Our financial year to 31st March 2023 has been challenging for Chapter just as it has for many sectors of the UK economy and for many people struggling to make ends meet through a period of high inflation and low wage growth. The ongoing staffing and funding crises in the NHS and in Social Care are making it harder for people to access the support they need. Our role in providing mental health services to our local community across Cheshire West and Chester has never been more critical or more valued since our inception back in 1991. I am pleased to be able to say that Chapter has seldom been in a stronger position to meet these needs.
During the early part of the 2022-23 financial year, we recognised a need to review and revise our strategy, to further de-risk our finances and to focus as much resource as possible on front-end services to best meet the growing needs of our service users. This required some difficult choices and the reduction in our expense base year on year in these latest accounts is due to some tough decisions to reduce staffing in support functions that were not service user facing. These actions allowed Chapter to report a surplus of £6k in our accounts compared to a prior year deficit of £57k.
Chapter has a fantastic team of dedicated, professional, and highly qualified staff, and our newly appointed CEO, Jolene Weaver, has shown exceptional leadership through all the challenges presented by the changes we have made and the operating environment in which we have worked. I can speak for all Trustees in saying we are humbled by their commitment to Chapter and the way they always go the extra mile for our service users. I would also like to recognise the work of our volunteers who benefit from the extensive training we provide and in return give us additional capacity to deliver more services. Our relationship with the University of Chester Psychology Department has been a particularly good source of high-quality volunteers and we hope to build on this in future
We have benefitted from continued strong support from our funding partners during the last year including the addition of some new funders including the National Lottery. Our shared values and their recognition of the effectiveness of the services we provide has made such a big difference to the work we do currently and to the plans we have made for the future. It would be very difficult for Chapter to exist without this support, and we remain committed to demonstrating the value of the work we do and our gratitude for the confidence placed in us
We continue to offer our four core services - Aspire, Connect, RE:SET and Belong. There has been a continued high level of referrals over the last year, and we have been able to engage with more people this year compared to last. The pathways of support we provide empowers individuals and helps to support both them and their families. The ongoing service feedback we receive gives us a very high level of confidence in the effectiveness of our programmes.
We have also continued to make good use of The Haven. We have turned this abandoned piece of wasteland in Ellesmere Port into a valuable community asset that provides secure space for gardening activities and workshops in the open air directly linked to mental health support. We have selectively opened up access to The Haven to others providing mental health services including The Wilderness Tribe who use bushcraft techniques in their nature driven mental health programmes.
We held our AGM in October 2022 when Sharon Shelbourne stepped down as Chair and as a Trustee and I was formerly appointed as her successor. I would like to record the thanks of everyone involved in Chapter for the guidance and support Sharon provided over a number of years including through the challenge of the pandemic. Having joined as a Trustee in May 2022 I was delighted and honoured to be asked to take on the role of Chair and I am very lucky to have such a strong Board of Trustees alongside me. We also welcomed Joanne Hadley as a new Trustee in September and her legal background complements the excellent range of capabilities we can call on from our Board.
Chapter will continue to engage effectively with the communities we serve, seek to better understand their evolving needs and to adapt our services to meet those needs with an absolute focus on quality and effectiveness. We have an ability to act quickly and flexibly to adapt and extend into new areas of increased need or more specialised services. Our work is dependent on the generosity of our supporters and the exceptional capabilities of our staff. I could not thank either of them enough for what they allow Chapter to deliver. We have a clear focus on what we want to achieve going forward, and strong foundations on which to build for continuing success in the future.
The Trustees present their annual report and financial statements for the year ended 31 March 2023.
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).
All our work is directed at achieving five outcomes:
helping people to promote positive mental health
supporting people to better manage their mental health
build confidence, life skills and greater self-esteem
supporting people to work and be able to live an independent life
enabling people to overcome isolation and be part of a community.
Public Benefit
All charities are legally required to have aims that provide public benefit. The Charity Commission in its 'Charities and Public Benefit' Guidance states that an organisation's aims are for the public benefit. Firstly, there must be an identifiable benefit, and secondly, that the benefit must be to the public or a section of the public.
The Trustees confirm that they have referred to the guidance and are confident that Chapter meets the criteria. For example:
the objects of the Charity in our Memorandum and Articles of Association are defined as Public Benefit
our progress, including the number of beneficiaries, is reported publicly in the Trustees' Annual Report
Chapter accepts referrals from statutory agencies, such as local authorities and NHS trusts, as well as local third sector organisations, who support people affected by mental ill-health but do not provide the same services as Chapter
The core of Chapter's services are free at the point of delivery to its service users, except in certain instances such as the provision of training courses to corporate/private clients.
Activities
Chapter continues to provide a variety of services and activities to promote mental health recovery. These include:
Aspire - One-to-one mental health coaching to support people to develop wellbeing plans and set goals to aid their recovery. Motivational, emotional and positive encouragement remain an integral part of this work.
Belong - Activities that bring people together around a shared interest to build confidence, meet new people and try new things.
Connect – Listening service providing low level mental health support delivered by trained volunteers.
RE: SET - Workshops promoting positive mental health, supporting people to develop life skills that aid their mental health recovery. Peer support is a particularly successful aspect of this work.
The Haven – A community wellbeing garden in Ellesmere Port open to the local community as well as voluntary sector groups to promote positive mental health.
Corporate Services - Mental health training in the workplace to promote mental health at work. This includes bespoke training packages as well as recognised qualifications such as Mental Health First Aid and Youth Mental Health First Aid.
Partnerships
Chapter continues to have partnerships with other organisations in the business, statutory and voluntary sectors. We also provide some services as part of paid contracts such as delivering mental health training. Chapter actively seeks joint working opportunities with other third sector organisations as we recognise the added value this brings to our services and those accessing our services. In 2022/23 we delivered partnership projects to promote positive mental health outcomes in conjunction with Koala North West, Poets in Paint and Platform for Life.
In 2022/23 Chapter provided a service to 301 unique individuals with a total of 2,122 attendances recorded at 1,238 different sessions.
2022/23 saw a continued high demand for services with over 400 referrals for support. We saw a significant increase in the numbers of people self-identifying for support with self-referrals accounting for almost 35% of new contacts.
We continue to work with a diverse range of people and have seen an increase in the number of referrals for people living with autism. Our person-centred approach ensures that we can meet the needs of our diverse population working with people as a whole, addressing their mental ill health alongside other needs. We are working with people who are facing increasingly complex issues, managing their mental health whilst facing issues such as housing, finances and physical ill health.
We have expanded our work in Cheshire East from offering just the Connect telephone service in 2021, to a face to face offer including RE:SET courses and a Belong peer support group.
Our team (both paid and voluntary) has undertaken a wide range of specialist training to ensure that we continue to offer a high quality service to those who access our services. This has included Peer Support Worker training and an extension of our skills in young people’s mental health through Youth Mental Health First Aid.
In 2022 our Chair was recognised locally as ‘Trustee of the Year’ achieving external recognition for the hard work and dedication she had shown to Chapter for many years.
We continue to monitor our policy framework to ensure we are meeting all statutory requirements, managing risks to the organisations and supporting our team to deliver a range of high quality services meeting the needs of people living with mental ill health in Cheshire.
At the beginning of 2022/23 Chapter encountered some financial challenges which required swift decisive action from the board. As an organisation, we faced these challenges, putting service delivery at the forefront of the organisation and undertaking an organisational restructure to ensure our sustainability. As we look forward to 2023/24 we are confident that our financial planning and robust risk management procedures ensure that we are in the best position to deliver our vision of positive mental health to a wider range of service users.
Chapter maintains adequate controls over the assets of the Charity, which are regularly reviewed by the CEO, Treasurer and the Board of Trustees. The Charity has restricted and unrestricted funds as described in the accounts.
The principal activity of the company during the year was to promote the mental health and wellbeing of individuals, communities, and workplaces.
We continue to work to diversify our income streams including securing funding from contracts with statutory agencies such as the local authority and health partners, securing donations from the wider community, delivering training to private businesses and through grants from charitable trusts.
Financial reserve strategy
The Company's Reserve Strategy is reviewed annually. Wherever possible, reserves are provided consistent with the ongoing objectives of the Charity so that negative fluctuations in funding do not have an immediate adverse impact on clients or staff. In addition, reserves are provided to make good any deficits from authorised projects.
Our objective is to maintain reserves representing at least two months running costs plus closure costs. To facilitate this, Chapter seeks to secure restricted as well as unrestricted income. The financial position is reported monthly, including the reserves calculations. The Treasurer and CEO, supported by the Finance Officer meet regularly to review the management accounts which includes monitoring cashflow and reserves.
Financial risk
As a small charity Chapter still relies heavily on short term grant funding – this can make long term planning more difficult, and cause uncertainty amongst team members which can pose a risk to the organisation. We continue to work to develop our corporate services offer to increase our earned income. We are also working to build relationships in the community to maximise donations from members of the public who have an interest in our work.
At the end of 2022/23 we secured a three-year grant from the National Lottery Fund which will provide a solid base enabling us to develop new services including specialist support groups.
Risk management
The Board of Trustees regularly reviews the major risks to which the Charity is exposed through regular reports from the CEO. Wherever possible, processes and procedures are in place to mitigate these risks. A policy framework helps to ensure risks are monitored, managed, and mitigated as far as is reasonably practical. The risks to external funding are kept under frequent examination so that, when required, new and diversified funding sources can be investigated and, if necessary, the activities of the Charity can be modified.
Internal financial risks are minimised by procedures for authorisation of all transactions.
Projects are monitored and assessed regularly to ensure consistent quality across all operational aspects of the Charity. Training is provided to staff and volunteers to ensure that safeguarding and safe working practices for staff, volunteers and service-users are central to all delivered activities.
Chapter has links and access to professionals in the field of Health & Safety and HR who can provide advice on specific areas of concern. Chapter also has a Confidentiality Policy that all trustees, volunteers and staff are required to sign, and all data held is assessed to be secure and meet all Data Protection Act and GDPR requirements.
Each year the Board of Trustees reviews Chapter’s strategic plan and sets strategic priorities and actions for the year ahead.
The plans for 2023/24:
Develop more specialist provision, working to develop groups around communities of interest for example a Men’s group and a Rural group
Establish a clear model for Peer Support at Chapter
Build upon our current ‘service user involvement’ model establishing clear processes for engagement
Improve how we monitor and report on service and project delivery, better capturingand communicating our social value.
Chapter (West Cheshire) Limited is a registered charity (No. 1072395) and as a company limited by guarantee (No. 3294547). It is governed by its Memorandum and Articles of Association dated 19th December 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:
Appointment of trustees
Trustees are expected to:
support the organisation and its aims
act as ambassadors for the organisation
demonstrate sound common sense and a breadth of experience
declare any potential conflict of interest
undertake work on an appropriate committee
attend Board of Trustees meetings
help with specific projects as required
be legally able to carry out their duties of Trustee.
Trustees are appointed by the Board of Trustees. All new Trustees are recruited to complement the skills of existing Trustees and inducted into the work of Chapter and their roles as Trustees. Trustees are required to meet minimum levels of safeguarding training and sign a confidentiality contract.
Management
The activities of Chapter are overseen by a Board of Trustees which at the outset of 2022/23 consisted of six Trustees.
The Board of Trustees meets every eight weeks to receive reports from the Chief Executive Officer to effect strategic and administrative decisions. Chapter does not operate a sub-committee structure however, the treasurer meets with the Chief Executive Officer and Finance Officer on a regular basis to review financial performance. At each Board of Trustees’ meeting the Chief Executive Officer reports on new opportunities, serious incidents, and any safeguarding or health and safety issues. The Chief Executive Officer also presents performance against Key Performance Indicators statistics on current activities and reports on progress against the targets associated with specific grants and contracts. Presentations by members of staff on different aspects of the work of Chapter may also be periodically brought to Board of Trustees’ meetings.
Structure
The Trustees are also Directors of the Charitable Company for the purposes of the Companies Act. The financial statements have been prepared in accordance with the accounting policies set out in the notes 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).
Mitchell Charlesworth was appointed as Independent Examiner for 2022/23 and a resolution will be put before the Annual General Meeting regarding future Independent Examiner.
The Trustees report was approved by the Board of Trustees.
I report to the Trustees on my examination of the financial statements of Chapter (West Cheshire) Limited (the Charity) for the year ended 31 March 2023.
As the 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.
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).
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Chapter (West Cheshire) Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Stanlaw Abbey Business Centre, Dover Drive, Ellesmere Port, Cheshire, CH65 9BF.
The financial statements have been prepared in accordance 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 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.
Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Expenditure is recognised when it is incurred and is recorded gross of related income on the following bases:
Charitable expenditure comprises direct expenditure including direct staff costs attributable to its activities.
Governance costs comprise those incurred as a result of constitutional and statutory requirements.
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.
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.
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 Receivable and Contracts
Charitable Income
Charitable Income
Charitable Expenditure
Charitable Expenditure
Service-user support costs
Business expenses
WCMHF expenditure
General expenses
AGM and Trustee meeting costs
The average monthly number of employees during the year was:
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
Albert Gubay - Aspire wellbeing coach salaries
Big Lottery (Awards for All) - Belong activity sessions
Big Lottery (Heritage) - Historical garden trips
Cheshire Community Foundation (Improving Outcomes fund) - Aspire programme
Cheshire East Council - Connect programme
Cheshire West & Chester Council (various funds) - Aspire programme including Home Support
Cheshire West Crowdfund (Spacehive) - Aspire programme and Belong activity sessions
Chester Bluecoat - Xmas social activity
Hemby Charitable Trust - Belong activity sessions in Neston area
Masonic Charitable Trust - Belong activity sessions
Morrison's Foundation - Belong arts and crafts sessions
NHS Education - Wellbeing coach peer support training
NHS Cheshire CCG - West Cheshire Mental Health Forum - a community consultation group, of which Chapter manage the book-keeping
The Prince of Wales Fund - RESET sessions
The Robert Clutterbuck Charitable Trust - Aspire programme
Sanctuary Group - Belong board games sessions
Severn Trent - Belong allotment
The Chrimes Family Charitable Trust - Aspire programme
Vivo Care Choices Ltd - The Haven community greenspace
WC&NW Chamber of Commerce - Wellbeing coach training
Westminster Foundation - BUMP programme supporting new and expectant parents
The remuneration of key management personnel, who is the Chief Executive Officer, is as follows.
The Charity had no debt during the year.