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2021-03-31-accounts

Charity Registration No. 1045340

Company Registration No. 03029782 (England and Wales)

MONEY ADVICE AND COMMUNITY SUPPORT SERVICE

MONEY ADVICE PLUS

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

MONEY ADVICE AND COMMUNITY SUPPORT SERVICE MONEY ADVICE PLUS CONTENTS

Page
Trustees report 1 - 17
Independent auditor's report 18 - 21
Statement of financial activities 22 - 23
Balance sheet 24 - 25
Statement of cash flows 26
Notes to the financial statements 27 - 41

Money Advice & Community Support Service

(t/a Money Advice Plus) Report of the Trustees for the year ended 31 March 2021

Money Advice Plus Tisbury Road Offices Tisbury Road Hove BN3 3BQ 01273664000 info@moneyadviceplus.org.uk

The Trustees are pleased to present their Report together with the audited financial statements for the year ended 31[st] March 2021.

OBJECTIVES AND ACTIVITES

Charitable objects

To provide advice, counsel, support and assistance according to their needs to people (their families, carers and support agencies) in the United Kingdom who are having difficulty managing their financial affairs because of illness (mental or physical), poverty, old age, or economic abuse and to make such representations, application, education and training provision, policy guidance and research on their behalf (and similarly affected people) to appropriate parties as are relevant to these objects.

Vision

Our vision is a community where people have the advice and support, they need to manage their money effectively, helping them to maintain control of their lives, promoting greater peace of mind.

Mission statement

Our mission is to help people manage their money effectively. We do this by providing free innovative money handling and advice services, including expert benefit, debt and budgeting advice, and practical money handling support. Our non-judgemental and flexible approach is tailored to each individual’s needs, allowing us to reach people who find it most difficult to access advice.

The Charity operates both national and local services through its two offices – Brighton & Hove, and Eastbourne. The Brighton & Hove office delivering face to face advice and case work, community support and money handling within Sussex. The Eastbourne office delivering telephone and digital advice and case work services for clients throughout England & Wales. Due to the onset of the pandemic in March 2020 most staff took to working from home. Both offices have remained opened to enable staff to work remotely and support service users.

When planning services, the Charity decides where to direct services and seeks funding accordingly, taking into account the following factors:-

Page | 1 Money Advice Plus is the trading name of Money Advice and Community Support Services Registered Charity Number 1045340 Company Number 3029782 Established 1872 Authorised and regulated by the Financial Conduct Authority Number 618927

Activities

To meet our charitable remit and objectives the Charity carries out the following activities for the public benefit:

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Staff and volunteers

The majority of activities are carried out by paid staff. At the end of the 2020-21 financial year there were 16 full time and 41 part-time employees, with the average monthly number of full-time equivalent employees during the year being 40. The Charity follows Local Government pay scales.

The Charity encourages volunteering to supplement and enhance activities and Trustees and staff appreciate all the work they do. Unfortunately, during this year due to the pandemic, the Charity has been unable to support our volunteers in working for Money Advice Plus. It has, however, managed to keep in touch with all the volunteers and looks forward to welcoming them back to the office.

In addition to general Trustee activities, trustees provide support to the Chief Executive in a range of management, financial, business development and communication issues and give their time voluntarily.

Review of strategic objectives 2020-21

The following summarises progress made in delivering the 2020-21 strategy.

The one-year business plan considered what was needed to ensure the Charity can:

The five overarching aims arrived at are:

  1. To strengthen the organisation and its governance

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We achieved this by amending the charities Aims and Objectives and strengthening the breadth and depth of the Board of Trustees; so that we encompass a greater diversity of people to allow for strong governance over this period of change.

  1. To ensure our staff team are confident in their employment. During the year a benching marking and job evaluation took place by an independent organisation, HRSP. A proposal was submitted to the Trustees to assess who this will affect and how it should be implemented.

  2. To acquire additional funding for the Domestic Economic Abuse Project

During this year, the Charity successfully acquired additional funding and worked in partnership with Surviving Economic Abuse. The partnership is established and is known across the sector as the experts in this field. The support of victim-survivors is at the heart of all the work we do, and we want to be able to continue to support the demands the service has.

  1. To seek out new funding sources for financial capability work

The Charity has been trying to expand the amount of dedicated financial capability work we are able to offer clients, and we will continue to seek further funding with this aim in mind. Apart from the direct impact of debt and benefit work for all our clients, financial capability work has the greatest effect on financial resilience. Financial resilience is going to be of massive importance while people try to navigate themselves through and out the other side of the pandemic and going forward.

  1. To look for new partnerships

During this period, we have focused on strengthening the Board of Trustees, so that we encompass a greater diversity of people.

We have also continued to examine where and to whom, we should extend our offer. This has informed potential partnerships with other organisations and funding bids.

ACHIEVEMENTS AND PERFORMANCE

Performance in 2020-2021 (previous year figures in brackets)

Our charitable purpose is to “help people manage their money effectively” and we address this by providing the services described above. Evidence of the practical benefit of our services is demonstrated by our performance.

In 2020-21 we assisted 4,767 (3,893) people with debt and welfare benefit problems. These numbers are for just one year, but the impact on each individual client is immense, and for some, has life changing outcomes. Of these:

The result of this work was to: -

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Altogether with charitable payments and other financial outcomes, our clients were better off by a total of £4,474,556 (£4,328,273) per year, an average of £938 per client.

Money Handling service

PUBLIC BENEFIT

In shaping our objectives and planning our activities for the year, the Trustees have considered the duties set out in section 17(5) of the Charities Act 2011 to have due regard to public benefit. In particular, the Trustees have considered how the planned activities will contribute to the overall aims and objectives that they have set.

We demonstrate how we meet our public benefit responsibilities in many ways.

We are partners with a range of organisations including landlords; housing associations and local authorities to provide debt advice and casework to their residents.

This provides benefit to our partners in the following ways:-

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We provide the same debt and benefit advice to wider groups through a variety of one-off advice, short-term and long-term casework. This advice and casework increases the financial resilience of those struggling to manage financially.

We provide a money handling service to people who, for various reasons, need help to manage their money in order to remain as independent as possible in their own homes. During the Covid 19 pandemic, individual arrangements have needed to be greatly altered to comply with Government guidelines and ensure both staff and client safety. The Charity continued to provide a service to all existing clients and a number of newly referred vulnerable people.

The service is tailored to each client’s needs and can range from receiving the client’s full income, paying bills, setting aside amounts for housekeeping and personal spending and allocating amounts for savings, to a light touch service ensuring priority bills are paid and to help budget or ensure access to cash.

Clients can either collect their housekeeping/personal money from the Brighton and Hove office, have a home delivery or an amount paid into their own bank account. This service is mostly by voluntary agreement and based on an agreed budget which is periodically reviewed.

In many circumstances we take on the role of Corporate Appointee with the Department of Work and Pensions so that we can act on behalf of people who are in receipt of benefits. For some clients who are assessed not to have capacity to make decisions around their finances and no trusted person willing to act for them, we act as their Deputy (authorised by the Court of Protection) and make decisions on their behalf.

Financial Capability work is increasingly moving from the realm of a Money Adviser to that of a specialist Financial Capability worker. The client group is those who are just about managing, experience or expected to experience a change in their circumstance, debt free, or have a resolution to their debt, that is, they are at the end of the debt process. We see this as allowing an individual to explore their relationship with money and as enabling people to have the confidence and skills to navigate financial situations and decisions without unknowingly falling into debt traps.

Our partnership work with Surviving Economic Abuse (SEA) provides a support line and casework service to victims of domestic abuse. The partnership work with SEA has allowed the service to develop the Economic Abuse Evidence Form (EAEF) which is helping transform the process of debt advice for victim-survivors along with the response they receive from financial and other institutions who they owe money to. The EAEF is currently in the 1[st] phase of the pilot and supported by the Money and Pension Service, along with CISCO and the Rayne Foundation. work with victim-survivors of domestic and economic abuse.

Common with the Money Advice movement throughout the country our long-term aim is that, as far as is feasible, clients will be able to manage their own money affairs without the need for ongoing support. Our focus of work remains on helping people to resolve their immediate problems, but we continue to develop processes to give people the knowledge, skills and confidence to deal with their finances more effectively themselves in the future.

An improved sense of being in control of your finances removes a significant cause of stress thereby improving wellbeing and increasing resilience to financial challenges.

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Details of the Charity’s projects

Project Money Advice: national & regional Funded by
Specialist
Money
Advice provided to
Victim-Survivors of
Domestic
and
Economic Abuse		 Financial Support Line for Victims of Domestic
Abuse - providing one off advice and guidance
to victim-survivors who are struggling to
manage their money. The financial support line
provides a safe space for the victim-survivor to
discuss their financial situation and allowing
them to priorities issues and to move forward
with economic safety.
The Financial Support line casework service –
supports the pilot of the Economic Abuse
Evidence Form, providing a comprehensive,
person centred debt and benefit advice through
a safety lens.		 Partnership
with
Surviving
Economic
Abuse
Home
Office,
CISCO,
Rayne
Foundation, Money and
Pension Service
Housing
Association
Agreements		 This project provides comprehensive, person
centred debt, welfare benefit and budgeting
advice and casework to Housing Association
residents. It is delivered by phone and digitally.
Residents are referred by Housing Support
Workers when a particular need for support is
identified		 A range of H.As including
PA, Sovereign, Victory,
Hexagon
and
WeAreDigital (funded by
London & Quadrant)
Macmillan
East
Sussex
Welfare
Benefits Service		 Face to face and telephone advice and case
work to people affected by cancer living in the
southeast, in partnership with Brighton Housing
Trust		 In
partnership
with
Brighton Housing Trust
funded by Macmillan
Orbit Just About
Managing (JAM)		 Access to financial wellbeing interventions.
Support people tounderstand their relationship
with money, helping them to move forward with
financial confidence		 Orbit
Project Money Advice: local Funded by
Advice Matters Debt and benefit advice and casework work
targeted
towards
members
of
BAME
communities, foodbank users and extra support
due to the pandemic struggling to manage
energycosts in their home		 Brighton and Hove City
Council

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Debt
Advice
Project (MaPSDAP)		 Short term face to face debt advice and
casework. Through the pandemic this has been
delivered over the phone and digitally.		 Money
and
Pension
Service (MAPS) funded
debt advice project in
partnership with Citizen
Advice
Money
Advice
Service for Council
Tenants
and
Leaseholders		 The aims of the service are to increase financial
well-being and decrease the risk of financial
exclusion, to improve tenancy / leasehold
sustainment for residents of the Council by
helping them prioritise rent and service charge
payments. The service is delivered at desks
throughout the cityto meet these aims.		 Brighton and Hove City
Council
Moneyworks Provision of the city’s telephone advice and
referral line, together with welfare benefits and
debt advice case work for Brighton and Hove
residents.		 Brighton and Hove City
Council
Money Advice for
Wellbeing		 Provision of debt and welfare benefit advice and
casework for people with mental ill health,
engaged with secondary mental health services.
Consultancy and workshops for professionals.
Delivered
within
the
Community
Roots
partnership
Southdown Housing
Project Money handling Funded by
Brighton & Hove
Money
Management
Service		 Advice, casework , money management and
support service for adults with social care needs		 Brighton and Hove City
Council
Individual
agreements		 The services provided are essentially the same
as for the above project, with contracts being
drawn upto work with each individual client.		 East
Sussex
County
Council & West Sussex
CountyCouncil
Money Guardians The Charity contracts with individual fee-paying
clients to provide money handling services. The
benefits are that people who can afford to pay
(and don’t qualify for free services) can get help
to manage their money and are charged lower
rates than alternative providers (such as
solicitors).		 Funded by clients (self-
funders)

Financial Review

The year ended 31[st] March 2021 was the first year in the Charity's history that its total income exceeded £1.25 million. Total income at £1,286,871 increased by 5.6% compared with the previous year’s figure of £1,218,301.

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The two main elements of our income are Money Management services totalling £633,844, which made up for the bulk of the increased income this year, and Money Advice services, which increased by a small amount, and totalled £644,884.

Other income comprised £5,290 from donations and legacies, £2,371 from training and membership and £482 from investment income. There was also an unrealised gain from investments of £11,476 due to a favourable change in its market value at year-end.

Total expenditure amounted to £1,289,048. This represented a 9% increase on the previous year's figure of £1,186,158. Staff remuneration and associated expenses accounted for the bulk of the Charity's expenditure and amounted to £1,142,514 (88.6% of total expenditure) and represented an 9% increase on the previous year's figure of £1,043,091. Other costs at £146,534 increased by 2.4%, this was mainly due to extra costs associated with an amended operational environment due to the Covid-19 pandemic. The Charity continues to seek to ensure that all projects are funded on a full cost recovery basis.

Throughout the pandemic, the Charity has maintained all its grants and contracts, and in certain cases, has secured new funding to support either additional services and/or operational costs arising as a consequence. Consequently, it has operated close to its budget for this year, with extra unexpected expenditure mainly relating to the purchase of new laptops and associated digital costs to enable staff to work from home.

The bulk of the Charity’s income derives from income on contracts and grants. The Charity is now in the second year of a five-year contract, which provides Money Management services to clients referred by Adult Social Care of Brighton & Hove City Council. This contract accounts for 49% of the Charity’s total income for 2020-21. The certainty of this income means that the Charity is now less dependent on negotiating the bulk of its funding on an annual basis than in the previous years. However, the terms of this contract, in common with an increasing number of grants and contracts, stipulates that income payments are made in arrears, monthly in the case of this Money Management funding and quarterly in the case of other income. Close management of the Charity’s cash flow is therefore of critical importance. As of 31[st] March 2021, bank & cash balances totalled £338,221 a slight increase on the balance in the previous year of £333,620.

During the year total reserves increased by £9,298 to £455,317 on 31[st] March 2021.

Reserves Policy

The Charity requires protection against significant funding cutbacks and needs to have sufficient funds to meet its contractual obligations towards its staff and to manage any necessary restructure or termination of its services to its clients, including those on whose behalf the Charity holds funds in designated client accounts.

The Reserves Policy sets out in detail the principles which the Board is required to operate in managing the reserves, considering the long-term viability and development of the Charity and its services to its clients, including the establishment of designated reserve for development purposes.

The Trustees have set a designated reserve entitled “Closure Costs” at a minimum level equivalent to at least three months operating costs, taking into account potential costs such as redundancy costs, lease commitments and maternity leave. The required reserves figure is re-calculated every six months, reviewed Page | 9

by the Finance Sub-Group and reported to the Board. As of 31[st] March 2021, this designated reserve stood at £335,000, a £15,000 increase on the previous year's figure.

As of 31st March 2021, designated reserves; Development Fund and Client Benefit Fund stood at £16,377 and £7,773 respectively.

Free reserves as 31[st] March 2021, after allowing for any transfers to and from the designated reserves referred to above, totalled £92,639 compared with £101,868 the previous year.

All reserves are predominantly held on deposit with banks and Building Societies.

Investment Policy

The Charity monies held for operational purposes and clients’ monies will only be invested on an instant access basis with one or more of the four main clearing banks - currently Barclays, HSBC, Lloyds Banking Group and NatWest Group. The maximum amount of the Charity monies held with any one clearing bank should not exceed £1.5million whilst the maximum amount of clients’ monies held with any one clearing bank should not exceed £3.5million. The maximum amount of the Charity and clients’ monies held with any one clearing bank must not exceed £5million.

Non-operational Charity monies can be invested with any financial institution which holds a licence under the Government-backed Financial Services Compensation Scheme (FSCS) up to the limit, currently, £85,000, any investment amount should take account of any potential accrued interest. The term of any FSCS investment should not exceed twelve months.

PLANS FOR FUTURE PERIODS

On 12[th] March 2020, the World Health Organisation declared the outbreak of Covid-19 infection as a pandemic. Later that month, the UK government introduced emergency measures to fight the spread of the virus, including lockdown and social distancing. This has had a major impact on our staff and clients, and the way we are able to work and deliver our services through the pandemic and moving forward.

Our work is seen as a service of critical importance to vulnerable people and throughout the pandemic staff have been designated as essential workers. We have managed to continue all services throughout the pandemic, including the delivery of cash to elderly or disabled people in sheltered schemes, supported housing or their own homes. We have introduced the use of prepayment cards for some clients and will continue to review and see how these can be used further moving forward. Most staff worked remotely throughout the pandemic following government guidance, however both offices remained open to offer essential services and to enable and support staff working remotely. No staff have been furloughed throughout the pandemic.

Staff working remotely and delivering services in a different manner including digitally has required a thorough review of both our IT and phone systems, considering what is required now, making sure they function for staff and the Charity. Our IT and phone systems were robust enough to respond and cope with the change, new working patterns did highlight a need to upgrade our system in some areas. This upgrade

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will be completed through the 21-22 period. Moving forward the Charity wants to take a proactive approach towards the use of technology, and this will form part of our three-year strategy for 2022-2025.

In response to the pandemic and personnel changes within the Charity, our Trustees have decided to refine an updated version of our one-year Business Plan from 2020- 2021, rather than three-year strategy as previously planned. Throughout 2021 -2022 there will be a drive to establish a three-year strategy and business plan for 2022 to 2025.

Our focus in 2021 – 2022 must be on continuing to deliver services in a safe way for staff, volunteers, clients, and trustees. Any development will be driven by the immediate needs of clients, potential clients, and personnel. Then we will start to look at what may be needed in our communities following the easing of emergency measures.

In 2021-22 our key objectives will be:-

  1. to strengthen the organisational governance by continuing to broaden the breadth and depth of knowledge on the Board of Trustees

  2. To strengthen and upgrade the charities IT system.

  3. To develop a three-year strategy and business plan including a digital delivery plan for 2022-2025.

  4. To strengthen and develop the skills and knowledge of staff to continue to meet the changing needs of clients

  5. To finalise the job evaluation and an endeavour to ensure staff continue to receive competitive salaries

  6. To understand the changes the pandemic has created for clients, staff and service delivery and how Money Advice Plus will manage and integrate this into the Charity’s way of working.

  7. To focus on applying for funding that supports and strengthen our current work with a particular focus on

  8. a. Acquiring additional funding for the Financial Support Line for Victims of Domestic Abuse and its casework service, which is run in partnership with Surviving Economic Abuse. Enabling us to continue working with victim-survivors in the future and establishing the Economic Abuse Evidence Form in the debt advice community

  9. b. Seek out new source of funding for our financial capability work including developing and producing training materials

  10. Look to strengthen and enhance the partnerships we have and develop new partnerships that will support this year’s strategy as well the 2022-2025 strategy.

We will be working towards these through to the end of March 2022.

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STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The Charity was established under a Memorandum of Association and Articles of Association in 1995 which established its objects and powers. In 2015 these documents were combined into one Articles of Association document. The articles of association were updated in 2020 to reflex the work that is being undertaken by the Charity at the moment but to also support Money Advice Plus moving forward.

Governance and Management

The Charity is run by the Board of Trustees, who give their time and expertise voluntarily, receiving no benefits from the Charity. The minimum number of Trustees is three and there is no maximum number.

The Board of Trustees is independent from the staff team and focusses on strategic, financial and governance issues. The Board delegates operational issues to the Chief Executive, in accordance with a Delegation of Responsibilities Policy.

Trustees regularly reassess the Board’s skills and knowledge to identify gaps and weaknesses and recruitment is informed by this. Recruitment and induction procedures are in line with recruitment of staff, with a specific focus upon governance and the specific responsibilities of Trustees. Relevant training is provided.

Trustees are recruited in a variety of ways: national recruitment websites, advertising on the website, and via local networks, word of mouth, and direct approach. Potential Trustees are interviewed by two Trustees and the Chief Executive, following receipt of an expression of interest. A recommendation is made to the Board, which makes the final decision.

Trustees can be co-opted to the Board until they are elected at the next Annual General Meeting to serve a period of three years.

There is no maximum period a trustee can serve, but they must be re-elected at the Annual General Meeting after each three year period. Trustees must also be Members and Directors of the charitable company. The Members have guaranteed to contribute a maximum of £1 each in the event of the company being wound up.

The Board meets every two months (currently via Microsoft Teams). Between meetings, if necessary, agenda items are discussed via email and either ratified at the following Board meeting or via email as appropriate.

In 2018 the Board adopted Charity Governance Code, following which they produced a Governance Handbook and Trustee Code of Conduct. Further work is in progress including the updated Charity Governance Code

Outside of Board meetings, sub-groups meet to report and make recommendations to the Board. Each subgroup has ‘Terms of Reference’ and is comprised of at least one Trustee representative, the Chief Executive and other members of staff, as appropriate.

  1. Policy and Governance: ensures that governance of the Charity adopts best practice and makes recommendations to the Board for new and updated policies. Currently meets every two months.

  2. Finance: chaired by the Treasurer. The Chair is a member of the subgroup together with at least one other Trustee. The Finance Manager and Chief Executive attend all meetings and other members of staff attend

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as appropriate. The committee reviews all financial performance against budget, and all other financial matters, including client accounts. Meets at least every two months.

  1. Business Development: deals with all matters related to the continued and diverse funding of the Charity. Meets several times during the year.

  2. Health and Safety: ensures that Health and Safety is proactively monitored, with regular checks and comprehensive procedures. It reviews in detail procedures, risk assessments and ensures H&S compliance. Meets at least quarterly, but more frequently during the pandemic.

  3. Human Resources: ensures that the Charity complies with current legislation and uses best practice in recruitment and employment of staff, trustees and volunteers.

  4. Communications: Is a new subgroup formed over the last year to support the development of the outward profile of the Charity, developing a procedure of responsibility in times of a crisis.

It is the Charity’s practice to engage external consultants as expert resource when needed, particularly in the areas of IT, legal, personnel and finance. The selection process for external experts requires a detailed response to an explicit brief.

Risk management

The Charity reviews all aspects of the organisation including an assessment of the potential risks to the organisation. The Risk Policy, Plan and Register considers all risks and prioritises them appropriately. They encompass funding, financial, compliance and strategic risks as well as operational risks such as loss of data, harm to staff, security and disaster.

The Charity follows an annual strategic timetable which includes reviewing the organisational risk assessment to assess and prioritise all the potential risks to the organisation. The resulting Risk Register informs the annual review of the strategy.

The Charity is aware that many of our clients are vulnerable adults and they are often referred to our service because they are victims of financial abuse. Risk assessments are carried out on every vulnerable adult client referred to us by Adult Social Care. We ensure we minimise risk to members of staff by having a set of safe ways of working rules within our Health and Safety Policy, Safeguarding and other policies and procedures. Staff receive training in Safeguarding with a specific focus on the protection of vulnerable adults and the responsibilities we assume throughout our work, so they can identify problems, know how to manage them including alerting management as appropriate.

The Board receives regular financial reports at Board meetings from the Finance Subgroup ensuring that any adverse trends and divergence from budget and remedial action is put in place in good time. The Charity’s monies and clients’ monies are kept separate and subject to strict procedures and are monitored as an integral part of the annual financial audit as well through the Finance Subgroup.

The Reserves Policy and Closure Costs are reviewed every 6 months by the Finance Subgroup and reported to the Board so that if the closure of the organisation or a major reorganisation was necessary, services to

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clients can be completed in an orderly, professional manner. Closure costs are set aside as a designated reserve.

Health and Safety is proactively addressed, with regular checks and comprehensive procedures which are overseen by the Health and Safety Sub Group.

Because the majority of the Charity’s clients are considered to be vulnerable people, all staff (paid and volunteer) and Trustees are required to have an Enhanced Disclosure and Barring Service check.

There are robust case supervision systems to check and monitor the quality of advice. The Charity is audited by the Advice Quality Standard. The most recent being in September 2020 and the next will be in July 2022. Policies and Procedures are reviewed regularly, according to a schedule. Additionally, good practice is continually developed by client and staff input and by sharing through regular team meetings.

REFERENCE AND ADMINISTRATIVE DETAILS

Status

Money Advice and Community Support Service (MACS), trading as Money Advice Plus, is a charitable company limited by guarantee (number 3029782), incorporated on 7 March 1995 and registered as a Charity (number 1045340) on 29 March 1995 and regulated by the Financial Conduct Authority.

Financial year end 31 March Working Name Money Advice Plus Trustees (who are also the Directors) Nikky Myers Chair Stewart Beamont Deputy Chair Robert Phillips Treasurer (resigned 21.1.21) Terry Mase Trustee Jonathan Hyman Treasurer (with effect from 22.1.21) Andrew Berry (resigned 14.5.20) Asif Chaudhery Olivia Hobson (appointed 9.7.20) Helen Gale (co-opted 9.7.20) (resigned 28.09.20) Gemma Dunn (appointed 10.9.20) Phil Hall (appointed 10.9.20)

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Chief Executive Margaret Carey (resigned 31.12.20) Karen Perrier (appointed 1.1.21) Company Secretary Jackie Grigg Management Andrea Finch Client Services Manager Karen Perrier Client Services Manager (resigned client services manager 31.12.20) Sophy Williams Client Services Manager Elaine Sammarco Client Services Manager (appointed 02.12.20) Jackie Grigg Business Development & Operations Manager Rachel Carpenter Finance Manager (appointed 01.10.20) Patrons David Lepper Caroline Lucas MP Peter Kyle MP Stephen Lloyd Registered Office Tisbury Road Offices, Hove Town Hall, Tisbury Road, Hove, BN3 3BQ Operations Addresses Tisbury Road Offices, Hove Town Hall, Tisbury Road, Hove, BN3 3BQ 2[nd] Floor, 182 – 184 Terminus Road, Eastbourne, BN21 3BB

The Hove offices are co-located with Brighton & Hove Citizen’s Advice and East Sussex Credit Union. This arrangement increases a wider knowledge of all three organisations in the general public including potential clients.

Website http://www.moneyadviceplus.com Email info@moneyadviceplus.org.uk Bankers Barclays Bank Plc, North Street, Brighton, East Sussex, BN1 1SF Independent Auditor Plummer Parsons, 18 Hyde Gardens, Eastbourne, BN21 4PT Health and Safety Competent Person John Rodway, Corporate and Public Safety Ltd Insurers:

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Quality Assurance:

EXEMPTIONS FROM DISCLOSURE

There are no exemptions from disclosure.

STATEMENT OF TRUSTEES RESPONSIBILITIES

The Trustees (who are also the directors of Money Advice and Community Support Service for the purposes of company law) are responsible for preparing a Trustees’ annual report and 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 charitable company and of the incoming resources and application of resources, including the income and expenditure of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Charity’s website. Legislation in the United Kingdom governing the preparation and dissemination may differ from legislation in other jurisdictions.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

In so far as the Trustees are aware at the time of approving our Trustees’ annual report:

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their report, of which the group’s auditor is unaware, and

FUNDS HELD AS CUSTODIAN TRUSTEES ON BEHALF OF OTHERS

The Charity manages funds arising from money management services provided for the Charity’s clients primarily under the terms of the Supporting People contract of Brighton and Hove Council.

These funds amounted to £2,115,983 as of 31[st] March 2021. This compares with £1,615,728 in the previous year. The funds of each client are managed in separate accounts maintained in the Charity’s accounting system. As part of our Business Continuity Plan client account data is backed up daily to a separate system.

The Charity complies with the Financial Conduct Authority (FCA) relevant regulations and is classified as a CASS small debt management firm & is required to follow FCA handbook CASS 11 rules.

Client monies are primarily deposited at Barclays Bank with term deposits also placed with a limited number of other banks and building societies approved by the Finance Subgroup.

Financial controls logs regarding client monies are maintained and a report prepared by management for review by the Finance Subgroup at least every three months.

Approved by the Board of Trustees on 9 December 2021

and signed on their behalf by:

……………………………………………..

Nikky Myers, Chair

Tisbury Road Offices, Hove Town Hall, Tisbury Road, BN3 3BQ

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MONEY ADVICE AND COMMUNITY SUPPORT SERVICE MONEY ADVICE PLUS INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF MONEY ADVICE AND COMMUNITY SUPPORT SERVICE

Opinion

We have audited the financial statements of Money Advice and Community Support Service (the ‘charity’) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

MONEY ADVICE AND COMMUNITY SUPPORT SERVICE MONEY ADVICE PLUS INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF MONEY ADVICE AND COMMUNITY SUPPORT SERVICE

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

The trustees have elected for the financial statements to be audited in accordance with the Charities Act 2011 rather than the Companies Act 2006. Accordingly, we have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the regulations made under section 154 of that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. The extent to which our procedures are capable of detecting such irregularities is detailed below:

Based on our understanding of the charity and its activities, and through discussion with the trustees and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to the Companies Act 2006, Charities Act 2011, Data Protection Act, GDPR, and other relevant legislation.

We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, being FRS 102 and Charities SORP (FRS 102) (effective January 2019). We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

MONEY ADVICE AND COMMUNITY SUPPORT SERVICE MONEY ADVICE PLUS INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF MONEY ADVICE AND COMMUNITY SUPPORT SERVICE

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase income or reduce expenditure, related party transactions, management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the engagement team included:

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

MONEY ADVICE AND COMMUNITY SUPPORT SERVICE MONEY ADVICE PLUS INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF MONEY ADVICE AND COMMUNITY SUPPORT SERVICE

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the Charityʼs trustees, as a body, in accordance with section 144 of the Charities Act 2011 and the regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Plummer Parsons

20 December 2021

Chartered Accountants Statutory Auditor

18 Hyde Gardens Eastbourne East Sussex BN21 4PT

Plummer Parsons is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.

MONEY ADVICE AND COMMUNITY SUPPORT SERVICE MONEY ADVICE PLUS STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2021

Current financial year
Unrestricted Unrestricted
Restricted
funds
funds
funds
general
designated
2021
2021
2021
Notes
£
£
£
Income and endowments from:
Donations and legacies
3
2,618
-
-
Charitable activities
Money Management
4
633,844
-
-
Money Advice
4
356,501
-
288,383
Other trading activities
5
37
-
-
Investments
6
482
-
-
Other income
7
5,006
-
-
Total income
998,488
-
288,383
Expenditure on:
Charitable activities
Money Management
8
610,641
-
-
Money Advice
8
387,469
-
290,938
Total charitable expenditure
998,110
-
290,938
Net gains/(losses) on investments
12
11,476
-
-
Net incoming/(outgoing) resources
before transfers
11,854
-
(2,555)
Gross transfers between funds
(21,083)
15,000
6,083
Net movement in funds
(9,229)
15,000
3,528
Fund balances at 1 April 2020
101,868
344,150
-
Fund balances at 31 March 2021
92,639
359,150
3,528		 Total
2021
£
2,618
633,844
644,884
37
482
5,006
1,286,871
610,641
678,407
1,289,048
11,476
9,299
-
9,299
446,018
455,317		 Total
2020
£
3,373
567,891
641,131
2,344
3,562
-
1,218,301
488,900
697,258
1,186,158
(437)
31,706
-
31,706
414,312
446,018

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

MONEY ADVICE AND COMMUNITY SUPPORT SERVICE MONEY ADVICE PLUS STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2021

Prior financial year

Unrestricted Unrestricted
Restricted
funds
funds
funds
general
designated
2020
2020
2020
Notes
£
£
£
Income and endowments from:
Donations and legacies
3
3,373
-
-
Charitable activities
Money Management
4
567,891
-
-
Money Advice
4
298,851
-
342,280
Other trading activities
5
2,344
-
-
Investments
6
3,562
-
-
Total income
876,021
-
342,280
Expenditure on:
Charitable activities
Money Management
8
488,900
-
-
Money Advice
8
348,553
-
348,705
Total charitable expenditure
837,453
-
348,705
Net gains/(losses) on investments
12
(437)
-
-
Net incoming/(outgoing) resources before
transfers
38,131
-
(6,425)
Gross transfers between funds
(34,198)
27,773
6,425
Net movement in funds
3,933
27,773
-
Fund balances at 1 April 2019
97,935
316,377
-
Fund balances at 31 March 2020
101,868
344,150
-		 Total
2020
£
3,373
567,891
641,131
2,344
3,562
1,218,301
488,900
697,258
1,186,158
(437)
31,706
-
31,706
414,312
446,018

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

MONEY ADVICE AND COMMUNITY SUPPORT SERVICE MONEY ADVICE PLUS BALANCE SHEET

AS AT 31 MARCH 2021

Notes
Fixed assets
Tangible assets
13
Investments
14
Current assets
Debtors
16
Cash at bank and in hand
Creditors: amounts falling due within
one year
17
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
20
Unrestricted funds
Designated funds
21
General unrestricted funds		 2021
£
148,392
338,221
486,613
(91,804)
359,150
92,639		 £
1,253
59,255
60,508
394,809
455,317
3,528
451,789
455,317		 2020
£
128,055
333,620
461,675
(65,272)
344,150
101,868		 £
1,881
47,734
49,615
396,403
446,018
-
446,018
446,018

MONEY ADVICE AND COMMUNITY SUPPORT SERVICE MONEY ADVICE PLUS BALANCE SHEET (CONTINUED)

AS AT 31 MARCH 2021

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2021, although an audit has been carried out under section 144 of the Charities Act 2011.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.

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

The financial statements were approved by the Trustees on 9 December 2021

Ms N Myers Trustee

Company Registration No. 03029782

MONEY ADVICE AND COMMUNITY SUPPORT SERVICE MONEY ADVICE PLUS STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2021

Notes
Cash flows from operating activities
Cash generated from/(absorbed by)
operations
25
Investing activities
Purchase of tangible fixed assets
Purchase of investments
Investment income received
Net cash generated from investing
activities
Net cash used in financing activities
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2021
£
-
(45)
482		 £
4,164
437
-
4,601
333,620
338,221		 2020
£
(1,881)
(40)
3,562		 £
(18,977)
1,641
-
(17,336)
350,956
333,620

MONEY ADVICE AND COMMUNITY SUPPORT SERVICE MONEY ADVICE PLUS NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

Charity information

Money Advice and Community Support Service is a private company limited by guarantee incorporated in England and Wales. The registered office is Tisbury Road Offices, Hove Town Hall, Tisbury Road, Hove, East Sussex, BN3 3BQ.

1.1 Accounting convention

The accounts have been prepared in accordance with the charitable company'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)” (as amended for accounting periods commencing from 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value, where appropriate. The principal accounting policies adopted are set out below.

1.2 Going concern

At the date of this report, there exists considerable uncertainty regarding the potential impact of the Coronavirus and the economic consequences, both within the U.K. and overseas, which may result from government policies to contain the spread. The duration and geographical extent of any possible lockdown or future government policies are unknown. Whilst we are unable to predict what the economic consequences may be and the impact on the charity’s future ability to continue trading, we have continued to use the going concern basis as appropriate in the preparation of these accounts.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Income is the amount derived from ordinary activities, and stated after trade discounts, other sales taxes and net of VAT.

Cash donations are recognised on receipt. Other donations and legacies 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.

MONEY ADVICE AND COMMUNITY SUPPORT SERVICE MONEY ADVICE PLUS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

Income from grants and contracts is recognised when the charity has entitlement to the funds, any performance conditions have been met, it is probable that income will be received and the amount can be measured reliably and is not deferred.

Income received in advance of the provision of a specified service is deferred and included in creditors until the criteria for income recognition are met and, where entitlement arises before income is received, the income is accrued.

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.

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.

Resources expended are allocated to a particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration on each activity, comprising the salary and overhead costs of the central function, is apportioned on a basis which is an estimate, based on staff time and staff costs, of the amount attributable to each activity.

1.6 Tangible fixed assets

Tangible fixed assets costing more than £1,000 are capitalised and are initially measured at cost, including any incidental expenses of acquisition, thereafter being 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:

Equipment 33.3% on cost

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 net income/(expenditure) for the year.

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.8 Impairment of fixed assets

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).

1.9 Cash and cash equivalents

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.

MONEY ADVICE AND COMMUNITY SUPPORT SERVICE MONEY ADVICE PLUS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

1.10 Financial instruments

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

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.

Bank deposits are made to ensure adequate liquidity and are placed for a maximum term of 12 months.

Basic financial liabilities

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

A provision had been established with regards to services provided to residents of Housing Associations. The provision would be utilized in the event that the relationship with a Housing Association ceases and the charity believes it is in the interests of individual residents that casework, such as negotiation with all the creditors of individual residents is completed.

This provision was established in the 2014 accounts and was based on the number of engaged case at an average hourly rate for the estimated time remaining. Given that at 31 March 2020 the relationship with various new associates was continuing to find future case work, following a review, it was considered that no provision was now required.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received, if considered material.

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.

MONEY ADVICE AND COMMUNITY SUPPORT SERVICE MONEY ADVICE PLUS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. The charity acts as agent in collecting and paying over employee pension contributions and both employer and employee make contributions under the scheme.

1.13 Funds held on behalf of clients

The Charity’s objects are to provide advice, counsel and assistance according to their needs to people in the United Kingdom who are having difficulty managing their financial affairs because of illness, poverty, or old age, and to make such representations on their behalf as are relevant to these objects. In meeting these objectives an important activity the charity undertakes for clients in Brighton and Hove and in East and West Sussex is assisting with the management of the income and expenditure and safekeeping of the funds. Clients funds are held by the charity in an accounting system separate from the accounting system for the charity’s own funds.

The funds are placed with banks and building societies as designated client accounts supported by documents in conformity with the requirements of the Financial Conduct Authority.

Further details regarding the management of these funds are contained in the Funds Held as Custodian Trustees on behalf of clients and Investment Policy sections of the Trustees Report.

In the year to 31 March 2021 income received and paid into the client accounts totalled £4,403,247 (2020: £3,851,179) and payments out of the accounts totalled £4,020,881 (2020: £3,720,860).

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted Unrestricted
funds funds
general general
2021 2020
£ £
Donations and gifts 2,618 3,373

MONEY ADVICE AND COMMUNITY SUPPORT SERVICE MONEY ADVICE PLUS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

4 Charitable activities

Money
Management
Money Advice
£
£
Money Management income
633,844
-
Money Advice income
-
644,884
Other income
-
-
633,844
644,884
Analysis by fund
Unrestricted funds - general
633,844
356,501
Restricted funds
-
288,383
633,844
644,884
For the year ended 31 March 2020
Unrestricted funds - general
567,891
298,851
Restricted funds
-
342,280
567,891
641,131
Grant income
Brighton Supporting People (BHCC)
600,000
-
Individual contracts (BHCC & E & WSCC)
24,966
-
Money Guardians (BHCC)
8,878
-
Advice to Council Tenants (BHCC)
-
80,000
Moneyworks (BHCC)
-
52,561
MASDAP (MAS)
-
126,388
Money Advice for Wellbeing (CCG)
-
50,974
Housing Associations
-
69,770
Paragon Housing
-
35,000
Warmth for Well Being
-
21,000
MacMillan
-
23,985
Advice Matters (BHCC)
-
32,465
DEAP (DCMS, Home Office)
-
87,035
We Are Digital (L&Q)
65,605
Other
-
101
633,844
644,884		 Total
2021
£
633,844
644,884
-
1,278,728
990,345
288,383
1,278,728
600,000
24,966
8,878
80,000
52,561
126,388
50,974
69,770
35,000
21,000
23,985
32,465
87,035
65,605
101
1,278,728		 Total
2020
£
567,891
638,131
3,000
1,209,022
866,742
342,280
1,209,022
536,979
19,964
10,945
80,000
54,206
103,996
57,149
36,650
28,000
-
26,493
31,045
154,641
62,236
6,718
1,209,022

MONEY ADVICE AND COMMUNITY SUPPORT SERVICE MONEY ADVICE PLUS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

4 Charitable activities

(Continued)

Grant income in the year includes deferred income released during the year of £nil (2020: £3,000) brought forward from previous years.

5 Other trading activities

Unrestricted Unrestricted
funds funds
general general
2021 2020
£ £
Membership & training 37 2,344

6 Investments

Unrestricted Unrestricted
funds funds
general general
2021 2020
£ £
Income from listed investments 44 265
Interest receivable 438 3,297
482 3,562
Other income
Unrestricted Total
funds
general
2021 2020
£ £
Other income 5,006 -

7 Other income

MONEY ADVICE AND COMMUNITY SUPPORT SERVICE MONEY ADVICE PLUS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

8 Charitable activities

Money
Management
2021
£
Staff costs
531,601
Depreciation and
impairment
627
Property Costs
19,488
Office Overheads
39,116
590,832
Share of support costs
(see note 9)
7,459
Share of governance
costs (see note 9)
12,350
610,641
Analysis by fund
Unrestricted funds -
general
610,641
Restricted funds
-
610,641		 Money
Management
2021
£
Staff costs
531,601
Depreciation and
impairment
627
Property Costs
19,488
Office Overheads
39,116
590,832
Share of support costs
(see note 9)
7,459
Share of governance
costs (see note 9)
12,350
610,641
Analysis by fund
Unrestricted funds -
general
610,641
Restricted funds
-
610,641		 Money
Advice
2021
£
610,913
-
27,118
27,499
665,530
5,307
7,570
678,407
387,469
290,938
678,407		 Total
2021
Money
Management
2020
£
£
1,142,514
420,965
627
3,172
46,606
12,833
66,615
34,075
1,256,362
471,045
12,766
6,679
19,920
11,176
1,289,048
488,900
998,110
488,900
290,938
-
1,289,048
488,900		 Total
2021
Money
Management
2020
£
£
1,142,514
420,965
627
3,172
46,606
12,833
66,615
34,075
1,256,362
471,045
12,766
6,679
19,920
11,176
1,289,048
488,900
998,110
488,900
290,938
-
1,289,048
488,900		 Money
Advice
2020
£
622,126
-
35,098
27,910
685,134
5,274
6,850
697,258
348,553
348,705
697,258		 Total
2020
£
1,043,091
3,172
47,931
61,985
2021
£
531,601
627
19,488
39,116
590,832
7,459
12,350
610,641
610,641
-
610,641		 2020
£
420,965
3,172
12,833
34,075
471,045
6,679
11,176
488,900
488,900
-
488,900
1,156,179
11,953
18,026
1,186,158
837,453
348,705
1,186,158

MONEY ADVICE AND COMMUNITY SUPPORT SERVICE MONEY ADVICE PLUS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

9 Support costs

Other finance costs
Client interest & costs
Marketing
Security
Other insurance
Audit fees
Accountancy
Legal and professional
Trustees training &
expenses
Annual report
Analysed between
Charitable activities		 Support
costs
Governance
costs
£
£
1,186
-
8,212
-
-
-
-
-
3,368
-
-
8,520
-
2,960
-
7,597
-
180
-
663
12,766
19,920
12,766
19,920		 2021
£
1,186
8,212
-
-
3,368
8,520
2,960
7,597
180
663
32,686
32,686		 Support
costs
Governance
costs
£
£
1,119
-
2,872
-
(239)
-
3,614
-
4,587
-
-
8,400
-
4,260
-
3,301
-
1,480
-
585
11,953
18,026
11,953
18,026		 2020
£
1,119
2,872
(239)
3,614
4,587
8,400
4,260
3,301
1,480
585
29,979
29,979

Governance costs includes payments to the auditors of £5,400 for audit fees, £3,120 for other assurance engagements and £2,960 for non-audit services (2020- £5,400, £3,000 and £4,260 respectively) .

10 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year (2020: 3 trustees were reimbursed £604 for travel and subsistence expenses.)

11 Employees

The average monthly number of FTE employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs		 2021
Number
40
2021
£
1,018,694
79,557
44,263
1,142,514		 2020
Number
37
2020
£
930,868
71,093
41,130
1,043,091

MONEY ADVICE AND COMMUNITY SUPPORT SERVICE MONEY ADVICE PLUS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

11 Employees

(Continued)

The key management personnel comprise the trustees and the Chief Executive Officer, who have authority and responsibility for planning, directing and controlling the activities of the charity. The total employee benefits of the key management personnel were £44,352 (2020: £42,683).

There are no employees whose annual remuneration was £60,000 or more.

The average monthly number of employees during the year was 53 (2020: 48).

Included within wages costs are other staff costs incurred totalling £12,309 (2020: £31,262). These other staff costs include, but are not limited to, expenditure relating to recruitment, staff training, staff travel and staff welfare.

12 Net gains/(losses) on investments

Unrestricted Unrestricted
funds funds
general general
2021 2020
£ £
Revaluation of investments 11,476 (437)
13 Tangible fixed assets
Equipment
£
Cost
At 1 April 2020 25,487
At 31 March 2021 25,487
Depreciation and impairment
At 1 April 2020 23,607
Depreciation charged in the year 627
At 31 March 2021 24,234
Carrying amount
At 31 March 2021 1,253
At 31 March 2020 1,881

MONEY ADVICE AND COMMUNITY SUPPORT SERVICE MONEY ADVICE PLUS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

14 Fixed asset investments

Cost or valuation
At 1 April 2020
Additions
Valuation changes
At 31 March 2021
Carrying amount
At 31 March 2021
At 31 March 2020
15
Financial instruments
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
16
Debtors
Amounts falling due within one year:
Trade debtors
Prepayments and accrued income
17
Creditors: amounts falling due within one year
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 Listed
investments
£
47,734
45
11,476
59,255
59,255
47,734
2021
2020
£
£
59,255
47,734
2021
2020
£
£
107,746
109,159
40,646
18,896
148,392
128,055
2021
2020
£
£
20,508
17,678
10,015
16,598
7,732
7,764
53,549
23,232
91,804
65,272

MONEY ADVICE AND COMMUNITY SUPPORT SERVICE MONEY ADVICE PLUS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

18 Client accounts

Client accounts
Barclays Bank
Scottish Widows
Cash in hand
Other (including cash in transit)		 2021
£
1,996,385
75,000
1,000
43,598
2,115,983		 2020
£
1,615,683
-
-
45
1,615,728

19 Retirement benefit schemes

Defined contribution schemes

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 charge to profit or loss in respect of defined contribution schemes was £44,263 (2020: £41,130). This has been allocated against the applicable fund in line with the allocation of staff costs based on time spent.

Restricted funds The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes: Movement in funds
Movement in funds		 Incoming
Resources
Transfers
Balance at
Incoming
Resources
Transfers
Balance at		 resources
expended
1 April 2020
resources
expended
31 March 2021		 £
£
£
£
£
£
£
£		 Macmillan
26,493
(26,493)
-
-
23,985
(20,457)
-
3,528		 Debt Advice (MAS)
103,996
(102,889)
(1,107)
-
126,388
(127,177)
789
-		 B&H CCG
57,150
(63,610)
6,460
-
50,974
(50,974)
-
-		 DEAP
154,641
(155,713)
1,072
-
87,036
(92,330)
5,294
-		 342,280
(348,705)
6,425
-
288,383
(290,938)
6,083
3,528		 The nature and purpose of each restricted fund is as follows: Macmillan
: Provides welfare benefits advice and casework to people in Sussex affected by cancer.		 Macmillan
: Provides welfare benefits advice and casework to people in Sussex affected by cancer.		 Debt Advice (MASDAP)
: Provides short term advice and casework on money matters to residents of Brighton & Hove.		 Debt Advice (MASDAP)
: Provides short term advice and casework on money matters to residents of Brighton & Hove.		 B&H CCG
: Provides money advice to patients of a hospital in Brighton and for a short period following their discharge.		 B&H CCG
: Provides money advice to patients of a hospital in Brighton and for a short period following their discharge.		 DEAP (DCMS & Home Office)
: Telephone based national service providing money advice to survivors and victims of domestic abuse, and training to relevant parties		 DEAP (DCMS & Home Office)
: Telephone based national service providing money advice to survivors and victims of domestic abuse, and training to relevant parties		 on economic abuse. The transfers represent contributions by these projects towards general costs paid from unrestricted funds, as computed by the Trustees.
20

MONEY ADVICE AND COMMUNITY SUPPORT SERVICE MONEY ADVICE PLUS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

21 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Balance at
1 April 2019
£
Closure costs
295,000
Client benefit fund
5,000
Development fund
16,377
316,377		 Transfers
Balance at
1 April 2020
£
£
25,000
320,000
2,773
7,773
-
16,377
27,773
344,150		 Transfers
Balance at
31 March 2021
£
£
15,000
335,000
-
7,773
-
16,377
15,000
359,150		 Transfers
Balance at
31 March 2021
£
£
15,000
335,000
-
7,773
-
16,377
15,000
359,150
359,150

The nature and purpose of each designated fund is as follows:

Closure Costs

This fund is for the costs, not financed by grants and contracts, which the charity would incur in the event of the loss of funding that would result in the Trustees either having to close the charity or undertake a radical restructure.

Client Benefit fund. This fund contains monies raised by staff to provide specific help to clients in time of particular need.

Development fund. This fund is set aside for investment in updated accounting systems, replacement of obsolete ICT equipment and the development of the charity’s money advice and handing services.

The transfers represent increases in fund balances agreed upon by the Trustees.

Total 2020 £ 1,881 47,734 396,403 446,018
Restricted funds 2020 £ - - - -
Designated funds 2020 £ - - 344,150 344,150
Unrestricted funds 2020 £ 1,881 47,734 52,253 101,868
Total 2021 £ 1,253 59,255 394,809 455,317
Restricted funds 2021 £ - - 3,528 3,528
Designated funds 2021 £ - - 359,150 359,150
Unrestricted funds 2021 £ 1,253 59,255 32,131 92,639
Analysis of net assets between funds Fund balances at 31 March 2021 are represented by: Tangible assets Investments Current assets/(liabilities)
22

MONEY ADVICE AND COMMUNITY SUPPORT SERVICE MONEY ADVICE PLUS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

23 Operating lease commitments

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:

Within one year
Between two and five years		 2021
£
42,000
14,167
56,167		 2020
£
42,000
90,167
132,167

The operating lease commitments relate to the rent of offices in Eastbourne and Hove. The leases run for 5 and 10 years respectively.

Rent paid for the two offices during the year was £42,000 (2020: £42,000).

24 Related party transactions

There were no disclosable related party transactions during the year (2020- none).

25
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Fair value gains and losses on investments
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase) in debtors
Increase in creditors
(Decrease)/increase in provisions
Cash generated from/(absorbed by) operations		 2021
£
9,299
(482)
(11,476)
627
(20,336)
26,532
-
4,164		 2020
£
31,706
(3,562)
437
3,172
(51,657)
11,927
(11,000)
(18,977)

26 Analysis of changes in net funds

The charity had no debt during the year.