# **NETWORK COUNSELLING AND TRAINING LIMITED FINANCIAL STATEMENTS**
## **YEAR ENDED 31 JULY 2023**
**Company Number 01951370 Charity Number 292801**
## **NETWORK COUNSELLING AND TRAINING LIMITED FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2023**
|**CONTENTS**|**PAGES**|
|---|---|
|Reference & Administrative Information|1|
|Trustees’ Annual Report|2-9|
|Independent Examiner’s Report to the Trustees|10|
|Statement of Financial Activities|11|
|Balance Sheet|12|
|Notes to the Financial Statements|13-21|
**NETWORK COUNSELLING AND TRAINING LIMITED REFERENCE & ADMINISTRATIVE INFORMATION**
## **YEAR ENDED 31 JULY 2023**
## **Status**
The company is a registered charity and limited by guarantee. The working name it uses is Network Counselling and Training.
## **Trustees**
Eileen Cahill (Chair) Anna Vigars (Appointed 17 July 2023) Helen Britten (Appointed 17 July 2023) Stephen Lyne (Treasurer) Simon Taylor
**Company Secretary** Mat Ray
## **Senior Management Team**
Mat Ray CEO Anne Duke Head of Training
## **Registered office**
Elm Park Filton Bristol BS34 7PS
**Independent Examiner**
Joshua Kingston ACA Burton Sweet Limited The Clock Tower, 5 Farleigh Court, Old Weston Road, Flax Bourton, Bristol BS48 1UR
## **Bankers**
HSBC Bank plc 11 Canford Lane Westbury-on-Trym Bristol BS9 3DE
CAF Bank plc PO Box 289 West Malling Kent ME19 4TA
Bank of Scotland PO Box 208 21 Prince Street Bristol BS99 7JG
Triodos Bank Uk Ltd Deanery Road Bristol BS1 5AS
## **Solicitors**
Capstone Solicitors 62 Gloucester Road Bristol BS8 4AN
1
**NETWORK COUNSELLING AND TRAINING LIMITED TRUSTEES’ ANNUAL REPORT YEAR ENDED 31 JULY 2023**
## **ABOUT NETWORK**
## **Our objectives**
Network’s purpose and objectives are to promote mental, emotional and spiritual health and wellbeing in the context of a Christian ethos by:
- Providing professional counselling and related services
- Providing a range of educational and training opportunities in counselling and related areas
- Providing other opportunities for personal, psychological and spiritual development.
## **Meeting our objectives**
Providing affordable counselling to adults
- We offer up to 24 weekly sessions, either face-to-face or online
- Counselling is provided by trainee counsellors on our advanced diploma course. Until December 2022, counselling was also provided by volunteer accredited counsellors
- All counsellors are managed and supported by Network staff and receive external professional supervision.
Training people in counselling skills
- We are a nationally accredited provider of counselling skills training
- We run courses at different levels:
- Advanced Diploma in Counselling, accredited by the British Association for Counselling and Psychotherapy
- Advanced Certificate in Counselling Skills, accredited by the National Counselling and Psychotherapy Society
- Introductory and basic level courses in counselling and listening skills
- Continuing Professional Development training for other organisations
Network is financed through a mix of earned income from training fees, room hire and counselling payments as well as donated money from individuals, trusts and grant-makers.
## **Network’s constitution**
Network is constituted as a company limited by guarantee (Company No. 01951370) and governed by its Memorandum and Articles of Association dated 16 July 2008. It was registered with the Charity Commission on 11 November 1985 (Charity No. 292801).
## **Public Benefit**
The Trustees have given due regard to the public benefit guidance issued by the Charity Commission and are confident that Network meets Charity Commission requirements. Network confers public benefit by providing low-cost counselling to many who require it.
## **Risk Management**
The Trustees met regularly throughout year and received regular reports to inform their risk assessments and mitigating actions. They continue to review the major risks to which the charity is exposed and measures are in place to mitigate these risks.
## **COUNSELLING 2022-2023**
During 2022-23, Network saw 203 clients, providing 2,232 counselling sessions.
## **Network’s counselling is:**
- **Affordable** - Our clients paid a fixed fee of £22.50 per session. In comparison, most private counsellors in Bristol charge £50 to £60 per session as a minimum.
- **Longer-term** - Our clients receive up to 24 weekly one-to-one sessions. That’s around six months’ support; a duration likely to make a real difference.
2
**NETWORK COUNSELLING AND TRAINING LIMITED TRUSTEES’ ANNUAL REPORT**
## **YEAR ENDED 31 JULY 2023**
- **Professional -** Counselling is delivered by our own level 5 Advanced Diploma trainees. They are all members of the British Association of Counselling and Psychotherapy and governed by its professional and ethical frameworks. Counsellors are managed by our Clinical Lead and receive regular external clinical supervision.
- **Well-regarded** - Network is an organisational member of three national counselling bodies. Locally, we regularly receive referrals from community and primary care services, including GPs and local church leaders.
## **Our clients:**
- **Very low incomes** - 46% of Network clients are earning below £15,000 a year – an income bracket the government defines as ‘relative poverty. This income is 60% of what the Joseph Rowntree Foundation describes as _Minimum Income Standard_ .
- **Younger adults**
- 24% of clients are aged 18- 25
- 90% are under 55 years old
## **Mental health challenges**
- 44% of our clients told us they had an established mental health diagnosis
- 65% had suicidal thoughts in the previous month
- 25% had previously self-harmed
_(Information taken from 180 application forms Feb-July 2023)_
## **Measuring success**
This year we have started using the _Warwick Edinburgh Mental Wellbeing Scale (WEMBS_ ) to measure the changes in clients’ lives. This scale was designed by academics and is used by both the NHS and governments to measure wellbeing. Clients complete questionnaires in their first and last sessions with us, so we can see the impact that Network is making. We piloted this measure with the Emerging Stronger project and then rolled it to across our whole service in the summer. Here are some information points gleaned from the questionnaire responses:
## **1. We help fight depression**
It’s estimated that depression costs the UK £118 billion every year. The Health and Safety Executive recorded 17.1 million sick days due to stress and depression – significantly more than due to any other illness or injury.
Our assessment tool gives an overall score between 14 and 70. Scores under 41 indicate clinical depression and 41- 44 indicate mild to moderate depression. Our clients’ average score before counselling was 36, representing significant clinical depression. After counselling, the average score was 45, within the category of wellness.
## **2. We help build relationships**
Counselling doesn’t just help individuals, it can strengthen relationships. 62% of our clients report feeling closer to other people after counselling.
## **3. We help clients get active**
When people feel low it can be hard to stay active – they may feel tired or lacking in motivation and drive. But after Network counselling, over half our clients say they have more energy, and 60% say they are more interested in new things.
## **4. We help people to cope and function**
Life can be demanding, but counselling can give people the skills to cope with the next challenge. 40% of our clients say they feel like they can deal with problems better at the end of counselling. 60% say they are thinking more clearly and half say they are more confident than before.
3
**NETWORK COUNSELLING AND TRAINING LIMITED TRUSTEES’ ANNUAL REPORT**
**YEAR ENDED 31 JULY 2023**
## **5. We help people feel happier**
We ask people about _‘feeling cheerful’_ and _‘feeling good about myself’_ before and after counselling. And we see huge changes – 73% of clients say they feel better about themselves and 27% of clients went from _rarely_ feeling cheerful to _often_ feeling cheerful! Overall, 85% of our clients report a statistically significant improvement in their mental wellbeing _(as defined by a study from Warwick Medical School)._
We also collect qualitative feedback from clients. Some recent client quotes:
- _“I feel more at ease in myself, less frightened: Kinder to myself, and more patient.”_
- _“I really appreciate the understanding and kindness I was shown. I felt heard and respected.”_
- _“It’s amazing having a safe place to talk openly without judgement.”_
## **Emerging Stronger**
Emerging Stronger was our response to Covid-19 and its impact on the mental wellbeing of those on the lowest incomes in our community. It was funded by a number of generous trusts and ran from the summer of 2021 until December 2022.
In total, we worked with 65 people who would otherwise had no way of accessing the support they needed. We delivered over 700 sessions of safe, confidential counselling. Clients presented with a wide range of issues: anxiety, stress, depression, low self-esteem, relationship issues (including sexual issues, abuse and domestic violence), loneliness, eating and body issues, financial problems, trauma and anger. These had either been triggered or exacerbated by Covid-19 and lockdown.
Feedback from clients was consistently positive:
- _“Being really listened to and heard, understood and validated was the biggest help for me and exactly what I needed to keep my head up.”_
- _“Being listened to carefully & patiently, no matter how upset I got. I was encouraged with small, achievable strategies to meet agreed targets week by week.”_
Using the Warwick-Edinburgh Mental Wellbeing Scale gave us a great insight into the changes in our clients’ lives. At the start, an average score of under 34 put our clients in the lowest 15% of the population for wellbeing. But 87% of clients reported significant change. In particular, we saw a huge boost in people feeling good about themselves, and optimistic about their future.
The project was challenging to deliver. We were initially supporting those earning less than £750 per month and providing six focused counselling sessions. But as the project ran, we realised that we needed to adapt to better meet the needs of our community. We had lower than expected take-up and our clients were struggling to make meaningful changes within the six week programme. Working with our funders, we raised the minimum income threshold from £750 to £1,250 per month and extended the service from six to twelve sessions per person. Emerging Stronger was the first time that Network had developed a new service in response to a crisis, and we learned a lot. For example, we found that those on the lowest income – under £750 per month - struggled to engage in counselling, and often brought a higher level of complexity than other clients. We also reflected on the benefits and challenges of short-term counselling, quite a different model than we were used to.
We are grateful to all those who funded this project, and particularly for their willingness to work with us to adapt the project in response to feedback.
## **Carol’s story**
_Carol (not her real name) is a 72-year old woman, living alone in north Bristol. Post-lockdown, Carol found she was too anxious to board a bus or a train, and that she burst into tears over seemingly trivial issues. These were new experiences; not ones she had encountered before the pandemic._
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## **NETWORK COUNSELLING AND TRAINING LIMITED TRUSTEES’ ANNUAL REPORT YEAR ENDED 31 JULY 2023**
_Carol described how her counsellor tackled her anxiety, suggesting incremental steps Carol could take to build up to getting on a bus, slowly increasing the length of journey and her confidence with it._
_Over time, Carol developed the confidence not only to travel on buses within Bristol, but eventually to take a train all the way to north Wales to spend three days with friends – a booked break she had initially thought she would have to cancel._
_Carol says that thanks to Network’s Emerging Stronger project, she no longer feels anxious, her confidence has grown and she has been able to return to life after Covid._
## **TRAINING 2022-2023**
## **Network’s training is:**
- **High quality** – Our students enjoy small class sizes with one tutor for every eight students. We are proud to set high standards for our students – for example, our students must complete 50% more placement hours than the professional minimum standard.
- **Professionally recognised** – our Advanced Certificate is quality assured by the National Counselling & Psychotherapy Society (NCPS) and our Advanced Diploma by the British Association for Counselling and Psychotherapy (BACP). External examiners regularly visit and assess our curriculum and student coursework.
- **Unique** – Network’s integrative, person-centred model of counselling is a one of the few courses that actively engages with spirituality as part of training and practice.
## **Student success**
Introductory Courses - 25 students attended one of our two Introductory Courses. Some simply want to improve their listening skills, while for others, this is the first step in pursuing a career in counselling. Many go on to apply for our Advanced Certificate course.
Advanced Certificate - This year 18 students successfully completed the Advanced Certificate course. A number of these students will progress on to the Advanced Diploma course.
Advanced Diploma - 17 students join the Advanced Diploma this year, with 13 students entering Year 2. The second year cohort in particular had their studies severely impacted by Covid. A combination of lockdown and last year’s database problems meant that most stayed into a third year in order to complete their placement hours and associated assignments. However, the majority were able to graduate in October 2023 and begin their professional practice.
## **NETWORK’S ACHIEVEMENTS**
2022-23 was a year of significant change for Network. The previous year’s financial challenges led us to develop a three-year transformation plan aimed at reaching financial sustainability, while both keeping counselling clients at the heart of our work and retaining the quality of our training. 2022-23 was first year of the transformation plan, and it saw many changes:
## **Moving from ‘contribution’ to ‘payment’ for counselling**
Previously, clients were asked to make a voluntary contribution for counselling, but this was financially unsustainable. Around 25% paid nothing for counselling, and another 25% paid less than £10 per session. From January 2023, Network implemented a fixed price per session, £22.50. We are still committed to affordable counselling, which requires us to subsidise each session. £22.50 was less than half the average price charged by private counsellors in Bristol. As a result:
- We have a more dependable income stream. Every month we receive an average of £4,000 from counselling sessions.
- Our client demographics have not changed as much as expected: We are still finding that our clients are overwhelmingly drawn from the lowest income quartile.
5
**NETWORK COUNSELLING AND TRAINING LIMITED**
## **TRUSTEES’ ANNUAL REPORT**
## **YEAR ENDED 31 JULY 2023**
## **Reducing size – ending the volunteering programme**
We took the difficult decision to end our long-standing volunteer counsellor programme in December 2022. Using the generous services of experienced volunteer counsellors was not a low cost exercise: it needed dedicated administrative staff and external clinical supervision. As a result:
- We were able to reduce time and money spent on administration
- We have become more agile – able to more rapidly implement system and policy changes
- The number of counselling sessions delivered only dropped by 12%
## **Streamlining systems**
We have successfully implemented an online room booking system. This allows counsellors to book rooms at any time without admin support and private counsellors can pay online for room usage. This has been very successful – it is popular with counsellors, has cut down on double-bookings and saved us many hours of work every week.
We have updated our payment system for counselling sessions, so that 95% of our transactions are now electronic. We offer a direct debit payment method for clients and students. This has cut down on administration and banking time, the system is more secure and data and records easier to retrieve.
Improving our Civi database system has been one of the greatest challenges of the year. We worked with external experts to streamline our processes.. At the start of the year, there were 36 administrative steps between a client approaching us and their first counselling session. That was eventually pared down to 8 steps.
As a result:
- We have been able to reduce our administrative workload, spending less of our income on admin.
- These ‘behind the scenes’ changes have had one significant impact for our clients – we’ve drastically reduced our waiting list. Last year we had to close our waiting list, with clients waiting up to 12 months to see a counsellor. At the end of this year, we are proud that our average wait was 7 weeks. This is significantly shorter than both the NHS and our comparable local providers.
## **Running a fundraising appeal**
During 2022-23, we ran a fundraising appeal to cover a serious budget deficit We were extremely grateful for £20,000 match-funding from a long-standing supporter. Both staff and trustees reached out to local organisations, existing supporters and ex-students to ask for financial support. As a result:
- We raised £28,608 plus the £20,000 match-funding referred to above in unrestricted income, which made a significant impact to our finances. We are very grateful to everyone who made a contribution, large or small.
## **Reviewing pay**
We recognised that the year’s particularly tough economic climate had an impact on our staff, with a sharp rise in the cost of living. We have worked hard to ensure a cost of living salary uplift was included in our budget.
## **Repaying loan**
We have been able to put in place a repayment schedule for a long-standing interest-free loan we took out to help our building project.
6
**NETWORK COUNSELLING AND TRAINING LIMITED TRUSTEES’ ANNUAL REPORT YEAR ENDED 31 JULY 2023**
## **FINANCIAL REVIEW**
This has been an important year for Network. Although we had projected a large deficit, our fundraising appeal made a significant and timely difference, so we ended the year with a small surplus. The key points are:
- We have increased our income from both student fees and client payments.
- We have been able to start paying off a long-standing loan.
- We were able to give staff a cost-of-living wage uplift.
- We continue to rely on substantial fundraising in a challenging climate.
## **Reserves Policy**
The Board of Trustees’ approved reserve policy follows guidance published by the Charity Commission. The policy is reviewed annually. This year we were able to rebuild our reserves to over £45,000 as planned.
## **FUTURE PLANS**
In 2023-24 we will continue to provide high quality, affordable counselling and professionally accredited counselling training. It will be the second of year of Network’s transformation plan, moving towards financial sustainability. The main emphasis will be on consolidating the changes we made during 2022-23, ensuring that all systems are efficient and fit for purpose. We will continue to work to increase our income – both earned and voluntary.
We also aim to develop an Access Fund. This will offer a bursary to those who are unable to afford counselling. We are aware that our pricing model may exclude some in our community and do not want finance to be a barrier to accessing support. So we will develop a fund to cover the cost of counselling for those people who would not otherwise be able to access our services.
We will develop on our Equality, Diversity and Inclusion practices. We want to be an organisation that makes all people feel welcome and valued. We will take steps to listen to our stakeholders – ensuring that the voices of clients and students from minority groups are heard throughout the organisation.
We will explore developing our counselling capacity. With robust systems in place, we have the opportunity to increase the number of counsellors and clients we work with. So we will work towards bringing new counsellors on board by offering placements to students from other, similar learning institutions.
## **FUNDING SOURCES**
Network received no income from public monies.
This year’s income has come from a number of sources:
|Course fees|55%|
|---|---|
|Counselling payments|12%|
|Room hire|4%|
|**Earned income total**|**71%**|
|Individual & church giving|22%|
|Trusts and grants|7%|
|**Voluntary income total**|**29%**|
7
**NETWORK COUNSELLING AND TRAINING LIMITED**
## **TRUSTEES’ ANNUAL REPORT**
## **YEAR ENDED 31 JULY 2023**
We are enormously grateful to the Trusts that generously funded Network this year: The Burden Trust, Dame Violet Wills Trust, The Souter Trust, The Leonard Laity Trust, The Asda Foundation and The National Lottery.
Thank you to the following churches who have been generous and committed supporters of Network for many years – St Michael’s Stoke Gifford, Westbury Baptist Church, Zion United Church, Tyndale Baptist Church, Stapleton Parochial Church, Cairns Road Baptist Church and All Saint Compton Greenfield.
And thank you to Henbury Golf Club for their generosity this year.
Finally, thank you to the many loyal individuals who believe in the work which Network does, and who financially support Network every month and throughout the year.
## **STATEMENT OF TRUSTEES’ RESPONSIBILTIES**
The trustees (who are also directors of Network Counselling & Training Limited for the purposes of company law) are responsible for preparing the Trustees’ Report (incorporating the strategic report and directors’ report) and the financial statements in accordance with 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 Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
8
**NETWORK COUNSELLING AND TRAINING LIMITED TRUSTEES’ ANNUAL REPORT**
## **YEAR ENDED 31 JULY 2023**
## **DECLARATION**
The annual report has been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006 and was approved by the Board of Trustees on:
……………………….. 06 April 2024
Signed on its behalf by:
…………………………………………….
Eileen Cahill, Chair of Trustees
9
**NETWORK COUNSELLING AND TRAINING LIMITED INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES**
**YEAR ENDED 31 JULY 2023**
**Independent examiner’s report to the trustees of Network Counselling & Training Limited (‘the Company’)**
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 July 2023.
.
## **Responsibilities and basis of report**
As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
## **Independent examiner’s statement**
Since the Company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Joshua Kingston ACA Burton Sweet Limited The Clock Tower 5 Farleigh Court Old Weston Road Flax Bourton Bristol BS48 1UR
Date: …………………………… 06 April 2024
10
## **NETWORK COUNSELLING AND TRAINING LIMITED**
## **STATEMENT OF FINANCIAL ACTIVITIES (Including Income and Expenditure Account) YEAR ENDED 31 JULY 2023**
|**Note**
**Income from:**
Donations and legacies
**2**
Other trading activities
**3**
Investment income
Charitable activities
**4**
**Total income**
**Expenditure on:**
Raising funds
**5**
Charitable activities
**6**
**Total expenditure**
**Net income/(expenditure)**
**Transfers between funds**
**16**
**Net movement in funds**
**Total funds at 1 August 2021**
**16**
**Total funds at 31 July 2022**
**16**|**Unrestricted**
**Funds**
**£**
95,346
11,987
485
228,134
335,952
3,700
281,569
285,269
50,683
-
50,683
510,790
561,473|**Restricted**
**Funds**
**£**
1,000
-
-
220
1,220
-
46,526
46,526
(45,306)
-
(45,306)
78,111
32,805|**Total Funds**
**2023**
**£**
96,346
11,987
485
228,354
337,172
3,700
328,095
331,795
5,377
-
5,377
588,901
594,278|Total Funds
2022
£
59,879
11,236
43
200,962
272,120
48
300,102
300,150
(28,030)
-
(28,030)
616,931
588,901|
|---|---|---|---|---|
The charity has no recognised gains or losses other than the results for the year as set out above
All of the activities of the charity are classed as continuing
Prior year fund comparatives are shown in note 11
**The notes on pages 13 to 21 form part of these financial statements**
**11**
## **NETWORK COUNSELLING AND TRAINING LIMITED**
## **BALANCE SHEET**
**AS AT 31 JULY 2023**
Company No. 01951370
|**Note**
**Fixed Assets**
Tangible assets
**12**
**Current Assets**
Debtors
**13**
Cash at bank and in hand
**Creditors : Amounts falling due**
**within one year**
**14**
**Current Assets Less Current Liabilities**
**Creditors : Amounts falling due**
**after more than one year**
**15**
**Net assets**
**Funds**
**Unrestricted funds**
**17**
**Restricted funds**
**17**|**2023**
**£**
1,375
97,781
99,156
(73,753)|868,803
25,403
(299,928)
594,278
561,473
32,805
594,278|2022
£
12,538
88,052
100,590
(86,845)|888,249
13,745
(313,093)
588,901
510,790
78,111
588,901|
|---|---|---|---|---|
For the year in question, the charitable company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
## Directors' responsibilities;
The members have not required the charitable company to obtain an audit of its accounts for the year in question in accordance with section 476.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
These financial statements were approved by the trustees on …............................ and are signed on their behalf by:06 April 2024
Eileen Cahill Chair of Trustees
**The notes on pages 13 to 21 form part of these financial statements**
**12**
## **NETWORK COUNSELLING AND TRAINING LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **YEAR ENDED 31 JULY 2023**
## **1 Accounting policies**
- a) The financial statements have been prepared in accordance with the historical cost convention and in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 and the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2019.
The charity is a public benefit entity as defined under FRS102.
The trustees consider that there are no material uncertainties affecting the ability of the charity to continue as a going concern, despite the impact of Covid-19, and therefore the financial statements are prepared on the going concern basis. Please see going concern comments in the Financial Review section of the Trustee's Report for more details of this justification.
- b) All income is included in the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.
- c) Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of donation.
- d) Legacies are recognised when the charity is legally entitled to the legacy and the amount can be quantified with reasonable accuracy. Entitlement is regarded as the earlier of the charity being notified of an impending distribution or the legacy being received.
- e) Expenditure is recognised in the period in which it is incurred. Expenditure includes attributable VAT which cannot be recovered. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.
- f) Raising funds costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Support costs are those costs incurred directly in support of expenditure on the objects of the charity. Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.
g) Expenditure on tangible assets is capitalised if the cost of any item exceeds £1,000.
- h) Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Freehold Property 2% straight line Leasehold Property 50 years Plant & Machinery 4% straight line Fixtures & fittings 25% straight line
- i) Unrestricted funds are donations and other income received or generated for the objects of the charity without further specified purpose and are available as general funds, unless designated by the Trustees.
- j) Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.
- k) The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the period.
**13**
## **NETWORK COUNSELLING AND TRAINING LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **YEAR ENDED 31 JULY 2023**
## **2 Donations and legacies**
|Charitable donations and grants
**Prior year comparative**
Charitable donations and grants
**Other trading activities**
Room hire|**Unrestricted**
**Funds**
**£**
11,987
11,987|**Unrestricted Restricted**
**Funds**
**Funds**
**£**
**£**
95,346
1,000
95,346
1,000
**Unrestricted Restricted**
**Funds**
**Funds**
**£**
**£**
29,313
30,566
29,313
30,566
**Restricted Total Funds**
**Funds**
**2023**
**£**
**£**
-
11,987
-
11,987|**Total Funds**
**2023**
**£**
96,346
96,346
**Total Funds**
**2022**
**£**
59,879
59,879
Total Funds
2022
£
11,236
11,236|
|---|---|---|---|
## **3 Other trading activities**
All income from other trading activities in 2022 was unrestricted.
## **4 Income from charitable activities**
|Training
Counselling client payments|**Unrestricted Restricted**
**Funds**
**Funds**
**£**
**£**
188,232
220
39,902
-
228,134
220|**Total Funds**
**2023**
**£**
188,452
39,902
228,354|
|---|---|---|
**14**
## **NETWORK COUNSELLING AND TRAINING LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **YEAR ENDED 31 JULY 2023**
- **4 Income from charitable activities** _**(continued)**_
|**Prior year comparative**
Training
Counselling client payments
**5**
**Expenditure on raising funds**
Fundraising costs
**6**
**Charitable activities expenditure**
_Direct costs_
Premises costs
Training courses and CPD costs
Sundry counselling costs
Counsellor supervision
Wages and salaries
_Support costs_
Rent and rates
Repairs and maintenance
Cleaning
Utilities
Printing, postage & stationery
Telephone
Insurance
Legal & professional fees
Sundry support costs
Household costs
IT
Wages & salaries
Other staff costs
Depreciation
Governance costs (note 7)
Loan interest
Bad debts|**Unrestricted Restricted**
**Funds**
**Funds**
**£**
**£**
169,050
-
30,916
996
199,966
996
**Total Funds **
**2023**
**£**
3,700
3,700
**Total Funds **
**2023**
**£**
125
11,377
2,482
18,554
120,835
3,599
1,566
8,093
8,523
1,802
1,006
3,311
2,676
2,621
31
20,939
76,607
552
19,446
2,328
20,195
1,427
328,095|**Total Funds**
**2022**
**£**
169,050
31,912
200,962
**Total Funds**
**2022**
**£**
48
48
**Total Funds**
**2022**
**£**
300
6,442
4,104
28,477
114,102
4,093
5,187
5,965
6,311
2,825
847
3,546
1,321
1,928
136
18,928
58,436
865
19,880
2,260
14,149
-
300,102|
|---|---|---|
**15**
## **NETWORK COUNSELLING AND TRAINING LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **YEAR ENDED 31 JULY 2023**
## **7 Governance Costs**
|Independent examiner's fee:
For current independent examination
For current year accounts preparation|**Total Funds **
**2023**
**£**
1,397
931
2,328|**Total Funds**
**2022**
**£**
1,356
904
2,260|
|---|---|---|
- **8 Net income/expenditure for the year**
## **This is stated after charging:**
|Depreciation
Independent examiner's fee|**Total Funds**
**2023**
**£**
19,446
2,328|Total Funds
2022
£
19,880
2,260|
|---|---|---|
No Trustees received any remuneration or reimbursement for expenses during the year or the previous year.
Aggregate donations from Trustees, key management personnel and related parties were £3,850 (2022: £2,400).
## **9 Staff costs and numbers**
|The aggregate payroll costs were:
Wages and salaries
Social security costs
Employer's pension contributions|**Total Funds**
**2023**
**£**
191,162
4,105
2,175
197,442|Total Funds
2022
£
169,265
1,217
2,056
172,538|
|---|---|---|
No employee received emoluments of more than £60,000.
The Trustees consider themselves, along with the Chief Executive to be the key management personnel of the charity. During the year, the Chief Executive was paid total employment benefits (gross salary, employer's NI and employer's pension) of £32,685 (2022: £24,173).
**16**
## **NETWORK COUNSELLING AND TRAINING LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **YEAR ENDED 31 JULY 2023**
## **9 Staff costs and numbers** _**(continued)**_
The average number of employees during the year was as follows:
|Average headcount of employees|**Total**
**2023**
**No.**
14|Total
2022
No.
14|
|---|---|---|
## **10 Taxation**
The charity is exempt from corporation tax on its charitable activities.
## **11 Prior year fund comparatives**
|**Income from:**
Donations and legacies
Other trading activities
Investment income
Charitable activities
**Total income**
**Expenditure on:**
Raising funds
Charitable activities
**Total expenditure**
**Net expenditure**
Transfers between funds
**Total funds at 1 August 2021**
**Total funds at 31 July 2022**|**Unrestricted Restricted**
**Funds**
**Funds**
**£**
**£**
29,313
30,566
11,236
-
43
-
199,966
996
240,558
31,562
48
-
279,604
20,498
279,652
20,498
(39,094)
11,064
-
-
549,884
67,047
510,790
78,111|**Total Funds**
**2022**
**£**
59,879
11,236
43
200,962
272,120
48
300,102
300,150
(28,030)
-
616,931
588,901|
|---|---|---|
**17**
## **NETWORK COUNSELLING AND TRAINING LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **YEAR ENDED 31 JULY 2023**
## **12 Tangible fixed assets**
|**Cost**
At 1 August 2022
At 31 July 2023
**Depreciation**
At 1 August 2022
Charge for the year
At 31 July 2023
**Net book value**
**At 31 July 2023**
At 31 July 2022|**Freehold**
**Property**
928,889
928,889
74,312
18,579
92,891
835,998
854,577|**Leasehold**
**Property**
43,361
43,361
9,689
867
10,556
32,805
33,672|**Plant &**
**Machinery**
**£**
46,290
46,290
46,290
-
46,290
-
-|**Fixtures &**
**Fittings**
**£**
42,093
42,093
42,093
-
42,093
-
-|**Total**
**£**
1,060,633
1,060,633
172,384
19,446
191,830
868,803
888,249|
|---|---|---|---|---|---|
The leasehold property, leasehold improvements and certain other assets are situated in Knowle, Bristol and are used by our partner charity, Filwood Hope (see note 16).
The trustees have chosen to carry the above freehold property at cost less depreciation. At the year end the net book value of £835,999 (2022: £854,577) was substantially in excess of the market value, if sold in its current use, which was considered to be £500,000.
## **13 Debtors**
|Other debtors
Tax recoverable
**Creditors: amounts falling due within one year**
Social security and other taxes
Accruals and deferred income
Other creditors|**2023**
**£**
1,375
-
1,375
**2023**
**£**
710
29,139
43,904
73,753|2022
£
12,362
176
12,538
2022
£
694
43,207
42,944
86,845|
|---|---|---|
## **14 Creditors: amounts falling due within one year**
**18**
## **NETWORK COUNSELLING AND TRAINING LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **YEAR ENDED 31 JULY 2023**
## **15 Creditors: amounts falling due after more than one year**
|Other creditors|**2023**
**£**
299,928
299,928|2022
£
313,093
313,093|
|---|---|---|
Included within other creditors due within 1 year and after more than 1 year is a loan from Triodos Bank. The Bank holds a fixed and floating charge over the land at Elm Park, Filton, Bristol as security for repayment of the loan.
## **16 Movement in funds**
|**Unrestricted funds**
General reserve
**Restricted funds**
Filwood Hope
Emerging Stronger
Core costs
Counselling
**Total funds**|**At**
**1 Aug**
**2022**
**£**
510,790
510,790
33,672
27,169
16,670
600
78,111
588,901|**Income**
**£**
335,952
335,952
-
220
-
1,000
1,220
337,172|**Expenditure**
**Transfers**
**£**
**£**
(285,269)
-
(285,269)
-
(867)
-
(27,389)
-
(16,670)
(1,600)
-
(46,526)
-
(331,795)
-|**At**
**31 Jul**
**2023**
**£**
561,473
561,473
32,805
-
-
-
32,805
594,278|
|---|---|---|---|---|
The majority of our supporters donate towards the work of Network as a whole, entrusting us to steward their donations well and use them where they are most needed. Some funds are donated with specific requirements around what they are spent on.
## _Restricted funds_
_Filwood Hope -_ The Filwood Hope fund was set up during the year ended 30 June 1994 when the company received a gift of £60,000 from the Mervyn Scott-Lindsey Trust to enable the setting up of a drop-in centre in the Knowle West district of Bristol. The company purchased a leasehold property in Knowle West with a term of 123 years for the use of Filwood Hope Project. Substantial improvements were made to the property using funds designated for the purpose. The Filwood Hope Project now operates as a separate charity with its own trustees. The movements above represent the depreciation of the original investment in the property and the subsequent improvements.
**19**
## **NETWORK COUNSELLING AND TRAINING LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **YEAR ENDED 31 JULY 2023**
## **16 Movement in funds (continued…)**
_Emerging Stronger_ - The Emerging Stronger project was a specific piece of work designed to help those on the lowest incomes recover from the pandemic. We received money from a number of local funders which was restricted to costs associated with this project only. See narrative report for more information on delivery and outcomes.
_Core costs_ - Network is deeply grateful for the support of those Trusts and Foundations who specifically support the core costs involved in running our charity, including the costs associated with our premises, office, administrative and management salaries and the costs of us raising more funds.
_Counselling_ - Some supporters, including Trusts and Foundations, other organisations or groups, and individuals, donate to our work in response to a specific funding request. Where this request is specifically and explicitly for costs directly and immediately associated with the delivery of affordable counselling these funds are 'restricted' to Counselling.
## **Movement in funds - prior year**
|**Unrestricted funds**
General reserve
**Restricted funds**
Filwood Hope
Emerging Stronger
Core costs
Counselling
**Total funds**|**At**
**1 Aug**
**2021**
**£**
549,884
549,884
34,973
31,474
-
600
67,047
616,931|**Income**
**£**
240,558
240,558
-
996
24,566
6,000
31,562
272,120|**Expenditure**
**Transfers**
**£**
**£**
(279,652)
-
(279,652)
-
(1,301)
-
(5,301)
-
(7,896)
-
(6,000)
-
(20,498)
-
(300,150)
-|**At**
**31 Jul**
**2022**
**£**
510,790
510,790
33,672
27,169
16,670
600
78,111
588,901|
|---|---|---|---|---|
**20**
## **NETWORK COUNSELLING AND TRAINING LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **YEAR ENDED 31 JULY 2023**
## **17 Analysis of net assets between funds**
|Tangible fixed assets
Loans
Other net assets|**Unrestricted**
**Funds**
**£**
835,998
(343,364)
68,839
561,473|**Restricted**
**Funds**
**£**
32,805
-
-
32,805|**Total Funds**
**2023**
**£**
868,803
(343,364)
68,839
594,278|
|---|---|---|---|
## **Analysis of net assets between funds - prior year**
|Tangible fixed assets
Loans
Other net assets|**Unrestricted**
**Funds**
**£**
854,577
(356,037)
12,250
510,790|**Restricted**
**Funds**
**£**
33,672
-
44,439
78,111|**Total Funds**
**2022**
**£**
888,249
(356,037)
56,689
588,901|
|---|---|---|---|
## **18 Company limited by guarantee**
The company is limited by guarantee and as such has no issued share capital. In the event of the company being wound up the liability of the members is limited to £10 each.
## **19 Related party transactions**
There are no further related party transactions in this year or the prior year other than those reported elsewhere in these financial statements.
**21**