CULLISVALE_SERVICES_LIMIT - Accounts

The Trustees present their report and financial statements for the year ended 31 March 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

The original purpose of the charitable group was to:

• support the prevention or relief of poverty

• advancement of education

• advancement of citizenship or community benefit

The charity's mission and vision statement is "to enhance people's lives by supporting them to attain a qualified certification of work readiness across a variety of sectors that will improve their skill set leading them to enter the world of work, whilst at the same time to support 3rd Sector & SME Employers and local communities by undertaking a variety of administrative services".

The charity was effectively dormant during the period under review as the trade is carried out by a fellow subsidiary of the group with a donation being received from it via the ultimate parent company.

The charity did not provide any grants during the period under review.

The financial statements have been prepared in accordance with the current United Kingdom statutory requirements and the charity's Memorandum and Articles of Association.

The charity had a net inflow of resources for the year of £18,060 (2022: £31,368). This leaves a year end overdrawn unrestricted reserves figure of £113,719 (2022: £131,779).

The trustees have not established a reserves policy at this stage as they continue to seek to stabilise the financial health of the charity.

In these austere trading times, the trustees will look to continue to operate a full cost recovery position on the overhead expenses of the business to protect the charity against future economic uncertainties and to allow the trustees to pursue the stated aims of the company and its parent entity.

The charity is a limited company with an issued share capital of 100 ordinary shares of £1 each. It is a wholly owned subsidiary of a charity which is a company limited by guarantee, The Scottish Foundation for Social and Economic Development. The Company is governed by its Memorandum and Articles of Association dated 18 March 1992.

The charity is recognised as a Scottish Charity, Number SC022649. In the trustees' opinion the company is not liable to UK income or corporation tax under the provisions of the Income and Corporation Taxes Act 1988, sections 505 and 506.

The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

The board is responsible for the appointment of new members and continues to monitor the operational and strategic needs of the business, and will consider the appointment of new directors with relevant specialist skills that it believes will enhance the charity in the pursuit of its strategic goals.

New trustees are issued with a welcome pack which includes further information on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the business plan and recent financial performance of the charity.

None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

The company's current policy concerning the payment of trade creditors is to:

• settle the terms of payment with suppliers when agreeing the terms of each transaction;

• ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and

• pay in accordance with the company's contractual and other legal obligations.

The charity has a Board of Directors which is responsible for general policy decisions and for ensuring that the appropriate safeguards are in place. The board consists of three non-executive trustee, all experienced in their professional fields namely, business finance and development, education and third sector social enterprise.

The charity employs a General Manager to manage the day to day operations of the charity whilst overseeing the business financial management and corporate governance requirements.

At present the board is satisfied with its composition which it believes to be effective in managing the business and driving its short, medium and long term strategy.

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

I report on the financial statements of the charity for the year ended 31 March 2023, which are set out on pages 4 to 9.

The charity’s Trustees, who are also the directors of Cullisvale Services Limited for the purposes of company law, are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investments (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The Trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the 2006 Accounts Regulations does not apply. It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Act and to state whether particular matters have come to my attention.

My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeks explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the financial statements.

In connection with my examination, no matter has come to my attention:

to keep accounting records in accordance with section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and

to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;

to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.

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

All income and expenditure derive from continuing activities.

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2023.

The Trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Cullisvale Services Limited is a private company limited by guarantee incorporated in Scotland. The registered office is 12 Eastbank Drive, Glasgow, G32 0HU, Scotland.

The financial statements have been prepared in accordance with the charity's [governing document], the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

During the year to 31 March 2023 the charity recorded a surplus of £18,060 (2022 -£31,368). At the end of 31 March 2023 the charity's total deficit had decreased to £113,719 (2022 - £131,779). The charity has a fellow subsidiary, Portfolio Consultants Limited. This Company continues to trade profitably and the trustees anticipate that funds will be received from this company to reduce its net deficit position and enable the charity to meet any liabilities as they fall due for a period of at least 12 months from signing these financial statements. As a consequence the trustees believe it is appropriate for the financial statements to be prepared on a going concern basis.

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

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

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

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

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

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

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

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

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

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

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

The charity is exempt from corporation tax on its charitable activities.

The charity operated loan accounts during the year with companies under common control. At the balance sheet date the total amount receivable was £34,782 (2022 - £52,782). The loan is included within creditors falling due within one year and is unsecured, interest free and has no fixed repayment terms.

No other transactions with related parties were undertaken such as are required to be disclosed under the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

The company's ultimate parent company is The Scottish Foundation for Social and Economic Development, a company registered in Scotland (Charity Number: SC004151), limited by guarantee and having charitable status. The company exercises its control through its voting powers.

The principal activity of The Scottish Foundation for Social and Economic Development is advancement of educational services and relief of poverty through community development initiatives.