International Federation of Professional Aromatherapists Company limited by guarantee
Directors' report and financial statements
for the year ended 31 March 2022
Charity registration number 1091325 Company registration number 04388652
International Federation of Professional Aromatherapists Company limited by guarantee
Contents
| Page | |
|---|---|
| Directors' and trustees report | 1 - 5 |
| Independent examiners report | 6 |
| Statement of financial activities | 7 |
| Balance sheet | 8 - 9 |
| Notes to the financial statements | 10 - 15 |
International Federation of Professional Aromatherapists Company limited by guarantee
Directors' and trustees report for the year ended 31 March 2022
The directors and trustees present their report and the financial statements for the year ended 31 March 2022.
| Reference and administrative | details |
|---|---|
| Company name: | International Federation of Professional Aromatherapists |
| Charity registration number: | 1091325 |
| Company registration number: | 04388652 |
| Registered office: | 82 Ashby Road |
| Hinckley | |
| Leicestershire | |
| LE10 1SN | |
| Company secretary: | R Morrice |
| Treasurer: | Ms J Court |
| Independent examiner: | Integra Accounting Limited |
| 5 Station Road | |
| Hinckley | |
| Leicestershire | |
| LE10 1AW | |
| Bankers: | HSBC Bank PLC |
| 10 Market Place | |
| Hinckley | |
| Leicestershire | |
| LE10 1NU |
Directors
The directors (who are also trustees of the charity for the purpose of charity law) who served during the year are as stated below:
| Louise Carta | Deborah Moore | ||
|---|---|---|---|
| Suk Kwan Chan | Elected 07.12.21 | Sunita Teckchand | |
| Jane Court | Beth Thomas | ||
| Christine Courtney | Eric Cheng | Resigned 07.12.21 | |
| Kazue Gill | Noreen Ferguson-Hughes | Elected 07.12.21, Resigned 21.02.22 | |
| Manuela Isgro | Elected 07.12.21 | Gabriel Mojay | Resigned 03.02.22 |
| Milena Ivanova | Tomomi Nakamura | Resigned 05.06.21 |
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International Federation of Professional Aromatherapists Company limited by guarantee
Directors' and trustees report for the year ended 31 March 2022
.................... continued
Structure governance and management
The Charity was incorporated as a private company limited by guarantee on 6 March 2002. The company registration number is 04388652. The charitable company is governed by its Memorandum and Articles of Association which outline the administration, objects and powers of the charity.
The Articles provide for the governing body to be appointed from its membership by election at the annual General Meeting or Directors ("Trustees") can also be co-opted by the Board (the charity's governing body) as a vacancy arises.
It is intended, as far as possible, to maintain a broad range of skills within the Board of Trustees, covering education, management, finance and business skills.
Objectives and activities
The principal objective of the Charity is the preservation of health by advancing knowledge, practice and expertise in aromatherapy by education, teaching and training and other lawful charitable means.
The Federation's members are trained to high and exacting standards and the organisation considers itself a centre of excellence for clinical and holistic aromatherapy globally.
The activities undertaken by the Charity are in support of these objectives and include the following:
-
a strong, robust accreditation system for approving and registering schools, their tutors and courses which maintain the high standards of education required by the Federation
-
the awarding and ongoing review, through CPD, of a high-quality qualification gained on attaining the stringent requirements for admission to full membership and which is recognized internationally
-
a high standard of practice and a qualification which is recognized by Complementary Therapy Insurers
-
increasing awareness of aromatherapy including evidence based research through events, conferences, publications, and regional groups
-
engagement with the wider community and peer groups including registration with the National Institute of Clinical Excellence as a consultative stakeholder.
The Directors have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charitable company's aims and objectives and in planning future activities. In particular, the Directors have considered how planned activities will contribute to the aims and objectives set.
Page 2
International Federation of Professional Aromatherapists Company limited by guarantee
Directors' and trustees report for the year ended 31 March 2022
.................... continued
Financial review
The results of the year and financial position are shown in the annexed financial statements.
The organisation reports a net loss for the year of £12,491 (2021: net profit £24,202) and Net Assets of £269,520 (2021: £282,011) which reflects the loss.
The total income fell to £142,936 (2021: £164,025), a 13% decrease on the previous year. This is mainly attributable to a fall in conference income of £10k to £3,185 and a one off Covid support grant of £10k received last year. Individual membership fees and School income remained relatively consistent.
The total expenditure increased by over £15k during the year to £155,427 (2021: £139,823) an 11% increase on the previous year. Management and administration expenses increased to £106,681 (2021: £89,365), and Direct charitable expenditure increased to £46,425 (2021: £40,795), while Fundraising and publicity decreased to £2,321 (2021: £9,663).
The Board has the following matters to report on for these financial statements:
-
An Accrued and Deferred income recognition policy is now in place. Advance membership payments received at the year-end but relating to the next year are deferred for inclusion in that year's figures and membership fees received that straddle a year end are apportioned accordingly
-
The figures do not include gift aid as IFPA's approach to gift aid remains under review
-
The Federation owns outright the Hinckley Head Office, which in common with other fixed assets is carried in the accounts at depreciated cost.
No funds are held as custodian trustee on behalf of others, and none of the Charity's funds are restricted in their use, other than by legal and constitutional considerations.
Reserves policy
The Charity has no specific reserves policy however it currently maintains a cash reserve of £75,000, generally in line with the Ofqual recommendations in respect of reserves. This cash is held in a separate deposit account.
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International Federation of Professional Aromatherapists Company limited by guarantee
Directors' and trustees report for the year ended 31 March 2022
.................... continued
Achievements and performance
Despite losing its longstanding Chair, Gabriel Mojay, earlier in 2022 the Board has continued to maintain its focus on strategic objectives throughout the remainder of 2022 building on initiatives started in 2021. Rotating the chairmanship of Board meetings amongst those board members chairing subcommittees of the Board charged with taking the organisation forward in terms of governance, education and accreditation policy and marketing and PR.
The Board begun its work to update and comprehensively revise the educational syllabus to meet the challenges of the post covid environment and will imminently launch the new syllabus following a period of consultation with credited training provider partners.
Having carefully considered the requirements of accreditation by the UK Professional Standards Authority (UKPSA) the Board decided to take a step back to improve and build upon IFPA's own accreditation processes, code of professional conduct and website all of which would form a substantial part of any future application for PSA accreditation.
We continue to seek and find ways to improve membership engagement monitoring closely the impact of the cost-of-living crisis and on IFPA's wider membership as well as the organisation itself.
The Board wishes to acknowledge the excellent support of Beth Thomas and Milena Ivanova both of whom will be stepping down from the Board at the conclusion of the forthcoming AGM. Their expertise and experience have been invaluable to the board over the last two years.
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International Federation of Professional Aromatherapists Company limited by guarantee
Directors' and trustees report for the year ended 31 March 2022
Statement of Directors' responsibilities
The trustees (who are also directors of the company for the purposes of company law) are responsible for preparing the Directors' 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 directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period.
In preparing those financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently
-
observe method and principles in the Charities SORP
-
make judgements and estimates that are reasonable and prudent
-
state whether applicable UK Accounting Standards have been followed, subject to any material departure disclosed and explained in the financial statements
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for maintaining proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
This report was approved by the Board on 11 October 2022 and signed on its behalf by
J Court Director
Page 5
International Federation of Professional Aromatherapists Company limited by guarantee
Independent examiner's report to the trustees on the unaudited financial statements of International Federation of Professional Aromatherapists.
I report on the financial statements of International Federation of Professional Aromatherapists for the year ended 31 March 2022 which are set out on pages 7 to 14.
Respective responsibilities of trustees and examiner
The charity's trustees (who are also the directors of the company for the purpose of company law) are responsible for the preparation of the accounts, the trustees consider that the audit requirement of section 43(2) of the Charities Act 2011 (the Act) does not apply and that an independent examination is needed.
It is my responsibility to:
-
-examine the accounts under section 145 of the Charities Act
-
to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the Charities Act, and
-
state whether particular matters have come to my attention.
Basis of independent examiner's report
My examination was carried out in accordance with the general directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charitable company and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a "true and fair view" and the report is limited to those matters set out in the statement below.
Independent examiner's statement
In connection with my examination, no matter has come to my attention:
-
(1) which gives me reasonable cause to believe that in, any material respect, the requirements;
-
to keep accounting records in accordance with section 130 of the Charities Act; and
-
to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act
have not been met; or
- (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Mrs J Carter FCCA Integra Accounting Limited
5 Station Road, Hinckley, Leicestershire, LE10 1AW 11 October 2022
Page 6
International Federation of Professional Aromatherapists Company limited by guarantee
Statement of financial activities
For the year ended 31 March 2022
| Unrestricted Restricted funds funds Notes £ £ Incoming resources Membership fees 124,689 - Administration fees 1,867 - Schools 12,671 - Advertising 516 - Conference income 3,185 - Investment income 7 8 - Grants received 8 - - Total incoming resources 142,936 - Resources expended Direct charitable expenditure 9 46,425 - Fundraising and publicity 10 2,321 - Management and administration expenses of the charity 11 106,681 - Total charitable expenditure 155,427 - Net movement in funds ) (12,491 - Reconciliation of funds Total funds brought forward 282,011 - Total funds carried forward 269,520 - |
2022 Total £ 124,689 1,867 12,671 516 3,185 8 - 142,936 46,425 2,321 106,681 155,427 ) (12,491 282,011 269,520 |
2021 Total £ 125,467 1,668 12,801 473 13,576 40 10,000 |
|---|---|---|
| 164,025 | ||
| 40,795 9,663 89,365 |
||
| 139,823 | ||
| 24,202 257,809 |
||
| 282,011 |
The statement of financial activities includes all gains and losses recognised in the period. All incoming resources and resources expended derived from continuing activities.
The notes on pages 10 to 15 form an integral part of these financial statements.
Page 7
International Federation of Professional Aromatherapists Company limited by guarantee
Balance sheet as at 31 March 2022
| Notes Fixed assets Tangible assets 12 Current assets Debtors 13 Cash at bank and in hand Prepayments and accrued income Creditors: amounts falling due within one year 14 Net current assets Total assets less current liabilities Accruals and deferred income Net assets Reserves Profit and loss account 15 Members' funds |
2022 £ 3,886 253,394 257,280 2,137 ) (7,624 |
£ 97,401 251,793 349,194 ) (79,674 269,520 269,520 269,520 |
2021 £ 7,772 260,118 267,890 4,370 ) (10,616 |
£ 101,041 261,644 362,685 ) (80,674 282,011 282,011 282,011 |
|---|---|---|---|---|
The directors' statements required by Sections 475(2) and (3) are shown on the following page which forms part of this Balance Sheet.
The notes on pages 10 to 15 form an integral part of these financial statements.
Page 8
International Federation of Professional Aromatherapists Company limited by guarantee
Balance sheet (continued)
Directors' statements required by Sections 475(2) and (3) for the year ended 31 March 2022
For the year ending 31 March 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors Responsibilities
-
The shareholders have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476;
-
The directors acknowledge their responsibilities for complying with the requirements of the act with respect to the accounting records and preparation of financial statements.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
The accounts were approved by the board of directors and authorised for issue on 11 October 2022 and are signed on behalf of the board by:
J Court Director
Registration number 04388652
The company is a private company limited by guarantee, registered in England. The address of the registered office is 82 Ashby Road, Hinckley, Leicestershire, LE10 1SN.
The notes on pages 10 to 15 form an integral part of these financial statements.
Page 9
International Federation of Professional Aromatherapists Company limited by guarantee
Notes to the financial statements for the year ended 31 March 2022
1. General Information
The charity is a company limited by guarantee registered in England. The Trustees are named on the directors' and trustees report. In the event of the charity being wound up, the liability in respect of the guarantee is limited to a maximum of £10 per member of the charity. The address of the registered office is 82 Ashby Road, Hinckley, Leicestershire, LE10 1SN.
2.
Statement of compliance
These have been prepared in compliance with the provisions of FRS 102, Section 1A, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
The financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP 2005) "Accounting and Reporting by Charities" published in March 2005 and in the accordance with FRS102, Section 1A. The directors have taken advantage of the concessions available for smaller charities within SORP 2005 and have chosen to use resource classification appropriate to the charitable company's circumstances and activities.
3. Accounting policies
3.1. Basis of preparation
The have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
3.2. 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.
3.3. Incoming resources
All incoming resources are included in the statement of financial activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received.
Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. No amounts are included in the financial statements for services donated by volunteers.
Page 10
International Federation of Professional Aromatherapists Company limited by guarantee
Notes to the financial statements for the year ended 31 March 2022
.................... continued
3.4. Resources expended
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of the resources.
3.5. Tangible fixed assets and depreciation
Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:
- Freehold property 2% straight line - Property improvements 20% reducing balance - Fixtures and fittings 20% reducing balance - Computer equipment 25% straight line
3.6. Finance and operating leases
Rentals applicable to operating leases are charged to the statement of financial activities over the period in which the cost is incurred.
3.7. Pensions
The pension costs charged in the financial statements represent the contribution payable by the company during the year.
3.8. Foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange prevailing at the accounting date. Transactions in foreign currencies are recorded at the date of the transactions. All differences are taken to the Profit and Loss account.
4. Staff costs
The average number of persons employed by the company during the year was 3 (2021: 3).
5. Directors' remuneration
No directors received any remuneration for their services in the role during the year.
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International Federation of Professional Aromatherapists Company limited by guarantee
Notes to the financial statements for the year ended 31 March 2022
.................... continued
6. Pension costs
The company operates a defined contribution pension scheme. The scheme and its assets are held by independent managers. The pension charge represents contributions due from the company and amounted to £449 (2021 - £433).
7. Investment income
| Investment income | |||||||
|---|---|---|---|---|---|---|---|
| Unrestricted | Restricted | 2022 | 2021 | ||||
| funds | funds | Total | Total | ||||
| £ | £ | £ | £ | ||||
| Interest from bank accounts | 8 | - | 8 | 40 |
8. Grants received
During the previous financial year a £10,000 coronavirus small business grant was received. No grants were received during the year to 31 March 2022.
9. Direct charitable expenditure
| Unrestricted Restricted funds funds £ £ AGM, meetings and conferences 2,086 - In Essence production costs 35,873 - Printing, postage and stationery 2,286 - Computer costs 6,180 - 46,425 - Fundraising and publicity Unrestricted Restricted funds funds £ £ PR, exhibition and shows 2,321 - |
2022 Total £ 2,086 35,873 2,286 6,180 46,425 2022 Total £ 2,321 |
2021 Total £ 11 33,430 1,182 6,172 |
|---|---|---|
| 40,795 | ||
| 2021 Total £ 9,663 |
10. Fundraising and publicity
Page 12
International Federation of Professional Aromatherapists Company limited by guarantee
Notes to the financial statements for the year ended 31 March 2022
.................... continued
11. Management and administration expenses of the Charity
| Unrestricted Restricted funds funds £ £ Gross salaries and wages 38,808 - Pension costs 449 - Insurance 2,908 - Light and heat 835 - Hire of equipment 1,692 - Rates and water 308 - Repairs and renewals 4,472 - General expenses 987 - Telephone 881 - Accountancy 3,100 - Bookkeeping costs 1,731 - Professional fees 40,495 - Trustees expenditure 427 - Bank charges 5,948 - Loss on exchange - - Depreciation 3,640 - 106,681 - |
2022 Total £ 38,808 449 2,908 835 1,692 308 4,472 987 881 3,100 1,731 40,495 427 5,948 - 3,640 106,681 |
2021 Total £ 37,587 433 2,811 928 1,783 331 1,949 775 874 2,800 1,645 26,235 38 5,947 1,281 3,948 |
|---|---|---|
| 89,365 |
There are no employees receiving a salary in excess of £60,000.
Included within professional fees above is exceptional expenditure incurred during the financial year relating to a legal dispute with a former trustee and several training providers in China. Legal fees in relation to this totalled £20,173 (2021: £12,823). The trustees have taken appropriate legal advice and adopted a strategy to cap any further additional costs
Page 13
International Federation of Professional Aromatherapists Company limited by guarantee
Notes to the financial statements for the year ended 31 March 2022
.................... continued
| Property | Property | Fixtures | Fixtures | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 12. | Tangible fixed assets | Freehold | improve- | and | Computer | |||||||
| property | ments | fittings | equipment | Total | ||||||||
| £ | £ | £ | £ | £ | ||||||||
| Cost | ||||||||||||
| At 1 April 2021 and | ||||||||||||
| at 31 March 2022 | 135,000 | 2,284 | 6,916 | 32,726 | 176,926 | |||||||
| Depreciation | ||||||||||||
| At 1 April 2021 | 37,800 | 2,183 | 6,629 | 29,273 | 75,885 | |||||||
| Charge for the year | 2,700 | 20 | 57 | 863 | 3,640 | |||||||
| At 31 March 2022 | 40,500 | 2,203 | 6,686 | 30,136 | 79,525 | |||||||
| Net book values | ||||||||||||
| At 31 March 2022 | 94,500 | 81 | 230 | 2,590 | 97,401 | |||||||
| At 31 March 2021 | 97,200 | 101 | 287 | 3,453 | 101,041 | |||||||
| 13. | Debtors | 2022 | 2021 | |||||||||
| £ | £ | |||||||||||
| Trade debtors | 3,247 | 7,593 | ||||||||||
| Other debtors | 639 | 179 | ||||||||||
| 3,886 | 7,772 | |||||||||||
| 14. | Creditors: amounts falling due | 2022 | 2021 | |||||||||
| within one year | £ | £ | ||||||||||
| Trade creditors | 2,516 | 5,522 | ||||||||||
| Other creditors | 5,108 | 5,094 | ||||||||||
| 7,624 | 10,616 |
Page 14
International Federation of Professional Aromatherapists Company limited by guarantee
Notes to the financial statements for the year ended 31 March 2022
.................... continued
| Profit | Profit | |||||
|---|---|---|---|---|---|---|
| 15. | Reserves | and loss | ||||
| account | Total | |||||
| £ | £ | |||||
| At 1 April 2021 | 282,011 | 282,011 | ||||
| Loss for the year | (12,491 | ) | (12,491 | ) | ||
| At 31 March 2022 | 269,520 | 269,520 |
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