The Consortium for Therapeutic Communities (TCTC) 2(A) Parkyn Road, Nottingham, NG5 6BG.
Company Number: 07710339 Charity Number: 1143955
Date: 2023
McCabe Ford Williams Chartered Accountants Charlton House Dour Street DOVER Kent CT16 1BL
Dear Sirs
The following representations are made on the basis of enquiries of management and staff with relevant knowledge and experience such as we consider necessary in connection with your report on the Charitable Company’s financial statements for the year ended 31 December 2022. These enquiries have included inspection of supporting documentation where appropriate. All representations are made to the best of our knowledge and belief.
GENERAL
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We acknowledge that the work performed by you is substantially less in scope than an audit performed in accordance with International Standards on Auditing (UK) and that you do not express an audit opinion.
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We confirm that the Charitable Company qualifies as small in accordance with the conditions set out in chapter 1 of part 15 of the Companies Act 2006.
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We confirm that the Charitable Company was entitled to exemption under section 477 of the Companies Act 2006 from the requirement to have its financial statements for the financial year ended 31 December 2022 audited. We also confirm that the members have not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476 of the Companies Act 2006.
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We have fulfilled our responsibilities as directors, as set out in the terms of your engagement letter dated 29 November 2013 under the Companies Act 2006, for preparing financial statements (which you have prepared on our behalf) in accordance with applicable law and United Kingdom Accounting Standards (UK Generally Accepted Accounting Practice), and for being satisfied that they give a true and fair view.
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All the transactions undertaken by the Charitable Company have been properly reflected and recorded in the accounting records.
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All the accounting records and related financial information, including minutes of all management and shareholders’ meetings have been made available to you for the purpose of your work.
ASSETS AND LIABILITIES
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The Charitable Company has satisfactory title to all assets and there are no liens or encumbrances on the Company’s assets, except for those that are disclosed as applicable in the notes to the financial statements.
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At the balance sheet date there were no material commitments under contracts placed for capital expenditure.
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The current assets shown in the Balance Sheet are all expected to produce on realisation in the ordinary course of business at least the amounts at which they are stated.
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All actual liabilities, contingent liabilities and guarantees given to third parties have been recorded or disclosed as applicable. The amounts treated in the Balance Sheet as provisions for liabilities, losses and diminution in value of assets are not greater than the sums reasonably required for those purposes.
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All income which arose up to the date of the Balance Sheet has been brought into account.
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The Balance Sheet includes all cash and bank accounts and all other assets of the Charitable Company required to be included therein.
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We have no plans or intentions that may materially alter the carrying value and where relevant the fair value measurements or classification of assets and liabilities reflected in the financial statements.
LOANS AND ARRANGEMENTS
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The Charitable Company has not granted any advances or credits to, or made guarantees on behalf of, directors other than those disclosed in the financial statements.
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The amounts disclosed in the financial statements as directors' remuneration are correctly stated and include all amounts received from the Charitable Company or any other person.
LEGAL CLAIMS
- We have disclosed to you all claims in connection with litigation that have been, or are expected to be, received and such matters, as appropriate, have been properly accounted for and disclosed as applicable in the financial statements.
LAWS AND REGULATIONS
- We have disclosed to you all known instances of non-compliance or suspected non-compliance with laws and regulations whose effects should be considered when preparing the financial statements.
RELATED PARTIES
- Related party relationships and transactions have been appropriately accounted for and disclosed as applicable in the financial statements. We have disclosed to you all relevant information concerning such relationships and transactions and are not aware of any other matters which require disclosure in order to comply with the requirements of company law or accounting standards.
SUBSEQUENT EVENTS
- All events subsequent to the date of the financial statements which require adjustment or disclosure have been properly accounted for and disclosed as applicable.
INTERNAL CONTROL AND FRAUD
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We acknowledge our responsibility for the design, implementation and maintenance of internal control systems to prevent and detect fraud and error. We have disclosed to you the results of our risk assessment that the financial statements may be misstated as a result of fraud.
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We have disclosed to you all instances of known or suspected fraud affecting the entity involving management, employees who have a significant role in internal control or others that could have a material effect on the financial statements.
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We have also disclosed to you all information in relation to allegations of fraud or suspected fraud affecting the entity’s financial statements communicated by current or former employees, analysts, regulators or others.
GOING CONCERN
- We believe that the Charitable Company's financial statements should be prepared on a going concern basis on the grounds that current and future sources of funding or support will be more than adequate for the Charitable Company's needs. We have considered a period of twelve months from the date of approval of the financial statements. We believe that no further disclosures relating to the Charitable Company's ability to continue as a going concern need to be made in the financial statements.
FUNDS
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There were no restricted funds during the year.
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There were no designated funds at the year end.
Yours faithfully
Signed on behalf of the board of directors by
........................................................................ K N Gallagher, Director
REGISTERED COMPANY NUMBER: 07710339 (England and Wales) REGISTERED CHARITY NUMBER: 1143955
REPORT OF THE TRUSTEES AND
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
FOR
THE CONSORTIUM FOR THERAPEUTIC COMMUNITIES (TCTC)
McCabe Ford Williams Chartered Accountants Charlton House Dour Street DOVER Kent CT16 1BL
THE CONSORTIUM FOR THERAPEUTIC COMMUNITIES (TCTC)
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 3 |
| Independent Examiner's Report | 4 | ||
| Statement of Financial Activities | 5 | ||
| Balance Sheet | 6 | ||
| Notes to the Financial Statements | 7 | to | 9 |
| Detailed Statement of Financial Activities | 10 |
THE CONSORTIUM FOR THERAPEUTIC COMMUNITIES (TCTC)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2022. 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 Republic of Ireland (FRS 102) (effective 1 January 2019).
OBJECTIVES AND ACTIVITIES
Objectives and aims
The objects of the charity are to relieve the needs of people who have suffered emotional trauma and mental health difficulties which can be treated in therapeutic communities and therapeutic environments. The charity does this by developing the standard and quality of service in therapeutic settings, and promoting awareness, education and research related to these services amongst health professionals, service providers and the public.
Public benefit
The trustees confirm that they have complied with the duties in Section 4 of the Charities Act 2011 to have due regard to the Charity Commission's general guidance on public benefit.
The trustees have referred to the guidance in the Charity Commission 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 that they have set.
ACHIEVEMENT AND PERFORMANCE
2022 was a positive year overall as we emerged from the challenges of the pandemic (which has very significantly depleted our reserves). 2022 was something of a 'turnaround' year overall. We undertook a number of things to begin to strengthen our finances - a new membership fee structure was introduced at the start of the year, the TCTC Children's Network remained very active and generated a small surplus from its events, but also a bigger shared surplus from the online conference with Glyndwr University. The TCTC R+D group also ran a successful online event generating surplus, and (supported by some supportive underwriting from key member organisations) ran and delivered a very successful 3 day face to face conference. This generated a healthy surplus for the final quarter of the year. Internally we have seen new board members join, extending both lived experience and international representation, there has been good progress on communications strategy preparations and we have been active in 2022 in maintaining visibility, especially in the children's sector landscape which is relevant to approximately 50% of our membership. As we began to improve the finances, we took the necessary decision to invest £5k to create a new website to give a better experience for members but more importantly to ensure functionality for membership and event sales.
FINANCIAL REVIEW
Investment policy and objectives
Under the Memorandum and Articles of Association, the charity has the power to invest in any way the trustees wish. The trustees, having regard to the reserves policy, have operated a policy of keeping available funds in an interest bearing deposit.
Reserves policy
The trustees have acknowledged that costs for the charity are stable and there is little risk of significant unanticipated expenditure. Reserves of £10,000 are deemed sufficient to mitigate financial risks. Free income reserves at 31 December 2022 amounted to £3,220 (2021 - £3,557).
FUTURE PLANS
2023 will be a continued consolidation of the work in 2022 and the key objective is to strengthen reserves over the next two years to a position where we hold one years running costs in reserve. We are creating a calendar of events (mainly online) to boost income, we will be repeating our annual face to face event at its new more cost effective venue and there will be some targeted membership recruitment. The preparation work on communications from 2022 will be rolled out to help with visibility, and event and membership recruitment. We will also explore some modest and targeted marketing activity - again to promote income generating activities. We will maintain our Journal - but there will be a planned change of Editor and we will seek to renegotiate the contract with the publisher, including some discussion about effective use of online access (a key member benefit). We are also appointing a new Treasurer.
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THE CONSORTIUM FOR THERAPEUTIC COMMUNITIES (TCTC)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The Consortium for Therapeutic Communities (TCTC) is a company limited by guarantee governed by its Memorandum and Articles of Association dated 19 July 2011. On 23 September 2011 it was registered as a charity with the Charity Commission. Membership of the charity is at the discretion of the trustees.
Recruitment and appointment of new trustees
At each AGM one third of the trustees will retire from office. Retiring trustees may be reappointed. New trustees must be recommended by existing trustees or be proposed by members.
Trustees have been appointed on the basis of the relevant expertise that they can bring to the board. All trustees have experience of membership of or working in a therapeutic community or a therapeutic environment. The board includes representatives from a variety of relevant sectors and specialisms.
Organisational structure
The board of trustees, which must be three or more, administers the charity. The board meets at least three times per annum and more frequently if necessary. Three of the trustees have been given responsibility to manage the day to day affairs of the charity including its finance.
Other trustees provide support based on their professional expertise as necessary. One of the trustees owns a company which provides administration services to the charity and one of the trustees provides oversight to the administration service.
Risk management
The major risks to which the charity is exposed have been reviewed and systems established to mitigate those risks.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number
07710339 (England and Wales)
Registered Charity number
1143955
Registered office
2 (A) Parkyn Road NOTTINGHAM NG5 6BG
Trustees
P D Clarke K N Gallagher M Staines C Nicholson (appointed 20.9.22) S J Paget de le Fosse P V Cockersell J A Dilallo N Khawani-Connett (appointed 30.9.22) B I Thibaut (appointed 30.9.22) M Clutton (appointed 7.10.22) (resigned 7.2.23)
Company Secretary
P D Clarke
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THE CONSORTIUM FOR THERAPEUTIC COMMUNITIES (TCTC)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022
REFERENCE AND ADMINISTRATIVE DETAILS
Independent Examiner
McCabe Ford Williams Chartered Accountants Charlton House Dour Street DOVER Kent CT16 1BL
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
Approved by order of the board of trustees on ............................................. and signed on its behalf by:
........................................................................
K N Gallagher - Trustee
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INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE CONSORTIUM FOR THERAPEUTIC COMMUNITIES (TCTC)
Independent examiner's report to the trustees of The Consortium for Therapeutic Communities (TCTC) ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2022.
Responsibilities and basis of report
As the charity's trustees of the Company (and also 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 your charity's accounts as 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.
Ian Pascall FCA McCabe Ford Williams Chartered Accountants Charlton House Dour Street DOVER Kent CT16 1BL
Date: .............................................
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THE CONSORTIUM FOR THERAPEUTIC COMMUNITIES (TCTC)
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2022
| 2022 Unrestricted fund Notes £ INCOME AND ENDOWMENTS FROM Donations and legacies 930 Charitable activities Therapeutic communities 64,125 Investment income 3 11 Total 65,066 EXPENDITURE ON Charitable activities Therapeutic communities 65,403 NET INCOME/(EXPENDITURE) (337) RECONCILIATION OF FUNDS Total funds brought forward 3,557 TOTAL FUNDS CARRIED FORWARD 3,220 |
2021 Total funds £ 1,547 26,464 - 28,011 34,714 (6,703) 10,260 3,557 |
|---|---|
The notes form part of these financial statements
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THE CONSORTIUM FOR THERAPEUTIC COMMUNITIES (TCTC)
BALANCE SHEET 31 DECEMBER 2022
| Notes CURRENT ASSETS Debtors 5 Cash at bank CREDITORS Amounts falling due within one year 6 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS 7 Unrestricted funds TOTAL FUNDS |
2022 Total funds £ 10,486 2,363 12,849 (9,629) 3,220 3,220 3,220 3,220 3,220 |
2021 Total funds £ 2,803 7,393 10,196 (6,639) 3,557 3,557 3,557 3,557 3,557 |
|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2022.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2022 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
- (b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:
............................................. K N Gallagher - Trustee
The notes form part of these financial statements
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THE CONSORTIUM FOR THERAPEUTIC COMMUNITIES (TCTC)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
1. STATUTORY INFORMATION
The Consortium of Therapeutic Communities is an incorporated charitable company, limited by guarantee, registered in England and Wales. In the event of the charitable company being wound up any property remaining would be given to another charity with similar objects and if no property remained, the liability of the members would be limited to £10 each.
The charitable company's registered number, registered office address and nature of operations can be found in the Report of the Trustees.
There are no material uncertainties that may cast significant doubt on the charitable company's ability to continue as a going concern.
2. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, 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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Donations, legacies and other forms of voluntary income are recognised as incoming resources when receivable.
Members subscriptions are recognised when received.
Grants are included as income when they are receivable. Grants are considered receivable when there is evidence of entitlement.
Expenditure
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.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
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.
continued...
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THE CONSORTIUM FOR THERAPEUTIC COMMUNITIES (TCTC)
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022
3. INVESTMENT INCOME
| INVESTMENT INCOME | |||
|---|---|---|---|
| 2022 | 2021 | ||
| £ | £ | ||
| Deposit account interest | 11 | - |
4. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 December 2022 nor for the year ended 31 December 2021.
Trustees' expenses
During the year one trustee received expenses amounting to £NIL (2021 - £13).
5. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| 2022 2021 £ £ Sundry debtors 10,486 2,803 6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2022 2021 £ £ Trade creditors 7,843 3,371 Social security and other taxes 466 466 Accrued expenses 1,320 2,802 9,629 6,639 7. MOVEMENT IN FUNDS Net movement At At 1.1.22 in funds 31.12.22 £ £ £ Unrestricted funds General fund 3,557 (337) 3,220 TOTAL FUNDS 3,557 (337) 3,220 Net movement in funds, included in the above are as follows: Incoming Resources Movement resources expended in funds £ £ £ Unrestricted funds General fund 65,066 (65,403) (337) TOTAL FUNDS 65,066 (65,403) (337) |
2021 £ 2,803 |
|
|---|---|---|
| 2021 £ 3,371 466 2,802 |
||
| 6,639 | ||
| (337) |
continued...
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THE CONSORTIUM FOR THERAPEUTIC COMMUNITIES (TCTC)
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022
7. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| Net | ||
|---|---|---|
| movement | At | |
| At 1.1.21 | in funds | 31.12.21 |
| £ | £ | £ |
| Unrestricted funds | ||
| General fund 10,260 |
(6,703) | 3,557 |
| TOTAL FUNDS 10,260 |
(6,703) | 3,557 |
| Comparative net movement in funds, included in the above are as follows: | ||
| Incoming | Resources | Movement |
| resources | expended | in funds |
| £ | £ | £ |
| Unrestricted funds | ||
| General fund 28,011 |
(34,714) | (6,703) |
| TOTAL FUNDS 28,011 |
(34,714) | (6,703) |
8. RELATED PARTY DISCLOSURES
During the year directors and companies related to them, were invoiced £6,550 (2021 - £2,121) by the charitable company for membership subscriptions, training and conference attendance and at the year end £1,265 (2021 - £72) was outstanding.
During the year companies related to the directors invoiced the charitable company £144 (2021 - £402) for administrative expenses and at the year end £NIL (2021 - £144) was outstanding.
Donations totalling £NIL (2021 - £78) were received from the directors.
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THE CONSORTIUM FOR THERAPEUTIC COMMUNITIES (TCTC)
DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| INCOME AND ENDOWMENTS | ||
| Donations and legacies | ||
| Donations | 930 | 1,547 |
| Investment income | ||
| Deposit account interest | 11 | - |
| Charitable activities | ||
| Annual conferences | 35,944 | 1,498 |
| Membership subscriptions | 24,647 | 17,573 |
| Group meetings and training | 3,055 | 4,848 |
| Individual journal sales and royalties | 479 | 1,906 |
| Other income | - | 639 |
| 64,125 | 26,464 | |
| Total incoming resources | 65,066 | 28,011 |
| EXPENDITURE | ||
| Charitable activities | ||
| Conference costs | 23,165 | 727 |
| Group meetings and training costs | 1,110 | 835 |
| Cost of journals | 11,385 | 11,104 |
| Bad debts | - | 532 |
| 35,660 | 13,198 | |
| Support costs | ||
| Governance costs | ||
| Administration and book-keeping | 21,508 | 18,022 |
| Telephone, postage, stationery and advertising | 1,111 | 447 |
| Sundry expenses | 13 | 163 |
| Independent examiner's fee | 1,188 | 1,438 |
| Bank and credit card charges | 839 | 667 |
| Website design and maintenance | 5,084 | 779 |
| 29,743 | 21,516 | |
| Total resources expended | 65,403 | 34,714 |
| Net expenditure | (337) | (6,703) |
This page does not form part of the statutory financial statements
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