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2020-12-31-accounts

Company number: 02966937 Charity number: 1042052

Annual Report and Financial Statements Year ended 31 December 2020

The Minster Centre 20 Lonsdale Road Queen’s Park London NW6 6RD

The Minster Centre Trustees’ report and financial statements for the year to 31 December 2020

Contents

1. Company Information ................................................................................................................. 3 2. Principal Aims And Activities ................................................................................................. 4 3. Review Of The Period ................................................................................................................. 5 4. Financial Review ......................................................................................................................... 14 5. Future Outlook For The Minster Centre ............................................................................ 17 6. Statement Of Responsibilities Of The Trustees ........................................................... 18 7. Independent Auditor’s report ................................................................................................ 20 8. Statement Of Financial Activities ........................................................................................ 24 9. Balance Sheet ............................................................................................................................... 25 10. Statement of Cash Flows ...................................................................................................... 26 11. Notes To The Financial Statements ................................................................................. 27

The Minster Centre

Trustees’ report and financial statements for the year to 31 December 2020

1. Company information

Trustees

Christopher Brooks (Treasurer, re-elected 18/12/18) Judith Burnett (elected 18/12/18, re-elected 11/12/20) Debbie Charles (elected 11/12/20) Norma Clayton (re-elected 18/12/18) Nick Carley (co-opted 17/11/17, elected 19/12/17, elected Chair 1/11/19, re-elected 11/12/20) David Collins (co-opted 17/11/17, elected 19/12/17, re-elected 11/12/20) Malcolm Couldridge (elected 20/12/17, elected Vice Chair 1/11/19, re-elected 11/12/20) Mark Gullidge (Staff Trustee, elected 18/12/18) Hannah Joll (Student Trustee, elected 18/12/18) Elizabeth Mpyisi (elected 19/12/19) Gavin Sharpe (elected 19/12/19) Sean Titley (elected 7/1/15, re-elected 19/12/17, re-elected 19/12/19) Felicity Wright (Director invited to join Board 25/1/19) Susanna Wright (elected 20/12/16, stood down as Vice Chair 1/11/19, reElected as a Trustee 19/12/19)

Company Secretary

Christopher Brooks

Senior staff

Director Lissie Wright Deputy Director Philip Reilly Deputy Director Alyson Jaffe

Company number: 02966937

Country of incorporation: United Kingdom Registered charity number: 1042052 Country of registration: England & Wales

Registered office and 20 Lonsdale Road business address: Queen's Park London NW6 6RD Auditor : Sayer Vincent LLP Invicta House 108-114 Golden Lane London EC1Y 0TL Bankers: CAF Bank Ltd 25 Kings Hill Avenue, Kings Hill, West Malling, Kent, ME19 4TA.

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The Minster Centre

Trustees’ report and financial statements for the year to 31 December 2020

The Trustees present their report and financial statements for the year ended 31 December 2020.

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice (SORP) - Accounting and Reporting by Charities applicable to charities preparing their accounts in accordance with Financial Reporting Standard (FRS) 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland.

2. Principal aims and activities

2.1 Aims and Objects

The Minster Centre’s principal aims and objects, as defined by the Memorandum and Articles of Association, are:

(a) to advance the education of the public by providing tuition and training programmes in individual and group psychotherapy for psychotherapists and counsellors and trainee psychotherapists and counsellors;

(b) to relieve persons suffering from mental, emotional and/or physical illness or distress by the provision of psychotherapy and counselling.

2.2 Public benefit statement

The Centre pursues these objects by providing training in counselling and psychotherapy and the provision of a community-based, affordable psychotherapy and counselling service.

Training at the Centre ranges from open-access introductory courses, through courses supporting professional registration with the British Association for Counselling and Psychotherapy (BACP) and the United Kingdom Council for Psychotherapy (UKCP) to post-qualification training and continuing professional development. Our professional training includes Masters degree programmes validated by Middlesex University. During 2020 over 350 people attended Foundation or higher levels of training at the Centre, a further 149 attended openentry Introduction to Counselling short courses and 114 people attended Continuing Professional Development events; a total of 613 people attended training at the Centre during the year.

The Centre strives to be as accessible as possible to people from different cultures and backgrounds and welcoming to trainees and service users from all ethnic communities, sexual orientations, genders, beliefs and cultures. We aim to make our training and services accessible for people with disabilities wherever possible.

The Centre provides the Helen Davis Bursary scheme to support people wishing to undertake training in psychotherapy and counselling who could not otherwise afford to do so. The scheme aims to support two students per annum on Foundation level courses and one new student per annum undertaking professional training as a counsellor or psychotherapist. Once students commence professional training they are supported to qualification. The Bursary Committee, which considers applications, has discretion to award these as fully funded or partially funded places or to award

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The Minster Centre

Trustees’ report and financial statements for the year to 31 December 2020

more bursaries for smaller amounts. In 2020 seven students benefitted from bursaries.

The training work of the Centre is integrated with the work of the Minster Centre Psychotherapy and Counselling service (MCPCS). The therapy is provided by senior trainees who are closely supervised, as part of their training, by in-house clinical supervisors. Clients of the service are charged fees based on their income. In 2020 we estimate this service provided over 4,000 therapy hours. The impact of the Covid-19 pandemic meant that the MCPCS devised new ways of working from March 2020, therapeutic work moved online, including initial assessments for therapy. We successfully implemented new systems of working within six weeks of the initial lockdown. As many services (in both the statutory and third sectors) were severely affected by the impact of the pandemic, the MCPCS has continued to be one of the few services offering affordable, long-term psychological support to clients.

3. Review of the period

3.1 Strategic aims and objectives for 2020

The Vision, Mission and Values statement for the Centre, agreed by the Board in 2019, are as follows.

Vision, Mission and Values

Our Philosophy

We believe that good therapy can support people to explore their whole selves. Integrative psychotherapy supports people to explore their conscious and unconscious, their thoughts, feelings, desires and beliefs alongside their personal and cultural histories, relationships and present environment.

Different theoretical approaches give powerful insights into what it means to be human, the factors that shape us, how psychological suffering arises and what can be done to alleviate it. We believe that many approaches have valuable contributions to make and that no single theory offers a complete account. As a result, we see integrative therapy as a process rather than the production of a fixed solution. We aim to train therapists who understand:

Vision

Integrative psychotherapy makes a valuable contribution to the wellbeing of individuals and society.

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The Minster Centre Trustees’ report and financial statements for the year to 31 December 2020

Mission

To contribute to the vigour of the profession and the practice of psychotherapy, improving individuals’ wellbeing by:

Values

We will strive to ensure that our actions are true to our beliefs by:

Strategic Aims

In November 2019 the Board agreed new Strategic Aims which set the direction for the work to be undertaken in the coming five years, commencing in 2020. The four aims are as follows.

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The Minster Centre

Trustees’ report and financial statements for the year to 31 December 2020

3.3. Activities and achievements in 2020

Two key challenges shaped 2020: continuing to offer high-quality training and services in the face of the Covid-19 pandemic and rising to our strategic intention to train therapists well equipped to work in a diverse society in the face our, and wider society’s, growing understanding of structural racism.

The Centre’s operational responses to Covid were driven by a commitment to students, clients and staff and maintaining the financial viability of the organisation. Further, considering our charitable aims, there was a recognition that there will be an increased need for counsellors and psychotherapists in the post-pandemic period and therefore a particular need for us to continue to offer training and services.

In response to the situation:

Training

The Minster Centre is one of the UKs leading organisations for the training of psychotherapists and counsellors; its courses are accredited by the main professional bodies: the Diploma in Integrative Counselling by the British Association of Counselling and Psychotherapy (BACP) and the Advanced Diploma/MA in Integrative Psychotherapy and Counselling by the United Kingdom Council for Psychotherapy (UKCP). The MA/PG Dip courses are validated by Middlesex

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The Minster Centre Trustees’ report and financial statements for the year to 31 December 2020

University. Courses are offered at all levels ranging from short open-entry counselling skills courses to qualifying and post-qualification post-graduate level courses. The structure and content of training and the quality of teaching is kept under regular review and adapted to reflect new developments in the field.

In March, as the impact of Covid-19 began to emerge, we closed our building a week before lockdown to protect staff, students and clients and to reduce travel, and began a rapid transition to offering seminars, clinical supervision and therapy services online. Over a very short period we set up a system and trained staff to teach and supervise online and we trained students to see clients online. We successfully offered training and therapy services online for the remainder of 2020 and continue to do so. Additional opportunities for student feedback have been put in place to ensure we maintain the quality of programmes offered – feedback has been good.

Alongside online delivery, over the summer, risk assessments were carried out and extensive work undertaken to allow safe use of the building for a blended training model. In the autumn term we were able offer some in-person training, prioritising modules and student groups that would most benefit. The intention was to maintain a blended model of training into 2021 but this had to be suspended as the situation worsened during the Christmas break. It is planned for some in person training to resume in April 2021. Feedback from students and staff is that we succeeded in offering well supported and high- quality training throughout 2020 and that the efforts of staff, particularly IT staff, to support this were recognised and appreciated.

The killing of George Floyd on May 25[th] caused distress to students and staff and highlighted, again, the low numbers of therapists and trainees of colour in the profession and the difficult experiences reported by trainees of colour, and from other under-represented groups, with regards to training at the Minster Centre and elsewhere. Although, we have been working to address the lack of diversity in the profession for a number of years we recognise that there is much work to be done to make training as a counsellor or psychotherapist as attractive and accessible to students of colour as it should be.

During 2020 the Diversity and Inclusivity Committee, a joint staff and student group that started work in 2019, established itself, agreeing terms of Terms of Reference and developing a rolling action plan. The process of developing the curriculum to integrate consideration of diversity and inclusivity more fully across all courses continued. The discussion of diversity and inclusivity is now introduced earlier in the training programme and more resources are included on the impact of discrimination on mental health and approaches beyond the established white, European, mostly male and middle-class texts. As the year progressed a Curriculum Sub-Committee began to grapple with how we go further, to develop a decolonised curriculum that challenges normative perspectives and trains therapists that are thoroughly prepared to work in our diverse country and to develop the profession.

In February we held the first Minster Centre Trainers’ forum, modelled on the Black, African and Asian Therapy Network (BAATN) Trainers’ forums, and externally facilitated. Very sadly one of the facilitators, Arike, died suddenly in June. He was a great loss to the profession. We have recently started regular reflective practice groups for teams (usually year groups) of training staff as a way of developing the work he and his partner Leah started with us. In 2021 we will seek external support for these groups. During 2020 we also continued our training programme for staff on

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The Minster Centre Trustees’ report and financial statements for the year to 31 December 2020

race awareness; during the year a further 16 staff attended White Awareness training and 17 more staff attended the Challenge of Racism in Psychotherapy training. A planned Gender Diversity training was postponed because the tutor was unable to return from abroad because of Covid restrictions.

During the year students and staff also established new student support groups, which were particularly important during periods of lockdown. Alongside the established Students of Colour group, we now have Queer, Jewish, Disability, Neurodiversity, Parents and Lone person groups. Staff of Colour also established a regular group.

During 2020 seven students benefitted from bursaries.

We also continued to engage with quality assurance processes. During 2020, and just before lockdown, our HE courses were reviewed by Middlesex University our validating partner. All courses were successfully reviewed. We received four commendations recognising our collaborative and collegiate approach:

There was also a recommendation to consider incorporating the weekend training days into the credit-rated modules and a requirement to update the documentation to clarify the Mental Health Familiarisation module learning outcomes and review the incorporation of climate change into a module.

Student recruitment

Interest in Minster Centre Courses remained strong in 2020 although we limited the numbers of students recruited in September 2020 to ensure we could manage social distancing when we were in the building and to manage group facilitation when working online. See Table 1 below for more information on student numbers.

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The Minster Centre

Trustees’ report and financial statements for the Year to 31 December 2020

Table 1: Student Numbers since 2016/17

Table 1: Student Numbers since 2016/17
2020/21 2019/20 2018/19 2017/18 2016/17
Foundation certificate 48 52 45 40 46
Fast Track Foundation certificate 37 38 34 38 38
Year 1 Professional Training 48 51 39 50 53
Year 2 Professional Training 46 48 45 47 45
Counselling Diploma finalists and MA/Adv Diploma
Year 3		 41 44 48 46 42
Adv Diploma and MA Finalists1 94 98 82 75 70
Supervision Diploma/PG Dip/MA 18 15 14 10 9
PG Dip/MA Advanced Clinical Practice 18 18 15 12 9
Total 3502 364 322 318 312

In addition, 149 students attended Introduction to Counselling skills short courses in 2020, and 114 people attended CPD events; making a total of 613 attendees who benefitted from Minster Centre training during the year.

1 Finalists for the Advanced Diploma and the MA in Integrative Psychotherapy and Counselling may take more than one year to complete their dissertation and case studies; this explains the larger numbers in this group.

2 Numbers of students admitted in 2020/21 were lower to ensure social distancing could be managed.

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The Minster Centre Trustees’ report and financial statements for the Year to 31 December 2020

Therapy Service

The Minster Centre continued to offer therapy through its Psychotherapy and Counselling Service (MCPCS).

During 2020, the MCPCS built on the work undertaken in 2019 and increased the number of clients accessing therapy through the service. From January 2020 to date, we have received 450 enquiries and have allocated 125 clients to senior students for long-term therapy (up from 79 clients the previous year).

The impact of the Covid-19 pandemic meant that the MCPCS devised new ways of working from March 2020, when we temporarily closed our building. All therapeutic work moved online, including initial assessments for therapy. We successfully implemented new systems of working within six weeks of the initial lockdown in March 2020. This has continued to expand the geographical parameters of the service and meet, at times, the needs of clients across the UK, who may have been unable to access affordable therapy prior to the pandemic.

Many services (in both the statutory and third sectors) were severely affected by the impact of the pandemic, the MCPCS has continued as one of the few services offering affordable, long-term psychological support to clients. With the closure of some third-sector services and an overwhelming demand for NHS services, which often offer short-term support, the MCPCS is receiving a higher number of complex and severe client presentations, some of which we redirect to services which are more suitable for complex needs.

Staff

The Trustees delegate the Centre’s day-to-day operations to the Director and her team of staff. The Centre employs permanent staff to run the operation and a large team of highly qualified and experienced tutors who are all practicing therapists.

During 2020 all staff worked exceptionally hard to meet the challenges posed by the pandemic, mastering new skills and working flexibly to support moving training and therapy provision online and then to provide blended learning to students. The IT staff, the Operations Manager and Deputy Operations Manager and Heads of Year/Courses warrant particular mention for their dedication and determination which allowed the Centre to continue to provide high quality training and therapy services. When we closed the building, all staff were supported to work from home with a small number of staff who lived locally coming into the building, with appropriate risk assessment, to attend to essential tasks. A small number of staff who normally provide cleaning and reception services were furloughed for parts of the year and other staff were redeployed to support online working. During the summer, we made the decision to transfer our cleaning arrangements to a contract to ensure that we could meet and maintain Covid-secure requirements in the autumn term. Our two cleaning staff transferred to the contractor under arrangements that retained their existing terms and conditions.

During the year two very long-standing members of staff, Sue Murphy and Adella Shapiro, retired from their tutor roles and, very sadly, Sue Daniels who had worked for the Minster Centre for very many years and indeed trained some of the current staff team, became ill during the summer term shortly before she was due to retire and died in August. She will be very much missed by her colleagues and students.

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The Minster Centre Trustees’ report and financial statements for the Year to 31 December 2020

Two members of staff, Roz Carroll and Shoshi Asheri, took full sabbaticals for the academic year 2020/21 to write books or develop research. Both have recently decided they need more time to complete that work and will not return in the immediate future, although we hope to maintain our contact with them. In addition, Stephen Callus took a sabbatical from his role as Head of Foundation but has continued to work with us as a clinical supervisor.

The Centre has a long-term commitment to support and develop a diverse staff. As part of that we have sought to increase the numbers of staff of colour working for the organisation by advertising all training posts with BAATN. The proportion of staff of colour within the team has steadily increased from around 11% in 2017 to 20% in 2020/21.

3.5 Remuneration Policy

The Minster Centre needs to recruit and retain staff with a wide range of skills. As a relatively small organisation working in a specialist field, it needs to be led by senior staff who have specialist knowledge in the fields of psychotherapy, training and therapeutic service delivery combined with organisational and business expertise.

Although the Minster Centre is not a London Living Wage-accredited employer it does seek to ensure that all staff are paid at least the London Living Wage.

The same benefits, including pensions and terms and conditions, apply to all staff including the Director. The Centre does not apply any performance-related pay and does not have a bonus scheme. The same appraisal system applies to all permanent staff.

The ratio of highest to lowest and highest to median rates of pay is published annually. As a guideline, the Trustees would not normally expect the ratio of highest to median rate of pay to exceed 4:1. In 2020 the ratio of highest to lowest pay was 3.2 (3.2 in 2019) and highest to median rate of pay was 2.2 (2.3 in 2019).

Senior staff pay is determined by the Remuneration Sub-Committee (RSC) taking into account comparisons with national charity pay levels, remuneration in Higher Education and the ratios of highest to lowest and highest to median rates of pay. The RSC also agrees and annually reviews the overall approach to staff pay and any annual pay increases within the context of the Centre’s financial position and strategic priorities, the cost of living, recruitment and retention rates.

3.6 Governance

The Board meets at least five times each year to discuss progress in relation to strategic aims, monitor performance and agree future budgets, targets and priorities. The Director also attends at least four Finance Sub-Committees (FSC) per year and regularly meets more informally with the Chair of Trustees. In 2020 the Board met six times and the FSC meet weekly in March and April and then at least monthly for the remainder of the year to review the situation in the light of the impact of Covid, paying particular attention to cash flow.

Recruitment and induction of Trustees

The arrangements for the appointment of Trustees are laid down in the charity’s Mem & Arts. Under the revised Mem & Arts there must be a minimum of seven Trustees and a maximum of 14. Up to 10 Independent Trustees are nominated and

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The Minster Centre Trustees’ report and financial statements for the Year to 31 December 2020

elected by the Members, one Staff Trustee is nominated and elected by the Centre’s staff and one Student Trustee by students attending courses that last more than one year. Members, for the purposes of elections, are: Trustees, alumni of Minster Centre professional training courses and individuals who have been granted honorary membership.

Each year one-third of the independent Trustees must resign. Trustees serve for periods of three years and can stand for re-election up to a maximum period of nine years. Elections for Trustees are therefore held annually. In the event of there being a vacancy for the position of a Trustee between elections, the Board of Trustees may co-opt a Trustee. Co-opted Trustees then go forward for confirmation at the next scheduled election.

Nominations for Trustees are sought by advertising on the website, to the Membership, and through suitable other organisations, such as BAATN, and Trustee recruitment sites.

At the start of 2020 there were 13 trustees: Nick Carley (Chair), Malcolm Couldridge (Vice Chair), Christopher Brooks (Treasurer), Judith Burnett, Norma Clayton, David Collins, Mark Gullidge (Staff Trustee), Hannah Joll (Student Trustee), Elizabeth Mpyisi, Gavin Sharpe, Sean Titley, Lissie Wright (Director) and Susanna Wright.

The Staff Trustee and the Director are paid their salaries at the agreed rates and receive no additional fees or benefit for serving as trustees. The Student Trustee pays fees at the same rate as all other students and receives no additional benefits for serving as a trustee.

In preparation for the annual elections, the composition of the Board was discussed at the November 2020 meeting. Nick Carley, Malcolm Couldridge, Judith Burnett and David Collins stood for re-election (and were duly re-elected on 11/12/20). As there is space for 14 Trustees, the Board were invited to comment on the additional skillsets they thought would be beneficial in a new Board member. They identified online training expertise, legal or commercial property expertise and fundraising alongside an ongoing commitment to equality, diversity and inclusion, which they would like to see reflected in the composition of its Board. Advertisements therefore identified that nominations from people from black and minority ethnic communities, the LGBT+ community, care leavers and from disabled people would be particularly welcomed. Debbie Charles (who brings 25 years experience as a psychotherapist, supervisor and group facilitator both in the UK and Canada and a long-standing commitment to promote equality, diversity and inclusivity within the psychotherapy profession) was nominated and elected as a new Trustee.

This brings the Board up to its full complement of 14.

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The Minster Centre Trustees’ report and financial statements for the Year to 31 December 2020

4. Financial Review

4.1 Financial performance in 2020

In 2020 the charity had income of £ 1,558,329 and expenditure of £ 1,590,991 resulting in a deficit of £32,662 for the year. The Centre carried forward funds of £478,831.

Income from training, therapy and membership activities was strong, partially offsetting the reduction of £87,000 in room bookings income that resulted from ceasing therapy room hire in March 2020. Room hire has not yet restarted.

Direct costs overall were over budget and this was driven principally by an increase in spend on training staff salaries. This reflects both increased activity and additional work to support the response to Covid and our focus on Diversity and Inclusion.

Expenditure on overheads overall was as budgeted, but reflects much higher spending in some areas and reduced spending on others. These reflect the adaptions to Covid, with increased costs, for instance, on software to support online working and cleaning to provide a Covid safe environment, and some reduced costs, for instance photocopying, when the building was not being used. The largest item, staff costs, was close to budget although this perhaps does not fully reflect the staff’s efforts (tutors and operational staff) to keep us operating throughout the year.

Given the extraordinary year the final position is better than we hoped for midyear. It reflects the ongoing demand for the Minster Centre’s training, our capacity to respond flexibly and the students’ commitment to their training. Much has been learnt which will feed in to how we operate in the future.

4.2 Fundraising

The Centre does not undertake significant fundraising although in previous years small donations have been received towards bursaries and external funding for bursaries is an area we plan to develop in the future. It does not currently set fundraising targets and does not incur material expenditure to fundraise; nor does it engage professional fundraisers, commercial participators or third-party fundraisers. No complaints about fund raising activities were received during 2020.

4.3 Reserves Policy

The Minster Centre holds reserves to ensure that it has sufficient funds to cover periods when income is relatively low, that it can meet its obligations to allow students to complete training courses they have started, and that it can meet its ethical obligations to clients by ensuring any therapeutic services that may have to be closed or reduced can be brought to planned and supervised completion.

The level and range of reserves the charity needs were re-assessed at the end of the year using the Risk Identification approach as recommended by Sayer Vincent’s Reserves policies made simple. This considers the sources, reliability and predictably of income, the commitment to expenditure and the significant risks the charity faces. In addition, consideration has been given to developments that the charity wishes to undertake given its strategic aims. Particular attention was paid to the reviewing the level of funds needed to ensure that if a course was closed students already on the course would be able to complete it and to maintain access to suitable premises.

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The Minster Centre Trustees’ report and financial statements for the Year to 31 December 2020

Cash Flow

Monthly cash flow varies primarily because of the cycle of fee income and the timing of quarterly rent payments and Middlesex University student registration fees. Although many students spread their fee payments across the academic year producing a good flow of income across the months, some pay up-front creating an income peak in September and October that has to support deficits in other months. The Trustees agreed that cash flow should be monitored regularly with action taken to ensure sufficient cash at bank and in hand to meet average monthly expenditure of £126,000.

Income

Although income from training fees forms a very high proportion of overall income and would fall if student recruitment fell, this risk is moderated by the fact that fees come from a large number of individuals, we offer a range of courses at different levels and some courses run for more than one year making income in following years more predictable.

The Trustees have previously agreed that we should seek to diversify sources of income including increasing income from room bookings and client fees as additional, but modest, sources of income. Considerable progress had been made on this with income from room bookings increasing from £40,000 in 2014 to close to £115,000 in 2019 and client fees from £35,000 in 2014 to £93,000 in 2019. The increases were the result of both more effective tracking and collection of income and of increased activity. In 2020 room bookings ceased in March when we closed the building and have not yet restarted, due to repeated lockdowns and the constraints imposed by offering a Covid-safe environment for training in the same building. When we do re-start offering rooms for therapy we will need to rebuild this income stream. In contrast, as we successfully supported a transfer to online therapy for many existing MCPCS clients and were able to offer an online service to new clients, income from client fees was maintained and increased slightly during 2020 to £96,000. In future it is likely that we will offer both in-person and online therapy services potentially increasing income from client fees.

Expenditure

All the Centre’s expenditure is related to its charitable activities. If necessary, the range and scope of delivery could be reduced without negating all public benefit.

Risks

The charity undertakes regular reviews to identify and reduce significant risks. Risks that could impact the charity’s viability have been identified as: a major reduction of student applications, significant damage to the charity’s reputation and a large increase in the charity’s fixed costs.

To reduce these risks, the Trustees and The Minster Centre’s management have identified actions that include:

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The Minster Centre Trustees’ report and financial statements for the Year to 31 December 2020

Level of reserves

It is a requirement of OfS registration that we have a student protection plan. The Board of Trustees continues to be committed to ensuring that, in the event of cessation of a course or a service, students can complete courses they have commenced or, where possible, be transferred to an alternative course and any client work can be brought to an appropriate ending. In the event of a major reduction in recruitment which leads the Centre to take the decision to close a course that takes more than one year to complete, the Centre is committed to teaching trainees to qualification. The direct costs of maintaining tuition for courses that take more than one year and the linked support costs would taper off as each cohort of students completed their qualification. Continuing fees from the remaining students would offset costs. When a course or service finally closed staff redundancy might be incurred. The FSC has reviewed with the auditors the level of designated reserve funds needed to cover costs incurred in teaching out a course or closing or reducing MCPCS and agreed that an ethical closure fund of £200,000 should be held (previously £260,000).

In addition, the FSC decided to retain the Premises fund, which is held to support additional premises costs or changes but reduce it from £125,000 to £100,000. In addition, the £30,000 designated fund for course development was retained.

Therefore at the end of 2020 reserves stood at:

Unrestricted designated funds Ethical closure £200,000 Premises £100,000 Bursaries £15,000 Course development £30,000 Total designated funds: £345,000 General reserves: £133,831 Total reserves: £478,831

The general reserves of £133,831 cover tangible assets of £31,357.

The Trustees will continue to keep The Minster Centre’s reserves under review annually. If it looks as though reserves will be in excess of identified need, steps will be taken to support activities planned to meet the identified strategic aims.

4.4 Going concern

During the audit process the FSC, on behalf of the Board of Trustees, reviewed the level of reserves and cash held, the budget for 2021 and 2022, and the level of debtors, deferred income and on-going fees. They also considered the level of

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The Minster Centre Trustees’ report and financial statements for the Year to 31 December 2020

interest in Minster Centre courses and external factors including the impact of Covid19, Brexit, an economic downturn and workforce availability. These considerations were shared with the auditors. FSC and the Board have satisfied themselves that there are no material uncertainties and the Minster Centre is a going concern.

Having reviewed Charity Commission guidance on reserves, cashflow and the level of reserves, the Board is satisfied that there are no material uncertainties affecting the Centre, and so can conclude that it has a reasonable expectation that it will be a going concern for the foreseeable future, deemed to be 12 months from approving these accounts.

5. Future outlook for the Minster Centre

5.1 Future strategic direction

During 2019 the Board set the Centre’s strategic aims for the period 2019-2024 and identified four key strands.

Increasing the Minster Centre’s ability to reach a wide range of people – Activities to achieve this will include increasing the range of events, short courses and resources offered to the public, adding accessible resources to the website and developing research at the Minster Centre that provides greater insight into client and therapist experience in a diverse society.

Training therapists who are particularly well equipped to work in a diverse society – Activities will include continuing to increase the diversity of students attending Minster Centre training to reflect more fully wider society. As a target, by 2024, we are aiming for a student body that reflects the demographics of the Greater London population in terms of ethnicity and disability as BAME and disabled therapists are particularly under-represented in the profession. We will also revise our curriculum, learning resources and CPD offerings to increase the competence of Minster Centre graduates and members to work with clients from diverse communities.

Offering accessible and affordable services to a diverse community – As a target we will seek to increase the number of clients using MCPCS or Minster Centre partner services by 20% by 2024 and work with specialist partners to support access for groups that find it harder to access therapy, for example some BAME groups and clients with disabilities.

Managing the Minster Centre for sustainability and growth – We will seek to ensure that courses are full to ensure a sustainable income that will support the development of the Centre whilst maintaining an ethos of experiential training. We will also seek to ensure a strong pool of candidates for key leadership roles (succession planning) by appointing a further Deputy Director and reviewing the roles and terms of employment of Heads of Year/Course Leaders. We will plan to ensure that the Centre has secure and sustainable premises beyond 2023 (rent review) and 2028 (end of current lease).

5.2 Principal risks and uncertainties

The Trustees carry out an annual risk assessment, agreeing measures to mitigate risks that would be high impact and/or have a high probability of occurrence. Risk assessment includes consideration of strategic, financial, operational, technological, human resource, and reputational risks. It also includes the duty, under the CounterTerrorism and Security Act 2015, to have due regard to the need to prevent people

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The Minster Centre Trustees’ report and financial statements for the Year to 31 December 2020

from being drawn into terrorism (the Prevent Duty). In addition to the annual review, identified risks are reviewed at Board meetings..

Key risks identified for 2020 onwards, with their mitigation measures, include:

6. Statement of responsibilities of the Trustees

The Trustees (who are also directors of The Minster Centre for the purposes of company law) are responsible for preparing the Trustees’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

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The Minster Centre Trustees’ report and financial statements for the Year to 31 December 2020

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Trustees of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 December 2019 was 14 The Trustees are members of the charity but this entitles them only to voting rights. The Trustees have no beneficial interest in the charity.

Auditor

Sayer Vincent LLP was the company’s auditor during the year.

This report was approved by the Trustees on 23 April 2021 and signed on its behalf by:

Nick Carley Chair

19

The Minster Centre Independent auditor’s report to the members of The Minster Centre

Opinion

We have audited the financial statements of the Minster Centre (the ‘charitable company’) for the year ended 31 December 2020 which comprise the statement of financial activities, balance sheet, statement of cash flows 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 FRS 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 charitable company 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.

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 Minster Centre'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

20

The Minster Centre Independent auditor’s report to the members of The Minster Centre

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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the charitable company for the purposes of company law) 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 charitable company’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 charitable company or to cease operations, or have no realistic alternative but to do so.

21

The Minster Centre Independent auditor’s report to the members of The Minster Centre

Auditor’s responsibilities for the audit of the financial statements

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 are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

22

The Minster Centre Independent auditor’s report to the members of The Minster Centre

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: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Judith Miller (Senior statutory auditor) 20 July 2021 for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

23

The Minster Centre

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 December 2020

Income from:
Note
2
3
Reconciliation of funds:
18
Charitable activities
Training Activities
Minster Centre Psychotherapy & Counselling Service (MCPCS)
Total expenditure
Charitable activities
Room Hire ,Membership Income & JRS grant
Training Activities
Minster Centre Therapy Service
Investment interest
Total income
Expenditure on:
Donations
Total funds carried forward
Net movement in funds
Total funds brought forward		 Unrestricted
£
1,406,345
-
95,876
54,359
1,749		 2020
2019
Total
Total
Restricted &
Unrestricted
£
£
1,406,345
1,280,959
-
255
95,876
93,194
54,359
127,980
1,749
1,783
1,558,329
1,504,171
1,535,821
1,447,322
55,171
64,177
1,590,991
1,511,499
(32,662)
(7,328)
511,493
518,821
478,831
511,493
1,558,329
1,535,821
55,171
1,590,991
(32,662)
511,493
478,831

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 18a to the financial statements. All activity in 2020 was unrestricted. In 2019 a donation of £255 was restricted.

24

The Minster Centre

Company no. 02966937

Balance sheet

As at 31 December 2020

Note
£
Fixed assets:
11
Current assets:
12
468,470
91,305
713,442
1,273,217
Liabilities:
13
825,744
17
345,000
133,831
Total unrestricted funds
Cash at bank and in hand
Investments
Tangible assets
Debtors
Restricted income funds:
Unrestricted income funds:
Donations to Bursary fund
Total net assets
Designated funds
General funds
Total charity funds
The funds of the charity:
Creditors: amounts falling due within one year
Net current assets		 Note
£
Fixed assets:
11
Current assets:
12
468,470
91,305
713,442
1,273,217
Liabilities:
13
825,744
17
345,000
133,831
Total unrestricted funds
Cash at bank and in hand
Investments
Tangible assets
Debtors
Restricted income funds:
Unrestricted income funds:
Donations to Bursary fund
Total net assets
Designated funds
General funds
Total charity funds
The funds of the charity:
Creditors: amounts falling due within one year
Net current assets		 2020
£
£
31,357
31,357
524,838
90,626
640,605
1,256,069
785,446
447,474
478,831
-
430,000
79,336
478,831
478,831		 2019
£
40,870
40,870
470,623
1,273,217
825,744
345,000
133,831
511,493
2,157
509,336
511,493

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Approved on 23 April 2021 and signed by:

Nick Carley Chair

Felicity Wright Accountable officer

25

The Minster Centre

Statement of cash flows

For the year ended 31 December 2020

For the year ended 31 December 2020
Note 2020 2019
£ £ £ £
Cash flows from operating activities
Net cash provided by operating activities 19 71,768 72,715
Cash flows from investing activities:
Interest from investments 1,749 1,783
Movement in investments (679) (551)
- -
Net cash provided by/ (used in) investing activities 1,070 1,232
Change in cash and cash equivalents in the year 72,837 73,946
Cash and cash equivalents at the beginning of the year 640,605 566,659
Cash and cash equivalents at the end of the year 20 713,442 640,605

26

The Minster Centre

Notes to the financial statements

For the year ended 31 December 2020

1 Accounting policies

a) Statutory information

The Minster Centre is a charitable company limited by guarantee and is incorporated in the United Kingdom. The registered office address and principal place of business is 20 Lonsdale Road, Queen's Park, London NW6 6RD.

b) Basis of preparation

The financial statements 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) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The charity complies with the Office for Students Regulatory advice 9: Accounts direction effective for accounting periods commencing on or after 1 August 2019.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

c) Public benefit entity

The charitable company meets the definition of a public benefit entity under FRS 102.

d) Going concern

The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern.

Key judgements that the charitable company has made which have a significant effect on the accounts include a thorough and detailed review of income & expenditure, and the annual review of risks and mitigation measures.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

e) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

f) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

g) Investments

Scottish Widows deposit, 1 year fixed term, Maturity 14 January 2021. Interest rate 0.25% gross AER.

h) Fund accounting

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

27

The Minster Centre

Notes to the financial statements

For the year ended 31 December 2020

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity heading:

j) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. Support and governance costs are re-allocated to each of the activities on the following basis which is an estimate, based on staff time, of the amount attributable to each activity.

96.0% 4.0%

Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

k) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

l) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £1,000. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

22.20% 25% 25% 25%

m) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

n) Cash at bank and in hand

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 acquisition or opening of the deposit or similar account. One year term deposits are accounted for as current asset investments.

28

The Minster Centre

Notes to the financial statements

For the year ended 31 December 2020

p) Financial instruments

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.

q) Pensions

The Minster Centre operates a defined contribution automatic enrolment pension scheme managed by The People's Pension. Contributions are accounted for as expenditure as they fall due.

29

The Minster Centre

Notes to the financial statements

For the year ended 31 December 2020

2
Donations
Grant income from the OfS
Grant income Job Retention Scheme
Fee income for Room hire & membership fees
Fee income for MCPCS
Fee income for taught awards
Fee income from non-qualifying courses
Total grant and fee income
Analysis of Income		 2020
2019
£
£
-
255
-
-
13,971
-
40,388
127,980
95,876
93,194
429,686
423,098
976,659
857,861
1,556,580
1,502,388

30

The Minster Centre

Notes to the financial statements

For the year ended 31 December 2020

3a Analysis of expenditure (current year)

Charitable activities

Staff costs (Note 7)
Direct cost
QAA costs
1) Withdrawn/Deferred
Room hire costs
Bursaries
Minster Fund (Hardship fund)
Support and governance costs:
2)
Premises costs
Office costs
Professional costs
Marketing
Bank charges
Other staff costs
Audit and accountancy
Trustee meeting expenses
Support costs
Governance costs
Total expenditure 2020
Total expenditure 2019		 Training
£
1,045,796
41,825
3,485
46,947
20
18,633
4,700
-
-
-
-
-
-
-
-		 MCPCS
£
38,330
1,746
-
-
-
-
-
-
-
-
-
-
-
-
-		 Governance
costs
£
-
-
-
-
-
-
-
-
-
-
-
-
-
11,760
-		 Support
costs
£
-
-
-
-
-
-
-
289,321
72,940
114
7,741
1,494
6,125
-
15		 2020 Total
£
1,084,127
43,571
3,485
46,947
20
18,633
4,700
289,321
72,940
114
7,741
1,494
6,125
11,760
15		 2019 Total
£
1,015,874
15,416
1,775
44,900
15
24,919
3,439
286,923
72,090
34
15,354
2,709
16,701
11,160
189
1,161,407
362,654
11,760		 40,076
15,095
-		 11,760
-
(11,760)		 377,749
(377,749)
-		 1,590,991
-
-		 1,511,498
-
-
1,535,821 55,171 - - 1,590,991 1,511,498
1,447,322 64,177 - - 1,511,499

All expenditure in 2019 and 2020 was unrestricted.

31

The Minster Centre

Notes to the financial statements

For the year ended 31 December 2020

3b Analysis of expenditure (prior year)

Charitable activities
Governance Support
Training MCPCS costs costs 2019
Total		 2018
Total
£ £ £ £ £ £
Staff costs (Note 7) 968,830 47,044 - - 1,015,874 856,083
Direct cost 15,160 256 - - 15,416 45,056
QAA costs 1,776 - - - 1,776 5,480
1) Withdrawn/Deferred 44,900 - - - 44,900 23,619
Room hire costs 15 - - - 15 -
Bursaries 24,919 - - - 24,919 2,643
Hardship grants 3,439 - - - 3,439 1,950
Support and governance costs:
Premises costs - - - 286,923 286,923 176,169
Office costs - - - 72,090 72,090 41,488
Professional costs - - - 34 34 180
2) Marketing - - - 15,354 15,354 8,087
Bank charges - - - 2,709 2,709 2,034
Other staff costs - - - 16,701 16,701 5,036
Audit and accountancy - - 11,160 - 11,160 10,350
Trustee meeting expenses - - 189 - 189 295
1,059,040 47,300 11,349 393,810 1,511,499 1,178,470
Support costs 376,933 16,877 - (393,810) - -
Governance costs 11,349 - (11,349) - () -
Total expenditure 2019 1,447,322 64,177 - - 1,511,499
1		 1,178,470

32

The Minster Centre

Notes to the financial statements

For the year ended 31 December 2020

4 Grant making

Grant making
Training bursaries & hardship funds
At the end of the year
Cost		 Grants to
individuals
£
23,333		 Support costs
£
-		 2020
2019
£
£
23,333
24,919
23,333
24,919
23,333 -

All grants made in 2020 were to individuals.

5 Access and participation expenditure

Declaration of expenditure on access and particiipation is a requirement of the Office for Students (OfS) for HE instituitions that have an agreed Access and Participation Plan. The Minster Centre does not have an agreed OfS Access and Participation Plan because it does not offer any undergraduate programmes.

6 Net outgoing resources for the year

This is stated after charging / crediting:

This is stated after charging / crediting:
2020 2019
£ £
Depreciation 9,513 15,682
Operating lease rentals:
Property 247,466 249,078
Auditor's remuneration (excluding VAT):
Annual audit 9,400 9,300

7 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Staff costs were as follows:

Employer’s contribution to defined contribution pension schemes
Self-employed
Staff costs
Social security costs		 2020
2019
£
£
34,712
48,536
969,064
894,542
65,405
58,579
14,946
14,217
1,084,127
1,015,874

Staff costs rose in 2020 because of an increase in short courses and a transition to working from home, which included more IT support.

No employee earned more than £60,000 during the year (2020: nil).

Key management personnel are the Minster Centre Senior Management Team. This consists of one Director and two Deputy Directors. All three posts are part-time. The total employee benefits (including pension contributions and employer's national insurance) to the Senior Management Team in 2020 were £113,704 (2019 £127,498).

33

The Minster Centre

Notes to the financial statements

For the year ended 31 December 2020

8 Senior staff pay

In the year (2019 - Nil) the charity had no staff paid over £100,000, based on a full time equivalent basis.

The head of the provider's remuneration details are as set out below;

Basic salary
Payments in lieu of pension contributions
Performance related pay
Pension contributions
Salary sacrifice
Other taxable benefits
Non-taxable benefits		 2020
2019
£
£
46,058
45,288
-
-
-
-
1,195
1,176
-
-
-
-
-
-
47,253
46,464

The same individual held the post during both periods.

There were no taxable or non-taxable benefits.

The head of the provider's remuneration is determined by the Remuneration Sub-Committee (RSC) taking into account comparisons with national charity pay levels, remuneration in Higher Education, and the ratios of highest to lowest and highest to median rates of pay in the Centre taking into account the Centre’s financial position and strategic priorities, cost of living increases, recruitment and retention rates.

The head of the provider's total remuneration is 2.2 times (2019 - 2.3 times) the median total remuneration of staff, where the median total remuneration is calculated on a full-time equivalent basis for the total remuneration by the provider of its staff and 3.2 times the lowest rate of pay.

No staff received severance payments during the year (2019 - £0).

9 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was as follows. Full-time equivalent (FTE) numbers are also given:


Full-time equivalent (FTE) numbers are also given:
Therapy Service
Training Activities
Governance
Support		 FTE
No.
No.
53.7
11
2.0
1.7
11.7
7.2
1.3
0.6
68.7
20.6
Headcount
2020		 Headcount
FTE
No.
No.
38.8
10.8
2.0
1.7
10.7
7.0
1.3
1.3
52.8
20.8
2019
68.7 20.6

34

The Minster Centre

Notes to the financial statements

For the year ended 31 December 2020

10 Related party transactions

Payments for supply of goods or services by trustees comply with the Articles of Association page 4 & 5, Section 7.

The charity trustees were not paid nor received any other benefits from employment with the charity in the year (2019: £nil).

Staff Trustee Mark Gullidge & the Director Lissie Wright received their salaries but no additional payments in respect of their role as Trustees.

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £15 was incurred by one member relating to attendance at meetings of the trustees (2019: £449 relating to four trustees).

There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.

11 Tangible fixed assets

Net book value
Cost or valuation
At the start of the year
At the end of the year
At the start of the year
At the end of the year
At the start of the year
Charge for the year
Depreciation
Net book value
At the end of the year		 Leasehold
improvements
£
276,715		 Fixtures and
fittings
£
9,318		 Computer
equipment
£
5,206		 Office
equipment
£
6,787		 Total
£
298,026
276,715 9,318 5,206 6,787 298,026
237,856
8,628		 9,318
-		 3,704
376		 6,278
509		 257,156
9,513
246,484 9,318 4,080 6,787 266,669
30,231 - 1,126 - 31,357
38,859 - 1,502 509 40,870

All of the above assets are used for charitable purposes.

12 Debtors

Trade debtors
Prepayments		 2020
2019
£
£
391,762
448,345
76,708
76,493
468,470
524,838
Accruals
Deferred income
Trade creditors
Taxation and social security
Other creditors		 2020
2019
£
£
9,764
6,715
28,715
5,704
63,354
34,491
33,977
28,490
689,934
710,046
825,744
785,446

35

The Minster Centre

Notes to the financial statements

For the year ended 31 December 2020

14 Deferred income

Deferred income comprises student invoices covering an academic year. Since invoices are issued in September of each year, one third is shown in the income for that year and two thirds are deferred until the following year.

Balance at the beginning of the year
Amount released to income in the year
Amount deferred in the year
Balance at the end of the year		 2020
2019
£
£
710,046
658,598
(710,046)
(658,598)
689,934
710,046
689,934
710,046

15 Pension scheme

The Minster uses The People's Pension scheme as its sole provider. 44 employees were enrolled in the scheme December 2020 (2019: 35).

16 Taxation

The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

17a Analysis of net assets between funds (current year)

Tangible fixed assets
Net current assets
Net assets at the end of the year		 General
unrestricted
£
31,357
102,474		 Restricted
Total funds
£
£
£
-
-
31,357
345,000
-
447,474
345,000
-
478,831
Designated
133,831 345,000

17b Analysis of net assets between funds (prior year)

Tangible fixed assets
Net current assets
Net assets at the end of the year		 General
unrestricted
£
40,870
38,466		 Restricted
Total funds
£
£
£
-
-
40,870
430,000
2,157
470,623
430,000
2,157
511,493
Designated
79,336 430,000

36

The Minster Centre

Notes to the financial statements

For the year ended 31 December 2020

18a
Total restricted funds
Total designated funds
General funds
18b
Total designated funds
General funds
Restricted funds:
Donations to bursary fund
Total unrestricted funds
Movements in funds (current year)
Unrestricted funds:
Designated funds:
Course Development
Ethical Closure
Bursary fund
Total funds
Premises
Total unrestricted funds
Unrestricted funds:
Designated funds:
Course Development
Premises
Ethical Closure
Bursary fund
Total funds
Movements in funds (prior year)		 At the start of
the year
£
2,157		 Income &
gains
£
-		 Expenditure
& losses
£
(2,157)		 Transfers
£
-		 At the end
of the year
£
-
2,157 - (2,157) - -
30,000
125,000
260,000
15,000		 -
-
-
-		 -
-
-
(21,176)		 -
(25,000)
(60,000)
21,176		 30,000
100,000
200,000
15,000
430,000 - (21,176) (63,824) 345,000
79,336 1,558,329 (1,567,658) 63,824 133,831
509,336 1,558,329 (1,588,834) - 478,831
511,493 1,558,329 (1,590,991) - 478,831
At the start of
the year
£
30,000
125,000
260,000
15,000		 Income &
gains
£
-
-
-
-		 Expenditure
& losses
£
-
-
-
(24,919)		 Transfers
£
-
-
-
24,919		 At the end
of the year
£
30,000
125,000
260,000
15,000
430,000 - (24,919) 24,919 430,000
86,919 1,503,916 (1,486,580) (24,919) 79,336
516,919 1,503,916 (1,511,499) - 509,336
518,821 1,504,171 (1,511,499) - 511,493

Purposes of designated funds

Premises: This fund will be used to enable the charity to repair or improve their premises or support a move to new premises.

Ethical Closure: This fund will be used to ensure that, should training numbers reduce to the point where they are no longer viable, students already part-way through their courses will be offered a means to complete their training. The level of this fund was reviewed in 2020.

Course development: The Trustees agreed an additional fund for 2020 to support the development of existing and new psychotherapy or counselling courses.

Bursary: This fund will be used to ensure we could continue to support studnets already in receipt of bursaries in the event of a reduction of income.

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The Minster Centre

Notes to the financial statements

For the year ended 31 December 2020

18 Movements in funds (continued)

General funds

The Charity is required to reinvest profits from its training activity back into training work to benefit from its VAT exemption.

Restricted funds:

£0 (2020 - £255) was donated to the Bursary fund by individuals at The Minster Centre.

19 Reconciliation of net income to net cash flow from operating activities

Net expenditure for the reporting period
(as per the statement of financial activities)
Depreciation charges
Interest from investments
Decrease in debtors
Increase in creditors
Net cash provided by operating activities		 2020
2019
£
£
(32,662)
(7,328)
9,513
15,682
(1,749)
(1,783)
56,368
13,301
40,298
52,843
71,768
72,715

20 Analysis of cash and cash equivalents

Analysis of cash and cash equivalents
Cash at bank and in hand
Notice deposits (less than three months)
Total cash and cash equivalents		 At 1 January
2020
£
77,608
564,066		 Cash flows
£
71,768
71,768		 Other
changes
At 31
December
2020
£
£
-
77,608
635,834
-
713,442
641,674

21 Operating lease commitments

The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods

Less than one year
One to five years		 2020
2019
£
£
236,774
236,774
710,322
947,098
947,096
1,183,872
Property

The charity is a company limited by guarantee and has no share capital. The liability of each trustee in the event of winding up is limited to £1.

38

The Minster Centre

Notes to the financial statements

For the year ended 31 December 2020

23 Governance arrangements

The Minster Centre’s Board of Trustees is responsible for ensuring that the Centre maintains an effective system of internal control that supports the achievement of strategic aims and objectives whilst safeguarding assets for which it is responsible.

Such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives and can only provide reasonable and not absolute assurance against material misstatement or loss. The system of internal control is based on an ongoing process designed to identify the principal risks to the achievement of policies, aims and objectives, to evaluate the nature and extent of those risks and to manage them efficiently, effectively and economically. This process has been in place for the year ended 31 December 2020 and up to the date of approval of the financial statements, and accords with Office for Students guidance.

The Board of Trustees has delegated the day to day responsibility to the Director, as Accountable Officer, for reviewing the adequacy of the system of internal control and making any appropriate amendments. She is also responsible for reporting to the Board of Trustees any material weaknesses or breakdowns in internal control.

The following processes are in place to ensure the effectiveness of the Centre’s internal control and risk management:

The Board of Trustees meets at least five times a year to consider the plans and strategic direction of the Centre. This includes reviewing the strategic plan or key strategic issues (usually at a dedicated meeting in June). It is advised by its key committees, receiving regular reports from each committee and other reports from management as required.

The Board of Trustees ensures that its meeting calendar enables risk management and internal control to be considered on a regular basis during the year.

An organisation-wide risk register is maintained. The register is reviewed and updated regularly, and the Director reports on the actions taken to mitigate risks. The Board reviews the Risk Register at least annually, usually at its January meeting, and considers an identified risk at each meeting. During 2020 the Board met more frequently and reviewed the impact of Covid-19 at each meeting.

Consideration is given to the full range of risks across the Centre, including business, operational, financial, reputational and compliance and focuses on reviewing the most important risks and the actions taken to mitigate them. Review if risk includes consideration of new or emerging risks.

Monthly management accounts are presented to the Director and Finance Sub-Committee and the Board reviews management accounts at each of its meetings.

The annual budget and financial forecasts are presented to the Finance committee ahead of formal approval by the Board of Trustees.

The Centre has a remuneration policy and senior staff pay is determined by a Remuneration Sub-Committee (RSC) taking into account comparisons with national charity pay levels, remuneration in Higher Education and the ratios of highest to lowest and highest to median rates of pay. The RSC also agrees and annually reviews the overall approach to staff pay and any annual pay increases.

The Board of Trustees is of the view that there is an ongoing process for identifying, evaluating and managing the Centre’s significant risks; that it has been in place for the year ended 31 December 2020 and up to the date of approval of the annual accounts and that it is regularly reviewed by the Board. These processes enable the Centre to identify those elements of internal control which require further strengthening and these reviews have not identified any significant area of internal control weakness for the Centre.

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