HomePublicationsAnnual reportsCitizens Advice annual report 2006/2007Structure governance and mangement

The Trustee Board

Citizens Advice is governed by the Trustee Board which:

• sets the policy of the charity

• determines corporate strategy, including setting key strategic objectives

• making major decisions about the use of finances

• sets a framework for human resources policy. The membership of the Trustee Board as at year ended 31 March 2007 is set out below. The trustees are also known as directors of Citizens Advice for the purposes of Company Law.

* Member of the performance review and audit committee.

Recruiting and training trustees

Trustees are recruited in line with the terms laid out in the Articles of Association and the agreed election rules. A term of office is three years and trustees may stand for two terms.

Four trustees are elected by member bureaux at the Annual General Meeting. These are: the Chair, Treasurer and two trustees who receive payment for their work in a Citizens Advice Bureau. Member bureaux elect one trustee from each of the seven regions and Wales. The Board of the Northern Ireland Association of Citizens Advice Bureaux (NIACAB) appoints one trustee, and the Citizens Advice Equal Opportunities Committee appoints two trustees. In addition, two further trustees can be co-opted by the Trustee Board. All trustees are independent from management.

All trustees receive a trustee handbook. Citizens Advice runs an induction day for all new trustees, and our intranet site, CABlink, contains designated pages with information to support trustees in their roles.

Responsibilities of trustees and the chief executive officer

The trustees and chief executive (as chief accounting officer) are required by law to prepare annual financial statements that give a true and fair view of Citizens Advice and of the surplus or deficit of funds for that period. In preparing those financial statements, the trustees and chief executive are required to:

• select appropriate accounting policies and apply them consistently

• make judgements and estimates that are reasonable and prudent

• state whether applicable accounting standards have been followed, and explain where they haven’t been followed

• use a going concern basis to reporting unless it is inappropriate to presume the charitable company will continue.

The trustees and chief executive are also responsible for:

• keeping proper accounting records which disclose the financial position of Citizens Advice and enable them to ensure that the financial statements comply with the Companies Act 1985

• taking such steps to safeguard the assets of the charitable company and to prevent and detect fraud and other irregularities.

• ensuring the regularity and propriety of the public finances, as set out in the Financial memorandum

• the maintenance and integrity of the corporate and financial information included in the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Each Trustee confirms that:

   a) in so far as the Trustee is aware, there is no relevant audit information of which Citizens Advice’s auditors are unaware

   b) the Trustee has taken all the steps that he/she ought to have taken as a Trustee in order to make himself/herself aware of any relevant audit information and to     establish that Citizens Advice’s auditors are aware of that information.

Organisational structure and decision-making

Responsibility for day-to-day management matters and the implementation of policy is delegated to the chief executive, within a clearly understood framework of strategic control. The chief executive is supported by the Executive Board, which consists of Citizens Advice executive directors as set out below.

Executive directors

• David Harker OBE, Chief Executive

• Simon Bottery, Director of Communications

• Shani Fancett, Director of IT Services

• John Humphreys, Director of Human Resources

• Teresa Perchard, Director of Policy

• Margaret Sandford, Network Director (until July 2007)

• Judy Walker, Director of Advice

• Stephen Williams, Director of Finance and Company Secretary

There were no changes to the Executive Board during the financial year. Since 31 March 2007, a divisional restructuring was announced. As a result of this, the Executive Board will consist of the Chief Executive and four directors.

The new Board will comprise:

• Chief Executive: David Harker

• Membership Services Director: Shani Fancett

• Strategic Development Director: To be appointed

• Public Policy Director: Teresa Perchard

• Corporate Services Director: To be appointed

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Member bureaux also take part in the policymaking activity of the charity by passing resolutions at the Annual General Meeting. However, these resolutions need ratifying by the Trustee Board before implementation. The Trustee Board meets at least six times a year.

The Trustee Board can delegate responsibility for specified matters to the following committees: Membership and Standards Committee (which has responsibility for the membership to the Association of Bureaux and seeks to uphold standards of the Association), the Equal Opportunities Committee (which maintains an overview of Equality and Diversity issues) and the Performance Review and Audit Committee (which monitors the financial and non-financial performance of Citizens Advice).

Decisions taken by individual members or committees of the Trustee Board under delegated powers are recorded in written minutes available to the Trustee Board as a whole.

Employee involvement

Trustee Board papers, including agendas and minutes are available to all employees. Regular meetings are held between management and the union, and the union and its members to discuss Citizens Advice activities. Citizens Advice pays the costs of staff travelling to union meetings. An employee satisfaction survey is conducted annually and the results are used to influence management decisions in the future.

Equal opportunities

Citizens Advice recognises the positive value of diversity, promotes equality and challenges discrimination. The service-wide Fair Accessible Inclusive Relevant (FAIR) strategy 2004-2008 sets out how we intend to become a first point of contact for those experiencing discrimination. As such, Citizens Advice meets all of its legal responsibilities and welcomes employees from all parts of the community, particularly under-represented groups.

Citizens Advice has an Equality and Diversity policy in place, and is working towards achieving the positive about disabled people disability symbol by 31 March 2008. It ensures the full and fair consideration and treatment of all staff, including disabled persons, during their recruitment, training and career development with due regard to their personal attributes and abilities.

Risk management and internal controls

Systems and procedures have been established to identify, monitor and manage the risks that Citizens Advice faces. Trustees and executive directors periodically review and update risks and mitigating actions.

Citizens Advice’s operations expose the charity to a variety of financial risks. However, as it is a debt free organisation with a positive cash-flow, the impact of interest rate changes, debt market prices and liquidity are extremely low.

Citizens Advice has no exposure to equity securities. It holds no significant investments. Other price risks are not considered to be significant to Citizens Advice due to the nature of its activities.

The majority of our customers are member bureaux and as a consequence payment defaults are uncommon. Citizens Advice considers that the benefits of doing credit checks on other potential customers are out-weighed by the cost of the checks. Customers are granted thirty days credit, and subscriptions are cancelled on non-payment and a solicitor is contacted to recover any debt owed.

Citizens Advice receives the majority of funds in advance, and therefore debts can be met as they fall due. The surplus cash is invested for set periods of time to ensure certainty of future interest cash flows.

The Statement of internal control included within this document (see page x) sets out the risk and control framework.

Responsibility towards the environment

Citizens Advice aims to minimise its impact on the environment. We have improved our system of paper recycling and encourage electronic communication where possible. We are promoting a more sustainable working environment.

Our legal status

Citizens Advice is a registered charity and a company limited by guarantee. All member bureaux are members of Citizens Advice, and there are no other members. The maximum liability of each member is limited to £1. Citizens Advice is governed by its Memorandum and Articles of Association as amended in October 2000.

The registered name of the charity is The National Association of Citizens Advice Bureaux, and from 6 January 2003 the charity has used the operating name of Citizens Advice (previously it was referred to as NACAB). Citizens Advice was incorporated as a company limited by guarantee on 13 July 1979.

Citizens Advice commenced operations on 1 October 1979 at which date the assets and liabilities of the unincorporated National Association of Citizens Advice Bureaux were acquired as represented by the CAB General Fund (see note 17).

On 1 April 1991, the undertaking of the Greater London Citizens Advice Bureau Service (“GLCABS”), together with its assets and liabilities, was transferred to Citizens Advice and is represented in the London Region Reserves (see note 17).

The charity has a trading subsidiary, Citizens Advice Limited (formerly Advice Services Information Limited). Consolidated accounts have not been prepared as the balances of the company are not material to Citizens Advice.

Our administrative details

Company Number: 1436945

Registered Charity Number: 279057

Company Secretary: Stephen Williams

Registered Office:

115 –123 Pentonville Road, London N1 9LZ

Auditor:

PricewaterhouseCoopers LLP
Southwark Towers, 32 London Bridge Street
London SE1 9SY

Internal auditor:

BDO Stoy Hayward LLP
Emerald House, East Street, Epsom,
Surrey KT17 1HS

Bankers:

Barclays Bank PLC
1 Churchill Place, London E14 5HP

Solicitors:

Bates, Wells and Braithwaite
2–6 Cannon Street, London EC4M 6YH

Vizards Tweedie
42 Bedford Row, London WC1R 4JL

Davies Arnold Cooper
6–8 Bouverie Street, London EC4Y 8DD

Dickinson Dees
112 Quayside, Newcastle upon Tyne NE991SB

Pension Scheme Actuary
Jardine Lloyd Thompson Benefit Solutions
251 High Street, Orpington, Kent BR6 0NT

Connected charities and other related parties

The following charities are connected to Citizens Advice by way of common objectives and unity of administration:

• The Citizens Advice Bureaux Trust is a dormant entity.

• The Adviser is a separate registered charity with two directors in common and the same registered address as Citizens Advice. The Adviser is dormant and not consolidated in Citizens Advice accounts on the grounds that it is not material.

• The Friends of Citizens Advice Bureaux Trust is a separate registered charity at the same registered office as Citizens Advice. With effect from 5 July 2005 the operations of the trust ceased.

• Citizens Advice International is a company registered in Belgium. It was formed on March 2004, and from this time has operated from the registered office of Citizens Advice. Citizens Advice International provides support to all Citizens Advice organisations worldwide. The registered office is 57 rue de la Concorde, B–1050 Brussels, Belgium. Citizens Advice International is not consolidated in the financial statements, as Citizens Advice does not have any significant control over the company.

• Citizens Advice Limited is a trading company that administers sponsorship arrangements on behalf of Citizens Advice.

All material transactions between Citizens Advice and its connected charities are detailed in Note 23 of the accounts.

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