Charity Yegistration number SC019969 Iscotlandl ROSSIE SECURE ACCOMMODATION SERVICES ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 ROSSIE SECURE ACCOMMODATION SERVICES LEGAL AND ADMINISTRATIVE INFORMATION Trustee Rossie Young People's Trust Govemors Senior m•nagèméntt•am Charily number (Sootland) SC019969 Principal addro$$ Rossie by Montrose AngLbS DD10 9TW Auditor Murray Taylor Audit Lmmited 10 Murray Lane Montrose Angus DD10 8LF Bankors Virqin Money 718 High Street Dundee DD1 1SS Solicitors Thornlons Law LLP Whllehall House 33 Yeaman Shore DL￿dee DD14BJ ROSSIE SECURE ACCOMMODATION SERVICES CONTENTS Page Trustee report ststement of trustee responsibilities Independent auditor's report Statement of financial activities 10 Statement of financial position 11 Statement of cash flows 12 Notes to the financial statements ROSSIE SECURE ACCOMMODATION SERVICES TRUSTEE REPORT FOR THE YEAR ENDED 31 MARCH 2025 The trustee presents its annual report and financial statements for the year ended 31 March 2025. The financial statements have been prepared in accordance with the accounting policies sel out in note 1 to the financial statements and comply with the charity's Trust Deed, the Charitie5 and Trustee Investment Iscollandl Act 2005, the Charities Accounts (Scotlandl Regulations 2006 las 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 Ihe UK and Republic of Ireland IFRS 1021" (effective 1 January 20191. Obleetives and activities Vision Create a Centre of Excellence that changes lives. Mission Our mission is lo protect and improve the wellbeing of young people in our care, maximising their potential and resilience, enabling their transition back to their communities. This is achieved through the provision of individualised high quality care, education, health and Iherapeulic interventions. SeNices are delivered in a safe environment by a highly qualified compelenl workforce in partnership wilh families, carers and other key stakeholders. Our Values Our values are respect, integrity, delivery, accounlabilily and collaboration. We understand, nurture and valiie diversity. We use our direct practice experience to influence public and government opinion and policy. We are open and honest in all our deaSings, maintaining the highest level of truthfulness at all times. We deliver all our legal, rogulatory and contractual obligations through innovative responsive services, while measuring and evidencing our impact. We hold ourselves and others to account. We achieve more and better together through listening, learning and collaborating with each other. Strategies for aGhieving aims and objectives The Charity has a Strategic Plan agreed by the Board. Performance in achieving strategic objectives supporting the SlidleyiL Piiui ili¥b s¥1 vul iii Ilie Pldll ib i eguldl-ly i gyui leii lu Il'i¥ Bijai'd. Fii)aiityial sustaiiiaL)ility is a ci'UGial pi-ioi-ity, as without that the charity'5 future is not assured. The principal source of funding is frorn local authorities who refer young people and take up places offered. Scotland's public procurement agency decides what can be charged per bed per night. Rossie invoices local authorities for each younq person's placement and there have been no material changes in this model. The Scottish Government also provides funding for a number of secure placements. The maximum capacity is currently 22 secure beds, 6 close support beds and 8 residential care beds. We are a results driven organisation and our commitment to being an ettective, efticient, economically viable and suslainable organisalion ensures any surplus income generated is reinvested in the charity to improve and enhance our seNices. Ptjblic benefit The trustee has paid due regard to guidance issued by OSCR and the Charity Commission in deciding what activities the charity should undertake. ROSSIE SECURE ACCOMMODATION SERVICES TRUSTEE REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Achievements and performance Significant activities arjd achievements against objectives Rossie provides care, education. health and specialist interventions lo young people aged 10 - 18 years. We are licensed by Scottish Ministers and regulated by the Care and Education inspectorates, and the Scottish Social Services Council ISSSC). Our board sets Rossie's strategic direction and we have recruited 5 new Governors over last two years with diverse and relevant expertise to develop and strengthen the organisalion. Vve achieve our aims and objectives through the CEO, SLMT and a highly skilled and stable workforce. Strong governance is in place and progress and achievements against objectives are reportedlappraised at Board Meetings. In January 2025 Rossie Secure Accommodation services were awarded a grading of '6, for Leadership and Management making Rossie 'Se¢tor Leaders, in the field. Statements frorn the Inspeclorale included 'Courageous' and 'lnnovalive' to describe the culture of leadership across the organisalion. Staff deliver services within nationally set and agreed standards, frameworks and curricula. The Scollish Qualifications Authority ISQAI has awarded out Training Assessmenl Centre accreditation status to deliver vocational qualificalions levels 3 and 4. Our services are delivered through highly qualified multi-disciplinary staff groups and we are strongly cornmitted to investment in staff development and succession planning. We have a niodern health suite to carry out initial screening and on-going medicallnursing management of physical and nienlal needs of young people. Visits by GPS, dental staff and opticians are scheduled as required. Our success is independently assessed by both the Independent Care and Education inspectorates. We also evaluate ourselves against our occupancy levels and repeal business from local authorities. We deliver the Curriculum for Excellence with young people attaining nationally recognised qualifications, which improve their future opportunities. We are a results driven organisation and our commitment to being an effective, efficient, economically viable and sustainable organisation ensures any and all income generated is reinvested back into the organisation lo improve and enhance our services. Given the age of our building the Board is making significant investment in improving the environment and upgrading the IT infraslructure l architecture. The upgrades include a new staff protection and communication system {ASCOMI which constantly records the precise location of each user, and enhances the safely of young people,. the installation of new windows in our secure care service which will enable natural ventilation and a more trauma informed environment., the development of the skills academy will augmenl our curricular offer, and the repurposing of our secure garage will enhance and expand the trauma designed space for the very vulnerable and complex young people. Further investment in furniture and sensory rooms is planned. We have worked very closely with the Scottish Government to prepare for all the changes in the Children (Care and Justice) (Scollandl Act 2024 which ends imprisonment of children in Scotland. This led to a 3-year contract to repurpose Annan House to ensure that there are no c8pacity issues in secure care as the Act takes effect. Annan is now an additional 4 bedded secure house. The cost of this was supported by the SG with a 3-year contract awarded. Rossie continLJe negotiations with the Scottish Government lo further increase the national capacity through the repurposing of Esk House. We are corTrtribulors to the redress scheme which is part of the national endeavour lo right the harms of the past for care experienced people. In early 2025 the Chair and CEO gave evidence at the Scollish Child Abuse Inquiry. ROSSIE SECURE ACCOMMODATION SERVICES TRUSTEE REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 We are delivering the ambitions of The Promise - a strategic priority, with a particular focus on developing services to improve relationships between siblings. Rossie actively engaged in The Promise themes of building relationships with siblings via the Corra Foundation-supported 8rotherslSisters Project which made good progress with a new build facility due to be completed before the end of 2025. Progress was made on restraint reduction agenda with Rossie being recognised as sector leader in this area. We delivered the Curriculum for Excellence with young people attaining nationally recognised qualifications, lo improve their future opportunities. The development of a Skills Academy, addressing among other matters the needs of young people aged 16 but under 18 who would previously have been placed in Polmonl YOI will augment our curricular offer, and will be taken forward in 2025-26. As a result of improvements in Education, Rossie is no longer within the 'lnspection Cycle, and has been commended for developments. Rossie is an excellent employer arid has high staff retention rates. We are a significant local employer and our service contracts with trades of various kinds enable us to support business sustainability at local level. Our local profile and partnerships are very important to us, and we remain committed to developing and strengthening these with all key stakeholders. There are significant changes taking place in the national policy landsGape and legislative areiia. Rossie is actively engaged in all developments and is well positioned to deliver on all required changes. We remain strongly Committed lo achieving our Vision of being a "Centre of Excellence that Changes Lives.. Financial review The Statement of Financial Activities shows that Rossie Secure Accommodation Service has generated a deficit of of £80,573. The deficit from operational activities amounted lo £452,281. While income remained fairly static, wage costs have increased significantly. The restricted tturplua of £371,708 is monies received, for capital expenditure and renovation works, which will lake place in the financial year to 31 March 2026. The Slatp.mp.nt alqn 8hows a larger, accounting, surplus which is due lo the actuarial gain on the revaluation of the defined pension scheme of £4,428,545, renecling cl relui11 oli assets wliicli exceeded previous estimates. The nature of the regular actuarial valuation means that the surplus or deficit can vary subslanlially year on year depending on the assumptions used at the time of preparing this report. At 31 March 2025, the level of unrestricted reseNes was £30.418.440 12024- £26,442,176). See page 9 of the accounts lo %ep. Ihp qplit of the unreslricled reserves. Within Ihis total is the pension reserve of £15,295,719 which given the volatility of world markets may return to liability in the near future. Resewes policy The charity has considered the reserves required and have taken into account their current and future liabilities. The policy on cash reserves is lo try and maintain approximately 4 months of cash reserves. Prlnclpal fundlng sources The principal sources of funds for Rossie Secure Accommodation Services is Ihat Ihe charily invoices local authorities for each young person's placement and there have been no material changes in this policy. Investment policy The charity owns a number of rental cottages, situated on the land owned by the charity, which it rents out to third party individuals. The investment policy is to ensure that the cottages are always fully occupied and generating a market valLÈe rent. ROSSIE SECURE ACCOMMODATION SERVICES TRUSTEE REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Major risks The trustee has a duly to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. Rossie has a Risk Register which is reviewed twice a year or more frequently as required. The Board considers the major risks which the charity faces and believes that the current pricing and cost structure which are in place, combined with oversight of the controls over key financial systems, enable Rossie to respond lo any adverse conditions. In reviewing the Risk Register the board assures Itself that systems are in place to mitigate significant financial, operational and business risks. Structure, governance and management Rossie Secure Accommodation Services is constituted by the Trust Deed. The members of the trustee who served during the year and up to the date of signature of the financial statements were.. Rossie Young People's Trust Recruitment and appointment of Irustees Appointment of trustees is govemed by Ihe Trust Deed. Organisational structure Stewardship of the charity is the responsibility of the Board of Governors as elected by the Directors of Rossie Young Peoples, Trust. The Governors hold 8 main Board meetings per annum, and 8 meetings of each of two sub- Committees to oversee the running and financial affairs of the charity. There is also a less formal reflective Board meeting in October with a bespoke agenda. The day to day running of the charity is carried out by the CEO and the senior leadership and management team who report directly to the Board. The Board sets Rossie's strategic direction, monitors performance, and holds the CEO and senior managers to account. Ils composition has changed considerably in the past two years, with the appointment of new Governors with diverse and relevant expertise to develop and strengthen the organisalion. New Governors receive induction and development opportunities can be accessed if required. Performance against objectives is regularly reportedl appraised at Board and sub-committee meetings. Induction and training of trustees Where Governors require training for their particular post. such training is provided by the current board of Governors. Relationship with related parties Rossie Young People's Trust is the main trustee of Rossie Secure Accommodation Services. The directors of Rossie Young People's Trust are the individuals identified above as the Governors of Rossie Secure Accommodation. ROSSIE SECURE ACCOMMODATION SERVICES TRUSTEE REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARGH 2025 Dlsclosure of Informatlon to auditor The trustee has confirmed that there is no information of which the tne Iruslee is aware which is relevant lo Ihe audit, bul of which the auditor is unaware. The Iruslee has further confirmed that the trustee h8S taken appropriale steps lo ideiilify suGh relevanl infornialio4 and lo establish that the audilor is aware of Such information. 3tee. 10 September 2025 ROSSIE SECURE ACCOMMODATION SERVICES STATEMENT OF TRUSTEE RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2025 The trustee is responsible for preparirlg the Trustee Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Praclicel. The law applicable lo charities in Scotland requires Ihe trustee lo prepare financial statements for each financial year which give a true and fair view of the slate of affairs of the charity and of the incoming resources and application of reSoUr￿S of the charity for that year. In preparing these financial statements, the Iruslee is required to.. se5ect suitable accounting po5icies and then apply them consistently; observe the methods and principles in the Charities SORP., make judgements and estimates that are reasonable and prudenl., slate whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements., and prepare the financial statemenls on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The tru51ee is responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable it to ensure that the financial statements comply with the Charities and Trustee Investment (Scotlandl Act 2005, the Charities Accounts (Scotlandl Regulations 2006 and the provisions of the trust deed. It is 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. ROSSIE SECURE ACCOMMODATION SERVICES INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF ROSSIE SECURE ACCOMMODATION SERVICES Opinlon We have audited the financial statements of Rossie Secure Accommodation Services (the 'charily'l for the year ended 31 March 2025 which comprise the statement of financial aclivilies, the statement of financial position, the ststement of cash flows and notes lo 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 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 stste of the charity's affairs as at 31 March 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 and Trustee Investment (Scotlandl Act 2005 and regulation 8 of the Charities Accounls (Scotlandl Regulations 2006. Basis for opinion We conducted our audit in accordance with International Standards or) Auditing (UK) IISAS {UK}} and applicable law. Our responsibilities under those standards are further described in the Auditors responsibilities for the audil of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant lo 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 lo provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustee use of the going concern basis of