Surrey Welfare Rights Unit - Charities report - 22.2

REGISTERED COMPANY NUMBER: 03335128 (England and Wales)

REGISTERED CHARITY NUMBER: 1062826

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

FOR

SURREY WELFARE RIGHTS UNIT

Page

Report of the Trustees

1

to

5

Independent Examiner's Report

6

Statement of Financial Activities

7

Statement of Financial Position

8

to

9

Notes to the Financial Statements

10

to

17

The Trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2022. The Trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

Objectives

Surrey Welfare Rights Unit exists to provide a welfare rights advice service within the county of Surrey and surrounding area. The service is accessed by voluntary and statutory sector professionals, who in most cases, are the first point of contact for clients needing advice.

The Unit provides an independent and confidential service. This independent status allows membership of Citizens Advice (the operating name of the National Association of Citizens Advice Bureaux) and the Unit abides by the Aims and Principles of the Citizens Advice service. This also allows for flexibility to develop and change and gives the freedom to benefit from joint working projects. Furthermore, independent charitable status gives the Board of Trustees the power to seek alternative sources of funding to protect the level of service for the future. This will ensure that the range of welfare rights services can be developed and improved for the future.

The core tasks of the service are:

- To provide an advice line for the use of the professional staff from referral groups;

- To provide training courses on welfare benefits for, amongst others, local Citizens Advice, statutory and voluntary organisations;

- Influence on the development of social policies and services and to ensure individuals do not suffer through a lack of knowledge or an inability to express their needs effectively;

- To produce information and publicity on welfare rights issues for both professional staff and, when relevant, the people of Surrey;

- To promote the take-up of welfare benefits within the County especially among the frail and vulnerable;

- To provide a source of expertise on Community Care issues in Surrey;

- To take on a limited amount of casework as appropriate and provide Tribunal representation in complex cases; and

- To be a focal point of welfare rights work within Surrey through support groups, seminars and informal talks, Social Policy work and networking.

Charitable Activities

The 2021/22 year at the Unit continued to be impacted by Covid. We planned a return to the Woking office during Autumn, which turned out to be short-lived when working from home was reintroduced due to the new wave of infection. Throughout the year the Unit continued to develop its e-training programme, and we became more proficient on both design and delivery. The advantages of e-training are that access to courses is greatly improved, and costs for both the Unit and delegates are reduced. Thankfully our training income partly recovered from its 2020/21 downturn.

For this year, our reserves complied with our Reserves Policy. We were able to access several new grants; two borough grants, Guildford and Reigate and Banstead Councils. We also secured a small Awards for All Lottery grant to help fund additional training courses.

Surrey County Council, in partnership with its Better Care Fund health partners, continues to provide financial support for the Unit, recognising the quality and cost effectiveness of work undertaken by the Unit. The Directors are very grateful for this support, and the funding provided by some of the other Boroughs and District Councils across the County. We delivered services for the final year of our Carers contract, which we have held since 2012. We are grateful to the County Council and health partners for continuing with this funding, which is now part of our core grant.

Apart from grant funding, we generated our own income streams from training courses, consultancy and subscriptions. Over 50 local organisations continued to subscribe to the Unit's services, and in particular, our advice support on individual complex benefit queries.

We continue to hold 100% passes in all areas of our Citizens Advice Performance Quality Framework, including financial management and governance. Our two Advice Quality Standards (AQS) Quality Marks in Casework and Telephone Support were also renewed at the end of 2021.

There is more detail on our activities during 2021/22 in our Impact Report which is available on our website, www.swru.org

Public benefit

The Trustees have paid due regard to the Charity Commission's guidance on public benefit in deciding the activities undertaken by the Unit during the year. The Trustees are satisfied that the information provided in the report and accounts meets the public benefit reporting requirements.

The Trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

FINANCIAL REVIEW

Financial position

Incoming resources in the year were £195,566 (2021: £205,506). A deficit of £15,177 was made in the year (2021: surplus £3,156). At 31 March 2022 total reserves were £183,427 (2021: £198,604) of which £113,859 represented unrestricted general funds (2021: £117,261).

We had a relatively difficult year and incurred a moderate deficit for the year. Our subscription income showed a small increase to the previous years. The core grants remained at a similar level from previous years. Training income was up significantly on the previous financial year to levels approaching pre-Covid. However, the Covid related schemes, which the Unit benefited from in 2020/21 such as the Lottery and Help to Claim funding financed through Citizens Advice (BEIS) came to an end.

The projected budget at the start of the 2021/22 financial year showed a substantial deficit. As additional income was identified the Unit incurred an improved but still moderate deficit. We can absorb this due to our strong reserves.

Principal funding sources

The Trustees extend their gratitude to Surrey County Council, Surrey Heartlands and partners in Surrey NHS and those Borough and District Councils who continued to support the core operating capacity of the charity.

We would particularly like to thank Woking Borough Council who provide premises at no financial cost to the charity except for charges for utility and other office services.

The charity did not have any borrowings from either providers of funding or other sources at the statement of financial position date.

Reserves policy

The Trustees have forecast the level of free reserves (that is those funds not tied up in fixed assets, and designated and restricted funds) the Charity will require to sustain its operations. The Trustees consider that the most appropriate level of free reserves at 31 March 2022 is a minimum of six months' running costs. Whilst the current level of reserves may prove sufficient, it is the Trustees' view that it is prudent to ensure that there are sufficient free reserves to provide financial flexibility for future years and that identified needs in the County can continue to be adequately resourced.

The Trustees have recognised that the budgeted expenditure for the forthcoming year significantly exceeds agreed sources of income. Although efforts will be made to secure additional funding, the current free reserves will be used if necessary to support the work of the Unit. The Trustees are planning a longer-term strategy to avoid ongoing reliance on dwindling reserves.

When considering the level of free reserves the Trustees have considered the Charity Commission document "Charity reserves: building resilience (CC19)" and also the House of Commons Public Administration and Constitutional Affairs Committee report "The collapse of Kids Company: lessons for charity trustees, et al". It is recognised that by far the greater part of the Charity's activity and expenditure is of an "essential" rather than of a "discretionary" nature. This requires a greater degree of financial resilience than for many other charities. The Trustees are also aware that no service level or contracts, are in place for more than one year and income that might be considered "core" is in any case insufficient to provide a basic service to the community and reliance has to be placed on fund raising and the securing of project income that can share the Charity's fixed costs.

The reasons for holding particular reserves are outlined in note 14.

Funds in deficit

No funds were in deficit at the statement of financial position date.

FUTURE PLANS

We are seeing a steady rise in Universal Credit queries, and the Government has just started its two year "managed migration" of current legacy benefit households, onto Universal Credit. Although partly digitalized, we are seeing flaws in the decision making and processing of Universal Credit, so we are preparing for even higher numbers, especially when long-term ill or disabled people are affected, as well as Carers and single-parent households.

We are pleased to be able to support local Citizens Advice services delivering the "No-one left behind" benefits and debt project during the coming year, and are grateful to the County Council for funding additional resource at the Unit so we can deliver new training, and provide support on complex cases. The cost of living crisis, which still has not yet reached its peak, is front and centre of our focus for the coming months and years.

In addition to our core services, we will be completing our Awards for All funded training programme. Also, a new project worker will be starting in June as a Parent and Carer Benefits Adviser. This project, initially for one year, is funded by the Better Care Fund, and will specifically focus on providing support to Carers who have a child of transition age ie: 14 - 25 years old.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Surrey Welfare Rights Unit is a registered charity and a company limited by guarantee. The maximum liability of each member is limited to £1. At 31 March 2022 the company had 7 members (2021: 10). Surrey Welfare Rights Unit is governed by a Memorandum and Articles of Association as amended in 1999, 2005, 2011 and 2019. Surrey Welfare Rights Unit was incorporated as a company limited by guarantee on 18 March 1997. The charity commenced operations on 12 June 1997.

Recruitment and appointment of new Trustees

The Trustees have suitable policies to ensure the Board has adequate representation. They identify any need to recruit and what competences, backgrounds, personal or professional, are preferred so that the Unit's governance reflects the communities it serves. The Board takes account of equality and diversity issues and recognises that these rights are critical to the Unit's credibility and enhances the Unit's profile with stakeholders, funders and campaigners.

Induction and training of new Trustees

Newly appointed Trustees are provided with a comprehensive induction to Surrey Welfare Rights Unit through the provision of training courses and mentoring by established Trustees.

Organisational structure

A Trustee Board governs Surrey Welfare Rights Unit. The Board 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 Surrey Welfare Rights Unit and for ensuring that the charity satisfies its legal and contractual obligations. Trustees meet as a minimum quarterly and delegate the day-to-day operation of the organisation to senior management. The Trustee Board is independent from management. A register of members' interests is maintained at the registered office and is available to the public.

The Trustee Board regularly conducts internal skills audits, and annually reviews its performance. It is independently assessed by Citizens Advice using a comprehensive Performance Quality Framework that looks at areas of governance such as finance, strategic business planning and partnership working.

Internal control

The Board oversees the information security of all personal information of our clients, staff, funders and strategic partners that is processed. The Unit holds joint responsibility for client data that is held in our case management system, with the national Citizens Advice service. An information assurance management team exists to ensure the confidentiality, integrity and availability of all personal and sensitive data is maintained to a level which is compliant with the requirements the General Data Protection Regulation and Data Protection Act 2018.

Register of interests

The Unit holds a register of interests for all Trustees. This is referred to and checked at each Board Meeting. During the year there were no declarations that impaired or conflicted with any Board decisions taken.

Related parties

Surrey Welfare Rights Unit is a member of Citizens Advice, the operating name of the National Association of Citizens Advice Bureaux, 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 Surrey Welfare Rights Unit in order to fulfil its charitable objects and comply with the national membership requirements.

The charity also co-operates and liaises with a number of other advisory services, local charities and council 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.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

03335128 (England and Wales)

Registered Charity number

1062826

Registered office

Unit 14a

Monument Way Depot

Monument Way East

Woking

GU21 5LY

Trustees

Anne Carroll Haigh (resigned as Chair 31.01.22)

David John Booth Treasurer (resigned 13.7.21)

Alison Clark Company Secretary (resigned 11.10.21)

Jane Vivien Bourgeois (appointed as Chair 31.01.2022)

Roger Stewart Hurcombe

John David Fairley

Sophia Platts (resigned 11.10.21)

Anne Mary Pirie

Suja Sankarasubramanian

Stephen John O'Sullivan Treasurer (appointed 17.05.21)

Keith David O'Neill (appointed 25.4.22)

Daniella Jordan (appointed 25.4.22)

Independent Examiner

Romit Basu FCA

DSK Partners LLP

D S House

306 High Street

Croydon

Surrey

CR0 1NG

Bank

CAF Bank Ltd.

25 Kings Hill Avenue

Kings Hill

West Malling

Kent

ME19 4JQ

Chief Officer

Maria Zealey

Approved by order of the Board of Trustees on 17 October 2022 and signed on its behalf by:

Jane Vivien Bourgeois - Trustee

Independent examiner's report to the trustees of Surrey Welfare Rights Unit ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2022.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors 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

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:

1.	accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

2.	the accounts do not accord with those records; or

3.	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

4.

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.

Romit Basu FCA

DSK Partners LLP

D S House

306 High Street

Croydon

Surrey

CR0 1NG

17 October 2022

2022

2021

Unrestricted

Restricted

Total

Total

funds

fund

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

1,210

-

1,210

651

Charitable activities

Charitable

43,604

-

43,604

47,825

Grants

91,512

58,134

149,646

154,572

Investment income

3

1,106

-

1,106

2,458

Total

137,432

58,134

195,566

205,506

EXPENDITURE ON

Charitable activities

5

Charitable

150,647

55,751

206,398

198,059

Other

3,237

1,108

4,345

4,291

Total

153,884

56,859

210,743

202,350

NET INCOME/(EXPENDITURE)

(16,452

)

1,275

(15,177

)

3,156

Transfers between funds

14

(217

)

217

-

-

Net movement in funds

(16,669

)

1,492

(15,177

)

3,156

RECONCILIATION OF FUNDS

Total funds brought forward

196,266

2,338

198,604

195,448

TOTAL FUNDS CARRIED FORWARD

179,597

3,830

183,427

198,604

2022

2021

Unrestricted

Restricted

Total

Total

funds

fund

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

11

-

-

-

1,416

CURRENT ASSETS

Debtors

12

24,540

-

24,540

15,697

Cash at bank

248,985

3,830

252,815

233,063

273,525

3,830

277,355

248,760

CREDITORS

Amounts falling due within one year

13

(93,928

)

-

(93,928

)

(51,572

)

NET CURRENT ASSETS

179,597

3,830

183,427

197,188

TOTAL ASSETS LESS CURRENT LIABILITIES

179,597

3,830

183,427

198,604

NET ASSETS

179,597

3,830

183,427

198,604

FUNDS

14

Unrestricted funds:

General funds

113,859

117,261

Designated funds

65,738

79,005

179,597

196,266

Restricted funds:

Restricted funds

3,830

2,338

TOTAL FUNDS

183,427

198,604

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2022 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 17 October 2022 and were signed on its behalf by:

Jane Vivien Bourgeois - Trustee

1.	STATUTORY INFORMATION

Surrey Welfare Rights Unit is a company limited by guarantee, registered in England and Wales. The company's registered number and registered office address can be found within the report of the Trustees section.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Computer equipment

-

Straight line over 3 years

Fixed assets are included at cost and only items in excess of £500 are capitalised.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the Trustees.

Restricted funds

Income received for the restricted purposes is included in a separate restricted fund against which appropriate expenditure is allocated.

Designated funds

The Trustees allocate designated funds out of unrestricted funds for specific purposes. The use of such funds is at the Trustees' discretion.

Pension costs and other post-retirement benefits

The charity operates a defined contribution group personal pension plan for its employees. Payments are charged to the income and expenditure account in the period in which they are incurred.

Leases

Rental costs under operating leases are charged to the statement of financial activities in equal amounts over the period of the leases.

3.	INVESTMENT INCOME

2022

2021

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

£

£

£

£

Interest receivable

1,106

-

1,106

2,458

4.	INCOME FROM CHARITABLE ACTIVITIES

Unrestricted

Restricted

Total

Total

Funds

Funds

2022

2021

£

£

£

£

Grant Income

Surrey County Council

70,112

51,750

121,862

119,736

Surrey Borough and District Councils

21,400

-

21,400

18,500

Grants - COVID-19 Cit A BEIS

-

-

2,350

Grants - COVID-19 Lottery

-

-

8,986

Grants other

-

6,384

6,384

5,000

91,512

58,134

149,646

154,572

Subscription Income

22,499

-

22,499

20,765

Training Income

17,295

-

17,295

6,915

Rent in Kind

3,300

-

3,300

3,300

Consultancy

510

-

510

450

Project Income - Other

-

-

-

16,395

43,604

-

43,604

47,825

-------------

-----------

-------------

--------------

135,116

58,134

193,250

202,397

=======

======

=======

=======

Income from charitable activities include rent benefit of £3,300 (2021: £3,300).

5.	CHARITABLE ACTIVITIES EXPENDITURE

2022

2021

£

£

Staff costs

189,075

172,174

Depreciation of computer equipment

1,416

2,218

Books & publications

3,199

2,351

Information systems (Subscriptions)

2,234

2,234

Computer systems

2,886

3,319

Insurance

1,986

1,742

Office expenses

721

632

Travel expenses

9

-

Stationery

-

181

Photocopying

27

55

Postage

737

1,048

Printing

315

1,063

Staff development and recruitment costs

939

295

Telephone

2,041

2,177

Training programme

606

622

Website costs

209

209

Project cost- Help to Claim

-

3,000

COVID-19 direct expenses

-

4,739

-------------

-------------

206,398

198,059

=======

=======

Included in Travel expenses is £Nil paid to Trustees (2021: £Nil).

6.	SUPPORT COSTS

Other resources expended:

2022

2021

£

£

Legal & professional fees

13

13

Independent Examination fee

840

840

Finance costs

192

138

Other overheads costs

3,300

3,300

----------

---------

4,345

4,291

=====

======

7.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2022

2021

£

£

Depreciation - owned assets

1,416

2,218

Independent Examiner's Remuneration

840

840

8.	TRUSTEES' REMUNERATION AND BENEFITS

There were no Trustees' remuneration or other benefits for the year ended 31 March 2022 nor for the year ended 31 March 2021.

Trustees' expenses

Trustees' expenses for the year ended 31 March 2022 were £Nil and for the year ended 31 March 2021 were £Nil.

9.	STAFF COSTS

The average monthly number of employees during the year was as follows:

2022

2021

Employees

7

7

No employees received emoluments in excess of £60,000.

10.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

funds

fund

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

651

-

651

Charitable activities

Charitable

31,430

16,395

47,825

Grants

92,236

62,336

154,572

Investment income

2,458

-

2,458

Total

126,775

78,731

205,506

EXPENDITURE ON

Charitable activities

Charitable

120,043

78,016

198,059

Other

3,929

362

4,291

Total

123,972

78,378

202,350

NET INCOME

2,803

353

3,156

Transfers between funds

(305

)

305

-

Net movement in funds

2,498

658

3,156

RECONCILIATION OF FUNDS

Total funds brought forward

193,768

1,680

195,448

TOTAL FUNDS CARRIED FORWARD

196,266

2,338

198,604

11.	TANGIBLE FIXED ASSETS

Computer

equipment

£

COST

At 1 April 2021 and 31 March 2022

18,543

DEPRECIATION

At 1 April 2021

17,127

Charge for year

1,416

At 31 March 2022

18,543

NET BOOK VALUE

At 31 March 2022

-

At 31 March 2021

1,416

12.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

24,540

15,697

13.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade creditors

476

265

Payroll taxes

3,509

7,053

Deferred income

73,660

26,715

Accruals

16,283

17,539

93,928

51,572

14.	MOVEMENT IN FUNDS

Net

Transfers

movement

between

At

At 1.4.21

in funds

funds

31.3.22

£

£

£

£

Unrestricted funds

General funds

117,261

(16,452

)

13,050

113,859

Designated funds

79,005

-

(13,267

)

65,738

196,266

(16,452

)

(217

)

179,597

Restricted funds

Restricted funds

2,338

1,275

217

3,830

TOTAL FUNDS

198,604

(15,177

)

-

183,427

Net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General funds

137,432

(153,884

)

(16,452

)

Restricted funds

Restricted funds

58,134

(56,859

)

1,275

TOTAL FUNDS

195,566

(210,743

)

(15,177

)