The trustees present their annual report and financial statements for the year ended 31 March 2022.
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 charitable company's Memorandum and 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)".
Mayfield and Easthouses Development Trust (MAEDT) aims to achieve the sustainable regeneration of a community through addressing the economic, social, environmental and cultural needs of the Mayfield and Easthouses community. In achieving the sustainable regeneration of Mayfield and Easthouses we aim to provide a hub for the local community, identify and respond to opportunities that become available to the community and provide a central, trusted point of contact, information, leadership and facilitation to, with and for the community we serve.
We work in partnership with Midlothian Council, NHS, local, national and county wide third sector organisations and other groups and agencies for the benefit of the people of Mayfield and Easthouses. We continually engage with local residents and our service users, giving our local community a voice.
Mayfield and Easthouses Development Trust has been set up to benefit the community of Mayfield and Easthouses with the following object and activities:
To manage community land and associated assets for the benefit of the Community and the public in general as an important part of the protection and sustainable development of Scotland’s natural environment;
To provide within Mayfield and Easthouses recreational facilities, or organise recreational activities, with the object of improving the conditions of life for the persons for whom the facilities or activities are primarily intended;
To advance education and in particular to promote opportunities for learning for the benefit of the general public;
To advance the arts and/or culture;
To advance environmental protection and improvement in Mayfield and Easthouses through the provision, maintenance and/or improvement of public open space and other public amenities and other environmental and regeneration projects (but subject to appropriate safeguards to ensure that the public benefits so arising clearly outweigh any private benefit thereby conferred on private landowners);
To prevent or relieve poverty particularly among the residents of Mayfield and Easthouses;
To relieve those in need by the promotion of trade and industry within Mayfield and Easthouses for the benefit of the general public;
To relieve those in need by promoting training, particularly among residents of Mayfield and Easthouses, and with particular reference to skills which will assist the participants in obtaining paid employment;
To help young people, particularly those resident in Mayfield and Easthouses, to develop their physical, mental and spiritual capacities, such that they may grow to full maturity as individuals and as members of society;
To advance heritage and/or preserve, for the benefit of the general public, the historical, architectural and constructional heritage that may exist in and around Mayfield and Easthouses in buildings (including any structure or erection, and any part of a building as so defined) of particular beauty or historical, architectural or constructional interest;
To advance the health of the residents of Mayfield and Easthouses, and to assist in the relief of ill health and the provision of health education for such residents;
To encourage, stimulate and support volunteering principally in Mayfield and Easthouses;
To advance citizenship and/or community development (including the promotion of civic responsibility and the promotion of the voluntary sector and/or the effectiveness or efficiency of charities);
To promote, establish, operate and/or support other similar schemes and projects of a charitable nature for the benefit of the community within Mayfield and Easthouses.
The trustees have paid due regard to guidance issued by OSCR in deciding what activities the charitable company should undertake.
This has been a different kind of year altogether. After COVID has come Recovery, which has presented us with different challenges and opportunities.
Our Garden has enabled us to offer safe space to bring our community together, and our refurbished Pavilion has given us the opportunity to start up our Community Café. After a slow start as people found their confidence to come back out of their homes and into shared spaces, we had a glorious summer that brought people into the garden and our Café. Our Pantry was developed in response to the needs presented during COVID and the continuing bite of austerity and we are delighted by the reception given by the community. We really are growing in confidence and trust with the community we serve and are heartened by the support we have been given by funders, partners, staff and volunteers.
After securing funding and then being hit by COVID, it has been good to get back to our normal business of working with and for the Community of Mayfield and Easthouses to make this a better place to live, work and play.
We continue to be supported and guided by MVA, DTAS and the various forums and organisations that surround us and are now in the position to support others as we lead the way with our Pantry model and our inclusive approach to community and partner engagement.
Our staff team is now assembled and our volunteer team is growing. We are providing solid, trustworthy and forward-thinking services that are imaginative and inclusive in the approach to alleviating poverty and regenerating the local area. We are making a difference to the people we work with and making a positive mark within our community. Our services are growing in response to the needs and desires of the people we serve and we are adapting, growing and changing in accordance to these needs.
COVID has still impacted our services as our staff and volunteer team have been hit at various times throughout the year which has impacted us negatively in terms of managing our workload across our two sites (the Office/Pantry and the Pavilion/Garden), but we have persevered with little disruption to our frontline services.
Austerity is still biting, with our satellite foodbank being developed in partnership with Midlothian Trussel Trust Foodbank in response to the needs that are becoming even more profound within our community. Our Pantry has been well received and is being well used by people from all backgrounds which is helping to break down stigmas and encourage participation and support. Despite the financial climate, we have still been able to begin some income generating activities, with our room and garden hire, community café and pantry all helping us towards our goal of becoming self sustaining….eventually.
We are eternally grateful to our volunteer team who give so much of their time to our projects and without whom our services would not be as wide ranging or impactful.
As the new financial year dawns, we look forward to further developing the services we already provide and to starting new initiatives as they are identified and needed. We will be in a position of searching for further funding towards the end of next year, but are confident that our track record will enable this to happen. We are looking forward to continuing our work with and for the Community of Mayfield and Easthouses into the future, whatever that brings.
In the time since the year end, we have unfortunately lost our longstanding Chair, Pat O'Neill. Pat was a vital figure in the organisation and a key part of the infrastructure that held everything together. During his ill health, the trustees and management have all taken on additional duties to ensure the smooth running of the organisation especially with the unprecedented success of the new sites, and hope that they can continue on with his previous success. He will be greatly missed.
Overall income decreased in the year from £218,190 to £171,245.
Expenditure in the year increased from £127,224 to £210,909 which created an overall deficit of £39,664 (2021: surplus of £90,966).
The unrestricted funds incurred a deficit of £11,403 (2021: surplus of £12,610) and the fund at 31 March 2022 totalled £3.090 (2021: £21,993). The restricted funds incurred a deficit of £28,261 (2021: surplus of £78,356) . The restricted fund balance at 31 March 2022 was £94,009 (2021: £122,270) The Trustees continue to generate funds through activities and look for funding from external sources to be able to maintain the regeneration of the community through new projects.
The Trustees consider this to be satisfactory.
Reserves policy and going concern policy
The trustees are still working towards creating reserves of around £7,500 to enable us to cover running costs for approx. 3 months. We anticipate that this will be easier to achieve over the next couple of years as our income generation possibilities will increase with the development of the Pavilion and Community Garden.
Principal funding sources
The charity’s principal funding sources are grants from both public and private sources, particularly from Midlothian Council, Big Lottery, and Scottish Government Investing in Communities funds.
Risk Management
The Board maintains a register of risks. A risk assessment report is considered by the Board of Trustees on a minimum of a bi-annual basis and action is taken to limit and mitigate those risks accordingly.
Plans for Future Years
The trust plans to continue developing the services outlined above and undertake the following in line with our strategic aims:
Increase the activities of the Trusts income generation activities. We are planning to seek funding for an Enterprise Development Worker in the coming financial year, which will enable us to increase services and generate income for the Trust.
Further develop our community hub and garden to provide a vibrant space for support, learning and leisure that can be accessed, used and enjoyed by all in the community.
Continue to be responsive to the identified and articulated needs of the community we serve and work with the community, relevant partners, agencies and funders to meet these needs.
Continue to work with our In It Together partners to secure funding for a Masterplan for the Town Centre.
Develop our volunteers and increase volunteer opportunities.
Work to increase the knowledge and capacity of our staff team, to enable them to further develop and increase their ability and confidence to deal with change and growth within the community.
Background
Mayfield and Easthouses Development Trust (MAEDT) was set up in 2006 following extensive community consultation with the local communities of Mayfield and Easthouses in Midlothian.
Following the consultation, the community decided to set up a steering group, from which MAEDT was born. MAEDT was then made into a charity and a company limited by guarantee and we started to secure premises.
In 2007 we opened the doors of the MAEDT Centre and in 2008 we appointed our Development Worker to lead our staff team. Since then MAEDT has set up local services and projects to meet the needs of our local community. We aim to meet the Social, Economic, Cultural and Environmental needs of our community. MAEDT was set up by, is run by and works for the community to which we serve.
Governing Document
Mayfield and Easthouses Development Trust is a company limited by guarantee incorporated on 10 July 2007 and governed by its Memorandum and Articles of Association. It is registered as a charity with HM Revenue & Customs and OSCR.
The board of trustees administers the charity. The board meet a minimum of 8 times a year and provides strategic direction to the organisation.
Reference and Administrative Information
Charity registration number SC038325
Company registration number SC327502
Registered Office 14-15 Bogwood Court, Mayfield, Dalkeith, EH22 5DG
Our advisors
Independent Examiner Fiona E Haro, B Com (Hons), CA
Thomson Cooper Accountants 22 Stafford Street, Edinburgh, EH3 7BD
Bankers Royal Bank of Scotland plc, 63 High Street, Dalkeith
EH22 1JA
Directors and Trustees
The directors of the charitable company (the charity) are its trustees for the purpose of charity law. The trustees and officers serving during the year and since the year end were as follows:
Key management personnel Mayfield and Easthouses Development Trust: Trustees’ and Directors
Patricia Bowie
Patrick O'Neill (Chair) (deceased 7 November 2022)
Lynne Hood
Robert Hogg
Lynda Christison (appointed 10 November 2022)
Alasdair MacGregor (Chair) (appointed 10 November 2022)
Key management personnel:
Sharon Hill (secretary) Development worker
Appointment of Trustees
The trustees were elected from the membership of the Trust at the Annual General Meeting. Future election, retiral and re-election of Trustees will be carried out in accordance with the Memorandum and Articles of Association (paragraphs 51 – 58).
Trustee Training
Trustees have regular sessions on orientation to brief them on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association and the committee and decision making processes. The Trustees work with the business plan and funding strategy to take the organisation forward.
Related Parties
Sharon Hill currently receives a remuneration from the charity for her role as Development Worker. She was appointed as Secretary on 24 May 2016.
During the year, funds were received on behalf of Mayfield and Easthouses Park, a local charity, During prior years funds were received on behalf of Men's Shed, a local charity and Wellbeing Alliance Scotland, a national charity. The amount of £8,277 held on behalf of all charities (2021: £1,244) is held within other creditors.
The trustees, who are also the directors of Mayfield and Easthouses Development Trust for the purpose of company law, 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).
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 year.
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; and
- 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 adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company 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 Companies Act 2006. 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.
The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
The trustees' report was approved by the Board of Trustees.
I report on the financial statements of the charitable company for the year ended 31 March 2022, which are set out on pages 7 to 22.
The charitable company’s trustees, who are also the directors of Mayfield and Easthouses Development Trust 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 other than that disclosed below :
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 matters which have come to my attention are that, in the course of my examination of the accounting records of the charity, it was established that the records were incomplete. Supporting documentation in respect of various sources of income and expenditure were not available for examination. The financial records did not provide for appropriate accounting for fund balances. The Trustees are aware of these issues and the importance of maintaining full records of such transactions and are working towards putting in place appropriate financial records.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Mayfield and Easthouses Development Trust is a private company limited by guarantee incorporated in Scotland. The registered office is 14 - 15 Bogwood Court, Mayfield, Dalkeith, Edinburgh, Midlothian, EH22 5DG.
The financial statements have been prepared in accordance with the charitable company's Memorandum and 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 financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
At the date of approval of the accounts, the Trustees are aware of the impact on the charity of the Coronavirus. The trustees are actively taking all steps to mitigate any impact the virus has on the charity.
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.
Cash donations are recognised on receipt. Other donations are recognised once the charitable company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Expenditure is recognised on an accrual basis as a liability is incurred. The company is not registered for VAT and accordingly irrecoverable VAT is charged against the category of resources expended to which it relates.
Costs of generating funds are those costs incurred in attracting voluntary income and the costs incurred in trading activities that raise funds.
Charitable expenditure comprises those costs incurred by the charitable company in the delivery of its activities and services to its beneficiaries. It includes both the direct costs and indirect costs necessary to support these activities.
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charitable company and include the audit fees and costs linked to its strategic management.
Costs relating to a particular activity are allocated directly; others are apportioned on an appropriate basis e.g. estimated usage, staff costs by time spent.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
At each reporting end date, the charitable company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charitable company 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 charitable company's balance sheet when the charitable company 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 charitable company’s contractual obligations expire or are discharged or cancelled.
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 charitable company 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.
Legal status of the charity
The organisation is a charitable company limited by guarantee and has no share capital. In the event of the company being wound up each member is obliged to contribute an amount not exceeding £1.
Provision of Services to the Community
Provision of Services to the Community
Event costs
Travel & subsistence
Tools, tool hire & building costs
Training costs
Sessional staff
Café stock and equipment
Pantry Stock and equipment
Unauthorised transactions (note 18)
Provision of Services to the Community
Provision of Services to the Community
Premises and insurance
Direct allocation
Telephone and internet
Direct allocation
Postage and stationery
Direct allocation
Maintenance and sundries
Direct allocation
Interest paid
Direct allocation
Premises and insurance
Direct allocation
Postage and stationery
Direct allocation
Marketing
Direct allocation
Minibus expenses
Direct allocation
Maintenance and sundries
Direct allocation
Plant & machinery depreciation
Direct allocation
The average monthly number of employees during the year was:
The total employment benefits of key management personnel of the charity were £33,632.
The company currently holds funds for Men's Shed Midlothian, an organisation which supports community action, and has no responsibility for the funds’ ultimate application, as well as funds for Wellbeing Economy Alliance Scotland, a national charity, that will be distributed on completion of consultations. During the year, the charity also received funds on behalf of Easthouses Park Group that are to be held until a bank account has been set up for the organisation. Accordingly, these funds are not reflected in the company’s Statement of Financial Activities.
The movement on these funds were as follows:
Description, nature and purpose of Restricted Funds
Big Lottery
Funding for core staffing, running costs Year One funding includes Capital Refurbishment costs for renovations to the pavilion
Coalfields
Funding for High Street Covid Recovery and development of the Community Garden
Action Earth
Funding for development of the Community Garden to encourage and enable volunteering
Tesco Groundworks
Funding for development of our Pantry activities
Pockets and Prospects
Costs associated with our Community Pantry Activities – to be used as required by the organisation
Scottish Government
Funding for core activities, staffing and training
Berta McLaren Garden Fund
Legacy payment to enable development of the community garden and provision for the Beautiful Garden Competition
Midlothian Council Small Grant – Health
Gardening and walking equipment to enable development and delivery of activities which enable healthy and active lifestyles
Midlothian Council Rent Support
Rent support grant
Midlothian Council Large Grant
Core Activities – Staffing and running costs
Midlothian Council Small Grant – Poverty
Pantry set up costs and equipment for development of the School Uniform Bank
Strengthening Communities
Funding for a Full Time Volunteer Coordinator including training and development of staff and volunteers
Winter Flexible fund
Local Authority Covid Economic Recovery (LACER) funds to assist individuals with the cost of living crisis
Foundation Scotland
Creation of covered working space and other resources within the garden
Development Trusts Association Scotland
Funding for the implementation and development of the community food pantry
Cash for Kids
Help for families being adversely affected by the Cost of Living Crisis
Community Mental Health and Wellbeing fund (CMWH)
Staffing costs for projects and activities that increase a sense of wellbeing and improve overall mental health. Capital costs for Polycrub to enable gardening and wellbeing activities for people with multiple abilities throughout the year
Community Cooks
Continuation of the Hot Meals Midlothian funding, providing cooking skills and peer support activities around food and food access to the community
The income funds of the charity include the following general funds allocated as free reserves for no specific purpose and designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
The trustees have designated reserves of around £7,500 to cover running costs for approx. 3 months. This figure will continue to be assessed on an annual basis.
Unrestricted
Restricted
Unrestricted
Restricted
The management and Trustees brought to our attention that due to the unprecedented volume of transactions from the cafe and pantry, the systems in place for record keeping were unfortunately too basic and so some receipts were missing for cash expenses during the year. As there was no substantial back up for the transactions, these have been allocated as unauthorised in the charitable activities. The board has convened to discuss the matter and more robust controls have been put in place for recording transactions.
There were no disclosable related party transactions during the year (2021 - none).