Statement of Financial Activities Year ended 31 March 2007 · The financial statements are prepared...

28 Citizens Advice Annual report and accounts 2006/07

Statement of Financial Activities Year ended 31 March 2007Incorporating an Income and Expenditure Account

Unrestricted Restricted Total TotalNote DTI Other Designated DTI Other 2007 2006

£’000 £’000 £’000 £’000 £’000 £’000 £’000

Incoming resources

Incoming resources from generated funds:Donations 2 – 30 – – – 30 5Bank interest 165 186 – 28 67 446 428Incoming resources from charitable activities:

Grants 3 21,321 23 156 15,790 5,573 42,863 34,537 Trading activities 1,642 736 – – 13 2,391 2,261 Training and support 140 605 – – 21 766 258 Other incoming resources 96 27 – – 73 196 148 Total incoming resources 16 23,364 1,607 156 15,818 5,747 46,692 37,637

Resources expended

Charitable activitiesStrengthening the bureaux network 10,340 356 128 750 3,083 14,657 11,834

Investing in IT 5,274 – 19 – 443 5,736 6,339 Bureaux and other grants 5 1,449 – – 9,578 926 11,953 8,508 Developing our people 3,561 – 16 1 429 4,007 4,156 Influencing policy 2,911 – 25 – 50 2,986 3,282 Making information available 1,659 – 14 – 214 1,887 1,695 Trading activities 362 857 4 – 64 1,287 1,414 Governance costs 8 277 – 1 – – 278 214Costs of generating funds 84 1 1 – – 86 73

Total outgoingresources 6,7,16 25,917 1,214 208 10,329 5,209 42,877 37,515Net income/(expenditure) 10 (2,553) 393 (52) 5,489 538 3,815 122 Reconciliation of fundsFund balance brought forward 16 3,260 1,624 204 540 2,267 7,895 7,773 Fund balance carried forward 16 707 2,017 152 6,029 2,805 11,710 7,895

All activities derive from continuing operations.There are no recognised gains or losses for the current and preceding year other than as noted above.There is no material difference between the net income/(expenditure) stated above and the historical costequivalent.

Financial statements year ended 31 March 2007

29Citizens Advice Annual report and accounts 2006/07

Balance sheet At 31 March 2007

Note 2007 2006£'000 £'000

Fixed Assets 11 167 166

Current AssetsInvestments 24 2 –Debtors 12 1,375 1,675Cash at bank and in hand 15,285 9,796

16,662 11,471

Creditors: amounts falling due within one year 13 4,374 3,525Net current assets 12,288 7,946Total assets less current liabilities 12,455 8,112

Creditors : amounts falling dueafter more than one year 14 253 184

Provisions for liabilities 15 492 33and chargesTotal assets less all liabilities 11,710 7,895

Capital and reservesRestricted funds 16 8,834 2,807Unrestricted funds

General fund – other non–DTI 16 2,017 1,624General fund – DTI 16 707 3,260Designated reservesLondon region reserves 17 0 52Capital fund 17 143 143CAB general fund 17 9 9

Total unrestricted funds 2,876 5,088Total funds 16 11,710 7,895

The financial statements were approved by the Trustee Board on 27 July 2007 and signed on their behalf by:

The Revd. Hilary Watkins Jonathan Tross CB David Harker OBEChair Treasurer Chief Executive



Cash flow statement Year ended 31 March 2007

Note 2007 2006£’000 £’000

Net cash inflow/(outflow) from operating activities A 5,211 (722)

Returns on investmentsInterest received 446 428 Capital expenditure and financial investmentPurchase of tangible fixed assets (168) (164)Receipts from sales of fixed assets – – Increase/(decrease) in cash B 5,489 (458)

Notes to the cash flow statementA. Reconciliation of net incoming resources to net cash inflow from operating activities

2007 2006£’000 £’000

Net income 3,815 122 Depreciation charges 167 172 Disposal of fixed assets – – Decrease in debtors 301 195 Increase/(decrease) in creditors 917 (760)Increase/(decrease) in provisions 457 (23)Bank interest receivable (446) (428)Net cash inflow/(outflow) from Operating Activities 5,211 (722)

B. Analysis of changes in cash during the yearAs at As at

31 March 2007 Movement 1 April 2006£’000 £’000 £’000

Cash at bank and in hand 15,285 5,489 9,796


“We find e-learning a veryvaluable tool for adviserswho have limited time and commitments.”Bureau manager


Notes to the financial statements Year ended 31 March 2007

1. Accounting policiesThe financial statements are prepared in accordancewith applicable accounting standards in the UnitedKingdom, the Statement of Recommended Practice(SORP) – Accounting and Reporting by Charities(2005), the Charities Act (1993), the Companies Act(1985), the accounts section of the DTI FinancialMemorandum, and the Annual Reports andAccounts Guidance from the Central AccountancyTeam and HM Treasury. The principal accountingpolicies, which have been applied consistently, exceptwhere noted are set out below:

(a) Accounting conventionThe financial statements are prepared under thehistorical cost convention.

(b) Fixed assetsFixed assets are financed by grants, which arerecognised in the statement of financial activitieswhen they are receivable, in accordance with theSORP. The capital element of the DTI grant in aidreceived is recognised in the designated capitalfund. This amount offsets the depreciation over thelife of the asset.

All assets are held at historic cost less depreciation.Assets are reviewed each year to ensure they are fitfor the intended purpose.

Only assets over £500 are capitalised. Depreciationis charged on a straight–line basis on the cost ofassets over their estimated useful life.

The estimated lives of the assets are as follows:Office and computer equipment – three years.

(c) InvestmentsInvestments held as fixed assets are revalued at mid-market value at the balance sheet date and the gainor loss taken to the Statement of Financial Activities.

(d) StockGoods for resale and other consumable stock areconsidered to be of immaterial value, and havebeen charged in the statement of financialactivities as the costs were incurred.

(e) LeasesRental costs under operating leases are charged tothe statement of financial activities in equalamounts over the periods of the leases.

(f) Pension costsA multi-employer defined benefit scheme was inoperation during the year. Having taken advice fromthe scheme’s actuary, Citizens Advice cannot identifyits share of the underlying assets and liabilities on aconsistent and reasonable basis. The disclosuresunder FRS 17 in this circumstance are shown in note22. The expected cost of providing pensions iscalculated periodically by a professionally qualifiedactuary. The operating costs of providing retirementbenefits to employees are charged to the statementof financial activities in the year in which they areincurred as required by FRS 17.

On 1 April 2005, Citizens Advice introduced adefined contribution pension, which staff couldopt to join. The employer’s contributions arecharged to the statement of financial activities inthe period in which they have incurred.

(g) Grants payable and receivableGrants payable are made to local Citizens AdviceBureaux and other bodies, and the liability isrecognised when the obligation arises although thegrant may not be due.

Grants receivable are recognised when due andwhen any conditions for receipt are met. Anyunexpended grant is carried forward in reserves. Ifany grant has been provided for a stated purpose,it is carried forward as restricted funds. Any unusedgrants not able to be used for the purposedetermined by the funder are returned inaccordance with the funder agreement.

(h) Deferred incomeDeferred income relating to subscriptions is shownwithin the balance sheet.

(i) LegaciesLegacies are recognised when they are received orwhen notice is given from the executor that apayment is due, whichever is sooner.



1. Accounting policies (continued)(j) Trading activitiesThe trading activities of Citizens Advice, mainly thesale of information, are exercised in the course ofcarrying out the primary purpose of the charity. Thegross income is shown in the Statement of FinancialActivities as trading activities.

(k) Other income Other income is recognised on receipt. This is due to the small volume and unpredictable nature ofother income.

(l) Resources expendedAll expenditure is accounted for on an accruals basisand has been classified under the charitableexpenditure activity headings with reference toactivities performed in the year.

Costs of generating funds are those costs relating tofundraising for new donors or new projects.

Governance costs are those incurred in connectionwith the administration of the charity andconstitutional and statutory compliance.

Staff costs are all emoluments incurred. Other direct costs are non-staff costs incurred by eachprincipal activity.

Irrecoverable VAT is treated as resources expended inthe principal activity that incurred the original VAT.

Premises, fund-raising, central administration, ITsupport, human resources costs and pertinentcorporate finance costs (staff and other costs), whichare not directly attributable to a particular principalactivity, have been fully allocated to departments andactivities based on staff numbers of the principalactivity as shown in note 7.

(m) Foreign exchange gains and lossesCitizens Advice uses sterling for the large majority ofits transactions. Occasionally, payments are requiredin foreign currencies and these are translated intoSterling on the date of the transaction. All amountsheld at the balance sheet date are in Sterling with nogains or losses arising.

(n) ReservesUnrestricted funds are expendable at the discretionof the trustees in furtherance of the charity’sobjectives. Unrestricted funds represent funds raisedor grants awarded for no specified project, where theexpenditure has not yet occurred. The expenditurewill arise in subsequent financial periods. Transfers toand from designated funds are subject to theapproval of the Performance Review and AuditCommittee.

Citizens Advice is unable to build up substantialreserves of unutilised DTI funds as the requirementsin the Management Statement and FinancialMemorandum limit the level of funds that can becarried forward to future years. Any additionalbalances in excess of the working balance carriedforward require DTI approval.

There are no such carry forward restrictions on otherunrestricted funds.

Designated funds are made up of London regionreserves, the capital fund and CAB general fund. Thereasons for holding these are outlined in note 17.

Restricted funds are awarded for a specified project,which will be declared by the donor, or restrictedwith their authority or with a restriction created by alegal process, although the scope of the project is stillwithin the wider objectives of the charity. Incomemay be awarded in one year for expenditure in thator a subsequent year on a specified project. Transfersfrom restricted funds are only possible at the requestof the original donor with the approval of thePerformance Review and Audit Committee.

(o) ConsolidationCitizens Advice Ltd is a subsidiary undertakingcontrolled by Citizens Advice. Each year,consideration is given as to whether users of theStatement of Financial Affairs can see a completepicture of the activities of the organisation withoutconsolidating the accounts of Citizens Advice Ltd.As at 31 March 2007, the accounts have not beenconsolidated on grounds of materiality.



2. Donations2007 2006£'000 £’000

Donation from subsidiary charity 22 0Donations from private individuals 8 5Total donations 30 5

3. Grantsa) Government grants

Funder 2007 2006£'000 £'000

Government department grants

DTI 21,470 23,605DTI 15,443 –DTI 190 190DTI 69 521DTI 87 87Department of Communities & Local Government 580 407

Department of Communities & Local Government 153 47Department for Education & Skills 70 70Department for the Environment, Food & Rural Affairs 49 45Department of Health – 5,366

Department for Work & Pensions – 126HM Prison Service – 17HM Revenue & Customs 600 90Ministry of Defence – 32National Probation Service – 10

Welsh Assembly Government

Welsh Assembly 700 700

European grants

European Commission 98 157European Commission – 4Total Government grants 39,509 31,474

*£156,000 of the grant in this financial year has been used for thepurchase of fixed assets. This is shown in designated income in theStatement of Financial Activities.

Purpose

Grant in Aid*Financial Inclusion FundEuropean consumer rights projectSexual Orientation & Religious Beliefs Age Discrimination projectThe National Homelessness AdviceServiceHomelessness Prevention Liaison UnitMillennium Volunteers projectRural development projectIndependent Complaints AdvocacyServiceFinancial literacy Reducing Offending Through AdviceTax credit trainingVeterans projectReducing Offending Through Advice

Better Advice Better Health

European Consumer CentreSexual Orientation & Religious Beliefs

Citizens Advice LtdIndividual Giving Project



3. Grants (continued)b) Grants from other public bodies

Funder 2007 2006£'000 £'000

Devon County Council 398 351Disability Rights Commission 62 –Financial Services Authority – 18Hampshire County Council – 53Kent Probation Service 155 127Legal Services Commission 163 27Legal Services Commission 214 213Legal Services Commission 89 86London Borough of Newham 17 13Oxfordshire County Council – 27Remploy 176 79SEEDA^ 5 –Somerset County Council – 65West Yorkshire County Council 67 68

1,346 1,127

* MASU – Money Advice Support Unit+SS – Specialist Support^SEEDA – South East England Development Agency

Purpose

Regional projects

Financial Literacy SS Casework & Consultancy+Kent Probation ProjectOffender Support ServiceCasework & Consultancy (Wales)SS Training, Consultancy & Delivery+Information productionRegional projectsHealthy Minds at WorkOffender Support ServiceRegional projectsNorth MASU*



3. Grants (continued)c) Other grants

Funder 2007 2006£'000 £'000

Abbey Charitable Trust – 2The Abbey National Charitable Trust 160 – AEGON UK plc 50 – Alliance and Leicester plc 15 30Barclays Bank plc – 150Barclays Bank plc – 50Barclaycard 313 176Barlow Lyde & Gilbert – 1Black Development Agency – 6Bristol Water & Quartet Community Foundation – 1Calouste Gulbenkian Foundation – 10Charities Evaluation Services 2 – Compaq, a subsidiary of Hewlett Packard Inc. – 5Credit Suisse First Boston – 10Denton Wilde Sharpe – 1Eufax 2 2Finance Leasing Association 13 – Francis Winham Foundation – 2Friends of CABx Trust – 6Friends Provident Foundation – 200GlaxoSmithKline – 10GMAC RFC Foundation 52 52Grant Thornton 2 2GUS Charitable Trust – 55v, the youth volunteering charity 166 – HSBC 20 – HSS Trading 3 – John Lewis partnership 2 – Linklaters 3 3MacMillan Cancer Support 107 88Mayer Brown Rowe & Maw 1 – MBNA 27 20Money Advice Trust 354 251Money Advice Trust (Barclays plc) – 250Money Advice Trust (Royal Bank of Scotland plc) 92 68Money Advice Trust (Nationwide) – 15Money Advice Trust (Hitachi Credit) – 8Money Advice Trust 176 –

sub-total to carry forward to next page 1,560 1,472

Purpose

Bureaux grantsFinancial literacyFinancial adviceMoney Advice projectsNorth MASU*Rural Regeneration projectFinancial literacy for lone parentsBureaux grantsBureau Managers Information SystemBureaux grantsSocial policy projectInformation productionAdvice WeekLondon CABBureaux grantsTelephone adviceConference sponsorshipBureaux grantsBureaux grantsFinancial literacyPrescribing Advice bookletMA Strategy Wales^North West regional conferenceFinancial literacyYouth Volunteers projectSocial Policy ConferenceBureaux grantsSundry projectsBureaux grantsSocial policy projectInformation productionSundry projectsMA National StrategyMA National StrategyMA training – yellow route^North MASU*North MASU*MA Training Financial Inclusion Fund



3. Grants (continued)c) Other grants

Funder 2007 2006£'000 £'000

brought forward from previous page 1,560 1,472

Nationwide Building Society 50 50NIACAB 28 – Northern Rock Foundation 87 – Provident Financial plc – 15Prudential plc 233 248Raise 1 – Resolution Foundation 3 – The Royal Bank of Scotland plc 7 97Severn Trent Trust Foundation – 13Wales Council for Voluntary Action (WCVA) 4 4Yorkshire Building Society 10 10Yorkshire Water 25 25

2,008 1,934

*MASU – Money Advice support unit^MA – Money Advice

Total grants 42,863 34,537

4. Information regarding directors and employeesThe trustees of Citizens Advice are the non-executive directors of the charitable company. No emolumentswere paid to any non-executive directors (2006: Nil). Payments of £17,000 (2006: £18,000) were made to26 (2006: 17) non-executive directors during the year in respect of expenses incurred. No trustee indemnityinsurance was purchased.

Expense reimbursed 2007 2007 2006 2006Number of Amount Number of Amountdirectors reimbursed directors reimbursed

£’000 £’000Travel 24 14 17 15Subsistence 15 3 10 3

Purpose

MA Strategy North^Audit ServicesOffender Support ServicesNorth MASU*Financial literacySundry projectsConference sponsorshipCitizens Advice Annual ConferenceFinancial literacyVoluntary sector partnership councilMA StrategyMoney Advice projects



4. Information regarding directors and employees (continued)Employee costs during the year:

2007 2006£'000 £'000

Wages and salaries 12,502 12,176Social security costs 1,220 1,173Pension costs (see note 22) 601 623Temporary staff 671 778

14,994 14,750

Pension costs shown above relate to amounts accrued in the year. Amounts are paid to the NACAB Pensionand Assurance Plan (1991) a month in arrears. The amount paid in 2006/07 was £601,000 (see note 22).

Staff were paid in the following bands (the number is based on full–time equivalent):

Number Number2007 2006

Up to £10,000 13 12£10,001 to £20,000 77 83£20,001 to £30,000 106 108£30,001 to £40,000 173 160£40,001 to £50,000 31 31£50,001 to £60,000 3 1£60,001 to £70,000 3 2£70,001 to £80,000 3 4£80,001 to £90,000 1 1£100,001 to £110,000 1 1

411 403



4. Information regarding directors and employees (continued)The average number of people employed in each activity during the year was:


Strengthening the bureaux nework 229 208Investing in IT 57 54Bureaux and other grants 2 2Developing our people 37 43Influencing policy 38 45Making information available 31 31Trading activities 5 6Governance 3 3Costs of generating funds 9 11Average number of persons employed 411 403

In accordance with the requirements of the Financial Memorandum, the following information should bedisclosed for named senior managers. Citizens Advice has identified all the executive directors as seniormanagers. This is consistent with its treatment of key managers for Related Party Disclosure (FRS 8 – note 23).

Aggregate emoluments paid to executive directors in the financial yearThe figures comprise gross salaries and all allowances payable, including employee pension supplement,and exclude employer’s pension contributions. No other amounts were payable. All staff paid over £60,000were executive directors. All of the executive directors withheld their consent to be individually named inthe disclosure of the information below.


£5,000 to £9,999 – 1£25,000 to £29,999 – 1£60,000 to £64,999 2 2£65,000 to £69,999 1 1£70,000 to £74,999 2 1£75,000 to £79,999 1 –£80,000 to £84,999 1 1£105,000 to £109,999 1 1



4. Information regarding directors and employees (continued)Pension contributions paid by Citizens Advice into the NACAB Pension and Assurance Plan (1991) onbehalf of senior managers in the financial year:

2007 2006up to £2,499 – 2£2,500 to £4,999 6 5£5,000 to £7,499 2 1

Citizens Advice does not pay any other pension contributions (including personal contributions) on behalfof any senior managers.

5. Grants payableGrants were made to Citizens Advice member bureaux in the financial year as follows:

a) Partnership grantsSalaries Other Capital 2007 2007 2006

Region No. £'000 No. £'000 No. £'000 Total No. £'000 £'000North 1 3 4 16 14 80 19 99 169North West 10 59 5 14 3 16 18 89 190Midlands 12 39 7 23 9 45 28 107 158East 4 20 2 3 6 29 12 52 124South East 3 11 5 21 14 73 22 105 182South West 4 19 3 32 7 28 14 79 204London* 2 23 10 354 5 36 17 413 105Wales 3 40 5 24 5 25 13 89 102Total 39 214 41 487 63 332 143 1,033 1,234

* Included in the amount classified as Other payments to London bureaux, is an amount of £286,000 forEast End Citizens Advice Bureaux.



5. Grants payableb) Other grants to member bureaux

2007 2006No. £’000 £’000

Rural bureaux Department of the Environment, 1 10 45Food & Rural Affairs

Independent Complaints Advocacy Department of Health 9 (19) 4,596Service refunds on closureAccess Strategy DTI 6 300 –Corporate information project DTI – – 3Financial Inclusion Fund DTI 176 7,946 –IT services projects DTI – – 36Rural bureaux DTI 19 31 –Sexual Orientation & Religious Beliefs DTI 7 85 272Training project DTI – – 15Volunteer of the Year DTI – – 1Financial Literacy Department for Work & Pensions – – 99Leicester CAB East Midlands Electricity 1 8 5Financial Literacy Financial Services Authority – – 13Financial Literacy Friends Provident Fund 27 127 –Reducing Offending Through Advice HM Prison Service 1 2 –Tax Credits Training HM Revenue & Customs 34 155 56Individual giving project Individual donations 1 1 2Financial Inclusion Training Money Advice Trust 26 56 –National Homelessness Advice Service Office of the Deputy Prime Minister – – 20Rural bureaux Prudential Assurance Company 5 20 (4)Healthy Minds at Work Remploy 28 120 0Volunteer of the Year The Royal Bank of Scotland plc 1 3 3Financial Literacy Society of Financial Advisers – – 18Volunteer Development v 6 11 –Better Advice Better Health Welsh Assembly – – 610

383 9,110 5,896



5. Grants payable (continued)c) Regional grants to Citizens Advice BureauxRegional grants to bureaux from County Councils are increasingly being paid direct to bureaux rather than through Citizens Advice.

Region Funder 2007 2007 2006Total No. £'000 £'000

South West Devon County Council 9 179 175South West Somerset County Council – – 19Midlands Nottinghamshire County Council – – 9Total 9 179 203

Total bureaux grants 535 10,322 7,388

d) Largest grants paid to member bureaux

Bureau name Description of grant 2007 2006£’000 £’000

1 32 Separate bureaux Independent Complaints Advocacy Service – 4,7082 Colchester Partnership Grant: Capital 50 –3 Dorchester Partnership Grant: Capital 51 –4 Fareham Partnership Grant: Capital 54 –5 Haslemere Partnership Grant: Capital – 506 Northampton Partnership Grant: Capital 58 –7 Peterborough Partnership Grant: Capital – 508 Royal Courts of Justice Partnership Grant: Salary 43 309 Shrewsbury Partnership Grant: Capital 50 –10 South Kirklees Partnership Grant: Capital – 5011 Swansea Partnership Grant: Capital 50 –12 West Cornwall Partnership Grant: Capital 33 –13 Birmingham Sexual Orientation and Religious Belief 48 –14 Bradford Sexual Orientation and Religious Belief 48 –15 Flintshire Sexual Orientation and Religious Belief 68 –16 Newport Sexual Orientation and Religious Belief 68 –17 Village Sexual Orientation and Religious Belief 31 –18 Barnsley Financial Inclusion Fund 110 –19 Berwick Financial Inclusion Fund 87 –20 Birmingham Financial Inclusion Fund 129 –21 Blackpool Financial Inclusion Fund 95 –22 Blyth Valley Financial Inclusion Fund 47 –23 Bolton Financial Inclusion Fund 94 –24 Boothferry Financial Inclusion Fund 32 –25 Boston Financial Inclusion Fund 32 –26 Bournemouth Financial Inclusion Fund 29 –27 Bradford Financial Inclusion Fund 226 –28 Bury Financial Inclusion Fund 59 –



d) Largest grants paid to member bureaux (continued)


29 Caerphilly Financial Inclusion Fund 86 –30 Camden Financial Inclusion Fund 183 –31 Cardiff Financial Inclusion Fund 79 –32 Castle Morpeth Financial Inclusion Fund 79 –33 Chapeltown Financial Inclusion Fund 54 –34 Chester le Street Financial Inclusion Fund 41 –35 Cumbria Financial Inclusion Fund 221 –37 Combined Hospitals Financial Inclusion Fund 76 –38 Coventry Financial Inclusion Fund 86 –39 Crewe & Nantwich Financial Inclusion Fund 117 –40 Cynon Valley Financial Inclusion Fund 38 –41 Darlington Financial Inclusion Fund 71 –42 Denbighshire Financial Inclusion Fund 42 –43 Derwentside Financial Inclusion Fund 70 –44 Diss & Thetford Financial Inclusion Fund 42 –45 Doncaster Financial Inclusion Fund 71 –46 Dudley Financial Inclusion Fund 71 –47 Easington Financial Inclusion Fund 44 –48 Ely & District Financial Inclusion Fund 61 –49 Gateshead Financial Inclusion Fund 176 –50 Great Yarmouth Financial Inclusion Fund 49 –51 Grimsby Cleethorpes Financial Inclusion Fund 71 –52 Gwynedd Financial Inclusion Fund 42 –53 Harrogate Financial Inclusion Fund 39 –54 Hartlepool Financial Inclusion Fund 55 –55 Hastings & Rotherham Financial Inclusion Fund 47 –56 Herefordshire Financial Inclusion Fund 54 –57 Horsham & District Financial Inclusion Fund 35 –58 Hull Financial Inclusion Fund 176 –59 Isle of Wight Financial Inclusion Fund 45 –60 Keighley Financial Inclusion Fund 49 –61 Kerrier Financial Inclusion Fund 43 –62 Leeds Financial Inclusion Fund 122 –63 Liverpool Financial Inclusion Fund 67 –64 Lowestoft Financial Inclusion Fund 84 –65 Luton Financial Inclusion Fund 42 –66 Manchester Financial Inclusion Fund 132 –67 Medway Financial Inclusion Fund 37 –68 Mendip Financial Inclusion Fund 32 –69 Merthyr Tydfill Financial Inclusion Fund 37 –70 Mexborough Financial Inclusion Fund 45 –71 Middlesbrough Financial Inclusion Fund 66 –72 Milton Keynes Financial Inclusion Fund 31 –



5. Grants payable (continued)d) Largest grants paid to member bureaux (continued)


73 Newcastle Financial Inclusion Fund 123 –74 Newport Financial Inclusion Fund 42 –75 North Devon Financial Inclusion Fund 48 –76 North East Doncaster Financial Inclusion Fund 43 –77 North Kirklees Financial Inclusion Fund 55 –78 North Tyneside Financial Inclusion Fund 133 –79 Oldham District Financial Inclusion Fund 47 –80 Pendle District Financial Inclusion Fund 109 –81 Peterborough Financial Inclusion Fund 109 –82 Plymouth Financial Inclusion Fund 73 –83 Port Talbot Financial Inclusion Fund 42 –84 Powys Financial Inclusion Fund 41 –85 Redcar & Cleveland Financial Inclusion Fund 83 –86 Rochdale Financial Inclusion Fund 50 –87 Rotherham Financial Inclusion Fund 130 –88 Rushmoor Financial Inclusion Fund 30 –89 Salford Financial Inclusion Fund 106 –90 Salford Mental Health Financial Inclusion Fund 49 –91 Sandwell Financial Inclusion Fund 95 –92 Scunthorpe Financial Inclusion Fund 36 –93 Sedgefield & District Financial Inclusion Fund 70 –94 Sheffield Debt Support Financial Inclusion Fund 236 –95 South Kirklees Financial Inclusion Fund 49 –96 South Tyneside Financial Inclusion Fund 114 –97 Stockton Financial Inclusion Fund 100 –98 Stoke on Trent Financial Inclusion Fund 157 –99 Swansea Financial Inclusion Fund 48 –100 Tameside Financial Inclusion Fund 61 –101 Teesdale Financial Inclusion Fund 41 –102 Telford & Wrekin Financial Inclusion Fund 47 –103 Tendring Financial Inclusion Fund 40 –104 Torfaen Financial Inclusion Fund 48 –105 Trafford Financial Inclusion Fund 62 –106 Tynedale Financial Inclusion Fund 53 –107 Vale of Glamorgan Financial Inclusion Fund 67 –108 Wakefield Financial Inclusion Fund 112 –109 Walsall Financial Inclusion Fund 87 –110 Wansbeck Financial Inclusion Fund 39 –111 Warwick District Financial Inclusion Fund 35 –112 Washington Financial Inclusion Fund 148 –113 Wear Valley Financial Inclusion Fund 44 –114 West Lancashire Financial Inclusion Fund 106 –115 West Wiltshire Financial Inclusion Fund 40 –



5. Grants payable (continued)d) Largest grants paid to member bureaux (continued)


116 Weymouth & Portland Financial Inclusion Fund 37 –117 Wolverhampton Financial Inclusion Fund 165 –118 Worcester Financial Inclusion Fund 35 –119 Wrexham Financial Inclusion Fund 73 –120 York Financial Inclusion Fund 46 –121 Ammanford Better Advice: Better Health 29 29120 Caerphilly Better Advice: Better Health 52 52121 Conwy Better Advice: Better Health – 29122 Newport Better Advice: Better Health 29 29123 North Denbighshire Better Advice: Better Health 29 –124 Powys Better Advice: Better Health 30 30127 Swansea Better Advice: Better Health 31 31128 Torfaen Better Advice: Better Health 30 29129 Ynys Mon Better Advice: Better Health 30 30


5. Grants payable (continued)e) Grants to other bodiesA grant of £15,000 was paid to Adviceuk (2006: £26,000) in relation to their element of the NationalHomelessness Advice project. Further grants were paid in relation to the Financial Inclusion Fund project tothe following:

Birmingham Settlement; £103,000; Burley Lodge £84,000; Contact a Family £21,500; Ebor GardensAdvice Centre £40,000, Money Advice & Community £17,000; Money Advice Plymouth £72,000; RNIB£22,000; RNID £16,000; Sheffield Debt Support £222,000; Single Parent Action Network £35,000; StVincent Support Centre £50,000.

f) Reconciliation of financial activities2007 2006£'000 £'000

Total grants payable to bureaux (note 5a – note 5c) 10,322 7,388Total grants payable to other bodies (note 5e) 721 28Direct staff costs 359 793Other direct costs 168 288Allocated staff costs 54 4Allocated other costs 329 7

11,953 8,508

6. Total resources expended

Other OtherStaff direct Allocated allocated Total Totalcosts costs staff costs costs 2007 2006

£'000 £'000 £'000 £'000 £'000 £'000Strengthening the bureaux network 6,452 6,016 753 1,436 14,657 11,834Investing in IT 1,726 1,155 284 2,571 5,736 6,339Bureaux and other grants 359 11,211 54 329 11,953 8,508Developing our people 1,200 1,968 359 481 4,008 4,156Influencing policy 1,723 491 593 180 2,987 3,282Making information available 913 650 289 35 1,887 1,695Trading activities 139 1,132 1 14 1,286 1,414Governance costs 75 129 26 48 278 214Costs of generating funds 36 32 12 5 85 73

12,623 22,784 2,371 5,099 42,877 37,515


7. Support cost breakdown by activityFund- IT Human Total Total

Premises raising Services Resources Finance 2007 2006£'000 £'000 £'000 £'000 £'000 £'000 £'000

Strengthening the 933 203 1,822 272 838 4,068 2,546bureaux networkInvesting in IT – – – – – – 478Bureaux and other grants – – – – – – 11Developing our people 257 56 503 75 231 1,122 717Influencing policy 331 72 646 97 297 1,443 761Making information available 165 35 322 48 148 718 470Trading activities 14 3 27 4 13 61 165Governance costs 5 1 11 2 5 24 20Costs of generating funds 8 2 15 2 7 34 21

1,713 372 3,346 500 1,539 7,470 5,189

Premises costs are allocated across activities on staff numbers (based on full time equivalent) based at eachpremises. All other amounts are allocated on the basis of staff numbers (based on full time equivalent).

The above amounts represent the allocated staff and other allocated costs in note 6.

8. Governance costs2007 2006£'000 £'000

Audit fees (internal and external) 73 64Trustee meeting costs 49 60Governance and leadership 27 15Legal advice for trustees 65 35Preparing statutory accounts and annual report 9 9Strategic planning 21 11Allocated staff costs 8 6Allocated non staff costs 26 14

278 214

9. Corporation taxCitizens Advice is a registered charity and is not liable to taxation.





10. Net expenditureNet outgoing resources for the year are stated after charging:

2007 2006£'000 £'000

Operating lease costsProperty 1,890 1,574Motor vehicles 18 21Office equipment 3 2

Depreciation 167 170

External Auditors' remunerationExternal audit fee 34 34Other Services 2 2Non audit work – –

11. Fixed assetsOffice and computer equipment £'000Cost

At 1 April 2006 517 Additions 168 Disposals (184)

At 31 March 2007 501

DepreciationAt 1 April 2006 351 Charge for the year 167 Disposals (184)

At 31 March 2007 334

Net book value at 31 March 2007 167

Net book value at 31 March 2006 166

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12. Debtors2007 2006£'000 £'000

Trade debtors 649 807 Other debtors 109 101 Prepayments & accrued income 431 566 HM Revenue & Customs 68 193 Connected charities 118 8

1,375 1,675

Included in other debtors is £109,000 (2006: £101,000), which relates to 81 (2006: 71) staff season ticketor car loans. These are interest free and are recoverable through monthly payroll deductions. This includestwo senior officers who had loans outstanding, at the balance sheet date, of less than £2,000 each.

13. Creditors: amounts falling due within one year

2007 2006£'000 £'000

Trade creditors 275 1,252Citizens Advice bureaux grants 300 1,114Other creditors including taxation & social security 512 526Accruals & deferred income 3,287 633

4,374 3,525

2007 2006£'000 £'000

Other creditors consists of:HMRC PAYE 170 169National Insurance 176 169Other creditors 166 188

512 526

2007 2006£'000 £'000

Deferred income:Deferred income at 1 April 2006 301 605 Amount released from previous year (301) (605)Incoming resources deferred in the year 189 301

Deferred income at 31 March 2007 189 301



14. Creditors: amounts falling due after one year2007 2006£'000 £'000

Citizens Advice Bureaux grants 253 184

253 184

15. Provisions2007 2006

Property provisions £’000 £’000Provision at 1 April 33 56Additional provision during the year 171 33Provision released during the year (33) (56)Provision at 31 March 171 33

Other provisionsProvision at 1 April - -Additional provision during the year 321 -Provision released during the year - -Provision at 31 March 321 -

Total provisions at 31 March 492 33

The property provisions relate to rent reviews performed in the period which have not yet been finalised. It is expected that they will be finalised in 2007/08. Other provisions are £321,000 for redundancy andservice restructuring costs.



The unrestricted funds (DTI and other) represent thefree funds of Citizens Advice, which are notdesignated for particular purposes.

DTI restricted funds incoming resource representsgrants from the DTI for the European ConsumerCentre Project, the Sexual Orientation and ReligiousBeliefs project, the Age Discrimination project andten Financial Inclusion Fund projects.

The Citizens Connect project continued to linkindividual Citizens Advice Bureaux to a virtual privatenetwork and develop and install CASE software inbureaux. The project was completed in 2006/07.

Independent projects represent the projects aroundthe country for both England and Wales servicedevelopment initiatives, which are not funded by the DTI.

Money Advice support strategy funds are fundsreceived via the Money Advice Trust (MAT) andother funders for specialist consultancy andcasework support and training to MAT agencies inEngland and Wales.

Regional managed funds are funds for local orgeographically based initiatives, and the incomecomprised: £398,000 (from County Councils) andbank interest and other income of £27,000.

The Department of Communities and LocalGovernment funds the National HomelessnessAdvice Service which is a joint project betweenCitizens Advice and Shelter to improve the qualityof homelessness and housing advice to the publicthrough second tier support and training toCitizens Advice Bureaux.

16. Statement of fundsAt 1 April At 31 March

2006 Income Expenditure 2007£'000 £'000 £'000 £'000

Unrestricted funds – DTI 3,260 23,364 25,917 707Unrestricted funds – other 1,624 1,607 1,214 2,017Unrestricted funds – designated 204 156 208 152Total unrestricted funds 5,088 25,127 27,339 2,876

Restricted funds – DTI 540 15,818 10,329 6,029Citizens Connect project 439 0 439 0Independent projects 559 3,677 2,605 1,631Money Advice Trust funded projects 648 719 899 468Regional Managed Funds 250 425 423 252National Homelessness Advice Service 44 733 632 145Social policy projects 63 0 0 63Training projects 114 92 132 74Independent Complaints Advocacy Service 94 1 72 23IT Services programme 53 7 7 53European Commission projects 3 98 5 96Total restricted funds 2,807 21,570 15,543 8,834Total Funds 7,895 46,697 42,882 11,710



16. Statement of funds (continued)Policy and training funds comprise all fundsreceived specifically to undertake training or socialpolicy project activities.

The Independent Complaints Advocacy Servicebegan in September 2003 in six of the nine localgovernment regions. It provided grants andsupport to 32 bureaux to enable them to deliverindependent advice and support to people withcomplaints against the National Health Service. The project ceased serving the public on 31 March2006, and was finalised on 31 May 2006. Adistribution against outstanding claims is to bemade once all participant bureaux returns havebeen finalised.

IT services programme funds comprise any non-DTIfunds received for the development of IT Servicesprojects

The European Commission funded EuropeanConsumer Centre work. The European fundingceased on 31 December 2006, although SpecialistSupport consumer work continues using remainingbalances and DTI project grant.

17. Designated reservesLondon region reservesThe London region reserves were acquired on 1April 1991 when the undertaking of GLCABStogether with its assets and liabilities weretransferred to Citizens Advice. It was agreed thatthe reserves acquired on this date would be usedsolely within the London region, to deal withproperty and other issues related to the Londonbureaux employment function. This is at thediscretion of the Trustee Board. The balance wasused for bureau property purposes during 2006/07and at 31 March 2007 was £nil (2006: £52,000).

Capital fundThe fund represents the balance of the capitalelement of DTI grants. The balance as at 31 March2007 was £143,000 (2006: £143,000).

CAB general fundThe CAB general fund represents the excess ofincome over expenditure for the period prior toincorporation. It has been agreed that as generalreserves these should be made available to beallocated as the Trustee Board decides for the ITServices project. The balance as at 31 March 2007was £9,000 (2006: £9,000).



18. Analysis of net assets between fundsUnrestricted Restricted Total

DTI Other Designated DTI Other£'000 £'000 £'000 £'000 £'000 £'000

Fund balances at 31 March 2007 arerepresented by:

Fixed assets 14 - 143 5 5 167Current assets 5,134 2,401 9 6,029 3,089 16,662Creditors: amounts falling due (3,696) (384) - (5) (289) (4,374)within one yearCreditors: amounts falling due (253) - - - - (253)after one year Provisions (492) - - - - (492)Fund balance 707 2,017 152 6,029 2,805 11,710

19. Citizens Advice BureauxThe financial statements record the income and expenditure of Citizens Advice. Individual Citizens AdviceBureaux are not consolidated within these accounts as they are independent legal entities funded directlyand indirectly from their own sources and are accountable to their own members and funding bodies.

20. Contingent liabilitiesCitizens Advice holds some leases in its name on behalf of some of the London bureaux. The lease costs areborne by the respective bureaux. However, in the event that these bureaux cease to operate, liabilities mayarise in respect of responsibilities as leaseholder to the extent that they cannot be recovered from themanagement committees and local authorities. This liability is diminishing over time following the transferof leases to the London Bureaux Trustee Boards.

21. Operating lease commitmentsAt 31 March 2007 Citizens Advice was committed to making the following annual payments in respect ofoperating leases:

2007 2006Land and Land andbuildings Other buildings Other

£'000 £'000 £'000 £'000Leases which expire:

Within one year 57 - 116 1Between two and five years 1,426 - 1,445 -After five years 33 - 37 -



AssumptionsThe assets of the whole scheme have been taken at market value and the liabilities have been calculatedusing the following principal actuarial assumptions:

2007 2006 2005Inflation 3.10% p.a. 2.70% p.a. 2.60% p.a.Salary increases 4.10% p.a. 3.70% p.a. 3.60% p.a.Rate of discount 5.40% p.a. 5.01% p.a. 5.44% p.a.Pensions in payment increases 3.10% p.a. 2.70% p.a. 2.60% p.a.Revaluation rate for deferred pensioners 3.10% p.a. 2.70% p.a. 2.60% p.a.

22. Pension schemeCitizens Advice participates in the NationalAssociation of Citizens Advice Bureaux Pension andAssurance Plan (1991), which is a defined benefitarrangement. The last full actuarial valuation ofthis scheme was carried out by a qualifiedindependent actuary as at 1 April 2004. This hasbeen updated on an approximate basis to 31March 2007 and the actual results of the triennialvaluation as at 1 April 2007 are due in November2007.

The 1 April 2004 valuation of the whole schemeidentified a deficit of £12,500,000. In order toaddress this deficit, changes to future benefits havebeen made to the scheme. From 1 April 2005active members saw a fall in their accrual rate from1/65 to 1/80 of their salary per year of service.Existing staff were given the option to buy back theextra 1/15 of their pension accrual rate with halfthe cost being met by Citizens Advice for thosemembers exercising this option. The schemecontinues to be open to new members of CitizensAdvice staff. As a result of these changes tobenefits, the employer contribution rate hasremained unchanged at 5.9% (2006: 5.9%) andthe employee contribution rate remains at 8.2% ofgross pay. In addition to the future servicecontributions, each participating employer isrequired to pay a share of the actuarial deficit overthe next ten years, based on active members as at

31 March 2004. Citizens Advice addressed its shareof the deficit in the fund by making a lump sumpayment during 2004/05 of £2,467,000.

As more than one employer participates in thescheme, Citizens Advice accounts for the schemeon a defined contribution basis in accordance withFRS 17 because the contribution requirement isaffected by a surplus or deficit in the scheme but itis not possible to identify its share of the underlyingassets and liabilities on a consistent and reasonablebasis. The contributions made by Citizens Adviceover the financial year have been £601,000 (2006:£628,000).

In order to comply with the requirement underFRS17 to disclose any available information aboutthe existence of the surplus or deficit in thescheme, and the implications of that surplus ordeficit for the employer, disclosure of assets andliabilities of the entire scheme as at 31 March 2007calculated in accordance with the requirements ofFRS17 is made. For the purpose of these financialstatements these figures do not impact on theactual 31 March 2007 balance sheet or on theactual performance statements for the year ended31 March 2007.

The amount due to the scheme at 31 March 2007was £nil (2006: £nil).



22. Pension scheme (continued)Balance sheet figures for the whole schemeThe following amounts at 31 March were measured in accordance with FRS17 and show the liability for allemployers in the scheme:

2007 2006 2005 £’000 £’000 £’000

Assets 64,104 57,802 46,233Liabilities (92,937) (77,172) (63,255)(Deficit) in scheme – (28,833) (19,370) (17,022)Net pension liability

AssetsThe assets of the whole scheme on an FRS 17 basis, as at 31 March were:

2007 2006 2005 £’000 £’000 £’000

Equities 47,915 43,053 33,722Gilts 11,604 12,812 9,654Corporate Bonds 2,473 – –Cash 2,112 1,937 2,857

64,104 57,802 46,233

The expected long term rates of return as at 31 March were:

2007 2006 2005Equities 7.40% 6.26% 6.69%Gilts 4.80% 5.01% 5.44%Corporate Bonds 5.40% 5.01% 5.44%Cash 4.50% 4.50% 4.75%

Movement in deficit figures for the whole scheme during the year ended 31 March 2007

2007 2006£’000 £’000

Deficit at beginning of year (19,370) (17,022)Movement in year:

Current service cost (1,414) (1,218)Net finance charge (449) (522)Contributions 980 1,156Actuarial (loss) (8,580) (1,764)

Deficit in scheme at 31 March (28,833) (19,370)



23. Related party transactionsThere have been related party transactions identifiedin accordance with FRS 8 and with TreasuryGuidance during the year.

East End Citizens Advice Bureaux is an independentcharity and a member of Citizens Advice and four of16 directors are also directors of Citizens Advice.There were transactions from Citizens Advice to EastEnd Citizens Advice Bureaux totalling £445,000(2006:£nil) in relation to cash advances pendingreceipt of local authority grants. At 31 March 2007,no funds were owed to Citizens Advice by E iast EndCitizens and Ciizens Advice Bureaux.

Citizens Advice is sponsored by the DTI. The DTI isregarded as a related party. During the year, CitizensAdvice has had no material transactions with the DTIother than the receipt of its Grant in Aid, and£15,789,000 for four specific projects as shown innote 3(a) (2006: £798,000, three specific projects).Citizens Advice had a number of transactions duringthe year with Citizens Advice Scotland, which is alsosponsored by the DTI.

The Friends of Citizens Advice Bureaux Trust is acharity established to raise funds for the benefit ofCitizens Advice Bureaux. The trust became dormanton 5 July 2005 when the activities of the trusttransferred to Citizens Advice. The trust paidCitizens Advice £nil (2006: £6,000) for distributionas bureau grants. At 31 March 2007 The Friends ofCitizens Advice Bureaux Trust owed Citizens Advice£nil (2006: £nil).

Citizens Advice International is a company whichwas registered in Belgium on 6 December 2004. Itwas established to provide support to CitizensAdvice organisations throughout the world. CitizensAdvice International has been administered fromCitizens Advice offices during the year. No chargehas been made for any expenditure incurred byCitizens Advice on behalf of Citizens AdviceInternational during the year. At 31 March 2007,Citizens Advice owed Citizens Advice International£nil (2006: £nil). One member of the council ofCitizens Advice International is a member of Citizens

Advice staff and there are currently nine membercountries of Citizens Advice International. CitizensAdvice International is not consolidated into theaccounts as it is a separate entity and Citizens Advicedoes not have the control over it.

Citizens Advice Limited is a subsidiary companyowned by Citizens Advice and all Citizens Advicenon-charitable trading is conducted through it.During the year ended 31 March 2007, it made aprofit of £22,000 which was covenanted to CitizensAdvice and recorded within Donations. At 31 March2007 Citizens Advice Limited owed Citizens Advice£118,000 (2006: £8,000). Citizens Advice Limited isnot consolidated on the grounds of materiality.

24. InvestmentsInvestments at market value comprised:

2007 2006£’000 £’000

Equities 2 –Citizens Advice Ltd 0 0

All investments were held in the UK. There were nomaterial individual investment holdings in the yearwhich would require disclosure.

The value of shares held in Citizens Advice Ltd is £2being two ordinary shares of £1 each.

contact usCitizens Advice115–123 Pentonville RoadLondon N1 9LZTelephone: 020 7833 2181www.citizensadvice.org.ukwww.adviceguide.org.uk

Citizens Advice is an operating name of The National Association ofCitizens Advice Bureaux. Registered charity number 279057.

Statement of Financial Activities Year ended 31 March 2007 · The financial statements are prepared...

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