4.Information regarding directors and employees
7.Support cost breakdown by activity
13.Creditors:amounts falling due within one year
14.Creditors: amounts falling due after one year
18.Analysis of net assets between fund
21.Operating lease commitments
The financial statements are prepared in accordance with applicable accounting standards in the United Kingdom, the Statement of Recommended Practice (SORP) – Accounting and Reporting by Charities as revised in 2005, the Charities Act (1993), the Companies Act (1985), the accounts section of the Department of Business, Enterprise and Regulatory Reform (BERR) Financial Memorandum, and the Annual Reports and Accounts Guidance from the Central Accountancy Team and HM Treasury. The principal accounting policies, which have been applied consistently, except where noted are set out below:
(a) Accounting convention
The financial statements are prepared under the historical cost convention as modified to include the revaluation of current year investments.
(b) Fixed assets
Fixed assets are recognised in the statement of financial activities when they are receivable, in accordance with the SORP. The capital element of the BERR grant in aid received is recognised in the designated capital fund. This amount offsets the depreciation over the life of the asset.
All assets are held at historic cost less depreciation. Assets are reviewed each year to ensure they are fit for the intended purpose.
Only assets over £1,000 are capitalised. Depreciation is charged on a straight-line basis on the cost of assets over their estimated useful life. The estimated lives of the assets are as follows:
(c) Investments
Investment in subsidiary undertaking is valued at net asset value.
(d) Stock
Goods for resale and other consumable stock are considered to be of immaterial value, and have been charged in the statement of financial activities as the costs were incurred.
(e) Leases
Rental costs under operating leases are charged to the statement of financial activities in equal amounts over the periods of the leases.
(f) Pension costs
A multi-employer defined benefit scheme was in operation during the year. Having taken advice from the scheme’s actuary, Citizens Advice cannot identify its share of the underlying assets and liabilities on a consistent and reasonable basis. The disclosures under FRS 17 in this circumstance are shown in note 22. The expected cost of providing pensions is calculated periodically by a professionally qualified actuary. The operating costs of providing retirement benefits to employees are charged to the statement of financial activities in the year in which they are incurred as required by FRS 17.
On 1 April 2005, Citizens Advice introduced a defined contribution pension, which staff could opt to join. The employer’s contributions are charged to the statement of financial activities in the period in which they were incurred.
(g) Grants payable and receivable
Grants payable are made to local Citizens Advice Bureaux and other bodies, and the liability is recognised when the obligation arises although the grant may not be due.
Grants receivable are recognised when due and when any conditions for receipt are met. Any unexpended grant is carried forward in reserves. If any grant has been provided for a stated purpose, it is carried forward as restricted funds. Any unused grants not able to be used for the purpose determined by the funder are returned in accordance with the funder agreement.
(h) Deferred income
Deferred income relating to subscriptions is shown within the balance sheet. Other deferred income relates to restricted funding received in advance but where the related expenditure can only take place in a future accounting period.
(i) Legacies
Legacies are recognised when they are received or when notice is given from the executor that a payment is due, whichever is sooner.
(j) Trading activities
The trading activities of Citizens Advice, mainly the sale of information products, are exercised in the course of carrying out the primary purpose of the charity. The gross income and expenditure is shown in the Statement of Financial Activities as trading activities.
(k) Other income
All other income is accounted for on an accruals basis.
(l) Resources expended
All expenditure is accounted for on an accruals basis and has been classified under the charitable expenditure activity headings with reference to activities performed in the year. Costs of generating funds are those costs relating to fundraising for new donors or new projects.
Governance costs are those incurred in connection with the administration of the charity’s constitutional and statutory compliance.
Staff costs are all emoluments incurred. Other direct costs are non-staff costs incurred by each principal activity.
Irrecoverable VAT is treated as resources expended in the principal activity that incurred the original VAT.
Premises, fund-raising, central administration, IT support, human resources costs and pertinent corporate finance costs (staff and other costs), which are not directly attributable to a particular principal activity, have been fully allocated to departments and activities based on staff numbers of the principal activity as shown in note 7.
(m) Foreign exchange gains and losses
Citizens Advice uses Sterling for the large majority of its transactions. Occasionally, payments are required in foreign currencies and these are translated into Sterling on the date of the transaction. All amounts held at the balance sheet date are in Sterling with no gains or losses arising.
(n) Reserves
Unrestricted funds are expendable at the discretion of the trustees in furtherance of the charity’s objectives. Unrestricted
funds represent funds raised or grants awarded for no specified project, where the expenditure has not yet occurred. The expenditure will arise in subsequent financial periods. Transfers to and from designated funds are subject to the approval of the trustees.
Citizens Advice’s Management Statement and Financial Memorandum limit the level of BERR funds that can be carried forward to future years. Any additional balances in excess of the working balance carried forward require BERR approval.
There are no such carry forward restrictions on other unrestricted funds.
Designated funds are made up of the capital fund. The reason for holding this is outlined in note 17.
Restricted funds are awarded for a specified project, which will be declared by the donor, or restricted with their authority or with a restriction created by a legal process, although the scope of the project is still within the wider objectives of the charity. Income may be awarded in one year for expenditure in that or a subsequent year on a specified project.
(o) Consolidation
Citizens Advice Ltd is a subsidiary undertaking controlled by Citizens Advice. Each year, consideration is given as to whether users of the Statement of Financial Affairs can see a complete picture of the activities of the organisation without consolidating the accounts of Citizens Advice Ltd. As at 31 March 2008, the accounts have not been consolidated on grounds of materiality.
| 2008 | 2007 | ||
|---|---|---|---|
| £'000 | £'000 | ||
| Donation from connected charity | 55 | 22 | Citizens Advice Ltd |
| Donations from private individuals | 8 | 8 | Individual Giving Project |
| Total donations | 63 | 30 |
a) Government grants
| Funder | 2008 | 2007 | Purpose |
|---|---|---|---|
| £'000 | £'000 | ||
| Government department grants | |||
| BERR* | 21,470 | 21,470 | Grant in Aid** |
| BERR | 13,071 | 15,443 | Financial Inclusion Fund |
| BERR | 190 | European consumer rights project | |
| BERR | 69 | Sexual Orientation and Religious Beliefs | |
| BERR | 87 | Age Discrimination project | |
| Department of Communities and Local Government | 478 | 580 | The National Homelessness Advice Service |
| Department for Communities and Local Government | 153 | Homelessness Prevention Liaison Unit | |
| Department for Education and Skills | 67 | 70 | Millennium Volunteers project |
| Department for the Environment, Food and Rural Affairs | 46 | 49 | Rural development project |
| HM Prison Service | 20 | Reducing Offending Through Advice | |
| HM Revenue & Customs | 165 | 600 | General awareness and training |
| Welsh Assembly Government | |||
| Welsh Assembly | 700 | 700 | Welfare rights and better health |
| European grants | |||
| European Commission | 128 | 98 | European Consumer Centre |
| Total Government grants | 36,145 | 39,509 | |
| **£146,000 of the grant in this financial year has been used for the purchase of fixed assets. This is | |||
| shown in designated income in the Statement of Financial Activities. |
* During the year, the Department for Trade and Industry changed its name to the Department for Business, Enterprise and Regulatory Reform, known as BERR.
b) Grants from other public bodies
| Funder | 2008 | 2007 | Purpose |
|---|---|---|---|
| £'000 | £'000 | ||
| Devon County Council | 469 | 398 | Regional welfare benefit rights |
| Disability Rights Commission | 28 | 62 | Discrimination project work |
| Equality and Human Rights Commission | 67 | - | Discrimination project work |
| Financial Services Authority | 6 | - | Financial capability |
| Greater London Authority | 5 | - | Social policy projects |
| Kent Probation Service | 153 | 155 | Offender support services |
| Legal Services Commission | 189 | 163 | Offender support services |
| Legal Services Commission | 209 | 214 | SS employment consultancy+ |
| Legal Services Commission | 89 | 89 | SS training and delivery+ |
| London Borough of Newham | 9 | 17 | Information production |
| Office of Fair Trading | 150 | - | Financial capability |
| Ofgem | 27 | - | Financial capability |
| Remploy | 370 | 176 | Welfare rights and better health |
| SEEDA* | - | 5 | Offender support services |
| West Yorkshire County Council | 67 | 67 | Regional welfare benefits |
| 1,838 | 1,346 | ||
| + SS - Specialist Support | |||
| * SEEDA - South East England Development Agency |
c) Other grants
| Funder | 2008 | 2007 | Purpose |
|---|---|---|---|
| £'000 | £'000 | ||
| brought forward from previous page | 1,617 | 1,559 | |
| Provident Financial plc | 15 | - | National money advice project |
| Prudential plc | 232 | 233 | Financial literacy |
| Raise | - | 1 | Sundry projects |
| Resolution Foundation | - | 3 | Conference sponsorship |
| Resolution Foundation | 30 | - | Independent financial advice |
| The Royal Bank of Scotland plc | - | 7 | Citizens Advice annual conference |
| The Royal Bank of Scotland plc | 98 | - | Social policy creditor liaison |
| Royal British Legion | 1,089 | - | Veteran's welfare benefits advice |
| Scottish & Southern Energy plc | 450 | - | Fuel poverty innovation fund |
| Sundry donations | 31 | - | Sundry projects |
| v, the youth volunteering charity | 112 | 166 | Youth volunteer project |
| Wales Council for Voluntary Action | 4 | 4 | Voluntary sector partnership council |
| Yorkshire Building Society | - | 10 | National money advice project |
| Yorkshire Water | 25 | 25 | National money advice project |
| 3,703 | 2,008 | ||
| Total grants | 41,686 | 42,863 |
The trustees of Citizens Advice are the non-executive directors of the charitable company. No emoluments were paid to any non-executive directors (2007: Nil). Payments of £21,000 (2007: £17,000) were made to 19 (2007: 26) non-executive directors during the year in respect of travel expenses incurred. No trustee indemnity insurance was purchased.
Employee costs during the year:
| 2008 | 2007 | |
|---|---|---|
| £'000 | £'000 | |
| Wages and salaries | 12,895 | 12,502 |
| Social security costs | 1,212 | 1,220 |
| Pension costs (see note 22) | 576 | 601 |
| Temporary staff | 827 | 671 |
| 15,510 | 14,994 |
Pension costs shown above relate to amounts accrued in the year. Amounts were paid to the NACAB Pension and Assurance Plan (1991) a month in arrears. The amount paid in 2007/08 was £576,000 (see note 22).
The average number of people employed in each activity during the year was:
| Number | Number | |
|---|---|---|
| 2008 | 2007 | |
| Strengthening the bureaux nework | 235 | 229 |
| Delivering IT services | 58 | 57 |
| Bureaux and other grants | 2 | 2 |
| Developing our people | 38 | 37 |
| Influencing policy | 39 | 38 |
| Making information available | 32 | 31 |
| Trading activities | 5 | 5 |
| Governance | 3 | 3 |
| Costs of generating funds | 8 | 9 |
| Average number of persons employed | 420 | 411 |
In accordance with the requirements of the Financial Memorandum, the following information should be disclosed for named senior managers. Citizens Advice has identified all the executive directors as senior managers. 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 year
The 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 £65,000 were executive directors. All of the executive directors withheld their consent to be individually named in the disclosure of the information below.
| 2008 | 2007 | |
|---|---|---|
| £60,000 to £69,999 | 2* | 3 |
| £70,000 to £79,999 | 2 | 3 |
| £80,000 to £89,999 | 1 | 1 |
| £90,000 to £99,999 | 1* | - |
| £110,000 to £119,999 | 2* | 1 |
* Includes compensation for loss of office
Pension contributions paid by Citizens Advice into the NACAB Pension and Assurance Plan (1991) on behalf of senior managers in the financial year:
| Number | Number | |
|---|---|---|
| 2008 | 2007 | |
| up to £2,499 | 4 | - |
| £2,500 to £4,999 | 5 | 6 |
| £5,000 to £7,499 | 1 | 2 |
Citizens Advice does not pay any other pension contributions (including personal contributions) on behalf of any senior managers.
Grants were made to Citizens Advice member bureaux in the financial year as follows:
| Salaries | Other | Capital | 2008 | 2008 | 2007 | ||||
|---|---|---|---|---|---|---|---|---|---|
| Region | No. | £'000 | No. | £'000 | No. | £'000 | Total No. | £'000 | £'000 |
| North | 2 | 7 | 13 | 67 | 15 | 12 | 30 | 86 | 99 |
| North West | 20 | 6 | 4 | 1 | 4 | 4 | 28 | 11 | 89 |
| Midlands | 11 | 23 | 9 | 5 | 1 | 11 | 21 | 39 | 107 |
| East | - | - | 1 | 1 | - | - | 1 | 1 | 52 |
| South East | 2 | 6 | 3 | 1 | 1 | 30 | 6 | 37 | 105 |
| South West | 11 | 60 | 9 | 23 | 3 | 4 | 23 | 87 | 79 |
| London* | 8 | 47 | - | (3) | - | - | 8 | 44 | 413 |
| Wales | 8 | 67 | 4 | 9 | 1 | - | 13 | 76 | 89 |
| Total | 62 | 216 | 43 | 104 | 25 | 61 | 130 | 381 | 1,033 |
a) Partnership grants
| Salaries | Other | Capital | 2008 | 2008 | 2007 | ||||
|---|---|---|---|---|---|---|---|---|---|
| Region | No. | £'000 | No. | £'000 | No. | £'000 | Total No. | £'000 | £'000 |
| North | 2 | 7 | 13 | 67 | 15 | 12 | 30 | 86 | 99 |
| North West | 20 | 6 | 4 | 1 | 4 | 4 | 28 | 11 | 89 |
| Midlands | 11 | 23 | 9 | 5 | 1 | 11 | 21 | 39 | 107 |
| East | - | - | 1 | 1 | - | - | 1 | 1 | 52 |
| South East | 2 | 6 | 3 | 1 | 1 | 30 | 6 | 37 | 105 |
| South West | 11 | 60 | 9 | 23 | 3 | 4 | 23 | 87 | 79 |
| London* | 8 | 47 | - | (3) | - | - | 8 | 44 | 413 |
| Wales | 8 | 67 | 4 | 9 | 1 | - | 13 | 76 | 89 |
| Total | 62 | 216 | 43 | 104 | 25 | 61 | 130 | 381 | 1,033 |
* Included in the amount classified as Other payments to London bureaux, is an amount of (£3,000) for East End Citizens Advice Bureau. This relates to a slight underspend against the provision made in the 2007 accounts.
b) Other grants to member bureaux
| Purpose | Funder | 2008 | 2008 | 2007 |
|---|---|---|---|---|
| Total No. | £'000 | £'000 | ||
| Employment | A4E | 5 | 1 | - |
| Financial capability | Abbey National Charitable Trust | 14 | 53 | - |
| Independent financial advice | AEGON | 23 | 46 | - |
| Financial capability for lone parents | Barclaycard | 40 | 242 | 238 |
| Other financial capability | Barclaycard | 28 | 38 | - |
| Access strategy | BERR | - | - | 300 |
| Financial Inclusion Fund | BERR | 752 | 16,523 | 7,946 |
| Rural bureaux | BERR | - | - | 31 |
| Sexual orientation & religious beliefs | BERR | - | - | 85 |
| Volunteer of the Year awards | BERR | 6 | 3 | - |
| Social policy | Calouste Gulbenkian Foundation | - | - | 2 |
| Rural racial discrimination work | Carnegie UK Trust | 1 | 9 | - |
| Deaf awareness project | Credit Suisse First Boston | - | - | 3 |
| National Homelessness Advice Service | Department for Community & Local Government | 79 | 39 | |
| Millennium Volunteers | Department for Education & Skills | 88 | 9 | 11 |
| Rural bureaux | Department of the Environment, Food & Rural Affairs | 1 | 6 | 10 |
| Independent Complaints Advocacy Service refunds on closure | Department of Health | - | - | -19 |
| Leicester CAB | East Midlands Electricity | - | - | 8 |
| Financial capability | Friends Provident Fund | 57 | 131 | 127 |
| Reducing Offending Through Advice | HM Prison Service | - | - | 2 |
| Tax credits training | HM Revenue & Customs | 56 | 223 | 155 |
| Individual giving project | Individual donations | - | - | 1 |
| Financial inclusion training | Money Advice Trust | 75 | 125 | 56 |
| Offender support services | Northern Rock | 9 | 139 | - |
| Financial capability | OFGEM | 10 | 8 | - |
| Financial capability | Office of Fair Trading | 107 | 128 | - |
| Various projects | Other regional funders | 39 | 39 | |
| Rural bureaux | Prudential Assurance Company | - | - | 20 |
| Welfare rights & better health | Remploy | 197 | 392 | 120 |
| Volunteer of the Year awards | The Royal Bank of Scotland plc | - | - | 3 |
| Veterans' welfare benefits advice | Royal British Legion | 56 | 510 | - |
| Youth volunteer development | v | 78 | 146 | 11 |
| Welfare rights & better health | Welsh Assembly | 120 | 610 | - |
| Total | 1,841 | 19,420 | 9,110 |
c) Regional grants to Citizens Advice Bureaux
Regional grants to bureaux from County Councils are increasingly being paid direct to bureaux rather than through Citizens Advice.
| Region | Funder | 2008 | 2008 | 2007 |
|---|---|---|---|---|
| Total No. | £'000 | £'000 | ||
| South West | Devon County Council | 16 | 171 | 179 |
| Midlands | Nottinghamshire County Council | 2 | 28 | - |
| Total | 18 | 199 | 179 | |
| Total bureaux grants | 1,989 | 20,000 | 10,322 |
d) Largest grants paid to member bureaux
| Bureau name | Description of grant | 2008 | 2007 | |
|---|---|---|---|---|
| £’000 | £’000 | |||
| 1 | Barnsley | Financial Inclusion Fund | 205 | 110 |
| 2 | Birmingham | Financial Inclusion Fund | 379 | 129 |
| 3 | Blackpool | Financial Inclusion Fund | 220 | 95 |
| 4 | Bolton | Financial Inclusion Fund | 252 | 94 |
| 5 | Bradford | Financial Inclusion Fund | 470 | 226 |
| 6 | Caerphilly | Financial Inclusion Fund | 171 | 86 |
| 7 | Camden | Financial Inclusion Fund | 377 | 183 |
| 8 | Cardiff | Financial Inclusion Fund | 130 | 79 |
| 9 | Castle Morpeth | Financial Inclusion Fund | 102 | 79 |
| 10 | Combined Hospitals | Financial Inclusion Fund | 133 | 76 |
| 11 | Coventry | Financial Inclusion Fund | 178 | 86 |
| 12 | Crewe and Nantwich | Financial Inclusion Fund | 208 | 117 |
| 13 | Cumbria | Financial Inclusion Fund | 420 | 221 |
| 14 | Derwentside | Financial Inclusion Fund | 129 | 70 |
| 15 | Doncaster | Financial Inclusion Fund | 114 | 71 |
| 16 | Dudley | Financial Inclusion Fund | 160 | 71 |
| 17 | Gateshead | Financial Inclusion Fund | 312 | 176 |
| 18 | Hull | Financial Inclusion Fund | 350 | 176 |
| 19 | Leeds | Financial Inclusion Fund | 241 | 122 |
| 20 | Manchester | Financial Inclusion Fund | 285 | 132 |
| 21 | Middlesbrough | Financial Inclusion Fund | 195 | 66 |
| 22 | Newcastle | Financial Inclusion Fund | 316 | 123 |
| 23 | North Tyneside | Financial Inclusion Fund | 237 | 133 |
| 24 | Pendle District | Financial Inclusion Fund | 241 | 109 |
| 25 | Peterborough | Financial Inclusion Fund | 127 | 109 |
| 26 | Plymouth | Financial Inclusion Fund | 159 | 73 |
| 27 | Powys | Financial Inclusion Fund | 100 | 41 |
| 28 | Redcar and Cleveland | Financial Inclusion Fund | 211 | 83 |
| 29 | Rochdale | Financial Inclusion Fund | 102 | 50 |
| 30 | Rotherham | Financial Inclusion Fund | 208 | 130 |
| 31 | Salford | Financial Inclusion Fund | 186 | 106 |
| 32 | Sandwell | Financial Inclusion Fund | 198 | 95 |
| 33 | Sedgefield and District | Financial Inclusion Fund | 129 | 70 |
| 34 | Sheffield Debt Support | Financial Inclusion Fund | 496 | 236 |
| 35 | South Tyneside | Financial Inclusion Fund | 239 | 114 |
| 36 | Stockton | Financial Inclusion Fund | 171 | 100 |
| 37 | Stoke on Trent | Financial Inclusion Fund | 286 | 157 |
| 38 | Swansea | Financial Inclusion Fund | 118 | 48 |
| 39 | Telford & Wrekin | Financial Inclusion Fund | 108 | 47 |
| 40 | Torfaen | Financial Inclusion Fund | 124 | 48 |
| 41 | Trafford | Financial Inclusion Fund | 104 | 62 |
| 42 | Tynedale | Financial Inclusion Fund | 99 | 53 |
| 43 | Vale of Glamorgan | Financial Inclusion Fund | 110 | 67 |
| 44 | Wakefield | Financial Inclusion Fund | 224 | 112 |
| 45 | Walsall | Financial Inclusion Fund | 207 | 87 |
| 46 | Washington | Financial Inclusion Fund | 330 | 148 |
| 47 | Wear Valley | Financial Inclusion Fund | 106 | 44 |
| 48 | West Lancashire | Financial Inclusion Fund | 191 | 106 |
| 49 | Wolverhampton | Financial Inclusion Fund | 336 | 165 |
| 50 | Worcester | Financial Inclusion Fund | 109 | 35 |
e) Grants to other bodies
A grant of £40,000 was paid to Advice NI in relation to their equality and diversity work. Further grants were paid in relation to the Financial Inclusion Fund project to the following:
f) Reconciliation of financial activities
| 2008 | 2007 | |
|---|---|---|
| £'000 | £'000 | |
| Total grants payable to bureaux (note 5a - note 5c) | 20,000 | 10,322 |
| Total grants payable to other bodies (note 5e) | 1,006 | 721 |
| Direct staff costs | 690 | 359 |
| Other direct costs | 243 | 168 |
| Allocated staff costs | 107 | 54 |
| Allocated other costs | 357 | 329 |
| 22,403 | 11,953 |
Total resources expended for the year ended 31 March 2008:
| Staff costs | Other direct costs | Allocated staff costs | Other allocated costs | Total 2008 | |
|---|---|---|---|---|---|
| £'000 | £'000 | £'000 | £'000 | £'000 | |
| Strengthening the bureaux network | 6,508 | 1,709 | 2,651 | 522 | 11,390 |
| Delivering IT services | 1,976 | 1,476 | 0 | 0 | 3,452 |
| Bureaux and other grants | 690 | 21,249 | 107 | 357 | 22,403 |
| Developing our people | 2,014 | 1,668 | 452 | 648 | 4,782 |
| Influencing policy | 1,936 | 340 | 790 | 273 | 3,339 |
| Making information available | 1,698 | 333 | 745 | 97 | 2,873 |
| Trading activities | 297 | 858 | 36 | 18 | 1,209 |
| Governance costs | 114 | 182 | 0 | 13 | 309 |
| Costs of generating funds | 277 | 0 | 161 | 28 | 466 |
| 15,510 | 27,815 | 4,942 | 1,956 | 50,223 |
Total resources expended for the year ended 31 March 2007:
| Staff costs | Other direct costs | Allocated staff costs | Other allocated costs | Total 2007 | |
|---|---|---|---|---|---|
| £'000 | £'000 | £'000 | £'000 | £'000 | |
| Strengthening the bureaux network | 6,452 | 6,016 | 753 | 1,436 | 14,657 |
| Delivering IT services | 1,726 | 1,155 | 284 | 2,571 | 5,736 |
| Bureaux and other grants | 359 | 11,211 | 54 | 329 | 11,953 |
| Developing our people | 1,200 | 1,968 | 359 | 481 | 4,008 |
| Influencing policy | 1,723 | 491 | 593 | 180 | 2,987 |
| Making information available | 913 | 650 | 289 | 35 | 1,887 |
| Trading activities | 139 | 1,132 | 1 | 14 | 1,286 |
| Governance costs | 75 | 129 | 26 | 48 | 278 |
| Costs of generating funds | 36 | 32 | 12 | 5 | 85 |
| 12,623 | 22,784 | 2,371 | 5,099 | 42,877 |
Support costs breakdown for the year ended 31 March 2008:
| Premises | Fund-raising | IT Services | Human Resources | Finance | Total 2008 | |
|---|---|---|---|---|---|---|
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
| Strengthening the bureaux network | 592 | 70 | 1,736 | 365 | 410 | 3,173 |
| Delivering IT services | - | - | - | - | - | - |
| Bureaux and other grants | 88 | 9 | 251 | 56 | 60 | 464 |
Developing our people | 206 | 24 | 599 | 128 | 143 | 1,100 |
| Influencing policy | 199 | 23 | 580 | 123 | 138 | 1,063 |
| Making information available | 158 | 18 | 459 | 98 | 109 | 842 |
| Trading activities | 10 | 1 | 30 | 6 | 7 | 54 |
| Governance costs | 4 | 1 | 2 | 3 | 3 | 13 |
| Costs of generating funds | 36 | 4 | 103 | 22 | 24 | 189 |
| 1,293 | 150 | 3,760 | 801 | 894 | 6,898 |
Support costs breakdown for the year ended 31 March 2007:
| Premises | Fund-raising | IT Services | Human Resources | Finance | Total 2007 | |
|---|---|---|---|---|---|---|
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
| Strengthening the bureaux network | 933 | 203 | 1,822 | 272 | 838 | 4,068 |
| Delivering IT services | - | - | - | - | - | - |
| Bureaux and other grants | - | - | - | - | - | - |
Developing our people | 257 | 56 | 3 | 75 | 231 | 1,122 |
| Influencing policy | 331 | 72 | 646 | 97 | 297 | 1,443 |
| Making information available | 165 | 35 | 322 | 48 | 148 | 718 |
| Trading activities | 14 | 3 | 27 | 4 | 13 | 61 |
| Governance costs | 5 | 1 | 11 | 2 | 5 | 24 |
| Costs of generating funds | 8 | 2 | 15 | 2 | 7 | 34 |
| 1,713 | 372 | 2,846 | 500 | 1,539 | 7,470 |
All 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.
Governance costs (all unrestricted funds) are analysed as follows:
| 2008 | 2007 | |
|---|---|---|
| £'000 | £'000 | |
| Audit fees (internal and external) | 70 | 73 |
| Trustee meeting costs | 33 | 49 |
| Governance and leadership | 36 | 27 |
| Legal advice for trustees | 87 | 65 |
| Preparing statutory accounts and annual report | 11 | 9 |
| Strategic planning | 28 | 21 |
| Allocated staff costs | 11 | 8 |
| Allocated non staff costs | 33 | 26 |
| 309 | 278 |
Citizens Advice is a registered charity and is not liable to corporation tax.
Net outgoing resources for the year are stated after charging:
| 2008 | 2007 | |
|---|---|---|
| £'000 | £'000 | |
| Operating lease costs | ||
| Property | 1,336 | 1,890 |
| Motor vehicles | 16 | 18 |
| Office equipment | 3 | 3 |
| Depreciation | 159 | 167 |
| External auditors' remuneration | ||
| External audit fee | 27 | 34 |
| Other services | 2 | 2 |
| Non audit work | 1 | - |
| Cost | |
|---|---|
| At 1 April 2007 | 502 |
| Additions | 146 |
| Disposals | (169) |
| At 31 March 2008 | 479 |
| Depreciation | |
| At 1 April 2007 | 335 |
| Charge for the year | 159 |
| Disposals | (169) |
| At 31 March 2008 | 325 |
| Net book value at 31 March 2008 | 154 |
| Net book value at 31 March 2007 | 167 |
| 2008 | 2007 | |
|---|---|---|
| £'000 | £'000 | |
| Trade debtors | 1,151 | 649 |
| Other debtors | 151 | 109 |
| Prepayments and accrued income | 277 | 431 |
| HM Revenue & Customs | 86 | 68 |
| Amounts due from subsidiary undertakings | 251 | 118 |
| 1,916 | 1,375 |
Included in other debtors is £129,000 (2007: £109,000), which relates to 82 (2007: 81) staff season ticket or car loans. These are interest free and are recoverable through monthly payroll deductions. These include 1 senior officer who, at the balance sheet date, had a season ticket loan outstanding of less than £4,000.
| 2008 | 2007 | |
|---|---|---|
| £'000 | £'000 | |
| Trade creditors | 259 | 275 |
| Citizens Advice bureaux grants | 416 | 300 |
| Other creditors including taxation and social security | 489 | 512 |
| Accruals & deferred income | 1,687 | 3,287 |
| 2,851 | 4,374 | |
| Other creditors consists of: | ||
| Inland Revenue: PAYE | 169 | 170 |
| National Insurance | 175 | 176 |
| Other creditors | 145 | 166 |
| 489 | 512 | |
| Deferred income: | ||
| Deferred income at 1 April 2007 | 189 | 301 |
| Amount released from previous year | (189) | (301) |
| Incoming resources deferred in the year | 579 | 189 |
| Deferred income at 31 March 2008 | 579 | 189 |
| 2008 | 2007 | |
|---|---|---|
| £'000 | £'000 | |
| Citizens Advice Bureaux grants | 17 | 253 |
| 17 | 253 |
| 2008 | 2007 | |
|---|---|---|
| Property provisions | £’000 | £’000 |
| Provision at 1 April 2007 | 171 | 33 |
| Additional provision during the year | 53 | 171 |
| Provision released during the year | (171) | (33) |
| Provision at 31 March 2008 | 53 | 171 |
| Other provisions | ||
| Provision at 1 April 2007 | 321 | - |
| Additional provision during the year | 528 | 321 |
| Provision released during the year | (321) | - |
| Provision at 31 March 2008 | 528 | 321 |
| Total provisions at 31 March 2008 | 581 | 492 |
| At 1 April 2007 | Income | Expenditure | Transfer between funds | At 31 March 08 | |
|---|---|---|---|---|---|
| £'000 | £'000 | £'000 | £'000 | £'000 | |
| Unrestricted - BERR | 707 | 23275 | 22828 | - | 1,154 |
| Unrestricted - other | 2,017 | 1803 | 1408 | 175 | 2,587 |
| Unrestricted funds - designated | 152 | 162 | 160 | - | 154 |
| Total unrestricted funds | 2,876 | 25,240 | 24,396 | 175 | 3,895 |
| Restricted funds - BERR | 6,029 | 13,066 | 18,969 | - | 126 |
| Independent projects | 1,631 | 5,669 | 4,942 | (175) | 2,183 |
| Money Advice Trust funded projects | 468 | 613 | 922 | - | 159 |
| Regional Funds | 252 | - | 67 | - | 185 |
| National Homelessness Advice Service | 145 | 505 | 607 | - | 43 |
| Social policy projects | 63 | 130 | 22 | - | 171 |
| Training projects | 74 | 177 | 157 | - | 94 |
| Independent Complaints Advocacy Service | 23 | - | - | - | 23 |
| IT Services progrtamme | 53 | 100 | 47 | - | 106 |
| European Commission projects | 96 | 183 | 94 | - | 185 |
| Total restricted funds | 8,834 | 20,443 | 25,827 | (175) | 3,275 |
| Total funds | 11,710 | 45,683 | 50,223 | - | 7,170 |
The property provisions relate to dilapidations following office moves. Other amounts are £393,000 predominantly for the bureaux IT transformation programme, £135,000 pension fund levy and with some provision for final redundancies under the restructuring programme.
The unrestricted funds (BERR and other) represent the free funds of Citizens Advice, which are not designated for particular purposes.
BERR restricted funds incoming resource represents grants from the BERR for the European Consumer Centre Project, the Sexual Orientation and Religious Beliefs project, the Age Discrimination project and ten Financial Inclusion Fund projects.
Independent projects represent the projects around the country for both England and Wales service development initiatives, which are not funded by BERR.
Money Advice support strategy funds are funds received via the Money Advice Trust (MAT) and other funders for specialist consultancy and casework support and training to MAT agencies in England and Wales.
Regional managed funds are funds for local or geographically based initiatives
The Department of Communities and Local Government funds the National Homelessness Advice Service which is a joint project between Citizens Advice and Shelter to improve the quality of homelessness and housing advice to the public through second tier support and training to Citizens Advice Bureaux.
Policy and training funds comprise all funds received specifically to undertake training or social policy project activities.
The Independent Complaints Advocacy Service began in September 2003 in six of the nine local government regions. It provided grants and support to 32 bureaux to enable them to deliver independent advice and support to people with complaints against the National Health Service. The project ceased serving the public on 31 March 2006, and was finalised on 31 May 2006.
A distribution against outstanding claims is to be made once all participant bureaux returns have been received. IT services programme funds comprise any non-BERR funds received for the development of IT Services projects
The European Commission in relation to consumer work has ceased but new funding has been received to undertake work in relation to equalities projects
The transfer of funds is due to funds no longer required to be committed to restricted projects being released to unrestricted reserves.
The share capital of the Charity is £nil. The Charity is limited by guarantee with each member agreeing to contribute up to £1 each in the event of the charity being wound up.
Capital fund
The fund represents the balance of the capital element of BERR grants as shown in note 11. The balance as at 31 March 2008 was £154,000 (2007: £143,000)
| Unrestricted | Restricted | Total | ||||
|---|---|---|---|---|---|---|
| BERR | Other | Designated | BERR | Other | ||
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
| Fund balances at 31 March 2008 are | ||||||
| represented by: | ||||||
| Fixed assets | - | - | 154 | - | - | 154 |
| Current assets | 4,234 | 2,684 | - | 127 | 3,420 | 10,465 |
| Creditors: amounts falling due within one year | (2,482) | (97) | - | (1) | (271) | (2,851) |
| Creditors: amounts falling due after one year | (17) | - | - | - | - | (17) |
| Provisions | (581) | - | - | - | - | (581) |
| Fund balance | 1,154 | 2,587 | 154 | 126 | 3,149 | 7,170 |
The financial statements record the income and expenditure of Citizens Advice. Individual Citizens Advice Bureaux are not consolidated within these
accounts as they are independent legal entities funded directly and indirectly from their own sources and are accountable to their own members and funding bodies.
| 2008 | 2007 | ||||
|---|---|---|---|---|---|
| Land and buildings | Other | Land and buildings | Other | ||
| £'000 | £'000 | £'000 | £'000 | £'000 | |
| Leases which expire: | NoWrapNoWrapNoWrapNoWrapNoWrapNoWrap | ||||
| Within one year | 991 | - | 57 | 57 | - |
| Between two and five years | 559 | - | 1,426 | 1,426 | - |
| After five years | 16 | - | 33 | 33 | - |
Citizens Advice holds some leases in its name on behalf of some of the London bureaux. The lease costs are borne by the respective bureaux. However, in the event that these bureaux cease to operate, liabilities may arise in respect of responsibilities as leaseholder to the extent that they cannot be recovered from the management committees and local authorities. This liability is diminishing over time following the transfer of leases to the London Bureaux Trustee Boards.
On 27 March 2008, Citizens Advice’s defined benefit pension scheme was closed to new entrants future service accrual.
The scheme is a multi-employer scheme and the scheme’s actuary has advised the assets and liabilities are not able to be segregated for each contributing employer. Hence it is not possible to separately identify the assets and liabilities relating to Citizens Advice for the purposes of FRS17.
In closing the scheme, a recovery plan was agreed to fund the deficit. The contributions in that plan were determined by the scheme actuary and agreed by the pension fund trustees. Citizens Advice has agreed to make an annual contribution of £700,000 to meet the scheme’s deficit over the next twenty years. However, this amount may vary over time, dependent upon the results of future actuarial valuations of the scheme, the next of which is due as at 1 April 2010. The pension trustees also have the right to renegotiate the recovery plan if an actuarial report indicates that the existing recovery plan is no longer adequate. In view of this, the charity’s trustees consider that Citizens Advice has a liability at the year end that is contingent on future events that may materially affect the contributions required to be paid. Citizens Advice does not believe it can establish a reliable estimate of the year end liability under the scheme, hence Citizens Advice is not able to make a provision under FRS12.
Disclosures of the pension scheme required under FRS17 are set out in Note 22.
At 31 March 2008 Citizens Advice was committed to making the following annual payments in respect of operating leases:
National Association of Citizens Advice Bureaux Pension and Assurance Plan (1991)
Period Ending 31 March 2008
This note relates to the whole scheme including member Bureaux. The employer participates in the National Association of Citizens Advice Bureaux Pension and Assurance Plan (1991) which is a funded defined benefit arrangement. The last full actuarial valuation of this scheme was carried out by a qualified independent actuary as at 1 April 2007 and updated on an approximate basis to 31 March 2008. With effect from 31 March 2008 the scheme closed to future accrual.
The total of contributions made by the employers over the period is £911,050.
The best estimate of contributions to be paid by the employers to the scheme for the period beginning after 31 March 2008 is as follows:
a)Contributions by each employer in respect of expenses
The employer will pay amounts into the scheme equal to the levy payments made by the scheme to the Pension Protection Fund. Such amounts will be paid by the employer within a year of them being paid by the scheme. Management and administration expenses are payable in addition as and when they are due.
b)Contributions by the employers in respect of the shortfall in funding
In accordance with the recovery plan following the 1 April 2007 actuarial valuation, the sponsoring employers will pay total annual contributions of £800,000, payable monthly.
The contributions made by Citizens Advice over the financial year were £576,000 (2007: £601,000).
Present values of scheme liabilities, fair value of assets and deficit
| 31/03/08 £'000s | 31/03/07 £'000s | 31/03/06 £'000s | |
|---|---|---|---|
| 3Fair value of scheme assets | 59,926 | 64,104 | 57,802 |
| Present value of scheme liabilities | 87,794 | 92,937 | 77,172 |
| Surplus (deficit) in scheme | (27,868) | (28,833) | (19,370) |
| Deferred tax | |||
| Net asset (liability) to be recognised |
As all actuarial gains and assets are recognised, the surplus or deficit shown above is the amount that would be recognised in the balance sheet.
Reconciliation of opening and closing balances of the present value of the scheme liabilities
Period ending 31/03/08 | Period ending 31/03/07 | |
|---|---|---|
| Scheme liabilities at start of period | 92,937 | 77,172 |
| Current service cost | 2,699 | 1,414 |
| Interest cost | 4,934 | 3,900 |
| Contributions by scheme participants | 1,104 | 1,228 |
| Actuarial losses (gains) | (6,946) | 10,539 |
| Benefits paid, death in service insurance premiums and expenses | (2,165) | (1,316) |
| Past service costs | - | - |
| Business combinations | - | - |
| Curtailments | (4,769) | - |
| Settlements | - | - |
| Scheme liabilities at end of period | 87,794 | 92,937 |
Reconciliation of opening and closing balances of the fair value of scheme assets
Period ending 31/03/08 | Period ending 31/03/07 | |
|---|---|---|
| Fair value of scheme assets at start of period | 64,104 | 57,802 |
| Expected return on scheme assets | 4,326 | 3,451 |
| Actuarial gains (losses) | (8,354) | 1,959 |
| Contributions by employer | 911 | 980 |
| Contributions by scheme participants | 1,104 | 1,228 |
| Benefits paid, death in service insurance premiums and expenses | (2,165) | (1,316) |
| Business combinations | - | - |
| Settlements | - | - |
| Fair value of scheme assets at end of year | 59,926 | 64,104 |
The actual return on the scheme assets over the period ending 31 March 2008 was (£4,028,000).
Total expense recognised in profit and loss account
Period ending 31/03/08 | Period ending 31/03/07 | |
|---|---|---|
| Current service cost | 2,699 | 1,414 |
| Interest cost | 4,934 | 3,900 |
| Expected return on scheme assets | (4,326) | (3,451) |
| Past service cost | - | - |
| Curtailments | (4,769) | - |
| Settlements | - | - |
| Total expense recognised in profit and loss account | (1,462) | 1,863 |
Statement of total recognised gains and losses
Period ending 31/03/08 | Period ending 31/03/07 | |
|---|---|---|
| Difference between expected and actual return on scheme assets: gain (loss) | (8,354) | 1,959 |
| dth3Experience gains and losses arising on the scheme liabilities: gain (loss) | 6,306 | (95) |
| Effects of changes in the demographic and financial assumptions underlying the present value of the scheme liabilities: gain (loss) | 640 | (10,444) |
| Total amount recognised in statement of total recognised gains and losses: gain (loss) | (1,408) | (8,580) |
Assets
| 31/03/08 £'000s | 31/03/07 £'000s | 31/03/06 £'000s | |
|---|---|---|---|
| Equities | 43,668 | 47,915 | 43,053 |
| Gilts | 13,370 | 11,604 | 12,812 |
| Corporate Bonds | 2,790 | 2,473 | - |
| Cash | 98 | 2,112 | 1,937 |
| 3Total assets | 59,926 | 64,104 | 57,802 |
None of the fair values of the assets shown above includes any of the employers’ own financial instruments or any property occupied by, or other assets used by, the employers.
Assumptions
| 31/03/08 % per annum | 31/03/07 % per annum | 31/03/06 % per annum | |
|---|---|---|---|
| Inflation | 3.50 | 3.10 | 2.70 |
| Salary increases | - | 4.10 | 3.70 |
| Rate of discount | 6.40 | 5.40 | 5.01 |
| Allowance for pension in payment increases of RPI or 5% p.a. if less | 3.50 | 3.10 | 2.70 |
| Allowance for revaluation of deferred pensions of RPI or 5% p.a. if less | 3.50 | 3.10 | 2.70 |
The mortality assumptions adopted at 31 March 2008 are as follows:-
PxA92 projected using the "medium cohort" improvement factors appropriate to each member's year of birth.
These imply the following life expectancies at age 60:
Male currently age 40 - 27.9 years
Female currently age 40 - 30.7 years
Male currently age 60 - 26.8 years
Female currently age 60 - 29.7 years
Expected long term rates of return
The expected long term return on cash is determined by reference to bank base rates. The expected returns on gilts and corporate bonds are determined by reference to UK long dated gilt and bond yields. The expected rate of return on equities is determined by setting an appropriate risk premium above gilt/bond yields having regard to market conditions.
The expected long term rates of return applicable at the start of each period are as follows:
| 31/03/07 % per annum | 31/03/06 % per annum | |
|---|---|---|
| Equities | 7.40 | 6.26 |
| Gilts | 4.80 | 5.01 |
| Corporate Bonds | 5.40 | - |
| Cash | 4.50 | 4.50 |
| Overall for scheme | 6.76 | 5.92 |
Amounts for the current and previous four periods
There have been related party transactions identified in accordance with FRS 8 and with Treasury Guidance during the year.
East End Citizens Advice Bureau is an independent charity and member of Citizens Advice and has three trustees who are also directors of Citizens Advice. There were transactions between Citizens Advice and East End Citizens Advice Bureau totalling £1,172,000 (2007:£445,000) in relation to cash advances pending receipt of local authority grants, which Citizens Advice received on behalf of East End Citizens Advice Bureau. At 31 March 2008, £1,178 was owed to Citizens Advice.
Citizens Advice is sponsored by BERR. BERR is regarded as a related party. During the year, Citizens Advice has had no material transactions with BERR other than the receipt of its Grant in Aid and £13,071,000 for one specific project as shown in note 3(a) (2007: £15,789,000, four specific projects). Citizens Advice had a number of transactions during the year with Citizens Advice Scotland, which is also sponsored by BERR.
The Friends of Citizens Advice Bureaux Trust is a charity established to raise funds for the benefit of Citizens Advice Bureaux. The trust became dormant on 5 July 2005 when the activities of the trust transferred to Citizens Advice. The trust paid Citizens Advice £nil (2007: £nil) for distribution as bureaux grants. At 31 March 2008 The Friends of Citizens Advice Bureaux Trust owed Citizens Advice £nil (2007: £nil).
Citizens Advice International is a company which was registered in Belgium on 6 December 2004. Although not a related party under FRS 8, it is included here due to the connection of name and objectives. It was established to provide support to Citizens Advice organisations throughout the world. No
charge has been made for any expenditure incurred by Citizens Advice on behalf of Citizens Advice International during the year. At 31 March 2008, Citizens Advice owed Citizens Advice International £nil (2007: £nil). Citizens Advice International is not consolidated into the accounts as it is a separate entity and Citizens Advice does not have the power to control it.
Citizens Advice Limited is a subsidiary company owned by Citizens Advice and all Citizens Advice non-charitable trading is conducted through it. During the year ended 31 March 2008, it made a profit of £55,000 which was covenanted to Citizens Advice and recorded within Donations. At 31 March 2008 Citizens Advice Limited owed Citizens Advice £251,000 (2007: £118,000). Citizens Advice Limited is not consolidated on the grounds of materiality.
All investments were held in the UK. There were no material individual investment holdings in the year which would require disclosure. The value of shares held in Citizens Advice Ltd is £2 being two ordinary shares of £1 each representing 100 per cent of the share capital.
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