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2021-03-31-accounts

REGISTERED COMPANY NUMBER: 00845037 (England and Wales) REGISTERED CHARITY NUMBER: 242475

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 March 2021

for

Philadelphia Association Limited

Peter Upton Bridge House 2 Bridge Avenue Maidenhead Berkshire SL6 1RR

Philadelphia Association Limited

Contents of the Financial Statements for the Year Ended 31 March 2021

Page
Report of the Trustees 1 to 7
Independent Examiner's Report 8
Statement of Financial Activities 9
Balance Sheet 10
Notes to the Financial Statements 11 to 17
Detailed Statement of Financial Activities 18 to 19

Philadelphia Association Limited

Report of the Trustees for the Year Ended 31 March 2021

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 March 2021. 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 activities

The Philadelphia Association was registered as a charity in 1965 with the original object of:

(A) Relieving mental distress of all descriptions; and

The current activities of the Association include:

The Trustees are satisfied that both the activities of the Association and its current priorities are helping it to meet the objectives outlined in our governing documentation and that it has had suitable regard to the Charity Commission's public benefit guidance.

Page 1

Philadelphia Association Limited

Report of the Trustees

for the Year Ended 31 March 2021

ACHIEVEMENT AND PERFORMANCE

This year has been yet another challenging one for the PA as the COVID-19 pandemic has continued to interrupt the ordinary day to day running of people's lives However the organisation has continued to meet this challenge in a creative manner.

The online Friday evening discussion groups have continued to be popular and well attended with continued funding from the National Lottery Grant and the Affordable Therapy Clinic continues to attract those seeking therapy at a lower fee. The continued success of this service can create a difficulty where clinician's lower fee slots become full. The PA however is attempting to confront this difficulty by offering the free use of rooms for example, for those working with lower fee referrals

Marty's Yard is slowly coming back to life with the resumption of face-to-face therapy taking place and room bookings resuming with meetings and activities once again starting to help the building to feel alive again. New carpets, professional cleaning and the surviving plants are a welcome change to working purely online.

Despite the lack of income during the year from the rooms not being in use and the loss of rental income, the financial standing of the PA continues to be strong with a healthy up-take for all the training courses on offer. There is also a healthy up-take of the new online course that the PA has set up which enables those not living in London to undertake a PA training.

The two houses continue to maintain the minimum occupancy rate with the hope of more prospective people joining as the pandemic situation improves. The House Therapists are again working in the Houses after a period of working on-line.

The trustees said goodbye to two members of the board this year which leaves the board without a member trustee. We continue to seek a member to join us and have some prospective applicants from other fields who we think would be welcome contributors to the board and organisation.

We have been attempting to improve communication with CofM during the year which has resulted in us having a finance meeting on a 6-weekly basis with Andreas (Treasurer/Co-Chair) and regular meetings with Ian who is Co-Chair of CofM. This has helped the trustees to keep more abreast of day-to-day operational issues that arise and we continue to develop closer links with joint CofM/trustee meetings in mind.

Psychotherapy training

The P.A.'s psychotherapy training continues to provide a distinctive approach to learning to be a psychotherapist and attracts very good and interesting applicants.

There are currently 14 trainees in the group with a further joining in January. Two trainees are hopefully approaching their pass. One of the trainees, Dan Bristow, has recently written a book on Lacan and we are planning to host a book launch for him at marty's Yard.

The transition to online working seemed to go smoothly and it will continue for at least the autumn term.

One of the members of the Training Committee, Miles Clapham, has moved to Spain, but is kindly continuing to provide remote support. We would like to thank him for all his work over the years.

Study Programme

The study programme now comprises:

In the 2020-2021 academic year the study programme went online due to COVID-19 and its associated social and health & safety restrictions. Despite all the uncertainty around facilitating the courses online, they ran at full capacity and we attracted a diverse student group who found the PA during a pandemic. We offered 8 x 50% bursaries across the three courses to students experiencing financial hardship.

Three students applied and were accepted onto the psychotherapy training and a few more expressed interest in applying in the future. This October the courses will return to in-person groups at Marty's Yard. Alongside the three established courses we are piloting a new online course Community, Philosophy and Psychotherapy (Theory & Practice). A positive side to online meetings is that persons with disabilities who are unable to travel and people living outside London and abroad can attend.

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Philadelphia Association Limited

Report of the Trustees

for the Year Ended 31 March 2021

We thank Mary Enright, Michele Morgan, Sophia Raja and Rob White for their help with administration, promotion, hosting the courses online and technical support. We continue to think about how we can improve access to the Study Programme. The Building Communities online events programme we ran attracted a fair number of people with no former contact with the PA, many of whom were outside London, a few not even in Europe who have enrolled on the study programme.

The CofM would also like to thank Andrea Heath and Lucy King for their invaluable contribution to the study programme.

Houses

The PA houses have continued their work despite the challenges of the pandemic and the lockdowns and restrictions that have become part of everyone's experience these last 17 months.

House meetings moved online for extended periods of time before face-to-face meetings resumed when restrictions were relaxed, and ultimately lifted. The usual process of potential new residents visiting the houses was completely disrupted which meant that occupancy remained the same throughout the year. Visits have started again and Freegrove recently welcomed a new resident. We hope that both houses will be able to welcome new residents over the coming months.

Thank you to Luke Reynolds for his work as house therapist at the Grove. He left the role in May this year. The job was offered to and accepted by Amy Ison who has now joined Andrea Heath. At a joint TC and trainee meeting it was suggested that the houses, and their work today be brought back into the PA's training curriculum along with the ethos and history behind them.

The PA has employed Romy Mahabir who brings his knowledge and expertise from his previous role as Housing Manager at The Arbours Association where he worked for many years. Romy is reviewing and updating all of our existing policies, procedures and tenancy agreements. He attends monthly ethos meetings along with the house therapists and other members of the Houses Committee.

Referrals

Over the past year referral consultations have continued to be carried out remotely - via Zoom, Skype or the telephone. Clients have been referred for online work although some therapists are offering in person work now. It is anticipated that some referral consultations will soon be carried out in person, now that Marty's Yard has reopened.

The referral consultation fee is set at £20 for the unwaged and £40 for people in employment. There is little or no low fee therapy available at present and enquirers are informed that the minimum fee is in the region of £40/£45 and people can be signposted for low fee work.

From January 2021 a new application form was placed on the website and the office have started to collate information about enquiries and follow up of therapy, noting details such as age, gender and ethnicity. This has helped in gaining an understanding of demand and take up of therapy. In January and February 2021 there were 86 enquiries and 17 consultations carried out, all people were referred with an average fee of £40. Between March and June there were 108 enquiries and 28 consultations, again with fees averaging £40/£45.

A letter has been sent to members about the National Lottery Funding some of which has been used to ring-fence a full-time room at Marty's Yard where qualified therapists can offer affordable therapy (under the cost of £35) to people in return for a low room rental - £20 for a full-day and £17 for half a day. Currently the room is used for three and a half days a week and 17 clients are receiving open-ended low fee weekly therapy. It is hoped that this can be built upon in the coming months to meet the need for affordable therapy.

We would like to thank Emma Stroker and Amanda Ferozha for all their ongoing commitment to the referrals service.

The PA's CPJA representative

I volunteered for this role in order to better understand the work of the United Kingdom Council of Psychotherapy (UKCP) : it's Colleges, Organisational Members (OM's), and the relation between individual practitioners and the UKCP.

Many therapists are sceptical about the value of the UKCP. I have questioned whether the PA's continuing membership is beneficial to the PA - it's members, associates, trainees, and students.

After a year in the role, I am not much better informed except perhaps slightly better educated in the history of the various residual organisations in the world of therapy. I fear that the UKCP is intent on a homogenisation of trainings and 'standards'. The SCoPEd project is working on this. These organisations (listed below) are compiling an 'evidence-based' set of training requirements. This will put OM's in a position of having to comply with the agreed criteria. These are the seven organisations who will decide what should and should not be in any training program:

Page 3

Philadelphia Association Limited

Report of the Trustees

for the Year Ended 31 March 2021

Two of the foremost issues in discussions within the CPJA College, have been around (1) decision-taking within the CPJA and (2) how different kinds of complaints should be handled, and by whom.

(1) There are proposed constitutional changes to be voted on at the CPJA meeting on 23rd October 2021.The proposals would make a considerable change to the current system which recognises OM's as the primary membership constituents of Colleges. The proposals would give voting rights to individual direct members of CPJA who are unaffiliated with any OM.

(2) The issue of Complaints and how different kinds of complaints should be handled, is a continuing problem that I think the PA will have to address at some point. Currently PA members who are UKCP members will have professional complaints (i.e. complaints about their work as a therapist) dealt with by UKCP. Professional complaints for PA members who are not UKCP members, have to be dealt with by the PA. Complaints about professional negligence, misconduct etc can be expensive to deal with, potentially catastrophic for the PA. I think it is not tenable to leave things as they are.

It seems that we have some choices about how we manage this issue. The two options I propose, assume that the PA retains its organisational membership of UKCP:

  1. Require all PA members to join UKCP as a condition of PA membership.

Or

  1. Charge a supplement to PA members who prefer not to join UKCP. This supplement would be used to build a ring-fenced fund to pay for legal and other expenses arising from processing any complaints. I would propose this annual supplement should be identical to the UKCP membership fee, which is currently £261.

Finally, I have attended meetings with UKCP central, and other OM reps, to discuss formalising a Service Level Agreement (SLA) between UKCP and OM's. The UKCP took the initiative with this, but they seem to have put it on the back burner, also toned down the SLA somewhat, now referring instead to a Memorandum of Understanding. I am not sure whether this initiative will be dropped or pursued to a conclusion.

Many PA members have spoken of wanting to resist government regulation of psychotherapy. Our continuing membership of the UKCP, however, is without question a submission to regulation. The UKCP is strongly advocating itself as the regulator that should be appointed by government. Like it or not, our continuing membership also provides financial support for this project.

The CofM would like to thank Jeremy Cutler for all his hard work as our CPJA representative.

Poetry and Art Group

'Poems shared and read' began in December 2020 and ran until July 2021. The approach to the evenings was very 'open', with participants coming along with a poem they have been writing or a poem they have read to share with others. I sent a brief note before the evening, sharing a poem or a possible theme; participants were invited to add to this. Certain themes did emerge during the evenings, thoughts about poems related to animals, nature, the supernatural, freedom, song lyrics and, of course, Covid 19 because the evenings took place on Zoom during the lockdowns. One evening, we all wrote a poem together, starting with one word and everyone writing a line in response to the stimulus and putting it all together and reading it aloud.

Between 12 and 15 people signed up for the evenings, some newcomers each time and some regular. I felt that everyone came away from the evenings having heard something new and thoughts could be shared that were evoked by the poems.

A new PA online art group starts on Friday (15 October) at 7pm. We will be discussing Goya's mysterious and disturbing Black Paintings.

The Office

This year we said good-bye to Mary Enright who is and will be greatly missed. Michele Morgan joined us in the summer of 2020, in challenging circumstances, and has done a wonderful job and keeping things going whilst Marty's Yard remained closed and virtually all of our interactions were online. We have recently welcomed Sophia Raja to the PA who is now job sharing the administrator's role with Michele.

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Philadelphia Association Limited

Report of the Trustees for the Year Ended 31 March 2021

Building Communities

Funded by the National Lottery Community Fund

In October 2020 the National Lottery Coronavirus Community Support Fund awarded the PA funds for a proposed Building Communities project. The project delivered a six-month programme of online events and therapeutic activities to reach out to people during the COVID- 19 pandemic. They National Lottery awarded the PA a second grant to continue the project from June 2021 to May 2022.

The proposal included ring-fencing a room full-time at Marty's Yard qualified therapists could offer affordable therapy to people surviving on low-income and a programme of online workshops and discussion groups. The weekly events ran from Oct 2020 - May 2021. From June to May 2022 events are programmed twice monthly. The project is facilitated by volunteers and the PA administration team who have helped with hosting, advertising and collecting the required data.

CREATIVE FRIDAYS Free Online EVENTS As a response to the pandemic, social restrictions and lockdowns PA members and people associated with the PA facilitated a programme of free online events to reach out to people in the UK and abroad. The aim was to create spaces where individuals feeling stranded during the pandemic could meet to discuss a range of topics and share ideas and experiences about the situation we find ourselves in.

Events included, THE LIFE WE ARE LIVING, facilitated by Paul Atkinson, PHILOSOPHICAL DISCUSSIONS facilitated by Kevin Ball, The Choir with No Name workshop facilitated by Sam Chaplin, POEMS SHARED & READ facilitated by Emma Stroker, ART INSIDE by Amy Ison & Andrea Heath, SATURDAY DROP- IN by Melike Kayhan & Andrea Heath, DIALECTICS OF LOCKDOWN facilitated by Rob White and ART DISCUSSION facilitated by Amy Ison, Andrea Heath, Rob White.

The Project Proposal Room 6 to be used by qualified psychotherapists (or trainees in their final year) to work with clients under the cost of £35. This could include supervision and therapy for trainees or students on the study programme and psychotherapy training. The room can be booked at £20 per da y or £10 half day.

The idea is to create a reciprocal arrangement for members doing low fee work for the charity who can also use the space for meetings, peer discussions, reading and supervision groups. The room (actual or symbolic) is an opportunity for members to have a space to meet, study and think about our work together. It could also appeal to members living outside north London who could travel to Marty's Yard for a day or half a day.

It has been difficult to realise the project because of Covid restrictions but people may start returning to in person work or would like to work remotely from Marty's Yard. If anyone would like more information feel free to contact me or book the room via the office. Do also get in touch if you have any ideas about future events. - - The room has been in use since August 2021 since COVID- 19 restrictions have been relaxed. Currently the room is used for three and a half days a week and 17 clients are receiving open-ended low fee therapy weekly (Between £10 and £35). 10 people who participated in the vets have now enrolled on the study programme. Andrea Heath 16/09/2021

Thank you to all the facilitators involved in the project, to Frederikke Frydenlund who put so much work into designing the main flyers and Michele Morgan who attended to all the administration and advertising around this project, responding to participants often late on a Friday evening. Special thanks to Lucy King who has attended every event to support the project. The CofM would like to thank Andrea Heath, the architect of this project.

Finally, I would like to thank my colleagues on the Council of Management, Emma Stroker, Amanda Ferozha and Jake Osbourne who continued to work hard and support the organisation during these unprecedented times. In particular, I would like to thank Ian McMillan with whom I have shared the role as Co-Chair. Job sharing is not an easy thing to do and requires a lot of open and transparent communication. Despite the many challenges we have faced over the past 14 months, Ian has worked tirelessly, late into most evenings, and this has helped us navigate the many difficulties of the past year and hopefully contributed to the healthy position the organisation currently finds itself in.

Page 5

Philadelphia Association Limited

Report of the Trustees

for the Year Ended 31 March 2021

FINANCIAL REVIEW

In the year ending March 31st, 2021, the Association generated a net deficit on unrestricted funds of £4,651 (compared to a surplus of £55,088 in the previous year) on an income of £151,456.

Reserves policy

The Association has a major maintenance fund and a general fund. The level of the general fund has been set at six months' costs, which at the current level of expenditure is about £80,000. The level of the major maintenance fund is three years' expected expenditure, or £90,000.

The basis and level of the reserve funds will be reviewed in the coming year (and thereafter on an annual basis) and will be approved by both the Council of Management and the Trustees.

Investment policy

The Association's policy is to generate a market level of interest from its reserves by putting surplus funds on deposit.

£247 interest was earned (last year: £1,234) from the Association's CCLA Charities Deposit Account.

FUTURE PLANS

Looking to the future, the Trustees' priorities are to assist the Council of Management in making the most effective use of the Association's resources, to encourage new ideas, and to provide a framework for stability and growth.

We would like to offer many thanks to Peter Upton as Independent Examiner.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Association is governed by its Memorandum and Articles of Association, supplemented by its bye laws.

The governance of the Association is in the hands of its Trustees, the majority of whom are not members of the Association. The Trustees are co-opted by the Trustees and (re-)elected by Members of the Association at each Annual General Meeting.

The day-to-day management of the Association is carried out by the Council of Management, which is elected by the membership of the Association.

Much of the work of the Association is carried out through committees, which report to, and are also represented on, the Council of Management.

The Association does not have any related charitable body or other entity of any kind. It is a member of the United Kingdom Council for Psychotherapy, by whom its psychotherapy training programme is validated and with which its therapists are registered.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

00845037 (England and Wales)

Registered Charity number

242475

Registered office

4 Marty's yard 17 Hampstead High Street London NW3 1QW

Page 6

Philadelphia Association Limited

Report of the Trustees

for the Year Ended 31 March 2021

Trustees

During the year under review the Trustees of the Philadelphia Association Limited were:

Mark Elmer (Counsellor/psychotherapist elected 2008; Chair since 2017) Morag Cleland (Therapist elected 2015) Steven Bluestone (Accountant; elected pre-2008) Lois Colling (Psychiatrist; co-opted 2017) Joachim Richter (Legal Knowledge & Information Manager: co-opted 2019)

In June 2021 the following Trustees left The Philadelphia Association: Caroline Cole and Nick Mercer

Council of Management

As of October 2021 the members of the Council are:

Andreas Constantinos (Co-opted 2018; Treasurer and Co-Chair) Ian McMillen (Co-opted 2020: Co-Chair) Miles Clapham (co-opted 2021; Chair of Training Committee) Amanda Ferozha (co-opted 2018; Therapy Services) Emma Stroker (co-opted 2019)

In the summer of 2021 Jake Osbourne left the Council of Manangement.

Independent Examiner

Peter Upton FCA CTA Member of the ICAEW Peter Upton Bridge House 2 Bridge Avenue Maidenhead Berkshire SL6 1RR

Bankers

Metro Bank 1 Southampton Row London WC1B 5HA

COIF Charities Deposit Fund St Alphage House 2 Fore Street London EC2Y 5DA

Approved by order of the board of trustees on 4 December 2021 and signed on its behalf by:

M C Elmer - Trustee

Page 7

Independent Examiner's Report to the Trustees of Philadelphia Association Limited

Independent examiner's report to the trustees of Philadelphia Association Limited ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2021.

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:

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

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

  3. 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

  4. 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.

Peter Upton FCA CTA Member of the ICAEW Peter Upton Bridge House 2 Bridge Avenue Maidenhead Berkshire SL6 1RR

9 December 2021

Page 8

Philadelphia Association Limited

Statement of Financial Activities

(Incorporating an Income and Expenditure Account) for the Year Ended 31 March 2021

Unrestricted
funds
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
6,632
Charitable activities
Income from therapeutic communities
84,833
Study programmes and conferences
33,001
Other trading activities
3
26,990
Investment income
4
247
Total
151,703
EXPENDITURE ON
Charitable activities
5
Community expenditure
149,698
NET INCOME/(EXPENDITURE)
2,005
RECONCILIATION OF FUNDS
Total funds brought forward
443,624
TOTAL FUNDS CARRIED FORWARD
445,629		 Restricted
funds
£
-
-
-
-
-
-
6,656
(6,656)
378,365
371,709		 31.3.21
31.3.20
Total
Total
funds
funds
£
£
6,632
1,500
84,833
107,586
33,001
41,509
26,990
58,852
247
1,234
151,703
210,681
156,354
155,593
(4,651)
55,088
821,989
766,901
817,338
821,989		 31.3.21
31.3.20
Total
Total
funds
funds
£
£
6,632
1,500
84,833
107,586
33,001
41,509
26,990
58,852
247
1,234
151,703
210,681
156,354
155,593
(4,651)
55,088
821,989
766,901
817,338
821,989
210,681
155,593
55,088
766,901
821,989

The notes form part of these financial statements

Page 9

Philadelphia Association Limited (Registered number: 00845037)

Balance Sheet

31 March 2021

Notes
FIXED ASSETS
Tangible assets
9
CURRENT ASSETS
Debtors
10
Cash at bank
CREDITORS
Amounts falling due within one year
11
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
FUNDS
12
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Unrestricted
funds
£
63,863
27,006
369,198
396,204
(14,438)
381,766
445,629
445,629		 Restricted
funds
£
371,168
-
541
541
-
541
371,709
371,709		 31.3.21
Total
funds
£
435,031
27,006
369,739
396,745
(14,438)
382,307
817,338
817,338
445,629
371,709
817,338		 31.3.20
Total
funds
£
445,359
24,682
363,140
387,822
(11,192)
376,630
821,989
821,989
443,624
378,365
821,989

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2021 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

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 4 December 2021 and were signed on its behalf by:

M C Elmer - Trustee

The notes form part of these financial statements

Page 10

Philadelphia Association Limited

Notes to the Financial Statements for the Year Ended 31 March 2021

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Philadelphia Association Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

Preparation of the accounts on a going concern basis

Having considered future budgets and cash flows, the trustees confirm that they have no material uncertainties about the entity's ability to continue as a going concern for the foreseeable future

Cash Flow statement

The Trustees have taken advantage of the provisions of FRS102 (SORP2015) for smaller charities and have chosen not to prepare a cash flow statement

Income

This comprises fees receivable from the various House activities and investment income. All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income can be measured reliably.

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

Legacies are recognised on a case by case basis following the grant of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy with the title of the asset having been transferred to the charity.

Investment income is credited to income when it is receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Income from government and other grants, whether 'capital' or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grant have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Expenditure

Liabilities are recognised as expenditure as soon as there is legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of obligation can be measured reliably.

Expenditure is recognised on an accruals basis as a liability is incurred, inclusive of VAT, which cannot be recovered.

Charitable activities comprise mainly of the provision of accommodation including welfare and catering, premises and administrative costs.

Support costs have been allocated to charitable activities. Governance activities comprise organisational administration and compliance with constitutional and statutory requirements. Costs include direct costs of external audit, legal fees and other professional advice.

Tangible fixed assets

In line with the requirements of the Accounting Standard, FRS 102, expenditure on fixed assets is capitalised where the cost (or the value if donated) is in excess of £5,000; otherwise it is written off through the Statement of Financial Activities. Costs of replacements of major equipment and pianos are charged to designated funds set aside for that purpose by appropriations from Revenue.

continued...

Page 11

Philadelphia Association Limited

Notes to the Financial Statements - continued for the Year Ended 31 March 2021

1. ACCOUNTING POLICIES - continued

Tangible fixed assets

Tangible fixed assets are depreciated at rates calculated to write off the cost, less estimated residual value of each asset evenly over its expected life, as follows:-

Long leasehold improvements - 2% per annum Furniture, fittings and equipment - 33 1/3% per annum Plant - 10% per annum

Taxation

The charity is exempt from corporation tax on its charitable activities.

VAT

The charity is registered for VAT but is unable to reclaim all of the input tax incurred. Irrecoverable VAT is charged to the expenditure heading for which it was incurred.

Fund accounting

The different funds are defined as follows:

Restricted funds are those funds which are to be used in accordance with specific instructions imposed by the donor or trust deed.

Unrestricted funds are those funds available to the charity for its general purposes. They include funds designated (Note 6) by the trustees for particular purposes where their use remains at the discretion of the trustees. Amounts may be set aside each year on the basis of expected requirements for major repairs to premises, replacement of major equipment and pianos for use by resident students. A transfer is made from General to Designated Funds and the cost of the repairs or replacements are charged against the fund as they arise.

It is the policy of the trustees to retain in unrestricted funds, amounts which in their judgement, can help to mitigate the short term effects of income volatility and retain funds to generate sufficient income to meet current and future operational activities of the charity.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and in hand

Cash at bank and in hand includes bank accounts, cash and short term highly liquid investments with a short maturity of three months or less from the date of aquisition or opening of the deposit or similar account.

Creditors and provisions

Creditors and provisions 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 and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Investment gains and losses

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening market value (purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and the opening market value (or purchased date if later).

Investments

Investments are a form of basic financial instrument. They are initially recognised at their transaction value and subsequently valued at their fair value at the balance sheet date using the closing quoted market price. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year.

continued...

Page 12

Philadelphia Association Limited

Notes to the Financial Statements - continued for the Year Ended 31 March 2021

1. ACCOUNTING POLICIES - continued

Creditors and provisions Pension scheme

A Stakeholder Pension Scheme is in place now for all staff and is administered by NEST.

Finance leases

Assets obtained under finance leases are capitalised as tangible fixed assets. These assets are depreciated over the shorter of the lease term and their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charges allocated to future periods. The finance element of the rental payment is charged to the Statement of Financial Activities so as to produce a constant periodic rate of charge on the net obligations outstanding in each period.

Estimation uncertainty

In the view of the trustees in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year.

2. DONATIONS AND LEGACIES

2. DONATIONS AND LEGACIES
31.3.21 31.3.20
£ £
Donations 6,632 1,500
3. OTHER TRADING ACTIVITIES
31.3.21 31.3.20
£ £
Membership subscriptions 5,096 4,000
Rents receivable 5,314 54,852
National Lottery Project 16,580 -
26,990 58,852
4. INVESTMENT INCOME
31.3.21 31.3.20
£ £
Deposit account interest 247 1,234

continued...

Page 13

Philadelphia Association Limited

Notes to the Financial Statements - continued for the Year Ended 31 March 2021

5. CHARITABLE ACTIVITIES COSTS

CHARITABLE ACTIVITIES COSTS
Support
Direct costs (see
Costs note 6) Totals
£ £ £
Community expenditure 97,155 59,199 156,354

Premises and staff/supervisory costs are allocated directly to the relevant charitable activities where appropriate. Remaining staff, premises and other support costs are included for the purposes of providing a base for all activities and the trustees do not consider it practical to apportion these costs between the main charitable activities.

6. SUPPORT COSTS

7.

Governance
Management costs Totals
£ £ £
Community expenditure 55,979 3,220 59,199
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
31.3.21 31.3.20
£ £
Depreciation - owned assets 10,328 10,327

8. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2021 nor for the year ended 31 March 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2021 nor for the year ended 31 March 2020.

9. TANGIBLE FIXED ASSETS

COST
At 1 April 2020 and 31 March 2021
DEPRECIATION
At 1 April 2020
Charge for year
At 31 March 2021
NET BOOK VALUE
At 31 March 2021
At 31 March 2020		 Freehold
property
£
667,092
248,971
8,595
257,566
409,526
418,121		 Fixtures
and
Computer
fittings
equipment
£
£
79,846
6,000
53,113
5,495
1,282
451
54,395
5,946
25,451
54
26,733
505		 Totals
£
752,938
307,579
10,328
317,907
435,031
445,359

Freehold land valued at £237,335 included in Freehold properties above has not been depreciated.

The freehold properties, furniture, fixtures and equipment are all used directly for charitable purposes, the remaining assets are used mainly for charitable purposes but are also used in the management and administration of the charity.

continued...

Page 14

Philadelphia Association Limited

Notes to the Financial Statements - continued for the Year Ended 31 March 2021

9. TANGIBLE FIXED ASSETS - continued

The trustees are of the opinion that the freehold properties have a current value in excess of the book cost however it is considered that to obtain a valuation for the properties is too costly.

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Other debtors
Prepayments and accrued income
11.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Social security and other taxes
Other creditors
Net pay control
Accruals and deferred income
12.
MOVEMENT IN FUNDS
Unrestricted funds
General Fund
The Grove Community Fund
Fixed Asset Fund
Maintenance Fund
Development Fund
Restricted funds
Capital Reserve
TOTAL FUNDS		 31.3.21
£
24,243
2,763
27,006
31.3.21
£
1,190
6,514
1,048
5,686
14,438
Net
movement
At 1.4.20
in funds
£
£
282,747
5,677
25,451
(1,553)
40,426
(2,119)
90,000
-
5,000
-
443,624
2,005
378,365
(6,656)
821,989
(4,651)		 31.3.20
£
21,585
3,097
24,682
31.3.20
£
-
5,506
-
5,686
11,192
At
31.3.21
£
288,424
23,898
38,307
90,000
5,000
445,629
371,709
817,338

Page 15

continued...

Philadelphia Association Limited

Notes to the Financial Statements - continued

for the Year Ended 31 March 2021

12. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General Fund
The Grove Community Fund
Fixed Asset Fund
Restricted funds
Capital Reserve
TOTAL FUNDS		 Incoming
Resources
Movement
resources
expended
in funds
£
£
£
151,703
(146,026)
5,677
-
(1,553)
(1,553)
-
(2,119)
(2,119)
151,703
(149,698)
2,005
-
(6,656)
(6,656)
151,703
(156,354)
(4,651)

Comparatives for movement in funds

Unrestricted funds
General Fund
The Grove Community Fund
Fixed Asset Fund
Maintenance Fund
Development Fund
Restricted funds
Capital Reserve
TOTAL FUNDS
Comparative net movement in funds, included in the above are as follows:
Unrestricted funds
General Fund
The Grove Community Fund
Fixed Asset Fund
Restricted funds
Capital Reserve
TOTAL FUNDS		 Net
movement
At
At 1.4.19
in funds
31.3.20
£
£
£
217,332
65,415
282,747
27,004
(1,553)
25,451
42,544
(2,118)
40,426
90,000
-
90,000
5,000
-
5,000
381,880
61,744
443,624
385,021
(6,656)
378,365
766,901
55,088
821,989
Incoming
Resources
Movement
resources
expended
in funds
£
£
£
210,681
(145,266)
65,415
-
(1,553)
(1,553)
-
(2,118)
(2,118)
210,681
(148,937)
61,744
-
(6,656)
(6,656)
210,681
(155,593)
55,088

Page 16

continued...

Philadelphia Association Limited

Notes to the Financial Statements - continued for the Year Ended 31 March 2021

12. MOVEMENT IN FUNDS - continued

Designated funds

The Grove Community Fund mainly consists of a rebuilding fund. The rebuilding work was completed in 1998 at a cost of £64,096.

The Fixed Asset Fund identifies those funds that are not free funds and it represents the net book value of tangible fixed assets other than those included in other designated funds and the Capital Reserve.

Two other funds have been designated by the Trustees. One is for long term property maintenance and the other for immediate development projects.

Restricted funds

The restricted funds of the charity consist of funds received from specific fund raising ventures which have subsequently been used for the purchase of the freehold properties of the charity or other purposes.

The Capital Reserve consists of funds raised for the purchase and maintenance of freehold properties of the charity.

13. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2021 or 31 March 2020.

Page 17

Philadelphia Association Limited

Detailed Statement of Financial Activities for the Year Ended 31 March 2021

Detailed Statement of Financial Activities
for the Year Ended 31 March 2021
31.3.21 31.3.20
£ £
INCOME AND ENDOWMENTS
Donations and legacies
Donations 6,632 1,500
Other trading activities
Membership subscriptions 5,096 4,000
Rents receivable 5,314 54,852
National Lottery Project 16,580 -
26,990 58,852
Investment income
Deposit account interest 247 1,234
Charitable activities
Therapeutic community rents 84,833 107,586
Study programmes and conferences 21,794 24,350
Introductory course and other fees 11,207 17,159
117,834 149,095
Total incoming resources 151,703 210,681
EXPENDITURE
Charitable activities
Rates and water 6,350 2,885
Light and heat 6,749 3,651
Telephone 2,490 1,798
Postage and stationery 476 1,320
Maintenance 7,774 12,546
Training 874 2,108
House and therapist administration 5,381 4,502
Independent therapy 3,654 4,013
House meetings and support 44,670 32,607
Licences 158 364
Event costs 272 310
Cleaning and sundry expenses 3,294 5,571
Subscriptions 950 -
Honoraria and tutorials 7,716 14,499
Promotions & publicity 144 600
Freehold property 6,203 6,203
97,155 92,977
Support costs
Management
Rates and water 5,759 5,817
Insurance 4,479 4,516
Carried forward 10,238 10,333

This page does not form part of the statutory financial statements

Page 18

Philadelphia Association Limited

Detailed Statement of Financial Activities for the Year Ended 31 March 2021

Detailed Statement of Financial Activities
for the Year Ended 31 March 2021
31.3.21 31.3.20
£ £
Management
Brought forward 10,238 10,333
Light and heat 2,493 2,235
Computers 1,799 504
Administration 32,203 33,157
Repairs 1,559 2,544
Therapy aid 1,861 4,479
Travel - 558
Library 1,700 415
Freehold property 3,674 3,674
Fixtures and fittings 452 450
55,979 58,349
Governance costs
General 70 1,387
Independent examiner 2,400 2,400
Bank charges 750 480
3,220 4,267
Total resources expended 156,354 155,593
Net (expenditure)/income (4,651) 55,088

This page does not form part of the statutory financial statements

Page 19