**Charity Registration No. 1100450**
**Company Registration No. 04794809 (England and Wales)**
## **CITIZENS ADVICE SEFTON**
## **ANNUAL REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2021**
## **CITIZENS ADVICE SEFTON**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|Mr B Culshaw||
|---|---|---|
||Ms A M Gibbon||
||Ms L D Gibbs||
||Mr G Hignett||
||Ms E Mercer||
||Ms P Hardy||
||Ms L Heap||
||Ms V Roberts|(Appointed 8 May 2021)|
||Ms L Evans|(Appointed 1 September 2021)|
||Mr R Mathew|(Appointed 22 September 2021)|
||Ms S Critchley|(Appointed 22 September 2021)|
|**Secretary**|Ms P A Killen||
|**Charity number**|1100450||
|**Company number**|04794809||
|**Registered office**|297 Knowsley Road||
||Bootle||
||Merseyside||
||L20 5DF||
|**Auditor**|DSG||
||Castle Chambers||
||43 Castle Street||
||Liverpool||
||L2 9TL||
## **CITIZENS ADVICE SEFTON**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 5|
|Statement of trustees' responsibilities|6|
|Independent auditor's report|7 - 9|
|Statement of financial activities|10|
|Balance sheet|11|
|Statement of cash flows|12|
|Notes to the financial statements|13 - 25|
## **CITIZENS ADVICE SEFTON**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
The trustees present their annual report and financial statements for the year ended 31 March 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charitable company's Memorandum and Articles of Association , the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) " (effective 1 January 2019 ).
## **Objects**
The Charity’s objects are to promote any charitable purpose for the public benefit by the advancement of education, the protection and preservation of health and the relief of poverty, sickness and distress in particular, but without limitation, for the benefit of the community in Merseyside and surrounding areas.
## **Aims, Objectives, Strategies and Activities for the Year**
The aims of Citizens Advice Sefton are to provide advice people need for the problems they face and to improve the policies and practices that affect people’s lives.
The service we provide is free, independent, confidential, and impartial. We value diversity, promote equality and challenge discrimination.
Our staff and volunteers deliver a range of advice services to the public on issues that impact on the quality of people’s lives such as debt, welfare benefits, housing, and employment. During the pandemic we have primarily offered this service through Adviceline, telephone appointments, video appointments and webchat.
As a delivery partner within Living Well Sefton we have continued to support people with issues impacting on their health and wellbeing. Our team has provided support to local people to navigate their problems during the pandemic such as housing issues, debt problems and benefit claims and appeals.
As a partner in the Liverpool city region wide Money Advice partnership (GMMAP) our advisers have helped people with multiple and complex debt problems .
In October 2020 we successfully completed our partnership with the Better off Finance Programme; a programme of support funded by Building Better Opportunities (A National Lottery and European Social Fund programme) This project is led by The Women’s Organisation and it reaches across the Liverpool City region helping local communities build financial resilience.
During the year we were able to help people reduce energy costs and switch suppliers with support of funding from Ofgem through Citizens Advice Energy Advice Programme.
Our research and campaigns work has included awareness raising around Scams with a regular Scam Action Service column in a local newspaper, both online and hard copy. We have identified a number of issues where we have sought further evidence including ending of the ban of bailiff enforced evictions, Universal Credit Post Claim Verification, rogue landlords and also rogue builders. We participated in Scam Awareness Week and also the national Citizens Advice campaign to ' #KeepTheLifeline ' to keep the £20 a week Universal Credit uplift. Our volunteer Research and Campaigns Co-ordinator retired in March 2021 after many years in the role and we are supporting a new Co-ordinator to take up their new role.
Despite being unable to work in person at Clock View, an inpatient mental health facility we were able to support patients and take referrals by telephone and continue a lifeline for welfare rights support.
Our advisers conducted tribunal representation through telephone hearings with the Tribunal service throughout the year and so continue to act for some of our most vulnerable clients with ongoing health problems.
For a second year we received funding to help people to navigate the universal credit system supporting people with new online claims. This support was provided via a direct helpline, webchat, vide o link and some face to face appointments.
- 1 -
## **CITIZENS ADVICE SEFTON**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Public Benefit**
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charitable company should undertake.
The principal activity of Citizens Advice Sefton is the provision of free, confidential, independent, and impartial advice, information and counsel for members of the public
## **Contribution of Volunteers**
Many of our volunteers have continued to help run the advice services remotely from their homes during the year. Citizens Advice Sefton relies on the help and support of volunteers in advising the public and administering and governing the charity. The goodwill and commitment given by volunteers is essential to the existence of the charity. Volunteers improve not just the capacity of Citizens Advice to improve lives but the communities in Sefton in general benefit. It is also well documented that volunteering improves wellbeing, strengthens communities, improves social cohesion, and gives people a greater stake in their local area.
## **Achievements and performance**
During the year our staff and volunteers helped 4,710 people with 17,761 issues. Whilst this represents an overall reduction in numbers of clients seen due to the closure of the drop in service it is noticeable that despite this the number of issues related to universal credit (6,446 issues) remains high representing 36% of all enquiries and 59% of all benefit enquiries. Advice was given on over 1,000 debt relief orders and bankruptcy issues.
Significant outcomes were achieved during the year for people who sought the help of our advisers. There was a total income gain of £5,640,580, Reimbursement amounting to £10,712 was achieved on behalf of clients. Debts to the value of £1,379,554 were written off and debts of £9,709 were rescheduled for more affordable repayment plans .
## **Fundraising activities**
Income from fundraising activities for the year to 31 March 2021 was £ 2,330 (2020 £2,308) Expenditure incurred in fundraising was £nil (2020: £nil).
## **Investment activities**
The charity does not currently hold material investments .
## **Factors affecting the achievements of objectives**
The pandemic continued to impact on our ability to deliver face to face services to clients, but we have gained experience in working remotely and have worked to gain funding to ensure that staff, trustees and volunteers can work remotely with appropriate equipment, security and training. The charity will continue to return to deliver advice from its offices, but this will work alongside telephone, webchat, and video conferencing.
## **Financial review**
The charity achieved a net income in 20 20 /2 1 of £ 84,293 (201 9/20 : £ 61,904 ). This outcome continued to validate the Board’s strategic decision in earlier years to retain a core level of human resources and delivery capability despite changeability and uncertainty surrounding several projects and the impact of Covid - 19 during the final quarter of the year. The strategy reflects the Board’s confidence in the management team’s ability to continually source replacement funding as projects expire. After adjusting for £ 104,356 partner receipts which were passed on, year o n year income increased by just over 2 % from £9 71,284 to £9 92,685 .
## **Reserves policy**
The surplus increased the general reserve to £564,518, which continues to comply with Citizens Advice Sefton’s policy of being capable of funding 3-6 months working capital requirements. The designated premises reserve remains at £100,000. This reserve is primarily intended to fund the relocation to improved premises in Southport the refurbishment of which is yet to be completed.
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## **CITIZENS ADVICE SEFTON**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Funds in deficit**
No funds were in deficit at the balance sheet date .
## **Principal Funding Sources**
The Directors extend their gratitude to:
The Big Lottery and The European Social Fund who fund the Better Off Finance project across the Liverpool City region helping us to work with our partners to support people experiencing issues including unemployment and lack of financial skills.
Sefton Borough Council who continue to support the core operating capacity of the charity and who also support the work of Citizens Advice Sefton through public health funding for Living Well Sefton.
The trustees of The Freshfield Foundation who fund Citizens Advice Sefton and Citizens Advice Liverpool to provide tribunal representation and support which is no longer funded through legal aid.
South Sefton and Southport and Formby Clinical Commissioning Groups for supporting vital work supporting a vulnerable client group in Clock View in-patient mental health facility.
Money Advice and Pensions Service who fund the Greater Merseyside Money Advice Partnership which enables Citizens Advice Sefton to deliver money advice services in Sefton.
Citizens Advice, who have supported delivery of energy advice to the public in Sefton through the Energy Advice programme funded by OFGEM, and also fund the sub- contract for the Help to Claim Service and Best Practice Lead (Merseyside)
The charity did not have any borrowings from either provider of funding or other sources at the balance sheet date.
## **Investment policies**
As required in its Memorandum paragraph 4.15 in furtherance of its objects, and for no other purposes, the Company has the power to invest the monies of the Company not immediately required for its purposes in or upon such investments, securities or property as may be thought fit, subject nevertheless to such conditions and such consents as may for the time being be imposed or required by law .
## **Major risks**
Citizens Advice Sefton has worked on a risk management exercise. A risk management strategy and risk register were agreed by the trustee board. The trustees recognise that any major risks to which the charity is exposed need to be reviewed and systems put in place to mitigate those risks. To that end Citizens Advice Sefton is continually monitoring and managing its risk, reviewing the corporate risk register and ensuring action plans are in place to mitigate key risks.
Citizens Advice Sefton has adopted the recommended Citizens Advice information risk policy. The trustees review any non- compliance with procedures. There were no incidences of data breaches to report .
## **Plans for the future**
We plan to open up the office in Southport in 2022 so that we can retain, recruit and train local volunteers to deliver services. However, we anticipate continuing to work in outreach with local communities and continuing to provide an increased level of advice and support by telephone, email, and webchat .
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## **CITIZENS ADVICE SEFTON**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Structure, governance and management**
Citizens Advice Sefton is a registered charity and a company limited by guarantee. It is also known and referred to as Sefton CAB. The maximum liability of each member is limited to one pound. It is governed by a Memorandum and Articles of Association 2003 as amended on 15th January 2008 and was incorporated under the Companies Act as a private company on 11th June 2003.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Ms R Bord (Resigned 10 December 2020)
Mr B Culshaw Ms A M Gibbon Ms L D Gibbs Mr G Hignett Ms E Mercer Ms P Hardy Ms J Austin (Resigned 25 May 2021) Ms L Heap Ms V Roberts (Appointed 8 May 2021) Ms L Evans (Appointed 1 September 2021) Mr R Mathew (Appointed 22 September 2021) Ms S Critchley (Appointed 22 September 2021)
## **Recruitment, Appointment and Induction of Trustees**
Trustees, who are also Directors of the Company, are elected in accordance with the Memorandum and Articles of Association. An Executive Group made up of Trustees and chaired by the Chair is established to oversee the elections process for Board appointments. A separate process agreed by the Trustee Board is followed for the election of the Chair. No other persons or bodies external to the charity were entitled to appoint persons to the Trustee Board.
New Trustees follow a programme of induction into the Citizens Advice service and are issued with an induction pack.
## **Organisational Structure**
Citizens Advice Sefton is governed by its Trustee Board which is responsible for setting the strategic direction of the organisation and the policy of the charity. The Trustees carry the ultimate responsibility for the conduct of Citizens Advice Sefton and for ensuring that the charity satisfies its legal and contractual obligations. Trustees meet at a minimum quarterly and delegate the day-to-day operation of the organisation to senior management. The Trustee Board is independent from management. A register of Directors' interests is maintained at the registered office and is available to the public.
## **Key management remuneration**
Pay scales for senior staff are benchmarked against similar posts in the Citizens Advice network.
## **Related parties**
Citizens Advice Sefton is a member of Citizens Advice, the operating name of the National Association of Citizens Advice Bureaux, which provides a framework for standards of advice and casework management as well as monitoring progress against these standards. Operating policies are independently determined by the Trustee Board of Citizens Advice Sefton in order to fulfil its charitable objects and comply with the national membership requirements.
The charity also co-operates and liaises with a number of other statutory and voluntary services, local and national charities on behalf of clients. Where one of the Trustees holds the position of Trustee/Director of another charity they may be involved in discussions regarding that other charity but not in the ultimate decision-making process.
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## **CITIZENS ADVICE SEFTON**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Auditor**
In accordance with the company's articles, a resolution proposing that DSG be reappointed as auditor of the company will be put at a General Meeting.
## **Disclosure of information to auditor**
Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.
The trustees' r eport was approved by the Board of Trustees.
## **Ms P A Killen**
Secretary Dated: 9 December 2021
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## **CITIZENS ADVICE SEFTON**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
The trustees, who are also the directors of Citizens Advice Sefton for the purpose of company law, are responsible for preparing the Trustees' 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 year.
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 have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in 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.
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## **CITIZENS ADVICE SEFTON**
## **INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF CITIZENS ADVICE SEFTON**
## **Opinion**
We have audited the financial statements of Citizens Advice Sefton (the ‘charitable company’) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 March 2021 and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with 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 the charitable company’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.
## **Other information**
The other information comprises the information included in the annual 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.
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## **CITIZENS ADVICE SEFTON**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF CITIZENS ADVICE SEFTON**
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of our audit:
- the information given in the trustees' r eport, which includes the d irectors ' r eport prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the d irectors ' r eport included within the trustees' r eport 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 d irectors ' r eport included within the trustees' r eport.
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; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies ' exemptions in preparing the trustees' r eport and from the requirement to prepare a s trategic r eport.
## **Responsibilities of trustees**
As explained more fully in the s tatement of trustees' r esponsibilities, the trustees, who are also the directors of the charitable company for the purpose 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.
## **Capability of the audit in detecting irregularities, including fraud**
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, is detailed below.
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## **CITIZENS ADVICE SEFTON**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF CITIZENS ADVICE SEFTON**
Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.
The following laws and regulations were identified as being of significance to the entity:
- Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and Charity Law.
- Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the charity and therefore may have a material effect on the financial statements include compliance with charitable objectives, public benefit, fundraising regulations, safeguarding and health and safety legislation.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and the Trustees as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of Trustee meeting minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// 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 auditors' 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.
**Andrew Moss BA FCA (Senior Statutory Auditor) for and on behalf of DSG** 9 December 2021 **Chartered Accountants Statutory Auditor** Castle Chambers 43 Castle Street Liverpool L2 9TL
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## **CITIZENS ADVICE SEFTON**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**3**
400
-
Charitable activities
**4**
303,015
790,040
Other trading activities
**5**
2,330
-
Investments
**6**
1,256
-
**Total income**
307,001
790,040
**Expenditure on:**
Charitable activities
**7**
222,708
790,040
**Net income for the year/**
**Net movement in funds**
84,293
-
Fund balances at 1 April 2020
580,225
-
**Fund balances at 31 March**
**2021**
664,518
-|**Total Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2020**
**2020**
**£**
**£**
**£**
400
952
-
1,093,055
276,228
787,678
2,330
2,308
-
1,256
193
-
1,097,041
279,681
787,678
1,012,748
217,777
787,678
84,293
61,904
-
580,225
518,321
-
664,518
580,225
-|**Total**
**2020**
**£**
952
1,063,906
2,308
193
1,067,359
1,005,455
61,904
518,321
580,225|
|---|---|---|
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
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## **CITIZENS ADVICE SEFTON**
## **BALANCE SHEET**
## _**AS AT 31 MARCH 2021**_
|**2021**
**Notes**
**£**
**£**
**Fixed assets**
Tangible assets
**11**
20,939
**Current assets**
Debtors
**12**
18,761
Cash at bank and in hand
757,733
776,494
**Creditors: amounts falling due within**
**one year**
**13**
(132,915)
Net current assets
643,579
**Total assets less current liabilities**
664,518
**Income funds**
Unrestricted funds
Designated funds
**16**
100,000
General unrestricted funds
564,518
664,518
664,518
The financial statements were approved by the Trustees on 9 December 2021
Ms A M Gibbon
Ms L Heap
**Trustee**
**Trustee**
**Company Registration No. 04794809**|**2020**
**£**
43,524
602,277
645,801
(85,716)
100,000
480,225|**£**
20,140
560,085
580,225
580,225
580,225|
|---|---|---|
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## **CITIZENS ADVICE SEFTON**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**Notes**
**Cash flows from operating activities**
Cash generated from operations
**19**
**Investing activities**
Purchase of tangible fixed assets
Investment income received
**Net cash used in investing activities**
**Net cash used in financing activities**
**Net increase in cash and cash equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2021**
**£**
(19,756)
1,256|**£**
173,956
(18,500)
-
155,456
602,277
757,733|**2020**
**£**
(18,568)
193|**£**
166,233
(18,375)
-
147,858
454,419
602,277|
|---|---|---|---|---|
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## **CITIZENS ADVICE SEFTON**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies**
## **Charity information**
Citizens Advice Sefton is a private company limited by guarantee incorporated in England and Wales. The registered office is 297 Knowsley Road, Bootle, Merseyside, L20 5DF.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charitable company's Memorandum and Articles of Association, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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)" (effective 1 January 2019). The charitable company is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling , which is the functional currency of the charitable company . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
The trustees consider that it is appropriate to prepare the accounts on a going concern basis as the charity will be able to meet its liabilities as they fall due. In making this assessment the trustees have considered the impact of the Coronavirus which is prevalent at the time of approval of these accounts and are confident that they have adequate resources to continue to operate having taken account of current and future income streams and expenditure commitments.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements .
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
## **1.4 Income**
Income is recognised when the charitable company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charitable company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
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## **CITIZENS ADVICE SEFTON**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies**
## **(Continued)**
Grants receivable to finance the bureau's activities are credited to the income and expenditure account in the period to which they relate. Revenue grants received in advance are held as deferred income within creditors in the balance sheet and released to income and expenditure account in the relevant period.
Capital grants are credited to restricted funds when receivable and transferred to unrestricted funds when the asset is purchased. Depreciation on the fixed assets purchased with such grants is charged against unrestricted funds.
Bank interest, donations and the proceeds of fundraising events are credited as income on receipt. Lottery subscriptions are credited in the period to which they relate, with advance payments held in the balance sheet within creditors.
The bureau also benefits enormously from voluntary assistance in carrying out its activities. This voluntary contribution is not included in the financial statements but its value to the bureau has been estimated and is disclosed in the Directors' report.
## **1.5 Expenditure**
All expenditure is accounted for on an accruals basis. Direct staff costs relating to each area of service provision are attributed to the relevant activity. Other costs including general management, finance and administration, together with overhead costs, have been apportioned to the core activities on the basis of their actual or estimated share of resource utilisation, as appropriate.
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements 10 years (or life of lease if shorter) Fixtures, fittings & equipment 3 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .
## **1.7 Impairment of fixed assets**
At each reporting end date, the charitable company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
## **1.8 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
- 14 -
## **CITIZENS ADVICE SEFTON**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies**
## **(Continued)**
## **1.9 Financial instruments**
The charitable company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charitable company 's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Impairment of financial assets**_
Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.
## _**Derecognition of financial assets**_
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charitable company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
- 15 -
## **CITIZENS ADVICE SEFTON**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies**
## **(Continued)**
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charitable company ’s contractual obligations expire or are discharged or cancelled.
## **1.10 Taxation**
The charity benefits from various exemptions from taxation afforded by tax legislation and is not liable to corporation tax on income or gains falling within those exemptions.
## **1.11 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.12 Retirement benefits**
The bureau offers defined contributions to employees' personal pension funds at the rate of 7% of gross salary and these are charged to expenditure in the period to which they relate.
## **2 Critical accounting estimates and judgements**
In the application of the charitable company’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. The trustees consider that there are no key sources of estimation uncertainty.
## **3 Donations and legacies**
||**Unrestricted**|**Unrestricted**|
|---|---|---|
||**funds**|
**funds**|
||**2021**|
**2020**|
||**£**|
**£**|
|Donations and gifts|400|
952|
- 16 -
## **CITIZENS ADVICE SEFTON**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **4 Charitable activities**
|||**2021**|
**2020**|
|---|---|---|---|
|||**£**|
**£**|
||Services provided under contract|1,093,055|
1,063,906|
||Analysis by fund|||
||Unrestricted funds|303,015|
276,228|
||Restricted funds|790,040|
787,678|
|||1,093,055|
1,063,906|
|**5**|**Other trading activities**|||
|||**Unrestricted**|**Unrestricted**|
|||**funds**|
**funds**|
|||**2021**|
**2020**|
|||**£**|
**£**|
||Activities for generating funds|2,330|
2,308|
|**6**|**Investments**|||
|||**Unrestricted**|**Unrestricted**|
|||**funds**|
**funds**|
|||**2021**|
**2020**|
|||**£**|
**£**|
||Interest receivable|1,256|
193|
- 17 -
## **CITIZENS ADVICE SEFTON**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **7 Charitable activities**
|Staff costs
Depreciation and impairment
Premises costs
Telephone
Printing, postage and stationery
Training and travel
Publicity and information
Equipment, support and leases
Sundry expenses
Bank charges
Partner payments
Share of support costs (see note 8)
Share of governance costs (see note 8)
**Analysis by fund**
Unrestricted funds
Restricted funds|**2021**
**£**
700,431
17,440
52,116
13,720
8,957
6,106
11,531
9,577
8,663
177
104,356
933,074
72,063
7,611
1,012,748
222,708
790,040
1,012,748|**2020**
**£**
685,911
11,263
52,043
8,226
18,195
26,752
8,437
13,421
5,030
205
96,075
925,558
72,129
7,768
1,005,455
217,777
787,678
1,005,455|
|---|---|---|
- 18 -
## **CITIZENS ADVICE SEFTON**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **8 Support costs**
|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Staff costs
60,907
-
Depreciation
1,517
-
Premises costs
4,532
-
Telephone
1,193
-
Printing, postage and
stationery
779
-
Training and travel
531
-
Publicity and information
1,003
-
Equipment, support and
leases
833
-
Sundry expenses
753
-
Bank charges
15
-
Audit fees
-
6,088
Payroll fees
-
1,523
72,063
7,611
Analysed between
Charitable activities
72,063
7,611|**2021**
**Support**
**costs**
**Governance**
**costs**
**£**
**£**
**£**
60,907
59,644
-
1,517
979
-
4,532
4,526
-
1,193
716
-
779
1,582
-
531
2,326
-
1,003
734
-
833
1,167
-
753
437
-
15
18
-
6,088
-
6,217
1,523
-
1,551
79,674
72,129
7,768
79,674
72,129
7,768|**2020**
**£**
59,644
979
4,526
716
1,582
2,326
734
1,167
437
18
6,217
1,551
79,897
79,897|
|---|---|---|
## **9 Trustees**
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charitable company during the year (20 20 : £nil).
During the year, the trustees received a total of £nil (20 20 : £nil) in expenses from the charity.
- 19 -
## **CITIZENS ADVICE SEFTON**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **10 Employees**
## **Number of employees**
The average monthly number of employees during the year was:
|Direct charitable activities
Management and administration
**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2021**
**Number**
25
4
29
**2021**
**£**
658,818
56,296
46,224
761,338|**2020**
**Number**
25
4
29
**2020**
**£**
643,351
56,108
46,096
745,555|
|---|---|---|
There were no employees whose annual remuneration was £60,000 or more.
## **11 Tangible fixed assets**
|**Leasehold**
**improvements**
**Fixtures,**
**fittings &**
**equipment**
**£**
**£**
**Cost**
At 1 April 2020
72,302
142,568
Additions
-
19,756
At 31 March 2021
72,302
162,324
**Depreciation and impairment**
At 1 April 2020
65,779
128,951
Depreciation charged in the year
6,523
12,434
At 31 March 2021
72,302
141,385
**Carrying amount**
At 31 March 2021
-
20,939
At 31 March 2020
6,523
13,617|**Total**
**£**
214,870
19,756
234,626
194,730
18,957
213,687
20,939
20,140|
|---|---|
- 20 -
## **CITIZENS ADVICE SEFTON**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **12 Debtors**
|**Amounts falling due within one year:**
Other debtors
Prepayments and accrued income
**Creditors: amounts falling due within one year**
Other creditors
Accruals and deferred income|**2021**
**£**
850
17,911
18,761
**2021**
**£**
54,446
78,469
132,915|**2020**
**£**
850
42,674
43,524
**2020**
**£**
4,310
81,406
85,716|
|---|---|---|
## **13 Creditors: amounts falling due within one year**
## **14 Retirement benefit schemes**
## **Defined contribution schemes**
The charitable company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charitable company in an independently administered fund.
The charge to profit or loss in respect of defined contribution schemes was £46,224 (2020: £46,096).
- 21 -
## **CITIZENS ADVICE SEFTON**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **15 Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
|||**Movement in funds**|**Movement in funds**||**Movement in funds**|**Movement in funds**||
|---|---|---|---|---|---|---|---|
||**Balance at**|**Incoming**|**Resources**|**Balance at**|**Incoming**|**Resources**|**Balance at**|
||**1 April 2019**|**resources**|**expended**|**1 April 2020**|**resources**|**expended**
**31**|**March 2021**|
||**£**|**£**|**£**|**£**|**£**|**£**|**£**|
|Greater Merseyside Money Advice Project|-|185,617|(185,617)|-|210,674|(210,674)|-|
|Mersey Care|-|-|22,588|-|-|-|-|
|The Freshfield Foundation|-|158,110|(158,110)|-|171,732|(171,732)|-|
|Energy Best Deal|-|3,000|3,375|-|-|-|-|
|Best Practice Leads|-|39,000|11,451|-|39,648|(39,648)|-|
|Help to Claim Grant|-|96,234|12,380|-|106,460|(106,460)|-|
|Advice Skills Academy|-|10,380|(10,380)|-|-|-|-|
|The Better Off Project (Building Better Opportunities)|-|60,013|(60,013)|-|41,822|(41,822)|-|
|South Sefton CCG/Southport & Formby CCG|-|37,200|(37,200)|-|38,185|(38,185)|-|
|Intermediate Labour Market|-|6,469|(6,469)|-|-|-|-|
|Life Rooms|-|7,800|(7,800)|-|-|-|-|
|Enterprise Hub|-|10,250|(10,250)|-|4,825|(4,825)|-|
|Living Well Sefton|-|167,005|(167,005)|-|167,004|(167,004)|-|
|Energy Advice Programme|-|6,600|(6,600)|-|9,690|(9,690)|-|
||-|787,678|(787,678)|-|790,040|(790,040)|-|
- 22 -
## **CITIZENS ADVICE SEFTON**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
_**FOR THE YEAR ENDED 31 MARCH 2021**_
## **15 Restricted funds**
**(Continued)**
**Greater Merseyside Money Advice Project** - a restricted fund for the provision of money advice services.
**The Freshfield Foundation** - a restricted fund for the provision of welfare rights advice with Liverpool Citizens Advice Partnership.
**Best Practice Leads** - a restricted fund for the provision of a new Help to Claim service, with funds provided to set up Best Practice Leads, to gather and share information about the performance of Universal Credit and Help to Claim, build local relationships and to develop and share best practice.
**Help to Claim Grant** - a restricted fund sub-grant to set up a Universal Support: Help to Claim service. The funding allows services to be delivered including recruiting appropriate numbers of staff and volunteers for the project, training these staff and volunteers and setting up infrastructure needed for the delivery of phone and chat.
**The Better Off Project** - a restricted fund to enable people from diverse profiles support.
**South Sefton CCG/Southport & Formby CCG** - a restricted fund for an NHS standard contract.
**Enterprise Hub** - Provision of better off calculations and budgeting advice for people thinking of moving into self-employment or starting a business.
**Living Well Sefton** - a restricted fund for the provision of both; social welfare advice across Healthy Living Centres, the Living Well Centre and three GP hubs; and health and wellbeing assessments supporting people who may experience stress, anxiety or depression and who are at risk at developing mental health problems.
**Energy Advice Programme** - a restricted fund for the provision of energy advice to advise clients on energy related matters.
- 23 -
## **CITIZENS ADVICE SEFTON**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **16 Designated funds**
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
||||**Movement**||**Movement**||
|---|---|---|---|---|---|---|
||||**in funds**||**in funds**||
|||**Balance at**|**Incoming**|**Balance at**|**Incoming**|
**Balance at**|
||**1**|**April 2019**|**resources**|**1 April 2020**|**resources**|
**31 March 2021**|
|||**£**|
**£**|**£**|
**£**|
**£**|
|Designated premises fund||100,000|
-|100,000|
-|
100,000|
|||100,000|
-|100,000|
-|
100,000|
Designated premises fund - these reserves have been designated by Trustees for the purpose of securing improved Bureau premises.
## **17 Operating lease commitments**
At the reporting end date the charitable company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
|Within one year
Between two and five years
In over five years|**2021**
**£**
40,000
108,000
110,000
258,000|**2020**
**£**
16,000
28,000
-
44,000|
|---|---|---|
## **18 Related party transactions**
## **Remuneration of key management personnel**
The remuneration of key management personnel is as follows.
||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|Aggregate compensation|150,415|147,873|
There have been related party transactions in accordance with FRS 102. There were transactions between Citizens Advice Sefton and Citizens Advice in relation to insurance and information systems.
- 24 -
## **CITIZENS ADVICE SEFTON**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**19**
**Cash generated from operations**
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease in debtors
Increase in creditors
**Cash generated from operations**|**2021**
**£**
84,293
(1,256)
18,957
24,763
47,199
173,956|**2020**
**£**
61,904
(193)
12,242
22,697
69,583
166,233|
|---|---|---|
- 25 -