Charity registration number SC035936 (Scotland)
Company registration number SC272855 (Scotland)
SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
CONTENTS
Page
Directors' report
1 - 10
Independent auditor's report
11 - 13
Statement of financial activities
14
Balance sheet
15
Statement of cash flows
16
Notes to the financial statements
17 - 30
SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

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 the Memorandum and Articles, 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).

Objectives and activities

The Social Enterprise Academy is the key learning and development organisation in Scotland supporting social entrepreneurs, social enterprises and enterprising third sector organisations. The company designs and delivers learning programmes tailored to the demands of the social enterprise sector, with a focus on individuals and their personal development as leaders and potential leaders of social entrepreneurship. The purpose of these activities is to:

• Strengthen leadership and the position of social entrepreneurs in Scotland.

• Underpin the sustainability of the wider third sector in Scotland.

• Encourage the innovation and creativity that will regenerate communities.

Last year, the Social Enterprise Academy (SEA) made a significant loss. Key accounting errors came to light towards the end of the year, including misclassification of grants paid out under funding contracts, incorrect recording of prior year audit adjustments and significant manual errors in reconciling management accounts to the ledgers. As the scale of the finance issues became clear, a full review of the business was carried out by an external finance director. The executive team and board now have confidence in our management accounts and took action to put in place a robust recovery programme to secure the future of SEA, with the support of our key funders and customers.

 

 

 

SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Achievements and performance
Significant activities and achievements against objectives

This was the fifteenth full year during which the Academy was performing its role as a strategic delivery partner of the Scottish Government. We have been acutely aware of the pressure on public finances during this period and the challenges this poses to the Social Economy.

 

We would like to thank the Scottish Government for their ongoing support during this period – for the Academy but more importantly for the people that the Academy serves. Outcome specific investment was received from the Scottish Government (SG) to cover the following areas reflected in an agreed work plan:

 

Bursary backed programme – this exists to ensure learning and development aimed at increasing sustainability is affordable for organisations in the wider third sector. The Academy delivered programmes related to Leadership, Entrepreneurship, and Social Impact Measurement to over 100 organisations with this support.

 

Schools Programme – Scottish Government have tasked the Academy with making the Social Enterprise Schools programme available to every school in Scotland. We continued to work across Scotland including the delivery of programmes in the Gaelic medium across the Islands of Scotland.

SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

Rural Bursary - the Academy continues to target resources to support social enterprises in the rural south of Scotland as well as the Highlands. We continue to work with South of Scotland Enterprise and Highlands and Islands Enterprise in this endeavour.

 

Just Enterprise – the Academy continues to be an active member of the Just Enterprise consortium delivering Leadership development to the sector as part of this programme tendered by the Scottish Government. Demand continues to be high for these programmes.

 

We continue to sell programmes to organisations within the third and public sector who can afford to pay for learning and development. Over 60% of the Academy’s domestic income for adult programmes is generated through sales.

 

Private Sector – the Academy continues to develop sponsorship relationships, partnerships and client sales with parts of the private sector. We continue to explore this area as a potential growth area for the Academy. We enjoyed an ongoing relationship with SAP who continue to engage staff in support of our schools work in areas where their staff live. This relationship of staff development and retention of corporate employees with support of community work was also contracted by Aegon who ran a similar programme with the Academy in Edinburgh during this period.

 

OTHER ACTIVITIES

 

International Work

Mel Young, founder of the Homeless World Cup suggested that “If, as a social Enterprise, you are doing something pretty neat, you have a duty to share it”. Since 2012, the Academy has been sharing its model internationally through direct delivery and through a series of partnership arrangements with country level hubs. These have been most successful in Australia, South Africa, Canada, Egypt and Sweden.

 

Following on from re-structuring last year, the Academy continues to focus on domestic delivery in the UK and work in and through partners for our increased reach and impact internationally. We continued to work in terms of direct delivery with Movember and IKEA during this period and on some selected European projects.

Financial review

During the year the charity generated incoming resources of £2,571,399 (2023:£2,553,085) and incurred expenditure of £3,322,253 (2023:£2,591,741). This resulted in a deficit of £750,854 for the year (2023: deficit of £38,656). The charity has net liabilities of £529,932 all of which are unrestricted (2023 : net assets £220,922).

SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
Going concern

During the course of the year, the Academy encountered significant challenges stemming from the unexpected long-term absence of key finance personnel. The strain on our finance function was further compounded by a move to a new finance system and the merger of SEA International C.I.C. during the period. Towards the end of the year, a number of key accounting errors came to light, including misclassification of grants paid out under funding contracts, incorrect recording of prior year audit adjustments and significant manual errors in reconciling management accounts to the ledgers.

The resulting provision of inaccurate reporting of the company’s financial position significantly compromised the ability of the executive team and board to take action and regrettably flawed business decisions were made. As the scale of the finance issues became clear, a full review of the business was carried out by an external finance director and lessons have been learned. The finance team has been reconfigured and upskilled, a robust financial control framework has been implemented and improved forecasting procedures and mechanisms have been put in place. These changes and the consequential accurate and timely reporting this has enabled ensures that the mistakes of the past will not be repeated.

The executive team and board now have confidence in our management accounts and have taken action to put in place a robust recovery programme to secure the future of SEA.

Board and Senior Leadership Team (SLT) are actively working to develop a five-year business plan to drive recovery. During this period, recovery loans will play a critical role in supporting our efforts. The Scottish Government has reaffirmed its commitment to retaining the Social Enterprise Academy as a strategic delivery partner under the current 10-year strategy, which runs until 2026. Additionally, the Social Enterprise Ecosystem, of which the Academy is an active member, is collaborating with the Scottish Government to shape a new 10-year strategy.

To diversify income streams, the Academy is adopting a strategic approach to building partnerships within the private sector through the creation of a Learning Trust. This initiative aims to enhance the Learning and Development agenda within the social economy. Early progress has been encouraging, as demonstrated by partnerships with Experian, SAP, and Aegon. Alongside this, we remain committed to closely monitoring costs against income within the framework of the recovery plan, ensuring we adapt expenditures to align with available resources.

The Board have also given careful consideration to the question of the Academy’s status as a going concern. After seeking professional advice, we are in agreement that the Academy remains a going concern.

Reserves policy

 

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 between three and six 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.

 

As at 31st March 2024, the Charity had net liabilities of £529,932, all are regarded as unrestricted, after allowing for funds tied up in non liquid assets. Actual three-months of charitable expenditure is £830,563.

The Directors have agreed a five year recovery plan to address this situation and restore the reserves.

 

SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
Principal funding sources

 

The funding landscape remains challenging for the social economy, particularly within Learning and Development. As organizations contend with difficult economic conditions, discretionary spending is often reduced. To address this, the Senior Leadership Team (SLT) and Board have been actively exploring alternative income sources.

 

This year has been challenging in terms of financial performance at the Academy. However, the Directors, in collaboration with the Senior Leadership Team, have taken decisive action to address the situation and are confident that a robust recovery plan is now in place. This plan includes the improvements outlined earlier, such as enhancements to management accounting systems and processes, alongside a comprehensive review of products, markets, and profitability. In addition, cost reductions exceeding £300,000 have been achieved to create a solid foundation for recovery.

Investment policy

Under the Memorandum and Articles of Association, the charity has the power to invest any money that it does not immediately require in any investments, securities or properties. As there are few funds available for long-term investment the Trustees, having regard to the liquidity requirements of operating the charity and to the reserves policy, have operated a policy of keeping available funds in an interest-bearing bank account.

Plans for future periods

Domestically: the status of the Academy as a strategic delivery partner of the Scottish Government will continue. This status was underpinned by a 3-year funding arrangement for the period 2021 to 2024, which in turn is supported by a 10-year Strategy which was co-produced with the sector and continues until 2026. The Academy is an active member of the Eco-System in Scotland and will be involved in the creation of the next 3-year Action Plan for Social Enterprise in Scotland, when the current one ends at the end of the next financial year.

 

We will continue to work across the UK to support social entrepreneurship and are committed to working with partners to support organisations they invest in. We see this strategic partnership role, working with key funders of the social economy to increase the chances of the organisations they invest in being successful.

 

Internationally: During this period, the Academy will continue to work in partnership with hubs around the world and focus on joint delivery in the international arena where appropriate. We continue to make our programmes available through our network of partners in Australia, Malaysia, Sweden, Egypt, South Africa and Canada.

 

In addition to this we will continue to play an active role within international networks such as Social Enterprise World Forum; the Inner Development Goals movement; the Global Association of Investment Networks and its members such as Impact Europe and Asian Venture Philanthropy Network.

 

Young People: We continue to develop strategic plans at a local authority level in Scotland to support the creation of a social enterprise in every school in Scotland. Having proven the concept of Social Enterprise Schools in London in the last year and a half, we are ready and motivated to scale this across other parts of the UK. The annual awards, where schools receive recognition for their work; Dragon’s dens, where the young people present their plans; and the ongoing partnership with the Big Issue magazine, where the young peoples’ work is showcased across the UK all remain integral parts of the programme.

 

We continue to work with other key partners from the social economy such as Kibble, FirstPort, Social Enterprise Scotland, the social enterprise networks to embed Learning and Development for Social Change effectively to support fairer communities in Scotland.

SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
Structure, governance and management

The charity is a company limited by guarantee governed by its Memorandum dated 26 August 2004 and Articles of Association adopted by special resolution on 23 November 2006 and subsequently amended and adopted by special resolution on 9 June 2016. It is a registered Scottish Charity.

The Social Enterprise Academy designs and delivers educational programmes and professional development in leadership and business skills for social entrepreneurs and those involved in social enterprise.

The directors who served during the year and up to the date of signature of the financial statements were:

 

Ms Y Strachan
(Resigned 17 June 2024)
Ms H Dent
(Resigned 17 June 2024)
Mr P Chowdhry
Mr R Brinkman
Ms J Waites
Mr G Kinsman-Chauvet
Ms J Drybrough
(Appointed 7 December 2023)
Ms J Kennedy
(Appointed 4 May 2023 and resigned 13 January 2025)
Dr J Wasim
(Appointed 7 December 2023)
Mr A Watt
(Appointed 2 May 2024)
Recruitment and appointment of trustees

The Articles provide for a maximum of twelve directors and a minimum of three. A person automatically becomes a director of the company upon his/her admission to membership. Membership is open to any individual wishing to support the aims and activities of the company who has been nominated for membership by three directors of the company and supported by 75% of the directors in office.

SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
Organisational structure

Charity name

Social Enterprise Academy (Scotland)

 

Charity number

SC035936

 

Company number

SC272855

 

Registered office and

principal address

Thorn House

5 Rose Street

Edinburgh

EH2 2PR

 

Directors

Yvonne Strachan (Chairperson)

Paul Chowdhry

Roland Brinkman

Julie Waites

Hannah Dent

Gregory Kinsman-Chauvet

Johann Kennedy (Appointed 4th May 2023)

Jahangir Wasim (Appointed 7th December 2023)

Julie Drybrough ( Appointed 7th December 2023)

Allan Watt ( Appointed 2nd May 2024)    

 

Chief Executive

Neil McLean

 

Auditors

Thomson Cooper

3 Castle Court

Carnegie Campus

Dunfermline

Fife

KY11 8PB

 

Bankers

Triodos Bank NV

Brunel House

11 The Promenade

Bristol

BS8 3NN

SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -

The full board of directors meets quarterly. The Board also spends a day each year undertaking a strategic review and forward planning for the organisation.

A finance subcommittee has delegated authority to consider matters of a financial nature including budget management. Management accounts are prepared monthly and this sub committee meets on a quarterly basis by arrangement to review them.

A Nominations Subcommittee has responsibility to oversee board member recruitment, induction and training.

Advisory groups are also in place to provide guidance to both the Global Learning Lab and the Education team. The Global Learning Lab has delegated responsibility to review all aspects of quality improvement within the context of the European Framework for Quality Management which was successfully introduced to the organisation on 5th August 2013 (date formally approved by European Framework for Quality Management).

The CEO produces a report of the organisation’s progress to the directors on a quarterly basis. The CEO has delegated powers to make day-to-day decisions regarding operations. A work plan and budget is agreed between the CEO and the directors and if there is significant variation required, this is referred to the directors for approval.

Our subsidiary company SEA International CIC has its own Board of Directors who meet quarterly.

Induction and training of trustees

After appointment/co-option an induction programme is offered to all new directors. In addition, all directors receive an information pack that contains the Memorandum and Articles of Association, roles and responsibilities of being a director, and background information on the organisation.

Remuneration policy

Key management personnel of the charity are the Directors and the Chief Executive Officer, Neil McLean, who is charged with the day to day running of the charity. All directors give of their time freely and no directors’ remuneration was paid in the year. Details of directors’ expenses and related party transactions are disclosed in the notes to the financial statements.

Directors are required to disclose all relevant interests and register them with the Chief Executive and in accordance with the Company’s policy withdraw from discussions where a conflict of interest arises. No conflicts of interest arose during the financial year.

The pay of the company’s Chief Executive is reviewed annually and is currently on a ratio of 3 to 1 with the company’s administrative staff which the directors consider to be a fair and reasonable multiple. The remuneration is also bench-marked with charitable companies of a similar size and activity to ensure that the remuneration set is fair and not out of line with that generally paid for similar roles.

Relationship with related parties

The Social Enterprise Academy (Scotland) co-operates with other social enterprises throughout Scotland, the rest of the UK and Europe. The Academy currently has a reliance on Government funding for a significant amount of delivery of learning programmes, as is demonstrated in notes 3 and 4 to the financial statements.

SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
Statement of directors' responsibilities

The directors, who also act as trustees for the charitable activities of Social Enterprise Academy (Scotland), 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; 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.

Auditor

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.

Risk Management

The Board’s annual strategic review and forward planning event considers the risks to which the charity is exposed and identifies what needs to be in place to manage these risks throughout the year. In addition, a risk register is maintained by the CEO and staff which is presented to the board on a quarterly basis. The risks faced by the company fall into two categories, internal and external.

Internal risks are minimised by the implementation of procedures for authorisation of transactions and activities and to ensure consistent quality of delivery for all operational aspects of the company. A scheme of delegation is in place for payment authorisation and this has been agreed with the finance subcommittee.

Financial risks are monitored within the executive team on a monthly basis with the scrutiny of cash flow, balance sheets and profitability statements.

External risks relate largely to the sustainability of the company and the blended nature of income streams with much of the charitable work of the organisation dependent on the provision of grants by external bodies including the Scottish Government. This is augmented by the delivery of learning programmes to organisations who can afford to purchase these on behalf of their staff, or beneficiaries. There continues to be growing demand for the delivery of learning programmes both in Scotland and beyond which is indicative of the Academy’s strategy to reduce reliance on grant funding by public bodies. Independent grant funding including an increased level of interest in the social economy by corporate foundations also looks likely to mitigate this risk.

Any variation from the business plan has an associated risk assessment that is presented to the board of directors for consideration and approval.

The Board are aware of the growing risk of cyber-attack and have taken appropriate steps to protect the company including additional security and back up facility with our IT provider and a comprehensive training programme for all staff.

SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -

The directors' report was approved by the Board of Directors.

Mr A Watt
Director
26 March 2025
SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
INDEPENDENT AUDITOR'S REPORT
TO THE DIRECTORS OF SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
- 11 -

Opinion

We have audited the financial statements of Social Enterprise Academy (Scotland) (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:

-

give a true and fair view of the state of the charitable company's affairs as at 31 March 2024 and of its incoming resources and application of resources, for the year then ended;

-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-

have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).

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.

Conclusions relating to going concern

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.

SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE DIRECTORS OF SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
- 12 -
Matters on which we are required to report by exception

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.

Responsibilities of directors

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.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which the audit was capable of detecting irregularities, including fraud

We considered the opportunities and incentives that may exist within the group 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 manipulating the Charity’s key performance indicators to meet targets. 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 trustees 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.

SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE DIRECTORS OF SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
- 13 -

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the officers and other management (as required by the auditing standards).

 

We reviewed the laws and regulations in areas that directly affect the financial statements including applicable charity and company law and considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.

 

With the exception of any known or possible non-compliance with relevant and significant laws and regulations, and as required by the auditing standards, our work in respect of these was limited to enquiry of the officers and management of the charity.

 

We communicated identified laws and regulations and potential fraud risks throughout our team and remained alert to any indications of non-compliance or fraud throughout the audit. However the primary responsibility for the prevention and detection of fraud rests with the trustees.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

 

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charity’s directors, as a body, in accordance with Section 44(1) (c) of the Charities and Trustees Investment (Scotland) Act 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.

Fiona Haro (Senior Statutory Auditor)
for and on behalf of Thomson Cooper. Statutory Auditors
Dunfermline
28 March 2025

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.

SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
Unrestricted
Restricted
Total
Unrestricted
funds
funds
funds
2024
2024
2024
2023
Notes
£
£
£
£
Income from:
Donations and legacies
2
83,592
-
83,592
23,531
Charitable activities
3
1,885,174
583,187
2,468,361
2,430,569
Other trading activities
4
18,800
-
18,800
97,891
Investments
5
646
-
646
1,094
Total income
1,988,212
583,187
2,571,399
2,553,085
Expenditure on:
Raising funds
6
11,402
-
11,402
-
Charitable activities
7
2,727,664
583,187
3,310,851
2,591,741
Total expenditure
2,739,066
583,187
3,322,253
2,591,741
Net expenditure and movement in funds
(750,854)
-
(750,854)
(38,656)
Reconciliation of funds:
Fund balances at 1 April 2023
220,922
-
220,922
259,578
Fund balances at 31 March 2024
(529,932)
-
(529,932)
220,922

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 15 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
14
61,777
8,086
Tangible assets
15
21,085
33,466
Investments
16
2,100
2,100
84,962
43,652
Current assets
Debtors
17
113,252
482,403
Cash at bank and in hand
160
210,703
113,412
693,106
Creditors: amounts falling due within one year
19
(615,046)
(345,224)
Net current (liabilities)/assets
(501,634)
347,882
Total assets less current liabilities
(416,672)
391,534
Creditors: amounts falling due after more than one year
20
(113,260)
(170,612)
Net (liabilities)/assets
(529,932)
220,922
The funds of the charity
Unrestricted funds
24
(529,932)
220,922
(529,932)
220,922

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the directors on 26 March 2025
Mr A Watt
Director
Company registration number SC272855 (Scotland)
SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
28
(172,067)
(684,910)
Investing activities
Purchase of intangible assets
(70,003)
-
Purchase of tangible fixed assets
(9,284)
(27,458)
Investment income received
646
1,094
Net cash used in investing activities
(78,641)
(26,364)
Financing activities
Repayment of bank loans
(67,744)
(38,410)
Net cash used in financing activities
(67,744)
(38,410)
Net decrease in cash and cash equivalents
(318,452)
(749,684)
Cash and cash equivalents at beginning of year
210,703
960,387
Cash and cash equivalents at end of year
(107,749)
210,703
Relating to:
Cash at bank and in hand
160
210,703
Bank overdrafts included in creditors payable within one year
(107,909)
-
SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
1
Accounting policies
Charity information

Social Enterprise Academy (Scotland) is a private company limited by guarantee incorporated in Scotland. The registered office is Social Enterprise Scotland, Thorn House, 5 Rose Street, Edinburgh, EH2 2PR.

1.1
Accounting convention

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), the Companies Act 2006, 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.

1.2
Going concern

The charity recorded a loss of £750,854 (2023: loss £38,656) during the year. At 31st March 2024 the charity had net current liabilities of £501,634 (2023: assets £347,882) and a balance sheet deficit of £529,932 (2023: surplus £220,922).

The current and future cash position of the charity has been reviewed by the Board. This included a comprehensive review of the financial projections and cash-flow requirements, covering a period beyond one year from the date of approval of the financial statements. These forecasts were prepared using assumptions which the directors consider appropriate to the financial position of the charity and its future anticipated revenues and costs.

Specific consideration has been given to:

 

The directors acknowledge that the charities’ liquidity position relies on the directors continuing to review the budgets and ensure that costs are controlled but project that the liquidity position will further strengthen over the next 12 months due to improved financial performance.

 

The directors acknowledge that the charity’s liquidity position is reliant on the above key assumptions and without this a material uncertainly would exist which may cast doubt over the charity’s ability to continue as a going concern.

 

After due consideration of the above, the directors are satisfied that the charity has access to adequate resources to continue in operational existence for period of at least twelve months from the date of approval of the financial statements. The directors therefore continue to adopt the going concern basis of accounting in preparing the financial statements.

 

 

SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
1.3
Charitable funds

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.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.4
Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

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.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
1.5
Expenditure

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.

1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Website
33.33% Straight Line
Branding
10% Straight Line
Learning Management System
20% Straight Line
SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -
1.7
Tangible fixed assets

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:

Website Development
33.3% on a straight line basis
Office Equipment
33.3% on a straight line basis
Computer Equipment
33.3% on a straight line basis

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.

1.8
Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the charity holds a long-term interest and where the charity has significant influence. The charity considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Other investments are measured at cost less impairment on the basis that they represent a bond holding in an entity that is not publicly traded and the fair value cannot otherwise be measured reliably.

 

The charity is considered the parent undertaking of its 100% owned subsidiary company Social Enterprise Academy International C.I.C. which is incorporated in Scotland (SC544394). Its registered office address is Thorn House, 5 Rose Street Edinburgh, EH2 2PR.

1.9
Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible and intangible 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).

1.10
Cash and cash equivalents

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.

SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 20 -
1.11
Financial instruments

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

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

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.12
Employee benefits

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.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2
Income from donations and legacies
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Donations and gifts
83,592
23,531
SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
3
Charitable activities
2024
2023
£
£

Programme Fee Income

678,946
724,614

Grants Receivable

1,789,415
1,705,955
2,468,361
2,430,569
Analysis by fund
Unrestricted funds
1,885,174
2,430,569
Restricted funds
583,187
-
2,468,361
2,430,569
Grants Receivable
Grants
992,935
326,955
Scottish Government
796,480
1,379,000
1,789,415
1,705,955
4
Other trading activities
Total
Total
2024
2023
£
£

Management fees charged to trading subsidiary

-
51,027

Fundraising Income

-
10,200

Sponsorship Income

-
27,500
Trading activity income: other
18,800
9,164
Other trading activities
18,800
97,891
5

Investments

Total
Total
2024
2023
£
£
Interest receivable
646
1,094
SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
6
Expenditure on raising funds
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Fundraising and publicity
Seeking donations, grants and legacies
11,402
-
7
Charitable activities

Education & Training Programmes

Education & Training Programmes

2024
2023
£
£
Staff costs
1,635,559
1,733,252

Staff recruitment

6,432
14,655

Staff travel, subsistence and other costs

100,460
84,290

Consultancy

74,667
60,102

Marketing and Publicity

53,017
55,324

Programme Delivery

783,713
489,631

Courses and Conferences

527
-
2,654,375
2,437,254
Grant funding of activities (see note 8)
370,963
-
Share of support costs (see note 9)
250,145
149,055
Share of governance costs (see note 9)
35,368
5,432
3,310,851
2,591,741
Analysis by fund
Unrestricted funds
2,727,664
2,591,741
Restricted funds
583,187
-
3,310,851
2,591,741

 

SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
8
Grants payable
Education & Training Programme
2024
£
Grants to institutions:
National Lottery Heritage Fund Distribution
370,963
9
Support costs

The charitable group initially identifies the costs of its support functions. It then identifies those costs which relate to the governance function. Having identified its governance costs, the remaining support costs, together with the governance costs are apportioned between its key charitable activities undertaken. Refer to the note below for the basis of the apportionment and the analysis of support and governance costs.

Support costs
Governance costs
2024
Support costs
Governance costs
2023
£
£
£
£
£
£
Depreciation
37,977
-
37,977
19,781
-
19,781

Premises Costs

75,552
-
75,552
54,848
-
54,848

Telephone

7,513
-
7,513
11,418
-
11,418

Postage and Stationery

22,553
-
22,553
15,834
-
15,834

Bank charges

1,318
-
1,318
1,674
-
1,674

Loan interest

19,046
-
19,046
13,298
-
13,298

IT Equipment and Maintenance

79,689
-
79,689
33,334
-
33,334

Consultancy Fees

-
-
-
(4,913)
-
(4,913)

Subscriptions

6,486
-
6,486
3,710
-
3,710
Sundry expenses
11
-
11
-
-
-
Audit fees
-
16,654
16,654
-
5,432
5,432
Legal and professional
-
17,855
17,855
-
-
-

Board Travel and Subsistence

-
859
859
-
71
71
250,145
35,368
285,513
148,984
5,503
154,487

Governance costs includes payments to the auditors of £16,654 (2023- £5,432) for audit fees.

 

All costs are allocated to activities on a direct basis, with the exception of staff costs which are allocated on the basis of time spent.

SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
10
Net movement in funds
2024
2023
£
£
The net movement in funds is stated after charging/(crediting):
Fees payable for the audit of the charity's financial statements
16,654
5,432
Depreciation of owned tangible fixed assets
21,665
19,781
Amortisation of intangible assets
16,312
-
11
Directors
None of the directors (or any persons connected with them) received any remuneration or benefits from the charity during the year.
12
Employees

The average monthly number of employees during the year was:

2024
2023
Number
Number
Total
48
49
Employment costs
2024
2023
£
£
Wages and salaries
1,420,774
1,529,688
Social security costs
121,534
119,182
Other pension costs
93,251
84,382
1,635,559
1,733,252

The total amount of employee benefits received by key management personnel of the charity is £76,861 (2023: £64,790). The charity considers its key management personnel to be the directors and Chief Executive Officer, Neil McLean.

 

Travel and Accommodation costs amounting to £324 (2023: £71) were paid in respect of all members of the board of directors. No directors received any remuneration during the year.

 

Included within wages and salary costs are payments totalling £nil (2023: £nil) made to staff in connection with cessation of employment.

The number of employees whose annual remuneration was more than £60,000 is as follows:
2024
2023
Number
Number
£60,000 to £70,000
1
-
SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
13
Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

14
Intangible fixed assets
Website
Branding
Learning Management System
Total
£
£
£
£
Cost
At 1 April 2023
55,686
-
-
55,686
Additions - transfer from subsidiary
11,760
24,885
9,116
45,761
Additions - separately acquired
24,242
-
-
24,242
At 31 March 2024
91,688
24,885
9,116
125,689
Amortisation and impairment
At 1 April 2023
47,600
-
-
47,600
Amortisation charged for the year
14,489
-
1,823
16,312
At 31 March 2024
62,089
-
1,823
63,912
Carrying amount
At 31 March 2024
29,599
24,885
7,293
61,777
At 31 March 2023
8,086
-
-
8,086
15
Tangible fixed assets
Office Equipment
Computer Equipment
Total
£
£
£
Cost
At 1 April 2023
11,167
78,040
89,207
Additions
1,338
7,710
9,048
Business combinations
236
-
236
At 31 March 2024
12,741
85,750
98,491
Depreciation and impairment
At 1 April 2023
9,726
46,015
55,741
Depreciation charged in the year
1,515
20,150
21,665
At 31 March 2024
11,241
66,165
77,406
Carrying amount
At 31 March 2024
1,500
19,585
21,085
At 31 March 2023
1,441
32,025
33,466

 

SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
16
Fixed asset investments
Other investments
Cost or valuation
At 1 April 2023 & 31 March 2024
2,100
Carrying amount
At 31 March 2024
2,100
At 31 March 2023
2,100
2024
2023
Other investments comprise:
Notes
£
£
Investments in subsidiaries
27
100
100
Other Investments
2,000
2,000
2,100
2,100
17
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
47,903
149,671
Amounts owed by fellow group undertakings
13,987
247,443
Other debtors
15,367
68,879
Prepayments and accrued income
35,995
16,410
113,252
482,403
18
Loans and overdrafts
2024
2023
£
£
Bank overdrafts
107,909
-
Bank loans
158,846
226,590
266,755
226,590
Payable within one year
153,495
55,978
Payable after one year
113,260
170,612

The bank overdraft is secured on the assets of the company by way of a floating charge.

SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
19
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
18
153,495
55,978
Other taxation and social security
185,577
34,190
Deferred income
21
126,475
170,000
Trade creditors
126,740
72,744
Other creditors
10,539
7,512
Accruals
12,220
4,800
615,046
345,224
20
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans
18
113,260
170,612
21
Deferred income
2024
2023
£
£
Other deferred income
126,475
170,000

Deferred income is included in the financial statements as follows:

2024
2023
£
£
Deferred income is included within:
Current liabilities
126,475
170,000
Movements in the year:
Deferred income at 1 April 2023
170,000
547,300
Released from previous periods
(170,000)
(547,300)
Resources deferred in the year
126,475
170,000
Deferred income at 31 March 2024
126,475
170,000
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
93,251
84,382
SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
22
Retirement benefit schemes
(Continued)
- 28 -

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.

23
Restricted funds

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.

At 1 April 2023
Incoming resources
Resources expended
At 31 March 2024
£
£
£
£
National Lottery Heritage Fund
-
583,187
(583,187)
-

This grant funding was received from National Heritage Lottery Fund for delivery of our Steps to Sustainability programme.

 

24
Unrestricted funds

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 1 April 2023
Incoming resources
Resources expended
At 31 March 2024
£
£
£
£
General funds
220,922
1,988,212
(2,739,066)
(529,932)
Previous year:
At 1 April 2022
Incoming resources
Resources expended
At 31 March 2023
£
£
£
£
General funds
259,578
2,553,085
(2,591,741)
220,922
SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 29 -
25
Operating lease commitments
Lessee

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:

2024
2023
£
£
Within one year
21,770
10,413
Between two and five years
42,106
-
63,876
10,413
26
Related party transactions

At the year end, there was an intercompany balance between the charity and its subsidiary company relating to expenses paid by the company on behalf of the subsidiary company. A balance of £13,986 (2023: £247,443) remains outstanding to the company as at the year end and is included within debtors. A management charge of £nil (2023: £51,027) was received from Social Enterprise Academy International C.I.C. to the parent charity Social Enterprise Academy Scotland during the year.

 

27
Subsidiaries

Details of the charity's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Social Enterprise Academy International C.I.C.
Scotland
Dormant
Ordinary
100.00
28
Cash generated from operations
2024
2023
£
£
Deficit for the year
(750,854)
(38,656)
Adjustments for:
Investment income recognised in statement of financial activities
(646)
(1,094)
Amortisation and impairment of intangible assets
16,312
-
Depreciation and impairment of tangible fixed assets
21,665
19,781
Movements in working capital:
Decrease/(increase) in debtors
369,151
(285,820)
Increase/(decrease) in creditors
215,830
(1,821)
(Decrease) in deferred income
(43,525)
(377,300)
Cash absorbed by operations
(172,067)
(684,910)
SOCIAL ENTERPRISE ACADEMY (SCOTLAND)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 30 -
29
Analysis of changes in net (debt)/funds
At 1 April 2023
Cash flows
At 31 March 2024
£
£
£
Cash at bank and in hand
210,703
(210,543)
160
Bank overdrafts
-
(107,909)
(107,909)
210,703
(318,452)
(107,749)
Loans falling due within one year
(55,978)
10,392
(45,586)
Loans falling due after more than one year
(170,612)
57,352
(113,260)
(15,887)
(250,708)
(266,595)
2024-03-312023-04-01falsefalseCCH SoftwareiXBRL Review & Tag 2024.2SC2728552023-04-012024-03-31SC272855bus:Director12023-04-012024-03-31SC272855bus:Director22023-04-012024-03-31SC272855bus:Director32023-04-012024-03-31SC272855bus:Director42023-04-012024-03-31SC272855bus:Director52023-04-012024-03-31SC272855bus:Director62023-04-012024-03-31SC272855bus:Director72023-04-012024-03-31SC272855bus:Director82023-04-012024-03-31SC272855bus:Director92023-04-012024-03-31SC272855bus:Director102023-04-012024-03-31SC2728552024-03-31SC2728552023-03-31SC2728552022-04-012023-03-31SC272855bus:FRS1022023-04-012024-03-31SC272855bus:Audited2023-04-012024-03-31SC272855bus:FullAccounts2023-04-012024-03-31xbrli:purexbrli:sharesiso4217:GBP