THE ROYAL SCOTTISH CORPORATION THE SCOTTISH HOSPITAL OF THE FOUNDATION OF KING CHARLES II (OPERATING AS'SCOTSCARE") REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Charity Number.. 207326
THE ROY AL SCOTTISH CORPORATION THE ScOlSH HOSPITAL OF THE FOUNDATION OF KING CHARLES 11 REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 Mareh 2023 CONTENTS Page Reference and administrative infonnation Chairn)an's introduction Highlights 2022 tLI 2023 Trustees, report Independent auditors, report 16 Statement of financial activities 19 Balance sheet 20 Cash flow statement Notes to the financial statements 22
THE ROYAL SCOTTI.8H CORPORATION THE SCOTTISH HOSPITAL OF THF, FOUNDATION OF KING CHARLES 11 REFERENCE AND ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED 31 MARCH 2023 Patron: His Majesty King Charle5 111 Prineipal Office: 22 City Road, Loiidon, EC I Y 2AJ Viec Presidents: Stuart Steele P.J.M. Scott (resigned November 2022} Treasurer C. Somerville Tru5tee5: Elected Members of the Committee of Managernent: J. Chestnut Ichairnjan) D. Guild J. Grieve B. Griffin P.J.M. Scott J. Harvie J. Cadzow-collins K. Lynch (Vice Chair) C. Mccahon W. Gilmore D. Mcmurtrie C. Ross F. Oram S. Jemiyn R. Brown E. Close (resigned July 2022) (resigned NoveTnber 2022) Iresi¥ned ApTiI 2023) {appointed April 2023) {resigned April 2023) (appointcd April 2023) (appointed April 2023) (appointed October 2022) In addition the Treasurer and Honorary Solicitor are Trustees and Members of the Committee of Managemeni. Other A ointments: Chief Executive and Secretary: Shona Fleming Honorary Chaplain: The Reverend Angus MacLeod The Reverend Scott Rennie Honorary Piper PEpe Major J. McLucas
THE ROYAL.%COTTISH CORPORATION THE SCOTTISH HOSPITAL OF THE FOUNDATION OF KING CHARLES II REFERENCE AND ADMINISTRATIVE INFORMATION (continued) FOR THE YEAR ENDED 31 MARCH 2023 Auditors.. Haysmacintyre LLP 10 Queen Street Place London EC4R IAG Honorary Solieitor: Danny Tsang Simmons & Simmons LLP CityPoint One Ropemaker Street London EC2Y 9SS Bankers: The Royal Bank of Scotland plc I, Fleet Street, London EC4Y IBD lrtvestment Advis¢r'. Sarasin & Partners LLP 100 St Paul's Churchyard London EC4M 8BU
THE ROYAL SCOTTISH CORPORATION THE SCOTTISH HOSPITAL OF THE VOUNDATION OF KING CHARLF.S 11 CHAIRMAN'S INTRODUCTION FOR THE YEAR ENDED 31 MARCH 2023 Dear Friends, l am privÉleged to be able to present our Annual Report and Financial Statements for the year ended 31 March 2023. Our mission is to help Scots in need within the Greater London area in a variety of ways, depending on assessed Reed.. housing, health {physical and mental}, advocacy, financial grants, training, housing advice. volunteer prograTnn]e, career coaching, ¢ounselling, respite holidays and social events. Whilst continuing our support to older people and working age adults we have increased our loclls on 5UPPOrting children and families, the objective being to stop the cycle of poverty. low educational attainment and unemployment. The charity continues to be strong and stsble, testament to the dedication and hard work of our very capable team led by our Chief Executive Shona Fleming. After some years of Covid disruption this year has been a year of clear and Consistent perfomance within th¢ stTategic framework agreed with the board and significant success was achieved in areas such as advocacy, counselling, psychotherapy and activity holidays. Our three sheltered housing 51te5 provide 96 flats in total.. 48 in Lewisham, 28 in Barnet and 20 in Wimbledon. Continuing to increase awareness of Scotscare is critically important and this has continued with our podcast series, social media. traditional media, pitch side banners at sporting events, presence at events and ctsntacts through the Scotscare Ambassadors Club. In the Trnstee5' Report you will see details of the extensive and varied work done by our staff of 23 and our volunteer group of 55. Our CEO and her team are proactive, energetic and flexible and we aFe fortunate to have such a body of impressive people. Thank you to everyone. On l April 2023 our slster chariry New Border]ne m¢Tged into Scotscare to provide a one stop shop for vulnerable Scots in London. Borderline's focus on the hotneless is now integrated into the Scotscare offering under one banner and provides a moTe economic, effective and efficient delivery of client services. As a body of trustees this fmancial year saw the conclusion of our project to modernisc our Constitution when our updated Royal Charter received the seal of Her Majesty Queen Elizabeth 11, and also tho project to merge ScotsCaTe and New BorderSine. As part of the latter project we were delighted to welcome three New Borderline trustees onto the Scotscwe board in April 2023. Thank you to all my fellow trustees for their dedication and hard work. Thank you also to all who generously donated to S¢otsCare during the year, whether funds or time and talents, you are critical to our mission. James Chestnut Chairman
HIGHLIGHTS 2022 TO 2023 95% 445 children awarded clothing grants totalling £67,150 d kn(Y•Aedge d comp8tgn of Staff was excellent or A total of 1003 grants were awarded to clients 517 COtsnlIIn9 sesslons 88 children's activity grants awarded, totalling £43,515 Over 400 years of Scotscare in L4unched d & alcohol misl ¢ounsellln servi Advocacy resulted in 90 clients receiving back payments totalling £300,000 over last 5 years Nearly 36% of support applications made in online portal 0% Increase in Linkedln lollowers Scotscare podcast launched, 25 episodes and 1400 downloads The charity for Scots In London 24 student rants provld iotalllng £45,333 94% success rate in accessing services with Advocacy Tosldents ID 6heftered 89% 95% 95 of clients either very satisfied or satisfied with their experience of ScotsCare'$ services sald S¢otsC helped impr thelr slandard living 74,100 minutes ol Blether Buddies speaking with clients ouse families whkh Included 95 hildren took part In PGL holidays grants were awarded to ¢llents In th• year
THE ROYAL ScOlSH CORPORATION THE SCOTTISH HOSPITAL OFTHE FOUNDATION OF KING CHARLES 11 TRUSTEES, REPORT FOR THE YEAR ENDF.D 31 MARCH 2023 The Royal Scottish Corporation ("the Corporation") is the working natne of the Scottish Hospital of the Foundation of King Charles 11. It operatc.% under the name Scoiscare and 15 registeTed with the Charity Commission for England and Wales - registration nuniber 207326. Our application for registration with the Office of the Scottish Charity Regulator {08CR) was granted in August 2023 registFation number SC052739. Details of the principal offi¢e, Trustees. Chief Executive and prin¢ipal advisers ean be found in the Teference and administrative infomiation section on pages l and 2. The Trustees present their report and the audited Financial Statements for the year ended 31 March 2023, which have been prepared in accordance with the provisions of the current StsteTnent of Re¢ommended Practice Accounting and Ret)orting by Charities and the relevant accounting standard5. Governin Document The Corporation is governed by Royal Charters of 1665, 1676, the Charter of Reincorporation of 1775, as amended in 1974, 1982 and 2022 and by Bye-Laws, which were last amended in July 2022. Our new Royal Charter was duly approved by the pri Council wilh Her Majesty Queen Elizabeth 11 in Council in March 2022 and took legal effect when it was electronically sealed on l August 2022. ointment and InduetioM of Trustees As provided in the Charter and Bye-Laws, there is one Annual General Court each year. The Committee of Management, as charity trustees for the purposes of the Charities Act 2011, have control of the Corporation and its property and fvnds. The ComTnittee of Management shall elect no fewer than fsve nor moFe than 14 members including the Treasurer and the Honorary Solicitor, and each serve for a period of ihree years. One-third (or the number nearest one-third) of the Elected Members must retire at the Committee Meeting immediately preceding each Annual General Court, Subject to Bye-Laws 5.7 and 7.1. a retiring Elected Metnber shall be elsgible for re- ele£tion for consecutive periods not exceeding aggregate nine years from the date of his or heT original appointment but thereafter an Elected Member shall not be eligible for re-appointment until one year after his or her retirement. The Committee of Management has established a Nominations Sub-committee which shall from time to time put forward and recommend to the ComTnittee of Management candidates for election a5 Elected Members. Trustees are required to attend two meetings of th¢ Committee of Management and a selection of the Sub Committees preceding their election. Regard is given to the skills and expeTience of the potential trustee and that required by the Charity. On appointment, each trystee is required to undertake an induction which includes reviewing infom)ation about the charity includinbj its governing document. strategy, finances, Stag StructUTe, risk register and briefings from staff on the work of the organisation. Their attention is drawn to relevant Charity CoTnmi5sion guidance, including The ChèTity Governance Code.
TIIE ROYAL SCOTTISH C.ORPORATION TIIE sco]SH HOSPITAL OTr 'I'HE FOUNDATION OF KtNG CHARLES 11 TRUSTEES. REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2023 Or anisation The Committee of Management meets quarterly and can appoint sub-committees to discuss and make recommendations on more detailed aspects of strategy and policy. There are currently five sub-committees.. the Audit, the Investment. the Welfare, the Communications and the Nominations sub-committees. The Chief Executive is appointed by the Trustees to manage the day-to-day operations of the Charity. The Chief Executive has delegated authority, within the terms prescribed by the Trust¢¢s, for operational, fart¢e and service delivery related activity. Ke Mana ement The Chief Executive and the Committee of Management (unpaid Trustee5) make up the organisation's key management. The Chief Exeeutive's salary 55 based on an annual pay and appraisal systeEn set by the Committee of Management. Trustees, Res onsibilitie5 and Risk Mana emenl The Trustees 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). The law applicable lo charities in England and Wales requires the Trustees to prepare fancial 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 of the chaTity for that period. In preparing these financial statements, the Trustees are required to.. select suitable accounting policies and apply them consistently., observe the methods and principles in the Charities Statement of Recommended Practice {SORP)' make judgements and estimates that are reasonable and prudent. state whether applicable Accounting Standards and SORP have been followed, Subject to any departures disclosed and explained in the financial 5tatements,' and, prepare the financial statements on the going concern basis unless It 15 inappropriate to a55ume that the Charity will be able to continue in operation. The Tru5tee5 are responsible for maintaining proper accounting records which disclose with reasoRable accuTacy at any time the financial position of the charity and to enable thetn to ensure that the accounts comply with the Chap'illes Aci 2011, the Chai'ity (Accoynt5 and Reporls) Regtslulions 2008., and the provisions of the Royal Chaiters and Bye-Laws. They are also Tesponsible for safeguarding the assets of the charity and hence for taking reasonable steps for the preveption and detection of fraud and other irregularitie5. We have overall responsibility for.. keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the Corporation and the funds held in trust; establishing and monitoring a system of internal control. ensuring that the Financial Statements ¢omply with applicable law and regulations,. and, establishing aTTangeinents for safeguarding the assets of the Cgrporation and taking reasonable steps for th¢ prevention and detection of fraud and other irr¢gularities. The systems of internal control are designed to mitigate risk and include a strategic plan, regular consideration by the Committee of Management of the actual results Compared to budget and any variances arising. formal written policies and procedures and detailed tems of reference for Sub Committ¢¢s.
THE ROYAL SCOTTISH CORPORA TION THE SCOTTISH HOSPITAL OF THE FOUNDATION OF KING CHARLES 11 TRUSTEES, REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023 Detailed consideration of the Tisks to which the Corporation is exposed is delegated to thc Audit Syb-committee. which is assisted by the management teaTn. While it is not possible to fully miti&iate the risk, through established risk management processes, we are Satisfied those systems and procedures are in place to manage the risks identified while recognising that these systems can only provide reasonable and not absolute assEJraR¢e. The key risks to which the Charity is exposed are the 1055 of investment income, the resignation or ill health tsf the CEO and the health and safety of staff. The Trustees have borne the investment income risk in mind when detemiinin¥ the level of free reserves and regularly review our reserves policy. The management of S¢otsCare's investment is undertaken by professional investment advisors. Our CEO mana¥e5 a 5tron¥ senior management team with the appropriate skills and experience to manage the day io day operations should there be a loss of key staff. In relation to the health and safety of the charity's employees, Ihe charity follows the relevant and current guidance and has the appropriate rssk assessments in place. Furthermore, the Charity considers its staff may be at personal risk when working with Client5 and interview rooms have been designed to mitigate this risk, together with appropriate Written procedures and a lone working alert system (Look Out Call) for staff to use and follow when workit]g outside the office. Related arties None of the trustees receives remuneratitsn or other benefits from their work with the charity. Trustees are invited to declare any relevant interests at each btsaTd meeting and are formally requested to submit an annual related party and ¢onflicts of interest fom. Board members have Teported tTansactions with related parties within note 23. ualit and diversit We are committed to equality and diversity at S¢otsCare and ensure that within the framework of the law that our workplace is free from unlawful or unfair discrimination because of protscted characteristics as defined by the Equality Act 2010. AII employees are provided with a copy of our policy as part of their induction process and are expe¢ted to abide by it. Failure to do 50, resulting in discrimination, can be treated as gross misconduct. This policy applies both to behaviour in the workplace and recFUitFnent practices. We are engaged in monitoring at board and staff level equality and diversity within the organisation. Strate Scotscare has provided support to Scots and their families in London for over 400 years. Our strategy 5et5 Out our objectives for three priority Clients.. children and families; older people and working age adults. Royal Charter The objects of the Corporation shall be for the public benefit to relieve either generally or individually persons resident or found within a radius of 35 miles of Charing Cr05s who are in conditions of need, hardship OT distress in such ways that are charitable in law, being PeTsons who were born in Scotland or persons one of whose paTents in ea¢h case was bom in Scotland or widows, widowers and survivors of civil parmerships of persons who were born in Scotland or widows, widowers atjd 5urvivor5 of civil partnerships of persons one of whose parents in each case was born in Scotland. Visio Our vision is an end to the cycle of deprivation experienced by Scots atjd their families living within a 35-mile radius of Charing Cross. Purpose Oui purpose ig to provide financial, practical, and elnotional support to Scots and their families living within a 35-mile rddius of Charing Cross.
THL ROYAL SCOTTISH CORPORATION THL SCOTTISH HOSPITAL OF THE FOUNDATION OF KING CHARLES 11 TRUSTEES. REPORT (conlinuedl FOR THE YEAR ENDED 31 MARCH 2023 Values Our values are that we are a earing, progressive, and effective organisation. Caring To provide a high quality of support to Scots and their families. Progressive Listeningttsthe needs of our beneficiaries and Tespondingto that need in a way that breaks the Cycle of deprivation. Effective Good governance, partnership working and investment in our people is key to our success. Our elienls ScotsCaTe a5SlSts Seots and their families who are in need of fancIal, practical, and emotional assistance. The organisation delivers a grant giving progTamme that sits alongside personalised support servi¢es to clients that includes a needs led as5essTnent to provide direct services or signposting to specialist support sei'vices. Many of our clients have support needs over and above fitjancial assistance. Many are socially excluded from society and face a Combination of linked problems such as unemployment, poor skills, low incomes, poor housing, living in areas of high crime, bad health and family breakdown. These problems are linked and mutually reinforcing so that they can create a vicious cycle in people's lives. Our elients recesve state benefits or aTe on low incomes. generally without support networks, socially isolated and often unable to negotiate the public sector System, including the benefits system. A significant number of our clients have additional support needs such as mental and physical ill health, debt problem5 and issues around substance misuse. Our priority clients are.. Children and families Older people Working age adults Strategic objectives Children aDd families All fainilies can face difficult times. whethei. it's a paient witli a diagnosed mental health problem, substance misuse issues or poor housiiiu exacei'bated by long term poverty. We want to lielp faTnilie5 by providing sei'vices tliat will SUPPOTt them to address difficult situations that will improve the life chances and flltiire opportunities foi. tlieir cliildren. Our objectives will be to help Éhem: reduce the effects of poverty through fmancial assistance- have their voices hcaTd through advocacy on issues that are important to them. address the issues faced by children and families to improve their mental and physi¢al wellbeing. engage with training and employment opportunities,. and, ac¢es5 50cial, cultural, and edueational opportunities for their children. Older people Building a sense of conununity,. reducing social isolation and loneliness; proTnoting well-being and healthy living i5 all part of providing our client5 with services that are suited to their needs.
THF, ROYAL ScolSl CORPORATION THF, SCOTTISH HOSPITAL OF TIIE Tr'OUNDATION OF KING CHARLES II TRUSTEES, REPORT (eontinutd) FOR THE YEAR ENDED 31 MARCH 2023 Our objectives will be to help them: incTease theT indep¢nd¢n¢e within the community,. reduce their social isolation and lonelines5' access housing appropTiate to their needs,. increase their digital skills and knowledge; and, access SOC131 activities. Working age adults Providing access to training and job coaching support which rnoves individuals closer to employmeiit is an important aim of this strategy. Our experience is thai noi all clients can engage with these opportunities, but for those who can, we will provide access to tailored support. Our objectives will be to help them: identify baTriers to employment- engage with personalised job coaching; access grants for specific training or education cour5es,' and. move into employment. Support services To realise our strategic objectives w¢ will aim to provide.. All clients, as appropriate, with.. access to our helpline and walk-in service as the f51 point of contact,. individual assessment of need and benefit5 check. budgetin¥ advice and debt referral if appropriate; financial grdnts to PUTchase household items; advocacy., counselling; signposting to health and substance misuse services- housing advice. and, access to volunteering opportunitles. Children and families with.. job coaching and gTants for training. volunteer befrienders,. access to a programme of annual social events. access to our volunteering opportunities. childTen'5 clothing gnd activity grants,. and, Children and families activity holidays. Older people with.. assessment of need for Scotscare's sheltered housing,. programme of annual social events. volunte¢T befrienders. and, volunteer tech buddy programme. Working age adult5 With.. grants for training or study., alld, job coaching.
THE ROYAL SCOTTISH CORPORA'I'ION TIIE SCOTTISH HOSPITAL OFI'HE DOUNDATION OF KING CHARLES II TRUSTEES. REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023 Achi¢vements and Performance Publie Benefit The Trustees have had Tegard to the Charity Commission's guidance on public benefit during the year. The Charity meets the Public Benefit test set out by the Charity Commission by providing the following services.. sheltered housing on three sites ill London.. Grove Park in Lewisham,. Whetstone in Bamet., and Worple Road in Wimbledon. Residents must be over 55, or over 50 with a significant disability, to qualify lor our sheltered housing. an extensive menu of financial grants and regular tnonthly allowances., siipport services.. advocacy., psychotherapy, family sUPPQrt work and job ctsaching; signposting to other services ¥enerally' volunteering opportunities acT055 the organisation,. grants to help students and the unemployed who Tequire additional training before returning to work., and, n annual pro¥ramme of social events for fatnilies and older people. To qualify for any of the above, an applicant must be assessed by the Corporaiion's professional staff and have exhausted state or other welfare provision. The Corporation's staff as51Sts in this process by carrying out a benefits check to ensuTe the PToper take-up of state benefit entitlement as well as signposting to relevant services. Numbers of the members of th¢ public benefittiNg from our services 2022-23 2021-22 2020-21 Affordable housing Regular monthly allowance5 Financial grants Trained and supported volunteers Blether Buddies befriending project Number of people attending social events Helpline calls Student and training gTants Adults assessed for services Children benefitting froTn service5 Advocacy cases Counselling sessions 96 24 1.003 60 49 849 6,659 38 478 445 74 517 96 34 896 96 49 807 76 73 55 840 6,368 25 538 423 95 244 6,269 30 564 255 71 268 Detailed one-to-one assessments are carried out at the client's home, on the telephone or at our office on City Road. The assessment includes the collection of information that helps us to provide the tnost appropriate Services that tackle long- term deprivation. Our objective is to identify and achieve defined outcomes for each client, thu5 measuring and quantifying the impact we have on our client5, lives. This more focused approach has resulted in more grants and services to the most vulnerable of clients, and the itnpact of our intervention has been greater for most clients. 2022-23 2021_22 2020-21 Grant expenditure S l- cliildr¢n and farnili¢5 S2 4)Ider people S3- workillg age adults 261,160 71.277 131,909 190,445 75,314 95,709 194,337 63,526 94,179 Support 5ervice5 Psychotherapy Children and families, project Volunteer progr&rnm¢ Advocacy Social events 79.296 28.744 63,728 105,201 122.852 54,720 5.598 49,228 102,133 95,231 22,000 102,149 17.566 Total fi68 10
THE ROYAL sco]SH CORPORATION THE SCOTTISH HOSPITAL OF THE FOUNDATION OF KING CHARLES II TRUSTEES, REPORT {eontinued) FOR THE YEAR ENDED 31 MARCH 2023 Merger with Borderline The Royal Scottish Corporation {ScotsCare) and New Borderline (Borderline) merged on l April 2023 to provide a one stop shop for vulnerable Scots across London. Previously, the truste¢s had agreed in their respective strategies for 2019- 2022 to consider the potential for a merger. They are the only two ¢haritie5 in London with a specific focus on supporting the needs of Scots. Whilst Scotscare has a remit to address general need and Borderline was more specialist in their service to the htsTlleless, there was already a Service Level Agreement between the two charities for premises costs, management and staffing, and a proven smooth operaiional framework over the past 10 years. Th¢ aim of the merger between the eharities is to CTeate a single charity that is client focussed to use the financial and professional resources of both charities to ensure a more economic, effective. and efficient delivery of elient service5 and to remove the confusion that exist5 #mongst tnost of our stakeholders. On l April 2023 the as5et5 and liabilities of New Borderline (Registered Company number 06844151, Charity numbers 11286848 and SC044530) were transferred to Scotscare. Volunteer prograrnme Our volunteers provide significant support and assistance across the organisation. In total, OUT volunt¢ers provided 5.935 hours in various roles acros5 the organisation. We are fully COTllTnitted to providing our volunteers with the best training so that the organisation continues to benefit from their input. OveT the past year, our volunteers were able to fulfil the following roles.. Blether Buddy befriender (at home) Blether Buddy befriender (telephone) Tech Buddy Travel Buddy Rcception Monthly lunch clubs for over 50s Attendance at allnual client outings Administrative Communications team support Residents, coffee momings 19 30 10 30 40 Our volunteer programme, strongly led by our Volunteer Co-ordinator, has Eecome an integral part of the ScotsCaTe support service. In particular, our Blether Buddies provide 5UPPOrt to older people either on the phone OT Ill their hgm¢s and this significantly reduces social isolation. Many befriending relationships become a lifeline for isolated Scots, and it is testament to the commitment and loyalty of our volllnteers that we are able to impact the lives of $0 many.
THF. ROYAL SCOTTISII CORPORATION THE SCOTTISH HOSPITAL OF THE FOUNDATIOIY OF KING CHARLES II TRUSTEES, REPORT {continued) FOR THE YEAR ENDED 31 MARCH 2023 Monitorin d Evaluation In line with oiir Strategic objectives, we monitor and evaluate our work by using a theory of ¢hang¢ outcomes fratnework to track the progress of individual clients over the course of their involvement with us. These outcomes consideT a ran¥e of indicators and are reported to Trustees on a quarterly basis. Our client database and theory of change dashboard PTovide fvrther way5 to monitor, evaluate and report on our work. We continue to use a series of surveys developed to receive regular feedback from clients, tenants, and volunteers to measure satisfaction levels and areas for improvement or additional services. The purpose of these surveys is to help deteTmine future strategy and to as51St with tlie planning and itnprovement of specific services. The feedback also provEdes the necessary evidence of Scotscare's effe¢tivene5s and increases awareness of our services amollgst our beneficiaries. Raisin our rofile The itnportance of raising awarene55 throiigh our cornmunications is important to us if we are to reach more Scots in London who need our help. Our Communication5 Strategy for 2020-22 was developed to stren. then the brand identity and to ensure that we continue to communicate effectively internally and externally witli tlie appropriate key messages to our staff, volunteers, clients, and key stakeholders. It has been a 5ucce55ful year for brand awareness with the introduction of our podcast series. social media and pitch side banneTS at top level football and rugby events featurcd on Amazon Prime, Channel 4 and BBCI. The podcast serEes has been an excellent opportunity to raise awareness amongst a wider audience through carefully selected Scots fvom vaTIOUS professional and art15tic backgrounds. We introduced, foT the first time, a Scotscare Christmas card to Sell to help protnote awarenes5 Of the charity and the work we do. Seotscare Ambassadors Club Scotscare needs help to raise awareness of its work and to raise nds. Our ATnba5sadors play a vital role in representing the Charity amongst their personal and professional network, speaking about our work and the importance of the funds our supporters raise. The role involves our Ambassadors using their network of contacts in the business. commercial. political, and other sectOTS in and around London to increase awareness and support for Scotscare. We hope to expand the number of Ambassador5 over the coming year. Marketing 2nd Advert15ing We coiilinue to use the GP surgery and A&E leaflet distributioii service to raise awareness of ou. 5erviees. Our leafleis are now on display at 528 GP surgei'y aiid ho5Pltal waitints ai.eas across Loiidon. Adverts promtsiing OLir services have appeared in Camden New Journal, Islington Tribune, Westminster Extra, Haekney nd 151it]gton Gazettes, East London Adveitiser, Loiidoii Metro, Directions magazine - Community Services Ma¥azine, Caledonian Cliib magazine, What's On magazijie, South London rna&7azine, The South Londoiier, SouthwarL Neiv5pttper, The Coininuiiity NotiLeboard (Souihwark Newspaper also), Miiswell Flyer, Highgate Handbook, The N8 Cominunicator, N21 Directory, N14 Directory. The Bamet London EN4 and The N20 Co7e¢t1olI. To further eiihaiice our branding and overall e.xposure to more Scots, we had pitch side baniiers at the Natlolls Clip rugby gaines shown on Amazon Prime and Channel 4 hi(Thlights, extendiiig the reach of ilie banner being seeii in London and further afield. Kvent5 We returned io Pride in London with a stall in Soho Square in July. Over one million people attend Pride Day, a great opportunity to meet prospective clients and supporters along with networking with other charities and services. 12
THE ROYAL SCOTTISH CORPORATION THE SCOTTISH HOSPITAL OV THE FOUNDATION OF KING CHARLES 11 TRUSTEES, REPORT {continlled) FOR THE YEAR ENDED 31 MARCH 2023 We also retumed to the Angel Canal Festival, an event local to OUT office, and in a borough where we have a high number of cliellts. Like Pride. it's an excellent way io meet OT reconnect with cli¢nts and supporters. Our St Andrew's Day Festival Dinner was a su¢cessfiJl event with the Scotscare Choir performing to the delight of attendees. Working with other organisatioDs We have continucd our involvement with Scots in London. a group of 17 Scots organisations working in London. The group aims to support the Scottish community in London, including ils charity Tnembers. The purpose of this group will be io continue networking and collaborating to promote our individual organisations acr05S the Scottish diaspora in the broad 'London" area. We are delighted that HRH The Princess Royal has agreed to Continue as Patron. Fundrai5111 Scotscare is registered with the Fundraising Regulator but does not engage in public fundraising and does not use professional fvndraisers or commercial participators. Nonetheless, we do observe the relevant fundraising regulations and codes. Scotscare will never call to ask someone to donate or pass on their details. We do use databases to keep track of clients, needs and to communicate better with our volunteers. How we use this inforTnation is clearly stated in our Privacy Policy which is available on our website. No complaints were received during 2022123. Financial Review The results for the year are shown in the Statement of Financial Activities Incoming Te50urces totalled £2,734,408 {2022.. £2,627,869) and total resources expended were £2,979,109 {2022.. £2,688,658). This resulted in a defjcit of £244,701 (2022.. deficit £60,789); Incoming resources for the year derive predominantly from investment income and interest of £1,261,191 (2022.. £1,252,485) plus rental income from residential housing of 1,378,758 (2022.- £1,280,4551- Legacies, covenanlslgift aid events and donations amounted to £21,523 (2022.. £24,381). Realised Ios5 on investment5 amounted to £0 (2022 realised loss.. £402). UnTealised loss on investments amounted to £2.460,919 {2022 unrealised gain-. £1,298,0981- and The total funds at 31 March 2023 amounted to £54,533,789 (2022.. £57,239,409). Associated Charities & Related Charities The Corporation is the sole Trustee of the Kinloch Bequest (Charity No. 210067) . The charity is required to be managed by a Committee of Management made up of 15 Life Governors of S¢otsCare plus the President, Vice Presidents, and Treasurer. Trustees of the Corporation are also appointed as the sgle trustees of the St Andrew's Scottish Soldiers, Club Fund {Charity No 233297}. The object5 of the abov¢ charities are distinct from those of the Corporation and, accordingly, they are not considered to be subsidiary charities. TheiT results, assets and liabilities do not fom) part of these fmancial st8teTnents. Investrnent Mana ¢m¢nl The investments of the Corporation are managed by the investment adviser, Sarasin & Partners LLP under dEscretionary mandate5 that provide for annual fee5 based on the average value of the respective portfolios managed by them. The Corpor&titsn ha5 adopted guidelines for the investment of its funds which are intended to allow flexibility in the range and classes of investment subject to protection against imprudent investment actions, decisions and practices. The primary objectives are.. The generation of income at a level consistently 2nd reasonably balanced between the need to conserve and increase lon¥-temi capital and the need to generate income for the activities of the Corporation The achievement of a level of income sufficient to enable the Corporation to grow the scale of its charitable activities in real terms
THE ROYAI. SCOTTISH CORPORATION THE SCOTFISH HOSPITAL OF T14E FOUNDATIOIY OF KtNG CHARLES 11 TRVSTEES. REPORT (continued) FOR THE YEAR ENDED 31 IVIARCH 2023 No specific investinent exclusions have been set. However, the Sarasin's fund in which Scotscare invests does not invest in tobacco and avoids investtnent in companies that have more than l OQ/o of their turnover in alcohol manufacture. arn)aments, gambling or porno¥raphy. The Investment Sub Committee reviews the perforniance of the portfolio with the Investment Adviser quarterly and reports to the Committee of Mana(Tement. The Investtnent Sub Committee conducts an evaluation of the Investtnent Adviser on an annual basis. The evaluation includes ¢onssderation of the investment strategy and the process of the Investment Adviser and performance against benchmarks. In the year to 31 March 2023 the investment income amounted to £1,261,191 (2022.. £1,252,485). The brokerage commission amounted to £161,712 (2022.. £167,946) and the investment tnanagement fees were £171,297 (2022.. £179,693). The market value of the portfolio at 31 March 2023 amounted to £43,903,924 (2022.. £46,530,585). Reserves The position disclosed by these Financial Statements shows that at 31 March 2023 the unrestricted reserves of the Corporation amounted to £11,075,172. This sum comprises {a} £10,235,404 of Functional Fixed Assets and {bl £839,768 the balance of unrestricted free reserves. The target fund of flee reserves is £1,489,555. The TrLJStees are confident that the charity holds sufficient reserves for operational purposes which include a cyclical property maintenance plan, We regularly review our Teserves policy which is linked to the major risks and opportunities for the organisation. The restricted fi]nds as at the year-end artJountEd to £55,498. Functional Fixed Assets These assets drc the Corporation's three residential properties providing accommodation for the over 55s. Unrestricted Free Reserves Unrestricted ftee reserves are represented by other net asset5 available at the Trustees full discretion in the conduct of the CorpoTation's aftairs. We consider that for the smooth running of the Corporation and as a protection against exceptional expenditure or a drop ill illCOTne, a level of available expendable reserves is necessary. The current level of available expclldable reserves of £839,768 represents approximately 1.540/0 of the net asset5 of the Corporation and approximately four Tnonth5 of noTtnal expenditure. The total reserves at 31 March 2023 are £54,533,789. It comprises unrestricted fund.. £11,075,172, restricted fund.. £55,498 endowed fund.. £43.403,119. Future lans We have agreed on an annual budget to support and contribute to the ongoing development and delivery of client support service5 throughout the coming year with EL Spend of £3.3 million in 2023-24. The annual programme of 5ervice5 will be delivered.. usin¥ direct interventions where resources Can be most effective. identifying and signposting to other appropriate services for the benefit of clients,. supporting and investin¥ in our staff and volunteers through training and development. and, working with other organisations, societies, churches, chariiies and agencies. Next year we will.. ensure the eontinuation and smooth tran5ltion of Borderline services into the Scotscare range of services,. develop a new operational strategy for 2023-2026. review OUT mental health services, in particular our children and fatnilie5 Psychotherapy service to 5UPPOrt vulnerable faTnilies, especially those children with educational and mental health needs; implement QUT new client database and develop our reporting capabilities,. refresh our theory of change to ensure we aTe focused on the best services to end the cy¢le of deprivation amongst our clients. 14
THE ROYAL SCOThISH CORPORATION THE ScOlSH HOSPITAL OF THE FOUNDATION OF KING CHARLES 11 TRUSTEES. REPORT {continued) FOR THE YEAR ENDED 31 MARCH 2023 expand our volunteering programme to include a bcfriending service for families. develop our communications strategy for 2023-26 to increase the nuinbeT of individuals benefitting frotn our seTviees- review our office lease at City Road as well as consider fvrther expansion of our sheltered housing accommodation,. increase the number of Scotscare Ambassadors., review The Kinloch Bequest and St Andrew's Scottish Soldiers, Club Fund charities,. and ¢ontinue to adopt our new Supplemental Charter and Bye-laws. roval This report was approved by the Trustees on 25 October 2023 and signed on their behalf by.. ames Chestnut Chairman
INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES OF THE ROYAL SCOTTISH CORPORATION THE SCOTTISH HOSPITAL OF THE FOUNDATION OF KING CHARLES 11 FOR THE YEAR ENDED 31 MARCH 2023 Opinion We have audited the financial statements of The Scottish Hospital Of The Foundation Of KiRg Charles The Second (Royal Scottish Corporation) for the year ended 31 March 2023 which comprise the Statetnent of Financial Activities, the Balance Sheet and the Cash Flow Statement and note5 to the financial statements, including a SUTnmary of significant accounting policies. The financial reporting fi'2mework that has been applied in their prcpaTation is applicable law and United Kingdom Accounting Standards, including financial Reporting Standard 102 Thc Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally A¢ccptcd Accounting Practice). In our opinion, the financial statement5'. give a true and fair view of th¢ state of the charity's affairs as at 31 Mah 2023 and of the charity's net movement in nds for the year then ended., have been properly prepared in accordance with United Kingdom GeneTally Accepted Accounting Practice. and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion Wc have been appointed as auditor under Section 144 of the Charities Act 2011 and report in accordance with the Act and r¢lcvant regulations made or having effect thereunder. We conducted our audit ij) accoTdance with Iniernationa Standards on Auditing (UK) (ISAS (UKI) and applicable law. Our responsibilities under those standards are furtheT 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 audiE of the financial statements in the UK, including the FRC'S Ethical Slandard, and we have fi]Ifilled our Other ethical responsibilities in accordance with these requirements. We believe thai the audit evidence we have obtained is sufficient and appropTiate to provide a basis for our opinion. Conclusions relating to going eoneer In auditing the fancial statements, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the financial 5taten]ents is appropriate. Based on the work we have p¢rfoTmed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may east significant doubt on the charity's ability to continue as a going concern for a pei'iod of at least tweSv¢ month5 from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are descrsbed in the Televant sections of this report. Other information The trustees are responsible for the other information. The other infomiaiion comprises the inforation included in the Trustees. Report. Our opinion on the financial statements does not cover the other infomiation and, except to the extent otherwise explicitly stated in our report, we do not express any fortn of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doll)g so. consider whether the other information is materially inconsistent with the financial ststements or our knowledge obtained in the audit OT OtheTwise appears io be materially misstated. If we identify such material it]consistencies oi. 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 infomiation, we are required to report that fact. We have nothing to report in this regard. Matters on which we are required to report by exception We have nothing to report in respect of the following mattcTS in relation to which the CharitEes (Accounts and Reports) Regulations 2008 require us to report to you if. in our opiniot]'. adequaie accounting records have not been kept by th¢ charity. or sufficient accounting records have not been k¢pt' or the charsty financial statemenis are not in agr¢cTnent with tlie accounting records and returns,. or we have not received all the information and explanatsons we require for our audit. 56
INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES OF THE ROYAL SCOTTISH CORPORATION THE SCOTTISH HOSPITAL OF THE FOUNDATION OF KING CHARLES II FOR THE YEAR ENDED 31 MARCH 2023 Responsibilitie5 of trustees for the financial statements As explaiiied more fully in the trustees, responsibiliiies stalements on page 6, the trustees are respoTisible for the preparation ol. the financial statements and for being satisfied thai they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of fancial statements that are free fi'om material misstaiement, whether due to fraud or error. In preparing the finoncial statements. the trustees are responsible foT assessing the charity's ability to continue as a going concern, disclosing. as applicable, matters related to going conceTn and using the going concern basis of accounting unless the trustees either intend io liquidaie the charity or to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the uudit of the financial statements Our objectives are to obtain Teasonable assurance about whether the financial statements as a whole are free from material misstaiement, whether due to fraud or error, and to issue an auditor's reportthat 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. Mi5Statements 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 decisiolls of useTS taken on the basis of these financial 5taternents. Irregulariiies, including fTaud, [e 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 exteni to which our procedures are capable of detecting irregularities. including fraud is detailed below. Based on our understanding of the Charity, we identified that the principal risks Of ntsn-compliance with laws and regulations relates to the regulatory requirements of tenancy regulations, Charity Law, Health and Safcty Act and employment law 2nd we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the finaDcial statements such as the Charities A¢t 201 l and the application of FRS 102 and payroll tax. We evaluated management's incentives and opportunities for fraudlllent manipulation ofthe finan¢ial statements (including the T15k of override of ¢ontrols), and detennined that the principal risks were related to posting of inappropriate journal entries and management bias in accounting estimates. Audit procedure5 perfortned by the engg&Jem¢nt team included.. Enquiries of management regarding correspondence with re¥ulators and tax authoritie5. Discussions wilh management including consideration ot known or suspected instances of non-compliance with laws and regulation and fraud. Evaluating management's controls designed to prevent and detect irregulariti¢s' Identifying and testing journals, in particular, journal entTie5, Postings by unusual users or with unusual descriptions. and Challenging assumptions and judgements made by management in their accounting estimates. Because of the inherent litnitations 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-cornpliance with regulation. This risk increases ihe moTe that compliance with a law or regulation is removed from the evenis and transactions reflected in the finan¢ial statements, as we will be less likely to become aware of in5tanc¢s of non-compliance. The risk is also greater regarding IrregulariteS occurring due to fraud rather than error, as fraud involve5 intentional conc¢almcnt, forgery, collusion, onii5siott or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. www.frc.org.uklauditorsresponsibilities. This des¢ription forms part of our auditor's report. 17
INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES OF THE ROYAL SCOTTISH CORPORATION THE SCOTTISH HOSPITAL OF THE FOUNDATION OF KING CHARLES 11 FOR THE YEAR ENDED 31 MARCH 2023 Use of our report This report is made solely to the charity's trustees. as a ix)dy, in accordance with section 144 of the Chai'itie5 Act 201 l and regulations made under Section 154 of that Act. Our audit work has been undertaken so that we might State to the chaTity'S trustees those matters we ale reqtjired to state to them in an Auditor's repoi1 and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone othei. than the charity's trustees as a body foT OUT audit work, for this report, or for the opinions we have fomed. LLLR Haysrnacintyre LLP Ststutory Auditors l O Queen Street Place Londgn EC4R IAG Date.. 1511112023 Haysmacintyre LLP is eligible to act as an auditor in terms of section 1212 of the Companies Aet 2006. 18
THE ROYAL SCOTTISH CORPORATION THE SCOTTISH HOSPITAL OV THE VOUNDATION OF KING CHARLES II STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023 Uni'estrieted Trund5 ZO23 R¢$tri£ted Funds Fndoiyed Fn$ 2023 Tot*1 2023 Toffrfl 2022 21123 Notes Ineome frotn: Donations and legacies 21,523 21,523 24,381 Inve5ttnents 1.261,191 1,261,191 1,252,485 Clillrill oclivilies IncoTne from residential propety Income from services in respect of homeless people 1,378,758 1.378,758 1,280.455 72,936 72,936 70,548 Total income 2,734,408 2,734,408 2,627,869 Expenditure on: Rai5iiigfHiids Investment management costs 62,671 188,011 250,682 251,384 Char1147ble aellvlil Welfare Residential housing Other 1,875,247 851,821 1,875,247 851,821 1,359 1,560,859 873,223 3.192 1,359 Total expenditure 2,789,739 1,359 188,011 2,979,109 2,088,658 Net (expenditure) before investment (1055es)IgaTn5 (55,33 I) (1,359} (188,0111 (244,701) (60, 789) Realised (lo5se5) on inve5trnent5 Unrealised (Ios5esygains orh iiivestments (402) {4,384) (2,456,535) (2,460,919) 1,298,098 et realis¢dlunrealised (lossesy gains {4,384) (2,456,535) (2,460,919) 1,297.096 Net movement in funds (55,331) (5,743) (2,644,546) (2,705,620) 1,236,907 Total funds brought forward 11,130,503 61,241 46,047,665 57,239,409 56,002,502 TOTAL FUNDS CARRIED FORWARD 11,075,172 55,498 43.403,119 54,533,789 57,239,409 All transactions are derived from continuing activities. All recognised gains and losses are included in the Staternent of Financial Activities.
THE ROYAL SCOTTI.SH CORPORATION THE SCOTTISH HOSPITAL OF TIIE FOUNDATION OF KING CHARLES 11 BALANCE SHEET AS AT 31 MARCH 2023 2023 2022 Notes FIXED ASSETS Tangible assets Investments 10,235,404 43,903,924 JO,316,531 4Lf,536,585 12 54,139,328 56,853, J16 CURRENT ASSETS Debtors and prepayinents Cash at bank and in hand 13 124,430 638,131 152,362 582,670 762,561 735,032 CREDITORS.. aOUnts falling due within one year 14 (250,586) QJg,J09) NET CURRENT ASSETS 511,975 5J5,923 CREDITORS: amounts falling due after more tli&n one year 15 (42,064) (54, J80) Provisions for liabilities and charges 18 (75,450) (75,450) 54,533,789 57,239,409 FUND BALANCES Endowed Fund5 Restricted Income Fund Unrestricted Income Fund 19120 19120 19120 43,403,119 55.498 11,075,172 40,047,665 61,241 IJ, 130,503 TOTAL FUNDS 54,533,789 57,239,409 The fmancial statements were approved and authorised for issue by the Trustees on 25 October 2023 and are signed on its behalf by.. J. Chestnut Chairman C. Somerville Treasurer 20
THE ROY AL scorrisH CORPORATION THE SCOTTISH HOSPITAL OF THE FOUNDATION OF KING CHARLES 11 CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2023 2023 2022 Cash flows from operating activities (908,024) (J,2J7,654) Cash l]ows from investiDg activities Dividends and interest Purchase of investrnents Purchase of fixed assets Proceeds from sale of investments 1,261,191 1,252,485 (480. 789) (269,232) 223 (130,440) Net cash provided by investing aetivities 1,124,751 502.687 Change in cash and cash equivalents in the year 216,727 (7J4,967) Cash 2nd cash equivalents at the beginning of the year 583,123 1,298,090 Cash and cash equivalents at the end of the reporting year 799,850 583, 125 NOTES TO THE CASH FLOW STATEMENT 2023 2022 Reeonciliation of Net MovemeTht in Wunds to Net Cash Flow from OperatlDg Activities Net movement in funds Lossl(gainsl on investments Investment Fee paid frorn the ¢apital account Depreciation charges Decreasellincreasel in debtors Increasel(decrease) in creditors Dividends and interest from investments (2,705,620) 2,460,919 333,008 217,567 27,932 19,361 1,236,907 (1.297,69LS) 201,904 (17,327) [88.957) (J,252.485) Net cash used in operating activities {908,024) (1,217,654) An8lysi5 of Cash and Cash Eqllivaltnts 2023 2022 Cash at bank and in hand Cash held by investment managers 638,131 161,719 582,670 453 799,850 585, J23 Note 17 shows the net movement in fundsldebt.
THE ROYAL SCOTTISH CORPORATION THE SCOTTISH HOSPITAL OF THE FOUNDATION OF KING CHARLES 11 NOTES TO THE FIIYANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 J. ACCOUNTING POLICIES 1.1 BASIS OF PREPARATION The fiiiancial statements have been prepared in accordance with Accounting and Reportit]g by ChaTlties.. Statement of Recommended Practice applicable to chai'ities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 10212ThJ edition effective for pei'iods commencing on or after l January 2019 - (Charities SORP FRS1021, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 102) and the Charities Act 2011. The charity constitutes a public benefit entity as defined by FRS 102. Assets and liabilities are initially recognised at histoi'ical cost or transaction value unless otherwise stated in the relevant accounting policy notes. Gotng Concern Givet] the chaTity'S level of free reserve5 available at the year end, the Trustees consider that the charity has adequate resources to continue in operational existence for the foreseeable future and that tliere is no TnateTial uncertainry connected with the chariry's ability to continue to operate as a ¥oin¥ concern. Accordingly, the financial Statements have been prepared on a going concern basis. Significant judgements and estimates Judgements Enade by the trustees. in the applEcation of these accounting policies have signifIcant effect on the financial statetnents. In the opinion of the trustees, in 2022-23 the significant judgements and estimate5 were applied to retired siaff pen5ion5, the useful economio life of the residentEal properties, and the provision for dilapidation. The details of these judgements and estimates are included in the relevant notes. 1.2 INVESTMENTS Listed investments are 8 fonn of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. All movements in value arising from investment change5 or revaluation are shown in the StateTnent of Financial Activities. Realised gains {or losses) investment assets are calculated as the difference between disposal proceeds and either their opening carrying value, or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value and the carrying value at year end. Realised and unrealised investment gains (OT losses) are combined in the statement of fit]ancial activities and are credited (or debited) in the year in which they arise. J.3 TANGIBLE FIXED ASSETS Freehold Land & Building5 Under the previous GAAP, land and buildings were stated at Valuation. On tTansition to FRS 102 an election was made to Use the valuation at 2014 as the deeEned cost and no depreciation on buildings was made as the amount involved was deemed immaterial. Following reappraisal in 2019-20 depreciation of t>uildings 15 now made atUallY at 20/0 of deemed eost. Fixtures. Fitting5 & Equipment Fixtures, fittings and equipment are depreciated at an annual rate of IOQ/D of cost. IT Equipment IT equipment is depreciated at an annual rate of 33.330/0 of cost. 22
THE ROYAL SCOTTISH CORPORATION THE SCOTTISH HOSPITAL OF THF. FOUNDATION OF KING CHARLES 11 NOTES TO THE FINANCIAL STATEMENTS (eontinued) FOR THE YEAR ENDED 31 MARCH 2023 1.4 DF,IITORS Debtors are recognised at the settlement amount, le55 any provision for non-recOVerab1Ity. Prepayments are valued at the amount prepaid. Trade and other debtors aTe recognised at the settlement amount due after any trade discount offered. Prepaymenrs are valued at the amount prepaid net Of any trade discounts due. A specific provision is made for debts for which recoverability is in doubt. 1.5 CASH AT BANK AND IN HAND Cash at bank and cash in hand includes cash and short term highly liquid investments. 1.6 CRII DITORS AND PROVISIONS Creditors and provisions are recognised when there is an oblsgation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any tradc discounts due. Creditors at]d provisions are recognised at the amount the Charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material. 1.7 PROVISION FOR UNFUNDED PENSIONS Unfunded pensions are paid by the Charity to certain former employees. The pensions are to be paid duTing their lifetime. The pension liability was calculated using the return on investment and to the assumed a¥e of 87 years. Thi5 decision was taken in the view of probable life expectancy of the retired staff who are already above the age of average life expectsncy of women in the UK. 1.8 PROVISION FOR LIABILITIES Provision has been made for expected property costs at the end of the leases based on the lease ternis, management's assessment of the property condition and the likely costs. The estimation involves a level of trLJStee judgement and will be reassessed annually. 1.9 FUP4D ACCOUNTING Funds held by the charity are either.. Unrestricted funds- which can be used in accordance with the charitable objects at the discretion of the trustees Endowment funds - the income from which can be used for the general PLtrposes of the charity, in accordance with the charitable objectives and at the discretion of the trustees Restricted funds which can only be used for particular restricted PUTposes within the objects of the chariry, either when specified by the donor or when fi]nds are raised foT particular restricted purposes 1.10 INCOME RECOGNITION Income is recognised in the period in which the Charity has entitlement to the income. where the amouni of income can be easured reliably, and it 15 probable that the income will be received. In accordance with Charities SORP FRS 102, volunteer time is not Fecognised. 1.1 I LEGACIES, GIFT AID & DONATIONS Legacies, covenants 2nd donations are accounted for on a cash received basis. 1.12 INVESTMENT INCOME & INTEREST Investment incoTne is recognised once the dividend has been declwed and noiification has been received of the dividend due. Interest on funds held on deposit is included when it is recevable, and the amount can be measured reliably by the Charity. this is nornially upon notsfication from the bank of the interest payable or paid. .13 RENTAL INCOME Income from the rental of functional properties is recognised when the income is receivable under the contract for hire or lease document, when the amount can be measured reliably. and it is probable such income will be received. 23
THF. ROY AL 8CO'I'TISH CORPORATION THE SCOTTISH HOSPITAL OFTIIE FOUNDATION OF KING CHARLES 11 NOTES TO THE FINANCIAL STATEMENTS (continued) VOR THE YEAR ENDED 31 MARCH 2023 1.14 EXPENDITURE Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in scttlement and the amount of the obligatEon can be measured reliably. All expenditure is accounted for on an accTua15 basis. Expenditure comprise% direct costs aiid support costs. All expenses, including support costs, are allocated OT apportioned to the applicable expcnditure headgs. Support costs are allocated in the same proportion as direct costs are incuried. All expenditure is stated inclusive of irrecoverable VAT. All eligible mernbers of staff are auto enrolled in a workplace pension scheme. Employer contributions to the scheme are charged to the statetnent ol Financial Activities in the year in which they are payable to the scheme. In addition, supplementary pension payments are made directly to certain former employee5. 1.15 OPERATING LEASES Rentals payable under operating leases for equipment are charged on a straight-line basi5 over the lerms of the leases. 1.16 EMPLOYEE BENEFITS Short term benefits Short term benefits including holiday pay are recognised as an expense in the period in which the service is Teceived. Employec termination benefits Temiination benefits are accounted for on an accruals basis and in line with FRS 102. 1.17 HERITAGE ASSETS No value is attributed to heritage assets on the basis that inforniation on cost or valuation of the assets is not available and could not be obtained at reasonable cost. The age, variety and lack of comparable market data would make any attempt at valuation extremely onerous and costly cotnpared with the benefit derived by users of the account. 24
THF. ROY AL SCOTTISH CORPORATION THF. SCOTTISH HOSPITAL OF THE fioUNDATION OF KING CHARLES II NOTF.S TO THE FINANCIAL STATEMENTS (continued) FOR THF. YEAR ENDED 31 MARCH 2023 DONATIONS AND LEGACIES 2023 2(J22 Legacies Donations Events 1,078 17,855 2,590 11,066 ,86] 4,434 21,523 24,381 All income from donations and legacies in 2022 and 2023 was unrestricted. INVESTMENT INCOME- UNRESTRICTED FUNDS 2023 2022 Dividend and interest on investments Bank Deposit Interest 1.258,995 2,196 1,251, 784 701 ,261,191 1.252,485 INCOME FROM CHARITABLE ACTIVITIES- UNRESTRICTED FUNDS 2023 2022 Incotne from residential property 1,378,758 1.280.455 1,378,758 1.280,455 MANAGEMENT FEE- UNRESTRICTED FUNDS 2023 2022 Fees for services in respect of homeless people 72,936 70,548 72,936 79,548 25
THE ROY AL SC.OThISH CORPORATION THE SCOTTISH HOSPITAL OF THE FOUNDATION OF KING CHARLES 11 NOTES TO THE FINANCIAL STATEMENTS (eontinued) FOR THE YEAR ENDED 31 MARCH 2023 RAISING FUNDS 2023 2022 BTokerag¢ commission and investsnent management fees Less.. a¢counted for as inve5ttnent transaclions 333,009 {161,712} 347, 657 (167,964) 171,297 79,385 179,693 71, 691 Support Costs {note 91 250,682 251,584 EXPENDITURE ON CHARITABLE ACTIVITIES 2023 2022 Welfare Staff costs Other direct costs Grants to individuals Support costs (note 9) 531,818 285,237 464,346 593,846 546,414 207,848 361,466 445,12 1,875,247 1,560,859 Residential Housing Staff costs Other direct costs Support costs (note 9) 140,764 441,306 269,751 133.293 490,903 249,027 851,821 873,223 GOVERNANCE COSTS 2023 2022 Auditors, remuneration- audit fees Auditors, remuneration- other services Other direct tosts 20,700 2,880 7.285 17,400 3,600 6,845 30.865 27.845 Governance costs have been allocated across inve5ttnent management costs and the cost of charitable a¢tiYities In proportion to direct expenditure. 26
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THE ROYAL SCOTTISH CORPORATION THE SCOTTISH HOSPITAL OF THE FOUNDATION OF KING CHARLES 11 NOTES TO THE FINAP4CIAL STATEMENTS {eontinucd) FOR THE YEAR ENDED 31 MARCH 2023 io. STAFF COSTS 2023 2(122 Wages and subsidiaries Social Securiiy costs Other pension costs 885,675 95,044 100,575 821,519 83, 186 90,955 ,081,294 995,660 Employees 21123 2022 The average number of employees during the year Charitable Support 19 24 25 2023 2022 fresloled) The average number of FTE during the year Charitable Support 14 15 18 19 There was one employee in the salary band £80,000 to £90,000 during the f]nancial year to 31 March 2023 (2022.. one). The key management tsf the Charity consists of the Chief Bx¢cutive together with the Tjwstees. Tolal remuneration for the Chief Executive, including social security and pension costs was £115,489 (2022.. £107,853). The Trustees received no remuneration in the current or prior year. No reimbursement was made to Trnstees in 2023 (2022: £Nil}. No donations were received from the Trustees in 2023 {2022.. £2). 28
THE ROYAL ScOlSH CORPORATION THE SCOTTISH HOSPITAL OF THF. FOUNDATION OF KINC. CHARLES 11 NOTF.S TO THE FINANCIAL STATEMENTS (continucd) FOR THE YEAR ENDED 31 MARCH 2023 TANGIBLE FIXED ASSETS Freehold Lllnd & Buildings Fixtures & Fittings Offiee Eq1Pment IT Total E4uipJnent COSTS l April 2022 Additions Returned items 10, 104, 154 785, 178 132,945 {880) 65,002 26,492 7,264 (2,889) 11,000,826 140,209 {3,769) At 31 Mareh 2023 10,104,154 917,243 85,002 30,867 11,137.266 DEPRECIATION l April 2022 Charge for the year 349,881 143,283 23P,211 67,614 85,002 10,201 6,670 684,295 2J7,567 At 31 March 2023 493,164 306,825 85,002 16.871 901,862 NET BOOK AMOUNT At 31 March 2023 9,610,990 610,418 13.996 10,235,404 At 31 March 2022 9, 754,273 545,967 16,29] JO,316,531 29
TIIE ROYAL SCOTTISH CORPORATION TIIE SCOTTISH HOSPITAL OF THE FOUNDATION OF KIIYG CHARLES JI NOTES TO THE VINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2023 12 INVESTMEIYTS 2023 2022 Opening value at l April 2022 Cost of additions Less proceeds of disposals Investment manager's fees charged to portfolio Realised (loss)Igain Unrealssed gain 46,536,585 44, 757,870 660,482 Q23) {171,297} (179,693 (402) 1,296,096 (2,623,083) Marktt value al 31 March 2023 43,742,205 46.536, J32 Funds on deposit with investment manager 161,719 453 Total valut as at 31 March 2023 43,903,924 46,536,585 Cost at 31 March 2023 Unrealised gains at 31 March 2023 36,833,752 7,070,172 36,672,486 9,864,099 Market value At 31 Mgrch 2023 43,903,924 46,536,585 The Investment allocation at the year-end based on market value is a5 follows.. 14.8 % fixed interest, 65.90/0 equities, 4.4 /0 property, 12.30/0 alternative investments, 2.6D/o liquid assets. I 00/0 of the portfolio is held through a common investment fund. All investments are in UK entities. 13. DEBTORS 2023 2022 Accrued income and prepayment Trade debtoi's 97,389 27,041 88,971 63,391 124,430 J52,362 30
THE ROYAL.8corfisH CORPORATION THE scorrisH HO.SPITAL OF THE FOUNDATION OF KING CHARLES 11 NOTCIS TO THE FINANCIAL STATEMENTS (eontinued) FOR THE YEAR ENDED JI MARCH 2023 14. CREDITORS: Amounts falling due within one yeAr 2023 2022 Trade creditors Other creditors Deferred income Accruals 93,697 30,290 8.107 118,492 72,375 28,208 Jl,2J7 J07,309 250,586 219.109 Other creditors include £12,117 (2022.. £12,937) related to unfunded pensions. Deferred income comprises rental income received in advance, as follows.. 2023 2022 Balanee at l April Amount released to rental sncome Amount deferred in year 15, 142 (15, 142) 11,217 (11,271) 8,107 Balance at 31 March 8,107 11,217 15. CREDITORS: Amounts falling due after more than one year 2023 2022 Unfunded p¢n5ions 42.064 54, J80 42,064 54, 180 16. OPERATING LEASES Equipment Buildings 2023 2023 2022 21122 Under l year 2-5years 11.929 23,634 5, 718 124,544 186,817 124,544 311,361 35,563 5, 718 311,361 435.905
THE ROYAL.scorrisH CORPORATI()N THE SCOTTISH HOSPITAL OF THE FOUNDATION OF KING CHARLES II NOTES TO THE FINANCIAL STATEMENTS {eontiNued) FOR THE YEAR ENDED 31 MARCH 2023 17. NET DEBT RECONCILIATION At l April 2022 Cashflows Other non cash changes At31 March 2023 Cash 583, 123 216,727 799,850 IYET DEBT RECONCILIATION 2022 Conipllrolive Al l April 21P21 Cffshjloivs Oilier lion casli clioiiggs Ai31 Mftrcli 2(122 Cash 1,298.090 (714,967) 583, J23 18. PROVISION FOR LIABILITIES AND CHARGES Provision for dilapidation A provision of £75,450 has been made for the expected property dilapidation cost at the end of the lease based on the lease terms and management's assessment of the property condition. The estimaton involves a level of judgement and will be reassessed annually. Balance at l ApTiI 2022 75,450 Balance at 31 March 2023 75,450 32
THE ROYAL SCOTTISH CORPORATION THE SCOTTISH HOSPITAL OFTHE FOUNDATION OF KING CHARLES II NOTES TO THE FINANCIAL STATEMENTS (c(bntinued) FOR THE YEAR ENDED 31 MARCH 2023 19. MOVEMENT IN FUNDS l April 2022 Income Eip¢nditure Investment Furtd transfer5 31 M&r£h 2023 Endowed Fund The James Kinnear Fund 46,047,665 (188,011) {2,456.535) 43,403,119 Restrieted fund Heritage Fund 61,241 (1,359) (4.384) 55,498 Unrestricted Incorne Fund5 Functional Fixed Assets Free Assets JO,316,531 J3,972 1,378,758 1,355,650 (851,821) 11,937,918) {608,0641 10,235,404 608,064 839,768 Total Unrestricted Funds JI, 130,503 2,734,408 (2,789.739) 11,075,172 Total Funds 57,239,409 2,734.408 (2,979,109) 12,460,919) 54.533.789 COMPARATIVE 2022 l April 2021 Ineome Expendilvr¢ INveslinent Fund tnnsfers 31 MArch 21122 Endowed Fund The James KiTTrnear Fund 44,940,876 (188,538) 1,295,327 40,047,665 Restricted fund Heritage Fund 62,064 (3, 192) 2,369 61,241 Unrestri¢t¢d Income Funds Functional Fixed Assets Free Assets 10,249,203 750,359 1,280,455 J,347,4J4 (873,223) (1.623, 705) (339,904) 10,316,531 339,904 813,972 Total Unrestricted Funds 10,999,562 2,627,869 (2.496,928) 11, 130.503 Total Funds 56,002,502 2,627.869 (2,688.658) 1,297,696 57,239,4U9 33
THL ROYAL SCOTTISH C.ORPORATION THE sco]SH HOSPITAL Ob THE FOUNDATION OF KJNG CHARLES Il NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2023 20. ANALYSIS OF ASSETS BETWEEN FUNDS Unrestricted Funds Restricted Funds Endowed Fundy Total 2023 TangEble Assets Investments 10,235,404 10,235,404 43,903,924 78,611 43,825,313 Current Assets less Creditors & Provisions 839,768 (23.113) 1422,194) 394,461 1,075,172 55.498 43,403,119 54,533,789 Unreslriclerf Resirlcfeél Enrfowerf Fiinds Tthffn12022 Tangible Assets Inwestments 10,3J6,53J JO,3J6,53J 83,299 46,453,286 46,536,585 Current Assets less Creditors & Provisions 813,972 (22.058) (405,62J) 586,293 JI,130,505 61,241 46,047,065 57,23P,409 THE JAMES KINNEAR FUND The James Kinnear Fund is an unexpendable capital (Permanent Endowment) fund whose assets are invested tQ PToduce income which each year is recorded in the Unrestricted Incotne Fund and is freely available foT the charitable activities of the CorpoTation. HERITAGE FUND The H¢ritage Fund is a capital fund which arises from the historic sale of certain of the Corporation's paintings lanciently donated) upon moving premises. Its income each year is recorded in the Unrestricted Income Fund and is freely available for the charitable activities of the Corporation. Its capital a55ets are available to the TTUStees for the purchase of replacement cotnmemorative artefa¢t5 for the Corporation's headquarters or such other corporate expenditure as the Trustees rnay deterniine. UNRESTRICTED INCOME FUNDS These funds repTe5ent accumulated incom¢ surpluses and consist of functional fixed a55ets fund and free assets. (a) Tangible Fixed As5etS Functional fixed assets comprise residential property and the fixtures & fittings within providing accommodation for the elderly and key workers on lower incotnes. The Trustees have deteTmined that these assets shall be a capital fund but that upon a disposal of the underlying property. any proceeds not similarly reinvested shall become free assets available at the Trustees, discretion. 34
THE ROYAL SCOTTISH CORPORATION THE SCOTTISH HOSPITAL OF THF. FOUNDATION OF KING CHARLES 11 Tr40TES TO THI FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2023 20. ANALYSIS OF ASSETS BETWEEN FUNDS (b) Free Assets Frce asseis are available at the Trustees, discretion in the conduct of the Charity's affairs. 21. CAPITAL COMMITMENTS At 31 March 2023, the Charity ha5 no capEtal commitment (2022.. £70,000}. 22. HERITAGE ASSETS Works of art and ceremonial silverware are not capitalised in these accounts. They are considered to be heritage assets for the purposes of the Charities SORP (FRS 102). They all have very long lives and are worth preserving indefinitely. No value is attributed to heritage assets on the basis that information on cost or valuation of the assets is not available and could not be obtained at reasonable cost. There has been no movement in the heritage assets in the last 5 years. 23. RELATED PARTY TRANSACTIONS Callum Ross, one of the Trustees, is a designated member of Habitus Collective UK LLP, a ¢ompany engaged to provide consultancy services to the Charity. The Charity paid £11,940 for this WOTk during the year {2022.. £nil). There were no outstanding balances ai the reporting date (2022.. £nil}. Other than the transactions disclosed above, the Charity had no other related paty transactions. 24. POST BALANCE SHEET EVENTS The Royal Scottish Corporation (Scotscare) and New Borderline (Borderline) merged on l April 2023 to provide a one stop shop for vulnerablc Scots across London. On l April 2023 the assets and liabilities of New Borderline (Registered Company number 06844151, Charity numbers 11286848 and SC044530) weTe transferred to Scotscare. 35