## WORKING FAMILIES ## ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED ## 31 MARCH 2025 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 2025** |Reference and administrative details|1| |---|---| |Trustees’ report|2| |Independent auditor’s report|8| |Statement of financial activities|12| |Balance sheet|13| |Statement of cash flows|14| |Notes to the financial statements|15| ## **WORKING FAMILIES REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 MARCH 2025** ## **Trustees** Helen Humphreys Rebecca McGowan Clare Corbett Paul Coulson Prajakta Datar Michael Dunson-Odusanya David Robson Steve Toft Neha Kulkarni (appointed 15 July 2024) Charlotte Wayne (appointed 5 July 2024) Gordon Whyte (appointed 5 July 2024) Kate Shaw (resigned 25 July 2024) ## **Honorary officers** Helen Humphreys (Chair) Neha Kulkarni (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 Audit LLP 130 Wood Street London EC2V 6DL ## **Bankers** CAF Bank Ltd 25 Kings Hill Avenue, Kings Hill West Malling Kent ME19 4JQ 1 **WORKING FAMILIES TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2025** ## STRATEGIC REPORT 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 2025. The financial statements have been prepared in accordance with the principal accounting policies set out on pages 15 to 17 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-friendly 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. 2 **WORKING FAMILIES TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025** ## 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 new strategic framework, 2024-2029 sets 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 2024-5: ## Empowering working parents and carers - Working Families free legal advice service was established in 1999. We prioritise a deescalatory approach, helping people with caring responsibilities to remain in work wherever possible and appropriate. - 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. - Through our website, we reached more than 1 in 10 parents in the UK – that’s 1,652,305 unique visitors. Our website empowers parents/carers to help themselves, reserving our helpline for those with the thorniest problems or who are in greatest need. - We responded to 1,509 queries. Over three quarters of our helpline users met our definition of having least access to justice, presented with a more complex or cluster problem that couldn’t be resolved via our website alone, were in receipt of in work benefits and/or had a household income of less than £50,000. - Our benefits check/’better off’ calculation service, which pre-covid consisted of 15% of queries, rose to 40% during covid, have now dropped back to 25%, which reflects the cost of living crisis. - More than 90% of our service users resolved their work issue and/or increased their household income. ## Supporting employers - In 2024-5, the Employer Services team secured 23 new employer members, bringing the total to 120 members of all sizes and from a diverse range of sectors. - We held 14 events for employers, attended by a total of 781 people, on a wide range of topics including neonatal care - exploring the new bill & best practice for employers, best practice support for working fathers/co-parents, wellbeing in the workplace and normalising job shares. - We delivered 12 lunch & learns to a variety of employers on themes such as supporting parents & carers and top tips for flexible working. - We had 69 entries to our comprehensive and one-of-a-kind Top Employers Benchmark and delivered detailed feedback to the 55 members who qualified, supporting our employer members to create and sustain flexible and family-friendly workplaces. - We had 69 Best Practice Awards entries from 45 different employers, including 33 nonmember entries. This has proven a good way to celebrate the very best in employer practice. - We launched the Family Inclusive Workplaces certification in the UK, in partnership with Family Friendly Workplaces. This is a pioneering certification programme designed to set new benchmarks for family-friendly workplaces, which provides employers with a rigorous, 3 **WORKING FAMILIES TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025** evidence-based framework to assess and enhance their policies, ensuring they support employee wellbeing, promote inclusivity, and contribute to business success. ## Driving policy change - 2022-24 saw the culmination of Working Families’ efforts to work with Parliamentarians on a series of Private Members’ Bills resulting in the passing of the following Acts between May and September 2023: - Employment Relations (Flexible Working) Act - Carers Leave Act - Protection from Redundancy (Pregnancy & Family Leave) Act - Workers (Predictable Terms and Conditions) Act - Neonatal Care Leave and Pay Act - In April 2024, the first three pieces of legislation have been implemented representing a major legislative victory for Working Families. Employees now have a day one right to request flexible working via an improved process; a right to take 5 days of unpaid carers leave and extended redundancy protections following periods of maternity and shared parental leave. In September 2024 workers with insecure contracts have the right to request a predictable contract. The Neonatal Care Leave and Pay Act came into effect in April 2025. - The Flexible Working Taskforce and the Department for Business and Trade adopted our Happy to Talk Flexible Working logo as part of their promotional activities for the new flexible working regulations. - Additionally, following our letter to Minister Kemi Badenoch regarding our concerns over the Retained EU Law Bill, the Government Equalities Office confirmed that they had amended the Equality Act, via statutory instrument, to ensure that several EU related protections would be enshrined into UK law. These related to equal pay and protections from unfavourable treatment due to breastfeeding or maternity leave. - In March 2025, the Minister for Employment Rights, Competition and Markets, Justin Madders, supported the launch of Family Friendly Workplaces Certification. ## Plans for the future The new strategic framework, starting from 1st April 2025 maintains Working Families mission. The charity 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. With the significant success the charity has had with private members’ bills in the last parliament, Working Families has agreed to deliver the secretariat for an All-Party Parliamentary Group on Flexible and Family Friendly Working, which was re-formed in April 2025, following the election of the Labour Party in July 2024. This will enable us to deepen our connection with parliamentarians on both sides of the House and allow us to use the insights from our employer members to influence policy. The Working Families Index 2025 Report published in May, focusses on the experiences of working parents and carers. The Report will inform our focus for the next two years. Working Families launched Family Friendly Workplaces Certification in the UK on the 1[st] April 2025, in partnership with Parents at Work, Australia. The Certification has had considerable success in Australia, with 150 certified employers in Australia, covering 1 million employees. The programme enables organisations to assess their own social impact against the UN’s Sustainable Development Goals. Working Families have acquired exclusive rights to use the Parents at Work platform to 4 **WORKING FAMILIES TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025** deliver the accreditation within the UK and hold the sole rights to commercialise it in this territory and this expenditure has been recognised as an intangible asset. 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. ## Financial Review ## Results for the financial period A summary of the results for the period can be found on page 14 of this report and accounts. During the year, total income amounted to £1,213,420 (2024: £1,047,760). Income from grants and donations amounted to £490,700 (2024: £410,553), income from charitable activities amounted to £581,559 (2024: £525,582), and income from other trading activities amounted to £141,161 (2024: £111,625). Total expenditure for the year amounted to £1,198,768 (2024: £1,099,519). Expenditure on raising funds totalled £37,593 (2024: £84,956) and expenditure on charitable activities amounted to £1,161,175 (2024: £1,014,563). This results in a net surplus and net increase in funds during the year of £14,652 (2024: net deficit and net decrease in funds of £51,759). ## Financial position The balance sheet shows total funds of £257,091 (2024: £242,439). 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 £257,091 (2024: £242,439). ## 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 2025 the Trustees assessed this minimum threshold to be £158,569, 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 2025 the Trustees assessed this maximum threshold to be £577,000, 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 2025 of £257,091 fell within the Trustees’ agreed range. ## 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 5 **WORKING FAMILIES TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025** 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: - as 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. ## 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 - The introduction of Family Friendly Workplaces Certification, in partnership with Parents at Work, Australia, along with a continued focus on Employer Services as the major unrestricted income contributor to the charity 6 **WORKING FAMILIES TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025** - A 5% increase in the cost of joining Working Families as an employer member to protect income streams during an inflationary period Working Families continue to work with JS2 as its accountants and Buzzacott LLP, as auditors in 2019 following a tender process. In 2022/23 a review was conducted by the Board and it was agreed to continue working with JS2 and Buzzacott LLP. ## 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 usually meets monthly, or as required. - The Strategy and Engagement Committee reviews the charity’s performance against the new strategic framework and its engagement with stakeholders to support the charity’s ability to meet its aims. It usually meets monthly, or as required. ## 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 17 July 2025 by: Helen Humphreys, Chair Neha Kulkarni, Treasurer 7 ## **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 2025 which comprise the statement of financial activities, the balance sheet, the 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 2025 and of 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, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended). ## **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 **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WORKING FAMILIES (CONTINUED)** 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. ## **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 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion: - ♦ proper and adequate 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 of the small companies’ exemptions in preparing the trustees’ report and 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. 9 **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WORKING FAMILIES (CONTINUED)** ## **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: 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. 10 **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WORKING FAMILIES (CONTINUED)** 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. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. ## **Use of our report** This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charity’s trustees as a body, in accordance with Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 10 of the Charities Accounts (Scotland) Regulations 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) For and on behalf of Buzzacott Audit LLP, Statutory Auditor 130 Wood Street London EC2V 6DL Date: 22 July 2025 Buzzacott Audit LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006. 11 ## **WORKING FAMILIES STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2025** The notes on the following pages form part of these financial statements 12 ## **WORKING FAMILIES (Registered Company No. 04727690) BALANCE SHEET AS AT 31 MARCH 2025** 17/07 Approved by the trustees on _................. 2025 and signed on their behalf by: The notes on the following pages form part of these financial statements 13 ## **WORKING FAMILIES STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025** The notes on the following pages form part of these financial statements 14 **WORKING FAMILIES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025** ## **1. Accounting policies** ## **Basis of preparation** These financial statements have been prepared for the year to 31 March 2025. Comparative information reflects the year to 31 March 2024. 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 in the following areas: - The allocation of overheads and governance costs between charitable and expenditure categories and fundraising costs. - The basis of income recognition for the family friendly workplace certification and sponsorship - The recognition of upfront costs for the family friendly workplace certification ## **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. 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. 15 **WORKING FAMILIES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025** ## **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. Income from sponsorship is recognised over the term of the sponsorship deal. Income from certification is recognised in proportion to the portion of the performance obligation that has been satisfied. 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. ## **Amortisation** Amortisation have been calculated to write off the cost of intangible fixed assets over their expected lives at 25% per annum on a straight line basis. Working Families's policy is to capitalise intangible assets where future economic benefits from the asset are expected and the cost of the asset can be reliably measured. ## **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. ## **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. 16 **WORKING FAMILIES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025** ## **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. ## **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. 17 **WORKING FAMILIES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025** ## **3. Income from charitable activities** |Employer membership
Consultancy and Training
Other income|**Unrestricted**
**£**
497,867
31,207
52,485
**581,559**|**Restricted**
**£**
-
-
-
**-**|**2025 Total**
**£**
497,867
31,207
52,485
**581,559**|**2024 Total**
**£**
501,765
13,341
10,476| |---|---|---|---|---| |||||**525,582**| All income from charitable activities in the prior year was unrestricted. ## **4. Income from other trading activities** |Sponsorships|**Unrestricted**
**£**
141,161
**141,161**|**Restricted**
**£**
-
**-**|**2025 Total**
**£**
141,161
**141,161**|**2024 Total**
**£**
111,625| |---|---|---|---|---| |||||**111,625**| 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**|**Staff**
**costs**
**£**
352,889
340,259
114,990
808,138
23,046
136,526
**967,710**|**Other direct**
**costs**
**£**
59,068
34,259
13,288
106,615
4,389
120,054
**231,058**|**Support**
**costs**
**£**
109,776
107,154
29,492
246,422
10,158
(256,580)
**-**|**Total**
**2025**
**£**
521,733
481,672
157,770| |---|---|---|---|---| |||||1,161,175
37,593
-| |||||**1,198,768**| 18 **WORKING FAMILIES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025** |**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
Finance, office and admin costs
Governance - audit fee
**Total support costs**
**6. Net income for the year**
**This is stated after charging**
Staff costs
Audit||**Staff**
**costs**
**£**
306,240
330,213
116,269
752,722
63,731
84,702
**901,155**|**Other direct**
**costs**
**£**
28,487
30,374
11,141
70,002
3,705
124,657
**198,364**||**Support**
**costs**
**£**
78,858
86,754
26,227
191,839
17,520
(209,359)
**-**
**2025**
**£**
136,526
12,392
38,257
7,093
51,927
10,385
**256,580**
**2025**
**£**
967,710
10,385||**Total**
**2024**
**£**
413,585
447,341
153,637| |---|---|---|---|---|---|---|---| ||||||||1,014,563
84,956
-| ||||||||**1,099,519**| ||||||||**2024**
**£**
84,702
8,660
45,361
7,627
53,109
9,900| ||||||||| ||||||||**209,359**| ||||||||**2024**
**£**
901,155
9,900| ||||||||| ## **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|**2025**
**£**
858,658
65,687
43,365
**967,710**|**2024**
**£**
780,328
82,216
38,611| |---|---|---| |||**901,155**| 19 **WORKING FAMILIES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025** 20 **WORKING FAMILIES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025** 21 ## **WORKING FAMILIES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025** 22 ## **WORKING FAMILIES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025** 23