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2023-03-31-accounts

Charity number: 1110768 Company number: 04980776 (England and Wales)

Relate Derby And Southern Derbyshire

Report of the Trustees and Unaudited Financial Statements

For the year ended 31 March 2023

Relate Derby And Southern Derbyshire Contents Page For the year ended 31 March 2023

Report of the Trustees 1 to 6
Independent Examiner's Report to the Trustees 7
Statement of Financial Activities 8
Statement of Financial Position 9
Notes to the Financial Statements 10 to 16
Detailed Statement of Financial Activities 17 to 18

Relate Derby And Southern Derbyshire Report of the Trustees

For the year ended 31 March 2023

The Trustees, who are also directors for the purposes of company law, have pleasure in presenting their report and the financial statements for the charitable company for the year ended 31 March 2023. The Trustees have adopted the provisions of 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 the Republic of Ireland (FRS 102) (effective 1 January 2019).

Chair's report

We are an important local provider of counselling services providing, counselling, information, and support to individuals, couples, children, and families across a regardless of age, ethnicity, cultural background, sexual orientation, gender, or disability. As a Federated Charity we work closely with National Relate in our mutual vision where healthy relationships are actively promoted as the heart of a thriving society.

In 2022/23 we very reluctantly set a further year of deficit budget. Our reserves enabled us to do this, and we saw no alternative, in the light of the cessation of some of the non-recurrent support and contracts, and our continued difficulty in retaining and recruiting staff. We were able to deliver an improved outcome versus our plan, but we still have to post a significant in year deficit. In reality the impact of the pandemic has had a longer, deeper, and more complex impact on our services and the environment in which we operate than we had envisaged. This year has proved to be as challenging. Despite our best efforts our retention difficulties remained which, despite the recruitment of new staff, has undermined our efforts to rebuild our capacity and availability for new clients. We are not alone in this with evidence that many small counselling non-for-profit organisations have been struggling to recover to their former level of operations and financial health post pandemic and are being further impacted by the cost-of-living crisis.

In 2022 we saw further changes to the senior leadership team which impacted the pace of change at which we could develop, but were delighted to appoint Lisa Stevenson as our new Managing Director in March 2022. In May 2022 we saw the retirement of our senior clinical supervisor, Peter Saddington who had worked with us for many years and his experience and support has been sorely missed. Despite our best efforts we have been unable to recruit to this important role as yet.

In June 2022 we were able to hold our first Centre Day for several years, it was great to get together and reconnect after so

long working remotely.

This year also saw the resignation of Olwyn Mills who had been a very active and committed Trustee and we were pleased to appoint two new Trustees in December 2022. Our Trustees are voluntary roles, and we were lucky to benefit from their experience and expertise.

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objectives of the charity are to:

Statement on public benefit

We have referred to the guidance contained in the Charity Commissions general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set.

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Relate Derby And Southern Derbyshire Report of the Trustees Continued For the year ended 31 March 2023

Volunteers

We remain incredibly grateful to our staff and volunteers, not just for the exceptional skills, qualifications, and experience that they bring, but also for their continued commitment to Relate's work. We particularly wish to thank our entire team for their support, positivity, and commitment as we have returned to providing face-to-face counselling, giving the clients the choice of how they receive their counselling.

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Relate Derby And Southern Derbyshire Report of the Trustees Continued For the year ended 31 March 2023

ACHIEVEMENTS AND PERFORMANCE

Significant activities

Throughout 2022/23 our priorities focused on recovery to pre-pandemic operating levels and developing our services, our priorities included:

·Rebuilding our workforce and reviewing our reward package for our staff to improve the retention and recruitment of staff ·Improving access to our services by reducing waiting times and providing both remote and face-to-face counselling

·Improving our financial reporting, and assuring resilience of our financial support

·Improving our financial management and reducing our aged debtors

·Continued development and progress with recruitment of counsellors, including trainees

·Reducing our overheads by improving the utilization of our physical estate

·Ensuring we continued to operate and improve whilst covering the clinical supervisor and management structure vacancies.

Staff returned to providing face to face services in the spring of 2022. We took a decision to continue to offer online counselling services as these have proved popular with some of our clients and ensure that our services are accessible to all.

The recruitment of suitably skilled and qualified counsellors remained a challenge throughout the year, following our review and implementation of a new reward package in September 2022 we saw a small improvement in recruitment.

Following the end of the pandemic we saw a reduction in support from agencies and this together with the impact of the cost-of-living crisis on our self-pay clients has meant we have been unable to return to pre-pandemic levels activity.

The qualifications and experience to provide counselling across the range of services Relate provide means that we have had to review our approach and are now looking to provide opportunities for qualified counsellors to work with us while they further enhance their skills and qualifications to the level required to work in our services.

We reduced the overheads costs by approximately £21k per annum although the overall savings were reduced due to inflationary pressures especially in energy. We reviewed our progress against our priorities in January 2022 and set our priorities for 2023/24. We will develop a new strategy in 2024.

The principal areas of charitable activity are relationship counselling for couples and individuals including same sex couples; family counselling; psychosexual therapy.

We continued to provide counselling for IAPT (Improving Access to Psychological Therapies) with clients able to access remote counselling.

Our Living Well with Autism work, funded by Derbyshire County Council, continued to provide a valuable service to people with an Autism Spectrum Condition and their families and our specialist staff were able to provide counselling at various locations across Derbyshire. This contract finished at the end of March 2023 as a new model of service was introduced.

Relationship counselling remains a core service offered to clients with the Centre offering appointments between 9am and 9pm, Monday to Friday, 9am to 5pm on Fridays. Face to face counselling was reinstated in April 2022 and demand for this service has continued with fewer clients choosing remote counselling. The evening and weekend appointments help us meet the varying needs of our clients and offer flexibility. All clients have an assessment appointment and receive on-going counselling if they wish to continue. Waiting times are monitored and every effort is made to keep these as low as possible within the restraints that limited resources impose. The service still covers Derby City, Southern Derbyshire, and East Staffordshire.

We reviewed the approach to children's work and agreed that it remains a valuable part of our service and we continue to deliver children and young people's counselling through self-pay or under direct contracts with local schools and commissioners. We have contracts with 3 schools.

Additional training was provided to the administration team on safeguarding, and customer service with all staff completing mandatory date security training

We continue to work collaboratively with Relate National and other independent Relate Centres via regular briefings and meetings.

This was another year of positive collaboration, including partnership work around autism, adult and children's mental health, suicide prevention and voluntary sector collaboration.

This coming year will be another challenge. We were able to agree a reduced deficit budget of -£16.5k but in the first half of

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Relate Derby And Southern Derbyshire Report of the Trustees Continued

For the year ended 31 March 2023

the year some large unforeseen non-recurrent issues and continuing problems with recruitment and retention mean this is unlikely to be achieved.

FINANCIAL REVIEW

Significant events

This was another particularly challenging year with the end of some contracts reducing our income. We had no alternative but to set a deficit budget, which our level of reserves allowed us to do. We performed better than planned, this was despite a shortfall in our management capacity and some non-recurrent expenditure to prepare our top floor for rental in 2023/24. Income from our remaining contracts and self-pay services continued to reduce due to vacancies in our workforce and our continued inability to recruit. In addition, we have seen a slowing down of demand for self-pay services reflecting the cost-of-living crisis.

Our financial management and controls are continuing to improve. We have also improved our financial reporting and continue to develop improved information for the Board to inform decision making. We reduced our aged debtors significantly improving the cash position and this has been maintained in 2023/24. We also reduced our overheads by over £21,000 full year effect despite inflationary pressures, particularly for energy.

With the increased volume of remote counselling, and reduced activity we will lease the top floor of our building in 2023/24 to further reduce our overhead costs.

We have also been working to strengthen our marketing, communications, and PR, with a professional company and have reviewed our website and will continue to update and develop the content. There remains a considerable opportunity to further improve our marketing and communications.

Total incoming resources decreased in the year from £328,356 to £297,111. Resources expended decreased in the year from £388,156 to 355,655 giving a net deficit of £58,455 compared to a deficit of £59,800 the previous year. The charity had funds carried forward at 31 March 2023 of £614,561 of which £Nil are restricted funds and £614,561 are unrestricted funds. Readily available cash has increased from £105,750 to £137,132 during the year.

Reserves

Reserves policy funds are set aside for restricted reserves donated for a specific purpose, project by project, and if the sums provided for prove insufficient appropriate transfers will be made from unrestricted funds. Free reserves are required to cover:

(a) The risk of redundancies, using statutory redundancy rates for the calculations; (b) A small sum for urgent replacement or hire of capital equipment.

(c) Building up a year's reserve to cover rent and service charge should it be necessary to vacate the premises and find an alternative tenancy.

(d) The need to provide funding from our reserves to cover the costs of continuing to trade for 2 months should we be unable to continue in business.

(e) To enable the continuation of much needed services such as family counselling and others to those in need.

The trustees estimate that taking all of the above into account free reserves of around £71,000 are needed. At 31 March 2023 liquid reserves amounted to £137,132 and are over the required level. In the current funding climate, the trustees feel we can only hold reserves at the required level.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The organisation is a charitable company limited by guarantee, incorporated on 1 December 2003. The company was established under a Memorandum of Association which establishes the objects and powers of the charitable company and is governed under its Articles of Association.

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Relate Derby And Southern Derbyshire Report of the Trustees Continued For the year ended 31 March 2023

Recruitment and appointment of trustees

The trustees of the charity are also the directors for the purposes of company law and under the company's articles are known as Members of the Executive Committee. Under the requirements of the Memorandum and Articles of Association the members of the Executive Committee are elected to serve for one year renewable annually without limit.

Members have been appointed to the Board to reflect a range of skills and expertise and where possible the Board will endeavour to retain/develop these skills. In the event of skills being lost due to retirement or resignation individuals may be approached to offer themselves for election.

The Centre is a member of the Relate Federation and is guided in its provision of services via agreed national service specifications.

The Board regularly assesses compliance with the Charity Commission Good Governance Code and agrees a set of actions to strengthen our governance. We review and revise our Risk Management register and approach, every six months.

Organisational structure

Relate Derby and Southern Derbyshire has an Executive Committee of seven members who meet seven or eight times a year and are responsible for the strategic direction. These meetings continued throughout the year. Responsibility for the day-to-day provision of services is delegated to the Managing Director. Following the resignation of the Chief Executive in February 2022, we reviewed our structure and appointed a Managing Director in March 2022. The new role of Managing Director was established as it was felt that this more accurately reflects the role required in the organisation. We did not immediately replace the Operations Manager role while we assessed the additional management requirements. A Charity Services Manager role was subsequently established, and an appointment was made in October 2023.

The Managing Director represents the local Centre on a number of forums including suicide prevention, autism partnership board, children and adults' mental health forums and Relate Centre Management meetings.

Induction and training of new trustees

Trustees are given the opportunity to meet the Managing Director and other staff/Trustees, to visit the Centre and have the opportunity to understand the workings of Relate Derby and Southern Derbyshire as well as Relate nationally. New members are recruited via a formal external process, then invited to attend an initial meeting, and are provided with an induction pack before making the decision to join the Board.

REFERENCE AND ADMINISTRATIVE INFORMATION

Name of Charity Relate Derby And Southern Derbyshire Charity registration number 1110768 Company registration number 04980776 Principal address 3 Wentworth House Vernon Gate Derby England DE1 1UR

Trustees

The trustees and officers serving during the year and since the year end were as follows:

Mr K W Molyneux Mrs L D Prescott Ms S Sandhu Mrs O Mills (Resigned: 01 September 2022) Ms E Haworth (Appointed: 14 December 2022) Mr S M Bradder (Appointed: 14 December 2022)

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Relate Derby And Southern Derbyshire Report of the Trustees Continued For the year ended 31 March 2023

Independent examiners

Hatocan Accountancy Services 131 Burley Lane Quarndon Derby DE22 5JS

Approved by the Board of Trustees and signed on its behalf by

............................................................................. 12 December 2023 Mrs L D Prescott

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Relate Derby And Southern Derbyshire Statement of Financial Activities (including Income and Expenditure Account) For the year ended 31 March 2023

Notes
Income and endowments from:
Donations and legacies
2
Charitable activities
Schools
TMHD - IAPT
Other contract income
LWWA
Charitable activities
Other trading activites
3
Investments
4
Total
Expenditure on:
Raising funds
5
Other expenditure
Total
Net expenditure
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
£
92,582
40,424
85,240
4,590
63,887
2,000
8,387
1
297,111
)
(355,655
-
)
(355,655
)
(58,544
673,105
614,561		 2022
£
81,528
50,750
96,794
10,399
70,310
13,273
5,299
3
328,356
)
(377,044
)
(11,112
)
(388,156
)
(59,800
732,905
673,105

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04980776

Registered Number :

Relate Derby And Southern Derbyshire Statement of Financial Position As at 31 March 2023

Notes
Fixed assets
Tangible assets
12
Current assets
13
Debtors
Cash at bank and in hand
Creditors: amounts falling due within one year
14
Net current assets
Total assets less current liabilities
Net assets
The funds of the charity
Unrestricted income funds
15
Total funds		 £
2023
440,455
440,455
45,421
137,132
182,553
)
(8,447
174,106
614,561
614,561
614,561
614,561		 £
2022
450,004
450,004
131,470
105,750
237,220
)
(14,119
223,101
673,105
673,105
673,105
673,105

For the year ended 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The financial statements were approved and authorised for issue by the Board and signed on its behalf by:

Mrs L D Prescott Trustee

12 December 2023

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Relate Derby And Southern Derbyshire Notes to the Financial Statements

For the year ended 31 March 2023

1. Accounting Policies

Basis of accounting

The financial statements have been prepared under the historical cost convention, except for investments which are included at market value and the revaluation of certain fixed assets and 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)', Financial Reporting Standard 102 the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), and the Companies Act 2006.

Relate Derby And Southern Derbyshire meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

Statement of cash flows

The Trustees have taken advantage of the exemption in SORP FRS 102 from including a cash flow statement in the financial statements on the grounds that the charitable company is small.

Funds

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Designated funds represent monies set aside by the trustees to cover unexpected cash flow deficits, or unexpected unavoidable costs in order to be able to discharge the Charity's objectives effectively.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Incoming resources

All incoming resources are included in the statement of financial activities when the Charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

Voluntary income received by way of grants is recognised in full when there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability. Such income is only deferred when:

In the case of contracts with customers, income is deferred to distribute the revenue over the life of the contract.

Resources expended

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost 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 resources.

Allocation and appointment of costs

All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Tangible fixed assets

Tangible fixed assets, other than freehold land, are stated at cost or valuation less depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following basis:

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Relate Derby And Southern Derbyshire Notes to the Financial Statements Continued For the year ended 31 March 2023

Land and Buildings Fixtures and Fittings

2% Per annum on cost 25% per annum on cost

Debtors

Short term debtors are measured at transaction price less an impairment.

Pensions

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Creditors

Short term creditors are measured at transaction price.

2. Income from donations and legacies

Unrestricted funds
Donations received
Legacies received		 2023
£
-
92,582
92,582		 2022
£
190
81,338
81,528

3. Income earned from other activities

Unrestricted funds
Social lotteries
Room hire		 2023
£
188
8,199
8,387		 2022
£
233
5,066
5,299

4. Investment income

Unrestricted funds
Bank interest receivable		 2023
£
1
1		 2022
£
3
3

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Relate Derby And Southern Derbyshire Notes to the Financial Statements Continued

For the year ended 31 March 2023

5. Expenditure on generating donations and legacies

Unrestricted funds
Donations
Support costs		 2023
£
105,496
250,159
355,655		 2022
£
135,378
241,666
377,044

6. Other resources expended

Related Party Disclosures

The Charity engaged in the following related party transactions during the year:

£4,641 was paid to the Relate Contracts Team for their services.

£16,673 was paid to Relate South Yorkshire for their services.

7. Analysis of support costs

Management
Governance costs		 2023
£
249,659
500
250,159		 2022
£
235,826
5,840
241,666

8. Net income/(expenditure) for the year

This is stated after charging/(crediting):

This is stated after charging/(crediting):
2023 2022
£ £
Staff pension contributions 1,174 2,542

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Relate Derby And Southern Derbyshire Notes to the Financial Statements Continued

For the year ended 31 March 2023

9. Staff costs and emoluments

Total staff costs for the year ended 31 March 2023 were:

Salaries and wages
Social security costs
Pension costs
Total key management personnel remuneration was £42,813 for the year.
General		 2023
£
220,899
8,616
3,475
232,990
2023
16
16		 2022
£
247,887
12,513
4,364
264,764
2022
25
25

No employees received emoluments in excess of £60,000.

10. Trustee remuneration and related party transactions

There were no trustees' remuneration or other benefits for the year ended 31 March 2023 nor for the year ended 31 March 2022.

11. Comparative for the Statement of Financial Activities

The comparative year values on the Statement of Financial Activites are for unrestricted funds.

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Relate Derby And Southern Derbyshire Notes to the Financial Statements Continued

For the year ended 31 March 2023

12. Tangible fixed assets

Land and Fixtures and
Cost or valuation Buildings Fittings Total
£ £ £
At 01 April 2022 484,171 14,915 499,086
Additions - 178 178
At 31 March 2023 484,171 15,093 499,264
Depreciation
At 01 April 2022 34,167 14,915 49,082
Charge for year 9,683 44 9,727
At 31 March 2023 43,850 14,959 58,809
Net book values
At 31 March 2023 440,321 134 440,455
At 31 March 2022 450,004 - 450,004

13. Debtors

Amounts due within one year:
Trade debtors
Prepayments and accrued income		 2023
£
32,398
13,023
45,421		 2022
£
126,685
4,785
131,470

14. Creditors: amounts falling due within one year

Trade creditors
Other creditors
Accruals and deferred income		 2023
£
2,473
1,632
4,342
8,447		 2022
£
4,741
1,938
7,440
14,119

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For the year ended 31 March 2023

Relate Derby And Southern Derbyshire Notes to the Financial Statements Continued

15. Movement in funds

Unrestricted Funds

General
Unrestricted funds
Unrestricted Funds - Previous year
General
Unrestricted funds		 Balance at
01/04/2022
£
673,105
673,105
Balance at
01/04/2021
£
732,905
732,905		 Incoming
resources
£
297,111
297,111
Incoming
resources
£
328,356
328,356		 Outgoing
resources
£
)
(355,655
)
(355,655
Outgoing
resources
£
)
(388,156
)
(388,156		 Balance at
31/03/2023
£
614,561
614,561
Balance at
31/03/2022
£
673,105
673,105

Purpose of unrestricted Funds

Unrestricted funds

Reserves policy Funds are set aside for restricted reserves donated for a specific purpose, project by project and if the sums

provided for prove insufficient appropriate transfers will be made from unrestricted funds.

16. Analysis of net assets between funds

Unrestricted funds
General
Unrestricted funds		 Tangible
fixed assets
Net current
assets /
(liabilities)
Net Assets
£
£
£
440,455
174,106
614,561
440,455
174,106
614,561

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Relate Derby And Southern Derbyshire Notes to the Financial Statements Continued

For the year ended 31 March 2023

Previous year
Unrestricted funds
General
Unrestricted funds		 Tangible
fixed assets
Net current
assets /
(liabilities)
Net Assets
£
£
£
450,004
223,101
673,105
450,004
223,101
673,105

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Relate Derby And Southern Derbyshire Notes to the Financial Statements Continued For the year ended 31 March 2023

INCOME AND ENDOWMENT
Donations and legacies
Donations
Client Contributions And Sales
Charitable activities
Schools (Schools)
Contract Work (Tmhd - Iapt)
Contract Work (Other Contract Income)
Contract Work (Lwwa)
Grants (Charitable Activities)
Other trading activities
Social Lotteries
Room Hire
Investments
Bank Interest Receivable
Total incoming resources
EXPENDITURE
Raising donations and legacies
Wages
Social Security
Pensions
Other
Bad Debts
SUPPORT COSTS
Management
Management And Admin Costs
Social Security
Pensions
Rates And Water
Insurance
Light And Heat
Telephone
Postage And Stationery
Sundries
Training
Cleaning, Security, Repairs
Office Equipment
Publicity And Pr		 £
2023
-
92,582
92,582
40,424
85,240
4,590
63,887
2,000
196,141
188
8,199
8,387
1
1
297,111
)
(102,258
)
(2,064
)
(1,174
)
(105,496
-
-
)
(118,640
)
(6,553
)
(2,302
)
(6,571
)
(4,473
)
(3,086
)
(9,907
)
(1,171
)
(4,791
)
(809
)
(21,191
)
(2,288
)
(110		 £
2022
190
81,338
81,528
50,750
96,794
10,399
70,310
13,273
241,526
233
5,066
5,299
3
3
328,356
)
(125,548
)
(7,288
)
(2,542
)
(135,378
)
(11,112
)
(11,112
)
(122,339
)
(5,225
)
(1,822
)
(6,127
)
(3,559
)
(2,307
)
(10,087
)
(1,589
)
(4,715
)
(103
)
(8,662
)
(2,627
)
(670

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Relate Derby And Southern Derbyshire Detailed Statement of Financial Activities For the year ended 31 March 2023

Professional Fees
Recruitment Fees
Consultancy Fees
Accountancy And Legal Fees
Computer Expenses
Operational Support
Freehold Property
Plant And Machinery
Supervision And Moderation Costs
Hmrc Interest
Sub-Contracted Counselling
Advertising
Governance costs
Auditors' Remuneration
Total resources expended
Net Expenditure		 )
(3,958
)
(1,930
)
(684
)
(18,750
)
(5,252
)
(16,655
)
(9,683
)
(45
)
(1,208
)
(69
)
(833
)
(8,700
)
(249,659
)
(500
)
(500
)
(355,655
)
(58,544		 )
(1,331
)
(481
-
)
(14,459
)
(8,495
)
(18,284
)
(9,683
-
-
-
-
)
(13,261
)
(235,826
)
(5,840
)
(5,840
)
(388,156
)
(59,800

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This page does not form part of the statutory financial statements