citizens. advice medway citizens advice Solving problems. changing lives The difference we make Annual Accounts 2023 - 2024 We are Citizens Advice Medway Our charity was founded in 1939. Since then, we've provided free. confidential and independent advi￿, 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 tum 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 Medway twitter.comlCAB Medway Like us on Facebook facebook.comlMedwayCAB Medway District Citizens Advice Bureau (A company limited by guarantee) Contents Page Reference and administrative details of the Charity, its Trustees and advisers Trustees, report Trustees, responsibilities statement Independent examlner's report Statement of fTnan¢ial actlvities 2-18 19 20 21 Balance sheet 22 Statement of cash flows 23 Notes to the financlal statements 24-38 Medway District Citizens Advlce Bureau (A company lirnited by guarantee) Reference and admlnistrative details of the Charity. its Trustees and advisers For the year ended 31 March 2024 Trustees D J Ainsley, Chair P E Murray O D Martin A D Buckett, Treasurer Company registered number 05568569 Charity registered number 1115644 Registered office Kingsley House 37-39 Balmoral Road Gillingham Kent ME7 4PF Company secretary D McDonald Chief executive officer D McDonald Accountants Kreston Reeves LLP Chartered Accountants Montague Place Quayside Chatham Maritime Chatham Kent ME4 4QU 8ankers Natwest Weslein Avenue Waterside Chatham Maritime Kent ME4 4RT Independent Examiner Samantha Rouse FCCA DChA Kreston Reeves LLP Montague Place Quayside Chatham Maritime Kent ME4 4QU Page 1 Our service is invaluable to our local community and without our volunteers we would not have a service to offer. Even though the volunteers role can be very demanding and at times stressful. Each and every person that volunteers gives more than is asked. We would like to take this opportunity to thank our volunteers for their continued hard work and commitment. Chaii s Annual Report On behalf of the Boai'd of Trustees may I pi-esent our annual report for 202312024 l joined tlie Boai'd in May 2011 and was elected Vice Chaii. in Januaiy 2012, In Septeinbei',2015, the Cui'i'ent Cliaii. Stepped down and I was voted ChaiL', by the Ti'ustee Boai-d. Pt'ior to this I l)ave woi'ked cxtensively in tlie local aii)Inuttity willi vai'ious oiuanisatioi)s. Charities and Schools. foi. Ilie last 20 years. The iiuinbei. aiid i?nge of people ivho turn to citi7.ens Advice Medway for advice and suppoi't is foi'evei. increasing. In pait tliis i'eflects the growlng pressures on people's lives, but also th81 Citizens Advice Medway is delivering a greatei. numbej, of Se￿IceS by securing local contracts tlirougli the competitive tendering piDcess. Fiiitther in this I'epoi't yoii will find contribiitions from our Chief Executive and the Boai'd of 'fi'ustee's Tirasurei.. Both iepoi'ts outlinc in more detail the seiyice developmenls over tlie past yeai. and th¢ annual financial outcome. 'rhis yeai. lias continued the ti'end of challenges we've seen over the past few years wilh Bi'exit, COVIDI 9, and now the Cost of Living Crisis. The most vulnei?ble in oui. society aiE always the ones most iinpacted whenever a nation wide ci'isis lil coinputeis, faxes, photocopie￿ etc. will nced replaceinent on a thj'ee to five year cycle. 4. As the i'eceiptofgrnnts and contractsd income can occasionally be laterthan planned, thei'e is a need to pi'ovide sl)oit let'm finaiicial covei., to allow foi. the payttient of on- going costs, until ￿'ants ale evcnlually irceived. 5, Tlie future of the Company is paitly dependent upon sufficient funds being pi'ovided by local and national government. As these pi'ovidei's of income are subject to tlie vagaries of governiiient spending and the gene￿1 econoinic climate, it is possible that the casli flow could slow down sigiiificantly, or diy up totally, depeiidciit upon the competing calls on limited i'esources. In the ¢8se of closure, it is deemed pi'udent to allow foi- the following factois. Statutory rediindancy ot" the statr. Payment of costs on leasehold oi. licensed preniises, and associated iteins iintil the lease or liceiise can be assigiied, oi. tli¢ le&ge expii-es, whichevei. is the soonei.. iii. Payment of outstsnding liabilities. The Reserve Policy is reviewed by the Tiwiees at least annually. The Ti'ustees can, at any futui'e date, deterniine tliat a part of the reserves cali be utilised for a specific pui'pose, in wl)icli case those funds would be treated as designated funds. Restricted Fullds I'he company has contracts with Healthw2tch. The use of funds outside tlie tei'ms of the contract LS pi'ohibited, with the balance of funds to be ￿turned on completion of tlie contiact. 13 1.hc company has a contract with its national association, Citizens Advice. to provide debi advice to tenants of Registered Social Landloi'ds. The funding comes fi'om the Depaittnent foi. Biisiness, Innovation & Skills. Curi'ent restricted 1.unds stand at £20,599 (2023: £17,745) and ivill be held to meet any Iinanticipated expenses associated with tlie specific piojects. Uiii'esti'ieted Funds The Ti'ustees believe that Medivay CA should hold financial reseives in ordei. to ensuit that the chai'ity can coiitinue to opeiTdte and meei Ihe needs of clieiits of unforeseen and potentially finanLially damaging circumstaiices ai-ising. Currenr Ui)resli'icted funds stand at £697,841. The Trustees considei. that it would be prudev]t to set aside an amount equivalcnt to Four months opei-ating expenditure to meet the cost of contra¢lual ai'iangements should there be a sliort term bl'eak iii funding. this is estimated at £300,549. Designated Funds In addition, unresti'icted funds have been designated to the following purposes.. Equipment Resei-ve. 'I'hougli it has been successful iji seeking funding io siippori IT infrasli'uctiii'e thi'ough cxtet'nal sources, the Boai'd considci3 that there is a need foi. a I'escive to be ¢Jeated to suppoit the ongoing I'eplacement of the TT infrastructUlE at Medway Citizens Advice. The reseive to sland at £5,000. Conli"actual Coinmitmellt Reserve At pi'esent, the Boai'd does not considei. that therc is a need to set aside funds foi. i'eduiidancy. Howevet., the expei'ience of Citizens Advice Medway over Ihe last tiyo years lias encouraged tlie Boai'd to ci'cate a reserve to covei. disciplinary andloi. gi'ievance at £10,000. Preinlses The Boai'd considcrs that a Irserve of £3,000 is set aside Review of reserves policy Resei'ves at'e monitoitd at evely quartei'ly meeting of the Finance aiid Rcsouices Sub Coinmittee, the Committee will ensui'¢ that Irsetves al'e not unduly affected by unanticipated expenses and ait sufficient foi- the needs identified in this i'eseives policy. This reseiwes policy is monitored by the BoaiKt ofTI'ustees annually when tlie Audited Accoiints become available, oj. more frequently as circumstances dictate. Pi'intipal Fundftng We have divei?ified oui. funding this year, looking to different funders with no LEliance on Local Govet'iiment. 14 STIIUCTURI GOVERNANCE AND MIINAGEMENT CONSTITUTJON The company is constituted iindei. a Memorandutn of Association dated 20tlI Septembei. 2005. It is a chai'ity registered with the Chai-ity Comtnission foL Englaiid and Wales. Method of Appointinent or Election of Trustees Ti'ustees al'e recruited fl'om a wide range of backwY)unds to ensuiE an appi'opriate mix of knowledge, skills and expei'ience and to mirroi. the Socal community pi'ofile. Tlie manageinenl of the company is the Itsponsibility ofthc Trustees who are elected and co- opted iindei. the tei'ms of the Aiticles of Association. Only Trustees are meinbei's of tlie con)pany, The powei. of appointment of -fi'uste¢s is vested in the existing Tiustres, subject ta i'atification at tlic Annual General Mecting. Policies Adopted For the InductlOD and Training of Trustees New Trustees ale provided witli an induction pack and are invited to attend meetings with the company's executive managenient. Dui'ing the yeai., new and existing'fi'ustees meet to I'eview tFLe coinpany's opci-ations and plans. All trustees are encouraged to develop tlieir skills basc. Tlie National Citizens Advice has a range of support seivices foi. Trustces, ii)cluding Cablink, which publishes a wide range of news and informatioii, and Bureau Management Infoi'mation Systems (BMIS) which provides policies, guidance tools aiid standat documents. Organi8ational Structuve and Decisioii Making The 'fi'ustees have legal responsibility foi. the genei-al conirol and management of the coiiipany, iiicluding financial management and control. Tlie Ti'ustees al'e I'esponsible for ensui'ing that tlic company complies with the Citizens Advice Menibership Sclieine, cliai'ity legislation and company law. Day-to-day nianagement is delegated to the Chief Executive Officel. (CEO), Mr D McDoiiald. The TrLlStees meet on at least four occasions in each year. The quorum at sucli meetings is one third of the total numbei. of current members. The company's financial position is reviewed at each meeting of tl)e Ti'ustee Board. Medway District Citizens Advice Bureau Ltd is a membei. of Citizens Advice, the operating name of the National Association of Citizens Advice But'eaux, which pi'ovides a framework for standards of advice and casework management as well as monitoi'ing progress against these standai'ds. Operating policies al'e independently detennined by tlie ti'ustee board of Medway Disti'ict Citizens Advice Bureau Ltd in ol'der to fulfil its C]￿rItable objects aiid coinply with the national membei'ship irquirements. 15 Relate(I Party Relationsljips The chai'ity co-opeiBtes and li¢iises with a nuii)ber of otliej. advisory seivices, local cliai'ities and slalutory seivices on behalf of clients. Where one of the trustees liolds Ihe positioii of li'ustee oi, dii'ector of aiiothei. cliai-ity they may be involved in discussions regai'ding that othei. cliat'ity bLIt not in the ultimale decision niaking process. Risk Manageineiit Tlie I'i-LlStee Board have completed a coi-porate i'isk manageInent exerctse. A t'isk assessnieJ)t is annually considered by the ti'ustee board as part of theÈt' business planning pi'ocedlires. The ti'ustees I'ecognise that any majoi. risks to which the chai'ity is exposed need to be I'eviewed and systeins pul in placc to iiiitigate those risks. To thal end the company is coiitillually monitoi'ing and managing its I'tsk, i'eviewing risk and ensuring actioij plans are in place to iiiitigate ils key risk airas. Included in extei'nal i'isk5 IS that uf Ilie loss of funding. The effects of this have been niinimised by the procedui'cs in place, which have resulted iji funding being secui'ed fi'om a vai'iety of sources. Tlie chai'ily continues to seek to divei-sify its funding sources. Intei-nal I'isks aiE miiiiinised by tlie implementalion of pi'ocediiies for autliorisalion of all Iransactions and PLY)jects and to ensure consistent qiial ily of deliveiy foi. all opei-ational aspects of thc cliai'ity. These pi'ocedutes are periodically reviewed to ensure tliat they still meet the needs of the chai'ity. Widei. Netivoi'k Medway District Citizens Advice Bureau is a member of Citizens Advice UK, tlie opei'ating iiame fot. the National Association of Cili£ei)s Advice Bui'eaiix, wliicli pi'ovides a fi'amework foi. standards of advice and casewoi'k managenient as well as monitoi'ing p1-0￿esS against tliese standards. FUTURE DEVELOPMENTS Achievements and Perforniance Our mission We sort out PA'oblems together, for good We delivei. this mis5ioiI by: Delivei'ing services INponsive to community need E￿poWerIng citlzens to understand and exeicise their rights and responsibilities Preventing piY)blems through education and ts?ining Influencing social policy to acliieve positive change 16 Wliilst adhering to the four cili7.ens Advice pi'incAples on wliich the service was fouiided; offering advice tliat is: Indepeiident Fl'ee Confidential Impartial Oui. objectives have been designed lo meet the needs of the local coinmunity? as well as suppoi'ting the achievement of the iiatiollal Citizeiis Advice strategic aiins, whicli are: We'll Inake it easy to get advice We'll be more influential We'll work together as one service We'll become even more Si￿tainable and effective 17 Our plan Our Vision, Misslon and Values undei'pin OLII. Business and Developmeiit Plaii 2021 2025 Plan objectives Inct'ease access to high quality advice, pai'ticulai'ly for those in gleatest need Sti'engihen the effectiveness of our reseairh and campaigns work, particularly locally Develop and deliver wot'k to prevent problems from staitiiig oi. IEcui'ring Build oi) our pai'tnership working to strengilien services foi. local people Fociis oui. r&soui'ces on achieving positive outcomes foi. clients aiid value foi. tnoney Set an exaniple as a good employer, providing quality training and skills development Aiid also 5UPPOI't the "Stand up for Equality" objectives, which are: Challenge discrlniiiialion through advice by identifyiiig Disci'imination ai)d human rights issues. Pi'omote equality through advocacy Value diveisity throiigh our roles of eiiiployei., volunteer agency and contractoi, by pioviding visible and committed Icadersliip, developing a slrdtegic appi'oach to diveisity. Medway District Citizens Advice Bureau (A company limited by guarantee) Statement of Trustees. responsibilities For the year ended 31 March 2024 The Trustees (who are also the directors of the Charity for the purposes of company lawl are responsible for preparing the Trustees, report and the financial statements in accordan￿ 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 . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of ils incoming resources and application of resources, including its income and expenditure. for thal 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 of the Charities SORP (FRS 102): make judgments and accounting estimates that are reasonable and prudent- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2Q06. They are also responsible for safeguarding the assets of the Charity and hence for laking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by order of lh8 members of the board of Trustees and signed on ils behalf by.. Date: Page 19 Medway District Citizens Advice Bureau (A company limited by guarantee) Independent examiner's report For the year ended 31 March 2024 Independent examinels report to the Trustees of Medway District Citizens Advice Bureau ('the Charity,) I report to the charity Trustees on my examination of the accounts of the Charity for the year ended 31 March 2024. Responsibllities and basis of report As the Trustees of the Charity (and ils directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 {'the 2006 Act'l. Having satisfied myself that the accounts of the Charity are not required to be audited under Part 16 of the 2006 AGI and are eligible for independent examination, I report in respect of my examination of the Charitls accounts Carried out under section 145 of the Charities Act 2011 {'the 2011 Act.). In carrying out my examination I have followed the Direclions given by the Charity Commission under section 145(5){bl of Ihe 2011 Act. Independent examiner's statement Since the Charity's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Ad. l confirm thal l am qualified to undertake the examination because l am a member of the Association of Chartered Certified Accountants , which is one of the listed bodiès. I hav8 Gampleted my examination. I confirm that no mallers have come to my attention in connection with the examinalion giving me cause lo believe: accounting records were not kept in respect of the Charity as required by section 386 of the 2006 Act,, or the accounts do not accord with those records,. or the accounts do not comply with the accounting requirements of seCt￿n 396 of the 2006 Act other than any requirement that the accounts give a 'lrue and fairf view which is not 8 matter considered as part of an independent examination., or the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charilies {applicable lo 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 lo enable a proper understanding of the accounts to be reached. This report is made solely to the Charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Mywork has been undertaken so Ihat I might state to the Charitls Trustees those matters l am required to state to them in an Independent examinels report and for no other purpose. To the fullest extent permilted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity's Trustees as a body. for my work or for this report. Signed.. Dated: 5 December 2024 Samantha Rouse FCCA DChA Kreston Reeves LLP Chartered Accountants Monlague Place Quayside Chatham Maritime Chatham Kent ME4 4QU Page 20 Medway District Citizens Advice Bureau (A company limited by guarantee) Statement of financial activitles (incorporating income and expenditure account) For the year ended 31 March 2024 Restricted Unrestricted funds funds 2024 2024 Total funds 2024 Total funds 2023 Note Income from: Donations ané legacies Charitable activities Investments Other income 32,500 32,332 164,042 621,799 9,362 68,958 196,542 654.131 9,362 68,958 213,684 557,525 2,816 79,609 Total income 64,832 864,161 928,993 853,634 Expenditure on: Charitable activities 61,978 839,661 901,639 779,423 Total expendlture 61.978 839.661 901,639 779,423 Net movement in funds 2,854 24,500 27.354 74,211 Reconciliatlon of funds: Total funds brought forward Net movement in funds 17.745 2,854 691,341 24,500 709,086 27,354 634,875 74,211 Total funds carried forward 20,599 715,84 736,440 709,088 The Slalement of financial activities includes all gains and losses recognised in the year. The notes on pages 24 to 38 form part of these financial statements. Page 21 Medway District Cilizens Advice Bureau (A company limited by guarantee Registered number: 05568569 Balance sheet As at 31 March 2024 2024 2023 Note Fixed assets Tangible assets Investments 11 12 37,690 39,925 37,692 39,927 Current assets Debtors Cash at bank and in hand 13 11,226 678,056 720,014 720,014 689,282 Creditors.. amounts falling due within one year 14 (21,2661 (20.123) Net current assels 736,440 709,086 Total net assets 736,440 709,086 Charlty funds Restricted funds Unrestricted funds 15 15 20,599 715,841 17,745 691,341 Total funds 736,440 709,086 The Charity was entitled to exemption from audrt under section 477 of the Companies Act 2006. The members have not required the company lo obtain an audit for the year in question in accordance with section 476 of Companies Act 2006. The Trustees acknowledge their responsibililies for complying with the requirements of the Act with respect to accounting records and preparation of financial slatements. 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 and signed on their behalf by.. D J Ainsley (Trustee) Dale.. 5th De￿mber 2024 The notes on pages 24 to 38 fomi part of these financial statements. Page 22 Medway District Citizens Advice Bureau IA company limited by guarantee) Statement of cash flows For the year ended 31 March 2024 2024 2023 Cash flows from operatlng activities Net cash used in operaling adivities 41,419 79,602 Cash flows from investing activities Dividends, interests and rents from investments Purchase of tangible fixed assets Net cash provided byl{used in) Investing activities Cash flows from financing activlties 9,362 (8,823) 2,816 {3,537) 539 (721) Change in Cash and cash equlvalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 41,958 78,8B1 678,056 599,175 720,014 678,056 The notes on pages 24 to 38 form part of these financial statements Page 23 Medway District Citizens Advice Bureau (A company limited by guarantee) Notes to the financial statements For the year ended 31 March 2024 General information Medway District Citizens Advice Bureau is a charitable company, registered in England and Wales with the charity number 1115644 and company number 05568569. The registered office of the Charity is Kingsley House, 37-39 Balmoral Road. Gillingham, Kent. ME7 4PF. Accounting policies 2.1 Basls of preparatlon of flnancial statements The financial statements have been prepared in accordance wilh the Charities SORP (FRS 102) Accounting and Reporting by Charrties.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with Ihe Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 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 definilton of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless othe￿iSe stated in the relevant accounting policy. The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest £. 2.2 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 doubl 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 lo adopt the going concem basis of accounting in preparing Ihe financial statements. 2.3 Income All income is recognised once the Charity has entitlement to the income, it is probable that Ihe income wll 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 balsnce of income received for specific purposes but not expended during the pertod 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 accNed. Income lax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised al the lime ofthe donation. Income lax recoverable in relation to investment income is recognised at the time the inveslment 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. Page 24 Medway District Citizens Advice Bureau {A company limited by guarantee) Notes to the financial statements For the year ended 31 March 2024 Accounting policies (continued) 2.4 Expenditure 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 economi¢ benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support cosls involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single aclivÉty are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocat8d on the portion of the asset's use. Expenditure on charitable aciivilies is incurred on directly underlaking the activities which further the Charity's objectives, as well as any associated support costs. All expenditure is inclusive of irrecoverable and recoverable VAT. 2.5 Government grants Government grants relating to tangible fixed assets are treated as deferred income and released to the Statement of financial activities over the expected useful lives of the assets conGern8d. Other granls are Gredited to the Statement of financial activities as the related expenditure is incurred. 2.6 Interest receivable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity- this is normally upon nolification of the interest paid or payable by the instilution with whom the funds are deposited. 2.7 Taxatlon The Charity is considered lo pass the tests sel out in Paragraph I Schedule 6 of the Finance Act 2010 and therefore it meets the definilion of a charilable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxalion in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax AGI 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 PUTposes. 2.8 Tangible fixed assels and depreciation Tangible fixed assets costing £250 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are initially ￿COgnised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into ils intended working condition should be included in the measurement of cost. Page 25 Medway Distrlct Citizens Advtce Bureau (A company limited by guarantee) Notes to the financial statements For the year ended 31 March 2024 Accounting policies {continued) 2.8 Tangible fixed assets and depreciation Icontinued) Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, . Depreciation is provided on the following basis: Fixtures and fittings Office equipment Computer equipment 200A reducing balance 20% reducing balance 33°A reducing balance 2.9 Investments Fixed asset investments are a fomi of financial inslwment and are initially recognised at their transaction cost and subsequently measured al fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and 105ses, whether realised or unrealised, are combined and presented as 'Gainsl{Lossesl on investments, in the Statement of financBI activities. 2.10 Debtors Trade and other debtors are recognised at the seltlemenl amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any tr8de discounts due. 2.11 Cash at bank and in hand Cash at bank and in hand includes cash and short-temi 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. 2.12 Llabllltles and provisSons Liabilities are recognised when there is an obligation at the Balance sheet date as a resull 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 lo settle the debt or the amount it has received as advanced payments for the goods or seNices il must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of Ihe 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 specifi'c to the li8bilily. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost. 2.13 Financial Instruments The Charity only has financial assets and financial liabilities of a kind Ihat qualify as basic financial instruments. Basic financial instruments are initialty recognised al transaction value and subsequently measured at Iheir settlement value with the exception of bank loans which are subsequently measured at amortised cosl using the effective interest method. 2.14 Operating leases Rentals paid under operating leases are charged to Ihe Statement of financial activities on a straight- line basis over the lease term, Page 26 Medway District Citizens Advice Bureau (A company limited by guarantee) Notes to the financlal statements For the year ended 31 March 2024 Accounting policies (continued) 2.15 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. 2.16 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 Twstees for particular purposes. The aim and use of each designated fund is sel 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 reslricted fund is set out in Ihe notes to the financial statements. Critical ac¢ountlng estlmates and areas of judgment Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Critical accounting estimates and assumptions: The Charity makes estimates and assumptions conceming the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that h8ve a significant risk of causing a material adjustment to Ihe carrying amounts of assets and liabilities within the nexl financial year are discussed below. Page 27 Medway District Citizens Adv(ce Bureau (A company limited by guarantee) Notes to the financial statements For the year ended 31 March 2024 Income from donations and legacies Restricted Unrestricted funds funds 2024 2024 Total funds 2024 Total funds 2023 Grants 32,500 164,042 196,542 213,684 Total 2023 213,684 213,684 Charitable actlvities Reslricted Unrestricted funds funds 2024 2024 Total funds 2024 Total funds 2023 Medway Council gran18 Specialist advice Face to Face Local Welfare Provision HM Prison Outreach Swale CAB Medway Foodbank The Hospital Saturday fund HACO LAA Repayment We Are Digital CITAIEAP 32,332 265,146 39,200 181,545 297,478 39,200 181,545 214,675 34,679 199,354 44,377 539 17,508 38.813 1,000 5,040 910 630 180 180 64,687 64,687 5,040 5,040 736 736 65,265 65,265 32,332 621,799 654.131 557,525 Total 2023 44,377 513,148 557,525 Page 28 Medway District Cttizens Advice Bureau {A company limited by guarantee) Notes to the financial statements For the year ended 31 March 2024 Investment income Unrestricted funds 2024 Total funds 2024 Total funds 2023 I nlerest receivable 9.362 9.362 2,816 Total 2023 2,816 2,816 Other Income Unrestricted funds 2024 Total funds 2024 Total funds 2023 Leltings income and recharges Other income 65,420 3.538 65,420 3,538 79,609 68,958 68,958 79,609 Total 2023 79,609 79,609 Page 29 Medway District Citizens Advice Bureau (A company limited hy guaranteel Notes to the financial statements For the year ended 31 March 2024 Charitable Activities Restricted Unrestricted funds funds 2024 2024 Total funds 2024 Total funds 2023 Staff costs Rent and seNice charges I nsuran Communication costs Printing, postage and stationery Motor and travel expenses Training and recruitment Staff and volunteer expenses Repairs and renewals Subscriptions Legal, professional and consultancy fees Payroll and accounts administration Depreciation Audilors remuneration Trustee adminlmeeling expense Other governance costs LAF disbursements Irrecoverable input VAT B8nk charges Grant expenditure Sundry expenses 419,720 126,311 40,214 16,720 6, 533 1,300 1,458 22,462 103,585 1,624 5.587 27,765 11,058 3,600 633 624 1,271 4,756 791 37.878 5,771 419,720 126,311 40,214 16,720 6,533 1,300 1,458 29,021 103,585 1,624 5,587 27,765 11,058 3,600 633 624 1,271 4,756 791 93,297 5,771 359,801 112,841 46,924 20,196 3,001 445 2,601 9,550 21,221 8,783 10,953 34,862 13,112 4,000 990 1,324 11,224 34,455 624 72,462 10,054 6,559 55,419 61.978 839,661 901,639 779,423 Total 2023 73,031 706,392 779,423 Page 30 Medway District Citizens Advice Bureau (A company limited by guarantee) Notes to the financial statements For the year ended 31 March 2024 Staff Gosts 2024 2023 Wages and salaries Social security costs Contribution to defined contribution pension schemes 377,402 34,333 7,985 327,036 26,293 6.472 419,720 359,801 The average number of persons employed by the Charily during the year was as follows: 2024 No. 2023 No. 10 13 The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was.. 2024 2023 In the band £60,001- £70,000 The total employment benefits including employers, pension contributions and employers, national insurance of the key management were £148,430 (2023- £169,028) 10. Trustees. remuneration and expenses During the year, no Trustees received any remuneration or other benefits (2023 - £NIL). During the year ended 31 March 2024. no Tiustee expenses have been incurred <2023- £NIL). Page 31 Medway District Citizens Advice Bureau {A company limited by guarantee) Notes to thè financial statements For the year ended 31 March 2024 11. Tangible fixed assets Fixtures and fittings Office equipment Computer equipment Total Cost or valuation At 1 April 2023 Additions 1,398 76,985 42,960 8,823 121,343 8,823 Al 31 March 2024 1,398 76,985 51,783 130,166 Depreciation At 1 April 2023 Charge for the year 1,292 21 42,142 6,969 37,984 4,068 81,418 11,058 Al 31 March 2024 1,313 49.111 42,052 92,476 Net book value At 31 March 2024 85 27,874 9,731 37,690 At 31 March 2023 106 34,843 4,976 39,925 Fixed asset Investments Investments In subsidiary companies Cost or valuation At 1 April 2023 At 31 March 2024 Principal subsidiaries The following were subsidiary undertakings of the Charity.. Names Holding Included in consolidatlon Medway Healthwatch Ltd Medway Healthwatch CIC 1000/0 Yes 1000/0 Yes The financial results of the subsidiaries forlhe yearwere- Page 32 Medway District Citizens Advice Bureau {A company limited by guarantee) Notes to the financial statements For the year ended 31 March 2024 12. Fixed asset investments (continued) Names Aggregate of share capital and resenfes Medway Heallhwatch Ltd Medway Heallhwatch CIC 13. Debtors 2024 2023 Due wlthin one year Prepayments and accrued income 11,226 11,226 14. Credltors: Amounts falling due withln one year 2024 2023 other taxation and social security Other creditors Accruals and deferred income 10,710 3,846 6,710 8,555 1,573 9,995 2q,266 20,123 Page 33 Medway District Citizens Advice Bureau (A company limited by guarantee) Notes to the financial statements For the year ended 31 March 2024 15. Statement of funds Statement of funds - current year Balance at 31 March 2024 Balance at April 2023 Income Expenditure Unrestrlcted funds Designated funds Equipment reseNe Contractual commitment reseNe Rental repairs and maintenance reserve 5,000 10,000 3,000 5,000 10,000 3,000 18,000 18,000 General funds General Funds 673,341 864,161 {839.661) 697,841 Total Unrestricted funds 691,341 864,161 (839,661> 715,841 Restrlcled funds Local Welfare Provisionl Emergency Assistance grant Community Bus 17,745 32,332 32,500 {50,077) (11,901) 20,599 17,745 64,832 (61.978) 20,599 Total of funds 709,086 928,993 (901,6391 736,440 Local Welfare Provislon Citizens Advice Medway operates the Local Welfare Provision. This was a new scheme 2 years ago to support those in the local community who have come to struggle to raise funds for everyday living cosls. This service is for Ihe last resort emergencies only. The criteria is strict and the funding pot fixed for a year so a thorough application process is followed. Nationwide Community Bus NATIONWIDE COMMUNITY FUNDING IMPACT REPORT- Project Outline: Provide funding lo help support Citizens Advice Medway provide outreach Se￿iceS across the Medway Towns, including urban areas. This will help reduce those residents slruggling with the Cost of Living, Debt, Homelessness and Domestic Abuse. Project ran from Jan 14 to Jan 25. so the bilk of expenditure wll be in the current financi81 year. Page 34 Medway Dlstrict Citlzens Advice BU￿a￿ (A company limited by guarantee) Notes to the financial statements For the year ended 31 March 2024 15. Statement of funds (continued) Statement of funds - prior year Balance at 31 March 2023 Balance at 1 April 2022 Income Expenditure Unrestrlcted funds Designated funds Equipment resetve Contractual commitment reserve Rental repairs and maintenance reseNe 5,000 10.000 3,000 5,000 10,000 3,000 18,000 18,000 General funds General Funds 570,476 809,257 {706,392) 673,341 Total Unrestrlcted funds 588,476 809,257 (706,392) 691,341 Restricted funds Local Welfare Provisionl Emergency Assistance grant 46,399 44,377 {73,031) 17,745 Total of funds 634,875 853,634 (779,423) 709,086 16. Summary of funds Summary of funds - current year Balance at 31 March 2024 Balance at 1 April 2023 Income Expenditure Designated funds General funds Restricted funds 18,000 673,341 17,745 18,000 697,841 20,599 864,161 64.832 1839,6611 (61,978) 709,086 928,993 1901,639) 736,440 Page 35 Medway District Citizens Advice Bureau (A company limited by guarantee) Notes to the financial statements For the year ended 31 March 2024 16. Summary of funds {continuedl Summary of funds - prior year Balance al 31 March 2023 Balance at 1 April 2022 Income Expenditure Designated funds General funds Restricted funds 18,000 570,476 46.399 18,000 673,341 17,745 809.257 44,377 (706,392) {73,031) 634,875 853,634 (779,423) 709,086 17. Analysis of net assets between funds Analysls of net assets between funds - current period Restricted Unrestricted funds funds 2024 2024 Total funds 2024 Tangible fixed assels Fixed asset investments Current assets Creditors due within one year Difference 37,690 37,690 32,500 687,514 {21,266) 11,901 720,014 {21,266) (11,901) Total 20.599 715,841 736,440 Analysis of net assets between funds - prior period Restricted Unrestricted funds funds 2023 2023 Total funds 2023 Tangible fixed assets Fixed asset inveslments Current assels Creditors due within one year 39,925 39,925 17.745 671,537 {20,123) 689,282 {20,123} Total 17,745 691,341 709,086 Page 36 Medway District Citizens Advice Bureau (A company limited by guarantee) Notes to the financial statements For the year ended 31 March 2024 18. Reconciliation of net movement in funds to net cash flow from operating activities 2024 2023 Net income for the period (as per Statement of Financial Activities) 27,354 74,211 Adjustments for: Depreciation charges Dividend5, interests and rents from investments Decreasel(increase) in debtors Sncreasel{decreasel in creditors 11,058 19.3621 11,226 1,143 13,112 (2,816) (1,570) (3,335) Net cash provided by operating activitles 41,419 79,602 19. Analysis of Gash and cash equivalents 2024 2023 Cash in hand 720,014 678,056 Total cash and cash equlvalents 720,014 878,056 20. Analysls of changes in net debt At 1 April 2023 Cash flows At 31 March 2024 Cash at bank and in hand 678,056 41.958 720,014 678,056 41,958 720,014 21. Penslon commitments The Charity operates a defined contribution pension scheme. The assets of Ihe scheme are held separately from those of the group in an independently administered fund. The pension cosl charge represents contributions payable by the Charity to the fund and amounted lo £3,846 {2023 - £1,573) 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 £7.985 (2023: £6,472). Page 37 Medway District Citizens Advice Bureau IA company limited by guarantee) Notes to the financial statements For the year ended 31 March 2024 22. Operating lease commitments At 31 March 2024 the Charity had commilments to make future minimum lease payments under non- cancellable operating leases as follows.. 2024 2023 Nol laler than 1 year Later than 1 year and not later than 5 years 75,636 151,272 75,636 226,908 226,908 302,544 23. Related party transactions The chaiills principal funder is Medway Council. The charitls CEO. Dan McDonald is a councillor on Medway Council. During the year, income of £265.325 {2023 - £339,406) was received from Medway Council and payments of £Nil12023- £81) 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 truslee, and Dan McDonald (Chief Execulive Officer and Company Secretary) is the Chairwas charYJed for reimbursement of Rent, Office, IT service and Wages costs charges totalling £26,697 (2023- £25.241) were invoiced by Medway District Citizen's Advice Bureau during the year. Al the period end, there were no amounts outstanding (2023.. £Nill- Relate Medway and North Kent Limited, a charitable company of which Dan McDonald (Chief Executive Officer and Company Secretary) is the Chair, was charged for reimbursement of Rent, Office, IT service and Wages costs charges lotalling £54,139 (2023 - £42,255) were invoiced by Medway District Citizen's Advice Bureau during the year.At the period end, there were no amounts outstanding (2023.. £Nil). Dan McDonald, the Chief ExecutNe Officer and Secretary, claimed reimbursement costs of £12,314 (2023 - £24,095) for items purchased on behalf of the Charity via his personal credil card. At the period end, there were no amounts outstanding {2023: £Nil) Cilizens Advice Medway incurred expenditure totalling £300 {2023 £Nill for Healthwalch Medway CIC, a community interest company of which David Ainsley (Chair) is a Director. At the period end. there were no amounts outstanding (2023.. £Nil) Page 38