The trustees present their annual 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 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 another challenging yet rewarding year for our Trust. We have continued to work with, support and be supported by an amazing network of organisations throughout Midlothian (and Scotland) and we would like to take this opportunity to thank everyone we work with – without joined up partnership work we would not have the impact we do. We are always keen to help and support other organisations and projects and are eternally grateful to the people who do the same for us.
Our Pantry has continued to be well received and used by our community. As the Cost of Living Crisis continues to bite, we have been fortunate enough to be one step ahead of the curve with the offering we have within our Trust. We have also been in the position to offer help to Central Dalkeith and Woodburn Pantry to set up in Woodburn. This is something we are very proud of. We are working with our partners to establish a Pantry Network to enable equitable sharing of resources and donations. Although our first application was unsuccessful, we are still working towards this goal.
Our partnership working has continued to strengthen and grow, which is testament to the great work that our Team are doing with and for our community.
The Pavilion and Café are thriving, with hundreds of people using the facility. We are happy with the positive changes we have been able to make. Customers and clients always comment on how nice the garden and pavilion are and how special it is to have this here, in our community. This is something we have been working to achieve for a very long time. We are very pleased to have created such a precious community asset in Mayfield and Easthouses.
During this year We have been able to make use of Long Term Unemployment Work funding which has enabled us to expand our service whilst supporting folks who have been out of work for a while. This has been very positive for us and for the two people who participated. This positive experience has given us the confidence to offer more work placements, for adults and young people, as well as expand the work we do with the Community Payback Team to offer meaningful placements for some of their clients.
On a personal level, we have experienced two great losses this year. Our Chair, Pat O’Neill passed away in November which is a loss that has been felt deeply by our team, and our Trust. Pat was a great Chair and a fantastic supporter of the work we do. We have lost someone very special.
In December we were also shaken by the sudden death of Ali Scott, one of our most active volunteers. Ali was a friend to us all and his death is a loss to our Trust.
In the face of our loss I had the privilege of being nominated as Chair and am working to do well in this role. I am pleased to be part of MAEDT and will work to ensure the positive and meaningful work we do continues.
Over this year, as our staff and volunteer team has grown, we have worked on tightening systems. This is something that will continue to adapt and change as our organisation does, but we are satisfied that the changes we are making will put us in good stead for the future.
As we look to the future we do have funding on our minds. While some of our funding streams have come to an end this year, we have managed to secure funding for a further 3 years from the National Lottery and 2.5 years from the UK Shared Prosperity fund. Added to the funding from the Community Mental Health and Wellbeing Fund and the Midlothian Council Large Grant, we are in a fortunate position for the foreseeable future, but we are well-aware that this time passes very quickly, so we do have an eye open for possible funding streams, whilst we work to ensure we are meeting the needs of our Community.
Despite the sadness and challenges of the year, it has been a successful one. This is all due to the hard work and dedication of our Staff and Volunteer Team, which continues to grow as our projects and services change and grow to meet the needs of the community and the people we serve.
Finally, I would like to thank our funders and supporters – you have stuck with us and funded our work when we had no more than an idea and a rough plan of how we would like to be. That has paid off immensely as we have become more established and our Community has become more and more involved over the years. Thank you for having faith in our vision and for recognising our potential. We really couldn’t have done this without you all!
Overall income increased in the year from £171,245 to £326,041.
Expenditure in the year increased from £210,909 to £273,114,however there was still an overall surplus of £52,814 (2022: deficit of £39,664).
The unrestricted funds incurred a surplus of £59,389 (2022: deficit of £11,403 ) and the fund at 31 March 2023 totalled £59,389 (2022: £3,090). The restricted funds incurred a deficit of £6,575 (2022: deficit of £28,261) . The restricted fund balance at 31 March 2023 was £87,434 (2022: £94,009) 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:
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 Easthouses Memorial Group, Kidz United, Passionate About the Park Group, and Woodburn Pantry, all local charities, During prior years funds were received on behalf of Men's Shed and Mayfield and Easthouses Park, both local charities. The amount of £14,112 held on behalf of all charities (2022: £8,277) 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; 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 2023, which are set out on pages 7 to 25.
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.
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.
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.
Cafe and pantry income
Room hire
Provision of Services to the Community
Provision of Services to the Community
Event costs
Travel & subsistence
Tools, tool hire & building costs
Training costs
Community purchases
Sessional staff
Café stock and equipment
Pantry Stock and equipment
Unauthorised transactions (note 20)
Provision of Services to the Community
Premises and insurance
Direct allocation
Telephone and internet
Direct allocation
Postage and stationery
Direct allocation
Marketing
Direct allocation
Minibus expenses
Direct allocation
Maintenance and sundries
Direct allocation
Plant & machinery depreciation
Direct allocation
Interest paid
Direct allocation
Equipment
Legal, Professional & Marketing
Premises and insurance
Direct allocation
Telephone and internet
Direct allocation
Postage and stationery
Direct allocation
Maintenance and sundries
Direct allocation
Interest paid
Direct allocation
The average monthly number of employees during the year was:
The total employment benefits of key management personnel of the charity were £40,629 (2022: £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, Easthouses Memorial group which is a small group of people who maintain the War Memorial in Easthouses,Easthouses Park/ Passionate About the Park Group which is a group of community activists who are raising funds to help purchase equipment for Easthouses Park, Kidz United which is a small, newly formed charity that is awaiting a bank account being opened. These are all either charities or small community groups that operate within Mayfield and Easthouses. Accordingly, these funds are not reflected in the company’s Statement of Financial Activites.
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 Garden – 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
Project work and running costs
Strengthening Communities
Funding for a Full Time Volunteer Coordinator including training and development of staff and volunteers along with running costs
LACER Fund (Previously 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 and running costs
Development Trusts Association Scotland
Funding for staffing costs and general running costs
Cash for Kids
Help for families being adversely affected by the Cost of Living Crisis
Community Mental Health and Wellbeing fund (CMHW)
Staffing costs for projects and activities that increase a sense of wellbeing and improve overall mental health.
Community Cooks
Continuation of the Hot Meals Midlothian funding, providing cooking skills and peer support activities around food and food access to the community
NHS Lothian, Green Prescribing
Volunteer Expenses and costs associated with providing a safe and welcoming environment for volunteers
Long Term Unemployment
Enabling employment and support of individuals experiencing long term unemployment
LACER Foods
Local Authority Covid Economic Recovery funds to purchase stock for Pantry
Cycling Scotland
Resources, staffing and training
UK Shared Prosperity Funding (UKSPF)
Staffing and Core Costs
Midlothian Council – Van Purchase
Van purchased for Pantry and organisation use.
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 during the preparation of the prior year accounts in 2022 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 were allocated as unauthorised in the charitable activities and can be seen in the comparatives figure in note 7. The board convened to discuss the matter and more robust controls were put in place for recording transactions in the current year and going forward.
There were no disclosable related party transactions during the year (2022 - none).