Company no. 03799698 Charity no. 1079390
The Severnside Initiative for Psychotherapy Report and Unaudited Financial Statements
31 August 2024
The Severnside Initiative for Psychotherapy
Reference and administrative details
For the year ended 31 August 2024 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: Eva Gell Chair Lorraine Melrose Hazel Millar Jonathan Olds Stephen Poland (appointed 20 October 2023) Deborah Spaull (resigned 30 August 2024) Company secretary Nicola Coates 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 2024
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 2024.
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. Our Mission Statement is: to improve the mental health of individuals and the community by promoting psychoanalytic thinking and the practice of psychoanalytic and psychodynamic psychotherapy, and by providing high quality education, and professional training.
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. Having purchased 11 Orchard Street on 31 January 2023, SIP now manages the building and is responsible for its maintenance. The building is used for SIP’s training courses and for CPD events; also providing consulting room, meeting and event space to counsellors, therapists, and other therapy-related organisations. SIP is clear that its first aim on becoming the building’s owner is to raise further funds to carry out adaptations to make the building fully accessible, providing a space for mental health professionals to offer in-person sessions to members of the community with mobility challenges. At our AGM in March 2024, it was agreed to work towards incorporating a low-cost clinic within SIP with recommendations from a working party chaired by Ally Kessler.
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The Severnside Initiative for Psychotherapy
Report of the trustees
For the year ended 31 August 2024
MANAGEMENT OF THE ORGANISATION
At 31 August 2024 SIP had a total of 61 full members and 7 pre-retirement members, with an additional 1 non-practising associate, 9 clinical associates, 13 student associates, 5 honorary associates and 4 co-opted associates.
The business of SIP as a charitable company is managed by the Executive Committee, the Board of Trustees and the Ethics Committee. Nicky Coates continues as Finance Manager and Company Secretary. Mike Keating continues as Head of Training and Education (HoT&E); Georgina Holt is Training Administrator. Sadly Olivia Baxter, Office and Operations Manager (OOM), went on sick leave in September 2023 and left in December 2023. Her replacement, Johanna Nicholls, started in March 2024. Clare Harris continued to perform a freelance role as Building Overseer until the handover to the new OOM when her tasks had been incorporated into the OOM job description. During the period whilst Olivia was on sick leave various members took on many of her roles working many extra hours. The Trustees would like, therefore, to thank Julia Warburton (Chair of Membership) Stella Maile (Chair of EC) Nicky Coates (Finance Manager) and Clare Harris (Building Overseer) for all the extra work that they contributed to keep SIP on an even keel.
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. 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. This last year, though, there has been some thought given, as to whether we could support, in some other way, voluntary work to encourage others to join in.
We had two new Trustees join us in October 2023- Deb Spaull and Steve Poland. Deb is a retired Clinical Psychologist and Steve was a financial advisor. Sadly, due to unforeseen family commitments, Deb stood down in August 2024.
PERFORMANCE
During this year the work of the organisation has continued steadily whilst adapting to the changes brought about by the purchase of Orchard Street and the establishment of more employed staff and its consequences on management procedures. Various changes were also made to the Rules and Bylaws in accordance. By the end of the year the Trustees and the EC were beginning to explore various governance changes in the light of finding the organisation top heavy and hoping to increase lines of communication. 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 2024 in the following paragraphs.
Training
The trustees are extremely grateful to those who have worked so hard running courses and being members of the various training committees. The various training committees have had members leave for personal reasons, but nevertheless the work has carried on and we are very grateful for those who have taken up the slack.
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The Severnside Initiative for Psychotherapy
Report of the trustees
For the year ended 31 August 2024
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. A curriculum group, led by Kathy Laurie, has also updated the recommended reading lists taking into account ethnicity, racism, gender and diversity issues. This curriculum group also organised the training so there will no longer be a need for a ‘fallow year’ with no new clinical intake every third year. The pre-clinical courses were renamed Foundations of Psychoanalytic Theory and Practice in order to target a wider and more diverse community.
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 to 31st August 2024, SIP hosted a number of CPD events. Some were successful — the 32nd Annual Public lecture with guest speaker Graham Music and the Connecting Conversation with Rehan Zahid, were well attended — but others had to be cancelled due to poor ticket sales. The CPD committee and the Head of Training and Education are in discussion as to the reasons for this, and the best way forward.
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 important for trainees, who can build up their clinical experience by providing lowcost sessions, and also makes a contribution to public well-being at a time when affordable psychotherapy services are hugely in demand. SIP also continued to support Orchard Therapy, a pilot scheme launched in 2021, which saw a number of fully qualified SIP therapists offer free 10 remote therapy sessions to individuals unable to afford therapy (even at a low cost), who were referred by a small group of GPs.
Subsidised treatment and training (STTF)
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.
During the 12 months to 31 August 2024, thought was given to how we might increase our free and low-cost therapy provisions using a proportion of the surplus generated by the Orchard Street Therapy Rooms (OSTR): £16,845 was, therefore, moved to the Designated Subsidised Treatment and Training Fund: the first £10,000 being earmarked as funding for the low-cost clinic, the balance going towards the two subsidised treatment funds outlined above.
SIP continued to offer bursaries to help with the cost of fees for the Foundations courses, named 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.
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The Severnside Initiative for Psychotherapy
Report of the trustees
For the year ended 31 August 2024
Risk management
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.
We now have a safeguarding policy, and a person responsible for this and this, which sits alongside that produced by the BPC which relates to the safeguarding of individuals. As part of risk management we changed the job description of the OOM to include overseeing the safety and maintenance of the building.
It has not been an easy year for SIP – as described in the Finance Manager’s report. There has been the fallow training year and its consequences; a need to take on temporary staff to cover sick leave and appointment of a new OOM; and finally the need to shore up our very unstable SIP and Orchard Street websites. We did receive a legacy of £4,785 which has been placed in a newly designated Engagement Fund to help fund an improved website to strengthen SIP’s communication with the outside world.
OSTR has performed well and the income from the training is anticipated to improve. Thus 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:
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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;
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The charity holds general fund reserves of £90,301; and
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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.
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 an increase, equating to approximately 2%, was applied to fees for SIP’s Clinical courses. Fundamentals fees increased by 8.5% and Introductory fees increased by around 6.75%.
SIP’s membership fees increased at approximately 5%, lower than the rate of inflation, which was intended to go some way towards meeting the organisation’s rising costs, while acknowledging that costs were also increasing rapidly for our members.
Staff Salaries
It was acknowledged early in the year that the rates of pay for staff had remained static since 2016, apart from a 1% rise in 2019. It was therefore decided in February 2024 to increase staff salaries, and to review them annually dependent on SIP’s financial situation.
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The Severnside Initiative for Psychotherapy
Report of the trustees
For the year ended 31 August 2024
The Finance Manager (who started in June 2022) was given a pay increase of 4% backdated to September 2023, then a further increase of 3% from April 2024. The Head of Education and Training (who started in February 2023) and the Training Assistant (who started in August 2023) were given an increase of 3% from April 2024. The Office and Operations Manager (who started in March 2024) would be given a 3% increase at the end of a six-month probation, and the person taking on the new role of Administration Assistant, at the end of a six-month probation period, would be paid at the same rate as the Training Administrator.
FINANCIAL REVIEW
A detailed summary of accounts for the year ended 31st August 2024, 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 £90,301.
Subsidised Treatment and Training Fund (restricted)
The Subsidised Treatment and Training Fund (STTF) is comprised of two amalgamated funds: the Training Patient and Bursary Fund (TPBF) and the Reduced Fee Scheme (RFS), to which the Welsh Bursary Fund was added in 2020. Funds for the Low-Cost Clinic are now also held within the STTF.
The STTF fund supported the low-cost work of 9 members (including student associates), and their patients, with payments totalling £4,285.
At the year end, the Subsidised Treatment and Training Fund (restricted) had a total value of £26,696, £24,997 of which is earmarked for the Welsh Bursary Fund, and £830 of which is earmarked for the Low-Cost Clinic.
Subsidised Treatment and Training Fund (designated)
This is the repository for internal transfers of SIP funds and contained £30,543 after the transfer from the OSTR surplus, of which £10,000 is earmarked for the Low-Cost Clinic.
Building Improvement Fund (restricted)
This fund is for monies raised for future improvements of 11 Orchard Street since its purchase. Its value at the year end was £2,810.
Building Improvement Fund (designated)
This fund is for monies set aside from general funds surplus, for planned improvements of 11 Orchard Street, which include making the building more accessible. The designation of these funds is reversible, should SIP require the funds for other expenditure deemed more important by the trustees. Its value at the year end was £22,971.
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The Severnside Initiative for Psychotherapy
Report of the trustees
For the year ended 31 August 2024
Land and Building Funds (designated)
The amount held in Land and Buildings (to cover the capital costs of the purchase of 11 Orchard Street) at the year end was £181,930.
Total value of restricted and unrestricted funds
The total value of restricted and unrestricted funds at the year end was £365,251.
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 31st August 2024 (£90,301) were at 51% 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 1st September 2023 until the date on which the accounts were signed, are listed at the beginning of this report.
This report has been prepared in accordance with the provisions of the Companies Act 2006 applicable to companies subject to the small companies’ regime.
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The Severnside Initiative for Psychotherapy
Report of the trustees
For the year ended 31 August 2024
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:
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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; ▪ 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 22 February 2025 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 2024, which are set out on pages 10 to 25.
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: 23 February 2025 Robert 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 2024
| Restricted Unrestricted Note £ £ Income from: Donations and legacies 3 5,736 4,786 Charitable activities: Training - 79,886 Membership - 29,907 Orchard Street management fund - 90,712 CPD and events - 2,527 Consultation and referral service - 1,473 Investments 1,890 - Total income 7,626 209,291 Expenditure on: Raising funds - 41 Charitable activities: Training - 98,224 Membership - 26,561 Orchard Street management fund 1,068 48,666 CPD and events - 11,382 Consultation and referral service - 10,838 Subsidised treatment and training fund 4,285 - Total expenditure 4 5,353 195,712 Net gains / (losses) on investments - - Net income and net movement in funds 5 2,273 13,579 Reconciliation of funds: Total funds brought forward 27,233 322,166 Total funds carried forward 29,506 335,745 |
2024 Total £ 10,522 79,886 29,907 90,712 2,527 1,473 1,890 216,917 41 98,224 26,561 49,734 11,382 10,838 4,285 201,065 - 15,852 349,399 365,251 |
2023 Total £ 39,689 86,111 21,556 83,795 4,352 2,005 1,299 |
|---|---|---|
| 238,807 | ||
| 505 77,383 18,683 50,403 10,355 7,916 11,981 |
||
| 177,226 | ||
| (521) | ||
| 61,060 288,339 |
||
| 349,399 |
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 2024
| Note Fixed assets Tangible assets 8 Investments 9 Current assets Debtors 10 Cash at bank and in hand Liabilities Creditors: amounts falling due within 1 year 11 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than 1 year 13 Net assets 14 Funds 15 Restricted funds Unrestricted funds Designated funds General funds Total charity funds |
£ 91,923 205,939 297,862 (138,891) |
2024 £ 598,155 - 598,155 158,971 757,126 (391,875) 365,251 29,506 245,444 90,301 365,251 |
2023 £ 610,794 - |
|---|---|---|---|
| 610,794 64,597 232,886 |
|||
| 297,483 (144,503) |
|||
| 152,980 | |||
| 763,774 (414,375) |
|||
| 349,399 | |||
| 27,233 208,415 113,751 |
|||
| 349,399 |
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, 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.
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The Severnside Initiative for Psychotherapy
Balance sheet
As at 31 August 2024
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 22 February 2025 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 2024
1. Accounting policies
a) General information and basis of preparation
The Severnside Initiative for Psychotherapy is a charitable company limited by guarantee registered in England and Wales. The registered office address is 11 Orchard Street, Bristol, BS1 5EH.
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 charity is able to continue as a going concern, which the trustees consider appropriate having regard to the current level of unrestricted reserves. There are no material uncertainties about the charity's ability to continue as a going concern.
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 2024
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:
| 2024 | 2023 | |
|---|---|---|
| Raising funds | 0% | 0% |
| Charitable activities: | ||
| Training | 50% | 53% |
| Membership | 16% | 14% |
| Orchard Street management fund | 17% | 14% |
| CPD and events | 7% | 6% |
| Consultation and referral service | 10% | 8% |
| Subsidised treatment and training fund | 0% | 5% |
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 |
|---|---|
| Land and buildings | 50 years |
Items 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 2024
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 2024
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 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 losses on investments Net income / (expenditure) Transfers between funds Net movement in funds |
Restricted £ £ 31,985 7,704 - 86,111 - 21,556 - 83,795 - 4,352 - 2,005 733 566 32,718 206,089 - 505 - 77,383 - 18,683 - 50,403 - 10,355 - 7,916 7,641 4,340 7,641 169,585 (521) - 24,556 36,504 (59,455) 59,455 (34,899) 95,959 Unrestricted |
2023 Total £ 39,689 86,111 21,556 83,795 4,352 2,005 1,299 |
|---|---|---|
| 238,807 | ||
| 505 77,383 18,683 50,403 10,355 7,916 11,981 |
||
| 177,226 | ||
| (521) | ||
| 61,060 - |
||
| 61,060 |
16
The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2024
3. Income from donations and legacies
| Income from donations and legacies | ||
|---|---|---|
| Donations Legacies Total income from donations and legacies Prior period comparative Donations Gifts in kind Grants Total income from donations and legacies* |
Restricted £ £ 5,736 500 - 4,286 5,736 4,786 Restricted £ £ 5,985 10 - 7,694 26,000 - 31,985 7,704 Unrestricted Unrestricted |
2024 Total £ 6,236 4,286 |
| 10,522 | ||
| 2023 Total £ 5,995 7,694 26,000 |
||
| 39,689 |
*Gifts in kind represents the rent subsidy provided by the charity's landlord, The Lark Trust.
17
The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2024
4. Total expenditure
| Fundraising costs Staff costs (note 6) 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 £ 41 - - - - - - - - - - - - - |
Membership £ £ - - 42,831 7,071 19,365 - 3,470 7 - - 1,560 9,923 14 - 419 - - - - 97 1,982 - - - 24 - - - 69,665 17,098 28,559 9,463 98,224 26,561 Training |
Membership £ £ - - 42,831 7,071 19,365 - 3,470 7 - - 1,560 9,923 14 - 419 - - - - 97 1,982 - - - 24 - - - 69,665 17,098 28,559 9,463 98,224 26,561 Training |
£ - 9,222 5,307 14 - - 23,227 - - - 1,988 132 - - Orchard Street management fund |
CPD and events £ - 3,535 559 - 3,143 - 3 - - - 2 - - - |
£ - 3,478 1,697 - - - - - - - - - - - Consultation and referral service |
£ - - - - 41 - - 4,241 3 - - - - - Subsidised treatment and training fund |
Support and governance costs £ - 9,862 4,382 194 269 2,063 5,648 - - 1,430 13,527 6,120 175 13,999 |
2024 Total £ 41 75,999 31,310 3,685 3,453 13,546 28,892 4,660 3 1,527 17,499 6,252 199 13,999 |
|---|---|---|---|---|---|---|---|---|---|
| 41 - |
69,665 28,559 |
17,098 9,463 |
39,890 9,844 |
7,242 4,140 |
5,175 5,663 |
4,285 - |
57,669 (57,669) |
201,065 - |
|
| 41 | 98,224 | 26,561 | 49,734 | 11,382 | 10,838 | 4,285 | - | 201,065 |
Total governance costs were £5,346 (2023: £5,739).
18
The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2024
4. Total expenditure (continued)
| Prior period comparative Fundraising costs Staff costs (note 6) 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 £ 505 - - - - - - - - - - - - |
Membership £ £ - - 31,629 8,366 20,103 159 1,620 - 71 184 1,638 5,120 3,317 - 216 - - - 453 158 583 - - - - - 59,630 13,987 17,753 4,696 77,383 18,683 Training |
Membership £ £ - - 31,629 8,366 20,103 159 1,620 - 71 184 1,638 5,120 3,317 - 216 - - - 453 158 583 - - - - - 59,630 13,987 17,753 4,696 77,383 18,683 Training |
£ - 8,500 880 42 - - 29,016 - - 9 - - 7,184 Orchard Street management fund |
CPD and events £ - 3,595 - 544 4,121 - - - - 77 - - - |
£ - 4,984 135 - - - - - - - - - - Consultation and referral service |
£ - 2,780 - - - - - 7,641 - - - - - Subsidised treatment and training fund |
Support and governance costs £ - 8,442 - 21 - 2,926 8,213 - 1,741 5,687 3,786 206 2,574 |
2023 Total £ 505 68,296 21,277 2,227 4,376 9,684 40,546 7,857 1,741 6,384 4,369 206 9,758 |
|---|---|---|---|---|---|---|---|---|---|
| 505 - |
59,630 17,753 |
13,987 4,696 |
45,631 4,772 |
8,337 2,018 |
5,119 2,797 |
10,421 1,560 |
33,596 (33,596) |
177,226 - |
|
| 505 | 77,383 | 18,683 | 50,403 | 10,355 | 7,916 | 11,981 | - | 177,226 |
19
The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2024
5. Net movement in funds
This is stated after charging:
| Depreciation Operating lease payments Trustees' remuneration Trustees' reimbursed expenses Independent examiner's remuneration Independent examination (excluding VAT) Other services (excluding VAT) |
2024 £ 13,999 - Nil Nil 1,975 338 |
2023 £ 9,758 7,708 605 Nil 1,900 264 |
|---|---|---|
Trustees' remuneration is disclosed in note 16.
In common with other charities of our size and nature we use our independent examiners to assist with the preparation of the financial statements.
6. Staff costs and numbers
Staff costs were as follows:
| Salaries and wages National insurance costs Pension costs |
2024 £ 72,944 137 2,918 75,999 |
2023 £ 65,711 - 2,585 |
|---|---|---|
| 68,296 |
No employee earned more than £60,000 during the current or prior period.
The key management personnel of the charitable company comprise the trustees. The total employee benefits of the key management personnel were £Nil (2023: £Nil).
Staff numbers were as follows:
| Average head count Full time equivalents |
2024 No. 4.1 2.1 |
2023 No. 3.8 |
|---|---|---|
| 2.3 |
7. Taxation
The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.
20
The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2024
| 8. Tangible fixed assets Cost At 1 September 2023 Additions in year At 31 August 2024 Depreciation At 1 September 2023 Charge for the year At 31 August 2024 Net book value At 31 August 2024 At 31 August 2023 9. Investments Market value at 1 September Unrealised gains / (losses) Disposals Market value at 31 August 10. Debtors Trade debtors Prepayments Accrued income Trainee loans |
£ 7,722 1,360 9,082 5,549 1,683 7,232 1,850 2,173 Computer equipment |
£ 615,805 - 615,805 7,184 12,316 19,500 596,305 608,621 2024 £ - - - - 2024 £ 79,024 11,512 387 1,000 91,923 Land and buildings |
£ 623,527 1,360 Total |
|---|---|---|---|
| 624,887 | |||
| 12,733 13,999 |
|||
| 26,732 | |||
| 598,155 | |||
| 610,794 | |||
| 2023 £ 6,919 (521) (6,398) |
|||
| - | |||
| 2023 £ 53,417 9,852 328 1,000 |
|||
| 64,597 |
21
The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2024
11. Creditors : amounts falling due within 1 year
| Creditors : amounts falling due within 1 year | ||
|---|---|---|
| Trade creditors Accruals Other taxation and social security Deferred income (see note 12) Other creditors Loans |
2024 £ 14,444 2,370 1,672 97,016 889 22,500 138,891 |
2023 £ 11,729 2,280 2,113 105,012 869 22,500 |
| 144,503 |
12. Deferred income
| At 1 September Deferred during the year Released during the year At 31 August |
2024 £ 105,012 97,016 (105,012) 97,016 |
2023 £ 105,996 105,012 (105,996) |
|---|---|---|
| 105,012 |
Deferred income relates to income invoiced in advance for training courses, memberships and subscriptions.
13. Creditors : amounts falling due after more than 1 year
| 2024 | 2023 | |
|---|---|---|
| £ | £ | |
| Loans | 391,875 | 414,375 |
The loan is a 20 year loan was for purchase of 11 Orchard Street, secured by a fixed charge over the property. The loan commenced in 2023 and is repayable at £22,500 per annum. No interest is charged.
22
The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2024
14. Analysis of net assets between funds
| Analysis of net assets between funds | ||||
|---|---|---|---|---|
| Tangible fixed assets Current assets Current liabilities Non-current liabilities Net assets at 31 August 2024 Prior period comparative Tangible fixed assets Current assets Current liabilities Non-current liabilities Net assets at 31 August 2023 |
£ - 29,506 - - 29,506 £ - 27,233 - - 27,233 Restricted funds Restricted funds |
£ 596,305 63,514 (22,500) (391,875) 245,444 £ 608,621 36,669 (22,500) (414,375) 208,415 Designated funds Designated funds |
£ 1,850 204,842 (116,391) - 90,301 £ 2,173 233,581 (122,003) - 113,751 General funds General funds |
Total funds £ 598,155 297,862 (138,891) (391,875) |
| 365,251 | ||||
| Total funds £ 610,794 297,483 (144,503) (414,375) |
||||
| 349,399 |
23
The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2024
15. Movements in funds
| Restricted funds Building improvement fund STTF Total restricted funds Designated funds: Building improvement fund Land and buildings STTF Engagement fund Total designated funds General funds Total unrestricted funds Total funds Unrestricted funds |
£ 1,957 25,276 27,233 22,971 171,746 13,698 - 208,415 113,751 322,166 349,399 At 1 September 2023 |
Income £ 1,921 5,705 7,626 - - - - - 209,291 209,291 216,917 |
£ (1,068) (4,285) Expenditure |
£ - - - - 22,500 16,845 10,000 49,345 (49,345) - - Transfers between funds |
£ 2,810 26,696 At 31 August 2024 |
|---|---|---|---|---|---|
| (5,353) | 29,506 | ||||
| - (12,316) - - |
22,971 181,930 30,543 10,000 |
||||
| (12,316) | 245,444 | ||||
| (183,396) | 90,301 | ||||
| (195,712) | 335,745 | ||||
| (201,065) | 365,251 |
Purposes of restricted funds
Building improvement fund
This fund is for monies raised for future improvements of 11 Orchard Street.
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.
Purposes of designated funds
Building improvement fund
This fund is for monies set aside by the trustees for future improvements of 11 Orchard Street.
Land and buildings
This fund represents the net book value of land and buildings currently held in fixed assets less the outstanding loan on the property.
STTF
For monies set aside from a surplus of general funds to support the provision of low-cost therapy by members and trainees.
24
The Severnside Initiative for Psychotherapy
Notes to the financial statements
For the year ended 31 August 2024
15. Movements in funds (continued)
Purposes of designated funds (continued)
Engagement fund
This fund is to be used to promote Severnside’s activities and the benefits of psychotherapy to a wider audience.
Purposes of transfers
Transfers to the land and buildings fund from unrestricted funds represent loan repayments made in the year.
Transfers to the STTF and engagement designated funds represent excess monies put towards supporting low-cost therapy and engagement activities.
| Prior period comparative Restricted funds Building improvement fund Building purchase fund STTF Total restricted funds Designated funds: Building improvement fund Building purchase fund Land and buildings STTF Total designated funds General funds Total unrestricted funds Total funds Unrestricted funds |
At 1 September 2022 £ - 32,640 29,492 62,132 - 21,425 78,790 10,000 110,215 115,992 226,207 288,339 |
Income £ 1,957 27,336 3,425 32,718 - 566 - - 566 205,523 206,089 238,807 |
£ £ - - - - (7,641) (521) (7,641) (521) - - - - (7,184) - - - (7,184) - (162,401) - (169,585) - (177,226) (521) Loss on investments Expenditure |
£ £ - - - - (7,641) (521) (7,641) (521) - - - - (7,184) - - - (7,184) - (162,401) - (169,585) - (177,226) (521) Loss on investments Expenditure |
£ - (59,976) 521 (59,455) 22,971 (21,991) 100,140 3,698 104,818 (45,363) 59,455 - Transfers between funds |
£ 1,957 - 25,276 At 31 August 2023 |
|---|---|---|---|---|---|---|
| (521) | 27,233 | |||||
| - - - - |
22,971 - 171,746 13,698 |
|||||
| - | 208,415 | |||||
| - | 113,751 | |||||
| - | 322,166 | |||||
| (521) | 349,399 |
16. Related party transactions
There were no related party transactions in the current year.
In the prior year, Mark Budden and Eva Gell, trustees, provided teaching services on the training courses provided by the charitable company. They received payments totalling £605 for teaching fees. Neither trustee received payments in their capacity as trustees.
25