The trustees present their annual report and financial statements for the year ended 31 March 2026.
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, 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)” (second edition - October 2019) (effective 1 January 2019).
Objectives and aims
The main objectives and aims of COSCA, which are solely charitable, include the advancement of education, the advancement of health and the relief of those in need by reason of ill health by advancing, developing, maintaining, improving and expanding all forms of counselling and related activities and therapies in Scotland and beyond for the public benefit.
Objectives for the year
The five strategic objectives of COSCA for the year were to:
inform and influence policy making at local and national levels on key issues affecting counselling, psychotherapy, counselling skills and supervision of practice
increase access to a wider range of ethically based services to larger numbers and more diverse groups of people
increase the access of individuals and agencies to training, knowledge and information on counselling, psychotherapy, counselling skills and supervision of practice
develop and promote quality assurance systems and ethical standards for counselling, psychotherapy, counselling skills and supervision of practice
develop, communicate and market COSCA as Scotland's professional body for counselling, psychotherapy, counselling skills and supervision of practice.
COSCA's strategies
The strategies employed to assist COSCA to meet these objectives are laid down in COSCA's Development Plan 2025-2026. These include details of the ways in which the above objectives will be met and the performance indicators, timescales, lead roles, and partners for doing so.
Significant activities
The main areas of charitable activity are the services related to the provision of information to the public on counselling, psychotherapy and the use of counselling skills, the validation of counselling and counselling-related courses, the accreditation of counsellors/psychotherapists and trainers, the recognition of counselling/counselling skills organisations, publication of good practice and ethical guidance, and the provision of networking and continuing professional development opportunities via conferences, seminars and other events and dealing with members' enquiries, including ethical issues.
Quantified use of volunteers
COSCA is committed to the development and promotion of a volunteer ethos in its work. In addition to the volunteers on COSCA's Board, COSCA directly engages, manages and supports around 30 other volunteers and follows recognised good practice in doing so. These volunteers work on COSCA's decision-making and policy formulation groups in relation to training, counselling, ethics, equalities, membership, human resources, regulation, children and young people, journal, finance and research related activities.
Explanation of performance against objectives
In the year under review, COSCA performed to a high standard, meeting over 90% of the performance indicators laid down in the Development Plan.
In the face of continued economic and political uncertainty, COSCA demonstrated resilience, creativity and determination in its work of promoting counselling and psychotherapy. COSCA did this in collaborative partnerships with our members, many of whom also faced similar challenges in trying to make a meaningful difference to the lives of individuals and communities across Scotland. In the last year, COSCA supported its members through the delivery of a range of services, including the renewal of membership, production of our journal, Counselling in Scotland, and advice and support. COSCA also validated and re-validated counselling skills, specialist, supervision and diploma courses. COSCA’s Recognition Scheme for Counselling & Counselling Skills Organisations attracted new member organisations, and work is on-going on monitoring and supporting existing member organisations and promoting the recognition Scheme to member organisations who have not yet applied.
After due process via our accreditation panels, COSCA accreditation has been awarded to both counsellors and trainers. Applications for trainer accreditation this year have continued in line with the number of new courses being validated, with nearly all of the trainers on COSCA validated courses being accredited as trainers by COSCA, and all other trainers involved approved in advance by COSCA to deliver COSCA validated courses. The number of students registered with COSCA for successful completion of COSCA validated courses across Scotland this year amounted to 1,451. We received core investment from the Scottish Government for 2025-26. This funding has allowed us to plan our work with confidence over this last year. COSCA’s application to the Scottish Government for funding for 2026-2027 was submitted and a grant offer has been received and accepted.
COSCA’s 11th application to the Professional Standards Authority for Health and Social Care for the renewal of the accreditation of the COSCA Register of Counsellors and Psychotherapists was successful. In the last year we have seen an overall increase of 36 in the number of registrants on the COSCA Register of Counsellors and Psychotherapists, giving a total of 849 registrants. There has been an overall increase of 170 in the number of individual members, which includes the above registrants but also student, counselling skills, and associate members, giving a total of 1,642 individual members of COSCA.
The potential risks to counselling in Scotland discussed by the Board during this year, but not added to the COSCA’s Client Risk Matrix, were:
the increasing use of artificial intelligence (AI) in counselling and psychotherapy
distress related to climate change
wider societal concerns related to environmental sustainability.
Under the 5 objectives of the Development Plan 2025-2026, COSCA achieved the following outcomes:
OBJECTIVE 1: inform and influence policy making at local and national levels on key issues affecting counselling, psychotherapy, counselling skills and supervision of practice
Communicated key messages to influence decision makers and stakeholders:
participated in the meetings of the Scottish Government’s Counselling in Schools Coordinators Network (June 2025, March 2026)
promoted COSCA by attending the Professional Standards Authority Collaborative Group meetings of accredited registers (June, September, December 2025 & March 2026)
attended PSA’s event (December 2025)
responded to PSA’s consultation on its draft new Standards for Accredited Registers
submitted comments on PSA’s draft maturity model (March 2026)
attended meetings of the Scottish Parliament’s Children and Young People Cross Party Group (June 2025)
OBJECTIVE 2: increase access to a wider range of ethically based services to larger numbers and more diverse groups of people
Increased Accessibility to Counselling and Psychotherapy:
provided and maintained online public access to the COSCA Register of Counsellors and Psychotherapists
provided information on how to access counselling and psychotherapy services in Scotland
promoted our ‘Making Safer Choices - COSCA’s Guide for People Considering Counselling/Psychotherapy’ leaflet
provided information about COSCA’s Recognition Scheme for Organisations via online cafes, emails, and email/telephone/written communication and annual standards event (August 2025)
maintained our online directory of counselling services for children and young people
produced, implemented and reviewed COSCA’s Equality, Diversity and Inclusion Action Plan
OBJECTIVE 3: increase the access of individuals and agencies to training, knowledge and information on counselling, psychotherapy, counselling skills and supervision of practice
Increased Access to Information and Training:
provided information to the public on how to become a counsellor or psychotherapist
maintained academic accreditation from the University of the West of Scotland for the SQCF crediting and levelling of the COSCA Counselling Skills Course and the COSCA Counselling Supervision Course
published articles in one edition of COSCA’s Journal, Counselling in Scotland (Autumn/Winter 2025)
held the following COSCA Events: Annual Ethics Event on Innovative Aspects of Relational Ethics (February 2026); the annual trainers events for validated providers and trainers (November 2025) based on the proposed Diploma level changes with inputs on Working responsibly with Risk at Certificate and Diploma level
arranged and supported 3 meetings of the Course Validation Panel and issued outcome letters to all applicants
maintained regular contact with other UK based professional bodies via the PSA Accredited Registers programme, and with the Irish Association for Counselling & Psychotherapy and the International Association for Counselling
reconvened in-person meetings of the COSCA national counselling agencies meetings (November 2025, November 2026)
updated the Scottish Government guidance on the recruitment of counsellors in schools
offered the validated training providers sustainability support group
announced the creation of the ‘Embedding Equality, Diversity and Inclusivity in Training Standing Policy Group
COSCA’s Counselling Skills Course:
provided support and advice to 11 potential training providers
monitored courses via 127 Student Feedback Forms and 17 Annual Monitoring Forms
issued 758 counselling skills certificates to students who completed the Skills Course
delivered 2,257 hard copies of participants handbooks and 58 trainers handbooks
delivered 1,483 digital copies of participants handbooks and 23 digital copies of trainers handbooks
re-validated 9 counselling skills training providers
validated 4 new training providers
received 2 COSCA Assessor’s Reports for courses applying for validation
Other Counselling Skills Courses:
Issued 48 other counselling skills certificates to students who completed other counselling skills courses
Diploma Courses in Counselling:
revalidated 1 diploma training providers
validated 1 new diploma training providers
issued COSCA validated diploma certificates in counselling to 343 participants
registered an additional 158 graduates of diploma courses, giving a total of 501 successful participants
received 11 Annual Monitoring Forms for courses applying for validation
provided support and advice to 5 potential training providers
drafted and distributed survey on diploma course procedures and guidelines
Specialist Courses:
re-validated 3 specialist course
received 7 Annual Monitoring Forms
registered 60 names of successful participants
awarded 9 Specialist Course Certificates
Counselling Supervision Courses:
registered 60 participants on the COSCA Counselling Supervision Certificates
awarded 60 COSCA Counselling Supervision Certificates
registered 9 for other supervision courses
awarded 2 other supervision course certificates
received 5 Annual Monitoring Forms
delivered 43 hard copies of course handbooks
revalidated 2 new COSCA Supervision Course training providers
validated 2 new COSCA Supervision Course training providers
Counselling Supervision Skills Courses:
registered 15 participants in the COSCA Supervision Skills Courses Certificates
awarded 15 COSCA Supervision Skills Courses Certificates
COSCA’s Group Counselling Skills Course:
promoted the Group Counselling Skills Course on an ongoing basis
offered advice and support on the course
OBJECTIVE 4: develop and promote quality assurance systems and ethical standards and for counselling, psychotherapy, counselling skills and supervision of practice
Ethical Practice:
advised on request COSCA members regarding ethical practice
held 3 meetings of COSCA’s Ethics Committee and dealt with meeting outcomes
reviewed and updated COSCA’s Risk Matrix for the Practice of Counsellors and Psychotherapists
implemented COSCA’s bi-annual audit systems of registrants and member organisations
invited all members to check their online presence and use of logos against COSCA’s membership standards
informed members about changes in relation to Disclosure/PVG checks in relation to regulated roles
offered guidance on counsellors working within their competencies
added new geopolitical risk to COSCA’s Risk Management Report
published COSCA’s statement on the Supreme Court Ruling on Biological Sex
published changes to counselling supervision ratio and updated COSCA Statement of Ethics and Code of Practice
Accreditation of Counsellors and Psychotherapists:
assessed 4 counsellor accreditation applications via 2 Counsellor Accreditation Panel meetings
provided assistance and support on applying for counsellor accreditation
maintained and admitted 6 applicants to our Registration System for Counsellor Accreditation
approved 66 Forms for the Annual Renewal of Counsellor Accreditation
held counsellor accreditation workshops (June and December 2025)
updated the counsellor accreditation guidelines in relation to formatting, supervisory report, therapeutic approach section word count for those declaring multiple approaches, assessment section word count for those working across multiple settings, and introduced new word count for those with additional support needs
Accreditation of Trainers:
assessed 23 applications for trainer accreditation via 2 meetings of the Trainer Accreditation Panel
approved 120 Annual Renewal of Trainer Accreditation Forms
admitted 6 new registrants to our Registration System for Trainer Accreditation
provided assistance/support on applying for trainer accreditation
held trainer accreditation workshops (June & December 2025)
updated the certificate level trainer accreditation guidelines to increase clarity of criteria, and increased word count for those declaring additional support needs
created a separate fillable and more suitable specialist trainer accreditation application with incorporated guidelines and updated criteria, with increased word count for those with declared additional support needs
created a separate fillable transfer from certificate to diploma level trainer accreditation application with incorporated guidelines and with increased word count for those declaring additional support needs
updated the Diploma level accreditation application form/guidelines with increased word count for those declaring additional support needs
Recognition Scheme for Counselling/Counselling Skills Organisations
maintained the Recognition Scheme Handbook and assisted 31 Recognised Organisations with its roll-out
updated guidance on Student Placements and PVG Scheme
received notification of interest from 2 new organisations
admitted 1 organisation to the pre-recognition scheme
visited 1 organisation for first third year annual monitoring
approved renewal of 8 Recognised Organisations via 3, 6, 9,12 and 15 years annual monitoring forms
approved renewal of 11 Recognised Organisations via standard annual monitoring forms.
issued 2 updates to the Recognition Scheme Assessors and Verifiers
analysed and published the results of the COSCA Recognised Organisations Annual survey
met with 6 organisations to discuss joining the Recognition Scheme
held the 14th Annual Standards Event (August 2025): How can we make use of AI in counselling and counselling skills
checked and provided feedback on the complaints procedures of 20 Recognised Organisations and 7 new applicants for organisational membership and existing member organisations against COSCA’s complaints standards
added organisational culture outcome to Recognition Scheme standards on a pilot basis
produced 2 Spotlight features for the COSCA Journal
OBJECTIVE 5: develop, communicate and market COSCA as Scotland’s professional body for counselling, psychotherapy, counselling skills and supervision of practice
Membership Services Reviewed and Developed:
applied for and received one year core grant (2025-2026) from the Scottish Government
completed COSCA’s 11th annual re-accreditation application to the Professional Standards Authority (PSA) and awarded re-accreditation
maintained and reviewed COSCA’s Register of Counsellors and Psychotherapists and other online directories for validated courses, member organisations, accredited trainers, and supervisors
maintained COSCA’s website and carried out GDPR review of its contents
held 4 meetings of the Corporate Affairs Group and awarded 555 new individual memberships and 6 new organisational memberships
sent e-mailings and 4 e-bulletins to members
carried out 2 audits of individual and organisational members
attended meetings of SCVO’s national intermediaries group and its annual event, the Gathering
informed members about making Gift Aid claims for COSCA membership fees
appointed and inducted new Vice Chair, 2 Board members, and 1 Lay Representative to COSCA Board
met OSCR’s identity verification requirements for Board members
attended event on new employment legislation
signed a VAT letter to the Treasury urging equality on VAT for registrants on PSA accredited registers
initiated the recruitment process to appoint new Chair of COSCA
Income Generated from Membership Subscriptions:
membership fees from 1,642 individual members and 107 organisational members
Implementation and Review of Financial Strategies:
financial systems and procedures reviewed and implemented
independent financial report produced and submitted to Board, COSCA members, OSCR, Companies House and the Professional Standards Authority for Health and Social Care
forecasts, budgets and reports produced and reviewed on schedule
maintained diversification of COSCA’s banking and investment arrangements
maintained level of self-generated income
Keeping up to Date with New Laws and Procedures:
monitored and updated Board and members on the political developments related to conversion therapies and gender recognition
held in person Annual General Meeting of members (September 2025)
attended NHS Research Mental Health Conference (October 2025)
attended NHS Scotland Annual Event (June 2026)
COSCA Staff Developed and Supported:
staff developed and supported via regular training, supervision, staff meetings
COSCA Board’s Governance Capacity Maintained:
reviewed risk analysis and management report
held 4 meetings of the COSCA Board and provided secretariat support to meetings
carried out election, appointment procedures and induction of 3 new Board member
updated Register of Interests and Performance Review records of Board members
submitted annual returns to OSCR and Companies House
annual reports delivered by Board members on their areas of interest at Board meetings
COSCA marketed as Scotland’s Professional Body:
attended meetings of SCVO’s National Intermediaries Group
maintained and updated COSCA’s Facebook page
reviewed and refreshed COSCA website on a regular basis
issued 4 e-bulletins to members of COSCA
Development Plan 2025-2026
The Development Plan for 2026-2027 outlines COSCA’s work plan for the next year.
Fundraising Performance against Objectives
COSCA successfully secured one year of funding from the Scottish Government Chief Nursing Officer Directorate. COSCA self-generated an income of £193,395 over the last year. The securing of funding from the Scottish Government Chief Nursing Officer Directorate has given COSCA much needed financial stability during this period.
Financial review
Principal Sources of Funding
With the aid of sound financial management and the support of its staff, volunteers, sessional workers and members COSCA generated a deficit for the period with a net decrease of funds of £18,518.
It was successful in obtaining the following funding:
Chief Nursing Officer Directorate awarded a grant of £70,000 for the period 2025-2026.
In addition, income generated by COSCA's activities, including donations, amounted to £194,981 for the period.
On a fund by fund basis, the assets of the charity are available and adequate to fulfil the obligations of the charity.
Investment Performance
From its bank deposits COSCA raised £21,463 in interest received in this period. This represents a 4% decrease on the previous period. The decrease in interest received can be attributed to variable interest rates on investments held.
Investment Policy and Objectives
COSCA's non-committed funds, including its reserves, are invested in a variety of bank and investment accounts, and the Board is happy with the returns achieved.
Reserves Policy
The company has identified a reserves requirement of £175,000. Free reserves at the year end amounted to £683,471. At this level the Board thinks that it would be able to continue the current activities of the company for a period in the event of a significant drop in funding.
Going Concern
After making appropriate enquiries, the trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Further details are given in the accounting policy 1.2.
Future Plans Including Key Objectives Set
COSCA plans to continue the activities outlined above and those in COSCA's Development Plan 2026-2027 in the forthcoming year subject to satisfactory funding arrangements.
Explanation where specific factors may affect future performance
In December 2012, the Professional Standards Authority for Health and Social Care (PSA) established its programme for the accreditation of registers of non-regulated health and social care workers. In June 2013 COSCA applied to PSA for accreditation of the COSCA Register of Counsellors and Psychotherapists. In June 2014 COSCA's Register was accredited by PSA under its accredited registers programme, and in June 2015- 2026 COSCA was re-accredited. There was an initial application fee. There will also be on-going re-accreditation and other costs associated with maintaining accreditation under the above programme and COSCA will be accountable to PSA for meeting its robust accreditation standards.
Governing Document
The organisation is a charitable company limited by guarantee, incorporated on 29 January 1993. The company was established under a Memorandum and Articles of Association that established the objects and powers of the charitable company and is governed under its Memorandum and Articles of Association. In the event of the company being wound up, members are required to contribute an amount not exceeding £1.00. The Company is also recognised by the H.M. Revenue & Customs as a charity from 3 June 1991, and accordingly there is no liability to taxation on any of its income.
Trustees
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:
Recruitment and Appointment of Board
The directors of the company are also charity trustees for the purposes of charity law and under the company's Articles are known as directors of the Board. Under the requirements of the Memorandum and Articles of Association the directors of the Board shall retire automatically from the Board at the annual general meeting next following the sixth anniversary of their original appointment as a member of the Board, and they will not be eligible for re-election at that annual general meeting. Such a person shall be eligible for re-appointment to the Board after the expiry of twelve months following their retirement from office.
Under the above requirement, three members of the Board (the current Chair) will retire in September 2026. One Board Member, who was co-opted, resigned in September 2025. Two other Board Members resigned in November 2025 and May 2026 respectively. Recruitment for these vacancies have been held with relevant appointments to be made at the COSCA AGM in September 2026, or sooner as appropriate. A new Vice Chair was appointed in September 2025 following the retiral of the previous incumbent, under the above retirement arrangement.
As the work of COSCA (Counselling & Psychotherapy in Scotland) focuses on the promotion and development of counselling, psychotherapy and the use of counselling skills, the Board seeks to ensure that there is appropriate representation of these activities among members of the Board. To ensure this, the Board is constituted around areas of interest that are directly related to the aims and objectives of COSCA's Development Plan. As a result, both business and professional skills specific to the fields of counselling, psychotherapy and the use of counselling skills are well represented on the Board. In the event of a vacancy arising in any of the above areas of interest, elections are organised in advance of the next Annual General Meeting by the Company Secretary.
Indemnity provisions for trustees
The company has effected a charity trustees indemnity insurance policy at a premium of £238 (2025 - £247).
Organisational Structure
COSCA (Counselling & Psychotherapy in Scotland) has a Board to which three ex officio members (Chair, Vice-Chair and Treasurer), and a minimum of one member representing each of the eleven designated areas of interest can be appointed. In addition, the Board can co-opt up to four persons with specialist knowledge and expertise at any one time. The Board meets quarterly and is responsible for the strategic direction, governance and policy of COSCA. At present, the Board has members from a variety of the areas of interest relevant to the work of the charity. The Company Secretary also attends meetings of the Board, but does not have voting rights.
A scheme of delegation is in place and day-to-day responsibility for the running of the charity rests with the Chief Executive. The Chief Executive is responsible for ensuring that the charity delivers the aims and objectives of COSCA's Development Plan, and that the key performance indicators are met. The Chief Executive is responsible for the individual supervision of the staff team, and also ensuring that the staff team continue to develop their skills and working practices in line with good practice.
Trustee Induction and Training
All new members of the Board are invited to attend a formal and structured induction session to familiarise themselves with COSCA (Counselling & Psychotherapy in Scotland), including its history, purpose, and the contexts in which it operates, and with their role as a member of the Board. This session is led by the Chief Executive of COSCA (Counselling & Psychotherapy in Scotland) and covers discussion on COSCA's key documents, including its current Development Plan. All new Board members are provided with an Induction Pack that contains the above documents. Follow-up meetings are also offered on an individual basis. Feedback from new Board members about their induction has been very positive.
The Board is offered regular capacity building sessions covering their role as trustees and to keep them informed about new roles and responsibilities.
Network and Related Parties
As a membership organisation, COSCA works closely with its individual and organisational members in all its activities. It also works collaboratively when appropriate with other professional bodies at a UK and international level in the field of counselling, psychotherapy and the use of counselling skills. It regularly submits written responses to relevant Scottish Government consultation documents. It also submits written reports annually to its funders.
Governance and Internal control
During the year, COSCA (Counselling & Psychotherapy in Scotland) identified significant unauthorised payments from its bank accounts. Upon becoming aware of the matter, the Board took immediate action and notified the relevant parties, including the bank, Police Scotland, the Office of the Scottish Charity Regulator (OSCR), the Scottish Government and the charity's professional advisers.
The Board has worked closely with these parties to investigate the circumstances surrounding the incident, understand its financial and operational impact, and ensure that appropriate remedial action has been taken. The trustees have also undertaken a review of the charity’s financial controls, banking arrangements and governance procedures, implementing a number of enhancements designed to strengthen oversight and reduce the risk of similar incidents occurring in the future.
The charity’s independent examiner has supported the trustees and management by seeking and following appropriate professional advice regarding the next steps arising from the incident. The independent examiner has also carried out additional and enhanced testing as part of the independent examination process, taking account of the nature and circumstances of the unauthorised payments.
Through the prudent management of reserves over many years, the charity has remained financially stable and has continued to meet its ongoing obligations throughout this period.
The charity is pursuing recovery of the funds lost as a result of the unauthorised payments. A partial reimbursement has already been received from the bank, and additional avenues of recovery continue to be explored.
The trustees have kept members informed of developments and have confirmed that the charity continues to operate normally. Based on the information available to the trustees, there is no evidence that members' personal data was compromised as a result of this incident.
The trustees' report was approved by the Board of Trustees.
The trustees, who are also the directors of COSCA (Counselling & Psychotherapy in Scotland) for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
I report on the financial statements of the charity for the year ended 31 March 2026, which are set out on pages 13 to 23.
The charity’s trustees, who are also the directors of COSCA (Counselling & Psychotherapy in Scotland) 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 (as amended). 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 Charities Accounts (Scotland) Regulations 2006. 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 seeking 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.
COSCA (Counselling & Psychotherapy in Scotland) is a private company limited by guarantee incorporated in Scotland. The registered office is 16 Melville Terrace, Stirling, FK8 2NE, United Kingdom.
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, 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)” (second edition - October 2019) (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. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have reviewed the future funding and activities of the charity. 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.
Donations and similar income
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.
Grants receivable
Grants receivable are credited to the SOFA in the year in which they accrue.
Membership Income
Membership Subscriptions are included in the year in which the charity becomes entitled to the resource.
Income from charitable activities
Income from charitable activities includes income from activities or where entitlement is subject to specific performance conditions is recognised as earned (as the related service is provided).
Investment income, rental income and similar income
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.
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.
Costs of raising funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds. Charitable expenditure comprises those costs incurred by the charity in 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. Support costs are those costs incurred directly in support of expenditure on the objects of the charity. Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements. 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.
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
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.
Government grants
Investments
Raising funds
Training
Accreditation
Special projects
During the year the charity identified a number of unauthorised transactions amounting to £53,900 in the current financial period. The charity has pursued recovery of these amounts and compensation. The unrecovered balance has been recognised as expenditure within the Statement of Financial Activities for the year.
None of the trustees (or any persons connected with them) received any remuneration during the year, but 4 of them were reimbursed a total of £202 for meeting expenses (2025- £191).
The average monthly number of employees during the year was:
The charity considers its key management personnel to comprise of the trustees' and the Chief Executive.
One employee received remuneration (including employer national insurance contributions) in excess of £80,000 (within the band of £80,000 - £90,000).
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:
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 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.
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:
Following the year end, the charity identified significant unauthorised payments from its bank accounts. The financial statements include losses of £53,900 relating to unauthorised payments made before the year end (see note 9).
Further unauthorised payments were made after the reporting date, bringing the total losses arising from the incident to £233,650. The charity has successfully recovered £85,000 through the Authorised Push Payment reimbursement scheme and a further £5,900 through the Fraud Compensation Scheme. As these recoveries were approved and received after the reporting date, they have not been recognised in these financial statements.
At the date of approval of these financial statements, investigations into certain aspects of the incident remain ongoing. Due to the status of these investigations, the trustees are unable to determine whether any additional losses or recoveries may arise. No adjustment has therefore been made in these financial statements in respect of matters arising after the year end.
The trustees have reviewed the circumstances surrounding the incident and have taken steps to strengthen the charity's financial controls and governance procedures in order to mitigate the risk of similar incidents occurring in the future.
There were no disclosable related party transactions during the year (2025 - none).