Kgnt Famlly PJledlatlon Sarvlce
IA company Ilmlled by guarantee)
Rèf8r8ncè and administrative datalls of the Charity. its TN$tg95 and advl$er$
for the year •ndtrd 31 March 2022
Trust8aS
Mr Michael Baley
Mr Graham Jones
Mr Arden Bhattach8rya
Mr Geoffrey Burr
Ms Ann HarrSson
Company r•gl$tgred number
04186544
Charity reglstgred number
1087460
R8gistarad offle8
2 Conqueror CoLtrt
Sillingbourne
Kent
ME10 5BH
A¢¢ountants
Kreston Reeves LLP
Chartered Accountants
Montague Place
Quayside
Chatham Maritime
Chatham
Kent
ME4 4QU
Page 1
Kent Famlly Mfrdlatlon Servlc
IA company Ilmlted by guaranteè)
Trustees, rèport
for thè year &nded 31 March 2Q22
The Trustees present their annual report together with the financial statements of the Charity for the year èndèd
31 March 2022. The Annual rèport serves the purposes of both a Trustees. report and a Directors, report under
cornpany law. The Trustees eonfjrm that the Annual report and financial slatewn¢nls of the Charity comply with
the current slalutory requirernenls, the requiremenis of the Charity's goveming document and the provisions of
the Slalemenl of Recommended Practice ISORP) appIlb to charities preparing their ac¢ounls in
accordance with the Fin8ncial Reporting Standard applicable in the UK and Republlc of Ireland IFRS102)
leffeclive 1 January 2019}.
The financial statements have been prepared in a¢¢ordance with the accounting policies 8Èt out in notes to the
accounts and compty wÈth the Charity's governing document, the Charities Act 2011 and
Accounting and Reporting by Chaiilie5.' Slalement of Rpcommended Pfaclice applicable to charities
preparing their accounts In a¢¢ord8n¢e with th8 Financial Reporting Standard applicable in the UK and
Repub11¢ of Ireland published in October 2019.
Since the Charity qualifies as 8mall under section 382 gf the Companies Act 2006, the strategic report required
of medium and largè companiès under the Companies Act 2006 Islfalegic Report and Directors, Report}
Regulallons 2013 has been omitted.
Objective5 and activities
a. Policl•s and objectivos
The principal obiect of the Ch8rtty Is lo alleviats thè hardship and distress caused by the bakng up of
marrlage and family. This includes assisting separating andlor divorclng couples lo resolve disputes and reach
agreed decisions on mallers arising from family stre8s. financial matters and matters involving ChIren within
the County of Kent. The Charity 1$ also èstsblished ta 2ssisI the resolution of family disputes.
Our revenue from the Cafcass SPIPS contract has provided fLther in¢om@ to the service and earnings for
mediators.
In Setting objectives and planning for adtvittes, the Trustees have gÈven due consideration lo general guidance
published by the Charity Commission rejaling lo public benefit. in¢IlIng the guidance 'Public benefit.. running a
charity (PB2}'.
A¢hlev&ments and perfomiance
a. Main achievements of thg Charity
The service made a surplus of £23,98312021.' £13,799), during the year pnded 31 March 2022, including gains
on investments of £43512021.. £1,868).
Given the tight margins on which the Charity operates, cash flow has athys been a major preoccupation but
the Charity has maintained a suffl¢ienl Balan¢è Sheet, Legal Aid payments are received promptly and prThiale
lients are tequired to proed on a 'pay In advan¢8' basi8 to MlMiS8 uncollectible debts.
Page 2
Kènt Famlly Medlatlon Ser41ce
(A company Ilmlted by guarantee)
Trustè9s' rèport Icontlnued)
for tho year ended 31 March 2022
AchlovemÈnts and pÈrformancè Icontinu8d)
b. Revlew of activities
March 2020 saw tho impact of Covid-19 On the country which affe¢ted everyone and this continued throughout
2021. The Govemment brought in reslriclions which meant KFMS had lo completely change ils way of
worktng, seeing clients online Inglead of face lo lace and all staff working from home. Inilially, all staff, apart
from the Service Manager and Bookkeeper. were on thè Govemmenl F4Jrlough Scheme. They gradually
rèturned over the following months until all were worknng their normal days by September, with the exception of
one mediator who returned in November. There wa$ another lockdown late 2021 and everyone retumed lo
worknng from home.
Referral numbers reduced during lockdown. but expenses also decreased in respect of venue hire and
mediator expenses. We were successful in our bids for Covid-19 assistance grants, which were used to pay
for rent, uttlities and olh6r core expenses.
The Service was constantly monitored by the Setvlce Managèr and Trustees durlng this tlme.
Despite tha impact of Covid-19, the Service ha8 fared well, and the Trustees wish lo thank the staff for
a¢¢epting the sÉtuation in such a positive way and helsyng the Servi¢e through this unprecedented time.
The Service vwll gradually be re-introducing face to face mediation meelings but also continuing to offer online
medlalion, whtch has been our clients. preferred option. Under our Legal Asd Agency contract, we are required
to offer both.
Kent Famlty Mediation has ¢onlinued lo provide a high, professional stsndard of service which 18 reflected In
the maintained level of turnover.
The Service has continued to meet Its obje¢live of alleviating hardship and dislross caused by the breaking up
of marriage and family, in¢luding assisting separating andlor dlvorcing couples resolve disputes and reach
agreement on matters arising from famity stres5. It is increasingly recogni5ed that professional mediation is
assisting in speedler sèttlements which are more cost efleclive and less acrlmonious than other procedures In
dispute resolutlon. Thls is lo the benefit separating parents and the children of the relationship.
Thè Charity provides mediation Services lu the County of Kent and receives fees ffom privatety paying clients,
and those that are lègally aided. It is expected that legally aided work will conllnue to decline as the criteria for
legaSty aided help ar8 lighlty drawn.
An ongoing prObrn for the mediaOn se¢tor is that the majortty of applicallons received ale by applicants who
just wish lo go through the required motions lo be able lo proceed in court. The level ol applications that
uliimale5y result in mediation remains low. Less than 40% of refeTrals Liy one paty lead lo an initial inlervlew
(the MIAM}. This results in the Charity incurring significgnt overheads in setting up processe5 that do not lead
to mediation and acc(wnts for the slim margins. These costs are ftol re¢ognised by any government funding.
The Charity revi8ws clients, fees annually, within the context of what Is reasonable lo charge as a non-profit
making body. It continues to seek additional funding from a variety of grant making Trusts lo supplement its
resetves. The Charity also remains ¢ons¢ious of the duty lo prowdè public benefit by provKling a service at
significantty less cost than the alternatives and has due regard lo thè guidelines issued by the Charity
CommI8slon.
c. Invostment pdlcy and rfOrManCe
Under the Memorandum and Articles ol Association the Charty has the power to make any investment which
the Tru$l8es see fil.
In accordance with the reserves policy all fund5 are retained in cash and all reswes are now invested with the
COIF (Charitable Organisalions Fund). The COIF Is the13rgesl specialised fLtnd manager in the UK for char¢lies
and has a good record for capital growth.
Pag24
Kent Famlly Mèdlatlon Servic
(A company Ilmlted by guarantsol
Tru5t?g$' rgport {continuedl
for tho yaar ended 31 March 2022
Achiev•m•nts and pgrformanc• Icontlnued)
Flnanclal revlgw
a. Golng concem
After making appropriate enquiries. the Trustees have a reasonable expeclallon that the Charity has adèquate
resources lo continue in operational exSslen¢è for the lore5eeablé fulLJre. For this reason, they continue to
adopt the goi ¢trncèrn basis in preparing the financlal statements. Further detai15 iegarding the adoption of
the golng ¢on¢em basis can be found in the accounting poliGies.
b. Reserves policy
The Trustees have a duly to ensure that the Income and reserves are sufficient lo meet all liabilities whilst
mainlaining a sufficient level lo ensure the tongevily and conlinuallon of th8 Service. The Trustees are ¢bliged
lo review this yearly as part of the annual accounts.
Key elements lo be reviewed are the possible Ilabi1S1ies of rent, resldual payments on equipment leases and
staff redundancy payments. As al the end of the financial year our largel reserve5 figure was £95,102. The
unreslricled werv@s as at 31 March 2022 were £63,440. Although the reserves wère still below the Charity'8
tsrgel figure. the Trustees consider that they havè reasonable grounds for believing that the service ca
continue to improve its finarKial po¥lllon going fO8rd. This is despite fhe Covid-19 pandemic lockdown
measures, Since il appeaTS that, wilh Ihe ggvernment assislan¢e which is avadable. and by ukn"litslng facilities for
online medlation, the SeiCe has been able to maintain its viabllty.
structuroj governanco and management
. cOn5tutI1)n
The Charity is reglslered as a charflable company limited by guarantèè and was sel up by a Memorandum of
Association on 31 March 2001.
The Charity is con51iluted under a Memorandum of Associallon dated 31 March 2001 and Is a rggister&d
charity {number 10874601.
The setvi¢e is affiliated lo the College of Mediqtors, a foundw body of Ihe Family Mediation Cour11, the body
which sets and maintains hlgh standards for the mediation professlon.
b. Mothods of appolntment or olectlon of Trustees
The managernenl of the Charity is the responsibility of the Twslees who are elected and co-opted under the
lemis of the Memorandum ofAssociatson.
c. Organl$atlonal structure and d•cl$lon-maklng policies
The Charlty h8s a management committee which cvmprlses the Trustees, two advlsors lo the Trustees and a
me¢tiator represenlatNe.
The Trtjslees have ultimate responsibility for income and expenditure and policy making and PriGlng changes
are dis¢ussed and approved by the Trustees. The Truglees rneel each quarter lo review progress and the
Chairman and Treasurer are regular contact wllh the employees of the Service in the inlellm.
Page 4
Kent Famlly Mgdlatlon Servlce
{A tompany limlted by guarant901
Note8 to thè flnartelal statemofits
for the year ènded 31 March 2022
15. Analy81$ of net as$8t8 betn furtrds Icontlnuodl
d. Policleg adoplèd for the Inductlon and tralnlng of Tru8tge8
l llew Trusie6s 8re given an initial Indu¢llon when Icir¥ing the Charlly an¢J are Ihen tralned a8 appropriale I
Ihe Charily'5 needs Iher•afler.
e. Flnanclal rl$k rnanagemgnt
7h¢ Yruslees have ass88se"d th& rnalor risk5 lo which the Ch8rlly is &xposed, in particular those rÈbled to trhe
oper31ion$ Iin3n¢es ol IhÈ Charity (Ind are s81isfie(J that sy8lems and proce(Jures are In place lo mliigalo
exposufts 19 th* rnajor rlsks. Th? Servicè will conllnw to monitor si&ifing lovels in line willi woikioad and make
arty ne¢essary a¢Jlu8ltn&ais. We will also source lunding opportunllleg a5 and when they become avallabje,
Plans forfuturè porlod8
Thè Tn1510es will continue lo Support Ih6'0bjeclives and act1¥415 ol the Ch9ri1y for thé foreseeable future. The
Service In¢qnds lo once ou8ln bid lor the Carcass Separated Parents Information Programme ¢onlraGt which is
due for ret)ewal In March 21Y23. stJbleGI lo the lertns or the bidding prwe$5.
Stalgment of Tru$tetr$' respon$lbllltle$
The Tiustees (who are 81so tha Dlrectols of Ihe Charlly for the wiposes of company lawl are responsible for
preparing the Twslees, pOrt and the fina¢181 $ialemÈnts in 8ccordance Wilh applicablé law and United
Klngdom Aecuunting Standard8 Iunilod Kingdorn Gener211y ApIe Accounting Pra¢llcel.
omnY law quIreS the Tru91$6S io prepa financial slaiemenis for each flfianclal yè8r. Under compariy L3w.
the Trtjslees musl not ¥pprove Il* IMiat)cial Slalefflenis unloss they are sali$W Ihal they givo a. true and lair
vlew ¢)f 11)e slaio of affairs ol ttie Charity aad of 11$ 5n¢ome and applicalion of resouree5. inctudit)g Its income
and expet)dllur¢, for th81 period. In preparing these firiancfral sl8temenis, the Tnjslees are Trqul¥ed lo..
8ele¢i 8Uitablo accountlng policies and then appty them consislenlly-.
observe the meth(x15 and prlnciples of Ihe Charilles SORP IFRS 1021.,
make ludgm&Trls 8ccounllng eslirnale8 th81 or8 reasonable and prudent.,
slate whellior appllcable UK Acrx)unlSng Slall(Sards IFRS 1021 have been ftloWed. $ubJect lo any
maleiial dèpartures cli$¢l0sed and explained ift the lian01a4 st¥lemenls',
prep2re Ihe financial Slalements on the going concern basls unle55 It l3108pproprtale lo presume thai Ihe
Charlly wlll cotInUe in business.
The Tmslees ale resptsnslble for keeplng adoqu31e a¢wuTrllng record$ that arè sufficient lo Show and Qxpkin
the CharitW5 transactions and d15close with reasonable 8Cturacy at any lime th8 fin&ncls1 w)sition ol the
Charity and enable them to ensure Ihal the flnancigl slatemenls comply wllh the Cornpan8 Act 2006. They are
also respon.%lble for szfeguardinu the assets of Ihe Charily and hence lor taking aSonable slep8 loi Ihe
preventicn and deieclknn ol fraud and other Irregularilie8.
Approved ty order of th8 rnember$ Dfihe Board of Trustees on Id8lel
nd signed on Ihelr behalf by..
Mr Michael Ba
Tw3tee
MrGr
harn Jones
ett
Page 19
**Registered number: 04186544 Charity number: 1087460**
## **Kent Family Mediation Service**
**(A company limited by guarantee)**
**Unaudited**
**Trustees' report and financial statements for the year ended 31 March 2022**
**Kent Family Mediation Service**
## **(A company limited by guarantee)**
## **Contents**
||Page|
|---|---|
|**Reference and administrative details of the Charity, its Trustees and advisers**|1|
|**Trustees' report**|2 - 6|
|**Independent examiner's report**|7|
|**Statement of financial activities**|8|
|**Balance sheet**|9|
|**Notes to the financial statements**|10 - 19|
**Kent Family Mediation Service**
## **(A company limited by guarantee)**
**Reference and administrative details of the Charity, its Trustees and advisers for the year ended 31 March 2022**
## **Trustees**
Mr Michael Batey Mr Graham Jones Mr Arden Bhattacharya Mr Geoffrey Burr Ms Ann Harrison
## **Company registered number**
04186544
## **Charity registered number**
1087460
## **Registered office**
Office 1 2 Conqueror Court Sittingbourne Kent ME10 5BH
## **Accountants**
Kreston Reeves LLP Chartered Accountants Montague Place Quayside Chatham Maritime Chatham Kent ME4 4QU
Page 1
**Kent Family Mediation Service**
## **(A company limited by guarantee)**
## **Trustees' report for the year ended 31 March 2022**
The Trustees present their annual report together with the financial statements of the Charity for the year from 1 April 2021 to 31 March 2022. The Annual report serves the purposes of both a Trustees' report and a Directors' report under company law. The Trustees confirm that the Annual report and financial statements of the Charity comply with the current statutory requirements, the requirements of the Charity's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts 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 accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published in October 2019.
Since the Charity qualifies as small under section 382 of the Companies Act 2006, the strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
## **Objectives and activities**
## **a. Policies and objectives**
The principal object of the Charity is to alleviate the hardship and distress caused by the breaking up of marriage and family. This includes assisting separating and/or divorcing couples to resolve disputes and reach agreed decisions on matters arising from family stress, financial matters and matters involving children within the County of Kent. The Charity is also established to assist the resolution of family disputes.
Our revenue from the Cafcass SPIPs contract has provided further income to the service and earnings for mediators.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
## **Achievements and performance**
## **a. Main achievements of the Charity**
The service made a surplus of £23,983 (2021: £13,799), during the year ended 31 March 2022, including gains on investments of £435 (2021: £1,868).
Given the tight margins on which the Charity operates, cash flow has always been a major preoccupation and the Charity has maintained a sufficient Balance sheet. Legal Aid payments are received promptly and private clients are required to proceed on a ‘pay in advance’ basis to minimise uncollectible debts.
Page 2
**Kent Family Mediation Service**
## **(A company limited by guarantee)**
**Trustees' report (continued) for the year ended 31 March 2022**
## **Achievements and performance (continued)**
## **b. Review of activities**
March 2020 saw the impact of Covid-19 on the country which affected everyone and this continued throughout 2021. The Government brought in restrictions which meant KFMS had to completely change its way of working, seeing clients online instead of face to face and all staff working from home. Initially, all staff, apart from the Service Manager and Bookkeeper, were on the Government Furlough Scheme. They gradually returned over the following months until all were working their normal days by September, with the exception of one mediator who returned in November. There was another lockdown late 2021 and everyone returned to working from home.
Referral numbers reduced during lockdown, but expenses also decreased in respect of venue hire and mediator expenses. We were successful in our bids for Covid-19 assistance grants, which were used to pay for rent, utilities and other core expenses.
The Service was constantly monitored by the Service Manager and Trustees during this time.
Despite the impact of Covid-19, the Service has fared well, and the Trustees wish to thank the staff for accepting the situation in such a positive way and helping the Service through this unprecedented time.
The Service will gradually be re-introducing face to face mediation meetings but also continuing to offer online mediation, which has been our client's preferred option. Under our Legal Aid Agency contract, we are required to offer both.
Kent Family Mediation has continued to provide a high, professional standard of service which is reflected in the maintained level of turnover.
The Service has continued to meet its objective of alleviating hardship and distress caused by the breaking up of marriage and family, including assisting separating and/or divorcing couples resolve disputes and reach agreement on matters arising from family stress. It is increasingly recognised that professional mediation is assisting in speedier settlements which are more cost effective and less acrimonious than other procedures in dispute resolution. This is to the benefit of separating parents and the children of the relationship.
The Charity provides mediation services to the County of Kent and receives fees from privately paying clients, and those that are legally aided. It is expected that legally aided work will continue to decline as the criteria for legally aided help are tightly drawn.
An ongoing problem for the mediation sector is that the majority of applications received are by applicants who just wish to go through the required motions to be able to proceed in court. The level of applications that ultimately result in mediation remains low. Less than 40% of referrals by one party lead to an initial interview (the MIAM). This results in the Charity incurring significant overheads in setting up processes that do not lead to mediation and accounts for the slim margins. These costs are not recognised by any government funding.
The Charity reviews clients' fees annually, within the context of what is reasonable to charge as a non profit making body. It continues to seek additional funding from a variety of grant making Trusts to supplement its reserves. The Charity also remains conscious of the duty to provide public benefit by providing a service at significantly less cost than the alternatives and has due regard to the guidelines issued by the Charity Commission.
**c. Investment policy and performance**
Page 3
**Kent Family Mediation Service (A company limited by guarantee)**
**Trustees' report (continued) for the year ended 31 March 2022**
## **Achievements and performance (continued)**
Under the Memorandum and Articles of Association the Charity has the power to make any investment which the Trustees see fit.
In accordance with the reserves policy all funds are retained in cash and all reserves are now invested with the COIF (Charitable Organisations Fund). The COIF is the largest specialised fund manager in the UK for charities and has a good record for capital growth.
## **Financial review**
## **a. Going concern**
After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
## **b. Reserves policy**
The Trustees have a duty to ensure that the income and reserves are sufficient to meet all liabilities whilst maintaining a sufficient level to ensure the longevity and continuation of the Service. The Trustees are obliged to review this yearly as part of the annual accounts.
Key elements to be reviewed are the possible liabilities of rent, residual payments on equipment leases and staff redundancy payments. As at the end of the financial year our target reserves figure was £95,102. The unrestricted reserves as at 31 March 2022 were £63,440. Although the reserves were still below the Charity’s target figure, the Trustees consider that they have reasonable grounds for believing that the service can continue to improve its financial position going forward. This is despite the Covid-19 pandemic lockdown measures, since it appears that, with the government assistance which is available, and by utilising facilities for online mediation, the service has been able to maintain its viability.
## **Structure, governance and management**
## **a. Constitution**
The Charity is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 31 March 2001.
The Charity is constituted under a Memorandum of Association dated 31 March 2001 and is a registered charity (number 1087460).
The service is affiliated to the College of Mediators, a founder body of the Family Mediation Council, the body which sets and maintains high standards for the mediation profession.
## **b. Methods of appointment or election of Trustees**
The management of the Charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Memorandum of Association.
Page 4
**Kent Family Mediation Service (A company limited by guarantee)**
## **Trustees' report (continued) for the year ended 31 March 2022**
## **Structure, governance and management (continued)**
## **c. Organisational structure and decision-making policies**
The Charity has a management committee which comprises the Trustees, two advisors to the Trustees and a mediator representative.
The Trustees have ultimate responsibility for income and expenditure and policy making and pricing changes are discussed and approved by the Trustees. The Trustees meet each quarter to review progress and the Chairman and Treasurer are in regular contact with the employees of the Service in the interim.
## **d. Policies adopted for the induction and training of Trustees**
All new Trustees are given an initial induction when joining the Charity and are then trained as appropriate to the Charity's needs thereafter.
## **e. Financial risk management**
The Trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks. The Service will continue to monitor staffing levels in line with workload and make any necessary adjustments. We will also source funding opportunities as and when they become available.
## **Plans for future periods**
The Trustees will continue to support the objectives and activities of the Charity for the foreseeable future. The Service intends to once again bid for the Cafcass Separated Parents Infortmation Programme contact which is due for renewal in March 2023, subject to the terms of the bidding process.
## **Statement of Trustees' responsibilities**
The Trustees (who are also the 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 (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of its income and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Charities SORP (FRS 102);
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Page 5
**Kent Family Mediation Service (A company limited by guarantee)**
## **Trustees' report (continued) for the year ended 31 March 2022**
Approved by order of the members of the Board of Trustees and signed on their behalf by:
Date: 15/ December/2022
**Mr Michael Batey** Trustee Date:
**Mr Graham Jones** Trustee
Page 6
**Kent Family Mediation Service**
## **(A company limited by guarantee)**
## **Independent examiner's report**
**for the year ended 31 March 2022**
## **Independent examiner's report to the Trustees of Kent Family Mediation Service ('the Charity')**
I report to the Charity Trustees on my examination of the accounts of the Charity for the year ended 31 March 2022.
## **Responsibilities and basis of report**
As the Trustees of the Charity (and its Directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Charity 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 Charity's accounts carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
1. accounting records were not kept in respect of the Charity 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.
This report is made solely to the Charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Charity's Trustees those matters I am required to state to them in an independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity's Trustees as a body, for my work or for this report.
Signed:
Dated:
S Robinson BA FCA FCIE DChA MCMI
## **Kreston Reeves LLP**
Chartered Accountants Chatham
Page 7
**Kent Family Mediation Service**
## **(A company limited by guarantee)**
## **Statement of financial activities (incorporating income and expenditure account) for the year ended 31 March 2022**
|**Note**
**Income from:**
Donations and legacies
3
Charitable activities
4
Investments
5
**Total income**
**Expenditure on:**
Charitable activities
6
**Total expenditure**
**Net income before net gains on investments**
Net gains on investments
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Unrestricted**
**funds**
**2022**
**£**
**236**
**308,691**
**151**
**309,078**
**285,530**
**285,530**
**23,548**
**435**
**23,983**
**39,457**
**23,983**
**63,440**|**Total**
**funds**
**2022**
**£**
**236**
**308,691**
**151**
**309,078**
**285,530**
**285,530**
**23,548**
**435**
**23,983**
**39,457**
**23,983**
**63,440**|Total
funds
2021
£
74,924
229,815
324|
|---|---|---|---|
||||305,063|
||||293,132|
||||293,132|
||||11,931
1,868|
||||13,799|
||||25,658
13,799|
||||39,457|
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 10 to 19 form part of these financial statements.
Page 8
**Kent Family Mediation Service**
## **(A company limited by guarantee) Registered number: 04186544**
## **Balance sheet as at 31 March 2022**
|**Note**
**Fixed assets**
Investments
9
**Current assets**
Debtors
10
Cash at bank and in hand
Creditors: amounts falling due within one
year
11
**Net current assets**
**Total net assets**
**Charity funds**
Restricted funds
12
Unrestricted funds
12
**Total funds**|**34,795**
**38,485**
**73,280**
**(16,737)**|**2022**
**£**
**6,897**
**6,897**
**56,543**
**63,440**
**-**
**63,440**
**63,440**|23,951
26,691
50,642
(17,496)|2021
£
6,311|
|---|---|---|---|---|
|||||6,311
33,146|
||||||
|||||39,457|
|||||-
39,457|
||||||
|||||39,457|
The Charity was entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the Charity to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
Date: 15/ December/2022 Type text here **Mr Michael Batey Mr Graham Jones** Trustee Trustee Date:
The notes on pages 10 to 19 form part of these financial statements.
Page 9
**Kent Family Mediation Service**
## **(A company limited by guarantee)**
**Notes to the financial statements for the year ended 31 March 2022**
## **1. General information**
The Charity is a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is 1 London Road, Sittingbourne, Kent, ME10 1NQ.
## **2. Accounting policies**
## **2.1 Basis of preparation of financial statements**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.
Kent Family Mediation Service 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.
## **2.2 Company Status**
The Charity is a company limited by guarantee. The members of the Charity are the Trustees named on page 1. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity.
## **2.3 Going concern**
The Trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the Charity has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the Charity's ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.
## **2.4 Income**
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Grants are included in the statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Page 10
**Kent Family Mediation Service**
## **(A company limited by guarantee)**
**Notes to the financial statements for the year ended 31 March 2022**
## **2. Accounting policies (continued)**
## **2.5 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.
Charitable activities are costs incurred on the Charity's operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.
## **2.6 Government grants**
Government grants relating to tangible fixed assets are treated as deferred income and released to the statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the statement of financial activities as the related expenditure is incurred.
## **2.7 Investments**
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless fair value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading ‘Gains/(losses) on investments’ in the Statement of financial activities incorporating income and expenditure account.
## **2.8 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.
## **2.9 Taxation**
The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
## **2.10 Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **2.11 Cash at bank and in hand**
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
Page 11
**Kent Family Mediation Service (A company limited by guarantee)**
**Notes to the financial statements for the year ended 31 March 2022**
## **2. Accounting policies (continued)**
## **2.12 Liabilities and provisions**
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.
## **2.13 Financial instruments**
The Charity 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.
## **2.14 Pensions**
The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.
## **2.15 Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
## **3. Income from donations and legacies**
|Donations
Grants
Government grants
**Total 2022**
Total 2021|**Unrestricted**
**funds**
**2022**
**£**
236
-
-
236
74,924|**Total**
**funds**
**2022**
**£**
**236**
**-**
**-**
**236**
74,924|Total
funds
2021
£
9,501
30,276
35,147|
|---|---|---|---|
||||74,924|
|||||
Page 12
**Kent Family Mediation Service**
## **(A company limited by guarantee)**
## **Notes to the financial statements for the year ended 31 March 2022**
## **4. Income from charitable activities**
|Client Payments
Legal services commission
SPIPS
**Total 2022**
Total 2021|**Unrestricted**
**funds**
**2022**
**£**
134,340
93,567
80,784
308,691
229,815|**Total**
**funds**
**2022**
**£**
**134,340**
**93,567**
**80,784**
**308,691**
229,815|Total
funds
2021
£
98,859
60,704
70,252|
|---|---|---|---|
||||229,815|
|||||
## **5. Investment income**
|Bank interest
Total 2021|**Unrestricted**
**funds**
**2022**
**£**
151
324|**Total**
**funds**
**2022**
**£**
**151**
324|Total
funds
2021
£
324|
|---|---|---|---|
|||||
## **6. Analysis of expenditure by activities**
|Charitable Activities
Total 2021|**Direct**
**costs**
**2022**
**£**
238,059
237,936|**Support**
**costs**
**2022**
**£**
47,471
55,196|**Total**
**funds**
**2022**
**£**
**285,530**
293,132|Total
funds
2021
£
293,132|
|---|---|---|---|---|
||||||
Page 13
**Kent Family Mediation Service (A company limited by guarantee)**
## **Notes to the financial statements for the year ended 31 March 2022**
## **6. Analysis of expenditure by activities (continued)**
## **Analysis of direct costs**
|Staff costs
Library
Hire of rooms
Affiliation fees
Training
Photocopier|**Total**
**funds**
**2022**
**£**
**231,630**
**709**
**(904)**
**1,242**
**437**
**4,945**
**238,059**|Total
funds
2021
£
223,970
1,336
7,954
(243)
-
4,919|
|---|---|---|
|||237,936|
During the year all of the direct costs were from unrestricted funds (2021: £231,314 from unrestricted funds and £6,612 from restricted funds).
## **Analysis of support costs**
|Independent examination fees
Professional fees
Premises costs
Office expenses
Printing and stationery
Telephone
Insurance
Bad debts
Publicity costs
Communication and I.T
Bank charges|**Total**
**funds**
**2022**
**£**
**895**
**250**
**21,291**
**6,460**
**1,836**
**1,297**
**567**
**5,962**
**287**
**4,456**
**4,170**
**47,471**|Total
funds
2021
£
850
588
31,313
5,719
1,821
4,128
510
4,650
-
2,480
3,137|
|---|---|---|
|||55,196|
All of the support costs, in both financial years, were from unrestricted funds.
Page 14
**Kent Family Mediation Service (A company limited by guarantee)**
## **Notes to the financial statements for the year ended 31 March 2022**
## **7. Staff costs**
|Wages and salaries
Social security costs
Pension costs|**2022**
**£**
**212,478**
**15,806**
**3,346**
**231,630**|2021
£
204,181
15,204
4,585|
|---|---|---|
|||223,970|
The average number of persons employed by the Charity during the year was as follows:
|**2022**|2021|
|---|---|
|**No.**|No.|
|**10**|10|
No employee received remuneration amounting to more than £60,000 in either year.
During the financial year remuneration and benefits totalling £57,734 (2021 - £60,052), including employer's national insurance contributions, were paid to the Charity's key management personnel.
## **8. Trustees' remuneration and expenses**
During the year, no Trustees received any remuneration or other benefits (2021 - £NIL).
During the year ended 31 March 2022, no Trustee expenses have been incurred (2021 - £NIL).
## **9. Fixed asset investments**
|**Cost or valuation**
At 1 April 2021
Additions
Revaluations
At 31 March 2022
**Net book value**
At 31 March 2022
At 31 March 2021|**Listed**
**investments**
**£**
**5,013**
**-**
**435**
**5,448**
**5,448**
5,013|**Cash held at**
**investment**
**managers**
**£**
**1,298**
**151**
**-**
**1,449**
**1,449**
1,298|**Total**
**£**
**6,311**
**151**
**435**|
|---|---|---|---|
||||**6,897**|
||||**6,897**|
||||6,311|
Page 15
**Kent Family Mediation Service (A company limited by guarantee)**
## **Notes to the financial statements for the year ended 31 March 2022**
## **9. Fixed asset investments (continued)**
Cash held at investment managers has been re-analysed from Current assets (Cash at bank and in hand) to Fixed asset investments.
## **Material investments**
Listed investments comprise a holding of COIF Charities Investment Fund income units, plus a small sum of cash held on account by the Investment Brokers.
## **10. Debtors**
||**2022**|2021|
|---|---|---|
||**£**|£|
|**Due within one year**|||
|Trade debtors|**13,263**|14,913|
|Prepayments and accrued income|**21,532**|9,038|
## **11. Creditors: Amounts falling due within one year**
|Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income|**2022**
**£**
**2,099**
**12,499**
**794**
**1,345**
**16,737**|2021
£
2,990
12,806
850
850|
|---|---|---|
||||
|||17,496|
Page 16
**Kent Family Mediation Service (A company limited by guarantee)**
## **Notes to the financial statements for the year ended 31 March 2022**
## **12. Statement of funds**
## **Statement of funds - current year**
||||||**Balance at**|
|---|---|---|---|---|---|
||**Balance at 1**|||**Gains/**|**31 March**|
||**April 2021**|**Income**|**Expenditure**|**(Losses)**|**2022**|
||**£**|**£**|**£**|**£**|**£**|
|**Unrestricted funds**||||||
|General Funds|**39,457**|**309,078**|**(285,530)**|**435**|**63,440**|
|**Statement of funds - prior year**||||||
||||||Balance at|
||Balance at|||Gains/|31 March|
||1 April 2020|Income|Expenditure|(Losses)|2021|
||£|£|£|£|£|
|**Unrestricted funds**||||||
|General Funds|19,046|305,063|(286,520)|1,868|39,457|
|**Restricted funds**||||||
|Awards for All|6,612|-|(6,612)|-|-|
|**Total of funds**|25,658|305,063|(293,132)|1,868|39,457|
|||||||
Page 17
**Kent Family Mediation Service (A company limited by guarantee)**
## **Notes to the financial statements for the year ended 31 March 2022**
## **13. Summary of funds**
## **Summary of funds - current year**
|General funds|**Balance at 1**
**April 2021**
**£**
**39,457**
Balance at
1 April 2020
£
19,046
6,612
25,658|**Income**
**£**
**309,078**
Income
£
305,063
-
305,063|**Expenditure**
**£**
**(285,530)**
Expenditure
£
(286,520)
(6,612)
(293,132)|**Gains/**
**(Losses)**
**£**
**435**
Gains/
(Losses)
£
1,868
-
1,868|**Balance at**
**31 March**
**2022**
**£**
**63,440**
Balance at
31 March
2021
£
39,457
-|
|---|---|---|---|---|---|
|**Summary of funds - prior year**||||||
|General funds
Restricted funds||||||
||||||39,457|
## **14. Analysis of net assets between funds**
## **Analysis of net assets between funds - current year**
|Fixed asset investments
Current assets
Creditors due within one year
**Total**|**Unrestricted**
**funds**
**2022**
**£**
6,897
73,280
(16,737)
63,440|**Total**
**funds**
**2022**
**£**
**6,897**
**73,280**
**(16,737)**|
|---|---|---|
|||**63,440**|
## **Analysis of net assets between funds - prior year**
|Fixed asset investments
Current assets
Creditors due within one year
**Total**|Unrestricted
funds
2021
£
6,311
50,642
(17,496)
39,457|Total
funds
2021
£
6,311
50,642
(17,496)|
|---|---|---|
|||39,457|
Page 18
**Kent Family Mediation Service (A company limited by guarantee)**
## **Notes to the financial statements for the year ended 31 March 2022**
## **15. Pension commitments**
The Charity operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the Charity to the fund and amounted to £3,346 (2021: £4,585). There were contributions of £794 payable to the fund at the Balance sheet date (2021 - £850).
## **16. Operating lease commitments**
At 31 March 2022 the Charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:
|Not later than 1 year
Later than 1 year and not later than 5 years|**2022**
**£**
**19,373**
**18,000**
**37,373**|2021
£
4,120
1,373|
|---|---|---|
||||
|||5,493|
## **17. Related Party transactions**
The Charity has not entered into any related party transactions during the financial year (2021: £nil) and at the balance sheet date there are no balances outstanding with any related parties (2021: £nil)..
Page 19
## **Kent Family Mediation Service**
**1087460**
1 London Road Sittingbourne Kent ME10 1QN
Kreston Reeves LLP Chartered Accountants Montague Place Quayside Chatham Maritime Chatham Kent ME4 4QU
Dear Sirs
This letter is furnished at your request in connection with your independent examination of the financial statements of the charity for the year ended 31 March 2022 for the purposes enabling you to issue your report to the trustees required by the Charities Act 2011 in respect of the charity’s accounting records and preparation of the financial statements.
We recognise that our representations concerning the matters referred to below are significant in enabling you to issue your independent examiner’s report.
In particular, we have carefully considered the impact of the COVID-19 pandemic and the UK’s exit from the European Union (‘Brexit’), on the charity’s business and its financial statements.
We have fulfilled our responsibilities as trustees of the charity, as set out in your terms of engagement, under the Charities Act 2011/Companies Act 2006 for preparing financial statements in accordance with the applicable law and United Kingdom Generally Accepted Accounting Practice, which you have drafted on our behalf, which give a true and fair view of the financial position of the charity as of the period end and of the results of operations for the period then ended and for making accurate representations to you.
The financial statements have been prepared in accordance with the Companies Act 2006 / Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust Deed, and in accordance with United Kingdom Generally Accepted Accounting Practice, including _Accounting and Reporting by Charities: The Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102)_ (“the SORP”), including all subsequent Update Bulletins issued that apply to the period under review .
## **Audit exemption**
We confirm that the charity is entitled to the exemptions from an audit of the financial statements as set out in the Charities Act 2011 in that:-
- The incoming resources of the charity did not exceed £1 million; or
- The incoming resources of the charity did not exceed £250,000 and the charity’s gross assets did not exceed £3.26million; or
- The incoming resources of the charity and its group did not exceed £1 million, after eliminating intra group transactions and consolidation adjustments; and
An audit of the financial statements is not required by the charity’s governing documents.
- 1-
We confirm that the charitable company is entitled to the exemptions from an audit of the financial statements as set out in Section 477 of the Companies Act 2006.
## **Fraud**
We acknowledge our responsibility for the design, implementation and maintenance of a system of internal control in order to prevent and detect fraud.
We have assessed the risk that the financial statements may be materially misstated as a result of fraud and it is our opinion that any such risk is minimal.
We are not aware of any irregularities involving management or employees who have a significant role with regards to the internal control system or that could have a material effect on the financial statements.
We are not aware of any fraud or suspected fraud of any kind communicated by current or former employees, analysts, regulators or any others.
We are not aware of matters related to fraudulent activity or other non-compliance with law or regulation arising since the beginning of the period which have been communicated to the Charity Commission.
## **Provision of information**
We have made available to your representatives all significant financial records and related data. We have provided to you all other information requested and given unrestricted access to persons within the charity from whom you have deemed it necessary to obtain information. All other records and related information, including minutes of all management meetings, have been made available to you.
## **Accounting records**
All financial transactions of the charity have been properly reflected in the accounting records in accordance with the requirements of the Charities Act 2011 / Companies Act 2006 and have been properly reflected in the financial statements.
## **Accounting estimates**
We confirm that the methods, data and significant assumptions used by us in making accounting estimates, and their related disclosures, are appropriate to achieve recognition, measurement and disclosure that is reasonable in the context of the applicable financial reporting framework. We confirm that we have informed you of all such significant assumptions.
## **Minutes and Contracts**
The minute books presented to you contain complete and authentic minutes of all meetings of the charity’s trustees held since the beginning of the period under review.
We have complied with all aspects of contractual agreements that would have a material effect on the financial statements in the event of non-compliance.
None of the trustees had at any time in the period an interest in any contract with the charity except as disclosed in the notes to the financial statements.
## **Law and Regulations**
We confirm that we are not aware of any possible or actual instance of non-compliance with those laws and regulations which provide a legal and regulatory framework within which the charity conducts its business and which are central to the charity’s ability to conduct its business, except as explained to yourselves and disclosed in the financial statements.
- 2-
We confirm that we have reviewed the guidance “How to report a serious incident in your charity” published by the Charity Commission. We also confirm that no Serious Incident Reports have been submitted to the Charity Commission, nor any events considered for submission, during the accounting period or in the period from the balance sheet date to the date of approval of the financial statements.
We are not aware of any instances during the period where the charity has operated outside its charitable objectives as laid down in its governing documents.
We can confirm that our procedures for handling data are compliant with the General Data Protection Regulation and that there have been no events which could result in any penalty being levied by the Information Commissioner’s Office which could have a material impact on the financial statements.
## **Tangible Fixed Assets**
The net book amounts at which fixed assets are included in the balance sheet are arrived at:
- After taking into account all capital expenditure on additions thereto, but no expenditure properly chargeable to revenue.
- After eliminating the cost and accumulated depreciation relating to items sold or otherwise disposed of.
- After providing for amortisation and impairment at rates sufficient to reduce the net book amounts to their residual value by the time they become no longer economically useful to the charity.
We confirm that all tangible fixed assets included in the financial statements exist at the balance sheet date.
## **Investments**
None of the charity's investments have declined in value to an amount less than the carrying value in the balance sheet.
## **Other Current Assets**
We are of the opinion that other current assets have a value on realisation in the ordinary course of operations at least equal to the amounts at which they are stated in the financial statements. In particular adequate provision has been made against all amounts owing to the charity, which are known, or may be expected, to be irrecoverable.
## **Assets - General**
We confirm that the charity has satisfactory title to all assets appearing in the balance sheet and that they are free from any lien or charge unless otherwise stated in the financial statements.
We have no intentions that may materially alter the carrying value or classification of assets and liabilities reflected in the financial statements.
## **Liabilities - General**
All known liabilities of the charity at the balance sheet date have been included in the financial statements. Adequate provisions have been made in the financial statements for liabilities, which are known to exist but the amount of which, cannot be accurately determined.
Provision has been made for all grant commitments made by the charity in line with the requirements of the SORP.
- 3-
## **Contingent Liabilities**
We have disclosed to you all claims in connection with litigation or any other claims of material importance that have been, or are expected to be, received and any such claims have been appropriately accounted for and disclosed in the financial statements. We have disclosed to you all other contingent liabilities.
## **Taxation**
The charity has not undertaken any activities during the year upon which a tax liability arises.
## **Statement of financial activities**
All income of the charity for the period under review has been included in the financial statements.
Except as disclosed in the financial statements the results for the period were not materially affected by:
- transactions of a sort not usually undertaken by the charity.
- circumstances of an exceptional or non-recurring nature.
- charges or credits relating to prior periods.
All grants, donations and other income, the receipt of which is subject to specific terms or conditions, have been notified to you. There have been no breaches of terms or conditions during the period in the application of such income.
## **Transactions with trustees and other related parties**
## _Trustees’ remuneration_
We confirm that no remuneration was paid to trustees during the period under review.
_Key management personnel compensation_
We confirm that in addition to the trustees of the charity, the following individuals are considered to have formed part of the Key Management of the charity during the accounting period due to their authority and responsibility for planning, directing and controlling the activities of the charity:
- K Clarke
- D Ingamells
We confirm the accuracy of the disclosure of the Key Management Personnel compensation, which includes all employee benefits paid, payable or provided by the charity or on behalf of the charity in exchange for services rendered to the charity. It also includes any consideration paid on behalf of any parent undertaking of the charity in respect of any goods or services provided to the charity.
## _Directors’ advances, credits and guarantees_
The charity has had at no time during the period any arrangement, transaction or agreement to provide credit facilities (including loans, quasi loans or credit transactions) for directors and other related parties nor to guarantee or provide security for such facilities except as disclosed in the financial statements.
## _Related party transactions_
We confirm that we have fully disclosed to you the identity of all of the charity’s related parties.
You have been provided with details of all transactions between the charity and its related parties that have arisen during the accounting period and we confirm that the disclosure made in the financial statements of these transactions is complete and accurate.
- 4-
We confirm the factual accuracy of the controlling party disclosure in the financial statements.
## **Capital Commitments**
The financial statements make full disclosure of all outstanding amounts contracted for at the balance sheet date in respect of capital expenditure.
## **Post Balance Sheet Events**
Since the balance sheet date no events or transactions have either occurred or are pending which would have a material effect upon the financial statements at that date, or for the period then ended, or which are of such significance in relation to the charity’s affairs as to require disclosure in the financial statements.
## **Financial Facilities**
Since the balance sheet date adequate financial facilities have continued to be available to the charity and we have no reason to believe that such facilities will be withdrawn within the next twelve months.
## **Review of going concern basis**
We confirm that we have considered the charity’s future operations, working capital requirements and cashflows and we feel that the going concern basis is appropriate for the preparation of the financial statements for the period under review. Our considerations have covered a period of not less than 12 months from the date of the approval of the financial statements.
Our consideration has included a thorough assessment of the charity’s ability to continue trading as a going concern in light of the COVID-19 pandemic and the global economic uncertainty it has caused, and of Brexit and the end of the Brexit transition period. We have taken appropriate measures, as far as possible based on the information currently available to us, to safeguard the current and future operations of the charity.
In making this assessment we have prepared revised forecasts, cashflows and our disaster planning includes due consideration of coronavirus contingency measures.
All projected cashflows, management accounts and other information and assumptions used in reaching this conclusion have been made available to you for the purposes of your assignment. We confirm that our plans for future actions required to enable the charity to continue as a going concern are feasible.
There are no material uncertainties of which we are aware that cast doubt on the charity’s ability to continue as a going concern.
We are of the opinion that the disclosure on going concern in both the trustees’ report and the financial statements is an accurate reflection of the charity’s financial position.
## **Current economic climate – COVID-19 and Brexit**
We confirm that we are aware of our responsibility as trustees to consider, as far as possible with the information currently available to us, the full impact of the COVID-19 pandemic and its effect on the global economic climate (together ‘COVID-19’) and Brexit and the end of the transition period (together ‘Brexit’), on all aspects of the charity’s financial and narrative reporting.
We confirm that all representations made in this letter include due consideration of these factors. In particular this includes, but is not limited to, the following:
- Appropriate disclosure has been included in the charity’s narrative reporting regarding the impact of COVID-19 and Brexit on the charity’s performance during the period, our assessment of principal risks and uncertainties and the future activity of the charity;
- We acknowledge our responsibility in the preparation of the financial statements for making appropriate judgments, estimates and assumptions. We have informed you of the judgements
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and estimates, including those related to COVID-19 and Brexit, that have had the most significant impact on the financial statements;
- The financial statements reflect the conditions which existed at the reporting date,
- to the extent that the spread of COVID-19 was known and government measures were announced, together with its impact on the local and global economic climate; and
- to the extent that arrangements and agreements had been announced in respect of the UK leaving the European Union.
- The effect of material non-adjusting events subsequent to the reporting date has been disclosed in the financial statements;
- We have reassessed the value of the charity's investments in light of COVID-19 and Brexit. We confirm that they have not declined in value to an amount less than the carrying value at the reporting date;
- We have considered whether the charity’s tangible fixed assets have been impaired due to COVID-19 and Brexit. We have also considered whether our estimate of useful economic lives remains appropriate. Our consideration has included a review of the current market value of those assets and their future economic performance;
- At the reporting date, any additional liabilities arising as a result of COVID-19 and Brexit have been recognised. We have specifically considered whether any additional provision is required in respect of:
- Doubtful debts;
- Onerous leases and contracts;
- Redundancy payments.
## **Approval of Financial Statements**
We confirm that the above representations are made on the basis of enquiries of management and staff with relevant knowledge and experience and, where appropriate, of inspection of supporting documentation sufficient to satisfy ourselves that we can properly make each of the above representations to you.
The financial statements and the contents of this letter were formally approved by the board at a meeting held on the date shown below.
Yours faithfully
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SIGN
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## **Trustee** `MICHAEL BATEY`
for and on behalf of the Board of Trustees
> Date: `19/12/22`
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