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REGISTERED COMPANY NUMBER: 03174842 (England and Wales)

REGISTERED CHARITY NUMBER: 1057195















Report of the Trustees and

Financial Statements for the Year Ended 31 March 2023

for


Citizens Advice Kensington and Chelsea



Citizens Advice Kensington and Chelsea








Contents of the Financial Statements

for the Year Ended 31 March 2023






Page




Report of the Trustees  

1


to


6



Report of the Independent Auditors  

7


to


9



Statement of Financial Activities  

10




Statement of Financial Position  

11




Statement of Cash Flows  

12




Notes to the Statement of Cash Flows  

13




Notes to the Financial Statements  

14


to


24



Citizens Advice Kensington and Chelsea (Registered number: 03174842)



Report of the Trustees

for the Year Ended 31 March 2023



1. 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 2023. 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).


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.


Reference and administrative details

Registered Company number

03174842 (England and Wales)


Registered Charity number

1057195


Registered office

Chelsea Old Town Hall

Kings Road

LONDON

SW3 5EB


Trustees

Cllr D A Schmetterling

Ms C T H Bruce

Cllr I E R Wason (resigned 13.5.22)

Revd Dr M J A Long (resigned 6.6.23)

Mr J N Dudley (resigned 29.11.22)

Ms K G Blagden

Ms J Rhoades

Cllr M Adam (appointed 6.8.22) (resigned 12.7.23)

Cllr M S Bakhtiar (appointed 12.7.23)

Lord R Carnwath (resigned 13.5.22)

Ms S L Dunn

Mr S Jayant

Cllr W Lane (appointed 25.7.22)

Dr A Mfula (appointed 27.11.22)

Dr J Pinto

Ms H R Robinson (resigned 30.4.22)

Ms P Thaxter (resigned 24.5.22)


2. KEY MANAGEMENT PERSONNEL


Chief Executive Officer: Mr William Roberts


Company Secretary: Mr William Roberts


Website Address: https://citizensadvicekc.org.uk


Auditors

Haines Watts Wales LLP, Statutory Auditors

7 Neptune Court

Vanguard Way

Cardiff

CF24 5PJ




Citizens Advice Kensington and Chelsea (Registered number: 03174842)



Report of the Trustees

for the Year Ended 31 March 2023



Reference and administrative details

Bankers

Barclays Bank PLC

137 Ladbroke Grove

Notting Hill

London

W11 1PR


Change of name

The charitable company passed a special resolution on 28 March 2023 changing its name from Kensington and Chelsea Citizens Advice Bureaux Service  to Citizens Advice Kensington and Chelsea.






Citizens Advice Kensington and Chelsea (Registered number: 03174842)



Report of the Trustees

for the Year Ended 31 March 2023


STRUCTURE, GOVERNANCE AND MANAGEMENT


3.   Status - The Citizens Advice Kensington & Chelsea (Charity Registration no: 1057195) is constituted as a company limited by guarantee (Company no: 3174842 incorporated 19 March 1996) and governed during the year by trustees under its memorandum and articles of association.


4.   Trustees and Organisational Structure - Under the Articles of Association adopted on 27 November 2003, there may be between four and sixteen trustees. New Trustees are appointed:


  -


election by members in General Meeting,


  -


by nomination by member organisations and approval by the trustees for the time being,


  -


by co-option by the trustees, for terms of three years.



Trustee members are individuals who are interested in furthering the missions of the charity. Three representative members of the trustees are councillors who represent the Royal Borough of Kensington & Chelsea. The role of trustees is voluntary, and not paid.


5.   Policies and procedures for the induction and training of trustees -The trustees endeavour to identify candidates for trusteeship from various individuals and organisations representative of the community in which the charity operates, particularly those with any of the various skills desirable in a trustee board and makes use of the specialist training courses for trustees provided by the related national charity Citizens Advice.


6.   Decision Making - The trustees oversee appointments of paid staff, grant funding applications, annual financial budgets and accounts, and quarterly financial and operational reports from staff, and any potential issue(s). Day-to-day implementation of decisions and operational management are delegated to the respective managers of the charity. Trustees are responsible for determining the remuneration of key management personnel.


7.   Related Charities and Organisations - The service is a member of Citizens Advice (the operating name of the National Association of Citizens Advice Bureaux) (Charity registration no:279057,of 3rd Floor North, 200 Aldersgate Street, London EC1A 4HD). As such it must conform to the requirements of the organisation's membership scheme, and it is represented within the organisation's democratic structure. The service relies on the organisation for support services such as training of trustees, staff and volunteers, and provision of an information database.


8.   Risk review - The trustees conduct regular reviews of the major external risks, which the charity is exposed to, and systems or best practices have been established to mitigate against those risks. Internal risks are minimised by the implementation of procedures for authorisation of all transactions and projects, to ensure the consistent quality of delivery for all operational and financial activities of the charity. These procedures are reviewed annually to ensure they still meet the updated needs of the charity each year. One note to highlight is that amongst the wide range of existing funders of the charity, some making grants only on an annual basis, means that the service of the charity, in common with many similar voluntary organisations, faces significant risks to external funding. Trustees consider, bearing in mind these risks and the position set out in para's 12 & 13 below, that there should be unrestricted funds neither committed nor invested in fixed assets of £322,000. From April 2024 this figure will reduce to £250,000 and £50,000 will be set aside as designated funds to invest in the development of services and technology.


At 31 March 2023, the free reserves amounted to £384,926 (2022: £243,180). As described in Note 15, the Service is an associate employer in the defined-benefit pension scheme for staff, which was closed to new staff on 1 October 2000 and to any further accrual from 31 March 2008. In common with similar organisations, the Service has arranged for former members of the scheme, as well as any other staff, to join a defined-contribution scheme managed by Scottish Widows.



PUBLIC BENEFIT


9.   Public Benefit - The trustees confirm that they have complied with the duty in Section 4 of the Charities Act 2006 to have due regard to the Charity Commission's general guidance on public benefit, 'charities and public benefit'. The charity's objectives and achievements are set out below.




Citizens Advice Kensington and Chelsea (Registered number: 03174842)



Report of the Trustees

for the Year Ended 31 March 2023



OBJECTIVES AND ACTIVITIES


10.    Objectives - The principal object of the charity is to provide centres for the supply of advice and guidance in furtherance of the advancement of education, the protection of health and the relief of poverty, sickness and distress, for the benefit of the community in Kensington and Chelsea. To this end, the service operates in accordance with the standards necessary for the service to qualify for membership of Citizens Advice (a related charity as described in para. 7 above). The service aims:


  -


To provide the advice people need for the problems they face.


  -


To improve the policies and practices that affect people's lives.


  -


The service is independent and provides free, confidential and impartial advice to everybody regardless of race,

gender, sexuality or disability.



11.   The service monitors its achievement of these objectives by the numbers of advice enquiries it deals with, and the amount of support given to clients at various levels, and particularly in financial terms by the amounts of benefits or judicial or other awards achieved for clients by advice given.


12.   Activities - In furtherance of these objectives, the service aims to provide a regular generalist advice service within the borough, supplemented by additional projects for advice to particular groups or on particular topics identified as needed in the area, and for which funding can be obtained.


13.   The service operates from our registered office at Chelsea Old Town Hall, London SW3 5EB, as well as work being carried out remotely by advisers and volunteers.  We intend to acquire new premises in the North of the borough in 2023. We run an outreach programme 3 days/week at The Kensington and Chelsea Foodbank and one day a week at Bay20 Community Centre. From April 2023 we opened a Help and Advice Hub at the Chelsea Theatre which operates on Tuesdays and for which we issue follow up appointments on Wednesdays. From July 2023 we opened a second Help and Advice Hub at the Kensington Leisure Centre. The Royal Borough of Kensington & Chelsea has approved a grant of £550,000 for FY2023-24 which represents a 0% increase on FY2022-2023 funding. A full commissioning process will take place for this service with Royal Borough of Kensington & Chelsea from September 2023 and will take effect from April 2024 .


In addition the service operates the following special projects:


  -


An advice bureau service in HM Wormwood Scrubs began in 1994. It has largely been funded by City Bridge Trust

and HM Prison Service. Since April 2022, City Bridge Trust and HM Prison Service have not been in a position to

approve any basic grant but the latter continues to offer financial assistance in the form of £10,000 in premises'

costs in kind. Funding from February 2023 to March 2024 has been received from the Kensington and Chelsea

Foundation (£25,000) and The Julia & Hans Rausing Trust (£20,000). Further efforts will continue to secure

funding for 2024/25.  


  -


The Adult Social Care project is funded by the local authority's Social Services Department (Adult Social Care),

which began between 1995 and 2002. Funding for 2023-24 stands at £110,000 (2022.23: £110,000).A full

commissioning process from September 2023 and will take effect from April 2024 .


  -


Grenfell project which commenced in June 2017 to support residents and families affected by the Grenfell Tower

fire tragedy is supported in 2022-23 by Central & North West London NHS Foundation Trust by £98,000 with

matched local authority funding of £100,000. This project will no longer be supported by Central & North West

London NHS Foundation Trust from April 2023.


  -


The Nationally Lottery funding has allowed us to increase the number of volunteers working in the service,

substantially increasing our advice capacity. Funding for 2023-24 stands at £54,029 (2022.23: £52,971).


  -


The Covid Recovery funding, supported by the local authority, enables us to restructure by meeting redundancy

costs and bring in professional support for the process. This funding has now ended. (2022.23: £41,133).


  -


The Food Bank service which commenced in April 2022 is funded by the Trussell Trust under 3-year funding.The

grant for 2023/24 is £42,788 (2022.23: £36,447) to cover four days of advice per week.


  -


The AiCS project commenced in January 2022, under which we receive £18,947/year (2022.23: £4,008) from

RBKC (who have a GLA grant for the project) to provide outreach, currently at K&C Foodbank and Bay20.



14.   Volunteers - The service benefits from time and expertise voluntarily given - however, no financial value is recognised in the financial statements. It also includes the work of the trustees, who are unremunerated, and of volunteer administrative and advice workers. During the year, there was an average of seven full time staff at no cost to the service apart from travel, training and other expenses of £1,340 in 2022-2023. The estimated additional value volunteers bring to the service is £85,333.



Citizens Advice Kensington and Chelsea (Registered number: 03174842)



Report of the Trustees

for the Year Ended 31 March 2023



ACHIEVEMENTS AND PERFORMANCE


15.   Qualitative and quantitative indicators of the numbers and nature of enquiries, and of progress with casework, and numbers of appointments, home visits, representations at panels and tribunals, and of complaints are collated in the form of Service Information which is reported quarterly to the principal funder under the current funding agreement.


FINANCIAL REVIEW


16.   Funders - The service is grateful for the financial support it receives from its various funders, notably the Royal Borough of Kensington & Chelsea - VCS and Community Partnerships, Social Services and Grenfell Departments, National Health Service, Citizens Advice, Kensington & Chelsea Foundation, Campden Charities, HM Prison Service, National Lottery Community Fund, The Trussell Trust and The Julia and Hans Rausing Trust .


17. Financial Position -The statement of financial activities for the year ended 31 March 2023 shows total income of £1,088,141 (2022: £1,372,417) and expenditure of £868,865 (2022: £1,280,343), giving net incoming resources for the year of £219,276 (2022: £92,074) after the defined-benefit pension scheme liability gain of £25,486 (2022: £8,155 gain).


18.   Reserves Policy - Details of fund balances are given in Note 15 to the accounts. Of the total balances, those of restricted funds will be required for ongoing expenditure or adjustment against future grants for restricted projects. The trustees regard the remaining balances of unrestricted funds as free reserves, which amount to £384,926 (2022: £243,180) representing 44% of total expenditure in the year (2022: 19%). These reserves are held as a working balance to smooth any day-to-day and/or project to-project fluctuations in income and expenditure. It also covers separately funded projects, which may have different accounting periods and different timetables for grant instalments. Apart from this reserve, the charity holds no financial assets or investments, and relies entirely on current funding for its activities. With the exception of funding for the special projects listed in para 13 above, and income from referral service work, donations and bank interest, the service is wholly dependent on funding by the local authority.


19.   Going concern - The trustees have undertaken a detailed analysis of the funding impact on its operations and have concluded that there is a reasonable expectation that the charity remains a going concern for the reasons outlined below.


The financial activity and position are outlined in pages 11 & 12.The trustees have assessed the financial position of the charity and would like to conclude that it is well-prepared to meet the liabilities and to manage any identified business and financial risk. The financial position is enhanced by sufficient reserves, positive relationships and feedback received from key funders and a proven ability to secure successful bids for new funding. The financial planning takes into the considerations of current economic climate and any potential impact on charity sources of income and planned expenditures. We acknowledge the pension obligations of charity and have a clear course of actions to reduce the pension deficit over time.




PLANS FOR FUTURE PERIODS


20.  The focus of service development is to significantly extend our reach and accessibility by developing a range of access channels and outreach services.


We have changed our website to include a public access benefits checker and we are developing an interactive, automated 24hour chat facility.


Our intention is to locate services where people already go - particularly those who have not sought advice before or who did not realise they may be able to get help.  We have successful piloted a help and support hub, based on triage and close work with other advice and community support partners.  Building on the learning from this pilot, and in the spirit of continuous learning, we will be seeking additional locations and partners for these weekly drop in services.  We are also aware of the changing needs of our communities, and we will be looking for ways of providing advice outside our current working hours.


We will also continue to work with advice sector partners on seamless referrals, creating single points of access to new cients.




Citizens Advice Kensington and Chelsea (Registered number: 03174842)



Report of the Trustees

for the Year Ended 31 March 2023


We are also aware of the need to grow and develop a workforce of the future. We took on our first paid trainee in 2022 on a year-long contract.  Based on this successful model, we will seek further opportunities to offer this significant and impactful training opportunity to additional candidates in future years.


Statement of trustees' responsibilities

The trustees (who are also the directors of Citizens Advice Kensington and Chelsea for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

-select suitable accounting policies and then apply them consistently;
-observe the methods and principles in the Charity SORP;
-make judgements and estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

-there is no relevant audit information of which the charitable company's auditors are unaware; and
-the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

Auditors

The auditors,  Haines Watts Wales LLP, Statutory Auditors, will be proposed for re-appointment at the forthcoming Annual General Meeting.


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


Approved by order of the board of trustees on 12 October 2023 and signed on its behalf by:






Ms K G Blagden - Trustee


Report of the Independent Auditors to the Members of

Citizens Advice Kensington and Chelsea


Opinion

We have audited the financial statements of Citizens Advice Kensington and Chelsea (the 'charitable company') for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and 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 (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

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 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; and
-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 Auditors' responsibilities for the audit of the financial statements section of our report.  We are independent of the charitable company 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.


Conclusions relating to going concern

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 charitable company'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 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 Report of the Independent Auditors 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 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 the audit:

-

the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-

the Report of the Trustees has been prepared in accordance with applicable legal requirements.


Report of the Independent Auditors to the Members of

Citizens Advice Kensington and Chelsea



Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.


We have nothing to report in respect of the following matters where 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

-

certain disclosures of trustees' remuneration specified by law are not made; or

-

we have not received all the information and explanations we require for our audit; or

-

the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.


Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes 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 charitable company'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 responsibilities for the audit of the financial statements

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 a Report of the Independent Auditors 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:


Our planning procedures identify the legal and regulatory frameworks applicable to the operations and financial statements of the company.  These are reviewed internally with the audit team including relevant industry experience and expectations as well as externally with the client management.  The key laws and regulations we considered in this context were the UK Companies Act 2006, UK GAAP FRS 102 and relevant tax legislation.


Once identified, we assess the risks of material misstatements in relation to the laws and regulations, irregularities, including fraud and adjust our testing accordingly.  Our audit procedures include:


-


Discussing with Management which areas of the business they believe to be more susceptible to fraud, and whether

they have any knowledge or suspicion of fraudulent activities;


-


Obtaining an understanding of the key controls put in place by the company to address risks identified, assessing

the effectiveness of those and discussing how these are maintained and monitored internally;


-


Assessing the risk of management override and review and testing of journal entries made into the accounting

system;


-


Challenging assumptions and judgements made by the company in relation to the significant accounting estimates

employed in the preparation of the financial statements;


-


Discussing with Management the legal and regulatory obligations of the business and whether they have any

knowledge or suspicion of non compliance.



Despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularities likely involve collusion, forgery, intentional misrepresentation, or the override of internal controls.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.


Report of the Independent Auditors to the Members of

Citizens Advice Kensington and Chelsea



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.





Stephen Lucey (Senior Statutory Auditor)

for and on behalf of Haines Watts Wales LLP, Statutory Auditors

7 Neptune Court

Vanguard Way

Cardiff

CF24 5PJ


16 October 2023



Citizens Advice Kensington and Chelsea



Statement of Financial Activities

for the Year Ended 31 March 2023



2023


2022


Unrestricted


Restricted


Total


Total


funds


funds


funds


funds


Notes

£   

£   

£   

£   


Income and endowments from

Donations and legacies

2

8,014


-


8,014


8,524



Charitable activities

4

Bureaux, Community and Legal Services

618,154


94,105


712,259


780,142


Wormwood Scrubs

-


23,698


23,698


70,449


Adult Social Care

-


118,564


118,564


246,791


Grenfell Project

-


223,966


223,966


179,445


Universal Support

-


-


-


86,598



Investment income

3

1,640


-


1,640


98


Other income

5

-


-


-


370


Total

627,808


460,333


1,088,141


1,372,417



Expenditure on

Charitable activities

6

Bureaux, Community and Legal Services

490,531


63,272


553,803


716,166


Wormwood Scrubs

-


17,709


17,709


80,041


Adult Social Care

-


98,382


98,382


238,055


Money Advice Project

-


-


-


9,088


Grenfell Project

-


197,217


197,217


150,492


Universal Support

-


1,754


1,754


86,501


Total

490,531


378,334


868,865


1,280,343



NET INCOME

137,277


81,999


219,276


92,074




Reconciliation of funds

Total funds brought forward

248,716


130,966


379,682


287,608



Total funds carried forward

385,993


212,965


598,958


379,682




Citizens Advice Kensington and Chelsea (Registered number: 03174842)



Statement of Financial Position

31 March 2023



2023


2022


Unrestricted


Restricted


Total


Total


funds


funds


funds


funds


Notes

£   

£   

£   

£   


Fixed assets


Tangible assets

12

1,066


-


1,066


5,536



Current assets


Debtors

13

61,697


-


61,697


7,089


Cash at bank and in hand

739,211


212,966


952,177


895,070


800,908


212,966


1,013,874


902,159



Creditors


Amounts falling due within one year

14

(132,274

)

-


(132,274

)

(191,819

)


Net current assets

668,634


212,966


881,600


710,340



Total assets less current liabilities

669,700


212,966


882,666


715,876



Pension liability

16

(283,708

)

-


(283,708

)

(336,194

)


NET ASSETS

385,992


212,966


598,958


379,682


Funds

15

Unrestricted funds

385,992


248,716


Restricted funds

212,966


130,966


Total funds

598,958


379,682



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




The financial statements were approved by the Board of Trustees and authorised for issue on 12 October 2023 and were signed on its behalf by:






Ms K G Blagden - Trustee






Ms C T H Bruce - Trustee



Citizens Advice Kensington and Chelsea



Statement of Cash Flows

for the Year Ended 31 March 2023



2023


2022


Notes

£   

£   



Cash flows from operating activities

Cash generated from operations

1

58,707


142,922



Net cash provided by operating activities

58,707


142,922




Cash flows from investing activities

Purchase of tangible fixed assets

(1,600

)

-



Net cash (used in)/provided by investing activities

(1,600

)

-




Change in cash and cash equivalents in

the reporting period

57,107


142,922



Cash and cash equivalents at the

beginning of the reporting period

895,070


752,148



Cash and cash equivalents at the end of

the reporting period

952,177


895,070





Citizens Advice Kensington and Chelsea



Notes to the Statement of Cash Flows

for the Year Ended 31 March 2023


1.

Reconciliation of net income to net cash flow from operating activities


2023


2022

£   

£   



Net income for the reporting period (as per the Statement of Financial

Activities)

219,276


92,074




Adjustments for:


Depreciation charges

6,070


5,536




Increase in stocks

-


(80,467

)



(Increase)/decrease in debtors

(54,608

)

44,384




(Decrease)/increase in creditors

(59,545

)

116,550




Difference between pension charge and cash contributions

(52,486

)

(35,155

)



Net cash provided by operations

58,707


142,922





2.

Analysis of changes in net funds



At 1.4.22

Cash flow

At 31.3.23

£   

£   

£   



Net cash



Cash at bank and in hand

895,070


57,107


952,177



895,070


57,107


952,177




Total

895,070


57,107


952,177





Citizens Advice Kensington and Chelsea



Notes to the Financial Statements

for the Year Ended 31 March 2023


1.

Accounting policies



Statutory information


Citizens Advice Kensington and Chelsea is an incorporated charity, limited by guarantee, registered in England and Wales. The registered number and registered office address can be found in the Report of the Trustees.



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 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.



Going concern


The financial statements have been prepared on a going concern basis. The Trustees have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. Based on these assessments, the Trustees have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.



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.



Governance costs


These include the costs attributable to the Charity's compliance with constitutional and statutory requirements including audit, strategic management and Trustee's meetings and reimbursed expenses.



Allocation of support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources for example staff costs by the time spent and other costs by their usage.


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

-

33% on cost



Taxation

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


Fund accounting

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

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.



Citizens Advice Kensington and Chelsea



Notes to the Financial Statements - continued

for the Year Ended 31 March 2023


1.

Accounting policies - continued



Pension costs and other post-retirement benefits


The Charity is part of a multi-employer defined benefit pension scheme. The plan closed to future accrual on 31 March 2008. A separate actuarial valuation for the Charity is unable to be obtained in relation to the pension scheme and therefore it is unable to ascertain its share of the underlying assets and liabilities of the plan at the year end. The liability has therefore been calculated based on the present value of the funding agreement with the pension plan. The liability has been discounted at an appropriate market rate. For more information see note 16.



Defined contribution pension schemes


The Charity operates a defined contribution pension scheme. Contributions payable to the Charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.



Donated services and facilities


Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.



Debtors

Trade and other debtors are recognised at the settlement amount due after any discount offered. Prepayments are valued at the amount prepaid net of any discounts due.

Cash at bank and in hand
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account

Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Financial instruments
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of loans which are subsequently measured at amortised cost using the effective interest method.

Termination benefits
Termination benefits are recognised when the charity is demonstrably committed either:

- to terminate the employment of an employee or group of employees before the normal retirement date; or
- to provide termination benefits as a result of an offer made in order to encourage voluntary redundancy.

Termination benefits are recognised at the best estimate of the expenditure that would be required to settle the obligation at the reporting date.



Citizens Advice Kensington and Chelsea



Notes to the Financial Statements - continued

for the Year Ended 31 March 2023


2.

Donations and legacies


2023


2022

£   

£   



Donations

8,014


8,524




3.

Investment income


2023


2022

£   

£   



Interest received

1,640


98




4.

Income from charitable activities


2023


2022


Activity

£   

£   



Royal Borough of Kensington

& Chelsea - general grant


Bureaux, Community and Legal Services

550,000


630,541




C&NW London NHS

Foundation Trust


Bureaux, Community and Legal Services

49,443


-




RBKC

Bureaux, Community and Legal Services

41,133


86,875




BLF

Bureaux, Community and Legal Services

14,211


-




Campden Charities

Bureaux, Community and Legal Services

4,500


10,500




CitA

Bureaux, Community and Legal Services

-


295




The National Lottery

Bureaux, Community and Legal Services

52,972


51,931




Wormwood Scrubs - donations

in kind


Wormwood Scrubs

23,698


10,000




The City Bridge Trust

Wormwood Scrubs

-


43,958




HMP Wormwood Scrubs

Wormwood Scrubs

-


16,491




RBKC - Social Services

Adult Social Care

114,783


216,791




C&NW London NHS

Foundation Trust


Adult Social Care

3,781


30,000




C&NW London NHS

Foundation Trust


Grenfell Project

98,000


57,500




RBKC

Grenfell Project

-


70,000




BLF

Grenfell Project

125,966


-




Kensington & Chelsea

Foundation


Grenfell Project

-


51,945




CitA

Universal Support

-


86,598



1,078,487


1,363,425





Donations in kind relate to the rental of the facilities at Wormwood Scrubs H M Prison for the Charity to provide advisory services.


5.

Other income


2023


2022

£   

£   



Other income

-


370





Other income received includes funding received on behalf of bureau clients for legal advice to conclude a settlement agreement.




Citizens Advice Kensington and Chelsea



Notes to the Financial Statements - continued

for the Year Ended 31 March 2023


6.

Charitable activities costs


Support



Direct

costs (see



Costs

note 7)

Totals

£   

£   

£   



Bureaux, Community and Legal Services

393,533


160,270


553,803




Wormwood Scrubs

6,097


11,612


17,709




Adult Social Care

79,103


19,279


98,382




Grenfell Project

127,495


69,722


197,217




Universal Support

-


1,754


1,754



606,228


262,637


868,865




7.

Support costs


Premises


Information


Human


costs


technology


resources

£   

£   

£   



Bureaux, Community and Legal Services

14,603


22,212


36,462




Wormwood Scrubs

10,000


-


590




Adult Social Care

2,527


3,726


6,746




Grenfell Project

5,456


6,669


13,390




Universal Support

1,754


-


-



34,340


32,607


57,188




Administration


Governance



costs


Other


costs


Totals

£   

£   

£   

£   



Bureaux, Community and Legal Services

14,480


62,129


10,384


160,270




Wormwood Scrubs

890


132


-


11,612




Adult Social Care

3,042


1,408


1,830


19,279




Grenfell Project

5,302


35,500


3,405


69,722




Universal Support

-


-


-


1,754



23,714


99,169


15,619


262,637




8.

Net income/(expenditure)



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




2023


2022

£   

£   



Auditors' remuneration

8,701


8,220




Depreciation - owned assets

6,070


5,536






Citizens Advice Kensington and Chelsea



Notes to the Financial Statements - continued

for the Year Ended 31 March 2023


9.

Trustees' remuneration and benefits


There were no trustees' remuneration or other benefits for the year ended 31 March 2023 nor for the year ended 31 March 2022.



Trustees' expenses


There were no trustees' expenses paid for the year ended 31 March 2023 nor for the year ended 31 March 2022.


10.

Staff costs


2023


2022

£   

£   



Wages and salaries

586,010


989,502




Social security costs

55,373


80,532




Other pension costs

20,180


33,191



661,563


1,103,225





Key management relate to employees that are deemed to have significant influence on the strategic direction of the Charity. Key management remuneration for the year totalled £93,670 (2022: £78,957 ).



Included within wages are redundancy costs totalling £nil (2022:£114,530). Of this balance, £nil (2022: £43,184) is included within accruals as at the year end.



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



2023


2022


Project workers

15


31




Management and administration

2


2



17


33





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


11.

Comparatives for the statement of financial activities


Unrestricted


Restricted


Total


funds


funds


funds

£   

£   

£   



Income and endowments from


Donations and legacies

3,524


5,000


8,524




Charitable activities


Bureaux, Community and Legal Services

645,344


134,798


780,142



Wormwood Scrubs

-


70,449


70,449



Adult Social Care

-


246,791


246,791



Grenfell Project

-


179,445


179,445



Universal Support

-


86,598


86,598




Investment income

98


-


98



Other income

370


-


370



Total

649,336


723,081


1,372,417




Expenditure on



Citizens Advice Kensington and Chelsea



Notes to the Financial Statements - continued

for the Year Ended 31 March 2023


11.

Comparatives for the statement of financial activities - continued


Unrestricted


Restricted


Total


funds


funds


funds

£   

£   

£   



Charitable activities


Bureaux, Community and Legal Services

589,279


126,887


716,166



Wormwood Scrubs

-


80,041


80,041



Adult Social Care

-


238,055


238,055



Money Advice Project

-


9,088


9,088



Grenfell Project

-


150,492


150,492



Universal Support

-


86,501


86,501



Total

589,279


691,064


1,280,343




NET INCOME

60,057


32,017


92,074





Reconciliation of funds


Total funds brought forward

188,659


98,949


287,608




Total funds carried forward

248,716


130,966


379,682



12.

Tangible fixed assets


Computer


equipment

£   



Cost


At 1 April 2022

68,130




Additions

1,600




At 31 March 2023

69,730




Depreciation


At 1 April 2022

62,594




Charge for year

6,070




At 31 March 2023

68,664




Net book value


At 31 March 2023

1,066




At 31 March 2022

5,536






Citizens Advice Kensington and Chelsea



Notes to the Financial Statements - continued

for the Year Ended 31 March 2023


13.

Debtors: amounts falling due within one year

2023

2022


£   

£   



Other debtors

-


4,408




Accrued income

59,008


-




Prepayments

2,689


2,681



61,697


7,089




14.

Creditors: amounts falling due within one year

2023

2022


£   

£   



Social security and other taxes

13,353


19,752




Other creditors

10,201


17,938




Amounts held on behalf of clients

22,800


12,726




Deferred income

69,178


27,006




Accrued expenses

16,742


114,397



132,274


191,819




Deferred income

£
Deferred income as at 1 April 202227,006
Released in the year(27.006)
Income deferred in the year69,178
Deferred income as at 31 March 202369,178

Deferred income relates to grant income that the Charity has received but is not entitled to at the year end in line with FRS 102 SORP.

15.

Movement in funds


Net


Transfers




movement


between


At



At 1.4.22


in funds


funds


31.3.23


£   

£   

£   

£   



Unrestricted funds


General fund

295,191


-


(295,191

)

-




General Fund - Bureaux Services

289,719


84,790


245,191


619,700




Pension liability

(336,194

)

52,486


-


(283,708

)



Designated Fund - IT and Service

Developments

-


-


50,000


50,000



248,716


137,276


-


385,992




Restricted funds


HM Prison Service - Wormwood Scrubs

3,875


5,665


-


9,540




Adult Social Care

78,817


20,182


-


98,999




RBKC - Grenfell Project

39,983


26,748


-


66,731




Universal Support

381


(381

)

-


-




National Lottery Community Fund

768


2,895


-


3,663




Kensington Covid Recovery

7,142


26,891


-


34,033



130,966


82,000


-


212,966




TOTAL FUNDS

379,682


219,276


-


598,958





Citizens Advice Kensington and Chelsea



Notes to the Financial Statements - continued

for the Year Ended 31 March 2023


15.

Movement in funds - continued



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



Incoming


Resources


Movement



resources


expended


in funds


£   

£   

£   



Unrestricted funds


General Fund - Bureaux Services

627,808


(543,018

)

84,790




Pension liability

-


52,486


52,486



627,808


(490,532

)

137,276




Restricted funds


HM Prison Service - Wormwood Scrubs

23,698


(18,033

)

5,665




Adult Social Care

118,564


(98,382

)

20,182




RBKC - Grenfell Project

223,967


(197,219

)

26,748




Universal Support

-


(381

)

(381

)



National Lottery Community Fund

52,972


(50,077

)

2,895




Kensington Covid Recovery

41,132


(14,241

)

26,891



460,333


(378,333

)

82,000




TOTAL FUNDS

1,088,141


(868,865

)

219,276






Comparatives for movement in funds



Net




movement


At



At 1.4.21


in funds


31.3.22


£   

£   

£   



Unrestricted funds


General fund

295,191


-


295,191




General Fund - Bureaux Services

264,817


24,902


289,719




Pension liability

(371,349

)

35,155


(336,194

)


188,659


60,057


248,716




Restricted funds


HM Prison Service - Wormwood Scrubs

8,466


(4,591

)

3,875




Adult Social Care

70,081


8,736


78,817




Money Advice Project

9,088


(9,088

)

-




RBKC - Grenfell Project

11,030


28,953


39,983




Universal Support

284


97


381




National Lottery Community Fund

-


768


768




Kensington Covid Recovery

-


7,142


7,142



98,949


32,017


130,966




TOTAL FUNDS

287,608


92,074


379,682





Citizens Advice Kensington and Chelsea



Notes to the Financial Statements - continued

for the Year Ended 31 March 2023


15.

Movement in funds - continued



Comparative net movement in funds, included in the above are as follows:



Incoming


Resources


Movement



resources


expended


in funds


£   

£   

£   



Unrestricted funds


General Fund - Bureaux Services

649,336


(624,434

)

24,902




Pension liability

-


35,155


35,155



649,336


(589,279

)

60,057




Restricted funds


HM Prison Service - Wormwood Scrubs

75,450


(80,041

)

(4,591

)



Adult Social Care

246,791


(238,055

)

8,736




Money Advice Project

-


(9,088

)

(9,088

)



RBKC - Grenfell Project

179,445


(150,492

)

28,953




Universal Support

86,598


(86,501

)

97




National Lottery Community Fund

51,930


(51,162

)

768




Kensington Covid Recovery

82,867


(75,725

)

7,142



723,081


(691,064

)

32,017




TOTAL FUNDS

1,372,417


(1,280,343

)

92,074





WormWood Scrubs project is an advice bureau service in HM Prison, which began in 1994, which has been largely funded by HM Prison Service together with various other funding partners.



Income Maximisation projects, Mental Health project, B&E project and the HIV project funded by the local authority's Social Services Department (Adult Social Care) all began between 1995 and 2002. These projects provide advice and casework to help vulnerable adults (including older people, and those with physical or mental health conditions) with benefits-related issues. The fund has previously been split into 3 separate funds within the financial statements but have now been consolidated into one Adult Social Care fund. Total net funds carried forward at the year end total £98,999.



Grenfell project, which commenced in June 2017, provides advice and support on a range of important matters such as rehousing of survivors and displaced residents, supporting residents to make claims for welfare benefits, assisting families and survivors who received charitable donations and supporting residents with their employer relationships.



Universal Support project provided the advice and support people need to make and complete their first Universal Credit claim. This project has now finished.



Pension liability has been designated within unrestricted funds to separately identify the amount owed by the Charity to fund the defined benefit pension deficit at the year end.



The Kensington Covid Recovery funding has enabled the charity to restructure, by meeting redundancy costs and buy in professional support for the process.



The National Lottery Community funding has enabled the charity to almost double the number of volunteers workings in the service, substantially increasing our advice capacity.



Transfers between funds



£50,000 has been set aside from unrestriced funds as a designated fund in the year, for IT and Service Development costs anticipated in 2023/24.



£295,191 has been transferred from General fund to General Fund - Bureaux Services as both funds are set up for general unrestricted purpose.



Citizens Advice Kensington and Chelsea



Notes to the Financial Statements - continued

for the Year Ended 31 March 2023


16.

Employee benefit obligations



Citizens Advice ('the Principal Employer') operates a defined benefit scheme ('the Plan') in the UK which provides both pensions in retirement and death benefits to members. Pension benefits are related to the members' final salaries at retirement and their length of service at the date they retired or left pensionable service. The Plan closed to future accrual on 31 March 2008. The Plan also contains some money purchase AVCs and protected rights funds, which are not included in these disclosures.



In accordance with the schedule of contributions in force over the 2023/24 accounting year, the contributions to the Plan for the year ending 31 March 2024 are expected to be £2,579,000, which includes £2,279,000 towards the deficit and £300,000 as an allowance for administration expenses and all scheme levies. The 31 March 2022 valuation is currently underway and a new schedule of contributions will be put in place at its completion.



The Plan is a registered scheme under UK legislation. The Plan is subject to the scheme funding requirements outlined in UK legislation. The Plan is governed by the Plan's Trust Deed and Rules dated 4 April 2011. The Trustee is responsible for the operation and the governance of the Plan, including making decisions regarding the Plan's funding investment strategy (although they are required to consult the Principal Employer).



A full actuarial valuation of the Plan was carried out as at 31 March 2023 by a qualified independent actuary, based upon membership data as at 31 March 2022, allowing for assumed membership movements over the period from this date, and any material membership movements significantly different from those assumed (e.g. transfers out).



The most recent formal actuarial valuation of the Plan was as at 31 March 2019 and revealed a funding deficit of £68,501,000. In the recovery plan agreed following the valuation, the Principal Employer and other participating employers agreed to pay deficit reduction contributions of £2,279,000 per annum with the view to eliminating the deficit by 31 March 2037. The 31 March 2022 valuation is currently underway.



The liabilities of the Plan are based on the current value of expected benefit payment cashflows to members of the Plan over the next 60 or more years. The average duration of the liabilities is approximately 15 years.



The Plan is exposed to actuarial risks such as market (investment) risk, interest rate risk, inflation risk, currency risk and longevity risk.



As the Charity is unable to value its share of the multi-employer pension scheme assets and liabilities at the year end, the pension liability has been calculated based on the net present value of future pension deficit contributions. The Charity has agreed to make deficit contributions of £27,000 to the pension scheme per year until 2037. The discount factor of 4.8% (2022: 2.8%) has been extracted from the actuarial valuation report of the multi-employer pension scheme.





2023


2022



£


£


Pension liability brought forward


336,194


371,349


Deficit contribution in the year


(27,000

)

(27,000


Net present value remeasurementNet (gains)/losses on revaluation on

pensions


(25,486

)

(8,155


Pension liability as at 31 March


283,708


336,194




Citizens Advice Kensington and Chelsea



Notes to the Financial Statements - continued

for the Year Ended 31 March 2023


17.

Operating lease commitments


At the reporting date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases which fall due as follows:

20232022
££
Within one year13,38913,389
Between one and five years6,69523,431
Total20,08436,820


Total operating lease costs recognised in the SOFA in the year was £13,389 (2022: £13,389).

18.

Related party disclosures



There were no related party transactions for the year ended 31 March 2023.