**Charity Registration No. 1121988**
**Company Registration No. 6347304 (England and Wales)**
## **CITIZENS ADVICE SUNDERLAND**
# **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **CITIZENS ADVICE SUNDERLAND**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** Mr C Graham Mr T Taylor Doctor D W Reed Mr D R Wood Mr P Wallace Mr R Singh Ms N Islam (Appointed 27 May 2021) Mr Thomas Johnston (Appointed 29 July 2021) **Secretary** Mrs D Irving **Charity number** 1121988 **Company number** 6347304 **Registered office** 5a Waterloo Place Sunderland Tyne and Wear United Kingdom SR1 3HT **Independent examiner** Ian Whitfield ( BA FCA) Bede House 3 Belmont Business Park Durham DH1 1TW
## **CITIZENS ADVICE SUNDERLAND**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 7|
|Independent examiner's report|8|
|Statement of financial activities|9|
|Balance sheet|10|
|Statement of cash flows|11|
|Notes to the financial statements|12 - 22|
## **CITIZENS ADVICE SUNDERLAND**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
The trustees present their report and accounts for the year ended 31 March 2022.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the bureau's [governing document], the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
## **Objectives and activities**
The charity’s objects are to promote any charitable purpose for the public benefit by the advancement of education, the protection and preservation of health and the relief of poverty, sickness and distress in particular, but without limitation, for the benefit of the community in Sunderland and surrounding areas.
All of the charity’s activities focus on advice provision and support for public benefit and the work is carried out through face-to-face consultations, telephone advice and community talks/sessions.
Through free, independent, confidential and impartial advice, we aim to provide the advice people need for the problems they face and to improve the policies that affect people’s lives. We also recognise the positive value of diversity, promote equality and challenge discrimination.
Under normal circumstances, advice is provided through a number of channels including telephone, webchat and face to face. However, with the unanticipated pandemic and national lockdown, all of our services have been delivered remotely by telephone, webchat and email this year, due to our offices being closed.
## **Contribution of Volunteers**
Although very few in number at present, the organisation receives help and support in the form of voluntary assistance in administering the charity through its Trustee Board. In addition to the nine trustees, we currently benefit from having one volunteer, with others who we can call on to help one off events such as bag packs and manning information stalls.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the bureau should undertake.
## **Achievements and performance**
Despite the uncertain and difficult financial landscape, Citizens Advice Sunderland has performed well and has helped 13,400 clients this year with over 35,000 issues. Due to lockdown the pandemic, demand for debt and benefit advice has been constantly high and our telephone advice line and our drop in services continue to be extremely busy.
We continue to struggle to meet demand and we have put a hold on recruiting volunteers this year. On returning to the office, we planned to carry out a large scale volunteer recruitment drive to help meet the anticipated increase in demand following the end of lockdown and the furlough scheme. In preparation, we have been reviewing and revising our existing training plan to make it more robust, timely and allow for continual practise throughout.
- 1 -
## **CITIZENS ADVICE SUNDERLAND**
## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
We have a three year contract with Sunderland City Council to provide First Tier advice for those living in the East of Sunderland. This contract runs until November 2023 and it supports our daily drop in generalist service and benefit form filling service. We offer benefit, debt, employment and housing advice under the First Tier contract predominantly face to face. However, our Adviceline telephone service also helps to support the contract.
In addition to our First Tier contract, we offer money advice/debt support through the funding we receive from the Money and Pensions Service (MAPS). This is our largest contract which is managed through our national Citizens Advice body. Sunderland is one of the most indebted regions in the country and the area suffers from high levels of deprivation and high levels of unemployment and sickness. Despite the success of our Help to Claim service, we were unsuccessful in retendering for the contract. Fortunately, TUPE applies and the contract has been awarded to another local office nearby, so while we will be losing three members of staff, their jobs will be safe. We are also facing a difficult time ahead with a new commissioning process being undertaken by the Money and Pensions service which could have a huge impact on our organisation and services if we were to lose the contract.
Our ongoing contract with the Wise Group to provide Financial Capabilities to people on the Wise Steps programme, continues to do well. This programme is funded by the European Social Fund and the Big Lottery Community Fund and we work with other local stakeholders in preparing people to get back into work. We are working with other local support agencies to support clients with specialist advice and the partnership is proving very successful in providing clients with a holistic approach to getting them back into work. This contract is due to end in December of 2022 and we will carry forward what we have learned into the future.
Our grants with the British Gas Energy Trust and the Energy Redress Scheme are performing well and they are supporting the people of our community with energy and resilience support. Now more than ever before, are we offering a wrap around and holistic service to clients and we are seeing great benefits in this approach.
We have additional funding from the British Gas Energy Trust to offer a pilot scheme of working with our local Social Prescribing team offering home visits to support their beneficiaries with dedicated debt and benefit support. The six month pilot will help us to reach people who would not have used our services and make a difference to their lives.
We have had a number one off grants through Citizens Advice, Newcastle Building Society, Aviva and the Community Foundation to support ongoing energy work, financial capabilities and volunteer recruitment. These grants allow us to undertake one off projects that support our core service and help us to pilot ideas and target specific groups or areas that would benefit from dedicated support.
We end the year with a new contract from the Cumbria Northumberland Tyne and Wear NHS Foundation Trust to have a dedicated member of staff working from their three premises to support people with benefit/debt support at source. Research shows that the issues we see impacts on people’s health and wellbeing and early intervention can have a positive effect on people and their ability to cope. This contract will test the impact of introducing our services early into the process to see if makes a difference long term.
- 2 -
## **CITIZENS ADVICE SUNDERLAND**
## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
It has been another good year for securing income gains and writing off debts on behalf of clients and gains of just under £5.2 million were recorded. This is very similar to what we achieved last year and is good news for our clients and the local community.
Despite the pandemic, the difficulties of returning to the office and the uncertainty we are facing this year, the staff and volunteers have been outstanding. They adapted admirably to the lockdown and the urgent changes we have needed to make and they have been just as flexible in returning to the office and reopening our doors. We have an excellent and cohesive team who are all willing to go the extra mile to make a real difference to people’s lives. It is important that we take care of our greatest and most valuable asset, and the trustees are keen to look after the team’s wellbeing and our own mental health and resilience.
In terms of our premises, we have completely renovated the Galleries office in Washington. Since moving in in 2015, no improvements have been made and the office was dated and needed upgrading.
We are proud of our achievements, however, we have faced some difficult challenges and it has been an extremely tough year for us, our local community and the whole country. We anticipate that we will see an increase in demand next year and the economic and political landscape is uncertain. Nevertheless, we will continue to work very hard within the community to build a local network with other partner organisations and community groups to both promote the work the organisation does and to work in partnership to help meet the ever increasing need.
## **Financial review**
The organisation is primarily funded by grants from the Money Advice and Pensions Service to provide advice on debt and financial issues and the British Gas Energy Trust to provide support people energy and debt issues. We have two other major contracts which are the First Tier Service funded by Sunderland Council and Wise Steps, managed by the Wise Group and funded by the European Social Fund and the Big Lottery Community Fund. This year, we have received funding to provide Energy and Debt support from the British Gas Energy Trust (BGET) and the Energy Redress Scheme. Both of these grants complement our existing services and are a welcome addition to our services. They allow us to find ways of helping clients make savings through energy measures as well as deal with debts and maximise income cohesively. Other income comes from one-off projects, donations and bank interest.
The organisation ends the year with a surplus of £52,986 (2021: £117,858) which puts us in a strong position moving forward. Most of the savings come from salary savings and a reduction in office costs due to all staff working from home. Having lost some staff that have not been replaced, we need to rebuild our numbers and focus our attention on regrowth. We have no spare capacity to cover us for sickness or holidays and this is something we need to address if we are to achieve our goal of growth and meeting client demand.
Nevertheless, having reviewed the organisation’s current financial position, the Trustee Board is assured that the charity has adequate financial resources and is able to manage all known business risks going forward. The Management Committee has a reasonable expectation that it has adequate resources to continue in operation for the foreseeable future and believe that there are no material uncertainties that call into doubt its ability to continue as a going concern.
## **Investment Policy**
The Management Committee regularly reviews available investment products and seeks to invest reserve funds in low risk, short term investment products which provide the best interest rates attainable. To mitigate investment risk, diversification is limited to those institutions with a solid reputation and a strong credit rating.
- 3 -
## **CITIZENS ADVICE SUNDERLAND**
## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **Reserves Policy**
The Trustee Board has a policy for holding unrestricted reserves to protect the organisation from the impact of shortfalls in forecast income, unforeseen expenditure or planned expenditure that will support the delivery of its charitable objectives.
Reserves carried forward as at 31 March 2022 are £595,145 Unrestricted (2021: £649,866) and £390,018 Restricted (2021: £272,311), totalling £922,177 (2021: £922,177).
In light of the current climate and an uncertain future, the Trustee Board seeks to maintain a minimum of nine months’ (2022: £69,392) running costs in reserve. The unrestricted reserves position of reserves as at the 31 March 2022 continues to stay above that intended, however, with the additional staff, we believe that this will change in the coming year. Given the uncertainty of the funding landscape and the economic climate, it is important to remain prudent, agile and flexible
Any restricted balances held for the purpose of specific projects at year end do not form part of the reserves policy other than to spend the money in accordance with funders’ restrictions.
The trustees has assessed the major risks to which the bureau is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
## **Plans for 2022-23**
We expect that 2022 will be another busy year. With a cost of living crisis looming and rising energy costs, it’s likely that many people in Sunderland will be affected. In the coming year, our aim is to get out and about within the community to raise awareness of our services and encourage everyone to have a benefit check. We are seeing some major successes particularly with pensioners and disabled people who are missing out on a number of benefits they are entitled to. The Welfare Benefit system is complex and we want to ensure that everyone is claiming the right benefits to suit their needs and claiming all that they are entitled to.
With the support of our funders, we have the opportunity to work in outreach venues helping people to save energy, make better and informed choices and understand their rights. Demand for our services is already high and our drop in services are busy but we know that a lot of people aren’t aware of our services and how we can help them, so we need to invest in raising our profile and be in locations where people visit on a regular basis. This is undoubtedly resource heavy, but we feel it is a worthwhile investment to we reach people.
We are investigating the opportunity to have an information ‘bus’ which will visit supermarkets, community centres and doctors’ premises so that we will be seen and we can have informal chats with people passing.
The trustee board are reviewing our strategy and how we can reach more people and improve people’s lives and that will take priority. The first step will be to ensure the team’s wellbeing and to grow our numbers. We started the year with 29 staff but, because of uncertainty and contracts ending, we end the year with just 22. In order to meet existing demand, further investment is needed in additional resource and that will be predominantly in staffing.
In addition to the investment in the workforce, we are also looking to increase our numbers on the trustee board with a focus on diversity and those who have backgrounds in finance, HR, marketing and EDI.
We find ourselves coming out of a pandemic and straight into a recession, so we need to be equipped and ready to deal with high levels of demand, crisis and complex enquiries while meeting our funders’ requirements through KPIs and positive outcomes. We are in a fortunate position of having a solid financial base with a dedicated and hardworking workforce. Whatever the future holds, we will ensure that we will continue to provide an excellent and efficient service to those in our community but we need to protect our assets, starting with the team.
- 4 -
## **CITIZENS ADVICE SUNDERLAND**
## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **Structure, governance and management**
Citizens Advice Sunderland is a member of the National Association of Citizens Advice Bureaux (NACAB) which provides support and a framework of agreed memberships standards of advice and casework management. However, the organisation maintains its independence and all policy decisions are taken by the Trustee Board in meeting its charitable objects.
The charity was incorporated on the 20 August 2007 and is governed by its Memorandum and Articles of Association (as amended in 2012). Overall responsibility for governance rests with the Trustee Board.
The trustees, who are also the directors for the purpose of company law, and who served during the year were:
Mr C Graham Mr T Taylor Mr J Hicks Doctor D W Reed Mr D R Wood Mr A Holland Mr P Wallace Mr M Hankins Mr R Singh Ms N Islam Mr Thomas Johnston
(Resigned 13 July 2022)
(Resigned 29 April 2021)
(Resigned 8 September 2022)
(Appointed 27 May 2021) (Appointed 29 July 2021)
- 5 -
## **CITIZENS ADVICE SUNDERLAND**
## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
The trustees are also directors of Citizens Advice Sunderland for the purposes of Company Law. Starting the year with 10 trustees, the newly recruited Board members have been getting to grips with learning about the organisation and looking to the future. We now have a cohesive and ambitious Board of Directors who are keen to make a difference in our local community and the trustees are working hard on drawing up an achievable but ambitious strategic action plan.
The Trustee Board:
- sets the policy of the charity
- determines corporate strategy including setting key strategic objectives
- makes major decisions about the use of finances
All newly appointed trustees receive a Welcome Pack and a full induction using training and resources provided through the Citizens Advice intranet site, Skillbook. All trustees are encouraged to take up further training opportunities as appropriate and engagement with the wider service is undertaken throughout the year in participating in forums, conferences and consultations wherever possible.
The local Citizens Advice trustee board oversee the information security of all personal information of our clients, staff, funders and strategic partners that is processed. The local Citizens Advice hold joint responsibility for client data that is held in our case management system, with the national Citizens Advice Service. An information assurance management team exists to ensure the confidentiality, integrity and availability of all personal and sensitive data is maintained to a level which is compliant with the requirements the General Data Protection Regulation and Data Protection Act 2018.
We plan to carry out another trustee recruitment drive in the coming year to ensure that the work we have to do can be shared evenly amongst the board and that all meetings are quorate, particularly as many of our trustees have careers outside of the organisation. The Board have ambitious plans for the coming year and the trustees are keen to ensure the infrastructure and our strategy are fit for purpose and will ensure our ongoing ability to meet demand, survive a possible recession and ensure a quality and efficient service for our service users.
## **Management team**
Denise Irving is the Chief Officer and is supported by a small management team of Susan White and Louise Young, Advice Services Managers and Peter Wilson, the Finance Officer, who help manage the day to day operations of the organisation.
## **Administrative details**
**Company Number:** 6347304
## **Registered Charity Number:** 1121988
## **Company Secretary:** Denise Irving
**Registered Office:** 5a Waterloo Place, Sunderland, SR1 3HT
**Independent Examiner:** Ian Whitfield BA FCA (Bede House, 3 Belmont Business Park, Durham, DH1 1TW)
**Bankers:** HSBC (101 Front Street, Chester le Street, Co Durham, DH3 3BL)
- 6 -
## **CITIZENS ADVICE SUNDERLAND**
## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
The trustees' report was approved by the Board of Trustees.
## **Mr C Graham**
Trustee Dated: 24 November 2022
- 7 -
## **CITIZENS ADVICE SUNDERLAND**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF CITIZENS ADVICE SUNDERLAND**
I report to the trustees on my examination of the financial statements of Citizens Advice Sunderland (the bureau) for the year ended 31 March 2022.
## **Responsibilities and basis of report**
As the trustees of the bureau (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the bureau are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the bureau’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
Since the bureau’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- 1 accounting records were not kept in respect of the bureau as required by section 386 of the 2006 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
- 4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Ian Whitfield BA FCA
Azets Audit Services
Bede House Belmont Business Park DURHAM DH1 1TW United Kingdom
Dated: 23 March 2023
- 8 -
## **CITIZENS ADVICE SUNDERLAND**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 MARCH 2022**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2022**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**3**
631
-
Charitable activities
**4**
30,977
811,334
Investments
**5**
6,287
-
**Total income**
37,895
811,334
**Expenditure on:**
Charitable activities
**6**
92,522
703,627
Other
**11**
94
-
**Total resources**
**expended**
92,616
703,627
**Net (expenditure)/income for**
**the year/**
**Net movement in funds**
(54,721)
107,707
Fund balances at 1 April
2021
649,866
272,311
**Fund balances at 31**
**March 2022**
595,145
380,018|**Total**
Unrestricted
Restricted
funds
funds
**2022**
2021
2021
**£**
**£**
**£**
631
1,673
-
842,311
65,493
740,398
6,287
7,629
-
849,229
74,795
740,398
796,149
78,560
618,666
94
168
(59)
796,243
78,728
618,607
52,986
(3,933)
121,791
922,177
653,799
150,520
975,163
649,866
272,311|Total
2021
**£**
1,673
805,891
7,629|
|---|---|---|
|||815,193|
|||697,226|
|||109|
|||697,335|
|||117,858
804,319|
|||922,177|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
- 9 -
## **CITIZENS ADVICE SUNDERLAND**
## **BALANCE SHEET**
## _**AS AT 31 MARCH 2022**_
|**Notes**
**Fixed assets**
Tangible assets
**13**
**Current assets**
Debtors
**14**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**15**
Net current assets
**Total assets less current liabilities**
**Income funds**
Restricted funds
**16**
Unrestricted funds|**2022**
**£**
37,497
928,673
966,170
(30,321)|**£**
39,314
935,849
975,163
380,018
595,145
975,163|**2021**
**£**
44,860
885,858
930,718
(29,214)|**£**
20,673
901,504|
|---|---|---|---|---|
|||||922,177|
|||||272,311
649,866|
|||||922,177|
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2022.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on 13 March 2023
Mr C Graham Doctor D W Reed **Trustee Trustee**
**Company Registration No. 6347304**
- 10 -
## **CITIZENS ADVICE SUNDERLAND**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 MARCH 2022**_
|**Notes**
**Cash flows from operating activities**
Cash generated from operations
**20**
**Investing activities**
Purchase of tangible fixed assets
Investment income received
**Net cash used in investing activities**
**Net cash used in financing activities**
**Net increase in cash and cash equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2022**
**£**
(40,267)
6,287|**£**
76,795
(33,980)
-
42,815
885,858
928,673|**2021**
**£**
(7,640)
7,629|**£**
144,250
(11)
-
144,239
741,619
885,858|
|---|---|---|---|---|
- 11 -
## **CITIZENS ADVICE SUNDERLAND**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **1 Accounting policies**
## **Charity information**
Citizens Advice Sunderland is a private company limited by guarantee incorporated in England and Wales. The registered office is 5a Waterloo Place, Sunderland, Tyne and Wear, SR1 3HT, United Kingdom.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the bureau's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The bureau is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the bureau. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the bureau has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the bureau.
## **1.4 Incoming resources**
Income is recognised when the bureau is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the bureau has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
- 12 -
## **CITIZENS ADVICE SUNDERLAND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **1 Accounting policies**
**(Continued)**
## **1.5 Resources expended**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. Irrecoverable VAT is charged as an expenses against the activity for which expenditure arose.
Direct charitable expenditure includes the direct costs of the activities and depreciation on related assets. Where such costs relate to more than one functional cost category, they have been split on an appropriate basis.
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements Straight line over 5 years Computers 25% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
## **1.7 Impairment of fixed assets**
At each reporting end date, the bureau reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
## **1.8 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **1.9 Financial instruments**
The bureau has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the bureau's balance sheet when the bureau becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
- 13 -
## **CITIZENS ADVICE SUNDERLAND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **1 Accounting policies**
## **(Continued)**
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the bureau’s contractual obligations expire or are discharged or cancelled.
## **1.10 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the bureau is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.11 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
## **2 Critical accounting estimates and judgements**
In the application of the bureau’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **3 Donations and legacies**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2022**|2021|
||**£**|£|
|Donations and gifts|631|1,673|
- 14 -
## **CITIZENS ADVICE SUNDERLAND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **4 Charitable activities**
|**Provision of**
**advice**
**Provision of**
**advice**
**2022**
**2021**
**£**
**£**
Performance related grants
811,334
740,398
Other income
30,977
65,493
842,311
805,891
Analysis by fund
Unrestricted funds
30,977
65,493
Restricted funds
811,334
740,398
842,311
805,891
MASDAP
310,533
340,361
First Tier
43,000
96,666
Wise Steps
40,516
39,869
Help to Claim
197,543
196,052
Energy Redress Scheme
21,563
5,844
British Gas Energy Trust
147,945
61,606
Mln Cap
15,234
-
Cumbria Northumberland Tyne and Wear NHS Foundation Trust
35,000
-|**Provision of**
**advice**
**Provision of**
**advice**
**2022**
**2021**
**£**
**£**
Performance related grants
811,334
740,398
Other income
30,977
65,493
842,311
805,891
Analysis by fund
Unrestricted funds
30,977
65,493
Restricted funds
811,334
740,398
842,311
805,891
MASDAP
310,533
340,361
First Tier
43,000
96,666
Wise Steps
40,516
39,869
Help to Claim
197,543
196,052
Energy Redress Scheme
21,563
5,844
British Gas Energy Trust
147,945
61,606
Mln Cap
15,234
-
Cumbria Northumberland Tyne and Wear NHS Foundation Trust
35,000
-|**Provision of**
**advice**
**Provision of**
**advice**
**2022**
**2021**
**£**
**£**
Performance related grants
811,334
740,398
Other income
30,977
65,493
842,311
805,891
Analysis by fund
Unrestricted funds
30,977
65,493
Restricted funds
811,334
740,398
842,311
805,891
MASDAP
310,533
340,361
First Tier
43,000
96,666
Wise Steps
40,516
39,869
Help to Claim
197,543
196,052
Energy Redress Scheme
21,563
5,844
British Gas Energy Trust
147,945
61,606
Mln Cap
15,234
-
Cumbria Northumberland Tyne and Wear NHS Foundation Trust
35,000
-|
|---|---|---|
||**2022**
**£**
811,334
30,977
842,311
30,977
811,334
842,311
310,533
43,000
40,516
197,543
21,563
147,945
15,234
35,000|**2021**
**£**
740,398
65,493|
|||805,891|
|||65,493
740,398|
|||805,891|
|||340,361
96,666
39,869
196,052
5,844
61,606
-
-|
## **5 Investments**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2022**|2021|
||**£**|£|
|Interest receivable|6,287|7,629|
- 15 -
## **CITIZENS ADVICE SUNDERLAND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **6 Charitable activities**
|**Provision of**
**advice**
**Provision of**
**advice**
**2022**
**2021**
**£**
**£**
Staff costs
572,865
560,290
Depreciation and impairment
2,840
1,434
Staff and volunteer expenses
1,006
2,066
Repairs and renewals
237
719
Insurance
568
310
Postage, printing and stationery
1,092
828
Materials, subscriptions and licences
2,298
894
Telephone
1,982
1,124
Rent
4,885
2,069
Rates
325
179
Light and heat
933
193
Cleaning
2,509
788
Sundry expenses
46,685
18,853
Other charitable expenditure
2,218
1,234
640,443
590,981
Share of support costs (see note 8)
150,124
101,634
Share of governance costs (see note 8)
5,582
4,611
796,149
697,226
**Analysis by fund**
Unrestricted funds
92,522
78,560
Restricted funds
703,627
618,666
796,149
697,226
**For the year ended 31 March 2021**
Unrestricted funds
78,560
Restricted funds
618,666
697,226|**Provision of**
**advice**
**Provision of**
**advice**
**2022**
**2021**
**£**
**£**
Staff costs
572,865
560,290
Depreciation and impairment
2,840
1,434
Staff and volunteer expenses
1,006
2,066
Repairs and renewals
237
719
Insurance
568
310
Postage, printing and stationery
1,092
828
Materials, subscriptions and licences
2,298
894
Telephone
1,982
1,124
Rent
4,885
2,069
Rates
325
179
Light and heat
933
193
Cleaning
2,509
788
Sundry expenses
46,685
18,853
Other charitable expenditure
2,218
1,234
640,443
590,981
Share of support costs (see note 8)
150,124
101,634
Share of governance costs (see note 8)
5,582
4,611
796,149
697,226
**Analysis by fund**
Unrestricted funds
92,522
78,560
Restricted funds
703,627
618,666
796,149
697,226
**For the year ended 31 March 2021**
Unrestricted funds
78,560
Restricted funds
618,666
697,226|**Provision of**
**advice**
**Provision of**
**advice**
**2022**
**2021**
**£**
**£**
Staff costs
572,865
560,290
Depreciation and impairment
2,840
1,434
Staff and volunteer expenses
1,006
2,066
Repairs and renewals
237
719
Insurance
568
310
Postage, printing and stationery
1,092
828
Materials, subscriptions and licences
2,298
894
Telephone
1,982
1,124
Rent
4,885
2,069
Rates
325
179
Light and heat
933
193
Cleaning
2,509
788
Sundry expenses
46,685
18,853
Other charitable expenditure
2,218
1,234
640,443
590,981
Share of support costs (see note 8)
150,124
101,634
Share of governance costs (see note 8)
5,582
4,611
796,149
697,226
**Analysis by fund**
Unrestricted funds
92,522
78,560
Restricted funds
703,627
618,666
796,149
697,226
**For the year ended 31 March 2021**
Unrestricted funds
78,560
Restricted funds
618,666
697,226|
|---|---|---|
||**2022**
**£**
572,865
2,840
1,006
237
568
1,092
2,298
1,982
4,885
325
933
2,509
46,685
2,218
640,443
150,124
5,582
796,149
92,522
703,627
796,149
78,560
618,666
697,226|**2021**
**£**
560,290
1,434
2,066
719
310
828
894
1,124
2,069
179
193
788
18,853
1,234|
|||590,981
101,634
4,611|
|||697,226|
|||78,560
618,666|
|||697,226|
||||
## **7 Description of charitable activities**
## Provision of advice
The charitable activity is the provision of advice.
- 16 -
## **CITIZENS ADVICE SUNDERLAND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **8 Support costs**
|Staff costs
Depreciation
Independent examiners fee
Legal and professional
Staff and volunteer expenses
Repairs and renewals
Insurance
Printing, stationery and postage
Materials, subscriptions and licences
Telephone
Rent
Other support costs
Analysed between
Charitable activities|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
55,202
-
18,787
-
-
2,500
-
3,082
1,159
-
764
-
3,758
-
4,042
-
5,416
-
12,513
-
32,255
-
16,228
-
150,124
5,582
150,124
5,582|**2022**
**£**
55,202
18,787
2,500
3,082
1,159
764
3,758
4,042
5,416
12,513
32,255
16,228
155,706
155,706|2021
£
31,862
13,485
4,611
-
1,469
1,957
2,919
2,486
4,257
10,564
19,586
13,049|
|---|---|---|---|
||||106,245|
||||106,245|
## **9 Trustees**
None of the trustees (or any persons connected with them) received any remuneration during the year, and none of them were reimbursed travelling expenses (2021- one was reimbursed travelling expenses of £39).
## **10 Employees**
The average monthly number employees during the year was 26 :
|Management
Administrative
Caseworkers
Cleaner
Total|**2022**
**Number**
4
2
22
1
29|**2021**
**Number**
4
2
19
1|
|---|---|---|
|||26|
- 17 -
## **CITIZENS ADVICE SUNDERLAND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
|**10**
**Employees**
**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**(Continued)**
**2022**
**2021**
**£**
**£**
578,448
542,355
37,365
38,476
12,254
11,321
628,067
592,152|**(Continued)**
**2022**
**2021**
**£**
**£**
578,448
542,355
37,365
38,476
12,254
11,321
628,067
592,152|
|---|---|---|
|||592,152|
In addition a great amount of time, the value of which is impossible to reflect in these financial statements, is donated by volunteers.
There were no employees whose annual remuneration was £60,000 or more.
## **11 Other**
||**Unrestricted**|Unrestricted|Restricted|Total|
|---|---|---|---|---|
||**funds**|funds|funds||
|||||£|
||**2022**|2021|2021|2021|
|Financing costs|11|62|(59)|3|
|Other expenditure|83|106|-|106|
||94|168|(59)|109|
## **12 Taxation**
Citizens Advice Sunderland, as a registered charity, is potentially exempt from taxation of income and gains falling within S505 of the Income and Corporation Taxes Act 1988 and S256 of the Taxation of Chargeable Gains Act 1992. No tax charge has arisen in the year.
- 18 -
## **CITIZENS ADVICE SUNDERLAND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
|**13**
**Tangible fixed assets**
**Leasehold**
**improvements**
**Computers**
**£**
**£**
**Cost**
At 1 April 2021
43,203
114,416
Additions
38,684
1,583
At 31 March 2022
81,887
115,999
**Depreciation and impairment**
At 1 April 2021
34,562
102,383
Depreciation charged in the year
16,377
5,250
At 31 March 2022
50,939
107,633
**Carrying amount**
At 31 March 2022
30,948
8,366
At 31 March 2021
8,641
12,032
**14**
**Debtors**
**2022**
**Amounts falling due within one year:**
**£**
Trade debtors
3,582
Other debtors
198
Prepayments and accrued income
33,717
37,497
**15**
**Creditors: amounts falling due within one year**
**2022**
**£**
Trade creditors
4,102
Other creditors
9,373
Accruals and deferred income
16,846
30,321|**Total**
**£**
157,619
40,267|
|---|---|
||197,886|
||136,945
21,627|
||158,572|
||39,314|
||20,673|
||**2021**
**£**
19,899
-
24,961|
||44,860|
||**2021**
**£**
2,982
11,450
14,782|
||29,214|
- 19 -
## **CITIZENS ADVICE SUNDERLAND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **16 Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
|||**Movement in funds**|**Movement in funds**||**Movement in funds**|**Movement in funds**|||
|---|---|---|---|---|---|---|---|---|
||**Balance at**|**Incoming**|**Resources**|**Balance at**|**Incoming**|**Resources**||**Balance at**|
||**1 April 2020**|**resources**|**expended**|**1 April 2021**|**resources**|**expended**|**31**|**March 2022**|
||**£**|**£**|**£**|**£**|**£**|**£**||**£**|
|Business|||||||||
|Innnovation|||||||||
|and Skills|9,256|-|-|9,256|-|-||9,256|
|Money Advice|||||||||
|Service Debt|||||||||
|Advice|||||||||
|Project|52,063|340,361|(290,201)|102,223|310,533|(280,608)||132,148|
|Sunderland|||||||||
|City Council|89,201|96,667|(46,811)|139,057|43,000|(41,248)||140,809|
|Big Lottery|||||||||
|Fund and|||||||||
|European|||||||||
|Social Fund|-|39,869|(39,869)|-|40,516|(40,516)||-|
|Universal|||||||||
|Support -|||||||||
|Help to claim|-|196,052|(196,052)|-|197,543|(197,543)||-|
|Energy|||||||||
|Redress|||||||||
|Scheme|-|5,844|(5,844)|-|21,563|(18,917)||2,646|
|British Gas|||||||||
|Energy Trust|||||||||
|(BGET)|-|61,606|(39,831)|21,775|147,945|(109,561)||60,159|
|Mln Cap|-|-|-|-|15,234|(15,234)||-|
|Cumbria|||||||||
|Northumberla|||||||||
|nd Tyne and|||||||||
|Wear NHS|||||||||
|Foundation|||||||||
|Trust|-|-|-|-|35,000|-||35,000|
||150,520|740,399|(618,608)|272,311|811,334|(703,627)||380,018|
## **Unrestricted Funds**
The Trustees seek to maintain minimum Reserves levels equivalent to nine months running costs of the Bureau. The Reserves Policy is outlined in the Trustees' Report on page 1 to 6.
- 20 -
## **CITIZENS ADVICE SUNDERLAND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **16 Restricted funds**
## **(Continued)**
## **Restricted Funds**
## Money Advice Service Debt Advice Project (MASDAP)
This is an integrated debt advice service which is funded by the Money Advice Service and has funding until March 2023.
## Sunderland City Council (First Tier Welfare Rights Contract)
This is a welfare benefits and debt advice service funded by Sunderland City Council. The project has funding until March 2023.
## Energy Redress Scheme
This a project to provide energy advice to vulnerable people to meet the objectives of the Energy Redress Scheme (ERS). Funding is from Stockton & District Advice & Information Service (SDAIS). The project has funding until March 2023.
## British Gas Energy Trust (BGET)
This a project to provide energy advice and assistance to the public aimed at reducing and managing debt, maximising income, reducing fuel poverty, and improving energy efficiency. The project has funding until March 2023.
## CNTW NHS
Working alongside the three Sunderland NHS Foundation Trusts, the project provides dedicate advice and support to their patients particularly around welfare benefit support. The project has funding until March 2023.
## Wise Steps
This project provides one-to-one tailored support to help people take positive steps towards work with funding from the Big Lottery and the European Social Fund. The project has funding until January 2023.
## **17 Analysis of net assets between funds**
|**Analysis of net assets between funds**|||
|---|---|---|
|**Unrestricted**
**Restricted**
**2022**
**2022**
**£**
**£**
Fund balances at 31
March 2022 are
represented by:
Tangible assets
39,314
-
Current assets/(liabilities)
555,012
380,837
594,326
380,837|**Total**
Unrestricted
Restricted
**2022**
2021
2021
**£**
£
£
39,314
20,673
-
935,849
629,193
272,311
975,163
649,866
272,311|Total
2021
£
20,673
901,504|
|||922,177|
## **18 Related party transactions**
There were no disclosable related party transactions during the year (2021 - none).
## **19 Charitable Status**
Citizens Advice Sunderland is a Registered Charity (Number 1121988). The Charity is a Company Limited by Guarantee, having no share capital. The liability of each member in the event of winding up is £1.
- 21 -
## **CITIZENS ADVICE SUNDERLAND**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
|**20**
**Cash generated from operations**
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease in debtors
Increase in creditors
**Cash generated from operations**
21
**Analysis of changes in net funds**
The bureau had no debt during the year.|**2022**
**£**
52,986
(6,287)
21,626
7,363
1,107
76,795|**2021**
**£**
117,858
(7,629)
14,918
10,771
8,332
144,250|
|---|---|---|
||||
- 22 -