The trustees present their report and audited accounts for the year ended 31 March 2020.
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 governing document, 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)” (as amended for accounting periods commencing from 1 January 2016)
Aims of the charity
The charity's objects are to promote any charitable purpose for the benefits of the community in the area of Sandwell Metropolitan Borough and adjacent areas by the advancement of education, the protection and preservation of health and the relief of poverty sickness and distress (As defined in clause 3.1 of the Memorandum and Articles of Association) The charity is also a member of its National Association now known as Citizens Advice, which provides a framework for standards of governance advice and casework management as well as monitoring progress against these standards.
Strategies for achieving objectives
The policies that have been adopted to achieve this objective are as follows:
To follow the principles and guidelines set out by Citizens Advice
To produce an effective frontline advice service by harnessing a local diversity of volunteers and training them to a high standard
To sustain and assist the volunteer services by providing networked teams of managerial specialist and outreach staff
To control financial operations on a year to year basis by the appropriate use of a Business Plan and budget.
The charity also operates a Health and Safety Policy and an Equalities Policy which are reviewed annually.
We have continue to provide free, independent and confidential advice to the citizens of Sandwell and have continued to be involved in research and campaigns as requirements of the National Association of Citizens Advice.
In the 2019/20 Financial Year we saw 21,043 unique clients and assisted with 62,797 issues.
We have an integrated debt service which comprises of Core Debt Specialists and Money and Pensions Project (MAP) Debt Specialists. We have a digital integration project funded through the Big Lottery and European Social Fund and a service, Help to Claim, which assists clients with transition to Universal Credit. We introduced a new service in 2019 to assist newly arrived clients to settle in Sandwell and help those residents who are affected by the UK’s withdrawal from the European Union.
We have four locality teams which serve all six towns. These are multi-disciplinary teams that make a consistent offer of advice and support throughout the borough.
We employ 82 staff including; Digital Money Coaches, Advice Session Supervisors, Support Workers, Apprentices and a Management Team consisting of five Locality Managers, Officer Manager, Finance Manager, Training and Development Manager, Operations Manager and Chief Executive Officer.
Currently we have 80 volunteers who give their time each week to advise citizens of Sandwell.
The Trustee Board are grateful to the paid and voluntary staff for their continued support of the organisation and the ability to meet challenges and targets.
Total income for the year was £1,893,645 compared with £1,378,049 in the previous year. Total expenditure amounted to £1,677,705 compared with £1,299,328 in the previous year. The charity achieved a surplus of £215,940 compared with the previous year surplus of £78,721
Fixed assets are used only for charitable purposes to provide the necessary environment and resources to deliver the services to our clients. The charity has no subsidiary undertakings.
Reserves Policy
The reserves policy of the organisation is in line with good practice recommendations from Citizens Advice National guidelines for Financial Health Monitoring. Unrestricted and designated reserves should be maintained at approximately 3 months operating cost The purpose of this reserve is for both short term emergencies and long term contingencies arising from such matters such as a major reduction in funding or even total cessation of income. In the latter event. Liabilities could arise such as rental and other obligations on leases, statutory and contractual employment obligations and other incidental costs of winding up the charity reduction in funding or even total cessation of income. In the latter event, liabilities could arise from rent, leases, financial obligations such as contractual obligations to staff and other costs arising from winding up the charity.
The trustees acknowledge their responsibilities for Risk Management as set out in SORP (FRS102) They have identified and assessed the major risks to which the charity is exposed, and following on from this have established systems to mitigate those risks.
Plans for the future
The business plan sets out the strategic priorities for the next 3 years. There are four main strategic priorities:
Resilience : manage operational and financial risk across the service key areas being. Strong and effective leadership and governance. Gathering and analysis of data to provide key evidence. Robust financial planning
Staff and Service Development . Key development being to diversify income streams and pilot new ways of working in new areas of work, such as health services. Also to expand volunteer roles and to implement a service improvement plan with a focus on increased access using technology.
Partnership and Sustainable Working for Growth . The key areas being to develop our role in the Advice Providers Network. Develop more robust referral mechanisms. Use our intelligence and data to influence and inform policy decisions locally.
Research, Campaigns and Community Engagement.
The key areas being to engage with people in Sandwell who have not yet engaged with us, to develop new markets around young people and people over 65. We also want to understand what our clients struggle with and where services could be improved or provided to meet their needs, for this priority we will speak up for clients where they don’t yet have a voice.
In the immediate 12 months we specifically aim to:
Maintain funding levels from existing sources
Diversify funding streams
Increase access to advice and support through digital channels 4. Diversify volunteer roles within the organisatiion
In terms of diversification and growth and development, we are exploring a merger with another local Citizens Advice. This is planned for 2020.
Implement Stand Up For Equality
Increase offer in health and social care sector 7. Improve customer care and service
Invest in training for staff
Nature of governing document
The charity is constituted as a company limited by guarantee and is governed by its Memorandum and Articles of Association. The Trustees, who are also the directors for the purpose of company law, who served during the year are showing on the legal and administration page. None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
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:
The Board reviews its skills and diversity regularly. An annual appraisal of the board takes place and the Board identifies skills gaps and attempts to recruit to fill these. The Board also looks at the make-up of the Board in terms of diversity of age, gender, race and disability and also in terms of the demography of the local population, having done this an analysis of the gap is undertaken and recruitment takes place in an attempt to fill gaps. Trustee positions are advertised locally and on the national website and are recruited through application and interview. New Trustees can be co-opted onto the Board until the AGM where they are voted on to join the Board fully.
Organisational Structure
The charity is organised so that the trustees meet regularly to manage its affairs. Full board meetings are now being held bi-monthly with additional meetings if required. The board comprises of three schedules of members as follows:
Schedule 1.
Elected members (appointed by the members at the AGM)
Schedule 2.
Nominated by a member organisation
Schedule 3.
Co-opted members
The organisation gives advice to the public from branches at West Bromwich, Smethwick, Oldbury, Tipton, Cradley Heath and Wednesbury. Advisers are also located at Sandwell Council Housing.
Department. Advice is also offered via telephone, home visits and various outreach sites such as Children's Centres, Food Banks and Supported Housing.
The company is run by the Trustee Board with day to day responsibility for the day to day running of the organisation delegated to the Chief Executive Vicki Fitzgerald.
Each trustee goes through an induction process in the role and the organisation.
Restrictions and Investment powers
The Memorandum and Articles of Association authorises the charity to receive income by way of donations, gifts and grants, provided that it does not undertake any permanent trading activities in raising funds for its primary objectives.
The Memorandum also authorises investment of surplus monies not immediately required subject to conditions and consents imposed or required by law.
Related parties
As with all other Citizens Advice organisations, the charity is connected with its National Association who are themselves a charity registered under Number 279057 operating from 3rd Floor North, 200 Aldersgate, London EC1A 4HD Payments have been made throughout the year to the National Association amounting to £11,363.35 in respect of insurance, subscriptions, training services, AGM and Sundry stationery.
The trustees, who are also the directors of Citizens Advice Sandwell & Walsall 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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent; and
- 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 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.
In accordance with the company's articles, a resolution proposing that CK Audit be reappointed as auditor of the company will be put at a General Meeting.
On 5 October 2020, the company’s auditors, CK, transferred their business to CKCA Limited, a company incorporated in England and Wales. In accordance with section 1216(5) of the Companies Act 2006, the directors consent to treating the appointment of CK as extending to CKCA Limited with effect from 5 October 2020.
CKCA Limited will operate under the name CK Audit, which was previously used by CK.
The trustees' r eport was approved by the Board of Trustees.
Opinion
We have audited the financial statements of Citizens Advice Sandwell & Walsall Limited (the ‘charity’) for the year ended 31 March 2020 which comprise the statement of financial activities, the balance sheet and the notes to the financial statements, including a summary of 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:
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.
the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
In our opinion, based on the work undertaken in the course of our audit:
the information given in the trustees' Report, which includes the d irectors’ r eport prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the d irectors’ r eport included within the trustees' r eport has been prepared in accordance with applicable legal requirements.
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 d irectors’ r eport included within the trustees' r eport.
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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit; or
the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees' r eport and from the requirement to prepare a s trategic r eport.
As explained more fully in the s tatement of trustees' r esponsibilities, 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.
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.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://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 auditors' 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.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Citizens Advice Sandwell & Walsall Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 22 Lombard Street, West Bromwich, West Midlands, B70 8RT.
The financial statements have been prepared in accordance with the charity's 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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts 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.
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.
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.
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.
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probably that a settlement will be required and the amount of the obligation can be measured reliably.
Expenditure on charitable activities includes the direct costs undertaken to further the purposes of the charity and their associated support costs.
Support costs are those functions that assist the work of the charity but do not directly relate to charitable activities. These costs include back office costs, finance, personnel, payroll and governance costs.
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:
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 net income/(expenditure) for the year.
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 ) .
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.
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, 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.
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 p aymen ts 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.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
Determine the basis of allocation of support costs between restricted and unrestricted funds.
Tangible fixed assets are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of these assets are assessed annually and may vary depending on a number of factors. In assessing asset lives, factors such as life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as the remaining life of the asset and projected disposal values.
At each reporting date, trade debtors are assessed for recoverability. If there is any evidence of impairment, the carrying amount of the debtor is reduced to its recoverable amount. The impairment loss is recognised immediately in the income statement.
Provision of advocacy, advice and information
Rent, rates and power
Other staff costs
Printing, postage and stationery
Telecommunications
Legal and professional costs
Office equipment costs
Advertising
Repairs and maintenance
Cleaning, sundries and refreshments
Rent, rates and power
Insurance
Repairs and maintenance
Printing, postage & stationary
Telecommunications
Other staff costs
Training
Sundries
Office equipment costs
Other Governance costs
Governance costs includes payments to the auditors of £ 6,480 (2019- £5 , 760 ) for audit fees.
The average monthly number of employees during the year was:
Unrestricted funds
Restricted funds
Unrestricted funds
Restricted funds
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
In October 2020, the charity merged with Walsall Citizens Advice Bureau. Walsall Citizens Advice Bureau's activities and net assets at the date of merger will be incorporated into the newly named organisation Citizens Advice Sandwell & Walsall Limited in the financial year to 31st March 2021.
There were no disclosable related party transactions during the year (2019 - none).
The remuneration of key management personnel is as follows.