**Company Registration No. 08039416 (England and Wales)**
**Charity No: 1148498**
## **DEBT ADVICE FOUNDATION**
**REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
**DEBT ADVICE FOUNDATION CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
||**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 2025**
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 2025. 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 (Chair) 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 2025**
## **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 2025**
## **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**
Debt Advice Foundation is a national debt education and advice charity based in Darwen, Lancashire.
Debt Advice Foundation’s primary objects are:
The prevention or relief of poverty for the public benefit and, without prejudice to the generality of the foregoing, this may include:
- the provision of free, impartial and appropriate debt advice to people with unaffordable debt.
- to help people with debt problems to gain access to appropriate solutions that will help them.
- to promote education, for the public benefit, in financial capability and money management so as to reduce the likelihood of debt misuse.
- 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.
Debt Advice Foundation seeks to carry out its objects through its free telephone debt counselling service and through DebtAware, its pioneering money management education programme for schoolchildren.
## **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 Financial Conduct Authority (FCA) Financial Lives 2024 Survey, 18% of the UK adult population, equating to around 9.5m people, is currently over-indebted. According to the research, unemployed households, low-income households, renters and people from ethic minority communities are all significantly more likely to fall into the category of being over-indebted.
Over the same period, only 1.7m households contacted a debt advice agency for help with a debt problem, highlighting the challenge faced by the sector to plan for future increases in service demand.
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 2025**
## **Debt Advice & Solutions**
Debt Advice Foundation carries out its debt advice work through its free telephone debt counselling service and through free, downloadable budgeting and creditor negotiation tools that are available on its website (www.debtadvicefoundation.org).
The charity’s free telephone helpline 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 and Pensions 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 and is a registered supporter of the All-Party Parliamentary Group on Debt and Personal Finance.
Debt Advice Foundation’s free, impartial telephone advice service is available to anyone worried about debt.
## **Education**
Debt Advice Foundation’s financial education work is delivered by DebtAware (www.debtaware.org), the education arm of the charity.
DebtAware is a pioneering financial capability education programme, which seeks to embed the knowledge, understanding and behaviours that will enable children to manage their finances with confidence in the years to come.
The charity currently has over 8,000 children enrolled on the programme from over 100 schools in England.
Debt Advice Foundation is a registered supporter of the All-Party Parliamentary Group on Financial Education for Young People.
## **HOW OUR ACTIVITIES DELIVER PUBLIC BENEFIT**
## **Debt advice & solutions**
With inflation remaining well above the Bank of England’s 2% target, further squeezing household disposable incomes, the charity was tasked with delivering a service that was able to meet the needs of a broad range of service users including those that required debt advice and help with creditor enforcement as well as, increasingly, households with deficit budgets that are compromising on basic health and welfare needs.
The charity’s in-house welfare benefits entitlement checking service continued to prove invaluable the growing number of households with deficit budgets, whilst the charity’s digital advice platform facilitated expanded provision for the digitally confident whilst removing potential barriers to access for hearing-impaired serviceusers.
As a supporter of the campaign to abolish the Persons at Risk of Violence (PARV) order fee, the charity was pleased to learn that in November, new rules came into effect, which meant vulnerable people involved in debt proceedings no longer had to pay to have their personal details removed from the Insolvency Register.
During the accounting period, the charity managed 5,789 cases with over £16.7m of unsecured debt, an increase in caseload of 7% on the previous year. 52% of callers presented with a deficit budget, which means they didn’t have sufficient income to cover their essential household expenditure.
47% of callers were referred either by Money and Pensions Service or by other partner organisations such as local authorities, consumer advocate websites and charities. 50% of callers found out about the charity’s helpline via internet searches with the remaining 3% derived from other sources.
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**DEBT ADVICE FOUNDATION REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025**
The number one specified cause of financial difficulty in the period was loss of job (33%).
Over 8% 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 (single issue contacts), disputed liabilities (4%), funding requests (3%), current insolvency cases (3%) and legal issues (3%) represented the most common caller concerns. Additionally, 3% of cases were entered into Breathing Space and a further 6% of cases had a full welfare benefits entitlement session.
In terms of how people contacted the charity, 92% of service users called our telephone helpline with 8% originating online.
61% of callers to the helpline were identified as vulnerable and 48% had a disability.
With regard to caller demographics, 73% of clients were aged between 25 and 54, whilst 66% of clients were single and 57% of clients were female.
In terms of measuring service quality, 100% of callers to the charity’s helpline provided feedback that they were satisfied or very satisfied with the service whilst 100% stated they would recommend the charity to others.
## **Education**
The charity provided financial capability education lessons to over 8,000 children from 100 schools, across the North West of England in the period. This included 3 new schools that joined the programme in September.
The charity presented the inaugural Dennis Benson Education Award to Sacred Heart Primary School, Hindley Green. The award, which is named in honour of the charity’s long-serving Chair, is presented to the school that has demonstrated outstanding performance and commitment to the programme during the school year.
During the year, the charity worked with a number of partner organisations including Bolton Council, which continued to fund the delivery of the DebtAware programme to primary schools across the Bolton area.
In terms of measuring success, 94% of schoolchildren interviewed graded the enjoyment of the lessons as very good or excellent, whilst 100% of teachers agreed that the programme was important to their pupils and that they would recommend DebtAware to other schools.
## **Financial performance**
Income derived from charitable activities in the year was £411,894, with an annual expenditure of £499,620, resulting in trading deficit of £87,275.
Post year trading is in line with expectations.
## **FUTURE PERIODS**
## **Debt Advice & Solutions**
Our strong leadership team and sector leading advice system ensures that the charity’s telephone helpline is well placed to meet the changing nature of demand for debt advice services as the cost of living crisis continues to impact record numbers of households across the UK.
Following receipt of significant post-year donation funding, the coming months will also see an expansion of the charity’s debt advice helpline with the recruitment of additional qualified advisers as well as the development of charity’s digital tools, significantly bolstering capacity whilst offering service-users greater flexibility and reflecting broader shifts in how consumers seek support.
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**DEBT ADVICE FOUNDATION REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025**
The charity will continue to work collaboratively with MaPS funded agencies to share insights and best practice within the sector to maximise positive service-user outcomes. This includes collaborative development of promising Artificial Intelligence technology.
## **Education**
More than 100 schools and 8,000 schoolchildren are signed up to the Debt Aware financial education programme in the coming year.
With the cost of living crisis continuing to affect record numbers of households across the UK, the DebtAware programme will seek to help children understand how macro-economic factors directly impacts their family.
The charity is also looking to build on its successful partnership with Bolton Council, to expand delivery of the Debt Aware programme to more education authorities and reach more children.
The charity continues to be an active supporter of the All-Party Parliamentary Group on Financial Education for Young People.
## **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 £411,894 (2024 - £453,858). Of this £327,859 (2024 - £347,877) related to restricted activities.
The deficit of £87,726 (2024 – deficit £65,221) decreased reserves to (£78,119) (2024 - £9,606).
## **Funds in deficit**
Funds were in deficit at the balance sheet date. Following securing significant funding of £0.5M in Jan 2026, funds were no longer in deficit with the Charity considered a going concern. 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 2025**
## **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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP 2019 (FRS 102);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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**
P Sargent Trustee
18 May 2026
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**DEBT ADVICE FOUNDATION INDEPENDENT EXAMINER’S REPORT FOR THE YEAR ENDED 31 AUGUST 2025**
I report to the charity trustees on my examination of the accounts of the charitable company for the year ended 31 August 2025 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:
1. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. 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
4. 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.
Richard Howarth ACA FCCA For and on behalf of Peaks & Valleys Business Enhancement Ltd
1[st] Floor, Block C The Wharf Manchester Road Burnley BB11 1JG
18 May 2026
**Year**
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## **DEBT ADVICE FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2025**
|**Year ended 31 August 2025**
**Notes**
**Unrestricted**
**funds**
**Restricted**
**funds**
**Total**
**Funds**
**£**
**£**
**£**
**INCOME FROM:**
Investments
**2**
-
-
-
Donations and legacies
-
-
-
Charitable activities
**3**
84,035
327,859
411,894
________
________
_______
**Total income**
**EXPENDITURE ON:**
Charitable activities
**4**
171,760
327,859
499,619
________
________
_______
**Total expenditure**
171,760
-
499,619
________
________
_______
**Net income / (expenditure) for the year**
**6**
(87,725)
-
(87,725)
________
________
_______
**RECONCILIATION OF FUNDS**
Total funds brought forward
9,606
-
9,606
________
________
_______
**Total funds carried forward**
(78,119)
-
(78,119)
________
________
_______|**ended**
**31**
**August**
**2024**
**Total**
**Funds**
**£**
82
-
453,858
________
453,940
519,161
________
519,161
________
(65,221)
________
74,827
________
9,606
________|
|---|---|
The accompanying notes form part of these financial statements.
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## **DEBT ADVICE FOUNDATION BALANCE SHEET AS AT 31 AUGUST 2025**
|**Notes**
**Unrestricted**
**funds**
**2025**
**Restricted**
**funds**
**2025**
**£**
**£**
**FIXED ASSETS**
Intangible assets
**9**
827
-
Tangible assets
**10**
20,224
-
________
________
21,051
-
**CURRENT ASSETS**
Debtors
**11**
34,859
-
Cash at bank and in hand
6,149
-
________
________
41,008
-
**LIABILITIES**
Amounts falling due within one year
**12**
(140,178)
-
________
________
**NET CURRENT ASSETS**
(99,170)
-
________
________
**TOTAL**
**ASSETS**
**LESS**
**CURRENT**
**LIABILITIES**
(78,119)
-
________
________
-
**NET ASSETS**
(78,119)
________
________
**FUNDS OF THE CHARITY:**
**13**
Unrestricted funds:
General funds
Restricted funds
**TOTAL CHARITY FUNDS**|**Total**
**Funds**
**2025**
**£**
827
20,224
________
21,051
34,859
6149
________
41,008
(140,178)
________
(99,171)
________
(78,119)
________
(78,119)
________
(78,119)
-
________
(78,119)
________|**Total**
**Funds**
**2024**
**£**
3,473
27,181
________
30,654
59,928
2,236
________
62,164
(83,212)
________
(21,048)
________
9,606
________
9,606
________
9,606
-
________
9,606
________|
|---|---|---|
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**DEBT ADVICE FOUNDATION BALANCE SHEET (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025**
For the year ending 31 August 2025 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 2025 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 18 May 2026 and were signed on its behalf by:
P Sargent 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 2025**
|**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||**2025**
**£**
(87,724)
7,845
2,641
-
(77,238)
25,068
56,968
4,798
-
(885)
(885)
________
-
________
-
________
3,913
2,236
________
6,149
________|**2024**
**£**
(65,222)
7,802
2,645
(82)
(54,857)
(17,327)
17,625
(54,559)
82
(1,707)
(1,625)
________
-
________
-
________
(56,184)
58,420
________
2,236
________|
|---|---|---|---|
|||||
|||||
|||||
|||||
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 2025**
## **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 YEAR ENDED 31 AUGUST 2025**
## **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 25% 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
-
-
________
________
-
-
________
________|**Total**
**funds**
**2025**
**£**
-
_______
-
________|**Total**
**funds**
**2024**
**£**
82
________
82
________|
|---|---|---|
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**DEBT ADVICE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **3. INCOME FROM CHARITABLE ACTIVIES**
|**Unrestricted**
**funds**
**Restricted**
**funds**
**£**
**£**
**Grant Income**
Money Advice Services
-
277,811
National Lottery Community grant
-
50,048
Income from providing debt advice
84,035
-
________
________
84,035
327,859
________
________|**2025**
**Total**
**funds**
**£**
277,811
50,048
84,035
________
411,894
________|**2024**
**Total**
**funds**
**£**
291,609
56,268
105,981
________
453,858
________|
|---|---|---|
## **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)
22,115
327,859
Depreciation and amortisation
10,489
-
Other costs
135,556
-
Governance costs (see note 5)
3,600
-
________
________
171,760
327,859
________
________
**OVERNANCE AND SUPPORT COSTS**
**Unrestricted**
**funds**
**Restricted**
**funds**
**£**
**£**
Independent Examiner’s remuneration
Accountancy fees
1,800
1,800
-
-
________
________
3,600
-
________
________
**NCOME FOR THE YEAR**
his is stated after charging:
Amortisation of intangible assets
Depreciation of tangible assets
Independent Examiner’s remuneration|**2025**
**Total**
**funds**
**£**
349,974
10,489
135,556
3,600
________
499,619
________
**2025**
**Total**
**funds**
**£**
1,800
1,800
________
3,600
________
**2025**
**£**
2,645
7,844
1,800
________|**2024**
**Total**
**funds**
**£**
330,533
10,447
174,881
3,300
________
519,161
________
**2024**
**Total**
**Funds**
**£**
1,800
1,500
________
3,300
________
**2024**
**£**
2,645
7,802
1,800
________|
|---|---|---|
## **5. GOVERNANCE AND SUPPORT COSTS**
## **6. INCOME FOR THE YEAR**
This is stated after charging:
-15-
**DEBT ADVICE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **7. TRUSTEES’ REMUNERATION AND BENEFITS**
There were no trustees’ remuneration or benefits for the year ended 31 August 2025, nor for the year ended 31 August 2025.
## **Trustees’ expenses**
There were no trustees expenses paid during the year ended 31 August 2025 (2024 - £Nil).
## **8. STAFF COSTS**
|Wages and salaries
Social security costs
Pension costs
he average monthly number of employees during the year was as follows:|**2025**
**£**
320,408
24,911
4,655
________
349,974
________
**2025**
**No.**
10
________|**2024**
**£**
301,614
24,225
4,693
________
330,533
________
**2024**
**No.**
11
________|
|---|---|---|
The average monthly number of employees during the year was as follows:
No employee received remuneration amounting to more than £60,000 in the year.
## **9. INTANGIBLE ASSETS**
|**Cost**
At 1 September 2024
Additions
At 31 August 2025
**Amortisation**
At 1 September 2024
Charge for the year
At 31 August 2025
**Net book value**
At 31 August 2025
At 31 August 2024|**Goodwill**
**£**
52,451
-
________
52,451
________
52,451
________
52,451
________
-
________
-
________|**Website**
**£**
13,382
-
________
13,382
________
9,908
2,646
________
12,554
________
828
________
3,474
________|**Total**
**£**
65,833
-
________
65,833
________
62,359
2,646
________
65,005
________
828
________
3,474
________|
|---|---|---|---|
Goodwill is written off in equal annual installments over its estimated useful economic life.
-16-
**DEBT ADVICE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **10. TANGIBLE ASSETS**
|**Leasehold**
**improvements**
**Motor**
**Vehicles**
**Fixtures,**
**fittings and**
**equipment**
**£**
**£**
**£**
**Cost**
At 1 September 2024
7,038
36,495
6,171
Additions
-
-
-
________
________
At 31 August 2025
7,038
36,495
6,171
________
________
**Depreciation**
At 1 September 2024
7,038
12,250
6,171
Charge for the year
5,880
-
________
________
At 31 August 2025
7,038
18,130
6,171
________
________
**Net book value**
As 31 August 2025
-
18,365
-
________
________
________
At 31 August 2024
-
24,245
-
________
________
________
**11. DEBTORS**
**Unrestricted**
**funds**
**Restricted**
**funds**
**£**
**£**
Trade debtors
6,258
Other debtors
14,239
Prepayments and accrued income
14,362
_______
________
34,859
-
________
________|**Computer**
**equipment**
**£**
28,520
886
________
29,406
________
25,584
1,964
________
27,544
________
1,858
________
2,936
________
**2025**
**Total**
**funds**
**£**
6,258
14,239
14,362
_______
34,859
________|**Totals**
**£**
78,224
886
________
79,110
________
51,043
7,844
________
58,887
________
20,223
________
27,181
________
**2024**
**Total**
**funds**
**£**
9,841
11,801
38,286
_______
59,928
________|
|---|---|---|
-17-
**DEBT ADVICE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
|**Unrestricted**
**funds**
**Restricted**
**funds**
**£**
**£**
Trade creditors
44,704
-
Taxation and social security
61,489
-
Other creditors
33,985
-
Interfund creditors
-
-
________
________
140,178
-
________
________|**2025**
**Total**
**Funds**
**£**
44,704
61,489
33,985
-
________
140,178
________|**2024**
**Total**
**funds**
**£**
27,112
15,305
36,236
4,558
________
83,212
________|
|---|---|---|
Interfund loans are interest free and will be repaid as and when required.
## **13. MOVEMENT IN FUNDS**
||**Balance at**|**Income**|**Expenditure**|**Transfers**|**Balance at**|
|---|---|---|---|---|---|
||**01/09/2024**||||**31/08/2025**|
||**£**|**£**|**£**|**£**|**£**|
|**Unrestricted funds**||||||
|General fund|9,606|
84,035|(171,760)|-|(78,119)|
||________|______|________|________|________|
||9,606|84,035|(171,760)|-|(78,119)|
||________|______|________|________|________|
|**Restricted funds**||||||
|Money Advice Service|-|327,859|(327,859)|-|-|
|National Lottery|-|-|-|-|-|
|Community Grant||||||
||________|______|________|________|________|
||-|||-|-|
||________|______|________|________|________|
|**Total funds**|9,606|411,894|(499,619)|-|(78,119)|
||________|______|________|________|________|
## **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.
-18-
**DEBT ADVICE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **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 2025 was 4.
## **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 2025**
||**Year ended**|**31 August**|**2025**|
|---|---|---|---|
||**Unrestricted**|**Restricted**|
**Total**|
||**funds**|**funds**|
**Funds**|
||**£**|**£**|**£**|
|**INCOME FROM:**||||
|Investments|-|-||
|Charitable activities|84,035|327,859|411,894|
||________|________|________|
|**Total income**|84,035|327,859|411,894|
|**EXPENDITURE ON:**||||
|Charitable activities|171,760|327,859|499,619|
||________|________|_______|
|**Total expenditure**|171,760|327,859|499,620|
|**Net income/ (Expenditure) for the year**|(87,725)|-|(87,725)|
||________|________|________|
|**RECONCILIATION OF FUNDS**||||
|Total Funds brought forward|9,606|-|9,606|
||________|________|________|
|**Total funds carried forward**|(78,119)|-|(78,119)|
||________|________|________|
-19-
**DEBT ADVICE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **19. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
||**Unrestricted**|**Restricted**|**Total**|
|---|---|---|---|
||**funds**|**funds**|**funds**|
||**£**|**£**|**£**|
|Current assets|41,008|-|41,008|
|Current liabilities|(140,178)|-|(140,178)|
||________|________|________|
|Total net assets|(99,170)|-|(99,170)|
||________|________|________|
|**ANALYSIS OF FUNDS**||||
||**At**||**At**|
||**01/09/2024**|**Cash flow**|**31/8/2025**|
||**£**|**£**|**£**|
|Cash at bank and in hand|2,236|3,913|6,149|
||________|________|________|
## **20. ANALYSIS OF FUNDS**
-20-