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2023-03-31-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 2023

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 2023

Page
Trustees’ Annual Report 1 - 10
Independent Auditor’s Report 11- 14
Statement of Financial Activities 15
Balance Sheet 16
Notes to the Financial Statements 17 – 24

TRUSTEES’ ANNUAL REPORT

ISLAND ADVICE CENTRE (A company limited by guarantee)

FOR THE YEAR ENDED 31 MARCH 2023

The trustees present their report and financial statements for the year ended 31 March 2023.

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 Shabnam Sharmin Treasurer Steve Lake Chris Parsons Thomas Siggers Simon Lanaria Resigned 17.11.22 Godline Pushparajan Stephanie Dickinson

Centre Manager

Sarah Sauvat

Registered Office and Principal Address

Island House Roserton Street London E14 3PG

Auditor

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 2023 / contd….

OBJECTIVES AND ACTIVITIES

Main objective and mission

The main objective and mission of Island Advice Centre (Island Advice) is to provide free housing, debt, welfare, and generalist advice to poor persons resident in Tower Hamlets and nearby areas; to provide an accessible service in terms of location, disability, and language; and to provide home visits to persons with disabilities.

Advice is given by suitably qualified advisers who are paid and by volunteers who are attending the Volunteer Training Project.

Main activities

To deliver its objective and mission, Island Advice offers one-off advice and information, casework including representation at court and tribunals, training and placements for advice volunteers, and peer support to other front-line advice agencies.

Services are provided through:

OUR ADVICE AND CASEWORK

The advisers at Island Advice aim to take a holistic approach to client issues and will make referrals to specialist advisers within Island Advice or to other agencies, where appropriate, to help the client fully resolve their problems. This may include digital inclusion, money management, ESOL classes, health related groups, solicitors, and / or other support.

During the year, the demands for the organisation’s services related to welfare benefits (46%), housing (27%), debt (18%), financial capability (5%), and other generalist advice (4%).

2

ISLAND ADVICE CENTRE (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2023 / contd….

Welfare Benefits

Our advisers deal with hundreds of enquiries a year including advice about entitlement to benefits, “better off calculations”, incorrect decisions, reviews, mandatory reconsiderations, appeals and tribunal hearings. Our work mainly consists of increasing peoples’ income through advice and support, by helping them to access their legal rights relating to their entitlement(s) and local support provision often involving disputing incorrect decisions, requiring complex casework and representation at tribunal hearings.

In 2022/23, Universal Credit (UC) remains the greatest type of enquiry, especially in regard to additional entitlement elements and the financial implications of missing out on any element which may become retrospectively due following reconsideration and appeals. Another UC area of high demand was related to inaccurate housing element calculations due to the breakdown of relationships and associated untidy tenancies.

We continued to see an increase in residents requiring help with applications for disability benefits, including Personal Independence Payment (PIP), Disability Living Allowance (DLA), Attendance Allowance (AA) and Limited Capability for Work assessments; often due to the current award becoming due for review. As award reviews have resumed, mandatory reconsideration and appeals demand has increased. The length of time between lodging appeals to 1st tier tribunal and hearing date has returned to pre pandemic time. Face to face hearings have now resumed; we currently support a minimum of 5/6 individuals at tribunal appeals per month on average.

Housing

The housing crisis in London is becoming more and more evident each year, and as a result, the demand for housing advice continues to grow.

The poor living conditions within social housing have become more prevalent, and Island Advice had a considerable increase in requests from vulnerable clients suffering from these conditions. This was especially true for social tenants, who experienced issues due to overcrowding and/or medical conditions and disrepairs.

As more residents became eligible to claim Universal Credit, we found that its administration often puts renters in further hardship as the payments cycle leads to arrears, and the deduction for arrears is governed by Universal Credit. Furthermore, the assessments do not always consider previous court orders or do not honour payment orders. As noted previously, untidy tenancy issues especially in cases of relationship breakdowns or bereavement often lead to miscalculation in housing costs entitlement.

The cost-of-living crisis led to considerable rent increases in the private sector and increases in service charges in the social housing sector. No-fault evictions and repossession proceedings due to increasing levels of rent arrears are resuming and likely will exceed prepandemic level next year.

3

ISLAND ADVICE CENTRE (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2023 / contd….

The table below shows the recent trends in our housing work:

Debt

Island Advice Centre is a licensed debt advice provider which provides specialist debt casework. Our experienced caseworker is CertMAP qualified and an approved intermediary for Debt Relief Order (DRO) applications.

Over the last year, we continued to offer advice in debt matters including rent arrears, council tax arrears, utility debts, benefits overpayments, and non-priority debts such as credit cards and loan.

Our debt advice approach is holistic, and our casework is extensive. We ensure we go beyond the presenting point and address all underlying issues including ensuring income maximization is considered and liability issues are explored.

Financial Capability

With the current benefit cuts and the high costs of living, managing everyday bills have become difficult for many clients whose finances have been stretched to the limit. With the help of the Thames Water Assistance Fund, Island Advice has continued to play a vital role in helping Thames Water customers who are struggling to pay their utility bills. We have also been able to assist clients to reduce their bills through financial capability intervention, and we have helped them access discounts and assistance funds.

Our most destitute clients have received emergency fuel and food vouchers and grants for essentials goods during period of crisis, alongside assistance with their welfare rights matters.

4

ISLAND ADVICE CENTRE (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2023 / contd….

The Thames Water project, integrated with our debt casework, has enabled many clients to obtain assistance with insolvency fees (for DRO or Bankruptcy) which they would otherwise not be able to pay.

OUR OUTREACH SERVICES

Tower Hamlets Connect

A consortium, led by Age UK, continued delivering advice services in GP surgeries. As partners of this consortium, we delivered advice sessions across six GP Surgeries.

----- Start of picture text -----
City Square Medical Group Monday (fortnightly), 9am to 12 noon
Spitalfields Practice Every Monday, 1pm to 4pm
Chrisp Street Health Centre Every Tuesday, 9am till 12 noon
The Barkantine Practice Wednesdays (fortnightly), 9am to 12 noon
Island Health Every Wednesday, 1pm till 4pm
Wapping Group Practice Every Friday, 9am to 12 noon
----- End of picture text -----

These services help relieve pressures on GPs and other health professionals in busy health centres.

East London Advanced Technology Training (ELATT)

Island Advice provides weekly term-time advice sessions to ELATT students during the academic year to help them resolve benefits, housing, debt, and other issues of concern. This relieves some pressure on students and supports them to complete their course of studies.

Tower Hamlets Community Advice Network (THCAN)

Island Advice leads the Tower Hamlets Community Advice Network, which is a partnership of local advice centres that work together to ensure Tower Hamlets residents have access to free, high-quality advice and representation in social welfare law (welfare benefits, debt, housing, employment, immigration, etc).

Through THCAN, Island Advice provides:

5

ISLAND ADVICE CENTRE (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2023 / contd….

OUR TRAINING AND EDUCATION OFFER

Volunteer Training Project and Learning to Advise Certificate

Volunteers are one of Island Advice’s most valuable assets; they help to deliver the muchneeded advice services we provide.

Through our Volunteer Training Project, training and development opportunities are provided for volunteers and front-line workers in view of developing their skills and knowledge and completing the Learning to Advise Course alongside relevant work experience.

This enables many of our volunteers to move into employment. In the 2022 / 2023 cohort, 15 people completed and received their Learning to Advise certificate. These 15 were from various organisations, including Bromley by Bow Centre, Island Advice Centre (3), Island House, Limehouse Project (2), Poplar HARCA, Praxis (3), St Hildas, Tower Hamlets Carers Centre, and Tower Hamlets Homes (2).

Advice Work Training Workshops

Island Advice also delivered 12 advice work training workshops relating to benefits appeals, housing issues, benefits overview, immigration, and employment. A total of 178 participants attended these sessions.

City and Guilds NVQ in Advice & Guidance

A further 11 individuals completed City & Guilds NVQ in Advice & Guidance level 3 or 4 during the year 2022/23 while working in local advice centres including First Love Foundations, Bromley By Bow Centre, Account 3 and Island Advice Centre.

In Collaboration with Bromley Insights, Island Advice Centre delivered the first training course/cohort of specialist/hybrid Advice-Social Prescribing Link Workers in the UK.

The hybrid social welfare advice–social prescribing link worker has been developed in a number of areas in England, including several London boroughs as a response to the need to provide social welfare advice to social prescribing clients in the face of a severe shortage of welfare advice on the high street. Beyond being a pragmatic response to unmet need, it is also seen by some as a more holistic and effective model, as it means that social prescribing patients with less complex welfare rights issues can be seen by one person, who provides both the normal link worker role support and generic social welfare advice on basic social welfare issues.

Island Advice Centre

6

ISLAND ADVICE CENTRE (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2023 / contd….

HOW OUR ACTIVITIES DELIVER PUBLIC BENEFIT

The trustees, when exercising any powers or duties relating to 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:

ACHIEVEMENTS AND PERFORMANCE

During the year, Island Advice assisted over 2,000 clients and achieved almost £2 million in positive outcomes for clients. The following tables shows the details of this support.

----- Start of picture text -----
Welfare rights
Number of clients assisted 908
Appeals success rate 84.6%
Confirmed annual increase in income £385,942
Confirmed backdated benefits gained £38,841
Projected annual increase in income £695,339
Projected annual Other Gain £24,075
Total Financial Benefits £1,144,197
Housing
Number of clients assisted 662
Casework success rate 74%
Financial Outcome (benefits gain and compensation) £144,615
Debt
Number of clients assisted 472
Amount of income maximized £56,091
Amount of debt written off £279,541
Amount of debt managed £230,656
Insolvency procedures carried out on behalf of clients 21 Breathing Space
11 Debt relief Order
2 Bankruptcies
----- End of picture text -----

7

ISLAND ADVICE CENTRE (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2023

/ contd….

----- Start of picture text -----
Financial Capability
Number of clients assisted 251
Total debt written off £15,576
Amount of bills reduced through income maximization £22,975
Generalist Advice Only
Number of clients assisted 147
Projected annual increase in income £47,489
----- End of picture text -----

THE YEAR 2022 / 2023

Returning to a New Normal Post Pandemic

Since April 2022, Island Advice offered face-to-face appointments by default, but residents always have the choice to have telephone or digital consultation if this is their preference.

Training and workshop are now delivered via a mixture of face to face and digital means.

Cost of Living Crisis

By October 2022 ‘cost of living’ had become one of the most popular Google search terms in the UK – and affected us all.

Island Advice continued to be committed to support our residents during challenging times and to work to tackle the cost-of-living crisis for our clients. Unfortunately, poverty has been something our clients have always faced, but as more people face financial crisis, our support is even more crucial to assist them, particularly those that are the most vulnerable and destitute.

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, Social Action for Health, The Children’s Society, and City Bridge Trust; other funders included the London Legal Support Trust, Wakefield and Tetley, East End Community Foundation, Thames Water Trust, and Access to Justice. At the end of the reporting period the organisation was operating at a surplus.

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 total unrestricted funds at the year end were £116,981 (2022 : £118,731).

8

ISLAND ADVICE CENTRE (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2023

/ contd….

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 23rd May 1997 and updated on 29th June 1999.

Island Advice Centre is a registered charity and a company limited by guarantee.

Trustee appointment 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 appropriate information and access to relevant training.

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 are 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 the delivery of advice services and to carry out administrative support.

9

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF:

ISLAND ADVICE CENTRE (A company limited by guarantee)

FOR THE YEAR ENDED 31 MARCH 2023

Opinion

We have audited the financial statements of Island Advice Centre (the ‘charitable company’) for the year ended 31 March 2023 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 other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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.

11

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF:

ISLAND ADVICE CENTRE (A company limited by guarantee)

FOR THE YEAR ENDED 31 MARCH 2023

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 course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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 included within the trustees’ 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 (set out on page 10), 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.

12

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF:

ISLAND ADVICE CENTRE (A company limited by guarantee)

FOR THE YEAR ENDED 31 MARCH 2023

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 our procedures 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.

13

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF:

ISLAND ADVICE CENTRE (A company limited by guarantee)

FOR THE YEAR ENDED 31 MARCH 2023

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

2024

14

ISLAND ADVICE CENTRE (A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (Incorporating Income and Expenditure Account)

FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted Restricted Total Total
Notes Funds Funds 2023 2022
£ £ £ £
Income from:
Donations and legacies 2 - - - 10,188
Charitable activities 3 93,333 315,232 408,565 356,456
Investments 4 768 - 768 18
────── ────── ────── ──────
Total 94,101 315,232 409,333 366,662
────── ────── ────── ──────
Expenditure on:
Charitable activities 5 86,957 308,202 395,159 373,433
────── ────── ────── ──────
Total 86,957 308,202 395,159 373,433
────── ────── ────── ──────
Net income/(expenditure) 8 7,144 7,030 14,174 (6,771)
Transfers between funds 14 (8,894) 8,894 - -
────── ────── ────── ──────
Net movement in funds 14 (1,750) 15,924 14,174 (6,771)
Reconciliation of funds:
Total funds brought forward 14 118,731 6,040 124,771 131,542
────── ────── ────── ──────
Total funds carried forward 14 £116,981 £21,964 £138,945 £124,771
══════ ══════ ══════ ══════

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.

15

ISLAND ADVICE CEKfRE IA company limited by guarantee) (Company No: 03375266) BALANCE SHEET AS AT 31 MARCH 2023 2023 2022 Not8$ FIXED ASSETS Tangible assats CURRENT ASSETS Debtors Cash at bank and in hand 12 63.667 126,580 44.774 120,851 190.247 I65.￿5 CREDITORS Amounts falling due within one year 13 51,302 NET CURRENT ASSETS 138.945 124.771 NET ASSETS 15 £138.945 £124,771 FUNDS Restricted Unrestricted 14 14 21,964 116,981 8,040 118,731 14 £138.945 £124,771 The financial statemerbts have been prepared in a¢coTdan¢g with the sp8c4al provisions for small companies under Part 15 ofthe Companie5 Act 20(b. Thè ffinancial ststerngrrts were apkyoved the 8oard of Trustses on behalf ty.. and signed on Ils Stephanie Dickinson Trustee The notes form part of the finantial statemènts. 16

ISLAND ADVICE CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

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 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.

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ISLAND ADVICE CENTRE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023 /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 2023 2022
£ £ £ £
Donations - - - 10,188
────── ────── ────── ──────
£Nil £Nil £Nil £10,188
══════ ══════ ══════ ══════
All of the £10,188 recognised in 2022 related to unrestricted funds.
3. INCOME FROM CHARITABLE Unrestricted Restricted Total Total
ACTIVITIES Funds Funds 2023 2022
£ £ £ £
Grants and contracts:
Specialist casework - 153,583 153,583 157,904
Advice volunteer training 12,550 76,419 88,969 72,684
Generalist advice provision 80,783 85,230 166,013 125,868
────── ────── ────── ──────
£93,333 £315,232 £408,565 £356,456
══════ ══════ ══════ ══════

Of the £356,456 recognised in 2022, £59,058 related to unrestricted funds and £297,398 related to restricted funds.

18

ISLAND ADVICE CENTRE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

/contd…

4. INVESTMENT INCOME

Bank interest

Unrestricted Restricted Total Total Funds Funds 2023 2022 £768 £Nil £768 £18 ══════ ══════ ══════ ══════

All of the £18 recognised in 2022 was unrestricted funds.

5. ANALYSIS OF EXPENDITURE ON Direct Support Total Total
CHARITABLE ACTIVITIES Costs Costs 2023 2022
£ £ £ £
Staff costs 267,935 52,659 320,594 307,424
Direct project costs 7,805 - 7,805 6,981
Subscriptions and insurance - 5,757 5,757 1,998
Stationery and postage - 4,278 4,278 5,289
Payroll services - 450 450 665
Premises costs - 21,583 21,583 19,803
Publications - 422 422 -
Computer expenses - 4,798 4,798 -
Volunteers’ expenses 449 - 449 315
Staff and volunteer training and recruitment - 2,536 2,536 5,527
Sundry expenses - 686 686 20
Telephone and internet - 4,093 4,093 9,021
Travelling costs - 37 37 -
Professional fees - 6,633 6,633 6,288
Bookkeeping and Finance - 3,702 3,702 -
NVQ assessors fees 7,139 - 7,139 5,758
Governance costs (note 7) - 4,197 4,197 4,344
────── ────── ────── ──────
£283,328 £111,831 £395,159 £373,433
══════ ══════ ══════ ══════

Of the £373,433 expenditure recognised in 2022, £65,298 was charged to unrestricted funds and £308,135 was charged to restricted funds.

6. EXPENDITURE ON CHARITABLE Direct Support Total Total
ACTIVITIES Costs Costs 2023 2022
£ £ £ £
Specialist casework 102,057 44,496 146,553 157,253
Advice volunteer training 67,761 21,208 88,969 75,803
Generalist advice provision 113,510 46,127 159,637 140,377
────── ────── ────── ──────
£283,328 £111,831 £395,159 £373,433
══════ ══════ ══════ ══════

19

ISLAND ADVICE CENTRE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

/contd…

7. GOVERNANCE COSTS 2023 2022
£ £
Staff costs 2,397 2,204
Auditor’s remuneration 1,800 2,140
────── ──────
£4,197 £4,344
══════ ══════
8. NET INCOME/(EXPENDITURE) 2023 2022
The net expenditure for the year is stated after charging:
Auditor’s remuneration £1,800 £2,140
Operating lease rentals £15,625 £14,620
══════ ══════
9. STAFF COSTS 2023 2022
£ £
Wages and salaries 279,492 269,957
Social security 22,911 19,335
Pension costs 20,588 20,336
────── ──────
£322,991 £309,628
══════ ══════
2023 2022
No. No.
Average number of full-time equivalent employees 9 9
══ ══
2023 2022
No. No.
Average monthly number of employees 10 10
══ ══

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 £47,934 (2022 : £44,084). Under FRS 102, employee benefits incudes gross salary, employer’s NIC and employer’s pension contributions.

20

NOTES TO THE FINANCIAL STATEMENTS

ISLAND ADVICE CENTRE (A company limited by guarantee)

FOR THE YEAR ENDED 31 MARCH 2023

/contd…

10. TRUSTEES’ REMUNERATION AND EXPENSES

The Trustees received no remuneration or reimbursed expenses in 2023 or 2022.

There were no related party transactions in either year other than those disclosed in Note 9.

11. TANGIBLE FIXED ASSETS Computer
equipment
£
Cost
As at 1 April 2022 and at 31 March 2023 7,612
──────
Depreciation
As at 1 April 2022 and at 31 March 2023 7,612
──────
Net book value
As at 31 March 2023 £Nil
══════
As at 31 March 2022 £Nil
══════
12. DEBTORS 2023 2022
Prepayments and accrued income £63,667 £44,774
══════ ══════
13. CREDITORS– Amounts falling due within one year 2023 2022
£ £
Accruals and deferred income 43,665 32,322
Social security and other taxes 137 8,532
Other creditors 7,500 -
────── ──────
£51,302 £40,854
══════ ══════
DEFERRED INCOME ANALYSIS 2023 2022
£ £
As at 1 April 23,750 -
Additions during the year 35,389 23,750
Amounts released to income from previous year (23,750) -
───── ──────
As at 31 March £35,389 £23,750
══════ ══════

Deferred income of £35,389 (2022 : £23,750) included above relates to grant income received during the year but relating to future accounting periods.

21

ISLAND ADVICE CENTRE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

/contd…

14. MOVEMENT IN FUNDS Transfers
Brought between Carried
2023 forward Income Expenditure funds forward
£ £ £ £ £
Restricted Funds
Specialist Casework
LCF – D&MM 621 9,434 9,434 - 621
LCF – WR Specialist 831 9,434 9,434 - 831
City Bridge Trust -
Welfare 680 25,600 25,600 - 680
Trust for London -
Housing 2,008 40,500 40,500 - 2,008
Thames Water Trust
Fund – Water Debt 1,770 20,056 20,056 - 1,770
East End Community
Foundation – UC
Project - 23,606 16,576 7,030
London Legal Support
Trust - 24,953 24,953 - -
Advice Volunteer Training
The Church of England
Children’s Society 130 26,419 26,419 - 130
London Borough of
Tower Hamlets - VP - 50,000 50,000 - -
Generalist Advice Provision
LCF – Lap 8 8,817 75,480 75,480 - 8,817
Wakefiled 77 9,750 9,750 - 77
London Legal Support
Trust (8,744) - - 8,744 -
Other (150) - - 150 -
────── ────── ────── ────── ──────
Total Restricted Funds 6,040 315,232 308,202 8,894 21,964
────── ────── ────── ────── ──────
Unrestricted Funds ────── ────── ────── ────── ──────
General 118,731 94,101 86,957 (8,894) 116,981
────── ────── ────── ────── ──────
────── ────── ────── ────── ──────
TOTAL FUNDS £124,771 £409,333 £395,159 £Nil £138,945
══════ ══════ ══════ ══════ ══════

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

22

ISLAND ADVICE CENTRE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

/contd…

14. MOVEMENT IN FUNDS /contd…

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

Transfers
Brought between Carried
2022 forward Income Expenditure funds forward
£ £ £ £ £
Restricted Funds
Specialist Casework
LCF – D&MM - 20,600 19,979 - 621
LCF – WR Specialists - 22,248 21,417 - 831
City Bridge Trust -
Welfare 506 50,500 50,326 - 680
Trust for London -
Housing 3,905 42,500 44,397 - 2,008
Thames Water Trust
Fund – Water Debt 848 20,056 19,134 - 1,770
East End Community
Foundation – UC
Project - 2,000 2,000 - -
Advice Volunteer Training
The Church of England
Children’s Society 2,100 10,244 12,214 - 130
London Borough of
Tower Hamlets - VP - 50,000 50,000 - -
Generalist Advice Provision
LCF – Lap 8 4,152 51,500 46,835 - 8,817
Wakefiled - 27,750 27,673 - 77
LCR 14,160 - 14,160 - -
London Legal Support
Trust (10,000) - - 1,256 (8,744)
Other (150) - - - (150)
────── ────── ────── ────── ──────
Total Restricted Funds 15,521 297,398 308,135 1,256 6,040
────── ────── ────── ────── ──────
Unrestricted Funds ────── ────── ────── ────── ──────
General 116,021 69,264 65,298 (1,256) 118,731
────── ────── ────── ────── ──────
────── ────── ────── ────── ──────
TOTAL FUNDS £131,542 £366,662 £373,433 £Nil £124,771
══════ ══════ ══════ ══════ ══════

23

ISLAND ADVICE CENTRE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

/contd…

15. ANALYSIS OF NET ASSETS Unrestricted Restricted Total
BETWEEN FUNDS Funds Funds Funds
2023 2023 2023
2023 £ £ £
Current assets 132,894 57,353 190,247
Current liabilities (15,913) (35,389) (51,302)
────── ────── ──────
As at 31 March 2023 £116,981 £21,964 £138,945
══════ ══════ ══════

Comparative information for the analysis of net assets between funds in the previous year is as follows:

follows:
Unrestricted Restricted Total
Funds Funds Funds
2022 2022 2022
2022 £ £ £
Current assets 135,835 29,790 165,625
Current liabilities (17,104) (23,750) (40,854)
────── ────── ──────
As at 31 March 2022 £118,731 £6,040 £124,771
══════ ══════ ══════

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:

2023 2022
£ £
Within one year 7,970 7,970
Within two and five years 1,571 3,142
────── ──────
£9,541 £11,112
══════ ══════

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. At 31 March 2023 the charity had contingent asse of £333,391 (2022 : £169,946)

24