Registered charlty number: 1084419 Company number (registered in England & Wales): 04053417 The Society of Local Authority Chief Executives and Senior Managers {Solace Group) Ltd la company limited by guarantee) Consolidated financial statements for the year ended 31 March 2025
The Society of Local Authority Chief Executives and Senior Managers {Solace Group) Ltd Consolidated financial statements for the year ended 31 March 2025 Contsnts Report of the trustees Auditors report 10-12 Consolidated Statement of Financial Activilies 13 Consolidated Balance Sheet 14 Consolidated Statement of Cash Flows 15 Notes to the financial ststements 16-24
The Society of Local Authority Chief Executlves and Senior Managers (Solace Group) Ltd Report of the Trustees for the year ended 31 March 2025 The trustees presenl their annual directors, report together with the consolidated financial slalements of the charily and its subsidiary for the year ending 31 March 2025 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 20C6, Ihe Memorandum and Articles of Association, and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance wilh 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 povety, 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 lime occupation in the interests of social welfare, particularly through the promotion of efficiency and good practice in local government." The charilvs governing documents permit il to do anything lawful that is deemed neSSary to promote its objects. including linter alial.. employing staff,. promoting. encouraging or undertaking sludy or research or disseminating the resulls 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 charitls objects., and, entering into any arrangements with any govemments, authorities or any person. company or association necessary to promote any of the charity's objects. Alms and purpose Strategic aims of the charity are focused on.. providing opportunities for local public service leaders lo learn. develop and to network with each other and with contemporaries from other areas of public life., influencing debates about the future of public services, to ensure that policy is infomied by the experience and expertise of our members., building the integrity and reputation of public service management.. and supporting local public servi$ to recruit and place the brightest and best to 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 services Achievements and perforniance So18 has enjoyed another successful year of progress, with a priority focus on 50th anniversary celebrations. Our anniversary events, marketing and publications provided the backbone and rhythm to support the other business plan priorities, with a series of regional activities as well as national. Whilst liming of the UK general election in July disrupted our planned timetable, the profile of KPI targets and income generation was reshaped in the light of that and anniversary events were adapted and rearranged as appropriale to give a solid end to the year and sound platform on which to develop and grow through the next financial year. This anniversary year was also used to engage our membership body, and staff, proactively in the future direction of the profession and how Solace as an organisation can best support it. A consultation document was circulated lo all members in October 2024, with related conversations culminating in an awayday in February 2025 for members of the sector policy board and subsidiary company board as well as the main Solace board. Along with managemenl team sessions, this has informed development of a strategic business plan 2025-30. Staff have responded positively to the proposed strategic direction, including through focus groups. Policy The Solace 'Plal report- the second in a trilogy commemorating our 50th annivers8ry and providing a comprehensive examination of the current state of local government in England and key policy asks - was published soon after Ihe general election and sent to all relevant members of the new Govemment in addition to publicising through our usual channels. Al the Solace Summit in October we published our 'Fast-forward' report which brought together contributions from across our members discussing the future of local government.
The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd Report of the Trustees Icontinued) for the year ended 31 Mar¢h 2025 Achievements and performance {cont'd) Policy (cont'd) Engagement with Govemment resulted in 147 meetings dunng the year. Along with 468 meetings with other stakeholders. this enables us to create a wider infiuence and ensure that the professional voice of local govemment is heard across all levels of govemment and with stakeholders who partner and collaborate with the sector. Solace has seen ils work and activity published in some 41 articles in extemal publications across the year, as well as 115 press mentions. Appointment of a new Solace President from 1 st January 2025, along with several new members of the policy board during the year. has seen a refresh of policy activity. The President has outlined four priorities for his two-year tenure - places, people, equity, purpose- and these themes will run through the new strategic business plan and our events programmes, including the Solace Summit in October 2025. A report on each theme will be published during 2025 & 2026, with work commenced on the 'Place' report in the final quarter of 202425 for publication shortly before the July 2025 LGA conference. Member engagement At 31 March 2025 there were over 1,900 Solace members across all categories, with 84 /0 of local authorities acr05S the UK covered by Solace membership. This continues the steady growth of recent years but was behind our growth target. Following publication of the English Devolution White Paper in December 2024, il is likely that devolution and local government reorganisation will impact on membership- individuals are assessing future uncertainty in the shape and exislence of their local authority against the benefit of ongoing sola membership and network of support. Currently 33 /tr of our members are from authorities in tWO- tier areas, while we have over 80 members from combined authorities. In light of the uncertain and volatile policy and financial environment for the sector, during the year our strategy for membership recruitment has evolved. The focus is now on retaining individuals who initially receive membership as part of a learning programme. This will take lime to work Ihrough and impact our retention and overall membership numbers as individuals, complete programmes, bul il does provide a clearer focus for our activity. We are also working with colleagues from combined authorities to ensure our offer remains relevant as increasing numbers of strategic authorities are created. Membership will come into greater focus next year as a key change project in the strategic business plan 2025-30. Over the year almost 1,400 delegates attended Solace-led online events and circa 1,450 delegates attending fac&lo-face events. Importantly, 95 /0 of attendees were satisfied or very satisfied with sola events through the year. Leadership development The charity also supported the development of 1,444 individuals as part of our leaming and leadership offer across a range of programmes and sector organisations. The successful piloting of a new council chief executive programme was significanl for Solace and the sector and will inform future development and expansion of our whole leadership pipeline as a key strand of the strategic business plan 2025-30. Other significant leadership programme activity during the year to March 2025 included.. AMPlify. a development programme designed to nurture and uplift diverse talent. was awarded the Best Talent Programme Award according to the industry recognised body PLJblic SeNices People Management (PPMA) growth of our AMPlify programme aimed at empowering a diversity of senior managers and leaders across our sector lo progress in their careers, ensuring they can flourish and thal their abilities are recognised and nurtured in their councils further cohorts of our Ignite programme for experienced council chief executives rolled OLtI the twelfth year of our Springboard programme for talented aspiring leaders from across the UK 326 apprentices were supported across all programmes, with a 64 % qualification achievement rate in the academic year ending August 2024 (which tracks to an ESFA 'good' rating} significantly above the target rate of 56 /. 98 % of Solace learning and development programme attendees were satisfied or very satisfied programme development activily ranging from a new programme al strategic director level or equivalent to exploring the potenlial for formal accreditation for some of our programmes alongside a CPD points system for events and short courses to encourage continuous professional development continuing to specifically support sector leaders on the challenges of working in a political environment, particularly in the light of changes to the standards regime and the importance of wider ethical considerations Recruitment support The charitls trading subsidiary, Solace In Business Ltd, in the year to March 2025 provided £510,270 to help support the charilable aims of Solace. This includes support from our valued Business Partners, but most significanlly the returns from interim recruitment, executive search and consultancy activity which is carried out on a 'profit-for-purpose' basis.
The Society of Lo1 Authority Chief Executives and Senior Managers {Solace Group) Ltd ReF)Ort of the Trustees {continued} for the year ended 31 March 2025 Achievements and perforniance l¢ont'd} Recruitment support (cont'd) A positive start to the year helped insulate the recruitment business from market slowdown promoted by the July general election. Business development opportunities through the autumn broughl activity levels back more strongly but both the interim and permanent recruitmenl markets were then significantly disrupted in the final quarter- a traditionally strong quarter for the company - by sector uncertainty following publication of the English Devolution White Paper in December. In response to local government devolution and reorganisation proposals, Solace In Business has developed a strong and comprehensive offer for Councils and for Solace members. Our offer was circulated to all members. plad on the LGA'S 'LGR Hub, and will continue to be marketed and adapted as the situation develops. Further development of our consultancy offer is also a key change activity in the strategic business plan 2025-30, helping to spread the achievement of commercial return - and any uncertainty for the charills reliance on related retums and donations - across a breadth of services, while leveraging the local govemment insight and expertise Solace has al ils disposal. During the year to March 2025 Solace In Business assisted 78 different organisations UK-wide accessing inter5m and consultancy support. We were again ranked in the top 10 providers of interim management services {aGross all sectors, nol just local government) by the Institute of Interim Management {IlM}. noting the commitment to fair pay, transparent contracts and meaningful placements. Our business partner programme also remains an important contribLrtor to the charily. 11 has performed strongly this year and is exceeding expectations in terms of income and Ihe number of partners involved. There also remains an important symbiotic relationship between our event sponsorship, regional work and the business partner programme, where we aim lo continue growth in the coming year. Key performance indicators sn 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 impacl 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 periodls). Examples include= income and margins- sickness absence-, membership renewals and additions,. number of leamers supported.. number of organisations worked wilh., conversion rates for tendered activity.. associates ulilisation.. customer satisfaction., and, website and social media performance (viewings, lick throughs and interactions). Public Benefit The stated purpose of Solace is 'lo help unleash the po&live power of local govemment,. On that foundational premise, 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 government to facilitate better provision of public works, services and amenities in the interests of social welfare., the promotion of knowledge, skills and COTnpetence amongst its members - being individuals wholly or mainly employed as local authority chief executives and senior managers., and promoting the cause of local government, including parliamentary lobbwng and influence on policy discussions and decision-making. 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 (Juty 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 publi benefit requirements under that Acl. 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.
The Society of Local Authorty Chief Executives and Senior Managers (Solace Group) Ltd Report of the Trustees (continued) for the year ended 31 March 2025 Financial Review Iconfd) Investment performance Evelyn Partners continue to manage an investment portfolio on behalf of the charity. The portfolio was valued al £166,156 on 31 March 2025, which includes an £7,877 gain on revaluation. In the year ended 31 March 2025 there was an overall £8,660 net increase in funds after investment managemenl charges (note 13). 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 investmenl, 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 l (expendilurel before recognised gains l {losses> was The net assets ofthe charitable group at 31 March 2025 were Available funds 10.823,737 10,638,499 185 238 1943 873 At 31 March 2025 Ihe charity had freely available reserves for rts general purposes amounting to This comprises the balance in unrestricted funds, excluding tangible fixed assets and investments. Reserves policy The charivs reserves policy is based on the value of unrestricted resetves excluding designated funds. with a target of covering 6 monlhs operating costs (calculated to be £941,930 as at 31 March 20251 and a minimum of 3 months operating osts {£776,910 as at 31 March 2025). At £1,165,091 (note 21) the value of unrestricted resee5 excluding de5ignaled fund5 as at 31 March 2025 compares favourably to the stated targel reserves level. In the event that future circumslances require it, currently designated funds may be undesignated in order to address required needs. Risks and uncertalnties £1 189234 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 montlor 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. During 202425 work commenced on the adoption of a refreshed risk management approach lo enhance the current annual idenlificalion of key risks as part of business planning. The refreshed approach will be aligned lo implementation of the strategic business plan 2025-30 following initial mapping of identified risks as part of the strategic business planning developmeni process, with trustee monitoring and review integrated in the regular risk management activity cycle. Initial risk mapping of Ihe new strategic plan shows that, as in previous years but possibly more amplified going foard, a volatile political environment for local authorities and the wider public sector is a principal area of risk and uncertainly. This is compounded by reorganisation for some in Ihe sector and by threats from the wider financial environment for the public sector, both of which have potential lo particularly impact the market in which Solace operales. These uncertainties are primarily dealt with by staying close to the sector and through active engagemenl in policy discussions wilh central government and key sector stakeholders, as already referenced earlier in Ihis report. From a financial risk perspective, identifying new income streams as well as growing existing income streams is key, together with achieving the right balance between commercial and seclor (charitable) support within activity and partnerships. Solace will continue to ensure its charitable mission is central whilst also continuing to seek appropriate new incorne opportunities to support long term financial sustainability. From a communications and marketing perspective key risks are not being able to effectively engage with core members and clients and becoming less relevant to whal the sector fequires so that our brand becomes stale. Plans to strengthen our corporate structure and capacity (operational and digitall will seek to mitigate these. Proactive, effective engagement with 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.
The Society of Local Authority Chief Executives and Senior Managers {Solace Group) Ltd Report of the Trustees {contSnued for the year ended 31 March 2025 Financial risk management The charity and its subsidiary use financi81 instruments comprising cash and debtors. Their main purpose is to finance the working capital cycle of the group. Policies for man8ging 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. Customers are largely public sector organisations who by their nature are Gonsidered 'low ri5k'. 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 its operating cash flows do not cover all financial obligations at a specific point in time, Solace In Business Ltd (a wholly owned subsidiary) is able to access arranged overdraft facilities. Group companies have a good relationship with their bankers. Credrt risk Interest risk Liquidity risk Future Plans Strategic planning in a change-rich, volatile and uncertain environment 2024 marked the 50th anniversary of Solace. The world in 1974 was very differenl to that we face a half century later. It was therefore timely over 2024-25 to assess and look afresh at how Solace is operating, building on its strength and growing in areas which members have described as important for the fLrture sustainability of the sector. Solace's unique selling point is Ihal it is of the sedor and for the sector. Every pound we earn goes to supporting our members and the wider seclor. Solace is the only body representing all professional leaders in local government. advocating on behalf of the local government workforce. Member SUNeys and qualitattve evidence highlight that Solace is a trusted brand, bLrt trust is long earned and quickly lost. To maintain relevance and ensure that the sector is supported through one of the mosl politically, economically and socially volatile periods the UK has faced for some time, it is essential Ihal we reshape not just what we prioritise but also how we operate and deliver our priorities. The support and guidance sought by members has increased, for example with traditional governance norms being tested. and this trend is expected to continue for the foreseeable future. The Solace group is also mindful of the conslrained resources in which public services are operating. In developing future plans and designing future operations, Solace will seek to invest to build capacity thal is focused on.. growing our support offer to professionals in the sector- maximising relums so that every pound earned supports our members and the sector,. and, ensuring that we can operate sustainably a5 a membership body with our charitable mission at the heart. Solace mission and future objectives 2025-30 Solace's mission is to champion local government and local government careers. Solace champions by providing both support and challenge to the people employed in councils to help them be the best they can. Solace helps councils to focus on their people because when employees thrive so do their counci15. communities and place. This mission is framed by the four priorities sel by our President: place, people, equity, purpose. Solace has a pivotal thought leadership role lo play in how the sector leads local places. Solace will reimagine and reinvest in the role of senior and middle management officer leadership - our people. We will nurture and celebrate whal our colleagues do, harness and retain future talent and support the next generation of local authority officer leaders which reflect and represent our communities and Ihe hidden wealth in our places. We will make progress on furthering equality, diversity and inclusion al all levels in local govemment, and on shifting power lowards equity, listening to unheard voices, acting with humility and honesty about the challenges we face into the future. Local government chief executives and senior managers - the people Solace represents, supports and invests in - have the privilege of purpose, undertaking a professional role Ihat means they make a difference to everyday lives. Our work will advocate for the importance of purpose lo a good life. to enable a suslainable future and provide a powerful offer for future leaders in our sector.
The Society of Local Authority Chief Executives and Senior Managers {Solace Group) Ltd Report of the Trnstses {continuedl for the year ended 31 March 2025 Future Plans Icont'd) 2025-30 key objectives for delivery Four key objectives have been identified to underpin achievement and delivery of our mission to champion local govemmenl and local government Gareers, each of which is indicated below along with related key activity. Key performance indicators for each objective were finalised as part of strategic business plan and progress is monitored by the board of sola and, where relevant. the subsidiary company Solace In Business Ltd. Objective 1.. Building our professional network Our first objective is to strengthen the connections sola has across local government. A larger Solace network will foster collaboration. knowledge-sharing and lead to better outcomes for Councils and those they support. We will undertake the following strategic activity to achieve this objeclive.. Deliver a successful, cornprehensive virtual and faCe-tO-fa national events programme. Provide a strong and effective marketing and communications activity plan to encourage greater membership take-up and improve renewal rates. Strengthen and further develop regional branches ensuring a more consistent approach to delivery and lo encourage greater member take-up. Deliver an impactful and effective engagement programme with current and future private sector partners including through our business partner programme and other events and roundtables. Provide and deliver effeclive engagement mechanisms with and lo the sector including frequent updates to our regular ommunications products and channels {e.g. the weekly Policy Briefing), monthly member webinars and collaborative work with stakeholders. Make best use of dala and market intelligence, including demographic analysis of our members, to deliver high quali(y and informed services. Objective 2.- Raising our voice and impact We will advocate for the value and importance of local government and its leaders and be the 'go to, professional voice in shaping the future of local governmenl in how we improve our places, support our people, further equity and act with purpose. We will achieve this by doing the following activities.. Ulilise the role of our President and the Chair of each board to raise our collective voice including through the bi-annual President report. Provide a clear and consistent message, speaking as one Solace voice through delivery of high-quality communications. Drive fOard the President's priorities wilh a focus on regularly engaging with senior civil servants and govemment ministers on key strategic policies. Deliver insightful thought leadership and effective lobbying on behalf of the sector through a range of media {e.g. articles, letters, briefings. bespoke roundtableslworkshops). Provide and deliver effective engagement and collaboration with strategic partners {e.g. MHCLG), other membership bodies (e.g. LGA), third parties (e.g. think tanks) and business partners on common causes, where relevant. Objectlve 3.. Tackling the barriers to better local government We will help local government perform at ils absolute besl through improved capacity and skills, championing high standards of responsibility, promoting equality, diversity, inclusion and ensuring leaders better represent the communities they serve. We will undertake the following strategic activity to demonstrate progress in achieving this objective.. Develop and deliver a leadership and management framework for professional leaders and development programme for middle managers. Maintain and enhance Solace's role as a sector wide champion for equalities, diversity and inclusion. Deliver quality assured programmes of professional development across all stages of careers to develop a strong pipeline of talent for now and the future. Provide high quality, bespoke recruitment and assessment and interim seNices lo Ihe public seclor nationwide. Champion and develop professional slandards and ethics in local govemment including through leadership of a commission into professional standards and elhics. Raise the profile of local govemmenl as a career choice through work with stralegic partners, including the Local Government Association and MHCLG.
The Society of Local Authority Chief Executives and Senbor Managers (Solace Group) Ltd Report of the Trustees {¢ontinuedl for the year ended 31 March 2025 Future Plans {¢ont'd) 202&30 key objectives for delivery (Cont d) Objective 4.. Committing to being a responsible organisation that sets the highest stsndards of govemance and support We act with high standards of professionalism ensuring thal we deliver for the benefit of the sector and the wider public good. Specific activities which help us achieve this will include.. Embedding high quality leaming and development and recruitment practice that builds a diverse and professional workforce and associate base. Review of financial systems to ensure they are robust. sustainable, fit for purpose and aligned to our long-term mission. Refreshed governance arrangements. including process for recruitment and renewal to the Board(s). Adopt a refreshed approach to risk management. Review currenl digital capacity (hardware and people) and processes {effective use of syslems) and identify next steps improvement actions to ensure Solace is operationally fit for future purpose. Develop an effective internal communications strategy and programmes across Ihe organisation, including mechanisms to celebrate and recognise employee success. Structure, Governance and Management Governlng document The charity is controlled by its governing document (a deed of trusl dated 9 January 1986), and constitutes a company limited by guarantee (incorporated in England & Wales). It is govemed 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 govemed by directors who are also the trustees of the charity, as listed on page 8. The directors are responsible for administering Ihe 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 perfomiance. When carrying out their governan duties for the charity, Ihe directors have regard for Ihe 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 charily are identified from within the membership and appointed at the Annual General Meeting. Thirdpaty indemnitypmvision for director5 The charity has third paty indemnity insurance in place covering all directors of the charity. Induction and tralning of new dirtorS New directors re1ve 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 lo 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 direclors consider that the board of directors (who are Ihe 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. All non-executive directors give of their time freely in that capacity and no director received remuneration during the year (2024.. £nil) in connection with their appoinlmenl or duties as a director of the charity Details of directors, expenses are provided in note 11 to the financial statements.
The Society of Local Authority Chief Executives and Senior margerS (Solace Group} Ltd Report of the Trustees {continuedl for the year ended 31 March 2025 Structure, Governance and Management {cont'd) Pay policy for senlor staff {cont'd) Staff pay is reviewed annually. Recommendations relating to senior staff and executive directors are considered by the non-execulive directors on the Board or by a sub-committee of non-execLrtive directors and relevant advisors. Any agreed pay increase would generally be based on Gonsideration of a range of potential influencing factors, such as inflation measures and public sector pay awards. Market rates for Gomparable roles are also periodically considered, particulady as part of recruitment activities. Directors and trustees The directors of the charilable company {the charity) are its trustees for the purpose of charity law. The trustees and officers serving during Ihe 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.. Chair.. Finance lead.. Solicitor President.. President.. SIB Chair.. K R O'Dwyer G L Jones A J Steven RALMcKoy R J Tuddenham (appointed 1 January 2025) M V Prosser (resigned 31 December 2024J REHyde Other elected non-executive directors.. J Burns GKDoe C Elliott S H Fitzgerald P R Frainer S J Gamer SKHall S P Hanson AMHill (appointed 1 November 2024) (resigned 18 Ocfober 2024) N S A Hussain-Duke B M K Marjoram C D Naylor D V Plank E Rogers J L Roney D R Thomas R G S Weaver (resigned 18 October 2024) Isigned 18 October 2024) Employed executive director.. G V McDonald Key management personnel: Senior managers of The Society of Local ALrthority Chief Executlves and Senior Managers (Solace Group) Ltd Managing Director G V McDonald Director of Corporale Resources S R P Chambers Director of Engagement J A Howarth Director of Leaming T l Birtwell Director of Policy. Partnerships & Public Affairs A J B Thomson Key management personnel: Senior managers of Solace In Buslness Ltd Business Development Director T J McDougall Director of Executive Resourcing & Assessment S J Guest Director of Interim Management J K Mullinger Our advisers Auditor5 SMH Jolliffe Cork Audit Ltd, 33 George Street, Wakefield WF1 1LX Lloyds Bank plc, 27-31 While Hart Street, High Wycombe, HP112HL National Westminster Bank Plc, 23 Uplands Crescent, Swansea SA2 ONY Bankers
The Society of Local Authority Chlef Executives and Senior Managers (Solace Group) Ltd Report of the Trustees (continued) for the year ended 31 March 2025 Reference and administrative details Company number Charity number 4053417 1084419 Registered office Ground Floor. 2 Red Hall Court Wakefield West Yorkshire WF12UN Trustees, responsibilities in relation to the financial statements The charity trustees (who are also the directors of The Society of Local Aulhority Chief Executives and Senior Managers (Solace Group) Ltd for Ihe purposes of company lawl 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.. select suitable accounting policies and then apply them consistently., observe the methods and prinaples in the Charities SORP., make judgements and estimates that are reasonable and prudent., state whether applicable UK accounling standards have been followed, subject to any material departures disclosed and explained in the financial slatements., prepare the financial statements on the going concern basis unless it is inappropriate to presume Ihat the charity will continue in business. The trustees are responsible for keeping proper accounting records Ihat 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 asset5 of the charily 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 companls website. Legislation in the United Kingdom governing the preparation and disseminalion of financial statements may differ from legislation in other jurisdiclions. 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: there is no relevant information, being information needed by Ihe auditor in connection with preparing their report. of which the group's auditor is unaware. and the trustees, having made enquiries of fellow directors and the group's auditor that they ought to have individually taken, have each taken all steps that helshe is obliged to tske as a director in order to make themselves aware of any relevant audit infomalion and to establish that the auditor is aware of that information. Signed on behalf of the trustees on 19th September 2025 K R O'Dwyer Trustee
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 2025 Opinion on financial ststsments We have audited the financial statements of The Society of Local Authority Chief Executives and Senior Managers (Sola Group) Ltd for the year ended 31 March 2025 which comprise the Consolidated Statement of Financial Activities, the Consolidated and the Parent Charity Balance Sheet, the Consolidated Cash Flow Statement and the relaled 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 PraGtice>. In our opinion the financial statements.. give a true and fair view of the state of the group's and the parent charitable company's affairs as at 31 March 2025, and of the group's incoming resources and application of resources, including its income and expenditure, for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practi., and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordan with International Slandards on Auditing (UK) {ISAs {UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities fof 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 oblained 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 concem basis of accounting in the preparation of the financial stslements 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 doubl on the group's and the parent charitable companls ability to continue as a going concern for a period of at least twelve months from when the financial statements are aLrthorised for issue. Our responsibilities and the responsibilities of the truslees with respect to going concern are described in the relevant sections of this report. Other information The trustees are rest)onsible for the other information. The olher 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 infomiation and, except to the extenl 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 lo read the other information and, in doing so, consider whether the other information is materially inconsistent with Ihe financial statements or our knowledge obtained in the audit or olhewise appears to be malerially misstated. If we identify such malerial inconsistencies or apparent material misstatements, we are required lo determine whether there is a material misstatement in the financial statemenls 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-. the information given in the truslees, report lincorporaling the directors, report prepared for the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements., and the directors, report included within the trustees, report has been prepared in accordance with applicable legal requirements. 10
Independent Auditor's Report to the Members and Trustees of The Society of Local Authority Chief Executives and Senlor Managers ISola¢e Group) Ltd (continued) for the year ended 31 March 2025 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 idenlified material misstatements in the Irustees, report. We have nothing lo report in respect of the following matters where the Companies Act 2006 requires us to report to you rf, in our opinion.. the parent charitable company has not kept adequate and sufficient accounting records, or retums adequate for our audit have nol been received from branches not visited by us; or the parent charitable companvs financial statements are not in agreement with the accounting records and retums., or certain disclosures of trustees, remuneration specified by law are nol made.. or we have not reIVed all the information and explanations we require for our audit.. or the trustees were not enlitled to prepare the financial statements in accordance wilh the small companies regime and take advantage of the small companies exemplion in preparing the directors report and from the requirement to prepare a strategic report. Responsibilities of trustses 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 thal 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, whelher 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 goin9 concem and using the going concern basis of accounting unless the trustees eilher intend to liquidate Ihe group or the parent charitable company or to cease operalions, or have no realistic allernalive but to do so. Audltorfs responsibilities for the audit of the financial ststements Our objectives are to obtain reasonable assurance about whether the finanaal 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 {UKI 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 expecled 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, lo delect material mi5Stalements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, inciuding fraud is detailed below- The extent to which the audit was considered Capable of detecting irregularitie5 including fraud Our approach to identifying and assessing the risks of material misstatements in respect of irregularities, including fraud and non-complian with laws and regulations, was as follows.. the engagement partner ensured that the engagement team collectively had the appropriate competen, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations- we identified the laws and regulations applicable lo Ihe group through discussions with the Irustees and olher informed management which we considered may have a dired material effect on the financial statements or the operalions of the group and thereafter, the audit team remained alert to InStanS of non-compliance Ihroughout the audit. We assessed the susceplibility of the group's financial slatements to material misstatement, including obtaining an understanding of how fraud mighl occur. by.. making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud and considered the internal controls in place to mitigate risks of fraud and non- compliance with laws and regulations.
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 2025 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 override of controls, we: perfomied ana1ICal procedures to identify any unusual or unexpected relationships- tested joumal entries to identify unusual transactions., assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias and investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations. we designed procedures which included, but were not limited to.. agreeing financial statement disclosures lo underlying supporting documentation,. reading the minutes of meetings of those charged with govemance-, enquiring of managemenl as to actual and potential litigation and claims and reviewing correspondence with the group's legal advisors. There are inherent limitations in our audit pro¢edures 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 slandards also limit the audit procedures required to identify non-complian 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 stalements is located on Ihe Financial Reporting Council's website at.. www.frc.org.uklauditorsresponsibilities. This description forms part of our auditor's report. Use of our report Thi5 report is made solely to the charitable companls 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 thal we mighl stale to the charitable company's members and trustees those matters we are required to stale to them in an auditor's report and for no olhei purpose. To the fulSest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company, the charitable companrfs members and trustees as a body, for our audit work, for this report, or for the opinions we have formed. Claire Lawion FCA DChA (Senior Statutory Auditor) for and on behalf of SMH Jolliffe Cork Audit Ltd Accountants and Statutory Auditors 33 George Street Wakefield, WFI 1 LX 26 September 2025 12
The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd Consolidated Statement of Financial Affairs (including consolidated income and expenditure account) for the year ended 31 March 2025 Total Funds 2025 Total Funds 2024 Unrestricted Restricted Funds Funds Unrestricted Restricted Funds Funds Notes INCOME t)onations 2,000 2,000 Income from charitable activities 2,690,267 599,604 3,289,871 2,753.684 529,404 3,283.088 Income fron7 Other activities Commercial trading operations 7,505,020 7,505,020 7,964,657 7,964,657 Income from investments 28,846 28,846 24.423 24,423 Total incomè 10,224,133 599,604 10.823,737 10.744,764 529,404 11,274,168 EXPENDITURE Cost ol raising funds Investment management costs Commercial trading operations 2,552 6,982.628 2,552 6,982.628 2,350 7,389,470 2,350 7,389,470 Expenditure on charitable aGtivities Education & Training Membership services 2,271,764 844,041 537.514 2,809,278 844,041 2,527,647 930,518 483,692 3,011,339 930,518 Total expenditure 10,100,985 537,514 10,638,499 10,849,985 483.692 11,333,677 Net income I (expenditure) before transfers 123,148 62.090 185,238 1105,221) 45,712 (59.509) Gross transfers between funds Net income I (expenditure) before recognised gains l {losses 123,148 62,090 185.238 (105,221) 45,712 159,5091 Other recognised gains I Ilossesl Unrealised gains l (losses) on investments 7,877 7,877 11,900 11,900 Net movement In funds for the year 131,025 62,0 193,115 (93,321) 45,712 147,6091 Reconciliation of funds Total funds bld 20 1.342,004 408,754 1,750,758 1,435.325 363,042 1,798.367 Total funds clfvid 20 1473 029 470 844 1 943 873 408 754 1750 758 The statement of financial activities includes all gains and losses recognised in the year. All income and expendilure derive from continuing activities. The notes on pages 16 to 24 form an integral part of these financial statements. 13
The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd Consolidated Balance Sheet asat 31 March 2025 Group 2025 Group 2024 Charity 2025 Charity 2024 Notes Fixed assets Tangible assets Investments 12 13 117,639 166,156 283,795 156,658 157,496 314,154 69.559 228,190 297.749 86,920 219,530 306,450 Total Fixed Assets Current assets Debtors Cash at bank and in hand Total Current Assets 14 1,344,437 2,232,699 3,577,136 2,106,503 1,541,497 3.648,000 393,386 1,894,201 2,287,587 495.866 1,500,610 1,996,476 Creditors: falling due WFthin one year 15 1,917.058 2,210.761 1,111,245 1.008,327 Net current assets 1,660,078 1,437,239 1,176,342 988.149 Totsl assets less current Ilabilities 1,943,873 1,751,393 1,474,091 1,294,599 Provisions for liabilities and charges 16 635 Net Assets 1943 873 1 750 758 1474 091 1294 599 The funds of the charity Unrestricted income funds Restricted income funds 20 20 1,473,029 470.844 1.342,004 408.754 1,003.247 470,844 885.845 408,754 Total charity funds 1943 873 1 750 758 1474 091 1294 599 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 lo 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 19th September 2025 and signed on their behalf by.. K R O'Dwyer Trustee The notes on pages 1610 24 form an integral part of these financial statements. 14
The Society of LoGal Authority Chief Executives and Senior Managers {Solace Group) Ltd Statement of Cash Flows and Consolidated Statement of Cash Flows asat 31 March 2025 Group 2025 Group 2024 Charity 2025 Charity 2024 Cash flows from operating activities Net movemenl in funds for the year Adjustments for.. Depreciation Unrealised investment (gains) I losses Re-invested dividend income Fees netted off investment portfolio Interest received Loss l (gain) on disposal of fixed assets Decrease l {increase} in debtors Increase l (decrease) in creditors Increase l (decrease) in provisions 193,115 (47,609) 179,492 49,134 50,659 17.877) {3.335) 2,552 (25,511) 63,522 (11,900) {2,653) 2,350 (21,770) 3,475 (272,437) 198,696 {4.988) 23,189 {7,877) {3,335) 2,552 (24,005) 40,173 111,900> 12,653) 2,350 (19.790> 762,066 (293,703) {635) 102.480 102,918 (106,614> 110,765 Cash generated from I (used inl operating activities 677,331 93,314 375,414 61,465 Cash flows from investing activities Interest received Fixed asset purthases Released from managed portfolio 25,511 (11,640) 21,770 (117,779) 24,005 (5,828) 19,790 (69,045) Cash provided by l (used in) investlng activities 13,871 96,009 18,177 49,255 Cash flov from financing activities Increase l (decrease) in cash and cash equivalents in the year 691,202 (189,323) 393,591 12,210 Cash and cash equivalents at the beginning of the year 1,541.497 1,730.820 1.500,610 1,488,400 Cash and Cash equivalents at the end of the year 2 232 699 1541497 1894 201 1500 610 15
The Society of Local Authority Chief Executlves and Senior Managers (Solace Group) Ltd Notes to the Consolidated Financial Statements for the year ended 31 March 2025 1 Accounting policies Basis of preparation The financial statements have been prepared in accordan 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 1021 (effective 1 January 2019) - (Charities SORP IFRS 102}), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 26. The charity meets the definition of a public benefit entily under FRS 102. Assets and liabilities are initially recognised at historical cost or Iransaction value unless othewise stated in the relevant accounting policy nolels}. The charity's functional and presentation currency is the pound sterling £. All financial informalion 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 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 dale of acquisrtion 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 advanlage of the exempiion afforded by section 408 of the Companies Act 2006 and a separate Slatemenl of Financial Activilies and income and expenditure account for the charity has therefore not been presented. 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 Iherefore 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 execLrtive 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 perf0rrnan indicators ranging from opportunity conversion rates to customer satisfaction across all areas of activity. Financial forecasts for the period through lo 31 August 2026 have - together with 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 truslees have concluded Ihal 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. Fixed assets al Fixed assets are initially recorded at historic cost. bl Depreciation is provided to wrste off the cost or valuation, less estimated residual values, of all fixed assets except freehold land, over their expected useful lives. It is calculated at the following rates.. Improvements to short leasehold property Over the term of the lease Fixtures & Fittings 25% on reducing balance Computer equipTnent 20/0 or 33% on cost Fixed Asset investments Investments in subsidiaries are stated at historical cost less provision for diminulion in value. Other investments are stated at fair value. Income recognition a) Income from charitable activities (including trading) in the form of services is recognised in the relevant periodlsl in which the aclivity takes place or is earned. Activity income received in advance is deferred until enlitlement to the ncome has arisen at which time it is credited to the Statement of Financial Activities. 16
The Society of Local Authority Chief Executlves and Senior Managers {Solace Group) Ltd Notes to the Consolidated Financial Statements Icontinued) for the year ended 31 March 2025 Income recognition (cont'dl b} Donations and voluntary income are accounted for when the charity is legally entitled lo the income and the amount can be quantified with reasonable accuracy. c) Grant funding received for a specified area of the charitvs work or for a specific purpose is accounted for as reslricted funds. Grants received without restriction are recognised when the charity has entitlement to the funds. any perfomiance conditions attached to the grants have been met, it is probable that the income will 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 Ihose needed to meet the working capilal 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 Cuent and comparative year represent amounts paid as at the balance sheet date. Expenditure a) All expenditure is accounted for on an accruals basis. VAT is recovered on relevant expenditure. Irrecoverable VAT is included within the relevant expense of the charity in the year in which it is incurred. b} Activities in furtherance of the charitys objectives include the direct costs of staff and property together with the costs of projects and adivities. c) The trustees consider thal management and administration costs of the charity are not material when taken in the context of amounts spent on charitable activities. All members of staff have been active in fulfilling the objectives of the charity. Support costs Support costs relale lo funclions that assist the work of Ihe charity but do not directly undertake charitable activities. They indude back office, finan, personnel. payroll and govemance costs {e.g. the preparation and examination of the stalulory accounts, the costs of directors meetings and the cost of legal advi on constilulional matters). The bases on which support cosls have been allocated are set out in note 10. 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: Unrestrictod funds Funds are expendable at the discrelion of the trustees in furtherance of the objects of the charity. Restricted funds can only be used for particular restricted purposes within the objectives of the charity. These arise when funds are subject to specific reslrictive conditions imposed by fundersldonors or by Ihe purpose of the grant. The trustees may at their discretion set aside unrestricted funds for specific purposes. Restricted funds Designated funds 2 Legal status and control The charity is a company limiled by guarantee. All members have agreed to contribute an amount nol exceeding £1 each to the assets of the company the event of it being wound up. The charity is controlled by its members. Membership of the charilable 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 olher board, authority or committee exercising local govemment or public SeiCe functions in any of the indicated geographic areas. Elected members of local aulhorities are not eligible to for membership of the charitable company. nolwithstanding thal they may be otherwise qualified. 17
The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd Notss to the Consolidated Financial Statements (continued) for the year ended 31 March 2025 3 Financial performance of the charty The Consolidated Statement of Financial Activities includes the results of the charitvs wholly owned subsidiary company (note 5), which provides Interim placement and execulive recruitment seNices. The summary financial performance of the charity alone is as follows.. Unrestricted Funds Restrictsd Funds Total 2025 Total 2024 Donations Gift aid distribution from trading subsidiary (note 5) Income from investments Income from charitable activities 2.000 673,910 22,443 3,283,088 3,981,441 510,270 27.340 2,690,267 3,227,877 510.270 27,340 3,289,871 3.827,481 599,604 599,604 Investment management fees Expendilure on Gharitable activitie5 Net income (2,552) (3,115,800) 109,525 12,552) (3.653,314> 171.615 12.350) {3,941.8571 (537,514) 62,090 37.234 Unrealised gains l (losses) on investments Total funds brought forward Total funds carried forward 7,877 885.845 7.877 1,294,599 11,900 1,245,465 408,754 1003 247 1474 091 1 294 599 Represented by.. Restricled income funcls Unrestricted income funds 470,844 1,003,247 1474 091 408,754 885,845 1294 599 Total Funds 2025 Total Funds 2024 4 Income from charitable activitie5 Unrestricted Restricted Education and tfaining Membership activities 2,123,767 566,500 2 690 267 585,000 14,604 599 604 2.708,767 581,104 3 289 871 2.710,845 572,243 3 283 088 Restricted income relating to education and training represenls granl 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 131, 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.. 2025 2024 Income Cost of sales and administration costs Exceptional costs Interest receivable 7,505,020 {6,983,263) 7,964,657 {7,394,458} 1.506 1.980 Nel profit 523,263 572.179 Taxation 635 4,988 Profil for the financial year Gfft aid distribution to parent charity Retained in subsidiary 523,898 577,167 {510,270) (673,910) 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 2025 5 Income from commercial trading operations {cont'd) 2025 2024 The assets and li8bilities of Ihe subsidiary were.. Fixed assels Current assets Current liabilities Provisions for liabilities and charges (nole 161 Total net assets 48,100 1,310,941 1827,2241 69,758 1,654,696 (1,205,630) {635) 518 189 531817 6 Investment income 2025 2024 Dividends Bank and other interest 3,335 25,511 28 846 2,653 21,770 24 423 7 Invostment management costs 2025 2024 Portfolio management 8 Staff costs and numbers 2025 2024 Salaries Social security costs Pension costs 2,050,726 186,239 128,748 2 365 713 2,022.785 182,009 125,287 2 330 081 The average monthly number of employees during the year was as follows.. Number 2025 Number 2024 Executive directors Other staff 49 50 50 51 19
The Society of Local Authority Chief Executives and Senior Managers {Solace Group) Ltd Notes to the Consolidated Financlal Statements (continued) for the year ended 31 March 2025 Education & Training Membership Services Totsl 2025 9 Expenditure on Charitable activities Governance costs {nole 10) Support costs {note 10) Direct delivery Central premises IT support and consumables Communications Depreciation Travel & subsistence IeCOVerable VAT Marketing Bank interest and transaction charges Intemalional relationships and support Other costs 33.756 965.944 1,595.648 30.836 79,170 16.721 463,948 261,507 14,644 29,302 50,477 1,429,892 1,857,155 45,480 108,472 16,921 11,185 57,322 1,780 2,347 6,268 9,780 5,686 1,683 869 5,111 28.522 23,189 20,965 63,008 3,463 3.216 5,111 42,891 3653 319 Expenditure on charitable activities was £3,653,319 {2024'. £3,941,857) of which £3,115.805 was unrestricted {2024-. £3,458,165) and £537,514 was restricted12024.' £483,692). 10 Governance and support Costs 14,369 2 809 278 Total 2025 Total 2024 Basis of apportionmeni Staff roles and time allocation Invoice description Invoice description Invoice description Invoice description Support costs Governan¢e Salaries and related costs 1,425,987 37,084 1,463,071 1,428,797 Audit fee 9.165 9,165 8,210 Other professional and legal fees Board running costs 115 124 239 13,929 4.104 4,104 3.035 Sundry expenses 3,790 3,790 3,107 1429 892 1 480 369 1457 078 11 Staff costs, trustee remuneration and expenses, and the c05t of key management personnel The key management personnel of the group and the parent charity comprise the trustees and senior managers whose names are listed on page 8. Total remuneration and employee benefits for key management personnel amounted to £783,658 (2024= £764,909) including pension contributions of £56,346 (2024.. £56,363). This includes one trustee, G McDonald12024.' one trustee - G McDonald) who received remuneralion relatin9 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 contribulions) is: Group Group Charity 2025 2024 2025 Charity 2024 Between £60,001 and £70,000 Between £70,001 and £80,000 Between £80,001 and £90,000 Between £90,001 and £100.000 Beeen £100,001 and £110,000 Between £110,001 and £120,000 Beeen £120,001 and £130,000 20
The Society of Local Authority Chief Executives and Senior Managers (Solace Group) Ltd Notss to the Consolidated Financial Statements (continued) for the year ended 31 March 2025 11 Staff costs, trustse remuneration and expenses, and the cost of key management personnel (cont'd) During the year ended 31 March 2025 no trustee (2024= no trustee) received remuneration or benefits from the charity for acting as, or in connection with their appointmenl as. a trustee of the charity. During the year three non- execLrtive trustees {2024.' one trustee) were reimbursed expenses totalling £4,137 {2024: £7,776) including £3,504 {2024.' £7.542) relating to representing the organisation at international partner events. 12 Tangible fixed assets Improvements to short leasehold to property Group Fixtures and rittings IT Computer equipment infrastructure Total Cost At 1 April 2024 Additions Disposals At 31 March 2025 43,560 28,888 271,194 5.828 42,179 5,812 (6,769) 385.821 11,640 {6,769) 43 560 277 022 390 692 Depreciation At 1 April 2024 Charge for the year Disposals At 31 March 2025 1.766 4,356 3.009 6,470 196,642 30,098 27,746 9,735 {6,769) 229,163 50,659 (6,769) 273 053 226 740 30712 Net book value At 31 March 2025 37 438 At 31 March 2024 156 658 Improvements to short leasehold to property Charity Fixtures and fittings IT infrastructure Cornputer equipment Total Cost At 1 April 2024 Additions Disposals 43,560 192.304 5,828 17,881 253.745 5,828 {1.622) 257 951 {1,622) Al 31 March 2025 198 132 Depreciation At 1 April 2024 Charge for the year Disposals At 31 March 2025 1,766 4,356 155,099 14,954 9,960 3,879 {1,622) 166,825 23,189 {1,622) 170 053 188 392 Net book value At 31 March 2025 At 31 March 2024 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 2025 Group 2025 Charity 2025 13 Investments 2024 2024 Listed investments (managed portfolio) Investment in subsidiaries 166,156 157.496 166,156 62,034 228 190 157,496 62,034 219 530 166 156 157496 Investment in subsidiaries Subsidiary company Nature of business Number, ¢lass and percentage of shares held Net assets at 31 March 2025 Solace In Business Ltd. registered in England & Wales {Company No. 3150254) Interim placement and executive recruitment 19 ordinary {100 /.) £531,817 The activities and results of this subsidiary company are summarised in note 5. Subsidiary company Nature of business Number, class and percentage of shares held Net assets at 31 March 2025 SEL Business Services Limited, registered in England & Wales {Co. No. 8704424) Dormant 20 ordinary £20 {1CQ%I Llsted investments (managed portfolio) Total Market value At 1 April 2024 Additions Revalualions Management fees Reclassification I transfer At 31 March 2025 157,496 3.335 7,877 12,552) 166 156 Net book value At 31 March 2025 At 31 March 2024 157496 There are no investment assets outside the UK Group 2025 14 Debtors Charity 2025 2024 2024 Trade deblors Other debtors Amounts owed by group undertakings Prepayments and accrued income 999,539 1,580,421 248,829 375,768 21.391 123,166 393 386 3,174 116.924 495 866 344,898 1 344 437 526,082 2 106503 Group 2025 15 Creditors Amounts falling due within 1 year: Trade Greditors Other creditors Corporation tax Social security and other laxes Amounts owed to group undertakings Accruals and deferred income Charity 2025 2024 2024 714,446 24,286 1,168,729 21,126 308,472 18,186 404,319 12,260 224,727 216,605 111,625 93,620 953,599 1 917 058 804,301 2 210 761 672,962 1 111 245 498,128 1008 327 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 2025 16 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 Ihe Taxation of Chargeable Gains Act 1992 to the extent that these are applied to ils charitable objects. The trading subsidiary. Solace In Business Ltd, is nol exempt from taxation (see note 5). Taxation for the year comprises current and deferred lax. Current tax is recognised at the amount of tax payable using the rates and laws that have been enacted or substantively enacled by the balance sheet date. Deferred lax is recognised in respect of all liming differences that have originated but not reversed at the balance sheet date, as set out below.. Group 2025 2024 Deferred tax 635 635 Deferred tax Accelerated capital allowances.. At 1 April 2024 Movement in year At 31 March 2025 635 635 17 Financlal Instruments Solace In Business Ltd. a wholly owned subsidiary of the charity. has access to an approved overdraft facility of £150,000 available Ihrough National Westminster Bank Plc. That falitY is covered by a debenture in the bank's standard form, dated 27 August 2024, providing a floating charge over all property and assets of the subsidiary company. There is no guarantee provided by the charity in connection with the indicated facility. At 31 March 2025 the unpaid balan drawn down against this facility was £nil. 18 Operating leases As at 31 March 2025 commitments under non-cancellable operating leases were as follows.. Land & Buildings 2025 Land & Buildings 2024 Other 2025 Other 2024 Group Due within one year Due within two to five years Due over 5 years 40,000 150,000 133,333 323 333 4,657 40,000 150,000 173,333 363 333 4,657 Land & Buildings 2025 Land & Buildings 2024 Other 2025 Other 2024 Charity Due within one year Due within two to five years Due over 5 years 40,000 150,000 133,333 323 333 40,OCN) 150,000 173,333 363 333 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 2025 amounted to £128,74812024.' £125,287). This includes accrued contributions of £21,877 {2024.' £21,126) included in other creditors (note 15). 23
The Society of Local kuthority Chief Executives and Senior Managers (Solace Group) Ltd Notes to the Consolidated Financial Statements {contlnued) for the year ended 31 March 2025 Balance at Net incoming 1 April Resources 2024 Balance at 31 March 2025 20 Funds Transfers Unrestricted General Designated 1,050,376 291,628 1342 004 114,715 16,310 131 025 1,165,091 307,938 1473 029 Restricted Managerial leadership Coaching & Mentoring Sector research Skills training 400,185 800 7,769 70,659 (800} {7,769} 470,844 408 754 Designated funds: The directors have identified Ihal rtain unrestricted funds should be ring-fend as follows.. Branch reseeS - representing the historic surplus or deficit accurnulated through various geographically based activities covering Solace Group members in Scotland, Wales, Northem Ireland and certain English regions. Restricted funds: Managerial leadership grant funding received to subsidise the formulation and delivery of tailored programmes which support public sector leaders and strategic managers in the development of their people and organisations to meet current and future sector challenges, demands and opportunities. Grant funding to provide subsidised coaching and mentoring for local authority senior managers. Grant funding to enable sector research and educational events for local authority senior managers on key areas of public policy such as health and ethnicity. diversily and inclusion. Sufficient cash resources are held lo enable each of the identified funds to be applied without any restrictions. 21 Analysis of Group net assets between funds Funds balanS at 31 March 2025 are represented by= Tangible fixed assets Investments Current assets Creditors= amounts falling due within l year Provisions for liabilities and charges Unrestricted Designated Restricted Total 117,639 166,156 2,798.354 (1,917,058) 117,639 166,156 3,577.136 {1,917.0581 307.938 470.844 1 165091 307 938 1943 873 22 Capital commltments Capital amounts contracted at 31 March 2025 but not provided for in these financial statements amounted lo £nil for the group and charitable company12024.' £nil>. 23 Relatsd Paty Transactions During the year ended 31 March 2025 the charity receNed a gift aid distribution of £510,270 (2024.. £673,910) from Solace In Business Ltd {note 51. Throughout the year to March 2025 the charity made a cash facility available lo Solace In Business Ltd la wholly owned subsidiary) to draw down and repay on a flexible basis. Interest was charged at 5% on monlh-end balances. The maximum amount loaned to Solace In Business Lld during the year was £175,000 and al 31st March 2025 the unpaid amount oustanding was £nil. Other related paty transactions made by the charity during the year ended 31 March 2025 were.. B Maryoram, a trustee of the charity, reiVed paymenl of £1,625 (2024.. £2,275) from the charity for professional services supplied. 24