Company no. 03799698 Charity no. 1079390
The Severnside Initiative for Psychotherapy Report and Unaudited Financial Statements
31 August 2022
The Severnside Initiative for Psychotherapy
Reference and administrative details
For the year ended 31 August 2022
| 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 | ||
| Hazel Millar | Appointed 12 February 2022 | |
| Jonathan Olds | Appointed 4 January 2022 | |
| Melanie Woolgar | Resigned 5 October 2021 | |
| Company secretary | Nicola Coates | Appointed 1 June 2022 |
| Rebecca Johnson | Resigned 26 May 2022 | |
| Independent | Godfrey Wilson Limited | |
| examiners | Chartered accountants and statutory auditors | |
| 5th Floor Mariner House | ||
| 62 Prince Street | ||
| Bristol | ||
| BS1 4QD |
1
The Severnside Initiative for Psychotherapy
Report of the trustees
For the year ended 31 August 2022
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 2022.
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 a consultation and referral service for members of the community who are interested in accessing therapy. SIP also raises funds to support the provision of low-cost therapy to people unable to afford the full cost of the treatment they require.
SIP offers a range of training opportunities aimed at increasing the availability of qualified and ethical practitioners in the Southwest of England, and in Wales. SIP’s professional training is accredited by the British Psychoanalytic Council (BPC) meaning that qualification in psychoanalytic psychotherapy or psychodynamic psychotherapy leads to registration with the BPC. SIP provides a safeguarding framework for its practitioners and 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, ethical guidance, 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 since February 2018. SIP manages the building, utilising it for its’ training and CPD events as well as offering consulting room, meeting and event space to counsellors, therapists, and other therapy-related organisations.
During the 12 months up to the 31 August 2022, SIP’s Building Purchase Group successfully negotiated the purchase of 11 Orchard Street. An interest-free loan allowed us to exchange on 4 July 2022, with completion taking place on 31 January 2023. Following the purchase of the building, SIP aims to raise further funds to carry out adaptations to make the building fully accessible, in turn providing a space for mental health professionals to offer in person sessions to members of the community with mobility challenges.
2
The Severnside Initiative for Psychotherapy
Report of the trustees
For the year ended 31 August 2022
In early 2021 a Strategy Review Meeting was held and, as a result of this meeting in conjunction with consultation with SIP’s members and associates, SIP’s Mission statement, Values and Aims, was published on SIP’s website in December 2022. This meeting also led to the establishment of a Business Planning Working Group which is due to present its findings and proposed next steps at the AGM in February 2023.
MANAGEMENT OF THE ORGANISATION
At 31 August 2022 SIP had a total of 66 members (including 4 pre-retirement members), with an additional 1 non-practising associate, 8 clinical associates, 15 student associates, 4 honorary associates and 5 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.
SIP’s Honorary Officers were the Chair of the Executive Committee, the Head of Training, and the Chair of Membership. A significant proportion of the membership are also involved in the work of committees, giving their time voluntarily to ensure the sound running and further development of the organisation.
During the 2021-22 financial year, Olivia Baxter continued in her role as SIP’s Membership & Marketing Coordinator, and Rebecca Johnson as SIP’s Finance Manager, until her resignation in May 2022 with Nicola Coates appointed as SIP’s Finance Manager in June 2022. Vincent Finney resigned in October 2021 as SIP’s Training Coordinator, and Janet Wilkinson was appointed as SIP’s Training Administrator in February 2022. During this time Olivia Baxter, with temporary administrative support, did a magnificent job of covering those roles which had become vacant.
The trustees are grateful to the honorary officers, committee members and staff who are essential to the running of 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.
PERFORMANCE
The trustees have, of course, had to continue to give some thought to the impact of the COVID-19 pandemic on the charity’s current and future financial position. During this financial year an insurance claim was finally settled, and we continued to update COVID guidance in December 2021 and March 2022 in line with UK Government legislation and guidance. Building occupancy (and therefore building income) had largely recovered to pre-pandemic levels by October 2021. The work of the organisation continued steadily, throughout the 12 months up to 31 August 2022, in all areas. The trustees are confident that standards of service and training have been maintained, and that SIP continues to be a viable and effective charitable organisation, well able to fulfil our 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 2022 in the following paragraphs.
3
The Severnside Initiative for Psychotherapy
Report of the trustees
For the year ended 31 August 2022
Training
The trustees are extremely grateful to those who have worked so hard running courses. We were without a Head of Training for 12 months up to February 2022, though various members of SIP’s Training Committee stood in to continue allowing for an efficient running of the trainings. At the beginning of December 2021 Clare Harris very generously volunteered to step into this role temporarily and was co-opted as Head of Training, and then elected to post at the AGM held in February 2022.
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 Head of Education. The organisation is aware that running two trainings can result in a duplication of effort and resources. Accordingly, much work has continued to combine as much as possible of the teaching of the two courses whilst maintaining the relevant distinct differences. Also, the job description of the Training Administrator was altered to ensure greater efficiency and Janet Wilkinson, alongside Clare Harris, has done a difficult, but extremely useful job of rationalising the administration of the trainings.
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. Over the 12 months up to 31 August 2022, SIP hosted a number of successful CPD events, including the 31st Annual Public lecture with guest speaker Anne Alvarez, a Connecting Conversation with Sally Weintrobe and another with Mike Brearly, an online workshop presented by Donald Campbell, a Study morning with guest speaker Dr Guido Giovanardi, and a clinical seminar.
Consultation and Referral Service
Clinical services offered by members were further rationalised this year through the continued development of the Consultation and Referral Service. This is undertaken by Area Representatives covering all localities from which SIP draws members. Referrals are managed by a member of SIP’s office staff. 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. Trainees offer low-cost sessions. SIP also continued to support Orchard Therapy, a pilot scheme launched in 2021, which saw a number of fully qualified SIP therapists offer free, remote therapy sessions to individuals, referred by a small pool of GPs, unable to afford therapy (even at a low-cost).
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 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.
4
The Severnside Initiative for Psychotherapy
Report of the trustees
For the year ended 31 August 2022
During the 12 months up to 31 August 2022, thought was given to how we may increase, our free and low-cost therapy provisions following the completion of the purchase of 11 Orchard Street, and research is ongoing as to how to achieve this in the most efficient way.
SIP continued to offer 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:
-
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; and
-
Ensuring that 11 Orchard Street remains compliant with Government and BPC recommendations on ventilation, sterilisation, social distancing and other health-related measures.
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. During this year whilst the consequences of the pandemic lessened SIP was managing many potential and actual changes. Various staff resigned and new staff were employed. Job descriptions were adapted to the changing circumstances and adapted to a growing awareness for making the organisation more effective and efficient. We were in the process of negotiating the purchase of 11 Orchard Street and allowing ourselves to begin to think about the possible future and possibilities of owning the building. Alongside this, our financial position has improved and the risks we feared from the pandemic – both financial, social, and psychological have decreased, meaning that a lot of items on the risk register have been downgraded. �
At the time of writing, we are aware that we are all living in changing times, both politically and socially.
The 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 professions.
Within SIP the finances are looking healthy, the governance is much improved, and therefore we consider that the charity will continue as a going concern for at least 12 months from the date on which these financial statements are approved.
This confidence is underscored by the fact that:
-
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 professions;
-
▪ The charity holds general fund reserves of £115,992; and
-
The charity has made huge headway in its governance and is looking to increase its charity aspect and, through grants, improve the access for disabled persons.
5
The Severnside Initiative for Psychotherapy
Report of the trustees
For the year ended 31 August 2022
The trustees therefore consider it appropriate to adopt the going concern basis for the preparation of the accounts.
Fees and budgets
Fees were reviewed for all elements of the training and a small increase, equating to approximately 2%, was applied to SIP’s Pre- Clinical courses and Clinical training fees.
SIP’s membership fees for full and pre-retirement members for the 2021-22 financial year were adjusted to include PEP-web subscription fees which, when compared to membership fees for the 2020-21 financial year, equated to a decrease in fees to acknowledge the mounting financial pressures of rising living costs. Membership fees for all other membership types remained unchanged for the 2021-22 financial year for the same reasons.
FINANCIAL REVIEW
A detailed summary of accounts for the year ended 31 August 2022, 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 £115,992.
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 12 members (including student associates), and their patients, with payments totalling £7,210.
At the year end, the Subsidised Treatment and Training Fund has a total value (primarily cash and investments) of £29,492.
At the year end, the Welsh Fund stood at £25,000.
Subsidised Treatment and Training Funds (designated)
This is a new fund and is the repository for internal transfers of SIP funds, and contains £10,000.
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 £32,640.
6
The Severnside Initiative for Psychotherapy
Report of the trustees
For the year ended 31 August 2022
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 £21,425.
Land and Building Funds (designated)
The amount held in Land and Buildings (to cover the deposit on 11 Orchard Street and associated capital costs such as legal fees and survey costs) at the year end was £78,790.
Total value of restricted and unrestricted funds
The total value of restricted and unrestricted funds at the year end was £288,339.
Reserves
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 2022 (£115,992) were at 74% 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 2021 until the date on which the accounts were signed are as follows:
Mark Budden David Bunker Eva Gell Chair Lorraine Melrose Hazel Millar Appointed 12 February 2022 Jonathan Olds Appointed 4 January 2022 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.
7
The Severnside Initiative for Psychotherapy
Report of the trustees
For the year ended 31 August 2022
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).
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:
-
select suitable accounting policies and then apply them consistently;
-
▪ observe the methods and principles in the Charities SORP;
-
make judgements and accounting estimates that are reasonable and prudent;
-
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
-
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 25 February 2023 and signed on their behalf by
Eva Gell - Chair
8
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 2022, 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:
-
(1) accounting records were not kept in respect of the charitable 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.
Date: 27 February 2023 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
9
The Severnside Initiative for Psychotherapy
Statement of financial activities (incorporating an income and expenditure account)
For the year ended 31 August 2022
| Restricted Unrestricted Note £ £ Income from: Donations and legacies 3 11,991 22,123 Charitable activities: Training - 83,927 Membership - 33,273 Orchard Street management fund - 69,804 CPD and events 610 3,388 Consultation and referral service - 1,603 Investments - 842 Other income - 159 Total income 12,601 215,119 Expenditure on: Raising funds 375 221 Charitable activities: Training - 68,534 Membership - 22,086 Orchard Street management fund - 50,962 CPD and events - 6,241 Consultation and referral service - 9,753 Subsidised treatment and training fund 11,256 2,963 Total expenditure 5 11,631 160,760 Net gains / (losses) on investments (1,335) - Net income / (expenditure) 6 (365) 54,359 Transfers between funds 1,335 (1,335) Net movement in funds 970 53,024 Reconciliation of funds: Total funds brought forward 61,162 173,183 Total funds carried forward 62,132 226,207 |
2022 2021 Total Total £ £ 34,114 45,080 83,927 92,468 33,273 29,401 69,804 42,077 3,998 2,461 1,603 3,134 842 968 159 10,000 227,720 225,589 596 307 68,534 82,252 22,086 21,092 50,962 39,448 6,241 5,014 9,753 7,972 14,219 12,881 172,391 168,966 (1,335) 127 53,994 56,750 - - 53,994 56,750 234,345 177,595 288,339 234,345 |
|---|---|
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.
10
The Severnside Initiative for Psychotherapy
Balance sheet
As at 31 August 2022
| 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 |
£ 63,427 257,319 320,746 (120,031) |
2022 £ 80,705 6,919 87,624 200,715 288,339 62,132 110,215 115,992 288,339 |
2021 £ 2,690 8,254 |
|---|---|---|---|
| 10,944 66,552 267,838 |
|||
| 334,390 (110,989) |
|||
| 223,401 | |||
| 234,345 | |||
| 61,162 79,458 93,725 |
|||
| 234,345 |
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:
-
(i) ensuring that the Company keeps proper accounting records which comply with section 386 of the Act; and
-
(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 25 February 2023 and signed on their behalf by
Eva Gell - Chair
11
The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2022
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. The charity holds unrestricted, general reserves of £115,992 and a cash balance of £257,319. 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.
12
The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2022
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:
| 2022 | 2021 | |
|---|---|---|
| Raising funds | 0% | 0% |
| Charitable activities: | ||
| Training | 34% | 50% |
| Membership | 24% | 18% |
| Orchard Street management fund | 13% | 10% |
| CPD and events | 7% | 5% |
| Consultation and referral service | 13% | 10% |
| Subsidised treatment and training fund | 9% | 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 are capitalised where the purchase price exceeds £500.
13
The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2022
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.
14
The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2022
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 £ £ 18,535 26,545 - 92,468 - 29,401 - 42,077 - 2,461 - 3,134 - 968 - 10,000 18,535 207,054 - 307 - 82,252 - 21,092 - 39,448 - 5,014 - 7,972 11,891 990 11,891 157,075 127 - 6,771 49,979 Unrestricted |
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 |
15
The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2022
3. Income from donations and legacies
| Donations Gifts in kind Total income from donations and legacies Prior period comparative: Donations Grants Gifts in kind Total income from donations and legacies |
Restricted £ £ 11,991 3,623 - 18,500 11,991 22,123 Restricted £ £ 18,535 1,241 - 6,804 - 18,500 18,535 26,545 Unrestricted Unrestricted |
2022 Total £ 15,614 18,500 |
|---|---|---|
| 34,114 | ||
| 2021 Total £ 19,776 6,804 18,500 |
||
| 45,080 |
*Gifts in kind represents the rent subsidy provided by the charity's landlord, The Lark Trust.
4. Government grants
The charitable company receives government grants, defined as emergency COVID-19 funding from Bristol City Council. The total value for such grants in the period ending 31 August 2022 was £nil (2021: £6,800).
16
The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2022
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 Library costs Office expenses Legal and professional Bank charges Depreciation Sub-total Allocation of support and governance costs Total expenditure |
Raising funds £ 596 - - - - - - - - - - - - |
Membership £ £ - - 14,754 10,358 22,307 - 1,877 - - - 4,312 3,977 10,019 - 394 - 254 - 3,586 - - - - 6 - - 57,503 14,341 11,031 7,745 68,534 22,086 Training |
Membership £ £ - - 14,754 10,358 22,307 - 1,877 - - - 4,312 3,977 10,019 - 394 - 254 - 3,586 - - - - 6 - - 57,503 14,341 11,031 7,745 68,534 22,086 Training |
£ - 5,569 265 15 - - 40,913 - - 28 - 8 - Orchard Street management fund |
CPD and events £ - 2,841 863 63 - - - - - 349 - - - |
£ - 5,569 20 - - - - - - - - - - Consultation and referral service |
£ - 4,010 - - - - - 7,210 - - - - - Subsidised treatment and training fund |
Support and governance costs £ - 4,414 1,322 39 60 1,103 10,977 1 578 7,311 4,132 661 1,630 |
2022 Total £ 596 47,515 24,777 1,994 60 9,392 61,909 7,605 832 11,274 4,132 675 1,630 |
|---|---|---|---|---|---|---|---|---|---|
| 596 - |
57,503 11,031 |
14,341 7,745 |
46,798 4,164 |
4,116 2,125 |
5,589 4,164 |
11,220 2,999 |
32,228 (32,228) |
172,391 - |
|
| 596 | 68,534 | 22,086 | 50,962 | 6,241 | 9,753 | 14,219 | - | 172,391 |
Total governance costs were £2,621 (2021: £2,855).
17
The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2022
5. Total expenditure
| Total expenditure | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Prior year comparative Fundraising costs Staff costs (note 7) Seminar leader and freelance fees Travel and subsistence Membership fees and subscriptions Premises costs Treatment and training subsidies 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 |
£ - 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 |
2020 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 |
18
The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2022
6. Net movement in funds
This is stated after charging:
| Depreciation Operating lease payments Trustees' remuneration Trustees' reimbursed expenses Independent examiner's remuneration ▪Independent examination (including VAT) ▪Other services (including VAT) |
2022 £ 1,630 18,615 Nil Nil 2,100 319 |
2021 £ 1,345 18,615 Nil Nil 1,980 227 |
|---|---|---|
7. Staff costs and numbers
Staff costs were as follows:
| Salaries and wages Social security costs Pension costs |
2022 £ 45,773 - 1,742 47,515 |
2021 £ 55,768 87 1,389 |
|---|---|---|
| 57,244 |
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 (2021: £Nil).
Staff numbers were as follows:
| Average head count Full time equivalents |
2022 No. 2.7 2.0 |
2021 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.
19
The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2022
| 9. Tangible fixed assets Cost At 1 September 2021 Additions in year At 31 August 2022 Depreciation At 1 September 2021 Charge for the year At 31 August 2022 Net book value At 31 August 2022 At 31 August 2021 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 Trainee loans |
£ 4,035 855 4,890 1,345 1,630 2,975 1,915 2,690 Computer equipment |
£ - 78,790 78,790 - - - 78,790 - 2022 £ 8,254 (1,335) 6,919 8,071 2022 £ 52,284 6,553 3,590 1,000 63,427 Land and buildings |
£ 4,035 79,645 Total |
|---|---|---|---|
| 83,680 | |||
| 1,345 1,630 |
|||
| 2,975 | |||
| 80,705 | |||
| 2,690 | |||
| 2021 £ 8,127 127 |
|||
| 8,254 | |||
| 8,071 | |||
| 2021 £ 47,878 7,435 11,239 - |
|||
| 66,552 |
20
The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2022
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 2021 Deferred during the year Released during the year At 31 August 2022 |
2022 £ 10,012 2,100 1,131 105,996 792 120,031 2022 £ 98,868 105,996 (98,868) 105,996 |
2021 £ 3,620 6,650 843 98,868 1,008 |
| 110,989 | ||
| 2021 £ 98,761 98,868 (98,761) |
||
| 98,868 |
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 2022 Prior period comparative Tangible fixed assets Investments Current assets Current liabilities Net assets at 31 August 2021 |
£ - 6,919 55,213 - 62,132 £ - 8,254 52,908 - 61,162 Restricted funds Restricted funds |
£ - - 110,215 - 110,215 £ - - 79,458 - 79,458 Designated funds Designated funds |
£ 80,705 - 155,318 (120,031) 115,992 £ 2,690 - 202,024 (110,989) 93,725 General funds General funds |
Total funds £ 80,705 6,919 320,746 (120,031) |
|---|---|---|---|---|
| 288,339 | ||||
| Total funds £ 2,690 8,254 334,390 (110,989) |
||||
| 234,345 |
21
The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2022
15. Movements in funds
| Restricted funds STTF Building purchase fund Total restricted funds Designated funds: Building purchase fund Land and buildings STTF Total designated funds General funds Total unrestricted funds Total funds Unrestricted funds |
£ 37,159 24,003 61,162 79,458 - - 79,458 93,725 173,183 234,345 At 1 September 2021 |
Income £ 3,553 9,048 12,601 1,517 - - 1,517 213,602 215,119 227,720 |
£ £ (11,220) (1,335) (411) - (11,631) (1,335) (760) - - - - (760) - (160,000) - (160,760) - (172,391) (1,335) Expenditure Loss on investments |
£ £ (11,220) (1,335) (411) - (11,631) (1,335) (760) - - - - (760) - (160,000) - (160,760) - (172,391) (1,335) Expenditure Loss on investments |
£ 1,335 - 1,335 (58,790) 78,790 10,000 30,000 (31,335) (1,335) - Transfers between funds |
£ 29,492 32,640 At 31 August 2022 |
|---|---|---|---|---|---|---|
| (1,335) | 62,132 | |||||
| - - |
21,425 78,790 10,000 |
|||||
| - | 110,215 | |||||
| - | 115,992 | |||||
| - | 226,207 | |||||
| (1,335) | 288,339 |
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 The Welsh Fund was added in 2020 .
Building purchase fund
This fund is for monies raised for the purchase of 11 Orchard Street. It will now continue as a source of funds for adaptations and major repairs to the building.
Purposes of designated funds
Building purchase fund
This fund is for monies set aside from general funds surplus, for the future purchase of a building for the charity.
Land and buildings
This fund represents the net book value of land and buildings currently held in fixed assets.
STTF
For monies set aside from a surplus of general funds to support the provision of low-cost therapy by members and trainees.
22
The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2022
15. Movements in funds (continued)
Purposes of transfers
Transfers to restricted funds represent the loss in investment value being absorbed by general funds rather than the STTF restricted fund.
Transfers from the designated building purchase fund to land and buildings represent expenditure on the building deposit and other incidental purchase costs, less the annual £20,000 transfer from general funds.
Transfers to the STTF designated fund represent excess monies put towards supporting low-cost therapy.
| 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 2020 £ 45,215 9,176 54,391 59,458 59,458 63,746 123,204 177,595 |
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 Expenditure Gain on investments |
£ £ (11,891) 127 - - (11,891) 127 - - - - (157,075) - (157,075) - (168,966) 127 Expenditure Gain on investments |
£ - - - 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 |
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 |
2022 £ 7,708 - 7,708 |
2021 £ 18,615 7,708 |
|---|---|---|
| 26,323 |
23
The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2022
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 £669 and £530 respectively (2021: £1,564 and £1,648) for teaching fees. Neither trustee received payments in their capacity as trustees. No amounts were owing at 31 August 2022 (2021: £Nil).
18. Capital commitments
At 31 August 2022, The Severnside Initiative for Psychotherapy had committed to the purchase of land and buildings at 11 Orchard Street, Bristol. Non-refundable costs have been recognised in the year to 31 August 2022, with a balance of £78,790 being held in fixed assets, including a deposit of £60,000. The total purchase price (excluding legal and survey costs) is £600,000, £450,000 of which is funded via an interest-free loan.
Contracts were exchanged on 4 July 2022, with completion taking place on 31 January 2023.
24