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CROYDON CITIZENS ADVICE BUREAUX LIMITED
A Company Limited by Guarantee
Company Number 02197919
ANNUAL REPORT AND FINANCIAL STATEMENTS
for the year ended
31 March 2021
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CROYDON CITIZENS ADVICE BUREAUX LIMITED
| Index | Page |
|---|---|
| Report of the Trustees | 1 to 9 |
| Independent Examiner’s Report | 10 |
| Statement of Financial Activities | 11 |
| Balance Sheet | 12 |
| Statement of Cash Flows | 13 |
| Notes to the Financial Statements | 14 to 23 |
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CROYDON CITIZENS ADVICE BUREAUX LIMITED
Report of the Trustees for the year ended 31 March 2021
The Trustees present their report and the financial statements for the year ended 31 March 2021
REFERENCE AND ADMINISTRATIVE DETAILS
TRUSTEES at the date of this report
Ian Collins Chair (appointed 01 July 2021) Joseph Chapman James Daglish Davina Hehir Pat Knight Homer Taylor Nilani Sritharan Caroline Rogers Charmaine Lartey Treasurer elect from 08 December 2020
TRUSTEES who have served during the year
| Gilli Driver | resigned 07 December 2020 |
|---|---|
| Ian Collins | resigned as Chair and Trustee 07 December 2020 |
| Wendy Love | resigned as Treasurer and Trustee 07 December 2020 |
| Rekha Gomes | resigned as Chair and Trustee 30 June 2020 |
*Ian Collins re-joined the Trustee Board and was re-elected Chair, following the departure of Rekha Gomes
REGISTERED OFFICE 48 - 50 Portland Road South Norwood London SE25 4PQ
REGISTRATION NUMBERS
Company No 02197919 Charity No 298761
CHIEF EXECUTIVE AND COMPANY SECRETARY
Claire Keetch
BANKERS
CAF Bank 25 Kings Hill Avenue Kings Hill West Malling, Kent ME19 4JQ
INDEPENDENT EXAMINER
P D Mills ACA CTA Palmer McCarthy Chartered Certified Accountants Suite 70, Capital Business Centre 22 Carlton Road, South Croydon, Surrey CR2 0BS
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CROYDON CITIZENS ADVICE BUREAUX LIMITED
Report of the Trustees (continued) for the year ended 31 March 2021
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
Croydon Citizen Advice Bureaux Limited is a company limited by guarantee, having no share capital, and is registered as a charity.
Croydon Citizen Advice Bureaux Limited was registered at Companies House on 24 November 1987 under registration number 02197919, and the charity is registered with the Charities Commission under reference number 298761.
Croydon Citizens Advice Bureaux Limited is governed by its Memorandum and Articles of Association as amended on 26 April 2016.
Trustees
Trustees, who are also directors of the company, are elected from the local community and generally reside or work in the borough of Croydon or the surrounding area.
New Trustees are recruited through personal contacts or advertising campaigns.
Trustees are elected by the Members at the Annual General Meeting. A Trustee has to retire after three years following the Annual General meeting where they were appointed. Trustees can be appointed during the year but must then be elected at the subsequent Annual General Meeting.
The Trustees have no beneficial interest in the charity other than as members. All Trustees are members of the charity and guarantee to contribute £1 in the event of it winding up.
New Trustees are inducted into the workings of the charity through informal discussions with staff and volunteers, together with mentoring from established Trustees. An induction pack is provided which includes copies of the Memorandum and Articles of Association, the most recent Statutory Accounts and minutes of the last Board meeting.
Organisational Structure
Croydon Citizens Advice Bureaux Limited is governed by its Trustee Board which is responsible for setting the strategic direction of the organisation and the policy of the charity. The Trustees carry the ultimate responsibility for the conduct of the charity and for ensuring that the charity satisfies its legal and contractual obligations. Trustees meet as a minimum quarterly and delegate the day-today operation of the organisation to the CEO. The Trustee Board is independent from management. A register of members’ interests is maintained at the Central Administration Office, and is available to the public on request.
The remuneration of key management personnel is determined by the Trustee Board, based on the performance of the personnel and of the charity as a whole.
Croydon Citizens Advice Bureaux Limited also co-operates and liaises with a number of other advisory services, local charities and local authority 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.
Croydon Citizens Advice Bureaux Limited is a member of Citizens Advice, the operating name of the National Association of Citizens Advice Bureaux, and must conform to the aims and principles of Citizens Advice in the conduct of its activities, 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 Croydon Citizens Advice Bureaux Limited in order to fulfil its charitable objects and comply with the national membership requirements.
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CROYDON CITIZENS ADVICE BUREAUX LIMITED
Report of the Trustees (continued) for the year ended 31 March 2021
Chief Executive
Claire Keetch, Chief Executive, has responsibility for the executive management of Croydon Citizens Advice Bureaux Limited and for the line management of the staff team and volunteers.
Risk management
The Board of Trustees, who meet at three monthly intervals, are responsible for ensuring that Croydon Citizens Advice Bureaux Limited has the systems and means to provide reasonable assurance against inherent risks. A risk register covering governance, operational, financial, compliance and external risks is regularly reviewed at each Finance Committee and Trustee Board meeting. Major risks have been reviewed. Systems and procedures have been established to manage those risks.
OBJECTIVES AND ACTIVITIES
Croydon Citizens Advice Bureaux Limited objects are to promote any charitable purpose for the benefit of people living and working in the London Borough of Croydon and surrounding areas ("the area of benefit") by the advancement of education, the protection and preservation of health and the relief of poverty, sickness and distress.
Croydon Citizens Advice Bureaux Limited aims to:
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Provide the advice people need for the problems they face;
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Improve the policies and practices that affect people’s lives.
The service provides free, independent, confidential and impartial advice to everyone on their rights and responsibilities. It values diversity, promotes equality and challenges discrimination.
The success of the charity is measured by the key statistics outlined under “Achievements and Performance”.
Public benefit entity
The Trustees confirm that the charity complies with being a public benefit entity as defined by FRS 102 as: ‘an entity whose primary objective is to provide goods or services for the general public, community or social benefit and where any equity is provided with a view to supporting the entity’s primary objectives rather than with a view to providing a financial return to equity providers, shareholders or members’. The Trustees have had regard to the Charity Commission’s guidance on public benefit entities.
The year in review
Citizens Advice Croydon provides free, independent, confidential and impartial advice to everyone on their rights and responsibilities. It values diversity, promotes equality and challenges discrimination.
Description of Service
Due to the outbreak of the Coronavirus pandemic and subsequent national lockdown, the Portland Road premises closed in March 2020. Since that time, all service delivery moved to online and telephony channels, with all staff and volunteers working from home .
The following table shows the level of services offered across enquiry areas:
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CROYDON CITIZENS ADVICE BUREAUX LIMITED
----- Start of picture text -----
Benefits & Tax Credits √ √ √ √
Benefits Universal √ √ √
Credit
Consumer goods and √ √ √
services
Debt √ √ √ √
Discrimination √ √ √
Education √ √ √
Employment √ √ √
Financial services & √ √ √
capability
Health & community √ √ √
care
Housing √ √ √ √ √
Immigration & asylum √ √ √
Legal √ √ √
Other √ √ √
Relationships & family √ √ √
Tax √ √ √
Travel & transport √ √ √
Utilities & √ √ √
communications
Advice
Generalist Specialist Casework Legal Aid Pro Bono Tribunal Comment
Enquiry Type Initial Check Assessment
Representation
----- End of picture text -----
Additional Services
In addition to the advice services described above, Citizens Advice Croydon offers some targeted, externally funded services as follows:
| Service Target client/Project focus Funder Comments |
Service Target client/Project focus Funder Comments |
Service Target client/Project focus Funder Comments |
Service Target client/Project focus Funder Comments |
|---|---|---|---|
| Macmillan Welfare Benefits Advice Individuals with a cancer diagnosis, their familyor carers Macmillan Funded to Dec 2024 |
|||
| Help to Claim Service Clients making a UC claim; support to first,correctpayment DWP Funded to March 2022 |
|||
| Housing First Aid Service | Development of a Housing First Aid approach, supporting partners to deliver First Aid and make casework referrals |
Trust for London |
Funded to May 2024 |
Research and Campaigns
Research and campaigning work is shaped by evidence gathered from Croydon residents. It provides insight into the policies and practices that negatively impacts the community and we use it to advocate for change by raising awareness and influencing people who have the power to improve life for local people.
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CROYDON CITIZENS ADVICE BUREAUX LIMITED
During the year evidence forms were submitted to Citizens Advice in support of campaigns to change policy and practice affecting people’s lives.
Contribution of volunteers
Citizens Advice Croydon’s volunteers undertake a variety of important roles from admin, research and campaigns to fundraising and client facing roles as receptionists, assessors, form fillers and advisers. The service we offer would not be possible without the time and commitment given freely by each and every one of our volunteers and each is uniquely valued.
Volunteering also has tangible benefits for volunteers and society, through happier, healthier and more productive citizens.
The calculated public value of volunteering for 2020/21 has been calculated at £370,281.
All volunteers gain at least one practical skill through volunteering
8 in 10 of our unemployed volunteers believe they are overcoming barriers to employment
9 in 10 have increased sense of purpose and self esteem
Over half of our retired volunteers say they feel less at risk of social isolation
3 in 4 volunteers identifying as having a mental health condition felt better able to manage their condition
ACHIEVEMENTS AND PERFORMANCE
Key Statistics
During the year, the service has:
Supported 5,255 clients Dealt with 26,262 advice problems Achieved over £3.7 million in financial outcomes for clients
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CROYDON CITIZENS ADVICE BUREAUX LIMITED
The effects of the Coronavirus pandemic had an impact on the types of enquiries coming to the service. With many thousands of people furloughed from their jobs and seeking support from the benefits system, employment and welfare benefits alone accounted for 58% of our work during the year.
Impact of our service
We work with some of those most in need. Local Citizens Advice clients are almost five times as likely to live on a low income than an average member of the England and Wales population. This could lead to not having enough money to eat healthily, maintain adequate accommodation and fully participate in society.
Why people need us
Over 1 in 2 clients reported that their problem was brought about by, or affected by, the pandemic
1 in 2 clients with a physical medical condition reported that their problem was making it worse
Around 7 in 10 clients are disabled or report a long term health condition.
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CROYDON CITIZENS ADVICE BUREAUX LIMITED
Around 1 in 5 clients are not confident using the internet, including to search for information or fill in application forms online.
All data from Citizens Advice National Impacts & Outcomes Research 2020.
Timely, high-quality advice has a significant impact for our clients, improving their lives by reducing stress and the positive effect this has on health and wellbeing and improving finances through maximising income and managing debts.
Plans for the Future
The organisational Business and Development Plan for 2021– 2024 sets out a set of Strategic Priorities as follows:
1. To implement a flexible service model 2. To increase the volunteer capacity of the organisation 3. To develop a strong advice partnership for Croydon 4. To implement a flexible organisational model
5. To improve the organisation’s infrastructure to support service and organisational models
6. To secure alternative premises to support the new service and organisational model Key to the organisation’s ability to deliver on these plans is the continuation of funding from Croydon Council, and in December 2019 Croydon Council awarded a new, 3-year Information and Advice contract to Citizens Advice Croydon, to start on 01 April 2020. The contract will be delivered in partnership with South West London Law Centre as a sub-contractor. 7. To diversify and broaden the organisational funding base
FINANCIAL REVIEW
Financial position
Incoming resources in the year were £615,145 (2019/20 £452,657). Of this £221,044 (2019/20 £177,562) related to project restricted activities. This represents a 36.1% increase in overall income on 2020/21.
An operating surplus of £138,308 was made in the year (2019/20 £186). As at 31[st] March 2021 current net assets totalled £358,019 (2020: £228,842). Total funds, after the provision for the defined benefit pension liability, totalled a deficit of £260,850 (2020: £399,158 deficit). The overall deficit position is a result of the £628,000 defined benefit pension deficit, recognised as a liability on the balance sheet.
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CROYDON CITIZENS ADVICE BUREAUX LIMITED
Reserves policy
Trustees reviewed and revised the reserves policy during the year:
The reserves policy requires the charity to designate a portion of its unrestricted funds to cover the organisation’s liabilities in the event of the wind up of the company:
Wind Up Reserve: This funds is provided to cover 3 month’s operating costs, plus redundancy costs, in the event of the wind up of the company. The increase of this fund in the year is due to a reassessment of the estimated overhead costs that would be payable in the event of winding up.
At 31 March 2021 £142,936 has been provided (2020 £98,289)
To better plan to meet the charity’s priorities as determined by its Business and Development Plan and to safeguard against an increasing volatile funding environment, Trustees agreed to set up the following Designated Reserve Funds in the year:
IT Infrastructure Fund: For the purchase of modern IT software and hardware to ensure that Citizens Advice Croydon has the appropriate infrastructure for the delivery of services and effective operation of the organisation.
At 31 March 2021 £30,000 has been provided to this fund.
Service Development Fund : This fund can support projects solely delivered by Citizens Advice Croydon, or initiatives delivered with other LCA’s or external partnerships.
At 31 March 2021 £50,000 has been provided to this fund.
Premises Fund : The fund can support costs relating to any dilapidations becoming effective at the end of the lease term, premises alterations/maintenance/moving costs.
At 31 March 2021 £30,000 has been provided to this fund.
Amounts allocated to each of these funds will be reviewed annually, after the calculation of the Wind Up Reserve.
Funding and Fundraising
The Trustees extend their gratitude to Croydon Council which has continued to support services during the year. Other funding has been received from:
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Macmillan Cancer Support
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DWP
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National Lottery Community Fund
The Coronavirus pandemic has had a significant impact on the type of fundraising activities usually undertaken by the Friends and Fundraising Committee, but any donations from individuals and clients are much valued.
CCAB did not have any borrowings from either providers of funding or other sources at the Balance Sheet date.
Investment policy
As required in its Memorandum paragraph 4.15, in furtherance to its objects, and for no other purposes, the charity has the power to invest or deposit funds in any lawful manner whilst having regard to the suitability of investments and the need for diversification.
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CROYDON CITIZENS ADVICE BUREAUX LIMITED
Going concern
The charity’s three-year Information and Advice contract with Croydon Council is due to end in March 2023.
Following Croydon Council’s issue of a Section 114 Notice back in the autumn of 2020, the authority is reviewing all its services and, grants and contracts as part of the Croydon Renewal Programme. At this time it is not clear what impact this programme will have on the Information and Advice contract. The Trustees consider that this uncertainty does not represent a reason for the charity to not be a going concern.
The charity ceased as an employer in the London Borough of Croydon pension fund, which crystallised the pension deficit in the year ended 31[st] March 2020. Croydon Council had previously agreed that they would take a pragmatic approach to the deficit. As such the Trustees consider that the pension deficit does not represent a reason for the charity to be not be a going concern.
TRUSTEES' RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENT
Company Law requires the charity trustees to prepare financial statements for each year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, for that period. In preparing those financial statements, the trustees are required to:
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a. select suitable accounting policies and then apply them consistently;
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b. observe the methods and principles in the Charities SORP;
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c. make judgments and estimates that are reasonable and prudent;
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d. state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
e. prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity. and to 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 taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Approved by the Trustees on 06 December 2021 and signed on their behalf by
Ian Collins Chair
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CROYDON CITIZENS ADVICE BUREAUX LIMITED
Independent examiner's report to the Trustees of Croydon Citizens Advice Bureaux Limited
I report on the Accounts of the company for the year ended 31st March 2020, which are set out on pages 11 to 23.
RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND EXAMINER
As the charity's trustees (and also the directors of the company for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
INDEPENDENT EXAMINER’S STATEMENT
Since the company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I a member of the ICAEW, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
15/12/2021
P D Mills ACA CTA Palmer McCarthy Chartered Certified Accountants
Suite 70, Capital Business Centre
22 Carlton Road South Croydon, Surrey CR2 0BS
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CROYDON CITIZENS ADVICE BUREAUX LIMITED Statement of Financial Activities (Including the Income & Expenditure Account) for the year ended 31 March 2021
| Notes INCOME Donations 2 Charitable activities 3 Investments 4 TOTAL INCOME EXPENDITURE Fund raising 5 Charitable activities 6 TOTAL EXPENDITURE NET INCOME/(EXPENDITURE) OTHER GAINS AND LOSSES 23 Transfer between funds 17 NET MOVEMENT OF FUNDS Total funds brought forward 17 Total funds carried forward 17 Remeasurement of net defined benefit liability |
Unrestricted Designated Restricted Funds Funds Funds 2021 2020 £ £ £ £ £ 774 - - 774 2,228 393,224 - 221,044 614,268 450,171 103 - - 103 258 394,101 - 221,044 615,145 452,657 - - - - 1,500 243,425 - 233,412 476,837 450,971 243,425 - 233,412 476,837 452,471 150,676 - (12,368) 138,308 186 - - - - (195,000) (167,015) 154,647 12,368 - - (16,339) 154,647 - 138,308 (194,814) (497,447) 98,289 - (399,158) (204,344) (513,786) 252,936 - (260,850) (399,158) Total Funds |
|---|---|
There were no other gains or losses other than those dealt with in the Statement of Financial Activities
The above amounts relate to continuing activities.
The notes on pages 14 to 23 form part of these financial statements.
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| CROYDON CITIZENS ADVICE BUREAUX LIMITED Company No. 02197919 Balance Sheet as at 31 March 2021 Note Fixed Assets Tangible Assets 13 Current Assets Debtors 14 Cash held as investment 15 Cash at bank and in hand Creditors: amounts falling due within one year 16 Net current assets Total assets less current liabilities Provision for defined benefit pension liability 23 Net Liabilities Unrestricted funds General funds 17 Designated funds 17 Restricted funds 17 Total Funds |
£ £ 9,131 21,947 76,114 280,755 378,816 20,797 358,019 367,150 (628,000) (260,850) (513,786) 252,936 - (260,850) 2021 |
2020 £ - 34,873 76,022 151,118 262,013 33,170 228,842 228,842 (628,000) (399,158) (497,447) 98,289 - (399,158) |
|---|---|---|
The directors have taken advantage of the exemption conferred by section 477 not to have these financial statements audited and confirm that no notice has been deposited under section 476 of the Companies Act 2006 requesting that an audit be conducted for the year ended 31 March 2021
The directors acknowledge their responsibility for ensuring the company keeps accounting records which comply with section 386 of the Act, and for preparing accounts which give a true and fair view of the state of affairs of the company at the end of its financial year, and of its income and expenditure for the financial year in accordance with sections 394 & 395, and which otherwise comply with the requirements of the Companies Act 2006 relating to accounts, so far as applicable to the company.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime within Part 15 of the Companies Act 2006, and in accordance with the Charities SORP (FRS102) and were approved by the Trustee Board on 6 December 2021 and signed on their behalf by
| Ian Collins | Charmaine Lartey |
|---|---|
| Chair | Treasurer |
The notes on pages 14 to 23 form part of these financial statements.
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CROYDON CITIZENS ADVICE BUREAUX LIMITED Statement of Cash Flows for the year ended 31 March 2021
| Net cash provided by (used in) operating activities (Note 19) Cash flows from investing activities Investment income Purchase of fixed assets Cash provided by (used in) investing activities Increase (decrease) in cash and cash equivalents at the end of the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year Reconciliation to cash and cash equivalents at the end of the year per the Balance sheet: Cash held as investment Cash at bank and in hand Total cash and cash equivalents at the end of the year per the Balance sheet |
2021 £ 143,315 103 (13,689) (13,586) 129,729 227,140 356,869 76,114 280,755 356,869 |
2020 £ (56,966) 258 - 258 (56,708) 283,848 227,140 76,022 151,118 227,140 |
|---|---|---|
There are no cash and cash equivalent balances that are not available for use by the company.
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CROYDON CITIZENS ADVICE BUREAUX LIMITED Notes to the Financial Statements
for the year ended 31 March 2021
1 ACCOUNTING POLICIES
a Basis of preparation
These financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102). The Charitable Company is a public benefit entity for the purposes of FRS102 and therefore the Charity also prepared its financial statements in accordance with the 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 (The FRS102 Charities SORP 2019), the Companies Act 2006 and the Charities Act 2011. The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts within these financial statements are rounded to the nearest pound, with the exception of note 23, which is rounded to the nearest thousand pounds.
b Company information
The company is a private company limited by guarantee and was incorporated in England and Wales under company number 02197919. The company is a registered charity under charity number 298761. The company's principal activity and operations are that of providing advice to residents of the London Borough of Croydon on a charitable basis. The registered office address is 48-50 Portland Road, South Norwood, London SE25 4PQ.
c Going concern
These financial statements have been prepared on a going concern basis. The Trustees consider that the defined benefit pension deficit does not represent a reason for the charity to not be a going concern (see the Trustees Report).
d Incoming Resources
Grants received are recognised in the Statement of Financial Activities in the period to which the grant relates. If any amount received is conditional upon the performance by the charity, and this has not been completed by the date of the Financial Statements, then a proportioned amount has been carried forward as deferred income.
Donations are recognised when received.
Bank interest and Gift Aid is accounted for when received.
The charity receives help in the way of voluntary assistance in advising the public but the value of these services has not been included in the Financial Statements. The value to the charity has been estimated and disclosed in the Trustees' Report.
e Resources Expended
Resources expended in respect of unrestricted activities are included in the Statement of Financial Activities on an accruals basis. Costs directly associated to any restricted project are accounted for when paid.
Support costs are allocated to charitable activities based on the time spent on each activity. Where appropriate an allocation is made to fundraising and governance.
VAT not recoverable, where applicable, is included with the resource expenditure.
f Fixed Assets
Fixed assets costing less than £2,000 are not capitalised and are written off in the year of purchase. Other items are depreciated over three years on a straight line basis.
g Debtors
Debtors are recorded at transaction price.
h Cash and cash equivalents
Cash and cash equivalents include cash in hand and deposits held with banks.
i Liabilities
Expenditure approved for payment but not paid is recorded as a liability on the balance sheet. Current liabilities consist of amounts expected to be settled within 12 months of the balance sheet date.
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CROYDON CITIZENS ADVICE BUREAUX LIMITED Notes to the Financial Statements for the year ended 31 March 2021
ACCOUNTING POLICIES (continued)
j Redundancy
Redundancy costs are accounted for on the accruals basis, and are initially shown as an expense within to Unrestricted Reserve. A transfer for the same amount is then made to the General Unrestricted Reserve from the Designated Reserve.
k Pension schemes
Pension contributions payable are accounted for in the period to which they relate. The Charity makes contributions to a defined benefit multi-employer pension scheme (see note 23 of the accounts). The assets of the scheme are held separately from those of the charity in independently administered funds. The charity has early-adopted the Amendments to FRS102: Multi-employer defined benefit plans. This was first adopted in the financial statements for the year ended 31st March 2019.
The liability recognised in the balance sheet in respect of the defined benefit plan is the present value of the defined benefit obligation at the balance sheet date less the fair value of the plan assets at the balance sheet date. The defined benefit obligation has been estimated by an independent actuary.
The fair value of the plan assets is measured in accordance with the FRS102 fair value hierarchy.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to "other gains and losses" on the Statement of Financial Activities. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as "remeasurement of net defined benefit liability".
The cost of the defined benefit plan, recognised within "Expenditure" on the Statement of Financial Activities, comprises: a) the increase in pension benefit liability arising from employee service during the period; and b) the cost of plan introductions, benefit charges, curtailments and settlements
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised within "Expenditure" on the Statement of Financial Activities, and is further disclosed within "Charitable Activities" as "Finance expense".
l Leases
Rental costs under Operating Leases are charged to the Income and Expenditure Account in equal amounts over the period of the lease.
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CROYDON CITIZENS ADVICE BUREAUX LIMITED Notes to the Financial Statements (Continued) for the year ended 31 March 2021
| Note 2 DONATIONS Donations Sundry donations 3 CHARITABLE ACTIVITIES Croydon Council - Local Government Grant Macmillan Benefits Advice Services Universal Credit Big Lottery Funding Citizens Advice Henry Smith Charitable Funding Pensionwise Others 4 INVESTMENTS Bank interest 5 FUND RAISING EXPENDITURE Support cost allocation 8 6 CHARITABLE ACTIVITIES EXPENDITURE Direct staff costs 11 Direct professional fees (legal aid work) Other direct costs Governance costs 7 Support cost allocation 8 Finance costs 23 |
Unrestricted Restricted Total £ £ £ 774 - 774 774 - 774 £ £ £ 367,307 - 367,307 - 85,071 85,071 - 71,252 71,252 - 64,721 64,721 25,860 - 25,860 - - - - - - 57 - 57 393,224 221,044 614,268 £ £ £ 103 - 103 £ £ £ - - - - - - £ £ £ 154,795 140,861 295,656 17,198 17,013 34,211 (1,867) 3,730 1,863 2,441 2,900 5,341 70,858 68,908 139,766 - - - 243,425 233,412 476,837 2021 |
2020 Total £ 2,228 2,228 £ 269,625 90,692 62,345 - 1,484 24,525 750 750 450,171 £ 258 £ 1,500 1,500 £ 253,148 - 800 7,228 189,795 - 450,971 |
|---|---|---|
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CROYDON CITIZENS ADVICE BUREAUX LIMITED Notes to the Financial Statements (Continued) for the year ended 31 March 2021
| Note 7 GOVERNANCE EXPENDITURE Independent examiner Trustee expenses 12 Legal & professional fees Support cost allocation 8 8 SUPPORT COSTS EXPENDITURE Staff costs 11 Staff and volunteer expenses Premises and establishment costs Office administration costs Other support costs Allocated to: Fund raising 5 Charitable activities 6 Governance 7 9 TAXATION 10 NET INCOME/(EXPENDITURE) This is stated after charging: Independent examiners remuneration Operating leases - Premises Operating leases - Equipment Pensions - defined contribution Depreciation The company was registered as a charity on 24 November 1987 and is |
2020 Unrestricted Restricted Total Total £ £ £ £ 951 1,129 2,080 3,340 157 187 344 60 1,333 1,584 2,917 - - - - 3,828 2,441 2,900 5,341 7,228 £ £ £ £ 32,738 31,437 64,175 132,968 1,563 2,415 3,978 5,229 15,274 12,736 28,010 9,181 21,159 22,198 43,357 43,917 124 122 246 3,828 70,858 68,908 139,766 195,123 £ £ £ £ - - - 1,500 70,858 68,908 139,766 189,795 - - - 3,828 70,858 68,908 139,766 195,123 2021 2020 £ £ 2,080 3,340 22,500 22,500 1,944 1,896 11,980 10,607 4,558 - 2021 exempt from corporation tax on its charitable activities. |
|---|---|
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CROYDON CITIZENS ADVICE BUREAUX LIMITED
Notes to the Financial Statements (Continued) for the year ended 31 March 2021
| Note 11 STAFF COSTS Salaries and wages Social security costs Pensions - defined benefit Pensions - defined contribution Redundancy Staff costs are analysed as: Direct staff costs 6 Support staff costs 8 The remuneration of key management personnel was £54,855 (2020: £50,500) The average number of employees during the year was Full time employees Part time employees The full time equivalent posts at the end of the financial year was Charitable purposes Management and administration 12 TRUSTEE EXPENSES Travel costs reimbursed Other costs No Trustees were reimbursed for expenses in the year (2020: two). No Trustee received any remuneration or fees for professional services. 13 FIXED ASSETS Cost Balance brought forward Acquired during the year Balance at 31 March 2021 Depreciation Balance brought forward Provided during the year Balance at 31 March 2021 Net balance 31 March 2021 31 March 2020 14 DEBTORS Trade debtors Prepayments No employee received emoluments of more than £60,000 (2020: Nil). |
2021 2020 £ £ 323,742 324,230 24,109 23,309 - 4,226 11,980 10,607 - 23,744 359,831 386,116 295,656 253,148 64,175 132,968 359,831 386,116 9 6 4 7 13 13 10.8 6.0 1.4 4.4 12.2 10.4 £ £ - 60 344 - 344 60 £ £ - - 13,689 - 13,689 - - - 4,558 - 4,558 - 9,131 - - - £ £ 19,345 30,898 2,602 3,975 21,947 34,873 Equipment |
|---|---|
12 TRUSTEE EXPENSES
14 DEBTORS
There are no debtors due after more than one year.
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CROYDON CITIZENS ADVICE BUREAUX LIMITED Notes to the Financial Statements (Continued)
for the year ended 31 March 2021
| 15 CASH HELD AS INVESTMENT Scottish Widows Cash at bank not used to meet short term cash commitments 16 CREDITORS : Amounts falling due within one year Social security and other taxes Accruals Deferred Income Other creditors 17 MOVEMENTS IN FUNDS Balance 1 April Incoming Outgoing 2020 Resources Resources £ £ £ Unrestricted funds General Funds (497,447) 394,101 243,425 Designated Funds Wind Up Reserve 98,289 - - IT Infrastructure Fund - - - Service Development Fund - - - Premises Fund - - - Subtotal: Designated Funds 98,289 - - Total Unrestricted Funds (399,158) 394,101 243,425 Restricted funds Macmillan Benefits Advice Services Project - 85,071 85,071 Universal Credit - 71,252 83,620 National Lottery Community Fund - 64,721 64,721 - 221,044 233,412 Total balance (399,158) 615,145 476,837 Balance 1 April Incoming Outgoing 2019 Resources Resources £ £ £ Unrestricted funds General Funds (349,991) 275,095 469,909 Designated Funds Wind Up Reserve 145,647 - - Subtotal: Designated Funds 145,647 - - Total Unrestricted Funds (204,344) 275,095 469,909 Restricted funds Henry Smith Charitable Funding - 24,525 24,525 Macmillan Benefits Advice Services Project - 90,692 90,692 Universal Credit - 62,345 62,345 - 177,562 177,562 Total balance (204,344) 452,657 647,471 |
2021 £ 76,114 £ - 18,549 - 2,248 20,797 Transfers £ (167,015) 44,647 30,000 50,000 30,000 154,647 (12,368) - 12,368 - 12,368 - Transfers £ 47,358 (47,358) (47,358) - - - - - - |
2020 £ 76,022 £ - 30,012 - 3,158 33,170 Balance 31 March 2021 £ (513,786) 142,936 30,000 50,000 30,000 252,936 (260,850) - - - - (260,850) Balance 31 March 2020 £ (497,447) 98,289 98,289 (399,158) - - - - (399,158) |
|---|---|---|
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CROYDON CITIZENS ADVICE BUREAUX LIMITED Notes to the Financial Statements (Continued) for the year ended 31 March 2021
18 ANALYSIS OF NET ASSETS BETWEEN FUNDS
| Fund balance as at 31 March 2021 is represented by Tangible fixed assets Cash balances Debtors Current liabilities Provision for defined benefit pension liability |
Restricted Total General Designated £ £ £ £ 9,131 - - 9,131 123,278 252,936 (19,345) 356,869 2,602 - 19,345 21,947 (20,797) - - (20,797) (628,000) - - (628,000) (513,786) 252,936 - (260,850) 2021 Unrestricted |
|---|---|
19 RECONCILIATION OF NET MOVEMENTS IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES
| Net movement in Funds Add: defined benefit actuarial adjustments recognised as an expense (note 23) Loss/(gain) on defined benefit pension scheme (note 23) Less: employer contributions to defined benefit pension scheme (note 23) Add: depreciation charge Less: investment income Decrease (increase) in debtors Increase (decrease) in creditors Net cash provided by (used in) operating activities |
2021 2020 £ £ 138,308 (194,814) - 4,000 - 195,000 - (10,000) 4,558 - (103) (258) 12,926 (7,329) (12,373) (43,566) 143,315 (56,966) |
|---|---|
20 PURPOSES OF RESTRICTED AND DESIGNATED FUNDS
Macmillan Cancer Support
Macmillan Cancer Support funds a welfare benefits service for individuals with a cancer diagnosis, their family and carers.
Universal Credit
These funds have been provided by the DWP for the provision of universal credit advice services.
National Lottery Community Fund
These funds are to support the charity's work with community organisations in Croydon to reach clients needing advice who have difficulties in accessing remote services.
Henry Smith Charitable Funding
Henry Smith had been funding the provision of a debt and welfare benefits advice service since 2017. The funding ended at the end of the 2019 calendar year.
Designated Funds
Wind Up Reserve
These funds have been provided to cover three months expenditure on routine bills and direct redundancy costs for all staff members, excluding any normal notice period.
IT Infrastructure Fund
These funds have been provided for the purchase of modern IT software and hardware to ensure that Citizens Advice Croydon has the appropriate infrastructure for the delivery of services and effective operation of the organisation.
Service Development Fund
This fund can support projects solely delivered by Citizens Advice Croydon, or initiatives delivered with other LCA’s or external partnerships.
Premises Fund
The fund can support costs relating to any dilapidations becoming effective at the end of the lease term, premises alterations/maintenance/moving costs.
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CROYDON CITIZENS ADVICE BUREAUX LIMITED Notes to the Financial Statements (Continued) for the year ended 31 March 2021
21 OPERATING LEASES
| within one year Future minimum lease payments due more than 5 years between 1 and 5 years |
Property Equipment Total £ £ £ 22,500 1,896 24,396 45,000 3,792 48,792 - - - 67,500 5,688 73,188 2021 |
2020 Total £ 24,396 75,838 - 100,234 |
|---|---|---|
22 RELATED PARTIES
London Borough of Croydon
The charity receives a grant from Croydon Council to fund the core operating capacity and the housing advice service. The charity has entered into a lease agreement to occupy premises in South Norwood from Croydon Council. The rent payable is £22,500 pa.
23 PENSIONS
Defined Benefit Pension Scheme
The disclosures below relate to the funded liabilities within the London Borough of Croydon Pension Fund ("the Fund") which is part of the Local Government Pension Scheme which is a defined benefit pension scheme.
Croydon Citizens Advice Bureaux Limited ("CCAB") ceased as an employer in the Fund on 20th September 2019. An independent actuary was commissioned by Croydon Council to carry out an actuarial valuation to determine the liabilities that will remain within the Fund on cessation, and the final contribution due from CCAB. The independent actuary determined the indiciative final contribution ("cessation deficit") due from CCAB as at 20th September 2019 to be £634,000. This was reported to CCAB in the independent actuary's report dated November 2019 ("cessation report"). CCAB subsequently contributed £6,000, resulting in an indicative deficit as at 31st March 2020 of £628,000. No communication has been received from the Fund since the cessation report. No contributions have been by CCAB made since 31 March 2020. As noted below, it is anticipated that the indicative deficit will be paid to the Fund over many years, and is subject to final actuarial assessment. The Trustees consider it appropriate to continue to account for the indicative deficit as a "Provision for defined benefit pension liability" as at 31 March 2021.
The most recent formal actuarial valuation of the Fund was carried out by the Fund actuary, as at 31st March 2016. The indicative cessation deficit and the deficit as at 31st March 2019 have been estimated by an independent actuary. This deficit repesents the excess of the defined benefit obligation above the fair value of the pension plan's assets.
In accordance with Financial Reporting Standard No. 102 (FRS 102) disclosure of certain information concerning assets, liabilities, income and expenditure related to the pension plan is required within these accounts. These disclosures are set out within this note, having made assumptions as detailed in the below paragrah. All figures contained within these disclosures are rounded to the nearest thousand pounds.
As no communication has been received from the Fund in the year, the below reconciliation of the opening and closing balances of the defined benefit obligation and the fair value of the pension plan's assets, shows no movement in the indicative deficit since 31 March 2020. CCAB has assumed that any such movements, if they do exist, would be immaterial relative to the size of the overall deficit, and consequently that this approach provides a materially accurate disclosure of the deficit for the purpose of these accounts.
Please refer to the company's financial statements for the prior year (note 23) for assumptions that were made last year in relation to the Reconciliation of scheme assets and liabilities: year to 31st March 2020 (as is disclosed below).
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CROYDON CITIZENS ADVICE BUREAUX LIMITED Notes to the Financial Statements (Continued) for the year ended 31 March 2021
Net pension liability
| Present value of the defined benefit obligation Fair value of the plan assets Net defined benefit liability Reconciliation of scheme assets and liabilities: Year to 31st March 2021 At 1st April 2020 Current service cost Interest income / (expense) Contributions by scheme participants Employer contributions Benefits paid Changes in financial assumptions Return on assets excluding amounts included in interest income At 31st March 2021 Year to 31st March 2020 At 1st April 2019 Current service cost Interest income / (expense) Contributions by scheme participants Employer contributions Benefits paid Changes in financial assumptions Return on assets excluding amounts included in interest income At 20th September 2019 (cessation) Employer contribution post cessation At 31st March 2020 Amounts recognised in the Statement of Financial Activities Charitiable activities Current service cost Net Interest expense Total defined benefit cost recognised within "Expenditure": Other gains and losses Charges in financial assumptions Return on assets excluding amounts included in net interest Total remeasurement recognised within "Other gains and losses" |
Year to Year to 31st March 2021 31st March 2020 £ £ 1,960,000 1,960,000 (1,332,000) (1,332,000) 628,000 628,000 Assets Liabilities Total £ £ £ 1,193,000 (1,632,000) (439,000) - - - - - - - - - - - - - - - - - - - - - 1,193,000 (1,632,000) (439,000) Assets Liabilities Total £ £ £ 1,193,000 (1,632,000) (439,000) - (4,000) (4,000) - - - 1,000 (1,000) - 4,000 - 4,000 (35,000) 35,000 - - (358,000) (358,000) 163,000 - 163,000 1,326,000 (1,960,000) (634,000) 6,000 - 6,000 1,332,000 (1,960,000) (628,000) Year to Year to 31st March 2021 31st March 2020 £ £ - 4,000 - - - 4,000 Year to Year to 2021 2020 £ £ - (358,000) - 163,000 - (195,000) |
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CROYDON CITIZENS ADVICE BUREAUX LIMITED Notes to the Financial Statements (Continued) for the year ended 31 March 2021
Employer membership statistics
The table below summarises the pension scheme membership data, as at 20th September 2019 for members receiving funded benefits.
| benefits. | |||
|---|---|---|---|
| Number | Total Salary / Pension |
Average age | |
| Actives | 0 | n/a | n/a |
| Deferred pensioners | 3 | £2,000 | 53 |
| Pensioners | 14 | £79,000 | 68 |
The service cost for the year ended 31st March 2021 is calculated using an estimate of the total pensionable payroll during the year. The scheme had no active members and therefore the total pensionable payroll during the year is Nil (2020: £14,000).
The major categories of plan assets as a percentage of total plan assets
The company ceased to be an employer in the London Borough of Croydon Pension Fund on 20th September 2019, and as such it is not considerred necessary for the estimated percentage asset allocation of the scheme for the year ended 31st March 2021 to be disclosed in these accounts.
The most recent estimated percentage asset allocation of the scheme (which was for the year ended 31st March 2019) was as follows:
| follows: | |
|---|---|
| Year to | |
| 31st March | |
| 2019 | |
| Equities | 61% |
| Bonds | 23% |
| Property | 14% |
| Cash | 2% |
Principal actuarial assumptions
The latest actuarial valuation of the London Borough of Croydon Pension Fund and CCAB's liabilities took place on 31st March 2016. Liabilities have been estimated by the independent qualified actuary. The principal assumptions used by the independent actuary in the cessation report, and in the report for the year ended 31st March 2019, were:
| Cessation 20th | Year to 31st | |
|---|---|---|
| Sept 2019 | Mar 2019 | |
| Pension increase rate (CPI) | 2.1% | 2.5% |
| Salary increase rate | n/a | 3.0% |
| Discount rate | 1.0% | 2.4% |
Life expectancy
Life expectancy is based on the Fund's VitaCurves with inprovements in line with the CMI2013 model assuming the current rate of improvements has peaked and will converge to a long term rate of 1.25% p.a. Based on these assumptions, the independent actuary's assessment of future life expectancies at age 65 is summarised below:
| Males | Females | |
|---|---|---|
| Current pensioners | 23.3 years | 24.9 years |
| Future pensioners | 25.6 years | 27.1 years |
Contributions for future years
Croydon Council has confirmed to CCAB that it will take a pragmatic approach to this deficit such that CCAB will continue in the short term with the arrangement of making an annual payment of £6,000 towards the deficit.
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