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2023-03-31-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 2023

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

Consolidated financial statements for the year ended 31 March 2023

Contents

Report of the trustees 1 - 8
Auditors report 9 - 11
Consolidated Statement of Financial Activities 12
Consolidated Balance Sheet 13
Consolidated Statement of Cash Flows 14
Notes to the financial statements 15 - 23

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

Report of the Trustees for the year ended 31 March 2023

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 2023 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

The year to March 2023 saw the Solace group continue its path of steady, sustainable growth. A positive year commercially for the subsidiary company, Solace In Business, enabled the charity to expand its provision to the sector and support for individual members. The organisation has been transformed in the past few years with a growing capacity to make a recognisable impact on the health of the local government sector and success of its individual members.

Professional membership of Solace increased by 159, or over 10%, during 2022/23 giving more local government employees access to the support that Solace is able to provide. We have also worked positively with our strategic partners, including the Local Government Association, to build our and the sector's capacity, while our strong commercial success has ensured a stable financial foundation on which to build both our current provision and future ambitions.

Policy

Solace continues to act as an important source of local government insight for the national Government. Through Solace’s President and our policy leads, during the past year we were able to ensure local government’s professional voice was heard clearly as important decisions were being made in Whitehall. We also had ministers, shadow ministers and civil servants attending our policy board, which meets monthly and provides an important sounding board for stakeholders as well as each other.

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 2023

Achievements and performance (cont'd)

Engagement with Government resulted in over 200 meetings during the year, as well as over 500 meetings with other stakeholders. Engagement levels were maintained throughout the year and enabled us to influence 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 and national media. This enables us to create a wider influence and ensure that the professional voice of local government is still heard. Solace contributed 35 media articles across the year, as well as 110 press mentions.

Member Engagement

The Covid-19 pandemic has had a lasting impact on our events programme with a change in working patterns impacting face-to-face events. Although 2022/23 saw a significant increase in events attendance compared to the prior year with 1,625 attending face-to-face activity, these numbers remain below our historic highs set in the period before the pandemic. Commercial sponsorship income has recovered well and supports the long term viability of our events programme.

The support that Solace provides to individual members in their development has increased significantly in recent years. Last year we supported 232 individuals in coaching, organised action learning sets and facilitated appraisals and also ran tailored one-day in-house courses for 268 attendees.

Leadership development

The charity also supported the learning of 1,266 individuals (up from 966 in the previous year) as part of our organisational development activity across 51 organisations. Overall, our most significant leadership development programmes during the year included:

Recruitment support

Interim and permanent recruitment activity of the trading subsidiary, Solace In Business, in the year to March 2023 provided £600,000 (out of a total Solace In Business donation of £761,820) to help support Solace’s charitable aims - the largest donation ever made to the charity from that area of activity.

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. It also plays an important role supporting the local government sector's pipeline of future leaders by shaping elements of our leadership offer and helping ensure our overall activity is focused in areas where the sector requires additional support.

These non-financial benefits remain an important addition to the financial contribution which has enabled Solace 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).

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 2023

Public Benefit

The stated purpose of Solace is ' to help unleash the positive power of local government '. On that foundational premise, 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 in this Report of the Trustees.

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 continue to manage an investment portfolio on behalf of the charity. The portfolio was valued at £145,293 on 31 March 2023, which reflects a £13,278 loss on revaluation. In the year ended 31 March 2023 there was an overall £13,253 net decrease 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 2023 were
Available funds
At 31 March 2023 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.		 £
10,606,205
10,605,580
625
1,798,367
£ 1,184,156

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 £919,060 as at 31 March 2023) and a minimum of 3 months operating costs (£750,760 as at 31 March 2023). At £1,120,261 (note 21) the value of unrestricted reserves excluding designated funds as at 31 March 2023 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 2023

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 a recent 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 2023 meetings of the Solace group board and trading subsidiary board discussed and agreed priorities for the coming period alongside our long term objectives.

In the run up to, and during, Solace’s 50th anniversary year we will be reflecting on Solace’s role during the last fifty years of local government and also what the future might and should hold for us as an organisation. We will renew our strategic direction and set a course for the organisation that better supports our members and local government as a whole for the next fifty years.

In the meantime, the following organisational purpose, goals and priorities will provide a starting point for that work and guide our day-to-day activity for the next two years.

Future Plans: 2030 goals

Key priorities 2023-25

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

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 2023

Key priorities 2023-25 (cont'd)

Positively marking the organisation's 50th anniversary by celebrating the impact Solace and its members have had on local government over the past fifty years and reflecting on the sector's, and its leadership profession's, current strengths and challenges

2024 will mark fifty years since the establishment of the Society of Local Authority Chief Executives. Following the reorganisation of local government a year earlier, the creation of the Society was announced on January 25th. We will use this date as an opportunity to launch the anniversary year through a range of communications channels.

The first Solace AGM was held on 6th March 1974 and we will host our Annual Dinner on, or as close as possible, to that date, providing us with an opportunity to celebrate the past fifty years and the contribution that Solace and its members have made during that time. In 2022 we started to use the Annual Dinner to thank individuals retiring from senior council positions for their public service. The 50th Anniversary Dinner is an opportunity to develop that theme to a greater extent by celebrating contributions more widely, including those who have made significant contributions to the sector more generally.

While the Annual Dinner will celebrate the past fifty years, our drinks reception at the 2024 LGA Conference will be more contemporary and reflect the success and challenges of local government professionals today. This may include the publication of a ‘state of the profession and sector’ type report.

The 2024 Solace Summit will be a future-focused event and explore with the usual selection of high quality speakers from inside and outside of our sector - alongside facilitated discussions - how the next fifty years may develop for the future of the sector and profession.

Engage members in the future direction of Solace and how best we can support the sector and our members into the next fifty years

The anniversary year creates an opportunity for Solace and its members to reflect and discuss the past, present and future of the profession. But it also takes place at a time when a range of challenges are exposing weaknesses in the overall capacity and quality of the profession. Solace has long campaigned for greater emphasis on the professional development of local government leaders, the protection and enhancement of officers’ roles in the wider assurance system of the sector, and the need to attract greater numbers into the sector to ensure a strong and diverse pipeline of talent.

We will therefore use the next two years to further develop our thinking in this area. We have already started discussions with Government and the Local Government Association on developing a more comprehensive programme for Chief Executives using the Improvement Grant for England, building on research undertaken for our Leadership Academy project.

This creates a launchpad for wider engagement on the future of the Society and our role in the professional development of our members across the UK, which could deliver a new approach to be launched during the anniversary year. It will also be important that this work links to other work being done on improvement and assurance across the sector (e.g. following the LGA’s recent peer review).

Taking action to promote equalities and inclusion and ensure the local government workforce is more representative of those it serves

Our equality, diversity and inclusion project will continue to be a priority during the next two years. Significant progress has been made on a range of specific actions, but we know that significantly more is required including ensuring our approach threads through all Solace external activity and also internally with our employees and associates.

We have established an outcomes framework which will help raise the profile of our activity, measure progress and hold us and the sector to account. We have also started to publish data and are running our first AMPlify programme that specifically supports the development of diverse talent within local government. It is important that the momentum created is not lost and we will continue to prioritise this activity throughout the next two years.

Deliver high quality, aspirational support across all our individual services to help unleash the positive power of local government across the UK

While both marking the anniversary and reflecting on Solace’s future will take some of our focus, it remains crucial that we also prioritise maintaining and improving the high-quality services we provide to individual members, clients and the sector. It is only because we have steadily built the reputation of Solace to deliver effectively that we can influence Government, other sector stakeholders and individuals to achieve our long-term objectives. As well as maintaining our own standards, this includes working with the most challenged of councils to support them in navigating their journey in circumstance where other commercially focused organisations may not be so able, but also by being open and sharing the learning from those and other councils to develop the sector overall.

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 2023

Deliver high quality, aspirational support across all our individual services to help unleash the positive power of local government across the UK (cont'd)

We will therefore continue to closely monitor our service provision using the KPI approach that is tried and tested. This includes continuing to evolve the approach to ensure our measures and analysis is insightful, targeted and proportionate. Increased levels of engagement with members over the next two years also provides an opportunity to respond to feedback and adapt our approach in the short as well as longer term, to better suit our customers’ needs.

Strengthen Solace’s long-term future by maintaining a resilient, commercially viable, learning organisation across all services

While our pursuit of quality remains a priority, this is intertwined with the organisation’s financial stability. In recent years Solace has been able to strengthen its financial position significantly and create a context which has enabled us to ride the commercial challenges of the pandemic positively. The group's reserves and cashflow positions have also enabled choices and actions such as our investment in a programme manager to lead our diversity and inclusion activity. This approach will continue to ensure we are able to continue to make choices in the future.

But our resilience is not just financial and the Covid-19 pandemic in particular has demonstrated the importance of our workforce. They responded resourcefully and positively to the challenges and enabled us to navigate our way through that challenging period. Recruitment and retention remain the most significant risks to the business and we are responding by investing significantly more in training and development and more regularly and consistently engaging our employees. Our intended new office accommodation will be a significant step forward and provide an important arena for engagement and cross-working to take place.

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 7. 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.

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 2023

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 (2022: £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 nonexecutive 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:

Chair: G L Jones
Finance lead: A J Steven (appointed 13 October 2022)
Solicitor/Company Sec: D E Forrester-Brown
President: M V Prosser (appointed 1 January 2023)
SIB Chair: R E Hyde
Other elected non-executive directors:
S L Bridglalsingh (resigned 17 June 2022) A W Muter (resigned 13 October 2022)
J Burns C D Naylor
A M Donaghy (resigned 13 October 2022) D V Plank
S H Fitzgerald E Rogers
P R Frainer J L Roney
S K Hall (appointed 13 October 2022) J R Rowlands (resigned 16 June 2023)
A M Hill S L Sanders
N S A Hussain-Duke D R Thomas
R A L McKoy (appointed 13 October 2022) R G S Weaver (appointed 13 October 2022)
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

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 2023

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 22 September 2023

G L Jones Trustee

8

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 2023

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 2023 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:

9

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 2023

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:

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 2023

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

28 September 2023

11

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 2023

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
Loss on disposal of fixed assets
Net income / (expenditure)
before transfers
Gross transfers between funds
Net income / (expenditure)
before recognised gains / (losses)
Other recognised gains / (losses)
Net movement
in funds for the year
Reconciliation of funds
20
20
INCOME
EXPENDITURE
Cost of raising funds
Total income
Total funds c/fwd
Unrealised gains / (losses)
on investments
Total funds b/fwd
Total expenditure		 -
8,152,422
5,913
2,212,356
-
Funds
£
Unrestricted		 -
Funds
£
-
235,514
-
-
Restricted		 Total
Funds		 Unrestricted Restricted
Funds
£
-
279,007
-
-
-		 -
2,153,174
6,058,158
2,268
528
£
2022
Total
Funds
1,811,020
625
-
10,605,580
625
(12,653)
2,346
747,615
-
5,913
7,366,849
2,488,770
10,606,205
2,447,870
-
8,152,422
-
2023
£
1,798,367
(13,278)		 Funds
£
-
1,874,167
6,058,158
528
2,268
10,370,691 235,514 7,935,121 279,007 8,214,128
2,178,531
747,615
-
7,366,849
2,346		 -
-
-
-
310,239		 622,397
-
1,749,770
2,422
5,558,430		 -
-
182,390
-
-		 2,422
622,397
-
1,932,160
5,558,430
10,295,341 310,239 7,933,019 182,390 8,115,409
75,350
-		 (74,725)
-		 2,102
-		 -
96,617		 98,719
-
75,350
(13,278)		 (74,725)
-		 2,102
2,840		 96,617
-		 98,719
2,840
1,373,253
62,072		 437,767
(74,725)		 4,942
1,368,311		 96,617
341,150		 1,709,461
101,559
1,435,325 363,042 1,373,253 437,767 1,811,020

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 15 to 23 form an integral part of these financial statements.

12

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

Consolidated Balance Sheet as at 31 March 2023

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		 1,798,367
145,293
251,169
3,564,886
2,012,065
1,552,821
1,803,990
Group
£
105,876
2023
1,435,325
363,042
1,834,066
1,730,820
1,798,367
5,623		 158,546
1,365,451
1,573,889
Group
2022
306,820
1,756,798
3,330,687
1,880,709
69,689
148,274
£
1,373,253
1,811,020
437,767
1,965,236
1,811,020		 1,245,465
980,090
58,048
897,562
389,252
1,877,652
-
265,375
Charity
2023
£
1,488,400
207,327
882,423
1,245,465
363,042
1,245,465		 90,011
£
220,580
Charity
2022
310,591
1,424,817
336,538
1,761,355
788,440
972,915
1,283,506
-
1,283,506
845,739
437,767
1,283,506

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

22 September 2023 and signed on their behalf by:

G L Jones Trustee

The notes on pages 15 to 23 form an integral part of these financial statements.

13

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 2023

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		 (17,527)
2,346
(220,431)
3,542
(2,371)
(64,066)
(3,542)
(468,615)
-
255,267
-
(13,985)
-
1,965,236
(234,416)
1,730,820
13,278
Group
(12,653)
2023
£
59,925		 (15,929)
(10,700)
128
-
2,422
17,374
(241,898)
57,738
(2,840)
(2,140)
(128)
-
(15,801)
-
1,991,737
(26,501)
1,965,236
Group
101,559
2022
£
57,213		 (5,438)
2,346
67,114
1,907
(2,371)
(1,907)
(52,714)
-
-
109,122
-
(3,531)
1,488,400
-
1,424,817
63,583
Charity
13,278
2023
£
(38,041)
37,401		 2,422
(2,840)
(2,140)
(14)
-
(120,211)
-
37,122
67,468
Charity
2022
£
57,762
39,569
(4,196)
14
-
(4,182)
-
1,389,430
35,387
1,424,817

14

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 2023

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 2024 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

15

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 2023

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 other board, authority or committee exercising local government or public service 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.

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 2023

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
£
-
761,820
Restricted
Funds
£
-
-
4,278
2,212,356
-
235,514
-
-
Total
2023
2022
£
£
2,154
4,278
-
-
2,447,870
2,153,174
761,820
456,250
-
323		 Total
Unrestricted
Funds
£
-
761,820
Restricted
Funds
£
-
-
4,278
2,212,356
-
235,514
-
-
Total
2023
2022
£
£
2,154
4,278
-
-
2,447,870
2,153,174
761,820
456,250
-
323
(2,926,146)
(2,554,557)
(2,346)
(310,239)
2,978,454
(2,346)
235,514
(3,236,385)
3,213,968
2,611,901
(2,422)
-
49,962
(13,278)
845,739
(74,725)
-
437,767
1,283,506
1,225,744
(13,278)
2,840
54,922
(24,763)
882,423
363,042		 1,283,506

1,245,465
483,264
1,729,092
177,500
58,014
£
£
Unrestricted
Restricted		 363,042
437,767
845,739
882,423
1,245,465
1,283,506


1,906,592
1,798,887
354,287
541,278
£
Total
£
Total
2023
2022
Funds
Funds
2,212,356
235,514		 2,447,870
2,153,174

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		 6,058,158
(7,374,036)
(5,506,764)
2023
2022
£
1,635
114
£
8,152,422
6,467
(63,346)
-
205
786,488
488,367
720
11,680
787,208
500,047
(761,820)
(456,250)
25,388
43,797

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 2023

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 (note 17)
Total net assets		 47,848
58,283
1,692,787
1,572,563
(1,120,080)
(971,613)
£
£
2022
2023
(69,689)
(5,623)
614,932
589,544

The financial performance of the subsidiary for the year ended 31 March 2022 included 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 therefore at that year end date provided for expected costs relating to the cessation of those leases including related dilapidations works. All related costs were fully accounted for during the year ended 31 March 2023 with £6,467 of the provision unused and reversed during that period (note 17).

6 Government grants
Coronavirus Job Retention Scheme
Other government grants		 -
426
Total
Total
2023
2022
-
102
£
£
-
528

Coronavirus Job Retention Scheme grant was received for the purpose of paying staff who were furloughed because of the impact of Covid-19. There are no unfulfilled conditions or contingencies attaching to receipt of that grant.

Other government grants related 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		 £
2,371
2,140
3,542
128
£
2023
2022
5,913
2,268
2023
2022
2,422
2,346
£
£
2023
2022
£
£
1,779,099
1,599,888
179,232
145,322
114,987
101,236
1,846,446
2,073,318
2023
2022
1
1
45
44
Number
Number
46
45

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 2023

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		 -
23,123
23,123
14,033
39,079
53,112
23,721
2,381
882
3,263
8,305
4,771
13,076
57,110
8,131
65,241
6,122
27,292
10,110
37,402
6,615
10,082
16,697
78,922
25,555
104,477
Total
& Training
Services
2023
885,743
403,671
1,289,414
1,363,977
190,584
1,554,561
£
£
£
29,278
16,898
46,176
Education
Membership
5,001
1,121
10,113
13,608
3,236,385
2,488,770
747,615

Expenditure on charitable activities was £3,236,385 (2022: £2,554,557) of which £2,926,146 was unrestricted (2022: £2,372,167) and £310,239 was restricted (2022: £182,390).

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
£
1,281,497
26,951
1,308,448
300
7,856
-
7,856
2,234
561
-
561
61
10,150
61
10,211
£
-
8,514
Governance
2023
2022
8,514
7,086
1,079,975
£
1,289,414
46,176
1,335,590
1,089,656

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 7. Total remuneration and employee benefits for key management personnel amounted to £749,146 (2022: £723,973) including pension contributions of £56,414 (2022: £50,488). This includes one trustee, G McDonald (2022: 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
2023 2022 2023 2022
Between £60,001 and £70,000 - 1 - -
Between £70,001 and £80,000 1 - - -
Between £80,001 and £90,000 3 3 1 1
Between £90,001 and £100,000 2 3 2 2
Between £100,001 and £110,000 1 - - -
Between £110,001 and £120,000 - - - -
Between £120,001 and £130,000 1 1 1 1

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 2023

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

During the year ended 31 March 2023 no trustee (2022: 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 three nonexecutive trustees (2022: no trustees) were reimbursed expenses totalling £11,138 (2022: £nil) including £10,794 (2022: £nil) relating to representing the organisation at international partner events.

13 Tangible fixed assets

Group
Cost
At 1 April 2022
Additions
Transfers
Disposals
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
Transfers
Disposals
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022
Charity
Cost
At 1 April 2022
Additions
Disposals
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
Disposals
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 -
-
(60,105)
60,105
(60,105)
-
-
-
-
Improvements
£
leasehold
to short
60,105
-
-
to property		 -
-
fittings
(4,118)
-
-
(4,118)
4,118
-
4,118
-
-
-
Fixtures and
£		 228,707
-
IT
infrastructure
85,942
172,833
157,407
244,907
50,600
(12,204)
90,607
172,833
-
34,540
£
86,891
52,351
120,482
IT
infrastructure
87,500
-
-
138,100
28,404
28,404
(12,204)
£		 (25,901)
equipment
17,527
11,867
(25,901)
69,700
9,325
15,794
(9,365)
2,861
£
3,120
5,697
6,170
18,376
24,720
5,438
(9,365)
Computer
12,674
10,174
(28,404)
(28,404)
equipment
79,874
£
Computer
43,096		 £
17,527
(102,328)
-
Total
372,804
288,003
59,925
(102,328)
224,530
-
182,127
105,876
148,274
Total
188,627
(9,365)
£
5,438
184,700
37,401
(9,365)
98,616
126,652
58,048
90,011

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 2023

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 2023		 £
£
Charity
2023
2022
Group
2023
2022
£
£
62,034
62,034
145,293
158,546
-
-
145,293
158,546
145,293
158,546
207,327
220,580
registered in England & Wales (Company No. 3150254)
Interim placement and executive recruitment
19 ordinary
(100%)
£614,932

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) Limited, registered in England & Wales (Co. No. 8704424)
Nature of business Dormant
Number, class and percentage of shares held 20 ordinary (100%)
Net assets at 31 March 2023 £20
Listed investments (managed portfolio) Total
£
Market value
At 1 April 2022 158,546
Additions 2,371
Revaluations (13,278)
Management fees (2,346)
Reclassification / transfer -
At 31 March 2023 145,293
Net book value
At 31 March 2023 145,293
At 31 March 2022 158,546
There are no investment assets outside the UK
15 Debtors
Trade debtors
Other debtors
Prepayments and accrued income
16 Creditors
Amounts falling due within 1 year:
Trade creditors
Other creditors
Corporation tax
Social security and other taxes
Amounts owed to group undertakings
Accruals and deferred income		 132,210
Group
145,971
477,715
1,096,658
6,634
242,963
318
2023
2022
262,159
1,356,033
£
£
318
2022
£
£
Charity
2023
203,805
523
1,834,066
1,365,451
389,252
336,538
144,288
194,445
19,806
17,868
11,313
9,847
-
-
5,557
3,235
1,057,904
789,675
644,381
498,212
2022
2023
2022
£
£
£
£
Group
Charity
2023
-
-
-
-
258,065
178,357
92,023
82,701
676,290
770,898
2,012,065
1,756,798
897,562
788,440

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 2023

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:

Deferred tax (accelerated capital allowances)
Exceptional costs relating to cessation of operating leases (note 5)
At 1 April 2022
Movement in year
Utilised during year
Unused amounts reversed during year
At 31 March 2023		 Group
2023
2022
£
5,623
6,343
£
-

63,346
5,623
69,689
Deferred tax
£
6,343
Exceptional
costs
(56,879)
(720)
£
63,346
-
(6,467)
5,623
-

18 Operating leases

As at 31 March 2023 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		 -
2022
-
Other
Land &
-
Buildings
Land &
Buildings
2022
2023
-
-
-
£
-
-
£
-
£
£
6,242
-
-
Other
2023
-
-
-
6,242
Buildings
Other
Buildings
Land &
Land &
-
-
-
-
-
-
-
Other
2023
2023
2022
2022
-
-
-
-
-
£
£
£
£
-
-
-
-

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 2023 amounted to £114,987 (2022: £101,236). This includes accrued contributions of £19,806 (2022: £17,868) included in other creditors (note 16).

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 2023

20 Funds
Unrestricted
General
Designated
Restricted
Managerial leadership
Coaching & Mentoring
Sector research
Skills training		 1 April
Resources
Transfers
31 March
1,090,066
2023
2022
£
£
£
£
30,195
315,064
-
Balance at
Net incoming
Balance at
1,120,261
283,187
31,877
-
1,373,253
62,072
1,435,325
-
44,007
(260)
-
43,747
75,000
(40,510)
-
34,490
(4,155)
-
206,205
108,400
(29,800)
-
78,600
210,360
(74,725)
-
363,042
437,767

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 2023 are
represented by:
Tangible fixed assets
Investments
Current assets
Creditors: amounts falling due within 1 year
Provisions for liabilities and charges		 (2,012,065)
-
-
(2,012,065)
Unrestricted
£
105,876
145,293
145,293
Designated
Restricted
Total
£
£
£
-
-
105,876
-
-
315,064
363,042
3,564,886
-
-
(5,623)
2,886,780
(5,623)
1,120,261
315,064
363,042
1,798,367

22 Capital commitments

Capital amounts contracted at 31 March 2023 but not provided for in these financial statements amounted to £nil for the group and charitable company (2022: £nil).

23 Related Party Transactions

During the year ended 31 March 2023 the charity received a gift aid distribution of £761,820 (2022: £456,250) from Solace In Business Ltd (note 5).

Other related party transactions made by the charity during the year ended 31 March 2023 were:

23