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 charitable company's governing document, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
Policies and objectives
The main objectives/activities continue to be to promote any charitable purposes for the benefit of children and young people in need within the City of Dundee and its environs without distinction of political, religious and other opinions, to advance the general education and health and relieve stress amongst children and young people from disadvantaged families in necessitous circumstances.
Activities undertaken to achieve objectives
To achieve the objectives of supporting young people aged between 5 and 25 the charity operates a one to one befriending service and three new befriending groups.
Main achievements of the charity
BeFriends has it’s usual year of highs and lows. From a weak financial position in the previous year the charity has stabilised it’s monetary base, though a reduction in funders awards generally and a tightening of criteria for awards has kept the charity from making some service improvements.
The charity has bedded into the church premises in Stobswell, although a horizon-cloud is that the building is currently up for sale. It is hoped that the current tenants, another church, can secure the funding to purchase it and give us some security to improve the facilities.
The main issue for BeFriends, and all charities, is the perennial funding problems. We have been extremely fortunate that applications to Gannochy Trust, Robertson’s Trust , Northwood Trust and several small local administered trusts have been successful. Dundee Council continue to support us with an annual award. Several applications are currently pending, mainly with reference to salary provision. Core costs and young people’s activities are relatively easier to acquire, however Scottish funders have greater demand than elsewhere in the UK and our situation is almost certain to alter.
A secondary, but no less important concern for the charity, is the reticence to take up volunteering post government restrictions. This is an issue across the third sector but BeFriends requires volunteers to match the number of individuals on its waiting lists. We currently have around 30 volunteers including 5 board members, two of whom are also befrienders. BeFriends board had a change with Bex Warne leaving and Bob Low joining us. We continue to take part in volunteer fairs, fresher’s weeks at both universities, Dundee College to promote our volunteering, as well as using social media.
Operationally, BeFriends has introduced new groups for particular demographics and these have been successful. They add to our local community involvement in Maryfield. This activity has attracted a couple of small, but welcome, local awards. Our group for 18-25 year olds continues to thrive, and continues to be an important part of BeFriends provision.
The charity has had a rollercoaster few years with staff turnover, funding crises and accommodation issues, but the skillset of our charity individuals have been a constant in our survival and development and the board have every confidence that BeFriends can progress and survive.
Going concern
At the time of approving the financial statement, the trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. However, this is dependent on obtaining further funding in the year to 31 March 2026 to ensure there is enough resources to pay all liabilities. In the event that no funding is obtained, the Board would enter into a period of consultation and finally redundancy. If the charity enters into a period of redundancy, the charity could be continued with members of the Board covering essential roles and the charity would be pulled back to the core activity of volunteer befriending.
Reserves
At the year end the charity holds £52,529 (2023 - £75,856) in reserves, of which £44,083 (2023 - £48,009) is unrestricted and of this free reserves not invested in fixed assets amount to £42,778 (2023 - £45,748). No material amounts have been designated.
Reserves policy
It is the policy of the charitable company that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to approximately 5 month’s expenditure. The trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charitable company’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
Principal funding
The principal source of funding is trust donations and local authority.
Financial risk management
The trustees has assessed the major risks to which the charitable company is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Constitution
Befriends Limited is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association which was amended on 18 September 2019.
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:
Recruitment and appointment of trustees
The management of the company is the responsibility of the trustees who are elected and co opted under the terms of the Articles of Association. The trustees are considered as key management of the organisation. Recruitment of the trustees is an ongoing process and is usually undertaken by current board members. Often individuals or organisations are targeted when a gap in expertise is identified.
All trustees are carefully screened and must provide us with 2 referees and must also complete an enhanced disclosure check. Initially, all new trustees take part in an induction meeting and are also invited to take part in our preparation course. Trustees will also participate in other relevant or necessary training that may be required in their duties.
Board members are limited to a period of three years. The company may at any AGM by ordinary resolution re-appoint any director who reaches the end of their 3 year term.
The trustees' report was approved by the Board of Trustees.
I report on the financial statements of the charitable company for the year ended 31 March 2024, which are set out on pages 5 to 18.
The charitable company’s trustees, who are also the directors of Befriends Limited 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 which gives me reasonable cause to believe that in any material respect the requirements:
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;
have not been met, or
to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
The statement of financial activities includes all gains and losses recognised in the year.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 8 to 18 form part of these financial statements.
The notes on pages 8 to 18 form part of these financial statements.
Befriends Limited is a private company limited by guarantee incorporated in Scotland. The registered office is Stobswell Parish Church, 170 Albert Street, Dundee, DD4 6QW.
The financial statements have been prepared in accordance with the charitable company's governing document, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charitable company is a Public Benefit Entity as defined by FRS 102.
The charitable company has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. However, this is dependent on obtaining further funding in the year to 31 March 2026. This is required to ensure there is enough resources to pay all liabilities. In the event that no funding is obtained, the Board would enter into a period of consultation and finally redundancy. If the charity enters into a period of redundancy, the charity could be continued with members of the Board covering essential roles and the charity would be pulled back to the core activity of volunteer befriending.
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 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 charitable company 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.
Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
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 allocated on the portion of the asset’s use.
Support costs are those costs incurred directly in support of expenditure on the objects of the company. Governance costs are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the company's objectives, as well as any associated support costs.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
At each reporting end date, the charitable company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charitable company 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 charitable company's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charitable company’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
In the application of the charitable company’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Tangible fixed assets are depreciated over a period to reflect their estimated useful lives. The applicability of the assumed lives is reviewed annually, taking into account factors such as physical condition, maintenance and obsolescence.
Fixed assets are also assessed as to whether there are indictors of impairment. This assessment involves consideration of the economic viability of the purpose for which the asset is used.
There are some costs incurred which are not directly related to the charitable project but are deemed general support costs for the running of the organisation. The Charity have deemed that a percentage of the Project Worker's salary should be considered a support cost. This application is consistent with prior years.
Staff wages and other overhead costs are allocated towards projects based on funding.
Grants
Rent, rates and insurance
Cleaning
Heat and light
Repairs and maintenance
Staff expenses
Staff training
Computer costs
Sundries
Outings and activities
Fees
Telephone
Print, postage and stationery
Professional & Legal fees
None of the trustees (or any persons connected with them) received any remuneration during the year.
During the year, trustees were reimbursed £309 of expenses for training and volunteer expenses (2023 - 1 trustee a total of £244 for travel).
The average monthly number of employees during the year was:
The charitable company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charitable company in an independently administered fund.
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.
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.
Purposes of Restricted Funds:
Gannochy Trust - This was awarded to contribute towards the One-to-One Befriending project.
DCC Common Good Fund - This was awarded to contribute towards Group costs and Sessional Worker salaries.
National Lottery Community Fund - This was awarded to contribute towards the salary costs of a Project Worker.
DVA - This was awarded to contribute towards the salary costs of a Sessional Worker within the 18-25 BeFriending service.
Foundation Scotland - The Champ Trust - This was awarded to contribute towards the cost of rent.
Alexander Moncur Trust - This was awarded to contribute towards the costs of cooking equipment.
Foundation Scotland - This was awarded to contribute towards the cost of running a weekly activities group.
Alexander Moncur Trust - This was awarded to contribute towards the costs of running the Thursday Group.
DCC Partnership- This was awarded to contribute towards the Cosy Cafe.
DCC- Community Regeneration Fund- This was awarded to contribute towards the Youth club.
Hillcrest Foundation- This was awarded to contribute towards the salary of group workers.
Robertson Trust- This was awarded to contribute towards the Volunteer Co-ordinator and Volunteer Training Costs.
Tesco Community Grant - This was awarded to contribute towards the One-to-one Befriending project.
Dundee Volunteer & voluntary action - This was awarded to contribute towards the Communities Mental Health and Wellbeing Fund.
There were no disclosable related party transactions during the year (2023 - none).