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2025-03-31-accounts

Charity number: SC044032 Registered number: CS001154

INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO) (KNOWN AS RIVER GARDEN AUCHINCRUIVE)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO)

CONTENTS

Page
Reference and administrative details of the charity, its Trustees and advisers 1
Trustees' report 2 - 6
Trustees' responsibilities statement 7
Independent auditor's report to the members of Independence From Drugs And 8 - 11
Alcohol Scotland
Statement of financial activities 12
Balance sheet 13
Statement of cash flows 14
Notes to the financial statements 15 - 30

INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2025

Trustees

Charity registered
number SC044032
SCIO registered
number CS001154
Principal office
Independent auditors AAB Audit & Accountancy Limited
133 Finneston Street
Glasgow
G3 8HB
Bankers The Co-operative Bank
1 Balloon Street
Manchester
M4 4BE
The Royal Bank of Scotland
36 St Andrew Square
Edinburgh
EH2 2YB
Solicitors CMS Glasgow
1 West Regent Street
Glasgow
G2 1AP

Page 1

INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2025

The Trustees present their annual report together with the audited financial statements of the charity for the year 1 April 2024 to 31 March 2025. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Objectives and activities

a. Policies and objectives

Independence from Drugs and Alcohol Scotland (IFDAS) was registered as a charity in Scotland in May 2013. Its mission is to develop a unique residential community to support individuals in the early stages of recovery from drug and alcohol substance dependency. The charity purchased a beautiful 48.5-acre site on the banks of the River Ayr in South Ayrshire, including land, buildings, and a historic Walled Garden, in November 2017. River Garden Auchincruive (RGA) was formally established in March 2018.

RGA offers individuals the opportunity to overcome substance dependency, rebuild their lives, and reintegrate into society as productive, healthy, and accomplished individuals through a work-integrated community model. Inspired by global success stories like San Patrignano (Italy) and Basta (Sweden), RGA has tailored its model to fit its unique context, with residents playing a vital role in its development.

The programme operates on two core pillars:

Through this model, residents acquire confidence, skills, and a renewed sense of purpose, with support from staff and recovery development workers, many of whom have lived experience of substance dependency. Social enterprises provide opportunities to gain work-related skills and generate income for the charity. Additionally, the organisation demonstrates a strong commitment to education for residents whilst prioritising the ongoing development of its staff and trustees, fostering growth and sustainability within the community.

RGA's mission is increasingly urgent in the face of Scotland's escalating drug and alcohol death rates, the highest in Europe. In 2023, the National Records of Scotland reported 1,172 drug-related deaths - a devastating 12% increase from the prior year.

In line with the Scottish Government’s 2021 National Mission to reduce drug deaths, RGA plays a vital role in offering effective, community-based recovery solutions.

b. Strategies for achieving objectives

The charity’s objectives include:

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INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO)

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

Objectives and activities (continued)

c. Activities undertaken to achieve objectives

RGA achieves its objectives through:

Achievements and performance

a. Review of activities

Capital Build Update

This year, we substantially completed Phase 1 of our capital project, which has expanded our capacity to 24 beds, subject to some remedial and road works. However, we are still in ongoing discussions with the Scottish Government regarding a sustainable funding model that will enable us to increase staffing levels to appropriately support 24 residents. We remain optimistic that these discussions will be concluded imminently, allowing us to fully utilise the new capacity and offer the essential support to individuals in Scotland who are seeking recovery from substance dependency.

Financial Challenges

Due to the continued uncertainty around the ongoing operating funding from Scottish Government, we must continue to submit the accounts on an “Other than Going Concern” basis, reflecting the precarious financial position of IFDAS.

Operational Highlights

Despite financial uncertainties, the senior leadership team, has maintained a safe and therapeutic environment for residents. The team has also overseen heritage garden stewardship, social enterprise development, and volunteer coordination amidst active construction work.

Key achievements include :

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INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO)

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

Achievements and performance (continued)

b. Acknowledgements

We extend heartfelt thanks to:

Despite challenges, our commitment to delivering a safe, transformative recovery journey remains steadfast.

Financial review

a. Going concern

The financial statements are prepared on a basis other than going concern. At the balance sheet date, total unrestricted funds totalled £(149,620), of which £370,385 is tied up in the unrestricted capital project fund, leaving general reserves of £(520,005).

Since the charity’s inception, it has been undertaking a large multi-year capital project to transform the River Garden estate with facilities to support its strategic objectives and overall mission. The charity relies on Scottish Government funding, which includes both revenue and capital funding, to support its charitable objectives in both the short & long term.

In December 2023, the Scottish Government paused all funding due to a perceived breach of grant contract. Following a thorough independent audit, which concluded that no breach had occurred, the Government has resumed revenue funding.

A revised revenue grant proposal for 24 residents has been submitted to the Scottish Government and is currently being reviewed. The Trustees will continue to monitor core revenue expenditure and are in continuous dialogue with the Scottish Government to secure support with future residential related costs.

We are also actively seeking revenue grant funding from other charitable organisations to support the charity’s goals in the short to medium term.

There are still outstanding matters regarding the capital funding required to complete Phase 1 of the project. We are in ongoing discussions with the Scottish Government regarding the release of these funds. Whilst we hope to reach a satisfactory resolution, we do not have confirmation on when this will occur. This prevents us from confirming the organisation’s status as a going concern at this time.

As a result of preparing the financial statements on a basis other than going concern, Fixed Assets are shown as Current Assets on the balance sheet.

The Board and Senior Leadership Team have worked diligently to engage with the Scottish Government to secure River Garden’s long-term future. We remain committed to resolve this matter and secure the necessary financial support, ensuring the sustainability of the organisation.

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INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO)

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

b. Reserves policy

The Trustees have established a policy whereby the charity would aim to maintain a level of free reserves equivalent to 3 months of operating costs, thus enabling the charity to sustain its charitable activities. Satisfactory levels of reserves and liquid cash resources can only be achieved by securing a sustainable mix of funding levels and income generation levels year on year. This is a short-term policy until such time the Capital project is completed and a longer-term view, followed by an annual review, would then be undertaken.

The Trustees acknowledge that the level of reserves is not adhering to the current policy. As discussed in the going concern section of these financial statements, the Trustees are dedicated to securing the future and longterm sustainability of River Garden.

c. Principal funding

We are grateful to the Scottish Government and the Social Inclusion Project for their funding contributions, as well as other donors - named, anonymous, and pro bono. These contributions support both our infrastructure development and operational costs.

d. Donated facilities and services

The Trustees and charity are very grateful for the donated services received from supporters. Significant amounts relate to architectural & legal services.

Structure, governance and management

a. Constitution

Independence From Drugs and Alcohol Scotland (SCIO) is a registered charity, number SC044032, and is constituted under a Constitution.

b. Methods of appointment or election of Trustees

As per the constitution, Charity Trusteeship is open to any person aged 16 or over and to any individual who subscribes to the purposes of the organisation and wishes to see them fulfilled. The maximum number of Charity Trustees is twelve and the minimum number of Charity Trustees is six.

There is no set term of office for trustees. When a trustee indicates that they wish to leave we will consider options for appointment. Our recruitment process involves identifying skills gaps and seeking to find qualified, committed people to fill these roles.

Potential trustees attend a Board meeting as observers to assess commitment and suitability for the role. References are sought prior to acceptance.

c. Board Developments

In 2024/25, the Board focused on diversifying and expanding trustee expertise.

The current seven trustees bring expertise in governance, finance, operations, research, and strategic planning across public, private, and charity sectors. Several trustees also have lived experience of substance dependency or familial connections to the issue.

Leadership Appointments

In August 2025, River Garden entered a collaboration with Simon Community Scotland, who will be providing interim Chief Executive services, as well as other support, all to be reviewed in January 2026.

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INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO)

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

Plans for future periods

While financial uncertainty continues, our immediate focus is on securing RGA’s survival by addressing key funding and operational challenges. Looking ahead, we aim to transform RGA into a flagship recovery project and explore the full potential of our 48.5-acre site for future development and new social enterprises.

Disclosure of information to auditors

Auditors

The auditors, AAB Audit & Accountancy Limited, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

Approved by order of the members of the board of Trustees and signed on their behalf by:

Date: 11/11/2025

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INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO)

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 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 which give a true and fair view of the state of affairs of the charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and 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 Constitution. 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.

Approved by order of the members of the board of Trustees and signed on its behalf by:

Trustee Date: 11/11/2025

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INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO)

Opinion

We have audited the financial statements of Independence From Drugs and Alcohol Scotland (SCIO) (the 'charity') for the year ended 31 March 2025 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, 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 Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 United Kingdom, including the Financial Reporting Council'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.

Emphasis of matter - non-going concern basis of preparation

We draw attention to Note 2.2 to the financial statements which explains that the Trustees are unable to conclude that the charity is a going concern, and therefore do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly the financial statements have been prepared on a basis other than going concern. Our opinion is not modified in respect of this matter.

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' 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, except to the extent otherwise explicitly stated in our report, 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.

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INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO) (CONTINUED)

Matters on which we are required to report by exception

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:

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees are responsible for the preparation of the financial statements which 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 liquidate the charity or to cease operations, or have no realistic alternative but to do so.

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INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO) (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 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 Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks within which the charity operates, focusing on those laws and regulations that have a direct effect on the determination of material accounts and disclosures in the financial statements. The laws and regulations we considered in this context were The Charities Trustee Investment (Scotland) Act 2005, together with the Charities SORP (FRS102) 2019. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

We identified the greatest risk of material impact on the financial statements from irregularities including fraud to be:

Our audit procedures to respond to these risks included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.

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INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO) (CONTINUED)

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an Auditors' 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 its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

for and on behalf of AAB Audit & Accountancy Limited Statutory Auditors 133 Finneston Street Glasgow G3 8HB

Date:

AAB Audit & Accountancy Limited are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 11

INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO) STATEMENT OF FINANCIAL ACTivrriES FOR THE YEAR ENDED 31 MARCH 2025 Unrestricted funds 2025 Restricted funds 2025 Total funds 2025 Total funds 2024 Note Income from: Donakn'ons arKI legacies Charitable activities Investments 161.137 218,263 5,000 301.889 166.137 520,152 133,638 2.727.269 785 Total income 379,400 306,889 686,289 2,861,692 Expenditure on: Charitable activities 395.490 822,038 1.217.528 1.462.106 Total expenditure 395.490 822,038 1.217,528 1.462,106 Net {expenditure)lincome Transfers belween funds (16.090) 214.670 {515,149) {214,670) {531.239) 1.399,586 16 Net movement in funds 198,580 (729,819) (531,239) 1.399,586 Reconciliation of funds". Total funds brought forward Net movement ￿ funds (348,200) 198.580 4,861,410 {729.819) 4,513,210 {531.239) 3,113,624 1.399.586 Total funds Ca￿led forward (149.620) 4,131,591 3,981.971 4.513,210 The Statement of financial activities includes all gains and losses recc*Jnised in the year. The notes on pages 15 to 30 fotm part of these financial statements. Page 12

INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO) BALANCE SHEET AS AT 31 MARCH 2025 R-_II-_R-D-_M-_RI-IEtEE 2025 2024 Nole Fixed assets Tangible assels Current assets stocks Debtors Cash at bank and in hand 12 13 2.750 26,245 54.110 2.750 621,191 105.355 4,585.087 5,849.032 Creditors: amounts falling due wthin one year 14 (499,696) (1,165,188) Net current (liabilities) l assets 4,085,391 4.683.844 Total assets less current liabilities 4.085,391 4.683,844 Creditors: amounts falling due after more than one year 15 (103,420) (170,634) Total net assets 3,981,971 4.513,210 Charity funds Restricted funds: Restricted funds Restricted capital project fund 16 16 9.165 4,852.245 4.131.591 Tolal restricted furKIs Unrestricted funds 16 16 4,131,591 (149,620) 4,861,410 (348,200) Total funds 3,981,971 4.513,210 ere approved and authorised for issue by the Trustees and signed on their behalf by. Date: 1111112025 The notes on pages 15 to 30 fomi part of these financial statements. Page 13

INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025 2025 2024 Note Cash flows from operating activities Net cash used in operats'ng activiiies 18 172.852 1.716,374 Cash flows from investing activities Purchase of tsngible fixed assets Interest payable Interest rec￿Ved (138,120) (2,515,773) (12.638) (11.035) 785 Net cash used in investing activities (150.758) (2.526,023) Cash flows from financing activities Cash inflows from new borrowirvJ Repayments of borrowing 50,000 (79.193) {73.339) Net cash used in financing activities (73.339) (29,193) Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year (51.245) (838,842) 105.355 944.197 Cash and cash equivalents at the end of the year 19 54.110 105,355 The notes on pages 15 to 30 fomi part of these financial statements Page 14

INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO)

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

1. General information

Independence from Drugs and Alcohol Scotland (SCIO) is a Scottish Charitable Incorporated Organisation registered in Scotland. The charity number is SC044032 and the registered number is CS001154. The registered office is

The principal activity of the charity is to provide support and services to aid individuals recovering from substance abuse.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended).

Independence From Drugs and Alcohol Scotland (SCIO) meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

2.2 Going concern

The financial statements are prepared on a basis other than going concern. At the balance sheet date, total unrestricted funds totalled £(149,620), of which £370,385 is tied up in the unrestricted capital project fund, leaving general reserves of £(520,005).

Since the charity’s inception, it has been undertaking a large multi-year capital project to transform the River Garden estate with facilities to support its strategic objectives and overall mission. The charity relies on Scottish Government funding, which includes both revenue and capital funding, to support its charitable objectives in both the short & long term.

In December 2023, the Scottish Government paused all funding due to a perceived breach of grant contract. Following a thorough independent audit, which concluded that no breach had occurred, the Government has resumed revenue funding.

A revised revenue grant proposal for 24 residents has been submitted to the Scottish Government and is currently being reviewed. The Trustees will continue to monitor core revenue expenditure and are in continuous dialogue with the Scottish Government to secure support with future residential related costs.

We are also actively seeking revenue grant funding from other charitable organisations to support the charity’s goals in the short to medium term.

There are still outstanding matters regarding the capital funding required to complete Phase 1 of the project. We are in ongoing discussions with the Scottish Government regarding the release of these funds. Whilst we hope to reach a satisfactory resolution, we do not have confirmation on when this will occur. This prevents us from confirming the organisation’s status as a going concern at this time.

As a result of preparing the financial statements on a basis other than going concern, Fixed Assets are shown as Current Assets on the balance sheet.

The Board and Senior Leadership Team have worked diligently to engage with the Scottish Government to secure River Garden’s long-term future. We remain committed to resolve this matter and secure the necessary financial support, ensuring the sustainability of the organisation.

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INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO)

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

2. Accounting policies (continued)

2.3 Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold.

Where the donated good is a fixed asset, it is measured at fair value, unless it is impractical to measure this reliably, in which case the cost of the item to the donor should be used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset class and depreciated over the useful economic life in accordance with the charity's accounting policies.

On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the charity which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 Government grants

Income from Government grants, whether capital grants or revenue grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

2.6 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

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INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO)

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

2. Accounting policies (continued)

2.7 Tangible fixed assets and depreciation

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

A full years depreciation is recorded in the year of acquisition, irrespective of the actual date the asset is purchased or placed in service.

2.8 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

2.9 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.10 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.11 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

2.12 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

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INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies (continued) 2.13 Pensions The charity contributes to a defined contribution pensi￿ scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year. 2.14 Fund accounting General funds are unrestricted funds ￿leh are available for use at the discretion of the Trustees in furtherance of the general objects'ves of the chanty and which have not been designated for other purposes. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or thich have been raised by the chanty for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Investmenl income, gains aThl losses are allocated to the appropriate fund. The capital project fund comprises the net book value of assets funded by grants & donations to build the residential accommodation and other capital projecls at River Garden. Depreciation is applied against this fund annually. Income from donations and legacies Unrestricted funds 2025 Restricled funds 2025 Total funds 2025 Total funds 2024 Donations 161.137 5,000 166,137 133,638 Total 2024 129,638 4,000 133,638 Donatr'ons include £67,114 of donalions in kind (2024 - £42.000). Page 18

INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Income from charitable activities Unrestricted funds 2025 Restricled funds 2025 Total funds 2025 Total funds 2024 Rental income Enterprise income Grants 200 201,219 2.525,850 207.743 10,520 207.743 312.409 301,889 218,263 301,889 520.152 2.727,269 Total 2024 201,419 2,525,850 2,727.269 See note 16 for a further breakdown of grant income. Investment income Unrestricled funds 2025 Total funds 2025 Total funds 2024 Investment income 785 Total 2024 785 785 Analysis of expenditure on charitable activities Summary by fund type Unrestricted funds 2025 Restricted funds 2025 Total 2025 Total 2024 Residential Beneficiaries 311,622 83.868 775,171 46,867 1.086.793 130.735 1.295.549 166,557 Enterprises 395,490 822,038 1,217.528 1.462,106 Total 2024 1,087,716 374,390 1,462,106 Page 19

INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Analysis of expenditure by activities Activities undertaken directly 2025 Support costs 2025 Total funds 2025 Total funds 2024 Residential Beneficiaries Enterprises 14,398 130.735 1,072,395 1,086,793 130.735 1.295,549 166.557 145,133 1,072,395 1,217,528 1,462,106 Total 2024 181,615 1,280,491 1,462,106 Analysis of direct costs Residential Beneficiaries 2025 Total funds 2025 Total funds 2024 Enterprises 2025 Staff costs Residents. food Training Horticultural supplies Cafe supplies 46,867 46.867 8,531 5.867 3.952 79.916 48,246 11,074 3.984 29,730 88,581 8,531 5,867 3.952 79,916 14,398 130,735 145.133 181,615 Page 20

INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Analysis of expenditure by activities (continued) Analysis of support costs Residential Beneficiaries & Enterprises 2025 Total fvnds 2025 Total funds 2024 Staff costs Depreciation Rates 282,873 548,664 2.713 24,405 476 282,873 548.664 2.713 24,405 476 296,604 591.577 2,989 26,846 309 2.239 23,192 14,931 50 14.486 3,868 11,603 60.282 215,219 16,296 Insurances Travel & entertainment Printing, postage & stationery Premises expenses Bank charges Recruitment expenses Telephone & computer costs Sundry expenses Motor expenses Heat & light Legal & professional fees Govemance costs - Audit fees 18,276 17,1TT 240 18.625 5,280 9,983 75,245 49,951 16,643 18.276 17,177 240 18.625 5.280 9.983 75.245 49.951 16,643 1,072,395 1,072.395 1.280,491 Auditors. remuneration 2025 2024 Fees payable to the chariws auditor for the audri of the charitys annual accounts 16.643 16,296 Fees payable to the charitys auditor in respect of: Taxation advisory services Accountancy servi 2.165 1.665 4.760 1,400 Page 21

INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Staff costs 2025 2024 Wages and salaries Social security costs Contribution to defined contribution pension schemes 297.749 21.933 10.058 309,443 24.859 10.548 329.740 344,850 The average number of persons employed by the charity during year was as follows: 2025 2024 Employees 11 15 No employee received remuneration amounting to more than £60.000 in erther year. The key management personnel includes the Trustees and the senicK leadership team of the charty. The senior leadership team consists of the General Manager and the Operations Manager. The total employee benefits for key managemenl personnel amounted to £102.526 (2024: £74.018). 10. Trustees. remuneration and expenses During the year, no Trustees received any remuneration or other benefits (2024 - £NIL). During the year ended 31 March 2025. no expenses ￿re reimbursed or paid diieclly to any of the trustees (2024 - £NIL). Page 22

INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 11. Tangible fixed assets Land and buildings Plant and Fixtures and Property machinery fitbngs improvements Total Cost or valuation At 1 April 2024 Additions Disposals 629.751 55.835 155.683 5,377,021 205,234 (274,324) 6.218,290 205,234 (274.324) At 31 March 2025 629.751 55,835 155,683 5,307,931 6.149,200 Depreciation At 1 April 2024 Charge for the year On disposals 84,565 12.595 40,986 6.408 86,814 30.369 886,189 554,157 (54.865) 1,098,554 603.529 (54,865) At 31 March 2025 97.160 47.394 117.183 1,385,481 1.647,218 Net book value At 31 March 2025 532.591 8.441 3.922,450 4.501,982 At 31 March 2024 545.186 14.849 68.869 4,490,832 5.119,736 The disposal amount of £274.324 relates to a purchase credit note received during the year ended 31 March 2025. This credrt note pertains to an asset that was Original￿ capitalised in the prior year (year ended 31 March 2024). As such, this is not a disposal of the asset. but rather a correction to the Or￿InallY recorded cost of the addition. As part of this adjustment, the associated depreciation previously charged ￿ the overstated portion of the asset has been eliminated. 12. Stocks 2025 2024 Finished gocrfjs and gcM)ds for resale 2.750 2,750 Page 23

INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 13. Debtors 2025 2024 Trade debtors Other debtors PrePa￿ents and accrued income 2.247 6.205 4,790 610,196 23.998 26,245 621,191 14. Creditors: Amounts falling due within one year 2025 2024 Bank loans Other loans Trade creditors Other taxation and social security Acuuals 28.359 102,519 165.627 140.801 62.390 28,359 108,644 605,251 130,679 292,255 499,696 1,165,188 Other loans include amounts received from individuals. including some resigned Trustees. These loans were fully repaid subsequent to the year end. Subsequent to the year end. an obligalion to settle a liabilty of £105.454. included within Other taxation and social securty, lapsed. This event has not resulted in an adjustrnent to these financial statements. as it relates to conditions arising after the balance sheet date. The Charty has fixed rate bank k)ans from RBS. RBS hold standard securibes over the Bothy Buildir¥J at River Garden. S. Creditors: Amounts falling due after more than one year 2025 2024 Bank loans 103.420 170,634 Page 24

INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 16. Statement of funds Statement of funds - current year Balance al 31 March 2025 Balance at 1 April 2024 Transfers inlout Income Expenditure Unrestricted funds Designated funds Residents Fund 6,410 (6.410) General funds General Funds - all funds (622.101) 267.491 312,286 67.114 (352,810) (42.680) 142.620 78.460 (520.005) 370,385 Unrestricted capital project fund (354,610) 379,400 (395,490) 221,080 (149,620) Total Unrestricted funds (348,200) 379.400 (395,490) 214.670 (149,620) Restricted funds Scottish Govemment 202.889 99,000 (202,889) (106,045) {5,000) (215) (571) (1,334) sip Neogen CMS Schuh Trust EV Charger grant 7.045 215 571 1,334 9.165 306.889 (316.054) Restricted capital project fund Restricted capital project fund 4,852.245 (505,984) (214.670) 4.131.591 Totsl Restricted funds 4,861,410 306.889 (822,038) (214.670) 4.131,591 Total of funds 4,513,210 686,289 (1,217,528) 3,981,971 Page 25

INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO)

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

16. Statement of funds (continued)

General funds - unrestricted monies which are expendable in furtherance of the objectives of the charity.

Unrestricted Capital Project Fund - this represents the net book value of assets purchased with unrestricted funds to build the residential accommodation and other capital projects at River Garden. During the previous financial year, the Trustees performed an exercise to present the funds analysis in a way which is transparent about the amount of funds that are tied up in fixed assets. This is what the significant transfers in the prior year relate to.

Scottish Government (Revenue Fund) - this is in respect of salary costs & associated expenditure. The amount both received and expended in the year was £202,889.

SIP - this funding is to support the overall River Garden project.

Neogen - this fund represents a donation received to cover certain professional fees.

Restricted Capital Project Fund - this represents the net book value of assets funded by grants & donations to build the residential accommodation and other capital projects at River Garden. Historically, donations & grants remained within each individual restricted fund pot with only the depreciation charge being set off against this. After consideration by the Trustees, an exercise was performed to transfer all of these balances to one restricted capital fund to ensure transparency for users of the financial statements. This is what the significant transfers in the prior year relate to.

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INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 16. Statement of funds (continued) Statement of funds - prior year Balance al 31 March 2024 Balance at 1 April 2023 Transfers inlout Income Expenditure Unrestricted funds Residents Fund 6,840 (430) 6,410 General funds General Funds - all funds Unrestricled capital project fund 273.462 325.002 (535,825) (40,116) (684.740) 307,607 (622,101) 267,491 273.462 325.002 (575,941) (377.133) (354,610) Total Unrestricted funds 273,462 331,842 (576,371) (377,133) (348,200) Restricted funds Garfield Hugh Fraser Colin Weir Scottish Govemment sip Robertson 27.902 27.718 29.204 2,141,420 191.565 188.630 (14.924) 172,500 76.147 {27.902) (27.718) (29.204) (268,500) {4,315,420) (41,215) (193.305) (188.630) 14.924 (172,500) (76.147) 2,442,500 50,000 7.045 Individuals and trusts CitylSPDC Ca￿Or Neogen Green Action Trust {4,000) (8,950) 8,950 Health and Social Care Partnership CMS Schuh Trust EV Charger grant {2,785) (758) {8,066) 215 571 1.334 (671 } 9,400 10,000 (10,000) 2,840.162 2.529.850 (334.274) (5,026.573) 9.165 Restricted capital project fund Restricted capital project fund (551,461) 5,403.706 4.852,245 Page 27

INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 16. Statement of funds (continued) Statement of funds - prior year (continued) Balance al 31 March 2024 Balance at 1 April 2023 Transfers inlout Income Expenditure Total Restricted funds 2,840,162 2,529,850 (885,735) 377,133 4,861,410 Total of funds 3,113,624 2.861.692 (1.462.106) 4.513,210 17. Analysis of net assets between funds Analysis of net assets between funds - current year Restricted Unrestricted Capital funds Project fund 2025 2025 Total funds 2025 Tangible fixed assets Current assets Creditors due within one year Creditors due in more than one year 370,391 83,105 (499,6g6) (103,420) 4,131,591 4,501,982 83,105 (499,696) (103,420) Total (149,620) 4,131.591 3.981,971 Analysis of net assets between funds - prior year Restricted Restricted Capital funds Project fund 2024 2024 Unrestricted funds 2024 Total funds 2024 Tangible fixed assels Current assets Creditors due within one year Creditors due in more than one year 267,491 720,131 (1.165.188) (170,634) 4,852.245 5,119,736 729,296 (1.165,188) (170,634) 9,165 Total (348.200) 9,165 4,852.245 4,513,210 Page 28

INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 18. Reconciliation of net movement in funds to net cash flow from operating activities 2025 2024 Net incomelexpenditure for the year (as per Statement of Financial Activities) (531.239) 1.399.586 Adjustments for: Depreciation charges Capitaltsed donated services Loss on the disposal of fixed assets Decrease in stocks Decreasel(increase) in debtors Increasel(decrease) in creditors Interest payable Inlerest receivable 603,529 (67.114) 219.459 591,577 750 (565.856) 280,067 11,035 (785) 594.946 (659.367) 12.638 Net cash provided by operating activities 172.852 1.716.374 As explained in note 11, during the year ended 31 March 2025. a purchase credtt note was received relating to an asset that had been capitslised in the prior year. The correction was processed through the fixed asset regisler as a reduction in asset value, ￿lch has resulled in a "loss on disposal of fixed assets" being reported in the cash flow stalemenl. This reflects the accounting treatrnent of the adjustment and does not represent an actual disposal rx cash oufflow. 19. Analysis of cash and cash equivalents 2025 2024 Cash in hand 54.110 105.355 Total cash and cash equivalents 54.110 105,355 20. Analysis of changes in net debt Other non- cash At 31 March changes 2025 At 1 April 2024 Cash flow5 Cash at bank and in hand Debt due within 1 year Debts due after 1 year 105,355 (137.003) (170,634) (51,245) 73,339 54.110 (67.214) (130,878) 67.214 (103,420) (202,282) 22,094 (180,188) Page 29

INDEPENDENCE FROM DRUGS AND ALCOHOL SCOTLAND (SCIO) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 21. Capital commitments 2025 2024 Contracted for but not provided in these financial statements Drainage repair works 48.630 22. Pension commitments The charty contributes to a defined contribution pension scheme and the pension charge represents the amounts payable by the charty to the fund in respect of the year. The amount contributed wtthin the year ending 31 March 2025 was £10.058 (2024- £10.548}. 23. Operating lease commitments At 31 March 2025 the charity had commitments to make future minimum lease payrnents under non- cancellable operatirKJ leases as follows: 2025 2024 Not later than 1 year Later than 1 year and not later than 5 years 4,004 7,194 4.004 4.004 11,198 24. Related party transactions Control Throughout the year. the charity ￿as controlled by the Board of Trustees. Transactions There were no related paty transactions in the current financial year. During the prior year, the charity received donations totalling £12.500 from fv40 separate companies in which Trustees were key management personnel. Page 30