**COMPANY NUMBER 2786099 CHARITY NUMBER 1024148** ## **THE MARY WARD LEGAL CENTRE** **(A COMPANY LIMITED BY GUARANTEE)** **REPORT AND FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 31 JULY 2021** **MARY WARD LEGAL CENTRE REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021** ## **CONTENTS** |Report from the Chair|2| |---|---| |Reference and Administrative Details|3| |Report of the Board of Trustees|4 - 10| |Statement of Responsibilities of the Board of Trustees|11| |Independent Auditor’s Report to the Board of Trustees|12| |Statement of Financial Activities|15| |Balance Sheet|16| |Statement of Cash Flows|17| |Notes to the Financial Statements|18 - 28| |Detailed Income and Expenditure Account|29 - 30| Page 1 ## **THE MARY WARD LEGAL CENTRE REPORT FROM THE CHAIR** ## **FOR THE YEAR ENDED 31 JULY 2021** ## **REPORT FROM THE CHAIR** The Mary Ward Legal Centre (“the Legal Centre”) helped 2,000 people with their legal issues during 2020-21, continuing to provide specialist advice casework and representation in the areas of debt, housing and welfare benefits, and a pro bono service offering advice on employment, housing, consumer, general civil litigation, and family law. The pandemic has had a significant impact on the Legal Centre and its clients. Demand for advice in some areas fell due to measures introduced to reduce the impact of Covid-19, such as debt recovery and housing possession action being stayed. However, demand for employment and family advice continued to rise dramatically and has started to rise in all the areas the Legal Centre advises on. A surge in need is forecast over the coming months and years as the full impact of Covid-19 hits. To address the impact of Covid-19 the Legal Centre made several successful grant applications, securing funding from a number of funders including The National Lottery Community Fund, Trust for London and the Community Justice Fund. The Legal Centre has been able to maintain access to its specialist advice service and pro bono clinic throughout the pandemic by providing increased access by telephone and email. A grant from the Legal Education Foundation, under their Justice First Fellowship Scheme, has enabled the Legal Centre to employ another trainee solicitor for two years from January 2021. The Legal Centre was successful in securing continuation funding from Henry Smith Charity for a Housing Support Worker to support our most vulnerable clients to sustain their tenancies and help break the cycle of homelessness. To help deal with the forecasted increase in demand for debt advice, the Legal Centre received an additional grant from Debt Free London funded by the Money and Pensions Service to employ four trainee debt advisers, increasing the Legal Centre’s capacity to help more people in need. The hard work and commitment of the Legal Centre staff and pro bono volunteers has resulted in many successful outcomes for clients, including reducing homelessness, increasing incomes, and improving wellbeing. We are grateful to the following funders and donors for 2020-21: London Borough of Camden, Legal Aid Agency, Money and Pensions Service, The National Lottery Community Fund, Community Justice Fund, Trust for London, City Bridge Trust, Legal Education Foundation, London Legal Support Trust, Henry Smith Charity, AB Charitable Trust, Linklaters, Clifford Chance, Weil Gotshal & Manges, and Farrer & Co. Christine Cryne Chair Page 2 **MARY WARD LEGAL CENTRE** ## **REFERENCE AND ADMINISTRATIVE DETAILS** ## **REFERENCE DETAILS** Charity number: 1024148 Company number: 2786099 Address: 10 Great Turnstile, London WC1V 7JU Registered office: 42 Queen Square, London WC1N 3AQ ## **KEY MANAGEMENT PERSONNEL** Key management personnel are defined as members of the Centre’s Senior Management Team and were represented by the following in 2019-20: Warden, CEO Suzanna Jackson Director of Mary Ward Legal Centre Paula Twigg Director of Finance and Resources Juliet Woodford ## **BOARD OF TRUSTEES** A full list of trustees is given on page 8 of these Financial Statements. Ms. Beverley Campbell acted as Clerk to the Board of Trustees throughout the year under review. ## **PROFESSIONAL ADVISERS** FINANCIAL STATEMENTS AUDITOR INTERNAL AUDITOR BANKERS Buzzacott LLP 130 Wood Street London EC2V 6DL Haines Watts 30 Camp Road Farnborough Hants GU14 6EW The Co-operative Bank plc 3rd floor, St Paul's House 10 Warwick Lane London EC4M 7BP Page 3 ## **MARY WARD LEGAL CENTRE REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JULY 2021** ## **REPORT OF THE BOARD OF TRUSTEES** The Board of Trustees (“the Board”) is pleased to present its Annual Report, together with the Financial Statements of Mary Ward Legal Centre (“the Centre”) for the year ended 31[st] July 2021. This report is also prepared to meet the requirements for a Directors’ Report and Financial Statements for Companies Act purposes. ## **NATURE, OBJECTIVES AND STRATEGIES** ## **LEGAL STATUS** The Centre is a company limited by guarantee (number 2786099), is a registered charity (number 1024148) and is governed by its Memorandum of Association dated 25 January 1993. The Financial Statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and 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 (FRS102). ## **THE PURPOSE OF THE CENTRE** The principal object of the Centre is to provide members of the public in conditions of need, hardship or distress with advice, information, assistance and representation dealing with the question of housing, welfare rights, employment, immigration, taxation, insolvency and bankruptcy and other financial and legal problems. The Centre’s portfolio of service activities include: - provision of free specialist legal advice, casework and legal representation services in the following areas of social welfare law: debt, housing and welfare benefits; - work with local communities to address financial inclusion issues and enable local people to manage their money; and - provision of general legal advice to Londoners through evening advice clinics staffed by volunteer solicitors and barristers from central London law firms and chambers. The trustees confirm that they have referred to the Charity Commission’s guidance on public benefit, including the guidance ‘Public benefit: running a charity (PB2)’, when reviewing the Centre’s aims and objectives and in planning future activities. The Centre is a wholly owned subsidiary of Mary Ward Settlement (“the Settlement”). The Settlement is a registered charity (number 223066) and a company limited by guarantee (number 46188). ## **CORE VALUES AND OBJECTIVES** The Centre’s Core Values are: - Putting the needs and aspirations of current and potential clients at the centre of all that it does; Providing consistently high and professional standards across its services; - Promoting access to justice and providing legal advice for the poorest and most disadvantaged; Promoting collaborative work, between the Centre, the Settlement and with partner organisations; Advancing equality, eliminating discrimination, and fostering good relations among all its users; Meeting, or exceeding, the expectations of its key stakeholders, service users and partners; Aiming for excellence in the outcomes and impact of its services; - Providing access to training and development in order that all staff may achieve their potential and be motivated and committed to their work and these Core Values; and - Maintaining an open, honest, accountable and fair approach in all our communications with all its service users, staff and other stakeholders. The Centre’s Strategic Objectives are: - To provide a range of services that delivers its Mission in ways that are relevant now and also look to the future; - To deliver excellent services; - To maintain an organisational structure and culture which realises the Mission and Core Values; Page 4 ## **MARY WARD LEGAL CENTRE REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JULY 2021** ## **CORE VALUES AND OBJECTIVES** (continued) - To maintain good financial health in order to ensure the sustainable delivery of its Mission and Objectives; - To provide an environment and facilities that support the delivery of excellent services; - To plan for and provide equipment and technology that support excellent service delivery and effective management; and - To develop partnerships and alliances with other organisations that will improve and extend its ability to deliver our Mission and Objectives. The Centre is on target to meet both the service and Strategic Objectives. ## **ACHIEVEMENTS AND PERFORMANCE** ## **KEY ACHIEVEMENTS** The Centre’s specific achievements for 2020-21 are outlined below: - Continuing to prevent homelessness, improve people’s housing conditions, combat poverty, help people reduce their debt and maximise their income through providing free specialist casework and representation in housing, debt and welfare benefits; - Continuing to maintain access to our advice services in response to Covid-19 by transforming our services from face-to-face to telephone/email; - Securing additional grant funding and donations to deal with the devastating impact of Covid-19; Helping 2,000 people with their legal issues; - Delivering against contractual funding outputs and outcomes; - Delivering a pro bono advice service to help more people who cannot access help from legal aid to resolve their legal issues; - Securing continuation funding from Henry Smith Charity for a Housing Support Worker to support our most vulnerable clients to sustain their tenancies and help break the cycle of homelessness; Continuing to deliver housing advice in Newham and Southwark; - Over £350,000 of clients’ debts were written off; - Clients receiving help with their welfare benefits matters achieved an average increase of £87 a week in benefits; - Playing an active role in the development of the new Camden Advice Network; - Helping to secure funding from the GLA for a new partnership in Newham to provide advice in food banks and schools; - Upgrading to a new case management system, which has also enabled us to move to electronic case files and reduce our use of paper; and - Passing our Lexcel audit with no non-compliance – Lexcel is the Law Society’s accredited legal practice quality mark. The actual performance against the agreed targets is set out in the table below. The figures for the numbers of new matters opened have been affected by Covid-19. This is primarily due to reduced demand in some areas as a result of measures put in place to protect people during the pandemic, including: a stay on possession cases; payment holidays; suspension of debt recovery and of welfare benefits work-related conditionality and sanctions and face-to-face assessments for ESA and PIP (which often trigger a decision to stop an award). However, performance measuring outcomes for clients exceeded targets. Page 5 ## **MARY WARD LEGAL CENTRE REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JULY 2021** ## **PERFORMANCE INDICATORS** The actual performance against the agreed targets are set out in the table below: |**Key Performance Indicator**|**Target**
**2020-21**|**Achieved**
**2020-21**|**Target**
**2019/20**|**Achieved**
**2019/20**| |---|---|---|---|---| |Meet annual target for matter starts|2,044|1,663|2,500|2,009| |Increase the number of people who
get advice through pro bono clinics|175|187|350|228| |Maintain a high level of client
satisfaction|95%|98%|95%|95%| |Maintain the high % of cases that
have a positive outcome|92%|94%|92%|93%| |A high % of clients who respond to
our survey report an improvement in
health and well-being|88%|95%|88%|91%| ## **FINANCIAL REVIEW** The results for the year are set out on page 15. There has been a surplus for the year of £108,937 (2019-20: surplus £34,085). Income, including the value in kind of pro bono donations of goods or services valued at £107,987 (2019-20: £136,444), rose overall by £107,494 to £1,339,898 (2019-20: £1,232,404). The increase in income reflects donations from several sources in response to the drop in Legal Aid Agency income as a result of the nationwide Covid-19 lockdown, and to a new, temporary contract from 1[st] October 2020 until 31[st] March 2022, with Debt Free London, for the provision of 4 Debt Caseworker traineeships, who are directly employed by the Centre, and whose salaries are included in operational staff costs. Income from the Debt Free London contract, at £255,607, was higher than the previous year (2019-20: £186,658), reflecting the new, temporary Debt Trainee contract, noted above, from October 2020. Other income for specialist advice, which comes primarily from the Legal Aid Agency and the London Borough of Camden totalled £428,235, broadly similar to that of the previous year (2019-20: £436,855), primarily because Legal Aid Agency earnings remained stalled for a second year, following the national lockdown from March 2020 as a result of housing possessions being stayed. Although the stay on possession hearings was removed, the number of possession cases being listed was low, and consequently the volume of legal aid work has been lower. The City Bridge Trust Welfare Benefits project contributed £52,000 (2019-20: £49,550). Other sources of funding included the Henry Smith Trust, the London Legal Support Trust, Trust for London, and the Legal Education Foundation, jointly contributing £123,069. The two main corporate funders; Linklaters and Clifford Chance both continued with their generous funding, donating £80,000 and £20,980 respectively (2019-20: £60,000 and £20,980), and both continued to donate the services of legal trainees, pro bono, as in previous periods, which have been valued at a total of £75,000. Income of £17,586 was received from the government’s Coronavirus Job Retention Scheme to support the salary costs of staff unable to work during the lockdown period. Costs rose by £32,642 to £1,230,961 (2019-20: £1,198,319). Total salary costs were £959,073 (2019-20: £916,270), of which £75,000 (2019-20: £75,000) was the recognised value of donated services from Linklaters LLP and Clifford Chance LLP. This reflects an underlying decrease in both operational and administrative staffing costs arising from reductions in staffing levels following the reduction in value of the Debt Free London contract from April 2020, and a reduction in the specialist advice grants from the London Borough of Camden from April 2021. These reductions are masked by the cost of Debt Team trainees taken on from October 2020, under the Debt Free London temporary contract. Other admin and premises costs rose during 2020-21 compared to 2019-20 as savings had been made during 2019-20 while the premises were closed and working below capacity during the first lockdown. Page 6 ## **MARY WARD LEGAL CENTRE REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JULY 2021** ## **FINANCIAL REVIEW** (continued) Costs have continued to be carefully managed where possible; however growth of services is essential in order to meet the future income targets essential for future sustainability, and the targets of our funders. The demand for the Centre’s services remains high, and the current disparity between income and costs reflect increase in provision, planned over the next few years. ## **TREASURY MANAGEMENT** Treasury management is the management of the Centre’s cash flows, its banking, money market and capital market transactions, the effective control of the risks associated with those activities and the pursuit of optimum performance consistent with those risks. There was a net decrease in the cash held by the Centre of £118,927 to £50,303 (2019-20: £169,230). This reflects a delay in payment of a significant sum owed to the Centre in relation to one of the Centre’s key contracts, included in the debtor balance at the year-end date and settled shortly after. Careful treasury management will remain an essential focus for the Centre’s Senior Management Team until the Centre’s income flows build to a more stable, sustainable level. ## **RESERVES POLICY AND GOING CONCERN** The Centre aims to hold reserves equivalent of 1 to 3 months’ expenditure so that it can continue to provide a service in the event of unexpected financial crisis. Unrestricted reserves at 31[st] July 2021 were £191,644 (201920: £82,707) improved from 2019-20 to 186% of the lower end of target, and 62% of the higher end (2019-20: 83% of lower end of target). This reflects the above-mentioned donations from various sources, without which the Centre is likely to have reported a deficit during a second year impacted by Covid-19. The above-mentioned time lag to Legal Aid Agency income means that it is likely to be several years before the Centre sees a significant improvement in income streams. The expectation is that reserves will remain at the lower end of the target for 2-3 years until the longer term benefits of investment in the larger housing team are seen. The Centre has developed detailed financial projections which include modelling the impact of Covid-19 on its plans for growth and the impact of key risks and uncertainties. This work has supported the Board’s ability to consider the financial impact of the challenges and uncertainties created by the Covid-19 pandemic, and of other key risks. As such it considers that the Centre has adequate resources to continue in operational existence for the foreseeable future and until at least March 2023. For this reason it continues to adopt the going concern basis in preparing the financial statements. ## **FUTURE DEVELOPMENTS** Looking forward the Legal Centre expects to be able to achieve the following: - To continue to adapt its advice provision to ensure safe access during the Covid-19 crisis, including a mix of face-to-face and remote appointments, and advice via video conference; To continue to develop new advice provision in Southwark and Newham; - To expand its housing advice service and recruit additional solicitors; - To take an active role in advice networks, and work in partnership with local advice providers. To continue to seek new sources of income and funding to deliver specialist legal advice services including raising unrestricted income; - To develop an online triage tool to increase the channels of access to its services. ## **FUNDRAISING** The Centre manages its own fundraising activities and aims to achieve best practice in the way in which it communicates with donors and other supporters. It takes care with both the tone of its communications and the accuracy of its data to minimise the pressures on supporters. It applies best practice to protect supporters’ data and never sells or shares data, and ensures that communication preferences can be changed at any time. The Centre undertakes to react to and investigate any complaints regarding its fundraising activities and to learn from them and improve its service. During 2020-21, the Centre received no complaints about its fundraising activities. Page 7 **MARY WARD LEGAL CENTRE REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JULY 2021** ## **STRUCTURE GOVERNANCE AND MANAGEMENT** The following statement is provided to enable readers of the Annual Report and Financial Statements of the Centre to obtain a better understanding of its governance and legal structure. The statement covers the period from 1[st] August 2020 to 31[st] July 2021 and up to the date of the approval of the Annual Report and Financial Statements. The Centre is a registered charity. The Board confirms that it has had due regard for the Charity Commission's guidance on public benefit and that the required statements appear elsewhere in these Financial Statements. ## **THE BOARD** The directors of the Centre, a charitable company, are its trustees for the purpose of charity law. The trustees and officers serving during the year and since the year end were as follows: |Frances Bates|Chair (resigned 5th July 2021)| |---|---| |Mark Bassett|(appointed 8th December 2020; resigned 3rd December 2021)| |Nadine Cartner|| |Graham Collins|| |James Collins|(appointed 17th September 2020)| |Christine Cryne|Chair (appointed 1st May 2021; Chair with effect from 5th July 2021)| |Kim Duong|Treasurer| |John Edwards|(resigned October 2021)| |Beatriz Montoya|| |Raja Nadarajan|(resigned 30th July 2021)| |Paul Nichols|(appointed 7th December 2022)| |Andrew Peck|| |Simone Selzer|(appointed 17th September 2020)| |Sally Todd|(appointed 17th September 2020)| |Margaret Wheeler|Vice Chair (resigned 9th December 2020)| |Emma Wyatt|(reappointed 9th June 2021)| |Company Secretary:|Suzanna Jackson| ## **APPOINTMENTS TO THE BOARD** The Centre operates selection criteria for recruitment of trustees to the Board so as to ensure that their skills and experience reflect the governance and operational needs of the Centre. Prospective trustees are interviewed by the Mary Ward Settlement Governance and Nominations Committee, which includes at least one trustee from the Centre. On selection, references will be taken up as to their suitability to be a trustee prior to a vote by the Centre’s trustees. ## **TRUSTEE INDUCTION AND TRAINING** Each new trustee will have an induction programme designed to meet their needs as a trustee. The content of the programme will vary depending on their level of experience as a charity trustee and their knowledge and understanding of the Centre. The programme will include spending time with each of the key management personnel. They are also encouraged to attend appropriate external training events where these will facilitate the undertaking of their role. Page 8 ## **MARY WARD LEGAL CENTRE REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JULY 2021** ## **ORGANISATION** The Centre has its own Board of up to 14 members who are trustees, nominated by Mary Ward Settlement. For the period under review Mr J Edwards and Mr R Nadarajan were trustees of the Centre’s Board only, until the dates of their respective resignations, and from 9[th] November 2021 Ms E Wyatt, and Mr M Bassett until the date of his resignation, were appointed in their place. All other members were also trustees of the Mary Ward Settlement Board, which provides overall leadership and strategic direction. Sub-committees of the Settlement Board include a Finance Committee, Audit & Risk Committee and a Remuneration Committee which meet as necessary to manage key staffing, finance, fundraising and equal opportunities matters within a clear framework. Day-to-day operational management of the Centre is delegated to the Chief Executive who is supported by a Senior Management Team consisting of the Director of the Centre and the Director of Finance and Resources. The Chief Executive and her Senior Management Team oversee the smooth running of the Centre's staff who are divided into teams in accordance with Centre activities and projects. ## **RELATED PARTIES AND CO-OPERATION WITH OTHER ORGANISATIONS** None of the trustees receive remuneration or other benefit from their work with the Centre, unless they are separately employed by the Centre as a member of staff. For the year under review, no trustee received remuneration in the year for their role as a trustee. There were no expenses and no related party transactions for the year ended 31[st] July 2021 (2019–20: none). Any connection between a trustee or senior manager of the Centre and any organisation associated with the Centre must be disclosed to the Board in the same way as any contractual relationship with a related party. In the current year no such related party transactions were reported. The Centre has built up strong positive relationships over many years with a range of agencies in both the public, private and charity sector. The Centre continues its outreach activities and the delivery of face-to-face legal advice to financially and socially excluded communities within London boroughs. As such, the Centre enjoys good co-operative working relations with an ever-growing number of partners and stakeholders in relation to a range of borough-based projects and activities that meet core charitable objectives. ## **PAY POLICY FOR KEY MANAGEMENT PERSONNEL** The trustees and the Senior Management Team comprise the key management personnel of the Centre in charge of directing and controlling, running and operating the Centre on a day to day basis. The pay of the Senior Management Team is reviewed annually by the Remuneration Committee, which then makes recommendations to the full Board. The employment costs of the Senior Management Team for their work in relation to the Centre are allocated to the Centre. ## **RISK MANAGEMENT** The Board has a risk management strategy which comprises the following: - Regular reviews by the Audit and Risk Committee of the principal risks and uncertainties facing the Centre; - Regular reviews of the policies, systems and procedures in place to mitigate those risks and uncertainties; - An annual request that trustees identify their own view of what the key risks are; - An annual report on risk, by the Audit and Risk Committee, for the Board; and - The implementation of systems and procedures designed to mitigate any potential impact should the risk - actually arise. This work has identified that financial sustainability is the most significant risk to the Centre, given that 70% of its income, excluding value in kind donations, comes from three sources: the Debt Free London debt advice contract funded by the Money and Pensions Service, the Legal Aid Agency (LAA); and Camden Council. Page 9 ## **MARY WARD LEGAL CENTRE REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JULY 2021** ## **RISK MANAGEMENT** (continued) The Centre has expanded its housing advice provision having secured additional legal aid contracts for the London boroughs of Southwark and Newham, which will result in increased income streams as the services are developed. The Debt Free London contract runs to the end of March 2022. The Money and Pensions Service has announced that they intend to extend the contracts to the end of June 2022 with a potential further extension thereafter whilst they review their funding plans. Funding from Camden Council was renewed from April 2020 for a 7 year period, though at considerably lower rates than previously. The Legal Aid Agency contract has been extended to September 2022. The main forms of mitigation to this uncertainty are active contract management, with a special emphasis on maintaining good working relationships with each of those key funders. The other on-going mitigating action is to continue to try to diversify our source of funds. The Centre has been successful in accessing new streams of funding, but these are small in comparison to the existing contracts and tend to be time limited to usually no more than 3 years. The acceptance of the Trainee Contract with Debt Free London from October 2020, initially for 1 year, but since extended to 31[st] March 2022, has been helpful, providing an additional contribution to overheads following the reduction in the main Debt Free London contract. Nevertheless, the recent reduction in two key funding streams meant that some restructuring of teams was necessary during the latter part of 201920, with the associated underlying cost savings impacting the results fully during 2020-21. Other significant risks facing the Centre are increasing demands being placed on already hard-working staff and quality failure in the advice being offered. The first is mitigated by the use of an effective support and supervision system and regular team meetings, alongside a supportive culture and one that encourages open and honest communication. The second is minimised by the operation of an effective quality management system which is regularly externally assessed. Other operational risks are considered to be at a low level and are monitored by management. The Centre’s ultimate holding company, Mary Ward Settlement has, and will continue to be supportive of the operations of the Centre, including confirming that it would assist with the provision of financial support, within its own means, should it prove necessary. Page 10 **MARY WARD LEGAL CENTRE STATEMENT OF RESPONSIBILITIES OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JULY 2021** ## **TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS** The Centre’s trustees (who are also directors of the Centre for the purposes of company law) are responsible for preparing the trustees’ Annual Report and Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the directors to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the charitable company and of the income and expenditure of the Centre for that period. In preparing these Financial Statements, the trustees are required to: select suitable accounting policies and then apply them consistently; - observe the methods and principles in Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the UK and Republic of Ireland (FRS102); - make judgements and estimates that are reasonable and prudent; - state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the Financial Statements; and - prepare the Financial Statements on the going concern basis unless it is inappropriate to assume that the company will continue in operation. The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Centre and enable them to ensure that the Financial Statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Centre and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Centre’s web-site. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. ## **STATEMENT AS TO THE DISCLOSURE TO OUR AUDITORS** In so far as the trustees are aware at the time of approving our trustees’ Annual Report: - there is no relevant information, being information needed by the auditor in connection with preparing their report, of which the Centre’s auditor is unaware; and - the trustees, having made enquiries of fellow directors and the Centre’s auditor that they ought to have individually taken, have each taken all steps that he/she is obliged to take as a director in order to make themselves aware of any relevant audit information and to establish that the Centre’s auditor is aware of that information. By order of the Board of Trustees ## 26 March 2022 Christine Cryne Chair Page 11 **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE MARY WARD LEGAL CENTRE** ## **Opinion** We have audited the financial statements of The Mary Ward Legal Centre (the ‘charitable company’) for the year ended 31 July 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, and the notes to the financial statements, including the principle accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view of the state of the charitable company’s affairs as at 31 July 2021 and of its income and expenditure for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act 2006. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Report and Financial Statements, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Opinion on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the trustees’ report, which is also the directors’ report for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the trustees’ report, which is also the directors’ report for the purposes of company law, has been prepared in accordance with applicable legal requirements. Page 12 **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE MARY WARD LEGAL CENTRE** ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept; - the financial statements are not in agreement with the accounting records or returns; certain disclosures of trustees’ remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or - the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report. ## **Responsibilities of trustees** As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. ## **Auditor’s responsibilities for the audit of financial statements** Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we obtained an understanding of the legal and regulatory frameworks that are applicable to the charitable company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Companies Act 2006 and the Charities Act 2011), those that relate to data protection (General Data Protection Regulation), safeguarding, employment and health and safety; and - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: - making enquiries of management as to their knowledge of actual, suspected and alleged fraud; and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. Page 13 **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE MARY WARD LEGAL CENTRE** - To address the risk of fraud through management bias and override of controls, we: performed analytical procedures to identify any unusual or unexpected relationships; tested journal entries to identify unusual transactions; - assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; - used data analytics to investigate the rationale behind any significant or unusual transactions; - tested authorisation controls on expenditure items, ensuring all expenditure was approved in line with the charitable company’s financial procedures; and - performed substantive testing on grant income to ensure the income recognised complied with the funding agreements. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing financial statement disclosures to underlying supporting documentation; reading the minutes of meetings of those charged with governance; and enquiring of management as to actual and potential litigation and claims. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. ## **Use of this report** This report is made solely to the charity’s trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity’s members those matters that we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, or the opinions we have formed. > Catherine Biscoe (Senior Statutory Auditor) 1 April 2022 For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL Page 14 ## **MARY WARD LEGAL CENTRE STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 JULY 2020** |**Notes**
**INCOME FROM:**
Donations and legacies
3
_Charitable activities:_
Legal Services
4
Interest income
5
Other – CJRS income
6
**TOTAL INCOME**
**EXPENDITURE ON:**
_Raising funds:_
Generating donations
and grants
_Charitable activities:_
Legal services
7
**TOTAL EXPENDITURE**
**NET**
**INCOME/(EXPENDITURE)**
**AND MOVEMENT IN**
**FUNDS**
**Transfers between**
**funds**
**Net movement in funds**
**RECONCILIATION OF**
**FUNDS:**
**FUNDS AT 1st AUGUST**
**2020**
**FUNDS AT 31st JULY**
**2021**|**Unrestricted**
**Funds**
_£_
225,047
202,919
-
17,586
**445,552**
11,510
-
**11,510**
**434,042**
**(325,105)**
**108,937**
**82,707**
**191,644**|**Restricted**
**Funds**
_£_
-
894,346
-
-
**894,346**
-
1,219,451
**1,219,451**
**(325,105)**
**325,105**
**-**
**-**
**-**|**Total Funds**
**2021**
_£_
225,047
1,097,265
-
17,586
**1,339,898**
11,510
1,219,451
**1,230,961**
**108,937**
**-**
**108,937**
**82,707**
**191,644**|_Unrestricted_
_Funds_
_£_
_369,072_
_15,350_
_15_
_26,264_
_410,701_
_22,882_
_-_
_22,882_
_387,819_
_(353,734)_
_34,085_
_48,622_
_82,707_|_Restricted_
_Funds_
_£_
_-_
_821,703_
_-_
_-_
_821,703_
_-_
_1,175,437_
_1,175,437_
_(353,734)_
_353,734_
_-_
_-_
_-_|_Total Funds_
_2020_
_£_
_369,072_
_837,053_
_15_
_26,264_| |---|---|---|---|---|---|---| |||||||_1,232,404_| |||||||_22,882_
_1,175,437_| |||||||_1,198,319_| |||||||_34,085_
_-_
_34,085_
_48,622_| |||||||_82,707_| |||||||| All income and expenditure derive from continuing activities. The charitable company has no recognised gains or losses other than those shown above. The notes on pages 18 to 28 form part of these accounts. Page 15 ## **MARY WARD LEGAL CENTRE BALANCE SHEET** ## **AS AT 31 JULY 2021** |**Notes**
**FIXED ASSETS**
Tangible assets
**CURRENT ASSETS**
Work in progress
16
Debtors
17
Cash at bank and in hand
**LIABILITIES**
Creditors: amounts falling due within one year
18
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
**NET ASSETS**
**THE FUNDS OF THE CHARITY:**
**UNRESTRICTED FUNDS**
General fund
**RESTRICTED FUNDS**
21
**TOTAL FUNDS**|**2021**
**£**
-
178,024
241,479
50,303
469,806
(278,162)
191,644
191,644
**191,644**
191,644
**191,644**
-
**191,644**|_2020_
_£_
_-_| |---|---|---| |||_122,021_
_152,861_
_169,230_| |||_444,112_
_(361,405)_| |||_82,707_| |||_82,707_| |||_82,707_| |||_82,707_| |||_82,707_
_-_| |||_82,707_| The trustees have prepared the Financial Statements in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual Financial Statements required by the Companies Act 2006 and are for circulation to members of the company. The notes on pages 18 to 28 form part of these Financial Statements. Signed Christine Cryne, Chair of the trustees on behalf of the trustees Approved by the trustees on Company registration number: 2786099 Page 16 ## **MARY WARD LEGAL CENTRE STATEMENT OF CASH FLOWS** ## **FOR THE YEAR ENDING 31 JULY 2021** |Notes
Net cash flows from operating activities:
24
Cash flows from investing activities:
Interest income
Cash provided by investing 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|**2021**
**£**
(118,927)
-
-
-
(118,927)
169,230
50,303|_2020_
_£_
_77,660_
_-_
_15_
_15_
_77,675_
_91,555_
_169,230_| |---|---|---| Page 17 ## **MARY WARD LEGAL CENTRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021** ## **1. ACCOUNTING POLICIES** The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the Financial Statements are laid out below: ## a) Basis of preparation The Financial Statements have been prepared for the year to 31[st] July 2021. They have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below, or the notes to these Financial Statements. They have been prepared in accordance with 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 (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006. The Centre meets the definition of a public benefit entity under FRS102. The Financial Statements are presented in sterling and are rounded to the nearest pound. ## b) Preparation of the Financial Statements on a going concern basis The Centre reported a cash outflow of £118,927 (2020: cash inflow of £77,675). The trustees are of the view that the immediate future for the Centre, over the next 12 to 18 months, is secure and, on that basis, the Centre is a going concern. The fixed term nature of the major contracts on which the Centre relies continue to represent a significant risk. This has been mitigated, as far as it is possible to do so, by active contract management with a special emphasis on maintaining good working relationships with each of those key funders. Funding for each of the 3 major income sources has been confirmed until at least 2022, of which one, LB Camden, is secure until March 2028. c) Critical accounting estimates and areas of judgement Preparation of the Financial Statements requires the trustees to make significant judgements and estimates. The item in the Financial Statements where these judgements and estimates have been made consist of the recoverability of work in progress and any consequent provision needed against work-in-progress and related debtors, and estimating the value of donated goods and services. ## d) Income recognition Income is recognised in the period in which the Centre has entitlement to the income and the amount can be measured reliably and it is probable that the income will be received. Income is deferred only when the Centre has to fulfil conditions before becoming entitled to it or where the donor or funder has specified that the income is to be expended in a future accounting period. Legal Aid Agency income is recognised for all work carried out on approved Legal Aid Agency cases at the point in time it is earned, at Legal Aid Agency rates. Where cases become eligible for payment at commercial, Inter Partes, rates, the higher fee is recognised only when the case is complete and ready to be billed. Income comprises donations, bank interest, grants, fee and contractual income and other sundry income. Page 18 ## **MARY WARD LEGAL CENTRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021** ## **1. ACCOUNTING POLICIES** (continued) ## d) Income recognition (continued) Donations and grants are recognised when the Centre has confirmation of both the amount and settlement date. In the event of donations and grants pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation or grant is subject to conditions that require a level of performance before the Centre is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the Centre and it is probable that those conditions will be fulfilled in the reporting period. Fee and contractual income represent the amounts receivable for the services provided to clients, excluding value added tax, under contractual obligations which are performed gradually over time. Incomplete contracts at the balance sheet date are accounted for by reference to the fair value of the work performed and amounts due but not received at the balance sheet date are described in the Financial Statements as contractual income debtors. Other sundry income is recognised to the extent that it is probable that the economic benefits will flow to the Centre and the revenue can be measured reliably. It is measured at fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. ## e) Donated services Donated professional services are recognised as income when the Centre has control over them, any conditions associated with the donated service having been met, the receipt of economic benefit from the use by the Centre of the item is probable and that the economic benefit can be measured reliably. In accordance with the Charities SORP (FRS102), the time of general volunteers is not recognised. On receipt, donated professional services are recognised on the basis of the value of the gift to the Centre which is the amount that the Centre would have been willing to pay to obtain those services on the open market; a corresponding amount is then recognised in expenditure in the same period as the receipt. ## f) Interest receivable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Centre; this is normally upon notification of the interest paid or payable by the Bank. ## g) Fund accounting Unrestricted funds are available to spend on activities that further any of the purposes of the Centre. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the Centre’s work. ## h) Expenditure recognition Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Centre to make a payment 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. All expenditure is accounted for on an accruals basis and is classified as follows: Expenditure on raising funds includes all expenditure associated with raising funds for the Centre. Page 19 ## **MARY WARD LEGAL CENTRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021** ## **1. ACCOUNTING POLICIES** (continued) h) Expenditure recognition (continued) Expenditure comprises the costs of charitable activities in respect to the Centre’s primary charitable purposes as described in the trustees’ report. All expenditure is stated inclusive of irrecoverable VAT. ## i) Allocation of support costs Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the Centre it is necessary to provide support in the form of personnel development, financial procedures, provision of office services and equipment and a suitable working environment. Governance costs comprise the costs involving the public accountability of the Centre (including audit costs) and costs in respect to its compliance with regulation and good practice. Support costs and governance costs are apportioned as detailed in note 8. ## j) Leased assets Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the Statement of Financial Activities as incurred. The Centre has a 4 and a half year operating lease, until July 2022, with Meraki Holdings on the property it occupies at 10 Great Turnstile. The amount payable by the Centre under the lease (exclusive of rates and service charge) is £66,840 per annum. ## k) Tangible fixed assets Individual fixed assets costing more than £1,000 or more are capitalised at cost and are depreciated over their useful economic lives on a straight line basis as follows: Furniture, fixtures and office equipment 20% ## l) Work in progress Work in progress is the estimated value of legal work completed that could have been invoiced at 31[st] July of the year in question. The value is calculated with reference to the time recorded by case workers which is expected to result in billable work, and is valued at standard Legal Aid Agency rates. ## m) Debtors Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material. ## n) Cash at bank and in hand Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short term deposits. Cash placed on deposit for more than one year is disclosed as a fixed asset investment. Page 20 ## **MARY WARD LEGAL CENTRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021** ## **1. ACCOUNTING POLICIES** (continued) ## o) Creditors Creditors 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. Creditors are recognised at the amount the Centre anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material. ## p) Pension contributions Contributions in respect of the Centre’s defined contribution pension scheme are charged to the Statement of Financial Activities when they are payable to the scheme. The Centre has no liability beyond making its contributions and paying across the deductions for the employees’ contributions. The scheme is operated by the National Employers Savings Trust (NEST). Staff make a contribution of 2% and the Centre 6%. ## **2. LEGAL STATUS OF THE CENTRE** The Centre is a company limited by guarantee and has no share capital. In the event of the Centre being wound up, the liability in respect of the guarantee is limited to £1 per member of the Centre. ## **3. INCOME FROM DONATIONS AND LEGACIES** |Donations:
Gifts
Long term intercompany loan forgiven by Mary Ward Settlement
Donated services|**2021**
**£**
117,060
-
107,987
225,047|_2020_
_£_
_108,871_
_123,757_
_136,444_| |---|---|---| |||_369,072_| Gifts include an annual payment of £80,000 from Linklaters LLP, £20,980 from Clifford Chance LLP and £5,000 from Weill Gotschel & Manges. Donated services comprise the estimated value of solicitors attending advice clinics and seconded trainee solicitors by Linklaters LLP and Clifford Chance LLP. The equivalent expenditure of the donated services is included in operational staff costs and professional fees. The Centre also benefits from the involvement and support of a number of other volunteers. In accordance with FRS102 and the Charities SORP (FRS102), the economic contribution of general volunteers is not recognised in the Financial Statements. Page 21 ## **MARY WARD LEGAL CENTRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020** ## **4. INCOME FROM CHARITABLE ACTIVITIES** |**NCOME FROM CHARITABLE ACTIVITIES**||| |---|---|---| |Legal services:
Revenue grants
Advice and casework|**2021**
**£**
325,989
771,276
1,097,265|_2020_
_£_
_117,973_
_719,080_| |||_837,053_| ## **5. INTEREST AND INVESTMENT INCOME** All of the Centre's interest and investment income of £nil (2020: £15) comes from money held in interest bearing deposit accounts. ## **6. OTHER INCOME** Income of £17,586 (2019-20: £26,264) was received from the government’s Coronavirus Job Retention Scheme to support the salaries of staff unable to work during the lockdown period. ## **7. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES** |Salaries (including value in kind services)
Casework costs
Insurance
Other direct costs
Support costs (note 9)|**2021**
**£**
724,715
54,986
3,221
14,599
421,930
1,219,451|_2020_
_£_
_676,212_
_69,288_
_2,990_
_20,222_
_406,725_| |---|---|---| |||_1,175,437_| ## **8. SUMMARY ANALYSIS OF EXPENDITURE AND RELATED INCOME FOR CHARITABLE ACTIVITIES** |Costs
Advice and casework contracts
Revenue grants|**2021**
**£**
(1,219,451)
771,276
325,989
(122,186)|_2020_
£
_(1,175,437)_
_719,080_
_117,973_| |---|---|---| |||_(338,384)_| Page 22 ## **MARY WARD LEGAL CENTRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021** ## **9. ANALYSIS OF SUPPORT COSTS (incl. GOVERNANCE COSTS)** |**2021**
**£**
Staff costs
222,848
Recruitment costs
-
Computer costs
55,470
Audit costs
10,600
Premises
119,566
Other support costs
13,446
421,930
**10.**
**NET INCOME/(EXPENDITURE) FOR THE YEAR**
**2021**
This is stated after charging:
**£**
Auditor’s remuneration:
Financial statements audit
5,600
SAR audit
5,500
Operating lease rentals
66,840
**11.**
**ANALYSIS OF STAFF COSTS, TRUSTEE EXPENSES AND THE COST OF KEY**
**MANAGEMENT PERSONNEL**
**2021**
**£**
Wages and salaries (including £75,000 value in kind (2020: £75,000))
823,941
Social security costs
Other pension costs
77,452
57,680
959,073|||||_2020_
_£_
_229,736_
_1,000_
_29,875_
_11,300_
_110,243_
_24,571_| |---|---|---|---|---|---| ||||||_406,725_| |||**2021**
**£**
5,600
5,500
66,840|||_2020_
_£_
_5,800_
_5,500_
_66,840_
_2020_
_£_
_799,796_
_68,388_
_48,086_
_916,270_| ||||||| ||||||| No employees’ remuneration was above £60,000 in the year (2020: none). The Centre’s trustees were not paid (2020: £nil) nor did they receive any other benefits from employment, nor were they reimbursed any expenses (2020: £nil) except where they were employed separately by the Centre’s parent company, Mary Ward Settlement, or by the Settlement’s operating entity, the Mary Ward Centre. No Centre trustee received payment for professional or other services supplied to the Centre (2020: £nil). The key management personnel of the Centre comprise the trustees and the Director of the Legal Centre. It also comprises members of the Senior Management Team of Mary Ward Settlement who provided services to the Legal Centre as part of their role for the Mary Ward Settlement. These members of staff did not receive any additional remuneration for their work on behalf of the Legal Centre, however, a portion of their costs were recharged by the Mary Ward Settlement. Total recharged costs from the Mary Ward Settlement for recharged staff was £155,403 (2020: £154,964), of which £10,477 (2020: £10,477) related to the Senior Management Team of Mary Ward Settlement. Total key management personnel remuneration for the year was £68,030 (2020: £68,030). Page 23 ## **MARY WARD LEGAL CENTRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021** ## **12. STAFF NUMBERS** The average number of staff employed each month was 27 (2020: 24). The average number of staff, in both number and full-time equivalent, employed each month was as follows: |Operational staff
Support staff|**2021**
**No.**
**fte**
_23_
_19_
_4_
_4_
_27_
_23_|_2020_
_No._
_fte_
_20_
_15_
_4_
_3_
_24_
_18_| |---|---|---| ## **13. ULTIMATE PARENT UNDERTAKING AND RELATED PARTY TRANSACTIONS** Mary Ward Settlement, a registered charity (Charity Registration Number 223066) and company (Company Registration Number 46188) is the ultimate parent undertaking of the Centre. The Financial Statements do not include disclosure of transactions between the Centre and the Settlement. As a 100% controlled subsidiary undertaking, the Centre is exempt from the requirement to disclose such transactions under Financial Reporting Standard 102 Section 33. There were no other related party transactions in the year (2020: none). ## **14. GOVERNMENT GRANTS** The Centre receives income from both the Legal Aid Agency and the London Borough of Camden. However all of the funding is contractual and relates directly to the provision of services. ## **15. CORPORATION TAXATION** The Centre is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. ## **16. WORK IN PROGRESS** Work in progress is the value of legal casework not assessed by the Legal Aid Agency. |**17. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Trade debtors
Prepayments and accrued income|**2021**
**£**
155,196
86,283
241,479|_2020_
_£_
_89,806_
_63,055_
_152,861_| |---|---|---| Page 24 ## **MARY WARD LEGAL CENTRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021** ## **18. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** |Trade creditors
Taxes and social security costs
Accruals and deferred income
Annual leave accrual
Amounts owed to group companies|**2021**
**£**
-
21,124
93,240
6,337
157,461
278,162|_2020_
_£_
_2,651_
_24,725_
_191,122_
_14,319_
_128,588_
_361,405_| |---|---|---| ## **19. DEFERRED INCOME** Deferred income is made up of income, received in advance, for services to be delivered after the 31[st] July 2021. |Opening balance as at 1st August
Amount released to income earned from charitable activities
Amount deferred in year
Balance as at 31st July|**2021**
**£**
159,864
(159,864)
49,368
49,368|_2020_
_£_
_82,312_
_(82,312)_
_159,864_
_159,864_| |---|---|---| ## **20. LEASE OBLIGATIONS** At 31st July the Centre had minimum lease payments under non-cancellable operating leases as follows: |**Land and buildings**
Not later than one year
Later than one year|**2021**
**£**
_66,840_
_-_
_66,840_|_2020_
_£_
_66,840_
_66,840_
_133,680_| |---|---|---| Page 25 ## **MARY WARD LEGAL CENTRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021** ## **21. ANALYSIS OF CHARITABLE FUNDS** |**Restricted funds:**
Legal Aid Agency
Money
and
Pensions
Service
–
Debt
Free
London
London
Borough
of
Camden Advice Services
Housing Possession Court
Duty Scheme (HPCDS)
Cardinal Hume Centre
City Bridge Trust
The Henry Smith Charity
Legal Education
Foundation
Trust for London
London Legal Support
Trust
**Total restricted funds**
**Unrestricted funds:**
General fund
**Total unrestricted funds**
**Total funds**|**Balance**
**1 August**
**2020**
**£**
-
-
-
-
-
-
-
-
-
-
82,707
82,707
82,707|**Movement in resources**
**Income**
**Expenditure**
**£**
**£**
178,312
(243,131)
255,607
(348,523)
249,923
(340,772)
-
-
35,434
(48,315)
52,000
(70,903)
18,544
(25,286)
27,030
(36,856)
44,112
(60,147)
33,384
(45,518)
894,346
(1,219,451)
445,552
(11,510)
445,552
(11,510)
1,339,898
(1,230,961)|**Transfers**
**£**
64,819
92,916
90,849
-
12,881
18,903
6,742
9,826
16,035
12,134
325,105
(325,105)
(325,105)
-|**Balance**
**31 July**
**2021**
**£**
-
-
-
-
-
-
-
-
-
-| |---|---|---|---|---| |||||-| |||||191,664| |||||191,644| |||||191,644| Where income has been received specifically for services provided by the Centre it is shown as restricted income. Expenditure has been fully allocated to those services provided by the Centre based on operational headcount. Unrestricted income and/or reserves are shown as transfers to the Centre’s activities where allocated expenditure exceeds the sources of restricted income for each service. Name of Fund Description, nature and purpose of fund General Fund Funds that can be used for any purpose consistent with the achievement of the Centre’s charitable objectives. Legal Aid Agency Money and Advice Service – Debt Free London London Borough of Camden Advice Services City Bridge Trust Funding for housing advice and representation (where applicable) for people eligible for legal aid Funding to provide face-to-face debt advice Funding to provide specialist advice in the areas of debt, housing and welfare benefits, to people who live, work, or study in Camden. Funding for a welfare benefits caseworker to provide specialist welfare benefits advice pan-London and supporting volunteers to help provide disability benefits form filling. Page 26 ## **MARY WARD LEGAL CENTRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021** ## **21. ANALYSIS OF CHARITABLE FUNDS (continued)** Name of Fund Description, nature and purpose of fund The Henry Smith Charity Funding for a Housing Support Worker to work with vulnerable clients to provide a holistic service to the Centre's housing clients to help sustain tenancies and break the cycle of homelessness. The Trust for London Funding for a specialist welfare benefits caseworker. Legal Education Foundation Funding for a trainee solicitor at the Centre as part of the LEF's Justice First Fellowship. St Andrews Holborn Funding towards the costs of providing specialist welfare rights advice to those living within St Andrew Holborn’s area of benefit. London Legal Support Funding under their Centres of Excellence scheme and funding for a legal aid Trust billing co-ordinator. |**_Restricted funds:_**
_Legal Aid Agency_
_Money_
_and_
_Pensions_
_Service_
_–_
_Debt_
_Free_
_London_
_London_
_Borough_
_of_
_Camden Advice Services_
_Housing Possession Court_
_Duty Scheme (HPCDS)_
_Cardinal Hume Centre_
_Comic Relief_
_City Bridge Trust_
_RBS Financial Capability_
_The Henry Smith Charity_
_Legal Education_
_Foundation_
_St Andrews Holborn_
_Trust for London_
_Trust for London (Covid)_
**_Total restricted funds_**
**_Unrestricted funds:_**
_General fund_
**_Total unrestricted funds_**
**_Total funds_**|**Balance**
**1 August**
**2019**
**as restated**
**£**
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_48,622_
_48,622_
_48,622_|**Movement in resources**
**Income**
**Expenditure**
**£**
**£**
_192,165_
_(274,774)_
_186,658_
_(266,898)_
_244,690_
_(349,878)_
_4,300_
_(6,148)_
_8,031_
_(11,484)_
_16,776_
_(23,988)_
_49,550_
_(71,850)_
_6,904_
_(9,872)_
_26,017_
_(37,201)_
_21,068_
_(30,125)_
_9,656_
_(13,807)_
_43,888_
_(62,754)_
_12,000_
_(16,658)_
_821,703_
_(1,175,437)_
_410,701_
_(22,882)_
_410,701_
_(22,882)_
_1,232,404_
_(1,198,319)_|**Transfers**
**£**
_82,609_
_80,240_
_105,188_
_1,848_
_3,453_
_7,212_
_22,300_
_2,968_
_11,184_
_9,057_
_4,151_
_18,866_
_4,658_
_353,734_
_(353,734)_
_(353,734)_
_-_|**Balance**
**31 July**
**2020**
**£**
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_| |---|---|---|---|---| |||||_-_| |||||_82,707_| |||||_82,707_| |||||_82,707_| Page 27 ## **MARY WARD LEGAL CENTRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021** ## **22. ANALYSIS OF NET ASSETS BETWEEN FUNDS** |**22.**|**ANALYSIS OF NET ASSETS BETWEEN FUNDS**||||||| |---|---|---|---|---|---|---|---| |||**Fixed**||**Current**|||**2021**| |||**assets**||**assets**||**Liabilities**|**Total**| ||||**£**||**£**|**£**|**£**| ||General fund|-||469,806||(278,162)|191,644| ||Restricted funds|-||-|||| |||-||469,806||(278,162)|191,644| |||_Fixed_||_Current_|||_2020_| |||_assets_||_assets_||_Liabilities_|_Total_| |||_£_||_£_||_£_|_£_| ||_General fund_|_-_||_444,112_||_(351,405)_|_82,707_| ||_Restricted funds_|_-_||_-_||_-_|_-_| |||||_444,112_||_(351,405)_|_82,707_| |**23.**|**POST BALANCE SHEET EVENTS**||||||| ||There have been no events that will have a material impact on||the|Financial Statements.|||| |**24.**|**RECONCILIATION OF NET MOVEMENT IN**|**FUNDS**|**TO**|**NET FLOW**||**FROM OPERATING**|| ||**ACTIVITIES**||||||| |||||||**2021**|_2020_| |||||||**£**|_£_| ||Net movement in funds|||||108,937|_34,085_| ||(Increase) in work in progress|||||(56,003)|_(13,486)_| ||(Increase) / decrease in debtors|||||(88,617)|_37,606_| ||(Decrease) / increase in creditors|||||(83,244)|_19,470_| ||Interest earned|||||-|_(15)_| ||Net cash (used in) / provided by operating activities|||||(118,927)|_77,660_| ## **Analysis of net debt** |**Analysis of net debt**||||| |---|---|---|---|---| |**Total cash and cash equivalents:** Cash at bank and in hand|At 1
August
2020
£
169,230|Cash
flows
£
(118,927)|Other
non-cash
changes
£|**At 31**
**July 2021**
**£**
50,303| ||||-|| ## **25. CLIENT MONIES** At 31[st] July 2021 the Centre held money on behalf of clients in "Client" bank accounts of £147,097 (2020: £66,986). Page 28 ## **MARY WARD LEGAL CENTRE DETAILED INCOME AND EXPENDITURE ACCOUNT** ## **FOR THE YEAR ENDED 31 JULY 2021** ## **This page does not form part of the audited Financial Statements** |**INCOME**
**Grants**
Farrer & Co Charitable
Trust
The Henry Smith Charity
London Legal Support Trust
Legal Education Foundation
– fellowship funding
Trust for London
Trust for London (Covid)
Community Justice Fund
London Funders Wave 3
Big Lottery
Access to Justice
Foundation
AB Charitable Trust
**Advice, casework and net**
**disbursements**
Legal Aid Agency – NfP
grant
Legal Aid Agency – HPCDS
at Clerkenwell CC
Debt Free London project
LB Camden Specialist
Advice Services
LB Camden Disability
project
Comic Relief financial
capability project
City Bridge welfare benefits
project
St Andrew Holborn
Cardinal Hume Centre
RBS Financial Capability
Other advice, casework &
net disbursements
**Other**
General donations and
fundraising
Linklaters donations
Clifford Chance donations
Weil Gotshal & Manges
Value in kind – Linklaters
Value in kind – Clifford
Chance
Clients' contributions
Interest on deposit account
CJRS furlough rebate
**TOTAL INCOME**
**TOTAL EXPENDITURE**
**SURPLUS (DEFICIT)**|**Unrestricted**
**Funds**
**£**
-
-
-
-
-
76,750
44,500
59,669
7,000
15,000
202,919
-
-
-
-
-
-
-
-
-
-
-|**Restricted**
**Funds**
**£**
-
18,544
33,383
27,030
44,112
-
-
-
-
-
123,070
43,088
-
255,607
190,863
59,060
-
52,000
-
35,434
-
135,224|**Total Funds**
**2021**
**£**
-
18,544
33,384
27,030
44,112
76,750
44,500
59,669
7,000
15,000
325,989
43,088
-
255,607
190,863
59,060
-
52,000
-
35,434
-
135,224|**_Unrestricted_**
**_Funds_**
**_as restated_**
**_£_**
_5,000_
_-_
_10,000_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_15,000_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_|**_Restricted_**
**_Funds_**
**_as restated_**
**_£_**
_-_
_26,017_
_-_
_21,068_
_43,888_
_12,000_
_-_
_-_
_-_
_-_
_-_
_102,973_
_50,673_
_4,300_
_186,658_
_161,100_
_83,590_
_16,776_
_49,550_
_9,656_
_8,031_
_6,904_
_141,842_|**_Total Funds_**
**_2020_**
**_as restated_**
**_£_**
_5,000_
_26,017_
_10,000_
_21,068_
_43,888_
_12,000_
_-_
_-_
_-_
_-_
_-_| |---|---|---|---|---|---|---| |||||||_117,973_| |||||||_50,673_
_4,300_
_186,658_
_161,100_
_83,590_
_16,776_
_49,550_
_9,656_
_8,031_
_6,904_
_141,842_| ||-
11,080
80,000
20,980
5,000
57,987
50,000
-
-
17,586
242,633
**445,552**
**(11,510)**
**434,042**|771,276
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
**894,346**
**(1,219,451)**
**(325,105)**|771,276
11,080
80,000
20,980
5,000
57,987
50,000
-
-
17,586
242,633
**1,339,898**
**(1,230,961)**
**108,937**|_-_
_141,228_
_60,000_
_30,890_
_-_
_86,444_
_50,000_
_420_
_15_
_26,264_
_410,351_
**_410,351_**
**(22,882)**
**399,469**|_719,080_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
**_822,053_**
**(1,175,437)**
**(365,384)**|_719,080_| |||||||_141,228_
_60,000_
_30,890_
_-_
_86,444_
_50,000_
_420_
_15_
_26,264_| |||||||_422,351_| |||||||**_1,232,404_**
**(1,198,319)**| |||||||**34,085**| Page 29 ## **MARY WARD LEGAL CENTRE DETAILED INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JULY 2021** ## **This page does not form part of the audited Financial Statements** |**EXPENDITURE**
**ADMINISTRATION**
Salaries and related
contributions
Recruitment advertising +
other costs
Postage and carriage
Telephone and fax
Printing and stationery
Photocopying
Audit and accountancy
Legal & professional fees
Travelling
General office expenses
(incl. H&S)
General computer expenses
PR literature/brochures &
fundraising
Bank charges
**ESTABLISHMENT**
Rent
Service charge
General + water rates
Electricity + gas
Cleaning
Premises maintenance
**OPERATIONAL**
Salaries and related
contributions
Irrecoverable disbursements
Client compensation claims
Case cost drafting fees
File storage
Solicitors practising
certificates
Insurance
Books + subscriptions
Volunteers' expenses
Refreshments / other staff
expenses
Professional Fees
Training costs
Project related costs
**TOTAL EXPENDITURE**|**Unrestricted**
**Restricted**
**Total Funds**
**_Unrestricted_**
**_Restricted_**
**_Total Funds_**
**Funds**
**Funds**
**2021**
**_Funds_**
**_Funds_**
**_2020_**
**£**
**£**
**£**
**_£_**
**_£_**
**_£_**
-
222,848
222,848
_-_
_240,088_
_240,088_
-
-
-
_-_
_1,000_
_1,000_
-
4,817
4,817
_-_
_5,902_
_5,902_
-
5,067
5,067
_-_
_5,971_
_5,971_
-
1,150
1,150
_-_
_3,435_
_3,435_
-
1,046
1,046
_-_
_1,782_
_1,782_
-
10,600
10,600
_-_
_11,300_
_11,300_
-
33,069
33,069
_11,372_
_-_
_11,372_
-
72
72
_-_
_472_
_472_
-
386
386
_-_
_348_
_348_
-
55,471
55,471
_-_
_29,875_
_29,875_
-
325
325
_-_
_525_
_525_
-
584
584
_-_
_327_
_327_| |---|---| ||-
335,435
335,435
_11,372_
_300,327_
_311,629_| ||-
66,515
66,515
_-_
_65,616_
_65,616_
-
13,670
13,670
_-_
_15,340_
_15,340_
-
12,040
12.040
_-_
_12,290_
_12,290_
-
8,348
8,348
_-_
_8,377_
_8,377_
-
8,148
8,148
_-_
_5,015_
_5,015_
-
10,845
10,845
_-_
_3,605_
_3,605_| ||-
119,566
119,566
_-_
_110,243_
_110,243_| ||11,510
724,715
736,225
_11,510_
_664,702_
_676,212_
-
2,685
2,685
_-_
_182_
_182_
-
-
-
_-_
_4,625_
_4,625_
-
7,874
7,874
_-_
_2,782_
_2,782_
-
8,405
8,405
_-_
_8,228_
_8,228_
-
2,952
2,952
_-_
_2,589_
_2,589_
-
3,221
3,221
_-_
_9,969_
_9,969_
-
3,523
3,523
_-_
_3,964_
_3,964_
-
38
38
_-_
_387_
_387_
-
130
130
_-_
_687_
_687_
_-_
6,313
6,313
_-_
_61,699_
_61,699_
_-_
4,594
4,594
_5,054_
_5,054_
-
-
_-_| ||11,510
764,450
775,960
_11,510_
_764,867_
_776,377_| ||| ||**11,510**
**1,219,451**
**1,230,961**
**_22,882_**
**_1,175,437_**
**_1,198,319_**| Page 30