**Charity number: 1051947 Registered number: 03143819**
Registered number: 2626039Registered number: 2626039
## **SCOTTS PROJECT TRUST**
**TRUSTEES’ REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2023**
**SCOTTS PROJECT TRUST (A company limited by guarantee)**
## **CONTENTS**
|Legal and administrative information|1 - 2|
|---|---|
|Report of the trustees|3 - 19|
|Independent auditors' report|20 – 24|
|Statement of financial activities|25|
|Balance sheet|26|
|Statement of cash flows|27|
|Notes to the financial statements|28 - 38|
**Detailed income and expenditure account and summaries**
**SCOTTS PROJECT TRUST**
## **(A company limited by guarantee)**
## **LEGAL AND ADMINISTRATIVE INFORMATION** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **Jill Scott**
**Life President Jill Scott Trustees Tom Hoppe, Chairman Nick Ward Susan Bourne Derek McMenamin Andrew Blevins Peter Bibb Auxilia Muganiwah Martin Miles Richard Tapsfield Mick Pavey Liam Slattery** (appointed 24/6/22) **Keith Ritchie** (appointed 12/05/23) **Company registered number** 03143819 **Charity registered number** 1051947 **Registered office** Scotts Office Delarue Close Tonbridge TN11 9NN **Company secretary Nick Ward Website/email address** www.scottsproject.org.uk info@scottsprojecttrust.org.uk **Independent auditors** Lindeyer Francis Ferguson Limited North House 198 High Street Tonbridge TN9 1BE **Bankers** Handelsbanken First Floor, 50-52 London Road Bligh's Meadow Sevenoaks TN13 1AS **Solicitors** Thomson Snell & Passmore LLP 3 Lonsdale Gardens Tunbridge Wells TN1 1NX
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**SCOTTS PROJECT TRUST (A company limited by guarantee)**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
_**FOR THE YEAR ENDED 31 MARCH 2023**_ stered number: 2626039Registered number:
**Senior management team**
**Mark Allen** – Chief Executive Officer **Graham Funnell** – Registered Manager **Clare Whymark** – Manager, Day Service Skills and Activities **Helen Cross** (until 31/12/22) and **Graham Reid** – Manager, Finance and Operations
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**SCOTTS PROJECT TRUST (A company limited by guarantee)**
## **TRUSTEES REPORT**
The trustees (who are also directors of the charity for the purposes of the Companies Act 2006) present their annual report together with the audited financial statements of Scotts Project Trust (‘the Trust’) for the year ended 31 March 2023. The trustees confirm that the annual report and financial statements of the Trust comply with the current statutory requirements, the requirements of the Trust's governing document and 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) (Charities SORP (FRS 102)). The legal and administrative information on pages 1 and 2 of this document forms part of this report.
## **Objectives and Activities**
_**Our vision**_ is that people with a learning disability should gain the confidence and independence to lead fulfilled, happy lives.
The charity’s Objects are the relief of those in need by reason of a learning disability specifically restricted to the following:
- (1) (a) To establish and operate a home or homes to provide either temporary or permanent residence or residences in England for persons with a learning disability;
- (b) To establish and operate shared or individual, permanent or temporary, independent living accommodation in England for persons with a learning disability;
- (c) To establish and operate a domiciliary care and support service in England for persons with a learning disability in their own homes or in accommodation provided by others;
- (d) To establish and operate a respite care and support service and support in England for persons with a learning disability who are generally cared for and supported by their family or other carers;
- (e) To establish and operate day services in England for persons with a learning disability including without limitation services promoting and supporting their wellbeing, goals and aspirations, recreation or other leisure time occupation, life and work skills, education, independence, social interactions and general personal development; and to make provision for the maintenance, care and support of such persons and their medical and nursing needs (whether with or without associated or ancillary services to their families, dependents and carers) and for their travel to and from the charity’s premises or elsewhere for social, recreational or leisure purposes.
(2) To provide training, advice, support, co-operation and other assistance in England in any way connected with or calculated to benefit persons with a learning disability.
The needs of adults with a learning disability drive everything we do. _**Our mission**_ is to provide an excellent, supportive service and a nurturing environment so the people who use our service can get the most from life.
_**Our values**_ reflect our vision and mission, shaping every aspect of our work:
**Care:** people who live in one of our houses or use day services at Scotts should enjoy homelike surroundings, be supported in a way that meets their individual needs and develop mutually enjoyable relationships.
**Support:** each person should be valued as an individual and can expect their mental, physical and emotional needs to be understood and supported in a way that recognises the person rather than their physical or intellectual limitations.
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**SCOTTS PROJECT TRUST (A company limited by guarantee)**
## **TRUSTEES REPORT**
**Develop:** we support people with a learning disability to choose how to live their own lives, as independently as they can, and to play a full part in the wider community.
## **Services and Activities**
We run three closely linked services:
_**St Peter’s Row**_ is home to fifteen adults. Although it is registered and managed as a single residential care home, it comprises a terrace of three houses which are distinct households, each with its own character and a daily routine planned by residents and staff. The houses have their own kitchens and sitting rooms and every resident has their own bedroom, which is private. The attractive shared patio and garden is used by everyone.
Residents are actively involved in sharing their needs and wishes, and the staff team tailor their support accordingly.
Many people choose to get involved in sessions at the Day Services, or activities provided by other organisations, and staff provide support for trips to events like concerts and pantomimes, and summer holidays. We encourage people to live as independently as they can, and residents may choose to move to our supported living service.
_**“We sleep very well at night knowing X is safe, well and looked after. X’s key worker is exceptional and goes over and beyond what is required from her. There is, I am sure, nowhere else as wonderful as Scotts.”**_
## **Family Member of Resident**
The _**Supported Independence Service**_ is based in two adjacent detached houses, Oaks and Willows, near the main Scotts site. Four people share each house and there is also a studio flat. This service is a very effective step towards living independently, and staff support each person to meet the goals they set for themselves. For example, someone might want to do their own shopping and cooking, volunteer or go to college, or get involved in social activities. As at St Peter’s Row, each tenant has their own bedroom, and each household shares a kitchen, a sitting room, and a garden. Several tenants take part in classes and sessions at the Day Services. Oaks and Willows are a short bus journey away from the centre of Tonbridge, so tenants can easily get to the local leisure centre, for example, or meet friends in town.
Our on-site _**Day Service**_ is a hub for learning and socialising. Around 80 people attend the centre every week, enjoying a range of sessions that might be focused on fun or friendship, or supporting them to learn how to do
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## **SCOTTS PROJECT TRUST (A company limited by guarantee)**
## **TRUSTEES REPORT**
everything from managing their laundry to safely accessing the internet; skills which help them to live as independently as possible. The sessions run each weekday with gardening, dance and drama and journalism among the most popular. We aim to provide an excellent, personalised service. The focus is on gaining confidence as well as essential life skills, and our lively drama and dance classes are a distinctive part of what makes Scotts so special.
People with a learning disability can easily become socially isolated, so activities like sports, games and singing at lunchtime offer an important chance to enjoy existing friendships and form new ones. Our Coffee Shop is open to the public on Wednesday morning, helping students gain valuable work experience in a safe environment.
_**“Everything you do for all the students is top of class. All the staff are well trained, the help the students receive is 'out of this world'. Jill Scott must be very proud of you as are all the parents”.**_
**----- Start of picture text -----**
Day Service Student
**----- End of picture text -----**
_Bubble painting was enjoyed by all during the arts and crafts session_
_Our wonderful people demonstrating many skills during the cookery sessions_
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**SCOTTS PROJECT TRUST (A company limited by guarantee)**
## **TRUSTEES REPORT**
## **Providing Public Benefit**
The Trust’s services are open to adults with a learning disability, and we cater for people with a wide range of needs. The Trust’s founder, Jill Scott, developed the services to have a Christian ethos, which they retain; however, we are an inclusive charity and we provide our services irrespective of race, gender, sexual orientation, religion or belief.
The trustees decide on objectives and activities that benefit people who live in the Trust’s houses and attend its Day Services, in accordance with the Charity Commission’s guidance on public benefit. The Delarue Hall and the Barn are offered for hire to the local community and are popular venues for clubs and societies as well as one off events. Whilst they were closed at various times during the Covid-19 outbreak, they reopened in 2022. The Changing Places facility is available to the public during opening hours, and the whole of the Barn and Hall are fully accessible to all service users.
## **Staff**
The staff at Scotts are key to the homely and caring ethos of the Trust and the work of many of them has been outstanding. Their flexibility, dedication, care and hard work have kept our service users safe, fulfilled and happy. Once again, the trustees would like to thank all the staff for their dedication and the difference they make to everyone who uses the Trust’s services. Our high-quality service is made possible by their hard work and commitment. The Trust regularly reviews the training and development needs of staff beyond statutory and regulatory requirements.
_**“The staff support the adults by listening to them, encouraging them and helping them to feel happy and safe”**_
**Day Service Student**
## **Volunteers**
Scotts is fortunate to benefit from the support of our volunteers, and the trustees are grateful for the time and energy they offer. In the Day Services, volunteers support clubs and activities and support sessions and special events. In addition, pupils from Tonbridge Grammar School and Tonbridge School continue to provide invaluable help to our students as part of their community outreach programmes.
## **Community engagement and fundraising**
Funding from local authority fees covers the cost of a basic service provision, but to maintain and improve our facilities we need to raise further funds continually. Fundraising provides our residents and those attending the Day Service with an environment in which they can enjoy life, facilities that offer the privacy and dignity they deserve, and the opportunity to look forward to a brighter future.
Keeping our buildings, grounds and essential equipment in good condition is a costly business. Our budget for this is approximately £50,000 every year, for which funds are raised largely in our local community.
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**SCOTTS PROJECT TRUST (A company limited by guarantee)**
## **TRUSTEES REPORT**
## **Achievements and Performance in 2022-23**
## **COVID-19**
## **General comments**
After an extended and extraordinary period, all the Trust’s services are fully open, and operating as normal. March 20[th] 2023 saw the lifting of a final set of Covid-19 restrictions although masks are still made available for anyone who wishes to wear one. Whilst we expect that further measures may be needed to combat future outbreaks, new strains or other illnesses, it is a relief to record this return to normality and to do so with no service users or staff members having lost their lives to the virus.
## **Financial impact**
The Finance and General Purposes committee oversaw the financial impact of Covid-19, and undertook scenario planning, monitored PPE stocks and administration of the furlough scheme, and received general, regular updates under a standing agenda item for each meeting.
Three years ago, trustees increased reserves held for business interruption purposes from four months’ costs to six in light of the growing threat of a pandemic, and total reserves were, and remain, substantially above that figure. The trustees review of the reserves position is noted below in the financial summary.
## **Further Covid-19 considerations**
Trustees anticipated that the outbreak would impact our ability to fundraise, and we reduced our budgeted expectation for 2021/22 and 2022/23 accordingly. These funds are generally used for maintenance and improvements to the estate. Sufficient reserves existed to make up the shortfall. Whilst it is expected that a further impact will be seen in the financial year ahead, trustees expect fundraising conditions to ease, and, again, sufficient reserves exist to meet any shortfall.
The CEO considered the impact on staff, and a number of measures were taken. First, an Employee Assistance Programme was added in March 2020. This provides anonymous and free counselling services, and other employee support. Pay was increased, there was regular communication about procedures to be followed, the situation regarding PPE stocks, and visiting arrangements. Over the period of the pandemic, three Covid-19 related special awards were made to the staff who had borne the brunt of the outbreak. The 2022 pay increase was brought forward to 1 January (from 1 April) and the 2023 pay increase followed suit. From 1[st] May 2023, Benenden Health cover was introduced for staff with 3 or more years’ service as a further benefit.
Trustees gave consideration as to whether there were any Covid-19 related implications for the investments the charity held, and expected there to be a reduction in interest received, which was the case. This did not have a material impact upon the charity, and the Trustees expect interest received to increase over the coming year.
Overall, throughout the pandemic trustees believed that the Trust had the resources to continue and that it was a going concern, and this remains the case.
## **Property improvements**
Owing to Covid-19, work in the residential home and the two independent living houses was limited mainly to necessary maintenance. In 2022/23, a programme of ‘catch up’ work was executed to ensure Scotts’ high standards were maintained across all properties. Mainly cosmetic, they included the internal repainting of the houses at the Oaks and Willows, the repair and cleaning of various bathrooms, and the start of work on the external paintwork.
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**SCOTTS PROJECT TRUST (A company limited by guarantee)**
## **TRUSTEES REPORT**
All flooring which posed any risk of trips or slips have been either repaired or replaced, including the hallway to the house two kitchen, the entrance footwell at the Willows and the flooring in the Willows flat. All loose mats were also removed and fixed matting installed where needed.
All lighting internally at St Peter’s Row is now low energy LED with only four of the outside lights in the cloister remaining as fluorescent, and these will be changed as the units fail. All administration, Barn and Day Service lights are now low energy LED. The workshop is still running fluorescent lighting, but this will be changed within the Barn Garden project. All carpark lighting is low energy operated on light sensitive switching to reduce run time.
St Peter’s Row’s doors were draughts sealed, but the doors themselves are warped, and will need to be replaced in due course.
Planters were introduced to the car park to mark and protect a pedestrian crossing and the car park lines were remarked and extended following the car park resurfacing.
## **Environmental assessment**
A 2021/22 survey of the current state of the buildings’ energy efficiency and insulation showed that the basic, widely recommended measures were already in place. This year, consideration was given to the addition of further measures, such as the installation of solar panels, and quotes obtained. The Finance and General Purposes committee will review the cost/benefit analysis for these and other measures in 2023/24.
## **Fundraising and engagement with the community**
The focus has been on boosting Scott’s profile within the local community to provide greater opportunity for our service users, to reconnect existing partnerships whilst creating new fundraising opportunities. We have seen many successful events take place on site, whilst also reaching out to new and existing grant funders.
The donations we have received come through three main sources:
## **Community Fundraising**
This includes internal and external events within the community, sponsorship from individuals and online platforms such as Amazon Smile. This year has seen a number of successful events, as follows.
## Dragon Boat Race 2022
Held in September, the annual event took place in the heart of Tonbridge. Scotts formed a strong team comprising of staff members and their friends and family. The event was successful in terms of building Scotts’ community profile, as well as raising £1,826 in donations and sponsorship.
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**SCOTTS PROJECT TRUST (A company limited by guarantee)**
## **TRUSTEES REPORT**
## Art and Craft Show
The event was held onsite and gave parents, carers and friends the opportunity to view and purchase students’ work. The event was enjoyed by all involved and fundraised over £1,000.
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**SCOTTS PROJECT TRUST (A company limited by guarantee)**
## **TRUSTEES REPORT**
## Kent Advanced Motorcycle Group (KAMG) Easter Visit
The KAMG visit us throughout the year to spend time with the residents. During this trip, the group came armed with plenty of chocolate for Easter, as well as a generous donation. Staff of Scotts and volunteers welcomed the group with tea, coffee and cake in The Barn. The residents particularly enjoyed hearing the revs of the engines!
## **Charitable Trusts and Organisations**
This year Scotts have gratefully received grants from Waitrose, the Coop, The Tonbridge Lions and Fidelity. Applications are submitted throughout the year.
## **Regular Donations**
Donations have been received from individuals who regularly donate to us on a monthly or yearly basis. Many of these donors are friends and family of Scott’s Service Users and we are profoundly grateful to them for their continued support.
The chart below demonstrates the share of donations by each source.
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**SCOTTS PROJECT TRUST (A company limited by guarantee)**
## **TRUSTEES REPORT**
**----- Start of picture text -----**
Sources of Fundraising 2022-23
18%
Corporates and Organisations
Gift Aid
47%
Other
Community Fundraising
Regular Donors
31%
1% 3%
**----- End of picture text -----**
## **Plans for Future Financial Periods**
## **Strategic Plan**
The Strategic Plan for the period 2020 to 2025 was agreed by the trustees in the autumn of 2019, and the objectives set out therein remain our objectives for the next financial period. There were no material changes to the Strategic Plan in 2022/23. Work on the 2025 to 2030 plan will start this year.
## **Improving our facilities**
## **Residential care (St Peter’s Row)**
Continued updating of the décor and furnishings will take place.
A working party reviewed possible improvements to St Peter's Row to improve accessibility for users to all parts of the houses, and recommended that two bathrooms be upgraded to fully accessible wet rooms. The first of these will be put in place in the summer of 2023. Other options such as the installation of a lift were discussed and will be included in a list of potential improvements for the future, should service users require them.
## **Day Services**
## **Transforming the Barn Garden**
In addition to wishing to maintain our property to a high standard, we wish to realise our vision and strategy by implementing transformational initiatives that require substantial financial investment. Funds are raised largely from a range of appeals.
A project to extend and enhance our Barn Garden facilities to provide a greater outdoor session space for people with learning disabilities is under way. These improvements will enable our service users to gain new skills, participate in outdoor activities and enjoy social interaction.
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## **SCOTTS PROJECT TRUST (A company limited by guarantee)**
## **TRUSTEES REPORT**
The improvements will provide a more cohesive session space with much improved access for wheelchairs, a refurbished building in which sessions can take place, a new storage and potting shed, and planters and a greenhouse that will allow wheelchair users to access them. It will improve drainage and increase the capacity of our covered areas to enable the facilities to be used in a wider range of weather conditions. Between 50 and 80 adults with learning disabilities will benefit from the improved space during session activities. It will also provide a lovely space for quiet times and lunches which are all important for the well-being and enjoyment of our service users.
## **Timescales and budget**
The project is on course to complete all the work by the summer of 2023, and will fall within the originally estimated £40,000 budget.
## **Supported Independence Service (Oaks and Willows)**
We have continued to improve the general decoration of the houses, guided by the service user tenants and our internal reviews. Further improvements will be led by the tenants, supported by their key workers, to ensure their needs and preferences are considered fully and may include new curtains and blinds, external decoration and the replacement of soffits and fascias.
## **Scotts venue hire for the community and raising funds for Scotts**
As of the end of March 2022, Scotts re-opened the Hall and Barn for private hire. Since then, a number of regular hirers as well as one-off hires have booked our spaces. The one-off hires mostly consist of children’s birthday parties and low-key evening functions, and the regular hirers include a drama class for children, martial arts and a fitness class.
Around £10,000 was raised through such hiring in 2022/23, and it is hoped that Scotts will be able to generate around £12,000 of income to support our charitable activities in 2023/24.
## **New sessions in the Day Service**
We have been able to accept more students for our sessions and introduced a new session in 2022/23, enhancing the choice available to attendees and increasing capacity.
## **IT**
We have completed the migration to Microsoft 365 and the Cloud, and further improvements both to the infrastructure and to hardware are planned for 2023/24.
We will work on introducing app-based technology to assist staff in carrying out some of the key record keeping functions. The adoption of a new visitor tracking app is in a pilot phase and is expected to be rolled out too.
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**SCOTTS PROJECT TRUST**
## **(A company limited by guarantee)**
## **TRUSTEES REPORT**
## **Community Fundraising and Marketing**
The year 2022-2023 has provided the opportunity to mobilise a fundraising plan, which was stalled previously due to the pandemic. Below are the activities and area of focus for the year ahead.
## **School Engagement**
## Tonbridge School & Tonbridge Girls’ Grammar School
Scotts have maintained their relationship with Tonbridge School. Day Service students are hosted by Tonbridge School on a weekly basis throughout the year and take part in sporting activities.
Scotts have been invited to be part of their ‘Giving Day’ in June. This year, students will be invited to the school to take part in a range of enriching activities, including cookery, arts and crafts as well as the usual ‘sports day’ activities.
The girls from Tonbridge Girls’ Grammar join Scotts weekly ‘Sing and Sign’ sessions which are enjoyed by everyone.
Skinners Kent Academy and North Kent College are also keen to support Scotts during the year ahead by offering volunteers, holding their own fundraising activities and through event collaboration.
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## **SCOTTS PROJECT TRUST (A company limited by guarantee)**
## **TRUSTEES REPORT**
## **Events**
## **Dragon Boat Race- Tonbridge**
On Sunday 6[th] September, Scotts will be competing in the annual Dragon Boat Race. This will again allow Scotts to cement their presence within the local community. This year, Scotts plan to partner with a corporate organisation to further grow the success that was seen last year.
## **Scotts Summer Fete**
On 19[th] August, we will hold a summer fete. This is being planned and coordinated by the Fundraising, Marketing and Community Engagement Manager and staff from the St Peter’s Row. This will be an enjoyable afternoon for our service users, staff, friends, family and the wider public.
## **Charity Golf Day and Fundraiser**
Scotts are delighted to plan and host a charity golf day at Knole Park Golf Club on Wednesday 27[th] September. This is a brilliant opportunity for keen golfers to show their support for Scotts whilst playing at the prestigious course. The day will offer 18 holes of golf, a 2-course lunch, plenty of competitions and an auction.
## **Scotts Quiz Night**
In October, Scotts will hold a quiz night at Delarue Hall. The local community as well as the ‘Friends of Scotts’ will be invited, with the aim to deliver a fun-filled light-hearted quiz evening whilst providing the opportunity to fundraise and to showcase our excellent premises and facilities.
## **Corporate Partnerships**
A large proportion of donations are received from local corporates and organisations. We will focus on nurturing our existing relationships with Handelsbanken, Fidelity, The Tonbridge Lions, Waitrose, and the Co-op whilst endeavouring to build relationships with new organisations. This will be achieved by optimising grant application opportunities, submitting ‘Charity of the Year’ applications, and building Scotts community profile and inviting local businesses to Scotts events.
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**SCOTTS PROJECT TRUST (A company limited by guarantee)**
## **TRUSTEES REPORT**
## **Structure, governance, and management**
## **Constitution**
The Trust was incorporated in January 1996 as a company limited by guarantee. The Trust changed its name from Scotts Project Limited to Scotts Project Trust as from April 2001. The principal office of the Trust is Scotts Office, Delarue Close, Tonbridge, Kent TN11 9NN. The trustees are also directors of the Trust for the purposes of company law.
The governing document of the Trust is the Articles of Association. In accordance with good practice, a review of the Trust’s governance took place between January and October 2017 to include all aspects of the constitution, Trustee Board, committee structure and delegation. This is being refreshed in 2023.
The charity’s Objects are noted on page 3.
## **The trustees**
This year saw no trustees step down from the Trustee Board, and one new trustee (Liam Slattery) join. Induction and training of new trustees is undertaken in discussions with existing trustees and managers, and by attending trustee and committee meetings. The trustees, all of whom are unpaid volunteers, are elected for a period of three years. Under the Articles one third of the trustees will retire each year at the AGM.
## **Organisational structure and decision making**
Trustee meetings are held every two months or more often if required, at which decisions are taken regarding matters of policy and major capital expenditure, as well as reviewing financial and management accounts and budget plans, and the minutes of committee meetings.
The Chief Executive and Senior Management meet regularly to oversee the day-to-day running of the Trust, including the management of the residential care home, supported independence service and Day Services. Compliance with the requirements of the Care Quality Commission (CQC) and relevant local authorities is regularly reviewed.
Committees oversee key functions. At least one Trustee and one Senior Manager sit on each committee. Where possible and appropriate, our residents and students are also represented.
The **Finance and General Purposes Committee** (“F&GP”) meets regularly and is responsible for overseeing the financial management and administration of all the Trust’s activities. F&GP takes responsibility for the maintenance and management of the Trust’s property and assets, budgeting, performance, and risk reporting. F&GP is also responsible for remuneration policy and sets the pay and remuneration of key management personnel.
The **Health and Safety Committee** meets at least four times a year to co-ordinate the Trust’s health and safety policies, procedures, and practices in compliance with current legislation. Accidents and incidents (if any) are reviewed together with any required actions. The Trust’s external health and safety advisers provide recommendations and reports to the committee periodically.
The **Care and Safeguarding Committee** provides oversight of the Trust’s care standards and practice, safeguarding policies including their review and updating, and reviews and directs the Internal Audit function. It meets at least four times a year and provides assurance to trustees that safeguarding and care are of a high standard.
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**SCOTTS PROJECT TRUST (A company limited by guarantee)**
## **TRUSTEES REPORT**
## **Quality assurance**
The trustees strive to ensure that a high standard of service is achieved and maintained in all areas of the Trust’s work. The trustees ensure that the Trust satisfies all current legislative and regulatory requirements, including the specific requirements of the CQC. Each service has a designated trustee who has oversight responsibility for that service and provides mentoring to the senior manager.
Our experienced Internal Auditor undertakes independent audits of the Trust’s standards of care and compliance with regulatory requirements; in addition, they provide support for managers who wish to discuss aspects of their service provision. The audits include talking to the people who use our services and checking records; there is an opportunity to meet staff and the registered manager. The Internal Auditor reports to the CEO, but also has direct access to the Chair of Trustees, attends trustee meetings annually to discuss findings and recommendations, and sits on the Care and Safeguarding committee.
An external HR consultant is engaged to provide advice. From time to time, an external safeguarding expert has been consulted to review policies.
## **Governance of Fundraising**
With regard to fundraising standards, Scotts Project Trust is registered with the Fundraising Regulator, and acts in accordance with the Fundraising Regulator’s Code of Practice, which sets out the standards with which a charity should comply. The Code can be found online at: https://www.fundraisingregulator.org.uk/code-of-fundraising-practice/code-of-fundraising-practice/
Specifically:
- no external fundraisers were engaged by the charity in the year.
- there were no failures by the charity, or by any person acting on its behalf, to comply with the fundraising standards to which the charity was committed.
- the charity monitored the fundraising activities of all persons acting on its behalf by:
- agreeing a schedule of activity
- explicitly excluding street collections (including ‘chugging’), house-to-house calls, cold calling, and mass mailing (‘junk mail’) as methods of fundraising
- frequent meetings between the Fundraising Manager and the Chief Executive to review activities; and
- `o` ensuring that all official applications to potential donors were reviewed and authorised either by the Fundraising Manager or the Chief Executive
- This also ensured that vulnerable people and other members of the public were protected from behaviour which: `o` is an unreasonable intrusion on a person’s privacy; and/or
- is unreasonably persistent; and/or
- places undue pressure on a person to give money or other property.
No complaints were received by the charity, or by a person acting on its behalf for the purposes of fundraising, about fundraising activity.
In addition to the above, a designated trustee has oversight responsibility for Scotts’ fundraising activities and reports his reviews to F&GP and the Trustee Board.
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## **SCOTTS PROJECT TRUST (A company limited by guarantee)**
## **TRUSTEES REPORT**
## **Financial review**
Trustees are satisfied that the accounts should be drawn up on a going concern basis.
The results of the year are as follows:
|Operating surplus
Income from grants, donations and events, less fund-raising costs:
Unrestricted
Restricted
Net Income|2023
£
56,589
7,833
7,942
72,364|2022
£
13,549
28,207
93,930
135,686|2022
£
13,549
28,207
93,930|
|---|---|---|---|
The Trust’s main source of income is fees from local authorities for residential and day services, which enable the Trust to realise its charitable objectives.
As noted above, income from fundraising activities was lower in the year than might be expected in non-covid times. Whilst some impact is expected to be seen in 2023/24, the trustees expect fundraising income to be higher than 2022/23.
## **Risk management**
The trustees regularly review the major operational, financial and governance risks to which the Trust is exposed. Guidance is taken from relevant committees and consultants to ensure systems and procedures are in place to mitigate those risks and determine whether any further steps should be taken to manage those risks more effectively.
The trustees consider that the principal risks which the Trust faces are:
- The risk that fees from local authorities for the Trust’s services fail to cover the costs of providing those services due to continued funding shortfalls. The trustees seek to mitigate this risk by maintaining contact with the relevant councils to negotiate adequate payment for services provided, by consulting with the councils so that the Trust is fully aware of each council’s evolving views on the services they require and by providing councils with sufficient information on the Trust’s costs, to support the case for funding.
- The risk that shortages in the UK workforce will make recruitment and retention difficult. The Trust mitigate this through a range of measures as mentioned above, including reward, recognition, and broader support.
## **Reserves Policy**
This section includes the Trust’s policy on reserves, and current levels. Each year, and throughout the year when appropriate, trustees consider the main components of reserves, and decide whether to amend them.
## **Policy for holding reserves for Operating Expenses**
As noted above, reserves equal to six months of operating expenses were held in the financial year. In view of the risks and uncertainty of income, trustees will maintain six months for 2023/24.
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## **SCOTTS PROJECT TRUST (A company limited by guarantee)**
## **TRUSTEES REPORT**
|**Amount and category of Reserves**
The Trust held the following reserves at 31 March 2023
Of which, represented by tangible fixed assets held
for the purposes of the Trust’s charitable objects
Restricted reserves held for specific purposes
Restricted reserves for the Welfare Fund *
Reserves designated for strategic projects **
Unrestricted free reserves
Of which, Reserves held to protect the Trust due to unexpected
fall in income and/or increased expenditure ***
Other free reserves ****|**2023**
**2022**
**£**
**£**
4,726,258
4,653,894
(2,484,201)
(2,567,895)
(59,942)
(18,704)
(124,816)
-
(1,200,000)
(1,050,000)|
|---|---|
||963,411
911,183|
||936,162
871,263
27,249
39,920|
***** Restricted to use for the welfare of service users or staff in exceptional circumstances
****** In line with the Trust’s charitable objectives and long-term Strategic Plan, £1,200,000 of the unrestricted reserves are designated for the purchase/building or renovation for supported independent living accommodation.
******* Six months’ operating expenses held to protect the Trust in exceptional circumstances
******** Held for general costs and unforeseen circumstances.
## **Land and buildings**
The trustees believe the land and buildings included in the balance sheet at £2,344,108 are worth not less than that figure but a more precise value cannot be determined without a professional valuation.
## **Statement of trustees' responsibilities**
The trustees (who are also directors of the Trust for the purposes 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).
Page 18
## **SCOTTS PROJECT TRUST (A company limited by guarantee)**
## **TRUSTEES REPORT**
Company law requires the trustees to prepare financial statements for each fiscal year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view 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 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 (FRS102);
- make judgments and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the Trust and 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.
## **Disclosure of information to auditor**
Each of the persons who are trustees at the time when this trustees' report is approved has confirmed that:
- so far as the trustees are aware, there is no relevant audit information of which the Trust's auditors are unaware, and
- the trustees have taken all reasonable steps that ought to have been taken as trustees in order to be aware of any information needed by the Trust's auditors in connection with preparing their report and to establish that the Trust's auditors are aware of that information.
In preparing this report, the trustees have taken advantage of the small companies’ exemptions provided by section 415A of the Companies Act 2006.
This report was approved by the trustees on 23 June 2023 and signed on their behalf by:
**T. Hoppe Chair of Trustees**
Page 19
**SCOTTS PROJECT TRUST (A company limited by guarantee)**
## **INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF SCOTTS PROJECT TRUST**
## **Opinion**
We have audited the financial statements of Scotts Project Trust (the ‘charitable company’) for the year ended 31 March 2023 which comprise the statement of financial activities, balance sheet, 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, 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:
- give a true and fair view of the state of the charitable company’s affairs as at 31 March 2023 and of its incoming resources and application of resources for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 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 Auditor’s 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 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.
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.
Page 20
## **SCOTTS PROJECT TRUST**
## **(A company limited by guarantee)**
## **INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF SCOTTS PROJECT TRUST**
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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 trustees’ report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the directors’ report included within the trustees’ report 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 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 2006 requires us to report if, in our opinion:
- adequate 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 directors’ report and from the requirement to prepare a strategic report.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement on page 18, the trustees (who are also the directors of the charitable company for the purposes of company law) 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.
Page 21
**SCOTTS PROJECT TRUST (A company limited by guarantee)**
## **INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF SCOTTS PROJECT TRUST**
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.
## **Auditor’s 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 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
We obtained an understanding of the legal and regulatory framework applicable to the preparation of the financial statements of the charity, and the procedures that management adopt to ensure compliance. We have considered the extent to which non-compliance might have a material effect on the financial statements, and in particular we identified: the Companies Act 2006, FRS 102, and the Charities SORP.
We have also identified other laws and regulations that do not have a direct effect on the amounts or disclosures within the financial statements, but for which compliance is fundamental to the charity’s operations and to avoid material penalties, including General Data Protection Regulation (GDPR), Care Quality Commission regulatons, employment law, and health and safety.
Having reviewed the laws and regulations applicable to the charity, we designed and performed audit procedures to obtain sufficient appropriate audit evidence. Specifically, we:
-
- Selected a team with sector experience to perform the audit;
- Obtained an understanding of the charity’s procedures for ensuring compliance with laws and regulations;
-
- Obtained and reviewed internal policy and procedure documents;
- Made enquiries of management and the trustees regarding whether they were aware of any actual or suspected incidences of non-compliance with laws and regulations;
-
-
-
- Obtained and reviewed meeting minutes;
- Reviewed legal expenses accounts for indications of any possible non-compliance; and
- Reviewed the completeness and accuracy of any disclosures made in the financial statements.
We assessed the susceptibility of the charity’s financial statements to material misstatement, including considering how fraud might occur. This was performed by:
Page 22
**SCOTTS PROJECT TRUST (A company limited by guarantee)**
## **INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF SCOTTS PROJECT TRUST**
- Making an assessment of the charity’s control environment, systems and controls including identifying any weaknesses and considering the risk of management override of controls;
- Assessing the susceptibility of the charity’s financial statements to material misstatement, including considering how fraud could occur;
- Considering whether there are any incentives or opportunities for management to manipulate financial results;
- Obtaining and evaluating the trustees’ assessment of the risk of fraud, and enquiring as to whether they are aware of any actual or suspected incidences of fraud;
- Reviewing the accounting policies and accounting estimates for signs of management bias; and
- • Identifying key risks relating to irregularities including revenue recognition including fraud, management override of controls, debtor overstatement, misstated restricted funds, and capital expenses not being capitalised.
We then designed audit procedures in response to the risks identified, including performing substantive testing on all material income streams, tracing post year receipts to confirm debtor recovery, reviewing journal entries for signs of management bias or override of controls, reviewing a sample of restricted income/expenditure to ensure the restrictions were correct, and reviewing property expense codes for uncapitalised capital expenses.
The audit has been planned and performed in in accordance with auditing standards, however, because of the inherent limitations of audit procedures there remains a risk that we will not detect all irregularities, including those that may lead to material misstatements in the financial statements. There are inherent difficulties in detecting irregularities, and irregularities that result from fraud may be more difficult to detect than irregularities that result from error, for example due to concealment, override of controls, collusion or misrepresentations. In addition, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less audit procedures are able to identify it.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Page 23
**SCOTTS PROJECT TRUST (A company limited by guarantee)**
## **INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF SCOTTS PROJECT TRUST**
## **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. Our audit work has been undertaken so that we might state to the charitable company’s members 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 and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
**Jonathan Healey BA FCA** (Senior statutory auditor) for and on behalf of
## **Lindeyer Francis Ferguson Limited**
Chartered Accountants Statutory Auditors North House 198 High Street Tonbridge Kent TN9 1BE Date: 3 July 2023
Page 24
## **SCOTTS PROJECT TRUST**
## **(A company limited by guarantee)**
## **STATEMENT OF FINANCIAL ACTIVITIES** _**(incorporating income and expenditure account) FOR THE YEAR ENDED 31 MARCH 2023**_
|**Notes**
**Income from:**
Donations, grants and legacies
**2**
Charitable activities
**3**
Other trading activities
Events
Delarue Hall hire
Investments
**Total**
**Expenditure on:**
Raising funds
**4**
Charitable activities
**4, 5, 6**
**Total**
**Net income**
Transfers between funds
**12**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**
**12**|_Restricted_
_funds_
_2023_
_£_
7,942
-
-
-
-
7,942
-
28,524
28,524
( 20,582)
( 25,588)
**( 46,170)**
124,816
**78,646**|_Unrestricted_
_funds_
_2023_
_£_
17,718
1,884,075
92
9,834
25,026
1,936,745
9,885
1,833,914
1,843,799
92,946
25,588
**118,534**
4,529,078
**4,647,612**|_Total_
_funds_
_2023_
_£_
25,660
1,884,075
92
9,834
25,026
1,944,687
9,885
1,862,438
1,872,323
72,364
-
**72,364**
4,653,894
**4,726,258**|_Total_
_funds_
_2022_
_£_
134,156
1,739,210
-
1,645
3,200|
|---|---|---|---|---|
|||||1,878,211|
|||||12,019
1,730,506|
|||||1,742,525|
|||||135,686
-|
|||||**135,686**
4,518,208|
|||||**4,653,894**|
Page 25
## **SCOTTS PROJECT TRUST**
## **(A company limited by guarantee)**
## **BALANCE SHEET** _**AS AT 31 MARCH 2023**_
|**Notes**
**Fixed assets**
Tangible assets
**9**
**Current assets**
Debtors
**10**
Short term cash deposits
Cash at bank and in hand
**Liabilities**
Creditors: amounts falling due
within one year
**11**
**Net current assets**
**Net assets**
**The funds of the charity**
Restricted funds
**12**
Unrestricted funds
**12**|_£_
137,355
1,726,990
526,222
2,390,567
( 148,510)|_2023_
_£_
2,484,201
2,242,057
**4,726,258**
78,646
4,647,612
**4,726,258**|_£_
70,920
2,010,927
157,400
2,239,247
( 153,248)|_2022_
_£_
2,567,895
2,085,999|
|---|---|---|---|---|
|||||**4,653,894**|
|||||124,816
4,529,078|
|||||**4,653,894**|
Approved by the board of trustees on 23 June 2023 and signed on its behalf by:
T Hoppe **Chairman**
## **Company registration number: 03143819**
Page 26
## **SCOTTS PROJECT TRUST**
## **(A company limited by guarantee)**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**Notes**
**Cash flows from operating activities:**
Net cash provided by operating activities
**A**
**Cash flows from investing activities:**
Purchase of tangible assets
Net cash used in investing activities
Change in cash and cash equivalents for the year
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
**Cash and cash equivalents comprise:**
Short term deposits
Cash at bank and in hand
**NOTE TO THE STATEMENT OF CASH FLOWS**
**A**
**Reconciliation of net income to net cash flow from operating**
**activities**
Net income for the year
_As per statement of financial activities_
**Adjustments for:**
Depreciation charges
(Increase) / decrease in debtors
(Decrease) / increase in creditors
**Net cash provided by operating activities**|**_2023_**
**_£_**
110,000
( 25,115)
( 25,115)
84,885
2,168,327
2,253,212
1,726,990
526,222
2,253,212
72,364
108,809
( 66,435)
( 4,738)
110,000|**_2022_**
**_£_**
346,742
( 32,679)|
|---|---|---|
|||( 32,679)|
|||314,063
1,854,264|
|||2,168,327|
|||2,010,927
157,400|
|||2,168,327|
|||135,686
117,967
90,095
2,994|
|||346,742|
Page 27
**SCOTTS PROJECT TRUST (A company limited by guarantee)**
**NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **1 Accounting policies**
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
## **1.1 Basis of preparation**
The financial statements have been prepared in accordance with "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) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Scotts Project Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
There are no material uncertainties about the charity's ability to continue, and so the going concern basis of accounting has been adopted. The financial statements are presented in Pounds Sterling, and are rounded to the nearest pound.
## **1.2 Company status**
Scotts Project Trust is a charitable company limited by guarantee incorporated in England and Wales. The address of the registered office is Scotts Office, Delarue Close, Tonbridge, Kent TN11 9NN. The members of the company are the trustees named on page 1. The Trust is controlled equally by the trustees. In the event of the Trust being wound up, the liability in respect of the guarantee is limited to £1 per member of the Trust.
## **1.3 Income**
Income from donations and grants (including government grants) is recognised when the charity is entitled to the funds, the receipt is probable and the amount can be measured reliably. For donations, this is usually on receipt. For grants, this is usually when a formal offer is made in writing, unless the grant contains terms and conditions outside of the charity's control which must be met before the charity is entitled to the funds.
In-kind support is recognised when the charity is entitled to the donated goods, the amount can be measured reliably, and the receipt is probable. Donated goods are measured at market value.
Page 28
**SCOTTS PROJECT TRUST**
**NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **(A company limited by guarantee)**
## **1 Accounting policies (continued)**
Income from charitable activities is recognised to the extent that the charity has provided the contracted services. Income received in advance of the provision of services is deferred on a time basis until such time as the services have been performed.
Income from trading activities is recognised once the event or hire period has been completed. Income received in advance of the provision of services is deferred on a time basis until such time as the services have been performed.
Income tax recoverable in relation to donations received under Gift Aid is recognised at the time of the donation.
## **1.4 Expenditure**
Expenditure is recognised when a present legal or constructive obligation exists at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefits will be required to settle the obligation, and the amount can be measured or estimated reliably.
Expenditure is stated gross of irrecoverable VAT and has been classified under headings that aggregate all costs related to the category.
Staff costs have been allocated to expenditure headings on the basis of an estimate of the amount of time spent by staff members in each area.
The charity currently has three activities: the residential home - St. Peter's Row, Supported Independent Living houses - Oaks and Willows, and Day Services. Direct costs are allocated against these activities and support costs have been apportioned across the activities based on the proportional use of the cost by each activity.
Expenditure on raising funds includes those costs incurred in seeking donations and does not include the costs of disseminating information in support of the charitable activities. Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include governance costs in connection with administration of the company and compliance with constitutional and statutory requirements.
Page 29
**SCOTTS PROJECT TRUST**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **1 Accounting policies (continued)**
## **1.5 Tangible fixed assets and depreciation**
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated realisable value of each asset over its expected useful life, as follows:
Freehold property 2% on cost Land not depreciated Motor vehicles 20% on cost Fixtures & fittings 15% on cost Computer equipment 33.33% on cost
## **1.6 Debtors**
Fees receivable are recognised at the settlement amount due. Prepayments are recognised at the invoiced cost prepaid.
## **1.7 Cash and cash equivalents**
Cash and cash equivalents includes cash in hand, deposits held at call with banks and other short-term cash deposits included in current assets.
## **1.8 Creditors**
Creditors are recognised when a present legal or constructive obligation exists at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefits will be required to settle the obligation, and the amount can be estimated reliably. Creditors are recognised at their settlement value.
## **1.9 Financial instruments**
The charity only has financial instruments 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.
Page 30
## **SCOTTS PROJECT TRUST**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **1 Accounting policies (continued)**
## **1.10 Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the Trust and which have not been designated for other purposes.
Designated funds are unrestricted funds designated by the trustees for particular purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Trust for particular purposes. The aim and use of the restricted funds is set out in the notes to the financial statements.
## **1.11 Pensions**
The Trust operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Trust to the fund in respect of the year.
## **1.12 Taxation**
The charity is exempt from Corporation Tax on its charitable activities.
## **2 Income from donations, grants and legacies**
|**Income from donations, grants and legacies**|||
|---|---|---|
|Donations and grants
Legacies
Government grants|_2023_
_£_
25,660
-
-|_2022_
_£_
100,705
7,929
25,522|
||25,660|134,156|
Donation income in the year includes restricted income of £7,942 (2022: £93,930).
Page 31
## **SCOTTS PROJECT TRUST**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **3 Income from charitable activities**
|Residential home fees
Allocated to Day Services
Supported living fees and rental income
Day Services fees
**4**
**Expenditure**
**_Expenditure on raising funds_**
For donations and events
Wages and salaries (Note 7)
National insurance (Note 7)
Pension cost (Note 7)|_2023_
_£_
1,200,913
( 19,333)|_2022_
_£_
1,114,435
( 27,791)|
|---|---|---|
||1,181,580
307,909
394,586|1,086,644
298,948
353,618|
||1,884,075|1,739,210|
||_2023_
_£_
1,464
7,918
266
237|_2022_
_£_
693
10,740
314
272|
||9,885|12,019|
Expenditure for restricted funds in the current period was £Nil (2022: £Nil).
## _**Expenditure on charitable activities**_
|Residential home
Supported living
Day Services|_Direct_
_costs_
_2023_
_£_
955,053
253,690
319,109|_Support_
_costs_
_2023_
_£_
154,260
70,066
110,260|_Total_
_2023_
_£_
1,109,313
323,756
429,369|_Total_
_2022_
_£_
996,486
328,268
405,752|
|---|---|---|---|---|
||1,527,852|334,586|1,862,438|1,730,506|
||_Note 5_|_Note 6_|||
Expenditure for restricted funds in the current period was £28,524 (2022: £43,424).
Page 32
## **SCOTTS PROJECT TRUST**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **5 Direct costs**
|Wages and salaries (Note 7)
National insurance (Note 7)
Pension cost (Note 7)
Food and household
Establishment
Other direct costs
Profit on disposal of fixed assets
Depreciation
**Support costs**
Wages and salaries (Note 7)
National insurance (Note 7)
Pension cost (Note 7)
Other support costs
Legal and professional
Governance costs:
Auditors' remuneration for audit and other services
Administration and secretarial|_Total_
_2023_
_£_
1,067,350
73,005
21,246
34,249
155,993
67,245
( 45)
108,809|_Total_
_2022_
_£_
1,000,934
69,094
19,702
29,602
143,679
46,877
-
117,967|
|---|---|---|
||1,527,852|1,427,855|
||_Total_
_2023_
_£_
236,322
20,765
4,401
44,892
18,822
9,384
-|_Total_
_2022_
_£_
220,586
19,996
3,870
33,204
17,700
7,260
35|
||334,586|302,651|
## **6 Support costs**
Page 33
## **SCOTTS PROJECT TRUST**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **7 Staff costs**
|**Staff costs**|||
|---|---|---|
|Wages and salaries
Social security costs
Pension costs|_2023_
_£_
1,311,590
94,036
25,884|_2022_
_£_
1,232,260
89,404
23,844|
||1,431,510|1,345,508|
The average monthly number of full-time equivalent employees during the year was as follows:
|Residential home
Supported living
Day Services
Finance and administration
Maintenance
Governance
Fundraising and marketing|_2023_
_No._
23
5
9
3
2
1
1|_2022_
_No._
21
5
8
3
2
1
1|
|---|---|---|
||44|41|
The average monthly number of employees based on headcount during the year was 76 (2022:75).
Key management personnel comprise the trustees listed on page 1 and the senior management team listed on page 2. The total remuneration, including employers' national insurance and pension contributions, of key management personnel was £202,551 (2022: £194,353). No remuneration was paid to the trustees.
No employee received remuneration amounting to more than £60,000 in either year.
Page 34
## **SCOTTS PROJECT TRUST**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**8**|**Net income**|||
|---|---|---|---|
|||_2023_|_2022_|
|||_£_|_£_|
||This is stated after charging/(crediting):|||
||Depreciation of tangible fixed assets|108,809|117,967|
||Auditors' remuneration|8,084|6,080|
||Auditors' remuneration - non-audit|1,300|1,180|
||Pension costs|25,884|23,844|
During the year, no trustees received any benefits in kind (2022: £Nil). During the year, no trustees were reimbursed for office expenses (2022: £Nil).
## **9 Tangible fixed assets**
|**Cost or valuation**
At 1 April 2022
Additions
Disposals
At 31 March 2023
**Depreciation**
At 1 April 2022
Charge for the year
Depreciation on disposal
At 31 March 2023
**Net book value**
At 31 March 2023
At 31 March 2022|_Freehold_
_property_
_£_
3,192,015
-
-|_Motor_
_vehicles_
_£_
79,395
-
-|_Furniture_
_fittings and_
_equipment_
_£_
760,081
25,115
( 82,651)|_Total_
_£_
4,031,491
25,115
( 82,651)|
|---|---|---|---|---|
||3,192,015|79,395|702,545|3,973,955|
||796,184
51,723
-|62,676
9,964
-|604,736
47,122
( 82,651)|1,463,596
108,809
( 82,651)|
||847,907|72,640|569,207|1,489,754|
||2,344,108|6,755|133,338|2,484,201|
||2,395,831|16,719|155,345|2,567,895|
Freehold property includes £600,000 in respect of land which is not depreciated.
Page 35
## **SCOTTS PROJECT TRUST**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **10 Debtors**
|**Debtors**|||
|---|---|---|
|Fees receivable
Prepayments and accrued income|_2023_
_£_
64,525
72,830|_2022_
_£_
24,219
46,701|
||137,355|70,920|
## **11 Creditors: amounts falling due within one year**
|**Creditors: amounts falling due within one year**|||
|---|---|---|
|Accounts payable
Other taxation and social security
Accruals and deferred income
Other creditors|_2023_
_£_
49,813
26,530
65,234
6,933|_2022_
_£_
33,502
28,810
82,026
8,910|
||148,510|153,248|
Accruals and deferred income includes deferred income of £27,402 (2022: £45,143) for fees due in the next financial year.
The movement on deferred income is as follows:
|Balance at 1 April 2022
Released to income
Received in the year and deferred
Balance at 31 March 2023|_2023_
_£_
45,143
( 45,143)
27,402|_2022_
_£_
590
( 590)
45,143|
|---|---|---|
||27,402|45,143|
Page 36
## **SCOTTS PROJECT TRUST**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **12 Statement of funds**
|**Statement of funds**||||||
|---|---|---|---|---|---|
|Unrestricted funds:
Fixed asset designated funds
Designated project funds
General funds
Restricted funds
Restricted welfare funds|_At 1 April_
_2022_
_£_
2,567,895
1,050,000
911,183|_Incoming_
_resources_
_£_
-
-
1,936,745|_Resources_
_expended_
_£_
( 108,809)
-
( 1,734,990)|_Transfers_
_in/out_
_£_
25,588
150,000
( 150,000)|_At 31 March_
_2023_
_£_
2,484,674
1,200,000
962,938|
||4,529,078
124,816
-|1,936,745
7,942
-|( 1,843,799)
( 28,224)
( 300)|25,588
( 44,592)
19,004|4,647,612
59,942
18,704|
||4,653,894|1,944,687|( 1,872,323)|-|4,726,258|
The restricted funds carried forward at 31 March 2023 relate to grants and donations for capital or other specified projects and the Welfare Fund of £18,704 (2022: £19,004), to be used on the general welfare of service users and staff.
The transfer of £25,588 (2022: £18,277) from restricted reserves to general funds represents expenditure on capital projects out of donations received in prior years, which the donors have specified must be used for the Trust's capital expenditure programme.
Transfers from the general funds to the fixed asset designated fund in both the current and prior year represent the movements on fixed assets. The net transfer from general funds also includes a transfer of £150,000 to designated project funds. The designated project funds are detailed in the Trustees' Report under 'Reserves'.
|_Prior year_
Unrestricted funds:
Fixed asset designated
projects and general funds
Designated project funds
General funds
Restricted funds|_At 1 April_
_2021_
_£_
2,653,183
800,000
990,715|_Incoming_
_resources_
_£_
-
-
1,784,281|_Resources_
_expended_
_£_
( 117,967)
-
( 1,599,411)|_Transfers_
_in/out_
_£_
32,679
250,000
( 264,402)|_At 31 March_
_2022_
_£_
2,567,895
1,050,000
911,183|
|---|---|---|---|---|---|
||4,443,898
74,310|1,784,281
93,930|( 1,717,378)
( 25,147)|18,277
( 18,277)|4,529,078
124,816|
||4,518,208|1,878,211|( 1,742,525)|-|4,653,894|
Page 37
## **SCOTTS PROJECT TRUST**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **13 Analysis of net assets between funds**
|**Analysis of net assets between funds**|||||
|---|---|---|---|---|
|Tangible fixed assets
Current assets
Creditors due within one year|_Restricted_
_funds_
_2023_
_£_
-
78,646
-|_2023_
_£_
2,484,201
2,311,921
( 148,510)
_Unrestricted_
_funds_|_Total funds_
_2023_
_£_
2,484,201
2,390,567
( 148,510)|_Total funds_
_2022_
_£_
2,567,895
2,239,247
( 153,248)|
||78,646|4,647,612|4,726,258|4,653,894|
In the previous year restricted funds of £124,816 were included in current assets.
Free reserves as noted in the trustees' report comprise unrestricted, undesignated current assets and creditors due within one year.
## **14 Pension commitments**
The Trust operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Trust in an independently administered fund. The pension cost charge, representing contributions payable by the Trust to the fund for 2023 was £25,884 (2022: £23,844).
## **15 Related party transactions**
There were no related party transactions in the year.
Page 38