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2020-12-31-accounts

Trustees’ report and accounts

12 months to 31 December 2020

“Crosslight provides the human touch. In my culture we have a saying: ‘I see you.’ It means to see someone not just visually, but truly see them, value them, and respect them. That’s how it felt with Crosslight – that they truly saw me.”

CONTENTS CONTENTS
1. Welcome 03
2. Mission & Purpose 05
3. Activities, Achievements & Performance 06
Covid-19 – a year of challenge 12
4. Structure 13
5. Governance & Management 13
6. Funding & Support 14
7. Financial Review, Risk Management & Reserves Policy 15
8. Future Plans 16
9. Independent Examiner’s report to the trustees 17
10. Annual Accounts
a. Statement of Financial Activity 18
b. Balance Sheet 19
c. Notes to the Accounts 20

CHARITY INFORMATION

Charity number 1163306

FCA registration number 715066

Registered office and principal address HTB Brompton Road, London, SW7 1JA

Trustees

Martin Duffy Francis Ellison (Chair) Mark Farrar (Treasurer) Thomas Jackson MBE Nick Lines Barry Lock Seonaid Mackenzie

Bankers

Cooperative Bank plc, PO Box 101, Balloon Street, Manchester, M60 4EP

Independent examiner

Colin Webster, ACA

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1. WELCOME

From the Chair of Trustees

I am delighted to present our Annual Report and Financial Statements for the year ended 31 December 2020.

2020 was a year of contrasts. Although evictions were stayed, and much debt collection went into abeyance, the wider financial impact of the pandemic took a huge toll. Many of our clients, already struggling, were pushed further into difficulty. And sadly we know all too well that the real effects of the crisis are only just beginning.

So against this backdrop, I am delighted at what Crosslight was able to achieve – to wholeheartedly support existing clients, but also to lay the foundations to support the huge influx of new clients we expect in the months to come.

I am humbled at how staff and volunteers have worked tirelessly under the most difficult personal and office circumstances. And our funders and partners have been unbelievably generous, recognising the new need, the new reality.

This is reflected in healthy finances and new branches, staff and volunteers….but we must do more. Crosslight is growing, and grow it must – 2021 will bring new clients, new demands, and new challenges.

From the Chief Executive

In what it’s fair to say has been a ‘challenging’ twelve months, the following pages help illustrate why the support we provide is so vital, as well as give you a flavour of the transformative impact our work can have on those who are struggling.

In spite of all the challenges we have faced, our team have gone above and beyond to support those most in need, demonstrating the love, compassion and hope that is part of Crosslight’s DNA. And the response from clients has been overwhelming too. It is always a privilege to earn the trust of those we support, and throughout this lockdown that trust has been more important than ever. Time and again we have been able to stand alongside our clients when others couldn’t. And time and again our staff and volunteers have truly lived up to our motto of ‘Restoring Dignity, Renewing Hope’.

But none of this would have been possible without the ongoing commitment of our partners, churches and donors. To everyone who has supported and upheld us in so many ways, and particularly to our tireless staff and volunteers, thank you - we cannot do it without you.

Bruce Connell, Chief Executive

Francis Ellison, Chair of Trustees

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“Dear Crosslight community

I have different issues with my health also I had strongly problems with depression and anxiety and part of my problem was to control my bills, benefits, credit card and Crosslight help me to manage and reduce the electricity bill, water bill, credit card, filling form of my benefits, housing and help me to reduce my stress, also help to my son for his education.

They were like my family, gave me peace and solved my financials problem and still I miss them and I never forgot they help. I would like to say thank you to all of them. Thank you to all my friends in Crosslight. I really appreciate they help and support.

Kind regards, A”

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2. MISSION & PURPOSE

Crosslight Advice is an independent, personcentred charity working to alleviate poverty amongst some of the most vulnerable in our communities through end-to-end holistic debt advice and money education.

Rooted in our belief that everyone - no matter their background or circumstance - deserves dignity, independence, and renewed hope, Crosslight Advice works with the support of local partners and churches. We foster a community-driven approach, serving a growing number of communities in London and the south of England.

Our whole-person approach focuses on individuals and families who are often characterised by unemployment or low incomes, long-term physical or mental health problems, and complex social and family issues.

Our ethos is to work with our clients on an individual basis, to ensure they are able to embrace the advice given and understand the benefits of simple money management and budgeting techniques. But just as importantly, we aim to support them as they start working through some of the causes of their difficulties. It is a partnership, and we seek always to equip and empower, rather than prescribe or dictate. Most of our clients come to us at a point of crisis, often facing the threat of eviction, court orders, visits from bailiffs, and mounting priority debts. Simply being given the time to be heard can have a huge impact. With engagement, opportunities abound for positive life changes, building resilience and ultimately, encouraging financial independence.

Crosslight was founded on Christian principles and a strong Christian ethos underpins our values. We work with anyone who is struggling with problem debt regardless of their background, gender, ethnicity, sexuality, religion, or age.

Crosslight’s purposes as set out in the objects of its constitution are:

“The prevention or relief of poverty for the public benefit, in particular but not exclusively by providing money management and debt counselling advice to those in financial hardship.”

We refer to the Charity Commission’s general guidance on public benefit when reviewing the objectives and aims of Crosslight and in planning future activities.

3 in 5

of our clients have incomes below the poverty line

9 in 10

report mental health symptoms

One third

have long-term health problems

Half

our clients are struggling to pay their rent and are facing possible eviction

2 in 5

are struggling with utility arrears

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3. ACTIVITIES, ACHIEVEMENTS

& PERFORMANCE

2020 was unquestionably the most challenging year in Crosslight’s history. It was also one in which the importance of what we do, and the incredible dedication of our amazing team shone brighter than ever.

This unique year has been difficult for everyone. Our staff and volunteers have often faced difficult personal circumstances themselves. And for our clients, the difficulties thrown up by the pandemic have often been devastating, with many families already on the edge being pushed further into difficulty.

Against this backdrop, we were nevertheless able to support more people than ever before, hold more appointments than ever before, and make a bigger positive impact on the lives of our clients than ever before. We were able to support over 1,200 individuals (up 20% on 2019) with comprehensive debt advice, budget coaching and open-ended mentoring. And our team held an extraordinary 3,347 appointments with clients, (up 35%), at a time when many organisations had to shut their doors.

Over 1,200 people supported, representing over 2,200 family members

We increased our clients’ income by over £900,000 per annum

We secured over £2m of unpayable debt write-offs

4,500 individual debts resolved, including rent arears, utility debts, and bailiffs

Advise

We provide comprehensive debt and benefit advice, focusing on the unique circumstances of each individual. The end-to-end support we provide includes in-depth casework for the most vulnerable. We act as advocates for our clients to ensure their voices are heard, intermediating on their behalf whenever necessary. Our approach is to journey with our clients and support them each step of the way, working at their pace and adapting to their individual needs and abilities. Our open-ended support is available for as long as is needed.

Equip

A key part of our mission is to create lasting change so that our clients can face the future with more confidence and become better equipped to meet their full potential. We do this through one-to-one budget coaching and our 'Money Course' workshops – both face-to-face and online. We help clients look beyond the immediate crisis and work with them to build resilience over the long-term. Both these programmes help clients understand their own finances and teach them simple financial skills so they can manage their money more effectively.

Encourage

We know that debt and financial difficulty is often a symptom of a deeper problem. We work hard to support clients through their difficulties and empower them to turn their lives around. We achieve this by taking a genuinely holistic approach which includes mentoring, befriending, social-engagement and encouragement. Two-thirds of clients receive this additional 'holistic' support, f or example helping with job applications, applications for residency / citizenship, and support with family life. This support is initiated directly by advisers for their clients on a case-bycase basis.

6

Some milestones in 2020:

“I just wanted to thank you for your incredible help over these past months. I’m so thankful for all your advice regarding my debts, and felt you had my back all the way. I was lucky to be referred to someone so professional and make a stressful time for me much easier..” Client

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The challenges faced by our clients

The vast majority of our clients have complex needs which require dozens of hours of patient case work, and increasingly, court action or tribunal appeals.

2018 2019 2020
Average debt per client £15,420 £17,645 £18,629
% of clients who have long-term health issues 32% 43% 50%
% of clients struggling with social issues 13% 15% 27%
% of clients with multiple (4+) debts 71% 81% 81%
% of clients with priority debts 77% 80% 80%
% of clients with rent arrears and facing eviction 44% 48% 50%
% of clients with utility arrears 42% 47% 51%

New Branches

With the support of the Love Your Neighbour initiative, we were delighted to open two new branches towards the end of the year – in Swindon, and in Balham in London. In partnership with two local churches, we were able to recruit two incredible Branch Managers along with small teams of local volunteers, all of whom started intensive training to gain MaPS adviser accreditation. Both branches expect to start seeing clients in early 2021. We aim to open more branches in 2021 and beyond and are in discussions with local organisations to achieve this.

“Dear Crosslight

I would like to thank you and the Crosslight Team for helping me through my financial problems. You have helped me through a very difficult time in my life and for that I am very grateful. I have now got all my finances on track. Electric bills are now in credit, rent arrears are almost paid off. I can now take over from here to keep my finances on track all thanks to Crosslight Charity. I have and will continue to sing your praises and recommend your services to all my friends and colleagues. Your understanding, patiences and assistance will never be forgotten.” Client

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Financial Capability

Financial Capability is one of our three central aims, and one of our main goals is to look beyond crisis debt advice – as crucial as that is - and equip clients with the tools they need to manage their money more effectively and build resilience.

We made further important strides towards this goal during 2020 with the recruitment of a new Financial Capability lead to further develop this important area. As with debt advice, we were able to restructure our popular Money Course programme, completely re-filming it and adapting it for live online workshops. These were launched in the summer and were run every two weeks through the year, with great success.

Towards the end of the year we also launched a new Budget Coaching programme providing one-to-one money coaching sessions to anyone completing the Money Course programme. Clients work closely with a personal Budget Coach over several months to apply simple techniques and strategies to their own situations in order to help those individuals flourish.

Finally, we laid the groundwork for a new online learning platform which will enable even more individuals to access Money Course resources, book themselves into live workshops, and most excitingly, undertake the Money Course as part of a self-led study programme, supported by our Budget Coaching team.

Our Team

We continue to invest in our core staff team as well as build capacity through new volunteer advisers.

We were delighted to recruit two new Case managers to work alongside our clients. In addition, we realised a long-held objective to appoint someone to lead our Financial Capability offering, which continues to be a key pillar of what we do (see above). Due to the anticipated rise in demand caused by the pandemic, we also recruited a new colleague to triage clients and

support them as they make new enquiries and book appointments with our advisers. And we welcomed two Branch Managers for our new branches in Swindon and Balham (employed by our partners). We also welcomed a new fulltime fundraiser to the team to build out our fundraising strategy.

One particular focus during lockdown was learning and development. With everyone working remotely, we invested time in building support networks within and across our teams to ensure no one felt isolated or on their own. We introduced new daily online team ‘checkins’, fortnightly online staff meetings, and numerous online social events. As well as this, we built upon our existing internal training curriculum and moved it online, running 11 training

9

workshops throughout the year on topics from safeguarding and welfare, to bailiffs and case management.

In terms of volunteers, we were delighted to welcome 52 new volunteers during 2020 - in particular in our two new branches - 22 of whom became MaPS accredited during the year. In addition, nine volunteers achieved the higher-level Adviser accreditation. All this was achieved in spite of the difficult circumstances and the fact that all of our advisers were working remotely. As at December 2020, we had 186 volunteers supporting our work, in roles from hosting, Budget Coaching, Debt Advisers and Money Course leaders.

Social Impact

It is crucial for us to know if we are truly meeting the needs of those we seek to support. Our holistic approach means that we often get to know our clients very well and have the privilege of supporting them through many personal situations which may be a cause of, or caused by, their financial situation. We ask all our clients two sets of simple questions, six months apart, which have been designed to evaluate the practical and emotional impact of our work on the client’s lived experience. We use the responses to analyse the impact of our interventions on the lives of those we support.

----- Start of picture text -----
83% of money 63% of clients
course attendees reported
felt more improved mental
confident about wellbeing
their money
73% of clients
feel their financial
82% of clients
outlook had
said their main
improved
debt issue had
been resolved
----- End of picture text -----

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"Dear Crosslight

Thank you and to your colleagues for your advice and help. The work you do is invaluable and help you provide to people who are struggling is life changing. It is great that you provide support to individuals who suffer from metal illnesses such as depression and post-traumatic stress.

For people who have challenges like mine it makes a difference to receive advice from people who are specially trained, who provide circumstances-informed support, guidance in building towards a positive future. Thank you for your help.

Kind regards

Z.A."

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Covid-19 – a year of challenge

Needless to say, the Covid pandemic has had a significant impact on our work and how it’s delivered.

Since March 2020, all our appointments have taken place via telephone. This enabled us to continue our work uninterrupted and has been a lifesaver for many clients (directly in two cases - our advisers prevented two suicide attempts). Phone appointments have worked better than anyone dared hope, and clients have responded to them extremely positively.

However they are not a substitute for face-to-face meetings. Less can be achieved in a single telephone session and so we have had to hold more appointments than previously (over double). They are also less relational, and it takes longer to build trust. For example much of the impact of our work is not just the fact that we are able resolve specific debt issues, but that we are able to go beyond this and help clients address the casus of their debts and mentor them as they get back on their feet. This is harder to achieve over the phone.

Another challenge of not being able to meet clients face-to-face is that those with communication issues or who cannot read or write have struggled to express themselves and/or relay the contents of correspondence easily. We worked hard to put support mechanisms in place, utilising video-calling, easy document scanning, and drop-offs for paperwork. We have now been able to restart a limited number of face-to-face appointments across almost all of our branches, which has been warmly welcomed by many clients.

Additionally, many creditors and third parties themselves struggled to respond, causing further difficulty in unravelling and resolving complex situations.

Finally, we saw dramatic fluctuations in demand through the year with demand falling in the early stages of lockdown. There were several reasons for this including the fact that referral agencies and other charities who would normally refer service users to us either curtailed or stopped their activities. At the same time, almost all debt collection and legal action stopped.

This temporary slowdown in new enquiries enabled us to proactively concentrate on existing clients, especially cases which were taking longer than usual. We were able to resolve double the number of cases during this period than the same period last year. This, alongside other measures to increase our capacity, was a deliberate strategy to prepare for what we fully expect to be a significant increase in demand in 2021.

Against this backdrop, we are extremely proud of how the team has responded. We have held more appointments and resolved more cases than ever before, which is a testament to the incredible hard work and dedication of staff and volunteers alike. Nevertheless, it has been a challenging period, which looks set to continue into 2021 and beyond.

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4. STRUCTURE

Our model is one of collaboration and partnership, recognising that we can only achieve lasting change with the support and participation of the communities we serve. This approach is particularly evident in the partnerships that support our branches. Each branch is run with the support of a local partner so they can reflect and respond to the needs of each community. Our partners, which are either churches or local special-purpose charities with their own boards of trustees, raise funds to resource our branches, including employing some of our branch staff. They also provide true local representation and accountability, so that our branches are rooted in the communities they serve.

Our current branch partners are:

5. GOVERNANCE & MANAGEMENT

Crosslight is a registered Charitable Incorporated Organisation which is governed by a constitution dated 17[th] July 2015.

Crosslight is governed by a Board of Trustees who are appointed by the existing trustees. All new trustees receive an induction to their role and the work of Crosslight. All trustees give their time voluntarily and receive no benefits from the charity.

The trustees have also established three board committees / working groups to coordinate and oversee specific aspects of Crosslight’s activities: People, Compliance, and Fundraising. A trustee sits on each body which also comprises outside members with particular knowledge and experience in these fields.

The day-to-day management of Crosslight is delegated to the Chief Executive, supported by a team of staff and volunteers.

Pay & Remuneration

Pay and remuneration for all staff including key management personnel is determined by the People Committee based on individual performance and appropriate benchmarking. The committee has an independent chair and includes a mix of trustees and outside members with specialist skills.

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6. FUNDING & SUPPORT

In 2020 Crosslight secured funding of over £386,000 to support our work with the most vulnerable. We are very grateful to the many individuals, companies, partners, churches and trusts that have given so generously. Crosslight relies on this voluntary income and it is only through the generosity of our supporters that our transformational work can continue.

In particular we would like to thank the following for their financial support, either directly through Crosslight, or in support of our partners:

----- Start of picture text -----
Amalur
Foundation
----- End of picture text -----

Love You Neighbour

We were thrilled to be able to join forces with the nationwide crosscommunity Love Your Neighbour initiative powered by churches up and down the country in response to the pandemic.

What started as an emergency food bank in London as a response to the Covid-19 crisis, quickly evolved into a network of thousands of churches and other local organisations delivering over 7.5 million crisis meals, debt advice, employment support and other provision to help people most in need.

We were privileged to be one of the delivery partners for debt advice, and our two newest branches in Swindon and Balham were formed as a direct result of the Love Your

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Neighbour project. Anchored by a generous grant from central government, Love Your Neighbour provided grant funding to our local church partners to enable these two new branches to open, as well as providing a central grant to support our work more widely. We look forward to working closely with this incredible movement of churches in the year ahead.

Provision of support

In addition to the financial support already recognised above, the trustees would like to sincerely thank the partner churches in which the Crosslight branches are based:

7. FINANCIAL REVIEW, RISK MANAGEMENT, & RESERVES POLICY

Total incoming resources for the period amounted to £440,487, an increase of just under 52% on 2019. Resources expended on charitable activities were £296,379, up 33% on the previous year.

The trustees continue to review and assess the key operational, governance, compliance and financial risks faced by Crosslight. Risks to the charity are monitored by a Risk and Compliance Committee and appropriate action taken where necessary.

The principal risk is a cash flow deficit should insufficient funds be raised. To this end, the trustees consider that free reserves should be equivalent to a minimum of six months of normal expenditure. In making this determination, the trustees are also mindful of spending commitments over the ensuing six months.

The trustees believe that this provides sufficient flexibility to cover temporary shortfalls in incoming resources and will allow the charity to continue its work and respond to unforeseen events whilst specific action plans are implemented. The level of reserves is monitored monthly.

At 31[st] December 2020, normal expenditure was £32,350 a month and the reserves target was £194,100. The actual net free reserves at year end was £204,856 .

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8. FUTURE PLANS

Our service delivery goals for the next 12 months include:

Making our service even more accessible

Building capacity

Broadening the support available

Launching a new Money Course website as well as self-study options

Developing Crosslight’s new Budget Coaching programme

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9. INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES

FOR THE PERIOD ENDED 31 DECEMBER 2020

I report on the accounts for the period ended 31.12.20 which are set out in the following pages.

Respective responsibilities of trustees and independent examiner

The charity's trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed. It is my responsibility to:

Basis of independent examiner’s report

My examination was carried out in accordance with general directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.

Independent examiner’s statement

I am qualified to undertake this examination by being a qualified member of the ICAEW.

In connection with my examination, no matter has come to my attention which gives me reasonable cause to believe that in any material respect:

I have no concerns and have come across no matters to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

______ Colin Webster, ACA

Date: 16[th] May 2021

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10. ANNUAL ACCOUNTS

10a. Statement of Financial Activities for the

12 months ended 31 December 2020

Income from
Note
Grants, Donations and gifts
3
Advice service agreements
3
Total income
Expenditure on
Charitable activities
4
Fund-raising
5
Total expenditure
Net income / (expenditure)
Total funds at 1stJanuary 2020
6
Total funds at 31st December 2020
6		 2020
Unrestricted
£
194,316
38,475		 2020
Restricted
£
207,696
-		 2020
Total
£
402,012
38,475		 2019
Total
£
255,038
35,000
232,791 207,696 440,487 290,038
116,223
17,956		 180,156
-		 296,379
17,956		 222,346
17,718
134,179 180,156 314,335 240,064
98,612
106,244		 27,540
24,025		 126,152
130,269		 49,974
80,295
204,856 51,565 256,421 130,269

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10b. Balance Sheet as at 31 December 2020

Fixed Assets
Note
Tangible assets
Current Assets
Debtors
7
Cash at bank and in hand
Total current assets
Less:liabilities due within 1 year
8
Net current assets
Total net assets
9
Funds
Unrestricted funds
Restricted funds
10
Total funds		 £
-
2,344
306,088
308,432		 2020
£
256,421		 £
-
1,931
155,005
156,936		 2019
£
130,269
(52,011) (26,667)
256,421 130,269
204,856
51,565		 106,244
24,025
256,421 130,269

The financial statements were approved by the Board of Trustees 20[th] May 2021 and signed on their behalf by:

Francis Ellison Trustee (Chair)

Mark Farrar Treasurer

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10c. Notes to the Accounts

1. Accounting policies

A summary of principal accounting policies, all of which have been applied consistently throughout the year and the preceding year, is set out below:

a. Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102)

‘Accounting and Reporting by Charities: Statement of Recommended Practice’ and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

b. Critical accounting estimates and judgements

It is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. The following judgements and estimates are considered by the trustees to have most significant effect on amounts recognised in the financial statements: (i) the carrying amounts of assets and liabilities, which are based on the best and most reliable evidence available at the time when the decisions are made and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, the actual results and outcomes may differ. These estimates are reassessed annually and amended where necessary to reflect current circumstances. (ii) the allocation of costs between activities, which is based

on estimates of the resources used by each activity.

c. Funds

Unrestricted funds represent the funds of the charity that are not subject to any restrictions regarding their use and are available for general charitable activities at the discretion of the trustees

Restricted funds represent those received for specific purposes as specified by the donors.

d. Income recognition

Charitable income is recognised on a cash received basis other than where an accruals basis provides a more accurate basis or will give a fairer representation of the underlying nature of the transaction. Income is recognised so far as there is entitlement to the income, there is certainty of its receipt and the amount is quantifiable.

e. Expenditure Recognition

Resources expended are included in the Statement of Financial Activities on an accruals basis, inclusive of VAT which cannot be recovered.

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category.

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Expenditure on charitable activities

includes all costs incurred by the charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.

f. Provisions

Provisions are recognised when there is a present obligation (legal or constructive) as a result of a past event, it is probable that the obligation will be required to be settled, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting taking into account the risks and uncertainties surrounding the obligation. Provisions are discounted when the time value of money is material.

g. Financial instruments

Financial assets and liabilities are recognised when the charity becomes party to the contractual provisions of the financial instrument. The charity holds basic financial instruments which may comprise cash at bank, trade and other receivables and trade and other payables.

h. Financial assets and liabilities – classified as basic financial instruments

Cash at bank and in hand includes cash in hand, deposits held with banks, and other short-term highly liquid investments with original maturities of three months or less.

(ii) Other receivables

Other receivables are initially recognised at the transaction price, including any transaction costs. Amounts that are receivable within one year are measured at the undiscounted amount of the cash expected to be received.

(iii) Other payables

Other payables are initially measured at the transaction price, including any transaction costs, and subsequently measured at amortised cost using the effective interest method. Amounts that are payable within one year are measured at the undiscounted amount of the cash expected to be paid.

i. Going concern

After making enquiries, the trustees believe that Crosslight has adequate resources to continue in operational existence for the foreseeable future. For this reason, the trustees have continued to adopt the going concern basis in preparing the financial statements.

j. Cashflow statement

The charity has taken advantage of the exemption under FRS 102 from producing a cash flow statement on the grounds that it is a small entity.

k. Depreciation

Fixed assets are stated at cost less accumulated depreciation. Depreciation is provided at 33% per annum to write off the cost, less estimated residual value, of each asset over its expected useful life. Only assets costing more than £1,000 are capitalised.

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2. Comparative Statement of Financial Activities for 2019

The following table analyses 2019’s income and expenditure between unrestricted and restricted funds.

Income from
Grants, Donations and gifts
Advice service agreements
Total income
Expenditure on
Charitable activities
Fund-raising
Total expenditure
Net income / (expenditure)
Total funds at 1stJanuary 2018
Total funds at 31st December 2018		 2019
Unrestricted
£
151,538
35,000		 2019
Restricted
£
103,500
-		 2019
Total
£
255,038
35,000
186,538 103,500 290,038
142,871
17,718		 79,475
-		 222,346
17,718
160,589 79,475 240,064
25,949
80,295		 24,025
-		 49,974
80,295
106,244 24,025 130,269

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3. Grants and donations
Grants, donations and gifts breakdown
Trusts and foundations
City Bridge Trust
City Bridge Trust Community Response
Henry Smith Charity
Social Venture Partners London
National Lottery Awards for All
The Fore
Garfield Weston
Tudor Trust
Amalur Foundation
London Legal Support Trust
Charities Aid Foundation
Local Authority (RBKC)
Other
Corporate (philanthropic)
Markel Insurance
TSB
Therium
M&G Investments
Other
Partner charities contribution
Individuals
Other
Advice service agreements
Corporate
Local Authority (LBHF)		 Unrestricted
£
8,450
-
-
2,500
-
22,011
15,000
10,000

-

-
6,252
4,000
750
-
3,333
-
1,500
91,700
20,422
8,398		 Restricted
£
33,800
42,315
60,000
-
-
-
-
-
25,730
9,486
24,365
8,000
-
-
-
4,000
-
-		 2020
£		 2019
£
24,600
25,000
9,000
5,850
8,333
2,000
271,909 74,783
5,750
3,196
48,050
12,500
5,583
95,700
20,422
8,398		 69,496
90,900
8,955
3,161
194,316 207,696 402,012 255,038
3,475
35,000		 -
-		 -
35,000
38,475 - 38,475 35,000

During 2020, Crosslight was awarded a number of multi-year grants and received funding from other multi-year grants awarded in previous years. These were:

Funder Total amount Amount applied No. of years Receipt year
awarded in year
Henry Smith Charity £180,000 £60,000 3 1st
City Bridge Trust £68,600 £33,800 2 1st
Tudor Trust £60,000 £10,000 3 1st

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4. Expenditure on charitable activities1
Staff costs
Legal, professional and regulatory
Infrastructure, IT and office costs
Training and development
Other		 2020
2019
£
£
259,342
199,853
3,194
3,014
13,448
13,393
12,463
6,086
7,932
-		 2020
2019
£
£
259,342
199,853
3,194
3,014
13,448
13,393
12,463
6,086
7,932
-
296,379 222,346

1 Expenditure on charitable activities does not include four partner charities who supported our work during the year by employing staff and/or contributing to the local running costs of some of our branches. The total amount expended by these partners on the activities of Crosslight in 2020 was £158,967.

Staff costs
Wages and salaries
National insurance
Pension
Other staff costs		 2020
£
229,092
16,379
12,104
1,767		 2019
£
177,436
13,508
8,274
635
259,342 199,853

The number of Crosslight-employed staff [2] at year end was 13 (9.7 FTE) , employed as follows:

As at As at
31.12.20 31.12.19
Full time staff 5 4
Part time staff 8 (4.7 FTE) 4

No employees earned more than £60,000 during the year

2 These figures do not include staff employed by our partners and seconded to Crosslight. Including staff employed by our partners at 31[st] December 2020, there were 21 (15.2 FTE) staff in total (6 full time and 15 part time), compared to 15 (11 FTE) staff in total (5 full time and 10 part time) as at 31.12.19.

5. Fund-raising expenditure
Staff costs1
Other costs		 2020
£
17,714
242		 2019
£
17,322
396
17,956 17,718

1 Staff costs relate to the salary and remuneration of an employed fundraiser.

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6. Movement in funds
Restricted funds
Unrestricted funds
Total funds		 At 1st Jan
2020
£
24,025
106,244		 Incoming
resources
£
207,696
232,791		 Outgoing
resources
£
180,156
134,179		 At 31st Dec
2020
£
51,565
204,856
130,269 440,487 314,335 256,421
2019
£
1,706
225
1,931
2019
£
26,667
-
26,667
7. Debtors
Prepayments
Gift Aid recoverable		 2020
£
2,306
38
2,344 1,931
8. Liabilities due within one year
Unrestricted income received in advance
Pension Contributions in arrears		 2020
£
50,541
1,470
52,011 26,667
9. Analysis of net assets between funds
Tangible fixed assets
Cash and bank
Other current assets
(Liabilities)
Net assets at year end		 Unrestricted
2020
£
-
254,523
2,344
(52,011)		 Restricted
2020
£
-
51,565		 Total
2020
£
-
306,088
2,344
(52,011)		 Total
2019
£
-
155,005
1,931
(26,667)
204,856 51,565 256,421 130,269

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10. Restricted funds analysis
Current Year 2020
Specified salaries
Restricted general running costs
Specified projects (North Kensington)
Specified projects (Hammersmith)
Covid-19 Response
Love Your Neighbour project
Restricted funds analysis
Prior Year 2019
Specified salaries
Restricted general running costs
Specified projects (North Kensington)
Specified assets (e.g. IT equipment)		 Brought
forward
£
-
-
24,025
-
-
-		 Income
£
33,800
60,000
8,000
25,730
76,166
4,000		 Expenses
£
33,800
60,000
25,358
7,960
49,038
4,000		 Carried
forward
£
-
-
6,667
17,770
27,128
-
24,025 207,696 180,156 51,565
Brought
forward
£
-
-
-
-		 Income
£
24,600
25,000
48,050
5,850		 Expenses
£
24,600
25,000
24,025
5,850		 Carried
forward
£
-
-
24,025
-
- 103,500 79,475 24,025

11. Lease and guarantee obligations

As at 31 December 2020 the Charity was not committed to any lease agreements or guarantees.

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12. Related party transactions

The following trustees or key management personnel (KMP) were connected to people or organisations that either received funds from or made donations to Crosslight.

Trustee or KMP Related position
Related party transaction
Martin Duffy
(Trustee)		 Trustee of TW Money Advice
Service (TWMAS)
TWMAS made contributions of £6,500
during 2020 (£6,500 in 2019)
Member of St Stephen’s
church, Twickenham
St Stephen’s provided free premises
from which the charity operated
Francis Ellison
(Trustee)		 Trustee of St Paul’s Money
Advice Service (SPMAC)
SPMAC made contributions of
£11,300 during 2020 (£10,500 in 2019)
Trustee of St Paul’s church,
Hammersmith
St Paul’s provided free premises from
which the charity operated
Mark Farrar
(Trustee)		 Member of Tonbridge Baptist
Church (TBC)
TBC provided free premises from
which the charity operated
Tom Jackson
(Trustee)		 Trustee and Curate at Holy
Trinity Brompton church (HTB)
HTB made contributions of £43,900
during 2020 (£43,900 in 2019) and
provided free premises from which
the charity operated
CEO of Love Your Neighbour
(LYN)
Some of our branches are delivery
partners of LYN. LYN also provided
grant funding through one of our
partners of £4,000 in 2020 (£0 in 2019)
Nick Lines
(Trustee)		 Trustee of Chiswick Money
Advice Centre (CMAC)
CMAC made contributions of £1,625
in 2020 (£0 in 2019)
Trustee of St Nicholas church,
Chiswick
St Nicholas made contributions of
£4,875 during 2020 (£6,500 in 2019)
and provided free premises from
which the charity operated
Barry Lock
(Trustee)		 Trustee of West Kent Debt
Advice (WKDA)
WKDA made contributions of £23,500
during 2020 (£23,500 in 2019)
Member of Tonbridge Baptist
Church (TBC)
TBC provided free premises from
which the charity operated
Seonaid Mackenzie
(Trustee)		 Member of Holy Trinity
Brompton church (HTB)
HTB made contributions of £43,900
during 2020 (£43,900 in 2019) and
provided free premises from which
the charity operated

No trustees received any remuneration from the charity during the year.

During 2020, Crosslight did not receive any donations from Trustees (2019 £5,000).

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“I was in such a state when we first met and now, I'm a different person.”

Crosslight Advice is a registered Charitable Incorporated Organisation (charity no. 1163306) and is authorised and regulated by the Financial Conduct Authority (registration no. 715066). Crosslight is part of the Community Money Advice network of debt advice agencies and a member of AdviceUK. Crosslight holds the Advice Quality Standard.

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