Registered number: 04973993 Charity number: 1104649
Relate Medway and North Kent Ltd
(A company limited by guarantee)
Unaudited
Trustees' report and financial statements for the year ended 31 March 2021
Relate Medway and North Kent Ltd
(A company limited by guarantee)
Contents
| Page | |
|---|---|
| Reference and administrative details of the Company, its Trustees and advisers | 1 |
| Chairman's statement | 2 |
| Trustees' report | 3 - 14 |
| Independent examiner's report | 15 |
| Statement of financial activities | 16 |
| Balance sheet | 17 |
| Notes to the financial statements | 18 - 27 |
Relate Medway and North Kent Ltd
(A company limited by guarantee)
Reference and administrative details of the Company, its Trustees and advisers for the year ended 31 March 2021
Trustees
D McDonald L Strong
A Street
Company registered number
04973993
Charity registered number
1104649
Registered office
2nd Floor Kingsley House 37-39 Balmoral Road Gillingham Kent ME7 4PF
Medway Council Representative
Cllr W Purdy
Accountants
Kreston Reeves LLP Chartered Accountants Montague Place Quayside Chatham Maritime Chatham Kent ME4 4QU
Page 1
Relate Medway and North Kent Ltd
(A company limited by guarantee)
Chairman's statement for the year ended 31 March 2021
The chairman presents his statement for the year.
This has been another successful but challenging year for Relate Medway and North Kent, with increased activity. The core counselling services have seen a wide range of people across our geographic area and our work with Young people continues to grow and to offer support to people at times of high vulnerability.
During the Covid Pandemic we took the decision to base our core service at our Medway HQ with licences to operate in Swale and Gravesham and Bexley. Maintaining this geographical spread presents some challenges for us but helps reduce barriers for people seeking our help.
I’m proud to say we quickly and successfully transformed from being a primarily face-to- face service delivery organisation to being able to support the Clients entirely online and on the phone.
I can’t stress enough how grateful I am to colleagues, trustees, and volunteers across the Relate MNK family for achieving so much in this period of immense change and uncertainty. Not only have our staff made the huge shift from working face-to-face with clients or in an office environment to working online from their homes, many have also faced adversity in their personal lives such as bereavement, illness and parenting pressures
In 2020/21, we still managed to deliver hundreds of sessions of counselling, Sex Therapy and Mediation despite the challenges of changing our delivery model and reaching people at a time when relationship issues were all too often being ‘swept under the carpet’ due to lockdowns and changed priorities.
Our services continued to deliver impressive outcomes – for example 77% of Adult Relationship Counselling clients said their communication had improved and 72% said their ability to manage conflict had improved
I would like to thank my fellow Trustees for all their support and thoughtful contributions over the past year. We are always looking out for new Trustees to join us.
It has been a privilege to continue to be involved with such a dedicated team of people and I want to extend my thanks and appreciation to all involved over the past year, including our funders and supporters.
Dan McDonald Chairman Date: 1 December 2021
Page 2
Relate Medway and North Kent Ltd
(A company limited by guarantee)
Trustees' report for the year ended 31 March 2021
The Trustees present their annual report together with the audited financial statements of the Charity for the year from 1 April 2020 to 31 March 2021. 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 Charitable Company comply with the current statutory requirements, the requirements of the Charitable Company'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).
Since the Company 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 company is a charitable organisation providing relationship counselling to adults, families, children, and young people for the public benefit.
The objects of the charity as set out in the governing document are:
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To educate the public concerning the benefits of secure couple relationships, marriage and family life in order to improve the emotional, sexual and spiritual well-being of individuals, which is derived from committed relationships.
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To provide counselling, advice, education, guidance and relief to adults and/ or children in relation to any aspect of contemporary life or work which may prejudice their physical or mental wellbeing, and influence, either directly or indirectly, their present or future family or couple relationship.
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To seek to enhance the good health, both mental and physical of adults and children by increasing awareness of the benefits of committed relationships. Furthermore working to prevent poverty, hardship and distress caused by breakdown of such relationships.
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The trustees have complied with section 17(5) of the Charities Act 2011 to give due regard to the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities.
Relate's purpose is to help people to make those personal changes which enable them to engage in committed and loving relationships for the benefit of themselves, their family and society.
Relate's Vision is of a future in which healthy relationships are actively promoted as the basis of a thriving society.
Our mission is to develop and support healthy relationships by:
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Helping couples, families and individuals to make relationships work better
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Delivering inclusive, high-quality services that are relevant at every stage of life
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Helping both the public and policymakers to improve their understanding of relationships and what makes them flourish.
Page 3
Relate Medway and North Kent Ltd
(A company limited by guarantee)
Trustees' report (continued) for the year ended 31 March 2021
Objectives and activities (continued)
Our values
Be Human
We respect everyone and value all relationships. We listen and support people to make positive changes in their lives.
Be Connected
We’re in touch with the world around us and use evidence to explain why relationships matter. We collaborate to provide great services for all our communities.
Be Smart
We keep things simple and focus on what works. We put our clients first and maximise every penny for their benefit.
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)'.
b. Activities undertaken to achieve objectives
How we help: Our core services
Relationship counselling: helping couples and individuals to respond to issues arising from their relationships. Our counsellors help people discuss their feelings, attitudes and expectations, and offer assistance with communication and problem solving. We aim to empower clients by increasing their understanding so that they can go on to make choices about how they can manage their relationships.
Psychosexual (Sex) therapy: an assessment and treatment programme which enables our clients to address the physical, emotional and psychological issues associated with sex. This usually means designing a sequence of tasks and exercises for a couple or an individual to complete at home .The sex therapist discusses progress at each session and works at the client's own pace.
Family Counselling: to help family members of all ages, situations and dynamics in resolving difficulties and concerns in their relationships with one another. We support clients by increasing their understanding of each other's needs and improving communication, both within the couple relationship and across generations.
Children and Young People's counselling: helps children and young people {5-25 year olds) explore and develop coping strategies for issues such as family breakdown, bullying and peer relationships, bereavement, the formation of new families or the absence of a family member in their life.
Education and Learning: to provide people with the knowledge and skills needed for personal and professional development. This is part of our preventative work, to ensure we are helping people to boost or maintain their relationships as opposed to just helping when things get tough.
Quality Assurance and accreditation
Relate Medway and North Kent counselling and psychotherapy services are BACP accredited (108426) and subject to its Ethical Framework for Good Practice in counselling and psychotherapy and professional conduct procedure.
We are in our third five-year term of accredited services status and are subject to annual monitoring. In addition to BACP Relate MTB uses PQASSO (Practical Quality Assurance System for Small Organisations) as a quality assurance standard.
Page 4
Relate Medway and North Kent Ltd
(A company limited by guarantee)
Trustees' report (continued) for the year ended 31 March 2021
Objectives and activities (continued)
Psychosexual therapy is covered by COSRT (College of Sexual and Relationship Therapists) Code of Ethics and Principles of Good Practice.
Family counselling is covered by the AFT (The Association for Family Therapy and Systemic Practice in the UK) Code of Ethics and Practice.
All Relate Medway and North Kent personnel must comply with the Relate Code of Ethics and Practice and Relate's practice policies and guidance, which both complement the external codes and set specific organisational standards for ethical working.
Achievements and performance
a. Review of activities
Relate Medway & North Kent :
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Delivered 2600 counselling hours
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Supporting 1050 People
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1200 Registrations
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366 assessment appointments
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Ongoing appointments with couples and individuals
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Newly accessible family counselling sessions
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Individual structured interviews (domestic violence / abuse intervention assessments)
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300 Rowhill sessions supporting young vulnerable children
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Set up new online triage service
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Set up new Mental Health support services during Covid-19
A team of 8 Relate counsellors work across our Medway and North Kent locations. Our primary Headquarters is in Gillingham.
We deliver services across the local authority areas of:
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Medway
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Dartford
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Gravesham
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Bexley
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Swale
We only continue to be able to offer services at reduced rates to people in distress thanks to trusts, foundations and donors who financially support our Bursary Funding Scheme. A number of our clients are able to meet the cost of counselling but many are not. These vita l supporters are listed in full at the end of this report.
Relate Medway & North Kent maintains contracted commissioned work alongside the self-referring client work. This work is detailed in the following summary of our work this year.
Page 5
Relate Medway and North Kent Ltd
(A company limited by guarantee)
Trustees' report (continued) for the year ended 31 March 2021
Achievements and performance (continued)
IAPT (Improving Access to Psychological Therapies) - Couple Therapy for Depression
IAPT is run by the NHS in England, and provides NICE approved evidence based therapies for people with anxiety or depression. Couple Therapy for Depression {CTD} is a type of talking therapy developed to help people suffering from depression and anxiety.
We receive referrals from Healthy Minds after their initial assessment considers CTD to be the most appropriate therapy for the patient and their partner.
The therapy is for up to 20 sessions and is for people who have a regular partner and where the relationship may contribute to the development or maintenance of their depression and distress.
Aim of IAPT Couple Therapy for Depression (CTD)
Couple Therapy for Depression aims to improve the overall quality of a couple's relationship, as poor relationship quality is known to be a precipitating factor in depression. Couple therapy can help people with their relationship and emotional difficulties that sometimes flow from problems between partners.
Training for IAPT CTD
IAPT recognises two forms of couple therapy and supports training courses in each. One closely follows the behavioural couple therapy model (Don Baucom). The other is an integrative- behavioural evidence based treatment (Tavistock Relationships}. Relate MNK have practitioners qualified in both therapies.
Criteria for CTD
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Mild to moderate depression in one/both partners
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Relationship distress identified
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No domestic abuse or other safety issues identified including suicidal behaviours.
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Not for people who are not misusing alcohol or illicit drugs to an extent that it affects their ability to undertake or make use of talking treatment
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Not suitable for people who have a personality diagnosis that is active or other severe psychopathologies.
The Therapeutic Approach
CTD focuses on the relational aspects of depression and works on the precipitating and maintaining elements of the couple relationship which are known to have a direct effect on the incidence of depression, in order to reduce stress and increase support within the couple:-
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Improving communication
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Coping with stress
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Managing feelings
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Changing behaviour
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Solving problems
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Promoting acceptance
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Revising perceptions
The model allows for joint and individual assessment sessions and a joint formulation session, followed by ongoing sessions up to a total of 20. It is delivered at Step 3 level for patients with mild to moderate depression - a high intensity intervention, in accordance with NICE and IAPT guidelines.
Page 6
Relate Medway and North Kent Ltd
(A company limited by guarantee)
Trustees' report (continued) for the year ended 31 March 2021
Achievements and performance (continued)
Continuing Professional Development for Relate MNK counsellors in 2020-21
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Mental Illness and its treatment
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Conversations around Intimacy
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Child Sexual Exploitation
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Understanding Stepfamilies: A practical guide for professionals working with blended families
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Online Relate Learning modules available - Child Protection and Safeguarding (Level 1), Mental Health Awareness, Domestic Abuse and Violence, Suicidal Risk and support. Client informed feedback, Substance and Misuse, Gender and Sexual Diversity, Bereavement and Loss, Disordered Personalities, Counselling with a Sexual Focus, Emotionally Focused Therapy.
Fundraising
Detailed data underpins our ability to demonstrate to new, potential and existing funders the difference their donations make in specific geographical communities.
We are grateful for the continued support of most of our local authorities who recognise the contribution Relate MNK makes to community cohesion and resilience, and to the well-being of individuals.
We are developing detailed 'projects' to meet the increasingly specific requirements of potential funders for stand-alone projects rather than general funding pots.
Our plans to raise awareness of our services in our communities have progressed with the production of new postcard-style fliers, posters and a successful bid for funding for a Mobile Community Information stand.
We continue to look at new potential sources for grants and donations and will be grateful for any suggestions from Trustees.
Publicity
We are grateful for the support of our local media in covering what has been an informative year – We have a regular slot in the Medway Messenger and our platforms on Facebook and twitter have more potential but soak up resource.
Acknowledgements
The Trustees thank the counsellors, clinical supervisors, appointment staff, evening receptionists, and volunteers who work together for the benefit of our local communities. Thank you to the Relate RMK counsellors during 2020-2021.
Sincere thanks to the local authorities, trusts, organisations and individuals who have financially supported us in 2020-2021:
Albert Hunt Trust The National Lottery Community Fund Coyler Fergussion Henry Smith Kent Community Foundation Medway Council Awards for All Tory Family Trust John Swire Foundation
Page 7
Relate Medway and North Kent Ltd
(A company limited by guarantee)
Trustees' report (continued) for the year ended 31 March 2021
Achievements and performance (continued)
Client feedback 2020-2021 Summary Report
The figures speak for themselves - Relate Medway & North Kent (MNK) supported 1050 people in 2020-2021, providing 2600 hours of high quality, professional relationship counselling. But the personal stories and testimonials behind the figures are even more compelling.
Being able to talk about our emotions, insecurities and worries in a safe environment is something we should be able to take for granted, but Relate MNK's clients highly value being able to talk to a skilled counsellor and to be heard without judgement, finding it vital in being able to address relationship difficulties and to move forward.
In Relate MNK's 2020-2021 feedback report 'The Difference We Make' - a compilation of results from post counselling questionnaires clients –most clients said they were able to manage conflict 'much better' or 'a little better' and many reported improvements in rows and arguments.
Testimonials from local clients included:
Page 8
Relate Medway and North Kent Ltd
(A company limited by guarantee)
Trustees' report (continued) for the year ended 31 March 2021
Achievements and performance (continued)
Clients who said communication was an issue reported an improvement after counselling with comments including:
'Relate has been very useful in helping make very difficult decisions that have been put off for a long time'
'It's been really helpful, being able to talk and not feel judged about the way you feel'
Many people do not realise the wide range of counselling services that Relate MNK offers, the wide range of age groups we serve and the extensive benefits in teaching life-long relationship skills.
Financial review
a. Going concern
Despite the events brought on by the Corona virus, after making appropriate enquiries, the trustees have a reasonable expectation that the company 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 consider that reserves, which are deemed freely available for any of the charity's Objectives, should best be used to provide a solid business base for the Company. Allowance have been made for the following factors in determining the current level of reserves.
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The Charity rents its offices from Medway CAB, paying a monthly rental fee as agreed.
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As the receipt of grants and contracted income can occasionally be later than planned, there is a need to provide short-term financial cover, to allow for the payment of on-going costs, until grants are eventually received.
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The future of the Charity is partly dependent upon sufficient funds being provided by local and national government. As these providers of income are subject to the vagaries of government spending and the general economic climate, it is possible that the cash flow could slow down significantly, or dry up totally, dependent upon the competing calls on limited resources. In the case of closure, it is deemed prudent to allow for the following factors.
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I. Statutory redundancy of the staff.
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ii. Payment of costs on premises, and associated items until the lease or license can be assigned, or the lease expires, whichever is the sooner.
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iii. Payment of outstanding liabilities.
The Reserve Policy is reviewed by the Trustees at least annually. The Trustees can, at any future date, determine that a part of the reserves can be utilised for a specific purpose, in which case those funds would be treated as designated funds.
Restricted Funds
The Charity occasionally receives Grants from Corporate Bodies and other Charitable Trusts for specific projects. The use of funds outside the terms of the contract is prohibited, with the balance of funds to be returned on completion of the contract.
Current restricted Funds stand at £29,061 and will be held to meet any unanticipated expenses associated with the specific projects.
Page 9
Relate Medway and North Kent Ltd
(A company limited by guarantee)
Trustees' report (continued) for the year ended 31 March 2021
Unrestricted Funds
The Trustees believe that Relate Medway & North Kent should hold financial reserves in order to ensure that the charity can continue to operate and meet the needs of clients of unforeseen and potentially financially damaging circumstances arising. Current Unrestricted funds stand at £4,500.
We are working tirelessly to achieve an overall Reserves figure of £50,000 this will involve expanding the Service, and increasing our counselling sessions as well as Outreaches in the Community.
The Trustees consider that it would be prudent to set aside an amount equivalent to three months operating expenditure to meet the cost of contractual arrangements should there be a short term break in funding; this is estimated at £10,000.
Designated Funds
In addition, unrestricted funds have been designated to the following purposes:
Equipment Reserve
The Board considers that there is a need for a reserve to be created to support the ongoing replacement of the IT infrastructure at Medway Volunteer Centre. The reserve to stand at £2,500.
Contractual Commitment reserve
At present, the Board does not consider that there is a need to set aside funds for redundancy. However, the Board to create a reserve to cover disciplinary and/or grievance at £2,000.
Our major source of funding has been from Medway Council in addition to our role as a Project Medway partner. We have also received grants from a number of charitable organisations.
The major risks which the charity is subject to are regularly reviewed by the trustees and, as a consequence, systems are in place to mitigate those risks. A major risk is considered to be that of continued funding, and in order to reduce the impact of any such reduction, it is still the intention of the trustees to double the operational reserve. At this level, the trustees feel that they would be able to continue the current activities of the charity in the event of a significant fall in the level of funding for a period of approximately six calendar months; this would then provide sufficient time to consider how the funding would be replaced, or services changed.
Premises
The Board considers that there is no need for a reserve at this this time.
Review of reserves policy
Reserves are monitored at every quarterly meeting of the Finance and Resources Sub Committee, the Committee will ensure that reserves are not unduly affected by unanticipated expenses and are sufficient for the needs identified in this reserves policy.
This reserves policy is monitored by the Board of Trustees annually when the Audited Accounts become available, or more frequently as circumstances dictate.
Principal Funding
Our principal funders are Medway Council from whom we receive our core funding together with funds for additional specific projects and the legal Service Commission who contract with us to provide free legal advice to local residents.
COVID-19 has had an adverse impact on the Centre and we expect this to continue into next year. We’ve had to stop all Counselling during the lockdown and this will impact on our Finances into 2021.
We have introduced virtual Counselling sessions across Medway during 2021 as we feel there will be an increased need for this Service during the pandemic.
We have applied for local Government Grants to assist us with keeping the Centre open.
Page 10
Relate Medway and North Kent Ltd (A company limited by guarantee)
Trustees' report (continued) for the year ended 31 March 2021
Relate Medway & North Kent – Who benefits:
Young People
By improving the relationship skills of people of all ages and backgrounds, including their listening skills, we improve their skills in communicating with and building relationships with people across communities. Our counselling, including for children and young adults, teaches skills, which has a life-long impact, enables amicable co-parenting and improves wider relationships.
Relationships for all ages
There is no upper age restriction on our services and our couples and families counselling benefits children of all ages.
Mental health & well-being
We work in close collaboration with local mental health services and aim to offer early intervention to tackle growing problems that may escalate if not dealt with appropriately and timely. One client says: "I have really benefited from the sessions and feel much more mentally resilient to cope with life challenges." We also provide specialist counselling for people with life- limiting conditions and their families /carers.
People suffering abuse
Counsellors are trained to identify victims of domestic violence and sexual abuse, including children, and liaise with specialist agencies to make referrals.
Disadvantaged & deprived people & families
We see the impact of economic stress on relationships and families, and our Bursary Funding Scheme ensures that clients have access to professional counselling regardless of their ability to pay.
People with long-term & life-limiting conditions & carers
Our counsellors are trained in specific skills to provide relationship support to patients and family members who are carers and/ or whose relationship faces challenges and changes in the face of a medical diagnosis, such as cancer.
Drug and alcohol
Counsellors liaise with specialist agencies to refer people whose relationships are affected by drug or alcohol addiction.
Page 11
Relate Medway and North Kent Ltd
(A company limited by guarantee)
Trustees' report (continued) for the year ended 31 March 2021
Structure, governance and management
a. Constitution
The charity is constituted as a company limited by guarantee, not having a share capital. It is governed by its Memorandum and Articles of Association adopted on 12/09/ 2003, as amended by Special Resolution of the members on 23 October 2009.
The charity is a constitute society of Relate Limited and as such is bound by the Memorandum & Articles of Association of Relate Limited and the Relate Federation Agreement. Relate Limited supports all centres in England, Wales and Northern Ireland. It provides policy direction, legal advice, quality systems and resources, research information, practice helpline, and professional supervision, and training of counsellors.
The Board of Trustees is the governing body of Relate Medway and North Kent. It is responsible for:
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Developing and maintaining the structure for Relate Medway & North Kent to deliver against its charitable objects
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Governing Relate Medway & North Kent in line with its vision, aims and charitable objectives and to provide overall policy direction
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The overall governance and strategic direction of the charity, developing its aims, objectives and goals in accordance with the Articles of Association, legal requirements and regulatory guidelines
The Board is collectively responsible for promoting the success of the Charity by directing and supervising the Charity's affairs. Its role is to provide leadership within a framework of prudent and effective controls, which enable risk to be assessed and managed. The Board of Trustees delegates the day-to-day responsibility of the management and control of the Charity and its funds to the Centre Director.
All expenditure is approved by the Board of Trustees and requires that full accounting records be maintained with monthly financial and operating reports to ensure that all criteria for spending the funds of the charity are fully met. The Executive Committee reviews the latest management accounts at each meeting. The Executive Committee meets a minimum of four times a year on a quarterly basis.
Sub-groups are established on a short-term basis where particularly high risk or high importance projects require closer oversight and scrutiny. {E.g. Strategic sub-group, Finance sub-group) These groups report to the Board of Trustees
b. Methods of appointment or election of Trustees
As set out in the Articles of Association the Trustees may appoint any qualifying person to become a trustee, any person appointed shall hold office until the following Annual General Meeting and shall then be eligible for reelection. All Relate MNK Trustees give their time voluntarily and receive no benefits from the charity.
Page 12
Relate Medway and North Kent Ltd
(A company limited by guarantee)
Trustees' report (continued) for the year ended 31 March 2021
Structure, governance and management (continued)
c. Risk management
The Trustees are responsible for the management of the risks faced by the Charity. Sub committees are formed to deal with risk and assessment.
We assess and regularly review the major risks to which we are exposed by means of an operational risk register, which is regularly reviewed by the management team and Trustees .We are satisfied that systems are in place to mitigate our exposure.
The Trustees are monitoring the risks, which include:
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Loss of significant income from funding bodies (i.e. Local authorities, NHS, Trusts) and lack of ability to grow and generate diverse unrestricted income
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Being unable to provide sufficient counsellors to match growth in service output
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Unplanned and rapid changes among our small management and administrative staff team
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Further reduction in what our clients are able to afford to pay for counselling, against increasing costs
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Ensuring that momentum and guidance provided by the Board of Trustees is maintained
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A reduction in the support and strategy provided by Relate Limited
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Not having the right people with the right skills, attitudes and behaviours to deliver the strategy across the whole organization
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Accommodation changes due to leases ending
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Growing competition from other counselling providers
The Business Plan and Strategic Plan address these issues and try to keep a step ahead in finding solutions to minimise the risk to the organisation. A key element in our management of financial risk is the setting and regular review of the reserves policy (see Financial Review).
d. Induction and training for Trustees
New Trustees are sought with regard to any specialist skills required. New Trustees are briefed on their legal obligations under company and charity law, the Memorandum and Articles of Association, the Committee and the decision-making process, recent performance and strategic plans. They are encouraged to attend appropriate training and to spend time at the centre. Feedback about the charity’s performance and suggest ions for improvement and change are welcomed.
Page 13
Relate Medway and North Kent Ltd
(A company limited by guarantee)
Trustees' report (continued) for the year ended 31 March 2021
Plans for future periods
The financial year was very challenging due to the COVID-19 pandemic. We have continued to worked hard to change the way we work to mitigate against the risks and challenges faced by the charity.
FUTURE PLANS
Our Main focus in the coming year is Sustainability – Covid-19 has brought us additional long term challenges which we hope to overcome as we navigate through the year. We continue to work with our Funders and Partners to ensure our Long term future is secure so we can continue to provide the much needed Services to the community in Medway.
Our Priorities for next year include:
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Move to an online Services due to the Pandemic
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Extend our DV Helpline during the pandemic
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Move towards centralizing our Services to one head office base
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Ensure the safety of our team during the pandemic and that our offices are COVID secure
Relate Medway & North Kent is very grateful to all who continue to be interested in the work of the Centre and is most appreciative of the financial support it has received this year from the Local Community, Sundry donations from Local Residents, Hands Volunteers and grateful Clients.
Statement of Trustees' responsibilities
The Trustees (who are also the directors of the Company 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 year. 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 Company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these 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 of the Charities SORP (FRS 102);
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the members of the board of Trustees on 1 December 2021 and signed on their behalf by:
D McDonald
Page 14
Relate Medway and North Kent Ltd
(A company limited by guarantee)
Independent examiner's report
for the year ended 31 March 2021
Independent examiner's report to the Trustees of Relate Medway and North Kent Ltd ('the Company')
I report to the charity Trustees on my examination of the accounts of the Company for the year ended 31 March 2021.
Responsibilities and basis of report
As the Trustees of the Company (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 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 Company'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:
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accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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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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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 Company'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 Company'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 Company and the Company's Trustees as a body, for my work or for this report.
Signed: Dated: 2 December 2021 S M Robinson BA FCA FCIE DChA MCMI
Kreston Reeves LLP Chartered Accountants Chatham Maritime
Page 15
Relate Medway and North Kent Ltd
(A company limited by guarantee)
Statement of financial activities (incorporating income and expenditure account) for the year ended 31 March 2021
| Note Income from: Donations and legacies 2 Charitable activities 3 Total income Expenditure on: Charitable activities Total expenditure Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Restricted funds 2021 £ 100,500 - 100,500 75,139 75,139 25,361 3,700 25,361 29,061 |
Unrestricted funds 2021 £ - 90,274 90,274 60,770 60,770 29,504 14,884 29,504 44,388 |
Total funds 2021 £ 100,500 90,274 190,774 135,909 135,909 54,865 18,584 54,865 73,449 |
Total funds 2020 £ 31,228 89,753 |
|---|---|---|---|---|
| 120,981 | ||||
| 119,313 | ||||
| 119,313 | ||||
| 1,668 | ||||
| 16,916 1,668 |
||||
| 18,584 |
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 18 to 27 form part of these financial statements.
Page 16
Relate Medway and North Kent Ltd
(A company limited by guarantee) Registered number: 04973993
Balance sheet as at 31 March 2021
| Note Fixed assets Tangible assets 8 Current assets Debtors 9 Cash at bank and in hand Creditors: amounts falling due within one year 10 Net current assets Total assets less current liabilities Total net assets Charity funds Restricted funds 11 Unrestricted funds 11 Total funds |
166 75,556 75,722 (3,030) |
2021 £ 757 757 72,692 73,449 73,449 29,061 44,388 73,449 |
5,362 15,641 21,003 (3,458) |
2020 £ 1,039 |
|---|---|---|---|---|
| 1,039 17,545 |
||||
| 18,584 | ||||
| 18,584 | ||||
| 3,700 14,884 |
||||
| 18,584 |
The Company was entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the company 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 on 01 December 2021 and signed on their behalf by:
D McDonald
The notes on pages 18 to 27 form part of these financial statements.
Page 17
Relate Medway and North Kent Ltd
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2021
1. Accounting policies
1.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Relate Medway and North Kent Ltd 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.
1.2 Company status
The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.
1.3 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 Company and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company 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.
1.4 Income
All income is recognised once the Company 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.
1.5 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. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Page 18
Relate Medway and North Kent Ltd
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2021
1. Accounting policies (continued)
1.5 Expenditure (continued)
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
1.6 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.
Whilst the impact of the COVID-19 pandemic has been assessed by the Trustees, so far as is reasonably possible, due to its unprecedented impact on the worldwide economy it is difficult to evaluate with any certainty the potential outcomes on the Charity's future activities. However, taking into consideration the Charity's level of reserves, the Trustees believe that the Charity will be able to continue in operational existence for the foreseeable future.
1.7 Tangible fixed assets and depreciation
A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of financial activities incorporating income and expenditure account.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.
Depreciation is provided on the following basis:
- Fixtures and fittings 20% reducing balance
1.8 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
1.9 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.
Page 19
Relate Medway and North Kent Ltd (A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2021
1. Accounting policies (continued)
1.10 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.
1.11 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 Company 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 in the Statement of financial activities as a finance cost.
1.12 Financial instruments
The 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 measured at amortised cost using the effective interest method.
1.13 Pensions
The Company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Company to the fund in respect of the year.
2. Income from donations and legacies
| Grants Total 2020 |
Restricted funds 2021 £ 100,500 31,228 |
Total funds 2021 £ 100,500 31,228 |
Total funds 2020 £ 31,228 |
|---|---|---|---|
Page 20
Relate Medway and North Kent Ltd
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2021
3. Income from charitable activities
| Fees receivable Total 2020 |
Unrestricted funds 2021 £ 90,274 89,753 |
Total funds 2021 £ 90,274 89,753 |
Total funds 2020 £ 89,753 |
|---|---|---|---|
4. Expenditure on charitable activities
| Wages Employers National Insurance Employers Pension Contributions Premises costs Professional fees and insurance Administration costs Depreciation - fixtures & fittings Sundries COVID-19 related costs Counselling costs Staff training and travel Trustee Expenses Independent examiner's fee Total 2020 |
Restricted funds 2021 £ 16,774 - - 11,384 3,063 8,729 - 1,738 2,904 29,324 - 353 870 75,139 32,467 |
Unrestricted funds 2021 £ 14,938 1,845 117 13,855 3,000 8,078 282 5,933 9,910 1,175 169 250 1,218 60,770 86,846 |
Total funds 2021 £ 31,712 1,845 117 25,239 6,063 16,807 282 7,671 12,814 30,499 169 603 2,088 135,909 119,313 |
Total funds 2020 £ 41,035 2,085 300 21,314 10,780 15,790 306 469 - 24,132 960 42 2,100 |
|---|---|---|---|---|
| 119,313 | ||||
5. Auditors' remuneration
The Independent Examiner's remuneration amounts to an Independent Examination fee of £2,088 (2020 - £1,740).
Page 21
Relate Medway and North Kent Ltd
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2021
6. Staff costs
| Wages and salaries Social security costs Contribution to defined contribution pension schemes |
2021 £ 31,712 1,845 117 33,674 |
2020 £ 41,035 2,085 300 |
|---|---|---|
| 43,420 |
The average number of persons employed by the Company during the year was as follows:
| 2021 | 2020 |
|---|---|
| No. | No. |
| 4 | 5 |
No employee received remuneration amounting to more than £60,000 in either year.
The management of the charity was undertaken by Medway Districts Citizen's Advice Bureau, therefore key management personnel was £Nil (2020: £Nil).
7. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2020 - £NIL).
During the year ended 31 March 2021, expenses totalling £603 were reimbursed or paid directly to 1 Trustee (2020 - £42 to 1 Trustee) for expenses relating to conferences, training, refreshments and sundry items.
8. Tangible fixed assets
| Cost or valuation At 1 April 2020 At 31 March 2021 Depreciation At 1 April 2020 Charge for the year At 31 March 2021 |
Fixtures and fittings £ 2,036 |
|---|---|
| 2,036 | |
| 997 282 |
|
| 1,279 |
Page 22
Relate Medway and North Kent Ltd
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2021
8. Tangible fixed assets (continued)
Net book value At 31 March 2021 At 31 March 2020 |
Fixtures and fittings £ 757 |
|---|---|
| 1,039 |
9. Debtors
| Due within one year Trade debtors Prepayments and accrued income |
2021 £ - 166 166 |
2020 £ 196 5,166 |
|---|---|---|
| 5,362 |
10. Creditors: Amounts falling due within one year
| Trade creditors Other taxation and social security Accruals and deferred income |
2021 £ 414 528 2,088 3,030 |
2020 £ 179 472 2,807 |
|---|---|---|
| 3,458 |
Page 23
Relate Medway and North Kent Ltd
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2021
11. Statement of funds
Statement of funds - current year
| Unrestricted funds Designated funds Equipment reserve Contractual equipment reserve General funds General Funds Total Unrestricted funds Restricted funds Henry Smith National Lottery Fund Albert Hunt Trust Kent Community Foundation (KFC) Colyer Fergusson Henry Oldfield Trust Awards for All John Swire Foundation Tory Family Trust Medway Council Business Grants Total of funds |
Balance at 1 April 2020 £ 2,500 2,000 4,500 10,384 14,884 - - - - 2,500 1,200 - - - - 3,700 18,584 |
Income £ - - - 90,274 90,274 9,000 47,000 2,000 7,000 10,000 - 10,000 5,000 500 10,000 100,500 190,774 |
Expenditure £ - - - (60,770) (60,770) (4,689) (35,000) (2,000) (7,000) (3,500) (1,200) (8,750) (5,000) (500) (7,500) (75,139) (135,909) |
Balance at 31 March 2021 £ 2,500 2,000 |
|---|---|---|---|---|
| 4,500 | ||||
| 39,888 44,388 |
||||
| 4,311 12,000 - - 9,000 - 1,250 - - 2,500 |
||||
| 29,061 | ||||
| 73,449 |
Page 24
Relate Medway and North Kent Ltd
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2021
11. Statement of funds (continued)
Statement of funds - prior year
| Unrestricted funds Designated funds Equipment reserve Contractrual equipment reserve General funds General Funds Total Unrestricted funds Restricted funds Big Lottery fund Henry Smith Red Hill Trust YPC Whitehead Monkton National Lottery Fund Albert Hunt Trust Kent Community Foundation (KFC) Colyer Fergusson Henry Oldfield Trust Total of funds |
Balance at 1 April 2019 £ 2,500 2,000 4,500 7,477 11,977 1,992 1,405 1,542 - - - - - - 4,939 16,916 |
Income £ - - - 89,753 - - - - 750 9,978 2,000 1,500 12,000 5,000 31,228 31,228 |
Expenditure £ - - - (86,846) (86,846) (1,992) (1,405) (1,542) (750) (9,978) (2,000) (1,500) (9,500) (3,800) (32,467) (119,313) |
Balance at 31 March 2020 £ 2,500 2,000 |
|---|---|---|---|---|
| 4,500 | ||||
| 10,384 14,884 |
||||
| - - - - - - - 2,500 1,200 |
||||
| 3,700 | ||||
| 18,584 |
Page 25
Relate Medway and North Kent Ltd
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2021
12. Summary of funds
Summary of funds - current year
| Designated funds General funds Restricted funds Summary of funds - prior year Designated funds General funds Restricted funds |
Balance at 1 April 2020 £ 4,500 10,384 3,700 18,584 Balance at 1 April 2019 £ 4,500 7,477 4,939 16,916 |
Income £ - 90,274 100,500 190,774 Income £ - 89,753 31,228 120,981 |
Expenditure £ - (60,770) (75,139) (135,909) Expenditure £ - (86,846) (32,467) (119,313) |
Balance at 31 March 2021 £ 4,500 39,888 29,061 |
|---|---|---|---|---|
| 73,449 | ||||
| Balance at 31 March 2020 £ 4,500 10,384 3,700 |
||||
| 18,584 |
Designated funds
Equipment reserve - To support the ongoing replacement of the IT infrastructure. Contractual commitment reserve - To cover any future disciplinary and/or grievance.
Restricted funds
Albert Hunt Trust - For counselling young persons.
Big Lottery Fun d - Young Persons Counselling - this is targeted at vulnerable young people in the community
Henry Smith - Young Persons Counselling - this is targeted at vulnerable young people in the community Kent Community Foundation - For counselling young persons
The Mrs Smith and Mount Trust - For counselling young persons.
Redhill Trust - For counselling young persons
Oldfield Charitable Trust - For counselling young persons
St James's Place Foundation - For counselling young persons at Rowhill School Whitehead Monckton - enabling us to deliver two hours counselling
Colyer-Fergusson - to deliver further counselling to prisoners at HMP Rochester to ensure stronger family relationships and more security for the children of those relationships supported and conflict in the family home is alleviated.
Awards for All - to revamp the service delivery for Medway Volunteer Centre to enable us to deal with the increased demand to ensure safety precautions and the increased demand is met in the community John Swire Foundation - towards delivering counselling to domestic violence abuse victims in the community
Tory Family Trust - towards delivering counselling to domestic violence victims in the community Medway Council Business Grants - discretionay grant to cover costs such as office rental, insurance and other fixed costs during the COVID-19 pandemic when the offices were shut to the public.
Page 26
Relate Medway and North Kent Ltd (A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2021
13. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Tangible fixed assets Current assets Creditors due within one year Total |
Restricted funds 2021 £ - 29,061 - 29,061 |
Unrestricted funds 2021 £ 757 46,661 (3,030) 44,388 |
Total funds 2021 £ 757 75,722 (3,030) |
|---|---|---|---|
| 73,449 |
Analysis of net assets between funds - prior year
| Tangible fixed assets Current assets Creditors due within one year Total |
Restricted funds 2020 £ - 3,700 - 3,700 |
Unrestricted funds 2020 £ 1,039 17,303 (3,458) 14,884 |
Total funds 2020 £ 1,039 21,003 (3,458) |
|---|---|---|---|
| 18,584 |
14. Pension commitments
The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £117 (2020 - £300).
15. Related party transactions
Medway District Citizens Advice Bureau, a charitable company of which Dan McDonald is Chief Executive Officer and Company Secretary, charged £11,388 (2020 - £9,678) for reimbursement of expenses (I.T, office costs and salaries) incurred by Medway District Citizen's Advice Bureau on Relate's behalf. Rent and service charges totalling £25,221 (2020 - £19,592) were invoiced by Medway District Citizen's Advice Bureau to Relate Medway and North Kent Limited during the year. Additional Recharges of £14,239 were made from Medway CAB for making offices COVID Safe, Security and access to online Counselling for Counsellors and other Misc. There was no balance outstanding at the year end.
D McDonald (Trustee) paid for charitable expenditure personally and was later reimbursed and total of £4,403 during the year (2020 - £Nil).
Page 27