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2023-03-31-accounts

Charity registration number 1169879

Company registration number 10286899 (England and Wales)

CITIZENS ADVICE LIVERPOOL LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

CITIZENS ADVICE LIVERPOOL LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr S F Anton
Ms K M Crowe
Mrs A M Gibbon
Mr F T Hont
Dr J B Organ
Mr P R Wilkie
Ms D Aspinall
Ms E Carey
Ms J K Vithlani
Ms R S Harrison
Mr S C Turner
Secretary Ms H Jessop
Charity number 1169879
Company number 10286899
Registered office 242 Picton Road
Wavertree
Liverpool
L15 4LP
Auditor DSG
Castle Chambers
43 Castle Street
Liverpool
L2 9TL

CITIZENS ADVICE LIVERPOOL LIMITED

CONTENTS

Page
Trustees' report 1 - 7
Statement of trustees' responsibilities 8
Independent auditor's report 9 - 11
Statement of financial activities 12
Balance sheet 13
Statement of cash flows 14
Notes to the financial statements 15 - 28

CITIZENS ADVICE LIVERPOOL LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2023

The trustees present their annual report and financial statements for the year ended 31 March 2023.

This report aims to provide an overview of the activities of Citizens Advice Liverpool for the financial year 20222023, along with the presentation of financial accounts. It will present statistical information showcasing the organization's performance in alignment with its mission and objectives.

For the families and individuals supported, a single event like job loss, relationship breakdown, illness, or disability can have a profound and lasting impact. At Citizens Advice Liverpool, the charity understands the critical role it plays in assisting those facing such challenges, and remains committed to providing comprehensive support.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives

The charity’s objects are to promote any charitable purpose for public benefit by the advancement of education, the protection and preservation of health, and the relief of poverty, sickness and distress in particular, but not without limitation, for the benefit of the community of Liverpool and its surrounding areas.

The charity provides and assists in the provision of services and outlets supplying a free, independent, confidential and impartial service of advice, information and counsel for the public.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding the activities undertaken during the year and are satisfied that the information provided in the report and accounts meet the public benefit reporting requirements.

The Mission

Citizens Advice Liverpool aims to reduce inequality, deprivation and the lack of access to justice due to a lack of knowledge of personal rights, by providing information advice and educational services within the local communities.

Citizens Advice Liverpool believe everyone has the right to a fair chance of participating in society and will exercise a responsible influence on the development of social policies and services, both locally and nationally.

The Vision

Citizens Advice Liverpool is a charity working to combat discrimination, alleviate poverty and remove barriers to justice.

The charity does this by providing quality assured, free trusted advice and information delivered accessibly and innovatively and by being an informed influence and advocate on social policy.

The Values – What the charity stands for Five core values underpin the approach:

CITIZENS ADVICE LIVERPOOL LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Activities

The primary objective throughout the year was to deal with the increasing demand from the cost of living crisis, whilst continuing to build the face to face services and outreach services lost during the pandemic.

The charity expanded the face to face advice offer by working with Liverpool City Council’s One Stop Shops, Libraries, community and health venues and hospitals. The in-person delivery worked alongside the telephone and digital channels developed during lockdown. Investing in the services to expand the workforce meant seeking funding to underpin the delivery of the core services.

As the year progressed, the demand for the services grew exponentially due to the effects of the cost of living crisis. Despite the increase in delivery the charity could only answer 60% of callers to the Advice line services due to the volume of those turning to the services for help. The effects of the Cost of Living Crisis brought increased complexity to the cases handled, involving financial insecurity, housing instability and legal complexities needing representation or tribunal. The team of staff and volunteers provided detailed casework and comprehensive support to meet these challenges and positively impact the lives of those served. This added another level of pressure to delivery as the charity sought to increase services against a need for more time heavy casework.

During the financial year 2022-2023, the charity achieved significant milestones in supporting clients and addressing various issues: 33,114 clients received advice and assistance during the reporting period. The increase in unanswered calls against the increase in services indicates the growing demand for the services offered, despite the best efforts to bring in extra resources.

Number of Issues Addressed:

The organisation successfully addressed a total of 106,458 issues faced by clients. These issues encompass a wide range of areas such as welfare benefits, debt, housing, immigration, and demonstrate that clients often face a multitude of related pressures.

The main advice areas this year centre around crisis support, welfare benefits advice, debt, housing, with a huge increase in the numbers of people in food and fuel poverty mirroring the 348% increase in fuel prices.

CITIZENS ADVICE LIVERPOOL LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

The impact of this advice being:

Debt:

The team managed a total debt value of £8,962,141, showing the significant impact of Citizens Advice Liverpool in helping individuals manage their debts and achieve financial stability. As the year progressed the number of employed people with negative budgets demonstrated the strain that the increase in inflation coupled, interest rates and fuel prices on.

The top ten debt issues are indicated below, however this does not reflect the increase in complexity of the case work being undertaken, the number of issues dealt with per person has increased substantially.

The Health Program continued to provide essential services to vulnerable patients, expanding face-to-face delivery in both primary and secondary care settings, including mental health wards.

Energy and Food Vouchers:

The demand for food and fuel vouchers increased substantially due to the cost of living crisis. Through partnerships with Liverpool City Council and the LATAN partnership, the charity distributed much-needed fuel support to residents, administering the Fuel voucher scheme to more than 7,000 residents aged 65 and above in 11 weeks.

Working in Partnership with Services and the Community:

The charity continues to prioritise partnership working, collaborating with a diverse range of partners who share the values and commitment to tackle poverty and inequality by developing successful, collaborative relationships. Through the collaborative approach, the charity has been able to expand its services and offer a broader range of advice to the community. While most of the projects are locally focused, others span across the Liverpool City region and national initiatives.

The commitment to partnership working was strengthened when funding to host and develop the Liverpool Access to Advice Network was obtained.

CITIZENS ADVICE LIVERPOOL LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Research and Campaigns:

The commitment to research and campaign work involves ongoing research into client-centric issues and advocating for systemic change. The research covered a range of topics, including rising fuel prices and prepayment meters, the impact of benefit sanctions, and the two-child limit. The charity produced reports and utilised local media to promote the campaigns for change.

Collecting and analysing client data informed the service priorities, enabling the charity to focus on those who neededits most.

The Teams:

The teams work hard to ensure the highest standards throughout the service and it is their dedication and commitment is woven into every aspect of the organisation, particularly in the services offered to clients. That commitment to quality assurance and ongoing improvement that makes the service a success. The charity takes great pride in receiving additional certifications, including the 'Workplace Wellbeing Charter' and the 'Fair Employment Charter.' These accreditations demonstrate the dedication to promoting employee well-being and fostering fair employment practices within the organisation.

The charity adheres closely to its membership, contractual and governance obligations to ensure a quality assured and robust delivery to clients and stakeholders alike.

Once again Citizens Advice Liverpool received a pass at excellent level on the yearly Performance and Quality Framework audit, supported by the continued high score in the quarterly independent quality of advice assessment.

Volunteering:

The team of dedicated volunteers played a pivotal role in making the service impactful. During the past year, the charity welcomed 55+ new volunteers, totalling 85 volunteers. They contributed 29,155 hours, equivalent to £317,789.50 in financial benefit to the service at real living wage levels. The value of their real-life experience, training, and support was evident, as 35% transitioned into permanent employment, many within the service itself.

In conclusion, the service has made significant strides in supporting the community during the financial year 20222023. Despite the challenges posed by the legacy of austerity and the pandemic, coupled with the war in Ukraine that has led to the cost-of-living crisis. The dedication of the charity to comprehensive support and collaborative partnerships has allowed it to positively impact the lives of those who are served. The charity remains committed to its mission and objectives as it continus its vital work in the coming years.

CITIZENS ADVICE LIVERPOOL LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Financial review

Total incoming resources for the year amounted to £3,392,323 (2022: £3,440,345) and total resources expended amounted to £3,361,839 (2022: £3,363,136) giving a surplus before actuarial gains/losses in respect of the pension liability of £30,484 (2022: £77,209).

Total reserves at the 31 March 2023 were £1,419,537 (2022: £1,369,438).

Total unrestricted reserves were £1,368,643 (2022: £1,253,909) and restricted reserves were £50,894 (2022: £115,529). The general unrestricted reserves are £1,001,918 (2022: £880,489).

The trustees extend their gratitude to Liverpool City Council who continued to support the core operating capacity of the charity.

Reserves policy

Citizens Advice Liverpool Limited is required to ensure that any free reserves are available in each financial year to meet any reasonable foreseeable contingency. Despite the short term and volatile nature of the funding the management team and trustees will endeavour to secure funding on a regular basis from as many sources as possible. The charity take all necessary steps to ensure that the cessation of one or more funding streams would not present so serious a challenge to the future of the organisation that it could not be managed. So as to continue to provide a best value advice service in reviewing the potential costs that could arise should a significant reduction in income be incurred, the trustees have determined that “free reserves” should be maintained equal to between 3 and 6 month’s normal operating expenditure. Based on current levels of general unrestricted reserves, this is currently sufficient for between 3 and 4 months of operating costs.

The charity does not have an investment policy and does not currently hold investments

Review of risks

The trustees have assessed the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate exposure to the major risks.

Loss of funding is always the principal external risk. However, the charity did not experience any cancellation of existing contracts due to COVID-19 and is moving into a period of recommissioning for some services with optimism having performed robustly against targets throughout the year. Overall risks are mitigated by seeking to secure funding across a range of sources and by holding sufficient reserves to cover some loss of funding.

Internal risks are mitigated by the implementation of strong financial controls which are regularly reviewed. The Finance, Risk and Governance Sub-Committee meets quarterly to review risks and controls.

Strategic plans for the future are to concentrate on integrating and optimising the services, in particular rationalising office space whilst continuing to seek opportunities to widen the scope of the services provided. The charity will look for opportunities to work co-operatively with other Local Citizens Advice offices across the City Region. The impact of COVID-19 has accelerated work on the client journey and will influence decisions on the best way to provide a positive client experience while keeping staff, volunteers and clients safe.

Structure, governance and management

The charity is a company limited by guarantee, incorporated on 19th July 2016 and registered as a charity on 26 October 2016. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. The current Memorandum and Articles of Association have been approved by the Charity Commission and Companies House. In the event of the company being wound up members are required to contribute an amount not exceeding £1.

Newly appointed trustees are provided with a comprehensive induction to Citizens Advice Liverpool Limited through the provision of induction and training material, and mentoring by experienced trustees.

At the 31 March 2023 the charity had 11 trustees.

CITIZENS ADVICE LIVERPOOL LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mr S F Anton Ms K M Crowe Mrs A M Gibbon Mr F T Hont Mr A G Malthouse (Resigned 17 May 2023) Dr J B Organ Mr P R Wilkie Ms D Aspinall Ms E Carey Ms J K Vithlani Ms R S Harrison Mr S C Turner

Trustees are elected from the local community and must either reside or work in Merseyside. An elections committee made up of trustees, the Company Secretary and chaired by the Chair, oversees the elections process for Board appointments. A separate process agreed by the Trustee Board is followed for the election of the Chair. The procedure detailed above identifies the process by which each of the current trustees were elected. No other persons or bodies external to the charity were entitled to appoint persons to the Trustee Board.

A successful recruitment drive took place, targeted to improve the equality and diversity of the board and bridge the skill gaps identified. The Board is delighted to welcome our four new Trustees to the service.

Citizens Advice Liverpool is governed by its members Trustee Board that 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 the organisation and for ensuring that the charity satisfies its legal and contractual obligations. Trustees meet as a minimum quarterly and delegate the day-to-day operation of the organisation to the Chief Officer who reports directly to the trustees. The Trustee Board is independent from management. A register of members' interests is maintained at the registered office and is available to the public

Newly appointed Trustees are provided with a comprehensive induction to Citizens Advice Liverpool Limited through the provision of induction and training materials and mentoring by established trustees.

Citizens Advice Liverpool Limited has membership of Citizens Advice (CA), the operating name of the National Association of Citizens Advice Bureau, which provides a framework for standards of advice and casework management as well as monitoring progress against these standards. Operating policies are independently determined by the Trustee Board of Citizens Advice Liverpool in order to fulfil its charitable objects and comply with the national membership requirements.

The charity also co-operates and liaises with a number of other advisory services, local charities and social services departments on behalf of clients. Where one of the trustees holds the position of trustee/director of another charity they may be involved in discussions regarding that other charity but not in the ultimate decision-making process.

Auditor

In accordance with the company's articles, a resolution proposing that DSG be reappointed as auditor of the company will be put at a General Meeting.

CITIZENS ADVICE LIVERPOOL LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees' report was approved by the Board of Trustees.

Mr P R Wilkie Trustee

16 August 2023

CITIZENS ADVICE LIVERPOOL LIMITED

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2023

The trustees, who are also the directors of Citizens Advice Liverpool Limited for the purpose of company law, are responsible for preparing the Trustees' 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

CITIZENS ADVICE LIVERPOOL LIMITED

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF CITIZENS ADVICE LIVERPOOL LIMITED

Opinion

We have audited the financial statements of Citizens Advice Liverpool Limited (the ‘charity’) for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

CITIZENS ADVICE LIVERPOOL LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF CITIZENS ADVICE LIVERPOOL LIMITED

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report.

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

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

The following laws and regulations were identified as being of significance to the entity:

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and noncompliance with laws and regulations) comprised of: inquiries of management and the Trustees as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of Trustee meeting minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud

CITIZENS ADVICE LIVERPOOL LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF CITIZENS ADVICE LIVERPOOL LIMITED

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

Jean Ellis BA FCA CTA (Senior Statutory Auditor) for and on behalf of DSG

16 August 2023

Chartered Accountants Statutory Auditor

Castle Chambers 43 Castle Street Liverpool L2 9TL

CITIZENS ADVICE LIVERPOOL LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2023 2023 2023 2022 2022 2022
Notes £ £ £ £ £ £
Income and endowments from:
Charitable activities 3 824,430 2,531,463 3,355,893 914,524 2,525,821 3,440,345
Investments 4 10,421 - 10,421 - - -
Other income 5 26,009 - 26,009 - - -
Total income 860,860 2,531,463 3,392,323 914,524 2,525,821 3,440,345
Expenditure on:
Charitable activities 6 757,133 2,604,706 3,361,839 891,926 2,471,210 3,363,136
Net incoming/(outgoing)
resources before
transfers 103,727 (73,243) 30,484 22,598 54,611 77,209
Gross transfers
between funds (8,608) 8,608 - 39,493 (39,493) -
Net income/(expenditure)
for the year/
Net incoming/(outgoing)
resources 95,119 (64,635) 30,484 62,091 15,118 77,209
Other recognised gains and losses
Actuarial gain on
defined benefit
pension schemes 19,615 - 19,615 102,723 - 102,723
Net movement in funds 114,734 (64,635) 50,099 164,814 15,118 179,932
Fund balances at 1 April
2022 1,253,909 115,529 1,369,438 1,089,095 100,411 1,189,506
Fund balances at 31
March 2023 1,368,643 50,894 1,419,537 1,253,909 115,529 1,369,438

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

The notes on pages 15 to 28 form part of these financial statements.

CITIZENS ADVICE LIVERPOOL LIMITED

BALANCE SHEET

AS AT 31 MARCH 2023

2023 2023 2022 2022
Notes £ £ £ £
Fixed assets
Tangible assets 11 329,535 342,542
Current assets
Debtors 12 117,075 252,965
Cash at bank and in hand 1,882,010 1,052,561
1,999,085 1,305,526
Creditors: amounts falling due within
one year 13 (909,083) (259,015)
Net current assets 1,090,002 1,046,511
Total assets less current liabilities 1,419,537 1,389,053
Provisions for liabilities - (19,615)
Net assets 1,419,537 1,369,438
Income funds
Restricted funds 16 50,894 115,529
Unrestricted funds
Designated funds 17 366,725 373,420
General unrestricted funds 1,001,918 880,489
1,368,643 1,253,909
1,419,537 1,369,438

The financial statements were approved by the Trustees on 16 August 2023

Mr P R Wilkie Trustee

Company registration number 10286899

CITIZENS ADVICE LIVERPOOL LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2023

2023 2022
Notes £ £ £ £
Cash flows from operating activities
Cash generated from operations 21 819,028 53,298
Investing activities
Purchase of tangible fixed assets - (25,249)
Investment income received 10,421 -
Net cash generated from/(used in)
investing activities 10,421 (25,249)
Net cash used in financing activities - -
Net increase in cash and cash equivalents 829,449 28,049
Cash and cash equivalents at beginning of year 1,052,561 1,024,512
Cash and cash equivalents at end of year 1,882,010 1,052,561

Included in the year end cash and cash equivalents figure is £606,520 of cash being held pending payment out to clients.

CITIZENS ADVICE LIVERPOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

Charity information

Citizens Advice Liverpool Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 242 Picton Road, Wavertree, Liverpool, L15 4LP.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

1.5 Expenditure

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs can not be directly attributed to particular headings the have been allocated to activities on a basis consistent with the use of resources.

CITIZENS ADVICE LIVERPOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings 2% per annum straight line Leasehold land and buildings straight line over the lease Fixtures and fittings 25% straight line Computers 25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

Assets are capitalised if valued over £1,000 at the point of receipt.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

CITIZENS ADVICE LIVERPOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.10 Taxation

The charity benefits from various exemptions from taxation offered by tax legislation and is not liable to corporation tax on income and gains falling within those exemptions. Recovery is made of tax deducted from qualifying income and from receipts under gift aid.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as incurred.

CITIZENS ADVICE LIVERPOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in income/(expenditure) for the year.

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other recognised gains and losses in the period in which they occur and are not reclassified to income/ (expenditure) in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

The charity participates in the Pensions Trust's Growth Plan for certain of its employees. The Growth Plan is a multi-employer pension plan. Assets and liabilities of the scheme are not accounted for in the financial statements in accordance with FRS 102. A deficit funding plan has been agreed and a provision has been recognised in the financial statements for the net present value of the future contributions.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Charitable activities

Advice Advice
2023 2022
£ £
Services provided under contract 3,351,154 3,439,321
Other income 4,739 1,024
3,355,893 3,440,345
Analysis by fund
Unrestricted funds 824,430 914,524
Restricted funds 2,531,463 2,525,821
3,355,893 3,440,345

CITIZENS ADVICE LIVERPOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

4 Investments
Unrestricted Total
funds
2023 2022
£ £
Interest receivable 10,421 -
5 Other income
Unrestricted Total
funds
2023 2022
£ £
Other income 26,009 -
6 Charitable activities
**Direct costs ** Direct costs
2023 2022
£ £
Staff costs 2,829,449 2,894,079
Depreciation and impairment 13,007 7,822
Premises costs 156,798 151,080
Office costs 296,751 221,477
Staff and volunteer costs 49,163 57,953
3,345,168 3,332,411
Share of governance costs (see note 7) 16,671 30,725
3,361,839 3,363,136
Analysis by fund
Unrestricted funds 757,133 891,926
Restricted funds 2,604,706 2,471,210
3,361,839 3,363,136

CITIZENS ADVICE LIVERPOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

7 Support costs

Support costs
Support
Governance		 2023 2022
costs costs
£ £ £ £
Audit fees - 13,550 13,550 14,400
Legal and professional - 2,207 2,207 15,727
Other costs - - - 72
Trustee expenses - 914 914 526
- 16,671 16,671 30,725
Analysed between
Charitable activities - 16,671 16,671 30,725
Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the
charity during the year.
Employees
The average monthly number of employees during the year was:
2023 2022
Number Number
Administration 21 24
Service providers 85 87
Total 106 111
Employment costs 2023 2022
£ £
Wages and salaries 2,512,510 2,577,902
Social security costs 222,852 216,649
Other pension costs 94,087 99,528
2,829,449 2,894,079

8 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

9 Employees

There were no employees whose annual remuneration was more than £60,000.

10 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

CITIZENS ADVICE LIVERPOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

11 Tangible fixed assets
Freehold land Leasehold Fixtures and Computers Total
and buildings land and fittings
buildings
£ £ £ £ £
Cost
At 1 April 2022 334,715 95,991 214,521 14,847 660,074
At 31 March 2023 334,715 95,991 214,521 14,847 660,074
Depreciation and impairment
At 1 April 2022 16,295 95,991 190,399 14,847 317,532
Depreciation charged in the year 6,695 - 6,312 - 13,007
At 31 March 2023 22,990 95,991 196,711 14,847 330,539
Carrying amount
At 31 March 2023 311,725 - 17,810 - 329,535
At 31 March 2022 318,420 - 24,122 - 342,542
12 Debtors
2023 2022
Amounts falling due within one year: £ £
Trade debtors 65,732 74,463
Other debtors 44,573 169,958
Prepayments and accrued income 6,770 8,544
117,075 252,965
13 Creditors: amounts falling due within one year
2023 2022
£ £
Other taxation and social security 64,814 90,800
Deferred income 79,027 63,928
Trade creditors 53,446 22,555
Other creditors 625,299 21,237
Accruals 86,497 60,495
909,083 259,015

Included in the year end other creditors balance is £606,520 of cash is being held pending payment out to clients.

CITIZENS ADVICE LIVERPOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

14 Provisions for liabilities 2023 2022
Notes £ £
Retirement benefit obligations 15 - 19,615
- 19,615

15 Retirement benefit schemes

Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £94,087 (2022 - £99,528).

CITIZENS ADVICE LIVERPOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

15 Retirement benefit schemes (Continued) (Continued)
Defined benefit schemes
Key assumptions
2023 2022
% %
Discount rate 4.9 2.8
Expected rate of increase of pensions in payment 2.8 3.5
Expected rate of salary increases 4.2 4.9
CPI inflation 2.7 3.4
Mortality assumptions
The assumed life expectations on retirement at age 65 are:
2023 2022
Years Years
Retiring today
- Males 21.2 20.9
- Females 23.7 24.0
Retiring in 20 years
- Males 22.6 22.4
- Females 25.5 25.9
Amounts recognised in the profit and loss account:
2023 2022
£ £
Current service cost 18,000 19,000
Net interest on defined benefit liability/(asset) 1,000 1,000
Other costs and income 87 100
Total costs 19,087 20,100
The amounts included in the balance sheet arising from the charity's
obligations in respect of defined benefit plans are as follows:
2023 2022
£ £
Present value of defined benefit obligations 984,000 1,092,615
Fair value of plan assets (984,000) (1,073,000)
Deficit in scheme - 19,615

CITIZENS ADVICE LIVERPOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

15 Retirement benefit schemes (Continued)

Movements in the present value of defined benefit obligations:

Movements in the present value of defined benefit obligations:
2023
£
Liabilities at 1 April 2022 1,092,615
Current service cost 18,000
Contributions from scheme members 4,000
Actuarial gains and losses (160,021)
Interest cost 31,000
Other (1,594)
At 31 March 2023 984,000

The defined benefit obligations arise from plans which are wholly or partly funded.

Movements in the fair value of plan assets:

Movements in the fair value of plan assets:
2023
£
Fair value of assets at 1 April 2022 1,073,000
Interest income (114,000)
Contributions by the employer 21,000
Contributions by scheme members 4,000
At 31 March 2023 984,000

The fair value of plan assets at the reporting period end was as follows:

The fair value of plan assets at the reporting period end was as follows:
2023 2022
£ £
Equity instruments 477,000 533,000
Debt instruments 130,000 137,000
Property 107,000 103,000
Cash 17,000 23,000
Other 253,000 277,000
984,000 1,073,000

CITIZENS ADVICE LIVERPOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

16 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Transfers Balance at Incoming Resources Transfers Balance at
1 April 2021 resources expended 1 April 2022 resources expended 31 March 2023
£ £ £ £ £ £ £ £ £
Core Advice Service - 167,430 (168,182) 752 - 170,500 (170,500) - -
Contact Centre Services 18,001 589,945 (591,043) (12,013) 4,890 477,239 (490,737) 8,608 -
Local Services - Health 38,088 712,772 (670,088) (12,475) 68,297 732,029 (749,432) - 50,894
Local Services - Money Advice 14,427 727,116 (718,089) (15,757) 7,697 693,183 (700,880) - -
Local Services - Social Welfare 29,895 222,309 (222,309) - 29,895 405,649 (435,544) - -
Local Services - Immigration and Settlement - 106,249 (101,499) - 4,750 52,863 (57,613) - -
100,411 2,525,821 (2,471,210) (39,493) 115,529 2,531,463 (2,604,706) 8,608 50,894

CITIZENS ADVICE LIVERPOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

16 Restricted funds

(Continued)

Core Advice Service - CAL’s core face to face, telephone and web advice service, providing free, confidential and impartial advice to people who live and work in Liverpool.

Contact Centre Services - CAL’s telephone and web advice focusing on specific areas of hardship or need and particularly in relation to Universal Credit and access to emergency food.

Local Services - Health - Advice and Link Work services, improving mental health and wellbeing by supporting patients with non-medical issues that may impact on their health. CAL provides treatment options that help patients work towards debt reduction, financial stability, better housing and employment conditions and reduced social isolation. The services also include specialist areas providing support for perinatal patients, those living with cancer and those with chronic respiratory illnesses.

Local Services - Money Advice - Provision of a specialist debt, money and pensions advice service. Particularly supporting clients to maximise their income and manage debt issues.

Local Services - Social Welfare - Services providing specialist welfare benefits advice and representation. Working in partnership with other agencies to improve the outcomes of clients who do not have access to legal aid or advice. Providing initiatives to help improve health and economic wellbeing for ethnic communities in Liverpool.

Local Services - Immigration and Settlement - Provision of a welcome programme for Hong Kong British Nationals (overseas) settling in Liverpool and support to clients seeking EU Settled Status following Brexit.

Restricted Funding has been provided by the following organisations:

CITIZENS ADVICE LIVERPOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

17 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Balance at Incoming Resources Balance at
1 April 2021 resources expended 1 April 2022 resources expended 31 March 2023
£ £ £ £ £ £ £
Restructuring
reserve fund 55,000 - - 55,000 - - 55,000
Land and
buildings
reserve fund 325,115 - (6,695) 318,420 - (6,695) 311,725
380,115 - (6,695) 373,420 - (6,695) 366,725

Restructuring reserve fund

This fund reflects the estimated costs relating to the expected organisational restructure around recommisioning of significant projects in 2021/22 and 2022/23.

Land and buildings reserve fund

This fund reflects the carrying value of the property owned and used operationally by the charity.

18 Analysis of net assets between funds

Unrestricted
Restricted
**Total **		 Unrestricted
Restricted
Restricted
Total
funds funds funds funds
2023 2023 2023 2022 2022 2022
£ £ £ £ £ £
Fund balances at 31
March 2023 are
represented by:
Tangible assets 329,535 - 329,535 342,542 - 342,542
Current assets/(liabilities) 1,039,108 50,894 1,090,002 930,982 115,529 1,046,511
Provisions and
pensions - - - (19,615) - (19,615)
1,368,643 50,894 1,419,537 1,253,909 115,529 1,369,438

19 Company limited by guarantee

Citizens Advice Liverpool Limited is incorporated under the Companies Act as a company limited by guarantee. The liability of the members is limited to £1.

CITIZENS ADVICE LIVERPOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

20 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023 2022
£ £
Aggregate compensation 294,829 77,783
21 Cash generated from operations 2023 2022
£ £
Surplus for the year 30,484 77,209
Adjustments for:
Investment income recognised in statement of financial activities (10,421) -
Depreciation and impairment of tangible fixed assets 13,007 7,822
Movements in working capital:
Decrease/(increase) in debtors 135,890 (22,472)
Increase in creditors 634,969 72,932
Increase/(decrease) in deferred income 15,099 (82,193)
Cash generated from operations 819,028 53,298

22 Analysis of changes in net funds

The charity had no debt during the year.