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← Scottish Garden City Housing Society Ltd

2025-03-31-accounts

Charity registration number SC008959 (Scotland) Company registration number SP0735RS (Scotland) Mutuals Public Register number 735RS

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

The Scottish Garden City Housing Society Limited (Society) is a Registered Friendly Society and a Scottish Charity. The rules governing the Society were rewritten, approved, and registered with the Financial Conduct Authority on 9th November 2021. The operating name, Veterans Housing Scotland (VHS) was adopted in 2021 and is the name the charity uses during its operation.

Her Royal Highness The Princess Royal (December 2024)

Patron

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President

Trustees

Chief Executive Charity number SC008959 Company number SP0735RS Mutuals Public Register number 735RS Registered office 3 Redheughs Rigg Edinburgh EH12 9DQ Tel No 0131 557 1188 Website: www.vhscot.org.uk Auditor Saffery LLP 9 Haymarket Square Edinburgh EH3 8RY Bankers Royal Bank of Scotland plc 32 St Andrew Square Edinburgh EH2 2YB Solicitors Brodies LLP 58 Morrison Street Edinburgh EH3 8BP

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Investment Managers

RBC Brewin Dolphin 6th Floor, Atria One 144 Morrison Street Edinburgh EH3 8BR

Building Consultants

Hardies Property and Construction Consultants 12 Atholl Crescent Edinburgh EH3 8HA

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

CONTENTS

Page
Trustees' report 1 - 6
Statement of Trustees' responsibilities 7
Independent auditor's report 8 - 10
Statement of financial activities 11
Balance sheet 12
Statement of cash flows 13
Statement of changes in equity 14
Notes to the financial statements 15 - 31

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2025

The Trustees submit their annual report and audited financial statements for the year ended 31 March 2025. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) FRS102 “Accounting and Reporting by Charities” (issued 2019) in preparing the annual report and financial statements of the Charity.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's governing document, the Co-operative and Community Benefit Societies Act 2014, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "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).

Trustees retiral

Two trustees retired from the Charity during the financial year and up to the date of signing the annual report and financial statements.

Objectives and activities

Veterans Housing Scotland will promote, advance and further the following charitable purposes:- The prevention or relief of :-

(a) such persons who have previously served in the UK Armed Forces and who while serving or after completion of service have been or become disabled (veterans); and

(b) dependents of veterans as the charity trustees may determine from time to time, in need by reason of age, ill health, disability, financial hardship or other disadvantage by:-

(i) the provision, construction, improvement and management of affordable rented homes;

(ii) the provision of wellbeing support; and

(iii) such other means as the charity trustees may from time to time determine

"dependents" means any person:-

(i) to whom a veteran is married;

(ii) who is the civil partner of the veteran; or

(iii) with whom the veteran is living as husband and wife or, where the veteran and other person are of the same sex, in an equivalent relationship.

Achievements and performance

The Trustees are pleased to present the achievements and performance of the charity for the year ended 31 March 2025. The report focuses on the achievements, performance, and plans for People, Properties, Partnerships, and Promotion.

The charity provides comfortable, affordable, and secure housing for disabled veterans and their dependents across Scotland. It also delivers wellbeing and tenancy sustainment, ensuring beneficiaries lead better lives with brighter futures as part of the VHS family.

Despite national and international challenges, we have made progress in serving our beneficiaries, enhancing

our properties, forging partnerships, and raising awareness about our work.

We thank our beneficiaries, staff, trustees, partners, and supporters for their dedication and support. Together, we will continue to build a brighter future for disabled veterans and their families, ensuring they have a place to call home and the support they need to thrive.

Royal Patronage

We received official notification that Her Royal Highness, The Princess Royal, accepted our request to become the charity’s patron. We were privileged to have HRH attend our 110th anniversary celebration in the Great Hall of Edinburgh Castle on 8 March 2025. HRH learned more about the charity and met some of its beneficiaries, staff, trustees, and partners.

Our People

At the very core of everything we do is the recognition of our people. Focused on our beneficiaries, our staff, trustees, and retained advisors, we cultivate a thriving community rooted in understanding and mutual respect.

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Our Beneficiaries

At Veterans Housing Scotland, our top priority is the well-being of our beneficiaries. Since introducing our tenancy sustainment service in 2023, we have made significant progress in ensuring that each individual receives the tailored support they need. Introducing geographically placed Visiting Officers has been crucial in establishing meaningful relationships with beneficiaries.

The Charity has made significant progress in supporting its people through various initiatives and collaborations. We have focused our efforts on ensuring that our beneficiaries receive the support and resources they need to lead fulfilling lives. Our Visiting Officers have completed 721 visits to beneficiaries and as a result referred 311 individuals to a range of support organisations, including the Department for Work and Pensions (DWP), Police Scotland, Bravehound, Citizens Advice Bureau (CAB), SSAFA, and many others. These referrals have provided essential help and resources to those in need, ensuring they receive the help required to improve their lives.

Our Visiting Officers have also been actively engaging in the community, attending 99 events such as the Unforgotten Forces Gathering, Scottish Association of Landlords Events, and Edinburgh Napier University Veterans Conference. These events have allowed our team to connect with veterans and other local community support organisations, fostering relationships and providing support where it is most needed.

We have also prioritised the professional development of our staff by organising 30 Central Office Training Days. These sessions featured 5 external speakers from organisations, such as Op Nova, Royal British Legion (RBL), DWP, and Defence Medical Welfare Service (DMWS). These training days have improved our team’s understanding of the support available to our beneficiaries and equipped them with valuable knowledge and skills, enhancing their ability to serve our beneficiaries effectively.

In addition to these training days, our staff have completed 15 training courses, further showing our commitment to their growth and development. This continuous learning ensures that our team remains well-informed and capable of addressing the diverse needs of those we support.

Our efforts have extended to providing crucial advice and guidance to veterans seeking help. We received 177 calls for housing advice and 278 calls for guidance on various matters, including financial issues and overall wellbeing. These calls highlight the trust placed in our Charity and our ability to offer meaningful support to those facing challenges.

Overall, our work has had a profound and positive impact on our people, fostering a supportive and informed community dedicated to improving lives.

Organisation Chart

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CEO
i
1
1
Deputy CEO
:
Administration Tenancy Sustainment Property Finance and PR
Administration Manager Senior Visiting Officer Property Manager Finance - JSCA
Income Maximisation Visiting Officer Property Assistant PR — Elaine Howie PR
Administration Support Visiting Officer Building Consultants
Administration Support Visiting Officer RMTs
Visiting Officer
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THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Plans

Over the next 5 years, we will focus on the crucial role of our people. We will adapt support for our beneficiaries, invest in staff training, and ensure our strategies remain inclusive and adaptable. By investing in our people, we aim to enhance service quality, foster community connections, and drive essential change.

Our Properties in 2025

We ensure our homes meet the highest standards for our beneficiaries. Our properties are affordable, compliant, energy-efficient, and tailored to the needs of our beneficiaries and the charity. We continue to seek innovative solutions to meet the housing demand for disabled veterans in Scotland.

Our work in property management has significantly improved the lives of many of our beneficiaries and their families. Over the year, we have issued 19 tenancies, providing stable housing for those in need. Additionally, we have made 7 housing referrals to external organisations, ensuring that more disabled veterans find suitable living arrangements. We are currently handling 13 ongoing enquiries, demonstrating our commitment to addressing housing needs promptly and effectively.

We have successfully completed significant work on 28 properties using capital grant funding, enhancing the quality and availability of housing. Veterans Housing Scotland funded capital additions, allowing us to refurbish 15 properties. This demonstrates our ability to leverage various funding sources to improve our properties and living conditions for our beneficiaries. Our commitment to maintaining our properties is clear in completing over 1900 repairs, ensuring safe and comfortable homes for our beneficiaries. We also responded to storm damage, repairing 76 properties affected by adverse weather conditions.

In our efforts to optimise our property portfolio, we disposed of 11 properties, generating a substantial value of £1,613,550. This strategic move allows us to reinvest in our portfolio. Currently, we have 7 properties in the process of disposal, which will further enhance our ability to refurbish our stock.

We completed a tender process to conduct in-depth surveys on our housing stock. The surveys, completed by 31 March 2026, will provide current valuations and extensive information on which to base a 10 year spending plan. We will introduce the plan in 2026, prioritising the locations most in need.

Through these initiatives, we continue to make a positive impact on our people, providing them with secure, highquality housing and responsive support. Our commitment to excellence in property management is solid, and we aim to create a better living environment for all.

Plans

Our property management strategy goes beyond physical structures, aiming to create supportive environments for our beneficiaries. Our commitment to sustainability includes enhancing energy efficiency through regular inspections and eco-friendly solutions. By prioritising capital additions and managing property disposal, we aim to foster comfortable, sustainable living environments and reinforce the Charity’s long-term financial stability, empowering disabled veterans with security and opportunity.

Our Partnerships

We continue to create new partnerships and strengthen existing ones to better serve our communities throughout Scotland. Strategic placement of assets and partnerships has led to increased impact, better outcomes, and reduced costs.

We have continued to lead by example and demonstrated a deep commitment to fostering meaningful relationships that positively impact on our people. Some of our most notable achievements includes partnerships with Defence Medical Welfare Service (DMWS) and Operation Cairngorms. These collaborations have opened new avenues for support and resources, enhancing our ability to serve our community effectively.

In addition to these partnerships, we have successfully maintained over 80 relationships. These relationships are integral to our daily operations, involving a diverse range of stakeholders, such as our repairs and maintenance teams, accountants, consultants, and various charities. Notable among these are the local authorities, Hanover Scotland, Vector 24, SSAFA, and Bravehound. Each partnership brings unique strengths and resources, contributing to a robust network that supports our beneficiaries.

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Through these partnerships, we have been able to leverage collective expertise and resources, ensuring that our people receive comprehensive support. The daily interactions and collaborative efforts with our partners have not only strengthened our operational capabilities, but also fostered a sense of community and shared purpose. This network of partnerships is evidence to our commitment to creating a positive and lasting impact on the lives of those we serve.

Plans:

Our Promotion in 2025

Through strategic promotion efforts across various platforms, we will increase visibility and cultivate a deeper understanding of the critical work we do at Veterans Housing Scotland, thereby attracting partnerships, donors, and wider support.

Our recent initiatives have had a remarkably positive impact on our people and community. We organised a series of civic events across Aberdeen, Glasgow, Edinburgh, Dundee, and the iconic Edinburgh Castle. These events were a resounding success, attracting a total of 450 attendees and engaging 200 organisations. This level of participation highlights the strong community interest and the value of our efforts.

We extended this year's annual awareness campaign to include adverts on Sky and Radio, resulting in an excellent and extensive news report on STV.

Our social media presence has also seen significant growth. We achieved 89.6K views and reached 22.1K individuals, with 4K content interactions and 602 link clicks. Additionally, our social media platforms welcomed 167 new followers, bringing our total visits to 9.9K on Facebook and Instagram. This growth highlights our expanding influence and the effectiveness of our digital engagement strategies.

Our website metrics further reflect our positive impact. We recorded 36.9K visitors, an increase of 5.8K from the previous year, and our page views soared to 112.4K, up by 21K. Although the average time spent on our site slightly decreased by 5 seconds to 1 minute and 1 second, and the bounce rate increased by 4% to 50%, these figures still demonstrate a robust online presence and growing interest in our content.

Overall, these achievements illustrate the significant strides we are making in promoting our initiatives and engaging with our community, both online and offline.

Plans

With dedicated promotion, we aim to increase awareness and visibility of our efforts to support disabled veterans. Through awareness and fundraising campaigns, digital media campaigns, local media collaborations, and community events, we will strengthen our message, expand our donor base, and ensure our beneficiaries’ voices are heard. Regular newsletters and impact statements will drive stronger community support and increased funding opportunities. By employing a multi-faceted promotional approach, we strive to make a lasting impact on the lives of disabled veterans while garnering widespread awareness, increased support for our beneficiaries and additional funding for the charity.

Five-Year Strategic Approach

Our charity, founded in 1915, must adapt to changing needs to remain relevant and impactful. As societal norms, technologies, and conflicts evolve, we must reassess our approaches, listening to both older and newer generations. Our resilience and commitment have sustained us, but our future depends on innovation and growth.

Over the past five years, Veterans’ Housing Scotland has improved outcomes for disabled veterans through strategic restructuring and partnerships. Over the next five years, we aim to build better futures by providing wellmaintained homes, robust support services, and community integration.

Balancing affordability and financial sustainability is crucial. We will expand funding through partnerships, fundraising, and innovative financing, leveraging government grants and community support. This will ensure longterm impact and stability.

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

In conclusion, our success over the next five years will focus on operational efficiency, community building, property quality improvements, and strategic partnerships. We will measure success through engagement, property standards, partnerships, promotional impact, and sustainable funding.

Summary

The Charity remains committed to providing affordable housing and support to disabled veterans. Our achievements this year reflect our purpose to make a difference in the lives of those who have served our country. Through our efforts in property management, partnerships, and promotions, we continue to create a positive impact on our community, ensuring that veterans receive the support and resources they need to thrive. This year, as we celebrate our 110th anniversary, we are especially honoured to have Her Royal Highness The Princess Royal as our new Patron.

Financial review

Net Income and Expenditure for the year, as at 31 March 2025, shows a surplus before transfers of £2,150,354 (2024: surplus £1,000,242). There was a surplus of £399,661 (2024: surplus £11,306) on restricted funds and there was a surplus of £1,750,693 (2024: surplus £988,936) on unrestricted funds.

Investments

The appointed investment managers are RBC Brewin Dolphin. The Trustees have previously given the investment managers discretion to manage the portfolio with an agreed risk profile classified as “Diversified Risk”. The investment managers provide a written report every quarter and meet with the Finance Sub-committee regularly to review the portfolio.

An investment register is held with the charity and is updated and reconciled on a monthly basis.

The value of the investment portfolio as at 31 March 2025 was £2,575,758 (2024: £2,586,019). The Finance Subcommittee are satisfied with the figures achieved by the Investment Managers.

Reserves Policy

The Charity’s Reserve Policy is that the Charity must hold enough reserves to function over 2 years. The Trustees have reviewed this years reserves, and the review concludes that it has sufficient reserves to meet demands for property provision and maintenance as required by the Society’s Rules. As at March 2025, the charity held £21,826,642 of reserves, of which £1,680,655 is restricted and £3,808,889 is unrestricted and £16,337,098 designated.

Staff Pensions

The Charity contributes to individual employee pension schemes. The amount charged to the statement of financial activities represents the contributions to the scheme in respect of the accounting period.

Remuneration of key management

The Charity’s key management was carried out by a Chief Executive, and Deputy Chief Executive. The Chief Executive works with the Main Board to identify and implement the strategic aims of the Charity. The senior management team is responsible for managing the day-to-day operation of the Charity. The arrangements for setting pay and remuneration for these key personnel are benchmarked against third sector salaries and other agencies that operate in the same sector.

Bribery Statement

This is a statement by the Board of the Scottish Garden City Housing Society Limited regarding the Charity’s commitment to meet its responsibilities under the provisions of the Bribery Act 2010 (which came into force on 1 July 2011).

“The Board and Executive Team will not tolerate bribery or corruption from Board members, staff, or anyone working on our behalf, including contractors. We are committed to carrying out our business transparently and fairly, and therefore, we operate a zero-tolerance policy towards bribery.

As an organisation with charitable status, The Scottish Garden City Housing Society Limited is committed to eliminating corruption and bribery and achieving the highest governance standards in all of its activities.”

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Structure, governance and management

The Trustees who served during the year and up to the date of signature of the financial statements were:

Appointment and induction of Trustees

The Board of Trustees considers the appointment of new Trustees throughout the year to maintain a diverse profile and ensure that different areas of expertise are represented. The maximum number of Trustees shall be twelve, and the minimum number of Trustees shall be six.

Trustees are appointed for three years, and after that, they are eligible for re-appointment for a further three years and only in an exceptional case may Trustees complete a final three-year term.

New Trustees are invited to attend a half-day induction to become familiarised with the work of the Charity. Areas covered include:

Decision making

Under the Rules of the Society, the Charity business is managed by a Board of Trustees, which meets a minimum of three times a year and may exercise all of the organisation's powers.

Risk management

The Charity has a Risk Register that considers all risks the Charity may be exposed to, which is reviewed regularly.

The Trustees consider the adequacy of internal control procedures and are taking steps to ensure that systems appropriate to the size and activities of the organisation are regularly reviewed, adjusted where necessary and then maintained. The appointment of our outsourced finance function to JSCA Ltd, our auditors, Saffery LLP and our legal representatives, Brodies LLP, demonstrate the Trustees’ commitment to conducting regular reviews to ensure best practices are adopted by an evolving and forward-thinking Charity.

Auditor

A resolution proposing that Saffery LLP be reappointed as auditor was put to the members at the Annual General meeting in 2024.

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THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2025

The Trustees are responsible for preparing the Trustees' report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (the United Kingdom Generally Accepted Accounting Practice).

Trustees are required to prepare financial statements for each financial year, giving a true and fair view of the charity's state of affairs and the incoming resources and application of resources, including the income and expenditure of the Charity for that year. In preparing those financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose, with reasonable accuracy at any time, the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 and the Co-operative and Community Benefit Societies Act 2014.

They are also responsible for safeguarding the Charity's assets and taking reasonable steps to prevent and detect fraud and other irregularities.

Statement of disclosure of information to the auditor

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included in the charity website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

Opinion

We have audited the financial statements of The Scottish Garden City Housing Ltd (the ‘society’) for the year ended 31 March 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Board's 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 society'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 society 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 Board is responsible for the other information. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information we are required to report that fact.

We have nothing to report in this regard.

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Co-operative and Community Benefit Societies Act 2014 and the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:

Responsibilities of the Board

As explained more fully in the Trustees' Responsibilities Statement set out on page 7, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board is responsible for assessing the society’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 Board either intends to liquidate the society or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under the Charities and Trustee Investment (Scotland) Act 2005 and under the Co-operative and Community Benefit Societies Act 2014 and report in accordance with regulations the Act made under those Acts.

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 specific procedures for the engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the charitable society’s financial statements to material misstatement and how fraud might occur, including through discussions with the Board, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the society by discussions with the Board and updating our understanding of the sector in which the society operates.

Laws and regulations of direct significance in the context of the society include Co-operative and Community Benefit Societies Act 2014, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and guidance issued by the Office of the Scottish Charity Regulator.

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the society's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the society’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the society in accordance with Section 87 of the Co-operative and Community Benefit Societies Act 2014, and to the Society’s trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the society those matters we are required to state to it 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 society for our audit work, for this report, or for the opinions we have formed.

Saffery LLP Date:......................... Statutory Auditors 9 Haymarket Square Edinburgh EH3 8RY

Saffery LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2025

Unrestricted
funds
2025
Notes
£
Income and endowments from:
Donations and legacies
3
3,423
Charitable activities
4
2,359,412
Investments
5
103,282
Other income
23
1,481,494
Total income
3,947,611
Expenditure on:
Raising funds
6
16,779
Charitable activities
7
2,196,056
Total expenditure
2,212,835
Net gains/(losses) on
investments
11
15,917
Net incoming resources
before transfers
1,750,693
Gross transfers between
funds
17,19,
20
523,530
Other gains or losses
(1)
Net movement in funds
2,274,222
Fund balances at 1 April 2024
17,871,765
Fund balances at 31 March
2025
20,145,987		 Restricted
funds
2025
£
10,000
867,134
-
39,696
916,830
-
517,169
517,169
-
399,661
(523,530)
-
(123,869)
1,804,524
1,680,655		 Total Unrestricted
funds
2025
2024
£
£
13,423
16,720
3,226,546
2,325,657
103,282
95,491
1,521,190
638,489
4,864,441
3,076,357
16,779
16,140
2,713,225
2,310,458
2,730,004
2,326,598
15,917
239,177
2,150,354
988,936
-
179,234
(1)
(1)
2,150,353
1,168,169
19,676,289
16,703,596
21,826,642
17,871,765		 Restricted
funds
2024
£
-
364,690
-
-
364,690
-
353,384
353,384
-
11,306
(179,234)
-
(167,928)
1,972,452
1,804,524		 Total
2024
£
16,720
2,690,347
95,491
638,489
3,441,047
16,140
2,663,842
2,679,982
239,177
1,000,242
-
(1)
1,000,241
18,676,048
19,676,289
Donations and legacies
3
Charitable activities
4
Investments
5
Other income
23
Total income
Expenditure on:
Raising funds
6
Charitable activities
7
Total expenditure
Net gains/(losses) on
investments
11
Net incoming resources
before transfers
Gross transfers between
funds
17,19,
20
Other gains or losses
Net movement in funds
Fund balances at 1 April 2024
Fund balances at 31 March
2025

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

BALANCE SHEET

AS AT 31 MARCH 2025

Notes
Fixed assets
Tangible assets
12
Investments
13
Current assets
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within
one year
15
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
17
Unrestricted funds
Designated funds
20
General unrestricted funds
19
Share capital		 2025
£
£
15,912,464
2,575,758
18,488,222
285,382
3,238,620
3,524,002
(185,582)
3,338,420
21,826,642
1,680,655
16,337,098
3,808,879
10
20,145,987
21,826,642		 2024
£
£
15,318,290
2,586,019
17,904,309
75,649
1,856,399
1,932,048
(160,068)
1,771,980
19,676,289
1,804,524
14,275,673
3,596,081
11
17,871,765
19,676,289		 2024
£
£
15,318,290
2,586,019
17,904,309
75,649
1,856,399
1,932,048
(160,068)
1,771,980
19,676,289
1,804,524
14,275,673
3,596,081
11
17,871,765
19,676,289
17,904,309
1,771,980
19,676,289
1,804,524
17,871,765
19,676,289

The notes on pages 15 to 31 form part of these financial statements.

==> picture [491 x 160] intentionally omitted <==

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025

2025
Notes
£
£
Cash flows from operating activities
Cash generated from operations
24
653,189
Investing activities
Purchase of tangible fixed assets
(1,013,977)
Proceeds from disposal of tangible fixed
assets
1,613,550
Purchase of investments
(1,299,467)
Proceeds from disposal of investments
1,325,645
Investment income received
103,282
Net cash generated from/(used in)
investing activities
729,033
Financing activities
Proceeds from issue of shares
1
Redemption of shares
(2)
Net cash used in financing activities
(1)
Net increase in cash and cash equivalents
1,382,221
Cash and cash equivalents at beginning of year
1,856,399
Cash and cash equivalents at end of year
3,238,620		 2024
£
£
207,551
(808,129)
658,713
(800,959)
807,315
95,491
(47,569)
2
(3)
(1)
159,981
1,696,418
1,856,399

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2025

Notes
Balance at 1 April 2023
Year ended 31 March 2024:
Net income/(expenditure)
Issue of share capital
Redemption of shares
Transfers
Balance at 31 March 2024
17,19,20
Year ended 31 March 2025:
Net income/(expenditure) before transfers
Transfers
Issue of share capital
Redemption of shares
Balance at 31 March 2025
17,19,20		 Share
capital
Unrestricted
Designated
£
£
£
12
15,653,828
1,049,756
-
1,200,970
(212,034)
2
-
-
(3)
-
-
-
(13,258,717)
13,437,951
11
3,596,081
14,275,673
-
570,519
1,180,174
-
(357,721)
881,251
1
-
-
(2)
-
-
10
3,808,879
16,337,098		 Restricted
£
1,972,452
11,306
-
-
(179,234)
1,804,524
399,661
(523,530)
-
-
1,680,655		 Total
£
18,676,048
1,000,242
2
(3)
-
19,676,289
2,150,354
-
1
(2)
21,826,642

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

Charity information

The Scottish Garden City Housing Society Limited is a Registered Society registered under the Co-Operative and Community Benefit Societies Act 2014 and Registered Charity. Charity number SC008959.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Charity's Constitution, the Co-operative and Community Benefit Societies Act 2014, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The Charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Designated funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives. These funds have been designated to specific purposes by the Trustees.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the Charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

Costs are allocated to restricted and unrestricted funds according to the use of resources expended.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Property 70 years to residual value (Note: WW1 and WW2 have their
initial cost fully depreciated to residual value)
Roof, Render and CWI 70 years
Doors and Windows 30 years
Kitchens and Bathrooms 20 years
Office equipment 3 years

The pre and post 2008 properties transferred from The Scottish Garden City Association were fair valued at the date of transfer in 2021. The fair value was treated as the deemed cost of the properties transferred and as such are not required to be subsequently revalued. In the absence of detailed records of the original cost of individual properties, the cost of property disposed of is arrived at based on average cost.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.8 Impairment of fixed assets

At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

(Continued)

1.10 Financial instruments

The Charity has only financial assets and financial liabilities of a kind that qualify as basic financial instruments.

Basic financial instruments are initially measured at transition value and subsequently measured at their settlement value.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

Bad debt provision. This estimate is based on management's knowledge of tenants and historic recoverability of rental income.

Depreciation rates used for fixed assets. These estimates are based on management's assessment of useful economic life.

Residual value of property. This estimate is based on management's assessment of residual value after 70 years.

3 Income from donations and legacies

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2025 2025 2025 2024 2024 2024
£ £ £ £ £ £
Donations and gifts 3,423 10,000 13,423 16,720 - 16,720

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

4 Income from charitable activities

Unrestricted
Restricted
funds
funds
2025
2025
£
£
Rental income
2,359,412
-
Performance related
grants
-
867,134
2,359,412
867,134		 Total
Unrestricted
Restricted
funds
funds
2025
2024
2024
£
£
£
2,359,412
2,325,657
-
867,134
-
364,690
3,226,546
2,325,657
364,690		 Total
2024
£
2,325,657
364,690
2,690,347

Performance related grants analysis

The Armed Forces Covenant Fund Trust
The Scottish Veterans Fund
OVA Major Capital Grant
Defence Garden Scheme		 2025
£
435,392
-
428,242
3,500
867,134		 2024
£
344,690
20,000
-
-
364,690

Performance related grants

The grant from The Armed Forces Covenant Fund Trust is for reducing veterans homelessness. The grant from The Scottish Veterans Fund is for tenancy sustainment. The OVA Major Capital Grant is for property improvements and renovation. The Defence Garden Scheme for communal garden work.

There is a contingent asset of £126,989 (2024: £562,381) in relation to the grant from The Armed Forces Covenant Fund Trust as this grant is based on performance. There is also a contingent liability in relation to this grant as amounts totalling £29,018 (2024: £128,198) will be paid to Defence Medical Welfare contingent on the receipt of grants from The Armed Force Covenant Fund Trust.

There is a contingent asset of £569,306 (2024: £nil) in relation to the OVA Major Capital Grant as this grant is based on performance.

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

5 Income from investments

Unrestricted Unrestricted
funds funds
2025 2024
£ £
Other income 103,282 95,491
6 Raising funds
**Unrestricted ** Unrestricted
funds funds
2025 2024
£ £
Investment management 16,779 16,140
16,779 16,140

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

7 Charitable activities in relation to Housing

Staff costs
Depreciation and impairment
Charitable activities
Support and consultancy
HR
Training
Central office
Insurance
Legal
Finance
Grant funding of activities (see note 8)
Support costs
Governance costs
Analysis by fund
Unrestricted funds
Restricted funds
Grants payable
Grants to institutions:
The Defence Medical Welfare Service		 2025
£
445,987
259,950
1,638,708
1,077
3,483
5,638
54,063
10,120
22,309
92,718
2,534,053
99,180
77,511
2,481
2,713,225
2,196,056
517,169
2,713,225
Grants
payable
2025
£
99,180		 2024
£
394,625
238,362
1,648,851
1,406
1,872
19,356
53,585
7,560
32,196
101,692
2,499,505
78,519
80,669
5,149
2,663,842
2,310,458
353,384
2,663,842
Grants
payable
2024
£
78,519

8 Grants payable

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

9
Net movement in funds
2025
£
The net movement in funds is stated after charging/(crediting):
Fees payable for the audit of the charity's financial statements
20,430
Depreciation of owned tangible fixed assets
259,950
Gain on disposal of tangible fixed assets
(1,453,697)
10
Employees
The average monthly number of employees during the year was:
2025
Number
12
Employment costs
2025
£
Wages and salaries
386,689
Social security costs
33,745
Other pension costs
25,553
445,987		 2024
£
33,120
238,362
(638,436)
2024
Number
11
2024
£
342,720
28,911
22,994
394,625

An ex gratia payment totalling £nil was made in the reporting period as key employee compensation in order to retain critical service delivery. Authority under part 5.1 of the organisations rules. (2024: £3,649).

After the year end, staff pension contributions of £3,087 were outstanding (2024: £2,042).

The number of employees whose annual remuneration was more than £60,000
is as follows:
2025 2024
Number Number
£70,000 - £80,000 1 1
11 Net gains on investments
**Unrestricted ** Unrestricted
funds funds
2025 2024
£ £
Realised and unrealised gains on investments 15,917 239,177

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

12 Tangible fixed assets

Cost
At 1 April 2024
Additions
Disposals
At 31 March 2025
Depreciation and impairment
At 1 April 2024
Depreciation charged in the year
Eliminated in respect of disposals
At 31 March 2025
Carrying amount
At 31 March 2025
At 31 March 2024		 WW1
£
923,635
231,595
-
1,155,230
31,217
23,629
-
54,846
1,100,384
892,418		 WW2
£
3,311,490
723,017
(45,423)
3,989,084
101,116
73,195
(874)
173,437
3,815,647
3,210,374		 Office & IT
Equipment
£
24,152
2,311
-
26,463
17,619
5,619
-
23,238
3,225
6,533		 Houses for
Heroes
£
4,768,531
-
-
4,768,531
633,601
61,970
-
695,571
4,072,960
4,134,930		 Property Pre
2008
Property Post
2008
£
£
5,709,491
1,584,092
48,295
8,759
-
(121,308)
5,757,786
1,471,543
148,049
71,499
75,908
19,629
-
(6,004)
223,957
85,124
5,533,829
1,386,419
5,561,442
1,512,593		 Total
£
16,321,391
1,013,977
(166,731)
17,168,637
1,003,101
259,950
(6,878)
1,256,173
15,912,464
15,318,290

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

12 Tangible fixed assets

(Continued)

Included in WW2 are 16 leasehold properties. (2024: 16 properties) These are included at cost £205,614, total depreciation £4,756 and carrying amount of £200,858. (2024: Cost £160,818, total depreciation £2,090, carrying amount £158,728).

Included in Houses for Heroes are 12 shared ownership properties (2024: 12 properties). These are included at cost £371,956, total depreciation £49,920 and carrying amount of £322,036. (2024: Cost £371,956, total depreciation £45,138 and carrying amount £326,818).

Included in Houses for Heroes are 14 leasehold properties. (2024: 14 properties) These are included at cost £1,387,663, total depreciation £204,510 and carrying amount of £1,183,153. (2024: Cost £1,387,663, total depreciation £186,669 and carrying amount £1,200,994).

Included in Post 2008 is 1 leasehold property. (2024: 1 property) This is included cost £121,308, total depreciation £7,044 and carrying amount of £114,264. (2024: Cost £121,308, total depreciation £5,484 and carrying amount £115,824).

13 Fixed asset investments

Listed
investments
£
Cost or valuation
At 1 April 2024
2,540,935
Additions
1,299,467
Valuation changes
(949)
Movement in cash
-
Disposals
(1,286,329)
At 31 March 2025
2,553,124
Carrying amount
At 31 March 2025
2,553,124
At 31 March 2024
2,540,935
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income		 Cash in
portfolio
Total
£
£
45,084
2,586,019
-
1,299,467
-
(949)
(22,450)
(22,450)
-
(1,286,329)
22,634
2,575,758
22,634
2,575,758
45,084
2,586,019
2025
2024
£
£
122,774
54,673
102,318
4,535
60,290
16,441
285,382
75,649

14 Debtors

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

15 Creditors: amounts falling due within one year

Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income
16
Retirement benefit schemes
Defined contribution schemes
Charge to profit or loss in respect of defined contribution schemes		 2025
£
8,577
119,977
4,783
52,245
185,582
2025
£
25,553		 2024
£
8,517
90,518
2,865
58,168
160,068
2024
£
22,994

The Charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Charity in an independently administered fund.

17 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

Post 2008 Properties
Houses for Heroes Appeal
Iraq Veterans' Fund
Shawmuir Cottage
Armed Forces Covenant Fund
Trust
AFCFT - OVA Major Capital
OP Cairngorm
Defence Gardens Scheme		 At 1 April
2024
Incoming
resources
Resources
expended
£
£
£
1,505,502
39,696
(19,629)
239,625
-
-
10,140
-
-
15,000
-
(360)
34,257
435,392
(440,160)
-
428,242
(53,520)
-
10,000
-
-
3,500
(3,500)
1,804,524
916,830
(517,169)		 Transfers
At 31 March
2025
£
£
(155,000)
1,370,569
-
239,625
-
10,140
-
14,640
-
29,489
(368,530)
6,192
-
10,000
-
-
(523,530)
1,680,655		 Transfers
At 31 March
2025
£
£
(155,000)
1,370,569
-
239,625
-
10,140
-
14,640
-
29,489
(368,530)
6,192
-
10,000
-
-
(523,530)
1,680,655
1,680,655

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

17
Restricted funds
Previous year:
Post 2008 Properties
Houses for Heroes Appeal
Houses for Heroes Consortium
Funding
Iraq Veterans' Fund
Shawmuir Cottage
Armed Forces Covenant Fund
Trust
Scottish Veterans Fund		 At 1 April
2023
Incoming
resources
Resources
expended
£
£
£
1,525,879
-
(20,377)
239,625
-
-
179,234
-
-
10,140
-
-
17,574
-
(2,574)
-
344,690
(310,433)
-
20,000
(20,000)
1,972,452
364,690
(353,384)		 (Continued)
Transfers
At 31 March
2024
£
£
-
1,505,502
-
239,625
(179,234)
-
-
10,140
-
15,000
-
34,257
-
-
(179,234)
1,804,524

The Post 2008 Properties fund holds funds restricted in connection with the values of the fixed asset properties.

The Houses for Heroes fund is to enable the Charity to build houses for disabled ex-Service personnel.

The Iraq Veterans' Fund purpose is to provide adaptation to houses for veterans of the war in Iraq.

The Shawmuir Cottage Fund purpose is to provide funding for the refurbishment of Shawmuir Cottage.

The Armed Forces Covenant Fund Trust purpose is to reduce homelessness for Scottish veterans.

The Scottish Veterans Fund purpose is for work in connection with tenancy sustainment.

The transfer in 2024 was authorised for reallocation and used for property improvements, in 2025 to reallocate proceeds from property given for unrestricted purposes and for capital funds released to relevant asset class as work carried out.

OVA Major Capital fund purpose is for property improvements and renovation.

OP Cairngorm fund purpose is to provide outdoor experiences to beneficiaries through Operation Cairngorm.

Defence Gardens Scheme purpose is for maintenance and improvements to communal garden areas.

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

18 Analysis of net assets between funds

Unrestricted
funds
2025
£
Fund balances at 31 March 2025 are represented by:
Tangible assets
14,541,895
Investments
2,575,758
Net current assets/(liabilities)
3,028,334
20,145,987
Unrestricted
funds
2024
£
Fund balances at 31 March 2024 are represented by:
Tangible assets
13,812,788
Investments
2,586,019
Net current assets/(liabilities)
1,472,958
17,871,765		 Restricted
funds
2025
£
1,370,569
-
310,086
1,680,655
Restricted
funds
2024
£
1,505,502
-
299,022
1,804,524		 Total
2025
£
15,912,464
2,575,758
3,338,420
21,826,642
Total
2024
£
15,318,290
2,586,019
1,771,980
19,676,289

The unrestricted funds include designated funds outlined in note 19.

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

19 Unrestricted funds

These are unrestricted funds which are material to the Charity's activities.

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Transfers (Losses)/gains Balance at Incoming Resources Transfers (Losses)/gains Balance at
1 April 2023 resources expended 1 April 2024 resources expended 31 March 2025
£ £ £ £ £ £ £ £ £ £ £
Houses for
Heroes 4,188,101 - - (4,188,101) - - - - - - -
General
Reserve 11,465,727 3,076,354 (2,114,561) (9,070,616) 239,177 3,596,081 2,533,611 (1,979,009) (357,721) 15,917 3,808,879

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

20 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Property Development/Property Fund and Repairs &
Maintenance
OVA Major Capital
Selkirk Funds
Capital additions
WW1 Properties
WW2 Properties
Pre 2008 Properties
Post 2008 Properties
Houses for Heroes
Special Projects		 Balance at
1 April 2023
£
1,039,756
-
10,000
-
-
-
-
-
-
-
1,049,756		 Resources
expended
£
-
-
(248)
-
(18,061)
(57,095)
(74,660)
-
(61,970)
-
(212,034)		 Transfers
£
(786,328)
-
-
79,524
910,479
3,267,469
5,636,101
7,092
4,196,900
126,714
13,437,951		 Balance at
1 April 2024
£
253,428
-
9,752
79,524
892,418
3,210,374
5,561,441
7,092
4,134,930
126,714
14,275,673		 Movement in funds
Incoming
resources
Resources
expended
Transfers
Balance at
31 March 2025
£
£
£
£
282,800
-
74,923
611,151
-
-
183,532
183,532
-
-
-
9,752
989,800
-
(380,908)
688,416
-
(23,628)
231,595
1,100,385
-
(72,321)
677,594
3,815,647
-
(75,907)
48,295
5,533,829
-
-
8,759
15,851
-
(61,970)
-
4,072,960
141,400
-
37,461
305,575
1,414,000
(233,826)
881,251
16,337,098		 Movement in funds
Incoming
resources
Resources
expended
Transfers
Balance at
31 March 2025
£
£
£
£
282,800
-
74,923
611,151
-
-
183,532
183,532
-
-
-
9,752
989,800
-
(380,908)
688,416
-
(23,628)
231,595
1,100,385
-
(72,321)
677,594
3,815,647
-
(75,907)
48,295
5,533,829
-
-
8,759
15,851
-
(61,970)
-
4,072,960
141,400
-
37,461
305,575
1,414,000
(233,826)
881,251
16,337,098
16,337,098

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

20 Designated funds

(Continued)

Property Development Fund / Property Fund and Repairs and Maintenance – For the development of new properties and property improvement projects. Name to be Property Development Fund going forward,

Selkirk Funds – For educational purposes for tenants and families

Capital additions - For capital additions

WW1 Properties - Funds designated to hold the value of the fixed asset properties

WW2 Properties - Funds designated to hold the value of the fixed asset properties

Pre 2008 Properties - Funds designated to hold the value of the fixed asset properties

Post 2008 Properties - Funds designated to hold the value of the fixed asset properties

Houses for Heroes - Funds designated to hold the value of the fixed asset properties

Special Projects - Fund for special projects

OVA Major Capital - Fund to hold 30% contribution to capital works until used.

Transfers - The transfers in the year are mostly to reallocate the value of capital works to the relevant asset class and to reallocate proceeds from property disposals.

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

21 Operating lease commitments

Lessee

At the reporting end date the Charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years
In over five years		 2025
£
85,156
311,895
270,807
667,858		 2024
£
53,093
244,049
295,252
592,394

Lease payments made in the year amounted to £57,328 (2024: £50,263).

22 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel was as follows:

2025 2024
£ £
Aggregate compensation 146,478 153,668

2 Trustees were reimbursed travel and accommodation expenses incurred in attending meetings. These totalled £486 for the year to 31 March 2025 (2024: £1,657).

23 Other income

The Other income in the year ended 31 March 2025 includes a £1,453,697 (2024: £638,449) gain on disposal of tangible assets, £14 (2024: £40) bank compensation and £67,479 from an insurance claim (2024: nil).

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

24
Cash generated from operations
2025
£
Surplus for the year
2,150,354
Adjustments for:
Investment income recognised in statement of financial activities
(103,282)
Gain on disposal of tangible fixed assets
(1,453,697)
Fair value (gains) and losses on investments
(15,917)
Depreciation and impairment of tangible fixed assets
259,950
Movements in working capital:
(Increase) in debtors
(209,733)
Increase/(decrease) in creditors
25,514
Cash generated from operations
653,189
25
Analysis of changes in net funds
At 1 April 2024
Cash flowsAt 31
£
£
Cash at bank and in hand
1,856,399
1,382,221
1,856,399
1,382,221		 2024
£
1,000,242
(95,491)
(638,449)
(239,177)
238,362
(56,667)
(1,269)
207,551
March 2025
£
3,238,620
3,238,620