REGISTERED COMPANY NUMBER: SC265395 (Scotland)

REGISTERED CHARITY NUMBER: 035363

Report of the trustees and

Unaudited financial statements for the year ended 31 March 2026

For

Advocacy Highland

Page

Report of the trustees

1

to

4

Independent examiner's report

5

Statement of financial activities

6

Balance sheet

7

to

8

Notes to the financial statements

9

to

16

OBJECTIVES & ACTIVITIES

The principle objective of the organisation is to 'promote social justice and social inclusion by increasing the availability of independent advocacy and facilitating access to independent advocacy for the benefit of citizens in the Highland Region (where Highland Region is defined by local authority boundaries)'.

Advocacy Outcomes and Objectives

The advocacy service we provide is focused on achieving positive outcomes for the people we support, ensuring that their rights, views and wishes are heard, respected and considered in decisions that affect their lives.

Through independent advocacy, individuals are:

- Enabled to exercise greater control over their lives and communicate their views and preferences.

- Encouraged and empowered to speak up for themselves, either independently or with the support of an advocate.

- Supported to make informed choices and participate meaningfully in decision-making processes that affect them.

- Given opportunities to have their voices heard and considered by service providers, professionals and decision-makers.

- Assisted to understand and uphold their rights, promoting greater confidence, inclusion and self-determination.

REVIEW OF CURRENT ACTIVITIES AND FUTURE PLANS

During the year, the organisation's principal activity continued to be the provision of issue-based independent advocacy across the Highland region for people aged 16 and over with mental health conditions as defined under the Mental Health Act. This includes individuals with personality disorders, dementia, learning disabilities and autism spectrum disorders.

It has been another busy and productive year for Advocacy Highland. Demand for our services remained high throughout the year. Where individuals fell outside our remit, we continued to provide signposting and information to help them access appropriate support from other organisations.

In October 2024, NHS Highland agreed a two-year extension to our existing contract through to September 2026. While this provided welcomed stability and continuity of service, funding levels remained unchanged despite substantial increases in the costs associated with delivering and managing the service.

Recognising the increasing demand for advocacy support and the pressures this places on available resources, NHS Highland agreed our Referral Prioritisation Protocol in October 2024. This protocol defines the referrals we prioritise, and what referrals we cannot accept under current funding limitations. We will continue to work closely with NHS Highland to ensure that service user and stakeholder expectations are managed effectively while maintaining a responsive and high-quality service.

Alongside our core service delivery, we actively pursued additional funding opportunities to address unmet need and expand the reach of our advocacy provision.

A particular achievement during the year was securing funding from the Highland Whole Family Wellbeing Fund to establish a Young People's Advocacy Project. This development fulfils a longstanding organisational ambition to extend our advocacy services to younger people. Funding ended some years ago for a similar pilot project for young people in Caithness and Sutherland, and we hoped to secure more funding to continue and expand this. The project, On Your Side, provides non-statutory independent advocacy to young people in selected areas across Highland, building on and expanding our previous project. The current one-year project commenced in August 2025 and we hope to continue funding beyond one year, expanding the project further.

Our Drug and Alcohol Recovery Project, delivered in partnership with Partners in Advocacy, concluded in February 2026. Following a review of future arrangements and the subsequent tendering process, Advocacy Highland withdrew from the partnership, allowing Partners in Advocacy to continue delivering the service independently. We were pleased to retain the expertise and valuable experience of the Advocacy Worker employed through the project, who successfully transitioned into an existing vacancy within our core team.

A significant highlight of the year was the achievement of the Investors in People Platinum Award in March 2026. Having previously maintained Gold accreditation for six years, attaining Platinum status marks a significant milestone in the organisation's development. As the highest level of recognition awarded by Investors in People, Platinum is achieved by only a small percentage of organisations worldwide. This accomplishment reflects the commitment, professionalism and dedication of our staff, volunteers and Board, as well as our culture of continuous improvement.

Advocacy Referrals

Over the past year, we provided independent advocacy support to 593 individuals, addressing 871 advocacy issues. This represents a substantial increase compared with the previous year, when we supported 511 individuals across 781 advocacy issues. This increase has occurred despite our Referral Prioritisation Protocol being in place, and mirrors a significant increase in demand seen in other third sector and public sector mental health and social care services.

We continue to experience significant growth in referrals relating to older people, many of whom are assessed as lacking capacity. A large proportion of these individuals are subject to delayed hospital discharge while awaiting long-term care arrangements. In situations where there is no Power of Attorney or Guardianship in place, advocacy plays a vital role in safeguarding rights and ensuring that an individual's past and present wishes are considered when decisions are being made about their care and future.

Referrals relating to Adult Support and Protection have also continued to increase. These cases often involve particularly vulnerable individuals who benefit greatly from independent advocacy to ensure their views, wishes and rights are fully represented throughout the process.

As in previous years, we have seen a notable rise in urgent and time-sensitive referrals. Many of these cases require speedy action, and this places additional pressure on the team. This trend reflects the increasing pressures experienced across mental health and social care services, where growing demand continues to outstrip available resources. Despite these challenges, our team has consistently demonstrated exceptional resilience, professionalism and flexibility in responding to urgent need while maintaining high standards of advocacy practice.

We responded to 90% of referrals within one week, with 67% receiving an initial response within two working days. Maintaining this level of responsiveness while continuing to deliver a high-quality service is a significant achievement. We remain committed to providing a person-centred, accessible and responsive advocacy service and to continuously improving both the quality and timeliness of our support.

Key Achievements During the Year

- Achieved Investors in People Platinum Award.

- Secured funding for the Young People's Advocacy Project.

- Successfully recruited several new staff members.

- Delivered bespoke Makaton training for the entire staff team in July 2025.

- Reviewed and updated a number of organisational policies and procedures.

- Ensured all employees and volunteers are fully compliant with the new PVG legislation.

- Hosted a successful "Meet the Board" event, bringing together staff and Directors to strengthen engagement and organisational understanding.

- Facilitated the attendance of three staff members at a national advocacy event in Glasgow, contributing to discussions on the future advocacy landscape across Scotland.

- Secured funding through Highland Cross to replace and upgrade organisational laptops.

- Progressed succession planning arrangements following the current Chief Executive Officer's announcement of her intention to step aside, ensuring a smooth leadership transition for the organisation.

Looking ahead

Next year we will continue to focus on our core services and work hard to achieve best outcomes for our advocacy partners. We will also continue to seek additional funding in our endeavour to increase independent advocacy provision in the Highland region. Our extended funding contract from NHS is due to come to an end in September 2026, so we will continue to work with NHS Highland and hopefully secure ongoing funding beyond this date.

Our Future Plans Include:

- Securing ongoing funding from NHS Highland for our core advocacy service

- Securing sustainable funding for the continued delivery of our On Your Side project

- Recruiting, training and supporting Staff, Board members, and Volunteers

- Continuing to improve and develop our advocacy service to meet changing needs

- Securing funding to allow expanding access to advocacy, particularly for underserved communities and those who may not currently engage with services

- Strengthening partnerships and raising awareness of independent advocacy among professionals, communities and decision-makers

- Identifying and addressing gaps in advocacy provision through service development and targeted funding opportunities

- Promoting equality, diversity and inclusion across all areas of our work

- Ensuring the voices and experiences of people who use advocacy services inform service development, policy and practice

- Keeping abreast of national developments in independent advocacy and responding proactively to emerging opportunities and challenge

- Strengthening organisational systems, using outcome data to demonstrate impact, and maintaining our Platinum Investors in People accreditation

Structure, governance and management

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Advocacy Highland is company limited by guarantee and does not have a share capital. Advocacy Highland has a membership comprising individual members. Management of the company is carried out by the Board of Directors or Trustees, via the CEO and staff, in accordance to the Memorandum and Articles of Association. Trustees of the company are elected by the members.

The maximum number of directors permitted is fifteen (15). Where possible the Board of Directors shall contain at least one resident from each of the following 5 districts: Caithness & Sutherland; Ross & Cromarty; Skye & Lochalsh; Lochaber; Inverness, Nairn, Badenoch & Strathspey. If this is not possible, then at least 3 of the 5 districts must be represented. Persons residing out with the Highland Council area may be appointed as directors, providing they uphold the interests of the organisation. A majority of the Directors MUST reside within the Highland Council area. In addition, directors may appoint up to two (2) co-opted directors.

Reference and administrative details

Registered Company number

SC265395 (Scotland)

Registered Charity number

035363

Registered office

First Floor Offices

Inverness Ice Centre

Bught Drive

Inverness

IV3 5SR

Trustees

M B Robertson (resigned 11/8/25)

D Fergusson

P A Courcha (resigned 29/4/25)

P Cliff

M MacLean

V Murray (resigned 18/8/25)

E Ferguson

H Talbot (resigned 31/3/26)

F Thomas (appointed 1/4/25)

G Chalmers (appointed 19/6/26)

A list of trustees serving at the date of signing this report is provided under Company Information. In accordance with

the Articles of Association.

Company Secretary

E Ferguson

Independent Examiner

Equiom (Scotland)

15a Harbour Road

Inverness

INVERNESS-SHIRE

IV1 1SY

Bankers

The Bank of Scotland

Inverness Chief Office

2 - 6 Eastgate

Inverness

IV2 3NA

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

Events since the end of the year

Information relating to events since the end of the year is given in the notes to the financial statements.

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 8 September 2026 and signed on its behalf by:

P Cliff - Trustee

I report on the accounts for the year ended 31 March 2026 set out on pages six to sixteen.

Respective responsibilities of trustees and examiner

The charity's trustees are responsible for the preparation of the accounts in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). The charity's trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the Accounts Regulations does not apply. It is my responsibility to examine the accounts as required under Section 44(1)(c) of the Act and to state whether particular matters have come to my attention.

Basis of the independent examiner's report

My examination was 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 accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as 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 accounts.

Independent examiner's statement

In connection with 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 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and

-	to prepare accounts which accord with the accounting records and to comply with Regulation 8 of the 2006 Accounts Regulations

have not been met; or

(2)	to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Sarah Weir, ACMA

The Chartered Institute of Management Accountants

Equiom (Scotland)

15a Harbour Road

Inverness

INVERNESS-SHIRE

IV1 1SY

9 September 2026

2026

2025

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

Income and endowments from

Donations and legacies

242

-

242

423

Charitable activities

NHS Highland - Advocacy Highland

300,000

-

300,000

300,000

Highland Cross

-

5,983

5,983

-

HADP

-

34,351

34,351

25,309

On Your Side

-

23,333

23,333

-

Investment income

2

1,720

-

1,720

-

Total

301,962

63,667

365,629

325,732

Expenditure on

Charitable activities

NHS Highland - Advocacy Highland

233,142

-

233,142

252,413

Highland Cross

-

320

320

-

HADP

-

38,369

38,369

20,698

On Your Side

-

21,543

21,543

-

Total

233,142

60,232

293,374

273,111

NET INCOME

68,820

3,435

72,255

52,621

Reconciliation of funds

Total funds brought forward

302,313

4,611

306,924

254,303

Total funds carried forward

371,133

8,046

379,179

306,924

2026

2025

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

Fixed assets

Intangible assets

7

1,371

-

1,371

3,369

Tangible assets

8

319

1,317

1,636

1,718

1,690

1,317

3,007

5,087

Current assets

Stocks

9

500

-

500

500

Debtors

10

6,381

-

6,381

5,937

Cash at bank and in hand

375,846

23,396

399,242

471,240

382,727

23,396

406,123

477,677

Creditors

Amounts falling due within one year

11

(13,284

)

(16,667

)

(29,951

)

(175,840

)

Net current assets

369,443

6,729

376,172

301,837

Total assets less current liabilities

371,133

8,046

379,179

306,924

NET ASSETS

371,133

8,046

379,179

306,924

Funds

12

Unrestricted funds

371,133

302,313

Restricted funds

8,046

4,611

Total funds

379,179

306,924

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2026.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2026 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

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 8 September 2026 and were signed on its behalf by:

M MacLean - Trustee

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.

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.

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 cost 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.

Tangible fixed assets

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

Fixtures and fittings

-

33% straight line

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

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

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

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

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of financial activities on a straight line basis over the period of the lease.

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.

2.	Investment income

2026

2025

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

£

£

£

£

Deposit account interest

1,720

-

1,720

-

3.	Net income/(expenditure)

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

2026

2025

£

£

Depreciation - owned assets

1,719

2,055

Hire of plant and machinery

2,216

1,131

Rent, property services & utilities

14,564

12,516

Development costs amortisation

1,998

1,997

4.	Trustees' remuneration and benefits

There were no trustees' remuneration or other benefits for the year ended 31 March 2026 nor for the year ended 31 March 2026.

Trustees' expenses

The trustees' expenses for the year were as follows:

2026

2025

£

£

Travel expenses

-

152

5.	Staff costs

2026

2025

£

£

Wages and salaries

231,463

214,511

Other pension costs

16,422

17,240

247,885

231,751

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

2026

2025

Advocacy Highland

10

11

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

6.	Comparatives for the statement of financial activities

Unrestricted

Restricted

Total

funds

funds

funds

£

£

£

Income and endowments from

Donations and legacies

423

-

423

Charitable activities

NHS Highland - Advocacy Highland

300,000

-

300,000

HADP

-

25,309

25,309

Total

300,423

25,309

325,732

Expenditure on

Charitable activities

NHS Highland - Advocacy Highland

252,413

-

252,413

HADP

-

20,698

20,698

Total

252,413

20,698

273,111

NET INCOME

48,010

4,611

52,621

Reconciliation of funds

Total funds brought forward

254,303

-

254,303

Total funds carried forward

302,313

4,611

306,924

7.	Intangible fixed assets

Development

costs

£

Cost

At 1 April 2025 and 31 March 2026

13,649

Amortisation

At 1 April 2025

10,280

Charge for year

1,998

At 31 March 2026

12,278

Net book value

At 31 March 2026

1,371

At 31 March 2025

3,369

8.	Tangible fixed assets

Fixtures

and

fittings

£

Cost

At 1 April 2025

60,538

Additions

1,637

At 31 March 2026

62,175

Depreciation

At 1 April 2025

58,820

Charge for year

1,719

At 31 March 2026

60,539

Net book value

At 31 March 2026

1,636

At 31 March 2025

1,718

9.

Stocks

2026

2025

£

£

Stocks

500

500

10.	Debtors: amounts falling due within one year

2026

2025

£

£

Prepayments

6,381

5,937

11.	Creditors: amounts falling due within one year

2026

2025

£

£

Trade creditors

222

2

Social security and other taxes

6,376

5,193

Other creditors

3,222

4,797

Deferred income

16,667

162,386

Accrued expenses

3,464

3,462

29,951

175,840

12.	Movement in funds

Net

movement

At

At 1/4/25

in funds

31/3/26

£

£

£

Unrestricted funds

Advocacy Highland Fund

302,313

68,820

371,133

Restricted funds

Advocacy restricted funds

4,611

3,435

8,046

TOTAL FUNDS

306,924

72,255

379,179

Net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

Advocacy Highland Fund

301,962

(233,142

)

68,820

Restricted funds

Advocacy restricted funds

63,667

(60,232

)

3,435

TOTAL FUNDS

365,629

(293,374

)

72,255

Comparatives for movement in funds

Net

movement

At

At 1/4/24

in funds

31/3/25

£

£

£

Unrestricted funds

254,303

48,010

302,313

Restricted funds

Advocacy restricted funds

-

4,611

4,611

TOTAL FUNDS

254,303

52,621

306,924

Comparative net movement in funds included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

300,423

(252,413

)

48,010

Restricted funds

Advocacy restricted funds

25,309

(20,698

)

4,611

TOTAL FUNDS

325,732

(273,111

)

52,621

A current year 12 months and prior year 12 months combined position is as follows:

Net

movement

At

At 1/4/24

in funds

31/3/26

£

£

£

Unrestricted funds

254,303

116,830

371,133

Restricted funds

Advocacy restricted funds

-

8,046

8,046

TOTAL FUNDS

254,303

124,876

379,179

Net movement in funds included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

602,385

(485,555

)

116,830

Restricted funds

Advocacy restricted funds

88,976

(80,930

)

8,046

TOTAL FUNDS

691,361

(566,485

)

124,876

13.	Employee benefit obligations

The company operates a defined contribution pension scheme for its employees. The contributions for the year amounted to £16,463 (2025: £17,240). At the year end there was £3,222 included in other creditors (2025: £4,663).

14.	Other financial commitments

Minimum lease payments under non-cancellable operating leases fall due as follows:

2026

2025

£

£

Net obligations repayable:

Within one year

2,320

5,872

Between one and five years

685

6,705

3,005

12,577

Advocacy Highland is currently engaged in a non-cancellable operating lease for office space, with a lease term extending to October 2027.

15.	Related party disclosures

There were no related party transactions for the year ended 31 March 2026.