The trustees present their annual report and financial statements for the year ended 31 March 2024.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charitable company's Memorandum and Articles of Association, the Companies Act 2006, “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), Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended).”
Note: Glossary of Terms used in following Report
ABC – Argyll and Bute Council
ABCR – Argyll and Bute Care and Repair
CRO – Care and Repair Officer
CRS – Care and Repair Scotland
FY – Financial Year
H&S - Health & Safety
HIS – Home Improvement Service Contract
HSS – Housing Support Service Contract
HSCP – Health and Social Care Partnership
HSO – Housing Support Officer
IJB – Integrated Joint Board
NHS – National Health Service
OT – Occupational Therapy or Therapist
SG – Scottish Government
The charity's objects are to promote and maintain a Care and Repair service in Argyll and Bute. We are independently operated and part of the national network of locally managed and funded Care and Repair organisations that assist the over 60's and people living with disability(s) or a long-term debilitating condition to carry out adaptions, repairs and improvements to their homes. This enables the client group to remain secure in their own homes and communities for as long as they wish, or is reasonably practicable, in comfort and safety. This service continues to be funded principally by grant aid from Argyll and Bute Council, NHS and the Integrated Care Fund provided through the Argyll And Bute Health and Social Care Partnership. The charity also raises revenue from some specific chargeable works provided to our Local Authority and NHS partners and our client group and we receive occasional small donations from service users, other charitable bodies and residents of Argyll and Bute.
The Board and Manager wish to thank the Council, NHS, IJB, HSCP and our many clients for their continued support and interest in the work carried out by the Argyll and Bute Care and Repair Service.
Summary
As a 3rd sector body supporting primarily national health service and local authority social care partners we continue to maintain high levels of vigilance and strict home visit protocols to manage the risk of possible contamination and infection during our many visits throughout the region. This is to ensure we continue to protect both our workers and our vulnerable client groups. Where advised to do so we also ensure we are compliant with any new disease and infection control advice provided by Scottish Government, NHS and local HSCP services. We have had minimal staff absence due to illness throughout the FY which allowed us to maintain high productivity and priority response rates for our referral partners and clients. Our efforts continue to help reduce the stress on HSCP services by responding rapidly within priority guidelines to facilitate hospital discharges and providing services to maintain people in their own homes for as long as is reasonably practical.
Cross service meetings and ABCR Board meetings still continue to utilise video conference technology, but hybrid meetings have become more common as some people believe they benefit more from face to face interaction. We will continue to utilise MS Teams and Zoom for our own Board meetings as it allows flexibility around individual time and travel across the region, whilst allowing essential involvement, interaction and dissemination of information for our Board members.
Housing Improvement Service
CRO summary figures
CRO FY2022 data compared to FY2021 and 2018 (pre-Covid)
| FY2023 | FY2022 | FY2021 | FY2018 |
New Referrals | 116 | 130 | 144 | 233 |
Closed Cases | 110 | 123 | 154 | 239 |
Council Grant Total | £431,014 | £302,124 | £496,696 | £649,036 |
Client Contributions for grant assisted cases | £117,186 | £68,572 | £110,405 | £142,383 |
Non-Grant Funded Cases | 54 | 57 | 61 | 107 |
• Major Adaptation new referral numbers did not pick up and fell further yet again during FY2023 to the lowest recorded.
• Closed case numbers also fell but grant and client contribution values increased from the previous FY. However, local authority total grant assisted project values are still about 30% less than pre Covid.
• We have discussed the low new referral issue and it does look like backlogs are primarily to blame for this. It would be a worry on a number of levels if it were to continue, but FY2024 is showing signs of decent increases which we hope will continue as the OT backlog is cleared in the localities.
• We will continue to monitor and discuss the situation with Housing Operation Leads, Housing OT and locality OT’s.
• Just over 60% of all closed cases were for showering adaptations, 14% for stairlifts and 10% each for ramps and access improvements with the balance made up of track and hoists, closomats, external handrails.
• Around 75% to 80% of all current new referrals tend to be for wet floor and other showering adaptations, with Ramps, stairlifts and access improvements making up the majority of the rest.
Personnel Changes & New Staff Members:
We did not replace the Helensburgh part-time CRO as numbers did not justify that but we did replace the Oban and Lorne CRO following the resignation of the previous incumbent.
The temporary HSO for OLI & MA resigned in Dec 2023 following an HR issue. He was replaced on a temporary 3 day per week part-time basis and funding was reduced appropriately. We also recruited a temporary full time HSO for Dunoon and Cowal area in Feb 2024 due to our permanent HSO remaining on long term sickness absence.
Other staff & Board changes
Colette Benham, ACHA Director of HR & Corporate Services, was re-elected Chair. David Millward MBE was re-elected Deputy Chair and Helen Kessell elected as interim Treasurer following the resignation from the Board of the previous incumbent.
I.T Support, Telephony/Mobiles and other technology items
Our annual agreement with Matrix computers was renewed to provide IT Support at the same cost as previous 4 years.
Mobile phones
Contracts continued for the remaining contract term with Telecom networks who also provide our virtual office phone system.
Lone Worker Trackers
Personal tracker systems are now worn by our HSO’s as part of our Lone Worker policy arrangements. The GPS pendants and provided by Peoplesafe and allow for accurate location tracking and incident reporting. They also detect any falls, much like a telecare pendant, should an HSO be in an accident or collapse due to any medical emergency.
Van Fleet
We currently have 7 work vans. HSO’s continue to carry out daily vehicle checks and complete weekly van checklist which is submitted to the Oban office.
We were experiencing issues with one of our older vehicles used in HAL region and this is currently being changed out for a new vehicle following Board approval. All other vehicles are reported as running Ok as of writing. MOT’s, maintenance and servicing are carried out as per manufacturer’s guidelines and taxed as and when required.
AA emergency recovery is also maintained for the fleet.
Health And Safety
We have had no reportable injuries during FY 2023.
We have had no work related absences and very little instances of Covid or other illness within our staff over the financial year. Unfortunately, as mentioned previously the manager and one of our longer serving HSO’s have had some extended serious health concerns to deal with. The manager has now returned full time to work but unfortunately the HSO continues on long term sick leave. The managers responsibilities were split between senior staff per our emergency action plan and the addition of the temporary HSO resource has allowed us to maintain the housing support service in the affected locality.
Our H&S policy and all work-based risk assessments, site guidelines, COSHH assessments, etc, were reviewed and updated. These are forwarded to all staff for review, acknowledgement, comment and use.
I renewed our annual H&S consultancy agreement with Clarity Solutions.
Insurances
Our combined liability, entity, cyber and fleet insurances were due for annual renewal in June 2023. This was done through our brokers, Marsh, and although completed at competitive rates there was an 25% uplift compared to the previous year. All companies were experiencing similar, if not more, renewal increases. All new documents are displayed as appropriate in our office and sent to staff and funders as required or requested.
Budget/Finance
Our revenue for FY2023 was impacted by continuing reductions in our chargeable items, i.e., OT joinery works, private handyperson jobs and drawing production for major adaptations. OT referrals did not bounce back to pre-Covid levels and Telecare is the only service where there is increased activity, but non chargeable.
Our operating costs including Fleet maintenance, fuel, salaries and associated payroll and pension costs continue to increase, so the small increase in our HIS grant was very much welcomed.
I continue to ensure with the office administrator that our agreed charitable requirements to maintain 3 months operational costs are maintained in order to meet any potential sudden and unexpected service and funding reductions and to meet our pension deficit responsibilities. We have now introduced the Xero online finance / accountancy software tool to allow us to better manage and review our budget. It also allows access for our accountants and auditors to maintain a watching brief on our finances and produce real-time management accounts and reports.
The costs associated with our part-time HSO in HAL continues to be supported by the ICF locality funding and the temporary HSO in OLI is also funded by additional grant provided via the HSCP to meet additional telecare analogue to digital project support and more general referrals.
P1 referrals are consistently at 20% or above and put pressure on our time and resources, so the additional HSO support is required to maintain an effective service that can respond within the priority guidelines.
The charity is funded to match the annual expenditure budget, with any underspend being deducted from the following year's funding. However, any income generated is kept by the charity and put into reserves.
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to three month’s expenditure. The directors consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’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.
The charity ended the year with funds of £467k of which £457k is unrestricted (£478k of this is net current assets excluding pension liability and fixed assets) and £11k in restricted funds which are fixed assets held.
The company participates in a multi-employer pension scheme which provides benefits to over 150 non- associated employers. The scheme is hybrid of defined contribution and defined benefit, in the UK. The scheme is accounted for as a defined contribution scheme, as current members are all within this scheme.
The charity is constituted as "incorporated by guarantee and not having share capital", governed by its Memorandum and Articles of Association. It is recognised as a charity for the purposes of S505 ICTA 1988 and is entitled under chapter 2 paragraph 13 of The Charities and Trustees Investment (Scotland) Act 2005 to describe itself as a Scottish Charity.
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:
Directors are appointed from our members or by direct targeting of individuals who have a specific interest or skill relating to Care & Repair or by general advertisement locally. Induction of new Directors is carried out by the Manager/Company Secretary.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
To achieve its objectives the charity operates a central office based in Oban, where the Manager, Administrator and part-time Administrator are based.
The charity also employs three Care and Repair Officers and a Technical Officer, who are home based covering all of Argyll and Bute and manage the Major Adaptations grant process for clients.
The Charity also employs six home based Housing Support Officers and currently also employs one full-time, temporary, Housing Support Assistant who provide technical support for OT, Telecare and Social Work colleagues through delivery and fitting of adaptations and equipment, installation and maintenance of telecare devices providing home safety and security checks and fitting and maintenance of related items. They also carry out chargeable small repairs for private clients.
The Manager, Steven Clarkson, is responsible for the day to day operations of the Company, ensuring ‘Service Level Agreement’ terms and conditions are met and to attend regular performance meetings with our funder’s contract review and procurement services contacts. He is also responsible for developing and/or introducing new revenue based services and finding other sources of funding. He reports on progress at Care and Repair Board Meetings held every 2 months.
Services to employees including advice and training, health and safety, risk management and employment policies are provided by our retained H&S consultants ‘Clarity Safety Solutions Ltd’ and by the Care and Repair Manager and Board Director with HR expertise.
The Board previously conducted its own review of major risks to which the charity is exposed and systems have been established to mitigate those risks. Internal risks are minimised by the implementation of procedures for authorisation of all transactions and projects.
These are periodically reviewed to ensure that they still meet the needs of the charity, including fraud.
The trustees report was approved by the Board of Trustees.
The trustees, who are also the directors of Argyll and Bute Care and Repair for the purpose of company law, are responsible for preparing the Trustees Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the trustees to prepare accounts 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 accounts, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP 2015 (FRS 102);
- 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 accounts;
- prepare the accounts 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 accounts comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). 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.
Opinion
We have audited the financial statements of Argyll and Bute Care and Repair (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 the notes to the financial statements, including a summary of 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 trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the trustees report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and
the directors' report included within the trustees report has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:
adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit; or
the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees report and from the requirement to prepare a strategic report.
As explained more fully in the statement of trustees responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
We have been appointed as auditor under section 44 (1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 ad under the Companies Act 2006 and report in accordance with regulations made under those Acts.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Enquiry of management, those charged with governance and the entity's solicitors around actual and potential litigation and claims;
Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations;
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;
Reviewing minutes of meetings of those charged with governance; and
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charity’s trustees, as a body, in accordance with regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members and trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company, the charitable company’s members as a body,and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
William Duncan + Co (Audit) Ltd 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.
Argyll and Bute Care and Repair is a private company limited by guarantee incorporated in Scotland. The registered office is 5 Stafford Street, Oban, Argyll, PA34 5NJ.
The financial statements have been prepared in accordance with the charity's [governing document], the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charity. 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 charity 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.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Cash donations are recognised on receipt.
Revenue grants are recognised in the Income and Expenditure account in the year to which they relate. Capital grants are also recognised in the income and expenditure account in the year to which they relate; both are credited to reserves as appropriate to the nature and conditions attaching to the grant.
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.
Resources expended are included in the Statement of Financial Activities on an accruals basis. All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis.
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 charity 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 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.
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 charity’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.
Termination benefits are recognised immediately as an expense when the association is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
The regular cost of providing retirement pensions and related benefits is charged to the statement of financial activities over the employees' service lives on the basis of a constant percentage of earnings.
In addition there is an agreed past service deficit contribution made which is recognised in the balance sheet as 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 at note 15. The unwinding of the discount rate is recognised as a finance cost.
In the application of the charity’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.
Grants
Income from charitable activities
Care & Repair
Housing Support
Care & Repair
Housing Support
Chargeable Services/Repairs
Travel and subsistence
Motor expenses
Materials and tools
Motor vehicle leasing
None of the trustees (or any persons connected with them) received any remuneration during the year, but four were reimbursed a total of £317 travelling expenses (2023: four reimbursed £415).
The average monthly number of employees during the year was:
The total pension contributions paid for the year of £28,283 (2023 - £42,862) includes an amount of £Nil (2023 - £17,728), which is a contribution (net of interest) in relation to past service funding deficit of the Scottish Housing Association Pension Scheme, as calculated by the scheme actuaries. In addition, per note 13, a credit of £52,211 (2023 - credit charge of £45,728) arises due to a change in interest discount rate used. The Company was committed to paying a sum annually towards this deficit reduction which are required until the 30th September 2022. The interest charge of £1,802 (2023 - £440) is shown as a finance cost.
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The charity participates in a multi-employer 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 scheme is a hybrid of defined contribution for current employees and historic defined benefit contributions.
The charge to profit or loss in respect of defined contribution schemes was £13,112 (2023 - £12,932).
Amounts recognised in the profit and loss account:
The amounts included in the balance sheet arising from the charity's obligations in respect of defined benefit plans are as follows:
Movements in the present value of defined benefit obligations:
The defined benefit obligations arise from agreed past deficit contributions.
Other movement relates to the financial impact of change in rate of discount factors from assumptions made by SHAPs scheme administrators.
Argyll & Bute Care & Repair participates in the Scottish Housing Associations’ Pension Scheme (the
Scheme), a multi-employer scheme which provides benefits to some 150 non associated employers. The Scheme is a defined benefit scheme in the UK.
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 last triennial valuation of the scheme for funding purposes was carried out as at 30 September 2018. This valuation revealed a deficit of £121m. A Recovery Plan has been put in place to eliminate the deficit which will run to either 30 September 2022 or 31 March 2023 (depending on funding levels) for the majority of employers, although certain employers have different arrangements.
The Scheme is classified as a 'last-man standing arrangement'. Therefore the company is 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.
For financial years ending on or before 28 February 2019, it was not possible for the company to obtain sufficient information to enable it to account for the Scheme as a defined benefit scheme, therefore the company has accounted for the Scheme as a defined contribution scheme.
For financial years ending on or after 31 March 2019, it is possible to obtain sufficient information to enable the company to account for the Scheme as a defined benefit scheme.
For accounting purposes, a valuation of the scheme is carried out with an effective date of 30 September each year. The liability figures from this valuation are rolled forward for accounting year-ends from the following 31 March to 28 February inclusive.
The latest accounting valuation was carried out with an effective date of 30 September 2023. The liability figures from this valuation were rolled forward for accounting year-ends from the following 31 March 2024 to 28 February 2025 inclusive.
The liabilities are compared, at the relevant accounting date, with the company’s fair share of the Scheme’s total assets to calculate the company’s net deficit or surplus.
Argyll & Bute Care & Repair has been notified by The Pensions Trust of the estimate employer debt on withdrawal from the Scottish Housing Association's Pension Scheme based on the financial position of the Scheme as at 30 September 2021. As of this date the estimated employer debt for Argyll & Bute Care & Repair was £226,207 (2023: £429,882).
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.
Health & Social Care Partnership - HSO Temporary Officer Post - The project is funded by the Health & Social Care Partnership towards the Temporary officer post which includes equipment and salary funding to conduct the role. This project will include capital and revenue expenditure. The remaining balance of the fund relates to the carrying value of the asset to be released in line with depreciation policy over the useful life of the asset of £11,093.
Fire Alarm Support - The project represents money received from the Scottish Government via Argyll & Bute Council for Argyll and Bute Care and Repair to complete the supply and fit of linked alarm systems under the project criteria in eligible households.
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.
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:
Argyll & Bute Council
The charity received funding totalling £416,159 (2023: £436,516) from Argyll & Bute Council.
Included within Debtors at note 11 is a balance owed from Argyll & Bute Council of £Nil as at 31 March 2023 (2023: £4,230).
Included within Creditors note 12 is a balance owed to Argyll & Bute Council of £4,400 as at 31st March 2024 (2023: £Nil).
At the date of signing, two trustees were in post as elected members of Argyll & Bute Council. These councillors take no part in the decision making process for the funding received by Argyll & Bute Care and Repair.
The charity had no material debt during the year.