The Trustees present their annual report and financial statements for the year ended 30 September 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 constitution, 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).
The objectives for which Front Lounge is established are:
The prevention or relief of poverty anywhere in the world by providing or assisting individuals and communities through the provision of education, training, healthcare projects and all the necessary support designed to enable individuals to generate a sustainable income and be self-sufficient;
To advance the education of children, young people, and adults through the provision of training in skills that will assist in obtaining paid employment in the creative and other industries.
Front Lounge’s mantra, ‘Life is Big. Be all you can be,’ implores all who cross our path to strive to be bigger, better, brighter. The charity continues to:
Empower people to be more engaged, motivated and resilient
Help people gain better access to services
Help people attain more through education
Work to improve the life chances of the most marginalised in society
Overview
Front Lounge’s mantra, ‘Life is Big. Be all you can be,’ implores all who cross our path to strive to be bigger, better, brighter. The charity continues to:
Empower people to be more engaged, motivated and resilient
Help people gain better access to services
Help people attain more through education
Work to improve the life chances of the most marginalised in society
KEY MILESTONES
October 2023
In person Assessor Training led by Polaris Learning + Georgia McLaren for Amy Deans, Cerrys Duke, Christie Wanless + Courtney Keddie which will increase the capacity of Front Lounge to deliver more Kindred Clothing cohorts of learners.
October – December 2023
Adventures of the Little People afterschool sessions attended by 12 children and supported by Ellie Fraser, Lexie McMillan + Sasha-Kate Burns (volunteers) Ashley Dye (drama specialist), Grant Keelan (Filmmaker), Amy Deans + Chika Inatimi (staff). These sessions ran weekly until 17 December 2023, and climaxed at A Very Magical Christmas event at Coldside Parish Church on 19 December 2023 which also featured a performance by Let’s Create (a group of teenagers engaged via Kindred Clothing), Jamie the Jester plus music by Layla Brown & Edenbank.
December 2023
The very first production order for x10 Isolated Heroes units before Christmas. This order together with orders from Jolene Guthrie (Jo-AMI) and Orkney based Kirsteen Stewart in 2024 have helped test the viability of a garment production facility. A number of Kindred Clothing graduates have been involved in production at different times across the year.
January – February 2024
Kindred Clothing cohort that ran for the first time three evenings a week plus Saturday. This cohort was used a a proving ground for the assessors in training.
February – March 2024
Kindred Clothing cohort featuring learners with an average age of 37, the first of its kind Front Lounge has ever facilitated. This cohort was facilitated by Amy Deans and assessed by Christie Wanless.
March 2024
EVOLUTION Runway – Front Lounge’s first ever runway event – hosted by The Vine featuring the work of Christie Wanless and learners from the Jan - Feb & Feb - Mar cohorts. Pictures by PPG Photography + Everlong Photography.
March – May 2024
Second block of Adventure of the Little People weekly sessions, this time focussed on space themed art workshops, and led by with Uppertunity who also provided food each week. This climaxed in an exhibition event on 26 May 2024, with 100+ guests attending the Adventures of the Little People Travels Through the Universe exhibition at Scrapantics in Wellgate Centre, Dundee.
May – June 2024
Kindred Clothing Cohort featuring Candi Murray, Nico Mcleish, Nicole McGregor, Rhianne Grieve + Sally Johnston. This cohort was facilitated by Chika Inatimi and assessed by Amy Deans.
June 2024
Front Lounge’s second SQA External verification visit was attended by The Kindred Clothing Learning Coordinator, internal verifier Georgia McLaren, 3 of 4 trainee assessors, together with the 2 SQA external verifiers, and a couple of staff from Polaris Learning (our parent Learning Centre). The visit scrutinised the Kindred Clothing learning paper trail from recruitment right through to resulting, and the standardisation process. To properly contextualise the impact of the award the External Verifiers had conversations with a handful of learners. SQA liked what they saw and heard, and highlighted a couple of areas of good practice and expressed ‘high confidence’ in the Kindred Clothing Award and in Front Lounge’s ability to be responsive to the needs of learners. Serendipitously, the visit coincided with the May-Jun cohort presentations, the final component of the Kindred Clothing Award. Both Polaris Learning and SQA staff were delighted to see Kindred Clothing in action, which further consolidated their understanding of the qualification and the real impact it is having in people’s lives.
July 2024
Inaugural Kindred Clothing Summer Camp featuring 5 learners including one based in Orkney who joined the sessions through Zoom. This cohort was facilitated by Christie Wanless and assessed by Courtney Keddie.
August 2024
Adventures of the Little People Summer Camp with Vivienne Low + Amy Deans which climaxed in a wonderful puppet show attended by a small audience off family and friends. Photography by Siobhan Diamond.
September 2024
20 learners graduated the Kindred Clothing course on Graduation Day (7 Sep 2024) which took place at Discovery Point, Dundee. The event showcased a runway that featured Kindred Clothing graduates alongside some established Scottish designers, moving testimonials by Rhianne Grieve and Samantha Hutchison, a commencement speech by Orkney based designer Kirsteen Stewart, plus music from Loadsaweeminsingin’ and Edenbank. The ‘Tailor Trade Award’ presented by Stephen Brand, Deacon of The Taller Trade of The Nine Incorporated Trades of Dundee was awarded to Nymeria Drayak, hailed as the year’s most outstanding Kindred Clothing learner. She received a certificate and £350. Pictures by David Izatt and PPG Photography.
Other notable moments include World Mental Health Day (10 Oct 2023) with resilience stories published online and in the local press; iGNiTE REMAKE (18 – 20 Oct 2023) Georgia McLaren and Amy Deans worked with 7 participants making pyjamas from scratch; Scottish Fashion Festival 2023 Gala Opening Night by Scotland Re:Design (17 Nov 2023) which Amy Deans attended with 4 participants in tow; Dundee Changemakers Hub’s Coldside Soup at Dudhope Castle (25 Apr 2024) where Amy Deans pitched and won funding for Adventures of the Little People; Molly’s Evolution (3 May – 7 Jun 2024) to enable our graduands prepare for the Graduation Day runway; iGNiTE DUNDEE with 18 ‘trainee volunteer’ participants (14 – 15 Jun 2024); and TikTok x iGNiTE (11 Jul 2024), a fun summer project with 13 participants. Furthermore, as part of the Ufi VocTech Trust’s Enrichment Programme, David Hinton of Unity Ventures facilitated a number of conversations that involved a cross section of Front Lounge to explore different options for growth. At the forefront of this conversation was if and how we should set up a garment production facility in Dundee, and this conversation will be a priority in the coming year.
Going concern
After making appropriate enquiries, the Trustees have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.
Ensuring that Front Lounge continues to be a going concern in 2024-2025 funding from the following will be received in the coming year: Angus Hunter Foundation – £10,000; Community Mental Health and Wellbeing Fund – Dundee City Council – £40,000; Garfield Weston Foundation – £15,000; Hugh Fraser Foundation – £5,000; The Champ Fund administered by Foundation Scotland – £5,000; The George and Grace Thomson Trust (Parent Programme) administered by Foundation Scotland – £10,000; The Roberston Trust – £25,000; UK Shared Prosperity Multiply Youth Work Fund administered by Dundee City Council – £14,500; Young Start (National Lottery Community Fund) – £50,000.
Front Lounge currently has free reserves of £1,591, and a fundraising plan to ensure the necessary resources are in place to ensure that we continue to implement the priorities listed above.
Reserves policy
Front Lounge is a charity based in Dundee which works creatively to support and improve the life chances of vulnerable young people and young families. Front Lounge is mainly funded through grants to run particular projects. The board recognises this can lead to challenges covering the ongoing running costs of the charity leading to unrestricted deficits.
The charity's current reserves policy is to maintain unrestricted funds, which are the free reserves of the charity, at a level which equates to approximately 3 months unrestricted expenditure. The charity has unrestricted funds which meet this reserves policy. This ensures there will be sufficient funds to cover basic operating costs. Unrestricted funds are gained from various direct fundraising activities, from fees for work completed for third party organisations, and from full cost recovery. As the organisation grows so a larger reserve will be necessary to reflect increased turnover and give Front Lounge improved resilience in the face of the unexpected. This will be put into effect in the coming year.
The board will review the reserves policy annually. At 30 September 2024 the charity holds unrestricted reserves amounting to £1,591 (2023 - £12,044) and restricted reserves amounting to £7,553 (2023 - £13,185).
PRIORITIES
Our priorities for the coming year are as follows:
Education: Becoming an accredited Learning Centre, activity driven by the ongoing rollout of Kindred Clothing plus the addition of other qualifications to broaden our educational offering.
Social Enterprise: Development of income generating possibilities in partnership with others to reduce Front Lounge’s reliance on funding income.
Community Development: focusing on mental health, and providing additional support to our users through one to one and group work, and continued development and implementation of social justice strategies, through highlighting best practice, making use of the current research base, and involving service users in the design and delivery of the programmes and services Front Lounge provides.
Governing document
Front Lounge Limited is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association.
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:
Methods of appointment or election of Trustees
As set out in the Articles of Association, each of the first members of the Management Committee (the founder members) shall be entitled to nominate further Management Committee members. The committee members are elected at each Annual General Meeting and should be eligible for re-election at the following Annual General Meeting.
Day-to-day management of the charity is undertaken by Bomo Inatimi (project leader).
Financial risk management
The Trustees have assessed the major risks to which the Company is exposed, in particular those related to the operations and finances of the Company, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
The Trustees' report was approved by the Board of Trustees.
I report on the financial statements of the Charity for the year ended 30 September 2024, which are set out on pages 7 to 21.
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 Charities Accounts (Scotland) Regulations 2006. 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 seeking 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.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Investments
The notes on pages 10 to 21 form part of these financial statements.
Front Lounge Limited (SC223108) 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 constitution, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The Charity is a Public Benefit Entity as defined by FRS 102.
The Charity has taken advantage of the provisions in the SORP for charities 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. The principal accounting policies adopted are set out below.
At the time of approving financial statements, the Trustees have reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Although reserves are low, there is sufficient funding in place for the following year. 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.
Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
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.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the 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.
Grants
Legal fees
Governance costs includes payments to the independent examiner of £4,225 (2023 - £3,803) for independent examination of the Charity's financial statements.
During the year ended 30 September 2024, no Trustee expenses were incurred (2023 - £NIL).
The average monthly number of employees during the year was:
The remuneration of key management personnel was as follows:
The charity's project leader is considered to be key management personnel and was contracted to oversee various projects.
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The charity has a loan outstanding to a project leader of £11,196. This will be repaid when the charity has more secure cashflow.
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 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.
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.
Purpose of Restricted Funds
Hunter Foundation 2: This was awarded for capital purchases in 2020. The balance is being depreciated over the useful lives of the assets.
Robertson Trust: This was awarded to contribute towards the contract costs of the project leader/ learning manager.
Hope Hub 2: This was awarded from the 'ShiftThePower' fund to fund the cost of a vlogging campaign. The balance is being depreciated over the useful lives of the assets.
Kickstart: This was awarded to fund salary costs for multiple short-term work placements.
Communities Mental Health and Wellbeing Fund: The project will provide focused activity for households with mental health vulnerabilities and will use the arts to explore concepts of ‘home’. It will share hope in a time of uncertainty, virtually and in-person, with additional participant directed support as required.
Kindred Clothing/UFI Voctech Trust: Developing of the Learning Management System (LMS) desktop and mobile and general running costs of Kindred Clothing project.
Dundee City Council : to fund salary costs
Perth & Kinross Council: to fund salary costs
Awards for All - to cover costs of running the Adventures of Little People project
AOPL Dundee Bairns- to cover costs of food expenses.
Scottish Government: to fund costs of Child Poverty Scrutiny.
The charity received a loan during the year from Bomo Inatimi (project leader) of £11,196 which is to be repaid when the charity has more secure cashflow year (2023 - none).