Registered number: 02524320 Charity number: 1004114
CUMBRIA LAW CENTRE
(A Company Limited by Guarantee)
UNAUDITED
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
CUMBRIA LAW CENTRE
(A Company Limited by Guarantee)
CONTENTS
| Page | |
|---|---|
| Reference and Administrative Details of the Charity, its Trustees and Advisers | 1 |
| Trustees' Report | 2 - 9 |
| Independent Examiner's Report | 10 |
| Statement of Financial Activities | 11 |
| Balance Sheet | 12 |
| Statement of Cash Flows | 13 |
| Notes to the Financial Statements | 14 - 26 |
CUMBRIA LAW CENTRE
(A Company Limited by Guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2024
Trustees
V A Lewis
J Masson J R Nicol, Chair
J Hunston, Treasurer
L E Rutherford
S Watson, Vice Chair (resigned 10 June 2024) K Lockney (resigned 2 August 2023) Michelle Wright
Company registered number 02524320
Charity registered number 1004114
Registered office
8 Spencer Street Carlisle Cumbria CA1 1BG
Accountants
Seavor (South Cumbria) Limited The Office Mardale Road Penrith Cumbria CA11 9EH
Bankers
Clydesdale Bank 82 English Street Carlisle Cumbria CA3 8HP
Page 1
CUMBRIA LAW CENTRE
(A Company Limited by Guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2024
The Trustees present their annual report together with the financial statements of the Cumbria Law Centre for the 1 April 2023 to 31 March 2024. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Since the Charity qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
Objectives and activities
Policies and objectives
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
The Law Centre is established for the following purposes:
(i) to afford those without or lacking access to advice, information or education the ability and opportunity to protect and defend their legal rights and entitlements and to obtain redress for wrongs they have suffered
(ii) the advancement of education amongst persons resident or working in the benefit area.
(iii) the advancement of such other charitable purposes as are beneficial to the persons resident or working in the benefit area.
Our purpose is to provide free, easily accessible legal services to local people. Our emphasis is on combating poverty, oppression and social exclusion.
We hope, through the use of legal means, to achieve social change for the better.
Strategies for achieving objectives
Cumbria Law Centre endeavours to service those who work or live in Cumbria, though funding across the country varies. As a Law Centre, our emphasis is on tackling difficulties of poverty and oppression, and we make a priority of addressing the needs of those who cannot access legal help from private solicitors, and those who find it difficult for other reasons of exclusion to access services.
We deliver our core initial legal advice in three ways:
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Telephone advice line (01228 515129) open to any resident of Carlisle, Allerdale, Copeland and Eden for advice on any weekday morning. We receive up to 30 new queries every day.
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Working in partnership with organisations such as Eden Housing Association including appointments at their premises and home visits. Home visits have grown as a key way of accessing vulnerable clients.
We conduct in-depth casework to a specialist level in the following areas of law: housing, employment, welfare benefits, debt. Our casework activity is funded chiefly through our contract with the Legal Aid Agency.
Page 2
CUMBRIA LAW CENTRE
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
Achievements and performance
Review of activities
The running of the Law Centre continues to be a challenging task, one mirrored up and down the county in other centres and advice agencies. Whilst there is currently a growing need for specialist advice in the community, funding remains a key challenge but one into which we have put very considerable effort in the last year. We have had considerable success too and achieved a slightly more stable financial position as well as funding some vital new strands of work. We have achieved more than £1.1 million in financial benefits for some of the most vulnerable, socially isolated and economically poor people in our county. We have helped more than 200 individuals and families to avoid the impending loss of their home and taken more than 300 people from a position of poverty and hopelessness to a position of some financial security, offering them a certain amount of hope for the future. So far, we have maintained our funding relationship with the new Cumberland Council, retained our legal aid contracts and added to this new strands of funding through the Access to Justice Foundation, as well as adding to the team. This has been a good year in all ways, as you will see below.
Page 3
CUMBRIA LAW CENTRE
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
Achievements and performance (continued)
Our performance against objectives:
Main objectives for the year were:
Service Delivery
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1) Succeed in attaining new Legal Aid housing contract covering early help and court duty – Fully achieved.
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2) Secure new LA contract in general housing work – Fully achieved.
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3) Develop our funded housing work in complex cases including certificated work – Fully achieved.
4) Develop delivery of employment law and potential for charging for services - charging review to be
carried out by September 2023 – Achieved –our service was very effectively delivered and it was agreed that there is ongoing need for a free access employment advice for those on low incomes.
– 5) Retain our cooperation with Eden Housing Association concentrating on the most specialist advice Partly achieved – we have maintained a funded partnership but at a much smaller scale than before.
6) Secure funding and being work on upgrades and redecoration of our building – Partly achieved – significant funding has been secured and some repairs undertaken but the main work on the inside of the building is likely to begin late in 2024.
7) Recruit to bolster legal services in housing as well as supervisory and management options – Fully achieved – Dan Abel has provided both a new qualified solicitor as well as line management in the casework team. We have also recruited a new trainee solicitor, Gareth Morris.
8) Build on recruitment to deliver housing law in a more county-wide way, including connecting people
with specialist services in the south of the county – Partly achieved – we have certain made progress and we continue to be the front line court service for the south of the county.
9) Ensure compliance with Lexcel Standards - Fully achieved - one of our best ever Lexcel reports was achieved in February 2024.
Finance/Funding
1) Set and achieve a budget that represents a small surplus (£20k) across the years 2022-2024 – Fully achieved – in fact our surplus was well in excess of this can be seen in the following accounts.
2) Secure Lottery funding for building work and enhanced services or equivalent funding – Partly achieved – some of our funds for building work have contributions from the Big Lottery but our main bid to BLF will now be in 2025.
3) Secure continued funding from Cumberland and attempt to regain funding in Westmorland and Furness areas – Partly achieved – we have secured ongoing Cumberland funding but as yet have not regained funding from W&F Council.
4) Cash position at end of 2024 to be at least £150k including reserves – Fully achieved.
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5) Bid for ‘Improving Outcomes’ grant - Fully achieved and our bid was successful.
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6) Achieve full cost recovery in all possible funding bids – Fully achieved.
Governance
Support ManCo’s development, governance work and recruitment – co-opt two new members to Manco before AGM in Nov 2023 – Partly achieved – though this was not possible for the AGM in 2023, it has been done in advance of the 2024 AGM.
Manco strategic review – Partly achieved – some considerable work was done on aims, objectives and management and supervision structures of the centre.
Outreach
1) Further develop links and referral activity with local private practice – Not achieved – whilst we maintain an excellent working relationship with the sector, we did not build further on that in any formal way. Instead, emphasis was placed on vital funding work and recruitment.
2) Develop initiative to promote the centre to the public and develop membership as a result – Not achieved – but through our recruitment we will greatly improve our ability to develop social media work, a key element of such promotional initiatives.
3) Continue volunteer programs with students and individuals and explore further links with University – Fully achieved – it has been another remarkable year for all of our volunteer programmes, mainly thanks to the excellent work of our volunteer coordinator, Fiona McCrum.
Page 4
CUMBRIA LAW CENTRE
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
Achievements and performance (continued)
In conclusion
The centre is currently very busy! Recent recruitment has brought new life and energy to the office and the staff group and the demand coming to our door and through the courts has also steadily risen. In addition, the volunteer activities are always oversubscribed, and always receive glowing feedback from participants. Of course, all of this requires a significant level of funding in order to keep a service running and to provide all of those varied volunteering experiences. That is a goal on we have concentrated in the last two years. The result as you will see is that we have generated a not-insignificant cash surplus this year, though it should be said that much of that money is forward-committed for work in 2024. However, we have, in recent times, been fortunate to be chosen by the Access to Justice Foundation as a grantee in two major schemes, the ‘Improving Lives Through Advice’ and ‘Improving Outcomes Through Legal Services’ funds. These projects bring together money from Ministry of Justice and Big Lottery and are administered and run by ATJF. They continue the work begun under the Community Justice Fund and our centre has been a very fortunate recipient of funds at almost every stage. The focus of the money is to help provide free advice to vulnerable people and, where possible to keep them out of the most sapping, worrying and indeed expensive stages of legal process. In short, it is an attempt to use legal advice to prevent serious social and economic consequences for those who can least afford them.
Through our court work under the Housing Loss Prevention Scheme, we have continued to provide expert ‘on the day’ representation to those facing possession and eviction proceedings and we partner with Citizens Advice Allerdale in the west of the county to cover all such sessions. This is a lifeline to so many who find themselves facing potential homelessness.
Our employment work, through Adrian Farley, continues to receive excellent feedback from clients and, at the time of writing, we are confident that we will be able to bolster this work with some legal aid-funded discrimination casework during 2025.
Our welfare benefits and debt work is delivered to ‘walk in’ clients and though a number of referral and partner projects, working with Eden Housing Association, the Youth Hub and many other partners to meet the complex needs of those service users. We can, as ever, be immensely proud of the work we have done in across all areas of law.
We have, as mentioned, been able to do all of this whilst also improving our cash position and our aim is to do so again in the year to March 2025. This will be a tough task but we are confident. However, we must work hard to find the next partnerships and fundable projects beyond that date and that search is already underway. Along with the incredible support from Access to Justice Foundation, we must also thank Indigo Trust for their enormous help over a number of years. Just when we thought an already generous grant was ending, we were delighted to receive further funding that took us through to the end of 2024. This has really been essential support and we sincerely appreciate their trust in us and their support, especially during challenging moments.
Finally, as ever, we would like to thank those who have contributed to us financially during 2023/24, namely:
Page 5
CUMBRIA LAW CENTRE
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
Achievements and performance (continued)
Cumberland Council Access to Justice Foundation The Legal Aid Agency Access to Justice Foundation Eden Housing Association
We sincerely appreciate your help and understanding of our work and our needs, and we could not serve our community without your support.
As we do every year, we have also produced a small volume of case studies that go some way to describing the difficulties faced by our clients, our work in response and the help provided to us by our volunteers.
We really encourage you to read that in conjunction with this report and attached accounts to understand the human and legal aspects of our work better. It will be available electronically via our website and Facebook page from the date of our AGM page or you can email petemoran@cumbria-law.org.uk to have a copy sent to you. The stories told in there are important and often very moving.
Financial review
Going concern
After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
Reserves policy
In order to enable the uninterrupted service of the charity, free reserves equivalent to three months of the total unrestricted expenditure should be maintained. If the level of free reserves falls below this level, the trustees and management committee will be informed at the first available meeting and action shall be decided upon to obviate any risk to service.
Principal funding
The Law Centre's chief sources of income are the Legal Aid Agency, Eden Housing Association and the local authorities, Carlisle City Council and Copeland Borough Council. The Management Committee are grateful to all three local authorities for their continuing support for the Law Centre's vital work. In this financial year the Law Centre has also benefited from funds received from Indigo Trust and The Big Lottery as well as Cumbria Community Foundation. In order to sustain all of the Law Centre's activities, additional funding is required, and the current business plan contemplates successful bids for new funding over the next few years. We continue to work hard to find alternative sources to help us continue as much of our provision as possible.
Material investments policy
Cumbria Law Centre operates in accordance with the powers detailed within its Memorandum and Articles of Association.
Page 6
CUMBRIA LAW CENTRE
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
Principal risks and uncertainties
The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks. The Trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
Structure, governance and management
Constitution
Cumbria Law Centre is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on the 20 July 1990. The Memorandum and Articles of Association comprise the governing document., as updated in November 2022.
Methods of appointment or election of Trustees
The management of the Charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Memorandum of Association. Under the Law Centre's Articles of Association the Trustees are known as the management committee. The committee is re-elected each year at the Annual General Meeting. The Law Centre seeks to ensure that its management committee is representative of the communities that it serves.
Organisational structure and decision-making policies
There shall be no fewer than five, nor more than thirteen members of the Trustees (management committee). Following the amendments to the Constitution made in 2014, Trustees are no longer drawn from particular organisations but are chosen from the community on their own merits following open recruitment.
Policies adopted for the induction and training of Trustees
The Law Centre recognises the need for its management committee members to be familiar with the work of the organisation. The Law Centre runs an annual Staff and Trustee training day and arranges other in-house training to meet identified needs. Trustees are also encouraged to attend external training to develop their skills and to keep their knowledge current. An annual budget is set aside for Trustees' training.
Related party relationships
There are none to declare.
Page 7
CUMBRIA LAW CENTRE
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
Structure, governance and management (continued)
Risk management
The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks. The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
The Trustees have examined the major strategic, business and operational risks which the charity faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks.
The major risk to which the charity is exposed is the financial risk of lack of committed long term core funding. While the charity is funded by the Legal Aid Agency (formerly the Legal Services Commission), or by service level agreements with local authorities, the provision of services is always dependent upon the goodwill and continued support of these bodies. The trustees have been active in ensuring that the requirements of the ongoing Legal Aid Agency contracts have been met by staff. This has been a key piece of work during this period.
In order to mitigate the risk, the management committee through the Head of Centre seeks to meet all contract and agreement targets, and to negotiate continued realistic funding, which will allow service provision and the Law Centre to meet its constitutional objectives.
Trustees' indemnities
The charity has insurance that provides an indemnity for a trustee against any liability for negligence, default, breach of duty or breach of trust by them in relation to the charity.
Members' liability
The Members of the Charity guarantee to contribute an amount not exceeding £1 to the assets of the Charity in the event of winding up.
Page 8
CUMBRIA LAW CENTRE (A Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Statement of Trustees, respon5ibilitie$ The Tru5tee5 (who are 74lso the directors of the Charity for the purposes of company law) are responsible for preparing che Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standard5 (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial sratements for each financial period. Under company law. the Trustees must not approve the financial statements unless they are sat15fied that they give a true and fair view of the state of affair5 of the Charity and of ITJ incorning resources and application of resources, including its income and expenditure, for that period. In preparing these financial scatements, the Trustees are required to: selec¢ suitable accouncing policies and then appty them consistently., observe the methods and principles of the Charities SORP IFRS 102}'. make judgment5 and accouncing estimates that are reasonable and prud¢n state whether applicable UK Accounting St2nd3rds IFRS 1021 have been followed, subject to any material departures disclosed and explained in the financial scatements,. prepire the financial statements on the going Concern basis unle55 It is inappropriate to presume that the Charity will ¢ontinue in busSnes5. The Trustees are responsible for keeping adequate accounting records that are sufficlent ro show and explaln the Charity's transactions and disclose with reasonable accuracy at any ts'me the financial position of the Charity and enable them co ensure that the financial statements comply with the Companies Act 2006. They are a150 responsible for safeguarding the assets of the Charity and hence for caking reasonable steps for the prevention and detectlon of fraud and other irregularities. Approved by Order of the members of the board of Trustees on 12 November 2024 and signed on their behalf by- za J Nlcol Chair Page 9
CUMBRIA LAW CENTRE
(A Company Limited by Guarantee)
INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 MARCH 2024
Independent Examiner's Report to the Trustees of Cumbria Law Centre ('the Charity')
I report to the charity Trustees on my examination of the accounts of the Charity for the year ended 31 March 2024.
Responsibilities and Basis of Report
As the Trustees of the Charity (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Charity's accounts carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent Examiner's Statement
Since the Charity's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the ICAEW, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
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accounting records were not kept in respect of the Charity as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
This report is made solely to the Charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Charity's Trustees those matters I am required to state to them in an Independent Examiner's Report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity's Trustees as a body, for my work or for this report.
Signed: Dated: 12 November 2024 Jonathan Miller FCA DChA
Seavor (South Cumbria) Limited
Chartered Accountants
Page 10
CUMBRIA LAW CENTRE
(A Company Limited by Guarantee)
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2024
| Note INCOME FROM: Donations and legacies 3 Charitable activities 4 Investments 6 Other income 7 TOTAL INCOME EXPENDITURE ON: Charitable activities 8 TOTAL EXPENDITURE NET MOVEMENT IN FUNDS RECONCILIATION OF FUNDS: Total funds brought forward Net movement in funds TOTAL FUNDS CARRIED FORWARD |
Unrestricted funds 2024 £ 189 331,843 688 1,799 334,519 240,158 240,158 94,361 66,743 94,361 161,104 |
Restricted funds 2024 £ - 182,693 - - 182,693 94,837 94,837 87,856 17,186 87,856 105,042 |
Total funds 2024 £ 189 514,536 688 1,799 517,212 334,995 334,995 182,217 83,929 182,217 266,146 |
Total funds 2023 £ 428 331,384 316 856 332,984 367,810 367,810 (34,826) 118,755 (34,826) 83,929 |
|---|---|---|---|---|
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 14 to 26 form part of these financial statements.
Page 11
CUMBRIA LAW CENTRE (A Company Limlted by Guarantee) REGISTERED NUMBER: 02524320 BALANCE SHEET AS AT 31 MARCH 2024 2024 2023 Note FIXED ASSETS Tangible assets CURRENT ASSETS 13 9,768 9,466 Debtors 14 9,672 267,116 3,257 92,904 Cash at bank and in hand 276,788 96,161 CREDITORS.. amouncs falling due within one year 15 (20,410) {21,698) NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES 256,378 74,463 266,146 83,929 NET ASSETS 266,146 83,929 TOTAL ASSETS 266,146 83,929 CHARITY FUNDS Restricd funds Unrestrlcted funds 16 105,042 161.104 17.186 66.743 TOTAL FUNDS 266,146 83,929 The Charlty was entitled to exemption from audit under section 477 of the Companies Act 2006. The members have not requSred the company to obtain an audit for the year in question in accordance with section 476 of Companl¢s Act 2006. The Trustees acknowledge their responsrbilitie5 for complying with che requirements of the Act with respect to accounting records and preparntion of financial $tatements. The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime. The financial statemencs were approved and authorised for issue by the Trustees ¢n 12 November 2024 and ssgned on their behalf by.. J Nicol - Chair The notes on page5 14 to 26 form part of these financial statements. Page 12
CUMBRIA LAW CENTRE
(A Company Limited by Guarantee)
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024
| Cash flows from operating activities Net cash used in operating activities Cash flows from investing activities Dividends, interests and rents from investments Net cash provided by investing activities Cash flows from financing activities Net cash provided by financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year The notes on pages 14 to 26 form part of these financial statements |
2024 £ 173,524 688 688 - 174,212 92,904 267,116 |
2023 £ (24,694) 316 316 - (24,378) 117,282 92,904 |
|---|---|---|
Page 13
CUMBRIA LAW CENTRE
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
1. General information
Cumbria Law Centre is a company limited by guarantee, domiciled in England and Wales, registration number 02524320. It is a registered charity number 1004114. The company's registered office is 8 Spencer Street, Carlisle CA1 1BG.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Cumbria Law Centre meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
2.2 Going concern
Enter text here regarding going concern basis...
2.3 Income
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
2.4 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
2.5 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
Page 14
CUMBRIA LAW CENTRE
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
2. Accounting policies (continued)
2.6 Taxation
The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
2.7 Tangible fixed assets and depreciation
Tangible fixed assets costing £NIL or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.
Depreciation is provided on the following bases:
- Freehold property 10% reducing balance - Fixtures and fittings 20% reducing balance and 20% straight line - Property improvments 17% reducing balance
2.8 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
2.9 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
2.10 Liabilities and provisions
Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.
Page 15
CUMBRIA LAW CENTRE
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
2. Accounting policies (continued)
2.11 Pensions
The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.
2.12 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
3. Income from donations and legacies
| Donations Total 2023 |
Unrestricted funds 2024 £ 189 428 |
Total funds 2024 £ 189 428 |
Total funds 2023 £ 428 |
|---|---|---|---|
4. Income from charitable activities
| Legal Services Grants Total 2024 Total 2023 |
Unrestricted funds 2024 £ 34,179 297,664 331,843 281,384 |
Restricted funds 2024 £ - 182,693 182,693 50,000 |
Total funds 2024 £ 34,179 480,357 514,536 331,384 |
Total funds 2023 £ 55,898 275,486 |
|---|---|---|---|---|
| 331,384 | ||||
Page 16
CUMBRIA LAW CENTRE
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
5. Grants
| Carlisle City Council Copeland Borough Council Eden Housing Association The Indigo Trust Access to Justice Foundation Other grants Total 2024 Total 2023 |
Unrestricted funds 2024 £ 90,100 - - 155,000 52,564 - 297,664 225,486 |
Restricted funds 2024 £ - - 25,000 - 157,693 - 182,693 50,000 |
Total funds 2024 £ 90,100 - 25,000 155,000 210,257 - 480,357 275,486 |
Total funds 2023 £ 90,100 20,000 50,000 50,000 64,696 690 |
|---|---|---|---|---|
| 275,486 | ||||
6. Investment income
| Investment income Total 2023 |
Unrestricted funds 2024 £ 688 316 |
Total funds 2024 £ 688 316 |
Total funds 2023 £ 316 |
|---|---|---|---|
7. Other incoming resources
| Other incoming resources Total 2023 |
Unrestricted funds 2024 £ 1,799 856 |
Total funds 2024 £ 1,799 856 |
Total funds 2023 £ 856 |
|---|---|---|---|
Page 17
CUMBRIA LAW CENTRE
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
8. Analysis of expenditure on charitable activities
Summary by fund type
----- Start of picture text -----
Unrestricted Restricted
funds funds Total Total
2024 2024 2024 2023
£ £ £ £
Legal Services 240,158 94,837 334,995 367,810
Total 2023 316,083 51,727 367,810
----- End of picture text -----
9. Analysis of expenditure by activities
| Legal Services Total 2023 |
Activities undertaken directly 2024 £ 294,822 337,546 |
Support costs 2024 £ 40,173 30,264 |
Total funds 2024 £ 334,995 367,810 |
Total funds 2023 £ 367,810 |
|---|---|---|---|---|
Analysis of direct costs
| Staff costs Depreciation Premises expenses Travel and subsistence Legal and professional Equipment leasing Training Total 2023 |
Legal Services 2024 £ 273,927 2,013 1,839 2,440 7,329 4,675 2,599 294,822 337,546 |
Total funds 2024 £ 273,927 2,013 1,839 2,440 7,329 4,675 2,599 294,822 337,546 |
Total funds 2023 £ 307,188 4,202 3,374 2,004 13,511 6,405 862 |
|---|---|---|---|
| 337,546 | |||
Page 18
CUMBRIA LAW CENTRE
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
9. Analysis of expenditure by activities (continued)
Analysis of direct costs (continued)
Analysis of support costs
| Premises expenses Telephone Computer costs Printing postage stationery Legal and professional Repairs and maintenances Sundry Insurances Governance costs Total 2024 Total 2023 |
Legal Services 2024 £ 5,622 4,530 5,793 5,248 7,260 5,549 2,192 1,871 2,108 40,173 30,264 |
Total funds 2024 £ 5,622 4,530 5,793 5,248 7,260 5,549 2,192 1,871 2,108 40,173 30,264 |
Total funds 2023 £ 698 5,892 4,423 4,551 441 3,857 2,834 5,742 1,826 |
|---|---|---|---|
| 30,264 | |||
10. Independent examiner's remuneration
The independent examiner's remuneration amounts to an independent examiner fee of £1,550 ( 2023 - £1,300 ).
11. Staff costs
| Wages and salaries Social security costs Contribution to defined contribution pension schemes |
2024 £ 244,009 17,710 12,208 273,927 |
2023 £ 272,370 21,228 13,590 |
|---|---|---|
| 307,188 |
Page 19
CUMBRIA LAW CENTRE
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
11. Staff costs (continued)
The average number of persons employed by the Charity during the year was as follows:
| Charitable staff Support staff |
2024 No. 2 7 9 |
2023 No. 9 2 |
|---|---|---|
| 11 |
No employee received remuneration amounting to more than £60,000 in either year.
12. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2023 - £NIL) .
During the year ended 31 March 2024, no Trustee expenses have been incurred (2023 - £NIL) .
Page 20
CUMBRIA LAW CENTRE
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
13. Tangible fixed assets
| Cost or valuation At 1 April 2023 Additions At 31 March 2024 Depreciation At 1 April 2023 Charge for the year At 31 March 2024 Net book value At 31 March 2024 At 31 March 2023 |
Freehold property £ 81,310 - 81,310 75,079 623 75,702 5,608 6,231 |
Fixtures and fittings £ 44,557 - 44,557 42,928 326 43,254 1,303 1,629 |
Computer equipment £ 16,595 2,314 18,909 15,433 988 16,421 2,488 1,162 |
Property improvement £ 21,020 - 21,020 20,576 75 20,651 369 444 |
Total £ 163,482 2,314 |
|---|---|---|---|---|---|
| 165,796 | |||||
| 154,016 2,012 |
|||||
| 156,028 | |||||
| 9,768 | |||||
| 9,466 |
Page 21
CUMBRIA LAW CENTRE
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
14. Debtors
| Due within one year Other debtors Prepayments and accrued income |
2024 £ 5,994 3,678 9,672 |
2023 £ - 3,257 |
|---|---|---|
| 3,257 |
15. Creditors: Amounts falling due within one year
| Trade creditors Other taxation and social security Other creditors Accruals and deferred income |
2024 £ 8,676 6,496 3,688 1,550 20,410 |
2023 £ 6,893 7,981 5,524 1,300 |
|---|---|---|
| 21,698 |
Page 22
CUMBRIA LAW CENTRE
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
16. Statement of funds
Statement of funds - current year
| Unrestricted funds General funds Restricted funds Restricted funds Total of funds Statement of funds - prior year Unrestricted funds General funds Restricted funds Restricted funds Total of funds |
Balance at 1 April 2023 £ 66,743 17,186 83,929 Balance at 1 April 2022 £ 99,842 18,913 118,755 |
Income £ 334,519 182,693 517,212 Income £ 282,984 50,000 332,984 |
Expenditure £ (240,158) (94,837) (334,995) Expenditure £ (316,083) (51,727) (367,810) |
Balance at 31 March 2024 £ 161,104 |
|---|---|---|---|---|
| 105,042 | ||||
| 266,146 | ||||
| Balance at 31 March 2023 £ 66,743 |
||||
| 17,186 | ||||
| 83,929 |
Page 23
CUMBRIA LAW CENTRE
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
17. Summary of funds
Summary of funds - current year
| General funds Restricted funds Summary of funds - prior year General funds Restricted funds |
Balance at 1 April 2023 £ 66,743 17,186 83,929 Balance at 1 April 2022 £ 99,842 18,913 118,755 |
Income £ 334,519 182,693 517,212 Income £ 282,984 50,000 332,984 |
Expenditure £ (240,158) (94,837) (334,995) Expenditure £ (316,083) (51,727) (367,810) |
Balance at 31 March 2024 £ 161,104 105,042 |
|---|---|---|---|---|
| 266,146 Balance at 31 March 2023 £ 66,743 17,186 |
||||
| 83,929 |
18. Analysis of net assets between funds
Analysis of net assets between funds - current period
| Tangible fixed assets Current assets Creditors due within one year Total |
Unrestricted funds 2024 £ 9,768 171,746 (20,410) 161,104 |
Restricted funds 2024 £ - 105,042 - 105,042 |
Total funds 2024 £ 9,768 276,788 (20,410) 266,146 |
|---|---|---|---|
Page 24
CUMBRIA LAW CENTRE
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
18. Analysis of net assets between funds (continued)
Analysis of net assets between funds - prior period
| Tangible fixed assets Current assets Creditors due within one year Total |
Unrestricted funds 2023 £ 9,466 78,975 (21,698) 66,743 |
Restricted funds 2023 £ - 17,186 - 17,186 |
Total funds 2023 £ 9,466 96,161 (21,698) 83,929 |
|---|---|---|---|
19. Reconciliation of net movement in funds to net cash flow from operating activities
| Net income/expenditure for the period (as per Statement of Financial Activities) Adjustments for: Depreciation charges Dividends, interests and rents from investments Increase in debtors Increase/(decrease) in creditors Fixed asset purchases Net cash provided by/(used in) operating activities 20. Analysis of cash and cash equivalents Cash in hand Cash at bank Total cash and cash equivalents |
2024 £ 182,217 2,012 (688) (6,415) (1,288) (2,314) 173,524 2024 £ 16 267,100 267,116 |
2023 £ (34,826) 4,202 (316) (87) 6,333 - (24,694) 2023 £ 125 92,779 92,904 |
|---|---|---|
Page 25
CUMBRIA LAW CENTRE
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
21. Analysis of changes in net debt
| Cash at bank and in hand | At 1 April 2023 £ 92,904 92,904 |
Cash flows £ 174,212 174,212 |
At 31 March 2024 £ 267,116 267,116 |
|---|---|---|---|
22. Pension commitments
The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £12,208 (2023 - £13,590); an amount of £Nil (2023 £1,836 ) was payable to the fund at the balance sheet date and is included in creditors.
Page 26