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2022-03-31-accounts

MEDWAY DISTRICT CITIZENS ADVICE BUREAU OPERATING AS CITIZENS ADVICE MEDWAY

Solving problems, changing lives The difference we make

Annual Accounts 2021 - 2022

CIT We are Citizens Advice Medway

Our charity was founded in 1939. Since then, we’ve provided free, confidential and independent advice, information and support to anyone who needs it.

We help people online, over the phone and face-to-face through our network of local centres.

Every year thousands of people turn to us. This gives us a unique insight into their needs and concerns.

In turn, we use this knowledge to campaign on big issues both locally and nationally. So one way, or another, we’re helping everyone - not just those we support directly.

Follow us on twitter @CAB Medwa y twitter.com/CAB Medway

Like us on Facebook

facebook.com/MedwayCAB

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MEDWAY DISTRICT CITIZENS ADVICE BUREAU OPERATING AS CITIZENS ADVICE MEDWAY

Contents

Page
Reference and Administrative Detail 3
Chairs Annual Report 5
CEO Report – Overview of our year 6
Treasurers Report 8
Trustees Report 9
Independent auditors report on financial statements 21
Statement of financial activities 26
Balance Sheet 27
Statement of cash flows 28
Notes to the financial statements 29

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MEDWAY DISTRICT CITIZENS ADVICE BUREAU OPERATING AS CITIZENS ADVICE MEDWAY

COMPANY INFORMATION

The Trustees present their annual report together with the audited financial statements of the Charity for the year from 1 April 2021 to 31 March 2022. The Annual report serves the purposes of both a Trustees' report and a Directors' report under company law. The Trustees confirm that the Annual report and financial statements of the Charitable Company comply with the current statutory requirements, the requirements of the Charitable Company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the Charity qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

REFERENCE AND ADMINISTRATIVE DETAIL

Charity number: 1115644 Company number: 05568569 Registered Office: Third Floor, Kingsley House, 37-39 Balmoral Road, Gillingham, Kent, ME7 4PF Financial Conduct Authority. FRN: 617661.

Company Secretary: D McDonald Website address: www.medwayadvice.org.uk Bankers: NatWest Bank Auditors: Kreston Reeves

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MEDWAY DISTRICT CITIZENS ADVICE BUREAU OPERATING AS CITIZENS ADVICE MEDWAY

Directors/Trustees

The Trustees, who are also the Directors for the purpose of company law, who served during the year and since the year-end are:

Key Management Personnel

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Chair’s Annual Report

On behalf of the Board of Trustees may I present our annual report for 2021/2022.

I joined the Board in May 2011 and was elected Vice Chair in January 2012, In September, 2015, the Current Chair stepped down and I was voted Chair, by the Trustee Board.

Prior to this I have worked extensively in the local community with various organisations, Charities and Schools, for the last 20 years

The number and range of people who turn to Medway Citizens Advice for advice and support is forever increasing. In part this reflects the growing pressures on people’s lives, but also that Medway Citizens Advice is delivering a greater number of services by securing local contracts through the competitive tendering process.

Further in this report you will find contributions from our Chief Executive and the Board of Trustee’s Treasurer. Both reports outline in more detail the service developments over the past year and the annual financial outcome.

As Medway Citizens Advice we do not work alone and I want to thank all our partners with whom we have worked over the past twelve months, in delivering a variety of services to support the residents of Medway and wider Kent. However, none of this would be possible without our hard working staff and the dedication of our volunteers – on behalf of the Trustees I want to record our genuine thanks.

Finally, I have been privileged to be Chair of Medway Citizens Advice, but I could not do this alone and so I want to pay tribute to my fellow trustees who work tirelessly for the Bureau in a voluntary capacity. Without their support and commitment my position as Chair would be far more challenging.

Thank you for your time and I hope you find this report both interesting and informative.

David Ainsley

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CEO Report - An overview of our year

Our Year:

This year has again been one of the most challenging but also most rewarding for Citizens Advice Medway, both for our clients and our organisation. We again expanded the range of services we provide and the clients who we support, around the issues we have seen before but also in new areas like Full Service Universal Credit, and Local Welfare Provision.

It was also the second full year of our new membership agreement, which included a new Performance Quality Framework and a Leadership SelfAssessment. We were delighted to be assessed as green in all 9 areas, scoring 5 out of 5 in 9 areas.

We lost some long-standing friends and colleagues and welcomed some new ones - staff, volunteers, and trustees.

We have worked with a wider range of partners on a wider range of projects and at the end of one of our most challenging years ever, are in a good place to continue our vital service to the people of Medway and beyond.

Our Service

In addition, to our face-to-face service we also answered around 21,332 calls from clients for advice in the year, but are still not meeting demand, which we need to tackle urgently in 2022 - 2023. As well as our core service, we increased the number and range of projects we are involved in and the number of partners we work with.

All Outreach services were suspended in late February/early March 2020 as the COVID-19 pandemic was first identified. All of our Outreaches dealt with vulnerable clients such as those over the age of 60 and the homeless. This meant a decision was made early on to suspend services for the safety of our workers and the clients. All venues understood our decision and the HMP Cookham Wood Outreach successfully transitioned to a telephone service in mid-2020 as the first lockdown concluded.

Our People

We recruited very few additional volunteers in 2021/22 or paid staff as a result of the pandemic. We’ve worked hard to maintain morale among the team and have introduced a number of ongoing measures such as an additional day of annual leave on staff birthdays, the introduction of paid overtime and bonuses, and regular internal social events.

Finances

I would like to thank all trustees, staff and volunteers for the phenomenal amount of work they put in at the start of the year to meet this challenge and

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maintain and even improve service level to clients.

Going forwards, we continue to seek to diversify our funding and provide services to a wider range of individuals and organisations.

We continue to work hard with Funders and Partners to reach our long-term goals and remain sustainable. The year ended very abruptly due to COVID-19, we have worked hard to ensure all our office space is COVID- secure so we can continue delivering the much needed Services.

The Future

Despite a very challenging environment, for both our organisation and our clients we end the year in a strong position and being able to set a small surplus budget.

I am delighted to be in the post of CEO and look forward to leading us into a new chapter. We will look to continue to provide a wider range of services with a wider range of partners. This will include continued closer working with the armed services, the health sector and with other local Citizens Advice colleagues and statutory and voluntary colleagues.

The Armed Force project will hopefully allow us to engage in housing work with veterans in Medway. We’re also in talks with Medway Foodbank about a potential new Outreach project where an Adviser would be present at their various distribution centres to help resolve the issues facing their clients.

We are also in the process of preparing to search for a new premises elsewhere in Gillingham. Ideally we’re looking for a High Street venue. Our current offices have a number of issues and are prohibitively expensive. As funding continues to be a primary concern, we need to re-evaluate whether our current office will meet our requirements in a post-COVID world and whether it is of financial benefit to remain here. I hope to have a substantial update on our premises situation next year.

We will also provide a wider range of service, including policy work and training.

I would like to thank all the trustees, volunteers, staff and friends of Citizens Advice Medway for their support this year, and ongoing commitment to providing an excellent advice service.

Dan McDonald

Chief Executive Officer

----- Start of picture text -----
ISSUES IN MEDWAY
Other, 8104 Benefits
Relationships,
Benefits, 17201
4477 Consumer
Legal, 1190 Debt
Employment
Housing, 9096
Consumer, 4758
Financial services & capability
Financial
Housing
services &
capability, 2225 Legal
Employment, Debt, 18920 Relationships
10347
----- End of picture text -----

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MEDWAY DISTRICT CITIZENS ADVICE BUREAU OPERATING AS CITIZENS ADVICE MEDWAY

Treasurers Report

Welcome to my report on the 2021/2022 Audited Accounts of Citizens Advice Medway. Mention needs to be made again of the impact of the Coronavirus Epidemic that overtook Medway, the Country and the World and the resulting financial impact we saw in 2021/2022, together with other global events.

Though we saw a return to some normality following the lockdowns in 2020/2021 the impact of them and the financial fallout has had a serious impact across the country and Medway. We have seen an increase in the demand for our services over the year and likely increasing through the remainder of 2022 going into 2023.

The Management and Staff, with support from the Board, have pulled together again as a team to work under pressure as the demand for services increased. Volunteers have returned to our services to assist in support the office. I cannot praise enough the work of the team as a whole with what they have achieved under very taxing circumstances. Again, I am very proud of their efforts and achievements through the year and the support they have provided to numerous Medway residents.

The out-turn for the year has proven to more arduous than those previously. Though two of the large projects did provide a surplus, overall, there was a loss for the year. However, looking behind the figures the loss is in large part down to the overspend on one of the Restricted projects which had a significant surplus in 2020/2021 (over two years the spend on the project is balanced).

This had an impact on reserves but should be a single year reduction as we look to build our reserves going forward. The Board and the CEO remain committed to further improving the Unrestricted Reserves to meet the demands of a challenging funding landscape and future uncertainties; we live and work in a constantly changing landscape in the charity sector.

The future remains uncertain, but we will continue to improve Citizens Advice Medway to allow it to remain at the forefront of voluntary services in the Southeast. We will also continue to expand the breadth of work undertaken by CA Medway and its source of funds.

I write this in my final year as Treasurer and would like to express my thanks to both Chairman and CEO for their support during my tenure. My thanks also to all the staff and volunteers for all their efforts for how far we have come during my tenure to be on a solid financial ground moving forward.

Peter Murray

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Trustees’ Report For the year ended 31 March 2022

The Trustees (who are also directors) present their annual report together with the audited financial statements of Medway District Citizens Advice Bureau for the year ended 31 March 2022.

Objectives and Activities

A. Policies and objectives

The objects of the Company are to promote any charitable purpose for the benefit of the inhabitants of the area of benefit (comprising the Medway towns and the immediate surrounding area) by the advancement of education, the protection of health and the relief of poverty, sickness and distress.

B. Charity’s aims

Medway District Citizens Advice Bureau provides free, confidential, impartial and independent advice and information for the benefit of the local community. It aims to provide the advice people need for the problems they face and to improve the policies and practices that affect people's lives.

The focus of our activities remains as follows:

C. Main objectives for the year

Our main aim for the year is to continue to provide a quality advisory service and increase our number of Adviser, Administration and Research and Campaign volunteers. This includes developing new remote recruitment mechanisms and remote working and supervision tools.

The requirements via our Performance and Quality Framework (PQF) with our head office have been temporarily reduced as CitA recognised the additional pressures on supervisors and managers caused by the pandemic. Keeping up to date with the

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shifting regulations in all subject areas (employment, consumer, debt, benefits, etc) was an intense and long-term piece of work.

In addition to the continuing provision of high quality advisory services to the local community, the primary objectives for the year were to maintain existing opening hours and incorporate new funding streams such as the Trussell Trust Helpline, Emergency Assistance Grant, and successful bids including the Community Justice Fund.

Our telephone and email services were boosted to compensate for the suspension of face-to-face services. We continued to develop a strategic approach to quality advice services in Medway, whilst at the same time ensuring that we underpin our service provision with a diverse funding structure.

Public benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. In planning our activities for the year we kept in mind the Charity Commission's guidance on public benefit at our trustee meetings.

VOLUNTEERS

The charity receives help and support in the form of voluntary assistance in advising the public and administering the charity.

Last year most of our volunteers returned to the office as the lockdowns concluded while some continued to do a mixture of telephone and face-to-face work with clients. Two volunteers with partners who were deemed clinically vulnerable during the lockdowns chose to remain doing telephone work from home and this continues to be the case. This is because they don’t want to risk using public transport to get to our office, only to be doing the same telephone work they’d be doing from home.

We’ve had two volunteers choose to come off our records during this period. The first is Sue Whitaker who was one of our longest serving volunteers and had chosen to withdraw due to her age. The second was Svetlana who had fallen seriously ill and will re-apply in the future should her health improve.

Most volunteers have had their booster jabs. All volunteers are happy to be back and have been working well on our systems with George supporting them as Advice Session Supervisor.

The team has not expressed any concerns about learning different ways of working. For example, one of our volunteers had only ever done face-to-face work. She has now adapted to doing telephone work very well.

With the help of Clive and some of our volunteers during the lockdowns, we’ve been able to continue our volunteer recruitment. We currently have 5 new volunteers who were brought into the office in January 2022, four that are waiting to be brought in, and another group (over 20) to be interviewed. Most are expressing an interest in

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advising clients and we’re currently ensuring that we can accommodate everyone in our office while safely adhering to COVID workplace rules.

70 volunteers contributed approximately 35,000 hours of work to the Bureau during the year. The contribution from volunteers has not been included in the Statement of Financial Activities as the value of their contribution cannot be reliably quantified in financial terms. Without the commitment of the volunteers the charity would not be able to achieve its objectives. The Trustee Board is extremely grateful for their greatly valued and appreciated hard work and dedication

Increase and Retain Volunteers

Post-COVID & Cost of Living

The COVID-19 pandemic caused us considerable pressures in terms of finances and workload. Our services continue to see high demand as the country emerges from the impact of COVID and moves into the Cost of Living crisis. Already we’re seen hundreds of enquiries come through for fuel top-ups, food vouchers, benefit queries, and debt advice.

Our face-to-face services have resumed alongside our telephone and digital channels and we’ve found clients are keen to return to the office and continue to follow government guidelines with regards to testing and public safety.

We’re in the process of looking for a new premises that’s easier to access for clients. A number of potential sites in the local Gillingham High Street have been viewed with the goal of having a larger and friendlier space. As part of the plan to build Medway’s resilience against the developing Cost of Living crisis, we’ve successfully bid for a number of new projects which should greatly increase our ability to support clients with housing, benefits, and debt problems.

ACHIEVEMENTS AND PERFORMANCE

KEY ACHIEVEMENTS - 2021/2022

We’re in the process of applying for several new projects as the pandemic is coming to an end and non-COVID funding is starting to become available again. We’ve teamed up with a professional bid writer who is supporting us with a range of bids including a hospital project, a prison project, bids to Lloyds Bank and the Access to Justice Fund, and a National Lottery funded Resilience Team that will advise on debt, housing, and benefits issues that will present as the community attempts to recover from the problems caused by COVID.

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HAPPY BAGS

We have also resumed our volunteer recruitment process and gained many brilliant additions to our current team. We’ve found that people are still eager to volunteer in the post-COVID environment and our accredited training programme continues to enable our volunteers, both new and old, to remain fully up to date with the latest legislation to help equip them with the knowledge needed to support the community in a post-COVID environment.

Recognition - We never underestimate that the total time donated by our volunteers in 2021/22 was crucial to the service operating, especially as the rules around COVID were constantly changing and our team had to meet the challenge of ensuring they continued to give correct advice at all times.

The past year has presented a number of challenges for our organisation. The fact that Citizens Advice Medway has adapted so capably to a changing context in 2021/22 as the country began to move out of lockdown, is testimony to the expertise of our staff, volunteers and leadership team, to whom I extend my thanks on behalf of the Board of Trustees.

Achievements and Performance

LWP GRANT

As a result of the COVID-19 pandemic, the UK government distributed additional funding of Local Authorities to help tackle the crisis. These were the Emergency Assistance Grant and the COVID Winter Grant. Medway Council chose to incorporate these into the existing Local Welfare Provision scheme which we administer on behalf of the Council as part of our core funding agreement.

Citizens Advice Medway has helped thousands of residents via the new schemes. Primarily the fund was used to arrange the provision of food, energy top-ups (gas and electric) and essential household items. These could be beds, microwaves, cookers, fridges, and other items. Aimed at those in crisis, there was still a strict eligibility criteria that still needed to be adhered to, though we did our best to ensure nobody was left unable to meet their own basic needs.

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While the EAG scheme concluded and was replaced by the Household Support Scheme that we’re not a part of, the LWP scheme has continued and remains a vital lifeline to thousands of residents across Medway. A holdover from the EAG scheme was granted by Medway Council which allowed us to operate a Free Bed Scheme. People were invited to contact us if they needed a single or double bed. These divan beds were then delivered for free to vulnerable residents and their families. The scheme enjoyed tremendous success and gained significant recognition from not just Medway Council but also a number of local agencies that support clients in different ways (eg: probation, social services, etc).

MASDAP - Our Money Advice project has seen a huge spike in referrals now that debt enforcement has resumed in the wake of COVID. Thanks to the new government measure called Breathing Space, we can ensure clients have peace of mind and can correctly engage with us as Breathing Space suspends debt enforcement for a set length of time depending on the client’s circumstances. Debt advice is taking place face-to-face and over the telephone and our Money Advisers continue to support our LWP team by completing income and expenditures with clients.

The team initially found referrals slowing down at the starts of the financial year due to the pandemic. Debt enforcement was suspended, and courts closed, this meant most of the work done by the team had to be paused. This changed swiftly with the introduction of additional funding into the LWP scheme.

The team were awarded an accolade from MAS and Citizens Advice for outstanding work and for being one of the best performers in the South East Region.

Fundraising Activities/Income Generation

The charity received grants from Medway Council, Legal Services Commission, Citizens Advice UK, Coyler Fergusson, Mrs Smith & Mount Trust, The Big Lottery, CAF Resilience Fund, Charities Trust – NATIONWIDE, The National Lottery Community, Kent Community Foundation, Access to Justice.

The charity is only too well aware of the financial pressures experienced by its major funders, and in view of this has taken active measures to broaden the charity's funding base.

We have proactively engaged in Fundraising seminars, networking with our Local and National Funders, to continue searching for opportunities, to increase our Funding Streams.

We are always seeking opportunities and continue to make applications to various funders to support our plan to increase and extend the services we offer, we proactively work with our Partner Charities to secure funding for projects we work in collaboration to increase and extend the services we offer.

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Maintain an increase access to diverse and resilient funding

Financial review

Going concern

After making appropriate enquiries, the Trustees have reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

FINANCIAL REVIEW RESERVES POLICY

Reserve’s Policy

The Trustees consider that reserves, which are deemed freely available for any of the charity's objectives, should best be used to provide a solid business base for the Company. Allowance has been made for the following factors in determining the current level of reserves.

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The Reserve Policy is reviewed by the Trustees at least annually. The Trustees can, at any future date, determine that a part of the reserves can be utilised for a specific purpose, in which case those funds would be treated as designated funds

Restricted Funds

The use of funds outside the terms of the contract is prohibited, with the balance of funds to be returned on completion of the contract.

The company has a contract with its national association, Citizens Advice, to provide debt advice to tenants of Registered Social Landlords. The funding comes from the Department for Business, Innovation & Skills.

Current restricted Funds stand at £46,399 and will be held to meet any unanticipated expenses associated with the specific projects.

Unrestricted Funds

The Trustees believe that Medway CA should hold financial reserves in order to ensure that the charity can continue to operate and meet the needs of clients of unforeseen and potentially financially damaging circumstances arising. Current Unrestricted funds stand at £588,476.

The Trustees consider that it would be prudent to set aside an amount equivalent to Four months operating expenditure to meet the cost of contractual arrangements should there be a short term break in funding; this is estimated at £274,871

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Designated Funds

In addition, unrestricted funds have been designated to the following purposes: Equipment Reserve. Though it has been successful in seeking funding to support IT infrastructure through external sources, the Board considers that there is a need for a reserve to be created to support the ongoing replacement of the IT infrastructure at Medway Citizens Advice. The reserve to stand at £8,000.

Contractual Commitment reserve

At present, the Board does not consider that there is a need to set aside funds for redundancy. However, the experience of Citizens Advice Medway over the last two years has encouraged the Board to create a reserve to cover disciplinary and/or grievance at £10,000.

Premises

The Board considers that there is no need for a reserve at this this time

Review of reserves policy

Reserves are monitored at every quarterly meeting of the Finance and Resources Sub Committee, the Committee will ensure that reserves are not unduly affected by unanticipated expenses and are sufficient for the needs identified in this reserves policy.

This reserves policy is monitored by the Board of Trustees annually when the Audited Accounts become available, or more frequently as circumstances dictate.

Principal Funding

Our principal funders are Medway Council from whom we receive our core funding together with funds for additional specific projects and the legal Service Commission who contract with us to provide free legal advice to local residents.

STRUCTURE, GOVERNANCE AND MANAGEMENT CONSTITUTION

The company is constituted under a Memorandum of Association dated 20th September 2005. It is a charity registered with the Charity Commission for England and Wales.

Method of Appointment or Election of Trustees

Trustees are recruited from a wide range of backgrounds to ensure an appropriate mix of knowledge, skills and experience and to mirror the local community profile. The management of the company is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association. Only Trustees are members of the company. The power of appointment of Trustees is vested in the existing Trustees, subject to ratification at the Annual General Meeting.

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Policies Adopted For the Induction and Training of Trustees

New Trustees are provided with an induction pack and are invited to attend meetings with the company’s executive management. During the year, new and existing Trustees meet to review the company’s operations and plans. All trustees are encouraged to develop their skills base. The National Citizens Advice has a range of support services for Trustees, including Cablink, which publishes a wide range of news and information, and Bureau Management Information Systems (BMIS) which provides policies, guidance tools and standard documents.

Organisational Structure and Decision Making

The Trustees have legal responsibility for the general control and management of the company, including financial management and control. The Trustees are responsible for ensuring that the company complies with the Citizens Advice Membership Scheme, charity legislation and company law.

Day-to-day management is delegated to the Chief Executive Officer (CEO), Mr D McDonald.

The Trustees meet on at least four occasions in each year. The quorum at such meetings is one third of the total number of current members.

The company’s financial position is reviewed at each meeting of the Trustee Board. Medway District Citizens Advice Bureau Ltd is a member of Citizens Advice, the operating name of the National Association of Citizens Advice Bureaux, which provides a framework for standards of advice and casework management as well as monitoring progress against these standards.

Operating policies are independently determined by the trustee board of Medway District Citizens Advice Bureau Ltd in order to fulfil its charitable objects and comply with the national membership requirements.

Related Party Relationships

The charity co-operates and liaises with a number of other advisory services, local charities and statutory services on behalf of clients. Where one of the trustees holds the position of trustee or director of another charity, they may be involved in discussions regarding that other charity but not in the ultimate decision making process.

Risk Management

The Trustee Board have completed a corporate risk management exercise. A risk assessment is annually considered by the trustee board as part of their business planning procedures. The trustees recognise that any major risks to which the charity is exposed need to be reviewed and systems put in place to mitigate those risks. To that end the company is continually monitoring and managing its risk, reviewing risk and ensuring action plans are in place to mitigate its key risk areas.

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Included in external risks is that of the loss of funding. The effects of this have been minimised by the procedures in place, which have resulted in funding being secured from a variety of sources. The charity continues to seek to diversify its funding sources. Internal risks are minimised by the implementation of procedures for authorisation of all transactions and projects and to ensure consistent quality of delivery for all operational aspects of the charity. These procedures are periodically reviewed to ensure that they still meet the needs of the charity.

FUTURE DEVELOPMENTS Achievements and Performance

Our mission

We sort out problems together, for good, we deliver this mission by:

Delivering services responsive to community need

Empowering citizens to understand and exercise their rights and responsibilities

Preventing problems through education and training

Influencing social policy to achieve positive change

Whilst adhering to the four Citizens Advice principles on which the service was founded; offering advice that is:

Our objectives have been designed to meet the needs of the local community, as well as supporting the achievement of the national Citizens Advice strategic aims, which are:

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Our plan

Our Vision, Mission and Values underpin our Business and Development Plan 20222023.

Plan objectives

And we support the “Stand up for Equality” objectives, which are:

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The Trustees (who are also directors of Medway District Citizens Advice Bureau for the purposes 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 Accounting Practice).Company and charity 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 incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

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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.

Disclosure of information to auditor

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

Auditor

The auditor, Kreston Reeves LLP, has indicated his willingness to continue in office. The designated Trustees will propose a motion reappointing the auditor at a meeting of the Trustees.

In preparing this report, the Trustees have taken advantage of the small companies’ exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the Trustees on and signed on their behalf, 07/12/22 by:

Mr David Ainsley

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Medway District Citizens Advice Bureau

(A company limited by guarantee)

Independent auditor's report to the Members of Medway District Citizens Advice Bureau

Opinion

We have audited the financial statements of Medway District Citizens Advice Bureau (the 'charity') for the year ended 31 March 2022 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

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(A company limited by guarantee)

Independent auditor's report to the Members of Medway District Citizens Advice Bureau (continued)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditor's report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Page 22

Medway District Citizens Advice Bureau

(A company limited by guarantee)

Independent auditor's report to the Members of Medway District Citizens Advice Bureau (continued)

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Capability of the audit in detecting irregularities, including fraud

The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks.

Based on our understanding of the charity and sector, and through discussion with the Trustees and other management (as required by auditing standards), we identified that the principal risks of non compliance with laws and regulations related to health and safety, anti bribery and employment law. We considered the extent to which non compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, taxation and pension legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non compliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure and management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Page 23

Medway District Citizens Advice Bureau

(A company limited by guarantee)

Independent auditor's report to the Members of Medway District Citizens Advice Bureau (continued)

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Page 24

Medway District Citizens Advice Bureau

(A company limited by guarantee)

Independent auditor's report to the Members of Medway District Citizens Advice Bureau (continued)

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

S Robinson BA FCA MCMI FCIE DChA (Senior statutory auditor)

for and on behalf of Kreston Reeves LLP Chartered Accountants Statutory Auditor Chatham Maritime

Date: 12th December 2022

Page 25

Medway District Citizens Advice Bureau

(A company limited by guarantee)

Statement of financial activities (incorporating income and expenditure account) for the year ended 31 March 2022

Note
Income from:
Donations and legacies
2
Charitable activities
4
Investments
3
Other income
5
Total income
Expenditure on:
Charitable activities
6
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
2022
£
39,625
558,493
100
74,014
672,232
665,474
665,474
6,758
581,718
588,476		 Restricted
funds
2022
£
50,000
233,641
-
-
283,641
412,764
412,764
(129,123)
175,522
46,399		 Total
funds
2022
£
89,625
792,134
100
74,014
955,873
1,078,238
1,078,238
(122,365)
757,240
634,875		 Total
funds
2021
£
538,575
984,972
152
91,645
1,615,344
1,212,455
1,212,455
402,889
354,351
757,240

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

The notes on pages 29 to 43 form part of these financial statements.

Page 26

Medway District Citizens Advice Bureau

(A company limited by guarantee) Registered number: 05568569

Balance sheet as at 31 March 2022

Note
Fixed assets
Tangible assets
9
Investments
10
Current assets
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due within one
year
12
Net current assets
Total net assets
Charity funds
Restricted funds
13
Unrestricted funds
13
Total funds		 9,656
599,175
608,831
(23,458)		 2022
£
49,500
2
49,502
585,373
634,875
46,399
588,476
634,875		 40,298
736,268
776,566
(45,253)		 2021
£
25,925
2
25,927
731,313
757,240
175,522
581,718
757,240

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees on _______7th December 2022 and signed on their behalf by:

D J Ainsley Trustee

The notes on pages 29 to 43 form part of these financial statements.

Page 27

Medway District Citizens Advice Bureau

(A company limited by guarantee)

Statement of cash flows for the year ended 31 March 2022

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Purchase of tangible fixed assets
Net cash used in investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
The notes on pages 29 to 43 form part of these financial statements		 2022
£
(99,287)
100
(37,906)
(37,806)
(137,093)
736,268
599,175		 As restated
2021
£
422,914
152
(26,678)
(26,526)
396,388
339,880
736,268

Page 28

Medway District Citizens Advice Bureau

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

1. Accounting policies

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Medway District Citizens Advice Bureau 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.

1.2 Company Status

The company is a company limited by guarantee. The members of the company are the Trustees named on page 21. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.

1.3 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

1.4 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

1.5 Expenditure

Page 29

Medway District Citizens Advice Bureau

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

1. Accounting policies (continued)

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

Charitable activities and Governance costs are costs incurred on the company's educational operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.

1.6 Going concern

The Trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the Charity has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the Charity's ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

1.7 Tangible fixed assets and depreciation

All assets costing more than £250 are capitalised.

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of financial activities incorporating income and expenditure account.

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment.

Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Fixtures and fittings - 20% reducing balance
Office equipment - 20% reducing balance
Computer equipment - 33% reducing balance

1.8 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless fair value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading 'Gains/(losses) on investments' in the Statement of financial activities incorporating income and expenditure account.

1.9 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the Bank.

Page 30

Medway District Citizens Advice Bureau

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

1. Accounting policies (continued)

1.10 Government grants

Government grants are treated as deferred income and released to the Statement of financial activities over the expected useful lives.

1.11 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.

1.12 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.13 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.14 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

1.15 Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

1.16 Operating leases

Rentals paid under operating leases are charged to the Statement of financial activities on a straightline basis over the lease term.

1.17 Pensions

The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.

Page 31

Medway District Citizens Advice Bureau

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

2. Income from donations and legacies

Donations
Grants
Government grants
Total 2021		 Unrestricted
funds
2022
£
500
39,125
-
39,625
338,215		 Restricted
funds
2022
£
-
50,000
-
50,000
200,360		 Total
funds
2022
£
500
89,125
-
89,625
538,575		 Total
funds
2021
£
515
489,144
48,916
538,575

3. Investment income

Interest receivable
Total 2021		 Unrestricted
funds
2022
£
100
152		 Total
funds
2022
£
100
152		 Total
funds
2021
£
152

Page 32

Medway District Citizens Advice Bureau

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

4. Income from charitable activities

Medway Council grants
Specialist advice
Face to Face
Local Welfare Provision
Other contracts and grants
Universal Support - Help to Claim
Emergency Assistance grant
Trussell Trust
Medway Hospital fund
Scott Elliot grant
Total 2021		 Unrestricted
funds
2022
£
211,638
88,362
197,648
-
1,169
-
-
34,676
-
25,000
558,493
516,611		 Restricted
funds
2022
£
-
-
-
-
-
113,641
120,000
-
-
-
233,641
468,361		 Total
funds
2022
£
211,638
88,362
197,648
-
1,169
113,641
120,000
34,676
-
25,000
792,134
984,972		 Total
funds
2021
£
209,841
40,741
218,256
5,880
5,967
119,631
336,000
41,806
6,850
-
984,972

5. Other income

Lettings income and recharges
Total 2021		 Unrestricted
funds
2022
£
74,014
91,645		 Total
funds
2022
£
74,014
91,645		 Total
funds
2021
£
91,645

Page 33

Medway District Citizens Advice Bureau

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

6. Charitable Activites

Staff costs
Rent and service charges
Insurance
Communication costs
Printing, postage and stationery
Advertising
Sundry expenses
Grant expenditure
Motor and travel expenses
Training and recruitment
Staff and volunteer expenses
Repairs and renewals
Subscriptions
Legal, professional and consultancy fees
Payroll and accounts administration
LAF disbursements
Irrecoverable input VAT
Bank charges
Depreciation
Auditor's remuneration
Auditor's remuneration for non audit work
Trustees expenses
Other governance costs
Loss on disposal
Total 2021		 Unrestricted
funds
2022
£
337,811
127,861
1,846
760
3,563
1,121
5,376
-
4,036
2,329
6,314
44,049
10,604
10,089
29,489
3,883
55,912
776
14,235
3,823
-
516
985
96
665,474
706,592		 Restricted
funds
2022
£
131,737
33,051
-
22,505
313
-
-
195,568
-
-
5,645
19,718
-
4,227
-
-
-
-
-
-
-
-
-
-
412,764
508,863		 Total
funds
2022
£
469,548
160,912
1,846
23,265
3,876
1,121
5,376
195,568
4,036
2,329
11,959
63,767
10,604
14,316
29,489
3,883
55,912
776
14,235
3,823
-
516
985
96
1,078,238
1,215,455		 Total
funds
2021
£
490,955
148,384
3,528
26,004
9,422
8,650
58,446
248,384
627
444
15,682
79,572
12,024
4,796
33,192
3,020
55,312
1,115
10,846
3,835
687
374
156
-
1,215,455

Page 34

Medway District Citizens Advice Bureau

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

7. Staff costs

Wages and salaries
Social security costs
Pension costs		 2022
£
426,114
35,466
7,968
469,548		 2021
£
449,309
34,024
7,622
490,955

The average number of persons employed by the Charity during the year was as follows:

2022 2021
No. No.
12 15

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2022 2021
No. No.
In the band £70,001 - £80,000 1 1

8. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2021 - £NIL).

During the year ended 31 March 2022, no Trustee expenses have been incurred (2021 - £NIL).

Page 35

Medway District Citizens Advice Bureau

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

9. Tangible fixed assets

Cost or valuation
At 1 April 2021
Additions
Disposals
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the year
On disposals
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021
Fixed asset investments
Cost or valuation
At 1 April 2021
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 Fixtures and
fittings
£
1,398
-
-
1,398
1,233
33
-
1,266
132
165		 Office
equipment
£
38,135
37,906
(2,593)
73,448
23,573
10,469
(2,497)
31,545
41,903
14,562		 Computer
equipment
£
43,454
-
(494)
42,960
32,256
3,733
(494)
35,495
7,465
11,198		 Total
£
82,987
37,906
(3,087)
117,806
57,062
14,235
(2,991)
68,306
49,500
25,925
Shares in
group
undertaking
s
£
2
2
2
2

10. Fixed asset investments

Page 36

Medway District Citizens Advice Bureau

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

10. Fixed asset investments (continued)

Principal subsidiaries

The following were subsidiary undertakings of the Charity:

Names
Medway Healthwatch Ltd
Medway Healthwatch CIC
The financial results of the subsidiaries for the year were:
Names
Medway Healthwatch Ltd
Medway Healthwatch CIC
Debtors
Due within one year
Trade debtors
Prepayments and accrued income		 2022
£
5,578
4,078
9,656		 Holding
100%
100%
Aggregate
of share
capital and
reserves
£
1
1
2021
£
40,298
-
40,298

11. Debtors

12. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income		 2022
£
-
12,362
1,667
9,429
23,458		 2021
£
24,411
12,421
1,633
6,788
45,253

Page 37

Medway District Citizens Advice Bureau (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

13. Statement of funds

Statement of funds - current year

Unrestricted funds
Designated funds
Equipment reserve
Contractual commitment reserve
Rental repairs and maintenance reserve
General funds
General Funds
Total Unrestricted funds
Restricted funds
Local Welfare Provision / Emergency
Assistance grant
Universal Support: Help to claim
Medway Hospital fund
Total of funds		 Balance at 1
April 2021
£
5,000
10,000
3,000
18,000
563,718
581,718
172,140
1,820
1,562
175,522
757,240		 Income
£
-
-
-
-
672,232
672,232
170,000
113,641
-
283,641
955,873		 Expenditure
£
-
-
-
-
(665,474)
(665,474)
(295,741)
(115,461)
(1,562)
(412,764)
(1,078,238)		 Balance at
31 March
2022
£
5,000
10,000
3,000
18,000
570,476
588,476
46,399
-
-
46,399
634,875

Local Welfare Provision

Citizens Advice Medway is now operating the Local Welfare Provision. This was a new scheme last year to support those in the local community who have come to struggle to raise funds for everyday living costs. This service is for last resort emergencies only. The criteria is strict and the funding pot fixed for a year so a thorough application process is followed.

Universal Support - Help to Claim

This project started in April 2019. This project supports clients applying for universal tax credits, to assist them with the somewhat complex applications. The grant is with the National Association of Citizens Advice Bureaux.

Medway Hospital Fund

This was a fundraiser during the Covid pandemic for decorating the ICU in Medway Hospital

Page 38

Medway District Citizens Advice Bureau

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

13. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
Designated funds
Equipment reserve
Contractual commitment
reserve
Rental repairs and
maintenance reserve
General funds
General Funds
Total Unrestricted funds
Restricted funds
Local Welfare Provision /
Emergency Assistance grant
Universal Support: Help to
claim
Medway Hospital fund
Total of funds		 Balance at
1 April 2020
£
5,000
10,000
3,000
18,000
320,687
338,687
13,870
1,794
-
15,664
354,351		 Income
£
-
-
-
-
946,623
946,623
542,240
119,631
6,850
668,721
1,615,344		 Expenditure
£
(5,000)
(10,000)
(3,000)
(18,000)
(685,592)
(703,592)
(383,970)
(119,605)
(5,288)
(508,863)
(1,212,455)		 Transfers
in/out
£
5,000
10,000
3,000
18,000
(18,000)
-
-
-
-
-
-		 Balance at
31 March
2021
£
5,000
10,000
3,000
18,000
563,718
581,718
172,140
1,820
1,562
175,522
757,240

Page 39

Medway District Citizens Advice Bureau

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

14. Summary of funds

Summary of funds - current year

Designated funds
General funds
Restricted funds		 Balance at
1 April 2020
£
18,000
320,687
15,664
354,351		 Balance at 1
April 2021
£
18,000
563,718
175,522
757,240
Income
£
-
946,623
668,721
1,615,344		 Income
£
-
672,232
283,641
955,873
Expenditure
£
(18,000)
(685,592)
(508,863)
(1,212,455)		 Expenditure
£
-
(665,474)
(412,764)
(1,078,238)
Transfers
in/out
£
18,000
(18,000)
-
-		 Balance at
31 March
2022
£
18,000
570,476
46,399
634,875
Balance at
31 March
2021
£
18,000
563,718
175,522
757,240
Summary of funds - prior year
Designated funds
General funds
Restricted funds

15. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2022
£
49,500
2
562,432
(23,458)
588,476		 Restricted
funds
2022
£
-
-
46,399
-
46,399		 Total
funds
2022
£
49,500
2
608,831
(23,458)
634,875

Page 40

Medway District Citizens Advice Bureau

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

15. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2021
£
25,925
2
601,044
(45,253)
581,718		 Restricted
funds
2021
£
-
-
175,522
-
175,522		 Total
funds
2021
£
25,925
2
776,566
(45,253)
757,240

16. Reconciliation of net movement in funds to net cash flow from operating activities

Net income/expenditure for the year (as per Statement of Financial
Activities)
Adjustments for:
Depreciation charges
Dividends, interests and rents from investments
Loss on the sale of fixed assets
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Net cash provided by/(used in) operating activities		 2022
£
(122,365)
14,235
(100)
96
30,642
(21,795)
(99,287)		 2021
£
402,889
10,846
(152)
-
(12,975)
22,306
422,914

17. Analysis of cash and cash equivalents

Cash in hand
Total cash and cash equivalents		 2022
£
599,175
599,175		 2021
£
736,268
736,268

Page 41

Medway District Citizens Advice Bureau

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

18. Analysis of changes in net debt

Cash at bank and in hand At 1 April
2021
£
736,268
736,268		 Cash flows
£
(137,093)
(137,093)		 At 31 March
2022
£
599,175
599,175

19. Pension commitments

The Charity operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Charity in an independently administered fund. The pension cost charge represents contributions payable by the Charity to the fund and amounted to £1,667 (2021: £1,633) were payable to the fund at the Balance sheet date and are included in creditors. The amount recognised as an expense in the year was £7,968 (2021: £7,622).

20. Operating lease commitments

At 31 March 2022 the Charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years		 2022
£
75,636
302,544
-
378,180		 2021
£
78,997
302,544
75,636
457,177

Page 42

Medway District Citizens Advice Bureau

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

21. Related party transactions

The charity's principal funder is Medway Council. The charity's CEO, Dan McDonald is a councillor on Medway Council. During the year, income of £446,937 (2021 - £738,378) was received from Medway Council and payments of £Nil (2021 - £Nil) were payable to the Council. At the balance sheet date no income or expenditure was outstanding.

Medway Volunteer Centre, a charity of which Alan Street is a trustee, and Dan McDonald (Chief Executive Officer and Company Secretary) is the Chair, £Nil was charged (2021 - £5,395) for reimbursement of salaries, Pensions, administrative support/Financial consultancy and purchases made by Medway District Citizen's Advice Bureau on their behalf. £nil (2021 - £nil) was outstanding at the year end. Rent and Office/IT service costs charges totalling £20,153 (2021 - £13,680) were invoiced by Medway District Citizen’s Advice Bureau during the year. £1,712 (2021 - £nil) was outstanding at the year end.

Additional Recharges of £Nil (2021- £18,190) were made to MVC for making offices COVID Safe, access to online Counselling for Counsellors and other Misc. charges. Income of £nil (2021- £270)

Relate Medway and North Kent Limited, a charitable company of which Dan McDonald (Chief Executive Officer and Company Secretary) is the Chair, was charged £9,135 (2021- £11,388 for reimbursement of expenses ( IT,/other Office costs ) incurred by Medway District Citizen's Advice Bureau on their behalf. Rent and service charges totalling £23,040 (2021- £25,221) were invoiced by Medway District Citizen's Advice Bureau to Relate Medway and North Kent Limited during the year. £3,866 (2021- £nil) was outstanding at the year end.

Additional Recharges of £nil (2021- £14,239.24) were made to Relate for making offices COVID Safe, Security and access to online Counselling for Counsellors and other Misc.

Page 43