drep2006.doc

WINCHESTER CITIZENS ADVICE BUREAU


DIRECTORS’ REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH, 2006

Company registration No: 3029999 (England and Wales)Charity registration No: 1045169

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DIRECTORS’ REPORT AND FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH 2006

COMPANY INFORMATION

Directors As detailed in the Directors’ report

Secretary S Tong

Company number 3029999 (England & Wales)

Charity number 1045169

Registered office The Winchester Centre68 St Georges’ StreetWinchester, Hampshire. SO23 8AH

Independent examiner: PWP Accounting Services

Number Nine Nimrod WayFerndown, Dorset BH21 7SH

Business address The Winchester Centre68 St Georges’ StreetWinchester, Hampshire. SO23 8AH

Bankers Lloyds TSB Bank plc49 High StreetWinchester, Hampshire. SO23 9BU

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CONTENTS

Directors’ report Pages 1-5

Accountant’s report 6

Statement of Financial activities 7

Balance Sheet 8

Notes to the accounts 9-13

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DIRECTORS’ REPORTFOR THE YEAR ENDED 31ST MARCH, 2006

The directors present their report and financial statements for the period.

ConstitutionThe Winchester Citizens Advice Bureau is a company limited by guarantee and a registered charity governed by its memorandum and articles of association.

Objectives of the charityThe company is established for the charitable purpose of benefiting the community of Winchester and surrounding district by the advancement of education, protection and preservation of health and the relief of poverty, sickness and distress. The charity has the additional aim to ensure that individuals do not suffer through lack of knowledge of their rights and responsibilities or of the services available; or through an inability to express their needs effectively and equally to exercise a responsible influence on the development of social policies and service, both locally and nationally.

These are achieved through trained volunteers from all walks of life giving free, confidential, impartial and independent advice to the local community. These objectives remain unchanged from prior years.

The company is a member of Citizens Advice, the National Association of Citizens Advice bureaux, adhering to their principles and policies. A Trustee Board manages the company, which since the AGM in 2002 has been independent of both management and volunteers. The Bureau manager and deputy manager attend, but are not members of the Trustee Board. An Executive Committee, under the direction of the chairman, meets to provide management support and direction to the Bureau manager on a more frequent basis.

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DirectorsDirectors at the time of this report and those who have served during the year:

Mr M BearparkMrs S Blazdell Resigned 31/3/06Mr N J Campbell-WhiteRev. A Croad Resigned 31/3/06Ms A CumingMs J EverettMr R JohnstonMr P Ladds Chairman Mr R LoveMr J LuntMr D Marklew Deputy ChairmanMr D Mason Co-opted 7/9/05 – Resigned 1/2/06Ms J O’Kelly Appointed 1/2/06 (RELATE)Ms J Oliver Appointed 1/2/06 (University of Winchester)Mr J Ormiston Appointed 1/2/06 (WACA)Mrs M L Scott-Joynt Resigned 19/7/05Mr S Tong SecretaryMrs D Wooldridge Resigned 7/9/05

All directors are members of the Trustee Board.

Method of appointing directorsAll of the directors provide their time and skills voluntarily. When a vacancy arises a replacement volunteer is sought who can add to the Board’s overall skill base. Directors are formally appointing via approval at the regular board meetings.

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Review of the financial positionThe directors are pleased to report that the Winchester Citizens Advice Bureau (Winchester CAB) has fulfilled its objectives during the year within the resources made available to it. Financial Statements comply with statutory requirements and show a restricted funds deficit of £3,833 and an unrestricted funds surplus of £7,383; a total surplus of £3,550 for the year (2004-05 £12,061).

The restricted funds deficit for the year reduces the balance of funds carried forward, much of which is required to cover the book value of fixed assets still to be depreciated in the future. The main reason for the deficit this year has been an agreed extension to the Community Fund Outreach programme and utilisation of the remaining ROAD project funds.

The unrestricted funds surplus for the year arose from the receipt of grants for IT equipment, training, a series of small grants from local Parish Councils and a final donation from the Winchester Group for Disabled People on their dissolution. Significant investments in IT were again made, particularly the installation of a high speed scanner, integrated with the CASE system.

Reserves policyThe cumulative unrestricted funds surplus was £77,172 at March 2006. The trustees have determined that Winchester CAB should retain reserves, which at a minimum cover:

The previous 3 months expenditure, plus the book value of fixed assets less any realisable value

This policy is principally to enable the bureau to:

continue operations whilst awaiting the receipt of grants pay contractual liabilities in the event that grants were discontinued

or significantly reduced, whilst services were realigned to new levels of income

recover the potential loss on fixed investments in the event where continued funding was withdrawn

As at 31st March 2006 our policy requires £66,977 unrestricted reserves, which is slightly lower than our actual reserves. We remain grateful to Winchester City Council for its support upon which the company is almost entirely dependent to provide core services.

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Risk assessmentThe directors have considered the major risks to which the charity could be exposed and have reviewed the systems established to mitigate them. They are not aware of any irregularities, fraud involving management, employees or volunteers, or of any instance of actual or possible non-compliance with laws, regulations, contracts or agreements that might result in the charity suffering significant penalties or other loss.

Volunteer supportThe company is only able to provide it’s principal services through volunteers, who give their time at no cost. There are 26 fully trained volunteer advisors, 25 on the training program, 17 administrative advisors and receptionists, and 14 Trustee Board members in addition to legal advisors, all of whom provide their time and support to the Winchester CAB free of charge.

Business PlanIn February 2006, the business plan for the period ending March 2010 was reviewed and approved by the Board. This review confirmed the basic objectives of the company:

advise all those seeking bona fide advice through personal visits to the CAB, telephone, FAX or email

advise those who cannot make visits to the CAB offices through the Outreach program, funded by the Community Fund and others

influence development of social policies and services, locally and nationally

establish and maintain a fully trained team of 50 volunteer advisors maximise the benefit from implementing common systems and

processes such as Citizen Connect (CASE) and eGovernance

Pension SchemeThe company makes membership of the Hampshire County Council defined benefit scheme available to existing full-time and part-time, permanent employees. A full valuation of the scheme is carried out every 3 years, the most recent being made on 31st March, 2004.

The assumptions underlying the scheme are:Short term investment return: 7.70% pa equity/property assets

5.20% pa other asset classesRate of salary increases: 4.40% paRate of pension increase: 2.90% pa. in excess of GMPs

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At 31st March, 2004 the actuarial valuation of the Scheme’s assets was £1,925 Mill. This represents a short-shortfall against the funding target of £911 Mill which corresponds to a funding target ratio of 69%. The long-term rate of employer contributions was increased from 185% of employee member contributions to 210% following the shortfall highlighted during the previous valuation in 2001. The latest valuation will result in a further increase in the long term employer contributions to 295% (the same rate as for scheduled bodies); this is a 40% increase over current employer contribution rates.

The company has decided not to comply with the reporting requirements of FRS17 given the small number of employees participating in the Pension scheme and the additional reporting costs involved.

Auditors/Reporting accountantsThe directors have decided to introduce an Accountants Report on the accounts instead of an audit, which given the level of turnover is permitted under the Companies Act.

Directors’ responsibilitiesThe directors are required under Company law to prepare annual financial statements which give a true and fair view of the state of affairs in the company and of any profit or loss. In preparing these, the directors are required to:

Select suitable accounting policies and apply them consistently Make judgements and estimates that are reasonable and prudent Prepare the financial statements on a going concern basis unless it

is inappropriate to presume that the company will continue in business

The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy the financial position of the company at any time and to enable them to ensure that the financial statements comply with the Companies Act 1985. They are also responsible for safeguarding the assets of the company and for taking reasonable steps for the prevention and detection of fraud and any other irregularities.

This report has been prepared in accordance with the provisions of part VIII of the Companies Act 1985 as it relates to small companies. The directors confirm that with the exception of compliance with FRS 17 as indicated above, the accounts comply with the statutory requirements and the Statement of Recommended Practice – ‘Accounting and Reporting by Charities” (SORP 2005)

On behalf of the Board,

3rd May, 2006Steve Tong - Secretary

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ACCOUNTANT’S REPORT to the members on the un-audited accounts of the Winchester Citizens Advice Bureau

We report on the accounts for the year ended 31st March 2006 set out on pages 7-13.

Respective responsibilities of directors and reporting accountantsAs described on page 5, the company’s directors are responsible for the preparation of the accounts and they consider that the company is exempt from an audit. It is our responsibility to carry out procedures designed to enable us to report our opinion.

Basis of opinionOur work was conducted in accordance with the Statement of Standards for Reporting Accountants and so our procedures consisted of comparing the accounts with the accounting records kept by the company and making such limited enquiries of the officers of the company as we considered necessary for the purposes of this report. These procedures provide only the assurance expressed in our opinion.

OpinionIn our opinion:

(a) the accounts are in agreement with the accounting records kept by the company under section 221 of the Companies Act 1985(b) having regard to and on the basis of the information contained in these accounting records:

(i) the accounts have been drawn up in a manner consistent with the accounting requirements specified in section 249C(6) of the Act, and

(ii) the company satisfied the conditions for exemption from an audit of the accounts for the year specified in section 249A(4) of the Act and did not, at any time within the year fall within any of the categories of companies not entitled to the exemption specified in section 249B(1).

PWP Accounting ServicesReporting Accountants

Number Nine Nimrod WayFerndownDorset BH21 7SH

Date:

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Statement of financial activities for the year ended 31st March, 2006

This statement of financial activities complies with the requirements for an income and expenditure account as outlined in the Companies Act 1985

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Balance Sheet @ 31st March Notes Unrestricted Restricted Total Total Funds Funds 2006 2005 Fixed Assets 8 Tangible assets at net book value £24,713 £1,734 £26,447 £25,045 Current Assets Debtors 9 £1,405 £10,048 £11,453 £6,157Cash at bank and on hand £70,371 £15,152 £85,523 £71,782 £71,776 £25,200 £96,976 £77,939 Creditors Amounts falling due within 1 year 10 £19,317 £13,335 £32,652 £15,763 Net current assets £52,459 £11,865 £64,324 £62,176 Total assets less current liabilities £77,172 £13,599 £90,771 £87,221 Retained Funds 11 £77,172 £13,599 £90,771 £87,221

The financial statements were approved by the Board on 3rd May, 2006 and signed on its behalf by:

Mr P Ladds Mr S TongChairman Secretary

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MARCH 2006 1.0 Accounting Policies 1.1 Basis of preparation The accounts are prepared on an accruals basis under the historic cost convention. The charity has taken advantage of the exemption in Financial Reporting Standard No. 1 from the requirement to produce a cash flow statement on the grounds that it is a small company. The accounts have been prepared in accordance with the Statement of Recommended Practice

"Accounting and Reporting by Charities" (SORP 2005) issued in March 2005, FRSSE and the Companies Act 1985.

1.2 Incoming Resources Incoming Resources represent the amounts receivable for services provided by the charity, investment income, grants and voluntary income by way of donations. Rental and investment income are credited to the Statement of Financial Activities when they become receivable. Voluntary income is credited to income on receipt. Revenue grants are credited to income in the periods to which they relate; to the extent that

they are not fully expended they are held in reserve. 1.3 Resources expended Includes direct costs of employees and volunteers providing charitable services as well as

management, information, training and establishment costs. 1.4 Tangible fixed assets and depreciation All assets (or groups of associated items) costing more than £100 are capitalised. Depreciation is provided at rates calculated to write off the cost less the estimated residual value of each asset over its expected useful life, as follows: Computers & electronic equipment 25% straight line Other office equipment 15% reducing balance Fixtures and fittings 15% reducing balance 1.5 Pensions

The charity is not reporting Pension liabilities under the terms of FRS17 given that the scheme

is operated by the Hampshire County Council. The pension contributions disclosed in the accounts reflect the amounts requested by the Council during the year in accordance with SSAP 24.

1.6 Fund accounting Funds held by the charity are either:

Unrestricted general funds- these are funds which can be used in accordance with the charitable objects at the discretion of the directors.

Restricted funds- these are funds that can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by particular donors.

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1.7 Donated services Legal services are provided free of charge. The value of these services and the related

donation is determined by reference to the commercial fee that would otherwise be charged.

1.8 Allocation of costs Costs incurred by the charity are allocated between fund-raising and charitable costs as appropriate.

2.0 Grants receivable 2.1 Unrestricted funds 2006 2005 Winchester City Council for Core service operational costs £127,408 £127,158 Awards for All - grant towards the cost of purchasing and

installing a high speed scanner, printer and copier, integrated with CASE

£

5,000 Parish Councils within the District £1,500 Winchester Group for Disabled People £5,000 £2,000 Other £3,090 £0 £141,998 £129,158

2.2 Restricted funds 2006 2005 Community Fund revenue grant for the Outreach Service £ 51,945 £ 47,775 Community Fund capital grant for the Outreach Service £ - £ 1,464 Hampshire County Council Health for a Mental Health Advisor £ 20,500 £ 19,114 Winchester Housing Association for a Money Advisor £ 8,571 £ 8,102 Winchester City Council for a Money Advisor £ 12,184 £ 11,835 Winchester City Council capital grant to the Money Advisor program £ - £ 912 £ 93,200 £ 89,202 3.0 Investment Income 2006 2005 Bank interest receivable £ 4,823 £4,578

4.0 Other income 2006 2005 Charges made for hiring out rooms £ 1,993 £1,887 Prison Visiting cost contribution £ 994 £1,161 Fund raising and donations £ 476 £953 Donated professional services £ 1,500 £4,950 £ 4,963 £8,951

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Unrestricted Restricted Total Total Employment costs £70,322 £72,760 £143,082 £125,469Other staff costs £1,827 £4,974 £6,801 £4,898Office rental and other establishment costs £42,127 £10,697 £52,824 £48,662Volunteer expenses £8,946 £541 £9,487 £11,732Telephone & fax £4,630 £4,630 £4,119Depreciation £6,879 £2,015 £8,894 £6,868Accountancy/Audit donated 2005 £300 £300 £3,500Legal fees (donated) £1,500 £1,500 £1,450Fund raising £0 £0 £0 £20Other costs £7,870 £6,046 £13,916 £13,109

£144,401 £97,033 £241,434 £219,827


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8.0 Tangible fixed assets Fixtures Office & fittings equipment Total Cost At 1 April 2005 £10,760 £44,343 £55,103 Additions £983 £9,312 £10,296 Disposals -£2,850 -£2,850 At 31 March 2006 £11,743 £50,805 £62,548 Depreciation At 1 April 2005 £1,571 £28,486 £30,057 Charge for year £1,526 £5,800 £7,326 Disposals -£1,282 -£1,282 At 31 March 2006 £3,097 £33,005 £36,102 Net book value At 31 March 2006 £8,646 £17,800 £26,447 At 31 March 2005 £9,189 £15,857 £25,045 All fixed assets are used for charitable purposes. 9.0 Debtors 2006 2005 Other debtors Prepayments and accrued income £ 11,453 £ 6,157 £ 11,453 £ 6,157 10.0 Creditors: amounts falling within one year 2006 2005 Accruals and deferred income £32,652 £15,763 £32,652 £15,763

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11.0 Restricted funds The income funds of the charity include restricted funds comprising the following unexpended balances of grants, donations and gifts held on trust for specific purposes: Balance at Incoming Funds Balance at 1 Apr 05 funds expended 31 Mar 06 Capital Equipment £5,512 £0 -£2,015 £3,497 HCC Mental Health Advisor £3,436 £20,500 -£21,203 £2,733 WHA Money Advice £330 £8,571 -£8,901 £0 WCC Money Advice £2,210 £12,184 -£10,379 £4,015 Community Fund £5,177 £51,945 -£53,825 £3,297 ROAD program (1) £710 £0 -£710 £0 Rotary Club - Client support £57 £0 £0 £57 Total Restricted Funds £17,432 £93,200 -£97,033 £13,599 The HCC Mental Health Advisor Fund supports the provision of services for referrals from the

Community Mental Health Team relating to clients suffering from severe and enduring mental health problems

The WHA Money Advice Fund supports the provision of services for referrals from the Winchester Housing Association relating to clients in the area with rent arrear issues who could be facing possession proceedings.

The WCC Money Advice Fund provides monies to employ a project worker in order to deal with referrals from the Winchester City Council Housing Department, and to also provide training and support to members of that department relating to welfare benefits and money advice.

The Community Fund supports the provision of services to housebound elderly and disabled people living in Winchester and the surrounding area. The funds received are used to employ a project manager, a project adviser and a part-time administrative support worker together with their associated overheads. This project has now come to an end and the balance of unspent grants will be refunded by the CAB in due course.

12.0 Commitments The company occupies premises within The Winchester Centre under a licence agreement with

Winchester Area Community Action (WACA). The annual rental was £42,755 (2005 - £41,640) and is payable quarterly in advance. The licence is cancellable by either party with 3 months notice.

13.0 Related parties

The Winchester Citizens Advice Bureau (CAB) is a company limited by guarantee and a registered charity governed by its memorandum and articles of association and controlled by the Management Committee as disclosed in the annual report.

The Winchester (CAB) is closely connected to the National Association of Citizens Advice

Bureaux (NACAB) and subscribes for NACAB information services.

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drep2006.doc

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