REGISTERED COMPANY NUMBER: SC193638 (Scotland)

REGISTERED CHARITY NUMBER: SC028984

Report of the Trustees and

Audited Financial Statements

for the Year Ended 31 March 2025

for

Neighbourhood Networks

Page

Report of the Trustees

1

Report of the Independent Auditors

9

Statement of Financial Activities

13

Balance Sheet

14

Cash Flow Statement

15

Notes to the Cash Flow Statement

16

Notes to the Financial Statements

17

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2025. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objects for which the charity are established are to promote the welfare of vulnerable adults and advance the education of people with disabilities. These are achieved by facilitation of local networks of mutual support amongst disadvantaged or marginalised adults in various parts of Scotland.

The organisation's Vision, Mission and Value Statements are:

Vision: "Our network Members are at the heart of their communities, sharing their skills and talents and following their dreams - together anything is possible."

Mission: "Through local networks of mutual support, we will work with people in their neighbourhoods to deliver the support they require to live independently in their own homes, and to contribute to their communities."

Value Statements:

- Everyone is different and we should all be respected and encouraged to be all we can be.

- Everyone should be encouraged to strive towards their dreams and goals.

- Everyone should have the opportunity, encouragement, support and training to be actively involved in the development of the organisation.

- There should be a healthy balance between responsibility and having time to enjoy life.

- Sharing skills and gifts makes us stronger and more confident.

- Giving and receiving support is important to help us grow.

- We can all be involved in making where we live, work and socialise a better place.

- We feel safer when we have positive, equal relationships with others and this is important to feeling we belong.

Neighbourhood Network's approach is based on a set of principles very much at the heart of the agenda for change recommended by the Christie Commission on the future delivery of Scottish public services including building services around people, building services around communities and adopting preventative approaches.

Building Services Around People

This key objective aims to empower network members by involving them in the design and delivery of the services they use, and in the governance of the organisation. This collaborative or "co-productive" approach is efficient and effective as it:

- focuses on what people actually need and want,

- pursues outcomes associated with active citizenship,

- empowers individuals, communities and services to work together to find innovative solutions, and

- builds personal and community capacity, resilience and autonomy.

Objectives and aims continued

Building Services Around Communities

Within this key objective, equal emphasis is placed on the complementary objective of building networks around communities where people come together through a common set of needs whether as communities of place or communities of interest.

Place based communities might be a street, neighbourhood, housing estate or village - any geographically defined area with which people identify. Interest based communities occur when people come together through a shared need, interest, experience or concern. These communities offer people natural systems of mutual support, information exchange and self-advocacy.

Adopting Preventative Approaches

Neighbourhood Networks advocates a preventative approach to service delivery in managing and reducing the demand on public services. While various life-long conditions affecting people who use public services cannot be prevented, it is possible to prevent the typical crises that often arise in the lives of people living with such conditions, which are costly in both human and financial terms. The charity adopts a type of light touch, low cost, stitch in time approach, emphasising mutual support and early warnings which allow for most crises to be averted.

Public benefit

The charity meets the definition of a public benefit entity under FRS 102.

STRATEGIC REPORT

Achievements and performance

Charitable activities

Organisation and Network Achievements

The organisation, through the model of peer support networks, supports people with a range of vulnerabilities including learning disabilities, mental health issues and young people in transition. Through membership, individuals, and groups the organisation has been able to evidence continued progression in 8 outcome areas which include:

1. Health and Wellbeing

2. Confidence and self-esteem

3. Money Management

4. Employment and Volunteering

5. Life Skills

6. Friendships and Relationships

7. Independent Travel

8. Community Connections

Neighbourhood Networks continues to work with 30 Networks with the capacity to support over 300+ people a year. In the period 2024 to 2025, the numbers of Independent Networks also grew. These networks now operate across Central Scotland, and support adults living in North Lanarkshire (2), East Lothian (1), Midlothian (1) and Stirling, and Falkirk (1). The organisation has also supported the development of 5 Independent Networks across 5 regional areas.

The organisation has had a busy year. We achieved our plans for the year against a backdrop of a complicated social care landscape. The cost of delivering our services continue to rise, but the majority of our income comes from local authorities' budgets. These budgets have been under sustained pressure over recent years, while demand for services like ours continue to rise. Notwithstanding these significant pressures, Neighbourhood Networks has continued to deliver high quality services, and this is evidenced by an external evaluation undertaken by Social Value Lab on behalf of the organisation. This evaluation captured robust evidence to demonstrate the very high impact of the model and service provided and no operational recommendations were made at the end of this work. The report concluded that Neighbourhood Networks should continue to focus on evidencing the impact of the work that is carried out through data gathering. This is an area of work that will be focused on in the year 2025 to 2026.

During the year, Neighbourhood Networks moved to a new Glasgow city centre location. The office move created savings, which has been a material factor in enabling us to continue to deliver against challenging financial conditions. We are also actively engaged in discussions with local authorities on what services we could deliver for a reduced fee, as well as the removal and reinstatement of services.

Our key organisational achievements include:

1. The development of a new Member Involvement Strategy for the organisation.

2. The development of the Neighbourhood Networks Advisory Group (the NNAG). This group of members share their experiences and views with the Board of Trustees to enhance understanding and decision making.

3. The successful engagement with Glasgow School of Design Masters students to develop tools to more effectively engage with the lived experience of members.

4. The creation of a health promotion strategy.

5. The development of tools to engage with members about pathways on from formal membership including independent networks. This work was influenced by a successful placement of a community learning and development student with the University of Glasgow.

6. The development of Governance structures leading to the change to Articles of Association. The organisation also successfully recruitment of 2 new trustees and gained access to training opportunities for all trustees through Inspiring Scotland and Membership of Trustee Connect.

7. Successful tender activity in North Lanarkshire securing work in the area for a three-year period as well a success with new frameworks in South and East Ayrshire.

8. Securing some small grants to fund member activities including the member conference, kitchen skills training and monies for activities for young people in transition.

9. A renewed focus on staff training with staff induction being enhanced in the last year and all operational staff taking part in Trauma Informed Practice.

10. The new organisational website being launched, developed through the experience of members to maximize accessibility.

11. Formal links being made with the Assembly whose work is to engage people with learning difficulties with politics in Scotland. A roadshow took place across the regions with a focus on supporting people to understand their rights as citizens.

12. The development of Gender Based Violence Awareness Training delivered internally following some project work with SCLD and the Scottish Government.

13. The Staff Council reformed and focused on the distribution and collation of a staff engagement survey. The result of this survey, which was overwhelmingly positive, formed an action plan leading to the following outcomes (not exclusively) :

- Sleep Action Training

- A menopause café

- A change to staff terms and benefits

- Carers accreditation

- Cross networking opportunities

- Focused frontline training

Financial review

Financial position

The financial statements show the overall position of the charity as at 31 March 2025, its incoming resources and the application of these resources for the year then ended.

Income received during the year totalled £1,369,082 (2024 - £1,400,758) and expenditure totalled £1,350,352 (2024 - £1,346,514). A surplus in funds of £18,730 was generated against a surplus of £54,244 in 2024.

Principal funding sources

The principal funding sources for the charity are the respective local authorities by way of contract income for the provision of the support networks in the respective area. Grant income is also applied for to support ongoing projects within the charity.

Reserves policy

It is the policy of the Trustees to maintain reserves at a level which equates to five months expenditure. This provides sufficient funds to cover costs and to respond to unforeseen financial demands which may arise from time to time. The present level of unrestricted reserves total £624,748 (2024 - £608,287) of which £620,626 (2024 - £598,051) is available for general purposes and £4,122 (2024 - £10,236) represents the net book value of fixed assets and is only distributable on the sale of fixed assets. The present level of restricted reserves is £7,713 (2024 - £5,444) of which £7,713 (2024 - £5,444) will be distributable when attaching conditions have been met.

Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. There are sufficient cash resources and reserves at the year end. They have accessed all available support which has been available at local and national levels. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

Principal risks and uncertainties

Neighbourhood Networks has a process for managing and monitoring risk. An organisational risk register is maintained and monitored quarterly by both the Senior Management Team and the Finance and Risk Management (FARM) committee, with a focus on the most important risks facing the organisation. The sub-committee has provided updates to the Board on its progress during the year. The FARM committee also reviews the position with Local Authority Contracts and Funding on a quarterly basis and provides regular updates to the full Board.

A summary of the principal risks and uncertainties facing Neighbourhood Networks is set out below:

The organisation relies on funding from local authorities to deliver its service

Local authority budgets are subject to regular review and there is a risk that the organisation loses funding as a result of these reviews. This could mean we need to reduce our service provision, including closing networks.

Further, local authorities regularly review their approach to funding services like Neighbourhood Networks. Sometimes, funding is only be provided on a short-term basis, meaning that services may be disrupted or wound-up quickly.

The organisation tries to manage these funding related risks by focussing on providing a cost-effective, high quality service. We proactively seek feedback from local authorities in order to assess and continually improve our service provision. We also regularly explore alternative funding sources, such as grants. We maintain a prudent level of reserves, including a designated fund to enable us to wind-down networks gradually in the event that funding is lost at short notice. This helps us provide as much support to staff and members as possible in the unfortunate event that we need to close a network.

Neighbourhood Networks have become a member of CCPS (Coalition of Care and Support Providers in Scotland) to keep abreast of developments in the social care market including the proposed development of the National Care Service.

Neighbourhood Networks requires appropriately qualified staff to deliver its service

There is a risk that service delivery is affected if we are unable to attract and retain the right people. We manage this risk by ensuring all colleagues are paid at least the national living wage, by asking colleagues for feedback on what we do well and where we can improve and by focussing on succession plans for key roles.

Future plans

Our aims in 2025-26 are to develop and deliver on the objectives from a new strategic plan, which takes account of the rapidly evolving external environment. Our objectives will focus on measuring and improving the outcomes members achieve through network membership. There will also be focus on supporting pathways for members to move on from formal network membership and further develop organisational sustainability. Work on this will include:

- the progression of a Health Improvement Plan across the membership

- The introduction of ninth outcome area focussed on digital skills

- Further development of Independent Networks

- Further Development of the Outcome Focused Monitoring System. This is to include more data capture to evidence the effectiveness of the service provided.

- Finance Policy and Procedures reviewed and revised to streamline functions and achieve more efficiencies in staff time.

- The continued Improvement of Governance Arrangements by the further development of the NNAG.

-The completion of a fresh financial evaluation to look at the impact on the public purse through investment in network approaches.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

Neighbourhood Networks is a company limited by guarantee, incorporated in Scotland on 22 February 1999, company number SC193638 and registered as a Scottish Charity number SC028984 on 22 February 1999. The charity was formed under a Memorandum of Association which established its objects and powers and is governed under its Articles of Association.

Recruitment and appointment of new trustees

Neighbourhood Networks undertook an internal review of the Governance Structure in 2024 to 2025. This led to a change in the number of trustees serving on the Board and to the Articles of Association. This change was concerned with improving the experience of trustee's engagement at board meetings and in recognition of the creation of the Neighbourhood Networks Advisory Board (NNAG).

The Board of Trustees (also known as Directors for the purpose of the Companies Act) is now made up of no more than 10 trustees; and there are two categories of membership: members and non-members. Non-member trustees are externally recruited, and member trustees are recruited from the Networks.

Both categories join the Board following a selection and recommendation process involving existing trustees, with full approval being sought at Board Meeting for people to join. This is to bring an identified skill and experience set to the Board.

Organisational structure

The management of the charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association. A Finance and Risk Management (FARM) sub-committee is formed from the Board and consists of the Chair, Deputy Chair and three Trustees, supported by the CEO and Finance Manager. It has the provision for the co-option of additional trustees. The role of the FARM Sub-committee is to assist the Board in the following:

- Review the budgets, accounts, financial statements of the organisation; consider pay awards; and give guidance on other financial matters where necessary.

- Consider the financial implications of strategic plans and key assumptions included in management's operational plan and annual budget.

- Understand the accounting procedures and key internal controls to provide oversight on financial integrity.

- Ensure that the financial statements are audited, as required, and that the accepted recommendations of the auditors are implemented.

- Formally present the financial statements at the AGM, drawing attention to important points.

- Oversight of investment activity and ensure its consistency with policies, aims, objectives and legal responsibilities.

The day-to-day responsibility for the provision of services rests with a Chief Executive Officer (CEO), Senior Management Team and Central Team. The Senior Management Team consists of the CEO, Finance Manager, two Depute Executive Officers, one Operations Managers and a Development Manager. The Central Team consists of all Network Managers, a Technical Manager, a Digital Co-Ordinator, Administrative Assistant and Finance Assistant. Network Managers line manage Community Living Workers who live in network areas providing support to members.

Key management remuneration

The key management of the charity are entitled to remuneration under article 3 of the Memorandum and Articles of Association. Article 10 provides that no other Director or Trustee will be a paid employee of the charity.

Wider network

The charity is registered as a housing support service and support service with the Care Inspectorate. It is also a member of CCPS, a coalition of care and support providers in Scotland.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

SC193638 (Scotland)

Registered Charity number

SC028984

Registered office

Suite 421A

The Pentagon Centre

36-38 Washington Street

Glasgow

G3 8AZ

Trustees

Ms P J Hunter (resigned 21.8.24)

Mr N F Park (resigned 2.9.24)

S Haldane (resigned 5.12.24)

Ms L McKay

P McGinley

W Millar (resigned 24.1.25)

Ms L Crawford

K Mohammed

Ms K Watson

S Smart

Mrs S MacGregor-Cross (resigned 28.3.25)

Mrs A Hayden (appointed 6.6.24)

Miss S Ahmed (appointed 23.1.25)

Mrs A Williams (appointed 23.1.25) (resigned 9.5.25)

Company Secretary

Mrs H Calvo

Auditors

Gillespie & Anderson

Statutory Auditors

Chartered Accountants

147 Bath Street

Glasgow

G2 4SN

Bankers

The Royal Bank of Scotland plc

1 Moncrieff Street

Paisley

PA3 2AW

Chief Executive Officer

H Calvo

Deputy Executive Officer

A McKill

L Muir

TRUSTEES' RESPONSIBILITY STATEMENT

The trustees (who are also the directors of Neighbourhood Networks for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

-	select suitable accounting policies and then apply them consistently;

-	observe the methods and principles in the Charity SORP;

-	make judgements and estimates that are reasonable and prudent;

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

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

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

-	there is no relevant audit information of which the charitable company's auditors are unaware; and

-	the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

Auditors

The Auditors, Gillespie & Anderson, Chartered Accountants, Statutory Auditors, have expressed a willingness to continue in office.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 8 September 2025 and signed on the board's behalf by:

P McGinley - Trustee

Opinion

We have audited the financial statements of Neighbourhood Networks (the 'charitable company') for the year ended 31 March 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In our opinion the financial statements:

-	give a true and fair view of the state of the charitable company's affairs as at 31 March 2025 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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 the provisions available for small entities, in the circumstances set out in note 20 to the financial statements, 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 trustees' 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 charitable company'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 trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Trustees has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

-	adequate and proper accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of trustees' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement, the trustees 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 trustees 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 trustees are responsible for assessing the charitable company'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 trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

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 a Report of the Independent Auditors 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:

Our approach and assessment were as follows:

The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.

Enquire of management and review supporting documentation concerning the charity's policies and procedures relating to:

- identify, evaluate and comply with laws and regulations and their awareness of any instances of non-compliance;

- detect and respond to the risks of irregularities, fraud and their knowledge of any actual, suspected or alleged fraud;

- internal controls established to mitigate risks related to, unusual items, fraud or non-compliance with laws and regulations.

Obtain an understanding of the legal and regulatory framework that the charity operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the charity. The key laws and regulations we considered in this context included the Charities and Trustee Investment (Scotland) Act 2005, Charities Accounts (Scotland) Regulations 2006, Companies Act 2006 and the applicable Statement of Recommended Practice (SORP) together with health and safety regulations, employment legislation and data protection legislation.

Discuss among the engagement team how and where irregularities might occur in the financial statements and potential indicators of fraud. Identify potential audit risks in relation to income recognition, authorisation of expenses and possible management override of controls.

Communicate relevant identified laws and regulations and potential irregularity risks to all engagement team members and remain alert to any indications of unusual items, fraud or non-compliance with laws and regulations throughout the audit.

Review all Minutes of Meetings of those charged with governance, Reports and correspondence with HMRC and legal advisers.

Perform audit testing which covers the audit assumptions of: existence, completeness, rights and obligations, accuracy and valuation in respect of income recognition and expenditure incurred.

Evaluate the overall presentation, structure and content of the financial statements, including disclosures, by performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to an irregularity or fraud. Agree financial statement disclosures to underlying documents.

Assess whether the financial statements represent the underlying transactions and events in a manner that achieves compliance with relevant laws and regulations.

To address the risk of fraud through management override of controls and management bias, we: assess the rationale behind significant or unusual transactions identified through audit testing and assess where management judgement used in determining accounting estimates were indicative of potential bias.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence.

Material misstatements that arise due to fraud can be harder to detect that those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company'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 charitable company's members and the trustees those matters we are required to state to them in an auditors' 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Alastair Stewart BA (Hons) CA (Senior Statutory Auditor)

for and on behalf of Gillespie & Anderson

Statutory Auditors

Chartered Accountants

Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006

147 Bath Street

Glasgow

G2 4SN

8 September 2025

2025

2024

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

1,246,805

620

1,247,425

1,287,008

Charitable activities

5

Main charitable activity

500

106,446

106,946

103,841

Other trading activities

3

9,000

-

9,000

6,000

Investment income

4

5,711

-

5,711

3,909

Total

1,262,016

107,066

1,369,082

1,400,758

EXPENDITURE ON

Charitable activities

6

Main charitable activity

1,245,555

104,797

1,350,352

1,346,514

NET INCOME

16,461

2,269

18,730

54,244

RECONCILIATION OF FUNDS

Total funds brought forward

608,287

5,444

613,731

559,487

TOTAL FUNDS CARRIED FORWARD

624,748

7,713

632,461

613,731

2025

2024

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

13

4,122

-

4,122

10,236

CURRENT ASSETS

Debtors

14

32,157

-

32,157

150,995

Cash at bank and in hand

655,560

7,713

663,273

499,071

687,717

7,713

695,430

650,066

CREDITORS

Amounts falling due within one year

15

(67,091

)

-

(67,091

)

(46,571

)

NET CURRENT ASSETS

620,626

7,713

628,339

603,495

TOTAL ASSETS LESS CURRENT LIABILITIES

624,748

7,713

632,461

613,731

NET ASSETS

624,748

7,713

632,461

613,731

FUNDS

17

Unrestricted funds

624,748

608,287

Restricted funds

7,713

5,444

TOTAL FUNDS

632,461

613,731

The financial statements were approved by the Board of Trustees and authorised for issue on 8 September 2025 and were signed on its behalf by:

P McGinley - Trustee

Cash flows from operating activities

Cash generated from operations

1

164,645

(91,417

)

Net cash provided by/(used in) operating activities

164,645

(91,417

)

Cash flows from investing activities

Purchase of tangible fixed assets

(6,154

)

-

Interest received

5,711

3,909

Net cash (used in)/provided by investing activities

(443

)

3,909

Change in cash and cash equivalents in the reporting period

164,202

(87,508

)

Cash and cash equivalents at the beginning of the reporting period

499,071

586,579

Cash and cash equivalents at the end of the reporting period

663,273

499,071

1.	RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

2025

2024

£

£

Net income for the reporting period (as per the Statement of Financial Activities)

18,730

54,244

Adjustments for:

Depreciation charges

12,268

16,016

Interest received

(5,711

)

(3,909

)

Decrease/(increase) in debtors

118,838

(128,337

)

Increase/(decrease) in creditors

20,520

(29,431

)

Net cash provided by/(used in) operations

164,645

(91,417

)

2.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank and in hand

499,071

164,202

663,273

499,071

164,202

663,273

Total

499,071

164,202

663,273

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. There are sufficient cash resources and reserves at the year end. They have accessed all available support which has been available at local and national levels. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

Presentation currency

The financial statements are presented in sterling which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

Critical accounting judgements and key sources of estimation uncertainty

The Trustees have made judgements, estimates and assumptions that affect the amounts reported within the financial statements during the year. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. The Trustees estimates, assumptions and judgements that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the financial statements are addressed and detail is provided in the associated notes.

Income

All income is recognised when the charity is entitled to the income, it is probable that the income will be received and the amount can be measured reliably.

Donations and legacies consists of donations, grants and legacies. Donations are recognised when the charity is entitled to the income, receipt of the income is probable and the amount can be measured reliably. Income from grants, not subject to performance related conditions, is recognised when the charity has entitlement to the funds, it is probable that the income will be received, the amount can be measured reliability and it is not deferred. Income from government grants is recognised when received as the accrual model is not permitted by the Statement of Recommended Practice. Legacy income is recognised when it is probable that it will be received.

Charitable activities income is received for the services offered as part of the charitable activities of the charity. Income from performance related grants is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliability.

Other trading activities income is received from fundraising events held.

Investment income consists of bank interest. It is included when receipt is probable and the amount can be measured reliably.

Other income relates to items not included within the above categories.

Expenditure

Expenditure has been classified under the headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of the resources.

Expenditure is recognised on an accrual basis when a legal liability is incurred, payment of the liability is probable and the amount can be measured reliably. The amount includes any VAT which cannot be fully recovered. VAT is reported as part of the expenditure to which it relates.

Raising funds includes all expenditure incurred by the charity to raise funds for its charitable purposes and includes costs of all fundraising activities, events and non-charitable trading.

Charitable activities comprise all resources expended undertaking work to meet the charity's charitable objectives. Such costs include the direct costs of charitable activities approved by the charity and all support costs relating to these activities. Governance costs include direct resources expended in the general running of the charity and are primarily associated with constitutional and statutory requirements. These costs are allocated entirely to charitable activities.

Allocation and apportionment of costs

Support costs are allocated wholly to charitable activities. Whilst the Trustees recognise that a small part of some items of expenditure included in support costs do relate to indirect governance costs, they are of the opinion that the time and costs involved in performing such an analysis outweigh the potential benefits arising from any such work.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property

-

10% on cost

Fixtures and fittings

-

25% on cost

Computer equipment

-

33% on cost

All tangible fixed assets having a value to the charity greater than one year, other than those acquired for specific purposes, are capitalised. It is the charity's policy to capitalise all relevant expenditure greater than £500.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Funds are classified as either unrestricted funds or restricted funds, defined as follows:

Unrestricted funds are expendable at the discretion of the Trustees in furtherance of the objects of the charity. If parts of the unrestricted funds are earmarked at the discretion of the Trustees for a particular purpose, they are designated as a separate unrestricted designated fund. This designation has an administrative purpose only and does not legally restrict the Trustees discretion to apply the funds.

Restricted funds are funds subject to specific requirements as to their use which may be declared by the donor or with their authority or created through legal process, but still within the wider objects of the charity.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Financial instruments

The charity has no complex financial instruments but does hold basic financial instruments of; cash at bank, debtors and creditors.

Cash and cash equivalents comprise cash at bank and on hand, foreign currency on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. A bank overdraft would be shown within current liabilities.

Debtors are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less losses for bad debts except where the effect of discounting would be immaterial. In such cases, debtors are stated at cost less losses for bad debts.

Creditors are initially recognised at fair value and subsequently measured at amortised cost using the effective interest rate unless the effect of discounting would be immaterial. In such cases creditors are stated at cost.

Employee benefits

The total cost of employee benefits to which employees have become entitled as a result of service rendered to the entity during the reporting period are recognised and charged to the profit and loss account in the period to which they relate.

The costs 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.

Volunteers

In accordance with FRS 102 and the Charities SORP (FRS 102), the economic contribution of general volunteers is not recognised in the financial statements due to inaccurate measurement bases.

Provision for liabilities

A provision is initially recognised when there is an obligation at the balance sheet date as the result of a past event, it is probable that there will be the transfer of funds in settlement and the amount of the obligation can be estimated reliably. The provision is subsequently measured by placing a charge against the provision only for expenditure for which the provision was originally recognised.

2.	DONATIONS AND LEGACIES

2025

2024

£

£

Service contracts

1,245,653

1,283,455

Donations

1,772

3,553

1,247,425

1,287,008

3.	OTHER TRADING ACTIVITIES

2025

2024

£

£

Fundraising events

9,000

6,000

4.	INVESTMENT INCOME

2025

2024

£

£

Deposit account interest

5,711

3,909

5.	INCOME FROM CHARITABLE ACTIVITIES

2025

2024

Activity

£

£

Grants

Main charitable activity

106,946

103,841

Grants received, included in the above, are as follows:

2025

2024

£

£

Scottish Government - Equalities & Human Rights Fund

93,956

93,957

Voluntary Action

2,092

1,886

Scottish Social Services Council

2,400

-

Cycling UK

-

7,998

David Solomon Charitable Trust

500

-

JTH Charitable Trust

500

-

Hugh Fraser Foundation

2,000

-

Glasgow Council for the Voluntary Sector

5,498

-

106,946

103,841

6.	CHARITABLE ACTIVITIES COSTS

Direct

Support

Costs (see

costs (see

note 7)

note 8)

Totals

£

£

£

Main charitable activity

772,836

577,516

1,350,352

7.	DIRECT COSTS OF CHARITABLE ACTIVITIES

2025

2024

£

£

Staff costs

707,767

717,444

Telephone

3,632

7,720

Travel & subsistence

33,480

35,597

Equipment

9,159

7,089

Room hire & catering

1,187

1,997

Training

10,421

13,469

Project expenses

7,190

21,946

Donations

-

1,652

772,836

806,914