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2022-03-31-accounts

Charity registration number 1109872

Company registration number 05453262 (England and Wales)

WATFORD CITIZENS ADVICE BUREAU ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

WATFORD CITIZENS ADVICE BUREAU

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr Abayomi Akisanya Elected Members Mr Laurence Blake Mr Richard Boulton (appointed 06 April 2021) Dr Pui Wah Carter Ms Meera Lachani (resigned 21 March 2022) Ms Leena Nagrecha Ms Danielle Sherman (appointed 06 April 2021) Mr Farrukh Siddiqi Mr Anthony Swabe (appointed 06 April 2021) Co-opted Members Cllr Kennedy Rodrigues Representing Watford Borough Council (appointed 10 August 2022) Cllr Jennifer Pattinson Representing Watford Borough Council (appointed 10 August 2022) Mr George Derbyshire Representing Watford Borough Council (resigned 04 August 2022) Cllr Stephen Johnson Representing Watford Borough Council (appointed 26 October 2021, resigned 04 August 2022) Non trustee representative members Mr Jamie Normanton Representing volunteers Ms Kalpna Budhdeo Representing paid staff

The representative members have observer status at Trustee Board meetings.

Honorary Officers Chairman Mr Farrukh Siddiqi Treasurer Dr Pui Wah Carter Company Secretary Ms Leena Nagrecha Principal Staff Chief Officer Ms Emma Burgham (appointed 17 May 2021) Mr Salim Bakirci (resigned 09 April 2021) Advice Service Manager Ms Catherine Markowski Ms Kalpna Budhdeo Charity number 1109872 Company number 05453262 Principal address St Mary's Churchyard High Street Watford Hertfordshire WD17 2BE

WATFORD CITIZENS ADVICE BUREAU

LEGAL AND ADMINISTRATIVE INFORMATION

Registered office St Mary's Churchyard High Street Watford Hertfordshire WD17 2BE Independent examiner Gary Howard FCA Howard Wilson Chartered Accountants 36 Crown Rise Watford Hertfordshire WD25 0NE Bankers CAF Bank 25 Kings Hill Avenue West Malling Kent ME19 4JQ Virgin Money Jubilee House Gosforth Newcastle Upon Tyne NE3 4PL United Trust Bank Limited One Ropemaker Street London EC2Y 9AW

WATFORD CITIZENS ADVICE BUREAU

CONTENTS

Page
Trustees' report 1 - 6
Statement of trustees' responsibilities 7
Independent examiner's report 8
Statement of financial activities 9 - 10
Balance sheet 11 - 12
Notes to the financial statements 13 - 26

WATFORD CITIZENS ADVICE BUREAU

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2022

The Trustee Board of Watford Citizens Advice Bureau (“the Bureau” or “the Company”) presents its report and accounts for the year ended 31 March 2022.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

Objectives and activities

Watford Citizens Advice Bureau is a local charity funded by local grants and donations. We are also a member of Citizens Advice UK and share its key aims:

We value diversity and promote equality in all we do. We seek to challenge discrimination, both within our own organisation and when, in the course of our work, we encounter it in the communities we serve. In all our work we seek to act in accordance with Citizens Advice core values, which comprise:

The objectives of the Bureau are to promote any charitable purposes for the benefit of principally the community in the Borough of Watford by the advancement of education, the protection and preservation of health and the relief of poverty, sickness and distress.

The Trustees have given consideration to the guidance issued by the Charity Commission in respect of public

benefit in respect of all its activities.

The Bureau’s service is independent and it provides free, confidential and impartial advice to everybody regardless of race, gender, disability, sexual orientation, religion, age or nationality. The Bureau recognises the positive value of diversity, promotes equality and challenges discrimination.

The strategic objectives for the three-year period of the Business Development Plan are:

WATFORD CITIZENS ADVICE BUREAU

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

The activities of the Bureau continue to be advising the individual client and engaging in research and campaigns work. By advising clients, the Bureau ensures that individuals do not suffer through a lack of knowledge of their rights and responsibilities, or of the services available to them, or through an inability to express their needs effectively. The Bureau exercises a responsible influence on the development of research and campaigns, both locally and nationally.

The main area of the charitable activity is providing advice. Generalist advice is offered by volunteer and paid staff. Paid caseworkers provide specialist advice on debt and benefits issues. Along with other Hertfordshire Citizens Advice Services, we have access to a British Sign Language (BSL) adviser funded via Hertfordshire County Council. The Bureau is a referral agency for the Free Representation Unit whereby solicitors represent clients at Tribunals and court hearings on a pro bono basis.

Face-to-face advice is provided to clients at the Bureau’s Watford office situated in the Advice Centre. Telephone advice is provided by advisors in partnership with nine other Hertfordshire Citizens Advice Services. Watford residents can access information on the Citizens Advice website or contact Watford Citizens Advice via email. There is free internet access for clients from computers in the reception area, providing access to the Citizens Advice website, other key advice sites and local information.

The Bureau is involved in the community, partnership working and local events. Our volunteers form the backbone of the advice service and administration work at the Bureau and volunteer Trustees are responsible for governing the organisation. Generalist advisers, gateway assessors, administrative workers, receptionists, and project workers make up the bulk of the Bureau’s workforce.

Major Risks

The Bureau maintains a risk register which is agreed by the Trustee Board. The Trustee Board assesses the major risks to which the Bureau may be exposed. These include operational, financial, regulatory, external and governance risks. The Trustees recognise that any major risks to which the Bureau is exposed need to be reviewed and systems put in place to mitigate those risks. To that end, the risk register is continually monitored by the Chief Officer to manage the risks and to ensure that appropriate action plans are in place to mitigate its key risks.

The Bureau has a balanced approach to risk management and adopts an active process to the mitigation of risk. The most significant risks faced by the Bureau have been identified by the Trustee Board and relate to the following:

As part of its risk management policy the Board has established three sub-committees – Governance, Finance & Risk and Remuneration - which meet regularly and report to the Board on their areas of responsibility.

The Trustees remain satisfied that all insurable risks have been identified and adequately dealt with and that the Bureau’s exposure to other risks is kept at a minimum by good working practice by the management team, paid staff and volunteers.

WATFORD CITIZENS ADVICE BUREAU

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Achievements and performance 2021-22

The reduced risk of Covid-19 has enabled a gradual return of staff and volunteers to the office and an increase in face to face advice provision. Nevertheless, the efficiencies of the remote service developed during the pandemic such as flexible working, increased online information and advice and remote working capabilities will be retained into the future.

Impact at a Glance

The small decline in number of clients advised and telephone calls answered shows increasing number of issues and need for more detailed appointments. Clients demonstrated an increased need for advice with benefits and debt issues reflecting the impact of the increasing cost of living.

National Citizens Advice continued to receive funding from the Department for Work and Pensions to run the Help to Claim service, supporting clients to set up initial Universal Credit claims. Watford Citizens Advice continued as a local office to participate in the project, being granted funds to do so, and all Help to Claim services operated by Watford Citizens Advice were provided according to the grant agreement. In addition, National Citizens Advice secured funding from the Money and Pensions Service (MaPS) to increase the capacity of debt advice nationwide.

Large numbers in the UK and locally are experiencing the acute financial impact of the increased cost of living and struggling with income not covering outgoings. We are witnessing an increase in clients coming with fuel debts, needing food vouchers and being eligible for charitable support.

The Trustees are pleased to report that the Bureau has continued its volunteer recruitment and training

program with 24 new volunteers being trained during the year.

Specialist legal advice is available for family and immigration issues. Expert Advice is available for Benefits,

Debt, Employment and Housing issues.

WATFORD CITIZENS ADVICE BUREAU

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

The Bureau continues to:

In recent surveys of clients advised by Watford Citizens Advice, 84% of respondents indicated that the Bureau had helped them to find a way forward with over 88% likely to recommend the service.

Projects

Projects undertaken by the Bureau during 2021/22 included:

Achievements of the volunteers

Volunteers are an essential part of the service provided by Watford Citizens Advice, providing advice and information to the clients. All the volunteers are very generous with their time either working in the office or remotely. During the 2021-22 period, volunteers contributed an average of 200 hours per week of time.

The Bureau offers excellent training to staff and volunteers. Each volunteer adviser undergoes over 400 hours of training before becoming qualified to advise at a generalist level and additional training is required for specialist advisers.

Strategic report

The description under the headings "Achievements and Performance 2021- 22" and "Financial Review" meet the company law requirements for the Trustees to present a Strategic Report.

Financial review

The year ended 31 March 2022 saw income of £446,546 and expenditure of £441,821. Both the income and expenditure are lower than last year reflecting the end of some projects.

The funding environment is very challenging with a reduction in available funding in general, commissioning and increased competition. A number of new funders and projects are expected in the new financial year which will help to provide dedicated support for Debt issues. Some of the existing funding streams will also continue.

Next year’s budget projects a deficit of approximately £13K for the 2022-23 period which includes a salary increase for the staff and increased national insurance contributions.

WATFORD CITIZENS ADVICE BUREAU

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Following an actuarial valuation during the year, the pension scheme liability fell by £28,251, this is reflected in the Statement of Financial Activities on page 9. This reduction is subject to future revaluations and could therefore be a temporary reduction in the scheme liability rather than a permanent reduction. As a result of the adjustment following the actuarial valuation and the amounts paid to the pension scheme during the year, the pension liability has decreased from £49,354 to £8,899.

At the year end, £407,544 was held as cash at bank, of which £35,479 related to restricted funds.

Principal Funding Sources

Watford Borough Council (WBC) remains the largest funder of the Bureau, providing 56% of income. WBC also provides premises as part of the annual grant.

In addition to this, the Bureau also received 20% of its income from Hertfordshire County Council for the Crisis Intervention project and specialist debt advice.

Investment Policy

The Articles of Association gives the Trustees power to invest or deposit funds in any lawful manner. The WBC grant is paid quarterly, and the Bureau has placed any surplus funds on deposit with its bank. In order to mitigate any losses should there be another banking crisis, the Bureau has set up Virgin Money and United Trust Bank Charity Accounts, which will hold on deposit funds within the level for financial compensation.

Reserves policy

The Trustees believe that the Bureau should hold financial reserves in order to ensure that it can continue to operate and meet the needs of clients and creditors in the event of unforeseen circumstances. The pension fund deficit is considered to be an operating expense and as such the liability for the pension fund is met out of current income.

Unrestricted reserves

The Trustees consider that it would be prudent to set aside at least 6 months operating expenditure; at 31 March 2022 this equates to some £212,611 compared to actual unrestricted reserves of £331,402.

Plans for Future Periods

The Trustees and Chief Officer agreed that the Bureau’s Development Plan should be focused on

Structure, governance and management

Governing Document

The Bureau is a company limited by guarantee governed by its Articles of Association dated 23rd September 2010. It is registered as a charity with the Charity Commission. Anyone over the age of 18 or any association with an interest in furthering the work of the Bureau can become a member of the Company. Each Trustee is also a member and there are currently 24 members, each of whom have agreed to contribute £1 in the event of the charity winding up.

WATFORD CITIZENS ADVICE BUREAU TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AIARCH 2022 The Trustees who served during the year are listed on Ihe kninistrali¥e Infomiation p￿e. The dir￿10T8 of th8 Company are atso trustees of the Bu{￿U for the purKw of Charity law and under th8 Company's Articles are known a$ members of the Tnjstee Board. Undgr tho requirements of the Articlgs of Association, elected Trustees serve for a pwiod of three yoats after which they must be re-olecled at the naxt Annual General Meeting. Nominated or cgwted members may be el￿d or re-appointed after throe years. Trustees have the power to C￿opt members to fill speaalist roles. Trustees nominated by l#lBC are subject to the appointrnent procosses of that and the guthlin8s on appointrnent to put4ic otTK8 a5 they apply to tocal govemment nominees. rwst•• Inductlon •nil Trlnlng Ngw Trustsos attend an Induction Training, which gives them an oulline of the Citryens Advice SeNices and its aims. principles and poliues. Trustees are givgn introductory infomi8tion and Ihe new Tru8tèe8 8180 spend time in the Bureau and have meetings wrth the speualist advwrs, the Chf Officer and the Company Secretary. There are explanations of the rose of a TrusteelTh"rector. the Board, the development p18n and Issues including funding and ¢I￿nt 5t8tisb'¢s. Trustees with interests in parti￿lar areas are encouraged to go on with further training. There are learning materials availabl8 for Trustees and these rangg fr(xn racruthient & 8election lo health & Safety. Trustees are ablo to attend reg￿nal training events and arn updated on governance issues a8 n￿68$0ry. TfU8te88 are a8kwJ to ￿lets on annual basis online training in Infomation A88urance. The Trustee Board currently ¢Mipri8e8 the chaiM￿n, Treasurer, c￿8fty Secretary, five Tru$ts88 and Tru$tg0s reprèsenbng IhBC. The Trustee Board moets al least four 8 year as well as hawng an annual Strategy Away day where the Trustse Board r6vi8ws the scn and perfom)ance of the Burggu. Tho Truslee Board give8 the Chief Officer duli88 and pNers to represent 8ryJ to manage the Bureau in accordance with thè delegation of authorities and policio$ approved by the Tru8tee Boar(l. R•l8t•d Partl•• The Bureau is a member of National Citizens Advice Bureaux fcitizens Adv￿￿, whi¢h provid88 the Bureau with ils Infomiatson System. AthsemeL and the ca￿re0)rdIng system Casebook. Citizens Advice al80 provides IT support, sp￿•9115t ¥UPFOrt and audrts the Bureau for organisa￿n81 perforn)ance and for qualty of athca. VVBC prowde$ tho gwntial corn fut)dirKJ for the Bureau aNI this indudes Krn18es co8t8. The Bureau is part of the Hertfordshire Citizens Advice SeNv. Wh￿ Wofks in thse partnership and makes joint bids for funding. The Bureau is a member of the locAI Votuntary Sector oJnSo￿'uM K&fford and Three Rivers TrusL The Bureau has links with local soltcilors who offer Pr￿l￿O a(fvi¢e. Th8 Trustses Report was apwovgd by Ihe 8oard ofTnMte83. Mr M. F. Slddlql Chairman Daled.. 8 November 21)22

WATFORD CITIZENS ADVICE BUREAU

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2022

The T rustees are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the T rustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these accounts, the T rustees are required to:

The T rustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

WATFORD CITIZENS ADVICE BUREAU INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF WATFORD crrizENS ADVICE BUREAU I report lo the trustees on rny examination of the finanual statemenls of IAètford Cibzens Advice Bureau (the charity) for the year ended 31 March 2022. Rg8ponsibllttle8 and ba818 of rnport As the trustees of the charity {and abo its directors for the purposes of company Iwl you are responsible foi the preparation of the ffinancial slalements in accordan￿ wilh the requirements of the Companies Act 2006 {Ihe 2006 Act). Having satisfied myself that the financial stements of the charity a￿ not required to be audited under Part 16 of the 2006 Act and are eligib￿ for independenl examinat#)n. I report in respect of my examination of the charity's financial ststements carried oul under section 145 of the Charibes Act 2011 (the 2011 Act). In carryin9 out my examination I have followed all the applicable DI￿￿0￿$ gNen by the Charity Commission under section 145{5} Ib) of the 2011 ACL Independ•nl •xamlnerf8 8tatsm•nt Since the charity's gross income exceeded £250.000 your examiner must be a member irf a body listed in section 145 of Ihe 2011 ACL I confim that l am qualffied to undertake the examination because l am a member of The Institute of Chartered Accounlants in England and V￿leS. wh￿ti is one of the listed bodies. I have completed my examinabon. I confimi that no mattets have come to my attention in conne¢tion with the examination giving me cause lo believe that in any malerial respect accounbng records were not kept in respect of the charity a$ required by seth.on 386 of the 2006 Act.. or the financial statements do not accord with those records.. or the finanual slalements do not cofflpty wrth the alxounting requirements of section 396 of the 2006 Act other than any fequiremenl that the acownts gNe a true and fair view whKh is not a matter considered as part of an independent examin8b"on-, or the financial statements have not been prepared in ￿¥[danCe ￿th the methods and principles of the Stalemenl of Recommended Practice for a¢counb"ng and reporting by charities applicable lo charities preparing their accounts in accordance with the Financi Reporting Stsndatd applicabte in the UK and Republic of Ireland IFRS 102). I have no eoncemg and have come across ¢)ther mattets in connection wilh the examination to which attention should be drawn in this report in order to enable a proper urKlerslanding of the financial statements to be reached. Gary Howard FCA Howard Wilson Chartered Attountants 36 Crown Rise dtford Hertfordshire D25 ONE Dated.. 9 Novembef 2022

WATFORD CITIZENS ADVICE BUREAU

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2022

Current financial year
Unrestricted
Restricted
funds
funds
2022
2022
Notes
£
£
Income and endowments from:
Donations and legacies
3
258,487
1,700
Advisory services
4
-
185,328
Investments
5
825
-
Other income
6
52
154
Total income
259,364
187,182
Expenditure on:
Raising funds
7
41
-
Advisory services
8
258,948
182,832
Total expenditure
258,989
182,832
Net incoming resources before transfers
375
4,350
Gross transfers between funds
860
(860)
Net income for the year/
Net incoming resources
1,235
3,490
Other recognised gains and losses
Actuarial gain on defined benefit pension schemes
28,251
-
Net movement in funds
29,486
3,490
Fund balances at 1 April 2021
294,637
31,989
Fund balances at 31 March 2022
324,123
35,479		 Total
2022
£
260,187
185,328
825
206
446,546
41
441,780
441,821
4,725
-
4,725
28,251
32,976
326,626
359,602		 Total
2021
£
247,944
309,879
1,600
240
559,663
-
423,522
423,522
136,141
-
136,141
-
136,141
190,485
326,626

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

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

WATFORD CITIZENS ADVICE BUREAU

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2022

Prior financial year

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income and endowments from:
Donations and legacies
3
245,875
2,069
Advisory services
4
9,871
300,008
Investments
5
1,600
-
Other income
6
150
90
Total income
257,496
302,167
Expenditure on:
Advisory services
8
133,922
289,600
Total expenditure
133,922
289,600
Net incoming resources before transfers
123,574
12,567
Gross transfers between funds
(860)
860
Net income for the year/
Net incoming resources
122,714
13,427
Other recognised gains and losses
Net movement in funds
122,714
13,427
Fund balances at 1 April 2020
171,923
18,562
Fund balances at 31 March 2021
294,637
31,989		 Total
2021
£
247,944
309,879
1,600
240
559,663
423,522
423,522
136,141
-
136,141
136,141
190,485
326,626

WATFORD CITIZENS ADVICE BUREAU

BALANCE SHEET

AS AT 31 MARCH 2022

Notes
Fixed assets
Tangible assets
11
Current assets
Debtors
12
Cash at bank and in hand
Creditors: amounts falling due within
one year
13
Net current assets
Total assets less current liabilities
Provisions for liabilities
13
Net assets
Income funds
Restricted funds
17
Unrestricted funds
General unrestricted funds
Pension reserve		 2022
£
9,261
407,544
416,805
(52,936)
333,022
(8,899)		 £
4,632
363,869
368,501
(8,899)
359,602
35,479
324,123
359,602		 2021
£
17,483
422,149
439,632
(63,652)
343,991
(49,354)		 £
-
375,980
375,980
(49,354)
326,626
31,989
294,637
326,626

The Balance Sheet continues on the following page

WATFORD CITIZENS ADVICE BUREAU BALANCE SHEET (CONTINUED) ASAT 31 MARCH 2022 Tha company 1$ enthd to the exemptN)n from the audrt requirement contsined in section 477 of th& Compan￿8 t 2006. for thg year ended 31 March 2022. The Trugtees ackrw74vledge their respons￿11￿ for ensuring that the chanty kew wuntlng rets)rd8 which comply wrth section 386 of the Act and for prtyarfng financial Statements which grrfe a tnje and fair view of the State of affairs of the company as al the end of Ihe finanoal year and of its incoming resour￿$ and application of resources, including ts income and expenditure, for the financral year in a¢¢ordance with the requirements of sect￿n8 394 and 395 and which olherwlse compty wrth the requirements of the Companies Acl 2006 relating lo financial statemfrnls, so far as applicable to the comparty. The members have not required tho c<npany to o￿n an audit of its financial ststemertts for the year in question In a¢eordanee with gecbon 476. These financi81 ststements have been propared in accord￿ with the provlsions 8pplc4t4e to ￿MpAnI&S ¥ubje¢t to the small companl8s regimè. The finanrial statement8 wère approved ty th8 Trus1￿& on 8 Novemb8r 2022 P U. &Aor Mr M. F. Siddv4i Dr P. W. Carter Company R•gl•tr•llon No. 06463262 12-

WATFORD CITIZENS ADVICE BUREAU

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

Charity information

Watford Citizens Advice Bureau is a private company limited by guarantee incorporated in England and Wales. The registered office is St Mary's Churchyard, High Street, Watford, Hertfordshire, WD17 2BE.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

1.5 Expenditure

Expenditure is recognised when a liability is incurred. Contractual and performance related arrangements are recognised as goods or services are supplied. Expenditure includes any non-recoverable VAT.

Expenditure is allocated to activities as follows:

Charitable activities comprise costs which relate directly to delivering activities.

Governance comprises of costs which relate directly to governance arrangements and meeting statutoryrequirements.

WATFORD CITIZENS ADVICE BUREAU

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

(Continued)

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and machinery

straight line over 3 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .

It is the policy of the charity not to capitalise individual assets costing under £1,000.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

WATFORD CITIZENS ADVICE BUREAU

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.

1.10 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

There are some employees who are members of the Pensions Trust's Growth Plan which is a multiemployer pension Plan. The charitable company is unable to identify its share of the underlying assets and liabilities. It is therefore accounted for on a defined contribution basis. The annual contributions payable are charged to the Statement of Financial Activities. Further information concerning the Plan is given at note 15 .

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in income/(expenditure) for the year .

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other recognised gains and losses in the period in which they occur and are not reclassified to income/(expenditure) in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

WATFORD CITIZENS ADVICE BUREAU

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

(Continued)

1.12 Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2022
2022
£
£
Donations and gifts
6,661
1,700
Grants receivable for
core activities
251,826
-
258,487
1,700
Grants receivable for
core activities
Watford Council Direct
Grant
204,190
-
Watford Council
Premises
39,500
-
Tesco
1,000
-
Hertfordshire Community
Foundation
2,000
-
Citizens Advice Bureau
5,136
-
251,826
-		 TotalUnrestricted
Restricted
funds
funds
2022
2021
2021
£
£
£
8,361
2,185
2,069
251,826
243,690
-
260,187
245,875
2,069
204,190
204,190
-
39,500
39,500
-
1,000
-
-
2,000
-
-
5,136
-
-
251,826
243,690
-		 Total
2021
£
4,254
243,690
247,944
204,190
39,500
-
-
-
243,690

WATFORD CITIZENS ADVICE BUREAU

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

4 Advisory services

Advisory
Advisory
services
services
2022
2021
£
£
Sales within charitable activities -
17,325
Performance related grants 185,328
292,554
185,328
309,879
Analysis by fund
Unrestricted funds -
9,871
Restricted funds 185,328
300,008
Performance related grants
The Clothworkers Foundation -
4,850
Hertfordshire Citizens Advice Service 46,866
58,618
Citizens Advice Bureau - National and Local 128,416
114,775
New Hope Watford -
32,834
The Lawton Trust -
1,289
Community Fund -
10,000
Access to Justice - Community Justice Fund -
44,141
Hertfordshire Community Foundation -
17,000
Watford Health Trust 2,432
1,345
Other 7,614
7,702
185,328
292,554
Investments
Unrestricted Unrestricted
funds funds
2022 2021
£ £
Interest receivable 825 1,600

5 Investments

WATFORD CITIZENS ADVICE BUREAU

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

6 Other income

Unrestricted
Restricted
funds
funds
2022
2022
£
£
Other income
52
154
Raising funds
Costs of generating voluntary income
Advertising		 TotalUnrestricted
Restricted
funds
funds
2022
2021
2021
£
£
£
206
150
90
Unrestricted
funds
2022
£
41
41		 Total
2021
£
240
Total
2021
£
-
-

7 Raising funds

WATFORD CITIZENS ADVICE BUREAU

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

8 Advisory services

Staff costs
Depreciation and impairment
Other staff costs
Training
Project costs
Premises costs
Insurance
Repairs
Office costs
Computer costs
Travel expenses
General costs
Legal and professional costs
Bank charges and other finance costs
Governance costs
Analysis by fund
Unrestricted funds
Restricted funds
For the year ended 31 March 2021
Unrestricted funds
Restricted funds		 2022
£
324,141
2,316
228
10,344
-
59,543
1,819
704
20,723
9,342
4,027
3,457
2,806
382
1,948
441,780
258,948
182,832
441,780		 2021
£
303,559
1,503
1,076
13,409
8,430
39,500
1,832
432
23,468
21,562
1,179
3,549
2,627
69
1,327
423,522
133,922
289,600
423,522

Governance costs comprise of independent examiner's fees £1,320 (2021: £1,320) and AGM costs £628 (2021: £7).

9 Trustees

None of the trustees (or any persons connected with them) received any remuneration during the year, but 1 of them was reimbursed a total of £202 for miscellaneous expenses incurred on behalf of Watford Citizens Advice Bureau.

WATFORD CITIZENS ADVICE BUREAU

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

10 Employees

Number of employees

The average monthly number of employees during the year was:

Advice services
Management and administration
Employment costs
Wages and salaries
Social security costs
Other pension costs
There were no employees whose annual remuneration was £60,000 or more.
Tangible fixed assets
Cost
At 1 April 2021
Additions
At 31 March 2022
Depreciation and impairment
At 1 April 2021
Depreciation charged in the year
At 31 March 2022
Carrying amount
At 31 March 2022
At 31 March 2021		 2022
2021
Number
Number
13
12
2
2
15
14
2022
2021
£
£
287,235
271,190
19,593
17,457
17,313
14,912
324,141
303,559
Plant and machinery
£
21,981
6,948
28,929
21,981
2,316
24,297
4,632
-

11 Tangible fixed assets

WATFORD CITIZENS ADVICE BUREAU

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

12
Debtors
Amounts falling due within one year:
Other debtors
Prepayments and accrued income
13
Creditors: amounts falling due within one year
Notes
Other taxation and social security
Deferred income
15
Trade creditors
Other creditors
Accruals and deferred income
14
Provisions for liabilities
Notes
Retirement benefit obligations
16
15
Deferred income
Other deferred income
Deferred income is included in the financial statements as follows:
Deferred income is included within:
Current liabilities		 2022
£
7,119
2,142
9,261
2022
£
-
25,376
399
4,009
23,152
52,936
2022
£
8,899
8,899
2022
£
25,376
2022
£
25,376		 2021
£
14,735
2,748
17,483
2021
£
6,223
51,048
456
4,198
1,727
63,652
2021
£
49,354
49,354
2021
£
51,048
2021
£
51,048

WATFORD CITIZENS ADVICE BUREAU

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

16 Retirement benefit schemes

Defined contribution schemes

The company participates in the scheme, a multi-employer scheme which provides benefits to some 950 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out at 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions From 1 April 2016 to 30 September 2025: £11,243,000 per annum (payable monthly and increasing by 3% each on 1st April)

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.

Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

WATFORD CITIZENS ADVICE BUREAU

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

16 Retirement benefit schemes

Retirement benefit schemes (Continued)
31 March 2022
31 March 2021		 31 March 2020
(£s)
(£s)		 (£s)
Present value of provision 8,899
49,354		 58,478
Reconciliation of opening and closing provisions Period Ended 31
Period Ended 31
March 2022 March 2021
(£s) (£s)
Provision at start of period 49,354 58,478
Unwinding of the discount factor (interest expense) 285 1,314
Deficit contribution paid (12,489) (12,126)
Remeasurements - impact of any change in assumptions (205) 1,688
Remeasurements - amendments to the contribution schedule (28,046) -
Provision at end of period 8,899 49,354
Income and Expenditure Impact Period Ended 31
Period Ended 31
March 2022 March 2021
(£s) (£s)
Interest expense 285 1,314
Remeasurements – impact of any change in assumptions (205) 1,688
Remeasurements – amendments to the contribution schedule (28,046) -
Assumptions 31 March 2022
31 March 2021		 31 March 2020
% per annum
% per annum		 % per annum
Rate of discount 2.35
0.66		 2.53

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

The pension charge for the year was £17,313 (2021: £14,911).

WATFORD CITIZENS ADVICE BUREAU

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

17 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at
1 April 2020

£
Client Funds
6,030
Hertfordshire Welfare Assistance Scheme
-
Energy Advice and Best Deal Extra
250
Disability Benefits Service
1,666
Rough Sleeping Prevention Project
8,200
Scams Advice
-
The Clothworkers Foundation
-
Volunteer Training Programme
832
Hertfordshire Community Training Project
1,348
Community Justice Fund
-
Homeworking Initiative
-
The HERT project
-
The Money and Pensions Service (MaPS)
-
Help to Claim
-
Other
236
18,562		 Movement in funds
Incoming
resources
Resources
expended
£
£
3,965
(8,430)
42,298
(42,298)
-
(250)
7,500
(9,166)
32,834
(37,672)
24,459
(24,459)
4,850
(4,850)
-
(832)
19,333
(11,519)
44,141
(42,641)
37,000
(24,350)
22,500
(18,750)
23,663
(23,663)
18,337
(18,337)
21,287
(22,383)
302,167
(289,600)		 Transfers
Balance at
1 April 2021

£
£
-
1,565
-
-
-
-
-
-
-
3,362
-
-
-
-
-
-
-
9,162
-
1,500
-
12,650
-
3,750
-
-
-
-
860
-
860
31,989		 Movement in funds
Incoming
resources
Resources
expended
£
£
4,380
(3,275)
44,468
(29,443)
-
-
10,833
(9,682)
-
(3,362)
-
-
-
-
-
-
9,996
(6,662)
-
(1,500)
-
(12,650)
38,320
(38,318)
38,218
(38,218)
12,480
(12,480)
28,487
(27,242)
187,182
(182,832)		 Transfers
Balance at
31 March 2022
£
£
-
2,670
-
15,025
-
-
-
1,151
-
-
-
-
-
-
-
-
-
12,496
-
-
-
-
-
3,752
-
-
-
-
(860)
385
(860)
35,479

Client Funds is funding received to assist clients purchase items of household equipment.

Hertfordshire Welfare Assistance Scheme is funding to provide advice and guidance to clients in extreme hardship situations, to reduce debt and increase income.

Energy Advice and Best Deal Extra are projects whose aim is to eradicate fuel poverty.

WATFORD CITIZENS ADVICE BUREAU

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

17 Restricted funds

(Continued)

Disability Benefits Service is funding from Blandford Trust towards the cost of the service.

Rough Sleeping Prevention Project is funding from New Hope, Watford towards the cost of the project.

Scams Advice - As part of Hertfordshire Scams Support and Prevention this project is funded by Hertfordshire Police and Crime Commissioner. We are delivering scams advice and training sessions to clients and frontline workers.

The Clothworkers' Foundation - Funding received to upgrade our IT hardware to improve productivity and to improve information assurance in the office.

Volunteer Training Programme - Funding from the National Lottery fund used to recruit, train, support and supervise new and existing volunteers to deliver information and advice to people in Watford affected by Covid-19.

Hertfordshire Community Training Project - We received funding from the National Lottery Fund to train staff and volunteers based across Hertfordshire Citizens Advice Services.

Community Justice Fund is a grant from The Access to Justice Foundation to recruit a welfare benefits caseworker to mitigate the loss of volunteer capacity and meet the expected post lockdown surge in demand.

Homeworking Initiative is funding from Hertfordshire Community Foundation, Hertfordshire County Council and The National Lottery Community Fund to allow remote working for staff and volunteers and increase staff levels to meet the demand during lockdown.

The HERT project is funded by Hertfordshire County Council to provide benefits and debt advice to Primary Care Network (PCN) Link Workers, Community Navigators and Social Prescribers in Hertfordshire. The project is run by The Money Advice Unit (MAU) and Citizens Advice Hertfordshire (Hertsmere and Watford). MAU provide benefit advice with Citizens Advice Hertsmere and Watford providing debt advice.

Money and Pensions Service (MaPS) is funding secured by the National Citizens Advice to increase the capacity of debt advice nationwide.

Help to Claim is a project which offer s support to clients setting up new claims for Universal Credit .

Other represents other smaller restricted funds.

WATFORD CITIZENS ADVICE BUREAU

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

18 Analysis of net assets between funds

Unrestricted
funds
Restricted
funds
2022
2022
£
£
Fund balances at 31 March 2022 are
represented by:
Tangible assets
4,632
-
Current assets/(liabilities)
328,390
35,479
Provisions and pensions
(8,899)
-
324,123
35,479		 Total
2022
£
4,632
363,869
(8,899)
359,602		 Total
2021
£
-
375,980
(49,354)
326,626

19 Related party transactions

There were no disclosable related party transactions during the year (2021 - none) .