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 2025
CITIZENS ADVICE MID MERCIA (A company limited by guarantee) CONTENTS Page Reference and administrative details of the charity, its Trustees and advisers Trustees. report Independent auditorfs report on the financial statements Statement of financial activities 10 Balance sheet 11 Statement of cash flows 12 Notes to the financial statements 13-29
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 2025 Trustees J Lloyd, Chair K Eldret. Vice Chair J Bosworth, Treasurer G Royall Councillor J Hewlett C Smith S McKendrick A Armstrong (resigned 12 September 2025) l G Blackett J McKiernan A Mackenzie J Harris B Katana (appointed 8 May 2025) Company registered number 05311627 Charity registered number 1107830 Registered office 114 Church Street Church Gresley Swadlincote Derbyshire DE119NR Senior management team Mr D Symcox, Chief Executive Officer & Company Secretary Mrs S Brown, Chief Operating OffIr Independent auditor Bates Weston Audit Ltd Statutory Auditors Chartered Accountants The Mills Canal Street Derby DE12RJ Bankers Unity Trust Bank 9 Brindley Pla Birmingham B12HB Accountants Bates Weston LLP Chartered Accountants The Mills Canal Street Derby DE12RJ Page 1
CITIZENS ADVICE MID MERCIA (A company limited by guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2025 Structure Governance and Mana ement 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 govemed by its Memorandum and Articles of Association. Previously the organisation was referred to as Citizens Advi 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). Or anisational structure The Charity is govemed 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 that are elected by the trustee board. An Election Committee, made up of Trustees, the Company Secretary and chaired by the Vice Chair is established to oversee the elections prOsS for Board appointments. All Trustees whether elected, nominated or co-opted must retire from office at the third year of office following their election, but may be re-elected or re-appointed. No other persons or bodies extemal 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 the chief executive. 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 officelprincipal place of business at 114 Church Street, Church Gresley, Swadlincote, Derbyshire DE11 9NR, though has offices across Derby City, East Staffordshire and Tamworth. 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 prosS, 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. Page 2
CITIZENS ADVICE MID MERCIA (A company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 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. Aims ob'ectives and strate The charity's objects are to promote any charitable purpose for the benefit of the community in Derby City, South Derbyshire, East Staffordshire, Tamworth and surrounding areas, by the advancement of education, the protection and preseatIon of health and the relief of poverty. sickness and distress. Citizens Advice Mid Mercia is a multi-discipled organisation that aims to provide free, confidential, impartial and independent information, advice, peer support. health and wellbeing support as well as training for the benefit of the local community, to exercise a responsible Influen on the development of social policies and services and to ensure individuals are aware of and have access to our seNices 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 four key strategic objectives: We'll deliver an effective and accessible service We'll build strategic partnerships and be influential We'll become even more sustainable We'll embrace our core values Activit The organisation has continued to adapt, develop and expand services to continue to help clients in the best way possible, in the most efficient way possible and through a model that is best to help our clients find a way foNard. This is an aim that has been successful and even allowed our organisation to expand the number of people that we have supported. In addition to our volunteer generalist advice service the following advice, specialist advice. health and wellbeing support services were provided: 1. Outreach advice service in primary care settings - to help address health inequalities by tackling poverty- related determinants of health. 2. Money Advice Service (MAS) casework- providing free quality and consistent debt management. 3. Wellbeing service - to help address issues facing families with the key focus being income maximisation. 4. Debt Advice - to help households facing unmanageable debt in Burton. 5. Integrated Advocacy service brings together all independent statutory and non-ststutory advocacy in Derby City so that people who need advocacy support can now access it in one place. 6. IT training- providing digital skills and IT training. advice and support centred around the needs of the individual. 7. Money Management Advice- advise on maximising income, managing cash flow and budgeting 8. Community of practise to understand the current ServIS and gaps in delivery for autistic people and create seIS to fill those gaps. 9. Help to claim - providing assistance to claim universal credit. 10. Autism service - providing infomiation and advice surrounding autism 11. Universal service for carers - free. confidential and impartial service dedicated solely to the holistic support Page 3
CITIZENS ADVICE MID MERCIA (A company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 of unpaid carers in Derby City 12. Tamworth advice project- generalist advice and debt service for the community of Tamworth. 13. Derbyshire Community Health Trust project- generalist advice and debt service for DCHS clients. 14. Help through hardship service advice seNice funded by the Trussell Trust supporting those accessing food banks. 15. Midlands Partnership Foundation Trust- Financial inclusion advice for MPFT clients. 16. Generalist advice in South Derbyshire Advice services funded by South Derbyshire District Council to support residents. 17. Energy SeiceS - various energy specific programmes to help people through the energy crisis 18. Low level support seN1- To ensure people are able to remain independent in their own homes 19. GAIN - Advice and health service to residents of Birmingham 20. Short term intervention SeiCe - a preventative advice, care and support service for people with learning disability and autistic people at imminent risk. Public benefit In considering the operation, achievements. performan 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 erformance 2024125 In the year 2024125 we provided high quality serViS to the residents of South Derbyshire Derby City, East Staffordshire, Tamworth as well as areas in the East and West Midlands and beyond. A particular success has been to establish a low level service aimed at ensuring as many people remain independent in their own home as possible. A service that allows a preventative support mechanism for those who otherwise could be at risk of losing their independence. Another success has been to expand our services into Bimiingham. specially our GAIN service aimed at providing advice and well-being services to residents. In 2024125, we supported approximately 35.000 people find a way forward which is the most in the history of our organisation in a single year. Staff volunteers and rinci le 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. To be an adviser, specialist, health professional or front line worker within the organisation requires extensive training, dedication and commitment to help those in our community. We are therefore so grateful for the valuable support our trained staff and volunteers provide throughout the organisation. Our Volunteers are for Instan involved in the administration department, as generalist Advisors or telephone Advisors and assist with our community development projects. 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, Birmingham City Council, The Big Lottery, Citizens Advice England and Wales, Midlands Partnership Foundation Trust. The Trussell Trust. Derbyshire Community Health Trust, Good Things Foundation, Multiple Sclerosis Society, Smart Energy GB. Winshill Parish Council. Marches, Derby and Derbyshire ICB. and Energy Redress. Page 4
CITIZENS ADVICE MID MERCIA (A company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Need risks and future lans 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 cost of living crisis and continued difficult scenarios faced by many of our clients. Primarily the adverse effect that this could have on the clients that we serve and vast increase in need for our seNices and uncertainty of future funding, especially from traditional sources. 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, sustaining and developing areas of funding to increase provision while ensuring that all staff and volunteers are supported. To meet these challenges, the organisation plans to: Continue to implement and invest in digital training and innovations programme for our people Improve the quality of advice through extemal audit Further invest in a dedicated funding team to expand and diversify services Develop strong connections with remaining extemal partners Focus on the effects of the cost of living crisis Focus on supporting those living with neurodiverse. leaming disabilities and mental health issues Focus more heavily within health and wellbeing based services Maintain the quality of provision across all services Diversify our funding stream further for greater sustainability Deliver face to face provision where needed for clients Grow as an organisation to meet demand Financial review For the year ended 31st March 2025 the charity has benefitted from incoming resources of £5,085,640 of which £5,060,149 was funding for charitable activities. An in-year surplus of £219,904 resulted in an increase of reserves with the charity now reporting total funds of £1,317,843 of which £755.131 are unrestricted and £562,712 are restricted. Of the unrestricted funds, £371.859 has been designated for other purposes, of which £210,392 relate 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 SSatIon of one or more funding streams within this period and are mindful to 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 nomial operating expenditure. Our aims in the future are to ment our organisation as a lead for other partners to allow a greater collaboration that will support even more clients. We also aim to expand our health based services and increase provision overall regionally and nationally. Page 5
CITIZENS ADVICE MID MERCIA (A company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Trustees Res onsibilit Statement The Trustees (who are also directors of Citizens Advi 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 Practise). 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 judgements and accounting 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; prepare the financial statements on the going cOnM 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 infonnation to auditors Each of the persons who are Trustees at the time of when this Trustees. report is approved has confirmed that.. So far as that Trustee is aware. there is no relevant audit information of which the charitable company's auditors are unaware. Trustees have taken all steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable companys auditors are aware of that information. Approved bv order of the members of the board of Trustees and signed on their behalf by: J Lloyd (Chair of Trustees) Date.. 2711012025 Page 6
CITIZENS ADVICE MID MERCIA (A company limited by guarantee) INDEPENDENT AUDITOR'S 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 2025 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: give a true and fair view of the state of the charitable company's affairs as at 31 March 2025 and of its incoming resources and application of resources. including its income and expenditure for the year then have been property prepared in accordan with United Kingdom Generally ACpted Accounting Practice., and have been prepared in accordance viith the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with Intemational 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 United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordan 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. 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 perfomied, 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 INrfelve 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 auditorfs 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, V 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, V 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 AUDITOR'S 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: the information given in the Trustees, report for the financial year for which the financial statements are prepared is consistent with the financial statements. the Trustees, report has been prepared in accordan with applicable legal requirements. 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- adequate accounting records have not been kept. or retums adequate for our audit have not been received from branches not visited by us. or the financial statements are not in agreement with the accounting records and returns" or certain disclosures of Trustees, remuneration specified by law are not made., or we have not received all the infomiation 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, report and from the requirement to prepare a Strategic report. 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 concem, 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 altemative but to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assuran about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error. and to issue an auditorfs 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 prOdureS perfomied by the engagement team included: Page 8
CITIZENS ADVICE MID MERCIA (A company limited by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CITIZENS ADVICE MID MERCIA (CONTINUED) Enquiry of management around actual and potential litigation and claims. Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; Performing audit work over the risk of management override of controls. including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. Because of the inherent limitations of an audit, there is a risk that we wll 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.o .ukJauditorsres nsibilities. This description forms part of our auditor's report. Use of our report This report is made solely to the charitable CoMpanS members. as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work. for this report. or for the opinions we have formed. Wayne Thomas FCA {Senior Statutory Auditor) for and on behalf of Bates Weston Audit Ltd Statutory Auditors Chartered Accountants The Mills Canal Street Derby DE12RJ 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 2025 Unrestricted funds 2025 Restricted funds 2025 Total funds 2025 Total funds 2024 Note Income from: Donations and legacies Charitable activities 1,055 5,058,149 1,055 5,060,149 24.436 938 2,000 24,436 3, 176,874 9,828 1,502 Investments Other income Total income 26,436 5,059,204 5,085,640 3, 189, 142 Expenditure on: Charitable activities 5,567 4,860,169 4,865,736 3, 025,458 Total expenditure 5,567 4,860,169 4,865,736 3, 025,458 Net movement in funds 20,869 199,035 219.904 163,684 Reconciliation of funds: Total funds brought forward Net movement in funds 734,262 20,869 363,677 199,035 1,097,939 219,904 934,255 163,684 Total funds carried forward 755,131 562,712 1,317,843 1,097,939 The Statement of financial activities includes all gains and losses recognised in the year. The notes on pages 13 to 29 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 2025 2025 2024 Note Fixed assets Tangible assets 210.393 215,959 210,393 215,959 Current assets Debtors 12 386,000 177,276 973,364 306, 754 170,000 821,634 Investments Cash at bank and in hand 13 1,536,640 7,298,388 Current liabilities Creditors.. amounts falling due within one year 14 (429,190) (416,408) Net current assets 1,107,450 881,980 Total assets less current liabilities 1.317,843 1,097,939 Total net assets 1,317,843 1,097,939 Charity funds Restricted funds 15 562,712 755.131 363,677 734,262 Unrestricted funds 15 Total funds 1,317,843 1,097,939 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.. J Lloyd (Chair of Trustees) Date: 2711012025 Page11
CITIZENS ADVICE MID MERCIA (A company limited by guarantee) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025 2025 2024 Cash flows from operating activities Net cash used in operating activities 134.571 203,209 Cash flows from investing activities Dividends, interests and rents from investments 24.435 9,828 Net cash provided by investing activities 24,435 9,828 Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year 159.006 213.037 991.634 778,597 Cash and cash equivalents at the end of the year 1,150,640 991,634 The notes on pages 13 to 29 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 2025 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 accordan with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). 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 otheNise 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 govemment 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. Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. 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 beeen 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. Page 13
CITIZENS ADVICE MID MERCIA (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies {continued) 1.4 Resources expended (continued) Support costs include all those overhead costs of Offi and bureau accommodation, utility services, and other services and costs, which are in support of the activity. Support costs also include the g0Veman 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. 1.5 Tangible fixed assets Tangible fixed assets costing £1.500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. 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 basis: Freehold property 2% on cost 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-temi 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. Page 14
CITIZENS ADVICE MID MERCIA (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies {continued) 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. 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. Income from donations and legacies Unrestricted Restricted funds funds 2025 2025 Total funds 2025 Total funds 2024 Donations and gifts 1,055 1,055 938 Total 2024 938 938 Page 15
CITIZENS ADVICE MID MERCIA (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Income from charitable activities Unrestricted Restricted funds funds 2025 2025 Total funds 2025 Total funds 2024 Gateway Community Development Family Support Outreach Debt & Financial Awareness 1.439,595 1.800,048 499,496 125,059 1.193,951 1,439,595 1,802,048 499.496 125,059 1,193,951 1, 038,035 1,015,741 245, 786 226,283 651,029 2,000 2.000 5.058,149 5,060,149 3, 176,874 Total 2024 3, 176,874 3, 176,874 Funding from Government organisations can be analysed as follows: 2025 2024 South Derbyshire District Council Bureau Funding Capital Grant Funding 65,280 63,463 15,740 65,280 79,203 Derby City Council Advocacy Service Carers 238.716 261,786 177,216 245, 786 500.502 423,002 Derbyshire County Council Employment Advice NHS Outreach 10,400 139,366 95.172 10,400 127,715 97,842 12,600 55,586 Autism Information and Advi Food bank services Wellbeing and community wellness Low level support 7.350 892,315 1,144,603 304, 143 Page 16
CITIZENS ADVICE MID MERCIA (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Other governmental organisations Tamworth Borough Council - Outreach Winshill Parish Council Birmingham City Council Bolsover District Council East Staffs Borough Council - COLA Nottingham County Council - Autism Services 240.791 5,500 133.333 17,480 49,000 90,202 178,928 5,500 29,940 12,250 98,980 536.306 325,598 2,246,691 1, 131,946 Investment income Unrestricted funds 2025 Total funds 2025 Total funds 2024 Bank interest 24,436 24,436 9,828 Other incoming resources Restricted funds 2025 Total funds 2025 Total funds 2024 Non-trade income 1,502 Page 17
CITIZENS ADVICE MID MERCIA (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Analysis of expenditure on charitable activities Summary by fund type Unrestricted Restricted funds funds 2025 2025 Total 2025 Total 2024 Gateway Community Development Family Support Outreach 1,060 1,992 552 1,356,355 1,708,160 478,898 131,924 1.184,832 1,357,415 1,710,152 479,450 132,621 1,186,098 1,010,210 981,421 240,737 206, 735 586,355 697 Debt & Financial Awareness 1.266 5,567 4,860,169 4,865,736 3, 025,458 Total 2024 45,567 2,979,891 3,025,458 Analysis of expenditure by activities Activities underiaken directly 2025 Support costs 2025 Total funds 2025 Total funds 2024 Gateway Community Development Family Support Outreach Debt & Financial Awareness 1,065,011 1,516,488 377,636 116,039 971.181 292,404 193,664 101,814 16,582 214,917 1,357,415 1,710,152 479,450 132.621 1,186,098 1,010,210 981,421 240, 737 206, 735 586,355 4,046,355 819,381 4,865,736 3, 025,458 Total 2024 2,362,261 663. 197 3,025,458 Page 18
CITIZENS ADVICE MID MERCIA (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Analysis of expenditure by activities (continued) Analysis of support costs Community Develop- ment 2025 Family Support 2025 Gateway 2025 Outreach 2025 Staff costs Depreciation Staff & volunteer costs 129,861 1,060 7,620 63,651 60,531 9,105 20.576 83,032 1,992 4,943 46,982 31,252 11,901 13,562 47,158 552 2,484 21,817 15,824 5,801 8,178 5,878 697 414 Office costs 4,669 2,432 1,171 1,321 Premises costs Governance other costs 292,404 193,664 101,814 16,582 Total 2024 257,244 195,938 66,459 39,900 Debt & Financial Awareness 2025 Total funds 2025 Total funds 2024 Staff costs Depreciation Staff & volunteer costs 95,221 1,266 5,612 53,012 33,020 13,155 13,631 361.150 5,567 21.073 190,131 143.059 41,133 57.268 320,928 5,567 21,988 153, 114 82,307 43,033 36,260 Office costs Premises costs Govemance Other costs 214,917 819.381 663,197 Total 2024 103,656 663, 197 Page 19
CITIZENS ADVICE MID MERCIA (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Auditorfs remuneration 2025 2024 Fees payable to the charity's auditor for the audit of the charity's annual accounts 6,825 6,500 Staff costs 2025 2024 Wages and salaries Social security costs Contribution to defined contribution pension schemes 2,822,618 246,847 199.674 1,953,966 160,612 132, 168 3,269,139 2,246,746 The average number of persons employed by the charity during the year was as follows.. 2025 2024 Charitable purposes Support and governan 103 10 78 113 87 The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was.. 2025 No. 2024 No. In the band £60,001- £70,000 In the band £70,001- £80.000 10. Trustees. remuneration and expenses During the year, no Trustees reiVed any remuneration or other benefits (2024 - £NIL). During the year ended 31 March 2025, expenses totaling £389 were reimbursed or paid directly to 1 Trustee (2024 - £3,629) Page 20
CITIZENS ADVICE MID MERCIA (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 11. Tangible fixed assets Freehold property Cost At 1 April 2024 278,319 At 31 March 2025 278.319 Depreciation At 1 April 2024 Charge for the year 62,359 5.567 At 31 March 2025 67,926 Net book value At 31 March 2025 210.393 At 31 March 2024 215,960 12. Debtors 2025 2024 Due within one year Trade debtors 200.900 49,554 135.546 153,423 7,579 145,752 Other debtors Prepayments and accrued income 386,000 306, 754 13. Current asset investments 2025 2024 Short tenn investments 177,276 170,000 Page 21
CITIZENS ADVICE MID MERCIA (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 14. Creditors: Amounts falling due within one year 2025 2024 Trade creditors 63,177 156,817 43,499 165,697 80, 788 45,992 Other taxation and social security other creditors Accruals and deferred income 289,628 429.190 416,408 2025 2024 Deferred Income Deferred income at 1 April 2024 Resources deferred during the year Amounts released from previous periods 225.785 197,877 111,652 225, 785 (216,393) (197,877) 121,044 225, 785 Deferred income relates to grant income received where funders had specified conditions on the spend period. Page 22
CITIZENS ADVICE MID MERCIA (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 15. Statement of funds Statement of funds - current year Balance at 31 March 2025 Balance at 1 April 2024 Transfers inlout Income Expenditure Unrestricted funds Designated funds Fixed asset fund Dilapidation & emergency asset repair fund Staff redundancy & closure contingency fund Development fund 215,959 (5,567) 210,392 16,000 16.000 130,000 40,000 130,000 15.467 (24,533) 401,959 (5,567) (24,533) 371.859 General funds General funds 332,303 26,436 24.533 383.272 Total Unrestricted funds 734,262 26,436 (5,567) 755,131 Restricted funds Gateway Community development Family support Outreach Debt and financial services 157,586 30,441 3,687 44,428 127,535 1,440,254 (1,345,451) 1.800,444 (1.719,065) 499,496 (478,898) 125,059 (131,923) 1,193,951 (1,184,832) 252,389 111.820 24,285 37.564 136,654 363,677 5,059,204 {4,860,169) 562,712 Total of funds 1,097,939 5,085,640 {4,865,736) 1,317,843 Page 23
CITIZENS ADVICE MID MERCIA (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 15. Statement of funds (continued) Statement of funds - prior year As restated Balance at 31 March 2023 Balance at l Apn'l 2023 Transfers in/out Income Expenditure Unrestricted funds Designated funds Fixed asset fund 237,616 (5.567) (16,090) 215,959 Dilapidation & emergency asset repair fund Staff redundancy & closure contingency fund Development fund 16,000 16,000 77,000 80,000 53,000 130,000 40,000 (40,000) 410,616 (45,567) 36,910 401,959 General funds General funds 358,447 10,766 (36,910) 332,303 Total Unrestricted funds 769,063 10,766 (45,567) 734,262 Restricted funds Gateway Community development Family support Outreach 114,580 1.038,035 (19,866) 1,017,243 (5, 143) 245, 786 21,889 226,283 53, 732 651,029 (995,029) (966,936) (236,956) (203, 744) (577,226) 157,586 30,441 3,687 44,428 127,535 Debt and financial services 165,192 3. 178,376 (2,979,891) 363,677 Total of funds 934, 255 3, 189, 142 (3,025,458) 1,097,939 Page 24
CITIZENS ADVICE MID MERCIA (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 16. 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 balan sheet and is excluded from the free reserve (General fund) calculation. Buildin dila idation & emer enc asset re air 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 redundanc & closure contin enc 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. Develo ment fund Provision of an organisational priority to recruit. train and deploy volunteer generalist advisers to support the community that we serve. Restricted funds Gatewa Our Gateway Assessment Service aims to improve access to the best, consistent & practical information, support & advice and where applicable to detemiine 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). Trussell Trust (Food Bank Services) & Aperture (Debt client referrals). Communit Develo ment 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 Page 25
CITIZENS ADVICE MID MERCIA (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Social Fund (E.S.F). An experienced Personal Navigator provides individual support, an assessment of financial well-being and a Personal Finan Resilien Plan and by providing support with current financial circumstances, including debt, benefits, banking and any other aspects, financial capability supportltraining 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. Innovation service: National project to test innovative ideas that will enhance seNice and lives for people across the UK Famil Su ort 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 seNices 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 detemiinants 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. Trussell Trust: Citizens Advice, in partnership with The Trussell Trust. provides a freephone helpline for people who cannot afford food and help them obtain an e-voucher for a local food parcel. It also provides information & advice on the issues that are causing financial hardship in order to move the client forward. Debt and Financial services Casework: providing free quality and consistent debt management. Transfers between funds The transfer from the development fund to general funds more accurately represents expected costs. The transfer between the fixed asset fund and the general fund aligns the carrying value with the calculation outlined above. The transfer beeen the general fund and the staff redundancy & closure contingency fund is made to reflect the potential costs based upon circumstances, legislation and staff. Page 26
CITIZENS ADVICE MID MERCIA (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 17. Summary of funds Summary of funds - current year Balance at 31 March 2025 Balance at 1 April 2024 Transfers inlout Income Expenditure Designated funds General funds Restricted funds 401,959 332,303 363,677 (5,567) (24,533) 24.533 371,859 383.272 562,712 26,436 5,059,204 {4,860,169) 1,097,939 5,085,640 {4,865,736) 1,317,843 Summary of funds - prior year As restated Balance at 31 March 2023 Balance at l Apn'l 2023 Transfers in/out Income Expenditure Designated funds General funds Restricted funds 410,676 358,447 765,192 (45,567) 36,910 (36,910) 401,959 332,303 363,677 10,766 3, 178,376 (2,979,891) 934,255 3, 189, 142 (3,025.458) 1,097,939 18. Analysis of net assets between funds Analysis of net assets between funds - current year Unrestricted Restricted funds funds 2025 2025 Total funds 2025 Tangible fixed assets Current assets 210,393 210,393 824,164 712,476 1,536,640 (308,146) {121,044) {429,190) 28,720 (28,720) Creditors due within one year Provisions for liabilities and charges Total 755,131 562,712 1,317,843 Page 27
CITIZENS ADVICE MID MERCIA (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 18. Analysis of net assets between funds (continued) Analysis of net assets between funds - prior year Unrestricted funds 2024 Restricted funds 2024 Total funds 2024 Tangible fixed assets Current assets Creditors due within one year 215,959 708,926 (190,623) 215,959 1,298,388 (416,408) 589,462 (225, 785) Total 734,262 363,677 7,097,939 19. Reconciliation of net movement in funds to net cash flow from operating activities 2025 2024 Net income for the year (as per Statement of Financial Activities) 219,904 163,684 Adjustments for: Depreciation charges Dividends. interests and rents from investments (Increase)Idecrease in debtors Increasel(decrease) in creditors 5,567 (24,436) (79,246} 12,782 5,567 (9,828) (62,948) 106, 734 Net cash provided by operating activities 134.571 203,209 20. Analysis of cash and cash equivalents 2025 2024 Cash in hand Short term investments 973.364 177,276 821,634 170,000 Total cash and cash equivalents 1,150,640 991,634 Page 28
CITIZENS ADVICE MID MERCIA (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 21. Analysis of changes in net debt At 1 April 2024 Cash flows At 31 March 2025 Cash at bank and in hand Liquid investments 821.634 170,000 151.730 7,276 973.364 177,276 991,634 159,006 1,150,640 22. 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 ann's length. 23. Operating lease commitments At 31 March 2025 the charity had commitments to make future minimum lease payments under non- cancellable operating leases as follows: 2025 2024 Not later than 1 year Later than 1 year and not later than 5 years 33,734 44,979 11,872 78,713 11,872 Page 29