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2024-03-31-accounts

Annual Report and Accounts

For the year ended 31 March 2024

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 4
Our Future Plans 5
Risk and Uncertainties 6
Structure, Governance and Management 6
Our Approach to Fundraising 8
Public Benefit 8
Statement of Responsibilities of the Trustees 9
Going Concern 10
Disclosure of Information to the Auditors 10
Independent Auditor’s Report 11
Financial Statements
Consolidated Statement of Financial Activities 14
Consolidated and Company Balance Sheets 15
Consolidated Cash Flow Statement 16
Notes to the financial statements 17
Reference and Administrative Details 28

IiST Annual Report and Accounts 2023/24

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 Approach

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.

Our Values

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.

Over the last 25 years, the charity has developed to consist of five therapeutic communities and a special school. These therapeutic environments have continued to develop their services in line with modern day challenges and needs and remain at the forefront of caring for, educating and clinically treating some of the countries most traumatised children and young people.

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 2023/24

2

Chair’s Introduction

Welcome to our 2023/24 annual report. This year we have made huge strides forward in equipping the charity with the systems, developments and processes required to continue to meet the needs of our children and young people, and our staff that work so tirelessly to care, educate and treat them each and every single day.

In line with the Charity Commission’s ‘Principles of Best Practice’, the Trustee Board undertook a full and comprehensive review of its Trustee governance processes. A wide range of recommendations were adopted by the Board, which also included a review of the skills required by the charity at Board level. A comprehensive action plan was developed covering areas from how to improve the recruitment, induction and performance of Trustees, the appointment of two new Vice-Chair roles and the role of Patrons.

The executive team, led by Gary Yexley the Chief Executive has continued to ensure that the day to day care of the children and young people is safe and meets their complex emotional, educational and social needs. The training team has continued to deliver the high class clinical training to the staff, and over the next year more of the quality improvements identified as required in the Charity’s five-year plan will be realised.

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’. As we look forward to the coming year, we will continue to implement our five year Charity Plan to ensure that we treat children safely and effectively. We would like to express our immense gratitude to all of our generous benefactors, with special thanks to:

Blacksheep Cricket Club Cheruby Trust Elizabeth Tompkins Ian Mess Masonic Charitable Foundation T L Dallas & Co Tanya Scott-Adie The Annie Tranmer Chartitable Trust The Austin & Hope Pilkington Charitable Trust The Barratt Family Charitable Trust The Carrington Charitable Trust The Colyer Ferguson Charitable Trust The D’Oyly Carte Charitable Trust The Dyer’s Company Charitable Trust The Elizabeth & Prince Zaiger Charitable Trust The Geoffrey Watling Charity The HASH Foundation The Inverforth Charitable Trust The Joseph & Lena Randall Charitable Trust The Kent Community Foundation The Lyon Family Charitable Trust The Paget Charitable Trust The Percy Bilton Charity The Simon Gibson Charitable Trust The Whitehead Monckton Charitable Foundation Troy Asset Management

Dr Henrietta Hughes OBE Chair of Trustees

IiST Annual Report and Accounts 2023/24 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 2024/25

Our five-year strategy provides a clear roadmap for the charity and focuses 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.

What we achieved in 2023/24

Our People

We have continued to make significant progress within the strategic areas described above. In relation to meeting our objectives to develop our workforce, we undertook a detailed analysis of the market which showed that although we ask a lot of our staff in terms of dedication and commitment to the task of caring for traumatised children and young people, we also provide reward within the top 10% of providers and a clinical training pathway career progression that is unrivalled within the social care sector. We also undertook a process to reduce the number of overnight ‘sleeping in’ duties for staff so they work fewer hours.

We have started to review our HR systems to simplify and improve our on boarding processes for new staff which will also allow staff in the future to access their own records and make the administration of HR easier. We have established full fibre connection in all our therapeutic homes and updated our IT equipment so that they are secure to use. We have obtained Cyber Essentials certification including multi-factor authentication.

Our Services

All of our therapeutic residential services have all achieved ‘Good’ ratings from the Social Care Inspectorate, OFSTED, including areas in which our Leadership and Management was rated as ‘Outstanding’. We have invested and improved our 1:1 individual therapy service, ensuring that each child and young person within their therapeutic home has state of the art therapy spaces in which they can explore their feelings in a safe space with a qualified Child Therapist.

Following a successful pilot, we have rolled out into each homes, a new Case Recording System. This system ensures that all our documents are safe and secure and compliant with GDPR and record keeping good practice. We undertook a review of our organizational design of the Senior Management Roles within our homes to ensure that all teams and roles are aligned in the same way throughout the organization to help achieve our objectives.

Our Future

We continue to lay the important foundations to meet our future aspirations in developing our services to reach more children who require specialist therapeutic services. To achieve this we continue to improve the structures, systems, standards and regulatory requirements to ensure a consistent approach and application of our service.

Our fostering strategy has continued to be developed and we have presented this to a number of foster agencies and increased the number of residential services interested in developing our unique approach to ensuring that children and young people who transition to and from residential care are consistently assessed, cared for and communicated with and about between all agencies to ensure an integrated approach to their transition.

IiST Annual Report and Accounts 2023/24 Trustees’ Report (continued)

4

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 Princess Mary’s Trust. Dormant subsidiary Childhood First (Midlands), a closed entity, which was dissolved on 30[th] January 2024.

Income summary

East Anglia
South
Residential
Other income incl. fundraising, investments etc.
Total		 2023/24
2022/23
Change
£'000
£'000
£'000
5,162
4,749
413
5,485
5,010
475
10,647
9,759
888
251
244
7
10,898
10,003
895

Average placements increased from 31.4 to 33.4 which together with price rises on new placements, generated additional income of £888k over last year. The spread of change was consistent across the regions with our occupancy rate increasing from 76.5% to 83.5%.

Net surplus / (deficit)

East Anglia
South
Residential
Other incl. fundraising, investments etc.
Total income		 2023/24
2023/23
Change
£'000
£'000
£'000
1,597
709
888
980
(148)
1,128
2,577
561
2,016
(1,669)
(626)
(1,043)
908
(65)
973

The increase in surplus has been almost wholly driven by the increase in income. There is 1% reduction in costs which is a mixture of wage inflation, mitigated by a small reduction in staff numbers and some small cost savings in other areas.

Fixed assets

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

Debtors and Creditors

Trade debtors reduced by £73k (16%). Trade creditors reduced by £116k (38%) and represent around two weeks of purchases. Other creditors have reduced following our exit from of the Local Government Pension Scheme.

Cash position

The cash position has reduced significantly with the charity making use of cash holdings in longer term money market deposits.

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 is be invested in managed funds under the following guidelines:

IiST Annual Report and Accounts 2023/24 Trustees’ Report (continued)

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Financial Review and the Results for the Year (continued)

Investments

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 value of these investments at the year-end was £5,814k which included an unrealized deficit of £86k compared to an unrealized deficit in 2023 of £124k. These were disappointing results but trustees consider them reasonable in challenging investment markets.

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.

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 a five year strategic plan with the strategic priorities 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 two years 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.

IiST Annual Report and Accounts 2023/24 Trustees’ Report (continued)

6

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 a Safeguarding and Compliance lead 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.

Cyber Security and GDPR

This year we have achieved Cyber Essentials certification and multi-factor authentication across our services. This is supported by a new IT infrastructure built on real time vulnerability testing and a three tier business continuity plan. We have a policy of continual improvement and training to meet the ever changing cyber threat and we are engaged in a programme of continual improvement in relation to GDPR compliance.

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.

IiST Annual Report and Accounts 2023/24 Trustees’ Report (continued)

7

Structure, Governance and Management (continued)

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.

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:

IiST Annual Report and Accounts 2023/24 Trustees’ Report (continued)

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Structure, Governance and Management (continued)

Management and core activities

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.

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.

IiST Annual Report and Accounts 2023/24 Trustees’ Report (continued)

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Public benefit (continued)

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.

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.

IiST Annual Report and Accounts 2023/24 Trustees’ Report (continued)

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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 for at least a period of twelve months from the date of signing.

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.

On 19 November 2024 the company’s auditor changed its name from haysmacintyre LLP to HaysMac LLP. A resolution to re-appoint HaysMac LLP as auditors will be proposed at the next annual general meeting.

The Trustees’ Report (including the Strategic Report) was approved by the Trustees and signed on their behalf by:

Dr Henrietta Hughes OBE Chair of trustees

10 December 2024

IiST Annual Report and Accounts 2023/24 Independent Auditor’s Report

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF THE INSTITUTE OF INTEGRATED SYSTEMIC THERAPY

Opinion

We have audited the financial statements of The Institute of Integrated Systemic Therapy for the year ended 31 March 2024 which comprise the Consolidated Statement of Financial Activities, the group and parent charitable company’s Balance Sheets, 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).

In our opinion, the financial statements:

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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ 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.

In connection with our audit of the financial statements, 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:

IiST Annual Report and Accounts 2023/24 Independent Auditor’s Report

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Matters on which we are required to report by exception

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 misstatements in the Trustees’ Annual Report (which incorporates the strategic report and 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:

Responsibilities of trustees for the financial statements

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 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

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.

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

Based on our understanding of the group and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations, and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011, Charities SORP (FRS102), Companies Act 2006 and payroll taxes.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and the recognition of income. Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a 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 involves intentional concealment, forgery, collusion, omission or misrepresentation

IiST Annual Report and Accounts 2023/24 Independent Auditor’s Report

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A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: 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.

Steven Harper (Senior Statutory Auditor)

10 Queen Street Place

For and on behalf of HaysMac LLP, Statutory Auditors London EC4R 1AG

Date

IiST Annual Report and Accounts 2023/24 Financial Statements

14

Consolidated Statement of Financial Activities for the Year Ended 31 March 2024

Notes
Income
Donations and legacies
Charitable activities
Investments
Other
Total income
Expenditure
Raising funds
Charitable activities
Therapeutic residential care
Training
Fostering
Total expenditure
2
Net income before investment
gains and (losses)
(Loss) / gain on Investments
Net income / (expenditure)
Actuarial (loss) on defined benefit
scheme
6
Net movement in funds
Total funds brought forward
Total funds carried forward		 2024
Unrestricted
Restricted
Endowm’t
Total
£
£
£
£
108,270
160,707
-
268,977
10,476,359
-
-
10,476,359
119,203
-
-
119,203
10,694
-
-
10,694
_
_
_
_
10,714,526
160,707
-
10,875,233
_
_
_
_
147,239
-
-
147,239
8,710,609
195,444
-
8,905,973
828,211
-
828,211
-
-
-
-
_
_
_
_
9,685,979
195,444
-
9,881,423
_
_
_
_
1,028,547
(34,737)
-
993,810
(85,649)
-
-
(85,649)
_
_
_
_
942,898
(34,737)
-
908,161
-
-
-
-
_
_
_
_
942,898
(34,737)
-
908,161
10,522,875
58,267
483,947
11,065,090
_
_
__
____
11,465,772
23,530
483,947
11,973,251

 2023
Total
£
251,911
9,691,572
37,190
22,733
_
10,003,406
_
204,915
8,881,294
572,611
171,903
_
9,830,723
_
172,683
(124,212)
_
48,471
(114,000)
_
(65,529)
11,130,619
____
11,065,090

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 2023 comparatives are shown in Note 17a.

The notes 1 to 16 form part of these financial statements.

IiST Annual Report and Accounts 2023/24 Financial Statements (cont’d)

15

Consolidated and Company Balance Sheet as at 31 March 2024 Company number 01708301

Group Group Company Company
2024 2023 2024 2023
Notes £ £ £ £
Fixed assets
Tangible assets 7 4,881,187 5,026,684 4,016,366 4,074,505
Investments 8 5,814,332 3,899,981 5,814,332 3,899,981
__ __ __ __
10,695,519 8,926,665 9,830,698 7,974,486
__ __ __ __
Current assets
Debtors 9 393,861 467,343 86,151 84,234
Cash at bank 1,502,234 2,920,360 1,414,675 2,830, 883
__ __ __ __
1,896,095 3,387,703 1,500,826 2,915,117
Creditors
Amounts falling due within one year 10 (618,363) (1,249,278) (7,420,839) (5,316,286)
__ __ __ __
Net current assets/(liabilities) 1,277,732 2,138,425 (5,920,013) (2,401,169)
__ __ __ __
Total assets less current liabilities 11,973,251 11,065,090 3,910,685 5,573,317
__ __ __ __
Net assets 11,973,251 11,065,090 3,910,685 5,573,317
__ __ __ __
The funds of the charity
Income funds
Unrestricted funds
- General reserves 10,663,581 9,720,683 3,108,492 4,724,830
- Designated funds 11 802,193 802,193 802,193 802,193
__ __ __ __
Total unrestricted funds 11,465,774 10,522,876 3,910,685 5,527,023
Restricted funds 12 23,530 58,267 - 46,294
Capital funds
Endowment funds 13 483,947 483,947 - -
__ __ __ __
Total charity funds 15 11,973,251 11,065,090 3,910,685 5,573,317
__ __ __ __

The financial statements were approved and authorised for issue by the Trustees on 10 December 2024 and were signed on its behalf by

Dr Henrietta Hughes OBE Chair

The notes 1 to 16 form part of these financial statements.

The deficit for the Institute of Integrated Systemic Therapy was (£1,616,338) (2023: deficit (£619,769)

IiST Annual Report and Accounts 2023/24 Financial Statements (cont’d)

16

Consolidated Cash Flow Statement

For the year ended 31 March 2024

Analysis of changes in net debt
2024
Cash
Deposits
Cash
Total
£
£
£
Balance at 1 April 2023
-
2,920,360
2,920,360
Cash flows
-
(1,418,126)
(1,1418,126)
_
_
__
Balance at 31 March 2024
-
1,502,234
1,502,234
_
_
__
2024
2023
Notes
£
£
Cash flow from operating activities
Net income / (expenditure) for the reporting period
910,674
(65,529)
Depreciation
177,875
170,620
Losses on investments
8
85,649
124,212
Loss on fixed assets
1,552
-
Decrease / (increase) in debtors
10
73,482
103,617
(Decrease) / increase in creditors
11
(633,429)
648,742
Actuarial (loss) on defined benefit scheme
13
-
(483,000)
Net cash generated from operating activities
615,804
498,662
Cash flows from investing activities
(Purchase) of property, plant equipment
7
(33,930)
(89,922)
Purchase of investments
(2,000,000)
-
Net cash (used in) financing activities
(2,033,930)
(89,922)
Change in cash in reporting period
(1,418,126)
408,740
Cash at beginning of year
2,920,360
2,511,620
Cash at end of year
1,502,234
2,920,360		 Analysis of changes in net debt
2024
Cash
Deposits
Cash
Total
£
£
£
Balance at 1 April 2023
-
2,920,360
2,920,360
Cash flows
-
(1,418,126)
(1,1418,126)
_
_
__
Balance at 31 March 2024
-
1,502,234
1,502,234
_
_
__
2024
2023
Notes
£
£
Cash flow from operating activities
Net income / (expenditure) for the reporting period
910,674
(65,529)
Depreciation
177,875
170,620
Losses on investments
8
85,649
124,212
Loss on fixed assets
1,552
-
Decrease / (increase) in debtors
10
73,482
103,617
(Decrease) / increase in creditors
11
(633,429)
648,742
Actuarial (loss) on defined benefit scheme
13
-
(483,000)
Net cash generated from operating activities
615,804
498,662
Cash flows from investing activities
(Purchase) of property, plant equipment
7
(33,930)
(89,922)
Purchase of investments
(2,000,000)
-
Net cash (used in) financing activities
(2,033,930)
(89,922)
Change in cash in reporting period
(1,418,126)
408,740
Cash at beginning of year
2,920,360
2,511,620
Cash at end of year
1,502,234
2,920,360		 2024
£
910,674
177,875
85,649
1,552
73,482
(633,429)
-
615,804
(33,930)
(2,000,000)
(2,033,930)
(1,418,126)
2,920,360
1,502,234		 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
Cash
Deposits
Cash
Total
£
£
£
-
2,920,360
2,920,360
-
(1,418,126)
(1,1418,126)
_
_
__
-
1,502,234
1,502,234
_
_
__

The notes 1 to 16 form part of these financial statements.

IiST Annual Report and Accounts 2023/24 Notes to Financial Statements (cont’d)

17

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

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 (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. Dormant subsidiary Childhood First (Midlands), a closed entity, which was dissolved on 30th January 2024.

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 (2023: £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 (2023: £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 or receipt is probable. 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.

e) Allocation of expenses:

IiST Annual Report and Accounts 2023/24 Notes to Financial Statements (cont’d)

18

1 Accounting policies (continued)

g) Funds:

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

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

IiST Annual Report and Accounts 2023/24 Notes to Financial Statements (cont’d)

19

2 Analysis of total expenditure

Basis of allocation Therapeutics
Residential		 care Training Fundraising 2024
Total		 2023
Total
£ £ £ £ £
Costs directly allocated to activities
Staff costs Direct 5,915,545 535,189 - 6,450,734 6,197,394
Other staff costs Direct 372,761 372,761 265,946
FRS 102 pension adjustment Direct - - - - 47,000
Consultancy Direct 6,094 10,054 - 16,148 41,763
Travel Direct 132,565 27,867 1,250 161,682 205,329
Office costs Direct 32,202 1,399 3,416 37,017 270,331
Marketing Direct - - 11,938 11,938 45,912
Premises Direct 326,458 - - 326,458 524,786
Household Direct 91,499 - - 91,499 104,147
Provisions Direct 176,585 - - 176,585 140,936
Education Direct 193,712 - - 193,712 255,217
Personal care Direct 82,074 - - 82,074 67,597
Social activities Direct 270,392 - 12,103 282,495 251,083
Other Direct 43,439 26,571 - 70,010 42,494
Depreciation Direct 177,875 - - 177,875 170,621
Finance charges Direct 970 - - 970 971
Legal & professional Direct 35,002 3,346 - 38,348 246,772
Audit and accountancy Direct 37,200 - - 37,200 50,772
Total 7,894,373 604,426 28,707 8,527,506 8,929,071
Premises and office costs Staff
time		 105,252 175,420 70,168 350,840 171,156
Finance and HR staff Staff
time		 487,510 27,084 27,084 541,678 607,694
Other Staff
time		 418,919 21,240 21,240 461,399 122,802
Total 1,011,681 223,744 118,492 1,353,917 901,652
Total expenditure 8,906,054 828,170 147,199 9,881,423 9,830,723

Insurance costs have been allocated to Other costs in 2024 having been shown previously in Legal and Professional fees.

Further details on comparatives are shown in note 16b.

IiST Annual Report and Accounts 2023/24 Notes to Financial Statements (cont’d)

20

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		 2024
£
37,200
177,875
165,675
29,558
2,580
 2023
£
50,772
170,621
115,425
40,072
2,580

4 Staff numbers and costs

The average number of persons employed by the group during the year was 186 (2023: 188). The aggregate payroll costs of these persons were as follows:

Wages and salaries
Social security costs
Other pension costs		 2024
£
6,102,086
583,911
306,415
___
_
6,992,412
 2023
£
5,821,177
568,634
415,277
__
6,805,088

Total Staff Costs in note 2 include the staff costs in Support Costs which together total £7,365,173 (2023: £7,071,033). These are different from the figures in this note by £372,761 (2023: £265,945) which are recruitment and life assurance costs not included in the table above.

Key management personnel comprise the seven individuals (2023: seven). The total employment costs (including employer’s National insurance contributions and pension) of the Senior Leadership Team for the year was £522,820 (2023: £552,081).

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

2024 2023
£60,001 - £70,000 2 1
£70,001 - £80,000 3 4
£80,001 - £90,000 1 1
£90,001 - £100,000 - -
£100,001 - £110,000 - 1
£110,001 - £120,000 1 -

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 £306 (2023: £194).

5 Related party transactions

The Institute of Integrated Systemic Therapy (registered charity number 286909) is the sole member of 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. Dormant subsidiary Childhood First (Midlands), is a closed entity and was dissolved on 30th January 2024.

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
__ __ __ __
Intercompany balances
As at 31 March 2024
Owed to parent 21,073 - - 21,073
Owed by parent - 1,651,492 5,600,036 7,251,527
__ __ __ __

IiST Annual Report and Accounts 2023/24 Notes to Financial Statements (cont’d)

5 Related party transactions (continued)

At the balance sheet date Princess Mary’s Trust owed £21,073 to the parent charity (2023: £21,073 owed to parent). No other transactions have taken place during the year.

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

6 Pensions

(a) 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.

Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits an many other factors. The last valuation of the TPS was as at 31 March 2020. The valuation report was published by the Department of Education on October 2023, with the SCAPE rate, sent by HMT, applying a notional investment return based on 1.7% above the rate of CPI. The value of notional assets (estimated future contributions together with the proceeds from the notional investments held at the valuation date) was £222 billion and the scheme had aggregate liabilities of £262 billion, leaving a notional past service deficit of £39.8 billion.

The Employers scheme contribution is set at 28.68% of pensionable pay (including a 0.08% administration levy). This is an increase of 5% in employer contributions and the cost control result is such that no change in member benefits is needed.

Total pension costs during the year were £42,256 (2023 - £49,660). There were outstanding contributions of £5,632 due at the end of the financial year (2023 - £11,950).

Under the definitions set out in FRS 1012, the TPS is an unfunded multi-employer pension scheme. The Group is unable to identify its share of the underlying assets and liabilities of the plan. Accordingly, the Group has taken advantage of the exemption of FRS102 and has accounted for its contributions to the scheme as if it were a defined contribution scheme.

(b) 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 £263,810 (2023 - £268,892). There were outstanding contributions of £44,028 due at the end of the financial year (2023 - £44,122).

The charity used to participate in a defined benefit scheme which was exited last year and the closing liability was settled.

7 Tangible fixed assets

Group Freehold
properties		 Furniture and
equipment		 Motor vehicles Total
£ £ £ £
Cost
At 1 April 2023 5,534,579 396,254 231,604 6,162,436
Additions - - 33,930 33,930
Disposals - - (110,215) (110,215)
__ __ __ __
At 31 March 2024 5,534,579 396,254 155,319 6,086,151
__ __ __ __
Depreciation
At 1 April 2023 647,977 322,792 164,984 1,135,753
Charge for year 102,080 35,392 40,403 177,875
Disposals - - (108,663) (108,663)
__ __ __ __
At 31 March 2024 750,057 358,184 96,724 1,104,965
__ __ __ __
Net book value
At 31 March 2024 4,784,522 38,070 58,595 4,881,187
__ __ __ __
At 31 March 2023 4,886,601 73,462 66,621 5,026,684
__ __ __ __

IiST Annual Report and Accounts 2023/24 Notes to Financial Statements (cont’d)

22

7 Tangible fixed assets (continued)

Company Freehold Furniture and Total
properties equipment
£ £ £
Cost
At 1 April 2023 4,507,287 92,910 4,600,197
Additions - - -
__ __ __
At 31 March 2024 4,507,287 92,910 4,600,197
__ __ __
Depreciation
At 1 April 2023 434,722 90,921 525,693
Charge for year 56,150 1,990 58,140
__ __ __
At 31 March 2024 490,922 92,910 583,833
__ __ __
Net book value
At 31 March 2024 4,016,366 - 4,016,366
__ __ __
At 31 March 2023 4,072,517 1,988 4,074,505
___ __ __

8 Fixed asset investments

a) Group and Company

Balance at 1 April
Additions
Disposals
Gain / (Loss) on revaluation
Market value at 31 March		 2024
2023
Cash funds
Investment
funds
Total
Total
£
£
£
£
504,148
3,395,833
3,899,981
4,024,193
2,000,000
-
2,000,000
-
-
-
-
-
51,069
(136,718)
(85,649)
(124,212)
_
_
_
_
2,555,217
3,259,115
5,814,332
3,899,981
_
_
_
_

The cash deposits are managed by Coutts and 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 (East Anglia) Ltd England 100% Limited by
guarantee		 Charity
Princess Mary’s Trust England 100% Trust Charitable Trust

IiST Annual Report and Accounts 2023/24 Notes to Financial Statements (cont’d)

23

8 Fixed asset investments (continued)

Subsidiary summary results
Childhood First
(South) Ltd
£
Income
5,485,589
Expenditure
4,505,381
_

Surplus / (loss) for the year
980,208
Reserves brought forward
765,425
_

Reserves carried forward
1,745,633
_

Net Assets
1,745,633
_


Debtors – due within one year
Group
2024
£
Trade debtors
322,985
Amounts owed by group undertakings
-
Prepayments and accrued income
65,077
Other debtors
5,800
_
393,861
_
0 Creditors: amounts falling due within one year
Group
2024
£
Amounts owed to group undertakings
-
Trade creditors
187,213
Other creditors
108,395
Taxation and social security
151,048
Accruals
171,707
__
618,363		 Childhood First
Princess Mary’s
(East Anglia) Ltd
Trust
£
£
5,161,956
-
3,564,671
(6,700)
_
___
1,597,285
(6,700)
4,175,190
560,023
_
_
5,772,475
553,623
_
______
5,772,475
553,623
_
___
Group
Company
Company
2023
2024
2023
£
£
£
398,382
-
-
-
21,074
21,074
63,161
65,077
63,160
5,800
-
-
_
_
_
467,343
86,151
84,234
_
_
_
Group
Company
Company
2023
2024
2023
£
£
£
-
7,251,528
4,596,648
304,122
57,113
55,081
645,296
18,441
575,052
141,917
48,541
34,942
157,943
45,216
54,563
_
_
_
1,249,278
7,420,839
5,316,286

9 Debtors – due within one year

10 Creditors: amounts falling due within one year

Amounts owed to group undertakings are repayable on demand.

11 Restricted income funds

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

Balance at
1 April
2023		 Income for the
year		 Expenditure for
the year		 Balance at
31 March 2024
£ £ £ £
General projects 58,267 160,707 (195,444) 23,530
___ ____ ___ ___
Total 58,267 160,707 (195,444) 23,530
___ ____ ___ ___

IiST Annual Report and Accounts 2023/24 Notes to Financial Statements (cont’d)

24

11 Restricted income funds (continued)

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 17c.

12 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 2023
Balance at 31 March 2024
13 Endowment Funds
Balance at 1 April 2023
Balance at 31 March 2024		 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.

14 Operating leases

Total commitments under non-cancellable operating leases at 31 March 2024 were as follows:

2024 2023
£ £
Equipment leases 29,558 76,972
Property leases 165,675 224,100
______ ______
Total 195,233 301,072
______ ______

Property leases relate to London office (break Sept 2025), Merrywood House (expires September 2025) and Sittingbourne office (break May 2025). Total property lease payments recognised as an expense in the year are £115,800 (2023: £115,425) is due within 1 year, £49,875 (2023: £106,800) is due between 2 to 5 years and £nil (2023: £1,875) is due in more than 5 years.

15 Analysis of net assets between funds

Group
Unrestricted
funds
Funds balances at 31stMarch 2024 are represented by:
£
Tangible fixed assets
4,397,240
Investments
5,814,332
Current assets
1,872,565
Current liabilities
(618,363)
___
Total net assets
11,465,774
 Restricted
Permanent
Income
Endowment
Total
funds
fund
Funds
£
£
£
483,947
4,881,187
-
5,814,332
23,530
-
1,896,095
-
-
(618,363)
_
_
___
23,530
483,947
11,973,251

The permanent endowment fund represents the asset of Princess Mary’s Trust. See note 16d for comparatives.

IiST Annual Report and Accounts 2023/24 Notes to Financial Statements (cont’d)

25

16 Comparative information relating to 2023

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		 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

IiST Annual Report and Accounts 2023/24 Notes to Financial Statements (cont’d)

26

16 Comparative information relating to 2023 (continued)

b) Analysis of total expenditure

Basis of allocation Raising funds Therapeutics
Residential care		 Fostering Training 2023
Total
20
Tot
£ £ £ £ £
£
Costs directly allocated to activities
Staff costs Direct 85,077 6,031,337 190 346,736 6,463,340 5,998,310
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		 15,560 77,798 15,560
77,798		 171,156 128,376
Finance and HR staff Staff
time		 91,154 30,385 91,154 30,385 607,694 527,961
Other Staff
time		 18,420 6,140 18,420
6,140		 122,802 141,304
Total 67,644 594,551 125,134
114,323		 901,652 797,641
Total expenditure 204,915 8,881,294 171,903
572,611		 9,830,723 9,035,712

Total expenditure

IiST Annual Report and Accounts 2023/24 Notes to Financial Statements (cont’d)

27

16 Comparative information relating to 2023 (continued)

c) Restricted funds

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

d) Analysis of assets between funds

Group
Unrestricted
funds
£
Fund balances at 31 March 2023 are represented by:
Tangible fixed assets
4,542,737
Investments
3,899,981
Current assets
3,329,436
Current liabilities
(1,249,278)
Pension liability
___
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

IIST Annual Report and Accounts 2023/24

28

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 George Viney Mr Jeremy Brier Ms Rosemary Bodiam – appointed January 2024 Ms Georgia Chataway Mrs Patricia Phillips Mrs Sarah Scarratt Mr Sanjay Shah Mr Matthew Fletcher – resigned September 2023 Mr John Harrison – resigned June 2023 Mr Scott Murdoch – resigned September 2023 Mr Robert Shipton – resigned April 2023 Dr Vinod Diwakar – resigned November 2024

Chief Executive

Gary Yexley

Company Secretary

Michael Joseph

Senior Leadership Team

Gary Yexley (Chief Executive) Michael Joseph (Finance & Corporate Services Director) Dan Lansley (Business Development Director) Robyn Bartram (Residential Services Director) Bob Beardon (Director of Workforce Development) – appointed September 2024 Laura Park (Safeguarding and Compliance Director) – resigned August 2023 Lace Jackson (Clinical Institute Director) - resigned March 2024

The senior leadership team were all in post at 10 December 2024 except as detailed above

Auditors

HaysMac LLP, 10 Queen St Pl, London EC4R 1AG

Principal Bankers

Coutts & Co, 440 Strand, London WC2R 0QS

Solicitors

Rradar, 6 Beacon Way, Hull HU3 4AE.