Company no. 03799698 Charity no. 1079390
The Severnside Initiative for Psychotherapy
Report and Unaudited Financial Statements
31 August 2021
The Severnside Initiative for Psychotherapy
Reference and administrative details
For the year ended 31 August 2021 Company number 03799698 Charity number 1079390 Registered office and 11 Orchard Street operational address Bristol BS1 5EH Trustees Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows: Mark Budden David Bunker Eva Gell Chair Lorraine Melrose Appointed 21 December 2020 Jonathan Olds Appointed 4 January 2022 Jeremy Thomas Resigned 1 March 2021 Melanie Woolgar Resigned 5 October 2021 Company secretary Rebecca Johnson Independent Godfrey Wilson Limited examiners Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD
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The Severnside Initiative for Psychotherapy
Report of the trustees
For the year ended 31 August 2021
Reference and administrative information set out on page 1 forms part of this report. The financial statements have been prepared in accordance with the accounting policies set out in notes to the financial statements and comply with the charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland effective 1 January 2019.
The trustees, who are also directors for the purposes of company law, have pleasure in presenting their report together with the unaudited financial statements of the charity for the year ended 31 August 2021.
The charity is a private company limited by guarantee and operates under the name of The Severnside Institute for Psychotherapy (SIP). The governing documents are the Memorandum and Articles of Association.
OBJECTIVES AND ACTIVITIES
Our objects are to provide, or assist in the provision of, psychotherapeutic treatment and related services to members of the public. In the furtherance of these objects, SIP provides a range of services. It provides information on both psychoanalytic and psychodynamic psychotherapy, maintains a register of members qualified to provide it and offers an assessment and referral service for those who are interested in pursuing therapy. SIP also accumulates funds to provide low-cost therapy to people unable to afford the full cost of the treatment they require.
SIP offers a range of training opportunities in order to increase the availability of qualified and ethical practitioners in the Severnside region. SIP’s professional training is regulated by the British Psychoanalytic Council (BPC). Qualification in psychoanalytic psychotherapy or psychodynamic psychotherapy leads to registration with the BPC. SIP provides an ethical framework for its practitioners and appropriate Continuing Professional Development (CPD) opportunities in order to safeguard the public by ensuring that members work in a competent and ethical manner. These activities are undertaken after consideration of the Charity Commission’s guidance on public benefit, and it is hence the opinion of the trustees that the organisation operates for the public benefit.
SIP also operates as a professional association for its members, providing opportunities for mutual support and the furtherance of their knowledge and understanding of the profession. It helps them participate in national activities concerned with the provision and regulation of psychotherapy.
SIP has had sole management responsibility for 11 Orchard Street. It manages the building and lets the 8 consulting rooms to therapists, as well as letting the large meeting room out for meetings and events. It also uses the building for training. It is currently in negotiation with The Lark Trust to buy the building at the end of the lease and we are extremely grateful to Mark Budden for the work involved.
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The Severnside Initiative for Psychotherapy
Report of the trustees
For the year ended 31 August 2021
MANAGEMENT OF THE ORGANISATION
At 31 August 2021, SIP had a total of 68 members (includes 6 pre-retirement members), the majority being active and registered practitioners, together with an additional 1 non-practising associate, 8 clinical associates, 17 students and 4 co-opted associates. The membership elects a management structure, which is responsible for the running of the organisation. Since April 2016, when our new management structure was implemented, the organisation has been supported by employed staff members.
Honorary Officers are the Chair, the Chair of Education and the Chair of Membership, who is also responsible for SIP’s Consultation and Referral Service, amongst other things. A significant proportion of the membership are also involved in the work of committees giving voluntarily of their time to ensure the sound running and further development of the organisation.
During the 20/21 financial year, Olivia Baxter was Marketing and Membership Co-ordinator, Beckie Johnson was Finance Manager and Vincent Finney continued as Training Co-ordinator.
The trustees are grateful to the Officers, committee members and staff who run the organisation. The trustees acknowledge that a huge amount of work is undertaken voluntarily in the management of the organisation and the provision of training and other services. SIP remains well served by its Officers and Committee Chairs, and the trustees continue to be very appreciative of their commitment and generosity of time and actions. The trustees are also pleased to acknowledge the contribution of the staff.
Clare Harris, Orchard Street Development Manager, has overseen the maintenance of the building and the management of Orchard Street Therapy Rooms (the part of Severnside’s operations which rents out rooms in the building to therapists and therapy organisations) as well as our work towards purchasing the building. Olivia Baxter’s efficiency and care in administering and promoting the use of Orchard Street, and in managing the detailed adjustments needed as government guidelines and regulations (as well of those from our regulatory bodies) fluctuated, has made it possible for us, while still taking a significant financial hit through loss of rental income, to continue to be tolerably healthy through very difficult times. The Building Purchase Group (Clare Harris, Mark Budden and Hilary Lindsay) have been preparing the ground for negotiations with The Lark Trust (our landlords) over purchasing the building. The Fundraising Group (Clare Harris, Marta Bolognani and Paul Hoggett) have not put on any events in this reporting year but have been preparing to make applications for capital grants when, and if, a purchase price is agreed with The Lark Trust.
PERFORMANCE
The trustees have, of course, had to give considerable thought to the impact of the COVID-19 pandemic on the charity’s current and future financial position. They successfully sought a reduction of the rent for 11 Orchard Street for May and June, but were not able to secure a further rent reduction beyond that time. They recognised that:
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There would be a substantial decline in the income to the organisation from renting rooms to therapists. This has indeed happened, in spite of the excellent efforts to keep the building in operation (and in compliance with Government health advice) by Clare Harris and Olivia Baxter (as described above); and
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There would be a need to use some of the organisation’s reserves to offset this loss of income, meaning that the percentage held in reserve would fall pro tempore.
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The Severnside Initiative for Psychotherapy
Report of the trustees
For the year ended 31 August 2021
The work of the organisation has continued steadily across the past year in all areas. The trustees are confident that standards of service and training have been maintained. We continue to be a viable and effective charitable organisation well able to fulfill its charitable objectives.
As in previous years, the external environment continues to have an impact on the organisation. SIP continues to play its part as a Member Institution of the British Psychoanalytic Council.
The detailed work of the organisation is reported on in full at the AGM but we look in brief at the main areas of activities during the year ended 31 August 2021 in the following paragraphs.
Training
The trustees are extremely grateful to those who have worked so hard running courses. The range of professional training courses we offer reflects the developing patterns of interest in psychoanalytically informed therapy in the broader community and indicates the ability of SIP to be malleable and responsive in pursuit of its objectives. Regular meetings are held between the Leads of all trainings, chaired by the Chair of Education. The organisation is aware of the fact that running two trainings can result in a duplication of effort and resources. Accordingly, developments have been underway in the course of the reporting period to see how far elements of the training can be combined into a single curriculum (and how far not). The new, partially combined, curriculum should avoid duplication of effort, both by teaching staff and within the organisational structure, where roles and functions can be streamlined accordingly. As part of this work, a Strategy Review Morning was organised for all those involved in running SIP and one outcome from this review will be the adoption in the coming year of Statements of our Mission, Values and Aims which will provide the groundwork for developing a business plan for the coming years.
Membership activities
Continuing Professional Development, which is a requirement of professional registration for psychoanalytic and psychodynamic psychotherapists, consists of a range of opportunities for members to enhance their understanding of psychoanalytic issues and share clinical experience. SIP provides clinical courses, as well as study days and workshops, which offer the opportunity to explore relevant topics, sometimes with outside speakers and sometimes when members are invited to give papers. A number of successful CPD events, including our annual lecture, took place this year.
Consultation and Referral Service
Clinical services offered by members were rationalised this year through the continued development of the Consultation and Referral Service. This is undertaken by elected Area Representatives covering all localities from which SIP draws members. Referrals are managed by the Administrator. This is both important for trainees, who can build up their clinical experience, and also a contribution to public well-being at a time when such low-cost psychotherapy services are hugely in demand. The trainees offer low cost sessions and SIP is also supporting a scheme, which started in January 2020, called Orchard Therapy. 10 qualified therapists are offering 10 free sessions per individual who have been recommended for therapy by their GPs. The trustees are very grateful to Ally Kessler, whose brain child this was, and to Nicola Padel and Marta Bolognani who have helped set up this service.
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The Severnside Initiative for Psychotherapy
Report of the trustees
For the year ended 31 August 2021
Subsidised treatment and training
SIP remains committed to the provision of subsidised treatment for those who need therapy but cannot afford full professional fees. Funds are managed and administered by the Bursary Committee and made available through the Reduced Fee Scheme, and Training Patient and Bursary Fund, which supports trainees with the cost of supervision and sessions with training patients. Regular donations received from members provide an important source of funding for this work. In addition to formal subsidies, many patients benefit from reduced fees offered by individual therapists.
Once again, SIP has offered a limited number of new bursaries to help with the cost of fees for the Introductory Course, named The Iris Tute Bursaries, in remembrance of the work and generosity of a member of SIP, without whom SIP would not have its city centre home at 11 Orchard Street.
Risk management
The charity is taking the following steps to mitigate the threats that COVID-19 may pose to the organisation:
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Providing members with regular advice on best practice as recommended by the British Psychoanalytic Council. This covers such things as the use of various forms of media to obviate the need for face-to-face therapy, and where face-to-face therapy continues to be used, the health-protection measures that need to be implemented;
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Ensuring that 11 Orchard Street remains compliant with Government and BPC recommendations on ventilation, sterilisation, social distancing and other health-related measures; and
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Seeking payment from insurers and donations from funders to attempt to offset income-loss from declining room rental income.
The trustees continue to follow Charity Commission advice regarding risk management and good practice, and keep a register identifying major risks that apply to SIP. As SIP has now negotiated an ongoing lease with The Lark Trust and our financial position has improved since the previous year, we have downgraded these items on the risk register. The Risk Register is examined at each of the trustees’ Meetings. In the prior year, the dominant anxiety was around the renewal of the lease and the associated issues of location for the complex work of SIP. That risk has receded. However, the trustees are well aware of the fact that issues like government policy on mental health and the training of mental health practitioners could have a huge impact on SIP’s work. As a result, scanning the risk-horizon remains a high priority for the trustees.
At the time of writing, trustees have no idea how long the pandemic of COVID-19 will last, no verifiable idea of its impact on the use of the building and no idea of its impact on the demand for training places nor the demand for therapy. This makes planning for the future as much an item of faith in our operations and social value as anything. Trustees are in touch with other Member Institutions of the British Psychoanalytic Council, and are well aware of the dilemmas and discussions taking place across the psychotherapy profession. For this and other reasons, the trustees consider that the charity will continue as a going concern for a period of at least 12 months from the date on which these financial statements are approved. This confidence is underscored by the fact that:
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The charity holds General Fund reserves of £93,725;
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The charity is actively seeking additional financial support; and
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The trustees therefore consider it appropriate to adopt the going concern basis for the preparation of the accounts, as detailed in note 1(b) to the financial statements.
In this context, trustees would like extend their thanks to, and acknowledge the hard work done by Clare Harris, supported by Olivia Baxter, in contacting and dealing with insurers and Bristol City Council in seeking to secure appropriate financial support during the COVID-19 pandemic.
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The Severnside Initiative for Psychotherapy
Report of the trustees
For the year ended 31 August 2021
Fees and budgets
Fees were reviewed for all elements of the training, and a small increase was applied for the 20202021 financial year.
The basic membership fee for the year was not increased. Trustees and the Executive are keeping fees under review. In particular, at a time when COVID-19 has had a huge impact on members’ working habits and given rise to great professional debate, it was felt that the additional burden of a fee-increase should be avoided for the time being.
FINANCIAL REVIEW
A detailed summary of accounts for the year ended 31 August 2021, prior to revaluation of investments and transfers between funds, has been provided by the Finance Manager.
General funds (unrestricted)
In respect of general funds, SIP generates income from three main sources: subscriptions from the members, fees charged for training and courses, and room rental for psychotherapy purposes. Expenditure constitutes staffing, maintenance of the premises, expenses for committee work, fees to the British Psychoanalytic Council and fees to seminar leaders on the various courses. Budgets are drawn up to ensure that income will cover outgoing expenses and maintain a suitable reserve.
At the year end, the general fund has a total value of £93,725.
Subsidised Treatment and Training Funds (restricted)
The Subsidised Treatment and Training Funds (STTF) are comprised of two amalgamated funds: the Training Patient and Bursary Fund (TPBF) and the Reduced Fee Scheme (RFS).
The STTF fund supported the low-cost work of 8 members (including student associates), and their patients, with payments totalling £7,128.
At the year end, the Subsidised Treatment and Training Fund has a total value (primarily cash and investments) of £37,159.
At the year end, the Welsh Fund stood at £20,000.
Building Purchase Fund (restricted)
The Building Purchase Fund is a restricted fund in which funds raised for the potential future purchase of a building for SIP are held. The value of the Building Purchase Fund at the year end was £24,003.
Building Purchase Fund (designated)
The Building Purchase Fund (designated) was created for the surplus from the OSTR room rental strand, with the purpose of adding to the restricted Building Purchase Fund. The designation of these funds is reversible, should SIP require the funds for other expenditure deemed more important by the trustees. The value of the designated Building Purchase Fund at the year end was £79,458.
Total value of restricted and unrestricted funds
The total value of restricted and unrestricted funds at the year end was £234,345.
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The Severnside Initiative for Psychotherapy
Report of the trustees
For the year ended 31 August 2021
Reserves
Reserves of general unrestricted funds at the year end were £93,725.
Our policy is to hold general reserves amounting to at least 40% of the previous year’s expenditure (excluding restricted funds). Our reserves at 31 August 2021 were at 55% and therefore the reserves at the balance sheet date meet with this requirement.
The trustees are satisfied that the books are kept in good order and the monitoring of income and expenditure within the various categories is suitably detailed.
Trustees
The Board of Trustees holds the ultimate responsibility for directing the affairs of SIP, and ensuring that it is solvent, well-run and delivering the charitable outcomes for which it has been set up. The trustees are charged with ensuring that SIP complies with charity and company law and with the requirements of the Charity Commission as regulator; in particular ensuring that SIP prepares reports on what it has achieved and annual returns and accounts as required by law. The trustees oversee and review the Executive Committee's management of SIP specifically to ensure that it meets the objectives set out in the Memorandum of Association and complies with the Articles of Association and with both charity and company law.
The Board of trustees is elected by the membership at the Annual General Meeting.
The trustees who have served the charity from 1 September 2020 until the date on which the accounts were signed are as follows:
Mark Budden David Bunker Eva Gell Chair Lorraine Melrose Appointed 21 December 2020 Jonathan Olds Appointed 4 January 2022 Jeremy Thomas Resigned 1 March 2021 Melanie Woolgar Resigned 5 October 2021
The trustees continue to look for new members to join the Board to ensure an appropriate diversity and mix of talent and experience.
New trustees are found from the contacts and networks of existing trustees with an emphasis on those individuals with skills and experience which are of value to the charity.
This report has been prepared in accordance with the provisions of the Companies Act 2006 applicable to companies subject to the small companies’ regime.
Statement of responsibilities of the trustees
The trustees (who are also directors of the charity 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, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
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The Severnside Initiative for Psychotherapy
Report of the trustees
For the year ended 31 August 2021
Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing those financial statements the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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▪ observe the methods and principles in the Charities SORP;
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make judgements and accounting estimates that are reasonable and prudent;
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state whether applicable UK accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Companies Act 2006. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.
Independent examiners
Godfrey Wilson Limited were re-appointed as independent examiners to the charitable company during the year and have expressed their willingness to continue in that capacity.
Approved by the trustees on 12 February 2022 and signed on their behalf by
Eva Gell
Eva Gell - Chair
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Independent examiner's report
To the trustees of
The Severnside Initiative for Psychotherapy
I report to the trustees on my examination of the accounts of The Severnside Initiative for Psychotherapy (the charitable company) for the year ended 31 August 2021, which are set out on pages 10 to 24.
Responsibilities and basis of report
As the trustees of the charitable company (and also 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 charitable 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 charitable company's accounts as 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
Godfrey Wilson Limited also provides payroll services to the charitable company. I confirm that as a member of the ICAEW I am subject to the FRC’s Revised Ethical Standard 2016, which I have applied with respect to this engagement.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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(1) accounting records were not kept in respect of the charitable company as required by section 386 of the 2006 Act; or
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(2) the accounts do not accord with those records; or
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(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
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(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.
Date: 12 February 2022 Rob Wilson FCA Member of the ICAEW
For and on behalf of: Godfrey Wilson Limited Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD
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The Severnside Initiative for Psychotherapy
Statement of financial activities (incorporating an income and expenditure account)
For the year ended 31 August 2021
| Restricted Unrestricted Note £ £ Income from: Donations and legacies 3 18,535 26,545 Charitable activities: Training - 92,468 Membership - 29,401 Orchard Street management fund - 42,077 CPD and events - 2,461 Consultation and referral service - 3,134 Investments - 968 Other income - 10,000 Total income 18,535 207,054 Expenditure on: Raising funds - 307 Charitable activities: Training - 82,252 Membership - 21,092 Orchard Street management fund - 39,448 CPD and events - 5,014 Consultation and referral service - 7,972 Subsidised treatment and training fund 11,891 990 Total expenditure 5 11,891 157,075 Net gains / (losses) on investments 127 - Net income and net movement in funds 6 6,771 49,979 Reconciliation of funds: Total funds brought forward 54,391 123,204 Total funds carried forward 61,162 173,183 |
2021 Total £ 45,080 92,468 29,401 42,077 2,461 3,134 968 10,000 225,589 307 82,252 21,092 39,448 5,014 7,972 12,881 168,966 127 56,750 177,595 234,345 |
2020 Total £ 71,521 73,744 30,589 45,772 2,522 4,931 524 13,002 |
|---|---|---|
| 242,605 | ||
| 1,949 78,211 22,182 39,599 6,117 7,184 14,184 |
||
| 169,426 | ||
| (216) | ||
| 72,963 104,632 |
||
| 177,595 |
All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 15 to the accounts.
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The Severnside Initiative for Psychotherapy
Balance sheet
As at 31 August 2021
| Note Fixed assets Tangible assets 9 Investments 10 Current assets Debtors 11 Cash at bank and in hand Liabilities Creditors: amounts falling due within 1 year 12 Net current assets Net assets 14 Funds 15 Restricted funds Unrestricted funds Designated funds General funds Total charity funds |
£ 66,552 267,838 334,390 (110,989) |
2021 £ 2,690 8,254 10,944 223,401 234,345 61,162 79,458 93,725 234,345 |
2020 £ - 8,127 |
|---|---|---|---|
| 8,127 88,824 186,856 |
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| 275,680 (106,212) |
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| 169,468 | |||
| 177,595 | |||
| 54,391 59,458 63,746 |
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| 177,595 |
The directors are satisfied that the company is entitled to exemption from the provisions of the Companies Act 2006 (the Act) relating to the audit of the financial statements for the year by virtue of section 477(2), and that no member or members have requested an audit pursuant to section 476 of the Act.
The directors acknowledge their responsibilities for:
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(i) ensuring that the Company keeps proper accounting records which comply with section 386 of the Act; and
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(ii) preparing financial statements which give a true and fair view of the state of affairs of the Company as at the end of the financial year and of its profit or loss for the financial year in accordance with the requirements of section 393, and which otherwise comply with the requirements of the Act relating to financial statements, so far as applicable to the company.
These accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.
Approved by the trustees on 12 February 2022 and signed on their behalf by
Eva Gell
Eva Gell - Chair
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The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2021
1. Accounting policies
a) Basis of preparation
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities in preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Severnside Initiative for Psychotherapy 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 note.
b) Going concern basis of accounting
The accounts have been prepared on the assumption that the charitable company is able to continue as a going concern. However, the COVID-19 pandemic has had a profound impact on the global economy, and has in turn affected the charitable company. The trustees have considered the impact of this issue on the charitable company’s current and future financial position. The charity holds unrestricted, general reserves of £93,725 and a cash balance of £267,838. The trustees consider that the charity has sufficient cash reserves to continue as a going concern for a period of at least 12 months from the date on which these financial statements are approved.
c) Income
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be measured reliably.
Income from the government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
Income received in advance of provision of training, membership and subscriptions is deferred until criteria for income recognition are met.
d) Donated services and facilities
Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item, is probable and the economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised.
On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
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The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2021
1. Accounting policies (continued)
e) Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity: this is normally upon notification of the interest paid or payable by the bank.
f) Funds accounting
Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the charity.
g) Expenditure and irrecoverable VAT
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
h) Allocation of support and governance costs
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Governance costs are the costs associated with the governance arrangements of the charity, including the costs of complying with constitutional and statutory requirements and any costs associated with the strategic management of the charity’s activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities on the following basis, being the allocation of support staff time:
| 2021 | 2020 | |
|---|---|---|
| Raising funds | 0% | 0% |
| Charitable activities: | ||
| Training | 50% | 51% |
| Membership | 18% | 15% |
| Orchard Street management fund | 10% | 10% |
| CPD and events | 5% | 7% |
| Consultation and referral service | 10% | 10% |
| Subsidised treatment and training fund | 7% | 7% |
i) Tangible fixed assets
Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:
Computer equipment
3 years
Items of equipment are capitalised where the purchase price exceeds £500.
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The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2021
1. Accounting policies (continued)
j) Investments
Investments in quoted shares, traded bonds and similar investments are measured initially at cost and subsequently at fair value (their market value). The statement of financial activities includes the net gains and losses arising on revaluations and disposals throughout the year.
k) Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
l) Cash at bank and in hand
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
m) Creditors
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
n) Financial instruments
The charitable 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 recognised at amortised cost using the effective interest method.
o) Pension costs
The company operates a defined contribution pension scheme for its employees. There are no further liabilities other than that already recognised in the SOFA.
p) Accounting estimates and key judgements
In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.
Depreciation
As described in note 1i to the financial statements, depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life.
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The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2021
2. Prior period comparatives: statement of financial activities
| Income from: Donations and legacies Charitable activities: Training Membership Orchard Street management fund CPD and events Consultation and referral service Investments Other income Total income Expenditure on: Raising funds Charitable activities: Training Membership Orchard Street management fund CPD and events Consultation and referral service Subsidised treatment and training fund Total expenditure Net gains on investments Net income and net movement in funds |
Restricted £ £ 45,455 26,066 - 73,744 - 30,589 - 45,772 - 2,522 - 4,931 319 205 - 13,002 45,774 196,831 1720 229 - 78,211 - 22,182 - 39,599 - 6,117 - 7,184 13,559 625 15,279 154,147 (216) - 30,279 42,684 Unrestricted |
2020 Total £ 71,521 73,744 30,589 45,772 2,522 4,931 524 13,002 |
|---|---|---|
| 242,605 | ||
| 1,949 78,211 22,182 39,599 6,117 7,184 14,184 |
||
| 169,426 | ||
| (216) | ||
| 72,963 |
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The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2021
3. Income from donations and legacies
| Donations Grants Gifts in kind Total income from donations and legacies Prior period comparative: Donations Grants Gifts in kind Total income from donations and legacies |
Restricted £ £ 18,535 1,241 - 6,804 - 18,500 18,535 26,545 Restricted £ £ 45,455 2,666 - 4,900 - 18,500 45,455 26,066 Unrestricted Unrestricted |
2021 Total £ 19,776 6,804 18,500 |
|---|---|---|
| 45,080 | ||
| 2020 Total £ 48,121 4,900 18,500 |
||
| 71,521 |
*Gifts in kind represents the rent subsidy provided by the charity's landlord, The Lark Trust.
4. Government grants
In the current year, the charitable company received government grants, defined as emergency COVID-19 funding from Bristol City Council, totalling £6,800 (2020: £4,900).
16
The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2021
5. Total expenditure
| Fundraising costs Staff costs (note 7) Seminar leader and freelance fees Travel and subsistence Event costs Membership fees and subscriptions Premises costs Treatment and training subsidies Other direct costs Library costs Office expenses Legal and professional Bank charges Depreciation Sub-total Allocation of support and governance costs Total expenditure |
Raising funds £ 307 - - - - - - - - - - - - - |
Membership £ £ - - 27,101 9,746 28,896 - - - - - 1,749 6,273 9,990 - - - - - - - 489 29 - - - - - - 68,225 16,048 14,027 5,044 82,252 21,092 Training |
Membership £ £ - - 27,101 9,746 28,896 - - - - - 1,749 6,273 9,990 - - - - - - - 489 29 - - - - - - 68,225 16,048 14,027 5,044 82,252 21,092 Training |
£ - 5,233 43 22 - - 31,429 - - - 12 - - - Orchard Street management fund |
CPD and events £ - 2,709 790 - - - - - - - 113 - - - |
£ - 5,233 30 - - - - - - - - - - - Consultation and referral service |
£ - 3,791 - - - - - 7,128 - - - - - - Subsidised treatment and training fund |
Support and governance costs £ - 3,431 2,672 8 - 1,680 9,155 - - 688 5,223 3,183 468 1,345 |
2021 Total £ 307 57,244 32,431 30 - 9,702 50,574 7,128 - 688 5,866 3,183 468 1,345 |
|---|---|---|---|---|---|---|---|---|---|
| 307 - |
68,225 14,027 |
16,048 5,044 |
36,739 2,709 |
3,612 1,402 |
5,263 2,709 |
10,919 1,962 |
27,853 (27,853) |
168,966 - |
|
| 307 | 82,252 | 21,092 | 39,448 | 5,014 | 7,972 | 12,881 | - | 168,966 |
Total governance costs were £3,093 (2020: £2,819)
17
The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2021
5. Total expenditure
| Prior year comparative Fundraising costs Staff costs (note 7) Seminar leader and freelance fees Travel and subsistence Event costs Membership fees and subscriptions Premises costs Treatment and training subsidies Other direct costs Library costs Office expenses Legal and professional Bank charges Sub-total Allocation of support and governance costs Total expenditure |
Raising funds £ 342 - 202 - 1,135 - - - - - - - 270 |
Membership £ £ - - 25,967 9,205 22,387 - 3,290 81 150 - 2,849 9,101 9,990 - - - 400 - - 61 481 - - - - - 65,514 18,448 12,697 3,734 78,211 22,182 Training |
Membership £ £ - - 25,967 9,205 22,387 - 3,290 81 150 - 2,849 9,101 9,990 - - - 400 - - 61 481 - - - - - 65,514 18,448 12,697 3,734 78,211 22,182 Training |
£ - 4,701 - 38 - - 32,371 - - - - - - Orchard Street management fund |
CPD and events £ - 2,594 556 63 1,161 - - - - - - - - |
£ - 4,694 - - - - - - - - - - - Consultation and referral service |
£ - 3,381 - - - - - 9,060 - - - - - Subsidised treatment and training fund |
Support and governance costs £ - 3,422 - 196 909 - 8,510 - - 859 3,889 6,931 180 |
2020 Total £ 342 53,964 23,145 3,668 3,355 11,950 50,871 9,060 400 920 4,370 6,931 450 |
|---|---|---|---|---|---|---|---|---|---|
| 1,949 - |
65,514 12,697 |
18,448 3,734 |
37,110 2,489 |
4,374 1,743 |
4,694 2,490 |
12,441 1,743 |
24,896 (24,896) |
169,426 - |
|
| 1,949 | 78,211 | 22,182 | 39,599 | 6,117 | 7,184 | 14,184 | - | 169,426 |
18
The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2021
6. Net movement in funds
This is stated after charging:
| Depreciation Operating lease payments Trustees' remuneration Trustees' reimbursed expenses Independent examiner's remuneration |
2021 £ 1,345 18,615 Nil Nil 1,980 |
2020 £ - 18,961 Nil 74 1,860 |
|---|---|---|
Trustees' reimbursed expenses in the prior period comprised travel costs for 2 trustees.
7. Staff costs and numbers
Staff costs were as follows:
| Salaries and wages Social security costs Pension costs |
2021 £ 55,768 87 1,389 57,244 |
2020 £ 52,690 - 1,274 |
|---|---|---|
| 53,964 |
No employee earned more than £60,000 during the year.
The key management personnel of the charitable company comprise the trustees. The total employee benefits of the key management personnel were £Nil (2020: £Nil).
Staff numbers were as follows:
| Average head count Full time equivalents |
2021 No. 3.0 2.1 |
2020 No. 3.0 |
|---|---|---|
| 2.1 |
8. Taxation
The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.
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The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2021
| 9. Tangible fixed assets Cost At 1 September 2020 Additions in year Disposals At 31 August 2021 Depreciation At 1 September 2020 Charge for the year On disposals At 31 August 2021 Net book value At 31 August 2021 At 31 August 2020 10. Investments Market value at 1 September Unrealised gains / (losses) Market value at 31 August Historical cost: At 31 August 11. Debtors Trade debtors Prepayments Accrued income |
2021 £ 8,127 127 8,254 8,071 2021 £ 47,878 7,435 11,239 66,552 |
£ - 4,035 - Computer equipment |
|---|---|---|
| 4,035 | ||
| - 1,345 - |
||
| 1,345 | ||
| 2,690 | ||
| - | ||
| 2020 £ 8,343 (216) |
||
| 8,127 | ||
| 8,071 | ||
| 2020 £ 57,712 6,029 25,083 |
||
| 88,824 |
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The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2021
12. Creditors : amounts due within 1 year
| 12. Creditors : amounts due within 1 year | ||
|---|---|---|
| Trade creditors Accruals Other taxation and social security Deferred income (see note 13) Other creditors 13. Deferred income At 1 September 2020 Deferred during the year Released during the year At 31 August 2021 |
2021 £ 3,620 6,650 843 98,868 1,008 110,989 2021 £ 98,761 98,868 (98,761) 98,868 |
2020 £ 2,740 3,300 520 98,761 891 |
| 106,212 | ||
| 2020 £ 84,074 98,761 (84,074) |
||
| 98,761 |
Deferred income relates to income invoiced in advance for training courses, memberships and subscriptions.
14. Analysis of net assets between funds
| Tangible fixed assets Investments Current assets Current liabilities Net assets at 31 August 2021 Prior period comparative Investments Current assets Current liabilities Net assets at 31 August 2020 |
£ - 8,254 52,908 - 61,162 £ 8,127 46,264 - 54,391 Restricted funds Restricted funds |
£ - - 79,458 - 79,458 £ - 59,458 - 59,458 Designated funds Designated funds |
£ 2,690 - 202,024 (110,989) 93,725 £ - 169,958 (106,212) 63,746 General funds General funds |
Total funds £ 2,690 8,254 334,390 (110,989) |
|---|---|---|---|---|
| 234,345 | ||||
| Total funds £ 8,127 275,680 (106,212) |
||||
| 177,595 |
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The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2021
15. Movements in funds
| Restricted funds STTF Building purchase fund Total restricted funds Designated funds: Building purchase fund Total designated funds General funds Total unrestricted funds Total funds Unrestricted funds |
£ 45,215 9,176 54,391 59,458 59,458 63,746 123,204 177,595 At 1 September 2020 |
Income £ 3,708 14,827 18,535 - - 207,054 207,054 225,589 |
£ £ (11,891) 127 - - (11,891) 127 - - - (157,075) - (157,075) - (168,966) 127 Gain on investments Expenditure |
£ £ (11,891) 127 - - (11,891) 127 - - - (157,075) - (157,075) - (168,966) 127 Gain on investments Expenditure |
£ - - - 20,000 20,000 (20,000) - - Transfers between funds |
£ 37,159 24,003 At 31 August 2021 |
|---|---|---|---|---|---|---|
| 127 | 61,162 | |||||
| 79,458 | ||||||
| - | 79,458 | |||||
| - | 93,725 | |||||
| - | 173,183 | |||||
| 127 | 234,345 |
Purposes of restricted funds
STTF (Subsidised Treatment and Training Fund)
The Subsidised treatment and Training Funds (STTF) are comprised of two amalgamated funds: the Training Patient and Bursary fund (TPBF) and the Reduced Fee Scheme, to which had been added last year The Welsh Fund.
Building purchase fund
This fund is for monies raised for the potential future purchase of a building for the charity.
Purposes of designated funds
Building purchase fund
This fund is for monies set aside from general funds surplus, for the potential future purchase of a building for the charity.
22
The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2021
15. Movements in funds (continued)
| Prior period comparative Restricted funds STTF Building purchase fund Total restricted funds Designated funds: Building purchase fund Total designated funds General funds Total unrestricted funds Total funds Unrestricted funds |
At 1 September 2019 £ 23,612 500 24,112 37,141 37,141 43,379 80,520 104,632 |
Income £ 35,378 10,396 45,774 - - 196,831 196,831 242,605 |
£ £ (13,559) (216) (1,720) - (15,279) (216) - - - - (154,147) - (154,147) - (169,426) (216) Gain on investments Expenditure |
£ £ (13,559) (216) (1,720) - (15,279) (216) - - - - (154,147) - (154,147) - (169,426) (216) Gain on investments Expenditure |
£ - - - 22,317 22,317 (22,317) - - Transfers between funds |
£ 45,215 9,176 At 31 August 2020 |
|---|---|---|---|---|---|---|
| (216) | 54,391 | |||||
| - | 59,458 | |||||
| - | 59,458 | |||||
| - | 63,746 | |||||
| - | 123,204 | |||||
| (216) | 177,595 |
16. Operating lease commitments
The charity had operating leases at the year end with total future minimum lease payments as follows:
| Amount falling due: Within 1 year Within 1 - 5 years |
2021 £ 18,615 7,708 26,323 |
2020 £ 18,961 26,324 |
|---|---|---|
| 45,285 |
17. Related party transactions
Mark Budden and Eva Gell, trustees, provide teaching services on the training courses provided by the charitable company. They received payments totalling £1,564 and £1,648 respectively (2020: £934 and £1,885) for teaching fees. Neither trustee received payments in their capacity as trustees. No amounts were owing at 31 August 2021 (2020: £Nil).
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The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2021
18. Contingent liabilities
The Severnside Initiative for Psychotherapy leases the Orchard Street premises from another charity, Lark Trust. The rent is subsidised on the basis that at the conclusion of the lease in 2023, The Severnside Initiative for Psychtherapy will purchase the premises. As at the balance sheet date, such subsidies amounted to £42,000. This amount would become chargeable should the charity decide not to purchase the property.
As it is deemed likely, on balance, that the property will be purchased as planned, the amount has been disclosed as a contingent liability only and has not been recognised in the statement of financial activities.
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