Document C 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 2022 C.A.B. Cornwall known as Citizens Advice Cornwall Contents Reference and Adminislralive Details 1 to2 Trustees, Report 3to16 Statement of Trustees, Responsibilities 17 Independent Auditor's Report 18to21 Statement of Financial Activities 22to23 Balance Sheet 24 Statement of Cash Flows 25 Notes to the Financial Statements 26to45 C.A.B. Cornwall known as Citizens Advice Cornwall Referen￿ and Administrative Details Chair F A Keene, Chair Chief Executive Officer G F Pipkin Trustees F A Keene, Chair N R Arnold J S Baker M R Dean {resigned 5 February 20221 S Finlay S Hobbs lappoinled 6 December 20211 H Meacock, Treasurer J Paget lappointed 6 December 20211 J M Williams (resigned 3 February 2022) 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 Reference and Administrative Details Company Registration Number 04409017 Charity Registration Number 1096193 Sollcltors Earf and Crocker 6 West Street Liskeard PL14 68W Bankors Unity Trust Bank PLC Nine Brindley Place Birmingham B12JB Audltor PKF Francis Clark Stslutory Auditor North Quay House Sullon Hart)our 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 Comwall ICACI annual report for 2021122 on behalf of the Trustee Board. 2021122 has been a year of transition for CAC as we moved into a new mode following the easing of Covid-19 restrictions. Demand for face-lo-face advice increased with advisers reporting that people were presenting with complex issues, often that had built up over the lockdown periods. As other services returned to a new normality such as universal credit, the cessation of the moratorium on evictions and the resumption of debt collection, this also prompted more people lo seek our advice. Our volunteers, many of whom had dedicated heroic amounts of time during lockdown, also eased into a new normality for their daily lives. Towards the latter half of the year a new multivarianl crisis began to rapidly amplify as inflation rose alongside food and energy prices and a delerioralion in mental health for many. This has pushed many more people into highly precarious situations resulting in a rapid increase in demand for our services. We anticipate this trend continuing into 2022123 and beyond, as the energy price cap increases, inflation forecasts remain high for al least the next two years and the impact of the war on Ukraine endures. Our capacity lo respond lo rising demand is severely constrained by the availability of resour￿8. So, we are very pleased lo have attracted many new volunteers this year. But as life has resumed and demands on individuals. time has increased, the number of volunteer hours has inevitably dropped. We outperformed on income generation against budget, being able lo lake advantage of on-going Covid-19 related funding, which in turn has had a healthy impact on our free reserves. We continued to diversify our income streams, although some project funding provided by both local and national government will come to an end earlier than anlicipaled, due lo extreme pressure on their own budgets. Funding will undoubtedly become increasingly competitive in the medium-lemi and we urgently need to bolster our core advice service to respond to rising demand. The Board made a positive decision lo invest in building capacity to raise income by fundraising from individuals and the community. This means engaging with people more clearly about the fact that we are a charity and are reliant on donations. We recognise that it will lake lime lo make this shift and a priority for this coming year is lo engage with stakeholders and National Citizens Advice to develop a clarity of purpose against spiralling levels of demand, identifw'ng where and how our expertise and intervention can have most impact. We have continued lo build alliances and partnerships with other voluntary and statutory agencies in Cornwall. It is our firm belief that as the number of people in crisis intensifies and given the intedinking nature of problems they face, we can only provide the most effective support by collaborating with others. We are investing in developing much stronger relationships with colleagues operating in the health and social care sector, as we know there is a positive link between high quality advice and improving mentsl health. To help lead the organisation through these challenges our Senior Management Team has been strengthened by the addition of a Head of Operations and an HR Manager. We also welcomed two new Trustees who bring expertise in the health system and digital and brand marketing. Pag8 3 C.A.B. Cornwall known as Citizens Advice Cornwall Trustees, Report Trustees are deeply appreciative of the ongoing commitment, talent, energy and passion that all our staff and volunteers bring every single day. The personal and emotional toll of the work we do can be huge and we are making significant investments in wellbeing support, alongside a review of rewards. We are also grateful to all our funders and supporters for enabling us lo continue lo help people find a way forward with the problems they face. Fran Keene Chair Pag8 4 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 auditor's report of the charitable company for the year ended 31 March 2022. The financial statements comply wth the Charities Act 2011 (England and Wales), the Companies Act 2006, the Articles of Association, and Accounting and Reporting by Charities.. Statement of Recommended Practi￿ applicable to charities preparing their accounts in accordan￿ with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 Isecond edition 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 and Mission 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 impact on people's lives, by becoming a voice for our clients and consumers on the issues that matter most to them, to tackle injustice, and reduce povety and social exclLJsion', 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 parbcular, 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 5 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 84 staff and 67 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 Communication 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, face lo face, webchal, email, video appointment and lexl al eight offices and 15 digital help hubs across Cornwall. Some of our staff and volunteers continue lo wort( in a hybrid way from home and our offices. 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 Confiden￿ in money mallers through Help to Claim, Money Advi￿ Service, Pension Wise and energy and money management 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 lo slay in the UK, through our Money Matters, Money Wise-upl Powerhouse and the Macmillan and EU Settled Status activities. Services aimed to help people undertake new tenancies or stay in their homes. As the housing crisis has escalated, this work has become more important, so this year we obtained funding to distribute grants to individuals to cover rent arrears, thereby helping people maintain tenancies. Public Benefit The Trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard lo the public benefit guidance published by the Charity Commission for England and Wales. Pag8 6 C.A.B. Cornwall known as Citizens Advice Cornwall Trustees, Report Achievements and Perforniance This year we saw an increase in demand for our services and the complexity of presenting issues as the impact of Covid-19 and the cost of living, housing and energy crises was fell throughout the communities we serve. We continued lo support people mainly through phone, webchal and online appoinlmenls. As Covid-19 reslriclions lifted and people built up confidence in face lo face activity we started lo re-open offices lo the public, initially for appointments and later for limited drop in sessions. These allowed us to support people who had struggled lo use the digital service or whose issues were so complex, they needed to see an adviser face to fa￿. The Trustee Board, committees and working groups continued lo operate primarily via MS Teams but also moved lo in-person sessions where more generative strategic conversations were required. We continued to work effectively with funders to ensure continued delivery of services with target adjustments negolialed where necessary. In 2021122 we helped 9,013 clients with 36,900 issues, an increase in the number of clients on the previous year. Although clients presented on average with less issues, the complexity of individual issues increased, requiring more time lo research and then provide the best targeted advice. The main topics that clients needed support with related to initial claims for Universal Credit, Personal Independence Payments, Debt Relief Orders and council tax arrears. 67 volunteers contributed 14,081 hours of their lime this year across all services and locations. We continued lo explore new ways of working as Covid-19 restrictions eased. Both staff and volunteers were supported to work either mainly al home or mainly in the office or a hybrid mixture. Management were careful to balance the needs of the organisalion and clients with the preferences and needs of our people. We undertook a review of our estsle to ensure il was fil for purpose in a Covid-19 world. As a result, we look the decision lo close our Newquay office as the space did not allow us lo operate in a Covid safe way. A ralionalisalion of Cornwall Council property also meant that our Offi￿ tenancies in PenZan￿ and Sl Auslell were no longer secure. We have obtained new premises in Penzance and are exploring options in Newquay and St Austell, to be secured in the coming year. We will be making a further investment in our Falmouth office in 2022123 to ensure it remains in good condition and fit for purpose. During Quarter 4, we prepared for the end of our Money Matters and Help to Claim projects which have closed. Most of the staff on these projects have transferred to new projects or filled vacancies in existing ones. As a result of the loss of Help lo Claim, we have sel up a new Welfare Benefits team lo support other advisers and undertake the most complex cases including appeals and tribunals. This ensures that we retain some in house specialist services - Universal Credit claimants can continue lo contact Help to Claim teams in other areas. Clients of the Money Matters team are now being supported by the Generalist Adviser team bul we expect our new Building Futures programme lo offer similar services in future. Although there will be a financial impact on the organisation, we hope lo mitigate this with increased efficiencies and attracting new funding into the organisation. Pag8 7 C.A.B. Cornwall known as Citizens Advice Cornwall Trustees, Report Our key achievements this year were.. Achieving income gains for clients worth £8,130,069, rescheduling £157,150 worth of repayments and writing off £1,061,934 of debt - all of which contributed lo improving lives for clients., Providing advi￿ and guidance to 9,013 people in challenging circumstances, many of whom presented with increasingly complex issues,. Answering 17,724 Adviceline calls and undertaking 1,986 webchats (the sixth highest in the country}; Delivering emergency support through a £30,000 Household Support Grant and Tenancy Sustsinmenl Grant., Delivering specialist advice for energy, debt, benefits, housing, domestic abuse and employment., Reaching people in migrant, ethnic and Iraveller communities, who had previously not accessed our services, with energy, immigration and budgeting advice which was well received; Quickly responding to changing guidance on fa￿-tO-fa￿ meetings and consequently opening up services lo provide advi￿ lo clients with the most complex cases., Deepening collaborative working with partners to provide more effective support lo our communities., Maintaining ¢onsistenlly high standards of advice throughout the year., Bringing in an additional £770,324 in funding which Contributed £148,738 in contribution lo overheads in the year., Achieving a surplus of £158,958, mainly as a result of emergency funding including Contain Outbreak Management Funding ICOMFI which has enabled us to bolster reserves and ensure we are more resilient in the coming months. Fundraising Our performance in raising income through Irusls, foundations and grants was strong in 2021122, following the recruitment of the Business Development Officer in the previous year. Following a review of our fundraising strategy, the Board decided lo diversify income generation further by setting a new goal for increasing unreslricled income from individual and community-based fundraising. A Community Fundraiser has been employed as part of the Business Development team lo develop this income stream over the next two years. As this is a new area of activity for CAC which carries significant risk, il is being supported and overseen by the Fundraising Working Group. We received no complaints this year about our fundraising practice. We will continue to ensure that our fundraising privacy and complaints practices ensure the protection of the public, including vulnerable people, from unreasonably intrusive or persislenl fundraising approaches or pressure lo donate. We make sure that our fundraising activity conforms lo The Code of Fundraising Practice published by the Fundraising Regulator and recognised by the Charity Commission. Pag8 8 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 £1,867,773 (2021.. £1,570,541). Total resources expended were £1,725,232 12021= £1,395,436) resulting in a surplus of £158,95812021.. £192,197). This outcome is largely due lo the receipt of Covid-19 emergency funding which allowed some staff to lake on additional responsibilities in the short tem) and combined with tight cost control resulted in more efficient expenditure. As a result of the ending of the Money Mallers and Help lo Claim projects, the financial impact on the organisation will be in the region of £385,500. In response we have moved some staff to other vacant posts within the organisation, some staff have left and we are expanding our Building Futures project through additional funding from Cornwall Council. We continue lo search for other sources of income, both project related and unreslricled lo bridge the funding gap. Res8rves Policy The Board has examined the Charills requirements for reserves in the light of the main financial risks to the organisation. It has established a policy whereby the free reserves {unreslricted funds less the value of fixed assets) held by the Charity should be maintained at a level equivalent to three months, expenditure. Free reserves al the end of the year 2021122 are £419,93612021.. £326,309) which equates lo at least months of organisational expenditure budgeted for 2022123. This has been achieved through out-performing our income generation targets, tight cost control and improved efficiency. This level of reserves is significantly above policy. However, the Board is mindful of a challenging medium term funding horizon, an ambitious fundraising target for 2022123, uncertainty of existing funding streams, increasing demand for our ServI￿S and the need lo invest in our people to further strengthen management and reduce risk. It is anticipated that reserves will need to be drawn on to smooth this volalilily over the next one lo two years. Pag8 9 C.A.B. Cornwall known as Citizens Advice Cornwall Trustees, Report Investment Policy CAC maintains funds in instant access funds lo meet the day lo 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 medium risk investment funds which are reviewed quarterly by the Board and approved in March annually. 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 to access the services and this was followed in 1963 by the Charity Commission for the broader charity m8rkel. The ffitionale for CCLA is to provide the church, local authorities and the charity sector with a soci81 and ethical organisation in which lo invest its surplus 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. In March 2022, CAC'S Board reviewed ils approach to investing, and in the absence of an investment specialist among the Trustees, opted lo simplify the investment portfolio and move deposited funds into a single, mixed, actively managed investment fund. It was agreed lo remain with CCLA using the COIF Charities Ethical Investment Fund. This transfer was completed in May 2022. The 2021122 year ended with a £16,417 Gain on Investments, with £5,515 Dividends received. CAC invested in the following CCLA funds in 2021122.. Fund Fund No. No. of units Fund value at 31.03.2022 Investment Fund 118810001T 3,420 26,794 33,232 £66,597 £71,375 £43,108 £3,116 Global Equity Fund Property Fund Deposit Fund 118810001U 118810001V 118810001C 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 for 2021122 were both yield and growth, with the primary objective being weld. To this end, the portfolio was heavily weighted during 2021122 to the Property Fund, which had a higher yield than the other available funds. Page 10 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. In 2021122 the Charity maintained a strong performance in income generation obtaining Covid-19 response funding alongside a mix of immediate and longer-term income. We continued lo diversify income streams this year which has strengthened our financial resilience. 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. Prlnclpal Rlsk and Uncertalnty The Trustee Board has 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 miligaling actions, on a quarterly basis as part of the fomial review of the Charity's financial and organisalional performance. 11 also wnsiders the effectiveness of the mitigating actions identified for each risk. We continue to review our approach lo risk management lo ensure it is fil for purpose. The Board considers the following lo be the principal risks and Un￿rtaIntieS for CAC and the actions required lo mitigate and manage those risks.. Inability to secure financial stsbility. Our financial strategy is to generate increased revenue by diversifying our income streams with particular focus on developing an effective approach to individual and community fundraising,. reviewing our rented and owned estate,. improving our value for money by finding new ways of meeting our business objectives,. maintaining tight financial control and oversight of financial performan￿., improving our liquidity,. maintaining our free reserves to remain within poliry. 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 detemiine Whe￿ 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 access,. and developing partnerships with other agencies to improve our reach. Page11 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 monitor and respond lo client complaints. We communicate regulady with key stakeholders, including funders, about our impact and achievements. We actively seek out partnership working with other agencies, where this will enable us to better deliver effective services to the communities we serve. Inability to attract and retain people with the skills we need for the future. We 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 update 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 our training offer so that il works in a hybrid way, with some delivered face lo face and some remotely. We employ a third-party IT support contract to provide emergency support. We reviewed our pay and reward policy, including annual leave entitlements lo ensure our offer lo employees remains allraclive. Lack of Capability to lead and manage the organisation. We have increased resilien￿ at senior management level by recruiting a permanent HR Manager and Head of Operations. The development of the workforce strategy identifies the skills we require and helps identify how lo secure them through training, recruitment, pay and reward. We are undertaking a review of our management structure lo ensure risk is adequately controlled and our people are given clear direction and are well supported, with opportunities to develop. Plans for the Future 2022123 will be the third and final year of our Current strategic business plan. This year we will develop a new three year strategic business plan, based on everything we have learned through the delivery of the current plan and which robusuy responds to our ongoing volatile operating environment. The current strategy has four priorities and the 2022123 business plan sets out how these will continue to be delivered. The aim is to enable CAC to respond effectively to demand and build a sustainable organisation able to navigate the cost of living crisis and continue to adapt to the post Covid-19 environment. The four strategic priorities are set out in detail below. Page 12 C.A.B. Cornwall known as Citizens Advice Cornwall Trustees, Report SustainabiTlity and Resilience We aim lo create a stable income and control expenditure whilst providing a quality servi￿. We plan to do this by continuing to focus on ensuring our reserves remain within our policy and maintaining strong control of expenditure and finances. Fundraising lo bring in unreslricled income is identified as an essential requirement with a focus on shifting the extemal perception of Citizens Advice Cornwall so that it is recognised as a local charity requiring donations. The work to build stronger relationships with partners and funders continues. Support is in pla￿ to ensure that the quality of advice remains high and that staff and volunteers are equipped and supported to carry out their role. Through effective and sustainable use of data, Citizens Advice Cornwall continues lo play a key role in contributing lo a wider understanding of the issues facing Cornwall. Access and Reach Our aim is lo reach more people in a lime and manner that fits their need including the communities that we do not currently reach. Setvice delivery will continue lo be primarily digital for most services, with face-lo-face appointments and drop ins available for those who cannot be supported in other ways. Building on our learning so far, we will continue lo explore making the advice and advocacy available in more local areas through our digital outreaches and partner organisations, so that people do not have long and expensive joumeys to get help. We will continue lo explore how we can best meet clients, needs in a¢￿SSing justice, debt prevention, supporting mental health through effective and well-timed advi￿ and better connecting with disengaged communities. People and Culture We aim lo develop a motivated and well-trained team able to take advantage of opportunities. We will work collaboratively to focus on the needs of clients and workforce to create an inclusive environment where everyone is valued. We will develop a workforce strategy that identifies the skills we need lo deliver goals and we will secure those skills through pay, reward, training and development. This will be key lo creating an effective team and ensuring that Citizens Advice Cornwall will be the first choice for people looking to work or volunteer in the sector. We continue lo review our oryanisational values to ensure that they are fil for purpose and relevant and we will continue to embed our equality, diversity and inclusion plans into the organisation. Governance and Compllance We want lo ensure that the organisalion is well led, accountsble, effective, responsive and transparent. We continue lo review our approach to risk management and understanding of risk appetite lo ensure it is fit for purpose and embedded in everyday aclivily. Vve undertook a county wide suNey lo understand how our communities view us, and are working with partner organisations lo build on this intelligence and feed into our strategy and development. We continue lo review the effectiveness of the Trustee Board through a regular annual review and lo develop the quality of information on which decisions on organisalional perfomiance are based. We will recruit additional Trustees lo bring the total lo nine. Page 13 C.A.B. Cornwall known as Citizens Advice Cornwall Trustees, Report 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. LITability The liability of Members of the charitable company is limited. Each Member undertakes to Contribute SLJch amoLJnt as may be required, not ex￿edIng £1, to the Charity's assets if it should be wound up while they are a Member or within one year after they cease to be a Member. Organisational Structure and Decision Making The goveming body is the Board of Trustees, which currently has seven Trustee members. This year two new Trustees were recruited to strengthen the Board by bringing a wder diversity of experien￿, particularly in health, and digital marketing. 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 business. 11 receives reports, including policies, from ils executive officers for information, approval or action. In addition, the Board meets for two slffitegy half days, allowing deeper consideration of the principal issues and risks facing the organisalion and to develop strategic direction. The Board obtains additional assurance and scrutiny through formal Committees. Finance and Audit IFACI and new in 2021122, People and Culture IPCCI. Membership of the former consists of the Treasurer, Chief Executive and Finan￿ Manager and two Trustees. The PCC membership consists of a Trustee with strategic HR expertise if there is such a Trustee on the Board and two additional Trustees, the Chief Executive and HR Manager. The Chair is an ex-officio member of both Committees. Neither committee has decision-making powers., they are focused on providing scrutiny and assurance in relation to the Financial and People elements of the Business Plan respectively, as areas of significant risk lo the achievement of CAC'S charitable objectives. In addition, the Fundraising Working Group conlinLJes to provide close scrutiny and support lo management in developing the new approach to individual and community fundraising. 11 also scrulinises income generation performance, providing additional assurance to the Board. Membership consists of two Trustees, the CEO and the Income Generation and Communications teams. Page 14 C.A.B. Cornwall known as Citizens Advice Cornwall Trustees, Report Key Management Personnel The CEO is responsible for the strategic and operational management of CAC and is aulhorised lo use resour￿8 towards the achievement of the business objectives set out in the Business and Development Plan Ithe Plan). Each year the Board reviews and approves an updated Plan along with the annual budget. The CEO leads a management team comprising.. Head of Operations Finance Manager HR Manager Rlsk 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 procedures are in place lo miligale exposure to the major risks. Citizens Advice Cornwall is a member of Citizens Advice, the National Association of Citizens Advi Bureaux. Citizens Advi￿ 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 Election of Trustees The Board carries out an annual appraisal of its performance each year. This includes a skills audit which identifies any gaps in skills and knowledge to inform training and Trustee recruitment 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 at least 2 Trustees and the CEO shortlisl, interview and make a recommendation lo the Board, subject to all due diligence checks being satisfactory. Trustees are formally elected 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 to observe a fom)al Board meeting, if they would like, before confirming their acceptance of an invitation lo join the Board and prior lo their formal appointment. 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. Page 15 C.A.B. Cornwall known as Citizens Advice Cornwall Trustees, Report Poll¢les Adopted for the Inductlon and Tralnlng of Trustees All Trustees undergo 8 comprehensive induction. This includes meetings with key personnel and the provision of documents that set out the structure, governance, policies, history and operations of CAC and the responsibilities of Trustees. All Trustees are required lo undertake annual training in GDPR, the Senior Management Certification Regime Parts 1 and 2, and safeguarding. This is in addition lo any other training individual Trustees undertake as part of their Continuous Professional Development. Pay policy ft)r senior staff Key management personnel are remunerated by annual salary. There are no additional payments or benefits in kind. The CEO'S salary is sel by the Board and reviewed annually. 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 framewort( 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 its charitable objects and comply with the national membership requirements. Disclosure of information to auditor Each Trustee has taken steps that they ought to have taken as a Trustee in order lo make themselves aware of any relevant audit infomialion and lo estsblish that the Charity's auditor is aware of that information. The Trustees confirm that there is no relevant information 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 13 September 2022 and signed on ils behalf by- F A Keene, Chair Chair and Trustee Page 16 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 13 September 2022 and signed on ils behalf by.. F A Keene, Chair Chair and Trustee Page 17 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 2022, 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 al 31 March 2022 and of its incoming resources and application of resources, including ils income and expenditure, for the year then ended., have been properfy 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 statements, we have concluded that the Trustees, use of the going cOn￿M basis of accounting in the preparation of the financial stslemenls is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charity's ability to continue as a going concern for a period of at least twelve months from when the original finanaal statements were aulhorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. Page 18 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 17}, 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 19 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. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading lo a material misslatemenl in the financial statements. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely lo become aware of instances of non-compliance. The risk of not detecting a material misstatement due lo fraud is higher than the risk of not delecling one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation. A further description of our responsibilities is available on the Financial Reporting Council's website al.. www.frc.org.uklauditorsresponsibilities. This description forms part of our auditor's report. Page 20 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. Duncan Leslie (Senior Statutory Audilorl For and on behalf of PKF Francis Clark, Statutory Auditor North Quay House Sutton Harbour Plymouth Devon PL4 ORA Date.. 1510912022 Page 21 C.A.B. Cornwall known as Citizens Advice Cornwall Statement of Financial Activities for the Year Ended 31 March 2022 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses) Total 2022 Unrestricted Restricted Note Income from.. Donations and legacies Charitable artivities Investment income Other income 4,363 316,051 5,515 7,830 4,363 1,850,065 5,515 7,830 1,534.014 Total income 333,759 1,534,014 1,867,773 Expenditure on: Charitable activities {246,6771 11,478,555) 11,725,232) Total expenditure Gainsllosses on investment assets {246,6771 16,417 11,478,555) 11,725,232) 16,417 Net income 103,499 9,098 55,459 9,098 158,958 Transfers bel￿een funds Net movement in funds 94,401 64,557 158,958 Reconciliation of funds Total funds brought forward 343,465 370,628 714,093 Total funds carried forward 21 437,866 435,185 873,051 The notes on pages 26 to 45 fomi an integral part of these financial statements. Page 22 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) Total 2021 Unrestricted Restricted Note Income from.. Donations and legacies Charitable activities 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 262,891 1,132,545 1,395,436 Total expenditure Gainsllosses on investment assets {262,8911 11,132,545) 11,395,436) 17,092 17,092 Net income Transfers between funds 124,095 30,266 68,102 30,266 192,197 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 21 343,465 370,628 714,093 All 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. The notes on pages 26 to 45 fomi an integral part of these financial statements. Page 23 C.A.B. Cornwall known as Citizens Advice Cornwall (Registration number: 04409017) Balance Sheet as at 31 March 2022 2022 2021 Note Flxed assets Tangible assets Investments 14 15 250,919 184,196 261,926 167,780 435,115 429,706 Current assets Debtors Cash at bank and in hand 16 259,399 617,202 162,941 209,559 876,601 372,500 Credltors: Amounts falllng due wlthln one year 18 1438,6651 188,1131 Net current assets 437,936 284,387 Net assets 873,051 714,093 Funds ofthe Charity: R9Stri¢tgd 435,185 370,628 Unrestricted income funds Unreslricled 437,866 343,465 Total funds 21 873,051 714,093 The financial statements on pages 22 to 45 were approved by the Trustees, and authorised for issue on 13 September 2022 and signed on their behalf by.. F A Keene, Chair Chair and Trustee The notes on pages 26 to 45 fomi an integral part of these financial statements. Page 24 C.A.B. Cornwall known as Citizens Advice Cornwall Statement of Cash Flows for the Year Ended 31 March 2022 2022 2021 Note Cash flows from operating activities Net income 158,958 192,197 Adjustments to cash flows from non