Following PHEW (Scotland) becoming a wholly owned subsidiary of Sense Scotland on 18th November 2024, Sense Scotland has supported PHEW (Scotland) to secure the long-term sustainability of the organisation and ongoing provision of respite and short breaks for people supported and families.
The next step in this relationship was for PHEW (Scotland) to fully incorporate into the Sense Scotland organisation. For this to be achieved, the Trustees of the PHEW Transitional Board made the decision to hive up the PHEW (Scotland) business into Sense Scotland on 1st April 2026, and the necessary regulation and legal compliance actions were identified and actioned during the course of 2025/2026.
As a result of this transition, these are the final PHEW (Scotland) financial statements, which the trustees have prepared on a final break up basis rather than a going concern basis, in accordance with applicable Financial Reporting Standards.
I am grateful to PHEW (Scotland) staff, Sense Scotland staff and my fellow Trustees for their patience and hard work in getting us to this position.
The trustees present their annual report and financial statements for the year ended 31 March 2026.
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 governing document, the Companies Act 2006 the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 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)".
PHEW provides a residential short break/respite service for adults with learning disabilities, and works in partnership with people supported, carers/families, and other stakeholders to deliver a high quality, accessible and flexible service which meets the individual needs of guests.
Service Planning
The service is delivered to guests and families from across thirteen local authority areas in Scotland: North Lanarkshire, South Lanarkshire, Greater Glasgow, West Lothian, Falkirk, Stirling, East Lothian, Renfrewshire, East Dunbartonshire, Clackmannanshire, Perth & Kinross, Aberdeen, and Argyll & Bute.
Carers tell us that there is a strong need for the service and, based on referrals, there is a continued demand to support carers and guests.
The trustees have paid due regard to guidance issued by the Office of the Scottish Charity Regulator (OSCR) in deciding what activities the charitable company should undertake.
During 2025/26, PHEW’s main aim was to ensure the sustainability of the charity, thereby enabling the continued provision of residential respite and short breaks.
Work was also undertaken, with the support of Sense Scotland, to prepare for full incorporation of PHEW (Scotland) in to Sense Scotland.
The company is a registered Charity. PHEW (Scotland) provides a residential respite/short break service purchased directly by Local Authorities/Health and Social Care Partnerships (predominantly North Lanarkshire Council), or indirectly by way of payments from the individual user’s Self-Directed Support budget. This income is the service’s main source of income.
Overall result from operating activities shows a deficit for the year of £92,852 (2025: deficit of £18,799) due in the main to rising labour costs (including the increase in Employer’s National Insurance Contributions), and the use of agency staff to support staff vacancies.
The free reserves (unrestricted) as at 31 March 2026 are £612,400 (2025: £666,066).
Basis other than going concern
As a result of the decision to hive the business activities and continue the core operations within Sense Scotland from the 1st April 2026, the Trustees, with the appropriate advice, concluded that the financial statements for 2025/26 shall be prepared on a basis other than going concern.
The financial statements have, therefore, been prepared on an appropriate break-up basis, reflecting the circumstances prevailing at the reporting date and the Trustees' intention to wind this entity up in the near future. The expectation is that the entity will continue in dormant existence in the short term, with the intention to wind up the dormant entity, as described in note 24.
Under this basis, assets and liabilities have been reviewed having regard to their recoverability, realisation, and settlement in the context of the charity's cessation and transfer of activities. Appropriate adjustments have been made where the amounts expected to be realised or settled differ from the amounts that would have been recognised under a going concern basis.
This represents a fundamental change in the basis of accounting, and the Trustees consider the resulting financial statements to provide the most appropriate information to users in the circumstances.
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 between three and six month’s 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.
Phew (Scotland) works within the terms of an investment policy to maximise the return on invested assets while minimising risk and expenses.
The Trustees and investment managers maintain an overview of the investments policy, including its financial performance and whether it is achieving agreed objectives.
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Risk management
The Trustees have a duty to identify and review the risks to which the charity is exposed, and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
Quality assurance systems, including risk identification and management systems, are monitored and inspected by both the Care Inspectorate and the Planning and Quality Assurance service within North Lanarkshire Council.
The Service maintains appropriate employers’ and public liability insurance.
The charity is a company limited by guarantee governed by its memorandum and Articles of Association dated April 1996. It is a registered as a charity with the Scottish charity Regulator.
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 Board will have no less than 3 and no more than 6 members and will be made up of professional and lay people including at least one member who cares for a person with Learning Disabilities.
PHEW Board of Directors is committed to achieving a membership that has a strong balance of the skills and experience required to advance the mission and purpose of PHEW.
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.
Trustee induction and training
Before being accepted as a member of the Board the nominated person should agree that they will attend Board Meetings on a regular basis and participate in other functions organised by the Board to benefit the Organisation. New members are asked to meet with the Chair or his/her nominee and are briefed on the main duties and responsibilities of a Trustee. Written guidance about duties and obligations are available to support this process.
In accordance with the company's articles, a resolution proposing that William Duncan + Co (Audit) Ltd be reappointed as auditor of the company will be put at a General Meeting.
The trustees' report was approved by the Board of Trustees.
The trustees, who are also the directors of Phew (Scotland) 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; 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.
Opinion
We have audited the financial statements of Phew (Scotland) (the ‘charity’) for the year ended 31 March 2026 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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.
We draw attention to note 24 to the financial statements which explains that the Trustees intend to wind up the entity and therefore do not consider it appropriate to adopt the going concern basis of accounting in preparing the financial statements.
Accordingly the financial statements have been prepared on a basis other than going concern as described in the accounting policy note 1.2.
Our opinion is not modified in respect of this matter.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:
the information given in the trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and
the directors' report included within the trustees' report has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:
proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; 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 prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' report and from the requirement to prepare a strategic report.
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 an auditor's report 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Enquiry of management, those charged with governance and the entity's solicitors around actual and potential litigation and claims;
Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations;
Performing audit procedures over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for potential management bias;
Reviewing minutes of meetings of those charged with governance; and
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and
Reviewing the level of and reasoning behind the company's procurement of legal and professional services.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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 trustees those matters we are required to state to them in an auditor’s 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, the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
William Duncan + Co (Audit) Ltd is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from discontinuing activities.
Phew (Scotland) is a private company limited by guarantee incorporated in Scotland. The registered office is Respite Care Centre, 49 Hope Street, Motherwell, Lanarkshire, ML1 1BS.
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 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)". The charity is a Public Benefit Entity as defined by FRS 102.
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.
These financial statements are prepared on the break up basis. Post year end, the operations have discontinued within this entity and therefore the trustees do not consider it appropriate to adopt the going concern basis.
The entity is part of a trading group, Sense Scotland Group. The charitable activities and core operations have been hived up to the parent, Sense Scotland (SC147570), along with the assets and funds. It will continue its core operations as a cost centre within the parent entity, Sense Scotland, for the foreseeable.
The trustees have an expectation that the charity will continue in dormant existence in the short term, with the intention to wind up the dormant entity, as described in note 24.
No adjustments arose as a result of ceasing to adopt the going concern basis of accounting.
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.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The 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.
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year, and £nil (2025 - £nil) was paid to trustees for travelling expenses during the year.
The average monthly number of employees during the year was:
The remuneration of the three key management personnel was as follows:
The charity is exempt from taxation on its charitable activities.
Standard security has been given to The National Lottery Charities Board over the lease between North Lanarkshire Council and PHEW (Scotland) of ground in Hope Street, Motherwell.
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 restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
The Property fund represents capital grants and other donations received in respect of the property. The balance relates to the carrying value of the assets to be released in line with the depreciation policy over the useful life of the assets.
The Hydro pool fund is grant funding received towards a Hydro pool. This is intended to be utilised in the near future.
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.
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
On the 1st April 2026, PHEW (Scotland) ceased to trade within this entity. All trade and assets were hived up to the parent entity, Sense Scotland (SC147570). The parent is sole member and therefore has 100% ownership and control of the subsidiary.
PHEW (Scotland)'s trade and core business remains the same within Sense Scotland as a named cost centre. The Trustees expect this entity to remain in dormancy in the short term, with the intention to wind it up.
Further information is available within the financial statements of Sense Scotland Group (SC147570).
During the year the charity entered into the following transactions with related parties:
North Lanarkshire Council
The charity has a contractual long term lease agreement with North Lanarkshire, for the grounds upon which PHEW's respite centre is situated. The lease agreement includes clauses and terms which deems North Lanarkshire Council as the host authority, allowing the local authority to set the host authority rates. North Lanarkshire Council is one of PHEW (Scotland)'s key customers.
The charity received funding totalling £477,830 (2025 - £481,617) from North Lanarkshire Council for Respite contract funding.
Included within Debtors at note is a balance owed from North Lanarkshire Council of £41,766 (2025 - £nil) inclusive of valued added tax.
During the year North Lanarkshire Council provided waste management services provided of £1,430 (2025 - £1,375).
Included in Accrued income at note 17 is a balance in relation to North Lanarkshire Council of £nil (2025 - £40,100), inclusive of value added tax.
Service Users
PHEW (Scotland) provides services to one (2025 - one) close family member of Trustees.
£3,978 of fees and allowances income (2025 - £4,115) was received in relation to these service users during the year.
The charitable company is controlled by its parent charity, Sense Scotland which is governed by its board of Trustees. Sense Scotland is sole member and has 100% ownership and control of PHEW (Scotland).
The charity had no material debt during the year.