OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-03-31-accounts

ISLAND ADVICE CENTRE (A company limited by guarantee) (Registered No.: 03375266) (Charity No.: 1076857)

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

MYRUS SMITH

Chartered Accountants

Norman House 8 Burnell Road Sutton, Surrey SM1 4BW

ISLAND ADVICE CENTRE (A company limited by guarantee)

CONTENTS

FOR THE YEAR ENDED 31 MARCH 2021

Page
Trustees’ Annual Report 1 - 7
Independent Auditor’s Report 8 - 11
Statement of Financial Activities 12
Balance Sheet 13
Notes to the Accounts 14 - 20

ISLAND ADVICE CENTRE (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2021

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

REFERENCE AND ADMINISTRATIVE DETAILS

Charity name and registration numbers

Name: Island Advice Centre Company No: 03375266 Charity No: 1076857

Board of Trustees

Katherine Wilson Chair Steve Lake Treasurer Chris Parsons Thomas Siggers Shabnam Sharmin Simon Lanaria Godline Pushparajan Juliet Grimes (resigned 2 October 2020) Stephanie Dickinson (appointed 1 December 2020)

Centre Manager

Sarah Sauvat

Registered Office and Principal Address

Island House Roserton Street London E14 3PG

Auditors

Myrus Smith, Chartered Accountants and Statutory Auditors Norman House 8 Burnell Road Sutton, Surrey SM1 4BW

1

ISLAND ADVICE CENTRE (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2021

/ contd….

OBJECTIVES AND ACTIVITIES

Main objectives and mission

The Centre’s main objectives, in accordance with its governing document, are:

The effect of the pandemic

During this financial year, the pandemic had a direct effect on the organisation’s delivery of main activities due to COVID 19 related control measures being put in place by the government. The Centre Manager, being from a vulnerable group, had to shield and the organisation had to review promptly how to alter the delivery of main activities to ensure a safe environment.

Although the delivery of the service continued, its delivery has been altered to remote methods. The pandemic also has a direct impact on volunteers’ involvement which has considerably reduced.

The services continued to be provided through increased telephone helpline, remote appointments via telephone or digital means and email advice. Outreach sessions were delivered remotely as well as training courses and workshops, factsheets and online information continued to be developed.

Although volunteers are essential to advice service delivery and the organisation recruits, trains and supports volunteers in advice skills and provides NVQ assessments in Advice and Guidance levels 3 and 4, the level of recruitment was severely affected by the pandemic.

Funders have been flexible in their approach to reporting and numerous funding streams have been opened to support the advice sector during this time of national crisis including London Community Response and Community Justice Fund.

The organisation is continuously looking into funding streams available to adapt service provision to current times including funding for core costs to adapt service delivery as well as funding to increase capacity in order to ensure delivery of the service remains effective and manageable.

Main activities

The organisation exists to provide generalist advice and information, benefits, debt and housing casework including representation at court and tribunals, training and placements for advice volunteers, and peer support to other front-line advice agencies.

2

ISLAND ADVICE CENTRE (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2021 / contd….

Our main activities are carried out in our office on the Isle of Dogs, with outreach advice sessions being delivered at Spitalfields Health Centre, E1 Health, Chrisp Street Health Centre, Barkantine Clinic, Island Health Centre, ELATT and Bromley by Bow Centre. Our activities in the year included:

These activities can be broadly divided into four categories:

  1. Specialist casework – this includes debt and money management advice funded by LBTH, welfare benefits casework and appeals funded by LBTH and City Bridge Trust and housing advice and casework funded by Trust for London.

  2. Advice volunteer training – includes our volunteer training project funded by LBTH, NVQ assessments carried out by qualified staffs and funded by a mix of grants from Canary Wharf Trust and fee payments by candidates/their employers, and training sessions and workshops delivered to other agencies partly funded by LBTH and partly by East End Community Foundation.

  3. Generalist advice provision – delivered through telephone advice session, emails, remote outreach sessions and appointments and funded by LBTH, Social Action for Health, Thames Water Trust, ELATT college and Osmani Trust.

  4. Peer Support and Coordination Work – this work consists of support for Tower Hamlets Community Advice Network and coordination of referrals funded by Child Society Coordinate Community Support .

3

ISLAND ADVICE CENTRE (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2021

/ contd….

Service provision depends on suitable funding being available for that service. Restricted funds will be applied only for the specific activities required by the funder whilst unrestricted funds may be used to support or extend any service that we consider it important to deliver in light of our overall mission and our understanding of local needs.

Our user statistics indicate that residents from all sectors of the local Tower Hamlets community are aware of and access our services. The majority of beneficiaries are people experiencing hardship caused by low incomes due to unemployment or furloughing, cessation of benefits, lack of access to utilities and financial services, indebtedness including rent and council tax arrears, insecure or unaffordable housing, homelessness and disrepair. Our services are accessible in terms of disabled access (suitable premises, outreach appointments), language (advisers speak a range of community languages) and local provision.

Other beneficiaries are unemployed residents who can access our volunteering and training opportunities and gain vocational skills, qualifications, and improved chances of finding secure employment.

How our activities deliver public benefit

The trustees, when exercising any powers or duties to which the guidance is relevant, notably about how the organisation undertakes its work and spends the resources it raises, always have due regard to the Charity Commission’s public benefit guidance.

Our charitable activities focus on the provision of free advice and advocacy to residents of Tower Hamlets and surrounding areas. We incorporate the help of local volunteers both in our management committee and service delivery.

Therefore the public benefit is twofold. Firstly by helping those in need to secure their statutory rights and entitlements and empowering them through awareness and support. Without this support many of our clients would fall under the poverty line which is detrimental to their well-being and the well-being of children under their care.

Secondly through our volunteering opportunities we up-skill residents and give them the experience and skills needed to enter the job market and participate in the local and wider economy. Many of our volunteers move on to paid employment both in the advice sector and other areas.

ACHIEVEMENTS AND PERFORMANCE

In the year ending 31[st] March 2021, 2808 people accessed our advice services, either by been referred directly through us or by accessing our service directly via telephone or email or through outreach services which we continued to deliver remotely.

Our outreach services delivered 176 remote sessions funded by SAfH in 5 GP surgeries. We also delivered 44 outreach advice sessions at the Osmani Centre and resumed delivering advice sessions to ELATT since January 2021 on a weekly basis during term time.

Through our in-house telephone and email enquiries funded by LBTH, we assisted 1329 service users accessing general advice by phone or online and following our advice and support with 2204 enquiries.

4

ISLAND ADVICE CENTRE (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2021

/ contd….

Through our debt specialist casework funded by LBTH and Thames Water, we helped 168 clients having £167,075.81 of debt written off through insolvency or discretionary relief and £124,088.53 of debt managed through reduced payment plan or moratorium period. And through our financial capability support funded by Thames Water we helped 100 households with better off energy comparison and discount application with projected annual savings of £21,701.52 (£217 per household)

Through our specialist welfare casework funded by CBT, we supported 141 clients secure £291,876.22 of confirmed additional income and assisted 67 clients with appeal matters including tribunal representation.

Through our housing specialist advice funded by TFL, we advised 215 clients regarding housing matter and provided specialist casework support to 101 to improve their housing position including disrepair, housing allocation, suitable housing and/or avoiding homelessness.

Our volunteer advice work training project continued to be funded by LBTH. The project delivers a weekly digital advice training course to local community volunteers, finds placements for them in Island Advice and offers the opportunity to progress to NVQ levels 3 and 4.

We have also continued to provide peer support and capacity building to other Tower Hamlets advice centres with funding from LBTH. This has included delivery of training courses, workshops and factsheets, the setting up and maintenance of a Tower Hamlets Community Advice Network website, provision of file reviews for advisers in other agencies, and co-ordination of the THCAN steering group and its associated advice forums.

With the support of the Children Society Coordinate Community programme we updated the THCAN website to include a centralised referral system available to organisations in the borough of Tower Hamlets to help implement and coordinate an effective referral system for residents to access the advice sector.

FINANCIAL REVIEW

Principal Funding sources

Island Advice relies on charitable grants and statutory funding for its income. The organisation has an ongoing strategy of applying for any available grants targeted for the provision of social welfare law advice from large statutory funders as well as smaller trusts and foundations. The principal funding sources in this year were the London Borough of Tower Hamlets, Trust for London and City Bridge Trust; other funders included the SAfH (GP Link’s project), Children Society and Thames Water Trust.

There are four areas of restricted funding: specialist casework, which funds casework in housing, welfare benefits and debt; generalist advice which is delivered through drop-in sessions, telephone advice and appointments; advice volunteer training which is offered to advice centre volunteers borough-wide and includes both classroom training and supervised placements; and peer support work which is offered to other advice centres in the borough.

Overall, the income increased by 14% whereas expenditure decreased by 3% from last year.

5

ISLAND ADVICE CENTRE (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2021

/ contd….

Reserves policy

Trustees have established that in order to fulfil their responsibilities to staff and to minimise the risk of any breach of statute or organisational duty the organisation should hold sufficient funds in reserve to meet the full running costs for three months. Reserves will be built up from unrestricted funds and the level of reserves will be reviewed annually by the Board. The present level of reserves available to the charity meets this requirement.

Unrestricted funds at 31[st] March 2021 amounted to £116,021 (2020 : £87,104).

Investment policy

Any surplus funds will be held in low risk, secure investments such as the charities deposit fund run by CCLA Investment Management Ltd. Additionally the organisation uses an interest bearing current account in order to maximise the value of any cash held.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Directors of the company are also the Trustees of the charity. The charity’s governing document is a memorandum and articles of association dated 23[rd] May 1997 and updated on 29[th] June 1999.

Remuneration of Key Management Personnel

The remuneration of the charity’s key management personnel is set by the Board of Trustees, taking into account the charity’s financial position and the amount paid for comparable roles in comparable organisations.

Trustee appointment, induction and training

Trustees are elected at the organisation’s AGM. In addition, the board may, at its discretion, make appointments to the Board between AGMs. The Board endeavours to ensure that its membership covers a wide range of experience and skills and that the backgrounds of the members of the Board reflect a balance that is appropriate to the charity’s mission and activities. New trustees are provided with a copy of the business plan, the most recent annual report and constitution, details of the organisation’s structure and staffing, and copies of relevant policies including the Equality and Diversity Policy.

Organisational structure

Operational management of the organisation is delegated to the Centre Manager who takes overall responsibility for the day to day running of the organisation, planning and strategy, and implementing the directions of the Board. The Centre Manager is part of a senior management team that includes the volunteer co-ordinator and housing, debt and welfare benefits advice supervisors.

Involvement of volunteers

The board of trustees comprises of volunteers drawn from the local community, the business sector, other voluntary sector organisations and ex- advice staff and volunteers. The organisation also uses local community volunteers and law students to assist in delivery of advice services and to carry out administrative support.

6

ISLAND ADVICE CENTRE (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2021 / contd….

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The trustees (who are also directors of Island Advice Centre for the purposes of company law) are responsible for preparing the Trustees’ Annual 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. 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 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 keeping adequate accounting records that 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.

In so far as the trustees are aware:

AUDITORS

A resolution proposing the re-appointment of Myrus Smith as auditors to the company will be put to the Annual General Meeting.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by the Board of Trustees on 27 January 2022 and signed on its behalf, by:

Katherine Wilson Chair

7

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF:

ISLAND ADVICE CENTRE (A company limited by guarantee)

FOR THE YEAR ENDED 31 MARCH 2021

Opinion

We have audited the financial statements of Island Advice Centre (the ‘charitable company’) for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet and 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).

In our opinion the financial statements:

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 charitable company 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 charitable company'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 trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

8

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF:

ISLAND ADVICE CENTRE (A company limited by guarantee)

FOR THE YEAR ENDED 31 MARCH 2021

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes 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 charitable company’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.

9

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF:

ISLAND ADVICE CENTRE (A company limited by guarantee)

FOR THE YEAR ENDED 31 MARCH 2021

Auditor’s responsibilities for the audit of the financial statements

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

10

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF:

ISLAND ADVICE CENTRE (A company limited by guarantee)

FOR THE YEAR ENDED 31 MARCH 2021

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Stephen Jones FCA (Senior Statutory Auditor) For and on behalf of Myrus Smith Chartered Accountants and Statutory Auditors Norman House 8 Burnell Road Sutton, Surrey SM1 4BW

28 January 2022

11

ISLAND ADVICE CENTRE (A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES

(Incorporating Income and Expenditure Account)

FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted Restricted Total Total
Notes Funds Funds 2021 2020
£ £ £ £
Income from:
Donations and legacies 2 10,000 - 10,000 10,000
Charitable activities 3 75,038 366,961 441,999 385,286
Investments 4 52 - 52 263
────── ────── ────── ──────
Total 85,090 366,961 452,051 395,549
────── ────── ────── ──────
Expenditure on:
Charitable activities 5 56,173 351,440 407,613 418,780
────── ────── ────── ──────
Total 56,173 351,440 407,613 418,780
────── ────── ────── ──────
Net income/(expenditure) 8 28,917 15,521 44,438 (23,231)
Transfers between funds 14 - - - -
────── ────── ────── ──────
Net movement in funds 14 28,917 15,521 44,438 (23,231)
Reconciliation of funds:
Total funds brought forward 14 87,104 - 87,104 110,335
────── ────── ────── ──────
Total funds carried forward 14 £116,021 £15,521 £131,542 £87,104
══════ ══════ ══════ ══════

All income and expenditure derive from continuing activities.

The Statement of Financial Activities includes all recognised gains and losses.

The notes form part of the financial statements.

12

ISLAND ADVICE CENTRE (A company limited by guarantee) (Company No: 03375266)

BALANCE SHEET

AS AT 31 MARCH 2021

2021 2020
Notes £ £ £ £
FIXED ASSETS
Tangible assets 11 - -
CURRENT ASSETS
Debtors 12 29,028 18,616
Cash at bank and in hand 117,590 86,675
────── ──────
146,618 105,291
CREDITORS
Amounts falling due within one year 13 15,076 18,187
────── ──────
NET CURRENT ASSETS 131,542 87,104
────── ──────
NET ASSETS 15 £131,542 £87,104
══════ ══════
FUNDS
Restricted 14 15,521 -
Unrestricted 14 116,021 87,104
────── ──────
14 £131,542 £87,104
══════ ══════

The financial statements have been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006.

The financial statements were approved by the Board of Trustees on 27 January 2022 and signed on its behalf by:

Katherine Wilson Chair

The notes form part of the financial statements.

13

ISLAND ADVICE CENTRE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES

General information and basis of accounting

Island Advice Centre is a registered charity (no. 1076857) and a private company (no. 03375266) limited by guarantee, registered in England and Wales. Each member is liable to contribute an amount not exceeding £1 in the event of the charitable company being wound up. The registered office is given in the Trustees’ Annual Report on page 1.

The charity constitutes a public benefit entity as defined by FRS 102. 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) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

The financial statements are prepared on a going concern basis and under the historical cost convention. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

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 costs of raising and administering such funds are charged against the specific fund.

Incoming resources

Items of income are recognised in the financial statements when all of the following criteria are met:

Where grants are awarded over a specified or implied timeframe, the income is recognised evenly over the grant period. A contingent asset is disclosed for the unrecognised amount of multi-year grants.

Resources expended

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

Expenditure is allocated to each activity where the costs relate directly to that activity. Support costs, including governance costs, that do not relate directly to any activity are apportioned to each activity on the basis of staff time.

14

ISLAND ADVICE CENTRE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

/contd…

1. ACCOUNTING POLICIES /contd…

Fixed assets

All assets costing more than £1,000 are capitalised. The costs of assets less than £1,000 are charged to the Statement of Financial Activities in the year of purchase. Depreciation is charged so as to write off the cost over the estimated useful life at the following rates:

Computer Equipment

33% straight line

Operating leases

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Pensions

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

Debtors and Creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

2. INCOME FROM DONATIONS AND Unrestricted Restricted Total Total
LEGACIES Funds Funds 2021 2020
£ £ £ £
Donations 10,000 - 10,000 10,000
────── ────── ────── ──────
£10,000 £Nil £10,000 £10,000
══════ ══════ ══════ ══════
All of the £10,000 recognised in 2020 related to unrestricted funds.
3. INCOME FROM CHARITABLE Unrestricted Restricted Total Total
ACTIVITIES Funds Funds 2021 2020
£ £ £ £
Grants and contracts:
Specialist casework - 162,304 162,304 190,545
Advice volunteer training 14,000 69,328 83,328 72,150
Generalist advice provision 53,788 135,329 189,117 98,363
Peer support work 7,250 - 7,250 24,228
────── ────── ────── ──────
£75,038 £366,961 £441,999 £385,286
══════ ══════ ══════ ══════

Of the £385,286 recognised in 2020, £86,241 related to unrestricted funds and £299,045 related to restricted funds.

15

ISLAND ADVICE CENTRE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

/contd…

4. INVESTMENT INCOME Unrestricted Restricted Total Total
Funds Funds 2021 2020
Bank interest £52 £Nil £52 £263
══════ ══════ ══════ ══════

All of the £263 recognised in 2020 was unrestricted funds.

5. EXPENDITURE ON CHARITABLE Direct Support Total Total
ACTIVITIES Costs Costs 2021 2020
£ £ £ £
Staff costs 285,404 50,917 336,321 343,798
Direct project costs 1,920 - 1,920 -
Subscriptions and insurance - 4,616 4,616 6,254
Stationery and postage - 3,829 3,829 7,141
Payroll services - 710 710 720
Premises costs - 17,447 17,447 22,083
Publications - 150 150 678
Computer expenses 16,087 - 16,087 10,015
Volunteers’ expenses - 311 311 2,477
Staff and volunteer training and recruitment 1,754 - 1,754 2,873
Sundry expenses - 204 204 1,043
Telephone and internet - 7,095 7,095 5,708
Travelling costs - 112 112 862
Professional fees - 5,599 5,599 2,556
NVQ assessors fees 6,305 - 6,305 7,464
Governance costs (note 7) - 5,153 5,153 5,108
────── ────── ────── ──────
£311,470 £96,143 £407,613 £418,780
══════ ══════ ══════ ══════

Of the £418,780 expenditure recognised in 2020, £118,756 was charged to unrestricted funds and £300,024 was charged to restricted funds.

6. ANALYSIS OF DIRECT AND SUPPORT Direct Support Total Total
COSTS BY ACTIVITY Costs Costs 2021 2020
£ £ £ £
Specialist casework 120,434 36,615 157,049 191,140
Advice volunteer training 58,479 21,550 80,029 72,296
Generalist advice provision 95,456 64,040 159,496 111,899
Peer support work 11,039 - 11,039 43,445
────── ────── ────── ──────
£285,408 £122,205 £407,613 £418,780
══════ ══════ ══════ ══════

16

ISLAND ADVICE CENTRE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

/contd…

7. GOVERNANCE COSTS
7. GOVERNANCE COSTS 2021 2020
£ £
Staff costs 2,873 2,108
Audit fees 2,280 3,000
────── ──────
£5,153 £5,108
══════ ══════
8. NET EXPENDITURE 2021 2020
The net expenditure for the year is stated after charging:
Auditor’s remuneration £2,280 £3,000
Operating lease rentals £11,969 £12,413
══════ ══════
9. STAFF COSTS 2021 2020
£ £
Wages and salaries 292,431 298,438
Social security 21,902 23,814
Pension costs 21,642 23,654
Redundancy costs 3,219 -
────── ──────
£339,194 £345,906
══════ ══════
2021 2020
No. No.
Average number of full-time equivalent employees 9 9
══ ══
2021 2020
No. No.
Average monthly number of employees 11 12
══ ══

No employee received total employee benefits (excluding employer pension costs) amounting to more than £60,000 in either year.

Total employee benefits received by Key Management amounted to £57,463 (2020 : £75,969). Under FRS 102, employee benefits incudes gross salary, employer’s NIC and employer’s pension contributions.

17

ISLAND ADVICE CENTRE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

/contd…

10. TRUSTEES’ REMUNERATION AND EXPENSES

The Trustees received no remuneration or reimbursed expenses in 2021 or 2020.

There were no related party transactions in either year other than the Key Management employee benefits disclosed in Note 9.

11. TANGIBLE FIXED ASSETS Computer
equipment
£
Cost
As at 1 April 2020 and at 31 March 2021 7,612
──────
Depreciation
As at 1 April 2020 and at 31 March 2021 7,612
──────
Net book value
As at 31 March 2021 £Nil
══════
As at 31 March 2020 £Nil
══════
12. DEBTORS 2021 2020
Prepayments and accrued income £29,028 £18,616
══════
══════
13. CREDITORS– Amounts falling due within one year 2021 2020
£ £
Accruals 8,688 9,290
Social security and other taxes 6,388 8,897
──────
──────
£15,076 £18,187
══════
══════

18

ISLAND ADVICE CENTRE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

/contd…

14. MOVEMENT IN FUNDS Transfers
Brought between Carried
2021 forward Income Expenditure funds forward
£ £ £ £ £
Restricted Funds
Specialist casework - 162,304 157,045 - 5,259
Advice volunteer training - 69,328 67,228 - 2,100
Generalist advice provision - 135,329 127,167 - 8,162
────── ────── ────── ────── ──────
Total restricted Funds - 366,961 351,440 - 15,521
────── ────── ────── ────── ──────
Unrestricted Funds ────── ────── ────── ────── ──────
General 87,104 85,090 56,173 - 116,021
────── ────── ────── ────── ──────
────── ────── ────── ────── ──────
TOTAL FUNDS £87,104 £452,051 £407,613 £Nil £131,542
══════ ══════ ══════ ══════ ══════

Each of the above funds is described in the Trustees’ Annual Report.

Comparative information for the net movement in funds in the previous year is as follows:

Transfers
Brought between Carried
2020 forward Income Expenditure funds forward
£ £ £ £ £
Restricted Funds
Specialist casework - 190,545 191,140 595 -
Advice volunteer training - 57,750 57,896 146 -
Generalist advice provision - 50,750 50,988 238 -
────── ────── ────── ────── ──────
Total restricted Funds - 299,045 300,024 979 -
────── ────── ────── ────── ──────
Unrestricted Funds ────── ────── ────── ────── ──────
General 110,335 96,504 118,756 (979) 87,104
────── ────── ────── ────── ──────
────── ────── ────── ────── ──────
TOTAL FUNDS £110,335 £395,549 £418,780 £Nil £87,104
══════ ══════ ══════ ══════ ══════

19

ISLAND ADVICE CENTRE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

/contd…

15. ANALYSIS OF NET ASSETS Unrestricted Restricted Total
BETWEEN FUNDS Funds Funds Funds
2021 2021 2021
2021 £ £ £
Current assets 131,097 15,521 146,618
Current liabilities (15,076) - (15,076)
────── ────── ──────
As at 31 March 2021 £116,021 £15,521 £131,542
══════ ══════ ══════
Comparative information for the analysis of net assets between funds in the previous year is as
follows:
Unrestricted Restricted Total
Funds Funds Funds
2020 2020 2020
2020 £ £ £
Current assets 103,325 1,966 105,291
Current liabilities (16,221) (1,966) (18,187)
────── ────── ──────
As at 31 March 2020 £87,104 £Nil £87,104
══════ ══════ ══════

16. TAXATION

As a registered charity, Island Advice Centre is exempt from taxation under Part 11 of the Corporation Tax Act 2010 and Section 256 of the Taxation of Chargeable Gains Act 1992.

17. COMMITMENTS

The total minimum lease payments due under non-cancellable operating leases are as follows:

2021 2020
£ £
Within one year 7,970 7,970
Within two and five years 4,713 6,284
────── ──────
£12,683 £14,254
══════ ══════

18. CONTINGENT ASSETS

The charity has been awarded several multi-year grants with performance-related conditions or specified/implied timeframes which preclude recognition of the full amount. The following contingent assets as at 31 March 2021 are therefore disclosed:

£
London Borough of Tower Hamlets 100,000 (Trainee advice project)
Trust for London 42,500 (Specialist casework)
City Bridge Trust 76,100 (Welfare benefits advice)
Thames Water Trust Fund 20,056 (Debt advice)
East End CAB Partnership 188,694 (Generalist welfare and debt advice)
Children’s Society 7,463 (Advice volunteer training)
───────
£434,813 
═══════

20