Charity registration number SC20909 (Scotland)
Company registration number SC060925
GARVALD WEST LINTON LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
GARVALD WEST LINTON LTD
LEGAL AND ADMINISTRATIVE INFORMATION
Charity number (Scotland)
SC20909
Company number
SC060925
Registered office
Garvald House
Dolphinton
West Linton
EH46 7HJ
Auditor
Thomson Cooper
22 Stafford Street
Edinburgh
EH3 7BD
Bankers
The Royal Bank of Scotland
36 St Andrew Square
Edinburgh
EH2 2AD
GARVALD WEST LINTON LTD
CONTENTS
Page
Directors' report
1 - 5
Independent auditor's report
6 - 8
Statement of financial activities
9 - 10
Balance sheet
11
Statement of cash flows
12
Notes to the financial statements
13 - 27
GARVALD WEST LINTON LTD
DIRECTORS' REPORT (INCLUDING DIRECTOR'S REPORT)
FOR THE YEAR ENDED 31 AUGUST 2024
- 1 -

The trustees who are also directors present their annual report and financial statements for the year ended 31 August 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 Memorandum and Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

Structure, governance and management

Governing Document

 

Garvald West Linton Limited is a charitable company limited by guarantee and is governed by its Memorandum and Articles of Association dated 1976, amended Articles of Association adopted 25 November 2017. The liability of each member is limited to £1. It is a registered charity with the Office of the Scottish Charity Regulator (OSCR) and its residential and day service is registered and monitored by the Care Inspectorate.

 

The directors who served during the year and up to the date of signature of the financial statements are detailed below. In terms of the Articles of Association, 2 directors retire by rotation and need re-elected. During the period two new director’s were appointed and two retired.

 

Directors did not receive any remuneration.

 

 

Directors

Steven Whalley (Chair)

Mike Casey

Sydney Smith (resigned 23/7/24)

Vincent D'Agostino

Gillian Learmonth (resigned 25/3/25)

Rennie Gardner

Sophie Pilgrim (appointed 2/4/24)

Hannah Cairns (appointed 2/4/24)

 

Secretary

Craig McGregor

 

Chief Executive Officer (CEO)

Craig McGregor

GARVALD WEST LINTON LTD
DIRECTORS' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -

Appointment of new Directors

Directors are elected at the Company’s Annual General meeting and can be appointed during the year by the Board of Directors. A Director shall be entitled to hold office for three years and is eligible for re-election.

 

Recruitment of new Directors

The Directors are recruited to maintain a balance of skills within the Board. Most appointments come from parties who already know the work of Garvald West Linton and who have visited and attended events held at Garvald. The number of directors now stands at five and we are actively seeking new recruits with the skills we need at Board level.

 

Induction and Training of Directors

New directors are briefed on their legal obligations under charity law, the content of the Memorandum and Articles of Association, the committee and decision-making processes, and recent performance of the charity. Directors are encouraged to attend appropriate external training events where these facilitate the undertaking of their role. A new directors induction programme is now in place.

Structure

The Board of Directors appoints the CEO, Residential, Manager, Day Service Manager, Finance Manager, and other key management posts and is available to assist on more complex issues. The managers are responsible for placement of residents, the engagement and training of staff and the day to day management of the Residential Home and Day Service. The Finance Manager reports to the CEO and the Board of Directors. The Directors meet on six occasions a year to receive management and financial reports from the CEO, Residential Manager, Finance Manager and Day Services Manager.

Key Management Remuneration Policy

The key management of the charity during the year consisted of the CEO, Residential Manager, Day Service Manager and Finance Manager. Salaries are reviewed each year in line with Local Authority/COSLA pay settlements.

Risk Management

The Board have identified and addressed the following main risk areas facing the charity as follows:

 

 

 

 

 

The directors regularly review all risks to which the charity is exposed and the procedures in place to manage these risks. The company risk register was updated and a substantial review took place. All risk factors have been graded in terms of likelihood to occur, impact, control procedure and responsibility.

GARVALD WEST LINTON LTD
DIRECTORS' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -
Objectives and activities

Garvald West Linton offers care, support and training in both residential and day settings for adults with learning disabilities. The organisation is founded on the Philosophy of Rudolf Steiner

 

There are five houses for residents and staff and in addition, a varied day centre provision of workshops and other activities both within Garvald West Linton and in the local community.

Achievements and performance

The number of residents increased by 1 in this year to 32. There are currently 10 non-residents using the Day Services.

 

Fees rates were increased by 7.24% by local authorities to ensure that Garvald West Linton staff would earn the Real Living Wage. Not all local authorities increased the fees to cover the previous year’s inflationary increase. Fees are set by our Home Local Authority and others should follow per the COSLA agreement.

 

Recruitment has improved due to our successful application for and management of a UKVI Sponsorship Licence. This has brought us 17 staff from around the world.

 

Despite the ongoing social care crisis we have continued to show sector leading levels of staff retention and sickness absence throughout the year – further credit to all our staff.

Financial review

The financial statements follow on pages 9 to 27. These statements are prepared in terms of the Charities SoRP FRS 102 and the Companies Act 2006.

 

The charity had total incoming resources on its Operations Fund of £3,797,777 (2023: £3,338,496) and total expenditure of £3,540,552 (2023: £3,451,995), resulting in an operating surplus for the year of £257.225 (2023 deficit of £113,499).

 

The designated funds had incoming resources of £nil (2023: £1,000) and total expenditure of £93,109 (2023: £161,587), resulting in a deficit before transfers of £93,109 (2023 : £160,587).

Cost saving measures along with a much appreciated Rent Holiday from Garvald Trust resulted in a surplus for the year of £192,902 (2023 Deficit : £273,602) An increase in additional support hours some of which were backdated from the previous year also contributed. Some Property Maintenance was postponed and will affect future years.

 

The financial year has been challenging with the continued inflationary impact on a relatively fixed cost base. There have been added costs in relation to staff recruitment from abroad, although this has resulted in a reduction in staffing shortages.

The current policy is to maintain free reserves sufficient to fund the equivalent of six months expenditure. The Directors acknowledge that they have not reached this target but are working on a Strategic Supported Living Plan to enable surpluses in future years to meet a revised but more realistic objective. The increase in this financial period to August 2024 is £167,951 (2023 decrease: £237,338).

 

An analysis of Net Assets between Reserve Funds is disclosed in note 19 of the accounts.

 

The designated funds represent expenditure made on fixed assets less depreciation and less liabilities outstanding on their acquisition - £1,286,580 and the Inheritance Fund of £30,688.

 

At 31 August 2024 free reserves amounted to £706,799, (2023: £538,848) which is equivalent to 20% of annual expenditure or expenditure for just over 2 months.

GARVALD WEST LINTON LTD
DIRECTORS' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 4 -
Plans for future periods

In response to significant changes to the economic legislative and environmental conditions the organisation has developed a new 5 year strategic plan. The following strategic objectives have been agreed;

 

  1. Secure the future of Garvald through sound finances.

  2. Move to a supported living model for the people we support.

  3. Identify additional meaningful daytime activities.

  4. Provide an environment where staff feel valued.

  5. Improve the infrastructure within Garvald.

  6. Work more closely with organisations where there are synergies.

  7. Develop communications that reflect Garvald’s strengths and aspirations.

 

There are a number of longstanding building and maintenance projects that will require to be completed in the new financial year and will require substantial funding. We are exploring formal fundraising resource for these

 

We are planning to renovate one of our vacant buildings, The Lodge to reduce the numbers in the other houses to the Care Inspectorate’s recommended maximum of 6 The Garvald Trust remain entirely supportive of Garvald West Linton and have confirmed the majority of this funding requirement.

 

The charity plans to work towards a change in registration and funding streams by moving towards a supported living service. It is predicted that this will allow us to ensure long-term viability while giving residents both greater rights over their housing and consistent access to the benefits that adults out-with the residential care setting receive.

Statement of directors' responsibilities

The directors, who also act as trustees for the charitable activities of Garvald West Linton Ltd , are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

 

Company Law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

 

In preparing these financial statements, the directors are required to:

 

- select suitable accounting policies and then apply them consistently;

 

- observe the methods and principles in the Charities SORP;

 

- make judgements and estimates that are reasonable and prudent;

 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

 

The directors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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.

GARVALD WEST LINTON LTD
DIRECTORS' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 5 -
Events after the reporting date

The Trustees are of the opinion that there are no significant Post Balance Sheet Events that would have an impact on charity’s assets.

Disclosure of information to auditor

Each of the directors has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

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

Mr S Whalley
Director
20 May 2025
GARVALD WEST LINTON LTD
INDEPENDENT AUDITOR'S REPORT
TO THE DIRECTORS OF GARVALD WEST LINTON LTD
- 6 -

Opinion

We have audited the financial statements of Garvald West Linton Ltd (the ‘charity’) for the year ended 31 August 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 August 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.

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.

GARVALD WEST LINTON LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE DIRECTORS OF GARVALD WEST LINTON LTD
- 7 -
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 requires 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 considered capable of detecting irregularities, including fraud

We considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: existence and timing of recognition of grant income and the posting of transactions to the correct funds. We discussed these risks with management, designed audit procedures to test the timing and existence of donations and grant income, including reviewing of grant paperwork and terms and conditions, reviewing the allocation of costs against the correct funding and reviewed areas of judgement for indicators of management bias.

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 focused on specific laws and regulations which may have a direct material effect on the financial statements or operation of the charity, including the Charities and Trustees Investment (Scotland) Act 2005, regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended),

 

We assessed the extent of compliance of the laws and regulations identified above by inspecting any legal correspondence, the Care Inspectorate report and making enquiries of management.

 

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

GARVALD WEST LINTON LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE DIRECTORS OF GARVALD WEST LINTON LTD
- 8 -

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 company.

 

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. However, the primary responsibility for the prevention and detection of fraud rests with the trustees. To address the risk of fraud we identified internal controls established to identify risk, performed analytical procedures to identify unusual movements, assessed any judgements and assumptions made in determining accounting estimates, reviewed journal entries for unusual transactions and identified related parties.

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 charity’s trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Fiona Haro (Senior Statutory Auditor)
For and on behalf of Thomson Cooper, Statutory Auditor
Chartered Accountants
22 Stafford Street
Edinburgh
EH3 7BD
21 May 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.

GARVALD WEST LINTON LTD
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2024
- 9 -
Current financial year
Unrestricted
Designated
Restricted
Total
Total
funds
funds
funds
2024
2024
2024
2024
2023
Notes
£
£
£
£
£
Income from:
Donations and legacies
2
291
-
43,332
43,623
6,566
Charitable activities
3
3,787,708
-
-
3,787,708
3,329,184

Investments

4
9,778
-
-
9,778
6,546
Total income
3,797,777
-
43,332
3,841,109
3,342,296
Expenditure on:
Charitable activities
5
3,540,552
93,109
14,546
3,648,207
3,615,898
Net incoming/(outgoing) resources before transfers
257,225
(93,109)
28,786
192,902
(273,602)
Gross transfers between funds
(89,274)
86,723
2,551
-
-
Net income/(expenditure) for the year/
Net movement in funds
167,951
(6,386)
31,337
192,902
(273,602)
Fund balances at 1 September 2023
538,848
1,323,654
7,530
1,870,032
2,143,634
Fund balances at 31 August 2024
706,799
1,317,268
38,867
2,062,934
1,870,032

The statement of financial activities includes all gains and losses recognised in the year.

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

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
GARVALD WEST LINTON LTD
STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2024
- 10 -
Prior financial year
Unrestricted

Designated

Restricted
Total
funds
funds
funds
general
2023
2023
2023
2023
Notes
£
£
£
£
Income from:
Donations and legacies
2
2,766
1,000
2,800
6,566
Charitable activities
3
3,329,184
-
-
3,329,184

Investments

4
6,546
-
-
6,546
Total income
3,338,496
1,000
2,800
3,342,296
Expenditure on:
Charitable activities
5
3,451,995
161,587
2,316
3,615,898
Net incoming/(outgoing) resources before transfers
(113,499)
(160,587)
484
(273,602)
Gross transfers between funds
(123,839)
123,839
-
-
Net income/(expenditure) for the year/
Net movement in funds
(237,338)
(36,748)
484
(273,602)
Fund balances at 1 September 2022
776,186
1,360,402
7,046
2,143,634
Fund balances at 31 August 2023
538,848
1,323,654
7,530
1,870,032
GARVALD WEST LINTON LTD
BALANCE SHEET
AS AT 31 AUGUST 2024
31 August 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
1,384,925
1,466,854
Current assets
Debtors
11
316,448
386,084
Cash at bank and in hand
760,440
609,327
1,076,888
995,411
Creditors: amounts falling due within one year
13
(366,708)
(479,827)
Net current assets
710,180
515,584
Total assets less current liabilities
2,095,105
1,982,438
Creditors: amounts falling due after more than one year
14
(32,171)
(112,406)
Net assets
2,062,934
1,870,032
Income funds
Restricted funds
16
38,867
7,530
Unrestricted funds
Designated funds
18
1,317,268
1,323,654
General unrestricted funds
17
706,799
538,848
2,024,067
1,862,502
2,062,934
1,870,032

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 20 May 2025
Mr S Whalley
Trustee
Company registration number SC060925
GARVALD WEST LINTON LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
23
230,609
(143,484)
Investing activities
Purchase of tangible fixed assets
(11,180)
(68,474)
Proceeds from disposal of tangible fixed assets
-
725
Investment income received
9,778
6,546
Net cash used in investing activities
(1,402)
(61,203)
Financing activities
Repayment of bank loans
(78,094)
(60,059)
Net cash used in financing activities
(78,094)
(60,059)
Net increase/(decrease) in cash and cash equivalents
151,113
(264,746)
Cash and cash equivalents at beginning of year
609,327
874,073
Cash and cash equivalents at end of year
760,440
609,327
GARVALD WEST LINTON LTD
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 13 -
1
Accounting policies
Charity information

Garvald West Linton Ltd is a private company limited by guarantee incorporated in Scotland. The registered office is Garvald House, Dolphinton, West Linton, EH46 7HJ.

1.1
Accounting convention

The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, 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

At the time of approving the financial statements, the directors have a reasonable expectation that the charity has adequate resources to continue in operational existence for a period of 12 months from the date of approval of the financial statements. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

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.

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.
GARVALD WEST LINTON LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 14 -
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
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:

Assets under the course of construction
0% depeciation
Leasehold improvements
40 year and 20 year straight line
Plant, fixtures and furniture
3 year straight line
Motor vehicles
5 year straight line

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.

1.7
Impairment of fixed assets

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).

1.8
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.

1.9
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.

GARVALD WEST LINTON LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 15 -
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.

1.10
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.

1.11
Retirement benefits

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

GARVALD WEST LINTON LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 16 -
2
Donations and legacies
Unrestricted

Designated

Restricted
Total
funds
funds
funds
2024
2024
2024
2024
£
£
£
£
Donations and gifts
291
-
14,602
14,893
Grants
-
-
28,730
28,730
291
-
43,332
43,623
Unrestricted

Designated

Restricted
Total
funds
funds
funds
2023
2023
2023
2023
£
£
£
£
Donations and gifts
2,766
-
2,800
5,566
Legacies receivable
-
1,000
-
1,000
2,766
1,000
2,800
6,566
GARVALD WEST LINTON LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 17 -
3
Charitable activities
2024
2023
£
£

Residential and care fees

3,776,207
3,313,744

Sale of residents work and produce

9,113
10,038
Other income
2,388
5,402
3,787,708
3,329,184
Analysis by fund
Unrestricted funds - general
3,787,708
3,329,184
4

Investments

2024
2023
£
£
Interest receivable
9,778
6,546
GARVALD WEST LINTON LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 18 -
5
Charitable activities
2024
2023
£
£
Staff costs
2,518,464
2,207,695
Depreciation and impairment
86,227
79,588

Other staff costs

108,504
195,759

Establishment costs

355,572
381,253

Household costs

156,866
164,360

Resident costs

43,868
47,267

Other costs

31,094
33,071

Property upkeep

70,258
206,216

Gain/Loss on sale of assets

-
(300)
3,370,853
3,314,909
Share of support costs (see note 6)
228,343
255,024
Share of governance costs (see note 6)
49,011
45,965
3,648,207
3,615,898
Analysis by fund
Unrestricted funds - general
3,540,552
3,451,995
Unrestrcited funds - designated
93,109
161,587
Restricted funds
14,546
2,316
3,648,207
3,615,898
6
Support costs allocated to activities
2024
2023
£
£
Basis of allocation
Staff costs
Staff time
150,011
141,762
Depreciation
Usage
6,882
5,951
Establishment costs
Square footage
16,235
17,372
Other costs
Usage
44,087
54,448
Bank interest
Direct
11,128
12,991
Interest return to Garvald Trust
Direct
-
22,500
Governance costs
Staff time and direct
49,011
45,965
277,354
300,989
Analysed between:
Core
277,354
300,989
GARVALD WEST LINTON LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
6
Support costs allocated to activities
(Continued)
- 19 -
2024
2023
Governance costs comprise:
£
£
Staff costs
28,618
27,453
Audit fees
7,425
7,200
Accountancy
4,305
1,950
Registration and disclosure fees
8,663
9,362
49,011
45,965
7
Directors
None of the directors (or any persons connected with them) received any remuneration or benefits from the charity during the year.
8
Employees

The average monthly number of employees during the year was:

2024
2023
Number
Number
Care Home staff
135
130
Employment costs
2024
2023
£
£
Wages and salaries
2,406,350
2,109,444
Social security costs
180,360
162,846
Other pension costs
85,088
84,008
Life Assurance costs
25,295
20,612
2,697,093
2,376,910

The key management personnel of the charity comprise the CEO, day services manager, residential manager, and finance manager. Their total cost including employer’s pension and national insurance contributions was £185,795 (2023: £177,882).

There were no employees whose annual remuneration was more than £60,000.
9
Taxation

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

GARVALD WEST LINTON LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 20 -
10
Tangible fixed assets
Leasehold improvements
Plant, fixtures and furniture
Motor vehicles
Total
£
£
£
£
Cost
At 1 September 2023
2,090,183
318,965
90,889
2,500,037
Additions
-
11,180
-
11,180
At 31 August 2024
2,090,183
330,145
90,889
2,511,217
Depreciation and impairment
At 1 September 2023
747,529
236,688
48,966
1,033,183
Depreciation charged in the year
53,121
27,527
12,461
93,109
At 31 August 2024
800,650
264,215
61,427
1,126,292
Carrying amount
At 31 August 2024
1,289,533
65,930
29,462
1,384,925
At 31 August 2023
1,342,654
82,277
41,923
1,466,854
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
91,266
166,120
Other debtors
3,609
15,592
Prepayments and accrued income
221,573
204,372
316,448
386,084
12
Loans and overdrafts
2024
2023
£
£
Bank loans
94,371
172,465
Payable within one year
62,200
60,059
Payable after one year
32,171
112,406

The loan granted by Garvald Trust is funded by Royal Bank of Scotland with an interest rate 2.75% above libor.

 

The total capital repayments on the loan is £688,027 commencing 29 July 2013 with 52 quarterly payments.

 

There are no loan payments due after five years (2023 : £nil).

GARVALD WEST LINTON LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 21 -
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
12
62,200
60,059
Other taxation and social security
45,197
42,047
Trade creditors
48,020
77,780
Other creditors
57,929
181,014
Accruals and deferred income
153,362
118,927
366,708
479,827
14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans
12
32,171
112,406
15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
85,088
84,008

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.

GARVALD WEST LINTON LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 22 -
16
Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

At 1 September 2023
Incoming resources
Resources expended
Transfers
At 31 August 2024
£
£
£
£
£
Oil bath fund
4,333
-
-
-
4,333
Hill Cottage fund
150
-
-
-
150
Linden fund
1,000
1,000
-
-
2,000
Rowan fund
1,713
-
-
-
1,713
Willow fund
100
-
-
-
100
The Sensory room
234
-
(1,021)
-
(787)
Roger Raymond Charitable Trust
-
5,000
-
-
5,000
80th Birthday Celebrations
-
23,602
(652)
2,551
25,501
RS MacDonald Charitable Trust
-
12,730
(12,164)
-
566
Cruden Foundation
-
1,000
(709)
-
291
7,530
43,332
(14,546)
2,551
38,867
Previous year:
At 1 September 2022
Incoming resources
Resources expended
Transfers
At 31 August 2023
£
£
£
£
£
Oil bath fund
4,333
-
-
-
4,333
Hill Cottage fund
-
150
-
-
150
Linden fund
1,000
-
-
-
1,000
Rowan fund
1,713
-
-
-
1,713
Willow fund
-
100
-
-
100
The Orcome Trust
-
550
(550)
-
-
The Sensory room
-
2,000
(1,766)
-
234
7,046
2,800
(2,316)
-
7,530
GARVALD WEST LINTON LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
16
Restricted funds
(Continued)
- 23 -

Oil bath fund

To fund the building of an oil bath and cabin.

 

Hill Cottage fund

To fund special requests for expenditure within Hill Cottage.

 

Linden fund

To fund special requests for expenditure within Linden House.

 

Rowan fund

To fund special requests for expenditure within Rowan House.

 

Willow fund

To fund special requests for expenditure within WillowHouse.

 

The Orcome trust

To fund honey bee keeping.

 

The Sensory room

To fund a sensory room, £1,000 grant was requested post year end and received December 2024 to cover expenditure.

Roger Raymond Charitable Trust

Towards new build fund; the new build project was discontinued and Roger Raymond Charitable Trust agreed that the funds could be allocated towards the Lodge renovations.

 

80th Birthday Celebrations

Fundraising to raise funds for outdoor space.

 

RS MacDonald Charitable Trust

Grant funding for replacement ramp.

 

Cruden Foundation

Funding towards music therapy.

GARVALD WEST LINTON LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 24 -
17
Operations Fund

This fund is unrestricted and free to use in accordance with the objectives of the charity.

 

Movement in funds
Balance at
1 September 2023

Incoming resources

Resources expended

Transfers

Balance at
31 August 2024
£
£
£
£
£
Current year
538,848
3,797,777
(3,540,552)
(89,274)
706,799
Movement in funds
Balance at
1 September 2022

Incoming resources

Resources expended

Transfers

Balance at
31 August 2023
£
£
£
£
£
Prior year
776,186
3,338,496
(3,451,995)
(123,839)
538,848

 

18
Unrestricted funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

At 1 September 2023
Incoming resources
Resources expended
Transfers
At 31 August 2024
£
£
£
£
£
Fixed Asset Fund
1,290,415
-
(93,109)
89,274
1,286,580
Inheritance Fund
30,688
-
-
-
30,688
Savings Fund
2,551
-
-
(2,551)
-
1,323,654
-
(93,109)
86,723
1,317,268
Previous year:
At 1 September 2022
Incoming resources
Resources expended
Transfers
At 31 August 2023
£
£
£
£
£
Fixed Asset Fund
1,251,815
-
(85,239)
123,839
1,290,415
Adler Fund
76,348
-
(76,348)
-
-
Inheritance Fund
29,688
1,000
-
-
30,688
Savings Fund
2,551
-
-
-
2,551
1,360,402
1,000
(161,587)
123,839
1,323,654
GARVALD WEST LINTON LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
18
Unrestricted funds
(Continued)
- 25 -

Fixed asset fund

This fund represents a fund set aside by the Directors to be equal to expenditure made less depreciation provided on fixed assets and less liabilities outstanding on their acquisition.

 

Adler Fund

This fund is a legacy received from the estate of Robin Adler which the directors have allocated to the future development of Garvald.

 

Inheritance Fund

This fund is legacies received from the estate of Eon Grindlay and Jean Horsburgh which the directors have allocated to the future development of Garvald.

 

Savings Fund

This fund is fundraising monies which the directors have allocated to future costs, the Directors agreed to transfer the funds to the 80th Birthday Funds.

19
Analysis of net assets between funds
Unrestricted funds
Designated funds
Restricted funds
Total
2024
2024
2024
2024
£
£
£
£
Fund balances at 31 August 2024 are represented by:
Tangible assets
-
1,384,925
-
1,384,925
Current assets/(liabilities)
706,799
(35,486)
38,867
710,180
Long term liabilities
-
(32,171)
-
(32,171)
706,799
1,317,268
38,867
2,062,934
Unrestricted funds
Designated funds
Restricted funds
Total
2023
2023
2023
2023
£
£
£
£
Fund balances at 31 August 2023 are represented by:
Tangible assets
-
1,466,854
-
1,466,854
Current assets/(liabilities)
538,848
(30,794)
7,530
515,584
Long term liabilities
-
(112,406)
-
(112,406)
538,848
1,323,654
7,530
1,870,032
GARVALD WEST LINTON LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 26 -
20
Operating lease commitments
Lessee

The operating leases payments represent rentals payable by the charity for it's properties.

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
33,000
33,000
Between two and five years
132,000
132,000
In over five years
291,500
291,500
456,500
456,500
Lessor

The charity has a lease on the property which extends up to June 2037, a rent holiday was agreed for 2024 with no annual charge recognised (2023 - £33,000).

21
Related party transactions
Transactions with related parties

During the year the charity there were no transactions with Trustees (2023 the charity purchased services under normal business terms from Craig Allardice a trustee until August 2023 totalling £4,507).

22
Analysis of changes in net funds
At 1 September 2023
Cash flows
At 31 August 2024
£
£
£
Cash at bank and in hand
609,327
151,113
760,440
Loans falling due within one year
(60,059)
(2,141)
(62,200)
Loans falling due after more than one year
(112,406)
80,235
(32,171)
436,862
229,207
666,069
GARVALD WEST LINTON LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 27 -
23
Cash generated from operations
2024
2023
£
£
Surplus/(deficit) for the year
192,902
(273,602)
Adjustments for:
Investment income recognised in statement of financial activities
(9,778)
(6,546)
Depreciation and impairment of tangible fixed assets
93,109
85,539
Movements in working capital:
Decrease/(increase) in debtors
69,636
(50,398)
(Decrease)/increase in creditors
(115,260)
101,823
Cash generated from/(absorbed by) operations
230,609
(143,184)
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