The Directors present their annual report and financial statements 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 Memorandum and 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)" (effective 1 January 2019).
The principal objects of the charitable company, as set out in its memorandum, are as follows:
(a) To advance the education and training of persons wishing to specialise in vocational training for work with children, elderly persons and people with special needs by the provision, or assistance in the provision, of relevant vocational training and relevant training and education for relevant qualifications in the case and development of such children and adults through increasing opportunities, skills and recognition for those working, or wishing to work, in the caring professions and as a consequence of the above to relieve the suffering and distress, to further the health and to improve the conditions of life of the recipients of care services.
(b) To provide, or to assist in providing, vocational training and education in care activities to whomsoever requires such training to further their health and to improve their condition of life and work.
(1) Scottish Vocational Qualifications
(Social Services and Healthcare SVQ 2/3/4, PDA in HSC Supervision; Social Services (Children and Young People) SVQ 3/4)
Completions: 141 (142)
Early Leavers +3 months: 1 (37)
Achievement Rate: 99.3% (79%)
(2) Foundation Apprenticeship
Completions: 17 (9)
Early Leavers +3 months: 4 (2)
Achievement Rate: 82% (81%)
(3) Short Courses (Food Hygiene, First Aid, Epilepsy, Moving and Handling, other Social Care)
Courses Delivered: 141 (202)
Participants: 1192 (1578)
Our performance this year has remained strong. Feedback from both learners and employers continues to highlight the high quality of support provided by our assessors, trainers, and the wider Training for Care team. Having now fully settled into our new premises, we have been able to expand our delivery of taught classes for SVQ learners and Short Course participants, offering increased face-to-face support to enhance learning and development.
Training for Care has undergone a transformative year, with all departments achieving notable successes. As a result, we are pleased to report a surplus of approximately £10k (£42k), representing a decrease from the previous year.
SVQ performance has shown a slight reduction in completions; however, we achieved a significant decrease in early leavers, contributing to a 20.3% increase in our overall achievement rate. This improvement reflects the substantial effort invested in strengthening learner engagement and progression.
Our SDS Modern Apprenticeship (MA) programme was maintained throughout the contract year. However, challenges with our Contract and Business Coordinator impacted our ability to meet the originally agreed targets. While we began the year with an allocation of 98 places, we were required to return a proportion of these due to sustainability concerns, concluding the year with 83 registered places—a reduction from 107 in the previous year. The overall contract value was subsequently adjusted. Having reviewed our systems and processes and with a new contract manager in place, significant progress has been made to stabilise the programme and ensure targets are met for 2025/26.
We recorded 84 MA completions in 2024/25 and saw a reduction in leavers, down to 104 from 137 the previous year. Our achievement rate increased to 80.8%, which is a highly positive development. We have continued our engagement in Employability programmes in partnership with Capital City Partnership, delivering 2–3-week Academies in Health and Social Care and Early Learning and Childcare. These programmes support unemployed individuals of all ages, providing sector-specific training, employability skills, and guaranteed job interviews. Training for Care contributed to the delivery of two to three of these Academies over the year, achieving strong outcomes in supporting participants into employment.
The Foundation Apprenticeship, delivered in partnership with East Lothian Council, continues to perform well, achieving an 82% success rate (11 full awards and 6-part awards). This year we successfully delivered a one-year programme alongside the traditional two-year pathway, strengthening the department's offer.
Short course enrolments showed an overall decrease relative to the previous year. While demand for Food Hygiene and First Aid has declined, we recorded increased uptake in Moving and Handling and First Aid for Mental Health. Participant feedback remains consistently positive, particularly recognising the expertise and enthusiasm of our trainers.
Income is mainly derived from training fees and amounted to £409,161 (2024: £476,090) in the year. Expenditure amounted to £399,878 a decrease of 8% compared to £434,248 in the previous year. This resulted in a surplus of £9,940 for the year compared to the surplus of £42,490 in the previous year. Total funds of £63,837 were carried forward at the year end comprising £3,892 in the fixed asset fund (corresponding to the net book value of fixed assets) and £59,945 in the general fund, representing the free reserves of the charity available for future expenditure.
Full details of income and expenditure during the year are shown in the Statement of Financial Activities (SOFA) on page 6 of the accompanying financial statements. Income and expenditure in the SOFA has been classified by activity in accordance with recommended practice for charity accounting. Alternative breakdowns of training income by source (note 3) and types of expenditure (notes 5-6) are given in the notes to the financial statements.
The free reserves of the charity, represented by the balance on the general fund, now stand at £63,837 which is equivalent to just less than 2 months of annual expenditure at present levels. The aim of the Directors it to increase reserves to a level equivalent to three months’ annual expenditure as an immediate cushion against any fall in income; however, this is against a situation of continuing downward pressure on government funding.
The Directors are aware of the major risks affecting the charity and consider that appropriate procedures are in place to mitigate those risks. The principal risk(s) identified are effects of changes in Scottish Government policy, planned and potential, to funding, performance measures and strategy direction in relation to employability and skills training as well as general economic uncertainty. Maintaining previous high levels of achievement/completion rates is proving a significant challenge. Directors also note the significant upward pressure on running costs, particularly after the balance sheet date and will continue to focus on mitigating the impact of these cost rises whilst maintaining service delivery as far as possible.
Our move to Norton Park has been highly positive for Training for Care. Being located alongside more than 20 charities has strengthened our networking opportunities and enabled us to forge valuable partnerships. This collaborative environment has also allowed us to contribute to the Voice of the Customer, and our Head of Service now participates in the Senior Executives Support Group.
The managed office facilities have been beneficial for all staff, allowing us to dedicate more time to organisational development and programme delivery. In addition, the building’s accessibility ensures that all staff, learners, and participants can fully engage in every area of the premises. The financial benefits of the move have also begun to emerge.
The outlook for the coming year is very encouraging. The value of our Modern Apprenticeship (MA) contract is expected to match the allocation set at the start of 2024/25. We begin the new year with 101 MAs in training and will continue to provide enhanced support where needed to ensure that learners achieve their qualifications—credentials that are vital to the childcare and social care sectors. With both sectors experiencing a critical shortage of qualified staff, we recognise the importance of this responsibility and remain fully committed to meeting it.
We are also looking forward to delivering another cohort of the Foundation Apprenticeship in partnership with East Lothian Council. This programme offers an important pathway for young people seeking employment in the childcare sector, and we have already tendered for two additional programmes.
In addition, we will continue our involvement in delivering the Health and Social Care Academies in partnership with Capital City Partnership, supporting local unemployed individuals into sustainable employment within the care sector.
In the year ahead, we aim to further develop our short course department. Our training team is enthusiastic and ready to expand this area of work, maintaining our commitment to providing essential and affordable training to the social care and childcare sectors.
Our commitment to high-quality delivery remains steadfast. With the social care and childcare sectors continuing to grow, we hope to seize upcoming opportunities, strengthen our financial reserves, and ensure the long-term success and sustainability of the organisation.
The charitable company is a company limited by guarantee with the liability of the members limited to £1 each. The company is governed by the terms of its Memorandum and Articles of Association and is registered as a Scottish charity.
The Directors who served during the year and up to the date of signature of the financial statements were:
Directors (who are also the trustees of the charity) are appointed to the Board at the Annual General Meeting (AGM). The Board is entitled to co-opt further Directors to fill casual vacancies during the year. Directors are interviewed and selected by the Board and induction training is provided by the management team.
None of the Directors has any beneficial interest in the company. All of the Directors are members of the company and guarantee to contribute £1 in the event of a winding up.
The Board of Directors agrees the overall policy and direction of the organisation, employs the staff and supervises the management of income and expenditure. Operational management is delegated to the senior manager and the management team with the support of administrative staff. Additional training services are supplied by self-employed professional associates.
The remuneration of the Senior Manager and the Management team is set by the Board.
The directors, who also act as trustees for the charitable activities of Training for Care, are responsible for preparing the Directors' 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 Directors 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 year.
In preparing these financial statements, the Directors are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The Directors 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.
The Directors' report was approved by the Board of Directors.
I report on the financial statements of the charitable company for the year ended 31 March 2025, which are set out on pages 6 to 15.
The charitable company’s directors, who also act as trustees for the charitable activities of Training for Care, are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investments (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The Directors consider that the audit requirement of Regulation 10(1)(a) to (c) of the 2006 Accounts Regulations does not apply. It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Act and to state whether particular matters have come to my attention.
My examination is carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations 2006. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the financial statements.
In connection with my examination, no matter has come to my attention:
to keep accounting records in accordance with section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;
to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Training for Care is a private company limited by guarantee incorporated in Scotland. The registered office is Norton Park, 57 Albion Road, Edinburgh, EH7 5QY.
The financial statements have been prepared in accordance with the charitable company's Memorandum and Articles of Assoiation, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charitable company is a Public Benefit Entity as defined by FRS 102.
The charitable company has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the Directors have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus the Directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the Directors in furtherance of their charitable objectives.
Training fees comprise claims made under the Skills Development Scotland Modern Apprenticeships and Employability Fund contracts for the year and other amounts invoiced which relate to work carried out during the year. Course fees received in advance are spread over the duration of the course with any amounts for future period included as prepaid income in creditors.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
Generally, assets costing less than £1,000 are not capitalised.
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).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The 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 company is recognised as a charity by the Inland Revenue and is exempt from corporation tax on its charitable activities.
The company is not registered for VAT and expenditure includes the cost of VAT where relevant.
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 charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
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.
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.
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:
There were no disclosable related party transactions during the year (2024 - none).