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2021-03-31-accounts

Registered number: 05311627 Charity number: 1107830

CITIZENS ADVICE MID MERCIA

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

CITIZENS ADVICE MID MERCIA

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the charity, its Trustees and advisers 1
Trustees' report 2 - 6
Independent auditors' report on the financial statements 7 - 9
Statement of financial activities 10
Balance sheet 11
Statement of cash flows 12
Notes to the financial statements 13 - 28

CITIZENS ADVICE MID MERCIA

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021

Trustees Mr J Lloyd, Chair
Councillor D Shepherd
Mr J Bosworth
Mr G Royall
Mrs B Gillman
Councillor J Hewlett
Mrs L James
Mr K Eldret, Vice Chair
Mr C Smith, Treasurer
Mr D Powell (appointed 4 February 2020, resigned 29 June 2020)
Company registered
number
05311627
Charity registered
number
1107830
Registered office
114 Church Street
Church Gresley
Swadlincote
Derbyshire
DE11 9NR
Senior management
team
Mr D Symcox, Chief Executive Officer
Mrs S Brown, Deputy Chief Executive
Independent auditors
Bates Weston Audit Ltd
Statutory Auditors
Chartered Accountants
The Mills
Canal Street
Derby
DE1 2RJ
Bankers
Unity Trust Bank
9 Brindley Place
Birmingham
B1 2HB
Accountants
Bates Weston LLP
Chartered Accountants
The Mills
Canal Street
Derby
DE1 2RJ

Page 1

CITIZENS ADVICE MID MERCIA

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021

Structure, Governance and Management

Governing Document

The Charity was incorporated as a company limited by guarantee on 13th December 2004 (Company Number: 05311627). The full name of the charity is Citizens Advice Mid Mercia and it was registered with the Charity Commission on 27 January 2005 (Charity Number: 1107830). The charity commenced operations on 1st April 2005 at which date the assets and liabilities of the unincorporated South Derbyshire Citizens Advice Organisation (Charity Number: 1079115) were acquired. It is governed by its Memorandum and Articles of Association.

It is sometimes referred to as Citizens Advice South Derbyshire or South Derbyshire CAB or Citizens Advice South Derbyshire and City. From 1 April 2019 it is referred to as Citizens Advice Mid Mercia (see below - Aims, Objectives, Strategies and Activities for the Year).

Organisational structure

The Charity is governed through a Trustee Board. Trustees, who are also Directors of the Company, are elected from the local community and must either reside or work South Derbyshire, Derby City, East Staffordshire, Tamworth or surrounding areas. The Trustee Board 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 Mid Mercia and for ensuring that the charity satisfies its legal and contractual obligations.

The Articles of Association provide for a minimum of three and a maximum of fifteen Trustees, being either:

a. Nominated by member organisations, or

An Election Committee, made up of Trustees, the Company Secretary and chaired by the Chair is established to oversee the elections process for Board appointments.

All Trustees whether elected, nominated or co-opted must retire from office at the sixth year of office following their election, but may be re-elected or re-appointed.

No other persons or bodies external to the charity are entitled to appoint persons to the Trustee Board. A separate process agreed by the Trustee Board is followed for the election of the Chair.

The Trustee Board meet as a minimum quarterly and has a number of working sub-committees who report back to the full Trustee Board. The Trustee Board delegates the implementation of its decisions and the day-to- day operation of the organisation to senior management, supported by senior managers. The Trustee Board is independent from management. A register of members’ interests is maintained at the registered office, and is available to the public.

The organisation is co-ordinated from its registered office/principal place of business at 114 Church Street, Church Gresley, Swadlincote, Derbyshire DE11 9NR.

Trustee Induction and training

Through a comprehensive induction to Citizens Advice Mid Mercia, which includes the provision of training courses and mentoring by established trustees, newly appointed Trustees are briefed on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision-making process, the business plan and recent financial performance of the charity. They also meet key employees and other trustees and are encouraged to attend appropriate external training events where these will facilitate the understanding of their role.

Arrangements for setting the remuneration of key management personnel

The Trustee Board has a remuneration sub-committee with the responsibility for setting and monitoring of the pay and remuneration of Personnel in key management, which is structured against industry benchmarks. The Committee presents to the Board for consideration its report and a vote is taken on whether to approve the recommendation.

Page 2

CITIZENS ADVICE MID MERCIA

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Aims, objectives and strategy

The charity’s objects are to promote any charitable purpose for the benefit of the community in Derby City, South Derbyshire, Burton Upon Trent, Uttoxeter, Tamworth and surrounding areas, by the advancement of education, the protection and preservation of health and the relief of poverty, sickness and distress.

Citizens Advice Mid Mercia aims to provide free, confidential, impartial and independent advice, peer support and information for the benefit of the local community, to exercise a responsible influence on the development of social policies and services and to ensure individuals are aware of and have access to our services and do not suffer through a lack of knowledge or an inability to express their needs effectively. We provide help around a wide range of topics through delivery of quick advice, generalist advice, casework, peer support and training To meet these aims the organisation has identified five key strategic objectives:

Activity

The principal activity of Citizens Advice Mid Mercia remained the provision of free, confidential, independent and impartial advice, information, training, peer support and counsel for members of the public.

This is provided through the registered office in Swadlincote, Derby City Centre, offices in Sinfin and Tamworth as well as 44 outreach locations.

Following the COVID-19 pandemic a priority for the year was that we could adapt services to continue to help clients and that all contracts were delivering to target. This is an aim that has been successful and even allowed our organisation to expand elements of service.

In addition to our volunteer generalist advice service the following specialist advisory and support services were provided:

(i) Outreach advice service in primary care settings - to help address health inequalities by tackling povertyrelated determinants of health.

(ii) Money Advice Service (MAS) casework - providing free quality and consistent debt management.

(iii) Wellbeing service - to help address issues facing families with the key focus being income maximisation.

(iv) Debt Advice - to help households facing unmanageable debt in Burton.

(v) Integrated Advocacy service - brings together all independent statutory and non-statutory advocacy in Derby City so that people who need advocacy support can now access it in one place.

(vi) Dig-IT - providing digital skills and IT training, advice and support centred around the needs of the individual.

(vii) Money Management Advice - advise on maximising income, managing cash flow and budgeting.

(viii) Energy - to assist with issues relating to relief from fuel poverty and advising on energy & thermal efficiency measures.

(ix) Money Sorted in D2N2, part of the Building Better Opportunities Programme - providing support and personally tailored interventions for people of working age who are experiencing financial difficulties and exclusion, who are unemployed or economically inactive.

Page 3

CITIZENS ADVICE MID MERCIA

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

(x) Self Support - providing assistance and training for anyone living in Derbyshire who has one or more longterm health conditions, or is a carer of someone living with a long-term condition.

(xi) Help to claim – providing assistance to claim universal credit.

(xii) Autism service – providing information and advice surrounding autism.

(xiii) Universal service for carers - free, confidential and impartial service dedicated solely to the holistic support of unpaid carers in Derby City.

(xiv) EU-resettlement service - practical support to vulnerable EU, EEA and Swiss citizens (and their non – EU family members) through information-giving, advice and provision of technology and assistance to help them make a scheme application

(xv) Tamworth advice project – generalist advice and debt service for the community of Tamworth

Advisory services were mainly provided through telephone or digital means due to the pandemic. Though the organisation aims to make services as accessible as possible to anyone needing help this was a necessary step to comply with government legislation and keep staff, volunteers and clients safe.

Public benefit

In considering the operation, achievements, performance and finances of the charity, the trustees are satisfied that public benefit has been provided in accordance with the Charities Act 2011 and the guidance published by the Charity Commission.

Achievements and performance

In the year 2020/21 we provided high quality services to the residents of South Derbyshire Derby City, East Staffordshire, Tamworth and surrounding areas.

A particular success has been to expand begin serving carers within Derby City and our services into Staffordshire. An achievement that has meant we have been able to bring our holistic and specialised service to carers in Derby City offering wrap around help. We are particularly proud that in the pandemic year we were able to adapt all of our services so that we could continue to offer vital help.

In 2020/21 4% of the registered adult population of South Derbyshire, Derby City, East Staffordshire and Tamworth received help. An achievement that has meant over 21,500 individuals have been helped to find a way forward.

This has meant that we have helped with over 70,000 issues and had over 1116,000 contacts with clients.

Staff, volunteers and principle funders

Our success could not have been achieved without the hard work and dedication of our staff and volunteers. The Trustees and the Senior Management Team recognise the tremendous contribution made, without which the service could not operate.

The extensive training required to achieve the standards demanded by the organisation means that not all are successful, but those that are provide valuable support throughout the organisation.

Our Volunteers are for instance involved in the administration department, as generalist Advisors or telephone Advisors and assist with our community development projects. Though the organisation still recognises 140 volunteers within our organisation, around 30 were active during the pandemic whom we are extremely appreciative of.

Page 4

CITIZENS ADVICE MID MERCIA

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

The essential work achieved would not have been possible without the help of our principle funders which include The Money Advice Service, Derbyshire County Council, Derby City Council, South Derbyshire District Council, Tamworth Borough Council, The Big Lottery, The European Union, Henry Smith Charity, Citizens Advice England and Wales, Consolidated Charities in Burton, Good Things Foundation, Multiple Sclerosis Society, Smart Energy GB, Trent and Dove Housing, Winshill Parish Council.

Need, risks and future plans

There are a series of principal risks that the management and trustees have identified, both to clients served and the organisation overall. Most prevalent amongst those is the ongoing COVID-19 pandemic. Primarily the adverse effect that this could have on the uncertainty of future funding, especially from traditional sources, vast and increasing need and depletion of partners to refer and work with. It will be the aim of the organisation to meet these challenges by ensuring that we continue to deliver the highest possible standard of service while ensuring that all staff and volunteers are safe.

To meet these challenges, the organisation plans to:

Financial review

For the year ended 31st March 2021 the charity has benefited from incoming resources of £1,879,049, of which £1,865,348 was funding for charitable activities. An in-year surplus of £230,574 resulted in an increase of reserves with the charity now reporting total funds of £727,466. Of which £436,220 are unrestricted and £291,246 are restricted. Of the unrestricted funds £273,531 has been designated for other purposes, of which £217,531 relates to fixed assets.

Citizens Advice Mid Mercia is required to ensure that free monies are available in each financial year to meet any reasonable foreseeable contingency. The organisation will maintain a projection of income for at least two years ahead and will ensure that this continues to be derived from as wide a variety of sources as possible. The Board take all reasonable steps to minimise the impact that would occur from the cessation of one or more funding streams within this period and are mindful to the structure the charity in a way to minimise the likelihood that this would present so serious a challenge to the future of the organisation that it could not be managed.

In reviewing the potential costs that could arise should a significant reduction in income be incurred, or to deal with variances in cash flow, the Trustees have determined that ‘free reserves’, in addition to ‘Designated funds’ should be maintained equal to 3 months normal operating expenditure.

Trustees Responsibility Statement

The Trustees (who are also directors of Citizens Advice Mid Mercia for the purposes of company law) are responsible for preparing the Trustees’ report and the financial statements in accordance with 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. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, the charitable company for that period. In preparing these financial statements, the Trustees are required to: select suitable accounting policies and then apply them consistently, observe the methods and principles of the Charities SORP, make judgments and accounting estimates that are

Page 5

CITIZENS ADVICE MID MERCIA

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

reasonable and prudent, state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue operation.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also reasonable for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Approved by order of the members of the board of Trustees and signed on their behalf by:

................................................

Mr J Lloyd

Date: 06/10/2021

Page 6

CITIZENS ADVICE MID MERCIA

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CITIZENS ADVICE MID MERCIA

Opinion

We have audited the financial statements of Citizens Advice Mid Mercia (the 'charity') for the year ended 31 March 2021 which comprise the Statement of financial activities, the balance sheet, the statement of cash flows and the related notes, 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:

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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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 auditors' 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.

Page 7

CITIZENS ADVICE MID MERCIA

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CITIZENS ADVICE MID MERCIA (CONTINUED)

Opinion 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 our 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' report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, 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.

Auditors' 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 auditors' 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 is detailed below:

Based on our understanding of the charity and sector in which it operates, we considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. Audit procedures performed by the engagement team included:

Page 8

CITIZENS ADVICE MID MERCIA

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CITIZENS ADVICE MID MERCIA (CONTINUED)

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 for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Wayne Thomas ACA (Senior Statutory Auditor)

for and on behalf of

Bates Weston Audit Ltd

Statutory Auditors Chartered Accountants The Mills Canal Street Derby DE1 2RJ

Date:

Page 9

CITIZENS ADVICE MID MERCIA

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021

Note
Income from:
Donations and legacies
2
Charitable activities
3
Other trading activities
4
Total income
Expenditure on:
Charitable activities
5
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2021
£
191
-
13,510
13,701
13,613
13,613
88
436,132
88
436,220		 Restricted
funds
2021
£
-
1,865,348
-
1,865,348
1,634,862
1,634,862
230,486
60,760
230,486
291,246		 Total
funds
2021
£
191
1,865,348
13,510
1,879,049
1,648,475
1,648,475
230,574
496,892
230,574
727,466		 Total
funds
2020
£
362
1,410,733
8,420
1,419,515
1,374,452
1,374,452
45,063
451,829
45,063
496,892

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 13 to 28 form part of these financial statements.

Page 10

CITIZENS ADVICE MID MERCIA (A company limited by guarantee) REGISTERED NUMBER: 05311627

BALANCE SHEET AS AT 31 MARCH 2021

Note
Fixed assets
Tangible assets
10
Current assets
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due within one
year
12
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
13
Total net assets
Charity funds
Restricted funds
14
Unrestricted funds
14
Total funds		 125,867
535,179
661,046
(189,802)		 2021
£
284,861
284,861
471,244
756,105
(28,639)
727,466
291,246
436,220
727,466		 45,407
381,790
427,197
(162,049)		 2020
£
266,061
266,061
265,148
531,209
(34,317)
496,892
60,760
436,132
496,892

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

................................................ Mr J Lloyd

Date: 06/10/2021

Page 11

CITIZENS ADVICE MID MERCIA

(A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities
Repayments of borrowing
Net cash used in financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2021
£
207,426
(48,620)
(48,620)
(5,417)
(5,417)
153,389
381,790
535,179		 2020
£
76,925
(13,449)
(13,449)
(5,170)
(5,170)
58,306
323,484
381,790

The notes on pages 13 to 28 form part of these financial statements

Page 12

CITIZENS ADVICE MID MERCIA

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. Accounting policies

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Citizens Advice Mid Mercia meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

1.2 Company status

The charity is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the charity being wound up. the liability in respect of the guarantee is limited to £1 per member of the charity.

1.3 Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Income from government and other grants is recognised when the charity has entitlement to the funds, any performance conditions attached to the grant have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. Evidence of entitlement will usually exist when the formal offer of funding is communicated in writing to the charity. However some grants will contain terms or conditions that must be met before the charity has entitlement to the resources. Income received in advance for the provision of specified services is deferred until the criteria for income recognition are met.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

1.4 Resources expended

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. The primary functional activity of the charity is the giving of free and confidential advice to the public.

Support costs include all those overhead costs of office and bureau accommodation, utility services, and other services and costs, which are in support of the activity.

Support costs also include the governance costs: costs of meeting the constitutional and statutory requirements of the charity, the audit fees and costs linked to the strategic management of the charity.

Page 13

CITIZENS ADVICE MID MERCIA

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. Accounting policies (continued)

1.5 Tangible fixed assets

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.

Depreciation is provided on the following bases:

Freehold property - 2% on cost - Fixtures and fittings 20% reducing balance - Computer equipment 33% reducing balance

1.6 Operating leases

Rentals under operating leases are charged to the Statement of financial activities incorporating income and expenditure account on a straight line basis over the lease term.

1.7 Debtors

Trade and other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid.

1.8 Cash at bank and in hand

Cash at bank and 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.

1.9 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.

1.10 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

1.11 Taxation

The charity is exempt from corporation tax on its charitable activities under section 505 of the Income and Corporation Taxes Act 1988. No provision for taxation has therefore been made in these accounts.

Page 14

CITIZENS ADVICE MID MERCIA

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. Accounting policies (continued)

1.12 Pensions

The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year.

1.13 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

2. Income from donations and legacies

Unrestricted Total Total
funds funds funds
2021 2021 2020
£ £ £
Donations and gifts 191 191 362

3. Income from charitable activities

Gateway
Community Development
Family Support
Outreach
Debt & Financial Awareness		 Restricted
funds
2021
£
362,115
600,139
255,286
191,770
456,038
1,865,348		 Total
funds
2021
£
362,115
600,139
255,286
191,770
456,038
1,865,348		 Total
funds
2020
£
210,397
622,637
33,540
127,562
416,597
1,410,733

Page 15

CITIZENS ADVICE MID MERCIA

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

3. Income from charitable activities (continued)

Funding from Government organisations can be analysed as follows:

South Derbyshire District Council
Bureau Funding
Covid-19
Digital Learning
Derby City Council
Advocacy Service
Carers
Covid-19
Derbyshire County Council
Self Support - Expert Patient Programme
Employment Advice
Family Advice Service Project
NHS Outreach
Covid-19 Councillors Awards
Autism Information and Advice
Other governmental organisations
Staffordshire Council - Outreach
Tamworth Borough Council - Outreach
Winshill Parish Council
Home Office EU Resettlement		 2021
£
59,804
13,231
4,242
77,277
177,216
255,286
25,000
457,502
50,000
5,200
33,540
81,300
2,800
64,052
236,892
5,150
111,500
5,500
36,771
158,921
930,592		 2020
£
46,227
-
-
46,227
177,216
-
-
177,216
85,382
10,400
35,000
81,300
-
-
212,082
115,417
101,120
-
-
216,537
652,062

Page 16

CITIZENS ADVICE MID MERCIA

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

4. Income from other trading activities

Income from fundraising events

Unrestricted
funds
2021
£
Room hire
8,510
Admin support
5,000
13,510		 Total
funds
2021
£
8,510
5,000
13,510		 Total
funds
2020
£
5,030
3,390
8,420

5. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted
funds
2021
£
Gateway
2,614
Community Development
4,397
Family Support
1,865
Outreach
1,402
Debt & Financial Awareness
3,335
13,613
Total 2020
16,852		 Restricted
funds
2021
£
249,572
554,533
227,262
203,861
399,634
1,634,862
1,357,600		 Total
funds
2021
£
252,186
558,930
229,127
205,263
402,969
1,648,475
1,374,452		 Total
funds
2020
£
216,787
596,357
28,441
117,226
415,641
1,374,452

Page 17

CITIZENS ADVICE MID MERCIA

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

6. Analysis of expenditure by activities

Gateway
Community Development
Family Support
Outreach
Debt & Financial Awareness
Total 2020		 Activities
undertaken
directly
2021
£
173,636
413,274
174,807
162,186
313,221
1,237,124
1,076,865		 Support
costs
2021
£
78,550
145,656
54,320
43,077
89,748
411,351
297,587		 Total
funds
2021
£
252,186
558,930
229,127
205,263
402,969
1,648,475
1,374,452		 Total
funds
2020
£
216,787
596,357
28,441
117,226
415,641
1,374,452

Analysis of support costs

Staff costs
Depreciation
Staff & volunteer costs
Office costs
Premises costs
Governance
Other costs
Total 2020		 Gateway
2021
£
35,473
4,425
1,082
20,382
5,163
4,967
7,058
78,550
59,655		 Community
Develop-
ment
2021
£
65,756
7,444
2,026
38,427
9,458
9,755
12,790
145,656
117,410		 Family
Support
2021
£
24,647
3,157
773
13,927
3,224
3,673
4,919
54,320
4,887		 Debt &
Financial
Awareness
2021
£
19,387
2,374
605
11,281
2,796
2,836
3,798
43,077
29,651

Page 18

CITIZENS ADVICE MID MERCIA

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

6. Analysis of expenditure by activities (continued)

Analysis of support costs (continued)

Outreach
2021
£
Staff costs
40,898
Depreciation
5,646
Staff & volunteer costs
1,289
Office costs
22,349
Premises costs
5,391
Governance
6,181
Other costs
7,994
89,748
Total 2020
85,984
7.
Auditors' remuneration
Fees payable to the charity's auditor for the audit of the charity's annual
accounts
8.
Staff costs
Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 Total
funds
2021
£
186,161
23,046
5,775
106,366
26,032
27,412
36,559
411,351
297,587
2021
£
6,000
2021
£
1,188,555
91,790
75,176
1,355,521		 Total
funds
2020
£
108,455
17,174
16,217
72,949
28,936
30,357
23,499
297,587
2020
£
6,000
2020
£
1,002,316
76,879
31,307
1,110,502

Page 19

CITIZENS ADVICE MID MERCIA

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

8. Staff costs (continued)

The average number of persons employed by the charity during the year was as follows:

Charitable purposes
Support and governance		 2021
52
11
63		 2020
40
12
52

No employee received remuneration amounting to more than £60,000 in either year.

The senior management team as listed on page 1 are considered to be the key management personnel; the aggregate remuneration and benefits received was £98,506 (2020: £95,842).

9. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL) .

During the year ended 31 March 2021, no Trustee expenses have been incurred (2020 - £NIL) .

10. Tangible fixed assets

Cost
At 1 April 2020
Additions
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Freehold
property
£
278,319
-
278,319
40,094
5,566
45,660
232,659
238,225		 Fixtures and
fittings
£
42,233
-
42,233
32,999
1,847
34,846
7,387
9,234		 Computer
equipment
£
57,159
48,620
105,779
38,557
22,407
60,964
44,815
18,602		 Total
£
377,711
48,620
426,331
111,650
29,820
141,470
284,861
266,061

Page 20

CITIZENS ADVICE MID MERCIA

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

11. Debtors

Due within one year
Trade debtors
Other debtors
Prepayments and accrued income		 2021
£
15,855
1,622
108,390
125,867		 2020
£
19,137
-
26,270
45,407

12. Creditors: Amounts falling due within one year

Bank loans
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
Deferred Income
Deferred income at 1 April 2020
Resources deferred during the year
Amounts released from previous periods
Deferred income at 31 March 2021		 2021
£
5,635
40,870
43,163
580
99,554
189,802
2021
£
51,094
78,034
(51,094)
78,034		 2020
£
5,374
26,800
59,505
363
70,007
162,049
2020
£
60,995
51,094
(60,995)
51,094

Deferred income relates to grant income received where funders had specified conditions on the spend period.

13. Creditors: Amounts falling due after more than one year

2021 2020
£ £
Bank loans 28,639 34,317

The bank loans are secured by a debenture charge against all present and future property and assets of the charity. The repayment period was 10 years at rates of interest 3% and 3.5% over Unity's base rate.

Page 21

CITIZENS ADVICE MID MERCIA

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

14. Statement of funds

Statement of funds - current year

Unrestricted funds
Designated funds
Fixed asset fund
Dilapidation & emergency asset
repair fund
Staff redundancy & closure
contingency fund
General funds
General Funds
Total Unrestricted funds
Restricted funds
Gateway
Community development
Family support
Outreach
Debt and financial services
Total of funds		 Balance at 1
April 2020
£
225,727
16,000
40,000
281,727
154,405
436,132
4,762
34,209
5,539
11,223
5,027
60,760
496,892		 Income
£
-
-
-
-
13,701
13,701
357,741
600,139
255,286
196,144
456,038
1,865,348
1,879,049		 Expenditure
£
(13,613)
-
-
(13,613)
-
(13,613)
(249,572)
(554,532)
(227,263)
(203,861)
(399,634)
(1,634,862)
(1,648,475)		 Transfers
in/out
£
5,417
-
-
5,417
(5,417)
-
-
-
-
-
-
-
-		 Balance at
31 March
2021
£
217,531
16,000
40,000
273,531
162,689
436,220
112,931
79,816
33,562
3,506
61,431
291,246
727,466

Page 22

CITIZENS ADVICE MID MERCIA

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

14. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
Designated funds
Fixed asset fund
Dilapidation & emergency asset
repair fund
Staff redundancy & closure
contingency fund
General funds
General Funds - all funds
Total Unrestricted funds
Restricted funds
Gateway
Community development
Family support
Outreach
Debt and financial services
Total of funds		 Balance at
1 April 2019
£
224,926
16,000
40,000
280,926
164,241
445,167
6,662
-
-
-
-
6,662
451,829		 Income
£
-
-
-
-
8,782
-
210,397
622,637
33,540
127,562
416,597
1,410,733
1,410,733		 Expenditure
£
(16,852)
-
-
(16,852)
-
(16,852)
(212,297)
(589,393)
(28,001)
(116,339)
(411,570)
(1,357,600)
(1,374,452)		 Transfers
in/out
£
17,653
-
-
17,653
(18,618)
(965)
-
965
-
-
-
965
-		 Balance at
31 March
2020
£
225,727
16,000
40,000
281,727
154,405
436,132
4,762
34,209
5,539
11,223
5,027
60,760
496,892

Page 23

CITIZENS ADVICE MID MERCIA

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

15. Fund Descriptions and Transfers

Designated funds

Designated funds are allocated out of unrestricted funds by the trustees for specific purposes. The use of such funds is at the trustees' discretion.

Fixed asset fund

The Charities SORP specifically allows funds held as tangible fixed assets for charity use to be excluded from reserves. This recognises that certain assets will be used operationally and their disposal may adversely impact on a charity's ability to deliver its aims. Clearly all the fixed assets of the charity are essential to the delivery of our charitable aims and could not be disposed of without adversely impacting our operations. The carrying value of the Fixed Assets less the secured loan balance is therefore set aside as designated funds in the balance sheet and is excluded from the free reserve (General fund) calculation.

Building dilapidation & emergency asset repair fund

Routine maintenance of the building is covered in the annual budget. However, due to the age of the property - it was built circa late 1800's, parts of the structure are tired and a fund is required for dealing with the dilapidation and to cover major emergency repairs which could impact on the security or disrupt the operation of the charity from the premises.

Staff redundancy & closure contingency fund

Were the charity have to close it would incur a number of winding up costs. Although the trustees expect the charity to continue its activities for a very long time they nevertheless believe that it is their duty to be prudent and to protect the charity's reputation by ensuring it is able to meet its financial commitments in the event of a winding up. Therefore the trustees have created a designated fund reflecting the cost of staff redundancies, professional and other costs that would arise should the charity have to close, or to operate with a much lower level of activity with significantly fewer staff. The amount of this fund will be reviewed annually to take into account any changes in circumstances, legislation and staff.

Restricted funds

Gateway

Our Gateway Assessment Service aims to improve access to the best, consistent & practical information, support & advice and where applicable to determine the most appropriate next step(s) that needs to be taken by our clients and to enable them in taking that next step(s). Our team's primary purpose is to ensure that those with lesser need(s) can be dealt with quickly and efficiently and those with greater need(s) can use this as a Gateway to receive the level and depth of help required, again quickly and efficiently. To help with aspects of this we have been supported with funds from Good Things Foundation - formerly Tinder Foundation (HMRC Digital Inclusion & Digital Health Information and Google Digital Garage); Metropolitan Housing (Energy Training) & Aperture (Debt client referrals).

Community Development

The Community Development Project is a number of funds all aiming to build a stronger and more resilient local community by promoting the knowledge, skills & tools needed so the disadvantaged can have access & take part in the issues that affect their lives.

D2N2 : part of the Building Better Opportunities Programme, supported by the Big Lottery & the European Social Fund (E.S.F). An experienced Personal Navigator provides individual support, an assessment of financial well-being and a Personal Finance Resilience Plan and by providing support with current financial circumstances, including debt, benefits, banking and any other aspects, financial capability support/training is tailored to the needs of the participant, including the option of a Money Mentor.

Self Support : a fund supported by Derbyshire County Council (Expert Patient Programme) and incorporating The Living with A Long Term Condition (LWLTC) programme. LWLTC is a free 6-week course that can help a person to take more control of their health by learning new skills and strategies to manage their condition on a daily basis.

Page 24

CITIZENS ADVICE MID MERCIA

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Innovation service : National project to test innovative ideas that will enhance service and lives for people across the UK

Family Support

Our Family Support Project is designed to offer targeted support and advice to families who often need more than generalist advice.

Universal service for carers : free, confidential and impartial service dedicated solely to the holistic support of unpaid carers in Derby City.

Outreach

The purpose of our Outreach Project, including Outreach Contracts, is to establish advice sessions in the heart of the community. The majority of the services we offer are now deliverables at venues throughout South Derbyshire, which means that our clients are able to access our services as soon as possible, in a venue and at a time that is most convenient for them.

GP Advisory Service : a project funded by 'Derbyshire County Council Public Health' and designed to help address health inequalities by tackling poverty-related determinants of health. Clients using this service have advice needs related to illness or disability (such as welfare benefit enquiries or debt problems).

EU-resettlement service : practical support to vulnerable EU, EEA and Swiss citizens (and their non – EU family members) through information-giving, advice and provision of technology and assistance to help them make a scheme application.

Debt and Financial services

Casework : providing free quality and consistent debt management.

Transfers between funds

Transfers between the fixed asset fund and general and restricted funds represents capital additions within the year and movement in the capital loan balance.

16. Summary of funds

Summary of funds - current year

Designated funds
General funds
Restricted funds		 Balance at 1
April 2020
£
281,727
154,405
60,760
496,892		 Income
£
-
13,701
1,865,348
1,879,049		 Expenditure
£
(13,613)
-
(1,634,862)
(1,648,475)		 Transfers
in/out
£
5,417
(5,417)
-
-		 Balance at
31 March
2021
£
273,531
162,689
291,246
727,466

Page 25

CITIZENS ADVICE MID MERCIA

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

16. Summary of funds (continued)

Summary of funds - prior year

Designated funds
General funds
Restricted funds		 Balance at
1 April 2019
£
280,926
164,241
6,662
451,829		 Income
£
-
8,782
1,410,733
1,419,515		 Expenditure
£
(16,852)
-
(1,357,600)
(1,374,452)		 Transfers
in/out
£
17,653
(18,618)
965
-		 Balance at
31 March
2020
£
281,727
154,405
60,760
496,892

17. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2021
£
Tangible fixed assets
251,805
Current assets
218,695
Creditors due within one year
(5,641)
Creditors due in more than one year
(28,639)
Total
436,220
Analysis of net assets between funds - prior year
Unrestricted
funds
2020
£
Tangible fixed assets
265,418
Current assets
210,407
Creditors due within one year
(5,376)
Creditors due in more than one year
(34,317)
Total
436,132		 Restricted
funds
2021
£
33,056
442,351
(184,161)
-
291,246
Restricted
funds
2020
£
643
216,790
(156,673)
-
60,760		 Total
funds
2021
£
284,861
661,046
(189,802)
(28,639)
727,466
Total
funds
2020
£
266,061
427,197
(162,049)
(34,317)
496,892

Page 26

CITIZENS ADVICE MID MERCIA

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

18. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash provided by operating activities
19.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents		 2021
£
230,574
29,820
(80,869)
32,274
211,799
2021
£
535,179
535,179		 2020
£
45,063
17,174
7,134
14,054
83,425
2020
£
381,790
381,790

20. Analysis of changes in net debt

Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year		 At 1 April
2020
£
381,790
(5,737)
(34,317)
341,736		 Cash flows
£
153,389
(478)
5,678
158,589		 At 31 March
2021
£
535,179
(6,215)
(28,639)
500,325

21. Related party transactions

Owing to the composition of the Trustees Board being drawn from local Council's, expected transactions such as business rates are not as a result of their appointments. All transactions involving such organisations are conducted at arm's length.

Page 27

CITIZENS ADVICE MID MERCIA

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

22. Operating lease commitments

At 31 March 2021 the charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 2021
£
17,531
33,113
50,644		 2020
£
1,668
2,427
4,095

Page 28