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2021-12-31-accounts

Financial Statements

12 months to 31 December 2021

RESTORING DIGNITY RENEWING HOPE

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number 250015

“You have been a great help to me in dealing with all my debts.

You helped me to lift my head above water after I had been made redundant and had no finances to fall back on.

You helped me to manage with what I received and to deal with all my financial worries.

You supported me to be able to reaching agreements with creditors.”

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CONTENTS

1. Welcome 04
2. Mission and Purpose 05
3. Activities, Achievements and Performance 06
4. Structure 12
5. Governance and Management 13
6. Funding and Support 14
7. Financial Review, Risk Management and Reserves Policy 15
8. Independent Examiner’s report to the trustees 16
9. Annual Accounts 17

CHARITY INFORMATION

Charity number 250015

Registered office and principal address Queen Caroline Street Hammersmith, London, W6 9PJ

Trustees

Francis Ellison (Chair) Conan McKenzie (Treasurer) Judith Sara Thomas (Secretary) Rosemary Brown Daniel Rolles Stephen Richards

Bankers

HSBC, 21 King’s Mall, King Street, Hammersmith, London, W6 0QF

Independent examiner

David Keers

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1. WELCOME

From the Chair of Trustees

It gives me great pleasure to present our Annual Report and Financial Statements for the year 2021.

2021 was a difficult year for many, with Covid-19 continuing to affect society – in health terms but with huge financial ramifications too. Crosslight Hammersmith’s work is directly aimed to address some of these issues and 2021 was a remarkable and challenging year for us.

On the one hand, we continued to face the pressures of lockdown, both on our services and on the emotional wellbeing of staff and clients. And we have seen demand increase significantly as more and more people find themselves facing impossible choices such as paying the bills or buying food.

On the other hand, we were able to support more people, hold more appointments, resolve more debts, and help lift more people out of poverty than ever before.

I have been very thankful to witness the strength of our organisation and how staff and volunteers have risen to meet the challenge. All have worked tirelessly to help our clients. With their help the organisation has grown in size and reaches out to yet more people in more areas.

Our funders have been wonderfully generous too. It is thanks to them that our financial strength is greater than ever, which increases our options for the future, and enables us to help yet more people.

As we look ahead, it is clear that our work will be needed more than ever. I am proud

of the work accomplished over 2021, but also the planning for this more demanding future.

But in the midst of all that has happened, the team has remained client-focused – and this deserves the warmest tribute.

Francis Ellison, Chair of Trustees

“I have different issues with my health and have problems with depression and anxiety.

One part of my problem was the lack of control over bills, benefits, credit card.

You helped me to manage and reduce bills. Helped me to fill out benefit forms. Helped me with housing issue and to reduce my stress. In addition, you helped my son with his education.

For a few years you were like my

family, gave me peace and solved my financials problems .

I will never forget your help.”

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2. MISSION & PURPOSE

St Paul’s Money Advice Centre is an independent, person-centred charity working to alleviate poverty amongst the most vulnerable in our communities and help them build a better future.

SPMAC works in partnership with the charity Crosslight Advice (charity number 1163306) and fulfils its mission through the joint operation of the Crosslight branch in Hammersmith, known as Crosslight Hammersmith. Our joint vision is to restore dignity and renew hope to those in need by reducing debt poverty and improving financial capability.

Our approach is deeply personal, taking individual needs and capabilities into account as we meet each person at their point of need and help them to full restoration, however long it takes. Our service is set up to enable us to walk alongside our clients over the long term if necessary; there is no cap on appointments and no limit to the duration of support we provide.

Our programmes provide comprehensive debt & benefit advice, build financial resilience through money education and budgeting coaching, and we mentor clients with openended holistic support.

Our Christian ethos and our five core values lie at the heart of all that we do and underpin our work. These values are:

The objective of St Paul’s Money Advice Centre is:

“The alleviation of poverty through the provision of free money advice to any person requiring help or support with any aspect of personal finance including debt by the provision of services, advocacy, advice and information.”

We adhere to the Charity Commission’s guidance on public benefit when reviewing the objectives and aims of St Paul’s Money Advice Centre and in planning future activities.

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3. ACTIVITIES, ACHIEVEMENTS & PERFORMANCE

----- Start of picture text -----
Advise Equip Encourage
We provide comprehensive A key part of our mission is to We know that debt and
debt and benefit advice, create lasting change so that financial difficulty are often
focusing on the unique our clients can face the future symptoms of a deeper
circumstances of each with more confidence, better problem. We work hard to
individual. The end-to-end equipped to meet their full support clients through their
support we provide includes potential. We do this through difficulties and empower
in-depth casework for the one-to-one budget coaching them to turn their lives around.
most vulnerable. We act as and our 'Money Course' We achieve this by taking a
advocates for our clients to workshops – both face-to- genuinely holistic approach
ensure their voices are heard, face and online. We help which includes mentoring,
intermediating on their behalf clients look beyond the social engagement,
when necessary. We journey immediate crisis and we work befriending, and
with our clients and support with them to build resilience encouragement. Our advisers
them each step of the way, over the long-term. Our and coaches initiate this
working at their pace and programmes are designed to support with their clients on a
adapting to their individual help clients understand their case-by-case basis. Examples
needs and abilities. Our open- own finances and teach them include helping with job
ended support is available for simple budgeting skills they applications, applications for
as long as needed. can apply day to day. residency or citizenship, and
support with family life.
----- End of picture text -----

The dominant theme of 2021 was the continuing impact of the pandemic, both in terms of how we were able to deliver our service, and the great hardship faced by those we support. The other theme was rising demand on our service, both in terms of the volume of cases but just as importantly in terms of the complexity of needs and vulnerability of the clients we supported. We stand almost alone in the areas we serve in terms of breadth and depth of support, meaning that we are the last and only hope for many of our clients.

Throughout much of the year we had to provide our services remotely. We were delighted that in the second half of the year, as restrictions were eased, we were able to re-open to face-to-face appointments, incredibly important to our most vulnerable clients.

The real story of the year was the extraordinary lengths to which our team went to support those we serve. Their dedication, determination, and compassion shone more brightly than ever. The client stories contained in the following pages are snapshots of the work we undertook and are a testament to the many lives changed.

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Pete’s Story

Pete* is 34, has been profoundly deaf since birth and was brought to us by his mother and aunt shortly before lockdown. Since then, calls have been conducted with his brother.

He was living alone and had been referred to us because he had significant rent arrears. This were quickly resolved with the support of his housing association. There were, however, about £36,000 of other debts including a benefit overpayment of £22,700. He had pleaded guilty to obtaining this benefit fraudulently before his family had become aware of his situation. They felt that due to a lack of social awareness, he had been misled by so-called friends and had not benefited in any way. They decided not to appeal the court’s decision.

As a result of the conviction, he had lost his job and was receiving Disability Living Allowance and the standard element of Universal Credit. We helped Pete to increase his benefits by resolving a glitch in his housing element, applying for Council Tax Support, Water Help and the Limited Capability for Work & Work-Related Activity element of Universal Credit. This took about 8 months to resolve, but thanks to this intervention his income increased by £1,275 per month.

During this time, we wrote to creditors, and some agreed to write off the debts. We helped establish fuel direct deductions from Universal Credit for his utility bills and to set up some regular payments.

One creditor was not supportive and applied for a County Court Judgement. Pete was very anxious about what they might do next. Funded by a back-payment of benefit, we applied for bankruptcy which was granted covering £13,000 of debts, excluding the DWP fraud.

His financial awareness has improved since he first came to us, and he is taking care to ensure that he pays his bills on time. Pete sent us a video clip in which he signed:

“Thanks for walking with me all the way”

*Name changed

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2021 Highlights

2021 in numbers Over 356 clients supported, representing over 576 family members Over 1,123 appointments held Over £356k of annualised income gains secured for clients

New satellites

We were thrilled to open new satellite branches in Fulham and Shepherd’s Bush to reduce the distance clients have to travel to see us. Our plan is to increase the capacity of both locations by recruiting and training more local volunteers.

Increased capacity for 2022

We were able to secure new funding, which will allow us to hire an extra case worker in 2022. In addition, we will employ two part-time case managers who previously were employed by our partner Crosslight.

Over £340k of unpayable debt write-offs secured for clients

Renewed focus on volunteers

The challenges faced by our clients

This has been undoubted success of the year. Together with clients Crosslight Advice we have restructured and relaunched our Over 941 internal training and resolved, including rent development programme, arrears, utility debts, and including our process for bailiffs recruiting and onboarding new volunteers. We now have a new, simpler but higher-level training programme for new volunteers which takes them straight to MaPS-accredited Adviser status. In consultation with staff and volunteers we launched a continuous development programme for both current and new advisers which covers technical skills, soft/interpersonal skills, and wellbeing.

£21,000 average amount owed by our debt clients

Over 941 individual debts resolved, including rent arrears, utility debts, and bailiffs

Half of our clients have incomes below the poverty line

Half of our debt clients have long-term physical or mental health problems

Broadening the support

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

2 in 3 are struggling with utility arrears

9 in 10 say their situation is causing stress or depression

Half say their family relationships are in jeopardy

Crosslight Advice appointed a new specialist benefits adviser to support our work, and the number of referrals we have made shows the pressing need for such a role. The benefits adviser is based one day a week at Hammersmith to see clients face to face.

Benefits are a significant aspect of our work, and we will continue to expand our welfare benefits provision, particularly by upskilling volunteers.

Greater use of technology

We continued to explore new ways of using technology to improve the effectiveness of our services. One example is the new Money Course platform that was launched by our partner Crosslight Advice. Another has been the adoption of flexible remote working and telephone-based appointments.

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Move4Change 2021

On Saturday 11 September our annual Move4Change event took place. Designed to shine a spotlight on the issues of poverty on our doorstep, the walk followed the Thames path to Chiswick and back (10 km).

Over 70 people took part and enjoyed a cream tea at the finish, as well as an eye-opening day finding out more about the realities of life for clients supported by Crosslight. In addition, we were able to raise essential funds for our work.

Social Impact

It is crucial for us to know if we are meeting the needs of those we support. Our holistic approach means that we 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, designed to evaluate the practical and emotional impact of our work. 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
70% 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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Our Team

Another objective in 2021 was to increase the capacity of our volunteers, to leverage the work of our staff team. With case complexity increasing, and the advice landscape becoming more and more technical, training is key. We have a comprehensive training programme using both internal and external resources, so staff and volunteers can develop their accredited competencies.

Our employed part-time Case Manager Maria Van Ommen accepted a new role leading the new Crosslight branch in Ealing.

We have been encouraged that five new volunteers joined us during the year. During the same period, eight volunteers left the organisation, three of whom moved to volunteer with the new Crosslight branch in Ealing. We now have 37 volunteers and four more are completing their training.

Our Unique Approach

– Personal not prescriptive much advice is becoming more remote and generic in its delivery, with a focus on information rather than individual advice . In contrast, our service is tailored to the individual, meeting them at their point of need and working at their pace. Although we have procedures to follow, our service is flexible and adapts to the needs of each individual.

Outcomes not volumes – many agencies are more focused on meeting volume targets. In contrast, although we seek to help as many people as possible, we are not driven only by numbers. We want to ensure all our clients get the support they need to move beyond a current crisis. We are therefore more interested in the progress of each individual rather than showing off our client volumes.

Time to give not timed-out – many advice providers are time-limited in the support they give. In contrast, we support some of the most vulnerable in our communities, many of whom struggle with very complex circumstances. We therefore aim to support our clients for as long as they need to remain engaged with us.

– Big picture not just the big problem most of our clients come to us at a point of crisis, often with one or two main issues that they need support with. Our first task is to help them with these big problems. But where we can, we always seek to go further, to look at the big picture beyond the immediate crisis and support our clients as they deal with the underlying causes of their difficulties.

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RESTORING DIGNITY RENEWING HOPE

Abdul’s* Story

Abdul was referred to us by a health professional. He struggled with depression and was worried he would lose his home, as he was behind with his mortgage payments. After he lost his job, he only received the standard allowance of Universal Credit, but nothing towards his mortgage interest.

We helped him to apply for Support for Mortgage Interest (SMI - a favourable loan from the Government which pays the mortgage interest, via a scheme run by the banks and Government).

Unfortunately Abdul’s bank, over the course of 6 months managed to lose the application several times. It was a very challenging process, as it was difficult to get in touch with the right department and we were passed from one department to another; they gave conflicting information, and at one point denied that SMI existed and told us we were making it up (implying we were providing bad advice to our client).

Finally, we raised a complaint with the bank. They missed their own deadlines for responding to this and also missed the (longer) FCA deadline. Abdul finally received an apology for the delay, confirmation that they had now processed the SMI application and gave him a £250 compensation.

Abdul was delighted: it showed we were getting somewhere (persistence and patience paid off) and his willingness to get on and take action to fix his situation has improved. He is no longer in danger of losing his home.

In the meantime, we were able to apply for some health-related benefits, which increased his monthly income by £600 and further benefits increased it by almost another £300 a month.

Abdul told us that our support was not only important to resolve the financial issues, but even more important for his mental well-being. We were often the only people he was talking to and the appointments were a helpful motivation for him to leave his home and isolation.

*Name changed

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4. STRUCTURE

Our model is one of collaboration and partnership, recognising that we cannot achieve lasting change without the support and participation of the communities we serve. It is important for us to provide holistic support to our clients and we are aware that we can only do that in partnership with other organisations.

We are an active member of the Hammersmith and Fulham Advice Station and work together with many different agencies (for example the H&F Law Centre, Family Mosaic, Hestia) to support our clients in a holistic way. We continue to be an approved agency for the London Borough of Hammersmith & Fulham Housing & Council Tax Departments. Crosslight has a formal partnership agreement with the Rent Income team who refer their neediest clients to us (typically those with multiple debts whom they feel in need of sustained support).

We continue to enjoy strong relationships with local partners, referrals from whom are a primary source of clients. We currently make and receive direct referrals from numerous organisations including;

Indirect referrals come from local authority benefit and council tax teams, Citizens Advice, GPs, Mencap, AgeUK, community support groups, refugee support groups, churches, family support services, and numerous local agencies and advice providers.

We exchange knowledge and training with the other Crosslight branch staff and volunteers that serve the communities in:

London

South East Branches (Kent)

South West Branches

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5. GOVERNANCE & MANAGEMENT

St Paul’s Money Advice Centre (SPMAC) is a registered charity which is governed by a Trust Deed.

The charity has a formal relationship with the registered Charitable Incorporated Organisation Crosslight Advice (1163306) and jointly operates Crosslight Hammersmith, one of several Crosslight branches serving the needs of local communities.

SPMAC and Crosslight assume different responsibilities regarding the overall operations of Crosslight Hammersmith, to ensure an efficient and cost-effective structure that avoids duplication, reduces overall costs through shared resources and economies of scale, and provides the biggest impact to those being served. The responsibilities of each organisation are codified in a memorandum of understanding between Crosslight Advice and SPMAC. Crosslight Advice is the entity authorised by the Financial Conduct Authority, and the staff of SPMAC provide debt advice as agents of Crosslight Advice under the day-to-day management of the Crosslight CEO.

SPMAC is governed by a board of trustees who are appointed by existing trustees by resolution in a trustee meeting. They provide local accountability and oversight to ensure that the service and activities reflect the needs and priorities of the community the branch serves. 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 established two committees to coordinate and oversee the operations and fundraising of SPMAC.

The trustees have delegated day-to-day management of SPMAC to the branch manager, supported by a team of staff and volunteers.

Pay & Remuneration

Pay and remuneration for all staff including key management personnel is determined by the trustees based on individual performance and appropriate benchmarking.

Related parties

Francis Ellison is a trustee of Crosslight Advice as well as SPMAC.

SPMAC also has a partnership with St Paul’s Hammersmith (SPH) and benefits from the use of free office and meeting facilities. Stephen Richards is also a trustee (PCC member) of St Paul’s Hammersmith.

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6. FUNDING & SUPPORT

SPMAC continued to receive valuable support from local charities and from Trust for London, together with individual donations. We have set up a trustee-led fundraising committee to develop and implement a fundraising strategy for the charity.

In 2020 SPMAC received funding over £112,667 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. SPMAC 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:

and the Better Way Foundation .

We were able to raise £12,870 through our fundraising event Move4Change. We are very grateful for everyone raising money and supporting this event.

Provision of support

The trustees would also like to sincerely thank our partner churches St Paul’s Church, St Dionis, St Stephen's generously who provides us with appointment spaces in Hammersmith, Shepherd’s Bush and Fulham. They also support us with a ready pool of willing volunteers as well as vital pastoral support and access to other community services.

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7. FINANCIAL REVIEW, RISK MANAGEMENT, & RESERVES POLICY

We achieved our goal to raise sufficient funds for growth. This enables us to increase capacity by employing additional staff in 2022. The funding position is reflected in the total incoming resources of £112,667, significantly higher than in previous years. Spending on charitable activities was £55,335. It is expected this will be more than double in 2022.

The trustees continue to review and assess the key operational, governance, compliance and financial risks faced by SPMAC. Risks to the charity are monitored by the trustees 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, excluding expenditure backed by restricted funding for 12 months or more.

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. We achieved our reserves target which is fixed at six months costs, based on projected future expenditure. Our plans for growth in 2022 means that this target is markedly higher than in past years.

Total Funds 31.12
Less: restricted funds
Less: stated liabilities
Free reserves:
Free reserves requirement:
Staff costs (6 months)
Other costs (6 months)		 2021
2020
2019
96,152
38,820
44,468
539
1,106
17,812
95,614
37,714
26,656
49,779
17,500
10,254
16,550
7,325
6,316
Total 66,329
24,825
16,570

Statement of disclosure to auditors

So far as the Trustees are aware, there is no relevant information of which the independent examiner is unaware. Additionally, the Trustees believe they have taken all the necessary steps that they ought to have taken as Trustees in order to make themselves aware of any relevant information and to establish that the independent examiner is aware of that information.

Francis Ellison, Chair of Trustees Dated: 17.10.2022

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8. INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES FOR THE PERIOD ENDED 31 DECEMBER 2021

I report on the accounts for the period ended 31.12.21 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 as I am a qualified accountant (CPA Australia).

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.

Date: 14.10.2022

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9. ANNUAL ACCOUNTS

Receipts and payments for the period 01.01.2021 – 31.12.2021

Unrestricted Restricted Total Last year
funds funds
Receipts
Betterway Foundation 25,000 25,000
Chiswick & Brentford Rotary Club 800 800
Donations 16,411 16,411 15,049
Easyfundraising 89 89 88
Fundraising events 12,870 12,870
Hammersmith United Charity 15,000 15,000 7,267
Lind Foundation 2,500 2,500
Service agreement 19,298 19,298 6,432
The Hornby Lonsdale Charitable 500 500 500
Trust
Trust for London 20,000 20,000 20,000
United in Hammersmith 200 200
Sub total (Gross income for AR) 77,468 35,200 112,668 49,336
Asset and investment sales - - - -
Total receipts 77,468 35,200 112,668 49,336
Payments
Fundraising event 206 206
Insurance 379 379 370
Shared costs (Crosslight) 10,500 10,500 10,500
Office expenses 627 200 827 3,043
Salary/staff costs 7,609 35,302 42,911 40,045
Client support 265 265
Training 247 247 150
Sub total 19,568 35,767 55,335 54,108
Asset and investment purchases
Laptop - - 876
Sub total - - - 876
Total payments 19,568 35,767 55,335 54,984
Net of receipts (payments) 57,900 -567 57,333 -5,648
Transfer between funds - -
-		 -
Cash funds last year end 37,714 1,106 38,820 44,468
Cash funds this year end1
 95,614 539 96,152 38,820

1 The funds at the of the year enables the charity to increase their capacity and expenses for 2022.

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Statement of assets and liabilities at the end of the period

Details Unrestricted Restricted
funds funds
Cash funds Bank account 95,614 539
Total cash funds 95,614 539
Other monetary assets - -
Investment assets Cost Current
value
4 HP laptops 2,873 0
3 HP laptops 1,594 0
1 Lenova laptop 876 438
Assets retained for the - -
charity’s own use
Liabilities Amount When due
- -
he financial statements were approved by the Board of Trustees on 12.09.2022 and signed
n their behalf by:
rancis Ellison Conan McKenzie
rustee (Chair) Trustee (Treasurer)

The financial statements were approved by the Board of Trustees on 12.09.2022 and signed on their behalf by:

Francis Ellison Trustee (Chair)

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