## **ADVICE SERVICES ALLIANCE**
## **UNAUDITED TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
**Company Number: 3533317 (England and Wales) Charity Number: 1112627**
**ADVICE SERVICES ALLIANCE**
## **Contents**
## **Page**
|Legal and administrative information|1|
|---|---|
|Trustees’ report|2|
|Independent Examiner’s report|12|
|Statement of financial activities|13|
|Balance sheet|14|
|Principal accounting policies|15|
|Notes to the financial statements|18|
## **ADVICE SERVICES ALLIANCE**
## **Legal and administrative information**
**Trustees** Martin Barnes Julie Bishop Sean Conroy Leanne Devine Sabrina Dubash Ruth Hayes Kani Kundu John Roberts James Sandbach Alasdair Stewart Carol Storer **Co-opted Board Members:** Cassandra Harrison (resigned October 2021) Kahra Wayland-Larty (October 2021, resigned May 2022) Fran McSweeney (March 2022)
**Officers Chair** Ruth Hayes **Vice Chair** John Edwards **Treasurer** John Roberts **Company Secretary** Lindsey Poole **Chief Executive** Lindsey Poole **Staff** Dawn Draper Rachel Russell (Resigned September 2021) Lowri Griffiths (December 2021-March 2022) **Consultants** Tessa Awe Trudi Burton Anita Sangha **Patron** Lord Low of Dalston **Company Number** 3533317 (England and Wales) **Charity Number** 1112627 **Registered Office** Lincoln House, 296-302 High Holborn London WC1V 7JH **Independent Examiner** Catherine Biscoe Buzzacott LLP 130 Wood Street London EC2V 6DL **Solicitors** Russell-Cooke 2 Putney Hill Putney London SW15 6AB **Bankers** Unity Trust Bank Plc Nine Brindley Place Birmingham B1 2HB
Page 1
## **ADVICE SERVICES ALLIANCE**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2022**
The Trustees of Advice Services Alliance (“ASA”) present their report and the financial statements for the year ended 31 March 2022.
The report has been prepared in accordance with Part 8 of the Charities Act 2011 and equates to a directors’ report for the purposes of company legislation.
The financial statements comply with current statutory requirements, the memorandum and articles of association and have been prepared in accordance with the accounting policies on pages 15 to 17 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 United Kingdom and Republic of Ireland (FRS 102).
The Trustees have complied with the duty in section 4 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission when reviewing our aims and objectives and in planning our future activities.
## **Objectives and activities**
## _**Charitable objects**_
The Charitable objects of the Advice Services Alliance as adopted on the 28th February 2020 by special resolution are as follows:
(1) to promote for the benefit of the public the parts of the Voluntary Sector which provide advice services by providing training, services, support and assistance to enable Voluntary Sector advice organisations to provide high quality advice services and the public to access those services and by promoting co-operation between Voluntary Sector advice organisations and statutory authorities and other bodies;
(2) to advance education for the benefit of the public in particular by the development of high quality advice services and by the provision of educational material including educational resources relating to advice services and an information service on the internet.
## **Activities**
The activities of the Advice Services Alliance are:
‘”To promote voluntary sector advice services by providing members services, support and assistance, to enable advice organisations to provide high quality services and the public to access those services, by promoting cooperation between voluntary sector advice organisations, statutory authorities and other bodies. To advance education of the public through the development of high quality advice.”
Page 2
**ADVICE SERVICES ALLIANCE**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2022**
## **Achievements and performance**
The ASA Board of Trustees held their annual strategy day at the end of February 2022 which was held on-line due to the Covid19 restrictions still being in place. The impact of the Covid 19 pandemic on people seeking advice and on advice centres were clearer than the previous years and the trustees were able to bring their experience of the past years work into the planning process.
This year represented the third year in our three year transformation strategy representing the phase of consolidation of purpose and activities. The Trustees acknowledged that the uncertainty which still existed around the pandemic had impacted on the completion of the transformation. The Trustees agreed the summary of the ASA Strategic Aims are to ensure that:
- Best advice given to clients
- Inequalities challenged
- Amplifying voices of the sector
- Learning and sharing ideas
- Client journeys improved
The annual objectives for 2021-2022 were agreed to be:
- **Promote the whole advice sector** with the public, with government, with funders and with other key stakeholders
- **Represent** the body of the advice sector where independent and impartial voice is required
- Provide a trusted and **impartial point of contact** for stakeholders seeking to engage with the advice sector
- Support and **engage with others** (including the voluntary sector, the pro bono sector, government and funders) whose work will benefit the whole advice sector
- Run an **annual conference** to bring the advice sector together to share learning and promote partnership and collaboration between services,
- Provide **other events** (such as regional forums, training) in relation to cross sector issues and to raise the profile of the advice sector, as identified by our membership
- Act as an ‘ **evidence champion’** for the sector on issues relating to the provision of advice services, promoting research and sharing evidence on the sector
- Provide a ‘portal’ for **accessing information about the advice sector** and the provision of advice including quality assurance
- Undertake **projects and provide services** where there is a clear cross sector purpose and benefit.
Page 3
**ADVICE SERVICES ALLIANCE**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2022**
## **Achievements and performance**
The main achievements of the year April 2021 to March 2022 were as follows:
## **Engagement in the Pilot Light Programme**
We applied and were accepted to the Pilot Light Programme. We were allocated a team from Barclays Bank who worked with us to review our funding strategy and our business model with a view to growing the ASA to the next level. Their report indicated that we should review how we charge for the licence fee for the AQS and move to a ‘per adviser’ model rather than a ‘per advice organisation’. Initial conversations have begun with the Advice services regarding this change and will be developed further in the next financial year. The help from the Barclays team was invaluable and created a space to consider the organisation afresh.
## **Represent the Advice Sector**
The ASA continues to promote and represent the advice sector at strategic level. We hold a place on the Access to Justice Foundation Board of Trustees (currently held by Carol Storer), we sit on the Administrative Justice Council and chair the Advice Sector Panel, we attend the Independent Advice Providers Forum in Wales, we sit on the Litigants in Person Support Strategy Advisory Group and we have been engaged with the Greater London Authority on their advice sector strategy work. In December 2021, we represented the UK advice sector at an OECD event looking at access to justice. This has led to contact with practitioners in other jurisdictions such as the Tribunal Services in Ontario, Canada.
## **SCARE and Access to Justice Roundtables**
The annual meeting of Advice Research and Evaluation Practitioners was held in November 2021, albeit on line. We also joined the Steering Group for the Access to Justice Roundtables and helped to direct the content of these meetings.
## **Social Welfare Legal Advice for People with Convictions**
A new project was established with the Policy Evaluation and Research Unit at Manchester Metropolitan University to look at the work in relation to social welfare legal advice and people with convictions. The report will be produced by the end of July 2022.
## **Black, Asian and Minority Ethnic Advice Network**
We will continue to work towards developing an active network of advice organisations representing Black and Ethnic Minority communities. The work is funded by Trust for London and is project managed by consultant Tessa Awe. This is an important piece of work if the lessons from #charitysowhite and Black Lives Matter are not to be forgotten.
## **Engagement in the Nuffield and British Academy Programme: Understanding Communities**
The ASA was invited to apply for a place on the Understanding Communities programme, a project run on-line over the autumn of 2021, bringing together academics, practitioners and researchers interested in developing knowledge on communities. The programme led to the development of a proposal in conjunction with the University of Bangor, the University of Exeter, Greater Manchester Council for Voluntary Organisations to investigate the relationship between advice services, people’s help seeking behaviours and strong cohesive communities. The project also had engagement from the Ministry of Justice Early Legal Support Team. The bid was successful and the work will commence in the summer of 2022.
Page 4
**ADVICE SERVICES ALLIANCE**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2022**
## **Achievements and performance** (continued)
## **Review of the Advice Quality Standard**
- As a result of the shift to on line delivery and other changes, the Project Management Committee agreed to undertake a major review of the Advice Quality Standard (v4). We appointed a consultant, Trudi Burton to help with the task and consulted across all major AQS stakeholders. Trudi produced a draft and the introduction of the new standard will take place at the end of 2022. We are very grateful to all the advice practitioners and to our quality colleagues in AgeUK, Citizens Advice, Recognising Excellence, the Money and Pensions Service and the Welsh Government for all the comments and suggestions made during the review. Work to develop an entry level AQS standard will progress in the next financial year.
## **Office Move**
In December 2021, we finally said goodbye to our old colleagues at AgeUK Tavis House and moved to our new desk space with our pro bono colleagues at Lincoln House. We have not used the desks as much as we would have liked, but have been made to feel very welcome.
## **Staff Team**
We would like to pay tribute to the staff team; to Dawn Draper who has stoically continued her quality work despite the many challenges of Covid19, to Rachel Russell who completed her law studies and left us in September 2021 for the advice sector ‘proper’, and to Lowri Griffiths who joined temporarily around Christmas to help out with some crucial admin. Our thanks also go to the Project Management Committee who voluntarily give up their time to help us ensure the AQS is delivered to the highest possible standard.
We have been helped enormously by the support of some excellent consultants: Samuel Tsipotey, Tessa Awe, Anita Sandhu and Trudi Burton. We were fortunate to find Mandy Davies in March 2022 who has been providing invaluable virtual administrative assistance which has made an incredible difference to our productivity. Without our people we are nothing and all our achievements belong to you.
Page 5
**ADVICE SERVICES ALLIANCE**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2022**
## **Financial review**
## **Financial report for the year**
The charity had expenditure on unrestricted funds of £84,394 (2021 – £76,130) and £94,340 of income on unrestricted funds (2021 – £88,217) which resulted in a surplus for the year of £9,946 (2021 –surplus of £12,117). Together with the accumulated surplus brought forward from previous years, the charity now has an accumulated surplus on unrestricted funds in the sum of £128,545 (2021 – £118,599).
The charity received £20,100 of restricted funding (2021 - £47,714 for two projects) for one project, as detailed in note 10. The project was ongoing at 31 March 2022 and was completed in July 2022.
## _**Reserves policy**_
The trustees have established a policy whereby the charity’s ‘free’ reserves, being total unrestricted funds excluding designated funds, should be between three and six months of the charity’s operational expenditure, in order to provide the charity with sufficient working capital to fund its existing charitable commitments . Based on the financial performance for 2021/22, free reserves should be in the range of £28,000 and £56,000.
At this level, the Trustees feel that they would be able to continue the activities of the charity in the event of a significant drop in funding. In such circumstances, the Board would consider how funding would be replaced or activities changed. At present the free reserves as represented by the General Fund amount to £83,545 and are in excess of the upper range set by the Trustees.
## _**Designated funds**_
The funds of the charity include the following designated funds that have been set aside out of unrestricted funds by the Trustees for a specific purpose.
- The staff costs fund has been set up to provide for unexpected staff costs arising from redundancy, maternity and long term sickness, and to enable the organisation to be able to continue to provide its services by engaging temporary staff.
- The computer upgrading fund has been set aside to ensure that the quality of computer equipment is maintained and has been assigned for purposes of all computer equipment including software upgrades, hardware, plus printers and other associated equipment.
- The website development fund relates to the requirement to maintain two up-to-date websites with maximum functionality. To achieve this, the websites need to be redesigned on a regular basis and occasionally more frequently in emergencies for example website crashes.
The amount of the fund and movements in the year are shown in note 10 in the accounts.
## **Fund raising**
The charity does not fundraise directly with individuals and therefore is not registered with the Fundraising Regulator. No fundraising activities are undertaken.
## _**Investment policy and performance**_
Cash reserves are monitored and any funds not required to fund current operations will be held in a high-interest deposit account.
Page 6
**ADVICE SERVICES ALLIANCE**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2022**
## **Structure, governance and management**
## _**Constitution**_
Advice Services Alliance is constituted as a charity and a company limited by guarantee. Advice Services Alliance governing document is its Memorandum and Articles of Association which was recently updated and approved by the Board of Trustees on 28 February 2020. The makes a clear distinction between the membership and the Board of Trustees in order to avoid real or perceived conflicts of interest. Member organisations do not automatically gain seats on the Board, although member organisations are entitled to nominate people to stand as Trustees.
## _**Membership**_
Advice Services Alliance was established in 1980 and is the umbrella body for voluntary advice and information services. Our members are national networks for independent advice services in England and Wales, some of which also cover other countries within the UK. Together, the members represent some 1,800 advice organisations, most of which provide services locally. The membership for the year 2021-2022 comprised of the following network bodies:
- Age UK
- Citizens Advice
- Law Centres Network
- Macmillan Cancer Support
- Shelter
- Shelter Cymru
- Youth Access
## _**Relationship with members**_
Advice Services Alliance works closely with its member organisations in a number of ways:
- consults members on policy proposals and initiatives relating to the provision of advice services;
- represents members’ views in discussions with government, funders of advice services and other organisations concerned with advice provision;
- works with members, including through working groups and day-to-day contact with policy, development and managerial staff of the networks;
- provides information and policy advice to members; and
- provides some direct services to advice organisations belonging to member networks.
This year, our contact with members has primarily focused on the impact of Covid19 on the sector and the issues this presents to our clients and to our communities’ recovery from the pandemic.
Page 7
**ADVICE SERVICES ALLIANCE**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2022**
## **Structure, governance and management** (continued)
## _**Risk management**_
The Trustees have assessed the major risks to which Advice Services Alliance is exposed and this is presented in the form of a Risk Assessment document. The key risk for all voluntary organisations during this year was the impact of the global pandemic on our clients, our services, our communities and on our ability to raise funds, particularly during the recovery period. For ASA, contracts regarding the Manchester Conference which was cancelled due to Covid19 in 2020 were held in abeyance and included cancellation clauses that if invoked would result in a financial loss to ASA. However, the Manchester Conference is planned to take place in late 2022 and the risk of the cancellation has receded.
The other main risks which we had identified in previous years still remain. These are:
- Loss of key personnel that would severely limit the ability to perform activities and meet objectives;
- Loss of income, particularly unrestricted income based on Advice Quality Standard licence fees; and
- Catastrophic failure of IT systems including lap tops and access to internet (websites, cloud based storage etc).
The Board review the Risk Assessment on a quarterly basis and adjust strategy accordingly including reviewing the mitigating actions. For the three risks identified here, the following mitigation is in place:
- Designated funds have been assigned to cover the cost of the Chief Executive’s salary and her replacement during an unexpected long absence. Involvement of Trustees in the business plan and good quarterly financial reporting ensures Trustees are well informed of work plans and work progress.
- A priority of the Chief Executive is to focus on growth within the Advice Quality Standard by increasing the numbers of holders and initiate new products and processes to support the development of the Standard.
- Strong back up systems are already in place for IT, together with procedures to ensure IT support contracts are in place and that IT equipment is renewed on a regular basis, prior to need.
The Board is satisfied that there are adequate systems in place to mitigate exposure to the main risks.
## _**Key management personnel**_
The Trustees consider that the Board of Trustees and the Chief Executive comprise the key management personnel in charge of directing and controlling, running and operating the charity on a day to day basis.
The Trustees give their time freely and no trustees received remuneration in the year (2021 - £nil).
The pay of the Chief Executive is reviewed annually. The review is undertaken by the Trustees at the end of the financial year. Any changes to pay and benefits are determined by reference to average local authority pay settlements.
Page 8
**ADVICE SERVICES ALLIANCE**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2022**
## _**Structure, governance and management** (continued)_
## _**Trustees**_
In accordance with the Articles of Association, each member has the right (but not an obligation) to appoint two Trustees to the organisation. The Trustees have the power to appoint co-opted Trustees.
The Trustees perform the role of Directors in company law and are the Trustees in charity law. The Trustees who served during the year and to the date of this report were:
## **Trustee**
**Appointed/Resigned in the period**
Martin Barnes (independent trustee) Julie Bishop(member representative LCN) Sean Conroy (member representative Macmillan) Leanne Devine (member representative Shelter) Sabrina Dubash Independent trustee Appointed 9 December 2021 John Edwards (member representative, AgeUK) Resigned 30 June 2022 Ruth Hayes (indépendant trustee) Kani Kundu (independent trustee) Appointed 9 December 2021 John Roberts (independent trustee) James Sandbach (independent trustee) Appointed 9 December 2021 Alasdair Stewart (member representative AgeUK) Appointed 30 June 2022 Carol Storer (independent trustee) Appointed 9 December 2021 Cassandra Harrison (member representative Youth Access) Resigned December 2021 Kahra Wayland-Larty (member representative Youth Access) Appointed 9 December 2021, resigned 30 June 2022
## _Trustee training and induction_
Trustees are inducted by the Board and the Advice Services Alliance Chief Executive, who together provide induction sessions as appropriate. Most Trustees are either senior staff in organisations providing advice services (some of which are also members of the Advice Services Alliance) or independent trustees with a strong personal or professional interest in advice work. Most trustees have worked closely with Advice Services Alliance in the past and are therefore familiar with the work of the organisation when they join the Board.
## _Officers_
The Trustees must appoint one of themselves as Chair of the organisation. The Trustees appointed Ruth Hayes as Chair in March 2020. The Trustees may also appoint one of themselves as Vice-Chair, and may appoint a Treasurer or other officers. The Trustees appointed John Roberts as Treasurer in December 2016. The Trustees must appoint a Secretary, who need not be a Trustee. The Company Secretary is Lindsey Poole.
## _Decision making_
The Board of Trustees meets quarterly, and is responsible for the governance and strategic management of the organisation. This includes:
- setting overall objectives for the organisation;
- identifying priority areas for the work of the organisation;
- taking policy decisions on issues likely to have a major impact on the organisation or its member networks; and
- approving and monitoring the organisation’s budget.
Page 9
**ADVICE SERVICES ALLIANCE**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2022**
## **Structure, governance and management** (continued)
## **Trustees** (continued)
_Decision making_
Responsibility for the operational management of the organisation is delegated to the Chief Executive. This includes responsibility for:
- financial management;
- planning, provision and management of services to members and other activities;
- consultation with members on policy matters; and
- the content of policy responses, reports, briefings and other published materials.
The Chief Executive’s delegated decision making powers are exercised in accordance with agreed policies, procedures and protocols (for example relating to financial management and working with members).
Page 10
**ADVICE SERVICES ALLIANCE**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2022**
## _**Statement of trustees’ responsibilities**_
The trustees (who are also directors of Advice Services Alliance for the purposes of company law) are responsible for preparing the trustees’ report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the income and expenditure of the charitable company for that period.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
The trustees’ report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies including the exemption from preparing a strategic report.
Signed on behalf of the trustees by:
Trustee
Approved by the trustees on 7 December 2022
Page 11
**ADVICE SERVICES ALLIANCE**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF ADVICE SERVICES ALLIANCE**
I report to the charity trustees on my examination of the financial statements of the charitable company for the year ended 31 March 2022.
## **Responsibilities and basis of report**
As the trustees of the charitable company and also its directors for the purposes of company law, you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006.
Having satisfied myself that the financial statements of the charitable company are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of your charity’s financial statements as carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
## **Independent examiner’s statement**
I have completed my examination. I confirm that no matters have come to my attention in connection with my examination giving me cause to believe in any material respect:
- accounting records were not kept in respect of the charitable company as required by section 386 of the Companies Act 2006; or
- the financial statements do not accord with those records; or
- the financial statements do not comply with the accounting requirements of section 396 of the Companies Act 2006 other than any requirement that the financial statements give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or
- the financial statements have not been prepared in accordance with the methods and principles of the for “Accounting and Reporting by Charities: the 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)”
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.
Catherine Biscoe Buzzacott LLP Chartered Accountants 130 Wood Street London EC2V 6DL
Date: 21 December 2022
Page 12
**ADVICE SERVICES ALLIANCE**
## **STATEMENT OF FINANCIAL ACTIVITIES**
## **(Including Income and Expenditure Account)**
## **For the year ended 31 March 2022**
|Notes|
**Unrestricted**
**funds**
**£**|
**Restricted**
**funds**
**£**|**Year to**
**31 March**
**2022**
**Total**
**£**|Unrestricted
funds
£|Restricted
funds
£|Year to
31 March
2021
Total
£|
|---|---|---|---|---|---|---|
|**Income**
Charitable activities
1
**Total income**
**Expenditure**
Charitable activities
2
**Total expenditure**
**Net income / (expenditure) for the**
**year**
**Net movement in funds**
**Balance brought forward**
at 1 April 2021
**Balance at 31 March 2022**
10|
**94,340**|**20,100**|**114,440**|88,217|47,714|135,931|
||**94,340**|**20,100**|**114,440**|88,217|47,714|135,931|
||
**84,394**|**20,100**|**104,494**|76,130|47,684|123,814|
||**84,394**|**20,100**|**104,494**|76,130|47,684|123,814|
||**9,946**|**—**|**9,946**|12,117|—|12,117|
||**9,946**
**118,599**|**—**
**—**|**9,946**
**118,599**|12,117
106,482|—
—|12,117
106,482|
||
**128,545**|**—**|**128,545**|118,599|—|118,599|
All activities derive from continuing operations.
All recognised gains and losses are included in the statement of financial activities.
Page 13
## **ADVICE SERVICES ALLIANCE**
## **Balance sheet 31 March 2022**
|Notes|**31 March**
**2022**
**£**|31 March
2021
£|
|---|---|---|
|**Current assets**
Debtors
8
Cash at bank and in hand
**Creditors**: amounts falling due within one year
9
**Net assets**
**The funds of the charity:**
**Funds**
Restricted funds
Unrestricted funds
. Designated funds
. General fund
10|**40,602**
**108,216**|18,022
119,472|
||**148,818**
**(20,273)**|137,494
(18,895)|
||**128,545**|118,599|
||**—**
**45,000**
**83,545**|—
45,000
73,599|
||**128,545**|118,599|
For the year ended 31 March 2022, the company was entitled to exemption from audit under section 477 of the Companies Act 2006, relating to small companies.
- a. Members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
- b. The trustees, as directors, acknowledge their responsibility for:
- i. ensuring the company keeps accounting records which comply with section 386 of the Companies Act 2006, and
- ii. preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year, and of its profit or loss for the financial year, in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act relating to financial statements, so far as applicable to the company.
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime as set out in Part 15 of the Companies Act 2006.
Approved by the board of trustees and signed on its behalf by:
Trustee
Company registration number 3533317 (England and Wales) Approved on 7 December 2022
Page 14
**ADVICE SERVICES ALLIANCE**
## **Principal accounting policies 31 March 2022**
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below.
## **Basis of preparation**
These financial statements have been prepared for the year to 31 March 2022.
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 United Kingdom and Republic of Ireland (FRS 102) (Charities SORP FRS 102) and the Companies Act 2006. The financial statements have been prepared under the historical cost convention unless otherwise stated in the relevant accounting policies below.
The charity constitutes a public benefit entity as defined by FRS 102.
The financial statements are presented in sterling, the charity’s functional currency, and are rounded to the nearest pound.
## **Critical accounting estimates and areas of judgement**
Preparation of the accounts requires the Trustees’ and management to make significant judgements and estimates.
Other than noted in the “assessment of going concern” the Trustees do not consider that there are any sources of estimation uncertainty or key judgements made in the preparation of the financial statements.
## **Assessment of going concern**
The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The Trustees have made this assessment in respect to a period of one year from the date of approval of these financial statements.
An immediate impact of the global coronavirus pandemic was the furlough of staff and a temporary loss of income however the trustees are satisfied that the business continuity measures put in place from 2020/21 onwards, together with the charity’s cash reserves, have allowed the charity to continue to operate and the Trustees have not identified any material uncertainties relating to events or conditions that may cast doubt on the charity’s ability to continue as a going concern.
## **Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Page 15
**ADVICE SERVICES ALLIANCE**
## **Principal accounting policies 31 March 2022**
## **Income**
Income from charitable activities includes income received under contracts for the provision of services and grant funding which is subject to specific performance conditions. Income from the provision of services is recognised as earned as the related services are provided and is stated after discounts and net of Value Added Tax.
Grant income is recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability. Grant income from charitable activities is only deferred when:
- The donor or grantor specified that the grant or donation must only be used in future accounting periods; or
- The donor or grantor has imposed conditions which must be met before the company has unconditional entitlement.
Training and subscription income is deferred when received in advance of the training taking place or the subscription being used.
License income represents an assignment of rights for a fixed fee and permits the licensee to exploit those rights freely. The charity, as licensor, has no remaining obligations to perform under the terms of the license agreement and revenue is recognised at the time the license is sold.
Gifts in kind and donated services are only recognised when the amount can be measured with reasonable certainty.
## **Expenditure**
Expenditure is recognised once there is a legal and constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
Expenditure on charitable activities comprises:
- a. Costs of generating funds incurred in attracting voluntary income, and those incurred in trading activities that raise funds.
- b. The direct and support costs relating to charitable activities.
- c. Governance costs include the cost of an Independent Examination of the statutory financial statements, the costs of trustees meetings and the cost of any legal advice to trustees on governance or constitutional matters.
- d. Support costs include central functions and have been allocated to activity cost categories on the basis of staff involved in the activity.
- e. The amount of any unrecoverable Value Added Tax is charged to the activity on which it is incurred.
## **Pensions**
The charity operates a group personal pension scheme for its employee and contributes to the personal pension scheme. The pension charge, based on 6% of gross salary represents the amounts payable by the charity to the funds in respect of the year.
Page 16
## **ADVICE SERVICES ALLIANCE**
## **Principal accounting policies 31 March 2022**
## **Financial instruments**
The charity only holds basic financial instruments as defined in FRS102. The financial assets and financial labilities and their measurement basis is as follows:
_Financial assets_ –other debtors and accrued income are basic financial instruments and are debt instruments measured at amortised cost as detailed in note 8. Prepayments are not financial instruments.
_Cash at bank_ – is classified as a basic financial instrument and is measured at face value.
_Financial liabilities –_ accruals are financial instruments and are measured at amortised cost as detailed in note 9. Taxation and social security are not included in the financial instrument disclosure definition.
## **Debtors**
Other debtors are initially recognised at their settlement amount and subsequently at amortised cost or their recoverable amount. Impairment provisions are recognised when there is objective evidence, such as significant financial difficulties on the part of the counterparty or default or a significant delay in payment, that the charity will be unable to collect the amount due.
Prepayments and accrued income are valued at the amount prepaid.
## **Cash at bank and in hand**
Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.
## **Creditors and provisions**
Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt.
Page 17
## **ADVICE SERVICES ALLIANCE**
## **Notes to the financial statements 31 March 2022**
## **1. Income from charitable activities**
||**Unrestricted**
**funds**
**£**|**Restricted**
**funds**
**£**|**2022**
**£**|Unrestricted
funds
£
—
2,225
72,720
—
—
13,272
88,217|Restricted
funds
£
28,524
—
—
—
19,190
—
47,714|2021
£
28,524
2,225
72,720
—
19,190
13,272
135,931|
|---|---|---|---|---|---|---|
|Peer Review
Membership
Quality Monitoring
Skills & Workplace
Project
BAME advice project
Covid-19 Grants
Miscellaneous income|**—**
**3,650**
**80,271**
**2,500**
**—**
**7,819**
**100**|**—**
**—**
**—**
**—**
**20,100**
**—**
**—**|**—**
**3,650**
**80,271**
**2,500**
**20,100**
**7,819**
**100**||||
|**Total funds**|**94,340**|**20,100**|**114,440**||||
Covid 19 grants represent furlough income.
Donated services: during the year the charity received business advice and services as part of the Pilot Light Programme from Barclays Bank Plc. These services were donated and their value cannot be measured with sufficient reliability to be included in the financial statements.
## **2. Expenditure on charitable activities**
|**Expenditure on charitable activities**|||||
|---|---|---|---|---|
||**Fees and**
**salaries**
**£**|**Direct**
**costs**
**£**|**Support**
**costs**
**£**|**2022**
**£**|
|Membership
Quality Monitoring
Design and development
BAME Advice Project
External Stakeholders
**Total funds**|**1,217**
**51,421**
**6,084**
**13,225**
**1,217**|**—**
**46**
**—**
**1,628**
**—**|**456**
**21,216**
**2,281**
**5,247**
**456**|**1,673**
**72,683**
**8,365**
**20,100**
**1,673**|
||**73,164**|**1,674**|**29,656**|**104,494**|
||Fees and
salaries
£|Direct
costs
£|Support
costs
£|2021
£|
|Peer Review
Membership
Quality Monitoring
Design and development
BAME Advice Project
External Stakeholders
Website development costs
Total funds|19,575
11,957
23,691
5,247
12,370
14,495
—|—
—
1,120
—
525
—
—|8,230
5,144
9,809
3,060
—
6,119
2,472|27,805
17,101
34,620
8,307
12,895
20,614
2,472|
||87,335|1,645|34,834|123,814|
|||**Direct**
**costs**
**£**|**Support**
**costs**
**£**|**2022**
**£**|
|**Allocated between:**|**Fees and**
**salaries**
**£**||||
|Unrestricted funds
Restricted funds|**59,939**
**13,225**|**46**
**1,628**|**24,409**
**5,247**|**84,394**
**20,100**|
||**73,164**|**1,674**|**29,656**|**104,494**|
|Allocated between:
Unrestricted funds||Direct
costs
£|Support
costs
£|2021
£|
||Fees and
salaries
£||||
||53,151|1,120|21,859|76,130|
Page 18
## **ADVICE SERVICES ALLIANCE**
## **Notes to the financial statements 31 March 2022**
|Restricted funds|34,184|525|12,975|47,684|
|---|---|---|---|---|
||87,335|1,645|34,834|123,814|
## **3. Support costs**
Support costs are allocated to the projects or activity on the basis of staff and consultants involved in the projects or activity.
||**General**
**office**
**£**|**Premises**
**costs**
**£**|**Governance**
**costs**
**£**|**Support**
**staff**
**costs**
**£**|**2022**
**£**|
|---|---|---|---|---|---|
|Membership
Quality Monitoring
Design and development
Peer review
External Stakeholders
Website development costs
**2022 Total funds**|**182**
**910**
**2,093**
**8,465**
**182**
**—**|**31**
**153**
**352**
**1,422**
**31**
**—**|**56**
**282**
**649**
**2,624**
**56**
**—**|**187**
**936**
**2,153**
**8,705**
**187**
**—**|**456**
**2,281**
**5,247**
**21,216**
**456**
**—**|
||**11,832**|**1,989**|**3,667**|**12,168**|**29,656**|
||General
office
£|Premises
costs
£|Governance
costs
£|Support staff
costs
£|2021
£|
|---|---|---|---|---|---|
|Membership
Quality Monitoring
Design and development
Peer review
External Stakeholders
Website development costs
2021 Total funds|2,108
3,600
1,245
3,349
2,490
2,472|320
654
191
515
382
—|467
956
280
751
559
—|2,249
4,599
1,344
3,615
2,688
—|5,144
9,809
3,060
8,230
6,119
2,472|
||15,264|2,062|3,013|14,495|34,834|
Governance costs included within support costs consist of:
||**Unrestricted**
**funds**
**£**
**Restricted**
**funds**
**£**
**2022**
**£**
**2,798**
**602**
**3,400**
**221**
**48**
**269**
**3,019**
**650**
**3,669**|Unrestricted
funds
£
Restricted
funds
£
3,000
—
13
—
3,013
—|2021
£|
|---|---|---|---|
|Independent
examiner’s fees
Other
**Total funds**|||3,000
13|
||||3,013|
## **4. Grants receivable**
Grants receivable in the year were:
||**2022**
**£**|2021
£|
|---|---|---|
|Peer Review
BAME Advice Project
Covid-19 Job Retention Scheme Grants
**Total**|**—**
**20,100**
**7,819**|28,524
19,190
13,272|
||**27,919**|60,986|
Page 19
## **ADVICE SERVICES ALLIANCE**
## **Notes to the financial statements 31 March 2022**
## **5. Net income for the year**
Net income is stated after charging:
||**2022**
**£**|2021
£|
|---|---|---|
|Operating lease rentals
. land and buildings|**1,987**|2,062|
The charity is party to a licence agreement to occupy office space. The licence is renewed annually.
## **6. Staff costs including key management personnel and Trustees’ remuneration**
Staff costs were as follows:
||**2022**
**£**|2021
£|
|---|---|---|
|Wages and salaries
Social security costs
Pension costs|**73,877**
**2,689**
**3,252**|83,637
3,905
3,917|
||**79,818**|91,459|
The average number of employees during the year was 2.5 (2021 – 2.5).
No employee received emoluments of £60,000 or more (2021 – nil).
## _**Key management personnel**_
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the charity and are represented by the Trustees and Chief Executive. The total remuneration paid to the Chief Executive including National Insurance and pension costs was £48,100 (2021 – £56,125).
No Trustee received any emoluments.
No travel expenses of were reimbursed to any trustee (2021 – £nil).
## **7. Taxation**
Advice Services Alliance is a registered charity and therefore is not liable for income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.
Page 20
## **ADVICE SERVICES ALLIANCE**
## **Notes to the financial statements 31 March 2022**
## **8. Debtors: amounts receivable within one year**
|**Debtors: amounts receivable within one year**|||
|---|---|---|
||**2022**
**£**|2021
£|
|Other debtors
Prepayments and accrued income|**23,415**
**17,187**|13,234
4,788|
||**40,602**|18,022|
|**Creditors: amounts falling due within one year**|**2022**
**£**|2021
£|
|Social security and other taxes
Other creditors
Accruals and deferred income|**9,716**
**857**
**9,700**|9,709
—
9,186|
||**20,273**|18,895|
## **9. Creditors: amounts falling due within one year**
## **10. Statement of funds**
|**Statement of funds**|||||
|---|---|---|---|---|
||**At 1**
**April**
**2021**
**£**|**Income**
**£**|**Expenditure**
**£**|**At 31**
**March**
**2022**
**£**|
|General funds
Designated funds
. Computer upgrading
. Staff costs
. Website development
**Total unrestricted funds**
**Restricted funds**
BAME advice project
**Total restricted funds**|**73,599**
**5,000**
**30,000**
**10,000**|**94,340**
**—**
**—**
**—**|**(84,394)**
**—**
**—**
**—**|**83,545**
**5,000**
**30,000**
**10,000**|
||**118,599**|**94,340**|**(84,394)**|**128,545**|
||**—**|**20,100**|**(20,100)**|**—**|
||**—**|**20,100**|**(20,100)**|**—**|
||||||
|**Total funds**|**118,599**|**114,440**|**(104,494)**|**128,545**|
Page 21
## **ADVICE SERVICES ALLIANCE**
## **Notes to the financial statements 31 March 2022**
## **10. Statement of funds** (continued)
|**Statement of funds**(continued)|||||
|---|---|---|---|---|
||At 1
April
2020
£|Income
£|Expenditure
£|At 31
March
2021
£|
|General funds
Designated funds
. Computer upgrading
. Staff costs
. Website development
Total unrestricted funds
Restricted funds
Peer Review
BAME advice project
Total restricted funds|61,482
5,000
30,000
10,000|88,217
—
—
—|(76,130)
—
—
—|73,599
5,000
30,000
10,000|
||106,482|88,217|(76,130)|118,599|
||—
—|28,524
19,190|(28,524)
(19,190)|—
—|
||—|47,714|(47,714)|—|
||||||
|Total funds|106,482|135,931|(123,814)|118,599|
## _**Restricted funds**_
## _Peer Review_
This fund represented a grant received from Legal Education to fund a trial project which was completed in 2020/21 and the grant funding had been fully spent at 31 March 2021.
## _BAME advice project_
Funding was initially provided in 2020/21 by Trust for London to undertake a research project on Black, Asian and Minority Ethic advice services. Further funding became available in July 2021 with a total grant of £30,200 towards the costs of setting up a network of London based organisations providing advice services to diverse ethnic and racial communities. In the year ended 31 March 2022, the charity recognised restricted grant funding of £20,100 and costs equivalent to the funding received. The project completed in July 2022 and the balance of the restricted funds will be released on submission of the project evaluation report.
## _**Designated funds**_
The computer upgrading fund has been set aside to ensure that the quality of computer equipment is maintained and has been assigned for purposes of all computer equipment including software upgrades, hardware plus printers and other associated equipment.
The staff costs fund has been set up to provide for unexpected staff costs which could include long term sickness and the provision of temporary staff during absences of up to 4 months.
The website development fund relates to the requirement to maintain two up to date websites with maximum functionality. To achieve this, the websites need to be redesigned on a regular basis and occasionally more frequently in emergencies for example website crashes.
Page 22
## **ADVICE SERVICES ALLIANCE**
## **Notes to the financial statements 31 March 2022**
## **11. Analysis of net assets between funds**
|**Analysis of net assets between funds**|||||
|---|---|---|---|---|
||**Designated**
**funds**
**£**|**General**
**funds**
**£**|**Restricted**
**funds**
**£**|**Total**
**funds**
**£**|
|Fund balances at 31 March 2022 are represented by
Current assets
Current liabilities|**45,000**|**103,818**
**(20,273)**|**—**
**—**|**148,818**
**(20,273)**|
||**45,000**|**83,545**|**—**|**128,545**|
||Designated
funds
£|General
funds
£|Restricted
funds
£|Total
funds
£|
|Fund balances at 31 March 2021 are represented by
Current assets
Current liabilities|45,000
—|92,494
(18,895)|—
—|137,494
(18,895)|
||45,000|73,599|—|118,599|
Page 23