EVERYDAY LANGUAGE SOLUTIONS (A COMPANY LIMITED BY GUARANTEE) DIRECTORS, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Charity registration number- 1091582 Company registration number: 04384294 (England and Wales)
EVERYDAY LANGUAGE SOLUTIONS (A COMPANY LIMITED BY GUARANTEE) COMPANY INFORMATION Reference and administration details Charity registration number 1091582 Company registration number 04384294 Directors J Lupton W W Overin M A Turnbull S Fletcher A l Hellawell IHart Registered offlce Carbury House Concorde Way Preston Farm Stockton on Tees TS18 3TB Auditor Stephenson Coates Audit Limtted West 2, Asama Court Newcastle Business Park Newcastle upon Tyne NE4 7YD Bankers Unity Trust Bank PIC Four Brindleyplace Bimiingham B12JB
EVERYDAY LANGUAGE SOLUTIONS (A COMPANY LIMITED BY GUARANTEE) CONTENTS Contents Page Trustees, Annual Report Ilncluding Directors. Report) Independent Auditor's Report 8-10 Statement of Financial Activities (Including Income and Expenditure Account) Balance Sheet 12 Statement of Cash Flows 13 Notes to the Financial Statements 14-22
EVERYDAY LANGUAGE SOLUTIONS (A COMPANY LIMITED BY GUARANTEE) TRUSTEES, ANNUAL REPORT (INCLUDING THE DIRECTORS, REPORT) FOR THE YEAR ENDED 31 MARCH 2024 The Trustees present their report and the audited financial statements of the charty for the year ended 31 March 2024. The Trustees have adopted the provisions of the Statement of Recommended Praclice (SORP) "Accounting and Reporting by Charities" (FRS 1021 in preparing the annual report and financial statements of the charity. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's goveming document, the Charities Act 2011 and Accounting and Reporting by Charities.- Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102). Reference and administrative details Trustees of the char The directors of the charitable company are its trustees for the purposes of charity law. The Trustees who have served during the year and since the year end were as follows.. J Lupton W W Overin M A Turnbull S Fletcher A l Hellawell IHart Ke mana ement ersonnel Chief Operating OfFicer.' W Peacock Chief Finance Officer.. S Jones See company infomiation page for further detsils. Objectives and Activities (incl public benefit statement) The charity's main objective is to provide professional, confidential. and impartial interpretation and translation services in the North East region of England. Their goal is to serve community groups. individuals, and local service providers, with a focus on improving the quality of life for the local BME {Black and Minority Ethnic) ommunity- This is achieved by offering free training to individuals who wish to support theircommunitythrough language assistance. Additionally, the Charity encourages community groups to fomalise their language skills to become professional Interpreters. which can enhance employment opportunilies. particularly for successful asylum seekers with non-recognised or non-transferable skills. Furthermore, the Charity aims to facilitate equal access to services for non-English speakers by promoting the need for professional Interpretation and Translalion services to local agencies. They also identrfy and address barriers faced by ethnic minority communities and negotiate policy issues with service providers Additionally, they provide support and advice to BME voluntary and community organisations in understanding their rights. establishing positive relationships with mainstream service providers, and offering educational and bilingual resources on mainstream and local services. The charity has successfully secured and retained several key Service Level Agreements with local infrastructure services. including County Durham and Darlington Foundation Trust, South Tyneside and Sunderland NHS Foundation Trust. North Tees and Hartlepool NHS Foundation Trust, NEPO framework for Interpreting and Translation Services. NEPO framework for BSL Interpreting services, North of England Commercial Procurement Collaberative, and Tees Esk and Wear Valley NHS Foundation Trust.
EVERYDAY LANGUAGE SOLUTIONS (A COMPANY LIMITED BY GUARANTEE) TRUSTEES. ANNUAL REPORT (INCLUDING THE DIRECTORS, REPORT) FOR THE YEAR ENDED 31 MARCH 2024 Objectives and Activities (continued) The charity also delivers services to a wide range of public, private, and voluntary organisations, including solicitors, schools, local government departments, local prisons, and community groups such as CABS (Citizens Advice Bureaus), Refugee Service, and smaller community groups. The primary activities of the charity involve providing face-to-face Interpretation services, ensuring equitable treatment, advice. and support for local BME communities and asylum seekers. These activities generate sustainable income, allowing the charty to operate without solely relying on public sector funding or actively seeking donations and trust funding. This summary report provides an overview of the charity's mission, services, key partnerships, and financial sustainability, adhering to the requirements set forth in SORP-1.20, SI 2008162940(2)b(ilaa. Further details, including financial statements and service agreements, can be found in the complete report. act and benefits of activities The charity's work has made a significant difference in the circumstances of its beneficiaries, particularly the local BME community in the North East region of England. By providing professional, confidential, and impartial interpretation and translation services, the charity ensures that community groups, individuals, and local service providers have fair and equal access to essential services. This ultimately leads to improvements in health inequalities and better health outcomes. The charity goes beyond interpretation and translation services by offering free training to individuals who wish to support their local community through language assistance. This training not only empowers individuals to provide language support but also encourages local community groups to fomialise their language skills to become professional translators and interpreters. This initiative enhances employment opportunities, especially for successful asylum seekers with non-recognised or non-transferable skills, helping them find employment and lift themselves out of poverty. Additionally, the chartty advocates for equal access to services for non-English speakers by encouraging local agencies to acknowledge the need for professional interpretation and translation setvices. They identify and understand the barriers faced by ethnic minority communities and negotiate policy issues with service providers to ensure that services are inclusive and responsive to the diverse needs of the community. Furthemore. the charity plays a vital role in providing educational and bilingual information on mainstream and local services, including the use of audio recordings for accessibility. By facilitating communication and understanding, they empower individuals to navigate and access essential services effectively. The charitls work extends to partnerships with key local infrastructure services. such as NHS Trusts and local Councils. These partnerships ensure sustainable income for the charity and reduce dependence on public sector funding. allowing them to operate efficiently without expending significant resources on seeking donations and trust funding. In summary, the Charity's provision of interpretation and translation services, along with training, advocacy. support, and partnerships, has significantly improved the Circumstances of its beneficiaries, particularly the local BME community. Their work promotes integration, reduces inequalities, enhances employment opportunities, and fosters a society that values linguistic diversity and inclusivity.
EVERYDAY LANGUAGE SOLUTIONS {A COMPANY LIMITED BY GUARANTEE) TRUSTEES, ANNUAL REPORT (INCLUDING THE DIRECTORS, REPORT) FOR THE YEAR ENDED 31 MARCH 2024 Achievements and performance Volunteered for our local Health Community Champion Team to help disseminate guidance, advice and training within the communities we support. Successfully retained our ISO 9001 certification. Successfully retained our cyber essentials accreditation. Successfully partnered with a local council to run accredited joint training for bilingual community members to become Interpreters. Commenced a program of technology upgrades to improve efficiencies. To sustain their activities, the charity has successfully secured and retained key Service Level Agreements with local infrastructure sejvices and organisations such as healthcare trusts and local councils. The organisation relies upon a number of key perfomiance indicators to assisl it in defining achievement of its core Charitable and business objectives. 1. Number of beneficiaries served.. This indicator measures the reach of the organisation's translation and interpreting services. It tracks the number of individuals or community groups that have accessed their services. providing an indication of the breadth of their impact. 2. Client satisfaction survey results.. The organisation conducts periodic satisfaction suNeys to gather feedback from clients regarding the quality and effectiveness of their translation and interpreting services. This feedback helps assess the extent to which the organisation's activities meet the needs and expectations of its beneficiaries. 3. Employment outcomes for individuals with language skills.- This indicator measures the rate of successful employment achieved by individuals who have received language training and support from the organization. It indicates the effectiveness of their initiatives in enhancing employment opportunities and relieving poverty. 4. Engagement with local service providers.. The organisation can track the number of local agencies and service providers that have acknowledged the importance of professional interpretation and translation services and have taken steps to create equal access. This demonstrates the impact of the organization's advocacy efforts and their success in influencing policy and practice. 5. Reduction in language barriers.. This indicator measures the extent to which language barriers have been reduced as a result ofthe organisation's efforts. It includes metrics such as the percentage of service providers offering language support, the number of translated materials provided, or the increase in the availabilty of interpretation services in different settings. 6. Collaborations and partnerships.. The organisation ¢an measure the number and quality of partnerships established with other charities, local authorities, or service providers. This indicator reflects the organisation's ability to collaborate effectively and leverage resources to extend the reach and impact of their activities. These performance indicators provide a holistic view of the organisation's achievements and outcomes. Monitoring these indicators allows the organisation to assess and report on the difference they have made in promoting good race relations, eliminating discrimination, encouraging equality of opportunity, and achieving their charitable objectives.
EVERYDAY LANGUAGE SOLUTIONS (A COMPANY LIMITED BY GUARANTEE) TRUSTEES, ANNUAL REPORT {INCLUDING THE DIRECTORS, REPORT) FOR THE YEAR ENDED 31 MARCH 2024 Achievements and performance (continued) Statement on Factors Affeclin Achievement of Ob'ectives Everyday Language Solutions, a charitable translation and interpretation organisation, has encountered significant positive and negative factors both within and outside its control that have influenced the achievement of its objectives. These factors have had implications for the charity's future plans as aligning with SORP-1.45. Below is an outline of these factors.. Posrfive Factors 1. Winning and retaining key setvice level agreements.. The charity's success in securing and maintaining important contracts with local infrastwcture services that provides a stable and sustainable source of income. 2. Broadening scope of operations and services= Everyday Language Solutions has implemented a strategy aimed at extending rts scope of operations and serving a wider range of beneficiaries and setvice providers. 3. Collaboration with public, private, and voluntary organisations.. The charity's partnerships with a range of public, private, and voluntary entities, including solicitors, schools, local government departments, local prisons, and community groups, have expanded its services and diversified its sources of income. Negative Factors 1. Unforeseen events and external challenges.. Like any organisation, Everyday Language Solutions has faced unforeseen events, such as the COVID-19 pandemic, which has impacted its operations and created uncertainty. Changes in public sector funding priorities and economic downtums could also pose challenges to the availability of resources and funding for the charity's initiatives. Contracts that were awarded pre pandemic have yet to be re tendered resulting in low charging structure which is not in line with the increased Cost of delivering the services. 2. Policy and regulatory changes.. Regulatory or policy changes gardIng interpretation and translation services, funding eligibility Criteria, procurement processes. a govemment change and new Asylum laws may affect the operational landscape and sustainability of Everyday Language Solutions. Adapting to these changes requires the organisation to continually monitor the regulatory environment and adjust its strategies accordingly. Future Plans Due to the aforementioned factors, Everyday Language Solutions has adopted a cautious and adaptive approach to its future plans. The charity aims to-. 1. Maintain and strengthen existing partnerships.. Enhancing relationships with local infrastructure seNices and key stakeholders is essential to ensure sustainable income and continued provision of services. Everyday Language Solutions seeks to align its future plans with these partners, priorities, anticipating potential Changes and adapting its strategies accordingly. 2. Diversify income sources.. While service level agreements provide stability, the charity recognises the importance of diversifying its income sources. Strategic initiatives will be undertaken to explore additional funding opportunities, such as grant applications, corporate sponsorships. and community fundraising, to mitigate the risks associated with public sector funding fluctuations. 3. Enhance operational resilience= In response to extemal challenges and unforeseen events, Everyday Language Solutions will continue to invest in building organisational resilience. This involves incorporating contingency plans, maintaining robust relationships with key stskeholders, and adopting flexible operational models that allow for remote or virtual service provision when faced with unforeseen circumstances.
EVERYDAY LANGUAGE SOLUTIONS (A COMPANY LIMITED BY GUARANTEE) TRUSTEES, ANNUAL REPORT (INCLUDING THE DIRECTORS, REPORT) FOR THE YEAR ENDED 31 MARCH 2024 Financial Review During the financial year, £1,495,474 of income was recognised from charitable activities (2023.. £1.353,585), £3,723 income was generated from interest on bank balances {2023-. £3.088), and £1,496,880 of costs were incurred on charitable activities {2023= £1,392,904). This has resutted in a small surplus of £2,317 (2023.. deficit £36,230) being recognised for the financial year. Statement on Reserves Polic and Amounts Held The reserves held by the charity al year end amount to £376,148 (2023.. £373,831}. Total reserves are unrestricted funds for the charity- the charity holds no restricted funds. The free reserves of the charity are considered to be the unrestricted reserves, less its fixed assets, which equates to £368,149 (2023.. £362,182) at year end. Everyday Language Solutions, maintains a resetves policy that ensures the availability of funds for a period of a minimum of three months without relying on incoming revenue. The free reserves held by the charity remain in line with the charity's reserves policy. The charitvs reserves provide financial security for the charity. its staff. and customers. Additionally. the funds held are more than adequate to facilitate the winding up of the charity's affairs if necessary. This amount provides a safeguard against unforeseen circumstances and enables the organisation to maintain its operations and fulfill its charitable objectives in a sustainable manner. The reserves held by the charity are considered sufficient to ensure the ongoing stability and enable the charity to adapt to potential financial challenges or fluctuations in funding Everyday Language Solutions follows an investment approach that considers environmental. social. ethical, and governance factors (ESGI when making investment decisions. The organization aims to maximize both financial return and positive impact, ensuring that its investments align with its broader mission and values. The Trustees are mindful of the risks associated with investments and strive to achieve optimal returns while minimizing potential risks. In compliance with the Companies Act 1989 and the charitrfs Articles of Association, the charity has secured insurance to cover the liability incurred by the Trustees in relation to their duties, providing an additional layer of protection to the organization. Stephenson Coates Audit Limited have been appointed as the charity's accountants and auditors. They have been commissioned to prepare the financial statements required under the Companies and Charities Act. thereby ensuring transparent and a¢¢urale reporting of the charity's financial affairs. By following a prudent reserves policy and managing its finances responsibly, Everyday Language Solutions can sustain its operations, ensure financial stability, and continue delivering its vital translation and interpretation setvices to benefit communities in the Tees Valley and beyond. Statement on Princi al Risks and Uncertainties The Charity Trustees have identified various risks and uncertainties that may impact the operations and financial perfomiance of Ihe charity and its subsidiary undertakings. These risks are continuously monitored and managed to ensure the sustainability and success of the organisalion. One of the principal risks is the possible decrease in demand for the charity's services alongside an increasingly competitive marketplace. To mitigate this risk. the charity has implemented a program ofadvanced technology solutions including to deliver the same quality and level of service and this will continue into the next financial year. The aim forthe solution was to be integrated by the end of 2023, howeverthis has extended and the Integration has only commenced at the end of March 2024. By integrating advanced technology by early 2024, the charity aims to remain competitive and address any potential decline in demand. Another major risk is Ihe need to consolidate the charity's position within the new contract frameworks. It is vital for the charity to ensure that all its clients continue to prioritise the use of its services. This is particularly important due to the limited funding available for local tenders. The charity recognises the importance of being accessible through national frameworks to maintain a stsble client base.
EVERYDAY LANGUAGE SOLUTIONS (A COMPANY LIMITED BY GUARANTEE) TRUSTEES, ANNUAL REPORT (INCLUDING THE DIRECTORS, REPORT) FOR THE YEAR ENDED 31 MARCH 2024 Financial Review (continued) Furthermore, the charity aims to expand on partnership working within the local area, particularly in developing consistent and accredited Interpreler training Courses. This risk requires careful collaboration and coordination with relevant stakeholders to establish high-quality training programs for interpreters. By expanding these partnerships, the charity enhances its ability to meet the demand for language assistance services while ensuring the availability of qualified interprelers. Structure. governance and management Everyday Language Solutions IELS) is a company limited by Guarantee incorporated on the 28th of February 2002, and registered as a charity on 10th April 2002. The liability of the members is limited to an amount not exceeding £10 per member. The company was established under a Memorandum ofAssociation which estsblished the object and powers of the charitable company and is govemed under its Articles ol Association. Everyday Language Solutions (ELS) is a company limited by guarantee and not having a share capital under the Companies Act 2006 governed by its Memorandum and Articles of Association dated 12th June 1997 and amended in 2008 to reflect current governance arrangements and Charitable law. Membership to the board of trustees is open to anyone aged 18 years or over and currently there are six active members who also constitute the board of trustees. Every member of the charity undertakes to contribute such amount as may be required but not exceeding £10. The board of trustees, consisting of six active members, is responsible for making strategic decisions for the charity. They adhere to three key strands of governance. namely corporatelfiduciary governance, strategic governance, and impact governance Corporatelfiduciary governance Covers oversight of finances and assets, regulatory and legal compliance, and inlernal controls. Strategic governance entails thinking and working strategically, planning for the future, and adapting to a changing environment. Impact governan assesses the charity's performance and its impact in achieving its charitable objectives. New trustees receive an induction that familiarizes them with their role and responsibilities, as well as the operations of the charity in accordance with the Memorandum and Articles of Associalion. They also receive copy of the Board Procedures and Protocols, which provide guidelines for meetings and roles. Trustee appointments require the completion and submission of necessary documentation to comply with Companies House and the Charities Commission. Trustees are encouraged to engage in continuous professional development that enhances their skills and are provided with opportunities for training and seminars. They have the responsibility to meet regularly to review the development and administration ofthe charity's affairs, as communicated by the Chief Operating Officer and the Chief Finance Officer. The Chief Operating OfFicer, appointed by the trustees. is responsible for the day-to-day running of the charity, operating within the framework of the organization's policies and procedures. They have delegated authority for operational matters, including financial, employment, and HR performance, within the terms set by the trustees. Regarding setting pay and remuneration for key management personnel, the infomiation provided does not specifically outline the benchmarks, parameters, or criteria used in determining their pay. However, it states that the charity has arrangements in place for setting the pay and remuneration. ensuring fairness and compliance with relevant regulalions. Risk management is an integral part ofthe decision-making process forthe charity. The trustees regularly review risks associated with the operation of the charity, including financial, health and safety. and employment-related risks. The charity has systems and procedures in place to facilitate effective risk management. It also retains the services of a company called Citation to handle all policies and procedures pertaining to health and safety and employment law.
EVERYDAY LANGUAGE SOLUTIONS (A COMPANY LIMITED BY GUARANTEE) TRUSTEES, ANNUAL REPORT {INCLUDING THE DIRECTORS, REPORT) FOR THE YEAR ENDED 31 MARCH 2024 Structure, governance and management (continued) The reserves policy adopted by the charity is a Central component of risk management. It ensures a stable environment for both employees and beneficiaries. Additionally, the charity operates an investment policy that aims to provide a maximum retum with minimum risk. This policy is implemented in line with the Articles of Association and at the discretion of the trustees. Trustees, responsibilities The Charity is a charitable company and the Trustees are directors of the charitable company and so the Trustees are responsible for preparing financial statements in accordance with applicable law and regulations. Company law requires the Trustees to prepare financial statements for each financial year. Under that lawthe Trustees have elected to prepare the statements in accordance with Uniled Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable lawl. Thefinancial statements are required by law to give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing those financial statements, the Trustees are required to.. Select suitable accounting policies and then apply them consistently.. Make judgements and estimates that are reasonable and prudent.. and Prepare the financial statements on the going concern basis unless il is inappropriate to assume that the charity will continue on that basis. The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charitable Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other regularities. Disclosure of information to the auditors We, the Trustees of the charity who held office at the date of approval of these Financial Statements as set out above each confirm. so far as we are aware, that.. there is no relevant audit infomation of which the charity's auditors are unaware, and we have taken all the steps that we ought to have taken as Trustees in order to make ourselves aware of any relevant audit information and to establish that the charity's auditors are aware of that information. In approving the Trustees, Annual Report, we also approve the Directorfs Report included therein, in our capacity as charity Trustees. On beh the Board A Tur bull Chairman Date.. 6th August 2024
EVERYDAY LANGUAGE SOLUTIONS (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF EVERYDAY LANGUAGE SOLUTIONS Opinion We have audited the financial statements of Everyday Language Solutions {'the charitable ¢ompanWI for the year ended 31 March 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards {United Kingdom Generally Accepted Accounting Practice) including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland" In our opinion the financial statements.. give a true and fair view of the slate of the charitable company's affairs as at 31 March 2024, and of its 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 Practice, and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) {ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditols responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees, use of the going Concem 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 to events or conditions that. individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other information The other infomiation comprises the infomation included in the trustees, annual report, other than the financial statements and our auditor's report thereon. The trustee5 are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to detemiine whether this gives rise to a material misstatement in the financial statements themselves. 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 thi5 regard.
EVERYDAY LANGUAGE SOLUTIONS (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF EVERYDAY LANGUAGE SOLUTIONS Opinion on other matters prescribed by the Companies Act 2006 In our opinion based on the work undertaken in the course of Ihe audit.. the infomation given in the trustees, annual report (incorporating the directors, report) for the financial year for which the financial statements are prepared is consistent with the financial statements,. and The directors, report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors, report included within the trustees, report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion.. Adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us., or the financial statements are not in agreement with the accounting records and returns,. or certain disclosures of trustees, remuneration 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 entitled to prepare the financial statements in accordance with the small companies, regime and take advantage ofthe small companies, exemptions in preparing the directors, report and from the requirement to prepare a strategic report. Responslbilities of trustees As explained more fully in the trustees, responsibilities statement set out on page 12. the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees detemiine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements. the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations. or have no realistic alternative but to do so. Audltor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate. they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance wilh laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
EVERYDAY LANGUAGE SOLUTIONS (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF EVERYDAY LANGUAGE SOLUTIONS As part of an audit in accordance with ISAS (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We obtained an understanding of the legal and regulatory framework applicable to both the company itself and the industry in which it operates. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience and through discussion with the directors and key management personnel. The most significant identified that directly affect the financial statements include financial reporting legislation (including related companies, legislation), the Charities Act 2011 and UK taxation legislation. The company is subject to other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or IFtigation. We identified the following areas as those most likely to have such an effect- Health and Safety, Employment Law and Data Protection regulations, recognising the nature of the company's activities. We considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statements. Our audit procedures included= making enquires of directors and key management personnel as to where they consider there to be a susceptibility to fraud and whether they have any knowledge or suspicion of fraud-, obtaining an understanding of the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations-, assessing the design effectiveness of the controls in place to prevent and detect fraud; assessing the risk of management override including identifying and testing journal entries., challenging the assumptions and judgements made by management in its significant accounting estimates. Our audit did not identify any key audit matters relating to the detection of irregularities including fraud. However, despite the audit being planned and conducted in accordance with ISAS (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detecled owing to inherent limitations of Ihe audit, and that by their very nature. any such instances of fraud or irregularity likely involve collusion. forgery, intentional misrepresentations, or the override of internal controls. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at- htt s.'Ilwww.frc.or .ukl8udrtorsres onsibilities. This description forms part of our auditor's report. Use of our report This report is made solely to the charitable company's trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility lo anyone other than the charitable company and the charitable company's trustees as a body, for our audit work, forthis report, or for the opinions we have formed. John Oswald BA FCA Senior Statutory Auditor Stephenson Coates Audit Limited Chartered Accountants West 2, Asama Court Newcastle Business Parl( Newcastle upon Tyne NE4 7YD 61h August 2024 10
EVERYDAY LANGUAGE SOLUTIONS (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR END 31 MARCH 2024 UnrestTlCted funds 2024 Total Unrestricted funds 2023 Total Note Income from: Charitable activities Investments 1,495,474 3,723 1,499,197 1.353.585 3,089 1,356,674 Total income Expenditure on: Charitable activities 11,496,880) {1,496,880) (1,392,904) (1,392,904) Total expenditure Net income l (expenditure) and net movement in funds 2,317 (36,230) Reconciliation of funds: Total funds brought forward 15 373,831 410,061 Totsl funds carried fonNard 15 376,148 373,831 All income and expenditure derive from continuing activities. The statement of financial activities includes all gains and losses recognised during the year. The notes on pages page 14 - 22 form part of these financial statements.
EVERYDAY LANGUAGE SOLUTIONS (A COMPANY LIMITED BY GUARANTEE) BALANCE SHEET AS AT 31 MARCH 2024 2024 2023 Note Fixed assets Tangible assets Current assets Debtors Cash at bank and in hand 7,999 11,649 12 517,192 231.491 748,683 369.148 378,906 748,054 Creditors: amounts falling due within one year Net current assets 13 (380,534} 368,149 376,148 (385,872) 362,182 373,831 Total assets less current liabllltles Net assets 376,148 378,831 Charity Funds Unrestricted funds 15 376,148 376.148 373,831 373,831 Total charity funds 15 The financial statements were approved and authorised for issue by the Board on 6th August 2024. Signed on behalf of the board of trustees.. A Turnb Trustee Company registration number: 04384294 The notes on pages 14 - 22 fom part of these financial statements. 12
EVERYDAY LANGUAGE SOLUTIONS (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF CASH FLOWS FOR THE YEAR END 31 MARCH 2024 2024 2023 Cash flow from operating activities Net income l (expenditure) for year Interest receivable 2,317 (3,723) (36,230) (3,0891 Depreciation of tangible fixed assels {Increase) I decrease in debtors (Decrease) l increase in creditors Net cash flow from operating activities 3,918 1148,043} 15,339) 7,861 (23,738) 86,389 (150,870) 31,193 Cash flow from Investing activities Payments to acquire tangible fixed assets Interest received Net cash flow from investing activities (268) 3,723 3,455 (1,069) 3,089 2,020 Net (decrease) l increase in cash and cash equivalents 147,415 33,213 Cash and cash equivalents at 1 April 2023 378,906 345,693 Cash and cash equivalents at 31 March 2024 231,491 378.906 Cash and cash equivalents consists of: Cash at bank and in hand Cash and cash equivalents at 31 March 2024 231,491 231,491 378.906 378,906 13
EVERYDAY LANGUAGE SOLUTIONS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 MARCH 2024 Summary of significant accounting policies la) General infomiation and basis of preparation Everyday Language Solutions is a company limited by Guarantee in the United Kingdom. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity. The address of the registered office is Carbury House Concorde Way, Preston Farm, Stockton On Tees, England, TS18 3TB. The nature of the charity's operations and principal activities are provision of professional, confidential, impartial interpretation, translation service for the North East region of England serving community groups, individuals and local service providers. The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021 issued in October 2019. the Charities Act 2011, the Companies Act 2006, and UK Generally Accepted Practice. The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest £. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. (b) Funds Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. (c) Income recognition All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is legally entitled to the income after any perfomiance conditions have been met, the amount can be measured reliably and it is probable that the income will be received. Income from trading activities includes income earned from interpretation and translation fees to raise funds for the charity. Income is received in exchange for supplying services in order to raise funds and is recognised when entitlement has occurred. Investment income includes interest which is recognised when receivable. 14
EVERYDAY LANGUAGE SOLUTIONS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 MARCH 2024 Summary of significant accounting policies (continued) (dl Expenditure recognition All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings= Expenditure on charitable activities represents costs of supplying translation services to organisations including management and administration support costs-, and Olher expenditure represents those items not falling into the categories above. le) Support costs allocation Support costs are those that assist the work of the charty but do not directly represent charitable activities and include office costs, governance costs, and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out at Head office. Where support costs cannot be directly attributed to particular headings they have been allocated to other expenditure on a basis consistent with use of the resources. (fj Tangible fixed assets Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impaimient losses. Cost includes costs directly attributable to making the asset capable of operating as intended. Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows.. Computer Equipment Fixtures and fittings 33 % Straight line 150/0 Reducing balance Ig) Debtors and creditors re¢elvable I payable within one year Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impaiment are recognised in expenditure. (h) Provisions Provisions are recognised when the charity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated. (i) Leases Rentals payable and receivable under operating leases are charged to the SOFA on a straight line basis over the period of the lease. 15
EVERYDAY LANGUAGE SOLUTIONS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 MARCH 2024 Summary of significant accounting policies (continued) li) Employee benefits When employees have rendered service to the charity. short-term employee benefrts to which the employees are entitled are recognised at the undiscounted amountexpected to be paid in exchange for that service. The charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable. {k) Tax The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. (l) Going concern The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial stslements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern. (m) Judgements and key sources of estlmatlon uncertainty The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. There are no key sources of estimation uncertainty to report that have a significant risk of causing a material adjustment to the financial statements. Income from charitable activities 2024 2023 Interpretation and translation services 1.495,474 1,495,474 1,353.585 1,353.585 Income from charitable activities was £1,495,474 {2023 - £1,353,585) of which £1,495,47412023 - £1,353,585) was attributable to unrestricted funds. 16
EVERYDAY LANGUAGE SOLUTIONS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 MARCH 2024 Income from investments 2024 2023 Interest- deposits 3,723 3,723 3,089 3,089 Analysis of expenditure on charitable activities Activities undertaken directly SLrpport costs Total 2024 Total 2023 Language Services 1,159,598 337,282 1,496,880 1,392,904 1,159,598 337,282 1,496,880 1,392,904 £1,496,88012023 - £1,392,904) of the above costs were attributable to unrestricted funds. Allocatlon of support costs Support costs Basis of allocation Language SeNi¢es 2024 Total 2023 Total Management and finance staff Service costs Rent Depreciation of assets Legal and professional Administration costs Bank charges Sundry Time Area Area Usage Usage Usage Usage Usage 265,806 15,924 19,008 3,918 7,619 20.661 524 3,822 265.806 15,924 19,008 3,918 7,619 20,661 524 3,822 242.610 12.926 19,008 7,861 8,140 18,707 550 4,008 Total 337,282 337.282 313.810 17
EVERYDAY LANGUAGE SOLUTIONS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 MARCH 2024 Governance costs Governance costs comprise Trustees, remuneration, Trustees, expenses and Auditors, remuneration. See Note 8 and 9 for details. Net expenditure for the year Net expenditure is stated after charging.. 2024 2023 Depreciation of tangible fixed assets Operating lease rentals 3,918 24,919 7,861 24,527 Auditor's remuneration 2024 2023 Audit of the financial statements 2,500 2,500 Trustees. and key management personnel remuneration and expenses The Trustees, neither received nor waived any remuneration during the year {2023'. £Nil). The Trustees, did not have any expenses reimbursed during the year {2023.. £Nil). The total amount of employee benefits received by key management personnel is £71,364 (2023 - £71,115). The Trust considers its key management personnel compromise the Chief Operating Officer and Chief Finance Officer. 18
EVERYDAY LANGUAGE SOLUTIONS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 MARCH 2024 10 Staff costs and employee benefits The average monthly number of employees and full time equivalent IFTE) during the year was as follows: 2024 Number 2024 FTE 2023 Number 2023 FTE Charitable activilies (including management and finance) The total staff costs and employees benefits were as follows.. 2024 2023 Wages and salaries Social security Defined contribution pension costs 241,433 14,476 8,964 264,873 218,130 13,fA4 8,567 240,341 No employees received total employee benefits (excluding employer pension costs) of more than £60,000 (2023.. Nil). 19
EVERYDAY LANGUAGE SOLUTIONS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 MARCH 2024 11 Tangible fixed assets Fixtures Computer and fittings equipment Total Cost or valuation.. At 1 April 2023 Additions 15,037 89,209 268 104,246 268 At 31 March 2024 15.037 89.477 104.514 Depreciation.. At 1 April 2023 Charge forlhe year 9,426 83,171 92,597 3,076 3,918 At 31 March 2024 10,268 86,247 96,515 Net book value: At 31 March 2024 4,769 5.611 3,230 6,038 7,999 11,649 At 31 March 2023 12 Debtors 2024 2023 Trade debtors Other debtors 475,395 41,797 351,087 18.061 517,192 369,148 13 Creditors: amounts falling due within one year 2024 2023 Trade creditors Other tax and social security Accruals and deferred income 209.489 141,326 29,719 224.167 140.443 21,262 380,534 385,872 20
EVERYDAY LANGUAGE SOLUTIONS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 MARCH 2024 14 Leases Operating leases - lessee Total future minimum lease payments under non-cancellable operating leases are as follows.. 2024 2023 Not later than one year Later than one and not later than five years Later than five years 25,572 25,572 15 Fund reconciliation Unrestricted funds For the ear ended 31 March 2024 Balance at 1 April 2023 Balance at 31 March 2024 Income Expenditure Unreslricted 373,831 373.831 1499 197 1,496.880 1.496,880 376 148 1,499,197 376,148 For the ear ended 37 March 2023 Balance at 1 April 2022 Balance at 31 March 2023 Income Expenditure Unrestricted 410,061 410,061 1,356,674 1,356.674 1,392,904 1,392,904 373,831 373.831 21
EVERYDAY LANGUAGE SOLUTIONS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 MARCH 2024 16 Analysis of net assets between funds Unrestricted funds 2024 2023 Fixed assets 7,999 11,649 231,491 378,906 517,192 369,148 1380,5341 (385,872) Cash and cash equivalents Other current assets Creditors less than one year Total 376,148 373,831 17 Pensions and other post-retirement benefits The charity operates a defined contribution pension plan for its employees. The amount recognised as an expense in the period was £8.964 (2023 - £8,567). The defined contribution liability is allocated to unrestricted funds and charitable activities. 18 Related party transactlons There are no related party transactions during the period (2023.. £Nil). 19 Flnancial instruments The carrying amounts of the charity's financial instruments are as follows.. 2024 2023 Financial assets Debt instruments measured at amortised cost: Trade debtors (note 12) Financi81 liabilities 475 395 351087 Measured at amortised cost Trade creditors (note 13) 209 489 224 167 22