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2022-03-31-accounts

Registered number: 03209287 Charity number: 1057291

RELATE NORTH EAST LONDON LIMITED

(A Company Limited by Guarantee)

UNAUDITED

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

RELATE NORTH EAST LONDON LIMITED

(A Company Limited by Guarantee)

CONTENTS

Page
Reference and Administrative Details of the Company, its Trustees and Advisers 1
Trustees' Report 2 - 6
Trustees' Responsibilities Statement 7
Independent Examiner's Report 8 - 9
Statement of Financial Activities 10
Balance Sheet 11 - 12
Statement of Cash Flows 13
Notes to the Financial Statements 14 - 30

RELATE NORTH EAST LONDON LIMITED

(A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2022

Trustees P Whiteside, Chairman
B Bezdel, Vice Chairman
M Grant
G Hawker
T Slyce
J Thornicroft (resigned 31 December 2021)
M Gentry
M Wallace
D Stoton (deceased 12 October 2021)
Company registered
number
03209287
Charity registered
number
1057291
Registered office
12a Bridge Close
Romford
RM7 0AU
Independent examiners
Larking Gowen LLP
Chartered Accountants
1 Claydon Business Park
Great Blakenham
Ipswich
IP6 0NL
Bankers
NatWest Bank Plc
Hornchurch
RM12 4UL
Charities Aid Foundation
25 Kings Hill Avenue
Kings Hill
West Malling
Kent
ME19 4JQ

Page 1

RELATE NORTH EAST LONDON LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2022

The Trustees present their annual report together with the financial statements of Relate North East London Limited for the year 1 April 2021 to 31 March 2022. The Annual Report serves the purpose of both a Trustees’ Report and a Directors Report under Company Law. The trustees confirm that the Annual Report and Financial Statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company’s governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting standard applicable in the UK and Republic of Ireland (FRS102) (effective 1st January 2019).

Since the Company qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Structure, Governance and Management

The charity is constituted as a company limited by guarantee, incorporated on 7 June 1996 and registered as a charity on 2nd August 1996 and is therefore governed by a Memorandum and Articles of Association. In the event of the company being wound up, members are required to contribute an amount not exceeding £1.

Recruitment and appointment of the Management Committee

The Directors of the Company are also charity trustees for the purposes of Charity Law and under the company’s Articles are known as Members of the Management Committee. Under the requirements of the Memorandum and Articles of Association the members of the Managing Committee are elected to serve for a period of three years after which they must be re-elected at the next Annual General Meeting. The Management committee has the power to appoint additional trustees as it considers fit. The committee meets regularly to review and give direction to the running of the Charity, in order to retain this mix, trustees are asked to provide a list of their skills (updated every year). Should any of these skills be lost due to retirement or similar we can ensure that individuals who have the appropriate skill set are approached to offer themselves for election onto the management committee.

Trustee Induction and Training

New trustees have a series of meetings with the senior officers of the charity and the Chair of Trustees which cover:

Trustees are also encouraged to access the online induction training which is available on the Relate intranet, and trustees are invited to attend ad hoc training events which occur throughout the year.

Trustees Indemnity Insurance

Insurance includes trustee indemnity insurance, which provides against third party claims arising from breach of professional duty by any reason of neglect, error or omission committed in good faith by any of the paid advisors or volunteers.

Page 2

RELATE NORTH EAST LONDON LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Risk Management

A risk register was established in 2008 and continues to be updated quarterly. Where appropriate, systems have been established to mitigate the risks which the charity faces. Significant external risks to funding highlighted in the original risk review led to the development of a strategic plan which allows for the diversification of funding and activities, internal control risks are minimized by the implementation of procedures for authorisation of all transactions and projects. Procedures are in place to ensure compliance with health and safety, and we have engaged a specific Health and Safety Information provider, Peninsula, to help us with this. For a monthly fee they provide all health and safety information, guidelines and help with issues. To comply with requirements for continued BACP accreditation and the Mediation Quality Mark procedures are periodically reviewed and changes made where necessary.

Objects of the charity, principal activities and organisation of our work

The key objectives of the charity are:

To this end the charity provides counselling, education and training, and family mediation services. The charity is affiliated to Relate National Office which provides services and advice to charities following their national strategy in relation to counselling, training and mediation. The family mediation service is affiliated to the College of Mediators, who are members of the Family Mediation Council.

Financial Review

The period covering this year represented a very difficult time for us, the pandemic, which we thought would be over, continued to affect our work as we felt we needed to start back with face to face working but each time we tried, the virus peaked and we had to stop this type of service. Clients continued to be given a service on zoom, but it was a very disruptive period.

We decided not to reinstate the rented rooms previously used as we have four owned/leased locations which could be used as and when it was safe to see clients face to face, but we found that a high proportion of our counselling team were not willing to go back to seeing clients in person, they were much happier using zoom to conduct sessions. As the year went on and the vaccination process enabled relaxation of the rules, more people were asking for face to face appointments and it has been difficult to provide this service for everyone who wants it, as so many practitioners are now working solely on webcam. The challenge is to persuade practitioners to switch to a dual system, whereby they can see clients in person but also conduct zoom sessions in between face to face sessions. We are not alone with this issue, it is common throughout the Relate Federation, as is losing staff members who have taken the time over lockdown to look at their lifestyles, and some have come to the conclusion that they no longer wish to undertake what can be stressful and upsetting work. Again, this is common within the Relate Federation.

We finished the year with a small surplus, this was achieved by the savings made on renting rooms, robust monitoring of other expenses, and savings made through redundancies. We found that client demand was not as strong as pre-pandemic, but as we had slightly fewer staff this worked well with the reduced number of sessions offered. However, we have noticed a change from the New Year when demand has started to improve, and this has led us to increase the number of students on placements – when they qualify we will be in a better position to match practitioners with demand.

Page 3

RELATE NORTH EAST LONDON LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

During the Pandemic we received funding from Essex County Council which allowed us to see up to 15 clients a week, who were having relationship difficulties within their family group. This was ongoing funding from the previous year, and immensely helpful to residents of Essex, who were able to receive up to 12 sessions of therapy, sometimes more if the cases were very complex. We continued to be funded by the Department of Work and Pensions to work under the Reducing Parental Conflict interventions. Both these projects were offered free of charge to clients, which helped us to stay financially stable.

Numbers of clients for counselling in this pandemic year:

Period: 1st April 2021 – 31st March 2022

We provided support for 1,871 people We offered 9,362 sessions, comprising:

Assessments: 960
Family Counselling : 479
PST: 1,143
Counselling for young people: 769
Relationship Counselling: 6,011

Number of clients for mediation in this pandemic year:

Period - 1st April 2021 – 31st March 2022

We provided support for 822 people for MIAMS:

Private: 573
Legal Aid: 249
We conducted 204 mediation cases:
Private Cases: 120
Child Only: 66 cases
Property & Finance: 31 cases
All Issues: 23 cases
Legal Aid Cases: 84
Child Only: 44 cases
Property & Finance: 22 cases
All Issues: 18 cases

Number of children involved in Mediation: 854 Number of children involved in Child Inclusive Mediation: 9

Page 4

RELATE NORTH EAST LONDON LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Future Developments

Our main objective for 2022-2023 is to strengthen our practitioner teams – we do have a steady flow of students wishing to undertake counsellor training, and over time, when they qualify, we will be able to improve our practitioner numbers. We are finding it more difficult to recruit mediators and hope to take on two trainees during this year, who should be able to qualify within 12-18 months.

Our current CEO, having served Relate for almost 20 years, will be retiring in this period, and our Chair of Trustees is planning to stand down later in the year. We have commenced the recruitment process for the CEO as this takes some time, we also have a trustee who is willing to take over the Chairman's duty when the current Chair stands down and becomes a trustee. We are monitoring the events carefully, it is important that the company maintains stability during this period.

We intend to undertake more funding bids during this year – it has been difficult to find the time to do this during the pandemic, but now that issue is not so prevalent we can start to move forward again. We want to expand our client services in all the divisions, including training. We have a number of new training courses planned in the mediation division, including training mediators to provide child only mediation, which is something that we believe to be extremely important and we are uniquely qualified to do, as some of our mediators are also qualified counsellors in children and young peoples’ services. They bring a therapeutic approach to the standard child only mediation which most other providers do not offer.

We hope to continue the Parental Conflict work which we were involved with during the year. The project was a success, and recognised as excellent, celebrated by a House of Commons event chaired by the Minister for Work and Pensions, and the Secretary of State for Work and Pensions. The work will now be carried out in a different format, being offered within Family Hubs under local authority leadership, and we hope to be able to use our expertise to access this.

Public Benefit

In keeping with changing legislative requirements, we have been reviewing our service in the light of the public benefit we offer as a charity. We feel that the work we offer provides families and couples with a haven in which to make some of the most important decisions in their lives, both for themselves and their children.

Taking the route offered through Relate Counselling and Family Mediation, clients are able to work through their issues in a dignified manner without the stresses of outside interventions by family, friends or lawyers, however well meaning. Our Mediation service provides a practical way of divorcing or separating whilst encouraging parents to cooperate with each other, rather than in an adversarial manner often found when solicitors are used. We particularly stress the impact on the entire family if this is not handled in a way that puts the child in the centre. We offer cost effective, helpful ways of working together with an ex- partner to ensure the family, in whatever new grouping, stays together. Parents who reach the conclusion that they are going to separate through the help of their Relate counsellor are better prepared for the changes that will happen in their family. Those who decide to stay together are far more aware of the impact of good communications within the family, and usually become a stronger family unit, much less likely to have problems as their children move through the turbulent teenage years. Our support for children aged 5 – 11 means that fewer children are excluded from school, and children who attend our services are far less disruptive in school, thus enabling other children to progress. Also, much research shows that addressing potential mental health issues at a very young age avoids further interventions later, particularly around the teenage years. Moving on to our youth work for young people aged 11-19, we know that there are enormous public benefits from the work, mainly in developing social responsibility, lessening of antisocial behaviour, high achievement levels, lessening of risky sexual behaviour, and improved mental health levels, in particular around anxiety, bullying and eating disorders

Page 5

RELATE NORTH EAST LONDON LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Transactions and financial position

The Statement of Activities show an income of £925,185 for the year. This year the charity reported a surplus of £7,448 (2021 – surplus of £54,766). Direct expenditure was 50.1% (2021 - 49.9%) of the charity's total expenditure.

Reserves Policy

The Management Committee has examined the charity's requirement for reserves in the light of the main risks in the organisation. The charity has established a policy of holding a minimum of three months costs, with an aim of increasing this to six months costs. As at 31st March 2022 the charity had free reserves, excluding designated funds, of £356,404 which represents 4 months running costs.

Things are returning to normal now that restrictions have been lifted, and having weathered the storm we are optimistic about the future, providing that we can recruit enough new practitioners to cover the shortfall of staff prepared to work on a face to face basis.

Approved by order of the members of the board of Trustees and signed on their behalf by:

................................................ P Whiteside Chairman and Trustee Date: 5 August 2022

Page 6

RELATE NORTH EAST LONDON LIMITED

(A Company Limited by Guarantee)

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2022

The Trustees (who are also the directors of the Company 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. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the members of the board of Trustees and signed on its behalf by:

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................................................
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................................................ P Whiteside Chairman and Trustee Date: 5 August 2022

Page 7

RELATE NORTH EAST LONDON LIMITED (A Company Limited by Guarantee)

INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 MARCH 2022

Independent Examiner's Report to the Trustees of Relate North East London Limited ('the Company')

I report to the charity Trustees on my examination of the accounts of the Company for the year ended 31 March 2022.

Responsibilities and Basis of Report

As the Trustees of the Company (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Company's accounts carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent Examiner's Statement

Since the Company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of (enter body here), which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Page 8

RELATE NORTH EAST LONDON LIMITED (A Company Limited by Guarantee)

INDEPENDENT EXAMINER'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

This report is made solely to the Company's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Company's Trustees those matters I am required to state to them in an Independent Examiner's Report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Company and the Company's Trustees as a body, for my work or for this report.

Signed: Dated: 11 August 2022

Giles Kerkham FCA DChA

Larking Gowen LLP Chartered Accountants Ipswich

Page 9

RELATE NORTH EAST LONDON LIMITED

(A Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022

Note
Income from:
Charitable activities
3
Other trading activities
4
Investments
5
Total income
Expenditure on:
Trading activities
6
Charitable activities
Total expenditure
Net (expenditure)/income before net
gains on investments
Net gains on investments
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2022
£
896,080
-
4,962
901,042
(1,101)
909,871
908,770
(7,728)
12,924
5,196
906,611
5,196
911,807		 Restricted
funds
2022
£
24,143
-
-
24,143
-
21,891
21,891
2,252
-
2,252
7,927
2,252
10,179		 Total
funds
2022
£
920,223
-
4,962
925,185
(1,101)
931,762
930,661
(5,476)
12,924
7,448
914,538
7,448
921,986		 Total
funds
2021
£
981,806
240
1,125
983,171
2,892
925,792
928,684
54,487
279
54,766
859,772
54,766
914,538

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 14 to 30 form part of these financial statements.

Page 10

RELATE NORTH EAST LONDON LIMITED (A Company Limited by Guarantee) REGISTERED NUMBER: 03209287

BALANCE SHEET AS AT 31 MARCH 2022

Note
Fixed assets
Tangible assets
11
Investments
12
Current assets
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within one
year
14
Net current assets
Total net assets
Charity funds
Restricted funds:
Restricted funds
15
Unrestricted funds
15
Total funds		 22,455
236,485
258,940
(61,593)
10,179		 2022
£
521,436
203,203
724,639
197,347
921,986
911,807
921,986		 33,459
276,553
310,012
(71,641)
7,927		 2021
£
525,888
150,279
676,167
238,371
914,538
906,611
914,538

Page 11

RELATE NORTH EAST LONDON LIMITED

(A Company Limited by Guarantee) REGISTERED NUMBER: 03209287

BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2022

The Company was entitled to exemption from audit under section 477 of the Companies Act 2006.

The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

P Whiteside Chairman and Trustee Date: 11 August 2022

The notes on pages 14 to 30 form part of these financial statements.

Page 12

RELATE NORTH EAST LONDON LIMITED

(A Company Limited by Guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Purchase of investments
Interest income
Net cash used in investing activities
Cash flows from financing activities
Net cash provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
The notes on pages 14 to 30 form part of these financial statements		 2022
£
(2,775)
(2,255)
(40,000)
4,962
(37,293)
-
(40,068)
276,553
236,485		 2021
£
42,464
(3,547)
(150,000)
1,125
(152,422)
-
(109,958)
386,511
276,553

Page 13

RELATE NORTH EAST LONDON LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. General information

Relate North East London Limited is a company limited by guarantee incorporated in England and Wales, registration number 03209287. The registered office is 12a Bridge Close, Romford, RM7 0AU.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Relate North East London Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £1.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

2.2 Company status

The charity is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

2.3 Going concern

The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the charity has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the charities ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

Page 14

RELATE NORTH EAST LONDON LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

2. Accounting policies (continued)

2.4 Income

All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Voluntary income is received by way of grants, donations and gifts and is included in full when receivable. Grants, where entitlement is not conditional on the delivery of a specific performance by the charity are recognised when the charity becomes unconditionally entitled to the grant. Interest receivable is included when receivable.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

2.5 Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Costs of income from other activities comprise the costs associated with attracting voluntary income. Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs include those costs associated with organisational administration and compliance with constitutional and statutory requirements.

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Support costs are those costs incurred directly in support of expenditure on the objects of the company. Governance costs are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements.

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources.

2.6 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

Page 15

RELATE NORTH EAST LONDON LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

2. Accounting policies (continued)

2.7 Taxation

No provision for taxation is included in the financial statements as the charitable company is entitled to exemption from tax afforded by Section 505 of the income and Corporation Taxes Act 1988.

2.8 Tangible fixed assets and depreciation

Expenditure on machinery, fixtures, fittings and equipment, and donated goods which exceeds £500 are capitalised.

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment.

No depreciation is provided on freehold buildings based on anticipated value on resale. The properties are reviewed annually for impairment.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Office equipment - 25% of net book value Computer equipment - 25% of net book value

2.9 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of Financial Activities.

2.10 Debtors

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

2.11 Cash at bank and in hand

Cash at bank and 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.

2.12 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Page 16

RELATE NORTH EAST LONDON LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

2. Accounting policies (continued)

2.13 Financial instruments

The Company 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.14 Operating leases

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term.

2.15 Pensions

The Company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Company to the fund in respect of the year.

2.16 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Page 17

RELATE NORTH EAST LONDON LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

3. Income from charitable activities

Unrestricted
funds
2022
£
Counselling - RCO Payment
578,570
Counselling - Schools
29,760
Counselling - Courses
914
Counselling - DWP
64,078
Counselling - Grocery Aid/BWC
36,848
Councelling - CGG funding
12,200
Mediation - Client fees
120,086
Mediation - LSC mediation contract
43,547
FIF Xtra grant funding
-
Coronavirus Job retention Scheme Grant
10,077
896,080
Unrestricted
funds
2021
£
Counselling - RCO Payment
559,797
Counselling - Schools
17,330
Counselling - Courses
1,190
Counselling - DWP
86,032
Counselling - Grocery Aid/BWC
21,559
Mediation - Client fees
112,335
Mediation - LSC mediation contract
34,252
National Lottery grant funding
-
FIF Xtra grant funding
-
Local restrictions support grant
10,000
Coronavirus Job Retention Scheme Grant
109,811
952,306		 Restricted
funds
2022
£
-
-
-
-
-
-
-
-
24,143
-
24,143
Restricted
funds
2021
£
-
-
-
-
-
-
-
10,000
19,500
-
-
29,500		 Total
funds
2022
£
578,570
29,760
914
64,078
36,848
12,200
120,086
43,547
24,143
10,077
920,223
Total
funds
2021
£
559,797
17,330
1,190
86,032
21,559
112,335
34,252
10,000
19,500
10,000
109,811
981,806

Page 18

RELATE NORTH EAST LONDON LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

4. Income from other trading activities

Income from non charitable trading activities

Total Total
funds funds
2022 2021
£ £
Rental income - 240

5. Investment income

Unrestricted
funds
2022
£
Income from listed investments
4,955
Interest received
7
4,962		 Total
funds
2022
£
4,955
7
4,962		 Total
funds
2021
£
1,089
36
1,125

6. Trading expenses

Unrestricted Total Total
funds funds funds
2022 2022 2021
£ £ £
Charity shop expenditure (1,101) (1,101) 2,892

The retail operation ceased during 2019. Expenditure in 2022 was for the service charges and utilities of the retail property which could not be used for the other operations and rent refunded.

Page 19

RELATE NORTH EAST LONDON LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

7. Analysis of expenditure by activities

Counselling
Mediation
Counselling
Mediation		 Activities
undertaken
directly
2022
£
350,061
123,249
473,310
Activities
undertaken
directly
2021
£
337,317
124,922
462,239		 Support
costs
2022
£
410,354
48,098
458,452
Support
costs
2021
£
409,498
54,055
463,553		 Total
funds
2022
£
760,415
171,347
931,762
Total
funds
2021
£
746,815
178,977
925,792

Analysis of direct costs

Practitioner Salaries
Recruitment & Training
Affiliation Fees
Marketing and Advertising		 Counselling
2022
£
298,652
25,482
23,804
2,123
350,061		 Mediation
2022
£
121,248
-
1,054
947
123,249		 Total
funds
2022
£
419,900
25,482
24,858
3,070
473,310

Page 20

RELATE NORTH EAST LONDON LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

7. Analysis of expenditure by activities (continued)

Analysis of direct costs (continued)

Practitioner Salaries
Recruitment & Training
Affiliation Fees
Marketing and Advertising
Analysis of support costs		 Counselling
2021
£
297,330
14,206
24,804
977
337,317		 Mediation
2021
£
120,834
3,551
280
257
124,922		 Total
funds
2021
£
418,164
17,757
25,084
1,234
462,239
Premises
Support Staff Salaries
External Staff Costs
Communication & IT
Legal & Professional
Bad debt write off
Bank & RCO Charges
Other Staff Costs
Irrecoverable VAT
Governance costs		 Counselling
2022
£
53,826
256,540
7,306
35,291
15,310
696
12,041
14,458
9,321
5,565
410,354		 Mediation
2022
£
5,069
4,820
10,446
3,426
3,890
-
2,790
17,657
-
-
48,098		 Total
funds
2022
£
58,895
261,360
17,752
38,717
19,200
696
14,831
32,115
9,321
5,565
458,452

Page 21

(A Company Limited by Guarantee)

RELATE NORTH EAST LONDON LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

7. Analysis of expenditure by activities (continued)

Analysis of support costs (continued)

Premises
Staff Support Costs
External Staff Costs
Communication & IT
Legal & Professional
Bank & RCO Charges
Other Staff Costs
Irrecoverable VAT
Governance costs		 Counselling
2021
£
55,988
264,975
11,901
36,139
10,940
11,282
3,718
5,805
8,750
409,498		 Mediation
2021
£
7,593
14,338
17,508
8,993
2,736
2,350
537
-
-
54,055		 Total
funds
2021
£
63,581
279,313
29,409
45,132
13,676
13,632
4,255
5,805
8,750
463,553

8. Independent examiner's remuneration

The independent examiner's remuneration amounts to an independent examiner fee of £2,950 ( 2021 - £2,800 ).

9. Staff costs

Wages and salaries
Social security costs
Pension costs		 2022
£
636,002
34,603
13,913
684,518		 2021
£
659,656
33,836
13,766
707,258

Included within wages and salaries are statutory redundancy payments totaling £Nil (2021 - £16,417).

The average number of persons employed by the Company during the year was as follows:

2022 2021
No. No.
Employee 62 77

Page 22

RELATE NORTH EAST LONDON LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

9. Staff costs (continued)

No employee received remuneration amounting to more than £60,000 in either year.

The total employment benefits including employer pension contributions of the key management personnel were £169,528 (2021 - £133,132). The key management personnel of the Charity are the Chief Executive, Service Manager, Mediation Manager and in 2022, the Finance Manager.

10. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2021 - £NIL) .

During the year ended 31 March 2022, no Trustee expenses have been reimbursed (2021 - £NIL) .

11. Tangible fixed assets

Cost or valuation
At 1 April 2021
Additions
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the year
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 Freehold
property
£
500,000
-
500,000
-
-
-
500,000
500,000		 Office
equipment
£
48,374
-
48,374
48,374
-
48,374
-
-		 Computer
equipment
£
71,183
2,255
73,438
45,295
6,707
52,002
21,436
25,888		 Total
£
619,557
2,255
621,812
93,669
6,707
100,376
521,436
525,888

Page 23

RELATE NORTH EAST LONDON LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

12.
Fixed asset investments
Valuation
At 1 April 2021
Additions
Revaluations
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021
13.
Debtors
Due within one year
Trade debtors
Prepayments and accrued income
14.
Creditors: Amounts falling due within one year
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income		 2022
£
19,811
2,644
22,455
2022
£
9,894
38,486
1,125
12,088
61,593		 Listed
investments
£
150,279
40,000
12,924
203,203
203,203
150,279
2021
£
31,979
1,480
33,459
2021
£
9,129
45,807
1,825
14,880
71,641

Page 24

RELATE NORTH EAST LONDON LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

15. Statement of funds

Statement of funds - current year

Balance at 1
April 2021
£
Unrestricted funds
Designated funds
Salary fund
40,000
General funds
General Funds
866,611
Total Unrestricted funds
906,611
Restricted funds
FIF Xtra grant
7,927
Total of funds
914,538		 Income
£
Expenditure
£
-
(9,926)
901,042
(898,844)
901,042
(908,770)
24,143
(21,891)
925,185
(930,661)		 Gains/
(Losses)
£
-
12,924
12,924
-
12,924		 Balance at
31 March
2022
£
30,074
881,733
911,807
10,179
921,986

Page 25

RELATE NORTH EAST LONDON LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

15. Statement of funds (continued)

Designated Fund

Salary fund - represents funds that have been earmarked for potential pay increases in in effect from January 2022. £40,000 was transferred from unrestricted funds in the prior year, with £9,926 being spent during 2021/22.

Restricted Funds

FIF Xtra grant fund - FIF Extra is additional support by Essex County Council (ECC) to help children, young people and their families affected by the COVID-19 pandemic.

Relate London North East & Essex offers this counselling services by referral from health professionals or by families calling RLNE & E themselves.

Family Innovation Fund-Xtra (FiF-Xtra) grant enables us to offer early support across a number of key areas including children’s mental health, healthy relationships and coping with change. They are available to children and young people aged between 0 and 19-years, and up to 25-years for young people with Special Educational Needs and/or Disabilities (SEND).

The support we offer can be delivered one-on-one, through group work, as a family group, or as a couple, around understanding Coronavirus; managing and coping with change; separation and loss; managing and coping with anxiety; healthy family relationships and staying active and curious.

The services as stipulated in the grant agreement are aimed at helping young people and families who are not already receiving specialist or statutory support.

Page 26

RELATE NORTH EAST LONDON LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

15. Statement of funds (continued)

Statement of funds - prior year

Unrestricted
funds
Designated
funds
Salary fund
General funds
General Funds
Total
Unrestricted
funds
Restricted
funds
Lottery grant
FIF Xtra grant
Total of funds		 Balance at
1 April 2020
£
-
859,772
859,772
Balance at
1 April 2020
£
-
-
-
859,772		 Income
£
-
953,671
953,671
Income
£
10,000
19,500
29,500
983,171		 Expenditure
£
-
(910,656)
(910,656)
Expenditure
£
(6,455)
(11,573)
(18,028)
(928,684)		 Transfers
in/out
£
40,000
(36,455)
3,545
Transfers
in/out
£
(3,545)
-
(3,545)
-		 Gains/
(Losses)
£
-
279
279
Gains/
(Losses)
£
-
-
-
279		 Balance at
31 March
2021
£
40,000
866,611
906,611
Balance at
31 March
2021
£
-
7,927
7,927
914,538

Page 27

(A Company Limited by Guarantee)

RELATE NORTH EAST LONDON LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

16. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2022
£
Tangible fixed assets
521,436
Fixed asset investments
203,203
Current assets
248,761
Creditors due within one year
(61,593)
Total
911,807		 Restricted
funds
2022
£
-
-
10,179
-
10,179		 Total
funds
2022
£
521,436
203,203
258,940
(61,593)
921,986

Analysis of net assets between funds - prior year

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2021
£
525,888
150,279
302,085
(71,641)
906,611		 Restricted
funds
2021
£
-
-
7,927
-
7,927		 Total
funds
2021
£
525,888
150,279
310,012
(71,641)
914,538

Page 28

RELATE NORTH EAST LONDON LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

17. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Gains on investments
Dividends, interests and rents from investments
Decrease in debtors
(Decrease)/increase in creditors
(Decrease)/increase in provisions
Net cash provided by/(used in) operating activities
18.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
19.
Analysis of changes in net debt
At 1 April
2021
£
Cash at bank and in hand
276,553
276,553		 2022
£
7,448
6,707
(12,924)
(4,962)
11,004
(10,048)
-
(2,775)
2022
£
236,485
236,485
Cash flows
£
(40,068)
(40,068)		 2021
£
54,766
8,182
(279)
(1,125)
4,652
(10,999)
(12,733)
42,464
2021
£
276,553
276,553
At 31 March
2022
£
236,485
236,485

Page 29

RELATE NORTH EAST LONDON LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

20. Operating lease commitments

At 31 March 2022 the Company had commitments to make future minimum lease payments under noncancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 2022
£
27,858
30,823
58,681		 2021
£
36,790
58,682
95,472

21. Related party transactions

The Company has not entered into any related party transaction during the year.

Page 30