Charity registration number: SC016809 The Kincarrathie Trust Annual Report and Financial Statements for the Year Ended 31 March 2025
The Kincarrathie Trust Contents Reference and Administrative Details Trustees, Report 2tolO Statement of Trustees, Responsibilities 11 Independent Auditors, ReFQrt 12to15 ststement of Financial Attivities 16to17 Balan Sheet 18 Cash Flow Statement 19 Notes to the Financial Ststements 20to39
The Kincarrathie Trust Reference and Administrative Details Trustees Senior Management Team Prfnclpal Offlce Kincarrathie House Pitcullen Crescent PERTH PH2 7HX Charlty RegistratSon Number SC016809 Investment Advlsors RBC Brewin Dolphin Sixth Floor Atria One 144 Morrison Street EDINBURGH EH3 8BR Audltors Morris & Young, Statutory Auditor Chartered Accountants 6 Atholl CreSnt PERTH PHI 5JN Sollcitors Messrs Mccash & Hunter PO Box 17 25 South Methven Street PERTh PHI SES Page I
The Kincarrathie Trust Trustees, Report The trustees present the annual repjrt together yth the financial statements of the charity for the year ended 31 March 2025. Summary The Care Settor continues to fa the ever-present challenges of sustainability due to continual underfunding of the Sector. This past year has a number of Care Home closures across the sector due to increased running expenses, higher Stsffing costs and the impact of high inflation. This gap between true cost of care and recoverable cost for Lcral Authority funded residents continues to present a significant long term organisational risk and presents a dilemma for the Trustees when comparing the gap tetwn income from Private residents and those funded by the L¢xal Authority. As has been the case with the rest of the Care Horre sector, these increasing financial pressures have had a significant impact on every asFect of the running of Kincarrathie House. With this in mind the Trustees have monitored closely the income and expenditure budgets as part of our ongoing governan of the organisation. The challenges that The Twst has had to navigate have included: Attempting to limit aLM)ve inflationary cost increases on private rcM)m rate fees wherever possible. The Scottish Government has further legislated on minimum wage rates for workers in the care sertor and at the same ts'me, it has failed to provide adequate inflationary rises to the room rates paid by the Local Authority for funded residents govemed by the Scottish National Care Home Contract, despite a higher than nomial increase in f rates. Fee rates have increased by a further 6.9% for the year ahead by the Scottish Government for our Council funded residents which will help to cushion the increase in room rates for the forthcoming year. The Trustees would like to record their thanks and appreciation to the staff, and management team, who strive ever day to make Kincarrathie a home from home for all the residents we care for. Page 2
The Kincarrathie Trust Trustees, Report Objectives and activities Objects and aims The Trust's objects are, very generally, instituting or supporting, or both, all manner of work which would in any way be incidental or conducive to the welfare of older people of limited means in and around Perth. To date, the Trustees have decided to concentrate solely on maintaining Kincarrathie House as a Care Home for older people to the highest stsndard possible. The Management and Stsff of Kincarrathie House are committed to ensuring that all residents of Kincarrathie House are treated with dignity and respEtt, whose rights as citizens are in no way diminished (except where the law so prescribes), and who are entitled to live as full and active lives as they desire. The aim of Kincarrathie House is to enable residents to achieve their potential in all aspects of daily life within a congenial and comfortable environment. It is the aim of the Trustees that residents should regard Kincarrathie House as home in every sense of the word. Page 3
The Kincarrathie Trust Trustees, Report Objectives strategies andactivities As an indication of performan, the Care Inspectorate system of grading provides a measure of perfomiance. The most recent unannounced visit from the Care Inspectorate took pla on the 12th February 2025 and was a following up inspection. The report highlights that b3th relatives and residents We highty complementsry ab)ut the management and staff. The inspection covered one of the quality indicators.. - l)"How well do we support Feople's wellbeing" We have received a grade of 4 (g). The Trustees recognise the progress reflected in this improvement and commend the dedication and teamwork demonstrated by all staff that makes Kincarrathie unique. While acknowledging that furtlEr prcgress is Possible the Management team will be working towards this goal over the next 12 months. To that end the Trustees will continue to strengthen our strategic planning/risk management process to tske account of the following:" a) the changing population needs b) staffing levels and training requirements c) increased use of information technology d) increasing financial pressures e) any other identifiable business risks Stsffing levels are assessed on a regular basis and we have increased the number of staff during the year to meet the higher dependenq levels of our idents, this is to ensure safe staffing at all times. A great deal of impM)rtance is attach&J to staff trainingi and staff have the opFortunity to achieve their SVQ qualifications following the completion of a successful probationary pericrfj. We have introduced a trainee F()sition to encourage those new to care as a chosen Carr. The performance of staff is regularly reviewed through a formal appraisal prosS, and we have made significant improvements to recruitment and retention by Incsing care workers pay at Kincarrathie House to a rate generou51y atx)ve market average. Page 4
The Kincarrathie Trust Trustees, Report Throughout the year there was significant investment in the ongoing programme of maintenance and improvements which included the redecoration of the West Wing hallwayi lower corridor off reception, the Home Manager and Care Offices, along with ten resident rooms décor and flooring upgrades. Legislative changes to water compliance Spend this year was £6.3k with the same expected next year to complete these upgrade works. Our three yearly Electric Inspection was completed along with the renewal of our Energy Performance Certification and associated Attion Plan. Great care is tsken to ensure the food is not only nutritious but appetizing. A varied diet is provided with fresh vegetables and soft fruit given a high priority with some of it grown in our own walled garden. Menus are varied with appropriate meals provided for special occasions. Due regard is paid to the likes and dislikes of residents, and to the specific dietary requirements of individuals. For the year to the end of March 2025 a wide variety of activities and entertainment was available for residents to maintain a healthy interest in the social aspects of life. Residents have enjoyed a number of activities including music, dance, theatre, guest speakers, talks, in-house exercise sessions, animal visits, and intergenerational events with the local nursery & school children. Participation in our popular Cheese & Wine and Beer & a Pint evenings have reached record levels and is a welcome sight. One of the highlights of the year is our annual garden party which was held in September. This provides an opportunity for SIdents/famIlY and friends to join the Trustees and staff for an afternoon of relaxation and entertainment. Open communication with residents and families of residents is something we value highly, and this IS encouraged in a variety of ways both formal and informal. We are very fortunate to have a strong Senior Management Team and Stsff, who are totally dedicated and committed to putting their skills and time into the running of the Home. Page 5
The Kincarrathie Trust Trustees. Report Financial review The Trust's totsl unrestrthd expendilMre excee&d income this year resulting in an unrestrirted fund deficit of £103,742 (2024 £95,744 SuruS). This figure refletts the increase in value of investments (see bebw) and the depreciation wh'cy adopted in respect of the lease of the property from The Ganncchy Trust. Setting aside the increase in the value of investments (£18,502) and the depreci2tion on lease value & discounted rent value (£47,610) income generated was exceeded by all routine expenditure by just over £74,000 this year. This r&lects a more difficult trading year where occupancy rates fell to 91.790/0 compared to 99.73 % last year. Included in inc¢Jne from donations and legaaes are funds r£reived from the Farquharson Bequest. This bequest, the mair urpose of whith is to provKle funds for The Kincarrathie Trust, was established by and requires to be administered by The Gannochy Trust. Funds are invested by Isio Investment servi Limited and income is generated from dividends and interest from the investments. The objective of the investment pJrtfolMJ is to maintain the 31 spending power of the capitsl whilst also generating a reasonable level of income for the Trust, It is predominantly invested in p(K)led funds and the target retum for the portfolio is UK CPI inflation Also induded in income is "investrnent income". This is income generated from the investments managed on behalf of the Trust by RBC Brewin Dolphin. The capital with RBC Brewin Dolphin is primarily the fund5 received from The Gannochy Trust as part of the sale & leaseback agreement (£1.6m) with the balance coming from excess cash held. As at 31st March 2025 the market value of the investment funds had increased by £7,001 (2024 - an increase of £138,478) which demonstrated a continuiThJ small recovery of global financial markets following a reduction in the continuing effects of the war in Ukraine, and a stabilisng of eneryy costs, albeit the cost of living crisis still carries on. Policy on reserves It is the pdicy of the Trust that unrestricted funds, which have not designated for a specffic use, should be maintained at a level to provide sufficient income to allow the Trust to pursue its objettives. Unrestricted funds at the yearend were £3,702,815 (2024 - £3,806,557). Despite the higher adjusted deficit suffered at the year end, the Trust has IEen able to continue to maintain its overall provisDn of care and has maintained its ability to mt future rnaIntenan expenditure. Pnnapal funding sources The main funding Sour of the Trust is that of Residents, B)ard incorne. This incorne enab the Trust to fulfil its objects and aims to operate a Care Home for older people to a high standard. Secondary sources of funds are two separate investment incomes from portfolios managed by RBC Brewin Dolphin and Isio Investrnent Services (see Financial review above). Page 6
The Kincarrathie Trust Trustees, Report Investmentpoliry and objectives The general investment p)wers of the Trust are governed by the Tru5Vs founding document. The Trust engaged RBC Brewin Dolphin as investment managers, on a discretionary management basis. The benchmark policy is to adopt a Risk Category 5 investment strategy based on obtsining a balanced return from income and capital. The market value of securities has improved this year as world-wide stock markets recovered to some extent as described above in the Financial Review. The overall gains on investment assets this year of £18,502 (2024 - £149,231 gains) comprise a realised gain on securities sold of £13,418 and an unrealised gain on securities of £5,084 (2024 £4,142 realised loss and £153,373 unrealised gain). Plans for future periods Ainjs and key objectives for future periods The Trustees, strategy for achieving the aims of the Trust is to continue to te sensitive to and to recognise the pjtential in each resident and in particular by understanding that their needs may change over a period of time. A key element linked to this is a continual pro3ramme of staff training. This is reinforced by monthly assessments of the needs and p)tential of each resident by the Manager in conjunction with the resident's Key Worker. Activities planned to achieve aims A continuing programme of maintenance of the building and grounds is in force to ensure that the propety, l)oth internal and external, is maintsined to a high standard. Page 7
The Kincarrathie Trust Trustees, Report Structurei governance and management Jvature ofgoverning docUnt The Trust was thblished by a Deed of Trust in 1961 by partEs who, at that tirne, were Trustees of The Ganncchy Trust, Pth whith was set up in 1937 by Arthur Klnmond eell, whisky distiiier, Perth who livej at Kin(arrathie House, Pwth. Oryani&7tional stnKtu The organisatK)nal structure of the Trust coffprises three Trustees (one of WrM is aprointed Chairperson for an indefinite perDd), all of whom are unpaid. The Trust5 who serrfed during the year and were apFointed by thar PeCess0rs were: Recmitment and appwntment of trustees Trustees rve until IgnatI.On, death or removal. NeV Trustees ae assumed by the rernaining Trust or Trustees, ensuring that not more than ttree Trustees act at any given time. Inductson and traininq of tmstees An infomiatiiM pack is provided to neN Trust which indudes copies of the founding 1961 fked of Trus( Minutes cf NeetiThJs of the Trustees for the previous year and the latest brochure for the Home contsining a Ststement of Purp)se, copies of recent Care Ir5torate InspectK)n Reports, current charges and servi$ and other relevant inforrnab'on. In addition, copies of the Trust's last three years, annual reports and accounts are made available, together with a copy of the offi of the Scottish Charty RegukHtor's (OSCR) publKation 'Guan and Gcod Practi for Charity Trustees" Trustee"away days" and trainin9 sesgons on specific subjects are arranged on a regular basis. Arrangements for setting key nMnagenientpern?nnel remuneration is the Fbrne ManaJer and is the Finan and Business Manager. have responsibilty for the day-ttrday administration of the operation of the Home in accordan with instrurt1(S prov1 by the Trustees, vtho have fomial meetings with them, on a qLkArterky basis. salaries of the Care Home Manager Finan & Business Manager are reviewed on an annual basis by the Trust5. Page 8
The Kincarrathie Trust Trustees, Report Financial instruments Objertives andpolia.es The Charity's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The Trustees have assessed the major risks to which the Trust is exposed and are satisfied that systems are in place to mitigate its exposure to major risks including arrangements to review the risks on a regular basis. In this connection, the Board consider and, whe, necessary amend, the Trust's Risk Matrix at every formal meeting of Trustees. Cash flow nsk The Trustees have retained adequate cash resources to meet the immediate requirements of the Trust. Credlt rfsk The Charity's principal financial assets are bank balances, residents, board income, and cash and other regulated investments on which, and as explained elsewhere in this Report, the Trustees receive appropriate professional advice. The Charity's credit risk is primarily attributable to its residents, board income. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experien, is evidence of a reduction in the recoverability of the cash flows. The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. The Charity has no significant concentration of credit risk, with exposure spread over a number of counterparties and customers. Liquidity rlsk In order to maintsin liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the Trust's liquid funds are kept in a combination of a non-interest-bearing and interest-bearing banklbuilding society accounts for seNicing the Trust's everyday financial needs. Disclosure of information to auditor Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any levant audit information and to establish that the charity's auditor is aware of that information. The trust*s confirm that there is no relevant information that they know of and of which they know the auditor is unaware. Page 9
The lQncarrnthSe Trust Trustees, Report The annual report was approved ty the trustees of d)arity on 12 AUgt 2025 and signed its behalf by: Page io
The Kincarrathie Trust ststement of Trustses, Responsibilities The trusts are responsible for preparing the Tru5tees' Annual Report and the financial Statements in accordance with the United Kingdom Accounting Stsndards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. The law applicable to charities 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 pericxl. In preparing these financial ststements,the trUStS are required to: select suitable accounting px)licies and then apply them consistently; observe the methods and principles in the Charities SORP; make judgements and estimates that are reasonable and prudent; state whether applicable accounting stsndards have bn followed, subject to any material departUS disclosed and explained in the financial ststements; and prepare the financial statements on the going conrn basis unless it is inappropriate to presume that the charity will conts'nue in business. The trust*s are responsible for k&ping proper accounting records that disclose with reasonable accuracy at any time the financial wsiti'on 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. The trustees are also resFK)nsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Page 11
The Kincarrathie Trust Independent Auditor's Report to the Members of The Kincarrathie Trust Opinion We have audited the financial statements of The Kincarrathie Trust (the 'charity') for the year ended 31 March 2025, which comprise the Statement of Financial Activities, Balance Sheet, Cash Flow Statement, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Stsndards, comprising Charities SORP (FRS 102) and The Financial Reporting Stsndard applicable in the UK and Republic of Ireland, (FRS 102) (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 31 March 2025 and of its results for the year then ended. have been properly prepared in accordan with United Kingdom Generally Accepted Accounting Prattl. and have been prepared in accordan with the requirements of the Charities and Trust Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended). 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 Auditorfs 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 tlieVe that the audit eviden we have obtsined is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going conrn In auditing the financial statements, we have concluded that the Trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material UnrtaIntieS relating to events or conditions that, individually or collertivelyi 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 reswnsibilities of the Trustees with respect to going conrn are described in the relevant sertions of this report. Other information The trustees are responsible ft)r the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements doe5 not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Page 12
The Kincarrathie Trust Independent Auditor's Report to the Members of The Kincarrathie Trust In connection with our audit of the financial statements, our reswnsibility 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 obtsined in the audit or otheNise appears to be materially misststed. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial ststements or a material misststement of the other infomiation. 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 repM)rt in this regard. Matters on which we are required to report by exception In the light of our knowledge and understanding of the charity and its environment obtsined in the course of the audit, we have not identified material misstatements in the Trustees, Report. We have nothing to report in respect of the following matters where the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion: adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or the financial statements are not in agrment with the accounting records and returns. or rtain disclosures of trustees remuneration specified by law are not made; or we have not received all the information and explanation5 we require for our audit. Responsibilities of trustees As explained more fully in the Ststement of Trustees, Responsibilities (set out on page 11), 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 detemine 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 conrn and using the going conrn basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are to obtsin reasonable assuran alx)ut 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 assuran is a high level of assuran, but is not a guarantee that an audit conducted in accordan 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 ststements. Extent to which the audit was considered capable of detecting irregularities, including fraud We identify and assess the risks of material misststement of the financial statements, whether due to fraud or error, and then design and perform audit prccedures responsive to those risks, including obtaining audit eviden that IS sufficient and appropriate to provide a basis for our opinion. Page 13
The Kincarrathie Trust Independent Auditor's Report to the Members of The Kincarrathie Trust Identifylng and assessing potential risks related to irregularitses Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our ponsibIlItieS, Outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our prcKedures are capable of detecting irregularities, including fraud is detailed below: the nature of the regulated sector, control environment arKI understsnding of the entity includingi but not restricted to, the understsnding that the trustees a rKJt remunerated, and the prevalence of fraud in the sector especially in the current unrtain ecorMiC environment. results of our enquiries of trustees aut their own identification and assessment of the risks of irregularities. any matters we identified having obtained and reviewed the Charity's dumentatIon of their policies and prcKedures relating to: identifying, evaluating and complying with laws and regulations and whether they We aware of any instsn of non-complian. detecting and responding to the risks of fraud and wPthr they have knowledge of any actual, suspected or alleged fraud; the internal controls estsblished to Mitigate risks of fraud or non-complian with laws and regulations; the matters discussed among the audlt engagement team regardlng how and where fraud might occur in the financial ststernents and any potential indicators of fraud. As a result of these pr(xedures, we consKlered the opry)rtunities that may exlst wlthln the organlsation for fraud and identified the greatest w)tential for fraud in relation to revenue recognition. In common wlth all audits under ISAS (UK), we a also required to perform specific proCedUS to respond to the risk of management override. We also obtained an understsnding of the legal and regulatory frameworks that the Charity operates In, focusing on provisions of those laws and regukitions that had a direct effect on the determination of materlal amounts and disclosu In the financial statements. The key laws and regulations we considered in this context included the charrtS own Deed of Trust, and various charity-specific legislation, including The Charities and Trustee Investment (ScotlarKI) Act 2005. Our procedures to respond to risks identified irKluded the following: reviewing the financial ststement disclosures and testing to supporting documentation to assess compliance with provisions of rele4ant laws and regulations described as having a direct effect on the financial ststements; enquiring of Trustees and legal advisors ConMIng actual and kntial litigation and claims; perfoming analytical pr£edU to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fra. reading minutes of meetirKJs of those charged with governan. proof in totsl of Residenys Board and investment income was conducted, and consideration given to revenue recognition accounting policies. Also revie4ved the minutes of meetings for completeness of income; Page 14
The Kincarrathie Trust Independent Auditorfs Report to the Members of The Kincarrathie Trust in addressing the risk of fraud through management override of controls, testing the appropriateness of joumal entries and other adjustsnents; assessirvj whetfrer the judgements made in making accounts'ng estimates are indicats've of a tents.31 bias. and evaluating the business rationale of any gnificant transactions that are unusual or outsKk the normal course of business. We also communicated relevant thntified laws and regulations and wtentlal fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations thr<yJghout the audit Due to the inherent limltations of an audiL re Is an urk7voidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly anned and performed our audit in accordance with auditing starKlards. For example, as with any audit, there remained a higher risk of noTrdetection of irregularities, as these may involve collusion, ft)rgery, intentional omissions, misrepresentsts'ons, or the override of internal controls. We are not responsible for preventin9 fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with lay and regulations. A further description of our responsibilities for the audit of the financial statements is located on the Flnanclal ReFM)rting Councll's website at wvhv.frc.org.uklauditorsresponsibilities. Thls descriptlon forms part of our auditor's report. Use of our report This pOrt is made solely to the charity trustees, as a bc#Jy, in accordan with section 44 (1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 10 of the Charities Accounts (Scouand) Regulatlons 2006 (as amended). work has been undertaken so that we mlght stste to trustees those matters we are required to stste to trustees in an auditors, report and for no other purpose. To the fullest extent pemitted by law, we do not acpt or assume resp)nsibility to anyone other than the charity and its trustees as a body, for our audit work, for this report, or for the opinions we have formed. Morrls & Young, Statutory Auditor Eligible to act as an auditor in terms of section 1212 of the Cc*npanies Att 2006 Chartered Accountants 6 Atholl Crescent PERTH PHI 5JN 26 September 2025 Page IS
The Kincarrathie Trust ststement of Financial Activities for the Year Ended 31 March 2025 Unrestricted Restricted funds funds Total 2025 Total 2024 Note Income and Endowments from: Donations and legacies Charitsble activities Investment income Other income 36,925 2,197,245 60,706 36,925 2,197,245 60,706 35,568 2,133,132 59,217 Total Income 2 340 148 2 271201 Expenditure on: Raising funds Charitsble activities (11,620) 2 450 772 (11,620) 2 452 203 (10,846) 2 319 333 Total Expenditure Gainsl(losses) on investment assets (2,462,392) (1,431) (2,463,823) (2,330,179) 149 231 Net (eXpendItu)I1ncOme 103 742 105 173 Net movement in funds (103,742) (1,431) (105,173) 90,253 Reconciliation of funds Total funds brought foNard Total funds carried forward 3 806 557 3 818 008 3 727 755 20 3 702 815 10 020 3 712 835 3 818 008 Page 16
The Kincarrathie Trust Ststement of Financial Artivities for the Year Ended 31 March 2025 Unrestrirted Restricted funds funds Total 2024 Note Income and Endowments from: Donations and legacies Charitable attivities Investrnent income Other income 35,568 2,133,132 59,217 35,568 2,133,132 59,217 Total income 2 271201 2 271201 Expenditure on: Raising funds Charitsble activities (10,846) 2,313 842 (10,846) 2,319 333 Total expenditure Gains/losses on investrnent assets (2,324,688) 149,231 (5,491) (2,330,179) 149,231 Net incomel(extEnditure) Net movement in funds 95,744 95,744 (5,491) 90,253 Reconciliation of funds Total funds brought foNard 3 710 813 3 727 755 Total funds carried forward 20 3 806 557 3 818 008 All of the charity's activities derive from continuing operations during the ab)ve two peric*Js. The funds breakdown for 2024 is shown in note 20. Page 17
The Icincarrathie Trust (Registration number: SC016809) Balance Sheet as at 31 March 2025 2025 2024 Note Flxed assets Tangible assets Investrnents 13 14 1,616,009 1920 259 1,703,728 1913 258 3 536 268 3 616 98fj Current assets Debtors Cash at bank and in hand 15 16 34,226 352 598 48,733 295 532 386,824 344,265 Credltors: Amounts falllng due wlthln one year 17 210 257 143 243 Net current assets 201022 Net assets 3 712 835 3 818 008 Funds of the chaiity: 10,020 11,451 Unrestricted income fvnds Llnrestricted funds 3 702 815 Total funds 20 3 712 835 3 818 008 The financial statements on pages 16 to 39 were approv by the trtees, and authorised for iss(E on 12 Aug 2025 and sgned on their trhalf ty: Page 18
The Kincarrathie Trust Cash Flow Statement for the Year Ended 31 March 2025 2025 2024 Note Cash flows from operating activities Net cash {expenditure)/income Adjustments to cash flows from non-cash items Depreciation Investment income Loss on diswsal of tsngible fExed assets Profit on revaluation of investrnents (105,173) 90,253 13 109,849 (60,706) 967 110,523 (59,217) 19,453 153 373 (60,147) 7,639 Working capital adjustments Decrease/(increase) in debtors Increase in creditors 15 17 14,507 (2,664) Net cash flows from operating activities Cash flows from investing activities Interest receivable and similar income Purchase of tangible fixed assets Purcha* of investments Sale of investrnents Income from dividends 6,001 (23,097) (401,664) 399,747 5,687 (72,910) (577,458) 592,353 13 14 Net cash flows from investing activities Net increase in cash and cash equivalents Cash and cash equivalents at l April Cash and cash equivalents at 31 March 57,066 18,026 295 532 277 506 352 598 295 532 All of the cash flows a derived from continuing operations during the above periods. Page 19
The Kincarrathie Trust Notes to the Financial Statements for the Year Ended 31 March 2025 l Accounting policies Basis of preparation The financial ststements have been prepared in accordance with Accounting and Rewrting by Charities: Statement of Recommended Prattl applicable to charities preparing their accounts in accordan with the Financial Rep3rting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective l January 2019) (Charities SORP {FRS 102)), the Financial Rep)rting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities and Trust Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). The Kincarrathie Trust meets the definition of a public tenefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. The financial statements are presented in sterling (£). Going concern Given the level of funds available the trust5 consider that there a no material uncertainties aLM)Ut the Trust's abilty to continue as a going conrn. Key sources of estimation uncertainty Valuation of interest in leasehold property (Note 13) - In the application of the Trust's accounting policies, the trustees are required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily available from other sourtrs. The estimates and underlying assumptions are based on historical experien and other factors that are considered to be relevant. Actual results may differ from the* estimates. One such estimation uncertainty is that of the value of interest in leasehold proFerty and 15 more fully detailed in Nots 13. The carrying amount is £1,142,633 (2024 - £1,190,242). Income and endowments Voluntary income including donations, gifts, legacies and grants is recognised when the Trust has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient lIability. Donations andlegacies t)onations, legacies and bequests are recognised on a receivable basis when reIpt is probable and the amount can be reliably measured. Investment income Investment income is reco3nised on a receivable basis. Charitable activities Income from charitable activities comprises Residents. PAJard income and is credited to the Ststement of Financial Activitie5 (SOFA) in the year in which is receivable. Page 20
The Kincarrathie Trust Notes to the Financial Statements for the Year Ended 31 March 2025 Expenditure All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have teen allc(ated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges all¢xated on the rtIOn of the asset's use. Other support costs are allocated based on the spread of staff costs. Raising funds Costs of generating funds are those costs incurred in managing investrnents. Charitable activities Charitable activities expenditure comprises those costs incurred by the Trust in the deltvery of its activities and services for its beneficiaries, namely Residential Care costs incurred in operating a Residential Care Home. It includes Ly)th costs that can be all¢xated directly to such activitie5 and those costs of an indirect nature necessary to supp)rt them. Support costs Support Costs include central functions and have bn allocated to attivity cost categories on a basis consistent with the use of SoUr, for example, alIcatIng property costs by fl¢)or areas, or per capita, staff costs by the time spent and other costs by their usage. Governance costs These include the costs attributable to the Charity's compliance with constitutional and statutory requirements, including audit, strategic management and Trustee's meetings and reimbursed expenses. Irrecoverable VAT Irrecoverable VAT is charged against the category of resour5 expended for which it was incurred. Taxation The Trust has been accepted as a charity for tax purposes and is not liable to CorFK)ration Tax. See Note 12 below. Tangible fixed assets Individual fixed assets costing £100 or MO are initially recorded at cost, less any subsequent accumulated depreciation and subwuent accumulated impairment losses. Page 21
The Kincarrathie Trust Notes to the Financial Ststements for the Year Ended 31 March 2025 No cost figures are available for some of the fixtures, fittings & equipment owned by the Trust. At 31 March 1993, values were placed on the by the Trustees and these values were incorporated in the Balance Sheet with the related credit shown as a Revaluation Reserve. Improvement expenditure since then has been capitalised at cost pri. The Trustees have adopted a policy of valuing leasehold interest in property. The leasehold interest in Kincarrathie House, The Walled Garden and Gardener's Cottage was professionally valued by Graham & Sibbald in May 2019 see Note 13 below. The Trustees consider this valuation to be appropriate to be used at 31 March 2025. Fixtures, fittings and equipment are stated at cost or valuation less depreciation. Depreciatlon and amortlsation Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows.. Asset class Depreciation method and rate 3.33 % straight line (over period of lease) 10 % straight line 10 % reducing balance Leasehold land and buildings Leasehold improvements Fixtures, fittings and equipment Flxed asset investments Fixed asset investments are included at market value at the balance sheet date. Such a policy gives rise to unrealised gains or losses which are disclosed in the Ststement of Financial Activities. Realised galns and losses on investments are calculated as the difference between sales protreds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financial Activities in the period of disposal. Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end. Trade debtors Trade debtors are amounts due from residents for the provision of accommodation at prevailing room rates. Cash and cash equivalents Cash and cash equivalents comprise cash on hand and call dewsits, and other short-term highly liquid investments that a readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. Page 22
The Kincarrathie Trust Notes to the Financial Statements for the Year Ended 31 March 2025 Trade creditors Trade creditors are obligations to pay for gocKls or seNices that have ten acquir1 in the ordinary course of business from suppliers. Trade creditors a reccMJnised at their settlement amount after allowing for any trade discounts due. Fund structure Unrestricted income fund5 are general funds that are available for use at the trustees, discretion in furtherance of the objectives of the Trust. Unrestr1rt fvnds indude a Revaluation Resenie as detailed in notes 13 & 20. Restritted funds are subject to srecific conditions by donors as to how they may used. The purpose and use of the restricted funds are set out in the notes to the accounts. Further details of each furKI are disclosed in notes 20 & 21. Hire purchase and finan leases Leases in which substsntially all the risks arKI rewards of ownership a retained by the lessor are classified as operating lease5. Rentals payab under operating leases are charged in the Statement of Financial Activities on a straight line basis over the lease term. Pensions and other post retirement obligations The Charity operates a defined contribution pEnsion scheme which is a pension plan under which fixed contributions are paid into a tEn5ion fund ar the Charity has no legal or constructive obligation to pay further contributions even if the fund does not hold suffiaent assets to pay all employees the benefits relating to employ Servi in the current and prior perithds. Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed contribution due for serrf1, the excess is recognised as a prepayment - see Note 19. Page 23
The Kincarrathie Trust Notes to the Financial Statements for the Year Ended 31 March 2025 2 Income from donations and legaaes funds General Total 2025 Total 2024 Donations and legacies," Donations from individuals W G Farquharson bequest 1,231 1,231 3 Income from charitable activities funds General Total 2025 Total 2024 Residential care 2 197 245 2 197 245 2 133 132 Residential care income comprises Residents, Board income. 4 Investment income funds General Total 2025 Total 2024 Income from dividends; Dividends receivable from other listed investments Interest receivable and similar income; Interest receivable on bank deposits 54,705 54,705 53,530 Page 24
The Kincarrathie Trust Notes to the Financial Statements for the Year Ended 31 March 2025 5 Other income Total 2025 Totsl 2024 General Other income Other income comprises grounds rnaintenan income of £8,872 (2024 - £8,284) and Housing Support Service income of £36,4CrfJ (2024 - £35,(xx)). 6 Expenditure on raising funds a) Investment management costs Unrestrlcted funds General Total 2025 Totsl 2024 Note Other investment management costs; Investment portfolio management costs 7 Expenditure on charitable activities funds General Total 2025 Total 2024 funds Residential ca 2 435 CK17 2 436 438 2 301307 Page 25
The Kincarrathie Trust Notes to the Financial Statements for the Year Ended 31 March 2025 Residential care Total 2025 Total 2024 Direct Costs Employment costs Rent Water rates Light, heat and power Insurance Provisions costs 1,780,642 55,915 5,934 110,548 24,445 109,833 4,330 119,121 13,740 53,799 11,991 7,584 46,420 35,142 25,024 1,780,642 55,915 5,934 110,548 24,445 109,833 4,330 119,121 13,740 53,799 11,991 7,584 46,420 35,142 25,024 1,664,085 55,080 5,250 92,525 25,002 100,025 Repairs and renewals Gardening costs Cleaning & laundry Entertainment & outings Care Inspectorate registration f Depreciation of long leasehold interest in property Depreciation of tenant's improvements Depreciation of fixtures, fittings and equipment (Profit)Iloss on sale of tsngible fixed assets held for charity's own use 114,893 15,363 55,989 10,139 7,415 46,420 32,918 27,850 943 943 2,405,411 2,405,411 2,271,921 Support Costs - per Note 8 30,787 30,787 24,511 Governance Support Costs - per Note 8 (1,191) (1,191) (616) Governan Costs - per Note 8 2 450 772 2 450 772 2 313 842 Page 26
The Kincarrathie Trust Notes to the Financial Statements for the Year Ended 31 March 2025 8 Analysis of governance and support costs Charitable activities expenditure funds Total 2025 Total 2024 General Support Costs Telephone & fax Printing, pjstage & ststionery Subscription5 Donations & sp)nsorship Equipment hire Residents, gifts Sundry expenses Costs of Trustees, meetings Travel & subsisten Advertising Licensing & reports Legal & professional fees Bank charges 8,347 2,289 601 860 4,022 1,140 1,689 339 206 2,257 iio 8,509 418 8,347 2,289 601 860 4,022 1,140 1,689 339 206 2,257 iio 8,509 418 4,115 1,863 568 64 3,863 1,260 2,004 317 224 4,355 110 5,043 725 Page 27
The Kincarrathie Trust Notes to the Financial Statements for the Year Ended 31 March 2025 Basis of allocation Reference Method of allocation Telephone & fax usage Printing, postsge & stationery Subscriptions t)onations & sponsorship Equipment hire usage Residents, gifts usage Sundry expenses usage Cost of Trustees. meetings Travel & subsistence Advertising usage Licensing & reportsusage Legal & professional fees Bank charges usage usage usage usage usage usage usage Governance costs Unrestricted funds General Total 2025 Total 2024 Stsff costs Wages and salaries Social security costs Pension costs Audit f*s Audit of the financial statements Other fees paid to auditors Depreciation, amortisation and other similar costs Allocated support Costs 3,569 398 501 3,569 398 501 3,623 405 732 3,960 4,290 1,856 6,174 4,086 2,390 616 4,290 1,856 1,191 15,765 Page 28
The Kincarrathie Trust Notes to the Financial Statements for the Year Ended 31 March 2025 9 Net incomingloutgoing resour Net {incoming)loutgoing resour for the year include: 2025 2024 Operating leases - plant and machinery Operating leases - other assets Audit fees Other non-audit seNices Loss on diskKJsal of fixed assets held for the charity'5 own use Depreciation of fixed assets 4,021 55,915 3,960 4,290 967 109,849 3,863 55,080 6,174 4,086 19,453 110 523 IOTrustees remuneration and expenses No trustees, nor any persons connected with them, have received any remuneration from the charity during the year. No trustees have reIVed any reimbursed expenses or any other benefits from the charity during the year. During the year £2,211 was paid for Trust*s' Indemnity Insuran cover (2024 - £1,769). Ilstaff costs The aggregate payroll costs were as follows: 2025 2024 Staff costs during the year were: Wages and salaries Social security costs Pension and other schemes Other staff costs 1,518,071 122,504 136,310 8,225 1,414,067 109,528 130,712 1785 110 1672 905 Wages and salarie5 includes Agency costs of £24,992 (2024 - £37,033). Page 29
The Kincarrathie Trust Notes to the Financial Statements for the Year Ended 31 March 2025 The monthty average number of persons (indudtng senior management team) employed by the charity during the year expressed as full time equivalents was a5 follows: 2025 No 2024 No Administration Carers Domestics Kitchen Property 43 12 38 12 59 54 (2024 - 53) of the above empYS participated in the Defined Contribution Pension Schemes. Contributions to the employee pension schemes for the year total £136,310 (2024 - £130,712). See also Note 19. No employee received emoluments of more than £60,0(K) during the year. The total employee benefts of the kw management Irsonnel of the charty vRre £125,063 (2024 - £133,506). 12Taxation No tsx was charged in the year (2024 - £nil). The Trust has been accepted as a charity for tsx pur)se$. Relief from tax is therefore due under Section 505 of the Income and CorporatM)n Taxes Act 1988 under Scottish Charity Number SC016809, Tax File Referen sr02835. Page 30
The Kincarrathie Trust Notes to the Financial Statements for the Year Ended 31 March 2025 13Tangible fixed assets Fixtures, fittings and equipment Land and buildings Total Cost At l April 2024 Additions Disposals Transfers 1,771,791 7,367 742,928 2,514,719 15,730 23,097 (7,682) (7,682) 14,878 At 31 March 2025 1794 036 736 098 2 530 134 Depreciatlon At l April 2024 Charge for the year Eliminated on disposals 325,127 84,183 485,864 25,666 810,991 109,849 At 31 March 2025 914 125 Net book value At 31 March 2025 1384 726 231 283 1616 009 At 31 March 2024 146664 257 064 1703 728 Included within the net took value of land and buildings atx)ve is £Nil (2024 - £Nil) in respect of freehold land and buildings and £1,384,726 (2024 - £1,446,664) in respect of short leaseholds. The above assets are used for direct charitable purFM)ses. Page 31
The Kincarrathie Trust Notes to the Financial Statements for the Year Ended 31 March 2025 Revaluation No cost figures are available for some of the fixtures, fittings and equipment owned by the Trust. At 31 March 1993, values were placed on these by the Trustees and these values were incorporated in the Balan Sht with the related credit shown a5 a Revaluation ReseNe. Improvement expenditure Sin then has teen capitalised at cost pri. The land & buildings were sold to The Ganncrhy Trust in t)ecember 2019 and Kincarrathie House, The Walled Garden and Gardenerfs Cottage were then leased back from The GanncKhy Trust. The fair value of the Trust's land and buildings was valued on 13 May 2019 by Graham & Sibbald, Chartered Surveyors & Property Consultsnts, an independent valuer. The valuation of the leaseholder interest was carried out in accordance with the Royal Institution of Chartered Surveyors Valuation Global Standards 2017 on the basis of Market Value at £468,750. Rent payable under the lease is discounted and the net present value of this discounted rent is calculated to be £959,542. Both of these values were incorporated in the Balance Sheet with the related credit shown as an increase in the ReVaItIOn Reserve as at 31 March 2020. The combined value of £1,428,292 is being depreriated on a straight line basis over the 30 year duration of the lease. Lease-holder improvements to the propety Sin the commencement of the lease have been included at cost less depreciation. These are also included within Land and buildings, but are depreciated on a 10 year straight line basis. Assets held under operating leases The net carrying amount of tangible assets includes the following amounts in respett of assets held under operating leases: 2025 2024 Land & buildings - leasehold interest Land & buildings - discounted rent Leasehold improvements 375,000 767,633 273 288 1,415,921 390,625 799,617 256 422 1,446,664 Page 32
The Kincarrathie Trust Notes to the Financial Statements for the Year Ended 31 March 2025 14 Fixed asset investments 2025 2024 other investments 1920 259 1913 258 Other Investments Listed investments Cash deposits Total Cost or Valuation At l April 2024 Revaluation Additions Disposals 1,890,515 5,084 401,664 385 268 22,743 1,913,258 5,084 401,664 399 747 At 31 March 2025 1911995 8 264 1920 259 Net book value At 31 March 2025 1911995 8 264 1920 259 At 31 March 2024 1890 515 22 743 1913 258 15 Debtors 2025 2024 Trade debtors Prepayments Other debtors 4,206 18,852 16,998 17,397 Page 33
The Kincarrathie Trust Notes to the Financial Statements for the Year Ended 31 March 2025 16Cash and cash equivalents 2025 2024 Cash on hand Cash at bank Short-term deposits 527 112,031 291 29,499 265 742 352 598 295 532 17Creditors: amounts falling due within one year 2025 2024 Trade creditors Other taxation and social security other creditors Accruals 48,575 28,101 121,601 61,525 29,422 41,995 10,301 210 257 143 243 18 Obligations under leases and hire purchase contracts Operating lease commitments Total futu minimum lease payments under non-CanlIable operating leases are as follows: 2025 2024 Land and buildings Within one year Between one and five years Over five years 57,834 231,336 1139 812 55,080 220,320 1140,615 1428 982 1416 015 Other Within one year Betw&n one and five years 3,528 3,528 Page 34
The Kincarrathie Trust Notes to the Financial Statements for the Year Ended 31 March 2025 19 Pension and other schemes Defined contribution pension scheme The Trust operates a defined contribution pension scheme. The pension cost charge for the year partly represents contributions payable by the Trust to the scheme and amounted to £123,196 {2024 £119,957). In addition, the Trust also operates a Group Life Assurance Scheme providing Death in Servi insurance for employees. The c05t this year amounted to £13,114 (2024 - £10,755). Page 35
The Kincarrathie Trust Notes to the Financial Statements for the Year Ended 31 March 2025 20 Funds Balance at l April 2024 Other Balance at Incoming Resour recognised 31 March resources expended gains/(losses) 2025 Unrestricted funds General Revaluation reserve Unrestritted income funds 1,639,356 2 167 201 2 340 148 5,084 1,644,440 2 058 375 2 462 392 3,806,557 2,340,148 (2,462,392) 18,502 3,702,815 Restrirted funds Diamond Jubilee Garden Fund Total funds 3 818 008 2 340 148 2 463 823 3 712 835 Balance at l April 2023 Other Balance at Incoming Resources recognised 31 March resour expended gainsl(losses) 2024 Unrestricted funds General Revaluation reserve Unrestricted income funds 1,485,983 2224830 2271201 153,373 1,639,356 2 167 201 2 324 688 3 710 813 2 271201 2 324 688 149 231 3 806 557 Restricted funds Diamond Jubilee Garden Fund Workforce Wellbeing Fund for Social Care 12,882 (1,431) 11,451 Totsl restricted funds Total funds 3 727 755 2 271201 2 330 179 149 231 3 818 008 Page 36
The Kincarrathie Trust Notes to the Financial Statements for the Year Ended 31 March 2025 The specific purwses for which the funds are to be applied are as follows: The funds of the Trust include the following Restricted Fund: The Diamond Jubilee Garden Fund comprises donations received towards costs incurred in developing The Walled Garden in recognition of the Trust's 60th Anniversary in 2021. The donations were used to provide additional areas for seating and shelter within the garden, the cost of which was capitalised and is being depreciated over a 10 year period. The Workforce Wellbeing Fund for Social Care was estsblIsh in the year ended 31 March 2023 following receipt of a grant from the Scottish Government to improve staff wellbeing in the Social Care sector. The Fund was expended in full during the year ended 31 March 2024 on a Residents & Stsff SFQrts Day & Barteque and also on Stsff Team Building events at Willowgate Activity Centre. Page 37
The Kincarrathie Trust Notes to the Financial Statements for the Year Ended 31 March 2025 21 Analysis of net assets between funds funds General Restricted funds Total funds 2025 Tangible fixed assets Fixed asset investments Current assets Current liabilities 1,605,989 1,920,259 386,824 210,257 10,020 1,616,009 1,920,259 386,824 210 257 Totsl net assets 3 702 815 10,020 3 712 835 funds General Restricted funds Total funds 2024 Tangible fixed assets Fixed asset investments Current assets Current liabilities 1,692,277 1,913,258 344,265 143 243 11,451 1,703,728 1,913,258 344,265 143 243 Total net assets 3 806 557 3 818 008 22Analysis of net funds At l April 2024 Financing cash flows At 31 March 2025 Cash at bank and in hand 295,532 57,066 352 598 Net funds 295 532 352 598 At l April 2023 Financing cash flows At 31 March 2024 Cash at bank and in hand 295 532 Net funds 277 506 295 532 Page 38
The Kincarrathie Trust Notes to the Financial Statements for the Year Ended 31 March 2025 23 Related party transactions The Charity is cOntrold by the Trustees. During the year, a relative of one of the trustees was a resident at Kincarrathie House operated by the Trust. The resident paid fees in line wth the standard rates charged to all residents. The trustee was not involved in any decisions relating to the care, fees, or admission of the relative, and the arrangement was conducted on an arm's length basis. The trustees are satisfied that this relationship did not Influen the operations or governan of the Twst. Page 39