OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2022-03-31-accounts

Registered charity number: 1084419 Company number (registered in England & Wales): 04053417

The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd (a company limited by guarantee)

Consolidated financial statements

for the year ended 31 March 2022

The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd

Consolidated financial statements for the year ended 31 March 2022

Contents

Report of the trustees 1 - 9
Auditors report 10 - 12
Consolidated Statement of Financial Activities 13
Consolidated Balance Sheet 14
Consolidated Statement of Cash Flows 15
Notes to the financial statements 16 - 24

The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd

Report of the Trustees for the year ended 31 March 2022

The trustees present their annual directors’ report together with the consolidated financial statements of the charity and its subsidiary for the year ending 31 March 2022 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

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) (effective 1 January 2019).

Objectives and activities

Objects

The objects of the charity are: "To promote any charitable purpose in particular the relief of poverty, sickness and distress, the advancement of education, the preservation and protection of health, the provision of public works and services and public amenities and facilities for recreation or other leisure time occupation in the interests of social welfare, particularly through the promotion of efficiency and good practice in local government."

The charity's governing documents permit it to do anything lawful that is deemed necessary to promote its objects, including (inter alia): employing staff; promoting, encouraging or undertaking study or research or disseminating the results of such; producing, printing and publishing anything in written, oral or visual media in furtherance of the objects; providing or procuring the provision of services, training, consultancy, advice, support, counselling and guidance in furtherance of the objects or any of them; promoting and supporting such legislative, social and administrative reform as may assist the charity's objects; and, entering into any arrangements with any governments, authorities or any person, company or association necessary to promote any of the charity's objects.

Aims and purpose

Strategic aims of the charity are focused on:

The Solace group's purpose is:

Achievements and performance

2021-22 was a transitional year for the Solace group, following on from the organisation's swift response to the Covid-19 pandemic during the previous year which had enabled a shift in service delivery to suit a very different context whilst retaining focus on our core purpose and maintaining a robust financial position.

While the context in which the charity and it's trading subsidiary operate has changed significantly over the past two years, our overall purpose, strategy and medium-term priorities remain pertinent - meaning that as the pandemic progressed and constraints changed we were able to respond in a timely, safe and sustainable fashion. However, different elements of the group's activities emerged from the greatest impact of the pandemic on them at different times and in different ways. In some business areas (e.g. interim recruitment) the market in the which organisation operates and our own approach both adapted quickly and enabled consistent performance throughout the year ending 31 March 2022. Other activities (e.g. permanent recruitment and events) have taken longer to adapt and recover given the constraints on physical meetings.

Policy

Solace continues to act as an important source of local government insight for the national government. Through our President and policy leads, we were able to ensure local government’s professional voice was heard clearly throughout 202122 as important decisions were being made in Whitehall. We also had civil servants attending our policy board; this meets monthly and provides an important sounding board for stakeholders as well policy leads within the local government sector.

1

The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd

Report of the Trustees (continued) for the year ended 31 March 2022

Achievements and performance (cont'd)

The increased level of engagement with Government resulted in over 300 related meetings during the year as well as over 500 meetings with other stakeholders. Engagement levels maintained throughout the year enabled the influence of Government and other key stakeholders on longer term issues as well as on the immediate response to critical issues as they emerged. Simultaneously, Solace still regularly contributed within sector media and others. This enabled us to create a wider influence and ensure that the professional voice of local government is still heard; for example, Solace contributed 27 media articles across the year as well as 119 press mentions.

Member Engagement

In 2020-21 the Covid-19 pandemic completely changed our approach to events, with no face-to-face activity and our whole programme quickly moving online. During 2021-22 we continued the online focus but started a return to face-toface events towards the end of the year. However this transition has been slow, constrained in part by the changing levels of restrictions in place at any one time but also by sector leaders' continued focus on place and a general malaise regarding a return to travel.

With the local government sector on the frontline of the pandemic response individuals continued to be under significant pressure and operating in an environment new to everyone. In that context, the support of coaches and mentors proved invaluable and by the end of the year 315 individuals had utilised this support through the charity.

Leadership development

The charity also supported the learning of 966 individuals as part of our organisational development activity across 52 organisations. Overall, our most significant leadership development programmes during the year remained:

Recruitment support

The interim and permanent recruitment activity of the trading subsidiary, Solace In Business, has again provided over £450,000 in the year to March 2022 to help support Solace’s charitable aims. Solace In Business complements the aims and objectives of the charity by being grounded in public service values and through its placement of quality resources into the local government sector. The social enterprise model enables it to shape the market – for example in areas such a gender equality and wider diversity challenges – in a manner not replicated by competitors. These non-financial benefits remain an important addition to the financial contribution which helps ensure Solace is able to grow the breadth and depth of its support to individual members and also contribute to the wider improvement of the local government sector.

Key performance indicators

In addition to detailed management accounts, a range of indicators are used by the trustees and executive management to monitor and direct activities as appropriate. These include monthly reporting and discussion of key operational and impact measures for each area of the group, refreshed annually as part of the business planning and budgeting process dependent on the agreed focus for each area for the relevant period(s). Examples include: income and margins; sickness absence; membership renewals and additions; number of learners supported; number of organisations worked with; conversion rates for tendered activity; associates utilisation; customer satisfaction; and, website and social media performance (viewings, click throughs and interactions). Further information is given in the section of this report relating to Future Plans.

2

The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd

Report of the Trustees (continued) for the year ended 31 March 2022

Public Benefit

The aims and activity of the charity provide benefits to the public through a variety of means, including:

These benefits have this year been primarily achieved through the achievements, performance and activities highlighted above.

In the furtherance of these aims the directors have complied with the duty in s.4 of the Charities Act 2011 to have due regard to the Charity Commission's published general and relevant sub-sector guidance concerning the operation of the public benefit requirements under that Act.

Financial Review

Investment policy

Investment powers are governed by the Articles of Association. Currently there are no investment restrictions in place and the investment objectives are: a balance of capital growth and income from investments; and, an overall medium tolerance of risk. The investment is therefore held in a mixture of medium to high risk investment portfolios. Financial gains from the current investments are automatically reinvested.

Investment performance

Evelyn Partners (formerly Tilney Smith & Williamson) continue to manage an investment portfolio on behalf of the charity. The portfolio was valued at £158,546 on 31 March 2022 including a £2,840 gain on revaluation. In the year ended 31 March 2022 there was an overall £2,558 net increase in funds after investment management charges (note 14).

Whilst funds are invested in medium to high risk portfolios the investment manager has advised that "the indirect investment approach of the investment trust holdings within the portfolio are of a less risky nature than a single direct equity investment, although technically the same risks apply due to the legal structure of investment trusts".

Results for the year

Full details of the financial transactions are contained in the attached financial statements.
Total income for the year was
After deducting expenditure of
The net income / (expenditure) before recognised gains / (losses) was
The net assets of the charitable group at 31 March 2022 were
Available funds
At 31 March 2022 the charity had freely available reserves for its general purposes amounting to
This comprises the balance in unrestricted funds, excluding tangible fixed assets and investments.		 £
8,214,128
8,115,409
98,719
1,811,020
£ 1,066,433

Reserves Policy

The charity's reserves policy is based on the value of unrestricted reserves excluding designated funds, with a target of covering 6 months operating costs (calculated to be £838,320 as at 31 March 2022) and a minimum of 3 months operating costs (£700,270 as at 31 March 2022). At £1,090,066 (note 20) the value of unrestricted reserves excluding designated funds as at 31 March 2022 compares favourably to the stated target reserves level. In the event that future circumstances require it, currently designated funds may be undesignated in order to address required needs.

Risks and uncertainties

Trustees have a duty to identify and review risks to which the charity is exposed and ensure appropriate controls are in place, including the provision of reasonable assurance against fraud and error. The trustees therefore closely monitor the operations of the charity and its trading subsidiary and review on a regular basis the nature of potential risks, their potential impact, likelihood of occurrence and means of mitigating them. As part of this process the trustees consider the adequacy of current internal controls and their ongoing suitability.

3

The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd

Report of the Trustees (continued) for the year ended 31 March 2022

Risks and uncertainties (cont'd)

Government policy changes relating to and/or affecting the public sector are considered to be the principal risks and uncertainties. These are primarily dealt with by staying close to the sector and through active engagement in policy discussions, as already referenced earlier in this report.

Proactive, effective engagement with our members, partners and sector interest groups provides up-to-date intelligence which allows potential issues to be identified in a timely manner. This enables the Solace group to plan and respond accordingly based on sound management and control across all areas of the organisation, including specific operational and cost changes as necessary. Our response to, and impact management of, the Covid-19 pandemic is an example of successfully addressing an emergent risk and uncertainty and its impact on the group’s workforce, on market conditions and on future funding and requirements of the organisation's principal customer base.

Financial risk management

The charity and its subsidiary use financial instruments comprising cash and debtors. Their main purpose is to finance the working capital cycle of the group. Policies for managing financial risks open to the group are:

Price risk A range of suppliers are used to ensure market prices are not exceeded. Contracts are used for the supply of a range of goods and services and these are reviewed on a regular basis.

Credit risk Customers are largely public sector organisations who by their nature are considered 'low risk'. Many are long-standing customers. Effective credit management procedures are also in place.

Interest risk Returns on cash are maximised through utilising a range of interest bearing bank accounts. Liquidity risk A range of bank accounts are used which enable access to funds in line with cash flow projections. Group companies have a good relationship with their bankers.

Future Plans

In March 2022 the Solace group board and trading subsidiary board re-confirmed the long-term purpose and goals of the organisation and set identified priority programmes for the year ahead.

Future Plans: 2030 goals

Future Plans: 3-year priorities

Over the next three years the goals set out above will be pursued by focusing on the following areas:

Nurture a stronger relationship between Solace and the individuals we support by investing in member and client engagement

The breadth and status of the Solace network is our most significant competitive advantage across all service areas and has been identified as core to our unique selling point in all our markets. We continue to invest in technology to improve the management of information across this network and to build on the inter-connectivity of our services. We need to complete this work and fully embed those systems into the processes and culture of the organisation.

In order to optimise the use of these new tools available to us, we need to focus on closer and more consistent engagement with members and our wider client base, and ensure this drives improved responsiveness across all services.

At a national level this includes developing smooth, clear customer journeys so members and clients can access the full range of support they need in the most appropriate way. For example, our approach to pastoral support for members is currently ad hoc and inconsistent and requires a standardised and reliable approach which connects members with the breadth of personal and organisational support available.

4

The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd

Report of the Trustees (continued) for the year ended 31 March 2022

Future Plans: 3-year priorities (cont'd)

Nurture a stronger relationship between Solace and the individuals we support by investing in member and client engagement (cont'd)

Our regional footprint is also variable, both across the UK but also across different service lines. We will explore new models of regional working to improve both member engagement and business development through personalised contact, events and regional approaches to leadership development.

Our associate base is another pool of untapped business development resource which we aim to gain greater leverage from. We need to ensure that the diversity and capability within our associate base is strong, relevant and of high quality, while improving the two-way sharing of insight on Solace services and the sector itself.

Key performance indicators for this area include:

Increase our relevance to a broad and diverse group of individuals throughout their career by improving our offer beyond executive members

The review of membership was a key priority during our last business plan period and led to a significant change of focus for the organisation. The impact of this change is being felt across all service areas and has led to a broadening of our offer, particularly in membership, events and learning and development.

Prior to the pandemic our membership has consistently grown, but in recent times this has stalled relative to our ambition. We have failed to attractive significant numbers in our early career and established leader categories except where they are originally engaged through a learning and development programme. We are therefore creating a more valued product for individuals in the early part of their career, with greater emphasis on digital content and formats more accessible to them so they are able to begin their engagement with the organisation in advance of being a paying member.

Key performance indicators for this area include:

Evidence and promote our dynamism and expertise throughout our network, across the sector and with our stakeholders by investing in research, quality assurance and communications

Solace seeks to be an evidence-led organisation focused on the quality of our service. This is embedded in our values and across each area of work. Given our values and unique position in the market, this is an opportunity to distinguish ourselves from our various competitors and cement our position in our members and clients’ perceptions of value. Our brands lend themselves to supporting this and it forms a valuable part of the content of our future marketing and communication activity, from policy related research to individual bid writing.

Key performance indicators for this area include:

Strengthen Solace’s long-term future by creating a more robust, digitally mature, learning organisation

Solace is investing in its digital infrastructure in order to enable a greater, more innovative level of digital working. Our approach to learning and events in particular was accelerated and transformed during the recent pandemic and the significant upgrade in our infrastructure means that we are now better placed to offer access to services online and accessibly. The bedrock of this investment is our upgraded CRM system and website, with further revisions and improvements continuing to roll-out into the next business planning period. These will deliver projects to improve our digital capabilities across all our established markets.

5

The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd

Report of the Trustees (continued) for the year ended 31 March 2022

Future Plans: 3-year priorities (cont'd)

Strengthen Solace’s long-term future by creating a more robust, digitally mature, learning organisation (cont'd)

As a small business operating across a range of diverse markets, internal capacity and capability have been identified as core corporate risks during the period of the current business plan as our individual teams can lack resilience when compared to key competitors. While our team structures give the organisation a degree of agility, specialisation in some areas is difficult and potentially leaves us vulnerable to resourcing challenges including staff recruitment, staff career development and absences.

To mitigate these challenges we will continue to target revenue growth and make proportionate increases to the staff team to safely support this - targeted at service areas where there is realistic potential and where increased scale will deliver wider benefits to the strategic and operational management of the organisation.

Key performance indicators for this area include:

Key strategic programmes for 2022-23

In addition to the general activity outlined above, for 2022-23 the executive team have identified five key programmes of activity to deliver against the indicated 3-year priorities. These are:

Accommodation:

The group’s existing office accommodation is not suitable for current or future needs in terms of its condition, ventilation, layout, capacity or accessibility. A lease break option has therefore been exercised which crystallises in August 2022. New workspace arrangements are being pursued and are expected to begin during the 2022-23 financial year which:

Digital:

Much of the current Solace offer remains reliant on personal relationships and face-to-face interactions, despite the significant changes made during the past two years. This is a positive attribute for some of our services and particularly those aimed at the most senior staff in the sector, whether that be memberships, personal development, or recruitment. However, this is a limiting factor on the organisation and a different, more digitally enabled approach is required if greater scale is to be achieved.

Research has also told us that our current and potential early career and established leader members are also looking for products and other content from us that is available to self-serve. Continued development of our online presence and offer will be based on an interactive, responsive, intelligent system enabling an enhanced member/customer experience.

Anti-racism:

The diversity of Local Government senior management across the UK does not currently reflect the communities that it serves in term of race. The challenge is wide-ranging but Solace has identified three specific areas on which to focus: an absence of support targeted at black and other ethnic minorities council employees to help them into senior roles in the sector; no benchmark for what council's might consider good in this area or to support improvement; a lack of data on the ethnicity profile of council senior staff to enable objective analysis of the current status.

The Solace Board has therefore prioritised three specific actions: a development programme targeted at individuals from ethnic groups currently thought to be underrepresented in local government senior management; a consultancy offer/challenge aimed at supporting councils to improve their approach and a support service to help them implement it; and, improved data in this area including regular reporting on the ethnic profile of senior management in the sector.

Workforce:

As Solace continues to develop as an organisation our people will be asked to work in different ways and to achieve different ends than may have previously been the case, particularly in the context of a 'new normal' for increased digital engagement and fresh ways of working. We also want to promote the diversity of individual voices and to enhance the extent to which our workforce reflects the communities served by our clients.

6

The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd

Report of the Trustees (continued) for the year ended 31 March 2022

Key strategic programmes for 2022-23 (cont'd)

Workforce (cont'd):

The organisation’s approach to on-boarding new staff will therefore be refreshed along with a range of staff-related policies and procedures, each ensuring that appropriate culture and values are hardwired into the fabric of the changing organisation and developed with contribution from our staff engagement group and a continued focus on wellbeing.

Leadership Academy:

The impact of the pandemic has exposed the challenge of recruiting and retaining a cadre of highly motivated and capable senior managers in local government. Individuals are reaching senior roles without the breadth and depth of experience that was previously the norm. This increases the potential for mismanagement or failures in governance and increases risks for local councils. Unlike other parts of the public sector there is no coordinated approach or funding to lead or invest in the development of a local government leadership pipeline.

Solace is uniquely positioned to work with Government to establish a ‘Leadership Academy’ similar to those provided by other parts of the public sector. This is a significant, vision project for which 2022-23 would see foundational development activity towards a coordinated and inclusive approach to local government workforce investment and development, and ultimately the access to structured career management and progression.

Structure, Governance and Management

Governing document

The charity is controlled by its governing document (a deed of trust dated 9 January 1986), and constitutes a company limited by guarantee (incorporated in England & Wales). It is governed by Memorandum and Articles of Association which were last amended and ratified by the company in general meeting on 17 October 2018.

Organisational structure

The charity is governed by directors who are also the trustees of the charity, as listed on page 8. The directors are responsible for administering the funds in accordance with the Trust Deed.

The directors meet a minimum of four times a year, to set organisational strategy and business plans and to review operational and financial performance. When carrying out their governance duties for the charity, the directors have regard for the guidance on public benefit published by the Charity Commission.

Day to day responsibility for running the charity is delegated to the Managing Director and senior executive staff, based on appropriate schemes of delegation determined by the directors.

Recruitment and appointment of new directors

Directors of the charity are identified from within the membership and appointed at the Annual General Meeting.

Third party indemnity provision for directors

The charity has third party indemnity insurance in place covering all directors of the charity .

Induction and training of new directors

New directors receive an induction programme which includes information and guidance on the liabilities and responsibilities of company directors and charity trustees, a copy of the Memorandum and Articles of Association and background information relating to budgets, forward plans and details of previous key decisions.

Disability and equality policy

All applicants for positions with the charity are given full and fair consideration. Employment, training and general policies are applied equally to all affected individuals.

Pay policy for senior staff

The directors consider that the board of directors (who are the charity's trustees) and the executive heads of service comprise the key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis.

7

The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd

Report of the Trustees (continued) for the year ended 31 March 2022

Pay policy for senior staff (cont'd)

All non-executive directors give of their time freely in that capacity and no director received remuneration during the year (2021: £nil) in connection with their appointment or duties as a director of the charity. Details of directors' expenses are provided in note 12 to the financial statements.

Staff pay is reviewed annually. Recommendations relating to senior staff and executive directors are considered by the non-executive directors on the Board or by a sub-committee of non-executive directors and relevant advisors. Any agreed pay increase would generally be based on consideration of a range of potential influencing factors, such as inflation measures and public sector pay awards. Market rates for comparable roles are also periodically considered, particularly as part of recruitment activities.

Directors and trustees

The directors of the charitable company (the charity) 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:

Key management personnel: Trustees and Directors of The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd

Specified elected roles:

Specified elected roles:
Chair: G L Jones
Finance lead: A W Muter
Solicitor/Company Sec: D E Forrester-Brown
President: J L Roney
SIB Chair: R E Hyde
Other elected non-executive directors:
S L Bridglalsingh (appointed 13 October 2021, resigned 17 June 2022)
J Burns D V Plank
A M Donaghy E Rogers (appointed 13 October 2021)
S H Fitzgerald J R Rowlands (appointed 13 October 2021)
P R Frainer S L Sanders
A M Hill D Terris (resigned 14 June 2021)
N Hussain-Duke D R Thomas (appointed 13 October 2021)
C D Naylor M T Weastell (resigned 13 October 2021)
Employed executive director:
G V McDonald
Key management personnel: Senior managers of
The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd
Managing Director G V McDonald
Director of Learning T I Birtwell
Director of Engagement J A Howarth
Director of Policy, Partnerships & Public Affairs A J B Thomson

Key management personnel: Senior managers of Solace In Business Ltd

Business Development Director T J McDougall
Director of Corporate Resources S R P Chambers
Director of Executive Resourcing & Assessment S J Guest
Director of Interim Management J K Mullinger

Our advisers

Auditors SMH Jolliffe Cork Audit Ltd, 33 George Street, Wakefield WF1 1LX Bankers Lloyds Bank plc, 27-31 White Hart Street, High Wycombe, HP11 2HL National Westminster Bank Plc, 23 Uplands Crescent, Swansea SA2 0NY

8

The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd

Report of the Trustees (continued) for the year ended 31 March 2022

Reference and administrative details

Company number 4053417
Charity number 1084419
Registered office 33 George Street
Wakefield
West Yorkshire
WF1 1LX

Trustees' responsibilities in relation to the financial statements

The charity trustees (who are also the directors of The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd for the purposes of company law) are responsible for preparing a 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 charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing the financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and the group and hence 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 charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement as to disclosure of information to the auditor

In so far as the trustees are aware at the time of approving the trustees’ annual report:

Signed on behalf of the trustees on 16th September 2022

G L Jones Trustee

9

Independent Auditor's Report to the Members and Trustees of The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd

for the year ended 31 March 2022

Opinion on financial statements

We have audited the financial statements of The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd for the year ended 31 March 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated and the Parent Charity Balance Sheet, the Consolidated Cash Flow Statement and the related notes. 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:

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 requirements. 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 case significant doubt on the group's and the parent 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’ annual report, 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.

In connection with our audit of the financial statements, 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 matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

10

Independent Auditor's Report to the Members and Trustees of The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd (continued)

for the year ended 31 March 2022

Matters on which we are required to report by exception

In light of our knowledge and understanding of the group and parent 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:

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors of the charitable company 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 trustees are responsible for assessing the group and parent 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 group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the 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:

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatements in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

11

Independent Auditor's Report to the Members and Trustees of The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd (continued)

for the year ended 31 March 2022

The extent to which the audit was considered capable of detecting irregularities including fraud (cont'd)

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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 directors 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 our report

This report is made solely to the charitable company's members and 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 charitable company's members and trustees those matters 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 charitable company, the charitable company's members and trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Claire Lawton FCA DChA (Senior Statutory Auditor) for and on behalf of SMH Jolliffe Cork Audit Ltd Chartered Accountants and Statutory Auditor 33 George Street Wakefield, WF1 1LX

23rd September 2022

12

The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd

Consolidated Statement of Financial Affairs (including consolidated income and expenditure account) for the year ended 31 March 2022

Notes
Donations
Income from charitable activities
4
Income from other activities
Commercial trading operations
5
Government grants
6
Income from investments
7
Investment management costs
8
Commercial trading operations
5
Expenditure on charitable activities
Education & Training
10
Membership services
10
Net income / (expenditure)
before transfers
Gross transfers between funds
Net income / (expenditure)
before recognised gains / (losses)
Other recognised gains / (losses)
Unrealised gains / (losses) on investments
Net movement
in funds for the year
Reconciliation of funds
20
20
Total funds brought forward
Total expenditure
1,368,311
7,933,019
2,840
2,422
1,749,770
622,397
-
6,058,158
2,268
5,558,430
1,373,253
INCOME
EXPENDITURE
Cost of raising funds
Total income
1,874,167
7,935,121
528
Funds
£
Unrestricted
2,102
-
2,102
4,942
Total funds carried forward		 182,390
-
-
-
-
-
Funds
£
279,007
-
279,007
-
-
182,390
Restricted
341,150
96,617
-
96,617
96,617
437,767		 1,709,461
98,719
-
8,115,409
98,719
101,559
2,840
2,422
622,397
565,781
6,876,184
82,609
-
2,268
5,558,430
6,958,793
1,811,020
1,932,160
8,214,128
2,153,174
-
6,058,158
528
2022
Total
Funds
£
Funds
£
Unrestricted
-
1,343,082
5,577,081
35,485
3,145
1,188,174
2,264
5,119,965
123,747
1,244,564
1,368,311
82,609
41,138		 -
260,233
189,767
Restricted
Funds
£
-
450,000
-
-
-
260,233
450,000
-
-
189,767
151,383
341,150
-
189,767
-		 -
1,793,082
5,577,081
3,145
35,485
£
2021
Total
Funds
2,268
2,153,174
-
6,058,158
528
2022
£
8,214,128 7,408,793
2,422
622,397
5,558,430
1,932,160		 2,264
565,781
1,448,407
5,119,965
8,115,409 7,136,417
98,719
-		 272,376
-
98,719
2,840		 272,376
41,138
1,709,461
101,559		 1,395,947
313,514
1,811,020 1,709,461

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 16 to 24 form an integral part of these financial statements.

13

The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd

Consolidated Balance Sheet as at 31 March 2022

Notes
Tangible assets
13
Investments
14
Total Fixed Assets
Debtors
15
Cash at bank and in hand
Total Current Assets
within one year
16
Total assets less current liabilities
Provisions for liabilities and charges
17
Net Assets
The funds of the charity
Unrestricted income funds
20
Restricted income funds
20
Total charity funds
Fixed assets
Current assets
Net current assets
Creditors:falling due		 1,811,020
158,546
306,820
3,330,687
1,756,798
1,573,889
1,880,709
Group
£
148,274
2022
1,373,253
437,767
1,365,451
1,965,236
1,811,020
69,689		 155,988
1,123,553
1,375,866
Group
2021
345,546
1,739,424
3,115,290
1,721,412
11,951
189,558
£
1,368,311
1,709,461
341,150
1,991,737
1,709,461		 1,283,506
972,915
90,011
788,440
336,538
1,761,355
-
310,591
Charity
2022
£
1,424,817
220,580
845,739
1,283,506
437,767
1,283,506		 122,937
£
218,022
Charity
2021
340,959
1,389,430
216,327
1,605,757
720,972
884,785
1,225,744
-
1,225,744
884,594
341,150
1,225,744

The trustees have prepared group accounts 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 accounts required by the Companies Act 2006 and are for circulation to members of the company.

The financial statements were approved by the Trustees on

16th September 2022 and signed on their behalf by:

G L Jones Trustee

The notes on pages 16 to 24 form an integral part of these financial statements.

14

The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd

Statement of Cash Flows and Consolidated Statement of Cash Flows as at 31 March 2022

Cash flows from operating activities
Net movement in funds for the year
Adjustments for:
Depreciation
Unrealised investment (gains) / losses
Re-invested dividend income
Fees netted off investment portfolio
Interest received
Loss / (gain) on disposal of fixed assets
Decrease / (increase) in debtors
Increase / (decrease) in creditors
Increase / (decrease) in provisions
Cash generated from / (used in)
operating activities
Cash flows from investing activities
Interest received
Fixed asset purchases
Released from managed portfolio
Cash provided by / (used in)
investing activities
Cash flows from financing activities
Increase / (decrease) 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		 (15,929)
2,422
(10,700)
128
(2,140)
57,738
(128)
(241,898)
-
17,374
-
(15,801)
-
1,991,737
(26,501)
1,965,236
(2,840)
Group
101,559
2022
£
57,213		 (81,041)
549,446
494
-
2,264
(31,333)
250,954
7,256
(41,138)
(2,651)
(494)
-
(80,547)
-
1,522,838
468,899
1,991,737
Group
313,514
2021
£
51,074		 (4,196)
2,422
39,569
14
(2,140)
(14)
(120,211)
-
-
67,468
-
(4,182)
1,424,817
-
1,389,430
35,387
Charity
(2,840)
2022
£
57,762
37,122		 2,264
(41,138)
(2,651)
(146)
-
100,034
-
35,376
103,769
Charity
2021
£
336,753
534,261
(34,405)
146
-
(34,259)
-
889,428
500,002
1,389,430

15

The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd

Notes to the Consolidated Financial Statements for the year ended 31 March 2022

1 Accounting policies

1.1 Basis of preparation

The financial statements 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 (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

The charity's functional and presentation currency is the pound sterling £. All financial information presented has been rounded to the nearest £, unless otherwise stated.

1.2 Basis of consolidation

The group financial statements consolidate the results of The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd and its subsidiary Solace In Business Ltd.

Subsidiary undertakings are included using the acquisition method of accounting. Under this method the group net incoming resources include the results of subsidiaries from the date of acquisition and to the date of sale outside the group in case of disposals of subsidiaries. The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of acquisition.

The trustees have taken advantage of the exemption afforded by section 408 of the Companies Act 2006 and a separate Statement of Financial Activities and income and expenditure account for the charity has therefore not been presented.

1.3 Going concern

The financial statements have been prepared on a going concern basis. In preparing the accounts the trustees have considered possible risks, events or conditions that might cast significant doubt on the ability of the charitable company to continue as a going concern and therefore on the appropriate use of the going concern basis.

Regularly monitoring the operational and financial performance of the charity and its subsidiary is part of the routine activities of executive management (monthly) and of the separate company boards (quarterly). This includes detailed management accounts and the analysis of pipeline activity (income and margins), together with performance indicators ranging from opportunity conversion rates to customer satisfaction across all areas of activity. Financial forecasts for the period through to 31 August 2023 have, together with current reserves and cash balances, also been reviewed as part of that regular monitoring activity. Based on such reviews and related enquiries, the trustees have concluded that there is a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future and therefore they have continued to adopt the going concern basis in preparing its financial statements.

1.4

Fixed assets

Improvements to short leasehold property Over the term of the lease Fixtures & Fittings 25% on reducing balance Computer equipment 20% or 33% on cost

1.5 Fixed Asset investments

Investments in subsidiaries are stated at historical cost less provision for diminution in value. Other investments are stated at fair value.

1.6 Income recognition

16

The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd

Notes to the Consolidated Financial Statements (continued) for the year ended 31 March 2022

1.6 Income recognition (cont'd)

1.7 Gift aid distribution from subsidiary company to parent charity

Profits over and above those needed to meet the working capital requirements of subsidiary companies are transferred to the parent charity by way of a gift aid distribution. As no legal obligation exists, the distributions in respect of the current and comparative year represent amounts paid as at the balance sheet date.

1.8 Expenditure

1.9 Support costs

Support costs relate to functions that assist the work of the charity but do not directly undertake charitable activities. They include back office, finance, personnel, payroll and governance costs (e.g. the preparation and examination of the statutory accounts, the costs of directors meetings and the cost of legal advice on constitutional matters). The bases on which support costs have been allocated are set out in note 11.

1.10

Operating leases

Rentals payable under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term.

1.11

Pensions

The charity operates a defined contribution pension scheme. Contributions are recognised in the Statement of Financial Activities in the period in which they become payable in accordance with the rules of the scheme.

1.12 Fund accounting

The charity has various types of funds for which it is responsible, and which require separate disclosure. These are as follows:

2 Legal status and control

The charity is a company limited by guarantee. All members have agreed to contribute an amount not exceeding £1 each to the assets of the company in the event of it being wound up.

The charity is controlled by its members. Membership of the charitable company is open to individuals designated as senior officers of local authorities in England, Scotland, Wales, Northern Ireland, the Channel Islands and the Isle of Man. Membership is also open to senior officers of any joint or other board, authority or committee exercising local government or police functions in any of the indicated geographic areas.

Elected members of local authorities are not eligible to for membership of the charitable company, notwithstanding that they may be otherwise qualified.

17

The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd

Notes to the Consolidated Financial Statements (continued) for the year ended 31 March 2022

3 Financial performance of the charity

The Consolidated Statement of Financial Activities includes the results of the charity's wholly owned subsidiary company (note 5), which provides Interim placement and executive recruitment services. The summary financial performance of the charity alone is as follows:

Donations
Government grants (note 6)
Gift aid distribution from trading subsidiary (note 5)
Income from investments
Income from charitable activities
Investment management fees
Expenditure on charitable activities
Net income
Unrealised gains / (losses) on investments
Total funds brought forward
Total funds carried forward
Represented by:
Restricted income funds
Unrestricted income funds
4 Income from charitable activities
Education and training
Membership activities		 Total
Unrestricted
Funds
£
-
456,250
Restricted
Funds
£
-
-
2,154
1,874,167
-
279,007
323
-
Total
2022
2021
£
£
2,797
2,154
-
-
2,153,174
1,793,082
456,250
510,000
323
6,190		 Total
Unrestricted
Funds
£
-
456,250
Restricted
Funds
£
-
-
2,154
1,874,167
-
279,007
323
-
Total
2022
2021
£
£
2,797
2,154
-
-
2,153,174
1,793,082
456,250
510,000
323
6,190
(2,372,167)
(2,014,190)
(2,422)
(182,390)
2,332,894
(2,422)
279,007
(2,554,557)
2,611,901
2,312,069
(2,264)
-
(41,695)
2,840
884,594
96,617
-
341,150


1,225,744
888,991
2,840
41,138
295,615
54,922
845,739
437,767		 1,225,744

1,283,506
310,280
1,563,887
235,000
44,007
£
£
Unrestricted
Restricted		 437,767
341,150
884,594
845,739
1,283,506
1,225,744


1,798,887
1,492,117
300,965
354,287
£
Total
£
Total
2022
2021
Funds
Funds
1,874,167
279,007		 2,153,174
1,793,082

Restricted income relating to education and training represents grant funding received in relation to specified activities.

5 Income from commercial trading operations

The charity has one wholly owned trading subsidiary, Solace In Business Ltd (note 14), which is incorporated in England and Wales and provides recruitment services to the public sector. Profits over and above those needed to meet the working capital requirements of the subsidiary are transferred to the charity by way of a gift aid distribution. The distribution amounts stated below are the total sums paid across within the relevant financial year.

The summary financial performance of the subsidiary alone is as follows:
Turnover
Government grants (note 6)
Cost of sales and administration costs
Exceptional costs
Interest receivable
Net profit
Taxation
Profit for the financial year
Gift aid distribution to parent charity
Retained in subsidiary		 5,577,081
(5,506,764)
(5,112,709)
2022
2021
£
114
348
£
6,058,158
(63,346)
-
205
29,295
488,367
494,015
11,680
(7,256)
500,047
486,759
(456,250)
(510,000)
43,797
(23,241)

18

The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd

Notes to the Consolidated Financial Statements (continued) for the year ended 31 March 2022

5 Income from commercial trading operations (cont'd)
The assets and liabilities of the subsidiary were:
Fixed assets
Current assets
Current liabilities
Provisions for liabilities and charges
Total net assets		 58,283
66,641
1,572,563
1,518,787
(971,613)
(1,027,730)
£
£
2021
2022
(11,951)
(69,689)
589,544
545,747

The financial performance of the subsidiary for the year ended 31 March 2022 includes an exceptional cost item amounting to £63,346 in connection with the cessation of two operating leases related to land and buildings. In both instances, prior to 31 March 2022 the company issued break notices in line with the terms of the relevant lease and it has therefore provided for costs relating to the cessation of those leases during the year to 31 March 2023 including related dilapidations works.

6 Government grants
Coronavirus Job Retention Scheme
Other government grants		 426
477
Total
Total
2022
2021
102
35,008
£
£
528
35,485

Coronavirus Job Retention Scheme grant was received for the purpose of paying staff furloughed because of the impact of Covid-19. There are no unfulfilled conditions or contingencies attaching to receipt of this grant. Staff placed on furlough durign the period received 80% of their normal salary, including any relevant individual for whom regular earnings exceeded the maximum grant claim amount specified by the Coronavirus Job Retention Scheme.

Other government grants relate to Coronavirus Statutory Sick Pay claims.

7 Investment income
Dividends
Bank and other interest
8 Investment management costs
Portfolio management
9 Staff costs and numbers
Salaries
Social security costs
Pension costs
The average monthly number of employees during the year was as follows:
Executive directors
Other staff		 £
2,140
2,651
128
494
£
2022
2021
2,268
3,145
2022
2021
2,264
2,422
£
£
2022
2021
£
£
1,599,888
1,371,276
145,322
133,244
101,236
93,737
1,598,257
1,846,446
2022
2021
1
1
44
37
Number
Number
45
38

19

The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd

Notes to the Consolidated Financial Statements (continued) for the year ended 31 March 2022

10 Expenditure on charitable activities
Governance costs (note 11)
Support costs (note 11)
Direct delivery
Central premises
IT support and consumables
Communications
Depreciation
Travel & subsistence
Irrecoverable VAT
Marketing
Bank interest and transaction charges
International relationships and support
Other costs		 -
665
665
9,159
20,610
29,769
18,008
2,452
1,421
3,873
4,184
1,661
5,845
-
56,983
56,983
3,466
23,498
13,624
37,122
11,556
5,004
16,560
64,386
30,627
95,013
Total
& Training
Services
2022
694,977
366,132
1,061,109
1,093,084
104,513
1,197,597
£
£
£
17,088
11,459
28,547
Education
Membership
2,772
694
9,004
9,004
2,554,557
1,932,160
622,397

Expenditure on charitable activities was £2,554,557 (2021: £2,014,188) of which £2,372,167 was unrestricted (2021: £1,753,955) and £182,390 was restricted (2021: £260,233).

11 Governance and support costs

Audit fee
Invoice
description
Salaries and related
costs
apportionment
Staff roles and
time allocation
Sundry
expenses
Invoice
description
Other professional and
legal fees
Invoice
description
Board running
costs
Invoice
description
Basis of		 Support costs
£
Total
Total
£
1,058,814
21,161
1,079,975
205
2,234
-
2,234
3,878
300
-
300
61
-
2,728
61
£
-
7,086
Governance
2022
2021
7,086
6,250
882,842
£
1,061,109
28,547
1,089,656
895,903

12 Staff costs, trustee remuneration and expenses, and the cost of key management personnel

The key management personnel of the group and the parent charity comprise the trustees and senior managers whose names are listed on page 8. Total remuneration and employee benefits for key management personnel amounted to £723,973 (2021: £708,029) including pension contributions of £50,488 (2021: £53,662). This includes one trustee, G McDonald (2021: one trustee - G McDonald) who received remuneration relating to their contract of employment with the charity or its subsidiary.

The number of employees earning more than £60,000 per annum (including related pension contributions) is:

Group Group Charity Charity
2022 2021 2022 2021
Between £60,001 and £70,000 1 1 - -
Between £70,001 and £80,000 - 2 - 1
Between £80,001 and £90,000 3 1 1 1
Between £90,001 and £100,000 3 2 2 1
Between £100,001 and £110,000 - 1 - -
Between £110,001 and £120,000 - 1 - 1
Between £120,001 and £130,000 1 - 1 -

20

The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd

Notes to the Consolidated Financial Statements (continued) for the year ended 31 March 2022

12 Staff costs, trustee remuneration and expenses, and the cost of key management personnel (cont'd)

During the year ended 31 March 2022 no trustee (2021: no trustee) received remuneration or benefits from the charity for acting as, or in connection with, their appointment as a trustee of the charity. During the year no non-executive trustees (2021: no trustees) were reimbursed expenses (2021: £nil).

13 Tangible fixed assets

Group
Cost
At 1 April 2021
Additions
Disposals
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the year
Disposals
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021
Charity
Cost
At 1 April 2021
Additions
Disposals
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the year
Disposals
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 -
Improvements
60,105
60,105
-
-
60,105
-
60,105
-
-
£
leasehold
to short
to property		 4,118
£
4,118
-
4,118
-
4,118
-
-
-
-
Fixtures and
fittings		 51,401
42,725
172,833
220,305
90,607
228,707
47,882
8,402
-
169,751
-
34,541
£
118,350
86,891
85,942
IT
infrastructure
138,100
3,082
-
177,580
-
£
IT
infrastructure		 equipment
15,794
-
14,680
-
2,581
£
4,587
3,120
12,674
10,174
69,700
1,114
-
Computer
10,093
11,978
72,347
-
7,527
60,369
9,331
79,874
equipment
£
Computer		 356,875
£
15,929
-
Total
372,804
57,213
-
167,317
224,530
148,274
189,558
Total
184,431
-
£
4,196
188,627
37,122
-
61,494
98,616
90,011
122,937

21

The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd

Notes to the Consolidated Financial Statements (continued) for the year ended 31 March 2022

14 Investments
Listed investments (managed portfolio)
Investment in subsidiaries
Investment in subsidiaries
Subsidiary company
Solace In Business Ltd,
Nature of business
Number, class and percentage of shares held
Net assets at 31 March 2022		 £
£
Charity
2022
2021
Group
2022
2021
£
£
62,034
62,034
158,546
155,988
-
-
158,546
155,988
158,546
155,988
220,580
218,022
registered in England & Wales (Company No. 3150254)
Interim placement and executive recruitment
19 ordinary
(100%)
£589,544

The activities and results of this subsidiary company are summarised in note 5.

Subsidiary company SEL Business Services Limited, registered in England & Wales (Co. No. 8704424) England & Wales (Co. No. 8704424) England & Wales (Co. No. 8704424)
Nature of business Dormant
Number, class and percentage of shares held 20 ordinary (100%)
Net assets at 31 March 2022 £20
Listed investments (managed portfolio) Total
£
Market value
At 1 April 2021 155,988
Additions 2,140
Revaluations 2,840
Management fees (2,422)
Reclassification / transfer -
At 31 March 2022 158,546
Net book value
At 31 March 2022 158,546
At 31 March 2021 155,988
There are no investment assets outside the UK
Group Charity
**15 ** Debtors 2022 2021 2022 2021
£ £ £ £
Trade debtors 1,096,658 872,389 203,805 107,158
Other debtors 6,634 - 523 -
Prepayments and accrued income 262,159 251,164 132,210 109,169
1,365,451 1,123,553 336,538 216,327
Group Charity
**16 ** Creditors 2022 2021 2022 2021
Amounts falling due within 1 year: £ £ £ £
Trade creditors 770,898 678,344 194,445 155,494
Other creditors 17,868 16,224 9,847 8,361
Corporation tax - - - -
Social security and other taxes 178,357 303,767 82,701 51,921
Amounts owed to group undertakings - - 3,235 9,258
Accruals and deferred income 789,675 741,089 498,212 495,938
1,756,798 1,739,424 788,440 720,972

22

The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd

Notes to the Consolidated Financial Statements (continued) for the year ended 31 March 2022

17 Provisions for liabilities and charges

The charity 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.

The trading subsidiary, Solace In Business Ltd, is not exempt from taxation (see note 5). Taxation for the year comprises current and deferred tax. Current tax is recognised at the amount of tax payable using the rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date, as set out below:

Provision has been made by the trading subsidiary, Solace In Business Ltd, against costs arising from the issue of break notices on two operating leases (land and buildings), included related dilapidations (see note 5).

Deferred tax
Exceptional costs relating to cessation of operating leases (note 5)
Accelerated capital allowances:
At 1 April 2021
Movement in year
At 31 March 2022		 Group
2022
2021
£
6,343
11,951
£
63,346
-
69,689
11,951
Deferred tax
£
11,951
(5,608)
6,343

18 Operating leases

As at 31 March 2022 commitments under non-cancellable operating leases were as follows:

Group
Due within one year
Due within two to five years
Due over 5 years
Charity
Due within one year
Due within two to five years
Due over 5 years		 -
2021
-
Other
Land &
-
Buildings
Land &
Buildings
2021
2022
-
-
6,242
£
-
-
£
-
£
£
15,475
6,242
-
Other
2022
6,242
-
-
21,717
Buildings
Other
Buildings
Land &
Land &
-
-
-
-
-
-
-
Other
2022
2022
2021
2021
-
-
-
-
-
£
£
£
£
-
-
-
-

19 Pensions schemes

Defined contribution pension scheme

The charitable group operates a defined contribution pension scheme for the benefit of all employees. Contributions to the scheme for the year ended 31 March 2022 amounted to £101,236 (2021: £93,737). This includes accrued contributions of £17,868 (2021: £16,224) included in other creditors (note 16).

23

The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd

Notes to the Consolidated Financial Statements (continued) for the year ended 31 March 2022

20 Funds
Unrestricted
General
Designated
Restricted
Managerial leadership
Coaching & Mentoring
Sector research
Skills training		 283,187
1,057,619
-
2022
2021
32,447
1,090,066
£
£
310,692
(27,505)
£
£
-
Balance at
Net incoming
Balance at
1 April
Resources
Transfers
31 March
-
1,368,311
4,942
1,373,253
-
44,007
-
44,007
-
75,000
-
75,000
168,000
42,360
-
210,360
173,150
(64,750)
-
108,400
96,617
-
437,767
341,150

Designated funds:

The directors have identified that certain unrestricted funds should be ring-fenced as follows:

Restricted funds:

Sufficient cash resources are held to enable each of the identified funds to be applied without any restrictions.

21 Analysis of Group net assets between funds

Funds balances at 31 March 2022 are
represented by:
Tangible fixed assets
Investments
Current assets
Creditors: amounts falling due within 1 year
Provisions for liabilities and charges		 (1,756,798)
-
-
(1,756,798)
Unrestricted
£
148,274
158,546
158,546
Designated
Restricted
Total
£
£
£
-
-
148,274
-
-
283,187
437,767
3,330,687
-
-
(69,689)
2,609,733
(69,689)
283,187
437,767
1,811,020
1,090,066

22 Capital commitments

Capital amounts contracted at 31 March 2022 but not provided for in these financial statements amounted to £nil for the group and charitable company (2021: £nil).

23 Related Party Transactions

During the year ended 31 March 2021 the charity received a gift aid distribution of £456,250 (2021: £510,000) from Solace In Business Ltd (note 5).

Other related party transactions made by the group during the year ended 31 March 2022 were:

24