and up to the date of signature of the financial statements were:
Marisa Matos (Chair)
Ann E Pike
Evie Johnstone Appointed 2 May 2023
Traci Mackie
Amanda Hunter Appointed 7 February 2024
Afusat Adebayo Appointed 5 June 2024
Jeanette Dobson Resigned 8 March 2023
Daniel J Evans Resigned 2 May 2023, Appointed 11 September 2024
Jennifer Gilchrist Resigned 2 September 2024
Gillian Keast Appointed 26 January 2023, Resigned 2 September 2024
Glenn Thomson Appointed 7 February 2024, Resigned 1 July 2024
Secretary
Gillian Keast Resigned 2 September 2024
Chief Executive Officer
Alan McCloskey
Registered Office
20-22 King Street Bathgate EH48 1AX
Auditors
Thomson Cooper Accountants
3 Castle Court
Carnegie Campus
Dunfermline
KY11 8PB
Bankers
Bank of Scotland
50 Hopetoun Street
Bathgate
EH48 4EU
Unity Trust Bank pic
9 Brindley Place
Birmingham
B1 2HB
CAF Bank Ltd
25 Kings Hill Avenue
Kings Hill West Mailing Kent
ME19 4JQ
Employment advisers
Employers in Voluntary Housing (EVH)
51h Floor
137 Sauchiehall Street
Glasgow
G23EW
Organisational Structure
VSGWL has a board of directors who meet every two months and are responsible for the strategic direction and policy of the charity.
The directors are responsible for ensuring that the charity delivers the services specified and that key performance indicators are met.
Sub-Committees
The following sub-committees are in place:
• Finance
• HR
• Quality Governance and Compliance
The organisation is managed on a day to day basis by the Chief Executive Officer under which the staff team deliver the agreed Work Plan.
Organisation of our Work
The charity is organised so that the directors meet regularly to manage its affairs. Any risks to which the charity may be exposed have been reviewed and systems have been established to mitigate those risks.
The Board remains responsible for overall governance. This includes ensuring senior management establish and maintain adequate systems of risk management and that the level of capital held is consistent with the risk profile of the organisation.
The Board has a clear strategy of what to delegate to management and how to monitor and evaluate the implementation of policies, strategies and business plans.
The Board has delegated the management of the organisation to the Chief Executive Officer (CEO). This delegation of authority includes responsibility for:
Developing business plans, budgets and company strategies for consideration by the Board and, to the extent approved by the Board, implementing these plans, budgets and strategies;
Identifying and managing operational risks on a daily basis and, where those risks could have a material impact on the company's business, formulating strategies for managing these risks for consideration by the Board;
Managing the company's current financial and other reporting mechanisms as well as its control and monitoring systems to ensure that these mechanisms and systems capture all relevant material information on a timely basis and are functioning effectively;
Ensuring that the Board and its sub-committees are provided with sufficient information on a timely basis in regard to the company's business to enable the board and those committees to fulfil their governance responsibilities;
Implementing the policies, processes and codes of conduct approved by the Board.
Board Management Induction and Development
A clear open and transparent policy and procedure has been developed for the recruitment of new directors.
All directors are given an induction which seeks to ensure their familiarity and understanding of the objectives of the Company, an understanding of its Governing Documents and familiarisation with the work plan for the current year.
Copies of past minutes, Annual Report and Financial Statements are made available as is a copy of the OSCR guidance for Charity Trustees.
Periodically the Board will meet with Senior Staff in attendance, to discuss strategic planning and organisational development needs.
Directors are encouraged to attend training events and conferences which will enhance their abilities and skills in undertaking their role as directors with the company and Trustees of the charity.
The Board is committed to individual and collective performance review.
Key management personnel remuneration
The directors consider the board and the chief executive officer as comprising the key management personnel of the charity in charge of directing and controlling the charity and running and operating the charity on a day-to-day basis. All trustees give of their time freely and no trustee remuneration was paid in the year. The pay of the charity's chief executive officer is reviewed annually and in line with available funding.
Risk Management
Systems and procedures have been established to mitigate the risks the charity faces. The Quality, Governance and Compliance Committee provides reports to the Board on its activities and the effectiveness of risk management, internal controls, compliance and governance matters. The Committee escalate any matters of significant concern and exception reports to the Board for their consideration and action. The Board carried out a review of our Governance arrangements in line with Code of Conduct guidance.
The risk management strategy includes:
regular review of the principal risks and uncertainties that the charity faces;
establishment of policies, systems and procedures to mitigate those risks identified in the annual review;
implementing procedures to minimise or manage any potential impact on the charity from those risks;
Directors are committed to individual and collective performance review at Board level and have identified a need to prioritise this.
Financial sustainability is considered to be the main risk for the charity. A key element in the management of financial risk is a regular review of available liquid funds to settle debts as they fall due, regular discussions with funders, and active management of trade debtors and creditors balances to ensure sufficient working capital is available.
Reference and administrative details
Information about the charity is set out on page 10.
The directors, who also act as trustees for the charitable activities of Voluntary Sector Gateway West Lothian, 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 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 Directors are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- 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 Directors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the 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 Directors 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.
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 Directors' report was approved by the Board of Directors.
Opinion
We have audited the financial statements of Voluntary Sector Gateway West Lothian (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 Directors' 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 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 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 Directors' 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 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 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 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 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.
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.
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, tested a sample of journals to confirm they were appropriate and inspected minutes from meetings held by management and directors for any reference to breaches of laws and regulations. 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 directors.
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.
Other matters
The financial statements of the company for the year ended 31 March 2023 were audited by another auditor who expressed an unmodified opinion on those financial statements on 8 November 2023.
Use of our report
This report is made solely 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 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.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Voluntary Sector Gateway West Lothian is a private company limited by guarantee incorporated in Scotland. The registered office is 20-22 King Street, Bathgate, West Lothian, EH48 1AX.
Unrestricted funds are available for use at the discretion of the Directors in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
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.
The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.
The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as incurred.
The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in income/(expenditure) for the year.
Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other recognised gains and losses in the period in which they occur and are not reclassified to income/(expenditure) in subsequent periods.
The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.
Unrestricted Funds
Restricted Funds
Unrestricted Funds
Restricted Funds
Performance related grants
Total
Other staff costs
Pension scheme - re-measurement and discounting adjustments
Supplies and services - Social Enterprise support
Total
Total
Support and governance costs are allocated on a direct basis.
The average monthly number of employees during the year was:
The remuneration of key management personnel was as follows:
The key management personnel of the charitable company, aside from the directors who are not remunerated, comprised the Chief Executive. the above represents the total employee benefits of the key management personnel of the charitable company during the year, including employer pension contributions and employer National Insurance contributions.
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 charity participates in the Scottish Voluntary Sector Pension Scheme which is a multi-employer defined benefit scheme. The scheme is funded and was contracted-out of the State scheme until 31 March 2010, when the scheme was closed to future accrual. From 1 April 2010 contributions in respect of future service ceased.
The Pension Trustee commissions an actuarial valuation of the Scheme every three years. Asset values are calculated by reference to market levels. Accrued pension benefits are valued by expected future benefit payments using a discounted rate calculated by reference to future investment returns.
A full actuarial valuation for the scheme was carried out with an effective date of 30 September 2020. This actuarial valuation was certified on 21 December 2021 and showed assets of £153.3m, liabilities of £160.0m and a deficit of £6.7m.
It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme, and it therefore accounts for the scheme as a defined contribution scheme.
As a result of pensions scheme legislation there is a potential debt on the employer that could be levied by the Trustee of the Scheme. The debt is due in the event of the employer ceasing to participate in the Scheme or the Scheme winding up.
The debt for the Scheme as a whole is calculated by comparing the liabilities for the Scheme (calculated on a buyout basis i.e. the cost of securing benefits by purchasing annuity policies from an insurer, plus an allowance for expenses) with the assets of the Scheme. If the liabilities exceed assets there is a buy-out debt.
The leaving employer's share of the buy-out debt is the proportion of the Scheme's liability attributable to employment with the leaving employer compared to the total amount of the Scheme's liabilities (relating to employment with all the currently participating employers). The leaving employer's debt therefore includes a share of any 'orphan' liabilities in respect of previously participating employers. The amount of the debt therefore depends on many factors including total Scheme liabilities, Scheme investment performance, the liabilities in respect of current and former employees of the employer, financial conditions at the time of the cessation event and the insurance buy-out market. The amounts of debt can therefore be volatile over time.
The Scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.
The Scheme was classified as a 'last-man standing arrangement', and therefore the company us potentially liable for other participating employers' obligations if those employers are unable to meet their share of the Scheme deficit following withdrawal from the Scheme. Participating employers are legally required to meet their share of the Scheme deficit on an annuity purchase basis on withdrawal from the Scheme.
Due to the actuary calculating a significant potential employer debt, a recovery plan came into effect whereby the charity is contracted to make payments to eliminate the past service deficit. These payments will have to be made on an on-going funding basis by 31 May 2024.
Deficit Contributions
From 1 April 2022 to 31 May 2024 a total of £1,473,969 per annum (payable monthly and increasing by 3% each year on 1 April) is payable by the participating employers (Voluntary Sector Gateway West Lothian's share is £10,144 PA).
Some employers have agreed concessions (both past and present) with the Trustees and have contributions up to 28 February 2034.
The recovery plan contributions are allocated to each participating employer in lune with their estimated share of the Scheme liabilities.
Where the Scheme is in deficit and where the company has agreed to a deficit funding arrangement, the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost in the Statement of Financial Activities.
The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full corporate bond yield curve to discount the same recovery plan contributions.
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.
Scottish Government – Wellbeing Fund
The grant is for the fund to be made available to support community-based initiatives that promotes and develop good mental health and wellbeing and mitigate and protect against the impact of distress and mental ill health within the adult population.
Food Network funds
Aims to address inequalities and support beneficiaries from low incomes, rural areas and disadvantaged groups who are at risk of poorer health outcomes because of food poverty in West Lothian.
WLC Capital Grant - Solar Panels
This fund supports the climate change drive of the council towards achieving NetZero in the coming years. It aimed at reducing greenhouse gas emissions and lessen the impact of climate change by bringing opportunities, such as cost savings from reduced energy bills and making better use of our resources, supporting healthier, more sustainable lifestyles and making our communities more resilient. There are many small changes we can all make to reduce our impact on the environment that, together, will help secure a better future for everyone in West Lothian.
Volunteer Awards Ceremony
Funding received in respect of the volunteer award ceremony which has not been expended in the year to 31 March 2023.
National Lottery Community Fund
This grant is to fund £52,005 for direct grant distribution, £4,500 for Consortia Development and £1,500 for coordination of support for social enterprise across West Lothian.
WLC Locator Tool Funding
This funding is to be used to improve the functionality of the Locator Tool so that more organisations are registered on the system and also to support community engagement to take the learning from the pandemic and use the information to ensure that the community hubs play an active role in supporting recovery from the pandemic.
Unpaid Carers Fund
This funding is to be used by VSGWL to help organisations coming out of lockdown and is aimed at small charities, third sector and voluntary organisations to bid in to proactively find ways to encourage carers to engage in activities to support their health and wellbeing.
Rural Community Local Led Development Fund
Grants must be spent on capital items that support local communities, or the groups themselves, in tackling the cost of living crisis and/or social isolation. The balance on the fund was applied for fittings and equipment acquisition by Voluntary Sector Gateway West Lothian and was transferred to unrestricted funds on purchase of the related fixed asset.
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.
There were no disclosable related party transactions during the year (2023 - none).
The charity had no material debt during the year.