**Report of the Trustees and Financial Statements for the year ended 31 August 2020**
## **Advance: The Institute for The Scotson Technique**
**Financial Statements for the Year Ended 31 August 2020**
|**Contents**|**Page**|
|---|---|
|Report of the Trustees|1 to 5|
|Report of the Independent Examiner|6|
|Statement of Financial Activities|7|
|Balance Sheet|8|
|Notes to the Financial Statements|9 to 12|
## **Advance: The Institute for The Scotson Technique**
## **Report of the Trustees for the Year Ended 31 August 2020**
The trustees present their annual report and financial statements of the charity for the year ended 31 August 2020. The financial statements in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity’s trust deed, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published on 16 July 2014.
## **OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT**
The Charity is dedicated to provide an optimum level of therapeutic assistance for brain injured children and young adults. The Scotson Technique (TST) is a massage technique developed by the Charity’s Clinical Director after many years of PhD research at University College, London. Respiratory measurements of every child show consistently improved breathing while the children’s before and after pictures show equally consistent improvements in their posture. Moreover, parents/caregivers anecdotally report improvements in movement, general health, vision, digestion and behaviour as well as intellectual capacity. The children also receive Hyperbaric Oxygen Therapy and dietary assistance as a support to the main therapy. Advance teaches parents of children with conditions such as cerebral palsy and autism how to improve their child’s breathing.
In setting our objectives and planning our activities the trustees have given careful consideration to the Charity Commission’s public benefit guidance.
## **ACHIEVEMENTS AND PERFORMANCE**
Advance, although small has continued to be of considerable service helping to optimise quality of life for children and adults with a wide range of conditions which can be improved by an increase in oxygen delivery to the tissues. This is done both by enhance oxygen delivery to the tissues by the TST massage and through hyperbaric oxygen therapy.
Until March 2020, when planes stopped flying and COVID-19 lockdown restrictions were enforced, we had families from other European countries frequently visiting us for therapy, and had steadily become more widely known for both the promotion and quality of our service.
While being highly professional, our ethos emphasises human warmth, consideration and relaxation from stress for all who visit us. As a result of lockdown restrictions, we began teaching our therapeutic breathing based massage (TST) approach via Skype which proved to be very successful. We also began giving international outreach workshops through a remarkable group of philanthropists who also wish to bring conscious and kindness into all aspects of every-day life.
Via a Skype approach, we began the training of TST instructors in California (USA) and in the UK, this marks the beginning of a slow but steady consolidation of the therapy both in the UK and World-wide.
Our aim is to make TST and Hyperbaric Oxygen entirely understandable, accessible and affordable for all so that its health giving potential will continue to be available for the future generations.
**1**
## **Advance: The Institute for The Scotson Technique**
## **Report of the Trustees for the Year Ended 31 August 2020**
## **ACHIEVEMENTS AND PERFORMANCE (continued)**
The trustees recognise that Advance is performing a unique service by offering two therapies that integrate so well together we are consequently dedicated to ensure that these services remain available and affordable to the public, since we have seen they can improve quality of life over a wide range of conditions.
Our vision is to keep small and to keep going.
## **FINANCIAL REVIEW**
## **Income**
The Charity reports an income from charitable activities of £79,365 (2019: £67,727) and donations of £1,890 (2019: £3,666). The net expenditure was £2,630 (2019: £2,630).
The income from charitable activities shows an increase in the year because former patient account credits from previous years have been written off. The actual income from charitable activities decreased reflecting the continuing financial difficulties some families face, and the difficulty in reaching families in particular with cerebral palsy.+
## **Reserves policy**
For many years, the Trustees set the target level of reserves to maintain, where possible, sufficient reserves for up to 12 months expenditure in order to provide financial stability. The free reserves at 31 August 2020 were £69,736 (2019: £66,551). Although this amount is insufficient to cover 12 months of expenditure, the Trustees feel that the continued ongoing changes will help resolve the financial position.
## **Plans for the future and going concern**
The trustees and remaining workers in the charity are making every effort to keep expenditure low whilst remaining committed to the valuable work carried out. The trustees intend on building on the clear improvements made in the year under review having made some difficult decisions in recent years. The early signs have been encouraging and the trustees believe that an upturn in results will be evident as a result.
Having carefully considered the circumstances and financial commitments of the Charity, at the date of signing this report, the Trustees are, despite their concerns, of the opinion that the Charity is still a going concern.
At present the trustees are in the process of planning a number of fundraising events which will further lift the profile of the charity as well as allow more families to benefit from the services provided.
**2**
## **Advance: The Institute for The Scotson Technique**
## **Report of the Trustees for the Year Ended 31 August 2020**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
The charity is constituted by a 1993 Declaration of Trust and registered with the Charity Commissioners under charity number 1026049. The Trust Deed has been varied by a number of supplemental deeds and Scheme of the Charity Commissions dated 22 May 2001.
## **Structure, Governance and Management**
The Trustees continue to ensure that policies and procedures necessary for the introduction and assistance of any new Trustees follow the guidelines of the Charity Commission. Trustees are appointed on the basis of skills required and are recommended by existing trustees.
## **Organisational structure**
The Charity is run by a small team of dedicated employees who are responsible for the instruction of the therapeutic technique, the support of the families who bring their disabled children for assistance and the administrational organization. The day to day decisions are undertaken by the Charity’s Clinical Director and Manager, Ms Scotson prior to being discussed with the team during informal or formal staff meetings.
The trustees have ensured that all appropriate measures have been put in place to protect the Charity and its finances from major risks.
3
## **Advance: The Institute for The Scotson Technique**
## **Report of the Trustees for the Year Ended 31 August 2020**
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## **Registered charity name**
Advance: The Institute for The Scotson Technique
## **Other name used by the charity**
Advance
## **Registered Charity number**
1026049
## **Principal address**
The Bradbury House 6 Station Road East Grinstead West Sussex RH19 1DJ
## **Trustees**
Mr J Gardiner Mrs J Lawrence Mrs M Lyons
## **Independent Examiner**
Mr L W Woodhams FCCA TN6 Ltd Pine Grove Enterprise Centre Pine Grove Crowborough East Sussex TN6 1DH
## **Charity director**
Ms L Scotson
4
## **Advance: The Institute for The Scotson Technique**
## **Report of the Trustees for the Year Ended 31 August 2020**
## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES**
The charity trustees are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, of the charity for that period. In preparing the financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the applicable Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures that must be disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements.
Approved by the trustees on 29 June 2021 and signed on their behalf by:
............................................. John Gardiner Chairman
5
## **Advance: The Institute for The Scotson Technique**
## **Report of the Independent Examiner for the Year Ended 31 August 2020**
I report to the trustees on my examination of the accounts of the charity for the year ended 31st August 2020.
## **Responsibilities and basis of report**
As the charity's trustees, you are responsible for the preparation of the accounts in accordance with the requirements of The Charities Act 2011 (the Act). The charity's trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Act).
I report in respect of my examination of the charity’s accounts carried out under section 135 of the 2011 Act and in carrying out my examination, I have followed all the applicable directions given by the Charity
## **Independent examiner's statement**
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that in, any material respect:
- the accounting records were not kept in accordance with section 130 of the Charities Act; or
- the accounts did not accord with the accounting records; or
- the accounts did not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
…………………………………………
L W Woodhams FCCA TN6 Ltd Pine Grove Enterprise Centre Pine Grove Crowborough East Sussex TN6 1DH
Date: 29 June 2021
6
## **Advance: The Institute for The Scotson Technique Statement of Financial Activities for the Year Ended 31 August 2020**
**----- Start of picture text -----**
Unrestricted Restricted Total Total
Funds Funds 2020 2019
Notes £ £ £ £
INCOME
Donations 1,890 - 1,890 3,666
Investment Income 6 - 6 11
Charitable activities
-
TST physical programme 25,701 25,701 27,817
-
Hyperbaric oxygen 53,314 53,314 39,910
Other 350 - 350 -
Total income 81,261 - 81,261 71,404
EXPENDITURE
Charitable activities
TST physical programme 2 50,634 - 50,634 50,432
Hyperbaric oxygen 2 22,442 - 22,442 23,602
-
Total expenditure 73,076 73,076 74,034
NET INCOME/(EXPENDITURE) AND NET
MOVEMENT IN FUNDS FOR THE YEAR 8,185 - 8,185 (2,630)
RECONCILIATION OF FUNDS
Total funds brought forward 61,551 7,580 69,131 71,761
TOTAL FUNDS CARRIED FORWARD 69,736 7,580 77,316 69,131
**----- End of picture text -----**
The notes on pages 9 - 12 form part of these financial statements
7
## **Advance: The Institute for The Scotson Technique Balance sheet as at 31 August 2020**
**----- Start of picture text -----**
As at 31st August
Notes 2020 2019
£ £
FIXED ASSETS
Tangible assets 4 38,957 42,399
CURRENT ASSETS
Debtors 5 2,440 5,969
Cash at bank and in hand 39,436 42,733
41,876 48,702
CREDITORS
Amounts Falling Due Within One Year 6 3,517 21,970
NET CURRENT ASSETS 38,359 26,732
TOTAL ASSETS LESS CURRENT LIABILITIES 77,316 69,131
NET ASSETS 77,316 69,131
FUNDS
Restricted funds 7,580 7,580
Unrestricted funds 69,736 61,551
TOTAL FUNDS 77,316 69,131
**----- End of picture text -----**
Approved by the Trustees on 29 June 2021 and signed on their behalf by:
……………………………………………………..
John Gardiner
The notes on pages 9 - 12 form part of these financial statements
8
**Advance: The Institute for The Scotson Technique Notes to the Financial Statements for the year ended 31 August 2020**
## 1 **ACCOUNTING POLICIES**
## **Basis of preparation**
The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011. The trust constitutes a public benefit entity as defined by FRS 102.
## **Income recognition**
All incoming resources are included in the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.
Voluntary income is deferred if the donor has specified it must only be used in future accounting periods or the donor has imposed conditions which must be met before the Charity has unconditional entitlement.
## **Expenditure recognition**
Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## **Irrecoverable VAT**
Irrecoverable VAT is charged against the expenditure heading for which it was incurred.
## **Allocation and apportionment of support and governance costs**
Support and governance costs have been allocated based on incoming resources from charitable activities. The allocation of support costs is analysed in note 2.
## **Tangible fixed assets**
Fixed assets are included at cost less depreciation. Depreciation is provide at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - 4% on cost Plant and Machinery - 25% on cost Fixtures and Fittings - 25% on cost
Freehold land and property has not been depreciated this year as the Trustees believe the open market value of the property is in excess of the carrying value which is in accordance with the Charities SORP. Provision is made should any annual impairment review show that a permanent diminution in value of a property has occurred and is included in depreciation.
## **Taxation**
The charity is exempt from tax on its charitable activities.
9
## **Advance: The Institute for The Scotson Technique Notes to the Financial Statements for the year ended 31 August 2020**
## **1 ACCOUNTING POLICIES (continued)**
## **Fund accounting**
The Charity has a number of restricted income funds to account for situations where a donor requires that a donation must be spent on a particular purpose or where funds have been raised for a specific purpose. All other funds are unrestricted income funds. These funds are available for use in accordance with the charitable objectives at the discretion of the trustees.
## **Operating leases**
Rentals paid under operating leases are charged to the statement of financial activity on a straight line basis over basis.
|**CHARITABLE ACTIVITIES COST**
TST physical programme
Hyperbaric oxygen
TST physical programme
Hyperbaric oxygen|Direct
Support
Total
£
_£_
_£_
42,492
8,143
50,634
5,551
16,891
22,442
48,042
25,034
73,076
Direct
Support
Total
£
_£_
_£_
40,122
10,310
50,432
8,810
14,792
23,602
48,932
25,102
74,034
**Year ended 31st August 2020**
**Year ended 31st August 2019**|
|---|---|
## **2 CHARITABLE ACTIVITIES COST**
## **3 TRUSTEES REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the year ended 31 August 2020 (2019 - nil). Related party transactions are disclosed in note 7.
The Charity purchased trustee insurance on behalf of its trustees, within its annual insurance policy. The cost relating to this aspect of the insurance is approximately £500 (2019 - approximately £500).
10
## **Advance: The Institute for The Scotson Technique**
## **Notes to the Financial Statements for the year ended 31 August 2020**
## **4 TANGIBLE FIXED ASSETS**
|**Freehold**
**Improvements**
**to property**
**Plant and**
**machinery**
**COST**
At 1 September 2019
80,000
123,862
60,931
Additions
-
-
-
Disposals
-
-
-
At 31 August 2020
80,000
123,862
60,931
**DONATIONS RECEIVED**
At 1 September 2019
-
51,028
16,060
Additions
-
-
-
Disposals
-
-
-
At 31 August 2020
-
51,028
16,060
**DEPRECIATION**
At 1 September 2019
54,400
56,564
44,871
Charge for year
-
2,913
-
Disposals
-
-
-
At 31 August 2020
54,400
59,477
44,871
**NET BOOK VALUE**
At 31 August 2020
25,600
13,357
-
At 31 August 2019
25,600
16,270
-
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Trade debtors
Prepayments|**Fixtures and**
**fittings**
**Totals**
45,766
310,559
-
-
-
-
45,766
310,559
355
67,443
-
-
-
-
355
67,443
44,882
200,717
529
3,442
-
-
45,411
204,159
-
38,957
529
42,399
**2020**
**2019**
£
£
206
3,580
2,234
2,390
2,440
5,969|
|---|---|
## **5 DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
11
## **Advance: The Institute for The Scotson Technique Notes to the Financial Statements for the year ended 31 August 2020**
## **6 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
|Trade creditors
Other creditors and accruals|**2020**
**2019**
£
£
2,349
20,766
1,168
1,204
3,517
21,970|
|---|---|
## **7 RELATED PARTY DISCLOSURES**
Commissions were paid to the director, Linda Scotson, and her duaghter, Lili Scotson totalling £25,495 and £16,997 respectively, for treatments supplied.
No other trustee or person related or connected by business to them has received any remuneration during the year (2019 - none).
12
## **Advance: The Institute for The Scotson Technique Detailed income and expenditure account for the Year Ended 31 August 2020**
|**INCOME**
**Voluntary income**
Donations
**Investment income**
Deposit account interest
**Incoming resources from charitable activities**
TST physical programme
Hyberbaric oxygen
Other
**Total income**
**EXPENDITURE**
**Cost of generating voluntary income**
**Charitable activities - direct**
Clinical salaries
Social security
Clinical commissions
Purchases
Insurance
Bad debt written off
**Charitable activities - support**
Repairs and maintenance
Insurance
Light, heat and energy
Telephone and website
Printing, post, stat & advtsg
Repairs and renewals and cleaning
Travel
Advertising
Depreciation of tangible fixed assets
Sundry expenses
Bank charges
Professional fees
**Total expenditure**
**Net income/(expenditure)**|**2020**
1,890
6
25,701
53,314
350
79,365
81,261
-
-
-
42,492
4,701
850
2,800
50,842
-
3,316
5,748
3,029
871
1,847
276
516
3,442
71
1,054
2,064
22,234
73,076
8,185|**2019**
3,666
11
27,817
39,910
-
67,727
71,404
-
-
-
40,122
7,477
850
-
48,449
892
3,368
7,241
3,257
209
2,024
385
1,116
3,495
98
1,213
2,287
25,585
74,034
(2,630)|
|---|---|---|