The trustees present their annual report and financial statements 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 Memorandum & Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
South Worcestershire Citizens Advice (SWCA) was incorporated as a limited company in 2011. The charity’s objectives are to promote any charitable purpose for public benefit by the advancement of education, the protection of health, the relief of poverty, sickness and distress in particular, but not without limitation, for the benefit of the communities within the South Worcestershire district areas of Malvern Hills and Wychavon.
The charity provides and assists with the provision of services providing free, independent, impartial and confidential advice and information to whoever should need it within our boundary areas. The trustees have paid due regard to the guidance issued by the Charity Commission, concerning public benefit, in deciding the activities the charity should undertake.
Our aim is to:
Provide the advice people need for the problems they face
Improve the policies and practices that adversely affect people’s lives
Our Mission
South Worcestershire Citizens Advice aims to reduce inequality, deprivation and the lack of access to justice due to a lack of knowledge of personal rights, by providing information, advice and support within the local communities.
SWCA believes everyone has the right to a fair chance of participating in society and will exercise a responsible influence on the development of social policies and services, both locally and nationally. We exist to shape a society where people face far fewer problems.
Our Vision
The charity aims to achieve its objectives by providing quality assured, free and trusted advice and information through a range of mediums to ensure accessibility for all and by being a well-informed influence and advocate on social policy issues that affect local people. We will continue to deliver advice on a wide range of issues including debt, benefits, housing, employment, welfare support, health and social care, and crime.
By addressing such issues and giving people access to the right kind of support and information we believe that we can create stronger and better connected communities, reduce the strain on public services and help people to live more economically active and healthier lives.
Achievements and performance in 2023/24
2023/24 has seen a continuation of the financial pressures felt by our communities due to the cost of living crisis and the relentless rising of costs of essential household goods. As we predicted, we have seen an upsurge in the number of people needing money advice as they simply cannot make their household budgets stretch far enough to cover all of the essentials.
Within this report we aim to demonstrate how, as a small, local charity South Worcestershire Citizens Advice continues to develop our services to react to the pressures and challenges faced by our local communities.
Although we have seen a reduction in the rates of inflation and energy prices from the peaks of last year, the effects of these costs are still being felt by hundreds of families across South Worcestershire who turn to Citizens Advice for help when they don't know where else to go. The continuation of the Household Support Funding from government as well as other welfare support packages is evidence that there is still a real need for this help. We have seen a significant increase in the number of people accessing our services in the last 12 months who have never needed to do so before. The ripple effect of the cost of living crisis is widening the net of destitution and plunging people into poverty who never previously would have experienced this.
Therefore, it has been incredibly important in the last 12 months to continue to deliver services in the heart of our communities and to be as accessible as we possibly can be. We know that demand for our services is high which adds pressure to everyone in the operational teams. But we have made a monumental effort this year to develop our services in an attempt to at least try to address the unmet demand issue that faces many charitable organisations in the current political and economic climate.
We have continued to deliver services from a number of foodbanks across both Malvern Hills and Wychavon districts, and this partnership is showing really positive results and we are delighted that we have been able to expand these projects further into the future by securing more funding from local grants or the Trussell Trust who are working to deliver their mission of living in a society where foodbanks are no longer required. Having this alignment in missions is an important factor in successful partnership working and something that we have continued to do well over the last 12 months. We will always strive to seek opportunities to work in collaboration with key stakeholders in a shared goal to improve the lives and opportunities of those living within our local communities.
We also had a visit from HRH Princess Anne in November 2023 who accepted our bid to come and visit us at our Malvern Office. The visit was to celebrate a number of longstanding staff and volunteers all of whom have dedicated between 25 and 30 years service to our organisation. This was a great opportunity to say thank you to our staff and volunteers, whilst also allowing for a PR opportunity to raise our profile further. We were also delighted to host Dame Clare Moriarty on the day who is the Chief Executive of National Citizens Advice and this was a welcome opportunity to put SWCA on the map in terms of the National Office. It also allowed our Chief Executive to make some valuable contacts within the National network.
Health related projects
Our health related projects have moved from strength to strength throughout 2023/24 and we have been able to secure further funding through Public Health and the local Primary Care Network (PCN) to expand these services to include the following services:
● Social Prescribing - increasing staff to 3.6 FTE
● Lifestyle Service - offering support with weight management, smoking cessation and drug/alcohol reduction
● Being Well Project - Joint working with Age UK to deliver mental health support across Malvern Hills and creating a non-medical pathway into mental health support
● The Circle Group - Support group for clients with mental health issues who need support whilst waiting for further intervention from NHS
We now have a team of 8 staff delivering these important projects managed by a Head of Health and Wellbeing Services post. The expansion and investment in these projects shows a confidence in the voluntary sector to deliver positive health outcomes for people in a non clinical way. We have been successful in securing some really great outcomes for many of the clients who have engaged in these services throughout the year.
However, we were disappointed to learn that the Lifestyle service was going to cease in its current format from 1st April 2024 and a new service was being procured through Public Health to deliver a similar service countywide. Healthy Worcestershire is due to roll out in Summer 2024 and we will work with partners to ensure that our clients still have access to these much needed services and that the skills we have within our staff team are utilised to the best of their ability.
The expansion of this team has brought some challenges in terms of office space as we quickly outgrow the space that we have. We have spent some time looking at alternative venues to deliver our health projects and some staff have taken the opportunity to create outreach working opportunities at venues such as GP practices, Community groups, warm spaces, youth centres etc. However, we would like to secure funding to look at a longer term lease of appropriate venues to continue and develop these services.
Funding and services
We remain a well-known and well-respected local charity who are relied upon by more people than ever before and it is important to everyone who works for the organisation that we remain accessible and open our doors to the people who need it the most. However, long term planning and sustainability is incredibly difficult at the current time due to the nature of many of the contracts/pots of funding that we receive.
The landscape of funding remains very unstable within the voluntary sector and we are seeing a more challenging picture than we have for several years due to the political uncertainty and the lack of funding for charities like ours. We need to ensure that we adopt a full cost recovery method to any funding applications as covering the cost of salaries alone is no longer enough to make contracts viable for us.
The recent annual review with Malvern Town PCN resulted in an extension of the contract for 12 months only rather than the 3 years we were hoping for. This is not, in any way, a reflection of performance, but rather an illustration of the situation of funding in general, across all sectors, public, statutory, voluntary and corporate. There is such a high level of uncertainty at the moment that funders are unwilling and/or unable to commit to any longer term funding as no-one is clear if budgets will be cut and by how much and in which areas, when a new government is formed later in 2024.
This makes things very difficult in terms of financial planning and being able to offer our staff team any longer term security as we are being forced to create short, fixed term employment contracts. We are mindful that this could put people off from entering the charitable sector as the lack of any permanent contracts is unappealing.
All this said, we have had a significant achievement this year in the renewal of the Worcestershire Advice network (WAN) contract. We are one of 7 partners within this group who deliver the Advice & Information contract on behalf of Worcestershire County Council. The contract was under review and out for procurement for 12 months but last summer we were awarded a 5 year contract to continue to deliver in this partnership and negotiated a 30% uplift in the contract value. These types of agreements are incredibly scarce and we were delighted to be successful in achieving this as the funding is unrestricted and makes a vital contribution to our core costs.
We were also successful in securing a significant grant from the National Lottery Cost of Living Grant Scheme which we are using to invest in the development of our Wychavon services which is much needed and is being welcomed by the District Council there who are keen for us to increase our footprint across the Wychavon district as a whole.
We do remain reliant on grants from Local Authorities and are acutely aware that this is something that in the future may not be available to us, so looking to diversify our income streams is a key priority for the year ahead.
Overall we remain positive about the relationships we have with our Local Authorities and the opportunities that this opens up for further collaboration and funding opportunities. Indeed, it is thanks to our successful delivery of the Household Support Fund (HSF) in Malvern Hills that we have been asked to deliver 2 other streams of welfare support in the form of a Discretionary Welfare Assistance Scheme and a Homes 4 Ukraine Welfare Assistance Scheme. Within both of these projects we are acting as an agent for Malvern Hills District Council (who are the principal) in delivering much needed financial support to clients who are moving into new social housing properties but who need support to gain the essential items associated with setting up a new home, i.e somewhere to sleep, something to cook on and somewhere to store food.
These contracts have given further opportunities to work collaboratively with both the local Housing and Homelessness teams and the Ukrainian Community across Malvern Hills. This increases our visibility and presence within local communities and enables us to reach more vulnerable people who need our help.
Our delivery of HSF has also enabled us to create new and valuable relationships with the Local Authority Revenues and Benefits teams who work with clients to collect Council Tax Debt. This still remains the most frequently asked about debt issue across our area so the opportunity to work more closely with the teams at MHDC is welcomed here.
Our Money Management and Money Advice workers are incredibly busy trying to help clients to balance their own books and find ways of reducing or getting out of debt. With the increase of the lasting effect of the pandemic on people’s mental health this has been harder than ever in 2023/24. As predicted by experts, the cost of living crisis does appear to be turning into a debt crisis and debt is not a quick fix. There are many complex reasons why people get into debt that need to be explored by our highly skilled advisers who are tasked with finding an appropriate solution for our clients, which is sometimes just not possible despite all the income maximisation work that can be done. We are still seeing an increase in the number of clients who are trying to manage a negative budget despite all of our best efforts.
We continue to offer services by telephone, email and face to face appointments and have a mix of staff and advisers working from office hubs, outreach locations and home working. We are working towards being available in more locations but need to balance this with the added pressure on management of juggling numerous outreach locations and all of the logistical and resourcing considerations that need to go alongside this.
It is important to the organisation that we continue to reflect on the service delivery methods and ensure that these are meeting the needs of our local communities. We continually review the client journey to ensure that processes are as streamlined, accessible and as free from bureaucracy as possible. We use our client feedback and feedback from partners to continually develop this and to introduce new ways of working when and where possible and appropriate.
Fundraising in 2023/24
Our fundraising activity in 2023/24 focussed on 2 events that are held annually and align with our strategic priorities of becoming more financially sustainable, promoting our brand and working with key partners. The events take the form of a Winter Charity Ball and auction and a Summer Family Funday. These events are aimed at very different demographics which is a conscious decision to help promote our brand as a charity across as wide a range of people and communities as possible. This year we decided to join forces with another local charity for the Winter Charity Ball which was a useful exercise in promoting relationships but did result in a lower income as we shared the profits. The Family Funday was our most successful yet and showed that there is a great deal of appetite for this type of family friendly engagement event even in the most deprived areas of our region. With the implementation of further management support in Wychavon we hope to run a similar event in this District next year as well as the Malvern event.
SWCA’s results for the year show a surplus of £96,725 (2023 - £10,260) on Unrestricted Funds. Unrestricted funds are used for core advice services at Droitwich, Evesham, Malvern, Pershore, Tenbury and Upton. As a result of this surplus, the balance of Unrestricted Funds at the end of the year was £414,845.
The Charity also managed several restricted funds in the year, which showed a combined surplus of £20,132 with a restricted fund balance of £115,336 to be carried forward for expenditure on the charitable activities of the restricted funds in 2024/25. The biggest activity within the restricted funds was grant making under the Household Support Funds which accounted for over £182,293 of income and expenditure in the year.
As can be seen in note 3 (Donations, grants and other charitable income) 90% (2022 - 91%) of the organisation’s funding has been derived from government sources.
Of the balance of Unrestricted Funds at the end of the year, £102,412 has been set aside as Designated Funds. This leaves a balance of £312,433 (2023: £228,075) as free reserves which is sufficient to meet the Board’s policy of maintaining reserves equivalent to at least 6 months’ worth of relevant expenditure.
As part of the annual strategic planning process, the Trustees regularly assess the major risks to which the organisation might be exposed. The principal medium-term risk continues to be that of funding shortfall in relationship to planned expenditure. The situation is monitored, and any changes or cutbacks would be planned for and implemented after appropriate consultation with all parties affected.
Other risks are mitigated by a variety of plans and scenario planning so that we keep ahead of negative as well as positive potential impacts.
Organisational Priorities 2024-25
SWCA recognises the importance of setting our goals and vision. We fully align with the National CitA mission and vision but recognise that as a small charity, it is important to identify our own strategic priorities. As funding cuts impact the National Citizens Advice service, it is more important than ever to move towards more collaborative ways of working to ensure we remain sustainable for the longer term. In order to align the activities in these plans and identify the operational actions required to support them, four strategic priorities have been identified to encompass our ambitions over the next 3 years:
● Work towards organisational financial stability
● Deliver quality services to local communities and campaign on the issues that affect people living within these communities.
● Protect and develop our profile
● Invest in our staff and volunteers
In terms of investing in our staff and volunteers, we have made some significant impact in the last 12 months by developing a training and recruitment team who have increased the number of training opportunities offered to staff and widened the scope of these sessions to include things such as suicide prevention, safeguarding, wellbeing and heartstart training. This demonstrates a commitment to adapt our training offer to align with the issues that are being presented by our clients.
We have also invested in a new member of the Senior Management Team in Wychavon which is a strategic decision aimed at addressing current pressures within these teams and looking at ways of developing our services across the Wychavon District.
Where appropriate we will look to further invest in our staff team, particularly in the support and supervision area as we are mindful that the needs of clients are more complex than ever, the pressures on staff are higher and the number of staff are growing year on year which puts further pressure on the management team.
We will continue to develop relationships with key partners and look to forge new relationships with other sectors. The importance of the voluntary sector in delivering against Local Authority key strategic priorities around health and wellbeing is more prevalent than ever before. As all partners delivering health outcomes including the NHS are being pushed towards looking at more preventative measures to reduce waiting lists, we know that we are well placed to deliver some impactful outcomes against these priorities. So it is imperative that we remain seen, trusted and able to deliver against these key objectives if we are to achieve our long term aim of financial stability.
We must continue to nurture and make new relationships with key delivery partners, funders and other community groups to remain relevant and ensure we are delivering a service that our local community requires. The work we have undertaken in setting up a Poverty Truth Commission within Malvern Hills shows our commitment to making our clients' voices heard and we look forward to seeing the development of this commission and the potential outcomes it could achieve.
We will continue to look at ways of developing our workforce through training and succession planning and strive to ensure that every member of staff and volunteer feels valued, and gives 100% commitment to our organisation.
There is no denying that the challenges that lie ahead are daunting in terms of funding and the future of the National Citizens Advice membership offer. But we can be proud, once again of what has been achieved and know that we are doing everything we can to put ourselves in the best position possible to remain relevant and accessible to our clients, to be a trusted partner and deliver outcomes for our funders and to be a supportive and nurturing employer for our staff and volunteer teams.
The charity is a company limited by guarantee governed by its Memorandum and Articles of Association.
The management of the organisation is the responsibility of the Trustee Board, all of whom are also directors of the company limited by guarantee. The maximum number of directors is fifteen and the minimum is five. The Trustees/directors are:
elected at the AGM (no more than ten elected Trustees in total);
co-opted by the Trustee Board provided that the total number of co-opted Trustees does not exceed one third of the total number of Trustees.
The Trustees manage the business and exercise all powers of the organisation. The Trustees may delegate any of their functions and duties to a committee of at least two Trustees. The Trustees may delegate the implementation of their resolutions and the day to day management of the affairs of the organisation to any person or committee in accordance with the Articles.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Organisationally we have seen some changes within the Trustee Board in 2023/24 and currently have an interim Chairperson and a new Treasurer in post. This has given the organisation an opportunity to look at the Trustee Board, which has seen a number of changes over recent years and seek ways to ensure the new Board has the opportunity to become familiar with, not only each other but the organisation as a whole.
Trustees are appointed from candidates deemed to have sufficient knowledge and experience of the organisation and its activities, and/or because they bring skills and knowledge that will strengthen the Board in its governance role. However, where necessary, Trustees receive additional induction and training in the workings of the charity at committee meetings.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
Day to day operational and management decisions are the responsibility of the Chief Executive Officer who is appointed by the Trustee Board and reports to the Chair. The organisation has 30 paid staff (31 March 2024) but is heavily dependent on volunteers who act as client advisors or who provide administrative support. The greatest contribution of our volunteers is their dedication, commitment and reliability. In addition to volunteer advisers and receptionists, we have people who provide all kinds of other support ranging from administrative to accounting to gardening. Thanks to our volunteers, our clients know that however they contact us, be it by phone, email or dropping-in, they will receive a professional and efficient service. They are confident that they will be listened to, that all aspects of their issue will be investigated and that they will be given sound and impartial advice. Without our volunteers South Worcestershire Citizens Advice Bureau could not exist.
It is the Board who determine the levels of remuneration for key management personnel taking into account similar organisations and market conditions.
We have, once again performed well in our leadership self assessment and retained the high scores that we achieved last year in our external assessment. Thanks to the high standard we set last year, this year’s assessment has been a less formal process but nonetheless, the trustee board have been pleased with the performance of the organisation against all of the areas included in the assessment and are confident that the quality marks that were gained last year are being upheld in all areas of work undertaken.
In accordance with the company's articles, a resolution proposing that Kendall Wadley LLP be reappointed as auditor of the company will be put at a General Meeting.
The trustees' report was approved by the Board of Trustees.
The trustees, who are also the directors of South Worcestershire Citizens Advice Bureau for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Opinion
We have audited the financial statements of South Worcestershire Citizens Advice Bureau (the ‘charity’) for the year ended 31 March 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records; or
we have not received all the information and explanations we require for our audit.
As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
an understanding of the risk assessment process (including the risk of fraud) adopted by the Board is obtained and their attitude to risk is ascertained;
an assessment of the susceptibility to material mis-statement of the financial statements as a result of management over-ride or fraud is made;
it is ensured that the engagement team have, collectively, the appropriate competence, capabilities and skills to be involved in the assignment, are fully briefed and understand the risks specific to the charitable company.
processes to test the outcomes of our assessment include, a review of Board minutes, analytical review, the relevance and accuracy of significant accounting estimates, substantive testing of significant transactions, work to identify unusual or unexpected accounting entries, including the testing of journal entries, information disclosed in the financial statements is traced to supporting documentation. In all instances it is acknowledged that material mis-statements that arise from fraud may involve deliberate concealment or collusion and are, therefore, by their very nature harder to detect than those arising from error.
an understanding of the legal and regulatory framework as applicable to the charitable company is obtained together with knowledge of the procedures put in place by the Board in order to comply with the same.
it is established if there have been any instances of non-compliance with applicable laws and regulations, where there are such breaches, a full understanding, including gathering of relevant documentation appertaining to the event is obtained and assessed.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Kendall Wadley LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
Donations, grants and other charitable income
Fundraising
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Donations, grants and other charitable income
Fundraising
South Worcestershire Citizens Advice Bureau is a private company limited by guarantee incorporated in England and Wales (company number 07881905) and a charity registered in England and Wales (charity number 1146772). The registered office is Community Centre, 52 Prospect Close, Malvern, Worcestershire, WR14 2FD.
The financial statements have been prepared in accordance with the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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.
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 and that there are no material uncertainties about its ability to continue. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Accounts are maintained for each fund.
Unrestricted funds comprise a "general" reserve which may be used for any of the bureau's activities.
Designated funds comprise of unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
A number of restricted funds are also maintained (where the activities are restricted by the provider of the fund), details are provided in the notes to the financial statements.
Income is included in the Statement of Financial Activities in the year in which the bureau becomes entitled to the income (not always the same year that it is received) and when its amount can be quantified with reasonable accuracy. Where income has been received to meet specific expenditure in future years, then this is treated as "income received in advance".
There is one "grant in kind" included in these financial statements relating to the rentfree provision for the bureau's Evesham office by Rooftop Housing Group Limited. An equal amount is included in "cost of charitable activities —property".
No value is attributed to the time given to the Bureau by volunteers. This time cannot be resold and any fair value attributed thereto would result in an overstatement of resources.
All expenditure is included on an accruals basis (being recognised when the liability has been legally or constructively incurred). No amounts are included for the resources provided by volunteers. "Cost of charitable activities" includes the costs of all employment, operating and property resources directly deployed to achieve the bureau's objectives, it also includes all governance costs.
Staff costs are allocated to the relevant project or bureau activity on the basis of estimated time spent.
Other costs are allocated to the relevant project or bureau activity on the basis of estimated use of resources.
All costs are shown inclusive of VAT which is not recoverable.
The bureau does not own any office accommodation, other property or vehicles. Fixtures and fittings are not capitalised due to the shortness of the property leases. Office furniture and equipment is not capitalised due to the negligible resale value.
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.
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.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
The pension cost shown in note 10 represents the employer's contributions to the personal pension funds of paid staff. For auto-enrolment, the CAB's staging date was 1 May 2017 and the NEST provider was selected. Some staff opted out and the CAB agreed to contribute to an existing scheme with Aviva Life Services UK Ltd. The funds are independent of the bureau's finances.
Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Liabilities
Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Agency arrangements
The Charity acts as an agent in distributing the Homes For Ukraine fund and the DWAS fund. Payments received from these organisations are excluded from the statement of financial activities as the Charity does not have control over the charitable application of the funds. Details of these funds is in note 15 to the financial statements.
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.
Donations, grants and other charitable income
Donations, grants and other charitable income
Fundraising
Volunteer costs
Operating costs
Property costs
Grants to individuals
Governance costs comprise of auditors fees £2,950 for the audit of the financial statements, meeting costs £759, other fees for preparing the annual report of £500 and filing costs of £13.
One Trustee has been paid remuneration from their employment with the charity. Annie Robson was remunerated for her role as Chief Executive Officer. Remuneration was £44,000 (2023: £22,635) plus employer pension contributions of £2,200 (2023: £1,132).
None of the trustees claimed for or received expenses as a result from carrying out their responsibilities. The wife of S Molyneux was employed by the charity prior to his appointment as trustee and continues to remain in post.
The average monthly number of employees during the year was:
In addition to the paid staff, approximately 72 part time volunteers were employed to support bureau activities (2023 - 73). The only associated costs included in these financial statements are for training, travel and insurance.
No (2023 - no) member of staff receives emoluments in excess of £60,000.
The remuneration of key management personnel (including employers National Insurance and pension costs) was £146,358 (2023 - £52,949).
Key management personnel is defined as; the CEO, deputy CEO, finance manager and the general manager.
The number of full time equivalent staff is 17 (2023 - 13).
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.
This year a transfer of £5,000 was made from unrestricted to designated funds for the purpose of building maintenance at Evesham office. A further £11,000 was transferred from unrestricted to designated funds for implementation of the IT strategy.
In the prior year, following the repayment of the universal credit grant a transfer was made from unrestricted funds to restricted funds to cover this deficit.
Deferred income of £2,250 (2023 : £nil) is included above and relates to grant income received in advance.
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes, all other restricted monies received in the period were fully expended:
Resources expended
Resources expended
Restricted Funds are subject to restrictions on the expenditure imposed by the source of the funds.
Lifestyle Advisor Service - to provide a client centred Lifestyle service to patients within the Malvern Town Primary Care area.
National Grid CM - to provide advice sessions to tackle fuel poverty in rural areas.
Sundry Small Restricted - various small restricted donations.
Malvern Hills Foodbank - to provide advice and information aimed at income maximisation to users of the Malvern Foodbank.
Pershore Food Bank - to provide advice and information to users of the Pershore Foodbank.
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MAPS - to assist members of the public with the management of debt.
Debt Modernisation Fund - to purchase new IT equipment for debt caseworkers.
Household Support MHDC - to provide grants to households in need in Malvern Hills District.
Household Support Wychavon - to provide grants to households in need in Wychavon District.
Alternative to Healthy Minds - to provide an additional local service to improve mental health and wellbeing for patients within the Malvern Town Primary Care area, while reducing pressure on the Healthy Minds service.
Ledbury Foodbank - to provide advice and information to users of the Ledbury Foodbank to address underlying issues that may lead to over reliance on the use of the foodbank and to address underlying poverty.
Money Management Debt Assessment - to deliver money management advice to clients referred by 'Act on Energy' or other partners of Worcestershire County Council.
Being Well - to work with partners to develop a non-medical mental health pathway for Malvern Hills District.
Cost of Living Sub Grant - to support or increase direct service delivery capacity to help clients through the cost of living crisis.
Ukrainian Support to Claim - to provide advice for Ukrainian refugees to claim the benefits that they are entitled to.
Food Bank Droitwich - to work in partnership to provide a range of information and advice support aimed at income maximisation for foodbank clients.
Homes for Ukraine - to provide a package of support and assistance to Ukrainian households who have been displaced from Ukraine and have moved on from their initial host family in Malvern Hills District.
Social Prescribing - to link patients within the Malvern Town Primary Care area with non-medical support to address needs in an holistic way.
UK Shared Prosperity Funding - to recruit and train higher numbers of volunteers in Wychavon District.
Community Organisations Cost of Living Fund - to support or increase direct service delivery capacity to support clients through the cost of living crisis.
The following restricted funds received as agent are as follows;
| Income | SWCAB fees | Grants paid | Funds held as agent 31/03/2024 |
DWAS Homes for Ukraine | £ 33,501 104,873 | £ - (19,873) | £ (27,370) (70,344) | £ 6,131 14,656 |
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DWAS - for the allocation of discretionary welfare assistance to district residents.
Homes for Ukraine - to provide a package of support and assistance to Ukrainian households who have been displaced from Ukraine due to the ongoing conflict with Russia and who have secured a tenancy through social housing after having moved on from their initial host family and who have been identified by the funder and referred to the recipient.
The trustees have identified a level of minimum reserves in order for the charity to be able to operate, relocate and re-furbish premises, such sums have been designated from general reserves.
Two new designated funds have been created, £5,000 for building maintenance at the Evesham office and £11,000 to implement the new IT strategy.
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
There were no disclosable related party transactions during the year (2023 - none).
The charity had no debt during the year.