The trustees, who are also directors for the purposes of company law, present their report and the financial statements of the charitable company for the year ended 31 March 2025.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charitable company's Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)".
Aberdeen Cyrenians is a charitable health and social care organisation based in Aberdeen, Scotland.
Founded in 1968 by Aberdeen University students as a soup kitchen, Aberdeen Cyrenians has grown into a cornerstone of the community; providing care and support to those facing crisis, trauma, addiction, and isolation. For more than 55 years Aberdeen Cyrenians has empowered and supported the most vulnerable people in Aberdeen’s communities though a collaborative, integrated approach to social inclusion.
Aberdeen Cyrenians is a “pioneer of firsts” throughout its history including:
Establishing the first homelessness day centre and women’s hostel in Aberdeen.
First “wet hostel” in the UK, offering safe accommodation with a managed alcohol plan – an approach that has since been replicated across Europe.
Launching the first rent guarantee scheme and care leavers education projects.
Being a Housing First pathfinder, an approach to ending homelessness through housing and support provision, prioritising access to permanent housing with tailored, open-ended, wraparound support that emphasises choice and control.
Founding member of the first North East third sector social care consortium – the Granite Care Consortium (GCC).
The objectives of Aberdeen Cyrenians as outlined in our Articles of Association are to deliver public and community benefits in the North East of Scotland by providing a range of support services for those with multiple complex needs, those who are homeless, at risk of homelessness or affected by homelessness in any way, and to:
Prevent or relieve poverty and financial hardship;
Promote social inclusion and equality and diversity; and,
Protect vulnerable individuals from harm or abuse.
Our approach is person-centred, flexible, and compassionate, aiming to empower individuals by building skills and resilience. It promotes choice, empowers rights and supports people to be included – our support is a hand up not a hand out.
Strategies for achieving aims and objectives
In conjunction with corporate partners, Aberdeen Cyrenians reviewed its strategic plan in FY23/24 which included a SWOT Analysis of potential future scenarios for the organisation.
Societal, technological, environmental, economic, and political changes determine the future with Aberdeen Cyrenians playing a distinct role in each scenario based on the decisions it takes.
Organisational innovation continues through engagement with key stakeholders such as Aberdeen City Council and Aberdeen Health & Social Care Partnership as well as the other members of the GCC to ensure:
Evidence-based needs are met;
Partnership working is prioritised across the public, private and third sectors; and
Services remain effective, efficient and create long-lasting impact for the city of Aberdeen and its citizens.
The organisation aims to prevent homelessness and hospital admissions through a community-based, public health approach to wellbeing disparity.
By focussing on prevention and community support, we can potentially reduce the strain on emergency and statutory services and improve overall wellbeing in the city.
From this, the 2023-2026 Strategic Plan has been developed and is used as a tool to define Aberdeen Cyrenians goals and what actions it will take to achieve its ambition.
The strategic plan defines the purpose of the organisation:
To respond to the demands of societal challenges, which adversely impact people on our own doorstep.
Promoting choice and inclusion through the delivery of locally based services to communities in the North East.
Together, we use the diversity of our skills, disciplines, and experiences to raise awareness and to empower people to make positive, sustainable change.
Key highlights for FY24/25 include:
Over 2,000 households supported
Over 72,000 support sessions delivered
Over £57,000 gift-in-kind donations received
4,208 volunteer hours (27.5% increase from previous year)
13% increase in Care at Home service users
30% increase in Community Services users
Aberdeen Cyrenians continues to be a cornerstone of the North East community for those in need. The volume of gift-in-kind donations and volunteering hours, further demonstrate the depth of community engagement and the collective commitment to addressing vulnerability and social exclusion across the region
Care at Home Services – (“Care Choices” and Resilience, Inclusion, Sympathy & Empathy “RISE”)
Our care at home provides choice to empower adults with long-term support needs to remain within their home and local community.
We provide personalised care and support, to build independence, maintain safety and wellbeing, and reduce vulnerabilities.
Working towards achieving individualised goals which includes a range of flexible supports such as: medication assistance, meal preparation, and community engagement – all of which promotes independence, reduces isolation and loneliness, and enhances health and wellbeing.
We make the difference through:
Independence & Safety: Enabling independence by offering the support needed to safely remain at home in familiar surroundings close to their personal networks.
Community Involvement: Building connection and engagement with their local community for increased social support and physical activities. This could be going out for a walk around their local area, to joining a gym to support them with their wellbeing.
Rebuilding Confidence: Using positive future-focused and dignified care and support and providing encouragement that empowers people to regain their confidence to remain and rebuild independence.
Increased Wellbeing: Providing encouragement when people feel low by supporting access to additional social opportunities. Friendly professional relationships that build trust and understanding to better meet service user’s needs.
We delivered support to 156 people across the year, a 13% increase on FY23/24.
Community Services – Violence and Abuse Support Services (Ending Violence and Abuse Aberdeen “EVAA” and Strength for Tomorrow “SfT”)
Empowering survivors to take back control of their lives and recover a positive future in which they can flourish, free from discrimination.
We provide person-centred practical and emotional support through trauma-informed practice and strength-based goals. Working towards their journey of recovery, we empower people to increase safety, independence, and self-esteem.
Working in collaboration with local partnerships, we support those affected by gender-based violence and exploitation, childhood abuse, and LGBTQ+ discrimination, abuse and prejudice.
We make the difference through:
Resilience & Recovery: Helping survivors to improve their self-esteem and make positive changes in their life by focusing on strength-based goals. Group sessions supporting service users to meet others who have similar experiences, increasing social confidence, empowering survivors and rebuilding the ability to trust in adult relationships.
Safety Planning: People feel safer in their home by reducing or preventing risks of violence, abuse, and discrimination. Including safety planning, security equipment, legal assistance, as well as emotional stabilisation and coping strategies for self-regulation.
Housing: Supporting those fleeing or presenting as a victim of violence, abuse or discrimination who cannot return home. We specialise in finding safe immediate accommodation, reducing trauma by making applications on behalf of a victim, and providing wrap around support for other related needs for survivors and their dependents.
Advocacy & Support: Working in partnership with multi-agency groups in Aberdeen, advocating on behalf of service users and arranging wider appropriate support to enable survivors to engage with services that meet their needs. We work in collaboration and participate in local events such as the 16 Days of Activism against gender-based violence and Grampian Pride.
We delivered support to 167 people across the year, a 30% increase on FY23/24.
Direct Access Services (“DAS”) including Digital & Financial Inclusion (“DFI”)
With over 7,000 presentations to our Summer Street hub through the course of FY24/25, we provide a welcoming space to support people in Aberdeen who are experiencing poverty, homelessness and housing challenges, abuse, discrimination, or exclusion, ensuring they are supported to access the services they need as quickly and safely as possible through appropriate pathways.
Cost-of-living pressures are increasing demand for essentials. We meet immediate needs and support people to make long-term positive change.
We make the difference through:
Crisis Intervention: Person-centred emotional and practical support through advocacy to prevent eviction, access food, clothing, and toiletry provision; benefit applications; liaising with housing services, energy companies, DWP and Aberdeen City Council as well as external agencies for emergency temporary housing.
Social Inclusion & Wellbeing: many service users are socially isolated due to mental health and substance use challenges, poverty or not having a positive social network, family or friends. Our proactive support increases engagement and connection, reducing isolation and loneliness.
Homelessness Prevention: Supporting people to prevent homelessness by advocating for rights, supporting housing applications, rent, and managing arrears; maximising income entitlement, and assisting with energy providers, housing repairs, and moving on to secure settled housing.
Financial & Budget Guidance: Enabling individuals to maximise income by accessing all appropriate payments, support to budget for essential items such as food, shelter and heating, or signpost to internal and external agencies for more specialised support.
Residential Services
Residential services for adults affected by alcohol, substance use, and mental health challenges, with support needs to reduce isolation and harm, and build independence.
Wernham House offers an intensive support services for adults with 24/7 multiple and complex care needs. The service focuses on harm reduction and development of independent living skills.
Our care planning support stabilisation, reduction and abstinence from alcohol or other substances, enabling residents to recover.
We make the difference through:
Social Inclusion: Supporting people to reduce isolation and build new connections by engaging with other residents and the local community for increased social support, wellbeing, and physical activities.
Increased Wellbeing: Positive impact from individualised alcohol management. Increased shared understanding and creating boundaries leading to a positive and calm environment. Encouraging participation and empowering resident to influence service delivery.
Reduced Offending: Non-judgemental and holistic support to encourage reflection on causes and consequences of historical behaviours to reduce anti-social conduct.
Structure & Stability: Providing routine and structure with creates suitability to develop resilience and enables the learning of skills that promotes independence. Promotion of independent living through empowerment and recovery.
We delivered 18,680 support sessions, a 3% increase in the previous year with an average length of support of 51 months and included 4 successful transitions.
Volunteering
Volunteers continue to be crucial to us and are a big part of our team. Every volunteer makes a real difference in someone’s life, whether it is a friendly chat or helping staff behind the scenes, it all adds up to big changes for the better. Volunteering is also good for the volunteers, with the opportunity to learn new skills, meet new people and feel good about helping others.
A core group of volunteers undertake activities across:
Crisis support
Donation management
Community kitchen
Driving
Residential activities
4,208 hours of volunteering have been delivered, an increase of 27.5% on the previous year.
The main sources of our income are:
Aberdeen Health and Social Care Partnership: Through residential services, currently Wernham House, and as a founding member of the Granite Care Consortium.
National Lottery Community Fund: providing funding towards our Direct Access Service.
Santander Foundation: Funding our Digital & Financial Inclusion Service.
Scottish Government via Inspiring Scotland: Funding our gender-based violence and historical childhood abuse and trauma services.
We remain extremely grateful to the many individuals, community and corporate donors who make both financial and gift-in-kind donations to us, supporting our various projects.
Review of 2024/25 Finances
In line with the challenging economic climate, income generation remains vital for the ongoing work of Aberdeen Cyrenians.
Despite best efforts, the organisation experienced a shortfall in unrestricted income, resulting in operational deficits in core services.
This has prompted a renewed focus on diversifying income streams and strengthening financial resilience.
The approach to income generation remains of vital importance to the organisation and to that end there continues to be a significant focus from the Board and Leadership Team on the income generation strategy and aligning this with the cost forecasting and strategic plan for the organisation.
The organisation recognises the need to balance the opportunity to maximise and diversify the income streams available whilst still retaining value and impact with the aspiration to achieve cost neutrality.
Linked to this, the Finance & Investments (F&I) Sub-Committee have met with increased frequency over the financial year to regularly review P&L, cash flow and income , and cost forecasting, utilising different scenarios to aid planning and ensure a better understanding of risk and associated controls on overall spend.
As of 31 March 2025, total reserves are positive £2,105,310 (2024: reserves of £2,182,074). The total reserves are made up of unrestricted funds of £2,085,639 (2024 - £2,154,675) and restricted funds of £19,671 (2024 - £27,399).
The level of free-reserves, being the unrestricted reserves not tied up in tangible fixed assets amounts to £1,861,551 (2024 - £1,930,587). This equates to 61% of annual expenditure (2024 - 67%).
The levels of the various restricted funds and their purposes and unrestricted funds are set out in Notes 24 and 25 to the accounts.
The Board continues to regularly review the adequacy of reserves and believes it is appropriate that the total reserves held should be between 3 and 6 months of annual resources expended. This ensures the organisation can continue its current activities in the event of a significant drop in funding.
Monies placed in charitable investment funds during this period have been done so with the intent of making the best use of available resources whilst remaining prudent with the charity’s finances.
The investment meets the criteria of the organisation’s investment policy, was selected as a suitably low-risk investment that would provide future contingency funding for the organisation if required and aligns with relevant OSCR guidance. This was completed following due diligence and scrutiny by the F&I Sub-Committee and subsequent Board review and approval.
Significant events
CEO Appointment
In May 2024, the Board of Directors appointed Donna Hutchison as Chief Executive Officer. Donna originally joined Aberdeen Cyrenians in December 2022 as Head of Corporate and Business Services.
Her appointment marks a significant milestone in the organisation’s strategic development, strengthening Aberdeen Cyrenians’ capacity to respond to increasing demand and to drive forward its mission with renewed focus and ambition.
Under her leadership, the organisation has prioritised strategic alignment, enhanced stakeholder engagement, and initiated a review of service delivery models to ensure long-term sustainability and impact.
Major Risks
The organisation continues to operate within a challenging funding and economic environment, characterised by rising operational costs, increased demand for services, and constrained public and charitable sector resources.
Inflationary pressures and changes to commissioning frameworks have placed additional strain on core service delivery, while competition for grant funding and philanthropic support remains high.
Aberdeen Cyrenians is actively monitoring these risks and adapting its financial strategy to ensure sustainability, while advocating for long-term investment in preventative and person-centred support.
The Risk & Compliance Sub-Committee review the organisational risk register, in detail, regularly with a full review by the Board forming part of the annual programme of business. Measures taken to mitigate risks correlate with key initiatives undertaken by the Leadership Team as well as the themes and objectives defined in the 2023-2026 Strategic Plan.
In addition to service delivery, Aberdeen Cyrenians is committed to environmental, social, and governance (ESG) principles. Efforts are underway to improve sustainability practices, including ethical procurement and reducing environmental impact.
Digital transformation remains a key focus, with investments in data systems and digital tools to enhance service efficiency, reporting, and user experience.
As we look towards the future it is important for the organisation to recognise our success in meeting the enormous societal challenges that we continue to face, as evidenced by the increase in number of people supported and support sessions delivered across the majority of our services.
The continued economic downturn aggravates the cost-of-living crisis, and the risk of new government policies brings a level of uncertainty for society.
We believe there will continue to be an unbalanced accessibility to public sector services and the sector will need to integrate and collaborate with each other to address the current and future societal needs.
It is this future scenario that drives us to enhance and optimise delivery and act as a specialist partner for our current services as well as those currently being offered by the public sector.
Aberdeen Cyrenians is a charity registered in Scotland (No. SC014849) and also a charitable company limited by guarantee (SC070903).
Aberdeen Cyrenians is a membership organisation. The liability of each member is limited to £1, being the amount that each member undertakes to contribute to the assets of the organisation in the event of its being wound up whilst the individual is a member or within one year after the individual ceases to be a member, for:
Payment of the organisation’s debt and liabilities contracted before the individual ceases to be a member;
Payment of the costs, charges, and expenses of winding up; and
Adjustment of the rights of the contributories among themselves.
The total number of such guarantees on 31 March 2025 was 27 (2024 – 26).
No person is appointed as a Director unless the individual is a member of the organisation. No ex-employee of the organisation is eligible for appointment to the Board until that person has ceased to be an employee of the organisation for not less than 12 months.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Aberdeen Cyrenians Articles of Association state the minimum number of Directors is three and the maximum number is eighteen. In practice, the organisation aims to have 6-8 Directors, with a broad range of skills sets allowing for effective Board and Sub-Committee meetings.
Board recruitment is an ongoing process rather than specifically targeted campaigns. Below is an outline of the process:
Initial conversation between the interested party and CEO to discuss further what being a Board member entails and, the individual’s interest for becoming involved.
A face-to-face meeting will be organised to showcase some of the work undertaken.
If the interested party wishes to proceed then they complete the membership application, and provide a copy of their CV.
If the application is considered appropriate, and there no conflict of interests, a nominated Director will meet with the interested party for further discussion around the role including the responsibilities and requirements in relation to serving on the Board and the opportunity to observe a Board meeting will be provided.
If the application is not considered appropriate, or there are conflicts of interest, the application will be declined, and feedback provided.
The individual’s membership application will be reviewed as part of the Board meeting agenda and proposed/seconded by existing Directors. Once approved the Board can appoint the individual as a Director.
Once approved as a Director, the CEO will ensure the necessary process regarding the Articles of Association, legal and sector requirements (e.g., OSCR, Companies House notification) are completed.
Financial and decision-making authority
Whilst the running of the organisation is based on a high level of delegation from the Board of Directors to the Chief Executive Officer (CEO) there are some areas where, due to the need for co-ordination between functions or the effect on the organisation as a whole, that Board of Directors approval, is required.
This necessitates clear and workable arrangements regarding financial and decision-making authorities. Simply put, this means identifying who is authorised to spend or make decisions that impact Aberdeen Cyrenians.
As a registered charity, Aberdeen Cyrenians must ensure good stewardship of funds as well as demonstrable evidence of:
Robust financial and decision-making controls.
Assurance and governance processes.
This is detailed within the Financial & Decision-Making Authority Policy and is based on two key principles:
Compliance – This is crucial in relation to financial and decision-making authority as it protects the organisation from exposure to unnecessary risk.
Personal Responsibility – Anyone who makes commitments on behalf of the organisation (financial or otherwise) must be responsible for those decisions.
Responsibilities are set out as follows:
Board of Directors |
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Finance & Investment Sub-Committee (F&I SC) |
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Risk & Compliance Sub-Committee (R&C SC) |
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People & Culture Sub-Committee (P&C SC) |
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Chief Executive Officer (CEO) |
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Leadership Team |
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Finance Manager |
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Those with financial or decision-making authority |
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In accordance with the company's articles, a resolution proposing that Henderson Loggie LLP be reappointed as auditor of the company will be put at a General Meeting.
The trustees' report was approved by the Board of Trustees.
The trustees, who are also the directors of Aberdeen Cyrenians for the purpose of company law, are responsible for preparing the Trustees' 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 trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they 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 these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP (FRS102);
- 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 charitable company will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Opinion
We have audited the financial statements of Aberdeen Cyrenians (the ‘charitable company’) 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 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.
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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. 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. 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and
the directors' report included within the trustees' report has been prepared in accordance with applicable legal requirements.
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 directors' report included within the trustees' report.
We have nothing to report in respect of the following matters in relation to which 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
we have not received all the information and explanations we require for our audit; or
the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' report and from the requirement to prepare a strategic report.
As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charitable company 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 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.
We have been appointed as auditor under Chapter 3 of Part 16 of the Companies Act 2006 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Acts 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
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:
As part of our planning process:
We enquired of management the systems and controls the charitable company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. Management informed us that there were no instances of known, suspected or alleged fraud;
We obtained an understanding of the legal and regulatory frameworks applicable to the charitable company. We determined that the following were most relevant: Health and Safety; Data Protection Act 2018; Care Inspectorate; employment law (including the payroll and pension regulations); and compliance with the UK Companies Act, Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts Regulations 2006;
We considered the incentives and opportunities that exist in the charitable company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetrated, and tailored our risk assessment accordingly; and
Using our knowledge of the charitable company, together with the discussions held with management at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.
The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
Enquiries with management about any known or suspected instances of non-compliance with laws and regulations, including GDPR and employment law, and fraud;
Review of correspondence with regulators including OSCR, Care Inspectorate, and the Health & Safety Executive;
Review of legal fee expenditure and board meeting minutes;
Challenging assumptions and judgements made by management in their significant accounting estimates, in particular the valuation investments, the valuation and recoverability of debtors, the application of accruals and deferred income (including the provision for dilapidations), and the valuation of benefits in kind; and
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.
Owing to the inherent limitations of an audit, there is unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the 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. The primary responsibility for the prevention and detection of irregularities and fraud rests with the trustees.
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 charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and 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 charitable company's members and 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 charitable company, the charitable company’s members as a body,and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 20 to 38 form part of these financial statements.
The charitable company is a public benefit entity and a private company limited by guarantee, registered in Scotland and a registered charity in Scotland. The address of the registered office is Unit 4, First Floor, 32 Scotstown Road, Bridge of Don, Aberdeen, AB23 8HG.
These financial statements have been prepared in accordance with applicable accounting standards and the Statement of Recommended Practice Accounting and Reporting by Charities, preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), and comply with the Companies Act 2006, the Charities and Trustees Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2005 (as amended).
The charitable company meets the definition of a public benefit entity under the FRS 102.
The financial statements are prepared in sterling, the functional currency of the Charitable company. Monetary amounts in these financial statements are rounded to the nearest £1.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The trustees have prepared forecasts and have made due and careful enquiry and are of the opinion that the charitable company has adequate working capital to execute its operations over the next 12 months post signing of the financial statements. The trustees, therefore, have made an informed judgement, at the time of approving the financial statements, that there is a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. As a result, the trustees have continued to adopt the going concern basis of accounting in preparing the annual financial statements.
The continued development of the Finance & Investment (F&I) sub-committee indicates the focus that the trustees are placing on striving to ensure the charitable company’s finances are given increased attention and care, both with regard to making best use of our existing funds and also looking to align the future delivery and growth of the organisation with realistic and achievable forecasting. The approach of utilising different scenarios in the forecasting allows consideration of the best/worst case scenarios and should enable these to be planned for, or mitigated, respectively. Given the current economic climate and the high interest rates and inflation levels, this will continue to be a key focus for the organisation, and something which the trustees will continue to carefully manage.
Unrestricted funds consist of the general fund and designated funds. Unrestricted funds are available for use at the discretion of the trustees in furtherance of the purposes of the charitable company.
Designated funds are unrestricted funds earmarked by the trustees for specific purposes. They are not in any way restricted and any surplus or deficit will be transferred to/from the general fund when the designated fund is closed.
Restricted funds are subjected to restrictions on their expenditure imposed by the donor. Expenditure which meets these criteria is charged to the fund, together with a fair allocation of management and support costs.
All income is included in the statement of financial activities when entitlement has passed to the charitable company, it is probable that the economic benefits associated with the transaction will flow to the charitable company and the amount can be reliably measured.
Income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
Legacy income is recognised when receipt is probable and entitlement is established.
Income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.
Income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates.
Expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.
Expenditure on charitable activities includes all costs incurred by a charitable company in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charitable company apportioned to charitable activities.
All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.
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.
At each reporting end date, the charitable company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
Cash and cash equivalents include cash in hand, deposits held at call with banks, and cash held on deposit for investments.
The charitable company 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 charitable company's balance sheet when the charitable company 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 charitable company’s contractual obligations expire or are discharged or cancelled.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
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 company 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 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. 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.
The listed investments held by the charitable company are administered by the charitable company’s investment advisors CCLA. Investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. The transaction price, transaction costs and fair value of the investments are based upon the regular investment portfolio reports obtained from the investment advisors.
Credit control is an important function which requires assessment, on an ongoing basis, of the recoverability of amounts due from debtors. Where recovery is in doubt, the trustees will adequately provide against this specific debt and will arrive at such conclusions based on the knowledge of the debtor and their “ability to pay”. The trustees adopt a prudent approach to credit control.
Trustees estimate the requirements for accruals using post year end information and information available from detailed budgets. This identifies costs that are expected to be incurred for services provided by other parties. Accruals are only released when there is a reasonable expectation that these costs will not be invoiced in the future.
Gifts in kind are measured at fair value on recognition, which is the expected cost of the service or goods received if the service or goods were to be paid for.
Contract Income
Trust & Foundation Grants
Public Sector Grants
Service Charge Income
GCC contract charge
Other
Bank interest receivable
Other staff costs
Other expenses
Subscriptions
Heat and light
Rates and water
Rent
IT software and support costs
Legal and professional fees
Gifts in kind
Other staff costs
Equipment lease and maintenance costs
Groceries
Cleaning and other office costs
The average monthly number of employees during the year was:
The remuneration of key management personnel was as follows:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
Other price risk
Other price risk arises principally in relation to equities held. The charitable company manages this exposure to other price risk by constructing a diverse portfolio of investments across various markets.
In November 2023, a loan of £29,300 was received from Social Investment Scotland in relation to the purchase of electric vehicles. The loan has an interest rate of 3% and is repayable over 48 months from the date of drawdown.
Deferred income is included in the financial statements as follows:
Deferred income relates to amounts received in the year but relating to projects and contractual obligations specified to take place post year end or that have specified performance conditions not yet met.
The charitable company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charitable company 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.
Purpose of restricted funds:
The restricted funds provide residential and community services in the following ways:
Wernham House - Offers an intensive support services for adults with24/7 multiple and complex care needs. The service focuses on harm reduction and development of independent living skills.
Direct Access - Providing a welcoming space to support people in Aberdeen who are experiencing poverty, abuse, discrimination, or exclusion, ensuring they are supported to access the services they need as quickly and safely as possible through appropriate pathways.
Justice Support - Offering support for improved health and wellbeing, recovery, integration, and employability across justice and housing support needs.
Settled Housing Support - Offering support for improved health and wellbeing, recovery, integration, and employability across justice and housing support needs.
Care Choices - Our care at home provides choice to empower adults with long-term support needs to remain within their home and local community.
Ending Violence and Abuse Aberdeen (EVAA) - Empowering survivors to take back control of their lives and recover a positive future in which they can flourish, free from discrimination.
Rise - Our care at home provides choice to empower adults with long-term support needs to remain within their home and local community.
Peer Support - The service provided support and integration for vulnerable individuals helping them to integrate into their Communities, by establishing networks of peer groups to provide practical and emotional support and advice.
Strength for Tomorrow - Empowering survivors to take back control of their lives and recover a positive future in which they can flourish, free from discrimination.
GCC recharges - This relates to the costs recharged to the Granite Care Consortium.
Social Investment Scotland (SIS) - Funding provided for the purpose of purchasing two electric vehicles.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
A net transfer of £287,542 (2024 - £315,699) was made during the year between the unrestricted and restricted funds to cover project overspends and underspends (in which the conditions of the award have been satisfied and no funds are due to be returned to the grant provider).
At the reporting end date the charitable company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
As part of the organisation’s membership of Granite Care Consortium Limited, which was incorporated on 7 October 2020, there is a requirement to appoint someone on the board of that organisation. During the year under review, a member of the Leadership team and by association the key management team of the charitable company, was a director of GCC. The following transactions took place with GCC: