Company Registration No. 08039416 (England and Wales)
Charity No: 1148498
A registered charity
DEBT ADVICE FOUNDATION
REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
DEBT ADVICE FOUNDATION CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
| Page | |
|---|---|
| Report of the Trustees | 1 |
| Independent Examiner’s Report | 8 |
| Statement of Financial Activities | 9 |
| Balance Sheet | 10 |
| Statement of Cash Flows | 12 |
| Notes to the Financial Statements | 13 |
DEBT ADVICE FOUNDATION REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022
The Trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2022. The Trustees confirm that the Annual Report and financial statements of the company comply with current statutory requirements, the requirements of the company’s governing document 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 published in October 2019.
REFERENCE AND ADMINISTRATIVE DETAILS Name of charity
Debt Advice Foundation
Registered company number
08039416 (England and Wales)
Registered charity number
1148498
Registered office & operational address
1 Anchor Court Commercial Road Darwen Blackburn BB3 0DB
Company Secretary & Chief Executive Officer
David Rodger
Trustees & Company Directors
Dennis Benson (Chairman) Karol Sanderson Jeffrey Moore Peter Sargent Susan Ireland
Independent Examiners
Peaks & Valleys Business Enhancement Ltd 1[st] Floor, Block C The Wharf Manchester Road Burnley BB11 1JG
Bankers
Royal Bank of Scotland St Ann Square Branch St Ann Street Manchester M60 2SS
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DEBT ADVICE FOUNDATION REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
Debt Advice Foundation is a charitable company limited by guarantee, number 08039416, governed by its Memorandum and Articles of Association dated 20 April 2012. It registered as a charity, number 1148498, with the Charities Commission, on the 9 August 2012.
Organisational structure including the appointment and training of trustees
Debt Advice Foundation is governed by its Trustee Board / Board of Directors which is responsible for setting the strategic direction of the organisation and the policy of the charity. The Trustees carry the ultimate responsibility for the conduct of Debt Advice Foundation and for ensuring that the charity satisfies its legal and contractual obligations. Trustees meet as a minimum twice a year and delegate the day to day operation of the organisation to David Rodger, the Chief Executive Officer. The Trustee Board is independent from management.
The directors of the company are also charity Trustees for the purposes of charity law and under the company’s Articles are known as members. Under the requirements of the Memorandum and Articles of Association there shall be at least 3 Trustees at any one time. All future Trustees shall be appointed by a majority vote of the existing Trustees. One third (or the number nearest one third) of the Trustees must retire each year at the conclusion of the AGM. A retiring Trustee may be reappointed. Decisions relating to the charity are determined by a majority of votes of the trustees present at the meeting.
A scheme of delegation sets out what authority has been delegated by the board to committees and executive members of the organisation. The scheme of delegation ensures an appropriate level of delegation from the board so that there is effective and timely input into decision-making. It also ensures that Trustees are able to fulfil their legal and constitutional duties, through levers which enable them to delegate, monitor and if necessary, withdraw the delegated authority.
The training and induction provided for new trustees will depend on their experience. Where necessary, an induction will provide training on charity, legal and financial matters.
Risk management
The Trustees recognise that any major risks to which the charity is exposed need to be reviewed and systems put in place to mitigate those risks, and a risk register has been established and is updated at least annually.
The Trustees have a duty to identify and review the risks to which the charity is exposed and to ensure that appropriate controls are in place to provide reasonable assurance against fraud and error. The Trustees have implemented processes which evaluate the risks associated with the key areas within the operation of the charity. These include regular review of key risks through Trustees meetings and the monitoring of the processes utilised to manage those risks.
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DEBT ADVICE FOUNDATION REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022
OBJECTIVES AND ACTIVITIES
Mission
At the heart of the charity’s philosophy is the prevention and resolution of problem debt.
Whilst our primary focus is on helping those that are in need of advice and support today, we strongly believe that engaging with the next generation of credit users to foster a more responsible attitude towards borrowing and saving is key to tackling the burgeoning levels of UK personal debt.
Aims, objectives, strategies and activities
The charity’s objects are:
The prevention or relief of poverty for the public benefit and, without prejudice to the generality of the foregoing, this may include:
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the provision of free, impartial and appropriate debt advice to people with unaffordable debt.
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to help people with debt problems to gain access to appropriate solutions that will help them.
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to promote education, for the public benefit, in financial capability and money management so as to reduce the likelihood of debt misuse.
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to undertake or fund research to understand why problem debt happens and its effect on individuals, families and the wider United Kingdom economy and to disseminate useful results.
Public benefit
The trustees confirm that they have complied with the requirements of section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
ACHIEVEMENT AND PERFORMANCE
The following represents a review of the accounting period and demonstrates how activities benefited the public. The activities undertaken relate to the charity's stated purposes and objectives.
Background
According to Money and Pensions Service, 18% of the UK adult population, equating to around 9.3million people, is currently in need of debt advice, with a further 22% deemed as ‘at risk’ of falling into problem debt. These arresting statistics are only likely to worsen over the coming months as the cost of living crisis, fuelled by soaring energy costs, continues to push record numbers of households into fuel poverty and energy debt arrears.
A significant and growing proportion of sector demand now relates to deficit budgets and the accumulation of priority debt arrears, rather than over-geared personal finance portfolios and unsustainable levels of consumer credit.
Debt Advice Foundation is a registered national debt advice and education charity (1148498).
The charity is authorised and regulated by the Financial Conduct Authority (692492).
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DEBT ADVICE FOUNDATION REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022
Debt Advice & Solutions
Debt Advice Foundation seeks to carry out its debt advice objects through its free telephone debt counselling service, which helps around 10,000 people every year, and through the free, downloadable budgeting and creditor negotiation tools that are available on its website.
The charity’s free telephone helpline (0800 043 40 50) is open Monday to Friday, 8am to 6pm.
Debt Advice Foundation holds the Advice Services Alliance Advice Quality Standard (AQS) and is listed by Money Advice Service as an accredited, free provider of debt advice on its website.
The charity is a member of AdviceUK, the UK’s largest support network for free, independent advice centres. It is also a registered supporter of the All-Party Parliamentary Group on Financial Education for Young People and the All-Party Parliamentary Group on Debt and Personal Finance.
The charity offers its free, impartial telephone advice service to anyone worried about debt. A detailed financial statement is taken from callers to the helpline in order to determine the most appropriate solution for their circumstances.
The charity’s subsequent recommendations are based on the following key principles, taken from Debt Advice Foundation’s Ethical Debt Advice Charter:
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The advice will fully solve the caller’s debt problem;
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The adviser will recommend the least drastic and most appropriate solution available;
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They will aim to achieve the above in the shortest time possible
Education
The charity’s financial education and information work is delivered under the DebtAware name (www.debtaware.org).
DebtAware is a money management programme aimed at primary and secondary school children aged 9-13 years old.
The charity currently has over 10,000 children enrolled on the programme from over 150 schools across England and Scotland.
HOW OUR ACTIVITIES DELIVER PUBLIC BENEFIT
Debt advice & solutions
Whilst the widely anticipated tidal wave of demand for debt advice services following the coronavirus pandemic has not yet materialised, the sector has seen a significant shift in the nature of service-user enquiries, with many more people than ever before requiring cost of living assistance and help with utility debt arrears.
During the accounting period, 3,689 cases, with over £13.9m of unmanageable unsecured debt, were administered by the charity.
27% of callers were referred either by Money Advice Service or by other partner organisations such as local authorities, consumer advocate websites and charities. 73% of callers found out about the charity’s helpline via internet searches.
Credit cards accounted for 35% of total unsecured debt reported by callers to the charity’s helpline with personal loans the next highest average value, accounting for 34% of total debt.
The number one specified cause of financial difficulty was loss of job (14%).
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DEBT ADVICE FOUNDATION REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022
12% of cases managed by the charity’s helpline advisers required a managed debt solution intervention (Administration Order, Debt Relief Order, Bankruptcy, Individual Voluntary Arrangement, Free Debt Management Plan). Of the non-solution enquiries, benefit related enquiries (10.2%), disputed liabilities (9.7%), current insolvency case enquiries (5.9%) and bailiff assistance (4.8%) represented the most common caller concerns.
The charity’s new in-house benefit entitlement checking service went live during the period. The service has become an essential part of the adviser toolkit, enabling advisers to maximise client incomes and help build financial resilience against a backdrop of record cost of living increases.
Education
The charity provides financial capability education lessons to over 10,000 children annually from 150 schools across England and Scotland.
A new module was introduced to the DebtAware programme called “The Environment and Money”, which examines the interaction between environmental and financial factors and how they often conflict with each other.
Debt Advice Foundation welcomed the opportunity to work with Chorley Local Authority to deliver the Debt Aware programme in a further 8 primary schools across the region, the first initiative of its type.
FUTURE PERIODS
Debt Advice & Solutions
Following our successful Money and Pensions Service commissioning bid, the charity’s telephone helpline is well placed to meet the inevitable increase in demand for debt advice services as the cost of living crisis continues to impact record numbers of households across the UK.
The coming months will also see the release of charity’s new digital advice webchat service, which we believe offers service-users greater flexibility and reflects broader shifts in how consumers seek support.
Debt Advice Foundation is scheduled to participate in a creditor referral hub pilot, operated by Money and Pensions Service, which we believe will help to identify and engage at-risk individuals at a much earlier stage of their debt advice journey.
The charity will also continue to contribute to the strategic direction of the sector as part of Money and Pension Service’s Debt Advice Operational Group.
Education
More than 100 schools and 10,000 schoolchildren are signed up to the Debt Aware financial education programme in the coming year.
With the cost of living crisis impacting record numbers of households across the UK, DebtAware will place particular emphasis on the impact of inflation on living standards and how it affects the students’ families in the lessons.
The charity is also looking to build on its successful partnership with Chorley Local Authority, to deliver the Debt Aware programme through more local authorities across the country.
The charity continues to be an active supporter of the All Party Parliamentary Group on Financial Education for Young People.
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DEBT ADVICE FOUNDATION REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022
FINANCIAL REVIEW
Reserves policy
The Trustees consider that the charity should hold sufficient reserves in order that it can, from time to time, make payments at short notice to beneficiaries.
Principal funding sources
The charity’s primary source of funding is from the provision of debt advice. Both the Debt Advice Foundation’s grant funding from Money and Pensions Service for the provision of debt advice services and National Lottery funding for its education activities remained relatively unchanged.
Investment policy and objectives
The Charity has no long term investments.
Financial position
During this year the Charity’s incoming resources were £460,959 (2021 - £501,555). Of this £253,016 (2021 - £260,762) related to restricted activities.
The deficit of £39,349 (2021 – surplus £11,608) decreased reserves to £79,139 (2021 - £118,488).
Funds in deficit
No funds were in deficit at the balance sheet date. Where restricted funds have been used to meet costs in relation to restricted funds awaiting drawdown, the amounts due back to unrestricted reserves have been shown as interfund creditors at the year end.
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DEBT ADVICE FOUNDATION REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022
STATEMENT OF TRUSTEES’ FINANCIAL RESPONSIBILITIES
The trustees (who are also directors of Debt Advice Foundation for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP 2019 (FRS 102);
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
On behalf of the Board of Trustees
D Benson Chairman __2023
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DEBT ADVICE FOUNDATION INDEPENDENT EXAMINER’S REPORT FOR THE YEAR ENDED 31 AUGUST 2022
I report to the charity trustees on my examination of the accounts of the charitable company for the year ended 31 August 2022 which are set out on pages 9 to 20.
Responsibilities and basis of report
As the charity trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the company 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 your company’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Since the charitable company’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 the Institute of Chartered Accountants in England and Wales, 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:
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accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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the accounts 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
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the accounts 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.
David Sharples ACA For and on behalf of Peaks & Valleys Business Enhancement Ltd 1[st] Floor, Block C The Wharf Manchester Road Burnley BB11 1JG
__2023
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DEBT ADVICE FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2022
| Year ended 31 August 2022 Notes Unrestricted funds Restricted funds Total Funds £ £ £ INCOME FROM: Investments 2 315 - 315 Donations and legacies - - - Charitable activities 3 207,628 253,016 460,644 _ _ _ Total income 207,943 253,016 460,959 EXPENDITURE ON: Charitable activities 4 247,292 253,016 500,308 _ _ _ Total expenditure (39,349) 253,016 500,308 _ _ _ Net income / (expenditure) for the year 6 (39,349) - (39,349) _ _ _ RECONCILIATION OF FUNDS Total funds brought forward 118,488 - 118,488 _ _ _ Total funds carried forward 79,139 - 79,139 _ _ _ |
Year ended 31 August 2021 Total Funds £ 64 - 501,491 _ 501,555 489,947 _ 489,947 _ 11,608 _ 106,880 _ 118,488 _ |
|
|---|---|---|
The accompanying notes form part of these financial statements.
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DEBT ADVICE FOUNDATION BALANCE SHEET AS AT 31 AUGUST 2022
| Notes Unrestricted funds 2022 Restricted funds 2022 £ £ FIXED ASSETS Intangible assets 9 8,753 - Tangible assets 10 39,567 - _ _ 48,320 - CURRENT ASSETS Debtors 11 56,291 - Cash at bank and in hand 71,112 - _ _ 127,403 - LIABILITIES Amounts falling due within one year 12 (96,584) - _ _ NET CURRENT ASSETS 30,819 - _ _ TOTAL ASSETS LESS CURRENT LIABILITIES 79,139 - _ _ NET ASSETS 79,139 - _ _ FUNDS OF THE CHARITY: 13 Unrestricted funds: General funds Restricted funds TOTAL CHARITY FUNDS |
Total Funds 2022 £ 8,753 39,567 _ 48,320 56,291 71,112 _ 127,403 (96,584) _ 30,819 _ 79,139 _ 79,139 _ 79,139 - _ 79,139 _ |
Total Funds 2021 £ 11,398 7,491 _ 18,889 90,403 96,563 _ 186,966 (87,367) _ 99,599 _ 118,488 _ 118,488 _ |
||
|---|---|---|---|---|
| 118,488 - _ 118,488 _ |
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DEBT ADVICE FOUNDATION BALANCE SHEET (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022
For the year ending 31 August 2022 the charitable company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the charitable company to obtain an audit of its financial statements for the year ended 31 August 2022 in accordance with Section 476 of the Companies Act 2006.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.
The trustees acknowledge their responsibilities for
(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The financial statements were approved by the Board of Trustees on ____2023 and were signed on its behalf by:
D Benson Trustee
Company Registration Number: 08039416
The accompanying notes form part of these financial statements.
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DEBT ADVICE FOUNDATION STATEMENT OF CASH FLOWS YEAR ENDED 31 AUGUST 2022
| Notes Cash flows from operating activities Net movement in funds Adjustment to cash flows from non-cash items Depreciation Amortisation Investment Income 2 Working capital adjustments Decrease/(increase) in debtors 11 (Decrease)/increase in creditors 12 Net cash flows from operating activities Cash flows from investing activities Interest receivable and similar income 2 Purchase of intangible fixed assets 9 Purchase of tangible fixed assets 10 Net cash flows from investing activities Cash flows from financing activities Repayment of borrowing Net cash flows from financing activities Net increase in cash and cash equivalents 20 Cash and cash equivalents at 1 September Cash and cash equivalents at 31 August |
2022 £ (39,349) 5,416 2,645 (315) (31,603) (1,251) 44,580 11,726 315 - (37,492) (37,177) _ - _ - _ (25,451) 96,563 _ 71,112 __ |
2021 £ 11,608 5,310 1,984 (64) _ 18,838 17,487 (19,443) _ 16,882 _ 64 (4,142) (2,189) _ (6,267) _ - _ - _ 10,615 85,948 _ 96,563 __ |
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|---|---|---|---|
All of the cash flows are derived from continuing operations during the above two periods.
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DEBT ADVICE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
1. ACCOUNTING POLICIES
Basis of preparation of financial statements
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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Companies Act 2006 and UK Generally Accepted Accounting Practice.
The financial statements are presented in sterling which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
Debt Advice Foundation meets the definition of a public entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
Preparation of the accounts on a going concern basis
The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.
Income
All income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received, and the amount can be measured reliably.
Bank interest is included in the income and expenditure account on receipt.
Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donors or which have been raised by the charity for particular purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Expenditure
Expenditure is recognised once there is a legal or constructive obligation to make payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably.
Charitable expenditure comprises those costs incurred 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.
Governance costs include those costs associated with meeting the constitutional and statutory requirements for the charity and include accountant’s fees and cost linked to the strategic management of the charity.
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DEBT ADVICE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2022
1. ACCOUNTING POLICIES (CONTINUED)
Taxation
The Charity is exempt from corporation tax on its charitable activities. Although the Charity is registered for VAT, it is not able to recover all input VAT incurred, and subsequent irrecoverable VAT is expensed to the Statement of Financial Activities.
Pensions
Employees of the charity are entitled to join a defined contribution money purchase scheme. The charity contribution is restricted to the contributions disclosed in note 8.
Tangible fixed assets and depreciation
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Leasehold improvements 20% straight line Fixtures, fittings and equipment 33% straight line Computer equipment 33% straight line Motor Vehicles 4 Year Straight Line
Goodwill
Goodwill represents the excess of the cost of acquisition of incorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life.
Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments and accrued income comprise payments made in advance relating to the following year and income relating to the current year, which will not be invoiced until after the balance sheet date.
Cash at bank and in hand
Cash at bank and cash in hand are basic financial assets and include cash in hand.
Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
2. INVESTMENT INCOME
| Unrestricted funds Restricted funds £ £ Bank interest received 315 - _ _ 315 - _ _ |
Total funds 2022 £ 315 _ 315 __ |
Total funds 2021 £ 64 _ 64 _ |
|---|---|---|
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DEBT ADVICE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2022
3. INCOME FROM CHARITABLE ACTIVIES
| Unrestricted funds Restricted funds £ £ Grant Income Money Advice Services - 223,974 National Lottery Community grant - 29,042 Income from providing debt advice 207,628 - _ _ 207,628 253,016 _ _ |
2022 Total funds £ 223,974 29,042 207,628 _ 460,644 _ |
2021 Total funds £ 231,517 29,245 240,729 _ 501,491 _ |
|---|---|---|
4. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES
All resources expended relate to the provision of the charity’s primary purpose of providing general debt advisory services.
| Unrestricted funds Restricted funds £ £ Staff costs (see note 8) Depreciation and amortisation Other costs Governance costs (see note 5) 123,907 8,062 72,674 3,300 159,478 - 93,538 - _ _ 207,943 253,016 _ _ GOVERNANCE AND SUPPORT COSTS Unrestricted funds Restricted funds £ £ Independent Examiner’s remuneration Accountancy fees 1,800 1,500 - - _ _ 3,300 - _ _ |
2022 Total funds £ 308,187 8,062 180,759 3,300 _ 500,308 _ 2022 Total funds £ 1,800 1,500 _ 3,300 _ |
2021 Total funds £ 288,660 7,295 190,692 3,300 _ 487,947 _ 2021 Total Funds £ 1,800 1,500 _ 3,300 _ |
|---|---|---|
5. GOVERNANCE AND SUPPORT COSTS
6. INCOME FOR THE YEAR
This is stated after charging:
| Amortisation of intangible assets Depreciation of tangible assets Independent Examiner’s remuneration |
2022 £ 2,645 5,417 1,800 __ |
2021 £ 1,984 5,311 1,800 __ |
|---|---|---|
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DEBT ADVICE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2022
7. TRUSTEES’ REMUNERATION AND BENEFITS
There were no trustees’ remuneration or benefits for the year ended 31 August 2022, nor for the year ended 31 August 2021.
Trustees’ expenses
There were no trustees expenses paid during the year ended 31 August 2022 (2021 - £Nil).
8. STAFF COSTS
| Wages and salaries Social security costs Pension costs The average monthly number of employees during the year was as follows: |
2022 £ 281,459 22,058 4,607 _ 308,187 _ 2022 No. 12 __ |
2021 £ 265,393 18,681 4,586 _ 288,661 _ 2021 No. 12 __ |
|---|---|---|
No employee received remuneration amounting to more than £60,000 in the year.
9. INTANGIBLE ASSETS
| Cost At 1 September 2021 Additions At 31 August 2022 Amortisation At 1 September 2021 Charge for the year At 31 August 2022 Net book value At 31 August 2022 At 31 August 2021 |
Goodwill £ 52,451 - _ 52,451 _ 52,451 - _ 52,451 _ - _ - _ |
Website £ 13,382 - _ 13,382 _ 1,984 2,645 _ 4,629 _ 8,753 _ 11,398 _ |
Total £ 65,833 - _ 65,833 _ 54,435 2,645 _ 57,080 _ 8,753 _ 11,398 _ |
|---|---|---|---|
Goodwill is written off in equal annual installments over its estimated useful economic life.
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DEBT ADVICE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2022
10. TANGIBLE ASSETS
| Leasehold improvements Motor Vehicles Fixtures, fittings and equipment £ £ £ Cost At 1 September 2021 7,038 - 6,171 Additions - 36,495 - _ _ At 31 August 2022 7,038 36,495 6,171 _ _ Depreciation At 1 September 2021 5,484 - 6,171 Charge for the year 1,378 490 - _ _ At 31 August 2022 6,862 490 6,171 _ _ Net book value As 31 August 2022 176 36,005 - _ _ _ At 31 August 2021 1,554 - - _ _ _ DEBTORS Unrestricted funds Restricted funds £ £ Trade debtors 37,907 - Other debtors 2,154 - Prepayments and accrued income 16,230 - Interfund debtors - - _ _ 56,291 - _ _ |
Computer equipment £ 22,792 997 _ 23,789 _ 16,855 3,548 _ 20,403 _ 3,386 _ 5,937 _ 2022 Total funds £ 37,907 2,154 16,230 - _ 56,291 __ |
Totals £ 36,001 37,492 _ 73,493 _ 28,510 5,416 _ 33,926 _ 39,567 _ 7,491 _ 2021 Total funds £ 19,502 1,850 33,688 35,363 _ 103,128 _ |
|---|---|---|
11. DEBTORS
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DEBT ADVICE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2022
12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| 2022 | 2021 | ||||
|---|---|---|---|---|---|
| Unrestricted | Restricted | Total | Total | ||
| funds | funds | funds | funds | ||
| £ | £ | £ | £ | ||
| Trade creditors | 12,441 | - | 12,441 | 10,963 |
|
| Taxation and social security | 15,110 | - | 15,110 | 1,956 |
|
| Other creditors | 69,033 | - | 69,033 | 39,085 |
|
| Interfund creditors | - | - | - | 35,363 |
|
| __ | __ | __ | __ |
||
| 96,584 | - | 96,584 | 87,367 |
||
| __ | __ | __ | __ | ||
| Interfund loans are interest | free and will be repaid as and when required. | ||||
| MOVEMENT IN FUNDS | |||||
| Balance at | Income Expenditure |
Transfers | Balance at | ||
| 01/09/2021 | 31/08/2022 | ||||
| £ | £ |
£ | £ | £ | |
| Unrestricted funds | |||||
| General fund | 118,488 | 207,943 | (247,292) | - | 79,139 |
| __ | __ |
__ | __ | __ | |
| 118,488 | 207,943 | (247,292) | - | 79,139 | |
| __ | __ |
__ | __ | __ | |
| Restricted funds | |||||
| Money Advice Service | - | 223,974 | (223,974) | - | - |
| National Lottery | - | 29,042 | (29,042) | - | - |
| Community Grant | |||||
| __ | __ |
__ | __ | __ | |
| - | 253,016 | (253,016) | - | - | |
| __ | __ |
__ | __ | __ | |
| Total funds | 118,488 | 460,959 | 500,308 | - | 79,139 |
| __ | __ |
__ | __ | __ |
13. MOVEMENT IN FUNDS
14. PURPOSE OF RESTRICTED FUNDS
Money Advice Service – funding to provide telephone debt advice services.
National Lottery Community grant – funding to support the charity’s financial education work in schools.
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DEBT ADVICE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2022
15. LEGAL STATUS OF CHARITY
The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1. The number of members as at the 31 August 2022 was 5.
16. CONTROL
The charity is controlled by its Trustees / Directors.
17. RELATED PARTY TRANSACTIONS
There are no related party transactions that require disclosure in the accounts.
18. STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2021 (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT)
| Year ended 31 August | Year ended 31 August | 2021 | |
|---|---|---|---|
| Unrestricted | Restricted | Total |
|
| funds | funds | Funds |
|
| £ | £ | £ | |
| INCOME FROM: | |||
| Investments | 64 | - | 64 |
| Charitable activities | 240,729 | 260,762 | 501,491 |
| __ | __ | __ | |
| Total income | 240,793 | 260,762 | 501,555 |
| EXPENDITURE ON: | |||
| Charitable activities | 229,185 | 260,762 | 489,947 |
| __ | __ | __ | |
| Total expenditure | 229,185 | 260,762 | 489,947 |
| Net income/ (Expenditure) for the year | 11,608 | - | 11,608 |
| __ | __ | __ | |
| RECONCILIATION OF FUNDS | |||
| Total Funds brought forward | 106,880 | - | 106,880 |
| __ | __ | __ | |
| Total funds carried forward | 118,488 | - | 118,488 |
| __ | __ | __ |
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DEBT ADVICE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2022
19. ANALYSIS OF NET ASSETS BETWEEN FUNDS
| Unrestricted | Restricted | Total | |
|---|---|---|---|
| funds | funds | funds | |
| £ | £ | £ | |
| Intangible fixed assets | 8,753 | - | 8,753 |
| Tangible fixed assets | 39,567 | - | 39,567 |
| Current assets | 127,403 | - | 127,403 |
| Current liabilities | (96,584) | - | (96,584) |
| __ | __ | __ | |
| Total net assets | 79,139 | - | 79,139 |
| __ | __ | __ | |
| 20. ANALYSIS OF FUNDS | |||
| At | At | ||
| 01/09/2021 | Cash flow | 31/8/2022 | |
| £ | £ | £ | |
| Cash at bank and in hand | 96,563 | (25,451) | 71,112 |
| __ | __ | __ |
21. COMMITMENTS UNDER OPERATING LEASES
At 31 August 2022 the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases as set out below:
Operating leases which expire: Within 1 year Within 2 - 5 years |
Land and Buildings 2022 2021 £ £ - 21,999 - - _ _ - 21,999 _ _ |
|---|---|
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