REGISTERED COMPANY NUMBER: SC115949 (Scotland)

REGISTERED CHARITY NUMBER: SC007486

Report of the Trustees and

Financial Statements

for the Year Ended 31 March 2025

for

McFarlane Trust Ltd.

Page

Report of the Trustees

1

to

6

Report of the Independent Auditors

7

to

9

Statement of Financial Activities

10

Statement of Financial Position

11

Statement of Cash Flows

12

Notes to the Statement of Cash Flows

13

Notes to the Financial Statements

14

to

24

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2025. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

The financial statements comply with the Charities and Trustees Investments (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS102).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The principal objective of the charity is the provision of accommodation and care in the community for adults with complex learning disabilities.

The charity has in place general and project management that are ever mindful of opportunities to improve all aspects of care support to all the people supported to integrate them into their communities and to provide them with life enhancing opportunities.

Our strategy is to grow organically and to continue to increase our capacity in respect of accommodation, care and support, without affecting the high standard of service we provide.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

As a social care provider, we recognise the value of investing in our employees and that the success and sustainability of any organisation depends on a comprehensive Learning and Development (L&D) programme. Our L&D programme continues and aims to create a productive team who are motivated and committed to the organisation. We believe that a culture of learning and personal development supported by effective training will make staff feel valued and confident in their job role, as well as investing in the future of the organisation.

We received an inspection visit from the Care Inspectorate in April 2024 and were given a rating of grade 5 (very good). This is not only good for highlighting that we have a well trained staff team and that our people are well supported and cared for, it is also an endorsement from our governing body. This endorsement helps us keep our current council contracts and provides us avenues into picking up additional services.

This year we were required to complete two tenders for new contracts with Renfrewshire Council and the Scotland Excel Flexible Framework. We were successful in both and this means we now have contracts for services with Renfrewshire Council for the next 4-7 years, and with Scotland Excel for 3 years. Scotland Excel Flexible Framework covers our services with East Renfrewshire and Inverclyde councils.

As part of our new contract with Renfrewshire Council it was a requirement that we attained a Cyber Essentials Plus Accreditation within 1 year of our contract start date. This involved us engaging with our IT support provider to review our current cyber security state and identify work required to allow us to pass the accreditation. There was a lot of effort involved across all of our services and staff teams, however we were able to gain our accreditation within 9 months. Budgets have had to be reworked to allow additional funds to be allocated towards our IT costs, as not only was there a high expense over this year to get us through the accreditation, ongoing costs have had to increase to keep us compliant under the accreditation which requires to be renewed annually.

We were offered 3 additional single tenancy services in the year by East Renfrewshire Council. These were geographically aligned with services that we already provide in East Renfrewshire. This made it easier to build these services into our service provision structure without affecting our service provision at nearby services. These have so far proven successful and increases our service provision in East Renfrewshire by around 17%.

We continue with our property improvement and maintenance programme. An example of the major works completed during the year are:

- New kitchen at Gartmore Road

- New front and back door at Gartmore Road

- New kitchen at Amochrie Drive

- New paving laid across back garden area at Craw Road

- Refurbishment of front ramp at Craw Road

- New kitchen flooring at Luckiesfauld

- Various internal decorating across all of our properties

We also completed our 5 year business plan this year. This had been in the process of being prepared over the course of the last two years and we are proud to set out our plans for the next few years. The Business plan can be found on our website at www.mcfarlanetrust.org

The trustees continue to develop strong governance and leadership, to promote the organisation's aims and outcomes and to develop sustainable services underpinned by clear strategic intentions.

The number of trustees currently sits at six. We continue to seek an additional trustee to join the board.

Our strong senior management team, led by the Finance and Operations Directors, provide a professional and strategic based approach to delivering high quality services. Our team are trained to seek and respond to new opportunities and to diversify in any way which may improve the services we provide.

The charity carries surpluses earmarked for specific purposes in future years.

FINANCIAL REVIEW

Principal funding sources

Local authorities continue to be our main source of funding, most notably Renfrewshire and East Renfrewshire Councils.

Investment policy and objectives

Under the Memorandum and Articles of Association, the charitable company has the power to invest in any way the trustees wish. The trustees, having regard to the liquidity requirements of running the projects, have operated a policy of retaining funds in low risk investments, such as interest bearing bank accounts.

Reserves policy

The trustees have established a policy whereby they consider that sufficient funds will be retained to meet short term cashflow in the event of delayed receipts of regular cash from funding bodies.

The total unrestricted reserves at 31 March 2025 was £1,339,526 comprising of:-

Designated funds - £484,463

- £14,864 - house donations funds, to be spent on individual houses;

- £115,374 - home improvement funds

- £66,131 - voids provisions

- £288,094 - property purchase funds

together with other unrestricted funds of £855,063 representing the free funds of the charity.

The trustees are prohibited from making any distribution under the Memorandum and Articles of Association

Going concern

The trustees are satisfied with the results for the year. They will continue to monitor expenditure and assets with a view to ensuring financial affairs are conducted in a prudent and effective manner. They do not envisage any concerns regarding the future of the charity, which has the support of its bankers, staff, tenants and their families.

FUTURE PLANS

It has been decided that we need to look at a restructure of our management team before we purchase any new properties, as our current managers are at full capacity with their current service portfolios. Since we are not currently using our property fund we have deposited a lump sum into a 6 month fixed savings account. These funds will be available again within the next year to allow a cash purchase of a property, if we can agree and organise a suitable management structure, and also if the right property comes on the market. We would then be in a position to expand our current provision of accommodation and support to additional users.

We have also needed to review our staffing structures at each of our services with a view to making wage cost savings. There was a deficit of wage funding of £114,000 in the year to March 2025, although £60,000 of this was one off back payments of Sleepover costs. Employer NI costs are increasing in the year to March 2026 and we estimate a potential additional wage cost of £90,000 with no additional funding being provided to cover this. There are challenges with balancing the funding we receive for staff wages and our overall wage bill, there is no doubt this is going to become more of a challenge in the coming year. We did uplift our rates as part of our tenders which included the element of our rate related to staff wage funding. This should bring in additional wage funding that will help offset the Employer NI cost increase. It is important that while we aim to reduce our wage costs across each of our services, that we do not reduce the high levels of support that we have always given our people.

As our services have continued to grow so too has our staff team. Increases in staff numbers inevitably brings additional staff challenges and issues. These issues were becoming more of a burden for our directors to deal with, therefore we decided that it was the right time to bring in an HR Manager to take on the responsibility for staff and bridge the gap to senior management. Our new HR Manager started on 30 June 2025 and so far has settled in well at Head Office.

Our Policies, Procedures and Guidelines have all been reviewed and updated in 2025. The HR Manager will take over this duty when the review comes around again in 2027.

Finally, McFarlane Trust turns 30 this year and we are having an Anniversary party in November 2025. Invites have gone out to people we support and their families and friends, along with all current staff and some prior employees.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

McFarlane Trust Limited, operating under its Memorandum and Articles of Association, has conducted charitable activities in the United Kingdom since 1988. The board of trustees is responsible for the overall governance of the company.

Trustees

In accordance with the charitable company's Memorandums and Articles of Association, the board of trustees must have at least three members.Trustees are selected to bring the varied range of skills and experience necessary to provide governance to key management personnel.

Organisation

The board of trustees has overall responsibility for the strategic direction and administration of the charitable company. Day to day operations, the committee and decision-making processes and the business plan are managed by the director of finance and the director of operations.

Induction and training of new trustees

New trustees are briefed on their legal obligations under charity and company law, the Scottish Charity Regulator's guidance on trustee duties, and informed of the content of the Memorandum and Articles of Association, the committee and decision-making processes, the business plan and recent financial performance of the charity. During the briefing they meet key employees and other trustees. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.

Key management remuneration

All trustees give of their time freely and do not receive remuneration for their role. The appointment of key management personnel are remunerated commensurate with their role within the organisation. The remuneration of all staff is dependent on the skills, experience and qualifications they bring to their role and is matched as far as possible with local market levels.

Risk management

The trustees have a risk management strategy which comprises:

-

an annual review of the principal risks and uncertainties that the charity faces;

-

the establishment of policies, systems and procedures to mitigate those risks identified in the annual review and;

-

the implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise.

The main risk, as is inherent in any organisation relying on government funding, is the ability to adapt and diversify in line with current political policies.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

SC115949 (Scotland)

Registered Charity number

SC007486

Registered office

Suite 902 Mile End Mill

12 Seedhill Road

Paisley

PA1 1JS

Trustees

W A Paterson

Miss J Robson

D G Haggart

Mrs A G Shanks

Mrs E Stuart

Ms M McLean

Auditors

O'Haras Accountants Limited (Statutory Auditor)

Radleigh House

1 Golf Road

Clarkston

Glasgow

G76 7HU

Bankers

Bank of Scotland

8 Lochside Avenue

Edinburgh

EH12 9DJ

FUNDS HELD AS CUSTODIAN FOR OTHERS

The charity acts as custodian of certain service users' personal bank accounts. Procedures and checks are in place to safeguard such funds and to ensure these are only used for such purposes.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of McFarlane Trust Limited for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

-

select suitable accounting policies and then apply them consistently;

-

observe the methods and principles in the Charity SORP;

-

make judgements and estimates that are reasonable and prudent;

-

state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

-

there is no relevant audit information of which the charitable company's auditors are unaware; and

-

the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

AUDITORS

The auditors, O'Haras Accountants Limited (Statutory Auditor), will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on 10 December 2025 and signed on its behalf by:

D G Haggart - Trustee

Opinion

We have audited the financial statements of McFarlane Trust Ltd. (the 'charitable company') for the year ended 31 March 2025 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In our opinion the financial statements:

-	give a true and fair view of the state of the charitable company's affairs as at 31 March 2025 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; and

-	have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 8 of the Charities Accounts (Scotland) Regulations 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Trustees has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006; the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities and Trustees Investment (Scotland) Act 2005 requires us to report to you if, in our opinion:

-

the charitable company has not kept proper and adequate accounting records; or

-

the financial statements are not in agreement with the accounting records; or

-

certain disclosures of trustees' remuneration specified by law are not made; or

-

we have not received all the information and explanations we require for our audit; or

-

the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

- We gained an understanding of the legal and regulatory framework applicable to the charity and the care sector in which it operates. We made enquiries of management as to whether there were any known or suspected instances of non-compliance with laws and regulations or fraud, and reviewed available board minutes for any indication of such matters.

- We gained an understanding of management's internal controls designed to prevent and detect irregularities in their day-to-day operations.

- We considered laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006, the Charities Accounts (Scotland Regulations 2006 (as amended), the Charities and Trustees Investment (Scotland) Act 2005 and the Charities SORP. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement components. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of relevant third parties.Part of these tests also included considering the regulations of the Office of Scottish Charity Regulator and other regulations like GDPR, anti money laundering, health and safety and the care sector.

- We considered how fraud might occur in this company and designed our tests accordingly.

- As in all audits, we also addressed the risk of management override of internal controls, including reviewing journals, reviewing for any large or unusual transactions, looking for evidence of window dressing and any transactions outwith the charity's normal operations, focusing on any accounting estimates and judgements and any undisclosed related party transactions and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members and the trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

John O'Hara (Senior Statutory Auditor)

for and on behalf of O'Haras Accountants Limited (Statutory Auditor)

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

Radleigh House

1 Golf Road

Clarkston

Glasgow

G76 7HU

10 December 2025

2025

2024

Unrestricted

Restricted

Total

Total

funds

fund

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

1,283

-

1,283

9,600

Charitable activities

4

Charitable activity

3,658,811

-

3,658,811

3,250,915

Investment income

3

10,889

-

10,889

-

Total

3,670,983

-

3,670,983

3,260,515

EXPENDITURE ON

Charitable activities

5

Charitable activity

3,667,687

9,600

3,677,287

3,191,810

NET INCOME/(EXPENDITURE)

3,296

(9,600

)

(6,304

)

68,705

RECONCILIATION OF FUNDS

Total funds brought forward

1,336,230

9,600

1,345,830

1,277,125

TOTAL FUNDS CARRIED FORWARD

1,339,526

-

1,339,526

1,345,830

2025

2024

Notes

£

£

FIXED ASSETS

Tangible assets

13

1,038,346

1,072,842

CURRENT ASSETS

Debtors

14

132,742

105,228

Cash at bank

916,874

898,042

1,049,616

1,003,270

CREDITORS

Amounts falling due within one year

15

(196,141

)

(164,659

)

NET CURRENT ASSETS

853,475

838,611

TOTAL ASSETS LESS CURRENT LIABILITIES

1,891,821

1,911,453

CREDITORS

Amounts falling due after more than one year

16

(552,295

)

(565,623

)

NET ASSETS

1,339,526

1,345,830

FUNDS

21

Unrestricted funds

1,339,526

1,336,230

Restricted funds

-

9,600

TOTAL FUNDS

1,339,526

1,345,830

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 10 December 2025 and were signed on its behalf by:

D G Haggart - Trustee

J Robson - Trustee

Cash flows from operating activities

Cash generated from operations

1

70,166

122,321

Interest paid

(48,895

)

(49,483

)

Net cash provided by operating activities

21,271

72,838

Cash flows from investing activities

Purchase of tangible fixed assets

-

(15,833

)

Interest received

10,889

-

Net cash provided by/(used in) investing activities

10,889

(15,833

)

Cash flows from financing activities

Loan repayments in year

(13,328

)

(12,072

)

Net cash used in financing activities

(13,328

)

(12,072

)

Change in cash and cash equivalents in the reporting period

18,832

44,933

Cash and cash equivalents at the beginning of the reporting period

898,042

853,109

Cash and cash equivalents at the end of the reporting period

916,874

898,042

1.	RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

2025

2024

£

£

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

(6,304

)

68,705

Adjustments for:

Depreciation charges

34,496

36,964

Interest received

(10,889

)

-

Interest paid

48,895

49,483

Increase in debtors

(27,514

)

(63,124

)

Increase in creditors

31,482

30,293

Net cash provided by operations

70,166

122,321

2.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank

898,042

18,832

916,874

898,042

18,832

916,874

Debt

Debts falling due within 1 year

(15,000

)

-

(15,000

)

Debts falling due after 1 year

(565,623

)

13,328

(552,295

)

(580,623

)

13,328

(567,295

)

Total

317,419

32,160

349,579

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The charity meets the definition of a public benefit entity under FRS102. The charity has availed itself of paragraph 3 (3) of Schedule 4 of the Companies Act 2006 and adapted the Companies Act formats to reflect the special nature of the charity's activities.

Going concern

The trustees continue to be satisfied that the charitable company has adequate resources to continue in operation for the next 12 months. Consequently, the trustees consider it appropriate to prepare the financial statements on a going concern basis.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for income and expenditure during the year. However, the nature of estimation means that actual outcomes could differ from those 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements include estimation of any impairment of the property values currently included in the financial statements including the estimation of their useful life and future economic benefits.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

The charity's main source of income is from the provision of residential care in the community for adults with profound complex learning disabilities.

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

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources.

- Support costs comprises of overhead costs to support the charity. finance costs and accountancy and auditors remuneration.

- Direct costs of charitable activities comprise of costs incurred by the charity in the delivery of its day to day activities and services.

- Other costs relate to one off expenditure.

Allocation and apportionment of costs

All costs are allocated to one activity.

Tangible fixed assets

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

Freehold property

- 2% on cost

Fixtures and fittings

- 15% on reducing balance

Motor vehicles

- 25% on reducing balance

Impairment of other tangible fixed assets

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately.

Taxation

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

Fund accounting

Unrestricted funds comprise donations and other incoming resources received or generated for charitable purposes. They are available for use at the discretion of the directors in furtherance of the company's general charitable objectives.

Designated funds comprise of unrestricted funds that have been set aside by the trustees for a particular purpose.

Restricted funds are created when donations and other incoming resources are made either for a particular house or purpose, the use of which is restricted to that house or purpose. Expenditure is charged to the Statement of Financial Activities when incurred.

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

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Debtors

Trade and other debtors are recognised at the settlement amount due less impairment losses for bad and doubtful debts.

Cash at bank and in hand

Cash at bank and cash in hand includes cash for the various homes run by the charity. There is an overdraft facility in place if needed.

Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any discounts due.

2.	DONATIONS AND LEGACIES

2025

2024

£

£

Donations

1,283

-

Grants

-

9,600

1,283

9,600

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

2025

2024

£

£

Scottish Social Services Council (restricted)

-

9,600

3.	INVESTMENT INCOME

2025

2024

£

£

Deposit account interest

10,889

-

4.	INCOME FROM CHARITABLE ACTIVITIES

2025

2024

Activity

£

£

Local Authority grants

Charitable activity

3,140,861

2,761,763

Housing benefits

Charitable activity

517,950

489,152

3,658,811

3,250,915

5.	CHARITABLE ACTIVITIES COSTS

Direct

Support

Costs (see

costs (see

note 6)

note 7)

Totals

£

£

£

Charitable activity

3,585,290

91,997

3,677,287

6.	DIRECT COSTS OF CHARITABLE ACTIVITIES

Direct costs comprise of:

£

Salary and pension costs

3,221,503

Property & overhead costs

355,928

Registration costs

7,859

3,585,290

7.	SUPPORT COSTS

Support costs comprise of:

£

Overhead costs to support the charity

34,702

Finance costs

48,895

Accountancy costs and auditors remuneration

8,400

91,997

8.

OTHER

2025

2024

£

£

Support costs

91,997

94,247

9.	NET INCOME/(EXPENDITURE)

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

2025

2024

£

£

Auditors' remuneration

5,000

4,800

Auditors' remuneration for non audit work

3,400

3,000

Depreciation - owned assets

34,496

36,962

10.	TRUSTEES' REMUNERATION AND BENEFITS

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

Trustees' expenses

No trustees received expenses during the year.

11.	STAFF COSTS

2025

2024

£

£

Wages and salaries

2,836,620

2,445,279

Social security costs

246,506

198,600

Other pension costs

136,690

114,210

3,219,816

2,758,089

Key management personnel

During the year, two employees provided key management personnel roles within the charity. The benefits received were as follows:

31/3/25

31/3/24

£

£

Key managements' salaries

112,828

107,299

Key managements' social security

13,285

12,243

Key managements' pensions paid

27,378

26,623

153,491

146,165

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

2025

2024

Administration

4

3

Care staff

127

116

131

119

No employees received emoluments in excess of £60,000.

12.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

funds

fund

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

-

9,600

9,600

Charitable activities

Charitable activity

3,250,915

-

3,250,915

Total

3,250,915

9,600

3,260,515

EXPENDITURE ON

Charitable activities

Charitable activity

3,182,429

9,381

3,191,810

NET INCOME

68,486

219

68,705

RECONCILIATION OF FUNDS

Total funds brought forward

1,267,744

9,381

1,277,125

TOTAL FUNDS CARRIED FORWARD

1,336,230

9,600

1,345,830