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2023-03-31-accounts

Charity number: 1124775 Company number: 6081874

Derwent Rural Counselling Service (Limited by Guarantee)

Reports and Financial Statements

For the Year Ended 31 March 2023

Derwent Rural Counselling Service

Annual Report and Financial Statements

For the Year Ended 31 March 2023

Contents

Page
Trustees' report 1 - 10
Independent auditors' report 11 - 14
Statement of Financial Activities 15
Balance Sheet 16
Cash Flow Statement 17
Notes to the financial statements 18 - 28

Derwent Rural Counselling Service

Reference and Administration Details of the Charity, its Trustees and Advisers

For the Year Ended 31 March 2023

Trustees Mr M Serby (Chair)
Miss A Worsnip (Vice-chair)
Ms N Adams
Dr P Askham
Mrs E Muller
Mr RM Biddulph
Mrs J Howlings Appointed 13/04/2022
Mrs G Capewell Appointed 13/04/2022
Charity number 1124775
Company number 6081874
Registered office Newholme Hospital
Baslow Road
Bakewell
Derbyshire
DE45 1AD
Senior management team Mrs J Smeeton (Chief Executive Officer)
Mr M Penman (Operations Manager)
Mrs K Heappey (Clinical Lead)
Auditor Hawsons Chartered Accountants
Statutory Auditors
Pegasus House
463a Glossop Road
Sheffield
S10 2QD
Bankers Natwest
1 Water Lane
Bakewell
DE45 1YY
CCLA
Senator House
85 Queen Victoria Street
London
EC4V 4ET

1

Derwent Rural Counselling Service

Trustees’ Report

For the Year Ended 31 March 2023

The Trustees, (who are also directors of the charity for the purposes of the Companies Act) present their Annual Report together with the audited financial statements of Derwent Rural Counselling Service (the charity) for the year ended 31 March 2023. The Trustees confirm that the Annual Report and financial statements of the charity comply with the current statutory requirements, the requirements of the charity’s governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Since the charity qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director’s Report) Regulations 2013 is not required.

Objectives and activities

Objectives and activities

The charity’s objectives are to promote the good mental health and wellbeing of any members of the public who are experiencing mental illness, however and wherever those problems or illnesses have arisen, through the use of counselling, therapeutic and preventative practices.

Activities for achieving objectives

DRCS offers a variety of therapies including:

We also offer well-being workshops in schools and businesses and supervision for therapists and other professionals in a business or educational setting.

2

Derwent Rural Counselling Service

Trustees’ Report

For the Year Ended 31 March 2023

Strategies for achieving objectives

DRCS is a charity committed to providing professional, confidential and empathetic therapy to anyone who asks. Mental Health concerns impact 1 in 4 adults and 1 in 10 children every year, therefore access to effective care and methods of prevention are essential.

We have a team of highly qualified and experienced therapists ready to help any individual, whether it be regarding themselves personally, or if they are worried about a friend, colleague or loved one. We help individuals decide on the right choice of therapy and offer professional advice.

We help support businesses, schools and other educational establishments through our programme of preventative workshops. These focus on early identification of Mental Health difficulties amongst staff or students and overcoming stigma. A culture of well-being in the work place or learning environment is proven to have a positive impact on productivity and performance.

Key performance indicators

The charity uses a number of key performance measurements to assess success in delivering our objectives and activities. These are:

These performance indicators are measured against our own targets, regional targets and national targets.

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. More details on how the charity delivers public benefit can be found in the achievements and performance section of this report.

3

Derwent Rural Counselling Service

Trustees’ Report

For the Year Ended 31 March 2023

Achievements and Performance

Review of activities

Meeting demand

The demand for our service continues to grow and our achievements and challenges are listed below:

Waiting times

Status

4

Derwent Rural Counselling Service

Trustees’ Report

For the Year Ended 31 March 2023

Contracts won

Partnerships

DRCS’ works with primary and secondary schools on an ad-hoc basis. Seen an increased number of children and young people referrals from GP surgeries, CAMHS and schools not covered by commissioned NHS service.

DRCS continued to work with DDDC and the Peak District National Park Authority offering well-being programme to its employees.

Chosen as charity of the year by Breeze Corporate Finance which handed over a generous donation of £7,606 to DRCS.

Recruitment and staffing

Infrastructure

Our portfolio of owned and leased properties (Belper, Alfreton, Derby, Chesterfield, Bakewell) underwent regular maintenance. We await confirmation of the opening of the new Bakewell Hub for January 2024.

The lease on the Ilkeston office was surrendered following impact of Covid. Introduction of Long Eaton leased premises to meet demand of the Erewash population.

DRCS purchased the former Registry Office in Chesterfield and has refurbished the building which was officially opened in September 2023 as a DRCS base, with opportunities for revenue generation from subletting/leasing space.

5

Derwent Rural Counselling Service

Trustees’ Report

For the Year Ended 31 March 2023

Profiling

DRCS is now coherently profiling its capabilities, activities and expertise to attract greater awareness. A consistency of messages with regular timetabling means the charity is managing its reputation through tailored and targeted social media and marketing, reinforcing the direction of the board and management team’s strategy. The continued aim is to position DRCS as the first choice for all those who require support and help with their mental health, show commitment to the sector and to increase public relations.

New website content, including new recruitment section, written.

Financial Review

Financial performance and position

Income for the year was £2,126,308 (2022: £2,015,929) and expenditure was £2,060,290 (2022: £2,051,122) giving net income of £66,018 (2022: net expenditure of £35,193).

Designated funds - £50,000 of salaries were spent on young people counselling during the year.

Activities during the previous year were still being impacted by the Covid-19 pandemic and the road to recovery. In the current year services returned back to normality but some working practices established during the pandemic were maintained i.e. virtual delivery of counselling. We are still seeing an increase in the number of people needing support due to the long term impact of the pandemic and this is still expected to continue into the future albeit at a lower level. There was an increase in demand for our services throughout the year which increased the amount of IAPT fee income.

In the year a property on Chesterfield Beetwell Street was sold, net of fees, for £190,791 and these proceeds have been reinvested in the renovation of the main building on the site. The renovations on the main building commenced in February 2023 and completed in August 2023.

At the year end total funds were £1,570,730 (2022: £1,504,712) which were all unrestricted. Within unrestricted funds are designated funds of £250,000 (2022: £250,000) towards the renovation costs of the Chesterfield Beetwell Street property and £Nil (2022: £50,000) towards young persons counselling.

Principal risks and uncertainties

During the year the Trustees have considered and identified the major risks to which the charity is exposed and in so doing the means for mitigating the risks. The main causes for concern are:

6

Derwent Rural Counselling Service

Trustees’ Report

For the Year Ended 31 March 2023

Reserves policy

During the previous financial year Trustees undertook a review of the charity’s reserves policy and calculated a target level of reserves which is fit for purpose. We continue to see growth in demand for services which continues to be a catalyst for growth in the organisation. The charity requires enough funds in reserves to cover general expenditure in case of a short-fall in funding, funds to cover future lease commitments and a sufficient amount for investment and development of the charity’s services and infrastructure.

At the year-end free reserves not tied up in fixed assets and excluding bank loans secured on property were £988,733 (2022: £802,933) after designating funds of £250,000 (2022: £300,000). The target level of reserves of around £695,000 accounts for three months general unrestricted expenditure, taking into consideration inflation, and future lease commitments.

As the charity has taken on new commitments after the year end for the running costs of the new Chesterfield property Trustees consider it prudent to carry excess reserves and will revisit the reserves target in the 2023/2024 financial year.

Investment policy

Where possible the Trustees will consider, in areas of high need for services, the purchase of new properties via mortgage financing and a cash deposit, providing we are assured that the property will earn the cost of the mortgage re-payments.

As free reserves are currently above the required levels, and there are strategic plans in place to expand services and operational locations, Trustees do not consider it appropriate to invest surplus cash balances in fixed term deposits, nor use funds to make one off lump sum repayments on current mortgages.

Cash balances need to be available for Trustees’ to act timely to any sector developments and opportunities which arise.

7

Derwent Rural Counselling Service

Trustees’ Report

For the Year Ended 31 March 2023

Going concern

After making the appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.

Plans for future periods

Future developments

DRCS is continuing with its strategy of growth. It is still the long term strategy to develop the charity into a centre of excellence for providing psychological services and a preferred employer.

During the year previous year the charity was successful in securing ownership of a significant property within Chesterfield town centre and renovations commenced on the building to create bespoke office space, consulting rooms, meeting rooms and relaxation spaces to help cope with an increased demand for our services in the area plus other tenanted options. This is an exciting project and another step in implementing the board’s strategy for growth.

We will also continue to invest in the organisational structure of the charity to ensure it continues to meet operational requirements.

Structure, governance and management

Constitution

Derwent Rural Counselling Service (DRCS) was the successor of Derwent Rural Counselling Services Limited which was established in 1989. The year ending March 2010 was the first year DRCS operated as incorporated charity, limited by guarantee.

The charity is governed by its Memorandum and Articles of Association which were amended on 29 April 2016 to enable the charity to work across a wider geographical area and include well-being services in its activities.

Method of appointment or election of trustees

The existing trustees have the power to appoint new trustees who are able and willing to fulfil the role. Trustees are encouraged to join the board of DRCS on the basis of the expertise and experience in order to ensure the optimum contribution to the current and future needs of the Charity. The trustees seek to maintain a suitable balance of skills and interests amongst those serving on the board.

Each trustee holds office for three years from the date of appointment at the end of which they are eligible for re appointment for one or more further terms of three years each.

8

Derwent Rural Counselling Service

Trustees’ Report

For the Year Ended 31 March 2023

Policies adopted for the induction and training of trustees

Once a trustee is recruited an induction procedure is followed using an induction pack which includes a written copy of the Articles of Association and an introductory meeting with staff and a current trustee. Trustees are encouraged to take an ongoing active interest in the work of the charity and apply their skills to benefit the charity.

Pay policy for senior staff

When deciding pay levels for senior staff, trustees consider rates of pay for similar organisations, NHS banding rates and the benefits required to recruit and retain the most suitably qualified and capable staff.

Organisational structure and decision making

DRCS is governed by its Trustee Board which is responsible for setting the strategic direction of the organisation and policy decisions. The Board meets on a bi-monthly basis and delegates the day to day operation of the organisation to the senior management team.

The Chief Executive Officer (CEO) is responsible for delivery of the strategic direction of the charity including managing income streams, ensuring a positive work culture and to keep the Board fully informed of the operations of the charity. They are also responsible for recommending changes and actions for improvement.

A full time Operations Manager, answerable to the Board, runs the service on a day to day basis. The Admin Team consists of various full time and part time staff who are managed by the Deputy Operations Manager. Their role is to ensure that appointments are booked with patients seeking treatment, that qualified clinicians are available, and that a suitable treatment room is provided for the treatment. Admin staff are also responsible for meeting and greeting patients in order to ensure that the patient experience is totally supportive from the first to the last contact with the service.

Clinical Governance is provided by a Clinical Lead who has responsibility for all of the clinical protocols required and reports on clinical matters directly to the Board. Given the breadth and complexity of clinical governance there are also Assistant Clinical Leads who have specific responsibility for Safeguarding, CPD of clinicians and CBT therapy.

A number of Clinical Supervisors have been trained and appointed to provide one to one and group Supervision to Clinicians which is also a mandatory professional requirement as is their CPD.

Risk management

A detailed risk register is reviewed annually or earlier if changes to risks are identified. Trustees and the senior management team have taken steps to mitigate risks identified to an acceptable level.

Fundraising standards information

The charity does not carry out any fundraising nor use a professional fundraiser to carry out fundraising activities.

9

Derwent Rural Counselling Service

Trustees’ Report

For the Year Ended 31 March 2023

Trustees’ responsibilities

The trustees (who are also directors of the Derwent Rural Counselling Service for the purposes of company law) are responsible for preparing the Trustees’ Annual 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, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

In so far as the trustees are aware:

On behalf of the board

Ms N Adams

20 November 2023

10

Derwent Rural Counselling Service Independent Auditor’s Report to the members of the Derwent Rural Counselling Service

For the Year Ended 31 March 2023

Opinion

We have audited the financial statements of the Derwent Rural Counselling Service (the ‘charitable company’) for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

11

Derwent Rural Counselling Service

Independent Auditor's Report to the members of Derwent Rural Counselling Service (continued)

For the Year Ended 31 March 2022

Other information

The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements or a material misstatement in the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

12

Derwent Rural Counselling Service

Independent Auditor's Report to the members of Derwent Rural Counselling Service (continued)

For the Year Ended 31 March 2023

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement (set out on page 10), the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed auditor under the Companies Act 2006 and report in accordance with this Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The charitable company is subject to laws and regulations that directly and indirectly affect the financial statements. Based on our understanding of the charitable company and the environment it operates within, we determined that the laws and regulations which were most significant included FRS 102, Companies Act 2006, Health and Safety regulations and the Charities Act 2011. We considered the extent to which non-compliance with these laws and regulations might have a material effect on the financial statements, including how fraud might occur. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of inappropriate journal entries to improve the company’s result for the period, and management bias in key accounting estimates.

13

Derwent Rural Counselling Service Independent Auditor's Report to the members of Derwent Rural Counselling Service (continued)

For the Year Ended 31 March 2023

Audit procedures performed by the engagement team included:

There are inherent limitations in the audit procedures described above and the more removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-audit-of-the-fi/description-of-theauditor’s-responsibilities-for. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Hawsons

Simon Bladen (Senior Statutory Auditor)

For and on behalf of Hawsons Chartered Accountants, Statutory Auditor

Pegasus House 463a Glossop Road Sheffield S10 2QD

Date 20 November 2023

14

Derwent Rural Counselling Service

Statement of Financial Activities

(Including Income and Expenditure Account)

For the Year Ended 31 March 2023

Note
Income
Donations and legacies
2
Investments
4
Charitable activities
5
Total income
Expenditure
Charitable expenditure
6
Total expenditure
Net income/(expenditure)
Net movement in funds
Reconciliation of funds
Total funds brought forward
17
Total funds carried forward
17		 2023
2022
Unrestricted
Unrestricted
£
£
11,796
10,059
136
3
2,114,376
2,005,867
2,126,308
2,015,929
2,060,290
2,051,122
2,060,290
2,051,122
66,018
(35,193)
66,018
(35,193)
1,504,712
1,539,905
1,570,730
1,504,712

All income and expenditure derive from continuing activities.

The statement of financial activities includes all gains and losses recognised during the year.

15

Derwent Rural Counselling Service

Balance Sheet

As at 31 March 2023

Company registration number: 6081874

Note
Fixed assets
Tangible assets
11
Current assets
Debtors
12
Cash and cash equivalents
Creditors: amounts falling due within one year
13
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than one year
14

Net assets
Charity funds
Unrestricted funds
17
Designated funds
17
Total charity funds
17		 2023
£
803,438
212,569
1,094,450
1,307,019
(118,516)
1,188,503
1,991,941
(421,211)
1,570,730
1,320,730
250,000
1,570,730		 2022
£
926,643
212,521
947,109
1,159,630
(104,839)
1,054,791
1,981,434
(476,722)
1,504,712
1,204,712
300,000
1,504,712

These accounts which have been prepared in accordance with the special provisions relating to small companies subject to the small companies regime within Part 15 of the Companies Act 2006, were approved and authorised for issue by the board on 20 November 2023.

Signed on behalf of the board of trustees

Ms N Adams

The notes on pages 18 to 28 form part of these financial statements.

16

Derwent Rural Counselling Service

Statement of Cash Flow

For the Year Ended 31 March 2023

2023 2022
Note £ £
Net cash flow from operating activities 19 72,386 260,850
Cash flow from investing activities
Payments to acquire tangible fixed assets (43,211) (546,615)
Proceeds on disposal 190,791 -
Interest received 136 3
Net cash flow from investing activities 147,716 (546,612)
220,102 (285,762)
Cash flow from financing activities
Repayment of bank loans (53,423) (38,184)
Issue of new bank loan - 350,000
Interest paid (19,338) (19,513)
(72,761) 292,303
Net increase in cash and cash equivalents 147,341 6,541
Cash and cash equivalents brought forward 947,109 940,568
Cash and cash equivalents carried forward 1,094,450 947,109

17

Derwent Rural Counselling Service

Notes to the Financial Statements

For the Year Ended 31 March 2023

1 Accounting policies

(a) General information and basis of preparation

Derwent Rural Counselling Service is a registered Charity and a company limited by guarantee in England. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities are set out in the Trustees' Annual Report.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and United Kingdom Generally Accepted Practice.

The financial statements are prepared on a going concern basis under the historical cost convention.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

(b) Funds

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.

(c) Income recognition

All income is included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

(d) Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.

Expenditure on charitable activities includes direct costs and appropriate proportion of the support costs of the business.

18

Derwent Rural Counselling Service

Notes to the Financial Statements

For the Year Ended 31 March 2023

1 Accounting policies (continued)

(e) Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Buildings: 2% straight line Office equipment: 10% straight line Computer equipment: 25% straight line

(f) 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.

(g) 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.

(h) Liabilities and provisions

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation.

(i) Leases

Rentals payable under operating leases are charged to the SOFA on a straight line basis over the period of the lease.

(j) Pension contributions

The charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

19

Derwent Rural Counselling Service

Notes to the Financial Statements

For the Year Ended 31 March 2023

(k) Tax

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

(l) Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

(m) Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

20

Derwent Rural Counselling Service

Notes to the Financial Statements

For the Year Ended 31 March 2023

2 Income from donations and legacies
2023
Unrestricted
£
Client donations
11,796
3 Income from other trading activities
2023
Unrestricted
£
Room hire
-
4 Income from investments
2023
Unrestricted
£
Investment income
136
5 Income from charitable activities
2023
Unrestricted
£
Fees for counselling
2,047,189
Well-being fees
57,239
Supervision fees
4,050
Other income
5,898
2,114,376		 2022
Unrestricted
£
10,059
2022
Unrestricted
£
-
2022
Unrestricted
£
3
2022
Unrestricted
£
2,000,242
-
2,860
2,765
2,005,867

21

Derwent Rural Counselling Service

Notes to the Financial Statements

For the Year Ended 31 March 2023

6 Analysis of expenditure on charitable activities
2023
Unrestricted
£
Salaries
1,073,941
Employer's NI
99,207
Staff pension costs
49,605
Staff expenses
7,545
Counsellors' fees
557,210
Counsellors' expenses
21,292
Supervision
3,737
Room hire
23,509
Training
2,977
Insurance
9,288
Printing & stationery
2,147
Telephone, internet & postage
38,607
Computer equipment
15,850
Office, sundry & other
8,168
Recruitment
915
Professional fees
40,501
Subscriptions
6,994
Depreciation
16,416
Premises expenses
94,102
Loan interest
19,338
Accountancy fees
-
Auditor’s remuneration
8,280
Advertising and promotion
543
Bank charges
909
Bad debts
-
(Profit)/loss on disposal of fixed assets
(40,791)
2,060,290
7 Net income for the year
2023
£
Net income is stated after charging:
Depreciation of tangible fixed assets
16,416
Operating lease rentals
47,500		 2022
Unrestricted
£
1,000,289
95,214
46,304
3,465
630,310
4,572
5,010
1,201
6,079
6,817
4,414
43,956
15,220
9,258
1,205
39,215
8,413
27,218
110,568
19,513
13
6,575
1,846
817
(36,370)
-
2,051,122
2022
£
27,218
74,948

22

Derwent Rural Counselling Service

Notes to the Financial Statements

For the Year Ended 31 March 2023

8 Auditor’s remuneration

The auditor’s remuneration amounts to an audit fee of £8,280 (2022: £6,575).

9 �Trustees' and key management personnel remuneration and expenses

The trustees neither received nor waived any remuneration during the year (2022: £Nil).

No trustee reclaimed expenses during the year (2022: £nil).

The Service considers its key management personnel comprise the Chief Executive Officer, Operations Manager and Clinical Lead. The total amount of employee benefits received by key management personnel is £190,979 (2022: £164,902).

10 �Staff costs and employee remuneration

�The average monthly number of employees during the year was as follows:

Average number of employees
The total staff costs and employee benefits was as follows:
Wages and salaries
Social security
Defined contribution pension costs		 2023
2022
Number
Number
41
40
2023
2022
£
£
1,073,941
1,000,289
99,207
95,214
49,605
46,304
1,222,753
1,141,807

No employees received total employee benefits (excluding employer pension costs) of more than £60,000 (2022: none).

23

Derwent Rural Counselling Service

Notes to the Financial Statements

For the Year Ended 31 March 2023

11 �Tangible fixed assets

Land and
buildings
£
Cost or valuation:
At 1 April 2022
952,893
Additions
43,211
Disposals
(150,000)
Transfer
1,816
At 31 March 2023
847,920
Depreciation:
At 1 April 2022
62,005
Charge for the year
8,411
Depreciation on disposals
-
Transfer
612
At 31 March 2023
71,028
Net book value:
At 31 March 2023
776,892
At 31 March 2022
890,888
12 Debtors
Trade debtors
Other debtors		 Computer
equipment
£
37,966
-
-
37,966
30,673
3,915

-
-
34,588
3,378
7,293		 Office
equipment
£
47,764

-

-
(1,816)
45,948
19,302
4,090

-
(612)
22,780
23,168
28,462
2023
£
198,216
14,353
212,569		 Total
£
1,038,623
43,211
(150,000)
-
931,834
111,980
16,416

-
-
128,396
803,438
926,643
2022
£
206,344
6,177
212,521

24

Derwent Rural Counselling Service

Notes to the Financial Statements

For the Year Ended 31 March 2023

13 �Creditors: amounts falling due within one year

Bank loans
Trade creditors
Other tax and social security
Accruals		 2023
2022
£
£
50,230
48,142
33,229
19,409
23,512
24,945
11,545
12,343
118,516
104,839

The Bank loans are secured by charges over the freehold land and buildings.

14 �Creditors: amounts falling due after more than one year

2023 2022
£ £
Bank loans 421,211
 476,722

The Bank loans are secured by charges over the freehold land and buildings.

Bank loans include aggregate amounts of £206,294 (2022: £268,306) which fall due after five years and which are payable by instalments.

15 �Leases

�Operating leases - lessee

�Total future minimum lease payments under non-cancellable operating leases are as follows:

Not later than one year
Later than one and not later than five years		 2023
2022
£
£
37,167
47,500
5,333
42,500
42,500
90,000

16 �Contingent liabilities / assets

There are no contingent liabilities or assets (2022: £Nil).

25

Derwent Rural Counselling Service

Notes to the Financial Statements

For the Year Ended 31 March 2023

17 �Fund reconciliation

�Unrestricted funds

Balance at
1 April 2022
£
General
1,204,712
Designated
CYP Clinicians
50,000
Future infrastructure
development
250,000
300,000
Total
1,504,712
Balance at
1 April 2021
£
General
1,289,905
Designated
CYP Clinicians
-
Future infrastructure
development
250,000
250,000
Total
1,539,905		 Income
£
2,126,308
-
-
-
2,126,308
Income
£
2,015,929
-
-
-
2,015,929		 Expenditure
£
(2,010,290)
(50,000)

-
(50,000)
(2,060,290)
Expenditure
£
(2,051,122)

-

-

-
(2,051,122)		 Transfers
£
-
-

-
-
-
Transfers
£
(50,000)
50,000

-
50,000
-		 Balance at
31 March
2023
£
1,320,730

-
250,000
250,000
1,570,730
Balance at
31 March
2022
£
1,204,712
50,000
250,000
300,000
1,504,712

The designated funds are for young persons clinicians, fit out costs of new property and future infrastructure development.

26

Derwent Rural Counselling Service

Notes to the Financial Statements

For the Year Ended 31 March 2023

18 Analysis of net assets between funds

As at 31 March 2023
Fixed assets
Cash at bank and in hand
Current assets
Creditors due within one year
Creditors due after more than one year
Total
As at 31 March 2022
Fixed assets
Cash at bank and in hand
Current assets
Creditors due within one year
Creditors due after more than one year
Total		 Unrestricted
funds
£
803,438
844,450
212,569
(118,516)
(421,211)
1,320,730
Unrestricted
funds
£
926,643
647,109
212,521
(104,839)
(476,672)
1,204,762		 Designated
funds
£
-
250,000
-
-
-
250,000
Designated
funds
£
-
300,000
-
-
-
300,000		 Total
£
803,438
1,094,450
212,569

(118,516)

(421,211)
1,570,730
Total
£
926,643
947,109
212,521

(104,839)

(476,672)
1,504,762

19 Reconciliation of net income to net cash flow from operating activities

Net income/(expenditure) for the year
Interest receivable
Interest payable
Depreciation of tangible fixed assets
(Profit) on disposal
(Increase) in debtors
Increase/(decrease) in creditors
Net cash flow from operating activities		 2023
2022
£
£
66,018 (35,193)
(136)
(3)
19,338
19,513
16,416
27,218
(40,791)
-
(48)
269,361
11,589 (20,046)
72,386
260,850

27

Derwent Rural Counselling Service

Notes to the Financial Statements

For the Year Ended 31 March 2023

20 �Pensions and other post-retirement benefits

The charity operates a defined contribution pension plan for its employees. The amount recognised as an expense in the period was £49,605 (2022: £46,304).

21 �Financial commitments

There were no financial commitments at the year end other than operating leases disclosed at note 15.

22 �Related party transactions

Mrs Menna Yarwood, the Clinical Lead until 1 September 2021, who is married to Professor J Yarwood, a trustee of the charity until 28 October 2021, received salary, employment benefits and self employment income from the charity totalling £Nil (2022: £17,319). During the prior period she was a related party.

During the year £7,920 (2022: £8,580) of PR services were provided by Agent PR a company owned by Miss A Worsnip, a trustee of the charity.

28