The trustees present their annual report and financial statements for the year ended 31 March 2025.
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 Memorandum and Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (issued in October 2019).
The charity was established to benefit the community, particularly Leicestershire and Rutland, by promoting the protection, preservation and education of good health.
Specifically, the charity seeks to relieve and prevent suffering caused by mental or physical ill-health, or by social or economic circumstances by providing and developing a confidential counselling service in addition to education, training and support for counselling as well as developing counselling resources in any charitable manner determined by the trustees.
The main aims for the year continued to be the provision of counselling based at the charity's central office at Victoria Park in Leicester together with the operation of satellites in the county whenever possible.
The trustees have considered the general guidance issued by the Charity Commission on public benefit and have ensured that the charity's programmes are undertaken in line with the charitable objects and aims as set out herein.
This year has seen service delivery increase by a third compared to the last reporting period, highlighting the success of several initiatives focused on expanding the service provision to meet growing demand for mental health support across Leicester, Leicestershire and Rutland. Extending the Centre’s opening hours to a second evening per week has accommodated more counsellors and clients and made better use of existing resources to reach more individuals in need of support. The proactive recruitment of new assessors, supported by specific grant funds, has built a larger team of assessors. Together, this team offer significantly more assessment appointments each month, making support more readily accessible and enabling more individuals to access the waiting list. Tireless efforts to recruit and induct new volunteer counsellors has maintained a steady team of trainees and qualified practitioners, and the ongoing appeal of the qualified counsellor payment scheme has seen our qualified and experienced counsellors take on larger caseloads of some of the more complex presentations that we are now seeing accessing our service. A small stream of remote counselling has also continued, reaching individuals who face barriers to accessing in-person support. The commitment of the whole team means that 77% of our clients are engaged in weekly counselling support within 0-5 months of their initial assessment appointment; a standout achievement in the current mental health climate where wait times in equivalent services can exceed three years.
The Centre has maintained its excellent relationship with the City Council and again succeeded in achieving renewed funding following an in-depth Health Equity Audit, which is secured until June 2028. A second year of funding from NHS England’s Getting Help in Neighbourhoods has also contributed to the achievements throughout this year.
The attached financial statements demonstrate a level of reserves at the end of the year which the trustees consider to be sufficient to secure the funding of the Centre and enable client work to be completed, given that it is necessary to allow up to one year of counselling for each client. The Statement of Financial Activities shows net income of £8,488 (2024 - net expenditure of £2,246) and at 31st March 2025 the total reserves of the charity were £217,125 (2024 - £208,637).
The Leicester Counselling Centre is a long-standing charity with some established income sources. It benefits from a healthy level of unrestricted funds, which have accumulated gradually over a number of years. However, it is also somewhat dependent on a high-risk source of income from Leicester City Council, which may not be renewed in the future. The operational significance of its committed expenditure is also high, meaning that loss of income will have a significant impact on the Centre’s day to day activities. The Trustees have therefore introduced a formal Reserves Policy that currently designates £115,500 (approximately 9 months service delivery costs and staff redundancy) to mitigate exposure to the major risks. A further £25,000 has been designated for potential dilapidations work to the building in accordance with the requirements of the lessor, Leicester City Council.
At the end of the year, restricted funds were £nil (2024 - £20,000) and free reserves were £76,625 (2024 - £48,137). All such reserves are held for the furtherance of the charity's objects as set out in this report.
The principal sources of funds remained voluntary contributions donated by clients and local authority grants.
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Recent recruitment onto the Board of Trustees brings a strong combined skills set, contributing ideas and expertise that are already informing service development. The Centre looks to build upon its partnership working to reach underrepresented groups within our current client base, including minority ethnic groups, men, and older adults. This forms part of a wider project to develop an Equality, Diversity and Inclusion Strategy, to cultivate a positive environment and become better aligned with the diverse needs of all those who engage with the Centre. Exploring ideas to diversify income, including strengthening donor communication and encouraging sustainable giving, will also be a key focus moving forward.
The charity is a company limited by guarantee with no share capital, incorporated on 23 July 1997 and is governed by its Memorandum and Articles of Association.
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:
The trustees are elected at the charity's Annual General Meeting. Trustees may also be co-opted by the Executive Committee during the year. No trustee may hold the same officer post for a continuous period of more than 6 years.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The business of the charity is managed by the Executive Committee which meets monthly or bimonthly, depending on matters arising, and is made up of the trustees of the charity.
The daily operation of the organisation is undertaken by trained volunteers together with paid members of staff. Specifically, the day to day running of the Centre is delegated to an on-site officer; this position was held by Hannah Cooper.
New trustees receive an induction pack which fully explains their responsibilities and obligations under charity and company law, a copy of the Memorandum and Articles of Association, details of the financial position of the charity, together with information about meetings they will be required to attend and the format of such meetings. In addition, training is made freely available by the charity to all new trustees and is provided by an external organisation.
The trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of The Leicester Counselling Centre (the charity) for the year ended 31 March 2025.
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 Companies Act 2006.
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 Companies Act 2006 other than any requirement that the financial statements 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 financial statements 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.
Investments
The statement of financial activities includes all gains and losses recognised in the year.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The Leicester Counselling Centre is a private company limited by guarantee incorporated in England and Wales. The registered office is No. 1 Lodge, Victoria Park, London Road, Leicester, LE1 7RY.
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (issued in October 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 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 charity. 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 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 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 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.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
Expenditure is included in the Statement of Financial Activities on an accruals basis, inclusive of any VAT which cannot be recovered.
Charitable expenditure comprises those costs incurred by the charity on 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 based upon either time spent on the actual activities or usage.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Grants receivable
Investments
Supervision and assessment fees
Qualified Counsellor Payment Scheme
Trainer & Workshop expenses
Travelling expenses
Rent and rates
Insurance
Light and heat
Canteen and cleaning
Repairs and maintenance
Printing, postage and stationery
IT and Telephone
Legal and professional
Independent examiner's fees
Bank charges
General expenses
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
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 Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
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.
The NHS England grant "Getting Help in Neighbourhoods" was provided to cover a proportion of the Counselling Lead's salary, together with contributing towards the qualified counsellor payment scheme, software to facilitate a small remote counselling provision and mental health awareness training for staff and volunteers.
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.
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
There were no disclosable related party transactions during the year (2024 - none).