Relate Birmingham Annual Report and Financial Statements Year ended 31 March 2024 Charity Number . 1053946 Company Number: 03174040 Feltons Chartered Accountants Birmingham B13JR
Relate Birmingham REPORT AND FINANCIAL STATEMENTS Year ended 31 March 2024 Contents Page Reference and Administrative Details Trustees Report Independent Auditor's Report on the Financial Statements 13 Statement of Financial Activities Including Income & Expenditure Account 16 Balance Sheet 17 statement of Cash Flows 18 Notes forming part of the Financial Statements, incorporating Statement of Accounting Policies 19 Other Notes to the Financial Statements 22 The following page does not form part of the financial statements . List of Trusts and Donations 28
Relate Blrmingham Reference and Administrative Details Chair Malcolm Pearson Trustees Elizabeth Wyatt Andy Lee Pam Dhanda Paola Ped111 Susan Thornas Malcolm Pearson Matthew Booton Ayola Beckford Christopher Price Ebony Findley Parminder Goray (Resigned 1718123) (Resigned 1718123) (Appointed 1618123) (Appointed 1618123) (Appointed 1618123) (Appointed 1618123) Company secretary Ruth Levesley Key management personnel Ruth Levesley Lisa Hale Chief Executive Service Manager Registered office 111 Bishopsgate Street Bimingham B15 1ET Charity registration number 1053946 Company registration number 3174040 Independent auditor Felton5 8 Soverelgn Court 8 Graharn Street Birmlngham B13JR Bankers CAF Cash Ltd 25 Kings Hill Avenue West Malling Kent ME19 4JQ Co-operative Bank plc PO Box 82 1181120 Colrno Row Birmingham 83 3BA Solicitors Tyndallwoods 29 Woodbourne Rd Edgbaston Bimingham B17 8BY Patron The Lord Mayor ot Birmingham Page 1
Relate Birmingharn TRUSTEES, REPORT Year ended 34 March 2024 CHAIR'S REPORT In Ilne with recent years. l am delighted to report that Relate Birmingharn continues to develop its sustainable buslness path forwards despite sometimes difficult economic pressures as potential clients are forced to reduce their Spending ability We as a Board contlnue to look at not only our spending but also our business development and future strategy to ensure that we continue to move forwards positlvely. As the Covid Pandemlc fades into a memory we cannot forget or undereslimate the impact It had on our staff and business and continue to rebuild cautiously. We are now able to return to face to face counselling to further develop to ensure that we can meet client needs One major highlight this year has been the recruitment of four new Board Members. It is not always easy to recruit Board members'given that all positions are voluntary and therefore involve people generously giving of their time. However, we had excellent success and. in cur recruitment, and as a result were not only able to recruit Trustees with specific business expertise but also significantly expanded the dlverslty of the Board. As previously, l am confident in the continued success of Relate Birmingham in the hands of our current team and lock fOard to our lurther achievement. and development. I must also add my appreciation and that of the Board to our Management and Staff for their hard work and dedication in keeping Relate Birmingham at the forefront of our seclor. Malcol earson Page 2
Relate Birmingham TRUSTEES, REPORT (continued) Year ended 31 March 2024 The Trustees present their report and the financial statements of the Charity for the year ended 31 March 2024. The trustees have adopted the provislons of the Statement of Recommended Practice (SORP) "Accounung and Reporung by Charities. in preparing the annual report and financial statements of the charity. The financial statements have been prepared in accordance with the accounling policies set out In notes to the accounts and comply with the charlty's governing document, the Charities Act 2011 and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to harilies preparlng their accounts in accordance with the Financial Reportlng Standard applicable in Ihe UK and Republlc of Ireland published In October 2019. Prlnclpal actlvity The charitable objectives of the company (the Common Purpose Statement) are explained on page 9. The principal activity during the year was the provision of relationship support, delivered through counselling for individuals, couples, families and young people, psychosexual therapy, family medialion, child contact Services and education and tralnlng work. STRUCTURE, GOVERNANCE AND MANAGMENT Governlng document Relate Birmingham 15 a company limited by guarantee govemed by Its Memorandum and Artlcles of Association dated 23 October 2013 and is registered as a ¢harity with the Charity Commission. There are currently eight members, each of whom agrees to contribute £1 in the event of the charity winding up. Membership Is open to any person or Institution upon receipt at the Offi¢e of a signed application in writing in a form approved by the Executive unless the admission of the applicant to Membership would be prejudicial to the Interest of the Centre. Relate Birmingham is a constituent society of the national organi5ation of Relate and as such is bound by the memorandum and articles of association of Relate, the Relate membership agreements, standards for constituent status and other regulatlcns in force at that time. Appointment of the trustees All directors of the company are also trustees. Trustees are elected from eligible members, by members, at the Annual General Meeting. The third longest serving Trustees stand down each year and may stand for re-election at the Annual General Meetlng. The Trustees have the power to ppoint and fill vacancies arising during the year. Trustse induction and training New trustees are brlefed on their legal obligations under charlty and ¢ompany law and the Charity Commission guidance on public benefit and are informed of the content of the Memorandum and Articles of Association, the committee and decision-making processes, the business plan and the recent financial performance of the charity. Organisation of charity (a) Executive Committee (The Board of Trustees) The board, which can have up to 18 members. is responsible for setting the po15cy of the charity and ensuring that all monies received are used for the objectives of the charity. There were nine members of the executive committee at 31 March 2024. (b) Chief Executive The Chief Executive is appointed by the trustees to manage the day-to-day operations of the charity and has delegated authority, within terms of delegations approved by the trustees for operational matters including finance, marketing, personnel and servlce delivery. The trustees and Chief Executive developed a business plan during the year, to which the Chief Executive has worked. Page 3
Relate Birmingham TRUSTEES, REPORT (continued) Year ended 31 PAarch 2024 Ic) Support staff The Chief Executlve was supported by the 1 Service Manager. 1 part time Finance Manager. 3 Cllnical Supervisors, 1 Service Co-ordinator and 3 paid administrative stsff covering Birmingham, Wolverhampton. Solihull, Walsall, Sandwell and Dudley and South Staffordshire. At the start of the year this included.. 1 Service Manager 3 Supervisors 1 Service Co-ordinator 1 Finance Manager 3 Administrative assistants 37 hours per week 32 hours perweek 37 hours perweek 16 hours per week 97 hours per week The Birniingham office is the base for the admlnistration team. (d) Counsellors At 31 March 2024 there were entY-nIne counsellors working beleen three and twenty-five hours per week. 8 /0 of the total number of counselling sessions dellvered was provided by ounsellors on a voluntary basis. le) Family Team At 31 March 2024 there We 4 Family Contact Workers and 1 Family Mediator. (fj Domestlc Abuse Services Team At 31 March 2024 there was 1 part time Domestic Abuse Service Manager and 2 Choose2Change programme facilitators Related parties and co-operation wlth other Drganisations None of our trustees receive remuneration or other benefit from their work with the .charily. Any connection between a trustee or senior manager of the charity with a client or supplier must be disclosed to the full board of trustees in the same way as any other contractual relationship with a related party. Related party transactions In the current year are described in note 17 to the accounts. Pay policy The board of directors, who are trustees and the senior management team together comprise the key management personnel of the charity in charge of directlng and operating the charity on a day to day basis. No director received remuneration in the year and detalls of directors, expenses and related party transactions are dlsclosed in note 7 to the accounls. The pay of staff is reviewed annually and, where finances permil, are increased in accordance with average eamings Page 4
Relate Birmingham TRUSTEES, REPORT (continued) Year ended 31 March 2024 Founded in 1946, Relate Birmingham is an independent, registered charity and a member of the national Relate Federation. We recognise relalionships have difficulties and aim to 5UPPOrt individuals. couples and families to build better relationships through the provision of counselling. sex therapy, e(Jucation and training and other relationship support and wellbeing services. At Relate Birmingham our mission Is to: Deliver counselling and training services Enhance the quallly of couple. family and parental relationships for adults, families and young people In Binningham. Sollhull. Sandwell, Walsall, Wolverhampton, Dudley and Soulh Staffordshire. Work as part of the Relate Federation OUR SERVICES Relationship Counselllng Relationship Counselling is for couples and Indlviduals having issues in their personal relationships or need support in their role as parents. We help them cope with issues such as communication. parenting and co- parenting, dlvorce and separation and improve their relationships with partners, children and relatives. Other issues we work with include domestic abuse, adult survlvors and mental health issues. Sessions can be face to face, via webcam or phone. Sex Therapy Sex therapy is for people having problems in Iheir sexual relationships due to physlcal or emotional issues. They can be in a couple or single. Many people are referred by their GP. Farnily Counselling Family Counselling addresses issues occurring in a family situation. This can include difficulties in. communication beeen parent5 and Children, differing parenting Idea5 causing frictlon within the famlly unit, blended families bringing together a 'new' family. children and young people struggling with relationships or supporting family members recovering from the impact of abuse. Children & Young People's Counselling Time for You is our service forchildren and young people aged 7-18 experienclng Changes In their family such as separation, divorce, blended famllies. absent parents, illness. bereavement, and conflict. It also helps where this has an impact on school, work or peer relationships and supports Chlldren and young people who may have any issues around the subject of bullying or domestic abuse. It gives them an opportunlty to be listened to and express Ihelr feelings. Llfe skills. Tralning and Educatlon Services We can provide relationship, parenting and life skills workshops for the public. as well as tailored training courses for other professionals, voluntary groups or organisation5 SUPPOrting families. Famlly Mediation Mediators work with couples Involved in family breakdown to make arrangements, either to plan for a separation or divorce, or once a separation or divorGe has taken place. Mediation can help to settle disputes over rontact and living aangementS. child maintenance, property and rnoney, without having to go lo court, paving the way to a smoother separation. Child Contact We work directly wlth children and families. referred to us by CAFCASS, in community settings to promote safe and beneficial contact beeen separated I non-resldent parents and their children. Domestlc Abuse Services Choose2Change is our group programme designed to help people stop using abusive behavlour towards an intimate partner or ex-partner and to increase the safely of women and children Page 5
Relate Birmingham TRUSTEES, REPORT {continued) Year ended 31 March 2024 REVIEW OF ACTIVITIES AND ACHIEVEMENTS During the year we have continued to provide services covering the area of Bimjingham, Solihull, Wolverhampton, Dudley, Sandwell. Walsall and South Staffordshire. Since the Coronavirus pandemic, our premises have been open only for administration, wth counsellors working remotely providing sessions over webcam or phone. Thls June, in line with our plans and responding to client demand. we restarted face to face counselling in our Birmingham centre and Sutton Coldfield premises and we are on track to reopen the Wolverhampton centre in September 2024. We made progress in building the management and admin team, recruiting a part time finance manager and 2 adminislralors. A marketing and communlcations manager starts later in 2024. We also actively recruited more counsellors and took on 5 new placement Students. During 2023-24 we delivered 10.023 hours of service and support. working dlrectly with 3257 adults, young people and children, and indirecify benefitting a further 1621 children. Overall, we registered 2240 new cases and dellvered 8331 hours of counselling and the ongoing slrain on relationships and wellbeing is clear. Children and parenting difficulties were an Issue for 24% of adults and couples. Mental health was an Issue for 250/0 and domestic abuse was an issue for 15%. We believe services should be accessible to all. Many of our cllents are on low incomes and 220/0 live in the most deprived areas. Concerns about work and money worries were the key issue for 18fj of self-referral clients, especially with the ongoing cost of living pressures. We have continued to provide a subsidised servlce for clients who need it and a full bursary to SUPPOrt parents with severe financial difficulties. Thls year our subsidy rate is 500/0 on average. We also supported clients referred through national Relate benevolent funded counselling and mediation proJects for army, navy and RAF personnel and bank workers. as well as retail and licencing trade employees. Based on the success of our initial pilot of a relationship support serwice to NHS staff affected by the cost of living increases, the seNi¢e was extended this for a second phase this year. We offered counselling sessions and attended events. We also provided counselling to patients with relationship and family issues referred by their GP. Our Time for You Service and work with children and young people's expanded rapidly this year and wa5 almost a third of our overall delivery. Our project in Sandwell for children and young people whose emotional well-being had been affected by the impact of Coronavirus wa5 funded by SCVO for a further 2 phases. We provided one lo one counselling in 11 primary and secondary schools and also offered sessions online. We also began working with Sandwell and Dudley CAMHS. providing coijnselllng for children and young people needlng Getting Help support. During the year we increased our counsellor team and worked in partnership with local counselling providers and other Relate Centre. We offered counselling in a residential unlt for parents undergolng assessment. We started new Domestic Abuse Services, recruiting a Service Manager and facilitators to deliver the Choose2Change behaviour change programme for perpetrators. Since October 2023 we have been working in partnership with St Giles Trust, Black County Women's Ald, the Police and Relate Coventry on the Pathways to Change project to pllot perpetrator Interventions to increase the safety of women and children. Thls is funded by the OPCC. Famlly Mediation continued to support separating or divorclng parents reach agreement about their finances, property and chlld contact and delivered online and face to face meetings. We provided Ihe ICFA servlce In our area, in partnership with Child Action North West. This service supports parents and children referred by CAFCASS to have safe and beneficial contact through tailored work plans and time-limited contact work. We maintained our NACCC Accreditation and recruited more family workers to join the team. Page 6
Relate Birmingham TRUSTEES, REPORT (continued) Year ended 31 March 2024 Analysis of Activity Year to March 2023 8165 2539 Year to March 2024 10023 3357 2240 Totsl units of work dellv8red: Total nurnber of users Total number of new cases: Self Referrals 40°A of work is self-referral. Number of New Cases Registered Total Hours of Counselling Appointments Glven 1,521 4,994 1114 3305 Total Hours Service Given 5073 3975 Relationship Counselling Sex Therapy Chlldren & Young People's Counselling Family Counselling Training & Workshops Family Mediation 81% 8% 60 50 50 3° 30 3% Contracts and Commissloned Services: 60°A of work is contract or commlssloned. Total Hours Service Given 3092 6048 Primary CarelHealth Counselling CYP CAMHSISchoollProject Counselling Residential Centre Counselling Child Contact Service 140 369/0 11Y• 61 44% 260A Clients Information 3257 adults, young people and children benefited directly from our services. 1621 children of adult clients benefited indirectly. Who We Worked With Couples Women Men Families Childrenlyoung People Where They live Blrmingham Solihull Sandwell South Staffs Walsall Dudley Wolverhampton other 26% 14% 10°/0 20 48% 32Y. 5% 20° 80 80 16% Presenting Issue- Adultslcouples Communication Difficulties Children. Family, Parenting Work & Money Worries Separation and Divorce Sexual Problems Mental & Physical Health Affairs Dotnestic Abuse Impact of Past Relationships Bereavement Alcohol and Drug Misuse Sexual Abuse Caring Responsibilities 54% 24% Ethnlcity White Brilishllrishlother AsianlAsian British BlacklAfrioanlCaribbeanlBlack British Mixedlmultiple Ethnic Groups Other 16% 17% 250 140 15• 24% 68% 16V 2% 80 Employment ststus- Adults Full Time Part Time Self Employed At Home On Benefit Retired Student 64% 150 40 5% 40 30h 4% Relationship Status - Adults Marriedllcohabiting Separated1Divoed Single None Civil Partnership 680 17% 5% 2% Page 7
Relate Birmingham TRUSTEES, REPORT (continued) Year ended 31 March 2024 Summary Financial Information How We Funded Our Sarvices 2023 2024 Donations and Grants Local Authority Client Contributions Grants & Contracts Educatlon and Tralning Farnily Mediation Room Hire and Other Income 54,598 36,464 145,321 358,827 34,150 36,464 123,955 587,206 5,120 2.322 5.890 4,138 Average cost per counselling hour Average client contribution per hour 57.85 28.54 56.38 28.16 Average subsidy made per client appolntment On average we subsidlsed clients by 29.31 500 28.22 50rhi FUTURE PLANS AND DEVELOPMENT Durlng the year we made significant prOg$s, and our aim is to build on this over the next year. This year our objective is to make more progress on building our organisation and developing services to meet the needs of clients and staff. This includes developing face to face and digltal delivery, the rising cost of living and the increased need for mental health support for adults. children and young people. We will continue to broaden our offer, focussing on developing Mediation, Family Contact and Domesti¢ Abuse Services. In 2024125 our priorities are to-. Organisational Structure and Systems Develop the staff structure and recruit to Identified roles to deliver the plan. Re-open the main centres and develop a neOrk of delivery venues. Increase use ofdigital systems and update our booking and case management systems. Develop clinicallservice leadership to maintain service quality and safely. b) Service Delivery Increase face to face counselling and overall delivery through recruitment and tralnlng. Develop counselling services- individuals. bereavement, CYP, one sesslon therapy. Develop Family Mediation and Family Contact Services. Establish and develop the Domestic Abuse Servl¢e. Outcome and evalualion reporting of main servlces. Marketing & Income Generation Develop a marketing strategy to increase digital marketing and raise our profile. Update our website. Increase grant income for our bursary and projects to support those in need. HR & Staff Developfflent Increase HR support for staff recruitment and development. Update policles and procedures. Provide more opportunities for communication. engagement and team building. Develop our staff support and wellbeing offer. Increase opportunities for volunteering. Page 8
Relate Birmingham TRUSTEES. REPORT {continued) Year ended 31 March 2024 COMMON PURPOSE STATEMENT Relate's distlnctive focus is the adult couple. recognising the benefits of this focus to the mental, physical and emotional health of adults and children Involved. This focus recognlses dlfferent cultural understandings of marriage and other couple relationships. and encompasses work with the adults, together or on thelr own, al any lime In the Ilfe or ending of their relationship, whether the couple wish to stay together or Separate. Relate aims lo deliver its seNlces wlth cultural sensitivity and without discrimination. Relate's objectives are to enhance the quality of couple, parental and family relatlonships to help avoid unnecessary relatlonship and family breakdown to limit the damage which commonly accompanies poor relationships, separation and divorce and increase the prospect of subsequent relationships succeeding Relate's tasks are to aim to achleve these objectives by the provlsion of relationshlp counselling, sex therapy, education. training and related services, which are timely, evaluated and offer equal access and opportunity to all who can benefit from them. to influence opinlon formers and government, through research and other means, in order that improvements are made in funding, social pollcy and the law and related public SeICeS. Relats's work is based in the beliets that an individual's physical well-being and emotional and mental health benefit from a committed relationship that the ability of both children and adults to develop and contribute effectively In soclety is directly related to the quality of their family relationships. that since famlly relatlonships change, second and split parent, step-family and cohabiting partnerships are no less a focus for Relate than first families. that expressing clear commitment is a helpful contribution to a healthy and secure couple relationship that the quality of couple and family relationships can be improved, avoidable breakdowns prevented, and new relationships formed with the help of a trained counsellor. Page 9
Relate Birmingham TRUSTEES. REPORT (continued) Year ended 31 March 2024 FINANCIAL REVIEW The financial results of Relate Birmingham are detslled in the followtng pages. It is considered that the firbances are sound and well established. The principal funding source is grant and Contract income, followed by client contributions income and we have a diverse set of income streams. All expenditure of this income is planned to fulfil the objectives and strategies of the charity. During the year ended 31 March 2024 total income received was £767,778 and total resources expended were £604,574 giving surplus income over expenditure of £163,204. Compared to the previous year, income Increased due to obtalning new contracts and granl funded project work. Although our centre and staff costs increased, and we carefully managed expenditure throughout the year. and we now plan to recruit to new roles in 2024-25. The principal risks and uncertainties and the plans and strategies adopted to manage these Tisks are described in the risk management section of the report below. Investment powers and pollcy The trustees have invested surplus funds wlth CAF Bank. The invested funds achieved an average interest rate of 1.350/0 which due to wider economic circumstances falled to achieve the rate of increase in Ihe retail priGe index. Reserves policy and going concern The trustees consider that unrestricted funds should not exceed six months of resources expended. Unrestricted reserves amaunted to £603,492 (2023 - £437,432). Current reserves are consldered to be at a reasonable level as resources expended for the next six months are expected to be £400,302. The Trustees have reviewed the Charity's need for reserves in line with guidance issued by the Charity Commission. Holding reserves allows the Charity to protect itself against any financlal uncertainties, be able to operate despite gaps in funding income and provides a safeguard for the Charity's SeiCe commitments. The resejves of the charity have been dlvlded where appropriate into restricted. designated and general funds in accordance with charity legislation. Restricted Funds The restricted fund represents money glven to Relate Birmingham for specific capital or project work. Our current restricted reserves are £185,916 and they Include.. The current value of the Bishopsgate Street property, whlch was purchased with a Community Fund grant of £330,238 in December 2001 and depreciates each year. This property was revalued at £250,000 in 2015. The Wolverhampton property, which wa5 acquired in June 2014 at a value of £170,000. Unrestrlcted Funds The trustees, policy In respect of the monies held in the general fund is influenced by- Forecast levels of income in the ensuing year. Forecast expenditure in the ensuing year on the basls of planned activlty. Funds designated for specific purposes. An analysis of any future needs, opportunities, contingencies or risk5. the effecls of which are not likely to be met from planned expenditure. Page 10
Relate Birmingham TRUSTEES, REPORT {continued) Year ended 31 March 2024 Risk Management The Trustees have a risk management process which comprises.. An annual review of the principal risks and uncertainties that the Charity faces. The establishment of policies, Systems and procedu5 to miligate those risks Identified in the annual review. The implementatlon of procedures deslgned to minlmlse any potential Impact on the Charily should those risks materialise. This work has Identified that financial sustalnability is the rnajor financlal risk for the charity. Key elements in the management of financlal risk are a regular revlew of available liquid funds to settle debts as they fall due, regular liaison with the bank, and active management of operational debtor and creditor balances to ensure sufflclent working capital by the Trust. Attention has also been focussed on non-financial risks arising from fire, health and safety, employment matters and data protection. These risks are managed by ensuring accreditation is up to date. havlng robust policies in place, and regular awareness tralning for staff working In these operatlonal areas. Trustees. responsibilities In relation to the financial statements The charity trustees (who are also the directors of the charitable company for the purposes of ¢ompany law) are responsible for preparing the Trustees. Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of Ihe stale of affairs of the charitable company and of its incoming resources and application of resources, including its Income and expendllure tor that period. In preparing these financial statements, the trustees are required to- sele¢t 5Ultable accounting policies and then apply them consistently. observe the methods and principles in the Charities SORP. make judgements and accountlng estimates that are reasonable and prudent. state whether applicable UK Accountlng Standards have been followed, subject to any material departures dis¢losed and.explained in the financial statements., and prepare the financial statements on the going concern basis unless it is 'inappropriate to presume that the charitable company will Continue in business. The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any tlrne the financial position of the charily and to enable Ihem to ensure that the financlal statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the char6ty and hence for taking reasonable steps for the prevention and detection of fraud and other irregularitles. The trustees are responsible for the maintenance and integrily 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 otherjurisdiclions. Page11
Relate Birmingham TRUSTEES, REPORT (continued) Year ended 31 March 2024 Directors The followlng dlrectors have held office during the year: A Beckford M Booton P Dhanda P Goray E Findley ALee M Pearson C Price E Wyatt All directors of the company are also trustees. Trustees are elected from eligible members, by members. al the Annual General Meeting. The third longest serving Trustees stand down each year and may stand for re-election at the Annual General Meeting. The Trustees have the power to appoint and fill vacancies arising durlng the year. Statement as to disclosure to our auditor5 The directors as set out above confirrn, so far as we are aware, that.. there is no relevant audit infomiatlon of which the charitable company's auditor is unaware., and we have taken all the steps that we ought to have taken as directors in order to make ourselves aware of any relevant audit information and to estsblish that the company's auditors are aware of that infomiation. This report has been prepared in accordance wlth the special provisions of Part 15 of the Companies Act 2006 relating to small companies. Approved by order of the Board Malcolm Chai/ earson 1 August 2024 Page 12
Independent Auditor's Report to the Members of Relate Blrmlngham Opinlon We have audited the financial statements of Relate Birmingham (the 'charitable company,) for the year ended 31 March 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including significant accounling pollcies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (Uniled Kingdom Generally Accepted Accounting Practice). In our opinion the financial stalements . give a true and fair view of the state of the charitable company's affairs as at 31 March 2024, and of ils incoming resources and application of resources, including its income and expenditure. for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companie5 Act 2006. Basls for opinion We conducted our audit in accordance wilh 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 reporL We are independent of the charitable company in accordance with the ethical requirements that are relevant lo 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 relatlng 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 charitable company's ability to continue as a going concern for a period of at least e1ve months frorn 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 Informatlon The other information Comprises the information included in the trustees annual report, other than the financial statements and our auditor's report thereon. The Irustees are responsible for Ihe 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. Page 13
Independent Auditor's Report to the Ivlembers of Relate Birmingham (continued) Our Tesponsibility 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 materlally misstated. If we Idenlify such material inconsistencies or apparent material misstatements, we are required lo determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Oplnion on other matters prescribed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the trustees, report for the financial year for which the financial statements are prepared is Consistent with the financial statements., and the trustees, report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of our 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, 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: adequate accounting records have not been kept, or the financial statements are not in agreement wilh the accounting records and returns,. or certain disclosures of trustees, remuneration Specified by law are not made: or we have not received all the information and explanations we require for our audit: or the trustees were not entitled lo prepare the financial statements in accordance with the small companies regime and take advantage of the small companies, exemptions in preparing the trustees, report and from the requirement lo prepare a strategic report. Responsibllities of trustees As explained more fully in the Trustees, Responsibilities statement {set out on page 11), the trustees (who are also the directors of the charitable company for the purposes of Gompany law} are responsible for the preparation of the financial statements and for being satisfied Ihat 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 abilily to conlinue 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 reali5lic alternative but to do so. Page 14
Independent Auditor's Report to the Members of Relate Birmingham (continued) 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 auditorfs 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 exisls. 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below.. We reviewed the company's control and risk management procedures and planned our work based on our assessment of those controls and procedures., This review included an assessment of the risk of material misstatement due to errors, fraud and management override of controls for all material areas in the financial statements., We made enquiries of management and the company's lawyers regarding any actual or potential litigation andlor claims., Financial statements disclosures were reviewed and checked for compliance with applicable laws., Detailed testing was conducted on balances and transactions including unusual items and those of individual significance to the financial statements.. Data analytics were used in order to identify unusual or significant trends-, Communications with management and those charged with governance regarding relevant matters was undertaken throughout the audit and on completion. Because of the inherent limitations of an audit, there is a risk that we will not detect all iegUlaties. 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 Conalment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uklauditorsresponsibilites. This description forms part of our auditols 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. David W Farnsworth FCA (Senior Statutory Auditor) For and on behalf of Feltons, Statutory Auditor 8 Sovereign Court 8 Graham Street Birmingham B13JR 22 August 2024 Page 15
Relate Birmingham STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDrruRE ACCOUNT) Year ended 31 March 2024 Unrèstrlrtsd funds Restrlct•d fund5 Total Total 2023 2024 Notgs Income Volunlaryincome.. Donation5 and legacies Income from eharitable activitsgs.. Grant and contracts Counselling Income Income fn)m tradin9 aclivilles.. Supervislon Other income 10.700 23.450 34,150 54.598 361,351 129.845 238,293 599,644 129,845 395,292 150,441 1,000 48 48 Investment incgme 4,091 4,091 1,322 Total Income 506.035 261.743 767.778 602 653 Expenditure Costs of Trl&ng lunds.. Room hire Supervision 13.552 11,875 13,552 11.875 6,922 .5,133 Chontable aclivilies.. Operational and support costs 314,548 264,599 579.147 486,650 Totsl expenditure 339,975 264,599 604,574 498,705 Net lexpenditurel l income before transfer8 166.060 {2,8561 163.204 103.948 Gross transfer5 betsveen funds 13 Net movement in funds 166,060 (2,8561 163.204 103,948 Reconclllation of funds Total funds brought forward 13 437,432 397.152 834,584 730,636 Total fund$ carried forward 603.492 394,296 997.788 834,584 All ofthe charity's aclivllies derive from continulng operations during the above tsvo financial perfods. The slalement of finanal actlvllles Includes all gains and losses recognised during the year. Page 16
Relate Birmingham Company Number . 03174040 1 Charity Number . 1053946 BALANCE SHEET Year ended 31 March 2024 2024 2023 Notes Flxed assets Tangible assets 397,460 400,663 Current assets Debtors Cash at bank and in hand 10 174.906 607,567 782,473 151.925 528,078 680,003 Creditors: amounts falllng due wlthln one year 11 182,143 246,082 Net Current assets 600,328 433,921 Net assets 997,788 834,584 Funds of the charity: Restricted funds General fund 13 394.296 397,152 Unrestrlcted funds General fund 13 603.492 437,432 Total funds 997,788 834.584 These acGounts have been prepared In accordance with the speclal provlslons of Part 15 of the Companies Act 2006 relating to small companies. The notes on pages 19 to 27 form part oflhese accounts. The financial statements were approved and authorised for issue by the Trustees on 1 August 2024 and signed on their behalf by.. Mal Chair Pearson Page 17
Relate Birmingham STATEMENT OF CASH FLOWS Year ended 31 March 2024 Notes 2024 2023 Cash flow from operating activlties 18 76.298 187,434 Net cash flow from operating activltles 76,298 187.434 Cash flow from investing activities Acquisition of tanglble fixed assets Interest received (900) 4,091 {3.036) 1,322 Net cash flow from investing activltles 3.191 1,714 Net increase in cash and cash equlvalents 79,489 185,720 Cash and cash equlvalents at 1 April 2023 528,078 342,358 Cash and cash equivalents at 31 March 2024 607,567 528,078 Page 18
Relate Blrmlngham NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2024 1. Accounting policies a) Basis of preparation Relate Birmingham is a charitable company limlted by guar8ntee . In the event of the charity being wound up. the liability in respect of Ihe guarantee is limited to £1 per member of the charity. The address of the reglstered office is given In the Charity information on page 1 of these financial statements. The nature of the charity's operations and principal activities are provision of relationship support. The charlty ¢onslilutes a publlc ben8fit entity as defined by FRS 102. The financial slalements have been ppared In accordan with Accounting and Reporting by Charities= Statement of Recommended Practice applicable to charities pparIng their accounts In accordance wllh the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland {FRS 1021, the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accountlng Practice. The financial statements are prepared on a going concem basis under the historical. $t convention, The financial statements are presented in sterling which'is the fundional currency of the chaiity . The significant accounting policles applied In the preparation of these financial statements are set out below. These pollcies have been consistently applied lo all years presented unless otherwise stated bl Golng concern The financial statements have been prepared on a golng concern basss as the trustees believe that no material uncertainlies exist The Iruslees have considered the level of funds held and the expected level of income and expendSture for a period of 12 months from the dale of aulhorising these flnanclal slalements. The budgeted income and expenditure is sufficient with the level of reserves for the charity lo be able lo continue as a going concem. c) Income recognltion All incoming resources are induded in the Ststsment of Financial Activities (SOFA) when the charity is legally entitled to the income after any performance conditions have been met. the amount can be measured reliably and it is probable that the income wll be received. Grants recelvable Grants are included In the Statement of Financlal Activities on a receivable basis. The balance of income received for specific purpose5 bul not expended during the period is shown in the relevant funds on the balance sheet Where income is recelved in advance of entillemenl of receipt its recognition is defeed and included in creditors'as deferred income. Where entitlement occurs before income is received, the income is accrued. Donations Donations are recognised on a receivable basis where there is certainty of receipt and the amount can be reliably measured. If there are condiuons attached to the donation and this requires a level of perfomiance before entitlement can be obtained then income is deferd until those conditions are fully met or the fulfilment of those conditions is within the Control of the Charity and it is probable Ihat they will be fijlfilled. Donated services and gifts In kind Donated facilities and donated professional services are recognised in income at their f2Sr value when their economlc benefit Is probable, it Can be measured reliably and the charity has conlrol over the item. Fair value is determined on the basis of the value of the gift to the charity. For example the amount the charity would be willing to pay in the open market for such facilities and services. A correspondlng amount is recognised in expenditure. Page 19
Relate Birmingham NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2024 {continued) 1. Accountlng pollcies (contlnued) cl Income recognition (continued) Glfts in klnd Fixed asset gifts in kind are recognised when re¢eNable and are induded at fair value. They are not deferted over the life of the asseL Interest receivable Interest on funds held on deposit is included when CeIVable and the amount can be measured reliably by the charity.. this is normally upon nolificalion of the interest paid or payable by the bank. Other Income Other income. including the hire of facilitieg. is recognised in the period il is recelvable and to the extent the goods have been provided or on completion of the servlce. d) Expenditure recognitlon All expenditure is attounled for on an accruals basis and has been classified under headings that aggregate all costs related tr) the category. Expenditure is recognised where there is a legal or constructive obligatlon to make payments to third parties. it is probable that the settlement will be required and the amount of the obligation can be measured lIablY. 11 is Categorised under the followln9 hea'dings.. Costs of generating funds These are costs incurred in attracting voluntary income, and those incurred in Iradlng activities that raise funds. Charltable activitles These are costs incurred in activllies undert8ken lo further the purposes of the charity and their associated support cosls. Governance costs These include the Costs attdbutable to the trust's compliance wllh constibjtional and statutory reqU1Ments. inciuding audit, Strategic management and Irustees, meetings and reimbursed expenses. Irrecoverable VAT is charged as an expense against th8 activity for which expenditure arose. el Fund accountlng Unrestricted fvnds are available to spend on activities that fijrther any of the purposes of the charity- Designated funds are unrestricted funds of the charity which the trustees have decided al their ¢Jiscretion to set aside to US8 for a speclfic purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the trusvs work or for specific projects being undertaken by the trust. Page 20
Relate Birmlngham NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2024 (continued) 1. Accountlng policies {continued} fj Allocatlon of support costs Support costs are those that assist the work of the charity but do not directly represent charitable actlvities and include office costs, governance costs and administrdtive payroll costs. Where support Costs cannot be directly attributed to particular headings they have been allocated lo cost of raising funds and expenditure on charitable aclivities on a basis consislent wllh the use of resources. g) Tanglble fixed assets Tangible fixed assets are stated al cost (or deemed Cost) or valuation less accumulated depre¢iallon and accumulated impairment losses. Cost Includes costs directly attrlbutable lo making the asset capable of operating as intended. Depreciation Is provided on all tangible fixed assets, at rates calculated to write off the c05L less estimated resldual value, of each asset on a systematlc basis over ils expected useful life as follows.. Freehold buildings Fixtures, fittings and equipment 2%- 10Q/o perannum 20¥0 per annum h) Investments Surplus cash over and above what is considered necessary as WOTking capital is Invested in low to medium risk assets. Such assets musl be diverslfied and may indude cash if it 15 considered prudent. The object is to maintain value and keep pace with inflation while providing income for the use of the charity where possible. At the same time holding such funds for future capital expenditure as necessary. l) Operating leases Rentsls payable under operating leases are charged lo the SOFA on a straight line basis over the period of the lease. J) Taxation The charity Is an exempt charity within the meaning of schedule 3 of the Charilles Act 2011 and is considered lo pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefo it meets the definition of a charitsble company for UK corporation'tax purposes. k) Pension benefits The charity operates a defined conlrlbution plan for the benefit of its employees. Contributions are expensed as they become payable. Page 21
Relate Birmingham NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 20241contlnued) 2. Donatlons and legacies Unrestrfcted Restricted funds funds Total 2024 Total 2023 Donatlons Grants 10,700 23,45Q 34,150 30.518 24,080 10,700 23,450 34,150 54,598 3. Investment Income Unrestrlcted Restrlcted funds funds Total 2024 Total 2023 Deposit account interest 4,091 4,091 1,322 4,091 4,091 1.322 4. Operational and support costs Educatlon Counselling & training services services Total 2024 Total 2023 Operational and support costs Staff costs Invoiced supplies Trainlng Volunteer expenses Support costs (see note 5) Govemance costs (See note.5) 215.445 69,452 3.872 403 252,298 37,677 215,445 69,452 3,872 403 252.298 37,677 203,501 15,334 12,325 226,356 29,134 579,147 579,147 486,650 Total expenditure on charitable activities was £579,147 (2023 - £486,650) of which £314,548 (2023 £211,274) was unrestrtcted and £264,599 (2023 - £275,376) was restricted. Page 22
Relate Birmingham NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2024 (continued) 5. Analysis of support and governance costs General support Governance function Total 2024 Total 2023 Management and administrative staff Tralning and recruitment Premises costs Insurance General office costs Audit Accountancy Federation fees Legal and other Professional Bank charges Depreciatlon 187,042 8,915 15.611 11,625 21,822 187,042 8,915 15,611 11,625 21.822 3,433 13,849 20,395 186,318 911 8,671 6,136 16,774 3,420 2,101 23,613 35 3.425 4,086 3,433 13,849 20.395 3,180 4,103 3,180 4,103 252,298 37,677 289,975 255,490 The allocation of general support and governance costs Is based upon Counselling and Educational income as a percentage of total Income recelved. 6. Net expenditure for the year Net expenditure is stated after charging-. Total 2024 Total 2023 Depreciation of tangible fixed assets Operating lease rentals Premises Office equipment Auditor's remuneralion Audit fees 4,103 4.086 6.000 1,823 6,000 269 3.433 3,420 7. Trustees and key management personnel remuneration and expenses The trustees neither received nor waived any remuneration during the year (2023 - £nil). During the year, travel expenses of £41 was reimbursed to one trustee (2023 - £nil). The Trust considers its key management personnel comprise the Chief Executive and Service Manager (2023 included Operations & Administration Manager). The total amaunt of employee benefits received by key management personnel was £100,224 (2023 - £114,157). Page 23
Relate Birmingham NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2024 (continued) 8. Analysls of staff costs and numbers staff costs ". Total 2024 Total 2023 Wages and salarles Social security costs Pension 375,465 20,462 6.560 402,487 364,831 19,255 5,733 389,819 No employees received totsl employee benefits of more than £60,000. Staff numbers . The average monthly number of employees and full time equivalents during the year was as follows.. 2024 Number 2024 FfE 2023 Number 2023 FTE Delivery staff Support staff 35 12 28 43 18 36 14 9. Tangible fixed assets Freehold land and buildings Flxtures. fittin9s and equipment Total Cost or valuation At 1 April 2023 Additions At 31 March 2024 420,000 55,034 900 55,934 475,034 900 475.934 420.000 Depreciation At 1 April 2023 Charge for the year At 31 March 2024 22,848 2,856 25.704 51,523 1,247 52.770 74.371 4,103 78,474 Net book values At 31 March 2024 394,296 3.164 397.460 At 31 March 2023 397.152 3,511 400,663 Page 24
Relate Birmingham NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2024 (continued) 9. Tangible fixed assets (contlnued) Freehold land and buildings Fixtures, fittings and equipment Total Cost or valuation at 31 March 2024 is represented by . Valuation in 2015 Cost 420,000 420.000 55,934 475,934 55,934 55,934 420,000 Freehold properties were revalued by the trustees as at 31 March 2015. 10. Debtors Total 2024 Total 2023 Debtors from operations Prepayments and accrued income 159,470 15,436 174,906 105,854 46,071 151.925 11. Creditors - amounts falling due within one year Total 2024 Totsl 2023 Creditors from operations Other taxation and social security. Accruals and deferred income Other creditors 23,303 6.910 123,171 28,761 182,145 6.279 5,461 204,599 29.743 246,082 Deferred income Deferred income at 1 April 2023 Resources deferred in the year Amounts released from previou5 years Deferred income at 31 March 2024 200,213 88.739 175.639 113,313 95,673 181,421 6,881 200,213 At the balance sheet date the charfly was holding funds received In advance where the qualifying expenditure is expected to be incurred in a future year. Page 25
Relate Birmingham NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2024 (continued) 12. Commitments under operating leases At 31 March 2024 the charity was committed to making the following payments under non- cancellable operaling leases Land and bulldings Total Total 2024 2023 Within one year Within two to five years Inclusive 4,000 6,000 4,000 4,000 10,000 13. Analysis of funds Balance at 1 April 2023 Gains, losses and transfers Balance at 31 March 2024 Incoming resources Resources expended Restricted funds General fund 397,152 261.743 264,599 394,296 Unrestricted funds General fund 437,432 506,035 339,975 603,492 Total funds 834.584 767,778 604,574 997,788 Name of fund Description. nature and purpose of fund Restricted general fund Money given to the charity where the donor requires that a grant or donatlon be spent for a specific project. Unrestricted general fund The free reseNes of the charity which are not designaled for particular purposes, Page 26
Relate Birmingham NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2024 (continued) 14. Analysrs of net assets between funds Fund balances al 31 March 2024 are represented by: Unrestricted Restrlcted funds funds Total funds Tangible fixed assets Current assets Current liabilities Total net assets 3.164 782,473 182,145 603.492 394,298 397,460 782,473 182.145 997,788 394,296 15. Capltal commitments There were no capital commitments at 31 March 2024 nor at 31 March 2023. 16. Reconciliatlon of net expenditure to net cash flow from operating activities Total 2024 Total 2023 Net income for the year Depreciation Interest receivable Decrease in debtors Increase in creditors 163.204 4,103 (4,091) (22.981 } 163,937) 103,948 4,086 (1,322) (32,699) 113,421 Net cash flow from operating activities 76,298 187.434 17. Relatsd party transactions No related paty transactions took place in either the current or prevlous period of account. Page 27
RELATE BIRMINGHAM Trusts and Donations YEAR ENDING 31 MARCH 2024 Thank you to the following funders who have supported us this year: Donations CB & HH Taylor 1984 Trust Charles Brotherton Trust Jabbs Foundation Roger & Douglas Turner Trust William A Cadbury Charitable Trust Qther personal donations Grants Sandwell MBC Walsall MBC scvo Page 28