SLEEP_SCOTLAND - Accounts

The Trustees present their Report, together with the accounts for the year ended 31st March 2021. The Board have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) 2019 in preparing the annual report and financial statements of the charity.

The financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) 2019.

The aim of Sleep Services is to provide face to face or telephone support to families of children and young people with special needs and/or severe sleep problems enhancing their health and welfare.

Sleep Services also provides training courses to support professionals from Education, Health, Social Services and the voluntary sector. These include Sleep Counsellor training, Sleep Awareness training, Sound Sleep training and CPD Refresher days. Promoting the importance of sleep through social media, with the Scottish Government and other bodies is also a key objective, in particular in relation to supporting mental health.

Transitional Education Extra Needs Support (from here on referred to as TEENS+).

TEENS+ is a unique service for young people with autism, complex communication needs and learning difficulties. TEENS+ provides individualised, tailor-made and person centred post-school continuation of education. The programme offers lifelong learning opportunities through education, communication, life skills and personal outcomes. The holistic approach is delivered by three key services: Transitional education programme, Life-long education programme and Befriending programme.

Befriending is in addition to the TEENS+ daily education service and aims to provide engaging activities in the evenings and weekends, providing a range of sessions from 3 hours to weekend respite. We continue the learning experience from TEENS+ and build on the ability to transfer skills in student’s daily lives.

Sleep Services achievements

Due to the coronavirus pandemic, we re-evaluated how we provide face-to-face elements of our work. We moved our Sleep Services team to working from home, and have kept services running, where possible.

We successfully migrated all our training courses online with a blended approach of self-led learning via our new digital learning portal and online, tutor led workshops. Feedback on our new courses is overwhelmingly positive with 100% of delegates reporting being satisfied or very satisfied and all would recommend to others.

Due to restrictions on travel and contact, our Sleep Counsellor support meetings were moved online. The turnout for these meetings has been 28% higher than in previous years and feedback has been that they are more accessible to attend. We are likely to keep these meetings virtual going forward. 

Our Sleep Support Line team moved to remote working very quickly working via email and phone. Demands for support were at an all-time high during 2020/21, due in part to the pressures of multiple lockdowns, schools moving to remote learning, and dramatic changes in routines. We saw a 56% increase in requests for support on previous years and were able to support 25% more families. As a result of this increased demand, we have a waiting list for the first time in the support line's history. The team worked through the year to streamline the referral process as much as possible, as well as providing some initial sleep information at first point of contact so that families had something to get them started while they waited. 

Sleep Services have adapted well to remote working. All funder targets were either achieved or exceed this year, with the exception of running open sleep counsellor courses. This course was launched as a pilot in March 2021 and will be available as an open course through 2021/22. Our funders were kept updated on the situation and were very supportive of the work we were able to achieve.

TEENS achievements:

Despite restrictions TEENS+ have supported 4 students to transition to positive destinations including full-time college, supported accommodation and other support services. We successfully welcomed 4 students into the service during the year.

Throughout the pandemic we have closely followed national guidelines and have been operating a blended model approach. We have tailored our approach to meet the needs of students and families, using a combination of home visits, community outreach, online sessions and reduced capacity centre attendance. During the year we have also produced 772 home resource packs for students to work on at home with their families. Health Protection Scotland commended us for our approach on safe practice and 94% of parents have been satisfied or very satisfied with our service during the pandemic.

Throughout the year we have worked in partnership with organisations such as Upwards Mobility, The Princess Trust and Conservation Volunteers to offer students a range of volunteering and social opportunities. The feedback from students and partners has been very positive, with students saying they have valued the chance to meet new people and try new things. We will continue to develop these partnerships in the future.

Befriending achievements

This service currently is accessed by 14 students, which is an increase on previous years.

During lockdown we have been able to provide evening and weekend support sessions, allowing parents and carers time to themselves. Currently we are one of a few running services during restrictions and, despite restrictions, have continued to work with families to ensure our person-centred objectives are applied in both community and home settings.

The results for the year are set out in the Statement of Financial Activities. This past financial year has presented many challenges for the charity, particularly with the impact of the Covid pandemic. The charity reacted quickly to manage the impact of the national lockdown restrictions, however the direct impact of these caused an unplanned deficit of £88,000.

Covid19 had an effect on all of our income streams in 20/21 leading to a projected shortfall of over £440,000 for the year. TEENS+ centres were initially closed during lockdown but we swiftly moved to a blended delivery model. Due to ongoing restrictions this blended approach stayed in place for the remainder of the financial year. Restrictions on centre numbers, the inability to take on new students and increased staff travel, cleaning and PPE costs all contributed to negative pressure on this year’s financial position. Scottish Government and Local Authority funding remained in place, albeit frozen at 19/20 levels, despite disruption to service delivery. The TEENS+ Befriending service was also suspended for the majority of 20/21 due to the pandemic.

We took the decision to move our sleep training courses online resulting in a gap in provision while we developed this online content. We have needed to invest in new, online training and digital learning platforms, resulting in unplanned costs. However, with this time and resource investment is likely to have a longer-term positive impact on finances as we experience an increased ability to deliver training remotely.

We invested in fundraising support to diversify our income streams and address funding gaps and were successful in receiving two Covid19 grants from the Scottish Government and the Big Lottery for our Sleep Support Line & Counselling services, allowing increased demand to be met.

Costs were reduced to offset lower TEENS+ income levels by maintaining the correct staff/student ratios, furloughing sessional staff where possible and delaying recruitment to vacant posts. These reductions were partially offset by the increased costs of PPE and cleaning.

Sleep Training costs also reduced due to the break in face to face courses – travel, accommodation and venue costs were not incurred.

Throughout the year we continued to invest in our services to secure a more efficient and robust organisation in the future including new IT systems to support both TEENS+ and Sleep services provision.

Principal Funding Sources

Around 84% of funding is generated through charging for our TEENS+, Befriending and Sleep Training services. The balance is made up from grants from the Scottish Government, Local Authorities, the Big Lottery and other Trusts.

Funding for TEENS+ is received from Councils and individual users, who are supported by the Department of Health & Social Care, SDS & ILF.

Financial impact of any pension liability

Sleep Scotland operates a defined contribution scheme for its employees with NOW Pensions.

Social, environmental or ethical policies

The charity does not have a formal policy governing these issues.

Reserves policy

The Board have adopted a policy whereby the unrestricted funds and funds restricted for use in core activity areas should be sufficient to cover any short-term fluctuations in core grant funding. Such funds are currently held in a current account with any surplus available to be invested in short-term deposits.

Ability to operate in future periods

There are currently no concerns about the charity’s ability to operate in future periods but the current risks and uncertainties are noted in the section below.

Investment policy

Sleep Scotland does not have a formal investment policy but the Board are considering investment options available to the charity whilst balancing the requirement for liquid funds in a challenging financial environment. Funds are held in current accounts or short-term deposit accounts.

Principal risks and uncertainties

Financial risks remain the potential reduction of principal grant funding sources and failure to secure replacement funding for current grants once completed. These are managed through on-going and proactive relationships with existing funders along with advance planning and early action for replacement funding requests. During the Covid pandemic, these relationships have proven a key strength of the organisation to manage its services and finances.

Fluctuations in grant funding for core activities have historically presented a significant risk to the charity. We are working with an external Fundraising Consultant and submitted a number of applications to support the activity of both Sleep Services and Teens+. We recently received 3 year funding from the Robertson Trust for our Sleep Counsellors and several one-off grants supporting our other services.

Future factors that may affect financial performance

•     Council/Health & Social Care budget constraints (TEENS+)

•     Levels of ongoing Scottish Government grant support (Sleep Services)

•     Levels of Local Authority grant support (Sleep Services)

•     Maintaining our charges in line with inflation and the Scottish Living Wage (TEENS+)

•     Additional costs associated with the response to the Covid pandemic such as PPE and purchase of new digital packages to support services (Sleep Services and TEENS+)

Plans for the future

Gail Burden took over as CEO from Karen Jenkinson in January 2021. An initial review of the charity identified a number of necessary changes to reduce overheads and respond to the changed landscape the charity was operating in. An immediate change process was implemented, including downsizing and moving our head office facility, restructuring support services and investing in a new CRM. The financial impact of some of these changes will not be realised until the next financial year.

Going forward, the charity will be implementing a new strategy and reviewing its governance and structure. The board is positive for the future with plans to develop and grow both Sleep Service and TEENS+. The charity will be rebranding to create a new identity that reflect our values and purpose across both our services.

The new strategy will be published in September 2021 but early plans include:

Sleep Services

• Resuming in-person sleep training when restrictions allow, but continuing to offer online training as an alternative

• Expand sleep training beyond children and young people, offering specialist training to other networks

• Continue to offer online training as an option in the future, regardless of covid restrictions easing.

• Secure funding to protect the Sleep Support Line in Scotland and explore options to offer the service outside of Scotland

• Start to measure and demonstrate our impact on the people who use our services and the wider national environment

TEENS+

• Expand our Liberton Brae centre by repurposing our old Sleep Scotland office for new centre space

• Develop our education focus by working with NHS Lothian to offer a Speech and Language Therapist for all our students

• Enhance our community and employability work to develop more opportunities for our students to learn.

• Review staffing and training/support to ensure we offer a high-quality service with dedicated and motivated staff.

Befriending

• Re-establish the Befriending service as lockdown restrictions ease

• Review Befriending and create clear a structure and purpose for the service

• Work with the Care Inspectorate to ensure the Befriending service is included in our registration.

Charity name

The charity is registered under the name Sleep Scotland. It also uses the name TEENS+ for an education service for young people with complex needs.

Governing document

The charity is controlled by its governing document, the Articles of Association updated in August 2019 and constitutes a company limited by guarantee, as defined by the Companies Act 2006.

Recruitment and appointment of Trustees

In accordance with the Articles of Association, trustees are appointed for a term of three years and may offer themselves for re-appointment for a second term. The Trustee Appointments Committee shall ensure an adequate skills assessment is in place to inform any appointment decision.

Benefits

Trustees receive no remuneration. Reasonable attendance expenses and other duties may be claimed.

Induction and training

A short induction programme is arranged for new trustees. Training opportunities are made available.

Organisational Structure

The Board of Directors form the Committee of Management of Sleep Scotland. The CEO is a salaried employee and has the delegated responsibility to manage the daily operations of the organisation.

Benchmarking and setting remuneration of key employees

All roles were benchmarked against similar roles in the relevant sectors and salary scales adjusted with effect from April 2018.

Related parties

Two trustees are parents of students attending TEENS+: TC Campbell and A Taylor.

Trustee Richard Stark is Head of Business Development at Law at Work who were contracted to supply employment law advice to Sleep Scotland until 19 May 2021, when we moved to an alternative supplier.

The Ravenscroft building, leased by Sleep Scotland for use by TEENS+, was owned by a close family member of former CEO, Jane Ansell who left the organisation in November 2019. The building was subsequently sold to Beech Breaker Limited on 16/11/2020.

Risk management

The trustees have a duty 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.

The Committee of Management recognise their responsibility for the management of risk throughout the organisation and have established a set of policies and procedures to cover all key areas. The management of specific risk areas has been delegated to senior staff on an ongoing basis. Overview monitoring is carried out at Board level.

Reference and Administrative Information

The Directors of the charitable company (the charity) are its Trustees for the purposes of Charity Law and throughout this report are collectively referred to as the Trustees. The Trustees who served during the year are as follows:-

Statement of trustees' responsibility

The charity Trustees (who are also the Directors for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law 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 charitable company and of the incoming resources and application of resources, including the income and expenditure of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

•     select suitable accounting policies 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 UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

•     prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) 2006 Regulations (as amended). They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Thomson Cooper were appointed auditors to the company in accordance with section 485 of the Companies Act 2006. A resolution proposing that they be re-appointed will be tabled at a future Board Meeting.

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

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

Opinion

We have audited the financial statements of Sleep Scotland (the ‘charity’) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the 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 Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the charitable company's affairs as at 31 March 2021 and of its incoming resources and application of resources, for the year then ended;

have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).

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

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 uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

We have nothing to report in respect of the following matters in relation to which the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:

the information given in the financial statements is inconsistent in any material respect with the trustees' report; or

proper accounting records have not been kept; or

the financial statements are not in agreement with the accounting records; or

we have not received all the information and explanations we require for our audit.

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

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 auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

We considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: existence and timing of recognition of income, posting of unusual journals along with complex transactions and non-compliance with laws and regulations. We discussed these risks with management, designed audit procedures to test the timing and existence of revenue, tested a sample of journals to confirm they were appropriate and inspected minutes from meetings held by management and trustees for any reference to breaches of laws and regulations. In addition, we reviewed areas of judgement for indicators of management bias to address these risks.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the officers and other management (as required by the auditing standards).

We reviewed the laws and regulations in areas that directly affect the financial statements including applicable charity and company law and considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.

With the exception of any known or possible non-compliance with relevant and significant laws and regulations, and as required by the auditing standards, our work in respect of these was limited to enquiry of the officers and management of the charity.

We communicated identified laws and regulations and potential fraud risks throughout our team and remained alert to any indications of non-compliance or fraud throughout the audit. However the primary responsibility for the prevention and detection of fraud rests with the trustees.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

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

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with 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 the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

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

All income and expenditure derive from continuing activities.

The Trustees consider that the company is entitled to the exemption from the requirement to have an audit under the provisions of section 477 of the Companies Act 2006 ("the Act") and members have not required the company to obtain an audit for the year in question in accordance with section 476 of the Act. However, an audit is required in accordance with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005.

The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and for preparing financial statements which give a true and fair view of the state of affairs of the company as at 31 March 2020 and of its net incoming resources for the year in accordance with the requirements of sections 394 and 395 of the Act and which otherwise comply with the requirements of the Act relating to financial statements, so far as applicable to the company.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to small companies within Part 15 of the Companies Act 2006 and in accordance with Financial Reporting Standard 102.

Sleep Scotland is a private company limited by guarantee incorporated in Scotland. The liability of each member in the event of winding-up is £1.

The registered office is 18G Liberton Brae, Edinburgh, EH16 6AE.

The financial statements have been prepared in accordance with 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 1st January 2019) - (Charities SORP (FRS 102), and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

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

The financial statements are prepared on a going concern basis under the historical cost convention.

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for a period of not less than 12 months. The trustees are aware of the potential impact on the charity of the Coronavirus pandemic and have reviewed the organisation’s budgets and cashflow based on the potential impact on revenue for the following financial year. Should this occur the trustees are satisfied that the charity has sufficient cash reserve to cover any shortfall of income over at least the next twelve months. The trustees consider that the charity has sufficient reserves to ensure short term liquidity and longer-term financial viability. As such the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

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

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost 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.

All incoming resources are recognised when the charity has entitlement to the funds, any performance conditions have been met, it is probable that the income will be received, and the amount can be measured reliably.

Income received from donations and legacies are recognised where there is entitlement, certainty of receipt and amounts can be measured. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained, then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

Income received from charitable activities, where related to performance and specific deliverables, are accounted for as the charity earns the right to consideration by its performance.

Grants, where entitlement is not conditional on the delivery of a specific performance, are recognised when the charity becomes unconditionally entitled to the grant. Where a grant is received for a specific purpose, it is included in restricted income and any unexpended portion carried forward as a restricted fund.

Income from other trading activities is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.

Investment income includes interest on funds held on deposit and is included when receivable and the amount can be measured reliably by the charity, normally upon notification of the interest paid or payable by the Bank.

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required, and the amount of the obligation can be measured reliably. Staff costs are allocated on the basis of time spent on each activity by employees and other overheads according to estimated usage. Expenditure is classified under the following activity headings, where applicable:

•    Cost of raising funds comprises the costs of the general fundraising activities of the charity, and their associated support costs.

•    Expenditure on charitable activities comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries, including the costs of delivering various project objectives, and their associated support costs.

•    Other expenditure comprises costs not falling into any other heading.

The charity is not registered for VAT and therefore all expenditure is recorded inclusive of VAT.

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include office costs, payroll, general administration, and governance costs and are incurred directly in support of expenditure on the objects of the charity. The bases on which support costs have been allocated are on a direct basis or as a proportion of time spent.

The total cost of assets held under operating leases is charged to the profit and loss account as they fall due.

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

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

Cash at bank and cash in hand includes cash and all amounts held within bank current and deposit accounts.

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.

The charity operates a defined contribution scheme. The amount charged to the Statement of Financial Activities represents the contributions payable to the scheme in respect of the accounting year.

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

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

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

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

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

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

Grants and awards receivable

TEENS+ Service charges

Training course fees

Befriending income

Sundry income

CJRS income

Bank interest

Audit fees

Other administrative overheads

All costs are allocated to activities on a direct basis, where appropriate, with all shared expenditure allocated on a percentage basis, calculated related to time spent.

The average monthly number of employees during the year was:

The total amount of employee benefits received by key management personnel of the charity is £197,382 (2020 : £263,232). The charity considers its key management personnel comprise the Chief Executive Officer, Deputy Chief Executive Officer, Sleep Services Manager, TEENS Manager, Befriending Manager, HR Manager, Finance Manager and Office Manager.

Purposes of Restricted Funds

Sleep Counselling

and Support         Amounts represent funding received for Sleep Counselling.

TEENS+         Amounts represent funding received for the TEENS+ education project.

Ravenscroft        Amounts represent funding received from third parties towards the                 development of Ravenscroft Hall.

Unrestricted Funds

Restricted Funds

Unrestricted Funds

Restricted Funds

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

The charity has provided services to a close family member of Jane Ansell during her period of employment. These services have a value of £nil (2020: £50,507) and have been charged to Jane at arms length. At the balance sheet date, the amount of £nil (2020: £nil) was outstanding in relation to the services provided.

During the prior year, two close family members of Jane Ansell were employed as sessional workers, the total amount paid to these family members during the period was £nil (2020: £7,784).

The charity has provided services to two close family members of Colin Campbell during the year. These services have a value of £88,011 (2020: £97,049) and have been charged to Colin at arms length. At the balance sheet date, the amount of £nil (2020: £1,756) was outstanding in relation to the services provided. This is included within trade debtors in the accounts.

The charity has provided services to a close family member of Alan Taylor during the year. These services have a value of £30,237 (2020: £42,157) and have been charged to Alan at arms length. At the balance sheet date, the amount of £99 (2020: £1,198) was outstanding in relation to the services provided. This is included within trade debtors in the accounts.