The trustees 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 charity'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 objectives of the charity are to:
To promote, maintain, improve and advance education and social developments of children, the parents, carers and families of such children and other appropriate persons with emphasis on play experience.
To encourage study of the needs and problems of families and children.
To stimulate and educate the public interest in this and other related educational and social fields.
To encourage the formation, maintenance and development of playgroups, parent and toddler groups, under 5 groups, day care and education schemes.
To encourage appropriate parental involvement within these aforementioned groups including the services of home-visiting support and self-help groups.
Strategic report
The following sections for achievements and performance and financial review form the strategic report of the company.
Strategic overview
Our core activities and work for 2024/25 centred on ensuring we met the key values and aims of our Strategic Plan for 2022-2026. We plan to develop a new Strategic Plan for 2026 onwards.
Vision
We deliver high quality services that nurture and support children and families.
Children, families and our team are at the heart of all we do.
4 key aims
We will provide high quality services for children and families.
Children and families have access to inclusive services.
Our workforce is professional, skilled and valued.
We are a dynamic, responsive, and sustainable organisation.
Our work continues to focus on outcomes that benefit the children and families of the Highlands as well as supporting our vitally important staff. We built on the Key Performance Indicators (KPI) for 2023-24 that had been developed and continued to test the new way of capturing how our work is joined up, evaluated and evidencing our improvement and outcomes. They also ensured our Board had full scrutiny and oversight of our work and has the assurance it needs that we are meeting our Strategic Aims.
There is a continued challenge across Scotland with sector wide recruitment and retention creating vacancies needing filled but it can be extra difficult especially in rural Highland. Therefore, CALA Staffbank has been very busy again this year supporting settings across Highland to meet their staffing requirements.
CALA Staffbank also provides a springboard to new job opportunities offering adults and young people a pathway to undertake a more vocational rather than an academic route to a career. The Staffbank plays a vital role in supporting people entering the Early Learning and Childcare (ELC) and providing a positive pathway into the sector as well as flexible work that meets various needs.
Over past year, we had an average of 63 on our staffbank. We had 4121 requests for cover and met 62% of those. Across the year we had 6 new clients taking our total to 46.
We do have an issue with more rural provision where we may take on an RCP but because of the sparsity there is not enough work for them to stay on Staffbank. However, when rural providers do need cover, we then do not have the RCPs so we need to understand more about how to support our more rural clients.
Due to previous investment from our reserves, we have been taking forward some focussed work on changing and developing the Staffbank Model, which continue to develop and provide new services and opportunities over the coming year and beyond. We are seeing the benefits with increasing people returning to work with our staffbank which reflects positivity on how it is run and the flexibility of the work. Most of the returning workers have either lost jobs due to centre closures or their family dynamics have changed meaning they need a better work / life balance than they had in their full time hours.
Many Staffbank RCPs move into work within the childcare sector securing permanent positions across a range of providers and the experience and opportunities they have had on Staffbank is recognised by them as extremely valuable.
"Thank you for all the support and training that was available to me with Staffbank"
RCP Exit Questionnaire
"Enjoyed the work however not enough in their area to justify staying on the bank"
RCP Exit Questionnaire
Wishing you and the team all the best moving forward and thank you for all that you have done for me during my time with you."
RCP Resignation
At the end of the financial year the company had unrestricted funds of £25,986 (2024 - £29,497) having recorded a deficit of £3,511 (2024 - surplus of £77).
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to six month’s committed expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
As we move into 2025/26 and beyond, CALA Staffbank will continue to champion and provide solutions in a holistic and collaborative way, working across different agencies, communities and organisations to reflect the realities and challenges in rural areas as well as in the sector and country as a whole. Autumn 2025 onwards will also see the development of our new Strategic Plan to guide our work over comings years.
As always, our strength relies on our collaborative and trusted relationships with families and communities as well as key stakeholders Highland Council, NHS Highland, Highland Third Sector Interface (TSI), Inspiring Scotland, Highlands and Islands Enterprise (HIE) and Scottish Government, members and wider sector.
We will continue to explore further development of the staffbank model to ensure gaps in quality flexible staffing are filled for the benefit of children and their families and also provide continued and new opportunities to support a diverse workforce. We will need to carefully monitor the service to ensure sustainability and best value. Recruitment is a challenge across whole sector and we will ensure that the vital role of RCP and the benefit to the staff members are promoted and highlighted. The continuing inequity between third/private sector and public sector pay rates can make it difficult to recruit and retain staff as well as making the sector feel less valued. CALA will continue to lobby for greater pay and conditions parity across the sector. We believe staff should enjoy pay rates which reflect the value of highly skilled and professional staff.
CALA continues to value and nurture current strong partnerships while also building new relationships and collaborations locally, nationally and internationally, supporting Scottish Government’s key priorities and the United Nations Convention on the Rights of the Child (UNCRC) principles putting children’s rights at heart of all we do. Our work with new Whole Family Wellbeing programme is exciting and helps us meet our passionate belief that service must be connected in a child and family centred way to maximise support and minimise duplications or gaps, supporting the reduction in poverty especially child poverty and rural deprivation. We also know that quality, trusted relationships, early support and intervention for parents and children is key to ensuring both the child and the whole families thrives. We will work to develop these relationships, services and resources in partnership across Highland and beyond.
We will continue to innovate to see if the Staffbank model can be further develop to meet unique needs of remote and rural areas and scrutinise our day to day operations will ensure that impacts from clients changing needs are planned for so we can sustain this vitally important and valued service.
CALA are extremely fortunate to have a hugely supportive, expert volunteer Board who help guide all we do and provide advice, support, leadership and strong governance and accountability. We have a truly dedicated, enthusiastic and professional staff team, without whom we could not deliver to the high standards we do day in day out, at times in face of huge challenges. This TeamCALA ethos is what gives the charity its strength, integrity and authenticity, allowing us to seek innovative solutions in changing times.
CALA will continue to meet the diverse needs of children, families and communities in a Childrens Rights based solution focussed and inclusive place based way and ensure the wellbeing and empowerment of the child, family and communities remains at the heart of all of our work.
The charity is a company limited by guarantee and controlled by its Memorandum and Articles of Association.
CALA Staffbank is part of the group accounting structure of CALA group together which supports the cross company working and the articulation of the high level purposes of the activities, services and companies.
The Board meets 4 times a year with the Chief Executive to review company information, the current financial position and discuss in detail senior management decisions that are required. The day to day running of the company is devolved to the Chief Executive as company secretary. The Finance and Audit sub-committee meets in between the Board meetings and the Head of Finance and HR is in attendance.
Thanks to ongoing work, there has been an increase in the number of Directors so the Board has the necessary skills to support the development and sustainability of the charity into the future, meeting the many challenges and opportunities ahead. Ongoing skills analysis will help identify new Directors.
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:
Trustees will be appointed from time to time due to their skills or interest or as other trustees resign. At the AGM, one third of the directors, or the nearest to one third, are required to retire by rotation.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The trustees, who are also the directors of CALA Staffbank 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 which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees' report was approved by the Board of Trustees.
I report on the financial statements of the charity for the year ended 31 March 2025, which are set out on pages 6 to 13.
It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 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 the course of my examination, no matter has come to my attention
1. which gives me reasonable cause to believe that in any material respect the requirements:
to keep accounting records in accordance with Section 44(1)(a) of the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 4 of the Charities Accounts (Scotland) Regulations 2006, and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the Charities Accounts (Scotland) Regulations 2006
have not been met, or
2. 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.
CALA Staffbank is a private company limited by guarantee incorporated in Scotland. The registered office is 40 Longman Drive, Inverness, IV1 1SU.
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The charity 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 charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees 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 trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Bad debts
Staff provision
The average monthly number of employees during the year was:
No remuneration was paid to key management personnel.
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The 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.
During the year the charity entered into the following transactions with related parties:
During the period the charity had income of £149,113 (2024 - £108,923) and expenditure of £2,083 (2024 - £1,670) arising from their relationship with other charities within the Care and Learning Alliance group. £18,170 (2024 - £18,103) was owed to these charities and £16,598 (2024 - £10,900) was owed by these charities at the period end. The charities are deemed to be related as they are all under control by the same board of trustees.
The charity is part of the Care and Leaming Alliance group comprising of the following charities who share a Board of Trustees:
• Care and Leaming Alliance
• CALA Direct Management Services
• CALA Integrated Services
• CALA Out of School Care
• CALA Staffbank
Care and Learning Alliance is the only undertaking for which consolidated financial statements of the charity are prepared. Copies of the Care and Learning Alliance financial statements may be requested from 40 Longman Drive, Inverness, IV1 1SU.
As the charity is a company limited by guarantee, the ultimate controlling party is considered to be the Board of Trustees.