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← Alex Scott Hospital Eventide Home

2025-07-20-accounts

Charity registration number SC016300 (Scotland)

ALEXANDER SCOTT'S HOSPITAL (EVENTIDE HOME) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 20 JULY 2025

AQ Accountancy Limited Chartered Accountants Elm House Cradlehall Business Park Inverness United Kingdom V2 5GH

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Reverend Thomas R Calder
Most Reverend Bishop Mark Strange,
Bishop ofMoray, Ross and Caithness
Reverend Norma Milne
Mrs Nora Morrison
Mr Graham Mitchell
Charity number (Scotland) $C016300
Principal address Gladstone Road
Huntly
AB54 8BD
Auditor A9Accountancy Limited
Elm House
Cradlehall Business Park
Inverness
United Kingdom
IV2 5GH
Solicitors Murdoch, McMath & Mitchell
27/29 Duke Street
Huntly
AB548DL

ALEXANDER SCOTT'S HOSPITAL (EVENTIDE HOME)

CONTENTS

Page
Trustees’ report 1-3
Statement oftrustees’ responsibilities 4
Independent auditor's report 5-7
Statement of financial activities 8
Balance sheet 9
Statement of cash flows 10
Notestothefinancialstatements 11-25

ALEXANDER SCOTT'S HOSPITAL (EVENTIDE HOME)

TRUSTEES' REPORT FOR THE YEAR ENDED 20 JULY 2025

The trustees present their annual report and financial statements for the year ended 20 July 2025.

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 Constitution 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)".

Objectives and activities

The charity was established by a charitable Trust Deed on 29 May 1868 to benefit the welfare of the elderly within the Town of Huntly and the surrounding parishes.

The objective was met by the establishment and continuing function of a Residential Home for the elderly.

The Board of Trustees meet on a regular basis to review and supervise the ongoing business and planning for the future of the charity.

The Trustees have always aimed to have high occupancy levels to ensure that as many local residents as possible are able to benefit from the high level of care. The Trustees recognise the difficult financial situation in the social care sector which has proved to be challenging and indeed became more challenging during the pandemic and the years thereafter. The Trustees ultimate goal is to provide the best care and attention for the home's residents, and this is considered of paramount importance. The Trustees recognise the care home fees for self-financing residents require to be increased and the fee level is now substantially higher than it was a few years ago and will continue to increase due to the inadequacy of funding provided by Aberdeenshire Council.

Achievements and performance

Significant activities and achievements against objectives

The financial year has, yet again, been highly challenging for the Charity. The continuing poor economic climate led to overheads and in particular energy prices increasing but the Local Authority was not able to increase funding accordingly. The Trustees are in agreement with the Government's commitment to increasing staff wages in line with the living and minimum wages but seek to make their views known on the funding situation which is far from satisfactory. This does not only apply to the Trustees and Alexander Scott's Hospital (Eventide Home) but to every care home provider in Scotland and the United Kingdom. It is not satisfactory for the costs of care to continue to rise for self-financing residents. This is inequitable and places an increased burden on those who have saved for their later years. The Care Inspectorate insist on minimum staffing levels and this together with continuing increases to the minimum wage place a heavy burden on the Charity.

Financial review

The home incurred a deficit in resources of £310,314 (2024 - £72,444). The deficit incurred is after a non-cash depreciation charge of £56,252 (2024 - £52,285). This therefore gives a deficit excluding depreciation of £254,062 (2024 - £20,159).

The valuation change in the investment pack was in line with expectations given the movement in the stock market during the year and this amounted to £18,387 (2024 - £40,678).

Reserves policy

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six months' expenditure. The Trustees consider that this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity's current activities while consideration is given to ways in which additional funds may be raised.

At the year-end unrestricted reserves were £684,388 (2024 - £949,935), of which £71,895 (2024 - £56,347) is represented by tangible fixed assets so is not readily available funds. The level of readily available funds is below the 6-month level but is above the 3-month level considered necessary by the trustees. Any shortfalls in funding may be able to be covered by the sale of the investments as they can be sold at the discretion of the Trustees when required. On these basis the Trustees consider the level of reserves sufficient as at the year-end.

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> ALEXANDER SCOTT'S HOSPITAL (EVENTIDE HOME) TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 20 JULY 2025 peaa a

Principal funding sources

The principal income of the charity is derived from Residents Maintenance Charges. Payment is received primarily from Local Authorities and then topped up by contributions from the residents. The weekly charge for those residents who are supported by the council has risen from £828 at the start of the financial year under review to £884 at the end of the period, which is the same throughout Scotland for a Home such as Alexander Scott's Hospital and has been fixed by the Scottish Government and Local Authorities after negotiation with Care Scotland representing care homes. For self-funding residents the charge is £1,495 per week at the time of writing. The Trustees realise the self-funding residents charges will have to continue to increase significantly over the next few years. They recognise other homes in the area are charging considerably more and Alexander Scott's Hospital will require to meet the imposition of the living wage and minimum wage through additional charges. The continuing increase in wages and maintaining a differential between domestic and care staff is a constant challenge to the Home's finances. It is a specific financial aim that the home should be fully occupied by residents, but this is currently not possible, due to a lack of Local Authority funding.

The charity's investments are maintained by Stockbrokers in Edinburgh on a non-discretionary basis. Transactions involving investments are decided by the Trustees following advice from the Edinburgh Stockbrokers. The Stock Market has been somewhat volatile and the Trustees were required to sell further investments to meet challenges brought about by the number of deaths and resulting empty rooms in Winter 2024/2025.

The operating risk foremost in the Trustees minds is the lack of financial support from the Local Authority due to the Government Policy of maintaining people in their own homes and a general lack of adequate public funding for the Care Home Sector. The weekly charge for residents supported by the Local Authority, at the time of writing in early 2026 is £884 compared to those for self-funding residents of £1,495. This figure is becoming untenable and only pressure on the Local and National Governments can bring about a change. There is a continuing lack of direction from the Government on the whole social care question and this together with the external threat from Stock Market volatility, the uncertainty surrounding the adverse effects of Brexit, the Energy Crisis and increases in food costs mean the Trustees continue to look forward with great unease to the years ahead.

Investment policy

The investment policy is subject to advice given by independent investment managers having regard to the Home's status as a charity. The aims are to maintain the capital value of the investments and to obtain a reasonable level of income.

Plans for future periods

The Trustees will continue to use their best endeavours to ensure the safety and wellbeing of the residents of the home and allow them to live as fulfilling a life as is possible in a safe and comfortable environment. The safety of the residents and their physical and mental wellbeing is paramount. There urgently requires to be a change in attitude from Local and Central Government to social care and this is something that the Trustees hope that groups such as Scottish Care (who act on behalf of homes) will be able to pursue given the rising profile of the hardship which care homes and their residents have endured post pandemic.

Coronavirus (COVID-19) The Continuing Aftermath

The Trustees identified early in the pandemic that any outbreak of Coronavirus in the home could posea significant and potentially fatal threat to the charity. After successfully keeping the Home free from Covid-19 there were two outbreaks in the Hospital in March and August 2022. The hospital’s Matron moved on from her role in 2023 and her Deputy was appointed as the new Matron. There were delays with the accounts and audit procedures which resulted in the Year End 20 July 2020 Accounts only being finalised and submitted in 2023. Following on from this period of instability an Energy Crisis emerged which compounded the difficulties experienced during the years of the Pandemic. There continues to be pressure on prices, known as "the cost of Living Crisis" which affects all areas of society in general. Locally, there are issues with other care homes recruiting staff. The Trust has not been required to employ "Agency Staff’ which is regarded as highly desirable. A new and continuing threat to the Home is the number of deaths occurring over the winter period and the inability of Aberdeenshire Council to fill these resident places due to their financial constraints. Having empty rooms places strain on the finances of the Charity.

Structure, governance and management

The charity was established by a charitable trust deed on 29 May 1868.

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TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 20 JULY 2025

The trustees who served during the year and up to the date of signature of the financial statements were: Reverend Thomas R Calder

Most Reverend Bishop Mark Strange, Bishop of Moray, Ross and Caithness

Reverend Norma Milne Reverend Canon Michael Last (Resigned 7 August 2025) Mrs Nora Morrison Mr Graham Mitchell

Recruitment and appointment of trustees

The Board of Trustees currently include representatives from local and regional churches, an architect and landowner, and a local businesswoman.

Trustees are appointed in accordance with the Hospital Order Confirmation Acts. There is no specific training programme in place for new trustees, though they are made aware of their responsibilities through reading the Office of the Scottish Charity Regulator publication ‘Guidance and Good Practice for Charity Trustees’. It was decided that further Trustees were required and discussions amongst the Trustees as to suitable persons was initiated. The Trustees agreed it was imperative for the continuance of the Trust for candidates to be carefully discussed prior to being approached and thereafter appointed.

Remuneration policy

Trustees set key management remuneration based on comparable positions within the care sector and with regard to qualifications held.

Latest developments

The winter of 2024/2025 proved to be particularly challenging for the Charity with the number of unexpected deaths being considerably higher than in previous years. This resulted in an unprecedented number of empty rooms. Aberdeenshire Council funding for new residents was not forthcoming during the early months of 2025 and this contributed to the large deficit during the financial year. This continues to be a primary factor contributing to the financial difficulties of the Charity.

There is still general concern about the energy price, and food increases and the stability of global markets in general.

The trustees’ report was approved by the Board of Trustees.

Reverend Thomas R Calder

Trustee

Date: dt aleoae

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> ALEXANDER SCOTT'S HOSPITAL (EVENTIDE HOME) STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 20 JULY 2025

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 to charities in Scotland requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping sufficient 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 (as amended) and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping sufficient 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 Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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- ALEXANDER SCOTT'S HOSPITAL (EVENTIDE HOME) INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF ALEXANDER SCOTT'S HOSPITAL (EVENTIDE HOME)

Opinion

We have audited the financial statements of Alexander Scott's Hospital (Eventide Home) (the ‘charity’) for the year ended 20 July 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements: - give a true and fair view of the state of the charity's affairs as at 20 July 2025 and of its incoming resources and application of resources, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the Charities Act 2011.

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 trustees' use of the going concem 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 charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. 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.

Matters on which we are required to report by exception

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INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF ALEXANDER SCOTT'S HOSPITAL (EVENTIDE HOME)

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Responsibilities of trustees As explained more fully in the statement of trustees' responsibilities, 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 trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to 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 section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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 this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below.

We obtained an understanding of the legal and regulatory frameworks that are applicable to the charity, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include: e United Kingdom Generally Accepted Accounting Practice * Corporation Tax legislation * Charities and Trustees Investment (Scotland) Act 2005 * Charities Accounts (Scotland) Regulations 2006 ¢ VAT legislation ¢ Care Inspectorate Requirements We gained an understanding of how the charity is complying with these laws and regulations by making enquiries of management. We corroborated these enquiries through our review of external inspections, relevant correspondence with regulatory bodies and board meeting minutes.

We assessed the susceptibility of the charity's financial statements to material misstatement, including how fraud might occur, by meeting with management to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management oversee the implementation and operation of controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each identified risk.

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INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF ALEXANDER SCOTT'S HOSPITAL (EVENTIDE HOME)

The following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that the risk of not detecting a material risk due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

or ca ae Paul Capewell FCA CA (Senior Statutory Auditor) For and on behalf of A9 Accountancy Limited, Statutory Auditor Chartered Accountants

Elm House

Cradlehall Business Park

Inverness V2 5GH

UnitedDate: 11.03.1294 NPs te

AQ Accountancy Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

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STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 20 JULY 2025

Unrestricted Restricted Total Total
funds funds
2025 2025 2025 2024
Notes £ £ £ £
Income and endowments from:
Donations and legacies 3 71,122 - 71,122 29,952
Charitable activities 4 1,781,651 - 1,781,651 1,770,397
Investments 5 23,771 - 23,771 32,605
Other income 6 330 - 330 3,250
Total income 1,876,874 - 1,876,874 1,836,204
Expenditure on:
Raising funds 7 3,281 - 3,281 3,364
Charitable activities 8 2,169,360 44,768 2,214,128 1,947,869
Other expenditure 14 - - - 239
Total expenditure 2,172,641 44,768 2,217,409 1,951,472
Net gains/(losses) on investments 15 30,220 - 30,220 42,824
Netexpenditure (265,547) (44,768) (310,315) (72,444)
Netmovement in funds 10 (265,547) (44,768) (310,315) (72,444)
Reconciliation offunds:
Fund balances at 21 July2024 949,935 623,491 1,573,426 1,645,870
Fundbalancesat20July2025 684,388 578,723 1,263,111 1,573,426

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

8

BALANCE SHEET

AS AT 20 JULY 2025

2025 2024
Notes £ £ £ £
Fixed assets
Tangible assets 17 650,616 679,838
Investments 18 454,196 603,314
1,104,812 1,283,152
Current assets
Stocks 20 10,618 13,783
Debtors 21 186,771 153,208
Cash at bank and in hand 228,515 342,362
425,904 509,353
Creditors: amounts falling due within 22
oneyear 267,605 219,079
Net current assets 158,299 290,274
Total assets less current liabilities 1,263,111 1,573,426
Thefunds ofthe charity
Restricted income funds 25 578,723 623,491
Unrestricted funds - general 373,209 627,013
Unrestricted funds - Revaluation reserve 311,179 322,922
Totalfunds 1,263,111 1,573,426

The financial statements were approved by the trustees on mradL026

Reverend Thomas R Calder Trustee

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ALEXANDER SCOTT'S HOSPITAL (EVENTIDE HOME)

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 20 JULY 2025

==> picture [491 x 259] intentionally omitted <==

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |2025|2024| |Notes|£|£|£|£| |Cash|flows|from|operating|activities| |Cash|absorbed|by|operations|31|(289,926)|(186,358)| |Investing|activities| |Purchase|of tangible|fixed|assets|(27,030)|-| |Purchase|of investments|(151,352)|-| |Proceeds|from|disposal|of|investments|330,690|72,066| |Investment|income|received|23,771|32,605| |Net cash|generated|from|investing|activities|176,079|104,671| |Net cash|generated|from|financing|activities|-|-| |Net decrease|in|cash|and|cash|equivalents|(113,847)|(81,687)| |Cash|and|cash|equivalents|at|beginning|of year|342,362|424,049| |Cash|and|cash|equivalents|at end|of year|228,515|342,362|

----- End of picture text -----

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* ALEXANDER SCOTT'S HOSPITAL (EVENTIDE HOME) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 20 JULY 2025

Charity information

Alexander Scott's Hospital (Eventide Home) is a trust established by charitable deed trust. Its office is located at Gladstone Road, Huntly, AB54 8BD.

1.1 Accounting convention The financial statements have been prepared in accordance with the charity's Constitution, 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 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, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

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.

This expectation is based on the substantial investment portfolio held by the charity which is sufficient to absorb ongoing cash shortfalls in excess of those expected to occur in the twelve months following the date these financial statements are signed. The trustees have concluded that there is no material uncertainty in relation to going concern.

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

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.

Hospital charges are recognised when the service has been provided to the resident.

Income from donations and grants are recognised on receipt, unless performance conditions apply which either limit recognition until a future period or require early recognition.

Investment income is brought into account in the year in which it is receivable.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 20 JULY 2025

(Continued)

All expenditure is included on an accruals basis and is recognised when there is a legal or constructive obligation to pay for expenditure. All costs have been directly attributed to one of the functional categories of expenditure and include irrecoverable VAT.

Expenditure on charitable activities includes the costs directly incurred directly in achievement of the charity's objectives and support costs, which indirectly support the charities activities.

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:

Heritable property 2-10% straight line Owners’ Improvements 10% reducing balance Plant and Equipment 20% reducing balance Motor vehicles 20% reducing balance

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.

Gains and losses on disposal and revaluation of investments are recognised in net income/(expenditure).

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).

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.10 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.

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* ALEXANDER SCOTT'S HOSPITAL (EVENTIDE HOME) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 20 JULY 2025 a 1Accounting policies (Continued)

1.11 Financial instruments The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settle, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Derecognition of financial liabilities Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.12 Employee benefits

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.

1.13 Retirement benefits

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

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' ALEXANDER SCOTT'S HOSPITAL (EVENTIDE HOME) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 20 JULY 2025

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.

The following are considered to be either judgements that have had the most significant effect on the amounts recognised in the financial statements, or estimates that are dependent upon assumptions which could change in the next financial year and have a material effect on the carrying amounts of assets and liabilities recognised on the balance sheet:

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 71,122 - 71,122 17,899 - 17,899
Grants - - - - 12,053 12,053
7AA22 - 71,122 17,899 12,053 29,952
Unrestricted Unrestricted
funds funds
2025 2024
£ £
Charitable activities
Hospitalcharges 1,781,651 1,770,397

ae fas

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 20 JULY 2025

5 Income from investments

Unrestricted Unrestricted
funds funds
2025 2024
£ £5
Income from listed investments 18,021 24,846
Interest receivable 5,750 7,759
23,771 32,605

All income from investments was unrestricted in both the current and prior year.

6 Other income

Unrestricted Unrestricted
funds funds
2025 2024
£ £
Other income 330 3,250
7 Expenditure on raising funds
Unrestricted Unrestricted
funds funds
2025 2024
£ £
Fundmanagercosts 3,281 3,364

All expenditure on raising funds was unrestricted in both the current and prior year.

= B=

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 20 JULY 2025

8 Expenditure on charitable activities

Charitable Charitable
activities activities
2025 2024
£ £
Direct costs
Staffcosts 1,669,368 1,514,565
Depreciation and impairment 56,252 52,285
Rates, insurance and subscriptions 65,885 65,183
Light and heat 129,469 53,056
Repairs and maintenance 98,378 92,286
Telephone and internet 2,640 2,468
Food 108,391 92,470
Training 15,539 12,134
Sundry expenses 204 222
Bank charges 1,972 2,426
2,148,098 1,887,095
Share ofsupport and governance costs (see note 9)
Support 38,400 38,400
Governance 27,630 22,374
2,214,128 1,947,869
Analysis by fund
Unrestricted funds 2,169,360 1,902,773
Restricted funds 44,768 45,096
2,214,128 1,947,869

9 Support costs allocated to activities

2025 2024
£ £
Basis ofallocation
Clerk and treasurer 38,400 38,400
Governance costs Direct 27,630 22,374
66,030 60,774
Analysed between:
Charitableactivities 66,030 60,774

=16-

’ ALEXANDER SCOTT'S HOSPITAL (EVENTIDE HOME)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 20 JULY 2025

==> picture [489 x 423] intentionally omitted <==

----- Start of picture text -----
||||||||||| |---|---|---|---|---|---|---|---|---|---| |9|Support|costs|allocated|to|activities|(Continued)| |2025|2024| |Governance|costs|comprise:|£|=| |Audit|fees|19,931|15,834| |Accountancy|fees|7,699|6,540| |27,630|22,374| |10|Net movement|in|funds|2025|2024| |£|£| |The|net|movement|in|funds|is|stated|after|charging/(crediting):| |Fees|payable|to|the|charity's|auditor:| |-|for the|audit|of the|charity's|financial|statements|19,931|15,834| |-|for other|assurance|services|7,699|6,540| |Depreciation|of owned|tangible|fixed|assets|56,252|52,285| |Loss|on|disposal|of tangible|fixed|assets|-|239| |11.|Auditor's|remuneration| |Fees|payable|to|the|charity's|auditor|and|associates:|2025|2024| |£|£| |For|audit|services| |Audit|of the|financial|statements|of the|charity|16,625|15,834| |Audit|of the|prior|year|financial|statements|of the|charity|3,306|-| |19,931|15,834| |Non-audit|services| |Preparation|of charity's|annual|accounts|7,699|6,540|

----- End of picture text -----

12 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

13. Employees

The average monthly number of employees during the year was:

==> picture [463 x 45] intentionally omitted <==

----- Start of picture text -----
|||||| |---|---|---|---|---| |2025|2024| |Number|Number| |Care|home|staff|77|75|

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= 47'=

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 20 JULY 2025

13 Employees

Employees (Continued)
Employment costs 2025 2024
£ £
Wages and salaries 1,522,943 1,398,663
Social security costs 117,583 90,671
Other pension costs 28,842 25,231
1,669,368 1,514,565

There were no employees whose annual remuneration was more than £60,000.

Remuneration of key management personnel

The remuneration of key management personnel was as follows:

2025 2024
£ £
Aggregate compensation 53,586 50,893
14 Other expenditure
Unrestricted Unrestricted
funds funds
2025 2024
£ £
Net loss on disposal oftangible fixed assets - 239
15 Gains and losses on investments
Unrestricted Unrestricted
funds funds
2025 2024
Gains/(losses) arising on: £ £
Revaluation of investments 18,387 40,678
Sale of investments 11,833 2,146
30,220 42,824

16 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

’ ALEXANDER SCOTT'S HOSPITAL (EVENTIDE HOME)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 20 JULY 2025

17 Tangible fixed assets

Tangible fixed assets
Heritable
property		 Owners’
Improvements		 Plantand
Equipment		 Motor
vehicles		 Total
£ £ £ £ £
Cost
At 21 July2024 1,233,699 651,384 119,814 25,000 2,029,897
Additions - 1,586 14,949 10,495 27,030
At 20 July 2025 1,233,699 652,970 134,763 35,495 2,056,927
Depreciation and impairment
At 21 July 2024 614,261 607,883 109,469 18,446 1,350,059
Depreciation charged in the year 43,458 4,509 4,875 3,410 56,252
At 20 July2025 657,719 612,392 114,344 21,856 1,406,311
Carrying amount
At 20 July 2025 575,980 40,578 20,419 13,639 650,616
At20July2024 619,438 43,501 10,345 6,554 679,838

18 Fixed asset investments

Listed
investments
£
Cost or valuation
At 21 July 2024 603,314
Additions 151,352
Valuation changes 18,387
Disposals (318,857)
At 20 July 2025 454,196
Carrying amount
At 20 July 2025 454,196
At 20 July 2024 603,314
Financial instruments
2025 2024
£ £
Carrying amount offinancial assets
Debt instruments measured at amortised cost 82,724 70,225
Equity instruments measured at cost less impairment 454,196 603,314
Carrying amount offinancial liabilities
Measuredatamoritisedcost 200,394 189,012

19 Financial instruments

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 20 JULY 2025

20 Stocks
2025 2024
£ £
Consumables 10,618 13,783
The total costs of stocks recognised as an expense are £108,391 (2024 - £92,470)
21 Debtors
2025 2024
Amounts falling due within one year: £ £
Trade debtors 82,724 70,225
Prepayments and accrued income 104,047 82,983
186,771 153,208
22 Creditors: amounts falling due within one year
2025 2024
Notes £ £
Other taxation and social security 51,176 10,507
Deferred income 23 16,035 19,560
Trade creditors 45,243 31,154
Other creditors 1,374 1,274
Accruals 153,777 156,584
267,605 219,079
23 Deferred income
2025 2024
£ £
Other deferred income 16,035 19,560
Deferred income is included in the financial statements as follows:
2025 2024
£ £
Deferred income is included within:
Current liabilities 16,035 19,560
Movementsintheyear:

«2Oi=

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 20 JULY 2025

23 Deferred income

(Continued)

Deferred income at 21 July 2024 19,560 20,529
Released from previous periods (19,560) (20,529)
Resources deferred in the year 16,035 19,560
Deferred income at 20 July 2025 16,035 19,560
Deferred income relates to hospital charges received in advance.
24 Retirement benefitschemes
2025 2024
Defined contribution schemes £ £
Chargetoprofitorlossinrespectofdefinedcontributionschemes 28,842 25,231

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.

25 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.

At 21 July Incoming Resources Transfers At 20 July
2024 resources expended 2025
£ £ £ £ £
Heritable Property 619,437 - (43,457) - 575,980
Motor Vehicles 4,054 - (1,311) - 2,743
623,491 - (44,768) - 578,723
Previous year: At21 July Incoming Resources Transfers At 20 July
2023 resources expended 2024
£ £ £ £ £
Heritable Property 662,895 - (43,458) - 619,437
MotorVehicles 5,692 - (1,638) - 4,054
Foundation Scotland - 12,053 - (12,053) -
668,587 12,053 (45,096) (12,053) 623,491

«(D4 «

'

ALEXANDER SCOTT'S HOSPITAL (EVENTIDE HOME)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 20 JULY 2025

25 Restricted funds

(Continued)

Restricted funds include the heritable property which, under Alexander Scott's Will, must be used as a hospital. In the event of a sale the proceeds should be used to purchase property for the ultimate benefit of the residents of Huntly. Expenditure represents deprecation charged on the property.

Restricted funds also include motor vehicles for which a grant of £22,500 was received from Foundation Scotland. Per the terms and conditions of this grant, this is required to be shown as restricted in the financial statements. The grant will be released in line with the annual depreciation charged on the motor vehicles.

26 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 21 July Incoming Resources Transfers Gains and At 20 July
2024 resources expended losses 2025
£ £ £ £ £ £
General funds 949,935 1,876,874 (2,172,641) - 30,220 684,388
Previous year: At21 July Incoming Resources Transfers Gains and At20 July
2023 resources expended losses 2024
£ £ £ £ £ £
Generalfunds 977,283 1,824,151 (1,906,376) 12,053 42,824 949,935

27 ~~ Analysis of net assets between funds

Unrestricted Restricted Total
funds funds
2025 2025 2025
£ £ £
At 20 July 2025:
Tangible assets 71,893 578,723 650,616
Investments 454,196 - 454,196
Current assets/(liabilities) 158,299 - 158,299
684,388 578,723 1,263,111

mi ee

’ ALEXANDER SCOTT'S HOSPITAL (EVENTIDE HOME)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 20 JULY 2025

27 ~=«~Anaiysis of net assets between funds

~=«~Anaiysis of net assetsassets between funds (Continued)
Unrestricted Restricted Total
funds funds
2024 2024 2024
£ £ £
At 20 July 2024:
Tangible assets 56,347 623,491 679,838
Investments 603,314 - 603,314
Current assets/(liabilities) 290,274 - 290,274
949,935 623,491 1,573,426

28 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:

2025 2024
£ £
Within one year 518 518
Between two and five years 1,296 1,814
1,814 2,332

The amount of non-cancellable operating lease payments recognised as an expense during the year was £518 (2024 - £217).

-23.-

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 20 JULY 2025

29 Related party transactions

Transactions with related parties

During the year the charity entered into the following transactions with related parties:

Murdoch, McMath & Mitchell

(A firm that provides key management personnel services (acting as Clerks and Tresurers to the charity)

During the year, Murdoch, McMath & Mitchell rendered key management personnel services to the charity totalling £3,900 (2024 - £38,400).

During the year, Murdoch, McMath & Mitchell donated key management personnel services to the charity valued at £38,400 (2024 - Enil).

James Rizza & Son Ltd

(A company in which Nora Morrison is a director and shareholder)

During the year, the charity purchased goods from James Rizza & Son Ltd totalling £262 (2024 - £10).

Elizabeth Christie

(Mother of Partner of Murdoch, McMath & Mitchell, a firm that provides key management personnel services to the charity)

During the year, Elizabeth Christie paid the charity £22,860 (2024 - £43,703), in relation to fees for staying at the Hospital.

30 =©Analysis of changes in net funds

The charity had no material debt during the year.

-24-

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 20 JULY 2025

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31 Cash absorbed by operations 2025 2024
£ £
Deficit forthe year (310,315) (72,444)
Adjustments for:
Investment income recognised in statement offinancial activities (23,771) (32,605)
(Gain)/loss on disposal oftangible fixed assets - 239
Gain on disposal ofinvestments (11,833) (2,146)
Fairvalue gains and losses on investments (18,387) (40,678)
Depreciation and impairment oftangible fixed assets 56,252 52,285
Movements in working capital:
Decrease/(increase) in stocks 3,165 (5,283)
(Increase) in debtors (33,563) (32,227)
Increase/(decrease) in creditors
(Decrease) in deferred income		 52,051
(3,525)		 (52,530)
(969)
Cashabsorbedbyoperations (289,926) (186,358)

= 25