The Management Committee present their annual report and financial statements for the year ended 31st March 2025. This report includes the requirements of a Directors’ Report under the Companies’ Act 2006.
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 charitable company’s Memorandum and Articles of Association, the Companies’ Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006, The Financial Reporting Standard applicable in the UK and the Republic of Ireland (“FRS 102” ) 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 Charity’s main objective continues to be to carry out respite care and personal care:
(i) to relieve stress on the persons or family caring for physically or mentally disabled or elderly persons, and
(ii) in appropriate circumstances, to care for disabled or elderly persons living alone.
In furtherance of these objectives, the charity aims to support people in their own homes through the employment, on a full-time or part-time basis, of approved home care attendants. These attendants provide respite for carers of people of all age groups, and support those who are frail or elderly, who have a physical disability, mental illness, learning disability or dementia. They are able to alleviate the stress which carers experience as a result of care responsibilities and they undertake a range of tasks to enable people to remain independent and living at home for as long as possible.
As in past years, we have continued to concentrate on re-balancing our caring hours towards more respite services (as against domiciliary) to promote the “Caring for Carers” aspect of our work.
The strategies we have employed to meet these objectives include:
continuing our work towards the implementation of National Standards of service and of National Occupational Standards through SVQ level 2 in care and level 3 in care for supervisors.
continuing our work in partnership with other agencies to provide the widest range of services which match the needs of the people of Perth & Kinross.
The Charity’s policy is to consult, and to discuss, with employees (through unions, staff councils and face-to-face meetings where appropriate), matters likely to affect employees’ interests and concerns. Regular staff newsletters seek to achieve a common awareness, on part of employees, of any factors affecting the charity’s performance.
Crossroads works continually to offer a high quality, flexible respite care and domiciliary personal service to carers and individuals, providing, on average, 961 hours of care per week during the financial year.
Staff recruitment and retention has continued to be a key focus for our Service Manager and Coordinators.
Monitoring the quality and performance of our services
We continue to monitor the quality of the services we provide and the performance of our staff by various means including the following:
An annual client questionnaire which includes a request for comments on the quality of the services we provide. This is fed back to our management committee.
Service reviews are carried out twice a year – once during a home visit, and the other via telephone by a manager.
The staff are also required to complete a questionnaire in which we seek their views and opinions on the services we provide inviting comments and opinions on how we might improve and develop our services. Staff are also invited to comment on the support and training we provide for them.
The Management Committee seek to achieve their strategic aims through their policy of continual development of training programmes for staff and through external “SVQ” qualifications.
Investment Policy and Objectives
The charity’s investment policy is designed to support its long-term financial sustainability while ensuring that funds are available to meet the charity’s operational and strategic needs. The primary objectives of the investment policy are to:
Preserve Capital: Ensure that the capital base of the charity’s investments is maintained, safeguarding the value of the funds for future use.
Generate Income: Achieve a level of income sufficient to supplement the charity’s ongoing activities.
Growth of Capital: Where possible, achieve capital growth to increase the value of the charity’s assets over time, thereby enhancing its ability to fund future initiatives.
The charity’s investments are managed in accordance with these objectives, with the investment strategy regularly reviewed to ensure it remains aligned with the charity’s financial goals and risk tolerance. The investment portfolio is diversified across various asset classes, including equities, fixed income, and alternative investments, to mitigate risk and optimise returns.
Performance Against Objectives
During the financial year, the charity’s investment portfolio delivered a steady performance, achieving a total return of 1.0%. This performance met the charity’s expectations, given the volatility of the financial markets.
Preservation of Capital: The capital base was increased through further investment, with the portfolio’s value at year-end standing at £517,880.
Income Generation: The portfolio generated an income of £7,679, which was in line with expectations.
Capital Growth: The portfolio’s capital decrease over the year was 2.1%, reflecting fluctuating market trends.
The net assets of the charity at 31 March 2025 were £670,421 (2024: £561,018). The charity depends to a large extent on Local Authority funding and during the year grants of £505,478 were received from the Local Authority (2024: £438,130).
The surplus for the year to 31 March 2025 was £109,403 (2024: £90,054) and this was achieved despite the very significant challenges posed to the Charity and to similar bodies in the care sector.
Unconditional donations received in the year amounted to £7,436 (2024: £7,207) and these sums, together with other fundraising income, were spent on all aspects of providing the service where the statutory funding was insufficient to cover the cost of the relevant services.
The reserves of the charity at 31 March 2025 were £670,421 (2024 £561,018) all unrestricted. The Management Committee consider that reserves at this level will ensure that, in the unlikely event of a significant drop in funding, the Charity will be able to maintain the current levels of activity while considering how additional funding might be raised to sustain core activities.
It continues to be the policy of the Charity that unrestricted funds which have not been earmarked for a specific purpose should be maintained at a level equivalent to between six and nine months expenditure (between, approximately, £540k to £810k).
Risk management
The management committee regularly assesses and monitors the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate exposure to these risks.
The major areas of risk that have been identified are as follows:
Difficulties in recruiting and retaining sufficient staff to provide the number of care hours needed to break-even.
That the charity maintains a sufficient level of reserves to continue to provide care services in the community.
Sufficient demand for services via Perth & Kinross Council and private clients is maintained.
Key Strategies
To continue to seek and recruit high-calibre staff in order to service the needs of our clients and to meet our contractual obligations.
To pursue every avenue to attempt to generate additional care hours to enable us to continue to provide high-class services to council and private clients alike.
To maintain the very high standards of service to meet the needs of our service users.
To continue to meet the very high standards and requirements of the Care Inspectorate.
To continue to review, appraise and improve our marketing strategies, internal systems and websites.
To ensure that we maintain our high level of professionalism at all times and in all areas.
To maintain, improve and develop further our internal office, administration and reporting systems.
The charity is a company limited by guarantee and was incorporated and registered as a charity under the auspices of the Office of the Scottish Charity Regulator (“OSCR”) on 20 January 1998. The Charity’s governing document comprises a Memorandum of Association which established its objects and powers and it is governed by its Articles of Association.
The Management committee, 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:
Any person living within the Charity’s area of operation who wishes to contribute to its maintenance is eligible to be a member of the charity. Membership is at the discretion of the Management Committee. Only members are eligible for election to the Management Committee, subject to the recommendation of existing Management Committee members.
Mrs Zoe E Cormack is a director of Cormack HR Ltd which has a contract with Crossroads (Perth & Kinross) Care Attendant Scheme to provide Human Resources services in the ordinary course of business. Fees charged by Cormack HR Ltd in the year to 31 March 2025 amounted to £50.
Ms Julia Reid is a director of Accountancy Services (Auchterarder) Ltd which has a contract with Crossroads (Perth & Kinross) Care Attendant Scheme for the provision of accounting and payroll services in the ordinary course of business. Fees paid to her management accounting firm for March 2025 were £30,240.
No other member of the Management Committee has any beneficial interest in the Company. All members of the Management Committee are members of the Company and guarantee to contribute £1 in the event of a winding-up.
The members of the Management Committee of the Company are also charity trustees for the purposes of company/charity law and under the company’s Articles of Association are known as members of the Management Committee. Under the requirements of the Memorandum and Articles, at least one-third of the Management Committee, who are subject to retire by rotation, must retire at the Annual General Meeting, but may offer themselves for re-election.
Due to the nature of the charity’s work, the Management Committee is keen to ensure that the requirements of our service users are appropriately reflected through the diversity of the body of trustees. Accordingly, new members with relevant experience and qualifications are keenly sought to replace or enhance the existing membership, when appropriate.
The Management Committee currently consists of a Board of 7 Directors who meet every 6 weeks to oversee the administration of the Charity and to implement its strategic plans.
The Board appoint the Service Manager who is responsible for the day-to-day operational management of the organisation. The Coordinators report directly to the Service Manager and are responsible for their own team of carers and clients’ needs and well-being. In September 2025, the board have appointed a CEO to work alongside the Service Manager and share these responsibilities until her upcoming retirement.
Supervision of staff, ensuring good working practices, is the responsibility of the co-ordinators. Together, the Service manager and the co-ordinators work together as a team to ensure the overall performance of the charity meets the expectations of the Committee.
The average number of care staff is currently 59 (2024: 58).
The charity’s accounting and payroll functions are outsourced to a local firm of accountants and payroll provider, respectively, and these arrangements work very satisfactorily.
The Management Committee carry out a regular review of the remuneration of all staff as part of the annual budgeting process.
The Management Committee is not aware of any other related parties not already mentioned in this report.
In accordance with the company's articles, a resolution proposing that MMG Archbold Limited be reappointed as auditor of the company will be put forward at a General Meeting.
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies. The Management Committee’s report was approved by the Board of Management Committee and signed on its behalf by:
The Management committee, who are also the directors of Crossroads (Perth & Kinross) Care Attendant Scheme for the purpose of company law, are responsible for preparing the Management Committee's 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 Management committee 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 Management committee are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Management committee 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 Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 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.
Opinion
We have audited the financial statements of Crossroads (Perth & Kinross) Care Attendant Scheme (the ‘charity’) for the year ended 31 March 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the Management committee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Management committee with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Management committee are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
We have nothing to report in respect of the following matters in relation to which the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:
the information given in the financial statements is inconsistent in any material respect with the Management committee's report; or
proper accounting records have not been kept; or
the financial statements are not in agreement with the accounting records; or
we have not received all the information and explanations we require for our audit.
As explained more fully in the statement of Management committee's responsibilities, the Management committee, who are also the directors of the charity for the purpose of company law, 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 Management committee 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 Management committee are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Management committee either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
We gained an understanding of the legal and regulatory framework applicable to the charity and the sector in which it operates;
We identified the laws and regulations applicable to the charity through discussions with management and through our own knowledge of the sector;
We enquired with management about their own identification and assessment of the risk of fraud and irregularities;
We considered the opportunities that may exist within the organisation for fraud and identified the greatest risk in relation to revenue recognition and management override of internal controls. Our audit procedures to respond to these risks included, but were not limited to:
Reviewing the financial statement disclosure and testing of financial statement balances to supporting documentation;
We assessed the extent of compliance with key laws and regulations through making enquiries with management, review of meeting minutes and inspecting regulatory correspondence;
We communicated relevant identified laws and regulations and potential fraud risks to all members of the engagement team and remained alert to any indications of fraud or non-compliance throughout the audit;
We performed analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatements due to fraud;
We tested journal entries to identify unusual transactions and evaluated the underlying rationale;
We evaluated accounting estimates for evidence of any bias that may represent a material misstatement.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charity’s trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
MMG Archbold Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Crossroads (Perth & Kinross) Care Attendant Scheme is a charitable company limited by guarantee incorporated in Scotland and is registered with OSCR. The registered office is The Gateway, North Methven Street, PERTH, PH1 5PP.
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), FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the Management committee have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Management committee 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 Management committee 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.
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.
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
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.
In the application of the charity’s accounting policies, the Management committee are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Adult and Child Care grants
Home Care Service
None of the Management committee (or any persons connected with them) received any remuneration, benefits or reimbursement of expenses from the charity during the year. The trustees did not have any expenses reimbursed during the year (2024 - £Nil), nor were any expenses paid directly to third parties on their behalf.
The average monthly number of employees during the year was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The above assets are used for management and administration purposes.
Deferred income is included in the financial statements as follows:
Deferred income represents monies received from the council for service hours not yet carried out. Amounts are released as and when service hours are fulfilled.
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
The purpose of the Scottish Social Services Council (SSSC) grant is to provide a contribution towards the costs associated with meeting the qualification criteria set by SSSC for registration.
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Total lease payments recognised as an expense during the year amounted to £14,048 (2024 - £12,682)
During the year the charity entered into the following transactions with related parties:
The trustee Zoe Cormack is also a director of Cormack HR Ltd. During the year £50 (2024 - £9,672) was paid to her company for HR services.
The trustee Julia Reid was appointed in March 2024 and is also a director of Accountancy Services (Auchterarder) Ltd. During the year £30,240 (March 2024 £2,880) was paid to her company for accountancy services.
The charity had no material debt during the year.