**Charity registration number 1144041**
**Company registration number 05523517 (England and Wales)**
## **TERAPIA**
## **ANNUAL REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2022**
## **TERAPIA**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|K E Malyali||
|---|---|---|
||A Ali||
||N J Rolli||
||L J Fuller||
||D Shah||
||R Alberto|(Appointed 26 January 2023)|
|**Charity number**|1144041||
|**Company number**|05523517||
|**Principal address**|Terapia Centre||
||17a East End Road||
||Finchley||
||London||
||N3 3QE||
|**Registered office**|17a East End Road||
||London||
||N3 3QE||
|**Auditor**|Citroen Wells||
||Chartered Accountants||
||Devonshire House||
||1 Devonshire Street||
||London||
||W1W 5DR||
|**Bankers**|Santander UK Plc||
||Customer Service Centre||
||Bootle||
||Merseyside||
||L30 4GB||
## **TERAPIA**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 5|
|Chief Executive's Report|6 - 8|
|Independent auditor's report|9 - 11|
|Statement of financial activities|12|
|Statement of cash flows|13|
|Statement of financial position|14|
|Notes to the financial statements|15 - 25|
## **TERAPIA**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
The trustees, who are also directors of the charitable company for the purpose of the Companies Act 2006, present their report and accounts for the year ended 31 December 2022.
The accounts have been prepared in accordance with the accounting policies set out in Note 1, the charitable company's Memorandum and Articles of Association, the Companies Act 2006 and “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**
The charitable company is a registered charity which exists to provide relief of the mental and emotional distress of children, adolescents, adults, carers and families in need of professional help, through counselling, psychotherapy, training, advice and support and to advance the education of the general public in all areas relating to child, adolescent and adult counselling and psychotherapy.
## **Public Benefit Statement**
The trustees confirm that they have complied with their duty in section 4 of the Charities Act 2011 to have regard to the Charity Commission's general guidance on public benefit, "Charities and Public Benefit".
**How Terapia's Activities Deliver Public Benefit** Terapia’s activities are geared to deliver public benefit in the following ways:
- by providing training for counsellors and psychotherapists, who then utilise their acquired knowledge and skills by providing a counselling and psychotherapy service for clients of differing ages and developmental backgrounds and from diverse social and cultural backgrounds who may present a wide range of emotional, developmental, social and behavioural issues;
- by offering low cost and free of charge counselling and psychotherapy to children, young people, parents and families. This comprehensive and wide-ranging service is provided pro bono by Terapia's trainees. The students' clinical work is supported by Terapia's tutors and clinical supervisors who are qualified Child and Adolescent Counsellors and Psychotherapists.
Terapia is a uniquely integrative school which, unlike most other existing training providers, explores all the leading approaches to Child Psychotherapy. The school is one of the first in the UK to offer training from this perspective. Most of the training takes place through weekly seminars, weekend lectures and tutorials. A balance of theoretical and experiential learning is offered at Terapia.
Terapia’s training function has been in operation for 20 years. The rapid growth of the organisation provides reassurance that Terapia is filling a need for such training and services in the country.
Terapia is an organisational member of the British Association for Counselling and Psychotherapy (BACP) and an accredited member of United Kingdom Council for Psychotherapy (UKCP). The courses are also validated by the Middlesex University.
- 1 -
## **TERAPIA**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **Achievements and performance**
## **Reports of Officers and Committees 1 January 2022 to 31 December 2022**
Terapia’s Board of Trustees comprises volunteers who are legally responsible for the charity and ensuring the charity acts in line with its charitable purposes for the public benefit. They must ensure that the charity complies with the charities governing documents and the law and is accountable. They also oversee the management of the charity’s resources.
There are currently 6 Board members who meet on a regular basis, acting in Terapia’s best interests and abiding by the principles of accountability, integrity and honesty and transparency
The Board of Trustees met three times in 2022. Minutes are provided for meetings on 14 March and on 8 September. The Board meeting on 6 June was inquorate and no minutes were taken.
## **Ethics Committee Report**
Terapia’s Ethics and Complaints Committee is responsible for assuring the ethical conduct and principles of Terapia’s students, supervisors, tutors and graduates. Our aim is to ensure that Terapia’s policies and procedures are up-to-date, maintain good standards of practice in accordance with government policy and legislation as it relates to children and young persons and UKCP guidelines, and meets the needs and circumstances specific to psychotherapeutic work with children. Our main function is to assist Terapia and to resolve complicated ethical matters in a timely and respectful manner.
The Committee should consist of three members, one of which should be a child psychotherapy practitioner and one person could be an administrator employed by Terapia. The Committee meets and holds discussions on a termly basis, or more frequently, if required.
Following resignations of previous committee members in 2021, the Ethics Committee, comprising three new members, met for a preliminary discussion. However there was a potential conflict of interest with one of the new members recruited, and unfortunately the committee did not meet again. It has been difficult finding further new members in order for the committee to be reinstated.
There were no complaints against Terapia in 2022.
## **Financial review**
Details of income and expenditure for the year are shown on page 12. The trustees are pleased with the financial position and performance, given the uncertainty faced as a result of Covid and the recent cost of living crisis.
Incoming resources amounted to £1,281,934, a gain of £43,933 when compared to the previous year. The costs of managing the charitable company were £1,304,278 for the year as opposed to £1,214,674 for the previous year.
## **Reserves Policy**
The trustees have established a policy whereby the charitable company aspires to maintain unrestricted funds equivalent to at least three months of average operating costs. The trustees also regularly monitor and review the level of free resources available to the charitable company. The total unrestricted funds at the balance sheet date were £245,837 (2021: £200,163). The restricted funds held at the balance sheet date totalled £1,638,240, (2021: £1,706,258).
## **Investment Policy**
The trustees have considered the most appropriate policy for investing funds and this will be in bank deposit accounts which will ensure the funds are readily available at all times.
- 2 -
## **TERAPIA**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **Risk Review**
The trustees have conducted their own review of the major risks to which the charitable company is exposed and systems have been established to mitigate those risks. The trustees have not identified any major risk with regards to future income streams. Internal risks are minimised by the implementation of procedures for authorisation of all transactions and projects and to ensure consistent quality for all operational aspects of the charitable company. These procedures will be periodically reviewed to ensure that they still meet the requirements of the charitable company. The charitable company's policies proved robust in the face of the challenges raised by Covid and recent escalations in the cost of living. Aging IT and Telephone infrastructure continues to prove a challenge and improvements are under review by the Board.
## **Plans for the future**
## **Terapia Training Branch:**
- To prepare and successfully pass re-accreditation by Middlesex University. A new training programme has been proposed.
- To prepare for and implement the new MA training programme agreed with Middlesex University to start in 2024
- To continue to recruit new core staff for the training (tutors, clinical and observation supervisors)
- To increase take up of Senior Mental Health Lead Training and increase the numbers of trained Senior Mental Health Leads
## **Terapia Clinical Services:**
- To develop further and expand provision of Terapia’s clinical services
- To offer each student a clinical placement as part of their training.
- To strengthen the current infrastructure of the service by reviewing existing policies
- To further develop group therapy service in accordance with Terapia’s bespoke group program
- To secure funding for the next phase of the Whole School Approach Project (WSA) for improving mental health and wellbeing in five local schools
## **Terapia Centre**
- To ensure the Sensory Room is utilised, by promoting it via advertising and marketing
- To increase the number of clients at the Bothy.
- To fully utilise new premises identified
## **Structure, governance and management**
Terapia is a charitable company limited by guarantee without share capital.
The charitable company was incorporated on 1 August 2005 and is governed by the revised Memorandum and Articles of Association adopted by special resolution and filed with Companies House on 21 September 2011, and the Charities Act 2011. It was registered as a charity with the Charity Commission on 29 September 2011.
The trustees, who are also the directors for the purpose of company law, and who served during the year were:
T Tasnim (Resigned 8 June 2022) L P Ross (Resigned 8 September 2022) K E Malyali A Ali N J Rolli L J Fuller B Allahvaisi (Resigned 8 September 2022) F J Keeley (Resigned 8 September 2022) D Shah R Alberto (Appointed 26 January 2023)
- 3 -
## **TERAPIA**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **Recruitment and Appointment of Management Committee**
The charitable company's trustees are also directors of the charitable company for the purposes of charity law and under the Company’s Articles are known as members of the Management Committee. Under the requirements of the Company’s Articles the members of the Management Committee are elected to serve for a period of one year, after which, if still willing to serve, they must be re-elected at the next Annual General Meeting.
All trustee members of the Management Committee give their time voluntarily and receive no benefits from the charitable company, other than as disclosed in Note 8 of the accounts.
Two of the trustees are Terapia trained therapists who ensure the Management Committee remains focused on the practicalities of achieving the charitable company's aims.
## **Governance**
**Corporate governance**
**and**
**decision**
**making**
The Board of trustees continually keeps the operation and effectiveness of the governance structure under review. Strategic and operational planning, risk management, and budget planning processes are in place and reviewed annually.
The Chief Executive Officer is responsible for the day to day running of the organisation. Her work is supported by the Training Director, Training Clinical Lead and a PA. An Academic Coordinator also provides administrative support to teaching staff and students.
All decision making of the training branch of the organisation takes place within the Training Committee. This also provides quality assurance for all aspects of the course. The committee comprises the core training staff - the CEO, Director of Training and Training Clinical Lead.
All decision making for the Therapeutic Services takes place within the Services Committee which consists of the CEO, Services Clinical Lead and the Head of School Services and Development. Terapia's organisational activities are supported by the Ethics Committee.
The regular reviews and audits conducted by the United Kingdom Council for Psychotherapy (UKCP) and Middlesex University provide assurance on Terapia’s professional activities, with risk management and control systems in operation, as well as providing an input to continuous improvement processes. A UKCP Review took place in 2022 which Terapia successfully passed.
## **Clinical**
**governance**
Terapia’s Training and Services Clinical Leads and Ethics Committee, in conjunction with internal clinical supervisors, provide a quality of service which meets the changing demands of law, regulation and standards of best practice related to child and adolescent mental health. They implement appropriate evidence based performance standards and have a regular evaluation of the service systems in place.
The Training Committee comprises the core training staff. The Training Committee is a decision-making body and provides quality assurance for all aspects of the course.
## **Trustee Induction and Training**
Trustees are already familiar with the operational work of the charitable company, and have extended their knowledge through reading the charitable company’s training and information literature as well as through discussion sessions with the CEO and other staff.
## **Fundraising**
The Bothy Shop continues to raise funds for the charity. The Trustees would like to acknowledge the generosity of those who donated and bought goods and would like to thank the shop staff and volunteers who generously give up their time to help out in the charity shop, which helps to generate much needed income that's used for our charitable objectives.
We are also grateful for financial donations and grants made. All money received will be used to further our charitable purposes, subject to restrictions imposed by the donors.
- 4 -
## **TERAPIA**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **Statement of trustees' responsibilities**
The trustees, who are also the directors of Terapia for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Auditor**
In accordance with the company's articles, a resolution proposing that Citroen Wells be reappointed as auditor of the company will be put at a General Meeting.
## **Disclosure of information to auditor**
Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.
The trustees' report was approved by the Board of Trustees.
## **D Shah**
Trustee Dated: 26 September 2023
- 5 -
## **TERAPIA**
## **CHIEF EXECUTIVE'S REPORT** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **Report from Bozena Merrick, CEO and Founder.**
In 2022 all Terapia’s activities returned to their status pre-COVID with in-person teaching, supervision, observation studies and the provision of psychotherapeutic services resuming face to face and to the pre-pandemic standards. However, majority of students are behind with their coursework and the pandemic had a detrimental effect on their personal and professional development.
Clients returned to having therapy in person at The Bothy Centre. The continued surge in mental health issues, linked to isolation during Covid 19 has led to increased demand for our therapeutic services, highlighting the importance of the work we do and the difference this makes to peoples’ lives and their futures. In the later part of 2022, we identified new premises to enable us to expand our training and the services we deliver.
## **Bothy Centre and Terapia Services**
The Bothy, our Victorian Grade II Listed Building, in the grounds of Stephen’s House and Gardens in Finchley, North London is a shared community space devoted to both education and psychotherapeutic and counselling provision for children, young people and families. The centre cares for children of all ages, races and cultures, special/additional needs, who live in the Barnet area and North London and need specialist psychological help.
We are proud of the fantastic training facilities we offer at The Bothy, including a suite of therapy and play therapy rooms and a sensory room. The therapeutic environment begins when you enter through the Bothy Gardens and continues in the building when you pass the beautiful living walls. The centre is admired by trainees, tutors and clients and their families, enhancing both the teaching and therapeutic work we do.
The Therapeutic Services we offer are now all in-person at the Bothy, rather than being provided remotely. We have had a high volume of new client referrals as a result of the pandemic and worsening cost of living crisis. Our psychotherapy trainees who deliver therapy services are supervised in small groups and are also supported by our Clinical Lead, Sacha Richardson on clinical and management issues.
There is potential for the development of Terapia’s services. We have carried out an audit of rooms to improve them further and are aiming to maximise their use during all times of the day. The sensory room could also be used more in the future.
## **Terapia Training**
This year we had the United Kingdom Council for Psychotherapy (UKCP) Quinquennial Review of our training services. We passed this with flying colours, securing accreditation for the next five years. The feedback from the review was exceptionally positive. I would like to thank staff and others who were involved with preparing the paperwork for the review and who participated on the day, talking and meeting with the online UKCP Reviewers.
In 2021 we effectively recruited trainees to start in January 2022 filling both our daytime and evening cohorts, thus ensuring another financially successful year for Terapia. Some students have not continued into the later modules but these groups remain financially viable as employing less supervisors for the cohort reduces the overall training costs for this group. In 2022 recruitment for 2023 was further stepped up. Advertising channels included a leaflet drop throughout North London, Therapy magazines and the Mind Body & Spirit Festival. By Autumn 2022, Module 1 of our course was completely full for both the daytime and evening training, with 40 new students starting in January 2023.
We have continued to need to recruit new tutors and supervisors, but overall, there has been greater staff stability this year. We also successfully recruited for a PA to the CEO and for the Academic Coordinator position to support the Director of Training.
This year we ran our Supervision training programme on a weekday (rather than weekends as previously). Sufficient numbers made the course break even, but in future we will revert to holding the course on a weekend which we have found is more popular with psychotherapists.
We are looking at changing our MA programme and starting work on this in 2023. In October 2023 we are holding a Validation event with Middlesex University.
- 6 -
## **TERAPIA**
## **CHIEF EXECUTIVE'S REPORT** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **Terapia School Services**
In 2022 Terapia School Services (TSS) continued its growth and is an amazing success. The number of schools participating continues to increase, including many secondary schools in the North London area and Hertfordshire. Our Schools Services Coordinator in 2022, Pamela Butler, worked closely with each individual school and supported Terapia’s therapists in meeting the mental health needs of the children and young people they worked with.
TSS also continued to run the Whole School Approach (WSA) project, funded by John Lyon’s Charity for improving mental health and wellbeing in five local schools. The project has been overseen by Pamela Butler.
Our trainees also worked in three organisations:
- Onwards and Upwards (Leaving Care children)
- The London Fire Brigade - providing supervision for Fire Brigade professionals supporting Young People (8-18 years) who are fire setters.
- Barnet Specialist Autism Service – providing clinical supervision
## **Senior Mental Health Lead training programme**
We have also been delivering a Senior Mental Health Leaders course, both in person and on Zoom. This course was approved and accredited by the Carnegie School of Education, Leeds Beckett University, and is delivered by Pamela Butler and Jonathan Block on behalf of Terapia, with consistently excellent feedback from participants who are largely drawn from the educational sector.
## **The Bothy Charity Shop**
The Bothy Charity Shop in North Finchley continues to thrive and bring in income to the charity. It is now well established in the local community, helping to promote the Charity, advertise the courses we offer and saving the planet by upcycling and re-using goods. The shop employs three member of staff and has a number of volunteers. There were some changes to personnel in 2022, including a new Manager.
## **Events**
A group from Terapia, including myself and some tutors, presented papers and led workshops at a Psychotherapy conference in Lausanne, Switzerland which was organised by the Society for the Exploration of Psychotherapy Integration. At this event, we met with people interested in working as child and adolescent psychotherapists, raising the profile of Terapia and child psychotherapy in general.
## **Risks and Mitigations**
As the current cost of living crisis is escalating, we an identify the following risks to the organisation:
## Terapia Training:
Risks:
1. Students struggling to finance their course as their living expenses increase
2. Pressures on staffing costs as the result of lower number of students
## Bothy Centre
1. Increasing cost of utility bills affecting premises
2. Lower number of external hirers effecting the overall income from the Centre
- 7 -
## **TERAPIA**
## **CHIEF EXECUTIVE'S REPORT** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
How we plan to mitigate the risks:
## Terapia Training:
1. If student numbers drop, the training allows for flexibility to employ less contractors, to offset the decrease in income. We can also look to replace students who could drop out by further recruitment.
1. Closely monitoring student numbers to help budgeting for staff costs.
## Bothy Centre:
3. The contract for both electricity and gas was renewed with British Gas on 18 June 2022 for two years, protecting us from any rising prices for the next two years.
4. To increase the number of trainees working with clients at the Bothy to replace the number of external hirers as there is much higher income from trainees working than from room hire.
## **Conclusion**
I am proud of Terapia and of our many achievements over the year and am grateful for the dedication and continued support of Terapia’s teaching and admin staff throughout the year.
Thank you to both our previous Chair of Trustees Laurence Ross and our current Chair, Dipen Shah and the Board of Trustees for their ongoing support.
**Bozena Merrick (Gmerek) Chief Executive Officer and Clinical Director Terapia Dated: 26 September 2023**
- 8 -
## **TERAPIA**
## **INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF TERAPIA**
## **Opinion**
We have audited the financial statements of Terapia (the ‘charity’) for the year ended 31 December 2022 which comprise the statement of financial activities, the statement of financial position, the statement of cash flows and notes to the financial statements, including 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:
- give a true and fair view of the state of the charitable company's affairs as at 31 December 2022 and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **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 charity 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 charity’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.
## **Other information**
The other information comprises the information included in the 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 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 themselves. 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.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
- 9 -
## **TERAPIA**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF TERAPIA**
## **Responsibilities of trustees**
As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose 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 charity’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 as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. Our approach was as follows:
- We obtained an understanding of the legal and regulatory frameworks that are applicable to the Charity and determined that the most significant are those that relate to the reporting framework being the 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 (FRS102), the charitable company's Memorandum and Articles of Association, the Charities Act 2011, and the safe guarding legislation.
- We understood how the Charity is complying with those frameworks by making enquiries of management and seeking representations from those charged with governance. We corroborated our understanding by reviewing supporting documentation including trustee meeting minutes.
- We assessed the susceptibility of the Charities’s financial statements to material misstatement, including how fraud might occur by considering the risk of management override of internal control and by designating revenue recognition as a fraud risk. We performed journal entry testing by specific risk criteria, with a focus on journals indicating large or unusual transactions based on our understanding of the entity. We tested completeness of income through substantive tests performed and cut off tests on the revenue recognised.
- Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved enquiries of management and those charged with governance, review of legal and professional expenses and review of trustee meeting minutes.
- The Charity is a regulated entity under the supervision of the Charities Commission. As such, the Senior Statutory Auditor considered the experience and expertise of the engagement team to ensure that the team had the appropriate competence and capabilities.
- 10 -
## **TERAPIA**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF TERAPIA**
## **Use of our report**
This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
## **Citroen Wells**
26 September 2023
**Chartered Accountants Statutory Auditor**
Devonshire House 1 Devonshire Street London W1W 5DR
Citroen Wells is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
- 11 -
## **TERAPIA**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2022**
**Notes**
**£**
**£**
**Income and**
**endowments from:**
Donations and legacies
**2**
39
-
Charitable activities
**4**
1,194,879
10,500
Other trading activities
**3**
76,516
-
Other income
**5**
-
-
**Total income**
1,271,434
10,500
**Expenditure on:**
Charitable activities
**6**
1,225,760
78,518
Gross transfers between
funds
-
-
**Net income/(expenditure) for**
**the year/**
**Net movement in funds**
45,674
(68,018)
Fund balances at 1
January 2022
200,163
1,706,258
**Fund balances at 31**
**December 2022**
245,837
1,638,240|**Total**
Unrestricted
funds
**2022**
2021
**£**
**£**
39
26
1,205,379
1,029,226
76,516
56,539
-
12,160
1,281,934
1,097,951
1,304,278
1,134,353
-
(26,675)
(22,344)
(63,077)
1,906,421
263,240
1,884,077
200,163|Restricted
funds
2021
**£**
50
140,000
-
-
140,050
80,321
26,675
86,404
1,619,854
1,706,258|Total
2021
**£**
76
1,169,226
56,539
12,160|
|---|---|---|---|
||||1,238,001|
||||1,214,674|
||||-
23,327
1,883,094|
||||1,906,421|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
- 12 -
## **TERAPIA**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
|**Notes**
**Cash flows from operating activities**
Cash generated from operations
**18**
**Investing activities**
Purchase of property, plant and equipment
**Net cash used in investing activities**
**Net cash used in financing activities**
**Net increase/(decrease) in cash and cash**
**equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2022**
**£**
(755)|**£**
141,134
(755)
-
140,379
285,416
425,795|**2021**
**£**
(26,675)|**£**
9,435
(26,675)
-
(17,240)
302,656
285,416|
|---|---|---|---|---|
- 13 -
## **TERAPIA**
## **STATEMENT OF FINANCIAL POSITION**
## _**AS AT 31 DECEMBER 2022**_
|**Notes**
**Fixed assets**
Property, plant and equipment
**11**
**Current assets**
Trade and other receivables
**12**
Cash at bank and in hand
**Current liabilities**
**13**
Net current assets
**Total assets less current liabilities**
**Income funds**
Restricted funds
**14**
Unrestricted funds|**2022**
**£**
**£**
1,614,740
113,346
425,795
539,141
(269,804)
269,337
1,884,077
1,638,240
245,837
1,884,077|**2021**
**£**
**£**
1,641,662
142,058
285,416
427,474
(162,715)
264,759
1,906,421
1,706,258
200,163
1,906,421|**2021**
**£**
**£**
1,641,662
142,058
285,416
427,474
(162,715)
264,759
1,906,421
1,706,258
200,163
1,906,421|
|---|---|---|---|
||||1,906,421|
||||1,706,258
200,163|
||||1,906,421|
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2022, although an audit has been carried out under section 144 of the Charities Act 2011.
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of the financial statements.
The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on 26 September 2023
K E Malyali D Shah **Trustee Trustee**
## **Company Registration No. 05523517**
- 14 -
**NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **TERAPIA**
## **1 Accounting policies**
## **Charity information**
Terapia is a private company limited by guarantee incorporated in England and Wales. The registered office is at 17a East End Road, London, N3 3QE.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charitable company's Memorandum and Articles, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charitable company is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.
The accounts have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
## **1.2 Prior period error**
The comparative financial statements, covering the year ended 31 December 2021, have been restated for the understatement of deferred income at the prior year end by £23,365. As a result, the profit and the net assets for the year had been overstated by £23,365.
## **1.3 Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future, as course enrolments for 2023 and beyond are budgeted to continue to cover the charitable company's stable cost base. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.4 Charitable funds**
## _**Restricted funds**_
Restricted funds are to be used for the specific purpose as laid down by the donor. Expenditure which meets this criteria is charged to the fund, together with a fair allocation of management and support costs, where applicable.
## _**Unrestricted funds**_
Unrestricted funds are donations and other incoming resources receivable or generated from the objects of the charity without further specified purpose and are available as general funds.
## **1.5 Income**
Incoming resources from training, delivery of services and related activities is included on the Statement of Financial Activities when receivable.
Voluntary income received by way of donations and gifts is included in full in the Statement of Financial Activities when receivable. The value of services provided by volunteers has not been included.
Goods donated to the charity shop are recognised at their fair value when material, however where it is not possible to assess the value of goods donated, as they are low value items which cannot be reliably measured, no income is recognised until the goods are sold.
- 15 -
## **TERAPIA**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **1 Accounting policies**
## **(Continued)**
Charitable grants, including any grants for the purchase of fixed assets, are recognised in the statement of Financial Activities in the year in which they are receivable. For grants or donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the grant or donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfillment of those conditions is within the control of the charity and it is probable that they will be fulfilled.
## **1.6 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Outgoing resources are recognised in the period in which they are incurred. Resources expended include any attributable VAT which cannot be recovered. Support costs are allocated between charitable activities based on the percentage of total costs.
## **1.7 Property, plant and equipment**
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The Bothy Over the 75 year period of the lease Fixtures, fittings & equipment 20% per annum on a reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
## **1.8 Impairment of non-current assets**
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
## **1.9 Cash and cash equivalents**
Cash and cash equivalents include cash in hand and deposits held at call with banks.
- 16 -
## **TERAPIA**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **1 Accounting policies**
## **(Continued)**
## **1.10 Financial instruments**
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including trade and other payables and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
## **1.11 Employee benefits**
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.12 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
## **2 Donations and legacies**
||**Unrestricted**|Unrestricted|Restricted|Total|
|---|---|---|---|---|
||**funds**|funds|funds||
||**2022**|2021|2021|2021|
||**£**|£|£|£|
|Donations and gifts|39|26|50|76|
- 17 -
## **TERAPIA**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **3 Other trading activities**
|Shop income
**Charitable activities**
**Unrestricted**
**funds**
**2022**
**£**
Delivery of services
-
Course fees
1,194,879
Grant income
-
1,194,879
Analysis by fund
Unrestricted funds
1,194,879
Restricted funds
-
1,194,879|**Restricted**
**funds**
**2022**
**£**
10,500
-
-
10,500
-
10,500
10,500|**Total**
**2022**
**£**
10,500
1,194,879
-
1,205,379
1,194,879
10,500
1,205,379|**Unrestricted**
Unrestricted
**funds**
funds
**2022**
2021
**£**
£
76,516
56,539
**Restricted**
**funds**
**Unrestricted**
**funds**
**Total**
**2021**
**2021**
**2021**
**£**
**£**
**£**
7,000
-
7,000
-
1,029,226
1,029,226
133,000
-
133,000
140,000
1,029,226
1,169,226
-
1,029,226
1,029,226
140,000
-
140,000
140,000
1,029,226
1,169,226|**Unrestricted**
Unrestricted
**funds**
funds
**2022**
2021
**£**
£
76,516
56,539
**Restricted**
**funds**
**Unrestricted**
**funds**
**Total**
**2021**
**2021**
**2021**
**£**
**£**
**£**
7,000
-
7,000
-
1,029,226
1,029,226
133,000
-
133,000
140,000
1,029,226
1,169,226
-
1,029,226
1,029,226
140,000
-
140,000
140,000
1,029,226
1,169,226|
|---|---|---|---|---|
|||||**Total**
**2021**
**£**
7,000
1,029,226
133,000|
|||||1,169,226|
|||||1,029,226
140,000|
|||||1,169,226|
## **4 Charitable activities**
- 18 -
## **TERAPIA**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **5 Other income**
|Government grants
**Charitable activities**
Staff costs
Direct expenditure
Support and governance
costs (see note 7)
**Analysis by fund**
Unrestricted funds
Restricted funds|**Direct**
**Training**
**costs**
**Fundraising**
**costs**
**The Bothy**
**Renovation**
**work**
**2022**
**2022**
**2022**
**£**
**£**
**£**
121,186
22,833
-
531,988
40,463
23,093
653,174
63,296
23,093
466,897
42,393
-
1,120,071
105,689
23,093
1,120,071
105,689
-
-
-
23,093
1,120,071
105,689
23,093|**Unrestricted**
Unrestricted
**funds**
funds
**2022**
2021
**£**
£
-
12,160
**Whole**
**School**
**Approach**
**Total**
**2022**
Total
2021
**2022**
**£**
**£**
£
45,554
189,573
177,005
9,871
605,415
558,596
55,425
794,988
735,601
-
509,290
479,073
55,425
1,304,278
1,214,674
-
1,225,760
1,134,353
55,425
78,518
80,321
55,425
1,304,278
1,214,674|**Unrestricted**
Unrestricted
**funds**
funds
**2022**
2021
**£**
£
-
12,160
**Whole**
**School**
**Approach**
**Total**
**2022**
Total
2021
**2022**
**£**
**£**
£
45,554
189,573
177,005
9,871
605,415
558,596
55,425
794,988
735,601
-
509,290
479,073
55,425
1,304,278
1,214,674
-
1,225,760
1,134,353
55,425
78,518
80,321
55,425
1,304,278
1,214,674|
|---|---|---|---|
||||Total
2021
£
177,005
558,596|
||||735,601
479,073|
||||1,214,674|
||||1,134,353
80,321|
||||1,214,674|
## **6 Charitable activities**
## **For the year ended 31 December 2021**
|Staff costs
Direct expenditure
Share of support costs (see note 7)|**Direct**
**Training**
**costs**
**Fundraising**
**costs**
**The Bothy**
**Renovation**
**work**
**£**
**£**
**£**
104,389
27,062
-
484,669
39,160
23,030
589,058
66,222
23,030
430,658
48,415
-
1,019,716
114,637
23,030|**Whole**
**School**
**Approach**
**£**
45,554
11,737
57,291
-
57,291|**Total**
**2021**
**£**
177,005
558,596|
|---|---|---|---|
||||735,601
479,073|
||||1,214,674|
- 19 -
## **TERAPIA**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
|**6**
**Charitable activities**
**Analysis by fund**
Unrestricted funds
1,019,716
Restricted funds
-
1,019,716
**7**
**Support and governance costs**
**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Staff wages and salaries
163,373
-
Director's remuneration
98,148
-
Social security
42,217
-
Pensions
7,573
-
Rent
13,661
-
Insurance
6,241
Repairs and
maintenance
4,433
Advertising and
marketing
25,616
Recruitment costs
5,524
Computer costs
12,232
Provision for doubtful
debts
17,565
Postage and stationery
10,325
Telephone and fax
565
Motor expenses
1,742
Travelling expenses
2,302
Legal and professional
fees
7,726
Auditor's remuneration
11,400
Accountancy
31,567
Sundry expenses
12,665
Subscriptions
2,790
Bank charges
5,028
Depreciation
27,677
498,970
11,400||**(Continued)**
114,637
-
-
1,134,353
-
23,030
57,291
80,321
114,637
23,030
57,291
1,214,674
**2022**Support costs Governance
costs
2021
**£**
£
£
£
163,373
148,004
-
148,004
98,148
91,910
-
91,910
42,217
37,910
-
37,910
7,573
6,693
-
6,693
13,661
17,385
-
17,385
6,241
4,800
4,800
4,433
4,362
4,362
25,616
22,967
22,967
5,524
8,562
8,562
12,232
12,581
12,581
17,565
6,391
6,391
10,325
7,095
7,095
565
442
442
1,742
1,698
1,698
2,302
178
178
7,726
8,558
8,558
11,400
15,600
15,600
31,567
32,386
32,386
12,665
15,134
15,134
2,790
3,793
3,793
5,028
4,049
4,049
27,677
28,575
28,575
510,370
463,473
15,600
479,073|**(Continued)**
114,637
-
-
1,134,353
-
23,030
57,291
80,321
114,637
23,030
57,291
1,214,674
**2022**Support costs Governance
costs
2021
**£**
£
£
£
163,373
148,004
-
148,004
98,148
91,910
-
91,910
42,217
37,910
-
37,910
7,573
6,693
-
6,693
13,661
17,385
-
17,385
6,241
4,800
4,800
4,433
4,362
4,362
25,616
22,967
22,967
5,524
8,562
8,562
12,232
12,581
12,581
17,565
6,391
6,391
10,325
7,095
7,095
565
442
442
1,742
1,698
1,698
2,302
178
178
7,726
8,558
8,558
11,400
15,600
15,600
31,567
32,386
32,386
12,665
15,134
15,134
2,790
3,793
3,793
5,028
4,049
4,049
27,677
28,575
28,575
510,370
463,473
15,600
479,073|
|---|---|---|---|
||||1,214,674|
||||2021
£
148,004
91,910
37,910
6,693
17,385
4,800
4,362
22,967
8,562
12,581
6,391
7,095
442
1,698
178
8,558
15,600
32,386
15,134
3,793
4,049
28,575|
||||479,073|
## **8 Trustees**
During this year and the previous year, no amounts were re-imbursed to trustees.
None of the current trustees are remunerated by the charity.
- 20 -
## **TERAPIA**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **9 Employees**
The average monthly number of employees, excluding the trustees, during the year was:
|Employees
**Employment costs**
Wages and salaries
Social security costs
Other pension costs
The number of employees whose annual remuneration was more than £60,000
is as follows:
£90,000 - £100,000|**2022**
**Number**
15
**2022**
**£**
451,094
42,217
7,573
500,884
**2022**
**Number**
1|**2021**
**Number**
13|
|---|---|---|
|||**2021**
**£**
416,919
37,910
6,693|
|||461,522|
|||**2021**
**Number**
1|
## **10 Taxation**
No liability arises as the charitable company is a registered charity and is therefore exempt from taxation on the income arising from its normal activities.
- 21 -
## **TERAPIA**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
|**11**
**Property, plant and equipment**
**Cost**
At 1 January 2022
Additions
Disposals
At 31 December 2022
**Depreciation and impairment**
At 1 January 2022
Depreciation charged in the year
Eliminated in respect of disposals
At 31 December 2022
**Carrying amount**
At 31 December 2022
At 31 December 2021
**12**
**Trade and other receivables**
**Amounts falling due within one year:**
Trade receivables
Prepayments and accrued income
**Amounts falling due after more than one year:**
Prepayments and accrued income
**Total debtors**|**The Bothy**
**£**
1,730,447
-
-
1,730,447
110,948
23,093
-
134,041
1,596,406
1,619,499|**Fixtures,**
**fittings &**
**equipment**
**£**
85,552
755
(27,504)
58,803
63,389
4,584
(27,504)
40,469
18,334
22,163
**2022**
**£**
49,649
63,697
113,346
**2022**
**£**
-
113,346|**Total**
**£**
1,815,999
755
(27,504)
1,789,250
174,337
27,677
(27,504)
174,510
1,614,740
1,641,662
**2021**
**£**
39,170
62,888
102,058
**2021**
**£**
40,000
142,058|
|---|---|---|---|
- 22 -
## **TERAPIA**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **13 Current liabilities**
|**Current liabilities**|||
|---|---|---|
|Other taxation and social security
Trade payables
Other payables
Accruals and deferred income|**2022**
**£**
12,911
19,208
1,827
235,858
269,804|**2021**
**£**
12,403
9,159
1,606
139,547|
|||162,715|
Included in creditors is deferred income of £200,967 (2021: £113,312) which relates to 2023 course fees received in advance.
- 23 -
## **TERAPIA**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **14 Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
|**Balance at**
**1 January 2021**
**£**
The Bothy renovation work
1,615,854
The Underprivileged Children's fund
4,000
Whole School Approach
-
1,619,854|**Movement in funds**
**Incoming**
**Resources**
**Resources**
**Expended**
**Fund transfers**
**Balance at**
**1 January 2022**
**£**
**£**
**£**
**£**
-
(23,030)
26,675
1,619,499
-
-
-
4,000
140,050
(57,291)
-
82,759
140,050
(80,321)
26,675
1,706,258|**Movement in funds**
**Incoming**
**Resources**
**Resources**
**Expended**
**Balance at**
**31 December**
**2022**
**£**
**£**
**£**
-
(23,093)
1,596,406
-
-
4,000
10,500
(55,425)
37,834
10,500
(78,518)
1,638,240|**Movement in funds**
**Incoming**
**Resources**
**Resources**
**Expended**
**Balance at**
**31 December**
**2022**
**£**
**£**
**£**
-
(23,093)
1,596,406
-
-
4,000
10,500
(55,425)
37,834
10,500
(78,518)
1,638,240|
|---|---|---|---|
||||1,638,240|
The Bothy restricted fund relates to specific donations received for the purpose of renovating a property which has been leased to the Charity on a long-term basis to be used in connection with the charity's purpose of providing a therapeutic centre for children, young adults and their families.
The Underprivileged Children's fund is used to enable young people and their families who could not otherwise afford it to access therapeutic services.
The Whole School Approach fund is used to provide holistic therapeutic services to entire school communities. This has been primarily funded by a grant from John Lyon's Charity beginning in 2021 which was pledged to contribute £133,000 over three years.
- 24 -
## **TERAPIA**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
|**15**
**Analysis of net assets between funds**
**Unrestricted**
**funds**
**Restricted**
**funds**
**2022**
**2022**
**£**
**£**
Fund balances at 31
December 2022 are
represented by:
Property, plant and
equipment
18,334
1,596,406
Net current assets
227,503
41,834
245,837
1,638,240|**Total**
Unrestricted
funds
**2022**
2021
**£**
£
1,614,740
22,163
269,337
178,000
1,884,077
200,163|Restricted
funds
2021
£
1,619,499
86,759
1,706,258|Total
2021
£
1,641,662
264,759|
|---|---|---|---|
||||1,906,421|
## **16 Operating lease commitments**
At the reporting end date the charitable company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
|Within one year
Between two and five years
In over five years|**2022**
**£**
31,706
125,235
8,663
165,604|**2021**
**£**
31,706
10,688
-|
|---|---|---|
|||42,394|
## **17 Related party transactions**
J Block, a previous trustee of Terapia and spouse of a member of key management, is also a director and shareholder of Head Teacher Research Limited. During the year ended 31 December 2022 the charitable company paid £6,577 (2021: £6,836) for supplies and services to Head Teacher Research Limited.
N Rolli, a trustee of Terapia provided teaching to two groups of students. During the year she received £1,700 (2021: £nil) for services rendered.
|**18**
**Cash generated from operations**
(Deficit)/surpus for the year
Adjustments for:
Depreciation of property, plant and equipment
Movements in working capital:
Decrease/(increase) in trade and other receivables
Increase in trade and other payables
**Cash generated from operations**|**2022**
**£**
(22,344)
27,677
28,712
107,089
141,134|**2021**
**£**
23,327
28,575
(82,517
40,050|
|---|---|---|
|||9,435|
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