ANNUA£ REs>oRfAM) AccollrS 2023/2024 •• •• •• "271ew Ser• fA¢ a&rf4qg Se¢e•% . •• Charity Registration No. 1114755 Company Registration No. 4018585
LONDON ACCOUNTANCY PRACTICE ANNUAL REVIEW 2023-2024 DirectorslTrustees Members of Staff Volunteers Report from the Chair Report from the Director Indopendent Examiner's Report Statement of Financial Activltles Balance Sheet 10 Note8 To the Accounts 11
LONDON ACCOUNTANCY PRACTICE Annual Review 2023-2024 Directorsrrrustees Abraham Tecle William Anang Dr. Henry Akinyeye Alfred Syl- Turay Staff Members Ade Adebambo Chairperson Treasurer Member Member Sandra Koleosho Paul Banda Directorl Company Secretary Finance/ Payroll Manager Administrator Volunteers Samuel Ikotun Giovina Lenny Vidal Sejas Evbo Joyce Faluyi Louise Havercroft Hinsenne Ararsso Mrs Victoria Nwachukwu Student Placement Halimah Temitope Ilori Sayed Sina Mousavi LAP would like to welcome its latest recruit of volunteers for 2023-2024, Ms Victoria Nwachukwu and thank everyone for their hard work and contribution8 over the years. LAP is grateful for the unstinting efforts and support of its volunteers. Our hearty congratulations to those of you that were able to secure employment due to the practical experience and support you have received from LAP. Our sincere apologies to those we have not been able to provide opportunities for due to limited resources and staff time. It is estimated that over two thousand five hundred volunteer hours were provided by our volunteers during the year and if this is conservatively valued at £15.00 an hour, the volunteer efforts amounted to over £37,500.00. (Thirty-seven thousand and five hundred pounds) SPECIAL THANKS Special thank you goes out to all our members and service users for their custom and support
CHAIRPERSON'S REPORT FOR THE YEAR ENDED 31ST MARCH 2024 l am pleased to report that despite various challenges faced by the voluntary sector in the last ten years including the austerity measures and the unpleasant effect of COVID 19, the London Accountancy Practice (LAP) continues to be at the forefront serving the Voluntary and Community Sector as it has done for about 37 years. Over the years, the sector has witnessed so many changes and we are glad that lap continues to offer advice, training and support to many organisations to keep them going despite funding challenges among others, including new statutory changes. All this means that LAP has to be up to date with legal changes including the Charity Commission and the Companies House and Her Majesty Revenue and Tax (HMRC). As you all know funding has been very difficult to secure and more quality advice continue to be needed. AS an organization, in order to cope with the current funding climate and continue to service our clients, we have re-strucl'ured our activities and drastically cut our overheads wher8 possible. During the year we work with other organizations both inside and outside the borough to provide training activities as a joint venture, Our one 2 one advice sessions increased during the year as many organlzations demand advice and support wilh their finances, planning and budgeting to determine how long they might be able to survive or pay their staff rodundancy. Wo also continue to experience a wave in organizations and individuals wanting advice on Community Interest Companies (CICS) and Charity Incorporated Organisations {CIOs) In addition to the above, there are also organizations requesting information on funding activities. As a charitable organisation our self, w8 are consciously aware of the fact that many small voluntary and community sector organizations are going to suffer slnce many of them will not be in a position to pay market price for the seniices we provide. However, our client groups may have to experience some slight increase in our charges so that we can continue to be able to support the small and medium size organizations that desperately need our support and services to help them deliver their core services. On another front, we contiriue to train volunteers and graduates to equip and provide them with practical experience that are so needed to prepare them for the future. This year we had students from Southwark College and Teeside University and they have been brilliant. Moreover, in our formal and informal conversation and feedback from our client groups, we are made to understand that many of them may not be able to survive or even met normal basic statutory and funding requirements which many large organisations take for granted if not because of the kind of training, support and other services that We provide Abraham Tecle..................
LONDON ACCOUNTANCY PRACTICE DIRECTORS, AND TRUSTEES, REPORT FOR THE YEAR ENDED 31ST MARCH 2024. The trustees, who also act as directors of LONDON ACCOUNTANCY PRACTICE for the purpose of Company Law, are pleased to present their report and the independently examined financial statements for the year ended 31. March 2024. OBJECTS, ORGANISATION AND ACTIVITIES LAP'S objects continue to be.. The promotion of efficiency and effectiveness of charities and voluntary and community organisations by the provision of a comprehensive financial advisory service and the training of their employees in relevant financial skills. Helping individual organisation (whether incorporated or unincorporated) that for whatever reasons have some form of financial difficulty or crisis. Advising and helping such individual organisations to set up appropriat6 books of accounts and keep them up to date. Promotion of methods of bookkeeping. Advising on information flows between the relevant members and management committee of individual organisation and giving advice on structures to ensure accountability. Giving advice on budgets, funding, local authority, central government and other grants, salaries and national insurance, local government pay scales and cash flow. Enabling individual organisations to have a clearer understanding of local authority finance in so far as this affects the organisation's decision making,. Provision of training (group and in-house) to achieve efficiency and effectiveness. DEVELOPMENTS, ACTIVITIES AND ACHIE.VEMENTS Southwark is a very diverse borough with over 1074 registered charities and community groups and over 50 % of these have income of less than £100k most of whom are doing valuable work and providing essential setwices to our local communities. It is vitally important that we support and sustain the work of these groups which is why LAP plays such a significant infrastructure role in the borough and London wide. As a matter of fact, due to the lack of Community Accountancy Services in most London boroughs, we are now inundated with requests from other areas of London thank before. In our everyday work with other infrastructure organisations within and outside the borough we see evidence of a very wide range of organisational management needs, including many needs around developing sound financial systems about financial accountability, auditing/ independent examination and preparing annual accounts. As this is a specialist area requiring expert, accurate advice, LAP has been a key resource for local voluntary groups as well as being a very useful referral point for other infrastructure agencies. By offering local voluntary and community organisations expert advice and support on a range of financial issues, LAP is able to provide a highly specialised, much needed service. LAPS work stretches much further than simply helping groups to develop sound financial controls, or providing a payroll service, although these are in themselves very useful. The longer term outcomes of our work however, have much more sustainable benefits.. organisations, who are encouraged to implement good financial practices today are far more likely to be successful and capable in their future initiatives eg in fundraising, in running efficient projects, in managing funds appropriately, in being accountable and open, in
LONDON ACCOUNTANCY PRACTICE DIRECTORS, AND TRUSTEES, REPORT FOR THE YEAR ENDED 31ST MARCH 2024. providing good value for money, and in meeting the requirements of funders, the Charity Commission, Companies House, HMRC and other statutory bodies. The impact of all the above allows the organisations we work with to make successful applications to potential funders and as a result being able to lever in more money into the borough. LAP continues to provide particular support to smaller and medium-sized voluntary and community organisations and those representing disadvantaged sections of the community including the BAMERS (Black, Asian and Minority Ethnic Refugee groups) to increase their capacity and help comply with the requirements of funders, Companies House, Charity Commission and both local and central governments. The current economic and funding climate including the aftermath of COVID19 continue to pose challenges for many organisations and it is making it difficult if not impossible for many organisations to survive and the continuing complexity in charity financial reporting has resulted in heavy reliance on our setvices and this no doubt also put pressure on us and other organisation as we both continue to find ways of saving money and at the same time endeavour to provide good, quality services. Our areas of activities remain as follows.. INDEPENDENT EXAMINATION LAP continues to provide affordable alternatives to commercial services. We carried out 62 independent examinations during the year. This service has helped to develop and sustain most of the organisations we work with as they have been able to comply with both Charity law (2011 Charities Act) the 2006 Companies Act and various legislations. We have therefore saved organisations hundreds of pounds in penalties and surcharges. IMPACT As a result of this setvice, we have been able to increase the ability of small and medium- sized voluntary and community sector organisations to meet the reporting requirements of funders and other Stake holders including Companies House and HMRC. As a result of this service, disadvantage groups that would not have been able to access/ pay for the services of main streaml private sector accountancy firms were able to access our financial management support and are being assisted and supported to meet their statutory obligations. In addition, our clients have been able to lever in more funding to their organisations and the borough including new funding sources, effectively making them more sustainable and allowing them to be able to concentrate more on their core activities. PAYROLL ADMINISTRATION During the year, over 250 employees from over 55 organisations benefited from our efficient and cost-effective payroll administration and advice services. The Welfare Reforms has meant more enquiries from employers and employees alike seeking advice. IMPACT By providing a high quality and reliable payroll setvice along with advice and support for over 55 payroll client groups, we have released them to concentrate on their core activities. We deal with all aspects of payroll query from both the organisations and the HMRC and liaise
LONDON ACCOUNTANCY PRACTICE DIRECTORS, AND TRUSTEES, REPORT FOR THE YEAR ENDED 31ST MARCH 2024. between them whenever possible when any problems arise. By making the organisations aware of their responsibilities as employers, keeping them up to date with changing legislation and making them aware of their legal responsibilities, deadlines, etc, we have saved them a lot of money in penalties and surcharges. All companies are now legally responsible for filing all forms etc online which we now do for them. This has allowed many groups to make savings and cut back on back office costs. VOLUNTEERING, TRAINING AND WORK PLACEMENT LAP carried out a series of in-house training sessions during the year covering topics from Introduction to bookkeeping to Advance budgeting and the preparation of end of year accounts. These graduate trainees I volLJnteers were then sent to work with other groups and organisations enabling them to gain experience in the work place and the organisation valuable financial help at no cost to them. IMPACT The effectiveness of these training sessions could be seen in the quality of work produced by the trainees at their respective organisations after the training. Our cost-effective training meant that organisations continue to have better understanding of their financial position This also led to an increase in the capacity of small and medium sized voluntary and community sector organisations to manage their financial resources more effectively and efficiently.. Our adaptable financial control procedures have helped many organisations to be able to write their own in-house financial policy and procedures. This service has improved the social, financial and economic well-being of these volunteers as they continue secure paid employment. 3 got paid jobs during the year. ONE 2 ONE ADVICE Our free one to one advice and consultancy services continue to be popular with both old and emerging groups especially due to various changes and legislations relating to organisations being set up as social enterprises, Community Interest Organisations. 700/0 of registered charities in Southwark are also incorporated and we provided them with relevant advice. IMPACT This service has tremendously benefited a lot of our client groups during the year. We were able to provide much needed assistance and support for organisations putting in funding applications and to advise on company and charity registration. This service has helped many organisations to avoid an initial pitfall. COLLABORATIVE WORK LAP continues to work with other second tier organisations within the London Borough of Southwark and across other London boroughs including Community Southwark (CS), This has been very effective as it avoids duplication and helped the groups to receive tailor-made advice, training and support. OTHER Some groups faced particular challenges with the HMRC because they are not registered charity. Even though they carry out charitable activities, they needed help them with their corporation tax and other matters to do with the HMRC.
LONDON ACCOUNTANCY PRACTICE DIRECTORS, AND TRUSTEES, REPORT FOR THE YEAR ENDED 31ST MARCH 2024. RESERVE POLICY The Charity Commission requires charities to determine and explain their policy for free reserves. The trustees have reviewed its free reserves policy and have turned its entire unrestricted fund into an emergency reserve, and have set a target of £58,814.00 this year to enable LAP to méet its obligations for a period of g months in the event of a shortfall in income or sudden upturn in expenditure. RISK MANAGEMENT The trustees have examined the major risk that l.AP faces and believe that by maintaining our free reserves at a reasonable level, combined with our annual review of the controls over key financial systems, this will provide sufficient resources in the event of adverse conditions. The trustees have also examined other operational and bijsiness risks that we face and confirm that they have established systems to mitigate the significant risks. Signed on behalf of the trusteos Chairperson ,Abraham Tec16 Dated. ,2024
LONDON ACCOUNTANCY PRACTICE (A Company Llmlted by Guarantee) INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 MARCH 2024 INDEPENDENT EXAMINER'S REPORT I report Dn the account5 of the company for the year ended 31 March 2024, which are set out on page8 9 to 109. R8pectlva r•8pon8lbllltles of trustaes and examinor The Irustees (who are also th8 dlrectors of the company for the purposes of company law) are sPOnsible for the pr8paration of thè accounts. Th8 trust88s consider that an audit18 not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an indgpend&nt 8xaminion18 needed, Having 8atisfi8d myself that the charity is not Subject to audit under company law and 18 eligible for independent examination, it is my responsibility to.. exarnine the accounts under 86Ction 145 of the 2011 Act." to follow the prDcedure8 laid down in th8 general Direction8 given by the Charity Commission under section 145(5} (b) of the 2011 Act,. and to stat8 wh8th8r particular mattor8 have com8 to my attention. 8a•la of Indopend•nt èXamlne9 r8port My examination wa8 carrled out In accordance with the general Dir6Ction8 given by the Charlty Commission. An examlnatlon inelude8 a review of the accounting records kept by t charity and a comparison of the accounts presented wlth those records. It a180 includ8S nsideration of any unu8ual items or disclosure8 in the accourt8, and seeklng explanatlon8 from you a8 tru8te8s concerning any such matters. The procedure8 und8rtak8n do not provSde all th8 evidence that would be required in an audit 8nd consequently no opinion 18 given as to whether the accounts pr8S8nt a 'truo and falr view 8nd the report18 limited to those matters set out in the statement below. Indepondont examlner'g 3tat8m•nt In connection with my examination. no matter has come to my attentlon.. {1) bvhich gives me reasonable Cause to belleve that in any material SpeCt tho requiremènts., to keep accountln9 record8 in accordance wlth Section 386 of the Companie8 Act 2006; and to prepare accounts which accord with the accounting records, comply with the accounting r8quir8m&nt8 of 8eGtion 396 of the Companies Act 2006 and with the methods and prlnclples of the Statement of Recommended Practie•'. Accounting and Reporting by Charities have nol been met; or (2) to whlch, In my oplnion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. John Joseph Dolan FAAT, FAIA JJ Dolan & co 10 Gerard Court Hitherfield Lane Harpenden,Herts AL5 4JA
LONDON ACCOUNTANCY PRACIICE STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 STMARCH 2024 INCOMING RESOURCES Incoming Resources From Generated Funds Actiwties For Generating Fund¢ Investment Income Total Incomlng Resourc85 RESOURCES EXPENDED Charltable Actlvltlo8 2024 2024 Unrestrict8d Restricted Fund Fund 2024 Total Fund 2023 Total Fun Not85 75,752 75,752 63,130 76,753 63,131 72,871 72,871 Total Resources Expended 66,624 72,871 66,624 NETINCOMING RESOURCES Fund Balanc88 Brought Forward at 1stAprll 2023 Fund Balances Carrled Forward at 1st Aprll 2024 2,882 2,882 3,493 27,916 27,916 31,409 30,798 30,798
LONDON ACCOUNTANCY PRACTICE BALANCE SHEET AS AT 31ST MARCH 2024 Notes 2024 2023 CURRENT ASSETS Debtors and prepayments Cash at 8ank and in Hand 35 409 4788 40.197 26.123 5192 31,310 CURRENT LIABILITIES Cr•dltors And Accruals Amount falling due wrthin one yeai N•t Curr•nt Ass•ts 9399 3399 30.798 27,916 RESERVES Restricted Funds Unrestricted Funds Designaied Funds 5798 25.000 30.798 For the period ended 31 March 2024 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to Small companies. Directors, responsibilities.. the members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476, the directors acknowledge their responsibilities for complying with th8 requirements of the Act wilh respect to accounting records and th& preparation of the accounts these accounts have been prepared in accordance with the provision applicable to companies subject to the small companies, regime. The financial statements on pages 8 to 10 We approved by the board of directors on 2916 25 000 27.916 and signed on its behalf by William Anang -Treasurer 10
LONDON ACCOUNTANCY PRACTICE (A Company Limited by Guarantee) NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES 1.1 Basis of preparation of Financial Statements The financial statements are prepared under the historic cost convention and include the results of the company's operations which are described in the Board of trustees, Report and all of which are continuing. The accounts have been prepared in accordance with the Statements of Recommended Practice for company accounts. The company has taken advantage of the exemption of Financial Reporting Standard No 1 from the requirements to produce a cash flow statement on the grounds that it qualifies as a small company. 1.2 Incoming Resources 1.2.1 Revenue grants are credited to the Statement of Financial Activities on the earlier date of when they are received or when they are receivable, unless they relate to a specific future period, in which case they are included on the Balance Sheet as deferred income to be recognised in the future accounting period. 1.2.2 Grants received for specific purposes are accounted for as restricted funds in the Statement of Financial Activities. 1.3 Restricted Funds Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is identified to the fund, together with a fair allocation of management and support costs. 1.4 Unrestricted Fund8 Unrestricted funds are donations and other incomes received or generated for the objects of the organisation without further specified purpose and are available for general funds. 1.5 Designated Funds Designated funds are unrestricted funds earmarked by the board of trustees for particular purposes. 1.6 Tangible Fixed Assets All expenditure that related to equipment has been charged to the Statement of Financial Activities in the year of acquisition because they were of low value. A register of assets is maintained.
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