OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-12-31-accounts

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Charity number Company registration number

1099506 4741583 (England & Wales)

1

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

MONEY ADVICE TRUST TRUSTEES’ REPORT

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 11
and going concern
Structure, governance and management 13
Principal risks 14
Related parties 16
Fundraising policy 16
Remuneration policy 16
Reference and administrative details 18
Statement of Trustees’ responsibilities 19
Independent auditor’s report 21
Statement of fnancial activities (incorporating 25
an income and expenditure account)
Balance sheet 26
Statement of cashfows 27
Notes to the fnancial statements 28

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

MONEY ADVICE TRUST TRUSTEES’ REPORT

Introduction

The Trustees present their report and the audited financial statements for the year ended 31 December 2021.

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.

Vision

The Money Advice Trust helps people across the UK to tackle their debts and manage their money with confidence.

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 each 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 also work in partnership with the advice sector in Scotland and Northern Ireland to make our training available without charge 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.

3

MONEY ADVICE TRUST TRUSTEES’ REPORT

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Strategic report

Achievements and performance

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 2021 are covered below.

As with the rest of the sector, at National Debtline and Business Debtline we had seen 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. During 2021 we started to see numbers rise again.

1 - National Debtline

2 - Business Debtline

4

We have continued our partnership with Citizens Advice, answering 58,900 calls from clients who phoned their AdviceLine 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

Our training is delivered through e-learning, interactive virtual sessions and webinars to give advisers a range of methods to access.

New topics that were developed during the year were

We delivered webinars on a range of subjects including:

We partnered with MaPS to train advisers recruited to help meet the predicted demand in debt advice as a result of the COVID- 19 pandemic. As a result of this partnership, the Wiseradviser team put 130 new advisers through our specialist advice programme between November 2020 and April 2021.

5

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:

Improving government debt collection

Securing improvements to debt options

Improving government debt collection

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 virtually (in ‘normal’ times it meets once in London and once in one of the devolved administrations).

6

MONEY ADVICE TRUST TRUSTEES’ REPORT

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Future plans and working together

We enter 2022 following the continued impact of the Covid pandemic. In addition to this we are now seeing significant increases in the cost of living, putting pressure on clients and meaning that demand for debt advice is expected to grow significantly in volume and complexity over the course of 2022 and beyond.

Our plan for this year has been written in the context of the Money and Pensions Service commissioning process for debt advice. This means we have needed to balance our priorities between what clients need now and the longer-term security of services and have focused on the following key objectives set out below.

Outline plan for 2022

National Debtline / Business Debtline

We will focus on serving our National Debtline and Business Debtline clients whilst preparing for a future commissioning environment and obtain Matrix accreditation for National Debtline following the Business Debtline accreditation already in place.

We will deliver a new Business Debtline Adviser Hub helping other debt advice organisations to help self-employed clients with more simple situations and prepare them for a Business Debtline referral.

Wiseradviser

We will deliver on the programme of training for the sector funded by Money and Pensions Service, including for rolled-over regional grants. We will also secure and prepare for training commitments with direct partners and we will offer City & Guilds assurance of our specialist training courses

Training & Consultancy

We will secure and deliver £500,000 of training and consultancy contracts, supporting organisations to help their customers in vulnerable circumstances. We will launch a training course on evaluating and monitoring outcomes for customers in vulnerable circumstances and offer City & Guilds assurance as part of our training offer.

7

We will help to launch the Enforcement Conduct Board to offer better protection for clients and enable better practice from the industry. We will follow up on our ‘Building Back Business’ report and contribute to public debate on the cost of living.

We will engage our charitable funders on 2023 and beyond in the context of the cost of living, demand for debt advice and continued need for support.

We will focus on the wellbeing of our people, considering how we continue to support them and improve ways of working and that our internal communication is optimal in a new hybrid working environment.

We will continue our work on Equity, Diversity and Inclusion working with our network to ensure that the voices of all groups are represented and heard.

8

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

MONEY ADVICE TRUST TRUSTEES’ REPORT

Financial review

During 2021 our total income increased to £16.3m (2020 - £14.8m) as we continued to grow our services, increasing our frontline staff by 26.

Following the outbreak of Covid-19 in 2020 and the impact to customer organisations of our training and consultancy services, the dip in this income stream has recovered in 2021. We have continued to make our offer more flexible, to meet the changing needs of organisations and the new FCA guidance, together with the increase in cost of living means there is a real need for support for customers in vulnerable circumstances. We are therefore confident that the increase in our income stream from the sale of our training and consultancy services to commercial and public sector organisations during 2021 will continue and we have a strong pipeline going into 2022 from which to build.

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 10% (2020 – 8%) and we continue to look for efficiencies and value for money.

Expenditure by charitable activity (£’m)

----- Start of picture text -----
0.3
1.6
Debt advice
Training
12.1
Influencing & policy
----- End of picture text -----

The year-end funds of £9.57m (2020 - £7.32m) fall into three categories: general unrestricted funds £8.07 (2020 - £6.97), restricted funds £0.12m (2020 - £0.21m) and designated general funds £1.39m (2020 - £0.14m).

The increase in unrestricted funds conforms to our reserves policy, which is described later.

9

How our funding was used in 2021

2% National Debtline 11% Business Debtline 27% Supporting the sector 60% Influencing policy and practice

We are very grateful to longstanding and more recent funders without whose support our work would not be impossible. The list of our funders can be found below:

10

MONEY ADVICE TRUST TRUSTEES’ REPORT

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

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.

We note that 52% of our income is from one source and we monitor this closely.

We also note the unprecedented situation that the Covid-19 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.

As we write this report the situation in Ukraine is unfolding and in addition to the direct impact on the lives of the Ukrainian people, it is having an impact on the prices of fuel and food in the UK. In addition, the increases in the cost of living and council tax and energy bills will have an impact on our running costs as well as impacting our clients and the most vulnerable.

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 £3.4 to £6.8m should be set aside to cover this in addition to £1.4m to cover future commitments beyond December 2022 like office rent until the break clause date.

The Board reports that in 2021 the year-end unrestricted reserves funds carry forward figure was £8.1m. This falls within the current reserves policy. (Covering in addition to the 3-6 months costs, the costs of offices rent until the break clause is due and other associated legal costs).

11

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.

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 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.

12

MONEY ADVICE TRUST TRUSTEES’ REPORT

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

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 company law. 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 four times in 2021. Anna Bennett stepped down as chair on 15 September 2021 and its other members are Laurence Burgess (who became chair from 15 Sept 2021), Lucy Malenczuk and Lawrence Slade. 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 2021. Paul Smee is the Chair and its other members are Ade Keasey, Vineeta Manchanda, Rebecca Wilkie and Adam Sharples. 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 twice in 2021. Rebecca Wilkie 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.

13

MONEY ADVICE TRUST TRUSTEES’ REPORT

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

We continue to be ably supported by our Ambassadors who help promote the Trust’s activities and support our influencing work.

During 2021 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, manages the day-to-day operation of the Trust’s activities under delegated authority.

Quality standards

The Trust achieved a Money and Pensions Service approved framework accreditation of the Matrix Standard in November 2021 for its Business Debtline service – a Quality Framework with a focus on both the governance of the organisation and on the quality of debt advice provided by our advisers. The Matrix Standard has a focus on continuous improvement, is valid for three years and we will be subject to annual reviews to update on how we have developed our governance and service to clients. We are planning similar accreditation for our NDL in 2022.

The Board reviews the quarterly KPIs, and complaints reports.

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 risks, 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 included Wellbeing of our staff and a follow-up audit to ensure completion of previous audit recommendations. 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.

14

Our key strategic risks as identified in 2021, with the mitigations we undertook were

Category Risk Description Mitigations
Finance Decrease of funding Engagement with funders to gain their buy-in and
to deliver our services continued support.
Development of new approaches on NDL and
BDL utilising technology.
Use of Funders’ Forum to demonstrate value of
supporting the Trust.
Clients The challenges in Increase in HR staf resource to aid with
scaling up resource to recruitment.
meet client demand Recruitment of ‘remote workers’ supported
by Virtual Contact Centre model to ensure
appropriate support and development.
People The wellbeing of
our staf with the		 ‘Protecting our People’ focus.
Wellbeing audit conducted with recommendations
circumstances of
remote working and		 being taken forward with Wellbeing consultants.
Hybrid working ofered to meet staf needs and
increased pressures circumstances.
Mental health First Aid training delivered to
managers.
Operational The move to hybrid Ways of Working approach to drive how we use
working and increased technology better.
reliance on technology
to deliver efective		 Disaster Recovery approach revised and
implemented with an emphasis on moving away
and reliable working from 3rd party reliance.

15

MONEY ADVICE TRUST TRUSTEES’ REPORT

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

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 are reviewed every 3 years and govern what we will and will not do in relation to donations made to the Trust and what funders can and cannot do. These are available on our website.

Remuneration principals

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 (EDI) are important to the Trust. We aim to be an inclusive and equitable employer, and we published our gender pay gap data in April 2022.

We appointed a consultant in July 2021 to help us with our EDI strategy. They have completed the first phase of the project to review all our policies and staff surveys and had focused group conversations with staff; the second phase is to widen our BAME network into a more inclusive forum and to develop our EDI strategy.

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.

16

MONEY ADVICE TRUST TRUSTEES’ REPORT

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

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.

17

MONEY ADVICE TRUST REFERENCE AND ADMINISTRATIVE DETAILS

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

President Baroness Tyler of Enfield Trustees Adam Sharples CB Chair Anna Bennett Laurence Burgess Ade Keasey Lucy Malenczuk Vineeta Manchanda Gail Scott-Spicer Left June 2021 Lawrence Slade Paul Smee Rebecca Wilkie Vice-Chair Chief Executive Joanna Elson CBE CDir

Ambassadors

Bim Afolami (appointed 18 July 2022), Baroness Coussins of Whitehall Park, Sir Ian Cheshire (appointed 18 July 2022), Sir Sherard Cowper-Coles KCMG LVO, Christine Farnish CBE (appointed 18 July 2022), Otto Thoresen, Simon Walker CBE, Rt Hon Sir Ian McCartney (resigned 18 July 2022), Sir Brian Pomeroy CBE (resigned 18 July 2022), Carol Sergeant CBE (resigned 18 July 2022)

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 ofce 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

18

MONEY ADVICE TRUST STATEMENT OF TRUSTEES’ RESPONSIBILITIES

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

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:

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:

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 2021 was nine (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.

19

MONEY ADVICE TRUST STATEMENT OF TRUSTEES’ RESPONSIBILITIES

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Auditor

Sayer Vincent LLP acted as the Charity’s auditor during the year. Sayer Vincent’s term has now ended and the Charity is re-tendering for audit services for the 2022 financial year.

The Trustees’ annual report which includes the strategic report has been approved by the Trustees on 18 July 2022 and signed on their behalf by

Adam Sharples

Trustee

Laurence Burgess Trustee

20

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES’ OF THE MONEY ADVICE TRUST

Opinion

We have audited the financial statements of Money Advice Trust (the ‘charitable company’) for the year ended 31 December 2021 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:

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.

21

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:

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:

22

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:

23

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

for and on behalf of Sayer Vincent LLP, Statutory Auditor

Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0T

24

Money Advice Trust

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 December 2021

Note
Unrestricted
£('000)
Income from:
2
5,748
-
3i
440
-
3ii
519
-
3iii
-
5
6,712
250
-
2,888
-
953
-
271
4
4,362
6
2,350
-
2,350
Reconciliation of funds:
7,108
9,458
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 movement in funds		 Note
Unrestricted
£('000)
Income from:
2
5,748
-
3i
440
-
3ii
519
-
3iii
-
5
6,712
250
-
2,888
-
953
-
271
4
4,362
6
2,350
-
2,350
Reconciliation of funds:
7,108
9,458
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 movement in funds		 Restricted
£('000)
-
9,062
506
-
-		 2021
Total
£('000)
5,748
9,502
1,025
-
5		 Unrestricted
£('000)
5,390
451
456
-
14		 Restricted
£('000)
-
7,828
687
-
-		 2020
Total
£('000)
5,390
8,279
1,143
-
14
6,712 9,568 16,280 6,311 8,515 14,826
250
2,888
953
271		 -
9,050
609
-		 250
11,938
1,562
271		 301
2,752
843
268		 -
7,960
630
-		 301
10,712
1,473
268
4,362 9,659 14,021 4,164 8,590 12,754
2,350
-		 (91)
-		 2,259
-		 2,147
5		 (75)
(5)		 2,072
-
2,350
7,108		 (91)
207		 2,259
7,315		 2,152
4,956		 (80)
287		 2,072
5,243
9,458 116 9,574 7,108 207 7,315

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.

25

Money Advice Trust

Company no. 4741583

Balance sheet

As at 31 December 2021

Note
Fixed assets:
11
Current assets:
12
Liabilities:
13
16
Total unrestricted funds
Cash at bank and in hand
Tangible assets
Debtors
The funds of the charity:
Creditors: amounts falling due within one year
Net current assets
Total net assets
Total assets less current liabilities
Restricted income funds
Unrestricted income funds:
Designated funds
General funds
Total charity funds		 £('000)
1,475
8,887		 2021
£('000)
816		 £('000)
1,515
7,027		 2020
£('000)
147
816
8,758		 147
7,168
10,362
1,604		 8,542
1,374
1,388
8,070		 143
6,965
9,574 7,315
9,574 7,315
116
9,458		 207
7,108
9,574 7,315

Approved by the Trustees on18 July 2022 signed on their behalf by

Adam Sharples Chair of Trustees

26

Money Advice Trust

Statement of cash flows

For the year ended 31 December 2021

Reconciliation of net income/(expenditure) to net cash flow from operating activities

Depreciation charges
Dividends, interest and rent from investments
Loss on disposal of fixed assets
Decrease in debtors
Increase in creditors
Note
£('000)
£('000)
2,860
5
(1,005)
(1,000)
1,860
7,027
17
8,887
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 by operating activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of fixed assets
2021
Cash flows from operating activities
Net income for the reporting period
(as per the statement of financial activities)
Net cash provided by operating activities		 Depreciation charges
Dividends, interest and rent from investments
Loss on disposal of fixed assets
Decrease in debtors
Increase in creditors
Note
£('000)
£('000)
2,860
5
(1,005)
(1,000)
1,860
7,027
17
8,887
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 by operating activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of fixed assets
2021
Cash flows from operating activities
Net income for the reporting period
(as per the statement of financial activities)
Net cash provided by operating activities		 Depreciation charges
Dividends, interest and rent from investments
Loss on disposal of fixed assets
Decrease in debtors
Increase in creditors
Note
£('000)
£('000)
2,860
5
(1,005)
(1,000)
1,860
7,027
17
8,887
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 by operating activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of fixed assets
2021
Cash flows from operating activities
Net income for the reporting period
(as per the statement of financial activities)
Net cash provided by operating activities		 2021
2020
£('000)
£('000)
2,259
2,072
336
133
(5)
(14)
-
-
40
849
230
(523)
2,860
2,517
£('000)
£('000)
2,517
14
(54)
(40)
2,477
4,550
7,027
2020		 2020
£('000)
2,072
133
(14)
-
849
(523)
2,517
1,860
7,027		 2,477
4,550
8,887 7,027

27

Money Advice Trust

Notes to the financial statements

For the year ended 31 December 2021

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 the first part of 2023 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 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:

28

Money Advice Trust

Notes to the financial statements

For the year ended 31 December 2021

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

29

Money Advice Trust

Notes to the financial statements

For the year ended 31 December 2021

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.

30

Money Advice Trust

Notes to the financial statements

For the year ended 31 December 2021

2 Income from donations

2021
Total
£('000)		 2020
Total
£('000)
5,748 5,390

All donations listed were unrestricted funds.

3a Income from charitable activities

3a
Income from charitable activities
i)
ii)
3b
i)
ii)
iii)
Debt Advice
Total income from charitable activities
Sub-total for Debt Advice
Sub-total for Training
Training
Income from charitable activities prior year
Debt Advice
Sub-total for Training
Influencing and Policy
Sub-total for Debt Advice
Sub-total for Influencing and Policy
Total income from charitable activities
Training		 Unrestricted
£('000)		 Restricted
£('000)		 2021
Total
£('000)		 2020
Total
£('000)
440 9,062 9,502 8,279
519 506 1,025 1,143
959 9,568 10,527 9,422
Unrestricted
£('000)		 Restricted
£('000)		 2020
Total
£('000)		 2,019
Total
£('000)
606,357
-
#REF!
451
457		 7,828
686		 8,279
1,143
- - -
908 8,514 9,422

31

Money Advice Trust

Notes to the financial statements

For the year ended 31 December 2021

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
Support costs
Governance costs
Total expenditure 2021
Total expenditure 2020		 Cost of raising
funds
£('000)
179
7
14
-
-
4
-
14
-
-
3
-		 Charitable activities Charitable activities Charitable activities Governance
costs
£('000)
157
4
13
-
-
3
-
15
-
-
2
-		 Support
costs
£('000)
1,531
88
111
-
-
73
-
62
-
10
34
-		 2021
Total
2020
Total
£('000)
£('000)
10,453
9,281
1,068
1,356
816
732
176
154
230
232
315
407
290
252
164
132
102
30
10
14
336
133
61
31
Debt Advice
£('000)
7,828
935
588
-
-
191
-
65
102
-
273
31		 Training
£('000)
570
26
72
176
230
41
290
5
-
-
19
15		 Influencing
and Policy
£('000)
188
8
18
-
-
3
-
3
-
-
5
15
221
26
3		 10,013
1,748
177		 1,444
107
11		 240
28
3		 194
-
(194)		 1,909
(1,909)		 14,021
12,754
-
-
-
-
250 11,938 1,562 271 - - 14,021
-
12,754
301 10,712 1,473 268 - -

32

Money Advice Trust

Notes to the financial statements

For the year ended 31 December 2021

4b 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
Support costs
Governance costs
Total expenditure 2020		 Cost of raising
funds
£('000)
217
12
18
-
-
4
-
14
-
1
1
1		 Charitable activities Charitable activities Charitable activities Governance
costs
£('000)
131
5
9
-
-
2
-
16
-
-
-
-		 Support
costs
£('000)
1,348
86
98
-
-
37
-
46
-
7
12
-		 2020
Total
£('000)
9,281
1,356
732
154
232
406
252
133
30
14
133
31
Debt Advice
£('000)
6,876
1,187
524
-
-
312
-
42
30
2
91
19		 Training
£('000)
533
48
67
154
232
43
252
3
-
3
27
4		 Influencing
and Policy
£('000)
176
18
16
-
-
8
-
12
-
1
2
7
268
31
2		 9,083
1,481
148		 1,366
97
10		 240
25
3		 163
-
(163)		 1,634
(1,634)		 12,754
-
-
301 10,712 1,473 268 - - 12,754

33

Money Advice Trust

Notes to the financial statements

For the year ended 31 December 2021

5 Grant making

Grant making
Grants to
institutions
£('000)
Citizens Advice Bureau
Citizens Advice Scotland
Money Advice Scotland
Institute of Money Advisers
Training
Grants to institutions		 2021
£('000)
16
1
15
198		 2020
£('000)
18
5
59
150
230 232

Training - Grants given to partner agencies for the provision of Wiseradviser training.

6 Net income for the year

This is stated after charging:

This is stated after charging:
2021 2020
£('000) £('000)
Depreciation 336 133
Operating lease rentals:
Property 368 175
Other 12 22
Auditor's remuneration (excluding VAT):
Audit 12 11
Other services 2 1

34

Money Advice Trust

Notes to the financial statements

For the year ended 31 December 2021

7 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Staff costs were as follows:

Salaries and wages
Social security costs
Employer’s contribution to defined contribution pension schemes		 2021
£('000)
9,006
842
605		 2020
£('000)
7,980
752
549
10,453 9,281

Employees receiving employee benefits in excess of £('000)60,000, excluding NI and Pension:

Salary Band
to
£69,999
to
£79,999
to
£89,999
to
£99,999
to
£109,999
to
£119,999
£70,000
£80,000
£60,000
£90,000
£100,000
£110,000		 Total
2021
No.
8
-
1
1
-
1		 Total
2020
No.
8
-
1
1
-
1
11 11

The Chief Executive's salary for 2021, excluding NI and Pension, was £118,420 (2020 - £116,350). The total employee benefits (including employer pension contributions and employer national insurance) of the key management personnel were £475,870 (2020: £433,493).

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 (2020: £nil). No charity trustee received payment for professional or other services supplied to the charity (2020: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £51 (2020: £nil) incurred by 1 (2020: 0) 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:

Debt Advice
Training
Influencing and Policy
Support
Business Development		 2021
No.
224
14
4
35
3		 2020
No.
200
13
3
31
4
280 251

9 Related party transactions

There are no related party transactions to disclose for 2021 (2020: none).

There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.

35

Money Advice Trust

Notes to the financial statements

For the year ended 31 December 2021

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

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 start of the year
Additions in year
At the end of the year
Cost
Disposals in year		 Fixtures &
Fittings
£('000)
181
542
(179)		 Furniture
£('000)
120
278
(120)		 Computer
equipment
£('000)
922
185
(264)		 Total
£('000)
1,223
1,005
(563)
544 278 843 1,665
144
127
(179)		 96
79
(120)		 836
130
(264)		 1,076
336
(563)
92 55 702 849
452 223 141 816
37 24 86 147

All of the above assets are used for charitable purposes.

12 Debtors

Trade debtors
Prepayments
Accrued income
Other debtors		 2021
£('000)
664
32
417
362		 2020
£('000)
428
29
412
646
1,475 1,515

13 Creditors: amounts falling due within one year

Trade creditors
Taxation and social security
Other creditors
Deferred income (note 14)
Accruals		 2021
£('000)
233
223
193
96
859		 2020
£('000)
262
211
216
99
586
1,604 1,374

36

Money Advice Trust

Notes to the financial statements

For the year ended 31 December 2021

14 Deferred income

Deferred income comprises primarily of donation funding from NatWest for MAT's charitable activities (£560k) and JP Morgan grant funding for debt advice (£157k)

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)		 2021
£('000)
586
(521)
794		 2020
£('000)
1,311
(1,239)
514
859 586
859
-		 586
-
859 586

15a Analysis of net assets between funds (2021)

Net current assets
Net assets at the end of the year
Tangible fixed assets
Long term liabilities		 General
unrestricted
£('000)
-
8,070
-		 Designated
£('000)
725
663
-		 Restricted
£('000)
91
25
-		 Total funds
£('000)
816
8,758
-
8,070 1,388 116 9,574

15b Analysis of net assets between funds (2020)

Net assets at the end of the year
Tangible fixed assets
Net current assets
Long term liabilities		 General
unrestricted
£('000)
-
6,965
-		 Designated
£('000)
81
62
-		 Restricted
£('000)
66
141
-		 Total funds
£('000)
147
7,168
-
6,965 143 207 7,315

37

Money Advice Trust

Notes to the financial statements

For the year ended 31 December 2021

16a Movements in funds current year

Total restricted funds
Total designated funds
General funds
Total restricted funds
Total designated funds
General funds
CRM and Data Warehouse
Total funds
Training
Influencing and Policy
Unrestricted funds:
Designated funds:
Total unrestricted funds
Fixed Assets
Restricted funds:
Debt Advice - Capital Costs
Dilapidation Fund
Debt Advice - Citizens Advice
Debt Advice
Designated funds:
Influencing and Policy
3 Year Implementation Plan
Unrestricted funds:
Training
Commercial Training
Movements in funds prior year
Restricted funds:
Debt Advice
Debt Advice - Capital Costs
Debt Advice - Citizens Advice
Training - Capital Costs
Dilapidation Fund
Fixed Assets
Total unrestricted funds
Total funds		 At 1 January
2021
£('000)
38
66
-
103
-		 Income &
gains
£('000)
7,607
132
1,323
506
-		 Expenditure
& losses
£('000)
(7,620)
(107)
(1,323)
(609)		 Transfers
£('000)
-
-
-
-
-		 At 31
December
2021
£('000)
25
91
-
-
-
207 9,568 (9,659) - 116
-
62
81		 -
-		 -
-
(229)		 600
-
874		 600
62
726
143 - (229) 1,474 1,388
6,965 6,712 (4,133) (1,474) 8,070
7,108 6,712 (4,362) - 9,458
7,315 16,280 (14,021) - 9,574
At 1 January
2020
£('000)
131
105
-
44
3
5		 Income &
gains
£('000)
6,478
9
1,341
686
-		 Expenditure
& losses
£('000)
(6,571)
(48)
(1,341)
(627)
(3)		 Transfers
£('000)
-
-
-
-
-
(5)		 At 31
December
2020
£('000)
38
66
-
103
-
-
288 8,514 (8,590) (5) 207
175
-
62
119		 -
-
-
-		 -
(73)
-
(82)		 (175)
73
-
44		 -
-
62
81
356 - (155) (58) 143
4,600 6,311 (4,009) 63 6,965
4,956 6,311 (4,164) 5 7,108
5,244 14,825 (12,754) - 7,315

16b Movements in funds prior year

38

Money Advice Trust

Notes to the financial statements

For the year ended 31 December 2021

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:

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
£('000)
5,527
1,500		 Cash flows
£('000)
1,860
-		 Other
changes
£('000)
-
-		 At 31
December
2021
£('000)
7,387
1,500
7,027 1,860 - 8,887

39

Money Advice Trust

Notes to the financial statements

For the year ended 31 December 2021

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		 2021
2020
£('000)
£('000)
368
368
1,356
1,451
949
1,222
2,673
3,041
Property		 2021
2020
£('000)
£('000)
10
13
11
21
-
-
21
34
Equipment
2,673 3,041 21 34

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.

40