Company registration number: 5540011 Charity registration number: 1111611
Citizens Advice East Lancashire
(A company limited by guarantee)
Annual Report and Financial Statements
for the Year Ended 31 March 2023
KM Chartered Accountant 1st Floor, Block C The Wharf Manchester Road Burnley Lancashire BB11 1JG
Citizens Advice East Lancashire
Contents
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' Report | 2 to 5 |
| Independent Examiner's Report | 6 |
| Statement of Financial Activities | 7 |
| Balance Sheet | 8 |
| Statement of Cash Flows | 9 |
| Notes to the Financial Statements | 10 to 16 |
Citizens Advice East Lancashire
Reference and Administrative Details
Trustees Mr B Hobbs Mr D R J Penney Mr P J Kenyon Mr M Abdullah Mr S Ahmed Mr P Laskey Mr M Aslam Mr J M Blackburn Mr H S McGinn Miss A C McIntyre Cllr M Procter Mr P M Manley Mr J N Pilling Miss M Khan-Israeel Registered Office 1st Floor, Block C The Wharf Manchester Road Burnley Lancashire BB11 1JG The charity is incorporated in England. Company Registration Number 5540011 Charity Registration Number 1111611 Bankers Unity Trust Bank Four Brindley Place Birmingham B1 2JB Independent Examiner KM Chartered Accountant 1st Floor, Block C The Wharf Manchester Road Burnley Lancashire BB11 1JG
Page 1
Citizens Advice East Lancashire
Trustees' Report
The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 March 2023.
The charity was formerly known as Burnley & Pendle Citizens Advice Bureau. With effect from 1st July 2023 the activities of Citizens Advice Rossendale & Hyndburn transferred into the charity and the charity became known as Citizens Advice East Lancashire.
Trustees
Mr B Hobbs Mr D R J Penney Mr P J Kenyon Mr M Abdullah Mr S Ahmed Mrs K M Wilson (resigned 1 July 2023) Mr P Laskey Mrs B Foster (resigned 1 May 2022) Mr M Aslam Mr J M Blackburn (appointed 1 July 2023) Mr H S McGinn (appointed 1 July 2023) Miss A C McIntyre (appointed 1 July 2023) Cllr M Procter (appointed 1 July 2023) Mr P M Manley (appointed 1 July 2023) Mr J N Pilling (appointed 1 July 2023) Miss M Khan-Israeel (appointed 1 July 2023)
OBJECTIVES AND ACTIVITIES
Objects
The objects of the Charity as at the date of signing these accounts are to promote any charitable purpose for the benefit of the community in Burnley and Pendle Districts and surrounding areas by the advancement of education; the protection and preservation of health; and the relief of poverty, sickness and distress through the provision of advice and community services. In due course the area of benefit will be expanded to bring in surrounding areas.
Aims
The aims of Citizens' Advice nationally, which are supported and implemented by ourselves, are:
-
To ensure that individuals do not suffer through lack of knowledge of their rights and responsibilities or of the services available to them through an inability to express their needs effectively; and
-
To exercise a responsible influence on the development of social policies and services, both locally and nationally.
Page 2
Citizens Advice East Lancashire
Trustees' Report
The Charity seeks to provide independent, free, confidential and impartial advice to everyone regardless of race, gender, sexuality, disability, nationality, religion or age. In all aspects of its work, the service recognises the positive value of diversity, promotes equality and challenges discrimination.
Activities (during 2022/23)
The Charity has a specialist department for debt, which works towards reducing poverty and distress by providing help in resolving and minimising debt problems.
General advice and specialist appointments are available in Burnley, Nelson, Colne and Barnoldswick.
The Generalist Department comprises both paid and volunteer advisers who are trained to CAB Certificate level to ensure a recognised standard of advice for all clients.
We are also engaged in Universal Credit Support as part of the wider CAB contract for its delivery and augmented by additonal project work and funding from HMRC.
We are committed to thorough and continuing training for volunteers. Volunteer advisers contribute 6 hours a week each and run "drop in" sessions several times a week. Volunteering can also be a stepping stone into employment, rebuilding self-esteem and contributes to the individuals' knowledge and skills.
The Charity works with Citizens Advice Services throughout Lancashire and more widely.
The trustees confirm that we have paid due regard to the Charity Commission guidance on public benefit reporting in deciding the activities the charity undertakes.
ACHIEVEMENTS AND PERFORMANCE
The Charity gives excellent value for money both quantitatively and qualitatively and has been instrumental in resolving some millions of pounds of debt issues, which money comes back into the local economy and is instrumental in ameliorating poverty and distress.
The service is free and confidential. Cumulatively, the Charity’s work makes a significant contribution to improving the well-being of people in Burnley and Pendle.
Statistics are maintained of all advice and help given both for our own use in identifying trends and needs and for our funders to highlight the value they are getting for their money.
The Charity keeps track of key Research & Campaign issues, allowing us to identify and campaign on local issues and contribute to national campaigns. In addition to reporting to the national body, the Charity has raised problems of policy and practice with the County and Borough local authorities and with local offices of Government Departments.
FINANCIAL REVIEW
Principal funding sources for core services were Pendle Borough Council, Burnley Borough Council with project funding from, amongst others, the Money Advice Service (Face to Face), Universal Credit - Help to Claim, HMRC, Awards for All.
A surplus on the general fund of £173,852 is added to reserves brought forward giving a balance of £520,106 at the year end.
Page 3
Citizens Advice East Lancashire
Trustees' Report
This funding supported the objectives of the Charity by enabling it to work towards solutions for people that allow them to progress and benefit in whichever field they have a need, including education, health, relief of poverty through the receipt of benefits or the management of debts. Our work alleviates distress in all its manifestations.
Reserves:
Following the merger in July 2023 the new expanded trustee board is to review reserves and its reserve policy more widely. Closing funds received from Citizens Advice Rossendale and Hyndburn were in excess of £320,000. Added to the closing reserves of ourselves at the year end of over £520,000 the combined reserves are significant.
In addition the charity owns property valued in excess of £100,000 but shown in the accounts at net book value of £14,000.
STRUCTURE, GOVERNANCE & MANAGEMENT
The Charity is a company limited by guarantee, which is governed by its Memorandum and Articles of Association which were first agreed on 18th August 2005, revised on 29 April 2014. The members of the company are the trustees.
The charity is headed by its Trustees, who delegate day to day running of the charity to the Chief Officer and his team.
Appointment of trustees
Burnley Borough Council and Pendle Borough Council are each entitled to appoint two members to the board and we are grateful to them for their contribution to the work of the charity.
Management
The Board of Trustees met six times during the year and although a little less than we would have liked, on each occasion received financial and organisational reports. The board developed and reviewed the Business & Development Plan and continues to oversee the process of Governance and Operational Audit undertaken by the national Citizens Advice charity.
The charity has undertaken a risk assessment and has completed a risk management policy. In an Annual Liaison Visit, the Chair, Treasurer and Chief Officer worked with a representative of CA to produce a full risk assessment which was reported to the Board.
During the course of the year and with the help of the national CAB body a plan was agreed under which Burnley & Pendle CAB would combine operations with its Rossendale & Hyndburn equivelant in the hope of building a more sustainable corporate backdrop for the future of services across the four boroughs of Burnley, Pendle, Rossendale and Hyndburn and hopefully including Ribble Valley in its remit. This happened on 1st July 2023, and over these recent months significant amounts of work has already taken place to combine operations.
Small companies provision statement
This report has been prepared in accordance with the small companies regime under the Companies Act 2006.
Page 4
Citizens Advice East Lancashire
Trustees' Report
The annual report was approved by the trustees of the charity on 9 November 2023 and signed on its behalf by:
......................................... Mr B Hobbs Trustee
Page 5
Citizens Advice East Lancashire
Independent Examiner's Report to the trustees of Citizens Advice East Lancashire
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 March 2023 which are set out on pages 7 to 16.
Respective responsibilities of trustees and examiner
As the charity’s trustees of Citizens Advice East Lancashire (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of Citizens Advice East Lancashire are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner’s statement
Since Citizens Advice East Lancashire's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Association of Charity Independent Examminers, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
-
accounting records were not kept in respect of Citizens Advice East Lancashire as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination; or
-
the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
...................................... Mark Heaton FCCA FCIE DChA KM 1st Floor, Block C The Wharf Manchester Road Burnley Lancashire BB11 1JG
9 November 2023
Page 6
Citizens Advice East Lancashire
Statement of Financial Activities for the Year Ended 31 March 2023
(Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)
| Note Income from: Donations Charitable activities 3 Investment income 4 Other income Total income Expenditure on: Charitable activities Total expenditure Net income Transfers between funds Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 12 |
Unrestricted funds £ 17 141,062 1,004 3,639 145,722 28,130 28,130 173,852 - 173,852 346,254 520,106 |
Restricted funds £ - 612,071 - - 612,071 (585,534) (585,534) 26,537 - 26,537 5,295 31,832 |
Total 2023 £ 17 753,133 1,004 3,639 757,793 (557,404) (557,404) 200,389 - 200,389 351,549 551,938 |
Unrestricted funds £ 72 157,847 335 76 158,330 (90,016) (90,016) 68,314 18 68,332 277,922 346,254 |
Restricted funds £ - 309,034 - - 309,034 (304,218) (304,218) 4,816 (18) 4,798 497 5,295 |
Total 2022 £ 72 466,881 335 76 |
|---|---|---|---|---|---|---|
| 467,364 | ||||||
| (394,234) | ||||||
| (394,234) | ||||||
| 73,130 - |
||||||
| 73,130 278,419 |
||||||
| 351,549 |
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2022 is shown in note 12.
Page 7
Citizens Advice East Lancashire
(Registration number: 5540011) Balance Sheet as at 31 March 2023
| Note Fixed assets Tangible assets 8 Current assets Debtors 9 Cash at bank and in hand Creditors: Amounts falling due within one year 10 Net current assets Net assets Funds of the charity: Restricted income funds Restricted funds Unrestricted income funds Unrestricted funds Total funds 12 |
2023 £ 14,109 14,120 646,585 660,705 (122,876) 537,829 551,938 31,832 520,106 551,938 |
2022 £ 16,109 17,935 460,615 |
|---|---|---|
| 478,550 (143,110) |
||
| 335,440 | ||
| 351,549 | ||
| 5,295 346,254 |
||
| 351,549 |
For the financial year ending 31 March 2023 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
-
The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and
-
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements on pages 7 to 16 were approved by the trustees, and authorised for issue on 9 November 2023 and signed on their behalf by:
......................................... Mr B Hobbs Trustee
Page 8
Citizens Advice East Lancashire
Statement of Cash Flows for the Year Ended 31 March 2023
| Note Cash flows from operating activities Net cash income Adjustments to cash flows from non-cash items Depreciation Investment income 4 Working capital adjustments Decrease/(increase) in debtors 9 (Decrease)/increase in creditors 10 Net cash flows from operating activities Cash flows from investing activities Interest receivable and similar income 4 Net increase in cash and cash equivalents Cash and cash equivalents at 1 April Cash and cash equivalents at 31 March |
2023 £ 200,389 2,000 (1,004) 201,385 3,815 (20,234) 184,966 1,004 185,970 460,615 646,585 |
2022 £ 73,130 2,000 (335) |
|---|---|---|
| 74,795 (720) 13,664 |
||
| 87,739 335 |
||
| 88,074 372,541 |
||
| 460,615 |
All of the cash flows are derived from continuing operations during the above two periods.
Page 9
Citizens Advice East Lancashire
Notes to the Financial Statements for the Year Ended 31 March 2023
1 Charity status
The charity is limited by guarantee, incorporated in England, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.
The address of its registered office is: 1st Floor, Block C The Wharf Manchester Road Burnley Lancashire BB11 1JG
These financial statements were authorised for issue by the trustees on 9 November 2023.
2 Accounting policies
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
The financial statements have been prepared in accordance with 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 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.
Basis of preparation
Citizens Advice East Lancashire meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.
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 the income receivable can be measured reliably.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably.
Page 10
Citizens Advice East Lancashire
Notes to the Financial Statements for the Year Ended 31 March 2023
Charitable activities
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Tangible fixed assets
Individual fixed assets costing £2000 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
| Asset class | Depreciation method and rate |
|---|---|
| Freehold property | 2% on cost |
| Computer equipment | 25% on cost |
| Fixtures and fittings | 25% on cost |
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
Pensions and other post retirement obligations
The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
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Citizens Advice East Lancashire
Notes to the Financial Statements for the Year Ended 31 March 2023
3 Income from charitable activities
| Advice Services Pendle Borough Council Burnley Borough Council Grants received, included in the above, ar Money Advice Services Awards For All Help to Claim HMRC Grants ESF Community Grant Harold & Alice Bridges Charity United Utilities Household Support Fund Social Prescribing |
Unrestricted funds General £ 34,737 61,875 44,450 141,062 e as follows: - - - - - - - - - - |
Restricted funds £ 612,071 - - 612,071 186,845 - 325,620 39,983 - - 10,000 40,000 9,623 612,071 |
Total 2023 £ 646,808 61,875 44,450 753,133 186,845 - 325,620 39,983 - - 10,000 40,000 9,623 612,071 |
Total 2022 £ 345,556 59,450 61,875 |
|---|---|---|---|---|
| 466,881 | ||||
| 163,447 10,000 96,666 38,400 (479) 1,000 - - - |
||||
| 309,034 |
4 Investment income
| Interest receivable | Unrestricted funds General £ 1,004 1,004 |
Total 2023 £ 1,004 1,004 |
Total 2022 £ 335 |
|---|---|---|---|
| 335 |
5 Trustees remuneration and expenses
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
No trustees have received any reimbursed expenses or any other benefits from the charity during the year.
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Citizens Advice East Lancashire
Notes to the Financial Statements for the Year Ended 31 March 2023
6 Staff costs
The aggregate payroll costs were as follows:
| The aggregate payroll costs were as follows: | ||
|---|---|---|
| Staff costs during the year were: Wages and salaries Social security costs Pension costs Other staff costs |
2023 £ 381,246 26,651 9,441 3,262 420,600 |
2022 £ 302,039 12,725 7,345 691 |
| 322,800 |
The monthly average number of persons (including senior management team) employed by the charity during the year expressed as full time equivalents was as follows:
| Advice Administration/management |
2023 No 16 5 21 |
2022 No 12 5 |
|---|---|---|
| 17 |
No employee received emoluments of more than £60,000 during the year.
7 Taxation
The charity is a registered charity and is therefore exempt from taxation.
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Citizens Advice East Lancashire
Notes to the Financial Statements for the Year Ended 31 March 2023
8 Tangible fixed assets
| Cost At 1 April 2022 At 31 March 2023 Depreciation At 1 April 2022 Charge for the year At 31 March 2023 Net book value At 31 March 2023 At 31 March 2022 9 Debtors Prepayments Accrued income 10 Creditors: Trade creditors Other creditors Accruals |
Land and buildings £ 50,013 |
Furniture and equipment £ 22,927 22,927 22,927 - 22,927 - - 2023 £ 8,140 5,980 14,120 2023 £ 118,635 2,141 2,100 122,876 |
Furniture and equipment £ 22,927 22,927 22,927 - 22,927 - - 2023 £ 8,140 5,980 14,120 2023 £ 118,635 2,141 2,100 122,876 |
Total £ 72,940 72,940 56,831 2,000 58,831 14,109 16,109 2022 £ 3,583 14,352 |
|
|---|---|---|---|---|---|
| 50,013 | 22,927 | ||||
| 33,904 2,000 |
22,927 - |
||||
| 35,904 | 22,927 | ||||
| 14,109 | - | ||||
| 16,109 | - | ||||
| 2023 £ 8,140 5,980 14,120 2023 £ 118,635 2,141 2,100 122,876 |
|||||
| 17,935 | |||||
| 2022 £ 135,743 1,225 6,142 |
|||||
| 143,110 |
11 Pension and other schemes
Defined contribution pension scheme
The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £9,441 (2022 - £7,345).
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Citizens Advice East Lancashire
Notes to the Financial Statements for the Year Ended 31 March 2023
| 12 Funds Unrestricted funds General Fund Fixed Assets Restricted funds Money Advice Service Awards for All Help to Claim HMRC Grants United Utilities Household Support Fund Social Prescribing Total funds Unrestricted funds General Fund Fixed Assets Restricted funds Money Advice Service Awards for All Help to Claim HMRC Grants ESF Community Grant Harold & Alice Bridges Charity Total funds |
Balance at 1 April 2022 £ Incoming resources £ Resources expended £ Balance at 31 March 2023 £ 330,145 145,722 30,130 505,997 16,109 - (2,000) 14,109 346,254 145,722 28,130 520,106 - 186,845 (186,845) - 3,920 - - 3,920 - 325,620 (325,620) - 1,375 39,983 (33,446) 7,912 - 10,000 (10,000) - - 40,000 (20,000) 20,000 - 9,623 (9,623) - 5,295 612,071 (585,534) 31,832 351,549 757,793 (557,404) 551,938 Balance at 1 April 2021 £ Incoming resources £ Resources expended £ Transfers £ Balance at 31 March 2022 £ 259,813 158,330 (88,016) 18 330,145 18,109 - (2,000) - 16,109 277,922 158,330 (90,016) 18 346,254 - 163,447 (163,447) - - - 10,000 (6,080) - 3,920 - 96,666 (96,666) - - - 38,400 (37,025) - 1,375 497 (479) - (18) - - 1,000 (1,000) - - 497 309,034 (304,218) (18) 5,295 278,419 467,364 (394,234) - 351,549 |
Balance at 31 March 2023 £ 505,997 14,109 |
Balance at 31 March 2023 £ 505,997 14,109 |
|---|---|---|---|
| 520,106 | |||
| - 3,920 - 7,912 - 20,000 - |
|||
| 31,832 | |||
| 551,938 | |||
| Balance at 31 March 2022 £ 330,145 16,109 |
|||
| 346,254 | |||
| - 3,920 - 1,375 - - |
|||
| 5,295 | |||
| 351,549 |
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Citizens Advice East Lancashire
Notes to the Financial Statements for the Year Ended 31 March 2023
13 Analysis of net assets between funds
| 13 Analysis of net assets between funds | |||
|---|---|---|---|
| Tangible fixed assets Current assets Current liabilities Total net assets Tangible fixed assets Current assets Current liabilities Total net assets |
Unrestricted funds General £ 14,109 628,873 (122,876) 520,106 Unrestricted funds General £ 16,109 473,255 (143,110) 346,254 |
Restricted funds £ - 31,832 - 31,832 Restricted funds £ - 5,295 - 5,295 |
Total funds at 2023 £ 14,109 660,705 (122,876) |
| 551,938 | |||
| Total funds at 2022 £ 16,109 478,550 (143,110) |
|||
| 351,549 |
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