Company giStratIon number.. 02524320 Charity registration number: 1004114 CUMBRIA LAW CENTRE STRATEGIC REPORT, TRUSTEES. REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
Cumbria Law Centre Contents Page Reference and Administrative Details Trustees, Report Independent Examiner's Report Statement of Financial Activities (including Income and Expenditure Account) Comparative Statement of Financial Activities (including Income and Expenditure Account) Statement of Financial Position io Statement of Cash Flows li Notes to the Statement of Cash Flows 12 Notes to the Financial Statements 13-21
Cumbria Law Centre Reference and Administrative Details For The Year Ended 31 March 2025 Trustees Mrs Laura Rutherford Mr John Nicol Dr John Masson Mrs Vivienne Lewis Mr John Hunston Ms Michelle Wright Charity Number 1004114 Company Number 02524320 Principal Address 8 Spencer Street Carlisle Cumbri CAI IBG Registered Office 8 Spencer Street Carlisle Cumbri CAI IBG Independent Examiner Jonathan Miller FCA DChA Seavor {South Cumbria) Limited Chartered Accountants 12 The Office, Mardale Road Penrith Cumbria CAII 9EH Bankers Virgin Money 82 English Street Carlisle Cumbria CA3 8HP Page I
Cumbria Law Centre Company No. 02524320 Trustees. Report For The Year Ended 31 March 2025 The trustees present their report and the financial statements for the year ended 31 March 2025. Objectives and Activities Aims and Objectives In setting objertives 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. (li} 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 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: 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. 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. Achievements and Performance Review of activities As ever, running Cumbria Law Centre remains a major challenge but recent years have been made a little bit easier due to the support and understanding of some significant funders. Cumberland Council remains a staunch supporter and funder and, along with Indigo Trust and Access to justice Foundation. we have been able to finish two consecutive years with a small operating surplus and therefore restore to some extent the deficits of previous years. We have also been able to seek funds specifically to help with some essential improvements of the building and most of those were well underway or even finished by the time the financial year ended. They largely amounted to 'first aid. helping us to improve our working environment for staff and clients and also fixing some key problems like failing windows and floor joists. We have also managed some upgrade of tt systems, and this has helped us to prepare for more modern, 'paperless' ways of working which will make us more efficient and more data secure. Our core work has been plentiful. and we have been at capacity in most areas of law throughout most of the year. But this has been a good year of development in terms of the staff team. our premises atbd the general funding picture. Our performance against objectives: Key aim To sustain front line advice and casework services in housing. employment. welfare benefits, debt and any other areas for which funding is available. Main objectives for the year were- Service Delivery l) Succeed in performing new Legal Aid housing contract covering general housingi early help and court duty - Fully achieved - both secured and all LAA audits passed. 2) Develop our funded housing work in complex cases including certificated work continued to develop complex and casework requiring specialist legal defences. 3) Develop delivery of employment law and potential for charging for services - charging review to be carried out by September 2024 - partly achieved we have successfully developed some work in the area of settlement agreements. .CONTINUED Fully achieved we have Page 2
Cumbria Law Centre Trustees. Report (continued) For The Year Ended 31 March 2025 Review of activities- continued 4) Retain our cooperation with Eden Housing Association concentrating on the most specialist advice not achieved this excellent project finally came to an end but has helped thousands of clients to the tune of over £7million in vital financial gains in its lifetirne. 5) Secure funding and being work on upgrades and redecoration of our building - fully achieved work began on building improvements toward the end of the financial year. 6) Continue to improve legal services in housing as well as developing supervisory and management options - fully achieved. 7) Deliver housing law in a more county-wide wayi including connecting people with specialist services in the south of the county - partly achieved we continue to offer services at Barrow court but there is always more to be done in supporting people in that area. 8) Ensure compliance with Lexcel Standards - Fully achieved - an excellent report with no significant non-compliances nd many areas of good practice was attained. Finance/Funding l) Set and achieve a budget that represents a surplus across the years 2024-2027 - Fully achieved so far. 2) Secure Lottery funding for building work and enhanced services or equivalent funding not achieved but this was because other funding became available and was more suitable for this project. 3) Secure continued funding from Cumberland and attempt to regain funding in Westmorland and Furness areas partly achieved our support from Cumbedand Council continues but we have yet to make progress with Westmorland and Furness. 4) Cash position at end of 2025 to be at least £200k including 3 months. operating costs in free reserves - Fully achieved. 5) Bid for'Improving Outcomes. grant - Fully achieved and our bid was successful. 6) Achieve full cost recovery in all possible funding bids Fully achieved evidenced by both our recent recruitment and simultaneous growth of reserves. Governance l) Support Manco's developmenti governance work and recruitment - co-opt two new members to Manco before AGM in Nov 2024 - Fully achieved. 2) Manco strategic review - Partly achieved during this period but further work is set to take place in November 2025. Outreach l) Further develop links and referral activity with local private practice partly achieved our interaction with private practice continues to help clients address multiple and complex issues but a dearth of affordable family and immigration law in the county represent real challenges. 2) Develop initiative to promote the centre to the public and develop membership as a result - Not achieved other objectives took priority and since we have been at capacity in all areas of law, promotion to the public was not seen as urgently required. 3) Continue volunteer programs with students and individuals and explore further links with University of Cumbria Fully achieved the volunteer prograrnme goes from strength to strength with Cutnbria and several other universities regularly bringing students to experience law Centre life. In conclusion The Centre continues to do all it can to excel in its core areas of housing, debt, welfare benefits and employment but also looks outward at how we might be able to better support clients in other developing issues. Meanwhile, we continue to develop our staff with our two newest recruits Gareth and Dan heading towards qualification as a solicitor and becoming a 3-year-qualifed solicitor and legal aid supervisor respectively. Dan has also been on the future leadership development course funded through the Improving Outcomes Through Legal Advice fund (ILTA). This has been an excellent project so far and represents not only a great success in our fundraising but is also a wide-ranging project helping grantees to develop and strengthen their Centres as well as helping hundreds of new clients. It has also been pleasing that we have managed to raise sufficient funds to begin a programme of improvements on our building and our tt infrastructure making the Centre a more pleasant place to be as well as improving our efficiency and readiness for the future. We are also brining in new and energetic people to our Management Committee, and this should stand us in good stead for the year to follow. Our casework services remain free to the client but of extremely high quality. passing Lexcel audits with flying colours as well as the various audits and reviews of the Legal Aid Agency. These represent no small achievement for an organisation of our size and funding. Finally, as ever, we would like to thank those who have contributed to us financially during 2024/25, namely.. Curnberland Council Access to Justice Foundation The Legal Aid Agency Indigo Trust .CONTtNUED Page 3
Cumbria Law Centre Trustees. Report (continued) For The Year Ended 31 March 2025 Review of activities- continued 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 or you can email petemoran@cumbria-law.org.uk to have a copy sent to you. The stories told in there are important nd often very moving. Financial Review 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 comrnittee will be informed at the first available meeting and action shall be decided upon to obviate any risk to service. 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. Principal Funding Sources 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 u5 continue as much of our provision as possible. Principal Risk 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. Material Investments Policy Cumbria Law Centre operates in accordance with the power5 detailed within its Memorandum and Articles of Association. structure. Governance and Management Governing Document 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. Trustee Selection Methods 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. Page 4
Cumbria Law Centre Trustees. Report (continued) For The Year Ended 31 March 2025 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. Organisational Structure 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. Related Parties There are none to declare. 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 contrart and agreernent 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. Statement of Trustees. Responsibilities The trustees {who are also the directors of Cumbria Law Centre for the purposes of company law) are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statement unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the incorne and expenditure, of the charitable company for that period. In preparing the financial statements the trustees are required to- • select suitable accounting policies and then apply them consistently. observe the methods and principles in the Charity SORP- make judgments and accounting estimates that are reasonable and prudent,. and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The trustees are responsible for keeping adequate accounting records which disclose with reasonable accuracy at anytime the financial position of the charitable company and to enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detertion of fraud and other irregularities. Page 5
Cumbria Law Centre Trustees. Report (continued) For The Year Ended 31 March 2025 The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom goveming the preparation and dissemination of financial statements may differ from legislation in other jurisdirtions. The trustees, report was approved by the board of trustees and signed on its behalf by: JENICO Mr John Nicol Trustee 11 November 2025 Page 6
Cumbria Law Centre Independent Examiner's Report to the Trustees of Cumbria Law Centre For The Year Ended 31 March 2025 report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2025. Responsibilities and Basis of Report As the charity trustees of the Company (and also its director5 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 Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respert of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 I'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 Company's gross income exceeded £250.000 your examiner must be a member of a body listed in section 145 of the 2011 Art. I confirm that l am qualified to undertake the examination because I am a member of The Institute of Chartered Accountants in England and Wales. which is one of the listed bodies. have completed my examination. I confirm that no matters have come to my attention in connertion with the examination giving me cause to believe= l. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act. or 2. the accounts do not accord with those records- or 3. 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 4. 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). 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 l 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. Jonathan Miller FCA DChA 11 November 2025 Seavorchartered Chartered Accountants 12 The Office, Mardale Road Penrith Cumbri CAII 9EH Page 7
Cumbria Law Centre Statement of Financial Activities (including Income and Expenditure Account) For The Year Ended 31 March 2025 2025 2024 Unrestrirted Restricted funds funds Total funds Total funds Notes INCOME AND ENDOWMENTS FROM: Donations and legacies Charitable activities= 610 610 189 Legal Services Grants 23,589 344,299 3,371 4,625 23,589 506,293 3,371 4,625 34,179 480,357 688 161,994 Investments other 1,799 376,494 161,994 538,488 517,212 EXPENDThURE ON: Charitable activities: Legal Services {258,925) (161,824) (420,749) (334,995) NET INCOME 117,569 170 117,739 182,217 NET MOVEMENT IN FUNDS 117,569 170 117,739 182,217 RECONCILIATION OF FUNDS: Total funds brought forward 161,104 105,042 266,146 83,929 TOTAL FUNDS CARRIED FORWARD 18 278,673 105,212 383,885 266,146 The notes on pages 12 to 21 form part of these financial statements. Page 8
Cumbria Law Centre Comparative Statement of Financial Activities (including Income and Expenditure Account) For The Year Ended 31 March 2025 2024 Unrestricted Restricted funds funds Total funds Notes INCOME AND ENDOWMENTS FROM: Donations and legacies Charitable activities: Legal Services Grants 189 189 34,179 297,664 688 34,179 480,357 688 182,693 Investments Other 1,799 1,799 334,519 182,693 517,212 EXPENDITURE ON: Charitable activities- Legal Services (240,158) (94,837) (334,9951 NET INCOME/{EXPENDITURE) 94,361 87,856 182,217 NET MOVEMENT IN FUNDS 94,361 87,856 182,217 RECONCILIATION OF FUNDS: Total funds brought forward 66,743 17,186 83,929 TOTAL FUNDS CARRIED FORWARD 18 161,104 105,042 266,146 The notes on pages 12 to 21 form part of these financial statements. Page 9
Cumbria Law Centre Statement of Financial Position As At 31 March 2025 2025 2024 Unrestrirted Restricted funds funds Total funds Total funds Notes FIXED ASSETS Tangible Assets 14 8,579 8,579 9,768 8,579 8,579 9,768 CURRENT ASSETS Debtors Cash at bank and in hand 15 12,302 278,912 12,302 384,124 9,672 267,116 105,212 291,214 105,212 396,426 276,788 Creditors: Amounts Falling Due Within One Year 16 (21,120) {21, 120) (20,410) NET CURRENT ASSETS {LIABILITIES) 270,094 105,212 375,306 256,378 TOTAL ASSETS LESS CURRENT LIABILITIES 278.673 105,212 383,885 266,146 NET ASSETS 278,673 105,212 383,885 266,146 FUNDS OF THE CHARITY Restricted Funds 105,212 278,673 105,042 161,104 Unrestritted Funds TOTAL FUNDS 18 383,885 266,146 For the year ending 31 March 2025 the charitable company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. The members have not required the charitable company to obtain an audit in accordance with settion 476 of the Companies Act 2006. The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime. On behalf of the board JFNICO Mr John Nicol Trustee 11 November 2025 The notes on pages 12 to 21 form part of these financial statements. Page 10
Cumbria Law Centre Statement of Cash Flows For The Year Ended 31 March 2025 2025 2024 Notes Cash flows from operating activities Net cash generated from operations 113,637 175,838 Net cash generated from operating activities 113,637 175,838 Cash flows from investing activities Purchase of tangible assets Interest received (2,314) 688 3,371 Net cash generated from/{used in) investing activities 3,371 (1,626) Increase in cash and cash equivalents Cash and cash equivalents at beginning of year 117,008 267,116 174,212 92,904 Cash and cash equivalents at end of year 384,124 267,116 Page 11
Cumbria Law Centre Notes to the Statement of Cash Flows For The Year Ended 31 March 2025 Reconciliation of income to cash generated from operations 2025 2024 Net income 117,739 182,217 Adjustments for." Interest income (3,371) 1.189 (688) 2,012 Depreciation of tangible assets Movements in working capital.. Increase in trade and other debtors (2.630) 710 {6,415) { 1,288) Increase/{decrease) in trade and other creditors Net cash generated from operations 113,637 175,838 2. Cash and cash equivalents Cash and cash equivalents, as stated in the Statement of Cash Flows. relates to the ft)Ilowing items in the Balance Sheet.. 2025 2024 Cash at bank and in hand 384,124 267,116 Analysis of changes in net funds As at l April Cash flows 2024 Asat31 March 2025 Cash at bank and in hand 267,116 117,008 384,124 Page 12
Cumbria Law Centre Notes to the Financial Statements For The Year Ended 31 March 2025 l. General Information Cumbria Law Centre is a company limited by guardntee. incorpordted in England & Wales, registered number 02524320 and registered charity number 1004114. The registered office is 8 Spencer Street, Carlisle, Cumbria, CAI IBG. 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 I January 2019). Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The charitable company is a Public Benefit Entity as defined by FRS 102. 2.2. 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 restriction5 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. 2.3. Incoming Resources 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 tsx 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. Resources Expended 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 artivity. 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 attivities 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 dirertly undertaking the artivities which further the Charity's objectives, as well as any associated support costs. All expenditure is inclusive of irrecoverable VAT. 2.5. 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 improvements Fixtures & Fittings Computer Equipment IO% reducing balance 170h reducing balance 200h reducing balance 20% straight line Page 13
Cumbria Law Centre Notes to the Financial Statements (continued) For The Year Ended 31 March 2025 2.6. Cash and Cash Equivalents Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts. 2.7. Taxation The Charity is considered to pass the tests set out in Paragraph I Schedule 6 of the Finance Art 2010 andtherefore 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 I l of the Corporation Tax Art 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. 2.8. Provisions and Contingencies abilities are recognised when the 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. abilities 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. 2.9. 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. 2.10. Interest receivable Interest on funds held on deposit 15 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 irbstitution with whom the funds are deposited. Income from Donations and Legacies 2025 2024 Unrestricted Unrestricted funds funds Donations and gifts 610 189 Page 14
Cumbria Law Centre Notes to the Financial Statements (continued) For The Year Ended 31 March 2025 4. Income from Charitable Activities 2025 Unrestricted funds Restricted funds Total funds Legal Services Grants 23,589 344,299 23,589 506,293 161,994 367,888 161,994 529,882 2024 Unrestricted funds Restricted funds Total funds Legal Services Grants 34,179 297,664 34,179 480,357 182,693 331,843 182,693 514,536 Grants, included above. are as follows.. 2025 Unrestricted Restricted funds funds Total funds Cumberland Councill 125,200 125,200 Eden Housing Association The Indigo Trust Access to Justice Foundation 160.100 53,999 5.000 160,100 215,993 5,000 161,994 Other grants 344,299 161,994 506,293 2024 Unrestricted funds Restricted funds Total funds Cumberland Councill Eden Housing Association The Indigo Trust Access to Justice Foundation 90,100 90,100 25,000 155,000 210,257 25,000 155,000 52,564 157,693 Other grants 297,664 182,693 480,357 5. Investment Income 2025 2024 Unrestrirted Unrestricted funds funds Bank interest receivable 3,371 688 Page 15
Cumbria Law Centre Notes to the Financial Statements (continued) For The Year Ended 31 March 2025 6. Other Income 2025 2024 Unrestricted Unrestricted funds funds Other income 4,625 1,799 7. Net Income/(Expenditure) The net income is stated after charging/(crediting): 2025 2024 Depreciation of tangible fixed assets - owned 1,188 2,013 8. Analysis of Expenditure 2025 Activities undertaken Support directly costs (see note 9) (see note 10) Total Legal Services 355,105 65,644 420,749 2024 Activities undertaken Support directly costs (see note 9) (see note 10) Total Legal Services 294,822 40,173 334,995 Page 16
Cumbria Law Centre Notes to the Financial Statements (continued) For The Year Ended 31 March 2025 9. Direct Costs 2025 Legal Services Employee costs.. Wages and salarie5 Employers Nl Contribution to defined contribution pension scheme5 Travel and subsistence expenses Premises expenses.. Premises costs 291,416 22,662 14,571 2,426 4,993 General administration.. Equipment leasing Legal and professional costs Training expenses Depreciation: Depreciation 4,506 10,422 2,921 1,188 355,105 2024 Legal Services Employee costs.. Wages and salaries Employers Nl Contribution to defined contribution pension schemes Travel and subslstence expenses Premises expenses.. Premises costs General administration.. 244,009 17,710 12,208 2,440 1,839 Equipment leasing Legal and professional costs Training expenses Depreciation- Depreciation 4,675 7,329 2,599 2,013 294,822 Page 17
Cumbria Law Centre Notes to the Financial Statements (continued) For The Year Ended 31 March 2025 10. Support Costs 2025 Legal Services Premises expenses.. Light and heat Repairs and maintenance General administration.. Computer software costs Insurance Printing, postage and stationery Telephone Accountancy fees Legal fees Bank charges Sundry expenses 7,424 18,075 4,941 5,610 7,891 6,189 1,875 9,237 59 4,343 65,644 2024 Legal Services Premises expenses.. Light and heat Repairs and maintenance General administration.. 5,622 5,549 Computer software costs Insurance 5,793 1,871 5,248 4,530 2,108 7,260 28 Printing, postage and stationery Telephone Accountancy fees Legal fees Bank charges Sundry expenses 2,164 40,173 I l. Independent Examiner's Remuneration The independent examiner's remuneration amounts to an independent examiner fee of £1,625 {2024 £1,550). Page 18
Cumbria Law Centre Notes to the Financial Statements (continued) For The Year Ended 31 March 2025 12. Staff Costs staff costs were as follows.. 2025 2024 Wages and salaries Social security costs Other pension costs 291,416 22,662 14,571 244,009 17,710 12,208 328,649 273,927 No employees received employee benefits (excluding employer pension costs) for the reporting period of more than £60,000. 13. Average Number of Employees Average number of employees during the year was as follows- 2025 2024 Charitable staff Support staff io 14. Tangible Assets Land & Property Freehold Property improvements Fixtures & Fittings Computer Equbpment Total Cost As at l April 2024 81.310 21.020 44.557 18,909 165,796 As at 31 March 2025 81,310 21.020 44.557 18,909 165,796 Depreciation As at l April 2024 Provided during the period 75,702 561 20,651 63 43,254 261 16,421 304 156,028 1,189 As at 31 March 2025 76.263 20.714 43,515 16,725 157,217 Net Book Value As at 31 March 2025 5.047 306 1.042 2,184 8,579 As at l April 2024 5.608 369 1,303 2,488 9,768 15. Debtors 2025 2024 Due within one year Prepayments and accrued income Other debtors 4.032 8,270 3,678 5,994 12,302 9,672 Page 19
Cumbria Law Centre Notes to the Financial Statements (continued) For The Year Ended 31 March 2025 16. Creditors: Amounts Falling Due Within One Year 2025 2024 Trade creditors 9,260 3.688 6,297 1.875 8,676 3,688 6,496 1,550 other creditors Taxation and social security Accruals and deferred income 21,120 20,410 17. Pension Commitments The charitable company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charitable company in an independently administered fund. During the year the charge to the statement of financial activities in respect of defined contribution schemes was £14,571 {2024- £12,208). At the statement of financial position date contributions of £NIL were due to the fund. 18. Movement in Funds As at l April 2024 A5at31 Expenditure March 2025 Income Unrestricted funds General.. General unrestricted fund Restricted funds 161.104 376.494 {258,925) 278,673 Restricted 105.042 161.994 {161,824) 105,212 Total funds 266.146 538.488 1420,749} 383,885 As at l April 2023 Asat31 Expenditure March 2024 Income Unrestricted funds General.. General unrestricted fund 66.743 334,519 {240, 158) 161,104 Restricted funds Restrirted 17.186 182.693 (94,837) 105,042 Total funds 83.929 517,212 1334,995} 266,146 19. Transactions with Trustees None of the trustees received any remuneration or any other benefits from an employment with the charity or a related entity during the current or previous year. No trustee expenses have been incurred. 20. Related Party Disclosures There have been no related party transactions in the reporting periiKi that require disclosure. Page 20
Cumbria Law Centre Notes to the Financial Statements (continued) For The Year Ended 31 March 2025 21. Company limited by guarantee The company is limited by guarantee and has no share capital. Every member of the company undertakes to contribute to the assets of the company. in the event of a winding up, such an amount as may be required not exceeding £1. Page 21