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2023-07-31-accounts

The Compassionate Mind Foundation Annual Report and Financial Statements for the Year Ended 31 July 2023

Charity number: 1120364

Company number: 05888231

The Compassionate Mind Foundation

Contents of the Annual Report and Financial Statements for the year ended 31 July 2023

Page
Trustees’ report 1 – 3
Accountants’ report 4
Statement of financial activities 5
Balance sheet 6
Notes to the financial statements 7 – 10

The Compassionate Mind Foundation Report of the Trustees for the year ended 31 July 2023

The Trustees are pleased to present their report together with the financial statements of the Charity for the year ended 31 July 2023.

Reference and administrative information

Trustees and Directors

The Directors of The Compassionate Mind Foundation, a charitable company (the “Charity”) are its Trustees for the purpose of Charity Law and throughout this report are collectively referred to as the Trustees.

The Trustees serving during the year and at the year-end are as follows:

Board of Trustees:

Dr K McEwan (Chairperson) Ms S Dowd – appointed 17/10/2022 Mrs J Forrest Mrs J Gilbert Dr T A Schroder Mr D Shah Mrs D Woollands President: Prof. P Gilbert Charity number: 1120364 Company number: 05888231 Registered office: Markeaton Lodge University of Derby Markeaton Street Derby Derbyshire DE22 3AW Accountants: Cedar + Co. Chartered Certified Accountants The Greenhouse 106-108 Ashbourne Road Derby Derbyshire DE22 3AG Bankers: The Co-operative Bank PO Box 250 Delf House Skelmersdale WN8 6WT

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The Compassionate Mind Foundation Report of the Trustees for the year ended 31 July 2023

Structure, Governance and Management

Governing Document

The Compassionate Mind Foundation is a Company limited by guarantee and a Registered Charity (collectively referred to as the “Charity”). The Charity was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the Charity being wound up, the Trustees are required to contribute an amount not exceeding £10.

The Board is in the process of updating the Memorandum and Articles.

Objectives of the Charity

The Compassionate Mind Foundation (CMF) is a charity which promotes wellbeing through facilitating the scientific understanding and application of compassion. It is underpinned by the theories put forward in the compassion focused therapy literature and research, including compassionate mind theory.

Management

The responsibility to ensure appropriate management of the Charity is vested in the Board of Trustees.

Induction and Training of Trustees

Most Trustees are already familiar with the practical work of the Charity. However, new Trustees are encouraged to visit the Charity’s offices, website, etc. and attend meetings and events to familiarise themselves with the Charity and the context in which it operates. Staff and Trustees are provided with an induction process and guidance.

Risk Management

The Board has agreed a risk management structure for the organisation and has identified the major risks to which the organisation is exposed. Where appropriate, systems and procedures have been established to mitigate the risks faced by the Charity. Internal control risks are minimised by the implementation of procedures for authorisation of transactions and projects.

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The Compassionate Mind Foundation

Organisational Structure

The Charity is managed by the Board of Trustees, who are supported by the employees and a number of committees, who represent a variety of professional backgrounds relevant to the work of the Charity. The employees meet with the Trustees on a quarterly basis to discuss the future strategy and policy of the Charity in an advisory capacity.

The final decision-making process is the responsibility of the Trustees.

Financial Review

Since the Charity had changed their approach to delivering their planned workshops and conference from F2F to Online and Hybrid, allowing both in-person and online attendance. Due to the cost of living rises, we are noticing a drop in F2F attendance, but an increase in online sales. This greatly expanded the reach of the training, allowing delegates from across the world to join. Alongside this, given the nature of training (working with human difficulties) and the suffering caused by the pandemic, this extended the interest and demand for CFT training. The Charity, therefore, provided a greater number of workshops online, which increased income, but were undertaken at relatively low costs to run compared to face-to-face events in previous years.

Given the rapid growth, the Charity plan to reinvest funds into training development, providing a combination of face to face and online training. There are also considerable plans for developing the infrastructure, employing more staff to support the increased activities as shown in the current years accounts. Funds will also be used for research projects as well as developing resources such as freely available video series like the ‘Compassion and Safe Relating’ series developed during the pandemic.

The Charity will also continue to offer more scholarships and award free places on the training programmes, workshops, and conferences.

Reserves Policy

The policy of the Trustees is to generate funds from training events and charitable donations in order to facilitate the work of the Foundation. This is to increase the awareness and use of Compassion Focused Therapy in a variety of psychological and social domains. In addition, the Charity will fund research into compassion focused social and psychological research. We are developing a fund from training events to cover the costs of running the Charity, undertaking research, maintaining the website, and paying trainers.

In order to do this, the Trustees estimate that a reserve of £232,924 is required to cover six months running costs of the Charity. The financial statements currently show an unrestricted reserve of £301,364 for the Charity as at 31 July 2023. The Trustees will continue to monitor the reserves policy. The shift in the Charities activities following the pandemic will result in larger operating costs going forwards, this was a strategic decision made by the trustees, by offering wider training events creating higher revenue streams moving forward and enable the foundation to meet its growth targets.

Trustees responsibilities in relation to the financial statements

Company Law requires the Trustees to prepare financial statements that give a true and fair view of the state of the affairs of the Charity at the end of the financial year and of its surplus or deficit for the financial year. In doing so the Trustees are required to:

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The Trustees are responsible for maintaining proper accounting records, which disclose with reasonable accuracy at any time the financial position of the Charity and enables them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Trustees and signed on their behalf by:

…………………………………. Dr K McEwan

23 April 2024

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The Compassionate Mind Foundation Independent examiner’s report to the Trustees of the Compassionate Mind Foundation

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 July 2023.

Responsibilities and basis of report

As the charity's trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the Act”).

I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act. Independent examiner’s statement

Since the Company’s gross income exceeded £250,000. I confirm that I am qualified to undertake the examination because I am member of Association of Chartered Certified Accountants, which is one of the listed bodies.

I have completed my examination. I can confirm that no material matters have come to my attention in connection with the examination (other than that disclosed below) which gives me cause to believe that in, any material respect:

· the accounts did not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.

I have no concerns and have come across no other maters 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.

Cedar + Co. Chartered Certified Accountants The Greenhouse 106-108 Ashbourne Road Derby DE22 3AG

24 April 2024

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The Compassionate Mind Foundation Statement of Financial Activities Income and Expenditure Account for the year ended 31 July 2023

Note
Incoming resources
Income from activities
Donations
Marmot Grant
Total incoming resources
Resources expended
Reed Foundation Schools project
Marmot Grant
Costs of activities
2
Governance costs
3
Total resources expended
4
Net incoming resources
Fund balance brought forward at
1 August 2022
Fund balance carried forward at
31 July 2023
9,10		 Restricted
Unrestricted
Funds
Funds
Total
Total
2023
2023
2023
2022
£
£
£
£
-
632,948
632,948
622,836
-
2,497
2,497
1,713
-
-
-
10,100
-
635,445
635,445
634,649
-
-
-
8,273
-
-
-
5,000
-
648,514
648,514
446,048
-
122,596
122,596
86,627
-
771,110
771,110
545,948
-
(135,665)
(135,665)
88,701
9,350
437,029
446,379
357,678
9,350
301,364
310,714
446,379

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The Compassionate Mind Foundation Balance sheet as at 31 July 2023

Note
Fixed assets
Tangible assets
6
Current assets
Stock
Debtors
7
Cash at bank and in hand
Creditors
8
Net current assets
Net assets
Capital funds
Restricted funds
9
Unrestricted funds
10		 2023
2022
£
£
21,614
23,219
21,614
23,219
338
450
79,544
21,309
479,384
547,945
559,266
569,704
270,166
146,544
289,100
423,160
310,714
446,379
9,350
9,350
301,364
437,029
310,714
446,379

For the year ending 31 July 2023 the charity is entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The Board of Trustees have not required the company to obtain an audit of its financial statements for the year ended 31 July 2023 in accordance with Section 476 of the Companies Act 2006.

The Board of Trustees acknowledge their responsibility for complying with the requirements of the Act with regards to the accounting records and the preparation of accounts.

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Approved by the board on 23 April 2024 and signed on its behalf by:

………………………………..… Dr K McEwan

The notes form part of these financial statements

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The Compassionate Mind Foundation Notes to the financial statements for the year ended 31 July 2023

1 Accounting policies

a) Basis of accounting

The financial statements have been prepared under the historical cost convention, and in accordance with applicable accounting standards and the Statement of Recommended Practice: Accounting and Reporting by Charities (revised 2005).

b) Company status

The charity is limited by guarantee and every member undertakes to contribute such an amount, not exceeding £10, as may be required in the event of the charity being wound up while he is a member, or within one year after he ceases to be a member, for payment of the debts and liabilities of the company.

c) Fund accounting

Unrestricted funds 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.

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 used in accordance with specific restrictions imposed by donors, or which have been raised by the charity for particular purposes. The cost 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.

d) Incoming resources

All incoming resources are included in the SOFA when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.

e) Resources expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that 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.

Support costs are those costs incurred directly in support of expenditure on the objects of the charity. Management and administration costs are those incurred in connection with administration of the charity, compliance with constitutional and statutory requirements and the reasonable costs of Trustees attending Charity meetings, conferences and workshops.

f) Tangible fixed assets

Depreciation is provided on tangible fixed assets at the following annual rates in order to write off each asset over its estimated useful life:

Website Office equipment

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The Compassionate Mind Foundation Notes to the financial statements for the year ended 31 July 2023

2 Cost of activities

Activities Direct Staff costs
Other
Total
Total
2023
2023
2023
2023
2022
£
£
£
£
£
365,733
278,400 4,381
648,514
446,048

Direct costs are those associated with providing the activity, for example, room hire and travel costs.

Other costs include support costs and other indirect costs.

3 Governance costs

Governance costs Other
Depreciation
Total
Total
2023
2023
2023
2022
£
£
£
£
108,987
13,609
122,596
86,627

Other governance costs represent administration and accountancy fees.

4 Total resources expended

Total resources expended 2023
2022
£
£
771,110
545,948

Included in the above is depreciation totaling £13,609 (2022: £12,370)

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The Compassionate Mind Foundation Notes to the financial statements for the year ended 31 July 2023

5 Staff costs and Trustee remuneration

On average the Charity had 14 employees (10 Full-time Equivalent) during the year. The total amount of staff costs for the year was £278,400. Last year, the comparable information was 11 employees (6 Full-time Equivalent), amounting to total staff costs of £198,281.

No Trustees were paid any remuneration during the year. Reasonable costs for Trustees to attend Charity meetings, conferences and workshops were paid by the Charity.

6 Tangible fixed assets

Cost
At 1 August 2022
Additions
At 31 July 2023
Depreciation
At 1 August 2022
Charge for year
At 31 July 2023
Net book value
At 31 July 2023
At 31 July 2022		 Office
Website
Equipment
Total
£
£
£
27,009
58,622
85,631
4,019
7,985
12,004
31,028
66,607
97,635
21,559
40,853
62,412
3,505
10,104
13,609
25,064
50,957
76,021
5,964
15,650
21,614
5,450
17,769
23,219
7
Debtors
Trade debtors
Prepayments		 2023
2022
£
£
54,196
20,014
25,348
1,295
79,544
21,309

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The Compassionate Mind Foundation Notes to the financial statements for the year ended 31 July 2023

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Creditors
Trade creditors
Accruals
Deferred income
Other creditors
9
Restricted funds
Marmot Grant		 2023
2022
£
£
25,526
15,162
2,650
2,580
232,715
123,999
9,274
4,803
270,165
146,544

A balance of £9,350 was brought forward from the previous year and there was no movement during the year. The balance carried forward to next year is £9,350. Last year £5,000 was expended to the profit and loss account.

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Unrestricted funds
At 1 August 2022
Net incoming resources in the year
At 31 July 2023		 2023
£
437,029
(135,665)
301,364

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