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2023-03-31-accounts

Annual Report and Accounts

For the year ended 31 March 2023

Institute of Integrated Systemic Therapy

Company number: 01708301 Charity number: 286909

Contents

Page
Our Vision, Mission and Aims 1
The Charity and Integrated Systemic Therapy 1
Chair’s Introduction 2
Trustees’ Report
Our Achievements and Performance 3
Financial Review and the Results for the Year 5
Our Future Plans 7
Risk and Uncertainties 7
Structure, Governance and Management 8
Our Approach to Fundraising 10
Public Benefit 10
Statement of Responsibilities of the Trustees 11
Going Concern 11
Disclosure of Information to the Auditors 12
Independent Auditor’s Report 13
Financial Statements
Consolidated Statement of Financial Activities 16
Consolidated and Company Balance Sheets 17
Consolidated Cash Flow Statement 18
Notes to the financial statements 19
Reference and Administrative Details 34

IiST Annual Report and Accounts 2022/23

1

Our Vision, Mission and Aims

Our Vision

To be the leading provider of therapeutic care, education and treatment for children and young people who have experienced early childhood trauma.

Our Mission

To transform the lives of children and young people who suffer severe emotional and psychological difficulties, so that they can relate well to others and fulfil their potential.

Our Aims

Our aim is to continue to evolve and grow our mission, and to further develop our therapeutic approach, to better meet the needs of our beneficiaries and to maintain long-term sustainability.

We aim to continue to develop our clinical capabilities and positioning to meet the needs of the most traumatised children and young people, whose needs can be met by very few providers.

We aim to continue to demonstrate a unique capacity to create and sustain a group of therapeutic communities for traumatised children and young people. We therefore recognise an obligation to grow our provision and extend its scope to deal with unmet needs. We plan to play our part in better meeting the needs of seriously traumatised children and young people by:

The Charity

The charity’s origins can be traced to 1919, with the foundation of Park House, a Training School for Jewish Boys in Middlesex. In 1947 the school relocated to Peper Harow House in Surrey, evolving in the early 1970s into a pioneering therapeutic community for troubled adolescents, which established the therapeutic values for which the charity is now renowned. Since then, several therapeutic communities and schools have been created and outreach work of various kinds has been undertaken to meet the needs of the day.

Integrated Systemic Therapy

This unique psychotherapeutic approach was developed over 40 years. It aims to heal serious emotional and behavioural trauma, transforming young lives.

iST is rooted in therapeutic tradition and accredited by the UKCP (United Kingdom Council for Psychotherapy). All our staff are fully trained, assuring all children receive 24/7 therapeutic care.

iST provides unconditional presence to behaviours caused by extreme distress, within a safe family environment. Children learn to safely process emotion and relate to others. The aim is a return to mainstream or foster family life.

The Institute of Integrated Systemic Therapy (IiST)

In 2015 Childhood First changed its name to The Institute of Integrated Systemic Therapy to reflect its special status as a clinical training and research organisation. Accordingly, we adapted and refreshed our ‘brand identity’ to reflect the seamless integration of our care, education, training and research. We continue to deliver our therapeutic services for children under the name of Childhood First.

IiST Annual Report and Accounts 2022/23

2

Chair’s Introduction

Welcome to our 2022/23 annual report. This year we have focussed our attention on taking the time to review and make plans for the future of the charity. We have renewed our commitment as an organisation dedicated to providing the very best care to children and young people living with trauma and achieving the very best outcomes for them.

As our therapeutic approach to their treatment is research-led, we remain committed to supporting the learning and development of our professional staff who work with children and young people ensuring that we can be an exemplar within the social care sector.

We are ambitious in providing the highest quality care and this is our top priority. We are committed to using our training and research-led approach to ensure the care and therapy provided to our children and young people is at the cutting edge. The outcomes for the children and young people cared are some of the highest in the sector, providing further evidence that the truly holistic therapeutic approach taken by us gives children and young people living with trauma the very best chance for the future.

Over the next five years we want to increase the profile of the care we provide and the research that underpins it, so we can influence national policy and guidance relating to the care and treatment of children and young people living with trauma, meaning more children and young people could benefit from our approach.

We are also looking to increase our physical presence with a new home, to complement our existing homes in Norfolk and Kent and our Kent school. In addition, we are looking at options to increase the availability of our therapeutic approach beyond our physical homes – allowing more children access to the research-led and evidence-based care we provide.

As well as providing the very best care to children and young people, we also want to be a caring, responsive employer that supports staff to deliver the best outcomes of children, as well as moving forward with their own development as professionals. The training and research opportunities we provide to our staff set us apart as an employer and we hope this will encourage more dedicated staff to join us.

We have reviewed and renewed our charities ‘Values’ by asking our staff what values they think best describe our work, our organisation and our approach. They have decided that the following values encompass everything we are looking to achieve for the children and young people in our care.

Our homes continue to demonstrate a high level of compliance with our statutory requirements with all of our five homes and our school receiving Ofsted inspection ratings of ‘Good’. Our Institute graduation event for staff took place this year in July 2022 and again celebrated the achievements of all of our staff and trainees who, even despite the added difficulties throughout the pandemic were able to complete their studies and achieve their UKCP accredited psychotherapy qualifications.

As we look forward to the coming year, the charity will be launching its new five year Charity Plan. This will articulate the charities vision for the future and how we are going to meet our strategic objectives by providing Therapeutic Effectiveness, ensuring that we treat traumatised children safely and effectively. Providing Sustainable Service Growth, by creating new service capacity and expanding our clinical and management training and Developing our External Profile and Influence through research, conferences and clinical publications. Once again, thank you for taking the time to read our annual report and I look forward to updating you on our progress next year.

Dr Henrietta Hughes OBE

Chair of Trustees

IiST Annual Report and Accounts 2022/23 Trustees’ Report

3

Trustees’ Report

Our Achievements and Performance

We provide specialist 24/7 care, treatment and education for children and young people living with complex psychological trauma, emotional, behavioural, social and educational difficulties.

Our aims in 2022/23

Our aims in 2022/23 were to develop and launch the charity’s new five-year strategic plan and to update our Vision, Mission, Approach and Values.

This year the charity has undergone a complete review of its strategic objectives. Led by the Chief Executive and his team, the charity’s Trustees and staff have participated in a range of strategic engagement events. These events have helped review and formulate the charity’s new five-year strategic plan launched in 2023. This ensures that all internal stakeholders are fully aligned with the new strategic plan from the Trustees to the staff and children throughout the organisation.

These events have also been used to update the charity’s Vision, Mission and Approach. The language has been updated to better reflect the organisation's purpose, approach and values.

Our Vision is to be the leading provider of therapeutic care, education and treatment for children and young people who have experienced early childhood trauma.

Our Mission is to transform the lives of children and young people who suffer severe emotional and psychological difficulties, so they can relate well to others and fulfil their potential.

Our Approach is a form of psychotherapeutic group living and learning modelled on healthy relationships, adapted to the developmental needs of children and young people suffering early childhood trauma. We call this Integrated Systemic Therapy (iST).

This year the charity undertook and wholescale review of its organisational Values. It asked staff to describe what values they felt most appropriately articulated the core beliefs of the charity. The below set of values were what staff decided were how we want to interact and work with each other to achieve the nest possible results for the children and young people in our care.

Our five core Values are:

The new five-year strategy provides a clear roadmap for the charity and will focus on three main areas:

Our Services: Achieving therapeutic effectiveness by treating traumatised children safely and effectively through our clinically based residential, education and family support services.

Our People: Achieving sustainable growth by creating new service capacity and expanding our training through our institute to develop the next generation of clinical and service leaders.

Our Future: Developing our external profile, influence and impact for traumatised children through research conferences and clinical publications.

The charity’s strategic objectives of delivering therapeutic effectiveness, achieving sustainable service growth and developing our external profile and influence has been joined by a detailed plan of thirty-five new strategies, reviews and projects. These are grouped to align with the roles and functions of the executive team, led by the Chief Executive. They represent developments over the next five years in Workforce Development, Quality Improvement, Safeguarding and Compliance, Finance and Central Services and Business Developments.

IiST Annual Report and Accounts 2022/23 Trustees’ Report (continued)

4

Our Achievements and Performance (continued)

What we achieved in 2022/23

In light of the new the Charities Act 2022 which came into effect on 14 June 2023 we conducted a review of our Board governance to ensure that we are both compliant and following best practice. We identified that we are compliant and have initiated a plan to review our governance framework as well as reviewing the skills and diversity of our trustees.

In terms of strategic and operational matters these are a few of the highlights:

We have begun work to create a robust, consistent and repeatable fostering pathway with a therapeutic fostering agency with training for staff to improve the contextual understanding of the service from which our children have come to maximise the potential success of fostering placements.

The training team have delivered several service improvements and more organizational learning in addition to locally delivered theoretical seminars in communities. We have also expanded both the training and roll out of the in-house 1-1 therapy to children who need additional therapeutic support.

We have developed a new research and evaluation strategy to steer the work and disseminate our research and evidence-based practice to wider audiences both internally and externally. We continue to focus our efforts on the upcoming UKCP Organisation Members Review and the developments necessary to meet these continued requirements as well as fully embedding quality improvements in applied clinical practice.

We have been engaged in a management review of one of our therapeutic communities, Gables House during which we assessed all the clinical and operational aspects and made a series of recommendations. This led to improvements in the physical environment, operating culture and the improved effectiveness of the therapeutic model along with the adoption of the new therapeutic facilities.

All our therapeutic communities continue to ensure that the safeguarding practices are maintained at the highest possible standard. During staff inductions all staff are made aware of the correct protocols if they have any safeguarding concerns, and the open culture of the homes promote best safeguarding practice. All Regulation 40 and Ofsted notifiable safeguarding events are reviewed quarterly at the Trustee Safeguarding Committee.

In response to the cost-of-living crisis we conducted a charity wide survey of the circumstances of our staff and how we could best support them. Whilst we learned that food, housing and utility costs were the main challenges we decided the best support we could provide was through a one-off cost-of-living payment which was made to all staff in February 2023.

The fundraising landscape is different as a result of changed economic circumstances post-pandemic. We have therefore started a review of our fundraising strategy in terms of identifying potential future income streams and new strategic partnerships.

We would like to express our immense gratitude to all of our generous benefactors, with special thanks to:

The 29th May 1961 Charitable Trust Barratt Family Charitable Trust The Colyer-Fergusson Charitable Trust The Dyers' Company Charitable Trust The Elizabeth & Prince Zaiger Trust The EQ Foundation Marc Harris Hasluck Charitable Trust The Inverforth Charitable Trust John Black Foundation John Lewis Partnership General Community Fund The Joseph and Lena Randall Charitable Trust Kent Community Foundation The Lynne & Nigel Ross Charitable Trust The Lyon Family Charitable Trust Ian Mess Tonbridge School Tanya Scott-Adie The Tompkins Foundation Michele C Warshaw Whitegates Children's Trust

IiST Annual Report and Accounts 2022/23 Trustees’ Report (continued)

5

Financial Review and the Results for the Year

The annual accounts comprise the consolidation of the holding company and the two subsidiaries: Childhood First (South) which contains Greenfields House, The Gables House in Kent and Oakwood House, and Childhood First (East Anglia) which contains Earthsea House and Merrywood House, The accounts also include non-trading dormant companies Princess Mary’s Trust and Childhood First (Midlands).

Fee income summary

East Anglia
South
Residential
Other income
Total		 2022/23
2021/22
Change
£'000
£'000
£'000
4,749
4,801
(52)
5,010
4,587
423
9,759
9,388
371
244
202
42
10,003
9,590
413

Residential fee income is up by £371k on 2021/22. Average placements declined slightly from 32.75 to 31.4 though we were able to sustain income levels by modest price rises. We achieved growth in capacity in Kent with full occupancy at our new home Oakwood but had vacancies at The Gables. In East Anglia, we had a small decline. Overall our occupancy dropped from 77.3% to 76.5%.

Net surplus / (deficit)

East Anglia
South
Residential
Other incl. pension, investments etc.
Total		 2022/23
2021/22
Change
£'000
£'000
£'000
709
1,237
(528)
(148)
(497)
349
561
740
(179)
(626)
(1,424)
798
(65)
(684)
619

The small decline in occupancy in East Anglia led to a reduction of surplus in the year of £528k whilst we kept staffing levels steady. In Kent the growth in income led to a corresponding reduction in the net deficit of £349k. The other items reflect the increase in unrealized losses on investments, the settlement of the Local Government pension scheme mentioned below and increased staff costs in central services.

Fundraising income was £73k or 41% up on 2022 as we came out of the pandemic. This represents good performance in the context of a challenging economic environment and cost of living crisis.

Total costs

Overall costs have grown by £801k or 9% during the year. Staff costs have risen by £470k and non-staff costs have increased by £331k. These costs have been driven mostly by the cost of living crisis and increase in National Minimum Wage as well as by soaring inflation. We have worked hard to remain competitive on salaries and our employee value proposition which includes therapeutic training. We have also sought, and in the large part succeeded in mitigating increases in other costs such as utilities and have achieved reasonably effective cost control over the course of the year.

Fixed assets

There were only minor investments in vehicles, furniture and equipment in the year.

Debtors and Creditors

Debtors reduced by £104k (18%). Trade creditors reduced by £86k (39%) and represent around two weeks of purchases.

IiST Annual Report and Accounts 2022/23 Trustees’ Report (continued)

6

Financial Review and the Results for the Year (continued)

Cash position

The cash position has remained steady in the year.

Provision for liabilities and charges

We exited from both Local Authority defined benefit pension schemes in this year as anticipated and at the year-end were left only with the liability of the cessation sum for Surrey of £536k which was cleared in April of 2023. No other provisions were required.

Investments

The charity investment policy is to maintain an investment portfolio which seeks to protect the capital value and combine the best long term total financial return with a relatively low risk. In order to achieve this objective, the investment portfolio should be invested in managed investment funds with the following guidelines:

The prime ethical consideration is to avoid any conflict of interest between the charity’s objectives and the activities of any company in which the charity has invested.

The performance of the funds is monitored by the Finance Committee on a regular basis. The Trustees invest principally in managed funds. The value of these investments at the year-end was £3,899k which included an unrealized deficit of £124k compared to an unrealized gain in 2022 of £192k. In the context of the challenging economic environment, trustees consider this reasonable investment performance.

Financial reserves

The Trustees’ reserve policy is to achieve and maintain an appropriate but not excessive level of reserves to support its activities, taking into account the risks to which it is exposed. The charity holds reserves in the form of designated funds that are earmarked by the trustees to represent fixed and other assets which cannot be readily converted into cash. In addition, the charity holds unrestricted funds for the following reasons:

  1. to provide working capital to manage fluctuations in its cash flow;

  2. to provide protection against a serious disruption to its communities;

  3. to provide protection against a decline in the market for our services;

  4. to provide funds for growth; and

  5. to provide for the strategic improvement in the quality of our service quality.

Based on the accounts, total reserves are £11,065k. Excluding fixed assets of £5,026k, restricted funds of £58k, and endowment of £484k the unrestricted reserves or reserves that are ‘free’ amount to £5,497k, an increase of £172k on last year.

Last year we were anticipating exiting and settling the outstanding liabilities to two Local Authority Pension schemes Norfolk and Surrey. The Norfolk pension was settled in year and the final liability for the Surrey pension was crystalized with our exit from the scheme in August 2022 and settled in April 2023. That liability of £561k is included on the balance sheet at the year end.

The resolution of our pension liabilities means that there is now less risk in the valuation of the liabilities at the year end and the reserves will be focused on delivery of our strategic plans described below.

IiST Annual Report and Accounts 2022/23 Trustees’ Report (continued)

7

Our Future Plans

Strategic Objectives

The organisation’s strategic objectives have remained consistent throughout our strategic review process and continue to best articulate the overriding goals of the new strategic plan, its priorities and developments. These objectives are to continue to meet the children’s needs with and through:

  1. Therapeutic effectiveness ; ensuring that we treat traumatised children safely and effectively through our clinically based residential, education, fostering and support services.

  2. Sustainable service growth ; creating new service capacity and expanding our clinical and management training to develop the next generation of service leaders.

  3. Developing external profile and influence ; develop our external influence and impact for traumatised children through research, conferences and clinical publications.

The organisation has developed a five year strategic plan. The strategic priorities have been categorised into three areas of organisational activity that best describe how the strategic plan has been developed. These areas are articulated as ‘Our People’, ‘Our Services’ and ‘Our Future’. These three strategic areas contain within them five strategic priorities that contain a list of strategies, reviews, projects and business developments.

These strategic priorities are Workforce Development, Quality Improvement, Safeguarding and Compliance, Finance and Central Services and, Business Development. Each one of these priorities is linked to a member of the Executive Team who is the strategic lead for each area. The Chief Executive is overseeing the strategic plan, particularly focusing on how the plan is engaged with internally by everyone within the organisation and communicated externally to all our stakeholders.

The plan is now one year through the five year plan and we are making good progress. The majority of the strategies and projects fall into the area we call ‘Our Services’ which is the focus on quality improvement to achieve a consistent level of quality and compliance throughout the charity and to prepare it for the new business developments identified in the plan.

Risk and Uncertainties

Trustees have assessed the major risks to which the charity is exposed and believe that systems are in place to mitigate our exposure.

Major risks and the actions which are taken to mitigate these risks include:

Statutory Regulation

All of our children’s residential homes and Independent Special School are regulated by Ofsted. The charity employs and Director of Safeguarding and Compliance who works alongside the Responsible Individual and Registered Managers and Head Teacher of each of the services to ensure full compliance with the appropriate regulatory frameworks. Each of the residential homes have a monthly independent inspection to ensure compliance and where any requirements or recommendations are identified by the regulator, Ofsted at inspection a comprehensive action plan is formulated to ensure that all policies, systems and practices are improved immediately. This together with bi-annual ‘quality of care’ reports and an active working relationship with the regulator and each inspector ensure that the risk to our services is minimalised and managed to an acceptable level for the services that the charity provides.

All of our five homes and our school were all Ofsted rated ‘Good’ during the year.

Safeguarding

A safeguarding risk exists wherever children are looked after. We have in place a system to detect and prevent safeguarding issues. This includes specific reports around restraints and regular reporting to trustees. We operate a Safeguarding Committee which reviews all incidents. We ensure all appropriate matters are reported to the Local Authority Designated Officer. Additionally, we use iST to encourage discussion of any concerns. We have an operational whistleblowing policy. We also meet the statutory requirements of Safer Recruitment that apply to children’s homes.

IiST Annual Report and Accounts 2022/23 Trustees’ Report (continued)

8

Risk and Uncertainties (continued)

Recruitment and retention of appropriate skilled staff

We provide all care staff with a UKCP-accredited professional psychotherapeutic training, which is a substantial career benefit, and appears to be having a positive impact on recruitment and retention. We employ clinical specialists in roles which do not require shift-work, for experienced and qualified staff therapeutic staff.

Residential properties continue to meet the needs of the children and young people

Refurbishment and regular maintenance programmes are in place. All our properties are fit for purpose, as therapeutic children’s homes, schools or administrative offices.

Structure, Governance and Management

Governing document

The Institute of Integrated Systemic Therapy is a private charitable company limited by guarantee (a company without share capital). It was incorporated on 22nd March 1983 as the Peper Harow Foundation and registered as a charity on 12th May 1983. It changed its name to Childhood First on 16th July 2008.

To reflect its special status as a training organisation, it changed its name to the Institute of Integrated Systemic Therapy on 28 September 2015. It is governed by memorandum and articles of association which were last amended on 24th November 2004. It continues to trade under the name Childhood First.

The objects of the charity, as laid down in the Memorandum of Association, are to promote and further the care, treatment and rehabilitation of children and adolescents who are psychologically and emotionally disturbed and to promote fuller understanding and knowledge of the causes of psychological and social disturbance and ways in which the causes may be reduced or their consequences ameliorated.

The charity believes it remains compliant with the Charity Governance code.

Recruitment and appointment of Trustees

Trustees are recruited through nomination to the Board by existing Trustees and senior staff. Nominations are discussed by the Board and, if agreed, the nominees are formally invited to join the Board by the Chair. The sensitivity and risks of the work, and our systemic understanding of therapeutic psychodynamics, mean that all Trustees are thought about very carefully before invitation to join the Board. All Trustees are required to retire from office by rotation and are eligible for re-election every three years.

Trustees’ induction and training

On joining, Trustees are given an induction pack and are invited to meet with the Chief Executive and senior staff for a full briefing and discussion about the work of the Charity. They also visit one or more therapeutic communities. Trustees will have been recruited for their skills, knowledge and experience. Training is arranged on an individual basis where additional skills are needed for specific functions.

Organisational structure

The Articles provide for between five and fifteen Trustees; there are currently nine. Each Trustee is expected to add significant value to the beneficiaries. This is normally through their knowledge, expertise, experience or influence, but can include their ability to provide financial or material support, or their network of other people willing to provide such support. The Trustee Board aims to include members with a range of expertise, including clinical and social work, education, child and family law, business, management, fundraising, marketing and campaigning.

The Board of Trustees meet every quarter. During the year, there have been a number of sub-committees which met quarterly, chaired by Trustees but with additional external members with relevant experience.

IiST Annual Report and Accounts 2022/23 Trustees’ Report (continued)

9

Structure, Governance and Management (continued)

Committee Membership

Finance

George Viney (Chair), Sanjay Shah, Sebastian Lyon# Safeguarding

Georgia Chataway (Chair) Sarah Scarratt, Vinod Diwakar School Governance Sarah Scarratt (Chair)

external member

In addition, we have local support groups for fundraising led by Sarah Scarratt (Kent) and Trish Phillips (Norfolk). The Development Board has been set up with the purpose of fundraising for future developments.

All Trustees give their time voluntarily and do not receive any material benefits from the charity. We would like to thank all those involved for the time and expertise they provide to the charity.

Management and core activities

The Board of Trustees is responsible for the strategic direction and policy of the charity. It has delegated the day-to-day running of the organisation to the Senior Leadership Team led by the Chief Executive.

Our core activities are centred on the work of five residential therapeutic communities.

The residential communities provide integrated programmes of care, education and treatment to children and young people of various ages who have experienced severe emotional trauma.

The communities are:

The work includes The Placement and Family Support service which provides therapeutic support for vulnerable children with emotional and behavioural difficulties, together with their families and carers.

The basic operational expenditure is primarily supported by a Local Authorities paying an agreed fee for the children placed at the residential communities. However, such funding is not sufficient to cover the growth and development of the therapeutic work, the facilities required and research and training, which are key to the quality and effectiveness of the therapeutic work. For these, voluntary and grant funding is required.

Remuneration Policy

The remuneration of the staff is set by the Chief Executive in discussion with the Trustees and the remuneration of the Chief Executive is set by the Chair.

IiST Annual Report and Accounts 2022/23 Trustees’ Report (continued)

10

Our Approach to Fundraising

The basic operational expenditure is primarily supported by Local Authorities paying an agreed fee for the children placed at the residential communities. However, such funding is not sufficient to cover all the growth and development of the therapeutic work, the facilities required, and research and training, which are key to the quality and effectiveness of the therapeutic work.

Voluntary and grant funding is, accordingly, essential to the sustainability and development of our work. As noted earlier, we are developing the capacity to fundraise for capital projects, as well as to increase the proportion of funding raised from trust and voluntary sources. These initiatives will strengthen the sustainability of our mission and increase the number of children and families we can support.

Trust and voluntary funding is sought and applied towards specific programmes and activities, such as training and research, and towards capital developments.

Section 162a of the Charities Act 2011 requires charities to make a statement regarding fundraising activities. Although we do not undertake widespread fundraising from the general public, the legislation defines fund raising as “soliciting or otherwise procuring money or other property for charitable purposes.” Such amounts receivable, are presented in our accounts as “voluntary income” and include legacies and grants. In relation to the above we confirm that all solicitations are managed internally, without involvement of commercial participators or professional fund-raisers, or third parties. The day to day management of all income generation is delegated to the executive team, who are accountable to the trustees.

The charity is not bound to adopt any regulatory scheme. However, the charity is a member of the Fundraising Regulator and complies with the relevant codes of practice. We have received no complaints in relation to fundraising activities. Our terms of employment require staff to behave reasonably at all times; as we do not approach individuals for funds we do not have to particularise this to fundraising activities; nor do we consider it necessary to design specific procedures to monitor this.

Public Benefit

We review our aims and objectives regularly, looking both at the planned activities for the coming year and the progress against plans for the previous year. We have referred to the Charity Commission general guidance on public benefit when reviewing our aims and objectives and have considered how our activities meet the needs of our beneficiaries.

At each of our communities, places are open to children and young people from all over the UK, with the Local Authorities meeting the cost of the placement.

Due to the intensive and specialised nature of the work, the comparatively long treatment period for children who have experienced trauma and the size of the residential communities, the number of children and young people who directly benefit from our work each year is relatively small.

Each child, however, represents a major investment of public resources. Without successful treatment, these children are likely to continue to demand substantial resources from social, health and justice systems throughout their lives, to impact adversely the lives of many other children and adults and to pass on similar needs to their own children. Thus the number of people who benefit from our work, directly and indirectly, is substantial.

The opportunity to benefit from our work is open to all those who are eligible, as identified by the appropriate Local Authority and mental health services, and all those whom we assess can benefit from the services. Adolescents who are referred to our services must also personally ask to come and participate in the treatment programme.

As the cost of each placement is met by the Local Authorities, no child or young person is denied the opportunity to benefit on account of their own, or their family’s inability to meet any fees due.

The specialist nature of our service and our unique and successful approach based on four decades of experience, research and clinical development, allows us to influence national policy, service provision and relevant professions more widely on behalf of children and young people who have experienced trauma. This is a further way we believe the charity provides a public benefit.

IiST Annual Report and Accounts 2022/23 Trustees’ Report (continued)

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Statement of Responsibilities of the Trustees

Trustees’ responsibilities

The Trustees (who are also the directors of the charity for the purposes of company law) are responsible for preparing the Trustees’ Report (including the Strategic Report) and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees 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 group and charity and of the incoming resources and application of resources, including the income and expenditure, of the group and charity for that period.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities (Accounts and Reports) Regulations 2008, and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Financial statements are published on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the charity’s website is the responsibility of the trustees. The trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein.

Going concern

The Trustees have considered the matter of going concern and believe that the charity remains a going concern for the following reasons:

doubt upon the Charity and Group’s ability to continue as a going concern.

IiST Annual Report and Accounts 2022/23 Trustees’ Report (continued)

12

Disclosure of Information to Auditors

All of the current Trustees (who are the directors of the company) have taken all the steps that they ought to have taken to make themselves aware of any information needed by the Charitable Company’s auditors for the purpose of their audit and to establish that the auditors are aware of that information. The Trustees are not aware of any relevant audit information of which the auditors are unaware.

BDO LLP have expressed their willingness to continue in office and a resolution to re-appoint them will be proposed at the next annual general meeting.

On behalf of the Board of Trustees

Dr Henrietta Hughes OBE Chair

12 December 2023

IiST Annual Report and Accounts 2022/23 Independent Auditor’s Report

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Independent Auditor’s Report

Opinion on the financial statements

In our opinion, the financial statements:

We have audited the financial statements of Institute of Integrated Systemic Therapy (“the Parent Charitable Company”) and its subsidiaries (“the Group”) for the year ended 31 March 2023 which comprise the consolidated statement of financial activities, the consolidated and company balance sheet, the consolidated cash flow statement 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, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remain independent of the Group and the Parent 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.

Conclusions related to going concern

In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group and the Parent Charitable 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.

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

Other Companies Act 2006 reporting

In our opinion, based on the work undertaken in the course of the audit:

In the light of the knowledge and understanding of the Group and the Parent Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatement in the Strategic report or the Trustees’ 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:

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

IiST Annual Report and Accounts 2022/23 Independent Auditor’s Report (continued)

14

Responsibilities of Trustees

As explained more fully in the Statement of Responsibilities of the Trustees, 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 Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Group’s and the Parent 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 Group or the Parent 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

The Group is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be the Employment Act 2002, Data Protection Act 2018, Bribery Act 2010, and Health and Safety legislation.

Fraud

We have been appointed as auditor under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of noncompliance 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Non-compliance with laws and regulations

Based on our understanding of the Group and the sector in which it operates, discussion with management and those charged with governance and obtaining and understanding of the Group’s policies and procedures regarding compliance with laws and regulations we considered the significant laws and regulations to be the Companies Act 2006, the Charities Act 2011 and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:

Based on our risk assessment, we considered the areas most susceptible to fraud to be management override of controls and income recognition.

Our procedures in respect of the above included:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

IiST Annual Report and Accounts 2022/23 Independent Auditor’s Report (continued)

15

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the Charitable Company’s members, 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 members 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 members as a body, for our audit work, for this report, or for the opinions we have formed.

Fiona Condron (Senior Statutory Auditor) For and on behalf of BDO LLP, Statutory Auditor Gatwick, UK Date: 15 December 2023

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

IiST Annual Report and Accounts 2022/23 Financial Statements

16

Consolidated Statement of Financial Activities for the Year Ended 31 March 2023

Notes
Income and endowments from
Donations and legacies
Charitable activities
Investments
Other
Total income
Expenditure on
Raising funds
Charitable activities
Therapeutic residential care
Fostering
Training
Total expenditure
2
Net income before investment
gains and (losses)
(Loss) / gain on Investments
Net income
Transfers between funds
Actuarial (loss) on defined benefit
scheme
6
Net movement in funds
Total funds brought forward
Total funds carried forward		 2023
Unrestricted
Restricted
Endowment
Total
£
£
£
£
198,552
53,359
-
251,911
9,691,572
-
-
9,691,572
37,190
-
-
37,190
22,733
-
-
22,733
_
_
_
_
9,950,047
53,359
-
10,003,406
_
_
_
_
204,915
-
-
204,915
8,839,908
41,386
-
8,881,294
171,903
-
-
171,903
572,611
-
572,611
_
_
_
_
9,789,337
41,386
-
9,830,723
_
_
_
_
160,710
11,973
-
172,683
(124,212)
-
-
(124,212)
_
_
_
_
36,498
11,973
-
48,471
-
-
-
-
(114,000)
-
-
(114,000)
_
_
_
_
(77,502)
11,973
-
(65,529)
10,600,378
46,294
483,947
11,130,619
_
_
__
____
10,522,876
58,267
483,947
11,065,090



 2022
*As restated
Total
£
178,794
9,371,361
31,959
7,650
_
9,589,764
_
143,200
8,288,570
194,695
409,247
_
9,035,712
_
554,052
192,155
_
746,207
-
(62,000)
_
684,207
10,446,412
____
11,130,619

The Statement of Financial Activities incorporate the income and expenditure account and includes all recognised gains and losses in the current and prior year. Further detail on the 2022 comparatives are shown in Note 18a.

The notes 1 - 19 form part of these financial statements.

IiST Annual Report and Accounts 2022/23 Financial Statements (cont’d)

17

Consolidated and Company Balance Sheet as at 31 March 2023

Group Group Company Company
2022
2023 2022 2023 *As
restated
Notes £ £ £ £
Fixed assets
Tangible assets 7 5,026,684 5,107,383 4,074,505 4,136,338
Investments 8 3,899,981 4,024,193 3,899,981 4,024,193
__ __ __ __
8,926,665 9,131,576 7,974,486 8,160,531
__ __ __ __
Current assets
Debtors 10 467,343 570,960 84,234 118,936
Cash at bank 2,920,360 2,511,620 2,830,883 2,442,174
__ __ __ __
3,387,703 3,082,580 2,915,117 2,561,110
Creditors:
Amounts falling due within one year 11 (1,249,278) (600,537) (5,316,286) (4,045,556)
__ __ __ __
Net current assets/(liabilities) 2,138,425 2,482,043 (2,401,169) (1,484,446)
__ __ __ __
Total assets less current liabilities 11,065,090 11,613,619 5,573,317 6,676,085
Pension liability 12 - (483,000) - (483,000)
__ __ __ __
Net assets 11,065,090 11,130,619 5,573,317 6,193,085
__ __ __ __
The funds of the charity
Income funds
Unrestricted funds
- General reserves 9,720,683 10,281,185 4,724,830 5,344,598
- Pension reserves - (483,000) - -
- Designated funds 14 802,193 802,193 802,193 802,193
__ __ __ __
Total unrestricted funds 10,522,876 10,600,378 5,527,023 6,146,791
Restricted funds 15 58,267 46,294 46,294 46,294
Capital funds
Endowment funds 16 483,947 483,947 - -
__ __ __ __
Total charity funds 11,065,090 11,130,619 5,573,317 6,193,085
__ __ __ __

The financial statements were approved and authorised for issue by the Trustees on 12 December 2023 and were signed on its behalf by

Dr Henrietta Hughes OBE Chair

The notes 1 to 19 form part of these financial statements.

IiST Annual Report and Accounts 2022/23 Financial Statements (cont’d)

18

Consolidated Cash Flow Statement

For the year ended 31 March 2023

Analysis of changes in net debt
2023
Cash
Deposits
Cash
£
£
Balance at 1 April 2022
-
2,511,620
Cash flows
-
408,740
_
_
Balance at 31 March 2023
-
2,920,360
_
_
2023
Notes
£
Cash flow from operating activities
Net (expenditure) / income for the reporting period
(65,529)
Depreciation
170,620
Losses / (gains) on investments
8
124,212
Decrease / (increase) in debtors
10
103,617
Increase / (decrease) in creditors
11
648,742
Actuarial (loss) / gain on defined benefit scheme
13
(483,000)
Net cash generated from operating activities
498,662
Cash flows from investing activities
(Purchase) of property, plant equipment
7
(89,922)
Dividends and interest from investments
-
Purchase of investments
-
Net cash (used in) financing activities
(89,922)
Change in cash in reporting period
408,740
Cash at beginning of year
2,511,620
Cash at end of year
2,920,360		 Analysis of changes in net debt
2023
Cash
Deposits
Cash
£
£
Balance at 1 April 2022
-
2,511,620
Cash flows
-
408,740
_
_
Balance at 31 March 2023
-
2,920,360
_
_
2023
Notes
£
Cash flow from operating activities
Net (expenditure) / income for the reporting period
(65,529)
Depreciation
170,620
Losses / (gains) on investments
8
124,212
Decrease / (increase) in debtors
10
103,617
Increase / (decrease) in creditors
11
648,742
Actuarial (loss) / gain on defined benefit scheme
13
(483,000)
Net cash generated from operating activities
498,662
Cash flows from investing activities
(Purchase) of property, plant equipment
7
(89,922)
Dividends and interest from investments
-
Purchase of investments
-
Net cash (used in) financing activities
(89,922)
Change in cash in reporting period
408,740
Cash at beginning of year
2,511,620
Cash at end of year
2,920,360		 2023
£
(65,529)
170,620
124,212
103,617
648,742
(483,000)
498,662
(89,922)
-
-
(89,922)
408,740
2,511,620
2,920,360		 2022
As*
restated
£**
669,575
162,343
(208,481)
(64,637)
(162,759)
122,000
518,041
(17,795)
14,632
(500,000)
(503,163)
14,878
2,496,742
2,511,620
Cash
Deposits
Cash
£
£
-
2,511,620
-
408,740
_
_
-
2,920,360
_
_		 Total
£
2,511,620
408,740
_
2,920,360
_

The notes 1 to 19 form part of these financial statements.

IiST Annual Report and Accounts 2022/23 Notes to Financial Statements (cont’d)

19

Notes to the Financial Statements

1 Accounting policies

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the consolidated financial statements.

a) Basis of preparation

The Institute of Integrated Systemic Therapy is a charitable company incorporated in England & Wales under the Companies Act 2006. The address of the registered office is given in the Reference and administrative detail page and the nature of the charity’s operations and its aims and objectives are set out in the Trustees report. The financial statements have been prepared under the historic cost convention as modified by the valuation of investments and defined benefit pension schemes in accordance with FRS 102, the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland.

Judgement and key sources of estimation uncertainty

The trustees are satisfied that there are no material judgements and estimates used in the production of the financial statements.

Basis for consolidation

The consolidated accounts include the financial statements of the Institute of Integrated Systemic Therapy and of its subsidiary undertakings, Childhood First (Midlands) Limited, Childhood First (East Anglia) Limited and Childhood First (South) Limited. All of these charitable companies are incorporated in England and Wales. The consolidated accounts also include the results and net assets of Princess Mary’s Trust, of which Institute of Integrated Systemic Therapy is the sole Trustee and which has similar charitable objectives. The Trust can be contacted through Institute of Integrated Systemic Therapy’s registered office.

In accordance with the provisions of the Companies Act 2006 the parent charity is exempt from the requirement to present its own profit and loss account. The total incoming resources from the parent charitable company for the year was £1,709k (2022: £1,727k). The result for the parent charitable company, including unrealised surpluses on investments and an actuarial deficit on the defined benefit pension scheme for the year was a £619k deficit (2022: £568k surplus).

b) Fixed assets and depreciation

From the commencement of 2015-16 depreciation has been charged on the building element of the asset. In addition, the Board of Trustees carries out an impairment review every year. If those reviews show that the book value of a property falls below both its net realisable value and its value in use, then an impairment charge will be recognised to reduce its carrying value to the lower amount.

Fixed assets are stated at cost less depreciation. Items costing less than £1,000 are not capitalised. Depreciation is provided to write off the cost of each asset over its estimated useful economic life by equal annual instalments as follows:

Freehold Buildings 2% Furniture, fittings, tools and equipment 10% - 33% per annum Motor vehicles 25% - 33% per annum

c) Leases

Where assets are financed by leasing agreements that give rights approximating to ownership ('finance leases'), the assets are treated as if they had been purchased outright. The amount capitalised is the present value of the minimum lease payments payable during the lease term. The corresponding leasing commitments are shown as amounts payable to the lessor. Depreciation on the relevant assets is charged to the statement of financial activities.

Lease payments are analysed between capital and interest components so that the interest element of the payment is charged to the statement of financial activities over the period of the lease and represents a constant proportion of the balance of capital repayments outstanding. The capital part reduces the amounts payable to the lessor.

All other leases are treated as operating leases. Their annual rentals are credited to the statements of financial activities on a straight line basis over the term of the lease.

Annual rentals are charged to the statement of financial activities on a straight-line basis over the term of the lease.

d) Income and expenses

Expenses, rental income, investment income, interest receivable and fees are accounted for on an accruals basis. Donations are accounted for when received. Legacies are accounted for when received or if, before receipt, there is sufficient evidence as the probability of the receipt and value of the legacy. Grant income received is deferred to future accounting periods to the extent that the conditions for its receipt have not yet been met. Fee income is recognised in line with the delivery of the related service, with fee income spread evenly over the period of a child’s placement. Payments received in advance of the associated placements are deferred.

IiST Annual Report and Accounts 2022/23 Notes to Financial Statements (cont’d)

20

1 Accounting policies (continued)

g) Funds:

This represents assets donated which must be held as capital and cannot be converted to income.

h) Pension costs

k) Going concern The Trustees have considered the matter of going concern and believe that the charity remains a going concern for the following reasons:

Charity and Group’s ability to continue as a going concern.

IiST Annual Report and Accounts 2022/23 Notes to Financial Statements (cont’d)

21

2 Analysis of total expenditure

Basis of allocation Raising funds Therapeutics
Residential		 Fostering Training 2023
Total		 2022
Total
*As adjusted
£ £ £ £ £ £
Costs directly allocated to activities
Staff costs Direct 85,077 6,031,337 190 346,736 6,463,340 5,998,309
FRS 102 pension adjustment Direct - 47,000 - - 47,000 93,000
Consultancy Direct - 9,156 - 32,607 41,763 8,111
Travel Direct 1,824 182,340 394 20,771 205,329 155,796
Office costs Direct - 245,738 13,774 10,819 270,331 186,666
Marketing Direct 45,610 302 - - 45,912 26,457
Premises Direct - 502,044 22,742 - 524,786 466,232
Household Direct - 104,147 - - 104,147 129,973
Provisions Direct - 140,936 - - 140,936 155,474
Education Direct - 255,217 - - 255,217 325,593
Personal care Direct - 67,597 - - 67,597 72,292
Social activities Direct 75 251,008 - - 251,083 177,225
Other Direct - 41,441 950 103 42,494 62,789
Depreciation Direct - 170,621 - - 170,621 162,343
Finance charges Direct - 971 - - 971 952
Insurance, legal,
professional		 Direct 4,685 186,116 8,719 47,252 246,772 181,459
Audit and accountancy Direct - 50,772 - - 50,772 35,400
Total 137,271 8,286,743 46,769 458,288 8,929,071 8,238,071
Support costs allocated to activities
Premises and office costs Staff
time		 31,119 46,679 15,560 77,798 171,156 128,376
Finance and HR staff Staff
time		 30,385 455,770 91,154 30,385 607,694 527,961
Other Staff
time		 6,140 92,102 18,420 6,140 122,802 141,304
Total 67,644 594,551 125,134 114,323 901,652 797,641
Total resources expended 204,915 8,881,294 171,903 572,611 9,830,723 9,035,712

Further details on comparatives are shown in note 18b.

IiST Annual Report and Accounts 2022/23 Notes to Financial Statements (cont’d)

22

3 Net income

Net income for the year is stated after charging:
Auditor’s remuneration: Group
Depreciation of tangible fixed assets
Rentals payable under operating leases:
Land and buildings
Other
Trustees’ professional indemnity insurance		 2023
£
50,772
170,621
115,425
40,072
2,580
 2022
£
35,400
162,343
150,814
38,014
2,240

4 Staff numbers and costs

The average number of persons employed by the group during the year was 188 (2022: 174). The aggregate payroll costs of these persons were as follows:

Wages and salaries
Social security costs
Other pension costs
FRS 102 pension adjustment		 2023
£
5,821,177
568,634
415,277
-
___
_
6,805,088
 2022
£
5,375,406
454,742
281,941
93,000
__
6,205,089

Total Staff Costs in note 2 include the staff costs in Support Costs which together total £7,071,033 (2022: £6,525,270). These are different from the figures in this note by £265,945 (2022: £321,181) which are recruitment and life assurance costs not included in the table above.

Key management personnel comprise the seven individuals (2022: six). The total employment costs (including employer’s National insurance contributions and pension) of the Senior Leadership Team for the year was £552,081 (2022: £531,746).

The number of employees whose emoluments for the year were greater than £60,000 fell within the following ranges:

2023 2022
£60,001 - £70,000 1 3
£70,001 - £80,000 4 -
£80,001 - £90,000 1 -
£90,001 - £100,000 - 2
£100,001 - £110,000 1 -

Pension payments for the above members of staff amounted to £32,910 (2022: £53,766). The combined remuneration of these staff was £519,171 (2022: £531,747). No payments or remuneration were made to the Trustees during the year. Reimbursement of expenses incurred when travelling to, or engaged upon, the business of the charity amounted to £194 (2022: £601).

5 Related party transactions

The Institute of Integrated Systemic Therapy (registered charity number 286909) is the sole member of Childhood First (Midlands) Limited, Childhood First (East Anglia) Limited and Childhood First (South) Limited. All these are companies limited by guarantee. It is also the sole Trustee of Princess Mary’s Trust.

During the year the following transactions took place between the parent company and its subsidiaries.

Princess Mary’s Childhood First Childhood First Total
Trust (South) (East Anglia)
£ £ £ £
Charge to subsidiary
Management charge - 479,157 340,822 819,979
Institute training - 183,600 108,000 291,600
Rent - 244,600 100,000 344,600
__ ___ ___ ___
Total - 907,357 548,822 1,456,179
__ __ __ __
-
Donations to subsidiary 22,193 31,167 53,359
__ __ __ __
Intercompany balances
As at 31 March 2023
Owed to parent 21,073 - - 21,073
Owed by parent - 676,806 3,919,841 4,596,647
__ __ __ __

IiST Annual Report and Accounts 2022/23 Notes to Financial Statements (cont’d)

23

5 Related party transactions (continued)

At the balance sheet date Princess Mary’s Trust owed £21,073 to the parent charity (2022: £21,073 owed to parent).

Entity information Princess Childhood First Childhood First Childhood First
Mary’s (Midlands) (South) (East Anglia)
Trust
Company number N/A 03187004 03547839 03706394
Charity number 229136 286909 286909 286909

6 Pensions

(a) Surrey Pension Scheme

In August 2022 the departure from employment of the last member of the scheme triggered our planned exit from the Surrey Pension scheme. In April 2023 we were notified of a cessation value of £536k to clear all current and future liabilities to the scheme and that sum was settled in April 2023.

Assets

The market value of the scheme’s assets and their current allocation are:
Equities
Bonds
Property
Cash
Totals
Changes in the fair value of plan assets, defined benefit obligation and
net liability
Reconciliation of Funded liabilities
Opening position
Current service cost
Interest cost
Contributions by members
Benefits paid
Expected closing position
Re-measurements
Changes to financial assumptions
Total re-measurements

Closing position
Reconciliation of fair value of employer assets
Opening position
Interest income
Employer contributions
Contributions by members
Benefits paid
Expected closing position
Total re-measurements
Closing position
Net pension assets and liabilities
Estimated employer assets
Present value of scheme liabilities
Net pension liability (included in other creditors as a current liability)		 2023
£
-
-
-
-
_
-
_
2023
£
-
-
-
-
-
_
-
_
-
_
-
_
-
_
2023

£
-
-
-
-
-
_
-
-
_
-

2023
£
5,539,000
(6,075,000)
_
(536,000)
___		 2022
£
3,682,600
1,496,040
460,320
115,080
_
5,754,040
_
2022
£
6,612,000
41,000
126,000
9,000
(300,000)
_
6,488,000
_
(251,000)
_
(251,000)
_
6,237,000
_
2022
£
6,249,000
120,000
95,000
9,000
(300,000)
_
6,173,000
(419,000)
_
5,754,000

2022
£
5,754,000
(6,237,000)
_
(483,000)
___

IiST Annual Report and Accounts 2022/23 Notes to Financial Statements (cont’d)

24

6
Pensions(continued)
Analysis of amounts credited/(charged) to the statement of financial
activities
Current service costs
Interest cost
Interest income
Net (charge) to statement of financial activities:
Actual Return on assets
Actuarial gains arising on scheme liabilities
Actuarial gains/(losses) charged to the statement of Financial Activities		 2023
£
-
-
-
_
-
_
-
-
___
-
 2022
£
(41,000)
(126,000)
-
_
(167,000)
_
(419,000)
251,000
___
(168,000)

(a) Norfolk County Council Pension Fund

At the start of the year there were no employees in the scheme and no deficit contribution. To complete the planned exit from the scheme a qualified independent actuary quantified the cessation sum at £35k and this was paid in full in July 2022. This compares to the actuarial deficit attributable to the group as at 31[st] March 2022 of £483k.

IiST Annual Report and Accounts 2022/23 Notes to Financial Statements (cont’d)

25

6 Pensions (continued)

Assets - solely Childhood First (East Anglia) Limited

The market value of the scheme’s assets and their current allocation are:

Equities
Bonds
Property
Cash
Totals
Changes in the fair value of plan assets, defined benefit obligation and
net liability: Reconciliation of funded liabilities
Opening position
Current service cost
Interest cost
Contributions by members
Benefits paid
Expected closing position
Re-measurements
Changes to financial assumptions
Other experience
Total re-measurements


Closing position

Reconciliation of fair value of employer assets
Opening position
Interest income
Employer contributions
Contributions by members
Benefits paid
Expected closing position
Return on assets
Total re-measurements
Closing position
Net pension assets and liabilities
Estimated employer assets
Present value of scheme liabilities
Total value of asset
Net pension asset





2023
£
-
-
-
-
__
-
-
-
-
-
_
-
_
-
-
-
_
-
_
-

_
-
-
-
-
-
_
-
_
-
_
-
-


2023
£
-
-

_
-
_
-
_		 2022
£
-
1,455,360
45,480
15,160
1,516,000
_
1,467,000
47,000
30,000
10,000
(36,000)
_
1,518,000
_
(81,000)
(6,000)
4,000
_
(83,000)
_
1,435,000
_
1,469,000
47,000
21,000
10,000
(36,000)
_
1,511,000
_
23,000
_
23,000
1,516,000

2022
£
1,516,000
(1,435,000)
_
81,000
_
81,000
_







_


__

IiST Annual Report and Accounts 2022/23 Notes to Financial Statements (cont’d)

26

6 Pensions (continued)

Analysis of amounts (charged)/credited to the statement of financial
Activities
Current service costs
Interest cost
Interest income
Net (charge) to statement of financial activities:
Actuarial gain arising on scheme liabilities
Actuarial gain charged to the statement of Financial Activities		 2023
£
-
-
-
_
-
_
-
___
-
 2022
£
(47,000)
(30,000)
29,000
_
(48,000)
_
106,000
___
106,000

(c) Combined summary information for Surrey and Norfolk County Council Pension Funds

The table below provides details of the movement in the deficit during the year for both defined benefit pension schemes on a combined basis:

Current service costs
Past service
Interest cost
Interest income
Net (charge) to statement of financial activities (note 2)
Re-measurements
Return on assets

Actuarial liabilities

Actuarial (loss) charged to statement of financial activities
Decrease in liability in the year
(Deficit) in schemes at beginning of the year
(Deficit) in schemes at end of year

_
 2023
£
-
-
-
-
_
-
_
-

-

_
-
_
-
-
___
-


2022
£
(88,000)
-
(156,000)
29,000
_
(215,000)
_
(396,000)
(357,000)
_
(753,000)
_
176,000
(361,000)
____
(185,000)

(d) Teacher’s Pension Scheme

A number of the charitable company’s employees are members of the Teachers’ Pension Scheme (TPS). The TPS is a statutory, contributory defined benefit scheme administered by the Teacher’s Pension Agency, an executive agency of the Department for Education and Employment.

Not less than every four year, with a supporting interim valuation in between, the Government Actuary (GA), using normal actuarial principles, conducts a formal actuarial review of the TSS. The aim of the review is to specify the level of future contributions.

The last valuation of the TPS was as at 31 March 2012. The value of notional assets (estimated future contributions together with the proceeds from the notional investments held at the valuation date) was £176 billion and the scheme had aggregate liabilities of £191 billion, leaving a deficit of £15 billion. The valuation determined the contribution rates on the basis of a fifteen year recovery timeframe for this deficit.

From 2015 the total scheme contribution was determined to be 26% with employee contributions of 9.6% and employer contributions of 16.4%. Of the employer contributions, 10.8% were normal contributions and 5.8% was identified to cover past service deficits.

Total pension costs during the year were £50,803 (2022 - £43,901). There were outstanding contributions of £11,950 due at the end of the financial year (2022 - £5,713).

(e) Group Personal Pension Plan

A Group Personal Pension Plan exists for employees which is a defined contribution scheme.

The pension charge for the year represents contributions payable by the group to the fund and amounted to £268,892 (2022 - £253,931). There were outstanding contributions of £44,122 due at the end of the financial year (2022 - £36,698).

IiST Annual Report and Accounts 2022/23 Notes to Financial Statements (cont’d)

27

7 Tangible fixed assets

Group Freehold
properties		 Furniture and
equipment		 Motor vehicles Total
£ £ £ £
Cost
At 1 April 2022 5,534,579 377,812 210,530 6,122,921
Additions - 18,442 71,479 89,921
Disposals - - (50,405) (50,405)
__ __ __ __
At 31 March 2023 5,534,579 396,254 231,604 6,162,437
__ __ __ __
Depreciation
At 1 April 2022 546,468 282,912 186,158 1,015,538
Charge for year 101,510 39,880 29,230 170,620
Disposals - - (50,405) (50,405)
__ __ __ __
At 31 March 2023 647,978 322,792 164,983 1,135,753
__ __ __ __
Net book value
At 31 March 2023 4,886,601 73,462 66,621 5,026,684
__ __ __ __
At 31 March 2022 4,988,111 94,900 24,372 5,107,383
__ __ __ __
Company Freehold Furniture and Total
properties equipment
£ £ £
Cost
At 1 April 2022 4,507,287 92,910 4,600,197
Additions - - -
__ __ __
At 31 March 2023 4,507,287 92,910 4,600,197
__ __ __
Depreciation
At 1 April 2022 379,191 84,668 463,859
Charge for year 55,579 6,254 61,833
__ __ __
At 31 March 2023 434,770 90,922 525,692
__ __ __
Net book value
At 31 March 2023 4,072,517 1,988 4,074,505
__ __ __
At 31 March 2022 4,128,096 8,242 4,136,338
___ __ __

IiST Annual Report and Accounts 2022/23 Notes to Financial Statements (cont’d)

28

8 Fixed asset investments

a) Group and Company

Balance at 1 April
Additions
Disposals
Loss / (gain) on revaluation
Market value at 31 March		 2023
2022
Cash funds
Investment
funds
Total
Total
£
£
£
£
469,150
3,555,043
4,024,193
3,315,711
-
-
-
516,238
-
-
-
-
34,998
(159,210)
(124,212)
192,154
_
_
_
_
504,148
3,595,833
3,899,981
4,024,193
_
_
_
____

The cash deposits are managed by Cazenove Capital Management Limited and the investment funds are invested in CF Ruffer Total Return Fund, McInroy Balanced Fund and CG Portfolio Funds.

b) Subsidiary undertakings

The principal undertakings which have been included in the consolidated financial statements are as follows:

Subsidiary Country of Proportion of Share capital held Nature of
Undertaking Incorporation voting business
rights
Childhood First (South) Ltd England 100% Limited by
guarantee		 Charity
Childhood First (Midlands) Ltd England 100% Limited by
guarantee		 Charity
Childhood First (East Anglia) Ltd England 100% Limited by
guarantee		 Charity
Princess Mary’s Trust England 100% Trust Charitable Trust

Subsidiary summary results:

Childhood First Childhood First Childhood First Princess Mary’s
(South) Ltd (Midlands) Ltd (East Anglia) Ltd Trust
£ £ £ £
Income 5,009,586 - 4,748,694 -
Expenditure 5,157,940 - 4,039,400 (6,700)
___ ___ ___ ___
Loss / (surplus) for the year (148,354) - 709,294 (6,700)
Reserves brought forward 904,613 - 3,465,896 567,023
___ ___ ____ ___
Reserves carried forward 756,259 - 4,175,190 560,323
___ ___ ____ ___
Net Assets 756,259 - 4,175,190 560,323
___ ___ ____ ___

9 Unapplied total return

At both 1 April 2022 and 31 March 2023 the value of assets representing the unapplied total return was nil. There was no surplus generated during the year.

IiST Annual Report and Accounts 2022/23 Notes to Financial Statements (cont’d)

29

10 Debtors – due within one year
Trade debtors
Amounts owed by group undertakings
Prepayments and accrued income
Other debtors		 Group
2023
£
398,382
-
63,161
5,800
__
467,343
 Group
2022
£
407,789
-
78,371
84,800
__
570,960
 Company
2023
£
-
21,074
63,160
-
__
84,234

11 Creditors: amounts falling due within one year

Group
2023
£
Amounts owed to group undertakings
-
Trade creditors
304,122
Other creditors
645,296
Taxation and social security
141,917
Accruals and deferred income
157,943
__
1,249,278
 Group
Company
Company
2022
2023
2022
£
£
£
-
4,596,648
3,883,709
217,818
55,081
33,181
122,531
575,052
43,294
129,728
34,942
33,130
130,460
54,563
52,242
_
_
__
600,537
5,316,286
4,045,556

Amounts owed to group undertakings are repayable on demand.

12 Pension liability

Pension liability
Group Group Company Company
2023 2022 2023 2022
£ £ £ £
Pension costs
Balance brought forward - 361,000 - 363,000
Increase in FRS102 pension liability during the year
- see note 6(c)		 - 122,000 - 120,000
____ ____ ____ ____
Balance carried forward - 483,000 - 483,000
____ ____ ____ ____

13 Restricted income funds

The Group’s restricted funds consist of the following material funds:

Balance at
1 April
2022		 Income for the year Expenditure for the
year		 Balance at
31 March 2023
£ £ £ £
General projects 46,294 53,359 (41,386) 58,267
___ ____ ___ ___
Total 46,294 53,359 (41,386) 58,267
___ ____ ___ ___

The reserves for other projects are restricted to either the location of the communities and may also be restricted by a particular activity such as a specific building project or service. Comparative information can be found in note 18c.

IiST Annual Report and Accounts 2022/23 Notes to Financial Statements (cont’d)

30

14 Designated funds

Designated funds, within unrestricted funds, represent fixed property assets which are not part of the permanent endowment fund, specifically Earthsea House, Greenfields School and part of Greenfields House.

Balance at 1 April 2022
Balance at 31 March 2023
15 Endowment Funds
Balance at 1 April 2022
Balance at 31 March 2023		 Group
£
802,193
_
802,193
_
Company
£
802,193
_
802,193
_
Group
£
483,947
___
483,947

IIST, as sole Trustee of the Princess Mary’s Trust, holds endowment funds. These funds are represented by property held for the use of the charity. In 2006 the Charity Commission for England and Wales granted an order under section 26 of the Charities Act 1993 enabling IIST to decide which part of the unapplied total return from the assets of the Princess Mary’s Trust given to it should be held on trust for application (income) for the purposes of the Princess Mary’s Trust.

The endowment balance relates to Greenfields House. As the property currently held within the permanent endowment by the Princess Mary’s Trust is held as functional property there is no income being generated by permanent endowment. There is therefore no unapplied total return to be allocated between capital and income.

16 Commitments

Total commitments under non-cancellable operating leases at 31 March 2023 were as follows:

2023 2022
£ £
Equipment leases 76,972 38,014
Property leases 224,100 260,399
______ ______
Total 301,072 298,413
______ ______

Property leases relate to London office (break April 2024), Merrywood House (expires September 2025) and Sittingbourne office (expires May 2028). Total property lease payments recognised as an expense in the year are £115,425 (2022: £150,814) is due within 1 year, £106,800 (2022: £147,600) is due between 2 to 5 years and £1,875 (2022: £nil) is due in more than 5 years.

17 Analysis of net assets between funds

Group
Unrestricted
funds
£
Funds balances at 31stMarch 2023 are represented by:
Tangible fixed assets
4,542,737
Investments
3,899,981
Current assets
3,329,436
Current liabilities
(1,249,278)
___
Total net assets
10,522,876
 Restricted
Permanent
Income
Endowment
Total
funds
fund
Funds
£
£
£
-
483,947
5,026,684
-
-
3,899,981
58,267
-
3,387,703
-
-
(1,249,278)
_
_
___
58,267
483,947
11,065,090

The permanent endowment fund represents some of the assets of Princess Mary’s Trust. See note 18d for comparatives.

IiST Annual Report and Accounts 2022/23 Notes to Financial Statements (cont’d)

31

18 Comparative information relating to 2022

a) Consolidated statement of Financial activities

Notes
Income and endowments from
Donations and legacies
Charitable activities
Investments
Other
Total income
Expenditure on
Raising funds
Charitable activities
Therapeutic residential care
Fostering
Training
Total expenditure
2
Net income before investment gains
Gains on Investments
Net income
Transfers between funds
Actuarial gains on defined benefit schemes
6
Net movement in funds
Total funds brought forward
Total funds carried forward		 2022
Unrestricted
Restricted
Endowment
Total
£
£
£
£
104,161
74,633
-
178,794
9,371,361
-
-
9,371,361
31,959
-
-
31,959
7,650
-
-
7,650
_
_
_
_
9,515,131
74,633
-
9,589,764
_
_
_
_
143,200
-
-
143,200
8,244,467
44,103
-
8,288,570
194,695
-
-
194,695
409,247
-
409,247
_
_
_
_
8,991,609
44,103
-
9,035,712
_
_
_
_
523,522
30,530
-
554,082
192,155
-
-
192,155
_
_
_
_
715,677
30,530
-
746,207
471,200
(471,200)
-
-
(62,000)
-
-
(62,000)
_
_
_
_
1,124,877
(440,670)
-
684,207
9,475,501
486,964
483,947
10,446,412
_
_
__
____
10,600,378
46,294
483,947
11,130,619

IiST Annual Report and Accounts 2022/23 Notes to Financial Statements (cont’d)

32

18 Comparative information relating to 2022 (continued)

b) Analysis of total expenditure

Basis of allocation Raising funds Therapeutics
Residential		 care Fostering Training 2022
Total
As*
Adjusted**		 2021
Total
£ £ £ £ £ £
Costs directly allocated to activities
Staff costs Direct 48,676 5,613,621 38,434 297,579 5,998,310 5,881,222
FRS 102 pension
adjustment		 Direct - 93,000 - - 93,000 122,000
Consultancy Direct - 8,111 - - 8,111 58,383
Travel Direct 934 145,774 1,151 7,937 155,796 109,030
Office costs Direct - 175,850 114 10,702 186,666 243,405
Marketing Direct 26,457 - - - 26,457 (1,435)
Premises Direct - 442,634 23,598 - 466,232 353,260
Household Direct - 129,973 - - 129,973 119,510
Provisions Direct - 155,474 - - 155,474 147,825
Education Direct - 325,593 - - 325,593 310,266
Personal care Direct - 72,292 - - 72,292 70,020
Social activities Direct - 177,225 - - 177,225 128,032
Other Direct - 40,458 5,556 16,774 62,789 86,050
Depreciation Direct - 162,343 - - 162,343 174,243
Finance charges Direct - 952 - - 952 653
Insurance, legal,
professional		 Direct 5,142 165,128 11,189 - 181,459 155,175
Audit and accountancy Direct - 35,400 - - 35,400 23,871
Total 81,209 7,743,828 80,042 332,992 8,238,071 7,981,510
Support costs allocated to activities
Premises and office costs Staff
time		 28,528 42,792 14,264 42,792 128,376 88,634
Finance and HR staff Staff
time		 26,398 395,971 79,194 26,398 527,961 490,283
Other Staff
time		 7,065 105,979 21,195 7,065 141,304 118,785
Total 61,991 544,742 114,653 76,255 797,641 697,702
Total expenditure 143,200 8,288,570 194,695 409,247 9,035,712 8,679,212

IiST Annual Report and Accounts 2022/23 Notes to Financial Statements (cont’d)

33

18 Comparative information relating to 2022 (continued)

c) Restricted funds

Balance at Income for the Expenditure for Transfer to Balance at
1 April year the year Unrestricted 31 March
2021 2022
£ £ £ £ £
Other projects 486,964 74,633 (44,103) (471,200) 46,294
___ ____ ___ ___ ___
Total 486,964 74,633 (44,103) (471,200) 46,294
___ ____ ___ ___ ___

d) Analysis of assets between funds

Group
Unrestricted
funds
£
Fund balances at 31 March 2022 are represented by:
Tangible fixed assets
4,623,436
Investments
4,024,193
Current assets
3,036,286
Current liabilities
(600,537)
Pension liability
(483,000)
___
Total net assets
10,600,378
 Restricted
Permanent
Income
Endowment
Total
funds
fund
Funds
£
£
£
-
483,947
5,107,383
-
-
4,024,193
46,294
-
3,082,580
-
-
(600,537)
-
-
(483,000)
_
_
___
46,294
483,947
11,130,619

19 Prior period adjustment

In preparing the financial statement for the year ended 31 March 2023, it was noted that two adjustments, relating to the actuarial loss on the pension scheme, and transfer between funds, were not appropriately treated in the prior year. This note elucidates the nature of these adjustments, their impact on the prior period financial statements, and the subsequent modifications made to achieve correct the comparative numbers.

Previously
Reported Adjustment Restated
2022 2022 2022
£ £ £
Group
Consolidated statement of financial activities
Actuarial loss on defined benefit pension scheme (230,000) 168,000 (62,000)
Consolidated cash flow statement
Actuarial loss on defined benefit scheme 290,000 (168,000) 122,000
Net (expenditure) / income for the reporting period 501,575 168,000 669,575
Company
Company balance sheet
Unrestricted funds - General reserves 4,873,400 471,200 5,344,600
Restricted funds 517,494 (471,200) 46,294

The table above contains the prior period adjustments to the actuarial loss on the defined benefit pension scheme, as shown in the consolidated accounts which was overstated by £168,000.

In addition, the company unrestricted reserves of £4,873,400 were understated by £471,200 as there were unrestricted reserves incorrectly classified as restricted reserves.

IIST Annual Report and Accounts 2022/23

34

Reference and Administrative Detail

Charity name:

Trading name : Charity registration number:

Company registration number:

Registered office and Operational address:

Institute of Integrated Systemic Therapy

Childhood First 286909 01708301

210 Borough High Street, London SE1 1JX

Board of Trustees:

The Trustees (directors of the company) during the year (and since the year-end) were:

Dr Henrietta Hughes OBE (Chair) Mr Jeremy Brier Ms Georgia Chataway Dr Vinod Diwakar Mr Matthew Fletcher – resigned 23 September 2023 Mr John Harrison – resigned 13 June 2023 Mr Scott Murdoch – resigned 20 September 2023 Mrs Patricia Phillips Mrs Sarah Scarratt Mr Sanjay Shah Mr Robert Shipton – resigned 1 April 2023 Mr George Viney

Chief Executive

Gary Yexley

Company Secretary

Michael Joseph

Senior Leadership Team

Gary Yexley (Chief Executive) Michael Joseph (Finance & Corporate Services Director) Lace Jackson (Clinical Director) Dan Lansley (Business Development Director) Robyn Bartram (Residential Services Director) Laura Park (Safeguarding and Compliance Director) – resigned 4 August 2023

The senior leadership team were all in post at 12 December 2023 except as detailed above

Auditors

BDO LLP, 2 City Place, Beehive Ring Road, Gatwick, West Sussex, RH6 0PA

Principal Bankers

Coutts & Co, 440 Strand, London WC2R 0QS.