Richmond Psychosocial Foundation Interna - Charities report - 21.2

REGISTERED COMPANY NUMBER: 05794508 (England and Wales)

REGISTERED CHARITY NUMBER: 1116206

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

FOR

RICHMOND PSYCHOSOCIAL FOUNDATION

INTERNATIONAL

(A COMPANY LIMITED BY GUARANTEE)

Page

Report of the Trustees

1

to

3

Independent Examiner's Report

4

Statement of Financial Activities

5

Balance Sheet

6

Notes to the Financial Statements

7

to

12

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2021. The trustees have adopted the provisions of 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 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The charity (RPFI) aims to offer helpful responses to mental health problems whether caused by mental illness, drug addiction, learning difficulties or deprivation and abuse.

Significant activities

The charity runs residential homes in South West London, providing therapeutic services for adults recovering from mental health problems, for adults with moderate learning difficulties and those with lesser dependency needs but unable to live alone.

Following a number of years of operating deficits the charity has succeeded in consolidating its activities in order that it should be able to produce small operating surpluses in the future.

The White House in Twickenham is a well-established and highly valued dual facility for eight adult learning-disabled residents, five of whom live in the care home and three in an adjoining Supportive Living Unit.

Significant legal and other costs have been incurred in the year under review and subsequently following the suicide of a resident at a home previously operated by RPFI which has since been closed.

The charity is subject to external monitoring by the CQC and it's provision is currently rated as good.

Public benefit

The Trustees have had regard to the Charity Commission guidance on public benefit in planning the activities of the charity.

Social investments

The charity is committed to providing high quality facilities for residents and has undertaken significant investment in maintaining and upgrading the property for the benefit of its residents.

ACHIEVEMENT AND PERFORMANCE

Fundraising activities

The principal sources of funding in the period were Local Authority fees and grants.

FINANCIAL REVIEW

Financial position

In common with many third sector care providers the charity has had to continue to provide adequate levels of care despite increasing restrictions in relation to the income provided to support individual residents by local authorities and the NHS. All restricted funds received in the year have been applied in accordance with the wishes and directions of the donors.The trustees consider that all remaining funds held at the year end are unrestricted. The main asset of the charity is a freehold property included at a valuation of £1.05m.

Reserves policy

It is the policy of the charity to maintain unrestricted liquid funds, which are the free reserves of the charity, at a level which equates to approximately four months unrestricted expenditure. This would provide sufficient funds to cover management and administration and support costs and to respond to emergency applications for grants, which may arise from time to time. This year it has not been possible to maintain funds at this level but this remains an aspiration for the future.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust and is constituted as a Company Limited by Guarantee as defined by the Companies Act 2006.

Organisational structure

The charity is governed by a board of trustees currently with two members who are responsible for the overall strategic direction of the charity with the day to day management being delegated to the Coordinator, Mohamed Aw Ali and other full time staff.

Training is provided for staff and employees as necessary to enable them to properly carry out their roles.

Trustees are responsible for reviewing the levels of pay of key management personnel and these are maintained at levels consistent with those of similar organisations.

Wider network

The charity is an independent entity and is not currently involved with or affiliated to any wider networks in the UK or elsewhere.

Related parties

The founder of the charity, Elly Jansen OBE and her daughter together have provided interest free loans to the charity which amounting to £367,438 (2019 £367,438).

Risk management

The trustees have examined the strategic, business and operational risks which the charity faces and confirm that the systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen any risks.

Although the trustees believe the charity generates sufficient income to cover it's routine costs it is vulnerable to cuts in the level of that income either from reduced levels of funding form local authorities or through the failure to maintain sufficiently high levels of occupancy. Finding adequate numbers of suitably qualified staff at reasonable cost may become a significant issue in the future.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

05794508 (England and Wales)

Registered Charity number

1116206

Registered office

91 Heathfield North

Twickenham

Middlesex

TW2 7QN

Trustees

Ms S P Martins - Chair of the Board

Dr S A O Gasper (appointed 1/9/20)

Miss O Oyinsan

Independent Examiner

Hartley Fowler LLP

Chartered Accountants

4th Floor Tuition House

27-37 St George's Road

Wimbledon

London

SW19 4EU

Bankers

Natwest Bank plc

50 High Street

Egham

Surrey

TW20 9EU

Solicitors

Hill Dickinson LLP

The BroadgateTower,

20 Primrose Street,

London

EC2A 2EW

Approved by order of the board of trustees on 10 November 2021 and signed on its behalf by:

Ms S P Martins - Trustee

Independent examiner's report to the trustees of Richmond Psychosocial Foundation International ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2021.

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 your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of ICAEW 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.

Jonathan Askew

ICAEW

Hartley Fowler LLP

Chartered Accountants

4th Floor Tuition House

27-37 St George's Road

Wimbledon

London

SW19 4EU

3 December 2021

2021

2020

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

3,236

13,790

17,026

350

Charitable activities

General

290,288

-

290,288

334,151

Other income

20,217

-

20,217

44,434

Total

313,741

13,790

327,531

378,935

EXPENDITURE ON

Charitable activities

General

375,807

13,790

389,597

330,085

NET INCOME/(EXPENDITURE)

(62,066

)

-

(62,066

)

48,850

RECONCILIATION OF FUNDS

Total funds brought forward

699,130

-

699,130

650,280

TOTAL FUNDS CARRIED FORWARD

637,064

-

637,064

699,130

2021

2020

Notes

£

£

FIXED ASSETS

Tangible assets

7

1,051,055

1,051,407

CURRENT ASSETS

Debtors

8

20,684

1,051

Cash at bank and in hand

72,192

118,972

92,876

120,023

CREDITORS

Amounts falling due within one year

9

(506,867

)

(472,300

)

NET CURRENT ASSETS

(413,991

)

(352,277

)

TOTAL ASSETS LESS CURRENT LIABILITIES

637,064

699,130

NET ASSETS

637,064

699,130

FUNDS

11

Unrestricted funds

637,064

699,130

TOTAL FUNDS

637,064

699,130

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2021 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each 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 financial statements, so far as applicable to the charitable company.

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

The financial statements were approved by the Board of Trustees and authorised for issue on 10 November 2021 and were signed on its behalf by:

Ms S P Martins - Trustee

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

The charity has incurred operating deficits in recent years due to restrictions in the levels of local authority funding and difficulties in maintaining occupancy levels which have left it dependent on the ongoing support of its founder and principal benefactor. Following a period of consolidation and restructuring and the conclusion of legal proceedings during the year, the trustees consider the charity to be a going concern and believe that there will be no necessity to cease or significantly curtail its activities in the forseeable future.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Income from donations or grants is recognised when the charity has entitlement to the funds, any performance conditions attached to the donations or grants have been met, it is probable that the income will be received and the amount can be measured reliably.

Care fees are recognised with reference to the period in which the service is provided and is measured at the fair value of the consideration receivable.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Charitable activities

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.

Governance costs

Governance costs include the costs of compliance with constitutional and statutory requirements, including independent examiner fees and the costs of legal advice for the trustees.

Allocation and apportionment of costs

Support costs include all those overhead costs of office, utility services and other services and costs, which are in support of the activity. They have been allocated to activity cost categories on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

not provided

Motor vehicles

-

25% on reducing balance

No depreciation has been charged on the freehold property owned by the charity as in the opinion of the trustees the residual value of the property is not considered to be significantly less that the valuation at which it was originally included in the accounts. The freehold land and building was gifted to the charity in 2010/11

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Debtors

Trade and other debtors are recognised at the settlement amount due. Prepayments are recognised at the

invoiced cost prepaid. In relation to trade debtors, a provision for impairment is made when there is objective

evidence that the charity will not be able to collect all the amounts due under the original terms of the invoice.

Creditors

Creditors are recognised when the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at the settlement amount after allowing for any trade discounts due.

Financial instruments

The charity only has financial instruments of a kind that qualify as basic financial instruments. Basic financial

instruments are initially recognised at transaction value and subsequently measured at their settlement value.

2.	SUPPORT COSTS

Governance

Finance

costs

Totals

£

£

£

General

373

94,656

95,029

Support costs, included in the above, are as follows:

Governance costs

2021

2020

Total

General

activities

£

£

Independent examiner fees

2,500

2,500

Other accounting charges

1,220

500

Legal and professional fees

90,936

19,160

94,656

22,160

3.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2021

2020

£

£

Depreciation - owned assets

352

469

4.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2021 nor for the year ended 31 March 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2021 nor for the year ended 31 March 2020.

5.	STAFF COSTS

2021

2020

£

£

Wages and salaries

153,329

162,663

Social security costs

9,757

11,955

Pension costs

1,936

1,214

Contractors and agency fees

59,561

38,147

224,583

213,979

The average monthly number of employees during the year was as follows:

2021

2020

Care staff and management

6

6

No employees received emoluments in excess of £60,000.

6.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

fund

funds

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

350

-

350

Charitable activities

General

334,151

-

334,151

Other income

44,434

-

44,434

Total

378,935

-

378,935

EXPENDITURE ON

Charitable activities

General

330,085

-

330,085

NET INCOME

48,850

-

48,850

RECONCILIATION OF FUNDS

Total funds brought forward

650,280

-

650,280

TOTAL FUNDS CARRIED FORWARD

699,130

-

699,130

7.	TANGIBLE FIXED ASSETS

Freehold

Motor

property

vehicles

Totals

£

£

£

COST

At 1 April 2020 and 31 March 2021

1,050,000

18,745

1,068,745

DEPRECIATION

At 1 April 2020

-

17,338

17,338

Charge for year

-

352

352

At 31 March 2021

-

17,690

17,690

NET BOOK VALUE

At 31 March 2021

1,050,000

1,055

1,051,055

At 31 March 2020

1,050,000

1,407

1,051,407

8.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

514

1,051

Other debtors

20,170

-

20,684

1,051

9.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade creditors

7,406

2,925

Social security and other taxes

4,712

4,196

Other creditors

491,749

459,179

Accrued expenses

3,000

6,000

506,867

472,300

10.	ANALYSIS OF NET ASSETS BETWEEN FUNDS

2021

2020

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

£

£

£

£

Fixed assets

1,051,055

-

1,051,055

1,051,407

Current assets

92,876

-

92,876

120,023

Current liabilities

(506,867

)

-

(506,867

)

(472,300

)

637,064

-

637,064

699,130

11.	MOVEMENT IN FUNDS

Net

movement

At

At 1/4/20

in funds

31/3/21

£

£

£

Unrestricted funds

General fund

699,130

(62,066

)

637,064

TOTAL FUNDS

699,130

(62,066

)

637,064

Net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

313,741

(375,807

)

(62,066

)

Restricted funds

Gifts for staff

1,100

(1,100

)

-

Infection Control Fund

12,690

(12,690

)

-

13,790

(13,790

)

-

TOTAL FUNDS

327,531

(389,597

)

(62,066

)

Comparatives for movement in funds

Net

movement

At

At 1/4/19

in funds

31/3/20

£

£

£

Unrestricted funds

General fund

650,280

48,850

699,130

TOTAL FUNDS

650,280

48,850

699,130

Comparative net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

378,935

(330,085

)

48,850

TOTAL FUNDS

378,935

(330,085

)

48,850

12.	RELATED PARTY DISCLOSURES

The founder of the charity, Elly Jansen OBE (EJ) together with her daughter have previously provided loans to the charity. At the balance sheet date amounts outstanding were £457,439 (2020 - £457,439) and are included within "other creditors".

No interest was charged on the outstanding loan balances and they are treated as repayable on demand although EJ and her daughter have advised they would not seek repayment of these balances until such time as the charity had sufficient free resources to make such payments.

During the year, EJ made donations of £500 (2020 - £nil) to the charity. The donation was to be used for the payment of staff Christmas bonuses.