Charity registration number 1109872
Company registration number 05453262 (England and Wales)
WATFORD CITIZENS ADVICE BUREAU
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
WATFORD CITIZENS ADVICE BUREAU
LEGAL AND ADMINISTRATIVE INFORMATION
Trustee
Mr Abayomi Akisanya
Mr Laurence Blake
Mr Richard Boulton
Ms Leena Nagrecha
Mr Mohammed Farrukh Siddiqi
Mr Keith Holmes
(Appointed 24 August 2023)
Ms Suzannah Trivedi
(Appointed 16 November 2023)
Cllr Kennedy Rodrigues
Representing Watford Borough Council
Cllr Jennifer Pattinson
Representing Watford Borough Council
Ms Danielle Sherman
(Resigned 4 August 2023)
Mr Anthony Swabe
(Resigned 12 October 2023)
Dr Pui Wah Carter
(Resigned 7 November 2023)
Honorary Officers
Chairman
Mr Mohammed Farrukh Siddiqi
Treasurer
Mr Laurence Blake
Dr Pui Wah Carter
(Retired 1 September 2023)
Company Secretary
Ms Leena Nagrecha
Principal Staff
Chief Officer
Ms Emma Burgham
Advice Service Manager
Mr Duncan Burden
Projects Manager
Ms Kalpna Budhdeo
Charity number
1109872
Company number
05453262
Principal address
St Mary's Churchyard
High Street
Watford
Hertfordshire
WD17 2BE
Registered office
St Mary's Churchyard
High Street
Watford
Hertfordshire
WD17 2BE
Independent examiner
Gary Howard FCA
Howard Wilson Chartered Accountants
36 Crown Rise
Watford
Hertfordshire
WD25 0NE
WATFORD CITIZENS ADVICE BUREAU
LEGAL AND ADMINISTRATIVE INFORMATION
Bankers
CAF Bank
25 Kings Hill Avenue
West Malling
Kent
ME19 4JQ
United Trust Bank Limited
One Ropemaker Street
London
EC2Y 9AW
Flagstone
1st Floor
Clareville House
26-27 Oxenden Street
London
SW1Y 4EL
WATFORD CITIZENS ADVICE BUREAU
CONTENTS
Page
Trustees' report
1 - 5
Statement of trustees' responsibilities
6
Independent examiner's report
7
Statement of financial activities
8 - 9
Balance sheet
10 - 11
Statement of cash flows
12
Notes to the financial statements
13 - 26
WATFORD CITIZENS ADVICE BUREAU
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The Trustee Board of Watford Citizens Advice Bureau (“the Bureau” or “the Company”) presents its report and accounts for the year ended 31 March 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
Objectives and activities
Watford Citizens Advice Bureau is a local charity funded by local grants and donations. Being a member of the National Citizens Advice we share its key missions:
-
Provide advice fit for the future - Be there for people when they need us in the ways that make the biggest impact
-
Close the gap - End the disparities in access and experience of marginalized people
-
Take early action - Prevent more people from reaching crisis by addressing problems earlier
We add value and relieve pressure on statutory providers by bringing benefits to the Watford economy and reducing dependency on their services.
Public Benefit
The Trustees have given consideration to the guidance issued by the Charity Commission in respect of public benefit in respect of all its activities.
The Bureau's Activities
The Bureau provides free, confidential, independent and impartial advice to everybody regardless of race, gender, disability, sexual orientation, religion, age or nationality. The Bureau recognises the positive value of diversity, promotes equality and challenges discrimination.
The Bureau helps people in the Watford to resolve their problems. As part of the UK's largest advice network, we are equipped to deal with many issues including debt, benefits, employment, housing, energy advice and many more. Our clients are at the heart of the service, and we are here to ensure that people who need help get the right support at the right time.
Expert, confidential and compassionate advice and advocacy is provided to help people move forward out of poverty or financial hardship, supporting at points of crisis, including preventing homelessness. Our intervention and advice contribute to breaking cycles of deprivation, relieving the pressure on statutory services and reducing the need for referral to other agencies. We help everyone when facing a significant challenge in their lives, reducing the need for further ‘downstream' intensive and costly services as well as reducing the adverse impact on the individual and their family.
The main area of the charitable activity is providing advice. Generalist advice is offered by volunteers and paid staff. Paid caseworkers provide specialist advice on debt and benefits issues. Along with other Hertfordshire Citizens Advice offices, we have access to a British Sign Language (BSL) adviser funded via Hertfordshire County Council. The Bureau is a referral agency for the Free Representation Unit whereby solicitors represent clients at Tribunals and court hearings on a pro bono basis.
Face-to-face advice is provided to clients at the Bureau's Watford office situated in the Advice Centre. Telephone advice is provided by advisors in partnership with nine other Hertfordshire Citizens Advice Services. Watford residents can access information on the Citizens Advice website or contact Watford Citizens Advice via email. There is free internet access for clients from computers in the reception area, providing access to the Citizens Advice website, other key advice sites and local information.
WATFORD CITIZENS ADVICE BUREAU
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
The Bureau is involved in the community, works with local or community partners and attends local events. Advisers, assessors, administrative workers, receptionists, and project workers make up the bulk of the Bureau's workforce. Our volunteers form the backbone of the service and the Trustees are responsible for governing the organisation.
Major Risks
The Bureau maintains a risk register which is agreed by the Trustee Board. A comprehensive annual budgeting process is approved by the Board, during which a thorough assessment of our key external and internal risks is undertaken, together with how these risks are being managed. In addition, the Board received regular reports from the Finance Risk and Remuneration Committee which reviews the risk register with the Chief Officer. Together, they assess the adequacy of internal control systems and risk management processes in place. The Board reviews the risk register quarterly including the key risks, the adequacy of the actions being taken to address them and the advent of any new risks.
The Bureau has a balanced approach to risk management and adopts an active process to the mitigation of risk. The most significant risks faced by the Bureau have been identified by the Trustee Board and relate to the following:
-
Maintaining volunteer recruitment at a level that keeps pace with turnover and service requirements.
-
Sustaining income in a highly competitive environment with the ongoing pressures on public funding.
-
Servicing the anticipated increases to demand due to welfare reforms and ongoing cost of living crisis.
The Trustees remain satisfied that all insurable risks have been identified and adequately dealt with and that the Bureau's exposure to other risks is kept at a minimum by good working practice by the management team, paid staff and volunteers.
Achievements and performance 2023-24
In 2023/24, we worked at operational capacity, optimising resources across service channels to maximise support to the community.
We continued to prioritise the maintenance of our drop-in service 4 mornings a week to meet the needs of our most vulnerable clients, including those in crisis and those facing language and/or digital barriers.
Advice is provided by a number of channels including face-to-face, phones, and email. Support and useful information is also available via the website.
2023/24 Service Highlights
-
Advised 670 people a month
-
Helped clients with 14,252 issues
-
Answered an average of 239 calls per month
-
Approx. 180 people helped at drop-in every month
-
Average of 190 advice appointments per month
-
Increased income of clients with benefits & tax credit issues by an average of £5,530 per client
-
Wrote off & stabilised debts of £797,297
-
Regular newsletters with key communications for the community
-
Publications of Housing Insecurity Report
-
Cyber Essentials and Cyber Essentials Plus accreditation
The demand for our service remains high and we are often limited by the available resources. Significant increase in client issues requiring detailed casework and more than one appointment, is directly impacting the available resources.
We continued to provide advice to a large number of people who are disabled or have a long-term health condition. In 2023/24 they accounted for 45% of the clients that disclosed this information. This number rises to 55% for clients helped with cost of living issues, underlining the impact of price rises on this vulnerable group.
WATFORD CITIZENS ADVICE BUREAU
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Eight issues (Debt, Benefits & Tax Credits, Charitable Support & Foodbanks, Housing, Utilities, Universal Credit, Relationships & Family, and Employment) accounted for 85% of the total issues we helped clients with during 2023/24.
There are marked changes in the client issues compared to 2022/23, reflecting a community struggling with the cost of living. Benefits and Tax Credits remain the top issue for clients. Debt issues increase by 31% in the year compared to the previous year, with significant increases in Council Tax and Credit card debts.
The ongoing impact of cost of living pressures are evident. It is good news that benefits have been uprated in line with inflation from 1st April 2024, but this has not reduced the financial pressures on low-income households.
We anticipate the high demand for crisis support and expert debt and housing advice to continue as:
-
Food and energy prices remain very high, hitting low-income families hard in particular.
-
The number people of struggling on negative budgets (essential outgoings greater than income) is rising, exacerbated by bills having risen in April
-
A lack of low cost housing and high rental rates in Watford, plus the delay in banning no-fault evictions continue to create a high level of housing insecurity
The Trustees are pleased to report that the Bureau has continued its volunteer recruitment and training program and the total number of volunteers is being maintained around 40.
Specialist legal advice is available for family and immigration issues. Expert advice is available for Benefits, Debt, Employment and Housing issues.
Projects
Projects undertaken by the Bureau during 2023/24 included:
Hertfordshire County Council funded projects:
-
Crisis Intervention - support for Hertfordshire clients facing crisis
-
Cost of Living Advisor - additional support for people facing cost of living difficulties
-
HERT Debt - Specialist debt casework advice for Hertfordshire clients
National Citizens Advice – Energy advice project
Foodbank Trussell Trust – provision of voucher phone line & dedicated Money and benefits advice for Foodbank clients
Watford Community Housing - debt and benefits advice to WCH residents
Disability Benefits - Additional support for Disability Benefits claimants
National Lottery - Support for Cost of Living advice
Housing Support – housing advisor supporting WBC housing team
Achievements of the volunteers
Volunteers are an essential part of the service provided by Watford Citizens Advice, providing advice and information to the clients. All the volunteers are very generous with their time either working in the office or remotely. During the 2023-24 period, volunteers contributed an average of 265 hours per week of time which is estimated as £306,105 in value.
The Bureau offers excellent training to staff and volunteers. Each volunteer adviser undergoes over 400 hours of training before becoming qualified to advise at a generalist level and additional training is required for specialist advisers.
Acknowledgements
We are very grateful to every funder who has made our work possible this year and would like to thank the following:
Watford Borough Council, Hertfordshire County Council, Watford Community Housing Trust, Watford Foodbank, National Citizens Advice, Bugler Foundation, Watford & Three Rivers Trust and the National Lottery.
WATFORD CITIZENS ADVICE BUREAU
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
Strategic report
The description under the headings "Achievements and Performance 2023- 24" and "Financial Review" meet the company law requirements for the Trustees to present a Strategic Report.
Financial review
The year ended 31 March 2024 saw income of £615,792 and expenditure of £576,095. Both the income and expenditure are higher than last year reflecting the new projects secured and additional associated resources.
The pension liabilities further decreased significantly from £5,672 to £2,649 based on the latest evaluation by the pension provider.
At the year end, £521,743 was held as cash at bank, of which £77,455 related to restricted funds.
Investment Policy
The Articles of Association gives the Trustees power to invest or deposit funds in any lawful manner. The WBC grant is paid quarterly, and the Bureau has placed any surplus funds on deposit mainly with the Flagstone platform. In order to mitigate any losses should there be another banking crisis, the Flagstone funds have been invested in a number of bank accounts, within the level of the financial compensation scheme.
Reserves policy
The Trustees believe that the Bureau should hold financial reserves in order to ensure that it can continue to operate and meet the needs of clients and creditors in the event of unforeseen circumstances. The pension fund deficit is considered to be an operating expense and as such the liability for the pension fund is met out of current income.
Unrestricted reserves
The Trustees consider that it would be prudent to set aside at least 6-9 months of operating expenditure; at 31 March 2024 this equates to between £288,157 and £432,235, compared to actual unrestricted reserves of £352,410.
Plans for Future Periods
The strategic priorities of the two-year Business Development Plan 2024-26 are:
-
Sustainability - secure our organisation through funding, people retention, flexible workforce and innovation
-
Culture - to be a collaborative, supportive and proactive service that promotes equality, diversity and inclusion
-
Advice - improve our advice process to maintain quality and optimise client pathway
-
Advocacy - to be a stronger voice on the issues that impact all those in need - particularly those in marginalised groups
Structure, governance and management
Governing Document
The Bureau is a company limited by guarantee governed by its Articles of Association dated 9th December 2022. It is registered as a charity with the Charity Commission. All directors are members of the Company and cease to be a member when he or she ceases to be a director. Membership is also open to other individuals or organisations provided the individuals are over 16 years of age and not paid workers, employees or unpaid volunteers of the charity. There are currently 12 members, each of whom have agreed to contribute £1 in the event of the charity winding up.
WATFORD CITIZENS ADVICE BUREAU
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
Appointment of Trustees
The Trustees who served during the year are listed on the Legal and Administrative Information Page.
The directors of the Company are also trustees of the Bureau for the purposes of Charity law and under the Company's Articles are known as members of the Trustee Board. Under the requirements of the Articles of Association, elected Trustees serve for a period of three years after which they must be re-elected at the next Annual General Meeting. Trustees nominated by WBC are also subject to the appointment processes of that body and the guidelines on appointment to public office as they apply to local government nominees.
Trustee Induction and Training
New Trustees attend Induction Training, which gives them an outline of the Citizens Advice Services and its aims, principles and policies. Trustees are given introductory information and the new Trustees also spend time in the Bureau and have meetings with the specialist advisers, the Chief Officer and the Company Secretary. There are explanations of the role of a Trustee/Director, the Board, the development plan and issues including funding and client statistics. Trustees with interests in particular areas are encouraged to go on with further training. There are learning materials available for Trustees and these range from recruitment & selection to health & safety. Trustees are able to attend regional training events and are updated on governance issues as necessary. Trustees are asked to complete on annual basis online training in Information Assurance.
Organisation
The Trustee Board currently comprises nine Trustees, including the Chairman, Treasurer, Company Secretary, and two Trustees representing WBC. The Trustee Board meets at least four times a year and has collective responsibility for setting strategic objectives, ensuring sound governance and overall management of the Bureau, including risk management, direction and performance of the Bureau. The Trustee Board gives the Chief Officer duties and powers to represent and to manage the Bureau in accordance with the delegation of authorities and policies approved by the Trustee Board.
The Board has established two sub-committees, Governance and Finance, Risk and Remuneration Committee to assist the Trustee Board in the carrying out of its business by reviewing and analysing certain matters prior to being considered by the full Trustee Board. The scope of responsibilities for the Governance Committee includes governance and regulatory compliance matters as well as review of policies. The scope of responsibilities for the Finance, Risk and Remuneration Committee covers business, financial reporting and controls, risk and remuneration related matters.
Related Parties
The Bureau is a member of National Citizens Advice, which provides the Bureau with its Information System, Intranet and the case-recording system Casebook. Citizens Advice also provides specialist support and audits the Bureau for organisational performance and for quality of advice.
WBC provides the essential core funding for the Bureau and this includes premises costs. The Bureau also works closely with other Citizens Advice offices in Hertfordshire to make joint funding bids and delivery of associated services. The Bureau is a member of the local Voluntary Sector consortium Watford and Three Rivers Trust. The Bureau has links with local solicitors who offer pro-bono advice.
The Trustees Report was approved by the Board of Trustees.
Mr M. F. Siddiqi
Chairman
Dated: 6 August 2024
WATFORD CITIZENS ADVICE BUREAU
STATEMENT OF TRUSTEES' RESPONSIBILITIES
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
The Trustees are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare accounts 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 accounts, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent; and
- prepare the accounts 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 accounts 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.
WATFORD CITIZENS ADVICE BUREAU
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF WATFORD CITIZENS ADVICE BUREAU
- 7 -
I report to the trustees on my examination of the financial statements of Watford Citizens Advice Bureau (the charity) for the year ended 31 March 2024.
Responsibilities and basis of report
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity 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 the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of The Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
2
the financial statements do not accord with those records; or
3
the financial statements 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 financial statements 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 financial statements to be reached.
Gary Howard FCA
Howard Wilson Chartered Accountants
36 Crown Rise
Watford
Hertfordshire
WD25 0NE
Dated: 16 August 2024
WATFORD CITIZENS ADVICE BUREAU
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
Current financial year
Unrestricted
Restricted
Total
Total
funds
funds
2024
2024
2024
2023
Notes
£
£
£
£
Income and endowments from:
3
249,252
-
249,252
269,110
4
948
349,288
350,236
239,179
Investments
5
16,179
-
16,179
5,154
6
-
125
125
372
Total income
266,379
349,413
615,792
513,815
Expenditure on:
Raising funds
7
346
-
346
642
8
244,382
331,367
575,749
482,759
Total expenditure
244,728
331,367
576,095
483,401
Net income for the year/
Net incoming resources
21,651
18,046
39,697
30,414
Other recognised gains and losses
Actuarial (loss)/gain on defined benefit pension schemes
-
-
-
152
Net movement in funds
21,651
18,046
39,697
30,566
Fund balances at 1 April 2023
330,759
59,409
390,168
359,602
Fund balances at 31 March 2024
352,410
77,455
429,865
390,168
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
WATFORD CITIZENS ADVICE BUREAU
STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
Prior financial year
Unrestricted
Restricted
Total
funds
funds
2023
2023
2023
Notes
£
£
£
Income and endowments from:
3
268,675
435
269,110
4
1,471
237,708
239,179
Investments
5
5,154
-
5,154
6
372
-
372
Total income
275,672
238,143
513,815
Expenditure on:
Raising funds
7
642
-
642
8
268,546
214,213
482,759
Total expenditure
269,188
214,213
483,401
Net incoming resources before transfers
6,484
23,930
30,414
Net income for the year/
Net incoming resources
6,484
23,930
30,414
Other recognised gains and losses
Actuarial (loss)/gain on defined benefit pension schemes
152
-
152
Net movement in funds
6,636
23,930
30,566
Fund balances at 1 April 2022
324,123
35,479
359,602
Fund balances at 31 March 2023
330,759
59,409
390,168
WATFORD CITIZENS ADVICE BUREAU
BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
-
2,316
Current assets
Debtors
13
6,887
8,838
Cash at bank and in hand
521,743
431,843
528,630
440,681
Creditors: amounts falling due within one year
14
(96,116)
(47,157)
Net current assets
432,514
393,524
Total assets less current liabilities
432,514
395,840
Provisions for liabilities
15
(2,649)
(5,672)
Net assets
429,865
390,168
Income funds
Restricted funds
18
77,455
59,409
Unrestricted funds
General unrestricted funds
355,059
336,431
Pension reserve
(2,649)
(5,672)
352,410
330,759
429,865
390,168
The Balance Sheet continues on the following page
WATFORD CITIZENS ADVICE BUREAU
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024
31 March 2024
- 11 -
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2024.
The Trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the 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 company.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on 6 August 2024
Mr M. F. Siddiqi
Mr L. Blake
Chairman
Treasurer
Company Registration No. 05453262
WATFORD CITIZENS ADVICE BUREAU
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
73,721
19,145
Investing activities
Investment income received
16,179
5,154
Net cash generated from investing activities
16,179
5,154
Net cash used in financing activities
-
-
Net increase in cash and cash equivalents
89,900
24,299
Cash and cash equivalents at beginning of year
431,843
407,544
Cash and cash equivalents at end of year
521,743
431,843
WATFORD CITIZENS ADVICE BUREAU
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
1
Accounting policies
Charity information
Watford Citizens Advice Bureau is a private company limited by guarantee incorporated in England and Wales. The registered office is St Mary's Churchyard, High Street, Watford, Hertfordshire, WD17 2BE.
1.1
Accounting convention
The financial statements 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) (effective 1 January 2019)". 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 financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
1.4
Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
1.5
Expenditure
Expenditure is recognised when a liability is incurred. Contractual and performance related arrangements are recognised as goods or services are supplied. Expenditure includes any non-recoverable VAT.
Expenditure is allocated to activities as follows:
Charitable activities comprise costs which relate directly to delivering activities.
Governance comprises of costs which relate directly to governance arrangements and meeting statutory requirements.
WATFORD CITIZENS ADVICE BUREAU
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery
straight line over 3 years
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.
It is the policy of the charity not to capitalise individual assets costing under £1,000.
1.7
Impairment of fixed assets
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).
1.8
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
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 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
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.
WATFORD CITIZENS ADVICE BUREAU
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities
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 payments 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
1.10
Employee benefits
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 terminating the employment of an employee or to providing termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
There are some employees who are members of the Pensions Trust's Growth Plan which is a multiemployer pension Plan. The charitable company is unable to identify its share of the underlying assets and liabilities. It is therefore accounted for on a defined contribution basis. The annual contributions payable are charged to the Statement of Financial Activities. Further information concerning the Plan is given at note 15.
The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in income/(expenditure) for the year.
Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other recognised gains and losses in the period in which they occur and are not reclassified to income/(expenditure) in subsequent periods.
The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities it is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.
1.12
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.
WATFORD CITIZENS ADVICE BUREAU
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
2
Critical accounting estimates and judgements
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.
3
Unrestricted
Unrestricted
Restricted
Total
funds
funds
funds
2024
2023
2023
2023
£
£
£
£
Donations and gifts
962
6,109
435
6,544
Grants receivable for core activities
248,290
262,566
-
262,566
249,252
268,675
435
269,110
Grants receivable for core activities
Watford Council Direct Grant
204,190
204,190
-
204,190
Watford Council Premises
39,500
39,500
-
39,500
Watford & Three Rivers Trust
-
7,370
-
7,370
Hertfordshire Community Foundation
600
-
-
-
Hertfordshire Citizens Advice Service
4,000
-
-
-
Citizens Advice Bureau
-
11,506
-
11,506
248,290
262,566
-
262,566
WATFORD CITIZENS ADVICE BUREAU
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
4
Advisory services
Advisory services
2024
2023
£
£
Income from services provided
4,448
5,971
Performance related grants
345,788
233,208
350,236
239,179
Analysis by fund
Unrestricted funds
948
1,471
Restricted funds
349,288
237,708
350,236
239,179
Performance related grants
Watford Foodbank
34,393
20,657
Hertfordshire Citizens Advice Service
20,850
135,782
Citizens Advice Bureau - National and Local
139,285
16,841
Watford Borough Council
28,323
-
Bugler Group Limited
3,000
3,000
Community Fund
19,693
1,400
Watford Community Housing Trust
30,815
29,348
Access to Justice - Community Justice Fund
-
14,672
Hertfordshire County Council
57,150
-
Watford Health Trust
6,063
5,212
Other
6,216
6,296
345,788
233,208
5
Investments
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Interest receivable
16,179
5,154
WATFORD CITIZENS ADVICE BUREAU
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
6
Restricted
Unrestricted
funds
funds
2024
2023
£
£
Other income
125
372
7
Raising funds
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Costs of generating voluntary income
Advertising
346
642
346
642
WATFORD CITIZENS ADVICE BUREAU
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
8
2024
2023
£
£
Staff costs
419,565
357,367
Depreciation and impairment
2,316
2,316
5,395
785
3,083
15,684
8,011
12,857
43,993
19,629
3,187
1,357
168
456
26,043
30,861
11,316
23,093
13,375
8,036
25,369
1,017
Legal and professional costs
10,427
6,661
Bank charges and other finance costs
1,111
384
2,390
2,256
575,749
482,759
Analysis by fund
Unrestricted funds
244,382
268,546
Restricted funds
331,367
214,213
575,749
482,759
Governance costs comprise of independent examiner's fees £1,620 (2023: £1,620) and AGM costs £770 (2023: £636).
9
Trustees
None of the trustees (or any persons connected with them) received any remuneration during the year, but 1 of them was reimbursed a total of £95 for travel expenses incurred on behalf of Watford Citizens Advice Bureau.
WATFORD CITIZENS ADVICE BUREAU
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
10
Employees
Number of employees
The average monthly number of employees during the year was:
2024
2023
Number
Number
Advice services
17
13
Management and administration
2
2
19
15
Employment costs
2024
2023
£
£
Wages and salaries
375,552
317,480
Social security costs
23,205
21,545
Other pension costs
20,808
18,342
419,565
357,367
There were no employees whose annual remuneration was £60,000 or more.
11
Taxation
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
12
Tangible fixed assets
Plant and machinery
£
Cost
At 1 April 2023
28,930
At 31 March 2024
28,930
Depreciation and impairment
At 1 April 2023
26,614
Depreciation charged in the year
2,316
At 31 March 2024
28,930
Carrying amount
At 31 March 2024
-
At 31 March 2023
2,316
WATFORD CITIZENS ADVICE BUREAU
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Other debtors
5,708
4,477
Prepayments and accrued income
1,179
4,361
6,887
8,838
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Other taxation and social security
6,281
5,097
Deferred income
16
75,957
31,700
Trade creditors
1,230
3,160
Other creditors
5,333
5,148
Accruals and deferred income
7,315
2,052
96,116
47,157
15
Provisions for liabilities
2024
2023
Notes
£
£
Retirement benefit obligations
17
2,649
5,672
2,649
5,672
16
Deferred income
2024
2023
£
£
Other deferred income
75,957
31,700
Deferred income is included in the financial statements as follows:
2024
2023
£
£
Deferred income is included within:
Current liabilities
75,957
31,700
WATFORD CITIZENS ADVICE BUREAU
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
17
Retirement benefit schemes
Defined contribution schemes
The company participates in the scheme, a multi-employer scheme which provides benefits to some 638 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.
The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.
The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.
A full actuarial valuation for the scheme was carried out at 30 September 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:
Deficit contributions
From 1 April 2022 to 31 January 2025:
£3,312,000 per annum
(payable monthly)
The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.
Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.
WATFORD CITIZENS ADVICE BUREAU
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
17
Retirement benefit schemes
(Continued)
- 23 -
31 March 2024 (£s)
31 March 2023 £s)
31 March 2022
(£s)
Present value of provision
2,649
5,673
8,899
Reconciliation of opening and closing provisions
Period Ended 31 March 2023
Period Ended 31 March 2023
(£s)
(£s)
Provision at start of period
5,673
8,899
Unwinding of the discount factor (interest expense)
217
168
Deficit contribution paid
(3,242)
(3,242)
Remeasurements - impact of any change in assumptions
1
(152)
Remeasurements - amendments to the contribution schedule
.
-
Provision at end of period
2,649
5,673
Income and Expenditure Impact
Period Ended 31 March 2023
Period Ended 31 March 2023
(£s)
(£s)
Interest expense
217
168
Remeasurements – impact of any change in assumptions
1
(152)
Remeasurements – amendments to the contribution schedule
-
-
Assumptions
31 March 2024 % per annum
31 March 2023 % per annum
31 March 2022 % per annum
Rate of discount
5.31
5.52
2.35
The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.
The pension charge for the year was £21,025 (2023: £18,342).
WATFORD CITIZENS ADVICE BUREAU
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
18
Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
Movement in funds
Movement in funds
Balance at
1 April 2022
Incoming resources
Resources expended
Balance at
1 April 2023
Incoming resources
Resources expended
Balance at
31 March 2024
£
£
£
£
£
£
£
Client Funds
2,670
5,416
(6,954)
1,132
6,188
(5,935)
1,385
Hertfordshire Welfare Assistance Scheme
15,025
60,287
(45,312)
30,000
76,429
(68,938)
37,491
Watford Community Housing Trust
-
29,578
(25,136)
4,442
30,815
(35,257)
-
Disability Benefits Service
1,151
10,000
(8,695)
2,456
10,000
(4,477)
7,979
CitA Guardian- Cost of Living Grant
-
-
-
-
15,000
(15,000)
-
Housing Partnership
-
-
-
-
31,470
(26,689)
4,781
Client Emergency Fund
-
3,000
(2,969)
31
3,070
(2,626)
475
Cost of Living Project
-
-
-
-
53,975
(53,975)
-
Hertfordshire Community Training Project
12,496
14,480
(22,664)
4,312
3,500
(7,812)
-
Energy Advice Programme
-
-
-
2,211
16,800
(19,011)
-
Watford Foodbank
-
22,057
(15,863)
6,194
34,393
(33,742)
6,845
The HERT project
3,752
44,935
(40,056)
8,631
48,080
(38,212)
18,499
The Money and Pensions Service (MaPS)
-
23,359
(23,359)
-
-
-
-
Access to Justice (Community Justice Fund)
-
14,672
(14,672)
-
-
-
-
Community Fund Grant
-
-
-
-
19,693
(19,693)
-
Other
385
10,359
(8,533)
-
-
-
-
35,479
238,143
(214,213)
59,409
349,413
(331,367)
77,455
WATFORD CITIZENS ADVICE BUREAU
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
18
Restricted funds
(Continued)
- 25 -
Client Funds is funding received to assist clients purchase items of household equipment.
Hertfordshire Welfare Assistance Scheme is funding to provide advice and guidance to clients in extreme hardship situations, to reduce debt and increase income.
Watford Community Housing Trust is funding to provide debt and benefits advice to Watford Community Housing tenants.
Disability Benefits Service is funding from Blandford Trust towards the cost of the service.
CitA Guardian is a Cost of Living Grant
The Housing Partnerships Grant is for the funding of a housing advisor
Client Emergency Funds is funding received from The Bugler Foundation to provide emergency funds for clients in financial crisis.
Hertfordshire Community Training Project - We received funding from the National Lottery Fund to train staff and volunteers based across Hertfordshire Citizens Advice Services.
Energy Advice Programme is funding for energy advice
Watford Foodbank is funding to provide debt and benefits advice to clients in receipt of multiple food vouchers.
The HERT project is funded by Hertfordshire County Council to provide benefits and debt advice to Primary Care Network (PCN) Link Workers, Community Navigators and Social Prescribers in Hertfordshire. The project is run by The Money Advice Unit (MAU) and Citizens Advice Hertfordshire (Hertsmere and Watford). MAU provide benefit advice with Citizens Advice Hertsmere and Watford providing debt advice.
Money and Pensions Service (MaPS) is funding secured by the National Citizens Advice to increase the capacity of debt advice nationwide.
Access to Justice (Community Justice Fund) is funding to support the escalating impact of the cost-of-living crisis on Citizens Advice Watford.
Community Fund grant is National Lottery funding for generalist advice
Other represents other smaller restricted funds.
WATFORD CITIZENS ADVICE BUREAU
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
19
Analysis of net assets between funds
Unrestricted funds
Restricted funds
Total
Total
2024
2024
2024
2023
£
£
£
£
Fund balances at 31 March 2024 are represented by:
Tangible assets
-
-
-
2,316
Current assets/(liabilities)
355,059
77,455
432,514
393,524
Provisions and pensions
(2,649)
-
(2,649)
(5,672)
352,410
77,455
429,865
390,168
20
Related party transactions
There were no disclosable related party transactions during the year (2023 - none).
21
Cash generated from operations
2024
2023
£
£
Surplus for the year
39,697
30,414
Adjustments for:
Investment income recognised in statement of financial activities
(16,179)
(5,154)
Depreciation and impairment of tangible fixed assets
2,316
2,316
Difference between pension charge and cash contributions
(3,395)
(40,420)
Movements in working capital:
Decrease in debtors
1,951
423
Increase/(decrease) in creditors
4,702
(12,103)
Increase in deferred income
44,257
6,324
Cash generated from/(absorbed by) operations
73,349
(18,200)
22
Analysis of changes in net funds
The charity had no debt during the year.
2024-03-312023-04-01falsefalseCCH SoftwareiXBRL Review & Tag 2024.2054532622023-04-012024-03-31054532622024-03-31054532622023-03-31054532622022-04-012023-03-3105453262bus:FRS1022023-04-012024-03-3105453262bus:IndependentExaminationCharity2023-04-012024-03-3105453262bus:FullAccounts2023-04-012024-03-31xbrli:purexbrli:sharesiso4217:GBP