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## REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
Charity number 1099506 Company registration number 4741583 (England & Wales)
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## MONEY ADVICE TRUST TRUSTEES’ REPORT
## REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
||**Page**|
|---|---|
|Trustees’ annual report||
|Vision|3|
|Introduction|3|
|Objectives and activities – including public beneft|3|
|Strategic report|4|
|Achievements and performance|4|
|Future plans and working together|7|
|Financial review|9|
|Reserves policy, investment policy|10|
|and going concern||
|Structure, governance and management|12|
|Principal risks|13|
|Related parties|14|
|Fundraising policy|14|
|Remuneration policy|14|
|Reference and administrative details|16|
|Statement of Trustees’ responsibilities|17|
|Independent auditor’s report|19|
|Statement of fnancial activities (incorporating|23|
|an income and expenditure account)||
|Balance sheet|24|
|Statement of cashfows|25|
|Notes to the fnancial statements|26|
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## MONEY ADVICE TRUST
## TRUSTEES’ REPORT
## REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
## Vision
The Money Advice Trust helps people across the UK to tackle their debts and manage their money with confidence.
## Introduction
The Trustees present their report and the audited financial statements for the year ended 31 December 2020.
The financial statements comply with current statutory requirements, the articles of association, and the Statement of Recommended Practice (SORP) – Accounting and Reporting by Charities (second edition) in accordance with FRS 102.
## Objectives and activities
We provide free telephone and web-based debt advice through National Debtline and Business Debtline to support people and small businesses to deal with their debt.
We also train debt advisers in charities across the UK through Wiseradviser, and campaign to improve the UK’s money and debt environment.
These activities support our charitable objectives which are the relief of poverty including, but not limited to, that arising from indebtedness and the advancement of public education in all matters relating to the management of personal finances.
The Board has developed strategic plans to ensure that the Trust provides public benefit and achieves its aims as set out in its governing document. The Board confirms that it has complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission in determining its activities.
The debt advice we provide needs to be right for the client and the quality of that advice is very important to us, so we have continued with quality initiatives as a central theme to ensure standards are high.
Our free training for advisers is available to advisers in England and Wales and we work in partnership with the advice sector in Scotland and Northern Ireland to make our training available to advisers in those countries.
In meeting our objectives, we also work in collaboration with other debt advice charities, both to ensure that we can deliver value for money and to ensure the client journey is optimal.
We also provide a paid for consultancy and training service for the commercial sector, to improve practice for consumers, and to provide an income stream for the charity.
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## MONEY ADVICE TRUST
## TRUSTEES’ REPORT
REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
## Strategic report
## Achievements and performance
The Covid pandemic has thrown up challenges that no one could have imagined at the start of 2020. Throughout the last year we have concentrated on three areas: our services, our people and our voice. This has focused our work on how we can help more people in problem debt, how to support high standards and protect our staff’s health and wellbeing, and how we can secure safe routes out of debt.
The highlights from 2020 are covered below.
As with the rest of the sector, at National Debtline and Business Debtline we saw a drop in demand for our services in 2020 as the combined impact of the unprecedented government support packages and creditor forbearance measures acted to cushion many UK households from the full impact of Covid-19; we are starting to see numbers rise again.
## **1 - National Debtline**
- We consolidated our expansion and delivered a quality, seamless, multi-channel debt advice service to:
- **94,030** telephone clients, and
- **28,630** webchat clients
- We provided information to visitors to the National Debtline website measured by:
- **1,4 million** total visits to the website
- **863,150** unique visits to the website
- We built on the delivery of advice to visitors of the National Debtline website through our Debt Advice Tool, supported by our advice model that ensures our phone and online services are integrated for telephone users.
## **2 - Business Debtline**
- We delivered a quality, multi-channel debt advice service to:
- **26,530** telephone clients, and
- **12,370** webchat clients
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- We provided information to visitors to the Business Debtline website measured by:
- **475,800** total visits to the website
- **358,310** unique visits to the website
- We provided detailed budgeting and energy efficiency advice to self-employed clients having difficulty paying their energy bills via:
- **3,070** telephone appointments
Of particular note is our partnership with Citizens Advice. We answered **58,160** calls from clients who phoned their Advice Line who would not otherwise have been able to access debt advice. We also worked closely with StepChange Debt Charity who direct self-employed clients to our Business Debtline service.
## **3 - Wiseradviser**
- We provided quality, accredited learning to advisers in charities across the UK via:
- **23,860** training places including **23,290** e-learning sessions taken and **570** face-to-face places taken
- **3,370** advisers trained in **923** agencies
We delivered a training curriculum that gives advisers the competence to provide quality debt advice via a range of methods, platforms and devices to ensure that training remained accessible to all.
The new topics we launched courses on during the year included:
- Supporting yourself to support others in times of crisis - virtual course
- Surviving economic abuse - e-learning
- Supporting clients with addictions - e-learning
We delivered webinars on a range of subjects including:
- Advising during the Covid-19 outbreak
- Universal Credit – FAQs
In response to the changes brought about by Covid-19 we also ensured our courses were converted from face-to-face to virtual classrooms for online delivery including:
- Benefit overpayments
- Council tax: liability and enforcement
- Debts in the County Court: putting it into practice
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## **4 – Improving the UK’s money and debt environment**
We aim to influence policy, regulation and practice, using data gathered from our services, to improve the lives of our clients and potential clients. During the year we achieved the following:
- Securing a ban on bailiff visits when the Covid-19 crisis struck, and the issuing of new Ministry of Justice guidance when visits resumed
- Improving the government’s Breathing Space scheme for people in debt, with several key changes secured in advance of its launch in May 2021
- Partnering with the Cabinet Office to lead the development of a new Vulnerability Toolkit for central and local government
- Influencing the FCA’s new vulnerability guidance for financial services firms, with several of our recommended changes incorporated
- Shaping regulatory responses to Covid-19, including through a record 35 consultation responses over the course of the year
- Helping more than 9780 people who were given advice and information by debt advisers across the UK using our self-help packs
We continue to work in collaboration with a range of partners to help more people more effectively through service delivery, influencing and shaping the funding landscape.
Many of our partners are members of our Partnership Board, which last year met twice a year virtually (in ‘normal’ times it meets, once in London and once in one of the devolved administrations).
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## MONEY ADVICE TRUST
## TRUSTEES’ REPORT
## REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
## Future plans and working together
The Covid pandemic has thrown up challenges that no one could have imagined in early 2020, and the long-term implications will shape our plans for a number of years.
Our 2021 plan sets the strategic objectives of helping more people, whilst delivering and supporting high advice standards. We also plan to continue influencing policy and practice, by working to secure safe routes out of debt.
The core objectives, which are detailed below, are underpinned by five supporting objectives. We are mindful of the circumstances the world now faces and we will be regularly monitoring the plan and adapting it to best suit the needs of our clients as circumstances change, whilst at the same time ensuring we protect our staff.
We recruited 46 new advisers in 2020 and we plan to increase our adviser capacity further as conditions allow, making best use of our flexible working capability, to enable us to advise more clients. We will also be redeveloping the National Debtline and Business Debtline websites to facilitate self-service. Part of this work will include introducing a new Business Debtline Customer Relationship Management (CRM) system with client interface, piloting a chatbot and exploring how artificial intelligence (AI) can help maximise its potential.
To support high standards of debt advice we will be investing in coaching and support for our advisers as well as working with the Money and Pensions Service on the debt advice peer assessment scheme to ensure good quality advice is delivered across all channels. Collaboration will continue with the Money and Pensions Service on exploring and developing an advice qualification. We will continue to deliver and develop our training and support to advice charities across the UK through Wiseradviser. This will include technical training to aid the expansion of the sector and delivering training on the Breathing Space scheme.
Keeping debt high on the public policy agenda will be important to assist people who are in and at risk of debt, particularly in the wake of Covid-19. We will work in partnership with government officials, regulators and other debt charities to help shape policy around securing safe routes out of debt, including a focus on small businesses whose finances have been hit hard by the pandemic.
We are also keen to work with partners on the funding model for the sector and to ensure that links with the devolved administrations are strong, so that people across the UK can continue to benefit from our services.
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## 2021 Summary Objectives
## Core objectives
Strategic objective 1 Strategic objective 2 Strategic objective 3 Better meet the demand Deliver and support Influence policy, services for our services quality advice and practice
## Supporting objectives
Strategic objective 4 Strategic objective 5 Strategic objective 6 Collaborate with others Invest in and take care of Research and evidence to develop a better our people the benefits of assisted service self-help Strategic objective 7 Strategic objective 8 Secure a sustainable Ensure business offering in devolved continuity nations
Strategic objective 9 Deliver a strategy to fund our activities ~~a~~
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REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
## MONEY ADVICE TRUST
## TRUSTEES’ REPORT
## Financial review
During 2020 we increased our total income to £14.8m (2019 - £13.4m) as we continued to grow our services, increasing our frontline staff by 27. Commissioning of our services continued to be our largest source of income at £7m (including £1.3m from a Citizens Advice agreement via Money and Pensions Service to deliver debt advice projects – see note 3 from the financial statement).
This increase has also allowed us to continue to improve our resilience against some expected income reductions in 2021. We also received some additional donations from funders to ensure our work was supported throughout the pandemic.
We had seen steady progress with the income stream from the sale of our training and consultancy services to commercial and public sector organisations, particularly around vulnerability, where we suggest improvements in practice for clients. The ongoing Covid-19 outbreak has impacted these sales, and - whilst we have adapted our training and consultancy service, including moving courses online and delivering virtual sessions - the amount of income secured through this stream reduced in 2020. We are looking to start building it up again in 2021, with early promising signs.
As we have reported before, we have seen a continued trend in reduced income from contact centre referrals for debt options, such as individual voluntary arrangements (IVAs) or debt management plans (DMPs) and we have factored in further reductions into future financial forecasts.
Cost increases overall have been kept to 8% (2019 – 5%) and we continue to look for efficiencies and value for money.
The year-end funds of £7,315,493 (2019 - £5,243,433) fall into three categories: general unrestricted funds £6,965,654 (2019 - £4,600,097), restricted funds £206,803 (2019 - £286,917), and designated general funds £143,036 (2019 - £356,419).
The increase in unrestricted funds will be used to offset the predicted reduced income in 2022 and it also conforms to our reserves policy, which is described later.
We are very grateful to longstanding and more recent funders without whose support our work would be impossible. The list of our funders can be found at notes two and three.
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## MONEY ADVICE TRUST
## TRUSTEES’ REPORT
## REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
## Reserves policy, investment policy and going concern
The Board reviews its reserves policy annually, taking into account the organisational strategy, our risk appetite and financial management information.
The key considerations as part of this review include income risk, working capital and mitigation against unplanned adverse events and in the extreme case liabilities in the event of an orderly wind-down.
Whilst the funding environment in which the Trust operates remains challenging, we have built upon the existing positive working relationships with our funders which give us confidence in our forecasts for the following year. We are mindful that the majority of our funding arrangements are for one year, however we are working to extend these to three-years and longer where we can, giving us greater certainty on income. The bids we will be submitting to Money and Pensions Service for 2022 are on a three year basis.
We note that 52% of our income is from one source and we monitor this closely.
The Board has agreed the capital expenditure within the 2021 budget and we are not planning any extraordinary amounts above this. We are also mindful of our liabilities in the extreme event of a wind down and this is taken into account as part of the policy outlined below.
We also note the unprecedented situation that the coronavirus pandemic has brought upon both the UK and the world. Its economic impact alone will probably mean that our services are going to be needed more than ever and we are looking to work with all our funders to achieve a sustainable and growing service.
Taking these factors into account the Board wishes to ensure that an adequate level of readily realisable unrestricted reserves is held to safeguard the continuing work and commitments of the Money Advice Trust.
The reserves policy remains that a minimum of three to six months running costs, currently £4 – 8m should be set aside to cover this.
The Board reports that in 2020 the year-end unrestricted reserves funds carry forward figure was £7m. This falls within the current reserves policy.
The Board and the Audit, Risk and Quality Committee review the investment of reserves in cash deposits and before investing in an organisation we use a risk assessment review to check suitability for investment. The risk assessment utilises ratings from credit reference agencies and aims to achieve a spread of investments to minimise the exposure to any one counterparty.
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## MONEY ADVICE TRUST
## TRUSTEES’ REPORT
REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
We reviewed again the impact of the coronavirus situation and the potential impact on our income streams for 2022 and produced a realistic worst-case scenario budget and cashflow model. Having carefully analysed this we are confident that with appropriate cost control and the level of reserves we currently have; we will be able to continue our services through 2021 and 2022.
Taking the financial performance, reserve position and coronavirus impact analysis, together with the reasonable expectation that we will have adequate resources to continue in operational existence in the future, we confirm that the accounts have been prepared on the basis that the Money Advice Trust is a going concern.
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## MONEY ADVICE TRUST TRUSTEES’ REPORT
## REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
## Structure, governance and management
The Money Advice Trust is a company limited by guarantee, governed by its articles of association dated 27 May 2010. It is a charity registered with the Charity Commission.
The governing body is the Board of Trustees (the Board), who are also the directors of the charity for the purposes of the Companies Act. Trustees are appointed by the Board and our recruitment process follows the Charity Governance Code and is based around open advertising and interviewing. New Trustees undergo an induction briefing, which covers their legal obligations, the Money Advice Trust’s governing documentation, strategy and business plans, financial analysis, risk framework and structure as well as meeting staff. Trustee development is considered as part of the annual review on Board effectiveness and at each of its sub-committees.
Trustees, who are all unpaid, are appointed for a three-year term, with a potential further
three-year term.
The Board sets the values and strategic direction for the Trust, oversees policy and ensures plans are implemented by monitoring performance against agreed objectives. It receives reports from the formally delegated Committees, which are detailed below.
There are three Committees and each Trustee serves on a minimum of one Committee.
The **Audit, Risk and Quality Committee** met three times in 2020. Anna Bennett is chair and its other members are Laurence Burgess, Vineeta Manchanda, Lawrence Slade and Rebecca Wilkie. The Audit, Risk and Quality Committee oversees the effectiveness of the Trust’s risk framework, including internal and external controls, risk management, the independent audit process and compliance systems. It reviews the quality of services delivered by the Trust and oversees the financial reporting process.
The **Finance and Strategy Committee** met three times in 2020. Paul Smee is the chair and its other members are Ade Keasey, Lucy Malenczuk, Adam Sharples and Gail Scott-Spicer. It helps develop and review the effectiveness of the Trust’s overall strategy, including financial and business level strategies that contribute to its charitable objectives.
The **Nominations and Remuneration Committee** (NRC) met once in 2020. Gail ScottSpicer is Chair and its other members are Adam Sharples, Paul Smee and Anna Bennett. It is responsible for identifying and nominating for the approval of the Board, candidates for the office of Trustee, Ambassador and President and when appropriate for organising recruitment for the post of the Chief Executive. It also carries out reviews on matters relating to the remuneration policy and considers development planning for Trustees. It meets at least once a year, and as and when necessary. The NRC (see below) also reviews data on the skill set of the Board when considering any development needs, opportunities, and trustee vacancies.
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## MONEY ADVICE TRUST TRUSTEES’ REPORT
## REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
We are grateful for the work of our **Ambassadors** who help in many ways – we were pleased to add Otto Thoresen and Baroness Coussins of Whitehall Park (previously our President) to their number in 2020; and to our staff who have helped us achieve the objectives we set.
**President** . We were also delighted to welcome Baroness Tyler of Enfield as our new
During 2020 our Trustees (and Ambassadors) devoted time outside of the normal four Board meetings to attend a strategy setting session with the senior leadership team.
The Chief Executive, who is appointed by the Board, and the Senior Leadership Team manage the day-to-day operation of the Trust’s activities under delegated authority.
## **Quality standards**
The Trust achieved its two-year reaccreditation in July 2020 of the Advice Quality Standard – a Quality Framework with a focus on both the governance of the organisation and also on individual advisers providing debt advice. Work is ongoing to ensure we are in a good position for the next accreditation review which is due in June 2022.
## **Risk management**
The Board acknowledges its responsibility in relation to risk management and the need to assess the major strategic, business and operational risks. The Board monitors risk through its risk framework, which establishes a clear understanding of roles and responsibilities and works to embed risk reporting, awareness and management throughout the organisation. The Board considers all types of risk and these are reported via a risk register, heat map and risk commentary and reviewed quarterly. In addition, we produce an annual audit plan which sets out a programme of audits to be conducted using internal resource and also independent internal auditors. This audit plan focuses on key governance areas in order to ensure best practice and robustness and appropriateness of approach. The Audit, Risk and Quality Committee and the Board approve this audit plan and review all internal audit reports and monitor progress against recommendations. Audits conducted in this period were conducted by Mazars and include Financial Forecasting and Monitoring and a Lessons Learned exercise on our Business Continuity approach to Covid19. The Audit Risk and Quality Committee reviews an Annual Risk Management Report which sets out key risks over the next 12 months, details planned audits and reports on any failure in established controls.
As part of our planning we identified that our key risks are loss of funding; the challenges in scaling up resources to meet client demand; wellbeing of staff and our inability to plan long-term. For each of these we review the impact and likelihood and set a target risk score with planned controls for mitigation for each. We work closely with our funders on our plans and gaining their buy-in and continued support. We have prioritised ‘Protecting Our People’ during Covid -19 and will continue to develop and assess our approach in this area.
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## MONEY ADVICE TRUST
## TRUSTEES’ REPORT
## REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
## **Related parties and relationships with other organisations**
There were no related party and relationship matters for reporting that would give rise to any conflicts of interest. This includes our working relationships with both Citizens Advice and StepChange Debt Charity, details of which are covered under the achievements section improving the UK’s money and debt environment.
## **Fundraising policy**
The Trust does not engage in fundraising from members of the public and does not use external professional fundraisers. The Trust nevertheless observes and complies with the relevant fundraising regulations and codes, is a member of the Fundraising Regulator and supports the principle of high standards in fundraising. During the year there was no non-compliance of these regulations and codes and the Trust received no complaints relating to its fundraising practice.
The Board has also agreed a set of fundraising principles which govern what we will and won’t do in relation to donations made to the Trust and what funders can and cannot do. These are available on our website.
## **Remuneration principles**
The Money Advice Trust (Trust) Board has overall accountability for the remuneration of staff who work for it.
The Trust’s purpose, values and achievements - as well as its income, activities and market conditions - influence how its remuneration principles are developed and put into practice.
Equity, Diversity and Inclusion are important to the Trust. We aim to be an inclusive and equitable employer, and we will be publishing our gender pay gap data by April 2022. The wellbeing of our staff is a key priority and during 2020 we held organisation wide staff sessions and made regular announcements on key topics. We conducted staff surveys on how we work and used the feedback to inform our thinking and policies.
The Board delegates to its Nominations and Remuneration Committee (NRC) specific duties in relation to nomination, remuneration, succession planning and recruitment. The NRC’s terms of reference are agreed by the Board.
Trustees are responsible for setting remuneration levels for the Trust’s Chief Executive and the NRC for approving them for other members of the senior team. Each year all staff participate in an appraisal of their performance. In the case of the Chief Executive, this is undertaken by the Chair of the Board. We do not apply any performance related pay or bonuses.
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## MONEY ADVICE TRUST
## TRUSTEES’ REPORT
## REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
We publish the number of staff who are paid over £60,000 within our annual report and accounts. We also publish the Chief Executive’s salary and total amount of staff benefits for the Key Management Personnel.
The Trust is committed to ensuring the principles are open and transparent and in accordance with Statement of Recommended Practice (SORP). The Trust’s principles that underpin its remuneration policy are:
1. That we offer fair pay, to attract and keep appropriately qualified staff to lead, manage, support and deliver the Trust’s aims.
2. That we are a Living Wage Employer.
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## MONEY ADVICE TRUST
## REFERENCE AND ADMINISTRATIVE DETAILS
REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
**President** Baroness Tyler of Enfield (from November 2020)
## **Directors and Trustees**
The Directors of the charitable company are its Trustees for the purpose of charity law.
Adam Sharples CB Chair Gail Scott-Spicer Vice-Chair (resigned 17 June 2021) Anna Bennett Laurence Burgess Ade Keasey Lucy Malenczuk Vineeta Manchanda Lawrence Slade Paul Smee Rebecca Wilkie Appointed Vice-Chair 17 June 2021 **Chief Executive** Joanna Elson OBE CDir **Ambassadors** Rt Hon Sir Ian McCartney, Sir Brian Pomeroy CBE, Carol Sergeant CBE, Sir Sherard Cowper-Coles KCMG LVO, Simon Walker CBE, Baroness Coussins of Whitehall Park (became an Ambassador during 2020, having been President) and Otto Thoresen (joined during 2020).
## **Constitution**
The Money Advice Trust is a company limited by guarantee (number 4741583) with no share capital and a registered charity (number 1099506) governed by its articles of association. National Debtline, Business Debtline, Wiseradviser, and CASHflow are part of the Money Advice Trust.
**Registered office** 21 Garlick Hill, London, EC4V 2AU **Company Secretary** Ian Witcombe **Country of registration** England and Wales **Country of incorporation** United Kingdom **Auditor** Sayer Vincent LLP Invicta House 108-114 Golden Lane London EC1Y 0TL **Solicitors** Russell-Cooke LLP, 2 Putney Hill, London, SW15 6AB **Bankers** National Westminster Bank plc, PO Box 399, CR9 3QB **Websites** www.moneyadvicetrust.org www.businessdebtline.org www.cfs.moneyadvicetrust.org www.nationaldebtline.org www.wiseradviser.org
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## MONEY ADVICE TRUST
## STATEMENT OF TRUSTEES’ RESPONSIBILITIES
REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
The Trustees (who are also directors of Money Advice Trust for the purposes of company law) are responsible for preparing the Trustees’ annual report including the strategic report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:
- Select suitable accounting policies and then apply them consistently
- Observe the methods and principles in the Charities SORP
- Make judgements and estimates that are reasonable and prudent
- State whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the Trustees are aware:
- There is no relevant audit information of which the charitable company’s auditor is unaware
- The Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees on 31 December 2020 was ten (2019: ten). The Trustees are members of the charity but this entitles them only to voting rights. The Trustees have no beneficial interest in the charity.
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## MONEY ADVICE TRUST
## STATEMENT OF TRUSTEES’ RESPONSIBILITIES
REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
Auditor
Sayer Vincent LLP was re-appointed as the charitable company’s auditor during the year and has expressed its willingness to continue in that capacity.
The Trustees’ annual report which includes the strategic report has been approved by the Trustees on 17 June 2021 and signed on their behalf by
Adam Sharples Trustee
Anna Bennett Trustee
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## INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES’ OF THE MONEY ADVICE TRUST
REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
## **Opinion**
We have audited the financial statements of Money Advice Trust (the ‘charitable company’) for the year ended 31 December 2020 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- Give a true and fair view of the state of the charitable company’s affairs as at 31 December 2020 and of its incoming resources and application of resources, including its income and expenditure for the year then ended
- Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice
- Have been prepared in accordance with the requirements of the Companies Act 2006
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on Money Advice Trust’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
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## INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES’ OF THE MONEY ADVICE TRUST
REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
## **Other information**
The other information comprises the information included in the trustees’ annual report, including the strategic report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- The information given in the trustees’ annual report, including the strategic report, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- The trustees’ annual report, including the strategic report, has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report including the strategic report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- Adequate accounting records have not been kept, or returns 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
20
DocuSign Envelope ID: C608050B-A7EA-41E1-B0F4-7149E4DE2FFF
## INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES’ OF THE MONEY ADVICE TRUST
REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
## **Responsibilities of Trustees**
As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.
## **Capability of the audit in detecting irregularities**
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
- We enquired of management, internal audit and the audit, quality and risk committee, which included obtaining and reviewing supporting documentation, concerning the charity’s policies and procedures relating to:
- Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud;
- The internal controls established to mitigate risks related to fraud or noncompliance with laws and regulations.
- We inspected the minutes of meetings of those charged with governance.
21
DocuSign Envelope ID: C608050B-A7EA-41E1-B0F4-7149E4DE2FFF
## INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES’ OF THE MONEY ADVICE TRUST
REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
- We obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the charity from our professional and sector experience.
- We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit.
- We reviewed any reports made to regulators.
- We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations.
- We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
- In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charitable company’s members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Joanna Pittman (senior statutory auditor)
Date 24 June 2021
for and on behalf of Sayer Vincent LLP, Statutory Auditor
Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL
22
DocuSign Envelope ID: C608050B-A7EA-41E1-B0F4-7149E4DE2FFF
## **Money Advice Trust**
**Statement of financial activities** (incorporating an income and expenditure account)
## **For the year ended 31 December 2020**
|Note
Unrestricted
£
**Income from:**
2
5,389,600
-
3i
451,304
-
3ii
456,513
-
3iii
-
13,762
6,311,179
301,472
-
2,751,878
-
842,718
-
267,913
4
4,163,981
6
2,147,198
4,976
2,152,174
**Reconciliation of funds:**
4,956,516
7,108,690
Investments
**Total income**
**Expenditure on:**
Donations
Charitable activities
Debt Advice
Training
Influencing and Policy
Raising funds
**Total expenditure**
Charitable activities
Total funds brought forward
**Net income/(expenditure) for the year**
**and net movement in funds**
Debt Advice
Training
Influencing and Policy
**Total funds carried forward**
Transfers between funds
**Net income / (expenditure) before other**
**recognised gains and losses**|Note
Unrestricted
£
**Income from:**
2
5,389,600
-
3i
451,304
-
3ii
456,513
-
3iii
-
13,762
6,311,179
301,472
-
2,751,878
-
842,718
-
267,913
4
4,163,981
6
2,147,198
4,976
2,152,174
**Reconciliation of funds:**
4,956,516
7,108,690
Investments
**Total income**
**Expenditure on:**
Donations
Charitable activities
Debt Advice
Training
Influencing and Policy
Raising funds
**Total expenditure**
Charitable activities
Total funds brought forward
**Net income/(expenditure) for the year**
**and net movement in funds**
Debt Advice
Training
Influencing and Policy
**Total funds carried forward**
Transfers between funds
**Net income / (expenditure) before other**
**recognised gains and losses**|Restricted
£
-
7,828,277
686,264
-
-|**2020**
**Total**
**£**
**5,389,600**
**8,279,581**
**1,142,777**
**-**
**13,762**|Unrestricted
£
4,978,832
511,129
666,554
-
20,840|Restricted
£
-
6,770,141
414,051
25,300
-|2019
Total
£
4,978,832
7,281,270
1,080,605
25,300
20,840|
|---|---|---|---|---|---|---|
||6,311,179|8,514,541|**14,825,720**|6,177,355|7,209,492|13,386,847|
||301,472
2,751,878
842,718
267,913|-
7,959,688
629,991
-|**301,472**
**10,711,566**
**1,472,709**
**267,913**|407,165
2,969,235
1,137,299
157,166|-
6,725,393
421,437
25,300|407,165
9,694,628
1,558,736
182,466|
||4,163,981|8,589,679|**12,753,660**|4,670,865|7,172,130|11,842,995|
||2,147,198
4,976|(75,138)
(4,976)|**2,072,060**
**-**|1,506,490
-|37,362
-|1,543,852
-|
||2,152,174
4,956,516|(80,114)
286,917|**2,072,060**
**5,243,433**|1,506,490
3,450,026|37,362
249,555|1,543,852
3,699,581|
||7,108,690|206,803|**7,315,493**|4,956,516|286,917|5,243,433|
All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 16 to the financial statements.
23
DocuSign Envelope ID: C608050B-A7EA-41E1-B0F4-7149E4DE2FFF
## **Money Advice Trust**
## **Balance sheet**
|**Balance sheet**||||||
|---|---|---|---|---|---|
|||||Company no. 4741583|Company no. 4741583|
|**As at 31 December 2020**||||||
||Note||**2020**||2019|
|||**£**|**£**|£|£|
|**Fixed assets:**||||||
|Tangible assets|11||**146,693**||226,286|
||||**146,693**||226,286|
|**Current assets:**||||||
|Debtors|12|**1,515,457**||2,364,273||
|Cash at bank and in hand||**7,027,258**||4,549,891||
|||**8,542,715**||6,914,164||
|**Liabilities:**||||||
|Creditors: amounts falling due within one year|13|**1,373,915**||1,897,017||
|**Net current assets**|||**7,168,800**||5,017,147|
|**Total assets less current liabilities**|||**7,315,493**||5,243,433|
|**Total net assets**|||**7,315,493**||5,243,433|
|**The funds of the charity:**|16|||||
|Restricted income funds|||**206,803**||286,917|
|Unrestricted income funds:||||||
|Designated funds||**143,036**||356,419||
|General funds||**6,965,654**||4,600,097||
|Total unrestricted funds|||**7,108,690**||4,956,516|
|**Total charity funds**|||**7,315,493**||5,243,433|
Approved by the trustees on 17 June 2021 and signed on their behalf by
Adam Sharples Chair of Trustees
24
DocuSign Envelope ID: C608050B-A7EA-41E1-B0F4-7149E4DE2FFF
## **Money Advice Trust Statement of cash flows**
|**For the year ended 31 December 2020**|**For the year ended 31 December 2020**|**For the year ended 31 December 2020**|||
|---|---|---|---|---|
|Depreciation charges
Dividends, interest and rent from investments
Loss on disposal of fixed assets
Decrease/(Increase) in debtors
(Decrease) in creditors
Note
**£**
**£**
**2,516,942**
**13,762**
**(53,337)**
**(39,575)**
**2,477,367**
**4,549,891**
17
**7,027,258**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
**Change in cash and cash equivalents in the year**
**Net cash used by investing activities**
**Net cash provided/(used) by operating activities**
**Cash flows from investing activities:**
Dividends, interest and rents from investments
Purchase of fixed assets
**2020**
**Cash flows from operating activities**
**Reconciliation of net income/(expenditure) to net cash flow from operating activities**
**Net income for the reporting period**
**(as per the statement of financial activities)**
**Net cash provided/(used) by operating activities**|||**2020**
2019
**£**
£
**2,072,060**
1,543,852
**132,930**
135,124
**(13,762)**
(20,840)
**-**
-
**848,816**
(211,707)
**(523,102)**
(3,138,829)
**2,516,942**
(1,692,400)
£
£
(1,692,400)
20,840
(151,945)
(131,105)
(1,823,505)
6,373,396
4,549,891
2019|2019
£
1,543,852
135,124
(20,840)
-
(211,707)
(3,138,829)|
|||||(1,692,400)|
||||||
|||**2,477,367**
**4,549,891**||(1,823,505)
6,373,396|
|||**7,027,258**||4,549,891|
25
DocuSign Envelope ID: C608050B-A7EA-41E1-B0F4-7149E4DE2FFF
## **Money Advice Trust**
## **Notes to the financial statements**
## **For the year ended 31 December 2020**
## **1 Accounting policies**
## **a) Statutory information**
Money Advice Trust is a charitable company limited by guarantee and is incorporated in the United Kingdom. The registered office address is 21 Garlick Hill, London, EC4V 2AU.
## **b) Basis of preparation**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.
## **c) Public benefit entity**
The charitable company meets the definition of a public benefit entity under FRS 102.
## **d) Going concern**
We reviewed again the impact of the coronavirus situation and the potential impact on our income streams for 2022 and produced a worst-case scenario budget and cashflow model. Having carefully analysed this we are confident that with appropriate cost control and the level of reserves we currently have; we will be able to continue our services through 2021 and 2022.
Taking the financial performance, reserve position and coronavirus impact analysis, together with the reasonable expectation that we will have adequate resources to continue in operational existence in the future, we confirm that the accounts have been prepared on the basis that the Money Advice Trust is a going concern.
The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.
## **e) Income**
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.
Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.
## **f) Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
## **g) Fund accounting**
Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.
Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.
Designated funds are unrestricted funds earmarked by the trustees for particular purposes.
## **h) Expenditure and irrecoverable VAT**
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
- Costs of raising funds relate to the costs incurred by the charitable company in inducing third parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose
26
DocuSign Envelope ID: C608050B-A7EA-41E1-B0F4-7149E4DE2FFF
## **Money Advice Trust**
## **Notes to the financial statements**
**For the year ended 31 December 2020**
- Expenditure on charitable activities includes the costs of running our debt advice services, providing debt advice training and research and policy work undertaken to further the purposes of the charity and their associated support costs
- Other expenditure represents those items not falling into any other heading
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
27
DocuSign Envelope ID: C608050B-A7EA-41E1-B0F4-7149E4DE2FFF
## **Money Advice Trust**
## **Notes to the financial statements**
## **For the year ended 31 December 2020**
## **1 Accounting policies (continued)**
## **i) Allocation of support costs**
Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, plus fundraising costs are apportioned based on an estimate of staff time attributable to each activity.
Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.
## **j) Operating leases**
Rental charges are charged on a straight line basis over the term of the lease.
## **k) Tangible fixed assets**
Items of equipment are capitalised where the purchase price exceeds £1,500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.
Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:
|˜|Computer Equipment|3 years|
|---|---|---|
|˜|Furniture|5 years|
|˜|Fixtures & Fittings|6 years|
## **l) Debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **m) Cash at bank and in hand**
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **n) Creditors and provisions**
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## **o) Financial instruments**
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
## **p) Pensions**
The charitable company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charitable company in an independently administered fund. The pension cost charge represents contributions payable under the scheme by the charitable company to the fund. The charitable company has no liability under the scheme other than for the payment of those contributions.
28
DocuSign Envelope ID: C608050B-A7EA-41E1-B0F4-7149E4DE2FFF
## **Money Advice Trust**
## **Notes to the financial statements**
## **For the year ended 31 December 2020**
## **2 Income from donations**
|**Income from donations**|||
|---|---|---|
|Northumbrian Water
QuickQuid/Cash EuroNet UK
Barclays
Lloyds Banking Group
NatWest
HSBC
Npower
Nationwide
Virgin Money
Donations
Santander
MBNA
Yorkshire Building Society
Capital One
UKAR
Phoenix Commercial Collections
American Express Foundation
Provident Financial
Wescot Credit Services
Amigo Loans
Experian
Wessex Water
Home Retail Group/Argos
Eon
Tesco
Indigo Loans Ltd
Tesco Mobile
Affinity Water Ltd
TDX
Brighthouse|**2020**
**Total**
**£**
**1,170,000**
**1,167,350**
**879,311**
**681,816**
**422,875**
**350,000**
**138,300**
**105,000**
**77,100**
**72,273**
**68,000**
**36,255**
**35,000**
**26,683**
**25,300**
**22,630**
**19,857**
**16,000**
**15,950**
**15,000**
**13,000**
**11,400**
**10,500**
**10,000**
**-**
**-**
**-**
**-**
**-**
**-**|2019
Total
£
842,553
1,167,545
680,000
685,149
-
345,826
137,000
100,000
74,800
71,800
103,600
75,410
30,000
25,000
21,700
23,300
21,725
16,000
12,915
15,000
13,000
10,267
10,600
7,500
316,226
59,400
48,500
30,616
25,000
8,400|
||**5,389,600**|4,978,832|
All donations listed were unrestricted funds.
29
DocuSign Envelope ID: C608050B-A7EA-41E1-B0F4-7149E4DE2FFF
## **Money Advice Trust**
## **Notes to the financial statements**
## **For the year ended 31 December 2020**
## **3a Income from charitable activities**
|**3a**
**Income from charitable activities**|||||
|---|---|---|---|---|
|**i)**
**ii)**
**iii)**
Other Donations
Ofgem Redress Payment
Building Societies Trust
Scottish Government
Barclays
MBNA
Brighthouse
Welsh Government
HMRC
Accountant in Bankcruptcy
Haven Power
Virgin Money
Payplan (IVA)
Money and Pension Service
EDF Energy
**Training**
UKAR
StepChange Debt Charity (IVA)
Yorkshire Building Society
Npower
Payplan (DMP)
Lloyds Banking Group
Provident Financial
**Debt Advice**
Barclays
Scottish & Southern Electric
Insolvency Service (DRO)
Business Energy Solutions
Scottish Government
HMRC Loan Charge
Energy Saving Trust
Citizens Advice
StepChange Debt Charity (DMP)
Money and Pension Service
Nationwide
HSBC
Santander
Total income from charitable activities
Sub-total for Influencing and Policy
Training Course Income (49 funders (2019: 82))
**Influencing and Policy**
Sub-total for Debt Advice
Provident Financial
Sub-total for Training
Provident Financial
Welsh Government|Unrestricted
£
-
-
364,714
-
-
-
-
-
-
-
-
-
-
38,680
37,200
-
-
-
-
-
-
5,800
-
4,910
-
-
-
-
-
-
-
-|Restricted
£
4,654,083
1,341,021
-
341,178
325,142
300,350
157,641
121,656
115,726
183,236
75,000
53,800
50,000
-
-
21,700
27,000
23,910
12,168
9,626
8,840
-
5,200
-
1,000
-
-
-
-
-
-
-|**2020**
**Total**
**£**
**4,654,083**
**1,341,021**
**364,714**
**341,178**
**325,142**
**300,350**
**157,641**
**121,656**
**115,726**
**183,236**
**75,000**
**53,800**
**50,000**
**38,680**
**37,200**
**21,700**
**27,000**
**23,910**
**12,168**
**9,626**
**8,840**
**5,800**
**5,200**
**4,910**
**1,000**
**-**
**-**
**-**
**-**
**-**
**-**
**-**|2019
Total
£
3,440,550
1,321,204
359,855
174,711
236,160
737,451
97,417
81,492
73,887
292,639
12,000
-
54,655
85,544
54,000
-
21,700
15,368
-
-
8,500
5,400
5,200
6,330
1,000
130,187
30,000
16,500
9,450
9,050
1,000
20|
||451,304
-
456,513
-
-
-
-|7,828,277
512,610
-
123,000
34,560
16,094
-|**8,279,581**
**512,610**
**456,513**
**123,000**
**34,560**
**16,094**
**-**|7,281,270
**389,980**
**666,554**
-
**-**
**12,071**
**12,000**|
||456,513
-|686,264
-|**1,142,777**
**-**|1,080,605
25,300|
||-|-|**-**|25,300|
||907,817|8,514,541|**9,422,358**|8,387,175|
30
DocuSign Envelope ID: C608050B-A7EA-41E1-B0F4-7149E4DE2FFF
## **Money Advice Trust**
## **Notes to the financial statements**
## **For the year ended 31 December 2020**
## **3b Income from charitable activities prior year**
|**i)**
**ii)**
**iii)**
**Debt Advice**
Money and Pension Service
Citizens Advice
Ofgem Redress Payment
Lloyds Banking Group
StepChange Debt Charity (DMP)
Scottish Government
Barclays
Brighthouse
Barclaycard
HSBC
Welsh Government
Santander
Payplan (DMP)
Payplan (IVA)
Building Societies Trust
Nationwide
Clydesdale & Yorkshire Bank/Virgin
Accountant in Bankcruptcy
Training Course Income (82 funders (2018: 65)
Money and Pension Service
Welsh Government
Provident Financial
Sub-total for Training
**Influencing and Policy**
Provident Financial
Sub-total for Debt Advice
HMRC
Haven Power
Npower
Sub-total for Influencing and Policy
Total income from charitable activities
**Training**
Scottish & Southern Electric
EDF Energy
Business Energy Solutions
Insolvency Service (DRO)
StepChange Debt Charity (IVA)
Yorkshire Building Society
UKAR
Other Donations|Unrestricted
£
-
-
-
-
359,855
-
-
-
-
-
-
-
-
85,544
54,000
-
-
-
-
-
-
-
-
-
6,330
5,400
-
-
-|Restricted
£
3,440,550
1,321,204
737,451
236,160
-
174,711
165,226
130,187
127,413
97,417
81,492
73,887
54,655
-
-
30,000
21,700
16,500
15,368
12,000
9,450
9,050
8,500
5,200
-
-
1,000
1,000
20|**2019**
2018
**Total**
Total
**£**
£
**3,440,550**
8,732
**1,321,204**
1,342,120
**737,451**
540,121
**236,160**
208,839
**359,855**
360,781
**174,711**
215,493
**165,226**
152,654
**130,187**
116,225
**127,413**
107,430
**97,417**
86,189
**81,492**
32,064
**73,887**
49,871
**54,655**
30,000
**85,544**
110,000
**54,000**
69,991
**30,000**
12,517
**21,700**
7,152
**16,500**
10,728
**15,368**
10,728
**12,000**
-
**9,450**
92,000
**9,050**
8,940
**8,500**
7,050
**5,200**
-
**6,330**
5,000
**5,400**
2,600
**1,000**
174,397
**1,000**
100,000
**20**
70,000
7,281,270
**666,554**
234,420
**389,980**
371,937
**12,071**
-
**12,000**
105
**1,080,605**
606,462
**25,300**
**25,300**
-
**8,387,175**
4,583,184|
|---|---|---|---|
||511,129
666,554
-
-
-|6,770,141
-
389,980
12,071
12,000||
||666,554
-|414,051
25,300||
||-|25,300||
||1,177,683|7,209,492||
31
DocuSign Envelope ID: C608050B-A7EA-41E1-B0F4-7149E4DE2FFF
## **Money Advice Trust**
## **Notes to the financial statements**
## **For the year ended 31 December 2020**
## **4a Analysis of expenditure**
|Staff costs (Note 7)
IT & Telephony
Occupancy
Adviser Training
Grants (Note 5)
Other Staff Costs
Commercial Training
Other Costs
Self Help Packs
Travel
Depreciation
Publicity & Promotion
Research
Support costs
Governance costs
**Total expenditure 2020**
Total expenditure 2019|Cost of raising
funds
£
217,260
12,259
18,065
-
-
3,622
-
13,831
-
1,080
1,317
390
-|Charitable activities|Charitable activities|Charitable activities|Governance
costs
£
130,638
5,001
8,886
-
-
1,790
-
16,435
-
-
450
-
-|Support
costs
£
1,348,230
86,566
97,816
-
-
37,178
-
46,111
-
6,556
11,516
-
-|**2020**
**Total**
2019
Total
**£**
£
**9,280,726**
8,592,163
**1,356,168**
1,047,257
**731,993**
737,151
**153,703**
225,561
**232,103**
267,928
**406,595**
225,916
**252,207**
295,544
**132,402**
140,781
**29,947**
70,361
**13,663**
46,218
**132,930**
135,124
**31,223**
58,991
**-**
-|
|---|---|---|---|---|---|---|---|
|||Debt Advice
£
6,876,170
1,186,061
523,992
-
-
312,268
-
41,518
29,947
2,291
90,772
19,499
-|Training
£
532,544
48,345
67,118
153,703
232,103
43,466
252,207
2,744
-
2,750
27,081
4,135
-|Influencing
and Policy
£
175,884
17,936
16,116
-
-
8,271
-
11,763
-
986
1,794
7,199
-||||
||267,824
30,592
3,056|9,082,518
1,481,115
147,933|1,366,196
96,841
9,672|239,949
25,425
2,539|163,200
-
(163,200)|1,633,973
(1,633,973)|**12,753,660**
11,842,995
**-**
-
**-**
-|
||**301,472**|**10,711,566**|**1,472,709**|**267,913**|**-**|**-**|**12,753,660**
-
11,842,995|
||407,165|9,694,628|1,558,736|182,466|-|-||
32
DocuSign Envelope ID: C608050B-A7EA-41E1-B0F4-7149E4DE2FFF
## **Money Advice Trust**
## **Notes to the financial statements**
## **For the year ended 31 December 2020**
## **4b Analysis of expenditure (prior year)**
|Cost of raising
funds
£
287,487
14,040
22,090
-
-
3,250
-
21,174
-
9,065
2,160
-
-|Charitable activities|Charitable activities|Charitable activities|Governance
costs
£
126,974
4,362
7,645
-
-
2,736
-
21,665
-
1,626
572
-
-|Support
costs
£
1,246,759
91,514
101,429
-
-
35,218
-
44,031
-
15,875
13,226
-
-|**2019**
**Total**
**£**
**8,592,163**
**1,047,257**
**737,151**
**225,561**
**267,928**
**225,916**
**295,544**
**140,781**
**70,361**
**46,218**
**135,124**
**58,991**
**-**|
|---|---|---|---|---|---|---|
||Debt Advice
£
6,318,409
881,945
553,441
-
-
157,036
48,851
70,361
7,506
90,834
11,499
-|Training
£
495,945
49,001
43,434
225,561
267,928
19,707
295,544
2,356
-
8,921
27,378
32,345
-|Influencing
and Policy
£
116,589
6,395
9,112
-
-
7,969
-
2,704
-
3,225
954
15,147
-||||
|359,266
43,271
4,628|8,139,882
1,404,518
150,228|1,468,120
81,860
8,756|162,095
18,403
1,968|165,580
-
(165,580)|1,548,052
(1,548,052)|**11,842,995**
**-**
**-**|
33
DocuSign Envelope ID: C608050B-A7EA-41E1-B0F4-7149E4DE2FFF
## **Money Advice Trust**
## **Notes to the financial statements**
## **For the year ended 31 December 2020**
## **5 Grant making**
|**Grant making**|||
|---|---|---|
|Grants to
institutions
£
Citizens Advice Bureau
Citizens Advice Scotland
Money Advice Scotland
Advice Northern Ireland
Institute of Money Advisers
Training
**Grants to institutions**|**2020**
**£**
18,100
5,000
59,000
-
150,003|2019
£
24,625
6,250
62,250
31,250
143,553|
||**232,103**|267,928|
Training - Grants given to partner agencies for the provision of Wiseradviser training. Business Debtline Northern Ireland - grant provided to Advice Northern Ireland to provide this service.
## **6 Net income for the year**
This is stated after charging:
|This is stated after charging:|||
|---|---|---|
||**2020**|2019|
||**£**|£|
|Depreciation|**132,930**|135,121|
|Operating lease rentals:|||
|Property|**175,091**|176,618|
|Other|**22,201**|17,837|
|Auditor's remuneration (excluding VAT):|||
|Audit|**11,000**|10,900|
|Other services|**1,214**|-|
34
DocuSign Envelope ID: C608050B-A7EA-41E1-B0F4-7149E4DE2FFF
## **Money Advice Trust**
## **Notes to the financial statements**
## **For the year ended 31 December 2020**
## **7 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel**
Staff costs were as follows:
|Salary Band
to
£69,999
to
£79,999
to
£89,999
to
£99,999
to
£109,999
to
£119,999
Employees receiving employee benefits in excess of £60,000, excluding NI and Pension:
£70,000
£80,000
£60,000
£90,000
£100,000
£110,000
Salaries and wages
Social security costs
Employer’s contribution to defined contribution pension schemes|**2020**
**£**
**7,979,862**
**751,801**
**549,063**|2019
£
7,346,930
729,837
515,396|
|---|---|---|
||**9,280,726**|8,592,163|
||**Total**
**2020**
**No.**
**8**
**-**
**1**
**1**
**-**
**1**
**11**|Total
2019
No.
1
2
1
-
-
1
5|
The Chief Executive's salary for 2020, excluding NI and Pension, was £116,350 (2019 - £113,355). The total employee benefits (including employer pension contributions and employer national insurance) of the key management personnel were £433,493 (2019: £428,579).
The charity contributes between 5% and 9% of annual salary to employees group personal pension scheme.
The charity trustees were not paid or received any other benefits from employment with the charity in the year (2019: £nil). No charity trustee received payment for professional or other services supplied to the charity (2019: £nil).
Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £nil (2019: £970) incurred by no (2019: 3) members relating to attendance at meetings of the trustees.
## **8 Staff numbers**
The average number of employees (average head count based on number of staff employed) during the year was as follows:
|Influencing and Policy
Support
Business Development
Debt Advice
Training|**2020**
**No.**
**200**
**13**
**3**
**31**
**4**|2019
No.
183
11
3
31
6|
|---|---|---|
||**251**|234|
## **9 Related party transactions**
There are no related party transactions to disclose for 2020 (2019: none).
There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.
35
DocuSign Envelope ID: C608050B-A7EA-41E1-B0F4-7149E4DE2FFF
## **Money Advice Trust**
## **Notes to the financial statements**
## **For the year ended 31 December 2020**
## **10 Taxation**
The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.
## **11 Tangible fixed assets**
|At the start of the year
Additions in year
Charge for the year
**Depreciation**
At the start of the year
**At the end of the year**
Eliminated on disposal
At the end of the year
At the start of the year
**Net book value**
At the end of the year
**Cost**
Disposals in year|Fixtures &
Fittings
£
180,659
-
-|Furniture
£
119,698
-
-|Computer
equipment
£
869,325
53,337
-|**Total**
**£**
**1,169,682**
**53,337**
**-**|
|---|---|---|---|---|
||180,659|119,698|922,662|**1,223,019**|
||125,824
18,278
-|71,820
23,938
-|745,752
90,714
-|**943,396**
**132,930**
**-**|
||144,102|95,758|836,466|**1,076,326**|
||36,557|23,940|86,196|**146,693**|
||54,835|47,878|123,573|226,286|
All of the above assets are used for charitable purposes.
36
DocuSign Envelope ID: C608050B-A7EA-41E1-B0F4-7149E4DE2FFF
## **Money Advice Trust**
## **Notes to the financial statements**
## **For the year ended 31 December 2020**
## **12 Debtors**
|Other debtors
Trade debtors
Prepayments
Accrued income|**2020**
**£**
**428,192**
**29,121**
**411,564**
**646,580**|2019
£
1,589,462
22,271
244,052
508,488|
|---|---|---|
||**1,515,457**|2,364,273|
## **13 Creditors: amounts falling due within one year**
|Accruals
Trade creditors
Taxation and social security
Other creditors
Deferred income (note 14)|**2020**
**£**
**261,620**
**211,137**
**215,538**
**99,480**
**586,140**|2019
£
178,888
200,172
103,830
103,196
1,310,931|
|---|---|---|
||**1,373,915**|1,897,017|
37
DocuSign Envelope ID: C608050B-A7EA-41E1-B0F4-7149E4DE2FFF
## **Money Advice Trust**
## **Notes to the financial statements**
## **For the year ended 31 December 2020**
## **14 Deferred income**
Deferred income comprises primarily of donation funding from Barclays due to Covid (£384k) for adviser resource
|Balance at the beginning of the year
Amount released to income in the year
Amount deferred in the year
Balance at the end of the year (Total)
Balance at the end of the year (falling due within one year)
Balance at the end of the year (falling due after one year)
Balance at the end of the year (Total)|**2020**
**£**
**1,310,931**
**(1,238,691)**
**513,900**|2019
£
4,458,219
(4,097,869)
950,581|
|---|---|---|
||**586,140**|1,310,931|
||**586,140**
**-**|1,310,931
-|
||**586,140**|1,310,931|
## **15a Analysis of net assets between funds (2020)**
|Net current assets
**Net assets at the end of the year**
Tangible fixed assets
Long term liabilities|General
unrestricted
£
-
6,965,654
-|Designated
£
80,536
62,500
-|Restricted
£
66,157
140,646
-|**Total funds**
**£**
**146,693**
**7,168,800**
**-**|
|---|---|---|---|---|
||**6,965,654**|**143,036**|**206,803**|**7,315,493**|
## **15b Analysis of net assets between funds (2019)**
|**Net assets at the end of the year**
Tangible fixed assets
Net current assets
Long term liabilities|General
unrestricted
£
-
4,600,097
-|Designated
£
118,616
237,803
-|Restricted
£
107,670
179,247
-|**Total funds**
**£**
**226,286**
**5,017,147**
**-**|
|---|---|---|---|---|
||**4,600,097**|**356,419**|**286,917**|**5,243,433**|
38
DocuSign Envelope ID: C608050B-A7EA-41E1-B0F4-7149E4DE2FFF
## **Money Advice Trust**
## **Notes to the financial statements**
## **For the year ended 31 December 2020**
## **16a Movements in funds current year**
|**Total restricted funds**
Total designated funds
**General funds**
**Total funds**
Training
Influencing and Policy
**Unrestricted funds:**
Designated funds:
BDL Case Support Officer Funding
**Total unrestricted funds**
Fixed Assets
3 Year Implementation Plan
**Restricted funds:**
Training - Capital Costs
Debt Advice - Capital Costs
Dilapidation Fund
Debt Advice - Citizens Advice
Debt Advice|At 1 January
2020
£
130,336
104,714
-
43,935
2,956
4,976|Income &
gains
£
6,477,986
9,270
1,341,021
686,264
-|Expenditure
& losses
£
(6,570,840)
(47,827)
(1,341,021)
(627,035)
(2,956)|Transfers
£
-
-
-
-
-
(4,976)|**At 31**
**December**
**2020**
**£**
**37,482**
**66,157**
**-**
**103,164**
**-**
**-**|
|---|---|---|---|---|---|
||286,917|8,514,541|(8,589,679)|(4,976)|**206,803**|
||175,303
-
62,500
118,616|-
-
-
-|-
(73,496)
-
(82,146)|(175,303)
73,496
-
44,066|**-**
**-**
**62,500**
**80,536**|
||356,419|-|(155,642)|(57,741)|**143,036**|
||4,600,097|6,311,179|(4,008,339)|62,717|**6,965,654**|
||4,956,516|6,311,179|(4,163,981)|4,976|**7,108,690**|
||5,243,433|14,825,720|(12,753,660)|-|**7,315,493**|
## **16b Movements in funds prior year**
|**Movements in funds prior year**||||||
|---|---|---|---|---|---|
|**Total restricted funds**
Total designated funds
**General funds**
Designated funds:
Influencing and Policy
3 Year Implementation Plan
**Unrestricted funds:**
Training
Commercial Training
Training - Capital Costs
Dilapidation Fund
Fixed Assets
**Total unrestricted funds**
**Total funds**
**Restricted funds:**
Debt Advice
Debt Advice - Capital Costs
Debt Advice - Citizens Advice|At 1 January
2019
£
24,437
165,865
-
48,365
5,912
4,976|Income &
gains
£
5,448,937
1,321,204
414,051
25,300|Expenditure
& losses
£
(5,343,038)
(61,151)
(1,321,204)
(418,481)
(2,956)
(25,300)|Transfers
£
-
-
-
-
-|**At 31**
**December**
**2019**
**£**
**130,336**
**104,714**
**-**
**43,935**
**2,956**
**4,976**|
||249,555|7,209,492|(7,172,130)|-|**286,917**|
||175,303
13,763
62,500
37,689|-
-
-
-|-
(13,763)
-
(71,015)|-
-
-
151,942|**175,303**
**-**
**62,500**
**118,616**|
||289,255|-|(84,778)|151,942|**356,419**|
||3,160,771|6,177,355|(4,586,087)|(151,942)|**4,600,097**|
||3,450,026|6,177,355|(4,670,865)|-|**4,956,516**|
||3,699,581|13,386,847|(11,842,995)|-|**5,243,433**|
39
DocuSign Envelope ID: C608050B-A7EA-41E1-B0F4-7149E4DE2FFF
## **Money Advice Trust**
## **Notes to the financial statements**
## **For the year ended 31 December 2020**
## **Movements in funds (continued)**
## **Purposes of restricted funds**
Debt Advice includes the National Debtline, Business Debtline and Triage services. These services offer free, expert and professional debt advice via telephone and online channels. It also includes debt advice tools such as the Common Financial Statement and the Trust's self-help packs.
Capital Costs cover funding received for the purchase of capital items. The carry forward funding for this covers future year depreciation.
The Training programme provides free face-to-face and online money advice training. It includes training provided through the Money and Pension Service Debt Advice Project and grants to other organisations providing debt advice training.
Influencing and Policy covers the development of Trust policy in relation to specific issues and consultations affecting its activities and the debt advice sector.
## **Purposes of designated funds**
The Trustees have agreed to designate funds for the following:
- BDL Case Support Officer Funding - a temporary resource employed to pilot 'pre-advice' support and preparation.
- Funds for Fixed Assets have been designated. This fund only covers assets purchased using unrestricted funds.
- Dilapidation expenditure for 21 Garlick Hill, London and 8th Floor, Tricorn House, Birmingham;
The following previously designated funds have either been fully utilised or returned to reserves:
- Investment for the Trust's 3 year funding strategy including the CRM project and Marketing and overall implementation of these
- - projects
- Additional staff for the drive commercial revenue
## **17 Analysis of cash and cash equivalents**
|Cash in hand
Notice deposits (less than three months)
**Total cash and cash equivalents**|At 1 January
2020
£
3,049,891
1,500,000|Cash flows
£
2,477,367
-|Other
changes
£
-
-|**At 31**
**December**
**2020**
**£**
**5,527,258**
**1,500,000**|
|---|---|---|---|---|
||4,549,891|2,477,367|-|**7,027,258**|
40
DocuSign Envelope ID: C608050B-A7EA-41E1-B0F4-7149E4DE2FFF
## **Money Advice Trust**
## **Notes to the financial statements**
## **For the year ended 31 December 2020**
## **18 Operating lease commitments**
The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods
|periods|||||
|---|---|---|---|---|
|Five and more
Less than one year
Two to five years|**2020**
2019
**£**
£
367,738
175,092
1,451,646
1,470,950
1,221,891
1,570,324
**3,041,275**
3,216,366
Property||**2020**
2019
**£**
£
**12,781**
15,897
**21,060**
16,771
-
**-**
**33,841**
32,668
Equipment||
||**3,041,275**|3,216,366|**33,841**|32,668|
Note re: new lease
## **19 Legal status of the charity**
The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.
41