REGISTERED COMPANY NUMBER: SC098460 (Scotland)

REGISTERED CHARITY NUMBER: SC014665

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

FOR

ARCHWAY (RESPITE CARE AND HOUSING)

LIMITED

Page

Report of the Trustees

1

to

5

Report of the Independent Auditors

6

to

8

Statement of Financial Activities

9

Balance Sheet

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

to

21

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

The Objectives of Archway (Respite Care and Housing) Limited are to provide support to those in need by reason of age or disability or some other disadvantage resulting in additional support needs in Scotland. Primarily, this support comprises respite care on a planned or emergency basis for people of all ages with a learning disability and to provide residential accommodation for adults with a learning disability. From time-to-time, other services will be provided if they are consistent with the provision of the principal objects and provided they further the welfare of the residents and their families. In general, the aim of Archway is to improve the quality of life for the services users and their families. The Board of Archway is voluntary.

STRATEGIC REPORT

Achievements and performance

In the period under review, Archway continued to provide respite of varying durations to service users and permanent accommodation to residents, whilst endeavouring to maintain high quality service provision to all service users with a uniformity of standards across all services. As a part of this process, the in-house provision of Scottish Vocational Qualifications in Social Care (SVQ) has continued. The management team regularly reports on progress to the Board.

During the year the work continued to complete the organisational restructuring plan approved by the Board with the recruitment of a Chief Executive Officer to lead the organisation into the next phase of its development and in January 2025 Iain McKenna was appointed CEO of Archway.

A further change was the early retirement of the Head of Services and to date this position has not been filled on a permanent basis.

The major area of focus for the HR manager to improve recruitment and retention across the organisation has continued. Although the market for care staff remains extremely challenging, the implementation of a more structured recruitment process and initiatives to retain staff has resulted in an improved success rate the results of which are reported to the Board.

In September 2022 Archway took the step of gaining accreditation as a "Living Wage" employer which means there is a commitment to always paying at least the minimum living wage to all staff.

During the year, the strategy to fully exit Berryden Mills (BDM) stalled due to management realisation that the alternative accommodation planned for the two remaining residents was unsuitable. Work continued to identify suitable accommodation but this remained a work in progress at year end. The house in Rosemount Terrace, which had been leased to accommodate the remaining two residents, plus two additional people, had to be released as the Aberdeen Health and Social Care Partnership (AHSCP) was unable to find the appropriate funding for the additional residents.

There is still a concern on long term funding of services due to the national and local constraints that local authorities are under with its knock-on effect on AHSCP. Archway continues to be appreciative of the support received from AHSCP, but there remains a degree of uncertainty in part due to length of contracts and the Board remains vigilant to this.

Financial review

In many ways the year which ended on 31 March 2025 was the perfect storm for Archway (Respite Care & Housing) Limited. The Board had anticipated a deficit would be incurred during the year in relation to the approved organisation restructuring programme. However, a significantly greater than expected deficit was actually incurred due largely to the following factors:

- It became apparent that due to Local Authority/AHSCP funding constraints the Care at Home initiative which the company had initiated to complement its existing Respite Service offering was no longer viable and the Company was forced to exit this business.

- The delayed exit from BDM had a very significant financial impact for the company due to the high cost of running a service for 2 people and although some additional support was received from AHSCP, Archway ended up bearing most of the additional cost of providing this service.

- Several vacancies occurred at Archway Supported Living Facilities and these took much longer than expected to fill due to the importance of ensuring compatibility of new tenants with the existing occupants and this resulted in a significant loss on income whilst the staffing costs remained as planned.

- Extraordinary maintenance costs were incurred, and one Respite Unit was closed for a week to allow unplanned maintenance work to be undertaken.

- Additional admin costs were incurred to support Care at Home and the new Rosemount Terrace Supported Living Unit which has since been released due to lack of funding.

- Service rate increases awarded in April by Scotland Excel (on behalf of AHSCP) did not take into account the impact of inflation of the cost structure and although an appeal was submitted with justification for a further uplift to all rates the appeal was rejected.

Although these factors collectively have had a significant impact on reserves, the Board is satisfied that steps are being taken to protect remaining reserves and to ensure the continued viability of the Company. Agreement has been reached with the Local Authority on a funding plan for BDM that will be cost neutral for Archway until an appropriate long-term solution has been identified.

The Company remains committed to providing a stable, high-quality service, staffed by well trained and motivated staff, which is essential to the well-being and development of the service users and residents. Given continuing local authority financial constraints it is essential that Archway continues to offer a cost-effective service without sacrificing quality. Furthermore, it is hoped that current initiatives to improve recruitment and retention of quality care staff will reduce costs in the longer term.

Principal risks and uncertainties

The Trustees consider that the most significant risk faced by Archway is service rates not keeping pace with operating cost inflation due to Local Authority funding constraints leading to reduced ASCHP budgets.

The Trustees consider that the most significant risk faced by Archway is service rates not keeping pace with operating cost inflation due to Local Authority funding constraints leading to reduced ASCHP budgets.

The funding risk is ever present due to the way in which the local authorities are themselves funded. In addition, as stated above, with the move towards self-directed support there is always a risk that people requiring services, such as Archway provides, will not choose Archway as their service provider. It is therefore essential that Archway provides a high-quality service and this requires ongoing investment.

A regular review of employment terms and conditions, including salaries, is carried out to ensure that the Company remains competitive in the labour market. To date, this policy has been successful. As a parent-led organisation, Archway is acutely aware of the risks associated with abuse, both physical and mental, and has ensured that appropriate policies, procedures and training are in place to mitigate this risk. Archway also has in place a "whistle blowing" policy, which encourages staff to raise in confidence any concerns they might have over any aspect of the operations.

Archway has also continued to establish and develop further links with the local Aberdeen Medical School to create greater awareness of the medical needs of those with learning disabilities and continues to work with the Senior Lecturer in Medical Education and Coordinator Medical Humanities SSC at Suttie Centre for Teaching & Learning in Healthcare and along with other medical consultants and therapists to present information in a focused teaching session twice a year to 4th and 5th year medical students. This is now a fixed part of the medical teaching curriculum. Archway is involving the families of service users in this initiative, inviting families and guardians to pass on their knowledge and experience of the medical care they have received and suggesting ways to improve treatment outcomes for people with learning disabilities.The Risk Register, which sets out the high-level risks, their evaluation and mitigation, is reviewed on a twice-yearly basis by a Risk Committee and the findings reported to the Board. In addition, the Company's Business Continuity and Crisis Communication Plan is regularly reviewed and updated as necessary.

The Covid-19 pandemic has highlighted the necessity of being prepared for such unprecedented events. The effects of such a virus can be serious for the service users and staff, in addition to the financial impact that might occur due to closure of services. A review of Archway's response to the pandemic was completed to establish lessons learned which will help to mitigate in future in so far as possible the risks presented.

Future developments

Following the opening of the St Margaret's Place service in May 2019, Archway set out its strategic objectives to develop further its provision of permanent accommodation and alternative forms of respite to meet the expressed wishes and need of families. To this end, Archway will continue to work with the local authorities and other agencies to develop new services for people with learning disabilities However, Archway will continue to have a dialogue with the families of service users to maintain accurate personal care plans and ensure that any services developed are in keeping with the wishes of those families and meet the needs of the potential residents. The strategic objectives of the Company are constantly under review to determine the direction the Company should take in view of the continuing debate over funding for services. As noted above, the house in Rosemount Terrace, which had been intended to relocate the two remaining residents in BDM, was released due to the inability of AHSCP to provide the required additional funding. However, Archway will continue to examine the possibilities for the relocation of the remaining residents.

There is continuing concern with regard to the long-term viability of the Westburn Road property and it has been determined that alternative premises to permit the relocation of the residents should be sought. This is a long-term project and will be pursued by a sub-committee comprising Directors and members of the management team.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Archway (Respite Care and Housing) Limited is a company limited by guarantee, established in 1986, with no share capital, and is the subsidiary of Archway Charitable Trust, which is its sole Member.

The principal activities of the Company, as detailed in the Articles of Association, are to provide respite care on a planned or emergency basis for people of all ages with a learning disability and to provide residential accommodation for adults with a learning disability in Scotland.

The majority of the Directors, who are appointed by the Board of Archway Charitable Trust, are parents, carers or close relatives of service users of the Company. The recruitment of additional or replacement directors is dependent on the type of skills, experience and knowledge required at that particular time. This is determined by carrying out a skills' audit of the Board and ascertaining any gaps that require to be filled. The skills' audit can also identify training needs for the current Directors. Those with close links with service users may be selected if they have expressed an interest in the Company, whilst professionals will be head-hunted.

The Board is responsible for implementing the strategic and policy decisions made by the parent company and meets on a bi-monthly basis to conduct the business of the organisation.

The Chief Executive Officer is the most senior employee of the Company and reports to the Board. The CEO is responsible for developing procedures to implement the policy decisions taken by the Board and for all operational matters.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

SC098460 (Scotland)

Registered Charity number

SC014665

Registered office

71 Westburn Road

Aberdeen

AB25 2SH

Trustees

T M Morgan (resigned 21.1.25)

J R Sangster

K Simpson

L Morrice

D R Stanley

Dr B Brock

E Gardyne

Dr A Milton

M Bowyer

B Ashcroft

L D Thomson

G Henry (appointed 24.6.25)

E Gardyne is the Chairman; and M Bowyer is the Financial Officer.

Company Secretary

R Hessing

Auditors

Nuvo Audit Limited

First Floor Sterling House

Outrams Wharf

Little Eaton

Derbyshire

DE21 5EL

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Archway (Respite Care and Housing) Limited 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;

-	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, Nuvo Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 4 November 2025 and signed on the board's behalf by:

M Bowyer - Trustee

Opinion

We have audited the financial statements of Archway (Respite Care and Housing) Limited (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 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 Statement of Trustees' Responsibilities, 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:

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company, focusing on provisions of those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks identified include:

- UK GAAP

- Companies Act 2006

- Corporation Tax legislation

- VAT legislation

- Health and Safety legislation

We gained an understanding of how the company is complying with these laws and regulations by:

- enquiry of management, those charged with governance and the entity's solicitors around actual and potential litigation and claims;

- enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations;

- reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by discussions with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management oversee the implementation and operation of controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each identified risk. The following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

- reviewing the level of and reasoning behind the company's procurement of legal and professional services;

- performing audit procedures over the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business and reviewing judgements made by the management in their calculation of accounting estimates for potential management bias.

Our audit procedures were designed to respond to the risk of material misstatement in the financial statements, recognising that the risk of not detecting a material risk due to fraud is higher than the risk of not detecting one resulting from error as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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.

Alison Brown (Senior Statutory Auditor)

for and on behalf of Nuvo Audit Limited

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

First Floor Sterling House

Outrams Wharf

Little Eaton

Derbyshire

DE21 5EL

4 November 2025

2025

2024

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

1,280

20,000

21,280

12,201

Charitable activities

4

Respite Care and Housing

3,744,913

-

3,744,913

3,664,647

Investment income

3

25,365

-

25,365

20,806

Total

3,771,558

20,000

3,791,558

3,697,654

EXPENDITURE ON

Charitable activities

5

Respite Care and Housing

4,209,542

26,327

4,235,869

3,814,142

NET INCOME/(EXPENDITURE)

(437,984

)

(6,327

)

(444,311

)

(116,488

)

Transfers between funds

16

(2,895

)

2,895

-

-

Net movement in funds

(440,879

)

(3,432

)

(444,311

)

(116,488

)

RECONCILIATION OF FUNDS

Total funds brought forward

1,663,498

110,292

1,773,790

1,890,278

TOTAL FUNDS CARRIED FORWARD

1,222,619

106,860

1,329,479

1,773,790

2025

2024

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Intangible assets

11

-

-

-

72

Tangible assets

12

297,849

106,860

404,709

413,018

297,849

106,860

404,709

413,090

CURRENT ASSETS

Debtors

13

377,441

-

377,441

459,629

Cash at bank

701,364

-

701,364

1,035,355

1,078,805

-

1,078,805

1,494,984

CREDITORS

Amounts falling due within one year

14

(154,035

)

-

(154,035

)

(134,284

)

NET CURRENT ASSETS

924,770

-

924,770

1,360,700

TOTAL ASSETS LESS CURRENT LIABILITIES

1,222,619

106,860

1,329,479

1,773,790

NET ASSETS

1,222,619

106,860

1,329,479

1,773,790

FUNDS

16

Unrestricted funds:

General fund

1,215,573

1,656,299

Revaluation reserve

7,046

7,199

1,222,619

1,663,498

Restricted funds:

Fundraising

106,860

110,292

TOTAL FUNDS

1,329,479

1,773,790

The financial statements were approved by the Board of Trustees and authorised for issue on 4 November 2025 and were signed on its behalf by:

M Bowyer - Trustee

Cash flows from operating activities

Cash generated from operations

1

(333,384

)

(180,269

)

Net cash used in operating activities

(333,384

)

(180,269

)

Cash flows from investing activities

Purchase of tangible fixed assets

(25,972

)

(31,967

)

Interest received

25,365

20,806

Net cash used in investing activities

(607

)

(11,161

)

Change in cash and cash equivalents in the reporting period

(333,991

)

(191,430

)

Cash and cash equivalents at the beginning of the reporting period

1,035,355

1,226,785

Cash and cash equivalents at the end of the reporting period

701,364

1,035,355

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

2025

2024

£

£

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

(444,311

)

(116,488

)

Adjustments for:

Depreciation charges

34,255

36,157

Loss on disposal of fixed assets

98

1,941

Interest received

(25,365

)

(20,806

)

Decrease/(increase) in debtors

82,188

(63,809

)

Increase/(decrease) in creditors

19,751

(17,264

)

Net cash used in operations

(333,384

)

(180,269

)

2.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank

1,035,355

(333,991

)

701,364

1,035,355

(333,991

)

701,364

Total

1,035,355

(333,991

)

701,364

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.

The financial statements have been prepared on a going concern basis despite the change in the way the services are now funded by the local authorities which, as stated in the narrative of the Trustees' report, remains dependent on Archway continuing to provide a cost-effective service which meets the needs of the service users. Even with the financial constraints which the local authorities face, there is a growing need for long-term accommodation for people with learning difficulties, so this side of Archway's business is going to continue, if not increase. In addition, although the local authorities will in all likelihood reduce the funding to families for respite care, this element of service will also continue. The Trustees are therefore confident that the going concern basis of preparing the financial statements is appropriate.

The presentation currency is sterling.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the charitable company's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis.

Incoming resources

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably. Income from government and other grants, whether 'capital' grants or 'revenue' 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 reliably and is not deferred.

Resources expended

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost 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 resources.

Intangible fixed assets

Development costs are being written off evenly over a period of 5 years.

Tangible fixed assets

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

Freehold property

-

2% on cost

Improvements to property

-

2% on cost

Fixtures and fittings

-

20% on cost

Computer equipment

-

20% on cost

The assets' residual values and useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period. The effect of any changes is accounted for prospectively.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within the statement of financial activities.

Taxation

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

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Hire purchase and leasing commitments

Operating lease payments are charged to the Statement of Financial Activities in the period to which they relate.

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.

Donations-in-kind

Donations-in-kind are included in the Statement of Financial Activities at cost, or where the cost is not known, at their estimated monetary value.

2.	DONATIONS AND LEGACIES

2025

2024

£

£

Donations

21,280

-

Donations in kind

-

12,201

21,280

12,201

3.	INVESTMENT INCOME

2025

2024

£

£

Deposit account interest

25,365

20,806

4.	INCOME FROM CHARITABLE ACTIVITIES

2025

2024

Activity

£

£

Board/Respite fees

Respite Care and Housing

1,385,260

1,315,353

Care at home fees

Respite Care and Housing

28,501

62,113

Local authority funding

Respite Care and Housing

2,283,215

2,251,381

Grant income

Respite Care and Housing

9,600

-

Admin recharge

Respite Care and Housing

37,497

25,000

Sundry income

Respite Care and Housing

840

10,800

3,744,913

3,664,647

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

2025

2024

£

£

Government funding

2,283,215

2,251,381

5.	CHARITABLE ACTIVITIES COSTS

Support

Direct

costs (see

Costs

note 6)

Totals

£

£

£

Respite Care and Housing

4,199,264

36,605

4,235,869

6.	SUPPORT COSTS

Governance

Finance

costs

Totals

£

£

£

Respite Care and Housing

4,248

32,357

36,605

Support costs, included in the above, are as follows:

2025

2024

Respite

Care and

Total

Housing

activities

£

£

Bank charges

4,248

1,339

Auditors' remuneration

6,638

6,438

Accountancy fees

21,879

21,853

Legal and professional fees

3,840

-

36,605

29,630

7.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2025

2024

£

£

Auditors' remuneration

6,638

6,438

Depreciation - owned assets

34,182

35,294

Other operating leases

117,937

125,627

Deficit on disposal of fixed assets

98

1,941

Development costs amortisation

72

862

8.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2025 nor for the year ended 31 March 2024.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2025 nor for the year ended 31 March 2024.

9.	STAFF COSTS

2025

2024

£

£

Wages and salaries

3,276,604

2,923,433

Social security costs

256,013

218,681

Other pension costs

54,337

48,267

3,586,954

3,190,381

The average monthly number of employees during the year was as follows:

2025

2024

Management & Administration

9

9

Operational

119

127

128

136

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2025

2024

£60,001 - £70,000

-

1

Agency staff are used on an as and when required basis for general cover. During the year the cost was £319,882 (2024: £244,214).

10.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

funds

funds

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

12,201

-

12,201

Charitable activities

Respite Care and Housing

3,664,647

-

3,664,647

Investment income

20,806

-

20,806

Total

3,697,654

-

3,697,654

EXPENDITURE ON

Charitable activities

Respite Care and Housing

3,805,058

9,084

3,814,142

NET INCOME/(EXPENDITURE)

(107,404

)

(9,084

)

(116,488

)

Transfers between funds

864

(864

)

-

Net movement in funds

(106,540

)

(9,948

)

(116,488

)

RECONCILIATION OF FUNDS

Total funds brought forward

1,770,038

120,240

1,890,278

TOTAL FUNDS CARRIED FORWARD

1,663,498

110,292

1,773,790