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2021-03-31-accounts

Charity Registration No. 1049996

Company Registration No. 3108844 (England and Wales)

KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU COMPANY LIMITED BY GUARANTEE

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

KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU COMPANY LIMITED BY GUARANTEE LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr A F Gilmore Ms A Dooley Mr T Lees (Appointed 25 November 2020) Mrs L Mooney Mr C Kelsall (Appointed 27 October 2021) Secretary and Chief Officer Mr B Gouldson Charity number 1049996 Company number 3108844 Registered office 142 Cherryfield Drive Kirkby Merseyside L32 8RX Independent examiner Peter Taaffe FCA CTA DChA BWM Castle Chambers 43 Castle Street Liverpool L2 9SH Solicitors Maxwell Hodge 26 Sherborne Square Huyton Liverpool L36 9UR

KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU COMPANY LIMITED BY GUARANTEE CONTENTS

Page
Trustees' report 1 - 7
Statement of trustees' responsibilities 8
Independent examiner's report 9
Statement of financial activities 10 - 11
Balance sheet 12
Statement of cash flows 13
Notes to the accounts 14 - 29

KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 MARCH 2021

The trustees present their report and financial statements for the year ended 31 March 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's memorandum and articles of association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (as amended for accounting periods commencing from 1 January 2016).

Objectives and activities

The charity's purposes, as set out in the objects contained in the Company's Memorandum of Association, are to promote any charitable purpose for the benefit of the whole community of Knowsley ("the area of benefit") by the advancement of education, the protection of health and the relief of poverty, sickness and distress.

The charity's objects are defined as above. Our aims are focused on:

Our service provides free, independent, confidential and impartial advice to everyone on their rights and responsibilities. We value diversity, promote equality and challenge discrimination.

The charity has developed its own Mission Statement to reflect more accurately its purpose and role:

Citizens Advice Knowsley's vision is to improve the lives of Knowsley residents through advice, empowerment and volunteering. Our values are to focus on clients and quality of advice, achieve results, continuously improve, promote equality and fairness, value each other and work together.

Ensuring our work delivers our aims

We review our aims, objectives and activities each year. The annual review seeks to examine our achievements and outcome. Together with the success of individual key projects and the benefits that have been born from them. In carrying out the review we are ensuring that that our aims, objectives and activities are in line with our stated purpose.

Our main objectives for the year have been developing our service so that it really meets the needs of the clients we are trying to support. Key activities have included:

Public benefit

Our main activities and who we try to help are described above. All our charitable activities focus on providing the advice people need for the problems they face and are undertaken specifically to provide public benefit. The board of trustees have had due regard to the Charity Commission guidance on public benefit and have complied with the duty in section 4 of the Charities Act 2011.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (CONTINUED}(INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 MARCH 2021

Responsibility towards the environment

Knowsley District Citizens Advice Bureau aims to mIrnmIse its impact on the environment and has implemented an organisational environmental policy to ensure that all activities place an increased emphasis on the environmental impact of our actions.

Achievements and performance

During this year, we assisted 3959 unique clients with 27,651 issues. Welfare Benefits accounted for almost 65% of all issues with money advice accounting for 25% of issues. There was also a large increase in the number of employment enquiries, due to the uncertainty as a result of the Covid-19 pandemic.

Throughout this period we adapted our service to provide more telephone and e-mail advice, due to the restrictions caused by the Covid-19 pandemic.

Due to the implementation of our Business Continuity Plan and the commitment of staff, we were able to move to remote working with very little disruption to our services with the exception of not being able to provide on­ site appointments for clients.

KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 MARCH 2021

--

Key Statistics

Summar
**Cliontr ** 3,959
Quick client contacts 2,246
**Issues ** 27,651
Activltios 10,303
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KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021

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Financial review

The charity recorded a surplus of £28,053 for the year (2020 - deficit £52,720). This has stabilised reserves after two years of deficit expenditure.

During the 2020/21 year, Citizens Advice Knowsley was successful obtaining funds to support the technology required by paid staff and volunteers to operate services remotely due to the Covid-19 pandemic. This included investment in a new telephony system which will allow more remote activities to be carried out and video facilities for clients who require this service.

Funding for the year was largely as expected, with the addition of New Horizons funding through the European Social Fund to provide employability skills training and volunteer development support.

Trustees are aware that there will be increased pressure on resources and are working with senior management to secure new and existing funding to enable Citizens Advice Knowsley to provide a much needed service.

-4-

KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021

Reserves policy

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to six months, expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity's current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

Risk management

Systems and procedures have been established to identify, monitor and manage the risks that Knowsley Citizens Advice faces. Trustees and the senior management team periodically review and update risks and mitigating actions.

Citizens Advice Knowsley operates under a risk management strategy agreed by trustees and periodically reviews and updates a risk register to reflect the current risks we are exposed to with a view to monitoring and mitigating major risks.

The Board ideally would like to be able to call on a 6-month running costs in the event of the organisation ceasing operations. As required in its Memorandum paragraph 3.19, the organisation has the power to invest and deposit funds in any lawful manner whilst having regard to the suitability of investments and the need for diversification.

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management

The charity is a company limited by guarantee (3108844) and is governed by its Memorandum and Articles of Association, as amended by special resolution dated 22 July 2020. The registered name of the charity is Knowsley District Citizens Advice Bureau (1049996) and from January 2004, the charity has used the operating name of Citizens Advice Knowsley.

The trustees, who are also the directors for the purpose of company law, and who served during the year were:

Mr AF Gilmore Mrs E Kellard (Resigned 27 October 2021) Ms A Dooley MrT Lees (Appointed 25 November 2020) Mrs L Mooney Mr C Kelsall (Appointed 27 October 2021)

Trustees are recruited in line with the terms laid out in the Bureau's Articles of Association. A term of office is 3 years and trustees may be re-elected.

Knowsley Metropolitan Borough Council annually nominates an elected member to the Board of Trustees.

Cllr L Mooney (appointed 27 November 2019)

Trustees can be elected at the Annual General Meeting, nominated by member organisations or co-opted by the Board, provided that the total number of co-opted and nominated trustees does not exceed one third of the total number of trustees.

New trustees meet with the Chair and Chief Officer for an induction session and all trustees undertake ongoing training and development as appropriate to their role.

The Citizens Advice internet site www.bmis.org.uk contains designated pages to support trustees in their roles.

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up. The trustees are covered by trustee indemnity insurance.

Remuneration of Key Management

Key management remuneration is set using guidance from the National Association. Salaries are reviewed on an annual basis in line with roles and responsibilities.

-6-

KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 MARCH 2021

Organisational structure

Citizens Advice Knowsley is a member of Citizens Advice, the operating name of the National Association of Citizens Advice Bureaux, which provides a framework for standards of advice and casework management as well as monitoring progress against these standards.

Knowsley District Citizens Advice Bureau is governed by the Board of Trustees who:

Set the policy of the charity

Responsibility for day to day management matters and implementation of policy is delegated to the Chief Officer, within a clearly understood framework for strategic control.

The following Bureau personnel attend trustee meetings in a non-voting capacity:

Brian Gouldson, Chief Officer Annmarie Bradley, Office Administrator Barbara Shepherd, Volunteer Representative

Trustee minutes, excluding confidential matters, are circulated to all Bureau Advice sites for the attention of all volunteers and employees and are sent to Citizens Advice.

Contribution of Volunteers and Paid Staff

The charity's success could not have been achieved without the hard work and dedication of volunteers and staff. The Trustee Board and senior management recognise the tremendous contribution made by the charity's volunteers in advising the public and administering the service without which the service could not operate. Throughout 2020/21 the service employed 34 paid workers (31.2 FTEs) and 11 volunteers.

Volunteers represent the indispensable core of the service for without them there would not be a Citizens Advice service. The volunteers contribute, on average, 56 hours per week. Their value is inadequately expressed in monetary terms. Indeed, volunteers bring many skills to the service and very often the experience gained helps individuals return to full employment. During 2020/21 3 volunteers left to take up external work.

Equal opportunities

Knowsley District Citizens Advice Bureau recognises the positive value of diversity promotes equality and challenges discrimination. The charity welcomes volunteers and employees from all parts of the community, particularly under-represented groups.

We support the Citizens Advice equality, diversity and inclusion goals and have incorporated these in with all aspects of business planning.

The trustees' report was approved by the Board of Trustees.

Mr AF Gilmore Trustee Dated: .. L 2 .[/ / ] .11. I ... .f:

KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU COMPANY LIMITED BY GUARANTEE STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2021

The trustees, who are also the directors of Knowsley District Citizens Advice Bureau 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:

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. 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.

KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU COMPANY LIMITED BY GUARANTEE INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU

I report to the trustees on my examination of the financial statements of Knowsley District Citizens Advice Bureau (the charity) for the year ended 31 March 2021.

This report is made solely to the charity's trustees, as a body, in accordance with Section 145 of the Charities Act 2011. My examination has been undertaken so that I might state to the charity's trustees those matters I am required to state to them in an Independent Examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for my examination, for this report, or for the opinions I have formed.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity's financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charity's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should drawn in this report in order to enable a proper understanding of the financial statements to be reached. 1J {e,l /c;.c,_ p

Mr Peter Taaffe FCA CTA DChA

BWM

Chartered Accountants Castle Chambers 43 Castle Street Liverpool L2 9SH \ Dated . *J.,..k.J *

KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU COMPANY LIMITED BY GUARANTEE STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2021

Current financial year
Income and endowments from:
Donations and legacies
Charitable activities
Investments
Other income
Total income
Expenditure on:
Charitable activities
Net income/ (expenditure) for the
year
Transfers between funds
Net movement in funds
Fund balances at 1 April 2020
Fund balances at 31 March 2021
Notes
3
4
5
6
7
Unrestricted Unrestricted
funds
funds
general designated
2021
2021
£
£
790,383
815
9,437
800,635
771,401
29,234
77,772
(79,722)
107,006
(79,722)
306,623
337,780
413,629
258,058
Restricted
funds
2021
£
224,338
224,338
225,519
(1,181)
1,950
769
769		 Total
2021
£
1,014,721
815
9,437
1,024,973
996,920
28,053
28,053
644,403
672,456		 Total
2020
£
10,200
871,904
806
11,323
894,233
946,953
(52,720)
(52,720)
697,123
644,403

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.

-10-

KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU COMPANY LIMITED BY GUARANTEE STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2021

Prior financial year
Unrestricted Unrestricted
Income and endowments from:
Donations and legacies
Charitable activities
Investments
Other income
Total income
Expenditure on:
Charitable activities
Net income/ (expenditure) for the year
Transfers between funds
Net movement in funds
Fund balances at 1 April 2019
Fund balances at 31 March 2020
Notes
3
4
5
6
7
funds
funds
general designated
2020
2020
£
£
10,200
609,451
806
11,323
631,780
680,474
(48,694)
25,696
(29,722)
(22,998)
(29,722)
329,621
367,502
306,623
337,780
Restricted
funds
2020
£
262,453
262,453
266,479
(4,026)
4,026		 Total
2020
£
10,200
871,904
806
11,323
894,233
946,953
(52,720)
(52,720)
697,123
644,403

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.

KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU COMPANY LIMITED BY GUARANTEE BALANCE SHEET

AS AT 31 MARCH 2021

2021
Notes
£
£
Fixed assets
Tangible assets
11
208,805
Current assets
Debtors
13
114,136
Cash at bank and in hand
404,819
518,955
Creditors: amounts falling due within
one year
14
(55,304)
Net current assets
463,651
Total assets less current liabilities
672,456
Income funds
Restricted funds
18
769
Unrestricted funds - designated
19
258,058
General unrestricted funds
413,629
672,456
2020
£
71,569
450,824
522,393
(117,826)		 £
239,836
404,567
644,403
337,780
306,623
644,403

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.

The trustees' acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to accounts, so far as applicable to the company.

The members have not required the company to obtain an audit of its financial statements 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_.27.{q/2/ .....
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Mr AF Gilmore MrC K
Trustee Trustee

Company Registration No. 3108844

KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU COMPANY LIMITED BY GUARANTEE STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2021

Notes
Cash flows from operating activities
Cash (absorbed by)/generated from
23
operations
Investing activities
Interest received
Net cash generated from investing
activities
Net cash used in financing activities
Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2021
£
£
(46,820)
815
815
(46,005)
450,824
404,819		 2020
£
806		 £
9,837
806
10,643
440,181
450,824

KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

Charity information

Knowsley District Citizens Advice Bureau is a private company limited by guarantee incorporated in England and Wales. The registered office is 142 Cherryfield Drive, Kirkby, Merseyside, L32 BRX.

1.1 Accounting convention

The accounts have been prepared in accordance with the charity's governing document, 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 2016). 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 accounts have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the accounts, 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 accounts.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by trustees for a particular purpose. The aim and use of the designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

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 from donations and grants, including capital grants, is included in income when these are receivable, except as follows:

Voluntary income includes discretionary grants for projects, goods and services where no service agreement or contract exists.

Other grants and contracts, which have particular service requirements are included in the statement of financial activities under the heading income from charitable activities.

Interest is included when receivable by the charity.

1.5 Expenditure

Expenditure reflects all amounts paid and accrued during the year. All costs are allocated between the expenditure categories on a basis designed to reflect the use of the resource. Costs relating to a particular project are allocated directly, others are apportioned on an appropriate basis. Staff costs are apportioned between projects on the basis of an assessment of the time spent by individual employees.

Charitable expenditure

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.

Governance costs

These represent costs associated with meeting the constitutional and statutory requirements of the charity and include the independent examination fees and costs linked to the strategic management of the charity.

1.6 Tangible fixed assets

Tangible fixed assets are measured at cost, net of depreciation and any impairment losses.

All assets costing more than £1,000 are capitalised at cost.

Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Leasehold Improvements 10% p.a. on a straight line basis Fixtures & fittings 25% p.a. on a straight line basis Office equipment 25% p.a. on a straight line basis

KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

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 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).

1.8 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.

1.9 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.

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 receipts 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.

KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

1.10 Employee benefits

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.

1.11 Leases

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

1.12 Taxation

The charity benefits from various exemptions from taxation afforded by tax legislation and is not liable to corporation tax on income or gains falling within those exemptions.

The charity is not able to recover Value Added Tax. Expenditure is recorded in the accounts inclusive of VAT.

1.13 Pensions

The charity operates a defined contribution scheme for employees. Contributions are charged to the Statement of Financial Activities in the period to which they relate.

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 10,200
-- --

KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

4 Charitable activities

Advice Advice
delivery delivery
2021 2020
£ £
Services provided under contract 790,383 609,451
Performance related grants 224,338 262,453
1,014,721 871,904
Analysis by fund
Unrestricted funds - general 790,383 609,451
Restricted funds 224,338 262,453
1,014,721 871,904
5 Investments
UnrestrictedUnrestricted
funds funds
general general
2021 2020
£ £
Interest receivable 815 806
6 Other income
UnrestrictedUnrestricted
funds funds
general general
2021 2020
£ £
Other income 9,437 11,323

Included within other income is £9,340 (2020: £10,622) for works placement.

KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

7 Charitable activities

Staf costs
Ofice expenses
Travel and subsistence
Sundry and cleaning
Share of support costs (see note 8)
Share of governance costs (see note 8)
Analysis by fund
Unrestricted funds - general
Restricted funds
Advice
delivery
2021
£
697,660
43,809
7,874
1,054
750,397
233,480
13,043
996,920
771,401
225,519
996,920		 Advice
delivery
2020
£
636,234
4,530
17,212
5,036
663,012
270,068
13,873
946,953
680,474
266,479
946,953

KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

8 Support costs

Staff costs
Depreciation
Premises costs
Ofice costs
Staff and volunteer
Other costs
Independent
examination and
accountancy fees
Legal and professional
Analysed between
Charitable activities		 Support Governance
costs
£
86,727
31,032
78,413
31,989
900
4,419
233,480
233,480
costs
£
4,788
8,255
13,043
13,043		 2021
£
86,727
31,032
78,413
31,989
900
4,419
4,788
8,255
246,523
246,523		 Support
costs
£
97,506
34,960
93,139
39,953
4,080
430
270,068
270,068
Governance
costs
£
5,438
8,435
13,873
13,873
2020
£
97,soB
34,960
93,139
39,953
4,080
430
5,438
8,435
283,941
283,941

Support costs represent the overheads for running the charity and where directly attributable, costs have been allocated to the relevant headings.

The recharges have been calculated as a pro-rata figure based on the number of FTE posts allocated to each funding stream.

Governance costs includes payments to the independent examiner of £2,300 for the independent examination and £2,488 for accountancy fees (2020- £2,250 payable for the independent examination and £3, 188 for accountancy fees).

9 Trustees

None of the trustees (or any persons connected with them) received any remuneration during the year. During the year one trustee was reimbursed £75 for expenses incurred (2020- £136).

10 Employees

The average monthly number of employees during the year was:

2021
Number
Advice delivery
17
Management and administration
13
Cleaning staff
2
Total
32		 2020
Number
17
13
2
32
KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
10 Employees (Continued)
Employment costs 2021 2020
£ £
Wages and salaries 685,261 641,751
Social security costs 58,769 53,129
Other pension costs 40,357 38,860
784,387 733,740

The average number of employees shown above is based on actual employee numbers.

Redundancy costs of £4,459 were paid to a former member of staff within the 2021 financial year. No such costs were incurred in 2020.

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

KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

11
Tangible fixed assets
Leasehold
Improvements
£
Cost
At 1 April 2020
297,225
At 31 March 2021
297,225
Depreciation
At 1 April 2020
59,444
Depreciation charged in the year
29,722
At 31 March 2021
89,166
Carrying amount
At 31 March 2021
208,059
At 31 March 2020
237,781
12
Financial instruments
Carrying amount of financial assets
Debt instruments measured at cost
Carrying amount of financial liabilities
Measured at cost
13
Debtors
Amounts falling due within one year:
Trade debtors
Prepayments and accrued income
Ofice
equipment
£
34,519
34,519
32,464
1,309
33,773
746
2,055
2021
£
406,194
55,304
2021
£
1,375
112,761
114,136		 Total
£
331,744
331,744
91,908
31,031
122,939
208,805
239,836
2020
£
452,199
67,269
2020
£
1,375
70,194
71,569

KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

14
Creditors: amounts falling due within one year
Notes
Deferred income
15
Other creditors
Accruals
15
Deferred income
Other deferred income
Deferred income is included in the financial statements as follows:
Total deferred income at 1 April 2020
Amounts received in the year
Amounts credited to statement of financial activities
2021
£
290
55,014
55,304
2021
£
2021
£
57,557
(50,557)		 2020
£
50,557
27
67,242
117,826
2020
£
50,557
2020
£
58,540
50,557
(58,540)
50,557

KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS {CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

16 Amounts held on behalf of third parties

The charitable company holds funds as agent totalling £14;!,476 (2020: £134,897), in a bank account operated by the charitable company, which is payable to third parties. The amount payable to third parties and an equivalent amount of the bank balance are excluded from these accounts.

Funder
GMMAP Funds
Enterprise Hub
Funder
GMMAP Funds
Enterprise Hub
Balance at 1
April 2020
£
134,890
7
134,897
Balance at 1
April 2019
£
112,825
23
112,848		 Received
£
2,636,559
43,509
2,680,068
Received
£
2,192,957
92,294
2,285,251
Paid out
Balance at 31 March
2021
£
£
(2,628,981)
142,468
(43,508)
8
(2,672,489)
142,476
Paid out
Balance at 31 March
2020
£
£
(2,170,892)
134,890
(92,310)
7
(2,263,202)
134,897

17 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 the statement of financial activities in respect of defined contribution schemes was £40,357 (2020 - £38,860).

KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

18 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:

Balance at
1 April 2019
£
Building Better Opportunities
-
Universal Support
-		 Movement in funds
Movement in funds
Income
Expenditure
Transfers
Balance at
Income
Expenditure
1 April 2020
£
£
£
£
£
£
124,890
(126,581)
1,691
-
77,898
(79,848)
137,563
(139,898)
2,335
-
146,439
(145,670)
262,453
(266,479)
4,026
-
224,337
(225,518)		 Transfers
Balance at
31 March 2021
£
£
1,950
-
769
1,950
769

-25-

KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

19 Unrestricted funds - designated

These are unrestricted funds which are material to the charity's activities made up as follows:

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at
Income Expenditure		 Balance at Transfer Expenditure Balance at
1 April 2019 1 April 2020 31 March 2021
£
£		 £ £ £ £ £
Future building works 100,000 100,000 (50,000) 50,000
Leasehold
improvements 267,502 (29,722)
237,780		 (29,722) 208,058
367,502 (29,722)
337,780		 (50,000) (29,722) 258,058

The above designated funds have been set aside to carry out future building works at our new Kirkby and Huyton offices. The balance was reviewed by the trustees to more accurately reflect the position held at 31 March 2021. The leasehold improvements designated fund represents the net book value of the assets capitalised within 2019.

KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

20 Analysis of net assets between funds

Analysis of net assets between funds
Unrestricted Designated Restricted Total Unrestricted Designated Restricted Total
funds funds funds funds funds funds
2021 2021 2021 2021 2020 2020 2020 2020
£ £ £ £ £ £ £ £
Fund balances at 31 March 2021 are represented
by:
Tangible assets 747 208,058 - 208,805 2,056 237,780 - 239,836
Current assets/(liabilities) 362,882 100,000 769 463,651 304,567 100,000 - 404,567
-
363,629 308,058 769 672,456 306,623 337,780 - 644,403

KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

21 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:

22
23
24
Within one year
Between two and five years
In over five years
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
Aggregate remuneration
No guarantees have been given or received.
There are no other related party transactions.
Cash generated from operations
Surplus/(deficit) for the year
Adjustments for:
Investment income recognised in statement of financial activities
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(lncrease)/decrease in debtors
(Decrease )/increase in creditors
(Decrease) in deferred income
Cash (absorbed by}/generated from operations
Analysis of changes in net funds
The charity had no debt during the year.		 2021
£
53,400
213,600
107,400
374,400
2021
£
88,915
2021
£
28,053
(815)
31,031
(42,567)
(11,965)
(50,557)
(46,820)		 2020
£
53,400
213,600
160,800
427,800
2020
£
86,815
2020
£
(52,720)
(806)
34,959
18,735
9,669
9,837

KNOWSLEY DISTRICT CITIZENS ADVICE BUREAU COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

25 Company limited by guarantee

Knowsley District Citizens Advice Bureau Limited is incorporated under the Companies Act 2006 as a company limited by guarantee. The liability of the members is limited to £1.