KNOWSLEY_DISTRICT_CITIZEN - Accounts

The trustees present their annual report and financial statements for the year ended 31 March 2022.

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

The charity’s purposes, as set out in the objects contained in the Company’s Memorandum of Association, are to promote any charitable purpose for the benefit of the whole community of Knowsley (“the area of benefit”) by the advancement of education, the protection of health and the relief of poverty, sickness and distress.

The charity’s objects are defined as above. Our aims are focused on:

• To provide the advice people need for the problems they face, and

• To improve the policies and practices that affect people’s lives

Our service provides free, independent, confidential and impartial advice to everyone on their rights and responsibilities. We value diversity, promote equality and challenge discrimination.

The charity has developed its own Mission Statement to reflect more accurately its purpose and role:

Citizens Advice Knowsley’s vision is to improve the lives of Knowsley residents through advice, empowerment and volunteering. Our values are to focus on clients and quality of advice, achieve results, continuously improve, promote equality and fairness, value each other and work together.

Ensuring our work delivers our aims

We review our aims, objectives and activities each year. The annual review seeks to examine our achievements and outcome. Together with the success of individual key projects and the benefits that have been born from them. In carrying out the review we are ensuring that that our aims, objectives and activities are in line with our stated purpose.

Our main objectives for the year have been developing our service so that it really meets the needs of the clients we are trying to support. Key activities have included:

• Providing a seamless customer journey, enabling clients to receive help that best suits their demands

• Continue to be advocates for the residents of Knowsley, providing a voice for those who cannot be heard

• Make our services accessible to all areas of the community

• Provide a healthy working environment and invest in the development of staff and volunteers

• Ensuring that a service has been provided in accordance with business continuity plans

Public benefit

Our main activities and who we try to help are described above. All our charitable activities focus on providing the advice people need for the problems they face and are undertaken specifically to provide public benefit. The board of trustees have had due regard to the Charity Commission guidance on public benefit and have complied with the duty in section 4 of the Charities Act 2011.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Responsibility towards the environment

Knowsley District Citizens Advice Bureau aims to minimise its impact on the environment and has implemented an organisational environmental policy to ensure that all activities place an increased emphasis on the environmental impact of our actions.

During this year, we assisted 3296 unique clients with 24,412 issues. Welfare Benefits accounted for 45% of all issues with money advice accounting for 43% of issues. It was noted during this period that the complexity of issues deal with on behalf of clients has increased in the area of debt, money advice and financial capability.

Through this year, we continued to deliver services through e-mail and telephone with staff working remotely and at our advice locations.

• We supported paid staff and volunteers to work from home by investing in the relevant technology.

• We remained committed to supporting the twin aims of the Citizens Advice Service and ensuring that our work contributes to the strategic aims of Knowsley Council and other funders.

• We continued to lead Greater Merseyside Money Advice Partnership via funding from the Money and Pensions Service.

• We participated in research and campaigns work on behalf of the residents of Knowsley.

• We provided general help outreach work at Stockbridge Village via funding from ForHousing.

• We provided Employability support through European Social Fund New Horizons project.

• We provided financial capability advice to improve mental health of clients through the Better Mental Health Fund.

• We helped clients recovering from Covid-19 after effects through funding from the Knowsley Better Together Fund.

The charity recorded a surplus of £75,993 for the year (2021 – £28,053). This has stabilised reserves after a period of deficit expenditure and allowed trustees to implement a 3-year service strategy to support Knowsley residents.

During the 2021/22 year, Citizens Advice Knowsley received additional funds through the Knowsley Better Together Fund to assist Knowsley residents affected by the Covid-19 pandemic with Welfare Benefits and General advice, in addition to funding for better mental health to provide financial capability work.

This additional funding has allowed trustees to implement a 3-year strategy to enable face-to-face and outreach services to develop in order to reach all sectors of the Knowsley community.

We also surrendered the lease on premises in Halewood in order to focus on more cost-effective, community-based services.

Trustees are aware that there will be increased pressure on resources and are working with senior management to secure new and existing funding to enable Citizens Advice Knowsley to provide a much needed service.

Reserves policy

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to six months, expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

Risk management

Systems and procedures have been established to identify, monitor and manage the risks that Knowsley Citizens Advice faces. Trustees and the senior management team periodically review and update risks and mitigating actions.

Citizens Advice Knowsley operates under a risk management strategy agreed by trustees and periodically reviews and updates a risk register to reflect the current risks we are exposed to with a view to monitoring and mitigating major risks.

The Board ideally would like to be able to call on a 6-month running costs in the event of the organisation ceasing operations. As required in its Memorandum paragraph 3.19, the organisation has the power to invest and deposit funds in any lawful manner whilst having regard to the suitability of investments and the need for diversification.

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

The charity is a company limited by guarantee (3108844) and is governed by its Memorandum and Articles of Association, as amended by special resolution dated 22 July 2020. The registered name of the charity is Knowsley District Citizens Advice Bureau (1049996) and from January 2004, the charity has used the operating name of Citizens Advice Knowsley.

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 signing were:

Trustees are recruited in line with the terms laid out in the Bureau's Articles of Association. A term of office is 3 years and trustees may be re-elected.

Knowsley Metropolitan Borough Council annually nominates an elected member to the Board of Trustees.

Cllr L Mooney                

Trustees can be elected at the Annual General Meeting, nominated by member organisations or co-opted by the Board, provided that the total number of co-opted and nominated trustees does not exceed one third of the total number of trustees.

New trustees meet with the Chair and Chief Officer for an induction session and all trustees undertake ongoing training and development as appropriate to their role.

The Citizens Advice internet site www.bmis.org.uk contains designated pages to support trustees in their roles

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 are covered by trustee indemnity insurance.

Organisational structure

Citizens Advice Knowsley 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.

Knowsley District Citizens Advice Bureau is governed by the Board of Trustees who:

• Set the policy of the charity

• Are involved in determining corporate strategy, including setting key strategic objectives

• Make major decisions about the future of finances

• Set a framework for human resource policy

Responsibility for day to day management matters and implementation of policy is delegated to the Chief Officer, within a clearly understood framework for strategic control.

The following Bureau personnel attend trustee meetings in a non-voting capacity:

Brian Gouldson, Chief Officer

Annmarie Bradley, Office Administrator

Trustee minutes, excluding confidential matters, are circulated to all Bureau Advice sites for the attention of all volunteers and employees and are sent to Citizens Advice.

Contribution of Volunteers and Paid Staff

The charity’s success could not have been achieved without the hard work and dedication of volunteers and staff. The Trustee Board and senior management recognise the tremendous contribution made by the charity’s volunteers in advising the public and administering the service without which the service could not operate.

Volunteers represent the indispensable core of the service for without them there would not be a Citizens Advice service. Their value is inadequately expressed in monetary terms. Indeed, volunteers bring many skills to the service and very often the experience gained helps individuals return to full employment.

People in the Bureau:

Volunteers contributed the equivalent to 2.29 FTE members of staff during the year. This equates to £41,261.22 based on a paid staff equivalent receiving £9.90 per hour.

All Trustees/Directors are volunteers

Equal opportunities

Knowsley District Citizens Advice Bureau recognises the positive value of diversity promotes equality and challenges discrimination. The charity welcomes volunteers and employees from all parts of the community, particularly under-represented groups.

We support the Citizens Advice equality, diversity and inclusion goals and have incorporated these in with all aspects of business planning.

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

So far as the trustees are aware, there is no relevant audit information of which the charity's auditors are unaware. Additionally, the trustees have taken all necessary steps that they ought to have taken as trustees in order to make themselves aware of all relevant audit information and to establish that the charity's auditors are aware of that information.

This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the companies act 2006.

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

The trustees, who are also the directors of Knowsley District Citizens Advice Bureau 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;

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; 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.

Opinion

We have audited the financial statements of Knowsley District Citizens Advice Bureau (the ‘charity’) for the year ended 31 March 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the charitable company's affairs as at 31 March 2022 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

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

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

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

Other information

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

the information given in the trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and

the directors' report included within the trustees' report 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 directors' report included within the trustees' report.

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

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' report and from the requirement to prepare a strategic report.

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

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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

Comparative information

The corresponding figures presented in the financial statements were unaudited.

This report is made solely to the company’s members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

designated

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

designated

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

Knowsley District Citizens Advice Bureau is a private company limited by guarantee incorporated in England and Wales. The registered office is 142 Cherryfield Drive, Kirkby, Merseyside, L32 8RX.

The accounts have been prepared in accordance 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). The charity is a Public Benefit Entity as defined by FRS 102.

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

The accounts have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.

At the time of approving the accounts, 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 accounts.

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by trustees for a particular purpose. The aim and use of the designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Income from donations and grants, including capital grants, is included in income when these are receivable, except as follows:

• When donors specify that donations and grants given to the charity must be used in future accounting periods, the income is deferred until those periods.

• When donors impose conditions which have to be fulfilled before the charity becomes entitled to use such income, the income is deferred and not included until the preconditions for use have been met.

• When donors specify that donations and grants, including capital grants, are for particular restricted purposes, which do not amount to preconditions regarding entitlement, this income is included as restricted funds when receivable.

Voluntary income includes discretionary grants for projects, goods and services where no service agreement or contract exists.

Other grants and contracts, which have particular service requirements are included in the statement of financial activities under the heading income from charitable activities.

Interest is included when receivable by the charity.

Expenditure reflects all amounts paid and accrued during the year. All costs are allocated between the expenditure categories on a basis designed to reflect the use of the resource. Costs relating to a particular project are allocated directly, others are apportioned on an appropriate basis. Staff costs are apportioned between projects on the basis of an assessment of the time spent by individual employees.

Charitable expenditure

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs

These represent costs associated with meeting the constitutional and statutory requirements of the charity and include the independent examination fees and costs linked to the strategic management of the charity.

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

All assets costing more than £1,000 are capitalised at cost.

Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

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

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.

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 receipts 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.

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

Taxation

The charity benefits from various exemptions from taxation afforded by tax legislation and is not liable to corporation tax on income or gains falling within those exemptions.

The charity is not able to recover Value Added Tax. Expenditure is recorded in the accounts inclusive of VAT.

Pensions

The charity operates a defined contribution scheme for employees. Contributions are charged to the Statement of Financial Activities in the period to which they relate.

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.

Office expenses

Travel and subsistence

Sundry and cleaning

Office costs

Staff and volunteer

Other costs

Support costs represent the overheads for running the charity and where directly attributable, costs have been allocated to the relevant headings.

The recharges have been calculated as a pro-rata figure based on the number of FTE posts allocated to each funding stream.

Governance costs includes payments to the auditor of £4,500 for the audit and £3,250 for accountancy fees (2021- £2,300 payable for the independent examination and £2,488 for accountancy fees).

None of the trustees (or any persons connected with them) received any remuneration during the year. During the year one trustee was reimbursed £68 for expenses incurred (2021- £75).

The average monthly number of employees during the year was:

The average number of employees shown above is based on actual employee numbers.

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

The charge to the statement of financial activities in respect of defined contribution schemes was £46,296 (2021 - £40,357).

These are unrestricted funds which are material to the charity's activities made up as follows:

Transfer

Expenditure

Expenditure

The above designated funds have been set aside to carry out future building works at our new Kirkby and Huyton offices. The balance was reviewed by the trustees to more accurately reflect the position held at 31 March 2022. The leasehold improvements designated fund represents the net book value of the assets capitalised within 2019.

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:

The remuneration of key management personnel is as follows.

No guarantees have been given or received.

There are no other related party transactions.

The charity had no debt during the year.

Knowsley District Citizens Advice Bureau Limited is incorporated under the Companies Act 2006 as a company limited by guarantee. The liability of the members is limited to £1.