## The Counselling Foundation Annual Report and Accounts 2020
Registered office and principal office:
1 College Yard Lower Dagnall Street St Albans AL3 4PA
A private company limited by guarantee Charity No. 1014988 Company No. 02713806 (England & Wales)
www.counsellingfoundation.org
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## **Trustees**
Julian Gell, BSc (Chair)
Frances Bogie
Sue Murphy
Mandy Macqueen, BSc (Hons)
Wendy Molefi-Youri BM, MRCGP, DRCOG, DFSRH, MSt. MBCT
## **Executive Committee**
Emma Branch – from November 2020
Stephen Anstee Mark Graham – from June 2021
Mimie Hollist Sonja Hutchinson – from June 2021
Tracy McPhillips Jo Spilling – from April 2020
## **Advisors**
Auditors Mercer & Hole Chartered Accountants and Registered Auditors 72 London Road, St Albans, Hertfordshire, AL1 1NS
Bankers Barclays Bank plc St Peter’s Street, St Albans AL1 3LP
CAF Bank Limited 25 Kings Hill Avenue, Kings Hill, West Malling, Kent ME19 4JQ
www.counsellingfoundation.org
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## **Offices & Centres**
## **BEDFORD CENTRE**
58 Tavistock Street Bedford MK40 2RD 01234 346077 bedford@counsellingfoundation.org
## **STEVENAGE CENTRE**
Springfield House Community Centre 24 High Street Stevenage SG1 3EJ 01438 357775 stevenage@counsellingfoundation.org
## **BROXBOURNE CENTRE**
Bishops College Churchgate Cheshunt Waltham Cross EN8 9XA 01992 637285 broxbourne@counsellingfoundation.org
## **ST ALBANS CENTRE**
1 College Yard Lower Dagnall Street St Albans AL3 4PA 01727 856693 stalbans@counsellingfoundation.org
## **LUTON CENTRE**
Hilde Eccles House 70-72 Princess Street Luton LU1 5AT 01582 732450 luton@counsellingfoundation.org
**FOUNDATION OFFICE & TRAINING CENTRE**
1 College Yard Lower Dagnall Street St Albans AL3 4PA 01727 868585 foundation@counsellingfoundation.org training@counsellingfoundation.org
## **Glossary of selected terms**
**Term Definition**
Foundation or Company
The Counselling Foundation
Open-ended counselling
The general counselling service provided by the Foundation on an open-ended, i.e. continuing, basis
BACP
British Association for Counselling and Psychotherapy
IAPT
An NHS programme for “Improving Access to Psychological Therapies”
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## **STATEMENT FROM THE CHAIR**
In common with many other organisations during 2020 The Counselling Foundation faced the huge challenges of the unfolding COVID crisis. It is a huge testament to our team, their adaptability and creativity, and the resilience of our model that we were able to adapt rapidly and seamlessly to a new situation where all counselling and training was moved from face to face to an online mode.
Initially there was some fall off in counselling volumes and as we looked forward during the early months of 2020, we were faced with the threat that our counselling volumes and training recruitment could be at serious risk. I am pleased to say that as 2020 progressed the Foundation came through these challenges with an exceptional financial and operational result. During the year we successfully established new operating models which we believe will transform what we can offer clients and students. In many ways we and they have actually benefitted from the rethinking we have needed to do as we have adapted to this new world.
Besides these events, over the period of 2020 we saw a change in our leadership. Our CEO for the previous nine years, Robert Cuming, decided that this was the right time for him to move on. That decision on his part was taken in late 2019 and before the COVID situation hit. As it did so Robert committed to remain with us to see us safely through the first changes we needed to make and until we were in a position to find and appoint a successor with the skills needed to take over and start the task of building us into the post-COVID phase.
We were hugely lucky to have one of our trustees, Emma Branch, express her wish to take on this mission as Robert’s successor. Given the situation it was ideal to have Emma step into this role with her background knowledge of The Foundation already in place. The transition in leadership between November 2020 into the New Year 2021 went seamlessly and Emma has powered ahead at pace engaging our team in building on Robert’s achievements and our new future. Both have been supported by an exceptional team at every level.
Both Robert and Emma are the highest quality leaders we could possibly have hoped to have had over their respective tenures and I am immensely grateful to them both. A great deal has been learnt and achieved over this period and we have entered 2021 with a real confidence in our future. We have weathered the storm. We remain a key community asset. We are ready to move ahead on a solid and exciting base of new capability and opportunity.
Finally, with the Foundation poised as it now is, and after ten years as a trustee, I feel now is the right time for me to move on and make way and I will be doing so during the final quarter of 2021. It has been a huge privilege to have been a part of this unique charity and I want to thank everyone I have worked with for their support and friendship, and for their passionate commitment to our continuing mission.
## **Julian Gell, Chair**
www.counsellingfoundation.org
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## **STATEMENT FROM THE CEO**
During the last year The Counselling Foundation like other organisations had to put aside plans and face into the reality of the COVID situation as it unfolded throughout the financial year. Everyone at the organisation had to face huge challenges and first as a Trustee and then as CEO I was inspired by the way everyone at the organisation – employees, students, partners and clients – faced into these.
The unprecedented circumstances of the last year have demonstrated the vital importance of the service we provide to the community both in terms of the counselling we deliver and the training services that our students experience.
Covid has changed the counselling sector permanently and the way we began and continued to work throughout 2020 reflects this shift. Our immediate priority at the onset of the crisis was the safety of all who engage with us and the organisation quickly adapted to a remote model of working. Both counselling and training were delivered on-line throughout the rest of 2020 and a blended approach to services will be a permanent part of our strategy moving forwards.
We found ways to make this remote model work providing reassurance to our clients that counselling provided on-line or by phone was just an effective way of support as the in-person way of working they had been used to and our counsellors provided stability and support to our service users throughout. Our counsellors and clients learnt how to develop meaningful relationships over an online platform and we adapted our processes to accommodate management of this.
Our student and teaching faculty also adapted quickly to learning via remote methods and found inventive ways to make use of the on-line platform and be able to retain an enjoyment for learning through this medium. Some of our students had never met in person and remained able to form relationships with both each other and the teaching team and learn to work in a different way to those historically learnt by the counselling profession. We are excited that the 2020 cohort of students will be the first cohort who fall within the BACP course accreditation guidance for both on-line and in person work. Equally these new ways of working have enabled us to support clients who previously were unable to access our services – either living in a remote area where services weren’t available in person or struggling with challenges such as inability to travel.
Looking forwards our focus will be on embedding this new hybrid way of delivering services and training and this means investing in the platforms that will enable this mode of working to be stable. This means that 2021 will very much be about investment in our technology, people, counselling services and training to enable our services to be provided to a wider audience and at the same level of quality that The Counselling Foundation is known for.
I am excited about the year to come and building on the opportunities that the unprecedented and dreadful circumstances of the Covid pandemic have presented to the organisation.
## **Emma Branch, CEO**
www.counsellingfoundation.org
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## **TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2020**
The Trustees present their annual report with the accounts of the Company for the year ended 31 December 2020. This report includes the directors’ report as required by company law.
## **Objectives and Activities**
The Foundations’ objects under its Articles of Association are stated as follows:
_1. Relief of suffering from mental or emotional difficulties by the provision of therapeutic counselling_
_2. Education and training of persons in the practice of therapeutic counselling_
_3. Promotion of better mental health and psychological well-being_
To further these legal objectives, our aim is to provide people with access to subsidised counselling that may not be available elsewhere in our communities in Hertfordshire and Bedfordshire. In addition, our counselling training promotes personal development and growth whilst supporting the community through the training of counsellors qualified to provide a talking therapy. As well as contributing to individuals’ wellbeing and providing trained counsellors, our activities are intended to enhance awareness and understanding of mental health.
During the year, we met our objectives primarily though the provision of the following main activities:
## • **Counselling**
Our charitable ethos is to offer counselling including at a subsidised cost to those in need and this is a key activity for us for the public benefit. As well as remotely delivery since the start of the Covid restrictions, we continue to have our counselling centres in Bedford, Broxbourne, Luton, St Albans and Stevenage. We sometimes refer to this activity as openended counselling, reflecting the often-long term nature of the counselling service provided.
## • **NHS counselling**
We work under contracts or sub-contracts with the NHS to provide short-term counselling to patients referred by GP surgeries. Historically based at our counselling centres in Hertfordshire and Bedfordshire, the majority of sessions have been delivered remotely in 2020 and into 2021, in the light of Covid restrictions.
- **Training**
- In addition, we offer training courses to people who wish to become professionally qualified in counselling. These run from Certificate to Diploma and Advanced Diploma level. A key attraction of our training in Herts and Beds is the opportunity to access supervised placements which enables trainee counsellors to acquire the client hours necessary for their counselling qualifications. Training is mainly organised from our Bedford, Luton and St Albans centres, and has largely been delivered remotely during the
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Covid pandemic. Although we have also provided courses based in London in recent years, we do not plan to do so on a face-to-face basis going forward, allowing us to focus on our core locations.
We are an organisational member of the British Association for Counselling and Psychotherapy (BACP). Our Diploma and Advanced Diploma courses are accredited by BACP so that successful completion of these by our students, plus the necessary experience, enables them to become members of BACP.
## **Response to COVID-19**
We have historically provided our counselling and training services face-to-face, from our centres and other locations. Given the impact of COVID-19 in March and April 2020, we worked rapidly over a few weeks to be able to provide our services remotely. Since early April 2020, we have provided remote counselling, by telephone or video, both to the public and under our NHS contracts. In addition, we commenced delivery of our training online as the new term started in April 2020. During subsequent months, we also moved to delivering online our Introduction to Counselling courses and our Open Days for those interested in our training courses.
With our offices closed or operating at reduced levels for much of 2020, our staff have worked hard to maintain our services and operations remotely. We are at present operating a hybrid model, combining some remote and some face to face in Centre working and will continue to review the options.
Whilst we are pleased by the number of our clients who have adopted remote counselling, we inevitably lost some counselling sessions as a result of the impact of COVID-19, as remote working does not suit all clients.
In our training service, we provide annual training courses each year based on an academic year from September. One of the strengths is that the many of our students progress from one year to the next as part of a 4-year training. We have been encouraged by the level of applications for our training courses for the 2020/21 academic year and for the forthcoming 2021/22 academic year.
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## **Achievement and Performance**
## **Counselling**
The Foundation delivered counselling sessions under its own open-ended service and under contracts or sub-contracts for the NHS, as follows:
||**Number of Counselling**|**Number of Counselling**|
|---|---|---|
||**sessions delivered 2020**|**sessions delivered 2019**|
|Bedford|1,262|1,714|
|Broxbourne|1,409|1,836|
|Luton|2,074|2,069|
|St Albans|4,068|3,992|
|Stevenage|1,512|2,054|
|Counselling|10,325|11,665|
|NHS|11,836|13,131|
|Other|1,308|462|
|Total counselling|23,469|25,258|
Although largely delivered remotely during Covid impacted 2020, the Foundation has continued to maintain its Centre infrastructure and organise and administer its counselling based on its centres.
## **Counselling**
Although we typically have up to 300 clients in our counselling service, many at subsidised rates, these numbers dropped to nearer 200 with the initial impact of Covid. Client numbers started to recover over 2020 and continue to do so into 2021 to date. We introduced a new framework for our charges during 2019 and have refined this with a revised scale of charges from April 2021 including subsidised counselling.
## **NHS counselling service**
The Foundation provides short-term counselling to patients referred under the NHS. Income for these services is generated by charges to the NHS based on a rate per counselling session.
## **NHS counselling in Hertfordshire**
With limits on the availability of the IAPT trained counsellors that the contract requires, the volume decreases that we experienced in 2019 continued in 2020 and into 2021. Although the number of providers on the contract has now increased, we successfully participated in the tender at the end of 2020 for the new NHS Hertfordshire contract.
## **NHS counselling in Bedfordshire**
The contract for the delivery of short-term counselling covering north Bedfordshire was extended in March 2019 for two years and has been extended again in 2021 on a short-term basis, pending a tender.
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## **Other counselling services**
In addition, we provide a number of other counselling services, including support for victims of crime and other groups in Bedfordshire and an Employee Assistance Programme Service to certain organisations.
## **Training**
The Foundation provides a programme of counselling training courses – starting with the Certificate and progressing through Diploma and Advanced Diploma. The Training service has proved a stable service in terms of the number of trainees and provides some continuity with a proportion of trainees continuing from one course to the next.
In addition, the Foundation provides short term Introduction to Counselling courses, typically covering 4 to 6 weeks. The Introduction to Counselling course provides an insight for clients with an interest in counselling. These Introduction courses have proved successful with remote delivery during the Covid restrictions, including into 2021.
|**Student numbers**|**Autumn 2020**|**Autumn 2019**|**Autumn 2018**||
|---|---|---|---|---|
|Annual courses:|||||
|Certificate in Psychodynamic
Counselling Skills|101|99|86||
|Diploma in Psychodynamic
Counselling|67|65|67||
|Advanced Diploma in
Psychodynamic Counselling|32|33|32||
|Totals|200|197|185||
Income from Training comprises principally fees for each course. For the longer courses, covering an academic year, the course fees are payable either by an initial deposit and then instalments or in full prior to the start of the course. In addition, income is generated from training placements.
The Training service fulfils the charity mission of providing education, whilst also contributing financially to the infrastructure for our counselling services. In addition, our trainees undertake supervised placements in our counselling service - supporting counselling clients while building their professional skills. The Training service promotes personal development and growth, including communication skills in personal or professional lives, whilst supporting communities through the development of qualified counsellors able to provide a talking therapy.
We previously identified south-east London as an area to explore to develop our training provision. During 2019, we ran a number of Introduction to Counselling courses in London and we launched our one-year Foundation Certificate course in London for the first time in
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Autumn 2019. Having considered it during the Covid restrictions, we do not propose to provide face to face training courses in London going forward.
## **Donations, Grants and other income**
Whilst the principal funding sources of the charity are from the services that it provides, the Foundation’s income also benefits from donations, grants and fundraising – we are grateful to providers of these funds.
## **Financial Review**
## **Financial out-turn**
The Foundation reported net income for the year ended 31 December 2020, following a deficit in 2019 and a significant underlying deficit in the 2018 period and this is a helpful step in enhancing our financial sustainability.
||Year ended
31 December 2020
Total funds
£’000
Restated
Year ended
31 December 2019
Total funds
£’000|
|---|---|
|Donations and grants|35.4
40.2|
|Training and counselling income|1,602.4
1,467.2|
|Other income|10.6
14.3|
|Total income|1,648.4
1,521.7|
|Expenditure|(1,496.8)
(1,584.4)|
|Net income, all funds|151.6
(62.7)|
|Less restricted funds surplus|(10.5)
(5.1)|
|Net income, unrestricted funds|141.1
(67.8)|
|Transfer to designated funds|(100.0)
-|
|Movement in general funds|41.1
(67.8)|
For the purposes of the financial statements for the year end 31 December 2020, the Foundation has changed its accounting policy for the recognition of income on its annual training courses, detailed of which are provided in the notes to the financial statements. The amounts relating to the year ended 31 December 2019 set out in this report have been restated to reflect that change.
Although NHS counselling volumes in Hertfordshire were lower, the Foundation benefitted from enhancing Training income, including from Introduction to Counselling courses, favourable volumes on its Bedfordshire NHS and similar work, improving operating margins and cost measures. During 2020, the Foundation focused its face-to-face locations on its longstanding 5 main Centres for ongoing delivery and support for its counselling. As a result, during 2020, the Bedford Centre moved to a new location, the previous two Stevenage sites
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were combined into one and rentals were ceased in a number of locations used mainly for NHS delivery.
The net income recorded in 2020 helps replenish the Foundation’s finances following previous periods of unfavourable underlying financial results and will also assist the Foundation in investing in its infrastructure and its services to its communities. For the year ended 31 December 2020, the Foundation has transferred most of its net income to designated funds for the enhancement of its IT and technology plus for the repair, maintenance and improvement of existing properties and to support future potential property acquisitions.
## **Balance sheet**
The Foundation’s balance sheet includes tangible fixed assets with a net book value at 31 December 2020 of £433.8k, relating predominantly to freehold and long-leasehold properties. Debtors totaling £206.9k at 31 December 2020 mainly relate to training course fees being settled by instalments and amounts due in relation to counselling. Cash at 31 December 2020 was £711.6k. Creditors (due within one year) of £738.4k at 31 December 2020 include deferred income of £546.2k, the majority in relation to training courses to be released as income over the remainder of the academic year to August 2021. The Foundation has a £24.5k bank loan secured on its leasehold properties. Net assets at 31 December 2020 were £595.0k.
## **Funds**
Like many charities, the Foundation holds unrestricted and restricted funds. Restricted income/funds are those to be used for specific purposes as laid down by the donor or otherwise, with expenditure which meets these criteria charged to the restricted funds. Unrestricted funds can be split, at the discretion of the trustees, between general and designated funds (the latter being those that the Trustees elect to earmark for specific purposes). Of the Foundation’s total funds, the majority are held as unrestricted:
||**31 December 2020**
**£’000**
**Restated**
**31 December 2019**
**£’000**|
|---|---|
|||
|Restricted reserves|162.1
151.6|
|Unrestricted reserves||
|Designated funds|100.0
-|
|General funds|332.9
291.8|
|Unrestricted reserves|432.9
291.8|
|||
|Total funds|595.0
443.4|
The restricted reserves comprise long-standing restricted reserves of £133.7k, raised many years ago to part fund the purchase of some of the Foundation’s properties (of which £54.4k
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is currently held in cash), and £28.4k arising from restricted grant and other income (net of related expenditure to date). The designated funds relate to funds for the enhancement of the Foundation’s IT and technology plus for the repair, maintenance and improvement of existing properties and to support future property acquisitions.
## **Financial Reserves**
The Foundation holds financial reserves in order to aid the proper management of its financial affairs in an orderly manner and to provide financial resources on which to draw in the event of unforeseen events or variances that may arise.
A common measure of financial resilience in the charity sector is to compare the level of financial reserves with monthly expenditure, with a 2018 survey published by Third Sector of 157 leading charities reporting that they held on average 4 months expenditure in reserves. The appropriate level of reserves is a matter for each charity, recognising its activities and circumstance. The unrestricted funds (including designated funds), which are available to further any of the charity’s purposes, stood at £432.9k at 31 December, which represented approximately 3.5 times the Foundation’s average monthly expenditure in the year ended 31 December 2020, not far short of the level indicated by the Third Sector survey.
The Board is conscious, however, that a substantial proportion of the Foundation’s assets which make up these unrestricted funds are held in the form of property, used in the delivery of the Foundation’s services and therefore not readily or immediately realisable to fund any financial requirements in the short-term. As at 31 December 2020, cash balances stood at £711.6 of which unrestricted cash balances (including designated funds) were £589.4k, the latter representing 4.7 times the Foundation’s average monthly expenditure in the year ended 31 December 2020. However, these cash balances largely represent deferred revenue to be released over the subsequent year and are not generally therefore surplus funds. Net current assets, which are stated after deducting deferred revenue and might be a better indicator of potentially surplus more readily realisable assets, were £180.1k at 31 December 2020, which represents 1.4 times the Foundation’s average monthly expenditure in the year ended 31 December 2020.
Holding cash balances also helps the Foundation to address monthly fluctuations and variances and its seasonal cash flow cycle. Cash balances are typically lowest in the Spring, before cash inflows in the Summer in the run-up to the new academic training year, as applicants for the training courses apply for and accept places. Though many of the Foundation’s costs are relatively fixed in nature, it is helpful that it is not substantially reliant on donations or fundraising.
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## **Going concern**
The Board considers it appropriate to apply the going concern basis to the preparation of these annual financial statements, having regard to the following factors:
- The Foundation has weathered the initial impact of COVID-19 and successfully introduced remote delivery of it counselling and training services, and managed its costs
- Unaudited accounting records in 2021 so far indicate that the Foundation has recorded a satisfactory financial outcome for the year to date
- The Foundation’s current cash balances are also satisfactory having regard to previous years’ patterns
- Internal financial projections for the remainder of 2021 and into 2021, whilst inevitably subject to the uncertainties inherent in all financial forecasting, provide an appropriate support for the going concern basis for these financial statements.
## **Plans**
The Foundation believes that there is ongoing demand in society for its training and counselling services and views the future positively. It aims to continue to deliver its charitable mission to provide counselling and counselling training, whilst enhancing financial sustainability.
The Foundation plans to continue to seek to improve the structures and processes in its counselling service and explore ways to enhance the service. There are also plans to enhance technology infrastructure in order for the Foundation to better operate in today’s environment. The Foundation will continue to monitor the ongoing impact of the COVID-19 environment and the way in which it delivers services and organises its operations.
## **Structure, Governance and Management**
The Counselling Foundation is registered as a charity and is constituted as a company limited by guarantee. It was incorporated on 12 May 1992 under a Memorandum of Association. The governing document is the Articles of Association. Its company number is 02713806 (England & Wales) and its charity number is 1014988.
The Memorandum and Articles of Association were replaced during 2018 by new Articles which are simplified and comply in detail with the Charity Commission’s Model Articles for charities set up in this form. Under the new Articles the Board of the company is its governing body. Those appointed to the Board are the Trustees in charity law and the Directors in company law. The Company’s Members are the appointed Board. The Trustees confirm that
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during the year the charity has had due regard to the Charity Commission’s guidance on public benefit.
Potential trustees are identified and recruited by a recruitment and assessment process. The Foundation has the aim that trustees have a range of experience and skills represented together with, so far as is possible, a balanced gender and ethnic mix reflective of our communities. New trustees are briefed on the Foundation’s activities and their role in the Board in discussions with other trustees and the Foundation’s management. All the trustees are volunteers and receive no remuneration or any other benefit.
Those serving as trustees at the date of this report and during 2020 are:
- Julian Gell
- Mandy Macqueen
- Wendy Molefi-Youri
- Sue Murphy
- Frances Bogie
- Richard Lane
- Thomas Smith
- Appointed 2[nd] February 2021 Appointed 2[nd] February 2021 Appointed 2[nd] February 2021, resigned 20[th] April 2021 Resigned 2[nd] February 2021
- Emma Branch Resigned 31 October 2020 and became CEO 1 November 2020
- • Martin Taylor Resigned 19[th] August 2020 • Philip Needham Resigned 7th April 2020
Matters reserved for decision by the Board include strategy, annual budgets and the appointment and remuneration of the Chief Executive.
The Board delegates management of the Foundation to the Chief Executive, who is supported by members of the Executive with responsibility for specific areas, as follows:
- Emma Branch (CEO) from 1[st] November 2020 (previously Robert Cuming)
- Jo Spilling (Clinical Director) from April 2020 (previously Noel Hargrave)
- Tracy McPhillips (Head of Operations)
- Mimie Hollist (Head of Training)
- Stephen Anstee (Head of Finance)
- Mark Graham (Director of IT and Digital Services), since June 2021
- Sonja Hutchinson (Head of Projects), since June 2021
- Becci Murtagh (Head of Marketing) until June 2021
Board meetings are usually held every two months and are attended by the Chief Executive and from time-to-time other members of staff as deemed appropriate by the Board. In addition, a Trustee regularly attends monthly management meetings regarding clinical matters. During 2019, meetings of a Finance, Governance & Risk committee recommenced. The Board receives regular reports from the Executive, including operational and financial
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reports. In addition, Trustees attend strategy days during the year.
## **Remuneration of management**
The aim of the Charity’s remuneration policy is to attract and retain motivated management with the skills and experience to deliver the charity’s objectives, whilst having due regard to the interests of our beneficiaries and financial sustainability.
Remuneration for the year ended 31 December 2020 comprised salary and pension contributions. The total remuneration of the senior management was £210.8k (£198.5k for year ended 31 December 2019). The Foundation generally aims to carry out an annual review of pay, taking into account annual performance appraisals, though deferred doing so in 2019 and 2020 given financial out-turns. The Foundation seeks to provide a flexible working environment with most of its employees engaged on a part-time basis. It has an Employee Assistance Programme, available to staff. The Foundation is immensely grateful to management and staff for their dedicated service to the public benefit that the Foundation delivers.
## **Risk Management**
The Board has examined the major risks to which the Foundation may be exposed and is taking reasonable steps to establish systems to mitigate those risks. The Foundation maintains and regularly reviews a log of key risks. This includes operational, financial, people and clinical risks. The Foundation maintains insurance cover.
## **Role and Responsibilities of the Board**
The Board is responsible for overall strategy; ensuring that the objects of the company are properly pursued and that its financial affairs are properly managed.
The Board is responsible for preparing the annual report and financial statements for each financial year in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. Company Law requires the members of the Board to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the company and of its incoming resources and application of resources, including income and expenditure for that year. In preparing those financial statements, the members of the Board are required to:
1. Select suitable accounting policies and then apply them consistently
2. Make judgments and estimates that are reasonable and prudent
3. Prepare the financial statements on the going concern basis unless it is inappropriate to assume that the company will continue in business.
The members of the Board are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company
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and to enable them to ensure that the financial statements comply with 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 of and detection of fraud and other irregularities.
## **Legal and Administrative Details**
Legal and administrative details are given elsewhere in this report.
## **Auditors**
Our auditors, Mercer & Hole, have expressed their willingness to continue in that capacity.
## **Disclosure of Information to Auditors**
So far as the Board is aware, there is no relevant audit information of which the company’s auditors are unaware. The Board has taken all the steps that they ought to have taken in order to make themselves aware of any relevant audit information and to establish that the company’s auditors are aware of the information.
## _**On behalf of the Board**_
**Julian Gell, Chair** _**Date: 27 September 2021**_
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## Report of the Independent Auditors to the Members of The Counselling Foundation for the year ended 31 December 2020
## **Independent Auditor’s Report to the Trustees of The Counselling Foundation for the year ended 31 December 2020.**
## **Opinion**
We have audited the financial statements of The Counselling Foundation (the ‘charity’) for the year ended 31 December 2020 which comprise which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including 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 charity’s affairs as at 31 December 2020, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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.
## **Conclusions relating to going concern**
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.
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## Report of the Independent Auditors to the Members of The Counselling Foundation for the year ended 31 December 2020 - continued
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 trustees 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, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 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 the charity has not kept adequate accounting records; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
www.counsellingfoundation.org
2020 Annual Report
18
## Report of the Independent Auditors to the Members of The Counselling Foundation for the year ended 31 December 2020 - continued
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement set out on pages 14 to 15, the trustees 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 charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.
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.
## **Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud**
We gained an understanding of the legal and regulatory framework applicable to the charity and the environment in which it operates and considered the risk of acts by the charity that were contrary to applicable laws and regulations, including fraud.
www.counsellingfoundation.org
2020 Annual Report
19
## Report of the Independent Auditors to the Members of The Counselling Foundation for the year ended 31 December 2020 - continued
We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements and the financial report (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate entries including journals to overstate revenue or understate expenditure and management bias in accounting estimates.
Audit procedures performed by the engagement team included:
- discussions with management, including considerations of known or suspected instances of non- compliance with laws and regulations and fraud;
- gaining an understanding of management's controls designed to prevent and detect irregularities; and
- identifying and testing journal entries.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-andassurance/Standards-andguidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-foraudit/Description-of-auditors-responsibilities-foraudit.aspx. 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 Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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 auditor’s 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.
www.counsellingfoundation.org
2020 Annual Report
20
Report of the Independent Auditors to the Members of The Counselling Foundation for the year ended 31 December 2020 - continued
Steve Robinson: Senior Statutory Auditor for and on behalf of Mercer & Hole Chartered Accountants and Registered Auditors Gloucester House, 72 London Road, St Albans, Hertfordshire, AL1 1NS
Date: 28 September 2021
www.counsellingfoundation.org
2020 Annual Report
21
## The Counselling Foundation Statement of Financial Activities (incuding Income and Expenditure Account) For the year ended 31 December 2020
|Notes
**Income from:**
Donations and grants
3
Charitable activities:
Training and counselling
4
Other income
5
**Total income**
**Expenditure on:**
Charitable activities:
Training and counselling
**Total expenditure**
6
**Net income for the year**
7
Transfers between funds
**Net Movement in Funds**
**Funds at start of year**
**Funds at end of year**|**Unrestricted**
**funds**
**General**
**Funds**
**2020**
**£’000**
**Unrestricted**
**funds**
**Designated**
**funds**
**2020**
**£’000**
**Restricted**
**Funds**
**2020**
**£’000**
**Total**
**Funds**
**2020**
**£’000**
5.8
-
29.6
35.4
1,550.2
-
52.2
1,602.4
10.6
-
-
10.6
1,566.6
-
81.8
1,648.4
1,425.5
-
71.3
1,496.8
1,425.5
-
71.3
1,496.8
141.1
-
10.5
151.6
(100.0)
100.0
-
-
41.1
100.0
10.5
151.6
291.8
-
151.6
443.4
332.9
100.0
162.1
595.0|**Restated**
**Total**
**Funds**
**2019**
**£’000**|
|---|---|---|
|||40.2
1,467.2
14.3|
|||1,521.7|
|||1,584.4|
|||1,584.4|
|||(62.7)
-
(62.7)
506.1
443.4|
Movements in funds are disclosed in the notes to the financial statements.
www.counsellingfoundation.org
2020 Annual Report
22
## The Counselling Foundation Balance Sheet At 31 December 2020
he
|Notes
**Fixed Assets**
Tangible assets
10
**Current assets**
Debtors
11
Cash at bank and in hand
**Liabilities**
Creditors: amounts falling due
within one year
12
**Net current assets**
**Total assets less current**
**liabilities**
**Creditors: amounts falling due**
**after more than one year**
13
**Net assets**
**Funds of the charity**
**Restricted funds**
**General funds**
**Designated funds**
**Unrestricted funds**
**Total charity funds**
14&15|**31 December 2020**
**£’000**
**£’000**
433.8
206.9
711.6
918.5
(738.4)
180.1
613.9
(18.9)
595.0
162.1
332.9
100.0
432.9
595.0|**Restated**
**31 December 2019**
**£’000**
**£’000**|**Restated**
**31 December 2019**
**£’000**
**£’000**|
|---|---|---|---|
||206.9
711.6|160.4
495.3|450.8
16.7|
||918.5
(738.4)|655.7
(639.0)||
||332.9
100.0|291.8
-||
||||467.5
(24.1)|
||||443.4|
||||151.6
291.8|
|||||
||||443.4|
On behalf of the Board, which approved the accounts on 27 September 2021
Julian Gell, Director
Date 27 September 2021 Company Number: 02713806
www.counsellingfoundation.org
2020 Annual Report
23
## The Counselling Foundation Cash Flow Statement For the year ended 31 December 2020
|**2020**
Note
**£’000**
**£’000**
**Cash flows from Operating Activities**
A
221.0
**Cash flows from Investing Activities**
Interest income
0.9
Payments to acquire tangible assets
-
**Cash from/used in Investing**
**Activities**
0.9
**Cash flows from Financing Activities**
Movement in borrowing
(5.6)
**Cash used in Financing Activities**
(5.6)
**Change in cash and cash equivalents**
**in the year**
216.3
Cash and cash equivalents at the
beginning of the year
495.3
**Cash and cash equivalents at the end**
**of the year**
711.6
Of the cash and cash equivalents at 31 December, the following amounts ar
Restricted reserves
122.2
Unrestricted funds
General funds
489.4
Designated funds
100.0
**Cash and cash equivalents at the**
**end of the year**
711.6|**£’000**|**Restated**
**2019**
**£’000**|
|---|---|---|
||1.1
(5.8)|168.9
(4.7)
(6.8)|
||(6.8)||
|||157.4
337.9|
|||495.3|
www.counsellingfoundation.org
2020 Annual Report
24
## The Counselling Foundation Cash Flow Statement For the year ended 31 December 2020
## **NOTE TO THE CASH FLOW STATEMENT**
- **A. Reconciliation of net movements in funds to net cash flow from operating activities**
|**Net movement in funds, as shown**
**in Statement of Financial Activities**
Non-operating cash flows
eliminated:
Depreciation charge
Interest income
Decrease/(increase) in debtors
(Decrease)/increase in creditors
**Net cash (absorbed)/generated by**
**operating activities**|**£’000**|**2020**
**£’000**
151.6
16.1
(46.4)
99.7
221.0|**£’000**|**Restated**
**2019**
**£’000**|
|---|---|---|---|---|
||17.0
(0.9)||19.2
(1.1)|(62.7)
18.1
75.2
138.3|
||||||
|||||168.9|
www.counsellingfoundation.org
2020 Annual Report
25
The Counselling Foundation Notes to the Financial Statements For the year ended 31 December 2020
## **2. Accounting policies**
- (a) The financial statements for the year ended 31 December 2020 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 1 January 2015) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and applicable law in the jurisdiction of registration being the Companies Act 2006. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). The accounts are prepared in sterling rounded to the nearest £’000. The Charity meets the definition of a public benefit entity under FRS 102.
- (b) Donations and grants are included in full in the Statement of Financial Activities when receivable. The value of services provided by volunteers has not been included.
- (c) Revenue under contracts for services is recognised to the extent that the right to income has been obtained by the performance or part performance of the contractual obligation.
- (d) In relation to its training services, the majority of the Foundation’s training is delivered over courses that cover up to an academic year, with the rest of the training delivered on short-term courses. For training courses that cover an academic year, the total fee income receivable for the course is recognised in debtors on acceptance for the course. At this point, the registration fee and, in previous years, a minority element of the overall fees for the training courses has been recognised as income, in recognition of the resources expended in setting up the courses and in the application, registration and acceptance process, with the majority of the fees for these year-long courses reflected in deferred revenue in the balance sheet and then released to income over the period of the training course. For the purposes of these financial statements, the accounting policy has been changed, so that, whilst the registration fee continues to be recognised as income on acceptance on the course, all the fees for these year-long courses is reflected in deferred revenue in the balance sheet and then released to income over the period of the training course, a presentation that more closely aligns income recognition to course delivery. The Foundation provides the option to settle training fees for the longer courses by instalments usually linked to the length of the course (which are less than 12 months).
- (e) Income from short-term training courses is recognised on delivery of the training. In addition, income generated from training placements is recognised over the period of the placement.
- (f) In relation to its provision of counselling under contracts to the NHS, the Foundation recognises revenue from these contracts on delivery of the relevant counselling sessions. Any amounts receivable or received before the year end in relation to counselling sessions to be delivered after the year end, is recognised in deferred income.
- (g) Income from investments and other income is included when receivable.
- (h) Expenditure is recognised in the year in which it is incurred. Expenditure includes attributable VAT which cannot be recovered.
www.counsellingfoundation.org
2020 Annual Report
26
The Counselling Foundation Notes to the Financial Statements For the year ended 31 December 2020
## **1.Accounting policies (continued)**
- (i) Expenditure is allocated to the activity where the cost relates directly to that activity. Combined, shared and support costs are apportioned by reference to management estimates of where time is spent or attributable or on management estimates of appropriate splits or pro rata to relevant income over a period of years. Pension costs are allocated between activities based on the allocation of employee costs of the related employee.
- (j) Rentals applicable to operating leases where substantially all the benefits and risks of ownership remain with the lessor are charged to profit and loss account as incurred.
- (k) Fixed assets are capitalised at cost. Depreciation is provided at rates calculated to write off the cost of each asset over its expected useful life.
- i. Fixtures, fittings and equipment - 15% straight line basis
- ii. Information technology equipment - 33% straight line basis
- (l) The accounts have been prepared in compliance with applicable legislation save that no depreciation has been provided in respect of freehold and long leasehold properties, which are carried at cost. This is a departure from the requirements of the Companies Act 2006 which requires all properties to be depreciated and has been made in order to give a fair presentation. The directors consider that to depreciate the properties would not give a true and fair view. The properties are maintained to a reasonable standard and their residual value is expected to be not less than their cost and therefore any diminution in their value is immaterial to the accounts. Impairment reviews are carried out on an annual basis. The directors consider that this policy results in the financial statements giving a true and fair view.
- (m) Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid after taking account of any trade discounts due.
- (n) Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of opening of the deposit or similar account.
- (o) Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
- (p) The charity has a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the Statement of Financial Activities.
- (q) 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 except for bank loans which are subsequently measured at the carrying value plus accrued interest less repayments.
www.counsellingfoundation.org
2020 Annual Report
27
## The Counselling Foundation Notes to the Financial Statements For the year ended 31 December 2020
## **1.Accounting policies (continued)**
- (r) Unrestricted funds are donations and other incoming resources receivable or generated for the objects of the charity without further specified purpose and are available as general funds.
- (s) Designated funds are unrestricted funds that have been earmarked by the directors for particular purposes.
- (t) Restricted funds are to be used for specific purposes as laid down by the donor or otherwise. Expenditure which meets these criteria is charged to the restricted funds.
- (u) These accounts have been prepared on a going concern basis. The Trustees believe that this is appropriate, having regard to the charity’s cash position, its budget and reforecasts for the rest of 2021 and 2022 and management accounts in the current year to date.
## **2. Change in accounting policy**
For the purposes of these financial statements, the Foundation has changed its accounting policy for the recognition of income on its annual training courses. Previously, on acceptance of the trainee on the course, a minority element of the overall fees for the training courses was recognised as income, with the majority of the fees for these yearlong courses reflected in deferred revenue in the balance sheet and then released to income over the period of the training course. For the purposes of these financial statements, the accounting policy has been changed, so that all the fees for these year-long courses is reflected in deferred revenue in the balance sheet and then released to income over the period of the training course, more closely aligning income recognition to course delivery. The effect of this change in accounting policy is summarised below.
|Income
Expenditure
Net income for the year
Opening funds
Closing funds
Income
Expenditure
Net income for the year
Opening funds
Closing funds|**2020**
**Under previous**
**accounting**
**policy**
**2020**
**Effect of change**
**in accounting**
**policy**
**2020**
**Under new**
**accounting**
**policy**
**£’000**
**£’000**
**£’000**
1,653.7
(5.3)
1,648.4
(1,496.8)
-
(1,496.8)|
|---|---|
||156.9
(5.3)
151.6
540.0
(96.6)
443.4|
||696.9
(101.9)
595.0|
||**2019**
**Under previous**
**accounting**
**policy**
**2019**
**Effect of change**
**in accounting**
**policy**
**Restated**
**2019**
**Under new**
**accounting**
**policy**
**£’000**
**£’000**
**£’000**
1,545.9
(24.2)
1,521.7
(1,584.4)
-
(1,584.4)|
||(38.5)
(24.2)
(62.7)
578.5
(72.4)
506.1|
||540.0
(96.6)
443.4|
www.counsellingfoundation.org
2020 Annual Report
28
## The Counselling Foundation Notes to the Financial Statements For the year ended 31 December 2020
|Assets
Creditors
Net assets
Restricted funds
Unrestricted funds
Total funds
Assets
Creditors
Net assets
Restricted funds
Unrestricted funds
Total funds|**2020**
**Under previous**
**accounting**
**policy**
**2020**
**Effect of change**
**in accounting**
**policy**
**2020**
**Under new**
**accounting**
**policy**
**£’000**
**£’000**
**£’000**
1,352.3
-
1,352.3
(655.4)
(101.9)
(757.3)|
|---|---|
||696.9
(101.9)
595.0|
||162.1
-
162.1
534.8
(101.9)
432.9|
||696.9
(101.9)
595.0|
||**2019**
**Under previous**
**accounting**
**policy**
**2019**
**Effect of change**
**in accounting**
**policy**
**Restated**
**2019**
**Under new**
**accounting**
**policy**
**£’000**
**£’000**
**£’000**
1,106.5
-
1,106.5
(566.5)
(96.6)
(663.1)|
||540.0
(96.6)
443.4|
||151.6
-
151.6
388.4
(96.6)
291.8|
||540.0
(96.6)
443.4|
## **3. Donations and grants**
|Donations
Grants|**2020**
**Unrestricted**
**Restricted**
**Total**
**£’000**
**£’000**
**£’000**
5.8
-
17.2
12.4
23.0
12.4
5.8
29.6
35.4|**2019**
**Total**
**£’000**|
|---|---|---|
|||24.2
16.0|
|||40.2|
www.counsellingfoundation.org
2020 Annual Report
29
## The Counselling Foundation Notes to the Financial Statements For the year ended 31 December 2020
## **4. Income from charitable activities**
|||**2020**||**2019**|
|---|---|---|---|---|
||**Unrestricted**|**Restricted**|**Total**|**Total**|
||**£’000**|**£’000**|**£’000**|**£’000**|
|Counselling income|844.6|52.2|896.8|857.0|
|Training income|705.6|-|705.6|610.2|
||1,550.2|52.2|1,602.4|1,467.2|
During 2020, the Foundation was provided with £56.3k (2019: £41k) for support for victims of crime and others and for domestic abuse and other services in Bedfordshire, part of which was delivered in 2020 with the remainder to be delivered in 2021.
## **5. Other income**
|Rents received
Miscellaneous income
Investment and interest income|**2020**
**Unrestricted**
**Restricted**
**Total**
**£’000**
**£’000**
**£’000**
0.8
8.9
0.9
-
-
-
0.8
8.9
0.9
10.6
-
10.6|**2019**
**Total**
**£’000**|
|---|---|---|
|||3.3
9.9
1.1|
|||14.3|
www.counsellingfoundation.org
2020 Annual Report
30
The Counselling Foundation Notes to the Financial Statements For the year ended 31 December 2020
## **6. Total expenditure**
|Staff and similar costs
Counselling costs
Premises
General expenses
Training costs
Depreciation
Communications
Advertising
Travel
Consultancy
Post & stationary
Bad & doubtful debts
Insurance
Bank charges
Audit fees
Interest
Subscriptions
Direct costs
Support costs allocated and
apportioned||**2020**
**Counselling**
**Training**
**Total**
**£’000**
**£’000**
**£’000**
442.4
406.5
848.9
393.5
-
393.5
87.5
18.6
-
26.3
18.8
11.2
113.8
37.4
11.2
10.0
7.0
17.0
5.2
3.4
8.6
0.7
13.5
14.2
3.0
1.1
4.1
8.7
6.3
15.0
2.7
2.0
4.7
1.4
5.8
7.2
3.5
2.3
5.8
5.0
3.6
8.6
3.2
2.2
5.4
0.5
0.3
0.4
0.2
0.9
0.5
986.2
510.6
1,496.8
654.6
331.6
283.7
226.9
938.3
558.5
986.2
510.6
1,496.8|**2019**
**Total**
**£’000**|
|---|---|---|---|
||||821.6
418.3
151.2
42.4
36.3
19.2
14.2
12.8
11.7
11.2
11.3
11.5
7.1
8.7
4.5
1.0
1.4|
||||1,584.4|
||||1,042.7
541.7|
||||1,584.4|
The governance costs incurred by the Foundation relate to audit plus trustee indemnity and directors’ liability insurance. Audit and related charges were £5.4k for the year ended 31 December 2020 (£4.5k for the year ended 31 December 2019). The cost of the Foundation’s insurance cover (which includes wider business insurance as well as trustee indemnity and directors’ liability cover) was £5.8k for the year ended 31 December 2020 (£7.1k for the year ended 31 December 2019. These audit and wider insurance costs total £11.2k for the year ended 31 December 2020 (£11.6k for the year ended 31 December 2019).
www.counsellingfoundation.org
2020 Annual Report
31
## The Counselling Foundation Notes to the Financial Statements For the year ended 31 December 2020
The split of expenditure for the previous year is shown below.
|Staff and similar costs
Counselling costs
Training direct costs
Premises
Mortgage interest
Communications
Audit fees
Consultancy
General expenses
Depreciation
Bank charges
Advertising
Travel
Post & stationery
Subscriptions
Insurance
Bad debts
Direct costs
Support costs allocated
and apportioned||**2019**
**Counselling**
**Training**
**Total**
**£’000**
**£’000**
**£’000**|
|---|---|---|
|||455.6
366.0
821.6
418.3
-
418.3
-
36.3
36.3
110.6
40.6
151.2
0.6
0.4
1.0
9.1
5.1
14.2
2.8
1.7
4.5
6.8
4.4
11.2
27.0
15.4
42.4
12.0
7.2
19.2
5.1
3.6
8.7
0.5
12.3
12.8
8.3
3.4
11.7
6.4
4.9
11.3
0.2
1.2
1.4
4.9
2.2
7.1
0.8
10.7
11.5|
|||1,069.0
515.4
1,584.4|
|||735.0
307.7
1,042.7
334.0
207.7
541.7
1,069.0
515.4
1,584.4|
## **7. Net income for the year**
Net income for the year is stated after charging:
|Net income for the year is stated after charging:
Interest payable
Depreciation
Auditors’ remuneration for audit services
Operating lease commitments|**2020**
**£’000**
0.9
17.0
5.4
63.2|**2019**
**£’000**|
|---|---|---|
|||1.0
19.2
4.5
85.0|
www.counsellingfoundation.org
2020 Annual Report
32
## The Counselling Foundation Notes to the Financial Statements For the year ended 31 December 2020
## **8. Staff costs and numbers**
Staff costs were as follows:
|Wages and salaries – management, finance and administration,
counselling and training including National Insurance
Social security costs – management, finance and administration,
counselling and training.
Pension contributions – management, finance and administration,
counselling and training
Temporary administration staff costs
Total staff costs
The number of employees whose emoluments exceeded £60,000 is
stated below:
£60,001 - £70,000|**2020**
**£’000**
769.4
47.2
13.7
-
830.3
**2020**
-|**2019**
**£’000**|
|---|---|---|
|||725.4
41.5
13.3
8.3|
|||788.5|
|||**2019**
-|
No trustee received any remuneration or pension contributions or received any other benefits of an employment. Trustee expenses of £nil (2019: £86) were reimbursed. The pension contributions related to monies paid into a defined contribution scheme for employees. Benefits are accruing for 26 members of staff under the defined contribution scheme. There were no outstanding contributions at the balance sheet date.
|The monthly average number of persons employed by the charity during
the year was:
Management
Counselling and training staff
Administration and support
The average weekly number of full-time equivalent employees during the
year, calculated on the basis of full-time equivalents was as follows:
Management
Counselling and training staff
Administration and support|**2020**
**Number**
6
44
14
64
**2020**
**Number**
4
12
11
27|**2019**
**Number**|
|---|---|---|
|||6
39
16|
|||61|
|||**2019**
**Number**|
|||4
8
11|
|||23|
www.counsellingfoundation.org
2020 Annual Report
33
## The Counselling Foundation Notes to the Financial Statements For the year ended 31 December 2020
## **8. Staff costs and numbers continued**
|Management remuneration was as follows:
Management remuneration|**2020**
**£’000**
210.8|**2019**
**£’000**|
|---|---|---|
|||198.5|
## **9. Taxation**
The company is exempt from corporation tax on its charitable activities.
## **10. Tangible fixed assets**
|**Cost**
At 31 December 2019
Additions
Disposals
At 31 December 2020
**Depreciation**
At 31 December 2019
Charge for the year
Eliminated on disposals
At 31 December 2020
**Net Book Value**
At 31 December 2020
At 31 December 2019|**Freehold**
**Property**
**Long Leasehold**
**Property**
**Fixtures,**
**fittings and**
**equipment**
**£’000**
**£’000**
**£’000**
88.3
318.4
125.5
-
-
-
-
-
88.3
318.4
125.5
-
-
81.4
-
-
17.0
-
-
-
-
-
98.4
88.3
318.4
27.1
88.3
318.4
44.1|**Total**
**£’000**|
|---|---|---|
|||532.2
-|
|||532.2|
|||81.4
17.0
-|
|||98.4|
|||433.8|
|||450.8|
The long leasehold properties, with a net book value at 31 December 2020 of £318.4k, are subject to security in relation to a bank loan of £24.5k at 31 December 2020.
No depreciation has been provided in respect of freehold and long leasehold properties, which are carried at cost. Had depreciation been provided at 2% per annum, the net book value of the freehold and long leasehold properties would have been £181.4k at 31 December 2020, compared to their net book value of £406.7k.
www.counsellingfoundation.org
2020 Annual Report
34
## The Counselling Foundation Notes to the Financial Statements For the year ended 31 December 2020
## **11. Debtors**
|Prepayments & Accrued Income
Other debtors
**Creditors: amounts falling due within one year**
Bank loan
Trade creditors
Accruals
Deferred income
Social security|**2020**
**£’000**
10.6
196.3
206.9
**2020**
**£’000**
5.6
92.9
72.9
546.2
20.8
738.4|**2019**
**£’000**|
|---|---|---|
|||6.9
153.5|
|||160.4|
|||**Restated**
**2019**
**£’000**|
|||6.0
115.0
37.8
466.4
13.8|
|||639.0|
## **12. Creditors: amounts falling due within one year**
All income deferred at the previous year end at 31 December 2019 (save for some immaterial amounts) was released during the year ended 31 December 2020. All income that was deferred as at the 31 December 2020 was deferred during the year then ended (save for some immaterial amounts) and has been or is expected to be released in the year to December 2021.
## **13. Creditors: amounts falling due after more than one year**
|**reditors: amounts falling due after more than one year**|||
|---|---|---|
|Bank loan
**Analysis of bank loan:**
Amounts payable by instalments:
Between one and two years
Between two and five years|**2020**
**£’000**
18.9
5.6
13.3
18.9|**2019**
**£’000**|
|||24.1|
|||6.0
18.1|
|||24.1|
In addition, there is an amount of £5.6k in relation to this bank loan that is included in Creditors: amounts falling due within one year. The total bank loan of £24.5k is secured on the long leasehold properties of the Foundation and at 31[st] December 2020 represented 8 **%** of their book value. The original loan of £150k was repayable over 25 years from 1992 but was renegotiated in January 2000 for a further 25 years. During the year, the interest rate was a floating interest rate equal to a margin of 2% per annum over the Base Rate.
www.counsellingfoundation.org
2020 Annual Report
35
## The Counselling Foundation Notes to the Financial Statements For the year ended 31 December 2020
## **14. Analysis of net assets between funds**
|Tangible fixed assets
Current assets
Debtors
Cash
Creditors: due within 1 year
Creditors: due after more than
1 year
Net assets at 31 December
2020|**Unrestricted**
**funds**
**General Funds**
**Unrestricted**
**funds**
**Designated**
**Funds**
**Restricted**
**Funds**
**Total**
**Funds**
**£’000**
**£’000**
**£’000**
**£’000**|
|---|---|
||354.5
-
79.3
433.8
186.4
-
20.5
206.9
489.4
100.0
122.2
711.6
(678.5)
-
(59.9)
(738.4)
(18.9)
-
-
(18.9)|
||332.9
100.0
162.1
595.0|
## **15. Movement in funds**
|**Movement in funds**||||||
|---|---|---|---|---|---|
||**Restated**|||||
||**At 31**|**2020**|**2020**||**At 31**|
||**December**|**Incoming**|**Outgoing**|**2020**|**December**|
||**2019**|**Resources**|**Resources**|**Transfers**|**2020**|
||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|Restricted funds:||||||
|Freehold Property|13.6|-|-|-|13.6|
|Leasehold Property|65.7|-|-|-|65.7|
|Cash – Relating to property|54.4|-|-|-|54.4|
|Cash - Other|17.9|81.8|(71.3)|-|28.4|
|Total restricted funds|151.6|81.8|(71.3)|-|162.1|
|Unrestricted funds:||||||
|Designated funds||||||
|IT|-|-|-|20.0|20.0|
|Property|-|-|-|80.0|80.0|
|Total designated funds|-|-|-|100.0|100.0|
|General funds|291.8|1,566.6|(1,425.5)|(100.0)|332.9|
|Total unrestricted funds|291.8|1,566.6|(1,425.5)|-|432.9|
|Total funds|443.4|1,648.4|(1,496.8)|-|595.0|
www.counsellingfoundation.org
2020 Annual Report
36
The Counselling Foundation Notes to the Financial Statements For the year ended 31 December 2020
## **Restricted funds:**
These are funds that were provided specifically towards the purchase and renovation of properties, plus income from grants made to the Foundation for specific purposes.
## **Unrestricted funds:**
## Designated funds
The Foundation has designated funds for the enhancement of its IT and technology plus for the repair, maintenance and improvement of existing properties and to support future property acquisitions.
## General Fund
This is income receivable or generated for the objects of the charity without further specified purposes.
## **16. Legal status of the Charity**
The Charity is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity whilst that person is a member, or within one year after that person ceases to be a member. The Company was incorporated in England and Wales, the registered office is: 1 College Yard, Lower Dagnall Street, St Albans, Hertfordshire, AL3 4PA.
## **17. Operating lease commitments**
At 31 December 2020 the charity had commitments under operating leases as set out below:
|Operating lease payments due in less than one year:
Operating lease payments due in the second to fifth
year:|**Land and buildings**
**Equipment**
**2020**
**2019**
**2020**
**2019**
**£’000**
**£’000**
**£’000**
**£’000**|
|---|---|
||31.0
79.5
6.2
5.2
31.0
64.2
11.5
17.6|
||62.0
143.7
17.7
22.8|
## **18. Related party transactions**
There have been no related party transactions in the year.
www.counsellingfoundation.org
2020 Annual Report
37
## The Counselling Foundation Notes to the Financial Statements For the year ended 31 December 2020
## **19. Comparative funds**
|**Income from:**
Donations and grants
Charitable activities:
Training and counselling
Other income
**Total income**
**Expenditure on:**
Charitable activities:
Training and counselling
**Total expenditure**
**Net income for the year**
Transfers between funds
**Net Movement in Funds**
**Total Funds at 1 December 2018**
**Total Funds at 31 December 2019**|**Restated**
**Unrestricted**
**Funds**
**2019**
**£’000**
**Restated**
**Restricted**
**Funds**
**2019**
**£’000**
**Restated**
**Total**
**Funds**
**2019**
**£’000**|
|---|---|
||12.5
27.7
40.2
1,457.9
9.3
1,467.2
14.3
-
14.3|
||1,484.7
37.0
1,521.7|
||1,552.5
31.9
1,584.4|
||1,552.5
31.9
1,584.4|
||(67.8)
5.1
(62.7)
-
-
-|
||(67.8)
5.1
(62.7)
359.6
146.5
506.1|
||291.8
151.6
443.4|
www.counsellingfoundation.org
2020 Annual Report
38
The Counselling Foundation Notes to the Financial Statements For the year ended 31 December 2020
## **20. Associate entity**
The Foundation has a 40% equity and voting interest in College Yard Management Limited, which owns the freehold of and provides property management services for the College Yard site in Lower Dagnall Road, St Albans. The Foundation has long leasehold interests in 2 of the 5 units at this site and a short leasehold interest in another of the 5 units. The net assets of College Yard Management Limited, as shown in its most recently filed unaudited financial statements to 31 December 2019, were £100. The Foundation carries its investment in this company at nil cost. Its share of the net assets of College Yard Management Limited was £40. Save for reimbursement or recharges of appropriate costs, the Foundation has not received any distribution or income from College Yard Management Limited.
www.counsellingfoundation.org