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2021-12-31-accounts

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The Counselling Foundation

Annual Report and Accounts 2021

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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2021 Annual Report and Accounts

The Counselling Foundation

The Counselling Foundation provides counselling training and counselling, seeking to promote positive mental health. It has been working to support its communities since 1974. It works with people to prepare for a career in counselling, contribute to professional development or by offering counselling support to inspire a different perspective on relationships and life. It operates remotely and face-to-face based from 5 Centres across Hertfordshire and Bedfordshire.

Further information can be found on: www.counsellingfoundation.org

BEDFORD CENTRE STEVENAGE CENTRE 58 Tavistock Street Springfield House Community Centre Bedford 24 High Street Stevenage MK40 2RD SG1 3EJ bedford@counsellingfoundation.org stevenage@counsellingfoundation.org BROXBOURNE CENTRE ST ALBANS CENTRE Bishops College 1 College Yard Churchgate Lower Dagnall Street Cheshunt St Albans Waltham Cross AL3 4PA EN8 9XA stalbans@counsellingfoundation.org broxbourne@counsellingfoundation.org LUTON CENTRE FOUNDATION OFFICE & TRAINING CENTRE Hilde Eccles House 1 College Yard 70-72 Princess Street Lower Dagnall Street Luton St Albans LU1 5AT AL3 4PA luton@counsellingfoundation.org foundation@counsellingfoundation.org training@counsellingfoundation.org

The Counselling Foundation is referred to in this document as the Company or the Foundation.

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Trustees

Antony Cates (Chair)

Frances Bogie Sue Murphy Mandy Macqueen Wendy Molefi-Youri

Executive

Emma Branch - CEO Jo Spilling - Clinical Mimie Hollist - Training Tracy McPhillips - Operations Mark Graham (from June 2021) – IT & Digital Stephen Anstee - Finance

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

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TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees present their annual report with the accounts of the Company for the year ended 31 December 2021. 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 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:

Charitable Counselling

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 were delivered remotely in 2021, in the light of the ongoing Covid restrictions.

Training

In addition, we offer training courses to people who wish to become professionally qualified in counselling. These courses cover a 5-year programme, running from one year Certificate to a two-year Diploma and a two-year Advanced Diploma. A key feature of our training in Hertfordshire and Bedfordshire is the opportunity for trainees to access supervised placements in-house in our counselling centres, which enables trainee counsellors to acquire the client hours necessary for their counselling qualifications. Training is mainly organised from our St Albans and Bedford centres and has been

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delivered in a combination of remote and face to face delivery during the Covid pandemic.

We are an organisational member of the British Association for Counselling and Psychotherapy (BACP). Our Diploma and Advanced Diploma courses are accredited by the British Association for Counselling and Psychotherapy so that successful completion of these by our students, plus the necessary experience, enables them to become members of the British Association for Counselling and Psychotherapy.

Achievement and Performance

Counselling

The Foundation delivered counselling sessions under its own charitable service and under contracts or sub-contracts for the NHS, as follows:

Bedford Centre
Broxbourne Centre
Luton Centre
St Albans Centre
Stevenage Centre
Charitable Counselling
NHS and similar
Other
Total counselling		 Number of Counselling
sessions delivered
2021
Number of Counselling
sessions delivered
2020
1,017
1,262
1,753
1,409
2,241
2,074
4,473
4,068
1,438
1,512
10,922
10,325
10,049
11,836
1,326
1,308
22,297
23,469

Charitable counselling

Although we typically previously had up to 300 clients in our charitable counselling service prior to Covid, many at subsidised rates, these numbers dropped in 2020 with the impact of Covid. Whilst we are pleased by the number of our clients who adopted remote counselling, we inevitably lost some counselling sessions in 2020 as remote working does not suit all clients. Client numbers started to recover over 2020 and continued to do so into 2021 to date, as reflected in the higher charitable counselling session volumes in 2021. We refined the framework for our charges from April 2021 including reducing the minimum session fee at which we can, subject to availability, provide a limited number of subsidised counselling places, and this may reflect in lower average fee levels going forward.

NHS counselling service

The Foundation provides short-term counselling to patients referred under the NHS. Income for these services is generated by charges based on a rate per counselling session.

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Although the number of providers on the contract has now increased, we successfully participated in the tender at the end of 2020 for the renewal of our NHS Hertfordshire contract. With limits on the availability of the counsellors with the specific training that the contract requires, the volume decreases that we have experienced in recent years continued.

The contract for the delivery of short-term counselling covering north Bedfordshire was extended again on a short-term basis to the end of 2021. We await clarification as to whether and the extent to which it will continue thereafter.

In addition, we provide a number of other counselling services, including support for victims of crime and domestic and sexual abuse in Bedfordshire. We have been in discussions to provide counselling services in partnership with other local charities.

Training

The Foundation provides a programme of counselling training courses based on the academic year from September – starting with the one-year Certificate and progressing through the two-year Diploma and two-year Advanced Diploma. The Training service provides some continuity, with a proportion of trainees usually continuing from one course to the next.

In addition, the Foundation provides short term Introduction to Counselling courses, typically delivered over 4 to 6 weeks. The Introduction to Counselling course provides an insight for clients with an interest in counselling. These Introduction courses proved successful with remote delivery during the Covid restrictions including in 2021.

Student numbers
Annual courses:
Certificate in Psychodynamic Counselling Skills
Diploma in Psychodynamic Counselling
Advanced Diploma in Psychodynamic
Counselling
Totals		 Autumn
2021
Autumn
2020
Autumn
2019
Autumn
2018
99
101
99
86
65
67
65
67
32
32
33
32
196
200
197
185

Income from Training comprises principally fees for each course and for training placements. For the 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.

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. It thereby fulfils the charity mission of providing education and helps in raising awareness and knowledge of

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mental health. Our trainees undertake supervised placements in our counselling service - supporting charitable counselling clients while building their professional skills.

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.

Operations

We historically provided our counselling and training services face-to-face, from our centres and other locations. Given the impact of Covid-19, we worked rapidly to migrate to provision of our services remotely, in both counselling and training from April 2020 onwards. Although we have seen a return to face-to-face counselling and training, many of our counselling sessions and some of our training continues to be delivered remotely.

Following the impact of Covid, our staff worked hard to maintain our services and operations, in a blend of remote and face to face working. The Foundation has continued to maintain its Centre infrastructure around which much of our charitable counselling continues to be based.

As we emerged from the Covid restrictions, the Foundation identified that repair, maintenance and refurbishment was required at its St Albans property and in particular at its Luton property. The Foundation has therefore in 2022 commenced a programme of building, repair and maintenance work to be funded from its reserves.

During 2021, we started a process of enhancing our technology infrastructure in order for the Foundation to better operate in today’s environment. As well as a new IT outsourced provider, we have invested in IT infrastructure and, with the assistance of a team of volunteers to whom we are very grateful, are developing our own database and app technology to support our counselling services.

Financial

Financial out-turn

The Foundation reported net income for the year ended 31 December 2021. Following the significant underlying deficit in the 2018 period and the deficit in 2019, this 2021 net income built on the net income reported in 2020 as a continuing progression in enhancing our financial sustainability.

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Donations and grants
Training and counselling income
Other income
Total income
Expenditure
Net income, all funds
Less restricted funds net income
Net income, unrestricted funds
Designated fund for 2022/23 Property programme
Net income, after 2022/23 Property programme fund
Transfer to other funds
Net movement in general funds		 Year ended
31 December 2021
£’000
Year ended
31 December 2020
£’000
56.5
35.4
1,649.1
1,602.4
4.7
10.6
1,710.3
1,648.4
(1,493.7)
(1,496.8)
216.6
151.6
(8.2)
(10.5)
208.4
141.1
(80.0)
-

128.4
141.1
(85.2)
(100.0)
43.2
41.1

Although NHS counselling volumes in Hertfordshire were lower, the Foundation benefitted from enhancing Training income, including from Introduction to Counselling courses delivered online in the Covid environment, and favourable volumes on its Bedfordshire NHS and similar work.

The net income recorded in 2021 and 2020 helps build the Foundation’s finances following previous periods of unfavourable underlying financial results and will also assist the Foundation in investing in its infrastructure and in its services to its communities. More immediately, it allows the Foundation to carry out in 2022 and into 2023 much needed repair, maintenance and related work on its owned properties.

Balance sheet

The Foundation’s balance sheet includes tangible fixed assets with a net book value at 31 December 2021 of £406.7k, relating to freehold and long-leasehold properties. Debtors totaling £153.0k at 31 December 2021 mainly relate to training course fees being settled by instalments and amounts due in relation to counselling. At 31 December 2021, cash was £1,075.1k mostly held on short term deposits. Creditors (due within one year) of £765.9k at 31 December 2021 include deferred income of £540.2k, the majority in relation to training courses to be released as income over the remainder of the academic year. The Foundation had £68.8k in bank loans at 31 December 2021 (part of which is included in Creditors due within one year). Net assets at 31 December 2021 were £811.6k.

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

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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:

Restricted reserves
Unrestricted reserves
Designated funds
-
2022/23 Property programme
-
General property fund
-
Training activities fund
-
Other
Total designated funds
General funds
Unrestricted reserves
Total funds		 31 December 2021
£’000
31 December 2020
£’000
162.5
162.1
80.0
-
100.0
80.0
93.0
-
-
20.0
273.0
100.0
376.1
332.9
649.1
432.9
811.6
595.0

The restricted reserves comprise long-standing restricted reserves of £133.7k, arising many years ago to part fund the purchase of some of the Foundation’s properties (of which £54.4k is currently held in cash), and £28.8k arising from restricted grant and other income (net of related expenditure to date).

The Foundation’s St Albans and Luton Centres require maintenance and refurbishment work, particularly after the Covid period. Work at the Luton Centre has been carried out in 2022 and is expected at the St Albans Centre in the near future. To this end, the Foundation has set up a designated fund for these 2022-2023 property works. The Foundation continues also to maintain the more general designated fund that it set up in 2020 for general future maintenance and improvement of existing properties and to support future potential property acquisitions. In addition, it has earmarked designated funds for the continuation and improvement of its training activities.

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

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circumstance. The unrestricted funds (including designated funds) held by the Foundation stood at £649.1k at 31 December 2021, which represented approximately 5.2 times the Foundation’s average monthly expenditure in the year ended 31 December 2021. However, a substantial proportion of the Foundation’s assets which make up these unrestricted funds are held in the form of owned property, used in the delivery of the Foundation’s services, and therefore not readily realisable to fund any financial requirements in the short-term. In addition, the Foundation has set aside from its unrestricted reserves an amount to fund work required on its owned properties in 2022 and 2023. The unrestricted reserves of the Foundation, after eliminating those represented by property assets and required to fund the 2022/23 property programme, were £241.7k at 31 December 2021, which represents 1.9 months average expenditure.

Unrestricted reserves
Less Property assets funded by unrestricted reserves
Less 2022/23 Property programme
Adjusted unrestricted reserves
Average 2021 monthly expenditure
Number of months expenditure held in adjusted unrestricted reserves		 31-Dec-21
£’000
649.1
-327.4
-80.0
241.7
124.5
1.9

Whilst the Foundation holds cash and deposit balances to fund its short-term requirements and seasonal training related cash flow cycle, these balances include amounts received in advance as deferred revenue to be released over the subsequent year and are not therefore necessarily an indicator of surplus funds. Net current assets, which are stated after deducting deferred revenue, are a better indicator of surplus readily realisable assets. Net current assets held in unrestricted reserves and after deducting the fund designated for the 2022-23 property work, were £299.0k at 31 December 2021, representing 2.4 times the Foundation’s average monthly expenditure in the year ended 31 December 2021.

Net current assets
Less Net Current assets held in restricted reserves
Less 2022/23 Property programme
Adjusted net current assets
Average 2021 monthly expenditure		 31-Dec-21
£’000
462.2
-83.2
-80.0
299.0
124.5

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Number of months expenditure held in adjusted net current assets 2.4 Although the Foundation considers that its financial reserves are adequate for the time being, its reserves policy is to continue the work of the last few years to further enhance its financial resilience. Although it would like in the long-term to target 6 months’ expenditure in unrestricted realisable assets/reserves, the target in the first instance is that both:

be equivalent to at least 3 months’ average expenditure. Although it may not be possible every year to enhance financial reserves particularly in a challenging economic climate, the Foundation aims to achieve these initial targets by continuing, where possible to do so, to manage its financially affairs effectively. Once it has achieved these targets, the Foundation will further consider its long-term reserves policy.

Plans and Outlook

The Foundation believes that its training and counselling services can continue to contribute to its communities. It aims to continue to deliver its charitable mission to provide counselling and counselling training and promote better mental health, whilst seeking to manage and, where practical having regard to its charitable objectives, enhance its financial sustainability.

There are potential challenges, including the extent to which one of the existing counselling contracts will continue beyond 2022 and the possibility of lower fee levels in charitable counselling. The evolving more difficult economic environment might also impact our income levels and generate cost pressures. To help mitigate these, the Foundation intends to continue to seek opportunities to extend and enhance its services, which might or might not include additional counselling arrangements.

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:

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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 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 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 gender and ethnic mix. 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 2021 are:

Antony Cates Appointed 5 October 2021
Mandy Macqueen
Wendy Molefi-Youri
Sue Murphy Appointed 2ndFebruary 2021
Frances Bogie Appointed 2ndFebruary 2021
Julian Gell Resigned 5 October 2021
Richard Lane Appointed 2ndFebruary 2021, resigned 20thApril 2021

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Thomas Smith Resigned 2[nd] February 2021

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 staff including those in specific areas as follows:

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. The Board receives regular reports from the Executive, including operational and financial reports. In addition, Trustees may attend other meetings during the year where appropriate.

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 2021 comprised salary and pension contributions. The total remuneration of the senior management was £224.9k (£210.8k for year ended 31 December 2020). 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 previous 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 eligible 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, as appropriate. The Foundation maintains insurance cover.

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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 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

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Accounts

Antony Cates, Chair

Date: 28 September 2022

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Report of the Independent Auditors to the Members of The Counselling Foundation for the year ended 31 December 2021

Independent Auditor’s Report to the Trustees of The Counselling Foundation for the year ended 31 December 2021

Opinion

We have audited the financial statements of The Counselling Foundation (the ‘charity’) for the year ended 31 December 2021 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:

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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Accounts

Report of the Independent Auditors to the Members of The Counselling Foundation for the year ended 31 December 2021 - 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:

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Accounts

Report of the Independent Auditors to the Members of The Counselling Foundation for the year ended 31 December 2021 - continued

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 12-13, 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.

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Accounts

Report of the Independent Auditors to the Members of The Counselling Foundation for the year ended 31 December 2021 - 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:

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.

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Accounts

Report of the Independent Auditors to the Members of The Counselling Foundation for the year ended 31 December 2021 - continued

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.

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 2022

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2021 Annual Report and Accounts

The Counselling Foundation Statement of Financial Activities (including Income and Expenditure Account) For the year ended 31 December 2021

Notes
Income from:
Donations and grants
2
Charitable activities:
Training and counselling
3
Other income
4
Total income
Expenditure on:
Charitable activities:
Training and counselling
Total expenditure
5
Net income for the year
6
Transfers between funds
Net Movement in Funds
Funds at start of year
Funds at end of year		 Unrestricted
funds
General
Funds
2021
£’000
Unrestricted
funds
Designated
funds
2021
£’000
Restricted
Funds
2021
£’000
Total
Funds
2021
£’000
3.0
-
53.5
56.5
1,597.9
-
51.2
1,649.1
4.7
-
-
4.7
1,605.6
-
104.7
1,710.3
1,397.2
-
96.5
1,493.7
1,397.2
-
96.5
1,493.7
208.4
-
8.2
216.6
(165.2)
173.0
(7.8)
-
43.2
173.0
0.4
216.6
332.9
100.0
162.1
595.0
376.1
273.0
162.5
811.6		 Total
Funds
2020
£’000
35.4
1,602.4
10.6
1,648.4
1,496.8
1,496.8
151.6
-
151.6
443.4
595.0

Movements in funds are disclosed in the notes to the financial statements.

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2021 Annual Report and Accounts

----- Start of picture text -----
The Counselling Foundation
Balance Sheet
At 31 December 2021
----- End of picture text -----

he
Notes
Fixed Assets
Tangible assets
9
Current assets
Debtors
10
Cash at bank and in hand
11
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 2021
£’000
£’000
406.7
153.0
1,075.1
1,228.1
(765.9)
462.2
868.9
(57.3)
811.6
162.5
376.1
273.0
649.1
811.6		 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
153.0
1,075.1		 206.9
711.6
1,228.1
(765.9)		 918.5
(738.4)
376.1
273.0		 332.9
100.0

On behalf of the Board, which approved the accounts on 28 September 2022

Antony Cates, Director

Date 28 September 2022 Company Number: 02713806

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2021 Annual Report and

Accounts

The Counselling Foundation Cash Flow Statement For the year ended 31 December 2021

2021
Note
£’000
£’000
Cash flows from Operating Activities
A
318.9
Cash flows from Investing Activities
Interest income
0.3
Cash from/used in Investing
Activities
0.3
Cash flows from Financing Activities
New borrowing
50.0
Repayment of borrowing
(5.7)
Cash from/used in Financing
Activities
44.3
Change in cash and cash equivalents
in the year
363.5
Cash and cash equivalents at the
beginning of the year
711.6
Cash and cash equivalents at the end
of the year
1,075.1
Of the cash and cash equivalents at 31 December, the following amounts ar
Restricted reserves
138.7
Unrestricted funds
General funds
663.4
Designated funds
273.0
Cash and cash equivalents at the
end of the year
1,075.1		 £’000 2020
£’000
0.9 221.0
0.9
(5.6)
-
(5.6)
216.3
495.3
711.6

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2021 Annual Report and

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The Counselling Foundation Cash Flow Statement For the year ended 31 December 2021

NOTE TO THE CASH FLOW STATEMENT

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 2021
£’000
216.6
26.8
53.9
21.6
318.9		 £’000 2020
£’000
27.1
(0.3)		 17.0
(0.9)		 151.6
16.1
(46.4)
99.7
221.0

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2021 Annual Report and

Accounts

The Counselling Foundation Notes to the Financial Statements For the year ended 31 December 2021

1. Accounting policies

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2021 Annual Report and

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The Counselling Foundation Notes to the Financial Statements For the year ended 31 December 2021

1.Accounting policies (continued)

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2021 Annual Report and Accounts

The Counselling Foundation Notes to the Financial Statements For the year ended 31 December 2021

1.Accounting policies (continued)

2. Donations and grants

Donations
Grants
Income from charitable activities
Counselling income
Training income		 2021
Unrestricted
Restricted
Total
£’000
£’000
£’000
3.0
22.9
25.9
-
30.6
30.6
3.0
53.5
56.5
2021
Unrestricted
Restricted
Total
£’000
£’000
£’000
806.1
51.2
857.3
791.8
-
791.8
1,597.9
51.2
1,649.1		 2020
Total
£’000
23.0
12.4
35.4
2020
Total
£’000
896.8
705.6
1,602.4

3. Income from charitable activities

During 2021, the Foundation was provided with £50k (2020 £56.3k) for support for victims of crime, domestic and sexual abuse and other similar counselling services in Bedfordshire, part of which was delivered in 2021 with the remainder to be delivered in 2022.

4. Other income

Rents received
Miscellaneous income
Investment and interest income		 2021
Unrestricted
Restricted
Total
£’000
£’000
£’000
-
-
-
4.4
-
4.4
0.3
-
0.3
4.7
-
4.7		 2020
Total
£’000
0.8
8.9
0.9
10.6

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2021 Annual Report and Accounts

The Counselling Foundation Notes to the Financial Statements For the year ended 31 December 2021

5. Total expenditure

Staff and similar costs
Counselling costs
Premises
IT
Depreciation
General expenses
Consultancy
Training costs
Bank charges
Bad & doubtful debts
Communications
Advertising
Insurance
Audit fees
Post & stationary
Travel
Subscriptions
Interest
Direct costs
Support costs allocated and
apportioned		 2021
2020
Counselling
Training
Total
Counselling
Training
Total
£’000
£’000
£’000
£’000
£’000
£’000
326.1
532.9
859.0
332.8
516.1
848.9
358.0
-
358.0
393.5
-
393.5
57.0
33.9
90.9
66.2
47.6
113.8
17.5
25.8
43.3
8.5
10.9
19.4
2.9
24.2
27.1
1.8
15.2
17.0
6.3
19.6
25.9
5.4
12.6
18.0
7.7
9.8
17.5
6.7
8.3
15.0
-
15.7
15.7
-
11.2
11.2
1.2
8.3
9.5
1.1
7.5
8.6
4.8
4.6
9.4
1.4
5.8
7.2
3.4
4.4
7.8
3.7
4.9
8.6
-
7.0
7.0
-
14.2
14.2
2.7
3.5
6.2
2.5
3.3
5.8
2.3
3.1
5.4
2.3
3.1
5.4
2.4
2.1
4.5
2.3
2.4
4.7
1.6
2.1
3.7
2.9
1.2
4.1
0.4
2.1
2.5
0.2
0.3
0.5
0.1
0.2
0.3
0.4
0.5
0.9
794.4
699.3
1,493.7
831.7
665.1
1,496.8
610.8
309.8
920.6
654.6
283.7
938.3
183.6
389.5
573.1
177.1
381.4
558.5
794.4
699.3
1,493.7
831.7
665.1
1,496.8

The allocation or apportionment of support costs in relation to 2020 has been restated to be consistent with the basis and estimates adopted for 2021.

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 2021 (£5.4k for the year ended 31 December 2020). The cost of the Foundation’s insurance cover (which includes wider business insurance as well as trustee indemnity and directors’ liability cover) was £6.2k for the year ended 31 December 2021 (£5.8k for the year ended 31 December 2020). These audit and wider insurance costs total £11.6k for the year ended 31 December 2021 (£11.2k for the year ended 31 December 2020).

6. Net income for the year

Net income for the year is stated after charging:
Interest payable
Depreciation
Auditors’ remuneration for audit services
Operating lease commitments		 2021
£’000
0.3
27.1
5.4
69.5		 2020
£’000
0.9
17.0
5.4
63.2

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2021 Annual Report and Accounts

The Counselling Foundation Notes to the Financial Statements For the year ended 31 December 2021

7. Staff costs and numbers

Staff costs were as follows:
Wages and salaries – management, finance and administration,
counselling and training
Social security costs – management, finance and administration,
counselling and training.
Pension contributions – management, finance and administration,
counselling and training
Total staff costs		 2021
£’000
793.8
48.0
15.6
857.4		 2020
£’000
769.4
47.2
13.7
830.3

Staff costs include redundancy and termination payments incurred and paid in 2021 of £22.9k (2020: £nil).

The number of employees whose emoluments exceeded £60,000 is 2021 2020
stated below:
£60,001 - £70,000 - -

No trustee received any remuneration or pension contributions or received any other benefits of an employment. Trustee expenses of £nil (2020: £nil) were reimbursed. The pension contributions related to monies paid into a defined contribution scheme for employees. Benefits are accruing for 24 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
Management remuneration was as follows:
Management remuneration		 2021
Number
5
44
15
64
2021
Number
4
11
12
27
2021
£’000
224.9		 2020
Number
6
44
14
64
2020
Number
4
12
11
27
2020
£’000
210.8

8. Taxation

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

Any surplus from training supplies is applied to the continuance or improvement of training activities.

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2021 Annual Report and Accounts

The Counselling Foundation Notes to the Financial Statements For the year ended 31 December 2021

9. Tangible fixed assets

Tangible fixed assets
Cost
At 31 December 2020
Additions
Disposals
At 31 December 2021
Depreciation
At 31 December 2020
Charge for the year
Eliminated on disposals
At 31 December 2021
Net Book Value
At 31 December 2021
At 31 December 2020		 Freehold
Property
Long Leasehold
Property
Fixtures,
fittings and
equipment
£’000
£’000
£’000
88.3
318.4
125.5
-
-
-
-
(31.5)
88.3
318.4
94.0
-
-
98.4
-
-
27.1
-
-
(31.5)
-
-
94.0
88.3
318.4
-
88.3
318.4
27.1		 Total
£’000
532.2
(31.5)
500.7
98.4
27.1
(31.5)
94.0
406.7
433.8

The long leasehold properties, with a net book value at 31 December 2021 of £318.4k, are subject to security in relation to a bank loan of £18.8k at 31 December 2021.

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 £173.3k at 31 December 2021, compared to their net book value of £406.7k.

10.
Debtors
Prepayments & Accrued Income
Other debtors
11.
Cash
Cash at bank
Cash deposits (short term)		 2021
£’000
6.7
146.3
153.0
2021
£’000
85.2
989.9
1,075.1		 2020
£’000
10.6
196.3
206.9
2020
£’000
93.4
618.2
711.6

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2021 Annual Report and Accounts

The Counselling Foundation Notes to the Financial Statements For the year ended 31 December 2021

12. Creditors: amounts falling due within one year

Bank loans
Trade creditors
Accruals
Deferred income
Social security		 2021
£’000
11.5
116.7
81.5
540.2
16.0
765.9		 2020
£’000
5.6
92.9
72.9
546.2
20.8
738.4

All income deferred at the previous year end at 31 December 2020 (save for some immaterial amounts) was released during the year ended 31 December 2021. All income that was deferred as at the 31 December 2021 (save for some immaterial amounts) was deferred during the year then ended and has been or is expected to be released in the year to December 2022.

13. Creditors: amounts falling due after more than one year

reditors: amounts falling due after more than one year
Bank loans
Analysis of bank loans:
Amounts payable by instalments:
Between one and two years
Between two and five years
After 5 years		 2021
£’000
57.3
15.7
37.4
4.2
57.3		 2020
£’000
18.9
5.6
13.3
-
18.9

In addition, there is an amount of £11.5k (2020: £5.6k) in relation to these bank loans that is included in Creditors: amounts falling due within one year.

There are two bank loans. One bank loan of £18.8k (in total) is secured on the long leasehold properties of the Foundation and at 31[st] December 2021 represented 6 % of their book value. The original loan of £150k was repayable over 25 years from 1992 but was extended 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.

The second loan is an unsecured loan under the governments Covid related bounce back loan scheme. The original loan of £50k was drawn down in May 2021 and bears interest at a fixed rate of 2.5% and is repayable by monthly instalments over 5 years starting one year after drawdown.

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The Counselling Foundation Notes to the Financial Statements For the year ended 31 December 2021

14. Analysis of net assets between funds

Tangible fixed assets
Current assets
Debtors
Cash
Creditors: due within 1 year
Net current assets
Creditors: due after more than
1 year
Net assets at 31 December
2021		 Unrestricted
funds
General Funds
Unrestricted
funds
Designated
Funds
Restricted
Funds
Total
Funds
£’000
£’000
£’000
£’000
327.4
-
79.3
406.7
153.0
-
-
153.0
663.4
273.0
138.7
1,075.1
(710.4)
(55.5)
(765.9)
106.0
273.0
83.2
462.2
(57.3)
-
-
(57.3)
376.1
273.0
162.5
811.6

15. Movement in funds

Movement in funds
At 31 2021 2021 2021 At 31
December Incoming Outgoing Transfers December
2020 Resources Resources 2021
£’000 £’000 £’000 £’000 £’000
Restricted funds:
Freehold Property 13.6 - - - 13.6
Leasehold Property 65.7 - - - 65.7
Cash – re property 54.4 - - - 54.4
Cash – Other 28.4 104.7 (96.5) (7.8) 28.8
Total restricted funds 162.1 104.7 (96.5) (7.8) 162.5
Unrestricted funds:
Designated funds
2022/23 Property programme - 80.0 80.0
General property fund 80.0 20.0 100.0
Training fund - 93.0 93.0
IT 20.0 (20.0) -
Total designated funds 100.0 - - 173.0 273.0
General funds 332.9 1,605.6 (1,397.2) (165.2) 376.1
Total unrestricted funds 432.9 1,605.6 (1,397.2) 7.8 649.1
Total funds 595.0 1,710.3 (1,493.7) - 811.6

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The Counselling Foundation Notes to the Financial Statements For the year ended 31 December 2021

Restricted funds:

These are funds that were provided specifically towards the purchase and renovation of properties, plus net income from grants made to the Foundation for specific purposes.

Unrestricted funds:

Designated funds

The Foundation has designated funds for:

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 2021 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
2021
2020
2021
2020
£’000
£’000
£’000
£’000
31.0
31.0
6.2
6.2
-
31.0
5.2
11.5
31.0
62.0
11.4
17.7

18. Related party transactions

There have been no related party transactions in the year.

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The Counselling Foundation Notes to the Financial Statements For the year ended 31 December 2021

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
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

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 2020, 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.

33