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).
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.
We continue to provide a wide range of flexible childcare services across the geographically diverse Highlands. Changes in funding and commissioning models has meant a loss of some services over the past year although we are often approached to open new ones to meet increasing demand especially for School Aged Childcare (SAC). We continue to enjoy high levels of parental satisfaction with our services.
Unfortunately we have had to close our popular Tain based TRACC service over the year due to our inability to meet care Inspectorate expectation and registration requirements. We worked closely with other providers to ensure parents were able to access alternative provision if required.
We have worked closely with Scottish Government over the year to explore a new definition for school aged childcare that recognises the unique qualities and provision and we look forward to the outcome into 2025 and beyond.
We continue to seek new ways to provide rurally based childcare services and the development of our Single Care Model which includes flexibly provided school aged childcare is gathering momentum and our CEX presented on it at SOSCNs Conference as well as to other audiences and forums. We look forward to developing this further into 2025 onwards in partnership with agencies and communities.
At the end of the financial year the company had general unrestricted funds of £50,265 (2024 - £68,737) having recorded a deficit for the year of £17,458 (2024 - £12,838). A designated redundancy reserve of £9,721 (2024 - £8,707) is also held at the year end.
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 expenditure which includes redundancy costs. 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 OOSC 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, communities and wider sector. We also seek to build 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.
Continuing challenges with recruitment, increasing expectations and regulations on regulated services, and the expansion and growth of unregulated School Aged Childcare services are all contributing to concerns about ongoing viability of the sector especially in rural areas. It must also be recognised that quality childcare services are not just about qualifications, but also about having the essential time, mentoring and the opportunity for self-reflection, peer dialogue and learning for our staff. Therefore, we must build a new system of school aged childcare that has the child, families and staff at the centre.
Our focus will be on collaboration and innovation to effect real change especially in remote and rural communities. We will continue to work with families, communities and partners to develop place based integrated and intergenerational solutions, offering new ways of delivery that meet our socially responsible objectives. We will continue to evaluate our services including our communications and seek to pivot as needed to reflect new platforms and medias. We will continue to explore and develop our understanding of new and emerging technologies balancing innovation with risk and quality.
Ensuring our staff are valued and their professionalism and skills recognised and fairly rewarded is key to our future sustainability and growth. However, the current gap not only in pay but also in terms and conditions between the 3rd sector and public agency staff must not be allowed to widen and indeed must be closed, as should that between childcare staff and those working in hospitality, retail and other businesses. Our professional staff are our greatest asset and resource and we will continue to find ways to show how much we value them and continue to develop benefits that allow us to recognise their hard work and dedication.
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 is Memorandum and Articles of Association.
CALA Out of School Care (OOSC) ) 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 also in attendance.
Thanks to ongoing work, there has been an increase in the number of Directors which supports the Board having the necessary skills to support the development and sustainability of the charity into the future as it meets the many challenges and opportunities ahead.
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:
The 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 trustees, 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 Out of School Care 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 are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
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 14.
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 Out of School Care 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.
Out of school care
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.
A transfer has been made from the general fund to the redundancy reserve to reflect an increase in the amount that would be due in the event of redundancies being issued.
During the year the charity entered into the following transactions with related parties:
During the period the charity had income of £10,945 (2024 - £12,585) and expenditure of £18,495 (2024 - £34,396) arising from their relationship with other charities within the Care and Learning Alliance group. £10,550 (2024 - £12,274) was owed to these charities and £8,624 (2024 - £8,783) 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 Learning Alliance group comprising of the following charities who share a Board of Trustees:
Care and Learning 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.