WEST_YORKSHIRE_FAMILY_MED - Accounts

The Trustees present their report and financial statements for the year ended 31 March 2021.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Charity's Memorandum and Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)”

West Yorkshire Family Mediation Council Limited (t/a West Yorkshire Family Mediation) is also referred to as WYFMS.

Mission

The charity’s mission is:

To provide a service that helps parents and couples whose relationships are ending or have already ended, to dissolve those relationships in a way that causes least distress to themselves and to their children, both emotionally and financially.

The founders of WYFMS held a firm belief in mediation being the most positive and constructive way to resolve conflict within families.  Furthermore, they believed mediation was a way to help resolve disputes whilst introducing users to the potential of solving other life problems through discussion and agreement rather than through argument.

Aim

The charity’s aim is to make the family mediation service available and accessible to all families and family members affected by divorce, separation and family relationship breakdown. It’s work is to help separating couples achieve the best possible outcomes for themselves and their children. We will promote good parenting, fairness and respect towards each other through and beyond the separation process.

The aims, objectives and activities are reviewed each year. This review looks at what the charity has achieved and the outcomes of its work over the previous 12 months. The review considers the key activities and what benefits they have brought to those the charity was set up to help. The review helps the charity stay focused on its aims and objectives.

We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In particular, we have considered how planned activities will contribute to our aims and objectives and consider they have complied with the duty of section 4 of the 2011 Charites Act.

Background

This was a unique year for the service. We found ourselves faced with repeated Covid-19 related lockdowns and restrictions affecting all areas of operations which resulted in a halt to all face to face mediation in March 2020, a situation that remains. We are, however, proud to say that despite this, we have continued to provide our full range of services throughout this period, albeit delivered online rather than in person.

The turmoil created by the pandemic saw many legal services either reducing their operations or closing completely whilst learning how to adapt to the new working environment. Family courts were similarly struck and found themselves operating at a severely reduced capacity and capability creating an excessive backlog of cases. Backlogs in private law cases have increased by 18% over the past 12 months and for those cases being heard, the average time to conclude a case is now 29 weeks.

Essentially, the support available to families wishing to resolve matters through the already overburdened court system was severely affected by the fallout created by the presence of the pandemic.

Situation

Forecasts were that due to the extra pressure placed upon families during lockdowns, the number of relationship break-ups and divorce applications would rise steeply. Although a bit early to give any accurate statistics on this (the ONS have not yet released their statistics for this period), indications are that there was no significant rise in the number of families breaking up. 2021 – 2022 will show whether the longer-term pressure put on families forced to live in close confines 24/7, often with a reduced income will result in a rise in numbers of family break downs.

Mission

Our philosophy during this period has not changed. It continued to be to ensure that prospective clients seeking our services were equipped with the right information so that they could make informed choices. We aimed to allow them to proactively help themselves by widening their options to include mediation as a path to resolving their issues rather than see court as the only option.  

There has never been a time when our mission, and the thought process behind it were more pertinent. Our mission is quite clear: “We are to provide a service that helps parents and couples whose relationships are ending or have already ended, to dissolve those relationships in a way that causes least distress to themselves and to their children, both emotionally and financially.”

This derives from a firm belief that mediation is the most positive and constructive way to resolve conflict within families.  The charity’s founders saw mediation as a way to help resolve disputes whilst introducing people to the potential of solving other life problems through discussion and agreement rather than through argument.

Affordability.

A significant aim for the service is to deliver our services to everyone, not just to those in a healthy financial position. Our non-profit, charitable status allows us to operate primarily for the benefit of our clients without profit as our main motive. We have always striven to support those who need us most, regardless their financial position and are very fortunate to hold a Legal Aid Agency (LAA) contract allowing us to deliver mediation support to those on low incomes. During the period under report, this has been supplemented by a bursary, funded by the National Lottery Community Fund, which has allowed us to provide services to those who do not qualify for legal aid but who would otherwise find mediation beyond their financial reach. Thirteen cases this year were funded by our bursary.

Operations

In order to comply with national restrictions on social distancing, our staff operated throughout this period from their homes.

Teams. As a service we are one team but for ease, we split operations into two areas: administrative support and mediation services. With the given situation, maintaining the full capabilities of both teams was essential if we were to continue to operate effectively.

Administrative Support

Ordinarily based out of our Bradford office, the administrative support team could normally rely upon strong telephone, IT and equipment support, as well as the mutual support expected between co-located colleagues. Working from remote, private residences initially created a number of problems for the team, the main being IT related.

With no contingency plan in place to cover such a situation, the team had to think on their feet to put in place new procedures to ensure they could continue to deliver services seamlessly. Staff were given the tools to operate remotely from the servers, including a telephone system adapted to allow the re-routing of calls to them. The most difficult aspect of the change to the administrative working practices was to adapt procedures so clients could easily access and navigate services whilst we remained compliant with the stipulations set by both the Family Mediation Council (FMC) and the LAA.

Mediation Support

Ordinarily based out of our Bradford and Leeds mediation suites, the mediators were affected in a similar manner, finding themselves delivering mediation sessions remotely from their homes.

As with previous years, the service continued to utilise a mix of employed and contracted (self-employed) mediators, all of whom are fully qualified and accredited with the FMC. We lost both of our existing contracted mediators at the beginning of lockdown, however, were fortunate to engage the services of two further contracted mediators as well as that of an experienced mediator working to regain lapsed accreditation (working under supervision). None of our mediators work full time with each working one or two days a week.

Family mediation is a practice that has always promoted face to face contact between mediators and clients and although the FMC had previously permitted remote, online mediation, it was not widely used as the guidance was that face to face mediation was the primary, almost only method of delivery. As a result of this, the mediators had to adapt very quickly to the situation and develop an effective method to deliver their services remotely.

Video conferencing was utilised for both MIAMs and mediation sessions with the occasional MIAM being conducted via telephone (due to technical difficulties). Feedback received from clients to date has revealed that almost all clients that underwent a MIAM considered online delivery to be ‘as good as’ or ‘better’ than attending face to face and 60% of mediation clients considered it to be ‘as good as’ or ‘better’ than face to face delivery.

Capability

We provided mediation services each Monday, Tuesday, Thursday and Friday weekly. With 255 possible working days throughout the year, we provided 237 mediation days (an average of 4.6 days per week).

Client Numbers. The service expected client numbers to drop markedly this year, however, with no precedent, there was no indication as to just how severe or otherwise this drop would be.

In total, the service delivered 834 MIAMS throughout the year (compared to 908 during 2019-2020), a drop of only 8% which, in the circumstances was a healthy figure. Mediation case numbers dropped by 15% with actual sessions dropping by 16%. Again, considering the circumstances, these figures were acceptable.

Finances

With the drop in client numbers, the service experienced a similar drop in annual income. We were, however, fortunate enough to be awarded government and private grants totalling £20,000 (Covid-19 support) which did help offset the shortfall, however, income fell 17% below the projected budget for the year.

Fundraising

Section 162a of the Charities Act 2011 requires charities to make a statement regarding fundraising activities. The legislation defines fundraising as ‘soliciting or otherwise procuring money or other property for charitable purposes’. The charity does not actively raise funds from the public either directly or via use of an agent, accordingly no such amounts are presented in the financial statements for the year under review. The charity has received no complaints in relation to fundraising activity for the year under review.

Given the nature of the funding of the charity the Trustees consider that it remains appropriate not to be voluntarily bound to be regulated by the Fundraising Regulator.

The income for the year amounted to £143,811 (2020 £145,167) with expenditure amounting to £152,323 (2020 £158,660), resulting in a net loss of £8,512 (2020 a net loss of £13,493).

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between six to nine months based on this year's budget (£76,000-£114,000). The trustees consider that reserves at this level will ensure that in the event of a significant drop in funding they will be able to continue the charity's current activities whilst consideration is given to ways in which additional funds may be raised.

While unrestricted free funds stand at £68,995 (2020 £82,354) there are also designated funds of £41,283 (2020 £41,871). These designated funds are to cover the value of any fixed assets and any staffing contingencies that may arise, such as covering the cost of sickness, maternity and other statutory pay requirements and the cost of temporary cover required in these instances. Furthermore, it is to cover the cost of potential staff redundancies in the event of a loss of funding. The present level of free reserves available to the charity is within the required level.

The Trustees have assessed the major risks to which the Charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Looking Forward

There is little doubt that 2021 and beyond will see lasting and significant changes to the environment in which we operate. With this in mind, looking ahead, the service is facing a number of challenges and opportunities.

Environment. The disruption being experienced throughout the court services will not ease overnight. Indeed, the HM Courts & Tribunals Service estimate that private law family cases may not return to pre-Covid levels for another three years. Leeds and Bradford family courts are currently operating with up to 4 months lead up between initial application and first hearing.

The courts have continued to insist that people attempt mediation prior to approaching them and this must continue. Not only does such action help to alleviate pressure on the court system, it is a great help in educating people that there is a viable alternative to court.

Mediation funding. The Ministry of Justice recently released £1 million to support families with child issues to attempt mediation rather than turn directly to the courts for resolution. This is a direct attempt by the MoJ ease the burden on the courts by encouraging people to engage in mediation by utilising individual case grants up to £500. In reality, this funding will support in the region of 1000 cases nationwide but if seen to be successful in reducing the number of family court cases, there is an ambition that further funding will be made available beyond this grant.

Promotion. First and foremost, we are a charity dedicated to supporting those who need our expertise. We must strive to communicate this message effectively to ensure people recognise mediation as a viable, quick and cost-effective option. With the courts under so much pressure, families in conflict that are considering that route require clear and realistic information about the long delays they are highly likely to encounter. They need help in understanding that in the meantime, they can be productive in resolving their disputes. Mediation must be paramount in their options as it will help minimise the disruption in their lives and prevent further deterioration of already fragile family relationships. 

Changes to delivery. Not all of the effects of living in a world of Covid19 have been negative. For example, people have had their eyes opened to remote communication via mediums such as Zoom, Teams and Skype. Video conferencing used to be alien to the majority of the population but has now been accepted by many as a routine method of communication. We adapted quickly to this environment and must continue to improve this effective method of delivery.

With this in mind, we will resume a ‘face to face’ mediation service when safe to do so and in compliance with government guidelines, however, we will continue to offer online mediation as our primary means of delivery

Operating costs. We have managed year on year reductions to our operating costs and this must continue, but in a manner that does not affect the quality of service received by our clients. Despite being a ‘non-profit’, we must be able to cover our operating costs whilst having an ambition to produce a small profit to bolster our limited reserves. Operating costs have already been addressed with the permanent Leeds office closing and the Bradford rent costs being reduced. This area, as well as predicted reductions in the costs of administration leading from moving operations from paper to digital will produce the reduction required to ensure that the financial aspect of the service is healthy.

Income. We operated at an average income of £607 per mediation day. By operating only four days a week we lost out on a possible income of £37,000 by not offering an additional weekly mediation day each Wednesday. It is our aim to increase our capability to both provide this extra day and attract enough new clients to make this viable.

The Charity is a company limited by guarantee registered in England and Wales on 13 August 1996.

The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Under the requirements of the Memorandum and Articles of Association the members of the Management Committee are elected to serve for a period of one year after which they must be re-elected at the Annual General Meeting.

The management committee seek to ensure that the needs of the charity are appropriately reflected through the diversity of the trustee body.

Potential trustees are invited to meet with the service manager for an informal introduction and overview of the organisation. Information given to potential trustees includes:

• The obligations of the management committee members

• The main documents which outline the operational framework of West Yorkshire Family Mediation, including the Memorandum and Articles of Association

• The organisation's financial position, as set out in the latest published accounts and quarterly financial reports

• Future plans

The potential trustee is invited to attend one or more general meetings of the management committee to observe how reporting and decision-making discussions and operations are undertaken and to meet and talk with other committee members.

In addition to internal documents and reports, various Charity Commission publications are provided to potential trustees to assist their understanding of the role of the management committee and its members.

Following this introduction to the organisation, the potential trustee is invited to make an application to become a committee member.

None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

Indemnity insurance has been taken out during the year at a cost of £400, (2019 - £401).

The management committee is made up of a minimum of 3 members who meet quarterly and are responsible for agreeing the strategic direction and policy of WYFMS. A representative from the organisation's accountants, Naylor Wintersgill Limited, attends the quarterly meetings to advise on questions of finance.

Day to day responsibility for the provision and development of services rests with the Service Manager. The Service Manager is responsible for ensuring that the charity delivers the services specified. The Service Manager oversees day to day running of the organisation and its operations. Responsibility for individual supervision of staff teams and ensuring that the teams continue to develop their skills and working practices lies with the Service Supervisor (mediation team) and the Office Manager (administration team), who report back to the Service Manager.

The Trustees report was approved by the Board of Trustees.

I report on the financial statements of the Charity for the year ended 31 March 2021, which are set out on pages 10 to 22.

The Charity’s Trustees, who are also the directors of West Yorkshire Family Mediation Council Limited for the purposes of company law, are responsible for the preparation of the financial statements. The Trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:

examine the financial statements under section 145 of the 2011 Act;

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the financial statements present a ‘true and fair view’ and the report is limited to those matters set out in the next statement.

In connection with my examination, no matter has come to my attention:

to keep accounting records in accordance with section 386 of the Companies Act 2006; and

to prepare financial statements which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities;

to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2021.

The Trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to accounts, so far as applicable to the company.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

West Yorkshire Family Mediation Council Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 33 Manor Row, Bradford, BD1 4PS 33 Manor Row, Bradford, BD1 4PS.

The accounts have been prepared in accordance with the Charity's Memorandum and Articles of Assoication, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The Charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Voluntary income including donations and grants that provide core funding or are of a general nature are recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.

Investment income is recognised on a receivable basis.

Income from charitable activities includes income recognised as earned (as the related goods or services are provided) under contract.

Legacies are recognised on receipt or otherwise if the Charity has been notified of an impending distribution, the amount is known, and receipt is expected.

Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Grants listed below

Mediation fees

Brochure income

Sessional mediator fees

Travel and subsistence

Rent, rates and service charges

Insurance

Telephone

Computer software and maintenance

Printing, postage and stationery

Subscriptions and affiliation fees

Sundry expenses

Advertising

Bank charges

Accountancy fees

Independent examiner's fee

Indemnity insurance

All costs are allocated to the sole activity of the charity.

None of the Trustees (or any persons connected with them) received any remuneration, benefits or expenses from the Charity during the current or previous year.

The average monthly number of employees during the year was:

As a charity the company is exempt from tax on income falling within part II of the Corporation Tax Act 2010 and on gains falling within s256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objectives. No tax charges have arisen in the charity.

The Listening Ear Project was funded by Awards for All. Part of the funding has been spent on fixed assets and the amount was transferred to the fixed asset fund to show depreciation and net book value at the year end.

The National Lottery funded client mediation.

The National Lottery funded IT costs.

Staffing contingency is to cover cost of sickness, maternity and other statutory pay requirements and the cost of temporary cover required in these instances, also to cover the cost of potential staff redundancies, this expenditure is not expected in the foreseeable future.

Fixed assets were purchased during the year. A transfer has been made to ring fence the net book value of these assets.

There were no disclosable related party transactions during the year (2020 - none).

The remuneration of key management personnel is as follows.