Company registration number.. 04409017 Charity registration number.. 1096193 C.A.B. Cornwall known as Citizens Advi￿ Comwall IA company limited by guarantee) Annual Report and Financial Statements for the Year Ended 31 March 2021 C.A.B. Cornwall known as Citizens Advice Cornwall Contents Trustees, Report 1 to15 Reference and Administrative Details Statement of Trustees, Responsibilities 16 Independent Auditors, Report 17to20 Statement of Financial Activities 21to22 Balance Sheet 23 Statement of Cash Flows 24 Notes to the Financial Statements 25to43 C.A.B. Cornwall known as Citizens Advice Cornwall Trustees, Report Reference and Administrative Details Chair F A Keene, Chair (from 27 April 2020. re-elected 26 April 20211 Chief Executive Officer G F Pipkin Trustees F A Keene, Chair (from 27 April 2020, re-elected 26 April 20211 J S Baker, Chair lunlil 27 April 20201 H Meacock, Treasurer (appointed 8 February 20211 P Charfesworth, Treasurer (resigned 8 February 20211 N R Arnold lappointed 27 April 20201 M J Cooper (resigned 30 June 2020) MRDe8n V Dennis lappoinled 30 July 2020- resigned 2 September 20201 S Finlay lappoinled 8 February 20211 J A Thompson lappoinled 27 April 2020,. resigned 4 December 20201 J M Williams lappoinled 8 February 20211 G F Pipkin Secretary Principal Office Duchy House 21 Dean Street Liskeard Comwall PL14 4AB Registered Office Duchy House 21 Dean Street Liskeard Comwall PL14 4AB The Charity is incorporated in England and Wales. Pag8 1 C.A.B. Cornwall known as Citizens Advice Cornwall Trustees, Report Reference and Administrative Details Company Rggistration Numbgr 04409017 Charity Registration Number 1096193 Solicitors Earf and Crocker 6 West Street Liskeard PL14 6BW Bankers Unity Trust Bank PLC Nine Brindley Place Birmingham B12JB Auditor PKF Francis Clark Statutory Auditor North Quay House Sutton Harbour Plymouth Devon PL4 ORA Pag8 2 C.A.B. Cornwall known as Citizens Advice Cornwall Trustees, Report Chair's Foreword l am pleased to present the Citizens Advice Cornwall annual report for 2020121 on behalf of the Trustee Board. Like for many other charities, 2020121 has been a complex and challenging year because of the ongoing Covid-19 reslriclions and the impact this has had not only on Citizens Advice Cornwall ICACI but on the people we serve across the county. Bul there have been opportunities loo, that will have a positive and lasting effect for our clients and the organisalion. We secured significant new income from a wide range of SoUr￿S that has helped us to better meet the needs of our clients, whether that be about helping them secure settled slalus in the UK, providing extra energy saving advice designed to reduce the likelihood of debt, supporting families as they struggle for financial resilience and support, or exploring new ways of offering advice using technology to better reach people where they are, rather than expecting them lo physically come to us. Tight management and control, a more targeted approach lo fundraising and changes to our delivery model have together resulted in a significant surplus this year, which in turn has helped bring us much closer to operating within our reserves policy, a target we set ourselves at the beginning of the year. This was done while also improving the quality of our advice, expanding access to our services and answering more telephone demand than ever before. Although the numbers of people we have helped this year has dropped slightly, the complexity and severity of the issues they come with has increased. This in tum places enomious pressure on our staff and volunteers that can negatively impact on their wellbeing. To mitigate this, we invested in dedicated senior HR support, mechanisms for regular staff and volunteer virtual gel-togelhers, a deep review of our people and culture performance through staff and volunteer surveys and focus groups, and by recruiting a Trustee with senior stffitegic HR experience. This yearfs staff and volunteer survey results show a significant positive shift across all areas and the focus groups are evolving into an enduring positive, solulion-orienlaled space where workforce issues can be explored and resolved. We continued the work to renew our Trustee Board as existing Trustees came to the end of their terms and our skills audit revealed the gaps we urgently needed to fill. We are pleased lo have successfully recruited a new Treasurer, along with three other Trustees who in addib'on lo HR skills bring community and business development, and senior management experience. Although the environment for 2021122 remains challenging and volatile, the work our Board, volunteers and staff have done together in 2020121 has helped strengthen our foundations to provide a more solid platfomi from which lo pursue our refreshed strategic goals. None of these achievements would be possible without the dedication, persistence, skill and all-oul commitment of our brilliant staff and volunteers. The Trustees are deeply thankful for all that they do for CAC, each other and Cornwall. We also thank our fLJnders and partners for their SLJPPOrt and understanding in this, we hope, uniquely challenging year. Our thanks also go to Trustees who retired this year and in particular to Paul Charlesworth who retired as Treasurer and Trustee in February 2021. Fran Keene Chair Pag8 3 C.A.B. Cornwall known as Citizens Advice Cornwall Trustees, Report The Trustees, who are directors for the purposes of company law, present the annual report together with the financial statements and auditors, report of the charitable company for the year ended 31 March 2021. The financial statements comply wth the Charities Act 2011 (England and Wales), the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (October 20191 marked"SORP" C.A.B Comwall is the name fom)ally registered at Companies House. Operationally it is referred lo as Citizens Advice Comwall ICAC}. Objectives and Activities Our Purpose We are here lo give people the confidence they need to find a way forward, whoever they are, and whatever their problem by.. providing the advice people need for the problems they face., improving the policies and practices that affect people's lives by becoming a voice for our clients and consumers on the issues that matter most to them, lo tackle injustice, and reduce poverty and social exclusion., and promoting any charitable purpose for the public benefit by the advancement of education, the protection and preservation of health and the relief of poverty, sickness and distress in particular, but without limitation, for the benefit of the community of Cornwall and surrounding areas. We value diversity, champion equality, and challenge discrimination, harassment, violence and abuse. We are here for everyone and are dedicated lo being an employer and service provider that is inclusive and welcoming. Pag8 4 C.A.B. Cornwall known as Citizens Advice Cornwall Trustees, Report Our Activities The key objective of our activities remains the provision of free, independent, confidential and impartial advice lo everyone on their rights and responsibilities. This advice should be accessible in a place and by a means that meets the needs of our clients and helps them be beller able lo manage their lives. Our 82 staff and 42 volunteers help people with advice on a range of topics.. Welfare benefits and tax credits Universal Credit Debt and money Employment Housing Relationships and family . Consumer goods and services Health and community care Legal Travel and transport utilities and commLJnication Immigration Discrimination, hate crime, gender Violen￿ and abuse Over the past year we have provided the following services.. Advice through a range of channels including phone, webchat, email, video appointment and text at six of our nine offices across the Duchy and from the homes of staff and volunteers. We have provided very little fa￿-tO-faCe activity due to Covid-19 reslriclions. Research and campaigns identifying the trends and issues impacting the community and providing valuable information lo local and national bodies lo influence change. Specific services that support people lo manage their income, effectively address their debt and build confidence in money matters through our Help to Claim, Money Advi￿ Service, Pension Wise and Energy Vouchers projects. Services that are targeted at specific groups of people such as low-income families, young people leaving care, young people not in education, employment or training, people with cancer and their carers, and people from an EU country applwng to stay in the UK, through our Money Matters, £WiseUp, Macmillan Project. and EU Settled Status aclivilies. Public Benefit The Trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales. Pag8 5 C.A.B. Cornwall known as Citizens Advice Cornwall Trustees, Report Achievements and Perforniance Covid-19 had a significant impact on the delivery of our seNice during 2020121 due to the physical distancing reslriclions imposed through lockdown. We maintsined our services throughout the year following our transition to primarily home working in March 2020. All our offices were closed to the public and we reshaped our services to offer advice mainly via telephone or email, with webchal and mail making up the remainder. Only one per cent of clients used the setvice in person. A skeleton team worked from 6 offices lo provide vital administrative support and continuity. Protocols were pul in pla￿ lo ensure safe working. The Trustee Board continued lo operate via MS Teams including Board Meetings and Strategy Days. We worked effectively with our funders lo ensure continued delivery of services and lo agree adjustments to targets and delivery as required. 42 volLJnteers contributed 14,038 hours of their lime this year across all services and locations, with most operating our services from their homes. We are grateful for the flexible and adaptable approach our volunteers look during this year and the deep commitment they showed to our clients during what was a very challenging and complex time. Their effort and expertise bring enormoLJS benefit to our clients and the organisation. The numbers of clients ac￿Ssing the service has continued lo rise, after an initial dip in demand in April and May, and by year end we had helped 8,606 clients with 40,403 issues. The main topics that clients needed support with were initial claims for Universal Credit, Personal Independent Claims, Debt Relief orders and credit, store and charge card debts. The complexity of issues that people required help with increased, creating additional pressure on the service. Our key achievements for our clients this year were.. Maintaining our service throughout the pandemic so that people were still able to contact us for advice via the telephone, email, webchal and in-person (where Covid-19 restrictions allowed and in a Covid-safe way). We answered 23,579 calls, 6,433 emails and 1,388 webchats. Securing £5,265,762 of income gain, £439,500 of loan rescheduling and £1,761,396 of debt write offs for clients. 88 per cent of clients reported the advice they received having had a positive impact on their lives, 80 per cent reported that their problem had been solved lo a great or very great exlenl and 90 per cent would recommend our service to a friend. Improving the quality of advice given, measured through the quality of advice framework of the national charity. Increasing the level of demand answered on Adviceline so that more people than ever were able lo receive advice through this channel. Obtaining funding to deliver debt and benefit advi￿ to people with poor mental health in partnership with a local mental health charity, Penlreath. Providing dedicated support to EU and Swiss citizens lo gain settled slalus within the UK. Delivering additional energy advice, including a short film made with local actor Ed Rowe, also known as the Kernow King, promoting lop lips for saving energy around the home. This was viewed over 2,000 times on our YouTube channel and over 20,000 limes via social media. Pag8 6 C.A.B. Cornwall known as Citizens Advice Cornwall Trustees, Report Providing a new project to support young people not in education, employment and training, and those leaving care, in financial capability and energy advice. Delivering dedicated advice services for people with disabilities in partnership with DisAbilily Cornwall. Carrying out additional training and increasing our capacity lo support clients with housing and employment issues via detailed casework. Piloting using digitsl access points across Cornwall to support face-lo-face consultations without clients needing lo come into one of our offices. The organisalion slrenglhened ils approach lo financial resilience through widening the number of income sources., successfully generating additional income mainly through grant funding, enabling us to expand our access and reach,. and reviewing and lightening our financial controls and reporting systems. Additional income enabled us lo invest in IT and phone equipment, including server upgrades and additional laptops. We focused attention on the wellbeing of our people, employing a dedicated HR manager lo support the delivery of our people and culture strategic priority. We are pleased that our annual staff survey results showed a significant positive shift in all areas. Our staff and volunteers showed extraordinary support lo each other during this first year of the pandemic, an important part of ensuring our achievements for clients were delivered in a sustainable way. We were also able lo strengthen our governance this year through the recruitment of four new Trustees, including a new Treasurer. They brought with them a wide range of vital skills and experien￿, providing additional support and insight that will enable the Board lo continue to increase its effectiveness. Fundraising CAC has Carried out very few fundraising activities and does not use professional fundraisers lo generate income on our behalf. We received no complaints this year about our fundraising practi￿. We developed a new fundraising strategy this year, employing a 8LJsiness Development Officer lo assist in OLJr income generation development as part of OLJr financial strategy. We will continue lo ensure that our fundraising privacy and complaints practices ensure the protection of the public, including vulnerable people, from unreasonably intrusive or persistent fundraising approaches or pressure to donate. We make sure that our fundraising activity conforms lo The Code of Fundraising Practi￿ published by the Fundraising Regulator and recognised by the Charity Commission. Pag8 7 C.A.B. Cornwall known as Citizens Advice Cornwall Trustees, Report Financial Review Financial Results During this year our income from grants, projects and other funding lotslled £1,570,541 (2020.. £982,059) and gains on investment assets lotslled £17,092 12020.. loss of £2,440). Total resources expended were £1,395,436 12020.. £1,073,025) resulting in a surplus of £192,197 12020.. deficit of £93,406). The prior year deficit arose because income anticipated did not materialise in the year. In the current year, a number of significant new contracts were awarded and costs were reduced through the shift lo home working, both of which contributed to the surplus. After a number years with a deficit financial outturn resulting in a significant decline in the level of free reserves, the Board sel a fim tsrget al the beginning of the year lo move significantly towards rectifying this, without compromising on quality or level of service lo our clients. We have achieved this largel through improving our approach lo achieving grant funding, diversifying our income streams, the reduction in costs due lo our Covid-19 response, and lightening our financial controls and reporting systems. The Charity has benefited from additional funding made available during the pandemic and the opportunity lo work in partnership with other organisalions lo achieve funding bids. Following a deficit on reslricled funds under the Help to Claim and Macmillan contracts in 2019120, some additional funds were recovered in 2020121 and the remaining deficit was cleared by a transfer from unrestricted funds. Reserves Policy The Board has examined the Charity s requirements for reserves in the light of the main financial risks to the organisation. It has established a policy whereby the free reserves {unreslricled funds less the value of fixed assets) held by the Charity should be maintained at a level equivalent to three months, expenditure. Free reserves at the end of the year 2020121 are £326,309 12020.. £234,134) which equates lo 2.7 months of organisational expenditure budgeted for 2021122. Although this is an improvement on the previous year, il is still below the level ststed in the policy. driven by the increase in forecast expenditure for 2021122. Therefore, continued measures are being taken lo raise this up to 3 months through our fundraising strategy, ongoing tight cost control and increased efficiency. Pag8 8 C.A.B. Cornwall known as Citizens Advice Cornwall Trustees, Report Investment Policy CAC maintains funds in instant ac￿SS funds to meet the day-to-day needs for working capital. Any funds beyond this, and not required for the development of the business in the short term, are invested in low risk investment funds. which are reviewed quarterly by the Board and approved annually. On 25 February 2021, the Board acted to re-balance the investment portfolio due lo the vulnerability of the Property Fund. 33,231.76 Property Fund units were sold and split them equally between the Investment Fund & Global Equity Fund al 16,615.88 units each. While it is loo soon lo judge the impact of Covid-19 on our investments, the Board is monitoring this situation. The Charity's funds are held by Churches. Charities and Local Authorities ICCLAI Fund Manager which was formed in 1958 to manage the Church of England pool of funds. In 1961, it expanded lo allow Local Authorities lo access the services and this was followed in 1963 by the Charity Commission for the broader charity market. The rationale for CCLA is lo provide the church, local authorities and the charity sector with a social and ethical organisation in which lo invest ils surplus funds. The following funds are available lo charities.. Fund Type Yield No. of units held Investment Fund Units Income UK & Overseas Equities & Cash 2.92'/0 3,419.90 Fixed Interest Gilts & Non-Government Bonds None Deposit Fund Property Fund Units Cash 0.00770/0 3,114.67 Income Commercial & Retail Property 4.53'/0 33,231.74 Global Equity- Income Units Overseas Equities Charities Ethical Investment Income Units 2.750/. 26,794.32 UK & Overseas Equities & Cash 3.04°/0 None When the Trustees decided lo invest surplus cash with CCLA, the prime considerations for the portfolio were diversification, growth and weld. The objectives set by the Trustees are both weld and growth, with the primary objective being yield. To this end, the portfolio is heavily weighted lo the Property Fund, which has a higher weld than the other available funds. The decision lo use CCLA as the Charity's Fund Manager was based on past Performance and the ethical approach sel by the Board of CCLA. Pag8 9 C.A.B. Cornwall known as Citizens Advice Cornwall Trustees, Report Going Concem After reviewing the organisalion's budgets and business plan and taking account of the economic climate, reserves position and strategic priorities for the next three years, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. The Charity was able to access emergency funding and also some longer term income streams during 2020121 and all existing funding was retained as services continued to be delivered throLJghoul the lockdown period. Expenditure continued lo be at a lower level, in particular travel and costs for meeting venues. Whilst the full extent of the s8vings is unlikely to be retained, il is anticipated that overall costs will remain lower in future as more staff and volunteers use digitsl means for the majority of meetings. For this reason, the Trustees continue to adopt the going concern basis in preparing the financial slatemenls. Further details regarding the adoption of the going concem basis can be found in the Accounting Policies. Principal Risk and Uncertainty The Trustee Board had ultimate responsibility for risk management and ensuring the Charity has effective internal controls that operate as designed. CAC has a business and budget planning process, which includes making an assessment of the key risks posed by our operating environment. The Board approves the annual business plan, budget and key risks each year. The Board assesses the principal risks facing CAC, and the mitigating actions, on a quarterly basis as part of the formal review of the Charity s financial and organisalional performance. 11 also considers the effectiveness of the mitigating actions identified for each risk. We renewed our approach to risk management and undertook a fundamental review of our strategic risks at the beginning of 2021122. The Board considers the following to be the principal risks and uncertainties for CAC and the actions required to mitigate and manage those risks.. Inability to secure a financial sustainability- Our financial strategy is to generate increased revenue by diversifwng our income streams., reviewing our rented and owned estate,. increasing unrestricted income through fundffiising., improving our value for money by finding new ways of meeting our business objectives; maintsining tight financial control and oversight of financial perfomiance,. improving our liquidity., and continuing lo re-build our free reserves. Inability to meet demand and reach people who need our service. We regulady analyse customer satisfaction and channel usage across key groups of clients and potential clients lo delemiine where we need lo improve. We are focusing on beller meeting demand for support by telephone., developing projects that meet the specific needs of particular groups who are under-represented in our client profile., exploring more innovative use of digital technologies lo improve rural and community access., and developing partnerships with other agencies lo improve our reach. Page 10 C.A.B. Cornwall known as Citizens Advice Cornwall Trustees, Report Damage to the reputation of our brand and service. This could arise from breaches of confidentiality, loss of sensitive data, inaccurate or inappropriate use of data, provision of poor-quality advice, poor client experience, or ineffective stakeholder relations. We train all our staff and volunteers on confidentiality, information risk and GDPR, and safeguarding. We have Cyber Essentials Certification and work with Devon and Cornwall Police to raise awareness of online security. We constantly review the quality of our advice. We monitor and respond lo client complaints. We communicate regularly with key stakeholders about our impact and achievements, including funders. We actively seek out partnership working with other agencies, where this will enable us lo better deliver effective ServI￿S to the communities we serve. Inability to attract and retain people with the skills we need for the future. Vve aim to be an employer of choice offering a positive and inclusive working environment, good pay, quality training and support, and attractive development opportunities. We monitor staff and volunteer satisfaction through annual surveys and deliver our workforce development plan accordingly. We monitor staff and volunteer wellbeing offering access lo psychological support. We actively recruit new volunteers and have revised OLJr training offer so that it works in a low face-to-face environment. We employ a third-paty IT support contract lo provide emergency support. Lack of capablllty to lead and manage the organlsatlon. We aim to increase resilien￿ at senior management level by recruiting a permanent HR Manager and Operations Manager lo strengthen the senior management team. In 2020121, we refreshed OLJr approach to appraisals, objective selling and regular individual performance reviews to support greater alignment with our strategic priorities. The development of our workforce strategy identifies the skills we require and how we will secure them through training, recruitment, pay and reward. Regular reviews of our organisational structure ensLJre we remain agile in response to changing requirements. Plans for the Future In April 2021, Citizens Advi￿ Cornwall refreshed its four strategic priorities for future work to enable it to meet demand and build a sustainable organisalion able to adapt lo the post Covid-19 environment. The four strategic priorities are.. 1. Sustainability and Resilience 2. Access and Reach 3. People and Culture 4. G0Veman￿ and Compliance Sustalnablllty and Reslllence We aim lo create a stable income and control expenditure whilst providing a quality service. Vve plan to do this by continuing to focus on bringing our free reserves back in line with the policy whilst maintaining control of expenditure and finan￿$,. fundraising to bring in unreslricled income and continue lo build stronger relationships with partners and funders,. working to shift pe￿ptIOn so that Citizens Advice Cornwall is recognised as a charity requiring donations and not as purely a publically funded organisation., maintaining our quality of advice and ensuring that staff and volunteers are equipped and supported to carry out their role- and contributing lo a wider understsnding of the issues facing Cornwall through effective and sustainable use of our data. Page11 C.A.B. Cornwall known as Citizens Advice Cornwall Trustees, Report Access and Reach Our aim is lo reach more people in a lime and manner that fils their need including communities that we do not currently reach. servi￿ delivery will continue lo be primarily digital for most Servi￿8, with face-lo-face appointments reserved for those with the most complex issues and circumstances. Building on our learning so far, we will continue to explore making our advice and advocacy available in more local areas through our digital outreaches, so that people do not have long and expensive journeys to access the service. We wll work lo increase our capacity to meet demand on AdvI￿lIne- and we will continue lo explore how we can meet clients, needs in accessing justice, debt prevention, supporting mental health through effective and well timed advice and better connecting with young people. People and Culture We aim lo develop a molivaled and well trained team able to lake advantage of opportunities. We will work collaboratively lo focus on the needs of our clients and workforce lo create an inclusive environment where everyone is valued. We will develop a workforce strategy that identifies the skills we need to deliver goals and we will secure those skills through pay, reward, training and development. This will be key to creating an effective team and ensuring that Citizens Advice Cornwall will be the first choice for people looking lo work or volunteer in the sector. We are undertaking a review of organisalional values lo ensure they are fit for purpose and relevant and we will develop our first equality, diversity and inclusion action plan for both our people and clients. Governance and CompliTance We want lo ensure the organisalion is well led, accountable, effective, responsive and transparent. We are reviewing our approach to risk management and understanding of risk appetite lo ensure it is fit for purpose and embedded in everyday activity. We are setting up a county-wide survey lo understand how our communities view us and what they want from us in order to inform our next strategy and future activities. We will review the effectiveness of our Trustee Board through the regular annual review and continue to develop the quality of information upon which decisions and assessment of organisalional performan￿ are based. We will explore how to make our leadership and management teams (including Trustees) more visible. accessible and effective. And we will recruit additional Trustees lo bring the tol81 number lo nine. Structure. Governance and Management Constitution Citizens Advice Comwall is a charitable company limited by guarantee, registered as a charity on 25 March 2002 and incorporated on 4 April 2002. The name was amended on 3 July 2008 by special resolution and certificate of incorporation upon change of name on 21 July 2008. The company was established under a Memorandum and Articles of Association, which were amended on 4 February 2020. Members. Liabillty The liability of Members of the charitable company is limited. Each Member undertakes to contribute such amount as may be required, not exceeding £1, to the Charity's assets if il should be wound up while they are a Member or within one year after they cease to be a Member. Page 12 C.A.B. Cornwall known as Citizens Advice Cornwall Trustees, Report Oryanisational Structure and Decision Making The governing body is the Board of Trustees, which currently has seven Trustee members, increasing from five al the start of the year. This year a number of new Trustees were recruited to strengthen the Board by bringing a wider diversity of experience, particularly in finance, human resources, business development and community needs. Our Trustees are the directors of the company and are responsible for strategic direction, oversight of organisational and financial performance, and management of risk. The Board meets formally four times a year lo consider fiduciary and strategic bLJsiness. It receives reports, including policies, from ils executive officers for information, approval or action. In addition, the Board meets for two stffitegy half days, allowing deeper consideration of the princip81 issues and risks facing the organisalion and development of strategic direction. In order to provide greater scrutiny and Board assurance of the financial performance of the Charity, a Finance Working Group (FWGI was formed consisting of the Chair, the Treasurer, Chief Executive and Finance Manager. This group had no decision-making powers and was focused on providing close support lo management, ensuring the financial strategy of the Board was delivered and that financial reporting provided the right level of information required for appropriate Board assurance of financial performance. The FWG was replaced by a formal Finance and Audit Committee IFACI, chaired by the Treasurer, in April 2021. New terms of referen￿ were approved by the Board and the Committee is now fully operational with three Trustee members, including the Chair of Trustees in an ex-officio role. The FAC meets quarterly, in advan￿ of the corresponding Trustee Board meeting and provides advice and recommendations to Trustees on all finance and audit matters. 11 has no decision-making powers. In addition to financial performance, this year the Board identified two key organisalional risks where it required closer oversight and scrutiny of performance.. human resources and bLJsiness development. Two working groups have been established (People and Culture, and Business Development) each Chaired by a Trustee lo ensure these strategic goals are delivered and lo provide appropriate expertise lo support management. Both groups will operate during 2021122 and have been additionally tasked with making a recommendation to the Board about whether either or both warrant becoming a formal committee, by the end of the year. Key Management Personnel The CEO is responsible for the strategic and operational management of CAC and is aulhorised lo use resources towards the achievement of the business objectives set out in the Business and Development Plan Ilhe Plan). Each year, the Board reviews and approves an updated Plan along with the annual budget. The CEO leads a management team comprising.. Finance Manager HR Manager Business Development Officer Service Delivery Lead MAS and Help lo Claim Projects Lead Page 13 C.A.B. Cornwall known as Citizens Advice Cornwall Trustees, Report Risk Management The Trustees have assessed the major risks lo which the Charity is exposed, in particular those related lo the operations and finances of the Charity. They are satisfied that systems and prO￿dureS are in place lo mitigate exposure to the major risks. Citizens Advice Cornwall is a member of Citizens Advice, the National Association of Citizens Advice Bureaux. Citizens Advice regulates CAC through the requirements of the Local Performance Quality Framework. The Charity is regulated by the Financial Conduct Authority for debt and credit services {FRN= 6175311. Method of Appointment or Electlon of Trustees The Board carries out an annual appraisal of ils performance each year. This includes a skills audit which identifies any gaps in skills and knowledge to inform training and Trustee recruilmenl for the year. Trustees are recruited via open advertisement. A comprehensive candidate pack is prepared for each recruitment round and this includes the role profile. Applicants apply by submitting a CV and covering letter. A recruitment panel of al least 2 Trustees with the CEO in an observer and support role, shortlisl, interview and make a recommendation lo the Board, subject lo all due diligence checks being satisfactory. Trustees are formally eleded by the Members al an AGM, bul can be co-opted or appointed to a casual vacancy by the Trustee Board for the period until the next AGM. Prospective Trustees are invited lo observe a formal Board meeting, if they would like, before confirming their aC￿ptance of an invitation lo join the Board and prior to their formal appointrnenl. As set out in the Articles of Association, the Board elects one of their number as Chair and one as Treasurer. 11 may also elect a Vice-chair. All these appointments are based on nominations made by Trustees. These officers are elected annually and may serve a maximum of six years. Pollcles Adopted for the Inductlon and Tralnlng of Trustees All Trustees undergo a comprehensive induction. This includes meetings with key personnel and the provision of documents that sel out the slruclure, governance, policies, history and operations of CAC and the responsibilities of Trustees. All Trustees are required lo undertake annual training on GDPR and the Senior Management Certification Regime Parts 1 and 2. From 2020121, all Trustees will also be required lo carry out annual training on their safeguarding responsibilities. This is in addition to any other training individual Trustees undertake as part of their Continuous Professional Development. Pay policy for senior staff Key management personnel are remunerated by annual salary. There are no additional payrnenls or benefits in kind. The CEO'S salary is set by the Board and reviewed annLJally. Page 14 C.A.B. Cornwall known as Citizens Advice Cornwall Trustees, Report Related Parties None of our Trustees receive remuneration or other benefit from their work with the Charity. Any related party transactions are disclosed in the notes lo the accounts. The Charity operates within the standards framework for advice and casework defined by Citizens Advice and is regularly monitored against these standards as part of the membership agreement between the two parties. CAC operating policies are independently determined by the CAC Trustee Board in order to fulfil ils charitable objects and comply with the national membership requirements. Disclosure of infomiation to auditor Each Trustee has taken steps that they ought lo have taken as a Trustee in order to make themselves aware of any relevant audit infomalion and lo establish that the Charity's auditor is aware of that information. The Trustees wnfirm that there is no relevant infomialion that they know of and of which they know the auditor is unaware. Small companies provision statement This report has been prepared in accordance with the small companies regime under the Companies Act 2006. The annual report was approved by the Trustees of the Charity on 26 July 2021 and signed on its behalf by.. F A Keene, Chair (from 27 April 2020, re-elected 26 April 20211 Chair and Trustee Page 15 C.A.B. Cornwall known as Citizens Advice Cornwall Statement of Trustees, Responsibilities The Trustees Iwho are also the directors of C.A.B. Cornwall for the purposes of company lawl are responsible for preparing the Trustees, report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. Company law requires the Trustees lo 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 stale of affairs of the charitable company and of ils incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial slatemenls, the Trustees are required lo.. select suitable accounting policies and apply them consislenlly., observe the methods and principles in the Charities SORP., make judgements and eslimales that are reasonable and prudent-, stale whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements., and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregLJlarities. Approved by the Trustees of the Charity on 26 July 2021 and signed on its behalf by.. F A Keene, Chair (from 27 April 2020, re-elected 26 April 20211 Chair and Trustee Page 16 C.A.B. Cornwall known as Citizens Advice Cornwall Independent Auditor's Report to the Members of C.A.B. Cornwall Opinion We have audited the financial statements of C.A.B. Cornwall {Ihe 'Charity'l for the year ended 31 March 2021, which comprise the Stslemenl of Financial Activities, Balance Sheet, Slalement of Cash Flows, and Notes lo the Financial Slatemenls, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Stsndards, comprising Charities SORP - FRS 102 'The Financial Reporting Stsndard applicable in the UK and Republic of Ireland. and applicable law (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the slate of the Charity's affairs as at 31 March 2021 and of ils results for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with Intemalional Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsihililies 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 Charity 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 lo provide a basis for our opinion. Conclusions relating to going concern In auditing the financial slatemenls, we have concluded that the Trustees, use of the going concem 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 lo events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were aulhorised for issue. Our responsibilities and the responsibilities of the Trustees with respect lo going concem are described in the relevant sections of this report. Page 17 C.A.B. Cornwall known as Citizens Advice Cornwall Independent Auditor's Report to the Members of C.A.B. Cornwall Other infomiation The Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial slalements does not cover the other information and, except lo the exlenl olhetwise explicitly slated in our report, we do not express any fomi of assurance conclusion Ihereon. 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 misslatemenl of the other information. If, based on the work we have performed, we conclude that there is a material misslatemenl of this other information, we are required to report that fact. We have nothing to report in this regard. Opinion on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Trustees, Report for the financial year for which the financial statements are prepared is consistent with the financial statements. and the Trustees, Report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees, Report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report lo you if, in our opinion.. adequate awounting records have not been kept, or retums adequate for our audit have not been received from branches not visited by us., or the financial statements are not in agreement with the accounting records and returns., or certain disclosures of Trustees, remuneration specified by law are not made., or we have not received all the information and explanations we require for our audit. Responsibilities of Trustees As explained more fully in the Statement of Trustees, Responsibilities (set out on page 16}, the Trustees are responsible for the preparation of the financial stslements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees delemiine is necessary lo enable the preparation of financial stslemenls that are free from material misstslement, whether due to fraud or error. In preparing the financial stalemenls, the Trustees are responsible for assessing the Charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concem and using the going concern basis of accounting unless the Trustees either intend lo liquidate the Charity or lo cease operations, or have no realistic alternative bul to do so. Page 18 C.A.B. Cornwall known as Citizens Advice Cornwall Independent Auditor's Report to the Members of C.A.B. Cornwall 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 misslatemenl, whether due lo fraud or error, and lo issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when il exists. Misslalements Can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial slatemenls. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, OLJtlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of delecling irregularities, including fraud is detailed below.. We considered those laws and regulations that have a direct impact on the preparation of the financial slalemenls, including, bul not limited lo FRS 102 leffeclive 1 January 20191- (Charities SORPI, the Companies Act 2006 and the Charities Act 2011. In addition, we wnsidered provisions of other laws and regulations that do not have a direct effect on the financial statements bul compliance with which may be fundamental to the charity's ability to operate or lo avoid a material penalty. We evaluated management's in￿ntiveS and opportunities for fraudulent manipulation of the financial statements lincluding the risk of override of ¢onlrolsl and determined that the principal risks related lo fraudulent financial reporting, in particular lo grant funding re￿ived. Audit procedures performed by the engagement team include, but were not limited lo, discussions and inquiries with management of Compliance with laws and regulations, reviewing grant funding agreements, and reviewing board minutes and significant legal costs incurred in the year. We also addressed the risk of management override of internal controls, including lesling of joumals and evaluating whether there was evidence of bias by the Trustees that represented a risk of material misstatement due to fraud. There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial slatemenls, the less likely we would become aware of it. Also, the risk of not detecting a material misstalemenl due lo fraud is higher than the risk of not delecling one resulting from etror, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. 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.uklauditorsresponsibililies. This description forms part of our auditor's report. Page 19 C.A.B. Cornwall known as Citizens Advice Cornwall Independent Auditor's Report to the Members of C.A.B. Cornwall Use of our report This report is made solely lo the charitable company's Trustees, 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 slate lo the Charity's Trustees those mallers we are required lo slate to them in an auditor's report and for no other purpose. To the fullest exlenl permitted by law, we do not accept or assume responsibility lo anyone other than the charitable company and its Trustees as a body, for our audit work, for this report, or for the opinions we have formed. DCELti Duncan Leslie (Senior Statutory Audilorl For and on behalf of PKF Francis Clark, Statutory Auditor North Quay House Sutton Harbour Plymouth Devon PL4 ORA 29107/21 Date.. Page 20 C.A.B. Cornwall known as Citizens Advice Cornwall Statement of Financial Activities for the Year Ended 31 March 2021 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses) Unrestricted funds Restricted funds Total 2021 Note Income from.. Donations and legacies Charitable artivities Investment income Other income 15,325 342,566 4,346 7,657 15,325 1,542,597 4,346 8,273 1,200.031 616 Total income 369,894 1,200,647 1,570,541 Expenditure on: Charitable activities {262,8911 11,132,545) 11,395,436) Total expenditure Gainsllosses on investment assets {262,8911 17,092 11,132,545) 11,395,436) 17,092 Net income 124,095 130,266 68,102 30,266 192,197 Transfers bel￿een funds Net movement in funds 93,829 98,368 192,197 Reconciliation of funds Total funds brought forward 249,636 272,260 521,896 Total funds carried forward 20 343,465 370,628 714,093 Page 21 C.A.B. Cornwall known as Citizens Advice Cornwall Statement of Financial Activities for the Year Ended 31 March 2020 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses) Unrestricted funds Restricted funds Total 2020 Note Income from.. Donations and legacies Charitable activities Investment income Other income 7,194 332,871 10,224 1,144 7,194 963,497 10,224 1,144 630,626 Total income 351,433 630,626 982,059 Expenditure on: Charitable activities 411,650 661,375 1,073,025 Total expenditure Gainsllosses on investment assets {411,6501 2,440 1661,3751 11,073,025) 12,440 Net expenditure 62,657 30,749 93,406 Net movement in funds 162,6571 130,7491 193,4061 Reconciliation of funds Total funds brought forward 312,293 303,009 615,302 Total funds carried forward 20 249,636 272,260 521,896 Al of the Charity's activities derive from continuing operations during the above two periods. The statement of financial activities includes all gains and losses recognised in the year. Page 22 C.A.B. Cornwall known as Citizens Advice Cornwall (Registration number: 04409017) Balance Sheet as at 31 March 2021 2021 2020 Note Flxed assets Tangible assets Investments 14 15 261,926 167,780 241,561 180,688 429,706 422,249 Current assets Debtors Cash at bank and in hand 16 162,941 209,559 85,744 45,411 372,500 131,155 Credltors: Amounts falllng due wlthln one year 188,1131 131,5081 Net current assets 284,387 99,647 Net assets 714,093 521,896 Funds ofthe Charity: R9Stri¢ted funds 370,628 272,260 Unrestricted income funds Unreslricled funds 343,465 249,636 Total funds 20 714,093 521,896 The financial statements on pages 21 to 43 were approved by the Trustees, and authorised for issue on 26 July 2021 and signed on their behalf by.. F A Keene, Chair (from 27 April 2020, re-elected 26 April 20211 Chair and Trustee Page 23 C.A.B. Cornwall known as Citizens Advice Cornwall Statement of Cash Flows for the Year Ended 31 March 2021 2021 2020 Note Cash flows from operating activities Net cash incomellexpendilure} 192,197 193,4061 Adjustments to cash flows from non