The trustees present their report and financial statements for the year ended 31 August 2024. The Trustees are also Directors of the Project for the purposes company law and those who served during the year up to the date of this report, are as set out at page 3.
The C.A.F.E. Project (Community Alcohol Free Environment) opened its doors on 26 October 1996 in response to a clear need to provide activities and care for young people and those with disability.
It is based in the centre of Arbroath in the former St Andrews Church. On two floors, it has 2 large halls, 2 kitchens, toilets, office space, TV’s and a computer room.
Initially rented, the premises were purchased in 2001 after a fund raising campaign.
The principal objectives are to work with Angus Council, statutory authorities and other voluntary organisations to promote the well being of those people of Arbroath and District and, in particular, those under the age of 25 years, to provide a safe alcohol and drug free venue for activities provided by the Project.
We run a youth drop-ins 4 evenings per week.
Activities include darts, arts and crafts, pool, bingo, table tennis, air hockey, game consoles and quizzes.
We run a drop-in for adults and young people with disabilities one evening per week. Activities include darts, arts and crafts, pool, bingo, table tennis, air hockey and game consoles
The Tea Time Club for primary 4 to 7’s runs 3 afternoons per week. Activities include darts, arts and crafts, pool, bingo, table tennis, air hockey, game consoles and quizzes.
We run a holiday club for primary 4 to 7’s 3 afternoons per week during school holidays. Activities include darts, arts and crafts, pool, bingo, table tennis, air hockey, game consoles and quizzes. We run a pensioners club 2 afternoons per week. Activities include, bingo, quizzes, pool, live music, teas and coffees and a good old chit chat.
The premises, both upstairs and downstairs, is also used by a variety of community groups and is a sought after location for birthday parties.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Use of volunteers
Trustees apart, we have 13 regular volunteers of whom 5 are young people and 1 full time worker and 4 part time workers.
There are numerous examples of young people continuing to attend the Project beyond school and receiving support and encouragement from staff and volunteers.
In all of our activities, our overriding aim is to keep young people safe and promote positive attitudes, confidence and self-esteem, healthy lifestyles and acceptable behaviour. It is also our aim to equip them with a variety of “soft” skills thereby increasing their chance of obtaining employment. To that end, in particular, young people are encouraged to play a full part in helping to run the project and contribute to its development.
During the year the charity has recorded a profit of £17,461.
The trustees are very aware that regular donations are required and are making huge efforts to secure funding.
As at 31 August 2024 there remained £143,394 of unrestricted reserves and £41,704 of restricted reserves.
The Project’s overriding policy is to meet its costs and hold a strategic reserve, the main part of which is invested in index-linked gilts and investment trusts yielding 3.4% p.a. in income. The principal items of expenditure were staff wages and pension costs, funded by grants from national and local trusts, public bodies, a Service Level Agreement with Angus Council, private donations and our own fundraising.
As ever, we are grateful to our donors and to our young people and volunteers for their fundraising activities.
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
In the last eight reports, we stated that in the uncertain economic times we had no plans to expand our services but that we were resolved to continue to provide and improve upon our present services. There is always, we believe, scope for innovation not least by adopting appropriate ideas from the young people themselves.
Of particular importance, in our view, is equipping young people for employment. We believe that can best be done by providing them with confidence and self assurance, self respect and respect for others, the ability to communicate clearly and to work with others. In addition, good manners are encouraged. Much can be achieved, in our experience, by young people assuming responsibility in helping to run the project.
In all that we do we will continue to promote the concepts we have developed for catering for marginalised members of society and, in particular, its young people and those with disability. We will continue to keep an eye on any fresh needs arising from further cutbacks in local government provision and see what we can do to help.
The C.A.FE. Project is a company limited by guarantee under a Memorandum and Articles of Association. The Board of Trustees is responsible for corporate governance, strategy, policies and financial affairs of the Project. Trustees are assumed as necessary and appointed at the Annual General Meeting. Day to day management is delegated to two project managers.
Staff and volunteers are subject to Enhanced Disclosure. Trustees, staff and volunteers are issued with copies of the projects and procedures, all of which are based on those of Angus Council. Induction of staff and volunteers is implemented by the project managers. Particular attention is given to child protection and health and safety issues. Regular support and supervision is provided by the Trustees. Policies and procedures are continually reviewed by trustees and staff. Reflecting the Project’s concern for child protection, it employs both male and female staff assisted by both male and female volunteers.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Trustees are assumed as necessary and appointed at the Annual General Meeting.
Should a person demonstrating relevant skills or experience present themselves to the board they may be considered for appointment as a trustee.
The trustees, who are also the directors of CAFE Project for the purpose of company law, are responsible for preparing the Trustees' 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 trustees 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 trustees 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 trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees' report was approved by the Board of Trustees.
I report on the financial statements of the charity for the year ended 31 August 2024, which are set out on pages 6 to 17.
The charity’s trustees, who are also the directors of CAFE Project for the purposes of company law, are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investments (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the 2006 Accounts Regulations does not apply. It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Act and to state whether particular matters have come to my attention.
My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeks explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the financial statements.
In connection with my examination, no matter has come to my attention:
to keep accounting records in accordance with section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;
to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
CAFE Project is a private company limited by guarantee incorporated in Scotland. The registered office is Whitehall House, 33 Yeaman Shore, Dundee, DD1 4BJ.
The financial statements have been prepared in accordance with the charity's Articles of Association, 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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
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.
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).
Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
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.
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including trade and other payables 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Grant income
Coffee bar income
Teatime Club
Monday Night Club
Pool table income
Property rental
Air Hockey income
Other income from fixed asset investments
£3,785 (2023- £2,734) of the above income for 2024 was attributable to unrestricted funds and £0 (2023-£0) related to restricted funds
Fundraising
Activities and food expenses
Heat, light and power
Insurance
Repairs and maintenance
Telephone
Subscriptions
Sundry expenses
The average monthly number of employees during the year was:
2 (2023 - 2) of the above employees participated in the Defined Contribution Pension Schemes.
Contributions to the employee pension schemes for the year totalled £6,285 (2023 - £5,695).
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
Investments are stated at market value which is the value per the stock exchange. The historical cost of the investments is £78,657 (2023 - £74,973).
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The 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.
The specific purposes for which the funds are to be applied are as follows:
Property Grant - There have been various grants received for the upgrade of the property. These grants are being reduced in line with the depreciation policy.
Roof work donations - Donations were received to fund roof repairs, any excess funds will be carried forward to be used on future roof repairs.
Michael Cadman - Monies received to set up a music project.
Dance wall donations - These were received to fund a potential dance which is still under discussion as to whether this will go ahead.
Pensioners Club - To provide drop in sessions for the elderly.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
There were no disclosable related party transactions during the year (2023 - none).