REGISTERED COMPANY NUMBER: SC376752 (Scotland)

REGISTERED CHARITY NUMBER: SC001163

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31st March 2025

for

Relationships Scotland–Counselling

Highland Limited

Page

Report of the Trustees

1

to

6

Independent Examiner's Report

7

Statement of Financial Activities

8

Balance Sheet

9

to

10

Notes to the Financial Statements

11

to

19

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31st March 2025. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Financial review

Reserves policy

Property Fund:

This is a designated restricted fund representing the purchase price of our View Place, Inverness property less depreciation charged thereon.

Restricted Funds:

These are monies received from grant funders and supporters for a specific area of expenditure. They are not freely available to spend.

Unrestricted Funds:

These are funds that are freely available to spend - free reserves. Within unrestricted funds the Trustees will designate sums to meet known and potential expenditure. A reserve equivalent to 3 months organisational operating costs will be maintained (approximately £25,000). Bank balances as at 31 March 2025 were £41,947.68 as opposed to £47,646.82 as at 31 March 2024.

Our Reserves Policy is to maintain a level of Unrestricted Reserves to meet 3 months of operating costs. The current level of Unrestricted Reserves is £25,955 which constitutes approximately 3 months of operating costs.

The board recognises that grant monies will be used in their entirety in the furtherance of our charitable objectives. Grant funding provided 47% income this year compared to 51% last year.

Structure, governance and management

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

The service is registered as a charity in Scotland. It became a company limited by guarantee on 13 April 2010. The business of the charity shall be the responsibility of the directors who delegate as appropriate to management and committees.

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by

guarantee, as defined by the Companies Act 2006.

RS-CH has a clearly defined structure, with the Board of Trustees delegating some responsibilities to committees and manager. The manager is seen as the lynchpin of the organisation, receiving guidance from and giving guidance to the board and committees.

The Board, trustees, induction and training

The Board was strengthened by the appointment of two Trustees during this period. Mr Fergus Weir and Mr Tom Fricker were appointed on 6 September 2024.

Annetta Parker stood down as Chair at the AGM on 21 November 2024.

Fergus Weir was nominated and duly appointed as Chair at the AGM held on 21 November 2024.

Recruitment of Trustees / Directors

The Charity has an ongoing recruitment strategy to ensure good governance. It should be noted that all 3rd sector

organisations are faced with challenges with regards to recruiting volunteers. Fergus Weir is a trainee counsellor who also has over 20 years of experience as a business owner and managing director of 2 separate companies. Tom Fricker is also a trainee counsellor who brings a wealth of experience working in 3rd sector organisations. Both new appointees bring invaluable skills to the board.

The organisation has in place a recruitment process for Trustees which includes a job description, application form, interview process, confirmation of appointment, an Induction checklist and ongoing arrangements for support. All Trustees / Directors are appointed in a voluntary capacity. Recruitment of Trustees is ongoing and is proving to be difficult.

OSCR guidance on the recruitment of Trustees is followed along with that of Scottish Council for Voluntary Organisations (SCVO)

The duties and responsibilities of Trustees and Company Directors are outlined by OSCR and in our own constitution and we abide by these.

Risk Management

The Board has assessed the operations and finances of RS-CH including major risks to which the charity is exposed. It is satisfied that systems are in place to mitigate exposure to the major risks. In particular, the current economic climate is such that national funding is uncertain, and RS-CH is taking all the steps it can to increase income generated from within, for example room hire and client donations, in anticipation of loss from the local and National government. The Charity has also carried out a review of the quantity of sessions offered, the average donation and price point of sessions offered, and also the maximum sessions available per client, to increase the revenue income generated from services offered wherever possible. The charity has also initiated the implementation of new practice management and accountancy software to streamline and automate clinical and administration services to reduce time and resources that were previously being utilised on more manual tasks.

The Professional Services Committee

The service reviewed the purpose and function of this Committee and after a period of consultation it was as

disbanded with the last Minuted meeting being 24th July 2024.

Matters related to client services, including intake, counselling, supervision; training and advising on relevant CPD

opportunities thereafter sitting within the remit of the Service Manager.

Management team

Operational Staff:

Following a review, and after identifying and implementing new software systems (Zanda Health) and more efficient processes for managing client bookings and client management, a restructuring of the Operational team took place creating a team of two part-time employees as opposed to three. This additionally had a reduction in the annual salary costs.

Service Manager:

Anna Lynch, was appointed to the position of Service Manager in September 2024, giving her overall responsibility for the running of the office and all matters relating to it. She had a dual role in the Service Manager (p/t) and the

Counselling Development Officer (p/t) until the end of the financial year in March 2025.

Finance and Client Management:

Irene Massey was appointed to the position of Finance and Client Management in October 2024 and has the

responsibility for managing and maintaining all bookkeeping, client and counsellor allocations and bookings, and

general office administration for day-to-day operational running.

Counselling Development Officer (CDO):

Anna Lynch was employed in this part-time post as CDO throughout the financial year continuing this role in tandem with the part-time Service Manager position from September 2024 until March 2025.

A grant by the National Lottery (Awards for All) fund was awarded during the year but, due to this not yet being allocated during the period was deferred into FY 25/26 for use against the CDO role.

Finances

Core Funding: Half of the total finding for the Relationships Scotland comes from the Scottish Government, via the Corra Foundation which exists to make a difference to the lives of people and communities. It works with others to encourage positive change, opportunity, fairness and growth of aspirations which improve quality of life. Since 1985 the foundation has distributed almost £193m and made 24,000 grants to charities.

These funds are granted to Relationships Scotland, from whom we receive an annual grant of £14,747. Highland Council, Health and Social Care Services also provide an annual grant of £9,022. During the year we have also been grateful to receive additional financial support as detailed below.

Grant Funding 2024-2025

Scottish Government viaRelationships Scotland

£14,747.00

Annual Grant

Highland Council - Health & SocialCare

£9,022.00

Annual Grant

Robertson Trust

£14,701.05

Development Officer Funding. £14,000 received to cover period 1.5.24 - 30.4.25

Trusthouse Charitable Foundation

£6,000

Counselling for Merkinch area

Inverness Common Good Fund

£1,645.00

Balance of Grant awarded May 2023

£46,115.05

Trusthouse Charitable Foundation:

A grant of £6,000 was received 15 June 2023 to assist with costs of counselling sessions for people in the locality of Merkinch, Inverness. This was held as deferred income at 31 March 2024 pending delivery of the counselling sessions during year to 31 March 2025.

Robertson Trust:

We were awarded a £42,000 grant (3 x £14,000 annually) to fund a Development Officer role. The first £14,000 was received in April 2022 and the 3 grants have all been received and fully utilised.

Inverness Common Good Fund:

ICF approved a grant of £3,150 on 30th May 2023 to provide counselling support to clients living in IV1 and IV3 areas of Inverness. Income of £1,505.00 had been accrued at 31st March 2024 to represent the value of the counselling sessions delivered to that date. The balance of counselling sessions has been delivered and the grant has been paid in full.

National Lottery Community Fund (Awards 4 All):

A grant of £15,000 was received from the National Lottery Community Fund on 30th August 2024. This is for a "Healthy Relationships with Counselling Highland" Project. No work has been undertaken during the year and the full amount has been treated as deferred income.

Organisation Statistics : 1 April 2024 to 31 March 2025

RS-CH Appointments 2021 to 2025

Number of New Cases

1 April 2021 -31 March 2022

1 April 2022 -31 March 2023

1 April 2023 -31 March 2024

1 April 2024 -31 March 2025

Individual

54

51

27

55

Couples

74

53

55

70

SRT

9

2

N/A

N/A

Number of Sessions Held

1 April 2021 -31 March 2022

1 April 2022 -31 March 2023

1 April 2023 -31 March 2024

1 April 2024 -31 March 2025

Individual

514

432

323

538

Couples

654

437

629

465

SRT

94

33

0

0

In Summary

I would like to conclude the Trustees Annual report with a huge THANK YOU to all the clients who reach out to us and to all in the organisation who, in their own way, make it possible to provide the service.

Our Vision is to build accessible, Highland-wide counselling services to enable couples and individuals to build healthy relationships.

Our Mission - our not-for-profit company will focus on sustainability and resilience through the development of income streams and partnerships, in order to build client-centred services across the Highlands.

How shall we accomplish this?

Our business growth and development framework is aimed at ensuring sustainability, resilience and growth in order that our charitable objectives can be met.

1. Grow Counselling Highland profile and outreach across the Highlands

2. Grow current services

3. Introduce new counselling and other services

4. Grow our range of income streams

5. Develop partnerships with businesses and with organisations related to our own

The above will only be possible by engaging with all stakeholders as each will have their unique part to play in shaping the future.

Reference and administrative details

Registered Company number

SC376752 (Scotland)

Registered Charity number

SC001163

Registered office

6 View Place

Inverness

IV2 4SA

Trustees

Mrs Annetta Parker

Mr David Molnar

Mrs Alison Kennedy-Bearman

Mr Tom Fricker (appointed 6 September 2024)

Mr Fergus Weir (appointed 6 September 2024)

Independent Examiner

Stuart McMartin, FCA

Frame Kennedy

4th Floor Metropolitan House

31-33 High Street

Inverness

Inverness-shire

IV1 1HT

Approved by order of the board of trustees on 23rd December 2025 and signed on its behalf by:

Fergus Macdonald Weir - Trustee

I report on the accounts for the year ended 31st March 2025 set out on pages eight to nineteen.

Respective responsibilities of trustees and examiner

The charity's trustees are responsible for the preparation of the accounts in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). The charity's trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the Accounts Regulations does not apply. It is my responsibility to examine the accounts as required under Section 44(1)(c) of the Act and to state whether particular matters have come to my attention.

Basis of the independent examiner's report

My examination was carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations 2006. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as 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 accounts.

Independent examiner's statement

In connection with my examination, no matter has come to my attention :

(1)	which gives me reasonable cause to believe that, in any material respect, the requirements

-	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 accounts which accord with the accounting records and to comply with Regulation 8 of the 2006 Accounts Regulations

have not been met; or

(2)	to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Stuart McMartin, FCA

The Institute of Chartered Accountants in England and Wales

Frame Kennedy

4th Floor Metropolitan House

31-33 High Street

Inverness

Inverness-shire

IV1 1HT

23rd December 2025

2025

2024

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

Income and endowments from

Donations and legacies

2

51,620

20,701

72,321

70,998

Other trading activities

3

24,532

-

24,532

14,788

Investment income

4

573

-

573

530

Total

76,725

20,701

97,426

86,316

Expenditure on

Charitable activities

5

General

95,541

22,321

117,862

90,901

NET INCOME/(EXPENDITURE)

(18,816

)

(1,620

)

(20,436

)

(4,585

)

Reconciliation of funds

Total funds brought forward

44,471

58,326

102,797

107,382

Total funds carried forward

25,655

56,706

82,361

102,797

2025

2024

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

Fixed assets

Tangible assets

11

2,355

56,706

59,061

61,212

Current assets

Debtors

12

6,008

-

6,008

5,859

Cash at bank and in hand

26,947

15,000

41,947

47,648

32,955

15,000

47,955

53,507

Creditors

Amounts falling due within one year

13

(9,084

)

(15,000

)

(24,084

)

(11,720

)

Net current assets

23,871

-

23,871

41,787

Total assets less current liabilities

26,226

56,706

82,932

102,999

Provisions for liabilities

14

(571

)

-

(571

)

(202

)

NET ASSETS

25,655

56,706

82,361

102,797

Funds

15

Unrestricted funds

25,655

44,471

Restricted funds

56,706

58,326

Total funds

82,361

102,797

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st March 2025.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st March 2025 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

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

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

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

The financial statements were approved by the Board of Trustees and authorised for issue on 23rd December 2025 and were signed on its behalf by:

Fergus Macdonald Weir - Trustee

1.	Accounting policies

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Income

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

Expenditure

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

Tangible fixed assets

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

Freehold property

-

2% on cost

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Taxation

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

Fund accounting

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

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

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

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company participates in a multi-employer defined benefit scheme in the UK.

It is not possible to obtain sufficient information to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.

The scheme is classified as a 'last man standing arrangement'. Therefore the company is potentially liable for other participating employers obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

Any deficit contributions paid & Net Present value liability provisions are included in the accounts for the year ended 31st March 2025.

Pension costs and post retirement benefits

The company participates in a multi-employer defined benefit scheme in the UK.

It is not possible to obtain sufficient information to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.

The scheme is classified as a 'last man standing arrangement'. Therefore the company is potentially liable for other participating employers obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

Any deficit contributions paid & Net Present value liability provisions are included in the accounts for the year ended 31st March 2025.

Fair value

Fair value is the amount for which an asset could be exchanged or a liability settled between knowledgeable, willing parties in an arm's length transaction.

2.	Donations and legacies

2025

2024

£

£

Donations

22,350

23,119

Gift aid

3,856

3,935

Grants

46,115

43,944

72,321

70,998

Grants received, included in the above, are as follows:

2025

2024

£

£

Highland Council

9,022

9,022

Scottish Government

14,747

14,747

Robertson Trust

14,701

16,651

Ideas Fund

-

2,019

Inverness common good fund

1,645

1,505

Trusthouse Charitable Foundation

6,000

-

46,115

43,944

3.	Other trading activities

2025

2024

£

£

Counselling income

1,382

4,573

Donations for use of room

21,890

8,255

Intake fees

1,260

1,960

24,532

14,788

4.	Investment income

2025

2024

£

£

Deposit account interest

573

530

5.	Charitable activities costs

Support

Direct

costs (see

Costs

note 6)

Totals

£

£

£

General

112,844

5,018

117,862

6.	Support costs

Governance

Finance

costs

Totals

£

£

£

General

2

5,016

5,018

7.	Net income/(expenditure)

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

2025

2024

£

£

Depreciation - owned assets

2,151

2,235

Other operating leases

320

320

8.	Trustees' remuneration and benefits

There were no trustees' remuneration or other benefits for the year ended 31st March 2025 nor for the year ended 31st March 2024.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31st March 2025 nor for the year ended 31st March 2024.

9.	Staff costs

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

2025

2024

Employees

4

6

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

10.	Comparatives for the statement of financial activities

Unrestricted

Restricted

Total

funds

funds

funds

£

£

£

Income and endowments from

Donations and legacies

52,328

18,670

70,998

Other trading activities

14,788

-

14,788

Investment income

530

-

530

Total

67,646

18,670

86,316

Expenditure on

Charitable activities

General

70,611

20,290

90,901

NET INCOME/(EXPENDITURE)

(2,965

)

(1,620

)

(4,585

)

Reconciliation of funds

Total funds brought forward

47,436

59,946

107,382

Total funds carried forward

44,471

58,326

102,797

11.	Tangible fixed assets

Fixtures

Freehold

Plant and

and

property

machinery

fittings

Totals

£

£

£

£

Cost

At 1st April 2024 and 31st March 2025

81,007

8,029

4,237

93,273

Depreciation

At 1st April 2024

22,681

6,124

3,256

32,061

Charge for year

1,620

286

245

2,151

At 31st March 2025

24,301

6,410

3,501

34,212

Net book value

At 31st March 2025

56,706

1,619

736

59,061

At 31st March 2024

58,326

1,905

981

61,212

12.	Debtors: amounts falling due within one year

2025

2024

£

£

Trade debtors

3,365

2,241

Accruals

1,562

2,488

Prepayments

1,081

1,130

6,008

5,859

13.	Creditors: amounts falling due within one year

2025

2024

£

£

Trade creditors

4,977

1,181

Social security and other taxes

1,579

1,078

Other creditors

-

120

Deferred income

15,644

6,701

Accrued expenses

1,884

2,640

24,084

11,720

14.	Provisions for liabilities

2025

2024

£

£

Provisions

571

202

15.	Movement in funds

Net

movement

At

At 1/4/24

in funds

31/3/25

£

£

£

Unrestricted funds

General fund

44,673

(18,447

)

26,226

Defined benefit pension scheme

(202

)

(369

)

(571

)

44,471

(18,816

)

25,655

Restricted funds

Property Fund

58,326

(1,620

)

56,706

TOTAL FUNDS

102,797

(20,436

)

82,361

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

76,725

(95,172

)

(18,447

)

Defined benefit pension scheme

-

(369

)

(369

)

76,725

(95,541

)

(18,816

)

Restricted funds

Property Fund

-

(1,620

)

(1,620

)

Robertson Trust

14,701

(14,701

)

-

Trusthouse charitable foundation

6,000

(6,000

)

-

20,701

(22,321

)

(1,620

)

TOTAL FUNDS

97,426

(117,862

)

(20,436

)