The Trustees present their annual report and financial statements for the year ended 31 March 2024.
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 charitable company's [governing document], the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) 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)".
Since the Company qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
The charity's objectives, or 'objects' as stated in its constitution are:
- To advance health by alleviating the emotional distress of clients suffering from a variety of mental health issues, such as depression, anxiety and stress
- To save lives by offering hope to those clients who indicate suicidal intent.
-To promote equality and social inclusion by offering a service free at the point of need.
-To deliver a high standard of counselling within ethical boundaries, demonstrating compassion, and seeking to bring hope, comfort and encouragement to all clients.
Insight seeks to meet these objectives by providing a professional counselling service to people throughout Tayside, provided by trained counsellors who have recognised qualifications, and who are managed by the Service Manager. To this end, the Board of Management will faciliatate the work of the counsellors, provide premises, and all the necessary salaried staff, and publicise the Service, using such means as it shall from time to time decide.
Accommodation and Facilities
In May 2023, Peninsula provided a Health & Safety (H&S) report following a visit to our Dundee office. They provided a quote to add H&S cover to our existing agreement however the board made the decision not to move ahead with this additional cost due to funding uncertainty. Office Manager, Sandie Dawson, started communication with Brenda Douglas, the H&S representative for DVVA to ensure we were compliant.
In June 2023 the contract to provide counselling for children/young people at Craigie High School finished. One of the counsellors who had previously been providing service from Abbey Health Centre resigned, Georgie Evans started taking clients on to maintain provision of daytime face-to-face (F2F) service in Arbroath. Julia Charles continues to work from this location too.
In August 2023, the office manager secured a discounted rate with EE for mobile phone contracts, further cutting costs.
In September 2023, we were notified that we would be unable to continue providing an evening F2F service from Arbroath Infirmary. Management were unable to find similar premises in Arbroath, with no additional cost.
In January 2024, following further communication with EE, the office manager closed several under-utilised mobile phone contracts, saving around £100 per month.
The demand for the provision of F2F sessions has continued to increase. Despite the challenges to secure accommodation, we were able to offer F2F appointments in Dundee (DVVA and Craigie High School), Arbroath (Infirmary and Abbey Health Centre) and Montrose (Links Health Centre). Student counsellors continue to work from DVVA.
The Trustees have paid due regard to guidance issued by OSCR in deciding what activities the charitable company should undertake.
Going Concern
The next financial period will be challenging with major changes to our core funding provision with NHS funding being cut in the next financial year. The Board, however, are confident that the staff and counsellors will rise to the challenge and Insight Counselling will continue to provide a professional service to our clients in Dundee and Angus by exploring other funding options including grants, sponsorship from local businesses and crowdfunding. We currently have a number of funding applications underway and successfully obtained a large grant from the Tayside Charitable Fund for the next financial year.
In June 2023 the Service Level Agreement and contract with Angus Council regarding the “Angus Adults Bereaved by Suicide” (AABBS) service was updated. This included the amount charged per session increasing to £45. We continued to offer this service, receiving around 30 referrals during this period, an increase on 2022-23. Quarterly monitoring forms were completed by management.
In March 2024, CPD was provided to our counsellors, at no cost, by Enable on Neurodiversity.
Our core funding from the NHS was received in 3 payments throughout the financial year.
This year we were able to increase the amount of student placements. We had 4 student counsellors come on board in July with another 2 commencing their placement in August.
The Douglas Youth Counselling & Wellbeing Service (DYCWS) work continued throughout the year, with counsellors working from Craigie High School, DVVA and remotely. However, the counsellor who was offering sessions from Craigie High School stopped in June 2023, in line with the school year. There has been a notable decrease in the amount of children and young people referring which has been attributed to the provision of counselling in schools by the Government. The funding for this project has ceased and the remaining funds are being run down.
Review of Activities
911 referrals were received during this period, a decrease of 651 from the previous year. This can be attributed to the waiting list closing periodically throughout the year.
Insight remains a hybrid service, continuing to offer both in-person and virtual sessions to clients.
AABBS – ongoing discussions regarding the contract for providing this service finalised in June 2023. Payments changed to monthly, allowing updates to be given on service provision regularly. A contract extension was signed in January 2024 to continue offering the service until September 2024 however, the contract would then open for tender.
Decision made to close waiting list on 1st August 2023 to manage clients waiting times but also mitigate effects of funding uncertainty. This would allow us to run the service down, should this be necessary. Reopened in October 2023 as funding was received from NHS.
The waiting list was then closed for Christmas break on 8th December 2023. Agreed to continue monitoring on a regular basis to ensure we keep waiting times to a minimum.
Staff
Fiona Russell signed off on long-term sick leave from February 2024. Kate Downs returned on a voluntary basis to help with admin cover.
Counsellor numbers fluctuated between 19 and 25. Throughout the year, we had up to 7 student counsellors on placement. Over the year, 3 counsellors on placement continued working with us post-qualification.
Staff & counsellors were made aware of potential closure in mid-August due to funding concerns.
The Board of Management has established a policy whereby the unrestricted funds ("the free reserves") held by the charity should amount to 6 months of the resources expended, which equates to £97,976 in general funds. At 31 March 2024, free reserves amounted to £163,345 (2023 - £104,329).
The Trustees have assessed the major risks to which the Company is exposed, in particular those related to the operations and finances of the Company, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
Ongoing difficulties in securing MHOF funding throughout this period. Funding was confirmed and payments of £75,000 received in October & December 2023 and March 2024.
Unsuccessful funding bid to Community Wellbeing Fund for £25,000.
Regular meetings with Jenny McCarthy of Just Enterprise to brainstorm alternative funding ideas. Maryam Deeni and Aled Bartley-Jones of DVVA provided their assistance. Contact was made with Scottish Government and the local councils throughout the year, with updated position statements provided.
Applied to Tayside Charitable fund in January 2024 with panel taking place in March 2024.
Insight Counselling is registered as a charitable company limited by guarantee incorporated on 22 March 2008. Its Memorandum and Articles of Association (i.e. its constitution) are posted on it website www.insightcanhelp.co.uk, where they can be viewed and downloaded.
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:
Professional decisions relating to the counselling service provided are taken by the Clinical Manager, and adhere to the conditions of the code of ethics of the British Association for Counselling and Psychotherapy. These decisions are brought to the Board of Management for comment and discussion, particularly when there are financial implications. The Board of Management decides on all matters affecting the funds of the Service, used in pursuance of its objectives.
All the counsellors are trained or are on student placement as part of a training course. New counsellors are put through a local induction by the Clinical & Office Managers, sign a contract, and serve a probationary period for six months.
Receptionists are given an induction course by the Office Manager and fellow Administrators. Refresher training is given as required.
The governance of the service is the responsibility of the Board of Management. The day-to-day management of the service is the responsibility of the Clinical and Office Managers.
A third of the non-executive board members (those longest in post at the time) stand down at the AGM and are eligible for re-election.
Members of the Board of Management are selected from persons whose knowledge and experience are appropriate to the objectives of Insight Counselling. Board Members are inducted on appointment and receive training in the roles and responsibilities of their position. Legal training is also provided.
The current development plan recommends the development of an induction package for new Board members.
The Trustees report was approved by the Board of Trustees.
I report on the financial statements of the charitable company for the year ended 31 March 2024, which are set out on pages 6 to 17.
The charitable company’s Trustees, who are also the directors of Insight Counselling for the purposes of company law, are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investments (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The Trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the 2006 Accounts Regulations does not apply. It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Act and to state whether particular matters have come to my attention.
My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. 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 seeks explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the financial statements.
In connection with my examination, no matter has come to my attention:
to keep accounting records in accordance with section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;
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.
Insight Counselling is a private company limited by guarantee incorporated in Scotland. The registered office is Number Ten, 10 Constitution Road, Dundee, DD1 1LL.
The financial statements have been prepared in accordance with the charitable company's governing document, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) 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 charitable company is a Public Benefit Entity as defined by FRS 102.
The charitable company has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. 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 charitable company 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.
The next financial period will be challenging with major changes to Insight Counselling's core funding provision with NHS funding being cut in the next financial year. The Board, however, are confident that the staff and counsellors will rise to the challenge and Insight Counselling will continue to provide a professional service to its clients in Dundee and Angus by exploring other funding options including grants, sponsorship from local businesses and crowdfunding. They currently have a number of funding applications underway and successfully obtained a large grant from the Tayside Charitable Fund for the next financial year.
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 or grantors 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 charitable company 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.
Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Income tax recoverable is in relation to investment income is recognised at the time the investment income is receivable.
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of service.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
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 allocated on the portion of the asset’s use.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
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 charitable company 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 charitable company 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 charitable company's balance sheet when the charitable company 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.
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 charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
The Company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Company to the fund in respect of the year.
In the application of the charitable company’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.
Staff wages and other overhead costs are apportioned over the projects on a percentage basis based on staff time
Included in accountancy costs are independent examinations fees in the year of £2,590 ( 2023 - £2,448)
The average monthly number of employees during the year was:
No employee received remuneration amounting to more than £60,000 in either year.
The Board of Directors are considered to be the Key Management of the organisation.
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
Deferred income is included in the financial statements as follows:
Resources deferred in the year relates to grant income from Northwood Trust for 2024/25 received March 2024.
Deferred income released in the year relates to grant income from Northwood Trust for 2023/24 received March 2023.
The charitable company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charitable company in an independently administered fund.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
Purpose of restricted funds:
The Big Lottery Douglas YP Wellbeing was granted to provide a 3 year community based youth counselling and well being peer education programme for young people.
The Angus PBS grant was granted to provide counselling to adults bereaved by suicide.
The Community Recovery Fund was granted for toolboxes to give to clients waiting on face to face appointments.
The charity operates a defined contribution scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £1,745 (2023 - £1,345)
There were no disclosable related party transactions during the year (2023 - none).