Company registration number: 03164247 Charity registration number: 1058935
Clifton Welfare Rights Advice Centre
(A company limited by guarantee) Annual Report and Financial Statements for the Year Ended 31 March 2021
Community Accounting Plus Units 1 & 2 North West 41 Talbot Street Nottingham NG1 5GL
Clifton Welfare Rights Advice Centre
Contents
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' Report | 2 to 3 |
| Independent Examiner's Report | 4 |
| Statement of Financial Activities | 5 |
| Balance Sheet | 6 |
| Notes to the Financial Statements | 7 to 13 |
Clifton Welfare Rights Advice Centre
Reference and Administrative Details
Trustees Clare Ashton Robert Michalak Allan Richards Stephen Young Secretary Robert Michalak Senior Management Team Jillian Chappell, Senior Advisor Lorraine Richards, Administrator/Information Officer Principal Office Clifton Cornerstone Southchurch Drive Clifton Nottingham NG11 8EW Company Registration Number 03164247 Charity Registration Number 1058935 Independent Examiner John O'Brien, employee of Community Accounting Plus Units 1 & 2 North West 41 Talbot Street Nottingham NG1 5GL
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Clifton Welfare Rights Advice Centre
Trustees' Report
The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 March 2021.
Structure, governance and management
The charity is a company limited by guarantee and registered charity. It is operated under the rules of its memorandum and articles of association dated 26 February 1996. It has no share capital and the liability of each member in the event of winding-up is limited to £1.
Recruitment and appointment of trustees
The Trustees are elected and co-opted under the terms of the Memorandum and Articles of Association.
Major risks and management of those risks
Funding
The majority of our funding is from one source.
Objectives and activities
Objects and aims
The general charitable purposes are through education/training for the prevention or relief of poverty.
We provide welfare rights, debt, housing, employment, consumer and other generalist advice for the residents of Clifton, Wilford and Silverdale areas of Nottingham.
Public benefit
Our Services are free, impartial and confidential to our clients. The service is open to everyone.
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Achievements and performance
During the year 2020-21 we generated annualised benefit gains of £565,090 and obtained lump sum amounts of £393,197 for clients.
We managed £103,638 of non-priority debts and £102,611 of priority debts for clients.
Due to the Covid pandemic our staff were working from home for most of the 2020/21 period. We never closed our advice services to the community, instead of face to face advice we provided a telephone advice service. Old and new clients have told us how valuable our services have been to them in helping them with their issues and avoided physical and mental isolation during lock-down. We will continue to provide a free, independent and impartial quality service to meet the needs of Nottingham citizens.
Financial review
We have been financially prudent, but due to reductions in grant funding it was agreed to use some of our reserves in order to maintain our client service.
Policy on reserves
We aim to retain three months financial reserves and termination costs. This is reviewed annually.
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Clifton Welfare Rights Advice Centre
Trustees' Report
Statement of Trustees' Responsibilities
The trustees (who are also the directors of Clifton Welfare Rights Advice Centre for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The annual report was approved by the trustees of the charity on .................... and signed on its behalf by: 8/12/2021
......................................... Clare Ashton Trustee
Small companies provision statement
This report has been prepared in accordance with the small companies regime under the Companies Act 2006.
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Clifton Welfare Rights Advice Centre
Independent Examiner's Report to the trustees of Clifton Welfare Rights Advice Centre
Independent examiner’s report to the trustees of Clifton Welfare Rights Advice Centre ('the Company')
I report to the charity trustees on my examination of the accounts of the company for the year ended 31 March 2021.
Responsibilities and basis of report
As the charity's trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company 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 your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
Independent examiner’s statement
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:
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accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
......................................
John O'Brien, employee of Community Accounting Plus Fellow of the Association of Charity Independent Examiners
Units 1 & 2 North West 41 Talbot Street Nottingham NG1 5GL
8/12/2021 Date:.............................
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Clifton Welfare Rights Advice Centre
Statement of Financial Activities for the Year Ended 31 March 2021 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)
| Note Income and Endowments from: Donations and legacies 2 Charitable activities 3 Investment income 5 Total Income Expenditure on: Charitable activities 6 Total Expenditure Net (expenditure)/income Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward |
Unrestricted funds £ 63,796 639 85 64,520 (66,132) (66,132) (1,612) (1,612) 29,482 27,870 |
Total 2021 £ 63,796 639 85 64,520 (66,132) (66,132) (1,612) (1,612) 29,482 27,870 |
Total 2020 £ 73,172 - 164 |
|---|---|---|---|
| 73,336 | |||
| (72,745) | |||
| (72,745) | |||
| 591 | |||
| 591 28,891 |
|||
| 29,482 |
All of the charity's activities derive from continuing operations during the above two periods.
.
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Clifton Welfare Rights Advice Centre
(Registration number: 03164247) Balance Sheet as at 31 March 2021
| Note Current assets Debtors 12 Cash at bank and in hand 13 Creditors: Amounts falling due within one year 14 Net assets Funds of the charity: Unrestricted income funds Unrestricted funds Total funds |
2021 £ 874 28,422 29,296 (1,426) 27,870 27,870 27,870 |
2020 £ 1,119 28,975 |
|---|---|---|
| 30,094 (612) |
||
| 29,482 | ||
| 29,482 | ||
| 29,482 |
For the financial year ending 31 March 2021 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements on pages 5 to 13 were approved by the trustees, and authorised for issue on .................... and signed on their behalf by: 8/12/2021
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......................................... Robert Michalak Company Secretary and Trustee
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Clifton Welfare Rights Advice Centre
Notes to the Financial Statements for the Year Ended 31 March 2021
1 Accounting policies
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.
Basis of preparation
Clifton Welfare Rights Advice Centre meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
Going concern
The financial statements have been prepared on a going concern basis.
The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of approval of the financial statements.
Exemption from preparing a cash flow statement
The charity opted to adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.
Income and endowments
Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.
Grants receivable
Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.
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Clifton Welfare Rights Advice Centre
Notes to the Financial Statements for the Year Ended 31 March 2021
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
Charitable activities
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.
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Tangible fixed assets
Individual fixed assets costing £500 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation and amortisation
Depreciation is provided on tangible fixed assets on a straight line basis as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
| Asset class | Depreciation method and rate |
|---|---|
| General equipment | 20.00% |
| Computer equipment | 33.33% |
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
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Clifton Welfare Rights Advice Centre
Notes to the Financial Statements for the Year Ended 31 March 2021
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees' discretion in furtherance of the objectives of the charity.
Pensions and other post retirement obligations
The charity operates a defined benefit pension scheme for employees. The assets of the scheme are held separately from those of the charity. Pension costs charges in the Statement of Financial Activities represent the contributions payable by the charity during the year.
2 Income from donations and legacies
| Grants, including capital grants; Government grants 3 Income from charitable activities Other income 4 Grants & donations Nottingham City Council (Citizens Advice Nottingham) |
Unrestricted funds General £ 63,796 63,796 Unrestricted funds General £ 639 |
Total 2021 £ 63,796 63,796 Total 2021 £ 639 Unrestricted funds £ 63,796 63,796 |
Total 2020 £ 73,172 |
|---|---|---|---|
| 73,172 | |||
| Total 2020 £ - |
|||
| Total £ 63,796 |
|||
| 63,796 |
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Clifton Welfare Rights Advice Centre
Notes to the Financial Statements for the Year Ended 31 March 2021
5 Investment income
| Interest receivable and similar income; Interest receivable on bank deposits 6 Expenditure on charitable activities Travel & subsistence Training & conference Equipment, repairs & renewal Insurance Telephone, internet & postage Printing & stationery Resources Donations Membership & affiliations Legal & professional Depreciation Sundry payments Wages, NI & pension |
Unrestricted funds General £ 85 Unrestricted funds General £ 50 - 2 770 782 492 2,659 470 856 2,112 - 505 57,434 66,132 |
Total 2021 £ 85 Total 2021 £ 50 - 2 770 782 492 2,659 470 856 2,112 - 505 57,434 66,132 |
Total 2020 £ 164 |
|---|---|---|---|
| Total 2020 £ 13 13 - 2,098 1,141 833 - 1,290 306 7,781 624 205 58,441 |
|||
| 72,745 |
7 Trustees remuneration and expenses
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
No trustees have received any reimbursed expenses or any other benefits from the charity during the year.
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Clifton Welfare Rights Advice Centre
Notes to the Financial Statements for the Year Ended 31 March 2021
8 Fees payable to independent examiner
During the period, the fees payable (excluding VAT) to the charity’s independent examiner Community Accounting Plus are analysed as follows:
| Independent examination 9 Staff costs The aggregate payroll costs were as follows: Staff costs during the year were: Wages and salaries Social security costs Pension costs |
2021 £ 510 2021 £ 45,579 - 11,855 57,434 |
2020 £ 510 |
|---|---|---|
| 2020 £ 46,904 129 11,408 |
||
| 58,441 |
The monthly average number of persons (including senior management team) employed by the charity during the year was as follows:
| Average number of employees | 2021 No 3 |
2020 No 3 |
|---|---|---|
2 (2020 - 2) of the above employees participated in the Defined Benefit Pension Schemes.
Contributions to the employee pension schemes for the year totalled £9,038 (2020 - £6,951).
No employee received emoluments of more than £60,000 during the year.
The total employee benefits of the key Advice Delivery Team of the charity were £53,782 (2020 - £48,525).
10 Taxation
The charity is a registered charity and is therefore exempt from taxation.
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Clifton Welfare Rights Advice Centre
Notes to the Financial Statements for the Year Ended 31 March 2021
11 Tangible fixed assets
| Cost At 1 April 2020 At 31 March 2021 Depreciation At 1 April 2020 At 31 March 2021 Net book value At 31 March 2021 At 31 March 2020 12 Debtors Prepayments 13 Cash and cash equivalents Cash on hand Cash at bank 14 Creditors: amounts falling due within one year Other taxation and social security Other creditors |
Computer equipment £ 1,596 |
General equipment £ 6,240 |
Total £ 7,836 7,836 7,836 7,836 - - 2020 £ 1,119 |
||
|---|---|---|---|---|---|
| 1,596 | 6,240 | ||||
| 1,596 | 6,240 | ||||
| 1,596 | 6,240 | ||||
| - | - | ||||
| - | - | ||||
| 2021 £ 874 2021 £ 16 28,406 28,422 2021 £ 814 612 1,426 |
|||||
| 2020 £ 25 28,950 |
|||||
| 28,975 | |||||
| 2020 £ - 612 |
|||||
| 612 |
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Clifton Welfare Rights Advice Centre
Notes to the Financial Statements for the Year Ended 31 March 2021
15 Pension and other schemes
Defined benefit pension schemes
Nottinghamshire County Council
The charity participates in the Nottinghamshire County Council Pension Fund, a multi-employer defined benefit final salary scheme. The scheme is administered for the benefit of Local Authority employees and other bodies and is managed in accordance with the Local Government Pension Scheme Regulations 1997 (as amended). The administering authority for the Fund is Nottinghamshire County Council.
Contributions to the scheme are determined with advice of independent qualified actuaries on the basis of triennial valuations using the projected unit method.
The employer’s contributions made to the scheme in the year were £11,855 (2020: £11,408). The calculated cost of accrual of future benefits is 20.2% of payroll p.a. plus monetary contributions of £2,817.
Due to lack of the detailed information about the defined benefit fund, the values of the fund's assets and liabilities are not included in the accounts. Whereas, the pension contributions made by the employer are accounted as a defined contribution scheme and included in the expenditure of the charity’s accounts.
16 Related party transactions
There were no related party transactions in the year.
17 3rd party funds
The charity holds a small fund for Nottingham City Council Area 8 Committee. The brought forward balance is £139 and there were no movements during the period.
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