2025-03-31-accounts

Company Registration Number: 04573848 Charity Registration Number: 1096071

Middlesbrough Citizens Advice Bureau

Financial Statements

For the Year Ending 31 March 2025

JANE ASCROFT ACCOUNTANCY LIMITED

Chartered accountants Enterprise House Harmire Enterprise Park Barnard Castle County Durham DL12 8XT

Middlesbrough Citizens Advice Bureau

Financial Statements

Year Ended 31 March 2025

	Page
Trustees' Annual Report (Incorporating the Director's Report)	1
Independent Examiner's Report to the Trustees	5
Statement of Financial Activities (Including Income and Expenditure Account)	6
Statement of Financial Position	7
Statement of Cash Flows	8
Notes to the Financial Statements	9
The Following Pages Do Not Form Part of the Financial Statements
Detailed Statement of Financial Activities	24

Middlesbrough Citizens Advice Bureau

Trustees' Annual Report (Incorporating the Director's Report)

Year Ended 31 March 2025

The trustees, who are also the directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended 31 March 2025.

Objectives and Activities

The charity's objects as set out in its Memorandum and Articles of Association are to 'promote any charitable purpose for the benefit of the community in Middlesbrough and surrounding areas by the advancement of education, the protection and preservation of health and the relief of poverty, sickness and distress.' In common with all Citizens Advice Bureaux the charity aims to:

a) Ensure that individuals do not suffer through ignorance of their rights and responsibilities or of the service available or through an inability to express their needs effectively. b) Exercise a responsible influence on the development of social policies and the service both locally and nationally. c) Provide a service which is independent and which provides free, confidential, impartial advice to everybody regardless of race, gender, sexuality or disability.

Ensuring our work delivers our aims

We review our aims, objectives and activities each year to ensure that our activities have met our objectives and that any planned activities will continue to do so. We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities.

The focus of our work

The charity seeks funding from a wide variety of sources and uses this funding to meet any identified advice need within the town. All our activities are focused on providing free advice to the local population and are undertaken to further our charitable objects for the public benefit.

Who used and benefited from our services?

The charity provided its advice services from its main office in Middlesbrough Town Centre and from 5 community venues throughout Middlesbrough. Many projects are aimed at specific groups such as people with mental health problems, people with community care needs and people with cancer. However most of our services are open to all.

Achievements and Performance

In 2024-25 we dealt with 14,786 (15,416 in 2023-24) issues brought to us by 7,128 clients (8,512 in 2023-24). The main focus of our work continues to be welfare benefits, which accounted for 36% of all issues, a drop of some 5% from the previous year. Debt issues rose by 2% to 18% of all enquiries. Immigration was our next largest area of enquiry, increasing from 8% in 2023-24 to 12% - largely fuelled by the replacement of biometric residency permits with e-visas and associated issues.

The major change in our services came about in June 2024 when we closed our advocacy service. The organisation had delivered both statutory and non-statutory advocacy services since 1998, and the decision to leave this area of work was difficult to make, but necessary, since (from October 2023) changes to the structure of the contracts to deliver advocacy made continuation unsustainable financially.

The organisation met all of its contractual requirements relating to performance.

1

Middlesbrough Citizens Advice Bureau

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year Ended 31 March 2025

Financial Review

The charity has suffered a significant decrease in reserves during the 2024/25 financial year weith reserves falling to £64,225 as at 31st March 2025. This was caused by the following exceptional events:

• A poorly performing advocacy project needing funding from reserves of £36,332. This project has now ceased.

• A change in the method of funding for the Warm Up North project resulting in the project running at a significant loss of £46,793. This project has also now ceased.

• A VAT specialist advising that VAT had been incorrectly accounted for on the advocacy project over a number of years. As a result irrecoverable input VAT of £17,785 is shown in the accounts as a one off cost covering previous years' input VAT reclaimed in error.

All of these issues have now been rectified and the charity is budgeting a surplus of £63,575 which will boost reserves up to a more reasonable £127,800 by 31st March 2026. The reserves policy requires reserves to cover 3 months running costs, excluding payments to partners and depreciation, which is currently £170,000. The trustees aim to build reserves back up to this level over the next few years.

Principal Funding Sources

The principal funding sources are shown in note 6 to the accounts on page 13. The charity relies on grants from Central and Local Government as well as from other charitable organisations.

The charity's funds have to be available at short notice and so all funds are currently held either in the bank current or reserve account. The Memorandum and Articles of Association permit the trustees to make any investment as they see fit.

2

Middlesbrough Citizens Advice Bureau

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year Ended 31 March 2025

Structure, Governance and Management

Middlesbrough Citizens Advice Bureau is a company limited by guarantee. It was incorporated on 25th October 2002 and registered as a charity on 19th February 2003. In the event of the charity being wound up, members are required to contribute an amount not exceeding £1.

Recruitment and appointment of trustees

The board consists of not less than four and not more than 18 trustees. Trustees are either:

 Elected by membership at the Annual General Meeting, in which case they will hold office from the conclusion of that meeting. No more than two may be voluntary staff. Or

 Nominated by member organisations. The maximum number of such trustees is five of which a maximum of two will be from Middlesbrough Council. Or

 Co-opted by the trustee board. Trustees so appointed cannot exceed two-fifths of the total number of trustees.

All elected trustees retire from office at the third Annual General Meeting following the Annual General Meeting at which they were elected but they may be re-elected. All nominated or co-opted trustees retire from office at the third Annual General Meeting following the ordinary meeting of the trustee board at which they were appointed, but they too may seek re-election.

Organisational structure

The charity is an autonomous body. The trustees make strategic decisions about the charity and the day to day running of the Bureau is delegated to the Chief Executive and his team. The Chief Executive is responsible for ensuring that the aims and objectives of the charity are met. The board meets every three months to consider reports from the Chief Executive and other staff members and trustees are involved at other times in the administration of the Bureau.

Trustee Induction and Training

The Bureau has developed an induction program using its own material and material from Citizens Advice and the Charity Commission. The Bureau also aims to provide 2 or 3 training sessions per annum for trustees covering matters such as employment rights, key funders and trustee responsibilities.

Risk Management

During the year the trustees have undertaken a formal risk assessment process which has enabled them to identify the risks to which the charity is exposed and put in place measures to mitigate those risks.

Related parties

None of the trustees receives remuneration or any other benefit relating to their work for the charity. The charity is affiliated to the National Association of Citizens Advice Bureaux. Middlesbrough Council provides the charity with some core funding and is able to nominate a maximum of two trustees.

Reference and Administrative Details

Registered charity name Middlesbrough Citizens Advice Bureau Charity registration number 1096071 Company registration number 04573848 Principal office and registered 3 Bolckow Street office Middlesbrough TS1 1TH

3

Middlesbrough Citizens Advice Bureau

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year Ended 31 March 2025

The Trustees

Mr J Broadbent Ms K Leonard (Treasurer) Ms R Surrey Mr C Wilson Mr E Ndhovlu Company Secretary Mr J M Daniels Independent Examiner Jane Ascroft FCA MA (Cantab) Enterprise House Harmire Enterprise Park Barnard Castle County Durham DL12 8XT

Small Company Provisions

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

The trustees' annual report was approved on .............................. and signed on behalf of the board of trustees by:

Mr J M Daniels Charity Secretary

4

Middlesbrough Citizens Advice Bureau

Independent Examiner's Report to the Trustees of Middlesbrough Citizens Advice Bureau

Year Ended 31 March 2025

I report to the trustees on my examination of the financial statements of Middlesbrough Citizens Advice Bureau ('the charity') for the year ended 31 March 2025.

Responsibilities and Basis of Report

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

Having satisfied myself that the 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 the 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

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

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

1. accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or

2. the financial statements do not accord with those records; or

3. the financial statements 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

4. the financial statements 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.

Jane Ascroft FCA MA (Cantab) Independent Examiner

Enterprise House Harmire Enterprise Park Barnard Castle County Durham DL12 8XT

5

Middlesbrough Citizens Advice Bureau

Statement of Financial Activities (including income and expenditure account)

Year Ended 31 March 2025

			2025		2024
		Unrestricted	Restricted
		funds	funds	Total funds	Total funds
	Note	£	£	£	£
Income and endowments
Donations and legacies	5	1,361	–	1,361	–
Charitable activities	6	102,682	558,932	661,614	845,500
Investment income	7	1,886	–	1,886	1,881
Other income	8	10,000	–	10,000	–
		─────────	─────────	─────────	─────────
Total income		115,929	558,932	674,861	847,381
		═════════	═════════	═════════	═════════
Expenditure
Expenditure on charitable activities	9,10	184,077	618,184	802,261	881,217
		─────────	─────────	─────────	─────────
Total expenditure		184,077	618,184	802,261	881,217
		═════════	═════════	═════════	═════════
		─────────	─────────	─────────	─────────
Net expenditure		(68,148)	(59,252)	(127,400)	(33,836)
		═════════	═════════	═════════	═════════
Transfers between funds		(114,840)	114,840	–	–
		─────────	─────────	─────────	─────────
Net movement in funds		(182,988)	55,588	(127,400)	(33,836)
Reconciliation of funds
Total funds brought forward		301,167	102,393	403,560	437,396
		─────────	─────────	─────────	─────────
Total funds carried forward		118,179	157,981	276,160	403,560
		═════════	═════════	═════════	═════════

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 9 to 22 form part of these financial statements.

6

Middlesbrough Citizens Advice Bureau

Statement of Financial Position

31 March 2025

		2025	2024
	Note	£	£
Fixed Assets
Tangible fixed assets	17	57,296	74,203
Current Assets
Debtors	18	89,467	80,872
Cash at bank and in hand		295,703	277,193
		─────────	─────────
		385,170	358,065
Creditors: amounts falling due within one year	19	160,572	26,700
		─────────	─────────
Net Current Assets		224,598	331,365
		─────────	─────────
Total Assets Less Current Liabilities		281,894	405,568
Provisions	20	5,734	2,008
		─────────	─────────
Net Assets		276,160	403,560
		═════════	═════════
Funds of the Charity
Restricted funds		157,981	102,393
Unrestricted funds		118,179	301,167
		─────────	─────────
Total charity funds	22	276,160 ═════════	403,560 ═════════

For the year ending 31 March 2025 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476;

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

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

These financial statements were approved by the board of trustees and authorised for issue on ........................, and are signed on behalf of the board by:

Ms K Leonard (Treasurer) Trustee

The notes on pages 9 to 22 form part of these financial statements.

7

Middlesbrough Citizens Advice Bureau

Statement of Cash Flows

Year Ended 31 March 2025

	2025	2024
	£	£
Cash Flows from Operating Activities
Net expenditure	(127,400)	(33,836)
Adjustments for:
Depreciation of tangible fixed assets	16,907	16,907
Other interest receivable and similar income	(1,886)	(1,881)
Accrued income	(11,635)	(68,607)
Changes in:
Trade and other debtors	3,243	36,757
Trade and other creditors	133,669	(29,234)
Provisions and employee benefits	3,726	34
	─────────	────────
Cash generated from operations	16,624	(79,860)
Interest received	1,886	1,881
	────────	────────
Net cash from/(used in) operating activities	18,510	(77,979)
	════════	════════
Net Increase/(Decrease) in Cash and Cash Equivalents	18,510	(77,979)
Cash and Cash Equivalents at Beginning of Year	277,193	355,172
	─────────	─────────
Cash and Cash Equivalents at End of Year	295,703	277,193
	═════════	═════════

The notes on pages 9 to 22 form part of these financial statements.

8

Middlesbrough Citizens Advice Bureau

Notes to the Financial Statements

Year Ended 31 March 2025

1. General Information

The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is 3 Bolckow Street, Middlesbrough, TS1 1TH.

2. Statement of Compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Companies Act 2006.

3. Accounting Policies

Basis of Preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going Concern

There are no material uncertainties about the charity’s ability to continue.

Judgements and Key Sources of Estimation Uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The trustees consider that there are no significant estimates or judgements affecting these financial statements.

Fund Accounting

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the purposes of the charity.

Designated funds are unrestricted funds earmarked by the trustees for specific purposes.

Restricted funds are subjected to restrictions on their expenditure imposed by the donor.

9

Middlesbrough Citizens Advice Bureau

Notes to the Financial Statements (continued)

Year Ended 31 March 2025

3. Accounting Policies (continued)

Income

All income is included in the statement of financial activities when the charity is entitled to the income, any performance related conditions attached have been met or are fully within the control of the charity, the income is considered probable and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

Donations and legacy income is received by way of donations, legacies, grants and gifts and is included in full in the Statement of Financial Activities when receivable. Where legacies have been notified to the charity but the criteria for income recognition have not been met, the legacy is treated as a contingent asset and disclosed if material. Grants, where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.

Donated services and facilities are included at the value to the charity, being the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market.

Investment income is included when receivable.

Income from charitable trading activity is accounted for when earned.

Income from grants, where related to performance and specific deliverables, are accounted for as the charity earns the right to consideration by its performance.

Expenditure

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates:

Costs of raising funds comprise the costs associated with attracting donations, grants and legacies and the costs of trading for fundraising purposes.

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.

Other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.

All costs are allocated between the expenditure categories of the SOFA on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis, as set out in the notes to the accounts.

Operating Leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

10

Middlesbrough Citizens Advice Bureau

Notes to the Financial Statements (continued)

Year Ended 31 March 2025

3. Accounting Policies (continued)

Tangible Assets

Assets costing £500 or more are capitalised as tangible fixed assets and are carried at cost, net of depreciation and any provision for impairment.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Freehold Buildings - 4% straight line Office Equipment - 10% straight line Computer Equipment - 33% straight line

Impairment of Fixed Assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Financial Instruments

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Defined Contribution Plans

The company participates in a multi-employer scheme which provides benefits to some 1,300 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme. The company must recognise a liability measured as the present value of contributions payable that arise from the deficit recovery agreement and the resulting expense in the income and expenditure account ie the unwinding of the discount rate as a finance cost in the period in which it arises. See note 19 to the accounts for further information.

11

Middlesbrough Citizens Advice Bureau

Notes to the Financial Statements (continued)

Year Ended 31 March 2025

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Accrued income and tax recoverable is included at the best estimate of the amounts receivable at the balance sheet date.

Cash at Bank and in Hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Creditors

Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.

Taxation

The company 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 company 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.

4. Limited by Guarantee

The company is limited by guarantee. At 31st March 2025 there were 5 members each of whom had undertaken to contribute an amount not exceeding £1 in the event of a winding up.

5. Donations and Legacies

	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2025	Funds	2024
	£	£	£	£
Donations
Donations and gifts	1,361	1,361	–	–
	═══════	═══════	════	════

12

Middlesbrough Citizens Advice Bureau

Notes to the Financial Statements (continued)

Year Ended 31 March 2025

6. Charitable Activities

			Unrestricted	Restricted	Total Funds
			Funds	Funds	2025
			£	£	£
	Middlesbrough Council - Core funding		88,000	–	88,000
	Advocacy Service		10,472	–	10,472
	MASDAP		–	160,655	160,655
	Middlesbrough Council - Hubs		–	142,500	142,500
	CATCH		–	39,817	39,817
	Macmillan Cancer Support		–	30,000	30,000
	BPA - Access to Justice		–	58,189	58,189
	Mental Health		–	28,000	28,000
	MFTV		–	19,876	19,876
	Warm Up North		–	(3,017)	(3,017)
	Northern Powergrid		–	26,293	26,293
	LEAP		–	16,986	16,986
	National Lottery Schools		–	39,633	39,633
	Other income from charitable activities		4,210	–	4,210
			─────────	─────────	─────────
			102,682	558,932	661,614
			═════════	═════════	═════════
			Unrestricted	Restricted	Total Funds
			Funds	Funds	2024
			£	£	£
	Middlesbrough Council - Core funding		88,000	–	88,000
	Advocacy Service		204,116	–	204,116
	MASDAP		–	156,428	156,428
	Middlesbrough Council - Hubs		–	142,500	142,500
	Macmillan Cancer Support		–	30,000	30,000
	BPA - Access to Justice		–	42,143	42,143
	Mental Health		–	28,000	28,000
	Step Forward Tees Valley - BBO		–	2,481	2,481
	MFTV		–	–	–
	Warm Up North		–	58,934	58,934
	Northern Powergrid		–	33,000	33,000
	Barclays		–	2,250	2,250
	National Lottery Schools		–	38,109	38,109
	Other income from charitable activities		18,413	1,126	19,539
			─────────	─────────	─────────
			310,529	534,971	845,500
			═════════	═════════	═════════
7.	Investment Income
		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2025	Funds	2024
		£	£	£	£
	Bank interest receivable	1,886	1,886	1,881	1,881
		═══════	═══════	═══════	═══════

13

Middlesbrough Citizens Advice Bureau

Notes to the Financial Statements (continued)

Year Ended 31 March 2025

8. Other Income

	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2025	Funds	2024
	£	£	£	£
Employment Allowance	10,000	10,000	–	–
	════════	════════	════	════
Expenditure on Charitable Activities by Fund Type
		Unrestricted	Restricted	Total Funds
		Funds	Funds	2025
		£	£	£
Costs of charitable activities		111,968	466,483	578,451
Support costs		72,109	151,701	223,810
		─────────	─────────	─────────
		184,077	618,184	802,261
		═════════	═════════	═════════
		Unrestricted	Restricted	Total Funds
		Funds	Funds	2024
		£	£	£
Costs of charitable activities		277,311	384,591	661,902
Support costs		111,558	107,757	219,315
		─────────	─────────	─────────
		388,869	492,348	881,217
		═════════	═════════	═════════

9. Expenditure on Charitable Activities by Fund Type

10. Expenditure on Charitable Activities by Activity Type

	Activities
	undertaken		Total funds	Total fund
	directly	Support costs	2025	2024
	£	£	£	£
Costs of charitable activities	578,451	213,624	792,075	874,065
Governance costs	–	10,186	10,186	7,152
	─────────	─────────	─────────	─────────
	578,451	223,810	802,261	881,217
	═════════	═════════	═════════	═════════
Analysis of Grants
			2025	2024
			£	£
Grants to Institutions
Age UK			17,500	21,875
CHAC			65,726	66,087
Middlesbrough Council			–	(14,000)
			────────	────────
			83,226	73,962
			────────	────────
Total grants			83,226 ════════	73,962 ════════

11. Analysis of Grants

Monies paid to CHAC, Middlesbrough Council and Age UK Teesside are for delivery of the Hub Advice/Benefits Take Up Campaign, for which Middlesbrough CAB is the lead partner.

14

Middlesbrough Citizens Advice Bureau

Notes to the Financial Statements (continued)

Year Ended 31 March 2025

12. Net Expenditure

Net expenditure is stated after charging/(crediting):

Net expenditure is stated after charging/(crediting):
	2025	2024
	£	£
Depreciation of tangible fixed assets	16,907	16,907
	════════	════════
Independent Examination Fees
	2025	2024
	£	£
Fees payable to the independent examiner for:
Independent examination of the financial statements	1,440	1,440
Other financial services	1,620	1,852
	───────	───────
	3,060	3,292
	═══════	═══════

13. Independent Examination Fees

14. Staff Costs

The total staff costs and employee benefits for the reporting period are analysed as follows:

	2025	2024
	£	£
Wages and salaries	509,699	601,424
Social security costs	34,519	40,692
Employer contributions to pension plans	12,800	14,631
Redundancy costs	13,807	–
	─────────	─────────
	570,825	656,747
	═════════	═════════

The average head count of employees during the year was 30 (2024: 36).

No employee received employee benefits of more than £60,000 during the year (2024: Nil).

Key Management Personnel

Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the charity. The total compensation paid to key management personnel for services provided to the charity was £45,249 (2024:£43,035).

15. Trustee Remuneration and Expenses

No trustees were paid either remuneration or expenses in the current or previous year.

16. Transfers Between Funds

During the year £114,840 was transferred from unrestricted to restricted funds. This represented match funding for projects or amounts needed to fund deficits on projects.

15

Middlesbrough Citizens Advice Bureau

Notes to the Financial Statements (continued)

Year Ended 31 March 2025

17. Tangible Fixed Assets

		Freehold	Office	Computer
		Buildings	Equipment	Equipment	Total
		£	£	£	£
	Cost
	At 1 April 2024 and 31 March 2025	393,967	45,566	6,292	445,825
		═════════	════════	═══════	═════════
	Depreciation
	At 1 April 2024	324,254	41,076	6,292	371,622
	Charge for the year	15,759	1,148	–	16,907
		─────────	────────	───────	─────────
	At 31 March 2025	340,013	42,224	6,292	388,529
		═════════	════════	═══════	═════════
	Carrying amount
	At 31 March 2025	53,954	3,342	–	57,296
		═════════	════════	═══════	═════════
	At 31 March 2024	69,713	4,490	–	74,203
		═════════	════════	═══════	═════════
18.	Debtors
				2025	2024
				£	£
	Trade debtors			19,948	23,296
	Prepayments and accrued income			69,519	57,576
				────────	────────
				89,467	80,872
				════════	════════
19.	Creditors: amounts falling due within	one year
				2025	2024
				£	£
	Trade creditors			5,884	17,159
	Accruals and deferred income			4,403	4,200
	Social security and other taxes			149,771	–
	Pension creditor			514	5,341
				─────────	────────
				160,572	26,700
				═════════	════════

20. Provisions

	Pensions
	and similar
	obligations
	£
At 1 April 2024	2,008
Remeasurements - Changes to the contribution schedule	5,684
Unwinding of the discount factor (interest expense)	53
Remeasurements - Impact of any changes in assumptions	36
Deficit contributions made in year	(2,047)
	───────
At 31 March 2025	5,734
	═══════

16

Middlesbrough Citizens Advice Bureau

Notes to the Financial Statements (continued)

Year Ended 31 March 2025

21. Pensions and Other Post Retirement Benefits

Defined contribution plans

The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £12,800 (2024: £14,631).

Scheme: TPT Retirement Solutions - The Growth Plan

The company participates in the scheme, a multi-employer scheme which provides benefits to some 521 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme. The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK. The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme. A full actuarial valuation for the scheme was carried out at 30 September 2023. This valuation showed assets of £514.9m, liabilities of £531.0m and a deficit of £16.1m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

From 1 April 2025 to 31 March 2028: £2,100,000 per annum (payable monthly)

Unless a concession has been agreed with the Trustee the term to 31 March 2028 applies.

Note that the scheme's previous valuation was carried out with an effective date of 30 September 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee asked the participating employers to pay additional contributions to the scheme as follows:

Deficit Contributions

From 1 April 2022 to 31 January 2025: £3,312,000 per annum (payable monthly)

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.

17

Middlesbrough Citizens Advice Bureau

Notes to the Financial Statements (continued)

Year Ended 31 March 2025

21. Pensions and Other Post Retirement Benefits (continued)

Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

Present Value of Provision

	2025	2024	2023
	£	£	£
Present value of provision	5,734	2,008	4,299
Reconciliation of opening and closing provisions
		2025	2024
		£	£
Provision at start of period		2,008	4,299
Unwinding of the discount factor (interest expense)		53	165
Deficit contribution paid		(2,047)	(2,457)
Remeasurements - Impact of any changes in assumptions		36	1
Remeasurements - Changes to the contribution schedule		5,684	Nil
Provision at end of period		5,734	2,008
Income and Expenditure Impact
		2025	2024
		£	£
Interest expense		53	165
Remeasurements - Impact of any change in assumptions		36	1
Remeasurements - Amendments to the contribution schedule		5,684	Nil
Costs recognised in income and expenditure accounts		5,773	166

*includes defined contribution schemes and future service contributions (i.e. excluding any deficit reduction payments) to defined benefit schemes which are treated as defined contribution schemes.

Assumptions

	2025	2024	2023
	%	%	%
Rate of discount	4.84	5.31	5.52

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

18

Middlesbrough Citizens Advice Bureau

Notes to the Financial Statements (continued)

Year Ended 31 March 2025

21. Pensions and Other Post Retirement Benefits (continued)

The following schedule details the deficit contributions agreed between the company and the scheme at each year end period:

		2025	2024	2023
		£	£	£
Year	1	2,046	2,047	2,457
Year	2	2,046	Nil	2,047
Year	3	2,046	Nil	Nil

The company must recognise a liability measured as the present value of the contributions payable that arise from the deficit recovery agreement and the resulting expense in the income and expenditure account i.e. the unwinding of the discount rate as a finance cost in the period in which it arises.

It is these contributions that have been used to derive the company's balance sheet liability.

22. Analysis of Charitable Funds

Unrestricted funds

Unrestricted funds
	At			At 31 March
	1 April 2024	Income	Expenditure	Transfers	2025
	£	£	£	£	£
General funds	181,454	105,457	(107,707)	(114,979)	64,225
Advocacy Service	–	10,472	(46,804)	36,332	–
Designated Fund -
Contingency	50,000	–	(13,807)	(36,193)	-
Fixed Asset funds	69,713	–	(15,759)	–	53,954
	─────────	─────────	─────────	─────────	─────────
	301,167	115,929	(184,077)	(114,840)	118,179
	═════════	═════════	═════════	═════════	═════════
	At				At 31 March
	1 April 2023	Income	Expenditure	Transfers	2024
	£	£	£	£	£
General funds	240,212	108,294	(88,899)	(78,153)	181,454
Advocacy Service	–	204,116	(284,211)	80,095	–
Designated Fund -
Contingency	50,000	–	–	–	50,000
Fixed Asset funds	85,472	–	(15,759)	–	69,713
	─────────	─────────	─────────	────────	─────────
	375,684	312,410	(388,869)	1,942	301,167
	═════════	═════════	═════════	════════	═════════

19

Middlesbrough Citizens Advice Bureau

Notes to the Financial Statements (continued)

Year Ended 31 March 2025

22. Analysis of Charitable Funds (continued)

Restricted funds

Restricted funds
	At				At 31 March
	1 April 2024	Income	Expenditure	Transfers	2025
	£	£	£	£	£
MASDAP	(16,527)	160,655	(161,961)	17,833	–
Middlesbrough Council
Hubs	78,142	142,500	(137,724)	–	82,918
Macmillan Cancer
Support	49,219	30,000	(23,830)	–	55,389
Mental Health	(18,081)	28,000	(33,748)	23,829	–
Warm Up North	5,442	(3,017)	(49,218)	46,793	–
MFTV	(3,337)	19,876	(21,675)	5,136	–
National Lottery Schools	(2,226)	39,633	(42,448)	5,041	–
Northern Powergrid	(4,842)	26,293	(36,864)	15,413	–
BPA - Access to Justice	14,603	58,189	(53,118)	–	19,674
CATCH	–	39,817	(39,959)	142	–
LEAP	–	16,986	(17,639)	653	–
	─────────	─────────	─────────	─────────	─────────
	102,393	558,932	(618,184)	114,840	157,981
	═════════	═════════	═════════	═════════	═════════
	At				At 31 March
	1 April 2023	Income	Expenditure	Transfers	2024
	£	£	£	£	£
MASDAP	(22,766)	156,428	(150,189)	–	(16,527)
Middlesbrough Council
Hubs	60,675	143,626	(126,159)	–	78,142
Macmillan Cancer
Support	41,878	30,000	(22,659)	–	49,219
Mental Health	(13,955)	28,000	(32,126)	–	(18,081)
Step Forward Tees
Valley (BBO)	–	2,481	–	(2,481)	–
Barclays Referral
Service	(565)	2,250	(2,224)	539	–
Warm Up North	(3,555)	58,934	(49,937)	–	5,442
MFTV	–	–	(3,337)	–	(3,337)
National Lottery Schools	–	38,109	(40,335)	–	(2,226)
Northern Powergrid	–	33,000	(37,842)	–	(4,842)
BPA - Access to Justice	–	42,143	(27,540)	–	14,603
	────────	─────────	─────────	───────	─────────
	61,712	534,971	(492,348)	(1,942)	102,393
	════════	═════════	═════════	═══════	═════════

20

Middlesbrough Citizens Advice Bureau

Notes to the Financial Statements (continued)

Year Ended 31 March 2025

22. Analysis of Charitable Funds (continued)

Money Advice Service Debt Advice Project (MASDAP) monies are used to deliver a specialist debt casework service.

The Advocacy Service is funded by Middlesbrough Council, Stockton Borough Council and Redcar and Cleveland Borough Council. The monies are used to deliver a service providing support to people wishing to access or better understand the health and social care services they receive, or need support because of lack of capacity,

Middlesbrough Council monies are used to provide our generalist service. It is also used to deliver, with partners, benefits advice in community settings

Macmillan Cancer Support funding comes from Middlesbrough Council, Redcar and Cleveland Borough Council and South Tees Clinical Commissioning Group and the monies are used to deliver a service providing benefits advice to people with cancer.

Mental Health Advice is a service providing welfare benefits advice to people with mental health problems.

Step Forward Tees Valley - BBQ is a debt and financial capability service for people facing significant barriers to joining the labour market.

The Warmer Homes service provides income maximisation and energy advice to people at risk of fuel poverty.

North Ormesby Money Matters provides financial capability services in North Ormesby through funding provided by North Ormesby Big Local.

Benefits for Migrants is a service funded for part of the year by the Access lo Justice fund and the remainder by the People's Postcode Lottery. It provides advice and support to people abroad who need to claim benefits or challenge a decision about their benefits entitlement.

Energy Redress Scheme - The Energy Redress Fund scheme provides energy advice and income maximisation services to people in or at risk of fuel poverty.

LSLiP - The Legal Support for Litigants in Person provides advice to people with welfare benefits or employment issues who are involved in litigation eg appealing to a First Tier Benefits Tribunal or to an Employment Tribunal.

Warm Up North is an energy advice service delivered in partnership with Stockton, Newcastle and South Tyneside CABx. The project aims to help local people mitigate the effects of fuel poverty through a range of measures, including advice about tariffs, grants available, reducing energy usage, and income maximisation.

Community Justice Fund was short term funding, provided through the Access to Justice Foundation, to enable legal advice organisations to maintain their services in the face of the cost of living crisis. Middlesbrough CAB used the money to support the salaries of key supervisors within its generalist service.

Barclays Referral Scheme was a pilot scheme which involved locating an adviser in the local branch of Barclay's Bank. The pilot was funded by Barclays Bank.

National Lottery Schools is a service providing benefits advice to parents of school children, funded by the National Lottery and delivered as a partnership with three other CAB in the region.

The designated fund has been set aside to ensure that the charity will have funds available

21

Middlesbrough Citizens Advice Bureau

Notes to the Financial Statements (continued)

Year Ended 31 March 2025

22. Analysis of Charitable Funds (continued)

should any unforeseen, major repairs be required to the building and any costs relating to future redundancies, should these be required.

CATCH is a project providing benefits advice to people with mental health issues which puts them in danger of self harm.

LEAP is a project which provides benefits advice and other financial inclusion support to people seeking to enter the labour market.

23. Analysis of Net Assets Between Funds

	Unrestricted	Restricted	Total Funds
	Funds	Funds	2025
	£	£	£
Tangible fixed assets	57,296	–	57,296
Current assets	227,189	157,981	385,170
Creditors less than 1 year	(160,572)	–	(160,572)
Provisions	(5,734)	–	(5,734)
	─────────	─────────	─────────
Net assets	118,179	157,981	276,160
	═════════	═════════	═════════
	Unrestricted	Restricted	Total Funds
	Funds	Funds	2024
	£	£	£
Tangible fixed assets	74,203	–	74,203
Current assets	255,672	102,393	358,065
Creditors less than 1 year	(26,700)	–	(26,700)
Provisions	(2,008)	–	(2,008)
	─────────	─────────	─────────
Net assets	301,167	102,393	403,560
	═════════	═════════	═════════

24. Analysis of Changes in Net Debt

					At
	At	1	Apr 2024	Cash flows	31 Mar 2025
			£	£	£
Cash at bank and in hand			277,193	18,510	295,703
			═════════	════════	═════════

25. Operating Lease Commitments

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

			2025	2024
			£	£
Not later than	1	year	–	323
			════	════

26. Related Parties

There were no transactions with related parties during the current or previous year.

22

Middlesbrough Citizens Advice Bureau

Management Information

Year Ended 31 March 2025

The Following Pages Do Not Form Part of the Financial Statements.

23

Middlesbrough Citizens Advice Bureau

Detailed Statement of Financial Activities

Year Ended 31 March 2025

	2025	2024
	£	£
Income and endowments
Donations and legacies
Donations and gifts	1,361	–
	───────	────
Charitable activities
Middlesbrough Council - Core funding	88,000	88,000
Advocacy Service	10,472	204,116
MASDAP	160,655	156,428
Middlesbrough Council - Hubs	142,500	142,500
CATCH	39,817	–
Macmillan Cancer Support	30,000	30,000
BPA - Access to Justice	58,189	42,143
Mental Health	28,000	28,000
Step Forward Tees Valley - BBO	–	2,481
MFTV	19,876	–
Warm Up North	(3,017)	58,934
Northern Powergrid	26,293	33,000
Barclays	–	2,250
LEAP	16,986	–
National Lottery Schools	39,633	38,109
Other income from charitable activities	4,210	19,539
	─────────	─────────
	661,614	845,500
	─────────	─────────
Investment income
Bank interest receivable	1,886	1,881
	───────	───────
Other income
Employment Allowance	10,000	–
	────────	────
	─────────	─────────
Total income	674,861	847,381
	═════════	═════════

24

Middlesbrough Citizens Advice Bureau

Detailed Statement of Financial Activities (continued)

Year Ended 31 March 2025

	2025	2024
	£	£
Expenditure
Expenditure on charitable activities
Activities undertaken directly
Wages	416,685	481,001
Employer's NIC	34,519	40,692
Pension costs	12,800	14,631
Redundancy costs	13,807	–
Premises costs	418	15,882
Office costs	4,249	12,600
Staff and volunteer costs	12,418	22,554
Payments to partners and other costs	83,555	74,542
	─────────	─────────
	578,451	661,902
	─────────	─────────
Support costs
Wages	93,014	120,423
Premises costs	40,056	28,763
Office costs	36,741	37,987
Depreciation	16,907	16,907
Staff and volunteer costs	4,671	1,668
Payments to partners and other costs	4,450	6,415
Irrecoverable VAT	17,785	–
	─────────	─────────
	213,624	212,163
	─────────	─────────
Governance costs
Accountancy fees	1,500	1,400
Pension scheme costs	8,686	5,752
	────────	───────
	10,186	7,152
	────────	───────
	─────────	─────────
Total expenditure	802,261	881,217
	═════════	═════════
	─────────	─────────
Net expenditure	(127,400)	(33,836)
	═════════	═════════

25