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2023-03-31-accounts

Company registration number: 07186736 Charity registration number: 1135081

Citizens Advice Leicestershire

(A company limited by guarantee) Annual Report and Financial Statements For the Year Ended 31 March 2023

The Rowleys Partnership Ltd Chartered Accountants, Statutory Auditors Charnwood House Harcourt Way Meridian Business Park Leicester LE19 1WP

Citizens Advice Leicestershire

Contents

Reference and Administrative Details 1 to 2 Trustees’ Report 3 to 11 Statement of Trustees’ Responsibilities 12 Independent Auditors’ Report 13 to 16 Statement of Financial Activities 17 to 18 Balance Sheet 19 Statement of Cash Flows 20 Notes to the Financial Statements 21 to 33

Citizens Advice Leicestershire

Reference and Administrative Details

Trustees M. T. Flaherty – Chair
M-A. Beere – Treasurer
G. Cook – Resigned 6 June 2022
P. J. G. Symonds
J. Walters
V. T. Goodman
N. L. B. Waghela
M. Kynaston – Pearson – Resigned 15 August 2022
Z. Feghali – Appointed 24 January 2023
D. Scruton – Appointed 24 January 2023
Company Secretary R. Evans – Resigned 9 June 2023
Central Management Team R. Evans – Resigned 9 June 2023
A. E. Steiner
H. Matthews
L. Hegarty
J. Thomas
Principal Office Clarence House
46 Humberstone Gate
Leicester
LE1 3PJ
Registered Office Clarence House
46 Humberstone Gate
Leicester
LE1 3PJ
The Charity is incorporated in England and Wales

Page 1

Citizens Advice Leicestershire

Reference and Administrative Details

Company Registration Number 07186736
Charity Registration Number 1135081
Solicitors Lawson West
4 Dominus Way
Meridian Business Park
Leicester
LE19 1RP
Bankers The Co-operative Bank plc
1 Balloon Street
Manchester
M60 4EP
Unity Trust Bank
4 Brindley Place
Birmingham
B1 2JB
CAF Bank Ltd
25 Kings Hill Avenue
Kings Hill
West Malling
Kent
ME19 4JQ
Auditor The Rowleys Partnership Ltd
Chartered Accountants, Statutory Auditor
Charnwood House
Harcourt Way
Meridian Business Park
Leicester
LE19 1WP

Page 2

Citizens Advice Leicestershire

Trustees Report

The Trustees, who are directors for the purposes of company law, present the annual report together with the financial statements and auditors' report of the charitable company for the year ended 31 March 2023.

Towards the end of the financial year our CEO, Richard Evans, unexpectedly passed away on 28th March 2023. This greatly impacted on the Board, staff, volunteers and the organisation. Business interruption plans were instigated, and Acting CEO cover put into place.

Objectives and activities

Objects and aims

The Charity's purposes, as set out in the objects contained in the Company's Memorandum of Association, are to promote any charitable purpose for the benefit of the whole community of Leicestershire ("the area of benefit") by the advancement of education, the protection of health and the relief of poverty, sickness and distress.

Our aims are focused on the provision of the advice people need for the problems they face and the improvement of the policies and practices that affect people's lives.

Our service provides free, independent, confidential and impartial advice to everyone on their rights and responsibilities. We value diversity, promote equality and challenge discrimination.

The main area of benefit refers to the community of Leicestershire and the organisation focuses the majority of activities on Leicestershire and the City of Leicester. However, work is now accepted from other parts of the Country for some services including national telephone calls and web chat.

The Charity has developed its own Mission Statement to reflect more accurately the purpose and role of the organisation:

“Citizens Advice Leicestershire (CITAL) will continue to be recognised as the leading provider of appropriate excellent advice across the county and city. We will develop and maintain a range of provisions that meet the new and emerging challenges facing people in our area, including the prevention of homelessness and the cost of living crisis".

Page 3

Citizens Advice Leicestershire

Trustees Report

Public benefit

Our main objectives for the year have been developing our service so it matches the needs of the clients we are trying to support whilst continuing with all bidding opportunities.

We will achieve our Aim by focusing on five major objectives:

  1. People – Ensuring clients remain central to our organisation and all our developments; ensuring well motivated and engaged staff and volunteers by having effective communication systems, excellent training and support.

  2. Financial sustainability – Ensuring the financial sustainability of CITAL. We will do this by rigorous financial management, effective monitoring of the changing environment, accessing core funding, exploiting new markets and developing social enterprises.

  3. Delivery and innovation – Ensuring all our people deliver consistently high standards of advicegiving. We will continue to innovate to best meet the new and emerging needs of our clients including the use of developing technologies as the leading provider in Leicestershire.

  4. Local profile – To be recognised as market leaders in the innovative work we do and develop a high profile for the organisation locally, regionally and nationally. To focus on social policy, being articulate, visible and vocal about the consequences of local and national government policy on local people.

  5. National profile - To play an effective but robust role within Citizens Advice nationally whilst reflecting the need of the local population with our own and the funders’ aspirations.

All our charitable activities focus on providing the advice people need for the problems they face and are undertaken specifically to provide public benefit. The Board of Trustees have had due regard to the Charity Commission guidance on public benefit and have complied with the duty in section 4 of the Charities Act 2011.

Use of Volunteers

The organisation receives help and support in the form of voluntary assistance in offering advice to the public. Throughout 2022/23, the organisation employed over 55 staff and utilised more than 45 volunteers working together delivering various projects (including the core service).

Volunteers represent an indispensable part of the organisation and without them there would not be a Citizens Advice service. Our volunteers contributed over 21,060 hours based on an average of 6 hours per week per volunteer. This equates to an estimated value of volunteering of approximately £383,924 based on hourly rates for advice work. However, their value is inadequately expressed in monetary terms. Indeed, volunteers bring many skills and equally; the experience gained with us helps individuals return to the labour market.

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Citizens Advice Leicestershire

Trustees Report

Achievements and performance

The main areas of charitable activity are: the provision of general advice and information services; the provision of specialist advice and casework services in the debt and welfare benefits categories of social welfare law and guidance on current pension regulations. Overall in 2022/23 there were some 68,946 hours of advice provided. Throughout the year we have continued to offer advice and information in the following ways:

Telephone - we continued to operate a City and County wide telephone triage service staffed by volunteer and paid assessors. The line is answered between the hours of 9.00am and 4.30pm from Monday to Friday.

Face to face drop in - these services, previously suspended due initially to ongoing Covid -19 lockdown restrictions, were reintroduced. The face to face offer changed from the pre-covid model and recognised the majority of the people we help moved to telephone/email as their preference. Therefore the face to face offer provision was provided for those most in need.

Full advice - we offer general and specialist advice through our team of trained volunteer advisers and paid staff. This was delivered by telephone, email and face to face for those that needed additional support. We also offered advice via a video.

Information and self-help - supporting service users to become more self-reliant by accessing online information. During the year there were more than 454,006 website hits.

Outreach – Outreach sites were suspended during covid and we have worked with the local authorities to assess the need for outreach work and identify the areas of greatest need. For Leicester City clients areas were identified and the first re-opened during the period at Wesley Hall Monday 9am to 5pm.

In addition to general advice, the following specialist services are provided: specialist debt advice funded by the Money Advice Service; specialist welfare benefits advice funded through Macmillan Cancer Support for clients and their families who are affected by cancer; the provision of specialist guidance across the County on Pension Regulations and Help to Claim, a service to help people claim Universal Credit funded by the DWP. There is also a Leicestershire County Council funded service called "Money Max".

Who Used and Benefited from our Services

During the reporting year we delivered more than 32,510 client contacts and appointments across all delivery channels as clients continue to present with multiple problems. We helped with more than a staggering 80,231 issues. This figure does not include over 454,006 hits on our website.

The majority of our work is helping people with benefit enquiries and money advice. In total we negotiated on just over £4,013,020 worth of debt; rescheduling or reducing the debts to make people's lives more sustainable. We also generated an estimated total of over £14,109,952 worth additional income for our clients.

Sustaining funding levels remains a continuing challenge; however, during the financial year our method of operation and management structure ensured that we delivered in the most effective and safest way possible. We continued to make good use of technology to deliver advice via remote platforms. This continued to protect the resources and ensure that the more resource intensive face to face services we kept for the most vulnerable. This year we answered more than 40,880 telephone calls and responded to over 18,076 emails and web chats. This was an increase from previous years.

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Citizens Advice Leicestershire

Trustees Report

Achievements and performance (continued)

It is fair to say the availability of funding in the Charity sector continues to remain difficult. The charity's focus is on providing added value to its funders from a base of sound financial management and ensuring that our services remain relevant to the strategic objectives of stakeholders at local and national level.

Financial review

Whilst we have worked hard to develop our service to enable us to deliver the most cost-effective service possible, the prospect of meeting the ever-increasing demand with significantly reduced funding resources is challenging.

In the reporting period the Charity generated an operating surplus of £22,564 from a total income of £1,687,244 and expenditure of £1,664,680. The surplus occurred in the main as a result of staff vacancies and rent reductions to reflect the reduced usage of premises for the period. The number of staff vacancies carried, whilst not critical to the organisation, has presented us with some operational and management difficulties.

Policy on reserves

The Trustees believe that the organisation should hold financial reserves in order to ensure that the CITAL can continue to operate and meet the needs of clients in the event of unforeseen and potentially financially damaging circumstances arising. The Trustees have a target of retaining the equivalent of three months' expenditure as financial reserves. CITAL's reserves are also held redundancy should the need arise to ensure that the organisation is able to cover contractual obligations for redundancy payments to staff and for unforeseen circumstances.

This reserves policy is monitored and reviewed by the Trustees. The Trustees are aware that they have reached their target for reserves but will continue to work towards maintaining that situation.

Principal funding sources

The total income for the year of £1,687,244 represents an increase of £38,835 from 2021/22. The Trustees extend their sincere gratitude to Leicester City Council, Leicestershire County Council, Blaby District Council, Harborough District Council, Hinckley and Bosworth Borough Council, North West Leicestershire District Council and Melton Borough Council who continue to support the (core) operating capacity of the Charity.

Significant project-specific funding was gratefully received from Macmillan Cancer Support, Money Advice Service's Financial Inclusion Fund through the East Midlands Money Advice Agency in support of money advice, and from Her Majesty's Treasury in respect of the Pension Wise Service and Help to Claim. There is also a Leicestershire County Council funded service called "Money Max" and EMSTN funded by the NHS.

Page 6

Citizens Advice Leicestershire

Trustees Report

Investment policy and objectives

In furtherance of its objectives, and for no other purposes, the company has the power to invest or deposit funds in any lawful manner. Last year a Charities Aid Foundation Bank investment account was opened and trialled. This has resulted in a modest income.

Plans for future periods

Aims and key objectives for future periods

The organisation will continue to seek to increase the number of people supported by, as far as possible, continuing to channel shift away from reliance on face to face appointments. This will enable those able to access advice and information themselves to do so, so as the more vulnerable clients can be assisted using more traditional methods such as face to face or telephone. Additional effort will be made to increase funding to support both additional clients and to support the technology and training needed to maintain the channel shift.

Going concern

After making further appropriate enquiries, the Trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

Structure, governance and management

Nature of governing document

Citizens Advice Leicestershire (CITAL) is a registered Charity and was incorporated as a company by limited guarantee on 11 March 2010 under the name “South and West Leicestershire Citizens Advice Bureau”. The name was changed on 1 January 2012 following the merger of the organisation with Citizens Advice Leicester, at which date the assets and liabilities of Citizens Advice Leicester were acquired. The name changed again, on 21 July 2016, following the rebranding of the organisation to Citizens Advice Leicestershire. Its objects and powers and other constitutional matters are set out in its Memorandum and Articles of Association.

A new Memorandum and Articles of Association was approved at an EGM in 2020 on the advice of Citizens Advice National. No major changes were included in the update except for clarifying that volunteers involved with service delivery could not also act as Trustees. The updated Articles of Association also clarified the AGM process.

Page 7

Citizens Advice Leicestershire

Trustees Report

Recruitment and appointment of Trustees

The Charity is governed through a Trustee Board. Trustees who have held office during the year are listed on page 1. The Articles of Association provide for a minimum of six and a maximum of twelve Trustees.

Trustees are elected to the Board and are appointed by a resolution of its members at an AGM. The Board has powers to co-opt members who shall retire at the following AGM and may offer themselves for reelection.

In 2020, the Trustee Board agreed to dissolve the F and GP and move to monthly Trustee meetings. These alternate between strategic and operational agendas with financial reporting a common theme.

However, when specific issues need to be discussed away from the main Trustee Board meeting, smaller and specific meetings have been called often involving wider representation from the paid staff group.

Induction and training of Trustees

New Trustees are briefed on their legal obligations under Charity and company law, the content of the Memorandum and Articles of Association, the committee and decision-making processes, the business plan and recent financial performance of the Charity. They also meet key employees and other Trustees. Trustees are encouraged to attend appropriate external training events where these will facilitate the understanding of their role.

Arrangements for setting key management personnel remuneration

During the summer 2019 a management review was undertaken and the County Operations Director role was removed and in its place a new role of Group Manager of County and Specialist Services. Similarly, the Compliance and Contracts Manager role was replaced and became Group Manager of Central Services. With these changes some functions were reassigned.

At the same time the local Service Managers roles became Local Business Leaders with the aim to take on more responsibility and to allow for succession planning.

The Finance Manager role was unaffected. These roles are now well bedded into the organisation. Their remuneration is set by the Trustees.

Organisational structure

CITAL is governed by its Trustee Board, which is responsible for setting the strategic direction of the organisation and the policy of the Charity. These policies are implemented by the Chief Executive. The Trustees carry the ultimate responsibility for the conduct of CITAL and for ensuring that the Charity stratifies its legal and contractual obligations. The Board has developed an induction procedure, in order to carefully select and induct new members onto its board. Trustees meet as a minimum each quarter and delegate the day-to-day operation of the organisation to senior management. The Trustee Board is independent from management.

CITAL operates from five branches at Narborough, Market Harborough, Coalville, Hinckley, and Leicester. It also operated at one outreach venue and has staff and volunteers working from home. The Melton Mowbray branch is closed permanently to the public due to a funding cut. However, reduced funding is still in place so residents of the Borough can access the services by telephone and email. The branch in Oadby and Wigston closed due to the loss of a local tender. However, some services still operate in the Borough.

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Citizens Advice Leicestershire

Trustees Report

Organisational structure (continued)

CITAL is a member of National Association of Citizens Advice, which provides a framework for standards of advice and casework management as well as monitoring progress against these standards. The organisation also co-operates and liaises with a number of other advisory services, local charities and social services departments on behalf of clients.

Major risks and management of those risks

Corporate risk

CITAL has completed a Corporate Risk Management exercise and maintains a risk register that is regularly reviewed. This process cannot entirely eliminate all risks but provides reasonable assurance that problems are identified on a timely basis and their impact mitigated and managed. Major risks to which the Charity are exposed have been reviewed and systems put in place to mitigate those risks. The board will continue to review the corporate risk register and ensure that action plans are in place to mitigate its key risks.

Loss of funding

The effects of this in the short term have been minimised by maintaining reserves, and a very active programme of seeking and securing funds from a variety of sources. The Charity continues to seek to further diversify its funding sources.

Internal risks

Internal risks are minimised by the implementation of financial procedures for authorisation of all transactions and projects and to ensure consistent quality of delivery for all operational aspects of the charitable company. These procedures were reviewed by an independent qualified accountant in the spring of 2013 and continue to be reviewed annually. The Board accepted all the recommendations for further improvements to the system made in the regular three to six monthly review of the risk register.

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Citizens Advice Leicestershire

Trustees Report

Financial instruments

Objectives and policies

The charity’s activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the charity’s policies approved by the board of Trustees, which provide written principles on the use of financial derivatives to manage these risks. The charity does not use derivative financial instruments for speculative purposes.

Credit risk

The charity’s principal financial assets are bank balances and cash, trade and other debtors.

The charity's credit risk is primarily attributable to its trade debtors. The amounts presented in the balance sheet are net of allowances for doubtful debts. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.

The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.

The charity has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.

Liquidity risk

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the charity maintains sufficient funds at the bank.

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Citizens Advice Leicestershire

Trustees Report

Disclosure of information to auditor

Each Trustee has taken steps that they ought to have taken as a Trustee in order to make themselves aware of any relevant audit information and to establish that the charity’s auditor is aware of that information. The Trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Reappointment of auditor

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of The Rowleys Partnership Ltd as auditors of the charity is to be proposed at the forthcoming Annual General Meeting.

The annual report was approved by the Trustees of the charity on 19 October 2023 and signed on its behalf by:

M.A Beere Treasurer

M.T. Flaherty Chair of Trustees

Page 11

Citizens Advice Leicestershire

Statement of Trustees’ Responsibilities

The Trustees (who are also the directors of Citizens Advice Leicestershire for the purposes of company law) are responsible for preparing the Trustees’ report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year. 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 charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

Approved by the Trustees of the charity on 19 October 2023 and signed on its behalf by:

M.A Beere Treasurer

M.T. Flaherty Chair of Trustees

Page 12

Citizens Advice Leicestershire

Independent Auditor’s Report to the Members of Citizens Advice Leicestershire

Opinion

We have audited the financial statements of Citizens Advice Leicestershire (the ‘charity’) for the year ended 31 March 2023, which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP – FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and applicable law (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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Citizens Advice Leicestershire

Independent Auditor’s Report to the Members of Citizens Advice Leicestershire

Other information (Continued)

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

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

Responsibilities of Trustees

As explained more fully in the statement of Trustees’ Responsibilities (set out on page 12), the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Page 14

Citizens Advice Leicestershire

Independent Auditor’s Report to the Members of Citizens Advice Leicestershire

Auditor’s responsibilities for the audit of the financial statements

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

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

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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Citizens Advice Leicestershire

Independent Auditor’s Report to the Members of Citizens Advice Leicestershire

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

Use of our report

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

Lisa G Parkes FCA FCCA (Senior Statutory Auditor) For and on behalf of The Rowleys Partnership Ltd

Statutory Auditors Chartered Accountants Charnwood House Harcourt Way Meridian Business Park Leicester LE19 1WP

Date: 7 November 2023

Page 16

Citizens Advice Leicestershire

Statement of Financial Activities for the Year Ended 31 March 2023 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments
from:
Donations and legacies
3
Charitable activities
4
Total income
Expenditure on:
Charitable activities
5
Other expenditure
6
Total Expenditure
Net income/(expenditure)
Transfers between funds
16
Net movement in funds
Reconciliation of funds
Total funds brought forward
16
Total funds carried forward		 Unrestricted
funds
£
3,903
435,577
439,480
(323,899)
(15,891)
(339,790)
99,690
(57,649)
42,041
609,288
651,329		 Restricted
funds
Total 2023
£
£
-
3,903
1,247,764
1,683,341
1,247,764
1,687,244
(1,324,890)
(1,648,789)
-
(15,891)
(1,324,890)
(1,664,680)
(77,126)
22,564
57,649
-
(19,477)
22,564
20,485
629,773
1,008
652,337

Page 17

Citizens Advice Leicestershire

Comparative Statement of Financial Activities for the Year Ended 31 March 2022 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
3
charitable activities
4
Total income
Expenditure on:
Charitable activities
5
Other expenditure
6
Total Expenditure
Net income/(expenditure)
Transfers between funds
16
Net movement in funds
Reconciliation of funds
Total funds brought forward
16
Total funds carried forward		 Unrestricted
funds
£
4,930
815,915
820,845
(687,846)
(11,394)
(699,240)
121,605
(5,536)
116,069
493,219
609,288		 Restricted
funds
£
-
827,564
827,564
(832,466)
-
(832,466)
(4,902)
5,536
634
19,851
20,485		 Total 2022
£
4,930
1,643,479
1,648,409
(1,520,312)
(11,394)
(1,531,706)
116,703
-
116,703
513,070
629,773

All of the charity’s activities derive from continuing operations during the two periods.

Page 18

Citizens Advice Leicestershire

(Registration number: 07186736)

Balance Sheet as at 31 March 2023

Note
Fixed assets
Tangible assets
12
Current assets
Debtors
13
Cash at bank and in hand
Creditors: Amounts falling due
within one year
14
Net current assets
Net assets
Funds of the charity:
Restricted funds
Unrestricted income funds
Unrestricted funds
Total funds
16		 2023
£
-
89,967
923,406
1,013,373
(361,036)
652,337
652,337
-
652,337
652,337		 2022
£
-
76,760
817,775
894,535
(264,762)
629,773
629,773
20,485
609,288
629,773

The financial statements on pages 17 to 33 were approved by the Trustees, and authorised for issue on 19 October 2023 and signed on their behalf by:

M.A Beere Treasurer

M.T. Flaherty Chair of Trustees

Page 19

Citizens Advice Leicestershire

Statement of Cash Flows for the Year Ended 31 March 2023

Note
Cash flows from operating activities
Net cash income
Adjustments to cash flows from non-cash
items
Depreciation
12
Working capital adjustments
(Increase)/decrease in debtors
13
(Decrease)/increase in creditors
14
Decrease in deferred income
14
Net cash flows from operating activities
Cash flows from investing activities
Purchase of tangible fixed asset
12
Net increase in cash and cash equivalents
18
Cash and cash equivalents at 1 April 2022
18
Cash and cash equivalents at 31 March 2023
18		 2023
£
22,564
-
22,564
(13,207)
82,219
14,055
105,631
-
105,631
817,775
923,406		 2022
£
116,703
-
116,703
(21,102)
(15,619)
72,894
152,876
-
152,876
664,899
817,775

All of the cash flows are derived from continuing operations during the above two periods.

Page 20

Citizens Advice Leicestershire

Notes to the Financial Statements for the Year Ended 31 March 2023

1 Charity status

The charity is a charitable company limited by guarantee and consequently does not have share capital. Each of the Trustees is liable to contribute an amount not exceeding £1 towards the assets of the charitable company in the event of liquidation.

The address of its registered office is: Clarence House 46 Humberstone Gate Leicester LE1 3PJ

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) – (Charities SORP (FRS102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.

Basis of preparation

Citizens Advice Leicestershire meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Going concern

The Trustees consider that there are no material uncertainties about the charitable company’s ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charitable company.

Judgements

Estimates and judgements 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.

The Charitable company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are that a selection of support costs are subject to an estimated allocation split between the funds.

Page 21

Citizens Advice Leicestershire

Notes to the Financial Statements for the Year Ended 31 March 2023

Income and endowments

All income is included in the statement of financial activities when the Charitable company is entitled to the funds and the amount can be measured with reasonable certainty. Income is deferred only when the Charitable company has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period.

Voluntary income is received by way of grants, donations and gifts, including gift: aid income where applicable, and is included in full in the statement of financial activities when receivable. Income from grants, where related to performance and specific deliverables, are accounted for when it is probable that the income will be received, and the amount can be measured reliably and is not deferred.

Deferred income

Deferred income represents amounts received for future periods and is released to incoming resources in the period for which it has been received. Such income is only deferred when:

Donated services and facilities

Donated services and facilities are included at the value to the Charitable company where this can be quantified and is material. The value of services provided by volunteers has not been included in these accounts.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable that settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

All resources expended are inclusive of irrecoverable VAT.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Page 22

Citizens Advice Leicestershire

Notes to the Financial Statements for the Year Ended 31 March 2023

Support costs

Support costs includes all those overhead costs of office and bureau accommodation, utility services, and other services and costs, which are in support of the activity. They also include those costs not associated with the other two headings and includes costs of meeting the constitutional and statutory requirements of the Charitable company, the audit fees and costs linked to the strategic management of the Charitable company. They have been allocated to activity cost categories on a basis consistent with the use of resources, e.g. staff costs by time spent and other costs by estimated usage.

Taxation

The Charitable company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets costing £2,000 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class

Furniture and equipment

Depreciation method and rate 33.3% straight line

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Page 23

Citizens Advice Leicestershire

Notes to the Financial Statements for the Year Ended 31 March 2023

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Fund structure

Unrestricted income funds are general funds that are available for use at the Trustee’s discretion in furtherance of the objectives of the charity.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Pensions and other post retirement obligations

The Charity operates a defined contribution group personal pension plan for its employees. Payments are charged to the statement of financial activities in the period in which they are incurred.

Financial instruments

Classification

Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.

Recognition and measurement

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through the statement of financial activities, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument

Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

Page 24

Citizens Advice Leicestershire

Notes to the Financial Statements for the Year Ended 31 March 2023

3 Income from donations and legacies

----- Start of picture text -----
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds 2023 funds funds 2022
£ £ £ £ £ £
Donations and legacies:
Donations 3,903 - 3,903 4,930 - 4,930
- -
3,903 3,903 4,930 4,930
4 Income from charitable activities
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds 2023 funds funds 2022
£ £ £ £ £ £
General advice 435,577 331,220 766,797 815,915 30,995 846,910
Debt advice - 141,652 141,652 - 180,641 180,641
Benefits advice - 682,014 682,014 - 534,038 534,038
Pensions guidance and financial
- 92,878 92,878 - 81,890 81,890
capability
435,577 1,247,764 1,683,341 815,915 827,564 1,643,479
5 Expenditure on charitable activities
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds 2023 funds funds 2022
£ £ £ £ £ £
General advice 303,843 372,111 675,954 672,201 27,025 699,226
Debt advice 20,056 159,731 179,787 15,645 190,147 205,792
Benefits advice - 698,555 698,555 - 533,404 533,404
Pensions guidance and financial
- 94,493 94,493 - 81,890 81,890
capability
323,899 1,324,890 1,648,789 687,846 832,466 1,520,312
Activity Activity Activity Activity
undertaken support Total undertaken support Total
directly costs 2023 directly costs 2022
£ (Note 7) £ £ £ £ £
General advice 557,491 118,463 675,954 575,635 123,591 699,226
Debt advice 153,985 25,802 179,787 178,884 26,908 205,792
Benefits advice 627,929 70,626 698,555 459,715 73,689 533,404
Pensions guidance and financial
82,658 11,835 94,493 69,539 12,351 81,890
capability
1,422,063 226,726 1,648,789 1,283,773 236,539 1,520,312
----- End of picture text -----

Page 25

Citizens Advice Leicestershire

Notes to the Financial Statements for the Year Ended 31 March 2023

6 Other expenditure

Unrestricted
funds
General		 Total
2023		 Total
2022
£ £ £
Staff costs
Other staff costs
Audit fees
Audit of the financial statements
7 Analysis of support costs
Support costs allocated to charitable activates
Basis of
allocation
£
General advice
Staff costs
5,721
Debt service
Staff costs
1,246
Benefits service
Staff costs
3,411
572
10,950
8 Net incoming/ outgoing resources
Net incoming resources for the year include:
Audit fees
Governance
costs
Pensions guidance and
financial capability
Staff costs		 £
3,978
867
2,372
397
7,614
Staff
costs		 £
72,129
15,710
43,002
7,206
138,047
Office
costs		 8,103
7,788
15,891
£
36,635
7,979
21,841
3,660
70,115
Premises
costs		 8,103
7,788
15,891
Total
2023
£
118,463
25,802
70,626
11,835
226,726
2023
£
7,788		 4,314
7,080
11,394
Total
2022
£
123,591
26,908
73,689
12,351
236,539
2022
£
7,080

Page 26

Citizens Advice Leicestershire

Notes to the Financial Statements for the Year Ended 31 March 2023

9 Trustees remuneration and expenses

No Trustees have made any transactions with the charity during the year.

No Trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

No Trustees have received any other benefits from the charity during the year.

10 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs		 2023
2022
£
£
1,252,015
1,145,755
97,955
86,423
79,033
61,850
1,429,003
1,294,028

The monthly average number of persons (including senior management team) employed by the charity during the year expressed as Full time equivalents was as follows:

Charitable purposes
Management and administration		 2023
2022
No
No
53
52
4
4
57
56

57 (2022 - 56) of the above employees participated in the defined contribution pension schemes.

Contributions to the employee pension schemes for the year totalled £79,033 (2022 - £61,850).

Page 27

Citizens Advice Leicestershire

Notes to the Financial Statements for the Year Ended 31 March 2023

10 Staff costs (continued)

The number of employees whose emoluments fell within the following bands was:

2023 2022
No No
£60,001 - £70,000 1 1

The total employee benefits of the key management personnel of the charity were £229,624 (2022 - £216,163). The Trustees consider key management to be the central management team as described on page 1.

11 Taxation

The charity is a registered charity and is therefore exempt from taxation.

12 Tangible fixed assets

Cost
At 1 April 2022
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022
13 Debtors
Trade debtors
Prepayments
Accrued income		 £
81,795
81,795
81,795
-
81,795
-
-
2023
£
54,759
34,048
1,160
89,967
Furniture
and
equipment		 Totals
£
81,795
81,795
81,795
-
81,795
-
-
2022
£
11,061
35,838
29,861
76,760

Page 28

Citizens Advice Leicestershire

Notes to the Financial Statements for the Year Ended 31 March 2023

14 Creditors: amounts falling due within one year

Trade Creditors
Other Creditors
Accruals
Deferred income
Deferred income reconciliation as below:
Deferred income at 1 April 2022
Movement in the year
Deferred income at 31 March 2023		 2023
£
22,459
102,656
64,542
171,379
361,036
2023
£
157,324
14,055
171,379		 2022
£
12,963
27,692
66,783
157,324
264,762
2022
£
84,430
72,894
157,324

15 Obligations under leases and hire purchase contracts

Total future minimum lease payments under non-cancellable operating leases are as follows:

Land and Buildings
Within one year
Between one and five years		 2023
£
-
-
-		 2022
£
9,370
-
9,370

Page 29

Citizens Advice Leicestershire

Notes to the Financial Statements for the Year Ended 31 March 2023

16 Funds
Unrestricted funds
General
General funds
Leicester City Council
Total net assets
Restricted funds
Leicester City Council
Universal Credit
EBDX
MESO
Seven Locks
Macmillan
Pension Wise
Money Advice Service
Martin Lewis
BESN
AMSS
Help to claim
Moneywise Plus
CSF
Market Harborough
General Advice Coalville
Leicestershire Communities Fund
Soft Phones
EMSTN
Hinckley Foodbank
Money Max Budgeting Expert
Total restricted funds
Total funds		 Balance at
1 April
2022
£
615,966
(6,678)
609,288
-
4,710
6,272
1,357
467
-
-
-
114
523
-
-
1,008
34
6,000
-
-
-
-
-
-
20,485
629,773		 Incoming
resources
£
439,480
-
439,480
321,413
-
-
28,625
-
164,285
92,878
141,652
-
-
166,272
287,496
-
-
-
4,767
4,685
311
24,408
10,928
44
1,247,764
1,687,244		 Resources
expended
£
(339,790)
-
(339,790)
(360,967)
-
-
(31,123)
-
(178,328)
(94,493)
(159,731)
-
-
(166,272)
(287,496)
-
-
-
(6,114)
(4,675)
(311)
(24,408)
(10,928)
(44)
(1,324,890)
(1,664,680)		 Transfers
Balance at
31 March
2023
£
£
(57,649)
658,007
-
(6,678)
(57,649)
651,329
39,554
-
(4,710)
-
(6,272)
-
1,141
-
(467)
-
14,043
-
1,615
-
18,079
-
(114)
-
(523)
-
-
-
-
-
-
1,008
(34)
-
(6,000)
-
1,347
-
(10)
-
-
-
-
-
-
-
-
-
57,649
1,008
-
652,337

Page 30

Citizens Advice Leicestershire

Notes to the Financial Statements for the Year Ended 31 March 2023

16 Funds (continued)

----- Start of picture text -----
Balance at
Balance at 1 Incoming Resources
Transfers 31 March
April 2021 resources expended
2022
£ £ £ £ £
Unrestricted funds
General
General funds 499,897 438,418 (316,813) (5,536) 615,966
Leicester City Council (6,678) 382,427 (382,427) - (6,678)
Total net assets 493,219 820,845 (699,240) (5,536) 609,288
Restricted funds
Universal Credit 4,710 - - - 4,710
EBDX 6,272 - - - 6,272
MESO 359 27,537 (26,539) - 1,357
Seven Locks 467 - - - 467
Macmillan - 159,267 (159,267) - -
Pension Wise - 81,890 (81,890) - -
Money Advice Service - 180,641 (190,147) 9,506 -
Martin Lewis 114 - - - 114
BESN 523 - - - 523
AMSS - 129,327 (129,327) - -
Help to claim - 207,083 (207,083) - -
Help to Claim Best Practice - 10,824 (10,824) - -
Moneywise Plus 1,008 - - - 1,008
CSF 398 - (364) - 34
Market Harborough 6,000 - - - 6,000
EAP - 6,448 (2,467) (3,981) -
Leicestershire Communities Fund - 14,499 (14,510) 11 -
Soft Phones - 10,048 (10,048) - -
Total restricted funds 19,851 827,564 (832,466) 5,536 20,485
Total funds 513,070 1,648,409 (1,531,706) - 629,773
----- End of picture text -----

Page 31

Citizens Advice Leicestershire

Notes to the Financial Statements for the Year Ended 31 March 2023

16 Funds (continued)

Transfers from the general to restricted funds are done so to meet overspends on restricted projects or to correct previous period transfers made in error.

The specific purposes for which the funds are to be applied are as follows:

Leicester City Council – to provide general and specialist advice to the residents of Leicester City.

Universal Credit - in line with the service level agreement for 2017/18, £2,094 was the final payment for meeting targets. The balance was unused funding which is not subject to clawback as per the service level agreement.

EBDX - the funder has authorised a transfer to unrestricted funding.

MESO – funding to provide specialist advice to sufferers of mesothelioma.

Seven Locks - this underspend applied to deficits accrued over the life of the service which encompassed two periods in line with the service level agreement "any underspend can be used with the agreement with Seven Locks". This went towards the previous period overspend.

Macmillan – part of countywide funding received from Macmillan Cancer to offer advice to those living with cancer, their careers and family.

Pension Wise – the Bureau was appointed as a delivery centre for the Government’s Pension Wise Guidance Service. The Bureau delivered the service across the County from 2016 as part of a consortium of Local Citizen Advice.

Money Advice Service – EMMA is the lead contractor in the East Midlands for the Government’s Money Advice Service (MAS) and provides funding for three full time equivalent specialist Money Advice caseworker roles.

Martin Lewis - the funder has authorised a transfer to unrestricted funding.

BESN – the funds has authorised a transfer to unrestricted funding.

Help to Claim Service – Part of a national service supporting people to make a Universal Credit claim and supporting them through that process until they receive their first full payment.

CSF – Funding for recruitment, training and support to enable volunteers to deliver advice remotely.

Market Harborough – the balance on the fund was spent on IT and office equipment incurred in 2019/20 and 2020/21, and subsequently released.

Leicestershire Communities Fund – Funding in response to Covid-19 for additional laptops to enable advice services to be delivered remotely.

General Advice Coalville – Contains funding for work done for residents in North West Leicestershire at risk of homelessness.

Page 32

Citizens Advice Leicestershire

Notes to the Financial Statements for the Year Ended 31 March 2023

16 Funds (continued)

AMSS - Holistic support for people with debt, budgeting and money management issues.

Soft Phones - Adviser softphone and equipment package to provide generalist advice support.

EMSTN - Providing free advice on a range of social welfare issues to anyone in the East Midlands area who is affected by Sickle Cell or Thalassaemia – including patients and their families.

Hinckley Foodbank - In collaboration with Hinckley Area Food Bank and Falcon Support Services providing advice and ongoing casework to people accessing the Hinckley Area Foodbank to tackle the issues that have led to their need for emergency food support.

Money Max Budgeting Expert - Providing practical money management skills to anyone under 19 years old who are residents of Leicestershire and do not have a Level 2 maths qualification.

17 Analysis of net assets between funds

Current assets
Current liabilities
Total net assets
18 Analysis of net funds
Cash at bank and in hand
Net funds		 £
218,057
(218,057)
-
At 1 April
2022
£
817,775
817,775
Restricted
funds		 £
795,316
(142,979)
652,337
Cash flow
£
105,631
105,631
Unrestricted
funds		 Total funds
£
1,013,373
(361,036)
652,337
At 31 March
2023
£
923,406
923,406

19 Related party transactions

During the year the charity made the following related party transactions:

Citizens Advice (UK)

CITAL is a member of Citizens Advice, the national Charity (Charity Number: 279057) which sets out a framework for standards of advice and case management and supports with an information system, training and other services.

Costs for accountancy support, administrative and other services were £Nil (2022 - £Nil). Costs for membership were £10,096 (2022 - £10,096).

At the balance sheet date the amount due from Citizens Advice (UK) was £Nil (2022 - £Nil).

Page 33