2023-03-31-accounts - Working Families

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WORKING FAMILIES

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED

31 MARCH 2023

Registered Charity No. 1099808 (England & Wales) and SC045339 (Scotland) Registered Company (No. 04727690).

WORKING FAMILIES CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

Reference and administrative details	1
Trustees’ report	2
Independent auditor’s report	9
Statement of financial activities	13
Balance sheet	14
Statement of cash flows	15
Notes to the financial statements	16

WORKING FAMILIES REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 MARCH 2023

Trustees

Helen Humphreys Rebecca McGowan Clare Corbett Paul Coulson Prajakta Datar (appointed 7 July 2022) Michael Dunson-Odusanya (appointed 12 August 2022) Tessa MacArthur David Robson Kate Shaw Steve Toft Amy Town Helen Tupper (resigned 30 March 2023)

Honorary officers

Helen Humphreys (Chair) Rebecca McGowan (Treasurer)

Chief Executive

Jane van Zyl

Registered office

Buzzacott LLP 130 Wood Street London EC2V 6DL

Charity registration number (England and Wales) 1099808

Charity registration number (Scotland)

SC045339

Company registration number 04727690

Auditor

Buzzacott LLP 130 Wood Street London EC2V 6DL

Bankers

CAF Bank Ltd 25 Kings Hill Avenue, Kings Hill West Malling Kent ME19 4JQ

WORKING FAMILIES TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

The trustees, who are directors of the company for the purposes of the Companies Act, present their report with the financial statements of Working Families (the “charity”) for the year ended 31 March 2023.

The financial statements have been prepared in accordance with the principal accounting policies set out on pages 16 to 18 and comply with the requirements of the Companies Act 2006, the Charity’s Memorandum and Articles of Association, applicable laws, 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 United Kingdom and Republic of Ireland (FRS 102).

Objectives and activities

Objectives

Working Families is the UK’s national charity for working parents and carers. The charity has the following objectives:

The promotion and advancement of the physical and mental health and well-being of working families and carers;
The relief of working families in need by reason of age, ill health, disability, financial hardship or other disadvantage; and
Advancing public education (particularly amongst employers and employees) about all aspects of alternative and flexible working patterns and practices.

Including (but without limitation) by:

promoting and advancing better working practices; and
providing information, advice, guidance and counselling for people in work or seeking work including about their rights and entitlements and the provision of care for dependents (including those with disabilities)

where “working families” means working parents; grandparents and/or guardians or carers, and the children and other dependents for whom they are providing care or support.

Activities

The charity carries out the following activities in order to satisfy its charitable objectives:

Providing free legal advice to parents and carers on their rights at work;
Providing employers with support to create flexible, family-friend workplaces;
Influencing policy; and
Advocating on behalf of working parents and parents across the United Kingdom.

Public benefit

The trustees confirm that they have referred to the Charity Commission’s general guidance on Public Benefit when reviewing and shaping the charity’s aims and objectives for the year and planning future activities. The charity works to ensure that its programmes are inclusive, accessible and responsive to the needs of its beneficiaries.

WORKING FAMILIES TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Achievements and performance

Working Families is the UK’s national charity for working parents and carers. Our mission is to remove the barriers that people with caring responsibilities face in the workplace. We provide free legal advice to parents and carers on their rights at work. We give employers the tools they need to support their people while creating a flexible, high-performing workforce. And we advocate on behalf of the UK’s 17.5 million working parents and carers, influencing policy through campaigns informed by ground-breaking research.

Our 2021-2024 strategy has set out three key aims: empowering working parents and carers, supporting employers, and driving policy change. Below are some highlights on how we furthered these goals in 2022-2023:

Empowering working parents and carers

Our Legal Advice Service continued to provide award-winning free advice for working parents and carers—over e-mail, through the telephone helpline, and through hundreds of articles on the Working Families website. We responded to 1,662 people with bespoke advice and had at least 932,724 unique visitors to our legal advice pages (we believe the latter is significantly underestimated due to new cookie consents that were introduced in December).
With the backdrop of the cost-of-living crisis, we developed and expanded our benefits check/’better off’ calculation service, which has so far calculated nearly £100,000 of eligible (unclaimed benefits), averaging £5000 per case.
We delivered a flexible working masterclass webinar with our ambassador and flexible working campaigner Anna Whitehouse as part of National Work Life Week
We continued our collaboration with our partners at Pregnant Then Screwed and delivered three interactive legal clinics via Instagram, with a total of over 30,000 views.
We updated and enriched our 250+ webpages, including significantly expanding our tribunal support resources and webpages to support those struggling to navigate the tribunal system without representation.

Supporting employers

In 2022-23, the Employer Services team brought in 25 new employer members, for a total of 160 members of all sizes and from a diverse range of sectors.
We held 13 events for employers, on a wide range of topics including support for SMEs, exploring the experience of managers during COVID, support for fathers, addressing gender inequality, supporting families in site-based sectors, and making job-sharing work.
We had 76 entries to our comprehensive and one-of-a-kind top employers Benchmark and delivered detailed feedback to the 51 members who qualified, supporting our employer members to create and sustain flexible and family-friendly workplaces.
We had 91 Best Practice Awards entries from 59 different employers. This has proven a good way to attract new members and to celebrate the very best in employer practice.
We conducted research on the importance of flexible recruitment, as well as the needs of parents and carers working in site-based sectors. Both pieces of research will inform how we support employers in the future and help us continue to build the business case for flexible working.

WORKING FAMILIES TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Driving policy change

2022-23 saw a major legislative victory for Working Families: the introduction and progression of the Flexible Working Bill. Working Families proposed a bill strengthening flexible working ahead of the Private Members’ Bill ballot. Yasmin Qureshi MP took the bill forward, and worked closely with the Working Families team to shape it. The bill is expected to pass with cross-party support, and when it does, it will provide employees with a day one right to request flexible working; remove the requirement for the requestee to explain how the arrangement will work; enable an employee to make two requests each year; reduce the processing time for requests from three months to two; and require a consultation between employee and employer if an employer wishes to reject a request.
Working Families was also closely involved with the Neonatal Leave and Pay Bill, the Carer’s Leave Bill, and the Redundancy Protection Bill, feeding into discussions to ensure that as many working parents and carers as possible benefit from the legislation. The Neonatal Leave and Pay Bill will provide additional leave and pay for employees caring for infants receiving neonatal care; the Carer’s Leave Bill will give working carers the right to five days of additional leave from day one of employment; and the Redundancy Protection Bill will require employers to offer any suitable and available vacancy to pregnant employees and returning parents whose jobs are at risk of redundancy. All three bills are expected to become law.
We supported all of our influencing work with data from the Working Families Index , a longstanding piece of research that we refreshed and rebranded in 2022-2023 after a hiatus during the height of COVID. The report highlighted the worsening financial situation for working parents and carers, as well as inequalities in who has access to flexible working and who does not. The Index , along with the queries we receive on our helpline, allows us to see the areas in which working parents and carers are struggling the most, and take action to address them.

Plans for future periods

As the charity enters the last year of its three year strategy (21 – 24), the trustees have formed a Task & Finish Committee to review the impact of the current strategy and build a new strategy active from 1st April 2024. Working Families will continue to empower working parents and carers through our legal advice helpline, continue to support employers to build and create flexible and family friendly workplaces and use those views – what we can see is not working and what is possible – to positively influence public policy. The charity eagerly anticipates the Flexible Working Bill, due to come into effect in 2024.

With the significant success the charity has had with private members’ bills in this parliament, Working Families has agreed to deliver the secretariat for an All-Party Parliamentary Group on Flexible Working. This will enable us to deepen our connection with parliamentarians on both sides of the House and allow our employer members access to influence policy. The Working Families index Spotlight Report focusing on working parents and carers with a household income of £50k and under, has confirmed our commitment to support working parents with least access to justice, through our legal advice helpline. We still have an ambition to work with Small and Medium-sized Enterprises, who employ the largest number of adults within the UK. We continue to explore opportunities to collaborate and develop partnerships to help us accelerate or amplify our impact.

WORKING FAMILIES TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Financial Review

Results for the financial period

A summary of the results for the period can be found on page 13 of this report and accounts. During the year, total income amounted to £1,047,791 (2022: £958,496). Income from grants and donations amounted to £441,893 (2022: £288,125), income from charitable activities amounted to £543,456 (2022: £589,156), and income from other trading activities amounted to £62,442 (2022: £81,215).

Total expenditure for the year amounted to £1,041,355 (2022: £965,308). Expenditure on raising funds totalled £64,932 (2022: £53,978) and expenditure on charitable activities amounted to £976,423 (2022: £911,330). This results in a net surplus and net increase in funds during the year of £6,436 (2022: net deficit and net reduction of funds of £6,812).

Financial position

The balance sheet shows total funds of £294,198 (2022: £287,762). All funds at the year end and the previous year end were held in the general (unrestricted) fund. Therefore free reserves available to meet general expenditure, are £294,198 (2022: £287,762).

Reserves policy

The Trustees seek to hold reserves sufficient to ensure the financial security of the charity and our ongoing ability to meet our charitable objectives. The charity will hold minimum reserves sufficient to cover the costs of a winding up the charity and discharging our obligations to staff and creditors in full. At 31 March 2023 the Trustees assessed this minimum threshold to be £60,000, should reserves fall to less than 20% above this minimum threshold the Trustees will put in place a detailed monitoring and management plan. The charity will hold a maximum level of reserves sufficient to cover 6 months charity expenditure plus a reserve to cover the development of future opportunities to fulfil our charitable objectives. At 31 March 2023 the Trustees assessed this maximum threshold to be £582,000, should reserves rise above this threshold the Trustees will put in place an action plan to develop opportunities to use any surplus to fulfil our charitable objective. The reserves held at 31 March 2023 of £294,198 fell within the Trustees’ agreed range.

WORKING FAMILIES TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Governance, structure, management, and relevant policies

Recruitment, appointment, and induction of new trustees

Working Families appoints trustees on the basis of the skills and experience they can bring to the custodianship and management of the business and its activities. All prospective trustees, who are also directors of the company, are recruited from a range of external sources and by public advertisement and are appointed or co-opted after a formal interview process. Recommendations from the interview panel are voted on at a Board meeting in accordance with our Memorandum and Articles of Association. Each new trustee is offered mentoring by an existing trustee, provided with full induction information, and offered relevant training. The trustees who served throughout the year are detailed on page 1.

Statement of trustees’ responsibilities

The trustees (who are also directors of Working Families for the purposes of company law) are responsible for preparing the trustees’ report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the income and expenditure of the charitable company and group for that period. In preparing these financial statements, the trustees are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in 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);
make judgements and estimates that are reasonable and prudent;
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Each of the trustees confirms that:

so far as the trustee is aware, there is no relevant audit information of which the charitable company’s auditor is unaware; and
the trustee has taken all the steps that he/she ought to have taken as a trustee in order to make himself/herself aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

WORKING FAMILIES TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Risk management

The trustees regularly review risks to ensure appropriate mitigation is in place. The Board also undertakes an annual review of risk appetite to ensure our approach to risk management is managing risk to the right level. The Trustees have ensured the Business Plan focuses on Working Families being financially sound, well governed and a best practice employer. Key steps towards this have included:

Tight budgetary control, including monthly meetings by the Finance and Risk Committee
A focus on Employer Services as the major unrestricted income contributor to the charity
A 5% increase in the cost of joining Working Families as an employer member to protect income streams during an inflationary period
A salary increase of 5% across the whole staff team to support staff retention and engagement
Appointment of two trustees with broad digital knowledge and experience

Working Families appointed JS2 as its accountants and appointed Buzzacott LLP, as auditors in 2019 following a tender process.

Key management personnel

The charity is governed by a Board of Trustees. Day to day running of the charity is delegated to the Chief Executive. The charity is staffed by paid employees, supported by volunteers as well as by professionals giving their time and expertise pro bono. The salary for the key management personnel – the CEO – is reviewed annually by our People & Governance Committee (a committee of our board of trustees), taking into account industry standards. This Committee makes a recommendation to the Board.

Committees

The Finance and Risk Committee of the Board meets monthly to monitor financial performance and risk.
The People and Governance Committee is responsible for the charity’s governance and ensuring that Working Families is a best practice employer for its size and sector, and for settling any specific disciplinary or grievance issues which may arise during the year. It meets monthly or as required.
The Business Development & Fundraising Committee reviews the charity’s business development and fundraising plans to support the charity’s ability to meet its aims.

WORKING FAMILIES TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Fundraising policy

The charity aims to achieve best practice in the way in which it communicates with donors and other supporters. The charity takes care with both the tone of its communications and the accuracy of its data to minimise the pressures on supporters. It applies best practice to protect supporters’ data and never sells data, it never swaps data and ensures that communication preferences can be changed at any time. The charity manages its own fundraising activities and does not employ the services of professional fundraisers. The charity undertakes to react to and investigate any complaints regarding its fundraising activities and to learn from them and improve its service. During the year, the charity received no complaints about its fundraising activities.

Approved and authorised for issue by the Board of Trustees and signed on its behalf on 20 July 2023 by:

Helen Humphreys, Chair

Rebecca McGowan, Treasurer

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WORKING FAMILIES

Opinion

We have audited the financial statements of Working Families (the ‘charitable company’) for the year ended 31 March 2023 which the comprise the statement of financial activities, the balance sheet, statement of cash flows, the principal accounting policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the charitable company’s affairs as at 31 March 2023 and of the charitable company’s 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 auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may 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 trustees are responsible for the other information. The other information comprises the information included in the annual report and financial statements, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WORKING FAMILIES (CONTINUED)

Opinions on other matters 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 trustees’ report, which is also the directors’ report 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 trustees’ report, which is also the directors’ report for the purposes of company law, has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept by the charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
the charitable company 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 take advantage of the small companies exemptions from the requirement to prepare a strategic report.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the 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.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WORKING FAMILIES (CONTINUED)

How the audit was considered capable of detecting irregularities including fraud.

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

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the charitable company through discussions with trustees and other management, and from our commercial knowledge and experience of the sector;
we focused on specific laws and regulations in both the UK and overseas, which we considered may have a direct material effect on the financial statements or the operations of the charitable company, including the Charities Act 2011, the Companies Act 2006, data protection legislation, anti-bribery, employment, safeguarding principles, health and safety legislation;
we considered the impact of the international nature of the charitable company’s operations on its compliance with laws and regulations;
the charitable company utilises local auditors to audit the financial information in each of countries in which it operates. We communicated our perception of material risk in respect of irregularities to the local auditors and obtained details of the work that they carried out in response to this;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team and the team remained alert to instances of non-compliance throughout the audit.

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

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

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

performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounting policies were indicative of potential bias; and
used data analytics to investigate the rationale behind any 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 to underlying supporting documentation;
reading the minutes of meetings of management and those charged with governance;
obtaining details of work carried out by local auditors in connection with compliance with local laws and regulations;
enquiring of management as to actual and potential litigation and claims; and
reviewing any available correspondence with HMRC and the company’s legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WORKING FAMILIES (CONTINUED)

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 is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Hugh Swainson (Senior Statutory Auditor) Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL

Date: 23 August 2023

WORKING FAMILIES STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted Notes £ Income from: Grants and Donations 2 160,356 Charitable Activities 3 543,456 Other trading activities 4 62,442 Total income 766,254 Expenditure on: Charitable activities 5 694,886 Cost of raising funds 64,932 Total expenditure 759,818 6 6,436 Reconciliation of funds: Total funds brought forward 287,762 Total funds carried forward 294,198 Net income/ (expenditure) & net movement in funds	Restricted £ 281,537 - - 281,537 281,537 - 281,537 - - -	Year to 31 March 2023 Total £ 441,893 543,456 62,442 1,047,791 976,423 64,932 1,041,355 6,436 287,762 294,198	Unrestricted £ 117,706 589,156 81,215 788,077 704,096 53,978 758,074 30,003 257,759 287,762	Year to 31 March 2022 Restricted Total £ £ 170,419 288,125 - 589,156 - 81,215 170,419 958,496 207,234 911,330 - 53,978 207,234 965,308 (36,815) (6,812) 36,815 294,574 - 287,762

The notes on the following pages form part of these financial statements

WORKING FAMILIES (Registered Company No. 04727690) BALANCE SHEET AS AT 31 MARCH 2023

		2023	2022
	Notes	£	£
Fixed assets:
Investments	11	-	-
Current assets:
Debtors	12	150,184	121,722
Cash at bank and in hand		539,483	586,130
		689,667	707,852
Liabilities:
Creditors: amount falling due within one year	13	(395,469)	(420,090)
Net current assets		294,198	287,762
Net assets		294,198	287,762
The funds of the charity:
Restricted income funds	16	-	-
Unrestricted income funds:
General funds		294,198	287,762
Total charity funds:		294,198	287,762

Approved by the trustees on 20 July 2023 and signed on their behalf by:

Helen Humphreys Chair

Rebecca McGowan Treasurer

The notes on the following pages form part of these financial statements

WORKING FAMILIES STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

Net income / (expenditure) for the reporting period (as per the statement of financial activities) (Increase) in debtors (Decrease) / increase in creditors Net cash (used in) / provided by operating activities Net cash provided by investing activities Change in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year Analysis of cash and cash equivalents Cash in hand and at bank Total cash and cash equivalents	At 1st April 2022 £ 586,130 586,130		2023 £ 6,436 (28,462) (24,621) (46,647) - (46,647) 586,130 539,483 Cash Flows £ (46,647)	2022 £ (6,812) (6,060) 54,642 41,770 8,500 50,270 535,860 586,130 At 31st March 2023 £ 539,483 539,483


			(46,647)

The charity held no debt during the period, as such the above analysis of cash and cash equivalents serves as a reconciliation of changes in net debt.

The notes on the following pages form part of these financial statements

WORKING FAMILIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1. Accounting policies

Basis of preparation

These financial statements have been prepared for the year to 31 March 2023. Comparative information reflects the year to 31 March 2022.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)- (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The financial statements are presented in sterling and are rounded to the nearest pound.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

Public benefit entity

The charitable company meets the definition of a public benefit entity under FRS 102.

Going concern

The trustees consider that there are no material uncertainties about the charitable company’s ability to continue as a going concern.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

Critical accounting estimates and areas of judgement

Preparation of the accounts requires the trustees and senior management to make significant judgements and estimates over the allocation of overheads and governance costs between charitable expenditure categories and fundraising costs. There are no other significant estimates or judgements.

Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objects of the charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors 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. Statutory grants which are given as contributions towards the charity’s core services are treated as unrestricted.

WORKING FAMILIES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1. Accounting policies (Continued)

Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance 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.

Income received in advance of the provision of a specified service or the delivery of other performance conditions, is deferred until the criteria for income recognition are met.

Income from memberships is recognised over the period of the membership.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Expenditure on charitable activities includes the costs of undertaken to further the purposes of the charity and their associated support costs.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Allocation of support costs

Expenditure is allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned based on an estimate of staff time attributable to each activity.

Fund accounting

Unrestricted general funds represent those monies which are freely available for application towards achieving any charitable purpose that falls within the charitable company’s charitable objects.

The restricted funds are monies raised for, and their use restricted to, a specific purpose, or donations subject to donor imposed conditions.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aims and use of each designated fund is set out in the note to the financial statements.

Investments

Investments comprise funds provided to an associated charity, Child Concern Consortium. This investment is held at cost less impairment.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

WORKING FAMILIES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1. Accounting policies (Continued)

Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Financial Instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Pension

The charity is part of an occupational pension scheme, which is a defined contribution scheme. The cost of contributions payable by the charity to the scheme is charged to the income and expenditure account as incurred.

Operating Leases

Rentals payable under operating leases are charged against income on a straight line basis over the lease term.

2. Income from grants and donations

Trusts and Foundations Donations	Unrestricted £ 103,490 56,866 160,356	Restricted £ 281,537 - 281,537	2023 Total £ 385,027 56,866 441,893	2022 Total £ 228,619 59,506
				288,125

In the prior year, £170,419 of Trust and foundation income was restricted. All other income from grants and donations was unrestricted.

3. Income from charitable activities

Employer membership Consultancy and Training Other income	Unrestricted £ 503,731 33,802 5,923 543,456	Restricted £ - - - -	2023 Total £ 503,731 33,802 5,923 543,456	2022 Total £ 478,296 109,781 1,079
				589,156

All income from charitable activities in the prior year was unrestricted.

WORKING FAMILIES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

4. Income from other trading activities

Sponsorships	Unrestricted £ 62,442 62,442	Restricted £ - -	2023 Total £ 62,442 62,442	2022 Total £ 81,215
				81,215

All income from trading activities in the prior year was unrestricted.

5. Analysis of expenditure

Current Year Services for employers Legal advice service Policy and research Charitable activities Fundraising Support costs Total expenditure Prior Year Charitable activities Services for employers Legal advice service Policy and research Charitable activities Fundraising Support costs Total expenditure Support costs comprise: Staff costs Other staff costs Marketing and Comms IT costs Premises costs Finance, office and admin costs Governance - audit fee Total support costs	Staff costs £ 290,243 296,656 113,808 700,707 53,070 74,503 828,280 Staff costs £ 278,964 246,750 105,590 631,304 42,095 58,473 731,872	Other direct costs £ 43,131 22,581 25,912 91,624 2,925 118,526 213,075 Other direct costs £ 68,049 29,185 27,064 124,298 2,708 106,430 233,436	Support costs £ 71,533 84,504 28,055 184,092 8,937 (193,029) - Support costs £ 63,740 62,895 29,093 155,728 9,175 (164,903) - 2023 £ 74,503 8,219 46,781 11,232 - 44,344 7,950 193,029	Total 2023 £ 404,907 403,741 167,775
				976,423 64,932 -
				1,041,355
				Total 2022 £ 410,753 338,830 161,747
				911,330 53,978 -
				965,308
				2022 £ 58,473 5,382 36,262 5,358 1,095 50,688 7,645
				164,903

WORKING FAMILIES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

6. Net income for the year

This is stated after charging Staff costs Operating lease costs Audit	2023 £ 828,280 - 7,950	2022 £ 731,872 - 7,645

7. Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Staff costs were as follows:

Salaries and wages Social security costs Pension contributions	2023 £ 732,496 58,817 36,967 828,280	2022 £ 653,059 40,426 38,387
		731,872

One employee earned between £60,000 and £70,000 during the year exclusive of employer pensions and employer National Insurance contributions. (2022: One employee earned between £60,000 and £70,000).

The key management personnel comprise the Chief Executive. The total employee benefits including employer pension contributions and employer national insurance contributions of the key management personnel was £80,484 (2022: £75,999).

The amounts paid to the Chief Executive Officer were:

Gross salary Employer's NIC Employer's pension	2023 £ 68,445 8,617 3,422 80,484	2022 £ 65,000 7,749 3,250
		75,999

The charity trustees were not paid or received any other benefits from employment with the charity in the year (2022: £nil).

During the year, two trustees were reimbursed a total of £87 for costs incurred in relation to their role as trustee (2022: two trustees were reimbursed a total of £128).

WORKING FAMILIES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

8. Staff numbers

The average number of employees (head count based on number of staff employed) during the year was as follows:

Charitable Activity Fundraising Support Governance	2023 2022 23.5 20.8 1.2 1.9 2.5 2.8 0.1 0.1 27.3 25.6

9. Related party transactions

In the prior year ended 31 March 2022, a donation of £37,200 was received from Child Concern Consortium - an associated charity.

Aggregate donations of £3,170 were received from trustees and key management personnel during the year ended 31 March 2023 (2022 : £2,290). There are no other related party transactions including donations from related parties which are outside the normal course of business.

10. Taxation

The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The subsidiary, Working Families Trading Limited, donates all its taxable profits to Working Families, and therefore pays no corporation tax.

11. Investment in Child Concern Consortium (CCC)

Until 31 March 2022 Working Families was a member and investor in the ‘Child Concern Consortium’ (Registered charity number 1103052). The decision was made to close the consortium effective from 31 March 2022, therefore the value of the investment in the consortium was written down to nil as at 31 March 2022.

12. Debtors

Debtors
Trade debtors Prepayments Accrued income	2023 £ 140,155 7,529 2,500 150,184	2022 £ 98,562 5,960 17,200
		121,722

WORKING FAMILIES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

13. Creditors: amounts falling due within one year

Trade creditors Deferred income VAT creditor Accruals Other creditors 14. Deferred income Balance at the beginning of the year Amount released to income in the period Amount deferred in the year Balance at the end of the year	2023 £ 13,061 316,614 30,220 11,975 23,599 395,469 2023 £ 316,203 (291,707) 292,118 316,614	2022 £ 39,217 316,203 37,831 10,770 16,069
		420,090
		2022 £ 273,134 (273,134) 316,203
		316,203

Deferred income comprises membership fees paid in advance.

15. Analysis of net assets between funds As at 31 March 2023 Net current assets Net assets at the end of the year As at 31 March 2022 Net current assets Net assets at the end of the year	£ 294,198 294,198 £ 287,762 287,762 Unrestricted Unrestricted	£ - - £ - - Restricted Restricted	Total funds £ 294,198
			294,198
			Total funds £ 287,762
			287,762

WORKING FAMILIES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

16. Movements in funds 2023

Restricted funds: Legal Advice Service Trust for London Policy & Research Total restricted funds Unrestricted funds: General funds Total funds	At the start of the year £ - - - - 287,762 287,762	Income £ 152,073 36,750 92,714 281,537 766,254 1,047,791	£ (152,073) (36,750) (92,714) (281,537) (759,818) (1,041,355) Expenditure	At the end of the year £ - - -
				- 294,198
				294,198

Legal Advice Service

Grants and donation funding to provide free legal advice to parents and carers on their rights at work.

Trust for London

Funding to support Working Families work across the Legal advice service and policy work.

Policy and Research Fund

Funding towards the Research and Policy Manager role.

Movements in funds 2022

Movements in funds 2022
Restricted funds: Legal Advice Service Trust for London Policy & Research Total restricted funds Unrestricted funds: General Funds Total funds	At the start of the year £ 25,000 11,815 - 36,815 257,759 294,574	Income £ 55,150 33,500 81,769 170,419 788,077 958,496	£ (80,150) (45,315) (81,769) (207,234) (758,074) (965,308) Expenditure	At the end of the year £ - - -
				- 287,762
				287,762

17. Ultimate control

The charitable company is controlled by its trustees.