**INSTITUTE OF FAMILY THERAPY (A company limited by guarantee and not having a share capital)** ## **Financial Statements** **For the year ended 31 August 2022** **Company Number: 1621020 Charity Number: 284858** **INSTITUTE OF FAMILY THERAPY** ## **Trustees' Report For the year ended 31st August 2022** ||**Page**| |---|---| |Trustees' Report|1 to 9| |Auditor's Report|10 to 13| |Statement of Financial Activities|14| |Balance Sheet|15| |Statement of Cash Flows|16| |Notes to the Accounts|17 to 30| **INSTITUTE OF FAMILY THERAPY** ## **Trustees' Report For the year ended 31st August 2022** |**Company Number:**|1621020| |---|---| |**Charity Number:**|284858| |**Registered Office:**|1-4 Great Tower Street| ||London| ||EC3R 5AA| |**Trustees**|Cath Connolly| ||Philip Dick| ||Alastair Pearson| ||Marc Raven| ||Graham Stedman| ||Kathleen Waters| |**Auditors:**|Price Bailey LLP| ||24 Old Bond Street| ||London| ||W1S 4AP| |**Director:**|Rachel Watson| |**Solicitors:**|Mills & Reeve| ||1 St James Court| ||Whitefriars| ||Norwich| ||NR3 1RU| Page: 1 **INSTITUTE OF FAMILY THERAPY** ## **Trustees' Report For the year ended 31st August 2022** ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **Organisational Structure** The Institute’s governing document is the “Memorandum and New Articles of Association of the Institute of Family Therapy” dated 22nd January 2015. The Board consists of trustees who are also directors of the Company. The Board of Trustees convenes two sub-committees; the Finance and General Purposes Committee, which has delegated authority to make decisions on behalf of the Board, and the Ethics SubCommittee which reports to the full Board. Terms of reference are set by the Board for the following purposes: - To set the strategic objectives of the charity. This is done with the advice of the Director - To set the parameters within which the Director and staff achieve those objectives (e.g. the budget and policy framework) - To monitor progress and to take action accordingly The Board of Trustees is not concerned with the day-to-day management of the charity, which is delegated to the Director and senior management team ## **Risk Management and the Board of Trustees** The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. To achieve this, the Board of Trustees has established a risk register that logs risks and the planned action to mitigate them. Identified risks include the following: - As an organisation that primarily generates income from the provision of various types of training and - • family therapy related services, any circumstances or events that impinge on IFT’s ability to do so. Mitigation – IFT seeks to continually widen its income sources through new courses and trainings to sectors over and above those on which it traditionally relied. - Inability to achieve all the required external approvals and accreditations so that IFT can continue to deliver its courses and training. Mitigation - The “Academic Partner” section below details how IFT is evolving its learning and accreditation partnership structures to provide it with the required level of validation and support. - Inability to attract and retain the appropriate numbers of staff and tutors of sufficient quality effectively to manage the organisation and deliver its training and courses. Mitigation – by actively identifying and recruiting experienced and skilled professionals for whom tutoring with IFT can form part of their personal and career development objectives, we endeavour to build a bank of training resource on which we can draw. - Failure to respond to the changing needs of the society it serves, for example calls for increased diversity in its courses, CPD and staffing, leading to reputational impact and reduced relevance of IFT within the society it seeks to serve. Mitigation – the “Staffing” and “Diversity & Inclusion” sections in “Main Achievements in 2021-22” below detail how IFT is addressing this issue. - Lack of sufficient internal and external controls, oversight and challenge to ensure that IFT maintains robust financial and operational standards to meet best practice. Mitigation – we have recently added a trustee with financial expertise to the Board, and the change of financial auditor in 2021 enhanced the rigour of the external financial oversight. The Ethics Sub-Committee and the Finance and General Purposes Sub-Committee report to the Board of Trustees. Each sub-committee includes up to 3 Board members and either the Director of IFT or the Director of Operations, or Lead for Strategy and Finance. Page: 2 **INSTITUTE OF FAMILY THERAPY** ## **Trustees' Report For the year ended 31st August 2022** The Finance and General Purposes Sub-Committee is chaired by the Chair of Trustees. This monitors and reviews the financial performance of IFT. During 2021-22 the continued focus was in ensuring the financial stability of the organisation. The Finance and General Purposes Sub-Committee has delegated powers and reports decisions to the Board of Trustees at its regular meetings. The policy framework of IFT is reviewed and meets current legislative requirements. Where alterations have been required in policy, the Director has engaged an expert in the field to ensure that the organisation meets statutory and human resources standards. This has been the case for HR standards in 2021-22. The Ethics Sub-Committee reviews any ethical dilemmas that have emerged either through complaints or practice issues in relation to the delivery of services. As a member of the Complaint’s Processes of the United Kingdom for Psychotherapy, many of the practice complaints are heard in that context. Where there are complaints that do not fall into that category, IFT has a robust policy that applies and the Ethics Subwould be actively involved in creating a panel to respond to complaints. Further details on the main risks to the charity can be seen under the Future Plans and Challenges section of this report. ## **Health and Safety** IFT monitors health and safety issues through reporting of any incident in an Accident Log. The Accident Log records the following information: details of the person having the accident, details of the person completing the report, details of the accident and what happened as a result and a note of any follow up action that might be required. There were no recorded accidents in 2021-22, nor were there any in 2020/21. Page: 3 **INSTITUTE OF FAMILY THERAPY** **Trustees' Report For the year ended 31st August 2022** ## **Remuneration Policy** Each April the Board of Trustees reviews the remuneration policy with a view to bringing key management and staff salaries in line with the relevant benchmark. By this date, the mid-point of the financial year will have been reached and it will be clear whether there is the possibility of awarding any increases. The benchmark for Directorate staff is the NHS Agenda for change salary scale and, for the administrative staff, an annual review of voluntary organisations will be undertaken. The aim is to ensure a fair remuneration for staff, reflecting performance and comparable market rates. ## **Succession planning for the Board of Trustees** It has been very useful to the board to have a steady membership with diverse skill sets since January 2020. This has been useful during the challenges of the last two years including responding to premises changes, COVID challenges and associated risks. The board recognises the need for greater participation from service users, clients and students and currently is establishing a working party to ensure appropriate participation at all levels of the organisation. The board also recognises the need to review the sub-committees and their functions to ensure appropriate up to date and transparent governance frameworks that are continuously under review and may include external expertise. ## **Academic Partner** We have decided to leave the partnership with the University of Bedfordshire. The students currently registered are not effected and the university and IFT will together ensure their completion of the current courses in their entirety under a ‘teach out’ agreement. IFT spent much of this year undertaking the review by the Office for Students of IFT’s academic processes, learning resources and facilities and support from academic partners. The process identified areas where there was not appropriate levels of support to ensure that it was possible for IFT courses to align with new, more stringent, government guidelines and regulations for academic standards going forward. IFT was given contradictory advice by the university as to whether it was necessary to register with the Office for Students and this was a resource intensive exercise. IFT is working on alternative options that would ensure and learning partners or accrediting bodies are able to provide appropriate support to IFT as a small learning provider of specialised courses. Page: 4 **INSTITUTE OF FAMILY THERAPY** **Trustees' Report For the year ended 31st August 2022** ## **OBJECTIVES AND ACTIVITIES** ## **Objectives and aims** The objects of the charity set out in the governing document are "the advancement of the science and skill of family therapy and systematic practice and related services". ## **Public benefit** The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard for the Charity Commission's general guidance on public benefit. In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission’s guidance on public benefit, including the guidance ‘public benefit: running a charity (PB2) _’._ The training portfolio with traditional delivery at IFT and agency based training in home agencies continues to be successful and extends the reach of systemic ideas into new professional contexts. IFT also continues to provide a low-cost therapy service directly to families, couples and individuals as part of the training process at the MSc level of Family and Systemic Psychotherapy course. The fee structure is based on a sliding scale to accommodate the lowest level of income. ## **MAIN ACHIEVEMENTS IN 2021-22** ## **Premises** We have continued to recover from the COVID pandemic and sought to establish more hybrid working and teaching environments, Feedback has been overwhelmingly positive. Staff, students and families have given hugely positive feedback on how the building creates an environment where all are welcome and open, transparent and engaging learning can take place. We are slowly gaining room rental increases from different sources. ## **Staffing** As part of the review, we have restructured staffing in all areas of our services, including establishing posts that can effectively contribute to implementing the strategic plan. IFT teaching staff continues to increase to accommodate the needs of up-to-date and relevant satellite training courses and tutors and supervisors make up a team of people who are more diverse than ever in background and experience. This enables students and families to experience teaching and therapeutic work with a staff team that represents them in more varied aspects of professional experience, as well as more wide-ranging social differences being reflected in the staff team. IFT increased tutor pay for the first time in 6 years as a recruitment and retention strategy. Page: 5 **INSTITUTE OF FAMILY THERAPY** **Trustees' Report For the year ended 31st August 2022** ## **Infrastructure** IFT has implemented further changes, not just in staffing but in all aspects of its infrastructure, to ensure good governance and appropriate accountability and responsibility can be overseen by the board and the executive team. Areas that have been continued to be attended to have been financial accounting and reporting, IT processes including data protection and GDPR governance processes. ## **Diversity and Inclusion** In the current climate we are continually reminded of our pledge to oppose oppression, racism and hate and to learn and listen to and stand in solidarity with those who experience oppression in all its forms. We need to act in ways that will ensure change, not just for now, but sustained into the future and reflect our ability to influence IFT is committed to continued dialogue with students and staff to enable them to work together and help shape our organisation, in our practice and through all our training, with respect and courage. We continue to review how our actions shape how the organisation develops, in our handbooks, our review of curriculums, our ## **Course Delivery** Recovering from COVID restrictions, much academic work is being carried out on-line and courses are delivered in a hybrid of on-line and face to face, and this is mostly very successful. Students have been able to access the training and support needed to complete the courses and the flexibility means we are able to ## **Satellite Courses** IFT has continued to develop its training portfolio in other organisations, which includes new contracts with Local Authority Children’s Services Departments such as Kent and Southampton, and contracts in other settings. IFT continues to be agile in developing new training where there continues to be a shift in emphasis to reflect increased interest in bespoke, short practice courses where training is delivered to higher numbers of people and with briefer, more focused, content. Local authority settings in particular are under a great deal of strain and training spending is overall lower than pre-COVID. ## **Workshops and shorter trainings** IFT are experimenting with different kinds of delivery in this area in order to maximise the potential of our offer to address cutting- edge clinical concerns and relevant, varied and diverse content. This is in the context of the current saturated market particularly with a proliferation of free online trainings. IFT is working to find our pitch and niche in this market where the contribution to the field is obviously wanted and needed. ## **Social Media and messaging** IFT has established an increased social media presence and our messaging is beginning to reach wider audiences. See our Twitter, Linked-in, Instagram and Facebook pages. We have received excellent feedback on this increased activity. Page: 6 **INSTITUTE OF FAMILY THERAPY** **Trustees' Report For the year ended 31st August 2022** ## **STAFF** Our team continued to meet the challenges of working flexibly under COVID restrictions, successfully delivering services to students and families. As at 31 August 2022, our team was as follows: Rachel Watson Director Joanne Jackson Lead for Quality, Culture & Development Bhawna Barakda Lead for Curriculum Development Robyn Galloway Senior In-House Academic Administrator Annamaria Papayova Senior In-House Clinical Administrator Ashley Reid Finance & Strategy Lead Nadia Tosic Director of Operations Angela Vanriel Senior Business Development Manager – CPD Viji Brad Book-keeper Grace Boateng Office & Marketing Business Support ## **FINANCIAL REVIEW** ## **Results and funding** The statement of financial activities for the year is set out on page 14-16 of this document and shows an overall net deficit for the year of £84,999 compared to a deficit of £204,560 for the previous year. Management and trustees are keenly aware of the financial challenges IFT faces and remain pragmatic as to how they respond to them in order to meet their duties and work in the best interests of all stakeholders. Encouragingly, IFT saw positive growth in our revenue compared to the previous year, arresting the trend of decline of the last few years. This is a positive outcome of the bold management actions taken in the recent past and hopefully one that can be maintained in the future. We also saw an increase in costs. Some of these relate to the general cost of living pressures seen by all, and also those related to our full re-entry into our offices and much needed investment in our infrastructure. Similarly to last year, no transfers were made from the Robin Skynner fund to general funds. Whilst the restrictions on this fund enable it to be used to cover most of the Institute's activities, the Trustees are aware of the need to preserve this resource for future developments. IFT does not have any outstanding loans or financing arrangements. Total cash reserves at the end of the financial year were £678,423 (2021: £668,590). Total net assets amount to £559,662 (2021: £644,661), of which £508,114 are unrestricted funds (2021: £592,813) and £51,548 are restricted funds (2021: £51,848). Following a detailed review, whilst the Trustees are mindful of the challenges faced by IFT, and the need for a return to sustainable financial outcomes, they conclude that these reserves provide sufficient resources for IFT to be considered a going concern for at least twelve months from when the financial statements are authorised for issue. ## **Reserves policy** The Institute needs to hold 'free reserves' (unrestricted funds not designated for a specific purpose and in excess of amounts invested in tangible fixed assets) so that it can continue its activities in periods where funding does not cover expenditure. The Trustees adopted a policy whereby free reserves should be held which amount to at least 6 months’ operating expenditure not relating to income generated from the services provided by the Institute. On this basis, there would be a requirement for reserves of approximately £375,000. The Trustees conclude that this requirement is met given the level of free reserves. Page: 7 **INSTITUTE OF FAMILY THERAPY** **Trustees' Report For the year ended 31st August 2022** ## **Fundraising policy** IFT had no fundraising activities requiring disclosure under The Charities (Protection and Social Investment) Act 2016. As the Institute undertakes no fundraising activities, there is no involvement of third party fundraisers and therefore no complaints were received in the year regarding fundraising practices. ## **FUTURE PLANS AND CHALLENGES** IFT has faced considerable challenges in the last year in post-Covid recovery, and the resources needed for the Office for Students review, as well as slow room rental for the building and agencies struggling with workload pressures and financial pressures making training less of a priority. This has presented financial risks and IFT has mitigated any risks to students who have received a service that they have given excellent feedback for, and staff have been supported to operate with a focus on their well-being as well as help and support to manage considerable change. Implementing the Cranfield Trust recommendations from the year before and the subsequent service review and changes, the board continue to work together to ensure they are meeting their responsibilities for clear accountability and governance of the organisation and future planning that is transparent and confident. Satellite training contracts were still significantly impacted in 2021/22. Many of IFT’s clients have faced challenging circumstances and ongoing issues in recovery from the pandemic and this has led to a reduction in their ability to commit to new training contracts. We were correct in anticipating that the post COVID environment for training within public sector and other settings is fundamentally different in priorities for services in training and clinical practices. Despite this IFT secured new contracts in new areas of work in the NHS and in community settings. This is a positive move to widen the scope of our income streams, and IFT also developed new partnerships to train into new areas such as family law which show promise, including new methodologies of training, embracing digital platforms. We know that IFT must continue to be flexible and responsive to the changing professional environment in the NHS and Social Care as well as other contexts and participate in conversations around any changes. Efforts must continue to develop a range of training such as short courses that reach new partners and participants without diluting the quality of the teaching and delivery. It is likely that partnerships, both formal and informal, will provide security in new areas of work. IFT must maintain its reputation alongside other systemic training providers and continue to be financially competitive. IFT must also look to develop training that increases access to the profession for trainees of different backgrounds. An increasingly close working relationship with bodies that can externally moderate training aspects can be utilised to address how IFT can play a part in the development of the profession in order that access to family therapy and systemic practice to families and communities can be increased. This may mean IFT can develop trainings that are not dependent on university partnerships, but are no less robust and high IFT has continued to respond to the need to update staffing and infrastructure which has historically suffered from lack of investment and some of the financial challenge has been to continue to ensure appropriate responses to modernised requirements of governance for clinical services and training. Page: 8 **INSTITUTE OF FAMILY THERAPY** **Trustees' Report For the year ended 31st August 2022** ## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** The Trustees (who are also directors of IFT for the purposes 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 directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Institute and of the incoming resources and application of resources, including the income and expenditure, of the Institute for that period. In preparing these financial statements, the directors are required to: - Select suitable accounting policies and then apply them consistently; - Observe the methods and principles in the Charities SORP FRS102 (2019); - 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 a going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Institute's transactions and disclose with reasonable accuracy at any time the financial position of IFT and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of IFT and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Institute’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. ## **Financial Auditors** Price Bailey, a firm with considerable experience in the charities sector, was appointed in 2021 as our independent financial auditor and they have undertaken the independent audit of these accounts. They will be proposed for re-appointment at the forthcoming Annual General Meeting. This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies. ## **On behalf of the Board** Kathleen Waters- Trustee Date: 1st February 2023 Page: 9 **INSTITUTE OF FAMILY THERAPY** **Independent Auditor's Report To The Trustees of Institute of Family Therapy** ## **Opinion** We have audited the financial statements of Institute of Family Therapy (the ‘charitable company’) for the year ended 31 August 2022 which comprise the Statement of Financial Activities (incorporating income & expenditure account), the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. In our opinion the financial statements: - give a true and fair view of the state of the charitable company’s affairs as at 31 August 2022 and of its incoming resources and application of resources, including its income and expenditure, 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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the Directors’ 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 Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Page: 10 **INSTITUTE OF FAMILY THERAPY** **Independent Auditor's Report To The Trustees of Institute of Family Therapy** ## **Other information** The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the trustees' report (incorporating directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the directors’ report included within the trustees’ report has been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - • certain disclosures of trustees’ remuneration specified by law are not made; or • we have not received all the information and explanations we require for our audit; or • the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemption from the requirement to prepare a strategic report. ## **Responsibilities of trustees** As explained more fully in the trustees’ responsibilities statement (set out on page 9), the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Page: 11 **INSTITUTE OF FAMILY THERAPY** **Independent Auditor's Report To The Trustees of Institute of Family Therapy** In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. ## **Auditor’s responsibilities for the audit of the financial statements** 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below: We gained an understanding of the legal and regulatory framework applicable to the Charitable Company and the sector in which it operates, and considered the risk of the Charitable Company not complying with the applicable laws and regulations including fraud in particular those regulations directly related to the financial statements, including financial reporting, and tax legislation. In relation to the operations of the Charitable Company this included compliance with the Charities Act 2011 and Companies Act 2006. The risks were discussed with the audit team and we remained alert to any indications of non-compliance throughout the audit. We carried out specific procedures to address the risks identified. These included the following: Reviewing minutes of Board meetings, reviewing any correspondence with the Charity Commission, agreeing the financial statement disclosures to underlying supporting documentation, review of legal fees, and making enquiries of management and officers of the Charitable Company. Management override: To address the risk of management override of controls, we carried out testing of journal entries and other adjustment for appropriateness. We also assessed management bias in relation to the accounting policies adopted and in determining significant accounting estimates. Because of the inherent limitations of an audit, there is the risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involved intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-andguidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. Page: 12 **INSTITUTE OF FAMILY THERAPY** ## **Independent Auditor's Report To The Trustees of Institute of Family Therapy** This description forms part of our auditor’s report. ## **Use of this report** This report is made solely to the charitable company’s trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s 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 charitable company and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed. ## **………………………………………………………….** Michael Cooper-Davis FCCA ACA (Senior Statutory Auditor) For and on behalf of **Price Bailey LLP** 24 Old Bond Street London W1S4AP Date: 14 February 2023 Page: 13 ## **INSTITUTE OF FAMILY THERAPY** ## **Statement of Financial Activities (Incorporating the Summary Income and Expenditure Account) For the year ended 31st August 2022** |**Note**
**INCOME**
**Donations and legacies**
2
3
Training
Membership services
**Investment income**
4
**Other income**
5
**Total income**
**EXPENDITURE**
**Charitable Activities**
Training
6
Membership Services
6
**Total expenditure**
**Net (expenditure)**
16
Transfers of previous expenditure
20
**Net movement in funds**
**Total funds b/fwd as previously stated**
Prior Year Adjustment
20
Adjusted opening balance
**Total Funds Carried Forward**
20
**Charitable activities**
(Losses) / gains on pension scheme
deficit reduction provision|**Unrestricted**
**Funds**
**£**
15,636
918,366
6,930
1,146
2,612
**944,690**|**Restricted**
**Funds**
**£**
-
-
-
-
-
**-**|**Total**
**2022**
**£**
15,636
918,366
6,930
1,146
2,612
**944,690**|**As Restated**
**Total**
**2021**
**£**
5,114
655,298
7,500
869
820| |---|---|---|---|---| |||||**669,601**| |||||| |||||| ||1,005,800
23,889|-
-|1,005,800
23,889|853,880| |||||20,281| ||**1,029,689**|**-**|**1,029,689**|| |||||**874,161**| ||(84,999)
300
(84,699)
582,443
10,370
592,813
**508,114**|-
-
(300)
(300)
51,848
-
51,848
**51,548**|(84,999)
-
(84,999)
634,291
10,370
644,661
**559,662**|| |||||(204,560)
-
-| |||||(204,560)
836,006
13,215
849,221
**644,661**| The notes on pages 17 to 30 form an integral part of these accounts and all activities are continuing. Page: 14 ## **INSTITUTE OF FAMILY THERAPY** ## **Balance Sheet as at 31st August 2022** |**Note**
**Fixed Assets**
Tangible fixed assets
13
**Current Assets**
Debtors
14
Cash at bank and in hand
**Creditors: Amounts falling due**
**within one year**
15
**Net Current Assets**
**Total assets less current liabilities**
**Provisions for liabilities**
16
**Total Net Assets**
**Funds**
Unrestricted funds
20
Restricted funds
20
**Total Funds**|**2022**
**£**
217,705
678,423
896,128
(427,345)|**As**
**Restated**
**2022**
**2021**
**£**
**£**
127,997
85,762
668,590
754,352
(211,328)
468,783
596,780
(37,118)
**559,662**
508,114
51,548
**559,662**|**As**
**Restated**
**2021**
**£**
143,816
543,024| |---|---|---|---| ||||686,840
(42,179)| ||||**644,661**| ||||592,813
51,848| ||||**644,661**| These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime within Part 15 of the Companies Act 2006. The notes on pages 17 to 30 form an integral part of these accounts and all activities are continuing. 1st February 2023 Approved by the Board of Trustees, authorised for distribution, on …………………………………………. and signed on their behalf by: ...................................................... ## **Kathleen Waters, Trustee** ## **Company Registration Number: 1621020** Page: 15 ## **INSTITUTE OF FAMILY THERAPY** ## **Statement of Cash Flows for the Year Ended 31st August 2022** |**Note**
**2022**
**£**
**Cash Flows (used in) / provided by operating activities**
Net cash flow (used in) / provided by operating activities
**22**
26,955
**Cash flows from investing activities**
1,146
Overpayment previously allocated to defined benefit multiemployer pension scheme
Payments to acquire tangible fixed assets
(18,268)
**Net cash flows (used in) investing activities**
(17,122)
**Change in cash and cash equivalents in the year**
9,833
**Cash and cash equivalents at beginning of the year**
668,590
**Cash and cash equivalents at end of the year**
**678,423**
**Analysis of cash and cash equivalents**
**2022**
Cash at bank and in hand
-
Short term deposits
678,423
**678,423**
**Analysis of changes in net debt**
**1 September**
**2021**
**Cash**
**Flows**
**£**
**£**
**Cash**
668,590
9,833
**Total**
**668,590**
**9,833**
Investment income and interest received|**As Restated**
**2021**
**£**
(119,848)| |---|---| ||869
10,370
(5,219)| ||6,020| ||(113,828)
782,418| ||**668,590**| ||**2021**
**£**
88,935
579,655| ||**668,590**| ||**31 August**
**2022**
**£**
678,423| ||**678,423**| The notes on pages 17 to 30 form an integral part of these accounts and all activities are continuing. Page: 16 **INSTITUTE OF FAMILY THERAPY** ## **Notes to the Accounts For the year ended 31st August 2022** ## **1 Accounting Policies** ## **Basis of Preparation of the Financial Statements** These financial statements are prepared on a going concern basis, under the historical cost convention. The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The charitable company is a public benefit entity for the purposes of FRS 102 and therefore the charitable company also prepared its financial statements in accordance with 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 (The FRS 102 Charities SORP), the Companies Act 2006 and the Charities Act 2011. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest pound. The principal accounting policies adopted in the preparation of the financial statements are set out below. ## **Going Concern** The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the charity’s forecasts and projections and have taken account of pressures on donation and charitable income. After making enquiries the trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements. Sensitivity analyses have been applied to the forecasts to assess a range of potential impacts. In the analyses, a variety of assumptions were modelled with varying degrees of impact and duration. Whilst there is evidence of negative effects on income and cash flows, the resulting sensitised forecasts continue to support the going concern assumption and the Board of trustees are confident they can take sufficient mitigating action to ensure that available funds will be sufficient for the charity's needs. ## **Income** - _(i) Grants receivable_ Grants receivable are included in the Statement of Financial Activities on an accruals basis when there is entitlement to the income, probability of receipt and the amount can be measured reliably, with grants received for specific purposes treated as restricted income. ## _(ii) Donations and gifts_ All monetary donations and gifts are included in the Statement of Financial Activities on receipt. No value is attributable to donations in kind and these are not included in the income or expenditure account. Donations under Gift Aid, together with the associated income tax recoveries, are credited to the income and expenditure account when the donations are received. ## _(iii) Charitable activities_ Income from charitable activities is accounted for when earned. Page: 17 **INSTITUTE OF FAMILY THERAPY** ## **Notes to the Accounts For the year ended 31st August 2022** ## **Allocation and apportionment of costs** Expenditure, which is charged in the Statement of Financial Activities on an accruals basis, has been classified under headings that aggregate all costs related to the type of activity. Where costs cannot be directly attributed to a particular activity (i.e. support costs) they have been allocated to them on a basis consistent with use of the resources. Support costs have been allocated on the basis of staff time spent on the various activities as this is felt to be a measure of the relative proportion of resources consumed. ## **Tangible Fixed Assets** Tangible fixed assets costing more than £1,000 are capitalised and depreciated over their useful lives and shown in the balance sheet at cost less accumulated depreciation. Depreciation is provided at the following rate: Long leasehold - Over length of lease Fixtures and fittings - 20% on cost Computer equipment - 33% on cost ## **Fund accounting** ## _(i) Restricted funds_ The restricted funds are funds which have been raised for a specific purpose to which their use is restricted, or donations subject to donor imposed conditions. ## _(ii) Designated funds_ Designated funds are funds set aside out of general funds and designated for specific purposes by the Trustees (who in this case are the members of the Council). - _(iii) General fund_ The general fund consists of those funds which the company may use in furtherance of its charitable objectives at the discretion of the Trustees. ## **Leases** Operating lease commitments are provided for in the balance sheet at the time rental payments fall due. Such rental costs are charged to the Statement of Financial Activity as accrued. ## **Members' and professional support** Members of the Institute of Family Therapy support the work of the Institute variously by serving on key committees, developing the policies of the Institute and representing the Institute on other professional bodies. Such members also provide a significant service to members of the public and are key people in developing and running the various training programmes, choosing to accept fees at less than half the standard rate. Income and expenditure does not include the value of this donated time. ## **Retirement benefits** Contributions in respect of the company's defined contribution pension scheme and certain employees' personal schemes are charged to the income and expenditure account for the year in which they are payable to the schemes. The company also participates in the Pensions Trust's Growth Plan, for the directorate. This plan is funded (and not contracted out of the state scheme) and is a multi-employer pension plan. Contributions paid into the Growth Plan up to and including September 2001 were converted to defined amounts of pension payable from normal retirement date. From October 2001 contributions were invested in personal funds which have a capital guarantee and which are converted to pension on retirement. Page: 18 **INSTITUTE OF FAMILY THERAPY** ## **Notes to the Accounts For the year ended 31st August 2022** ## **1 Accounting Policies (continued)** ## **Retirement benefits (continued)** Actuarial valuations of the Growth Plan are carried out every three years to determine its funding position, by comparing the assets with the past service liabilities at the valuation date. If the actuarial valuation reveals a deficit, the scheme's Trustee has the power to agree a recovery plan to eliminate the deficit over a specified period of time either by way of additional contributions from employers and/or investment returns. It is not possible in the normal course of events to identify the share of underlying assets and liabilities belonging to individual participating employers. Accordingly, due to the nature of the Plan, the accounting charge for the period under FRS102 represents the employer contributions payable. However, the charity has been notified of its commitment to the deficit reduction plan payable in additional contributions over a 10 year period. Provision has been made in these accounts for the full liability estimated to fall due under the deficit reduction plan. The balance of regular employer payments payable is recognised in each accounting period as they fall due. ## **Taxation** The charity is exempt from corporation tax on its charitable activities. ## **Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less. ## **Employee benefits** The costs of short-term employee benefits are recognised as a liability and an expense. ## **Financial instruments** The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ 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. With the exceptions of amounts due to and from HMRC, prepayments and deferred income all other debtor and creditor balances are considered to be basic financial instruments under FRS 102. See notes 14 and 15 for the debtor and creditor notes. The balances are reflected initially at transaction price and subsequently at settlement value. ## **Key estimates and judgements** In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. The following judgements and estimates are considered by the trustees to have most significant effect on amounts recognised in the financial statements: - (i) Pension Trust Growth Plan Scheme: The determination of the provision is dependent upon assumptions in relation to the length of the term of the plan arrangement, contribution rates due in the future, actuarial assumptions and changes to underlying interest rates. The assumptions may vary significantly over time. Page: 19 ## **INSTITUTE OF FAMILY THERAPY** ## **Notes to the Accounts For the year ended 31st August 2022** ## **2 Donations and Legacies** |Donations
Grants|**Unrestricted**
**Funds**
**£**
15,636
-
**15,636**|**Restricted**
**Funds**
**£**
-
-
**-**|**Total**
**2022**
**£**
15,636
-
**15,636**|**Total**
**2021**
**£**
5,114| |---|---|---|---|---| |||||**5,114**| Income from donations and legacies totalled £15,636 (2021: £5,114) of which £NIL was attributable to restricted funds (2021: £NIL) and £15,636 was attributable to unrestricted funds (2021 : £5,114). Grant income is £NIL in the year. (2021: £NIL). |**Charitable activities**
Training
Membership services|**Unrestricted**
**Funds**
**£**
918,366
6,930
**925,296**|**Restricted**
**Funds**
**£**
-
-
**-**|**As Restated**
**Total**
**Total**
**2022**
**2021**
**£**
**£**
918,366
655,298
6,930
7,500
**925,296**
**662,798**|**As Restated**
**Total**
**Total**
**2022**
**2021**
**£**
**£**
918,366
655,298
6,930
7,500
**925,296**
**662,798**| |---|---|---|---|---| |||||**662,798**| ## **3 Charitable activities** All income from charitable activities was attributable to unrestricted funds (as was prior year). ## **4 Investment income** |Investment income
All investment income was attributable to unrestricted funds (as was prior year).
**5**
**Other income**
Rent and room hire
Miscellaneous income|**2022**
**£**
**1,146**
**2022**
**£**
2,612
-
**2,612**|**2021**
**£**
**869**| |---|---|---| |||| |||**2021**
**£**| |||-
820| |||**820**| All other income was attributable to unrestricted funds (as was prior year). Page: 20 ## **INSTITUTE OF FAMILY THERAPY** ## **Notes to the Accounts For the year ended 31st August 2022** ## **6 Charitable activities** |**Charitable activities**|||| |---|---|---|---| |Training
Membership Services
Training
Membership Services|**£**
628,661
14,931
**Direct costs**|**Support costs**
**(See note 7)**
**£**
377,139
8,958|**Total**
**2022**
**£**
1,005,800
23,889| ||**643,592**|**386,097**
**Support costs**|**1,029,689**| ||||**As Restated**
**Total**| ||**Direct costs**|**(See note 7)**|**2021**| ||**£**
560,605
13,315
**573,920**|**£**
293,275
6,966
**300,241**|**£**
853,880
20,281| ||||**874,161**| ||||| All of the above costs totalling £1,052,392 were attributable to unrestricted funds (2021: £874,161) |Training
Membership services
**Allocation of Support costs**|||**As Restated**| |---|---|---|---| |||**2022**|**2021**| |||**£**|**£**| |||377,139
8,958|293,275
6,966| |||**386,097**|**300,241**| ## **7 Allocation of Support costs** Support costs, included in the above, are analysised within note 7(b). Page: 21 **INSTITUTE OF FAMILY THERAPY** ## **Notes to the Accounts For the year ended 31st August 2022** ## **7(b) Analysis of Support Costs** |**7(b)**
**Analysis of Support Costs**|||| |---|---|---|---| |Staff costs
Hire of plant and machinery
Cleaning
Property expenses
Depreciation
Other office costs
Governance**(see note 8)**
Remeasurements on scheme valuation
Pension scheme administration expenses
Staff costs
Hire of plant and machinery
Cleaning
Property expenses
Depreciation
Other office costs
Governance**(see note 8)**
Pension scheme administration expenses
|**Training**
**£**
(6,884)
8,758
7,681
155,136
33,296
105,097
63,911
10,129
14|**Membership**
**services**
**£**|**2022**
**£**| |||(163)
208
183
3,685
791
2,496
1,518
241
0|(7,047)
8,966
7,864
158,821
34,087
107,593
65,429
10,370
14
**386,097**| ||**377,139**|**8,958**|| ||**Training**
**£**
9,359
11,060
563
136,710
32,168
42,636
58,000
2,779||| |||**Membership**
**services**
**£**|**As Restated**
**2021**
**£**| |||222
263
13
3,247
764
1,013
1,378
66|9,581
11,323
576
139,957
32,932
43,649
59,378
2,845
**300,241**| ||**293,275**|**6,966**|| ||||| Page: 22 ## **INSTITUTE OF FAMILY THERAPY** ## **Notes to the Accounts** ## **For the year ended 31st August 2022** |**8**
**Governance costs**||| |---|---|---| ||**2022**
**£**
49,992
12,132
3,305|**2021**
**£**| |Staff costs
Audit
Legal and professional||34,634
16,152
8,592| ||**65,429**|**59,378**| |||| |**9**
**Net (expenditure)**
Net (expenditure) is stated after charging:|**2022**
**£**|**2021**
**£**| |||| |Depreciation- owned assets
Hire of plant and machinery
Other operating leases
Auditors' remuneration- current year fee|34,087
8,966
114,527
11,000
**168,580**|32,932
11,323
62,951
8,775| |||**115,981**| |||| ## **10 Trustees' remuneration and benefits** The members of the Council did not receive any remuneration as statutory directors of the company in the current or prior year. ## **11 Trustees' expenses** There were no trustees' expenses reimbursed during the year ended 31 August 2022 (2021: £NIL). **12 Staff costs** |**12**|**Staff costs**||| |---|---|---|---| ||Salaries
Social security costs
Pension costs
**Total Staff costs**
Staff costs have been allocated as shown below:|**2022**
**£**
349,451
34,429
9,407
**393,287**
**2022**
**£**
335,411
14,931
**350,342**
(7,047)
49,992
**393,287**|**2021**
**£**
380,201
34,459
11,572| ||||| ||||**426,232**| ||||**2021**
**£**
368,702| ||||| ||Training
Membership services
**Charitiable activities**
Support costs||| ||||13,315| ||||**382,017**
9,581| ||Governance||34,634| ||||**426,232**| ||The average number of monthly employees during the year was as follows:||| ||Training
Support staff|**2022**
8
3|**2021**
9
7| |||**11**|**16**| Page: 23 **INSTITUTE OF FAMILY THERAPY** ## **Notes to the Accounts For the year ended 31st August 2022** Two employees earned between £60,000 to £70,000 during the current year (2021:1). Pension contributions relating to these individual amounted to £3,200. Key management personnel include the Chief Executive and senior staff reporting directly to the Chief Executive. Total remuneration paid to charity's key management personnel during the year to 31 August 2022 totalled £222,917 (2021: £208,325). No trustee received any remuneration as part of this amount. ## **13 Tangible fixed assets** |**Cost**|**Long leasehold**
**£**|**Fixtures and**
**fittings**
**£**|**Computer**
**equipment**
**£**|**Totals**
**£**| |---|---|---|---|---| |At 1st September 2021|178,582
-
-
**178,582**
41,474
28,080
-
**69,554**
**109,028**
137,108|78,311
15,075
-
**93,386**
75,334
3,557
-
**78,891**
**14,495**
2,977|33,718
3,193
-
**36,911**|290,611
18,268
-| |Additions
Disposals
**At 31st August 2022**||||| |||||**308,879**| |**Depreciation**|||29,987
2,449
-
**32,436**|| |At 1st September 2021||||146,795
34,087
-| |Charge for year
Disposals
**At 31st August 2022**||||| |||||**180,882**| |**Net book value**|||**4,475**
3,732|| |**At 31st August 2022**
At 31st August 2021||||**127,997**| |||||143,817| |||||| |**14**
**Debtors**||||| |Trade debtors
Prepayments and accrued income
**Amounts due within one year**
Rent deposit
**Amounts due after one year**|||**2022**
**£**
142,971
19,259
**162,230**
55,475
**55,475**
**217,705**|**2021**
**£**
9,114
21,173| |||||**30,287**| |||||55,475| |||||**55,475**| |||||| |||||**85,762**| |**15**
**Creditors: Amounts falling due within one year**||||| |Other creditors
Taxation and Social Security
Accruals
Deferred income|||**2022**
**£**
24,642
6,411
92,510
303,782
**427,345**|**2021**
**£**
3,810
12,157
13,998
181,363| |||||**211,328**| Page: 24 ## **INSTITUTE OF FAMILY THERAPY** ## **Notes to the Accounts For the year ended 31st August 2021** ## **Deferred income included in the above, are analysised within note 15a.** ## **15a Deferred income** ||Amount deferred in year
Deferred income 1 September 2021
Amount released to income earned from charitable activities
Deferred income 31 August 2022|**2022**
**£**
181,363
(173,453)
256,272
**264,182**|**2021**
**£**
113,696
(175,590)
243,257| |---|---|---|---| ||||| ||||**181,363**| |**16**
**Provisions for liabilities**||**As restated**| |---|---|---| |Defined benefit deficit reduction payments (See note 16a)
Dilapidations|**2022**
**£**
4,859
32,259|**2021**
**£**
17,179
25,000| ||**37,118**|**42,179**| |||| ## **16a Defined benefit pension provision** The charity participates in the TPT Retirement Solutions – The Growth Plan scheme, a multi-employer scheme which provides benefits to some 950 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme. The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK. The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme. A full actuarial valuation for the scheme was carried out at 30 September 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows: ## **Deficit contributions** From 1 April 2019 to 31 January £11.243m per annum (payable monthly and increasing by 3% each on 1st April) 2025: Unless a concession has been agreed with the Trustee the term to 31 January 2025 applies. Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows: Page: 25 ## **INSTITUTE OF FAMILY THERAPY** ## **Notes to the Accounts For the year ended 31st August 2022** ## **Deficit contributions** From 1 April 2016 to 30 September 2025 £12.945m per annum (payable monthly and increasing by 3% each on 1st April) From 1 April 2016 to 30 September 2028 £54,560 per annum (payable monthly and increasing by 3% each on 1st April) The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities. Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost. |**Reconciliation of opening and closing provisions**
Provision at start of period
Unwinding of the discount factor
Deficit contribution paid
Remeasurements- impact of any change in assumptions
Remeasurements- amendments to the contribution schedule
Provision at end of the period
**Income and expenditure impact**
Interest expense
Remeasurements- impact of any change in assumptions
Remeasurements- amendments to the contribution schedule
**Assumptions**
**2022**
**% per annum**
Rate of discount
4.46|**2022**
**£**
17,179
567
(5,576)
(214)
(7,097)
**4,859**
**2022**
**£**
567
(214)
(7,097)
**(6,744)**
**2021**
**% per annum**
0.63|**As Restated**
**2021**
**£**
21,836
757
(5,414)
-
-| |---|---|---| |||**17,179**| |||**2021**
**£**
757
-| |||**757**| |||**2020**
**% per annum**
0.55| ## **Prior year pension changes** A Prior year adjustment has been made in order to correctly account for the deficit reduction scheme. In previous years plan expenses have been incorrectly included in the overall scheme provision whereas FRS102 only allows a provision to be made for those amounts deirectly contributing to the underlying deficit. This This had the effect of reducing the 2021 liabilities by £10,370 and increasing expenditure by £2,845. The overall funds bought forward increased by £13,215. Page: 26 **INSTITUTE OF FAMILY THERAPY** ## **Notes to the Accounts For the year ended 31st August 2022** ## **17 Operating lease commitments** The following operating lease payments are committed to be paid in total |Total payable:
Less than 1 year|**2022**
**2021**
**£**
**£**
110,949
92,458
147,932
258,881
**258,881**
**351,339**
**Land and Buildings**|**2022**
**2021**
**£**
**£**
3,578
7,143
3,360
2,628
-
**6,938**
**9,771**
**Other**|**2022**
**2021**
**£**
**£**
3,578
7,143
3,360
2,628
-
**6,938**
**9,771**
**Other**| |---|---|---|---| |Between 2-5 years
In more than 5 years|||2,628| ||||| ||||**9,771**| ||||| ## **18 Pension commitments** The company makes contributions to company and group personal pension schemes in respect of the Directorate and certain employees. The payments to these defined contribution schemes are charged in the accounts when payable and amounted to £6,411 (2021: £11,572). Page: 27 ## **INSTITUTE OF FAMILY THERAPY** ## **Notes to the Accounts For the year ended 31st August 2022** **19 Analysis of net assets between funds** |**Unrestricted**
**funds**
**£**
Fixed assets
127,997
Current assets
844,580
Current liabilities
(427,345)
Provisions
(37,118)
**508,114**
**Unrestricted**
**funds**
**£**
Fixed assets
143,816
Current assets
702,504
Current liabilities
(211,328)
Provisions
(42,179)
592,813|**Unrestricted**
**funds**
**£**
Fixed assets
127,997
Current assets
844,580
Current liabilities
(427,345)
Provisions
(37,118)
**508,114**
**Unrestricted**
**funds**
**£**
Fixed assets
143,816
Current assets
702,504
Current liabilities
(211,328)
Provisions
(42,179)
592,813|**Unrestricted**
**funds**
**£**
Fixed assets
127,997
Current assets
844,580
Current liabilities
(427,345)
Provisions
(37,118)
**508,114**
**Unrestricted**
**funds**
**£**
Fixed assets
143,816
Current assets
702,504
Current liabilities
(211,328)
Provisions
(42,179)
592,813|**Restricted**|**Total funds**| |---|---|---|---|---| |||**funds**|**funds**|**2022**| |||**£**|**£**|**£**| |||||| |||127,997
844,580
(427,345)
(37,118)|-
51,548
-
-|127,997
896,128
(427,345)
(37,118)| |||**508,114**|**51,548**|**559,662**| |||||| ||||**Restricted**|**Total funds**| |||**funds**|**Funds**|**2021**| |||**£**|**£**|**£**| |||143,816
702,504
(211,328)
(42,179)|-
51,848
-
-|143,816
754,352
(211,328)
(42,179)| |||592,813|51,848|644,661| |**20**
**Movement in funds reconciliation**||||| ||**Income**
**Expenditure**
**At 1st**
**September**
**2021**|**£**
-
-
**Gains/**
**(losses)**|**Transfers**
**£**
300|**At 31st**
**August 2022**| |**Unrestricted funds**
**General**|**£**
**£**
**£**
519,708
944,690
(1,029,689)
73,105
-|||**£**
**435,009**| |**Designated funds**
Provision for pension liability
(see note 21)
**Total unrestricted funds**||||| |||||**73,105**| ||**592,813**
**944,690**
**(1,029,689)**|**-**|**300**|**508,114**| |**Restricted funds**
(a) Bulgarian project
(b) Robin Skynner Educational|300
-
-
51,548
-
-|-
-|(300)
-|| |||||**-**
**51,548**| |**Total restricted funds**|**51,848**
**-**
**-**|**-**|**(300)**|**51,548**| |||||| (a) The Bulgarian project was set-up some years ago by grants from the British Council to advance family therapy training in Bulgaria. A transfer of £300 was made to reflect reimbursement of previous expenditure on this fund accounted for unrestricted funds. (b) The 'Robin Skynner Educational Fund" represents a legacy from the state of Dr Robin Skynner, which was transferred from the Talbot House Trust for the purposes of advancement of education, including training, at the Institute of Family Therapy. Page: 28 **INSTITUTE OF FAMILY THERAPY** ## **Notes to the Accounts For the year ended 31st August 2022** ## **Comparative information: Movement in funds reconciliation for year ended 31 August 2021** ||**At 1st**
**September 2020**|**Income**|**As Restated**
**Expenditure**|**Gains/**
**(losses)**|**Transfers**|**As Restated**
**At 31st**
**August 2021**| |---|---|---|---|---|---|---| |**Unrestricted funds**
General|**£**
684,158|**£**
669,601|**£**
(874,161)|**£**|**£**
40,110|
**£**
519,708| |**_Designated funds_**
Provision for pension
liability
**Total unrestricted funds**||||||| ||100,000|-|13,215|-|(40,110)|73,105| ||784,158|669,601|(860,946)|-|-|592,813| |**Restricted funds**||||||| |Bulgarian project
300
Robin Skynner Educational
51,548
**Total restricted funds**
51,848|300|-|-|-|-|300| |||-|-|-|-|51,548| ||51,848|-|-|-|-|51,848| |||||||| |Prior year adjustments were made to remove expense elements incorrectly included in the previous
year’s deficit recovery liability for the Pensions Trust (see note 16a for details on the recovery plan).||||||| |||||||| ## **21 Related Party Transactions** There were no related party transactions in the year, nor in the prior year. ## **22 Reconciliation of net (expenditure) to net cashs flow from operating activities** |**Adjustments for:**
Depreciation charges
Investment income
Decrease in provisions
Decrease in debtors
Decrease in creditors
Cash adjustment to prior year
**Net cash used in operating activities**
**Net (expenditure)**|**2022**
**£**
**(84,999)**
34,087
(1,146)
(5,061)
(131,943)
216,017
-|**As Restated**
**2021**
**£**
**(204,560)**
32,932
(869)
2,128
79,149
(29,315)
687| |---|---|---| ||**26,955**|**(119,848)**| Page: 29 **INSTITUTE OF FAMILY THERAPY** ## **Notes to the Accounts For the year ended 31st August 2022** ## **23 Legal Status** The Charity is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity. Page: 30