The Directors present their annual report and financial statements for the year ended 31 March 2025.
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 governing document, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
Although we have had some periods of uncertainty over the past 12 months, this has been another busy year for Respite Fife.
In last year’s annual report, we highlighted the fact that many of our families were finding great difficulty in getting their respite budgets reviewed and that, even when a reassessment had been carried out by social work, there seemed to be a lengthy delay before their new budget was released, during which time they were unable to book respite. Unfortunately, this situation has not improved, and for some families the situation has deteriorated to the extent that they have been unable to book respite for over six months. This has put undue pressure and strain on parents and carers who are already struggling with a reduction in day services. It has also meant that, especially during recent months, we have often operated with only one house open, leaving the other house with empty beds, even although there is a high demand for respite in Fife.
On a brighter note, Fife Council Social Work has now taken the decision to realign all the respite budgets to run alongside the financial year. It is early days, as this new process only began on 1st April ’25, but we are already seeing an influx of newly approved budgets, which will make planning our bookings much easier and relieve some of the pressure on our families.
Our purposes and activities
The charity was established in 1985 to promote and provide services for people with learning disabilities living in the community and to give help and support to their relatives and carers. It aims to provide support to enable people to achieve maximum independence and control over their lives.
The purposes of the charity are: -
To give users an extended and sustained experience of befriending by providing short breaks/ respite care for adults with mild to moderate learning disabilities.
To help users to develop a knowledge of local facilities, to promote their integration in the community and, very importantly, to develop independent living skills.
To increase the network of services available and, importantly, to further the development of the concept of maximising choice.
To give support to families and carers.
To provide care in ordinary domestic housing.
SERVICE PROVISION
Over this year, we have provided a respite service to 71 families, this was a total of 1189 overnights, 61 of which were self-funded. This is a slight increase since last year and is welcomed as a sign that overall things seem to be improving, albeit very slowly.
We also provided a small Care at Home service to 2 families, one of which is only provided during the winter months, as the family is away most of the summer.
STAFF DEVELOPMENT
Each year, the direct care team complete online refresher training in five core skills namely, Health and Safety, Safeguarding, Moving and Handling, Fire Awareness and Infection Prevention and Control. In addition, over the course of the past year, they have also completed online training on Trauma Informed Practice and Understanding Diabetes. Most of the direct care team also completed an online course to refresh their knowledge on food hygiene.
Last year, the team had commented that, although they understood the need for training to be online, they missed the interaction and team building experienced through face-to-face training. Earlier this year, after discussion at a staff meeting, the staff chose Understanding Autism as a team training day. Feedback from the team was very positive.
The senior team has also been busy updating their skills and knowledge. Lorraine, our Deputy
Care Manager, has attended several online courses including Infection Control and Human Rights, Gwyneth, our Office Manager, has attended various webinars on the Changes to Employment Law including flexible working and data protection.
Heather, our Service Manager, has attended a number of conferences which included
Supporting Mental Health at Work, Neurodivergence, Menopause in the Workplace and Bullying and Harassment in the Workplace. She also represented the organisation at the Shared Care Conference on Making a Difference which was held in Stirling.
It is also the responsibility of the senior team to update our policies and procedures, in line with current guidance, to ensure that the most accurate information is available at all times.
CARE INSPECTORATE
Although there has not been a formal inspection of our service this year, we are in regular contact with our care inspector, Sharon Mitchell-Ward, through the submission of our Annual Returns and the Care Home Census. We also completed a self-assessment of our respite service under the Quality Framework for Adult Care Homes. This was a lengthy and involved piece of work identifying our Core Assurances, our Safety Checks and Audits and included an Improvement plan to be carried out over a 2 year period.
Sharon has recently sent us a new publication for Adult Care Services – ‘Guidance on Records You Must Keep and Notifications you Must Make.’ This makes an interesting read and has provided us with the assurance that our record keeping meets the high standard that is expected from us.
MONITORING AND EVALUATION
Following our extensive consultation last year as part of our quality assurance process, this year we have been regularly consulting with carers and their families by email or telephone. Carers tell us they find it difficult to find the time to fill in questionnaires but are happy to talk to us over the telephone and that, if there is anything they want to query, they are confident that our telephone will be answered quickly and that any issues will be promptly resolved.
The process of changing service users’ personal support plans into an easy-to-read format called ‘This is Me’ is going well. However, with 71 families currently using our service, the completion of this task will take some time. Also, to change a support plan into a much more personalised ‘This is me’ effectively, takes a more in-depth knowledge of that person but, with respite budgets being reduced or not renewed, we do not see the person often enough to gather that information. This makes it a lengthy process. However, the results so far have been very positive, with service users taking ownership of their personal files, with many asking for photographs of activities they have undertaken during their stays to be included. Service users told us that the satisfaction form they are asked to complete at the end of their stay was too ‘wordy’ so this has been simplified and has met with their approval.
PLANS FOR THE FUTURE
We have always taken pride in the fact that our respite houses offer a relaxed, comfortable ‘home from home’ environment while complying with all the restrictions our registration as a care home implies. Externally however, the houses are in need of several upgrades. We are now in conversation with Fife Council, who are our landlords, to have some of this work undertaken during this next financial year.
After an unsettled few years since Covid-19 disrupted our lives, we hope that this next year will be more settled and productive. We will continue to look at new ways to increase our service provision and to support our families in their quest to have their respite budgets increased.
Finally, the Board and I would like to thank the staff team for their loyalty and commitment to Respite Fife and for their continued support and dedication.
The results for the year are set out on page 6 of the Accounts. The Directors consider the state of affairs of the organisation to be satisfactory, given the level of reserves at the year end.
The total income for the year was £348,365. After deducting expenditure of £353,194 the net deficit was £4,829.
The net assets of the Charity at 31 March 2025 were £230,533.
Reserves Policy and Going Concern
The Directors aim to maintain free reserves in unrestricted funds at a level which equates to a minimum of six months of the unrestricted charitable expenditure. The Directors consider that this level will provide sufficient funds to respond to applications for grants and ensure that there are sufficient funds available to cover support and governance costs.
Principal Funding Sources
The principal funding source is through the provision of Respite Services.
Investment Policy
The Charity holds any short-term surplus funds in Term deposit accounts with its bankers.
The Directors 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.
The Charity was originally formed in 1985, and opened its first respite house in 1987. On 1 April 2007, the organisation incorporated as a company limited by guarantee. The company was established under a Memorandum of Association which set the objects and powers of the charity and is governed under its Articles of Association. In the event of the company being wound up, members are required to contribute an amount not exceeding £1.
The Directors who served during the year and up to the date of signature of the financial statements were:
Director Induction and Training
Directors are appointed at the Annual General Meeting. All Directors are encouraged to attend structured induction and training programmes which are run by Fife Voluntary Action. In addition, Directors attend conferences and away days to assist in developing their roles and responsibilities.
Risk Management
The Board of Directors have considered the major risks to which the Charity is exposed and have reviewed those risks and established systems and procedures to manage those risks.
The directors, who also act as trustees for the charitable activities of Respite Fife, 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.
The Directors report was approved by the Board of Directors.
I report to the Directors on my examination of the financial statements of Respite Fife (the Charity) for the year ended 31 March 2025.
It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 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 the course of my examination, no matter has come to my attention
1. which gives me reasonable cause to believe that in any material respect the requirements:
to keep accounting records in accordance with Section 44(1)(a) of the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 4 of the Charities Accounts (Scotland) Regulations 2006, and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the Charities Accounts (Scotland) Regulations 2006
have not been met, or
2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
Investments
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Respite Fife is a charity limited by guarantee incorporated in Scotland. The registered office is 34 Hazel Avenue, Kirkcaldy, Fife, KY2 5EB..
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) 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 2019).
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.
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 the foreseeable future. Thus the Directors 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 Directors in furtherance of their charitable objectives.
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.
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided.
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
Cost of raising funds comprises the costs of the general fundraising activities of the charity, and their associated support costs.
Expenditure on charitable activities comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries.
Other expenditure (where relevant) comprises costs not falling into any other heading.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.
Where material, 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.
Allocation of Support and Governance Costs
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include office costs, payroll and governance costs and are incurred directly in support of expenditure on the objects of the charity. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The bases on which support costs have been allocated are on a direct basis or as a proportion of time spent.
Taxation
The charity meets the definition of a charitable company for UK corporation tax purposes and is therefore considered exempt.
Respite fees
Investments
Respite Services
Respite Services
Rent, rates and insurances
Power, light and heat
Property repairs and maintenance
Motor running expenses
Travelling expenses
Provisions, supplies and services
Service users social & entertainment
Subscriptions
Sundries
The basis of allocation is direct for all of the expenditure on charitable activities in the year.
Miscellaneous Expenses
Independent Examination Fee
The charity 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 (see Note 5) in the year. Refer to the table above for the basis for apportionment and the analysis of support and governance costs.
The average monthly number of employees during the year was:
No employees or directors received employee benefits in excess of £60,000 (2024: £nil).
The key management personnel of the charity comprise the Service Manager, Heather Cleave, the Deputy Care Manager, Lorraine McCormack and the Office Manager, Gwyneth Robertson. The total employee benefits of the key management personnel of the Charity were £94,615 (2024: £90,301).
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
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.
During the year the director, Mr R Thomson, invoiced the charity for IT services in the amount of £250 (2024: £Nil).