Registered charity number: 1084419 Company nurnber (registered in England &Walesl: 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 2024
The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd Consolldat¢d financial statements for the year ended 31 March 2024 Contsnts Report of the trustees 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 Trustses for the year ended 31 March 2024 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 2024 which are also prepared lo meet the requirements for a directors, report and accounts for Companies Act Pltrposes. The financial slalements 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 wth the Financial Reporting Standard applicable in the UK and Republic of Iland IFRS102} {effective l January 2019). Objectives and activities Obj•¢ts The objects of the charity are. To promote any charitable purpose in particubar the relief of poverty, sickness end distress. the advancement of education, the preSeallOn and protection of health, the provision of public works and services and public amenities and facilities for recreabon or other leisure lime occupation in the intere51s of social welfare. particularly through the promotion of efficiency and good practice in local govemment., The charity's goveming documents pemil il to do anyihing lawful that is deemed necessary lo promote ils objects, indudin9 (inter alial.. 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 refom as may assist the charitls objects., and, entering into any arrangements with any governments, authorities or any person, company or association neSSary to pmmote any ofthe charitws objects. Aims and purpose Strategic aims of the charity are focused on= providing opportunities for local public Service leaders lo learn. develop and to network wth each other and with conterllporaries from other areas of public life., influencing debates about the future of public services. to ensu that poli¢y is infomied by the experience and expertise of our members., building the integrity and reputation of public service management., and supporting local public services to recruit and place the brightest and best lo their leadership roles. The Solace group's purpose is.. to enable places to thrive by releasing the power and voice of people working in local public seNices AchieMents and perf0mnCe The year to March 2024 saw the Solace group continue its path of Steady, sustainable growth wth revenue llsing lo over £11 million. Another positive year commercially for the s4Jbsidi8ry company, Solace In Business, eonlributed to the charity's expansion of provision to the sector and ils support for individual members. The organisation has been transfomied in the past few years with a growing capacity to make a recognisable impact on the health of the local govemment sector and the success of individual members. Professional membership of Solace increased by 218, or 13Vo, during 2023124 giving more local govemment employees access lo the support that Solace is able to provide. We have also worked positively with our strategic partners, including the Local Govemment Association, to build our and the sectorfs capacity, while our strong commercial success has ensured a stable financial foundation on which to build both our ¢utYent 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, dsjring the past year we were able to ensure local govemment's professional voice was heard c5earfy as important decisions were being made in )Miitehall. We also had ministers. shadow mini51ers and civil servants attending our policy board, which meets monthly and providès an important sounding board for stakeholders as well as each other.
The Society of Local Authority Chief Executives and Senior Managers {Solace Group) Ltd Report of the Trustees Icontinuedl for the year ended 31 March 2024 Achievements and perf0Mnce {cont'dl Engagement with Govemment sUIted in over 150 meetings during the year, as well as over 500 meetings with other stakeholders. Engagement levels were maintained throughout Ihe year and enabled us to influence Govemrnent and other key stakeholders on longer term issues, as well as on the immediate response to critical issues as they emerged. Simultaneously, Solace still regulady contributed within sector and national media. This enables us lo create a wider influence and ensure that the professional voice of local govemment is still heard. Solace contributed over 30 media articles across the year, as well as 132 press mentions. Member Engagement The year ended March 2024 saw a significant increase in events attendance compared lo the prior year wth 2,209 attending face-to-face activity, an increase of 350/0 on 2022123 attendance. Commercial sponsorship income has similady recovered well since the impact of Covid-19 on our activities and supports the long term viability of our events programme. The support that Solace provides to individual rnembers in their development has increased significantly in recent years. During 2023124 we supported 256 individuals in coachin9, organised action leaming sets and facilitated appraisals and also ran tailored one-day in-house courses for 294 attendees. Le8dership development The charity also supported the leaming of 1,226 individuals as part of OLtr organisational development activity across 64 organisalions lup from 51 organisations in the prior year). Overall, our most significant teadership development programmes during the year included.. development of a new council Chief Executive programme in conjunction wth the Local Govemment Association, th three modules successfully piloted and evaluated to support the Case for funding for the programme during 2024125. Growth of our AMPlify programme aimed al empowering a diversity of senior managers and leaders across our sector to progress in their careers, ensunng they can flourish and that their abilities are recognised and nurtured in their councils. Continued delivery of the national graduate development programme. which introduces high quality graduates lo a career in local government. The eleventh year of our Springboard programme for talented aspiring leaders from across the UK. The ninth year of Total Leadership, an innovative partnership between Solace and the University of Birmingham bringing the best of academic rigor together with practical hands-on experience to creale a career defining leaming experience for Executive Leaders. Further cohorts of our Ignite progrdmme for experienced council chief executives. Continued expansion of our accredited public management and leadership programmes, including an Msc and apprenticeship programmes delivered in partnership with the University of Birmingham. Recrnitmènt support The charity's trading subsidiary, Solace In Business, in the year to Mar¢h 2024 provided £673,910 to help support the charitable aims of Solace. This includes support from our valued Business Partners, but most significantly the tumS from interim ¢ruItment, executive search and consultancy activity which is carried out on a 'profit-for-purpose' basis. DLFring 2023124 this activity included around 100 permanent recruilmenls to the most senior roles in the sector a5 well as having an extensive team of interim contractors and associates working across 78 different local authoritie5 UK-wde. Key performance indi¢ators In addition to detailed management accounts. a range of indicators are used by the Iruslees and executive management to monitor and direct activilies as appropriate. These in¢lude monthly reporting and discussion of key opera*ional and impact measures for each area of the group, refreshed annually as part of the business planning and budgeting process dependent on the agreed focu5 for each area for the relevant period(sl. Examples include: income and margins,. sickness absence.. membership renewals and additions; number of leamers supported., number of organisations worked wlh,. conversion rates for tendered activity,. associates utilisation., customer satisfaction.. and, website and social media perfomance (viewings, click throughs and interactions).
The Society of Loeal Authority Chief Executives and Senior Managers (Solace Group) Ltd Report of the Trustees (continued) for the year ended 31 March 2024 Public Benefit The stated purpose of Solace is 'to help unleaslj the positive power of local government, On that foundational prnIse, the aims and activity of the charity provide benefits lo the public through a variety of means, including.. the promotion of efficiency and good practice in local govemment to facilitate better provision of public works, services and amenities in the interests of social welfare., the promotion of knowledge, skills and competence amongst its members- being individuals tholly or mainly employed as local authority chief executives and senior managers., and promoting the cause of local govemmenl, including padiamentary lobbying and inff uence on policy discussions and decision-making. These benefits have this year been primanly o¢hieved through the achievements, perfomiance and activities highlighted in this Report of the TTuslees. In the furtherance of these aims the directors have complied with the duty in s.4 of the Charities Act 201110 have due regard to the Charity Commission's published general and relevant sub-sector guidance conceming the operation of the public benefit requirements under that Act. Financial Review Inveslmènt 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 tteld in a mixture of medium lo high risk investment portfolios. Financial gains from Ihe current investments are automatically reinvested. Investrnent perfomianee Evelyn Partners continue lo manage an investment portfolio on behalf of the charity. The portfolio was valued at £157,496 on 31 March 2024, which includes an £11,900 gain on revaluation. In the year ended 31 March 2024 the was an overall £12,203 net increase in funds after investrnenl management charge5 Inole 131. Whilst funds are invested in medium to high risk portfolios the investment manager has advised that 'lhe 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" R0suIts for the year Full details of the financial transactions are contained in the attached financial stalemenls. Total income for the year was After deducting expenditu of The net income l {exp8nditurel before recognised gains I (losses) wa$ The nel assets of the charitable groLtp at 31 March 2024 were Available funds 11,274,168 11,333,677 1 750 758 Al 31 March 2024 the charity had freely available reserves fof ils general purposes amounting to This comprises the balance in unrestricted funds, excluding langible fixed assels and investments. Reserves Policy The charity's reserves policy is based on the value of unrestricted reseNes excluding designated funds, wth a target of covering 6 months operating Costs Icalculaled lo be £929,350 as al 31 March 2024) and a minimum of 3 months opemling costs {£753,100 as at 31 March 20241. AI £1,050,376 Inole 211 the value of unreslri¢ted reserves excluding designated funds as at 31 March 2024 compares favourably to the stated target SerVeS level. In the event that future circumstances require it, currently designated funds may be undesignated in order to address required needs. Risks 8nd uncertainties £1027850 Trustees have a duly to identify and review risks to lch the charity is exposed and ensure appropriate controls are in place, including the provision of 8$Onable assurance against fraud and error. The Iruslees therefore closely monitor the operations of the charrty and ils trading subsidiary and review on a regular basi5 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 intemal controls and their ongoing suitability.
The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd Report of the Trustees {¢ontinued) for the year ended 31 March 2024 Risks and un¢ertaintlos (cont'dj Governmenl policy changes relating to andlor affecting the public sector are considered to be the principal risks and uncertainties. These are primarily dealt wlh by slaying close lo the sector and through active engagement in policy discussions, as already ferenCed earfier in this report. Proactive, effective engagement with Ouf members, partners and sector interest groups provides up-to-dale intelligence which allows potential issues lo 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 organisalion. including specific operational and cost changes as necessary. Flnancl81 rlsk management The charity and ils subsidiary use financial instrument5 comprising cash and debtors. Their main purpose is to finance the WO[*ing Capital cycle of the group. Policies for managing financial risks Open lo the group are". Price risk A range of suppliers a 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. Customers are largely public sector organisalions vtho by their nature are considered 'low risk.. Many are long-standing customers. Effective credit management procedures are also in place. Returns on cash are maximised through utilising a range of interest bearing bank accounts. A range of bank accounts are used which enable access to funds in line with cash flow projections and to meet financial obligations as and when they fall due. In the event that ils operating cash flows do not cover all financial obligations at a specific point in time, Solace In BuSnesS Ltd la wholly owned subsidiary) is able to access arranged overdraft facilities. Group companies have a good relationship with their bankers. Credit risk Interest risk Liquidity risk Future Plans In April 2024 a meeting of the Solace group board discussed and re-confimed priorities for the coming year. 2024 sees the 50th anniversary of Solace in one guise or another so during the year we will be reflecting oft the role and impact of the charity and its predecessors during the last fifty years of local govemment and also what the future might and should hold for us a$ an organisalion. We will renew our strategic direction and set a course for the organisation that better supports our members and local govemment as a whole for the nexi fity years. During 2024125 continued focu5 on the followng organisational purpose. goals and priorities aged in March 2023 as part gf a two-year plan will guide our day-towday activity. I Future Plans.. 2030 goals Sel the standard for the leaming and development of professional leaders and managers in UK local govemment Be the influential voice in the UK for professional local govemment Be the go-lo service for local govemmenl's talent management and leadership solutions Key priorities ft)r 2024125 Over the final year of our Current business plan the goals set out above will be pursued by continuing to focus on the following are8S'. Positively marking the organisation's 50th anniversary by celebrating Ihe impact Solace and ils members have had on local government over the past fifty years and reflecting on the secloff s, and its leadership profession's, current strengths and challenges Engage members in the futu direction of Sola¢e and how best we can support the sector and our members into the nexi fifty years Taking action to promote equalities and inclusion and ensure the local govemment workforce is more representative of those il serves Deliver high quality, aspirational SUPFX)rt across all our individual setvices to help unleash the positive power of local government across the UK Strengthen Solace's loterni future by maintaining a resilient, commercially viable, learning organisation across all services
The Society of Local Authorty Chief Executives and Senior Managers {Solace Group) Ltd Report of the Trustees Icontinuedl for the year ended 31 March 2024 Kgypriorifyes for 2024125 (¢ontd) Positively marking the organi$ation& 50th anniversary by celebrating the impact Solace and its membets Imve had on local government over the past fiftyyears and reffe¢ting on the se¢torfs. and its leadership professions, current str¢ngths and challenges The first Solace AGM was held on 6th March 1974 and we hosted our 2024 Annual Dinner shortly after the anniversary date, which provided us wth an opportLJnity to celebrate the past fifty years and the contribution that Solace and ils members have made during that time. The dinner was also an opportunity to ¢elebrale all those who have made significant contributions to the sector MO generally. The 2024 Solace Summit will be a fulure-focused event and explore with the usual selection of high quality speakers from inside and outside of our sector- alongside facilitated discussions - how the nexi fifty years may develop for the future of the sector and profession. Engage membets in the future direction of Solace and how best we can support tho sector and our membern into the next rrfty yea The anniversary year creates an opportunity for Solace and its members to reflect and discuss the past, present and fvlure of the profession. Bul il also takes place al 8 lime 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 attrnct greater numbers into the sector to ensure a strong and diverse pipeline of talent. We wsll therefore use the year to further develop our thinking in this aa. We have already started working with Govemment and the Local Govemmenl Association and piloted a MO 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 wder engagemenl 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 wll also be important that this work links lo other work being done on improvement and assurance across the sector. Taking action to promote equalities and inclusion and ensure the local goverrnnent workforce is mo rgpresertatlve of those it serves Our equality, diversity and inclusion project will continue to be a priority. Significant progress has been made on a ran9e of specific actions. but we know thal significantly more is required including enssjring our approach threads through all Solace extemal activity and also internally with our employee$ and associates.L, 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 lo publish data and are running our 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 priorilise this a¢tivity in the years ahead. Deliver hlgh quality, aspirational support across all our individual seThices to help unleash the positive power of local government across the UK While both matl(ing the anniversary and reflecting on Solace's future will take some of our focus, it remains crucial that we also priorilise maintaining and improving the high-qualrty services we provide to individual members. clients and the sector. 11 is only because we have steadily built the reputation of Solace lo deliver effectively that we can influence Government, other sector stakeholders and individuals to achieve our lon*teTh objectives. As well as maintaining our own standards. this includes working with the most challenged of councils to support them in navigating theirjoumey 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 lo develop the sector overall. We wll therefore continue to closety monitor our service provision using the KPI approach that is tried and tested. This includes continuing lo evolve Ihe approach to ensure our measures and analysis are insightful, targeted and proportionate. Increased levels of engagement with members also provides an opportunity lo respond to feedback and adapt Ouf approach in the short as well as longer temi, to better suit our customers needs.
The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd Report of the Trustees (continued) for the year ended 31 Mar¢h 2024 Strengthen Sola¢e'$ long-temT future by m8lntalnlng a resilient, commercially viab10. lèarning organisation across 811 serwi¢es Vvhile our pursuit of quality remains a priority, this is inleth.ned with the organisation's financial stability. In recent years Solace has been able lo strengthen its financial position significantly and creale a context which has enabled us to ride commercial challenges 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 prioity and approach wll continue lo ensure we are able lo continue lo make choices in the future. Bul 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 challefjges and enabled u5 to navigate our way through that challenging period. Recruitment and retention remain the most significant risks lo the business and we are responding by investing significanlty rn0 in training and development and more regularly and consistently engaging our employees. Our new office accommodation has been a significant step foward and provides an important an8 for engagement and cross-working to take place. Structure, Governance and Management Governing document The charity is controlled by its governing document la deed of trust dated 9 January 19861, and conslitLtles a company limited by guarantee (incorporated in England & Wales). 1115 govemed by Memorandum and Articles of Assorialion whiGh were last amended and ratified by the company in general meeting on 17 October 2018. Organlsational 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 organisalionol strategy and business plans and to review operational and financial perfomance. When ¢arying out their govemance 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 detemined 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. Thlrd party indemnityprovision for dlrectors The charity has third paty 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 liabilitie5 and respOnsiblitIeS 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. Dlsablllty and equality policy All applicants for positions with the charity are given full and fair consideration. Employmenl, training and general policies are applied equally to all affected individuals. Pay policy for5eniorstaff The directors consider that the board of directors (who are the charitls 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. All non-executive directors give of their time freely in that capacity and no director received remuneratiori during the year {2023.. £nill in connection th their appointment or duties as a director of the charity. Detsils of directors, expenses a provided in note 1110 the financial statements.
The Society of Local Authority Chief Execulives and Senior Managers (Solace Group) Ltd Report of the Trustees (continued) for the year ended 31 March 2024 Paypolicy forseniorstaff (cont'dj Staff pay is reviewed annually. Recommendations relating to senior staff and executive directors are conSided by the non4xeculive 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 measL*res and public sector pay awards. Market rates for comparable roles are a150 periodically considered, particularly as part of recruitment 8¢tivities. Directors and trustèes 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 ISola¢e Group) Ltd Specified elected roles.. Chair.. Finance lead.. Solicitor/Company Secretary.. President.. SIB Chair.. G L Jones A J Steven RALMeKoy M V Prosser REHyde Other elected noTrexe¢utiVo directors.. J Burns GKDoe C Elliott S H Fitzgerald D E Forresler-Brown (resigned 19 October 2023) P R Frainer S J Gamer SKHall S P Hanson AMHill N S A Hussain-Duke B M K Maryoram C D Naylor D V Plank E Rogers J L Roney J R Rowlands S L Sanders D R Thomas R G S Weaver (appointed 7 November 2023) (appointed 1 November 2023) (appoint8d l November 2023) (appointed 1 November 2023) (ftsigned 16 June 2023) (resigned 19 October 2023) (appointed 1 November 2023) Employed executive dffrector.. 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 Corporate Resources S R P Chambers Direclor of Engagement J A Howarth Director of Leaming T l Bifftll Director of Policy, Partnerships & Public Affairs A J B Thomson Key management personnel: Business Development Director Director of Executive Resourcing & Assessment Director of Interim Management Senior managers of Solace In Business Ltd T J McDougall S J Guest J K Mullinger Our advisers Auditors SMH Jolliffe Cork Audrt Ltd, 33 George Street, Wakefield WF1 1LX Lloyds Bank plc, 27-31 White Hart Stet, High ¢0mbe, HP112HL National Westminster Bank Plc, 23 Uplands Crescent, Swansea SA2 OMY Bankers
The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd Report of the Trustees (continued) for the year ended 31 March 2024 Reference and admFnistrative details Company number Charity number Registered office 4053417 1084419 Ground Floor, 2 Red Hall Court Wakefield West Yorkshire WF12UN Trustees, responsbbilities in relation to the finan¢ial statements The charity trustees (who are also the directors of rhe Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd for the purposes of company lawl are responsible for preparing a trustees, annual report and financial statements in accordance wlh applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the charity trustees to prepare financial statement5 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 Ihe financial statements, the trustees are required to.. select suitable accounting policies and then apply them consistently., observe the methods and principles in the Charities SORP., make judgements and estimates that are reasonable and prudent- slate whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial stalements., prepare the financial slalemenls on the 90ing concem basis unless it is inappropriate lo presume that the eharily will continue in business. The tnjstees are respollsible for keeping proper accounting records that disclose wth reasonable accuracy at any lime the rinancial position of the charity and to enable them to ensure that the financial ststemenls compty with the Companies Act 2006. They are also responsible for safeguarding Ihe 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 ¢orporate and financial infomation included on the charitable companys website. Legislation in the United Kingdom governing the preparation and dissemination of financial slalements may differ from legislation in olherjurisdiclion5. Statement as to disclosure of information to the auditor In so far as the trustees are awa at the lime of approving the trustees, annual report.. there is no relevant information, being inforniation needed by the auditor in connection with preparing their report, of which the group's auditor is unaware, and the Iruslees, having made enquiries of fellow directors and the group's auditor that they ought lo have individualty taken, have each taken all steps that helshe is obliged to take as a director in order to make themselves aware of any relevant audit information and lo establish that the auditor is aware of that information. Signed on ehalf of the trustees on 20 September 2024 G L Jones Tru51ee
Independent Auditorfs Report to the Members and Trustees of The Society of Local Authortty Chief Executives and Senior Managers (Solace Group) Ltd for the year ended 31 March 2024 Opinion on financial slatements We have audited the financial statements of The Society of Local Authonly Chief Executives and Senior Managers {Sola¢e Group) Ltd for the year ended 31 March 2024 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 applicable18w 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 finaneial slatemenls.. give a true and fair view of the slate of the group's and the parent ¢harFtable company's affairs as at 31 March 2024. and of the group's incoming resources and application of resources. including its income and expenditure, for the year then ended., have been propedy prepared in accordance wth United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI {ISAs IUKII and applicable law. Our responsibilities under those standards are further described in the Audilorfs responsibilities for the audit of the financial slalemenls section of our pOrt. We are independent of the charitable company in accordance with the ethical requirements that are felevant lo our audit of the financial slalements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance wth 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 slalements, we have concluded that the tNstees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfomied, we have not identified any material uncertainties relating lo events or conditions that, individually or collectively, may case significant doubl on the group's and the parent charitable company'5 ability to continue as a going concern for a period of at least twelve months from en the financial statements ar8 authorised for issue. Our responsibilities and the responsibilities of the trustees th respect to going concem are described in the relevant sections of this reF)Ort. Other information The trustees are responsible for the other information. The other infomiation comprises the infornalion included in the Iruslees, annual report, other than the financial statements and our auditorfs report thereon. Our opinion on the financial slalements does not cover Ihe other information and, except to the extent otherwise explicitly slated 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 infomTrtion and, in doing so, consider whether the Other infomi8tion is materially inconsistent wth the financial slalements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misslalemenls, 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 perfomied. we conclude that there is a mal8rial misstatement of this other information, we are required to report that fact. We have nothing lo report in this regard. Opinion on other matter prescribed by the Companies A¢t 2006 In our opinion. based on the work undertaken in the course of the audit.. the infomiation given the Irustees, report (incorporating the directors. report prepared for the purp)ses of cornpany lawl for the financial year for which the financial slalemenls are prepared is consistent with the financial statements.. and the directors. report included wthin the trustees. report has been prepad in accordance wlh applicable legal requirements.
Independent Auditor's Report to the Members and Trustees of The Society of Local Authority Chief Executives and Senior Managers ISola¢e Group) Ltd (continuad) for the year ended 31 March 2024 Matters on which we are required to report by exception In light of our knOedge and understanding of the group and parent charitable company and ils environment obtained in the course of the audit. we have not identified material misslalements in the trustees, report. We have nothing lo port in respect of the following matters ere the Companies Act 2006 requires us to pOrt to you if, in our opinion.. the parent charitable Company has not kept adequate and sufficient accounting records, or lUMS adequate for our audit have not been received from branches not visited by us., or the parent charitable companls financial statements are not in agreement with the accounting records and retums.. or certain disclosures of Injslees, rerlluneration specified by law are not made- or we have not received all the information and explanations we require for our audit., or the trustees were not entiued to prepare the financial stalements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the directors report and from the requirement to prepare a strategic report. Responsibilities of trustees As explained more fully in the Iruslees, responsibilities slalement, the Iruslees (who are also the directors of the charitable company for the ptjrposes 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 intemal control as the tNslees delem)ine is necessary to enable the pParatIOn of financial statements that are free from material misstatement, whether due lo fraud or error. In preparing the financial statements, the trustees are responsible for assessing the group and parent charitable company's ability lo continue as a going concem, disclosing, as applicable, matter5 related lo going concem and using the going concern basis of accounting unless the trustees either intend lo liquidate the group or the parent charitable company or lo cease operations. or have no realistic alternative bul to do so. Auditorfs 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 eOr, and to issue an audilorfs 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 a5ways delect a material misslalemenl 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 statement$. Irregularities, including fraud, are instances of non-cornpliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent lo which our procedures are capable of delecling irregularities, including fraud is detailed below.. The extent to which the audit was considered capable of detecting irregulariti9$ including fraud Our approach to identrfying and assessing the risks of material misstalemenls in respect of irregularities. including fraud and non4ompliance with laws and regulations, was as follows.. the engagement partner ensured that the engagement team collectively had the appropriate competence. capabilities and skills to identify or recognise non-compliance with applicable laws and regulations- we identified the laws and regulations applicable to the group through discussions with the trustees and other infomed management which we considered may have a direct material effect on the financial statements or the operations of the group and thereafter, the audit team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by.. making enquiries of management as to where they considered there was susceptibility lo fraud, their knowledge of actual, suspected and alleged fraud and considered the inlemal controls in place to mitigate risks of fraud and non- compliance wth laws and regulations. 10
Independent Auditor's Report lo 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 2024 The extent to which the audit was considered capable of detecting irregularities including fraud Icont'd} To address the risk of fraud through management bias and ovefride of controls, we-. perfomed anatytical procedures to idents'fy any unusual or unexpected relationships., lesled joumal entrie5 10 identify unusual transactions., assessed whether jLsdgements and assumption$ made in detemiining the accounting estimates were indicative of potential bias and investigated the rationale behind signrficanl or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations. we designed procedures which included, bul were not limited lo.. agreeing financial slalemenl disc105ures to underfying supporting documentation., reading the minutes of rneetings of those charged with governance., enquiring of management as to actu81 and potential litigation and claims and VIewIng correspondence the group's legal advisors. The are inherent limitations in our audit procedures desuibed above. The more removed that laws and regulations are from financial transactions, the less likely il is that we would become aware of non-compliance. Auditing standards also limit the audit pmcedures 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 misstalements that arise due to fraud can be harder lo delecl 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.ukJauditorsresponsibilities. This description foms part of our audilorfs 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 th& Companies Act 2006. Our audit work has been undertaken so that we might stale lo the charitable companls members and Iruslees those matters we are required lo slate lo them in an auditorfs report and for no other purpose. To the fullest exlenl permitted by law, we do not accept or assume responsibility to anyone other than the charitable company, the charitable companvs members and Iruslees as a boty, for our audit work, for this report, or for the opinions we have fomied. Sno Clai on FCA DChA {Senior Statutory Auditor) for and on behalf of SMH Jolliffe Cork Audit Ltd Chartered Accountants and Statutory Auditor 33 George Street Vvakefield, WF11LX October 2024 11
The Society of Local Authority Chief Executives and Senior Managers {Solace Group) Ltd Consolidated Statement of Financial Affairs (including ¢onsolidaled income and expenditure account) for the year ended 31 March 2024 Total Funds 2024 Total Funds 2023 Unrestricted Restricted Funds Funds Unrestricted Restricted Funds Funds Notes INCOME Donations 2.000 2,000 Income from charitable activities 2,753,684 529,404 3,283,088 2,212,356 235,514 2,447,870 Income from otheractivities Commercial trading operations 7,964,657 7,964,657 8,152,422 8,152,422 Income from investments 24,423 24,423 5,913 5,913 Total income 10,744,764 529.404 11,274,168 10,370,691 235,514 10,606,205 EXPENDITURE Cost of ftising ftinds Investment management costs Commercial trading operations 2.350 7,389,470 2,350 7.389.470 2,346 7,366,849 2,346 7,368,849 Expendtiure on charkable activities Education & Training Membership services 2,527,647 930,518 483.692 3.011,339 930,518 2,178,531 747.615 310,239 2,488,770 747,615 Loss on disposal of fixed assets Total expenditure 10.849,985 483,692 11,333,677 10,295,341 310,239 10,605,580 Net income I (expenditure) before Iransfers {105,221} 45,712 159,5091 75,350 (74.7251 625 Gross transfers between funds Net income I (expenditure) before recognised gains l (losses) {105.2211 45,712 159,509) 75,350 174,7251 625 Other rocognised gains l (losses) Unrealised gains I (losses) on inveslmenls 11,900 11,900 113.2781 {13,278} Net movement in fund$ for the year 193,3211 45,712 {47,6091 62,072 174,7251 {12,653) Reconciliation of funds Total fund5 bl 20 1.435,325 363,042 1,798,367 1.373.253 437,767 1,811,020 Total funds clfv 20 1 342 004 408 754 1750 758 1435 325 363 042 1798 367 The statement of financial activities includes all gains and losses recognised in Ihe year. All income and expenditure derive from continuing activities. The notes on pages 15 to 23 fom an integral part of these financial slatemenls. 12
The Socièty of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd Consolidated Balance Sheet asat 31 March 2024 Group 2024 Group 2023 Charity 2024 Charity 2023 Notes Fixed assèts Tangible assets Investments 12 13 156,658 157,496 314,154 105,876 145,293 251,169 86,920 219 530 306,450 58,048 207,327 265,375 Total Fixed Assets Current assets Debtors Cash at bank and in hand Total Current Assets 14 2,106,503 1,541,497 3,648,000 1.834,066 1.730,820 3,564,686 495,866 1,500,610 1,996,476 389.252 1,488,400 1,877.652 Creditors: falling due thin one year 15 2,210,761 2,012.065 1,008,327 897,562 Net current assets 1.437,239 1,552,821 988,149 980,090 Total assets less current liabilities 1,751,393 1,803,990 1,294,599 1.245.465 Provisions for liabilities and charges 16 635 5,623 Net Assets 1750 758 1 798 367 1 294 599 1 245 465 The funds of the charity Unrestricted income funds Restricted income funds 20 20 1,342,004 408,754 1.435.325 363,042 885,845 408,754 882.423 363,042 Total charity funds 1 750 758 1798 367 1 294 599 1245 465 The Iruslees have prepared group accounts in accordance wth 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 con51ilule the annual accounts required by the Companies Act 2006 and are for circulalion lo members of the company. The financi statements were approved by the Tnjstees on 20 September 2024 and signed on their behalf by.. G L Jones Truslee The notes on pages 15 10 23 form an integral pari of these financial statements. 13
The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd Statement of Cash Flows and Consolidatod Statèment of Cash Flows asat 31 March 2024 Group 2024 Group 2023 Charity 2024 Charity 2023 Cash flows from operating activities Net movement in funds for the year Adjustments for.. Depreciation Unrealised investment Igainsl I losses Re-invested dividend income Fees netted off investment portfolio Intest received Loss I Igainl on disposal of fixed assets Decrease I (increase) in debtors Increase I Idecff ase) in creditors Increase I (decrease) in provisions (47,609) (12,653} 49,134 (38,0411 63,522 (11,900) 12,6531 2,350 {21,770) 3,475 {272,437) 198,696 14,9881 59,925 13,278 {2,371) 2,346 {3,542) 40,173 (11,900) {2,653} 2,350 {19,7901 37,401 13,278 {2,371) 2,346 {1.90n {468,615} 255,267 (64,066) I1,614) 110,765 (52,714) 109,122 Cash generated from I (used in) operating actlvities 93,314 220,431 Cash flows from investing activities Inlèresl received Fixed asset purchases Released from managed portfolio 21,770 {117,779) 3,542 (17,527) 19.790 {69,045) 1,907 15,438) Cash provided by I (usèd in) investing activities 96,009 13,985 49,255 3,531 Cash flows from finaneing activities In¢rease l {decrease) in cash and eash equivalents in the year 1189,3231 1234,416) 12,210 63,583 Cash and cash equivalents at the beginning of the year 1,730,820 1,965,236 1,488,400 1,424,817 Cash and cash equivalents at the end of the year 1 541497 1730 820 1500610 1488 400 14
The Society of Local Authority Chief Executive$ and Senior Managers (Solace Group) Ltd Notes to the Consolidated Financial Statement$ for the year ended 31 March 2024 1 Accounting polici•s Basis of preparation The financial slalements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordance wlh the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective 1 January 2019} - (Charities SORP IFRS 10211, the Finanual Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 20c. The charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or Iransaction value unless otherwise stated in the relevant accounting policy note(s). The charity's functional and presentation currency is the pound slerfing £. All financial infomation presented has been rounded to the nearest £, unless otherwise stated. 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 ils subsidiary Solace In Business Ltd. Subsidiary undertakings are included using the acquisition method of accounling. Under this method the group nel incoming resources include the results of subsidiaries from the date of acquisition and lo the date of sale outside the group in case of disposals of subsidiaries. The purchase consideratson has been allocated lo the assets and liabilities on the basis of fair value al the dale of acquisition. The trustees have taken advantage of the exemption afforded by section 408 of the Companies Act 2006 and a separate Slalement of Financial Activities and income and expenditure account for the charity has therefore not been presented. Going concern The fin8nci81 slalements have been prepared on a going concem basis. In preparing the accounts the Iruslees have considered possible risks, events or conditions that might casl significant doubt on the ability of the charitable company lo conb'nue as a going concem and therefore on the appropriate use of the going concern basis. Regularty monitoring the operational and financial perfomance of the charity and its subsidiary is part of the routine activities of executive management Imonthlyl and of the separate company boards Iquarterfy). This includes detailed management accounts and the analysis of pipeline activity (income and margins), logether wth perfomance indicators ranging from opportunity conversion rates lo customer satisfaction across all areas of aclivily. Financial forecasts for the period through lo 31 August 2025 have - together vwth current reserves, cash balances and available overdraft facilities - also been reviewed as part of that regular monitoring activity. Based on such reviews and related enquiries, the Iruslees have concluded that there is a aSOnable expectation that the ¢harilable company has adequate resources to continue in operational existence for the foreseeable future and therefore they have continued lo adopt the going concem basis in preparing ils financial statements. Fixed assets a) Fixed 8$5ets are initially recorded al historic cost. b> Depreciation is provided lo write off the cost or valLsation, less estimated residual values, of all fLxed assets except f ehold land, over their expected useful lives. It is calculated at the following rates.. Improvements lo short leasehold propety Over the term of the lease Fixtures & Fittings 25Q/o on reducing balance Computer equipment 20010 or 33D/o on cost Fixed Asset investments lllvestments in subsidiaries are stated al historical cost less provision for diminution in value. Other investments are slated al fair value. Income recognifjon al Income from charitsble activities (including trading) in the fom of services is recognised in the relevant periodls) in which the activity takes place or is earned. A¢livity income received in advance is defeed until enlillement lo the income has arisen at which lime it is credited lo the Statement of Financial A¢tivities. 15
The Society of Local Authority Chief Executives and Senior Managers (Solace Groupl Ltd Notes to the Consolidated Financial Ststements {contlnued) for the year ended 31 March 2024 Income recognition {conVd) b) t)onations and voluntary income are accounted for when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. C) Grant funding received for a specified area of the chaiity's Work or for a specific purpose is accounted for as restricted funds. Grants received wthoul reslriclion are recognised when the charity has entitlement to the funds. any perfomiance conditions attached to the grants have been met. il is probable that the income be received and the amount Can be measured reliably and is not deferred. d) Investment income is recognised on an accruals basis. Gift aid distribution from subsidiary company to parent charity Profits over and above those needed lo meet the wothing capital requirements of subsidiary companies are transferred lo the parent charity by way of a gift aid dislribulion. As no legal obligation exists. the distributions in respect of the current and comparative year represent amounts paid as al the balance sheet date. Expenditure a) All expenditure is accounted for on an accruals basis. VAT is recovered on relevant expenditu. Irrecoverable VAT 15 included Mrithin the relevant expense of the charity in the year in which il is incurred. b) Activities in furtherance of the charilvs objectives include the direct costs of staff and propety together with the Osls of projects and activities. cl The Iruslees consider that management and administration costs of the charity are not material when taken in the context of amounts spent on charitable activities. All members of slaff have been active in fulfilling the objectives of the charity. Support costs Support costs relate lo functions that assist the work of the charity bul do not directly undertake charitable activities. They include back office, finance. personnel, payroll and governance costs le.g. the preparation and examination of the statutory accounts, the costs of directors meetings and the cost of legal advice on conslilulional matters). The bases on which support costs have been allocated are sel out in note 10. 1.10 Operating leases Rentals payable under operating leases are charged to Ihe 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 a recognised in the Statement of Financial Aclivilies in the period in which they become payable in accordance wlh 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 a as follows.. Unrestricted fvnds Funds are expendable at the discretion of the trustees in furtherance of the objects of the charity. Restricted funds call only be used for particular restricted purposes within the objectives of the charity. These arise when funds are subject lo specsfic re5triclive conditions imposed by fundersldonors or by the purpose of the grant. The trustees may at their discretion set aside unrestricted funds for specrfic purposes. Restrlcted funds Deslgnated funds 2 Legal status and control The charity is a company limited by guarantee. All members have agreed lo conlribyte 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 lo individuals designated as senior officers of local authorities in England. Seolland, Wales, Northem Ireland. the Channel Islands and the Isle of Man. Membership is also open lo senior officers of any other board. authority or committee exercising local govemment or public service functions in any of the indicated geographic areas. Elected members of local authorities a not eligible lo for membership of the charitable company. noknthstanding thal they may be othefwise qualified. 16
The Society of Local Authorty Chief Executives and Senior Managers (Solace Group) Ltd Notes to the Consolidated Financial Ststemenls (continued) for the year ended 31 March 2024 3 Financial pÈrformance of the charity The Consolidated Statement of Financial Activities includes the results of the charitvs wholly owned subsidiary company (note 5}. which provides Interim placement and executive recnjitment services. The summary financial perfomiance of the charity alone is as follows.. Unrestri¢tsd Funds Restricted Funds Total 2024 Totsl 2023 Donations Gift aid distribution from trading subsidiary {note 5) Income from investments Income from charitable a¢livilies 2,000 673,910 22,443 2,753,684 3,452,037 2,000 673,910 22,443 3,283.088 3,981,441 761,820 4,278 2.447,870 3,213,968 529,404 529,404 Investment management fees Expendilure on charitable activities 12,3501 13,458,165) (8,4781 11,900 882,423 12,350) {3,941,8571 37,234 11,900 1,245,465 12,346) {3.236,385} {24,763} {13,2781 1,283,506 1483,692) 45,712 Net income Unrealised gains l {losses) on investments Total funds brought forward Total funds carried forward 363,042 408 754 885 845 1294 599 1 245 465 Represented by.. Restricted income funds Unrestricted income funds 408,754 885,845 1294 599 383,042 882,423 1 245 465 Total Funds 2024 Total Funds 2023 4 Income from charitable activities Unrestricted Restricted Education and training Membership activi118S 2,195,845 557,839 2 753 684 515,000 14,404 529 404 2,710,845 572,243 3 283 088 1,906,592 541,278 2 447 870 Restricted income relating to education and training represents grant funding received in relation to specified aclivilies. 5 Income from commercial trading operations The charity has one wholly owned trading subsidiary, Solace In Business Ltd Inote 13), which is incorporated in England and Wales and provides recruitment services to the public sector. Profits over and above those needed lo meet the working capital requirements of the subsidiary are transferred lo the charity by way of a gift aid dislribulion. The distribution amounts stated below are the total sums paid across wthin the relevant financial year. The summary financial performance of Ihe subsidiary alone is as follows.. 2024 2023 Tumover Cost of sales and administration costs Exception81 co$15 Interest receivable 7.964.657 {7,394.458} 8,152,422 {7.374,036) 6.467 1,635 1.980 Net profit Taxation 572.179 786.488 4,988 720 Profit for the financial year Gift aid distribution to parent charity Retained in Subsidiary 577,167 787,208 {673,910) {761,820) 17
The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd Notes to the Consolidated Financial Ststèmènts (continued) for the year ended 31 March 2024 5 Income from Commercial tradsng operations (convd) 2024 2023 The assets and liabilities of the subsidiary were.. Fixed assets Current assets Current liabilities Provisions for liabilities and Charges Inole 161 Total net assets 69,758 1,654,696 {1,205,6301 16351 47,848 1,692,787 {1,120,080) (5,6231 614 932 518 189 6 Invesiment income 2024 2023 Dividends Bank and other interest 2.653 21.770 2.371 3,542 7 Investment management costs 2024 2023 Portfolio management Stsff costs and numbers 2024 2023 Salaries Social security costs Pension costs 2,022,785 182,009 125,287 2 330 081 1,779,099 179,232 114.987 2 073318 The average monthly number of employees during the year was as follows.. Number 2024 Number 2023 Executive directors Other staff 50 51 45 46 18
The Society of Lo¢al Authority Chief Exe¢utives and Senior Managers {Sola¢e Group) Ltd Notes to the Consolidated Financial Statements (continued) for the year ended 31 March 2024 Education & Training Memborship Services Total 2024 9 Expenditure on ¢haritable activities Governance ¢osls (note 101 Support costs (note 101 Direet delivery Central premises IT support and consumables Communications Depreciation Travel & subsi51ence Irrecoverable VAT Marketing Bank interest and transaction charges Inlemational relationships and support Other costs 38,764 915,287 1,776,314 36.244 76,180 22,140 480,887 299,323 18,127 24,339 60,904 1,396.174 2,075,637 54,371 100,519 29,314 20,132 93,200 2,425 2,278 10,858 11,514 10,302 2,800 844 10.684 38,700 930518 40,172 31,646 103,502 5,225 3,122 10,684 59,901 3 941 857 21,201 3011 339 Expenditure on charitable activities was £3.941,857 (2023.. £3,236,385) of which £3,458.165 was unrestricted {2023-. £2,926,146) and £483,692 was restricted12023.' £310,239). 10 Governance and support costs Total 2024 Total 2023 Basis of apportionment Staff role$ and time allocation Support costs Govemance Salaries and related costs 1,392,607 36,190 1,428,797 1,308,448 Audit fee Invoice description Invoice description Invoice description Invoice description 8.210 8,210 8,514 Other professional and legal fees Board funning costs 460 13,469 13,929 10,211 3,035 3,035 561 Sundry expenses 3,107 3,107 7,856 1396 174 1457 078 1335 590 11 Stsff costs, trustee remuneration and expenses. and the cost of key management personnel The key management personnel of the groLtp and the parent charity comprise the trustees and senior managers whose names are listed on page 7. Total remuneration and employee benefits for key m2nagement personnel amounted lo £764,909 (2023.. £749,146) including pension contributions of £56,363 {2023.. £56.414} This includes one trustee, G McDonald12023: one trustee - G McDonaldl who ceiVed remuneration relating to their contract of employment wth the charity or its subsidiary. The number of employees eaming rn0 than £60,000 per annum {including related pension conlribulions) is.. Group Group Charity 2024 2023 2024 Charity 2023 Between £60,001 and £70,000 Between £70,001 and £80,000 Between £80,001 and £90,000 Between £90,001 and £100,000 Between £100,001 and £110,000 Beeen £110,001 and £120,000 Between £120,001 and £130,000 19
The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd Notes to the Consolidatsd Financial Statements (continued) for the year ended 31 March 2024 11 Staff ¢o$ts. trustee remunerdtion and expenses, and the ¢ost of key management personnel l¢ont'd) During the year ended 31 March 2024 no Iruslee (2023.. no trustee) received remuneration or benefits from the charity for acting as, or in Connection with, Iheir appointment as a trustee of the charity. During the year one non- executive trustee12023= three trustees) was reimbursed expenses totslling £7,77612023.. £11,138} including £7,54212023.. £10,794) relating lo representing the organisalion at inlemational partner events. 12 Tangible fixed assets Improvements to short leasehold to property Group Fixtures and fittings IT Computer equipment infrastructure Total Cost At 1 April 2023 Additions Disposals At 31 March 2024 244,907 39.317 (13,030) 271 194 43,096 6,014 {6,9311 288.003 117.779 (19,961) 43,560 28,888 28 888 385 821 Depreciation At 1 April 2023 Charge for the year Disposals Al 31 March 2024 157,407 48,790 (9,5551 196642 24,720 9.957 (6,9311 182,127 63.522 (16,486) 229 163 1,766 3,009 3009 Net book value At 31 March 2024 25 879 156 658 Al 31 March 2023 105 876 Improvements to short leasehold to property Charity Fixtures and fittings IT infrastruclure Computer equipment Total Cost Al 1 April 2023 Additions Disposals At 31 Marth 2024 172,833 19.471 11,867 6,014 184,700 69,045 43,560 192 304 253 745 Depreciation At 1 April 2023 Charge for Ihe year Disposals At 31 March 2024 120,482 34,617 6,170 3,790 126,652 40,173 1,766 155099 166 825 Net book value At 31 March 2024 41 794 86 920 At 31 March 2023 20
The Society of Local ALrthority Chief Executives and Senior Managers (Solace Group) Ltd Notes to the Consolidated Flnancial Ststemenls (continued) for the year ended 31 March 2024 Group 2024 Charity 2024 13 Investments 2023 2023 Listed investments (managed portfolio) Investment in subsidiaries 157,496 145,293 157,496 62,034 219 530 145,293 62.034 207 327 157 496 145293 Investment in subsidiaries Subsldlary company Nature of business Number, class andpercentage of shares held Net assots at 31 March 2024 Solace In Business Ltd, registered in England & Wales (Company No. 3150254) Interim placement and executive recruitment 19 ordinary £518,189 The activities and results of this subsidiary company a summarised in nole 5. Subsidiary company Nature of business Number, class and percentage of shares held Net assets at 31 March 2024 SEL Business SeNices Limited, registered in England & Wales (Co. No. 87044241 Domant 20 ordinary £20 {1 OO0/ol Listed investments (managed portfolio Total Market value Al 1 April 2023 Addilions Revaluations Management fees Reclassification I transfer At 31 March 2024 145,293 2,653 11.900 12,350) 157 496 Net book value At 31 March 2024 At 31 March 2023 145 293 There are no investment assets outside the UK Group 2024 Charity 2024 14 Dèbtors 2023 2023 Trade debtors Other debtors Amounls owed by group undertakings Prepayments and accrued income 1,580,421 1,356,033 318 375,768 242,963 318 3,174 116,924 495 866 526,082 2 106 503 477,715 1834 066 145,971 389 252 Group 2024 Charity 2024 15 Creditors Amounts falling due wthin 1 year.. Trade creditors Other creditors Corporation tax Social security and other taxes Amounts owed lo group undertakings Accruals and deferred income 2023 2023 1,168,729 27,126 676,290 19,806 404,319 12,260 144,288 11,313 216,605 258.%5 93,620 92,023 5,557 644.381 897 562 804,301 2 210 761 1,057,904 2 012 065 498,128 1 008 327 21
The Society of Local Authority Chief Executives and Senior Managers {Solace Group) Ltd Note$ to the Consolidated Financial Statement5 (continued) for the year ended 31 March 2024 16 Provisions for liabilities and charges The charity is exempt from lax on InMe and gains falling wthin 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 51- Taxation for the year comprises Cutrent and deferred tax. Current lax is recognised at the amount of lax payable using the rates and laws that have been enacted or substantively enacted by the balance sheet dote. Deferred lax is recognised in respect of 811 timing differences that have originated but not VerSed al the balance sheet date. as set out below.. Group 2024 2023 Deferred tax 635 635 5,623 Deferred tsx A¢¢olerated eapital allowances.. At 1 April 2023 Movement in year At 31 Mareh 2024 5,623 4,988 635 17 Financial instruments Solace In Business Ltd, a wholly owned subsidiary of the charity, has access to an approved overdrdft facility of £150,000 available through National Weslminsler Bank Plc. That facility is cOVed by 8 debenture in the bank's standard fom, dated 27 August 2024, providing a floating charge over all propety and assets of the subsidiary company. There is no guarantee provided by the charity in connection with the indicated facilrty. At 31 March 2024 the unpaid balance drawn down against this facility was £nil. 18 Operating leases As al 31 March 2024 ¢ommitrnents under non-cancellable operating leases were as follows= Land & Buildings 2024 Land & Buildings 2023 Other 2024 Other 2023 Group Due within one year Due within to five years Due over 5 years 40,000 150,000 173.333 363 333 4,657 Land & Buildings 2024 Land & Buildings 2023 Other 2024 Other 2023 Charity Due within one year Due within Im to five years Due over 5 years 40.000 150,000 173.333 363 333 19 Pensions schemes Deflned contributlon pension scheme The charitable group operates a defined ¢onlribulion pension scheme for the benefit of all employees. Contributions to the scheme for the year ended 31 March 2024 amounted to £125,287 (2023.. £114,987). This includes accrued conlribution5 of £21.126 (2023.. £19,80SI included in other creditors Inole 151. 22
The Society of Local Authority Chief Executives and Senior Managers (Sotace Group) Ltd Notes to the Consolidated Flnancial Ststements {continuèdl for the year ended 31 March 2024 Balance at Net incoming 1 April Resources 2023 Balance at 31 March 2024 20 Funds Transfers Unrestricted General Designated 1,120,261 315.064 1435 325 {69,885) 23,436 1,050,376 291,628 1 342 004 Restrictsd Managerial leadership Coaching & Mentoring Sector research Skills training 206,205 78,600 43,747 34,490 363 042 135,080 (18,9001 {35,9781 34,490 58,900 {58,900} 400,185 800 7,769 408 754 Designated funds: The directors have identified that certain unrestricted funds should be ring-fenced as follows.. Branch reserves - representing the historic surplus or deficit accumulated through various geographically based activities covering Solace Group members in Scotland, Wales, Northem Ireland and certain English regions. Restricted funds.. M2nagerial leadership grant funding received lo subsidise the formulation and delivery of tailored programmes which support public sector leaders and strategic managers in the development of their people and organisations lo meet current and future sector challenges, demands and opportunities. Grant funding ID provide subsidised coaching and mentoring for local authority senior managers. Grant funding lo enable sector research and educationa5 events for local authority senior managers on key areas of public policy such as health and elhnicily, diversity and inclusion. Sufficient cash SOurCeS a held lo enable each of Ihe identified funds to be applied without any restrictions. 21 Analysis of Group net assets between funds Funds balances at 31 March 2024 are fepresented by.. Tangible fixed assets Investments Current assets Creditors- amounts falling due within 1 year Provisions for liabilities and charges Unrestricted Designated Restricted Total 156,658 157,496 2,947,618 {2,210,7611 635 1050 376 156,658 157,496 3,648,000 12,210,761) 635 1 750 758 291,628 408,754 291 628 408 754 22 Capital commitments Cap¢tal amounts contracted 8131 March 2024 bul not provided for in these financial slalements amounted to £nil for the group and charitable company {2023'. £nil). 23 Related Party Transactions During the year ended 31 March 2024 the charity received a gifl aid distribution of £673,910 {2023.. £761,820) from Solace In Business Ltd Inote 5). Throughout the year lo March 2024 the charity made a cash facility available to Solace In Business Ltd (a wholly owned subsidiary) lo draw down and repay on a flexible basis. Interest was charged al 5010 on month-end balances. The maximum amount loaned to Solace In Business Ltd during the year was £185,000 and al 31 sl March 2024 the unpaid amount oustanding was £nil. Other related party transactions made by the charity dLsring the year ended 31 March 2024 were: B Marjoram, a trustee of the charity, received payment of £2.27512023'. £nil) from the ¢hanly for professional seNices supplied. 23