The trustees present their annual report and financial statements for the year ended 31 March 2025.

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 charitable company's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

The charity's objects are to promote any charitable purpose for the public benefit by the advancement of education, the protection and preservation of health and the relief of poverty, sickness, and distress in particular, but without limitation, for the benefit of the community in Merseyside and surrounding areas.

Aims, objectives, strategies and activities for the year

The aims of Citizens Advice Sefton are to provide advice people need for the problems they face and to improve the policies and practices that affect people’s lives. We abide by the principles that the service we offer to the public should be free, independent, confidential, and impartial. We also strive to ensure that as an organisation we value diversity, promote equity and challenge discrimination.

We are here to help people navigate the complexities and challenges of daily life, to address inequality and discrimination and to find a way forward. We do this is multiple ways;

• Providing free, independent, impartial and confidential advice on the issues people face such as lack of income to meet basic needs, rising debt, insecure employment and housing, lack of access to legal aid to challenge benefit decisions and a range of other issues which are often linked such as family breakdown.

• We explore how issues are affecting our clients and identify how they can benefit from other services we offer such as Mind and Money to address financial wellbeing and confidence in the long term.

• Providing energy advice and exploring how to improve energy efficiency and change tariffs.

• We work with local partners to provide holistic support for a client and their family to address health inequalities and child poverty.

• We work alongside local partners such as Foodbanks who provide crisis support, working in the community to maximise income and reduce debt of the people who seek help.

• We work regionally in Sefton, Liverpool, Knowsley, Wiral, St Helens, Halton and Warrington with our Citizen Advice partners and Raise in Liverpool to provide debt advice and support to the public.

• We also work across the Liverpool city region with The Women’s Organisation, the 6 Citizen Advice partners, Vauxhall Law Centre and Pennywise to provide a Mind and Money Service aiming to help households within the Liverpool City Region in need of financial and personal resilience, welfare, debt management and confidence building through practical support and advice

• We raise awareness of issues not just through our national organisation Citizens Advice but locally, a good example being working with our local MP Peter Dowd in Bootle to promote the take up of pension credit and running local take up events to maximise income for local constituents.

The people who use our service are diverse with different needs and we aim to be accessible by offering advice and support in a range of different ways

• A drop in and appointment service in our offices in Bootle and Southport

• An appointment outreach service in Maghull Advice Centre

• A telephone helpline (national Adviceline)

• Information links on our website for those with digital access

• Supported or self help access to online services and information through our offices in Bootle and Southport

• On site advice within community venues such as foodbanks and in Netherton in the L30 Community centre.

• A service within Clock View, a Mersey Care (Mental Health) Trust hospital

• Working with the Mental Health Navigation service providing a referral service for the Community Mental Health team to support people with debt, housing and benefits advice

• A referral service for our partners in Living well Sefton to address the poverty which is impacting on the wellbeing and health of local people.

• Working on site with Sefton at Work to provide a benefits advice service to the people SAW support to improve their employment prospects

• A tribunal representation service for people to give them a voice to challenge benefit decisions which unfairly impact them and for which legal aid is not available.

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

The principal activity of Citizens Advice Sefton is the provision of free, confidential, independent, and impartial advice, information, and counsel for members of the public.

Our volunteers work directly with members of the public offering advice and information on a wide range of issues , they also work behind the scenes on social policy issues gathering evidence on the impact of policies and legislation on the lives of local people and contribute to Citizens Advice data insights nationally.

We have continued to work with the University of Liverpool providing 10 week placements for law students who are an integral part of our volunteer team.

The directors/trustees are also volunteers bringing their expertise and giving their time to ensure sound governance, financial management and strategic direction of the charity.

In 2024/25, thirty-six volunteers were actively engaged throughout the year. We have used the socio-economic value tool created to evaluate charity effectiveness by Bayes Business School to determine that donated time to Citizens Advice in Sefton was worth £254,721 in 2024/25. Volunteers on average work one day per week, a serious commitment to the charity. The value of the time donated is proxied by the average hourly cost of employing a worker in the UK economy (This is a typical approach used in academic and grey literature when valuing volunteers time).

Our volunteers make a positive impact on the lives of local people, and they add social value for society through the advantages and savings associated with having happier, healthier, and more productive members of the community.

Our volunteers and employees work tirelessly to support the people who need our services. Both volunteers and paid advisers work across a wide range of issues as can be seen in Table 1 below.

We provided advice and assistance to 6,327 clients in 2024/25 which is an increase of more than 500 unique people who sought our help in the previous year. In Citizens Advice we count unique people for a period of time, (in this case 12 months), Table 1 below shows a higher number of clients in the same period and this number reflects multiple issues clients ask for help with. Overall we helped people with 31,305 issues and Table 1 shows the variety of those issues. Benefits remain our highest demand for help and the number of Universal Credit issues our staff and volunteers dealt with rose by 42% during the year. This reflects the impact of the transition from legacy benefits to Universal Credit and this will continue to have an impact into 2025/26.

The figures for debt are reduced from the previous year but this has little to do with demand and more to do with unfilled vacancies in our specialist team during the earlier part of the year. As partners in GMMAP we were able to refer clients for assistance to other providers in the area. We have since recruited new employees to train as money advisers and the team has returned to full strength. Despite a depleted team we were still able to achieve significant outcomes for clients with debts written off.

The vast majority of our clients seek our help with benefits, debt and increasingly housing issues. Our service is open to all ages and most of our clients are of working age. People who are disabled or have a long term health condition made up 68% of our client profile in 2024/5.

Note; ‎This figure reflects people who are helped with more than one category of enquiry and is not the same as the unique client count on page 2.

The Impact of advice

The work of our staff and volunteers resulted in the following financial outcomes for clients

• Income Gain of £7,605,247 (of which £1,051,693 were one off payments)

• Reimbursements £21,526

• Debts written off £1,367,784

• Repayments rescheduled £9,616

• Other financial gains £1,347,331 (of which £38,582 were one off payments)

Much of our work is tangible and measurable but there are other outcomes which are also important, such as reducing stress and anxiety and helping people make a fresh start without the weight of multiple debt reducing their ability to cope. There are also wider community and health benefits such as helping people to prioritise essential bills for example, council tax and bringing money back into the community and helping to reduce health inequalities for local people. We believe that people can address longer term wellbeing and health issues when they get help to mitigate the barriers they face such as financial, employment and housing insecurity.

The results for the year and the charity's financial position at the end of the year are shown in the attached financial statements.

Total income for the year ended 31 March 2025 was £1,099,300 (2024: £1,134,189) which included unrestricted income of £279,390 (2024: £289,380) and restricted income of £819,910 (2024: £844,809).

Total expenditure for the financial year was £1,125,036 (2024: £1,115,152) which included unrestricted expenditure of £305,126 (2024: £270,343) and restricted expenditure of £819,910 (2024: £844,809).

The result is a net deficit of £25,736 for the year ended 31 March 2025 (net surplus for 2023/24 of £19,037).

The general unrestricted funds of the charity at 31 March 2025 were £573,102 (2024: £598,838). There are no restricted funds at the year end. The trustees continue to comply with the policy of being capable of funding 3-6 months working capital requirements. The free reserves of £457,366 meets the minimum target of 3 months expenditure and the trustees consider this level to be sufficient in the short term but they are looking at ways to increase free reserves going forward.

The designated premises reserve at 31 March 2025 was £69,741 (2024: £77,535). These reserves have been designated by the trustees for premises improvements and are being written off over the life of the refurbishments of the new office.

Our work is supported by a diverse range of funders and the Directors extend their gratitude to: 

Sefton Borough Council for its long term support of our core service enabling Citizens advice Sefton to provide services across the borough. 

Living Well Sefton a partnership led by Sefton Council for Voluntary Service and supported by Public Health Sefton MBC. 

The Trustees of The Freshfield Foundation who fund Citizens Advice Sefton and Citizens Advice Liverpool to provide tribunal representation and support to people who would otherwise find themselves without access to justice as this works falls outside the scope of the legal aid scheme. 

Integrated Care Partnership Merseyside and Cheshire for supporting vital work with a vulnerable client group in Clock View in-patient mental health hospital. 

Sefton Mental Health Navigation Service which supports us to actively engage with people who have enduring mental illness and support them to maximise income, reduce debt and advise on a range of social welfare issues. 

Money Advice and Pensions Service who fund the Greater Merseyside Money Advice Partnership (GMMAP) which enables Citizens Advice Sefton to deliver money advice services in Sefton. 

The Cadent Foundation and L30 Community who support the outreach service in Netherton. 

The Trussell Trust and St Leonard’s who support the outreach service within the Foodbanks.  

Liverpool Combined Authority for funding The Mind and Money programme, a city region partnership led by The Women's Organisation and aimed at providing support, advice and guidance to people impacted by the cost-of- living crisis across the region. 

Maghull Town Council for supporting the advice service in the Maghull Advice Centre.  

Sefton At Work for support to provide an outreach benefits advice service  

Citizens Advice for the innovation grant to support the development of housing advice. 

VOLA for the provision of a grant from the Liverpool City Region UKSPF Digital Connectivity for Community Facilities grant to enable digital access to online services for local people within our offices in Bootle and Southport. 

As required in its governing document paragraph 5.11 in furtherance of its objects, and for no other purposes, the charity has the power to invest the monies of the charity not immediately required for its purposes in or upon such investments, securities or property as may be thought fit, subject nevertheless to such conditions and such consents as may for the time being imposed or required by law.

Citizens Advice Sefton has worked on a risk management exercise. A risk management strategy and risk register are agreed by the board. The trustees recognise that any major risks to which the charity is exposed need to be reviewed and systems put in place to mitigate those risks. To that end Citizens Advice Sefton is continually monitoring and managing the risk and reviewing the risk register to ensure action plans are put in place to mitigate key risks.

Citizens Advice Sefton has adopted the recommended Citizens Advice Information Risk policy. The trustees review any non-compliance with procedures and any data breaches. There were no incidences to report in 2024/25.

We remain committed to developing and modernizing our service. We recognise that people will always need face to face advice and we will offer that alongside new ways of working. We are investing in the design of a chatbot service to help people with debts chat in real time about the issues they are facing. This 24 hour service will run alongside our traditional money advice services. The design of a tailored AI-powered chatbot is currently in development and we plan to feature it on our website to enhance access to debt advice services, particularly for neurodivergent individuals and working-age clients impacted by the cost-of-living crisis. The chatbot will offer self-service triage, initial emergency guidance, and signposting—available 24/7. It represents an investment in digital infrastructure that will modernise how people engage with our service, reduce pressure on advice lines, and make support more accessible to those who currently struggle to engage through traditional channels.  The project is supported by the Money Advice and Pension Service.

Citizens Advice Sefton is a registered charity and a company limited by guarantee. It is also known and referred to as Sefton CAB.

It is governed by a Memorandum and Articles of Association 2003 as amended on 15th January 2008 and October 2022 and was incorporated under the Companies Act as a private company on 11th June 2003. The changes made in October 2022 have increased the maximum liability of each member to £10.

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:

Trustees, who are also Directors of the Company, are elected in accordance with the Memorandum and Articles of Association. An Executive Group made up of Trustees and chaired by the Chair is established to oversee the elections process for Board appointments. A separate process agreed by the Trustee Board is followed for the election of the Chair. No other persons or bodies external to the charity were entitled to appoint persons to the Trustee Board.

New Trustees follow a programme of induction into the Citizens Advice service and are issued with an induction pack.

Citizens Advice Sefton is governed by its Trustee Board which is responsible for setting the strategic direction of the organisation and the policy of the charity. The Trustees carry the ultimate responsibility for the conduct of Citizens Advice Sefton and for ensuring that the charity satisfies its legal and contractual obligations. Trustees meet at a minimum quarterly and delegate the day-to-day operation of the organisation to senior management. The Trustee Board is independent from management. A register of Directors' interests is maintained at the registered office and is available to the public.

Pay scales for senior staff are benchmarked against similar posts in the Citizens Advice network.

Citizens Advice Sefton is a member of Citizens Advice, the operating name of the National Association of Citizens Advice Bureaux, which provides a quality framework for standards including advice and casework management as well as assessing compliance against these standards. Operating policies are independently determined by the Trustee Board of Citizens Advice Sefton in order to fulfil its charitable objects and comply with the national membership requirements.

The charity also co-operates and liaises with a number of other statutory and voluntary services, local and national charities on behalf of clients. Where one of the Trustees holds the position of Trustee/Director of another charity they may be involved in discussions regarding that other charity but not in the ultimate decision-making process.

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

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

Small company provisions

This report has been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

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

The trustees, who are also the directors of Citizens Advice Sefton 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

- select suitable accounting policies and then apply them consistently;

- observe the methods and principles in the Charities SORP;

- make judgements and estimates that are reasonable and prudent;

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

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company 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 charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Opinion

We have audited the financial statements of Citizens Advice Sefton (the ‘charitable company’) for the year ended 31 March 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the charitable company's affairs as at 31 March 2025 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

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

Basis for opinion

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

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

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

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

Other information

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

the directors' report included within the trustees' report has been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report.

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

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

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

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

the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' report and from the requirement to prepare a strategic report.

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charitable company 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 charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our 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.

Capability of the audit in detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

The following laws and regulations were identified as being of significance to the entity:

• Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and Charity Law.

• Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the charity and therefore may have a material effect on the financial statements include compliance with charitable objectives, public benefit, fundraising regulations, safeguarding and health and safety legislation.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and the Trustees as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of Trustee meeting minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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 charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Investments

Raising funds

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

Citizens Advice Sefton is a private company limited by guarantee incorporated in England and Wales. The registered office is 297 Knowsley Road, Bootle, Merseyside, L20 5DF.

The financial statements have been prepared in accordance with the charitable company's Memorandum and Articles of Association, 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 charitable company is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charitable company. 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 charitable company 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.

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

Restricted funds are subject to specific conditions by donors or grantors 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.

Cash donations are recognised on receipt. Other donations are recognised once the charitable company 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.

All expenditure is accounted for on an accruals basis. Direct staff costs relating to each area of service provision are attributed to the relevant activity. Other costs including general management, finance and administration, together with overhead costs, have been apportioned to the core activities on the basis of their actual or estimated share of resource utilisation, as appropriate.

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:

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

At each reporting end date, the charitable company 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).

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/expenditure for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

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.

The charitable company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charitable company's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.

If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charitable company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities, including creditors 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.

Financial liabilities are derecognised when the charitable company’s contractual obligations expire or are discharged or cancelled.

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

Provisions are recognised when the charitable company has a legal or constructive present obligation as a result of a past event, it is probable that the charitable company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in net income/(expenditure) in the period in which it arises.

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 charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

The charity offers defined contributions to employees' personal pension funds at the rate of 7% of gross salary and these are charged to expenditure in the period to which they relate.

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

In the application of the charitable company’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. The trustees consider that there are no key sources of estimation uncertainty.

Activities for generating funds

Investments

Premises costs

Telephone

Printing, postage and stationery

Training and travel

Publicity and information

Equipment, support and leases

Sundry expenses

Bank charges

Partner payments

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charitable company during the year (2024: £nil).

During the year, the trustees received a total of £nil (2024: £nil) in expenses from the charity.

The average monthly number of employees during the year was:

The remuneration of key management personnel was as follows:

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.

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

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

Living Well Sefton - a restricted fund for the provision of both; social welfare advice across Healthy Living Centres, the Living Well Centre and three GP hubs; and health and wellbeing assessments supporting people who may experience stress, anxiety or depression and who are at risk at developing mental health problems.

Greater Merseyside Money Advice Project - a restricted fund for the provision of money advice services.

The Mind and Money Programme is a restricted fund for the provision of support for people facing challenges as a result of the cost-of-living crisis through financial resilience support, welfare benefits and money advice as well confidence building   The Financial Resilience programme is led by the Women's Organisation who are responsible to Liverpool City region Combined Authority for delivering the project. 

The Freshfield Foundation - a restricted fund for the provision of welfare rights advice with Liverpool Citizens Advice Partnership.

Citizens Advice Housing Advice - a restricted fund for the provision of housing advice for Sefton residents around disrepair, illegal, s.21 and s.8 eviction, homelessness, tenant deposits and tenancy agreements working in partnership with Sefton Councils Housing Commissioner and Housing Options Team and the development of workshop for residents and frontline third and public sector staff and volunteers on housing rights. 

Citizens Advice Energy Advice is a restricted fund for one to one energy advice appointments to Sefton residents who are in or at risk of fuel poverty, often vulnerable and may be struggling to pay their bills.

St Leonards Foodbank - a restricted fund for the provision of welfare benefits advice within the foodbank.

NHS Cheshire and Merseyside Integrated Care Board (ICB) - a restricted fund for an NHS standard contract.

Advice Skills Academy - funded as part of a partnership to develop and upskill the workforce for specialist advice services in the Liverpool City Region.

L30 Community Centre - a restricted fund for the provision of welfare benefits advice within the community centre.

L30’s Millions is supported through Big Local and administered by Local Trust for the Big Lottery Fund to support an advice outreach session in Netherton until October 2023.

UKSPF Placements

Funding to provide work experience and training for job seekers over a 20-week period to improve confidence and skills for job seekers registered with Sefton at Work.

Maghull Town Council

Funding for the provision of a generalist advice service within Maghull Advice Centre.

Sefton at Work

Funding to provide social welfare law advice within the offices of Sefton at Work to help remove barriers to employment and training.

VOLA

Funding to improve digital connectivity for people in Southport and Bootle who need assistance to access the internet to engage with services and access support.

Mental Health Transformation Fund

Funding to provide practical support and advice to maximise income and minimise debt to mitigate the effects of the cost-of-living crisis with practical advice and guidance for patients referred by the Community Health and Recovery teams in Sefton.

Other funds include the Energy Advice Programme - a restricted fund for the provision of energy advice to advise clients on energy related matters. Also included is Community Foundation for Lancashire and Merseyside - a restricted fund to provide face to face welfare benefits advice within Southport Community Centre.

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Designated premises fund - these reserves have been designated by the trustees for premises improvements and are being written off over the life of the refurbishments of the new office.

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

There have been related party transactions in accordance with FRS 102. There were transactions between Citizens Advice Sefton and Citizens Advice in relation to membership, insurance and information systems.

There were no other related party transactions in the year.

The charitable company had no material debt during the year.