RELATE_NOTTINGHAMSHIRE - Accounts

The Trustees have pleasure in presenting their report and financial statements for the year ended 31 March 2022.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's [governing document], 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 2019).

The principal activities of the company are the general provision of relationship counselling and psychosexual therapy together with life skills training, to the people of Nottinghamshire.

Achievements

The year was a difficult and very challenging one due to the pandemic still continuing for most of the year and most of the staff still working remotely. Most of our counsellors were still carrying out their sessions through Zoom with only a few of them available left for face to face counselling sessions, which we restarted towards the end of the year in response to demand.

Our half hour free counselling sessions to vulnerable people on low income which we started during the first year of the pandemic is still being offered as we recognise that it is a very valuable service, which remains very much in demand even though the funding for this service has now ended

Due to the majority of sessions now being delivered remotely we recognised that our building was no longer being utilised effectively, this has resulted in the building becoming surplus to requirements for our current needs. The building was put up for sale, a sale has been achieved and was completed in January 2023, and we will then find premises that are more suitable for the delivery of our services.

The organisation is controlled by the Board of Trustees, who meet six times per annum. It is responsible for the overall governance and strategic direction of the Charity, developing its aims, objectives and goals in accordance with the Articles of Association, legal requirements and regulatory guidelines.

The Trustees for the year are as shown below. Each Trustee is a member and a director of the company for purposes of the Companies Act. The liability of each member is limited to £1.

The Trustees of Relate Nottinghamshire have paid due regard to the Charity Commission guidance on public benefit reporting when reviewing the organisation's aims and objectives and in planning future activities. In particular, the Trustees consider how planned activities contribute to the stated aims and objectives. The aims and objectives are reviewed annually and compare the outcomes of each key activity with the benefit brought to those people identified in need of support through counselling. Consideration is given to the accessibility of its services and that its objectives for equal access are being met.

The objects for which Relate Nottinghamshire is established are:

• To educate the public concerning the benefits of secure relationships, in order to improve the emotional, sexual and spiritual well-being of individuals which is derived from committed relationships;

• To seek to enhance the good health, both mental and physical of adults and children by:

- Increasing public awareness of the benefit of committed couple relationships, marriage and family life

- Working to prevent poverty, hardship and distress caused by the breakdown of such relationships.

• To provide counselling, support, education, and relief to adults and/or children in relation to any aspect of contemporary life or work which:

- May prejudice their physical or mental well being

- Influence either directly or indirectly, their present or future family or couple relationship.

• To advance citizenship and community development

• To relieve those in need by reason of youth, age, ill-health, disability, financial hardship or other disadvantage

• To promote research into all of the above objects and to make the results available to the public.

Statement of Common Purpose

Relate's role is to help people build better couple relationships by:

• Enhancing the quality of couple, individual and parental and family relationships.

• Helping relationships and marriage withstand the pressures leading to breakdown.

• Limiting the damage which commonly accompanies failing relationships, separation and divorce and increasing the prospect of subsequent relationships succeeding in families, communities and workplaces.

Relate aims to deliver its services with cultural sensitivity and without discrimination. It believes that:

• An individual's physical well-being and emotional and mental health benefit from committed relationships.

• Children thrive in families where relationships are free from destructive conflict.

• People gain from an understanding of their sexuality.

• Expressing clear commitment is a helpful contribution to healthy and secure relationships.

Activities

Relate Nottinghamshire is a recognised expert provider of relationship counselling and its mission is to help people improve their relationships through quality counselling and life skills education. It is therefore committed both to maintaining the highest standards in service delivery and to being responsive to the needs of users in developing its services. The services available to clients in Nottinghamshire include:-

• Relationship Counselling: Helping couples and individuals to resolve issues arising from their relationships. Our counsellors help people to discuss feelings, attitudes and expectations, and offer assistance with communication and problem solving. We aim to empower our clients by increasing their understanding so that they can go on to make choices about how they manage their relationships.

• Sex Therapy: An assessment and treatment programme which enables our clients to address the physical, emotional and psychological issues associated with sex. As the only national provider of sex therapy, we also work with people who have problems with their sex lives due to poor health or disability.

• Family Counselling: To help family members in resolving difficulties and concerns in their relationships with one another. We support clients by increasing understanding of each other's needs and by improving communication, both within the couple relationship and across generations.

• Children and young people's services: Helps children and young people explore and develop coping strategies for issues such as family breakdown, bullying and peer relationships, bereavement, the formation of new families or the absence of a family member in their life. Relate is the largest UK provider of counselling support for children and young people, with over 20 years of experience in this area.

• Education and learning: To provide people with the knowledge and skills needed for personal and professional development. We offer a wide range of workshops and courses for couples, individuals, parents and young people. This is a major part of our preventative work to ensure that we are helping people to boost or maintain their relationships as opposed to just helping when things get rough.

Our core work also subsumes:-

• 'One off' counselling sessions

• Same Sex counselling

• Telephone counselling

Counselling services are delivered to members of the public at Relate premises and outposts, when they are asked to pay what they can reasonably afford toward the cost of counselling. There is a bursary fund available to contribute to the cost of counselling of those people in poverty or of limited financial resources. Where we are funded to deliver a service to a particular community, working in partnership with other organisations, then counselling is free at the point of delivery. We also provide counselling under contract for some local employers.

Demand for our services comes mainly through self-referral, along with signposting from General Practitioners and other agencies. Clients are given an initial assessment of their needs and whether our service is appropriate for them.

The organisation is fully committed to the active promotion of equal opportunities in its employment practices, in the delivery of its services and all its other activities. The organisation's work is based upon its Statement of Common Purpose, which includes the acceptance that in a diverse society its concept of marriage and other committed adult relationships, must encompass differing cultural understandings. The services delivered are not dependent on any one theoretical or professional view of marriage, family or sexual relationships. Nor, since its work is for the benefit of the whole community, can it be committed to any one sectional, social, political, cultural or religious view of marriage.

Summary Financial Report

Full details of the financial activities of the charity are available separately and this account is a very brief description of the results.

The current financial situation has continued to be challenging due to the Covid pandemic still continuing most of the year and there was a lack of suitable grants that we were able to tap into and this has affected our finances along with a lack of counsellors to deliver some of our sessions and also the way our services are delivered which have moved pre-dominantly to Zoom rather than face to face.

Values are given to the nearest thousand. The overall result for the year 2021/22 was a Loss of £33k compared to a surplus of £11K in 2020/2021. This resulted in a decrease in net assets to £260k for the year against £293k at the beginning of the year. This includes the value of the premises in Nottingham of £206k.

Expenditure for 2021/2022 was £220k compared with £214k in 2020/21. The increase in expenditure was due to increased operational cost.

Income was £188k compared with £227k in the previous year. Client Income decreased further to £149k compared with £156k in 2020/2021 The Grants and donations also decreased to £34k compared to previous year of £54k. The decrease in income from these two sources has been the major contributors to the overall deficit that has resulted at the end of the financial year.

The charity operates a Client Relationship Management System which records appointments, as well as the related fee due to the charity for the appointment.  In the past, this system has not been incorporated into the accounting records. Going forwards, a method has been arrived at which will enable this system to be included, which will improve control over income.

Risk Management

The Trustees have had regular meetings throughout the year to identify and deal with any risks to the charity by the implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise.

This work has identified that the financial sustainability is the major financial risk for the charity and has worked on applying for new funding to ease this. A key element in the management of financial risk is a regular review of available liquid funds to make sure we have sufficient working capital to meet all our financial obligations.

Attention has also been focused on non-financial risks i.e. fire, health and safety. These risks are managed by ensuring accreditation is up to date, having robust policies and procedures in place, and regular awareness training for staff working in these operational areas.

Reserves Policy

The Trustees wish to maintain a level of reserves which will enable the charity to meet its financial obligations should there be a temporary reduction in planned income. The reserves policy is reviewed annually and Trustees agreed to set the level of reserves needed at three month's running costs. They confirm that the reserves held at 31 March 2022 were adequate for this purpose.

Recruitment and Appointment of Executive Committee

The directors/Trustees under the Company's Articles are known as members of the Executive Committee. Under the requirements of the Memorandum and Articles of Association the members of the Executive Committee are elected to serve for a period of one year but are eligible for re-election at the Annual General Meeting. In addition, the Executive Committee has the power to elect members in the period between Annual General Meetings for the purpose of filling vacancies, and to co-opt members.

All previously elected members of the Executive Committee offer themselves for re-election.

The Executive Committee seeks to ensure that a diversity of social/cultural backgrounds and a broad skill mix are represented among its members. Business, medical, legal and IT are represented as well as a wide range of experience in social care field and in public service. Each member of the Executive Committee is asked to take responsibility for a particular 'area of interest' ranging from fundraising, to health and safety, equality and diversity etc. In the event of particular skills being lost due to retirement individuals are approached to offer themselves for election to the Executive Committee.

Trustee induction and training

Potential new directors/Trustees will in the first instance be invited to a meeting with the Chair, and will subsequently meet with the Centre Manager at the Relate Nottinghamshire offices. This is an opportunity to find out more about the organisation, the challenges it faces, its expectations of Trustees, and the opportunities for becoming involved in its work. The prospective member is provided with a copy of the Trustee Induction Pack which provides a wide variety of information including:-

• The main documents which set out the operational framework of the charity including the Memorandum and Articles.

• Resourcing and current financial position as set out in the latest published accounts.

• Future plans and objectives.

• Information about the responsibilities of charity Trustees, and Job Description.

The applicant is usually asked to attend three meetings of the Executive Committee before it is mutually decided whether to proceed with the appointment to a directorship. During this period a register of interests and CRB check is also completed.

COVID-19

Relate Nottinghamshire continued to abide by all the different Government Covid-19 laws and regulations. But because of the layout of the building we occupy we continued with our policy of nearly all counselling sessions being done on-line.

The exception was when some of the Government restrictions were lifted two of our Counsellors started a few face to face sessions in a controlled safe environment and in rooms on different floors of the building.

The CEO and Administration staff were organised to work full or part time from home to also reduce the number of staff within the building. And with a replacement telephone system that enables calls to be taken without the need to be present in the building we were able to maintain a service with our clients.

The Trustees' report was approved by the Board of Trustees.

I report to the charity Trustees on my examination of the financial statements of Relate Nottinghamshire (the charity) for the year ended 31 March 2022.

As the charity Trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity 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 the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

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 that in any material respect:

accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or

the financial statements do not accord with those records; or

the financial statements 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

the financial statements 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 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 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 2022.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

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.

Relate Nottinghamshire is a private company limited by guarantee incorporated in England and Wales. The registered office is 96 Mansfield Road, Nottingham, NG1 3HD.

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

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. Income is reducing, however so the charity plans to sell the freehold property at a significant value to enable operations to continue. 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.

Designated funds comprise unrestricted funds which have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

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.

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

• Voluntary income includes grants from local government accounted for on a receivable basis. Donations and grants from private trusts are accounted for when received but will be deferred where the funding relates to future periods. Cash received under contracts relating to future periods is also deferred.

• Counselling, Education and Training income is accounted for on a receivable basis. Counselling income from impecunious clients is subsidised up to a level of £20 per hour by transfer from restricted funds given for this purpose or from designated funds earmarked by the Trustees.

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates:

• Publicity expenditure is incurred to raise visibility and awareness of services provided and is therefore treated as part of charitable expenditure rather than fund raising.

• Management and administration charges are allocated in the financial statements between charitable activities and governance on the basis of estimated time spent by management and support staff.

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 the statement of financial activities.

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

The company participates in a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The amount charged as expenditure represents the contributions payable to the scheme in respect of the accounting period.

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Unrestricted funds

Unrestricted funds

Counselling

Education and Training

Mediation

EDMR

Government support grants

Staff training

Rent, rates and water

Management charges

Insurance

Light and heat

Cleaning

Repairs and maintenance

Printing, postage and stationery

Advertising and recruitment

Telephone

Computer running costs

Motor running expenses

Bank charges

Sundry expenses

Subscriptions

Professional fees

One of the Trustees (or any persons connected with them) received any remuneration during the year and reimbursed expenses amounted to £91.20 (2021: £nil).

The average monthly number of employees during the year was:

The movement can be analysed as follows:

The Bursary Fund represents the balance of donations received towards funding the cost of counselling for those less able to afford the full cost of fees.

There were no disclosable related party transactions during the year (2021 - none).