REGISTERED COMPANY NUMBER:
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REGISTERED CHARITY NUMBER:
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GLASGOW NORTH WEST CITIZENS ADVICE |
SERVICE LTD |
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AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 |
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REGISTERED COMPANY NUMBER:
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REGISTERED CHARITY NUMBER:
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GLASGOW NORTH WEST CITIZENS ADVICE |
SERVICE LTD |
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AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 |
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GLASGOW NORTH WEST CITIZENS ADVICE |
SERVICE LTD |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2021 |
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Report of the Trustees | 1 | to | 5 |
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Report of the Independent Auditors | 6 | to | 9 |
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Statement of Financial Activities | 10 |
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Balance Sheet | 11 |
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Cash Flow Statement | 12 |
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Notes to the Cash Flow Statement | 13 |
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Notes to the Financial Statements | 14 | to | 25 |
GLASGOW NORTH WEST CITIZENS ADVICE |
SERVICE LTD (REGISTERED NUMBER: SC202642) |
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REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 MARCH 2021 |
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The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). |
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OBJECTIVES AND ACTIVITIES |
Objectives and aims |
Our mission is to end poverty and inequality in our communities, by ensuring that people from all backgrounds are empowered through access to advice and support that helps them affect positive change in their lives and the lives of those around them. |
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GNWCAB will continue to deliver advice and information services and be a leading light in terms of Covid recovery in the north-west of Glasgow through delivering relevant and responsive advice services. We will contribute locally and nationally to the development of services and policies that address issues that existed pre-Covid, and emerging issues faced by people across the country including, but not limited to: |
o Debt |
o Financial inclusion |
o Housing |
o Employment and employability |
o Health inequality |
o Immigration and rights to residency |
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ACHIEVEMENT AND PERFORMANCE |
Charitable activities |
An extensive list of projects and services have been delivered by the staff and volunteer team at GNWCAB during 2020-21. |
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In what has been a most challenging year, our work continues to be innovative and we have built on our various partnerships, working across the Citizens Advice Bureau network and beyond. With some fortune, we have been working to a strategy of developing additional channels for delivering advice, and this positioned us well for the living and working restrictions that arose due to the Covid crisis. As a result we are proud of the fact that we remained available to support our community throughout with telephone and internet based chat services on the occasions when our offices were closed to us and / or the public. |
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It has been another very busy year where we have provided support in almost 9,100 cases and to over 2,700 new clients across the north-west of Glasgow. The shape of the demand altered significantly, with a temporary reduction in the volume of debt advice due to the various short term moratorium policies introduced by the government, but a significant increase in the volume of people seeking support with benefits and employment advice. |
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Of course, increasing demand does not immediately correlate to the availability of resource to meet that demand, and we remain immensely grateful for the support and flexibility of our staff, volunteers, funders and partners without whom we simply could not provide the services we do for our communities. Thanks also go to our elected members, MPs, MSPs and Councillors who continue to provide support and provide advocacy for GNWCAB services. We also plan to build on the constructive partnership working we have encouraged and experienced across the Citizens Advice Scotland network, and with a wide range of community organisations that we work and engage with across the city. |
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We continue to enjoy the benefits of having a diverse Board with a broad range of professional skills ranging from fundraising, legal, financial, marketing to management of processes and risk. The ongoing strategy work has proven invaluable and has guided us as we navigated the unique challenges presented to us this year. We will endeavour to take GNWCAB from strength to strength. The communities of the north-west of Glasgow deserve nothing less. |
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GLASGOW NORTH WEST CITIZENS ADVICE |
SERVICE LTD (REGISTERED NUMBER: SC202642) |
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REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 MARCH 2021 |
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FINANCIAL REVIEW |
Financial position |
The charity's total income for the year amounted to £995,936 (2020: £778,589). The charity incurred total expenditure of £936,716 (2020: £744,375) and had a deficit of £nil (2020: £212) on restricted funds and a surplus of £42,594 (2020: £34,426) on unrestricted funds, giving an overall surplus of £59,220 (2020: £34,214). |
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Unrestricted reserves at the year end were £345,856 (2020: £303,262), of which £40,000 (2020: £40,000) was designated for future development costs. Restricted funds at the year end were £17,619 (2020: £17,619). |
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Reserves policy |
The GNWCAB Board has reviewed the circumstances of the charity and considers adequate resources to continue to be able to fund the activities of GNWCAB for the foreseeable future. The GNWCAB Board is of the view that the charity is a going concern in light of inevitable changes to the structure of our core funding and with other major funding streams running on a twelve-month basis. The GNWCAB Board is therefore committed to preserving the current position of the charity's three to six months' reserves, which includes redundancies and notice costs, and other binding financial and legal obligations. Based on the current level, this would equate to approx £220k to £440k. At 31 March 2021, the charity's unrestricted reserves were £279,394 (2020: £233,582) after making allowance for £40,000 (2020: £40,000) of funds designated for future spending as described above and £43,088 (2020: £29,680) tied up in fixed assets. |
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The Trustees operate a policy of not committing the charity to any expenditure unless this is matched by either grants received or receivable. |
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STRUCTURE, GOVERNANCE AND MANAGEMENT |
Governing document |
The charity is controlled by its governing document, the Memorandum & Articles of Association, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. |
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Recruitment and appointment of new trustees |
As set out in the GNWCAB Articles of Association, the Chair of the Trustees is nominated by the Board along with the Vice Chair, and the Company Secretary. Trustees have the power to co-opt up to eight further Directors to the GNWCAB Board. |
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Organisational structure |
The Board of Trustees, which can have up to ten Directors, administers GNWCAB. The Board meets five times per year and there is the Finance, Risk & Audit sub-committee (FRAC) that also meets five times per year and for which the Vice Chair is also the Chair. A CEO is appointed by the Trustees to manage the day to day operations of the charity. To facilitate effective operations the CEO has delegated authority, within terms of a Scheme of Delegation approved by the Trustees, for the strategic direction of operational matters including finance, HR and employment. |
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Induction and training of new trustees |
New Trustees undergo orientation to brief them on their legal obligations under charity and company law, the content of the GNWCAB Memorandum and Articles of Association, the Committee and decision making process, the GNWCAB business plan (2020-23) and recent financial performance of the charity. During the induction process, new Trustees will meet with the key employees and Trustees. |
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Related parties |
GNWCAB is a member of CAS (more specifically the Scottish Association of Citizens Advice Bureaux, SACAB). SACAB governs GNWCAB membership and there is a regular quality assurance audit of advice and operational inspection to ensure that CAB membership can be retained. |
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GLASGOW NORTH WEST CITIZENS ADVICE |
SERVICE LTD (REGISTERED NUMBER: SC202642) |
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REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 MARCH 2021 |
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STRUCTURE, GOVERNANCE AND MANAGEMENT |
Risk management |
As stated above, a FRAC group has been established and oversees, with the CEO, the accounts and risk issues. GNWCAB now keeps a robust risk register covering all major areas of internal and external risk. FRAC meets 5 times per year, approx. 2 weeks ahead of Board meetings, and reports to the Board on any issues of concern and the strategic options available to the Board in their broad remit. The Board is then able to make a fully informed decision in relation to any issues regarding finance and risk. A financial report is also delivered at each Board meeting by the FRAC chair. |
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Key Current Risks |
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Financial sustainability: GNWCAB continually monitors accounts to ensure that income is sufficient for planned expenditure month to month , and on a longer term 3 year business planning basis. GNWCAB has recruited a Business Development Manager as par t of the senior management team with a specific remit to undertake fundraising and income generation. Our reserves p olicy set out above underscores our commitment to prudent financial management against the turbulent backdrop of thir d sector and public services funding whilst ensuring we invest in the right resources to generate income on an ongoing basis . |
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Operations and business continuity: GNWCAB has developed processes that ensure its operations are sustainable in the event of significant shock or event . These processes were effectively put into action after the nationwide lockdown due to Covid-19 in March 2020. GNWCAB's se nior management team oversee the rollout of a new web chat platform, and redistribution of phone lines allow for remote working across the paid staff team. |
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Quality of advice and liability: GNWCAB through its training, membership and quality of advice audits through Citizens Advice Scotland, accreditation of Scottish National Standards, and registration with the Financial Conduct Authority adheres to strict practices that ensure q uality of advice is consistently high and risk of liabilities relating to incorrect or insubstantial advice are low. During 2020/21, G NWCAB significantly reviewed its own internal quality of advice framework to ensure consistent case checking and supp ort for paid staff and volunteers undertaking financial casework |
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Covid-19 |
As refers above, GNWCAB through both business continuity planning and our strategic objective to move towards more digitalised services reducing the need for face to face, has been well positioned to meet the operation challenges that Covid-19 has presented to organisations across the charitable sectors. GNWCAB jas invested in telecommunications and a support infrastructure across its paid team that ensures we are able to continue to advance the objects of the organisation and provide our vital services to those most in need. |
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In broad, keeping with other organisations in the sector, we are continually reviewing the shape and scope of our services as society adjusts to an altered socio-economic landscape over the coming years, and our business development strategy has been shaped to ensure that we are responsive to need and ready to consider new opportunities across funding streams, partnerships and new ways of working. GNWCAB notes the flexibility of its key funders during this period in allowing us to make quick financial decisions responsive to the needs of continuing our services without interruption. |
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REFERENCE AND ADMINISTRATIVE DETAILS |
Registered Company number |
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Registered Charity number |
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GLASGOW NORTH WEST CITIZENS ADVICE |
SERVICE LTD (REGISTERED NUMBER: SC202642) |
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REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 MARCH 2021 |
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Registered office |
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Trustees |
A MacKenzie (Chair) |
A Keachie (Vice Chair) |
E W Gray |
S P Benton |
L Lovatt |
S Shahid |
V Anderson |
E Vanderhoven |
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Company Secretary |
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Auditors |
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Statutory Auditor |
Chartered Accountants |
Caledonia House |
89 Seaward Street |
Glasgow |
G41 1HJ |
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Banker |
TSB |
Glasgow North Branch |
1105 Maryhill Road |
Glasgow |
G20 9AY |
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Key management personnel |
R Gallagher | - | CEO and Company Secretary |
A Cully | - | Advice and Projects Manager |
R Tracy | - | Business Development Manager |
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STATEMENT OF TRUSTEES' RESPONSIBILITIES |
The trustees (who are also the directors of Glasgow North West Citizens Advice Service Ltd for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" |
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GLASGOW NORTH WEST CITIZENS ADVICE |
SERVICE LTD (REGISTERED NUMBER: SC202642) |
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REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 MARCH 2021 |
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STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued |
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to |
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- | select suitable accounting policies and then apply them consistently; |
- | observe the methods and principles in the Charity SORP; |
- | make judgements and estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. |
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The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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In so far as the trustees are aware: |
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- | there is no relevant audit information of which the charitable company's auditors are unaware; and |
- | the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. |
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AUDITORS |
The auditors, Martin Aitken & Co Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
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Approved by order of the board of trustees on
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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES AND MEMBERS OF |
GLASGOW NORTH WEST CITIZENS ADVICE |
SERVICE LTD |
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Opinion |
We have audited the financial statements of Glasgow North West Citizens Advice Service Ltd (the 'charitable company') for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. |
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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 2021 and of 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, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended). |
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Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and the provisions available for small entities, in the circumstances set out in note 18 to the financial statements, 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. |
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Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
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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. |
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Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. |
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Other information |
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. |
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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. |
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In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Report of the Trustees has been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES AND MEMBERS OF |
GLASGOW NORTH WEST CITIZENS ADVICE |
SERVICE LTD |
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Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees. |
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We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion: |
- | adequate and proper accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of trustees' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit; or |
- | the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees. |
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Responsibilities of trustees |
As explained more fully in the Statement of Trustees' Responsibilities, the trustees 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. |
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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. |
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Our responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
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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: |
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Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- | the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- | we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the computer component manufacturing and supply sector; |
- | we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company; |
- | we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- | identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES AND MEMBERS OF |
GLASGOW NORTH WEST CITIZENS ADVICE |
SERVICE LTD |
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Auditors' responsibilities for the audit of the financial statements - continued |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- | making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- | considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
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To address the risk of fraud through management bias and override of controls, we: |
- | performed analytical procedures to identify any unusual or unexpected relationships; |
- | tested journal entries to identify unusual transactions; |
- | assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 2 were indicative of potential bias; and |
- | investigated the rationale behind significant or unusual transactions. |
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In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- | agreeing financial statement disclosures to underlying supporting documentation; |
- | reading the minutes of meetings of those charged with governance; |
- | enquiring of management as to actual and potential litigation and claims; and |
- | reviewing correspondence with HMRC, relevant regulators and the company's legal advisors. |
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There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
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Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
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A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES AND MEMBERS OF |
GLASGOW NORTH WEST CITIZENS ADVICE |
SERVICE LTD |
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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, and to the charitable company's trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members and the trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
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for and on behalf of
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Statutory Auditor |
Chartered Accountants |
Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 |
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89 Seaward Street |
Glasgow |
G41 1HJ |
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GLASGOW NORTH WEST CITIZENS ADVICE |
SERVICE LTD |
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STATEMENT OF FINANCIAL ACTIVITIES |
(INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) |
FOR THE YEAR ENDED 31 MARCH 2021 |
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2021 | 2020 |
Unrestricted | Restricted | Total | Total |
funds | funds | funds | funds |
Notes | £ | £ | £ | £ |
INCOME FROM |
Donations and legacies | 2 |
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Charitable activities | 3 |
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Total |
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EXPENDITURE ON |
Direct charitable costs | 4 |
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NET INCOME |
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RECONCILIATION OF FUNDS |
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Total funds brought forward |
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TOTAL FUNDS CARRIED FORWARD |
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320,881 |
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CONTINUING OPERATIONS |
All income and expenditure has arisen from continuing activities. |
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The Statement of Financial Activities includes all gains and losses recognised in the year. |
GLASGOW NORTH WEST CITIZENS ADVICE |
SERVICE LTD (REGISTERED NUMBER: SC202642) |
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BALANCE SHEET |
31 MARCH 2021 |
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2021 | 2020 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
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CURRENT ASSETS |
Debtors | 12 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 13 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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NET ASSETS |
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FUNDS | 16 |
Unrestricted funds |
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303,262 |
Restricted funds |
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17,619 |
TOTAL FUNDS |
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320,881 |
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These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. |
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The financial statements were approved by the Board of Trustees and authorised for issue on
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GLASGOW NORTH WEST CITIZENS ADVICE |
SERVICE LTD |
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CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2021 |
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2021 | 2020 |
Notes | £ | £ |
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Cash flows from operating activities |
Cash generated from operations | 1 | (60,907 | ) | 83,707 |
Net cash (used in)/provided by operating activities | (60,907 | ) | 83,707 |
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Cash flows from investing activities |
Purchase of tangible fixed assets | (29,640 | ) | (31,071 | ) |
Net cash used in investing activities | (29,640 | ) | (31,071 | ) |
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Change in cash and cash equivalents in the
reporting period |
(90,547 |
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52,636 |
Cash and cash equivalents at the beginning
of the reporting period |
332,154 |
279,518 |
Cash and cash equivalents at the end of the
reporting period |
241,607 |
332,154 |
GLASGOW NORTH WEST CITIZENS ADVICE |
SERVICE LTD |
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NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2021 |
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1. | RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES |
2021 | 2020 |
£ | £ |
Net income for the reporting period (as per the Statement of Financial
Activities) |
59,220 |
34,214 |
Adjustments for: |
Depreciation charges | 16,232 | 9,964 |
(Increase)/decrease in debtors | (135,108 | ) | 64,950 |
Decrease in creditors | (1,251 | ) | (25,421 | ) |
Net cash (used in)/provided by operations | (60,907 | ) | 83,707 |
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2. | ANALYSIS OF CHANGES IN NET FUNDS |
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At 1/4/20 | Cash flow | At 31/3/21 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 332,154 | (90,547 | ) | 241,607 |
332,154 | (90,547 | ) | 241,607 |
Total | 332,154 | (90,547 | ) | 241,607 |
GLASGOW NORTH WEST CITIZENS ADVICE |
SERVICE LTD |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2021 |
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1. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable 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 2015)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', the Charities and Trustee Investment (Scotland) Act 2005 and the Companies Act 2006. |
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Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. |
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The financial statements are presented in Sterling (£). |
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Going concern |
Due to the ongoing Coronavirus pandemic, the Trustees and Key Management Personnel have assessed the potential future of Glasgow North West Citizens Advice Bureau Ltd and whether it can continue as a going concern. The budget for 2021/22 has been prepared to include all approved funding in place for next year and any funding pending approval is being tracked. |
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After assessing all potential impacts and future commitments, the Trustees have a reasonable expectation that the charity has adequate resources and reserves to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements despite the uncertainty caused by the ongoing pandemic. |
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Legal status of the Charity |
The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1. |
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Judgements |
The company considers on an annual basis the judgements that are made by management when applying its significant accounting policies that would have the most significant effect on amounts that are recognised in the financial statements. |
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Information and key sources of estimation uncertainty |
In the application of the company's accounting policies, the directors are required to make estimates and assumptions about the carrying amounts 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. |
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The company does not have any key assumptions concerning the future, or other key sources of estimation uncertainty in the reporting year that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. |
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Income |
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and the amount can be measured reliably. |
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GLASGOW NORTH WEST CITIZENS ADVICE |
SERVICE LTD |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
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1. | ACCOUNTING POLICIES - continued |
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Income |
Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period. |
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Income from government and other grants, whether "capital" or "revenue" grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. |
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Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met. |
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Donated services and facilities |
Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. |
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On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt. |
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Expenditure |
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. |
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Charitable activities |
Costs of the charitable activity are incurred on developing and delivering employability services, including the support costs and costs relating to the governance of the charity apportioned to charitable activities. |
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Allocation and apportionment of costs |
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs are governance costs which support the charity's programmes and activities. These costs have been allocated to charitable activities. |
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Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
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Fixtures and fittings | - |
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Computer equipment | - |
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All assets costing more than £5,000 are capitalised and valued at historical cost. |
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Impairment of tangible fixed assets |
GLASGOW NORTH WEST CITIZENS ADVICE |
SERVICE LTD |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
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1. | ACCOUNTING POLICIES - continued |
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Tangible fixed assets |
At each reporting date non-financial assets not carried at fair value, like plant and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount which is the higher of value in use and the fair value less cost to sell, is estimated and compared with the carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit and loss. |
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Taxation |
The company is a charitable company within the meaning of Paragraph 1 Schedule 6 of the Finance Act 2010. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 or Part 11 of the Corporation Tax Act 2010 and section 256 of the Taxation of Chargeable Gains Act 1991 to the extent that some income or gains are applied for charitable purposes only. |
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Fund accounting |
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. |
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Unrestricted designated funds are funds which have been placed in reserves by the trustees to meet the future specified costs or projects. |
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Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. |
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Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. |
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Pension costs and other post-retirement benefits |
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. |
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Financial instruments |
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable. |
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Debt instruments like trade and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and trade creditors, are measured, initially and subsequently, at the undiscounted amount of cash or other consideration expected to be paid or received. |
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Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for evidence of impairment and if found, an impairment loss is recognised in profit or loss. |
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Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
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Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within borrowings in current liabilities. |
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Provisions |
GLASGOW NORTH WEST CITIZENS ADVICE |
SERVICE LTD |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
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1. | ACCOUNTING POLICIES - continued |
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Financial instruments |
Provisions are recognised when the company has a legal or constructive obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date. |
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2. | DONATIONS AND LEGACIES |
2021 | 2020 |
£ | £ |
Grants |
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3. | INCOME FROM CHARITABLE ACTIVITIES |
2021 | 2020 |
Activity | £ | £ |
Grants | Advice services | 836,861 | 434,515 |
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4. | CHARITABLE ACTIVITIES COSTS |
Support |
Direct | costs (see |
Costs | note 5) | Totals |
£ | £ | £ |
Advice services | 913,878 | 22,838 | 936,716 |
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5. | SUPPORT COSTS |
Governance |
costs |
£ |
Advice services | 22,838 |
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6. | NET INCOME/(EXPENDITURE) |
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Net income/(expenditure) is stated after charging/(crediting): |
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2021 | 2020 |
£ | £ |
Auditors' remuneration | 6,000 | 8,283 |
Auditors' remuneration for non audit work | 1,800 | - |
Depreciation - owned assets |
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GLASGOW NORTH WEST CITIZENS ADVICE |
SERVICE LTD |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
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7. | TRUSTEES' REMUNERATION AND BENEFITS |
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There were no trustees' remuneration or other benefits for the year ended 31 March 2021 nor for the year ended 31 March 2020. |
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Trustees' expenses |
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There were no trustees' expenses paid for the year ended 31 March 2021 nor for the year ended 31 March 2020. |
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Expenses of £190 (2020: £660) were reimbursed to one trustee. |
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During the year under review, 8 trustees waived expenses of £nil (2020: 10 trustees waived £253). |
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No Trustee or other person related to the charity had any personal interest in any contract or transaction entered into by the charity during the year (2020: Nil). |
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8. | STAFF COSTS |
2021 | 2020 |
£ | £ |
Wages and salaries |
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Social security costs |
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Other pension costs |
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717,973 | 553,176 |
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During the year under review, three (2020: three) members of the charity's key management personnel, as noted on page 3, received employee benefits of £107,103 (2020: £87,051) |
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The average monthly number of employees during the year was as follows: |
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2021 | 2020 |
Staff |
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GLASGOW NORTH WEST CITIZENS ADVICE |
SERVICE LTD |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
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9. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES |
Unrestricted | Restricted | Total |
funds | funds | funds |
£ | £ | £ |
INCOME FROM |
Donations and legacies |
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Charitable activities |
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Total |
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EXPENDITURE ON |
Direct charitable costs |
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NET INCOME/(EXPENDITURE) |
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( |
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RECONCILIATION OF FUNDS |
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Total funds brought forward | 268,836 | 17,831 |
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TOTAL FUNDS CARRIED FORWARD | 303,262 | 17,619 | 320,881 |
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10. | GOVERNMENT GRANTS |
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2021 | 2020 |
£ | £ |
Glasgow City Council - Integrated Grant Fund | 136,963 | 315,795 |
NHS | 106,313 | 60,653 |
Glasgow City Council - Gain Helpline | 61,852 | - |
Glasgow City Council - Glasgow Community Fund | 132,849 | - |
Glasgow City Council - Covid Helpline | 20,000 | - |
Glasgow City Council - Financial Inclusion Support Officer | 26,250 | - |
484,227 | 376,448 |
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GLASGOW NORTH WEST CITIZENS ADVICE |
SERVICE LTD |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
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11. | TANGIBLE FIXED ASSETS |
Fixtures |
and | Computer |
fittings | equipment | Totals |
£ | £ | £ |
COST |
At 1 April 2020 |
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Additions |
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At 31 March 2021 |
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DEPRECIATION |
At 1 April 2020 |
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Charge for year |
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At 31 March 2021 |
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NET BOOK VALUE |
At 31 March 2021 |
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At 31 March 2020 |
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12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade debtors |
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Other debtors |
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Prepayments |
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Accrued income |
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GLASGOW NORTH WEST CITIZENS ADVICE |
SERVICE LTD |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
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13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade creditors |
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Social security and other taxes |
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Other creditors |
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Accrued expenses |
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Deferred income |
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At 31 March 2021, deferred income comprised 2021/22 grants received in advance. |
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14. | LEASING AGREEMENTS |
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Minimum lease payments under non-cancellable operating leases fall due as follows: |
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2021 | 2020 |
£ | £ |
Within one year |
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Between one and five years |
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15. | ANALYSIS OF NET ASSETS BETWEEN FUNDS |
2021 | 2020 |
Unrestricted | Restricted | Total | Total |
funds | funds | funds | funds |
£ | £ | £ | £ |
Fixed assets | 43,088 | - | 43,088 | 29,680 |
Current assets |
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Current liabilities |
( |
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( |
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362,482 | 17,619 | 380,101 | 320,881 |
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GLASGOW NORTH WEST CITIZENS ADVICE |
SERVICE LTD |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
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16. | MOVEMENT IN FUNDS |
Net | Transfers |
movement | between | At |
At 1/4/20 | in funds | funds | 31/3/21 |
£ | £ | £ | £ |
Unrestricted funds |
General fund | 233,582 | 75,452 | (29,640 | ) | 279,394 |
Development costs | 40,000 | - | - | 40,000 |
Fixed Assets | 29,680 | (16,232 | ) | 29,640 | 43,088 |
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59,220 |
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Restricted funds |
ADG | 1,993 | - | - | 1,993 |
CAS - Universal Credit | 15,626 | - | - | 15,626 |
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- |
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TOTAL FUNDS |
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59,220 |
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380,101 |
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Net movement in funds, included in the above are as follows: |
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Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 89,006 | (13,554 | ) | 75,452 |
Fixed Assets | - | (16,232 | ) | (16,232 | ) |
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( |
) | 59,220 |
Restricted funds |
CAS Project | 294,027 | (294,027 | ) | - |
GCC IGF | 269,812 | (269,812 | ) | - |
NHS | 106,313 | (106,313 | ) | - |
Impact Funding Partners | 90,777 | (90,777 | ) | - |
SCVO | 15,405 | (15,405 | ) | - |
Airdrie CAB - EU Citizen Support | 22,494 | (22,494 | ) | - |
GCC Projects | 108,102 | (108,102 | ) | - |
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( |
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TOTAL FUNDS |
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( |
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GLASGOW NORTH WEST CITIZENS ADVICE |
SERVICE LTD |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
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16. | MOVEMENT IN FUNDS - continued |
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Comparatives for movement in funds |
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Net | Transfers |
movement | between | At |
At 1/4/19 | in funds | funds | 31/3/20 |
£ | £ | £ | £ |
Unrestricted funds |
General fund | 220,263 | 44,390 | (31,071 | ) | 233,582 |
Development costs | 40,000 | - | - | 40,000 |
Fixed Assets | 8,573 | (9,964 | ) | 31,071 | 29,680 |
268,836 | 34,426 | - | 303,262 |
Restricted funds |
ADG | 2,205 | (212 | ) | - | 1,993 |
CAS - Universal Credit | 15,626 | - | - | 15,626 |
17,831 | (212 | ) | - | 17,619 |
TOTAL FUNDS | 286,667 | 34,214 | - | 320,881 |
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Comparative net movement in funds, included in the above are as follows: |
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Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 59,240 | (14,850 | ) | 44,390 |
Fixed Assets | - | (9,964 | ) | (9,964 | ) |
59,240 | (24,814 | ) | 34,426 |
Restricted funds |
ADG | - | (212 | ) | (212 | ) |
CAS Project | 263,670 | (263,670 | ) | - |
GCC IGF | 315,795 | (315,795 | ) | - |
NHS | 60,653 | (60,653 | ) | - |
Impact Funding Partners | 70,000 | (70,000 | ) | - |
SCVO | 9,231 | (9,231 | ) | - |
719,349 | (719,561 | ) | (212 | ) |
TOTAL FUNDS | 778,589 | (744,375 | ) | 34,214 |
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The unrestricted funds are available to be spent for any purposes of the charity. |
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The Trustees have created the following designated funds: |
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Development Costs : to cover the salary/overheads and materials required for GNWCAB to invest in the development of th e charity to increase and diversify new income streams, which will significantly ensure the sustainability of the charity's core holistic advice services for the future. |
GLASGOW NORTH WEST CITIZENS ADVICE |
SERVICE LTD |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
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16. | MOVEMENT IN FUNDS - continued |
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Fixed Assets : the fixed assets fund represents the net book value of the charity's fixed assets, distinguishing their value from t he charity's unrestricted general fund immediately available for use. |
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Restricted funds comprise: |
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ADG: funds were specifically granted to cover the costs of work of the local area development group. |
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Citizens Advice Scotland (CAS Projects) : CAS provides a number of funds for advice services delivery through UK and Scottish Government including Un iversal Credit Help to Claim (UK); EU Citizens Support (UK); Money Talks (Scottish) and Workplace Equality Fund (Scottish). CAS funding contributes to employers and operating costs across these services. |
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Glasgow City Council IGF: Core funding for employers and operating costs associated across GNWCAB advice services through Glasgow City Council's Financial Inclusion Strategy ends September 2020 and will be replaced by Glasgow Communities Fund. |
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NHS Health and Social Care Partnership: Directly funds outreach and embedded services in health centres across North-West Glasgow in high SIMD areas including Possil, Milton and Maryhill. Focusses on improved outcomes in health inequality and corre lation of poverty. |
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Impact Funding Partners (formerly VAF): provides direct delivery and overhead costs through Promoting Equalities and Cohesion Fund (PECF) and Workplace Equalities Fund (WEF) both of which funds employers and operating costs for widening access proj ects at GNWCAB. |
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Robertson Fund: Equalities Project: to train and recruit volunteers from diverse backgrounds and support into education, emplo yment and training. |
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SCVO : Provides employers costs for supported employment project Communities Job Scotland. GNWCAB was allo cated 2 x CJS positions during 2019/20. |
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GCC Universal Credit: Universal Credit Project: to provide free advice and support to claimants during roll out of the new DWP Universal Credit programme. |
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GCC Interpretation: Additional interpretation costs. |
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CAS - Universal Credit: early mobilisation: to pilot national Universal Credit project. |
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CAS - Welfare mitigation: to work in areas of high deprivation and support clients with a range of benefits advice. |
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CAS - Financial Health Checks: to provide benefits assessments to a range of clients and ensure income maximisation for those in need. |
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CAS - Short Term Debt Funding: to provide advice for debt relief. |
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CAS - Scam Awareness: to raise awareness of scams to vulnerable people. |
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GLASGOW NORTH WEST CITIZENS ADVICE |
SERVICE LTD |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
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17. | RELATED PARTY DISCLOSURES |
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There were no related party transactions for the year ended 31 March 2021 other than the trustees' expenses reimbursed and waived, detailed at note 7. |
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18. | FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES |
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In common with many other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements. |