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2025-03-31-accounts

PSYCHIATRIC REHABILITATION ASSOCIATION

FINANCIAL STATEMENTS

31 MARCH 2025

Registered Charity Number 227891

EDMUND CARR LLP

Chartered Accountants & Registered Auditors 146 New London Road Chelmsford Essex CM2 0AW

PSYCHIATRIC REHABILITATION ASSOCIATION

YEAR ENDED 31 MARCH 2025

CONTENTS
Charity information 1
The trustees' report 2
Independent examiner's report to the trustees 6
Statement of financial activities 7
Balance sheet 8
Cash flow statement 9
Notes to the financial statements 10
The following page does not form part of the financial statements
Income and expenditure account 16

PSYCHIATRIC REHABILITATION ASSOCIATION

CHARITY INFORMATION

YEAR ENDED 31 MARCH 2025

Chairman R B McNeill
Trustees R B McNeill
L Dolby, RN, RMN, Dip HE Mental Health
D E Mannifield
O Shah (Solicitor, England and Wales)
F V Whitbread (Appointed 15 May 2024)
Director of Operations Ashwin Mathews, BA (Hons), MBA
Auditors Edmund Carr LLP
146 New London Road
Chelmsford
Essex
CM2 0AW
Bankers National Westminster Bank plc
PO Box 8030
20 Amhurst Road
London
E8 1JJ
Investment Managers Rothschild Asset Management Limited
1 King William Street
London, EC4N 7AR
BNY Mellon Fund Managers Limited
160 Queen Victoria Street
London, EC4V 4DR
CCLA Investment Management Limited
Senator House
85 Queen Victoria Street
London, EC4V 4ET
Charity Number 227891
Principal Address 1A Darnley Road
Hackney
London
E9 6QH

1

PSYCHIATRIC REHABILITATION ASSOCIATION

THE TRUSTEES' REPORT

YEAR ENDED 31 MARCH 2025

The Trustees have pleasure in presenting their report for the year ended 31 March 2025.

CONSTITUTION

The Psychiatric Rehabilitation Association (PRA) is an unincorporated charity constituted under the Charities Act and a trust deed dated 5th November 1962.

OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT

The charity’s objectives are to support individuals in recovery and to promote inclusion within communities. The Association also attempts to improve attitudes towards mental ill health and promotes practical measures and research for preventing and combatting mental distress within the community.

There have been no material changes in either the Association’s objectives or its policies to try to achieve these during the year under review.

The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Trust's aims and objectives and in planning future activities.

ORGANISATION

The board of trustees, who meet quarterly, administer the charity. A director of operations has been appointed by the trustees to manage the day to day running of the charity and its related companies.

Any board member may propose the appointment of a new trustee. If the board agrees the prospective trustee is invited for informal discussions with nominated board members and, if appropriate, to attend one or more board meetings. All new trustees are given a copy of the Charity Commission publication CC3 – “The Essential Trustee: What You Need To Know” and confirm that they have read, understood and accept the responsibilities involved. Existing trustees are kept up to date by referring to charity commission updates and relevant publications.

All trustees give their time voluntarily. Details of any benefits and expenses are disclosed in note 13 to the accounts.

RELATED PARTIES

In order to achieve its objectives the Association supports two separately registered charitable organisations.

The Centre for Better Health Limited provides services in partnership with various local authorities and health authorities.

Better Health Products Limited is a social enterprise that provides employment training opportunities for individuals recovering from mental ill health.

Both of these companies are registered charities and are companies limited by guarantee without share capital.

2

PSYCHIATRIC REHABILITATION ASSOCIATION

THE TRUSTEES' REPORT (continued)

YEAR ENDED 31 MARCH 2025

REVIEW OF DEVELOPMENTS

In the course of the last financial year the trustees of the Association continued to support the work of The Centre for Better Health (CBH). The operating environment for charities continues to be challenging, partly due to inflationary pressures and an overstretched statutory sector. In order to try and meet the rising demand for mental health support, the Association has committed to part fund the core costs of CBH. As such over the last financial year the Association has awarded a grant of £239,000 to CBH.

INVESTMENT POLICY

The trustees wish to pursue on behalf of the charity an investment policy to achieve capital growth with a medium level of risk over the longer term, thereby enabling the trustees to meet their objectives in respect of the requirement of the charity.

The trustees have delegated the management of the portfolio to Rothschild Asset Management Limited, BNY Mellon Fund Managers Limited and CCLA. The trustees require their investment managers to pay attention to the standard investment criteria, namely the suitability of the class of investment and the need for diversification insofar as appropriate to the circumstances of the charity. Any restrictions on the type of investments or markets in which the manager may invest on the charity's behalf will be given in writing.

There is no specific income target for the investment portfolio.

RESERVES POLICY AND RISK MANAGEMENT

As outlined above, the Association supports a variety of long-term projects alongside The Centre for Better Health Limited and Better Health Products Ltd. The trustees have examined the requirement for free reserves which are those unrestricted funds not invested in fixed assets, unrealised investment gains, designated for a specific purposes or otherwise committed. The free reserves at 31 March 2025 amount to £2,208,155 which the trustees consider are adequate to meet the ongoing commitments of the charity subject to the following.

The trustees have designated the following reserves:-

1: £1,500,000 to represent the anticipated extra funding needed by the existing projects run by The Centre for Better Health Limited that the Association is supporting over the next five years.

2: £500,000 towards the development of the Darnley Road centre, in particular to cover fundraising and professional fees.

  1. A reserve to cover the cost of replacement of the fixed assets based on the replacement cost at 31 March 2025 of £1,279,673 (being the majority of the cost of £1,282,497).

The trustees actively review the major risks that the charity faces on a regular basis and believe that maintaining the free reserves at the level stated above, combined with an annual review of the controls over key financial systems carried out through an internal audit programme, will provide sufficient resources in the event of adverse conditions. The trustees have also established other operational and business risks that PRA faces and confirm they have established systems to mitigate the significant risks.

3

PSYCHIATRIC REHABILITATION ASSOCIATION

THE TRUSTEES' REPORT (continued)

YEAR ENDED 31 MARCH 2025

FINANCIAL REPORT

The financial statements and notes which follow this report have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice.

The SOFA shows net expenditure for the year before gains and losses on investments of £257,434 (2024: £321,178) for the Association. Net expenditure for the year, including gains and losses on investments, was £189,226 (2024: £140,144 net income).

The year end financial position, reflected by the balance sheet, is considered to be satisfactory.

At 31 March 2025, the Association had total net assets of £5,489,068 of which £Nil related to restricted funds (which can only be used for the specific purpose for which they were created), £3,279,673 related to designated funds (amounts set aside by the trustees to meet future strategic commitments) and £2,209,395 represented unrestricted funds.

The trustees have designated funds that represent the anticipated extra funding needed by the existing projects run by The Centre for Better Health Limited that the Association is supporting over the next five years.

The trustees have in addition designated reserves towards the development of the Darnley Road centre, in particular to cover fundraising and professional fees.

Unrestricted funds will be used in substitution for external funding only as a last resort, because it is essential for PRA to have a firm financial base from which it can expand the range of services it funds.

The trustees will continue to budget on a prudent basis to ensure that PRA maintains a strong financial position to meet the challenges which lie in the years ahead.

4

PSYCHIATRIC REHABILITATION ASSOCIATION

THE TRUSTEES' REPORT (continued)

YEAR ENDED 31 MARCH 2025

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees 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).

The law applicable to charities in England and Wales 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 of the charity for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper 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 Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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.

BY ORDER OF THE BOARD

........................... R B McNEILL Trustee

........................ 2025

5

PSYCHIATRIC REHABILITATION ASSOCIATION

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES

YEAR ENDED 31 MARCH 2025

I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 March 2025 which are set out on pages 7 to 15.

Responsibilities and basis of report

As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

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

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other 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.

…..............................

Alex Stone FCCA

146 New London Road Chelmsford Essex CM2 0AW

Date: ….....................

9

PSYCHIATRIC REHABILITATION ASSOCIATION

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 MARCH 2025

Notes
Income from
Donations and legacies
Investment income
2
Total income
Expenditure on
Charitable activities
3
Total expenditure
Net expenditure before gains and losses on investments
Net gains on investments
Net (expenditure) / income
Transfer between funds
Net Movement in Funds
Total funds brought forward at 1st April 2024
Total funds carried forward at 31st March 2025		 Total
Total
Funds
Funds
2025
2024
£
£
30
30
47,621
45,918
47,651
45,948
305,085
367,126
305,085
367,126
(257,434)
(321,178)
68,208
461,322
(189,226)
140,144
-
-
(189,226)
140,144
5,678,294
5,538,150
5,489,068
5,678,294

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

All income and expenditure in the current and prior year was unrestricted

7

PSYCHIATRIC REHABILITATION ASSOCIATION

BALANCE SHEET

AS AT 31 MARCH 2025

Notes
FIXED ASSETS
7
INVESTMENTS
8
CURRENT ASSETS
Debtors
Cash at bank and in hand
9
CREDITORS: AMOUNTS FALLING
DUE WITHIN ONE YEAR
10
Net Current Assets
NET ASSETS
REPRESENTED BY:
Unrestricted Reserve Funds:
11
Development Fund
Designated:
11
Project Support Fund
Wellness Centre Development Fund
Fixed Assets
ASSOCIATION'S FUNDS
Approved on behalf of the Trustees on ….........		 £
£
897,743
4,563,457
5,461,200
-
94,786
94,786
(66,918)
27,868
5,489,068
2,209,395
1,500,000
500,000
1,279,673
3,279,673
5,489,068
.............. 2025.
2025		 £
£
923,395
4,719,759
5,643,154
-
147,729
147,729
(112,589)
35,140
5,678,294
2,398,621
1,500,000
500,000
1,279,673
3,279,673
5,678,294
2024		 £
£
923,395
4,719,759
5,643,154
-
147,729
147,729
(112,589)
35,140
5,678,294
2,398,621
1,500,000
500,000
1,279,673
3,279,673
5,678,294
2024
5,643,154
35,140
5,678,294
2,398,621
3,279,673
5,678,294

…................... R B McNEILL

8

PSYCHIATRIC REHABILITATION ASSOCIATION

CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 MARCH 2025

Cash flows from operating activities
Net movement in funds for the financial year
Adjustments for:
Depreciation of tangible assets
4
Net (gain)/loss on investments
Dividends and interest received
2
Changes in:
Trade and other creditors
5
Cash generated from operations
Net cash (used in)/from operating activities
Cash flows from investing activities
Purchase of investments
8
Proceeds from sale of investments
Dividends and interest received
2
Net cash used in investing 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
9		 2025
£
(189,226)
25,652
(68,208)
(47,621)
(45,671)
(325,074)
(325,074)
(25,491)
250,001
47,621
272,131
(52,943)
147,729
94,786		 2024
£
140,144
25,652
(461,322)
(45,918)
57,837
(283,607)
(283,607)
(32,089)
300,000
45,918
313,829
30,222
117,507
147,729

9

PSYCHIATRIC REHABILITATION ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

1) ACCOUNTING POLICIES

a) Basis of Preparation

The financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP 2019 (FRS 102)): Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

The Association constitutes a public benefit entity as defined by FRS 102.

b) Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern for a period of at least 12 months from the date of approval of these accounts, nor are there any significant areas of uncertainty that affect the carrying value of assets held by the charity.

c) Taxation

As the Association is a registered charity, it is exempt from taxation other than VAT, which is included in the relevant costs in the Statement of Financial Activities.

d) Fixed assets

Freehold properties are shown in the financial statements at their deemed cost, which is the value as at the last revaluation before the date of transition to FRS 102.

Depreciation has been charged on freehold building at a rate of 2% straight line per annum on cost. Due to the difficulty in quantifying the buildings element of the values at which the various properties are shown in the financial statements, depreciation has been charged on the entire value, as the trustees consider this represents the most prudent method of including a depreciation charge on freehold buildings.

Other fixed assets are shown in the financial statements at cost less aggregate depreciation. Depreciation is provided at the rate of 25% per annum over the estimated useful life of the asset.

e) Investments

Investments are included at market value. When investments are sold, any surplus or deficit on disposal is credited or charged to the Statement of Financial Activities.

f) Debtors

Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid.

10

PSYCHIATRIC REHABILITATION ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

g) Creditors

Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount.

h) Income

Income from donations and grants, including capital grants, is included in incoming resources when these are receivable.

Interest receivable is included when received by the charity.

i) Expenditure

Resources expended are included in the Statement of Financial Activities on an accruals basis.

j) Fund accounting

Funds held by the charity are either:

Unrestricted general funds – these are funds that can be used in accordance with the charitable objectives at the discretion of the trustees.

Designated funds – funds that are set aside by the trustees for specific future purposes or projects.

Restricted funds – these are funds that 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.

k) Pension costs

The charity operates a defined contribution scheme. The assets of the scheme are held separately from those of the charity. The annual contributions payable are charged to the Statement of Financial Activities.

l) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

11

PSYCHIATRIC REHABILITATION ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

2) INVESTMENT INCOME 2025 2024
£ £
Listed investments 33,307 32,088
Interest received on cash deposits 14,314 13,830
47,621 45,918
3) CHARITABLE ACTIVITIES Group work Total Total
centre 2025 2024
£ £ £
Grants payable (note 6) 239,000 239,000 305,000
Salaries 12,400 12,400 12,401
Pension contributions 10,800 10,800 10,800
Training and CPD 5,075 5,075 4,250
Building repairs 4,800 4,800 -
Bank charges 36 36 54
General expenses 570 570 743
Support costs (note 4) 25,652 25,652 25,652
Governance costs (note 5) 6,752 6,752 8,226
305,085 305,085 367,126
The total employee benefits of the key management personnel were £23,200 (2024: £23,201).
The average number of employees by headcount was 1 (2024: 1).
4) SUPPORT COSTS Group work Total Total
centre 2025 2024
£ £ £
Depreciation 25,652 25,652 25,652
25,652 25,652 25,652
5) GOVERNANCE COSTS 2025 2024
£ £
Independent examination fee 2,000 -
Audit fee - 3,000
Accountancy and other fees 4,752 5,226
6,752 8,226
6) GRANT-MAKING
Analysis of grants
Below are the details of grants made to institutions: 2025 2024
£ £
The Centre for Better Health Limited 239,000 305,000

12

PSYCHIATRIC REHABILITATION ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

7) FIXED ASSETS Freehold Land
and buildings Total
£ £
Cost
At 1 April 2024 & 31 March 2025 1,282,497 1,282,497
Depreciation
At 1 April 2024 359,102 359,102
Charge 25,652 25,652
At 31 March 2025 384,754 384,754
Net Book Value
At 31 March 2025 897,743 897,743
At 31 March 2024 923,395 923,395
The historical cost of Freehold Land and Buildings was £501,217. The deemed cost upon transition
to FRS 102 was the valuation of £1,280,000 plus capitalised improvements.
8) INVESTMENTS 2025 2024
£ £
Quoted:
Market value at 1st April 2024 4,719,759 4,526,350
Additions 25,491 32,088
Disposals at cost (146,903) (187,466)
Net unrealised investment gains/(losses) (34,890) 348,787
Market value at 31st March 2025 4,563,457 4,719,759
Historical cost 2,432,935 2,554,346
9) CASH AND CASH EQUIVALENTS 2025 2024
£ £
Cash and cash equivalents comprise the following:
Cash at bank and in hand 94,786 147,729
**10) ** CREDITORS 2025 2024
£ £
Accruals and deferred income 4,232 7,680
Related undertakings 61,413 104,909
Other creditors 1,273 -
66,918 112,589

13

PSYCHIATRIC REHABILITATION ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

11) UNRESTRICTED AND DESIGNATED FUNDS

Current year:
Designated funds
Project Support Fund
Wellness Centre Development
Fixed Assets
Unrestricted - Development Fund
Total funds
Prior year:
Designated funds
Project Support Fund
Wellness Centre Development
Fixed Assets
Unrestricted - Development Fund
Total funds		 Balance at
1st April
2024
£
1,500,000
500,000
1,279,673
3,279,673
2,398,621
5,678,294
Balance at
1st April
2023
£
1,500,000
500,000
1,279,673
3,279,673
2,258,477
5,538,150		 Transfers
Income
Expenditure
and gains
£
£
( 239,000)
239,000
-
-
-
-
-
( 239,000)
239,000
47,651
( 66,085)
( 170,792)
47,651
(305,085)
68,208
Transfers
Income
Expenditure
and gains
£
£
-
( 305,000)
305,000
-
-
-
-
-
( 305,000)
305,000
45,948
( 62,126)
156,322
45,948
(367,126)
461,322
Movement in resources:
Movement in resources:		 Balance at
31st March
2025
£
1,500,000
500,000
1,279,673
3,279,673
2,209,395
5,489,068
Balance at
31st March
2024
£
1,500,000
500,000
1,279,673
3,279,673
2,398,621
5,678,294

A designation of £1,500,000 has been made to cover the current anticipated shortfall in funding of existing projects the charity is supporting in the next five years and £305,000 has been taken from this fund to cover the grants made to The Centre For Better Health Limited in the year. The trustees consider it appropriate to maintain the overall level of the Project Support Fund at £1,500,000 and so a new designation of £239,000 has been made. £500,000 was set aside towards the development of a 'Wellness' Centre, being the estimated costs of fundraising and professional fees in order for this project to be progressed. The fixed asset fund is to cover the estimated cost of replacement of fixed assets.

14

PSYCHIATRIC REHABILITATION ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

12) ANALYSIS OF NET ASSETS

Current year:
Designated funds
Unrestricted funds
Prior year:
Designated funds
Unrestricted funds		 Fixed Assets
£
897,743
-
897,743
Fixed Assets
£
923,395
-
923,395		 Investments
£
2,381,930
2,181,527
4,563,457
Investments
£
2,356,278
2,363,481
4,719,759		 Other
£
-
27,868
27,868
Other
£
-
35,140
35,140		 Total
£
3,279,673
2,209,395
5,489,068
Total
£
3,279,673
2,398,621
5,678,294

13) TRUSTEES

No Trustees received remuneration in either the current or prior year. No Trustees were reimbursed for expenses incurred in either the current or prior year.

14) RELATED PARTY TRANSACTIONS

There is no ultimate controlling party.

The trustees are also the directors of The Centre for Better Health Limited and Better Health Products Limited, which are the two independently registered charitable companies the Association supports to achieve its objectives.

The amounts due to related undertakings as detailed in note 5 are as follows:-

2025 2024
£ £
The Centre for Better Health Limited 61,413 104,909

During the year, £239,000 (2024: £305,000) was granted to The Centre for Better Health Limited.

15

PSYCHIATRIC REHABILITATION ASSOCIATION

INCOME AND EXPENDITURE ACCOUNT - DEVELOPMENT FUND

FOR THE YEAR ENDED 31 MARCH 2025

INCOME
Investment income
Donations, covenants, sundry grants
EXPENDITURE
Salaries
Pension contributions
Training and CPD
Building repairs
Bank charges
Audit and accountancy
Depreciation
General Expenses
Grant to The Centre for Better Health
DEFICIT FOR THE YEAR
Realised gains on investments
Unrealised gains on investments
Transfer from Project Support Fund
New designations
Balance brought forward
BALANCE CARRIED FORWARD		 £
£
£
£
47,621
45,918
30
30
47,651
45,948
12,400
12,401
10,800
10,800
5,075
4,250
4,800
-
36
54
6,752
8,226
25,652
25,652
570
743
239,000
305,000
305,085
367,126
(257,434)
(321,178)
103,098
112,535
(34,890)
348,787
239,000
305,000
(239,000)
(305,000)
2,398,621
2,258,477
2,209,395
2,398,621
2025
2024

16