## **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 2023** 



**MARY WARD LEGAL CENTRE REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023** 

## **CONTENTS** 

|Report from the Chair|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|
||Members|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 2023** 

## **REPORT FROM THE CHAIR** 

-23, 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. 

address this increased demand the Centre was able to secure some additional funding to provide housing and welfare benefits advice to residents in Camden, Newham and Enfield. 

The need for help with Welfare Benefits appeals continues to grow and, as a result, the Centre secured additional funding from the Access to Justice Foundation to provide specialist welfare benefits advice and representation to people in need across London. 

The Centre is seeing more and more people in need of help with dealing with their debts. Many clients feel utterly desperate as they struggle financially to meet their everyday needs. Funding from the Money and Pensions Service through the Debt Free Advice partnership enabled the Centre to provide much-needed debt advice to Londoners struggling with their debts, including successful applications for Debt Relief Orders, writing off the debts and removing huge pressures on people. 

Through a partnership with other advice providers and food banks in Newham the Centre is offering specialist advice to Newham food bank users with funding from the GLA. 

The Centre is pleased to be training three trainee solicitors, which will increase its capacity to help more people whilst enabling a much-needed growth in future social welfare lawyers. We would like to thank the Justice First Fellowship scheme and Linklaters for their funding which has enabled us to provide this opportunity. 

The hard work and commitment of the Centre staff and pro bono volunteers has resulted in many successful outcomes for clients, including reducing homelessness, increasing incomes, reducing debts, improving housing conditions and wellbeing. 

We are grateful to the following funders and donors for 2022-23 who have enabled us to continue our work in changing lives: London Borough of Camden, Legal Aid Agency, Money and Pensions Service, Trust for London, Access to Justice Foundation, Legal Education Foundation, London Legal Support Trust, Henry Smith Charity, GLA, Linklaters, Clifford Chance, Farrer & Co, Matrix Chambers and Bishop & Sewell LLP. 

Frances Bates 

Chair 

Page 2 



**MARY WARD LEGAL CENTRE** 

## **REFERENCE AND ADMINISTRATIVE DETAILS** 

## **REFERENCE DETAILS** 

Charity number: 1024148 Company number: 2786099 Address and Registered Office: Queensway House, 275-285 High St, Stratford, London E15 2TF 

## **KEY MANAGEMENT PERSONNEL** 

represented by the following in 2022-23: 

Warden, CEO Suzanna Jackson (until 20[th] March 2023) Therese Reinheimer-Jones (from 20[th] March 2023) 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 

Buzzacott LLP 130 Wood Street London EC2V 6DL 

INTERNAL AUDITOR 

BANKERS 

Validera 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 2023** 

## **REPORT OF THE BOARD OF TRUSTEES** 

nnual Report, together with the Financial Statements of Mary Ward Legal Centre for the year ended 31[st] July 2023. This report is also prepared to meet inancial 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. 

- 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 pro bono 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 

planning future activities. 

The Centre is a wholly owned subsidiary of Mary Ward registered charity (number 223066) and a company limited by guarantee (number 46188). 

## **CORE VALUES AND OBJECTIVES** 

alues 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. 

## bjectives 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 2023** 

## **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** 

-23 are outlined below: 

- reduce their debt and maximise their income through providing free specialist casework and representation in housing, debt and welfare benefits; 

- Securing additional grant funding and donations to deal with the impact of the cost of living crisis; 

- 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 funding from the Access to Justice Foundation to increase our capacity to provide specialist welfare benefits advice pan-London; 

- Securing funding from the London Borough of Camden for a generalist adviser to provide holistic support and increase our outreach in the borough; 

- Continuing to deliver housing advice in Newham and securing additional funding to increase access to specialist housing advice in Newham and Enfield; 

- Supporting two members of staff to train as an apprentice solicitor; 

- Clients receiving help with their welfare benefits appeals achieved an average increase of £87 a week in benefits; 

- Playing an active role in the development of the new Camden Advice Network; 

- Working in partnership with other community organisations and food banks in Newham to provide specialist advice to food bank users. 

Page 5 



**MARY WARD LEGAL CENTRE REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JULY 2023** 

## PERFORMANCE INDICATORS 

The actual performance against the agreed targets are set out in the table below: 

|Key Performance Indicator|Target<br>2022-23|Achieved<br>2022-23|Target<br>2021-22|Achieved<br>2021-22||
|---|---|---|---|---|---|
|Meet annual target for matter starts|1,480|1,887|1,295|1,431||
|Maintain the number of people who<br>get advice through pro bono clinics|175|174|175|163||
|Maintain a high level of client<br>satisfaction|95%|99%|95%|99%||
|Maintain the high % of cases that<br>have a positive outcome|92%|95%|92%|94%||
|A high % of clients who respond to<br>our survey report an improvement in<br>health and well-being|88%|94%|88%|95%||
|||||||



## **FINANCIAL REVIEW** 

The results for the year are set out on page 16. There has been a deficit for the year of £43,798 (2021-22: deficit £65,669). Income, including the value in kind of pro bono donations of goods or services valued at £75,000 (202122: £78,053), increased overall by £66,931 to £1,077,070 (2021-22: £1,010,139). The increase reflects a rise in grants to support the work of the Centre. 

Income from the Debt Free London contract, at £153,835, was lower than the previous year (2021-22: £206,583), due to a change in the contract terms. Other income for specialist advice, which comes primarily from the Legal Aid Agency and the London Borough of Camden totalled £419,354, (2021-22: £353,191). Legal aid income remained low, following a backlog of work in the Courts after the Covid-19 pandemic and which continued to impact the number of possession cases being listed, and consequently the volume and value of legal aid work has remained lower than pre-pandemic norms. 

Other sources of funding included the Access to Justice Foundation, the Henry Smith Charity, the London Legal Support Trust, Trust for London, and the Legal Education Foundation, jointly contributing £301,526. The two main corporate funders; Linklaters and Clifford Chance both continued with their generous funding, donating £83,000 and £30,000 respectively (2022: £65,000 and £30,000), and both continued to donate the services of trainee solicitors, pro bono, as in previous periods, which have been valued at a total of £75,000. 

Page 6 



## **MARY WARD LEGAL CENTRE REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JULY 2023** 

## **FINANCIAL REVIEW** (continued) 

Costs rose by £45,060 to £1,120,868 (2021-22: £1,075,808). Total salary costs were £898,072 (2021-22: £869,193), of which £75,000 (2021-22: £75,000) was the recognised value of donated services from Linklaters LLP and Clifford Chance LLP. Other admin and premises costs rose by £8,781 to £222,796 (2021-22: £206,615) during 2022-23 compared to 2021-22, a relatively modest increase of 7.8% in line with inflation in the wider economy during the period, and reflects the tightly control of expenditure during a continuing period of lower activity and sustained pressure on income. 

Costs continue to be carefully managed where possible; however, growth of services is essential in order to meet the future income targets for future sustainability, and the targets of our funders. T services remains high and the current disparity between income and costs reflect a commitment to an increase in provision, planned over the next few years. 

## **TREASURY MANAGEMENT** 

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 increase in the cash held by the Centre of £34,279 to £78,709 (2021-22: £44,430). While an improvement on the position at the end of 2022, this continuation of relatively low cash balances is indicative of the tight margins in the operational activity of the Centre. Careful treasury management will remain an essential level. 

## **RESERVES POLICY AND GOING CONCERN** 

The Centre aims to hold reserves equivalent of 1 to 3 service in the event of unexpected financial crisis. Unrestricted reserves at 31[st] July 2023 were £82,177 (2022 £125,975) a worsening from 2021-22 to 100% of the lower end of target, and 33% of the higher end (2022: 126% of lower end of target and 41% of the higher end). This reflects the reported deficit for a fourth year impacted by longer legacy of Covid-19. The above-mentioned impact on Legal Aid Agency income means that it is likely to be at least a year 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 lower activity and the cost of living crisis on its plans for growth, and the impact of key risks and uncertainties. This work has financial impact of the challenges and uncertainties that impact the Centre. , 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. As such the Board considers that the Centre has adequate resources to continue in operational existence for the foreseeable future and until at least April 2025. For this reason it continues to adopt the going concern basis in preparing the financial statements. 

## **FUTURE DEVELOPMENTS** 

Looking forward the Centre expects to be able to achieve the following: 

- To ensure pan-London provision of our specialist advice in housing, welfare benefits and debt; 

- To continue to provide a pro bono service; 

- To continue to develop new advice provision in Newham; 

- To expand our outreach provision in Camden; 

- To take an active role in advice networks, and work in partnership with local advice providers and community organisations. 

- To continue to seek new sources of income and funding to deliver specialist legal advice services including raising unrestricted income. 

Page 7 



**MARY WARD LEGAL CENTRE REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JULY 2023** 

## **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. 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 2022-23, the Centre received no complaints about its fundraising activities. 

## **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 2022 to 31[st] July 2023 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 (appointed 1[st] March 2024) Chair (from 1[st] March 2024) Nadine Cartner Graham Collins James Collins Christine Cryne Chair (until 29[th] February 2024) Kim Duong Treasurer Eva Henry Beatriz Montoya Paul Nichols Simone Selzer Sally Todd Emma Wyatt Company Secretary: Suzanna Jackson (until 20[th] March 2023) Therese Reinheimer-Jones (from 20[th] March 2023) 

## **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 

## **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 2023** 

## **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 P Nichols and Ms E Wyatt were trustees of the Centre only. All other members were also trustees of the Mary Ward Settlement Board, which provides overall leadership and strategic direction. Subcommittees 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. 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 2023 (2022: 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 over half 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 2023** 

## **RISK MANAGEMENT** (continued) 

The Centre has a strategy to expand its housing advice provision having secured additional legal aid contracts for the London boroughs of Southwark and Newham, leading to increased income streams as the services are developed and as the longer term impact of Covid-19 on legal aid income begins to recede. The key risk from this strategy relates to the current uncertainty over how quickly legal aid income will grow, following the impact of Covid-19 on the volume of housing possession work, which has impacted both income and cash flow. In mitigation, the plan to grow the team has been temporarily stalled while legal aid income has been low, and a close watch is being kept on volumes and billing. 

To address the risk of over-reliance on a small number of key funders, we 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. 

Other significant risks facing the Centre are increasing demands being placed on already hard-working staff and quality failure in the advice being offered, and in our ability to recruit good staff either to replace leavers, or as we seek to grow the Housing Team. 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. To mitigate the risk of not being able to recruit suitably qualified staff, the Centre is investing in trainee solicitor/ apprentice roles. 

Other operational risks are considered to be at a low level and are monitored by management. 

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 2023** 


preparing t tatements 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 -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** 

- there is no relevant information, being information needed by the auditor in connection with preparing their 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 info that information. 

By order of the Board of Trustees 

Frances Bates 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 ended 31 July 2023 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, l Reporting Standard applicable in the UK and Republic of (United Kingdom Generally Accepted Accounting Practice). 

In our opinion, the financial statements: 

   - July 2023 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 stand 

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 fin 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 trustee 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 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 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 

- law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the trustees , which is also the directors 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 trustee . 

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; 

- 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 the requirement to prepare a strategic report. 

## **Responsibilities of trustees** 

As explained more trustees, who are also the directors for the purposes of company law,  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 trustee 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. 

## **statements** 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from 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. 

Page 13 



**INDEPENDENT AUDITOR** ’ **S REPORT TO THE MEMBERS OF THE MARY WARD LEGAL CENTRE** 

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. 

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 

- 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 members, 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 stat e 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 chari ty’s members as a body, for our audit work, or the opinions we have formed. 

Catherine Biscoe (Senior Statutory Auditor) For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL 

Date: 11 April 2024 

Page 14 



## **MARY WARD LEGAL CENTRE** 

## **STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 JULY 2023** 

|**Notes**<br>**INCOME FROM:**<br>Donations and legacies<br>3<br>_Charitable activities:_<br>Legal Services<br>4<br>Other<br>CJRS income<br>5<br>**TOTAL INCOME**<br>**EXPENDITURE ON:**<br>_Raising funds:_<br>Generating donations<br>and grants<br>_Charitable activities:_<br>Legal services<br>6<br>**TOTAL EXPENDITURE**<br>**NET**<br>**INCOME/(EXPENDITURE)**<br>**AND MOVEMENT IN**<br>**FUNDS**<br>**Transfers between**<br>**funds**<br>**Net movement in funds**<br>**RECONCILIATION OF**<br>**FUNDS:**<br>**FUNDS AT 1st AUGUST**<br>**2022**<br>**FUNDS AT 31st JULY**<br>**2023**|**Unrestricted**<br>**Funds**<br>_£_<br>181,155<br>119,619<br>-<br>**300,774**<br>11,510<br>-<br>**11,510**<br>**289,264**<br>**(333,062)**<br>**(43,798)**<br>**125,975**<br>**82,177**|**Restricted**<br>**Funds**<br>_£_<br>18,333<br>757,963<br>-<br>**776,296**<br>-<br>1,109,358<br>**1,109,358**<br>**(333,062)**<br>**333,062**<br>**-**<br>**-**<br>**-**|**Total Funds**<br>**2023**<br>_£_<br>199,488<br>877,582<br>-<br>**1,077,070**<br>11,510<br>1,109,358<br>**1,120,868**<br>**(43,798)**<br>**-**<br>**(43,798)**<br>**125,975**<br>**82,177**|_Unrestricted_<br>_Funds_<br>_£_<br>_192,433_<br>_61,179_<br>_4,974_<br>_258,586_<br>_11,510_<br>_-_<br>_11,510_<br>_247,076_<br>_(312,745)_<br>_(65,669)_<br>_191,644_<br>_125,975_|_Restricted_<br>_Funds_<br>_£_<br>_-_<br>_751,553_<br>_-_<br>_751,553_<br>_-_<br>_1,064,298_<br>_1,064,298_<br>_(312,745)_<br>_312,745_<br>_-_<br>_-_<br>_-_|_Total Funds_<br>_2022_<br>_£_<br>_192,433_<br>_812,732_<br>_4,974_|
|---|---|---|---|---|---|---|
|||||||_1,010,139_|
|||||||_11,510_<br>_1,064,298_|
|||||||_1,075,808_|
|||||||_(65,669)_<br>_-_<br>_(65,669)_<br>_191,644_|
|||||||_125,975_|
||||||||



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 2023** 

|**Notes**<br>**CURRENT ASSETS**<br>Work in progress<br>15<br>Debtors<br>16<br>Cash at bank and in hand<br>**LIABILITIES**<br>Creditors: amounts falling due within one year<br>17<br>**NET CURRENT ASSETS**<br>**TOTAL ASSETS LESS CURRENT LIABILITIES**<br>**NET ASSETS**<br>**THE FUNDS OF THE CHARITY:**<br>**UNRESTRICTED FUNDS**<br>General fund<br>**RESTRICTED FUNDS**<br>20<br>**TOTAL FUNDS**|**2023**<br>**£**<br>253,661<br>234,130<br>78,709<br>566,500<br>(484,323)<br>82,177<br>82,177<br>**82,177**<br>82,177<br>**82,177**<br>-<br>**82,177**|_2022_<br>_£_<br>_200,444_<br>_224,375_<br>_44,430_|
|---|---|---|
|||_469,249_<br>_(343,274)_|
|||_125,975_|
|||_125,975_|
|||_125,975_|
|||_125,975_|
|||_125,975_<br>_-_|
|||_125,975_|



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 FRS102 and the special provisions of Part 15 of the Companies Act relating to small companies. 

The notes on pages 18 to 28 form part of these Financial Statements. 

Approved by the trustees on 26[th] March 2024 

Signed 

Frances Bates, Chair of the trustees on behalf of the trustees Company registration number: 2786099 

Page 16 



## **MARY WARD LEGAL CENTRE STATEMENT OF CASH FLOWS** 

## **FOR THE YEAR ENDING 31 JULY 2023** 

|Notes<br>Net cash flows from operating activities:<br>23<br>Change in cash and cash equivalents in the year<br>Cash and cash equivalents at the beginning of the year<br>Cash and cash equivalents at the end of the year|**2023**<br>**£**<br>34,279<br>34,279<br>44,430<br>78,709|_2022_<br>_£_<br>_(5,873)_|
|---|---|---|
|||_(5,873)_<br>_50,303_<br>_44,430_|



Page 17 



**MARY WARD LEGAL CENTRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023** 

## **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 2023. 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 inflow of £34,279 (2022: cash outflow of £5,873). Taking into account confirmation from the ultimate holding company, Mary Ward Settlement, that it will continue to be supportive of the operations of the Centre, the trustees are of the view that the immediate future for the Centre, over the next 12 months until at least April 2025, 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 2025, of which one, LB Camden, is secure until March 2027. 

## 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 2023** 

## **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. 

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. 

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. 

## e) 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 

## f) 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 2023** 

## **1. ACCOUNTING POLICIES** (continued) 

f) Expenditure recognition (continued) 

Expenditure comprises the costs of charitable activities in respect to the Centre 

All expenditure is stated inclusive of irrecoverable VAT. 

- g)   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. 

## h) 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. 

## i) 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% 

## j) Work in progress 

Work in progress is the estimated value of legal work that could potentially 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. 

## k) 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. 

## l) 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. 

Page 20 



## **MARY WARD LEGAL CENTRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023** 

## **1. ACCOUNTING POLICIES** (continued) 

## m) 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. 

## n) Pension contributions 

Contributions in respect of the Centre 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 emplo 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:<br>Gifts<br>Donated services|**2023**<br>**£**<br>124,488<br>75,000<br>199,488|_2022_<br>_£_<br>_114,380_<br>_78,053_|
|---|---|---|
|||_192,433_|



Gifts include payments of £83,000 from Linklaters LLP, £30,000 from Clifford Chance LLP, and £5,000 from Farrer and Co Charitable Trust. Donated services comprise the estimated value of pro bono legal services and the estimated value of 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. 

All of the above income is unrestricted except for gifts of £18,333 which are restricted (2021-22: £nil). 

## **4.     INCOME FROM CHARITABLE ACTIVITIES** 

|Legal services:<br>Revenue grants<br>Advice and casework|**2023**<br>**£**<br>304,393<br>573,189<br>877,582|_2022_<br>_£_<br>_198,402_<br>_614,330_|
|---|---|---|
|||_812,732_|



All of the above income is restricted except for revenue grants of £119,619 (2021-22: £61,179) which are unrestricted. 

Page 21 



**MARY WARD LEGAL CENTRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023** 

## **5.     OTHER INCOME** 

Income of £nil (2022: £4,974) support the salaries of staff unable to work during the lockdown period. 

## **6. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES** 

|**NALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES**|||
|---|---|---|
|Salaries (including donated services)<br>Casework costs<br>Insurance<br>Other direct costs<br>Support costs (note 9)|**2023**<br>**£**<br>660,594<br>18,567<br>3,543<br>13,976<br>412,678<br>1,109,358|_2022_<br>_£_<br>_629,210_<br>_31,835_<br>_3,328_<br>_15,182_<br>_384.743_|
|||_1,064,298_|



## **7. SUMMARY ANALYSIS OF EXPENDITURE AND RELATED INCOME FOR CHARITABLE ACTIVITIES** 

|Costs<br>Advice and casework contracts<br>Revenue grants|**2023**<br>**£**<br>(1,109,358)<br>573,189<br>304,393<br>(231,776)|_2022_<br>£<br>_(1,064,298)_<br>_614,330_<br>_198,402_<br>_(251,566)_|
|---|---|---|



Page 22 



## **MARY WARD LEGAL CENTRE** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023** 

## **8. ANALYSIS OF SUPPORT COSTS (incl. GOVERNANCE COSTS)** 

|**2023**<br>**£**<br>Staff costs<br>225,968<br>IT costs<br>34,310<br>Audit costs<br>17,000<br>Premises<br>122,881<br>Other support costs<br>12,519<br>412,678<br>**9.**<br>**NET EXPENDITURE FOR THE YEAR**<br> <br>**2023**<br>This is stated after charging:<br>**£**<br>:<br>Financial statements audit<br>9,000<br>SAR audit<br>8,000<br>Operating lease rentals<br>61,281<br>**10. ANALYSIS OF STAFF COSTS, TRUSTEE EXPENSES AND THE COST OF KEY**<br>**MANAGEMENT PERSONNEL**<br>**2023**<br>**£**<br>Wages and salaries (including £75,000 donated services (2022: £75,000))<br>780,399<br>Social security costs<br>Other pension costs<br>67,208<br>50,465<br>898,072|||||_2022_<br>_£_<br>_228,473_<br>_26,276_<br>_14,170_<br>_108,751_<br>_7,073_|
|---|---|---|---|---|---|
||||||_384,743_|
|||**2023**<br>**£**<br>9,000<br>8,000<br>61,281|||_2022_<br>_£_<br>_6,100_<br>_5,550_<br>_66,840_<br>_2022_<br>_£_<br>_754,108_<br>_65,730_<br>_49,355_<br>_869,193_|
|||||||
|||||||



No above £60,000 in the year (2022: none). 

(2022: £nil) nor did they receive any other benefits from employment, nor were they reimbursed any expenses (2022: £nil). No Centre trustee received payment for professional or other services supplied to the Centre (2022: £nil). 

Page 23 



**MARY WARD LEGAL CENTRE** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023** 

## **10. ANALYSIS OF STAFF COSTS, TRUSTEE EXPENSES AND THE COST OF KEY MANAGEMENT PERSONNEL (continued)** 

The key management personnel of the Centre comprise the Director of the Centre and those members of the Senior Management Team of Mary Ward Settlement who provided services to the Centre as part of their role for the Mary Ward Settlement. These members of staff, comprising the Warden and CEO and Director of Finance and Resources of the Mary Ward Settlement did not receive any additional remuneration for their work on behalf of the 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 £153,294 (2022: £156,393), of which £11,250 (2022: £11,234) related to the Senior Management Team of Mary Ward Settlement. Total key management personnel remuneration for the year was £71,309 (2022: £69,092). 

## **11. STAFF NUMBERS** 

The average number of staff employed each month was 24 (2022: 22). The average number of staff, in both number and full-time equivalent, employed each month was as follows: 

|Operational staff<br>Support staff|**2023**<br>**No.**<br>**fte**<br>18<br>16<br>6<br>5<br>**24**<br>**21**|_2022_<br>_No._<br>_fte_<br>_16_<br>_15_<br>_6_<br>_4_<br>_22_<br>_19_|
|---|---|---|



## **12. 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 (2022: none). 

## **13. 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. 

## **14. 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. 

## **15.   WORK IN PROGRESS** 

Work in progress is the value of legal casework not assessed by the Legal Aid Agency. 

Page 24 



## **MARY WARD LEGAL CENTRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023** 

## **16. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** 

|**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**<br>Trade debtors<br>Prepayments and accrued income<br>Other debtors|**2023**<br>**£**<br>85,916<br>134,464<br>234,130<br>13,750|_2022_<br>_£_<br>_70,723_<br>_153,652_<br>_224,375_<br>**-**|
|---|---|---|



## **17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** 

|Taxes and social security costs<br>Accruals and deferred income<br>Annual leave accrual<br>Amounts owed to group companies<br>Other Creditors|**2023**<br>**£**<br>19,406<br>289,955<br>14,938<br>158,735<br>1,289<br>484,323|_2022_<br>_£_<br>_24,528_<br>_103,819_<br>_6,669_<br>_208,258_<br>_-_<br>_343,274_|
|---|---|---|



## **18. DEFERRED INCOME** 

Deferred income is made up of income, received in advance, for services to be delivered after 31[st] July 2023. 

|Opening balance as at 1stAugust<br>Amount released to income earned from charitable activities<br>Amount deferred in year<br>Balance as at 31stJuly|**2023**<br>**£**<br>57,173<br>(57,173)<br>245,413<br>245,413|_2022_<br>_£_<br>_49,368_<br>_(49,368)_<br>_57,173_<br>_57,173_|
|---|---|---|



## **19. LEASE OBLIGATIONS** 

At 31st July the Centre had minimum lease payments under non-cancellable operating leases falling due as follows: 

|**Land and buildings**<br>Not later than one year<br>Between one and two years<br>Between two and five years|**2023**<br>**£**<br>32,500<br>32,500<br>97,500<br>162,500|_2022_<br>_£_<br>_50,130_<br>_-_<br>_-_<br>_50,130_|
|---|---|---|



Page 25 



## **MARY WARD LEGAL CENTRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023** 

## **20.   ANALYSIS OF CHARITABLE FUNDS** 

|**Restricted funds:**<br>Legal Aid Agency<br>Money<br>and<br>Pensions<br>Service<br>Debt<br>Free<br>London<br>London<br>Borough<br>of<br>Camden<br>Legal Education<br>Foundation<br>Trust for London<br>London Legal Support<br>Trust<br>Community Links<br>Citizens Advice Enfield<br>GLA AiCS<br>Linklaters LLP<br>**Total restricted funds**<br>**Unrestricted funds:**<br>General fund<br>**Total unrestricted funds**<br>**Total funds**|**Balance**<br>**1 August**<br>**2022**<br>**£**<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>125,975<br>125,975<br>125,975|**Movement**<br>**Income**<br>**£**<br>169,029<br>153,835<br>170,573<br>38,825<br>52,625<br>93,324<br>42,200<br>23,884<br>13,668<br>18,333<br>776,296<br>300,774<br>300,774<br>1,077,070|**in resources**<br>**Expenditure**<br>**£**<br>(241,549)<br>(219,837)<br>(243,756)<br>(55,483)<br>(75,203)<br>(133,363)<br>(60,305)<br>(34,131)<br>(19,532)<br>(26,199)<br>(1,109,358)<br>(11,510)<br>(11,510)<br>(1,120,868)|**Transfers**<br>**£**<br>72,520<br>66,002<br>73,183<br>16,658<br>22,578<br>40,039<br>18,105<br>10,247<br>5,864<br>7,866<br>333,062<br>(333,062)<br>(333,062)<br>-|**Balance**<br>**31 July**<br>**2023**<br>**£**<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-|
|---|---|---|---|---|---|
||||||-|
||||||82,177|
||||||82,177|
||||||82,177|



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 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 

Legal Aid Agency 

Money and Advice Service Debt Free London 

Funding for housing advice and representation (where applicable) for people eligible for legal aid. 

Funding to provide debt advice. 

London Borough of Funding to provide specialist advice in the areas of debt, housing and Camden welfare benefits, to people who live in Camden. 

The Trust for London Funding for a specialist welfare benefits caseworker. 

Legal Education Funding for a trainee solicitor as part of the LEF's Justice First Fellowship. Foundation 

London Legal Support Funding under their Centres of Excellence scheme. Trust 

Page 26 



**MARY WARD LEGAL CENTRE** 

## **NOTES TO THE FINANCIAL STATEMENTS** 

## **FOR THE YEAR ENDED 31 JULY 2023** 

## **20.   ANALYSIS OF CHARITABLE FUNDS (continued)** 

Name of Fund Description, nature and purpose of fund 

Community Links Funding to provide housing advice to users of Community Links. Citizens Advice Enfield Funding to provide housing advice to Enfield residents. 

GLA AiCS GLA Advice in Community Settings -Funding to provide advice to food bank users in Newham 

Linklaters LLP Funding to support the employment and training of a trainee solicitor. 

|**_Restricted funds:_**<br>_Legal Aid Agency_<br>_Money_<br>_and_<br>_Pensions_<br>_Service_<br>_Debt_<br>_Free_<br>_London_<br>_London_<br>_Borough_<br>_of_<br>_Camden_<br>_St Andrew Holborn_<br>_Cardinal Hume Centre_<br>_City Bridge Trust_<br>_The Henry Smith Charity_<br>_Legal Education_<br>_Foundation_<br>_Trust for London_<br>_London Legal Support_<br>_Trust_<br>_Community Links_<br>_GLA Covid Support_<br>_Citizens Advice Enfield_<br>**_Total restricted funds_**<br>**_Unrestricted funds:_**<br>_General fund_<br>**_Total unrestricted funds_**<br>**_Total funds_**|**_Balance_**<br>**_1 August_**<br>**_2021_**<br>**_£_**<br>_-_<br>_-_<br>_-_<br>_-_<br>_-_<br>_-_<br>_-_<br>_-_<br>_-_<br>_-_<br>_-_<br>_-_<br>_-_<br>_-_<br>_191,644_<br>_191,644_<br>_191,644_|**_Movement in resources_**<br>**_Income_**<br>**_Expenditure_**<br>**_£_**<br>**_£_**<br>_202,094_<br>_(286,192)_<br>_206,583_<br>_(292,549)_<br>_145,303_<br>_(205,768)_<br>_21,323_<br>_(30,196)_<br>_900_<br>_(1,274)_<br>_13,000_<br>_(18,410)_<br>_26,500_<br>_(37,528)_<br>_45,571_<br>_(64,534)_<br>_43,868_<br>_(62,123)_<br>_10,000_<br>_(14,161)_<br>_19,333_<br>_(27,378)_<br>_11,284_<br>_(15,980)_<br>_5,794_<br>_(8,205)_<br>_751,553_<br>_(1,064,298)_<br>_258,586_<br>_(11,510)_<br>_258,586_<br>_(11,510)_<br>_1,010,139_<br>_(1,075,808)_|**_Transfers_**<br>**_£_**<br>_84,098_<br>_85,966_<br>_60,465_<br>_8,873_<br>_374_<br>_5,410_<br>_11,028_<br>_18,963_<br>_18,255_<br>_4,161_<br>_8,045_<br>_4.696_<br>_2,411_<br>_312,745_<br>_(312,745)_<br>_(312,745)_<br>_-_|**_Balance_**<br>**_31 July_**<br>**_2022_**<br>**_£_**<br>_-_<br>_-_<br>_-_<br>_-_<br>_-_<br>_-_<br>_-_<br>_-_<br>_-_<br>_-_<br>_-_<br>_-_|
|---|---|---|---|---|
|||||_-_|
|||||_125,975_|
|||||_125,975_|
|||||_125,975_|



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## **MARY WARD LEGAL CENTRE** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023** 

## **21. ANALYSIS OF NET ASSETS BETWEEN FUNDS** 

|General fund<br>Restricted funds<br>_General fund_<br>_Restricted funds_|**Current**<br>**assets**<br>**£**<br>566,500<br>-<br>566,500<br>_Current_<br>_assets_<br>_£_<br>_469,249_<br>_-_<br>_469,249_|**Liabilities**<br>**£**<br>(484,323)<br>-<br>(484,323)<br>_Liabilities_<br>_£_<br>_(343,274)_<br>_-_<br>_(343,274)_|**2023**<br>**Total**<br>**£**<br>82,177<br>-<br>82,177<br>_2022_<br>_Total_<br>_£_<br>_125,975_<br>_-_<br>_125,975_|
|---|---|---|---|



## **22. POST BALANCE SHEET EVENTS** 

There have been no events that will have a material impact on the Financial Statements. 

## **23. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET FLOW FROM OPERATING ACTIVITIES** 

|Net movement in funds<br>(Increase) in work in progress<br>(Increase) / decrease in debtors<br>(Decrease) / increase in creditors<br>Net cash provided by/(used in) operating activities|**2023**<br>**£**<br>(43,798)<br>(53,217)<br>(9,755)<br>141,049<br>34,279|2022<br>£<br>_(65,669)_<br>_(22,420)_<br>_17,104_<br>_65,112_|
|---|---|---|
|||_(5,873)_|



## **Analysis of net debt** 

|**Total** **cash and cash equivalents:**Cash at bank and in hand|At 1<br>August<br>2022<br>£<br>44,430|Cash<br>flows<br>£<br>34,279|**At 31**<br>**July 2023**<br>**£**<br>78,709|
|---|---|---|---|



## **24. CLIENT MONIES** 

At 31[st] July 2023 the Centre held money on behalf of clients in "Client" bank accounts of £171,454 (2022: £95,499). 

Page 28 



## **MARY WARD LEGAL CENTRE** 

## **DETAILED INCOME AND EXPENDITURE ACCOUNT** 

## **FOR THE YEAR ENDED 31 JULY 2023** 

## **This page does not form part of the audited Financial Statements** 

|**INCOME**<br>**Grants**<br>The Henry Smith Charity<br>London Legal Support Trust<br>Legal Education Foundation<br>Trust for London<br>GLA<br>MAPS Debt Free Advice<br>LB Camden<br>GLA AiCS<br>St Andrew Holborn<br>Access to Justice Foundation<br>Advice UK<br>City Bridge Trust<br>AB Charitable Trust<br>Other<br>**Contracts**<br>Legal Aid Agency<br>Legal Help<br>Other LAA and Inter-Partes<br>Community Links<br>Citizens Advice Enfield<br>Cardinal Hume<br>**Other**<br>General donations and<br>fundraising<br>Linklaters donations<br>Clifford Chance donations<br>Farrer & Co Charitable Trust<br>Weil Gotshal & Manges<br>Powell Gilbert<br>Value in kind<br>Linklaters<br>Value in kind<br>Clifford<br>Chance<br>CJRS furlough rebate<br>**TOTAL INCOME**<br>**TOTAL EXPENDITURE**<br>**SURPLUS (DEFICIT)**||**Unrestricted**<br>**Funds**<br>**£**<br>24,089<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>92,663<br>-<br>-<br>-<br>2,867<br>119,619<br>-<br>-<br>-<br>-<br>-|**Restricted**<br>**Funds**<br>**£**<br>-<br>93,323<br>38,826<br>52,625<br>-<br>153,835<br>170,573<br>13,668<br>-<br>-<br>-<br>-<br>-<br>-<br>522,850<br>62,858<br>106,171<br>42,200<br>23,884<br>-|**Total Funds**<br>**2023**<br>**£**<br>24,089<br>93,323<br>38,826<br>52,625<br>-<br>153,835<br>170,573<br>13,668<br>-<br>92,663<br>-<br>-<br>-<br>2,867<br>642,469<br>62,858<br>106,171<br>42,200<br>23,884<br>-|**_Unrestricted_**<br>**_Funds_**<br>**_£_**<br>_-_<br>_-_<br>-<br>_-_<br>_-_<br>_-_<br>_-_<br>_-_<br>_-_<br>_3,000_<br>_20,600_<br>_-_<br>_20,000_<br>_8,580_<br>_52,180_<br>_-_<br>_-_<br>_-_<br>_-_<br>_-_|**_Restricted_**<br>**_Funds_**<br>**_£_**<br>_26,500_<br>_10,000_<br>45,571<br>_43,868_<br>_11,284_<br>_206,583_<br>_145,302_<br>_-_<br>_21,323_<br>_-_<br>_-_<br>_13,000_<br>_-_<br>_-_<br>_523,431_<br>_42,669_<br>_159,425_<br>_19,333_<br>_5,795_<br>_900_|**_Total Funds_**<br>**_2022_**<br>**_£_**<br>_26,500_<br>_10,000_<br>45,571<br>_43,868_<br>_11,284_<br>_206,583_<br>_145,302_<br>_-_<br>_21,323_<br>_3,000_<br>_20,600_<br>_13,000_<br>_20,000_<br>_8,580_<br>_575,611_<br>_42,669_<br>_159,425_<br>_19,333_<br>_5,795_<br>_900_|
|---|---|---|---|---|---|---|---|
|||-<br>6,031<br>65,000<br>30,124<br>5,000<br>-<br>-<br>25,000<br>50,000<br>-<br>181,155<br>**300,774**<br>**(11,510)**|235,113<br>18,333<br>_-_<br>-<br>_-_<br>_-_<br>_-_<br>_-_<br>_-_<br>18,333<br>**776,296**<br>**(1,109,358)**|235,113<br>6,031<br>83,333<br>30,124<br>5,000<br>-<br>-<br>25,000<br>50,000<br>-<br>199,488<br>**1,077,070**<br>**(1,120,868)**|_-_<br>_9,380_<br>_65,000_<br>_30,000_<br>_9,000_<br>_5,000_<br>_5,000_<br>_28,052_<br>_50,000_<br>_4,974_<br>_206,406_<br>**_258,586_**<br>**_(11,510)_**|_228,122_<br>_-_<br>_-_<br>_-_<br>_-_<br>_-_<br>_-_<br>_-_<br>_-_<br>_-_<br>_-_<br>**_751,553_**<br>**_(1,064,298)_**|_228,122_<br>_9,380_<br>_65,000_<br>_30,000_<br>_9,000_<br>_5,000_<br>_5,000_<br>_28,052_<br>_50,000_<br>_4,974_<br>_206,406_<br>**_1,010,139_**<br>**_(1,075,808)_**|
|||**289,264**|**(333,062)**|**(43,798)**|**_247,076_**|**_(312,745)_**|**_(65,669)_**|



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## **MARY WARD LEGAL CENTRE** 

## **DETAILED INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JULY 2023** 

**This page does not form part of the audited Financial Statements** 

|**EXPENDITURE**<br>**ADMINISTRATION**<br>Salaries and related<br>contributions<br>Postage and carriage<br>Telephone and fax<br>Printing and stationery<br>Photocopying<br>Audit and accountancy<br>Legal & professional fees<br>Travelling<br>General office expenses<br>(incl. H&S)<br>General computer expenses<br>PR literature/brochures &<br>fundraising<br>Bank charges<br>**ESTABLISHMENT**<br>Rent<br>Service charge<br>General + water rates<br>Electricity + gas<br>Cleaning<br>Premises maintenance<br>**OPERATIONAL**<br>Salaries and related<br>contributions<br>Irrecoverable disbursements<br>Client compensation claims<br>Case cost drafting fees<br>File storage<br>Solicitors practising<br>certificates<br>Insurance<br>Books + subscriptions<br>Volunteers' expenses<br>Refreshments / other staff<br>expenses<br>Professional Fees<br>Training costs<br>**TOTAL EXPENDITURE**|**Unrestricted**<br>**Restricted**<br>**Total Funds**<br>**Unrestricted**<br>**Restricted**<br>**Total Funds**<br>**Funds**<br>**Funds**<br>**2023**<br>**Funds**<br>**Funds**<br>**2022**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>-<br>225,968<br>225,968<br>_-_<br>_228,473_<br>_228,473_<br>-<br>2,911<br>2,911<br>_-_<br>_2,190_<br>_2,190_<br>-<br>523<br>523<br>_-_<br>_423_<br>_423_<br>-<br>1,830<br>1,830<br>_-_<br>_1,467_<br>_1,467_<br>-<br>1,357<br>1,357<br>_-_<br>_1,294_<br>_1,294_<br>-<br>21,069<br>21,069<br>_-_<br>_14,170_<br>_14,170_<br>-<br>-<br>-<br>_-_<br>_3,053_<br>_3,053_<br>-<br>13<br>13<br>_-_<br>_-_<br>_-_<br>-<br>-<br>-<br>_-_<br>_159_<br>_159_<br>-<br>34,310<br>34,310<br>_-_<br>_26,276_<br>_26,276_<br>-<br>1,646<br>1,646<br>_-_<br>_1,455_<br>_1,455_<br>-<br>170<br>170<br>_-_<br>_84_<br>_84_|
|---|---|
||-<br>289,797<br>289,797<br>_-_<br>_279,044_<br>_279,044_|
||-<br>61,281<br>61,281<br>_-_<br>_58,840_<br>_58,840_<br>-<br>17,151<br>17,151<br>_-_<br>_6,517_<br>_6,517_<br>-<br>11,713<br>11,713<br>_-_<br>_11,625_<br>_11,625_<br>-<br>4,959<br>4,959<br>_-_<br>_6,956_<br>_6,956_<br>-<br>11,335<br>11,335<br>_-_<br>_13,417_<br>_13,417_<br>-<br>16,443<br>16,443<br>_-_<br>_11,397_<br>_11,397_|
||-<br>122,882<br>122,882<br>_-_<br>_108,752_<br>_108,752_|
||11,510<br>660,594<br>672,104<br>_11,510_<br>_629,210_<br>_640,720_<br>-<br>572<br>572<br>_-_<br>_10,162_<br>_10,162_<br>-<br>583<br>583<br>_-_<br>_450_<br>_450_<br>-<br>2,898<br>2,898<br>_-_<br>_6,595_<br>_6,595_<br>-<br>11,782<br>11,782<br>_-_<br>_8,694_<br>_8,694_<br>-<br>2,732<br>2,732<br>_-_<br>_2,882_<br>_2,882_<br>-<br>3,543<br>3,543<br>_-_<br>_3,328_<br>_3,328_<br>-<br>3,014<br>3,014<br>_-_<br>_4,452_<br>_4,452_<br>-<br>-<br>-<br>_-_<br>_35_<br>_35_<br>-<br>637<br>637<br>_-_<br>_474_<br>_474_<br>_-_<br>7,964<br>7,964<br>_-_<br>_5,416_<br>_5,416_<br>_-_<br>2,360<br>2,360<br>_-_<br>_4,804_<br>_4,804_|
||11,510<br>696,679<br>708,189<br>_11,510_<br>_676,502_<br>_688,012_|
|||
||**11,510**<br>**1,109,358**<br>**1,120,868**<br>**_11,510_**<br>**_1,064,298_**<br>**_1,075,808_**|



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