Charity Registration No. 1111436 Scottish Charity No. SC040728 Company Reglstratlon No. 5123444 (England and Wales COMMUNITY MONEY ADVICE LIMrrED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2024 COMMUNITY MONEY ADVICE LIMITED CONTENTS Page Trustees report Stalement of trustees responsibilitses Independent auditors report Statement of financial activities 10-11 Balance Sheet 12 Statement of cash lkn 13 Notes to the financial statements 14-24 COMMUNITY MONEY ADVICE LIMITED LEGAL AND ADMINISTRATIVE INFORMATION Dlre¢tors and Trustees H R Keates T D Jackson S E Vinson J S Mander A Padfield J E Wanless Secretary S E Winson Charity numbor 1111436 Company number S123444 Prfnclpal addrns 18Wle Cop Shrewsbury Shrop5hire SY1 1XB Registsred office The Bamabas Centre Longden Coleham Shrewsbury Shropshire SY3 7DN Audltor8 James Hotyoak & Parker Limited 1 Knights Court Arthers Wdy Battlefield EnterpTise Park Shrewsbury SY1 3GA COMMUNITY MONEY ADVICE LIMITED STATEMENT OF TRUSTEES RESPONSIBILITIES FOR THE YEAR ENDED 31 MAY2024 The trustees, who are also the directors of Communty Money Adwce Limited for the purpose of company law. are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounts'ng Practice). Company Law requires the trustees to prepare finan¢ial slatements for each financial year whith grve a true and fair view of the stste of affairs of the company and of the incoming resources and appliCat￿n of resources. induding the income and expenditure. of the charitable ￿MpanY for that year. In preparin9 these financial statements, the trustees are required to: - select suitable accounting policies and then apply them c4nsistenty: - observe the methods and principles in the Charilies SORP; - make judgements and eslifflates that are reasonable and pwdent: slate whether applicable UK Accounting Standards have been followed, subied to any material departures disdosed and explained in the financial ststements.. and prepare the financial statements on the going concem basis unless rt is inappropriate to p￿SUrne that the company will Continue in operalion. The trustees are responsible for keeping adequate accounting records that dijdose with reasonable accuracy at ny ts'me the financial position of the company and enable Ihem to ensure that the financial statemenls comply with the Companies Act 2008. They a￿ also responsible for safeguarding the assets of Ihe c(xnpany and hence for laking reasonable steps for the preventson and dete(*'on of fraud and other iffegulanties. COMMUNITY MONEY ADVICE LIMITED TRUSTEES REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MAY2024 The truslees present their annual report and financial statèmènts for thé yèar ended 31 May 2024. The financial statements have been prepared in accordance with Ihe accounting policies set oth in note 2 to the financial statements and comply with Ihe company's Artides of Assoaalion and Memorandum. the Companies Act 2006 and "Accounting and Reporting by Charrlies.. Statement of Recommended Praclice applicable lo charits'es preparing their accounts in accordance with the Financial Reporting Standard applicable in Ihe UK and Republic of Ireland IFRS 102>" (effedive 1 January 2019). Objectives and •¢tivities The main objects of the chanty are to relieve p0￿rtY by provbjing thce and training to community groups and non-profft making organisations in order for them to assist persons who have been affected by debt. The main aclivities of the charity are the development of (*urd) based SLKial and ￿mmunrtY adion especially in the field of debt and money advice to people in need. Also the establishment of completety free money advi centres in every community in the nation together with pubkncation of education and training materials related to Ihe al)ove activities. In planning the activities of the charitable company, the directors have considered the Charity commisslon's guidance on public benefit. The charity provides adwce lo persons fft debt and abo [￿0videS training to debt advisors. In addition. the tharty advises Govemment, the national press arml TV on pefsonal indebtedness. We summarise our overall aims in the statement, 'Freedom from debt. hope for the future.. Achievements and perfomHnce The driving force behind CMAS cenlres has atrways been to help peoF4e trapped by debt to find freedom through three key elements.. regulated debt advi￿. money management skills and ongoing face to face support for as long as it is required - a unique offen'ng amongst debt advice proNiders in the UK. Regulatory requirements from the Financial Conduct Authority (FCA) in the area of Consumer Duty have caused significant work across the sector for implementation. for byhich training materials and CMA$ case and centre- management software, "Catatysl" have been speofically desi9ned to address. Money and Pension Ser¥ice organrzats'tylal accyedilats'on wa5 achieved for all CMA FCA-authoiized finns and th8 CMA Hub. FCA Consumef Duty Guide and associated policy and procedures for Ful Debt Adwce and Connect cenlres was written and disseminated out to the ne￿ork of the 31 st Juty 2023 deadhne. Nab'onally. pressures on funding streams and debt advice organisatN)ns has resufted in a shrfting landscape of provision, that has reSU￿ed in the loss of advic* centres from many providers. Intentional work to consider efficaencies and to redesign the operational praclices of CMA has been carried out. with particular attention on the process for starting new debt advice centres under 3 "Conned-Firsl' model. This enables new Gentres to open Telatively quickty, with dèbt advice being provided centrally by CMA. with a planned future choice of upgrading lo being a full debt-advice provhler once training and expenence has been gained after the first year. This shift of operating model has required swnfficant alieration to CMA'S oper*'ons. COMMUNITY MONEY ADVICE LIMITED TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MAY 2024 CMA Snapshot This year. 20 new CMA Connect centres have started. 9.51)O households have been helped. representing £38m of debt. Training There has been signfficant uplrft in demand for CMA-provided training across the debt advice se¢tor. This has precipitated upgrades to CMA systems and a planned increase in personnel to be able to meet this demand. CMA ran 214 training days. wtth 1.145 people attending. New Training Management and Leaming Management systems have been implemented to aulomale much of our administration. and enable our ath'viti"es to appeal to a wider range of leaming styles. 90 12023.. 62) new Money Mentors (collecb'ng and collating dienls, finan(xal infom)ation and making referrals to CMAS Hub for regulaled debt advice> were added to Ihe team of Connect centres. We piloted and hosted the bespoke "Supporting and Advising Vulnerable Clients" course. MaPS Accreditation gained for CMA'5 level 3 & 4 Debt Adviser L￿rSes. 198 (2023: 109) Budget Coaches were trained to support indNiduals armj families to budget and live within their means. Catalyst The new version of our bespoke centre and case management software, Catatyst, rolkd out in Spr￿9 2024. This has brought a significant uplift to case detail. embedding credil reports, Debi Relief Order preparation, and Consumer Duty requifemenls at the heart of case details. Centres have embraced the addtlional features and modern interface, and appreciated Ihe number of functionalty requests that have been able to be implemented. A rolling programme of lurther development is now part of the CMA roadmap. Head office To mtligate against the restriclions of being a d&cenlralised networked team. we secured use office space in the heart of Shrewsbury to enable up to 6 staff lo work from. This is parbcularty essential for holding stocks of literature and providing a physical IoGatson for a core team to work together. Personnel CMA'S IT Manager, Chris Marriott. wa5 tragicalty killed just after Christmas 2023. Heather Keates provided immediate support and a5Si5tance to his family. and fielded media attenb'on. whilst supporting Col￿agueS through the unb'mely and unwelcome impa(a across CMA. Chris was instrumental in the design and planned rollout of our new version of Catalyst nationally. It is testament to his skill and passion that the subsequent upgrade that occurred a few weeks later was smooth and unanimously appreciated across the entire nelwork A ful￿ was opened to support Chris's family. which raised over £55.000. Long-tenn consideration began on weparing CMA for transition of key personnel due lo retirement, with an expected departure of John Franks. COO around 202&2026. CMA bade farewell to Rory Sanders. a long-time stalwart of training and knowledge of the debt advice sector. being replaced by Be(xi Amos as Trainlng Manager, wth a F4anned eventual transition to Chief Operating Officef in the fvlure. Martin Bethell. Business Development Manager. moved lo a new role elsewhere in May 2024, being replaced by former-OSM, David Chambers. Operational Support Managers oversee the debi advice centres around the UK. As the shape of the network and geographic distribution Changes over time. OSM workload is redistributed and adapted as necessary. Bev Anderson joined the team to provhle addttional support to the I￿rrent network of Connect and full debt advice centres as well as to the Money Menlors. Trustees also reviewed remuneration levels and revised policies for the consistent care and appreriation of stsff who have been with CMA for signtficant duration of years. COMMUNITY MONEY ADVICE LIMITED TRUSTEES REPORT (CONTINUED){INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 MAY2024 Scotland On 1 Si April 2024, the Salvation Army took the decasion to ￿ase membership of CMA. CMAS provision of debt advice in Scotland was primarily based upon support for the Salvation Amiy centres. Tnjslees therefore took the reluctsnt decision to immediately close CMA Scotland. redistributing CMA resources around the north of England. Flnanclal revlew The total income for the year was £674.257 (2023.- £719.470) and total expenditure on charitable activilies amounted to £842,080 (2023". £828.442). At the year end the chanty had £232,639 (2023.. £405,385) in unrestricted reserves and £10.73012023'. £5,80n in restricted reserves. Reserves policy CMA maintain5 free cash reserves to cover whichever is the greater of 3 months. operating costs or making staff redundant. Fundraising A Signifi￿nI portion of CMA income is generated from trusl fund applicakn'ons and funds distributed from the Money & P&n￿OnS servi￿ for our processing ol Debt Relief Orders. Trustees wish lo express their deepest thanks to the trustees of the Communty Fund who are providing £332,670 over three years. This has enabled us to develop our "Catatyst" t¢)ol for all centres, devèlop our ChatBot. produce and accredit Level 3 training with MaPS. enhance our bookin9 Systems for training. and develop budgeting tools and website for dients. CMA Trustees are aware that these inu)me streams are nol reliable as the landscape of dèbt adwce ¢han9es each year. As part of OUT finanoal diligence. we have remsed Our future plans in response to falling reserves and slrudured staffing provision to move CMA to a sustainable footing. We ar8 grateful to all our partners who support us finan(#ally and lo God for His faithful provision. Our centres will always be at the heart of everything that we do. and CMA remains committed lo ensuring we conlinue to provide each of our ￿ntre$ with the best possible service al all times. based upon individual needs, whilst seekiny a￿vaYS to improve and enhance what we do. This enables our centre5 to help thousands of families become debt free giving them real hope for the future. Twst Fund CMA operates a trust fund. seeded with 10% of all inu)ming unrestricted donations. This fund is split 50150 betsveen our support lor CHAPS in Kenya, and grants lo enable centres to help dient$ with the cost of Debt Relief Ordeis and 8ankruptcy or for help for sel up and training costs where a i%ntre is unable lo meet the full o?st thernsefves. The national cancellation of the DRO fee had an immediate impact on the levels of applications lo fund, with trustees reviewing the purpose of the fur￿ and to r&assess the anticipated composition of requests. This year the wttess for applications. review and subsequent awards has been redesigned. COMMUNITY MONEY ADVICE LIMITED TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MAY2024 Future developments CMA faces a period of intemal transition of personnel and systems as we seek to adjust to new ways of working, and a grOV￿ng proportion of centres starting as ConnerA cenlres. We are confidenl that the Tight personnel are on board to help us adapt, in a period where change seems constant. The Financial Conduct Authority conb'nues to conjure new requirements, imposing additional work for the debt advice sector. A Board Report based on Consumer Duty Poliaes will be required wthin every full debl advice centre and for CMA. Work is underway within Catalyst to provide Ihe raw slalislics and reporting required. Consumer Duty training is being embedded in 811 first three parts of CMA training matefial. A new specialist trainer, John Coates, will join the training department lo help facilitate the roll out of new training modules, including the new Supporting and Advising Vulnerable Clients course. Structure. govemance and managt)ment Community Money Advice Limited is a company limited by guarantee govem8d ty its M8morandum and Artides of Association dated 4th May 2004 which have subsequently been amended. It is registered as a i*arity with the Charily Commission. Members of the chanlable company guarantee to contribute amounts not exoeding £10 to the assels of the charttable company in the event of a winding up. The Iruslees, who are also the directors for the purpose of company law, and who served during the year and up to the dale of signature of the financial statements were: H R Keates T D Jackson S E Vinson J S Mander A Padfield J E Wanless Trustees meet 6 times a year. with a half-day with key CMA staff alongside Ihe natiorkql conference, and an extended meeting in person in March. We Intentional￿ cover all requirements of the Charty Commission over a 2-year cyde. All Irustee5 keep the composition of the board under review and WFII seek to appoint addrtional members with appropriate Skills and expert15e should the need arise. The tru51ee board airns lo have a broad representation of trustees. The opportunity for new trustees is advertise(J auoss the network together with the outline ol the type of person required. Generally. tnjstees will have a knowledge of the sector. of a spectfic s￿.11 set that is needed to be a Christian. Interested parbes are given details of the background of the tharitable company in order to make them awarè of current activÉties. Trustees refreshed rules around tenure of mambefship. with a defautt pemd of service of 3 years. Remuneration Annually. the Twstees review the salaries of the team arKI aim to ag￿e an increase Ihat keeps pace wilh Ihe Consumer Price Indèx. The Chief Executive Officer advises the trustees on any ￿ternal regrading required a5 part of promotion or structural changes. as they 0￿r. Risk management A risk register is kept under r8Vi8w by truslees and used each year to prfractivety guide trustees to areas of operations requiring scrLrtiny, with the aim of reducing risk to CMA. We are satisfied that systems a￿ in place to mitigate exposure to the major risks. COMMUNITY MONEY ADVICE LIMITED TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 MAY2024 Dlsclosure of Inforniatlon to audltor Each of the truslees has confirmed that there is no inforTnation of whiL* ihey are aware which ts relevant to the audit, but of whith the audrtor is unaware. They have further confirmed that they have laken appropriate steps lo identify suth rèlèvant infornation and to establish that the auditor is aware of suth information. The trustees report was approved by the Board of Truslees. J S Mander Board of trustees COMMUNITY MONEY ADVICE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF COMMUNITY MONEY ADVICE LIMITED Opinion We have audited the financial ststements of Communty Money Advice Limiiad (the 'companY) for th8 year ended 31 May 2024 which Comprise the statèment of financial actiVFties. the balance sheec the statement of cash flows and notes to the financial slalements. including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and Unrted Kingdom A￿)untIng Standards. including FinanGial Reporting Standard 102 The Finan￿al Reporting Standard appli¢ab18 in thé UK and Republic of lrnland (Uniled Kingdom Generally Accepted Accounting Practice). In our opinion, Ihe financBI statements.. give a true and fair wew of the state of the charitable compan￿3 affairs as at 31 May 2024 and of its inwming resources and application of resources, for the year then ended: have been properly prepared in aC￿rdan￿ with Uniled Kingdom Generalty Acwted Accounting Practice, and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audrt in accordance with Intemalional Standaids cffl Auditing (UK) {ISAs (UK>) and applicable law. Our responsibilities under those standards are further descnbed in the Auditors responsibilrties for the audit of the financial statemenls section of our report. We are independent of the c>)mpany in accordano with the ethical requirements that are relevant to our audit of the financkil statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe Ihat the audit evidence we have obtained is suffiu'enl and appropriate to provKle a basis for our opinion. Concluslon• relatlng to golng concern In auditing the financial slatements. we have concluded that the trustees use of the going concern basis of accounting in the preparation of the financial statements is 4)propriate. Based on the work we have perfomied, we have not rdentsfied any material Un￿rtaintieS relating to events or condilions Ihat, individually or collectivety, may cast significant doubt on the company s ability to continue as a going cOn￿M for a period of at least ￿e1ve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilrties of the trustees with respect to going concem are described in the relevant sections of this report. Other infomiation The other infornation comprise5 the information induded in the annual report other than the finan￿al statements and our auditols report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does nol cover the other information and we do not expre53 any form of assurance ￿ndUS1on thereon. Our responsibilty is to read the other infomiation 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. Of Otherwise appeafs to be materially misstated. If we identtfy such material inconsistencies or apparent material misstatements. we are required to delermine whether this gives rise to a material misstatement in the financial statements themselves. ff. based on the work we have performed. we CA)ndude that there is a material misslalement of this other infoTmation. we are required lo report that fact. We have nothing to report in this regard. Matter8 on which we are requir￿ to report by exceptlon We have nothing to report in respec* of the following matters in relation to which the Charities (Accounts and Rewrts) Regulalions 2008 require us lo report to you if, in our opinion.. the information given in the finanaal siatements is inconsislent in any material ￿pect with the twslees report., or sufficient accounting records have not been kept,. or the finanual statements are not in ag￿ement with the accounting recfjrds.. or we have not received all Ihe infom)ation and explanations we require for our audL COMMUNITY MONEY ADVICE LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF COMMUNITY MONEY ADVICE LIMITED Responslbllftles of trustees As explained more fully in the statement of trustees responsibilrtEs, the trustees. who are also the directors of the company for the purpose of company law. are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such inlemal control as the trustees delemiine is necessary to enable the preparation of financial statements that are free from material misstatement. whelher due lo fraud or error. In preparing the financial statements, the trustees are responsible for assessing the company's ability lo continue as a going concem, disclosing. as applicable. matters related lo going concem and using the going con￿rn basis of a￿U￿tIng unless the truslees either intend lo liquidate the tharitabSe company or lo cease operations, or have no realistic ahemalive bul lo do so. Auditors responsibilities forthe audit of the financlal ststements We have been appointed as audttor under seclion 144 of the Charities Act 2011 arKI report in ac(x)rdan¢e with the Act and relevant regulations made or having effect It￿#re￿nder. Our objectives are to obtain reasonable assurance about whether the finan¢sal statements as a whole are free from material misstatement. whelher due to fraud or error, and to issue an audilorfs report Ihat Includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audrt conducted in accordance wtth ISAS IUKI will akniays detect a material misstatement when it exists. Misstatements can anse from fraud or error and are considered material rf. Individually or In the aggregate, they D)uld reasonably be expected to influence the economic decisK)ns of users taken on thè basis of these financial statements. The extent to which our procedures are Capable of delecling iffegularitss, induding fraud, ts detail8d below. The audit team obtained an understsnding of the legal and regulatory framework5 that a￿ applicable to the Company and deletmined that the most sIgnrf￿nt are those that relate to the reporting framework (FRS102 and the Companies AIA 2006), the ￿levan1 tsx compliance regulations. employment law. Heatth and Safety Regulations and the EU General Data Protection Regulation (GDPR). le understood how the company is comptying with these frameworf(s by making enquiries ol managemenl and those responsible for legal and compliance procedures. We assessed the susceptibilty of the CoMpan￿S financial statements to material misstatement, including how fraud might occur by meeting with key management lo under5tsnd where they considefed there was a susceptibilty to fraud. Based on our understanding, our procedures invoEved enquiries of management and those char9ed wrth govemance, manual journal enlry testing, ¢ashbook reviews for larrje and unusual rtems and the challenge of significant accounting estimates used in prepanng the finanoal statements. Because of the inherent limitations of an audiL there Is a rfsk that we will not detect an irregulanties, including those leading to a matenal misstatement in the finanual slatements or non-compliance with regulation. This risk increases the More that compliance wrth a law or regulation is removed from the events and transactions rellected in the financial statements, as we be less likely to bei>)me aware of instances of non-u)mplk?nce. The risk is also greater fegafding irregularities occurring due to fraud rather than error. as fraud involves intentional concealment, forgery, collusion. omission, or misrepresentation. A fvrther description of our reg)onsibiltties is available on the Financial Reporting Counol's webslte at.. https.'Il wé4w.frc.org.uklauditors resp(￿sIbilIties. This descnption forms part of Our auditorfs report. COMMUNITY MONEY ADVICE LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF COMMUNITY MONEY ADVICE LIMITED This report is made solely to the company's members, as a body, in accordance with sethon 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the company's members those matters we are required lo state lo them in an auditors report and for no other purpose. To the fullest extent permitted by law. we do not accept or assume responsibility to anyone other than the company and the company's members as a body. for our audit work, for this report, or for the opinions we have formed. Mr Robert Humphreys BEng FCA (Senior Statutory Auditor) for and on behalf of James Holyoak & Parker Limited 2 January 2025 Chartered Accountants Statutory Auditor 1 Knights Court Archefs Way Battlefield Enterprise Park Shrewsbury SY13GA James Holyoak & Parker Limited is eligible for appointment as audrtor of the company by virtue of its eligibilty for appointment as auditor of a company under section 1212 of the Companies Act 2006. oro J o COMMUNITY MONEY ADVICE LIMITED BALANCE SHEET AS AT31 MAY2024 2024 2023 Notes Curr•nt a$s•ts Oebtors Cash at bank and in hand 10 19,804 282,011 37.561 401,640 301.815 439.201 Creditors: amounts falling duè within one year 12 (58,446) (28,009) N8t current assets 243,369 411,192 InGome funds Restricted funds Unrestricted funds Designated funds General unrestricted funds 18 10,730 5.807 17 17.170 215.469 49.241 356,144 232.639 405,385 243,369 411,192 The company is entitled to the exernptK￿ from the audit requirement contained in seclion 477 of the Companies Act 2006, for the year ended 31 May 2024, although an audbt has been carried out under section 144 of thè Charities Act2011. The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2CK)6 with rèspect to accounting records and the preparation of financial ststements. The members have not required the company to oblain an audit of ils financial stalemenls under Ihe requirements of the Companies Act 2006. for the year in question in accordance with section 476. These financial statements have been prepared in actordance with the provisions applicable to companies subje to the small Companies wime. The financial statem8nts were approved by Ihe Trustees on ... T D Jackson Trustee J S Mander Trustse Company Registration No. 5123444 12- COMMUNITY MONEY ADVICE LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MAY2024 2024 2023 Notss Cash flows from operating activities Cash absorbad by operations 22 (125.4%) (95,197) Investing activities Investment income received 5.867 962 Nèt ¢4sh genernted from investlng activlties 5.867 Net cash used In flnanclng actlvltlo$ Net decrease in cash and cash eqUIva￿rtt$ (119.629) {94.235) Cash and ￿sh equivalents at beginning of yeaf 401,640 495,875 Cash and cash equlval•nts at •nd of year 282.011 401,640 13- COMMUNITY MONEY ADVICE LIMITED STATEMENT OF CASH FLOWS (CONTINUED) FOR THE YEAR ENDED 31 MAY2024 Crilical accounting ostimatos and Sudgements In Ihe appli¢ation of the company's acLX)unting p0￿CleS, the trustees are required to make judgements. eslimales and assumptions about the carying amount of assets and liabilits.es that are not readily apparent from other sources. The estimates and ass¢xiated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may dFffer from these estimates. The estimates and undertying assumptions are reviewed on an ongoing basis. ReMsion3 to accounting estimates are recognised in the period in whith the estimate is revised where the rew510n affects only that period. or In the period of the revision and future periods where the revision affects both current and future periods. Accounting policies Charity inforn)ation Community Money Advi￿ Limited is a private o)mpany limited by guarantee incorporated in England and Wales. The registered office is The Bamabas Centre. Longden Coleham. Shrewsbury, Shropshire, SY3 7DN. 2.1 A¢countlng convenllon The finanaal statements have been prepared in accordance with the companls Artides of As$oaalion and Memorandum. the Companies Act 2006 and "Accounting and Repo￿ng by Charities: Statement of Recommended Practice applicable to thariti'es preparing their aco)unts in accordan￿ with the Finan￿81 Reporting Slandard applicable in the UK and Republic of Ireland (FRS 102) (effedive 1 January 2019)" The company is a Public Benefft Entty as defined by FRS 102. The finanoal statements are prepared in slerling, which is the funC￿nal currency of the ￿rnpany. Monetary amounts in these financial statements are rounded lo Ihe nearesl £. The financial statements have been prepared UVKler the historical cost (x)nvenlion. The pnncypal accounting policies adopted are sat out b8kMI. 2.2 Going concern At the time of approwng th8 financial statements. the trustees havé a reasonabl8 èxpectstion that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees Continue to adopt the going concem basis of accounting in preparing the finanaal stalements. 2.3 Charitable funds Unrestricted tunds 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 or grantors as to how they may be used. The putposes and uses of the restTiCted fvnds are set out in the notes to the finanaal statements. 2.4 Incom• Income is recognised when the company is ￿allY entitled to it after any perf0m￿nCe conditions have been mel, the amounts Gan be measured relia￿, and rt is probable that ir￿orne will be receNed. Cash donations are re¢ognised on receipt. Other donations are recognised On￿ the company has been notified of the donation. unless performance conditions require deferral of the amounL Income lax recoverablè in relation to donats'ons received under Gift Aid or deeds of covenant is recognised at the time of the donation. 14- COMMUNITY MONEY ADVICE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY2024 Accountlng pollcl•s {ContInu￿1 Grants, where entillement is not conditional on the delivery of a specfft performance by the chanty. are re￿gnised when the chanty becomes unconditionalty entrlled lo the grant. lthere entitlement is dependent on the fijffilmenl of one or more specified conditions, grants received by the charity are recognised and taken into revenue unless the conditions are within the ¢haritls control and uncertainty exists as to whether the conditions will be fuffilled. 2.5 Expenditure Expenses are induded in the financial statements as they be￿rne receivable or due. Expenses indLKle VAT where appIl￿ble as the company cannot redaim it. 2.6 Cash and cash equivalents Cash and cash equivalents indude cash in hand. deposits held at call with banks, other short-tem liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafls are shown within borrcmngs in cu￿nt liabi1rt￿5. 2.7 Financial instruments The company has elected to appty the wovisions of Se(lion 11 'Basic Financial Instruments, and Seth'on 12 'Olher Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial instruments are recognised in the companys balance sheel wthen the company be￿}MeS party to thé contractual provisions of the instrument. Financtral assets and liabilities are offset, with the net amounts presented in the finanaal statements, whén there is a legalty enforceable right lo sel off the recognised amounts and there is an intention to settle on a net basis or to realise the assel and settle the liability simullaneousty, Basic financial assets Basic finanual assets, whith indude debtors and cash and bank balances, are initially measured al Iransaction price including transa¢tion costs and are subsequentty carried at amortised cost using the effective interest method unless the arrangement ¢onstitutes a ffinancing transaction. where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Finanoal assets dassffied as receivable within one year are not amortÉsed. 2.1 Taxatlon The tharty is an exempt charity within the meaning of 5d)edule 3 of the Chanties Ad 2011 and is considered to pass thè tests set otrt in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charttable company for UK corporation tax purposes. 2.9 Employee benefits The cost of any unused holiday entitlement is recognised in the period in which tha èmKAoyeè's seNices are received. Termination benefits are recognised immediately as an expense when the ￿)rnpany is demonstrably committed lo terminate the employment of an èmployèe or to providè temination benefits. 2.10 Retlrement benefits Payments to defined contribution rets'rement benefft schemes are charged as an expense as they fall due. 15- COMMUNITY MONEY ADVICE LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY2024 Charitable activities Grarrt• Afflllates Conf•r•n¢• Other fees & trdlnlng Income Total 2023 Sales within charitable adivilies 210.854 189,318 126.176 95,737 622,085 690.702 Analysis by fund Unreslricted funds Designated funds R8Stricted funds 189,318 128.176 95,237 410.731 500 210.854 210.854 210.854 189.318 126,176 95,737 622,085 For the year ended 31 May 2023 Unrestricted furnjs Designated funds Restricted funds 155.895 85,250 358,610 599,755 31.378 49 31,378 59.569 59.350 170 59.350 155.895 85.420 390.037 690.702 Income from investments Unrestricted Unrnstrictsd funds funds 2024 2023 Interest receivable 5,867 17- ro￿1￿0¢￿)0￿11n￿ fDOO *)) Op <0 In 0> ) v u> ai ry rji r r rii r In r Thl P- ￿- tr-- O *co* ¢B 03£ tsuF2L)S￿XcLc&￿zme 51.541 6.700 Delarred income is induded tn tha fmancial statements as follows: 2024 2023 Deferred income 15 induded within". Current liabilities 51,541 6.700 Movements in the year. Deferred income at 1 June 2023 Released from previous periods Resources deferred in the year 6.700 (6.700) 51,541 27.455 (2Q.755) Deferred income at 31 May 2024 51,541 6,700 -20- COMMUNITY MONEY ADVICE LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MA Y 2024 14 R•tlr•mont ￿nefft schomes 2024 2023 Definod contribution schemes Charge to profft or loss in respect of defined contribution schemes 13.720 12,147 The company operates a defined contribution pension stheme for all qualifyinj employees. The asseis of the scheme are held separatety from those of the company in an independentty administered fund. 16 Analysis of net assets ￿tween funds Unrestricted Oeslgnatod funds funds Réstrlcted funds Total 2024 2024 2024 2024 Fund balances at 31 May 2024 arn r•pre••ntsd by: Current assetsl{liabililses) 215.469 17.170 10,730 243,369 215.469 17.170 10,730 243,369 Unrnstrlct•d Designated funds fund8 Restiicted funds Total 2023 2023 2023 2023 Fund balances at 31 May 2023 are r*presentèd by: Current assetsl(liabiliti8s) 356.144 49.241 5.807 411,192 356,144 49,241 5.807 411.192 17 Designated funds The unrestricted funds of the charty ￿rnprise Ihe unexpended balar￿e$ of donations and grants vthich are not subject to specific conditions by donors and grantors as to how they may be used. These indude designated fijnds which have been set aside out ol unrestn'cted lund$ by the trustees for specific purposes. Movement in funds Incomlftg R•Sou￿¢S Twansl•rn 8•l•ft￿ al 31 M•y 2024 B•lanc• al Kenya Trust FurKI 16.845 32.396 270 340 (12,5CK)) (8.315) (88) {11.778> 4,527 12.643 49.241 610 {20.815> (11,8661 17,170 21 COMMUNITY MONEY ADVICE LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY2024 18 Restrlctod funds The restricted funds of the charity (x)mprise the unexpended balances of donatK)ns and grants held on trust subject lo specrfic conditions by dorK)rs as to how they may be u5e(l. Movement In lunds B*lane• It Ineoming R•sourc•s 1 Jurn 2023 Trnn*hr* B•l•ne• at 31 May 2024 Trust Fund Cofflmunity Fund Scolland Acts 435 Training 574 1,916 210,854 2.49) 4.241 2,319 180 1,500 (206.6131 (1.264) (1.700) 3,733 (150) 1,5(Kl 5.807 214.650 {209.577) (150) 10.730 Trust Fund To 5UPPOrt ¢enlre8 and clients in finanoal difficLrtty. Communlty Fund Funds received to develop the Connect Centres as an altemalive basis of providing debt advice at a ILxal level. Scottish Funds Provision of Scottish specific services. Acts 435 Funds received to directy meel clients needs Tralnlng Funds received to support the rewrrt8 of CMA'S Level 3 training materials. 19 Events after the reporting date Post year end the organisalion de registered with the Scottish Charities Commission as of June 2024. The continued operational activities of the organisation femain uncharged. -22- COMMUNITY MONEY ADVICE LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2024 20 Related party trnngactlons Trustee Remuneration During the year the L*arity paid remuneration and fees to one of the directors arKI key management personnel of the charity as follows.. 2024 2023 Heather Keates Salaties and wages Employers nalional insurance Employers pension 51.670 5,875 1.550 49.685 5.816 1.477 59,095 56.978 During the year Healher Keates also received in advance a long service award for £1,250. Transactions with related parties During the year the company entered into the fol(Aying transactions with related parties.. Pur¢ha$e of goods 2024 2023 The Fayfe 6,323 5,860 6,323 5,860 The Fayre is a ioint partnership bethen H Keales and her partner T Keates. The payments are in respect lo advertising and graphi¢ design, and are pa￿ on a fair mark8t value. During the year Heather Keats and her spouse donated £240 to the charity. 21 Analysis of changes in net funds The company had no material debt during the year. -23- COMMUNITY MONEY ADVICE LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY2024 22 Cash generated from operntSon8 2024 2023 Def￿1t for the year {167,823) (108.972) Adjustments for. Investment income r8cognised in statement of financial ath'wties (5,867) (962) Movements in working capital.. Decrease in deblors (Decrease) in creditors Increasel(decrease) in deferred income 17,757 (14.404) 44,841 42,551 (7,0591 (20,755) Cash absorbed by operatlons (125.496) (95.197) -24-